STRIDE RITE CORPORATION CITING CONTINUING START UP PROBLEMS AT ITS KEDS DISTRIBUTION CENTER SAID EARNINGS FELL FIFTY FOUR percent AND SALES WERE DOWN SIX point NINE percent IN THE FISCAL THIRD QUARTER ENDED SEPTEMBER SECOND THE SHOE COMPANY'S EARNINGS FELL TO EIGHT point FIVE MILLION DOLLARS OR SEVENTEEN CENTS A SHARE FROM EIGHTEEN point FOUR MILLION DOLLARS OR THIRTY SIX CENTS A SHARE A YEAR EARLIER SALES FELL TO ONE HUNDRED FIFTY FIVE MILLION DOLLARS FROM ONE HUNDRED SIXTY SIX point FIVE MILLION DOLLARS FOR THE FIRST NINE MONTHS EARNINGS FELL FIFTY NINE percent TO TWENTY ONE MILLION DOLLARS OR FORTY TWO CENTS A SHARE FROM FIFTY point NINE MILLION DOLLARS OR ONE DOLLAR A SHARE A YEAR EARLIER THE YEAR EARLIER EARNINGS INCLUDED A TWO MILLION DOLLAR CHARGE FROM A CHANGE IN ACCOUNTING FOR INCOME TAXES SALES SLUMPED SEVEN percent TO FOUR HUNDRED THIRTY EIGHT point SEVEN MILLION DOLLARS FROM FOUR HUNDRED SEVENTY ONE point EIGHT MILLION DOLLARS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY STRIDE RITE CLOSED AT FOURTEEN DOLLARS DOWN ONE point ONE TWO FIVE DOLLARS OR SEVEN point FOUR percent STRIDE RITE SAID ITS FINANCIAL RESULTS CONTINUE TO BE NEGATIVELY AFFECTED BY START UP PROBLEMS AT ITS NEW KEDS DISTRIBUTION CENTER IN KENTUCKY THE COMPANY SAID THE CENTER'S PERFORMANCE WAS IMPROVED COMPARED WITH ITS OPERATIONAL LEVEL IN THE SPRING BUT THAT ITS KEDS DIVISION'S SALES IN THE THIRD QUARTER WERE DOWN FOURTEEN percent THE SALES SHORTFALL WAS CAUSED PRIMARILY BY WEAK REORDER DEMAND FOR KEDS PRODUCTS DURING THE THIRD QUARTER STRIDE RITE ADDED THE KEDS DIVISION'S ORDER BACKLOG ALSO FELL FOUR percent STRIDE RITE SAID IT EXPECTS SALES FOR THE REMAINDER OF FISCAL NINETEEN NINETY FOUR TO BE BELOW YEAR EARLIER LEVELS BECAUSE OF THE PROBLEMS AT ITS KEDS DIVISION THE COMPANY ADDED THAT quote AT THIS POINT IN THE SPRING NINETEEN NINETY FIVE SALES CAMPAIGN CUSTOMER ORDERS ARE BELOW LAST YEAR'S LEVEL BUT EFFORTS TO IMPROVE OPERATIONS AT THE NEW DISTRIBUTION CENTER SHOULD HAVE A FAVORABLE IMPACT ON ORDER COMPLETION RATES IN THE FIRST HALF OF NINETEEN NINETY FIVE IN A MAJESTIC OLD ARENA NEAR LISBON EIGHT MEN LINE UP LIKE DOMINOES IN FRONT OF AN ENRAGED BULL WHEN THE ONE TON BEAST CHARGES THE FIRST MAN IN LINE TAKES THE BLOW FROM THE BULL'S FOREHEAD DIRECTLY IN THE CHEST THE OTHERS THEN WRESTLE THE BULL TO A STANDSTILL BUT SOMETIMES THE BULL WINS AND THE FORCADOS OR BULL CATCHERS GO FLYING LIKE POPPING POPCORN quote IN THE WORDS OF ONE SPECTATOR ALL THIS MAKES GREAT FOOTAGE FOR AMAZING GAMES A ONE HOUR TELEVISION SERIES THAT AIRS FIVE NEW SHOWS AND SCADS OF RERUNS A YEAR ON E. S. P. N. THE CABLE SPORTS CHANNEL NOW IN ITS FIFTH SEASON AMAZING GAMES COVERS THE PLANET'S LEAST KNOWN AND MOST BIZARRE CONTESTS FROM HUMAN CASTLE BUILDING FORTY PEOPLE STACKED EIGHT HIGH TO quote MOTO BALL IN THE SOVIET UNION SOCCER ON MOTORCYCLES TO FLORENTINE FOOTBALL IN WHICH THE ONLY RULE IS THAT YOU CANNOT KICK AN OPPONENT WHEN HE IS UNCONSCIOUS WHILE CHANNEL SURFING TWO YEARS AGO STEVEN WYATT CAUGHT A SEGMENT ON SKI RACES IN FINLAND IN WHICH THE SKIERS ARE PULLED BY GALLOPING REINDEER HE WAS INSTANTLY HOOKED I THOUGHT THIS IS AMAZING SAYS MR. WYATT AN OIL COMPANY CONSULTANT IN WASHINGTON D. C. THE SERIES IS A RARITY ON BASIC CABLE WHOSE NETWORKS HAVE ONLY RECENTLY BEEN ABLE TO REACH THE NUMBERS OF VIEWERS NECESSARY TO FINANCE ORIGINAL PROGRAMMING WITH HIGH PRODUCTION VALUES AMAZING GAMES quote COSTS ABOUT TWO HUNDRED FIFTY THOUSAND DOLLARS AN EPISODE WHICH IS ON THE HIGH SIDE FOR A CABLE PROGRAM IT'S EXPENSIVE BUT IT CAN BE WORTH IT SAYS LOREN MATTHEWS E. S. P. N.'S SENIOR VICE PRESIDENT OF PROGRAMMING E. S. P. N. WHICH IS EIGHTY percent OWNED BY CAPITAL CITIES slash A. B. C. INCORPORATED HAS THE WIDEST REACH OF ANY CABLE NETWORK WITH SIXTY TWO MILLION SUBSCRIBERS E. S. P. N. HOPES TO REPACKAGE AND RECYCLE AMAZING GAMES INDEFINITELY AFTER TWENTY SIX EPISODES IT'S A PRIME CANDIDATE FOR SYNDICATION E. S. P. N. SQUEEZES MORE MILEAGE OUT OF THE SEGMENTS BY EDITING THEM DOWN AND AIRING THEM ON quote MAX OUT AN EXTREME SPORTS PROGRAM AND EXTREMELY AMAZING AN M. T. V. LIKE SHOW WITH SCREAMING GUITARS AND SPECIAL EFFECTS BOTH THESE SHOWS APPEAR ON THE OFFSPRING NETWORK E. S. P. N. TWO WHICH IS GEARED TO YOUNG MEN ALSO ON TAP AMAZING GAMES quote ON C. D. ROM COMPLETE WITH MAPS AND TEXT AND A LINE OF HOME VIDEOS E. S. P. N. HAS EVEN THROWN THE SHOW UP AGAINST WHAT ONE E. S. P. N. STAFFER CALLS THE BLACK HOLE OF PROGRAMMING A. B. C.'S POPULAR MONDAY NIGHT FOOTBALL SURPRISINGLY THE SHOW CAPTURED A RESPECTABLE ONE point THREE RATING WHICH TRANSLATES TO EIGHT HUNDRED NINETEEN THOUSAND HOUSEHOLDS TINY BY BROADCAST STANDARDS BUT BIG CONSIDERING THE MAKEUP OF E. S. P. N.'S AUDIENCE quote AMAZING GAMES ISN'T FOR ALL SPORTS JUNKIES HOWEVER IN TERMS OF BEING A SUBSTITUTE FOR BASEBALL THIS ISN'T IT SAYS RICHARD NEER A SPORTS TALK SHOW HOST ON NEW YORK'S NERVY W. F. A. N. IT'S A CURIOSITY quote HOSTED BY FORMER OAKLAND RAIDERS' WIDE RECEIVER BOB CHANDLER AMAZING GAMES AMOUNTS TO AN ANTHROPOLOGICAL WIDE WORLD OF SPORTS FOCUSING AS MUCH ON LOCAL CULTURE AS FEATS OF DARING quote A LOT OF PEOPLE WON'T SIT AND WATCH AN HOUR LONG DOCUMENTARY ON INDONESIA SAYS CREATOR AND PRODUCER NICHOLAS STEIN WHILE WE'RE SHOWING THE GAMES PEOPLE PLAY IN INDONESIA THOUGH WE'RE ALSO TELLING THEM A LOT ABOUT THE COUNTRY PEOPLE AND CUSTOMS ON THE MEAN STREETS OF AN AFGHAN REFUGEE CAMP ON THE PAKISTANI BORDER FOR EXAMPLE WHIP TOTING AFGHANIS PASS AND STEAL A DEAD CALF AS THEY THUNDER THROUGH TOWN ON HORSEBACK THE CENTURIES OLD CONTEST IS CALLED BOUZKASHI AFTER A PLAYER NAMED MOHAMMED SWIPES THE CARCASS AND DROPS IT IN A WHITE CIRCLE A WINNING MOVE THE REFEREE BREAKS TRADITION AND REFUSES TO PROCLAIM HIM THE WINNER THE REASON IS SOON APPARENT AS THE CAMERA PANS TO A VEILED PAKISTANI WOMAN THE REFEREE TELLS MR. CHANDLER HE MOHAMMED MARRIED MY SISTER WITHOUT TELLING ME AND AGAINST MY WILL WORSE THAN THAT HE PAID MY FATHER HE PAID MY BROTHER BUT HE DIDN'T PAY ME quote SUCH EXOTICA HAS EVEN ATTRACTED ADVERTISERS THAT ARE NORMALLY T. V. SHY FORSCHNER GROUP INCORPORATED MARKETER OF THE ORIGINAL SWISS ARMY KNIFE BROKE A HALF CENTURY TRADITION SHUNNING TELEVISION ADVERTISING BY AIRING ITS FIRST NORTH AMERICAN TELEVISION COMMERCIALS DURING AMAZING GAMES LAST YEAR THE COMPANY IS SPONSORING THE SHOW AGAIN THIS SEASON THE SEGMENTS ARE SOMETIMES LESS THAN EDIFYING TWO YEARS AGO WHILE COVERING A TOURNAMENT OF GAMES INDIGENOUS TO RURAL CHINA MR. CHANDLER INADVERTENTLY TANGLED WITH A MONGOLIAN WRESTLER NAMED BATAR WHO HAD JUST WON A CAMEL IN A TOURNAMENT THAT STARTED WITH TWO HUNDRED SIXTY FOUR REGISTERED CONTENDERS BATAR WAS THE LAST MAN STANDING RECALLS MR. STEIN IN A POST GAME CHAT MR. CHANDLER JOKINGLY SAID TO BATAR quote THAT'S PRETTY GOOD BUT DO YOU THINK YOU COULD TAKE ME THE QUESTION LOST SOMETHING IN THE TRANSLATION FROM ENGLISH TO CHINESE TO MONGOLIAN BATAR TOOK IT AS A CHALLENGE AND WITHIN MINUTES HE HAD BOB ON HIS BACK WITH A CUT OVER HIS EYE ALL TO THE DELIGHT OF THE CROWD MR. STEIN SAYS THE FOOTAGE ISN'T ALWAYS FOUND IN EXOTIC LOCALES AMAZING GAMES quote TOOK ITS CAMERAS TO CALIFORNIA TO COVER JOGGLING IN WHICH A RUNNER RECENTLY CAME WITHIN TWO point FOUR FIVE SECONDS OF THE WORLD RECORD FOR THE ONE HUNDRED METER DASH WHILE JUGGLING THREE BALLS IT ALSO TOOK VIEWERS TO OMAK WASHINGTON FOR THE OMAK STAMPEDE AND SUICIDE RACE WHERE TWENTY MEN ON HORSEBACK SLIDE DOWN A TWO HUNDRED TWENTY FIVE FOOT NEAR VERTICAL DROP INTO A RUSHING RIVER MR. STEIN A FORMER PRODUCER OF NATIONAL GEOGRAPHIC SOCIETY T. V. DOCUMENTARIES STUMBLED ON THE CONCEPT FOR AMAZING GAMES IN NINETEEN EIGHTY SIX AFTER A COLLEAGUE CAME BACK FROM A NATIONAL GEOGRAPHIC SHOOT ON CHINA WATCHING FOOTAGE OF TIBETAN HORSEMEN PLAYING A GAME SIMILAR TO BOUZKASHI quote A LIGHT BULB WENT OFF MR. STEIN SAYS YOUR SEPTEMBER SIXTH PAGE ONE ARTICLE ON THE POSITIVE AND NEGATIVE ASPECTS OF H. M. O.S IN GENERAL AND U.SS HEALTHCARE INCORPORATED IN PARTICULAR WAS EXCELLENT I CHALLENGE DAVID F. SIMON'S STATEMENT THAT U. S. HEALTHCARE DOES NOT FACE A CONFLICT OF INTEREST IT DOES FACE A CONFLICT AND IT IS THE ONE BETWEEN ITS SHAREHOLDERS AND THE PATIENTS WHAT IS BEST FOR THE PATIENTS WHO SEEK CURE OR COMFORT IN THE FACE OF ILLNESS IS NOT NECESSARILY BEST FOR THE SHAREHOLDERS WHO WANT LOWER COSTS AND HIGHER PROFITS THE CONFLICT IS BETWEEN A MORAL INTEREST AND A FINANCIAL INTEREST FOR AGES THE PRIMARY AND ONLY RELATIONSHIP WAS THE ONE BETWEEN THE PROVIDER AND THE PATIENT THE PHYSICIAN ACTED IN THE BEST INTEREST OF THE PATIENT AND THE PATIENT PAID THE PHYSICIAN THE MORAL AND FINANCIAL INTEREST WERE THUS MERGED IN THIS SINGLE RELATIONSHIP OF ONLY TWO PARTIES INSURANCE COMPANIES THEN ENTERED THE SCENE TO SPREAD FINANCIAL RISK AMONG MANY PATIENTS THIS WAS WELCOMED BY EVERYONE BUT AS MODERN TECHNOLOGY AND POPULAR DEMAND DROVE UP COSTS BEYOND THE WILLINGNESS TO PAY FOR THEM INSURERS BEGAN TO EXERCISE CONTROL OVER MEDICAL DECISION MAKING OFTEN DENYING OR LIMITING REIMBURSEMENT FOR CARE FOR PROFIT H. M. O.S HAVE BEEN ESPECIALLY AGGRESSIVE IN INTERVENING IN THE PATIENT slash PHYSICIAN RELATIONSHIP NOT ALL H. M. O. ACTIVITIES ARE BAD NOR SHOULD WE ELIMINATE THE CONCEPT OF INSURANCE BUT IT SERVES NO PURPOSE TO DENY THE BASIC ETHICAL CONFLICT THAT EXISTS BETWEEN SERVING THE NEEDS OF THE PATIENTS AND THE DEMANDS OF THE SHAREHOLDERS WE NEED TO ELEVATE THIS DISCUSSION TO THE HIGHEST ETHICAL LEVEL TO ACKNOWLEDGE OUR OWN VESTED INTERESTS AND TO DEVELOP A HEALTH CARE SYSTEM THAT UNEQUIVOCALLY PUTS THE PATIENT FIRST IN RESPONSE TO ELIZABETH MCCAUGHEY'S SEPTEMBER SIXTEENTH EDITORIAL PAGE ARTICLE A BLUE GETS THE BLUES ABOUT LOSSES AT EMPIRE BLUE CROSS AND BLUE SHIELD MS. MCCAUGHEY STATES THE STATE PERMITTED EMPIRE TO DO BUSINESS IN THE LARGE GROUP MARKET FOR THE EXPLICIT PURPOSE OF MAKING PROFITS TO SUBSIDIZE EMPIRE'S COMMUNITY RATED INSURANCE AND KEEP RATES FOR INDIVIDUALS LOW quote THE PREMISE OF THIS ACTION BY THE STATE WAS FLAWED IN MANAGED CARE ONE GENERALLY EXPECTS LARGER EMPLOYER GROUPS TO NEGOTIATE MORE FORCEFULLY AND TO GET BETTER RATES FOR THEIR GIVEN EMPLOYEE MIX AND RISK STATUS INDUSTRY TYPE EXPERIENCE WHILE SOME MANAGED CARE ORGANIZATIONS HAVE DONE VERY WELL SERVING PRIMARILY LARGE EMPLOYERS E. G. HEALTH NET IN CALIFORNIA THE GENERAL RULE IS THAT LARGE GROUPS ARE THE LEAST PROFITABLE MEDIUM SIZED GROUPS ARE MODERATELY PROFITABLE AND SMALL GROUPS ARE MOST PROFITABLE SMALL GROUPS ARE PROFITABLE BECAUSE THE RATES QUOTED ARE HIGH TO COMPENSATE FOR ADVERSE SELECTION AND SINCE ONLY SOME SMALL GROUPS HAVE ADVERSE CASES SOME OTHERS ARE HIGHLY PROFITABLE WHEN LINCOLN NATIONAL SOLD ITS MANAGED CARE BUSINESS SEVERAL YEARS AGO IT RETAINED THE GROUPS WITH UNDER FIFTY LIVES IN SHORT IT APPEARS THAT BY NEW YORK STATE'S ACTION EMPIRE BLUE CROSS AND BLUE SHIELD PRODUCED JUST WHAT ONE WOULD EXPECT LOWER RETURN ON THE LARGE GROUP CASES AND HIGHER RETURN ON THE COMMUNITY RATED BUSINESS THE SURPRISE IS THAT THE STATE DID NOT KNOW WHAT WAS MOST LIKELY NOT THAT THE LIKELY HAPPENED HOECHST CELANESE CORPORATION THE LARGEST OPERATING SUBSIDIARY OF HOECHST A. G. OF GERMANY NAMED GUENTER METZ CHAIRMAN AS PART OF SEVERAL MANAGEMENT CHANGES AT THE UNIT MR. METZ SUCCEEDS ERNEST H. DREW WHO HAS BEEN CHAIRMAN OF THE UNIT SINCE MAY MR. DREW BECOMES A MEMBER OF THE PARENT COMPANY'S BOARD OF MANAGEMENT EFFECTIVE JANUARY TENTH THE COMPANY DID NOT SAY WHY MR. DREW'S RESPONSIBILITIES WERE CHANGED SO SOON AFTER HE TOOK OVER AS CHAIRMAN MR. METZ THE COMPANY SAID IS ALSO VICE CHAIRMAN OF THE BOARD OF MANAGEMENT FOR HOECHST A. G. AND WILL CONTINUE TO HAVE RESPONSIBILITY FOR HOECHST'S NORTH AND SOUTH AMERICAN OPERATIONS HIS CHAIRMANSHIP POSITION TAKES EFFECT JANUARY FIRST AS PART OF THE MANAGEMENT REALIGNMENT KARL G. ENGELS FIFTY ONE YEARS OLD WILL SUCCEED MR. DREW AS CHIEF EXECUTIVE OF HOECHST CELANESE AND CONTINUE WITH HIS CURRENT DUTIES AS PRESIDENT JOSEPH H. PATTERSON FIFTY FIVE DEPUTY CHAIRMAN OF THE UNIT WILL RETIRE AT THE END OF THE YEAR THERE ARE NO PLANS TO APPOINT A NEW DEPUTY CHAIRMAN A SPOKESWOMAN SAID THOMAS F. KENNEDY FIFTY TWO EXECUTIVE VICE PRESIDENT WILL TAKE ON ADDITIONAL RESPONSIBILITIES FOR THE PARENT COMPANY'S WORLDWIDE BASIC CHEMICALS BUSINESS MR. KENNEDY SUCCEEDS DIETER POETZSCH WHO PLANS TO RETIRE AT THE END OF THE YEAR IN ADDITION JEAN FRANCOIS LABBE GENERAL MANAGER OF ROUSSEL LABORATORIES LIMITED BECOMES PRESIDENT OF HOECHST CELANESE'S HOECHST ROUSSEL PHARMACEUTICALS INCORPORATED UNIT EFFECTIVE JANUARY FIRST MR. LABBE SUCCEEDS JACK HERDKLOTZ FIFTY ONE WHO RETIRES AT THE END OF THE YEAR IN ADDITION MR. LABBE WILL OVERSEE ALL NORTH AMERICAN PHARMACEUTICAL OPERATIONS FOR THE PARENT COMPANY AND ITS SUBSIDIARIES THE COMPANY ADDED U. S. WIRELESS DATA INCORPORATED EXPECTS TO REPORT A NET LOSS OF ONE point TWO MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ENDED JUNE THIRTIETH ALAN B. ROBERTS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN THE YEAR EARLIER PERIOD THE BOULDER COLORADO MAKER OF WIRELESS PORTABLE CREDIT CARD TERMINALS HAD A LOSS OF THREE HUNDRED FOUR THOUSAND THREE HUNDRED DOLLARS OR SIXTEEN CENTS A SHARE THE PER SHARE RESULTS REFLECT THAT SHARES OUTSTANDING MORE THAN DOUBLED