STARBUCKS CORPORATION SAID FISCAL FIRST QUARTER SALES JUMPED SEVENTY ONE PERCENT TO SIXTY SIX MILLION DOLLARS FROM THIRTY EIGHT POINT SIX MILLION DOLLARS A YEAR AGO THE COFFEE PURVEYOR SAID SALES AT STORES OPEN AT LEAST A YEAR GREW TEN PERCENT FOR THE PERIOD ENDED JANUARY SECOND U. S. SHOE CORPORATION SAID SAME STORE SALES DECLINED ZERO POINT FIVE PERCENT FOR THE FIVE WEEKS ENDED JANUARY FIRST FROM THE YEAR AGO PERIOD TOTAL SALES FELL FIVE PERCENT TO TWO HUNDRED SIXTY EIGHT POINT FIVE MILLION DOLLARS FROM TWO HUNDRED EIGHTY TWO POINT FIVE MILLION DOLLARS IN THE YEAR AGO PERIOD FOR THE COMPANY'S WOMEN'S APPAREL OPTICAL AND FOOTWEAR RETAILING OPERATIONS SAME STORE SALES FOR ITS WOMEN'S APPAREL GROUP FELL TWO PERCENT WHICH THE COMPANY ATTRIBUTED TO SOFTNESS IN THE TWO WEEKS PRECEDING CHRISTMAS AND A QUOTE VERY PROMOTIONAL RETAIL ENVIRONMENT QUOTE SAME STORE SALES AT THE COMPANY'S LENSCRAFTERS OPTICAL UNIT ROSE FOUR PERCENT WHILE THOSE OF THE FOOTWEAR RETAILING GROUP ROSE ONE PERCENT FOR THE ELEVEN MONTHS ENDED JANUARY FIRST TOTAL RETAIL SALES DECREASED ZERO POINT TWO PERCENT TO ONE HUNDRED EIGHTY EIGHT POINT SIX MILLION DOLLARS FROM THE YEAR AGO PERIOD WHILE COMPARABLE STORES SALES FOR THE ELEVEN MONTH PERIOD INCREASED ONE POINT ONE PERCENT TOTAL NUMBER OF STORES OPEN WAS TWO THOUSAND TWO HUNDRED SEVENTY EIGHT COMPARED WITH TWO THOUSAND FOUR HUNDRED SIXTY EIGHT LAST YEAR A DECLINE OF EIGHT PERCENT CONTINENTAL AIRLINES SAID ITS DECEMBER TRAFFIC FELL FIVE POINT EIGHT PERCENT TO THREE BILLION THREE HUNDRED FIVE MILLION TWO HUNDRED TWO THOUSAND REVENUE PASSENGER MILES FROM THREE BILLION FIVE HUNDRED NINE MILLION TWENTY SEVEN THOUSAND A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE AIRLINE SAID ITS LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO SIXTY TWO PERCENT FROM SIXTY ONE POINT FOUR PERCENT FOR THE FULL YEAR NINETEEN NINETY THREE CONTINENTAL SAID TRAFFIC FELL ONE POINT SEVEN PERCENT TO FORTY TWO BILLION THREE HUNDRED TWENTY FOUR MILLION ONE HUNDRED EIGHTY THOUSAND REVENUE PASSENGER MILES FROM FORTY THREE BILLION SEVENTY ONE MILLION NINE HUNDRED TWENTY EIGHT THOUSAND IN NINETEEN NINETY TWO THE LOAD FACTOR FELL TO SIXTY THREE POINT TWO PERCENT FROM SIXTY THREE POINT FIVE PERCENT MORGAN STANLEY GROUP INCORPORATED LAUNCHED A THREE BILLION RUPEE NINETY SIX POINT EIGHT MILLION DOLLARS INDIAN INVESTMENT FUND ON SCHEDULE THIS WEEK AFTER HEADING OFF A COURT CHALLENGE IN INDIA THE FUND IS THE LARGEST OF THREE PRIVATE MUTUAL FUNDS IN THE INDIAN MARKET IT ALSO IS THE FIRST FROM A ONE HUNDRED PERCENT OWNED SUBSIDIARY OF A FOREIGN FINANCIAL INSTITUTION THE NEW MORGAN STANLEY GROWTH FUND EXPECTS TO CLOSE TOMORROW BECAUSE OF STRONG DEMAND IT IS EXPECTED TO BE LISTED ON FIVE INDIAN STOCK EXCHANGES INCLUDING BOMBAY THE GOVERNMENT OPENED THE ASSET MANAGEMENT AND MUTUAL FUND BUSINESS TO PRIVATE COMPANIES LAST YEAR AND SEVERAL FUNDS HAVE BEEN APPROVED BY THE SECURITIES AND EXCHANGE BOARD OF INDIA OR SEBI LATE LAST MONTH A LOCAL DELHI COURT ORDERED A STAY OF THE MORGAN STANLEY ISSUE BUT LAWYERS QUICKLY WON AN ORDER FROM THE SUPREME COURT OF INDIA ALLOWING THE ISSUE TO PROCEED ONE PETITION HAD ARGUED THAT BECAUSE MORGAN STANLEY'S DIRECTORS WERE FOREIGNERS THE FORTUNES OF INDIAN INVESTORS WOULD QUOTE BE AT THE MERCY QUOTE OF FOREIGN NATIONALS WHO QUOTE CANNOT BE EASILY HELD LIABLE AND RESPONSIBLE QUOTE UNDER INDIAN LAWS MUTUAL FUND MARKETING EXECUTIVE ROBERT LEO IS LEAVING SMITH BARNEY SHEARSON FOR MASSACHUSETTS FINANCIAL SERVICES BOSTON M. F. S. IS ONE OF THE OLDEST MUTUAL FUND COMPANIES IN THE U. S. BUT IN RECENT YEARS IT HASN'T GROWN AT THE RATE OF MANY OF ITS COMPETITORS M. F. S. WHICH HAS TURNED OVER ITS TOP MANAGEMENT IN RECENT YEARS IS TRYING TO BEEF UP ITS SALES AND MR. LEO WOULD BECOME PART OF THAT EFFORT MR. LEO FORTY NINE YEARS OLD WILL BE DIRECTOR OF BROKER DEALER SALES AT M. F. S. BEGINNING JANUARY SEVENTEENTH HIS GOAL IS TO BOOST THE AMOUNT OF M. F. S. FUNDS SOLD THROUGH BROKERS HE HAD A SIMILAR TITLE AT SMITH BARNEY SHEARSON MR. LEO'S DEPARTURE COMES AT A TIME WHEN SMITH BARNEY SHEARSON IS AGGRESSIVELY PARING OPERATIONS FOLLOWING ITS AUGUST MERGER WITH PRIMERICA CORPORATION NOW TRAVELERS INCORPORATED M. F. S. A SUBSIDIARY OF SUN LIFE ASSURANCE COMPANY OF CANADA MANAGES THIRTY FIVE BILLION DOLLARS SEGA ENTERPRISES LIMITED SAID IT PLANS TO BEAM VIDEO GAMES INTO JAPANESE HOMES VIA BROADCAST SATELLITE AND CABLE TELEVISION IN THE LATTER HALF OF THIS DECADE SEGA ALONG WITH SOFTWARE MAKERS CAPCOM COMPANY KONAMI CORPORATION AND TAITO CORPORATION AND PUBLIC TELEVISION ENTITY JAPAN BROADCASTING CORPORATION KNOWN AS N. H. K. HAS SET UP AN QUOTE ENTERTAINMENT TASK FORCE QUOTE AND IS AWAITING CHANGES IN JAPANESE BROADCAST REGULATIONS THAT WOULD MAKE SUCH GAMEPLAYING POSSIBLE THE IDEA IS TO OFFER CONSUMERS ACCESS TO A HOST OF SOFTWARE THROUGH SATELLITE BROADCASTS OR CABLE T. V. HOOKUP POSSIBILITIES INCLUDE ON LINE GAME COMPETITIONS BETWEEN USERS IN APRIL SEGA FORMED A VENTURE WITH TIME WARNER INCORPORATED'S TIME WARNER ENTERTAINMENT AND TELE COMMUNICATIONS INCORPORATED BOTH OF THE U. S. TO PIPE VIDEO GAMES INTO U. S. HOMES BY WAY OF CABLE T. V. SEGA'S PLANS INCLUDE USING THE B. S. FOUR BROADCAST SATELLITE TO BE LAUNCHED IN NINETEEN NINETY SEVEN A COMPANY SPOKESWOMAN SAID THE ENTERTAINMENT TASK FORCE IS LOOKING INTO SUCH SPECIFICS AS HOW TO CHARGE FOR THE SATELLITE GAMES SHE SAID RIVAL NINTENDO COMPANY HAS ALREADY ANNOUNCED SIMILAR PLANS FOR SATELLITE GAMES MEANTIME SEGA SAID IT WILL LAUNCH IN THE U. S. THIS MARCH A VIDEO GAME SYSTEM WITH A DETACHABLE C. D. ROM PLAYER THAT ALSO WORKS AS A PORTABLE PLAYER FOR MUSIC C. D.S THE GENESIS CDX MULTIMEDIA C. D. ROM ENTERTAINMENT SYSTEM WHICH COMBINES THE FUNCTIONS OF THE COMPANY'S POPULAR GENESIS GAME SYSTEM AND ITS OPTIONAL SEGA C. D. ATTACHMENT WILL SELL FOR THREE HUNDRED NINETY NINE DOLLARS AND NINETY NINE CENTS SEGA SAID IN ADDITION TO THE HARDWARE SIX C. D. ROM SOFTWARE TITLES ARE TO BE INCLUDED THE GENESIS CDX WILL RUN BOTH GAME CARTRIDGES AND C. D. ROMS IT SAID THE SEGA SPOKESWOMAN SAID THE COMPANY EXPECTS TO INTRODUCE THE GENESIS CDX IN EUROPE IN MARCH AS WELL ALTHOUGH IT HASN'T COMPLETED PLANS SEGA HASN'T DECIDED WHETHER TO SELL THE GENESIS CDX IN JAPAN SHE SAID THE SPOKESWOMAN SAID SEGA IS AIMING FOR WORLD WIDE GENESIS CDX SALES OF TWO HUNDRED THOUSAND UNITS IN THE FIRST YEAR DELL COMPUTER CORPORATION SAID ITS CHIEF TECHNOLOGY OFFICER G. GLENN HENRY LEFT THE COMPANY TO JOIN MICROPROCESSOR DESIGNER M. I. P. S. TECHNOLOGIES INCORPORATED MR. HENRY FIFTY ONE YEARS OLD WILL BE P. C. DIVISION DIRECTOR FOR M. I. P. S. A MOUNTAIN VIEW CALIFORNIA UNIT OF SILICON GRAPHICS INCORPORATED IN THE NEW POST MR. HENRY WILL WORK ON DEVELOPING M. I. P. S. PROCESSORS FOR PERSONAL COMPUTERS MR. HENRY JOINED DELL IN NINETEEN EIGHTY EIGHT AT THE TIME THE MAIL ORDER COMPUTER COMPANY HERALDED HIS ARRIVAL AS A SIGN OF ITS COMMITMENT TO ADVANCED P. C. RESEARCH AND TECHNOLOGY BEFORE JOINING DELL MR. HENRY SPENT TWENTY ONE YEARS AT INTERNATIONAL BUSINESS MACHINES CORPORATION WHERE HE LED THE EARLY DEVELOPMENT OF BIG BLUE'S UNIX WORKSTATION LINE HE LATER WAS AWARDED THE TITLE OF I. B. M. FELLOW A TOP TECHNICAL ACCOLADE AT THE COMPANY LAST YEAR HOWEVER MR. HENRY'S DAY TO DAY DUTIES AT DELL WERE DIMINISHED WHEN THE COMPANY HIRED ERIC HARSLEM A FORMER APPLE COMPUTER INCORPORATED VICE PRESIDENT AS THE NEW SENIOR VICE PRESIDENT OF THE PRODUCT GROUP A POST PREVIOUSLY HELD BY MR. HENRY DELL DIDN'T SAY WHETHER MR. HENRY'S JOB AS CHIEF TECHNOLOGY OFFICER WOULD BE FILLED HERE'S A RADICAL IDEA FOR COMPANIES IF YOU WANT TO SAVE MONEY FIRE YOUR CUT RATE LAWYERS HIRE EXPENSIVE ONES INSTEAD CRAZY CONSIDER THE CASE OF U. S. F. AND G. CORPORATION THE BIG INSURANCE COMPANY WHICH DID JUST THAT AND HAS REAPED ASTONISHING REWARDS AFTER SWITCHING ABOUT HALF OF ITS LEGAL WORK TO BETTERKNOWN ATTORNEYS AND PRICIER LAW FIRMS JUST OVER A YEAR AGO THE INSURER SAYS ITS TOTAL COST OF DEFENDING AND SETTLING CLAIMS PLUNGED BY FIFTY MILLION DOLLARS QUOTE THE BEST LAWYERS ARE EXPENSIVE QUOTE SAYS U. S. F. AND G'S GENERAL COUNSEL JOHN A. MACCOLL BUT THE SECOND BEST LAWYERS ARE VERY EXPENSIVE HIS COMPANY HAS LEARNED HE SAYS THAT TOP FLIGHT ATTORNEYS AT ELITE FIRMS WASTE LESS TIME WIN MORE CASES MAKE FEWER MISTAKES AND ARE MORE INTIMIDATING AT THE SETTLEMENT TABLE U. S. F. AND G'S RISKY MOVE RUNS DIRECTLY COUNTER TO THE CURRENT LEGAL COST MANAGEMENT ZEITGEIST EVERYWHERE COMPANIES ARE SCRUTINIZING THEIR LEGAL BUDGETS AND TURNING TO LOW COST ALTERNATIVES WHEN THEY CAN'T BROWBEAT THEIR TRADITIONAL LAW FIRMS INTO CUTTING RATES IN SOME INSTANCES COMPANIES ARE CONDUCTING BEAUTY CONTESTS IN WHICH LAWYERS COMPETE FOR WORK BY TRYING TO SUBMIT THE LOWEST BID OR ARE DEMANDING FIXED FEE DEALS IN WHICH LAW FIRMS AGREE IN ADVANCE TO MEET ALL OF A COMPANY'S LEGAL NEEDS FOR A SET SUM BUT THE BALTIMORE PROPERTY AND CASUALTY INSURER GAMBLED THAT THE WAY TO SAVE MONEY MIGHT NOT BE TO SHAVE FEES BUT TO TRY TO MAKE DEEP CUTS IN A BIGGER LEGAL COST DAMAGES ACTUALLY PAID AS A RESULT OF LAWSUITS AGAINST THE COMPANY'S POLICYHOLDERS THE IDEA SUGGESTED BY MR. MACCOLL WAS APPROVED BY CHIEF EXECUTIVE OFFICER NORM BLAKE JUNIOR THE OFFICIAL HAD TOLD MR. MACCOLL TWO YEARS AGO THAT HE WAS WORRIED THAT THE COMPANY HAD DEVELOPED A REPUTATION AS AN EASY MARK IN CLAIMS CASES WITH WEAK DEFENSE ATTORNEYS WHO CAVED IN EASILY THE EXECUTIVES REVIEWED U. S. F. AND G'S ANNUAL COST OF DEFENDING CLAIMS TEN PERCENT WAS GOING TO LAWYERS IN FEES AND NINETY PERCENT WAS BEING PAID TO PLAINTIFFS IN SETTLEMENTS AND DAMAGE AWARDS MOST COMPANIES OBSESS ABOUT THE LEGAL FEES AND DON'T TRY TO MANAGE THE MORE IMPORTANT NUMBER THE COST OF LOSING MR. MACCOLL SAYS WE DECIDED TO TRY AND REDUCE THE NINETY PERCENT BY LEVERAGING THE TEN PERCENT HE IMMEDIATELY EMBARKED ON A TWOSTEP PROGRAM FIRST HE ENLARGED TO TWELVE ATTORNEYS FROM THREE THE INHOUSE LAW DEPARTMENT THAT HANDLES SUITS AGAINST POLICYHOLDERS MORE THAN TRIPLING ITS BUDGET TO THREE MILLION DOLLARS EXPERIENCED LITIGATORS WERE LURED WITH SALARY OFFERS THAT WERE COMPETITIVE WITH LOCAL LAW FIRMS NEXT TOP STAFF ATTORNEYS WERE DISPATCHED ACROSS THE COUNTRY TO EVALUATE TWO HUNDRED FIFTY OF THE COMPANY'S PRINCIPAL OUTSIDE LAW FIRMS THESE TENDED TO BE SMALL FIVE TO TEN PERSON OFFICES THAT CHARGED ABOUT EIGHTY DOLLARS AN HOUR U. S. F. AND G. LAWYERS GRILLED THE OUTSIDE COUNSEL ABOUT TRIAL EXPERIENCE AND PAST VICTORIES QUOTE ASKING HOW MANY SCALPS THEY HAD HANGING FROM THEIR BELT QUOTE SAYS MR. BLAKE THE ATTORNEYS EVEN PHONED PLAINTIFFS' LAWYERS FOR THE NAMES OF DEFENSE COUNSEL THEY FEARED MOST AFTER A NINE MONTH REVIEW THE AX FELL ON ABOUT ONE HUNDRED OF U. S. F. AND G'S OUTSIDE LAW FIRMS IN THEIR PLACE THE COMPANY TURNED TO A VARIETY OF COSTLIER FIRMS THESE INCLUDED SUCH WHITE SHOE INSTITUTIONS AS BALTIMORE'S PIPER AND MARBURY AND HOUSTON'S FULBRIGHT AND JAWORSKI BIG FIRMS WHERE A LIST LITIGATORS BILL UPWARDS OF TWO HUNDRED DOLLARS AN HOUR RESULTS WERE APPARENT ALMOST IMMEDIATELY NEIL DILLOFF A PARTNER AT PIPER WAS RETAINED FOR A PROJECT THAT THE COMPANY DUBBED OPERATION HIRED GUN HE REVIEWED SIXTEEN OF U. S. F. AND G'S PRICKLIEST CASES IN TEXAS AND WAS ABLE TO SETTLE THEM FOR A TOTAL OF SIX POINT THREE MILLION DOLLARS OR THREE MILLION DOLLARS LESS THAN PREVIOUS OUTSIDE LAWYERS HAD SUGGESTED WOULD BE THE LOWEST AMOUNT POSSIBLE IN ANOTHER CASE FULBRIGHT PARTNER SCOTT LASSETTER WON A JURY TRIAL ON BEHALF OF A U. S. F. AND G. POLICYHOLDER A FEW WEEKS AFTER THE INSURANCE COMPANY'S PREVIOUS OUTSIDE LAWYER HAD RECOMMENDED SETTLING FOR ONE MILLION DOLLARS AT THE END OF LAST YEAR THE COMPANY CALCULATED THE MONEY IT SPENT IN SETTLEMENTS AND DAMAGES IN NINETEEN NINETY THREE AND COMPARED THAT FIGURE ROUGHLY ONE POINT TWO BILLION DOLLARS WITH ESTIMATES OF WHAT THE COMPANY THOUGHT IT WOULD HAVE PAID IN THE SAME CASES BEFORE STARTING ITS NEW LEGAL PROGRAM THE DIFFERENCE THIRTY FIVE MILLION DOLLARS EVEN MORE SURPRISING WAS THE TALLY FOR LEGAL FEES THE COMPANY CAME IN FIFTEEN MILLION DOLLARS UNDER BUDGET SPENDING ABOUT ONE HUNDRED THIRTY FIVE MILLION DOLLARS ON OUTSIDE LAW FIRMS THIS WAS A PARTICULAR BOON BECAUSE THE COMPANY HAD EXPECTED ITS LEGAL FEES TO RISE SOMEWHAT SINCE IT WAS SPENDING MORE PER HOUR ON LAWYERS AND BRINGING MORE CASES TO TRIAL MR. MACCOLL SAYS THE SAVINGS MAY ACTUALLY BE EVEN GREATER BECAUSE OF ANOTHER INTANGIBLE BENEFIT DETERRENCE OVER TIME PLAINTIFFS' LAWYERS START TO SENSE THAT A COMPANY IS SERIOUS ABOUT DEFENDING ITSELF AND THEY'LL STOP BRINGING NUISANCE CASES HE SAYS TOP OF THE LINE LAW FIRMS ARE SURE TO CHEER SUCH REPORTS WHERE WORDS LIKE VALUE HAD STARTED TO CREEP INTO THEIR PROMOTIONAL LEXICON NOTIONS LIKE QUALITY MIGHT BEGIN TO REAPPEAR ARMED WITH STORIES LIKE U. S. F. AND G'S BIG TICKET LAWYERS CAN START WRAPPING THEMSELVES ONCE AGAIN IN THE CASHMERE MANTLE OF ELITISM YOU MIGHT SAY IT'S LIKE BUYING A MERCEDES RATHER THAN A GEO SAYS MR. DILLOFF OF THE TWO HUNDRED SIXTY FIVE DOLLAR HOURLY RATE HE CHARGED U. S. F. AND G. THE MERCEDES RUNS BETTER IS MORE EFFICIENT AND DOESN'T BREAK DOWN TO BE SURE THERE'S STILL MUCH TO BE SAID FOR THE RARE FIRM THAT OFFERS LOW FEES AND HIGH QUALITY AS SOME SMALLER SHOPS AND SPINOFFS FROM LARGER FIRMS HAVE BEEN ABLE TO DO BUT SOME CONSULTANTS PREDICT THAT U. S. F. AND G'S CONTRARIAN STRATEGY MAY BE THE NEXT NEW WAVE IT'S BOTH UNUSUAL AND ENLIGHTENED SAYS JOEL HENNING A SENIOR VICE PRESIDENT OF THE LEGAL CONSULTING FIRM HILDEBRANDT INCORPORATED SOMERVILLE N. J. QUOTE IT'S REALLY ABOUT TIME THAT GENERAL COUNSEL STOP GOING THROUGH ALL THIS GAME PLAYING WITH DISCOUNTS AND START FOCUSING ON THE LEGAL FUNCTION WHICH IS TO PROTECT THE COMPANY'S INTERESTS QUOTE A FORMER PURCHASING AGENT FOR PHILIP MORRIS COMPANIES PLEADED GUILTY IN FEDERAL COURT HERE TO CHARGES OF BID RIGGING AND TAX EVASION FOR FAILING TO REPORT AT LEAST ONE MILLION DOLLARS IN BRIBES HE RECEIVED FROM A PHILIP MORRIS SUPPLIER THE JUSTICE DEPARTMENT SAID LOUIS T. CAPPELLI AGREED TO DEPOSIT TWO MILLION DOLLARS IN AN ESCROW ACCOUNT TO COVER POSSIBLE FINES MR. CAPPELLI OF GARDEN CITY N. Y. COULD NOT BE REACHED FOR COMMENT THE INVESTIGATION WAS PROMPTED BY INFORMATION SUPPLIED BY PHILIP MORRIS WHICH UNCOVERED THE SCHEME IN NINETEEN NINETY ONE AND FIRED MR. CAPPELLI AND ANOTHER EMPLOYEE PHILIP MORRIS THEN TURNED ITS INFORMATION OVER THE JUSTICE DEPARTMENT THE GOVERNMENT CHARGED MR. CAPPELLI WITH ACCEPTING BRIBES TO AWARD CONTRACTS FOR MAKING ADVERTISING DISPLAY STANDS POSTERS AND COUNTER CARDS TO A PARTICULAR SUPPLIER THE SCHEME ALLEGEDLY BEGAN IN THE LATE NINETEEN SEVENTIES PEOPLE FAMILIAR WITH THE CASE SAID THE INVESTIGATION IS CONTINUING AND IS FOCUSING ON THE OUTSIDE VENDORS THAT SET UP THE ALLEGED SCHEME WITH MR. CAPPELLI HOTEL COMPANIES' FOURTH QUARTER EARNINGS WILL PROBABLY JUSTIFY THE MARKET'S RECENT OPTIMISM FOR THE LODGING INDUSTRY ANALYSTS SAID ANALYSTS ATTRIBUTE THEIR OPTIMISTIC VIEWS TO THE ECONOMY AND HIGHER OCCUPANCY AND ROOM RATES AS THE INDUSTRY CONTINUES TO RECOVER FROM A DISMAL PERIOD OF NINETEEN NINETY AND NINETEEN NINETY ONE QUOTE MY READING WAS THAT BUSINESS WAS GOOD QUOTE IN THE QUARTER SAID JOSEPH DOYLE AN ANALYST AT SMITH BARNEY SHEARSON INCORPORATED OCCUPANCY WAS UP ONE PERCENT TO TWO PERCENT ROOM PRICES WERE NOT STRONG BUT LOOKING BETTER SMITH TRAVEL RESEARCH OF NASHVILLE TENNESSEE SAID IT EXPECTS THE INDUSTRY'S AVERAGE OCCUPANCY RATES WERE SIXTY THREE POINT SEVEN PERCENT IN NINETEEN NINETY THREE UP FROM SIXTY ONE POINT SEVEN PERCENT IN NINETEEN NINETY TWO PKF CONSULTING WHICH TRACKS THE HOTEL INDUSTRY SEES INDUSTRYWIDE REVENUE AND PROFITS INCREASING THREE POINT TWO PERCENT IN NINETEEN NINETY THREE FOR NINETEEN NINETY FOUR THE CONSULTING FIRM FORECASTS REVENUE WILL RISE FOUR POINT FIVE PERCENT AND PROFITS WILL GAIN FIVE POINT NINE PERCENT BUT PKF ADDED THAT BECAUSE MANY HOTELS CAN'T REDUCE EXPENSES FURTHER THEY WON'T BE ABLE TO IMPROVE OPERATING PROFIT MARGINS AS THEY DID IN NINETEEN NINETY TWO WHEN MARGINS WIDENED TO TWENTY ONE POINT SEVEN PERCENT FROM TWENTY POINT SIX PERCENT IN NINETEEN NINETY ONE ANALYSTS SAID THE ECONOMY LINE HOTELS HAVE RECOVERED THE QUICKEST FROM THE RECESSION THE DEMAND FOR LESS EXPENSIVE ROOMS IS STRONG AND THE ECONOMY HOTELS HAVE MORE FLEXIBILITY TO RAISE THEIR RATES ACCORDING TO MICHAEL MUELLER AN ANALYST AT MONTGOMERY SECURITIES LARGER COMPANIES SUCH AS MARRIOTT INTERNATIONAL INCORPORATED AND HOSPITALITY FRANCHISE SYSTEMS INCORPORATED ARE ALSO ENJOYING MORE DEMAND FOR THEIR FRANCHISE SERVICES THE STOCKS OF LEADING PUBLICLY TRADED COMPANIES WITH HOTEL BUSINESSES HOSPITALITY FRANCHISE MARRIOTT LA QUINTA INNS INCORPORATED AND HILTON HOTELS CORPORATION ALL HIT FIFTY TWO WEEK HIGHS IN LATE DECEMBER HOSPITALITY FRANCHISE SAID IT EXPECTS TO REPORT FOURTH QUARTER EARNINGS OF TWENTY FIVE CENTS A SHARE MORE THAN DOUBLE YEAR EARLIER EARNINGS OF TWELVE CENTS A SHARE THE COMPANY HOLDS THE DAYS INN HOWARD JOHNSON SUPER EIGHT PARK INN AND RAMADA BRANDS MR. MUELLER ATTRIBUTED THE EXPECTED RISE IN HOSPITALITY FRANCHISE'S EARNINGS TO THE COMPANY'S ACQUISITIONS IT BOUGHT SUPER EIGHT IN APRIL AND PARK INN IN JUNE MR. MUELLER ALSO CITED THE COMPANY'S REVENUE FROM PREFERRED VENDOR CONTRACTS WHICH HE SEES PRODUCING ABOUT SIX POINT FIVE MILLION DOLLARS IN ANNUAL REVENUE THE LATEST VENDOR CONTRACT WAS SIGNED IN SEPTEMBER WITH PEPSICO INCORPORATED'S PIZZA HUT ALLOWING PIZZA HUT TO DELIVER PIZZAS TO HOSPITALITY FRANCHISE'S HOTELS JOHN ROHS AN ANALYST AT WERTHEIM SCHRODER AND COMPANY ESTIMATES THAT MARRIOTT INTERNATIONAL WILL REPORT EARNINGS OF FORTY FIVE CENTS A SHARE FOR THE QUARTER THE COMPANY WHICH WAS SPLIT FROM HOST MARRIOTT CORPORATION IN OCTOBER HAD PRO FORMA EARNINGS OF THIRTY NINE CENTS A SHARE IN THE YEAR EARLIER QUARTER A SURVEY OF TWO ANALYSTS BY ZACK'S INVESTMENT RESEARCH INCORPORATED YIELDED A MEAN ESTIMATE OF FORTY CENTS A SHARE FOR MARRIOTT'S RECENT QUARTER MR. MUELLER SAID LA QUINTA INNS MEANTIME SHOULD REPORT EARNINGS OF SIXTEEN CENTS A SHARE WHICH MATCHES THE MEAN ESTIMATE OF TWO ANALYSTS SURVEYED BY ZACK'S A YEAR EARLIER THE COMPANY REPORTED NET INCOME OF SEVENTEEN CENTS A SHARE BEFORE A THREE FOR TWO STOCK SPLIT LA QUINTA'S FOURTH QUARTER EARNINGS WERE LIMITED BY THE COMPANY'S REFURBISHING PROGRAM ONCE THEIR REFURBISHING PROGRAM IS COMPLETED THEIR IMPROVEMENT WILL BE DRAMATIC MR. MUELLER SAID JIM SCHMITT OF WESTCOUNTRY FINANCIAL SEES HILTON HOTELS EARNING FIFTY FIVE CENTS A SHARE EXCLUDING ANY EXTRAORDINARY ITEMS THE MEAN ESTIMATE OF EIGHT ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WAS SIXTY THREE CENTS A SHARE THE COMPANY REPORTED EARNINGS OF FIFTY FIVE CENTS A SHARE A YEAR EARLIER MR. SCHMITT SEES BETTER DAYS AHEAD FOR HILTON SOMETIME IN NINETEEN NINETY FIVE AND NINETEEN NINETY SIX ABOUT TWO THIRDS OF HILTON'S REVENUE COMES FROM GAMBLING BUSINESSES WITH THE REMAINING ONE THIRD FROM LODGING THE COMPANY HAS BEEN HURT BY THE NEW CROP OF COMPETITORS IN THE GAMBLING INDUSTRY AND THE SAGGING HOTEL BUSINESS MR. SCHMITT SAID HILTON WILL BE SORELY TESTED IN ITS FIRST QUARTER WHEN IT WILL FACE THE NEW CASINO HOTEL COMPLEXES IN LAS VEGAS LOTUS DEVELOPMENT CORPORATION FINISHED THE YEAR WITH STRONG MOMENTUM BEHIND ITS LATEST ONE TWO THREE SPREADSHEET AND SEVERAL BIG SALES OF ITS SMARTSUITE BUNDLED SOFTWARE PACKAGE EXECUTIVES SAID QUOTE WE'VE SEEN A STRONG SUSTAINABLE QUOTE GAIN OF FIFTEEN TO TWENTY PERCENTAGE POINTS IN MARKET SHARE SINCE THE NEW ONE TWO THREE WAS INTRODUCED SIX MONTHS AGO SAID JEFFREY BEIR VICE PRESIDENT OF LOTUS'S SPREADSHEET UNIT OPTIMISM ABOUT FOURTH QUARTER SALES AND NEW PRODUCTS HAS HELPED FUEL A RALLY IN LOTUS SHARES THE STOCK WHICH ROSE THREE DOLLARS WEDNESDAY CLOSED YESTERDAY AT FIFTY EIGHT POINT ONE TWO FIVE DOLLARS A SHARE UP ONE POINT ONE TWO FIVE DOLLARS IN TRADING ON THE NASDAQ STOCK MARKET AMONG FOURTH QUARTER SALES WAS A MARINE CORPS PURCHASE OF TWENTY THOUSAND UNITS OF SMARTSUITE AND A DECISION BY MOBIL CORPORATION TO STICK WITH LOTUS ONE TWO THREE AFTER AN EVALUATION OF MICROSOFT CORPORATION'S EXCEL PRODUCT MR. BEIR SAID ONE TWO THREE OVERTOOK EXCEL IN SINGLE COPY SALES IN THE FOURTH QUARTER BUT HE SAID THE PROGRAM STILL LAGS EXCEL IN OVERALL WINDOWS MARKET SHARE WHEN SUITE SALES ARE FACTORED IN BECAUSE OF THE STRENGTH OF MICROSOFT'S OFFICE SOFTWARE PACKAGE IN OVERALL SALES MR. BEIR ESTIMATES THAT ONE TWO THREE HAS RISEN TO ABOUT FORTY PERCENT OF THE WINDOWS MARKET BEHIND EXCEL AT ABOUT FIFTY PERCENT OF THE MARKET MICROSOFT'S OFFICE SUITE IS STILL THE MARKET LEADER SAID RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS AND COMPANY BUT LOTUS HAS BECOME THE ONLY OTHER MAJOR PLAYER AND BOTH ARE RAPIDLY GAINING SHARE AT THE EXPENSE OF THIRD PLACE BORLAND INTERNATIONAL INCORPORATED HE SAID NEW YORK'S COMMODITY EXCHANGE BEST KNOWN FOR ITS PRECIOUS METAL FUTURES CONTRACTS SAID IT WOULD DEFER ITS ANNUAL ELECTION OF DIRECTORS UNTIL THE CONCLUSION OF ITS MERGER TALKS WITH THE NEW YORK MERCANTILE EXCHANGE THE NYMEX HAS PROPOSED ACQUIRING THE COMEX TERMS CALL FOR NYMEX TO PAY THIRTY FIVE MILLION DOLLARS WHICH WOULD BE DIVIDED AMONG COMEX MEMBERS COMEX TRADERS ALSO WOULD GET FIFTEEN MILLION DOLLARS IN COMPENSATION FROM THEIR EXCHANGE'S OWN REVENUES CURRENT COMEX DIRECTORS AND MEMBERS OF BOTH THE COMEX AND NYMEX ARE EXPECTED TO VOTE ON THE PROPOSAL IN COMING WEEKS INDONESIA'S NEW BUDGET CALLS FOR A TINY RISE IN SPENDING AND A BIG LEAP IN EXPECTATIONS THAT THE PRIMARY ENGINE OF GROWTH WILL BE PRIVATE NON OIL BUSINESS THE DRAFT BUDGET FOR THE YEAR BEGINNING APRIL FIRST PRESENTED TO PARLIAMENT BY PRESIDENT SUHARTO KEEPS A FIRM GRIP ON EXPENDITURES WHILE AIMING FOR A HEFTY INCREASE IN TAX COLLECTION INDONESIA IS COUNTING ON RECEIVING ABOUT FOUR POINT EIGHT BILLION DOLLARS IN FOREIGN AID THAT'S A FOUR POINT EIGHT PERCENT INCREASE FROM THE AMOUNT BUDGETED FOR THE CURRENT YEAR THOUGH IN THE COMING YEAR FOREIGN AID ACCOUNTS FOR A SLIGHTLY SMALLER PERCENTAGE OF TOTAL REVENUE FOURTEEN POINT FOUR PERCENT DOWN FROM FIFTEEN PERCENT THE BUDGET TRADITIONALLY APPROVED WITHOUT CHANGES SETS BOTH TOTAL SPENDING AND REVENUE AT SIXTY NINE POINT SEVEN FIVE TRILLION RUPIAH THIRTY THREE POINT OH TWO BILLION DOLLARS THAT'S TWELVE PERCENT ABOVE THE LEVEL APPROVED FOR THE CURRENT YEAR BUT REPRESENTS LITTLE REAL GROWTH AS ANNUAL INFLATION IS NEARLY TEN PERCENT THE BUDGET DRAFT CONFIRMS THAT THE COUNTRY HAS BROADENED ITS BASE TO COPE WITH A DROP IN OIL EXPORT INCOME WHILE LOW WORLD OIL PRICES NOW AROUND THIRTEEN DOLLARS A BARREL CONTRIBUTED TO THE DECISION TO KEEP A TIGHT LID ON SPENDING THE DRAFT SHOWS HOW SMALL A ROLE OIL PLAYS ONLY ABOUT TWENTY TWO PERCENT OF DOMESTIC REVENUE WILL COME FROM OIL AND GAS COMPARED WITH NEARLY EIGHTY PERCENT A DECADE AGO IT ALSO SHOWS THAT TECHNOCRATS RETAIN A STRONG HAND IN MAKING POLICY WHEN MR. SUHARTO APPOINTED A NEW CABINET LAST MARCH THERE WERE CONCERNS THAT TECHNOCRATS HAD LOST GROUND TO A SCHOOL OF MINISTERS CALLED THE QUOTE NATIONALISTS QUOTE WHO FAVOR BIG STATE SPENDING THE REALISTIC AND CAUTIOUS DRAFT BUDGET INDICATES THAT TECHNOCRATS ARE VERY MUCH IN CONTROL SAID HADI SOESASTRO EXECUTIVE DIRECTOR OF THE PRIVATE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES THE DRAFT ALSO INDICATES THE NATION IS DEPENDING ON PRIVATE BUSINESS WHICH GENERALLY EXPECTS A GOOD NINETEEN NINETY FOUR TO SPUR GROWTH TYSON FOODS INCORPORATED ACQUIRED GORGES FOODSERVICE INCORPORATED HARLINGEN TEXAS TERMS WEREN'T DISCLOSED F. AND M. NATIONAL CORPORATION SIGNED A PRELIMINARY AGREEMENT TO ACQUIRE HALLMARK BANK AND TRUST COMPANY SPRINGFIELD VIRGINIA TERMS WEREN'T DISCLOSED BUT A SPOKESMAN FOR F. AND M. SAID THE PURCHASE WOULD INVOLVE A TAX FREE EXCHANGE OF SHARES GENERAL TIRE INCORPORATED WAS AWARDED A FOUR MILLION DOLLAR ONE YEAR CONTRACT TO SUPPLY TRUCK AND PASSENGER TIRES FOR CALIFORNIA'S STATE OWNED VEHICLES HOLLYWOOD CASINO CORPORATION BOUGHT A DOCKSIDE CASINO IN TUNICA COUNTY MISSISSIPPI FROM SUMMIT CASINOS INTERNATIONAL INCORPORATED FOR FIFTEEN MILLION DOLLARS REYNOLDS AND REYNOLDS COMPANY ACQUIRED FORMCRAFT INCORPORATED A HOUSTON BASED REGIONAL BUSINESS FORMS MANUFACTURER TERMS WEREN'T DISCLOSED JUST AS IN A BAD RELATIONSHIP YOU PAY DEARLY FOR STAYING TOO LONG IN A LOUSY MUTUAL FUND YOU LOSE MONEY YOU LOSE SLEEP YOU FORGET THERE ARE BETTER MUTUAL FUNDS OUT THERE WAITING FOR YOU THINGS ARE UNLIKELY TO CHANGE UNLESS YOU GET OUT OF THE RUT CONSIDER THIS A RECENT ACADEMIC STUDY SAYS THE WORST MUTUAL FUNDS CONSISTENTLY PRODUCE INFERIOR RETURNS QUOTE IF I SAW A FUND IN THE BOTTOM TEN PERCENT IN THE PAST TWO OR THREE YEARS I FOUND THAT THE FUND IS LIKELY TO STAY IN THE BOTTOM TEN PERCENT QUOTE SAYS RAVI SHUKLA A SYRACUSE UNIVERSITY FINANCE PROFESSOR WHO CO WROTE THE STUDY THERE'S MORE MOMENTUM FOR INFERIOR PERFORMANCE THAN SUPERIOR PERFORMANCE ONE WAY TO AVOID GETTING CAUGHT UP IN THAT MOMENTUM IS TO BECOME A SMARTER SHOPPER IN THE MUTUAL FUND SUPERMARKET IT'S EASY TO SEE WHY TOP PERFORMING FUNDS GROW IN SIZE THEY GROW BIGGER GATHER MORE ASSETS SAYS CHARLES TRZCINKA A FINANCE PROFESSOR AT THE STATE UNIVERSITY OF NEW YORK AT BUFFALO AND STUDY CO AUTHOR BUT HOW DO YOU EXPLAIN BADLY PERFORMING FUNDS THAT DON'T LOSE ALL THEIR SHAREHOLDERS WHY DON'T PEOPLE PULL THEIR MONEY OUT THEY DON'T MAKE PROPER COMPARISONS PROFESSOR TRZCINKA SAYS INVESTORS MAKE THE MISTAKE OF COMPARING THE RETURNS OF MUTUAL FUNDS TO OTHER SAVINGS VEHICLES SUCH AS CERTIFICATES OF DEPOSIT PROFESSOR TRZCINKA SAYS INSTEAD THEY SHOULD STACK UP MUTUAL FUND RETURNS TO MORE APPROPRIATE BENCHMARKS SUCH AS THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX WITH THE RIGHT COMPARISONS AT HAND IT'S EASIER TO DITCH THE LOSERS AND SWITCH TO MORE PROMISING FUNDS HOW DO YOU CHOOSE AMONG THOUSANDS OF FUNDS MOST DON'T THEY LEAVE IT UP TO THEIR BROKER QUOTE PROFESSOR TRZCINKA SAYS THEY NEED TO PUT A LITTLE MORE INTO THEIR DECISIONMAKING PROFS TRZCINKA AND SHUKLA SPENT NEARLY TWO YEARS COMPARING THE PERFORMANCES OF ONE THOUSAND THREE HUNDRED EIGHTY SEVEN OPEN END STOCK AND BOND FUNDS FROM NINETEEN SEVENTY NINE TO NINETEEN EIGHTY NINE TO THE RETURNS OF THE S. AND P. FIVE HUNDRED AND U. S. TREASURY BILLS LOUSY STOCK PICKING POOR MARKET TIMING HIGH EXPENSES AND FREQUENT PORTFOLIO TURNOVER THAT RESULTS IN EXPENSIVE BROKER COMMISSIONS WERE CITED AS SOME OF THE REASONS FOR BOGGING DOWN PERFORMANCE SOME FUNDS CAN THANK BACK END LOADS FOR THEIR CONTINUED EXISTENCE THESE FUNDS CHARGE COMMISSIONS FOR REDEEMING THEIR SHARES IT'S POSSIBLE PEOPLE SAY TO THEMSELVES THE FUND WILL DO BETTER THEN WE CAN GET OUT SO THEY STAY IN UNTIL THEN BECAUSE THEY DON'T WANT TO GET THESE CHARGES PROFESSOR SHUKLA SAYS IF NOT FOR THOSE LOADS THESE FUNDS WOULD HAVE DISAPPEARED INVESTORS NEED TO BE CAREFUL WHERE THEY PUT THEIR MONEY THERE ARE TONS OF DOGS OUT THERE AND NOT JUST THE FORTY FOUR WALL STREETS AND STEADMAN SAYS JONATHAN POND A WATERTOWN MASSACHUSETTS FINANCIAL PLANNER AND AUTHOR REFERRING TO TWO FUND GROUPS INFAMOUS FOR HAVING HAD POORLY PERFORMING FUNDS BUT YOU DON'T HAVE TO STICK WITH A POOR FUND AND YOU DON'T HAVE TO BUY INTO ONE QUOTE IF YOU DO YOUR HOMEWORK BEFORE BUYING A FUND IT'S NOT A RANDOM CHANCE IT WILL TURN INTO AN INFERIOR ONE QUOTE MR. POND SAYS MR. POND'S OWN RECENT RESEARCH FOUND ONE HUNDRED FUNDS THAT CONSISTENTLY LANDED IN THE TOP TWENTY PERCENT IN THEIR CATEGORY IN BOTH OF THE PAST TWO UP AND DOWN MARKETS INDEED PROFS SHUKLA AND TRZCINKA NAMED TWENTY FOUR FUNDS THAT HAVE BEEN CONSISTENTLY SUPERIOR INCLUDING FIDELITY MAGELLAN NICHOLAS FUND LINDNER DIVIDEND AND PHOENIX BALANCED OF COURSE TOP PERFORMING FUNDS CAN STILL FALL TEMPORARILY INTO THE INVESTMENT DOGHOUSE BUT THEY'RE UNLIKELY TO REMAIN THERE FOREVER THE ACADEMIC STUDY RECOMMENDED STICKING WITH LARGE FUNDS DESPITE A COMMON BELIEF THAT SUCH FUNDS ARE SLUGGISH AND INFLEXIBLE THE TWO PROFESSORS CONTEND THAT THE AVERAGE SUPERIOR FUND HAS ONE POINT ONE BILLION DOLLARS IN ASSETS WHILE A TYPICAL LAGGARD HAS ONE HUNDRED TWENTY NINE MILLION DOLLARS IN ASSETS A LARGE FUND CAN MOVE THE MARKET AND THAT BRINGS A LITTLE PERFORMANCE BIAS TO THE FUND PROFESSOR SHUKLA SAYS FUND GROUPS MAKE SURE THEIR STAR FUNDS TURN IN SOLID PERFORMANCES WHICH MEANS THEY WON'T TAKE UNNECESSARY RISKS SAID DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER ASSETS FLOW TO THE BETTER FUNDS MR. PHILLIPS SAYS THE LARGER FUNDS TAKE GREAT PAINS TO MAKE SURE THEY DON'T GIVE PEOPLE A REASON TO SELL BESIDES FAVORING LARGE FUNDS FUND EXPERTS OFFER SOME OTHER ADVICE FOR STAYING AWAY FROM MUTUAL FUND TURKEYS CHECK FOR OUTRAGEOUS FEES AVERAGE ANNUAL EXPENSES ARE ABOUT ONE POINT FIVE PERCENT FOR STOCK FUNDS ONE PERCENT FOR TAXABLE BOND FUNDS AND ZERO POINT SEVEN FIVE PERCENT FOR MUNICIPAL BOND FUNDS ACCORDING TO MORNINGSTAR PICK A MANAGER WITH A GOOD REPUTATION SEE IF THE MANAGER OF YOUR FAVORITE FUND IS STILL AT THE HELM STICK WITH A WELL KNOWN FUND FAMILY AMONG MR. POND'S GUIDELINES FOR INVESTORS DECIDE HOW MUCH TO INVEST IN STOCKS AND BONDS THEN CALCULATE HOW MUCH GOES INTO EACH STOCK AND BOND FUND CATEGORY INTERNATIONAL GROWTH AND INCOME JUNK BONDS ET CETERA IF YOU'RE UNDECIDED DAVID WRIGHT A SANTA MONICA CALIFORNIA FINANCIAL ADVISER RECOMMENDS FIDELITY ASSET MANAGER WHICH DIVERSIFIES ITS ASSETS AMONG STOCKS AND BONDS HE ALSO LIKES G. T. GLOBAL HIGH INCOME A BOND FUND WITH LOW VOLATILITY AND VANGUARD SLASH WELLESLEY INCOME FOR ITS SOLID LONG TERM TRACK RECORD DAVID PETERSEN A SILVER SPRING MARYLAND FINANCIAL PLANNER PUTS A HIGH PREMIUM ON A FUND MANAGER WHAT MAKES THINGS WORK IS THE INDIVIDUAL MANAGING THE FUND HE SAYS AMONG HIS FAVORITES ARE AMERICAN HERITAGE'S HEIKO THIEME AND OAKMARK INTERNATIONAL'S DAVID HERRO PROFESSOR SHUKLA SAYS A MANAGER'S EDUCATIONAL BACKGROUND MAY BE KEY TO A FUND'S PERFORMANCE A SEPARATE STUDY OF HIS SHOWS THAT MUTUAL FUNDS RUN BY CHARTERED FINANCIAL ANALYSTS POSTED BETTER RETURNS THAN THOSE WITHOUT THE CERTIFICATION CHARTERED FINANCIAL ANALYSTS RECEIVE THIS PROFESSIONAL RANKING AFTER EXTENSIVE EXAMINATIONS AND EXPERIENCE AS ANALYSTS JOHN BUTLER THE RECENTLY RETIRED PRESIDENT OF INVESCO FUNDS GROUP SAYS STAYING WITH A WELL KNOWN FAMILY OF FUNDS MAKES IT EASIER TO REDEEM SHARES FROM ONE FUND AND SWITCH INTO ANOTHER TAIWAN'S CENTRAL BANK CONCERNED ABOUT THE RECENT APPRECIATION OF THE NEW TAIWAN DOLLAR IS SLOWING THE FLOW OF FOREIGN CAPITAL INTO THE COUNTRY'S BOOMING STOCK MARKET IT IS A POLICY SHIFT THAT WON'T SIT WELL WITH FOREIGN INVESTORS WHO ARE EAGER TO GET A PIECE OF THE TAIWAN STOCK MARKET'S SKYROCKETING RALLY ON WEDNESDAY THE FIRST TRADING DAY OF NINETEEN NINETY FOUR THE MARKET'S WEIGHTED INDEX SHOT UP THREE HUNDRED FORTY SIX POINT TWO EIGHT POINTS OR FIVE POINT SEVEN PERCENT TO SIX THOUSAND FOUR HUNDRED SIXTEEN POINT EIGHT FOUR TRADING SLOWED THURSDAY WITH THE TAIWAN STOCK EXCHANGE WEIGHTED INDEX UP THIRTY SEVEN POINT SIX EIGHT POINTS TO CLOSE AT SIX THOUSAND FOUR HUNDRED FIFTY FOUR POINT FIVE TWO THE HIGHEST LEVEL SINCE JUNE SEVENTH NINETEEN NINETY JUST TWO MONTHS AGO THE CENTRAL BANK OPENED THE FLOODGATES AND ALLOWED OVERSEAS INSTITUTIONAL INVESTORS UNPRECEDENTED ACCESS TO THE MARKET SINCE EARLY NOVEMBER REGULATORS HERE HAVE AUTHORIZED ABOUT ONE POINT SIX BILLION U. S. DOLLARS OF PLANNED INVESTMENTS OF FOREIGN CAPITAL IN TAIWANESE SECURITIES THAT MONEY HAS HELPED SPUR THE CURRENT RALLY WHICH HAS BOOSTED SHARE PRICES SIXTY PERCENT IN THE PAST TWO MONTHS BUT THE INCREASED FLOW OF CAPITAL INTO TAIWAN DURING DECEMBER ALSO HELPED PUSH THE NEW TAIWAN DOLLAR MODESTLY HIGHER THAT BROUGHT AN IMMEDIATE REACTION FROM THE CENTRAL BANK WHOSE PRIMARY CONCERN IS TO KEEP THE CURRENCY STABLE AND MAINTAIN THE COMPETITIVENESS OF TAIWANESE EXPORTS BROKERS SUGGEST THAT THE CENTRAL BANK ALSO MAY BE WORRIED ABOUT THE RE EMERGENCE OF SPECULATIVE TRADING IN THE STOCK MARKET WHICH RECENTLY HAS FEVERISHLY FOLLOWED FOREIGNERS' INVESTMENT STRATEGIES BY SLOWING THE FLOW OF FOREIGN MONEY INTO THE MARKET AUTHORITIES MAY BE HOPING TO COOL THE RALLY CENTRAL BANK OFFICIALS LAST WEEKEND INDICATED THROUGH THE LOCAL PRESS THAT THEY ARE ADOPTING A MORE RESTRICTIVE POLICY TOWARD FOREIGN INVESTMENT UNDER TAIWAN GOVERNMENT REGULATIONS A TOTAL OF FIVE BILLION U. S. DOLLARS IN FOREIGN CAPITAL MAY BE BROUGHT INTO THE COUNTRY FOR INVESTMENT IN SECURITIES BUT THE MARKET'S RECENT RALLY HAS BROUGHT A TORRENT OF FOREIGN APPLICATIONS THAT WOULD EXCEED THAT CEILING TAIWAN'S SECURITIES AND EXCHANGE COMMISSION IS PUSHING TO RAISE THE CEILING BUT THE LOCAL PRESS SAYS CENTRAL BANK OFFICIALS OPPOSE SUCH A MOVE AT THIS TIME MOREOVER SINCE MID DECEMBER THE CENTRAL BANK HAS BEEN PROCEEDING SLOWLY IN ACTING ON APPLICATIONS RICHARD WERTHEIMER A BROKER WITH BARING SECURITIES TAIWAN LIMITED BELIEVES THAT THE TIGHTER POLICY PROBABLY WILL BE TEMPORARY AND THAT ONCE THE CURRENCY STABILIZES INVESTMENT APPROVALS WILL RESUME QUOTE THE GENERAL TREND OF POLICY IS STILL TO OPEN UP QUOTE HE SAYS THERE'S GOING TO BE A LOT OF PRESSURE ON THE CENTRAL BANK INDEED FOREIGN INVESTORS ARE CLAMORING TO GET INTO THE TAIWAN STOCK MARKET WHICH HAS UNDERPERFORMED MOST OTHER EAST ASIAN MARKETS FOR THE PAST YEAR CURRENTLY EIGHTEEN FOREIGN INSTITUTIONS ARE AWAITING APPROVAL TO INVEST ONE POINT THREE SIX BILLION U. S. DOLLARS IN TAIWAN SOME FUND MANAGERS SAY THAT THE CURRENT DELAY ON INVESTMENT APPLICATIONS RUNS COUNTER TO TAIWAN'S EFFORTS TO INTRODUCE ECONOMIC AND FINANCIAL REFORMS THAT WOULD ENABLE THE COUNTRY TO ENTER THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN THE NEAR FUTURE LIBERALIZATION OF THE FINANCIAL MARKET IS A PREREQUISITE TO ENTERING G. A. T. T. SAYS JAMES HSU PRESIDENT OF FUBON INVESTMENT SERVICES COMPANY A LOCAL FUND MANAGEMENT COMPANY SO WE SHOULD BE MORE GENEROUS IN SPEEDING UP THE PROCESS OF LIBERALIZATION RATHER THAN NOT ALLOWING MORE INVESTMENT A FUBON OVERSEAS SUBSIDIARY HAS APPLIED TO INVEST TWO HUNDRED MILLION U. S. DOLLARS IN TAIWAN IN CONJUNCTION WITH WARDLEY FINANCIAL SERVICES LIMITED OF HONG KONG IN A TELEPHONE INTERVIEW SAMUEL SHIEH THE CENTRAL BANK GOVERNOR SAID IT IS TOO EARLY TO DISCUSS WHETHER THE INVESTMENT CEILING WILL BE RAISED BUT HE ASSERTED THAT THE GOVERNMENT IS COMMITTED TO ALLOWING MORE FOREIGN INVESTMENT IN TAIWAN'S MARKET MR. SHIEH ACKNOWLEDGED THAT THE CENTRAL BANK WAS CONCERNED ABOUT THE CURRENCY'S APPRECIATION DURING DECEMBER ALONG WITH THE IMPACT ON INTEREST RATES AND MONEY SUPPLY OUR FOREIGN EXCHANGE MARKET IS VERY SHALLOW HE SAID NOTING THAT TURNOVER OFTEN RANGES BETWEEN FIFTY MILLION U. S. DOLLARS AND ONE HUNDRED MILLION U. S. DOLLARS A DAY SO IF WE SUDDENLY HAVE FIFTY MILLION U. S. DOLLARS COME IN IN A DAY THERE IS IMMEDIATE APPRECIATION THIS IS VERY DIFFICULT QUOTE THE S. E. C. HAS BEEN PUSHING TO GET THE CENTRAL BANK TO AGREE TO AN INCREASE IN THE INVESTMENT CEILING TO SEVEN POINT FIVE BILLION U. S. DOLLARS OR TEN BILLION U. S. DOLLARS BUT GOVERNMENT OFFICIALS SAY THAT SO FAR THE CENTRAL BANK HAS HAD THE UPPER HAND IN THE DEBATE A MINISTRY OF FINANCE OFFICIAL SAID THAT THE FINANCE MINISTER LIN CHEN KUO SO FAR HAS REFUSED TO MAKE A FORMAL REQUEST TO THE CENTRAL BANK THAT THE CEILING BE RAISED HE SAID MR. LIN HAS URGED THE S. E. C. TO CONTINUE NEGOTIATING WITH THE CENTRAL BANK AND TO WAIT FOR FOREIGN INVESTMENTS TO HIT THE FIVE BILLION U. S. DOLLAR LIMIT ONE HITCH THE S. E. C. AND THE CENTRAL BANK CAN'T EVEN AGREE ON THE TECHNICALITIES OF HOW TO DEFINE WHEN THAT LIMIT IS REACHED THE PHILADELPHIA STOCK EXCHANGE SAID IT PLANS TO LAUNCH TRADING IN THREE NEW PRODUCTS BASED ON INDEX OPTIONS EARLY THIS YEAR PENDING APPROVAL BY THE SECURITIES AND EXCHANGE COMMISSION THE EXCHANGE SAID IT PLANS TO LIST THE BIG CAP INDEX COMPRISING FIFTY OF THE LARGEST STOCKS PUBLICLY TRADED IN THE U. S. THE SEMICONDUCTOR INDEX COMPRISING THE STOCKS OF SIXTEEN SEMICONDUCTOR DEVELOPERS MANUFACTURERS AND DISTRIBUTORS AND THE BABY BELL INDEX MADE UP OF THE SHARES OF AMERICAN TELEPHONE AND TELEGRAPH COMPANY AND THE REGIONAL BABY BELL TELEPHONE COMPANIES AN INDEX OPTION IS THE RIGHT BUT NOT THE OBLIGATION TO EITHER BUY OR SELL THE VALUE OF AN INDEX AT A PREDETERMINED PRICE ON OR BEFORE A FIXED EXPIRATION DATE CONSOLIDATED TECHNOLOGY GROUP LIMITED SAID IT ACQUIRED AVIONICS RESEARCH CORPORATION A PRIVATELY HELD PROVIDER OF TECHNICAL PERSONNEL TERMS WEREN'T DISCLOSED CONSOLIDATED A COMPUTER AND OPTICAL RELATED SERVICES COMPANY SAID THE ACQUISITION CONSISTS OF TWO RELATED COMPANIES BASED IN NEW YORK AND FLORIDA MONEY MARKET MUTUAL FUND ASSETS CLIMBED BY FOUR POINT NINE ONE BILLION DOLLARS TO FIVE HUNDRED EIGHTY SEVEN POINT EIGHT SEVEN BILLION DOLLARS FROM A REVISED FIVE HUNDRED EIGHTY TWO POINT NINE SIX BILLION DOLLARS FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF SIX HUNDRED FIFTY ONE RETAIL MONEY MARKET MUTUAL FUNDS GREW BY FOUR POINT EIGHT TWO BILLION DOLLARS TO THREE HUNDRED NINETY SEVEN POINT NINE NINE BILLION DOLLARS THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF FOUR HUNDRED FOUR TAXABLE MONEY MARKET FUNDS ROSE BY ONE POINT SEVEN EIGHT BILLION DOLLARS TO THREE HUNDRED EIGHT POINT OH THREE BILLION DOLLARS ASSETS OF TWO HUNDRED FORTY SEVEN RETAIL TAX EXEMPT FUNDS ROSE BY THREE POINT OH THREE BILLION DOLLARS TO EIGHTY NINE POINT NINE SIX BILLION DOLLARS ASSETS OF THE TWO HUNDRED EIGHTY INSTITUTIONAL MONEY MARKET FUNDS INCREASED BY NINETY SIX POINT FIVE MILLION DOLLARS TO ONE HUNDRED EIGHTY NINE POINT EIGHT EIGHT BILLION DOLLARS AMONG INSTITUTIONAL FUNDS THE ASSETS OF TWO HUNDRED TWENTY SIX TAXABLE MONEY MARKET FUNDS FELL BY ONE POINT TWO TWO BILLION DOLLARS TO ONE HUNDRED SIXTY SIX POINT SIX FOUR BILLION DOLLARS ASSETS OF FIFTY FOUR TAX EXEMPT FUNDS ROSE BY ONE POINT THREE TWO BILLION DOLLARS TO TWENTY THREE POINT TWO FIVE BILLION DOLLARS STEVEN W. BARNES EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PHOTOGRAPH ALBUM MAKER WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR MR. BARNES THIRTY THREE YEARS OLD SUCCEEDS MALCOLM LLOYD FIFTY FOUR WHO IS LEAVING THE COMPANY TO PURSUE OTHER INTERESTS HOLSON BURNES SAID IN A PRESS STATEMENT DEBORAH CARREAU THIRTY SIX VICE PRESIDENT CONTROLLER WAS NAMED VICE PRESIDENT FINANCE AND WILL ASSUME MANY OF MR. BARNES'S FORMER FINANCIAL DUTIES THE COMPANY SAID HOLSON BURNES ALSO SAID IT EXPECTS NINETEEN NINETY THREE FOURTH QUARTER SALES TO BE IN THE FORTY THREE MILLION DOLLARS TO FORTY FOUR MILLION DOLLAR RANGE WHICH IT SAID REPRESENTS A THIRTEEN PERCENT TO FIFTEEN PERCENT INCREASE OVER THE YEAR EARLIER FOURTH QUARTER WAVES OF AMERICAN BUSINESS PEOPLE LOBBIED HARD FOR THE GLOBAL TRADE TREATY THAT FINALLY EMERGED LAST MONTH IN GENEVA NOW THAT THEY'VE GOT IT WILL IT AFFECT HOW THEY OPERATE IN THE REAL WORLD OF INTERNATIONAL COMMERCE ABSOLUTELY AND GENERALLY FOR THE GOOD THOUGH SOMETIMES IN ENTIRELY NEW WAYS THAT'S BECAUSE THE NEW TREATY FOR ALL ITS ERRORS AND OMISSIONS GOES FAR BEYOND ITS PREDECESSORS TO REFLECT CHANGES IN THE GLOBAL ECONOMY FOR THE FIRST TIME IT BRINGS COMMERCIAL SERVICES AGRICULTURE AND INTANGIBLES LIKE SOFTWARE INTO THE FRAMEWORK OF GLOBAL TRADE RULES OVER TIME THE DEAL WILL LEAD TO RULES FOR THESE NEW AREAS OF ECONOMIC ACTIVITY COMPLETE WITH A WORLD TRADING ORGANIZATION TO ENFORCE THEM QUOTE IT'S A VERY CHANGED WORLD THE RULE BASED ASPECT OF TRADE WILL BE VASTLY EXPANDED SAYS CALMAN COHEN A LOBBYIST WHO REPRESENTS U. S. MULTINATIONALS ON TRADE ISSUES ONLY THE BROAD OUTLINE WAS SIGNED DECEMBER FIFTEENTH UNDER AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE ONE HUNDRED SIXTEEN MEMBER ORGANIZATION THAT OVERSEES MOST WORLD COMMERCE ITS COMPLEX CLAUSES WON'T START TO TAKE HOLD UNTIL NINETEEN NINETY FIVE IMPORTANT DETAILS ARE STILL BEING ADDED AND UNFINISHED HAGGLING ON CERTAIN KEY TOPICS SUCH AS TELECOMMUNICATIONS AND FINANCIAL SERVICES COULD LAST ANOTHER TWO YEARS THE DOCUMENT IS NEITHER COMPLETE NOR PERFECT YET AFTER A FEW WEEKS OF REFLECTION MANY BUSINESSMEN CONCLUDE ITS TERMS CAN ALTER SIGNIFICANTLY THE CONDUCT OF INTERNATIONAL COMMERCE AS THEY PHASE IN PAST AGREEMENTS BASICALLY CUT TARIFFS OR ABOLISHED OTHER IMPEDIMENTS TO INDUSTRIAL TRADE BUT THIS ONE RECOGNIZES HOW MUCH THE GLOBAL ECONOMY HAS EVOLVED BEYOND THE OLD CONCEPT OF PUTTING THINGS IN BOXES AND SHIPPING THEM SOMEWHERE THIS AGREEMENT MAKES TRADE AND INVESTMENT MORE OPEN AND TRANSPARENT AND MUTUALLY ADVANTAGEOUS AND THAT'S ALWAYS A PLEASURE SAYS JACK EBY A SENIOR STRATEGIST FOR FORD MOTOR COMPANY FOR EXAMPLE THE RULES ON FOREIGN INVESTMENT SAY EXECUTIVES WILL PERMIT MORE RATIONAL ECONOMIC CHOICES ABOUT WHERE TO PUT FACTORIES SOME EVEN TALK OF BRINGING BACK JOBS TO THE U. S. RATHER THAN SENDING MORE PRODUCTION OVERSEAS THAT'S BECAUSE SOME OFFSHORE PLANTS WERE BUILT UNDER LAWS REQUIRING COMPANIES TO MANUFACTURE LOCALLY IN ORDER TO SELL LOCALLY THE NEW RULES MAKE IT HARDER FOR GOVERNMENTS TO ENFORCE SUCH DEMANDS FORD HONEYWELL INCORPORATED AND HEWLETT PACKARD COMPANY ARE AMONG THOSE THAT MIGHT ADJUST THEIR MANUFACTURING NETWORKS ACCORDINGLY INCLUDING GREATER USE OF THEIR U. S. PLANTS FOR EXPORTS A DIVERSE GROUP OF BUSINESSES WELCOME THE TREATY'S NEW PROTECTION FOR INTELLECTUAL PROPERTY MEANING A COMPANY WON'T SEE PROPRIETARY ITEMS SO EASILY RIPPED OFF IT'S NOT SURPRISING THAT A HIGH TECH COMPANY LIKE HEWLETT PACKARD LIKES HOW THE TREATY RAISES THE THRESHOLD LEVEL OF PROTECTION AS A COMPANY EXECUTIVE PUTS IT YET THE ACCOUNTING FIRM ARTHUR ANDERSEN AND COMPANY FEELS THE SAME THESE RULES WILL HELP IT GUARD FOR EXAMPLE SOFTWARE USED IN TRAINING COURSES SUCH RULES SHOULD MAKE DOING BUSINESS ABROAD SAFER AND EASIER IF THEY'RE ENFORCED ALWAYS A PROBLEM HOWEVER THE NEW TRADING ORGANIZATION IS SUPPOSED TO PUNISH CHRONIC CHEATERS THE EFFORT TO ADD SERVICE INDUSTRIES MAY BE THE MOST IMPORTANT DEPARTURE FROM PAST AGREEMENTS BUT IT ISN'T OVER IF FINANCIAL SERVICES ARE INCLUDED MORE COMPANIES WILL EXPAND ABROAD IN NEW FIELDS FORD FOR EXAMPLE WANTS TO FINANCE DELIVERIES TO BOTH DEALERS AND CUSTOMERS WORLD WIDE SOMETHING NOW IMPOSSIBLE IN MANY COUNTRIES SUCH THINGS CAN MEAN A LOT TO THE U. S. ECONOMY SERVICE EXPORTS LAST YEAR WERE ONE HUNDRED SIXTY BILLION DOLLARS WITH A SIXTY BILLION DOLLAR TRADE SURPLUS CONTROVERSIAL BUT GENERALLY WELCOME ARE NEW RULES ABOUT HOW TO GOVERN THE PRACTICE OF DUMPING OR SELLING AT UNFAIRLY LOW PRICES SOME FORTY NATIONS HAVE ANTIDUMPING LAWS AND SOME INCLUDING THE U. S. USE THEM TO PROTECT DOMESTIC INDUSTRIES FROM OVERSEAS RIVALS THAT CAN'T BE STOPPED BY FAIR MARKET MEANS TO SOME DEGREE THE TREATY WILL MAKE SUCH LAWS LESS OPEN TO ABUSE AND CURTAIL PROTECTIONISM YET NOT COMPLETELY ACCORDING TO ONE TRADE SPECIALIST THE U. S. GOT G. A. T. T. NEGOTIATORS TO REVISE THE LEVEL AT WHICH ANTIDUMPING MEASURES CAN BE APPLIED THE INTENDED RESULT MORE PROTECTION FOR AMERICAN STEELMAKERS THE ACCIDENTAL RESULT MORE DIFFICULTY GETTING AMERICAN WHEAT INTO EUROPE UNDER OTHER TREATY TERMS INTENDED TO FREE THAT MARKET COMPANIES LIKE CARGILL INCORPORATED AND CONTINENTAL GRAIN COMPANY ARE SURE TO PROTEST DESPITE SUCH GLITCHES THE GENERAL REACTION REMAINS POSITIVE DOING BUSINESS WILL BE MORE PREDICTABLE AND RELIABLE AND FEW COMPANIES COMPLAIN WHEN RISK IS REDUCED GONE ARE THE DAYS WHEN YOU COULD TALK ABOUT MUTUAL FUNDS WITHOUT MENTIONING THEIR TAX SHELTERED COUSINS VARIABLE ANNUITIES DESPITE THE HANDICAP OF A NAME THAT SOUNDS LIKE A GASTROINTESTINAL DISORDER VARIABLE ANNUITIES ARE SHAPING UP AS THE HOTTEST SELLING INVESTMENT OF THE NINETIES QUOTE THE MARKET IS GROWING AT A RATE THAT MATCHES THE NINETEEN EIGHTIES GROWTH OF MUTUAL FUNDS QUOTE SAYS KURT CERULLI A BOSTON FINANCIAL PRODUCTS CONSULTANT IN NINETEEN NINETY THREE INVESTORS SHOVELED MORE THAN FORTY BILLION DOLLARS INTO VARIABLE ANNUITIES UP FROM TWENTY THREE BILLION DOLLARS IN NINETEEN NINETY TWO SO WHAT ARE THESE FORBIDDINGLY NAMED CREATURES THEY ARE CALLED VARIABLE BECAUSE THEIR RETURNS ZIGZAG UNLIKE THE NEVER CHANGING YIELD OF A FIXED ANNUITY HERE IS A RUNDOWN OF THEIR PLUSES NOTABLY TAX DEFERRAL AND MINUSES FEES FEES FEES IN THE PAST INVESTORS WHO WANTED TO SHELTER EARNINGS ON MUTUAL FUNDS USUALLY WENT ONE OF TWO ROUTES THEY BOUGHT TAX FREE MUNICIPAL BOND FUNDS OR THEY PUT MUTUAL FUNDS INTO AN I. R. A. WHERE EARNINGS COULD GROW TAX DEFERRED NOW MANY ARE TURNING INSTEAD TO VARIABLE ANNUITIES ESPECIALLY IF THEY HAVE A BIG SUM TO SHELTER OR WANT TO TRADE STOCK FUNDS WITHOUT GENERATING AN IMMEDIATE BLIZZARD OF PAPERWORK AND TAXES WHILE VARIABLE ANNUITIES MAY SEEM MYSTERIOUS THEIR TAX ADVANTAGES ARE ALMOST IDENTICAL TO THOSE OF NONDEDUCTIBLE I. R. A.S AS WITH AN I. R. A. INVESTORS CAN OPEN A VARIABLE ANNUITY ACCOUNT AT MANY MUTUAL FUND COMPANIES BROKERAGE FIRMS INSURANCE COMPANIES AND AT MANY BANKS UNLIKE WITH AN I. R. A. THERE IS NO LIMIT ON CONTRIBUTIONS WHEN IT COMES TO INVESTING I. R. A. INVESTORS CAN CHOOSE AMONG THE UNIVERSE OF MUTUAL FUNDS BUT VARIABLE ANNUITY INVESTORS ARE LIMITED TO THE FUNDS OFFERED WITHIN THE VARIABLE ANNUITY ACCOUNT THE AVERAGE NUMBER OFFERED IS SEVEN THEY ALSO HAVE ACCESS TO A C. D. LIKE ACCOUNT THAT PAYS A FIXED RATE OF RETURN WITH VARIABLE ANNUITIES AS WITH I. R. A.S INVESTORS CAN SWITCH THEIR MONEY AMONG THE FUNDS WITHOUT TRIGGERING TAXES AND EARNINGS ARE TAX DEFERRED UNTIL TAKEN OUT WHEN THEY ARE TAXED AS REGULAR INCOME AS WITH AN I. R. A. INVESTORS CAN TAKE THEIR MONEY OUT IN A LUMP SUM AT ANY POINT THEY PAY INCOME TAXES ON THE EARNINGS PLUS A TEN PERCENT PENALTY IF THEY ARE UNDER AGE FIFTY NINE AND ONE HALF OR THEY CAN TAKE A SYSTEMATIC WITHDRAWAL BASED ON THEIR LIFE EXPECTANCY THE INVESTMENT OPTIONS WITHIN VARIABLE ANNUITIES ARE IN ESSENCE A HALF DOZEN OR MORE MUTUAL FUNDS THIS MAY NOT BE APPARENT TO PEOPLE INITIALLY BECAUSE THE VOCABULARY IS DIFFERENT THE WORD MUTUAL FUND BECOMES SUBACCOUNT IN A VARIABLE ANNUITY AND MUTUAL FUND INVESTORS ACQUIRE SHARES WHILE VARIABLE ANNUITY INVESTORS HAVE ACCUMULATION UNITS DON'T COUNT ON SEEING A CHANGE IN THIS TERMINOLOGY SOON THE INDUSTRY ISN'T EAGER FOR TAX HUNGRY REGULATORS TO FOCUS ON HOW OFTEN INVESTORS VIEW THESE PRODUCTS AS TAX SHELTERS RATHER THAN AS THE RETIREMENT SAVINGS PLANS THEY WERE INTENDED TO BE MOREOVER POINTING OUT THE SIMILARITIES TO MUTUAL FUNDS WOULD INVITE INVESTORS TO COMPARE ANNUITIES WITH MUTUAL FUNDS WHICH ARE EASIER TO GET OUT OF AND TYPICALLY LESS EXPENSIVE DESPITE ALL THE GOBBLEDYGOOK THE MECHANICS OF THE SYSTEM ARE ALMOST IDENTICAL TO MUTUAL FUNDS SAYS MR. CERULLI INVESTORS CAN MAKE PERIODIC CONTRIBUTIONS OR PUT IN A LUMP SUM THEY CAN SWITCH FUNDS WITH LIMITS ON FREQUENCY THE MINIMUM INITIAL PURCHASE TYPICALLY RANGES FROM ONE THOUSAND DOLLARS TO FIVE THOUSAND DOLLARS JUST AS WITH MUTUAL FUNDS THE CLOSING PRICES OF THE SECURITIES IN THE FUNDS AT A GIVEN TIME DETERMINE THE VALUE FOR HOLDERS THE OVERALL VALUE OF THE PORTFOLIO DIVIDED BY THE NUMBER OF ACCUMULATION UNITS DETERMINES THE PRICE FOR THE PURCHASE DESPITE THE SIMILARITY TO NONDEDUCTIBLE I. R. A.S AND MUTUAL FUNDS VARIABLE ANNUITIES AREN'T THE SAME AS OWNING MUTUAL FUNDS AND HAVE A FEW KEY DIFFERENCES THAT MAKE THEM UNDESIRABLE FOR MANY INVESTORS FOR ONE THING VARIABLE ANNUITIES ARE LESS EASY TO SHED THAN MUTUAL FUNDS MOST COME WITH SURRENDER CHARGES THAT START AT SEVEN PERCENT AND DECLINE TO ZERO ONLY OVER A PERIOD OF YEARS AND BECAUSE THEY BEHAVE LIKE I. R. A.S IF YOU TAKE MONEY OUT BEFORE AGE FIFTY NINE AND ONE HALF YOU'LL PAY A TEN PERCENT TAX PENALTY IN ADDITION TO INCOME TAXES FURTHERMORE THE TAX ADVANTAGE MAY NOT BE ALL IT'S CRACKED UP TO BE FEW INSURANCE AGENTS OR BROKERS EXPLAIN TO PEOPLE THAT ALL OF THE EARNINGS IN A VARIABLE ANNUITY ARE GOING TO BE TAXED AS INCOME IN CONTRAST CAPITAL GAINS GENERATED IN A MUTUAL FUND ARE TAXED AT THE LOWER TWENTY EIGHT PERCENT CAPITAL GAINS RATE BUT PERHAPS THE CRUCIAL DOWNSIDE TO VARIABLE ANNUITIES IS THE HIGHER FEE LEVEL VARIABLE ANNUITIES HAVE ANNUAL INSURANCE COMPANY FEES THAT AVERAGE ONE POINT TWO SEVEN PERCENT ANNUALLY SOME OF THE NEWER PRODUCTS ARE CHARGING ONE POINT FOUR OH PERCENT OR MORE THIS IS IN ADDITION TO THE ANNUAL INVESTMENT MANAGEMENT FEES WHICH AVERAGE ZERO POINT SEVEN THREE PERCENT FOR U. S. STOCK FUNDS ENSCONCED IN VARIABLE ANNUITIES TOTAL FEES IN VARIABLE ANNUITIES WITH HIGHER THAN AVERAGE FUND AND INSURANCE EXPENSES CAN EASILY TOP TWO POINT FIVE PERCENT A YEAR THOSE FEES CAN BE QUITE A DRAG ON RETURNS IN THE CASE OF A FUND WITH BONDS YIELDING SIX PERCENT FOR INSTANCE A TOTAL OF TWO POINT FIVE PERCENT IN ANNUAL VARIABLE ANNUITY FEES WOULD EAT UP MORE THAN FORTY PERCENT OF THE ANNUAL YIELD SUCH ADDED EXPENSES ERASE THE ADVANTAGE OF THE TAX DEFERRAL FOR AT LEAST A DECADE AND INVESTORS WHO PUT THEIR MONEY INTO BOND FUNDS MONEY MARKET FUNDS AND FIXED RETURN ACCOUNTS WHICH TEND TO HAVE LOWER RETURNS THAN STOCK FUNDS OVER TIME COULD WAIT TWENTY YEARS OR MORE BEFORE THE ADVANTAGE OF THE TAX DEFERRAL GIVES THEM A HIGHER RETURN THAN THEY WOULD HAVE RECEIVED IN A TAXABLE MUTUAL FUND ASSUMING SIMILAR PERFORMANCE HOWEVER THE INSURANCE EXPENSES DO PAY FOR VARIABLE ANNUITY FEATURES THAT I. R. A.S DON'T HAVE WHICH MAY APPEAL TO SOME INVESTORS SUCH AS THE GUARANTEED DEATH BENEFIT THIS GUARANTEES THAT IF AN INVESTOR DIES THE BENEFICIARY WILL RECEIVE NO LESS THAN THE ORIGINAL AMOUNTS THE INVESTOR PUTS INTO THE ACCOUNT OVER TIME MINUS WITHDRAWALS IF AN INVESTOR PUT FIFTY THOUSAND DOLLARS INTO AN ACCOUNT AND HE LOSES MONEY AND DIES HIS HEIR WOULD RECEIVE THE FULL FIFTY THOUSAND DOLLARS OF COURSE IF HIS FUNDS PERFORMED WELL THE HEIR WOULD RECEIVE THE FIFTY THOUSAND DOLLARS PLUS THE EARNINGS TO THAT POINT SOME INVESTORS MISTAKENLY BELIEVE THAT THE GUARANTEED DEATH BENEFIT PROVIDES LIFE INSURANCE IT DOESN'T OR PROTECTS THEM FROM LOSS IT DOESN'T IF YOU LIVE YOU CAN LOSE MONEY IN VARIABLE ANNUITY FUNDS THE SAME WAY YOU LOSE MONEY IN FUNDS IN YOUR I. R. A. OR ELSEWHERE IN ADDITION VARIABLE ANNUITY INVESTORS CAN USE THE ANNUITY OPTION WHEN THEY DECIDE TO TAKE THE MONEY OUT OF THEIR ACCOUNT IN RETIREMENT BASED ON THEIR LIFE EXPECTANCY AND THE SIZE OF THEIR BALANCE THE INSURANCE COMPANY PAYS OUT A STREAM OF MONEY FROM THE ACCOUNT THAT IS INTENDED TO LAST FOR THE INVESTOR'S LIFETIME IF YOU DON'T NEED THESE FEATURES A VARIABLE ANNUITY MAY NOT MAKE SENSE SHOULD YOU DECIDE THAT YOU WANT THE ABILITY TO RECEIVE YOUR SAVINGS WHEN YOU RETIRE IN ANNUITY PAYMENTS YOU COULD ALWAYS WAIT TO BUY AN ANNUITY AT THAT TIME SIMILARLY IF YOU WANT TO RECEIVE THE MONEY IN YOUR I. R. A. IN ANNUITY PAYMENTS YOU WOULD HAVE TO SET UP AN ANNUITY ACCOUNT WITHIN YOUR I. R. A. WHEN THE TIME COMES BECAUSE OF COST AND ILLIQUIDITY VARIABLE ANNUITIES MAKE SENSE ONLY FOR INVESTORS WHO HAVE MAXED OUT THE CONTRIBUTIONS THEY CAN MAKE TO I. R. A.S AND COMPANY RETIREMENT PLANS WHO FULLY INTEND TO LEAVE THEIR MONEY INTACT FOR AT LEAST A DECADE AND WHO ARE WILLING TO PUT THEIR MONEY INTO FUNDS THAT PROVIDE THE POTENTIAL FOR HIGHER RETURNS QUOTE WHEN USED AS A GROWTH VEHICLE THE TAX DEFERRAL OUTWEIGHS THE COSTS FOR LONG TERM INVESTORS QUOTE SAYS MR. CERULLI IF AN ANNUITY MAKES SENSE COMPARE FEES PERFORMANCE AND FEATURES START BY GETTING SALES LITERATURE FROM AT LEAST FIVE COMPANIES AND ASK FOR TOTAL RETURNS OVER THREE YEARS LONGER IF AVAILABLE AFTER ALL EXPENSES HAVE BEEN DEDUCTED A USEFUL PUBLICATION THAT CONTAINS THIS INFORMATION ON MOST ANNUITIES IS MORNINGSTAR'S VARIABLE ANNUITY REPORT EIGHT HUNDRED EIGHT HUNDRED SEVENTY SIX FIVE THOUSAND FIVE A SINGLE ISSUE IS FIFTEEN DOLLARS A FEW NO LOAD MUTUAL FUND COMPANIES SELL ANNUITIES DIRECTLY TO CONSUMERS RATHER THAN THROUGH BROKERS OR AGENTS WHICH RESULTS IN LOWER COSTS FIDELITY INVESTMENTS' FIDELITY RETIREMENT RESERVES SCUDDER STEVENS AND CLARK'S SCUDDER HORIZON AND VANGUARD GROUP'S VARIABLE ANNUITY PLAN HAVE ANNUAL INSURANCE EXPENSES OF ONE POINT OH OH PERCENT ZERO POINT SIX THREE PERCENT AND ZERO POINT FIVE FIVE PERCENT COMPARED WITH AN AVERAGE OF ONE POINT TWO SEVEN PERCENT IN ADDITION VANGUARD AND SCUDDER ALSO HAVE LOWER THAN AVERAGE FUND EXPENSES AND NO SURRENDER CHARGES THUS THE TOTAL ANNUAL COSTS FOR A U. S. STOCK FUND IN THESE THREE ANNUITIES ARE ONE POINT SEVEN FIVE PERCENT AT FIDELITY ONE POINT THREE THREE PERCENT AT SCUDDER AND ZERO POINT NINE EIGHT PERCENT AT VANGUARD TAIWAN'S SECURITIES AND EXCHANGE COMMISSION PROPOSED TO RAISE THE CEILING OF FOREIGN INVESTMENTS TO TWELVE BILLION DOLLARS FROM FIVE BILLION DOLLARS S. E. C. CHAIRMAN DAY LININ SAID HE STRONGLY SUPPORTED THE PLAN OF OPENING TAIWAN'S MARKET WIDER TO FOREIGN INSTITUTIONAL INVESTORS THE LATEST PROPOSED CEILING OF TWELVE BILLION DOLLARS ROUGHLY TEN PERCENT OF MARKET VALUE OF TAIWAN'S LISTED SHARES COMPARED WITH THE S. E. C.'S PROPOSAL LAST MONTH TO DOUBLE THE CEILING TO TEN BILLION DOLLARS QUOTE THE NEW TAIWAN DOLLAR APPRECIATED ABOUT ONE POINT THREE ONE PERCENT IN THE PAST THREE MONTHS MUCH LOWER THAN OTHER MAJOR CURRENCIES QUOTE MR. DAY SAID MR. DAY MADE THE REMARKS FOLLOWING AN ASIAN WALL STREET JOURNAL REPORT YESTERDAY THAT TAIWAN'S CENTRAL BANK IS SLOWING THE FLOW OF FOREIGN CAPITAL INTO THE COUNTRY'S BOOMING STOCK MARKET OVER CONCERNS ABOUT RECENT APPRECIATION OF THE LOCAL CURRENCY AT THE END OF NINETEEN NINETY THREE FOREIGN INSTITUTIONS HAD REMITTED ABOUT TWO POINT SEVEN BILLION DOLLARS INTO TAIWAN FOR EQUITY INVESTMENTS EIGHTEEN FOREIGN INSTITUTIONS ARE AWAITING APPROVAL TO INVEST SOME ONE POINT THREE SIX BILLION DOLLARS IN TAIWAN ON THE FOREIGN EXCHANGE MARKET THE U. S. DOLLAR ENDED SLIGHTLY WEAKER AT TWENTY SIX POINT FIVE SIX NINE OH N. T. DOLLARS IN HEAVY TRADING YESTERDAY DEALERS SAID THE CENTRAL BANK BOUGHT ABOUT EIGHTY MILLION DOLLARS TO PREVENT A SHARP RISE OF THE N. T. DOLLAR METALLGESELLSCHAFT A. G. SAID IT IS SADDLED WITH A CUMULATIVE THREE POINT THREE BILLION MARKS ONE POINT NINE BILLION DOLLARS IN EXISTING AND POTENTIAL LOSSES NEARLY TEN TIMES THE ORIGINAL LOSS REPORTED FOR THE MOST RECENT FISCAL YEAR BY PREVIOUS MANAGEMENT KAJO NEUKIRCHEN THE COMPANY'S NEW CHIEF EXECUTIVE OFFICER SAID YESTERDAY THAT THE COMPANY WOULD BE FORCED INTO INSOLVENCY PROCEEDINGS UNLESS BANK CREDITORS FORMALLY APPROVE A THREE POINT TWO BILLION MARK RESCUE PACKAGE BY A JANUARY TWELFTH DEADLINE METALLGESELLSCHAFT REVISED ITS LOSS FOR THE FISCAL YEAR ENDED SEPTEMBER THIRTIETH NINETEEN NINETY THREE TO SHOW A DEFICIT OF NEARLY ONE POINT EIGHT BILLION MARKS COMPARED WITH ITS ORIGINAL REPORT OF A THREE HUNDRED FORTY SEVEN MILLION MARK LOSS IN ADDITION THE COMPANY SAID IT STANDS TO SHOW LOSSES OF AS MUCH AS AN ADDITIONAL ONE POINT FIVE BILLION MARKS FROM EXPOSURE IN OIL MARKETS MR. NEUKIRCHEN CLAIMED THAT THE COMPANY'S QUOTE EXTREME FINANCIAL PROBLEMS QUOTE COULDN'T BE OVERCOME BY CAPITAL INCREASES ALONE HE SAID THE COMPANY WOULD HAVE TO REDUCE LABOR COSTS BY BETWEEN SIX HUNDRED MILLION AND SEVEN HUNDRED MILLION MARKS THROUGH STAFF CUTS AND DIVESTITURES AFTER DROPPING THIRTY EIGHT PERCENT IN VALUE SINCE MID NOVEMBER METALLGESELLSCHAFT'S STOCK WAS SUSPENDED FROM TRADING YESTERDAY A DAY AFTER THE COMPANY SAID IT WON A POSITIVE RESPONSE FROM BANK CREDITORS FOR ITS PLAN TO AVERT INSOLVENCY THAT PLAN ENVISIONS RAISING ONE POINT FOUR BILLION MARKS IN NEW EQUITY AND A ONE POINT THREE BILLION MARK DEBT FOR EQUITY SWAP BY THE BANKS WHICH ALSO ARE BEING ASKED FOR A FRESH FIVE HUNDRED MILLION MARK CREDIT LINE A GERMAN BANKER INVOLVED IN THE TALKS SAID METALLGESELLSCHAFT'S TOP FIVE BANK CREDITORS ARE DEUTSCHE BANK BAYERISCHE LANDESBANK CREDIT LYONNAIS OF FRANCE NORDDEUTSCHE LANDESBANK AND SOCIETE GENERALE OF FRANCE IS THIS INVESTING FOR THE PROPHET OR THE PROFIT INVESTORS ARE BEING OFFERED AN INCREASING NUMBER OF MUTUAL FUNDS WITH TIES TO RELIGIOUS GROUPS AND THESE FUNDS ARE DOING FAIRLY WELL FOR INVESTORS QUOTE FIRE AND BRIMSTONE TEND TO MOTIVATE A LOT OF PEOPLE AND THERE'S NO BETTER SALESMAN OR SALES TOOL THAN THE PULPIT QUOTE SAYS LOUIS HARVEY PRESIDENT OF DALBAR FINANCIAL SERVICES A BOSTON FUND RESEARCH FIRM IT'S JUST ANOTHER WAY TO GET THE MESSAGE OUT TWO NEW FUNDS RECENTLY HIT THE MARKET DALLAS BASED AQUINAS FUNDS A SUBSIDIARY OF THE CATHOLIC FOUNDATION AND MMA PRAXIS MUTUAL FUNDS AN OFFSHOOT OF MENNONITE MUTUAL AID IN GOSHEN INDIANA BUT THERE ARE SOME LUTHERANS AND MUSLIMS WHO HAVE BEEN IN THE MUTUAL FUND BUSINESS FOR A LONG TIME THE MINNEAPOLIS BASED LUTHERAN BROTHERHOOD FIRST OFFERED A MUTUAL FUND TWENTY THREE YEARS AGO AND THE AAL MUTUAL FUNDS ASSOCIATED WITH THE AID ASSOCIATION FOR LUTHERANS IN APPLETON WISCONSIN FIRST SOLD SHARES IN NINETEEN EIGHTY SEVEN FOR INVESTORS ADHERING TO ISLAMIC PRINCIPLES THERE'S THE SEVEN YEAR OLD AMANA MUTUAL FUNDS TRUST'S INCOME FUND WHICH AS IT HAPPENS IS MANAGED BY AN EPISCOPALIAN MOST OF THESE MUTUAL FUNDS AREN'T JUST IN THE BUSINESS OF INVESTING FOR A PROFIT MANY FOLLOW STRICT RULES OF SOCIALLY RESPONSIBLE INVESTING THAT COMPLY WITH THEIR RELIGIOUS BELIEFS TO HELP PRESERVE PEACE THE MENNONITE'S MMA PRAXIS FUNDS FOR INCOME AND FOR GROWTH BOTH ARE RESTRICTED FROM INVESTING IN MILITARY CONTRACTORS AND ARMS PRODUCTION COMPANIES TREASURY BONDS WHICH COULD BE USED TO FINANCE MILITARY OPERATIONS ALSO ARE BANNED BONDS ARE BLASPHEMOUS FOR THE MUSLIMS TOO FOR VERY DIFFERENT REASONS IN ACCORDANCE WITH ISLAMIC PRINCIPLES INVESTORS CAN'T RECEIVE ANY INTEREST FROM LOAN TYPE AGREEMENTS SO BANK STOCKS ARE OFF LIMITS AND THE FUND CAN'T HOLD ANY ENTERTAINMENT COMPANIES THAT HAVE X. RATED BUSINESS BUT THE MUSLIMS ARE FREE TO OWN MILITARY RELATED STOCKS BOTH THE MUSLIM AND THE MENNONITE MUTUAL FUNDS CAN'T HAVE GAMBLING OR ALCOHOL INVESTMENTS THE MENNONITES ALSO SHUN TOBACCO STOCKS I'M SURE SOME MENNONITES SMOKE AND DRINK SAYS J. B. MILLER VICE PRESIDENT OF MENNONITE MUTUAL AID BUT THE OFFICIAL STANCE IS TO TEACH AGAINST IT SO WE DON'T BUY THE STOCKS PRAXIS MUTUAL FUNDS HAVE A BACK END SALES CHARGE OR LOAD OF FIVE PERCENT IF INVESTORS WITHDRAW WITHIN THE FIRST YEAR THE LOAD DECLINES ONE PERCENTAGE POINT EVERY YEAR UNTIL THERE IS NO CHARGE ANNUAL MANAGEMENT FEES ARE ONE POINT ONE PERCENT FOR THE INCOME FUND AND ONE POINT SEVEN FIVE PERCENT FOR THE GROWTH FUND THE CATHOLICS' AQUINAS FUNDS DON'T HAVE ANY INDUSTRYWIDE TYPE OF PROHIBITIONS THESE FUNDS COULD EVEN HOLD SHARES IN A DRUG COMPANY THAT MIGHT HAVE A CONTRACEPTIVE PRODUCT WHICH IS AGAINST CATHOLIC TEACHING SAYS BERNARD DIFIORE EXECUTIVE DIRECTOR OF THE CATHOLIC FOUNDATION IF THE FUNDS OWN STOCK IN A COMPANY THAT IS AGAINST CATHOLIC BELIEFS HOWEVER INVESTORS AND OFFICERS OF THE FUND WILL SEND FORMAL PETITIONS TO COMPANY OFFICIALS WE THINK WE CAN ACCOMPLISH MORE BY TELLING MANAGEMENT RATHER THAN AVOIDING INVESTMENTS MR. DIFIORE SAYS THE LUTHERANS DON'T HAVE AN OFFICIAL LIST OF INVESTING RESTRICTIONS BUT QUOTE AS A PRIVATE POLICY QUOTE THE MANAGERS DON'T INVEST IN GAMBLING AND TOBACCO STOCKS OR COMPANIES WHOSE PRIMARY BUSINESS INVOLVES ALCOHOL SAYS JIM WALLINE HEAD OF LUTHERAN BROTHERHOOD'S MUTUAL FUNDS WHILE SEVERAL OF THE FUNDS ARE OPEN TO INVESTORS FROM ANY RELIGION SOME HAVE CONSTRAINTS ON WHO CAN INVEST FOR EXAMPLE THE LUTHERAN BROTHERHOOD A FRATERNAL ORGANIZATION MARKETS EXCLUSIVELY TO LUTHERANS RELIGION ASIDE THESE FUNDS HAVE A LOT IN COMMON ALL HAVE A RELATIVELY LOW RISK APPROACH TO INVESTING AND AVERAGE TO ABOVE AVERAGE RETURNS ANALYSTS SAY THERE IS NO REASON WHY A WELL MANAGED FUND OF THIS VARIETY COULDN'T BE A COMPETITIVE PRODUCT SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER SKEPTICS SAY THAT THE INVESTING IS LIMITED BUT THE EVIDENCE OR PERFORMANCE ISN'T CONCLUSIVE ONE WAY OR THE OTHER IN NINETEEN NINETY THREE THE AMANA INCOME FUND WAS UP ELEVEN POINT SIX PERCENT AND OVER FIVE YEARS THE FUND HAS SHOWN AN ANNUAL RETURN OF NINE POINT NINE SIX PERCENT THE FUND'S TEN POINT FIVE MILLION DOLLARS IN ASSETS ARE SPREAD AMONG MORE THAN A FEW DOZEN STOCKS IT HOLDS LARGE POSITIONS IN WASHINGTON WATER POWER U. S. X. U. S. STEEL GROUP ARCO CHEMICAL AND PACIFIC TELESIS GROUP IT'S A NOLOAD FUND WITH ANNUAL OPERATING EXPENSES OF ONE POINT FIVE EIGHT PERCENT OUR BIGGEST LIMITATION IS NOT BEING ABLE TO BUY BANK STOCKS AND INSURANCE STOCKS SAYS NICHOLAS KAISER THE FUND'S MANAGER AND PRESIDENT OF SATURNA CAPITAL CORPORATION IN BELLINGHAM WASHINGTON WHICH ACTS AS THE ADVISER THE AMANA MUTUAL FUNDS TRUST HAS PLANS TO OFFER A GROWTH PORTFOLIO WHICH WILL INVEST MORE IN TECHNOLOGY AND MEDICAL RELATED STOCKS OUR GOAL ISN'T TO BE NUMBER ONE MR. KAISER SAYS QUOTE IT'S TO GET A GOOD DECENT RETURN AND GIVE MUSLIMS A WAY TO INVEST ACCORDING TO THE KORAN QUOTE MR. KAISER CONSULTS WITH NORTH AMERICAN ISLAMIC TRUST WHOSE MEMBERS HOLD SOME SPOTS ON THE FUND'S BOARD TO ENSURE THE FUND MEETS THE FAITH'S REQUIREMENTS AMONG THE LUTHERAN BROTHERHOOD'S FAMILY OF SIX FUNDS THE LUTHERAN BROTHERHOOD FUND HOLDING FIVE HUNDRED TWENTY FIVE MILLION DOLLARS IN ASSETS WAS UP EIGHT POINT SEVEN PERCENT IN NINETEEN NINETY THREE AND THIRTEEN POINT SIX FOUR PERCENT ANNUALLY FOR THE PAST FIVE YEARS THIS FUND HAS A LOAD OF FIVE PERCENT AND ANNUAL EXPENSES OF ONE POINT ONE PERCENT AAL CAPITAL GROWTH FUND WAS UP SIX POINT