TO THREE MILLION SIX HUNDRED EIGHTY FIVE THOUSAND NINE HUNDRED TEN FROM ONE MILLION SIX HUNDRED FORTY TWO THOUSAND EIGHT HUNDRED SIXTEEN REVENUE WAS ABOUT TWO HUNDRED THOUSAND DOLLARS FOR THE QUARTER UP FROM FOUR THOUSAND EIGHT HUNDRED SIXTY THREE DOLLARS A YEAR EARLIER MR. ROBERTS SAID FOR THE YEAR U. S. WIRELESS EXPECTS TO REPORT A LOSS OF ABOUT TWO point SEVEN MILLION DOLLARS OR NINETY FIVE CENTS A SHARE COMPARED WITH A LOSS OF EIGHT HUNDRED THIRTY THOUSAND DOLLARS OR FIFTY CENTS A SHARE IN THE PREVIOUS YEAR THE COMPANY EXPECTS TO REPORT REVENUE JUMPED TO TWO HUNDRED THIRTY THOUSAND DOLLARS FROM EIGHT THOUSAND FOUR HUNDRED THIRTY FOUR DOLLARS U. S. WIRELESS PLANS TO POST RESULTS EARLY THIS WEEK BIG IS BEAUTIFUL IN THE CONSTRUCTION INDUSTRY ARGUES GERMANY'S HOCHTIEF A. G. EXPLAINING WHY IT IS SEEKING TO BOOST ITS SHAREHOLDING IN ITS BIGGER RIVAL PHILIPP HOLZMANN A. G. THE ARGUMENT WINS SUPPORT FROM INDUSTRY EXPERTS CONSTRUCTION GIANTS CAN OFFER FINANCIAL MUSCLE AS WELL AS TECHNICAL PROWESS AND THAT OFTEN GIVES THEM THE COMPETITIVE EDGE WITH MULTI INTERNATIONAL CONTRACTS OFTEN THE DIFFERENCE BETWEEN GETTING THE CONTRACTS AND NOT GETTING THEM IS THE ABILITY OF THE COMPANY TO OFFER FAVORABLE FINANCING SAID BRIAN WILKINSON A GERMAN ANALYST WITH JAMES CAPEL and COMPANY IN LONDON BUT HOLZMANN ITSELF PROVIDES THE COUNTER ARGUMENT IN ITS EFFORTS TO GAIN INTERNATIONAL MARKET SHARE HOLZMANN GERMANY'S BIGGEST CONSTRUCTION COMPANY HAS MADE SOME DISASTROUS ACQUISITIONS PARTICULARLY IN FRANCE THAT HAVE LEFT IT VULNERABLE quote I DON'T KNOW OF ANY OTHER GERMAN COMPANY THAT'S HAD SO MUCH BAD LUCK WITH ACQUISITIONS SAID MANFRED PIONTKE AN INDUSTRY ANALYST WITH BANK JULIUS BAER DEUTSCHLAND GMBH IN FRANKFURT ONE OF THE KEY UNANSWERED QUESTIONS ABOUT HOCHTIEF'S MOVE ON HOLZMANN INDUSTRY ANALYSTS SAID IS WHETHER HOCHTIEF CAN AVOID THE SAME MISTAKES SHOULD IT GAIN A SAY IN HOLZMANN'S AFFAIRS OR WILL HOLZMANN'S TROUBLES RUB OFF ONTO HOCHTIEF'S BALANCE SHEET WHICH FOR NOW AT LEAST IS A LOT HEALTHIER THAN THAT OF ITS RIVAL IN SEPTEMBER HOCHTIEF ANNOUNCED PLANS TO INCREASE ITS STAKE IN HOLZMANN TO THIRTY percent FROM TWENTY percent AND TO HAVE A SEAT ON THE SUPERVISORY BOARD IT EVENTUALLY WANTS TO HOLD THE MAJORITY OF VOTES PRESENT AT SHAREHOLDER MEETINGS WHICH IMPLIES A STAKE OF BETWEEN THIRTY FIVE percent AND FORTY percent ACCORDING TO GERMAN REPORTS WHICH THE COMPANY DOESN'T DENY HOLZMANN HAS SAID THAT WHILE IT'S WILLING TO WORK TOGETHER IT WANTS TO REMAIN INDEPENDENT WERE THEY TO MERGE THE CONCERNS COULD BECOME THE WORLD'S ELEVENTH LARGEST CONSTRUCTION COMPANY WHATEVER THE OUTCOME SOME OBSERVERS PREDICT GREATER HOCHTIEF CONTROL WILL MEAN A MANAGEMENT SHAKE UP IN AN ATTEMPT TO BOOST HOLZMANN PROFITS HOLZMANN HAS BEEN SEVERELY HURT BY ITS OWN DISASTROUS EXPANSION STRATEGY ESPECIALLY ITS ACQUISITION IN NINETEEN EIGHTY NINE OF NORD FRANCE S. A. MR. PIONTKE THE BANK JULIUS BAER ANALYST ESTIMATES THAT THE SUBSIDIARY HAS DRAINED ABOUT FIVE HUNDRED MILLION MARKS THREE HUNDRED TWENTY THREE point TWO MILLION DOLLARS FROM HOLZMANN'S BALANCE SHEET EARLIER THIS YEAR NORD FRANCE'S PREVIOUS OWNERS AGREED TO PAY BACK ABOUT NINETY MILLION FRANCS SEVENTEEN point ONE MILLION DOLLARS FOLLOWING A DISPUTE OVER THE COMPANY'S VALUATION A SECOND CONSIDERATION WAS THAT NORD FRANCE HADN'T TURNED IN THE RESULT THAT HAD BEEN GUARANTEED WHEN HOLZMANN TOOK A MAJORITY STAKE IN NINETEEN NINETY TWO THE FRENCH COMPANY IS EXPECTED TO SHOW AN OPERATING PROFIT THIS YEAR BUT ITS MAY STILL BE IN THE RED A HOLZMANN SPOKESMAN SAID HOLZMANN'S PROBLEMS EXTEND TO ITS GERMAN SUBSIDIARIES WINDOW MANUFACTURER ZENKER FENSTER GMBH and COMPANY WAS IN THE RED LAST YEAR DESPITE BOOMING DEMAND FOR NEW HOMES SCHEU and WIRTH A. G. WHERE RESTRUCTURING EFFORTS BEGAN IN NINETEEN NINETY ALSO LOST MONEY THE STEEL CONSTRUCTION UNIT STAHLBAU LAVIS OFFENBACH ACQUIRED IN NINETEEN NINETY IS EXPECTED TO LOSE MONEY AGAIN THIS YEAR LUMBERED BY SUCH INTERNAL PROBLEMS HOLZMANN HAS PROVED TO BE FAR LESS NIMBLE THAN HOCHTIEF THE SECOND LARGEST GERMAN CONSTRUCTION COMPANY WHEN CHASING INTERNATIONAL BUSINESS HOLZMANN HAS SNARED PLUMS SUCH AS A MALAYSIAN SKYSCRAPER THAT IS TO BE THE WORLD'S TALLEST HOWEVER ITS FOREIGN ORDERS HAVE ACTUALLY DECLINED IN THE PAST FIVE YEARS BUT HOCHTIEF'S FOREIGN ORDERS HAVE MULTIPLIED IN THE PAST FIVE YEARS AND THE COMPANY HAS CREATED A NAME FOR ITSELF IN AREAS SUCH AS AIRPORT CONSTRUCTION INDUSTRY ANALYSTS SAID THAT'S NOT THE ONLY REASON HOCHTIEF HAS THE STRONGER BOTTOM LINE THEY UNANIMOUSLY RATE ITS MANAGEMENT AS THE BETTER OF THE TWO ALTHOUGH SOME FIND IT DIFFICULT TO PIN POINT DIFFERENCES HOCHTIEF'S MANAGEMENT APPEARS TO WORK MORE PROFESSIONALLY SAID MARC RODE OF D. B. RESEARCH GMBH ANOTHER POSSIBLE SOURCE OF STRENGTH MAY BE THE PROFITS EARNED IN THE EARLY NINETEEN EIGHTIES FROM DOLLAR RICH MIDDLE EASTERN OIL PRODUCERS HOCHTIEF HAD THE FORESIGHT OR THE LUCK TO EXIT THE MARKET BEFORE THE COLLAPSE OF THE DOLLAR TOOK ITS TOLL PROFITABILITY ASIDE ANALYSTS SAY THE TWO COMPANIES DO SEEM TO COMPLEMENT EACH OTHER WELL HOLZMANN FOR EXAMPLE IS THE STRONGER PLAYER IN THE U. S. WHILE HOCHTIEF LEADS IN AUSTRALIA NONETHELESS THE DECISION TO COMBINE THE EFFORTS OF THE TWO GERMAN COMPANIES HOWEVER CONTRASTS WITH BILFINGER plus BERGER A. G. WHICH DOES A HIGHER PERCENTAGE OF WORK OUTSIDE GERMANY DESPITE ITS STATUS AS NUMBER THREE THAT COMPANY HAS MOVED TO ACQUIRE EXPERIENCED LOCAL COMPANIES IN KEY REGIONAL MARKETS INCLUDING FRU CON HOLDING CORPORATION OF SAINT LOUIS HOLZMANN AND HOCHTIEF INCREASINGLY NEED TO INCREASE THEIR EXPORT SHARE ANALYSTS SAID ARGUING THAT THE BOOM MARKETS OF THE FUTURE LIE IN SOUTHEAST ASIA AND CHINA NOT IN EASTERN GERMANY COMPARED WITH U. S. CONSTRUCTION COMPANIES WHICH DOMINATE THE INTERNATIONAL RANKINGS THE TWO GERMAN FIRMS SEEM PUNY OUTSIDE THEIR HOME COUNTRY FOREIGN BUSINESS ACCOUNTS FOR ABOUT ONE THIRD OF HOLZMANN'S REVENUE WHICH TOTALED TWELVE point FIVE BILLION MARKS IN NINETEEN NINETY THREE COMPARED WITH ABOUT ONE QUARTER AT HOCHTIEF'S SALES OF EIGHT BILLION MARKS THE U. S. BASED BECHTEL GROUP THE WORLD'S LARGEST CONSTRUCTION COMPANY DOES SIXTY FOUR percent OF ITS WORK OUTSIDE ITS DOMESTIC MARKET THE FIGURES ALSO PALE IN COMPARISON TO THE FORTY percent TO FIFTY percent OF FOREIGN SALES ACHIEVED BY BILFINGER plus BERGER IT'S OVERSEAS THAT SIZE MATTERS ANALYSTS SAID INFRASTRUCTURE PROJECTS AN AREA OF GERMAN STRENGTH INCREASINGLY ARE BEING BUILT AND OPERATED BY THE BUILDERS AND THEN TRANSFERED TO THE GOVERNMENT BEING ABLE TO PROVIDE FINANCING IS OFTEN THE KEY AS HOCHTIEF SHOWED WHEN IT SECURED A THREE HUNDRED MILLION MARK CONTRACT TO BUILD WARSAW'S NEW AIRPORT RECENTLY IT BROUGHT IN THE FRANKFURT SUBSIDIARY OF CITIBANK TO HANDLE THE FINANCING AND THE BANK ACCEPTED FEES FROM AIRPORT USE AND OVERFLIGHT RIGHTS AS COLLATERAL FOR THE LOAN THE COMPANY'S SUCCESS WITH THAT PROJECT IN TURN HELPED IT IN BIDDING FOR THE NEW ATHENS AIRPORT WHERE THE ORIGINAL CONTRACT GRANTED TO HOCHTIEF IS BEING REVIEWED BY THE NEW GOVERNMENT AND IN LANDING A SIX HUNDRED MILLION MARK CONTRACT TO REBUILD THE SHATTERED BEIRUT AIRPORT TWO MONTHS AGO AS IT IS THE TWO COMPANIES SUPPOSEDLY RIVALS SOMETIMES WORK TOGETHER ALREADY TAKE THE CASE OF D. G. IMMOBILIEN MANAGEMENT GMBH A REAL ESTATE SUBSIDIARY OF DEUTSCHE GENOSSENSCHAFTSBANK A. G. A FEW YEARS AGO IT SELECTED THE GENERAL CONTRACTOR FOR EUROPE'S THIRD HIGHEST OFFICE BUILDING TO BE BUILT IN FRANKFURT THE FIELD WAS NARROWED TO HOCHTIEF AND HOLZMANN SAID WOLFGANG OTT THE PROJECT MANAGER HOCHTIEF WHICH HAD JUST FINISHED BUILDING THE NEARBY MESSETURM A PYRAMID TOPPED TOWER FOR FRANKFURT'S TRADE FAIR GROUNDS WHICH IS ALSO THE CONTINENT'S TALLEST OFFICE BUILDING WALKED AWAY WITH THE CONTRACT ESTIMATED AT BETWEEN TWO HUNDRED FIFTY MILLION MARKS AND THREE HUNDRED MILLION MARKS THERE WAS A CONSIDERABLE PRICE DIFFERENCE quote BETWEEN THE TWO BIDS MR. OTT SAID AFTER THE SKYSCRAPER WAS COMPLETED THE REAL ESTATE COMPANY SOUGHT BIDS FOR A SIXTY MILLION SEVENTY MILLION MARK PROJECT THAT MIXED OFFICE SPACE AND APARTMENTS FRANKFURT CONSTRUCTION COMPANIES WERE BETTING THAT HOCHTIEF WOULD AGAIN GET THE NOD APPARENTLY HOLZMANN AGREED IT JOINED FORCES WITH HOCHTIEF AND PRESENTED A JOINT BID MUCH TO THE IRRITATION OF D. G. IMMOBILIEN WHICH SOUGHT GREATER COMPETITION IT CAN NEVER BE IN THE INTEREST OF THE INVESTOR WHEN COMPANIES COOPERATE WITH EACH OTHER MR. OTT SAID THE U. S. MAY BE UNABLE TO CHECK PROTECTIONIST MOVES BY DEVELOPING COUNTRIES IF THE SENATE DOESN'T QUICKLY RATIFY THE BIODIVERSITY TREATY A SENIOR CLINTON ADMINISTRATION OFFICIAL SAID TIM WIRTH UNDERSECRETARY OF STATE FOR GLOBAL AFFAIRS TOLD REPORTERS THAT INACTION BY THE SENATE ON THE INTERNATIONAL SPECIES PROTECTION TREATY WOULD KEEP THE U. S. FROM PARTICIPATING IN A CRUCIAL MEETING OF THE TREATY'S SIGNATORIES SET FOR NOVEMBER AT THE MEETING MR. WIRTH SAID DEVELOPING NATIONS ARE EXPECTED TO ADVOCATE VERY PROTECTIONIST PROTOCOLS THAT COULD LIMIT U. S. ACCESS TO MATERIALS USED TO DEVELOP NEW VARIETIES OF CROPS AND BIOTECHNICALLY DERIVED PHARMACEUTICALS THAT COULD HURT U. S. EXPORTS OF BIOTECH PRODUCTS HE WARNED quote IF WE HAVE NOT RATIFIED THE TREATY WE'RE NOT SITTING AT THE TABLE MR. WIRTH SAID ALTHOUGH THE U. S. COULD STILL ATTEND THE NOVEMBER MEETING AS AN OBSERVER HE SAID IT WOULD HAVE CONSIDERABLY LESS INFLUENCE ON THE OUTCOME THE BIODIVERSITY TREATY A PRODUCT OF THE NINETEEN NINETY TWO EARTH SUMMIT IS AIMED AT PROTECTING PLANT AND ANIMAL SPECIES AROUND THE WORLD OF PARTICULAR INTEREST TO U. S. COMPANIES ARE RARE PLANT SPECIES IN TROPICAL CLIMATES THAT MAY HAVE MEDICINAL AGRICULTURAL OR INDUSTRIAL VALUE PRESIDENT BUSH REFUSED TO SIGN THE TREATY ON THE GROUND THAT IT WOULD UNDERMINE U. S. BIOTECH PATENT RIGHTS BUT PRESIDENT CLINTON AGREED TO SIGN IT AFTER DRAWING UP INTERPRETIVE LANGUAGE THAT THE ADMINISTRATION SAYS WILL PROTECT U. S. PATENTS THE TREATY GENERATED LITTLE CONTROVERSY WHEN IT CAME BEFORE THE SENATE FOREIGN RELATIONS COMMITTEE BUT THE CATTLEMEN'S ASSOCIATION A TRADE GROUP REPRESENTING U. S. RANCHERS HAS OPPOSED IT ON THE GROUNDS THAT IT WOULD INHIBIT EFFORTS IN THE U. S. TO SCALE BACK THE ENDANGERED SPECIES ACT SENATE REPUBLICANS INCLUDING MINORITY LEADER BOB DOLE OF KANSAS HAVE SEIZED ON THIS OPPOSITION TO BLOCK RATIFICATION ON THE SENATE FLOOR MR. WIRTH SAID THE TREATY WOULD HAVE NO EFFECT ON ANY EFFORTS TO REVISE THE ENDANGERED SPECIES LAW GERALD CZARNECKI THE FORMER HUMAN RELATIONS CHIEF AT INTERNATIONAL BUSINESS MACHINES CORPORATION WHO RESIGNED ABRUPTLY IN APRIL WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF U. N. C. INCORPORATED A JET ENGINE MANUFACTURER MR. CZARNECKI FIFTY FOUR REPORTS TO THE CHAIRMAN AND IS RESPONSIBLE FOR U. N. C.'S LINE OPERATIONS AS WELL AS THE MARKETING CONTROLLER AND HUMAN RESOURCES DEPARTMENTS U. N. C. LAST YEAR HAD FOUR HUNDRED THIRTY EIGHT MILLION DOLLARS IN SALES AT I. B. M. MR. CZARNECKI WAS A SENIOR VICE PRESIDENT RESPONSIBLE FOR CREATING NEW PERSONNEL POLICIES AND OVERSEEING THE TRIMMING OF THIRTY FIVE THOUSAND EMPLOYEES FROM I. B. M.'S WORK FORCE AT THE TIME HE RESIGNED MR. CZARNECKI SAID HE WANTED TO RUN HIS OWN COMPANY BUT INDUSTRY EXECUTIVES SAID THAT LOUIS V. GERSTNER JUNIOR I. B. M.'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER FELT THE PACE OF I. B. M.'S CULTURE CHANGE WAS TOO SLOW UNDER MR. CZARNECKI SEPARATELY HANS OLAF HENKEL WHO RECENTLY LEFT HIS JOB AS PRESIDENT OF I. B. M. EUROPE IS IN LINE TO BECOME PRESIDENT OF THE GERMAN INDUSTRY FEDERATION THE FIFTY FOUR YEAR OLD EXECUTIVE WAS UNANIMOUSLY NOMINATED FOR THE FEDERATION'S TOP JOB BY ITS SENIOR OFFICERS THE GROUP GATHERS DATA AND LOBBIES ON BEHALF OF BIG GERMAN COMPANIES MR. HENKEL LEFT HIS POST AS I. B. M. EUROPE PRESIDENT LAST MONTH AND IS EXPECTED TO RELINQUISH HIS SECOND TITLE AS I. B. M. EUROPE CHAIRMAN LATER THIS YEAR AT THE TIME AN INDIVIDUAL FAMILIAR WITH THE SITUATION SAID MR. HENKEL WAS FORCED OUT FOLLOWING A POLICY CLASH WITH MR. GERSTNER MR. HENKEL DENIES HE DISAGREED WITH MR. GERSTNER AND SAYS HE LEFT VOLUNTARILY BECAUSE HE WANTED TO TAKE ADVANTAGE OF NEW CAREER OPPORTUNITIES IN HIS NATIVE GERMANY SPORTING GOODS MAKER VARIFLEX INCORPORATED SAID IT PLANS TO INTRODUCE A LINE OF STREET HOCKEY SKATES THIS HOLIDAY SEASON AND WILL REPORT THAT EARNINGS ROUGHLY DOUBLED IN THE FISCAL FOURTH QUARTER ENDED JULY THIRTY FIRST NET INCOME WAS BETWEEN ONE point SEVEN MILLION DOLLARS AND ONE point NINE MILLION DOLLARS OR BETWEEN THIRTY FOUR CENTS A SHARE AND THIRTY NINE CENTS A SHARE SAID WILLIAM B. OGDEN CHIEF FINANCIAL OFFICER THE EARNINGS REPORT EXPECTED EARLY THIS WEEK WILL BE THE FIRST FROM VARIFLEX SINCE IT COMPLETED ITS INITIAL PUBLIC OFFERING IN JUNE THE COMPANY SOLD TWO MILLION COMMON SHARES AT FIFTEEN DOLLARS AND FIFTY CENTS EACH IN THE YEAR EARLIER FOURTH QUARTER VARIFLEX EARNED NINE HUNDRED THOUSAND DOLLARS OR NINETEEN CENTS A SHARE REVENUE IN THE LATEST QUARTER IS ESTIMATED AT TWENTY FOUR MILLION DOLLARS A SEVENTY EIGHT percent JUMP FROM THE THIRTEEN point FIVE MILLION DOLLARS A YEAR EARLIER WE'VE HAD REVENUE AND PROFIT INCREASES IN OUR MAJOR PRODUCTS IN LINE SKATES AND PROTECTIVE EQUIPMENT SAID RAYMOND LOSI THE SECOND PRESIDENT AND CHIEF OPERATING OFFICER