ONE PERCENT FOR NINETEEN NINETY THREE AND HAS AN ANNUAL AVERAGE RETURN OF THIRTEEN POINT EIGHT PERCENT FOR THE PAST FIVE YEARS AAL MUTUAL FUNDS WHICH LIKE MANY SIMILAR FUNDS HAS MONEY MANAGERS OUTSIDE THE RELIGIOUS ORGANIZATION PICKING THE INVESTMENTS CURRENTLY OFFERS FIVE DIFFERENT FUNDS SMALL STOCKS CAPITAL GROWTH BONDS MUNICIPAL BONDS AND MONEY MARKET INSTRUMENTS THE FUNDS HAVE A LOAD OR UPFRONT SALES CHARGE FEE OF FOUR POINT SEVEN FIVE PERCENT AND OPERATING EXPENSES RANGING FROM ONE PERCENT TO TWO PERCENT DEPENDING ON THE FUND THE CATHOLICS ALREADY ARE MANAGING MONEY FOR NONPROFIT GROUPS WITH SOME SUCCESS THE CATHOLIC FOUNDATION'S MR. DIFIORE SAYS THE ONE HUNDRED MILLION DOLLARS IN THE CATHOLIC COMMON TRUST FUND FOR NONPROFIT ORGANIZATIONS HAS BEEN MANAGED IN THREE DIFFERENT AREAS EQUITY INCOME GROWTH STOCKS AND FIXED INCOME SIMILAR AREAS WHERE THE NEW FUNDS WILL INVEST THE TRUST'S OUTSIDE MANAGERS PRODUCED A RETURN OF THIRTEEN POINT NINE PERCENT FOR NINETEEN NINETY THREE AQUINAS FUNDS HAS NO LOAD BUT HAS ANNUAL OPERATING EXPENSES RANGING FROM ONE PERCENT TO ONE POINT SIX FIVE PERCENT ANY PROFITS FROM THE FEES WILL BE DONATED TO THE CATHOLIC FOUNDATION TO BE DISTRIBUTED TO CHARITABLE ORGANIZATIONS MENNONITE MUTUAL AID ALSO HAS BEEN MANAGING MONEY FOR NONPROFIT ORGANIZATIONS FOR A LONG TIME AND SPECIFICALLY SET UP THE FUNDS AFTER RECEIVING REQUESTS ASKING FOR INVESTMENT ADVICE MENNONITE MUTUAL AID REPORTS THAT ITS STOCK PORTFOLIO HAS HAD A COMPOUNDED ANNUAL RATE OF RETURN OF SEVENTEEN POINT ONE SIX PERCENT IN THE PAST EIGHT YEARS I DON'T WANT TO GIVE THE IMPRESSION THAT THE NUNS HAVE A LOT OF MONEY UNDER THEIR MATTRESSES SAYS MR. DIFIORE FROM THE CATHOLIC FOUNDATION BUT THERE ARE A LOT OF MEMBERS OF THESE ORGANIZATIONS THAT LIKE THE WAY WE'VE INVESTED AND WANT TO BE INVOLVED PERSONALLY NEGOTIATORS FROM ONE HUNDRED SEVENTEEN COUNTRIES EVENTUALLY DECIDED TO SIDESTEP THE EMOTIONAL ISSUE OF FILMS IN THE JUST COMPLETED WORLD TRADE TALKS BUT A FORMER ACTRESS SAID SHE HAS NO INTENTION OF LETTING THE ISSUE DIE MELINA MERCOURI THE CULTURE MINISTER IN THE NEWLY RETURNED GREEK SOCIALIST GOVERNMENT SAID SHE HAS QUOTE GREAT CONCERNS QUOTE THAT EUROPE'S AUDIO VISUAL SECTOR COULD FACE NEW ASSAULTS FROM THE U. S. OR ELSEWHERE DESPITE THE DECISION TO EXCLUDE THAT INDUSTRY FROM THE URUGUAY ROUND OF TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE U. S. AND EUROPEAN UNION FORMERLY CALLED THE EUROPEAN COMMUNITY CLASHED DURING THE TRADE TALKS OVER QUOTAS AND LEVIES ON U. S. FILMS IN EUROPE EUROPE BELIEVES ITS PROTECTION OF THE INDUSTRY IS VITAL TO PRESERVE COUNTRIES' CULTURAL IDENTITY THIS IS A QUESTION THAT COULD POP UP AGAIN IN FOUR OR SIX YEARS MS. MERCOURI KNOWN FOR THE MOVIE NEVER ON SUNDAY TOLD JOURNALISTS IT WORRIES ME THAT WE DON'T HAVE ANYTHING FINAL SHE SAID THAT GREECE WHICH ASSUMED THE ROTATING E. U. PRESIDENCY ON JANUARY FIRST PLANNED TO CALL A SPECIAL APRIL MEETING OF E. U. OFFICIALS RESPONSIBLE FOR CULTURAL ISSUES TO DISCUSS THE EUROPEAN FILM INDUSTRY'S FUTURE WE MUST SHOW THE WORLD THAT THERE ARE OUTSTANDING FILM DIRECTORS IN EUROPE SHE SAID IT IS NOT PERMISSIBLE TO ALLOW THE EUROPEAN FILM INDUSTRY TO DIE AND IT IS NOT GOING TO DIE THE MINISTER SAID THERE WERE NO SECRET WEAPONS TO REVERSE THE EUROPEAN FILM INDUSTRY'S SAGGING FORTUNES BUT PLEDGED TO PROPOSE AN E. U. PROGRAM THAT WOULD ENCOURAGE SOME CINEMAS IN LARGE CITIES TO RESERVE THEIR SCREENS FOR EUROPEAN MADE FILMS RATHER THAN U. S. BLOCKBUSTERS SUCH AS JURASSIC PARK THE EUROPEAN COMMISSION WHICH IS PREPARING A STUDY PAPER ON THE FILM INDUSTRY IS LEANING TOWARD A SIMILAR SUBSIDY SCHEME IN ADDITION MS. MERCOURI CALLED FOR MORE CINEMATIC CO PRODUCTIONS AMONG SEVERAL EUROPEAN COUNTRIES ALTHOUGH MANY FILM CRITICS SAY THE RECORD OF SUCH PRODUCTIONS TO DATE HAS BEEN POOR BY INVOLVING SEVERAL COUNTRIES THE CRITICS SAY THE FILMS OFTEN FAIL TO PRESENT AN ACCURATE PICTURE OF ANY OF THOSE NATIONS EMPLOYERS CASUALTY COMPANY A DALLAS BASED INSURANCE COMPANY WITH OPERATIONS NATIONWIDE WAS DECLARED INSOLVENT IN THE SECOND LARGEST PROPERTY CASUALTY COMPANY FAILURE IN TEXAS HISTORY EMPLOYERS CASUALTY WAS PLACED INTO TEMPORARY RECEIVERSHIP BY STATE DISTRICT JUDGE JEANNE MEURER HERE WHO ORDERED THE COMPANY'S BANK ACCOUNTS FROZEN THE TEXAS PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION WILL ASSUME RESPONSIBILITY FOR PAYING TEXANS' COVERED CLAIMS THE TEXAS DEPARTMENT OF INSURANCE SAID POLICYHOLDERS OUTSIDE TEXAS ARE PROTECTED BY GUARANTY ASSOCIATIONS OF THE STATES WHERE THEY LIVE THE DEPARTMENT SAID EMPLOYERS CASUALTY OPERATED IN FORTY NINE STATES AND SEVERAL FOREIGN COUNTRIES NATIONWIDE THE COMPANY'S EIGHTEEN THOUSAND NINE HUNDRED OPEN CLAIMS TOTAL THREE HUNDRED FORTY THREE MILLION DOLLARS IN NET EXPOSURE WHICH IS UNPAID CLAIMS MINUS FUNDS DEPOSITED WITH STATE INSURANCE REGULATORS AS SECURITY TEXAS ACCOUNTS FOR EIGHTY TWO PERCENT OF THE TOTAL WORKERS' COMPENSATION ACCOUNTED FOR ABOUT HALF OF EMPLOYERS CASUALTY'S BUSINESS THE COMPANY ALSO SOLD GENERAL LIABILITY PRIVATE PASSENGER AND COMMERCIAL AUTO LIABILITY MEDICAL MALPRACTICE AND HOMEOWNERS INSURANCE ON MARCH NINTH NINETEEN NINETY TWO THE COMPANY WAS PLACED IN CONSERVATORSHIP AND PROHIBITED FROM WRITING NEW POLICIES IT HALTED POLICY RENEWALS AFTER A ONE YEAR PERIOD WHILE EMPLOYERS CASUALTY WAS IN CONSERVATORSHIP MANAGEMENT HIRED BY A COURT APPOINTED OFFICIAL REDUCED THE COMPANY'S STAFF TO THREE HUNDRED TWENTY FROM ONE THOUSAND TWO HUNDRED AND SOUGHT INFUSIONS OF CAPITAL TO REVIVE THE COMPANY THOSE EFFORTS FAILED HOWEVER LEADING TO THE DECISION TO SEEK RECEIVERSHIP THE TEXAS INSURANCE DEPARTMENT SAID THE FAILURE OF THE COMPANY RANKS SECOND IN SIZE IN TEXAS TO THE NINETEEN NINETY ONE INSOLVENCY OF TEXAS EMPLOYERS INSURANCE ASSOCIATION HERE'S A TIP FOR MUTUAL FUND INVESTORS WHO TEACH OR WORK FOR NONPROFITS AND HOSPITALS IF YOU HAVE A FOUR HUNDRED THREE B. PLAN YOU MAY BE ABLE TO MOVE YOUR ACCUMULATED ASSETS OUT OF IT TO THE MUTUAL FUND COMPANY OF YOUR CHOICE YOU CAN DO THIS EVEN IF YOU DON'T CHANGE JOBS AND EVEN IF THE MUTUAL FUND COMPANY YOU WANT TO PUT YOUR MONEY INTO ISN'T ON THE LIST APPROVED BY YOUR SCHOOL DISTRICT OR EMPLOYER THE CATCHES YOU CAN TRANSFER ONLY YOUR ACCUMULATED SAVINGS ALREADY IN THE ACCOUNT NOT NEW MONEY YOU MAY HAVE TO PAY SURRENDER PENALTIES WHICH MOST ANNUITIES IMPOSE AND IF YOUR EMPLOYER HAS PUT MONEY INTO YOUR ACCOUNT THE DEAL IS OFF TO MAKE A TAX FREE TRANSFER YOU MERELY CONTACT THE MUTUAL FUND COMPANY OR BROKERAGE FIRM AT WHICH YOU WANT TO OPEN A FOUR HUNDRED THREE B. SEVEN CUSTODIAL TRANSFER ACCOUNT IT WILL SEND YOU AN APPLICATION AND WILL ARRANGE THE TRANSFER WHY MOVE THE MONEY TO GET BETTER RETURNS LOWER FEES AND MORE CONTROL OVER YOUR MONEY BEFORE DECIDING COMPARE THE TOTAL ANNUAL FEES AND PERFORMANCE OF THE ANNUITIES WHERE YOUR FOUR HUNDRED THREE B. MONEY CURRENTLY LIVES WITH THOSE OF THE MUTUAL FUNDS TO WHICH YOU ARE CONSIDERING SWITCHING ONE TACK GET THE VARIABLE ANNUITY PERFORMANCE REPORT AND THE MUTUAL FUND PERFORMANCE REPORT FIFTEEN DOLLARS EACH FROM MORNINGSTAR INCORPORATED EIGHT HUNDRED EIGHT HUNDRED SEVENTY SIX FIVE THOUSAND FIVE STROBE TALBOTT WAS ALWAYS ONE OF THE ANOINTED IN NINETEEN SIXTY SEVEN WHEN NEW YORK TIMES COLUMNIST JAMES RESTON WANTED TO EXPLAIN THE AMERICAN ELITE'S INCREASING DISCOMFORT WITH THE WAR IN VIETNAM HE VISITED YALE AND INTERVIEWED AN EARNEST TWENTY ONE YEAR OLD JUNIOR QUOTE THE STROBE TALBOTTS AT YALE QUOTE MR. RESTON WOULD WRITE MIGHT NOT BE MARCHING BUT THEIR QUOTE SOLEMN QUOTE AND QUOTE CLEAN CUT QUOTE DISSENT QUOTE MAY BE MUCH MORE IMPORTANT THAN THE SIGN CARRYING PROTESTERS ON THE FRONT PAGE QUOTE BUT IT WAS THREE YEARS LATER IN A SPARELY FURNISHED ROW HOUSE IN OXFORD ENGLAND THAT HIS LIFE COURSE WAS FIRMLY SET MR. TALBOTT TOILED THERE IN THE PREDAWN HOURS SECRETLY TRANSLATING THE MEMOIRS OF OUSTED SOVIET LEADER NIKITA KHRUSHCHEV SUSTAINED BY SCRAMBLED EGGS AND TEA COOKED UP BY HIS HOUSEMATE BILL CLINTON MR. TALBOTT'S DRIVE AND THAT RHODES SCHOLAR FRIENDSHIP HAS WON HIM A POWERFUL PLACE IN THE CLINTON ADMINISTRATION FIRST AS THE TOP RUSSIA STRATEGIST AND SOON AS THE NUMBER TWO AT THE STATE DEPARTMENT MANY IN WASHINGTON SEE HIM AS THE SECRETARY OF STATE IN WAITING BUT IT IS RUSSIA THAT HAS BEEN MR. TALBOTT'S PASSION LIFE'S WORK AND MAGNIFICENT OBSESSION SINCE HE WAS A TEENAGER HE HAS PORED OVER RUSSIAN POETRY FOR TWO DECADES HE HAS WRITTEN ABOUT THE WORST AND BEST OF U. S. RUSSIAN RELATIONS HE TOOK HIS FAMILY CAMPING IN SIBERIA AND DESPITE THE RUINOUS LEGACY OF COMMUNISM HE IS CONVINCED THAT DEMOCRACY CAN SUCCEED IN RUSSIA THOUGH IT NEVER HAS BEFORE THAT CONVICTION HAS HAD A POWERFUL EFFECT ON PRESIDENT CLINTON WHO HAS INVESTED HUGE AMOUNTS OF CASH AND PRESTIGE IN RUSSIA AND ITS PRESIDENT BORIS YELTSIN AND CONTINUES TO INVEST DESPITE SUCH SETBACKS AS THE STRONG SHOWING BY RUSSIAN FASCISTS AND COMMUNISTS IN DECEMBER'S PARLIAMENTARY ELECTIONS MR. CLINTON WILL REAFFIRM THAT SUPPORT MR. TALBOTT'S PHRASE IS NOW MORE THAN EVER NEXT WEEK WHEN HE GOES TO MOSCOW FOR HIS SECOND SUMMIT WITH MR. YELTSIN TO SOME CRITICS THE ELECTION RESULTS AND MR. TALBOTT'S FAILURE TO PREDICT THEM ARE PROOF EITHER OF HIS NAIVETE ABOUT RUSSIA OR A CAPACITY FOR SELF DELUSION I DON'T REALLY THINK STROBE IS NAIVE OR ROMANTIC ABOUT WHAT'S GOING ON IN RUSSIA SAYS MARSHALL GOLDMAN ASSOCIATE DIRECTOR OF HARVARD'S RUSSIAN RESEARCH CENTER HE'S JUST SO COMMITTED TO MAKING IT WORK THAT HE'LL BLIND HIMSELF AND BLIND OTHERS WHEN THINGS GO WRONG DAVID SATTER AN OLD OXFORD FRIEND OF MR. TALBOTT'S AND MR. CLINTON'S WHO SPENT YEARS IN MOSCOW AS A REPORTER SAYS FOR ALL MY AFFECTION FOR STROBE THEIR POLICY IS ASCRIBING AMERICAN ATTRIBUTES TO RUSSIA WHERE THEY DON'T APPLY ON SEPTEMBER TWENTY FIRST JUST BEFORE THE NEWS BROKE THAT MR. YELTSIN WAS DISBANDING HIS PARLIAMENT MR. TALBOTT WAS ASSURING A CONGRESSIONAL COMMITTEE ABOUT THE NORMALIZATION OF POLITICS IN RUSSIA AND UKRAINE WHERE LEGISLATORS GET UP AND YELL AND SCREAM BUT THEY DON'T HAVE TO WORRY ABOUT BEING TAKEN AWAY IN THE MIDDLE OF THE NIGHT WITHIN THE ADMINISTRATION MR. TALBOTT'S ZEAL HAS SOMETIMES CAUSED A STIR A WIDELY QUOTED REMARK FOLLOWING RUSSIA'S ELECTIONS THAT MOSCOW NEEDED QUOTE LESS SHOCK AND MORE THERAPY QUOTE SPARKED A FUROR AT THE TREASURY DEPARTMENT WHERE OFFICIALS FEARED MOSCOW WOULD TAKE IT AS AN INVITATION TO BACK OFF REFORMS IT WASN'T A WELL CHOSEN LOCUTION SAYS A SENIOR U. S. OFFICIAL WITH ECONOMICS NOW CENTRAL TO RUSSIA'S SUCCESS AND MR. TALBOTT AN ECONOMICS NEOPHYTE HE WILL AT LEAST HAVE TO CHOOSE HIS WORDS MORE CAREFULLY ON HIS TRIP PRESIDENT CLINTON WILL CALL FOR MORE SHOCK AND MORE THERAPY MR. TALBOTT SAYS HE PLEADS GUILTY TO THE CHARGE OF BEING A ROMANTIC BUT NOT A TRUE BELIEVER IN HIS YEARS OF WRITING FOR TIME MAGAZINE HE SAW SOME OF THE WORST RUSSIA COULD MUSTER AFTER THE KHRUSHCHEV MEMOIRS CAME OUT HE WAS BANNED FOR FIVE YEARS FROM THE SOVIET UNION MY OPTIMISM IS ROOTED NOT IN ROMANCE BUT IN A CLEARER EYED PERCEPTION OF WHAT THE PEOPLE HAVE ACCOMPLISHED IN THE PAST AND WHAT THEY ARE ACCOMPLISHING NOW HE SAYS NELSON STROBRIDGE TALBOTT THE THIRD WAS RAISED IN COMFORT AND PRIVILEGE OUTSIDE CLEVELAND THIRD GENERATION HOTCHKISS SCHOOL THIRD GENERATION YALE HIS GRANDFATHER WAS A MEMBER OF WALTER CAMP'S FIRST ALL AMERICA FOOTBALL TEAM MR. TALBOTT SAYS TWO EVENTS IN HIS EARLY LIFE SPARKED HIS PASSION FOR RUSSIA THE TERROR OF THE NINETEEN SIXTY TWO CUBAN MISSILE CRISIS AND A MAGICAL CLASS AT HOTCHKISS IN RUSSIAN LITERATURE IN TRANSLATION BY HIS FRESHMAN YEAR AT YALE MR. TALBOTT WAS CLEARLY QUOTE IN LOVE WITH THE LANGUAGE AND CULTURE IF NOT THE SYSTEM QUOTE SAYS HIS BROTHER IN LAW AND YALE CLASSMATE DEREK SHEARER IN THEIR INTENSIVE RUSSIAN CLASS THE STUDENTS WERE REQUIRED TO GIVE REGULAR FIVE MINUTE SPEECHES I WOULD TALK ABOUT CALIFORNIA WHERE I COME FROM MR. SHEARER RECALLS AND STROBE WOULD GIVE A TALK I REMEMBER THE TITLE EXACTLY ON THE MYSTIQUE OF THE RUSSIAN SOUL MR. TALBOTT WROTE HIS SENIOR THESIS ON FYODOR TYUTCHEV A NINETEENTH CENTURY RUSSIAN LYRIC POET WHOSE VERSE RECENTLY FOUND ITS WAY INTO A SPEECH BY SECRETARY OF STATE WARREN CHRISTOPHER THE POINT OF NO RETURN CAME DURING MR. TALBOTT'S SECOND YEAR AT OXFORD WHEN TIME INCORPORATED HIRED HIM TO TRANSLATE THE SMUGGLED KHRUSHCHEV MEMOIRS SWEARING BOTH HIM AND HIS HOUSEMATES TO STRICT SECRECY THE KHRUSHCHEV PROJECT CHANGED HIS LIFE MARKING HIM AS A YOUNG MAN ON A FAST TRACK WITH AN ABIDING PASSION IRONICALLY THE MEMOIRS WOULD KEEP HIM OUT OF RUSSIA FOR YEARS THE SOVIET GOVERNMENT DENOUNCED THE FIRST VOLUME AS A FORGERY BRANDING MR. TALBOTT A SAPLING OF THE CENTRAL INTELLIGENCE AGENCY IN NINETEEN SEVENTY FOUR AS HE WAS GETTING READY TO MOVE TO MOSCOW FOR TIME A SECOND VOLUME WAS PUBLISHED AND THE AUDIO TAPES AUTHENTICATED HE WAS DECLARED PERSONA NON GRATA AND BARRED FROM RUSSIA FOR FIVE YEARS AS LATE AS NINETEEN EIGHTY FIVE HE REMAINED ON AT LEAST ONE K. G. B. LIST ON A TRAIN TRIP TO RUSSIA FROM POLAND MR. TALBOTT WAS ROUSTED BY ARMED SOVIET GUARDS AND INTERROGATED FOR SEVERAL HOURS IT WAS THE MIDDLE OF THE NIGHT AND I CAN STILL REMEMBER STROBE IN HIS PAJAMAS AND SLIPPERS BEING MARCHED THROUGH THE SNOW AND SLUSH UP THE TRACK SAYS HIS TRAVELING COMPANION STEPHEN SMITH THEN TIME'S NATION EDITOR EVEN THEN MR. TALBOTT NEVER LOST HIS PASSION IN NINETEEN EIGHTY SEVEN HE PUBLISHED A POEM IN THE NEW YORKER DESCRIBING A VISIT TO THE UZBEK CAPITAL OF TASHKENT AND THE REFUGE HE FOUND WITH THE AGING WIDOW OF A COMPOSER THE ONLY HOME WHERE I CAN GO IN TASHKENT AT LEAST IS YOURS HERE'S TO YOU MY HOSTESS TO PEACE FRIENDSHIP AND TREASON THERE IS AN APOCRYPHAL TALE ABOUT MR. TALBOTT AND WASHINGTON THE PATRICIAN MR. TALBOTT BEGAN HIS CONFIRMATION HEARINGS BY INSTRUCTING SENATORS HOW TO PRONOUNCE HIS NAME TAWL BOT NOT TAL BIT IN TRUTH MR. TALBOTT OFFERED THE ADMONITION IN JEST WHILE PRACTICING FOR HIS HEARINGS WITH AIDES AT THE STATE DEPARTMENT QUOTE ONE THING YOU LEARN VERY EARLY ON QUOTE HE SAYS QUOTE IS NOT TO CONTRADICT SENATORS QUOTE THERE IS ALSO A CALCULATING SIDE TO MR. TALBOTT'S RELENTLESSLY OPTIMISTIC VIEW OF RUSSIA ON FOREIGN POLICY MATTERS HE SAYS AMERICANS LIKE INSTANT GRATIFICATION THEY WANT TO SEE A QUICK FIX SINCE RUSSIA'S TRANSITION TO DEMOCRACY WILL NOT BE PRETTY OR QUICK HE REASONS AMERICANS NEED COAXING AND CHEERLEADING TO STICK WITH THE POLICY MR. TALBOTT IS A CONSUMMATE BRIEFER PLAYING DOWN DOUBTS AND FEARS ABOUT RUSSIA WHENEVER THEY ARISE HOURS AFTER PRESIDENT YELTSIN ORDERED THE ATTACK ON THE RUSSIAN PARLIAMENT MR. TALBOTT WAS IN FRONT OF THE C. N. N. CAMERAS INSISTING THAT OPPOSITION FORCES HAD PROVOKED THE CONFRONTATION AND THAT THE GOVERNMENT HAD USED ONLY THAT DEGREE OF FORCE THAT WAS ABSOLUTELY NECESSARY SUCH AN APPROACH DOES HAVE ITS DANGERS A PUBLIC BACKLASH COULD ERUPT IF RUSSIA FAILS TO LIVE UP TO THE ROSY VIEW MOSCOW MIGHT ALSO CONCLUDE THAT U. S. SUPPORT IS VIRTUALLY UNCONDITIONAL MR. TALBOTT SAYS THAT HE IS FAR STERNER WITH THE RUSSIANS IN PRIVATE FOR REASONS OF SHEER PRAGMATISM PRESIDENT CLINTON ALMOST CERTAINLY WOULD HAVE BEEN A YELTSIN SUPPORTER HE CAME TO OFFICE CONVINCED THAT ONLY WITH A STABLE RUSSIA COULD HE AFFORD TO CHOP THE DEFENSE BUDGET ENOUGH TO FUND HIS DOMESTIC AGENDA WHAT MR. TALBOTT HAS PROVIDED IS THE STRATEGY PRESSING FOR CLOSER RUSSIAN U. S. COLLABORATION IN SPACE DEFENSE SCIENCE AND TECHNOLOGY WHEN NECESSARY HE HAS FOUGHT LIKE A TIGER TO DEFEND HIS VISION LAST FALL WHEN MR. CHRISTOPHER AND OTHER TOP OFFICIALS WERE LEANING TOWARD EXTENDING PROVISIONAL MEMBERSHIP IN THE NORTH ATLANTIC TREATY ORGANIZATION TO EASTERN EUROPE'S NEW DEMOCRACIES MR. TALBOTT POUNDED OUT A SINGLE SPACED FIVE PAGE MEMO ARGUING THAT THE MOVE WOULD FEED RUSSIAN PARANOIA AND WEAKEN MR. YELTSIN MR. CHRISTOPHER AIDES SAY WAS SWAYED AND SO WAS THE PRESIDENT WHERE MR. TALBOTT HAS MADE THE BIGGEST DIFFERENCE IS IN KEEPING MR. CLINTON COMMITTED TO RUSSIAN REFORM THROUGH A SERIES OF BONE CHILLING CRISES THE MORE SEASONED GEORGE BUSH FLINCHED WHEN HE FIRST GOT THE NEWS THAT MIKHAIL GORBACHEV HAD BEEN DEPOSED IN THE AUGUST NINETEEN NINETY ONE COUP ATTEMPT MR. CLINTON HAS YET TO FLINCH MR. TALBOTT SAYS THEIR FUNDAMENTAL CONFIDENCE IN PRESIDENT YELTSIN HAS NEVER WAVERED BUT HE ADMITS THERE HAVE BEEN HAIRY MOMENTS ONE OF THE MOST WORRISOME CAME ON OCTOBER THIRD WHEN RUSSIAN HARDLINERS APPEARED TO BE GAINING CONTROL OF THE MOSCOW STREETS AND THE YELTSIN GOVERNMENT WENT SILENT FOR HOURS SITTING IN HIS STUDY AT HOME WATCHING THE CRISIS UNFOLD ON C. N. N. MR. TALBOTT RECALLS HEARING A MOB OF RUSSIAN NATIONALISTS CHANTING KILL THE YIDS SAVE RUSSIA IT ONLY CONFIRMED HIS COMMITMENT TO THE POLICY QUOTE THE ALTERNATIVE TO REFORM QUOTE HE SAYS IS THAT CHANTING MOB LESS CLEAR IS HOW MR. TALBOTT WILL HANDLE POLICY QUESTIONS OUTSIDE RUSSIA ONCE HE IS CONFIRMED AS DEPUTY SECRETARY OF STATE AS A COLUMNIST HE ADVOCATED AN ACTIVIST FOREIGN POLICY CALLING FOR UNITED NATIONS AND U. S. MILITARY ACTION IN BOSNIA AND SOMALIA THOUGH MR. CLINTON SOUNDED THOSE SAME THEMES A YEAR AGO AFTER A SERIES OF SETBACKS HE HAS SETTLED FOR A WEARY REALISM KEMPER CORPORATION OPTED TO SETTLE TWO LAWSUITS AGAINST ITS SECURITIES UNIT INCLUDING ONE THAT YIELDED A PUNISHING ONE HUNDRED THIRTY SEVEN POINT FOUR MILLION DOLLAR VERDICT AGAINST THE COMPANY THE OTHER CASE INVOLVED AN EPISODE IN WHICH KEMPER'S SECURITIES UNIT UNSUCCESSFULLY SOUGHT TO HELP AN EVANGELICAL ORIENTED COLLEGE FOUNDED BY JERRY FALWELL SELL SIXTY ONE MILLION DOLLARS IN FIRST MORTGAGE BONDS THE LONG GROVE ILLINOIS INSURANCE AND FINANCIAL CONCERN DIDN'T DISCLOSE TERMS OF THE SETTLEMENTS BEYOND NOTING THAT THEY WILL HAVE QUOTE NO IMPACT QUOTE ON EARNINGS BECAUSE RESERVES HAD BEEN TAKEN IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KEMPER SHARES JUMPED EIGHTY SEVEN POINT FIVE CENTS TO THIRTY SEVEN DOLLARS IN THE LARGEST CASE KEMPER SAID IT AGREED TO SETTLE ALL CLAIMS ASSERTED BY CONTICOMMODITY SERVICES INCORPORATED AND CONTI CUSTOMERS THE CONTICOMMODITY CASE IS THE ONE IN WHICH A HOUSTON JURY HAD FOUND IN NINETEEN NINETY TWO AGAINST KEMPER'S PRESCOTT BALL AND TURBEN BROKERAGE DIVISION NEW YORK BASED CONTICOMMODITY A NOW INACTIVE UNIT OF CLOSELY HELD CONTINENTAL GRAIN COMPANY FILED SUIT IN NINETEEN EIGHTY SIX ALLEGING THAT A GOVERNMENT BOND TRADER AT PRESCOTT HAD ENTERED INTO PREARRANGED TRADES WITH A TRADER AT CONTICOMMODITY'S HOUSTON ARBITRAGE OFFICE IT CONTENDED THAT MANY OF THE LOSSES THEN WERE ASSIGNED TO CUSTOMERS OF CONTICOMMODITY THE SUIT ALLEGED THAT THE TRADES OCCURRED FROM NINETEEN EIGHTY TWO TO NINETEEN EIGHTY FOUR BOTH BEFORE AND AFTER KEMPER'S NINETEEN EIGHTY TWO ACQUISITION OF PRESCOTT KEMPER DEFENDED THE CASE IN COURT AND IN APRIL NINETEEN NINETY TWO WAS STUNNED BY THE JURY'S ONE HUNDRED THIRTY SEVEN POINT FOUR MILLION DOLLAR VERDICT IN A SECOND UNPLEASANT SURPRISE FOR KEMPER THE JUDGE IN THE HOUSTON TRIAL SUBSEQUENTLY DECLINED TO REDUCE THE JURY'S BIG AWARD KEMPER HAS SINCE BEEN APPEALING THE CASE KEMPER ALSO NOTED YESTERDAY THAT IT HAD REACHED SETTLEMENT WITH CONTI CUSTOMERS WHO HAD FILED SEPARATE LITIGATION ON THE MATTER THAT CASE HADN'T YET GONE TO TRIAL KEMPER ALSO REACHED AN OUT OF COURT SETTLEMENT OF A LAWSUIT FILED BY CHRISTIAN MUTUAL LIFE INSURANCE COMPANY OF CONCORD N. H. THAT SUIT INVOLVED THE COLLAPSE OF A PLAN BY WHICH LIBERTY UNIVERSITY OF LYNCHBURG VIRGINIA WAS TO ISSUE THE BONDS WITH KEMPER AS UNDERWRITER THE NINETEEN NINETY OFFERING FAILED TO FIND BUYERS SUBSEQUENTLY CHRISTIAN MUTUAL WHICH HAD LENT MONEY TO LIBERTY EXPECTING TO BE REPAID FROM THE PROCEEDS ALLEGED IN ITS COMPLAINT THAT KEMPER HAD MISREPRESENTED ITS INTENTIONS REGARDING THE OFFERING TRIAL IN THAT CASE HAD BEEN UNDER WAY IN STATE COURT IN NEW HAMPSHIRE BUT HADN'T YET GONE TO THE JURY KEMPER POINTED OUT THAT LIBERTY UNIVERSITY'S CLAIM IN THE MATTER HAD GONE TO ARBITRATION IN NINETEEN NINETY TWO AND THAT A PANEL HAD RULED IN KEMPER'S FAVOR THE SETTLEMENTS REMOVE UNCERTAINTIES THAT KEMPER FACED FOR NEARLY TWO YEARS SAID A COMPANY OFFICIAL SEPARATELY KEMPER SAID THAT IT SOLD ITS MINORITY HOLDING IN CENTRE REINSURANCE HOLDINGS LIMITED TO MAJORITY HOLDER ZURICH INSURANCE COMPANY AS A RESULT KEMPER SAID IT WILL REALIZE IN THE JUST ENDED FOURTH QUARTER A GAIN OF THIRTY SEVEN POINT EIGHT MILLION DOLLARS OR ABOUT ONE DOLLAR AND FIFTEEN CENTS A SHARE THE COMPANY ALSO SAID THAT IT HAS REFINANCED CERTAIN MORTGAGE LOANS AND OTHER REAL ESTATE INVESTMENTS IN THE PROCESS REDUCING ITS REAL ESTATE RELATED INVESTMENTS BY ABOUT FIFTEEN PERCENT SUCH INVESTMENTS STOOD AT ONE POINT SEVEN BILLION DOLLARS AS OF SEPTEMBER THIRTIETH PROCEEDS OF THE REFINANCING WERE REINVESTED IN INVESTMENT GRADE SECURITIES THE COMPANY SAID THE ACTION ENHANCES ITS LIFE INSURANCE SUBSIDIARIES' LIQUIDITY 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 WITH STOCK MARKETS AT RECORD HIGHS A LOT OF INVESTORS ARE THINKING ABOUT HOW TO PROTECT THEIR NEST EGGS FROM A POSSIBLE DOWNTURN BUT MANY OF THOSE WEALTHY ENOUGH TO AFFORD MINIMUM INVESTMENTS OF FIVE HUNDRED THOUSAND DOLLARS OR MORE ARE TAKING ACTION THEY ARE ENTRUSTING THEIR MONEY OR AT LEAST A HEFTY CHUNK OF IT TO INVESTMENT MANAGERS WHO RUN PRIVATE PARTNERSHIPS REASSURINGLY KNOWN AS QUOTE HEDGE FUNDS QUOTE HEDGE FUNDS WHICH ARE POPULARLY ASSOCIATED WITH SUCH INVESTMENT LUMINARIES AS GEORGE SOROS MICHAEL STEINHARDT AND JULIAN ROBERTSON GOT THEIR NAME BECAUSE MANAGERS CAN HEDGE THEIR BETS WITH STRATEGIES AIMED AT PROTECTING INVESTORS AGAINST A MARKET CORRECTION AND EVEN MAKING MONEY IN A BEAR MARKET WE ARE TRYING TO BALANCE RISK FROM EVERY POSSIBLE ANGLE FOR OUR CLIENTS BY USING A WIDE ARRAY OF STRATEGIES NOT AVAILABLE TO TRADITIONAL MANAGERS SAYS E. LEE HENNESSEE DIRECTOR OF THE HEDGE FUND SELECT GROUP OF REPUBLIC NEW YORK SECURITIES CORPORATION IT'S EASY TO UNDERSTAND THE APPEAL SOME SUPERSTAR MANAGERS SUCH AS MR. SOROS OF QUANTUM FUND MR. STEINHARDT OF STEINHARDT PARTNERS AND MR. ROBERTSON OF TIGER FUND PRODUCE BIG RETURNS YEAR AFTER YEAR FOR NINETEEN NINETY THREE FOR EXAMPLE FUNDS RUN BY GEORGE SOROS AVERAGED A SEVENTY THREE PERCENT GAIN BEFORE INCENTIVE FEES AND MR. ROBERTSON'S TIGER FUND HAD A SEVENTY FOUR PERCENT GROSS RETURN BEFORE FEES BUT HEDGE FUNDS CAN ALSO MEAN BIG RISKS INDEED SOME INVESTMENT PROS SAY THAT FAR FROM BEING THE SAFE HARBORS CONJURED UP BY THE NAME HEDGE FUND THESE INVESTMENTS ARE REALLY HIGH STAKES GAMBLES ON GUNSLINGER MANAGERS THEY PLACE BIG BETS AND THESE CAN BE IN ANY DIRECTION SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS MR. MARKESE SAYS HE'S NEVER SEEN A STUDY OF HEDGE FUNDS THAT INCLUDES THE ADDED RISK THEY TAKE TO ACHIEVE THEIR HIGHER RETURNS HEDGE FUNDS ARE NOT APPROPRIATE FOR A LOT OF PEOPLE SAYS STEVE JANACHOWSKI PARTNER IN THE SAN FRANCISCO INVESTMENT MANAGEMENT FIRM OF BROUWER AND JANACHOWSKI QUOTE THEY TRADE ON MARGIN THEY ARE HIGHLY LEVERAGED AND THEY TAKE BIG POSITIONS THEY EITHER PAY OFF OR GET HAMMERED EVEN MS. HENNESSEE DOESN'T RECOMMEND THAT WEALTHY INVESTORS PUT ALL THEIR MONEY IN HEDGE FUNDS INSTEAD SHE SAYS THEY ARE APPROPRIATE FOR JUST A PORTION OF ONE'S ASSETS AS A WAY TO GET INCREASED DIVERSIFICATION CONSULTANTS SAY FORTY BILLION DOLLARS IS INVESTED IN HEDGE FUNDS AND THERE MAY BE EIGHT HUNDRED TO ONE THOUSAND OF THESE FUNDS IN OPERATION DOUBLE THE NUMBER OF A FEW YEARS AGO TWO OR THREE HEDGE FUNDS ARE OPENING UP EACH WEEK SAYS BUDGE COLLINS PRESIDENT OF COLLINS ASSOCIATES A NEWPORT BEACH CALIFORNIA PENSION CONSULTANT AND INVESTMENT MANAGER HEDGE FUNDS HAVE BECOME CHIC SAYS MICHAEL STOLPER A SAN DIEGO CONSULTANT WHO HELPS WEALTHY INDIVIDUALS PICK MONEY MANAGERS THEY ARE ANOTHER CLUB YOU CAN BELONG TO IF YOU ARE AFFLUENT AND OTHER PEOPLE CAN'T BUT THIS IS A CLUB IN WHICH THE INVESTOR MUST TRUST THE FUND MANAGER IN A HEDGE FUND THE MANAGER HAS VIRTUALLY TOTAL POWER TO INVEST YOUR MONEY IN ANYTHING AND ANY WAY HE OR SHE PLEASES THAT INCLUDES SHORT SALES IN WHICH THE MANAGER SEEKS TO PROFIT FROM AN ANTICIPATED PRICE DECLINE BY SELLING BORROWED SHARES EVENTUALLY SHARES MUST BE BOUGHT TO REPLACE THE BORROWED ONES BUT IF THE PRICE FALLS BEFORE THEN THE SHORT SELLER PROFITS HEDGE FUNDS ALSO BUY DERIVATIVES ESOTERIC FINANCIAL ARRANGEMENTS WHOSE RETURNS ARE LINKED TO OR DERIVED FROM THE PERFORMANCE OF SUCH THINGS AS INTEREST RATES CURRENCIES STOCKS OR COMMODITIES THEN THERE ARE FUTURES AND OPTIONS AND OVERSEAS INVESTMENTS IN COUNTRIES YOU'VE NEVER EVEN HEARD OF AND THE MANAGER CAN LEVERAGE YOUR RISK BY BORROWING MONEY TO INVEST ON MARGIN SAYS MR. STOLPER THE SAN DIEGO CONSULTANT THERE'S NO SECRET TO HOW THEY DO IT THEY LEVERAGE AND CONCENTRATE THEIR INVESTMENTS TO GET RETURNS UP BUT BOTH THESE STRATEGIES ARE TWO EDGED SWORDS QUOTE FURTHERMORE YOU WILL RARELY IF EVER SEE THE NAMES OF THE STOCKS BONDS SHORT SALES CURRENCIES AND OTHER INVESTMENTS IN YOUR ACCOUNT PROS SAY YOUR INFORMATION WILL OFTEN CONSIST MERELY OF A LETTER LISTING THE QUARTERLY RATE OF RETURN ON YOUR INVESTMENT A K. ONE STATEMENT OF INFORMATION FOR YOUR INCOME TAX RETURN AND AN ANNUAL AUDITED FINANCIAL STATEMENT YOU'VE ALSO GOT TO SHARE YOUR PROFITS WITH YOUR MANAGER THE TYPICAL HEDGE FUND MANAGER NOT ONLY GETS A ONE PERCENT MANAGEMENT FEE BUT ALSO TAKES A HEFTY TWENTY PERCENT SLICE OF THE PROFITS THE LURE OF A BIG PAYOFF ATTRACTS THE BEST AND THE BRIGHTEST OF THE INVESTMENT WORLD SAYS DONALD J. HARDY DIRECTOR OF RUSSELL PRIVATE INVESTMENT SERVICES A TACOMA WASHINGTON INVESTMENT CONSULTING FIRM THE START OF THE YEAR IS CRUCIAL FOR MANY HEDGE FUND INVESTORS BECAUSE IF THEY WANT TO ENTER OR EXIT A FUND THEY OFTEN MUST DO IT ON THE FIRST BUSINESS DAY OF THE YEAR SAYS PETER DECICCO PRESIDENT OF PORTFOLIO MANAGEMENT RESOURCES INCORPORATED A FAIRFIELD IOWA CONSULTING FIRM THAT SELECTS AND EVALUATES HEDGE FUND MANAGERS BUT ONLY A FEW WEALTHY INDIVIDUALS WITH IMPECCABLE CONNECTIONS CAN INVEST WITH THE SUPERSTARS BECAUSE HEDGE FUNDS ARE LIMITED PARTNERSHIPS THAT AREN'T REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION THEY ARE LIMITED TO NINETY NINE INVESTORS EACH AND INVESTMENT POSITIONS WITH THE SUPERSTARS ARE FILLED MINIMUMS OFTEN ARE TEN MILLION DOLLARS WITH THE STAR FUNDS AND YOU MAY HAVE TO LOCK UP YOUR MONEY FOR THREE YEARS INSTEAD OF ONE SOME PROS DON'T THINK THE TYPICAL WELL OFF INVESTOR IS GOING TO BE INVESTING WITH A TOP PERFORMER LET ALONE A SUPERSTAR OF THE HUNDREDS OF HEDGE FUND MANAGERS MAYBE THIRTY ARE EXTRAORDINARY AND THE REST ARE DESTINED FOR MEDIOCRITY OR WORSE SAYS MR. STOLPER STILL STUDIES BY HEDGE FUND CONSULTANTS SHOW THAT THE AVERAGE HEDGE FUND MANAGER THEY TRACK BEATS THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX AND THE AVERAGE GROWTH MUTUAL FUND MANAGER REPUBLIC NEW YORK'S MS. HENNESSEE REPORTED THAT AFTER INCENTIVE FEES THE AVERAGE HEDGE FUND IN HER UNIVERSE OF FUNDS RETURNED NINETEEN PERCENT ANNUALLY FROM NINETEEN EIGHTY SEVEN THROUGH NINETEEN NINETY TWO THAT OVERSHADOWS A YEARLY TOTAL RETURN OF FOURTEEN POINT SEVEN PERCENT BY THE S. AND P. FIVE HUNDRED AND FOURTEEN PERCENT FOR THE AVERAGE GROWTH MUTUAL FUND MANAGER MS. HENNESSEE'S UNIVERSE OF FUNDS RANGED FROM ONE HUNDRED ELEVEN HEDGE FUNDS IN NINETEEN EIGHTY SEVEN TO THREE HUNDRED SIXTY TWO FUNDS IN NINETEEN NINETY TWO HEDGE FUNDS SOUNDLY OUTPERFORMED THE COMPETITION IN THE TWO RECENT ROUGH YEARS FOR INVESTORS NINETEEN EIGHTY SEVEN FOURTEEN POINT FIVE PERCENT VERSUS FIVE POINT TWO PERCENT FOR THE S. AND P. AND NINETEEN NINETY TEN POINT NINE PERCENT VERSUS A NEGATIVE THREE POINT FOUR PERCENT FOR THE S. AND P. MS. HENNESSEE SAYS THROUGH SEPTEMBER THIRTIETH OF LAST YEAR THE LATEST AVAILABLE NUMBERS THE AVERAGE HEDGE FUND FOLLOWED BY RUSSELL PRIVATE INVESTMENT SERVICES RETURNED SIXTEEN POINT EIGHT PERCENT UP SHARPLY FROM THE SEVEN POINT FIVE PERCENT TOTAL RETURN OF THE S. AND P. FIVE HUNDRED SAYS MR. HARDY STILL SOME INVESTMENT PROS AREN'T CONVINCED MR. JANACHOWSKI THE SAN FRANCISCO INVESTMENT ADVISER WONDERS HOW REPRESENTATIVE THE FUNDS IN THE STUDY ARE OF THE WHOLE GROUP OF HEDGE FUNDS IT'S A SELF SELECTING UNIVERSE HE SAYS THESE FUNDS DON'T HAVE TO REPORT THEIR RESULTS SO MANAGERS WHO DON'T DO WELL MAY NOT REPORT OR THEY SIMPLY GO OUT OF BUSINESS BECAUSE THEY CONCENTRATE THEIR INVESTMENTS AND USE LEVERAGE AND SHORT SALES INVESTMENT RETURNS FROM SOME HEDGE FUNDS CAN VARY MUCH MORE THAN THE TYPICAL MUTUAL FUND PROS SAY FOR EXAMPLE ONE FUND EXPERIENCED A TWENTY ONE PERCENT LOSS IN THE MONTH OF FEBRUARY ALONE SAYS ONE CONSULTANT ANOTHER FUND RACKED UP A SEVENTEEN PERCENT RETURN IN THE MONTH OF MAY FOR PEOPLE WHO HAVE THE STOMACH AND THE WALLET FOR HEDGE FUND INVESTING IT'S PROBABLY WORTH PAYING FOR A CONSULTANT TO SELECT AND MONITOR SEVERAL HEDGE FUNDS INVESTMENT ADVISERS SAY FEES VARY SOME BROKERS CHARGE NO FEES BUT GET COMPENSATED WHEN THE HEDGE FUND MANAGER BUYS AND SELLS STOCKS AND OTHER INVESTMENTS THROUGH THE BROKER'S FIRM CREATING THE POTENTIAL FOR A CONFLICT OF INTEREST SOME CONSULTANTS CHARGE A PERCENTAGE OF ASSETS MANAGED MR. DECICCO OF PORTFOLIO MANAGEMENT RESOURCES FOR EXAMPLE CHARGES FEES OF LESS THAN ONE PERCENT ON LARGE ACCOUNTS HE SAYS ANOTHER APPROACH IS TO BUY A DIVERSIFIED FUND OF HEDGE FUNDS SEVERAL CONSULTANTS OFFER THESE INVESTMENTS MINIMUM INVESTMENT REQUIREMENTS IN THESE FUNDS USUALLY IS LOWER ABOUT TWO HUNDRED FIFTY THOUSAND DOLLARS AND IT'S UP TO THE CONSULTANT TO HIRE AND FIRE HEDGE FUNDS IN THE FUND FOR THIS SERVICE CONSULTANTS OFTEN CHARGE ONE PERCENT OF ASSETS MANAGED SOME CHARGE INCENTIVE FEES ON TOP OF THIS HERE TOO INVESTORS NEED SHARP ANALYSIS BECAUSE THEY ARE ADDING ANOTHER LAYER OF MANAGEMENT FEES TO FEES CHARGED BY THE FUNDS ALREADY UNLESS YOU'RE CAREFUL THIS APPROACH IS GOING TO MAKE THE THREE PERCENT WRAP FEES CHARGED BY SOME BROKERS ON THEIR MONEY MANAGEMENT ACCOUNTS LOOK LIKE A BARGAIN MR. STOLPER SAYS ALL NIGHT LONG KAREN DELLINGER HUDDLED WITH HER CHILDREN IN A SMALL VISITORS' LOUNGE AT THE UNIVERSITY OF VIRGINIA HOSPITAL PRAYING THAT HER HUSBAND WILBUR WOULDN'T DIE AT THREE THIRTY A. M. A DOCTOR EMERGED FROM THE INTENSIVE CARE UNIT TO CONFIRM THAT MR. DELLINGER HAD A BRAIN HEMORRHAGE AND NEEDED SURGERY HOURS LATER ANOTHER DOCTOR OFFERED A TANTALIZING CHOICE AN EXPERIMENTAL DRUG WAS BEING TESTED ON PATIENTS THOUGH UNPROVEN IN HUMANS IT HAD REDUCED POTENTIALLY FATAL COMPLICATIONS IN ANIMALS SHORTLY AFTER BRAIN HEMORRHAGES MRS. DELLINGER ASKED IF SHE WANTED HER FIFTY ONE YEAR OLD HUSBAND TO ENTER THE STUDY SEIZED THE CHANCE QUOTE IT WAS A MATTER OF LIFE AND DEATH QUOTE SHE SAYS QUOTE OF WHETHER HE WOULD EVER REGAIN HIS FACULTIES QUOTE LIKE THE DELLINGERS HUNDREDS OF PATIENTS AND THEIR DOCTORS AT VARIOUS MEDICAL CENTERS ARE WAITING ANXIOUSLY TO SEE WHETHER THE DRUG TIRILAZAD MESYLATE WORKS THEY ARE TESTING IT AS PART OF A LARGE SCALE CLINICAL TRIAL A COSTLY STRESSFUL PROCESS IN WHICH DRUG COMPANIES GATHER DATA THAT THE FOOD AND DRUG ADMINISTRATION USES TO DECIDE WHICH PROPOSED PRESCRIPTION DRUGS ARE SAFE AND EFFECTIVE ENOUGH FOR SALE AND WHICH AREN'T HUMAN DRUG TRIALS ARE CRUCIAL TO PHARMACEUTICAL COMPANIES SUCH AS UPJOHN COMPANY WHICH MAKES TIRILAZAD LAST YEAR ABOUT TWO THOUSAND COMPOUNDS WERE TESTED ON AT LEAST SIX HUNDRED FIFTY THOUSAND PATIENTS IN THE U. S. ALONE THE NATIONAL INSTITUTES OF HEALTH ESTIMATES DRUG COMPANIES SPENT NEARLY THREE BILLION DOLLARS ON HUMAN TRIALS THE BIGGEST CHUNK OF THEIR RESEARCH AND DEVELOPMENT BUDGETS BUT NEW PRESSURES MAKE IT HARDER TO CARRY OUT A DRUG TRIAL QUICKLY AND AFFORDABLY OR EVEN AT ALL BIG TRIALS NOW CAN COST FIFTY MILLION DOLLARS AND INVOLVE LOGISTICS AS FRENETIC AS SHOOTING A MOVIE WITH BOTH PRESIDENT CLINTON AND BIG INSURERS PUSHING HARD FOR DRUG PRICE CONTROLS PHARMACEUTICAL COMPANIES ARE HAVING A MUCH TOUGHER TIME ABSORBING SUCH EXPENSES IN THE PAST DRUG COMPANIES HAVEN'T REALLY BEEN HAMPERED BY RISING COSTS SAYS LOUIS LASAGNA A DRUG DEVELOPMENT EXPERT AT TUFTS UNIVERSITY BUT NOW THE INDUSTRY IS RUNNING SCARED RESEARCH AND DEVELOPMENT BUDGETS ARE GOING TO BE CUT BACK AND THAT'S BOUND TO HAVE AN IMPACT ON CLINICAL TRIALS AND JUST AS THE DRUG INDUSTRY ENTERS AN ERA OF RETRENCHMENT THE BATTLE FOR CONTROL OF TRIALS IS HEATING UP DOCTORS SCIENTISTS REGULATORS AND DRUG COMPANY EXECUTIVES REPEATEDLY CLASH OVER TURF AND ISSUES AS VITAL AS PATIENTS' LIVES OR THE INTEGRITY OF A MULTIYEAR PROJECT THE HIGH STAKES TURN EVEN A MINOR SQUABBLE INTO A DRAWN OUT TEST OF WILLS A LOOK AT TIRILAZAD'S JOURNEY FROM LAB TO PATIENT SHOWS HOW THESE HOPES AND FRUSTRATIONS INTERTWINE THE STORY STARTS AT UPJOHN'S LABS IN KALAMAZOO MICHIGAN IN THE EARLY NINETEEN EIGHTIES SCIENTISTS HAD DISCOVERED A CASCADE REACTION IN WHICH DYING BRAIN CELLS RELEASE FREE RADICALS A HIGHLY REACTIVE CLASS OF MOLECULES THAT ARE MISSING AN ELECTRON AND THAT GO ON TO DAMAGE HEALTHY BRAIN CELLS NEARBY IF A NEW DRUG COULD STOP THIS CASCADE SCIENTISTS BELIEVED IT COULD HELP HUNDREDS OF THOUSANDS OF STROKE AND HEAD INJURY VICTIMS EVERY YEAR BY THE MID NINETEEN EIGHTIES UPJOHN HAD SOME PROMISING CANDIDATES WHEN A MOUSE THAT HAD RECEIVED A TEST COMPOUND BEGAN WIGGLING AFTER RESEARCHERS HAD GIVEN IT UP FOR DEAD UPJOHN DECIDED TO CALL ITS POTENTIAL NEW DRUGS LAZAROIDS AFTER THE BIBLICAL LAZARUS BUT BEFORE UPJOHN COULD TEST THEM ON PEOPLE IT NEEDED HELP FROM LEADING RESEARCH DOCTORS AROUND THE U. S. SO IN NINETEEN EIGHTY SIX WHILE ANIMAL TRIALS WERE UNDER WAY UPJOHN SENT ONE OF ITS EMPLOYEES TO VISIT NEAL KASSELL A NEUROSURGEON AT THE UNIVERSITY OF VIRGINIA TO SEE WHETHER HE WANTED TO STUDY THE MOST PROMISING OF THE LAZAROIDS TIRILAZAD THE TALKS STARTED OFF BADLY UPJOHN WANTED TO FOCUS ON TREATING THE MOST COMMON TYPE OF STROKE ISCHEMIC STROKE WHICH IS CAUSED BY A BLOOD FLOW STOPPAGE IN PART OF THE BRAIN AND AFFLICTS FOUR HUNDRED THOUSAND AMERICANS A YEAR DOCTOR KASSELL WASN'T INTERESTED HE SPECIALIZED IN A RARER STROKE SUBARACHNOID HEMORRHAGES WHICH INVOLVE BLEEDING BETWEEN THE BRAIN AND THE SKULL AND HIT ONLY THIRTY THOUSAND PATIENTS A YEAR BUT AS THE TALKS CONTINUED A POSSIBLE NEW USE OF TIRILAZAD EMERGED MOST HEMORRHAGE PATIENTS UNDERGO PROMPT BRAIN SURGERY WHICH CAN HELP GREATLY AT FIRST BUT STILL LEAVES A RISK OF VASOSPASM A POTENTIALLY FATAL CONSTRICTION OF BLOOD VESSELS IN THE BRAIN ABOUT NINE DAYS AFTER THE INITIAL HEMORRHAGE DOCTORS IN THE MID NINETEEN EIGHTIES USED VARIOUS DRUGS TO WARD OFF VASOSPASM WITH LIMITED SUCCESS AS DOCTOR KASSELL SAW IT TIRILAZAD MIGHT BE A POTENT NEW WAY OF CONTROLLING VASOSPASM AFTER SOME DICKERING UPJOHN AGREED TO WORK WITH DOCTOR KASSELL TO WIDEN THE POSSIBLE USES OF ITS DRUG IT WOULD PAY HIM AND HIS COLLEAGUES TO TEST TIRILAZAD ON RABBITS MONKEYS AND THEN HUMANS WITH HEMORRHAGES WHILE IT PURSUED THE ISCHEMIC STROKE MARKET WITH OTHER DOCTORS TIRILAZAD FACED LONG ODDS MORE THAN NINETY PERCENT OF PROMISING COMPOUNDS PROVE SO HARMFUL OR INEFFECTIVE IN ANIMALS THAT RESEARCHERS DROP THEM BUT TIRILAZAD LIVED UP TO HOPES IN ANIMAL STUDIES IN NINETEEN EIGHTY SEVEN AND NINETEEN EIGHTY EIGHT IT THEN FARED WELL IN SMALL SCALE TESTS ON HUMAN SUBJECTS A PROCESS THAT FLUNKS SIXTY PERCENT OF THE SURVIVING DRUGS IN EARLY NINETEEN NINETY TWO UPJOHN AND THE UNIVERSITY OF VIRGINIA WERE READY FOR THE FINAL ROUND OF PATIENT TRIALS THE COSTLIEST TOUGHEST STAGE CALLED PHASE THREE TESTING BY THE F. D. A. IT WOULD INVOLVE ABOUT TWO THOUSAND PATIENTS WORLD WIDE SPLIT ALMOST EVENLY BETWEEN THE U. S. AND FOREIGN COUNTRIES TO OVERSEE THE U. S. PART OF PHASE THREE UPJOHN AND THE UNIVERSITY SET UP DUAL BATTLE ROOMS IN KALAMAZOO AND CHARLOTTESVILLE RESEARCHERS INITIALLY COMMUNICATED VIA PUBLIC INTERNET LINKS BUT SOON SWITCHED TO PRIVATE COMPUTER LINES FOR SECURITY REASONS PLANNERS AT BOTH SITES MAPPED OUT A STRATEGY TO SIGN UP NEARLY SIXTY HOSPITALS FOR THE STUDY ENROLL PATIENTS COLLECT DATA AND THEN PREPARE AN F. D. A. FILING THAT MIGHT WELL FILL FIFTY SHIPPING CARTONS LIKE MOST DRUG MAKERS UPJOHN WANTED TO WORK WITH TOP TEACHING HOSPITALS WHICH HAVE PRESTIGE A STEADY FLOW OF PATIENTS AND THE ABILITY TO HANDLE THE PAPERWORK THAT COULD OVERWHELM A SMALL INSTITUTION THE UNIVERSITY OF VIRGINIA OFFERED ITS OWN MEDICAL CENTER AND HELPED RECRUIT DOCTORS AT BIG NAME CENTERS SUCH AS JOHNS HOPKINS HOSPITAL AND THE MAYO CLINIC WITH SUCH CENTERS HOWEVER CAME SOME PROBLEMS AN EARLY BLOWUP INVOLVED PLANS FOR DOCTORS TO MONITOR PATIENTS' TOTAL TREATMENT COST INCLUDING ANY POST HOSPITAL CARE SUCH DATA COULD HELP UPJOHN SHOW LATER THAT TIRILAZAD WAS COST EFFECTIVE EVEN AT A POSSIBLE PRICE OF ONE THOUSAND FIVE HUNDRED DOLLARS OR MORE FOR THE FORTY DOSES THAT PATIENTS WOULD NEED BUT SOME DOCTORS BALKED AT THE BOOKKEEPING I'M SURE ALL THAT COST INFORMATION IS IMPORTANT BUT I TOLD THEM I DON'T DO THAT SAYS EUGENE FLAMM A NEUROSURGEON AT THE UNIVERSITY OF PENNSYLVANIA QUOTE I'M INTERESTED ONLY IN THE TREATMENT OF VASOSPASM QUOTE UPJOHN AND DOCTOR KASSELL'S AIDES URGED HIM TO RELENT HE DIDN'T I TOLD THEM I'M JUST BEING MY USUAL CANTANKEROUS SELF DOCTOR FLAMM RECALLS ULTIMATELY UPJOHN LET DOCTOR FLAMM SKIP THE COST DATA TO UPJOHN WHICH PAYS A FIVE THOUSAND DOLLAR BOUNTY FOR EACH PATIENT ENROLLED IN THE STUDY THE DOCTORS' PICKINESS COULD BE ANNOYING BUT TO PHYSICIANS CLINICAL TRIALS ARE MEANT TO PROMOTE PATIENT CARE AND MEDICAL KNOWLEDGE TRIALS SHOULDN'T BE SWAYED BY A DRUG COMPANY'S MARKETING GOALS DAVID PIEPGRAS A MAYO CLINIC NEUROSURGEON SAYS HE DELAYED JOINING THE TRIAL BECAUSE IT SEEMED TO REQUIRE COSTLY POSSIBLY UNDESIRABLE ADDITIONS TO PATIENT TREATMENT RECRUITING PATIENTS BROUGHT MORE PROBLEMS THE TRIAL RULES SET BY THE UNIVERSITY OF VIRGINIA ALLOWED ANYONE AGE EIGHTEEN TO EIGHTY TO PARTICIPATE BUT THE PATIENTS COULDN'T BE PREGNANT OR SO ILL FROM OTHER DISEASES THAT THEY WERE LIKELY TO DIE DURING THE TRIAL RESEARCHERS THOUGHT THOSE RULES WERE BROAD ENOUGH THAT THEY COULD EASILY ENROLL NINE HUNDRED U. S. PATIENTS IN EIGHTEEN MONTHS THEY WERE WRONG ANOTHER RULE ALLOWED PATIENTS TO ENTER THE TRIAL ONLY IF THEY HAD SUFFERED A BRAIN HEMORRHAGE IN THE PAST FORTY EIGHT HOURS OTHERWISE TISSUE DAMAGE MIGHT BE TOO ADVANCED FOR TIRILAZAD TO HELP SUCH TIME LIMITS CAN SHARPLY LIMIT THE PATIENT POOL AND ENROLLMENT IN THE TRIAL FELL BEHIND SCHEDULE THE DELAYS GOT SO FRUSTRATING THAT NURSES IN CHARLOTTESVILLE ONCE CHEERED WHEN A HEMORRHAGE PATIENT ARRIVED WITHIN THE FORTY EIGHT HOUR LIMIT LATER THEY DECIDED SUCH OUTBURSTS SEEMED A BIT GHOULISH GETTING PATIENTS' PERMISSION PROVED THORNY TOO UNDER F. D. A. RULES PATIENTS OR THEIR CLOSE RELATIVES MUST READ AND SIGN AN INFORMED CONSENT FORM THAT SPELLS OUT POSSIBLE RISKS OF AN EXPERIMENTAL DRUG UNIVERSITY OF VIRGINIA RESEARCHERS BELIEVED TIRILAZAD'S SIDE EFFECTS WERE SO MINOR THAT IF AN UNCONSCIOUS PATIENT ARRIVED ALONE AT A HOSPITAL THE PATIENT COULD BE ENTERED IN THE TRIAL UNDER A DOCTRINE OF PRESUMED CONSENT THE PATIENT'S FAMILY COULD GIVE FORMAL APPROVAL LATER THAT APPROACH DIDN'T PLAY WELL AT OTHER HOSPITALS LOS ANGELES COUNTY HOSPITAL WHICH UPJOHN HAD BEEN COUNTING ON FOR MANY PATIENTS TOOK AN EXTRA YEAR TO DEVELOP A CONSENT FORM THAT IT REGARDED AS BETTER PROTECTING PATIENTS' RIGHTS MOSTLY BECAUSE OF THAT DELAY THE LOS ANGELES HOSPITAL HAS ENROLLED IN THE STUDY ONLY THREE PATIENTS FAR FEWER THAN EXPECTED YET TRIAL ADMINISTRATORS SAY THAT ONCE PATIENTS OR THEIR FAMILIES SEE THE CONSENT FORM THEY RARELY FORGO THE TRIAL TIRILAZAD'S KNOWN SIDE EFFECTS ARE MODEST RAISED LIVER ENZYMES IN SOME TEST ANIMALS AND MINOR ACHES IN SOME HUMANS I CAN'T THINK OF ANY CASE WHERE A PATIENT HAS REFUSED CONSENT SAYS LAURIE ELDER A UNIVERSITY OF VIRGINIA NURSE NOT ALL PATIENTS GET TIRILAZAD THOUGH ALL GET CONVENTIONAL CARE BUT SOME ALSO GET INTRAVENOUS DOSES OF THE EXPERIMENTAL DRUG WHILE OTHERS GET A PLACEBO STATISTICIANS LATER COMPARE THE TWO GROUPS TO MEET F. D. A. GUIDELINES UPJOHN ASSIGNS PATIENTS RANDOMLY SO THAT ONE GROUP DOESN'T START OUT HEALTHIER OR GET BETTER TREATMENT IT ALSO USES CODED PACKAGES TO MAKE TIRILAZAD AND THE PLACEBO INDISTINGUISHABLE TO TESTERS THAT QUOTE DOUBLE BLINDING QUOTE LETS UPJOHN MONITOR THE DRUG'S EFFECTS WITHOUT BEING LED ASTRAY BY GAINS DOCTORS AND PATIENTS HOPE IT IS CAUSING BUT DOCTORS AND NURSES OFTEN TRY TO GUESS WHO IS GETTING THE DRUG AT THE MAYO CLINIC NURSE NICOLEE FODE NOTICED THAT SEVERAL PATIENTS HAD MINOR IRRITATION AT THE ENTRY SITE OF THEIR THE FOURTH TUBE I THOUGHT AHA I'VE FIGURED IT OUT MS. FODE RECALLS BUT SHE LATER LEARNED THAT THE IRRITATION WAS CAUSED BY A CITRATE SOLUTION IN WHICH THE DRUG WAS MIXED AND THAT PLACEBO PATIENTS ALSO GOT THE CITRATE SOLUTION PATIENTS MEANWHILE FIND THEY BECOME NONSTOP DATA BANKS IN A TYPICAL TWO WEEK HOSPITALIZATION THEY GET FORTY DOSES OF TIRILAZAD UNDERGO TWENTY TWO BLOOD TESTS AND HAVE A TOTAL OF ONE HUNDRED SIXTY EIGHT ENZYMES AND BLOOD GASES ANALYZED EXTRA BRAIN SCANS AND NEUROLOGICAL TESTS ARE DONE NURSES MAY NEED A TROLLEY JUST TO WHEEL A SINGLE PATIENT'S RECORDS AROUND AT THE TIME MOST PATIENTS DON'T MIND WHEN MR. DELLINGER BEGAN HIS TIRILAZAD DOSAGE IN OCTOBER NINETEEN NINETY TWO HE WAS RECOVERING FROM A TEN HOUR BRAIN OPERATION TO HIS FAMILY'S DELIGHT HE BEGAN CHATTING ABOUT THAT DAY'S PRO FOOTBALL GAMES WHEN THE ANESTHETIC WORE OFF THOUGH WEAK AND GROGGY HE WASN'T COMPLAINING I KNEW I WAS ONE OF THE LUCKY ONES HE SAYS BUT THE QUEST FOR DATA CAN INFRINGE ON PATIENT CARE MAYO CLINIC'S DOCTOR PIEPGRAS BALKED AT REQUESTS TO LEAVE INTRAVENOUS LINES IN ALL PATIENTS FOR TWO WEEKS ANY THE FOURTH LINE CAN CAUSE IRRITATION AND BLOOD CLOTS HE OBSERVES ADDING THAT IT SEEMED TO BE AN UNNECESSARY RISK FOR PATIENTS WHO HAD RECOVERED FAST HE PERSUADED UPJOHN AND THE UNIVERSITY OF VIRGINIA TO LET HIM DISCHARGE HEALTHY PATIENTS AHEAD OF SCHEDULE EVEN IF FULL DATA HADN'T BEEN GATHERED AFTER PATIENTS' HEALTH STABILIZES AND THEY LEAVE THE HOSPITAL MANY OF THEM AND THEIR FAMILIES ASK MORE QUESTIONS ALTHOUGH MR. DELLINGER RECOVERED ENOUGH TO RETURN TO WORK AS A SALES MANAGER FOR A FOOD WHOLESALER HIS WIFE SAYS SHE OFTEN WONDERS WHETHER HE GOT TIRILAZAD OR THE PLACEBO BUT THE HOSPITAL ISN'T VOLUNTEERING THE INFORMATION NOR THAT THE DELLINGERS COULD FIND OUT BY FILING A WRITTEN REQUEST THAT IT WOULD FORWARD TO UPJOHN OF GREATER CONCERN IS WHETHER DOCTORS CAN SPOT ANY PATIENT BEING HURT BY A TRIAL DRUG AND WITHDRAW IT IN TIME HAUNTING RESEARCHERS IS THE CASE OF FIALURIDINE AN ELI LILLY AND COMPANY COMPOUND MEANT TO FIGHT HEPATITIS B. FIVE PATIENTS DIED IN TRIALS BEFORE RESEARCH WAS HALTED LAST JUNE IN THE TIRILAZAD STUDY NURSES COLLECT HOURLY DATA ON EACH PATIENT AND DOCTORS CAN STOP USING THE DRUG AT ANY TIME MEANWHILE A SAFETY COMMITTEE OF INDEPENDENT STATISTICIANS AND DOCTORS REVIEWS PATIENT DEATHS AND MAJOR COMPLICATIONS THE PANEL RUN BY UNIVERSITY OF TORONTO NEUROSURGEON CHARLES DRAKE CAN BREAK THE ANONYMOUS CODE FOR ANY PATIENT OR STOP THE ENTIRE TRIAL IF PATIENT HEALTH APPEARS AT RISK SO FAR NO SUCH PROBLEM HAS OCCURRED DOCTOR DRAKE SAYS STILL AHEAD FOR UPJOHN IS THE F. D. A.'S REVIEW OF PATIENT DATA IF REGULATORS CONSIDER TIRILAZAD SAFE AND EFFECTIVE THEY CAN APPROVE IT IF DOUBTFUL THEY CAN ASK FOR MORE DATA OR REJECT THE DRUG ENTIRELY SUCH REVIEWS INEVITABLY ARE FILLED WITH TENSION REGULATORS WANT TO KEEP DANGEROUS OR POORLY DOCUMENTED DRUGS OFF THE MARKET AND THEY APPROACH EACH NEW FILING WITH SKEPTICISM DRUG COMPANIES ARE ADVOCATES OBSERVES ROBERT TEMPLE AN F. D. A. OFFICIAL IN CHARGE OF NEW DRUG APPROVALS QUOTE THAT DOESN'T MEAN THAT THEY ARE LIARS BUT THEY ARE ADVOCATES DRUG DEVELOPERS IN TURN FEEL BURDENED BY A SYSTEM IN WHICH REGULATORS HAVE LITTLE TO GAIN BY PROMPTLY APPROVING A GOOD DRUG BUT MUCH TO LOSE IF A BAD ONE SLIPS THROUGH CONVINCED THAT THE TINIEST RECORD KEEPING FLAW MIGHT ATTRACT THE F. D. A.'S SUSPICION NURSES AND STATISTICIANS AT THE UNIVERSITY OF VIRGINIA FRET OVER DATA ALMOST OBSESSIVELY SOME MATERIAL ENTERING MASTER FILES IS CHECKED SIXTY ONE TIMES ALONG THE WAY SAYS NURSE NANCY TISDALE ESPECIALLY FRANTIC SCRAMBLES INVOLVE PATIENTS WHO START A STUDY BUT DON'T STAY TILL THE END DROPOUTS ARE A PLAGUE OF ANY STUDY THE F. D. A.'S DOCTOR TEMPLE SAYS ONE CAN'T TELL WHETHER THE SICKEST OR THE HEALTHIEST PATIENTS ARE DISAPPEARING HE SAYS AS A RESULT HIGH DROPOUT RATES JEOPARDIZE ANY STATISTICAL CONCLUSIONS FROM A STUDY SO NURSES AT EACH HOSPITAL STRIVE TO MAKE SURE THAT SUBJECTS DON'T DISAPPEAR EVEN AFTER THEY ARE DISCHARGED A SAN DIEGO HOSPITAL TRACKED DOWN ONE EX PATIENT IN MEXICO CITY AND PAID FIVE HUNDRED DOLLARS FOR HIM TO BE DRIVEN BACK TO THE U. S. FOR A FOLLOW UP EXAM AND AN EAST COAST NURSE FOUND A WAY TO SIPHON DATA FROM UNITED PARCEL SERVICE TO TRACK DOWN FORMER PATIENTS WHO HAVE MOVED I'M NOT SURE IT'S TOTALLY LEGAL THE NURSE SAYS BUT IT WORKS NOW UPJOHN IS STRAINING TO GET TIRILAZAD BEFORE THE F. D. A. THE DRUG'S SEVENTEEN YEAR PATENT IS ALREADY MORE THAN A YEAR OLD AND EVEN THE MOST OPTIMISTIC ANALYSTS THINK IT WILL TAKE FAST WORK IF TIRILAZAD IS TO BE APPROVED IN THE U. S. THIS YEAR THE NON U. S. STUDY OF HEMORRHAGE PATIENTS WAS COMPLETED LAST SUMMER AND SHOWED SIZABLE GAINS FOR PATIENTS GETTING TIRILAZAD BUT THE U. S. STUDY A CRUCIAL PART OF ANY F. D. A. FILING ISN'T EXPECTED TO END UNTIL JUNE SIX MONTHS BEHIND SCHEDULE AS WORD OF THE OVERSEAS STUDY REACHED WALL STREET LAST FALL ANALYSTS VOICED GROWING OPTIMISM ABOUT TIRILAZAD WHICH UPJOHN CALLS FREEDOX IT'S SIMPLY A MATTER OF TIME FOR A BLOCKBUSTER DRUG TO EMERGE IN THIS CATEGORY SAYS SHERRY SAMOTIN AN ANALYST AT WILKERSON GROUP IN NEW YORK SHE REGARDS TIRILAZAD AS A FRONT RUNNER IN A RACE WITH HALF A DOZEN DRUG COMPANIES BUT TO PEOPLE WORKING TO GET TIRILAZAD TO MARKET A RACE IS THE WRONG ANALOGY THEY SEE IT MORE AS A TUG OF WAR OR ARM WRESTLING MATCH WHAT I FIND MOST FASCINATING ABOUT THIS PROCESS ARE THE MULTIPLE LOGICS SAYS WAYNE ALVES HEAD OF NEUROCLINICAL TRIALS AT THE UNIVERSITY OF VIRGINIA QUOTE THERE'S A MEDICAL LOGIC A REGULATORY LOGIC A DRUG DEVELOPMENT LOGIC AND A SCIENTIFIC LOGIC ALL OF THEM MAKE SENSE IN THEIR OWN WORLDS BUT ALL THESE COMPETING LOGICS HAVE TO BE TRADED OFF IF A TRIAL IS EVER GOING TO BE COMPLETED NEW OFFERINGS OF CLOSED END INVESTMENT FUNDS NUMBERED A RECORD ONE HUNDRED TWENTY THREE IN NINETEEN NINETY THREE BUT RAISED LESS MONEY OVERALL THAN THE PRIOR YEAR CLOSED END STOCK AND BOND FUNDS TOGETHER RAISED SEVENTEEN POINT FOUR THREE BILLION DOLLARS THAT WAS BEHIND NINETEEN NINETY TWO'S RECORD OF SEVENTEEN POINT NINE EIGHT BILLION DOLLARS FROM NINETY NINE OFFERINGS THE DECLINE REFLECTS A DROP IN MUNICIPAL BOND FUND OFFERINGS DEMAND DECLINED SHARPLY FOR CLOSED END MUNI FUNDS IN THE FOURTH QUARTER ONLY FIVE NEW OFFERINGS WERE PRICED COMPARED WITH TWENTY THREE IN THE NINETEEN NINETY TWO QUARTER OF THE YEAR'S TOTAL EQUITY FUNDS RAISED TWO BILLION DOLLARS THROUGH FOURTEEN OFFERINGS BOND FUNDS RAISED FIFTEEN POINT FOUR BILLION DOLLARS THROUGH ONE HUNDRED NINE OFFERINGS ACCORDING TO LIPPER ANALYTICAL SERVICES INCORPORATED CLOSED END FUNDS WHICH TRADE LIKE STOCKS CAN BE FOUND MOSTLY ON THE NEW YORK STOCK EXCHANGE IN TRADING AFTER THEIR OFFERINGS SOME OF THE CLOSED END FUNDS THAT INVEST IN EMERGING MARKETS HAVE BEEN ESPECIALLY STRONG PERFORMERS FOR EXAMPLE THE LATIN AMERICA INVESTMENT FUND MEXICO FUND MEXICO EQUITY AND INCOME FUND CHILE FUND AND MALAYSIA FUND ARE ALL TRADING MORE THAN FIFTY PERCENT ABOVE THE PAST YEAR'S LOWS INVESTORS REACTED TO THE STRONG OVERSEAS STOCK MARKETS BY BIDDING UP THE SHARE PRICES OF FOREIGN EQUITY CLOSED END FUNDS BECAUSE CLOSED END FUNDS TRADE ON EXCHANGES THEIR SHARE PRICES ARE SET BY SUPPLY AND DEMAND AND THEY CAN TRADE ABOVE OR BELOW THE PER SHARE VALUE OF THE FUNDS' PORTFOLIO OF INVESTMENTS SHARES THAT TRADE ABOVE THE FUNDS' NET ASSET VALUE ARE SAID TO BE AT A PREMIUM WHILE SHARES TRADING BELOW ARE AT A DISCOUNT AT THE END OF NINETEEN NINETY THREE FOREIGN CLOSED END STOCK FUNDS HAD SURGED TO A PREMIUM OF ELEVEN PERCENT ABOVE NET ASSET VALUE THAT PREMIUM WAS WELL ABOVE THE SLIGHT ONE POINT FOUR PERCENT PREMIUM OF THESE FUNDS ON SEPTEMBER THIRTIETH AND A BIG CHANGE FROM THE THREE POINT EIGHT PERCENT DISCOUNT ON AVERAGE AMONG THESE FUNDS AT THE END OF NINETEEN NINETY TWO ACCORDING TO LIPPER DOMESTIC STOCK FUNDS WALLOWED IN THE DEPTHS IN COMPARISON CLOSED END STOCK FUNDS INVESTING IN U. S. STOCKS ENDED THE YEAR AT A DISCOUNT OF FOUR POINT OH PERCENT FROM THE FUNDS' NET ASSET VALUE PER SHARE BARELY CHANGED FROM THE FOUR POINT ONE PERCENT DISCOUNT AT THE END OF NINETEEN NINETY TWO U. S. STOCK FUND DISCOUNTS ACTUALLY EXPANDED SLIGHTLY IN THE FOURTH QUARTER WIDENING FROM A THREE POINT SIX PERCENT DISCOUNT AT SEPTEMBER THIRTIETH CLOSED END BOND FUNDS FELL TO DISCOUNTS AT THE END OF NINETEEN NINETY THREE DOWN FROM SLIGHT PREMIUMS AT THE END OF NINETEEN NINETY TWO THE DISCOUNTS REFLECTED INVESTOR FEARS OF RISING INTEREST RATES WHICH HURT BOND PRICES MUNICIPAL BOND FUNDS FELL TO A DISCOUNT OF THREE POINT THREE PERCENT FROM A PREMIUM OF ONE POINT TWO PERCENT AT THE END OF NINETEEN NINETY TWO TAXABLE BOND FUNDS FELL TO A DISCOUNT OF ONE POINT THREE PERCENT COMPARED WITH A PREMIUM OF ONE POINT FIVE PERCENT AT THE END OF NINETEEN NINETY TWO PETER DARBEE WAS NAMED VICE PRESIDENT OF BOTH THIS TELEPHONE COMPANY AND ITS PACIFIC BELL UNIT MR. DARBEE FORTY YEARS OLD WAS ALSO NAMED CONTROLLER OF THE UNIT A NEW POSITION MR. DARBEE WAS FORMERLY A VICE PRESIDENT AND CO LEADER AT GOLDMAN SACHS AND COMPANY'S ENERGY AND TELECOMMUNICATIONS GROUP IN THE INVESTMENT BANKING SERVICES DEPARTMENT TRAVELING TO HONG KONG BOOK YOUR HOTEL EARLY AND PULL OUT YOUR WALLET IT'S A SELLER'S MARKET SOARING DEMAND FROM TOURISTS AND BUSINESS TRAVELERS COMBINED WITH A TIGHT SUPPLY OF ROOMS HAVE LIFTED AVERAGE HOTEL OCCUPANCY RATES HERE TO RECORD LEVELS WITH LITTLE NEW SUPPLY SCHEDULED FOR THE MARKET HOTEL EXECUTIVES AND ANALYSTS SAY ROOM RATES ARE LIKELY TO RISE WITH INCREASING VISITOR TRAFFIC AT LEAST FOR THE NEXT YEAR OR TWO NO MAJOR ADDITIONS ARE PLANNED FOR THE FOUR STAR AND FIVE STAR CATEGORY IN THE MIDRANGE MARKET ROOM SUPPLY IS ACTUALLY SHRINKING AS HOTELS THOUGH PROFITABLE ARE BEING REDEVELOPED TO MAKE WAY FOR HIGHER YIELDING OFFICE AND COMMERCIAL PROPERTIES EARLY LAST YEAR BANGKOK BASED BUSINESS CONSULTANT STEVE RASIN COULD WALK INTO THE LUK KWOK HOTEL NEAR HIS COMPANY'S HONG KONG OFFICE AND CHECK IN WITHOUT A RESERVATION BY MIDYEAR HE HAD TO BOOK TWO WEEKS IN ADVANCE IN OCTOBER EVEN THAT DIDN'T GET HIM A ROOM AT THE LUK KWOK OR OTHER HOTELS IN THE AREA SO MR. RASIN A SENIOR ASSOCIATE WITH TECHNOMIC CONSULTANTS INTERNATIONAL OF THE U. S. WHO VISITS HERE OFTEN HAD TO SETTLE FOR A HOTEL SEVERAL SUBWAY STOPS AWAY AND HE HAD TO PAY THIRTY PERCENT MORE FOR A SMALLER ROOM WITH NO DESK NO IN ROOM FAX MACHINE AND QUOTE NO SATELLITE TELEVISION YOU HAD TO PAY FOR MOVIES HE SAYS THIS IS GOING TO BE A FANTASTIC YEAR SAYS DARIO REGAZZONI VICE PRESIDENT OF OPERATIONS ASIA OF CONRAD HOTELS THE INTERNATIONAL ARM OF HILTON HOTELS CORPORATION OF THE U. S. AND GENERAL MANAGER OF THE CONRAD HONG KONG THE DELUXE HOTEL WHICH WAS NINETY PERCENT BOOKED IN OCTOBER HAD AN AVERAGE NINETEEN NINETY THREE OCCUPANCY RATE OF EIGHTY PERCENT HE SAYS THE OUTLOOK IS VERY ROSY ADDS RICHARD TADROS SENIOR VICE PRESIDENT AT HONG KONG BASED REGAL HOTELS INTERNATIONAL LIMITED WHICH OPERATES FOUR HOTELS IN THE COLONY OVERALL HONG KONG HOTELS ENJOYED AN AVERAGE OCCUPANCY RATE OF EIGHTY SEVEN PERCENT FOR THE FIRST ELEVEN MONTHS OF NINETEEN NINETY THREE THE LATEST PERIOD FOR WHICH FIGURES ARE AVAILABLE ACCORDING TO THE HONG KONG TOURIST ASSOCIATION THIS YEAR THE AVERAGE IS EXPECTED TO EXCEED NINETY PERCENT ACCORDING TO PEREGRINE BROKERAGE LIMITED WHICH RECENTLY PUBLISHED A STUDY OF ASIAN TOURISM THOSE NUMBERS SHOW HOW THE LAW OF SUPPLY AND DEMAND IS WORKING IN FAVOR OF HOTELS IN THE FIRST TEN MONTHS OF NINETEEN NINETY THREE SEVEN POINT FOUR MILLION PEOPLE MORE THAN HALF OF THEM TOURISTS VISITED HONG KONG UP THIRTEEN PERCENT FROM A YEAR EARLIER PEREGRINE FORECASTS GAINS OF FOURTEEN PERCENT THIS YEAR AND FIFTEEN PERCENT NEXT YEAR HOWEVER THE SUPPLY OF HOTEL ROOMS THE HKTA PROJECTS WILL GROW ONLY ABOUT FOUR POINT FIVE PERCENT DURING THE NEXT TWO YEARS THE RESULTING SQUEEZE PROMPTS HOTELIERS HERE TO PREDICT THAT ROOM RATES WILL CLIMB AS MUCH AS THIRTY PERCENT THIS YEAR AT THE POSH PENINSULA THE COLONY'S PRICIEST INN AND THE FLAGSHIP OF HONGKONG AND SHANGHAI HOTELS LIMITED'S PENINSULA GROUP THE PUBLISHED RATE FOR A DOUBLE ROOM NOW STANDS AT H. K. TWO THOUSAND FOUR HUNDRED FIFTY DOLLARS THREE HUNDRED SIXTEEN U. S. DOLLARS A NIGHT ROUGHLY THE SAME AS IN NINETEEN NINETY GENERAL MANAGER FELIX BIEGER WARNS HOWEVER THERE DEFINITELY WILL BE AN INCREASE IN NINETEEN NINETY FOUR DESPITE THE FACT THAT THE PENINSULA IS BUILDING A ONE HUNDRED THIRTY TWO ROOM EXTENSION SCHEDULED FOR COMPLETION LATER THIS YEAR AT THE CONRAD ONE OF THREE HOTELS ATOP THE UPMARKET PACIFIC PLACE MALL IN THE CENTRAL BUSINESS DISTRICT THE RATE FOR A DOUBLE WAS H. K. ONE THOUSAND FIVE HUNDRED THIRTY SIX DOLLARS LAST MONTH UP FORTY PERCENT FROM TWO YEARS EARLIER AND AT THE MIDRANGE CENTURY HONG KONG HOTEL A MEMBER OF HONG KONG BASED CENTURY INTERNATIONAL HOTELS GROUP THE SINGLE ROOM TARIFF ROSE IN SEPTEMBER TO H. K. ONE THOUSAND THREE HUNDRED DOLLARS FROM H. K. ONE THOUSAND ONE HUNDRED DOLLARS NONETHELESS THE CENTURY ENDED UP WITH AVERAGE OCCUPANCY OF NINETY PERCENT FOR NINETEEN NINETY THREE SOME TRAVEL AGENTS FRET THAT HIGHER RATES COULD START TO DIVERT TOURISTS TO OTHER DESTINATIONS IN SEPTEMBER NINETEEN NINETY THREE ACCORDING TO TRAVEL BUSINESS ANALYST AN INDUSTRY NEWSLETTER AN INTERNATIONAL STANDARD ROOM AVERAGED ONE HUNDRED TWO U. S. DOLLARS AND FOURTEEN CENTS IN SINGAPORE EIGHTY U. S. DOLLARS AND TWENTY THREE CENTS IN BANGKOK AND A HIGHER ONE HUNDRED SIXTEEN U. S. DOLLARS AND THREE CENTS IN HONG KONG TOUR OPERATORS COMPLAINING THAT PRICE INCREASES PUT HONG KONG AT A DISADVANTAGE TO SINGAPORE AND BANGKOK SAY THEY'VE RECENTLY FACED RATE INCREASES UP TO SEVENTY PERCENT WHEN RENEGOTIATING GROUP CONTRACTS WITH LOCAL HOTELS HONG KONG HOTELIERS COUNTER THAT UPSCALE ACCOMMODATIONS HERE ARE STILL CHEAPER THAN IN OTHER CITIES WITH HIGH CONCENTRATIONS OF FOUR AND FIVE STAR HOTELS THERE ARE FIVE GREAT CITIES IN THE WORLD NEW YORK PARIS LONDON TOKYO AND HONG KONG SAYS MR. REGAZZONI OF THE CONRAD QUOTE IF YOU COMPARE US TO THE OTHER FOUR CITIES WE'RE STILL RELATIVELY CHEAP QUOTE INDEED ACCORDING TO INTERNATIONAL HOTEL CONSULTANCY PKF CONSULTING ROOM RATES IN NINETEEN NINETY TWO THE MOST RECENT YEAR FOR WHICH FIGURES ARE AVAILABLE AVERAGED TWO HUNDRED TWENTY U. S. DOLLARS IN PARIS ONE HUNDRED SIXTY TWO U. S. DOLLARS IN LONDON ONE HUNDRED THIRTY FOUR U. S. DOLLARS IN NEW YORK AND ONE HUNDRED EIGHTY SEVEN U. S. DOLLARS IN TOKYO BUT JUST NINETY SEVEN U. S. DOLLARS AND EIGHTY SIX CENTS IN HONG KONG PEOPLE ARE SPOILED SAYS MR. TADROS OF REGAL THEY'RE GETTING A VERY GOOD BUY IN HONG KONG IN THE MIDRANGE MARKET MEANWHILE SOARING LAND AND LABOR COSTS PROMPT MANY DEVELOPERS TO PURSUE HIGH YIELD LOWER MAINTENANCE OFFICE AND COMMERCIAL PROJECTS AT THE EXPENSE OF LABOR AND MANAGEMENT INTENSIVE HOTELS AMONG THE HOTELS THAT HAVE CLOSED OR WILL SOON DO SO TO MAKE WAY FOR OTHER DEVELOPMENTS ARE THE SIX HUNDRED SIXTY ROOM LEE GARDENS HOTEL THE THREE HUNDRED SIXTEEN ROOM CHINA HARBOUR VIEW THE ONE HUNDRED SEVENTY EIGHT ROOM CHINA MERCHANTS HOTEL THE THREE HUNDRED THIRTEEN ROOM AMBASSADOR HOTEL AND THE ONE HUNDRED EIGHTY SEVEN ROOM HOTEL FORTUNA VIRTUALLY EVERY ROOM IN THE FORTUNA A THIRTY YEAR OLD THREE STAR HOTEL THAT CATERS MAINLY TO TAIWANESE AND SOUTHEAST ASIANS HAS BEEN TAKEN IN THE LAST THREE MONTHS BUT AFTER VERY DETAILED CALCULATIONS THE MANAGEMENT STILL DECIDED TO REDEVELOP THE SITE INTO A COMMERCIAL COMPLEX SAYS A FORTUNA EXECUTIVE WHO ASKED NOT TO BE IDENTIFIED THERE'S DEFINITELY GOING TO BE A SHORTAGE OF MIDRANGE HOTELS IF THE TREND CONTINUES THE FORTUNA IS OWNED BY WING ON INTERNATIONAL HOLDINGS LIMITED OF HONG KONG IN FACT THE STOCK OF MIDRANGE HOTELS IN HONG KONG IS SHRINKING AT A TIME WHEN ARRIVALS FROM CHINA TAIWAN AND SOUTHEAST ASIA THE MAIN USERS OF SUCH HOTELS ARE SURGING IN NINETEEN NINETY THREE ONE POINT SEVEN MILLION MAINLAND CHINESE UP FROM ONE POINT ONE MILLION IN NINETEEN NINETY TWO VISITED HONG KONG ACCOUNTING FOR ABOUT TWENTY PERCENT OF TOTAL ARRIVALS ACCORDING TO THE HKTA THEIR SHARE WAS EXCEEDED ONLY BY THE TAIWANESE WITH TWENTY ONE PERCENT THE PENINSULA'S MR. BIEGER WHO IS ALSO CHAIRMAN OF THE HONG KONG HOTELS ASSOCIATION SAYS THAT FOR THE FIRST TIME IN HIS FORTY YEARS HERE THE COLONY IS LOSING HOTEL ROOMS TO OFFICES THE HOTEL ASSOCIATION AND THE HKTA ARE URGING THE GOVERNMENT TO ALLOCATE LAND TO HOTEL DEVELOPERS AT PREFERENTIAL PRICES AND TO GRANT THEM TAX HOLIDAYS TO SPUR CONSTRUCTION IN NINETEEN NINETY TWO TOURISM BROUGHT IN H. K. FORTY EIGHT BILLION DOLLARS SECOND ONLY TO EXPORTS OF TEXTILES AND GARMENTS EVEN SO SAYS PENNY BYRNE ASSISTANT MANAGER OF PUBLIC RELATIONS AT THE HKTA IF IT'S CHEAPER TO KNOCK DOWN A HOTEL AND BUILD AN OFFICE BUILDING THE GOVERNMENT IS SAYING IT CAN DO WITHOUT TOURIST REVENUE 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 FIFTEEN SIXTEENTHS PERCENT LOW THREE 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 ONE TWO 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 TWO PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT TWO FOUR PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT THREE TWO PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED THIRTY NINE DAYS THREE POINT FOUR 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 NINE PERCENT THIRTY DAYS THREE POINT TWO TWO PERCENT SIXTY DAYS THREE POINT TWO SIX PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE SIX PERCENT ONE MONTH TWO POINT FIVE NINE PERCENT TWO MONTHS TWO POINT SIX FIVE PERCENT THREE MONTHS TWO POINT EIGHT TWO 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 ONE FIVE PERCENT ONE MONTH THREE POINT TWO FIVE PERCENT THREE MONTHS THREE POINT THREE EIGHT PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH SEVEN PERCENT THIRTY DAYS THREE POINT OH EIGHT PERCENT SIXTY DAYS THREE POINT ONE TWO PERCENT NINETY DAYS THREE POINT ONE SEVEN PERCENT ONE HUNDRED TWENTY DAYS THREE POINT TWO THREE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT TWO 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 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 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 THIRD 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 ONE OH PERCENT THIRTEEN WEEKS THREE POINT TWO NINE 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 FOUR 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 TWO PERCENT SIXTY DAYS SEVEN POINT ONE TWO 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 FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS THIS IS A TALE OF TWO COMPANIES BOTH FAMOUS BRAND NAMES IN THE WORLD WIDE COMPUTER INDUSTRY AND BOTH INFAMOUS FLOPS AT ONE OF ITS HOTTEST SPECIALTIES PERSONAL COMPUTERS UNTIL LATELY THAT IS AGAINST ALL THE ODDS HEWLETT PACKARD COMPANY AND DIGITAL EQUIPMENT CORPORATION HAVE MANAGED IN THE PAST TWO YEARS TO TRANSFORM THEIR ONCE PIDDLING P. C. BUSINESSES INTO WHAT INDUSTRY ANALYSTS NOW CALL CREDIBLE CONTENDERS ESPECIALLY HEWLETT PACKARD IN THE EUROPEAN MARKET THEY MAY STILL STUMBLE IN THE MONTHS AHEAD BUT THE TALE OF HOW THEY GOT EVEN THIS FAR IN EUROPE ILLUSTRATES THE SELLING POWER OF BIG BRAND NAMES IN TODAY'S CUTTHROAT P. C. MARKET PLUS THE IMPORTANCE OF A FEW LUCKY BREAKS QUOTE THERE'S A BIT OF LUCK QUOTE IN HEWLETT PACKARD'S P. C. PROGRESS ACKNOWLEDGES ALEXIS SOZONOFF GENERAL MANAGER OF H. P'S COMPUTER PRODUCTS DIVISION IN EUROPE THE MIDDLE EAST AND AFRICA IT BEGAN ITS WORLD WIDE SALES PUSH JUST AS AN INDUSTRY PRICE WAR BEGAN MAKING BIG BRAND P. C.S AFFORDABLE TO MORE CONSUMERS PROMPTING A MASS EXODUS FROM NO NAME CLONES TO HOUSEHOLD NAMES LIKE H. P. IT ALSO DIDN'T HURT THAT THE MARKET LEADERS INTERNATIONAL BUSINESS MACHINES CORPORATION AND COMPAQ COMPUTER CORPORATION HAD LONG BACKLOGS OF UNFILLED ORDERS THAT AT ONE POINT LAST YEAR WERE DELAYING DELIVERIES OF SOME MODELS BY SEVERAL WEEKS RATHER THAN WAIT MANY SHOPPERS DECIDED TO CHECK OUT H. P. BUT GOOD MANAGEMENT ALSO HELPED ANALYSTS SAY AT HEWLETT PACKARD THEY'RE MAKING ALL THE RIGHT MOVES SAYS CHRISTOPHER FELL HEAD EUROPEAN P. C. INDUSTRY ANALYST FOR DATAQUEST INCORPORATED A SAN JOSE CALIFORNIA MARKET RESEARCH FIRM HE ESTIMATES THAT HEWLETT PACKARD DOUBLED ITS SHARE OF EUROPEAN P. C. REVENUES TO FOUR POINT FOUR PERCENT IN LAST YEAR'S THIRD QUARTER THE MOST RECENT PERIOD FOR WHICH IT HAS COMPILED SUCH DATA THAT PUSHED IT TO FOURTH PLACE IN THE EUROPEAN MARKET LIKEWISE DIGITAL RAISED ITS SHARE OF EUROPEAN INDUSTRY REVENUES TO TWO POINT FOUR PERCENT FROM ONE POINT FOUR PERCENT A YEAR EARLIER THOUGH IT STILL ISN'T IN THE TOP TEN DATAQUEST SAYS IN THE U. S. DIGITAL'S P. C. DRIVE HAS ALSO FARED WELL BUT HEWLETT