OUR BICYCLE SAFETY HELMET LINE INTRODUCED IN SEPTEMBER HAS BEEN WELL RECEIVED quote VARIFLEX ALSO MAKES SKATEBOARDS AND TRADITIONAL ROLLER SKATES MR. LOSI SAID THAT TWO OF THE COMPANY'S LARGEST CUSTOMERS DAYTON HUDSON CORPORATION'S TARGET AND TOYS R. US ARE SELLING THE NEW HELMETS WE HAVEN'T GIVEN UP ON PLACING THE HELMETS IN STORES OF A THIRD MAJOR CUSTOMER KMART CORPORATION WHICH IS CURRENTLY CARRYING HELMETS MADE BY VARIFLEX COMPETITORS MR. LOSI SAID FOR FISCAL NINETEEN NINETY FOUR VARIFLEX EXPECTS TO POST NET INCOME OF BETWEEN SIX point FOUR MILLION DOLLARS AND SIX point SIX MILLION DOLLARS OR BETWEEN ONE DOLLAR AND THIRTY SIX CENTS A SHARE AND ONE DOLLAR AND FORTY ONE CENTS A SHARE A YEAR EARLIER NET WAS TWO point EIGHT MILLION DOLLARS OR SIXTY ONE CENTS A SHARE THE COMPANY ESTIMATES SALES CLIMBED ABOUT THIRTY ONE percent TO EIGHTY MILLION DOLLARS FROM SIXTY ONE point ONE MILLION DOLLARS THE HOUSE APPROVED A TRIMMED DOWN BILL DESIGNED TO GIVE THE U. S. LEVERAGE TO OPEN FOREIGN BANKING MARKETS THE BILL PASSED ON A VOICE VOTE WOULD LET U. S. REGULATORY AGENCIES DENY FOREIGN BANKS ENTRY INTO THE U. S. IF THEIR HOME COUNTRIES ARE FOUND TO LIMIT ACCESS OF U. S. BANKS TO THEIR NATIONAL MARKETS FOR THIS TO HAPPEN THE TREASURY SECRETARY WOULD HAVE TO DETERMINE THAT THE FOREIGN COUNTRIES' DENIAL HAS HAD A quote SIGNIFICANT ADVERSE EFFECT ON THE U. S. BANKS REPRESENTATIVE CHARLES SCHUMER D. N. Y. WHO SPONSORED THE BILL ALONG WITH REPRESENTATIVE JIM LEACH R. IOWA SAID THIS IS DESIGNED TO OPEN UP FOREIGN MARKETS NOT CLOSE AMERICAN MARKETS TO FOREIGN FIRMS THE BILL IS A COMMON SENSE ABOUTTIME REVERSAL OF THE UNITED STATES' ALL TOO OFTEN ROLE OF BEING A PATSY OF THE INTERNATIONAL FINANCIAL MARKETS quote SAID REPRESENTATIVE HENRY GONZALEZ D. TEXAS THE HOUSE BANKING COMMITTEE CHAIRMAN WITH LITTLE TIME REMAINING IN THIS LEGISLATIVE SESSION THE SENATE MAY NOT BE ABLE TO TAKE UP THE BANKING TRADE MEASURE NO HEARINGS HAVE BEEN SCHEDULED ON THE BILL THE HOUSE BILL TITLED THE NATIONAL TREATMENT BANKING ACT IS A NARROWER VERSION OF LEGISLATION THAT FOUNDERED IN A HOUSE SENATE CONFERENCE BECAUSE OF TURF DISPUTES BETWEEN THE HOUSE BANKING WAYS AND MEANS AND COMMERCE COMMITTEES THE EARLIER BILL WOULD HAVE COVERED THE INSURANCE AND SECURITIES INDUSTRIES AS WELL AS BANKING A FEATURE THAT LED TO THE JURISDICTIONAL DISPUTES IN CONGRESS THE BILL IS TARGETED MOSTLY AT COUNTRIES IN ASIA AND LATIN AMERICA THAT DIDN'T AGREE TO TERMS ON FINANCIAL SERVICES IN TALKS ON THE GENERAL AGREEMENT ON TARIFFS AND TRADE U. S. FORCES DETAINED FIVE PARAMILITARY LEADERS INCLUDING A CEDRAS ADVISER U. S. SOLDIERS ALSO RAIDED SEVEN REPORTED ARMS CACHES FOLLOWING ATTACKS FRIDAY ON DEMONSTRATORS SUPPORTING OUSTED PRESIDENT ARISTIDE ARMS WERE FOUND AT ONLY ONE SITE SATURDAY BUT SEARCHES CONTINUED SUNDAY THE PRO ARISTIDE FORCES SCORED A POLITICAL AND TACTICAL VICTORY BY KEEPING DEMONSTRATIONS LARGELY PEACEFUL BECAUSE THEIR RELATIVE RESTRAINT BOOSTS PRESSURE ON THE U. S. TO CRACK DOWN ON MEMBERS OF PARAMILITARY GROUPS THAT ATTACKED THE UNARMED CIVILIANS KILLING SEVERAL SOME ANALYSTS BELIEVE THAT IN THE CURRENT POLITICAL VACUUM THE PARAMILITARIES COULD GAIN POPULARITY AMONG HAITI'S BUSINESS ELITE WHO FEAR LOOTING MEXICO'S ATTORNEY GENERAL SAID ONE OF THE CONFESSED ACCOMPLICES IN LAST WEEK'S ASSASSINATION OF A SENIOR GOVERNMENT OFFICIAL SAYS A FEDERAL CONGRESSMAN ORDERED THE MURDER THE OFFICIAL SAID THAT THE CONFESSED PLOTTER SAID A GROUP HE DIDN'T IDENTIFY PLANNED TO KILL PROMINENT POLITICIANS WHO WERE PUSHING FOR POLITICAL REFORMS BANGLADESH AND PAKISTAN REPORTED THE FIRST SUSPECTED CASES OF PNEUMONIC PLAGUE OUTSIDE INDIA NONE OF THE CASES HAS BEEN CONFIRMED AND THE DELHI STATE GOVERNMENT ORDERED SCHOOLS TO REOPEN SAYING THE OUTBREAK OF THE DISEASE HAS BEEN CONTAINED MEANWHILE TWO PERSIAN GULF STATES BEGAN EVACUATING THEIR CITIZENS FROM INDIA BOSNIAN SERBS BLOCKED U. N. CONVOYS ATTEMPTING TO DELIVER SUPPLIES TO PEACEKEEPING TROOPS DESPITE PLEDGES BY BOSNIA SERB LEADERS THAT THE CONVOYS WOULD BE ALLOWED TO MOVE FREELY IN CROATIA BOSNIAN MUSLIM REFUGEES RIOTED AND SET FIRE TO U. N. VEHICLES AFTER U. N. WORKERS TRIED TO PERSUADE THEM TO RETURN TO THEIR HOMES IN THE BIHAC REGION THE I. M. F. DECLINED FOR NOW TO EXPAND CAPITAL RESERVES FOR GOVERNMENTS TO DRAW UPON AND THE SPAT BETWEEN RICH AND POOR NATIONS MARRED AN OTHERWISE UPBEAT GATHERING OF FINANCE MINISTERS FROM THE WORLD'S RICHEST NATIONS THE CAPITAL SHORTAGE IS VIEWED AS A THREAT TO AN OTHERWISE ROSY GLOBAL OUTLOOK A FINNISH SEARCH VESSEL WAS HEADED FOR PORT LAST NIGHT WITH VIDEOTAPES OF THE WRECK OF THE FERRY ESTONIA WHICH SANK IN THE BALTIC LAST WEEK KILLING AT LEAST NINE HUNDRED A SCIENTIST ABOARD THE VESSEL YESTERDAY TOLD FINLAND'S NEWS AGENCY THAT A LARGE OBJECT POSSIBLY THE FERRY'S BOW DOOR WAS SEEN NEAR THE WRECK ANOTHER INVESTIGATOR LATER DENIED THIS ISRAEL EXPRESSED HOPES OF A SUBSTANTIAL INCREASE IN FOREIGN INVESTMENT FOLLOWING FRIDAY'S ANNOUNCEMENT THAT SAUDI ARABIA AND FIVE OTHER PERSIAN GULF STATES WOULD END THE BLACKLISTING OF FOREIGN FIRMS THAT DO BUSINESS WITH ISRAEL MEANWHILE ISRAEL AND TUNISIA TOOK THE FIRST STEP TOWARD ESTABLISHING DIPLOMATIC TIES MAJOR CARDIAC OPERATIONS LEVELED OFF IN THE U. S. IN NINETEEN NINETY THREE BOTH IN NUMBER AND COST ACCORDING TO A SURVEY BY A BALTIMORE CONSULTING FIRM THE SURVEY SAYS ABOUT THREE HUNDRED THIRTY THOUSAND EIGHT HUNDRED CORONARY ARTERY BYPASS OPERATIONS WERE PERFORMED AT AN AVERAGE COST OF FORTY THOUSAND EIGHT HUNDRED FORTY NINE DOLLARS GROWTH IN THE NUMBER AND COST OF ANGIOPLASTIES ALSO SLOWED CAMPAIGN FINANCE REFORM APPEARS DOOMED THROUGH THE REMAINDER OF CLINTON'S TERM AFTER SENATE DEMOCRATS FAILED FRIDAY TO BREAK A REPUBLICAN FILIBUSTER OF A REFORM BILL THE DEFEAT WAS ANOTHER HIGH PROFILE EMBARRASSMENT FOR CLINTON WHO DECRIED THE EFFECTS OF SPECIAL INTEREST MONEY DURING HIS NINETEEN NINETY TWO CAMPAIGN THE RISK OF STROKE CAN BE CUT SIGNIFICANTLY THROUGH SURGERY TO REOPEN PARTIALLY BLOCKED NECK ARTERIES THE CAUSE OF SEVENTY FIVE percent OF ALL STROKES A STUDY SPONSORED BY A NATIONAL INSTITUTES OF HEALTH AGENCY FOUND THE AGENCY FOUND THE BENEFITS OF THE PROCEDURE TO BE SO SIGNIFICANT THAT THE STUDY WAS CUT SHORT AND THE RESULTS RELEASED EARLY BRAZILIANS ARE TO VOTE FOR A NEW PRESIDENT TODAY AND POLLS POINT TO A FIRST BALLOT VICTORY FOR FERNANDO CARDOSO A CENTRIST FORMER FINANCE MINISTER WHICH WOULD AVERT A NOVEMBER RUNOFF THE SURVEYS SHOWED CARDOSO IS FAVORED BY FORTY SIX percent OF THE VOTERS DOUBLE THE TOTAL FOR HIS MAIN RIVAL POPULIST LUIS INACIO LULA DA SILVA OPPONENTS OF YELTSIN MARCHED THROUGH MOSCOW TO COMMEMORATE THE VIOLENT REBELLION LAST YEAR THAT ENDED WITH THE STORMING OF PARLIAMENT BY TROOPS LOYAL TO THE RUSSIAN PRESIDENT AT LEAST FOUR THOUSAND PEOPLE TOOK PART A FEDERAL JUDGE THREW OUT PART OF AN OFFICE OF THRIFT SUPERVISION RULE THAT GAVE LOCAL DEPOSITORS PREFERENCE IN BUYING STOCK OF MUTUAL SAVINGS BANKS THAT CONVERT TO SHAREHOLDER OWNED INSTITUTIONS U. S. DISTRICT JUDGE CHARLES RICHEY RULED THAT THE O. T. S. FAILED TO SEEK REQUIRED PUBLIC COMMENT ON THE LOCAL DEPOSITOR PROVISION IN AN INTERIM FINAL RULE THE REGULATORY AGENCY ISSUED IN APRIL THE THRIFT DEPOSITORS OF AMERICA A RECENTLY FORMED GROUP OF SAVINGS AND LOAN DEPOSITORS HOLDING DEPOSITS IN OTHER THAN THEIR LOCAL S. and L.S HAD FILED A LAWSUIT AGAINST THE RULE THE RULE GAVE PRIORITY STOCK PURCHASE RIGHTS FOR CONVERSIONS TO DEPOSITORS WHO LIVE IN A THRIFT'S LOCAL COMMUNITY OR WITHIN ONE HUNDRED MILES OF A HOME OR BRANCH OFFICE JUDGE RICHEY ORDERED THE O. T. S. TO CONDUCT NEW RULEMAKING INCLUDING SEEKING PUBLIC COMMENT ON THE DISPUTED REGULATION A SPOKESMAN FOR THE AGENCY SAID IT IS HOLDING UP CONVERSIONS WHILE IT REVIEWS THE COURT DECISION JUDGE RICHEY SAID IN HIS RULING THAT THE O. T. S. WAIVED THE LOCAL DEPOSITOR PREFERENCE REQUIREMENT FOR SIX WEEKS AFTER ISSUING THE RULE BUT HAS SINCE GRANTED WAIVERS ONLY ON A CASE BY CASE BASIS REJECTING SEVERAL WAIVER REQUESTS BY CONVERTING INSTITUTIONS THE O. T. S. ISSUED THE REGULATION AS PART OF AN EFFORT TO RESTRICT WINDFALL PROFITS FOR MANAGERS AND OTHER INSIDERS AND FOR PEOPLE WHO MAY SPECULATE BY MAKING DEPOSITS IN MANY DISTANT THRIFTS WITH THE EXPECTATION OF BEING ABLE TO BUY STOCK IF THE INSTITUTION LATER CONVERTS LOCAL DEPOSITORS ARE MORE LIKELY TO OPEN ACCOUNTS TO FIND A PLACE FOR THEIR SAVINGS RATHER THAN TRYING TO TAKE ADVANTAGE OF STOCK AT LOW OFFERED PRICES WHEN MUTUAL ASSOCIATIONS CONVERT TO STOCK SAVINGS BANKS THE O. T. S. HAS REASONED MUTUAL TO STOCK CONVERSIONS HAVE BEEN INCREASING PARTLY AS MUTUAL SAVINGS BANKS SEEK NEW CAPITAL GENERAL MOTORS CORPORATION'S AGREEMENT TO HIRE SEVEN HUNDRED SEVENTY NINE WORKERS TO SETTLE A DISRUPTIVE STRIKE HERE SIGNALS THAT THE AUTO INDUSTRY'S HIGHEST COST PRODUCER IS WILLING TO ADD MORE JOBS IN RETURN FOR LABOR PEACE THE AGREEMENT REACHED FRIDAY REVERSES G. M.'S PLEDGE TO KEEP A LID ON NEW HOURLY HIRES TO BRING LABOR COSTS IN LINE WITH LEANER RIVALS LIKE FORD MOTOR COMPANY AND CHRYSLER CORPORATION MANY OF THE WORKERS TO BE HIRED AT A BIG VEHICLE ASSEMBLY AND PARTS MAKING COMPLEX IN FLINT WILL BE FORMER G. M. HOURLY EMPLOYEES CURRENTLY ON LAYOFF STATUS BUT WHOSE PAY AND BENEFITS ENDED LONG AGO IN ADDITION UNITED AUTO WORKERS UNION OFFICIALS SAY G. M. WILL ALMOST SURELY HAVE TO HIRE NEW PRODUCTION WORKERS AT FLINT THE FIRST TIME THAT THE COMPANY HAS HIRED UNSKILLED HOURLY U. A. W. WORKERS SINCE NINETEEN EIGHTY SIX MOREOVER THE U. A. W. EXPECTS G. M. TO HIRE NEW WORKERS AT OTHER LOCATIONS THREATENING TO STRIKE RAISING THE LIKELIHOOD OF HUNDREDS MORE ADDED JOBS THROUGH YEAR END FRIDAY'S SETTLEMENT WAS FORESHADOWED BY A SEPARATE G. M. AGREEMENT EARLIER IN THE WEEK TO RECALL MORE THAN ONE HUNDRED LAID OFF WORKERS TO HEAD OFF A STOPPAGE AT A SEPARATE PARTS PLANT IN FLINT THUS IN THE SPACE OF A WEEK G. M. AGREED TO HIRE NEARLY ONE THOUSAND NEW HOURLY WORKERS SUBSTANTIALLY ALTERING ITS BLUEPRINT TO DRIVE DOWN LABOR COSTS AT THE SAME TIME THE COMPANY IS CONTINUING TO PAY SOME TWO THOUSAND LAID OFF WORKERS WHO HAVE RECEIVED INCENTIVES TO RELOCATE TO UNDERSTAFFED PLANTS BUT DON'T WANT TO MOVE AND CAN'T BE FORCED TO UNDER THE UNION CONTRACTS G. RICHARD WAGONER PRESIDENT OF G. M.'S NORTH AMERICAN OPERATIONS ACKNOWLEDGED THAT THE COMPANY quote CONTINUES TO BE THE HIGH COST PRODUCER OF VEHICLES IN THIS COUNTRY AND RECOGNIZES THAT THE PRICE OF EXCESS HIRING DURING AN UPTURN IN THIS CYCLICAL INDUSTRY IS A HEAVY FINANCIAL BURDEN WHEN A DOWNTURN OCCURS HOWEVER MR. WAGONER SAID G. M. AND OTHER AUTO MAKERS ARE UNDER PRESSURE TO PRODUCE ENOUGH VEHICLES TO MEET DEMAND G. M. EMPHASIZED THAT THE NEW JOBS AT FLINT REPRESENT A FRACTION OF THE COMPANY'S TOTAL HOURLY WORK FORCE OF TWO HUNDRED FORTY SEVEN THOUSAND AND NOTED THAT SOME FIFTY SEVEN THOUSAND JOBS HAVE BEEN CUT SINCE NINETEEN NINETY ONE BUT A G. M. SPOKESMAN ACKNOWLEDGED THAT THE COMPANY'S DRIVE TO REDUCE LABOR COSTS AGGRESSIVELY MAY SLOW A LITTLE BIT IF WE HAVE TO ADD NEW HIRES BUT IF ADDING THOSE JOBS ENABLES US TO PRODUCE MORE OF THE VEHICLES THAT ARE MOST IN DEMAND AND INCREASE OUR PROFITABILITY THEN IT'S A PLUS quote INDEED G. M. HAD LITTLE CHOICE SALES OF CARS AND TRUCKS IN THE U. S. ARE ROBUST AND G. M. CAN'T AFFORD TO SEE WORK STOPPAGES IDLE ITS ASSEMBLY PLANTS JUST WHEN IT'S FIGHTING FOR MARKET SHARE MOREOVER ANALYSTS SAY G. M. APPARENTLY DIDN'T ANTICIPATE THE STRENGTH OF THIS YEAR'S ECONOMY WHEN IT NEGOTIATED A NATIONAL CONTRACT WITH THE U. A. W. LAST YEAR AND AS A RESULT DIDN'T FORESEE THAT THE UNION COULD SEIZE THE SALES BOOM AS AN OPPORTUNITY TO FORCE THE COMPANY TO HIRE IT WAS JOHN F. SMITH JUNIOR G. M.'S CHIEF EXECUTIVE OFFICER WHO MOVED TO END THE FLINT STRIKE WITH A PHONE CALL IN THE WEE HOURS ON FRIDAY TO THE U. A. W.'S CHIEF G. M. NEGOTIATOR STEPHEN YOKICH MR. YOKICH SAYS THAT IN ADDITION TO DISCUSSING A FLINT SETTLEMENT THEY SPOKE BROADLY ABOUT AVERTING LABOR DISPUTES AT OTHER G. M. PLANTS IN THE END G. M. CHOSE TO RELAX ITS PROMISE TO INVESTORS THAT IT WOULDN'T ADD TO ITS WORK FORCE AND INSTEAD PLACATE THE U. A. W. WHICH CONTENDS ITS MEMBERS ARE BEING WORKED TOO HARD G. M. ALSO AGREED NOT TO CONTRACT OUT SOME WORK BEING DONE BY U. A. W. MEMBERS AT THE FLINT FACILITY THE ABSOLUTE NO HIRING PLEDGE DID FOR G. M. WHAT READ MY LIPS DID FOR GEORGE BUSH SAID HARLEY SHAIKEN A LABOR PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY IN FLINT DAVE YETTAW PRESIDENT OF U. A. W. LOCAL FIVE HUNDRED NINETY NINE WHOSE ELEVEN THOUSAND FOUR HUNDRED MEMBERS WENT ON STRIKE LAST TUESDAY SAID MORE SUCH AGREEMENTS WILL FOLLOW WITHIN SIX MONTHS YOU'LL SEE PLANTS ALL ACROSS THE COUNTRY GOING ON STRIKE FOR THE SAME THING WE GOT HE SAID AFTER A JUBILANT MEETING SATURDAY AT WHICH THE AGREEMENT WAS RATIFIED BY UNION MEMBERS KEN SCOTT THE LOCAL'S BARGAINING CHAIRMAN WENT FURTHER SAYING HE EXPECTS G. M. TO HIRE WITHOUT ANY ADDITIONAL WORK STOPPAGES G. M.'S NORTH AMERICAN OPERATIONS WON'T RETURN TO PRE STRIKE LEVELS UNTIL THE MIDDLE OF THIS WEEK THE STRIKE COST THE COMPANY THE PRODUCTION OF ABOUT TEN THOUSAND VEHICLES ACCORDING TO ANALYSTS AS PARTS SHORTAGES FROM THE FLINT COMPLEX IDLED FOUR OTHER ASSEMBLY PLANTS ONE OF THOSE PLANTS AND FOUR OTHERS THAT RAN OUT