PACKARD'S U. S. MARKET SHARE STILL LAGS BEHIND ITS SHARE IN EUROPE AS THE COMPANY HAS YET TO SHED FULLY ITS REPUTATION AS AN ALSO RAN DATAQUEST'S MR. FELL WARNS OF PITFALLS AHEAD FOR BOTH COMPANIES MOST OF DIGITAL'S P. C. SALES IN EUROPE HAVE BEEN TO CLIENTS THAT ALREADY OWN OTHER DIGITAL PRODUCTS A RELATIVELY EASY SELL WHAT THEY'VE GOT TO DO NOW IS BREAK OUT OF THAT BUSINESS MODEL AND ATTRACT BRAND NEW CUSTOMERS HE SAYS AND H. P. THOUGH BIGGER THAN DIGITAL TODAY IN EUROPE IS STILL A LONG WAY FROM CHALLENGING I. B. M. COMPAQ AND APPLE COMPUTER INCORPORATED WHICH TOGETHER COMMANDED THIRTY EIGHT POINT FIVE PERCENT OF EUROPEAN P. C. MARKET REVENUES IN LAST YEAR'S THIRD QUARTER THERE'S A GREAT LEAP THAT NEEDS TO BE MADE TO START CATCHING UP HE SAYS CERTAINLY A FEW YEARS AGO MANY ANALYSTS SCOFFED AT EITHER COMPANY'S CHANCES OF GETTING ANYWHERE IN THE P. C. BUSINESS DIGITAL'S MOST FAMOUS FLOP WAS IN NINETEEN EIGHTY THREE WITH ITS RAINBOW P. C. MODEL WHICH COULDN'T USE INDUSTRY STANDARD SOFTWARE AND HEWLETT PACKARD HAD TRIED AND FAILED REPEATEDLY TO MAKE A MARK IN P. C.S PARTLY BECAUSE IT KEPT OVER CHARGING FOR THEM ANALYSTS SAY WHEN THE COMPANY BEGAN PLANNING YET ANOTHER ATTEMPT IN MAY NINETEEN NINETY TWO EVEN SOME OF ITS OWN EMPLOYEES WERE SKEPTICAL SAYS MR. SOZONOFF QUOTE PEOPLE SAID IT WAS ALMOST LIKE A JOKE QUOTE HE RECALLS BUT OPERATION HURRICANE AS H. P'S EUROPEAN MANAGERS CODE NAMED THEIR NEW P. C. CAMPAIGN WAS BETTER PLANNED THAN PAST EFFORTS WORLD WIDE THE COMPANY BEGAN OFFERING A RANGE OF NEW P. C. MODELS AND SET ITS PRICES TO BE WITHIN A FEW PERCENTAGE POINTS OF COMPAQ'S MODELS THE INDUSTRY'S MOST COMMON BENCHMARKS FOR P. C. PRICES TO PERMIT SUCH PRICES IT CUT ITS COSTS BY REORGANIZING ITS P. C. OPERATIONS IN EUROPE IT TOLD ITS ONE HUNDRED COMPUTER PRODUCTS SALESPEOPLE THAT THOU SHALT NOT LOSE AN ORDER TO COMPETITORS MR. SOZONOFF SAYS AND REQUIRED INTERNAL REVIEWS OF ANY BIG LOSSES MOST IMPORTANT ANALYSTS SAY IT SUCCEEDED IN GETTING MANY OF ITS COMPUTER PRINTER DEALERS IN EUROPE TO START STOCKING ITS P. C.S AS WELL BY NO MEANS AN EASY FEAT MANY ALREADY STOCKED I. B. M. COMPAQ AND OTHER P. C. MODELS AND WOULDN'T NORMALLY WANT THE EXTRA COSTS OF YET ANOTHER BRAND THAT'S WHERE H. P'S LUCK CAME IN HANDY AS THE BOOM IN BRAND NAME COMPUTERS BEGAN AND SOME I. B. M. AND COMPAQ MODELS WERE IN SHORT SUPPLY MANY DEALERS BEGAN OFFERING THEIR CUSTOMERS IMMEDIATE DELIVERIES OF H. P. P. C.S INSTEAD DIGITAL BY CONTRAST WAS STARTING FROM EVEN FURTHER BEHIND THAN HEWLETT PACKARD UNTIL A FEW YEARS AGO IT DIDN'T EVEN HAVE MANY P. C. MODELS OF ITS OWN DESIGN PREFERRING TO RESELL OTHER BRANDS UNDER ITS OWN NAME GRADUALLY IT CORRECTED THAT MANUFACTURING NEW MODELS OF ITS OWN AND CUTTING OUTSIDE PURCHASES THAT REDUCED DIGITAL'S COSTS AND LET IT SET PRICES AT ABOUT INDUSTRY AVERAGES IT MADE ITS WORLD WIDE P. C. BUSINESS A SEPARATE UNIT TO CUT BUREAUCRACY AND COSTS IT ALSO ASSEMBLED A NEW TEAM OF EXPERIENCED P. C. MANAGERS LED IN EUROPE BY BERNARD AUER A DEFECTOR FROM COMPAQ AND APPLYING THE SAME BASIC MARKETING FORMULAS IN EUROPE AS IN THE U. S. IT SENT PRODUCT CATALOGS AND SALESPEOPLE TO MANY EXISTING DIGITAL CUSTOMERS TO GET DIGITAL'S P. C.S ON THEIR CORPORATE PROCUREMENT LISTS IN EUROPE TODAY MR. AUER SAYS ABOUT EIGHTY PERCENT OF DIGITAL'S P. C. SALES ARE TO OWNERS OF OTHER DIGITAL PRODUCTS TO BROADEN THE CLIENTELE MR. AUER SAYS HE AIMS TO ENLIST MORE INDEPENDENT P. C. DISTRIBUTORS AND DEALERS RATHER THAN CONTINUE RELYING ON DIGITAL'S OWN SALES FORCE PROVIDED INTERNAL OBSTACLES ALLOW IT FOR INSTANCE HE SAYS HE WANTS TO AWARD BONUSES TO DIGITAL SALESPEOPLE WHO PASS ON GOOD SALES LEADS TO INDEPENDENT DIGITAL DEALERS A COMMON PRACTICE IN THE P. C. INDUSTRY THAT KEEPS DEALERS HAPPY AND SALES COSTS LOW BUT THAT'S A BREAK FROM DIGITAL TRADITION HE SAYS THAT WHILE DIGITAL'S NORDIC COUNTRY MANAGERS PLAN TO START THE BONUSES ITS BRITISH MANAGERS THINK THEY'RE ALREADY DOING WELL ENOUGH WITHOUT SUCH INCENTIVES NATURALLY BOTH COMPANIES HAVE BIG PLANS FOR THE FUTURE DIGITAL'S MR. AUER AIMS TO DOUBLE EUROPEAN P. C. SALES IN THE CURRENT FISCAL YEAR THAT BEGAN LAST JULY FOURTH TO MORE THAN THREE HUNDRED THOUSAND MACHINES WORTH MORE THAN FIVE HUNDRED MILLION DOLLARS HEWLETT PACKARD'S MR. SOZONOFF SAYS HE AIMS THIS YEAR TO REPEAT LAST YEAR'S PERFORMANCE OF INCREASING EUROPEAN P. C. REVENUES BY ABOUT SIXTY PERCENT THOUGH HE DECLINES TO PROVIDE REVENUE FIGURES HE INDICATES H. P. LAST YEAR SOLD MORE THAN THREE HUNDRED FIFTY THOUSAND P. C.S IN EUROPE AT AVERAGE WHOLESALE PRICES OF ONE THOUSAND EIGHT HUNDRED DOLLARS APIECE THAT'S WORTH AT LEAST SIX HUNDRED THIRTY MILLION DOLLARS HIS ULTIMATE GOAL HE SAYS IS SEVEN PERCENT TO TEN PERCENT OF THE EUROPEAN P. C. MARKET TO GET THERE MR. SOZONOFF ISN'T PLANNING ANY SPECIAL NEW TRICKS THERE REALLY IS NO MAGIC TO EXPANDING A P. C. BUSINESS HE SAYS THE KEY THING IS TO KEEP THE WHEELS CHURNING BRAZIL'S AUTO INDUSTRY SAID IT SET A PRODUCTION RECORD IN NINETEEN NINETY THREE WITH ONE POINT FOUR MILLION VEHICLES THE INDUSTRY SAID QUOTE WHEN YOU SET A GOAL OF ONE POINT TWO MILLION VEHICLES AND YOU SEE THESE FIGURES YOU CAN ONLY BE HAPPY QUOTE SAID LUIZ ADELAR SCHEUER PRESIDENT OF THE NATIONAL ASSOCIATION OF AUTOMOTIVE MANUFACTURERS IN DECEMBER PRODUCTION WAS UP FORTY FIVE PERCENT FROM A YEAR EARLIER BUT WAS DOWN SEVENTEEN PERCENT FROM NOVEMBER THE INDUSTRY PRODUCED ONE HUNDRED ELEVEN THOUSAND VEHICLES IN DECEMBER COMPARED WITH SEVENTY SIX THOUSAND A YEAR EARLIER AND ONE HUNDRED THIRTY THREE THOUSAND IN NOVEMBER THE INDUSTRY EXPORTED THREE HUNDRED THIRTY ONE THOUSAND VEHICLES IN NINETEEN NINETY THREE DOWN THREE POINT THREE PERCENT FROM THREE HUNDRED FORTY TWO THOUSAND IN NINETEEN NINETY TWO EXPORTS IN DECEMBER TOTALED TWENTY SEVEN THOUSAND TWO HUNDRED VEHICLES UP FIVE POINT THREE PERCENT FROM A YEAR EARLIER BUT DOWN TWENTY THREE PERCENT FROM NOVEMBER BRAZIL EXPORTS AUTOS PRIMARILY TO ARGENTINA AND OTHER LATIN AMERICAN COUNTRIES THE FIGURES INCLUDE PASSENGER CARS TRUCKS AND BUSES BUNDESBANK PRESIDENT HANS TIETMEYER SAID THE GERMAN CENTRAL BANK WOULD KEEP INTEREST RATE POLICY UNCHANGED FOR THE TIME BEING BUT HE WOULDN'T RULE OUT FURTHER REDUCTIONS IF CONDITIONS WERE RIGHT THE BUNDESBANK'S POLICY SETTING CENTRAL BANK COUNCIL DECIDED YESTERDAY IN ITS FIRST MEETING OF THE YEAR TO KEEP ITS DISCOUNT AND LOMBARD RATES AT CURRENT LEVELS IT ALSO KEPT THE INTEREST RATE ON ITS OPEN MARKET SECURITIES REPURCHASE AGREEMENTS FIXED AT SIX PERCENT FOR TWO WEEKS QUOTE WE WANTED TO SHOW THAT WE DON'T PLAN ANY CHANGES IN OUR POLICY NOW AND IN THE FORESEEABLE FUTURE QUOTE MR. TIETMEYER TOLD A GROUP OF FOREIGN JOURNALISTS LAST NIGHT AFTER THE COUNCIL'S DECISION WE WILL WAIT AND SEE HOW THINGS DEVELOP THE BUNDESBANK LAST REDUCED ITS OFFICIAL INTEREST RATES OCTOBER TWENTY SECOND WHEN IT BROUGHT ITS DISCOUNT RATE THE RATE CHARGED FOR OVERNIGHT LOANS TO BANKS DOWN TO FIVE POINT SEVEN FIVE PERCENT AND LOWERED ITS LOMBARD RATE WHICH THE BANK CHARGES ON BORROWINGS THAT USE SECURITIES AS COLLATERAL TO SIX POINT SEVEN FIVE PERCENT SINCE THEN THE CENTRAL BANK HAS BEEN SEEN INTERRUPTING ITS GRADUAL EASING PROCESS AS GROWTH IN ITS M. THREE BROADLY DEFINED MONEY SUPPLY CONTINUED TO OVERSHOOT GROWTH TARGETS IN LATE NINETEEN NINETY THREE MR. TIETMEYER SAID THAT POLICY COULD CHANGE IF INFLATION INDICATORS TURN MORE FAVORABLE EARLIER IN THE WEEK BUNDESBANK COUNCIL MEMBER HANS JUERGEN KOEBNICK SAID CENTRAL BANK POLICY MAKERS WERE PLANNING TO BRING SHORT TERM INTEREST RATES DOWN FURTHER OVER THE COURSE OF THE YEAR CLAIMING THEY WERE TOO HIGH FOR A COUNTRY STILL IN RECESSION MR. TIETMEYER SAID HE DIDN'T DISAGREE WITH MR. KOEBNICK BUT ADDED THAT HE MIGHT HAVE PUT IT A LITTLE DIFFERENTLY I HAVE ALWAYS SAID THAT OUR M. THREE TARGET DOESN'T RULE OUT FURTHER INTEREST RATE REDUCTIONS IF THE OTHER PREREQUISITES ARE IN PLACE MR. TIETMEYER SAID AMONG THEM ARE INFLATION AND SUCH FACTORS AS THE EXCHANGE RATE FOR THE MARK WHICH MR. TIETMEYER SAID THE BUNDESBANK CONTINUES TO MONITOR CLOSELY MR. TIETMEYER ALSO SAID HE DIDN'T EXPECT A BROAD BASED RECOVERY IN THE WESTERN GERMAN ECONOMY THIS YEAR HE SAID THAT ONLY EXPORTS CAN PULL THE ECONOMY OUT OF ITS MALAISE ASSERTING THAT THE GERMAN ECONOMY HAS NEVER RECOVERED FROM PAST SLUMPS ON ITS DOMESTIC ECONOMY ALONE BUNDESBANK OFFICIALS FEAR THAT MOVING SHORT TERM RATES DOWN TOO QUICKLY COULD REKINDLE INFLATION PRESSURES AND UNDERMINE THE CONFIDENCE OF FINANCIAL MARKETS IN THE MARK THIS COULD SLOW THE INFLOW OF CAPITAL GERMAN NEEDS TO FINANCE PUBLIC SECTOR AND CURRENT ACCOUNT DEFICITS CAPITAL SHORTAGES COMBINED WITH NEW INFLATION CONCERNS COULD FORCE LONG TERM INTEREST RATES BACK UP FROM NEAR HISTORIC LOWS OF FIVE POINT FOUR FOUR PERCENT CURRENTLY THE BUNDESBANK ASSERTS THAT LONG TERM RATES ARE THE DECISIVE RATES FOR INVESTMENT DECISIONS BY GERMAN INDUSTRY BUT THE BUNDESBANK'S GO SLOW POLICY HAS BEEN CRITICIZED FOR PROLONGING GERMANY'S ECONOMIC SLUMP THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED DOUBLING THE NUMBER OF CHEMICALS WHOSE RELEASE INTO WATER OR AIR MUST BE REPORTED TO THE AGENCY BY MANUFACTURERS IN A RULE ISSUED UNDER THE NINETEEN EIGHTY SIX EMERGENCY PLANNING AND COMMUNITY RIGHT TO KNOW ACT THE E. P. A. PROPOSED ADDING THREE HUNDRED THIRTEEN CHEMICALS TO THE LIST OF THREE HUNDRED TWENTY CHEMICALS WHOSE EMISSIONS MANUFACTURERS ARE REQUIRED TO REPORT FOR THE E. P. A.'S ANNUAL TOXIC RELEASE INVENTORY THE INCREASED REPORTING REQUIREMENTS WOULD BE ESPECIALLY SIGNIFICANT FOR PESTICIDE MANUFACTURERS AND PROCESSORS WHO EMIT MORE THAN HALF THE CHEMICALS THAT THE E. P. A. PROPOSES TO ADD TO THE LIST UNDER THE PLAN THE PESTICIDE INDUSTRY WOULD HAVE TO MONITOR EMISSIONS OF ONE HUNDRED SEVENTY NEW CHEMICALS IN ADDITION TO THE TWENTY FOUR CHEMICALS THEY CURRENTLY MONITOR OTHER AFFECTED INDUSTRIES INCLUDE CHEMICAL MANUFACTURERS METAL FABRICATORS AND FOOD PROCESSORS THOMAS GILDING ENVIRONMENTAL AFFAIRS DIRECTOR FOR THE NATIONAL AGRICULTURAL CHEMICALS ASSOCIATION WHICH REPRESENTS THE PESTICIDE INDUSTRY SAID HIS GROUP WOULD SUPPORT THE NEW REQUIREMENT IF THE CRITERIA FOR INCLUDING THE NEW CHEMICALS ARE QUOTE BASED ON RISK QUOTE BUT IF A CHEMICAL IS ON THERE BECAUSE IT HAPPENS TO BE CALLED A PESTICIDE THEN WE'LL HAVE AN ISSUE WITH THAT HE SAID SINCE NINETEEN EIGHTY NINE THE E. P. A. HAS USED THE TOXIC RELEASE INVENTORY TO ALERT COMMUNITIES TO POTENTIALLY HARMFUL EMISSIONS OF CHEMICALS BY FACTORIES THE DATA HAVE BEEN A SIGNIFICANT PROD TO INDUSTRY TO REDUCE EMISSIONS SERVING AS AN EYE OPENER TO LOTS OF C. E. O.S WHO ARE EMBARRASSED BY THE PUBLICITY THE FINDINGS RECEIVE ACCORDING TO E. P. A. ADMINISTRATOR CAROL BROWNER THE E. P. A. ALSO USES THE DATA IN ITS OWN ENFORCEMENT ACTIONS IN ADDITION TO PROPOSING YESTERDAY'S RULE THE AGENCY PLANS TO PROPOSE A REGULATION EXPANDING THE NUMBER OF INDUSTRIAL SECTORS THAT MUST REPORT TO THE TOXIC RELEASE INVENTORY CURRENTLY ONLY MANUFACTURERS ARE COVERED THE AGENCY IS CONSIDERING ADDING UTILITIES WHOLESALE DISTRIBUTORS AND MINING CONCERNS AMONG OTHERS THE DOLLAR ROSE AGAINST EUROPEAN CURRENCIES UNDETERRED BY BEARISH U. S. JOBLESS DATA AND A DECISION BY THE BUNDESBANK TO LEAVE GERMAN INTEREST RATES UNCHANGED BUT THE U. S. CURRENCY FELL SLIGHTLY AGAINST THE YEN DAMPED BY REPORTS DURING ASIAN TRADING THAT U. S. ECONOMIST C. FRED BERGSTEN HAD URGED THE FEDERAL RESERVE TO PROP UP THE JAPANESE CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FOUR FOUR FIVE MARKS UP FROM ONE POINT SEVEN THREE NINE FIVE MARKS LATE WEDNESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED TWELVE POINT SIX FIVE YEN DOWN FROM ONE HUNDRED TWELVE POINT NINE OH YEN STERLING WAS TRADING AT ONE POINT FOUR EIGHT ONE FIVE DOLLARS DOWN FROM ONE POINT FOUR EIGHT SEVEN TWO DOLLARS ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED TWELVE POINT FIVE FIVE YEN AND AT ONE POINT SEVEN FOUR THREE FIVE MARKS THE DOLLAR BEGAN THE DAY TESTING THE DOWNSIDE WITH MR. BERGSTEN'S REMARKS PROVIDING AN EARLY EXCUSE TO SELL THE U. S. CURRENCY AGAINST THE YEN THE DOLLAR REMAINED MOSTLY STAGNANT UNTIL IT WENT INTO A SKID AFTER THE BUNDESBANK ANNOUNCED ITS INTENTION TO LEAVE ITS KEY LOMBARD AND DISCOUNT RATES UNDISTURBED AN HOUR LATER DATA WERE RELEASED SHOWING U. S. JOBLESS CLAIMS UP SEVENTY THOUSAND IN THE WEEK ENDED JANUARY FIRST THAT WAS ALMOST THREE TIMES THE EXPECTED RATE OF INCREASE AND IT APPEARED TO UNDERMINE WIDESPREAD HOPES THAT TODAY'S NONFARM PAYROLL DATA FOR DECEMBER WOULD PROVE BULLISH FOR THE U. S. ECONOMY THE DOUBLE BLOW PUSHED THE DOLLAR TO A DAY'S LOW OF ONE POINT SEVEN THREE FIVE OH MARKS BUT IT HELD FAST AT THAT LEVEL BOOSTING TRADERS' OPTIMISM ABOUT THE U. S. CURRENCY'S INNATE STRENGTH QUOTE WE HAD LOUSY JOBLESS NUMBERS YET FAILED TO BREAK BELOW ONE POINT SEVEN THREE FIVE OH MARKS QUOTE SAID DAVID WALKER SENIOR MANAGER OF TORONTO DOMINION SECURITIES INCORPORATED THAT CAUSED PEOPLE TO TEST THE OTHER END OF THE RANGE HE ADDED AND TARGET LAST YEAR'S HIGH OF ONE POINT SEVEN FOUR SEVEN THREE MARKS TRADERS SAID TODAY'S U. S. MONTHLY NONFARM PAYROLL NUMBERS WOULD BE A CRITICAL TEST OF DOLLAR MOVEMENTS THE NUMBERS ARE OFTEN SEEN AS AN IMPORTANT MEASURE OF THE NATION'S ECONOMIC HEALTH AND BULLISH EXPECTATIONS ABOUT THOSE NUMBERS WERE CREDITED FOR SOME OF THE DOLLAR'S RISE LATE YESTERDAY ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT PREDICTED NONFARM PAYROLLS ROSE TWO HUNDRED THIRTY NINE THOUSAND FOR DECEMBER SOME TRADERS HOWEVER SAY THE MARKET MAY BE TOO OPTIMISTIC AND THAT COULD PUT THE DOLLAR AT RISK TODAY IF THE PAYROLL NUMBER IS ANYTHING SHORT OF SPECTACULAR AS IF TO SUPPORT THAT CAUTION U. S. LABOR SECRETARY ROBERT REICH SAID EARLY YESTERDAY THAT THE MONTHLY DATA WOULD SHOW A RISE OF ONE HUNDRED SIXTY THOUSAND TO TWO HUNDRED THOUSAND THE BUREAU OF LABOR STATISTICS LATER EMPHASIZED THAT MR. REICH HADN'T SEEN THE ACTUAL DECEMBER FIGURES AND WAS MAKING ONLY AN ESTIMATE IF TODAY'S EMPLOYMENT NUMBERS ARE SOFT WE MAY WELL SEE THE DOLLAR DROP TO ONE POINT SIX NINE OH OH MARKS AGAIN SAID CARL AMENDOLA VICE PRESIDENT OF BAYERISCHE HYPOTHEKENUND WECHSEL BANK A. G. YET THE DOLLAR HELD FIRM YESTERDAY AGAINST THE MARK DESPITE AN ANNOUNCEMENT THAT THE BUNDESBANK WOULD LEAVE ITS MAIN INTEREST RATES UNCHANGED THE GERMAN CENTRAL BANK'S DECISION CAME AGAINST A BACKDROP OF A CURRENCY THAT HAD BEEN WEAKENING STEADILY SINCE THE CHRISTMAS HOLIDAYS MR. AMENDOLA ARGUED THAT TRADERS WERE WELL PREPARED FOR THE BUNDESBANK'S NEWS THE MARKET WAS SEVENTY FIVE PERCENT SURE NOTHING WOULD HAPPEN AT THE ONE POINT SEVEN FOUR OH OH LEVEL HE SAID NOTING THAT THE BUNDESBANK'S DIRECTORS FEARED THAT A RATE CUT WOULD FURTHER WEAKEN THE MARK AND POSSIBLY FUEL DOMESTIC INFLATION BY RAISING IMPORT PRICES DEPARTMENT STORES AREN'T THE ONLY PLACE FOR AFTER CHRISTMAS SALES BARGAINS ALSO BECKON IN PUBLICLY TRADED BOND FUNDS QUOTE THERE ARE LOTS OF BARGAINS AROUND IN SUCH FUNDS QUOTE SAYS THOMAS HERZFELD PRESIDENT OF THOMAS HERZFELD ADVISORS A MIAMI FIRM SPECIALIZING IN PUBLICLY TRADED MUTUAL FUNDS THIS IS HUNTING SEASON FOR CLOSED END BOND FUNDS AMONG MR. HERZFELD'S FAVORITES ARE NUVEEN INSURED PREMIUM INCOME MUNICIPAL TWO AND NUVEEN PREMIUM INCOME MUNICIPAL FOUR CURRENTLY AT DISCOUNTS OF SEVEN POINT SIX PERCENT AND NINE POINT SEVEN PERCENT RESPECTIVELY THESE TAX EXEMPT BOND FUNDS CAME TO MARKET LAST YEAR AT FIFTEEN DOLLARS A SHARE A SIX POINT EIGHT PERCENT PREMIUM AND NOW TRADE AT ABOUT THIRTEEN DOLLARS A SHARE THEIR ASSETS MEANWHILE HAVE EDGED UP IN VALUE AND SHOULD CONTINUE TO GAIN ON RISING INVESTOR DEMAND AS THE TAX SEASON APPROACHES HE SAYS OF COURSE THE OUTLOOK FOR INTEREST RATES MAY JUSTIFY BOND FUNDS' DISCOUNTS AND THERE'S NO GUARANTEE THEIR CHEAP PRICES WON'T GET EVEN CHEAPER IN THE FUTURE THE APPARENT BARGAINS MAY ACCURATELY REFLECT REAL RISKS LURKING IN THESE FUNDS SOME ANALYSTS SAY IN PARTICULAR THE ANALYSTS POINT TO RIGHTS OFFERINGS NOW BEING PROMOTED BY CHICAGO BASED JOHN NUVEEN AND COMPANY ONE OF THE U. S.'S BIGGEST SPONSORS OF CLOSED END BOND FUNDS TWO OF NUVEEN'S BIGGEST OLDEST FUNDS NUVEEN MUNICIPAL VALUE FUND AND NUVEEN PREMIUM INCOME MUNICIPAL FUND A PREDECESSOR TO MR. HERZFELD'S PICKS ARE TARGETS OF SUCH OFFERINGS WHICH GIVE CURRENT SHAREHOLDERS THE RIGHT TO BUY NEW SHARES BEING ISSUED BY A FUND RIGHTS OFFERINGS ARE CONSIDERED TO BE BAD FOR FUND SHAREHOLDERS BECAUSE THEY DILUTE THEIR HOLDINGS AND OFTEN LEAD THEM TO BUY MORE SHARES WHEN PRICES ARE PEAKING THE MARKET IS SPOOKED THAT MORE SUCH DILUTING RIGHTS ISSUES WILL FOLLOW BUT FANS OF CLOSED END FUNDS SAY THE POTENTIAL HAZARDS ALREADY HAVE BEEN DISCOUNTED IN TODAY'S LOW PRICES AT LEAST TWO DOZEN OF PUBLICLY TRADED BOND FUNDS NOW ALLOW INVESTORS TO BUY A DOLLAR'S WORTH OF DIVERSIFIED BOND HOLDINGS FOR AS LITTLE AS NINETY CENTS THEY SAY THAT'S A SWITCH FROM JUST A FEW MONTHS AGO WHEN THE SAME FUNDS SOLD FOR PRICES THAT WERE HIGHER THAN THE VALUE OF THE UNDERLYING BONDS PUBLICLY TRADED FUNDS OR CLOSED END FUNDS RESEMBLE NORMAL OPEN END MUTUAL FUNDS BUT WITH A FEW KEY DIFFERENCES UNLIKE OPEN END FUNDS WHICH CONSTANTLY ADJUST THE NUMBER OF SHARES OUTSTANDING IN LINE WITH INVESTOR DEMAND CLOSED END FUNDS ISSUE A FIXED NUMBER OF SHARES WHEN INDIVIDUALS PURCHASE OR CASH IN ON CLOSED END FUNDS THEY'RE AT THE MERCY OF WHAT OTHER INVESTORS THINK THOSE SHARES ARE WORTH AS A RESULT PRICES OF CLOSED END FUNDS UNLIKE THOSE OF OPEN END FUNDS DON'T NECESSARILY MATCH THEIR NET ASSET VALUES OR THE PER SHARE VALUE OF THE ASSETS IN THE FUNDS' PORTFOLIOS DEPENDING ON PREVAILING MARKET VIEWS PRICES MAY RISE ABOVE THE FUNDS' NET ASSET VALUES OR AS IS TYPICAL NOW SINK BELOW THEM IDENTIFYING A CHEAP CLOSED END FUND IS EASY IT MERELY REQUIRES COMPARING THE FUND'S PUBLICLY TRADED SHARE PRICE WITH ITS NET ASSET VALUE PER SHARE FUNDS USUALLY CALCULATE THEIR PER SHARE NET ASSET VALUE AT LEAST ONCE A WEEK THE WALL STREET JOURNAL PUBLISHES THIS DATA ON MONDAYS ALONG WITH THE FUND'S SHARE PRICE AND THE SIZE OF THE DISCOUNT OR PREMIUM DISCOUNTS PREDOMINATE AMONG BOND FUNDS LATELY CLOSED END FUNDS SPECIALIZING IN TAX EXEMPT MUNICIPAL BONDS HAVE BEEN TRADING AT AN AVERAGE DISCOUNT OF FOUR POINT TWO PERCENT ACCORDING TO LIPPER ANALYTICAL SERVICES LAST SUMMER THESE SAME FUNDS TRADED AT AN AVERAGE PREMIUM OF ZERO POINT SEVEN PERCENT SIMILARLY CLOSED END FUNDS THAT INVEST IN TAXABLE BONDS HAVE BEEN SHOWING AN AVERAGE DISCOUNT OF ONE POINT FOUR PERCENT COMPARED WITH AN AVERAGE PREMIUM OF ZERO POINT SIX PERCENT AS RECENTLY AS SEPTEMBER THIRTIETH WHY THE TURNABOUT SUPPLY HAS DEMONSTRABLY EXCEEDED DEMAND SAYS RON OLIN OF DEEP DISCOUNT ADVISERS AN ASHEVILLE N. C. MONEY MANAGER SPECIALIZING IN CLOSED END FUNDS ON THE SUPPLY SIDE FUND SPONSORS FLOODED THE MARKET LAST YEAR WITH NEW FUND OFFERINGS DESIGNED TO PROFIT FROM THEN FALLING INTEREST RATES DEMAND MEANWHILE HAS FALLEN AFTER A REBOUND IN RATES IN THE AUTUMN DAMPED ENTHUSIASM FOR BONDS BETWEEN THOSE TWO FORCES DEMAND HAS BEEN SATED SAYS CATHERINE GILLIS EDITOR OF MORNINGSTAR CLOSED END FUNDS A CHICAGO NEWSLETTER MAKING MATTERS WORSE WERE NUVEEN'S SURPRISE ANNOUNCEMENTS OF RIGHTS OFFERINGS IN NOVEMBER TERMS OF THOSE TWO OFFERINGS ALLOW NUVEEN TO ADD AT MOST ONE NEW SHARE FOR EVERY THREE SHARES OUTSTANDING PRICES FOR THE OFFERINGS WILL BE SET AT THE LOWER OF THE FUNDS' NET ASSET VALUE ON JANUARY TWENTY FIRST OR NINETY FIVE PERCENT OF THE FUNDS' AVERAGE MARKET PRICE FOR THE WEEK ENDING JANUARY TWENTY FIRST FUND WATCHERS SAY NUVEEN'S OFFERINGS ARE EVEN WORSE FOR INVESTORS THAN THEY MAY APPEAR THAT'S BECAUSE BROKERAGE HOUSES AND INVESTMENT ADVISERS WILL SKIM AS MUCH AS THREE PERCENT OF THE PROCEEDS RAISED MR. OLIN CALLS THE FEES QUOTE TOTALLY UNNECESSARY AND COSTLY TO SHAREHOLDERS QUOTE NOTING THAT SOME QUOTE TOTALLY SUCCESSFUL QUOTE RIGHTS OFFERINGS FOR BOND FUNDS HAVEN'T CHARGED SUCH FEES NUVEEN VICE PRESIDENT JEFF KRATZ ARGUES THAT BROKERS AND OTHER ADVISERS SHOULD BE REWARDED FOR EXPLAINING THE COMPLEXITIES OF THE OFFERINGS TO FUNDHOLDERS FAR FROM HURTING INVESTORS HE CONTENDS THE OFFERINGS ALLOW THEM TO BOOST HOLDINGS AHEAD OF AN EXPECTED RALLY IN MUNICIPAL BONDS BUT MR. KRATZ ACKNOWLEDGES THAT NUVEEN HAS A FINANCIAL STAKE IN THE DEAL AFTER SWELLING THE FUNDS THE COMPANY WILL RAKE IN MORE ANNUAL MANAGEMENT FEES THE FACT THAT NUVEEN ISN'T RULING OUT MORE RIGHTS OFFERINGS HAS DEPRESSED PRICES OF MANY NUVEEN MUNICIPAL FUNDS AT TODAY'S PRICES MANY OF THOSE FUNDS ARE ATTRACTIVE ESPECIALLY BECAUSE MANY EXPERTS DO EXPECT MUNICIPALS TO DO WELL AS TAX DEADLINES APPROACH IN APRIL WHEN TAX BILLS ARE PAID THAT'S WHEN IT WILL HIT PEOPLE HOW MUCH THEY NEED TO SHELTER THEIR INCOME SAYS STUART GOLDBERG FORMER HEAD OF MUTUAL FUND RESEARCH AT MERRILL LYNCH AND COMPANY BESIDES THE TAX EXEMPT FUNDS SUGGESTED BY MR. HERZFELD MR. OLIN FAVORS OTHER HEAVILY DISCOUNTED NUVEEN MUNICIPAL FUNDS IN ITS NUMBERED PREMIUM SERIES BECAUSE THESE FUNDS ARE LESS THAN A YEAR OLD THEY'RE UNLIKELY CANDIDATES FOR RIGHTS OFFERINGS HE SAYS HE PREFERS FUNDS WITH DISCOUNTS OF ABOUT TEN PERCENT OR MORE AMONG TAXABLE BOND FUNDS MR. OLIN LIKES FORT DEARBORN INCOME SECURITIES FUND A CONSERVATIVELY RUN FUND THAT TRADES AT A FIVE POINT TWO PERCENT DISCOUNT THIS TOO IS AN UNLIKELY CANDIDATE FOR A RIGHTS OFFERING BECAUSE ITS SPONSOR JUST COMPLETED ONE DECEMBER TENTH FOR THE ADVENTUROUS MR. HERZFELD RECOMMENDS HYPERION NINETEEN NINETY NINE TERM TRUST A TAXABLE BOND FUND THAT DIPPED DISASTROUSLY INTO RISKY MORTGAGE BACKED SECURITIES A PENDING SHAREHOLDER LAWSUIT AGAINST THE FUND HAS HAMMERED ITS IMAGE AS WELL AS ITS SHARE PRICE MR. HERZFELD THINKS IT'S A BARGAIN AT TODAY'S SEVEN POINT SEVEN PERCENT DISCOUNT GIVEN THE FACT THAT THE LEGAL PROBLEMS MEAN THE FUND SHOULD ACT MORE CONSERVATIVELY FROM NOW ON A THREE HUNDRED SIXTY THOUSAND DOLLAR PIECE OF A PENTAGON SATELLITE WAS MISPLACED AND THEN BOUGHT FOR SEVENTY FIVE DOLLARS AT AN AUCTION BY AN AUTOMOBILE MECHANIC IN RURAL NORTH CAROLINA ROGER SPILLMAN WHO ALSO SELLS AUTO PARTS AND DELIVERS FUEL OIL IN COOLEEMEE N. C. SAID AIR FORCE INVESTIGATORS WEREN'T EVEN VERY POLITE IN RETRIEVING THE PART A SHOEBOX SIZED RADIO AMPLIFIER INTENDED FOR THE MILSTAR MILITARY COMMUNICATIONS SATELLITE QUOTE THEY WERE A LITTLE BIT HUFFY WHEN THEY TOOK IT QUOTE FROM THE HOUSE OF A HAM RADIO OPERATOR TO WHOM HE HAD LENT THE PART MR. SPILLMAN SAID IN AN INTERVIEW THE SAGA OF THE MISSING PART WAS REPORTED YESTERDAY IN THE WINSTON SALEM N. C. JOURNAL MR. SPILLMAN SAID HE HASN'T BEEN REIMBURSED YET BY THE AIR FORCE BUT ADDED THAT HIS LAWYER WAS TOLD BY AN AIR FORCE OFFICIAL THAT IF HE HAD ATTEMPTED TO USE THE DEVICE IN HIS OWN RADIOS IT WOULD HAVE KNOCKED OUT EVERY T. V. FOR TWO MILES IN EVERY DIRECTION THE AIR FORCE DIDN'T HAVE AN IMMEDIATE COMMENT BUT A SPOKESMAN FOR THE DEFENSE LOGISTICS AGENCY WHICH OPERATES WAREHOUSES FOR THE AIR FORCE SAID THAT THE PAPERWORK FOR THE AMPLIFIER APPARENTLY WAS LOST BY WATKINS MOTOR LINES INCORPORATED THE TRUCKING COMPANY THAT WAS SUPPOSED TO CONVEY THE PART FROM ITS MAKER RAYTHEON COMPANY TO MCCLELLAN AIR FORCE BASE IN SACRAMENTO CALIFORNIA WATKINS THEN APPARENTLY PUT THE PIECE IN A LOST FREIGHT COLLECTION WHICH IT EVENTUALLY TURNED OVER TO AN AUCTION HOUSE BILL PAUL A VICE PRESIDENT OF THE LAKELAND FLORIDA TRANSPORTATION CONCERN DECLINED TO COMMENT IT ISN'T CLEAR WHY IT TOOK SEVERAL MONTHS FOR THE AIR FORCE TO RECOGNIZE THAT THE EXPENSIVE PIECE OF EQUIPMENT HADN'T BEEN DELIVERED INDEED IT APPEARS THAT THE AIR FORCE DIDN'T DETECT THE MISPLACEMENT AND INSTEAD WAS INFORMED OF THE SITUATION BY RAYTHEON AFTER MR. SPILLMAN'S FRIEND REPEATEDLY CONTACTED THE COMPANY SEEKING INSTRUCTIONS ON HOW TO USE THE AMPLIFIER THE EMBARRASSING INCIDENT CAN ONLY ADD TO THE TROUBLES OF THE MULTIBILLION DOLLAR MILSTAR PROGRAM THE AIR FORCE RUNS THE PROGRAM BUT DOESN'T PARTICULARLY LIKE CARRYING ITS COSTS AND HAS TRIED TO TRIM THE PROGRAM IN THE PAST ONLY TO BE REBUFFED BY THE JOINT CHIEFS OF STAFF A RECENT RAND CORPORATION STUDY CRITICIZED THE PROGRAM WHICH IS BEING INVESTIGATED BY A CONGRESSIONAL COMMITTEE COPLEY PHARMACEUTICAL INCORPORATED'S NATIONWIDE RECALL OF ITS ASTHMA DRUG ALBUTEROL SENT A CHILL THROUGH THE MARKET YESTERDAY IN UNUSUALLY ACTIVE OVER THE COUNTER TRADING COPLEY SHARES WERE QUOTED AT TWENTY NINE DOLLARS AND FIFTY CENTS DOWN EIGHT DOLLARS A GERMAN COMPANY HOECHST CELANESE CORPORATION LAST YEAR ACQUIRED FIFTY ONE PERCENT OF THE GENERIC DRUG MANUFACTURER FOR FIVE HUNDRED FORTY SIX MILLION DOLLARS COPLEY SAID IT RECALLED ALBUTEROL SULFATE INHALATION SOLUTION ZERO POINT FIVE PERCENT BECAUSE A POTENTIALLY HARMFUL BACTERIA PSEUDOMONAS FLUORESCENS WAS FOUND IN SOME MANUFACTURING UNITS THE COMPANY'S MEDICAL DIRECTOR KENNETH ZACK SAID THAT THE RECALL IS PRECAUTIONARY AND THAT NO CONSUMERS ARE KNOWN TO HAVE BEEN AFFECTED QUOTE THIS IS NOT A SITUATION FOR PEOPLE TO PANIC QUOTE DOCTOR ZACK SAID NONETHELESS THE MARKET WAS JITTERY ALBUTEROL IS A SIGNIFICENT COPLEY PRODUCT THE COMPANY'S SALES OF AUTONOMIC DRUGS INCLUDING ALBUTEROL ACCOUNT FOR ABOUT FOURTEEN PERCENT OF ITS SALES COPLEY ESTIMATED THE RECALL WILL COST SIX MILLION DOLLARS OVER THE NEXT SIX MONTHS FOR THE NINE MONTHS ENDED OCTOBER THIRTY FIRST COPLEY REPORTED NET INCOME OF FOURTEEN POINT EIGHT MILLION DOLLARS OR EIGHTY CENTS A SHARE ON SALES OF SIXTY FOUR POINT SIX MILLION DOLLARS COPLEY SAID IT DISCOVERED THE CONTAMINATED UNITS THROUGH ITS OWN QUALITY CONTROL OPERATIONS COPLEY SAID IT WAS COOPERATING WITH THE FOOD AND DRUG ADMINISTRATION IN THE RECALL A SPOKESWOMAN FOR HOECHST SAID WE HAVE FULL CONFIDENCE IN COPLEY WE HAVE BOUGHT FIFTY ONE PERCENT OF COPLEY AND WE INTEND TO KEEP IT THE DOW JONES INDUSTRIAL AVERAGE CRACKED THE THREE THOUSAND EIGHT HUNDRED LEVEL FOR THE FIRST TIME BUT THE NARROW NATURE OF THE ADVANCE LEFT ANALYSTS UNIMPRESSED STRENGTH IN THE BOND MARKET AND CONTINUED ENTHUSIASM FOR ECONOMICALLY SENSITIVE ISSUES PROPELLED THE INDUSTRIALS WHICH ROSE FIVE POINT OH SIX OR ZERO POINT ONE THREE PERCENT TO THREE THOUSAND EIGHT HUNDRED THREE POINT EIGHT EIGHT A SECOND STRAIGHT CLOSING HIGH THE AVERAGE HAD FLIRTED WITH THREE THOUSAND EIGHT HUNDRED FOR NEARLY TWO WEEKS CYCLICAL TRANSPORTATION ISSUES SURGED LIFTING THE DOW JONES TRANSPORTATION AVERAGE TWENTY THREE POINT THREE EIGHT OR ONE POINT THREE ONE PERCENT TO ONE THOUSAND EIGHT HUNDRED TWO POINT TWO ONE ALSO A SECOND CONSECUTIVE RECORD IT ROSE ONE POINT THREE EIGHT PERCENT WEDNESDAY BUT ANALYSTS SAID THE RALLY THAT HAS POWERED THE DOW AVERAGES TO THESE HEIGHTS MIGHT BE LOSING STEAM MOST BROAD BASED INDEXES LOST GROUND AND ADVANCERS BARELY TOPPED DECLINERS ON THE NEW YORK STOCK EXCHANGE ONE THOUSAND SEVENTY SIX TO ONE THOUSAND FIFTY FOUR VOLUME ON THE BIG BOARD MEANWHILE WAS HEAVY FOR A SECOND STRAIGHT DAY AT THREE HUNDRED SIXTY THREE POINT FOUR MILLION SHARES MORE THAN THREE HUNDRED SEVENTY FIVE POINT ONE MILLION SHARES CHANGED HANDS WEDNESDAY A NEARLY FOUR MONTH HIGH MODEST PRICE MOVEMENT IN THE FACE OF SUCH HEAVY ACTIVITY IS ANOTHER NEGATIVE INDICATOR ANALYSTS SAID QUOTE MY GUT FEELING IS WE HAVE MOVED A LITTLE TOO FAR TOO FAST I THINK WE COULD GET A LITTLE CORRECTION SAID EDWARD COLLINS HEAD OF U. S. EQUITY TRADING AT DAIWA SECURITIES EVEN THE STRENGTH OF THE HIGH FLYING CYCLICAL GROUP SHOWED SIGNS OF EASING ALLIEDSIGNAL ROSE ONE TO SEVENTY SEVEN AND ONE HALF GOODYEAR TIRE ADDED ONE TO FORTY SIX AND MINNESOTA MINING AND MANUFACTURING CLIMBED ONE AND ONE HALF TO ONE HUNDRED SEVEN AND ONE QUARTER BUT GENERAL MOTORS ADVANCED ONLY ONE QUARTER AND DEERE ONE EIGHTH ONE REASON FOR CAUTION WAS A WEAKER THAN EXPECTED READING FROM THE LABOR DEPARTMENT SHOWING THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE SURGED SEVENTY THOUSAND LAST WEEK THE MORE IMPORTANT DECEMBER REPORT ON PAYROLLS COMES THIS MORNING THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX LOST ZERO POINT FOUR THREE OR ZERO POINT ZERO NINE PERCENT TO FOUR HUNDRED SIXTY SEVEN POINT ONE TWO THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED ZERO POINT THREE ONE OR ZERO POINT ONE TWO PERCENT TO TWO HUNDRED FIFTY NINE POINT OH OH AND THE DOW JONES EQUITY MARKET INDEX DROPPED ZERO POINT THREE EIGHT OR ZERO POINT ZERO NINE PERCENT TO FOUR HUNDRED FORTY TWO POINT ONE NINE THE NASDAQ STOCK MARKET THOUGH GAINED FOR A THIRD STRAIGHT DAY THE NASDAQ COMPOSITE INDEX WAS UP TWO POINT THREE SIX OR ZERO POINT THREE ZERO PERCENT TO SEVEN HUNDRED EIGHTY POINT FOUR ONE BUOYED BY STOCKS INCLUDING MICROSOFT WHICH ROSE TWO AND THREE EIGHTHS TO EIGHTY FOUR AND FIVE EIGHTHS M. C. I. COMMUNICATIONS WHICH GAINED ONE AND THREE EIGHTHS TO TWENTY EIGHT AND ONE QUARTER AND ADOBE SYSTEMS UP FOUR TO TWENTY SIX AND ONE HALF THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX EXTENDED ITS WINNING STREAK TO ELEVEN SESSIONS INCHING UP ZERO POINT TWO ONE OR ZERO POINT ZERO FOUR PERCENT TO FOUR HUNDRED SEVENTY NINE POINT OH OH MANY RETAILING STOCKS HAD A ROUGH RIDE WITH CIRCUIT CITY STORES DOWN FOUR AND ONE HALF OR TWENTY PERCENT ON MARKET LEADING VOLUME OF SEVEN POINT SIX MILLION SHARES THE ELECTRONICS GOODS RETAILER SAID IT WILL BREAK FROM TRADITION AND POSSIBLY TAKE THE LEAD IN PRICE CUTTING INITIATIVES IN CONSUMER ELECTRONICS RETAILING SHARES OF BEST BUY WHICH COMPETES WITH CIRCUIT CITY IN MANY REGIONS SKIDDED SEVEN AND ONE HALF OR SIXTEEN PERCENT TO THIRTY NINE AND THREE QUARTERS TANDY CORPORATION WHICH OPERATES RADIO SHACK STORES LOST ONE AND ONE QUARTER TO FORTY SIX AND ONE EIGHTH INVESTORS ALSO WERE DISAPPOINTED BY THE GENERALLY LACKLUSTER TONE OF RETAILERS' DECEMBER SALES FIGURES RELEASED YESTERDAY SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH AMONG DECLINERS KMART SLUMPED ONE AND ONE HALF TO NINETEEN AND ONE HALF WOOLWORTH SEVEN EIGHTHS TO TWENTY FOUR AND SEVEN EIGHTHS J. C. PENNEY ONE TO FIFTY ONE AND FIVE EIGHTHS WAL MART SEVEN EIGHTHS TO TWENTY FOUR AND FIVE EIGHTHS AND BARNES AND NOBLE TWO TO TWENTY TWO AND SEVEN EIGHTHS LIMITED INCORPORATED THOUGH ROSE SEVEN EIGHTHS TO EIGHTEEN THE APPAREL RETAILER SAID DECEMBER SALES ROSE EIGHT PERCENT GAP ROCKETED THREE AND ONE EIGHTH TO FORTY ONE AND ONE HALF SALES WERE UP FOURTEEN PERCENT IN THE PERIOD AT THE APPAREL STORE COMPANY COPLEY PHARMACEUTICAL PLUNGED EIGHT OR TWENTY ONE POINT THREE PERCENT TO TWENTY NINE AND ONE HALF ON NEWS LATE WEDNESDAY THAT THE COMPANY IS VOLUNTARILY RECALLING ALL LOTS OF ITS TWENTY MILLILITER VIALS OF ALBUTEROL SULFATE INHALATION SOLUTION COPLEY SAID THE MOVE WILL COST ABOUT SIX MILLION DOLLARS OVER THE CURRENT AND NEXT FISCAL QUARTER SHARES OF VALUE HEALTH JUMPED THREE AND ONE QUARTER OR TEN POINT ONE PERCENT TO THIRTY FIVE AND ONE HALF AFTER THE COMPANY SAID FORD MOTOR AND THE UNITED AUTO WORKERS SELECTED ITS VALUERX UNIT TO ADMINISTER A NATIONWIDE RETAIL AND MAIL ORDER DRUG BENEFITS PROGRAM VALUE HEALTH SAID IT EXPECTS THE AGREEMENT TO PRODUCE NINETY MILLION DOLLARS IN ANNUAL REVENUE TWO PROMINENT MEDIA COMPANIES ON THE BIG BOARD WERE UP SHARPLY SHARES OF WASHINGTON POST GAINED TWENTY AND THREE QUARTERS OR SEVEN POINT NINE PERCENT TO TWO HUNDRED EIGHTY TWO AND ONE QUARTER AND C. B. S. FOUR AND FIVE EIGHTHS TO TWO HUNDRED EIGHTY FOUR AND SEVEN EIGHTHS OFFICIALS AT WASHINGTON POST RESPONDING TO A BIG BOARD REQUEST TO EXPLAIN UNUSUAL ACTIVITY IN ITS STOCK SAID NO ANNOUNCEMENTS REGARDING COMPANY ACTIVITIES HAD BEEN MADE OR WERE PLANNED LIKEWISE THERE WAS NO NEWS TO EXPLAIN THE JUMP IN C. B. S. GERRITY OIL AND GAS SHED ONE AND ONE HALF TO TEN AND FIVE EIGHTHS AFTER IT SAID IT IS NO LONGER SEEKING POTENTIAL BUYERS FOR THE COMPANY GERRITY SAID IT ADOPTED A BUSINESS PLAN UNDER WHICH IT WILL EXPAND INTO NEW MARKETS ON A SELECTED BASIS P. S. GROUP WAS OFF ONE AND THREE QUARTERS OR TWELVE PERCENT AT THIRTEEN LATE WEDNESDAY THE COMPANY SAID IT HAD DISCONTINUED TALKS WITH A GROUP CONTROLLED BY THE PRITZKER FAMILY REGARDING THE SALE OF P. S. GROUP'S TRAVEL MANAGEMENT UNIT SHARES OF GENSIA SLIPPED TWO TO TWENTY THREE AND ONE EIGHTH AFTER THE COMPANY LATE WEDNESDAY SAID IT WAS NOTIFIED BY REGULATORY AUTHORITIES THAT SUCCESSFUL RESULTS FROM ITS ONGOING STUDY WITH PROTARA USED IN CORONARY SURGERY WILL BE REQUIRED PRIOR TO POTENTIAL APPROVAL TO MARKET THE DRUG SHANGHAI PETROCHEMICAL DROPPED THREE AND ONE EIGHTH TO THIRTY NINE AND FIVE EIGHTHS THE COMPANY SAID IT INCREASED ITS INVESTMENTS IN TWO ASSOCIATED COMPANIES INVOLVED IN TRADING AND INVESTMENTS AND FORMED A NEW COMPANY THAT WILL OWN GAS STATIONS AND TRADE IN PETROCHEMICAL PRODUCTS BRUNSWICK JUMPED ONE AND THREE EIGHTHS TO TWENTY ON HEAVY VOLUME ANALYSTS ATTRIBUTED THE ACTION IN PART TO INCREASING CONSUMER CONFIDENCE AND TO INTEREST SPURRED BY THE FORTHCOMING NEW YORK BOAT SHOW DIM THE LIGHTS PUT FRESH FLOWERS ON THE TABLE AND SUMMON THE STROLLING VIOLINIST WALL STREET JUST LOVES C. U. C. INTERNATIONAL ACCORDING TO ZACKS INVESTMENT RESEARCH TEN OF THE ELEVEN WALL STREET FIRMS THAT FOLLOW C. U. C. RATE IT AS A BUY THE STOCK ROSE FORTY ONE PERCENT IN NINETEEN NINETY TWO AND EIGHTY SIX PERCENT IN NINETEEN NINETY THREE IT IS AMONG THE TEN MOST EXPENSIVE STOCKS ON THE NEW YORK STOCK EXCHANGE ACCORDING TO A RECENT TALLY BY KIDDER PEABODY SKEPTICS CONCEDE THAT C. U. C. IS A GOOD COMPANY BUT THEY ARGUE THAT THE SHARES ARE DUE FOR A FALL QUOTE IT'S TIME TO TAKE SOME MONEY OUT QUOTE SAYS ANALYST JOHN B. FRANCK AT P. N. C. FINANCIAL IN PHILADELPHIA LONE BEAR AMONG THE ELEVEN ANALYSTS WHY BE GREEDY AT YESTERDAY'S PRICE OF THIRTY FOUR AND ONE HALF DOWN ONE C. U. C. SHARES SELL FOR A TOWERING FORTY EIGHT TIMES THE PAST FOUR QUARTERS' EARNINGS THAT'S THE KIND OF GIDDY MULTIPLE INVESTORS ATTACH TO COMPANIES WHEN WALL STREET VIEWS THEM THROUGH A ROMANTIC HAZE WAL MART STORES HOME DEPOT AND U. S. SURGICAL CARRIED SUCH MULTIPLES A YEAR OR TWO AGO THOSE STOCKS HAVE STUMBLED NOT BECAUSE THEY WERE BAD COMPANIES BUT BECAUSE RED HOT EARNINGS GROWTH IS HARD TO SUSTAIN C. U. C. BASED IN STAMFORD CONNECTICUT OPERATES VARIOUS DISCOUNT BUYING SERVICES CONSUMERS PAY AN ANNUAL FEE SUCH AS FIFTY DOLLARS A YEAR TO GET DISCOUNTS ON SHOPPING TRAVEL RESTAURANT DINING OR OTHER ITEMS THE DISCOUNT PROGRAMS ARE SOLD MAINLY THROUGH CREDIT CARD ISSUERS SUCH AS BANKS WHICH OFTEN PUT THEIR OWN NAMES ON THEM THE STOCK'S SIZZLE STEMS FROM C. U. C.'S PROSPECTS AS A FIRST CLASS TRAVELER ON THE INFORMATION SUPERHIGHWAY INVESTORS SEE THE TELEVISION TELEPHONE AND COMPUTER BLENDING INTO ONE HIGH POWERED DEVICE THEY FIGURE THE COMPANIES THAT CAN PROVIDE CONTENT FOR IT WILL THRIVE C. U. C. IS ONE SUCH COMPANY IT ALREADY SELLS ITS SERVICES THROUGH SEVERAL COMPUTER NETWORKS SUCH AS COMPUSERVE AND AMERICA ONLINE AND IT HAS SIGNED AGREEMENTS TO PROVIDE CONTENT FOR INTERACTIVE TELEVISION PILOT PROGRAMS IN ORLANDO FLORIDA WITH TIME WARNER AND CASTRO VALLEY CALIFORNIA WITH A JOINT VENTURE OF AMERICAN TELEPHONE AND TELEGRAPH AND VIACOM THE WHOLE INTERACTIVE MEDIA AREA HAS TREMENDOUS POTENTIAL FOR THE NINETEEN NINETIES SAYS RAY HIRSCH A MONEY MANAGER AT I. D. S. IN MINNEAPOLIS WHICH OWNS THE STOCK HE CAUTIONS HOWEVER THAT IT'S IMPOSSIBLE TO TELL WHICH COMPANIES WILL BE THE WINNERS AND LOSERS OVER THE NEXT COUPLE OF YEARS SO INVESTORS WHO WANT TO CRUISE THE INFORMATION HIGHWAY SHOULD BUY A CARAVAN OF SEVERAL STOCKS CONSUMERS TODAY ARE VERY COST CONSCIOUS AND C. U. C. FITS RIGHT INTO THAT THEME FOR THE NINETEEN NINETIES SAYS CHARLES W. HOOPER OF FOUNDERS SPECIAL FUND IN DENVER MR. HOOPER'S FUND OWNS ONE HUNDRED TWENTY FIVE THOUSAND C. U. C. SHARES HE SOLD SEVENTY FIVE THOUSAND LAST FALL BECAUSE I THOUGHT IT WAS EXPENSIVE BUT PLANS TO HANG ON TO THE REST HE LIKES C. U. C.'S EXPOSURE TO INTERACTIVE TELEVISION AND IS ENTHUSIASTIC ABOUT ITS PLANS TO EXPAND IN EUROPE NAOMI TALISH AN ANALYST AT MORGAN STANLEY IS A MAJOR PROPONENT OF THE STOCK C. U. C. CONTINUES TO ADD NEW MEMBERS SHE SAYS IT ALREADY HAS SOME TWENTY EIGHT MILLION ALTHOUGH PEOPLE ARE DOUBLE COUNTED IF THEY BELONG TO SAY A TRAVEL CLUB AND A DISCOUNT DINING SERVICE AND MS. TALISH THINKS IT WILL ADD ABOUT TWO POINT FIVE MILLION THIS YEAR AT THE SAME TIME SHE SAYS C. U. C. HAS LOWERED THE COST OF ACQUIRING MEMBERS ALLOWING IT TO BOOK A SLIGHT PROFIT IN THE FIRST YEAR MS. TALISH ESTIMATES THAT C. U. C. WILL EARN SEVENTY SIX CENTS A SHARE IN THE CURRENT FISCAL YEAR THAT ENDS JANUARY THIRTY FIRST THEN NINETY EIGHT CENTS A SHARE NEXT YEAR AND ONE DOLLAR AND TWENTY SEVEN CENTS IN THE YEAR ENDING IN JANUARY NINETEEN NINETY SIX QUOTE MY FIVE YEAR PROJECTED GROWTH RATE IS THIRTY PERCENT QUOTE SHE SAYS I THINK THE GROWTH IS VERY PREDICTABLE AND THAT DOESN'T INCLUDE IMPACT FROM THE INTERACTIVE SIDE SHE THINKS THE SHARES COULD HIT FORTY FIVE DOLLARS BY MID NINETEEN NINETY FIVE BUT MR. FRANCK OF P. N. C. WONDERS WHETHER INVESTORS ARE WISE TO ASSUME THAT ANY COMPANY'S EARNINGS CAN GROW THIRTY PERCENT A YEAR CONSISTENTLY IN INTERACTIVE COMMUNICATIONS HE SAYS A MYRIAD OF THINGS WILL COME INTO THE MARKETPLACE NOBODY KNOWS WHAT WILL CATCH ON TO LOOK AT C. U. C.'S STOCK PRICE SAYS MR. FRANCK YOU WOULD THINK THAT PEOPLE ARE GOING TO DO ALL THEIR SHOPPING BY PUNCHING BUTTONS AT HOME IF THIS IS REALLY THE WAVE OF THE FUTURE CAN YOU IMAGINE THE VACANT RETAIL SPACE ALL THE MALLS SHORT SELLERS INVESTORS WHO BET THAT A PARTICULAR STOCK WILL DECLINE HAVE LOST A LOT OF MONEY IN C. U. C. ROBERT L. RENCK HEAD OF A SMALL BROKERAGE AND MONEY MANAGEMENT FIRM SAYS HE URGED SHORT SALES A YEAR OR TWO AGO BUT ISN'T DOING SO NOW QUOTE MY GRANDDADDY SAID NEVER STAND IN FRONT OF A FREIGHT TRAIN QUOTE HE SAYS STILL MR. RENCK SAYS HE WOULD RATHER SELL C. U. C. SHARES THAN BUY THEM IT REMAINS TO BE SEEN WHETHER THEY HAVE A PROPRIETARY POSITION IN ELECTRONIC SHOPPING HE SAYS THE STOCK'S VALUATION IS EXCESSIVE IT'S ALWAYS BEEN HIGH BUT NOW IT'S EXTREMELY HIGH RISKY BETS NABBED THE NUMBER ONE SPOTS IN THE LATEST MUTUAL FUND PERFORMANCE WARS LEADING THE PACK FOR THE QUARTER YEAR AND LONGER PERIODS WERE FOUR AREAS FRAUGHT WITH TREACHERY GOLD BIOTECHNOLOGY SMALL COMPANIES AND SOUTHEAST ASIAN STOCKS THESE FUNDS LOOK GREAT NOW IN THE PERFORMANCE CHARTS BUT MANY HAVE HAD WILD UPS AND DOWNS IN THE PAST AND PROBABLY WILL HAVE MORE THE BEST PERFORMING FUND FOR THE YEAR LEXINGTON STRATEGIC INVESTMENTS PUTS ITS MONEY IN SMALLER SOUTH AFRICAN MINING COMPANIES THE RISE IN GOLD PRICES CATAPULTED THE FUND OUT OF ITS POSITION AS ONE OF THE WORST PERFORMING FUNDS FOR THE PAST TEN YEARS FIDELITY SELECT BIOTECHNOLOGY PORTFOLIO RACKED UP THE BEST FIVE YEAR PERFORMANCE DESPITE SOME MAJOR CORPORATE DISASTERS IN THE INDUSTRY IN THE PAST TWO YEARS IN THE FOURTH QUARTER THE BEST PERFORMER WAS MORGAN STANLEY INSTITUTIONAL FUND ASIAN EQUITY PORTFOLIO WHICH IS HEAVILY INVESTED IN MALAYSIA THAILAND AND HONG KONG TWENTIETH CENTURY GIFTRUST INVESTORS IS CELEBRATING ITS RECENT TEN YEAR ANNIVERSARY BY BEING THE LEADING FUND IN THAT TIME PERIOD THE FUND INVESTS IN SMALL COMPANIES THAT ARE GROWING QUICKLY QUOTE WE ARE BUYING HOT ACCELERATING COMPANIES WITH GREAT EARNINGS GROWTH QUOTE SAYS JAMES E. STOWERS THE THIRD WHO HEADS THE TEAM THAT MANAGES THE KANSAS CITY MISSOURI BASED GIFTRUST FUND LAUNCHED IN NOVEMBER NINETEEN EIGHTY THREE THE FUND FAVORS SHARES OF SMALL YOUNG COMPANIES THAT HAVE EXCITING PROSPECTS THE FIFTY OR SO STOCKS IN THE FUND HAVE AN AVERAGE MARKET VALUE OF TWO HUNDRED FIFTY MILLION DOLLARS AND THE FUND'S SMALL SIZE ONE HUNDRED SIXTY FOUR MILLION DOLLARS IN TOTAL ASSETS PERFECTLY SUITS THIS STYLE OF INVESTING ANALYSTS SAY THE HOT MARKET FOR INITIAL PUBLIC OFFERINGS IN NINETEEN NINETY THREE PROVIDED A SLEW OF ADDITIONAL SMALL STOCKS WITH FAST GROWTH PROSPECTS THE I. P. O.S AND OTHER STOCK OFFERINGS HELPED TO GIVE AN EXTRA BOOST TO THE FUND WHICH HAD A TOTAL RETURN PRICE CHANGE PLUS DIVIDENDS OF THIRTY ONE POINT FOUR PERCENT IN NINETEEN NINETY THREE THE FUND IS SMALL ENOUGH THAT WE ARE ABLE TO BUY INTO THOSE DEALS THAT GIVE SOME PERK TO THE FUND MR. STOWERS SAYS AMONG THE HOT I. P. O.S BOUGHT BY THE FUND ARE MICROCHIP TECHNOLOGY INCORPORATED AND GENERAL NUTRITION INCORPORATED WHEN INVESTING IN SUCH SMALL STOCKS MR. STOWERS SAYS IT'S IMPORTANT TO BE ABLE TO REACT QUICKLY THE FUND HAS A RELATIVELY HIGH ANNUAL AVERAGE TURNOVER RATE OF ONE HUNDRED FORTY PERCENT IN THE PAST FIVE YEARS WE DON'T TURN OVER THE WHOLE FUND EVERY YEAR BUT WE HAVE TO MOVE QUICKLY HE SAYS IN THE SMALL CAP AREA YOU OFTEN SEE A SHOOTING STAR THAT FLAMES OUT REALLY FAST IF WE SEE THAT HAPPENING WE'RE HEADED FOR THE DOOR VERY QUICKLY AS OF OCTOBER THIRTY FIRST THE FUND WAS WEIGHTED ELEVEN PERCENT IN COMPUTER SOFTWARE EIGHT PERCENT IN COMMUNICATIONS SERVICES TWELVE PERCENT IN SEMICONDUCTOR AND RELATED ELECTRONIC COMPONENTS AND ELEVEN PERCENT IN RETAIL STOCKS MR. STOWERS SAYS THERE ARE FIVE PORTFOLIO MANAGERS PICKING STOCKS FOR THE FUND BY TRACKING SOME TEN THOUSAND TO TWELVE THOUSAND COMPANIES EVERY QUARTER THE STOCK PICKERS ARE LOOKING FOR COMPANIES WITH TOP AND BOTTOMLINE THAT MEANS REVENUE AND EARNINGS GROWTH HE SAYS THEY DON'T WANT TO OWN COMPANIES THAT ARE JUST INCREASING EARNINGS BY CUTTING EXPENSES WE'RE CAREFUL NOT TO OWN THE KIND OF NAMES THAT GET GLORIFIED OR HAVE THE FEELING OF WALKING ON WATER HE SAYS BUT THIS FUND IS NOT FOR THE GREEDY INDIVIDUALS CAN'T INVEST IN THE GIFTRUST PORTFOLIO FOR THEMSELVES SHARES OF THE FUND MUST BE GIVEN AS A GIFT TO ANOTHER INDIVIDUAL OR ORGANIZATION AND MUST BE HELD EITHER FOR A TEN YEAR PERIOD OR FOR THE TIME IT TAKES A MINOR TO REACH ADULTHOOD THESE RESTRICTIONS HELP TO KEEP THE FUND SMALL AND AGILE IT'S A NO LOAD FUND WITH AN ANNUAL MANAGEMENT FEE OF ONE PERCENT FIDELITY SELECT BIOTECHNOLOGY PORTFOLIO MANAGED TO BE THE BEST PERFORMER FOR THE PAST FIVE YEARS EVEN THOUGH MANY OF THE STOCKS IT OWNS ARE UNLOVED TODAY THE FUND IN NINETEEN NINETY THREE HAD ONLY A GAIN OF ZERO POINT SEVEN PERCENT THAT FOLLOWED A NINETEEN NINETY TWO LOSS OF TEN POINT THREE EIGHT PERCENT ONLY AFTER NINETEEN NINETY ONE'S LEAP OF NINETY NINE POINT FIVE ONE PERCENT GETS FACTORED INTO THE FIVE YEAR PERFORMANCE DOES THE FUND RISE TO THE TOP DURING THAT PERIOD QUOTE WOW I CAN'T BELIEVE WE'RE ON THE LIST QUOTE SAYS KAREN FIRESTONE THE PORTFOLIO MANAGER THE GROUP WAS ABYSMAL IN NINETEEN NINETY TWO AND IT STARTED OUT REALLY BAD IN NINETEEN NINETY THREE THE STOCKS SHOWED SIGNS OF LIFE LATE IN THE YEAR BUT THE BIOTECHNOLOGY GROUP OF THE DOW JONES EQUITY MARKET INDEX WOUND UP DOWN SEVEN POINT FIVE TWO PERCENT IN NINETEEN NINETY THREE IN THE FIRST QUARTER OF NINETEEN NINETY THREE BIOTECHNOLOGY STOCKS HIT BOTTOM AND DIDN'T START TO LOOK BETTER UNTIL THE SECOND HALF AND MUCH OF THE GAINS HAVE COME IN ONLY A FEW INDIVIDUAL STOCKS MS. FIRESTONE SAYS ONE OF THE FUND'S BIGGEST HOLDINGS CHIRON CORPORATION AT EIGHTY FOUR DOLLARS IS TRADING AT MORE THAN DOUBLE ITS FIFTY TWO WEEK LOW OF FORTY DOLLARS THE STOCK HAS BEEN RISING ON THE BELIEF THAT EARNINGS WILL BENEFIT FROM SALES OF BETASERON ITS NEW DRUG FOR MULTIPLE SCLEROSIS ANOTHER BIG HOLDING GENENTECH INCORPORATED AT FORTY NINE DOLLARS AND TWENTY FIVE CENTS IS UP MORE THAN FIFTY SEVEN PERCENT FROM ITS FIFTY TWO WEEK LOW GENENTECH HAS AN IMPRESSIVE PIPELINE OF NEW PRODUCTS THE BACKING OF GIANT ROCHE HOLDING OF SWITZERLAND AND THE POSSIBILITY OF A TAKEOVER BY ROCHE THE FOOD AND DRUG ADMINISTRATION RECENTLY APPROVED GENENTECH'S DNASE TREATMENT FOR CYSTIC FIBROSIS TO BE MARKETED UNDER THE BRAND NAME PULMOZYME OWNING SOME STOCKS WITH GIANT GAINS IS ONLY PART OF THE STORY THE FUND WAS HELPED GREATLY BY NOT OWNING SEVERAL STOCKS THAT DIVED THE FUND DIDN'T OWN MEDIMMUNE INCORPORATED WHICH IS NOW TRADING AT TWELVE LESS THAN HALF OF ITS FIFTY TWO WEEK HIGH OF THIRTY TWO POINT SIX TWO FIVE WE CAN SAY WE DODGED SOME DISASTERS BUT THE FUND ISN'T UP TWENTY PERCENT SHE SAYS NOT EVERY BUST WAS AVOIDED IF I COULD DO SOMETHING OVER AGAIN IN NINETEEN NINETY THREE IT WOULD BE SYNERGEN MS. FIRESTONE SAYS THE DATA WERE SO ENCOURAGING I WAS SEDUCED INTO BELIEVING IN ONE DAY SYNERGEN INCORPORATED PLUNGED SIXTY EIGHT PERCENT WHEN IT ANNOUNCED DISAPPOINTING RESULTS OF ITS DRUG ANTRIL FOR SEPSIS A BLOOD INFECTION THE STOCK CLOSED AT THIRTEEN DOLLARS AND TWENTY FIVE CENTS YESTERDAY COMPARED WITH A YEARLY HIGH IN THE MID SIXTIES MS. FIRESTONE BELIEVES THE GROUP WILL START DRAWING A LOT OF ATTENTION IN NINETEEN NINETY FOUR AS MANY MORE PRODUCTS GO THROUGH LATE STAGE CLINICAL TRIALS AND START SHOWING STRONG RESULTS ASCENDING TO BEST FROM WORST LEXINGTON STRATEGIC INVESTMENTS POSTED A GAIN OF TWO HUNDRED SIXTY NINE POINT SEVEN EIGHT PERCENT FOR NINETEEN NINETY THREE JUST TWELVE MONTHS AGO THE FUND WAS LISTED AS THE WORST PERFORMING FUND OF NINETEEN NINETY TWO WITH A LOSS OF SIXTY POINT SEVEN ONE PERCENT YOU WIN SOME YOU LOSE SOME SAYS CAESAR BRYAN WHO BEGAN MANAGING THE FUND AT THE BEGINNING OF NINETEEN NINETY TWO QUOTE IT WAS JUST HORRIBLE QUOTE IN NINETEEN NINETY TWO IT'S WHAT HAPPENS TOMORROW THAT COUNTS MR. BRYAN IS STICKING WITH GOLD WHEN HE TOOK CHARGE HE DECIDED TO CONCENTRATE THE FUND'S HOLDINGS WHICH NOW COMPRISE TWENTY SIX STOCKS IN SMALL SOUTH AFRICAN GOLD MINING COMPANIES IN NINETEEN NINETY THREE MANY OF THOSE COMPANIES MANAGED TO BOUNCE BACK FROM TOUGH TIMES AND THEIR STOCK PRICES SOARED GOLD PRICES GOT AS HIGH AS AROUND FOUR HUNDRED FIFTEEN DOLLARS AN OUNCE DURING THE SUMMER AFTER STARTING THE YEAR AT THREE HUNDRED THIRTY DOLLARS AN OUNCE GOLD PRICES ARE NOW AROUND THREE HUNDRED NINETY DOLLARS MR. BRYAN BELIEVES THE BULL MARKET FOR GOLD STILL HAS A WAYS TO GO GOLD HAS BEEN IN A BEAR MARKET FOR THE LAST THIRTEEN YEARS AND IT IS JUST OFF THE BOTTOM HE SAYS THERE IS CONTINUED STRONG DEMAND FOR GOLD FROM THE FAR EAST AND SOUTHEAST ASIA SAYS MR. BRYAN SOME INVESTORS ARE BUYING GOLD AS A HEDGE AGAINST THE CHANCE OF INCREASING INFLATION IN THEIR GROWING ECONOMIES GOLD IS A LITTLE LIKE CARS OR MINK COATS HE ADDS WHERE WEALTH IS BEING CREATED THERE IS A GREATER DEMAND FOR GOLD ONE OF THE BIGGEST SUCCESS STORIES IN THE FUND IS WESTERN AREAS GOLD MINING NOW TRADING AROUND EIGHT DOLLARS AND FIFTY CENTS MORE THAN ELEVEN TIMES ABOVE THE BEGINNING OF NINETEEN NINETY THREE SOME OF THE FUND'S OTHER BIG WINNING POSITIONS ARE KINROSS MINES AND RANDFONTEIN ESTATES GOLD MINING AN EASING OF THE SOUTH AFRICAN POLITICAL SITUATION ALSO HELPED TO BOOST THE FUND A YEAR AGO MR. BRYAN TOOK A TRIP TO SOUTH AFRICA TO MAKE THE DECISION TO STAY IN THESE STOCKS MANY OF WHICH NEED TO CUT COSTS AND FIND NEW ORE AFTER WAITING OUT THE WORST MR. BRYAN SAYS HE IS STAYING WHERE I AM RIGHT NOW IN GOLD STOCKS THE FUND IS SLATED AS A NATURAL RESOURCES FUND AND COULD MOVE INTO OTHER AREAS SUCH AS BASE METALS SOMETHING HE IS STARTING TO STUDY LEXINGTON MANAGEMENT CORPORATION TOOK OVER THE MANAGEMENT OF LEXINGTON STRATEGIC INVESTMENTS IN NINETEEN NINETY TWO THE FUND CARRIES A CHARGE OR QUOTE LOAD QUOTE OF AS MUCH AS FIVE POINT SEVEN FIVE PERCENT THE FUND'S OPERATING EXPENSES WERE A HIGH FOUR POINT OH EIGHT PERCENT OF THE FUND'S ASSETS AT THE END OF NINETEEN NINETY TWO WHEN THE FUND HELD EIGHT POINT SIX MILLION DOLLARS BUT EXPENSES AS A PERCENTAGE OF ASSETS SHOULD DECLINE WITH THE RAPID GROWTH OF THE FUND SINCE THEN WHICH HAS JUMPED TO EIGHTY ONE MILLION DOLLARS MORGAN STANLEY INSTITUTIONAL FUND ASIAN EQUITY PORTFOLIO HAS HAD A DAZZLING PERFORMANCE SINCE ITS INCEPTION THREE YEARS AGO THE SINGAPORE BASED FUND HAD A FOURTH QUARTER GAIN OF FORTY NINE POINT FIVE SIX PERCENT A SHINING ENDING TO A YEAR THAT BROUGHT A ONE HUNDRED FIVE POINT SEVEN PERCENT LEAP THIS ISN'T A FUND FOR EVERYONE IT'S ONLY FOR WEALTHY INVESTORS WHO CAN PUT UP THE FIVE HUNDRED THOUSAND DOLLAR MINIMUM INITIAL PURCHASE THE FUND INVESTS HEAVILY IN HONG KONG MALAYSIA SINGAPORE AND THAILAND IT ALSO HAS STOCKS FROM CHINA INDONESIA THE PHILIPPINES AND TAIWAN EAN WAH CHIN PORTFOLIO MANAGER SAYS THE ASIAN MARKETS SHOULD DO REASONABLY WELL IN THIS YEAR'S FIRST HALF BUT NOT AS SPECTACULARLY AS THEY HAVE BEEN THESE MARKETS HAVE GOTTEN VERY SPECULATIVE THERE'S NO ARGUMENT ABOUT IT SHE SAYS NOW SMALL LOCAL INVESTORS ARE STARTING TO SNATCH UP SHARES SHE SAYS ASIANS ARE STARTING TO BENEFIT FROM THE REGION'S GROWING ECONOMIES AND HAVE SOME MONEY TO INVEST LOCAL GOVERNMENTS ARE PROMOTING THE USE OF THE STOCK MARKET THESE FACTORS ADDED TO THE MONEY POURING INTO THE MARKETS FROM THE U. S. AND JAPAN ARE PUSHING STOCK PRICES EVEN HIGHER THE FUND HAS ONLY ABOUT TWO HUNDRED EIGHTY THREE MILLION DOLLARS IN TOTAL ASSETS WHICH IS SPREAD OUT AMONG ONE HUNDRED SIXTY STOCKS THE PORTFOLIO MANAGER SAYS THE FUND HOLDS ONLY A SMALL PORTION OF EACH COMPANY BECAUSE SUCH STOCKS CAN BE DIFFICULT TO TRADE SOME OF THE LARGER HOLDINGS INCLUDE HUTCHISON WHAMPOA A HONG KONG CONGLOMERATE IN THE TRANSPORTATION AND TELECOMMUNICATIONS INDUSTRIES AND BANGKOK BANK IN THAILAND THE STOCK PICKING TEAM'S MEMBERS ARE ALL FROM THE AREA WHERE THE FUND CHOOSES ITS STOCKS WE OPERATE FROM ASIA OUR WHOLE LIFE IS ASIA OUR FUTURE IS ASIA THE FUND MANAGER SAYS WE KNOW HOW TO GET THE RIGHT COMPANY BOOKS NOT THE ONES THEY SHOW THE TAX COLLECTORS YOUR OTHERWISE EXCELLENT DECEMBER SIXTEENTH PAGE ONE EXPOSE ON FEDERAL JOBS PROGRAMS RECYCLED AN ELITIST CLICHE ABOUT JOBS IN THE FAST FOOD INDUSTRY WHY SHOULD OUR JOBS BE PASSED OFF AS MERELY QUOTE FLIPPING HAMBURGERS QUOTE WHEN IN REALITY OURS IS AN INDUSTRY FILLED WITH OPPORTUNITY FOR HARD WORKERS HOW ELSE CAN YOU EXPLAIN THE HUNDREDS OF THOUSANDS OF SUPERVISORS MANAGERS AND ASSISTANT MANAGERS EARNING SOLID SALARIES IN AN INDUSTRY THAT BOASTS TWO HUNDRED FIFTY THOUSAND CHAIN RESTAURANT OUTLETS MOST OF THESE DETERMINED MEN AND WOMEN GOT THEIR START PREPARING FOOD LEARNING TEAMWORK AND ALL THE OTHER CHALLENGING SKILLS THAT ENABLE CHAIN RESTAURANTS TO SERVE MILLIONS OF CUSTOMERS DAILY FLIPPING HAMBURGERS DOESN'T ACCURATELY DESCRIBE OUR BUSINESS ANY MORE THAN FLIPPING NEWSPAPERS ONTO DOORSTEPS DESCRIBES JOBS IN JOURNALISM AFTER FIVE MONTHS OF PHONE CALLS LETTER WRITING AND SCHMOOZING AT EMBASSY RECEPTIONS I FINALLY GOT THE CALL MY CUBAN VISA HAD ARRIVED FROM HAVANA HOWEVER LESS THAN TWENTY FOUR HOURS BEFORE I WAS TO LEAVE I WAS TOLD THE VISA HAD BEEN REVOKED DUE TO INCORRECT POLITICAL STATEMENTS MADE BY ME AT A COUNCIL ON FOREIGN RELATIONS MEETING SEVERAL DAYS BEFORE THE STORY OF MY FAILED ATTEMPTS TO GET INTO CUBA REVEALS MORE THAN THE EXTRAORDINARY DIFFICULTIES INVOLVED IN DEALING WITH THE FICKLE CUBAN BUREAUCRACY IT SUGGESTS THAT THE U. S. ECONOMIC EMBARGO OF CUBA IS NOT THE OVERRIDING CONCERN OF THE CUBAN LEADERSHIP AT THE MOMENT AS THE READERS OF THESE PAGES ARE LIKELY AWARE THE JOURNAL EDITORIAL POLICY HAS HARDLY BEEN SYMPATHETIC TO FIDEL CASTRO'S CALLS FOR LIFTING THE EMBARGO IN FACT THE EMBARGO SEEMED JUSTIFIABLE AS LONG AS MR. CASTRO ACTED AS THE FUNDING MECHANISM FOR POLITICAL SUBVERSION AROUND THE WORLD AND AS LONG AS THE CUBAN ECONOMY WAS CLEARLY UNDER HIS CONTROL HOWEVER LAST YEAR THERE OCCURRED IN CUBA SOME REMARKABLE ECONOMIC TRANSFORMATIONS THAT HAVE FORCED MANY TO RE THINK THE EMBARGO WHEN CUBA LOST ITS AID FROM THE OLD SOVIET BLOC THE CUBAN ECONOMY WENT INTO A NOSEDIVE THIS WAS NOT UNEXPECTED SINCE THE SOVIETS AND THEIR SATELLITES WERE SUBSIDIZING APPROXIMATELY TWENTY FIVE PERCENT OF CUBA'S GROSS NATIONAL PRODUCT AND PROVIDING ALMOST ALL OF CUBA'S HARD CURRENCY EARNINGS THROUGH FAVORABLE TRADE DEALINGS THE INABILITY OF THE CUBAN ECONOMIC MODEL SUCH AS IT WAS TO SUSTAIN ITSELF WAS CLEAR TO ANY ANALYST EXCEPT FIDEL AND THE SYCOPHANTS WITH WHOM HE SURROUNDS HIMSELF BUT DESPERATE SITUATIONS CALL FOR DESPERATE MEASURES AND LAST SUMMER THE CLOSED DOOR OF THE CUBAN ECONOMY BEGAN TO CRACK OPEN THE FIRST AND MOST DRAMATIC MEASURE WAS THE DECISION LAST JULY TO ALLOW MOST CUBAN CITIZENS TO HOLD AND TRADE U. S. DOLLARS THE SIGNIFICANCE OF ALLOWING CUBANS TO LEGALLY TRADE IN DOLLARS IS THAT THE CUBAN GOVERNMENT IS NO LONGER THE SOLE EMPLOYER OR INSTIGATOR OF ECONOMIC ACTIVITY CUBANS WHO GET DOLLARS FROM TIPS RELATIVES ABROAD OR BARTER CAN NOW PAY OTHER CUBANS FOR GOODS AND SERVICES IN A CURRENCY OUTSIDE THE GOVERNMENT'S CONTROL WHILE MUCH OF THIS ECONOMIC ACTIVITY IS STILL UNDERGROUND THE DOLLAR PROFITS ACCRUED CAN BE OPENLY SPENT AND EVEN PLACED IN DOLLAR SAVINGS ACCOUNTS AT ABOUT THE SAME TIME THE DOLLAR WAS LEGALIZED MORE THAN ONE HUNDRED PRIVATE OCCUPATIONS WERE LEGALIZED INCLUDING SHOEMAKERS TAXI DRIVERS REPAIRMEN AND CERTAIN FARMERS MANY OF THE RESTRICTIONS PLACED ON THE CUBAN BUSINESS SECTOR REMAIN ONEROUS UNIVERSITY GRADUATES ARE PROHIBITED FROM OPERATING BUSINESSES THE GOVERNMENT RESERVES THE RIGHT TO SUSPEND ANY BUSINESS ARBITRARILY ET CETERA AND CUBAN CITIZENS ARE STILL DENIED MANY ECONOMIC RIGHTS OF OWNERSHIP NOW ENJOYED BY FOREIGNERS HOWEVER DESPITE THE RESTRICTIONS THE LEGENDARY CUBAN ENTREPRENEURIAL SPIRIT HAS KICKED IN AND SPREAD LIKE WILDFIRE ACCORDING TO HARVARD BASED CUBAN EXPERT JORGE DOMINGUEZ BY THE END OF THE YEAR ENTREPRENEURS WERE REGISTERING NEW BUSINESSES AT THE ASTOUNDING RATE OF EIGHT HUNDRED A DAY AND THAT COUNT MERELY RECORDS THOSE WHO BOTHERED TO REGISTER PERHAPS NOTHING BETTER SHOWS THE POWER OF CUBA'S ENTREPRENEURS THAN THE VEHEMENCE WITH WHICH COMMUNIST HARDLINERS ARE FIGHTING AGAINST THEM LAST WEEK COMMUNIST LEGISLATORS SUCCEEDED IN OUTLAWING SEVERAL ENTERPRISES RECENTLY LEGALIZED IN THE PAST WHEN CASTRO FELT THAT MARKET FORCES WERE GETTING QUOTE OUT OF CONTROL QUOTE HE RELIED ON THE UNSWERVING SUPPORT OF HIS INTERNAL SECURITY APPARATUS TO CLOSE DOWN ENTERPRISES SOVIET FUNDS WERE ALSO AVAILABLE TO BLUNT THE EFFECTS BUT SUPPORT FROM THE MILITARY FOR SUCH A CRACKDOWN IS NO LONGER A GIVEN AND OF COURSE THERE IS NO LONGER ANY SOVIET CASH TO MAKE UP FOR LOST MARKETS THIS TIME IT'S UNLIKELY THAT CASTRO CAN PREVENT THE SPREAD OF THE MARKET FORCES THAT HAVE BEEN UNLEASHED IN LIGHT OF ALL THESE CHANGES JOURNAL EDITORIALISTS BEGAN TO FEEL THAT IF INDIVIDUAL CUBANS HAD THE OPPORTUNITY TO RECEIVE FINANCING FROM ABROAD AND TO TRADE WITH THE U. S. A CRITICAL MASS MIGHT DEVELOP THAT WOULD HASTEN THE TRANSITION TO A MORE OPEN ECONOMIC AND POLITICAL SYSTEM UNDER CURRENT CONDITIONS IT BEGAN TO LOOK LIKE THE ECONOMIC EMBARGO HAD OUTLIVED ITS USEFULNESS I MADE MY FEELINGS ABOUT THE EMBARGO KNOWN TO CUBAN REPRESENTATIVES IN THE U. S. AND THEY APPEARED TO BE ENTHUSIASTIC ABOUT MY VISIT UNTIL I SPOKE AT THE COUNCIL ON FOREIGN RELATIONS A CUBAN REPRESENTATIVE TO THE UNITED NATIONS WAS AT THE COUNCIL MEETING AND DUTIFULLY REPORTED MY REMARKS BACK TO HAVANA WHEREUPON MY VISA WAS REVOKED WHILE I NOTED IN MY TALK THE DESPERATE ECONOMIC CIRCUMSTANCES ON THE ISLAND I SAID NOTHING NOT ALREADY WRITTEN IN DETAIL ON MY VISA APPLICATIONS SINCE THE MEETING WAS SUPPOSED TO BE OFF THE RECORD COUNCIL REPRESENTATIVES THREATENED TO BAR CUBANS FROM FUTURE MEETINGS IF MY VISA WAS NOT RE ISSUED BUT DESPITE THE RISK OF LOSING THE INFORMAL CONTACTS MADE AT THE COUNCIL WITH U. S. DIPLOMATS AND BUSINESS INTERESTS THE CUBANS WERE UNMOVED MORE RECENTLY SEVERAL OTHER JOURNALISTS AND SCHOLARS WHO FAVORED A NEW LOOK AT THE ECONOMIC EMBARGO HAD THEIR VISA REQUESTS EITHER DENIED OR REVOKED IF FIDEL REALLY OPPOSES THE EMBARGO WHY IS HE NOW PREVENTING THE VISITS OF THOSE WHO FAVOR LIFTING IT PARTICULARLY OF THOSE WHO FORMERLY SUPPORTED IT COULD IT BE BECAUSE THE EMBARGO REMAINS THE ONLY EXCUSE HE HAS TO DEFLECT ATTENTION FROM HIS GOVERNMENT'S FAILURE TO END THE ECONOMIC CRISIS WHILE ENDING THE ECONOMIC EMBARGO OF CUBA MAY INDEED ACCELERATE THE MOMENT OF RECKONING FOR THE CUBAN LEADERSHIP THERE ARE MEASURES SHORT OF SUCH A DRAMATIC UNILATERAL ACTION THAT THE CLINTON ADMINISTRATION COULD TAKE TO AFFECT CHANGE IN CUBA PRESIDENT CLINTON SHOULD THROW DOWN THE GAUNTLET AND OFFER TO LIFT THE EMBARGO WITH JUST ONE ECONOMIC CONDITION GRANT THE CUBAN PEOPLE THE SAME ECONOMIC RIGHTS THE CUBAN GOVERNMENT NOW AFFORDS FOREIGNERS NAMELY THE RIGHT TO PRIVATE PROPERTY AND THE PROPER EXECUTION OF CONTRACT RIGHTS AND REASONABLE RETURNS ON INVESTMENT THEN INDIVIDUAL CUBANS COULD TRADE DIRECTLY WITH THE U. S. WITH A MINIMUM OF INTERFERENCE OR CONTACT WITH THE CUBAN GOVERNMENT AS FOR POLITICAL RECOGNITION AND THE OPENING OF INTERNATIONAL PIGGY BANKS FOR DEVELOPMENT LET SUCH POLITICAL REWARDS ACCRUE ONLY AS THE POLITICAL REALITIES CHANGE ON THE ISLAND PERHAPS IN PREPARATION FOR JUST SUCH A CHALLENGE THE CUBAN FOREIGN MINISTER RECENTLY SAID THAT THE GOVERNMENT WILL ACCEPT ONLY UNCONDITIONAL WITHDRAWAL OF THE EMBARGO BUT FOR HOW LONG COULD THE CUBAN LEADERSHIP INSIST THAT GRANTING CUBANS THE SAME RIGHTS ENJOYED BY FOREIGNERS WAS MORE EVIL THAN THE SUFFERING CAUSED BY A SUFFOCATING ECONOMIC EMBARGO MR. ASMAN EDITS THE AMERICAS COLUMN INVESTORS WHO BOUGHT LIMITED PARTNERSHIPS MORE THAN SIX YEARS AGO CAN STILL PURSUE A PRIVATE ARBITRATION CLAIM AGAINST PRUDENTIAL SECURITIES INCORPORATED A STATE JUDGE RULED IN A TERSE RULING MASSACHUSETTS SUPERIOR COURT JUDGE REGINA QUINLAN DENIED PRUDENTIAL'S BID TO BAR THE INVESTORS FROM FILING AN ARBITRATION CLAIM AGAINST THE FIRM PRUDENTIAL HAD ARGUED THAT THE CASE SHOULD BE THROWN OUT BECAUSE THE INVESTORS HAD FILED THE CLAIM MORE THAN SIX YEARS AFTER BUYING THE PARTNERSHIPS IN VIOLATION OF ARBITRATION RULES THE DECISION HAS BROAD SIGNIFICANCE FOR INVESTORS OF THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT CURRENTLY PRUDENTIAL IS MAILING OUT CLAIM FORMS TO THREE HUNDRED FORTY THOUSAND INVESTORS WHO MUST DECIDE WHETHER TO TAP INTO A THREE HUNDRED THIRTY MILLION DOLLAR RESTITUTION FUND SET UP BY THE FIRM AS PART OF AN OCTOBER SETTLEMENT WITH REGULATORS OR FILE PRIVATE LEGAL CLAIMS AGAINST THE FIRM MANY INVESTORS BELIEVE THAT IF THEY BOUGHT PARTNERSHIPS MORE THAN SIX YEARS AGO THEIR ONLY SHOT AT RECOVERING MONEY WAS THROUGH THE RESTITUTION FUND THAT'S BECAUSE THE REGULATORY SETTLEMENT ISN'T GOVERNED BY THE STATUTE OF LIMITATIONS THAT NOW APPARENTLY BARS MANY INVESTORS FROM PURSUING OLDER LEGAL CLAIMS UNDER THE REGULATORY ACCORD HOWEVER INVESTORS CAN RECOVER ONLY COMPENSATORY DAMAGES THAT COVER LOSSES NOT PUNITIVE DAMAGES OR ATTORNEYS' FEES THE MASSACHUSETTS CASE DOESN'T HAVE BROAD PRECEDENTIAL VALUE SECURITIES LAWYERS SAY AND IT'S BY NO MEANS THE FIRST RULING OF ITS KIND BUT THE DECISION SHOWS THAT INVESTORS AREN'T NECESSARILY LOCKED INTO THE REPARATIONS FUND TO PURSUE OLDER CLAIMS AGAINST PRUDENTIAL PARTICULARLY IF THEY CAN PROVE THERE WAS NO WAY THEY COULD HAVE DISCOVERED ALLEGED FRAUD UNTIL LONG AFTER THEY BOUGHT THE PARTNERSHIPS LAWYERS SAY PRUDENTIAL WON'T APPEAL THE RULING WHICH NOW GOES TO AN ARBITRATION PANEL QUOTE THIS RULING DOESN'T PREVENT US FROM ARGUING THE TIME LIMIT IN ARBITRATION QUOTE SAID JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATE RISK MANAGEMENT THE ARBITRATION PANEL WILL MAKE ITS OWN DECISION A PRUDENTIAL SECURITIES SPOKESMAN ADDED THIS ISN'T EARTH SHATTERING IT HAS HAPPENED BEFORE OVER THE YEARS IN THE MASSACHUSETTS CASE FILED LAST YEAR TWO INVESTORS ACCUSED PRUDENTIAL AND A BROKER OF FRAUD AND UNAUTHORIZED TRADING AMONG OTHER THINGS IN SIX PARTNERSHIPS ALL BOUGHT BETWEEN NINETEEN EIGHTY FIVE AND NINETEEN EIGHTY SEVEN BUT PRUDENTIAL TRIED TO BLOCK THE CASE FROM PROCEEDING TO ARBITRATION BEFORE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS CITING THE SIX YEAR TIME LIMIT FOR FILING CLAIMS PRUDENTIAL CITED AN N. A. S. D. RULE THAT SAYS IN PART THAT NO DISPUTE CLAIM OR CONTROVERSY SHALL BE ELIGIBLE FOR SUBMISSION TO ARBITRATION UNDER THIS CODE WHERE SIX YEARS HAVE ELAPSED FROM THE OCCURRENCE OR EVENT GIVING RISE TO THE ACT OR DISPUTE CLAIM OR CONTROVERSY BUT THE PLAINTIFFS' LAWYERS ARGUED THAT THE CASE WAS FILED ONLY AFTER THE INVESTORS DISCOVERED PROBLEMS WITH THE PARTNERSHIPS THE CLAIMS CLEARLY DIDN'T ARISE WHEN THE INVESTMENTS WERE MADE BUT RATHER WHEN THE INVESTMENTS LOST THEIR VALUE AND THE DEFENDANTS FAILED TO ADVISE THEM THE INVESTORS OF SUCH A LOSS ACCORDING TO PAPERS FILED BY MICHAEL SOBOL AND HARRY MILLER OF SHAFNER AND GILLERAN A BOSTON LAW FIRM MANY PRUDENTIAL PARTNERSHIP INVESTORS DIDN'T REALIZE THEIR INVESTMENTS HAD SOURED FOR SEVERAL YEARS THAT'S BECAUSE PRUDENTIAL ALONG WITH MANY OTHER WALL STREET BROKERAGE FIRMS FOR MANY YEARS LISTED INVESTORS' PARTNERSHIP INVESTMENTS AT COST ON MONTHLY BROKERAGE ACCOUNT STATEMENTS IN DECEMBER NINETEEN NINETY ONE PRUDENTIAL ADDED A DISCLAIMER THAT THE PARTNERSHIP AMOUNTS ON THE STATEMENTS WERE QUOTE FACE VALUE QUOTE ONLY BUT IT STILL DIDN'T DISCLOSE WHAT IN MANY CASES WERE SIGNIFICANT LOSSES THE PROBLEM WAS FURTHER COMPLICATED BECAUSE MANY PARTNERSHIPS WERE HIGHLY ILLIQUID THAT IS THEY COULDN'T EASILY BE RESOLD IN THE SECONDARY MARKETPLACE AS RECENTLY AS JUNE NINETEEN NINETY THREE THE INVESTORS RECEIVED MONTHLY ACCOUNT STATEMENTS WHICH CARRIED THE LIMITED PARTNERSHIPS AT THEIR COST SLASH BASIS ACCORDING TO PAPERS FILED IN THE CASE THIS METHOD OF ACCOUNTING FRAUDULENTLY CONCEALED THE ACTUAL VALUE OF THE LIMITED PARTNERSHIPS INVESTORS WHOSE ACCOUNT STATEMENTS DIDN'T PROPERLY SHOW THE DROP IN PARTNERSHIP VALUES STAND A BETTER CHANCE OF