OF PARTS BY WEEK'S END WILL NOT BE IN FULL PRODUCTION THIS MORNING G. M.'S APPROACH TO LABOR DISPUTES THROUGHOUT THE YEAR HAS BEEN TO ACT TOUGH FOR A FEW DAYS YET ULTIMATELY GIVE THE U. A. W. MOST OF WHAT IT WANTS EARLIER THIS YEAR G. M. ENDED STRIKES IN ANDERSON INDIANA AND SHREVEPORT LOUISIANA BY DROPPING PLANS TO TRIM JOBS THERE UNTIL LAST WEEK HOWEVER G. M. HAS AVOIDED HIRING NEW WORKERS BY USING TEMPORARY WORKERS AND BY RUNNING ITS PERMANENT WORKERS ON HEAVY OVERTIME CONVERSELY FORD AND CHRYSLER HAVE HIRED NEW WORKERS THIS YEAR quote WHAT WE HAD ON THE TABLE AT TEN A. M. ON TUESDAY THE TWENTY SEVENTH WE GOT AT TEN FORTY FIVE A. M. ON FRIDAY SAID MR. SCOTT IN FLINT AND THEY ASK US WHY DO WE STRIKE G. M.'S HOURLY WORK FORCE WILL CONTINUE TO DIMINISH AS A RESULT OF ATTRITION BUT AT A SLOWER RATE SAY ANALYSTS AS A RESULT THE COMPANY WILL LIKELY BE BURDENED WITH TOO MANY WORKERS IN THE NEXT ECONOMIC DOWNTURN OR AS PRODUCTION DESIGN IMPROVEMENTS MEAN FEWER WORKERS ARE NEEDED TO MAKE G. M. VEHICLES ULTIMATELY G. M. MAY END UP LAYING OFF SOME OF THE NEWLY HIRED PEOPLE BUT CONTINUING TO PAY THEM FULL WAGES AND BENEFITS SAID ANALYST STEPHEN GIRSKY OF PAINEWEBBER INCORPORATED MUCH AS IT DID DURING THE LAST RECESSION TO THE TUNE OF THREE BILLION DOLLARS HOWEVER G. M. CALCULATED THAT HIRING MODERATE QUANTITIES OF PEOPLE WAS A SHORT TERM SACRIFICE WORTH MAKING TO KEEP PRODUCTION LEVELS HIGH DURING THE SALES BOOM SAID WENDY BEALE NEEDHAM AN ANALYST WITH DONALDSON LUFKIN and JENRETTE SHE ADDED I THINK JACK SMITH'S DOING THE BEST HE CAN quote NORAM ENERGY CORPORATION SAID IT COMPLETED THE SALE OF ITS KANSAS NATURAL GAS DISTRIBUTION PROPERTIES TO A UTILICORP UNITED INCORPORATED DIVISION FOR TWENTY THREE MILLION DOLLARS THE SALE TO KANSAS CITY MISSOURI BASED UTILICORP UNITED ALSO INCLUDED CERTAIN PIPELINE FACILITIES IN KANSAS THE PROPERTIES HAVE MORE THAN TWENTY TWO THOUSAND CUSTOMERS NORAM SAID IT WILL USE PROCEEDS FROM THE SALE TO RETIRE DEBT SOME TOP MUTUAL FUND MANAGERS ARE TIPTOEING BACK INTO THE STOCK MARKET WHILE THE CASH LEVEL AT MOST STOCK FUNDS IS JUST ABOUT UNCHANGED FROM THE BEGINNING OF THE YEAR A FEW VETERAN MANAGERS HAVE USED THIS YEAR'S TURBULENT MARKET TO SLASH THEIR CASH POSITIONS AND BOLSTER THEIR STOCKHOLDINGS AMONG THE BUYERS HAS BEEN JAMES CRAIG THE GROWTH STOCK PICKER WHO RUNS DENVER'S NINE point FOUR BILLION DOLLAR ASSET JANUS FUND HE HAS FOURTEEN percent OF HIS PORTFOLIO IN CASH AND SHORTTERM BONDS DOWN FROM THIRTY percent IN MARCH I'M HEAVILY INVESTED BECAUSE OF THE VALUES I SEE MR. CRAIG SAYS WE'RE LOOKING AT NINETEEN NINETY SIX EARNINGS ESTIMATES AND WE'RE FINDING A LOT OF CHEAP STOCKS WE'VE FOUND SOME REALLY GOOD OPPORTUNITIES IN THE DRUG AREA THE INSURANCE AREA FINANCIAL SERVICES MR. CRAIG HAS BEEN BUYING CITICORP INSURERS GENERAL RE AND UNUM AND DRUG STOCKS MERCK AND PFIZER HE HAS ALSO BEEN PICKING UP SUCH STOCKS AS HOME IMPROVEMENT RETAILER LOWE'S LONG DISTANCE CARRIER M. C. I. COMMUNICATIONS AND CASINO AND HOTEL OPERATOR PROMUS BUT MR. CRAIG WARNS THAT FOR THESE GROWTH STOCKS TO SHINE AND FOR ECONOMY SENSITIVE CYCLICAL STOCKS TO FADE ECONOMIC EXPANSION HAS TO SLOW quote YOUR ENEMY IN A CYCLICAL STOCK IS TIME BECAUSE EVENTUALLY THE ECONOMY WILL TURN DOWN AND SO WILL EARNINGS HE SAYS BUT TIME IS YOUR FRIEND IF YOU OWN GROWTH STOCKS THE EARNINGS KEEP GROWING BUT WHAT IF THE ECONOMY DOESN'T SLOW IF WE'RE AT THE BEGINNING OF A THREE YEAR EXPANSION FOR THE ECONOMY I'M TOAST I'M PURE TOAST quote MR. CRAIG CONCEDES BUT WHEN THE ECONOMY TURNS THE MARKET WILL ROTATE VICIOUSLY TO GROWTH STOCKS FROM CYCLICALS CASH HOLDINGS ALSO HAVE BEEN GRADUALLY DWINDLING AT BOSTON'S THIRTY SIX BILLION DOLLAR FIDELITY MAGELLAN FUND THE COUNTRY'S LARGEST MUTUAL FUND FUND MANAGER JEFFREY VINIK HAS TWO percent OF THE FUND'S ASSETS IN CASH DOWN FROM TWELVE percent IN JANUARY JUST BEFORE THE MARKET PEAKED MR. VINIK IS CHARGING IN WHERE OTHER FUND MANAGERS FEAR TO TREAD CHARLES CARLSON MANAGER OF THE GREENSPRING FUND HAS JUST THIRTY EIGHT percent OF HIS FUND'S ASSETS INVESTED IN STOCKS DOWN FROM FIFTY TWO percent AT THE BEGINNING OF THE YEAR HE HAS BEEN ADDING TO HIS POSITION IN TWO REAL ESTATE INVESTMENT TRUSTS MARK CENTERS TRUST AND TOWN and COUNTRY TRUST BUT HE DOESN'T SEE MUCH ELSE THAT INTRIGUES HIM WE'RE STILL PATIENTLY WAITING FOR STUFF THAT FITS OUR CRITERIA SAYS MR. CARLSON WHO IS BASED IN LUTHERVILLE MARYLAND quote IF WE COULD FIND STOCK IDEAS THAT WE WERE VERY EXCITED ABOUT WE'D PROBABLY BRING OUR CASH POSITION DOWN AND PARE OUR FIXEDINCOME POSITION AS WELL MR. CARLSON'S SENTIMENTS ARE CLEARLY SHARED BY MANY OTHER FUND MANAGERS AT THE END OF AUGUST STOCK FUND MANAGERS WERE SITTING ON SEVENTY THREE point NINE BILLION DOLLARS IN CASH EQUAL TO EIGHT point FOUR percent OF STOCK FUND ASSETS ACCORDING TO THE INVESTMENT COMPANY INSTITUTE THAT'S DOWN FROM EIGHT point EIGHT percent IN JULY BUT UP MODESTLY FROM THE BEGINNING OF THE YEAR WHEN CASH HOLDINGS STOOD AT EIGHT percent OF ASSETS IF I HAD A POLICY OF OWNING ONLY GROWTH STOCKS I'D HAVE SOME CASH SAYS G. KENNETH HEEBNER MANAGER OF BOSTON'S FOUR HUNDRED EIGHTY SEVEN MILLION DOLLARS C. G. M. CAPITAL DEVELOPMENT FUND THAT'S AN AREA OF THE MARKET THAT HAS HAD PROBLEMS AND WILL CONTINUE TO HAVE PROBLEMS quote BUT MR. HEEBNER WHO WAS A BIG HOLDER OF GROWTH STOCKS UNTIL NINETEEN NINETY TWO NOW IS HEAVILY INVESTED IN CYCLICAL COMPANIES SUCH AS STEEL PRODUCER L. T. V. AND WALLBOARD MAKER NATIONAL GYPSUM AND HE SEES NO REASON TO HOLD CASH I RECOGNIZE THAT RISING SHORT TERM INTEREST RATES REPRESENT A CHALLENGE FOR STOCKS MR. HEEBNER SAYS BUT I THINK THE FANTASTIC EARNINGS GAINS WILL OVERPOWER ANY INCREASE IN SHORT TERM RATES HIS BIGGEST POSITION FOR INSTANCE IS STONE CONTAINER WHICH MAKES CONTAINERBOARD WALL STREET ANALYSTS ARE LOOKING FOR THE COMPANY WHICH CLOSED FRIDAY AT NINETEEN AND ONE HALF TO EARN EIGHTY FOUR CENTS A SHARE IN NINETEEN NINETY FIVE MR. HEEBNER THINKS PROFIT WILL BE FAR HIGHER quote WITH AN OPPORTUNITY LIKE THAT WHY WOULD YOU PUT YOUR MONEY IN THE BANK THE TWO point TWO BILLION DOLLARS BRANDYWINE FUND OF GREENVILLE DELAWARE USUALLY STAYS FULLY INVESTED IN STOCKS BUT OCCASIONALLY FUND MANAGER FOSTER FRIESS AND HIS ANALYSTS FEEL THE MARKET IS JUST TOO TREACHEROUS AND THEY BOOST THE FUND'S CASH POSITION SHARPLY THEY MADE JUST SUCH A MOVE IN JUNE OFFLOADING SO MUCH STOCK THAT THE CASH POSITION HIT FORTY FIVE percent IN AUGUST IT SEEMED TO BE AN ENVIRONMENT THAT WAS UNSETTLING MR. FRIESS SAYS COMPANIES WERE HITTING OUR NEAR TERM EARNINGS TARGETS BUT THEN THEY WOULD MAKE SOME COMMENTS ABOUT THE NEXT SIX MONTHS BEING TOUGHER quote MR. FRIESS SAYS HE WAS ALSO CONCERNED ABOUT LOOMING POLITICAL CRISES INCLUDING HAITI NORTH KOREA AND WHITEWATER I DON'T THINK THEY'RE TOTALLY BEHIND US HE SAYS NONETHELESS THE FUND HAS PLUNGED BACK INTO THE MARKET WITH ITS CASH POSITION NOW DOWN TO THIRTY percent IN RECENT MONTHS BRANDYWINE FUND HAS BEEN A BIG BUYER OF CHIP MAKER L. S. I. LOGIC WHICH RANKS AS THE FUND'S LARGEST POSITION WHAT I SEE HAPPENING IS THAT OVER THE NEXT FEW WEEKS AND MONTHS WE TAKE ADVANTAGE OF THIS MARKET RETRACEMENT MR. FRIESS SAYS quote IF COMPANIES FIT WE'RE GOING TO BE BUYING THEM THE COMPANY SAID IT OBTAINED A THREE HUNDRED FIFTY MILLION DOLLAR SEVEN YEAR CREDIT LINE FROM A GROUP OF THIRTEEN LENDERS LED BY NATIONSBANK OF TEXAS A SUBSIDIARY OF NATIONSBANK CORPORATION REPLACING AN EXISTING ONE HUNDRED FIFTY MILLION DOLLAR CREDIT LINE THE BROADCASTING COMPANY WILL PAY INTEREST ON THE NEW LINE AT A SHORT TERM FLOATING RATE BASED ON THE LONDON INTERBANK OFFER RATE CLEAR CHANNEL SAID IT WOULD USE THE CREDIT LINE TO PURSUE ACQUISITIONS AND REDUCE DEBT WOOLWORTH CORPORATION DIRECTORS FORCED THE RESIGNATION OF CHIEF EXECUTIVE OFFICER WILLIAM K. LAVIN AFTER LOSING CONFIDENCE IN HIS PROPOSED TURNAROUND PLANS FOR THE AILING RETAILER ACCORDING TO EXECUTIVES CLOSE TO THE COMPANY THE BOARD DECIDED MR. LAVIN'S PRESENCE WAS HAMPERING EFFORTS TO REFOCUS THE AILING RETAILER AND PUT A PERIOD OF FINANCIAL TURMOIL AND EMBARRASSMENT BEHIND IT THESE EXECUTIVES SAID WOOLWORTH ANNOUNCED THAT MR. LAVIN FORTY NINE YEARS OLD HAD RESIGNED FROM THE POSTS OF VICE CHAIRMAN AND CHIEF EXECUTIVE AND FROM HIS SEAT ON THE BOARD EFFECTIVE IMMEDIATELY THE BOARD NAMED JOHN W. ADAMS WHO HAS BEEN WOOLWORTH'S NONEXECUTIVE CHAIRMAN SINCE MAY TO THE POST OF INTERIM CHIEF EXECUTIVE UNTIL MR. LAVIN'S SUCCESSOR IS NAMED THE COMPANY IN A STATEMENT ISSUED AFTER THE CLOSE OF FINANCIAL MARKETS ON FRIDAY ATTRIBUTED MR. LAVIN'S ABRUPT DEPARTURE TO DIFFERENCES WITH THE COMPANY'S BOARD OF DIRECTORS OVER THE FUTURE DIRECTION OF THE COMPANY AND WISHED HIM WELL AFTER THIRTEEN YEARS OF EMPLOYMENT A KNOWLEDGABLE COMPANY SOURCE SAID MR. LAVIN LOST THE BOARD'S CONFIDENCE RECENTLY AFTER HE PRESENTED A PLAN FOR REFOCUSING THE COMPANY ON ITS SPECIALTY RETAILING UNITS IT WASN'T GOOD ENOUGH quote THIS SOURCE SAID WOOLWORTH'S SPECIALTY UNITS INCLUDE THE FOOT LOCKER AND KINNEY SHOESTORE CHAINS A SPOKESWOMAN FOR THE COMPANY DECLINED TO ELABORATE OR COMMENT ON WHETHER MR. LAVIN'S RESIGNATION WAS VOLUNTARY MR. LAVIN COULDN'T BE REACHED FOR COMMENT LAST APRIL MR. LAVIN HAD STEPPED ASIDE AS CHAIRMAN AND CHIEF EXECUTIVE WHILE A SPECIAL COMMITTEE OF BOARD MEMBERS INVESTIGATED ACCOUNTING IRREGULARITIES INCLUDING ALLEGATIONS THAT SENIOR CORPORATE MANAGEMENT INTENTIONALLY UNDERSTATED THE EXPECTED LOSS ON THE SALE OF THE COMPANY'S WOOLCO STORES IN CANADA TO WAL MART STORES INCORPORATED MR. ADAMS A RETIRED CANADIAN MANUFACTURING EXECUTIVE AND AN OUTSIDE WOOLWORTH DIRECTOR LED THE COMMITTEE AND TOOK ON THE ROLE OF INTERIM CHAIRMAN IN A REPORT ISSUED IN MAY THE WOOLWORTH BOARD BLAMED UNNAMED SENIOR WOOLWORTH EXECUTIVES FOR CREATING AN ENVIRONMENT THAT LED TO INACCURACIES BUT STOPPED SHORT OF DIRECTLY BLAMING ANY OF THEM BY NAME OR MAKING MORE SERIOUS CHARGES THE BOARD REINSTATED MR. LAVIN AS CHIEF EXECUTIVE BUT DEMOTED HIM SLIGHTLY TO VICE CHAIRMAN AND ELECTED MR. ADAMS NONEXECUTIVE CHAIRMAN THE INACCURACIES RESULTED IN THE COMPANY'S HAVING TO RESTATE QUARTERLY FINANCIAL RESULTS FROM THE NINETEEN NINETY THREE FISCAL YEAR ENDED JANUARY TWENTY NINTH ALTHOUGH THE TOTAL LOSS FOR THE YEAR WAS LEFT UNCHANGED AT FOUR HUNDRED NINETY FIVE MILLION DOLLARS OR THREE DOLLARS AND SEVENTY SIX CENTS A SHARE IN THE MONTHS SINCE THE ACCOUNTING DEBACLE WOOLWORTH'S LOSSES HAVE DEEPENED LAST MONTH WOOLWORTH REPORTED A LOSS IN ITS FISCAL SECOND QUARTER ENDED JULY THIRTIETH OF FORTY TWO MILLION DOLLARS INCLUDING AN UNEXPECTED AFTER TAX CHARGE OF THIRTY MILLION DOLLARS RELATED TO THE SALE OF THE CANADIAN WOOLCO OPERATIONS THAT WAS ON TOP OF A PRETAX CHARGE OF ONE HUNDRED SIXTY EIGHT MILLION DOLLARS TAKEN AGAINST THE TRANSACTION IN NINETEEN NINETY THREE YESTERDAY AN EXECUTIVE CLOSE TO THE WOOLWORTH BOARD WHO IS FAMILIAR WITH THE DECISION SAID THE BOARD HAD OPTED AGAINST FORCING MR. LAVIN'S DEPARTURE LAST SPRING AS A PRACTICAL MATTER quote THE BOARD KEPT HIM ON AS A WAY TO FIND INFORMATION AND DECIDE ON THE BEST COURSE FOR THE COMPANY THE EXECUTIVE SAID THE MAIN THING IS THAT NOW IT IS OVER WITH IT IS TIME TO FIND SOMEONE ELSE TO COME IN AND RUN THE COMPANY LAST JUNE MR. LAVIN SAID HE PLANNED A NATIONAL AND INTERNATIONAL EXPANSION FOR WOOLWORTH'S SPECIALTY UNITS INCLUDING THE FOOT LOCKER CHAMPS SPORTS AFTERTHOUGHTS AND NORTHERN REFLECTIONS CHAINS OVER THE PAST YEAR OR MORE THE COMPANY HAS BEEN LIQUIDATING HUNDREDS OF LARGELY UNPROFITABLE F. W. WOOLWORTH VARIETY STORES AND KINNEY SHOE STORES BUT THE SALES PICTURE HASN'T IMPROVED SINCE THEN ACCORDING TO ANALYSTS THE COMPANY HAD A DISAPPOINTING BACK TO SCHOOL SEASON AND EVEN FOOT LOCKER ITS STAR PERFORMER IS BEING HURT AS SHOPPERS SHUN EXPENSIVE SNEAKERS IN FAVOR OF MORE AFFORDABLE STYLES SAID BURT FLICKINGER AN INDUSTRY CONSULTANT THE BOARD HAD TO DO SOMETHING RADICAL TO ASSURE WALL STREET THAT THEY'D TRY TO DO BETTER DURING THE HALLOWEEN CHANUKAH AND CHRISTMAS SEASONS quote MR. FLICKINGER SAID ANALYSTS TOOK MR. LAVIN'S DEPARTURE AS GOOD NEWS I THINK IT'S A POSITIVE SAID PETER N. SCHAEFFER RETAIL ANALYST AT DILLON READ and COMPANY THE COMPANY COULD USE SOME ENERGY AND NEW BLOOD THE EXECUTIVE EMPLOYMENT FIRM HERBERT MINES ASSOCIATES INCORPORATED IS CONDUCTING THE SEARCH ON FRIDAY BEFORE THE ANNOUNCEMENT SHARES OF WOOLWORTH CLOSED AT SEVENTEEN point THREE SEVEN FIVE DOLLARS A SHARE UP THIRTY SEVEN point FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IT IS FITTING THAT DAVID GRUBIN'S quote F. D. R. AIRING ON P. B. S. NINE TO ELEVEN P. M. E. D. T. OCTOBER ELEVENTH AND NINE TO ELEVEN THIRTY P. M. E. D. T. OCTOBER TWELFTH SHOULD OPEN WITH FRANKLIN ROOSEVELT'S DEATH ON APRIL TWELFTH NINETEEN FORTY FIVE NO EVENT IN HIS LIFETIME INCLUDING HIS SUCCESSIVE RE ELECTIONS TOLD SO MUCH ABOUT THE PLACE THIS PRESIDENT OCCUPIED IN THE HEART OF THE NATION THAN THE OUTPOURING OF GRIEF AND ANXIETY THAT FOLLOWED HIS DEATH THE LEADER WHO HAD RALLIED A DESPERATE PEOPLE TWELVE YEARS EARLIER WITH THE ASSURANCE THAT THE ONLY THING THEY HAD TO FEAR WAS FEAR ITSELF DIED WHEN THE WAR WAS ALREADY CLEARLY WON EMPLOYMENT FULL PROSPERITY AT HAND AND STILL PEOPLE GATHERED OUTSIDE THE WHITE HOUSE ASKING WHAT'S TO BECOME OF US NOW IN THIS DOCUMENTARY THE FIRST OF THE AMERICAN EXPERIENCE quote SEASON AN OLD MAN RECALLS GETTING THE NEWS FROM THE BOSS MAN WHILE WORKING IN THE FIELDS AND OF FEELING THAT HE HAD LOST HIS BEST FRIEND ON EARTH ALMOST AS SIGNIFICANT AS A SIGN OF THIS PRESIDENT'S RELATION TO THE NATION WAS THE ELECTRIC IMPACT OF HIS ARRIVAL AND THIS FILM HISTORY SPLENDID IN VIRTUALLY EVERY REGARD ALSO SERVES TO UNDERLINE THE TRUTH THAT THE ELECTRICITY RAN BOTH WAYS FOR CLEARER EVEN THAN THE POWER OF THAT REMARKABLE FIRST INAUGURAL ADDRESS AND ITS DELIVERY IN THAT SOON TO BE WORLD FAMOUS RESONANT VOICE WAS THE PASSION OF THE NATION'S RESPONSE ANYONE WHO HAS EVER HEARD PEOPLE RECOLLECT THIS MOMENT WILL RECOGNIZE THE TONE OF THIS SEGMENT NOT LEAST IN THE REMARKABLE IMMEDIACY OF THESE MEMORIES SOME SIXTY YEARS ON ONE COMMENTATOR HERE SAYS OF THE RESPONSE TO ROOSEVELT'S FIRST ADDRESS IF HE HAD SUGGESTED WE ALL GET READY AND WALK TO THE MOON WE WOULD HAVE FOLLOWED HIM HISTORIAN WILLIAM LEUCHTENBERG POINTS OUT THAT WHEREAS IN THE PAST A PRESIDENT MIGHT GET PERHAPS TWO HUNDRED LETTERS A WEEK F. D. R. GOT NEARLY HALF A MILLION AFTER HIS FIRST INAUGURAL OVERNIGHT THE COUNTRY'S DESPERATE MOOD CHANGED ALISTAIR COOKE REMINISCES AS THE FOOTAGE ROLLS ON WHAT IT WAS LIKE TO WITNESS A BUOYANT PARADE OF MILLIONS WITH NATIONAL RECOVERY ACT BANNERS REFLECTING ON THE PASSIONATE LOYALTY THE NEW PRESIDENT INSPIRED MR. COOKE MARVELS AT THE NUMBERS OF PICTURES OF F. D. R. THAT SUDDENLY APPEARED EVERYWHERE ONCE WHILE CHECKING INTO A HOTEL DURING THIS PERIOD HE VENTURED TO MAKE SOME MILDLY SLIGHTING COMMENT ABOUT THE WAY THE PRESIDENT LOOKED IN AN OVERTINTED PHOTO ON THE WALL FOR THIS COMMENT RECALLS MR. COOKE HE WAS PROMPTLY ORDERED TO LEAVE THE PREMISES IT HARDLY NEEDS SAYING THAT THE SAME PRESIDENT SO BELOVED BY THE NATION WAS ALSO HATED AS THE FILM SHOWS BY THOSE WHO ONCE CONSIDERED HIM A MEMBER OF THEIR CLASS THAT HATRED ENDURES TO THIS DAY AS CURTIS ROOSEVELT GRANDSON OF THE PRESIDENT ATTESTS IN ONE OF THE PROGRAM'S NUMEROUS CONTEMPORARY INTERVIEWS BEFORE HE COULD EARN SUCH ENEMIES AND SUCH PROFOUND DEVOTION F. D. R. HAD TO CONQUER PRIVATE TRAGEDY THIS DOCUMENTARY UNRIVALED BOTH IN ITS FRANKNESS AND DEPTH PROVIDES DATA ABOUT ELEANOR'S RELATIONSHIP WITH HER MAJESTICALLY DOMINEERING MOTHER IN LAW ABOUT THE ROOSEVELT MARRIAGE IN ITS UNHAPPIER ASPECTS AND ABOUT THE BY NOW FAIRLY WELL KNOWN FACT THAT THIS MARRIAGE NEARLY FOUNDERED WHEN ELEANOR DISCOVERED IN NINETEEN EIGHTEEN THAT HER HUSBAND WAS ROMANTICALLY INVOLVED WITH ANOTHER WOMAN ABOUT ALL OF THIS THE FILM PROVIDES ABUNDANT DETAIL QUITE ENOUGH FOR A MINISERIES AS WELL AS A CERTAIN AMOUNT OF PSYCHOLOGICAL CONJECTURING ABOUT THE PRINCIPALS THE LATTER IT'S GOOD TO REPORT IS KEPT WELL WITHIN THE BOUNDS OF REASON AND SENSE ONE DOES WONDER HOWEVER WHAT ELEANOR ROOSEVELT BIOGRAPHER BLANCHE WIESEN COOK MEANS WHEN SHE CLAIMS THAT F. D. R. NEVER HAD A YOUTHFUL REBELLION AND HAD ALWAYS BEEN A DUTIFUL SON HE HAD MOST CERTAINLY DEFIED HIS MOTHER WHEN HE COURTED AND MARRIED ELEANOR THE PRIVATE TRAGEDY ROOSEVELT CONQUERED WAS OF COURSE HIS POLIO THE STORY OF THIS VICTORY REVEALS ITSELF THROUGH RARE FOOTAGE AND THROUGH SOME UTTERLY EXTRAORDINARY INTERVIEWS WITH PEOPLE WHO KNEW THE CRIPPLED ROOSEVELT FROM HIS EARLIEST DAYS IN WARM SPRINGS GEORGIA AT THE DECAYING GEORGE RESORT F. D. R. FINANCED IN NINETEEN TWENTY FOUR AND TURNED INTO A REHABILITATION CENTER FOR POLIO VICTIMS quote A MAN WHO COULD NOT WALK WOULD BEGIN TO LEAD THE CRIPPLED NATION A LATER SECTION OF THE FILM CONCLUDES WITH CHARACTERISTIC ELOQUENCE THE TORTUOUS JOURNEY THIS MAN TOOK IS DESCRIBED IN THE FILM'S SECOND HOUR BASED LIKE THE FIRST ON HISTORIAN GEOFFREY C. WARD'S F. D. R. BIOGRAPHIES BEFORE THE TRUMPET AND A FIRST CLASS TEMPERAMENT quote STRICKEN AT THIRTY NINE F. D. R. SIMPLY REFUSED TO ACCEPT HIS PARALYSIS AND THIS MR. WARD POINTS OUT ALLOWED HIM TO BECOME PRESIDENT OF THE UNITED STATES INSTEAD OF A STAMP COLLECTING INVALID IT IS A GOOD BET THAT NO MASS AUDIENCE OF ANY KIND HAS EVER BEFORE SEEN THE F. D. R. OF THIS SECTION HERE ARE THE WASTED LEGS BARE BUT ALSO HERE MORE IMPORTANT ARE PICTURES OF THE PARALYZED FRANKLIN VITAL THE FACE WITH THAT UNFORGETTABLE CONFIDENT SMILE LEADING THE OTHER PATIENTS IN WATER GAMES ALREADY VISIBLE IN HIM THAT IS IS THE TEMPER AND SPIRIT OF THE ROOSEVELT WHO WOULD BECOME PRESIDENT RELATIVELY FEW PEOPLE HAVE SEEN THE STILL MORE TELLING PICTURES JUST FOUR RARE SECONDS TAKEN AT A MUCH LATER TIME OF ROOSEVELT PIVOTING FROM HIS SON'S ARM TO A CANE IN THE EXCRUCIATING SIMULATED WALK HE HAD PERFECTED TO CONCEAL HIS CONDITION REVEALED HERE TOO ARE THE OTHER MEASURES TAKEN TO HIDE THE HANDICAP THE PANTS BLACK AND CUT LONG TO CONCEAL THE BRACES THE REQUIREMENT THAT NONE OF THE HERCULEAN EFFORT BEHIND THE FAKE WALK SHOW ON THE PRESIDENT'S FACE HIS SONS WE LEARN TOOK EXERCISE TO STRENGTHEN THEIR ARMS FOR THIS WALK MR. COOKE MUSES IN A LATER SECTION THAT IT IS DOUBTFUL WHETHER FIVE OUT OF A HUNDRED AMERICANS KNEW THAT FRANKLIN ROOSEVELT WAS PARALYZED POSSIBLY SO NOT ONLY BECAUSE THE PRESS IN HIS ERA OPERATING UNDER MORE POLITE STANDARDS THAN TODAY'S BUT BECAUSE THEY WERE ON THE WHOLE ALSO THE PRESIDENT'S PERSONAL FANS HAPPY TO BE WITH HIM LAUGH WITH HIM AND AS THE FILM MAKES CLEAR TO LOSE MONEY TO HIM AT POKER THERE IS BELIEVE IT NOTHING STANDARD ABOUT THIS FILM INCLUDING THE ODDLY WONDERFUL MUSICAL THEME BY MICHAEL BACON HERE PACKED INTO FOUR U. HOURS IS AN IMPECCABLE OFTEN STARTLINGLY VIVID PORTRAIT OF THE POLITICAL CAREER OF THE CENTURY GERMAN METALS AND TRADING COMPANY METALLGESELLSCHAFT A. G. SAID IT SOLD ITS HEADQUARTERS BUILDING IN FRANKFURT JUST IN TIME FOR THE PROCEEDS TO SHOW UP ON THE CURRENT FISCAL YEAR'S BALANCE SHEET THE ANNOUNCEMENT WHICH WAS EXPECTED IS THE THIRD MAJOR RECENT DIVESTMENT FOR THE GROUP WHOSE FISCAL YEAR ENDED SEPTEMBER THIRTIETH THE TWENTY FIVE THOUSAND SQUARE METER BUILDING AND CAMPUS ON A PRESTIGIOUS SITE IN THE CENTER OF FRANKFURT WAS SOLD TO DEUTSCHE IMMOBILIEN FUNDS A. G. OF HAMBURG M. G. SAID TERMS OF THE DEAL WEREN'T DISCLOSED THE HEADQUARTERS IS THE LAST MAJOR ASSET EXPECTED TO BE SOLD AS PART OF A CASH RAISING RESTRUCTURING JUGGERNAUT UNLEASHED BY A LIQUIDITY CRISIS THAT BROUGHT THE GROUP NEAR BANKRUPTCY EARLIER THIS YEAR GIOVANNI AGNELLI THE HEAD OF ITALY'S AUTO MAKER AND INDUSTRIAL GIANT FIAT COMPANY SAID FRIDAY THAT THE COMPANY EXPECTS PRETAX PROFIT TO TOTAL BETWEEN SIX HUNDRED FORTY MILLION DOLLARS AND ONE BILLION DOLLARS FOR ALL OF NINETEEN NINETY FOUR DEPENDING ON FLUCTUATIONS IN THE EXCHANGE RATE IN ALL OF NINETEEN NINETY THREE ONE OF THE WORST YEARS IN THE COMPANY'S HISTORY FIAT HAD A LOSS TOTALING ONE point SEVEN EIGHT THREE TRILLION LIRE ONE point ONE FIVE BILLION DOLLARS ITALIAN NEWS AGENCY A. G. I. ALSO QUOTED MR. AGNELLI AS SAYING THAT IT IS TOO EARLY TO SAY WHETHER THE COMPANY WILL PAY A DIVIDEND FOR NINETEEN NINETY FIVE A COMPANY SPOKESPERSON SAID THAT NO OTHER FULL YEAR FIGURES WERE BEING MADE AVAILABLE LAST THURSDAY FIAT REPORTED AN OPERATING PROFIT OF SEVEN HUNDRED NINETY TWO BILLION LIRE FOR THE FIRST HALF COMPARED WITH A YEAR EARLIER LOSS OF FOUR HUNDRED SEVENTY SIX BILLION LIRE NIGEL ALEXANDER THIRTY THREE YEARS OLD WAS FIRED AS CHIEF FINANCIAL OFFICER OF SNOWRUNNER INCORPORATED A MANUFACTURER OF WINTER RECREATIONAL EQUIPMENT CALLED SNOW SKATES THE COMPANY SAID A SPECIAL COMMITTEE OF ITS BOARD DIRECTED THE TERMINATION OF MR. ALEXANDER AND TOLD THE COMPANY'S COUNSEL TO SEEK TO RECOVER PAYMENT OF APPROXIMATELY ONE HUNDRED THOUSAND DOLLARS MADE TO AN OUTSIDE CONSULTING FIRM JOHN SUNDET PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SNOWRUNNER SAID THE COMMITTEE quote FOUND THAT AN IMPROPER PAYMENT WAS MADE TO A FIRM THAT ASSISTED IN FINDING UNDERWRITERS FOR A STOCK OFFERING THE COMPANY SAID THE SPECIAL COMMITTEE FORMED IN AUGUST TO INVESTIGATE CERTAIN PAYMENTS TO THE CONSULTING FIRM MIKE WISE CORPORATE CONTROLLER SAID MR. ALEXANDER APPARENTLY DID NOT BENEFIT IN ANY WAY quote FROM THE PAYMENT THE COMPANY DECLINED TO BE MORE SPECIFIC MR. ALEXANDER REACHED FOR COMMENT SAID I DON'T THINK I DID ANYTHING WRONG MR. ALEXANDER'S ATTORNEY CALLED THE TERMINATION A MISTAKE S. and P. ALSO RAISED ITS RATING ON STERLING DRUG INCORPORATED'S SENIOR DEBT TO SINGLE A PLUS FROM TRIPLE B. PLUS REFLECTING THE CREDIT QUALITY OF THE FIRM'S EXPECTED ACQUIRERS IN JUNE KODAK AGREED TO SELL THE UNIT WHICH KODAK RENAMED STERLING WINTHROP TO SANOFI S. A. A UNIT OF ELF AQUITAINE S. A. OF PARIS FOR ONE point SIX EIGHT BILLION DOLLARS A TOTAL SIX BILLION DOLLARS OF DEBT IS AFFECTED BY THE S. and P. RATINGS CHANGES ONE HUNDRED MILLION DOLLARS OF WHICH IS STERLING'S S. and P. ALSO REMOVED THE RATINGS FROM CREDITWATCH WHERE THEY WERE PLACED IN MAY S. and P. SAID KODAK'S DEBT IS EXPECTED TO BE SUBSTANTIALLY REDUCED OVER THE NEXT SEVERAL MONTHS DUE TO PROCEEDS FROM THE SALES OF ITS NON IMAGING HEALTH BUSINESSES THE IMPACT OF DEBT REDUCTION MORE THAN OFFSETS THE LOSS OF OPERATIONAL DIVERSITY PROVIDED BY THE DIVESTED UNITS S. and P. SAID EXPECTED PROCEEDS OF ASSET SALES AGREEMENTS TO DATE SEVEN point TWO BILLION DOLLARS EXCEED KODAK'S SIX point THREE BILLION DOLLARS IN CONSOLIDATED DEBT AS OF JUNE THIRTIETH S. and P. SAID KODAK DOES NOT EXPECT TO POST A LOSS ON THE SALES FURTHERMORE THE ASSET SALES ALLOW SENIOR MANAGEMENT TO FOCUS ON CONSUMER AND COMMERCIAL IMAGING OPERATIONS THE RATINGS SERVICE SAID KIMBERLY CLARK CORPORATION SAID IT PLANS TO SPEND FIFTY MILLION DOLLARS TO EXPAND ITS LAKEVIEW FEMININE CARE PRODUCTS PLANT IN MENASHA WISCONSIN WAYNE R. SANDERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF DALLAS BASED KIMBERLY CLARK SAID THE PROJECT WILL INCREASE EMPLOYMENT AT THE FACILITY FROM TO FOUR HUNDRED PEOPLE FROM THREE HUNDRED FORTY AND WILL CREATE ONE HUNDRED FIFTY CONSTRUCTION JOBS THE EXPANSION SCHEDULED FOR COMPLETION IN EARLY NINETEEN NINETY SIX WILL INCREASE THE SIZE OF THE PLANT BY ONE HUNDRED SIXTY THREE THOUSAND SQUARE FEET TO FIVE HUNDRED FIFTY THOUSAND SQUARE FEET AND WILL ADD TWO MILLION DOLLARS TO THE OPERATION'S PAYROLL BRINGING IT TO SIXTEEN MILLION DOLLARS THE PLANT WHICH OPENED LAST YEAR MAKES KOTEX FEMININE CARE PRODUCTS KIMBERLY CLARK MAKES HOUSEHOLD PERSONAL CARE AND HEALTH CARE PRODUCTS AS WELL AS NEWSPRINT AND SPECIALTY PAPERS A DAWN MIST CLOAKED EASTERN CHINA'S SCENIC QIANDAO LAKE WHEN THE CHARRED PLEASURE BOAT WAS FOUND IN ITS HOLD WAS A GRUESOME CARGO THIRTY TWO BODIES INCLUDING THOSE OF TWENTY FOUR TAIWANESE TOURISTS ROBBED OF THEIR VALUABLES THE MARCH THIRTY FIRST INCIDENT STUNNED TAIWAN THE MURDERS WERE HORRIBLE BUT MORE SHOCKING TO MANY HERE WAS THE AFTERMATH CHINESE AUTHORITIES TRIED TO COVER THEM UP REFUSING TO RETURN REMAINS FOR AUTOPSIES HARASSING TAIWANESE RELATIVES AND JOURNALISTS WHO CAME TO CHINA AND EXECUTING THREE MEN FOR THE CRIME AFTER A BRIEF POORLY DOCUMENTED TRIAL quote IT WAS BARBARIC SAYS TIEN HUNGMAO A UNIVERSITY OF WISCONSIN PROFESSOR WHO HEADS A RESEARCH INSTITUTE IN TAIPEI FOR THE FIRST TIME SINCE CIVIL WAR SEVERED THIS ISLAND FROM THE MAINLAND IN NINETEEN FORTY NINE MANY TAIWANESE SAW CHINA NOT AS THEIR ONCE AND FUTURE MOTHERLAND BUT AS A REMOTE AND ALIEN CULTURE POLLS SINCE THE KILLINGS SHOW THAT THE VAST MAJORITY NOW OPPOSE REUNIFICATION WITH CHINA AND THAT SUPPORT FOR FULL INDEPENDENCE OF TAIWAN HAS REACHED AN ALL TIME HIGH OF TWENTY SEVEN percent WARY OF CHINA AND EMBOLDENED BY PROSPERITY TAIWAN IS CREEPING TOWARD NATIONHOOD THE SHIFT IS STILL SUBTLE BUT THE IMPLICATIONS ARE ENORMOUS AS PROSPECTS FOR A GERMAN STYLE MERGER RECEDE TAIPEI RISKS A COLLISION WITH BEIJING AND ITS INSISTENCE ON REUNIFYING BY FORCE IF NEED BE FOR OTHER NATIONS THE CHALLENGE IS TO ACCOMMODATE THIS ASIAN DYNAMO'S EMERGING AMBITION FOR AN INTERNATIONAL IDENTITY WITHOUT PROVOKING THE GIANT NEXT DOOR THAT MAKES FOR A DELICATE MINUET TAIWAN ALREADY HAS THE ATTRIBUTES OF A PROSPEROUS COUNTRY TWENTY ONE MILLION PEOPLE THE WORLD'S FOURTEENTH LARGEST TRADING ECONOMY AND NINETY BILLION DOLLARS IN FOREIGN EXCHANGE RESERVES MORE CASH ON HAND THAN ANY OTHER GOVERNMENT EXCEPT JAPAN'S TAIWAN ALSO IS TURNING INTO A DEMOCRACY BY NINETEEN NINETY SIX IT WILL HAVE ELECTIONS FOR ALL PUBLIC OFFICES INCLUDING THE PRESIDENCY YET TAIWAN IS STUCK IN GEOPOLITICAL LIMBO ITS CONSTITUTION IS THAT OF THE REPUBLIC OF CHINA BUT ONLY TWENTY NINE AID HUNGRY COUNTRIES STILL FORGO RELATIONS WITH THE ONE point TWO BILLION PEOPLE OF CHINA TO MAINTAIN TIES WITH TAIWAN LAST MONTH ONLY A HANDFUL OF GOVERNMENTS STOOD UP FOR TAIWAN AT THE UNITED NATIONS IN ITS BID TO REJOIN THE ORGANIZATION WHICH IT QUIT IN NINETEEN SEVENTY TWO WHEN CHINA JOINED TO OTHER COUNTRIES TAIWAN REMAINS A DIPLOMATIC PROBLEM WASHINGTON ITS CLOSEST FRIEND HAS JUST REVAMPED THE AWKWARD RULES GOVERNING THEIR UNOFFICIAL quote RELATIONSHIP FOR THE FIRST TIME SINCE RECOGNIZING BEIJING IN NINETEEN SEVENTY NINE THE CLINTON ADMINISTRATION WILL ALLOW TAIWAN'S REPRESENTATIVE OFFICE IN WASHINGTON LONG CALLED THE COORDINATION COUNCIL FOR NORTH AMERICAN AFFAIRS TO USE THE NAME TAIPEI BUT NOT TAIWAN U. S. AND TAIWANESE OFFICIALS CAN MEET MORE FREELY THOUGH NOT AT THE STATE DEPARTMENT THE U. S. INTENDS TO KEEP TAIWAN AT ARM'S LENGTH TO AVOID HARMING RELATIONS WITH CHINA