PROVING THAT THEY WEREN'T AWARE OF FRAUD UNTIL LONG AFTER THEY BOUGHT THE INVESTMENT SECURITIES LAWYERS SAY CERTAINLY IF YOU PAID TEN THOUSAND DOLLARS AND PICKED UP YOUR STATEMENT EVERY MONTH AND IT SHOWED TEN THOUSAND DOLLAR VALUE THAT COULD HAVE HAD THE EFFECT OF GIVING YOU COMFORT THAT THINGS WERE STILL O. K. SAYS SAM SCOTT MILLER A NEW YORK SECURITIES LAWYER AND FORMER GENERAL COUNSEL FOR PAINEWEBBER GROUP INCORPORATED THIS WEEK THE GOVERNORS OF OUR TWO LARGEST STATES FOCUSED ON CRIMINAL CONTROL IN THEIR ANNUAL STATE MESSAGES PETE WILSON OF CALIFORNIA AND MARIO CUOMO OF NEW YORK BOTH ENDORSED A VERSION OF WASHINGTON STATE'S QUOTE THREE STRIKES YOU'RE OUT QUOTE LAW GOVERNOR CUOMO SAID IT'S TIME FELONS WERE TAUGHT A SIMPLE LESSON THREE VIOLENT CRIMES AND YOU'RE IN FOR LIFE WITHOUT PAROLE WHEN AN IDEA IS ENDORSED ON THE SAME DAY BY TWO GOVERNORS OF MEGA STATES ONE DEMOCRAT AND ONE REPUBLICAN IT'S SAFE TO CONCLUDE THE IDEA HAS NOW MOVED TO THE CENTER OF THE NATION'S POLITICAL RADAR SCREEN THE GOOD GUYS ALWAYS WIN IN THE END THAT'S THE BETTING OF SOME MUTUAL FUND ANALYSTS WHO ARE RECOMMENDING FUNDS THAT SPECIALIZE IN THE HIGH QUALITY QUOTE GROWTH STOCKS QUOTE THAT HAVE BECOME SO DESPISED IN THE PAST TWO YEARS HIGHLY REGARDED FUNDS SUCH AS DREYFUS APPRECIATION FUND PASADENA GROWTH FUND AND VANGUARD U. S. GROWTH PORTFOLIO EITHER SUFFERED SMALL LOSSES OR POSTED ONLY MINUSCULE GAINS LAST YEAR MEANWHILE MOST STOCK FUNDS ROARED AHEAD CLIMBING AN AVERAGE OF TWELVE POINT FIVE PERCENT IN NINETEEN NINETY THREE FOR MANY GROWTH STOCK FUNDS IT WAS THE SECOND CONSECUTIVE YEAR OF POOR PERFORMANCE YOU'VE HAD THE PENDULUM SWING FROM NINETEEN NINETY ONE WHEN THE MARKET BELIEVED THAT THESE QUALITY BRANDED GOODS GROWTH COMPANIES HAD INFINITE PRICING POWER TO THE POINT NOW WHERE THE MARKET THINKS THESE COMPANIES HAVE NO PRICING POWER AT ALL SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER IT'S ONE OF THE FEW AREAS OF THE MARKET THAT IS REALLY OUT OF FAVOR MUTUAL FUND ANALYSTS OFTEN DIVIDE U. S. STOCK FUNDS INTO FOUR CAMPS LARGE COMPANY GROWTH FUNDS LARGE COMPANY VALUE FUNDS SMALL COMPANY GROWTH FUNDS AND SMALL COMPANY VALUE FUNDS GROWTH FUNDS BUY COMPANIES THAT HOLD THE PROMISE OF RAPID FUTURE EARNINGS GROWTH VALUE PLAYERS FAVOR STOCKS THAT ARE CHEAP COMPARED WITH CORPORATE ASSETS OR CURRENT EARNINGS SOME ANALYSTS THINK THAT LARGE COMPANY GROWTH FUNDS NOW ARE AMONG THE MOST ATTRACTIVE SECTORS OF THE STOCK FUND UNIVERSE DESPITE THE RIP ROARING BULL MARKET OF THE PAST FEW YEARS THESE FUNDS HAVE TAKEN IT ON THE CHIN AS TOBACCO FOOD AND DRUG STOCKS HAVE FALLEN FROM FAVOR OVER THE PAST YEAR AND A HALF IT'S BEEN ONE OF THE MOST BEATEN UP SECTORS OF THE MARKET SAYS KENNETH GREGORY EDITOR OF THE NO LOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER OVER THE NEXT TWO OR THREE YEARS IT MAY BE ONE OF THE BEST STYLES TO PLAY MR. GREGORY IS ADVISING HIS SUBSCRIBERS TO BUY THE VANGUARD U. S. GROWTH PORTFOLIO A NO LOAD NO COMMISSION MUTUAL FUND WITH A THREE THOUSAND DOLLAR MINIMUM THAT'S RUN BY CHICAGO'S LINCOLN CAPITAL MANAGEMENT WHILE EARNINGS GROWTH HAS SLOWED IN THE GROWTH STOCK GROUP YOU'RE STILL GETTING BETTER THAN AVERAGE GROWTH HE NOTES QUOTE IF THE EARNINGS CONTINUE TO COME THROUGH THE PRICE SLASH EARNINGS MULTIPLES WILL KEEP GETTING BETTER AND BETTER QUOTE AND THAT SHOULD EVENTUALLY CATCH INVESTORS' ATTENTION THE SELL OFF IN COMPANIES SUCH AS MERCK AND COMPANY PFIZER INCORPORATED AND PHILIP MORRIS COMPANIES HAS PUT LARGE DENTS IN THE PERFORMANCES OF SOME WIDELY ADMIRED MUTUAL FUND MANAGERS AMONG THOSE WHO HAVE BEEN HIT HARD ARE FAYEZ SAROFIM A PRIVATE MONEY MANAGER WHO HAS RUN THE DREYFUS APPRECIATION FUND SINCE OCTOBER NINETEEN NINETY AND ROGER ENGEMANN MANAGER OF THE PASADENA GROWTH FUND AND THE PASADENA NIFTY FIFTY FUND THE DREYFUS AND PASADENA FUNDS DEMAND A TWO THOUSAND FIVE HUNDRED DOLLAR MINIMUM INVESTMENT THE DREYFUS FUND CAN BE BOUGHT WITHOUT PAYING A LOAD BOTH PASADENA FUNDS CHARGE A FIVE POINT FIVE PERCENT SALES COMMISSION LARGE COMPANY GROWTH STOCKS HAVE BEEN SO BATTERED THAT THE SHARES HAVE EVEN ATTRACTED SOME VALUE INVESTORS INCLUDING CLIPPER FUND'S JAMES GIPSON AND YACKTMAN FUND'S DONALD YACKTMAN DESPITE A LARGE STAKE IN TOBACCO AND DRUG STOCKS CLIPPER FUND GAINED ELEVEN POINT THREE PERCENT LAST YEAR YACKTMAN FUND WASN'T NEARLY SO LUCKY TUMBLING SIX POINT SIX PERCENT OVER THE PAST TWELVE MONTHS MORNINGSTAR CALCULATES THE YACKTMAN FUND HAS MORE THAN THIRTY TWO PERCENT OF ITS STOCK MARKET MONEY IN HEALTH CARE COMPANIES AND ALMOST TWENTY SEVEN PERCENT IN CONSUMER STAPLES WHICH INCLUDES FOOD AND TOBACCO STOCKS I'M INTERESTED IN THE LOW PRICE SLASH EARNINGS PART AND YACKTMAN FUND FITS THAT TO A T. SAYS LEWIS ALTFEST PRESIDENT OF L. J. ALTFEST AND COMPANY A NEW YORK INVESTMENT ADVISER I THINK THE NEXT YEAR IS GOING TO BE A GOOD YEAR FOR YACKTMAN YACKTMAN IS THE PUREST PLAY ON WHAT'S DONE POORLY GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER IS INTRIGUED BY BOTH THE YACKTMAN FUND AND THE VANGUARD INDEX TRUST GROWTH PORTFOLIO AN INDEX FUND THAT OWNS THE GROWTH STOCKS IN THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX VANGUARD INDEX TRUST GROWTH PORTFOLIO EKED OUT A GAIN OF ONE POINT FIVE PERCENT LAST YEAR WHILE THE VANGUARD INDEX TRUST VALUE PORTFOLIO WHICH OWNS THE VALUE STOCKS IN THE S. AND P. FIVE HUNDRED SOARED EIGHTEEN POINT THREE PERCENT WE'RE WATCHING THE GROWTH STOCK SECTOR VERY VERY CLOSELY SAYS MR. PERRITT I THINK IT'S A LITTLE TOO EARLY I SUSPECT THAT SOMETIME THIS YEAR PROBABLY IN THE FIRST HALF THERE WILL BE A NEGATIVE SURPRISE WHICH WILL SET OFF A CORRECTION AND THAT'S WHEN I JUMP IN WITH BOTH FEET QUOTE NOT EVERYBODY IS BULLISH ON LARGE COMPANY GROWTH STOCKS YOU'RE STILL BUYING INTO A PRICEY MARKET SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN AND SCARBOROUGH AND IF THE MARKET GOES DOWN THOSE FUNDS WILL PROBABLY STILL GO DOWN MORE THAN THE VALUE FUNDS MORNINGSTAR'S MR. PHILLIPS WHO OWNS BOTH THE PASADENA NIFTY FIFTY FUND AND THE YACKTMAN FUND CONCEDES THAT THE LARGE COMPANY GROWTH FUNDS WILL TAKE A TUMBLE IF THE BROAD MARKET FALLS BUT HE THINKS THAT BECAUSE THE STOCKS ARE DOWN A LOT ALREADY THAT COULD PROVIDE A CUSHION IF THERE'S A MARKETWIDE SELL OFF A MAJOR INSURER IS SET TO OFFER PATENT INFRINGEMENT INSURANCE A MOVE THAT REFLECTS THE GROWING IMPORTANCE OF PATENT PROTECTION IN HIGH TECHNOLOGY INDUSTRIES AMERICAN INTERNATIONAL GROUP INCORPORATED'S POLICY WILL COVER UP TO FIVE MILLION DOLLARS A YEAR FOR LIABILITY AND LEGAL EXPENSES INCURRED BY DEFENDANTS IN PATENT CASES THE POLICY IS DESIGNED PRIMARILY FOR LARGE COMPANIES ACCUSED OF ILLEGALLY MARKETING PATENTED PRODUCTS OR USING PATENTED TECHNOLOGY A. I. G.'S MOVE COMES IN RESPONSE TO THE GROWING TENDENCY OF SUCH DISPUTES TO LAND IN THE COURTS AS PATENT OWNERS SEEK LEGAL PROTECTION FOR THEIR EXCLUSIVE SALES RIGHTS IN NINETEEN NINETY TWO ONE THOUSAND FOUR HUNDRED SEVENTY FOUR PATENT CASES WERE FILED IN FEDERAL COURTS NEARLY A SEVENTY FIVE PERCENT INCREASE OVER A DECADE EARLIER ACCORDING TO THE ADMINISTRATIVE OFFICE OF THE U. S. COURTS THE RISE IN LITIGATION HAS BEEN FUELED BY THE ENORMOUS VALUE OF PATENTED INVENTIONS IN HIGH TECHNOLOGY INDUSTRIES AND BY THE LURE OF BIG JURY AWARDS IN SOME RECENT CASES DECLINING SALES IN SOME RECESSION PLAGUED INDUSTRIES HAVE ALSO PLAYED A ROLE MAKING COMPANIES THAT HOLD PATENTS MORE ZEALOUS ABOUT TRYING TO KEEP INFRINGERS AWAY FROM THEIR TURF BECAUSE PATENT SUITS TYPICALLY REVOLVE AROUND COMPLICATED TECHNOLOGY THEY ARE AMONG THE MOST CUMBERSOME AND EXPENSIVE CASES IN THE LEGAL SYSTEM AND SOME PATENT SPECIALISTS WORRY THAT THE AVAILABILITY OF INSURANCE WILL BOG THE COURTS DOWN WITH EVEN MORE COMPLEX LITIGATION QUOTE THE MORE BROADLY YOU'RE INSURED AGAINST THIS SORT OF THING THE MORE YOU LOOK LIKE A SUITABLE TARGET BY SOMEBODY WHO HAS A PATENT QUOTE SAYS KENNETH MADSEN A PATENT LAWYER AT THE NEW YORK LAW FIRM KENYON AND KENYON IT'S A STEP IN THE DIRECTION OF PERSONAL INJURY LITIGATION MR. MADSEN ADDS WHICH WOULD BE GREATLY DIMINISHED WERE IT NOT FOR THE INSURANCE COVERAGE PATENT OWNERS THEMSELVES ALREADY HAVE ACCESS TO INSURANCE THAT COVERS THEIR EXPENSES AS PLAINTIFFS INTELLECTUAL PROPERTY INSURANCE SERVICES CORPORATION LOUISVILLE KENTUCKY FOR EXAMPLE OFFERS SMALL COMPANIES POLICIES THAT WILL PAY UP TO FIVE HUNDRED THOUSAND DOLLARS TO ENFORCE PATENTS THEY BELIEVE ARE BEING INFRINGED ALSO A NUMBER OF INVESTMENT POOLS AND LIMITED PARTNERSHIPS RECENTLY HAVE EMERGED TO HELP FUND SMALL INVENTORS' LAWSUITS IN RETURN FOR A CUT OF ANY JUDGMENT OR SETTLEMENT ROBERT FLETCHER PRESIDENT OF INTELLECTUAL PROPERTY INSURANCE SERVICES ACKNOWLEDGES THAT FINANCING PATENT LAWSUITS MAY ENCOURAGE MORE LITIGATION HOWEVER HE SAYS MANY OF THOSE SUITS ARE NECESSARY TO ENFORCE THE RIGHTS OF LITTLE GUYS WHO AREN'T BEING TREATED FAIRLY BY THE PATENT SYSTEM IN THE PAST MANY DEFENDANTS IN PATENT CASES HAVE TRIED TO OBTAIN INSURANCE COVERAGE THROUGH THEIR SO CALLED COMPREHENSIVE GENERAL LIABILITY POLICIES BUT INSURERS INCLUDING A. I. G. HAVE BALKED AT THOSE EFFORTS INSISTING THAT THE COMPREHENSIVE POLICIES WEREN'T DESIGNED FOR PATENT DISPUTES LAST SEPTEMBER A CALIFORNIA APPEALS COURT AGREED WITH THE INSURERS RULING THAT AN AETNA CASUALTY AND SURETY COMPANY COMPREHENSIVE POLICY DOESN'T COVER PATENT CASES ONE REASON A. I. G. AND OTHER INSURERS HAVE AVOIDED PATENT INFRINGEMENT INSURANCE UNTIL NOW IS THE DIFFICULTY IN ASSESSING THE EXTENT OF A COMPANY'S VULNERABILITY PARTICULARLY WITH HIGH TECH PRODUCTS IT IS OFTEN UNCLEAR EXACTLY WHAT A PARTICULAR PATENT COVERS OR HOW SIMILAR ONE INVENTION IS TO ANOTHER AS A RESULT EVEN COMPANIES THAT APPEAR TO BE ACTING WITHIN THEIR RIGHTS OFTEN FIND THEMSELVES TARGETS OF INFRINGEMENT SUITS IN ADDITION UNLIKE PERSONAL INJURY CASES IN WHICH ONE SIDE OFTEN CONCEDES LIABILITY BUT FIGHTS OVER THE AMOUNT OF DAMAGES PATENT CASES USUALLY INVOLVE CONTESTS OVER BOTH LIABILITY AND DAMAGES IN A PATENT CASE YOU HAVE TWO BIG UNKNOWNS INSTEAD OF ONE BIG UNKNOWN SAYS MR. MADSEN THE PATENT LAWYER BY INSURING SUCH CASES YOU'RE BUYING A VERY HIGH RISK SOME INSURERS HAVEN'T OFFERED PATENT LIABILITY POLICIES BECAUSE OF THE FEAR THAT SOME COMPANIES MIGHT INTENTIONALLY INFRINGE PATENTS KNOWING THAT THE INSURER WOULD PICK UP THE TAB OF ANY LITIGATION IT'S LIKE INSURING MURDER SAYS SEAN MOONEY AN ECONOMIST AT THE INSURANCE INFORMATION INSTITUTE A TRADE ASSOCIATION PROTECTING PEOPLE FROM LIABILITY OFTEN QUOTE ENCOURAGES THAT KIND OF BEHAVIOR QUOTE A. I. G. WILL ATTEMPT TO CONTROL ITS RISK ON THE NEW POLICIES BY REQUIRING HIGHER DEDUCTIBLES AND CHARGING HIGHER PREMIUMS FOR COMPANIES THAT HAVE A HISTORY OF LITIGATION OR THAT HAVEN'T CLOSELY SCRUTINIZED THEIR OWN VULNERABILITY TO LAWSUITS ANNUAL PREMIUMS FOR FIVE MILLION DOLLARS OF COVERAGE ARE EXPECTED TO AVERAGE BETWEEN ONE HUNDRED FIFTY THOUSAND DOLLARS AND TWO HUNDRED THOUSAND DOLLARS A YEAR AN A. I. G. SPOKESMAN SAID THE POLICY DOESN'T COVER PUNITIVE DAMAGES WHICH COULD BE AWARDED IN CASES WHERE A COMPANY INTENTIONALLY INFRINGES A PATENT MILBANK TWEED HADLEY AND MCCLOY LOST THE APPEAL OF A TWO MILLION DOLLAR JURY VERDICT AGAINST IT STEMMING FROM AN ALLEGED CONFLICT OF INTEREST IN A RULING BY THE SECOND U. S. CIRCUIT COURT OF APPEALS MILBANK WAS FOUND TO HAVE COMMITTED A SERIOUS BREACH OF ITS FIDUCIARY DUTY WHEN WITHOUT ITS CLIENT'S CONSENT IT REPRESENTED THE CLIENT'S AGENT IN A DEAL THAT WAS ALLEGEDLY AGAINST THE CLIENT'S INTERESTS THE DECISION INVOLVED FORMER CLIENT CAROL SUI HAN LEO THE DAUGHTER OF MALAYSIAN INVESTOR T. K. WEN MRS. LEO RETAINED THE BIG NEW YORK LAW FIRM IN NINETEEN EIGHTY FIVE TO REPRESENT HER IN THE TWO STEP PURCHASE OF CERTAIN ASSETS OF THE BANKRUPT DEAK AND COMPANY THE NATURE AND EXTENT OF THE ATTORNEY CLIENT RELATIONSHIP WAS CLOSELY CONTESTED BY MILBANK AT TRIAL WHEN MRS. LEO HESITATED TO COMPLETE THE SECOND STAGE OF THE FIFTY TWO MILLION DOLLAR DEAL HER AGENT SINGAPORE ATTORNEY CHAN CHER BOON EXPRESSED INTEREST AFTER STATING IN WRITING THAT IT WOULDN'T COUNSEL HIM IN ANY RELATED MATTER WITHOUT MRS. LEO'S PERMISSION MILBANK PROCEEDED TO REPRESENT MR. CHAN IN A SUCCESSFUL BID FOR THE REMAINING ASSETS ACCORDING TO THE COURT'S OPINION MILBANK ARGUED THAT MRS. LEO WAS NOT HARMED BY ITS SUBSEQUENT REPRESENTATION OF MR. CHAN BECAUSE SHE COULD NOT SHOW THAT THE FIRM'S CONDUCT CAUSED HER TO LOSE ASSETS FOR WHICH SHE NEVER BID BUT THE THREE COURT PANEL REJECTED THE ARGUMENT SHE WAS PREVENTED FROM OBTAINING THE SECOND STAGE ASSETS BY HER FORMER AGENT ASSISTED BY HER FORMER ATTORNEY THE COURT WROTE ANDREW S. O'CONNOR AN ATTORNEY WITH THE NEW YORK FIRM LIDDLE O'CONNOR FINKELSTEIN AND ROBINSON WHICH REPRESENTED MILBANK SAID THE LAW FIRM HAD NOT DECIDED WHETHER TO PURSUE AN APPEAL MILBANK TWEED VERSUS CHAN CHER BOON NUMBER NINETY THREE TO SEVEN THOUSAND FOUR HUNDRED EIGHTEEN A NEW YORK LAWYER WAS ARRAIGNED IN FEDERAL COURT IN MANHATTAN FOR HIS ALLEGED PARTICIPATION IN TWO SEPARATE INSIDER TRADING RINGS ONE INVOLVING ILLEGAL TRADES IN THE SHARES OF NORTON COMPANY AND THE OTHER INVOLVING THE SHARES OF MOTEL SIX L. P. THE ARRAIGNMENT MARKS THE FIRST TIME PROSECUTORS HAVE CHARGED ANY INDIVIDUAL WITH PARTICIPATION IN BOTH RINGS THE U. S. ATTORNEY'S OFFICE IN MANHATTAN CHARGED JOSEPH GREENWALD WITH CONSPIRACY IN RELATION TO TRADES IN THE SHARES OF BOTH COMPANIES' STOCK IN NINETEEN NINETY BEFORE THE PUBLIC ANNOUNCEMENT THAT THEY WERE TARGETS OF TENDER OFFERS MR. GREENWALD OPERATES GREENWALD SECURITIES TRADING INCORPORATED FROM OFFICES IN LOWER MANHATTAN WHERE MICHAEL BORLINGHAUS A GERMAN INVESTOR WHO PLEADED GUILTY TO CHARGES STEMMING FROM THE NORTON INVESTIGATION ALSO LEASED SPACE MR. GREENWALD THIRTY THREE YEARS OLD WAS ALSO A FRIEND AND COLLEGE CLASSMATE OF JOHN ANDERSON A CALIFORNIA TANNING SALON OWNER WHO PLEADED GUILTY TO CONSPIRACY IN THE MOTEL SIX CASE AND FROM WHOM PROSECUTORS CONTEND MR. GREENWALD RECEIVED CERTAIN INSIDE INFORMATION BOTH MR. BORLINGHAUS AND MR. ANDERSON AWAIT SENTENCING TO DATE ELEVEN INDIVIDUALS HAVE BEEN CRIMINALLY CHARGED IN ONE OR ANOTHER OF THE TWO CASES ACCORDING TO ASSISTANT U. S. ATTORNEY DAVID MEISTER WHO SAID INVESTIGATIONS INTO BOTH MATTERS CONTINUE NOTED JAY B. STEPHENS FORMER U. S. ATTORNEY IN WASHINGTON D. C. IS JOINING THE WASHINGTON OFFICE OF PILLSBURY MADISON AND SUTRO MR. STEPHENS FREQUENTLY MENTIONED AS A POSSIBLE REPUBLICAN CANDIDATE FOR THE U. S. SENATE IN VIRGINIA SAID HE IS WITHDRAWING FROM CONSIDERATION IN THE RACE AND WILL BE AN ACTIVE LITIGATION PARTNER AT THE TIME HE WAS REMOVED AS U. S. ATTORNEY BY THE NEW ADMINISTRATION LAST APRIL MR. STEPHENS WAS OVERSEEING AN INVESTIGATION OF THE HOUSE POST OFFICE AND ITS DEALINGS WITH WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D. ILLINOIS THE PROBE IS CONTINUING MR. ROSTENKOWSKI HAS NOT BEEN CHARGED WITH ANY WRONGDOING MARGARET A. JACOBS CONTRIBUTED TO THIS ARTICLE A DECEMBER TENTH WASHINGTON WIRE ITEM GIVES THE FALSE IMPRESSION ABOUT MY FRIEND PHIL LADER I. E. THAT HE IS NOT TOUGH ENOUGH TO BE DEPUTY CHIEF OF STAFF AT THE WHITE HOUSE HIS CRITICS ARE CONFUSING STYLE WITH SUBSTANCE WHEN PHIL RAN FOR GOVERNOR IN SOUTH CAROLINA IN NINETEEN EIGHTY SIX I WAS THE COORDINATOR OF HIS CAMPAIGN IN CHARLESTON HE EXPECTED ALL TASKS TO BE PERFORMED SWIFTLY AND COMPETENTLY MORE IMPORTANT HE INSPIRES THE PEOPLE WHO WORK FOR HIM TO PLAY AT THE TOP OF THEIR GAME IT WILL BECOME QUICKLY APPARENT TO ANYONE IN DOUBT THAT PRESIDENT CLINTON HAS CHOSEN WISELY CANADA'S FINANCIAL WIZARDS ARE CRAFTING WAYS FOR AFFLUENT INVESTORS TO KEEP TAXES AT BAY WHILE THEY HELP TO FINANCE THE SURGING SALES OF CANADIAN MUTUAL FUNDS AS MUCH AS EIGHTY PERCENT OF NEW FUND SALES IN CANADA ARE OF THE DEFERRED LOAD VARIETY WHERE THE INVESTOR DOESN'T PAY A SALES CHARGE UPFRONT BUT RATHER PAYS IT UPON LEAVING THE FUND THE LOAD DECLINES AS INVESTORS STAY IN THE FUND TYPICALLY REACHING ZERO AFTER ABOUT SIX YEARS THIS STRUCTURE HAS HELPED CANADIAN INDUSTRY ASSETS TO SOAR BUT IT IS A CASH DRAIN FOR FUND COMPANIES WHICH FIND THEMSELVES IN THE AWKWARD POSITION OF HAVING TO PAY SALES COMMISSIONS UPFRONT TO A FUND SELLING BROKER WHILE WAITING FOR MONTHS OR YEARS TO COLLECT A LOAD TO MEET THEIR CASH NEEDS MOST FUND COMPANIES PREVIOUSLY TURNED TO LIMITED PARTNERSHIPS OFFERING RETURNS OF AS MUCH AS TWENTY PERCENT ANNUALLY IN EXCHANGE FOR CAPITAL BUT TODAY THE CANADIAN GOVERNMENT IS CHIPPING AWAY AT THE TAX BREAKS AND INCENTIVES THAT HAVE MADE THEM ATTRACTIVE TO INVESTORS SO NOW CANADA'S INVESTMENT DEALERS ARE RUSHING TO THE RESCUE OF THE FUND COMPANIES OFFERING A VARIETY OF NEW WAYS TO PACKAGE INTO SECURITIES THE LOANS THAT FINANCE THE BROKERS' FUND SALES COMMISSIONS SCOTIAMCLEOD INCORPORATED A TORONTO INVESTMENT DEALER IS OFFERING TO ACQUIRE AND ROLL UP INTO ONE BIGGER ENTERPRISE TWELVE SMALL LIMITED PARTNERSHIPS VALUED AT A TOTAL OF ABOUT NINETY MILLION CANADIAN DOLLARS SIXTY EIGHT POINT TWO MILLION U. S. DOLLARS IN EXCHANGE INVESTORS WOULD RECEIVE SHARES IN A PUBLICLY TRADED LIMITED PARTNERSHIP MASTER MUTUAL LIMITED PARTNERSHIP WHICH UNDER NEW TAX RULES WOULD BE ELIGIBLE FOR INCLUSION IN RETIREMENT SAVINGS PLANS THUS SHELTERING THE HIGH YIELDING INVESTMENT FROM TAX HOLDERS OF THE ENTITIES SCOTIAMCLEOD IS SEEKING TO ACQUIRE ALREADY HAVE REAPED ALL OF THEIR UPFRONT TAX SAVINGS A FIFTY PERCENT WRITE OFF IN THE FIRST YEAR AND A TWENTY FIVE PERCENT DEDUCTION IN EACH OF THE NEXT TWO YEARS WITH THOSE TAX SAVINGS USED UP QUOTE INVESTORS FACE A PRETTY HEAVY TAX BURDEN QUOTE SAYS ROBERT WILLIAMS SENIOR VICE PRESIDENT AND DIRECTOR OF EQUITY CAPITAL MARKETS AT SCOTIAMCLEOD THIS WOULD GIVE THEM LIQUIDITY AND ALLOW THEM TO SHELTER THE INCOME STREAM STEVE KANGAS A MUTUAL FUND ANALYST AT MIDLAND WALWYN CAPITAL SAYS THE POOLING OF THE PARTNERSHIPS OFFERING INVESTORS LIQUIDITY AND FURTHER TAX BREAKS COULD HELP TO ENSURE THE FUTURE OF THE FINANCING VEHICLE EVEN IF AS EXPECTED THE CANADIAN GOVERNMENT REMOVES SOME OF THE UPFRONT TAX BREAKS FOR OTHER PARTNERSHIPS IT REMAINS TO BE SEEN WHETHER THE SCOTIAMCLEOD OFFER WILL SUCCEED IT ALREADY HAS BEEN AMENDED TO RESPOND TO CONCERNS OVER NEW MANAGEMENT FEES AND OTHER ISSUES THE BID EXPIRES JANUARY EIGHTEENTH THE MUTUAL FUND CONCERNS THAT FORMED THE LIMITED PARTNERSHIPS SCOTIAMCLEOD IS SEEKING TO ACQUIRE HAVE YET TO RECOMMEND EITHER ACCEPTANCE OR REJECTION AT LEAST ONE MAJOR FUND CONCERN MACKENZIE FINANCIAL CORPORATION OPTED INSTEAD TO FORGE AHEAD WITH ITS OWN SIMILAR PLAN WITH NEARLY EIGHT BILLION CANADIAN DOLLARS IN ASSETS UNDER MANAGEMENT THE COMPANY HAS ENOUGH OF ITS OWN LIMITED PARTNERSHIPS OUTSTANDING TO CONSOLIDATE THEM AND LIST THE NEW ENTITY ON THE TORONTO STOCK EXCHANGE EARLY THIS YEAR UNLIKE THE SCOTIAMCLEOD PROPOSAL MACKENZIE WON'T CHARGE INVESTORS A MANAGEMENT FEE IN THE MEANTIME ANOTHER CANADIAN INVESTMENT DEALER HAS COME UP WITH A SOLUTION IT HOPES WILL PROVIDE AN ALTERNATIVE TO THE LIMITED PARTNERSHIPS BURNS FRY LIMITED PLANS TO LAUNCH THIS MONTH A PLAN TO SECURITIZE THE FUTURE INCOME STREAM FROM A DEFERRED LOAD FUND AND MARKET A FIXED INCOME SECURITY TO INSTITUTIONAL INVESTORS THESE WOULD BE ATTRACTIVE INVESTMENTS SINCE UNLIKE CAR LOANS OR CREDIT CARD SECURITIZATIONS THE RISK OF DEFAULT IS ZERO SAYS KEN SCOTT AN ASSOCIATE AT BURNS FRY IN OTHER WORDS PEOPLE CAN'T PULL THEIR MONEY OUT OF A FUND WITHOUT PAYING THE REQUIRED FEES PRINCIPAL PAYMENTS ARE SPREAD OVER THE LIFE OF THE NOTES WITH THE TERM MATCHING THE PERIOD DURING WHICH INVESTORS HAVE TO PAY A LOAD UPON EXITING BY THE TIME SAY SIX YEARS HAVE PASSED AND NO LOAD IS BEING CHARGED TO INVESTORS WHO HAVE STAYED IN THE FUND THE NOTE WOULD HAVE BEEN PAID OFF IN FULL BECAUSE INSTITUTIONAL INVESTORS IN RETURN FOR A SECURE FIXED INCOME INVESTMENT WON'T SEEK THE SAME HIGH RETURNS AS INDIVIDUALS BUYING INTO THE LIMITED PARTNERSHIPS MR. SCOTT SAYS HE BELIEVES THIS WILL BE A CHEAPER OPTION FOR MUTUAL FUND COMPANIES THESE INITIATIVES ARE IMPORTANT BECAUSE FOR MOST COMPANIES THE COMMISSION COSTS CAN'T BE FINANCED THROUGH NORMAL BANK LOANS SAYS MR. KANGAS ONE OPTION THAT NO ONE SEEMS TO BE CONSIDERING IS ABANDONING THE TACTIC OF USING DEFERRED LOAD FUNDS EVEN EXECUTIVES AT TRIMARK FINANCIAL CORPORATION WHICH WAS FORCED TO GO PUBLIC MUCH EARLIER THAN PLANNED TO RAISE CAPITAL TO PAY COMMISSIONS SAY THEY EXPECT THESE FUNDS TO CONTINUE TO REPRESENT A SIGNIFICANT PART OF FUTURE SALES TO DATE TRIMARK IS THE ONLY LARGE FUND MANAGER THAT HASN'T TURNED TO LIMITED PARTNERSHIPS TO FINANCE COMMISSION COSTS ANALYSTS AGREE THE PROBLEM IS ONE THAT MAY SOON REAR ITS HEAD IN THE U. S. WHERE DEFERRED LOAD FUNDS ARE GAINING IN POPULARITY AS COMPETITION WITH NO LOAD FUNDS GROWS FUND COMPANIES ARE BEING PUSHED INTO LOWERING FEES OR OFFERING A DEFERRED LOAD PRODUCT ANALYSTS EXPECT THE DEFERRED LOAD FUNDS NOW THE FASTEST GROWING SEGMENT OF THE MARKET TO REPRESENT AS MUCH AS TWENTY PERCENT OF THE U. S. FUND INDUSTRY'S LONG TERM ASSETS UNDER MANAGEMENT BY YEAR END UP FROM ABOUT FIFTEEN PERCENT LAST YEAR STRONG CONSUMER BUYING JUST BEFORE AND AFTER CHRISTMAS HELPED THE NATION'S BIGGEST RETAIL CHAINS RING UP MODEST SALES GAINS FOR THE HOLIDAY PERIOD BUT THE RESULTS REPORTED YESTERDAY WERE ACHIEVED ONLY AFTER RETAILERS RESORTED TO STEEP DISCOUNTING ESPECIALLY IN THE WEAKER THAN USUAL APPAREL AREA ANALYSTS EXPECT THIS TO HURT FOURTH QUARTER PROFITS AT MANY STORES OVERALL SALES IN STORES OPEN AT LEAST A YEAR INCREASED FOUR POINT THREE PERCENT IN DECEMBER ACCORDING TO AN INDEX COMPILED BY SALOMON BROTHERS ANOTHER INDEX PREPARED BY MERRILL LYNCH AND COMPANY PUT THE SAME STORE SALES GAIN AT THREE POINT SIX PERCENT FOR THE MONTH BOTH FIGURES WERE IN LINE WITH WHAT ANALYSTS SAID THEY EXPECTED AT THE END OF THE HOLIDAY SEASON THE BUOYANT FINISH TO DECEMBER HAS RETAIL WATCHERS DISAGREEING ABOUT WHAT WILL HAPPEN IN THE FIRST MONTHS OF THIS YEAR SOME SAID CONSUMERS WILL CONTINUE THEIR AGGRESSIVE SPENDING OTHERS BELIEVE SHOPPERS WILL BEHAVE AS THEY DID LAST YEAR WHEN THE FIRST QUARTER SAW A BROAD CONSUMER PULLBACK RETAILERS' FORTUNES CONTINUED TO HINGE ON THE TYPE OF STORES THEY OPERATED DEPARTMENT STORES BUOYED BY CONSUMER INTEREST IN HOME FURNISHINGS REPORTED STRONGER SALES THAN ANALYSTS EXPECTED EVEN THOUGH APPAREL SALES WERE ANEMIC SPECIALTY APPAREL CHAINS HAD A WEAK SHOWING UNDERPERFORMING ANALYSTS' MODEST EXPECTATIONS DISCOUNT STORES HAD MODERATE GAINS MEETING ANALYSTS' EXPECTATIONS BUT WAREHOUSE CLUBS DID POORLY FAILING TO MEET EXPECTATIONS WITH THE EXCEPTION OF TOY SALES THE HOLIDAY PERIOD IS LESS IMPORTANT FOR DISCOUNT STORES THAN FOR OTHER RETAIL FORMATS MANY RETAILERS ATTRACTED CUSTOMERS THE WEEK AFTER CHRISTMAS BY CUTTING PRICES QUOTE THE WEEK AFTER CHRISTMAS IS USUALLY A GOOD WEEK BUT IT WAS A VERY GOOD WEEK THIS YEAR QUOTE A DAYTON HUDSON CORPORATION SPOKESWOMAN SAID THERE WAS A LOT OF APPAREL ON SALE BECAUSE CONSUMERS DIDN'T BUY IT BEFORE CHRISTMAS SHE SAID FOR DECEMBER AS A WHOLE AUTO SALES AND HOME PRODUCT SALES CROWDED OUT APPAREL SALES SAID EDWARD JOHNSON A RETAIL ANALYST WITH LYNCH JONES AND RYAN INCORPORATED THAT WILL CONTINUE THIS YEAR BUT IT WON'T BE AS DESTRUCTIVE TO CLOTHING SALES HE SAID SOME DEPARTMENT STORES DID EXCEPTIONALLY WELL J. C. PENNEY COMPANY SAID STRONG SALES OF HOME FURNISHINGS AND APPAREL AND ITS BIGGER HOLIDAY ADVERTISING BUDGET PRODUCED A TEN PERCENT GAIN IN SAME STORE SALES WHICH REPRESENT SALES AT STORES OPEN AT LEAST A YEAR SEARS ROEBUCK AND COMPANY BENEFITED FROM IMPROVED CONSUMER ELECTRONICS APPLIANCE AND HOME FURNISHING SALES AS WELL AS STRONG APPAREL SALES WHICH HELPED THE COMPANY SCORE A THIRTEEN POINT THREE PERCENT SAME STORE SALES GAIN SALES AT OTHER DEPARTMENT STORE CHAINS WERE LESS BUOYANT MAY DEPARTMENT STORES COMPANY THE NATION'S LARGEST OPERATOR OF TRADITIONAL DEPARTMENT STORES REPORTED A FOUR POINT NINE PERCENT SALES GAIN IN DECEMBER FEDERATED DEPARTMENT STORES INCORPORATED SAID IT GOT TWO SURPISES FOR CHRISTMAS STEEPER THAN PLANNED DISCOUNTS AND HIGHER THAN EXPECTED SALES FEDERATED'S SAME STORE SALES INCREASED FOUR POINT EIGHT PERCENT FOR THE MONTH SPECIALTY APPAREL SELLERS WEREN'T SO LUCKY LIMITED INCORPORATED REPORTED A ONE PERCENT DECLINE IN SAME STORE SALES IN DECEMBER WHILE MELVILLE CORPORATION SAID ITS SALES DROPPED ZERO POINT EIGHT PERCENT IN THE MONTH GAP INCORPORATED HOWEVER FARED BETTER THAN MOST CLOTHING SELLERS REGISTERING A FOUR PERCENT SAME STORE SALES GAIN T. J. X. CO'S. SAMESTORE SALES INCREASED THREE PERCENT DISCOUNT STORE OPERATORS POSTED MODERATE GAINS WAL MART STORES INCORPORATED THE NATION'S LARGEST RETAILER SAID ITS DECEMBER SAME STORE SALES ROSE FOUR PERCENT THE COMPANY WAS HURT BY A FIVE PERCENT SAME STORE SALES DECLINE AT ITS SAM'S CLUB WAREHOUSE STORES KMART CORPORATION HURT BY POOR PERFORMANCE IN ITS WAREHOUSE AND DRUGSTORE UNITS EKED OUT A ONE POINT ONE PERCENT SAME STORE SALES INCREASE DAYTON HUDSON CORPORATION WHICH OPERATES TARGET DISCOUNT STORES MERVYN'S MODERATE PRICE STORES AND UPSCALE DEPARTMENT STORES REPORTED A THREE POINT TWO PERCENT SAME STORE SALES GAIN LOOKING AHEAD KAREN SACK A STANDARD AND POOR'S CORPORATION RETAIL ANALYST BELIEVES NINETEEN NINETY FOUR WILL HAVE ITS UPS AND DOWNS AS NINETEEN NINETY THREE DID THE FIRST QUARTER WILL PROBABLY BE VERY WEAK SHE SAID BEFORE PICKING UP LATER IN THE YEAR I'M LOOKING FOR A SAW TOOTHED PATTERN TO RETAIL SALES THIS YEAR DEAD MEN MAY TELL NO TALES BUT MADISON AVENUE IS COUNTING ON THEM TO SELL PRODUCTS DECEASED NOTABLES ARE BEING FEATURED IN PRINT AND TELEVISION ADS TO HAWK EVERYTHING FROM THE INTEGRITY OF BROKERAGE HOUSES TO THE COMFORT OF KHAKI TROUSERS COMPANIES SUCH AS MCDONALD'S GAP AND PEPSICO ARE SEARCHING THROUGH THE ESTATES OF THE DEPARTED TO GET PERMISSION AND PAY FEES FOR THE USE OF THE CELEBRITY ONE REASON FOR THE TREND SAY ADVERTISING INDUSTRY OFFICIALS IS THAT THERE'S VIRTUALLY NO RISK OF BEING EMBARRASSED NO MICHAEL JACKSON OR MADONNA TO WORRY PEPSI EXECUTIVES WITH THEIR ALLEGED MISBEHAVIOR LAST YEAR THE FLORIDA DEPARTMENT OF CITRUS AIRED COMMERCIALS WITH BURT REYNOLDS WHILE HIS MESSY SEPARATION FROM LONI ANDERSON WAS BEING PLAYED OUT IN TABLOIDS AND ON TALK SHOWS THE COMMERCIALS WERE PULLED IN JULY FOUR MONTHS BEFORE THE CONCLUSION OF MR. REYNOLDS' ONE YEAR CONTRACT QUOTE PEOPLE STARTED TALKING MORE ABOUT BURT REYNOLDS AND HIS DIVORCE THAN BURT REYNOLDS AND ORANGE JUICE QUOTE SAYS GENE RICHMOND THE STATE AGENCY'S DIRECTOR OF ADVERTISING A DEAD CELEBRITY IS A VERY SAFE COMMODITY FOR AN ADVERTISER TO USE THE CLIENT KNOWS WHAT HE IS GETTING SAYS MARK ROESLER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CURTIS MANAGEMENT IN INDIANAPOLIS WHICH REPRESENTS THE ESTATES AND FAMILIES OF DECEASED NOTABLES THE IMAGE THEY PROJECT DOESN'T DEVIATE FROM ONE MOMENT TO THE NEXT WITH LIVING CELEBRITIES A COMPANY MAY SIGN SOMEONE WHO IS CONSIDERED HOT AND SPEND MILLIONS BUILDING A MARKETING CAMPAIGN AROUND THAT PERSON IF THE CELEBRITY'S POPULARITY FADES QUICKLY THE AGENCY AND THE CLIENT ARE LEFT LOOKING FOR A NEW SPOKESMAN PERHAPS THAT IS WHY THE GAP'S WELL RECEIVED PRINT CAMPAIGN FOR ITS LINE OF KHAKI TROUSERS FEATURES SUCH STARS AS HUMPHREY BOGART ORSON WELLS ROCK HUDSON SAMMY DAVIS JUNIOR MARILYN MONROE PHOTOGRAPHER ANSEL ADAMS AND BROADWAY PRODUCER AND COMPOSER MOSS HART THERE ARE TWO LIVING CELEBRITIES IN THE GAP CAMPAIGN GENE KELLY AND PLAYWRIGHT ARTHUR MILLER A SPOKESMAN FOR THE SAN FRANCISCO BASED COMPANY SAYS THE CAMPAIGN BEGAN WHEN SOME MARKETING EXPERTS SUGGESTING USING PRESIDENT JOHN F. KENNEDY IN THE KHAKI ADS THAT WAS INSTANTLY RULED OUT BY OTHER GAP EXECUTIVES THE SPOKESMAN SAYS BUT GAP MARKETERS WERE TOLD TO DRAW UP A WISH LIST OF CELEBRITIES WHO ILLUSTRATE LEGENDARY STYLE MR. BOGART WHO DIED IN NINETEEN FIFTY SEVEN ALSO WAS ONE OF THE DEAD STARS ALONG WITH LOUIS ARMSTRONG JAMES CAGNEY AND CARY GRANT FEATURED IN A POPULAR DIET COKE CAMPAIGN IN NINETEEN NINETY TWO CURTIS MANAGEMENT WHICH HANDLES USE OF MR. BOGART'S IMAGE SAYS IT IS NEGOTIATING TO HAVE MR. BOGART'S IMAGE APPEAR IN ADS FOR A TELECOMMUNICATIONS COMPANY IT DECLINES TO NAME THE COMPANY MCDONALD'S COMPLETED A CAMPAIGN LATE LAST YEAR WITH ACTORS PORTRAYING THE COMEDY TEAM OF ABBOTT AND COSTELLO FOR A TAKEOFF ON THE DUO'S FAMOUS WHO'S ON FIRST ROUTINE EVEN THOUGH IMAGES OF NEITHER BUD ABBOTT NOR LOU COSTELLO WERE IN THE SPOTS MCDONALD'S HAD TO PAY A FEE TO CURTIS MANAGEMENT FOR USE OF THEIR LIKENESSES AND PEPSI IS USING A BUDDY HOLLY LOOKALIKE FOR AN INTERNATIONAL TELEVISION CAMPAIGN IN THE SPOT A BORED STUDENT IN AN ALGEBRA CLASS SAYS TO NO ONE IN PARTICULAR QUOTE AS BUDDY HOLLY WOULD SAY BE THERE OR BE SQUARE QUOTE THE CAMERA THEN FLASHES ON THE LOOKALIKE MARKETING EXPERTS SAY THE PARADE OF DECEASED STARS ISN'T GHOULISH CELEBRITIES LIKE BOGART RESONATE WITH BABY BOOMERS AND THEIR PARENTS SAYS LILLIAN MARESCH FOUNDER AND PRESIDENT OF GENERATION INSIGHTS IN MINNEAPOLIS THE BOOMERS ARE COMING TO TERMS WITH THEIR OWN MORTALITY AS THEY GET OLDER SO THEY DON'T NECESSARILY RUN FROM DEATH OR GET THE SAME GOOSE BUMPS AS WHEN THEY WERE CHILDREN OR YOUNG ADULTS BY NOW THEY'VE BEEN EXPOSED TO DEATH GARY STIBEL FOUNDER AND PRINCIPAL OF NEW ENGLAND CONSULTING A MANAGEMENT CONSULTING FIRM IN WESTPORT CONNECTICUT DOESN'T THINK THE GAP ADS MAKE THE BEST USE OF DEAD CELEBRITIES BUT HE PRAISES THE DIET COKE ADS BECAUSE THEIR USE OF FILM CLIPS MAKES THEM MORE MEMORABLE I'M NOT SURE PEOPLE REMEMBER BOGART IN GAP ADS HE SAYS THEY'RE MORE LIKELY TO REMEMBER HIM FROM THE DIET COKE SPOTS MR. STIBEL BELIEVES INTERNATIONAL BUSINESS MACHINES' USE OF CHARLIE CHAPLIN'S LITTLE TRAMP CHARACTER IN ITS PERSONAL COMPUTER COMMERCIALS THAT BEGAN RUNNING IN NINETEEN EIGHTY ONE IS THE QUOTE BEST EXAMPLE OF USING THE DECEASED THE CHARACTER COMPLEMENTED THE PRODUCT AND NEVER TOOK TOP BILLING INSTEAD THE CHARACTER WAS THE MESSENGER AND DIDN'T OVERSHADOW THE PRODUCT BUT I. B. M. DISCONTINUED THE CHAPLIN SPOTS IN NINETEEN EIGHTY SEVEN AND REPLACED THEM WITH CHARACTERS FROM THE HIT TELEVISION SERIES M*A*S*H THE SHOW HAD GONE OFF THE AIR FOUR YEARS EARLIER BUT WAS STILL POPULAR IN RERUNS ALL THE ACTORS FROM THE SITUATION COMEDY WERE ALIVE THE SPOTS BOMBED GERBER PRODUCTS COMPANY FREMONT MICHIGAN AND GREY ADVERTISING NEW YORK HAVE ENDED THEIR RELATIONSHIP IN THE U. S. AFTER THREE YEARS THE AGENCY SAID ANNUAL BILLINGS FROM GERBER'S BABY FOOD LINES ARE ABOUT TEN MILLION DOLLARS ACCORDING TO COMPETITIVE MEDIA REPORTING THE AGENCY ATTRIBUTED THE MUTUAL SPLIT TO POTENTIAL CONFLICTS BETWEEN EXISTING CLIENTS AND THE GERBER'S GRADUATES LINE OF READY TO EAT TODDLER FOOD GERBER HAS PLANS TO EXPAND THE LINE INTO FOOD CATEGORIES THAT COMPETE WITH BRANDS FROM OTHER GREY CLIENTS EXECUTIVES CLOSE TO THE SITUATION SAID GERBER DOESN'T HAVE IMMEDIATE PLANS TO HIRE A NEW FULL TIME AD AGENCY AND HAS ALREADY ASSIGNED ONE PROJECT TO A SMALL SHOP A GERBER SPOKESMAN COULDN'T BE REACHED FOR A COMMENT GREY WILL RETAIN THE GERBER ACCOUNT IN LATIN AMERICA AND THE AGENCY'S PUBLIC AFFAIRS AND LOBBYING UNIT APCO ALSO WILL CONTINUE TO WORK FOR GERBER THE LOSS FOLLOWS BY TWO DAYS GREY'S LOSS OF THE BIG QUAKER STATE MOTOR OIL AD ACCOUNT WHICH LEFT THE AGENCY FOR CHIAT SLASH DAY ACCOUNT MUSICLAND STORES CORPORATION MINNEAPOLIS TAPPED W. B. DONER AND COMPANY DETROIT TO HANDLE THE CREATIVE PORTION OF ITS NATIONAL T. V. ADVERTISING FOR THE MUSICLAND AND SAM GOODY MUSIC CHAINS A NEW ACCOUNT THE CLIENT WILL CONTINUE TO HANDLE MEDIA PLANNING AND BUYING BILLINGS ARE ESTIMATED AT ABOUT TEN MILLION DOLLARS PEPSICO'S KENTUCKY FRIED CHICKEN TAPPED MINGO GROUP NEW YORK FOR ADVERTISING TO THE AFRICAN AMERICAN MARKET AN ASSIGNMENT PREVIOUSLY AT EQUINOX GROUP CHICAGO ACQUISITION FALLON MCELLIGOTT MINNEAPOLIS SAID IT HAS ACQUIRED JOE DUFFY DESIGN INCORPORATED A MINNEAPOLIS PACKAGE DESIGN SHOP TERMS WEREN'T DISCLOSED MR. DUFFY WILL HAVE A SEAT ON THE AGENCY'S BOARD AN AGENCY SPOKESWOMAN SAID FALLON AND DUFFY SHARE AN IMPORTANT CLIENT COCA COLA COMPANY FOR WHICH THEY WORK ON SPECIAL PROJECTS WHO'S NEWS SAATCHI AND SAATCHI'S C. M. E. KHBB NAMED HOWARD LISZT TO THE POST OF PRESIDENT AND CHIEF OPERATING OFFICER A NEW POSITION PREVIOUSLY MR. LISZT FORTY SEVEN YEARS OLD OVERSAW THE AGENCY'S CHICAGO AND MINNEAPOLIS OFFICES KETCHUM ADVERTISING A UNIT OF KETCHUM COMMUNICATIONS NAMED JAMES FICCO THE THIRD THIRTY NINE YEAR OLD EXECUTIVE VICE PRESIDENT TO THE POST OF PRESIDENT OF THE PITTSBURGH OFFICE SUCCEEDING JAN HEDQUIST WHO WAS NAMED VICE CHAIRMAN IN CHARGE OF AGENCY OPERATIONS AT THE PARENT COMPANY MORE AND MORE PEOPLE ARE BUYING MUTUAL FUNDS THROUGH DISCOUNT BROKERAGE FIRMS ATTRACTED BY CONVENIENCE AND THE FACT THAT THE BROKERS ARE ELIMINATING THEIR USUAL TRANSACTION FEES FOR A GROWING NUMBER OF FUNDS DISCOUNTERS SUCH AS CHARLES SCHWAB AND COMPANY FIDELITY DISCOUNT BROKERAGE AND JACK WHITE AND COMPANY OFFER A SELECTION OF SOME TWO HUNDRED FUNDS THAT CAN BE BOUGHT WITHOUT THE FEES THAT NORMALLY GET TACKED ON WHEN EVEN NO LOAD FUNDS ARE BOUGHT THROUGH A BROKER THE SAVINGS CAN BE ANYWHERE FROM TWENTY DOLLARS TO SEVERAL HUNDRED DOLLARS PER TRANSACTION DEPENDING ON THE BROKERAGE FIRM AND THE SIZE OF THE INVESTMENT MANY FINANCIAL ADVISERS SAY THE QUOTE NO TRANSACTION FEE QUOTE SERVICES ARE A TREMENDOUS BOON FOR INVESTORS BUT THEY CAUTION THAT INVESTORS SHOULDN'T NECESSARILY LIMIT THEMSELVES TO FUNDS THAT ARE BEING SOLD THAT WAY ESPECIALLY IF THAT MEANS FORGOING DIVERSITY OR TOP QUALITY TOP PERFORMING FUNDS FROM GROUPS NOT ON A PARTICULAR BROKERAGE FIRM'S NO FEE LIST FOR YEARS DISCOUNT BROKERS SUCH AS SCHWAB HAVE BEEN A QUICK ONE STOP MARKETPLACE FOR INVESTORS TO BUY SHARES OF ANY OF A THOUSAND OR MORE MUTUAL FUNDS FROM HUNDREDS OF THE MAJOR MUTUAL FUND COMPANIES FOR THE MOST PART THE FUNDS THEY SELL ARE NO LOAD FUNDS OR FUNDS WITH LOW UPFRONT SALES CHARGES THIS SERVICE ENABLES INVESTORS TO CONVENIENTLY ASSEMBLE A DIVERSIFIED PORTFOLIO OF FUNDS AND MAKES IT EASY TO SWITCH FROM ONE FUND COMPANY'S OFFERINGS TO ANOTHER'S WITHIN A SINGLE DAY IT CAN TAKE A WEEK OR LONGER TO SWITCH AMONG FUND COMPANIES IF AN INVESTOR BUYS DIRECTLY FROM FUND COMPANIES DISCOUNT BROKERAGE CUSTOMERS ALSO GET ONE CONSOLIDATED STATEMENT OUTLINING THE ACTIVITY IN EACH OF THEIR FUNDS RATHER THAN MULTIPLE MAILINGS FROM SEVERAL FUND GROUPS MORE RECENTLY SEVERAL DISCOUNTERS HAVE SWEETENED THE DEAL WITH NO TRANSACTION FEE FUNDS IN LIEU OF CHARGING INVESTORS TO BUY AND SELL THE BROKERAGES CHARGE THE FUND GROUPS TO HAVE THEIR FUNDS ON A NO TRANSACTION FEE LIST HORDES OF INVESTORS HAVE ENTHUSIASTICALLY EMBRACED THE CONCEPT IN ONLY SIXTEEN MONTHS SCHWAB HAS SEEN A WHOPPING EIGHT BILLION DOLLARS IN PURCHASES THROUGH ITS ONESOURCE PROGRAM WITH TWO HUNDRED FIFTY MILLION DOLLARS MORE COMING IN EVERY WEEK ON AVERAGE MORE COMPANIES ARE SCRAMBLING TO MEET THE NEWFOUND DEMAND BULL AND BEAR SECURITIES A NEW YORK DISCOUNT BROKER CURRENTLY OFFERS ONLY EIGHT BULL AND BEAR FUNDS WITHOUT TRANSACTION FEES BUT BEGINNING EARLY THIS YEAR IT PLANS TO OFFER SEVENTY FIVE NO TRANSACTION FEE FUNDS FROM FIVE SEPARATE FUND GROUPS SAYS MARK WINMILL THE COMPANY'S PRESIDENT BUT DESPITE THE POPULARITY OF NO FEE INVESTING SOME ADVISERS SAY IT WOULD BE A MISTAKE TO OVERLOOK OTHER FUNDS SIMPLY BECAUSE BUYERS HAVE TO PAY A FEE TO BUY INTO THEM THROUGH THEIR FAVORITE DISCOUNTER PAUL SOLLI MANAGING DIRECTOR OF FINANCIAL DESIGN AN INVESTMENT ADVISORY FIRM IN LARKSPUR CALIFORNIA SAYS INVESTORS SHOULD STILL SEEK OUT FUNDS THAT HAVE A LOW OVERALL EXPENSE RATIO WHILE A DISCOUNT BROKER'S TRANSACTION FEE IS A ONE TIME HIT FOR A BUY AND HOLD INVESTOR ANNUAL MANAGEMENT FEES AND OTHER COSTS REFLECTED IN A FUND'S EXPENSE RATIO CAN DIMINISH YOUR OVERALL RETURN YEAR AFTER YEAR HE NOTES THAT TWO QUALITY FUND FAMILIES T. ROWE PRICE ASSOCIATES AND VANGUARD GROUP HAVE UNUSUALLY LOW EXPENSE RATIOS ALTHOUGH THEY AREN'T OFFERED ON DISCOUNTERS' NO TRANSACTION FEE MENUS THE FEE FREE PHENOMENON MAY TAKE ATTENTION AWAY FROM LOW EXPENSE RATIO FUNDS MR. SOLLI SAYS FOR INVESTORS LOOKING TO INVEST IN THE NEWLY FEE FREE FUNDS IT MIGHT PAY TO LOOK AT THE MENU AT MORE THAN ONE DISCOUNTER SOME FUNDS MAY BE SOLD WITHOUT TRANSACTION FEES AT ONE FIRM BUT NOT ANOTHER JACK WHITE IN SAN DIEGO OFFERS PIMCO FUNDS WHICH ARE NORMALLY SOLD ONLY TO LARGE INSTITUTIONAL INVESTORS FOR A FIVE THOUSAND DOLLAR MINIMUM INVESTMENT INDIVIDUALS CAN BUY THE PIMCO FUNDS OFFERED BY JACK WHITE WITHOUT TRADING FEES SCHWAB CUSTOMERS CAN ALSO BUY OR SELL PIMCO FUND SHARES BUT THEY HAVE TO PAY SCHWAB'S USUAL MUTUAL FUND TRANSACTION FEES SIMILARLY ONLY FIDELITY'S DISCOUNT BROKERAGE FIRM SELLS FIDELITY FUNDS WITHOUT TRANSACTION FEES SOME DISCOUNT BROKERAGE FIRMS ALSO LIMIT IN AND OUT TRADING INVESTORS WHO BUY FUNDS THROUGH FIDELITY'S FUNDSNETWORK FOR INSTANCE ARE ALLOWED TO SELL FUND SHARES THEY HAVE HELD LESS THAN SIX MONTHS ONLY FOUR TIMES EVERY TWELVE MONTHS BEYOND THAT LIMIT CUSTOMERS MUST PAY TRANSACTION FEES AS A RESULT ACTIVE FUND TRADERS MAY FIND THAT THE NO FEE SERVICE ISN'T A HUGE SAVINGS SOME BROKERAGES ALSO CHARGE TRANSACTION FEES IF THE AMOUNT AN INVESTOR REDEEMS IS TOO SMALL AT MURIEL SIEBERT AND COMPANY AND JACK WHITE CUSTOMERS WHO REDEEM SHARES VALUED AT LESS THAN FIVE THOUSAND DOLLARS PAY A TRANSACTION FEE EVEN ON NO TRANSACTION FEE FUNDS EVEN IF INVESTORS HAVE TO PAY TRANSACTION FEES MANY INVESTMENT ADVISERS SAY DISCOUNT BROKERS ARE HARD TO BEAT NOT LEAST FOR THE CONSOLIDATED STATEMENTS THEY PROVIDE WITHOUT THIS FEATURE INVESTORS ARE OFTEN OVERWHELMED WITH PAPERWORK MR. SOLLI SAYS AND IN SOME CASES INVESTORS HAVE ACCESS TO FUNDS THROUGH DISCOUNT BROKERS THAT THEY PROBABLY COULDN'T GET INTO ELSEWHERE AT SCHWAB INVESTORS CAN GET INTO THREE FUNDS FROM MUTUAL SERIES FUNDS THAT ARE GENERALLY CLOSED TO NEW INVESTORS AND FOR A TWO THOUSAND FIVE HUNDRED DOLLAR MINIMUM INVESTMENT A SCHWAB INVESTOR COULD BUY SHARES OF ONE OF SIX MAS FUNDS THAT ARE NORMALLY AVAILABLE ONLY TO INSTITUTIONAL INVESTORS WITH A MILLION DOLLARS OR SO TO INVEST DISCOUNT BROKERAGE CUSTOMERS CAN ALSO BORROW AGAINST THEIR MUTUAL FUNDS THROUGH MARGIN LOANS WITH SUCH LOANS YOU CAN GENERALLY BORROW AS MUCH AS HALF OF YOUR ACCOUNT BALANCE AT RATES THAT ARE CURRENTLY AROUND SIX PERCENT TO SIX POINT SEVEN FIVE PERCENT INVESTORS CAN BORROW TO BUY ADDITIONAL SHARES OF THE FUND OR OTHER SECURITIES OR TO FREE UP LOW COST CASH GERALD PERRITT EDITOR AND PUBLISHER OF THE MUTUAL FUND LETTER IN CHICAGO SAYS MOST INVESTORS SHOULD BE ABLE TO BUILD A SOLID PORTFOLIO THROUGH DISCOUNT BROKERS CAN YOU GET EVERY FUND NUMBER BUT CAN YOU GET ENOUGH DIVERSITY THAT YOU CAN PUT TOGETHER A PORTFOLIO OF BETTER PERFORMING FUNDS YES ARIZONA IS THE LATEST BATTLEGROUND OVER SCHOOL CHOICE CHILDREN ARE ACTUALLY BEING SENT HOME WITH FLYERS FROM THEIR TEACHERS OPPOSING THE ADDITION OF VOUCHERS TO AN EDUCATION REFORM BILL NOW BEFORE THE LEGISLATURE NONETHELESS GOVERNOR FIFE SYMINGTON AND LEGISLATIVE LEADERS BOTH FAVOR VOUCHERS THEY NOTE TWO THOUSAND PARENTS OF SPECIAL ED KIDS ALREADY GET STATE VOUCHERS FOR USE IN PRIVATE SCHOOLS BUT TEACHERS' UNIONS VOW TO OPPOSE ANY LEGISLATOR WHO WANTS TO EXPAND THE PROGRAM TO OTHER PARENTS BEV HERMON CHAIRMAN OF THE SENATE EDUCATION COMMITTEE TOLD HER COLLEAGUES THIS WEEK SHE PHILOSOPHICALLY SUPPORTS VOUCHERS BUT WORRIES THEIR INCLUSION MIGHT DOOM THE ENTIRE EDUCATION REFORM BILL BUT VOUCHERS HAVE BECOME THE LITMUS TEST OF WHETHER AN EDUCATION BILL IS TRUE REFORM SEVERAL SENATORS PROMISE TO VOTE AGAINST THE BILL IF IT DOESN'T INCLUDE VOUCHERS TAXPAYERS ARE TIRED OF REFORM BILLS THAT DON'T HOLD SCHOOLS ACCOUNTABLE ADDING A MODEST VOUCHER PROGRAM IS THE CLEAREST WAY ANY LEGISLATURE CAN SIGNAL SCHOOL BUREAUCRATS THEY'RE PUTTING AN END TO SPENDING AS USUAL PURITAN BENNETT CORPORATION AFTER REACHING A CONSENT DECREE WITH THE FOOD AND DRUG ADMINISTRATION THAT TEMPORARILY STOPS ITS SALE OF PORTABLE VENTILATORS AND BLOOD GAS MONITORING EQUIPMENT IN THE U. S. SAID IT WILL CLOSE A BOULDER COLORADO PLANT THE COMPANY ALSO WILL TAKE A RESTRUCTURING CHARGE IN THE CURRENT FISCAL FOURTH QUARTER THE F. D. A. REQUIRED THE TEMPORARY HALT OF SHIPMENTS UNTIL IT CAN DETERMINE IF PURITAN BENNETT IS MEETING FEDERAL MEDICAL DEVICE MANUFACTURING REGULATIONS AT CERTAIN PRODUCTION PLANTS PURITAN BENNETT ALSO SAID IT PLANS TO QUOTE SUBSTANTIALLY CURTAIL QUOTE THE PRODUCTION OF BLOOD GAS MONITORING DEVICES SALES OF WHICH HAVE BEEN DISAPPOINTING EMPLOYMENT IN THE DIVISION WILL BE CUT AND THE COMPANY WILL SEEK A PARTNER IN THAT BUSINESS THE COMPANY ONCE HAD HIGH HOPES FOR THE RELATIVELY NEW BUSINESS OF MAKING THE GAS MONITORING DEVICES BUT ITS SALES IN THIS FIELD FOR THE YEAR ENDING THIS MONTH ONLY WILL BE BETWEEN TWO MILLION DOLLARS AND FIVE MILLION DOLLARS ANALYSTS ESTIMATED SEPARATELY THE F. D. A. CONCLUDED THAT A PURITAN BENNETT HUMIDIFIER AND VENTILATOR PROBABLY WEREN'T TO BLAME FOR A FATAL FIRE SEPTEMBER FIRST AT MAIMONIDES MEDICAL CENTER IN NEW YORK THE AGENCY HAD SAID THE FIRE WAS BELIEVED TO HAVE ORIGINATED IN ONE OF THE DEVICES EVERY MARRIOTT HOTEL BOASTS A DIFFERENT ONE SIGNED BY THE BELLHOPS CLERKS AND MAIDS AVIS INCORPORATED HAS ONE HUNDRED FIFTY ALL HANGING ON A WALL AT CORPORATE HEADQUARTERS HUNDREDS OF WORKERS AT A HOUSTON METALWORKING COMPANY CARRY CREDIT CARD SIZED VERSIONS IN THEIR SHIRTPOCKETS AND WALLETS THEY'RE QUOTE MISSION QUOTE STATEMENTS AND THEY'RE FAST BECOMING THE LATEST MANAGEMENT MANIA FACING TOUGHER COMPETITION AND TIGHTER BUDGETS MORE COMPANIES CITIES SCHOOLS AND EVEN INDIVIDUALS ARE TAKING STOCK OF WHO THEY ARE WHAT THEY DO AND HOW THEY PLAN TO DO IT BETTER THEN THEY'RE WRITING IT ALL DOWN THE RESULT A PROLIFERATION OF MISSIONS VISIONS VALUES AND THE LIKE EMBLAZONED ON ANNUAL REPORTS FACTORY WALLS AND COMPANIES HOPE THE PSYCHES OF THEIR WORKERS IT'S THE NEW GROUPTHINK IF WE STATE OUR GOALS WE'RE MORE LIKELY TO MEET THEM IT'S SORT OF LIKE THE TEN COMMANDMENTS SAYS ASHLEY E. LEBLANC DIRECTOR OF NORTHERN PENOBSCOT TECH A VOCATIONAL HIGH SCHOOL IN LINCOLN MAINE WHICH RECENTLY DRAFTED MISSION AND VISION STATEMENTS MORE THAN FIFTY PERCENT OF BIG COMPANIES HAVE MISSION STATEMENTS NOW TWICE AS MANY AS FIVE YEARS AGO SAYS MARY RABAUT A VICE PRESIDENT WITH GEMINI CONSULTING MORRISTOWN N. J. CAVAS M. GOBHAI A CAMBRIDGE MASSACHUSETTS CONSULTANT SAYS COMPANIES ARE CLAMORING TO HIRE HIM AT THREE THOUSAND DOLLARS A DAY TO HELP DIVINE THEIR VISIONS SUCH WORK NOW MAKES UP HALF HIS BUSINESS UP FROM TEN PERCENT FIVE YEARS AGO LESS COSTLY APPROACHES ARE ALSO BOOMING JAN COOK REICHER A HOBOKEN N. J. SMALL BUSINESS CONSULTANT GOT SO MANY CLIENT INQUIRIES ABOUT VISION STATEMENTS THAT SHE PUT TOGETHER A SIX PAGE GUIDE TO WRITING THEM THE GUIDE SUGGESTS SENTENCES LIKE WE ARE COMMITTED TO PROVIDING UNEQUALED QUALITY SHE SAYS SHE HAS DISTRIBUTED ONE THOUSAND FIVE HUNDRED COPIES IN THE LAST YEAR AT TEN DOLLARS APIECE BUT MANY VISION STATEMENTS ARE UNINSPIRING DESPITE ALL THE EFFORT DEVOTED TO DEVELOPING THEM OFFICIALS AND FACULTY AT STANFORD'S BUSINESS SCHOOL SPENT MORE THAN A YEAR DEBATING THEIR MISSION AND STRATEGY BEFORE UNVEILING THE RESULTS IN NOVEMBER SURPRISE THE SCHOOL'S GOAL IS TO BE THE LEADING ACADEMIC SCHOOL OF MANAGEMENT IN THE WORLD IN TERMS OF ITS IMPACT ON MANAGEMENT THEORY THINKING PRACTICE AND PERFORMANCE BASICALLY THE SCHOOL'S GOAL BEFORE THE MISSION STATEMENT WAS WRITTEN YET ONE MISSION ISN'T ALWAYS ENOUGH BELL ATLANTIC CORPORATION BOASTS A WHOLE PACKAGE DETAILING ITS BUSINESS PURPOSE VISION VALUES GOALS KNOWN AS BLUE CHIPS A FIVE STEP MANAGEMENT BY COMMITMENT PROCESS AND THE BELL ATLANTIC WAY SEVEN BEHAVIORS AND PROCESSES DESIGNED TO PROMPT CHANGES IN THE COMPANY'S CULTURE SOMERSET COUNTY N. J. RECENTLY DEVELOPED MORE THAN FIFTY MISSION STATEMENTS ONE FOR THE COUNTY AND SEPARATE ONES FOR EACH ADMINISTRATIVE DEPARTMENT AND DIVISION BUT BEFORE DOING SO OFFICIALS SURVEYED ONE THOUSAND FOUR HUNDRED COUNTY WORKERS TO GLEAN QUOTE KEYWORDS QUOTE AND PHRASES DESCRIBING WHAT THEY DO FOR COUNTY RESIDENTS MARRIOTT INTERNATIONAL INCORPORATED WENT EVEN FURTHER AFTER DEVELOPING SEPARATE MISSION STATEMENTS FOR THE CORPORATION AND FOR ITS HOTEL DIVISION THE COMPANY IN NINETEEN NINETY TWO ASKED EACH OF SOME TWO HUNDRED FIFTY HOTELS TO CRAFT MISSION STATEMENTS OF THEIR OWN EACH HOTEL'S TOP MANAGERS WROTE A FIRST DRAFT THEN STAFF MEMBERS REFINED THE STATEMENTS DURING THREE DAYS OF VISIONING EXERCISES SITTING AT ROUND TABLES OF EIGHT OR TEN HOUSEKEEPERS COOKS DESK CLERKS AND OTHERS GRILLED MANAGERS INTERVIEWED CUSTOMERS AND TORE THROUGH THE DRAFTS PLASTERING WALLCHARTS WITH SUGGESTIONS FOR IMPROVEMENTS THOSE EVENTS WERE INCREDIBLY POWERFUL SAYS BOB NICHOLS A SENIOR VICE PRESIDENT FOR MARRIOTT'S HOTEL UNIT AND COSTLY TOO THE COMPANY ASSIGNED SEVENTY PEOPLE TO TRAVEL FULL TIME TO OVERSEE THE MISSION SESSIONS AND IT MOVED STAFF FROM NEARBY HOTELS TO COVER FOR PARTICIPANTS WHEN SESSIONS TOOK PLACE NOT HAVING A MISSION THESE DAYS CAN MEAN TROUBLE IN ONE OF HIS FIRST PUBLIC STATEMENTS AFTER ASSUMING THE HELM AT INTERNATIONAL BUSINESS MACHINES CORPORATION LOUIS V. GERSTNER JUNIOR MADE HEADLINES AND STIRRED SHAREHOLDER CONCERN WHEN HE SAID THIS PAST SUMMER THAT THE LAST THING I. B. M. NEEDS RIGHT NOW IS A VISION EXPLAINS A COMPANY SPOKESMAN WHAT LOU GERSTNER WAS SAYING WAS THAT A TWENTY FIVE OR THIRTY WORD SENTENCE IS SIMPLISTIC AND NOT REALISTIC AND NOT HIS FIRST PRIORITY BUT SINCE THEN MR. GERSTNER HAS DISTRIBUTED TO EMPLOYEES A LIST OF I. B. M. PRINCIPLES CONSISTING OF EIGHT SENTENCES OF EIGHT TO EIGHTEEN WORDS EACH THE PRINCIPLES PLEDGE QUOTE A MINIMUM OF BUREAUCRACY QUOTE AND SENSITIVITY TO STAFF AND OTHERS AND THE SPOKESMAN SAYS MR. GERSTNER DOES PLAN TO ARTICULATE AN EXPLICIT VISION FOR THE COMPANY SOMETIME IN NINETEEN NINETY FOUR SOME MANAGEMENT EXPERTS SAY THAT MANY ORGANIZATIONS DEVOTE TOO MUCH TIME TO DEVELOPING MISSION STATEMENTS AND NOT ENOUGH TO MEETING THEM A LOT OF COMPANIES SEE THIS AS A QUICK FIX SAYS JAMES C. SHAFFER A VICE PRESIDENT WITH CONSULTANTS TOWERS PERRIN THESE ORGANIZATIONS USE VISION AS A PUBLIC RELATIONS TOOL NOT AS SOMETHING TO CHANGE THE FUNDAMENTAL CULTURE MS. RABAUT OF GEMINI CONSULTING CITES A COMMON PROBLEM EMPLOYEES WHO ARGUE WITH CUSTOMERS BLATANTLY IGNORING THEIR COMPANY'S MISSION PROCLAMATION THAT THE CUSTOMER IS ALWAYS RIGHT STILL EXPERTS CONTEND THAT COMPANIES CAN BENEFIT FROM A VISION IF IT IS IMPLEMENTED THE RIGHT WAY ONE STUDY SHOWS THAT EIGHTEEN VISIONARY COMPANIES OUTPERFORMED A CONTROL GROUP IN THE STOCK MARKET BY MORE THAN SIX TO ONE MEASURED OVER THE PERIOD NINETEEN TWENTY SIX TO NINETEEN NINETY JERRY PORRAS PROFESSOR OF ORGANIZATIONAL BEHAVIOR AT STANFORD AND THE STUDY'S CO AUTHOR SAYS QUOTE VISIONARY QUOTE COMPANIES STAND OUT PARTLY BY SETTING AMBITIOUS GOALS COMMUNICATING THEM TO EMPLOYEES AND FOLLOWING WHAT HE TERMS A QUOTE CORE IDEOLOGY QUOTE A PURPOSE BEYOND MAKING MONEY FOR INSTANCE HE CITES WALT DISNEY COMPANY'S AIM OF MAKING PEOPLE HAPPY AS CRITICAL TO ITS SUCCESS YOU CAN SIT DOWN AND GENERATE A VISION IN A FEW DAYS BUT THAT ISN'T ENOUGH MR. PORRAS SAYS YOU NEED TO ALIGN THE ORGANIZATION TO ACHIEVE IT ORGANIZATIONS MUST ALSO CHANGE THEIR MISSIONS AND VISIONS TO KEEP UP WITH THE TIMES MR. PORRAS AND OTHER EXPERTS SAY MARS INCORPORATED MODIFIED ITS FIVE PRINCIPLES LAST YEAR TO INCORPORATE REFERENCES TO THE CANDY COMPANY'S AMBITIONS ABROAD BELL ATLANTIC PLANS TO MODIFY ITS VISION TO BE THE WORLD'S BEST COMMUNICATIONS AND INFORMATION MANAGEMENT COMPANY TO INCORPORATE ENTERTAINMENT FOLLOWING ITS ACQUISITION OF CABLE GIANT TELE COMMUNICATIONS INCORPORATED AND JOHNSON AND JOHNSON THIS YEAR WILL CONVENE EXECUTIVES AND SURVEY ITS EIGHTY THOUSAND EMPLOYEES TO SOLICIT POSSIBLE CHANGES FOR ITS FIFTY YEAR OLD QUOTE CREDO QUOTE A REVIEW THAT TAKES PLACE EVERY FEW YEARS THE LAST CREDO CHANGE CAME IN NINETEEN EIGHTY NINE WHEN THE COMPANY DECLARED ITS FIRST RESPONSIBILITY NOT JUST TO THE DOCTORS NURSES PATIENTS AND MOTHERS WHO USE ITS PRODUCTS BUT TO FATHERS TOO ANOTHER CHALLENGE IS EXPRESSING A MISSION OR VISION BRIEFLY BOOSTING THE CHANCE THAT EMPLOYEES WILL REMEMBER IT HEWLETT PACKARD COMPANY TRIED THAT LAST YEAR AFTER CONCLUDING THAT ITS DETAILED STATEMENTS OF ORGANIZATIONAL VALUES CORPORATE OBJECTIVES AND STRATEGIES AND PRACTICES WERE NOT IMMEDIATELY SUCCINCT AND QUITE WORDY SAYS JOHN R. EATON THE COMPANY'S BUSINESS DEVELOPMENT MANAGER THE SOLUTION A NEW ONE LINE PURPOSE STATEMENT JUST NINETEEN WORDS LONG BUT THE COMPANY COULDN'T STOP THERE FOLLOWING THE PURPOSE IS A FIVE LINE EXPLANATION HEADLINED WHAT DOES IT ALL MEAN GULF CANADA RESOURCES LIMITED A CALGARY ALBERTA OIL PRODUCER SAID IT PLANS TO ISSUE THREE HUNDRED MILLION DOLLARS OF SENIOR SUBORDINATED DEBENTURES IN THE U. S. GULF CANADA SAID IT FILED A PRELIMINARY PROSPECTUS SUPPLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND THE ALBERTA SECURITIES COMMISSION FOR THE ISSUE WHICH IT SAID IS TO BE UNDERWITTEN BY SALOMON BROTHERS INCORPORATED AND MORGAN STANLEY AND COMPANY GULF WHICH IS SEVENTY PERCENT OWNED BY CREDITORS OF THE REICHMANN FAMILY'S BANKRUPT OLYMPIA AND YORK DEVELOPMENTS LIMITED SAID IT WILL USE THE PROCEEDS TO PREPAY PART OF ITS SENIOR BANK DEBT DUE IN NINETEEN NINETY SIX OLYMPIA AND YORK DEVELOPMENTS LIMITED WAS REORGANIZED LAST YEAR UNDER PROTECTION OF A CANADIAN LAW SIMILAR TO CHAPTER ELEVEN OF THE U. S. BANKRUPTCY CODE AN ITEM IN THE FINANCING BUSINESS COLUMN FRIDAY INCORRECTLY DESCRIBED THE COMPANY AS BANKRUPT FOR YEARS OR MAYBE IT JUST SEEMS LIKE YEARS YOUR EDITORIALS HAVE GROUSED ABOUT AMERICA'S QUOTE CRUMMY QUOTE ARTISTS THE BLIGHT OF GANGSTA RAP MURPHY BROWN ET CETERA UNDER THE RUBRIC OF SOMETHING YOU'VE BEEN PLEASED TO CALL QUOTE THE CULTURE WARS QUOTE YET IN YOUR DECEMBER SIXTEENTH EDITORIAL CAPTIVE CULTURE YOU SNEER AT G. A. T. T. NEGOTIATORS WHO FEAR THAT AMERICAN FILMS AND MUSIC INJECT AN ALIEN VIRUS INTO THE PURITY OF EUROPEAN LIFE THIS SUDDEN CONVERSION ON YOUR PART SEEMS STRANGE YOU EVEN CITE AS COUNTERVAILING EVIDENCE OF EUROPE AND AMERICA'S ROBUST COMMON CULTURAL TRADITION THE INFLUENCE OF AMERICAN R. AND B. ON JOHN LENNON WHO GIVEN HIS LIFELONG COMMITMENT TO RADICAL CAUSES IS A STRANGE CHAMPION FOR CONSERVATIVE CULTURE WARRIORS SUCH AS YOURSELVES ALSO IN AN ACCOMPANYING ASIDE T. V. VIOLENCE YOU SCOFF AT A TASK FORCE'S REQUEST THAT VIOLENCE BE KEPT OFF PRIME TIME T. V. SUGGESTING THAT A LOT OF PEOPLE WHO BEAT THEIR BRAINS OUT ALL DAY TRADING DERIVATIVES AND SUCH LIKE TO UNWIND FROM EIGHT P. M. ONWARD WITH OLD FRIENDS LIKE DIRTY HARRY THE GODFATHER OR BRUCE LEE MAY ONE ASSUME FROM THIS THAT IF YOUNG AFRICAN AMERICANS WISH TO UNWIND AFTER A LONG DAY WITH OLD FRIENDS SUCH AS SNOOP DOGGY DOGG OR ICE T. THE NEW POP CULTURE FRIENDLY JOURNAL WILL BE SIMILARLY SUPPORTIVE YOUR DECEMBER SIXTH PAGE ONE ARTICLE QUOTE RED MERCURY IS HOT QUOTE ALLEGES THAT RED MERCURY IS USED FOR NUCLEAR PURPOSES IN MY DISCUSSION WITH YOUR REPORTER I MADE THE ANALOGY THAT ETHANOL IS USED IN BRAZIL AS A FUEL BUT CAN ALSO BE USED TO MAKE EXPLOSIVE MATERIALS IN OTHER WORDS THE POTENTIAL TO CONVERT INNOCUOUS MATERIALS INTO DANGEROUS ONES IS A MODERN DAY REALITY THAT THE WORLD MUST FACE ADDITIONALLY COUNTRIES PRODUCING IMPORTING AND EXPORTING SUCH COMMODITIES IMPOSE STRICT REGULATIONS ON THEIR COMMERCE THEREFORE RED MERCURY WHICH IS NOT RADIOACTIVE POSES LESS OF A THREAT THAN MANY OTHER SUBSTANCES SOLD ON THE WORLD MARKET IN THE DECEMBER TWENTY SEVENTH JANUARY THIRD NEW YORK OBSERVER COLUMNIST RICHARD BROOKHISER COMMENTS ON THE LONG ISLAND RAIL ROAD'S RECENT MASS MURDER IF EVER THERE WAS A HATE CRIMINAL COLIN FERGUSON IS IT HE HATED WHITES ASIANS AND QUOTE UNCLE TOM NEGROES QUOTE WHO DID THEIR BIDDING HIS WIFE DIVORCED HIM BECAUSE OF THE VIRULENCE OF HIS RACIAL VIEWS HIS LANDLORD WAS ABOUT TO EVICT HIM FOR THE SAME REASON HE HAD BEEN ARRESTED BY THE TRANSIT POLICE AS IT HAPPENS FOR A RACIAL TIFF AFTER HIS MURDEROUS DEED WAS DONE HIS POCKETS WERE FOUND STUFFED WITH RACIST RANTINGS THE USUAL WATCHDOGS OF HATE CRIME HAVE FALLEN STRANGELY SILENT IN THIS CASE HOWEVER FOR THE OBVIOUS REASON THAT COLIN FERGUSON'S HATRED WAS NOT THE KIND OF HATRED THEY EXPECTED TO BE PUNISHING THE CATEGORY OF THE HATE CRIME WAS MEANT TO DRAW ATTENTION TO THE LEVEL OF WHITE RACISM IN AMERICA THE HONG KONG STOCK MARKET ONE OF THE WORLD'S HIGHEST FLYING PLUNGED SIX POINT FIVE PERCENT THURSDAY AND LEFT MANY INVESTORS WONDERING WHETHER THE DECLINE SIGNALED THE END OF A LONG BULL RUN THAT HAS BEEN FUELED BY CHINA'S BOOMING ECONOMY SEVERAL MONEY MANAGERS FORECAST FURTHER DECLINES ADDING THAT IT WOULD TAKE AN EXTENDED RETREAT TO CONVINCE THEM TO BUY MORE HONG KONG STOCKS AND EVEN THOSE WHO FELT PRICES WILL RECOVER QUICKLY WARNED THAT INVESTORS SHOULD READ THURSDAY'S EVENTS AS AN OMEN THAT THE EASY RIDE UPWARD IN HONG KONG SHARES IS OVER THE BENCHMARK HANG SENG INDEX FELL SEVEN HUNDRED NINETY THREE POINT FOUR THREE POINTS TO ELEVEN THOUSAND THREE HUNDRED SEVENTY FOUR POINT FIVE OH FROM TWELVE THOUSAND ONE HUNDRED SIXTY SEVEN POINT NINE THREE ON WEDNESDAY REGISTERING ITS BIGGEST SINGLEDAY POINT DROP SINCE THE OCTOBER NINETEEN EIGHTY SEVEN GLOBAL STOCK MARKET CRASH QUOTE WHAT WE SAW IN HONG KONG TODAY WAS INEVITABLE GIVEN THE PACE AND EXTENT OF THE RECENT RISE IN THE MARKET QUOTE SAID HEATHER MANNERS A DIRECTOR AT HENDERSON INVESTMENT MANAGEMENT IN LONDON REGARDED AS THE BEST WAY TO PLAY CHINA'S FAST ECONOMIC GROWTH THE HONG KONG STOCK MARKET SOARED ONE HUNDRED SIXTEEN PERCENT LAST YEAR THIRTY PERCENT IN DECEMBER ALONE FERMIN DA COSTA GOMEZ A PORTFOLIO MANAGER AT PACIFIC ASSET MANAGEMENT N. V. IN AMSTERDAM COMPARED THE MARKET TO A JET FIGHTER THAT KEPT GOING STRAIGHT UP UNTIL IT STALLED AND THEN BEGAN TO FALL HE SAID HE WOULDN'T BE SURPRISED IF THE HONG KONG STOCK MARKET FELL ANOTHER TWENTY FIVE PERCENT NOTING THAT THE BRITISH CHINESE CONFLICT OVER INCREASED DEMOCRACY FOR HONG KONG'S RESIDENTS REMAINS UNRESOLVED MR. DA COSTA GOMEZ SAID THERE IS A DEFINITE RISK FACTOR ASSIGNED TO HONG KONG WHICH DOESN'T JUSTIFY IT TRADING AT CURRENT LEVELS IT NEEDS TO TAKE A BREATHER MONEY MANAGERS AND BROKERS HAD MANY EXPLANATIONS FOR THE PLUNGE ALTHOUGH MOST WERE SHOCKED BY ITS SHARPNESS BETWEEN CHRISTMAS AND THE NEW YEAR THE FLOOD OF MONEY COMING IN FROM JAPANESE INVESTORS TURNED INTO A TORRENT SAID WILLIAM MURRAY HEAD OF SOUTHEAST ASIAN EQUITY SALES AT BARING SECURITIES LIMITED IN LONDON THAT MONEY HE ADDED HELPED DRIVE THE MARKET UP SIX PERCENT AT ONE POINT ON THE FIRST DAY OF TRADING IN NINETEEN NINETY FOUR BUT HE SAID THAT IN THE LAST TWENTY FOUR HOURS IT APPEARS THIS BUYING HAS RUN OUT OF STEAM JAPANESE INVESTORS WEREN'T THE ONLY ONES TO CHANGE THEIR MINDS COMING OFF EARLY NINETEEN NINETY FOUR STRATEGY MEETINGS EUROPEAN FUND MANAGERS DECIDED THE MARKET WAS QUOTE TOO PRICEY FOR COMFORT AND THAT THEY WERE NO LONGER WILLING TO COMMIT NEW MONEY QUOTE SAID MR. MURRAY CONTRIBUTING TO THE CUT AND RUN MOOD WERE JAPAN'S NOMURA SECURITIES COMPANY WHICH REDUCED THE HONG KONG MARKET'S WEIGHTING IN MODEL PORTFOLIOS MERRILL LYNCH AND COMPANY AND MORGAN STANLEY AND COMPANY MADE SIMILAR MOVES LAST FALL MR. MURRAY SAID HONG KONG SHARES WERE ALSO HURT BY UNCONFIRMED ACCOUNTS OF SOCIAL UNREST IN CHINA AND REPORTS SUGGESTING THAT CHINA WAS IMPOSING TAX MEASURES THAT WOULD AFFECT THE INTERESTS OF HONG KONG PROPERTY INVESTORS IN CHINA MR. DA COSTA GOMEZ OF PACIFIC ASSET MANAGEMENT SAID THAT ANOTHER IMPORTANT FACTOR WAS A DECISION BY HONG KONG BANKS THURSDAY TO REDUCE THE AMOUNT THEY WOULD LEND FOR PURCHASERS OF RESIDENTIAL PROPERTY TO SIXTY PERCENT OF THE SALE PRICE FROM SEVENTY PERCENT THE PROPERTY MARKET IS THE MOST IMPORTANT SECTOR IN HONG KONG HE SAID IF THE PROPERTY SECTOR COUGHS THE MARKET AS A WHOLE CATCHES A COLD WHATEVER THE REASONS MS. MANNERS OF HENDERSON SAID IN HONG KONG THERE'S A LEMMING INSTINCT IF THE MARKET'S DUE FOR A CORRECTION AND STARTS FALLING PEOPLE FIND THE EXCUSES TO JUSTIFY THEIR SALES MANY MONEY MANAGERS PREDICTED THAT HONG KONG STOCKS HAVE STILL FURTHER TO FALL WE'VE BEEN CUTTING BACK IN HONG KONG IT ROSE TOO FAR TOO FAST SAID THOMAS TULL A PRINCIPAL AT GULFSTREAM GLOBAL INVESTORS IN DALLAS HE SAID THAT AT CURRENT PRICE LEVELS THE BRITISH COLONY'S SHARES WERE SUSCEPTIBLE TO QUOTE ANY PROBLEM WITH CHINA'S MOST FAVORED NATION TRADING STATUS ANY PROBLEM WITH INFLATION IN CHINA ANY INDICATION THAT CHINESE EXPORTS CAN BE HURT IN ANY WAY THAT WOULD IMPLY A HICCUP EFFECT ON HONG KONG AND PRECIPITATE A DRAG ON PRIVATE CONSUMPTION QUOTE THE MARKET WOULD HAVE TO FALL TO NINE THOUSAND BEFORE WE WOULD BEGIN THINKING ABOUT PUTTING MONEY BACK INTO THE HONG KONG STOCK MARKET SAID MR. TULL MORE SANGUINE THAN OTHERS MR. MURRAY OF BARING SECURITIES PREDICTED THE HANG SENG INDEX COULD FALL TO TEN THOUSAND FIVE HUNDRED AT THAT LEVEL THE HONG KONG STOCK MARKET WOULD BE SELLING AT FOURTEEN POINT FIVE TIMES NINETEEN NINETY FOUR EARNINGS WHICH PUTS IT BACK INTO THE VALUE BRACKETS THAT MOST OF OUR CLIENTS WOULD FEEL MORE COMFORTABLE WITH HE SAID MR. MURRAY SAID HIS FIRM HADN'T CHANGED ITS FORECAST OF FOURTEEN THOUSAND FIVE HUNDRED FOR THE HANG SENG INDEX WHICH WAS MADE EARLY IN DECEMBER WHEN THE INDEX STOOD AT ABOUT NINE THOUSAND THREE HUNDRED THAT WOULD MEAN A TWENTY SEVEN PERCENT RISE ABOVE CURRENT LEVELS LONDON SHARES CHALKED UP STRONG GAINS YESTERDAY FINISHING NEAR THE DAY'S HIGHS ON OPTIMISM ABOUT THE ECONOMY FRANKFURT STOCKS CONTINUED TO CONSOLIDATE THOUGH THE MARKET HAD LITTLE REACTION WHEN THE GERMAN BUNDESBANK THE CENTRAL BANK LEFT ITS KEY INTEREST RATES UNCHANGED TOKYO STOCKS ADVANCED HELPED BY ARBITRAGE BUYING AND CONTINUED STRENGTH FOR EXPORTERS' SHARES PROMPTED BY THE YEN'S WEAKENING AGAINST THE DOLLAR WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED ELEVEN POINT SIX FIVE DOWN ZERO POINT ZERO NINE REFLECTING LOWER ASIA SLASH PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS AIR FREIGHT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED FIFTY POINT FIVE THREE UP TWO POINT SEVEN THREE OR ONE POINT EIGHT FIVE PERCENT WITH PITTSTON SERVICES OF THE U. S. RISING THREE POINT SEVEN PERCENT IN ITS LOCAL CURRENCY CASINO STOCKS TRAILED AT TWO HUNDRED TWENTY SEVEN POINT NINE EIGHT DOWN NINE POINT FIVE OH OR FOUR PERCENT WITH GENTING OF MALAYSIA SLIDING ELEVEN PERCENT IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX ADVANCED TWENTY THREE POINT EIGHT POINTS TO THREE THOUSAND FOUR HUNDRED THREE POINT OH NEAR THE INTRADAY HIGH OF THREE THOUSAND FOUR HUNDRED SEVEN POINT SEVEN THE F. T. THIRTY STOCK INDEX RALLIED THIRTY FOUR POINT THREE POINTS OR ONE POINT FOUR PERCENT TO TWO THOUSAND FIVE HUNDRED EIGHTY POINT FIVE VOLUME WAS ONE POINT OH THREE BILLION SHARES COMPARED WITH NINE HUNDRED EIGHT MILLION SHARES A DAY EARLIER PRICES OPENED SHARPLY LOWER WITH THE F. T. ONE HUNDRED DROPPING TWENTY THREE POINT NINE POINTS TO THE SESSION'S LOW IN REACTION TO THE HONG KONG MARKET'S PLUNGE BUT LONDON'S DESCENT WAS QUICKLY REVERSED FOLLOWING A RECOVERY IN THE STOCK INDEX FUTURES MARKET AND HEALTHY BUYING BY BRITISH AND FOREIGN INSTITUTIONAL INVESTORS THE MARKET ALSO GATHERED STRENGTH FROM OPTIMISM ABOUT FURTHER CUTS IN BRITISH BASE LENDING RATES A RESILIENT EARLY PERFORMANCE ON WALL STREET AFTER U. S. BOND MARKET DECLINES AND SPECULATION ABOUT BRITISH INSURANCE SECTOR TAKEOVERS IN FRANKFURT THOUGH GERMANY'S RATE MAINTENANCE HAD LITTLE EFFECT THE D. A. X. THIRTY SHARE INDEX DROPPED THIRTEEN POINT ONE NINE POINTS TO TWO THOUSAND TWO HUNDRED TWENTY POINT TWO TWO AFTER LOSING TWENTY POINTS A DAY EARLIER THIS WEEK'S LOSS IS TWO POINT ONE PERCENT THE MARKET DECLINED ON PROFIT TAKING LINKED TO EXPECTATIONS OF FURTHER PRICE DROPS IN PARIS SHARES CLIMBED ONE POINT ONE PERCENT AS TRADERS SHRUGGED OFF THE BUNDESBANK'S DECISION ON RATES AND INSTITUTIONAL INVESTORS LED A RALLY THE GAINS WERE HELPED BY A POSITIVE U. S. REPORT ON EMPLOYMENT FOLLOWING TWO DAYS OF PROFIT TAKING BARGAIN HUNTERS MOVED IN AMID HOPES FOR LOWER EUROPEAN INTEREST RATES INDEED THE BELGIAN AND DANISH CENTRAL BANKS CUT KEY RATES YESTERDAY IN BRUSSELS STOCKS ROSE TO ANOTHER RECORD THE BELGIAN CENTRAL BANK'S MONEY MARKET RATE CUT CAME AFTER TRADING ENDED BUT HAD BEEN WIDELY ANTICIPATED BY THE BOND AND EQUITIES MARKETS HELPING TO BOOST MOST ISSUES IN ZURICH SHARES ROSE IN ACTIVE TRADING FOCUSED ON BANKING CHEMICAL AND FOOD ISSUES FOREIGN INVESTORS ESPECIALLY FROM GERMANY SNAPPED UP SHARES AND WERE JOINED BY SWISS INSTITUTIONAL INVESTORS BROADENING THE GAINS IN MEXICO CITY THE I. P. C. INDEX CLIMBED ONE PERCENT TO YET ANOTHER RECORD LED BY FOREIGN BUYERS THE MARKET WAS ENCOURAGED WHEN A PEASANT UPRISING TURNED DORMANT WHICH COULD SPUR GOVERNMENT SPENDING IN POOR AREAS PRIOR TO THE AUGUST PRESIDENTIAL ELECTIONS BOOSTING THE ECONOMY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH JUMPED FOUR HUNDRED THIRTEEN POINT SEVEN FOUR POINTS WEDNESDAY ROSE NINETY EIGHT POINT FIVE ONE TO SEVENTEEN THOUSAND EIGHT HUNDRED