WHICH LAST MONTH WARNED OF CHAOS IF THE U. S. LENDS SUPPORT TO TAIWANESE INDEPENDENCE ASSISTANT SECRETARY OF STATE WINSTON LORD TOLD A SENATE PANEL WASHINGTON WOULD CONTINUE TO MAINTAIN A BALANCE IN RELATIONS WITH BEIJING AND TAIPEI IT IS A BALANCE THAT IS SOMETIMES PECULIAR DIPLOMATS ASSIGNED TO TAIWAN MUST OFFICIALLY quote RESIGN WHEN THEY MOVE TO TAIPEI AND REJOIN THE STATE DEPARTMENT WHEN THEIR TOURS END THE U. S. POLICY IS ILLOGICAL quote SAYS A SENIOR WESTERN OBSERVER IN TAIPEI BUT BECAUSE IT MAINTAINS ACCESS TO BOTH SIDES IT WORKS PERHAPS BUT WILL IT CONTINUE TO THE ANSWER WILL BECOME CLEARER SOON AS TAIPEI VIES WITH CHINA IN THE GLOBAL CREDIBILITY SWEEPSTAKES BOTH TAIPEI AND BEIJING ARE RACING TO BECOME FOUNDING MEMBERS OF THE WORLD TRADE ORGANIZATION THE SUCCESSOR TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE TRADE EXPERTS SAY CHINA IS UNLIKELY TO QUALIFY FOR ENTRY BY THE W. T. O.'S LAUNCH NEXT YEAR TAIWAN IS FAR CLOSER TO MEETING THE MARKET OPENING CRITERIA G. A. T. T. MEMBERS HAVE AGREED THAT CHINA SHOULD ENTER THE W. T. O. FIRST BUT NOTHING IS CERTAIN WOULD OTHER G. A. T. T. MEMBERS BE WILLING TO BLOCK A QUALIFIED APPLICANT FROM JOINING BECAUSE OF POLITICAL PRESSURE FROM BEIJING A FOREIGN OBSERVER IN TAIWAN ASKS CHINA HOPES SO IT DOES WHAT IT CAN TO KEEP TAIWAN FROM GAINING GLOBAL LEGS IT WANTS TAIWAN'S INTERNATIONAL TELEPHONE DIALING CODE CHANGED FROM EIGHT HUNDRED EIGHTY SIX TO EIGHTY SIX THE SAME AS CHINA'S WHEN PRESIDENT CLINTON HOSTED THE ASIA PACIFIC ECONOMIC COOPERATION SUMMIT IN SEATTLE LAST YEAR CHINESE PRESIDENT JIANG ZEMIN AGREED TO ATTEND ONLY IF TAIWAN PRESIDENT LEE TENG HUI WASN'T INVITED MR. LEE WON'T BE ASKED TO THIS YEAR'S MEETING IN INDONESIA EITHER ALTHOUGH BEIJING FEARS THAT EACH TAIWANESE BID FOR DIPLOMATIC BREATHING ROOM LEADS TOWARD INDEPENDENCE PRESIDENT LEE HIMSELF SAYS CHINA IS MISTAKEN quote THE ULTIMATE GOAL OF THE REPUBLIC OF CHINA IS UNIFICATION THE SEVENTY ONE YEAR OLD HEAD OF STATE SAYS IN AN INTERVIEW BUT UNTIL CONDITIONS IN CHINA BECOME MORE MATURE WE WON'T TALK IF THE CHINESE COMMUNISTS CONTINUE TO BEHAVE LIKE THEY DO THEN THE PEOPLE OF TAIWAN WILL BE APPREHENSIVE HE ADDS THAT IT ISN'T LIKELY TAIWAN AND CHINA CAN REUNIFY UNTIL CHINA IS FREE AND DEMOCRATIC AND THE PEOPLE OF THE MAINLAND ENJOY PROSPERITY quote JAPAN KNOWS HOW NETTLESOME AN AMBITIOUS TAIWAN CAN BE THE INTERNATIONAL ORGANIZING COMMITTEE FOR THIS MONTH'S ASIAN GAMES IN HIROSHIMA STARTLED TOKYO RECENTLY BY INVITING PRESIDENT LEE TO ATTEND THE OPENING CEREMONY PRESIDENT LEE JAPANESE EDUCATED AND LONGING TO VISIT JAPAN SET OFF ALARMS IN BEIJING WHEN HE ACCEPTED IT TOOK PRESSURE FROM BOTH CHINA AND JAPAN TO GET THE ORGANIZERS TO RESCIND THE INVITATION BUT TOKYO PERHAPS MINDFUL OF THE NEARLY TWENTY FIVE BILLION DOLLARS A YEAR IN JAPANESE EXPORTS TO TAIWAN STILL SAID TAIWAN'S VICE PREMIER COULD ATTEND AND CHINA DESPITE LOUD RHETORIC AGAINST TOKYO SAID IT WOULD PARTICIPATE IN THE GAMES THIS IS REALLY A VERY CONFUSED ERA WHEN A LOT OF THINGS ARE IN A STATE OF FLUX NOTES TAIWAN'S JUSTICE MINISTER MA YINGJEOU OUR RELATIONS WITH THE MAINLAND ARE UNCERTAIN AND OUR INTERNATIONAL RELATIONS ARE UNCERTAIN TAIWAN'S ECONOMIC STATURE IS NOT SOME OF ITS HIGH TECH COMPANIES SUCH AS COMPUTER MAKER ACER INCORPORATED AND CHIP MAKER UNITED MICROELECTRONICS CORPORATION ARE WORLD LEADERS MANY OF ITS OFFICIALS HAVE STUDIED IN THE U. S. OR JAPAN AS ABOUT FORTY THOUSAND TAIWANESE DO YEARLY TAIPEI IS A MODERN TRAFFIC SHACKLED CAPITAL THAT HAS MORE IN COMMON WITH TOKYO THAN WITH DEVELOPING CHINA WHERE PER CAPITA INCOME IS A TENTH OF TAIWAN'S ELEVEN THOUSAND DOLLARS A YEAR ORDINARY TAIWANESE ARE INCREASINGLY AWARE OF THE GAP BETWEEN THEIR COZY CABLE T. V. WIRED ISLAND AND THE VAST NOMINALLY COMMUNIST REALM ACROSS THE WATER ANNE CHANG A THIRTY EIGHT YEAR OLD TEACHER WHOSE PARENTS WERE BORN ON THE MAINLAND WAS STUNNED BY WHAT SHE SAW ON A TRIP TO HER FATHER'S ANCESTRAL VILLAGE IN NORTHERN CHINA HER RELATIVES HAD AN EIGHT MONTH OLD BABY WHO HAD NEVER BEEN BATHED quote OUR OPPORTUNITIES HAVE BEEN GREATER THAN THEIRS BECAUSE WE ARE FREE MS. CHANG SAYS SHE WANTS TO KEEP THOSE OPPORTUNITIES EVEN IF DOING SO REQUIRES ABANDONING REUNIFICATION HER PARENTS ALSO HAVE REVISED THEIR DREAMS THEY NOW WANT TO BE BURIED IN TAIWAN NOT IN THE FAMILY PLOT IN CHINA TAIWANESE HAVE BEEN SHEDDING THEIR TIES TO CHINA FOR YEARS OVER NINETY percent OF THEM WERE BORN HERE I'D ALWAYS CONSIDERED MYSELF CHINESE BECAUSE THAT'S WHAT I WAS TAUGHT SAYS TSAI FU HAI A FORTY SIX YEAR OLD FISH FARMER BUT I WAS BORN IN TAIWAN NOT CHINA HOW COULD I HAVE BEEN SO STUPID I'M TAIWANESE quote THAT REALIZATION HAS BECOME A POTENT POLITICAL FORCE SHAO TZA LIN A FIERY OPPOSITION PARTY ACTIVIST SAYS TAIWAN MUST BE PREPARED FOR A BLOODY REVOLUTION TO ENSURE NATIONHOOD TSAI SHIH YUAN A MORE CAUTIOUS OPPOSITION LEADER SAYS IF A POLITICIAN ADVOCATES REUNIFICATION WITH CHINA HE IS DOOMED THE PEOPLE WANT AN INDEPENDENT TAIWAN SO UP TO A POINT DO TAIWAN'S LEADERS IN JULY THE GOVERNMENT ISSUED A HISTORIC WHITE PAPER AIMED AT ENDING TWO DECADES OF TIGHTENING DIPLOMATIC ISOLATION AND STAKING OUT CAREFULLY CIRCUMSCRIBED INDEPENDENCE ITS OFFICIALS SENSITIVE TO PUBLIC OPINION SAY THEY WANT TAIWAN ACKNOWLEDGED AS A quote SOVEREIGN POLITICAL ENTITY THAT CAN JOIN INTERNATIONAL ORGANIZATIONS SOME EVEN MUSE ABOUT A FORMAL NAME CHANGE SAYING SUCH A MOVE DOESN'T PRECLUDE FUTURE UNIFICATION AND MIGHT FACILITATE IT IF CHINA ACHIEVES THE ECONOMIC AND POLITICAL DEVELOPMENT THAT WOULD MAKE UNIFICATION LOGICAL BUT IN WHAT ONCE WOULD HAVE BEEN HERESY SOME OFFICIALS HINT THAT THAT DAY MAY NEVER COME WE DIDN'T WORK FORTY YEARS TO BE A COLONY DECLARES SU CHI FORTY FIVE YEAR OLD VICE CHAIRMAN OF THE CABINET LEVEL MAINLAND AFFAIRS COUNCIL HE SAYS HE CONSIDERS CHINA'S CLAIM TO TAIWAN RIDICULOUS quote SUCH OPEN TALK ESPECIALLY BY SENIOR GOVERNMENT OFFICIALS REFLECTS A NEW POLITICAL REALITY IN THIS ONCE AUTHORITARIAN STATE POLITICAL REFORMS WERE SET IN MOTION IN THE LATE NINETEEN EIGHTIES BY CHIANG CHING KUO THE SON OF THE LATE DICTATOR CHIANG KAI SHEK BUT THE COUNTRY WAS UNDER MARTIAL LAW UNTIL NINETEEN EIGHTY SEVEN AND IT WAS PRESIDENT LEE A TAIWANESE NATIVE WHO HAS NEVER SET FOOT ON THE MAINLAND WHO ENERGIZED THE REFORMS AFTER THE YOUNGER CHIANG DIED IN NINETEEN EIGHTY EIGHT AND ONLY IN NINETEEN NINETY ONE DID PRESIDENT LEE RENOUNCE THE CLAIM TO SOVEREIGNTY OVER CHINA FOR DECADES TAIWANESE HAD NO CHOICE BUT TO ACCEPT THAT THEY WERE PART OF CHINA AND DENY THEIR OWN CULTURAL HERITAGE ALL OPPOSITION TO THE OFFICIAL DOGMA WAS CRUSHED CHILDREN WERE PUNISHED JUST FOR SPEAKING TAIWANESE IN SCHOOL THE MEMORIES OF THAT PERIOD WHICH PRESIDENT LEE HAS CALLED THE SORROW OF THE TAIWANESE HAVE BEEN PERMITTED TO SURFACE OPENLY ONLY IN RECENT YEARS TSAI HSIN YI A SEVENTY SEVEN YEAR OLD EEL FARMER IN THE SOUTHERN PORT OF PUTAI RECALLS FRIENDS DISAPPEARING AFTER SPEAKING OUT FOR INDEPENDENCE EARLY IN CHIANG KAI SHEK'S CHINA OBSESSED RULE TODAY NONCHALANCE HAS REPLACED PARANOIA AT AN ARMY OUTPOST NEAR PUTAI WHERE BATTLE WORN SOLDIERS ONCE SCANNED THE SEA FOR COMMUNIST CHINESE INVADERS TAIWANESE DRAFTEES PLACIDLY GUARD COMMERCIAL OYSTER BEDS AND TRY TO STAY OUT OF THE SUN A PIMPLY TWENTY ONE YEAR OLD SERVING TWO YEARS OF NATIONAL SERVICE SEES NO THREAT FROM CHINA I DON'T THINK THEY'LL EVER COME TAIWAN NOW FOCUSES ON DOMESTIC POLITICS WHEN TAIPEI SHUT UNLICENSED OPPOSITION RADIO STATIONS IN AUGUST HUNDREDS OF TAIPEI TAXI DRIVERS AND OTHER LOYAL LISTENERS RIOTED THROWING BRICKS AND DESTROYING CARS BEFORE POLICE RUSHED IN WITH BATONS quote YOU SEE YELLED PASTOR WILLIAM J. K. LO A FIFTY THREE YEAR OLD PRESBYTERIAN STANDING DEFIANTLY UNDER A PLUME OF BLACK SMOKE THEY STILL OPPRESS US BUT WHILE THE MAINLAND IS STILL LED BY A SINGLE PARTY DOMINATED BY OCTOGENARIANS TAIWAN IS EXPERIMENTING WITH A NEW AND RAUCOUS POLITICAL SYSTEM IT GOES FAR BEYOND THE FILM CLIPS OFTEN SHOWN ON U. S. T. V. NEWS OF BRAWLS IN THE LEGISLATURE MOST ELECTED POLITICIANS ARE TAIWANESE AND OFFICE HOLDERS WHO ARE THE CHILDREN OF MAINLAND EXILES ARE LEARNING THE LOCAL DIALECT AND PROCLAIMING THEIR LOCAL ROOTS THE NEW PLURALISM HAS BREATHED LIFE INTO TAIWAN'S CRAVING FOR AN INDEPENDENT IDENTITY JUST AS TAIWAN AND CHINA HAVE DEVELOPED A COMPLEX WEB OF CONTACTS WHILE TAIWANESE FOCUS ON THE POSSIBILITY OF A CHINESE INVASION THE REAL ASSAULT HAS BEEN IN THE OTHER DIRECTION TAIWANESE COMPANIES HAVE INVESTED AT LEAST FIFTEEN BILLION DOLLARS IN MAINLAND FACTORIES REAL ESTATE AND KARAOKE BARS TAIWANESE TOURISTS HAVE SPENT BILLIONS OF DOLLARS IN CHINA AND THE GOVERNMENT WARNS OF THE DANGER OF ECONOMIC DEPENDENCE ON THE MAINLAND BUT TO MANY TAIWANESE ALL THIS CONTACT MAKES TAIWAN AND CHINA SEEM EVEN FARTHER APART TALKS THAT BEGAN IN NINETEEN NINETY THREE OVER FISHING DISPUTES PLANE HIJACKINGS AND OTHER ISSUES FAR FROM BEING A PROLOGUE TO UNIFICATION UNDERSCORE DIFFERENCES MAYBE WE HAVEN'T UNDERSTOOD UNTIL NOW THAT OUR IDEOLOGY ISN'T THE SAME THE THINKING ISN'T THE SAME quote SAYS DAVID TZENG A FORTY THREE YEAR OLD OWNER OF AN ACRYLIC FACTORY IN TAINAN HE FIRST VISITED CHINA IN NINETEEN EIGHTY NINE WHEN PRO DEMOCRACY PROTESTERS WERE GATHERING IN BEIJING IT WAS INCREDIBLY EXCITING HE RECALLS AFTER THE CRACKDOWN HE SLOWLY GREW MORE DISILLUSIONED IN FOUR SUBSEQUENT VISITS TO THE MAINLAND HE INVESTED ONE HUNDRED EIGHTY THOUSAND DOLLARS TO OPEN A RESTAURANT IN THE EASTERN CITY OF HANGZHOU THEN CLOSED IT BECAUSE OF HARASSMENT BY CHINESE OFFICIALS AND LOCAL GANGSTERS NOW I HAVE NO FEELING FOR CHINA HE SAYS EVEN SOME VETERANS OF CHINA'S CIVIL WAR WHO CAME OVER TO TAIWAN AS PEASANT SOLDIERS HALF A CENTURY AGO ARE LOSING THEIR EMOTIONAL LINKS MANY MARRIED TAIWANESE AND WATCHED THEIR CHILDREN GROW UP AS PART OF THE quote TAIWAN MIRACLE THEY HAVE VISITED THE IMPOVERISHED VILLAGES THEY LEFT BEHIND AND LEARNED THAT THEY ARE USUALLY VALUED BACK HOME FOR LITTLE MORE THAN THE MONEY THEY BRING SOME MEN WHO LONG NURTURED THE HOPE OF RETURNING TO CHINA AS LIBERATORS ARE RETHINKING THEIR IDEAS I'VE BEEN BACK TO CHINA AND I WAS SADDENED BY WHAT I SAW SAYS CHEN HSIU JEN A SIXTY SIX YEAR OLD RETIREE WHO WAS DRAFTED INTO CHIANG KAI SHEK'S ARMY WHEN JUST FIFTEEN NOW I THINK WE ARE ALREADY INDEPENDENT JUST MAYBE WE SHOULDN'T SAY IT OPENLY AND MAKE BEIJING ANGRY quote MOODY'S INVESTORS SERVICE INCORPORATED SAID IT DOWNGRADED CREDIT AND FINANCIAL STRENGTH RATINGS OF THIS COMPANY AND ITS PRINCIPAL INSURANCE UNITS AFFECTING ABOUT FOUR HUNDRED MILLION DOLLARS OF DEBT SECURITIES THE RATINGS WERE INITIALLY PLACED UNDER REVIEW AUGUST NINETEENTH MOODY'S SAID THE DOWNGRADE REFLECTS WEAK PROFITABLITY OF THE PROPERTY AND CASUALTY OPERATIONS UNCERTAINTIES ABOUT RESERVE ADEQUACY AND DIMINISHED FINANCIAL FLEXIBILITY AT THE HOLDING COMPANY CONTINENTAL DECLINED TO COMMENT MOODY'S LOWERED SENIOR DEBT TO B. A. A. TWO FROM B. A. A. ONE AND INSURANCE UNIT FINANCIAL STRENGTH RATINGS TO SINGLE A THREE FROM SINGLE A TWO TEXOIL INCORPORATED HOUSTON IN AN EFFORT TO REDUCE ITS ADMINISTRATIVE COSTS SAID IT WILL HELP ITS SHAREHOLDERS WHO OWN FEWER THAN ONE HUNDRED SHARES SELL THEM WITHOUT PAYING FEES THE ENERGY COMPANY IS NOT BUYING THE SHARES BACK D. HUGHES WATLER JUNIOR TEXOIL'S CHIEF FINANCIAL OFFICER SAID RATHER TEXOIL WILL SHOULDER THE EXPENSE WHEN A SHAREHOLDER SELLS TEXOIL STOCK THROUGH A COMPANY SELECTED BROKER UNDER THE PROGRAM SHARES CAN BE TENDERED FOR SALE THROUGH OCTOBER THIRTY FIRST TENDERED SHARES WILL THEN BE COMBINED INTO LOTS OF ONE HUNDRED SHARES OR MORE AND SOLD IN THE OPEN MARKET THE NUMBER OF TEXOIL COMMON SHARES OUTSTANDING CURRENTLY MORE THAN FOUR MILLION WON'T CHANGE SIGNIFICANTLY MR. WATLER SAID ONE THOUSAND FOURTEEN OF TEXOIL'S ONE THOUSAND NINETY TWO SHAREHOLDERS OWN FEWER THAN ONE HUNDRED TEXOIL COMMON SHARES SWISS REINSURANCE COMPANY'S SURPRISE ANNOUNCEMENT THAT IT WILL SELL NEARLY HALF ITS OPERATIONS FOR ABOUT FIVE point FIVE BILLION SWISS FRANCS FOUR point TWO EIGHT BILLION DOLLARS MARKS A BOLD OPENING MOVE FOR NEW CHIEF EXECUTIVE OFFICER LUKAS MUEHLEMANN'S CAMPAIGN TO REVAMP THE OLD LINE INSURER AT A HASTILY CALLED NEWS CONFERENCE FRIDAY MR. MUEHLEMANN SAID SWISS RE WILL SELL ITS DIRECT INSURANCE BUSINESSES TO ALLIANZ GROUP OF GERMANY AND WINTERTHUR INSURANCE COMPANY OF SWITZERLAND HE ALSO UNVEILED A GLOBAL STRATEGY FOR THE GROUP DIVESTMENT OF DIRECT INSURANCE ACCOUNTING FOR FORTY EIGHT percent OF TOTAL PREMIUM INCOME CONCENTRATION ON REINSURANCE WITH ITS SIGNIFICANT GROWTH POTENTIAL AND VERY GOOD EARNINGS PROSPECTS AND A quote SYSTEMATIC EXPANSION OF THIS CORE BUSINESS GLOBALLY A DIRECT INSURER HAS A CONTRACTURAL RELATIONSHIP WITH THE POLICYHOLDER REINSURERS ACCEPT A SHARE OF AN INSURER'S RISKS IN EXCHANGE FOR A PREMIUM BANQUE NATIONALE DE PARIS AND DRESDNER BANK A. G. PLAN TO MERGE THEIR BANKING OPERATIONS IN SPAIN AS ONE OF THE NEXT STEPS IN THEIR WORLD WIDE PROGRAM OF COOPERATION DRESDNER'S CHIEF EXECUTIVE JUERGEN SARRAZIN SAID THE MOVE IS EXPECTED TO INVOLVE A PUBLIC TENDER OFFER FOR THE JUST MORE THAN TWENTY percent OF B. N. P. ESPANA S. A.'S SHARES HELD BY PRIVATE INVESTORS HE TOLD A NEWS CONFERENCE DETAILS ARE BEING WORKED OUT BUT A DECISION IS LIKELY TO BE ANNOUNCED IN THE FIRST FEW MONTHS