EIGHTY ONE POINT NINE NINE ON FRIDAY THE NIKKEI INDEX ROSE SIXTY TWO POINT FOUR OH POINTS TO CLOSE THE MORNING SESSION AT SEVENTEEN THOUSAND NINE HUNDRED FORTY FOUR POINT THREE NINE THURSDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT THREE HUNDRED FIFTY MILLION SHARES UP FROM TWO HUNDRED NINETY POINT SIX MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS SIX HUNDRED TWENTY SIX TO FOUR HUNDRED TWENTY TWO THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH GAINED SIXTEEN POINT EIGHT EIGHT POINTS WEDNESDAY ROSE SIX POINT FOUR TWO TO ONE THOUSAND FOUR HUNDRED SIXTY NINE POINT TWO SEVEN THE NIKKEI COULDN'T OVERCOME SELLING PRESSURE ABOVE EIGHTEEN THOUSAND WHICH IT TOPPED FOR THE FIRST TIME SINCE DECEMBER TWENTIETH AND EXPORTER ISSUES WERE KNOCKED BACK ON LATE PROFIT TAKING AFTER THE DOLLAR RETREATED IN CURRENCY DEALINGS IN SYDNEY AFTER LANGUISHING IN THE RED FOR MUCH OF THE SESSION SHARE PRICES EDGED UP TO ANOTHER SIX YEAR HIGH FOLLOWING A RALLY IN THE STOCK INDEX MARCH FUTURES CONTRACT OVERSEAS BUYERS CONTINUED TO CONTRIBUTE TO THE MARKET'S RISE IN SINGAPORE STOCKS SANK ONE POINT EIGHT PERCENT AFTER DROPPING ONE POINT SIX PERCENT WEDNESDAY BLUE CHIPS AND FOREIGN HELD SHARES LED LOSERS WITH SOME ISSUES GIVING UP MORE THAN TEN PERCENT ON SOME PANIC SELLING AMID CONCERNS ABOUT ANY GOVERNMENT REACTION TO AN OVERHEATED MARKET THE BROAD DECLINE WAS BLAMED ON DROPS IN MALAYSIAN STOCKS IN KUALA LUMPUR STOCKS PLUNGED FIVE PERCENT ON PROFIT TAKING AFTER A RECENT RALLY IN MANILA EQUITIES JUMPED ONE POINT NINE PERCENT HELPED BY BARGAIN HUNTING AFTER THE MARKET'S TWO POINT THREE PERCENT SKID A DAY EARLIER IN BANGKOK STOCKS SLUMPED TWO POINT FOUR PERCENT IN ACTIVE CHOPPY TRADING MARKING THE SECOND CONSECUTIVE DROP FOLLOWING A STREAK OF EIGHT RECORD HIGHS IN A ROW THAT ENDED TUESDAY 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 REVIVING ECONOMY DICTATED THE FOURTH QUARTER BOND MARKET RANKINGS THE FIRST QUARTER PROMISES MORE OF THE SAME HIGH YIELD JUNK BOND FUNDS ARE LIKELY TO OUTPERFORM MOST OTHER BOND SECTORS ONCE AGAIN THIS QUARTER BUT PROBABLY WITH LOWER TOTAL RETURNS THAN IN THE RECENT PAST RETURNS MAY REMAIN UNDER PRESSURE FOR LONG TERM U. S. TREASURY BONDS ANALYSTS HAVE HIGH HOPES FOR BONDS FROM FOREIGN NATIONS ESPECIALLY DEVELOPING NATIONS A PARTICULARLY RISKY BUT REWARDING SECTOR SO FAR QUOTE THERE WILL BE A GREAT EQUALIZATION OF TOTAL RETURNS IN NINETEEN NINETY FOUR QUOTE SAYS IAN A. MACKINNON HEAD OF FIXED INCOME INVESTING AT VANGUARD GROUP JUNK BOND FUNDS WHICH BOOKED RETURNS OF FOUR POINT SEVEN FIVE PERCENT IN THE FOURTH QUARTER ACCORDING TO PRELIMINARY DATA FROM LIPPER ANALYTICAL SERVICES INCORPORATED ARE LIKELY TO DO WELL AGAIN BECAUSE THEY BEHAVE A LOT LIKE STOCKS THEY WILL BENEFIT FROM IMPROVEMENT IN THE ECONOMY SAYS MR. MACKINNON IT WILL SPELL GENERALIZED RELIEF FOR HIGH YIELD CREDITS ALTHOUGH SOME MAY STUMBLE HE ADDS HE LIKES JUNK BONDS FROM INDUSTRIAL BANKING OR OTHER FINANCIAL CONCERNS EVEN IF INTEREST RATES RISE MODERATELY THIS YEAR JUNK BONDS WOULD STILL BE A GOOD BET SAYS MR. MACKINNON THAT'S BECAUSE THE HIGH YIELD SECTOR CONSISTS MAINLY OF INTERMEDIATE TERM BONDS AND WILL HAVE SOME PROTECTION AGAINST MODERATELY RISING RATES MR. MACKINNON SAYS THAT THE ENVIRONMENT WILL BE GOOD FOR FUND MANAGERS INTERESTED IN BOOSTING THEIR RETURNS BY BUYING LOWER GRADE CORPORATE JUNK THE JUNK BOND MARKET WILL CONTINUE TO BE ATTRACTIVE SAYS GARY COBURN HEAD OF FIXED INCOME INVESTMENTS AT PUTNAM INVESTMENTS BUT YOU PROBABLY WON'T SEE THE DOUBLE DIGIT RETURNS THAT YOU DID IN NINETEEN NINETY THREE JUNK BOND FUNDS HAD TOTAL RETURNS OF NINETEEN POINT FIVE OH PERCENT IN NINETEEN NINETY THREE ACCORDING TO LIPPER TOTAL RETURNS COMBINE THE EFFECT OF PRICE CHANGES AND INCOME THERE'S NO SIGN OF RECESSION AND THAT'S TYPICALLY THE TIME WHEN HIGH YIELD BONDS UNDERPERFORM SAYS DON KELLER A SENIOR PORTFOLIO MANAGER AT KEYSTONE CUSTODIAN FUNDS INCORPORATED A UNIT OF KEYSTONE GROUP INCORPORATED IF YOU SEE JUNK BOND FUNDS PROMISING TO MATCH LAST YEAR'S TOTAL RETURNS BE LEERY THE EASIEST WAY TO DO IT SAY THE EXPERTS IS BY LOADING UP ON RISKIER BONDS FOR INVESTORS IN FUNDS SPECIALIZING IN LONG TERM SECURITIES ESPECIALLY TREASURYS THE FOURTH QUARTER MAY BE A HARBINGER OVER THE WHOLE YEAR FUNDS SPECIALIZING IN LONG TERM U. S. TREASURYS AND ZERO COUPON BONDS WHICH PAY NO INTEREST DID VERY WELL WITH RETURNS OF THIRTEEN POINT THREE THREE PERCENT AND TWENTY POINT SEVEN SIX PERCENT RESPECTIVELY BUT IN THE FOURTH QUARTER THEY LOST ONE POINT TWO THREE PERCENT AND ONE POINT OH SEVEN PERCENT RESPECTIVELY THE DAYS OF BIG RETURNS IN TREASURYS QUOTE ARE CLEARLY BEHIND US QUOTE SAYS MR. COBURN OF PUTNAM INVESTORS SHOULD BE BUILDING EXPECTATIONS FOR SINGLE DIGIT RETURNS IN THE TREASURY MARKET HE SAYS PERHAPS EVEN LESS THAN THE GIVEN COUPONS FOR SOME SHORT TERM SECURITIES LOW RETURNS OR EVEN LOSSES ARE LIKELY THIS QUARTER FOR FUNDS SPECIALIZING IN SHORTER TERM TREASURYS SAY FUND MANAGERS THAT'S BECAUSE THEY BELIEVE ALL INTEREST RATES WILL RISE THIS YEAR BUT SHORT TERM RATES WILL BE RISING FASTER THAN LONG TERM BOND YIELDS NOTE PRICES FALL WHENEVER RATES RISE ERODING INVESTORS' TOTAL RETURN WE EXPECT A RISE IN RATES WITH THE THIRTY YEAR BOND YIELD ENDING ABOUT ONE HALF PERCENTAGE POINT FROM WHERE WE ARE NOW OR ABOUT SIX POINT EIGHT FIVE PERCENT SAYS MR. MACKINNON OF VANGUARD SHORT TERM RATES COULD RISE AS MUCH AS A FULL PERCENTAGE POINT HE SAYS WHICH WOULD PUT THE THREE MONTH TREASURY BILL'S COUPON EQUIVALENT YIELD AT ABOUT FOUR POINT ONE FOUR PERCENT A STRONGER ECONOMY AND MODERATE RATE INCREASES MAY MEAN LOWER RETURNS FOR MANY BOND FUNDS BUT NOT NECESSARILY NEGATIVE RETURNS THAT'S BECAUSE INFLATION THE BANE OF BOND INVESTORS IS LIKELY TO REMAIN SUBDUED BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE BUYING POWER OF A FIXED RATE OF RETURN THE BIG CAVEAT IS INFLATION SAYS MR. COBURN OF PUTNAM IT WILL BE PRETTY WELL SUBDUED IN NINETEEN NINETY FOUR AND THAT WILL PROVIDE A BIT OF A CUSHION TO BOND INVESTMENTS WITH LONG MATURITIES IF YOU WANT TO EVEN COME CLOSE TO NINETEEN NINETY THREE'S RETURNS YOU MUST BE WILLING TO TAKE ON GREATER RISKS ANALYSTS SAY THE BEST PLACE FOR THAT SAY THE MANAGERS ARE FUNDS THAT SPECIALIZE IN FOREIGN SECURITIES GLOBAL BOND FUNDS HAD TOTAL RETURNS OF THREE POINT SIX SIX PERCENT IN THE FOURTH QUARTER JUST BEHIND JUNK BOND FUNDS AND TOTAL RETURNS OF SEVENTEEN POINT SIX ONE PERCENT OVER THE WHOLE YEAR FOR FUNDS SPECIALIZING IN BONDS OF INDUSTRIALIZED NATIONS RETURNS ARE LIKELY TO BE LOWER BUT STILL IN THE HIGH SINGLE DIGITS SAY FUND MANAGERS FOR FUNDS SPECIALIZING IN BONDS OF DEVELOPING NATIONS RETURNS COULD BE EVEN GREATER ESPECIALLY POPULAR AMONG FUND MANAGERS ARE MEXICO ARGENTINA AND VENEZUELA BUT THE RISKS ARE LARGE CURRENCY SHIFTS CAN WIPE OUT ALL RETURNS EVEN WHEN A MARKET DOES WELL AND THERE ARE POLITICAL RISKS SO FAR THE REBELLION IN SOUTHERN MEXICO HASN'T MADE MUCH OF A DENT IN THAT NATION'S BOND MARKETS BUT WHO KNOWS WHAT OTHER SURPRISES LURK IT'S CLEARLY AN ATTRACTIVE AREA BUT NOT FOR WIDOWS AND ORPHANS SAYS MR. COBURN TWO OTHER GOOD SECTORS TO BET ON ANALYSTS SAY ARE MUNICIPAL BOND FUNDS AND MORTAGE BACKED BOND FUNDS TAX EXEMPT MUNICIPAL BONDS HAVE BECOME THE POSTER CHILD OF THE BOND MARKET THESE DAYS AS MANAGERS EXTOL THE ADVANTAGES OF MINIMIZING DAMAGE FROM HIGHER TAX RATES BUT THERE IS SOME TRUTH TO ALL THE HYPE FOR ONE THING THERE WILL BE FEWER MUNICIPAL BONDS SOLD THIS YEAR SAY FUND MANAGERS SO IF SUPPLY DROPS AND DEMAND RISES THEY THEORIZE RETURNS WILL BE SMASHING QUOTE PEOPLE WILL START LOOKING AT WHERE THEIR TAX WITHHOLDING IS AND FINDING MORE REASONS FOR OWNING MORE MUNICIPAL BONDS QUOTE SAYS MR. MACKINNON ONCE AGAIN FUND MANAGERS SAY THE WORST IS OVER WITH MORTGAGE BACKED BOND FUNDS AT LEAST TWO TIMES IN THE PAST TWO YEARS THE SAGES OF WALL STREET BEGAN PUSHING MORTGAGE BACKED SECURITIES BY CLAIMING THAT INTEREST RATES HAD BOTTOMED THEY WERE WRONG BOTH TIMES FUNDS SPECIALIZING IN GOVERNMENT NATIONAL MORTGAGE ASSOCIATION BONDS WERE PUMMELED IN THE FOURTH QUARTER AND POSTED TOTAL RETURNS OF JUST ZERO POINT THREE SIX PERCENT WHILE THEY HAD TOTAL RETURNS OF SIX POINT FOUR FOUR PERCENT FOR THE ENTIRE YEAR DESPITE THE RELATIVELY LOW RETURNS LAST YEAR AND BEING BURNED TWICE ALREADY FUND MANAGERS SAY IT MIGHT BE TIME TO CONSIDER MORTGAGES AGAIN WITH INTEREST RATES RISING A BIT THE LOGIC GOES FEWER HOMEOWNERS WILL BE REFINANCING THEIR MORTGAGES THIS IS GOOD NEWS FOR THE FUNDS THAT INVEST IN SECURITIES BACKED BY THE MORTGAGES BUT NOT EVERYONE IS EBULLIENT THERE MAY BE RELIEF FOR THE MORTGAGE SECTOR THIS YEAR SAYS MR. MACKINNON BUT I'M NOT SAYING THAT TODAY YOU SHOULD GO OUT AND BUY LOTS OF MORTGAGE SECURITIES ACCORDING TO MR. MACKINNON THE WORST OF MORTGAGE REFINANCING IS EITHER NEARLY UPON US OR PAST US BONDHOLDERS OF R. H. MACY AND COMPANY COULD END UP ON THE LOSING END OF THE RETAILER'S REORGANIZATION IF SENIOR CREDITORS ATTEMPT A QUOTE CRAM DOWN QUOTE A CRAM DOWN IS AN OFTEN THREATENED BUT LITTLE USED MANEUVER IN BANKRUPTCY WORKOUTS SO CALLED BECAUSE IT CRAMS AN UNPALATABLE REORGANIZATION PLAN DOWN THE THROATS OF CREDITORS WITH THE LEAST AMOUNT OF CLOUT IN THIS CASE THE BONDHOLDERS WHO ARE THE MOST JUNIOR AMONG THE CREDITORS PRESSING CLAIMS ON MACY MACY HAS BEEN MIRED IN CHAPTER ELEVEN BANKRUPTCY COURT PROCEEDINGS SINCE JANUARY NINETEEN NINETY TWO MACY'S MANAGEMENT HAS THE EXCLUSIVE RIGHT TO PUT FORTH A PLAN OF REORGANIZATION BUT RIVAL FEDERATED DEPARTMENT STORES INCORPORATED IS NOW A CREDITOR AND SAYS IT WANTS TO MERGE THE TWO COMPANIES MACY'S CREDITORS INCLUDING THE BANKS THAT HOLD SENIOR DEBT SECURED BY THE RETAILER'S STORES AND TRADEMARKS AND INVESTORS WHO OWN MACY'S UNSECURED BONDS MUST APPROVE ANY PLAN OF REORGANIZATION BEFORE THE COMPANY CAN EMERGE FROM BANKRUPTCY COURT CREDITORS' CLAIMS TOTAL ABOUT FOUR POINT THREE BILLION DOLLARS EXCLUDING INTEREST ORDINARILY WHEN A COMPANY EMERGES FROM BANKRUPTCY COURT SENIOR CREDITORS' CLAIMS ARE PAID OFF AT FACE VALUE PLUS ACCRUED INTEREST JUNIOR CREDITORS MEANWHILE GET THE BULK OF THE STOCK DISTRIBUTED BY THE REORGANIZED COMPANY WHICH EFFECTIVELY MAKES THEM THE CONTROLLING SHAREHOLDERS JUNIOR CREDITORS IN MACY'S CASE ARE INVESTORS IN ITS PUBLICLY TRADED BONDS WITH A FACE VALUE OF ONE POINT THREE BILLION DOLLARS BUT THE SENIOR CREDITORS' GRIP ON THE COMPANY COULD PROVE SO TIGHT THAT LITTLE VALUE SEEPS THROUGH TO MACY'S BONDHOLDERS THE REASON HOLDERS OF MACY'S SENIOR BANK DEBT HAVE A TRUMP CARD TO PLAY BECAUSE OF SEVERAL OVERLOOKED FACETS OF THEIR CLAIMS THE RIGHTS OF THESE BANK DEBT HOLDERS ARE DEFINED BY COVENANTS ARCANE TECHNICAL LANGUAGE BURIED DEEP IN REAMS OF MACY'S FINANCIAL DOCUMENTS DATING BACK AS FAR AS NINETEEN EIGHTY SIX WHEN THE COMPANY WAS TAKEN PRIVATE IN A LEVERAGED BUYOUT THOSE COVENANTS SPECIFY THAT MACY'S BANK CREDITORS WHO ARE OWED ABOUT ONE POINT FOUR BILLION DOLLARS MUST BE PAID ALL INTEREST DUE ON THEIR CLAIMS SINCE THE JANUARY NINETEEN NINETY TWO BANKRUPTCY LAW FILING BEFORE BONDHOLDERS RECEIVE A PENNY MOREOVER THE BANK CREDITORS ACTUALLY CONTROL A SIGNIFICANT PORTION OF MACY BONDS THAT'S BECAUSE WHEN SOME OF THE CURRENT MACY SHAREHOLDERS PUT MONEY INTO THE COMPANY IN NINETEEN NINETY ONE TO ALLOW IT TO BUY BACK ABOUT FOUR HUNDRED TWENTY MILLION DOLLARS OF ITS BONDS THOSE BONDS BECAME PART OF THE COLLATERAL BACKING THE BANK DEBT HOLDERS' CLAIMS THE BANK CREDITORS ARE STRENGTHENED BY THE LANGUAGE IN THE INDENTURE AND BY THEIR COLLATERAL POSITION NOTED ISAAC PACHULSKI A BANKRUPTCY SPECIALIST WITH STUTMAN TREISTER AND GLATT A LOS ANGELES LAW FIRM SENIOR CREDITORS COULD USE THESE POWERS TO FORCE THROUGH A PLAN OF REORGANIZATION THAT FAVORS THEM IN EFFECT LEAVING THE BONDHOLDERS WITH LITTLE OR NOTHING IN PRACTICAL TERMS THAT MEANS INVESTORS WHO HAVE PAID AS MUCH AS FIFTY ONE CENTS ON THE DOLLAR FOR MACY SENIOR BONDS MAY FACE STEEP LOSSES FOR HOLDERS OF MACY SUBORDINATED BONDS AND ZERO COUPON BONDS THE PICTURE LOOKS EVEN GRIMMER THESE BONDS HAD SOARED IN PRICE AFTER FEDERATED ANNOUNCED THAT IT HAD BOUGHT HALF OF A ONE BILLION DOLLAR POOL OF MACY'S MORTGAGES FROM PRUDENTIAL INSURANCE COMPANY OF AMERICA ON HOPES THAT THE RETAILER'S PRESENCE WOULD SPARK A BIDDING WAR THE LIKELIHOOD OF DISAPPOINTMENT LOOMS ESPECIALLY LARGE IF MACY IS UNABLE TO IMPROVE ITS OPERATING PERFORMANCE INVESTORS HAVE ALREADY PUSHED UP THE PRICE OF MACY BONDS SO HIGH THAT THE COMPANY'S MARKET VALUE IS ABOUT THREE BILLION DOLLARS OR A HEADY THIRTEEN TIMES CASH FLOW FOR THE YEAR ENDED IN AUGUST EVEN AT THESE ELEVATED VALUES CLAIMS OF SENIOR CREDITORS LEAVE LITTLE ON THE TABLE FOR ANYONE ELSE THAT'S BECAUSE BY DECEMBER THE EARLIEST THAT MACY IS LIKELY TO EMERGE FROM BANKRUPTCY COURT SENIOR CREDITORS' CLAIMS WOULD EXCEED THREE BILLION DOLLARS INCLUDING TWO POINT SIX BILLION DOLLARS CURRENTLY OWED AND AN ADDITIONAL SIX HUNDRED MILLION DOLLARS OR SO IN INTEREST THAT WOULD BE DUE THESE CREDITORS INCLUDE FEDERAL AND LOCAL TAX COLLECTORS AS WELL AS FEDERATED AND FIDELITY INVESTMENTS MACY'S SECOND LARGEST CREDITOR WITH A FOUR HUNDRED NINETY MILLION DOLLAR HOLDING OF BANK DEBT DAVID G. HEIMAN A BANKRUPTCY LAWYER AT CLEVELAND BASED JONES DAY REAVIS AND POGUE WHICH IS REPRESENTING FEDERATED SAID HE PREFERRED NOT TO COMMENT ON THE POSSIBILITY OF A CRAM DOWN SEPARATELY DANIEL HARMETZ THE FIDELITY INVESTMENTS FUND MANAGER WHO HAS BEEN COURTING RIVAL BIDDERS IN HOPES OF PERSUADING THEM TO TRY TO TAKE CONTROL OF MACY TALKED WITH MANAGEMENT OF DILLARD DEPARTMENT STORES INCORPORATED YESTERDAY TO BROACH THE TOPIC OF A FIDELITY DILLARD BID FOR MACY MR. HARMETZ CALLED THE DISCUSSION NONEVENTFUL AND SAID IT WAS BRIEF TO SAY THE LEAST DILLARD DID NOT RETURN PHONE CALLS REQUESTING COMMENT FIDELITY INVESTMENTS ANNOUNCED THAT MR. HARMETZ WHO HAD BEEN CO HEAD OF FIDELITY'S CAPITAL AND INCOME FUND CEDED MANAGEMENT OF THAT MUTUAL FUND TO HIS CO MANAGER DAVID BREAZZANO EFFECTIVE JANUARY FOURTEENTH MR. HARMETZ WILL FOCUS ON FIDELITY'S PRIVATE BANKRUPTCY FUNDS BUT WILL CONTINUE TO BE RESPONSIBLE FOR FIDELITY'S MACY HOLDING IN RESPONSE TO ARTHUR SCHLESINGER'S DECEMBER TWENTY SEVENTH EDITORIAL PAGE ESSAY QUOTE FASCISM'S LENGTHENING SHADOW QUOTE IT SEEMS STRANGE FOR ARTHUR SCHLESINGER TO ATTRIBUTE THE PROBLEMS IN RUSSIA TO CAPITALISM GIVEN THAT ONLY FIVE PERCENT OF THE CAPITAL STOCK IS IN PRIVATE HANDS THERE ARE NO LAWS TO PROTECT PRIVATE PROPERTY THE CENTRAL BANK CONTINUES TO PRINT RUBLES LIKE MAD AND FORMER COMMUNISTS AND THEIR SUPPORTERS STILL DOMINATE RUSSIAN POLITICS MORE THAN EIGHTY PERCENT OF THOSE EMPLOYED IN RUSSIA WORK IN THE PUBLIC SECTOR AND TAXES AS A PERCENTAGE OF G. D. P. ARE TWICE AS HIGH AS THOSE IN THE U. S. RUSSIA'S ECONOMY IS ALMOST AS SOCIALIST NOW AS IT WAS UNDER MIKHAIL GORBACHEV IT IS EQUALLY ABSURD FOR MR. SCHLESINGER TO HOLD UP THE NEW DEAL AS A SOLUTION TO RUSSIA'S PROBLEMS WHEN DESCRIBING RUSSIA'S INCREASING GAP BETWEEN THE RICH AND POOR ITS CORRUPTION CRIME MISERY RESENTMENT ET CETERA ONE WOULD HAVE THOUGHT THAT MR. SCHLESINGER WAS CHARACTERIZING HIS OWN NEW YORK CITY OR ANY OTHER MAJOR URBAN AREA IN THE U. S. POVERTY MISERY AND CRIME HAVE PERSISTED IN THE U. S. DESPITE NEW DEAL TYPE PROGRAMS IN FACT SOME WOULD MAINTAIN THAT THE INCREASE IN THESE PROBLEMS CAN BE LINKED TO SUCH GOVERNMENT SOLUTIONS HAVING SPENT TIME IN EASTERN EUROPE IT IS OBVIOUS TO ME THAT MANY OF THE PROBLEMS THERE AS IN THE U. S. RESULT FROM A LACK OF CAPITALISM CAPITALISM REQUIRES A PRIVATE CAPITAL STOCK WHICH RUSSIA DOES NOT HAVE IT REQUIRES LAWS PROTECTING PRIVATE PROPERTY UNHEARD OF IN RUSSIA IT FUNCTIONS BEST WITH A STABLE CURRENCY SATURATING RUSSIA WITH RUBLES IS NOT CAPITALISM INSTITUTE THESE REFORMS AND RUSSIA AND ITS PEOPLE WILL BEGIN TO THRIVE AS IT IS MOST OF EUROPE RUSSIA AND THE U. S. ARE ALREADY FOLLOWING MR. SCHLESINGER'S ADVICE SO CAPITALISM CANNOT BE BLAMED FOR THE ENSUING CHAOS MR. SCHLESINGER ARGUES THAT THE WEST IS PARTIALLY TO BLAME FOR THE RISE OF FASCISM IN RUSSIA BECAUSE IT HAS SUPPORTED ECONOMIC POLICIES LAISSEZ FAIRE CAPITALISM THAT HAVE LED TO SUCH ECONOMIC DETERIORATION THAT RUSSIANS HAVE TURNED TO EXTREMISM IN THE FORM OF FASCISM AS A RESPONSE THIS ARGUMENT IS FLAWED FIRST FASCIST BEHAVIOR IS NOT A NEW PHENOMENON IN RUSSIA UNDER THE CZARS IT HAD FASCIST LIKE REGIMES FOR HUNDREDS OF YEARS SECOND THE CAUSE OF RUSSIA'S ECONOMIC DECLINE HAS BEEN YEARS OF SOCIALISTIC ECONOMIC POLICIES RUSSIA IN NO WAY RESEMBLES A CAPITALISTIC FREE MARKET ECONOMY LEGITIMATE FREE MARKET REFORMS HAVE YET TO BE IMPLEMENTED CLEARLY THE RUSSIAN ECONOMY IS GOING THROUGH A TRANSITION WHAT IT IS IN TRANSITION TO IS NOT CLEAR WHAT IS CLEAR IS THAT ANY ECONOMIC TRANSFORMATION WILL TAKE TIME AND NOT BE COSTLESS BUT HISTORY HAS SHOWN THAT COUNTRIES THAT HAVE ADAPTED FRIEDMANESQUE FREE MARKET POLICIES HAVE DRAMATICALLY INCREASED THEIR STANDARD OF LIVING WHILE ADDING TO SOCIAL STABILITY THE LIBERTE EGALITE FRATERNITE FOR WHICH PROFESSOR SCHLESINGER YEARNS IS SIMPLY AN EARLIER EXAMPLE OF THE COLLECTIVES' PRIORITY OVER THE INDIVIDUAL LET US EXAMINE ROUSSEAU'S OWN WORDS FROM HIS DISCOURSE ON POLITICAL ECONOMY EACH OF US PUTS HIS PERSON AND ALL HIS POWER IN COMMON UNDER THE SUPREME DIRECTION OF THE GENERAL WILL AND IN OUR CORPORATE CAPACITY WE RECEIVE EACH INDIVIDUAL MEMBER AS AN INDIVISIBLE PART OF THE WHOLE IS THIS WHAT THE PROFESSOR MEANS BY LIBERAL DEMOCRACY IF SO HOW DOES HE DIFFERENTIATE THIS FORM OF COLLECTIVE FROM OTHERS SUCH AS THE COMMUNISM AND FASCISM HE CLAIMS TO HATE PROFESSOR SCHLESINGER HAS NEVER DISGUISED HIS DISDAIN FOR THE LAISSEZ FAIRE MARKET AND ITS ALLEGED TRANSGRESSIONS WHERE DOES HE BELIEVE IT EVER EXISTED NO STUDENT OF ECONOMIC HISTORY CAN IDENTIFY ANY PLACE IN ANY PERIOD WITH A TOTALLY FREE MARKET GOVERNMENT IN WHATEVER FORM HAS ALWAYS INTERVENED TO FAVOR ONE GROUP OVER ANOTHER VOLUNTARY EXCHANGE IS THE MOST JUST AND CIVILIZED SYSTEM OF GOODS AND SERVICES TRANSFER EVER EVOLVED AT THE INDIVIDUAL LEVEL IT IS EXCRUCIATINGLY SIMPLE VIEWED FROM THE AUGUST POSITION OF PROFESSOR SCHLESINGER AND HIS FELLOWS IT IS SO COMPLEX THEIR GUIDANCE IS NEEDED PERHAPS HE SHOULD FINALLY BREAK OPEN HIS UNIVERSITY COCOON AND COME JOIN THOSE OF US WHO MUST SATISFY THE VOLUNTARY MARKET EACH DAY PROFESSOR SCHLESINGER PREMATURELY BEMOANS THE SUCCESS OF FREE MARKET PHILOSOPHY WHICH HE SAYS QUOTE HAS GIVEN RUSSIA A STRONG DOSE OF FREEBOOTING EXPLOITATIVE HARDHEARTED NINETEENTH CENTURY CAPITALISM QUOTE PATIENCE PROFESSOR A COUNTRY CANNOT ENJOY A RESPONSIBLE JUST COMPASSIONATE TWENTIETH CENTURY MIXED UP ECONOMY UNLESS THERE ARE FIRST ENOUGH RICH PEOPLE TO SOAK WEALTH TO BE CONFISCATED MUST FIRST BE PRODUCED MOODY'S INVESTORS SERVICE INCORPORATED SAID IT PLACED ABOUT FOUR POINT FIVE BILLION DOLLARS OF TRIPLE A RATED LONGTERM DEBT FOR CERTAIN OF THIS ENERGY COMPANY'S SUBSIDIARIES UNDER REVIEW FOR POTENTIAL DOWNGRADE AMONG THE DEBT ISSUES BEING REVIEWED ARE AMOCO COMPANY'S GUARANTEED DEBENTURES NOTES AND EURONOTES AND AMOCO CANADA PETROLEUM COMPANY LIMITED'S GUARANTEED NOTES AND EURONOTES THE RATINGS CONCERN CITED PROBLEMS QUOTE ASSOCIATED WITH REVERSING THE NEGATIVE TRENDS QUOTE IN AMOCO'S FINANCIAL RETURNS CASH FLOW PROTECTION MEASURES AND PETROLEUM RESERVES EQUITABLE BAG COMPANY LONG ISLAND CITY N. Y. MOODY'S INVESTORS SERVICE INCORPORATED DOWNGRADED THIS BAG MAKER'S SENIOR NOTES TO C. A. A. FROM SINGLE B. TWO ABOUT ONE HUNDRED FIVE MILLION DOLLARS IN DEBT WAS AFFECTED THE RATINGS AGENCY CITED CONTINUED OPERATING DIFFICULTIES A HIGH DEBT BURDEN AND NONCOMPLIANCE WITH A DEBT COVENANT IN ADDITION EQUITABLE HAS SHOWN DECLINING SALES IN THE PAST NINE MONTHS AND ITS OPERATING PROFIT IS BEING OVERWHELMED BY HIGH DEBT SERVICING COSTS MOODY'S SAID MOODY'S ADDED THAT WITHOUT A SIGNIFICANT OR SUCCESSFUL PENETRATION OF NEW MARKET SEGMENTS SERVICING EQUITABLE'S FINANCIAL OBLIGATIONS WILL BE A DIFFICULT TASK THE COMPANY COULD NOT BE REACHED TO COMMENT ON THE DOWNGRADE MITCHELL ENERGY AND DEVELOPMENT CORPORATION MOODY'S INVESTORS SERVICE INCORPORATED RAISED ITS RATINGS ON ABOUT FIVE HUNDRED FIFTY MILLION DOLLARS OF DEBT ISSUED BY THIS OIL NATURAL GAS AND REAL ESTATE DEVELOPMENT COMPANY BASED IN THE WOODLANDS TEXAS THE RATING SERVICE RAISED MITCHELL'S SENIOR UNSECURED DEBT TO B. A A THREE FROM B. A ONE MOODY'S SAID MITCHELL'S RATED DEBT IS ISSUED BY THE PARENT COMPANY RATHER THAN THE ENERGY SUBSIDIARY WHICH IS ITS MAIN SOURCE OF CASH TO SUPPORT BONDS THUS THERE HAD BEEN SOME CONCERN ABOUT THE FINANCIAL IMPLICATIONS OF A LONG RUMORED SPINOFF MOODY'S SAID THE SERVICE ADDED THAT MITCHELL HAS STATED IT WILL IMPLEMENT ENHANCED BONDHOLDER PROTECTION PROVISIONS REGARDING THE COMPANY'S ABILITY TO PAY A DIVIDEND OR DISTRIBUTE ITS ENERGY ASSETS WITHOUT RESTRICTING THE DISTRIBUTION OF ITS REAL ESTATE ASSETS THERE'S A NEW HUNK IN TOWN HE'S GOT PALE SKIN THINNING RED HAIR AND A PHYSIQUE THAT'S SLOUCHING TOWARD MIDDLE AGE HE'S DAVID CARUSO THE STAR OF A. B. C.'S CONTROVERSIAL POLICE SERIES QUOTE NYPD BLUE QUOTE MR. CARUSO EMPHATICALLY DOES NOT HAVE LEADING MAN LOOKS BUT AS JOHN KELLY AN IRISH AMERICAN POLICE DETECTIVE WITH ROUGH EDGES AND A GENTLE SOUL HE HAS ATTRACTED THE INTEREST OF MANY WOMEN WOMEN ARE THE PRIMARY AUDIENCE FOR PRIME TIME PROGRAMS SO THEIR REACTION TO TELEVISION CHARACTERS IS CRUCIAL TO THE SUCCESS OF A SHOW FOR WOMEN AGED EIGHTEEN TO FORTY NINE NYPD BLUE IS THE THIRTEENTH RATED PRIME TIME PROGRAM THE FIRST IS HOME IMPROVEMENT VERY HIGH FOR A POLICE SHOW WHICH TRADITIONALLY DRAWS MALE VIEWERS DAVID MILCH WHO ALONG WITH STEVEN BOCHCO PRODUCES NYPD BLUE SAYS WOMEN ARE DRAWN TO THE SHOW BY THE COMPLEX DRAMATIC CHARACTERS PARTICULARLY KELLY JOHN KELLY IS THE LATEST INCARNATION IN WHAT LYNN SPIGEL AN ASSOCIATE PROFESSOR OF CINEMA AND TELEVISION CALLS T. V.'S NEW MASCULINITY THE ERA CAN BE TRACED TO THE MID EIGHTIES WHEN THE MOVIE THREE MEN AND A BABY AND THE POPULAR TELEVISION SERIES THIRTYSOMETHING BEGAN PORTRAYING MEN WHO HAVE MACHO SEXUALITY BUT WHO ALSO EXPRESS EMOTION AND DO HOUSEWORK OTHER EXAMPLES TODAY SAYS DOCTOR SPIGEL WHO TEACHES AT THE UNIVERSITY OF SOUTHERN CALIFORNIA'S SCHOOL OF CINEMA AND TELEVISION ARE TIM TAYLOR IN THE A. B. C. SITCOM HOME IMPROVEMENT AND THE SHIRTLESS CHISEL JAWED MEN OF FOX'S MELROSE PLACE WHO ARE OFTEN SEEN DRYING THE DISHES IN BOXER SHORTS IN RECENT YEARS WOMEN HAVE HAD TO BALANCE THEIR PROFESSIONAL AND PERSONAL LIVES WHICH MAY EXPLAIN WHY THEIR TELEVISION HEROES HAVE EVOLVED INTO MORE REALISTIC MEN CERTAINLY FEMALE ROLES ON TELEVISION HAVE ALSO CHANGED SAYS RICHARD PENA DIRECTOR OF THE FILM SOCIETY OF LINCOLN CENTER IN THE NINETEEN SEVENTIES HE SAYS FARRAH FAWCETT WAS TELEVISION'S PINUP GIRL NOW IT'S FORTY SEVEN YEAR OLD CANDICE BERGEN AS MURPHY BROWN AND SHARP TONGUED JULIA LOUIS DREYFUSS FROM QUOTE SEINFELD QUOTE A WHOLE NUMBER OF WOMEN PASSED THROUGH L. A. LAW ADDS MR. PENA WHO WERE SMART GOOD LAWYERS AS WELL AS ATTRACTIVE SEXY WOMEN REAL SEEMING MEN ON TELEVISION AND IN THE MOVIES LIKE AL PACINO AND MR. CARUSO HAVE APPEAL BECAUSE THEY HAVE TO USE THEIR BRAINS NOT THEIR LOOKS TO GET THE GIRL SAYS ELIZABETH CAUSEY THIRTY ONE A SCHOOL ADMINISTRATOR IN MANHATTAN THEY'RE SMART YOU THINK MAYBE THEY'RE SMART ENOUGH NOT TO LIKE KIM BASINGER THE FAVORED TYPE OF MAN IN AMERICAN POPULAR CULTURE TODAY IS A TOUGH BUT GENTLE GUY WHO SHOWS PSYCHOLOGICAL DEPTH AND COMPLEXITY SAYS DAVID SCHWARTZ HEAD OF FILM AND VIDEO AT THE AMERICAN MUSEUM OF THE MOVING IMAGE THUS CLINT EASTWOOD'S EVOLUTION FROM DIRTY HARRY TO A REPRESSED SECRET SERVICE AGENT WITH A BATTERED EGO IN IN THE LINE OF FIRE IN THE NINETEEN SEVENTIES YOU SAW THE SENSITIVE QUIET MALE LIKE ALAN ALDA AND WOODY ALLEN SAYS MR. SCHWARTZ QUOTE THEN IN THE NINETEEN EIGHTIES THERE WAS A BACKLASH AGAINST THAT WITH THE BIG MACHO STARS LIKE SCHWARZENEGGER OR STALLONE BUT THAT SORT OF CHARACTER HAS NO DIMENSIONS THE HARD BOILED GUY WITH THE HEART OF GOLD IS A STOCK CHARACTER IN AMERICAN TELEVISION AND FILM AND THE ACTORS WHO HAVE PLAYED HIM SPRING EASILY TO MIND TRACY BOGART AND CAGNEY THE ACTOR WITH WHOM MR. CARUSO IS MOST OFTEN COMPARED MY IMMEDIATE RESPONSE TO CARUSO WAS THE SAME RESPONSE I HAD AS A CHILD TO JAMES CAGNEY SAYS ANITA BETHEL FORTY AN NYPD BLUE FAN I ALWAYS FELT INSTINCTIVELY THAT CAGNEY WAS A VERY NICE MAN EVEN IN THOSE TOUGH GUY ROLES HE WAS A GUY WITH A BIG HEART MR. PENA OF LINCOLN CENTER'S FILM SOCIETY SAYS MR. CARUSO HAS SOMETHING ELSE TOO A CONTEMPORARY PSYCHOLOGY HE OFTEN FACES MODERN SITUATIONS IN WHICH RIGHT AND WRONG ARE OBSCURE IN WHICH GHASTLY URBAN VIOLENCE MAKES MORAL OR RATIONAL BEHAVIOR DIFFICULT KELLY SAYS MR. CARUSO WANTS TO DO THE RIGHT THING BUT HE DOESN'T ALWAYS HAVE THE ANSWERS KELLY ALSO TAKES HIS CLOTHES OFF WHICH SETS HIM APART FROM HEARTTHROBS AND COPS OF THE PAST MR. CARUSO'S IMPERFECT BACK IS SPORADICALLY DISPLAYED ON NYPD BLUE USUALLY ON ITS WAY FROM RUMPLED BED TO SHOWER QUOTE ADVERTISERS KNOW THAT BOTH MEN AND WOMEN ARE RESPONDING TO MALE NUDITY QUOTE SAYS NAOMI WOLF THE FEMINIST AUTHOR OF QUOTE FIRE WITH FIRE QUOTE WOMEN PERHAPS WITH ENTHUSIASM AND MEN PERHAPS WITH ANXIETY THAT KEEPS EVERYBODY TUNED IN COSMETICS FRAGRANCE DETERGENT AND DIET PLAN COMPANIES HAVE RESPONDED BY BUYING TIME ON NYPD BLUE KELLY'S RED HAIR IS A TIP OFF THAT HE'S A POST MODERN HEARTTHROB NEITHER TALL DARK AND HANDSOME LIKE CARY GRANT NOR PRETTY AND WHOLESOME LIKE ROBERT REDFORD MR. PENA SAYS MR. CARUSO'S OFFBEAT LOOKS ENHANCE THE SENSE THAT JOHN KELLY IS A REAL PERSON A HEARTTHROB IS A VALENTINO A TOM CRUISE WHO HAS A CERTAIN KIND OF BEAUTY SAYS MR. PENA CARUSO LOOKS LIKE A GUY WHO COULD BE A MILKMAN ERROL FLYNN COULD NEVER BE A MILKMAN QUOTE DAVID CARUSO REPRESENTS A MAN WITH A CERTAIN KIND OF MACHISMO WHO HAS COME TO TERMS WITH FEMINISM HE KNOWS HE HAS TO NEGOTIATE AND COMPROMISE WHILE NOT BEING EITHER SEDUCED OR CONVINCED BY IT QUOTE MR. PENA ADDS MR. CARUSO HIMSELF SAYS WOMEN LIKE HIS CHARACTER BECAUSE HE MAKES THEM FEEL SAFE HE'S EMOTIONAL MORAL AND VULNERABLE HE SAYS HE GOES TO CONFESSION BUT HE CARRIES A GUN MR. CARUSO CREDITS HIS PHYSICAL CHARISMA TO HAVING BEEN AN ATHLETE IN HIGH SCHOOL I WASN'T THE TOP DOG HE SAYS BUT I COULD HOLD MY OWN IN ANY SITUATION WHATEVER MR. CARUSO'S OWN CHARACTERISTICS THE PARTICULAR MIX OF WRITING ACTING AND PHYSICAL TRAITS THAT COMPRISE DETECTIVE JOHN KELLY APPEAL TO MANY AMERICAN WOMEN MOIRA SULLIVAN TWENTY SIX AN ASSOCIATE AT MORGAN STANLEY SAYS THE PROCESS IS GRADUAL HE'S NOT NICE LOOKING AND HE'S GOT THAT REALLY BAD NEW YORK ACCENT THOSE TWO THINGS WERE HARD TO GET PAST AT FIRST SHE SAYS OF COURSE THERE ARE MANY WHO REMAIN UNSWAYED HE'S SO PERFECT COMPLAINS A THIRTY THREE YEAR OLD SOCIAL WORKER IN NEW YORK QUOTE PART OF THE TIME HE'S YOUR TYPICAL COP AND PART OF THE TIME HE TALKS LIKE HE HAS A P. H. D. IN PSYCHOLOGY IT'S BEGINNING TO BUG ME PORTLAND OREGON TO SAN FRANCISCO EVEN BEFORE BOARDING THE GREEN TORTOISE THE HIPPIE VERSION OF THE GREYHOUND BUS THAT HAS BEEN PLYING AMERICA'S HIGHWAYS FOR NEARLY TWENTY FIVE YEARS I WAS BERATING MYSELF FOR BEING AN UNFIT MOTHER FROM THE LOOKS OF THE PASSENGERS WAITING TO LOAD THEIR SLEEPING BAGS AND BACKPACKS I WOULD BE EXPOSING MY CHILDREN TO SOME REAL WEIRDOS THERE WAS THE GUY WITH THE GREEN HAIR AND THE TATTOOS ALL OVER HIS LEGS I LOOKED ASKANCE AT THE FIFTYSOMETHING MAN WITH THE JOHN LENNON SPECTACLES THE BLACK SLIPPERS AND THE CONICAL CROCHETED CAP THE GIRL WITH THE DOG WAITED UNTIL THE ASSISTANT DRIVER WHO LOOKED LIKE A REFUGEE FROM A GRUNGE BAND CHECKED TO SEE IF ANY PASSENGERS WERE ALLERGIC TO DOGS QUOTE COOL QUOTE HE SAID WHEN ALL RESPONSES WERE NEGATIVE HE BECKONED THE GIRL ABOARD AND AS ORION THE DOG SNUFFLED UP AND DOWN THE AISLE LIKE A VACUUM CLEANER THE HIRSUTE DRIVER IN THE RAINBOW BERET PUT THE TORTOISE INTO GEAR AND WE WERE OFF ON A TWENTY TWO HOUR TRIP IN EVERY SENSE OF THE WORD TO SAN FRANCISCO OUR BUS'S NAME WAS ABIOGENESIS WHICH MEANS BRINGING A NONLIVING THING TO LIFE IT IS ONE OF A FLEET OF GREEN TORTOISE BUSES THAT JOURNEY ACROSS COUNTRY AND AS FAR SOUTH AS CENTRAL AMERICA CHEAPLY TRANSPORTING COUNTERCULTURE TYPES WHO SEEK TO ARRIVE INSPIRED NOT DOG TIRED AS THE COMPANY SLOGAN GOES THE PORTLAND SAN FRANCISCO RUN COSTS THIRTY NINE DOLLARS COMPARED WITH FORTY EIGHT DOLLARS ON GREYHOUND THE OWNER OF THE BUS LINE GARDINER KENT NOW LIVES IN SAN FRANCISCO WHERE HE OPERATES A YOUTH HOSTEL BUT HE STILL OWNS COW CREEK THE SOUTHERN OREGON REST STOP THAT MAKES THE PORTLAND SAN FRANCISCO RUN UNIQUE IT'S A ONE HUNDRED SEVENTEEN ACRE SPREAD NEAR THE TOWN OF ROSEBURG SMACK IN THE HEART OF TIMBER COUNTRY THE GOD AND SPOTTED OWL FEARIN' LOCALS HAVE INDICATED THAT THEY DON'T WANT NO DAMN HIPPIES STOPPING HERE SO A DINNER BREAK AT THE OWNER'S PROPERTY WAS A REASONABLE ALTERNATIVE IN A RETIRED BUS THAT HAD BEEN CONVERTED INTO A KITCHEN WE PREPARED OUR COMMUNAL MEAL THEN WE DISHED UP THE FISH AND VEGETABLES IN A LARGE GEODESIC DOME MADE FROM THREE BRANCHES AND PLASTIC THE DOME IS CALLED THE THOUGHT PROVOKING STRUCTURE NUMEROUS PEOPLE ASKED IF OUR REPAST CONTAINED ANY MEAT PRODUCTS AND WERE RELIEVED TO LEARN THAT NOTHING ANIMALISH SULLIED THE FOOD HOWEVER THE DRIVER AND MORE THAN HALF THE PASSENGERS SMOKED CIGARETTES THIS SITUATION I FOUND THOUGHT PROVOKING AT COW CREEK MY TWELVE YEAR OLD SON SAW A NAKED WOMAN UP CLOSE FOR THE FIRST TIME I THINK WE HAD WALKED DOWN TO THE CREEK TO SEE THE SAUNA BUILT ON THE BANK SUDDENLY A SHAPELY BLOND HIPPIE EMERGED NUDE AND GAILY WAVING HER HANDS ABOVE HER HEAD SCAMPERED INTO THE ICE COLD CREEK I TOLD CORY TO AVERT HIS EYES WHICH HAD MYSTERIOUSLY GROWN TO THE SIZE OF SAUCERS SPEAKING OF SAUCERS AFTER CONVERSING WITH MANY OF MY FELLOW PASSENGERS IT DAWNED ON ME THAT I WAS ABOUT THE ONLY ONE ON THE BUS WHO HAD NEVER ENCOUNTERED AN ALIEN OR A U. F. O. I FEEL LEFT OUT I COMPLAINED GOOD NATUREDLY TO THE COSMIC WOMAN AT MY SIDE I'VE NEVER SEEN A U. F. O. SHE OFFERED A SUCCINCT SOLUTION CALL IT FORTH SHE WHISPERED BY THE TIME WE HIT THE ROAD AFTER DINNER MY KIDS HAD MADE LOTS OF NEW FRIENDS PEOPLE WHO SAW IN THEM FERTILE NEW GROUND FOR EXPOSTULATING ON STALE OLD HIPPIE POINTS OF VIEW I HAD HEARD THE SAME OLD STUFF A ZILLION TIMES SINCE COLLEGE DAYS SO I DIDN'T GREET THE THEORIES WITH THE SAME ENTHUSIASM FELT BY MY YOUNG SON MOM HE GASPED QUOTE DID YOU KNOW OUR BODIES ARE JUST FIGMENTS OF OUR IMAGINATION QUOTE YES I ANSWERED CURTLY I DID HE LOOKED AT ME WITH AMAZEMENT AND WITH A NEW RESPECT NEVER DID HE REALIZE THAT HIS MOTHER KNEW QUITE SO MUCH WE ROLLED DOWN THE HIGHWAY FOR ANOTHER HOUR OR TWO BEFORE OUR NEXT STOP THE DRIVER PLAYED GRATEFUL DEAD TAPES ON THE GENEROUS SOUND SYSTEM SPEAKERS LINED THE CEILING SO THAT NO PASSENGERS EXPERIENCE MUSIC WITHDRAWAL MIKE THE MAN SITTING ACROSS FROM ME TOLD ME HE HAD ATTENDED THIRTY GRATEFUL DEAD CONCERTS IN HIS LIFETIME HE SANG ALONG WITH EVERY SINGLE TUNE THE GRATEFUL DEAD SUPPLIED OUR LULLABY AS WE CONVERTED THE GREEN TORTOISE INTO ONE HUGE BED A PROCESS KNOWN AS DOING THE MIRACLE THE VERY FRONT AND BACK OF THE BUS BECAME CARPETED WITH FUTONS UPON WHICH PEOPLE STRETCHED OUT IN ROWS OF SLEEPING BAGS THE MIDDLE OF THE BUS WHICH DURING THE DAY HOUSED TWO CAFE BOOTHS BECAME THREE TIERED BUNK BEDS ON EITHER SIDE CORY TOOK A TOP BUNK WHILE MY DAUGHTER AND I SQUEEZED TOGETHER ON A MIDDLE BUNK THE DRIVER TURNED OFF THE MUSIC AND SOON NOTHING WAS HEARD BUT SOFT SNORING AND THE WHEELS ON THE BUS GOING ROUND AND ROUND IN THE MORNING I AWOKE TO SEE THE SUN RISING ABOVE PALM TREES THE GREEN TORTOISE WAS INCHING ALONG IN RUSH HOUR TRAFFIC APPROACHING SAN FRANCISCO I GLANCED OVER AT THE VEHICLES IN THE OTHER LANES AND SAW PEOPLE STARING I ADMIT WE WERE QUITE A SIGHT A BUSLOAD OF PEOPLE IN BED THE GOLDEN GATE BRIDGE WAS IN VIEW WHEN PEOPLE STARTED ROLLING UP THEIR SLEEPING BAGS SITTING CROSS LEGGED ON THE FUTONS AND CONVERSING ABOUT THEIR TRAVEL PLANS A MAN MY AGE WHO TOLD ME HE HADN'T BEEN THE SAME SINCE VIETNAM SAID HE WOULD NOT BE LINGERING IN SAN FRANCISCO BUT WOULD LEAVE AS QUICKLY AS POSSIBLE TO CONTINUE HIS TRIP TO COSTA RICA IF I STAY TOO LONG IN SAN FRANCISCO HE COMPLAINED I GET ACID FLASHBACKS BY THE TIME WE ALL PARTED IN DOWNTOWN SAN FRANCISCO EVERYONE ON THE BUS WAS BEGINNING TO LOOK NORMAL TO ME EVEN THE GUY WITH THE GREEN HAIR I ACCEPTED THEM ALL AS PROPER TRAVELING COMPANIONS FOR ME AND MY CHILDREN THE KIDS AND I HOISTED OUR SLEEPING BAGS TO OUR SHOULDERS GRABBED OUR LUGGAGE TURNED OUR BACKS ON OUR FELLOW TRAVELERS AND WALKED AWAY I WONDERED HOW LONG IT WOULD BE BEFORE THE SPELL WAS BROKEN AND ONCE AGAIN THEY WOULD ALL SEEM LIKE WEIRDOS TO ME MS. HAUSER IS A WRITER IN PORTLAND CLOSELY HELD TULARIK INCORPORATED SOUTH SAN FRANCISCO WON A BIG BOOST WHEN PHARMACEUTICAL GIANT MERCK AND COMPANY SIGNED AN AGREEMENT TO COLLABORATE ON A THERAPY TO IMPEDE THE PROGRESS OF SEVERAL SEXUALLY TRANSMITTED VIRUSES TERMS WEREN'T DISCLOSED MERCK HAS RIGHTS TO ANY PRODUCTS TULARIK DEVELOPS TO TREAT HERPES HUMAN PAPPILOMA VIRUS OR THE AIDS VIRUS AND HAS OPTIONS TO PRODUCTS THAT TREAT CYTOMEGALOVIRUS WHICH CAN LEAD TO LOSS OF VISION IN AIDS PATIENTS RESPIRATORY SYNCYTIAL VIRUS AND EPSTEIN BARR VIRUS A FEW DAYS BEFORE THE NEW YEAR THE CLINTON JUSTICE DEPARTMENT FILED A LAWSUIT AGAINST THE CITY OF AURORA ILLINOIS FOR WHAT IT CALLED THE POLICE AND FIRE DEPARTMENTS' QUOTE PATTERN AND PRACTICE QUOTE OF DISCRIMINATION AGAINST JOB APPLICANTS WITH DISABILITIES SUCH AS CHRONIC BACK PROBLEMS JUSTICE'S CIVIL RIGHTS LAWYER CALLED THE SUIT A VENTURE INTO A NEW FIELD OF ANTI DISCRIMINATION LAW WELCOME TO THE NEXT BIG CHAPTER IN THE U. S. LITIGATION EXPLOSION NOW BEING UNFOLDED BY THE CLINTON PRESIDENCY WHAT'S SO WRONG WITH MANDATING AN END TO BIAS IN AMERICA THE WAY IT WILL BE DONE INSTEAD OF CONCENTRATING ON INDIVIDUAL CASES OF DEMONSTRABLE DISCRIMINATION AS WAS THE GENERAL FEDERAL POLICY OF THE NINETEEN EIGHTIES THE CLINTONITES SHOW EVERY INTENTION OF USING BROAD STATISTICAL MEASURES AS WITH AURORA THESE WILL SUBSTANTIATE A COMPANY'S PATTERNS AND PRACTICES OR MORE SPECULATIVELY THE ADVERSE IMPACT OF ITS POLICIES ON ACTUAL OR PROSPECTIVE EMPLOYEES SUPPLIERS OR CUSTOMERS ALL WITH REGARD TO PROTECTED CLASSES OF PEOPLE AND THOSE CATEGORIES KEEP INCREASING ONCE THE ACTIVIST LAWYERS ARE TURNED LOOSE AS THEY LAST WERE UNDER JIMMY CARTER WITH LESS SWEEPING LAWS TO WORK WITH U. S. BUSINESSES CAN EXPECT TO BE DRAGGED INTO COURT OR OTHERWISE BROWBEATEN INTO SETTLEMENTS THAT BOOST THE STOCK OF SOME GROUPS AT THE EXPENSE OF OTHERS AND WE ARE TALKING ABOUT GROUPS BECAUSE THAT IS HOW REMEDIES ARE APPLIED WHEN THE MORE CONCRETE BUT DIFFICULT STANDARD OF BIAS AGAINST INDIVIDUALS IS DISCARDED BILL CLINTON'S COMPTROLLER OF THE CURRENCY EUGENE LUDWIG IS A LEADER IN THE NEW ANTIBIAS WAVE AT OTHER AGENCIES GENERAL COUNSELS ITCHING TO BREAK NEW GROUND ARE THE VANGUARD OF THE LEGAL ASSAULT MOREOVER THERE'S A PENT UP IMPATIENCE IN WASHINGTON'S LIBERAL COMMUNITY THAT WILL BE EASED ONLY BY THE KIND OF BROAD BRUSH LITIGATION THAT WOULD SATISFY THOSE WHO THINK THE U. S. IS A PATHOLOGICALLY BIASED SOCIETY THE SIGNAL CALLER FOR THIS NEW GAME PLAN IS NONE OTHER THAN WEBSTER HUBBELL THE OFFENSIVE COACH AT THE JUSTICE DEPARTMENT THE ASSOCIATE ATTORNEY GENERAL FROM LITTLE ROCK'S ROSE LAW FIRM RECENTLY TOLD A LUNCHEON OF THE WASHINGTON COUNCIL OF LAWYERS A PRO BONO BASTION THAT HELP WOULD BE ON THE WAY SOON MOST SPECIFICALLY THERE WOULD BE A FRONT LOADED AGENDA FOR THE NEW ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS ONCE A REPLACEMENT FOR LANI GUINIER IS FINALLY FOUND AND FOR THE NEW TOP COMMAND AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WE WILL BRING PEOPLE IN WHO INTEND TO BE ACTIVE SOUNDS LIKE THE RECRUITERS WILL BE VISITING THE UNIVERSITY OF WISCONSIN LAW SCHOOL THE C. SPAN CAMERA WAS ON HAND TO RECORD HILLARY CLINTON'S FORMER LAW PARTNER ALSO PROMISING AGGRESSIVE PROSECUTION OF THE DISABILITIES ACT THE EDUCATION PERIOD IS OVER HE SAID SPECIFICALLY CITING DENTISTS WHO AVOID AIDS PATIENTS THERE WILL BE SCRUTINY OF INSURERS WHO SKIRT HIGHRISK AREAS DEMOLITION OF GLASS CEILINGS IN THE WORKPLACE AND ENFORCEMENT OF ENVIRONMENTAL EQUITY MEANING THEY'LL DISCOURAGE JOB CREATING NOXIOUS PLANTS IN POOR MINORITY AREAS WHERE LAND PRICES MIGHT INVITE THEM MR. HUBBELL PRONOUNCED HIMSELF IN FAVOR OF QUOTE BROAD BASED REMEDIES QUOTE ALL OF WHICH MEANS LAWYERS ON THE LEFT CAN START PUTTING THOSE NEW ADDITIONS ON THEIR HOMES THE CIVIL RIGHTS DIVISION AT JUSTICE IS A TURN KEY OPERATION FOR WHOMEVER THE CLINTONITES CHOOSE TO RUN IT ITS CAREER STAFF WAS BARELY AFFECTED BY THE REAGAN REVOLUTION AND IT'S DISPOSED TO FIND GROUNDS FOR SWEEPING LEGAL ACTION THE SITUATION IS DIFFERENT AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WHERE CLARENCE THOMAS LED A GENUINE REFORMATION TOWARD AN INDIVIDUAL RIGHTS MODEL IT WILL TAKE MANY MONTHS OF DILIGENT EFFORT TO IMPLANT THE GROUP VICTIMIZATION MENTALITY BACK INTO THAT AGENCY INDEED THE CASES OF MR. THOMAS AND FORMER SUPREME COURT NOMINEE ROBERT BORK RECALL TO MIND WHAT THIS IMPENDING CLINTON COUNTERREVOLUTION IS ALL ABOUT BOTH WERE SAVAGED BY AN ALLIANCE OF LEGAL POLITICAL INTERESTS WHOSE AGENDA PUTTING ASIDE THE ABORTION ISSUE IS A STREAM OF CLASS BASED DISCRIMINATION CLAIMS IT'S PAYBACK TIME NOW AND THE CLINTONS ARE TRYING TO FILL THE SEATS OF LAWYERLY POWER IN THEIR EXECUTIVE BRANCH WITH THE PEOPLE WHO FOUGHT MESSRS THOMAS AND BORK WE SUSPECT MANY BUSINESS PEOPLE STILL REGARD THESE LEGAL STRUGGLES AS RATHER ARCANE OR PAROCHIAL STUFF THE YEARS JUST AHEAD ARE LIKELY TO TEACH THEM DIFFERENT COMPANIES AND OTHER INSTITUTIONS MAY FIND THAT THEIR BOTTOM LINE HAS A BALANCE DUE THAT SOME LEGAL MIND HAS TRACED TO UNCONSCIOUS DISCRIMINATION AGAIN THERE IS A BIG GAP HERE BETWEEN IDEALISTIC RHETORIC AND THE WAY THESE STRATEGIES GET PLAYED OUT THE ARGUMENTS FOR FAIRNESS AND DIVERSITY HAVE SUPERFICIAL APPEAL TO MOST PEOPLE BUT THEY GET TWISTED IN THE BIZARRE COURSE OF THE ACTUAL LITIGATION OVER STATISTICALLY DERIVED COMPLAINTS IN THE END THE CAUSE OF JUSTICE AMOUNTS TO FOUR WORDS SEE YOU IN COURT RESTRUCTURING CHARGES AND SLUGGISH EARNINGS WILL STRIKE SOME MAJOR MEDICAL DEVICE COMPANIES IN THE NINETEEN NINETY THREE FOURTH QUARTER AN ILL EFFECT OF THE HEALTH CARE INDUSTRY'S RESPONSE TO THE CLINTON ADMINISTRATION'S REFORM PLANS ANALYSTS SAID QUOTE THE CLINTON PLANS HAVE FORCED THE MARKETPLACE THE DOCTORS AND THE HOSPITALS TO PRACTICE MORE CONSERVATIVELY AND BE MORE COST CONSCIOUS AND THAT HAS SPILLED DOWN TO MANUFACTURERS AND MEDICAL SUPPLY COMPANIES QUOTE SAID ANALYST EUGENE MELNITCHENKO OF LEGG MASON WOOD WALKER INCORPORATED THE WRITE OFFS AND CHARGES ARE THE ADJUSTMENTS MADE FOR THE NEW ENVIRONMENT ANALYST SAM NAVARRO OF FURMAN SELZ INCORPORATED SAID THE PROPOSED HEALTH CARE REFORMS RESULTED IN THE FREEZING OF HOSPITAL BUDGETS HALTING SOME SURGICAL PROCEDURES AND SLOWING THE PURCHASE OF HOSPITAL SUPPLIES WHICH HAS HURT THE MEDICAL SUPPLY COMPANIES MR. NAVARRO SAID NINETEEN NINETY THREE WAS A TOUGH YEAR FOR THE INDUSTRY MOST COMPANIES WILL END UP SEEING FINANCIAL PERFORMANCES BELOW THE PROJECTED NUMBERS IN NINETEEN NINETY THREE MEDICAL SUPPLY HOUSES ARE EXPECTED TO SHOW TWO PERCENT TO FOUR PERCENT GROWTH IN REVENUE COMPARED WITH THE FIVE PERCENT TO SEVEN PERCENT RISE IN NINETEEN NINETY TWO MR. MELNITCHENKO SAID HE SAID PROFITS SHOULD INCREASE BY SIX PERCENT TO EIGHT PERCENT AGAINST THE TEN PERCENT TO FIFTEEN PERCENT GROWTH OF NINETEEN NINETY TWO BAXTER INTERNATIONAL INCORPORATED SAID IT WILL TAKE A PRETAX CHARGE AGAINST EARNINGS IN THE FOURTH QUARTER OF SEVEN HUNDRED MILLION DOLLARS TO RESTRUCTURE ITS BUSINESS AND CUT FOUR THOUSAND FIVE HUNDRED EMPLOYEES OR SEVEN POINT THREE PERCENT OF ITS WORK FORCE ACCORDING TO A FIRST CALL RESEARCH NETWORK SURVEY NINETEEN ANALYSTS ON AVERAGE ESTIMATE BAXTER WILL EARN FIFTY NINE CENTS A SHARE FOR FOURTH QUARTER OF NINETEEN NINETY THREE COMPARED WITH THE SIXTY TWO CENTS REPORTED BY BAXTER IN THE YEAR AGO PERIOD U. S. SURGICAL CORPORATION SAID IT EXPECTS A ONE HUNDRED TWENTY FIVE MILLION DOLLAR RESTRUCTURING CHARGE IN THE NINETEEN NINETY THREE FOURTH QUARTER THE COMPANY SAID THE CHARGE REPRESENTS COSTS ASSOCIATED WITH SCUTTLING OF PLANS TO OPEN A EUROPEAN HEADQUARTERS IN PARIS AND THE ELIMINATION OF THREE HUNDRED TO FIVE HUNDRED EMPLOYEES FIRST CALL PROJECTS A FOURTH QUARTER LOSS OF NINE CENTS A SHARE COMPARED WITH NET INCOME OF SIXTY FOUR CENTS REPORTED FOR THE YEAR AGO PERIOD IT WILL TAKE U. S. SURGICAL A COUPLE OF YEARS TO RETURN TO ITS OLD EARNINGS POWER SAID ANALYST GLENN REICIN OF MORGAN STANLEY AND COMPANY THEY HAVE TO EMPHASIZE CONTROL OF COSTS AND GET AN INCREASED DEMAND FOR THEIR PRODUCTS MR. REICIN ALSO NOTED THAT C. R. BARD INCORPORATED HAS BEEN STRUGGLING TO INCREASE ITS SHARE OF THE ANGIOPLASTY MARKET FOR THE PAST THREE YEARS BUT HE EXPECTS THE COMPANY TO DO WELL IN NINETEEN NINETY FOUR WITH TWO NEW PRODUCTS UROLASE A LASER TREATMENT FOR PROSTATE CANCER AND CONTIGEN WHICH ALLEVIATES URINARY INCONTINENCE FIRST CALL ESTIMATES EARNINGS OF FORTY THREE CENTS A SHARE FOR C. R. BARD IN FOURTH QUARTER NINETEEN NINETY THREE COMPARED WITH FORTY CENTS A YEAR AGO ANALYSTS SAID SAINT JUDE MEDICAL INCORPORATED ALSO SHOULD POST MODEST EARNINGS GROWTH FOR THE QUARTER ANALYSTS ARE WAITING FOR THE COMPANY TO DIVERSIFY IN NINETEEN NINETY FOUR PERHAPS THROUGH A MAJOR ACQUISITION AS PROMISED BY SAINT JUDE MEDICAL PRESIDENT AND CHIEF EXECUTIVE RONALD MATRICARIA WHO JOINED THE COMPANY IN MARCH NINETEEN NINETY THREE FIRST CALL ESTIMATES SAINT JUDE EARNINGS AT FIFTY NINE CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH FIFTY FIVE CENTS IN NINETEEN NINETY TWO MR. REICIN SAID THIS YEAR'S MERGER OF COLUMBIA HEALTHCARE CORPORATION AND H. C. A. HOSPITAL CORPORATION OF AMERICA WHICH JOINED THE NATION'S TWO LARGEST FOR PROFIT HOSPITAL CHAINS AND THE MERGER OF MERCK AND COMPANY AND MEDCO CONTAINMENT SERVICES INCORPORATED WHICH MADE MERCK THE BIGGEST PRODUCER AND DISTRIBUTOR OF PHARMACEUTICALS SPURRED EXECUTIVES OF OTHER HOSPITAL AND PHARMACEUTICAL COMPANIES TO CONSIDER A MERGER AS A WAY TO IMPROVE OPERATING EFFICIENCY QUOTE BUT THERE HASN'T BEEN ANYTHING LIKE THAT IN THE MEDICAL DEVICE ARENA YET FOR MANAGEMENT TO RESPOND TO QUOTE MR. REICIN SAID SUCH MERGER ACTION IN THE MEDICAL SUPPLY SECTOR WOULD IMPROVE ITS EARNINGS PERFORMANCE HE SAID MR. REICIN SAID HE EXPECTS SLOWER PER SHARE EARNINGS GROWTH FOR THE GROUP OF STOCKS HE FOLLOWS WHICH INCLUDES BAXTER U. S. SURGICAL SAINT JUDE MEDICAL JOHNSON AND JOHNSON AND C. R. BARD HE SAID THE GROUP'S EARNINGS SHOULD RISE FOURTEEN POINT FIVE PERCENT IN NINETEEN NINETY FOUR AFTER RISING SEVENTEEN PERCENT IN NINETEEN NINETY THREE AND NINETEEN PERCENT IN NINETEEN NINETY TWO FURMAN SELZ ANALYST MR. NAVARRO SAID THE NEW FISCAL YEAR WILL SHOW A PICK UP FOR THE INDUSTRY BECAUSE HE BELIEVES THE MARKETPLACE ADJUSTMENTS TO THE CLINTON HEALTH CARE PROPOSALS ARE COMPLETE MR. MELNITCHENKO ALSO SAYS HE THINKS MEDICAL SUPPLY COMPANIES WILL SHOW HIGHER GROWTH IN NINETEEN NINETY FOUR HE PROJECTS AN IMPROVEMENT IN REVENUE OF SIX PERCENT TO EIGHT PERCENT AND A RISE IN PROFIT OF TEN PERCENT TO FIFTEEN PERCENT FROM NINETEEN NINETY THREE IT WAS A YEAR OF QUOTE EXTRAORDINARY STRENGTH ACROSS THE BOARD IN THE FUND BUSINESS QUOTE SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO AFTER THE THIRD YEAR IN A ROW OF STRONG STOCK FUND RETURNS YOU PINCH YOURSELF THE ECONOMIC UPTURN HELPED ALL YEAR LONG I'VE BEEN A BULL ON THE ECONOMY SAYS G. KENNETH HEEBNER WHOSE C. G. M. CAPITAL DEVELOPMENT FUND GAINED TWENTY EIGHT POINT SEVEN PERCENT IN NINETEEN NINETY THREE WITH HELP FROM A BIG STAKE IN CYCLICAL STOCKS TIED TO THE UPS AND DOWNS OF THE BUSINESS CYCLE THE GUIDING PRINCIPLE AT THIS POINT IN TIME IS RISK MANAGEMENT INSTEAD OF RETURN GATHERING SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER IN CHICAGO TAKE A MODESTLY AGGRESSIVE APPROACH BUT HEDGE BY HOLDING SOME CASH OR INVESTMENTS SUCH AS GOLD FUNDS WHICH TEND TO GO UP WHEN STOCKS GO DOWN STOCK FUNDS BEAT THE S. AND P. FIVE HUNDRED IN NINETEEN NINETY THREE BECAUSE THEY OWNED STOCKS OF SMALL AND MID SIZED COMPANIES THAT ARE RIDING THE ECONOMIC RECOVERY WITH MORE POISE THAN THE BIG BLUE CHIPS IN THE INDEX U. S. STOCK FUNDS ALSO BOOSTED THEIR RETURNS BY SPLURGING ON HOT FOREIGN STOCKS WHILE U. S. INVESTORS WHO STUCK TO HOME MADE GOOD MONEY IN NINETEEN NINETY THREE THE YEAR WILL GO DOWN AS THE ONE WHEN AMERICAN FUND INVESTORS DISCOVERED FOREIGN STOCK MARKETS FUELED BY RECORD SUMS POURING INTO U. S. MUTUAL FUNDS AND ACCELERATING INVESTMENTS BY INSTITUTIONAL INVESTORS LATIN AMERICAN MARKETS EXPLODED UPWARD IN THE FOURTH QUARTER CATCHING THE WAVE STOCK FUNDS INVESTING IN LATIN AMERICA ROSE TWENTY EIGHT POINT NINE SIX PERCENT IN THE LAST THREE MONTHS OF NINETEEN NINETY THREE WHILE FOR THE YEAR THEY WERE UP FIFTY SEVEN POINT OH FIVE PERCENT FUNDS INVESTING IN THE PACIFIC ROSE TWENTY SIX POINT SIX TWO PERCENT IN THE FOURTH QUARTER CAPPING OFF A GAIN OF SIXTY THREE POINT EIGHT ONE PERCENT FOR THE YEAR ENTRANCED BY THE RETURNS THAT THEIR OWN MONEY HAD CREATED FUND INVESTORS CONTINUED TO POUR MONEY INTO INTERNATIONAL FUNDS AT THE END OF THE YEAR ONE OF THE INVESTORS MAKING MONEY IN PACIFIC FUNDS WAS CAROL SHEARER A SEMIRETIRED HEALTH CARE CONSULTANT IN IRVINE CALIFORNIA STARTING A YEAR OR TWO AGO MRS. SHEARER MOVED OUT OF T. ROWE PRICE INTERNATIONAL FUND AND TRADED AMONG SEVERAL OTHER PRICE FUNDS INCLUDING JAPAN AND NEW ASIA STOCK FUNDS BEAT THE PRELIMINARY TEN POINT THREE FOUR PERCENT ANNUAL RETURN OF TAXABLE BOND FUNDS IN NINETEEN NINETY THREE BUT FEW INVESTMENT ADVISERS HAD EXPECTED INTEREST RATES TO FALL AS LOW AS THEY DID OR BOND FUNDS TO REGISTER SUCH GOOD GAINS BOTH BOND FUND AND STOCK FUND INVESTORS BEAT THE MEAGER TWO POINT SIX ONE PERCENT RETURN OF RETAIL MONEY MARKET FUNDS FOR THE YEAR IN FACT EVERY CATEGORY OF STOCK FUND MEASURED BY LIPPER ANALYTICAL SERVICES INCORPORATED BEAT THE RETURN ON MONEY MARKET FUNDS THE TOTAL RETURN FIGURES FOR STOCK AND BOND FUNDS MEASURE PRICE CHANGES AND REINVESTED DIVIDENDS DESPITE A REBOUND IN INTEREST RATES IN THE FOURTH QUARTER BOND FUNDS EKED OUT A SLIM GAIN OF ZERO POINT EIGHT NINE PERCENT FUNDS INVESTING IN INTEREST RATE SENSITIVE STOCKS ALSO FLAGGED IN THE FINAL THREE MONTHS OF NINETEEN NINETY THREE UTILITY FUNDS DROPPED TWO POINT SEVEN SIX PERCENT ON AVERAGE FINANCIAL SERVICES FUNDS SLID THREE POINT SIX NINE PERCENT AND REAL ESTATE FUNDS FELL ONE POINT OH TWO PERCENT ONLY JAPAN SUFFERED AMONG BIG OVERSEAS MARKETS IN THE FOURTH QUARTER AS THE JAPANESE ECONOMY SEEMED TO SINK EVER DEEPER BUT DESPITE A LOSS OF TWELVE POINT TWO TWO PERCENT FOR JAPANESE STOCK FUNDS IN THE FOURTH QUARTER THE FUNDS STILL TURNED IN A STRONG TWENTY TWO POINT NINE FOUR PERCENT TOTAL RETURN FOR U. S. INVESTORS IN NINETEEN NINETY THREE GOLD RESUMED ITS SURPRISINGLY STRONG RALLY LIFTING GOLD FUNDS TWENTY FOUR POINT SEVEN EIGHT PERCENT IN THE FOURTH QUARTER AND EIGHTY POINT EIGHT SEVEN PERCENT IN THE YEAR EVEN HERE MUCH OF THE IMPETUS SEEMS TO BE COMING FROM GROWING WEALTH IN DEVELOPING NATIONS SAYS ANTHONY ORPHANOS MANAGER OF WARBURG PINCUS GROWTH AND INCOME UP THIRTY SEVEN POINT ONE PERCENT IN NINETEEN NINETY THREE QUOTE THERE'S BEEN TREMENDOUS DEMAND AS A RESULT OF THEIR TREMENDOUS INCREASE IN WEALTH OVER THE LAST SEVERAL YEARS AND THE LACK OF DEPTH IN THEIR OWN CAPITAL MARKETS QUOTE AS A PLACE TO INVEST THE SAVINGS BEING BUILT UP MR. ORPHANOS SAYS THE SURFEIT OF GOOD NEWS IN STOCK MARKETS AROUND THE WORLD LEAVES SOME INVESTORS WONDERING ARE THERE ANY BARGAINS LEFT OUT THERE IT'S HARD TO GET EXCITED ABOUT ONE OR TWO ASSET CLASSES INTO WHICH INVESTORS COULD THROW A LOT OF NEW MONEY SAYS KENNETH GREGORY EDITOR OF NO LOAD FUND ANALYST A NEWSLETTER IN SAN FRANCISCO THAT SUGGESTS THAT INVESTORS MIGHT LOOK TO NINETEEN NINETY FOUR AS THE YEAR THAT THEY WANT TO BE REALLY DIVERSIFIED AND NOT MAKE A LOT OF BIG BETS FOR INVESTORS SAVING TOWARD A GOAL OF AT MOST TEN YEARS YOU REALLY WANT TO BE IN THREE AREAS DOMESTIC EQUITIES INTERNATIONAL EQUITIES AND SHORT TERM FIXED INCOME OR CASH SAYS WILLIAM JOHN MIKUS A MANAGING DIRECTOR AT FINANCIAL DESIGN AN INVESTMENT ADVISORY FIRM IN LARKSPUR CALIFORNIA THE SHORTER YOUR TIME HORIZON HE SAYS THE MORE YOU SHOULD HOLD IN CASH OR IN SHORT TERM BOND FUNDS DESPITE THEIR FABULOUS RETURNS IN NINETEEN NINETY THREE DON'T BET THE RANCH ON EMERGING MARKETS FUNDS IN NINETEEN NINETY FOUR ADVISERS SAY EVEN IN THE BEST OF WORLDS THEY AREN'T LIKELY TO REPEAT SUCH A HUGE JUMP IN PRICES GOLDEN WEST FINANCIAL CORPORATION CHAIRMAN HERBERT M. SANDLER TOOK HIS SIX HUNDRED THIRTY MILLION DOLLAR OFFER FOR TROUBLED CALIFORNIA FEDERAL BANK DIRECTLY TO KEY SHAREHOLDERS AFTER AN OVERTURE WAS REBUFFED BY CALFED'S BOARD THE SHAREHOLDERS MOSTLY INSTITUTIONAL INVESTORS WHO COLLECTIVELY OWN MORE THAN FIFTY PERCENT OF CALFED WERE STILL MEETING WITH MR. SANDLER LAST NIGHT AND COULDN'T BE REACHED FOR COMMENT GOLDEN'S UNUSUAL MOVE WHICH CAME WEEKS AFTER CALFED'S BOARD REJECTED A LETTER OF INTENT OUTLINING GOLDEN'S BID CLASHES WITH THE OAKLAND CALIFORNIA THRIFT'S REPUTATION AS A STAID INSTITUTION THAT EVADED THE SAVINGS AND LOAN CRISIS UNDER ITS HUSBAND AND WIFE CHIEF EXECUTIVE TEAM HERBERT AND MARION SANDLER GOLDEN WITH TWENTY EIGHT POINT FOUR BILLION DOLLARS IN ASSETS NOW ENJOYS A FOURTEEN POINT THREE PERCENT PROFIT MARGIN AMONG THE FATTEST IN THE INDUSTRY MEANWHILE CALFED WITH FIFTEEN POINT SEVEN BILLION DOLLARS IN ASSETS IS STRUGGLING AGAINST CONTINUED LOSSES BY ACQUIRING LOS ANGELES BASED CALFED GOLDEN WOULD EXPAND ITS PRESENCE IN SOUTHERN CALIFORNIA AND GIVE ITSELF FOOTHOLDS IN NEVADA AND GEORGIA AND BY CONSOLIDATING STAFF POSITIONS GOLDEN ALSO COULD WRING OUT ABOUT SIXTY MILLION DOLLARS TO SEVENTY MILLION DOLLARS A YEAR SAID JONATHAN GRAY AN ANALYST AT SANFORD C. BERNSTEIN AND COMPANY THE SANDLERS' INTEREST IN CALFED WAS APPARENTLY PIQUED BY AN ESSAY THAT EDWARD G. HARSHFIELD CALFED'S NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER WROTE IN CALFED'S SEPTEMBER THIRTIETH REPORT TO SHAREHOLDERS THE TURNAROUND BANKER SAID CALFED WAS HURT BY NON PERFORMING LOANS AND HAD RETAINED INVESTMENT BANKER SMITH BARNEY SHEARSON INCORPORATED TO QUOTE EXPLORE WAYS TO MAXIMIZE SHAREHOLDER VALUE QUOTE BUT IN AN INTERVIEW MR. HARSHFIELD POOH POOHED MR. SANDLER'S OVERTURES THAT'S NOT AN OFFER IT'S A STARTING POINT TO MARK DOWN HE ADDED I'M WILLING TO SELL THIS PLACE AT FAIR VALUE I HAVEN'T SEEN A FAIR VALUE YET IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SHARES OF CALFED CLOSED AT SIXTEEN POINT ONE TWO FIVE DOLLARS UP ONE DOLLAR AND TWENTY FIVE CENTS OR EIGHT POINT FOUR PERCENT ON VOLUME OF ONE POINT THREE MILLION SHARES THE COMPANY'S SEPTEMBER THIRTIETH BOOK VALUE WAS TWENTY ONE DOLLARS AND FIFTY CENTS A SHARE SPECULATION ABOUT AN OFFER HAS CAUSED CALFED'S STOCK TO JUMP THIRTY TWO PERCENT SINCE EARLY NOVEMBER MEANWHILE GOLDEN'S STOCK ALSO LISTED ON THE BIG BOARD ROSE SEVENTY FIVE CENTS TO CLOSE AT THIRTY NINE DOLLARS AND TWENTY FIVE CENTS A SHARE ON VOLUME OF TWO HUNDRED FOUR THOUSAND FOUR HUNDRED SHARES GOLDEN'S SIX HUNDRED THIRTY MILLION DOLLAR BID INCLUDES TWENTY ONE DOLLARS AND FIFTY CENTS A SHARE FOR CALFED'S TWENTY FIVE MILLION COMMON SHARES OUTSTANDING PLUS NINETY MILLION DOLLARS FOR PREFERRED STOCK SUBJECT TO DUE DILIGENCE SMITH BARNEY WHICH BEGAN STUDYING CALFED IN JULY DECIDED TO HOLD AND FIX THE COMPANY RATHER THAN SELL IT TO A BIDDER UNDER THIS STRATEGY CALFED WILL SELL ITS SOUTHEAST DIVISION WHICH INCLUDES FORTY THREE BRANCHES WITH TOTAL ASSETS OF FOUR BILLION DOLLARS AND RAISE TWO HUNDRED MILLION DOLLARS TO THREE HUNDRED MILLION DOLLARS IN NEW CAPITAL BY ISSUING AND SELLING PREFERRED STOCK AND THROUGH A RIGHTS OFFERING SEVERAL SHAREHOLDERS WHO DECLINED TO BE IDENTIFIED CRITICIZED THE QUOTE HOLD AND FIX QUOTE STRATEGY AS DILUTIVE TO THEIR HOLDINGS I HAVE TO THINK THAT SHAREHOLDERS ARE INFINITELY BETTER SERVED BY MR. SANDLER'S OFFER SAID ONE HOLDER IN A LETTER SENT WITH THE BID MR. SANDLER SAID THE PROPOSED ACQUISITION WOULD ALLOW CALFED TO QUICKLY PUT BEHIND IT THE UNCERTAINTY IN WHICH THE BANK CURRENTLY FINDS ITSELF AND TO FACE CONFIDENTLY ANY CONTINUING LOSSES N. E. C. CORPORATION ENCIRCLED BY A NEW WAVE OF U. S. PERSONAL COMPUTER COMPETITORS IN ITS HOME MARKET IS TRYING TO DRAFT ONE OF THEM DELL COMPUTER CORP.TO HELP PRESERVE ITS KINGDOM JAPAN'S LEADING P. C. MAKER WITH OVER FIFTY PERCENT OF THE DOMESTIC MARKET IS NEGOTIATING TO SUPPLY N. E. C. STANDARD P. C.S TO DELL WHICH WOULD SELL THE MACHINES IN JAPAN UNDER THE DELL LABEL AN N. E. C. SPOKESMAN SAID N. E. C. SELLS P. C.S IN JAPAN THAT AREN'T COMPATIBLE WITH THE STANDARD ESTABLISHED BY INTERNATIONAL BUSINESS MACHINES CORPORATION DELL REFUSED TO COMMENT ON THE DISCUSSIONS QUOTE AT THIS TIME THERE HAS BEEN NO DECISION MADE ON THIS PROJECT QUOTE SAID A COMPANY SPOKESWOMAN IN TOKYO SHE ADDED HOWEVER THAT THERE IS MUCH POSSIBILITY THE COMPANY MIGHT OFFER P. C.S OTHER THAN THOSE HEWING TO THE I. B. M. STANDARD SINCE IT IS DELL POLICY TO SUPPLY WHAT THE CUSTOMER NEEDS IF SUCH A DEAL BECOMES REALITY IT WOULD BE THE FIRST SUCCESS IN THE U. S. ASSAULT ON N. E. C.'S NEAR MONOPOLY ON P. C.S IN JAPAN U. S. MANUFACTURERS ENTERED JAPAN MORE THAN A YEAR AGO WITH I. B. M. STYLE MACHINES AND A PRICE CUTTING ATTACK INTENDED TO ESTABLISH A BEACHHEAD IN THE WORLD'S SECOND LARGEST P. C. MARKET AND THE ONLY ONE THEY DON'T DOMINATE SO FAR U. S. FIRMS HAVE RALLIED ALL OF JAPAN'S MAJOR P. C. MAKERS EXCEPT N. E. C. TO THEIR STANDARD THE NEGOTIATIONS ALSO APPEAR TO SIGNIFY A NEW OFFENSIVE IN THE JAPANESE P. C. WARS SINCE N. E. C. HAS NEVER BEFORE ALLOWED OTHER COMPANIES TO SELL ITS MACHINES IN THE JAPANESE MARKET IT'S AN ADMISSION THAT N. E. C. IS HAVING TROUBLE RETAINING ITS SHARE AND WANTS TO SOLICIT OTHER MANUFACTURERS HELP SAID CHUCK GOTO AN ANALYST WITH S. G. WARBURG JAPAN INCORPORATED FOR DELL TOO A DEAL WITH N. E. C. WOULD MARK A MAJOR CHANGE IN ITS STRATEGY THE ONCE HIGH FLYING COMPUTER MAKER HAS BEEN PLAGUED BY TROUBLE IN ITS PRODUCT LINES ESPECIALLY LAPTOP COMPUTERS WHICH MAKE UP ROUGHLY FORTY PERCENT OF ALL P. C.S SOLD IN JAPAN DELL HAS ALSO BEEN IN RECENT NEGOTIATIONS TO BUY LAPTOP MACHINES FROM SONY CORPORATION AND A. S. T. RESEARCH INCORPORATED THE NEWS SHARPLY BOOSTED N. E. C.'S SHARE PRICE IN TOKYO AT MID MORNING ON THE TOKYO STOCK EXCHANGE N. E. C. SHARES WERE UP SEVENTEEN YEN OR NEARLY TWO PERCENT AT NINE HUNDRED TWENTY THREE IN HEAVY DEALINGS AFTER ONLY AN HOUR OF TRADING MORE THAN FOUR MILLION SHARES HAD CHANGED HANDS THE N. E. C. SPOKESMAN SAID DELL APPROACHED N. E. C. ABOUT THE POSSIBLE TIE UP N. E. C. AGREED TO THE TALKS HE ADDED BECAUSE DELL IS DOING DIRECT MARKETING OR SELLING BY MAIL ORDER SUCH SALES METHODS ARE RARE IN JAPAN AND CURRENTLY N. E. C. DOES NOT HAVE A DIRECT SALES CHANNEL LIKE THAT THE SPOKESMAN SAID SO IT WOULDN'T HAVE ANY DIRECT IMPACT OR COMPETITION WITH OUR REGULAR RESALE CHANNELS HE SAID DELL WAS CONSIDERING SELLING N. E. C. NOTEBOOK SIZED P. C.S AND DESKTOP MODELS AND THAT N. E. C. HOPED TO START SELLING UNDER THE DELL NAME BY SPRING HE SAID N. E. C. WAS AIMING TO SUPPLY DELL WITH AT LEAST ONE THOUSAND UNITS A MONTH THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING WHETHER FORMER INVESCO FUNDS GROUP PORTFOLIO MANAGER JOHN KAWESKE VIOLATED FEDERAL SECURITIES LAWS BY ALLEGEDLY FAILING TO REPORT CERTAIN TRADES IN HIS PERSONAL ACCOUNT TO HIS EMPLOYER LAWYERS FOR BOTH MR. KAWESKE AND FOR INVESCO WHICH FIRED THE STAR PORTFOLIO MANAGER TUESDAY CONFIRMED THAT DOCUMENTS RELATING TO CERTAIN TRADES BY MR. KAWESKE HAD BEEN TURNED OVER TO THE DENVER OFFICE OF THE S. E. C. THIS WEEK AND THAT THE AGENCY WAS EXAMINING SOME OF MR. KAWESKE'S TRADES DENVER BASED INVESCO PREVIOUSLY SAID IT DISMISSED MR. KAWESKE FOR VIOLATING THE BIG MUTUAL FUND COMPANY'S RULES ABOUT REPORTING PERSONAL SECURITIES TRADES IT SAID MR. KAWESKE HADN'T GOTTEN APPROVAL FOR OR DIDN'T REPORT CONFIRMATION OF SOME TEN TO TWENTY TRADES IN HIS PERSONAL ACCOUNT MUTUAL FUNDS ARE REQUIRED BY THE S. E. C. TO KEEP TRACK OF FUND MANAGERS' PERSONAL TRADES MR. KAWESKE FIFTY TWO YEARS OLD MANAGED OR CO MANAGED THREE INVESCO FUNDS WITH ASSETS OF FOUR POINT SIX BILLION DOLLARS OR NEARLY HALF THE TEN BILLION DOLLARS MANAGED BY INVESCO FUNDS GROUP THE GROUP IS OWNED BY UNITED KINGDOM BASED INVESCO P. L. C. AN INVESTMENT MANAGER WITH SIXTY FOUR BILLION DOLLARS IN ASSETS INVESCO WOULDN'T GIVE SPECIFICS OF MR. KAWESKE'S TRADES YESTERDAY BUT AT LEAST ONE OF THE TRADES IN QUESTION INVOLVED A PERSONAL INVESTMENT BY MR. KAWESKE IN A PRIVATE OFFERING PUSHED BY RAFI KHAN A CALIFORNIA STOCK PROMOTER WHO IS WAGING A PROXY FIGHT FOR CONTROL OF I. C. N. PHARMACEUTICALS ACCORDING TO INDIVIDUALS FAMILIAR WITH THE MATTER THEY SAID THE DEAL INVOLVED WAS TOO SMALL TO BE BOUGHT BY INVESCO FUNDS FUNDS MR. KAWESKE MANAGED HAD BEEN LARGE BUYERS OF I. C. N. AND OTHER STOCKS PROMOTED BY MR. KHAN LAST MONTH A FEDERAL DISTRICT JUDGE PRESIDING OVER A LAWSUIT BROUGHT BY I. C. N. FOUND THAT MR. KHAN SCHEMED TO BUY STOCK IN BRITISH GAS ILLEGALLY IN NINETEEN EIGHTY SIX THE JUDGE HAD ASKED FEDERAL PROSECUTORS TO EXAMINE WHETHER MR. KHAN PERJURED HIMSELF DURING THE I. C. N. PROCEEDINGS ACCORDING TO DAN HESSER INVESCO'S CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY ALSO LEARNED THIS WEEK OF UNREPORTED TRADES IN MR. KAWESKE'S WIFE'S NAME MR. HESSER SAID THESE TRADES VIOLATED THE FIRM'S RULES ROBERT DAVENPORT THE HEAD OF THE S. E. C.'S REGIONAL OFFICE IN DENVER DECLINED TO CONFIRM OR DENY THE EXISTENCE OF AN INVESTIGATION INTO TRADING BY MR. KAWESKE GLEN PAYNE INVESCO'S GENERAL COUNSEL SAID INVESCO'S FIRING OF MR. KAWESKE QUOTE WAS RELEVANT TO OUR S. E. C. REPORTING REQUIREMENTS QUOTE ANDREW LEVANDER THE ATTORNEY REPRESENTING MR. KAWESKE SAID HE BELIEVED THE S. E. C. INVESTIGATION WOULDN'T UNCOVER ANYTHING MORE THAN VIOLATIONS OF A TECHNICAL REPORTING REQUIREMENT HE SAID THAT THIS ISN'T A QUESTION OF INTEGRITY OR HARM TO SHAREHOLDERS AND THAT MR. KAWESKE ALWAYS KEPT THE SHAREHOLDERS' INTERESTS FIRST MR. LEVANDER SAID MR. KAWESKE WASN'T AS CLOSE TO MR. KHAN AS OTHER INVESCO FUND MANAGERS WERE INDEED INVESCO'S STRATEGIC PORTFOLIOS TECHNOLOGY FUND MANAGED BY DAN LEONARD CONTINUES TO HOLD STOCKS IN ITS PORTFOLIO FIRST INTRODUCED TO INVESCO BY MR. KHAN ACCORDING TO INVESCO'S MR. PAYNE HOWEVER MR. PAYNE SAID WE AS A FIRM HAVE NOT DONE BUSINESS WITH RAFI KHAN FOR AT LEAST THE LAST THREE MONTHS MR. PAYNE ADDED THAT WE HAVE ABSOLUTELY NO INFORMATION THAT ANY OTHER PORTFOLIO MANAGER HAS VIOLATED OUR CODE OF CONDUCT MR. KAWESKE WHO SPECIALIZED IN HEALTH CARE AND BIOTECHNOLOGY STOCKS ALSO SEEMED TO HAVE A CLOSE RELATIONSHIP WITH ANOTHER STOCK PROMOTER DAVID BLECH MR. BLECH IS THE CHAIRMAN OF D. BLECH AND COMPANY A NEW YORK BROKERAGE FIRM THAT SPECIALIZES IN FINANCING BIOTECHNOLOGY COMPANIES AS OF OCTOBER THIRTY FIRST MR. KAWESKE'S FUNDS OWNED SEVERAL STOCKS SPONSORED BY D. BLECH LAST YEAR MR. KAWESKE'S SON JOHN KAWESKE JUNIOR WORKED AT D. BLECH AS A VICE PRESIDENT OF INVESTMENTS AS PREVIOUSLY REPORTED S. E. C. ENFORCEMENT INVESTIGATORS ARE LOOKING AT WHETHER MR. BLECH MAY HAVE VIOLATED SECURITIES LAWS BY BESTOWING CHEAP STOCK ON MONEY MANAGERS AND OTHERS PRIOR TO PUBLIC OFFERINGS IN THE PAST MR. BLECH SOLD CHEAP STOCK AND WARRANTS TO BROKERS AND INFLUENTIAL WALL STREET EXECUTIVES WHO THEN HAD A VESTED INTEREST IN PROMOTING HIS DEALS TO INVESTORS INVESCO'S MR. PAYNE SAID NOBODY KNEW THAT MR. KAWESKE'S SON WORKED FOR BLECH HE SAID THAT QUOTE IF AS A RESULT OF KAWESKE'S SON GOING TO WORK FOR BLECH THERE IS EVIDENCE THAT OUR FUNDS BOUGHT DEALS THAT WOULD BE VERY SERIOUS QUOTE MR. LEVANDER SAID THAT MR. KAWESKE HAD DISCLOSED HIS SON'S EMPLOYMENT TO INVESCO THE AGREEMENT WAS THAT INVESCO WOULDN'T COMPENSATE HIS SON IN ANY WAY FOR INVESCO PURCHASES OF BLECH SPONSORED DEALS MR. LEVANDER SAID MR. KAWESKE ACCEPTED ONLY ONE BLECH SPONSORED STOCK ON BEHALF OF HIS FUNDS DURING THE TIME HIS SON WORKED AT D. BLECH REJECTING FOUR OTHERS MR. KAWESKE SENIOR NEVER PERSONALLY INVESTED IN A BLECH DEAL MR. LEVANDER SAID THE PERFORMANCE OF MR. KAWESKE'S FUNDS HAS BEEN HURT BY A GENERAL DECLINE IN THE PRICES OF MEDICAL AND BIOTECHNOLOGY STOCKS PEOPLE CLOSE TO MR. KAWESKE SAY HE RECENTLY INDICATED TO INVESCO'S MANAGEMENT THAT HE WAS PLANNING TO LEAVE THE FIRM INDIVIDUALS WHO KNOW HIM SAY HE BELIEVES THAT THE FIRM FIRED HIM BECAUSE IT WAS ANGRY ABOUT HIS IMPENDING DEPARTURE BUT MR. HESSER INVESCO'S CHAIRMAN SAID THE FIRING IS NOT A VENDETTA AGAINST KAWESKE MR. PAYNE THE GENERAL COUNSEL SAID THE FIRM DISCOVERED THE ALLEGED TRADING VIOLATIONS DURING AN ONGOING REVIEW OF OUR EMPLOYEES' PERSONAL SECURITIES TRANSACTIONS MR. PAYNE SAID INVESCO HAS SO FAR EXAMINED TWO YEARS WORTH OF MR. KAWESKE'S PERSONAL TRADES AND IS PLANNING TO CONTINUE ITS INVESTIGATION ANOTHER SLOW STEADY MOVE HIGHER BY SMALL COMPANY STOCKS WAS OVERSHADOWED BY A SECOND STRAIGHT RECORD CLOSE BY THE DOW JONES INDUSTRIAL AVERAGE BUT OBSERVERS SAID NOT TO COUNT SMALLER STOCKS OUT QUOTE SMALL STOCKS HAD THAT TERRIFIC RUN FROM APRIL TO OCTOBER AND THE DOW INDUSTRIALS KIND OF TRUDGED FORWARD QUOTE SAID ALFRED E. GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT A. G. EDWARDS AND SONS INCORPORATED A LITTLE SLUGGISHNESS HERE IS UNDERSTANDABLE AND NORMAL THE RUSSELL TWO THOUSAND INDEX WHICH TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES EKED OUT A ZERO POINT THREE ONE POINT OR ZERO POINT ONE TWO PERCENT GAIN TO END AT TWO HUNDRED FIFTY EIGHT POINT THREE THREE JUST ONE POINT EIGHT FOUR POINTS OR ZERO POINT SEVEN ONE PERCENT FROM ITS RECORD OF TWO HUNDRED SIXTY POINT ONE SEVEN SET NOVEMBER SECOND NASDAQ STOCKS CHURNED A BIT IN A NARROW RANGE BUT THE COMPOSITE INDEX CHALKED UP TWO POINT THREE SIX POINTS OR ZERO POINT THREE ZERO PERCENT TO SEVEN HUNDRED EIGHTY POINT FOUR ONE ONLY SIX POINT NINE NINE POINTS OR ZERO POINT EIGHT NINE PERCENT FROM ITS RECORD CLOSING HIGH HIT OCTOBER FIFTEENTH NASDAQ ADVANCERS BEAT RETREATERS ONE THOUSAND SIX HUNDRED THIRTY FOUR TO ONE THOUSAND FOUR HUNDRED THIRTY BUT THE INDUSTRIALS CLIMBED FIVE POINT OH SIX POINTS OR ZERO POINT ONE THREE PERCENT TO THREE THOUSAND EIGHT HUNDRED THREE POINT EIGHT EIGHT BREAKING THE RECORD SET WEDNESDAY AND BUSTING THROUGH THE THREE THOUSAND EIGHT HUNDRED BARRIER FOR THE FIRST TIME INDEED TODAY'S NEW YORK STOCK EXCHANGE RALLY WAS POWERED BY ECONOMICALLY SENSITIVE ISSUES WITH BIG BOARD ADVANCERS BARELY SCRAPING PAST DECLINERS SOME FEEL THIS NARROW BASED STRENGTH MIGHT NOT BE SUSTAINABLE NASDAQ NATIONAL MARKET ROSE SLIGHTLY TO TWO HUNDRED NINETY SIX MILLION FIVE HUNDRED THIRTEEN THOUSAND THREE HUNDRED THIRTY SEVEN SHARES FROM TWO HUNDRED NINETY FIVE MILLION ONE HUNDRED TWENTY EIGHT THOUSAND THREE HUNDRED SHARES WEDNESDAY TOTAL VOLUME FELL BACK A BIT TO THREE HUNDRED FORTY NINE MILLION TWO HUNDRED SIX THOUSAND SHARES FROM TWO HUNDRED FORTY NINE MILLION EIGHT HUNDRED EIGHTY THOUSAND THREE HUNDRED WEDNESDAY IN THE MEDICAL RELATED GROUP MCGAW AN IRVINE CALIFORNIA PRODUCER AND DISTRIBUTOR OF INTRAVENOUS SOLUTIONS AND ASSEMBLIES SURGED FOUR AND ONE HALF OR FORTY TWO PERCENT TO FIFTEEN AND ONE QUARTER LATE WEDNESDAY IVAX TRADED ON THE AMERICAN STOCK EXCHANGE SAID IT HAS ENTERED INTO A DEFINITIVE MERGER AGREEMENT TO BUY MCGAW FOR ABOUT FOUR HUNDRED FORTY MILLION DOLLARS SEVERAL WAVES OF GOOD NEWS CAUSED MONARCH CASINO AND RESORT TO RALLY TWO TO ELEVEN AND ONE QUARTER THE COMPANY SAID REVENUE ROSE TWENTY SIX PERCENT FOR THE FOURTH QUARTER AND SIXTEEN PERCENT FOR THE FULL YEAR BASED ON A PRELIMINARY REVIEW MONARCH ALSO SAID IT WILL EXPAND ITS CLARION HOTEL CASINO IN RENO NEVADA SEPARATELY THE COMPANY SAID THE CITY OF GARY INDIANA AGREED TO ENDORSE DUNES MARINA RESORT AND CASINOS INCORPORATED A MAJORITY OWNED SUBSIDIARY OF MONARCH AS ONE OF TWO CO DEVELOPERS OF GAMING FACILITIES IN GARY SUBJECT TO ADDITIONAL APPROVALS A DISAPPOINTING NINETEEN NINETY FOUR EARNINGS OUTLOOK TOOK DOWN UNITED STATES BANKNOTE N. Y. S. E. ONE AND THREE QUARTERS TO FOUR AND THREE EIGHTHS THE NEW YORK DESIGNER AND PRODUCER OF DOCUMENTS OF VALUE SAID A LOSS OF STAMP BUSINESS FROM THE U. S. POSTAL SERVICE COULD REDUCE EARNINGS BY ABOUT FIFTEEN CENTS A SHARE THIS YEAR STRUCTURAL DYNAMICS RESEARCH RETREATED ONE AND ONE EIGHTH TO THIRTEEN AND THREE QUARTERS MORGAN STANLEY AND HANCOCK INSTITUTIONAL EQUITY SERVICES LOWERED THEIR RATINGS ON THE SOFTWARE COMPANY IN MILFORD OHIO TO HOLD FROM BUY THE BROKERAGE FIRMS CITED THE COMPANY'S ANNOUNCEMENT WEDNESDAY THAT IT EXPECTS FOURTH QUARTER REVENUE AND EARNINGS TO FALL SHORT OF ANALYSTS' EXPECTATIONS SOME SMALLER INTEREST RATE SENSITIVE STOCKS FELL BACK DESPITE A BOND RALLY FOR EXAMPLE ANCHOR BANCORP WISCONSIN MADISON WISCONSIN WAS DOWN ONE HALF TO TWENTY TWO AND THREE QUARTERS FIRST INDIANA CORPORATION INDIANAPOLIS WAS OFF ONE QUARTER TO TWENTY THREE AND ONE QUARTER AND CENTERBANK LOST ONE QUARTER TO ELEVEN AND ONE QUARTER BUT CALIFORNIA FEDERAL BANK N. Y. S. E. ROSE ONE AND ONE QUARTER TO SIXTEEN AND ONE EIGHTH THE COMPANY SAID LATE WEDNESDAY THAT IT HAS HIRED SMITH BARNEY SHEARSON INCORPORATED TO SELL ITS SOUTHEAST DIVISION TO ENABLE IT TO CONCENTRATE ITS OPERATIONS IN CALIFORNIA AND NEVADA AND FOCUS ALL EFFORTS ON MAXIMIZING ITS OPERATING PROFITS IN THAT REGION ALSO CALIFORNIA FEDERAL SAID IT PLANS TO RAISE TWO HUNDRED DOLLARS TO THREE HUNDRED MILLION DOLLARS IN NEW CAPITAL THROUGH THE SALE OF PREFERRED STOCK AND A RIGHTS OFFERING TO ITS STOCKHOLDERS RETAILERS WERE IN THE SPOTLIGHT AND MANY FELL FOLLOWING DISAPPOINTING DECEMBER RESULTS FOR STORES OPEN AT LEAST A YEAR SOLO SERVE PLUMMETED SEVEN EIGHTHS TO THREE AND ONE EIGHTH THE COMPANY IN SAN ANTONIO TEXAS SAID DECEMBER SAME STORE SALES FELL FIVE POINT SIX PERCENT WHILE SAME STORE SALES FOR THE FORTY EIGHT WEEKS ENDED JANUARY FIRST DECLINED FIVE POINT SEVEN PERCENT OTHER COMPANIES THAT SHOWED DECLINES AFTER REPORTING A DECREASE IN SAME STORE SALES WERE MERRY GO ROUND ENTERPRISES JOPPA MARYLAND DOWN ONE HALF TO THREE AND ONE HALF AND ANNTAYLOR STORES NEW YORK DOWN ONE TO TWENTY FOUR AND SEVEN EIGHTHS BOTH ARE LISTED ON THE N. Y. S. E. NASDAQ TRADED DRESS BARN STAMFORD CONNECTICUT SAGGED ONE TO TWELVE AND SEVEN EIGHTHS NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED ONE HUNDRED TWENTY ONE WHILE TWENTY THREE HIT NEW LOWS OBSERVERS SUCH AS A. G. EDWARDS'S GOLDMAN HOWEVER THINK THE RUSSELL TWO THOUSAND AND THE NASDAQ COMPOSITE WILL BOTH MAKE NEW HIGHS SOON IT'S NOT LIKE THEY'RE WALLFLOWERS HE SAID SMALLER STOCKS ARE STILL IN A STRONG BULL MARKET ANALYSTS NOTE HOWEVER THAT IT'S A SELECTIVE MARKET RECENT TRENDS HAVE SHOWN BUYERS THROWING MONEY AT A VARIETY OF STOCKS ON A CASE BY CASE BASIS RATHER THAN BUILDING UP ANY ONE SECTOR QUOTE OUR MARKET DOESN'T HAVE TO ACT GREAT TO TRADE WELL QUOTE SAID JIM WHIPPLE SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS INCORPORATED WHIPPLE ADDED THAT FIRST OF THE YEAR EUPHORIA IS SPURRING MARKET PLAYERS TO PUT THEIR MONEY INTO THE MOST EASILY ACCESSIBLE STOCKS THE LARGE CYCLICALS QUOTE IDEOLOGY QUOTE THE ELDERLY SOVIET EMIGRE AVIGDOR BARKOV DECLARES IN NATHAN SHAHAM'S PENETRATING NEW NOVEL QUOTE BONE TO THE BONE QUOTE GROVE PRESS THREE HUNDRED FORTY FIVE PAGES TWENTY TWO DOLLARS QUOTE HAS PLAYED AN IMPORTANT ROLE IN MY LIFE QUOTE MR. SHAHAM MAKES THAT ABUNDANTLY CLEAR IN THIS BOOK WHICH TAKES THE FORM OF A JOURNAL CUM MEMOIR BEGUN BY AVIGDOR AFTER ARRIVING IN ISRAEL THOUGH HE HAS WORKED AS AMONG OTHER THINGS A MINER PRINTER ROAD BUILDER FARMHAND SHEPHERD COWBOY AND LUMBERJACK AND THOUGH HE HAS LOVED TWO WOMEN AND FATHERED A CHILD BY EACH OF THEM AVIGDOR'S LIFE HAS CENTERED NOT ON THESE OCCUPATIONS AND ATTACHMENTS BUT ON MARXIST POLITICS BORN WITH THE CENTURY AVIGDOR CAME OF AGE ABOUT THE TIME OF THE RUSSIAN REVOLUTION INSPIRED IN HIS YOUTH BOTH BY THE ZIONISM HE SHARED WITH HIS FATHER A TALMUDIC SCHOLAR AND BY A ZEALOUS DEVOTION TO INTERNATIONAL COMMUNISM HE LEFT HIS NATIVE UKRAINE FOR PALESTINE THERE HE WAS ACTIVE IN THE COMMUNIST PARTY AND THE REVOLUTIONARY UNDERGROUND BUT WHEN HE CAME TO RECOGNIZE THE CONFLICT BETWEEN MARXISM AND JEWISH NATIONALISM AND TO FEEL THAT SOVIET RUSSIA WAS A BRAVE NEW WORLD AND ZIONISM A TOOL OF WESTERN IMPERIALISTS HE RETURNED HOME ONLY TO SPEND MOST OF THE STALINIST PERIOD EITHER IN PRISON FOR BEING INSUFFICIENTLY ORTHODOX OR IN THE RED ARMY THERE IS NO CHRONOLOGICAL ORDER TO AVIGDOR'S RECOLLECTIONS HE RECOUNTS HIS MEMORIES HAPHAZARDLY AS THEY ARE TRIGGERED BY CURRENT EVENTS HIS MANNER IS BRISK BLUNT COLLOQUIAL AND DESPITE HIS AVOWALS OF PASSION ODDLY DISPASSIONATE THOUGH NO LONGER AN IDEALIST HE SEES LIFE NEITHER THROUGH A TRAGIC NOR AN ABSURDIST LENS HE BELIEVES IN TRUTH IN UNDERSTANDING HIS PAST IN SERVING HUMANITY'S GREATER GOOD YET HE DOESN'T SEEM OVERBURDENED BY GUILT OVER HIS LONGTIME SUPPORT OF TOTALITARIANISM A DOCUMENTARY MAKER SHELVES A PLANNED PROJECT ABOUT HIS LIFE BECAUSE THE CAMERA LIKES SHARP CONTRADICTIONS VIVID COLORS CLOSED CIRCLES WHILE FOR AVIGDOR LIFE IS A MATTER OF LOOSE ENDS MORAL AMBIGUITIES SHADES OF GRAY TO HIS MIND INDEED THE HISTORY OF SOVIET COMMUNISM IS A STORY NOT OF DEMONS AND SAINTS BUT OF HUMAN SUBTLETIES AND UNCERTAINTIES WHEN HE ADDRESSED AN ISRAELI AUDIENCE ABOUT THE LEADERS OF THE SOVIET DEMOCRACY MOVEMENT A NUMBER OF MY LISTENERS WERE DISPLEASED THAT I HADN'T GIVEN THEM HALOS BUT HAD PORTRAYED THEM AS MODEST UNASSUMING PEOPLE WHOSE CELEBRATED HEROISM GREW OUT OF AN INABILITY AT SOME POINT IN THEIR LIVES TO ACCEPT SOME PIECE OF ARBITRARY INJUSTICE OR SOME TOO BLATANT LIE AVIGDOR QUOTES A FRIEND AS SAYING THAT SHAKESPEARE COULD NEVER HAVE WRITTEN A SOVIET TRAGEDY BECAUSE IT WOULD HAVE BEEN BEYOND THE POWER OF HIS IMAGINATION YET WHAT MR. SHAHAM WHO HAS LIVED HIS ENTIRE LIFE ON A KIBBUTZ HAS WRITTEN IS JUST SUCH A TRAGEDY OF A MAN WHOSE MISGUIDED IDEOLOGICAL FERVOR MADE HIM AN INSTRUMENT OF TYRANNY DROVE HIM TO REJECT HIS FAMILY OBLIGATIONS AND HAS LEFT HIM IN HIS OLD AGE STRUGGLING TO FORGE NEW TIES TO CHILDREN AND GRANDCHILDREN TO WHOM HE IS A STRANGER AVIGDOR IS ALSO ONE MIGHT ADD STRUGGLING TO COME TO TERMS WITH THE GOD OF HIS FATHERS ABOUT WHOM HE SAYS ALL MY LIFE I HAVE MAINTAINED THAT HE DOES NOT EXIST AND BEHAVED AS IF HE DOES THERE IS A DEEP IRONY IN THIS FOR IN FACT AVIGDOR THE MARXIST ZEALOT WAS LIKE HIS TALMUDIST FATHER A MAN PROPELLED BY FAITH EVEN THOUGH HIS OWN PARTICULAR FAITH WAS ONE THAT SOUGHT TO EXTINGUISH THE VERY IDEA OF A SPIRITUAL REALM AND A SUPREME BEING AS A YOUNG MEMBER OF THE PARTY FAITHFUL IN PALESTINE FOR INSTANCE HE FELT THAT THE REVOLUTION HAD CHOSEN HIM AND HIS COMRADES TO BE THE JESUS OF OUR TIMES HIS RETURN TO RUSSIA WAS MOTIVATED BY A FRIEND WHO QUOTE TALKED MARXISM IN THE LANGUAGE OF THE PROPHETS QUOTE ORIGINALLY PUBLISHED IN HEBREW IN NINETEEN EIGHTY ONE AND RENDERED INTO A VIGOROUS ENGLISH BY DALYA BILU BONE TO THE BONE IS AN IMPRESSIVELY IMAGINED STUDY OF A MAN WHO COMES OFF AS A REPRESENTATIVE TWENTIETH CENTURY FIGURE WITHOUT EVER CEASING TO BE A PLAUSIBLE INDIVIDUAL THE BOOK IS AT ITS MOST EFFECTIVE WHEN IT FOCUSES ON THE THREAT TO CIVILIZED VALUES POSED BY IDEOLOGY THAT DISCOUNTS THE INDIVIDUAL AND VIEWS HUMAN BEINGS AS MEANS OF PRODUCTION COLD SHIVERS RUN DOWN MY SPINE WRITES AVIGDOR WHEN I REMEMBER THINGS THAT I MYSELF SAID IN THOSE YEARS OF PASSIONATE ENTHUSIASM IS IT REALLY POSSIBLE FOR A STUPID MOB OF GREEDY KULAKS TO HOLD BACK THE GALLOPING CHARIOT OF HISTORY AND THAT WAS ENOUGH TO MAKE ME INDIFFERENT TO THE FATE OF MILLIONS AVIGDOR HAS A COUPLE OF REASONS FOR WRITING HIS MEMOIR ONE OF THEM HE EXPLAINS IS A SOCIALIST BRED SLAVERY TO DOCUMENTS AND ONE IS HIS RECOGNITION OF THE POWER OF WORDS AT THE OLD AGE HOME TO WHICH HE EVENTUALLY MOVES HE'S ASSIGNED TO A ROOM THAT FORMERLY BELONGED TO A POLISH JUDGE READING THROUGH THE MAN'S LIFETIME OF CORRESPONDENCE AVIGDOR COMES TO FEEL THAT HE KNOWS HIM INTIMATELY I COULD HAVE LIVED THE REST OF MY LIFE WITHOUT EVER KNOWING THAT HE HAD EXISTED AVIGDOR NOTES QUOTE AND YET NOW THAT I AM BREATHING HIS LONELINESS INTO MY LUNGS I CANNOT BANISH HIM FROM MY ROOM QUOTE MANY A READER OF BONE TO THE BONE MAY FIND AVIGDOR EQUALLY DIFFICULT TO BANISH THE DOW JONES INDUSTRIAL AVERAGE BROKE THROUGH THE THREE THOUSAND EIGHT HUNDRED LEVEL TO ITS SECOND CONSECUTIVE RECORD IN HEAVY TRADING BOND PRICES SURGED AND THE DOLLAR WAS MIXED AFTER CLIMBING MORE THAN FOURTEEN POINTS THE INDUSTRIAL AVERAGE RETREATED A BIT TO END WITH A FIVE POINT OH SIX POINT GAIN TO A RECORD THREE THOUSAND EIGHT HUNDRED THREE POINT EIGHT EIGHT STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX EDGED DOWN ZERO POINT FOUR THREE TO FOUR HUNDRED SIXTY SEVEN POINT ONE TWO AND THE NASDAQ COMPOSITE INDEX ADDED TWO POINT THREE SIX TO SEVEN HUNDRED EIGHTY POINT FOUR ONE THE DOW INDUSTRIALS BOLTED THROUGH THE THREE THOUSAND EIGHT HUNDRED LEVEL AFTER THE OPENING BELL CARRIED BY A VIGOROUS ADVANCE IN BOND PRICES INVESTORS CONTINUED TO FAVOR CYCLICAL STOCKS DRIVING THE ECONOMICALLY SENSITIVE DOW JONES TRANSPORTATION AVERAGE TO ITS SECOND STRAIGHT NEW HIGH THE TRANSPORTS SOARED TWENTY THREE POINT THREE EIGHT TO A RECORD ONE THOUSAND EIGHT HUNDRED TWO POINT TWO ONE DURING THE PAST TWO DAYS THE AVERAGE HAS GAINED TWO POINT SEVEN PERCENT TRADING VOLUME ON THE NEW YORK STOCK EXCHANGE YESTERDAY WAS THE NINTH HEAVIEST IN HISTORY ANALYSTS SAID LARGE INSTITUTIONAL INVESTORS ARE RE ENTERING THE MARKET READJUSTING PORTFOLIOS AS THEY OFTEN DO AT THE BEGINNING OF A YEAR BOND PRICES JUMPED EARLY AFTER LABOR SECRETARY ROBERT REICH ESTIMATED IN A TELECONFERENCE THAT TODAY'S EMPLOYMENT REPORT WOULD SHOW A SMALLER THAN EXPECTED GROWTH IN JOBS AFTER THE MARKET MISINTERPRETED HIS REMARK AS FACT THE BUREAU OF LABOR STATISTICS SAID IT WAS JUST AN EDUCATED GUESS AND NOT BASED ON ACTUAL FIGURES WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST ZERO POINT ZERO NINE TO ONE HUNDRED ELEVEN POINT SIX FIVE STOCK PRICES WERE MIXED VOLUME TOTALED THREE HUNDRED SIXTY THREE POINT FOUR MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND SEVENTY SIX ISSUES ROSE AND ONE THOUSAND FIFTY FOUR FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FOUR FOUR FIVE MARKS AND ONE HUNDRED TWELVE POINT SIX FIVE YEN COMPARED WITH ONE POINT SEVEN THREE NINE FIVE MARKS AND ONE HUNDRED TWELVE POINT NINE OH YEN WEDNESDAY LAWYERS FOR NEWS AND RESEARCH ORGANIZATIONS STEPPED UP PRESSURE FOR THE RELEASE OF INDEPENDENT PROSECUTOR LAWRENCE WALSH'S LONG AWAITED REPORT ON THE IRAN CONTRA AFFAIR A THREE JUDGE PANEL SIGNALED LAST MONTH THAT THE FINDINGS WOULD BE RELEASED SOON WITH ONLY MINOR DELETIONS BUT SO FAR THERE HAS BEEN NO ACTION WHILE THE COURT CONSIDERS SEALED MOTIONS ON BEHALF OF FORMER REAGAN ADMINISTRATION OFFICIALS SEEKING TIME TO APPEAL THE ORDER TO THE SUPREME COURT ATTORNEYS FOR THE SOCIETY OF PROFESSIONAL JOURNALISTS REPORTERS COMMITTEE FOR FREEDOM OF THE PRESS AND THE NATIONAL SECURITY ARCHIVE COUNTERED YESTERDAY BY ASKING THE COURT TO MAKE THESE MOTIONS PUBLIC TO FORCE AT LEAST A MORE PUBLIC AIRING OF THE JUSTIFICATION FOR THE DELAY THE ACTION CAME AS LEE HAMILTON D. INDIANA CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE WROTE TO THE PANEL ASKING FOR RELEASE OF THE REPORT QUOTE RELEASING THIS MATERIAL WILL CONTRIBUTE GREATLY TO PUBLIC UNDERSTANDING OF THE AFFAIR QUOTE SAID REPRESENTATIVE HAMILTON WHO SERVED AS CHAIRMAN OF THE SPECIAL HOUSE IRANCONTRA INVESTIGATIVE COMMITTEE IN NINETEEN EIGHTY SEVEN SUPPRESSION OF THIS MATERIAL COULD DAMAGE RATHER THAN PROTECT INDIVIDUAL REPUTATIONS AND THE PUBLIC RECORD TELEPANEL SYSTEMS INCORPORATED TORONTO SAID IT WON A CONTRACT TO INSTALL ITS ELECTRONIC SHELF LABELING SYSTEM IN AS MANY AS SIXTY GROCERY STORES OWNED BY LOBLAW COMPANIES OF TORONTO THE CONTRACT VALUED AT ABOUT THREE MILLION DOLLARS U. S. OVER TWO YEARS MARKS TELEPANEL'S FIRST MAJOR CONTRACT FOR ITS PRODUCT CURRENTLY TELEPANEL'S SYSTEM IS INSTALLED IN EIGHTEEN STORES IN THE U. S. AND CANADA INCLUDING EIGHT LOBLAW OUTLETS THE TELEPANEL SYSTEM USES RADIO TRANSMITTERS TO SEND DATA TO ELECTRONIC DISPLAY TAGS ON STORE SHELVES PRODUCT PRICE CHANGES ARE MADE AT A CENTRAL COMPUTER LINKED TO THE STORE'S SCANNING SYSTEM ENSURING THAT THE PRICE MARKED IS THE PRICE CHARGED THE WORLD IS GETTING SMALLER WHETHER INVESTORS LIKE IT OR NOT THEIR WALLETS ARE INFLUENCED NOT ONLY BY CLOAKROOM CONVERSATIONS IN WASHINGTON BUT BY BULL SESSIONS IN BRUSSELS THEIR MONTHLY STATEMENTS REFLECT THE POISE OR PANIC ON THE TRADING FLOORS OF TOKYO AND LONDON JUST AS AN QUOTE AMERICAN MADE QUOTE CAR IS INCREASINGLY LIKELY TO CONTAIN PARTS FROM JAPAN OR MEXICO MANY U. S. MUTUAL FUNDS NOW BUY FOREIGN STOCKS AS A MATTER OF COURSE TAKE JANUS FUND FOR EXAMPLE JAMES CRAIG MANAGER OF THE NINE BILLION DOLLAR DENVER BASED FUND IS KNOWN FOR HIS PROWESS AS A PICKER OF U. S. GROWTH STOCKS BUT HE SAYS THE U. S. MARKET IS PICKED OVER I HAVE FOUND WONDERFUL STOCKS IN SWITZERLAND OF JANUS FUND'S TEN BIGGEST STOCK POSITIONS RECENTLY FIVE WERE SWISS IN ADDITION MUTUAL FUNDS SPECIFICALLY CHARTERED TO INVEST OVERSEAS ARE WINNING A BIGGER SHARE OF U. S. INVESTORS' DOLLARS THE MERRILL LYNCH GLOBAL ALLOCATION FUND FOR EXAMPLE FIRST HIT ONE BILLION DOLLARS IN ASSETS AROUND LABOR DAY NINETEEN NINETY TWO ONE YEAR LATER THE FUND CONTAINED FOUR POINT SIX BILLION DOLLARS AND TODAY IT IS CLOSING IN ON SIX BILLION DOLLARS FUND MANAGER BRYAN ISON SAYS THAT A YEAR AGO HE WOULD HAVE CONSIDERED SUCH GROWTH ABSOLUTELY IMPOSSIBLE EVEN INDEX FUNDS FUNDS THAT ATTEMPT TO MIMIC THE PERFORMANCE OF THE OVERALL U. S. STOCK MARKET ARE FEELING A JOLT FROM THE FLOW OF AMERICAN INVESTORS' MONEY ABROAD IN NINETEEN NINETY THREE VANGUARD INDEX TRUST FIVE HUNDRED PORTFOLIO THE U. S.'S LARGEST INDEX FUND WAS UP NINE POINT NINE PERCENT THE THIRD LOWEST RETURN AMONG THE COUNTRY'S TWENTY FIVE BIGGEST STOCK FUNDS ONE REASON OTHER BIG STOCK FUNDS WANDERED FAR AFIELD FROM THE U. S. AND IT PAID OFF MANY OF THE LARGE FUNDS HAVE HAD SUBSTANTIAL BETS INTERNATIONALLY SAYS GEORGE U. SAUTER THE VANGUARD MANAGER WHO RUNS THE INDEX FUND HERE'S WHAT THE MANAGERS OF FIVE OF THE U. S.'S JUMBO FUNDS ARE SAYING AT THE MOMENT ABOUT THE INTERNATIONAL TREND AND OTHER INVESTMENT ISSUES JANUS FUND'S MR. CRAIG SAYS THAT SWISS COMPANIES USED TO BE INDIFFERENT OR EVEN HOSTILE TO U. S. INVESTORS COMPANY OFFICIALS WOULDN'T MEET WITH US EVEN THOUGH WE WERE SHAREHOLDERS HE RECALLS DISCLOSURE OF CORPORATE DEVELOPMENTS AND STRATEGIES WAS SKETCHY BUT ALL OF THAT HAS CHANGED IN THE PAST COUPLE OF YEARS HE SAYS QUOTE COMPANIES IN SWITZERLAND HAVE COME TO REALIZE THE VALUE OF TAPPING THE U. S. MARKET QUOTE THEY NOT ONLY WILL MEET WITH AMERICAN INVESTORS THEY COME TO THE U. S. TO SEEK THEM OUT ENGLISH LANGUAGE VERSIONS OF SWISS ANNUAL REPORTS ARE BECOMING COMMON MR. CRAIG HAS BIG POSITIONS IN A HANDFUL OF SWISS STOCKS INCLUDING ROCHE HOLDING SCHWEIZERISCHER BANKVEREIN CREDIT SUISSE AND SCHWEIZENSCHE BANK GESELLSCHAFT HIS FAVORITE IS SWISS RE WHICH DEALS BOTH IN REINSURANCE HENCE ITS NAME AND CONVENTIONAL INSURANCE SWISS RE HAS BEEN GAINING MARKET SHARE IN EUROPE PARTLY BECAUSE OF RECENT TROUBLES AT LLOYD'S OF LONDON HE SAYS MR. CRAIG IS SKEPTICAL ABOUT THE RECENT TRENDINESS OF STOCKS FROM DEVELOPING COUNTRIES SUCH AS COLOMBIA AND BRAZIL THEY HAVE WORKED GREAT HE SAYS BUT U. S. INVESTORS MAY BOLT IF THE U. S. MARKET RUNS INTO TURBULENCE AND IN MANY CASES THERE'S NO STRONG HOME MARKET TO SUPPORT THESE FAR FLUNG STOCKS AMONG U. S. STOCKS HIS BIGGEST HOLDING IS WAL MART STORES I'VE REBUILT MY WAL MART POSITION AS THE STOCK FELL TO TWENTY FIVE FROM THIRTY FIVE HE SAYS HE THINKS THE SAM'S WAREHOUSE STORE DIVISION WHICH HAD BEEN A WEAK POINT WILL BECOME A STRONG POINT AS TWO MAJOR COMPETITORS COSTCO AND PRICE HAVE MERGED TO FORM PRICE SLASH COSTCO AND A THIRD THE PACE UNIT OF KMART HAS SOLD MANY OF ITS STORES TO WAL MART VANGUARD INDEX THE VANGUARD INDEX TRUST FIVE HUNDRED PORTFOLIO WHICH CLOSELY TRACKS THE PERFORMANCE OF THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX OUTPERFORMED MOST MUTUAL FUNDS IN NINETEEN EIGHTY EIGHT NINETEEN EIGHTY NINE AND NINETEEN NINETY SINCE THEN IT HAS OUTPERFORMED ONLY FORTY FIVE PERCENT TO FORTY SEVEN PERCENT OF THE FIELD THAT'S MOSTLY BECAUSE SMALL STOCKS AND RECENTLY FOREIGN STOCKS HAVE OUTPACED THE BIG U. S. STOCKS IN THE INDEX MR. SAUTER THE FUND'S MANAGER THINKS SMALL STOCKS MIGHT CONTINUE TO DO WELL ACCORDINGLY HE URGES INVESTORS TO CONSIDER A SISTER FUND THE VANGUARD TOTAL STOCK MARKET PORTFOLIO AS FOR FOREIGN STOCKS MR. SAUTER SAYS HE ISN'T AT ALL SURE THAT THEIR RECENT HOT STREAK WILL CONTINUE MANY PEOPLE WHO HOLD EUROPEAN STOCKS EXPECT THAT INTEREST RATES WILL BE LOWERED IN EUROPE THAT WOULD HELP STOCKS ALL RIGHT SAYS MR. SAUTER BUT IT COULD ALSO CAUSE EUROPEAN CURRENCIES TO DECLINE AGAINST THE DOLLAR SHAVING THE FOREIGN PORTFOLIOS' VALUE AFTER TRANSLATION TO DOLLARS THE ARGUMENT FOR INDEXING IS THAT IT IS NEARLY IMPOSSIBLE TO PREDICT IN ADVANCE WHICH MUTUAL FUNDS WILL SHOW ABOVE AVERAGE PERFORMANCE BECAUSE INDEX FUNDS DO VERY LITTLE TRADING OF STOCKS THEY HAVE LOW ADMINISTRATIVE COSTS AND GENERATE RELATIVELY SMALL TAX OBLIGATIONS IN LIGHT OF THAT A CONVENTIONAL FUND NEEDS TO BEAT AN INDEX FUND BY ONE PERCENTAGE POINT EVERY YEAR TO COME OUT EVEN MR. SAUTER SAYS SOUND SMALL THAT'S ACTUALLY HUGE HE SAYS OVER THE TEN YEARS THROUGH DECEMBER NINETEEN NINETY TWO ONLY SIXTEEN FUNDS OUT OF TWO HUNDRED FIVE STUDIED BY VANGUARD MANAGED TO BEAT THE WILSHIRE FIVE THOUSAND A BROAD STOCK MARKET INDEX BY ONE PERCENTAGE POINT A YEAR AND AN INVESTOR MIGHT NOT BE ABLE TO PICK THOSE SIXTEEN FUNDS IN ADVANCE FIDELITY ASSET MANAGER AN ASSET ALLOCATION FUND CHANGES ITS BLEND OF INVESTMENTS STOCKS BONDS AND CASH IN THE U. S. AND ABROAD ACCORDING TO MANAGER ROBERT BECKWITT'S VIEW OF WHERE THE BEST RATIO OF RISK TO REWARD LIES MR. BECKWITT CURRENTLY HAS ABOUT HALF OF HIS STOCK AND BOND PORTFOLIO OUTSIDE THE U. S. FOREIGN INVESTING STILL HAS A LOT OF OPPORTUNITIES HE SAYS ENOUGH TO ENCOURAGE ME TO TAKE MONEY THAT WOULD NORMALLY BE IN THE U. S. AND MOVE IT OVERSEAS HIS FAVORITE FOREIGN STOCK MARKETS NOW ARE BRITAIN AND MEXICO IN BRITAIN HE SAYS QUOTE YOU'VE GOT A GREAT FUNDAMENTAL PICTURE OF LOW INFLATION INTEREST RATES THAT WILL BE LOWERED MORE AND ECONOMIC GROWTH THE MARKET SHOULD BE VERY PLEASANT MEXICO'S CENTRAL BANK HAS LARGELY WON ITS LONGTIME WAR AGAINST RAMPANT INFLATION MR. BECKWITT SAYS SO IT CAN AFFORD TO TAKE ITS FOOT OFF THE BRAKE AND ALLOW THE COUNTRY'S MONEY SUPPLY TO GROW MORE FREELY ALSO HE SAYS MEXICO IS ONE OF THE CHEAPER MARKETS AROUND WITH MANY STOCKS SELLING FOR LESS THAN TEN TIMES THE COMPANIES' EARNINGS THE U. S. STOCK MARKET HE SAYS ISN'T CHEAP BUT HAS SOME ATTRACTIVE COMPANIES WITHIN IT NOW THAT EMPLOYERS ARE LIKELY TO HAVE TO PAY MORE FOR THEIR WORKERS' HEALTH CARE HE THINKS COMPANIES WILL TRY TO REPLACE LABOR WITH CAPITAL SO HE'S BUYING COMPUTER EQUIPMENT MAKERS SUCH AS COMPAQ COMPUTER INTERNATIONAL BUSINESS MACHINES CISCO SYSTEMS AND CABLETRON SYSTEMS HE ALSO LIKES JUNK BONDS CALLING THEM THE CHEAPEST FINANCIAL ASSET IN THE UNITED STATES THOUGH HE CAUTIONS THEY SHOULD BE BOUGHT ONLY AS PART OF A DIVERSIFIED PORTFOLIO MR. ISON OF MERRILL LYNCH GLOBAL ALLOCATION FUND IS CARRYING A HEAVIER THAN USUAL CASH POSITION AND IS LIGHTER THAN USUAL IN STOCKS ONLY THIRTY SEVEN PERCENT I DON'T HAVE A STRONG FEELING THAT STOCKS WILL DECLINE MR. ISON SAYS RATHER HIS CAUTIOUS STANCE STEMS FROM WHAT HE CALLS QUOTE A DISTINCT SHORTAGE OF BARGAINS QUOTE IN STOCK MARKETS AROUND THE GLOBE FOR THE PAST COUPLE OF YEARS WE GENUINELY DID PERCEIVE THERE TO BE BARGAINS IN EUROPEAN STOCKS HE SAYS I HAVE TO SAY THAT'S LESS TRUE TODAY BECAUSE EUROPEAN STOCK MARKETS HAVE BEEN RALLYING SINCE THE FALL OF NINETEEN NINETY TWO HE BELIEVES INVESTORS HAVE PAID IN ADVANCE FOR A EUROPEAN ECONOMIC RECOVERY THAT'S STILL ON THE HORIZON IN THE U. S. PHILIP MORRIS IS MR. ISON'S BIGGEST STOCK POSITION THE STOCK FELL FROM A PEAK OF SEVENTY SEVEN POINT SIX TWO FIVE DOLLARS TO A TROUGH OF FORTY FIVE DOLLARS LAST YEAR AS THE COMPANY SLASHED THE PRICE OF MARLBORO CIGARETTES AFTER THE HIT IT TOOK IT SIMPLY GOT TO PRICES WHERE WE FELT THE MARKET WAS PAYING CLOSE TO NOTHING FOR THE DOMESTIC TOBACCO BUSINESS RECALLS MR. ISON AT ITS CURRENT PRICE OF FIFTY EIGHT POINT THREE SEVEN FIVE DOLLARS HE CALLS PHILIP MORRIS A REASONABLE HOLD ALSO BATTERED LAST YEAR WERE THE DRUG STOCKS MR. ISON MOVED INTO THE SEGMENT IN THE SPRING AND IS HOLDING BRISTOL MYERS SQUIBB SMITHKLINE BEECHAM MERCK AND AMERICAN HOME PRODUCTS FINANCIAL STOCKS ALSO INTEREST MR. ISON IN THE PAST FOUR MONTHS THESE STOCKS HAVE FALLEN AS THE MARKET GOT A WHIFF OF HIGHER INTEREST RATES MR. ISON DOES BELIEVE THAT HIGHER RATES ARE A THREAT BUT IN HIS VIEW STOCKS SUCH AS CHEMICAL BANKING FIRST UNION AND STUDENT LOAN MARKETING ASSOCIATION QUOTE SIMPLY GOT TO PRICES THAT WERE ATTRACTIVE QUOTE WOLODYMYR WRONSKYJ DREYFUS FUND'S MANAGER THINKS NINETEEN NINETY FOUR WILL BE A DECENT YEAR IN THE STOCK MARKET BUT NOTHING SPECTACULAR THE U. S. ECONOMY WILL PROBABLY CONTINUE AT THE SAME PACE AS IN NINETEEN NINETY THREE HE SAYS IT IS DIFFICULT TO SEE A MUCH STRONGER PICKUP FOR THAT YOU WOULD NEED BETTER FOREIGN ECONOMIES HE ALSO FIGURES THAT HIGHER TAXES WILL RETARD U. S. GROWTH MR. WRONSKYJ IS MAKING A BIG BET ON THE AUTO INDUSTRY INCLUDING CHRYSLER FORD MOTOR T. R. W. WHICH MAKES AIR BAGS EATON STRONG IN TRUCK PARTS AND VARITY ANTISKID BRAKES HIS FAVORITE IS CHRYSLER WHICH HE SAYS IS ROLLING OUT GOOD PRODUCTS THAT PEOPLE ARE BUYING AMONG STOCKS THAT ARE QUOTE SOMEWHAT BEATEN UP QUOTE HE FAVORS COMPUTER MAKER HEWLETT PACKARD AND CHIP MAKER INTEL HE IS ALSO FOND OF DIAL CONSOLIDATED RAIL AND COLGATE PALMOLIVE MAJOR LEAGUE BASEBALL OWNERS FELL ONE VOTE SHORT OF ENACTING A REVENUE SHARING PLAN FOLLOWING A SEVEN HOUR MEETING HERE TWENTY OF THE TWENTY EIGHT TEAMS BACKED A PLAN PROPOSED BY THE PLAYER RELATIONS COMMITTEE THE OWNERS' LABOR ARM SHORT OF THE SEVENTY FIVE PERCENT MAJORITY REQUIRED FOR PASSAGE THE OWNERS WILL TRY AGAIN AT THEIR NEXT ROUND OF MEETINGS SCHEDULED TO BEGIN IN FORT LAUDERDALE FLORIDA JANUARY SEVENTEENTH QUOTE I'D BE A LIAR IF I DIDN'T SAY I'D HOPED TO COME TO A CONCLUSION AND GET ON TO THE MAIN EVENT OF NEGOTIATING WITH THE UNION QUOTE SAID RICHARD RAVITCH HEAD OF THE COMMITTEE BUT HE ADDED I'M STILL AN OPTIMIST THE OLD LABOR CONTRACT EXPIRED DECEMBER THIRTY FIRST THE OWNERS MUST APPROVE A REVENUE SHARING PLAN TO PUT FORTH A SALARY CAP PROPOSAL TO THE PLAYERS IN ADDITION SMALL MARKET CLUBS THAT ARE STRAPPED FOR REVENUE HAVE PRESSED FOR AID FROM BIG MARKET TEAMS AS THE REVENUE GAP BETWEEN THE TWO HAS GROWN THE BIG MARKET TEAMS OFFERED THEIR OWN REVENUE SHARING MEASURE WHICH GARNERED ELEVEN VOTES IT PROPOSED TO TRIPLE THE AMOUNT OF MONEY NOW TRANSFERRED AMONG CLUBS ACCORDING TO BOSTON RED SOX GENERAL PARTNER JOHN HARRINGTON CURRENTLY REVENUE SHARING IS RESTRICTED TO SPLITTING GATE RECEIPTS AND CABLE T. V. INCOME EUROPEAN UNION RESIDENTS CONTINUE TO GET HASSLED AT BORDERS A YEAR AFTER THE TWELVE COUNTRY TRADE BLOC BECAME A UNIFIED MARKET A CITIZEN RIGHTS LOBBY SAID EURO CITIZEN ACTION SERVICE REPORTED THAT TRAVELERS IN THE FORMER EUROPEAN COMMUNITY STILL FACE BARRIERS TO THEIR FREEDOM OF MOVEMENT CUSTOMS POSTS REMAIN IN PLACE TRAIN FERRY AND AIRPLANE PASSENGERS ARE ASKED TO SHOW PASSPORTS AND NON E. U. NATIONALS WHO LEGALLY RESIDE IN ONE MEMBER STATE OFTEN MUST GET A VISA TO VISIT ANOTHER WORSE STILL THE GROUP SAID THE NINE E. U. STATES THAT PLEDGED UNDER THE TREATY TO ABOLISH INTERNAL BORDER CONTROLS MISSED THREE DEADLINES LAST YEAR AND SEEM LIKELY TO BREAK THEIR LATEST PLEDGE TO PUT THE ACCORD INTO EFFECT BY FEBRUARY FIRST THUS THE LOBBY REVIVED ITS CAMPAIGN TO PRESS FOR A FRONTIERLESS BLOC BY GATHERING MORE ANECDOTAL EVIDENCE OF TRAVELERS' TANGLES AT THE BORDER SUCH PROBLEMS STEM PARTLY FROM CUSTOMS AGENCIES' EFFORTS TO FIGHT ILLEGAL IMMIGRATION AND SMUGGLING CHINA MOVED TO COUNTER A STRATEGY USED BY HONG KONG WOMEN TO OBTAIN CANADIAN CITIZENSHIP FOR THEIR CHILDREN BEIJING'S CONSULATE IN VANCOUVER SAID THAT UNDER A RECENT POLICY CHANGE HONG KONG RESIDENTS WILL BE BARRED FROM DUAL CITIZENSHIP WHEN CHINA TAKES CONTROL OF THE BRITISH COLONY IN NINETEEN NINETY SEVEN NON RESIDENT BIRTHS IN THE VANCOUVER AREA TOTAL ABOUT THREE HUNDRED A YEAR OFTEN TO HONG KONG WOMEN WITH TOURIST VISAS CHILDREN BORN TO FOREIGNERS ARE ELIGIBLE FOR CANADIAN CITIZENSHIP AND AT AGE EIGHTEEN MAY SPONSOR THEIR PARENTS FOR CITIZENSHIP THIS POLICY HAS BEEN USED BY RESIDENTS OF HONG KONG AS INSURANCE AGAINST POTENTIAL REPRESSION ONCE SOVEREIGNTY REVERTS TO CHINA THE PARIS SUBURB OF ISSY LES MOULINEAUX WILL INSTALL BRAILLE TERMINALS LINKED TO EIGHT TRAFFIC LIGHTS TO HELP BLIND PEOPLE CROSS BUSY INTERSECTIONS PUSHING A BUTTON ON THE DEVICE TURNS THE TRAFFIC SIGNAL RED WHEN THE BUTTON VIBRATES INDICATING A PEDESTRIAN MAY SAFELY CROSS THE TERMINALS ALSO ALLOW THE BLIND TO READ THE NAME OF THE STREET THE DIRECTION OF TRAFFIC AND THE STREET NUMBER OF THE NEAREST BUILDING CHINA'S XINHUA NEWS AGENCY DIDN'T HINT HOW IT KNOWS BUT SAID THE NUMBER OF CARS AND VANS SMUGGLED INTO THE COUNTRY LAST YEAR JUMPED ELEVEN PERCENT TO ONE HUNDRED THOUSAND BRAZEN THIEVES HAVE BEEN SEEN DRAGGING VEHICLES ON HUGE FLOATS BEHIND SPEEDBOATS IMPORTED CARS ARE PRIZED AS STATUS SYMBOLS BY NEWLY RICH ENTREPENEURS IN THE BOOMING ECONOMY YET HIGH TARIFFS MAKE SMUGGLED CARS ATTRACTIVE EVEN AFTER CHINA ON JANUARY FIRST SHARPLY CUT TAXES ON CARS LEVIES STILL DOUBLE THE PRICE OF AN IMPORTED AUTO MOREOVER LOOPHOLES FOR AVOIDING TAXES ON LUXURY CARS WERE CLOSED AND MONETARY REFORM THAT DEVALUED THE CURRENCY MADE IMPORTS MORE EXPENSIVE PROPOSALS IN NINETEEN NINETY THREE FOR MANUFACTURING PROJECTS IN MALAYSIA SHRANK FOR THE THIRD CONSECUTIVE YEAR BOTH IN TERMS OF THE TOTAL NUMBER AND ESTIMATED VALUE THE GOVERNMENT RECEIVED EIGHT HUNDRED TWO APPLICATIONS TO SET UP MANUFACTURING OPERATIONS DOWN SIX POINT EIGHT PERCENT FROM A YEAR EARLIER AND THEIR VALUE TOTALED SIX POINT NINE FOUR BILLION DOLLARS OFF TWENTY PERCENT PROPOSED FOREIGN INVESTMENT IN MANUFACTURING SANK THIRTY EIGHT PERCENT TO TWO POINT EIGHT TWO BILLION DOLLARS ATTRIBUTED MAINLY TO STIFFER COMPETITION FOR FOREIGN CAPITAL AND TROUBLES IN MAJOR GLOBAL ECONOMIES DOMESTIC CAPITAL INVESTMENT WAS FLAT AS INDUSTRIES PURSUED FEWER AND SMALLER EXPANSIONS CHINA'S CENTRAL BANK AUTHORIZED CIRCULATION OF THE HONG KONG DOLLAR IN TWO SPECIAL ECONOMIC ZONES IN GUANGDONG PROVINCE THE PEOPLE'S BANK OF CHINA SAID THE BRITISH TERRITORY'S DOLLAR SHOULD BECOME THE MAIN CURRENCY IN SHENZHEN AND ZHUHAI BECAUSE THE ZONES IN SOUTHERN CHINA NEAR HONG KONG REQUIRE A DIFFERENT MONETARY SYSTEM THAN THAT USED IN INLAND CITIES THE HONG KONG UNIT ALREADY ISWIDELY USED BY BUSINESSES AND RESIDENTS IN THE ZONES WHICH HAVE HELPED PACE CHINA'S ECONOMIC BOOM IN RECENT YEARS U. S. COMPANIES SPELLED OUT THEIR PREFERENCES FOR ANY EUROPEAN UNION LEGISLATION TO INVOLVE WORKERS IN CORPORATE PLANNING IN A PAPER SENT TO THE COMMISSION OF THE E. U. FORMERLY THE EUROPEAN COMMUNITY AN AMERICAN CHAMBER OF COMMERCE COMMITTEE OUTLINED PRINCIPLES FOR ANY E. U. RULES REQUIRING MULTINATIONAL COMPANIES TO CONSULT WORKERS ABOUT THE EMPLOYERS' PLANS THE PANEL WHICH REPRESENTS EUROPEAN UNITS OF MAJOR U. S. COMPANIES OPPOSES E. U. LEGISLATION ON THE MATTER ARGUING THAT QUOTE VOLUNTARY AND NON REGULATED METHODS ARE THE MOST EFFECTIVE WAYS OF FOSTERING QUOTE WORKER PARTICIPATION BUT THE COMMITTEE SEEMED RESIGNED TO SOME FORM OF REGULATION EITHER THROUGH E. U. LEGISLATION OR A PAN EUROPEAN ACCORD BETWEEN EMPLOYERS AND UNIONS THE PANEL SAID ANY EUROPEAN INITIATIVE SHOULD PROVIDE A BROAD FRAMEWORK LEAVING DETAILS TO BE WORKED OUT AT THE COMPANY LEVEL TO IMPROVE THE PHILIPPINES' IMAGE AQUINO AIRPORT IS URGING ITS EMPLOYEES TO REPLACE THEIR SNEER AND ZOMBIE LOOKS WITH SMILES THE GOVERNMENT RUN MANILA AIRPORT WHICH HAS A REPUTATION FOR INEFFICIENCY AND CORRUPTION BEGAN A CAMPAIGN TO TEACH PERSONNEL PROPER ETIQUETTE TOWARD PASSENGERS A BRITISH CONSUMER GROUP DEMANDED CLEARER FOOD LABELING BY PRODUCERS AND RESTAURANTS FOLLOWING THE COUNTRY'S FIFTH KNOWN DEATH IN THE PAST YEAR FROM AN ALLERGIC REACTION TO PEANUTS MAGNETEK INCORPORATED SAID THAT IT WILL REPORT A LOSS FOR THE SECOND QUARTER ENDED DECEMBER THIRTY FIRST RESULTING FROM A RESTRUCTURING CHARGE THAT QUOTE ISN'T EXPECTED TO EXCEED SIXTY MILLION DOLLARS QUOTE AS PART OF THE RESTRUCTURING WHICH THE COMPANY ANNOUNCED ONLY IN BROAD TERMS LAST OCTOBER MAGNETEK IN LOS ANGELES YESTERDAY SAID IT HAS IDENTIFIED SIX OF ITS BUSINESS GROUPS AS CANDIDATES FOR DIVESTITURE THE OPERATIONS RANGING FROM PLANTS THAT MANUFACTURE HIGH VOLTAGE ELECTRIC COILS TO FACILITIES THAT PRODUCE POWER CONVERTERS MEDIUM POWER TRANSFORMERS AND INDUSTRIAL BRAKES ACCOUNT FOR ABOUT TWENTY NINE PERCENT OF THE COMPANY'S ANNUAL ONE POINT FIVE BILLION DOLLARS IN REVENUE THE RESTRUCTURING IS EXPECTED TO BE COMPLETED BY SEPTEMBER SOME OF THE OPERATIONS MAY BE SOLD FOR LESS THAN BOOK VALUE THE COMPANY INDICATED MEDIA GENERAL INCORPORATED RICHMOND VIRGINIA SAID IT AGREED TO SELL ITS FORTY PERCENT STAKE AND ITS SERIES A AND SERIES C. PREFERRED STOCK IN GARDEN STATE NEWSPAPERS TO AN ENTITY CONTROLLED BY RICHARD B. SCUDDER AND WILLIAM DEAN SINGLETON FOR ABOUT SIXTY TWO POINT SEVEN MILLION DOLLARS MESSRS SINGLETON AND SCUDDER EXECUTIVES AT CLOSELY HELD MEDIANEWS GROUP IN HOUSTON ALREADY CONTROL SIXTY PERCENT OF THE GARDEN STATE COMMUNITY NEWSPAPERS CHAIN THIS WEEK MEDIA GENERAL SAID GARDEN STATE NEWSPAPERS FAILED TO REDEEM THE SERIES A AND SERIES C. PREFERRED STOCK BY JANUARY FIRST AS REQUIRED UNDER THE ISSUE'S TERMS MEDIA GENERAL SAID IT WANTED TO SELL ITS GARDEN STATE NEWSPAPERS STAKE OR BUY THE REST OF THE CHAIN MEDIA GENERAL ALSO AGREED TO EXCHANGE ITS SERIES B. PREFERRED STOCK IN GARDEN STATE NEWSPAPERS FOR THE NINE PERCENT PREFERRED STOCK IN DENVER NEWSPAPERS INCORPORATED HELD BY GARDEN STATE NEWSPAPERS MEDIA GENERAL STILL WOULD HOLD A WARRANT TO BUY FORTY PERCENT OF THE COMMON EQUITY OF DENVER NEWSPAPERS WHICH OWNS THE DENVER POST FOR THE FIRST TIME IN THE MUSIC BUSINESS COMPACT DISKS OUTSOLD CASSETTES IN NINETEEN NINETY THREE ACCORDING TO YEAR END DATA RELEASED BY SOUNDSCAN INCORPORATED A POINT OF SALE INFORMATION SYSTEM OVERALL UNIT SALES OF ALBUMS AND SINGLES ON ALL FORMATS WERE UP ABOUT FOUR POINT TWO SEVEN PERCENT LAST YEAR WITH ABOUT SIX HUNDRED EIGHTY THREE MILLION UNITS SOLD IN THE U. S. COMPARED WITH SIX HUNDRED FIFTY FIVE MILLION IN NINETEEN NINETY TWO SOUNDSCAN SAID THIS INCREASE TRANSLATED TO A TEN PERCENT TO TWELVE PERCENT INCREASE IN SALES REVENUE TO THE MUSIC INDUSTRY QUOTE IT'S A HEALTHY BUSINESS CONSIDERING THE ECONOMY'S NOT SO GREAT QUOTE SAID MIKE SHALETT CHIEF OPERATING OFFICER OF SOUNDSCAN BASED IN HARTSDALE N. Y. SOUNDSCAN WHICH MONITORS STORES ACCOUNTING FOR ABOUT SEVENTY PERCENT OF U. S. SALES DOESN'T HAVE COMPLETE FIGURES ON NINETEEN NINETY ONE MUSIC DISTRIBUTORS BEGAN SHIPPING MORE C. D.S THAN CASSETTES DURING THE FOURTH QUARTER OF NINETEEN NINETY TWO BUT CONSUMERS DIDN'T RESPOND UNTIL THE NEXT YEAR OVERALL SALES OF ALBUM CASSETTES IN NINETEEN NINETY TWO WERE TWO HUNDRED NINETY NINE POINT SIX MILLION UNITS OR FIFTY FIVE PERCENT OF SALES COMPARED WITH TWO HUNDRED FORTY EIGHT POINT TWO MILLION UNITS OR FORTY FIVE PERCENT OF C. D.S IN NINETEEN NINETY THREE THREE HUNDRED FOUR POINT THREE MILLION C. D.S OR FIFTY THREE PERCENT WERE SOLD COMPARED WITH TWO HUNDRED SIXTY SEVEN POINT SEVEN MILLION CASSETTES OR FORTY SEVEN PERCENT THE SALE OF SINGLES WAS STILL STRONG WITH ONE HUNDRED TEN POINT EIGHT MILLION UNITS SOLD COMPARED WITH ONE HUNDRED SEVEN POINT THREE THE YEAR BEFORE MOST OF THESE SINGLES WERE SOLD IN CASSETTE FORM MYCOGEN CORPORATION SAID IT WOULD TAKE FOURTH QUARTER CHARGES OF THIRTY FOUR MILLION DOLLARS RELATED TO ITS ACQUISITION OF AN ADDITIONAL TWENTY NINE POINT FIVE PERCENT STAKE IN A JOINT VENTURE IT OWNS WITH LUBRIZOL CORPORATION THE ACQUISITION FOR SEVEN MILLION DOLLARS IN CASH AND TWO MILLION SHARES OF MYCOGEN STOCK INCREASES MYCOGEN'S STAKE IN THE PARTNERSHIP MYCOGEN PLANT SCIENCES TO EIGHTY PERCENT THE TWO COMPANIES AGREED IN NINETEEN NINETY TWO TO DEVELOP CROP VARIETIES GENETICALLY ENGINEERED TO BE INSECT RESISTANT AND LUBRIZOL SWAPPED A MAJORITY STAKE IN ITS AGRIGENETICS SEED UNIT FOR CASH AND STOCK VALUED AT ONE HUNDRED THIRTY FIVE MILLION DOLLARS NOW MYCOGEN BASED IN SAN DIEGO SAYS IT HAS AGREED TO PURCHASE LUBRIZOL'S REMAINING STAKE OVER TIME LUBRIZOL'S OWNERSHIP STAKE IN MYCOGEN INCREASES TO ABOUT THIRTY TWO PERCENT FROM ABOUT TWENTY FIVE PERCENT MYCOGEN SAID IT WILL REPORT AN OPERATING LOSS FOR THE QUARTER AND THAT COMBINED WITH THE ONE TIME ITEMS THE COMPANY'S NET LOSS FOR NINETEEN NINETY THREE WILL SURPASS THAT OF NINETEEN NINETY TWO WHEN A THIRTY POINT FOUR MILLION DOLLAR LOSS WAS POSTED IN NASDAQ STOCK MARKET TRADING YESTERDAY MYCOGEN SHARES FELL FIFTY CENTS TO ELEVEN DOLLARS AND FIFTY CENTS CIRCUIT CITY STORES INCORPORATED REPORTED STRONG SALES GAINS FOR THE CHRISTMAS SEASON BUT THE ELECTRONICS RETAILER'S STOCK PLUNGED TWENTY PERCENT ON THE NEWS THAT A PREVIOUSLY ANNOUNCED EXPANSION PLAN AND MORE PRICE CUTTING WOULD RESULT IN VIRTUALLY NO EARNINGS GROWTH IN FISCAL NINETEEN NINETY FIVE THE COMPANY THE NATION'S LARGEST SPECIALTY RETAILER OF BRAND NAME CONSUMER ELECTRONICS AND MAJOR APPLIANCES REPORTED THAT DECEMBER SALES AT STORES OPEN ONE YEAR OR LONGER JUMPED EIGHT PERCENT FROM THE SAME PERIOD IN NINETEEN NINETY TWO BETTER THAN THE COMPANY HAD EXPECTED TOTAL SALES INCREASED TWENTY FIVE PERCENT TO SEVEN HUNDRED THIRTEEN POINT EIGHT MILLION DOLLARS FROM DECEMBER NINETEEN NINETY TWO HOWEVER THE COMPANY'S SHARES FELL AFTER IT ANNOUNCED THAT IT DOESN'T EXPECT EARNINGS GROWTH IN FISCAL NINETEEN NINETY FIVE WHICH BEGINS MARCH FIRST ANALYSTS HAD BEEN ESTIMATING THAT EARNINGS FOR FISCAL NINETEEN NINETY FOUR ENDING FEBRUARY TWENTY EIGHTH WILL BE ABOUT ONE DOLLAR AND FORTY CENTS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CIRCUIT CITY'S STOCK FELL FOUR DOLLARS AND FIFTY CENTS TO SEVENTEEN POINT SIX TWO FIVE DOLLARS IN HEAVY TRADING DESPITE STRONG EARNINGS OF LATE CIRCUIT CITY'S SHARES HAVE FALLEN RECENTLY FROM A HIGH IN THE LAST YEAR OF ABOUT THIRTY THREE DOLLARS BECAUSE OF CONCERNS OVER GROWING COMPETITION IN ELECTRONICS RETAILING THE STOCK OF RIVAL BEST BUY COMPANY ALSO WAS BATTERED YESTERDAY TUMBLING SEVEN DOLLARS AND FIFTY CENTS OR SIXTEEN PERCENT TO CLOSE AT THIRTY NINE DOLLARS AND SEVENTY FIVE CENTS IN HEAVY BIG BOARD TRADING RICHARD L. SHARP CIRCUIT CITY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY THAT THIS YEAR HIS COMPANY PLANS A QUOTE MORE AGGRESSIVE MARKETING APPROACH QUOTE TO INCREASE ITS MARKET SHARE WHICH WILL INCLUDE LOWER PRICES ESPECIALLY IN COMPETITIVE MARKETS CIRCUIT CITY IS CURRENTLY LOCKED IN A BATTLE FOR NEW MARKETS WITH BEST BUY AND OTHER ELECTRONICS STORE CHAINS MR. SHARP SAID CIRCUIT CITY EXPECTS THAT REDUCTIONS IN GROSS PROFIT MARGINS AND INCREASED COSTS ASSOCIATED WITH THE ACCELERATION IN STORE EXPANSION PLANS WILL RESULT IN NO MATERIAL EARNINGS GROWTH IN FISCAL NINETEEN NINETY FIVE LAST MONTH CIRCUIT CITY SAID IT PLANNED TO OPEN ONE HUNDRED EIGHTY NEW SUPERSTORES IN THE NEXT THREE YEARS DELTA AIR LINES SAID IT FILED A PETITION WITH THE FEDERAL APPEALS COURT IN THE DISTRICT OF COLUMBIA CHALLENGING A DECISION BY THE DEPARTMENT OF TRANSPORTATION TO GIVE A. M. R. CORPORATION'S AMERICAN AIRLINES TWO NEW ROUTES TO LONDON THE D. O. T. MOVE LAST NOVEMBER WAS A BLOW TO DELTA AND TO SALT LAKE CITY WHERE THAT AIRLINE HAD PROPOSED ESTABLISHING ONE OF THE ROUTES AT ITS WESTERNMOST HUB INSTEAD THE D. O. T. SELECTED NASHVILLE TENNESSEE AND THE RALEIGH DURHAM AREA OF NORTH CAROLINA AMERICAN AIRLINES PLANS TO BEGIN FLYING BOTH ROUTES MAY TWENTY SIXTH LAST MONTH DELTA APPEALED THE D. O. T. DECISION BUT THE AGENCY REJECTED THAT REQUEST AS PREVIOUSLY REPORTED THE D. O. T. SAID IT CHOSE THE TWO MARKETS BECAUSE EACH SERVES MORE PEOPLE THAN SALT LAKE CITY BUT IN A STATEMENT YESTERDAY DELTA SAID THE D. O. T.'S CHOICE IGNORES THE LACK OF LONDON SERVICE IN SALT LAKE CITY UNDERFUNDING IN FEDERALLY INSURED PENSION PLANS CLIMBED NEARLY FORTY PERCENT TO AN ESTIMATED FIFTY THREE BILLION DOLLARS IN NINETEEN NINETY TWO INCREASING THE NEED FOR LEGISLATION TO FORCE A NARROWING OF THE FUNDING GAPS THE GOVERNMENT INSURER SAID PENSION BENEFIT GUARANTY CORPORATION EXECUTIVE DIRECTOR MARTIN SLATE SAID THAT WHILE THE MAJORITY OF SINGLE EMPLOYER PENSION FUNDS INSURED BY THE AGENCY ARE FUNDED FULLY THE FIGURE SENDS A QUOTE CLEAR SIGNAL THAT WE HAVE A GROWING PROBLEM QUOTE DESPITE THE P. B. G. C.'S OWN DEFICIT OF TWO POINT SEVEN BILLION DOLLARS IN NINETEEN NINETY TWO HOWEVER THE AGENCY HAS AMPLE ASSETS TO PAY BENEFITS FOR MANY YEARS TO COME HE SAID ABOUT SEVENTY TWO PERCENT OF THE UNDERFUNDING IS IN PLANS SPONSORED BY FIFTY COMPANIES AS PREVIOUSLY REPORTED ESPECIALLY IN THE STEEL AUTO TIRE AND AIRLINE INDUSTRIES LEGISLATION PROPOSED LATE LAST YEAR BY THE CLINTON ADMINISTRATION WOULD REQUIRE EMPLOYERS WITH UNDERFUNDED PLANS TO SPEED UP CONTRIBUTIONS TO THEIR PENSION FUNDS IT ALSO WOULD BOOST INSURANCE PREMIUMS FOR PLANS THAT POSE THE GREATEST RISK OF FAILURE THAT WOULD REQUIRE THE P. B. G. C. TO STEP IN AND PROVIDE LIMITED PENSION BENEFITS FOR THE COMPANY'S CURRENT AND FUTURE RETIREES ABOUT THREE FOURTHS OF THE UNDERFUNDING WHICH ROSE FROM THIRTY EIGHT BILLION DOLLARS IN NINETEEN NINETY ONE IS IN PLANS SPONSORED BY FINANCIALLY HEALTHY COMPANIES AND DOESN'T NECESSARILY PRESENT A RISK TO PLAN PARTICIPANTS OR THE P. B. G. C. THE AGENCY SAID BUT ABOUT FOURTEEN BILLION DOLLARS IN UNDERFUNDING IN THE REMAINING PLANS INVOLVES ABOUT ONE POINT TWO MILLION WORKERS AND RETIREES AT COMPANIES WITH BELOW INVESTMENT GRADE RATINGS THE P. B. G. C. SAID TODAY A MILLIONAIRE I WISH THAT I COULD THINK OF IT QUOTE MY COMPLIMENTS TO THE C. E. O. QUOTE CARNIVAL CORPORATION SAID FISCAL FOURTH QUARTER EARNINGS ROSE SIXTEEN PERCENT REFLECTING CONTINUED IMPROVEMENT IN REVENUE YIELDS NET INCOME ROSE TO FIFTY POINT ONE MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE FROM FORTY THREE POINT ONE MILLION DOLLARS OR THIRTY ONE CENTS A SHARE FOURTH QUARTER REVENUE CLIMBED FOUR POINT SEVEN PERCENT TO THREE HUNDRED TWENTY FIVE POINT SEVEN MILLION DOLLARS FROM THREE HUNDRED ELEVEN MILLION DOLLARS IN THE NINETEEN NINETY TWO FOURTH QUARTER FOR THE FISCAL YEAR ENDED NOVEMBER THIRTIETH NET INCREASED FIFTEEN PERCENT TO THREE HUNDRED EIGHTEEN POINT TWO MILLION DOLLARS OR TWO DOLLARS AND TWENTY FIVE CENTS A SHARE FROM TWO HUNDRED SEVENTY SIX POINT SIX MILLION DOLLARS OR ONE DOLLAR AND NINETY SIX CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED FIVE POINT SEVEN PERCENT TO ONE POINT FIVE SIX BILLION DOLLARS FROM ONE POINT FOUR SEVEN BILLION DOLLARS A YEAR EARLIER THE MIAMI CRUISE LINE COMPANY SAID THE FISCAL YEAR RECORD RESULTS WERE AIDED BY THE INTRODUCTION OF ADVANCE PURCHASE DISCOUNT PROGRAMS THAT ENABLED EACH LINE TO BETTER MANAGE ITS YIELDS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CARNIVAL SHARES CLOSED AT AT FORTY SIX POINT THREE SEVEN FIVE DOLLARS DOWN FIFTY CENTS NESTLE S. A. THE SWISS BASED FOOD AND BEVERAGES CONCERN SAID IT HAS TAKEN A FORTY SEVEN PERCENT STAKE IN GOPLANA POLAND'S SECOND LARGEST CHOCOLATE AND CONFECTIONERY MAKER THE TRANSACTION IS VALUED AT FORTY THREE MILLION DOLLARS NESTLE SAID UNDER THE ACQUISITION NESTLE WILL BE ALLOWED TO INCREASE ITS STAKE TO FIFTY ONE PERCENT POLISH STATE ENTITIES CURRENTLY CONTROL FORTY SEVEN PERCENT OF GOPLANA WHILE WORKERS CONTROL SIX PERCENT A NESTLE SPOKESMAN SAID GOPLANA LOCATED IN POZNAN EMPLOYS AROUND TWO THOUSAND FOUR HUNDRED PEOPLE AND HAD SALES IN NINETEEN NINETY THREE OF SIXTY FOUR MILLION DOLLARS LWT HOLDINGS P. L. C. SAID ITS MERGER TALKS WITH YORKSHIRE TYNE TEES TELEVISION HOLDINGS P. L. C. HAVE BEEN DISCONTINUED THE MERGER HAD BEEN SOUGHT BY LWT THE PARENT OF LONDON WEEKEND TELEVISION IN AN ATTEMPT TO WARD OFF A HOSTILE BID FOR LWT FROM GRANADA GROUP P. L. C. THE BREAKDOWN OF THE TALKS BETWEEN THE BRITISH BROADCASTERS ENHANCES THE CHANCE OF GRANADA SUCCEEDING IN ITS BID FOR LWT REACTING TO THE NEWS THE SHARES OF LWT ROSE TWENTY TWO PENCE THIRTY TWO POINT SEVEN THREE SIX CENTS TO CLOSE AT SIX HUNDRED FORTY EIGHT PENCE NINE POINT SIX FOUR TWO DOLLARS AFTER THE ANNOUNCEMENT SIR CHRISTOPHER BLAND CHAIRMAN OF LWT SAID IN AN INTERVIEW THAT A PROFIT FORECAST TO BE RELEASED NEXT WEEK WILL HELP LWT DEFEND ITSELF AGAINST GRANADA'S HOSTILE BID MR. BLAND SAID HE WILL USE THE FORECAST PAIRED WITH THE COMPANY'S PAST RECORD TO CONVINCE SHAREHOLDERS THAT GRANADA'S BID FOR THE COMPANY IS TOO LOW GRANADA LAUNCHED A TAKEOVER DECEMBER SIXTH WITH AN OFFER THAT VALUED LWT AT ABOUT SIX HUNDRED SIXTY MILLION POUNDS NINE HUNDRED EIGHTY TWO POINT ONE MILLION DOLLARS MR. BLAND WOULDN'T COMMENT ON WHETHER HE WOULD CONSIDER ACCEPTING A LARGER BID FROM GRANADA SAYING ONLY THAT THE CURRENT BID WAS INADEQUATE MR. BLAND HAD BEEN EAGER TO FORM AN ALLIANCE WITH YORKSHIRE T. V. AS WELL AS OTHERS AS PART OF A STRATEGY TO STRENGTHEN AND EXPAND HIS GROUP HE WAS TRYING TO CAPITALIZE ON REGULATORY RESTRICTIONS ON I. T. V. COMPANIES THAT BLOCK ONE I. T. V. FRANCHISE HOLDER FROM OWNING MORE THAN TWO OTHERS GRANADA ALREADY HAS ONE FRANCHISE IN A NEWS RELEASE LWT AND YORKSHIRE SAID THAT ALTHOUGH THEY RECOGNIZED THE COMMERCIAL ARGUMENTS FOR A CLOSER RELATIONSHIP THEY WERE UNABLE TO MEET THE INDEPENDANT TELEVISION NETWORK OR I. T. V. OWNERSHIP RULES AT THE DECEMBER OFFER GRANADA OWNED SEVENTEEN POINT FIVE ONE PERCENT OF LWT'S SHARES LAST WEEK GRANADA SAID IT ACCUMULATED AN ADDITIONAL TWO POINT THREE ONE PERCENT OF LWT SHARES AND IT EXTENDED THE OFFER UNTIL WEDNESDAY GRANADA IS A LEISURE COMPANY WITH MOTOR WAY SERVICES BOWLING CENTERS NIGHTCLUBS THEME PARKS TRAVEL SERVICES AND RENTAL BUSINESSES BUT IT IS GAINING PROMINENCE FOR ITS TELEVISION OPERATIONS WHICH INCLUDE PART OF THE U. K. INDEPENDENT TELEVISION NETWORK AND A STAKE IN BRITISH SKY BROADCASTING LABOR SECRETARY ROBERT REICH LEARNED AN IMPORTANT LESSON WHEN HE TALKS THE BOND MARKETS LISTEN IN A TELECONFERENCE BROADCAST FROM THE U. S. INFORMATION AGENCY IN WASHINGTON TO AN ECONOMIC CONFERENCE IN PARIS MR. REICH WAS ASKED ABOUT THE DECEMBER UNEMPLOYMENT FIGURES A CLOSELY WATCHED ECONOMIC INDICATOR TO BE RELEASED TODAY QUOTE I'M SURE YOU HAVE SEEN THEM CAN YOU GIVE US AN INDICATION OF WHAT THEY SHOW MR. REICH WAS ASKED HIS REPLY I CAN'T TELL YOU EXACTLY WHAT THEY WILL SHOW BUT I THINK THEY WILL SHOW EMPLOYMENT RISING IN THE AREA OF PROBABLY ANOTHER ONE HUNDRED SIXTY THOUSAND TO TWO HUNDRED THOUSAND MR. REICH'S RESPONSE INSTANTLY REPORTED BY FINANCIAL WIRE SERVICES GAVE SOME TRADERS THE IMPRESSION THAT HE HAD ACTUALLY SEEN THE EMPLOYMENT FIGURES AND WAS GIVING THE MARKETS AN UNPRECEDENTED HEADS UP THE BOND MARKET WENT INTO A TIZZY SHOOTING UP ON THE NEWS THAT JOB GROWTH IN DECEMBER WAS BELOW WHAT MARKET ANALYSTS WERE EXPECTING BOND PRICES RISE AND INTEREST RATES FALL ON BAD ECONOMIC NEWS BECAUSE THAT IS SEEN AS LESSENING THE RISK OF INFLATION TIMING MADE MATTERS WORSE MR. REICH'S STATEMENTS TOOK PLACE AT ABOUT EIGHT A. M. NEW YORK TIME AT EIGHT THIRTY THE LABOR DEPARTMENT RELEASED ITS WEEKLY REPORT ON CLAIMS FOR UNEMPLOYMENT BENEFITS WHICH SHOWED A HUGE SEVENTY THOUSAND INCREASE FOR LAST WEEK THAT BAD NEWS SENT THE MARKET SOARING EVEN MORE THE COMBINATION HELPED PUSH INTEREST RATES ON LONG TERM TREASURY SECURITIES DOWN TO SIX POINT THREE FOUR PERCENT FROM SIX POINT FOUR OH PERCENT KATHERINE ABRAHAM HEAD OF THE LABOR DEPARTMENT'S BUREAU OF LABOR STATISTICS INSISTED THAT MR. REICH WAS SIMPLY MAKING A FORECAST AND DIDN'T KNOW FOR SURE HOW MANY JOBS WERE CREATED IN THE ECONOMY DURING DECEMBER FOR SECURITY REASONS THE BUREAU SAID IT DOESN'T SHARE ITS FIGURES WITH THE LABOR SECRETARY UNTIL THE MORNING THEY ARE RELEASED MARY MEAGHER MR. REICH'S SPOKESWOMAN CALLED HIS STATEMENTS AN EDUCATED GUESS WE SUSPECT STRONGLY THAT NEXT WEEK'S DATA WILL REGISTER A SIGNIFICANT DECLINE SAID MARILYN SCHAJA DONALDSON LUFKIN AND JENRETTE CORPORATION MONEY MARKET ECONOMIST THE FOUR WEEK MOVING AVERAGE OF CLAIMS WHICH IS CONSIDERED A MORE RELIABLE MEASURE OF LABOR MARKET CONDITIONS ROSE ONLY SIX THOUSAND FIVE HUNDRED TO THREE HUNDRED TWENTY EIGHT THOUSAND FIVE HUNDRED DURING THE LATEST PERIOD THE FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS THE UNITED AUTO WORKERS UNION IS THREATENING TO STRIKE A KEY GENERAL MOTORS CORPORATION TRUCK PLANT AS SOON AS TUESDAY UNDERSCORING THE CHALLENGE G. M. PRESIDENT JOHN F. SMITH JUNIOR FACES AS HE TRIES TO KICK THE NUMBER ONE AUTO MAKER'S TURNAROUND INTO HIGHER GEAR IN AN INTERVIEW YESTERDAY MR. SMITH SAID QUOTE THERE IS SOME NOISE QUOTE AND SOME TENSION IN RELATIONS BETWEEN THE COMPANY AND THE U. A. W. BUT HE MAINTAINED THAT GENERALLY WE'RE WORKING VERY WELL TOGETHER WE NEED TO OVER TIME HOWEVER EVEN AS MR. SMITH SPOKE U. A. W. OFFICIALS ANGRY AT THE SLOW PROGRESS OF PLANT LEVEL CONTRACT TALKS WERE STARTING THE COUNTDOWN FOR A STRIKE AT G. M.'S BIG SHREVEPORT LOUISIANA ASSEMBLY PLANT THAT BUILDS CHEVROLET S. TEN AND G. M. C. SONOMA PICKUPS THE TRUCKS REDESIGNED FOR LAST FALL ARE AMONG G. M.'S LARGEST SELLING VEHICLES THE FLARE UP AT SHREVEPORT COMING JUST TWO MONTHS AFTER G. M. AND THE U. A. W. REACHED A NEW NATIONAL CONTRACT WITHOUT A STRIKE THREAT CAST A CLOUD OVER MR. SMITH'S EFFORTS TO HIGHLIGHT G. M.'S PROGRESS DURING NINETEEN NINETY THREE AND ITS IMPROVED OUTLOOK G. M. WAS IN THE BLACK OVERALL FOR NINETEEN NINETY THREE AND WILL SHOW MORE IMPROVEMENT IN NINETEEN NINETY FOUR MR. SMITH SAID DURING HIS INTERVIEW AT THE DETROIT AUTO SHOW THE G. M. PRESIDENT ALSO SAID G. M. EUROPE WAS PROFITABLE FOR NINETEEN NINETY THREE AND SOLD SOME FIFTEEN THOUSAND MORE VEHICLES THAN FORECAST IN DECEMBER HOWEVER MR. SMITH CAUTIONED THAT THE EUROPEAN MARKET OUTLOOK REMAINS WEAK THE REORGANIZATION OF G. M.'S NORTH AMERICAN OPERATIONS AND REFOCUSING OF ITS PARTS PROCUREMENT EFFORTS HAVE CUT THE COSTS OF DEVELOPING NEW PRODUCTS TWENTY PERCENT TO THIRTY PERCENT G. M.'S NORTH AMERICAN PASSENGER CAR BUSINESS IS STILL FAR FROM HEALTHY BUT G. M. CAN'T MOVE ANY FASTER TO REPLACE AGING AND UNPROFITABLE PRODUCTS BECAUSE WE HAVE AS MUCH ON OUR PLATTER AS WE CAN HANDLE FROM A HUMAN RESOURCES STANDPOINT MR. SMITH LATER TOLD THE ASSOCIATED PRESS THAT G. M. WILL HIRE AS MANY AS TWO THOUSAND NEW ENGINEERS THIS YEAR BECAUSE WE NEED THOSE RESOURCES MR. SMITH DECLINED TO FORECAST G. M.'S PROFITS FOR NINETEEN NINETY FOUR EXCEPT TO SAY THEY WOULD BE BETTER THAN IN NINETEEN NINETY THREE HE REITERATED THAT NORTH AMERICAN OPERATIONS ARE EXPECTED TO SHOW A PROFIT IN NINETEEN NINETY FOUR MR. SMITH ALSO SAID THE AVAILABILITY OF CAPITAL ISN'T ANY LONGER A CONSTRAINT IN DEVELOPING NEW PRODUCTS IN NINETEEN NINETY ONE G. M. DELAYED SEVERAL NEW PRODUCT PROGRAMS FOR LACK OF CASH CASH FLOW HAS BEEN VERY FAVORABLE EXCELLENT MR. SMITH SAID THAT REFLECTS REDUCED LOSSES LOWER CAPITAL SPENDING AND IMPROVED TURNOVER OF INVENTORIES MR. SMITH WAS SWEPT IN AS G. M.'S CHIEF EXECUTIVE OFFICER IN NOVEMBER NINETEEN NINETY TWO IN A COUP BY G. M.'S INDEPENDENT DIRECTORS AT A TIME WHEN G. M. WAS HEMORRHAGING ONE BILLION DOLLARS IN CASH EVERY QUARTER HIS FIRST MANDATE WAS TO STOP THE BLEEDING BY CUTTING COSTS WHILE MR. SMITH IS CAREFUL NOT TO MAKE BOLD CLAIMS FOR A TURNAROUND IT'S CLEAR G. M. IS WELL OFF THE CRITICAL LIST HOWEVER MR. SMITH IS QUICK TO SAY THAT G. M. HAS A LONG WAY TO GO TO REGAIN ITS FORMER PROFITABILITY AND FINANCIAL STRENGTH THE COMPANY MUST BOLSTER ITS BALANCE SHEET WITH BILLIONS IN NEW CASH TO PREPARE FOR THE NEXT AUTO INDUSTRY DOWNTURN MR. SMITH SAID TO DO THAT HE SAID QUOTE WE MUST GET LEAN QUOTE AND DRASTICALLY IMPROVE PRODUCTIVITY GETTING LEAN OFTEN TRANSLATES INTO FEWER U. A. W. JOBS U. A. W. LEADERS HAD PRAISED MR. SMITH'S EFFORTS TO IMPROVE LABOR MANAGEMENT RELATIONS AND MR. SMITH AND HIS AIDES JUSTIFIED ACCEPTING A COSTLY NEW CONTRACT LAST NOVEMBER BY ARGUING THAT PRESERVING A GOOD RELATIONSHIP WITH THE U. A. W. WAS WORTH THE SACRIFICE OF AN UNFAVORABLE LABOR DEAL MR. SMITH'S EFFORT TO MAKE THE BEST OF THE NEW AGREEMENT BY ACCELERATING PRODUCTIVITY IMPROVEMENTS AT G. M. PLANTS HAS BEGUN TO PROVOKE A UNION BACKLASH IN DECEMBER THE U. A. W.'S TOP BARGAINER AT G. M. STEPHEN P. YOKICH UNLEASHED A TIRADE AT MR. SMITH DURING THE SIGNING CEREMONY FOR THE NATIONAL CONTRACT COMPLAINING THAT G. M. BARGAINERS WERE PUTTING UNDUE PRESSURE ON LOCAL UNIONS TO MAKE CONCESSIONS AND AGREE TO BIG WORK FORCE CUTS RAISING PRODUCTIVITY IS SOMETHING EVERYBODY CAN AGREE ON IN THE ABSTRACT SAID HARLEY SHAIKEN A PROFESSOR AT UNIVERSITY OF CALIFORNIA AT BERKELEY BUT IT GETS MUCH MORE DIFFICULT WHEN YOU GET DOWN TO SPECIFICS SHREVEPORT UNION OFFICIALS SAY ONE OF THEIR COMPLAINTS IS THAT G. M. IS TRYING TO RUN THE PLANT WITH TOO FEW WORKERS ESSENTIALLY PUSHING FOR IMPROVED PRODUCTIVITY SHREVEPORT CURRENTLY HAS ABOUT TWO THOUSAND THREE HUNDRED HOURLY EMPLOYEES ON TWO SHIFTS SHREVEPORT IS ONE OF FORTY EIGHT U. A. W. REPRESENTED G. M. PLANTS THAT HAVEN'T CONCLUDED A LOCAL AGREEMENT G. M. HAS ONE HUNDRED TWELVE U. A. W. REPRESENTED FACTORIES WE ARE HOPEFUL WE CAN GET THIS RESOLVED A G. M. SPOKESWOMAN SAID ADDING THAT TALKS ARE CONTINUING THE SHREVEPORT FACTORY LIKELY WON'T BE THE LAST G. M. OPERATION TO BRIDLE AT MR. SMITH'S PROGRAM OF DOING MORE WITH LESS BUT MR. SMITH SAID HE'S DETERMINED THAT G. M. MUST DO THAT TO RE ESTABLISH ITSELF AS A STRONG PROFITABLE COMPANY ANOTHER ASPECT OF MR. SMITH'S STRATEGY IS TO USE JOINT VENTURES TO EXPAND G. M.'S BUSINESS WITH LESS CAPITAL INVESTMENT YESTERDAY FOR EXAMPLE G. M.'S PARTS MAKING UNIT SAID IT IS SETTING UP JOINT VENTURES WITH CHINA TO SELL ENGINE MANAGEMENT SYSTEMS THERE AND A SEPARATE VENTURE WITH ALLIEDSIGNAL INCORPORATED TO PURSUE DEVELOPMENT AND PRODUCTION OF ADVANCED MATERIALS FOR USE IN CATALYTIC CONVERTERS WHICH SCRUB POLLUTANTS OUT OF ENGINE EXHAUST IN A SEPARATE INITIATIVE MR. SMITH SAID G. M. EXECUTIVES ARE WORKING ON A NEW MORE RIGOROUS METHOD FOR MEASURING THE PERFORMANCE OF EACH OPERATING UNIT MANAGERS WILL BE EXPECTED TO PRODUCE PROFITS EQUIVALENT TO TWELVE POINT FIVE PERCENT OR MORE OF THE VALUE OF ASSETS INVESTED IN THEIR OPERATIONS AT G. M.'S SATURN SUBSIDIARY THAT TRANSLATES TO A PROFIT OF ABOUT THREE HUNDRED MILLION DOLLARS A YEAR ON ROUGHLY TWO POINT FIVE BILLION DOLLARS IN ASSETS G. M. WON'T DISCLOSE THE ASSET BASE IT WILL USE IN MEASURING OVERALL OPERATIONS THE RETURN ON NET ASSETS MEASUREMENT IS USED BY SEVERAL OTHER COMPANIES MR. SMITH SAID G. M. MANAGERS SAY THE MEASUREMENT PUSHES THEM TO SPEND LESS ON NEW EQUIPMENT AND BUILDINGS BECAUSE THE LARGER THE BASE OF ASSETS THE MORE PROFIT REQUIRED TO HIT THE RETURN TARGET THIS COMPANY FOR TOO LONG WAS AN OPERATING INCOME DRIVEN COMPANY HEIDI KUNZ THE NEW YORK BASED TREASURER OF G. M. SAID IN A SEPARATE INTERVIEW RECENTLY MS. KUNZ'S OFFICE HAS LED THE STUDY OF HOW G. M. IS TO MEASURE SUCCESS QUOTE THE COMPANY HAS BEEN VERY PROFITABLE IN THE PAST IN DOLLARS BUT NOT IN RELATION TO ASSETS OR SALES THE PROFITS WERE SO LARGE IT WAS INEBRIATING SHE SAID MR. SMITH WON'T REVEAL WHAT KIND OF PROFIT G. M. WOULD EARN IF IT HIT HIS TARGET FOR RETURN ON NET ASSETS BUT MR. SMITH ALSO HAS SAID THAT G. M. EVENTUALLY SHOULD SHOW FIVE CENTS OF PROFIT FOR EVERY DOLLAR OF SALES ON G. M.'S ONE HUNDRED THIRTY TWO BILLION DOLLARS OF NINETEEN NINETY TWO REVENUE THAT PROFIT MARGIN WOULD HAVE YIELDED A RECORD SIX POINT SIX BILLION DOLLARS IN NET INCOME GERRITY OIL AND GAS CORPORATION DENVER SAID IT'S TERMINATING THE SEARCH FOR POTENTIAL BUYERS OF THE COMPANY THAT WAS STARTED LAST OCTOBER IN A PREPARED STATEMENT THE COMPANY SAID QUOTE AFTER INVESTIGATING THE POSSIBILITY OF SELLING THE COMPANY OVER THE PAST THREE MONTHS THE BOARD OF DIRECTORS HAS DETERMINED BASED ON INTERNAL VALUATIONS AND ON THE ADVICE OF SENIOR MANAGEMENT THE INDICATIONS OF INTEREST WHICH HAVE BEEN RECEIVED AND CURRENT INDUSTRY FACTORS THAT GREATER SHAREHOLDER VALUE IS LIKELY TO BE ACHIEVED BY CONTINUING AS AN INDEPENDENT COMPANY RATHER THAN BY SELLING OR MERGING THE COMPANY IN TODAY'S CIRCUMSTANCES QUOTE IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GERRITY CLOSED AT TWELVE DOLLARS DOWN TWELVE POINT FIVE CENTS FOR THE NINE MONTHS ENDED SEPTEMBER THIRTIETH THE COMPANY HAD NET INCOME OF NINE POINT EIGHT MILLION DOLLARS OR FIFTY EIGHT CENTS A SHARE ON REVENUE OF FIFTY POINT ONE MILLION DOLLARS WAHLCO ENVIRONMENTAL SYSTEMS INCORPORATED ANNOUNCED SEVERAL RESTRUCTURING MOVES IT SAID WOULD RESULT IN A FOURTH QUARTER CHARGE OF ABOUT TEN MILLION DOLLARS OR THIRTY SEVEN CENTS TO FORTY TWO CENTS A SHARE THE CHARGE ACCOUNTS FOR COSTS ASSOCIATED WITH THE PHASING DOWN IN NINETEEN NINETY FOUR OF THE COMPANY'S WAHLCO POWER PRODUCTS UNIT IN FAIRMONT WEST VIRGINIA AND WAHLCO ENGINEERED PRODUCTS CANADA UNIT IN MONTREAL MANUFACTURING EARMARKED FOR CANADA WILL BE TAKEN OVER BY THE COMPANY'S LEWISTON MAINE FACILITY THE MOVES WILL CUT A TOTAL OF ABOUT ONE HUNDRED FIVE JOBS OR ABOUT THIRTEEN PERCENT OF THE COMPANY'S WORK FORCE IN THE NINETEEN NINETY TWO FOURTH QUARTER THE SANTA ANA CALIFORNIA COMPANY WHICH PROVIDES AIRPOLLUTION CONTROL SYSTEMS FOR UTILITIES POSTED A NET LOSS OF FOUR POINT EIGHT MILLION DOLLARS OR TWENTY SEVEN CENTS A SHARE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY WAHLCO SHARES ROSE TWENTY FIVE CENTS OR FIVE POINT SIX PERCENT TO FOUR DOLLARS AND SEVENTY FIVE CENTS LLOYD'S OF LONDON AMENDED ITS OFFER TO SETTLE CLAIMS FROM HARD HIT INVESTORS CORRECTING A CALCULATION ERROR THE INSURANCE MARKET ALSO EXTENDED ITS DEADLINE FOR ACCEPTANCE OF THE NINE HUNDRED MILLION POUND ONE POINT THREE FOUR BILLION DOLLARS SETTLEMENT BY TWO WEEKS TO FEBRUARY FOURTEENTH LLOYD'S SAID NEARLY HALF OF THE TWENTY ONE THOUSAND NAMES AS LLOYD'S INVESTORS ARE CALLED WILL RECEIVE LESS THAN THEIR ORIGINAL OFFER SOME TWELVE THOUSAND NAMES WILL RECEIVE AN INCREASED OFFER LLOYD'S SAID THE CHANGES INVOLVE TWENTY BILLION POUNDS BUT THE TOTAL AMOUNT OF THE OFFER REMAINS UNCHANGED QUOTE THERE IS NO QUESTION OF INCREASING THE OFFER AND IF THE OFFER FAILS WE SHALL CONTINUE TO HELP THE NAMES IN SETTLING THEIR LOSSES BUT IT WILL NOT BE IN THE FORM OF ANOTHER OFFER QUOTE LLOYD'S CHAIRMAN DAVID ROWLAND SAID MANY NAMES ARE FACING BANKRUPTCY AS A RESULT OF INSURANCE LOSSES IN THE LATE NINETEEN EIGHTIES AND EARLY NINETEEN NINETIES GROUPED INTO SYNDICATES THAT UNDERWRITE INSURANCE POLICIES THE NAMES RISKED UNLIMITED PERSONAL FINANCIAL LIABILITY IN EXCHANGE FOR THE CHANCE TO SHARE PROFITS MANY BLAME MISMANAGEMENT AND LACK OF REGULATION WITHIN THE INSURANCE MARKET FOR THE LOSSES MEMBERS OF LLOYD'S WHO ACCEPT THE SETTLEMENT OFFER WILL GIVE UP THE RIGHT TO BRING LEGAL ACTION AGAINST LLOYD'S FOR DAMAGES ZALE CORPORATION SAID ITS SALES AT STORES OPEN MORE THAN A YEAR ROSE SIX POINT NINE PERCENT IN DECEMBER FROM A YEAR EARLIER THE JEWELRY RETAILER WHICH DIDN'T PROVIDE FIGURES ON ITS TOTAL SALES DURING THE MONTH SAID THE INCREASE IN SAME STORE SALES WOULD BE OFFSET BY CONTINUING PRESSURE ON THE COMPANY'S PROFIT MARGINS GOLD FUTURES PRICES SETTLED LOWER AFTER A DAY OF TURBULENT TRADING SPAWNED BY CONCERNS ABOUT THE PROSPECTS OF SELLING BY MIDDLE EASTERN INVESTOR SYNDICATES AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN TWO DOLLARS TO THREE HUNDRED NINETY DOLLARS AND TEN CENTS AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT ROSE FIVE POINT TWO CENTS TO FIVE POINT ONE THREE SEVEN DOLLARS AN OUNCE MUCH OF THE STRENGTH IN A PRECIOUS METALS PRICE RALLY OVER THE PAST TWO MONTHS HAS FLOWED FROM THE MIDDLE EAST WHERE INVESTOR SYNDICATES HAVE BEEN BUYING LARGE QUANTITIES OF SILVER BULLION THESE SYNDICATES ANALYSTS SAY HAVE BEEN HOARDING THE SILVER AS A HEDGE AGAINST POSSIBLE DEVALUATION OF THEIR CURRENCY THE RIYAL YET RECENT AUSTERITY MEASURES TAKEN BY SAUDI ARABIA APPEAR TO HAVE EASED THE PROSPECT OF DEVALUATION OF THE CURRENCY SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH AS A RESULT THERE HAS BEEN SOME LIQUIDATION OF SILVER BY THE MIDDLE EASTERN SYNDICATES QUOTE SILVER HAS BEEN THE LEADER QUOTE MR. O'NEILL SAID MOST OF THE STRENGTH AND WEAKNESS THAT HAS DEVELOPED IN THE PRECIOUS METALS MARKET RECENTLY HAS FOLLOWED SILVER SELLING BY THE MIDDLE EASTERN SYNDICATES AND OTHERS PUSHED FUTURES PRICES DOWN SHARPLY AT THE COMEX EARLY YESTERDAY AS PRICES MOVED LOWER PREARRANGED ORDERS TO SELL FUTURES CONTRACTS WERE ACTIVATED ACCELERATING THE PACE OF THE DECLINE BUT BY THE END OF THE TRADING SESSION PRICES RALLIED BACK AS BUYERS RETURNED TO THE MARKET GOLD TRADED ALL THE WAY DOWN TO THREE HUNDRED EIGHTY FIVE DOLLARS IN THE FEBRUARY CONTRACT BUT IT REBOUNDED NICELY FROM THAT LEVEL SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING AT SWISS BANK CORPORATION I THINK THIS IS HEALTHY FOR THE MARKET THE PRICE OF GOLD HAS BEEN BUILDING MORE OR LESS STEADILY SINCE EARLY LAST YEAR IT ROSE AS HIGH AS FOUR HUNDRED FOURTEEN DOLLARS AN OUNCE LAST SUMMER BEFORE FALLING AGAIN TO THE MID THREE HUNDRED DOLLAR RANGE A SPATE OF POSITIVE GOVERNMENT ECONOMIC DATA HAS RECENTLY BROUGHT THE PRICE BACK FOR A SECOND TRY AT FOUR HUNDRED DOLLAR AN OUNCE MOST ANALYSTS THINK GOLD WILL TOP THE FOUR HUNDRED DOLLAR AN OUNCE LEVEL WITHIN THE NEXT FEW WEEKS AS THE U. S. ECONOMY CONTINUES TO STRENGTHEN ENERGY CRUDE OIL FUTURES PRICES FINISHED SLIGHTLY HIGHER AFTER TRADING IN A WIDE RANGE DESCRIBED BY TRADERS AS A REAL ROLLER COASTER RIDE SOME MARKET PARTICIPANTS HAVE BEGUN TO QUESTION WHETHER THE MARKET BEARISH FOR WEEKS MAY BE POISED FOR A TURNAROUND DATA ON INVENTORY LEVELS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AND THE ENERGY DEPARTMENT DURING THE MIDDLE OF THE WEEK PROVIDED SUPPORT FOR THE PRICE RISE THEIR NUMBERS SHOWED CRUDE STOCKS DROPPED BY SIX POINT THREE MILLION TO SIX POINT SIX MILLION BARRELS LAST WEEK IN REACTION TO A SUDDEN UNEXPECTED JUMP IN REFINERY OPERATIONS ANALYSTS AND TRADERS SAID THEY WERE MOST SURPRISED BY THE FACT THAT DATA SHOWED REFINERY OPERATIONS INCREASED TO AS MUCH AS NINETY THREE POINT FIVE PERCENT OF CAPACITY A GAIN OF TWO POINT SEVEN PERCENT ON THE WEEK ANALYSTS HAD EXPECTED REFINERY OPERATIONS TO DECLINE SOME TRADERS SAID THEY BELIEVE THE JUMP IN REFINERY UTILIZATION COULD REPRESENT A LAST MINUTE EFFORT TO BUILD PRODUCT INVENTORIES BEFORE REFINERIES ARE SHUT DOWN FOR SCHEDULED MAINTENANCE BRITISH PETROLEUM COMPANY'S HUGE LOUISIANA REFINERY IS SCHEDULED FOR A FORTY TWO DAY SHUTDOWN BEGINNING FEBRUARY SEVENTEENTH AND PHILLIPS PETROLEUM COMPANY PLANS A TWENTY TWO DAY CLOSURE AT ITS PLANT IN BORGER TEXAS GRAINS PRICES OF CORN FUTURES CONTRACTS ROSE AMID SPECULATION THAT THE AGRICULTURE DEPARTMENT ON WEDNESDAY WILL REVISE ITS TWO MONTH OLD HARVEST ESTIMATE TO REFLECT MORE DAMAGE FROM EXCESSIVE RAIN AND FLOODING TRADERS EXPECT THE GOVERNMENT TO PUT THE SIZE OF THE RECENTLY HARVESTED CROP BETWEEN SIX POINT THREE BILLION BUSHELS AND SIX POINT FIVE BILLION BUSHELS THE AGRICULTURE DEPARTMENT IN NOVEMBER ESTIMATED THAT THE U. S. CORN HARVEST DECLINED THIRTY ONE PERCENT TO SIX POINT FIVE BILLION BUSHELS FROM THE NINETEEN NINETY TWO CROP U. S. CORN PRICES HAVE SOARED SINCE THE POOR FALL HARVEST AND PRICES WOULD CLIMB EVEN HIGHER THIS WINTER IF THE GOVERNMENT'S FINAL HARVEST ESTIMATE IS REVISED LOWER CORN STOCKPILES THIS YEAR ARE ALREADY EXPECTED TO BE THE TIGHTEST SINCE THE MID NINETEEN SEVENTIES MUCH OF THE CORN CROP IS USED TO FEED LIVESTOCK AND TO MAKE FRUCTOSE SWEETENER AND ETHANOL FUEL AMONG OTHER THINGS REVISING THE CORN HARVEST COULD SIGNAL THAT THE U. S. WILL HAVE PROBLEMS SUPPLYING FOREIGN CUSTOMERS IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY ROSE THREE CENTS A BUSHEL TO SETTLE AT THREE POINT OH EIGHT FIVE OH DOLLARS A BUSHEL WHEAT PRICES ROSE AMID FORECASTS THAT COLD TEMPERATURES ACROSS THE SOUTHERN PLAINS OVER THE WEEKEND MIGHT DAMAGE THE DORMANT WHEAT CROP THERE AZTEC ENERGY CORPORATION SAID IT EXPECTS TO REPORT A NET LOSS OF MORE THAN ONE POINT TWO MILLION DOLLARS FOR THE FISCAL YEAR ENDED SEPTEMBER THIRTIETH THE DALLAS COMPANY ALSO SAID IT EXPECTS TO RESTATE EARNINGS FOR THE FIRST NINE MONTHS OF FISCAL NINETEEN NINETY THREE WHICH HAD BEEN REPORTED AS PROFITABLE AS A LOSS FOR THE FIRST NINE MONTHS AZTEC HAD REPORTED NET INCOME OF ONE HUNDRED FIFTY TWO THOUSAND SIX HUNDRED THIRTY SEVEN DOLLARS OR FOUR CENTS A SHARE ON REVENUE OF SIX HUNDRED NINETY FIVE THOUSAND SEVEN HUNDRED NINETEEN DOLLARS FOR FISCAL NINETEEN NINETY TWO AZTEC HAD A NET LOSS OF FORTY SEVEN THOUSAND DOLLARS OR SEVEN CENTS A SHARE ON REVENUE OF ONE HUNDRED FIVE THOUSAND DOLLARS THE TOTAL SHARES OUTSTANDING ROSE TO FOUR POINT THREE MILLION CURRENTLY FROM ONE POINT FIVE MILLION IN SEPTEMBER NINETEEN NINETY TWO THE OIL AND NATURAL GAS COMPANY BLAMED ITS EXPECTED LOSS FOR THE YEAR ON OPERATING COSTS DELAYS IN GAS PRODUCTION AND RECLASSIFYING CERTAIN ITEMS ON ITS BALANCE SHEET AND INCOME STATEMENT AZTEC WHOSE OVER THE COUNTER TRADING WAS HALTED TEMPORARILY YESTERDAY CLOSED AT ONE POINT EIGHT FOUR THREE SEVEN FIVE DOLLARS DOWN FIFTY NINE POINT THREE SEVEN FIVE CENTS OR TWENTY FOUR PERCENT THE CLINTON ADMINISTRATION SAID IT PLANS TO SLASH CHINA'S TEXTILE AND APPAREL QUOTAS TWENTY FIVE PERCENT TO THIRTY FIVE PERCENT IN A MOVE CERTAIN TO PUT FURTHER STRAIN ON THE U. S. RELATIONSHIP WITH CHINA U. S. TRADE REPRESENTATIVE MICKEY KANTOR SAID WASHINGTON TOOK ACTION BECAUSE HE CLAIMED CHINESE COMPANIES SHIP GOODS THROUGH OTHER COUNTRIES TO AVOID U. S. QUOTA LIMITS FOR GOODS MADE IN CHINA HE SAID THE CHINESE GOVERNMENT QUOTE IS INVOLVED TO SOME DEGREE QUOTE IN THE ILLEGAL SHIPMENTS BECAUSE MANY OF THOSE COMPANIES ARE GOVERNMENT RUN YESTERDAY'S ACTION WAS EXPECTED TALKS OVER CREATING A NEW QUOTA SYSTEM FELL APART LAST MONTH AND U. S. OFFICIALS SAID CHINA DIDN'T RESPOND TO AN INVITATION TO MEET AGAIN OVER THE DISPUTE THE REDUCED QUOTAS TAKE EFFECT JANUARY SEVENTEENTH RETROACTIVE TO THE BEGINNING OF THE MONTH MR. KANTOR SAID THE U. S. CUSTOMS SERVICE CLAIMS AN ESTIMATED TWO BILLION DOLLARS IN CHINESE TEXTILES ARE SHIPPED ILLEGALLY THROUGH OTHER COUNTRIES EACH YEAR LEGAL IMPORTS OF CHINESE TEXTILES AND APPAREL TOTALED ABOUT FOUR POINT FIVE BILLION DOLLARS IN NINETEEN NINETY TWO MR. KANTOR ESTIMATED THE CUTS WOULD COST CHINA BETWEEN ONE POINT ONE BILLION DOLLARS AND ONE POINT TWO BILLION DOLLARS IN EXPORT RECEIPTS ANNUALLY U. S. OFFICIALS SAID THE THIRTY FIVE PERCENT CUT WOULD APPLY TO EIGHT CATEGORIES OF TEXTILES AND APPAREL IDENTIFIED BY THE CUSTOMS SERVICE AS ITEMS WHERE ALLEGED SHIPMENT VIOLATIONS ARE MOST PREVALENT BY CHINA THE TWENTY FIVE PERCENT REDUCTION IS EXPECTED TO APPLY TO THE OTHER CATEGORIES OF CHINESE GOODS CLINTON DEFENDERS COME OUT SWINGING ON WHITEWATER ADVISER BEGALA FINALLY OFFERS AN EXPLANATION WHY THE CLINTONS NEVER CLAIMED THEIR REAL ESTATE LOSSES ON THEIR TAX RETURNS HE SAYS THEY COULD ONLY HAVE DONE SO WHEN THEY LIQUIDATED THEIR INVESTMENT IN NINETEEN NINETY TWO THEY COULD HAVE SAVED TWO HUNDRED EIGHTY DOLLARS IF THEY CLAIMED THE LOSSES AGAINST A ONE THOUSAND DOLLAR CAPITAL GAIN THEY REPORTED HE SAYS QUOTE BUT IT WASN'T WORTH IT BECAUSE OF THE HASSLE FACTOR QUOTE WE WANT TO FIGHT BACK HE SAYS OF THE CHARGES AGAINST THE FIRST COUPLE WE ARE TIRED OF PEOPLE USING BILL AND HILLARY CLINTON AS PUNCHING BAGS CLINTON AIDES SOUGHT UNSUCCESSFULLY TO PLACE A DEFENDER ON C. B. S.'S MORNING NEWS SHOW YESTERDAY TO CONFRONT SENATE G. O. P. LEADER DOLE GORE IS ITCHING TO BE ASKED ABOUT WHITEWATER SO HE CAN UNLEASH AN ATTACK ON THE CLINTONS' TORMENTORS THE FED WILL WAIT BEFORE RAISING INTEREST RATES UNLESS INFLATION HEATS UP DESPITE WALL STREET SPECULATION TO THE CONTRARY OFFICIALS APPEAR TO HAVE VOTED TO LEAN TOWARD NEITHER HIGHER NOR LOWER RATES AT THEIR CLOSED DOOR DECEMBER MEETING SOME REGIONAL FED PRESIDENTS ARE RELUCTANT TO GIVE GREENSPAN THE LEEWAY TO MOVE RATES BECAUSE THEY WANT THE PIVOTAL CALL TO BE MADE AT A FORMAL POLICY COMMITTEE MEETING OTHERS UNSURE HOW STRONG THE FIRST QUARTER WILL BE WANT TO AVOID LAST YEAR'S FLIP FLOP WHEN THE FED LEANED TOWARD HIGHER RATES IN MAY AND REVERSED ITSELF IN AUGUST STILL THE FED PROBABLY WILL PUSH UP RATES BEFORE MIDYEAR THE NEW WHITE HOUSE ECONOMIC FORECAST ANTICIPATES AN INCREASE OF ABOUT A HALF PERCENTAGE POINT THIS YEAR INMAN'S INTERESTS MAY RANGE WELL BEYOND TRADITIONAL PENTAGON CONCERNS THE DEFENSE CHIEF DESIGNATE IS LIKELY TO WEIGH IN ON TRADE MATTERS THOUGH A FREE TRADER HE BELIEVES THE GOVERNMENT SHOULD HELP INDUSTRY COMPETE VIGOROUSLY WITH FOREIGN FIRMS HE ALSO FAVORS LOOSENING ANTITRUST REGULATIONS PENTAGON OFFICIALS HAVE BEEN TANGLING OVER THE ISSUE WITH JUSTICE BUT ASPIN NEVER SPOKE OUT ON THEIR BEHALF INMAN IS LIKELY TO ARGUE FOR RELATIVELY ROBUST DEFENSE BUDGETS BUT ALSO FOR SKEWING SPENDING AWAY FROM BIG TICKET WEAPONS PROCUREMENT AND TOWARD RESEARCH AND DEVELOPMENT TO MAINTAIN THE U. S. TECHNOLOGICAL EDGE TO FIND R. AND D. FUNDS HE ALMOST CERTAINLY WILL ORDER MORE PERSONNEL CUTS WHICH COULD BRING HIM INTO CONFLICT WITH THE SERVICES ESPECIALLY THE ARMY HOUSE INTELLIGENCE CHAIRMAN GLICKMAN SAYS INMAN AN INTELLIGENCE SPECIALIST COULD CHALLENGE THE AUTHORITY A LITTLE BIT OF C. I. A. CHIEF WOOLSEY ALARMED BY THE PUBLIC SQUABBLE BETWEEN THE TREASURY AND FED OVER BANK REGULATORY CONSOLIDATION WHITE HOUSE ECONOMIC AIDES TRY TO BROKER A COMPROMISE SOME ADMINISTRATION AND FED OFFICIALS ASK PRIVATELY WHY GREENSPAN DIDN'T PERSONALLY ALERT THE WHITE HOUSE TO HIS CONCERNS WHEN EARLIER TALKS WITH TREASURY BROKE DOWN WILLIAM KRISTOL THE G. O. P. STRATEGIST WHO SHOOK UP REPUBLICANS' HEALTH REFORM THINKING LAST MONTH BY ARGUING THERE IS NO HEALTH CARE CRISIS READIES A FOLLOW UP STRATEGY HE ARGUES THAT RATHER THAN PUSH BIG PLANS TO COUNTER CLINTON'S THE G. O. P. SHOULD PRODUCE A LIMITED SET OF INSURANCE AND MALPRACTICE REFORMS AND TAX INCENTIVES GEORGIA SENATOR COVERDELL SEEMS ATTRACTED TO THE APPROACH KRISTOL HOPES ABOVE ALL TO CONVERT GINGRICH AND DOLE GLASNOST THE C. I. A. ISSUES ITS FIRST NEWSLETTER TO JOURNALISTS SCHOLARS AND PUBLIC INTEREST GROUPS SENT IN AN ENVELOPE BEARING A HOLOGRAM OF A SPY SATELLITE INSTEAD OF A STAMP THE NEWSLETTER PROMISES THAT THE AGENCY WILL RELEASE LARGE QUANTITIES OF ITS SECRET COLD WAR FILES LATER THIS YEAR SOME DEALING WITH THE NINETEEN SIXTY ONE BAY OF PIGS INVASION CLINTON'S EMERGING PLAN TO OVERHAUL THE SUPERFUND TOXIC CLEANUP PROGRAM MAY PROVE AN EASIER SELL TO REPUBLICANS THAN TO MEMBERS OF HIS OWN PARTY KEY LEGISLATIVE DEMOCRATS WHO HAVE BEEN BRIEFED ON THE PLAN ARE WARY THEY PREFER A GREENER PROPOSAL PUT FORWARD BY A PANEL OF ENVIRONMENTALISTS AND INDUSTRY REPRESENTATIVES JUSTICES RETURN TO FACE CASES ON THE ENVIRONMENT CRIME AND MILITARY BASES THE HIGH COURT RECONVENES MONDAY AMID GROWING BLACKMUN RETIREMENT RUMORS THE JUSTICES WILL USE THE FIGHT OVER THE PROPOSED CLOSING OF THE HUGE PHILADELPHIA NAVY YARD TO DECIDE WHETHER POLITICIANS MAY ASK THE JUDICIARY TO SECOND GUESS THE DECISIONS OF THE BASE CLOSING COMMISSION CREATED BY CONGRESS BIG MONEY RIDES ON A CASE FROM CHICAGO INVOLVING WHETHER ASH LEFT AFTER INCINERATION OF CITY TRASH MUST BE TREATED AS HAZARDOUS WASTE IF SO INCINERATORS IN MANY CITIES COULD FAIL PROMPTING DEFAULT ON BILLIONS OF DOLLARS IN MUNICIPAL BONDS THE COURT ALSO WILL CONSIDER WHETHER STATE TAXATION OF ILLEGAL NARCOTICS POSSESSED BY A DEFENDANT SHOULD BE BARRED UNDER THE DOUBLE JEOPARDY CLAUSE MINOR MEMOS CLINTON MOMENTARILY NONPLUSED WHEN A SUPPORTER ASKS HIM AT A WHITE HOUSE RECEPTION WHETHER HE FAVORS ARKANSAS OR GEORGETOWN IN COLLEGE BASKETBALL FINALLY RESPONDS QUOTE ARKANSAS BUT DON'T TELL JOHN THOMPSON QUOTE E. P. A. ADMINISTRATOR CAROL BROWNER TAKES FEARSOME CAPITOL HILL BARON JOHN DINGELL TO THE MOVIES TO SEE GRUMPY OLD MEN. CLINTON'S BUDGET OFFICE DECIDES TO ISSUE THE BUDGET IN FOUR SEPARATE VOLUMES AS WAS DONE IN THE PRE RICHARD DARMAN ERA GONE IS THE SINGLE VOLUME THE SIZE OF THE MANHATTAN PHONE BOOK SHARES OF S. AND K. FAMOUS BRANDS INCORPORATED TUMBLED MORE THAN THIRTEEN PERCENT AFTER THE COMPANY ACKNOWLEDGED THAT ITS SALES LEVELS FOR THE FOURTH QUARTER WON'T MEET ANALYSTS' EXPECTATIONS THE RICHMOND VIRGINIA MENSWEAR RETAILER SAID IT EXPECTS FOURTH QUARTER GROSS SALES TO BE BETWEEN THIRTY THREE MILLION DOLLARS AND THIRTY FIVE MILLION DOLLARS ABOUT AN EIGHT PERCENT TO FIFTEEN PERCENT GAIN OVER THE YEAR AGO PERIOD ANALYSTS HAD ESTIMATED FOURTH QUARTER SALES WOULD BE ABOUT THIRTY NINE MILLION DOLLARS S. AND K. SAID IT BELIEVES LOWER THAN EXPECTED SALES STEMMED FROM SOFT DEMAND FOR MEN'S APPAREL IN SOME LOCATIONS DURING THE HOLIDAY SEASON S. AND K. HAS ONE HUNDRED FIFTY FOUR STORES IN TWENTY SIX STATES IN NASDAQ MARKET TRADING S. AND K. SHARES FELL TWO DOLLARS AND FIFTY CENTS TO SIXTEEN DOLLARS IN HEAVY TRADING AMERICAN TELEPHONE AND TELEGRAPH COMPANY LAUNCHED A BROADSIDE AGAINST THE CABLE TELEVISION INDUSTRY WARNING THAT CABLE PURVEYORS COULD ACT AS QUOTE GATEKEEPERS QUOTE RESTRICTING WHAT GOES INTO HOMES OVER THE EMERGING INFORMATION HIGHWAY IN HIS KEYNOTE ADDRESS TO THE CONSUMER ELECTRONICS SHOW HERE YESTERDAY ROBERT KAVNER A. T. AND T. EXECUTIVE VICE PRESIDENT AND CHIEF STRATEGIST FOR THE COMPANY'S WIDENING FORAY INTO INTERACTIVE COMMUNICATIONS SAID CABLE AND LOCAL TELEPHONE DISTRIBUTION FIRMS WOULD IMPEDE THE FLOW OF INFORMATION IF THEY FOLLOW CABLE'S CURRENT PRACTICES MR. KAVNER SAID T. V. PRODUCERS HAVE GREAT DIFFICULTY GETTING THEIR IDEAS AND PROGRAMS THROUGH THE CABLE INDUSTRY'S GATE AND HE PREDICTED PROVIDERS OF NEW INTERACTIVE PROGRAMS WOULD FACE THE SAME OBSTACLE IF THE GATE IS NOT OPENED GETTING A PROGRAM ON CABLE WHICH PROVIDES PROGRAMMING TO SIXTY TWO POINT FOUR PERCENT OR FIFTY EIGHT MILLION OF ALL AMERICAN HOMES IS ROUGHLY AKIN TO PICNICKING WITH A TIGER MR. KAVNER SAID YOU MIGHT ENJOY THE MEAL BUT THE TIGER ALWAYS EATS LAST MR. KAVNER'S SPEECH IS A PRIME EXAMPLE OF HOW PITCHED AND HYPED THE RACE TO OFFER INTERACTIVE SERVICES HAS BECOME AMONG THE RUNNERS IN ADDITION THE A. T. AND T. ATTACK COULD BE DISMISSED BY SOME AS SELF SERVING THE COMPANY AND GENERAL MAGIC INCORPORATED A SILICON VALLEY START UP BACKED BY A. T. AND T. AND OTHER MAJOR COMPANIES INTRODUCED AT THE SHOW A NEW TECHNOLOGY THAT WILL USE ELECTRONIC AGENTS TO SIFT THROUGH THOUSANDS OF PROGRAMMING CHOICES AND THAT WILL NEED ACCESS TO THE CABLE BOXES THAT OPERATORS CONTROL MR. KAVNER'S WORDS BROUGHT A STRONG REBUTTAL FROM THE CABLE INDUSTRY WE WOULD DISAGREE WITH THE GATEKEEPER MODEL AS EVIDENCED BY THE VAST ARRAY OF CREATIVE AND INNOVATIVE PROGRAMS SEEN DAILY ON CABLE T. V. SAID PEGGY LARAMIE A NATIONAL CABLE TELEVISION ASSOCIATION SPOKESWOMAN WHO ADDED THAT SHE HAD NOT YET SEEN THE FULL TEXT OF THE SPEECH SHE POINTED OUT THAT THERE ARE DOZENS OF NEW NETWORKS BEING LAUNCHED THIS YEAR SHE ADDED QUOTE WE'RE IN A NEW ERA OF COMPETITION WHICH WILL BE MARKED BY INTEROPERABILITY AND MANY PROVIDERS QUOTE CABLE EXECUTIVES HAVEN'T INDICATED WHETHER THEY PLAN TO RENT NEW SET TOP BOXES THAT WILL BE NEEDED TO ALLOW TELEVISION VIEWERS AT HOME TO INTERACT WITH VARIOUS SERVICES SUCH AS ELECTRONIC SHOPPING AND VIDEO GAMES THAT CAN BE PLAYED TOGETHER BY PEOPLE IN DIFFERENT CITIES IF THOSE BOXES ARE RENTED MR. KAVNER SAID THAT WOULD SEVERELY CRIMP THE ABILITY OF CONSUMER ELECTRONICS COMPANIES TO MAKE COMPETITIVE AND PROFITABLE PRODUCTS WE BELIEVE IT'S A THREAT TO THE VERY SURVIVAL OF THE CONSUMER ELECTRONICS INDUSTRY HE SAID A. T. AND T.'S ASSAULT ON CABLE COMES AT A TIME WHEN THE CLINTON ADMINISTRATION IS CONTEMPLATING HOW TO ENSURE THAT BOTH USERS AND PROVIDERS OF THE INFORMATION HIGHWAY GAIN OPEN ACCESS VICE PRESIDENT AL GORE IS TO DISCUSS THE ISSUE NEXT TUESDAY AT A GATHERING IN LOS ANGELES WITH INDUSTRY OFFICIALS MARK ROBICHAUX IN NEW YORK CONTRIBUTED TO THIS ARTICLE RAYTHEON COMPANY'S BEECH AIRCRAFT UNIT SAID IT RECEIVED A ONE HUNDRED THIRTY THREE MILLION DOLLAR CONTRACT FROM THE AIR FORCE FOR PILOT TRAINING AIRCRAFT THE CONTRACT CALLS FOR THIRTY FIVE T. ONE A JAYHAWK AIRCRAFT TO BE DELIVERED FROM JULY NINETEEN NINETY FIVE TO JUNE NINETEEN NINETY SIX THE PLANE IS A MILITARY VERSION OF THE BEECHJET FOUR HUNDRED A BUSINESS JET BEECH AIRCRAFT LOCATED IN WICHITA KANSAS SAID IT HAS RECEIVED OVERALL AIR FORCE CONTRACTS TOTALING SIX HUNDRED TWENTY EIGHT MILLION DOLLARS FOR ONE HUNDRED FORTY EIGHT JAYHAWKS THE TOTAL ORDER IS EXPECTED TO BE FOR ONE HUNDRED EIGHTY JAYHAWKS RAYTHEON WHICH IS BASED IN LEXINGTON MASSACHUSETTS IS AN ELECTRONICS AND AEROSPACE CONCERN THE U. S. CANADA AND MEXICO ARE CONSIDERING INDUSTRY PROPOSALS TO SPEED UP TARIFF CUTS UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT THE NAFTA ACCORD WHICH TOOK EFFECT JANUARY FIRST REQUIRES THE THREE COUNTRIES TO REMOVE MOST TARIFFS ON EACH OTHER'S GOODS WITHIN THE NEXT TEN YEARS A CANADIAN OFFICIAL SAID PRODUCTS THAT MAY BE ALLOWED TO TRADE FREE OF TARIFF SOONER THAN PLANNED INCLUDE DRY BEANS FLAT GLASS MAJOR HOUSEHOLD APPLIANCES POTATOES WINE APPLIANCE TIMERS PADLOCKS AND VARIOUS RAILCAR COMPONENTS THE OFFICIAL SAID THE THREE COUNTRIES EXPECT TO RECEIVE INDUSTRY PROPOSALS WITHIN THE NEXT FEW WEEKS TO ACCELERATE TARIFF CUTS ON OTHER GOODS THE NAFTA ACCORD BROADENS THE FIVE YEAR OLD U. S. CANADA FREE TRADE AGREEMENT TO INCLUDE MEXICO THE U. S. AND CANADA IN RESPONSE TO INDUSTRY REQUESTS MADE ACCELERATED TARIFF CUTS ON THREE OCCASIONS IN NINETEEN NINETY NINETEEN NINETY ONE AND NINETEEN NINETY THREE UNDER THE ORIGINAL U. S. CANADA PACT CITY HOLDING COMPANY IN CHARLESTON WEST VIRGINIA SAID IT AGREED TO ACQUIRE LINCOLN SAVINGS BANK IN A STOCK SWAP WITH AN INDICATED VALUE OF ABOUT SIXTY EIGHT MILLION DOLLARS THE MOVE MARKS CITY HOLDING'S FIRST FORAY OUTSIDE WEST VIRGINIA AND IS ITS FIFTH ACQUISITION IN THE PAST TWO YEARS THE AGREEMENT WHICH IS STILL SUBJECT TO APPROVAL OF REGULATORY AUTHORITIES AND THE SHAREHOLDERS OF BOTH COMPANIES CALLS FOR A TAX FREE EXCHANGE OF TWO POINT TWO FIVE SHARES OF CITY HOLDING COMMON STOCK FOR EACH SHARE OF LINCOLN SAVINGS COMMON SHARES BASED ON THE JANUARY FIFTH CLOSING PRICE OF CITY HOLDING SHARES SHAREHOLDERS OF LINCOLN SAVINGS IN CARNEGIE PENNSYLVANIA WILL RECEIVE CITY HOLDING STOCK WORTH SEVENTY FIVE DOLLARS AND NINETY FOUR CENTS A SHARE THE TRANSACTION EXPECTED TO BE COMPLETED IN MID NINETEEN NINETY FOUR WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS AND RESULT IN A MARKET CAPITALIZATION OF ABOUT ONE HUNDRED SIXTY NINE MILLION DOLLARS LINCOLN SAVINGS WHICH OPERATES SEVEN BRANCHES IN THE PITTSBURGH REGION WILL BE A WHOLLY OWNED SUBSIDIARY OF CITY HOLDING RETAINING ITS NAME AND MANAGEMENT INTERNATIONAL PAPER COMPANY PURCHASE N. Y. SAID IMPROVING RESULTS AT ITS U. S. BUSINESSES ESPECIALLY IN ITS FOREST PRODUCTS OPERATION WILL LEAD TO BETTER THAN EXPECTED FOURTH QUARTER EARNINGS THE PAPER AND FOREST PRODUCTS COMPANY SAID NET INCOME WILL BE BETWEEN SEVENTY FIVE CENTS AND EIGHTY CENTS A SHARE IN THE FOURTH QUARTER ENDED DECEMBER THIRTY FIRST NINETEEN NINETY TWO NET INCOME EXCLUDING A CHARGE WAS EIGHTY SEVEN MILLION DOLLARS OR SEVENTY ONE CENTS A SHARE ON SALES OF THREE POINT FOUR BILLION DOLLARS INTERNATIONAL PAPER ADDED THAT QUOTE FAVORABLE QUOTE PERFORMANCE AT ITS MILLING OPERATIONS ALSO WILL CONTRIBUTE TO THE STRONGERTHAN EXPECTED FOURTH QUARTER PERFORMANCE THE COMPANY SAID IT EXPECTS TO RELEASE FOURTH QUARTER AND FULL YEAR EARNINGS TUESDAY IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY INTERNATIONAL PAPER FELL EIGHTY SEVEN POINT FIVE CENTS TO SEVENTY ONE DOLLARS AND FIFTY CENTS THE COMPANY ANNOUNCEMENT CAME AFTER THE MARKET CLOSED SOUTHWESTERN BELL CORPORATION SAN ANTONIO SAID IT COMPLETED ITS SIX HUNDRED FIFTY MILLION DOLLAR ACQUISITION OF TWO WASHINGTON AREA CABLE TELEVISION SYSTEMS FROM CLOSELY HELD HAUSER COMMUNICATIONS INCORPORATED THE REGIONAL TELEPHONE COMPANY TOOK OVER CABLE T. V. MONTGOMERY SERVING MONTGOMERY COUNTY MARYLAND AND CABLE T. V. ARLINGTON SERVING ARLINGTON COUNTY VIRGINIA AFTER RECEIVING THE NECESSARY REGULATORY AND LICENSING APPROVALS THE TRANSACTION WAS FIRST ANNOUNCED IN FEBRUARY NINETEEN NINETY THREE SARAJEVO SUFFERED INTENSE SERB SHELLING AND FIGHTING FLARED ACROSS BOSNIA BOSNIA'S CAPITAL WAS HIT BY SEVEN HUNDRED THIRTY TWO SHELLS BEFORE NOON U. N. MONITORS SAID LOCAL AUTHORITIES REPORTED EIGHT PEOPLE KILLED INCLUDING A TWO MONTH OLD BABY AND SIXTY ONE WOUNDED INCLUDING SEVERAL FRENCH PEACEKEEPERS QUOTE FOR SARAJEVO THIS IS ONE OF THE WORST DAYS SINCE THE BEGINNING OF THE AGGRESSION QUOTE STATE RUN BOSNIAN RADIO SAID CLASHES ACROSS THE FORMER YUGOSLAV REPUBLIC DIMMED PROPECTS FOR JANUARY EIGHTEENTH GENEVA PEACE TALKS SEPARATELY A FORMER AMERICAN AMBASSADOR TO YUGOSLAVIA BECAME THE FIFTH U. S. CAREER DIPLOMAT IN SEVENTEEN MONTHS TO RESIGN FROM THE FOREIGN SERVICE BECAUSE OF DISAGREEMENT WITH U. S. POLICY TOWARD BOSNIA THE U. S. AMBASSADOR TO THE U. N. SHAKEN BY A VISIT TO A MASS GRAVE IN CROATIA FOR AS MANY AS THREE HUNDRED PEOPLE BELIEVED EXECUTED BY SERBS SAID THAT THE WORLD MUST KNOW THE DREADFUL STORY ATTORNEY GENERAL RENO IS LIKELY TO SEEK APPOINTMENT OF AN INDEPENDENT COUNSEL TO PROBE CLINTON'S ROLE IN AN ARKANSAS VENTURE IF CONGRESS PASSES A NEW ETHICS LAW ENABLING SUCH AN APPOINTMENT AND IF THE RE ENACTED LAW IS APPROPRIATE FOR THIS CASE THE OLD LAW PROVIDING FOR COURT NAMED INDEPENDENT COUNSELS TO INVESTIGATE HIGH LEVEL ADMINISTRATION OFFICIALS EXPIRED A YEAR AGO MEXICO'S PRESIDENT DECLARED THAT A SIXDAY UPRISING IN THE SOUTHERN STATE OF CHIAPAS WASN'T AN INDIAN REBELLION AND THAT THE INDIGENOUS POPULATION HAD REJECTED THE VIOLENCE SALINAS SPOKE AS THOUSANDS OF TROOPS PUSHED THROUGH THE EMBATTLED REGION DRIVING THE REBELS INTO THE HILLS PRESIDENT CLINTON FLEW FROM WASHINGTON TO HOT SPRINGS ARKANSAS TO BEGIN MAKING FUNERAL ARRANGEMENTS FOR HIS MOTHER VIRGINIA KELLEY SEVENTY WHO DIED EARLY YESTERDAY FROM COMPLICATIONS RELATED TO BREAST CANCER THE FUNERAL WILL BE TOMORROW MORNING THE U. S. WOULD BE FOOLISH TO IGNORE THE STRONG SHOWING OF EXTREME NATIONALISTS IN RUSSIAN ELECTIONS GORE SAID BUT SUCH CONCERNS ARE NO REASON TO STEER CLEAR HE SAID SUBBING FOR CLINTON THE VICE PRESIDENT OUTLINED THE ADMINISTRATION'S VIEW OF THE IMPORTANCE OF U. S. INVOLVEMENT IN EUROPE AND RUSSIA ISRAEL ANNOUNCED THAT IT WOULD RELEASE ONE HUNDRED ONE PALESTINIAN PRISONERS FROM THE GAZA STRIP AND WEST BANK TODAY AS A GOODWILL GESTURE ISRAEL AND THE P. L. O. REPORTEDLY ARE PLANNING TO RESUME TALKS IN EGYPT ON MONDAY CONCERNING AN ISRAELI TROOP WITHDRAWAL FROM GAZA AND JERICHO THE E. P. A. PROPOSED DOUBLING THE NUMBER OF CHEMICALS WHOSE RELEASE INTO WATER OR AIR MUST BE REPORTED TO THE AGENCY BY MANUFACTURERS THE AGENCY SAID THREE HUNDRED THIRTEEN CHEMICALS SHOULD BE ADDED TO THE LIST OF THREE HUNDRED TWENTY CHEMICALS WHOSE EMISSIONS MANUFACTURERS ARE REQUIRED TO REPORT FOR AN ANNUAL E. P. A. TOXIC RELEASE INVENTORY DEFENSE SECRETARY ASPIN SENT BACK FOR FURTHER REVIEW A DOCUMENT DEFINING RULES FOR WOMEN IN COMBAT A DEFENSE OFFICIAL SAID ASPIN WASN'T SATISFIED THAT THE DRAFT RULES DRAWN UP BY THE PENTAGON WITH ARMY AND MARINE CORPS INPUT SUFFICIENTLY OPENED COMBAT JOBS TO WOMEN THE RULES WERE TO HAVE BEEN MADE PUBLIC THIS WEEK THE WHITE HOUSE TOLD STATES THEY MUST COMPLY WITH A RULE REQUIRING THEM TO PAY FOR ABORTIONS FOR POOR WOMEN WHO ARE VICTIMS OF RAPE OR INCEST OBJECTIONS TO THE NEW ADMINISTRATION POLICY HAVE COME FROM SOME STATES THAT HAVE LAWS PERMITTING MEDICAID FUNDED ABORTION ONLY IN CASES WHERE A MOTHER'S LIFE IS IN DANGER OHIO'S SENATOR GLENN URGED EXPANSION OF A FEDERAL INVESTIGATION ON RADIATION TESTING TO INCLUDE EXPERIMENTS WITH DRUGS CHEMICALS AND PESTICIDES THE DEMOCRATIC LAWMAKER SAID IT COULDN'T BE STATED WITH CERTAINTY THAT SUCH EXPERIMENTS CONDUCTED ON U. S. CITIZENS WITHOUT THEIR INFORMED CONSENT WERE NO LONGER TAKING PLACE U. N. CHIEF BOUTROS GHALI PLANS TO RECOMMEND SHORTLY THAT A REDUCED FORCE OF AT LEAST FIFTEEN THOUSAND TROOPS STAY IN SOMALIA AFTER THE U. S. WITHDRAWS ITS SOLDIERS IN MARCH A SENIOR U. N. OFFICIAL SAID THE CURRENT U. N. TROOP LEVEL THERE IS TWENTY EIGHT THOUSAND THE U. N. IS PUSHING THE BAGHDAD GOVERNMENT TO SELL A ONE TIME LIMITED QUANTITY OF OIL ARGUING THAT SUCH A MOVE WOULD HELP LEAD TO RATHER THAN DETRACT FROM A FULL LIFTING OF AN INTERNATIONAL OIL EMBARGO IN THE FUTURE THE IRAQIS ARE BEING URGED BY U. N. AUTHORITIES TO SELL ONE POINT SIX BILLION DOLLARS IN OIL FOR HUMANITARIAN AID AND TO DEFRAY OTHER U. N. COSTS PIER ONE IMPORTS INCORPORATED SAID SALES FOR THE FIVE WEEKS ENDED JANUARY FIRST ROSE ELEVEN POINT EIGHT PERCENT TO NINETY SEVEN POINT TWO MILLION DOLLARS FROM EIGHTY SIX POINT NINE MILLION DOLLARS A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR INCREASED SIX POINT EIGHT PERCENT YEAR TO DATE SALES JUMPED NINE POINT TWO PERCENT TO SIX HUNDRED POINT SIX MILLION DOLLARS FROM FIVE HUNDRED FIFTY POINT THREE MILLION DOLLARS A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR WERE UP FIVE POINT FOUR PERCENT IN THE YEAR TO DATE PERIOD MORNINGSTAR GROUP INCORPORATED DALLAS SAID IT IS SELLING ITS FLORIDA DAIRY BUSINESS FOR FORTY EIGHT MILLION DOLLARS REORGANIZING THE REST OF THE COMPANY'S OPERATIONS AND SUSPENDING ITS DIVIDEND THE DAIRY BUSINESS MIAMI BASED VELDA FARMS ACCOUNTS FOR ONE HUNDRED THIRTY MILLION DOLLARS OF MORNINGSTAR'S ROUGHLY FOUR HUNDRED MILLION DOLLARS IN ANNUAL SALES THE SPECIALTY FOOD PRODUCTS COMPANY SAID IT SIGNED A LETTER OF INTENT TO SELL VELDA BUT WOULDN'T IDENTIFY THE BUYER THE REORGANIZATION WHICH WILL INVOLVE AN UNSPECIFIED NUMBER OF JOB CUTS IS EXPECTED TO SAVE AT LEAST FIVE MILLION DOLLARS A YEAR IT IS RESULTING IN A NINE MILLION DOLLAR CHARGE AGAINST FOURTH QUARTER EARNINGS MORNINGSTAR SAID IT WILL SUSPEND ITS DIVIDEND AFTER PAYMENT ON JANUARY TWENTIETH OF AN ALREADY DECLARED THREE POINT SEVEN FIVE CENT DIVIDEND TO STOCK OF RECORD DECEMBER THIRTY FIRST THE MOVES ARE THE COMPANY'S FIRST MAJOR STEPS SINCE C. DEAN METROPOLOUS FORMER PRESIDENT AND CHIEF EXECUTIVE OF STELLA FOODS INCORPORATED WAS NAMED CHAIRMAN ULTRALIFE BATTERIES INCORPORATED SAID IT PAID ABOUT TWO MILLION DOLLARS TO EASTMAN KODAK COMPANY IN FINAL SETTLEMENT OF A NOTE PAYABLE FUTURE ROYALTIES PAST INVENTORY PURCHASES AND ACCRUED INTEREST ON THE PROMISSORY NOTE ULTRALIFE BASED IN NEWARK N. Y. WAS FORMED IN NINETEEN NINETY ONE WHEN IT AGREED TO ACQUIRE LITHIUM BATTERY TECHNOLOGY AND THE QUOTE ULTRALIFE QUOTE BRAND NAME FROM KODAK ROCHESTER N. Y. ULTRALIFE SAID THE PROMISSORY NOTE IN THE AMOUNT OF ONE POINT EIGHT MILLION DOLLARS AND ACCRUED INTEREST WAS DUE MARCH TWELFTH NINETEEN NINETY SEVEN ULTRALIFE SAID PREPAYMENT COMPLETES ALL OBLIGATIONS UNDER THE ASSET PURCHASE AGREEMENT BETWEEN ULTRALIFE AND KODAK SEPARATELY ULTRALIFE SAID IT HAS BEEN NOTIFIED THAT IT WON A SEVEN HUNDRED FIFTY THOUSAND DOLLAR U. S. ARMY CONTRACT FOR DEVELOPMENT OF HIGH ENERGY LITHIUM BATTERIES UNDER THE CONTRACT WHICH THE COMPANY SAID IT PLANS TO FINALIZE SHORTLY IT WILL PROVIDE THE ARMY WITH A LITHIUM MANGANESE DIOXIDE BATTERY DIXONS P. L. C. A U. K. ELECTRONICS CONCERN SAID IT HAD A PRETAX LOSS OF ONE HUNDRED NINETY SIX POINT SEVEN MILLION POUNDS TWO HUNDRED NINETY TWO POINT SEVEN MILLION DOLLARS IN THE SIX MONTHS ENDED NOVEMBER THIRTEENTH AFTER AN EXCEPTIONAL LOSS OF TWO HUNDRED TEN POINT FIVE MILLION POUNDS THE LOSS COMPARED WITH PROFIT OF FOURTEEN MILLION POUNDS A YEAR EARLIER SALES ROSE TWENTY FIVE PERCENT TO ONE POINT ONE BILLION POUNDS ONE POINT SIX FOUR BILLION DOLLARS FROM EIGHT HUNDRED SEVENTY THREE POINT FOUR MILLION POUNDS DIXONS SAID HOLIDAY SALES WERE CLOSE TO A YEAR EARLIER AND QUOTE U. K. RETAIL OPERATING PROFIT FOR THE CURRENT FINANCIAL YEAR NOW APPEARS UNLIKELY TO EQUAL LAST YEAR'S LEVEL QUOTE ON THE LONDON STOCK EXCHANGE STORES SHARES ENDED GENERALLY WEAKER AFTER DIXONS NOTED THE FLAT HOLIDAY SALES DIXON FELL FIFTEEN PERCENT TO TWO HUNDRED FORTY PENCE THREE POINT FIVE SEVEN ONE DOLLARS FROM TWO HUNDRED EIGHTY THREE PENCE THE EXCEPTIONAL LOSS OF TWO HUNDRED TEN POINT FIVE MILLION POUNDS WAS DUE TO THE DISPOSAL OF ITS SILO RETAILING UNIT IN THE U. S. IN SEPTEMBER BEFORE EXCEPTIONALS DIXONS PRETAX PROFIT WAS SEVENTEEN POINT THREE MILLION POUNDS MOTION SICKNESS NOT EUPHORIA IS WHAT BOND MARKET PLAYERS ARE FEELING AFTER YESTERDAY'S RALLY THAT'S BECAUSE FOR THE FOURTH CONSECUTIVE SESSION BOND PRICES SHARPLY REVERSED THEMSELVES ON MONDAY THE PRICE OF THE BENCHMARK THIRTY YEAR TREASURY BOND DROPPED A POINT OR TEN DOLLARS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE ON TUESDAY IT ROSE NEARLY A POINT ON WEDNESDAY IT DROPPED THREE QUARTERS POINT AND YESTERDAY IT ROSE THREE QUARTERS POINT TO NINETY EIGHT AND TWENTY ONE THIRTY SECONDS VERY CLOSE TO WHERE IT STARTED THE WEEK TO YIELD SIX POINT THREE FOUR PERCENT PART OF THE REASON FOR THE ROCKY RIDE IS WORRY ABOUT THE STATE OF THE NATION'S ECONOMY AFTER ECONOMIC GROWTH PICKED UP IN THE FOURTH QUARTER OF LAST YEAR INVESTORS ARE BEGINNING TO BELIEVE THAT GROWTH COULD CONTINUE THIS QUARTER GREATER ECONOMIC GROWTH COULD MEAN HIGHER INFLATION WHICH HURTS BOND RETURNS THERE WERE TWO FACTORS RESPONSIBLE FOR YESTERDAY'S PRICE BOUNCE ONE WAS A REPORT ON INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE WHICH SHOWED A LARGER JUMP THAN EXPECTED FOR THE WEEK ENDED JANUARY FIRST THE OTHER WAS LABOR SECRETARY ROBERT REICH WHO OFFERED HIS OWN PREDICTION FOR THE STATE OF THE COUNTRY'S JOB MARKET WITH THE OFFICIAL REPORT DUE TO BE RELEASED THIS MORNING AND MR. REICH'S PRESUMED ACCESS TO ALL THE LATEST EMPLOYMENT DATA THE BOND MARKET TOOK MR. REICH'S ESTIMATE AT FACE VALUE AND RALLIED THAT'S BECAUSE MR. REICH'S PERSONAL ESTIMATE SHOWED FEWER JOBS BEING CREATED IN DECEMBER THAN MANY ON WALL STREET HAVE BEEN EXPECTING THIS WAS A RELIEF TO MANY BOND INVESTORS WHO HAD BEEN WORRYING THAT THE REPORT MIGHT SHOW A SURPRISING JUMP BUT MR. REICH'S OFFICE DENIED THAT HE HAD ANY ADVANCE KNOWLEDGE OF THE DATA QUOTE HE HAS NO IDEA ABOUT WHAT THE NUMBER WILL BE QUOTE A SPOKESPERSON FOR MR. REICH SAID HE WAS SIMPLY MAKING AN ESTIMATE BUT MANY BOND TRADERS SHRUGGED OFF THE COMMENTS FROM MR. REICH'S OFFICE AND CONTINUED TO ASSUME THAT MR. REICH'S ESTIMATE OF ONE HUNDRED SIXTY THOUSAND TO TWO HUNDRED THOUSAND NEW NONFARM POSITIONS IN DECEMBER WOULD COME CLOSE TO THE FINAL REPORTED NUMBER OF THE LABOR DEPARTMENT'S ATTEMPTS TO PUT A DIFFERENT SPIN ON THE REMARKS ONE HEAD BOND TRADER REMARKED THAT'S LIKE SAYING HE'S ONLY MAKING A PERSONAL ESTIMATE OF HIS OWN SALARY GIVEN THE INFORMATION THAT ONE WOULD THINK HE HAS ACCESS TO SAID JOHN COSTAS HEAD OF GOVERNMENT BOND TRADING AT C. S. FIRST BOSTON INCORPORATED IT'S A HIGHLY CREDIBLE ESTIMATE THE BOND MARKET HAD BEEN BRACING FOR A LARGER INCREASE OF AT LEAST TWO HUNDRED TWENTY FIVE THOUSAND IN NONFARM PAYROLL EMPLOYMENT AND THE COMMENTS PROVOKED A ROUND OF BUYING AS TRADERS ASSUMED THAT MR. REICH KNEW FOR A FACT WHAT THE REPORT WOULD SHOW PRICES BEGAN TO MOVE HIGHER IN EARLY TRADING AFTER MR. REICH MADE HIS COMMENTS DURING A TELECONFERENCE BROADCAST FROM WASHINGTON TO AN ECONOMIC CONFERENCE IN PARIS ACCORDING TO GEORGE WERKING CHIEF OF THE DIVISION OF MONTHLY INDUSTRY EMPLOYMENT AT THE BUREAU OF LABOR STATISTICS WHICH PRODUCES THE PAYROLL STATISTICS MR. REICH COULDN'T YET HAVE KNOWN THE ACTUAL FIGURES THE DATA ARE UNDER LOCK AND KEY AT B. L. S. HE SAID MR. WERKING SAID MR. REICH WOULD BE BRIEFED ON THE REPORT EARLY FRIDAY MORNING BEFORE THE CONFUSION OVER MR. REICH'S COMMENTS COULD BE CLEARED UP INITIAL JOBLESS CLAIMS WERE REPORTED UP A GREATER THAN EXPECTED SEVENTY THOUSAND TO THREE HUNDRED SIXTY THREE THOUSAND FOR THE WEEK ENDED JANUARY FIRST ANALYSTS SAID THE CLAIMS DATA ARE TYPICALLY VERY VOLATILE DURING THE HOLIDAY SEASON AND THAT THE RISE WAS SIMPLY A REBOUND FROM THE PREVIOUS WEEK BUT COMING ON THE HEELS OF MR. REICH'S REMARKS THE FIGURES MERELY ADDED FUEL TO THE FIRE AND BOND PRICES SURGED THE COMBINATION OF THE TWO WAS PRETTY DAMN POWERFUL SAID MR. COSTAS OF FIRST BOSTON CONTRIBUTING TO THE RALLY WAS A NEGATIVE BIAS ON WALL STREET AGAINST THE BOND MARKET SAID MR. COSTAS MANY WALL STREET FIRMS EITHER DIDN'T OWN ENOUGH BONDS TO MEET DEMAND YESTERDAY OR HAD ACTUALLY SOLD SHORT TO PROFIT FROM AN EXPECTED DROP IN BOND PRICES SAID MR. COSTAS THE RESULT WAS THAT FIRMS WERE FORCED TO BUY BONDS IN THE OPEN MARKET WHICH ADDED TO THE RALLY A TRADER TAKES A SHORT POSITION BY SELLING A BORROWED SECURITY IN HOPES OF BUYING IT BACK LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE THE COMBINATION OF THE INITIAL CLAIMS DATA AND MR. REICH'S STATEMENT QUOTE CAUGHT THE MARKET SHORT QUOTE SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA INCORPORATED AND DESPITE THE CLARIFICATIONS OF MR. REICH'S REMARK AND A BELIEF THAT THE CLAIMS RISE WAS FLUKE THE BOND PRICES SUSTAINED THEIR GAINS THE TIMING OF MR. REICH'S COMMENTS PUZZLED MANY TRADERS AND ANALYSTS IN THE BOND MARKET GIVEN THE FACT THAT HE'S THE SECRETARY OF LABOR IT STANDS TO REASON THAT HE HAS A CONCEPT OF THE NUMBER SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INCORPORATED WHO ADDED THAT IT MAY NOT NECESSARILY BE THE FINAL NUMBER BUT MR. FINE SAID IT'S FAIR TO SAY THAT IF HE'S FAR FROM THE MARK WHEN THE NUMBERS ARE ANNOUNCED THIS MORNING THERE WILL BE A CREDIBILITY PROBLEM AND IF MR. REICH'S PREDICTION WAS ACCURATE POINTED OUT WILLIAM SULLIVAN A SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INCORPORATED IT RAISES THE QUESTION OF WHETHER AN OFFICIAL NEWS EMBARGO ON THE EMPLOYMENT REPORT IS BEING OBSERVED ACCORDING TO ANALYSTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT NONFARM PAYROLL EMPLOYMENT SHOULD POST AN INCREASE OF TWO HUNDRED THIRTY NINE THOUSAND THAT WOULD FOLLOW A TWO HUNDRED EIGHT THOUSAND INCREASE REGISTERED IN NOVEMBER THE UNEMPLOYMENT RATE MEANWHILE IS EXPECTED TO RISE TO SIX POINT FIVE PERCENT FROM SIX POINT FOUR PERCENT MEANWHILE YESTERDAY THE TREASURY SOLD SIXTEEN POINT OH THREE BILLION DOLLARS OF ONE YEAR BILLS AT AN AVERAGE DISCOUNT RATE OF THREE POINT FIVE TWO PERCENT HERE ARE DETAILS FROM THE AUCTION 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 JANUARY THIRTEENTH AND MATURE JANUARY TWELFTH NINETEEN NINETY FIVE ISSUERS SOLD ONE POINT FOUR ONE BILLION DOLLARS OF CORPORATE DEBT PRIMARILY IN SHORTER MATURITIES FORD MOTOR CREDIT COMPANY A UNIT OF FORD MOTOR COMPANY WAS ABLE TO TAKE ADVANTAGE OF IMPROVING YIELD SPREADS AMONG AUTOMOBILE COMPANY BONDS TO SELL FIVE HUNDRED MILLION DOLLARS OF DEBT A YIELD SPREAD IS THE DIFFERENCE BETWEEN TREASURY AND CORPORATE BOND YIELDS A NARROWER YIELD SPREAD CAN BE A SIGN OF INCREASING DEMAND FOR A COMPANY'S BONDS AS WELL AS IMPROVEMENT IN ITS BALANCE SHEETS FORD SOLD FIVE YEAR NOTES WITH FIVE POINT SIX TWO FIVE PERCENT COUPONS AT NINETY NINE POINT EIGHT FIVE SEVEN TO YIELD FIVE POINT SIX FIVE EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ZERO POINT FOUR FIVE PERCENTAGE POINT ABOVE TREASURYS WITH COMPARABLE MATURITIES THE NOTES ARE RATED SINGLE A TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE A BY STANDARD AND POOR'S CORPORATION AND WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED PRICES OF INVESTMENT GRADE BONDS FOLLOWED THE TREASURY MARKET HIGHER WHILE MANY PRICES IN THE JUNK BOND MARKET ALSO ROSE CANADIAN YANKEE BONDS OR DOLLAR DENOMINATED DEBT SOLD BY CANADIAN ENTITIES IN THIS COUNTRY IMPROVED SLIGHTLY YESTERDAY THERE WAS ACTIVE BUYING BY DEALERS WHILE INVESTORS REACTED TO NEWS THAT UTILITY HYDRO QUEBEC PLANS TO ISSUE ONE BILLION CANADIAN DOLLARS SEVEN HUNDRED FIFTY SEVEN POINT SIX MILLION DOLLARS OF TEN YEAR GLOBAL BONDS TRADERS SAID PRICES OF MOST MUNICIPAL BONDS ENDED HIGHER BUT BUYING WAS LIMITED BEFORE THE RELEASE OF THE DECEMBER EMPLOYMENT DATA IN SECONDARY TRADING CHICAGO'S FIVE POINT SEVEN FIVE PERCENT GAS SUPPLY REVENUE BONDS OF TWO THOUSAND TWENTY THREE CLOSED ONE EIGHTH POINT HIGHER AT NINETY EIGHT AND SEVEN EIGHTHS TO YIELD FIVE POINT EIGHT OH PERCENT IN THE PRIMARY MARKET A PAINEWEBBER INCORPORATED GROUP SET YIELDS FOR THE CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY'S THREE HUNDRED THIRTY THREE POINT EIGHT MILLION DOLLAR ISSUE OF REFUNDING BONDS THERE WAS A REPRICING YESTERDAY AFTERNOON DUE TO STRONG DEMAND AND SOME YIELDS WERE LOWERED ZERO POINT ZERO THREE TO ZERO POINT ZERO FIVE PERCENTAGE POINT FOR BOTH THE ONE HUNDRED THIRTY POINT SIX MILLION DOLLARS OF NINETEEN NINETY FOUR SERIES A HEALTH FACILITY REFUNDING REVENUE BONDS AND THE TWO HUNDRED THREE POINT TWO MILLION DOLLARS OF NINETEEN NINETY FOUR SERIES B. HEALTH FACILITY REFUNDING REVENUE BONDS AFTER THE REPRICING THE NINETEEN NINETY FOUR SERIES A BONDS WERE PRICED TO YIELD FROM TWO POINT THREE FOUR PERCENT IN NINETEEN NINETY FOUR TO FIVE POINT FOUR TWO PERCENT IN TWO THOUSAND NINETEEN THOSE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S INVESTORS SERVICE INCORPORATED AND STANDARD AND POOR'S CORPORATION THE NINETEEN NINETY FOUR SERIES B. BONDS WERE PRICED TO YIELD FROM TWO POINT THREE FOUR PERCENT IN NINETEEN NINETY FOUR TO FIVE POINT FOUR SEVEN PERCENT IN TWO THOUSAND TWENTY ONE THEY ARE INSURED BY AMBAC INDEMNITY CORPORATION AND ALSO CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. PRICES OF MORTGAGE SECURITIES MOVED HIGHER THOUGH NOT MATCHING THE GAINS OF THE TREASURY MARKET MORTGAGES OFTEN LAG BEHIND TREASURYS IN A MARKET RALLY IN PART BECAUSE OF THE PREPAYMENT CONCERNS THAT GREET ANY SLIP IN RATES BUT MORTGAGES ALSO MAY HAVE BEEN UNDER SOME PRESSURE AFTER HAVING REACHED FAIRLY HIGH LEVELS THE YIELDS ON CURRENT COUPONS OR MORTGAGES WITH COUPONS OF SIX POINT FIVE PERCENT HAVE NARROWED CONSIDERABLY TO THE BENCHMARK TREASURY TEN YEAR NOTE SINCE LAST FRIDAY AS DEALERS HAVE SCOOPED UP COLLATERAL FOR REAL ESTATE MORTGAGE INVESTMENT TRUSTS IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SIX POINT FIVE PERCENT ISSUES FOR JANUARY DELIVERY ENDED EIGHT THIRTY SECONDS HIGHER AT NINETY NINE AND EIGHT THIRTY SECONDS FEDERAL HOME LOAN MORTGAGE CORPORATION GOLD SIX POINT FIVE PERCENT ISSUES ENDED NINE THIRTY SECONDS HIGHER AT NINETY NINE AND FOURTEEN THIRTY SECONDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION SIX POINT FIVE PERCENT ISSUES ENDED NINE THIRTY SECONDS HIGHER AT NINETY NINE AND TEN THIRTY SECONDS DESPITE YESTERDAY'S DROP IN RATES THE PREVAILING VIEW IN THE MORTGAGE MARKET IS THAT PREPAYMENTS DUE TO HOME LOAN REFINANCINGS WILL SLOW MARKEDLY THIS YEAR THOMAS D. LAURICELLA CONTRIBUTED TO THIS ARTICLE JAPANESE CONCERNS ASAHI BREWERIES LIMITED AND ITOCHU CORPORATION ANNOUNCED THURSDAY THAT THEY REACHED AN AGREEMENT TO BUY A SEVENTY FIVE PERCENT STAKE IN HONG KONG BASED C. S. I. BREWERY LIMITED FROM CHINA STRATEGIC INVESTMENT LIMITED THE PURCHASE GIVES THE BEER MAKER AND THE TRADING HOUSE MANAGEMENT RIGHTS OVER THREE BREWERS IN CHINA HONGZHOU ZHONGCE BEER COMPANY QUANZHOU C. S. I. BEER COMPANY AND HONGZHOU ZHONGCE BEER COMPANY'S JIAXING COMPANY THE INVESTMENT INCLUDING VALUE OF SHARES AND OUTLAYS TO EXPAND PRODUCTION EQUIPMENT AT HONGZHOU ZHONGCE TOTALS ABOUT THIRTY FIVE MILLION DOLLARS AN ASAHI SPOKESMAN SAID ASAHI BREWERIES WILL PROVIDE TECHNICAL SUPPORT AND WILL LICENSE PRODUCTION TO THE THREE BREWERIES IN CHINA THE TWO JAPANESE COMPANIES WILL CONTROL THE BREWERIES THROUGH A STAKE IN CHINA STRATEGIC INVESTMENT OF WHICH ASAHI BREWERIES WILL TAKE FORTY FIVE PERCENT WHILE ITOCHU WILL HOLD THIRTY PERCENT OF THE HONG KONG BASED COMPANY GENERAL ELECTRIC COMPANY STAMFORD CONNECTICUT SAID ITS G. E. INVESTMENTS UNIT WILL OFFER A LINE OF MUTUAL FUNDS THROUGH BANKS THE FAMILY OF SIX FUNDS WAS LAUNCHED A YEAR AGO BUT THEY HAVEN'T BEEN AVAILABLE THROUGH BANKS INCLUDED ARE U. S. EQUITY GLOBAL EQUITY TAX EXEMPT FIXED INCOME STRATEGIC INVESTMENT AND MONEY MARKET MUTUAL FUNDS G. E. INVESTMENTS WHICH CURRENTLY MANAGES ABOUT NINE BILLION DOLLARS IN MUTUAL FUNDS FOR EMPLOYEES AS WELL AS SAVINGS AND BENEFIT PLANS SAID THE NEW MUTUAL FUNDS WILL INITIALLY BE OFFERED THROUGH NEW YORK BASED CHEMICAL BANKING CORPORATION AND FOUNDERS BANK NAPLES FLORIDA COLOMBIA AN OFFERING OF UP TO TWO HUNDRED MILLION DOLLARS OF NOTES VIA MERRILL LYNCH AND COMPANY J. P. MORGAN SECURITIES INCORPORATED AND SALOMON BROTHERS INCORPORATED EASTMAN CHEMICAL COMPANY A SHELF OFFERING FOR NINE HUNDRED MILLION DOLLARS OF DEBT SECURITIES VIA GOLDMAN SACHS AND COMPANY MERRILL LYNCH AND MORGAN STANLEY AND COMPANY HEALTHDYNE INCORPORATED AN OFFERING OF ONE MILLION SEVEN HUNDRED TWENTY THOUSAND COMMON SHARES AND A PARTIAL EXCHANGE OFFERING UPON EFFECTIVENESS OF THE REGISTRATION STATEMENT FOR TWO MILLION ONE HUNDRED FIFTY THOUSAND SHARES OF THE COMMON STOCK OF ITS HOME NUTRITIONAL SERVICES INCORPORATED UNIT BASED ON ZERO POINT EIGHT SHARE OF HEALTHDYNE STOCK FOR EACH SHARE OF HOME NUTRITIONAL SERVICES STOCK TENDERED L. A. T. SPORTSWEAR INCORPORATED AN INITIAL OFFERING OF ONE POINT TWO MILLION COMMON SHARES VIA ROBINSON HUMPHREY COMPANY WHEN THE WHITE HOUSE SACKED EVERY SITTING U. S. ATTORNEY LAST MARCH THIS SPACE HYPERBOLICALLY DEPLORED QUOTE THE MOST SECRETIVE AND DEEPLY POLITICAL QUOTE ADMINISTRATION QUOTE SINCE RICHARD NIXON'S QUOTE BY NOW THAT LOOKS UNDERSTATED WHITEWATER MAY NOT BE WATERGATE BUT THE CLINTON WHITE HOUSE'S SKILL IN HANDLING THE REAL ESTATE S. AND L. SUSPICIONS HAS CERTAINLY EARNED IT THE RIGHT TO BE CALLED NIXONIAN ITS GIFT FOR INSPIRING SUSPICION IN REPORTERS ITS MASTERY OF THE SELF INFLICTED WOUND AND ITS TALENT FOR SEEMING UNCOOPERATIVE AND SLIPPERY ARE ALL QUALITIES WORTHY OF THE MASTER HIMSELF HAVING WORKED AS STAFFERS ON THE HOUSE COMMITTEE TO IMPEACH MR. NIXON HILLARY CLINTON AND WHITE HOUSE COUNSEL BERNIE NUSSBAUM MAY HAVE ABSORBED MORE POLITICAL LESSONS THAN THEY EVER IMAGINED AS JOHN LE CARRE ONCE WROTE ABOUT THE C. I. A. AND K. G. B. MAYBE THEY FOUGHT A LOOKINGGLASS WAR LET'S EXAMINE HOW THE CLINTONS HAVE TURNED A SEEMINGLY SMALL SCANDAL INTO A POTENTIALLY MUCH BIGGER ONE INVOLVING THE ABUSE OF PRESIDENTIAL POWER THE NON DENIAL DENIAL THIS WHITE HOUSE IS ADEPT AT NOT GIVING A STRAIGHT ANSWER SO WHITEWATER WAS JUST OLD STORIES THAT WERE ALREADY INVESTIGATED NATURALLY THESE DISMISSALS NON DENIALS ONLY RAISED SUSPICIONS WHEN REPORTERS DISCOVERED NEW STORIES E. G. THAT THE LAWYER RETAINED BY THE CLINTONS TO INVESTIGATE WHITEWATER IN NINETEEN NINETY TWO HAD IGNORED LARGE TRANSACTIONS THE COVERUP WHEN VINCENT FOSTER THE CLINTONS' PERSONAL LAWYER SHOT HIMSELF IN SECLUDED FORT MARCY LAST SUMMER THE WHITE HOUSE RESPONSE WAS TO BLAME THE PRESS A CHORUS LINE OF COMMENTARY ACCUSED THIS NEWSPAPER IN PARTICULAR BUT WE'VE SINCE LEARNED THAT THE TROUBLED MR. FOSTER HAD MORE ON HIS MIND THAN TART EDITORIALS AS THE LAWYER PUTTING TOGETHER THE CLINTONS' PRESIDENTIAL BLIND TRUST HE HANDLED THE FIRST COUPLE'S PERSONAL FINANCES YET HE WAS WELL BEHIND THE PACE OF ANY RECENT PRESIDENCY IN ESTABLISHING THAT BLIND TRUST WHICH WAS FINALLY AND QUIETLY FILED A WEEK AFTER HE DIED WHAT TOOK SO LONG ON THE DAY HE DIED MR. FOSTER RECEIVED A PHONE CALL FROM JAMES LYONS THE LAWYER HE'D HIRED TO FILE THE CLINTONS' NINETEEN NINETY TWO WHITEWATER REPORT ON THE SAME DAY TOO A SUBPOENA WAS ISSUED TO SEARCH THE LITTLE ROCK OFFICES OF DAVID HALE A FORMER JUDGE APPOINTED BY MR. CLINTON MR. HALE HAS SINCE BEEN INDICTED AND HAS ACCUSED MR. CLINTON OF BENEFITING FROM A THREE HUNDRED THOUSAND DOLLAR LOAN MR. HALE MADE TO A BUSINESS PARTNER OF THE CLINTONS PERHAPS THESE ARE COINCIDENCES BUT THEY RAISE DOUBTS ESPECIALLY BECAUSE THE WHITE HOUSE HAS BEEN SO EAGER TO BLUNT QUERIES ABOUT MR. FOSTER THE PROBE OF HIS DEATH WAS CONFINED TO THE PARK POLICE WHO HAVE NO EXPERTISE IN MYSTERIOUS DEATHS THEIR REPORT ALSO REMAINS A SECRET THOUGH THE JUSTICE DEPARTMENT PROMISED TO MAKE IT PUBLIC AND DON'T FORGET THE EARLY SACKING OF THOSE U. S. ATTORNEYS THAT MEANT MR. CLINTON COULD NOMINATE PAULA CASEY A FORMER CAMPAIGN WORKER OF HIS TO THE LITTLE ROCK U. S. ATTORNEY'S POST THAT WOULD INVESTIGATE WHITEWATER SHE HAS SINCE RECUSED HERSELF BUT NOT BEFORE RECOMMENDING TO WASHINGTON THAT A CRIMINAL REFERRAL OF THE CASE TO JUSTICE BY THE RESOLUTION TRUST CORPORATION NOT BE PURSUED A MODIFIED LIMITED HANGOUT CLINTON SPIN MEISTERS KNOW THE ZIEGLERESQUE VALUE OF APPEARING TO BE FORTHCOMING EVEN WHILE STONEWALLING SO A DECEMBER TWENTY THIRD DECISION TO RELEASE WHITEWATER DOCUMENTS TAKEN IN SECRET FROM MR. FOSTER'S OFFICE WAS HAILED BY THE LIKES OF GEORGE STEPHANOPOULOS AS COMING CLEAN BUT NOW WE LEARN THAT THIS DISCLOSURE WAS RIGGED BY THE WHITE HOUSE SO AS TO AVOID HAVING TO MAKE ANY DOCUMENTS PUBLIC BY CONSPIRING TO HAVE JUSTICE ISSUE A SUBPOENA FOR THE DOCUMENTS THE WHITE HOUSE MADE SURE NOSY REPORTERS CAN'T OBTAIN THOSE DOCUMENTS UNDER THE FREEDOM OF INFORMATION ACT BILL CLINTON HAS ONE ADVANTAGE RICHARD NIXON NEVER HAD A CONGRESS OF HIS OWN PARTY HOUSE BANKING CHAIRMAN HENRY GONZALEZ WHO DID YEOMAN WORK ON THE KEATING FIVE HAS SUDDENLY LOST INTEREST IN S. AND L.S THAT'S WHY EVEN IOWA REPUBLICAN JIM LEACH THE LEAST PARTISAN MEMBER OF CONGRESS HAS CALLED FOR A SPECIAL COUNSEL THIS IS NOT DESPITE CLAIMS BY CLINTON PARTISANS THE SAME THING AS A LAWRENCE WALSH TYPE QUOTE INDEPENDENT COUNSEL QUOTE BARNEY FRANK D. MASSACHUSETTS WANTS TO USE WHITEWATER TO REVIVE THAT LAW RAMMING IT THROUGH THE HOUSE WITHOUT ALLOWING A VOTE ON WHETHER IT SHOULD COVER CONGRESS AS WELL AS THE EXECUTIVE BRANCH BUT THIS COULD ACTUALLY HELP A COVERUP BECAUSE A WHITEWATER WALSH COULD KEEP DOCUMENTS UNDER WRAPS FOR YEARS AS SCHOLAR TERRY EASTLAND REMINDS ME WATERGATE AND EVEN TEAPOT DOME WERE INVESTIGATED BY SPECIAL PROSECUTORS WITHOUT THE RUNAWAY HAIR TRIGGER WALSH TYPE STATUTE WHITEWATER COULD BE AS WELL IF THE COUNSEL WERE SOMEONE WITH THE PROVEN INTEGRITY OF MANHATTAN D. A. ROBERT MORGENTHAU SUCH A COUNSEL WOULD AT LEAST BE SUBJECT TO POLITICAL CONSTRAINTS THE WAY A WALSH TYPE COUNSEL ISN'T EVEN BETTER WOULD BE A TELEVISED CONGRESSIONAL HEARING A LA THE KEATING FIVE SO VOTERS COULD DECIDE FOR THEMSELVES WITH AN ADMINISTRATION AS NIXONIAN AS THIS ONE HOW ELSE IS IT GOING TO RESTORE ITS CREDIBILITY AIRBUS INDUSTRIE EUROPE'S LARGE COMMERCIAL AIRCRAFT CONSORTIUM SAID ITS REVENUE ROSE SEVEN POINT EIGHT PERCENT IN NINETEEN NINETY THREE TO EIGHT POINT THREE BILLION DOLLARS DESPITE A DEPRESSED MARKET THE GROUP CONSISTING OF AEROSPATIALE S. A. OF FRANCE DAIMLER BENZ A. G.'S DEUTSCHE AEROSPACE AIRBUS GMBH OF GERMANY BRITISH AEROSPACE P. L. C. OF THE U. K. AND CONSTRUCCIONES AERONAUTICAS S. A. OF SPAIN SAID IT SAW SOME SIGNS IN NINETEEN NINETY THREE THAT THE MARKET DOWNTURN WAS BOTTOMING OUT WITH SOME AIRLINES APPARENTLY MOVING OUT OF THE RED IT ADDED THERE ARE GROUNDS FOR CAUTIOUS OPTIMISM BUT AIRBUS INDUSTRIE SAID IT DOESN'T ANTICIPATE A FULL RECOVERY IN DEMAND FOR AIRLINERS BEFORE THE SECOND HALF OF THE DECADE UNDERLINING THE WEAKNESS OF THE MARKET THE CONSORTIUM BOOKED THIRTY EIGHT NEW FIRM ORDERS LAST YEAR VALUED AT THREE POINT FIVE BILLION DOLLARS COMPARED WITH ONE HUNDRED THIRTY SIX ORDERS VALUED AT NINE POINT EIGHT BILLION DOLLARS IN NINETEEN NINETY TWO THE NEW ORDERS HOWEVER WERE MORE THAN OFFSET BY SIXTY NINE CANCELLATIONS HEALTHSOUTH REHABILITATION CORPORATION BIRMINGHAM ALABAMA SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF TWENTY EIGHT REHABILITATION HOSPITALS AND FORTY FIVE OUTPATIENT CENTERS FROM NATIONAL MEDICAL ENTERPRISES INCORPORATED REHABILITATION HOSPITALS OFFER INTENSIVE TREATMENT TO HELP PATIENTS IMPROVE THEIR PHYSICAL CAPABILITIES AFTER A STROKE WORKPLACE INJURY OR OTHER TRAUMA NATIONAL MEDICAL SAID IT PLANNED TO CONCENTRATE ON ITS ACUTE CARE HOSPITALS NATIONAL MEDICAL IS UNDER SERIOUS FINANCIAL STRAIN BECAUSE IT FACES ENORMOUS LEGAL LIABILITIES IN PENDING INSURANCE COMPANY MALPRACTICE AND SHAREHOLDER LAWSUITS ACCUSING IT OF BILLING FRAUD AND PATIENT ABUSE AT ITS PSYCHIATRIC HOSPITALS IT ALSO IS THE SUBJECT OF A JUSTICE DEPARTMENT INVESTIGATION OF SUSPECTED CRIMINAL MISCONDUCT BUT ANALYSTS TENDED TO ENDORSE THE COMPANY'S CONTENTION THAT THE DEAL WAS DRIVEN AS MUCH BY STRATEGIC CONSIDERATIONS AS BY THE NEED TO RAISE CASH NATIONAL MEDICAL ENTERPRISES INCORPORATED HAS RESOLVED ALL MAJOR LITIGATION WITH INSURERS AND WITH MORE THAN HALF OF PSYCHIATRIC PATIENTS IN DISPUTES INVOLVING THE COMPANY'S PSYCHIATRIC HOSPITALS THE COMPANY ALSO HAS ESTABLISHED RESERVES FOR ALL REMAINING CIVIL LITIGATION AN ARTICLE FRIDAY REPORTED INCORRECTLY THAT NATIONAL MEDICAL IS UNDER SERIOUS FINANCIAL STRAIN BECAUSE MUCH OF THE LITIGATION WAS STILL PENDING THE PHILIPPINES' YEAR ON YEAR INFLATION RATE IN DECEMBER ROSE TO EIGHT POINT FOUR PERCENT FROM EIGHT PERCENT IN NOVEMBER AND FROM EIGHT POINT TWO PERCENT IN THE YEAR AGO PERIOD THE NATIONAL STATISTICS OFFICE REPORTED FOR THE YEAR THE AVERAGE INFLATION RATE REACHED SEVEN POINT SIX PERCENT NATIONWIDE WHICH IS ALMOST ON PAR WITH THE GOVERNMENT'S TARGET AVERAGE INFLATION RATE OF SEVEN POINT FIVE PERCENT FOR NINETEEN NINETY THREE AND LOWER THAN THE AVERAGE OF EIGHT POINT NINE PERCENT IN NINETEEN NINETY TWO IN THE LATEST CHAPTER OF AN UNUSUAL CORPORATE DISPUTE THE CHAIRMAN OF SOVEREIGN BANCORP INCORPORATED STRUCK BACK AT COMPANY OFFICERS WHO FILED A LAWSUIT AGAINST HIM TWO WEEKS AGO BY FILING A COUNTERSUIT SOVEREIGN CHAIRMAN FREDERICK J. JAINDL CHARGES IN A LAWSUIT FILED IN PHILADELPHIA FEDERAL DISTRICT COURT THAT PRESIDENT AND CHIEF EXECUTIVE OFFICER JAY S. SIDHU AND OTHERS ACTED ILLEGALLY BY PERSUADING THE BANK TO SUE HIM AND SEVERAL OTHER DIRECTORS ON DECEMBER TWENTIETH THE BANK HOLDING COMPANY ANNOUNCED THAT IT HAD BROUGHT SUIT AGAINST MR. JAINDL AND OTHERS FOR ALLEGEDLY FAILING TO DISCLOSE EFFORTS TO SELL THE COMPANY UNDER TERMS THAT WEREN'T IN THE BEST INTERESTS OF SHAREHOLDERS TERMING THE ACTION A QUOTE JOKE QUOTE MR. JAINDL SAID AT THE THE TIME THAT THE OFFICERS SUED IN ORDER TO BLOCK SOVEREIGN FROM CONSIDERING OVERTURES MADE BY TWO OTHER LARGE BANKING CONCERNS MR. JAINDL MAINTAINED THAT MR. SIDHU HOLDS OPTIONS THAT WOULD BE MADE WORTHLESS IF THE COMPANY'S OWNERSHIP WERE TO CHANGE IN THE COUNTERSUIT MR. JAINDL ASSERTS THAT MR. SIDHU STANDS TO ENJOY SUBSTANTIAL MONETARY GAINS IF A SALE OF SOVEREIGN IS POSTPONED OR AVOIDED THE SUIT ASKS THE COURT TO ENJOIN THE BANK'S OFFICERS FROM CONTINUING THEIR LAWSUIT TO PAY UNSPECIFIED DAMAGES TO SOVEREIGN AND TO BE REQUIRED TO PAY THEIR OWN LEGAL FEES MR. SIDHU DENIED THE CHARGES AGAINST HIM AND SAID THAT CONTRARY TO MR. JAINDL'S ALLEGATIONS AS SOVEREIGN'S SECOND LARGEST INDIVIDUAL SHAREHOLDER HE STANDS TO GAIN A GREAT DEAL FROM THE SALE OF THE COMPANY THE WHOLE POINT ISN'T WHETHER THE BANK SHOULD BE SOLD HE SAID BUT IS IT IN THE INTEREST OF SHAREHOLDERS TO PURSUE ALL OFFERS OR JUST THOSE THAT MR. JAINDL IS INTERESTED IN SEPARATELY MR. JAINDL RENEWED HIS CALL TO THE BOARD TO HIRE AN INVESTMENT BANK TO EXAMINE THE POSSIBLE SALE OF THE COMPANY SOVEREIGN IS A SAVINGS BANK WITH FOUR POINT THREE BILLION DOLLARS IN ASSETS AND SEVENTY NINE OFFICES IN EASTERN PENNSYLVANIA AND CENTRAL NEW JERSEY 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 NEW YORK DELAWARE TWO HUNDRED FIFTY MILLION DOLLARS OF FLOATING RATE BANK NOTES DUE JANUARY THIRTEENTH NINETEEN NINETY SIX PRICED AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WILL PAY QUARTERLY AND FLOAT WEEKLY AT EIGHTEEN BASIS POINTS OVER THREE MONTH TREASURY BILLS THE FIRST COUPON WILL BE SET JANUARY TENTH RATED SINGLE A ONE 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 LEHMAN BROTHERS INCORPORATED BANK OF NEW YORK DELAWARE IS A UNIT OF BANK OF NEW YORK COMPANY CENCALL COMMUNICATIONS CORPORATION TWO HUNDRED FIFTY MILLION DOLLARS PROCEEDS OF SENIOR REDEEMABLE DISCOUNT NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AT SIXTY POINT NINE NINE FOUR TO YIELD TEN POINT ONE TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE BONDS PAY NO INTEREST FOR FIVE YEARS AND THEREAFTER HAVE A TEN POINT ONE TWO FIVE PERCENT COUPON THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED C. A. A. BY MOODY'S THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY C. I. T. GROUP HOLDINGS INCORPORATED TWO HUNDRED FIFTY MILLION DOLLARS OF FLOATING RATE NOTES DUE JANUARY FIFTEENTH NINETEEN NINETY NINE PRICED AT PAR ACCORDING TO BONDATA CORPORATE SERVICE THE COUPON ON THE NONCALLABLE NOTES WILL BE SET JANUARY ELEVENTH AND WILL PAY AND FLOAT QUARTERLY AT ZERO POINT ONE TWO FIVE BASIS POINT OVER THREE MONTH LONDON INTERBANK OFFERED RATE RATED SINGLE A ONE BY MOODY'S AND SINGLE A PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED C. I. T. IS FORTY PERCENT OWNED BY CHEMICAL BANKING CORPORATION AND SIXTY PERCENT OWNED BY DAI ICHI KANGYO BANK LIMITED FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO HUNDRED MILLION DOLLARS OF STEP UP MEDIUM TERM NOTES DUE JANUARY NINETEENTH NINETEEN NINETY NINE PRICED AT PAR TO YIELD FOUR POINT THREE TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF TWENTY EIGHT BASIS POINTS ABOVE TREASURYS THE COUPON RISES TO FIVE POINT EIGHT FOUR PERCENT AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED FORD MOTOR CREDIT COMPANY FIVE HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH NINETEEN NINETY NINE PRICED AS FIVE POINT SIX TWO FIVES AT NINETY NINE POINT EIGHT FIVE SEVEN TO YIELD FIVE POINT SIX FIVE EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF FORTY FIVE 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 SALOMON BROTHERS INCORPORATED FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR COMPANY UNION PACIFIC CORPORATION EIGHTY SEVEN POINT NINE MILLION DOLLARS OF EQUIPMENT TRUST CERTIFICATES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED INITIALLY AT PAR TO YIELD SIX POINT ONE TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE CERTIFICATES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF THIRTY BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED DOUBLE A ONE BY MOODY'S AND DOUBLE A PLUS BY S. AND P. AND SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS AND COMPANY WACHOVIA BANK NORTH CAROLINA ONE HUNDRED MILLION DOLLARS OF FLOATING RATE MEDIUM TERM BANK NOTES DUE JANUARY FIFTEENTH NINETEEN NINETY SIX PRICED AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE COUPON WILL PAY AND FLOAT QUARTERLY AT SIX POINT TWO FIVE BASIS POINTS UNDER THE THREE MONTH LIBOR THE FIRST COUPON WILL BE SET JANUARY FOURTEENTH RATED DOUBLE A TWO BY MOODY'S AND DOUBLE A PLUS BY S. AND P. THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY AND COMPANY WACHOVIA IS A UNIT OF FIRST WACHOVIA CORPORATION ADELPHIA COMMUNICATIONS CORPORATION EIGHT POINT EIGHT MILLION CLASS A COMMON SHARES PRICED AT EIGHTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY THREE HUNDRED THIRTY THREE POINT EIGHT MILLION DOLLARS OF BONDS PRICED BY A PAINEWEBBER INCORPORATED GROUP THE ONE HUNDRED THIRTY POINT SIX MILLION DOLLARS OF NINETEEN NINETY FOUR SERIES A HEALTH FACILITY REFUNDING REVENUE BONDS ARE PRICED TO YIELD FROM TWO POINT THREE FOUR PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT FOUR TWO PERCENT IN TWO THOUSAND NINETEEN THESE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. YIELDS FOR THE TWO HUNDRED THREE POINT TWO MILLION DOLLARS OF NINETEEN NINETY FOUR SERIES B. HEALTH FACILITY REFUNDING REVENUE BONDS RANGE FROM TWO POINT THREE FOUR PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT FOUR SEVEN PERCENT IN TWO THOUSAND TWENTY ONE THE BONDS ARE INSURED BY AMBAC INDEMNITY CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. AMERICAN EXPRESS BANK LIMITED U. S. PARENT TWO HUNDRED MILLION DOLLARS OF SUBORDINATED FLOATING RATE EURONOTES DUE FEBRUARY TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY NINE POINT SEVEN FIVE VIA LEHMAN BROTHERS INTERNATIONAL PAYABLE SEMIANNUALLY AT SIX MONTH DOLLAR LIBOR PLUS TEN BASIS POINTS MINIMUM COUPON FIVE PERCENT FEES ZERO POINT FIVE AMERICAN TELEPHONE AND TELEGRAPH COMPANY U. S. FOUR HUNDRED MILLION DOLLARS OF FIVE POINT FIVE PERCENT EUROBONDS DUE FEBRUARY FIRST NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT ONE SEVEN VIA C. S. FIRST BOSTON LIMITED REOFFERED AT NINETY NINE POINT FIVE NINE FIVE TO YIELD FIVE POINT SIX PERCENT A MARGIN OF TWENTY FIVE BASIS POINTS ABOVE FIVE YEAR U. S. TREASURY FEES ONE POINT EIGHT SEVEN FIVE AUSTRIA SOVEREIGN SIXTY BILLION YEN OF THREE POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY THIRD TWO THOUSAND NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT TWO ONE VIA GOLDMAN SACHS INTERNATIONAL LIMITED AND I. B. J. INTERNATIONAL LIMITED BONDS YIELD THREE POINT EIGHT TWO PERCENT FEES ZERO POINT THREE SEVEN FIVE B. H. F. FINANCE NETHERLANDS B. V. GERMAN PARENT TWO HUNDRED MILLION MARKS OF SIX PERCENT BONDS DUE FEBRUARY TENTH TWO THOUSAND FOUR AT ISSUE PRICE PAR VIA BERLINER HANDELS UND FRANKFURTER BANK GUARANTOR B. H. F. BANK FEES UNDISCLOSED CANADIAN WHEAT BOARD CANADIAN AGENCY TWO HUNDRED FIFTY MILLION DOLLARS OF FOUR POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY THIRD NINETEEN NINETY SEVEN AT ISSUE PRICE ONE HUNDRED ONE POINT ONE OH SEVEN FIVE VIA U. B. S. LIMITED REOFFERED AT NINETY NINE POINT NINE TWO TO YIELD FOUR POINT SEVEN EIGHT PERCENT LAUNCHED OFF EUROMEDIUM TERM NOTE PROGRAM FEES ONE POINT THREE SEVEN FIVE DEUTSCHE BAU UND BODEN BANK A. G. GERMANY ONE HUNDRED MILLION MARKS OF REVERSE COUPON COLLARED FLOATING RATE NOTES DUE FEBRUARY FOURTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT THREE VIA DEUTSCHE GENOSSENSCHAFTSBANK COUPON FIVE POINT SIX PERCENT ANNUAL FOR FIRST THREE YEARS THEREAFTER SEMIANNUAL COUPON FLAT AT SIX MONTH MARK LIBOR MINIMUM COUPON FIVE PERCENT MAXIMUM SEVEN POINT TWO FIVE PERCENT FEES ONE POINT SEVEN LESS ZERO POINT ONE FIVE FOR LEAD MANAGER D. S. L. FINANCE B. V. AMSTERDAM GERMAN PARENT ONE BILLION MARKS OF FIVE PERCENT EUROBONDS DUE FEBRUARY NINTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT ONE FIVE VIA DRESDNER BANK A. G. REOFFERED AT NINETY NINE POINT FOUR TO YIELD FIVE POINT ONE FOUR PERCENT A MARGIN OF TWELVE BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR DEUTSCHE SIEDLUNGS UND LANDESRENTENBANK FEES TWO EUROPEAN COAL AND STEEL COMMUNITY SUPRANATIONAL FIFTY MILLION POUNDS OF SIX POINT EIGHT SEVEN FIVE PERCENT EUROBONDS DUE JANUARY TWENTY FIFTH TWO THOUSAND NINETEEN AT ISSUE AND REOFFER PRICE NINETY NINE POINT SEVEN ONE EIGHT VIA BARCLAYS DE ZOETE WEDD SECURITIES LIMITED BONDS YIELD SIX POINT NINE PERCENT A SPREAD OF TWENTY FIVE BASIS POINTS ABOVE EIGHT POINT SEVEN FIVE PERCENT U. K. GILT OF TWO THOUSAND SEVENTEEN FEES UNDISCLOSED FORD CREDIT EUROPE P. L. C. U. S. PARENT ONE HUNDRED MILLION POUNDS OF FLOATING RATE EURONOTES DUE FEBRUARY NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT FIVE VIA BARING BROTHERS AND COMPANY PAYABLE QUARTERLY AT THREE MONTH POUND LIBOR PLUS ZERO POINT TWO FIVE BONDS CALLABLE AT PAR AFTER THREE YEARS LAUNCHED OFF EURO MEDIUM TERM NOTE PROGRAM FEES ZERO POINT TWO TWO FIVE STATE BANK OF NEW SOUTH WALES AUSTRALIA TWO HUNDRED FIFTY MILLION AUSTRALIAN DOLLARS OF SEVEN PERCENT EUROBONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT THREE SEVEN FIVE VIA DEUTSCHE BANK A. G. LONDON BONDS YIELD SEVEN POINT TWO FIVE PERCENT AFTER FEES OF TWO POINT ONE TWO FIVE A MARGIN OF TWENTY THREE BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT BOND GUARANTOR GOVERNMENT OF NEW SOUTH WALES TIBOR NAGY JUNIOR OF THE TUCSON ARIZONA LAW FIRM SNELL AND WILMER REPRESENTED MCDONNELL DOUGLAS HELICOPTER COMPANY A UNIT OF MCDONNELL DOUGLAS CORPORATION IN A WRONGFUL TERMINATION SUIT THAT WAS DESCRIBED IN AN ARTICLE LAST FRIDAY THE ARTICLE INCORRECTLY REPORTED THAT MR. NAGY REPRESENTED THE PLAINTIFF IN THE CASE THE DISCLOSURE LAST MONTH THAT AMERICA WEST AIRLINES HAS ONE FIRM BUYOUT OFFER AND AS MANY AS FIVE MORE IN THE WINGS HAS SENT THE STOCK OF THE PHOENIX BASED CARRIER FLYING IN RECENT WEEKS THE STOCK WHICH CLOSED AT ONE DOLLAR AND FIFTY THREE CENTS A SHARE YESTERDAY IN NASDAQ STOCK MARKET TRADING IS BARELY AIRBORNE IN COMPARISON TO RIVALS BUT THE SURGE FROM NINETEEN CENTS A SHARE IN DECEMBER NINETEEN NINETY TWO TO ONE DOLLAR AND FORTY THREE CENTS LAST MONTH MADE AMERICA WEST THE BEST PERFORMING AIRLINE STOCK IN NINETEEN NINETY THREE WITH ITS SHARES RISING MORE THAN SIX HUNDRED PERCENT IN VALUE QUOTE WE HAVE INDIVIDUALS SEEING A VERY PROFITABLE COMPANY AND A LOW PRICED EQUITY AND SAYING AHA HERE'S A WAY TO MAKE SOME MONEY SAYS SAM BUTTRICK AN AIRLINE ANALYST WITH KIDDER PEABODY INCORPORATED THEY'RE OVERLOOKING THE SOMEWHAT DELICATE FACT THAT AMERICA WEST IS OPERATING IN CHAPTER ELEVEN AND THE DISPOSITION OF ITS EQUITY IS UNCERTAIN AT BEST AMERICA WEST HAS BEEN OPERATING UNDER BANKRUPTCY COURT PROTECTION SINCE NINETEEN NINETY ONE INDEED MUCH OF THE STOCK'S RECENT MOVEMENT APPEARS TO BE THE RESULT OF A SHORT SQUEEZE AMONG INVESTORS BETTING THE AIRLINE'S WARNINGS ARE TRUE THAT IT WILL WIPE OUT COMMON AND PREFERRED SHARES ONCE IT EMERGES FROM CHAPTER ELEVEN BANKRUPTCY LAW PROTECTION THE NUMBER OF SHARES HELD BY SHORTSELLERS THOSE WHO SELL BORROWED STOCK HOPING TO MAKE A PROFIT WHEN THE PRICE DROPS NEARLY DOUBLED SINCE MID OCTOBER RISING TO SEVEN POINT ONE PERCENT OF THE AIRLINE'S TWENTY FIVE POINT THREE MILLION SHARES OUTSTANDING AT DECEMBER FIFTEENTH FROM THREE POINT SEVEN PERCENT ON OCTOBER FIFTEENTH BENJAMIN WAISBRAN AN ATTORNEY REPRESENTING AMERICA WEST EQUITY HOLDERS SAYS REPORTS THAT THE COMPANY MAY WIPE OUT EQUITY ARE PREMATURE MR. WAISBRAN A PARTNER IN THE CHICAGO LAW FIRM LORD BISSEL AND BROOK SAYS WE'RE TAKING THE POSITION IN THIS CASE THAT THIS COMPANY HAS VALUE SUFFICIENT TO PROVIDE RECOVERY FOR SHAREHOLDERS THE EXTENT OF THAT RECOVERY WE DO NOT KNOW HE MAINTAINS THAT THE COMPANY BY REISSUING WARNINGS ABOUT THE EQUITY IS PLAYING INTO THE HANDS OF SHORTSELLERS SPECULATING ON THE STOCK AMERICA WEST CURRENTLY IS WEIGHING A TWO HUNDRED FIFTY MILLION DOLLAR BID FOR EIGHTY PERCENT OF THE COMPANY FROM NEW YORK INVESTOR MICHAEL STEINHARDT THE COMPANY SAYS IT HAS SIGNED NONDISCLOSURE AGREEMENTS WITH FIVE OTHER COMPANIES AND THE DEADLINE FOR BIDS IS FEBRUARY TENTH IN THE MEANTIME AMERICA WEST HASN'T CHANGED ITS POSITION ON THE STOCK WE'VE BEEN TELLING PEOPLE IT'S RISKY TO HOLD THE STOCK A SPOKESMAN SAID MEN'S WEARHOUSE SAID DECEMBER SALES INCREASED FORTY TWO PERCENT TO FORTY POINT FIVE MILLION DOLLARS FROM TWENTY EIGHT POINT FIVE MILLION DOLLARS A YEAR EARLIER THE MEN'S RETAILER SAID SALES AT STORES OPEN AT LEAST A YEAR GREW EIGHTEEN PERCENT IN AN UNUSUALLY TOUGH INJUNCTION A FEDERAL JUDGE ORDERED THAT A SOUTH KOREAN COMPANY BE BANNED FROM MAKING HIGH GRADE INDUSTRIAL DIAMONDS BECAUSE THE TECHNOLOGY WAS STOLEN FROM GENERAL ELECTRIC COMPANY IN BOSTON U. S. DISTRICT COURT JUDGE NATHANIEL GORTON RULED THAT ILJIN CORPORATION OF SEOUL IS FORBIDDEN TO PRODUCE THE INDUSTRIAL DIAMONDS FOR A PERIOD OF SEVEN YEARS IN MOST CASES WHERE TECHNOLOGY IS STOLEN U. S. JUDGES ORDER ONLY THAT THE OFFENDER NOT USE THE TECHNOLOGY ONLY RARELY DO THEY IMPOSE A PRODUCTION BAN JUDGE GORTON ALSO ORDERED THAT ILJIN EITHER DESTROY OR RETURN TO GENERAL ELECTRIC THE TOOLING BASED ON G. E.'S TRADE SECRETS IN SEOUL ILJIN HAS TWENTY HUGE PRESSES MAKING INDUSTRIAL DIAMONDS AND THE ORDER WOULD MEAN THAT THE COMPANY WOULD HAVE TO REMOVE CRITICAL TOOLING FROM THOSE PRESSES THE RULING WOULD RESHAPE THE WORLD'S INDUSTRIAL DIAMOND INDUSTRY IN ADDITION TO ILJIN AND G. E. THERE ARE ONLY THREE OTHER MAJOR MAKERS OF HIGH GRADE SYNTHETIC DIAMONDS INCLUDING A GERMAN COMPANY A JAPANESE COMPANY AND THE BIGGEST PRODUCER A UNIT OF DE BEERS CONSOLIDATED MINES LIMITED REMOVING ILJIN WOULD ELIMINATE ONE OF THE FIVE MAJOR PRODUCERS OF THE DIAMONDS WHICH ARE USED IN INDUSTRY TO CUT VERY HARD MATERIALS THE SIZE OF THE WORLD WIDE INDUSTRIAL DIAMOND MARKET ISN'T KNOWN BECAUSE THE COMPANIES DON'T BREAK OUT THEIR SALES FIGURES IT IS HOWEVER CONSIDERED HIGHLY PROFITABLE WITH G. E. MAKING A SEVENTY MILLION DOLLAR PROFIT IN NINETEEN EIGHTY NINE ACCORDING TO A COURT DOCUMENT IN A DIFFERENT CASE ANOTHER QUESTION IS WHETHER THE KOREAN COMPANY WILL OBEY THE U. S. COURT ORDER ILJIN HAS SOME ASSETS IN THIS COUNTRY WHICH COULD BE FROZEN IF IT DISOBEYS BUT IT ISN'T KNOWN HOW SUBSTANTIAL THE ASSETS ARE ILJIN'S ATTORNEY MICHAEL KEATING OF FOLEY HOAG AND ELIOT IN BOSTON SAID THAT THE COMPANY WOULD BE APPEALING NOT ONLY THE INJUNCTION BUT ALSO THE EARLIER JURY VERDICT THAT ILJIN HAD MISAPPROPRIATED G. E.'S SECRETS MR. KEATING SAID THAT THE INJUNCTION IS MORE BROAD THAN NECESSARY TO PROTECT G. E.'S INTERESTS ASKED WHETHER HIS CLIENT WOULD OBEY IT MR. KEATING SAID QUOTE THEY HAVE PARTICIPATED IN THE JUDICIAL PROCESS PLAYING BY U. S. RULES AND I FULLY EXPECT THAT THEY WILL CONTINUE TO DO SO QUOTE IN NEW YORK G. E. ATTORNEY SALEM KATSH OF WEIL GOTSHAL AND MANGES REPLIED THAT THE JUDGE ENTERED THE ONLY KIND OF RELIEF THAT WOULD BE EFFECTIVE THE ILJIN CASE STEMS FROM THE DEPARTURE OF A SCIENTIST CHIEN MIN SUNG FROM G. E.'S INDUSTRIAL DIAMOND UNIT IN NINETEEN EIGHTY FOUR WHEN MR. SUNG TOOK ALONG ARMFULS OF G. E. CONFIDENTIAL DOCUMENTS IN NINETEEN EIGHTY EIGHT MR. SUNG AGREED TO SELL ILJIN TECHNOLOGY ON MAKING INDUSTRIAL DIAMONDS MR. SUNG WAS SUBSEQUENTLY INDICTED AND CONVICTED OF TRANSPORTING STOLEN G. E. DOCUMENTS IN FEDERAL COURT IN BOSTON G. E. FILED ITS CIVIL SUIT AGAINST ILJIN CLAIMING THAT THE KOREAN COMPANY HAD KNOWINGLY PURCHASED STOLEN TECHNOLOGY IN HIS RULING JUDGE GORTON SAID THAT THE DIMENSIONS AND MATERIAL SPECIFICATIONS OF THE ILJIN EQUIPMENT ARE SUBSTANTIALLY SIMILAR AND IN SOME RESPECTS IDENTICAL TO G. E.'S EQUIPMENT JUDGE GORTON ADDED THAT HE WAS IMPOSING THE UNUSUAL PRODUCTION BAN BECAUSE THE TRADE SECRETS ARE INEXTRICABLY CONNECTED TO MANUFACTURING THE HIGH GRADE DIAMONDS IT TOOK G. E. AND OTHER PRODUCERS TWENTY YEARS TO DEVELOP THE TECHNOLOGY WHILE IT TOOK ILJIN ONLY TWO THE JUDGE NOTED ILJIN THE JUDGE SAID MADE A CALCULATED DECISION TO CIRCUMVENT THE EXPENSIVE AND DIFFICULT PROCESS OF DEVELOPING THEIR OWN HIGH GRADE DIAMOND TECHNOLOGY BY PURCHASING STOLEN G. E. TRADE SECRETS THE JUDGE MADE ONE EXCEPTION IN HIS ORDER ALLOWING ILJIN TO PRODUCE THE DIAMONDS IF IT LICENSES THE TECHNOLOGY FROM ANOTHER COMPANY BUT ONE INDUSTRY EXPERT SAID LICENSING COSTS MAY BE SO HIGH AS TO MAKE THIS OPTION IMPRACTICAL WITH THE ECONOMY GROWING AND STATE COFFERS FILLING WE CAN EXPECT A PUSH FOR PUBLIC EMPLOYMENT GROWTH BUT THE FACT IS IN MOST JURISDICTIONS THE GOVERNMENT PAYROLL GROWTH NEVER STOPPED FOR THE RECESSION THIS CAN BE SEEN BY COMPARING STATE AND LOCAL EMPLOYMENT FIGURES FOR JUNE NINETEEN NINETY TO JUNE NINETEEN NINETY THREE FROM THE CENTER FOR THE STUDY OF THE STATES WITH CENSUS DATA FROM APRIL NINETEEN NINETY AND JULY NINETEEN NINETY THREE THIS ALLOWS FOR POPULATION CHANGES WHICH OUGHT TO BE THE PRIMARY BASIS FOR ADJUSTMENTS IN THE SIZE OF THE PUBLIC SECTOR WHAT YOU SEE ARE SEVERAL CASES OF UNJUSTIFIED GOVERNMENT GROWTH MANY OF THEM IN THE SOUTH THE MOST FLAGRANT WAS KENTUCKY PUBLIC PAYROLL UP TWELVE POINT ONE PERCENT POPULATION UP TWO POINT EIGHT PERCENT THEN THERE'S ALABAMA NINE POINT SIX PERCENT VERSUS THREE POINT SIX PERCENT AND MISSISSIPPI EIGHT POINT TWO PERCENT VERSUS TWO POINT SEVEN PERCENT LESSER BUT SIZABLE DISPARITIES WERE SEEN IN ARKANSAS LOUISIANA SOUTH CAROLINA AND WEST VIRGINIA THE CONTRARY EXAMPLE WAS GEORGIA WHICH RESTRAINED TAX PAID EMPLOYEE GROWTH TO ONE PERCENT WHILE THE STATE GREW BY SIX POINT EIGHT PERCENT ELSEWHERE SOME BIG STATES WITH BUDGET TROUBLES MANAGED TO TIGHTEN THEIR BELTS MASSACHUSETTS WITH A STABLE POPULATION CUT ITS PUBLIC PAYROLL SIX POINT FOUR PERCENT NEW YORK LOPPED OFF TWO POINT EIGHT PERCENT WHILE THE RESIDENT COUNT FOR THE STATE GREW A MEAGER ONE POINT TWO PERCENT MARYLAND SLIGHTLY CUT ITS STATE AND LOCAL WORK FORCE EVEN AS IT ADDED THREE POINT EIGHT PERCENT TO THE POPULATION AND CALIFORNIA'S POPULATION GREW FOUR POINT NINE PERCENT BUT ADDED ONLY ONE POINT NINE PERCENT TO THE PUBLIC PAYROLL NEW ENGLAND WAS GENERALLY DISCIPLINED EXCEPT FOR MAINE WHERE THE PUBLIC WORK FORCE GREW AT THREE TIMES THE CENSUS COUNT IN THE MIDWEST NEBRASKA'S OFFICIAL RANKS EXPANDED MORE THAN TWICE AS FAST AS THE NUMBER OF RESIDENTS PUBLIC PAYROLLS IN MINNESOTA SOUTH DAKOTA MISSOURI AND IOWA ALSO OUTPACED THEIR POPULATIONS FLORIDA KEPT ITS RATIO NEARLY EVEN BUT THE RECORD WASN'T AS GOOD IN TEXAS AN ELEVEN POINT FOUR PERCENT INCREASE IN THE GOVERNMENT SECTOR VERSUS A SIX POINT ONE PERCENT POPULATION GAIN NEXT DOOR OKLAHOMA HAD THE SAME PROBLEM UP SEVEN POINT FOUR PERCENT IN PAYROLL AND JUST TWO POINT SEVEN PERCENT IN PEOPLE OTHER GROWTH STATES THAT RAN AHEAD OF THEMSELVES IN PUBLIC HIRING WERE UTAH TWELVE POINT TWO PERCENT VERSUS EIGHT PERCENT POPULATION WASHINGTON ELEVEN POINT THREE PERCENT VERSUS EIGHT PERCENT NEVADA TWENTY THREE POINT EIGHT PERCENT VERSUS FIFTEEN POINT SIX PERCENT AND HAWAII TWELVE POINT OH PERCENT VERSUS FIVE POINT EIGHT PERCENT WHEN THE POLITICIANS COME CALLING FOR MORE MONEY THE FIRST THING THAT VOTERS AND THEIR WATCHDOGS IN THE PRESS SHOULD DO IS TAKE A LOOK AT THIS KIND OF COMPARISON AND ASK THE OBVIOUS QUESTIONS T. J. X. COMPANIES SAID SALES FOR THE FIVE WEEKS ENDED SATURDAY WERE FIVE HUNDRED EIGHT MILLION DOLLARS UP THIRTEEN PERCENT FROM A YEAR AGO SALES AT STORES OPEN AT LEAST A YEAR ROSE THREE PERCENT FOR THE FORTY EIGHT WEEKS ENDED SATURDAY SALES REACHED THREE POINT FOUR FIVE BILLION DOLLARS UP THIRTEEN PERCENT FROM THREE POINT OH SIX BILLION DOLLARS MANY INDEPENDENT OIL PRODUCERS IN CALIFORNIA ARE CLOSING MARGINALLY PRODUCTIVE WELLS AND SOME SMALLER OUTFITS SAY THEY MAY FACE BANKRUPTCY WITHIN MONTHS IF OIL PRICES STAY WHERE THEY ARE CALIFORNIA PRODUCERS QUOTE HAVE LAID OFF PEOPLE BANKS ARE REVIEWING THEIR LOANS AND THEY HAVE SIMPLY SHUT DOWN THE PUMPS QUOTE IN SOME CASES SAID JUDY LEON A SPOKESWOMAN FOR THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA IN WASHINGTON D. C. THE SLIDE IN CRUDE OIL PRICES SINCE OCTOBER HAS SHAKEN OIL DRIVEN ECONOMIES WORLD WIDE CURRENTLY CALIFORNIA HEAVY CRUDES SELL FOR ABOUT EIGHT DOLLARS A BARREL ROUGHLY SIX DOLLARS BELOW THE U. S. BENCHMARK WEST TEXAS INTERMEDIATE PRODUCERS SAY THAT NOT ONLY CALIFORNIA'S ECONOMIC HEALTH BUT LONGTERM PRODUCTION CAPACITY ITSELF COULD DETERIORATE RAPIDLY IF CURRENT PRICES CONTINUE THE INDEPENDENTS AT HIGHEST RISK CARRY HIGH DEBT AND DON'T OWN THE LAND ON WHICH THEY MINE INSTEAD THEY MUST SHELL OUT STEEP ROYALTY FEES TO LANDOWNERS FOR THE RIGHT TO PUMP THE OIL IN ADDITION MOST OF THE CRUDE PRODUCED IN CALIFORNIA IS HEAVY CRUDE THE DAY TO DAY COST OF EXTRACTING HEAVY CRUDES EXCEEDS THAT OF THE LIGHTER GRADES FOUND IN MOST OTHER REGIONS OF THE U. S. UNLIKE LIGHTER GRADE FREE FLOWING CRUDES CALIFORNIA HEAVY CRUDES MUST FIRST BE SOFTENED BY HEAT AND THEN FORCED OUT OF THE GROUND BY STEAM AFTER THREE MONTHS OF CELLAR PRICES MOST OF THE STATE'S ROUGHLY FIVE HUNDRED THIRTY FIVE ACTIVE INDEPENDENT PRODUCERS REALLY ONLY HAVE SIXTY DAYS OF CASH RESERVES LEFT SAID VIRGINIA LAZENBY SPOKESWOMAN FOR THE NATIONAL STRIPPER WELLS ASSOCIATION A GROUP REPRESENTING THE INTERESTS OF THE SMALLEST OIL PRODUCERS ONCE THEY'VE CLOSED THESE WELLS THEY'VE LOST THEIR ABILITY TO REVIVE THEM AND COSTS JUST SNOWBALL AL OVERSTREET SIXTY TWO YEAR OLD OWNER AND FOUNDER OF CAPITAL PRODUCTION COMPANY BAKERSFIELD CALIFORNIA SAID HE HAS CLOSED FIVE OF EIGHT WELLS DURING THE PAST SIX MONTHS HIS COMPANY FACES BANKRUPTCY IN THE NEXT FEW MONTHS IF PRICES REMAIN FLAT HE ADDED A SURVEY OF INDEPENDENTS CONDUCTED BY THE CONSERVATION COMMITTEE OF CALIFORNIA OIL AND GAS PRODUCERS A GROUP AIMED AT PRESERVING THE STATE'S OIL PRODUCTION CAPACITY FOUND THAT COMPANIES WERE LOSING MONEY ON ALMOST ONE THIRD OF BARRELS PUMPED IN CALIFORNIA AT CURRENT PRICES ON A DAILY CASH FLOW BASIS IF START UP COSTS EQUIPMENT LIABILITY AND DEBT LOAD ARE FACTORED IN ALMOST TWO THIRDS OF THE STATE'S BARRELS ARE UNPROFITABLE THE STUDY FOUND STOCKDALE OIL AND GAS INCORPORATED A FOURTEEN PERSON OPERATION HAS CLOSED HALF OF ITS TWO HUNDRED WELLS DURING THE PAST SIX MONTHS ACCORDING TO PHILIP RYALL STOCKDALE'S PRESIDENT THE CLOSURES HAVE CUT OUTPUT ALMOST ONE THIRD SINCE AUGUST TO SEVEN HUNDRED BARRELS A DAY FROM ONE THOUSAND AT THIS POINT A COMPANY OUR SIZE MAY NOT STAY IN BUSINESS FOR LONG IN CALIFORNIA SAID MR. RYALL ADDING BELIEVE ME WE'RE NERVOUS MR. RYALL SAID THE COMPANY CAN PROBABLY SURVIVE LONGER THAN SOME OTHERS OF SIMILAR SIZE BECAUSE STOCKDALE HAS OTHER HOLDINGS ACROSS THE U. S. AND IN OTHER COUNTRIES WHERE LOCAL CRUDES FETCH HIGHER PRICES ANALYSTS AGREE THAT THE FACE OF CALIFORNIA'S OIL INDUSTRY IS CHANGING UNDER THE ONSLAUGHT OF PRICE WEAKNESS BUT SOME SEE THE CURRENT TREND AS AN EVOLUTION TOWARD A MORE STREAMLINED RESILIENT INDUSTRY WITH STRONGER COMPANIES GOBBLING UP WEAKER ONES THE LOW PRICE ENVIRONMENT IS GOING TO PRODUCE SOME WINNERS AS WELL AS SOME LOSERS SAID SANDY KIRKPATRICK PRESIDENT OF KIRKPATRICK ENERGY ASSOCIATES INCORPORATED A DENVER INVESTMENT FIRM THAT ANALYZES WEST COAST OIL COMPANIES MUCH DEBATED FEDERAL EFFORTS TO HELP SMALL ENERGY COMPANIES ARE ALL FOCUSED ON THE LONG TERM HOWEVER THE STATE OF CALIFORNIA RESPONDING TO THE PLEAS OF PRODUCERS AND TO ITS OWN CONCERN TO PROTECT ITS EMPLOYMENT BASE IS LOOKING FOR WAYS TO EASE THE REGULATORY BURDEN FOR INSTANCE THE STATE HAS THE STIFFEST ENVIRONMENTAL AND AIR QUALITY REGULATIONS IN THE NATION AT THE END OF THIS MONTH THE STATE WILL RELEASE A REPORT EXAMINING THE COST OF ENVIRONMENTAL REGULATIONS TO CALIFORNIA'S OIL INDUSTRY AND WHAT MEASURES COULD BE TAKEN TO REDUCE COSTS IN THE FACE OF CURRENT PRICE DECLINES BUT FOR THE SMALLEST COMPANIES GOVERNMENT HELP MAY BE A CASE OF TOO LITTLE TOO LATE I'VE WORKED SINCE I WAS NINE YEARS OLD IN THIS BUSINESS FROM THE ALASKA NORTH SLOPE TO THE MIDDLE EAST SAID CAPITAL PRODUCTION'S MR. OVERSTREET FROM HIS NEW HEADQUARTERS INSIDE HIS HOME QUOTE NOW I'M LOOKING AT GOING BANKRUPT AT THE TWILIGHT OF MY LIFE QUOTE T. TWO MEDICAL INCORPORATED DISCLOSED THAT THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING EVENTS SURROUNDING THE COMPANY'S RESTATEMENT LAST SUMMER OF TWO QUARTERLY EARNINGS REPORTS THE COMPANY A PROVIDER OF INTRAVENOUS DRUG THERAPY IN THE HOME AND OTHER MEDICAL SERVICES SAID IT IS RESPONDING TO THE S. E. C.'S REQUEST A SPOKESMAN DECLINED TO ELABORATE T. TWO MEDICAL ALSO DISCLOSED IN THE FILING THAT IT NO LONGER WOULD PURSUE THE CONTROVERSIAL PHYSICIAN OWNERSHIP ARRANGEMENTS THAT HAVE DRIVEN ITS SUCCESS IN THE PAST THE S. E. C. INQUIRY REPRESENTS THE LATEST REVERSAL IN T. TWO MEDICAL'S FORTUNES ONCE A DARLING OF WALL STREET THE COMPANY IN NINETEEN NINETY TWO LEARNED THAT IT WAS ONE OF SEVERAL FIRMS UNDER INVESTIGATION BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR POSSIBLE MEDICARE FRAUD LAST SUMMER ACCOUNTING PROBLEMS AT THE COMPANY SPARKED A SLEW OF STILL UNRESOLVED SHAREHOLDER LAWSUITS IN AUGUST T. TWO MEDICAL PRONOUNCED T. SQUARED RESTATED ITS EARNINGS SHARPLY DOWNWARD FOR THE FIRST AND SECOND QUARTERS OF ITS NINETEEN NINETY THREE FISCAL YEAR AFTER THE COMPANY SAID IT DISCOVERED QUOTE ACCOUNTING IRREGULARITIES AND ERRORS QUOTE THE ORIGINAL DISCLOSURE OF THE ACCOUNTING PROBLEMS WAS ACCOMPANIED BY THE RESIGNATION OF T. TWO MEDICAL'S CHIEF EXECUTIVE OFFICER JOSEPH C. ALLEGRA IN ADDITION THE COMPANY'S CHIEF FINANCIAL OFFICER DAVID HERSH TOOK ADMINISTRATIVE LEAVE WITH PAY AT THE TIME NEITHER THE COMPANY NOR THE EXECUTIVES WOULD SAY WHETHER THEIR DEPARTURES WERE LINKED TO THE ACCOUNTING DISCLOSURES THE EARNINGS RESTATEMENTS STEMMED LARGELY FROM INADEQUATE PROVISIONS FOR DOUBTFUL ACCOUNTS THE COMPANY SAID AT THE TIME DOUBTFUL ACCOUNTS ARE BILLINGS THAT NEITHER INSURERS NOR PATIENTS ARE LIKELY TO COVER MEANWHILE MOUNTING CRITICISM OF DOCTOR OWNERSHIP ARRANGEMENTS BY THE PUBLIC AND IN WASHINGTON APPEARS TO HAVE FORCED T. TWO MEDICAL'S HAND IN RESTRUCTURING ITS CORPORATE DEALINGS THE COMPANY HISTORICALLY HAS GROWN BY MANAGING DOCTOR OWNED HOME HEALTH FIRMS AND LATER BUYING OUT THE DOCTORS' INTERESTS WITH COMPANY STOCK THROUGHOUT THESE RELATIONSHIPS T. TWO MEDICAL HAS BENEFITED FROM THE CONSTANT FLOW OF PATIENT REFERRALS BY THOSE DOCTORS INCREASINGLY THE PROPRIETY OF SUCH ARRANGEMENTS HAS BEEN CALLED INTO QUESTION BY MEDICAL ETHICISTS AND LEGISLATORS IN THE S. E. C. FILING THE COMPANY SAID IT WOULD EITHER ACQUIRE OR REVISE THE MANAGEMENT AGREEMENTS WITH EXISTING FIRMS THAT ARE MANAGED BUT NOT YET OWNED BY T. TWO MEDICAL FURTHER THE COMPANY SAID IT IS BOLSTERING ITS SALES AND MARKETING STAFFS IN AN EFFORT TO ESTABLISH ACCOUNTS WITH HOSPITALS AND MANAGED CARE ORGANIZATIONS T. TWO MEDICAL'S STRATEGIC SHIFT IS BEING APPLAUDED BY INDUSTRY ANALYSTS THOUGH THEY SUGGEST THAT THE COMPANY SHOULD HAVE MADE THE DECISION EARLIER THIS JUST MOVES THEM CLOSER TO WHERE THE INDUSTRY IS ALREADY SAID LORI PRICE SENIOR ANALYST WITH OPPENHEIMER AND COMPANY MS. PRICE AND OTHERS ALSO WARN THAT THE COST OF CONVERTING TO A MORE TRADITIONAL SALES STRUCTURE WILL BE HIGH SO FAR ACCORDING TO THE FILING T. TWO MEDICAL HAS TAKEN SEVERAL MEASURES TO BOLSTER ITS SALES AND MARKETING CAPABILITIES THE COMPANY HAS RECRUITED A NUMBER OF HEALTH CARE EXECUTIVES REDEPLOYED MANY SENIOR EXECUTIVES AND BUILT A SMALL TRADITIONAL SALES STAFF THE DOCUMENT STATES IT'S NOT YET CLEAR HOW EFFECTIVE THESE MOVES WILL BE GIVEN THE TREMENDOUS COMPETITION IN HOME HEALTH CARE TODAY ACCORDING TO MICHAEL BOROCH A HEALTH CARE INDUSTRY CONSULTANT WITH LOUDEN AND COMPANY IN NASHVILLE TENNESSEE THEY'RE REALLY GOING TO BE CHALLENGED TO GO OUT AND SELL AGAINST EVERYBODY ELSE HE SAID PRICING CONTINUES TO COME DOWN AND THE MARKET ISN'T GROWING NEARLY AS IT HAD IN THE PAST T. R. W. INCORPORATED WILL ANNOUNCE TODAY A MULTIMILLION DOLLAR JOINT VENTURE WITH GRUPO C. I. S. AN INVESTOR GROUP TO ESTABLISH A CONSUMER CREDIT REPORTING AGENCY IN MEXICO THE NEW COMPANY CALLED COMCRED IS EXPECTED TO START OPERATIONS IN GUADALAJARA IN TWELVE TO EIGHTEEN MONTHS WITH FORTY EMPLOYEES D. V. SKILLING GENERAL MANAGER OF T. R. W.'S INFORMATION SYSTEMS AND SERVICES DECLINED TO DISCLOSE THE EXACT VALUE OF THE AGREEMENT SAYING ONLY THAT THE TRANSACTION WAS QUOTE IN THE MULTI TENS OF MILLIONS OF DOLLARS QUOTE ACCESSIBLE COMPUTERIZED INFORMATION ON THE CREDIT HISTORY OF INDIVIDUALS HARDLY EXISTS IN MEXICO MANY BANKS STILL KEEP CREDIT RECORDS ON PAPER FURTHERMORE MEXICAN CONSUMERS DON'T HAVE LENGTHY CREDIT HISTORIES BECAUSE THEY PAID CASH FOR MOST OF THEIR PURCHASES DURING THE NINETEEN EIGHTIES AND UNTIL AUGUST NINETEEN NINETY THREE IT WAS ILLEGAL TO SHARE CREDIT INFORMATION OUTSIDE THE BANKING SYSTEM THIS IS A BRAND NEW BUSINESS PABLO GERBER S. A PRINCIPAL IN GUADALAJARA BASED GRUPO C. I. S. SAID IN AN INTERVIEW IT IS DIFFICULT TO KNOW WHAT KIND OF INFORMATION IS OUT THERE BANKS HAVE AN URGENT NEED FOR CREDIT BUREAUS MEXICAN BANKS ISSUED THOUSANDS OF CREDIT CARDS IN THE PAST THREE YEARS BUT WERE LATER STUNG BY DEFAULTS MANY MEXICAN CONSUMERS INEXPERIENCED USERS OF CREDIT SIMPLY COULDN'T AFFORD THE HIGH FINANCING COSTS CREDIT CARDS WERE ONE OF THE KEY PROBLEM LOAN AREAS FOR BANKS IN NINETEEN NINETY TWO AND IN NINETEEN NINETY THREE SAID LAURA Z. BERDEJA BANK ANALYST FOR BARING RESEARCH HERE AT LEAST TEN PERCENT OF ALL CREDIT CARDS ISSUED WERE IN DEFAULT AT ONE POINT SHE SAID IN SOME INDIVIDUAL BANKS DEFAULT RATES WERE EVEN HIGHER THAN THAT BANKS HAVE SINCE WRITTEN DOWN MANY OF THESE LOANS SHARING CREDIT HISTORIES WITH A THIRD PARTY REPRESENTS A SIGNIFICANT CULTURAL CHANGE FOR MEXICAN BANKS WHICH TRADITIONALLY VIEWED SUCH DATA AS PROPRIETARY T. R. W. SAYS IT NOW HAS INFORMAL COMMITMENTS FROM SEVERAL BANKS TO SHARE CREDIT INFORMATION T. R. W. ALREADY FACES COMPETITION HERE HOWEVER LAST MONTH TRANS UNION CORPORATION AND THE ASSOCIATION OF MEXICAN BANKS SIGNED A LETTER OF INTENT TO FORM A JOINT VENTURE TO PROVIDE ELECTRONIC CREDIT INFORMATION SERVICES BANKS AREN'T THE ONLY ISSUERS OF CREDIT CARDS HERE SEVERAL RETAIL CHAINS EXTEND CREDIT TO SHOPPERS AND A NUMBER OF NONBANK CREDIT CARD COMPANIES OPERATE IN MEXICO CURRENTLY BANKS CHARGE INTEREST RATES OF THIRTY PERCENT TO THIRTY FIVE PERCENT ON CREDIT CARDS HIGH RATES ARE ALSO CHARGED ON AUTO AND HOUSING LOANS BECAUSE MANY BANKS DON'T DISCRIMINATE BETWEEN GOOD CREDIT RISKS AND BAD ONES CREDIT BUREAUS COULD ACTUALLY HELP MEXICAN CONSUMERS BY DISTINGUISHING THOSE INDIVIDUALS WHO ARE GOOD CREDIT RISKS QUOTE IN THE PAST THERE HAS BEEN NO CONCERN FOR BUILDING A CREDIT HISTORY QUOTE AMONG CONSUMERS IN MEXICO MS. BERDEJA SAID WITH THESE CREDIT BUREAUS YOU WILL BE ABLE TO DISTINGUISH YOURSELF AND MAYBE GET A LOWER INTEREST RATE THE BEER THAT PUT AUSTRALIA ON THE WORLD BREWING MAP IS TRYING TO RECAPTURE ITS HOME MARKET BACK IN THE NINETEEN EIGHTIES THE GO GO ENTREPRENEURS WHO RAN THE COMPANY NOW KNOWN AS FOSTER'S BREWING GROUP LIMITED SPENT MOST OF THAT DECADE BENT ON QUOTE FOSTERIZING QUOTE THE WORLD WITH THEIR LAGER BEER FOSTER'S NOW THOSE MEN ARE GONE AND THE COMPANY IS CHANGING ITS ACT ENTER LES HIDDINS OTHERWISE KNOWN AS THE STAR OF BUSH TUCKER MAN AN AUSTRALIAN TELEVISION SERIES THAT SHOWS SURVIVAL TECHNIQUES IN THE WILD IN A TELEVISION CAMPAIGN LAUNCHED LAST MONTH MR. HIDDINS FEATURES AGAINST A STRIKING OUTBACK SETTING WITH A CAN OF FOSTER'S IN HAND THE COLOR OF THE CAN REMAINS ITS TRADEMARK BLUE THOUGH A SHADE OR TWO DARKER AND THE REVAMPED THEME IS IT DOESN'T GET ANY BETTER THAN THIS THE AIM IS TO CELEBRATE THE BRAND'S LOCAL HERITAGE FOSTER'S SAYS IN ITS PROMOTIONAL MATERIAL THE COMPANY NEGLECTS TO MENTION THAT FOSTER'S WAS FOUNDED IN MELBOURNE ONE HUNDRED SEVEN YEARS AGO BY TWO BROTHERS NAMED FOSTER WHO HAILED FROM NEW YORK THE OLD FOSTER'S WAS A PRODUCT OF THE EIGHTIES IN A MARKETING SENSE AND WENT THE WAY OF THE EIGHTIES BECAUSE IT HAD A LOT OF ASSOCIATION WITH BUSINESS IN GENERAL AND HIGHFLYING SAYS ROBIN HUXLEY MARKETING DIRECTOR AT CARLTON AND UNITED BREWERIES LIMITED A FOSTER'S UNIT THAT IMAGE IN PART HELPED DRIVE THE LAGER'S MARKET SHARE IN AUSTRALIA DOWN TO BETWEEN SEVEN PERCENT AND TEN PERCENT FROM AROUND SIXTEEN PERCENT IN THE MID TO LATE NINETEEN EIGHTIES HE SAYS THE FOSTER'S STABLE OF BRANDS HOWEVER CONTROLS AN ESTIMATED FIFTY THREE PERCENT OF THE COUNTRY'S BEER MARKET WHICH TOTALS ABOUT FIVE POINT FIVE BILLION DOLLARS AUSTRALIAN DOLLARS THREE POINT SEVEN EIGHT BILLION U. S. DOLLARS A YEAR IMPORTED BEERS ACCOUNT FOR ONLY ABOUT ONE PERCENT OF TOTAL BEER SALES IN AUSTRALIA THE RELAUNCHING OF THE FOSTER'S BRAND IS PART OF A TREND IN AUSTRALIA OVER THE PAST TWO YEARS NEW BEERS OR REMAKES HAVE HIT THE SHELVES AT THE RATE OF ABOUT ONE A MONTH THOUGH SOME ARE DIRECTED ONLY AT SMALL REGIONAL MARKETS IT'S THE CLASSIC COMBINATION OF A FALLING MARKET AND TWO MAJOR COMPETITORS SAYS MR. HUXLEY WHO NOTES THAT EACH POINT OF MARKET SHARE IN AUSTRALIA IS WORTH FIFTY FIVE MILLION AUSTRALIAN DOLLARS THE CURRENT BLITZ OF BRANDS ISN'T PECULIAR TO AUSTRALIA BREWERS IN OTHER MATURE MARKETS INCLUDING THE U. S. AND CANADA PURSUE A SIMILAR STRATEGY HE AND OTHERS SAY IN AUSTRALIA FOSTER'S AND ITS MAJOR COMPETITOR LION NATHAN LIMITED WHOSE TOP BRANDS INCLUDE TOOHEYS AND SWAN QUOTE ARE CONSTANTLY TRYING TO GET THE ATTENTION OF THE CONSUMER QUOTE SAYS JUSTIN ARTER WHO TRACKS THE BREWING INDUSTRY FOR STOCKBROKERAGE FIRM J. B. WERE AND SON HE THINKS IT IS A TREND THAT IS HERE TO STAY THE RISK MR. ARTER ADDS IS THAT IT'S CANNIBALIZING A SHRINKING MARKET PER CAPITA BEER CONSUMPTION HAS PLUNGED TWENTY ONE PERCENT TO NINETY FIVE POINT SIX LITERS IN THE LATEST YEAR FROM ONE HUNDRED TWENTY ONE POINT SIX LITERS A DECADE AGO GOVERNMENT FIGURES SHOW MEANWHILE OVER THE PAST FIVE YEARS SO CALLED LIGHT BEERS WITH LOWER ALCOHOL CONTENT HAVE GROWN TO ABOUT TWENTY FIVE PERCENT OF CONSUMPTION FROM JUST TEN PERCENT REFLECTING AMONG OTHER FACTORS TOUGHER DRUNK DRIVING REGULATIONS IN AUSTRALIA THE BRIGHT SPOT LATELY ON THE DOMESTIC BEER FRONT INDUSTRY ANALYSTS SAY IS THE INTRODUCTION OF SO CALLED ICE BEERS AND COLD FILTERED PRODUCTS BOTH OF WHICH UNDERGO SPECIAL LOW TEMPERATURE BREWING PROCESSES FOR INSTANCE DESPITE ITS RELATIVELY HIGH ALCOHOL CONTENT FOSTER'S MAINTAINS THAT ITS NEW CARLTON COLD FILTERED BITTER LAUNCHED LAST JUNE ALREADY HAS CAPTURED FOUR POINT FIVE PERCENT OF THE NATIONAL MARKET FOR PACKAGED BEER SOME ANALYSTS ATTRIBUTE THE BREW'S SUCCESS TO A CLEAR BOTTLE THAT IS NOVEL FOR AUSTRALIA AND A TASTE THAT IS SWEETER THAN MOST BITTERS AND APPEALS TO THE EIGHTEEN TO TWENTY FIVE YEAR OLD SET AS JAPAN HUNKERS DOWN IN THE ECONOMIC DOLDRUMS FATHERS ARE MOVING INTO THE SPOTLIGHT ON THE SCREEN FATHERS ALWAYS HAVE BEEN REPRESENTED IN TELEVISION ADS BUT THEY TENDED TO PLAY A MINOR ROLE JUST AS JAPANESE FATHERS IN REAL LIFE BUSY AT WORK AND NEVER AT HOME BUT NOW THAT COMPANIES ARE REDUCING OVERTIME BUSINESSMEN ARE COMING HOME MANY HOURS EARLIER AND MORE COMMERCIALS ARE SHOWING FATHERS AS CENTRAL CHARACTERS COOKING CURRY AND WASHING DISHES NAKANO VINEGAR COMPANY WHICH SELLS DRIED FISH FLAKES FOR RICE RECENTLY AIRED AN AD SHOWING A FATHER MOTHER AND CHILD MAKING RICE BALLS IN A PARK A BIG CHANGE FROM LAST YEAR'S AD OF A POPULAR TEENAGE CELEBRITY PLAYING VOLLEYBALL EVEN ROCK STARS ARE PUSHING A FATHERLY IMAGE FUJI PHOTO FILM COMPANY JAPAN'S BIGGEST FILM MAKER RECENTLY SHOWED A POPULAR HEAVY METAL SINGER HIS FACE PAINTED LIKE THE AMERICAN ROCK BAND KISS AND CLAD IN A BUSINESS SUIT RUNNING AFTER HIS DAUGHTER WITH HER LUNCHBOX AMONG THE TWENTY HIGHEST RATED ADS ARE SEVERAL COMMERCIALS PORTRAYING FATHER FIGURES SAYS TATSUO SEKINE PRESIDENT OF TOKYO KIKAKU COMPANY A MARKETING RESEARCH COMPANY A FEW YEARS AGO HE SAYS THE TOP ADS WERE DOMINATED BY TEENAGE MODELS BUT THE TREND DOESN'T NECESSARILY MEAN JAPANESE MEN SUDDENLY ARE HELPING OUT WITH THE HOUSEWORK RATHER THE ADS ARE POPULAR BECAUSE QUOTE FATHERS ARE A SYMBOL OF ENDURANCE QUOTE SAYS TOKYO KIKAKU'S MR. SEKINE AND AMID THE GLOOM OF THE ECONOMIC RECESSION HE SAYS PEOPLE WANT SOMEONE TO RELY ON IN JAPAN'S COMPETITIVE SOFT DRINK MARKET COCA COLA COMPANY'S AMBITIOUS ATTEMPT TO SELL TAB CLEAR HAS FIZZLED LAST MARCH COKE ENTHUSIASTICALLY LAUNCHED ITS LOW CALORIE CLEAR COLA IN JAPAN FLOODING TELEVISION WITH ADS THAT SAID THE BEVERAGE WAS A COMPLETELY NEW IDEA WITH A TASTE THAT'S NOT WHAT YOU THINK AT FIRST CURIOUS TEENAGERS THE MAIN CONSUMERS OF SOFT DRINKS RUSHED TO SAMPLE THE DRINK WHICH COSTS ONE HUNDRED TEN YEN FOR AN EIGHT OUNCE CAN COKE'S JAPANESE UNIT SAYS IT SOLD FOUR MILLION CASES THE FIRST TWO MONTHS A STRONG PERFORMANCE FOR A NEW BRAND BUT FEW PEOPLE CAME BACK FOR MORE AN OFFICIAL FROM COKE'S CONSUMER INFORMATION DEPARTMENT IN JAPAN SAID THE COMPANY DECIDED TO HALT SALES LAST SUMMER IT'S NOT UNCOMMON FOR NEW DRINKS TO QUICKLY VANISH IN JAPAN'S SOFT DRINK MARKET WHICH POSTS ANNUAL SALES OF FOUR POINT TWO TRILLION YEN AND INCLUDES MORE THAN ONE THOUSAND BRANDS IN FACT MANY COMPANIES TEST PRODUCTS BY ROLLING THEM OUT STRAIGHT TO CONSUMERS RECENT ENTRIES INCLUDE SUCH EXOTIC ITEMS AS YOGURT DRINKS INCLUDING CHUNKS OF FERMENTED COCONUT AND PUMPKIN AU LAIT BUT IT'S RARE FOR A DRINK THAT'S MARKETED SO HEAVILY TO BE WITHDRAWN SO SOON ANALYSTS SAY JAPANESE CONSUMERS WEREN'T READY FOR A DRINK LIKE TAB CLEAR FOR ONE THING ORIGINAL TAB HAD LITTLE BRAND RECOGNITION IN A COUNTRY THAT DOESN'T HAVE AS MUCH OF A TASTE FOR COLA AS AMERICA MOREOVER THE NOVELTY OF A CLEAR COLA DIDN'T EXCITE JAPANESE CONSUMERS WHAT'S MORE DIET DRINKS HAVE JUST STARTED TO GAIN ATTENTION AND MANY CONSUMERS WERE PUZZLED BY TAB CLEAR'S ARTIFICIALLY SWEET AFTERTASTE A POPULAR LOW CALORIE DRINK IS CANNED GREEN TEA WHICH ISN'T SWEET AT ALL PEOPLE WANT DRINKS THAT SOUND HEALTHY SAYS A SPOKESMAN FOR THE JAPAN SOFT DRINKS ASSOCIATION WHICH TRACKS BEVERAGE SALES FOR TAB CLEAR HE SAYS THE SWEETNESS MAY HAVE LINGERED A BIT JAPANESE DRIVERS ARE SPENDING A BUNDLE TO STAY ON THE RIGHT ROAD AT A TIME WHEN CONSUMER ELECTRONICS SALES ARE PLUNGING AMID THE RECESSION COMPANIES ARE CASHING IN BY PUSHING COMPUTERIZED SATELLITE NAVIGATION SYSTEMS THE DEVICES ATTACHED NEXT TO THE DRIVER'S SEAT SHOW A CAR'S EXACT LOCATION AND GUIDE THE DRIVER TO A DESTINATION WITH AN ARROW ON A TINY TELEVISION SCREEN FIVE MONTHS AFTER ENTERING THE MARKET SONY CORPORATION SAYS IT HAS SOLD NEARLY FORTY THOUSAND OF ITS NVX F. TEN MODEL DESPITE ITS HEFTY TWO HUNDRED TEN THOUSAND YEN ONE THOUSAND EIGHT HUNDRED SIXTY ONE DOLLARS PRICE QUOTE IT'S ONE AREA IN THIS GLOOMY MARKET WHERE THERE'S ACTION GOING ON QUOTE SAYS A SONY SPOKESMAN A HANDFUL OF RIVAL PRODUCTS HAS SPURRED A PRICE WAR BOOSTING SALES IN THE YEAR ENDED MARCH THIRTY FIRST CAR NAVIGATION SYSTEMS SALES IN JAPAN MORE THAN QUADRUPLED FROM A YEAR EARLIER TO ONE HUNDRED FIFTY THOUSAND UNITS OBSERVERS ESTIMATE VOLUME TO AT LEAST DOUBLE IN THE NEXT YEAR IT'S A BIT OF A HASSLE TO SCROLL THE DEVICE'S MAPS WITH A REMOTE CONTROL OPERATOR WHILE DRIVING BUT THE NAVIGATOR SOLVES A DILEMMA IN JAPAN'S FREQUENT TRAFFIC JAMS WHETHER TO SHOOT OFF ON SOME BACK ALLEY SHORTCUT THE MACHINE TELLS WHETHER AND HOW THE DRIVER CAN GET BACK ON TRACK THE C. D. ROM SOFTWARE COVERS ONLY JAPANESE ROADS SONY SAYS IT DOESN'T PLAN TO EXPORT THE DEVICE TO THE U. S. WHERE OLDSMOBILE JUST UNVEILED A SELF NAVIGATING CAR THE DEVICES DETERMINE THE DRIVER'S WHEREABOUTS THROUGH MARITIME GLOBAL POSITIONING SYSTEM NETWORK OF SATELLITES USUALLY USED TO NAVIGATE SHIPS IN ADDITION SANYO ELECTRIC COMPANY'S MACHINE RECOGNIZES VOICE SIGNALS AND PIONEER CORPORATION OFFERS SOFTWARE FOR COMPUTER GAMES AND ENGLISH LANGUAGE LESSONS EYEING THE RISE IN INTEREST IN JAPAN FOR NATURE MAGAZINES NIKKEI BUSINESS PUBLICATIONS INCORPORATED A TOKYO BASED PUBLISHER SAYS IT'S STUDYING THE POSSIBILITY OF PUBLISHING A JAPANESE VERSION OF NATIONAL GEOGRAPHIC SOCIETY'S MONTHLY MAGAZINE AS EARLY AS NEXT YEAR HOPING TO GAIN FROM JAPAN'S MINERAL WATER BOOM SUNTORY LIMITED ADVERTISES ITS DYNAMIC BRAND BEER NOT FOR ITS TASTE BUT FOR USING NATURAL WATER THAT'S PUMPED FROM A WELL INSIDE ITS BREWING PLANT SUNTORY WHICH LAUNCHED THE BREW IN MARCH AIMS TO SELL SIXTY THREE THOUSAND THREE HUNDRED KILOLITERS IN THE FIRST YEAR GOVERNMENT OWNED PETRON CORPORATION WHICH PLANS A PUBLIC OFFERING OF TWENTY PERCENT OF ITS EQUITY IN THE NEXT FEW MONTHS ANNOUNCED ITS NET INCOME SURGED BY EIGHTY FOUR PERCENT TO AROUND TWO POINT SEVEN BILLION PESOS ONE MILLION DOLLARS LAST YEAR PETRON PRESIDENT MONICO JACOB ATTRIBUTED THE SHARP RISE ON AN INCREASE IN REVENUE TO BETWEEN FORTY FOUR BILLION PESOS TO FORTY FIVE BILLION PESOS FROM FORTY POINT SEVEN BILLION IN NINETEEN NINETY TWO TO QUOTE INCREASED VOLUMES INCREASED MARGINS AND BETTER EFFICIENCY QUOTE HE COULDN'T GIVE FURTHER DETAILS PETRON THE PHILIPPINES' LARGEST OIL REFINING AND MARKETING COMPANY ALSO INCREASED ITS MARKET SHARE TO FORTY FOUR PERCENT FROM FORTY PERCENT IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE FIGURES ARE UNAUDITED LAST MONTH IN THE COUNTRY'S LARGEST PRIVATIZATION SAUDI ARABIAN OIL COMPANY SUBMITTED THE HIGHEST BID OF FIVE HUNDRED TWO MILLION DOLLARS FOR A FORTY PERCENT STAKE IN PETRON DETAILS OF THE SALE HAVE YET TO BE WORKED OUT BUT AT LEAST ONE OBSTACLE HAS BEEN OVERCOME MALAYSIA'S WESTMONT HOLDINGS SDN B. H. D. WHICH WAS DISQUALIFIED FROM BIDDING FOR PETRON ON TECHNICAL GROUNDS HAS WITHDRAWN ITS PROTEST OVER THE CONDUCT OF THE EXERCISE WESTMONT GAVE NO REASON FOR ITS CHANGE OF HEART PETRON THE WHOLLY OWNED SUBSIDIARY OF THE STATE PHILIPPINE NATIONAL OIL COMPANY HOPES TO GARNER PERHAPS EVEN MORE THAN THE SAUDI ARAMCO DEAL FROM A SECONDARY PUBLIC OFFERING OF A BILLION ONE PESO PAR VALUE SHARES REPRESENTING TWENTY PERCENT OF THE COMPANY IN DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PETRON SAID IT EXPECTED THE ISSUE TO TOTAL BETWEEN SIX BILLION PESOS AND SIXTEEN BILLION PESOS EVEN AT THE MINIMUM AMOUNT THE OFFERING WOULD BE BY FAR THE COUNTRY'S LARGEST STOCK OFFERING EVER IN THE SCORCHING HOT DOMAIN OF EMERGING MARKET STOCK FUNDS ONE OF THE HOTTEST HANDS AROUND IS MORGAN STANLEY'S THIRTY TWO YEAR OLD MADHAV DHAR THE SHARES OF MORGAN STANLEY EMERGING MARKETS A CLOSED END FUND MR. DHAR MANAGES GAINED NINETY TWO POINT FIVE PERCENT IN NINETEEN NINETY THREE QUOTE IT'S BOOM TIME QUOTE MR. DHAR SAYS WITH AN EXPANSIVE SWEEP OF HIS ARMS INVESTORS ARE POURING MONEY INTO THE STOCK MARKETS OF FAST GROWING DEVELOPING NATIONS SUCH AS ARGENTINA MALAYSIA AND TURKEY PUSHING UP PRICES YET MR. DHAR SAYS THE EUPHORIA IN EMERGING STOCK MARKETS SORT OF FRIGHTENS ME BECAUSE IT MAY PORTEND A SETBACK MR. DHAR NEATLY FRAMES THE DILEMMA FACING INVESTORS WATCHING THE HOT RETURNS OF EMERGING MARKETS FUNDS SHOULD INVESTORS DIVE INTO THESE MARKETS WHILE THEY'RE MOVING UP OR WAIT TO INVEST AFTER A CORRECTION MR. DHAR'S ADVICE PUT YOUR MONEY IN NOW IF YOU'RE INVESTING FOR THE LONG HAUL BUT REGULAR OPEN END FUNDS MIGHT MAKE MORE SENSE THAN PUBLICLY TRADED CLOSED END FUNDS SELLING AT HIGH PRICES AND IF YOU'RE INVESTING FOR THE SHORT TERM OR YOU CAN'T STAND TO SUFFER ANY LOSS STAY AWAY THERE MAY BE A ROUGH RIDE IN THE YEAR AHEAD MR. DHAR SAYS I FEEL A LITTLE QUEASY AT INVESTORS' NEW FOUND ENTHUSIASM FOR EMERGING MARKETS HE SAYS GIVEN THE FROTHY PSYCHOLOGY OF THESE MARKETS HE SAYS A SCARE TO INVESTORS COULD TRIGGER A ROUT IN THE STOCKS MOREOVER INVESTORS GOING THE ROUTE OF CLOSED END FUNDS MUST TODAY PAY HEFTY PREMIUMS MEANING THEY PAY MUCH MORE THAN ONE DOLLAR FOR EVERY DOLLAR'S WORTH OF STOCK HELD IN THE FUND BECAUSE THE SHARES OF CLOSED END FUNDS TRADE ON EXCHANGES THEY FLUCTUATE ABOVE AND BELOW THE VALUE OF THE SECURITIES HELD IN THE FUNDS' PORTFOLIOS SHARES IN MR. DHAR'S FUND FOR INSTANCE TRADE AT A SIZABLE PREMIUM OF ABOUT SEVENTEEN PERCENT OVER THE FUND'S NET ASSETS IF INVESTOR PSYCHOLOGY TURNS BEARISH INVESTORS COULD BE WHIPSAWED AS THE SHARES PLUNGE FROM A PREMIUM TO A DISCOUNT TO THE UNDERLYING PORTFOLIO BUT FOR THE PATIENT INVESTOR MR. DHAR SAYS THAT PUTTING PART OF A PORTFOLIO INTO THESE MARKETS COULD TURBOCHARGE RETURNS OVER THE NEXT FIVE OR TEN YEARS DESPITE THEIR SWIFT RUN UP LAST YEAR QUOTE THE FUNDAMENTALS ARE FINE QUOTE IN EMERGING MARKETS HE SAYS THE STOCKS HELD IN MORGAN STANLEY EMERGING MARKETS' FOUR HUNDRED MILLION DOLLARS PORTFOLIO SELL FOR SEVENTEEN TIMES PROJECTED NINETEEN NINETY FOUR EARNINGS ABOUT IN LINE WITH THE U. S. MARKET BUT MR. DHAR EXPECTS EARNINGS AT THE COMPANIES TO GROW FIFTEEN PERCENT TO EIGHTEEN PERCENT IN DOLLAR TERMS THAT'S FAR FASTER THAN THE SIX PERCENT TO EIGHT PERCENT GROWTH EXPECTED IN U. S. CORPORATE EARNINGS IN TIME MR. DHAR SAYS SWIFTLY RISING EARNINGS SHOULD BOOST EMERGING MARKET STOCKS FASTER THAN SHARES IN DEVELOPED MARKETS SUCH AS THE U. S. MR. DHAR SAYS HE HAS EIGHTY PERCENT OF HIS PERSONAL FINANCIAL ASSETS INVESTED IN EMERGING MARKETS A FAR HIGHER PROPORTION THAN HE WOULD PROPOSE FOR MOST PEOPLE THAT EIGHTY PERCENT ALLOCATION MAY BE TOO HIGH FOR THE NEXT MONTH OR YEAR IF A CORRECTION HITS HE SAYS BUT IT'S CERTAINLY NOT TOO HIGH FOR THE NEXT FIVE YEARS A LOT OF FUND WATCHERS AGREE THESE THINGS HAVE RUN PRETTY HARD THE LAST FEW MONTHS SAYS SUSAN PALUCH AN ANALYST AT MORNINGSTAR CLOSED END FUNDS A NEWSLETTER IN CHICAGO WHO KNOWS HOW LONG THEY CAN SUSTAIN THAT BUT AS LONG TERM PLAYS THEY HAVE A LOT OF POTENTIAL MR. DHAR ALONG WITH MARKET GURU BARTON BIGGS HEADS A MORGAN STANLEY GROUP THAT MANAGES FOUR POINT FIVE BILLION DOLLARS IN EMERGING MARKETS ASSETS BESIDES THE EMERGING MARKETS CLOSED END FUND MORGAN STANLEY RUNS A HOST OF SINGLE COUNTRY AND REGIONAL CLOSED END FUNDS AND MANAGES MONEY FOR INSTITUTIONAL INVESTORS AS WELL MORGAN STANLEY RUNS AN OPEN END FUND AIMED AT INSTITUTIONS WITH A HIGH MINIMUM INVESTMENT OF FIVE HUNDRED THOUSAND DOLLARS THAT FUND HAD A TOTAL RETURN IN NINETEEN NINETY THREE OF EIGHTY FIVE POINT EIGHT ONE PERCENT INCLUDING PRICE GAINS AND REINVESTED DIVIDENDS MR. DHAR'S FUNDS HAVE A TEAM OF MANAGERS AND ANALYSTS WHO PICK STOCKS MR. DHAR OVERSEES THE TEAM AND DECIDES WITH MR. BIGGS WHO ALSO HEADS UP ALL OF MORGAN STANLEY ASSET MANAGEMENT HOW MUCH SHOULD GO INTO EACH COUNTRY THE BIGGEST COUNTRIES FOR THE FUNDS CLOSED END AND OPEN END NOW ARE BRAZIL FOURTEEN PERCENT INDIA TWELVE PERCENT AND HONG KONG AND CHINA TWELVE PERCENT MR. DHAR WHO TALKED HIS WAY INTO A JOB AT MORGAN STANLEY DURING A HIRING FREEZE WEAVES A COLORFUL CASE FOR EMERGING MARKETS' PROSPECTS SURPRISINGLY HE SAYS DEVELOPING NATIONS ARE BOOMING THANKS TO THE COLLAPSE OF THE SOVIET UNION PREVIOUSLY QUOTE DEVELOPING COUNTRIES DID NOT DEVELOP BECAUSE THEY WERE SEDUCED AWAY FROM CAPITALISM BY ANOTHER MORE NOBLE IDEOLOGY QUOTE HE SAYS THE SOVIET UNION OFFERED A MODEL FOR ECONOMIC DEVELOPMENT WITHOUT BIG MACS BUT NOW DEVELOPING NATIONS ARE EMBRACING MARKET ECONOMIES EVEN THOUGH COMPETITION HURTS VERY BADLY UNTIL A SYSTEM STABILIZES WHAT STOCKS DOES HE LIKE HOUSING DEVELOPMENT FINANCE CORPORATION IS A MONOPOLY MORTGAGE FINANCE COMPANY IN INDIA WHILE THE STOCK PRICE IS EXPENSIVE AT TWENTY TIMES EARNINGS IT'S BENEFITING FROM THE GROWTH OF THE INDIAN MIDDLE CLASS AT A TEN PERCENT ANNUAL RATE AND A CHANGE IN CUSTOMS LEADING YOUNG INDIANS TO MOVE OUT OF THEIR FAMILIES' HOMES ENTERPRISES QUILMES IN ARGENTINA IS AN EXTREMELY WELL MANAGED BEER COMPANY MR. DHAR SAYS WHILE PHILIP MORRIS AND OTHER U. S. COMPANIES ARE TAKING SHARE AWAY FROM FOREIGN TOBACCO COMPANIES BEER TASTES ARE QUITE LOCAL IN BRAZIL THE STOCK OF ELECTROBRAS THE ELECTRIC MONOPOLY IS CHEAP QUOTE IT'S HAD A TWO HUNDRED PERCENT MOVE QUOTE BUT IT STILL SELLS FOR ONLY QUOTE THIRTY PERCENT OF BOOK VALUE QUOTE HE'S ALSO INVESTED IN BRADESCO A BRAZILIAN COMMERCIAL BANK EVEN THOUGH NO CREDIT IS AVAILABLE IN BRAZIL CURRENTLY IF INFLATION COMES DOWN THERE WILL BE A BOOM IN CREDIT IN BRAZIL INDOCEMENT IN INDONESIA IS A BIG POSITION BECAUSE THE DEVELOPMENT OF THE COUNTRY WILL REQUIRE HEAVY INFRASTRUCTURE SPENDING BUT IT'S HARDER TO FIND AFFORDABLE INFRASTRUCTURE PLAYS AROUND THE WORLD THAN PREVIOUSLY MR. DHAR SAYS BECAUSE THERE ARE SO MANY INVESTORS CHASING THEM MR. DHAR LIKES PEC ISRAEL ECONOMIC CORPORATION WHICH IS A QUASI CLOSED END FUND THAT BUYS TROUBLED COMPANIES FIXES THEM UP AND TAKES THEM PUBLIC IT HAS ONE OF THE SMARTEST MANAGEMENTS WE'VE SEEN EASTERN EUROPE WE OWN A LOT OF RUSSIAN DEBT WHICH HAS BEEN FABULOUS MR. DHAR SAYS AFRICA THE FUND HAS AMONG OTHER THINGS A STAKE IN A CLOSELY HELD CHICKEN RANCHING FIRM IN ZIMBABWE CALLED TRANSZAMBEZE QUOTE YOU CAN'T BUY STOCKS OFF THE COMPUTER SCREEN QUOTE IN EMERGING MARKETS MR. DHAR SAYS WE LIKE COMPANIES THAT ARE HARD TO ANALYZE MR. DHAR GOT INTO MORGAN STANLEY DURING A HIRING FREEZE BY OFFERING TO WORK WITHOUT PAY FOR SIX MONTHS SAYS MR. BIGGS HE REALLY JUST SORT OF TALKED HIS WAY FROM BUSINESS SCHOOL INTO GETTING A JOB MR. BIGGS SAYS THE GUY SAID I REALLY WANT TO DO THIS YOU DON'T HAVE TO PAY ME IT WAS CLEAR AFTER HE'D BEEN HERE FOR A WHILE THAT HE WAS A REAL DYNAMO MR. DHAR'S INTEREST IN EMERGING MARKETS GOES BEYOND A PROFESSIONAL ONE HE WAS BORN IN DELHI INDIA TO A PRIVILEGED FAMILY HIS FATHER A PROFESSOR WAS AN ADVISER TO INDIAN LEADER INDIRA GANDHI MR. DHAR STUDIED ASTROPHYSICS AT SAINT STEPHENS COLLEGE DELHI UNIVERSITY INDIA BUT DISAPPOINTED HIS FATHER AN ARDENT SOCIALIST BY GOING TO CARNEGIE MELLON IN PITTSBURGH TO GET AN M. B. A. TEN YEARS AGO HE WAS CRUSHED THAT I WAS GOING TO MORGAN STANLEY MR. DHAR SAYS QUOTE I SOLD MY SOUL QUOTE BUT WHILE HIS OWN BACKGROUND WAS AFFLUENT I GREW UP AROUND EXTREME POVERTY YOU NEVER FORGET THAT THAT'S WHY HE SAYS HE TAKES SUCH PLEASURE IN WATCHING THE BOOM IN DEVELOPING COUNTRIES YOU'RE SEEING POOR PEOPLE GET RICH IN FRONT OF YOU HE SAYS I CAN'T GET VERY EXCITED DECIDING WHETHER TO BUY G. M. OR CHRYSLER A STATE COURT JUDGE HERE ISSUED A PRELIMINARY ORDER THROWING OUT THE BULK OF THE CLAIMS IN A LAWSUIT FILED IN NINETEEN NINETY TWO BY METRO GOLDWYN MAYER INCORPORATED AGAINST THE STUDIO'S FORMER OWNER KIRK KERKORIAN AND OTHERS BUT A SIMILAR SUIT FILED BY M. G. M.'S OWNER FRENCH BANK CREDIT LYONNAIS S. A. WASN'T DIRECTLY AFFECTED NEITHER WERE CLAIMS AGAINST THE LOS ANGELES ACCOUNTING FIRM HOULIHAN LOKEY HOWARD AND ZUKIN WHICH ALSO HAD BEEN A DEFENDANT THE SUIT WHICH SOUGHT SEVEN HUNDRED FIFTY MILLION DOLLARS IN DAMAGES HAD CHARGED THAT MR. KERKORIAN HIS TRACINDA CORPORATION AND TWO ASSOCIATES BREACHED FIDUCIARY DUTY BY NOT DISCLOSING THE STUDIO'S TRUE FINANCIAL PROBLEMS WHEN THEY SOLD IT TO ITALIAN FINANCIER GIANCARLO PARRETTI IN NINETEEN NINETY FOR ONE POINT THREE BILLION DOLLARS THE BANK FOLLOWED UP QUICKLY WITH ITS OWN LAWSUIT CHARGING FRAUD TRACINDA COUNTERSUED CREDIT LYONNAIS HAD LOANED MR. PARRETTI MUCH OF THE MONEY FOR THE NINETEEN NINETY ACQUISITION HOULIHAN LOKEY ISSUED A SOLVENCY OPINION AT THE TIME OF THE SALE BUT MR. PARRETTI ENCOUNTERED CASH FLOW PROBLEMS ALMOST IMMEDIATELY AND AFTER A YEAR THE BANK OUSTED HIM THEN FOUGHT HIM IN COURT FOR NEARLY ANOTHER YEAR TO GET THE OUSTER APPROVED THE BANK WOUND UP TAKING POSSESSION OF THE STUDIO IN A DEFAULT ITS EXPOSURE WELL OVER ONE BILLION DOLLARS TRACINDA'S ATTORNEY IN THE M. G. M. MATTER SETH HUFSTEDLER SAID QUOTE WE'RE OBVIOUSLY PLEASED WITH THE JUDGE'S RULING QUOTE BUT WOULDN'T COMMENT FURTHER UNTIL THE ORDER WAS FINALIZED A CREDIT LYONNAIS SPOKESMAN CALLED THE ORDER BY LOS ANGELES SUPERIOR COURT JUDGE RICHARD C. HUBBELL UNCLEAR AND ADDED WE ARE SEEKING CLARIFICATION FROM JUDGE HUBBELL OF HIS BRIEF ORDER BUT ONE THING THAT IS CLEAR IS THAT THE BANK'S CASE AGAINST THE TRACINDA DEFENDANTS SURVIVES IN FULL AND M. G. M.'S CASE AGAINST HOULIHAN LOKEY SURVIVES THE BANK AND M. G. M. WILL VIGOROUSLY PROSECUTE THESE CLAIMS JUDGE HUBBELL GAVE NO REASONS FOR HIS ORDER WHICH WAS A REVERSAL OF AN EARLIER RULING BY A RETIRED JUDGE ACTING AS A COURT REFEREE ONE ARGUMENT USED BY TRACINDA WAS THAT BECAUSE CREDIT LYONNAIS ACTUALLY ACQUIRED THE STUDIO ALMOST TWO YEARS AFTER IT SAYS IT WAS MISLED IT KNEW FULL WELL BY THAT TIME THE EXTENT OF THE PROBLEMS THE STUDIO ARGUED THAT THE BANK DIDN'T HAVE MUCH CHOICE IN ACQUIRING M. G. M. BECAUSE OF ITS LOAN EXPOSURE AND THAT THE SALE WAS MORE OR LESS A FORECLOSURE PEOPLE CLOSE TO BOTH SIDES WEREN'T CERTAIN WHETHER THE BANK'S LAWSUIT WOULD BE AFFECTED BUT JUDGE HUBBELL IS PRESIDING OVER THAT LAWSUIT AS WELL IF IT WEREN'T FOR THE BATTLE OVER DEER CONTRACEPTIVES ARNOLD ECKERT AND SANDY BAKER MIGHT BE MORE CIVIL TO EACH OTHER DEER CONTRACEPTIVES WAIT IT GETS WEIRDER MR. ECKERT CALLS MS. BAKER AND HER SUPPORTERS QUOTE LOONEY TUNES QUOTE BECAUSE THEY WANT TO USE BIRTH CONTROL TO LIMIT THE BURGEONING DEER POPULATION HERE THESE DEER HUGGERS HE SAYS ARE A HATEFUL BUNCH WHO PLANTED A FAKE PIPE BOMB UNDER HIS CAR I'VE NEVER SEEN SUCH VINDICTIVE VICIOUS PEOPLE IN MY LIFE SPUTTERS MR. ECKERT WHO HEADS AN EFFORT TO CULL THE NUMBER OF DEER BY LURING THEM TO ISOLATED SPOTS WITH FOOD AND SHOOTING THEM MS. BAKER A MEMBER OF THE MONROE COUNTY ALLIANCE FOR WILDLIFE PROTECTION IS A PETITE WOMAN WHO SEEMS TO SHRINK BEHIND THE WHEEL OF HER GRAY CADILLAC SHE DENIES HAVING ANYTHING TO DO WITH THE PHONY BOMB INDEED SHE WONDERS IF MR. ECKERT STAGED THE WHOLE THING TO DEFLECT ATTENTION FROM THE DEER SLAUGHTER I'M NO ANIMAL RIGHTS FANATIC I'M NOT EVEN A VEGETARIAN SHE SAYS I JUST THINK WE SHOULD LOOK AT ALTERNATIVES BEFORE WE START KILLING THE DEER WARS HAVE DIVIDED THE STREETS AND CUL DE SACS OF THIS ROCHESTER SUBURB HOME TO SIXTY THOUSAND PEOPLE AND A HOTLY DISPUTED NUMBER OF DEER THOSE WHO HATE THEM SAY THERE MUST BE FIVE HUNDRED OR MORE DEER ROAMING AROUND PRO DEER FORCES SAY THERE IS NO SCIENTIFIC BASIS TO ESTIMATE THE NUMBER BUT MAINTAIN THAT WHATEVER THE ANTIDEER FORCES CALCULATE IT'S INFLATED MANY SUBURBAN COMMUNITIES ARE STRUGGLING TO CONTEND WITH WHITE TAILED DEER WHICH MUNCH ON SHRUBBERY AND GARDEN PLANTS LIKE GRAZERS AT A SALAD BAR WHILE THEIR SHARP HOOVES LACERATE THE LAWNS WORSE THE GRACEFUL ANIMALS HAVE FEW NATURAL PREDATORS IN THE SUBURBS BESIDES DODGE MINIVANS AND BUICK SKYLARKS AND AS THE NUMBER OF DEER IN POPULATED AREAS INCREASES SO DO RELATED ROAD ACCIDENTS HITTING A DEER OR GETTING HIT BY ONE CAN KILL THE ANIMAL AND MANGLE THE CAR SWERVING WILDLY TO AVOID COLLISION CAN BE JUST AS DANGEROUS ALSO NO ONE WANTS TO SEE WHITE TAILED CARCASSES ALONG THE HIGHWAY ESPECIALLY IN THE SUMMER SUN THE SITUATION HAS TURNED PARTICULARLY NASTY IN IRONDEQUOIT WHERE MANY OF THE PRICIEST HOMES ARE BUILT ALONG THE FRINGES OF DURAND EASTMAN PARK NINE HUNDRED SIXTY ONE LUSH ACRES THAT INCLUDE AN EIGHTEEN HOLE GOLF COURSE AND MOST OF THE TOWN'S DEER THOMAS GRISWOLD AN EIGHTY ONE YEAR OLD RETIRED ENGINEER LIVES ON A WINDING LANE NEXT TO THE PARK AND POINTS TO SKELETAL REMAINS OF SHRUBS LEFT BY WHITETAILS WHO AMBLE OVER FOR A SNACK THIS IS NO WAY TO LIVE HE FUMES WHAT MOST GALLS DEER LOVERS IN IRONDEQUOIT IS OFFICIALS' REFUSAL TO CONSIDER SUCH HUMANE ALTERNATIVES TO KILLING AS BIRTH CONTROL BIZARRE AS IT SOUNDS RESEARCHERS SAY THEY ARE WITHIN A FEW YEARS OF DISTRIBUTING A CHEAP AND EFFECTIVE CONTRACEPTIVE VACCINE FOR DEER THAT COULD BE USED IN CERTAIN CONTROLLED SETTINGS SUCH AS IRONDEQUOIT'S PARK SUCH CONTRACEPTIVE INJECTIONS ALREADY HAVE BEEN SUCCESSFULLY TESTED ON WILD HORSES AND TWENTY SEVEN SPECIES OF ZOO ANIMALS INCLUDING AFRICAN LIONS AND RIVER HIPPOS IRONDEQUOIT TURNED DOWN AN OFFER TO PARTICIPATE IN A TEST OF THESE BIRTH CONTROL INJECTIONS WHICH ARE ADMINISTERED BY DART GUNS INSTEAD THE TOWN AND COUNTY DECIDED LAST FALL TO LAUNCH A QUOTE BAIT AND SHOOT QUOTE PROGRAM OVER A SERIES OF NIGHTS OFF DUTY POLICEMEN LURED ABOUT EIGHTY DEER TO ISOLATED SPOTS WITH HEAPS OF CORN FLIPPED ON LIGHTS AND BLASTED AWAY HUNDREDS OF ROUNDS OF GUNSHOTS ECHOED THROUGH THIS TOWN'S NORMALLY QUIET LEAFY STREETS AND CAUSED AN UPROAR ANGRY RESIDENTS MARCHED IN FRONT OF TOWN HALL AND OPPONENTS OF THE SHOOTING STARTED TYING PURPLE RIBBONS TO LAMPPOSTS AND MAILBOXES SOME PARENTS COMPLAINED THE NOISE KEPT CHILDREN AWAKE WHILE DEER ADVOCATES TRIED TO SNEAK PAST POLICE BARRICADES TO DISRUPT THE PROGRAM ANOTHER ONE HUNDRED SIXTY DEER ARE SLATED TO BE KILLED THIS WINTER ALTHOUGH OFFICIALS NOW SAY THEY HAVE BOUGHT SUPPRESSORS TO MUFFLE THE GUNSHOTS IT WAS DURING THIS CULLING PROGRAM THAT MR. ECKERT WHO IS PRESIDENT OF THE MONROE COUNTY LEGISLATURE STARTED OUT ONE MORNING ON HIS DAILY WALK AND FOUND THE FAKE PIPE BOMB LYING IN HIS DRIVEWAY HIS CAR HAD BEEN VANDALIZED WITH SWASTIKAS SCRATCHED ON THE TRUNK AND THE WORDS DEER KILLER ETCHED ON A DOOR THESE ARE THE SAME FOLKS WHO CAN'T BEAR TO SEE AN ANIMAL DIE HE SAYS MR. ECKERT ADDS THAT HE TALKED TO JAY KIRKPATRICK ONE OF THE WILDLIFE CONTRACEPTIVE EXPERTS ABOUT THE VACCINE LAST YEAR BUT DECIDED IT WAS UNPROVEN IF YOU'RE GOING TO USE A HIGH POWERED RIFLE TO DART DEER WHY NOT JUST PUT A BULLET IN THEIR HEADS HE ASKS MR. KIRKPATRICK DIRECTOR OF CONSERVATION BIOLOGY FOR ZOOMONTANA A REGIONAL ZOO IN BILLINGS MONTANA CONCEDES THE VACCINE STILL HAS SOME DRAWBACKS CURRENTLY ANIMALS MUST BE DOSED TWICE IN ONE MONTH TO BE INFERTILE FOR A YEAR THE TECHNOLOGY IS DESIGNED FOR SMALL URBAN POPULATIONS HE SAYS WHERE ANIMALS ARE EASILY MONITORED AND LESS FRIGHTENED OF PEOPLE HE IS NOW WORKING ON A ONE SHOT TREATMENT WHICH SHOULD BE READY IN A FEW YEARS QUOTE ONCE WE HAVE THAT QUOTE HE SAYS QUOTE WE WILL BE READY TO DISTRIBUTE IT WIDELY QUOTE DRIVING IRONDEQUOIT'S WINDING STREETS IT'S EASY TO SEE WHO IS ON WHICH SIDE OPPONENTS OF THE BAIT AND SHOOT PROGRAM HAVE HUNG OUT PURPLE RIBBONS WHILE THOSE WHO HATE THE DEER TEND TO HAVE THE BESTKEPT YARDS OFTEN FENCED THAT GUY OVER THERE ACTUALLY USES A VACUUM CLEANER IN HIS YARD SAYS MURIEL ARNOLD WHO HAS TWO PURPLE RIBBONS DISPLAYED AND DEER CARVED ON HER MAILBOX MS. ARNOLD SAYS ONCE FRIENDLY NEIGHBORS BEGAN SNUBBING HER WHEN THEY LEARNED SHE LIKES DEER ONE MAN SHOWED UP AT HER DOOR WITH A BAG OF DEER DROPPINGS IN HIS HAND DEMANDING SHE STOP TOSSING APPLES IN HER YARD FOR THE ANIMALS HE SHOOK THIS STUFF IN MY FACE AND SAID IT WAS MY FAULT IT WAS IN HIS LAWN SHE RECALLS SHE'S ONE OF THESE BAMBI LOVERS ALL RIGHT SAYS DONALD BURNESS THE NEIGHBOR HE ADMITS CARRYING OVER THE BAG OF DROPPINGS BUT SAYS HE WAS ONLY TRYING TO DRIVE HOME HIS POINT IT MUST HAVE WEIGHED TEN POUNDS HE SAYS MS. BAKER WHO LIVES ON THE OTHER SIDE OF THE PARK SAYS SHE HAS GOTTEN PHONE CALLS FROM PEOPLE WHO MUTTERED SHE SHOULD BE SHOT ALONG WITH THE ANIMALS ANOTHER DEER FAN WAS CONFRONTED THREE TIMES BY AN IRATE ANTIDEER MOM WHO IS SO SPOOKED AT THE NUMBER OF DEER ON THE ROAD SHE THREATENED TO COME AFTER THE DEER LOVER'S SON AND DAUGHTER IF HER OWN CHILDREN EVER ARE HURT IN A DEER CAR COLLISION LARAMIE BROWN A SEVENTH GRADE SCIENCE TEACHER WHO HEADS THE IRONDEQUOIT DEER ACTION COMMITTEE THAT ADVOCATES THE CULLING PROGRAM SAYS IT'S NOT THE DEERBUT THE DEER LOVERS WHO IRRITATE HER MOST SHE SAYS SHE ONCE WAS INTENTIONALLY TRIPPED BY AN OPPONENT AT A PUBLIC HEARING AND A FAKE BOMB TURNED UP IN HER MAILBOX JUST DAYS AFTER MR. ECKERT FOUND HIS DEER ARE OUR ABORTION ISSUE SHE SAYS QUOTE IT BRINGS OUT THE EXTREMISTS QUOTE CYTEC INDUSTRIES INCORPORATED A RECENT SPIN OFF OF AMERICAN CYANAMID COMPANY ANNOUNCED SEVERAL KEY EXECUTIVE APPOINTMENTS THE CHEMICAL MANUFACTURER NAMED DARRYL D. FRY FIFTY FOUR YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR. FRY WAS FORMERLY AN EXECUTIVE VICE PRESIDENT OF CYANAMID AND PRESIDENT OF THE COMPANY'S CHEMICAL GROUP IN A MOVE TO TRANSFORM ITSELF FURTHER INTO A MEDICAL AND AGRICULTURAL PRODUCTS COMPANY CYANAMID ANNOUNCED ITS INTENTIONS TO SPIN OFF ITS CYTEC UNIT EARLY LAST YEAR IN ADDITION JAMES P. CRONIN FORTY WAS ALSO NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR. CRONIN WAS PREVIOUSLY CONTROLLER AT CYANAMID'S CHEMICAL GROUP CYTEC ALSO NAMED TWO FORMER VICE PRESIDENTS OF CYANAMID'S CHEMICAL GROUP EXECUTIVE VICE PRESIDENTS STEPHEN M. CRUM FORTY TWO AND CHARLES A. RUIBAL FORTY SIX ZEOS INTERNATIONAL LIMITED FURTHERING THE CONSOLIDATION IN THE PERSONAL COMPUTER INDUSTRY SAID IT SIGNED A LETTER OF INTENT TO BUY COMPUADD CORPORATION A COMPETITOR IN THE MAIL ORDER COMPUTER BUSINESS ZEOS IN A STATEMENT DIDN'T DISCLOSE THE PURCHASE PRICE ALTHOUGH IT SAID IT PLANNED TO PAY FOR COMPUADD WITH A COMBINATION OF CASH AND STOCK RICHARD W. KRAUSE COMPUADD'S PRESIDENT DECLINED TO DISCLOSE FURTHER DETAILS NOTING THAT THE DEAL HAS NOT YET BEEN COMPLETED HE SAID IT WAS TOO EARLY TO TELL WHETHER THE COMPUADD NAME WOULD SURVIVE OR WHETHER HE WOULD HAVE A ROLE IN THE COMBINED COMPANY IN NOVEMBER ZEOS DISCLOSED THAT IT HAD BEGUN QUOTE VERY PRELIMINARY QUOTE MERGER TALKS WITH COMPUADD WHICH EMERGED FROM BANKRUPTCY COURT PROTECTION TWO MONTHS AGO CLOSELY HELD COMPUADD FILED FOR CHAPTER ELEVEN PROTECTION AFTER STUMBLING IN ITS ATTEMPTS TO EXPAND INTO P. C. RETAILING THE COMPANY HAS SAID IT EXPECTS REVENUE THIS YEAR OF ABOUT TWO HUNDRED FIFTY MILLION DOLLARS ZEOS HAD SALES OF ONE HUNDRED SIXTY NINE MILLION DOLLARS FOR THE FIRST NINE MONTHS OF NINETEEN NINETY THREE AND A NET LOSS OF NINE MILLION DOLLARS OR ONE DOLLAR AND FIVE CENTS A SHARE IN THE YEAR EARLIER NINE MONTHS ZEOS REPORTED A LOSS OF TWENTY ONE MILLION DOLLARS OR TWO DOLLARS AND FORTY FIVE CENTS A SHARE ON REVENUE OF ONE HUNDRED FIFTY NINE POINT TWO MILLION DOLLARS NEWS OF THE DEAL CAME AFTER THE CLOSE OF THE STOCK MARKET YESTERDAY ZEOS WAS QUOTED AT THREE POINT THREE SEVEN FIVE DOLLARS UP TWELVE POINT FIVE CENTS IN NASDAQ STOCK MARKET TRADING ZEOS CHAIRMAN GREGORY E. HERRICK SAID IN A STATEMENT THAT HE WAS ATTRACTED TO COMPUADD BY ITS WINNING GROUP OF EMPLOYEES AND A LOYAL CUSTOMER BASE THE COMPANY SAID THE TRANSACTION IS SUBJECT TO A DEFINITIVE AGREEMENT REGULATORY APPROVAL AND THE CONSENT OF COMPUADD'S LENDERS METRO GOLDWYN MAYER INCORPORATED SAID IT NAMED RICHARD COHEN PRESIDENT OF THE STUDIO'S HOME VIDEO AND NEW MEDIA ELECTRONIC PUBLISHING UNIT M. G. M. SLASH U. A. HOME ENTERTAINMENT MR. COHEN FORTY THREE YEARS OLD IS BEST KNOWN IN HOLLYWOOD FOR SERVING AS EXECUTIVE VICE PRESIDENT OF WALT DISNEY COMPANY'S HOME VIDEO UNIT LATE IN NINETEEN NINETY TWO HE DEPARTED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTERNATIONAL CABLECASTING TECHNOLOGIES INCORPORATED BASED IN LONDON M. G. M. IS OWNED BY FRENCH BANK CREDIT LYONNAIS S. A. VIACOM INCORPORATED AND BLOCKBUSTER ENTERTAINMENT CORPORATION ARE NEGOTIATING A MERGER AIMED AT ENABLING VIACOM TO OUTBID RIVAL Q. V. C. NETWORK INCORPORATED IN THE BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION VIACOM AND BLOCKBUSTER WERE SCRAMBLING TO PUT THE FINISHING TOUCHES ON A DEAL VALUING BLOCKBUSTER AT ABOUT SEVEN BILLION DOLLARS THAT COULD BE ANNOUNCED TODAY AS AN INTERIM STEP TO THE MERGER PLAN THESE PEOPLE SAID BLOCKBUSTER MIGHT INCREASE AN EARLIER SIX HUNDRED MILLION DOLLAR INVESTMENT IN VIACOM BY AS MUCH AS ONE BILLION DOLLARS VIACOM COULD USE THE CASH TO SWEETEN ITS PARAMOUNT BID CURRENTLY VALUED AT NINE POINT THREE BILLION DOLLARS TONIGHT IS THE DEADLINE FOR VIACOM TO TOP Q. V. C.'S OFFER CURRENTLY VALUED AT NINE POINT EIGHT BILLION DOLLARS IF VIACOM DOESN'T MAKE A NEW BID BY THE END OF TODAY Q. V. C. CHAIRMAN BARRY DILLER COULD WIN THE FOUR MONTH CONTEST PROVIDED THAT HOLDERS OF FIFTY ONE PERCENT OF PARAMOUNT SHARES TENDER THEIR STOCK TO Q. V. C. THE CABLE T. V. HOME SHOPPING CHANNEL BUT A VIACOM BLOCKBUSTER MERGER ALONG WITH A HIGHER VIACOM BID COULD PROLONG THE CONTEST FOR WEEKS THE BOARDS OF VIACOM AND BLOCKBUSTER WERE MEETING LATE YESTERDAY TO DISCUSS THE MERGER PLAN BUT THE PEOPLE FAMILIAR WITH THE PLAN CAUTIONED THAT AN AGREEMENT WASN'T GUARANTEED AND THAT IMPORTANT POINTS REMAINED UNRESOLVED FOR EXAMPLE ONE PERSON SAID THAT THE MERGER AGREEMENT MIGHT BE CONTINGENT ON VIACOM'S WINNING THE BIDDING CONTEST ANOTHER REMOTE POSSIBILITY WAS THAT THE TWO COMPANIES WOULD FORM A JOINT VENTURE POOLING SOME OF THEIR ASSETS IF THEY COULDN'T REACH A MERGER ACCORD BUT THE BROAD OUTLINES OF A MERGER HAD BEEN WORKED OUT THE PEOPLE SAID IN THE MERGER BEING DISCUSSED VIACOM WHICH OWNS M. T. V. NICKELODEON SHOWTIME AND OTHER CABLE T. V. CHANNELS WOULD ISSUE STOCK TO ACQUIRE BLOCKBUSTER A FAST GROWING CHAIN OF VIDEO RENTAL STORES A VIACOM BLOCKBUSTER MERGER WOULD TAKE LONGER TO COMPLETE THAN THE PARAMOUNT BIDDING TIMETABLE ALLOWS BUT BLOCKBUSTER'S POSSIBLE ONE BILLION DOLLAR ADDITIONAL INVESTMENT WOULD ENABLE VIACOM TO MOVE MORE SWIFTLY TO IMPROVE ITS OFFER FOR PARAMOUNT IF THE TWO COMPANIES CAN'T REACH AGREEMENT IN TIME THEY MIGHT SIMPLY DISCLOSE TODAY THAT THEY ARE HOLDING MERGER TALKS AND APPEAL TO PARAMOUNT SHAREHOLDERS FOR MORE TIME TO MAKE A NEW BID WHICH COULD DEPRIVE Q. V. C. OF THE NEEDED FIFTY ONE PERCENT TRADERS SAID THAT BLOCKBUSTER AND VIACOM TOGETHER WOULD HAVE A STRONGER BALANCE SHEET AND MORE BORROWING POWER TO SWEETEN VIACOM'S OFFER THE COMBINATION WOULD ALSO EXPAND BLOCKBUSTER'S ROLE FROM SIMPLY AN INVESTOR IN VIACOM TO A MAJOR SHAREHOLDER AND PARTNER IN ANY ACQUISITION OF PARAMOUNT THE PEOPLE SAID A HIGHER OFFER FROM THE VIACOM CAMP COULD ALSO HEIGHTEN THE DRAMA IN THE BATTLE FOR PARAMOUNT BY FORCING Q. V. C. TO SWEETEN ITS OFFER FOR A THIRD TIME EXACT TERMS OF THE PROPOSED VIACOM BLOCKBUSTER MERGER COULDN'T BE LEARNED VIACOM CHAIRMAN SUMNER REDSTONE WHO HAS AN EIGHTY FOUR PERCENT VOTING STAKE AND SEVENTY SIX PERCENT ECONOMIC STAKE IN VIACOM IS EXPECTED TO REMAIN IN CONTROL THOUGH HIS OVERALL STAKE WOULD LIKELY BE DIMINISHED BUT BLOCKBUSTER CHAIRMAN WAYNE HUIZENGA WHO CONTROLS A NINE POINT TWO PERCENT STAKE IN THE FORT LAUDERDALE FLORIDA COMPANY WOULD BECOME A POWER IN THE MERGED COMPANY AS WELL IT WASN'T CLEAR HOW THE MERGER WOULD ADDRESS ISSUES OF MANAGEMENT CONTROL AND SUCCESSION IF VIACOM SUCCEEDS IN MAKING A HIGHER BID IT WOULD FORCE Q. V. C.'S MR. DILLER TO CONFRONT SIMILAR ISSUES OF HOW MUCH POWER HE WANTS TO GIVE UP TO OBTAIN INCREASED FINANCING FROM BELLSOUTH CORPORATION THE REGIONAL TELEPHONE COMPANY THAT IS BACKING HIS BID IT COULD ALSO ADD AT LEAST ANOTHER TWO WEEKS TO THE CONTEST WHICH BEGAN WHEN VIACOM AND PARAMOUNT ANNOUNCED A FRIENDLY EIGHT POINT TWO BILLION DOLLAR ACQUISITION AGREEMENT ON SEPTEMBER TWELFTH THAT'S BECAUSE EACH NEW BID MUST REMAIN OPEN FOR TEN ADDITIONAL BUSINESS DAYS A VIACOM BLOCKBUSTER MERGER WOULD BE THE LATEST IN A DIZZYING SUCCESSION OF ALLIANCES AMONG COMPANIES ACROSS THE MEDIA SPECTRUM ALL VYING FOR A STAKE IN PARAMOUNT THE ENTERTAINMENT AND PUBLISHING GIANT UNDER THE BIDDING RULES AGREED TO BY VIACOM AND Q. V. C. TWO WEEKS AGO IF FIFTY ONE PERCENT OF PARAMOUNT'S SHARES ARE TENDERED TO Q. V. C. TODAY UNDER ITS CURRENT BID OF EIGHTY ONE DOLLARS AND SEVENTY CENTS A SHARE AND IF VIACOM DOESN'T RAISE ITS BID Q. V. C. WOULD WIN AND VIACOM WOULD HAVE TO BOW OUT SHAREHOLDERS WHO HADN'T TENDERED THEIR SHARES TO Q. V. C. WOULD THEN HAVE TEN DAYS TO DO SO BLOCKBUSTER AGREED IN SEPTEMBER TO INVEST SIX HUNDRED MILLION DOLLARS IN VIACOM TO BOLSTER ITS BID TO BUY PARAMOUNT WHILE NYNEX CORPORATION INVESTED ONE POINT TWO BILLION DOLLARS IN VIACOM FACED WITH THE NEED TO COME UP WITH MORE CASH TO TOP Q. V. C.'S BID VIACOM WENT BACK TO BOTH INVESTORS LATE LAST MONTH REGIONAL TELEPHONE GIANT NYNEX FACED PRESSURES FROM CONSUMER GROUPS AND REGULATORS HOWEVER AND VIACOM'S TALKS WITH BLOCKBUSTER TOOK PRECEDENCE PEOPLE CLOSE TO THE SITUATION SAID TOP EXECUTIVES OF BLOCKBUSTER MET OVER SEVERAL DAYS THIS WEEK WITH VIACOM INITIALLY DISCUSSING A PLAN FOR BLOCKBUSTER TO INVEST MORE CASH TO BOOST VIACOM'S OFFER FOR PARAMOUNT PEOPLE FAMILIAR WITH THE SITUATION SAID THAT EARLY TALKS WITH VIACOM AND BLOCKBUSTER WERE FRAUGHT WITH DIFFICULTY OVER ISSUES OF VALUE AND CONTROL UNDER THE ORIGINAL AGREEMENT TO INVEST SIX HUNDRED MILLION DOLLARS IN VIACOM BLOCKBUSTER DIDN'T GET VOTING STOCK IN VIACOM BUT COLLECTED A BOARD SEAT AND PREFERRED STOCK WITH A FIVE PERCENT DIVIDEND THE STOCK IS CONVERTIBLE TO VIACOM NONVOTING CLASS B. SHARES AT SEVENTY DOLLARS A SHARE IN RECENT TALKS BLOCKBUSTER WAS SAID TO BE DEMANDING MORE FAVORABLE TERMS FROM VIACOM IN RETURN FOR A FURTHER CASH INVESTMENT THE DISCUSSION THEN TURNED TO A COMBINATION OF SOME OR ALL OF VIACOM'S AND BLOCKBUSTER'S BUSINESSES ONE PERSON FAMILIAR WITH BLOCKBUSTER SAID THAT BLOCKBUSTER'S MR. HUIZENGA HAD PRESSED FOR A COMBINATION OUT OF GROWING CONCERN FOR THE FUTURE OF BLOCKBUSTER'S OWN BUSINESS BLOCKBUSTER THE NATION'S LARGEST VIDEO CHAIN FACES INCREASING COMPETITION FROM CABLE T. V. PAY PER VIEW CHANNELS AND THE PROMISE OF MOVIES ON DEMAND FROM PHONE AND CABLE T. V. COMPANIES FOR THAT REASON BLOCKBUSTER HAS ALREADY INVESTED IN SMALLER ENTERTAINMENT PRODUCTION CONCERNS SUCH AS SPELLING ENTERTAINMENT DURING THE DAY TRADERS HEARD RUMORS THAT VIACOM'S NEXT MOVE MIGHT BE QUOTE BIGGER THAN YOU THINK QUOTE BUT WITHOUT ANY SPECIFICS ONLY AFTER THE STOCK MARKET CLOSED AT FOUR P. M. DID THE RUMORS ABOUT A POSSIBLE MERGER TAKE OFF THOUGH THE VIACOM CAMP HAS BEEN MUM ON ITS PLANS ALL WEEK TRADERS AND ENTERTAINMENT INDUSTRY EXECUTIVES SAY PEOPLE IN THE VIACOM CAMP HAVE BEEN BROADLY HINTING AT A DRAMATIC MOVE TO BE ANNOUNCED TODAY BLOCKBUSTER HAS ABOUT TWO HUNDRED TWENTY TWO POINT ONE MILLION SHARES OUTSTANDING VALUED AT ABOUT SIX POINT SIX BILLION DOLLARS AT YESTERDAY'S CLOSING PRICE OF TWENTY NINE POINT EIGHT SEVEN FIVE DOLLARS A SHARE ACCORDING TO THE VALUE LINE INVESTMENT SURVEY BLOCKBUSTER HAS TOTAL DEBT OF FOUR HUNDRED NINETY FIVE POINT THREE MILLION DOLLARS AND EXPECTED NINETEEN NINETY THREE REVENUES OF ABOUT TWO POINT ONE BILLION DOLLARS IN NINETEEN NINETY TWO IT REPORTED PROFITS OF ONE HUNDRED FORTY TWO MILLION DOLLARS OR SEVENTY SIX CENTS A SHARE ON REVENUE OF ONE POINT TWO BILLION DOLLARS BLOCKBUSTER LATE LAST MONTH TRIPLED ITS CREDIT AGREEMENT WITH A GROUP OF BANKS TO ONE BILLION DOLLARS THE SHARE PRICE OF THE FAST GROWING COMPANY HAS RISEN ABOUT THIRTY FOLD SINCE NINETEEN EIGHTY EIGHT BASED ON THE RAPID EXPANSION OF ITS CORE BUSINESS OF VIDEO RENTAL STORES WHICH NOW NUMBER MORE THAN THREE THOUSAND THE STOCK SHOWS LITTLE SIGN OF WEAKENING DESPITE THE THREATS TO ITS BUSINESS POSED BY NEW TECHNOLOGIES BLOCKBUSTER HAS A MUCH STRONGER BALANCE SHEET THAN VIACOM WHOSE STOCK MARKET VALUE IS FIVE POINT FOUR BILLION DOLLARS BUT WHICH HAS TWO POINT FIVE BILLION DOLLARS IN DEBT NOT INCLUDING THE ADDITIONAL THREE POINT SEVEN BILLION DOLLARS IN DEBT IT WILL ASSUME TO FINANCE ITS CURRENT OFFER FOR PARAMOUNT PROGRAM TRADING IN THE WEEK ENDED DECEMBER THIRTY FIRST ACCOUNTED FOR TEN POINT THREE PERCENT OR AN AVERAGE TWENTY POINT SEVEN MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL SEVEN 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 EIGHT PERCENT INVOLVED STOCK INDEX ARBITRAGE DOWN FROM THIRTY POINT TWO 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 ONE PERCENT OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE THIRTY NINE POINT SIX PERCENT WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL FIVE POINT THREE PERCENT WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOST ACTIVE FIRMS NOMURA SECURITIES AND GOLDMAN SACHS EXECUTED MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY BEAR STEARNS AND KIDDER PEABODY DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS AT A SUMMIT MEETING HERE NEXT WEEK THE NORTH ATLANTIC TREATY ORGANIZATION WILL PROVIDE ITS FIRST ANSWERS TO A STRATEGIC CONUNDRUM HOW TO ENSURE STABILITY IN EUROPE AT A TIME WHEN RUSSIA THE BIGGEST MILITARY POWER IN THE REGION IS BECOMING INCREASINGLY UNSTABLE THAT QUESTION ALREADY ONE OF THE MOST VEXING ISSUES OF THE POST COMMUNIST ERA HAS BEEN MADE MORE URGENT BY THE SUCCESS OF MILITANT NATIONALISTS IN RUSSIA'S RECENT PARLIAMENTARY ELECTIONS BUT NATO'S EXPECTED RESPONSE A U. S. INITIATED PLAN KNOWN AS QUOTE PARTNERSHIPS FOR PEACE QUOTE IS UPSETTING EAST EUROPEAN NATIONS WHO FEEL LET DOWN BY THE WEST JUST AS THE THREAT FROM THEIR HUGE EASTERN NEIGHBOR SEEMS TO BE ON THE RISE THE INITIATIVE ALSO IS CREATING MISGIVINGS IN WESTERN EUROPE PARTICULARLY IN GERMANY AND FRANCE WHICH ARE NONETHELESS PUBLICLY SUPPORTING IT THE PLAN SAYS AN AIDE TO FRENCH PRESIDENT FRANCOIS MITTERRAND IS A HALF MEASURE IMPOSED BY THE CIRCUMSTANCES THAT DOESN'T COMPLETELY SATISFY ANYONE ONE MAIN CAUSE FOR COMPLAINT IS THAT THE PROPOSAL RISKS CREATING THE IMPRESSION THAT RUSSIA FROM A POSITION OF WEAKNESS NOW IS DICTATING NATO POLICY IT AMOUNTS TO A SUPREME TWIST OF IRONY FOR AN ALLIANCE FOUNDED FOUR DECADES AGO TO PREVENT RUSSIA FROM IMPOSING ITS WILL FROM A POSITION OF MILITARY STRENGTH THIS APPEARANCE IS OF PARTICULAR CONCERN IN EUROPE WHERE GOVERNMENTS ALREADY ARE FACING A TEST OF THEIR CREDIBILITY OVER THEIR LACK OF DECISIVE ACTION TO RESOLVE THE CONFLICT IN BOSNIA U. S. OFFICIALS HOWEVER INSIST THAT THE PROPOSAL IS A REALISTIC INTERIM STEP THAT ULTIMATELY SHOULD SATISFY ALL SIDES THE INITIAL REACTION TO PARTNERSHIPS FOR PEACE MAY BE MIXED BEYOND THAT HOWEVER THE POPULARITY WILL JUMP TREMENDOUSLY AS COUNTRIES LEARN THAT IT WORKS FOR THEM ROBERT HUNTER THE U. S. AMBASSADOR TO NATO SAID IN AN INTERVIEW THE INITIATIVE WHILE CONFIRMING WASHINGTON'S PREOCCUPATION WITH RUSSIA TRIES TO BRIDGE THE SEEMINGLY IRRECONCILABLE POSITIONS OF MOSCOW AND ITS EAST EUROPEAN NEIGHBORS IT WOULD OPEN THE WESTERN ALLIANCE TO MILITARY COOPERATION WITH THE EAST TO AVOID PROVOKING MOSCOW HOWEVER NATO WOULD NOT GRANT SPECIFIC SECURITY GUARANTEES OR EXTEND ITS MEMBERSHIP TO EASTERN NATIONS ANY TIME SOON THAT COMES AS A DISAPPOINTMENT TO EAST EUROPEAN NATIONS WHICH HAVE SEEN MEMBERSHIP IN NATO AS THEIR BEST HOPE FOR ENSURING MILITARY STABILITY FOLLOWING THE COLLAPSE OF SOVIET COMMUNISM UNTIL RECENTLY THE WEST DID LITTLE TO DISCOURAGE THEIR