OF NEXT YEAR HE SAID B. N. P. ESPANA IS A RETAIL BANK WITH SEVENTY THREE BRANCHES ACROSS SPAIN WHILE DRESDNER'S THREE BRANCHES IN MADRID BARCELONA AND MALAGA PROVIDE WHOLESALE BANKING SERVICES FOR CORPORATE CLIENTS PLUS RETAIL SERVICES FOR TOURISTS IN SOUTHERN SPAIN DRESDNER OFFICIALS SAID THE TWO PARTNERS ARE DISCUSSING THE POSSIBILITY OF FURTHER BRANCH PURCHASES IN ORDER TO ENLARGE THEIR NETWORK ANOTHER POSSIBILITY HOWEVER MAY BE TO MOVE AWAY FROM RETAIL BANKING IN ORDER TO CONCENTRATE ON LARGE AND MIDSIZE CORPORATE CUSTOMERS AND WEALTHY INDIVIDUALS PENN TRAFFIC COMPANY AGREED TO BUY FORTY FIVE ACME SUPERMARKETS FROM AMERICAN STORES COMPANY FOR ABOUT NINETY FOUR MILLION DOLLARS INCLUDING NINETEEN MILLION DOLLARS IN INVENTORY THE STORES ARE EXPECTED TO ADD ABOUT TWO HUNDRED FIFTY MILLION DOLLARS IN ANNUAL REVENUE PENN TRAFFIC SAID THE TRANSACTION IS EXPECTED TO CLOSE IN NOVEMBER FORTY ONE OF THE STORES ARE IN PENNSYLVANIA AND FOUR ARE IN NEW YORK THEY WILL OPERATE UNDER THE INSALACO P. and C. RIVERSIDE OR BI LO NAMES MOST OF THE STORES WILL BE RENOVATED OR ENLARGED IN THE NEXT TWO YEARS TO THIRTY MONTHS AT A TOTAL OF APPROXIMATELY FIFTY MILLION DOLLARS PENN TRAFFIC BASED IN SYRACUSE N. Y. ALSO SAID IT ENTERED INTO AN AMENDMENT TO ITS REVOLVING CREDIT AGREEMENT THAT REDUCES ITS INTEREST RATE ON BORROWINGS PENN TRAFFIC OPERATES TWO HUNDRED THIRTY SIX SUPERMARKETS AMERICAN STORES BASED IN SALT LAKE CITY OPERATES ONE THOUSAND SIX HUNDRED SEVENTY EIGHT STORES IN TWENTY SEVEN STATES BAKER HUGHES INCORPORATED SAID A FISCAL FOURTH QUARTER PRETAX GAIN OF ONE HUNDRED MILLION DOLLARS ON THE SALE OF ITS SPECIALTY PUMP UNIT WILL BE SUBSTANTIALLY OFFSET BY RESTRUCTURING AND DEBT DEFEASANCE CHARGES THE HOUSTON ENERGY SERVICES COMPANY SAID IT USED A PORTION OF THE PROCEEDS FROM THE SALE OF ITS ENVIROTECH PUMPSYSTEMS UNIT TO REPURCHASE ALL OF ITS SIX percent DISCOUNT DEBENTURES DUE TWO THOUSAND TWO THE DEFEASANCE GENERATED A PRETAX LOSS OF ABOUT FIFTY MILLION DOLLARS FOR THE FOURTH QUARTER ENDED SEPTEMBER THIRTIETH IT SAID IN ADDITION BAKER HUGHES SAID IT EXPECTS TO TAKE A PRETAX CHARGE OF BETWEEN FORTY FIVE MILLION DOLLARS AND FIFTY MILLION DOLLARS RELATED TO RESTRUCTURING COSTS AT ITS INTEQ DIVISION THE COMPANY SAID IT IS COMFORTABLE WITH FOURTH QUARTER EARNINGS ESTIMATES EXCLUDING THESE NONRECURRING ITEMS OF BETWEEN SEVENTEEN CENTS AND NINETEEN CENTS A SHARE OR TWENTY FOUR MILLION DOLLARS TO TWENTY SIX point EIGHT MILLION DOLLARS IN NINETEEN NINETY THREE THE COMPANY REPORTED FISCAL FOURTH QUARTER NET INCOME OF TWENTY EIGHT MILLION DOLLARS OR EIGHTEEN CENTS A SHARE ON REVENUE OF SIX HUNDRED FIFTY FIVE MILLION DOLLARS CONVEX COMPUTER CORPORATION RICHARDSON TEXAS SAID IT REACHED AN AGREEMENT UNDER WHICH HEWLETT PACKARD COMPANY SALESPEOPLE WILL SELL CONVEX'S HIGH PERFORMANCE EXEMPLAR COMPUTERS THE EXEMPLAR SPP LINE OF COMPUTERS INCORPORATES FROM TWO TO ONE HUNDRED TWENTY EIGHT OF HEWLETT'S P. A. RISC MICROPROCESSORS IN A PARALLEL PROCESSING SUPERCOMPUTER DESIGN AS A RESULT THE COMPUTERS RUN PROGRAMS DESIGNED FOR HEWLETT'S UNIX WORKSTATIONS THE AGREEMENT WAS EXPECTED TERRY ROCK PRESIDENT OF CONVEX SAID THAT AFTER SHIPPING SEVEN EXEMPLARS IN THE FIRST QUARTER OF THE YEAR AND EIGHTEEN IN THE SECOND QUARTER CONVEX SHIPPED MORE THAN TWENTY FIVE IN THE THIRD QUARTER EXEMPLARS RANGE IN PRICE FROM ONE HUNDRED FORTY FIVE THOUSAND DOLLARS TO EIGHT MILLION DOLLARS DEPENDING ON HOW MANY PROCESSORS ARE INCLUDED HEWLETT PACKARD BASED IN PALO ALTO CALIFORNIA WILL START SELLING THE COMPUTERS EARLY NEXT YEAR FINANCIER LEON BLACK'S APOLLO REAL ESTATE INVESTMENT FUND IN A BID TO ENTER THE REAL ESTATE INVESTMENT TRUST BUSINESS HAS AGREED TO ACQUIRE A SMALL BOCA RATON FLORIDA R. E. I. T. SOUTHEAST REALTY CORPORATION AN AFFILIATE OF THE APOLLO FUND PLANS TO ACQUIRE CROCKER REALTY INVESTORS INCORPORATED IN A STOCK SWAP THE NEW COMPANY TO BE CALLED CROCKER REALTY TRUST IS EXPECTED TO HAVE ABOUT THIRTEEN point FOUR MILLION SHARES OUTSTANDING THE APOLLO AFFILIATE WILL CONTRIBUTE FORTY SEVEN SOUTHEASTERN OFFICE PROPERTIES TO THE NEW COMPANY AND WILL OWN ABOUT EIGHTY SEVEN percent OF THE NEW SHARES CROCKER WILL CONTRIBUTE THREE PROPERTIES ITS CURRENT SHAREHOLDERS WILL HOLD ABOUT EIGHT percent OF THE NEW SHARES AND ITS MANAGEMENT FIVE percent THE NEW COMPANY TO BE RUN BY CROCKER'S CURRENT MANAGEMENT PLANS TO FILE FOR LISTING ON THE AMERICAN STOCK EXCHANGE KIDDER PEABODY and COMPANY STRUGGLING TO STEM STEEP LOSSES WILL SLASH ABOUT FIFTEEN percent OF ITS STAFF AND EXIT FROM SEVERAL BUSINESS LINES IN A BROAD RESTRUCTURING PEOPLE FAMILIAR WITH THE PLAN SAY THE MOVE TO BE ANNOUNCED AS EARLY AS THIS WEEK WILL MARK THE MOST SWEEPING MAKEOVER OF KIDDER SINCE GENERAL ELECTRIC COMPANY BOUGHT THE BROKERAGE FIRM IN NINETEEN EIGHTY SIX THE RESTRUCTURING COULD INCLUDE ABANDONING NONCORE OPERATIONS SUCH AS FOREIGN EXCHANGE STOCK OPTIONS AND FUTURES RELATED BUSINESSES THE PEOPLE SAID KIDDER'S CORE FIXED INCOME GROUP PARTICULARLY ITS MORTGAGE BOND OPERATIONS IS LIKELY TO REMAIN LARGELY INTACT FOR NOW THE PEOPLE SAID AS MANY AS SEVEN HUNDRED FIFTY OF KIDDER'S FIVE THOUSAND EMPLOYEES COULD BE LET GO UNDER THE PLAN TRIGGERING A PRETAX CHARGE OF AS MUCH AS FORTY MILLION DOLLARS FOR SEVERANCE PAYMENTS THE PEOPLE SAID AND THERE COULD BE MORE CUTS IF LOSSES AREN'T REVERSED KIDDER IS LIKELY TO HAVE A NINETEEN NINETY FOUR PRETAX LOSS OF NEARLY FIVE HUNDRED MILLION DOLLARS AMID A BOND TRADING SCANDAL AND SURGING INTEREST RATES WHICH HAVE HAMMERED KIDDER'S MORTGAGE BOND BUSINESS THE RESTRUCTURING REPRESENTS THE LAUNCH OF A TOUGH COST CUTTING DRIVE BY KIDDER'S NEW BOSSES CHAIRMAN DENNIS DAMMERMAN AND PRESIDENT DENIS NAYDEN THE TWO WERE RECRUITED FROM G. E. IN JUNE TO REPLACE MICHAEL CARPENTER WHO WAS OUSTED AS KIDDER'S CHAIRMAN PRESIDENT AND C. E. O. MESSRS. DAMMERMAN AND NAYDEN HAVE SPENT MUCH OF THEIR TIME AT THE HELM SEARCHING FOR WAYS TO SLASH COSTS THE TWO HAVE SET THE RESTRUCTURING IN A BID TO RETURN KIDDER TO PROFITABILITY THE MOVE COULD LAY THE GROUNDWORK FOR AN EVENTUAL SALE OF KIDDER ANALYSTS SAY THOUGH ANY SALE OR SPINOFF ISN'T EXPECTED UNTIL NEXT YEAR OR NINETEEN NINETY SIX AND G. E. HAS SAID IT HAS NO CURRENT PLANS TO SHED ITS BROKERAGE UNIT THE RESTRUCTURING WOULD MAKE IT EASIER TO SELL OFF KIDDER EITHER AS A WHOLE OR IN PARTS ANALYSTS SAY SPOKESMEN FOR KIDDER AND G. E. DIDN'T RETURN CALLS SEEKING COMMENT THE PLAN STEMS FROM A SERIES OF SENIOR MANAGEMENT MEETINGS HELD BY KIDDER LAST MONTH SINCE THEN KIDDER'S EMPLOYEES HAVE BEEN BRACING FOR CUTBACKS BUT EMPLOYEES HAVEN'T YET BEEN TOLD OF THE FIRM'S RESTRUCTURING AND KIDDER EXECUTIVES STILL ARE BEING ASKED TO PROVIDE FURTHER POTENTIAL CUTS RAISING THE POSSIBILITY THERE COULD EVENTUALLY BE ADDITIONAL LAYOFFS THE PEOPLE SAID DESPITE ITS BREADTH THE MOVE IS A GAMBLE KIDDER BADLY NEEDS TO DIVERSIFY ITS BUSINESS ANALYSTS SAY KIDDER'S BOND OPERATIONS HAVE GENERATED NEARLY ALL OF THE FIRM'S PROFIT SINCE NINETEEN NINETY BUT HAVE LED TO MOST OF ITS LOSSES THIS YEAR INSTEAD OF SIMPLY SLASHING COSTS KIDDER ALSO OUGHT TO BE SEEKING AVENUES FOR DRUMMING UP NEW BUSINESS AND A MORE BROAD BASED REVENUE STREAM SOME ANALYSTS SAY MOREOVER MORALE COULD BE HURT BECAUSE THE CUTS COME AS KIDDER HAS AGREED TO PAY ABOUT TEN MILLION DOLLARS IN SEVERANCE TO EDWARD CERULLO WHO WAS PRESSURED TO RESIGN IN JULY AS BOND CHIEF AND IS FOOTING THE LEGAL BILL FOR SEVERAL FORMER SENIOR EXECUTIVES EMBROILED IN THE FIRM'S BOND SCANDAL HEADHUNTERS EXPECT HEAVY DEPARTURES OF KIDDER TRADERS AND INVESTMENT BANKERS EARLY NEXT YEAR AFTER BONUSES ARE DOLED OUT THIS MOVE CAPS A TUMULTUOUS YEAR FOR KIDDER IN APRIL THE FIRM FIRED JOSEPH JETT ITS FORMER GOVERNMENT BOND CHIEF AND ACCUSED HIM OF CREATING THREE HUNDRED FIFTY MILLION DOLLARS IN PHONY PROFIT TO MASK LOSSES OF ABOUT EIGHTY FIVE MILLION DOLLARS OVER TWO AND ONE HALF YEARS MR. JETT DENIES THE ALLEGATIONS HE SAYS HIS KIDDER SUPERIORS KNEW ABOUT AND DIRECTED HIS TRADING THE SECURITIES AND EXCHANGE COMMISSION AND THE MANHATTAN U. S. ATTORNEY'S OFFICE AMONG OTHER REGULATORS ARE INVESTIGATING THE MATTER THE SCANDAL HAS BEEN THE TALK OF WALL STREET AND LED TO THE DEPARTURE OF SEVERAL SENIOR KIDDER EXECUTIVES INCLUDING MESSRS. CARPENTER AND CERULLO AS WELL AS MELVIN MULLIN KIDDER'S DERIVATIVES CHIEF AND AN EARLY SUPERVISOR OF MR. JETT MEANWHILE KIDDER HAS RECEIVED CAPITAL INFUSIONS TOTALING FIVE HUNDRED FIFTY MILLION DOLLARS SINCE APRIL TO BOLSTER ITS FINANCIAL FOOTING INCLUDING TWO HUNDRED MILLION DOLLARS FROM G. E. KIDDER IS FAR FROM THE FIRST FIRM TO ANNOUNCE BIG LAYOFFS ON WALL STREET THIS YEAR SELECTED CUTS HAVE BEEN MADE AT LEHMAN BROTHERS INCORPORATED MERRILL LYNCH and COMPANY AND C. S. HOLDING'S C. S. FIRST BOSTON INCORPORATED UNIT AMONG OTHER BROKERAGE FIRMS AS THE SECURITIES INDUSTRY COMES OFF ITS WORST PROFIT PERIOD SINCE THE NINETEEN EIGHTY SEVEN STOCK MARKET CRASH KIDDER HASN'T MADE MUCH MONEY IN FOREIGN EXCHANGE STOCK OPTIONS OR FUTURES TRADING OVER THE YEARS BROKERAGE EXECUTIVES SAY AND ITS INVESTMENT BANKING AREA HAS BEEN STRUGGLING TO BREAK SIGNIFICANTLY INTO THE BLACK INDEED THE SOON TO BE ANNOUNCED CUTS COULD INCLUDE PULLING OUT OF SEVERAL NONCORE INDUSTRY GROUPS COVERED BY KIDDER'S INVESTMENT BANKING OPERATIONS PEOPLE CLOSE TO THE FIRM SAID MEANWHILE KIDDER CONTINUES TO PARE ITS MORTGAGE BOND INVENTORY THE FIRM'S PORTFOLIO OF MORTGAGE BONDS HAS BEEN SLASHED BY MORE THAN HALF FROM A PEAK OF SIXTEEN BILLION DOLLARS BUT KIDDER ISN'T LIKELY TO SET SIGNIFICANT STAFF CUTS IN THIS AREA UNTIL THE FIRM'S INVENTORY IS REDUCED FURTHER PEOPLE CLOSE TO THE FIRM SAY ANITA RAGHAVAN CONTRIBUTED TO THIS ARTICLE FIDELITY INVESTMENTS SAID IT SIGNED AN AGREEMENT WITH BLOOMBERG FINANCIAL MARKETS ENABLING TRADING OF SEVEN OF FIDELITY'S INSTITUTIONAL MONEY MARKET FUNDS OVER BLOOMBERG'S ON LINE SYSTEM THE AGREEMENT WHICH BECOMES EFFECTIVE IN DECEMBER WILL ENABLE INSTITUTIONS WITH AUTOMATED TREASURY OPERATIONS TO INVEST CASH IN THE FIDELITY MONEY MARKET FUNDS VIA BLOOMBERG'S COMPUTERIZED SERVICE FIDELITY SAID FIDELITY BASED IN BOSTON SAID THE INSTITUTIONAL MONEY MARKET FUNDS INVOLVED ARE FIDELITY INSTITUTIONAL CASH MONEY MARKET PORTFOLIO FIDELITY INSTITUTIONAL CASH DOMESTIC PORTFOLIO FIDELITY INSTITUTIONAL CASH GOVERNMENT PORTFOLIO FIDELITY INSTITUTIONAL CASH TREASURY PORTFOLIO FIDELITY INSTITUTIONAL CASH TREASURY THE SECOND PORTFOLIO FIDELITY U. S. TREASURY INCOME PORTFOLIO AND FIDELITY INSTITUTIONAL TAX EXEMPT CASH PORTFOLIO BESIDES ENABLING TRADING THE NEW SERVICE WILL PROVIDE USERS WITH HISTORICAL INFORMATION ON EACH PORTFOLIO FIDELITY ADDED ITALIAN HOTEL COMPANY CIGA COMPANY SAID ITS LOSS NARROWED TO SIXTY FOUR BILLION LIRE FORTY ONE point ONE MILLION DOLLARS IN THE FIRST HALF FROM ONE HUNDRED TEN BILLION LIRE A YEAR EARLIER THE COMPANY ALSO SAID THAT ITS CONSOLIDATED SALES ROSE TO TWO HUNDRED THIRTY NINE BILLION LIRE FROM TWO HUNDRED NINE BILLION LIRE IN THE FIRST HALF OF NINETEEN NINETY THREE I. T. T. CORPORATION'S SHERATON UNIT IS IN THE PROCESS OF A PUBLIC OFFER FOR CIGA WHICH WILL END IN MID OCTOBER I. T. T. WILL OWN ABOUT SEVENTY percent OF THE LUXURY HOTEL COMPANY ONCE THE OFFER IS COMPLETED HERMAN'S SPORTING GOODS INCORPORATED SAID IT HAS EMERGED FROM CHAPTER ELEVEN BANKRUPTCY COURT PROTECTION THE REORGANIZATION PLAN FOR THE CARTERET N. J. SPORTING GOODS RETAILER WHICH WAS APPROVED BY A FEDERAL JUDGE IN AUGUST CALLS FOR GENERAL UNSECURED CREDITORS TO RECEIVE A COMBINATION OF CASH DEFERRED PAYMENTS AND EQUITY WITH AN ANTICIPATED VALUE IN EXCESS OF NINETY CENTS ON THE DOLLAR THE COMPANY WAS ACQUIRED BY A PRIVATE INVESTOR GROUP IN MARCH NINETEEN NINETY THREE AND FILED FOR BANKRUPTCY COURT PROTECTION SEVERAL DAYS LATER HERMAN'S ALSO SAID BANKAMERICA BUSINESS CREDIT A UNIT OF BANKAMERICA CORPORATION HAS PROVIDED IT WITH A THREE YEAR SIXTY MILLION DOLLAR REVOLVING CREDIT FACILITY THE COMPANY WHICH OPERATES ONE HUNDRED THREE STORES SAID IT WILL USE THE FUNDS IN PART TO ADD ABOUT FORTY NEW STORIES IN THE NEXT THREE YEARS EXSTAR FINANCIAL CORPORATION WHOSE OUTSIDE AUDITOR COOPERS and LYBRAND L. L. P. RESIGNED IN AN ACCOUNTING DISPUTE SAID IT RETAINED K. P. M. G. PEAT MARWICK L. L. P. EXSTAR OF SOLVANG CALIFORNIA SAID IT EXPECTS THE NEW AUDITOR TO RESOLVE THE APPROPRIATE ACCOUNTING TREATMENT OF SEVEN point NINE MILLION DOLLARS IN LOANS BY EXSTAR TO AN UNDERWRITING AFFILIATE AND OF AN ELEVEN MILLION DOLLAR PREFERRED STOCK INVESTMENT COOPERS and LYBRAND RESIGNED AS THE INSURANCE HOLDING COMPANY'S AUDITORS SEPTEMBER TWENTY FIRST BECAUSE OF A DISPUTE OVER THE VALUATION OF THESE TWO ASSETS IN AN INTERVIEW FRIDAY EXSTAR PRESIDENT STEVEN C. SHINN WOULDN'T SAY WHETHER K. P. M. G. PEAT MARWICK'S REVIEW IS EXPECTED TO SUSTAIN THE CURRENT VALUATION OF THE TWO ASSETS OR TO RESULT IN A SUBSTANTIALLY LOWER VALUATION WE DON'T KNOW THE OUTCOME OF THIS REAPPRAISAL quote SAID MR. SHINN MENTOR CORPORATION SAID IT AGREED TO PAY ONE point EIGHT MILLION DOLLARS IN CASH AND STOCK TO SETTLE A NINETEEN NINETY ONE SHAREHOLDER LAWSUIT ALLEGING VARIOUS FEDERAL SECURITIES LAW VIOLATIONS THE COMPANY DENIES ANY WRONGDOING OR LEGAL LIABILITY OF ANY KIND WE SETTLED IN ORDER TO AVOID THE COSTS AND RISKS ASSOCIATED WITH THIS TYPE OF LITIGATION SAID CHRISTOPHER J. CONWAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER MENTOR A SANTA BARBARA CALIFORNIA BASED MAKER OF MEDICAL AND SURGICAL DEVICES SAID THE SETTLEMENT WOULD CANCEL OUT MOST OF THE GAINS RECEIVED FROM OTHER LITIGATION IN THE SECOND QUARTER ENDED SEPTEMBER THIRTIETH THE SUIT WAS FILED IN APRIL NINETEEN NINETY ONE IN FEDERAL COURT IN LOS ANGELES BY SHAREHOLDER ODED WEISS THE SUIT CLAIMED MENTOR FAILED TO DISCLOSE MATERIAL FACTS ABOUT A PRODUCT MEXICAN BUS AND TRUCK MANUFACTURER CONSORCIO G. GRUPO DINA S. A. SAID ITS MOTOR COACH INDUSTRIES INTERNATIONAL INCORPORATED UNIT HAS AGREED TO SELL ITS TRANSIT BUS DIVISION TO NOVABUS OF AMERICA INCORPORATED TERMS WEREN'T RELEASED THE SALE EXPECTED TO CONCLUDE IN THE FOURTH QUARTER WILL AFFECT TRANSIT BUS MANUFACTURING OPERATIONS IN ROSWELL N. M. AND SCHENECTADY N. Y. DINA SAID NEW VALLEY CORPORATION SAID ITS PLAN OF REORGANIZATION FILED JOINTLY WITH ITS CREDITORS' COMMITTEE WAS APPROVED FRIDAY IN FEDERAL BANKRUPTCY COURT THE PLAN WILL BE MAILED TO CREDITORS AND SHAREHOLDERS IN PREPARATION FOR CONFIRMATION HEARINGS BEGINNING NOVEMBER FIRST IF THE COURT CONFIRMS THE PLAN THEN NEW VALLEY COULD EMERGE FROM BANKRUPTCY BY YEAR END NEW VALLEY'S PLAN INCLUDES THE SALE OF THE WESTERN UNION FINANCIAL SERVICES INCORPORATED UNIT TO ATLANTA'S FIRST FINANCIAL MANAGEMENT CORPORATION FOR ONE point ONE NINE BILLION DOLLARS AND TARGETS ABOUT TWO HUNDRED ELEVEN point SIX MILLION DOLLARS OF THOSE FUNDS TO NEW VALLEY'S UNDERFUNDED PENSION PLAN THE PARAMUS N. J. COMPANY SAID THAT FOLLOWING DISCUSSIONS WITH THE PENSION BENEFIT GUARANTY CORPORATION THE FEDERAL OVERSEER OF PENSION PLANS IT PROPOSED PUTTING ANOTHER FIFTY FIVE MILLION DOLLARS TOWARD FUNDING ITS PENSION LIABILITY THE P. B. G. C. SAID IT quote CONTINUES TO BE CONCERNED ABOUT THE FUTURE OF NEW VALLEY'S PENSION AND IT WILL CONSIDER TERMINATING AND TAKING OVER THE PLAN VERTEX PHARMACEUTICALS INCORPORATED CAMBRIDGE MASSACHUSETTS SAID IT BEGAN JOINT CLINICAL TESTING OF EXPERIMENTAL DRUGS TO TREAT BLOOD DISORDERS WITH B. A. S. F. A. G.'S RAVIZZA FARMACEUTICI COMPANY UNIT FINANCIAL TERMS OF THE COLLABORATION WEREN'T DISCLOSED THE BIOTECHNOLOGY CONCERN SAID IT AND RAVIZZA WILL TEST COMPOUNDS TO TREAT THE INHERITED HEMOGLOBIN DISORDERS BETA THALASSEMIA AND SICKLE CELL ANEMIA JOSHUA BOGER VERTEX'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COLLABORATION WILL PROVIDE US WITH A STRONG CLINICAL AND MARKETING PRESENCE IN ITALY WHERE THERE IS A CONCENTRATED POPULATION quote OF PATIENTS WITH BETA THALASSEMIA UNDER THE COLLABORATION THE COMPANIES INITIALLY WILL SHARE DATA FROM THEIR CLINICAL TRIALS VERTEX SAID THEY EXPECT TO COORDINATE SUBSEQUENT CLINICAL TRIALS AND TO NEGOTIATE A LICENSE AGREEMENT COVERING TESTED COMPOUNDS VERTEX ADDED IT IS NINE THIRTY AND UNDER THE CRYSTAL CHANDELIERS OF THE SILVER AGE RESTAURANT THE NIGHTLY ROSE AUCTION HAS BEGUN IT LOOKS AT FIRST LIKE A SLOW EVENING THE HIGHEST AND ONLY BID FOR THE LONG STEMMED PINK ROSE IS A MEASLY TWELVE DOLLARS BUT WATCHING THE PROCEEDINGS FROM A TABLE CLUTTERED WITH BLACK CAVIAR AND SALMON GENNADY LOGVINENKO DECIDES HE WANTS THE FLOWER WITH THE TWELVE DOLLAR BID STANDING HE PIPES UP THREE HUNDRED DOLLARS PEOPLE GASP EVEN THE AUCTIONEER WHO ONCE SOLD A ROSE FOR FIVE HUNDRED DOLLARS IS STARTLED BY A SECOND BID THAT HIGH MR. LOGVINENKO THINKING BETTER OF IT SAYS O. K. ONE HUNDRED DOLLARS WHEN A WOMAN DELIVERS THE FLOWER TO HIS TABLE MR. LOGVINENKO PULLS OUT A ROLL OF BILLS AS THICK AS HIS FIST AND PEELS OFF A HUNDRED FOR HER quote I REALLY WANTED THAT ROSE FOR MY FRIEND IT'S HER BIRTHDAY AND I DIDN'T WANT TO GET INTO A BIDDING WAR MR. LOGVINENKO SAYS BEAMING AT HIS DATE WHOSE LAST NAME HE DOESN'T KNOW I SPEND ABOUT FIVE HUNDRED DOLLARS TO ONE THOUSAND DOLLARS WHEN I GO OUT BUT THAT'S NOTHING I WOULDN'T CALL MYSELF RICH WHATEVER THE THIRTY EIGHT YEAR OLD OIL MAN CALLS HIMSELF THOUSANDS OF NEW SUCCESSFUL RUSSIAN BIZNESSMENI quote LIKE MR. LOGVINENKO HAVE BROUGHT MOSCOW SOMETHING IT HASN'T HAD IN GENERATIONS HEDONISTIC NIGHT LIFE THE NIGHT LIFE IS BIZARRE PARTICULARLY THE EVENINGS SPENT GOING FROM STRIP SHOW TO STRIP SHOW A LOT OF THE MALE PATRONS LOOK AS IF THEY HAVE DONE TIME MANY OF THEIR DATES LOOK LIKE CALL GIRLS THE CLUBS THEMSELVES RESEMBLE THE GAUDIEST OF HIGH SCHOOL PROMS THE POSHEST NIGHTCLUBS ARE VERY EXPENSIVE VERY MAFIA THEY'RE TOTALLY UNHIP SAYS ARTEMY TROITSKY A LOCAL POP CULTURE CRITIC LIZA MINNELLI WENT TO THEM WHEN SHE WAS IN TOWN WHAT OTHER PROOF DO YOU NEED THIS ISN'T NEW YORK NEW YORK BUT MOSCOW IS LIVELIER THAN IT WAS NOT LONG AGO A NIGHT OUT MEANT A DRUNKEN FEST AT THE HOTEL ROSSIYA DANCING THE LAMBADA NOW NIGHTCLUBS RESTAURANTS AND CASINOS IN ABUNDANCE ENTERTAIN THE NEW RICH MORE EVEN THAN THE DANCING AND DRINKING PEOPLE HERE ENJOY SPENDING MONEY OSTENTATIOUSLY THAT MAY BE THE WAY OF THE NOUVEAUX RICHES EVERYWHERE BUT THERE IS A DISTINCTLY RUSSIAN FLAVOR TO THE DECADENCE AFTER ECONOMIC REFORMS BEGAN A FEW PEOPLE BECAME VERY WEALTHY VERY QUICKLY OFTEN IN ORGANIZED CRIME OR ILLEGAL RAW MATERIALS EXPORTS THEY TEND TO BE YOUNG THE MANAGER OF THE ONE ROLLS ROYCE DEALERSHIP IN TOWN SAYS NEARLY ALL HIS CUSTOMERS ARE UNDER THIRTY MOST BELIEVE THE ECONOMY IS STILL SO VOLATILE THAT THEY COULD BE BANKRUPT IN A YEAR WITH MURDERS OF BUSINESSMEN RAMPANT MANY FIGURE THEY MAY NOT HAVE ALL THAT LONG TO LIVE THEMSELVES SO THEY ARE ENJOYING THEIR MONEY WHILE THEY HAVE IT quote THERE'S A MENTALITY HERE THAT SAYS JUST AS EASILY AS THE MONEY CAME IT WILL GO SAYS PAVEL TRUSHKO THE TWENTY ONE YEAR OLD PRESIDENT OF A RAIL FREIGHT COMPANY SO WHY NOT SPEND IT THE PLAY HARD AND LEAVE A GOOD LOOKING CORPSE CROWD GATHERS AT THE NIGHTCLUB ARLECCHINO IN THE LOBBY SEVERAL FLAK JACKETED POLICE CONFER THEY SAY A MAFIA GANG IS CELEBRATING A MEMBER'S BIRTHDAY AND THINGS COULD GET WILD A FEW CHUNKY MEN IN CREW CUTS PERHAPS STRAGGLERS FROM THE MAFIA BASH TEASE A DROOPY LEOPARD CUB CHAINED TO A TREE TRUNK SOME POSE WITH THE BEAST FOR A POLAROID PHOTO THAT COSTS THEM TWENTY FIVE DOLLARS OTHERS TRY OUT A VIRTUAL REALITY MACHINE CALLED ZONE HUNTER ONE CONSIDERS BUYING IT ON THE SPOT FOR FORTY THOUSAND DOLLARS THE MAFIA LIKES THIS GAME A LOT IT'S A STRESS RELIEVER quote SAYS RAYA BANDURA AN OWNER OF THE COMPANY IMPORTING THE MACHINES IT'S A WORLD WHERE THEY CAN'T GET KILLED OVER THE LOUDSPEAKER PATRONS ARE INVITED TO THE EROTIC PROGRAM IN THE THIRD FLOOR BAR IT TURNS OUT TO BE A STRIPTEASE THREE BLONDES IN GOLD LAME OUTFITS SASHAY THROUGH THE AUDIENCE IN VARIOUS STATES OF UNDRESS AFTER EACH PERFORMANCE A DWARF IN RUMPLED TAILS AND WITH A CIGARETTE DANGLING FROM HIS LIPS COMES OUT TO PICK UP THE DISCARDED CLOTHING ANDREI A METALS TRADER SITTING AT A FRONT TABLE CONSIDERS ARLECCHINO VERY CLASSY quote IT'S A NICE PLACE TO SEE PRETTY GIRLS WITH NICE FIGURES HE SAYS HIS GIRLFRIEND STIRS HER DRINK HOW MUCH DOES HE SPEND A NIGHT FIVE HUNDRED DOLLARS ONE THOUSAND DOLLARS HE ANSWERS I DON'T PAY ATTENTION TO PRICES quote THE PINNACLE OF MONEY BURNING DECADENCE IS UP AND DOWN A SUPPER CLUB IN THE FOREIGN MINISTRY PRESS CENTER THE MANAGEMENT SAYS SOME OF THE PROFIT GOES TO PENSIONS FOR OLD JOURNALISTS FOR JUST ABOUT EVERY MERCEDES BENZ IN THE PARKING LOT BELONGING TO A CUSTOMER THERE ARE TWO NEXT TO IT FOR HIS BODYGUARDS MOST PATRONS ARE MEMBERS WHO PAY TEN THOUSAND DOLLARS A YEAR TO BELONG AT THE ENTRANCE BURLY GUARDS SLINGING THE MACHINE GUNS UBIQUITOUS IN MOSCOW CLUBS SHEEPISHLY POKE AROUND IN WOMEN'S HANDBAGS EVERYONE MUST PASS THROUGH A METAL DETECTOR WEAPONS ARE CHECKED AT THE DOOR CASH ISN'T USED INSIDE THE CLUB A MAN HANDS CUSTOMERS A DEBIT CARD FOR WHICH THEY PAY FIVE HUNDRED DOLLARS IF YOU USE IT UP YOU CAN ALWAYS COME DOWN HERE AND ADD ANOTHER FIVE HUNDRED DOLLARS HE SAYS USING IT UP ISN'T HARD SITTING NEXT TO STUBBY FAKE PALMS THE FEW PATRONS ON A RAINY FRIDAY NIGHT WASH DOWN SEVENTEEN DOLLARS MARTINIS GOOD COGNAC GOES FOR FOUR HUNDRED DOLLARS A SNIFTER THE MENU OFFERS PORK LOIN WITH POTATOES A LA PUSHKIN WHICH THE WAITRESS PROMISES IS quote SOMETHING VERY SPECIAL SHE THEN DELIVERS FRIED POTATOES PRICED A LA CARTE AT EIGHTEEN DOLLARS THE MEAT OF COURSE IS EXTRA SUDDENLY THERE IS MUSIC TWO WOMEN BARELY DRESSED IN FAKE AEROFLOT UNIFORMS APPEAR ON STAGE SHIMMYING VIOLENTLY IN OTHER COUNTRIES STRIPTEASE IS SO MECHANICAL SAYS MIROSLAV MELANIK THE CLUB'S CO OWNER HERE IT'S MORE ARTISTIC quote THE STRIP SHOW VEERS TOWARD PERFORMANCE ART AS WOMEN HURL THEMSELVES AGAINST THE MIRRORED BACK WALL OF THE STAGE IT ENDS WITH A MAN AND A WOMAN ENGAGING IN SIMULATED SEX WHILE TAKING SWIGS FROM A BOTTLE OF JACK DANIEL'S REAL PERFORMANCE ART HAPPENS AT FASHION SHOWS AFTER ONE SUCH SHOW AT THE MANHATTAN EXPRESS DISCO A STRAITJACKETED MAN IN A LEATHER LAWN CHAIR LIP SYNCS A SONG IN ENGLISH WITH SUCH LYRICS AS I HATE YOU MAMA OR I THINK SO ANYWAY WILD EYED HE RIPS THE STRAITJACKET PICKS UP A KNIFE AND SLASHES HIS ARM FAKE BLOOD SPURTS EVERYWHERE HE PRETENDS TO GOUGE OUT HIS LEFT EYE THE CROWD GOES WILD IT WAS VERY BEAUTIFUL SAYS NATASHA AMBRON A NINETEEN YEAR OLD MODEL AFTERWARD quote IT WENT WELL WITH THE CLOTHES I THOUGHT A TAMER TIME CAN BE HAD AT THE SILVER AGE WHERE A PAT OF BUTTER COSTS A DOLLAR THAT HELPS PAY FOR THE GILT AND RED VELVET AMBIENCE PATRONS ORDER DISHES INCLUDING HERRING IN MAYONNAISE OVERCOAT AND TURKEY ROASTED BODILY quote THE ENTERTAINMENT BEGINS ABOUT SEVEN THIRTY A BAND STEPS OUT WITH BALALAIKAS OF DIFFERENT SIZES INCLUDING ONE AS BIG AS A STRING BASS IF PEOPLE IN THE AUDIENCE THEREFORE EXPECT TRADITIONAL RUSSIAN SONGS WHAT THEY GET IS NEW YORK NEW YORK THEN A JEWISH FOLK ENSEMBLE WITH BACKUP SINGERS IN FISHNET STOCKINGS BELTING OUT HAVA NAGILA GYPSIES WANDER ABOUT SINGING FOR MONEY MR. LOGVINENKO TIPS THEM WITH ONE OF HIS ONE HUNDRED DOLLAR BILLS NOW THAT HE HAS GONE HIGHBROW ARKADY VARTANYAN THE OWNER OF THE SILVER AGE IS PLANNING ANOTHER ESTABLISHMENT IN MOSCOW A THEME RESTAURANT BASED ON THE K. G. B. THE BOITE WILL BE ON LYUBYANKA SQUARE NEAR THE OLD K. G. B. HEADQUARTERS AND WAITERS WILL WEAR OLD K. G. B. UNIFORMS quote I SEE IT SERVING DISHES SUCH AS BRAINS OF THE ENEMY OF THE PEOPLE SAYS MR. VARTANYAN DURING THE EVENING PEOPLE WILL BE ARRESTED AND HAULED AWAY IT WILL BE VERY FUNNY MITSUBISHI BANK LIMITED ONE OF JAPAN'S LARGEST COMMERCIAL BANKS SAID IT INCURRED A SPECIAL LOSS OF ONE HUNDRED EIGHT BILLION YEN ONE point ONE BILLION DOLLARS IN THE FISCAL FIRST HALF ENDED SEPTEMBER THIRTIETH BECAUSE IT WROTE OFF A SERIES OF BAD LOANS THE BANK HAS TRANSFERRED SOME BAD LOAN ASSETS OF AFFILIATES DIAMOND MORTGAGE COMPANY AND DIAMOND FACTOR LIMITED TO THE COOPERATIVE CREDIT PURCHASING COMPANY AN ENTITY SET UP BY THE BANKING INDUSTRY AND THE GOVERNMENT TO LIQUIDATE BAD DEBT THE MOVE IS AN IMPORTANT STEP FOR MITSUBISHI WHICH LIKE MOST MAJOR JAPANESE BANKS IS STRUGGLING TO RID ITSELF OF BAD LOANS INCURRED DURING THE FINANCIAL BUBBLE quote OF THE LATE NINETEEN EIGHTIES MITSUBISHI SAID THE WRITEOFF WILL NOT AFFECT ITS EARNINGS FORECAST FOR THE FULL FISCAL YEAR ENDING MARCH NINETEEN NINETY FIVE BECAUSE IT IS COMPENSATING FOR SUCH LOSSES THROUGH SALES OF SOME STOCK HOLDINGS FOR THE FISCAL FIRST HALF THE BANK SAID IT WOULD POST TWENTY SEVEN BILLION YEN IN PARENT PRETAX PROFIT FIFTEEN BILLION YEN IN NET PROFIT AND ONE HUNDRED THIRTY BILLION YEN IN OPERATING PROFIT MITSUBISHI AND OTHER BANKS ARE SLATED TO RELEASE FISCAL FIRST HALF EARNINGS THIS MONTH THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM SEVENTY FIVE MILLION DOLLARS OF NOTES DUE OCTOBER ELEVENTH NINETEEN NINETY FIVE PRICED AT PAR TO YIELD SIX point OH ONE percent ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SIX BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY J. P. MORGAN SECURITIES INCORPORATED RAINY RIVER FOREST PRODUCTS INCORPORATED ONE HUNDRED TEN MILLION DOLLARS OF SENIOR SECURED NOTES DUE OCTOBER FIFTEENTH TWO THOUSAND ONE PRICED AS TEN point SEVEN FIVES AT NINETY NINE point SEVEN FIVE SEVEN TO YIELD TEN point EIGHT percent ACCORDING TO M. C. M. CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS AND IS RATED B. A. THREE BY MOODY'S INVESTORS SERVICE INCORPORATED AND DOUBLE B. MINUS BY STANDARD and POOR'S RATINGS GROUP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED TORCHMARK CAPITAL L. L. C. TWO HUNDRED MILLION DOLLARS OF CUMULATIVE MONTHLY INCOME PREFERRED SHARES PRICED WITH A NINE point ONE EIGHT percent DIVIDEND YIELD ACCORDING TO M. C. M. CORPORATEWATCH THE EIGHT MILLION SHARES WERE PRICED AT TWENTY FIVE DOLLARS EACH THE ISSUE WHICH IS NONCALLABLE FOR FIVE YEARS IS RATED SINGLE A THREE MOODY'S AND SINGLE A BY S. and P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS and COMPANY TORCHMARK CAPITAL IS A UNIT OF TORCHMARK CORPORATION COMMERCIAL NET LEASE REALTY INCORPORATED OFFERING OF FOUR MILLION COMMON SHARES PRICED AT TWELVE DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY INCORPORATED ZEIGLER COAL HOLDING COMPANY OFFERING OF TEN point FIVE MILLION COMMON SHARES PRICED AT FIFTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS COMMERZBANK OVERSEAS FINANCE N. V. GERMAN PARENT TWO HUNDRED MILLION DOLLARS OF SEVEN point FIVE percent EUROBONDS DUE NOVEMBER TENTH NINETEEN NINETY EIGHT AT ISSUE PRICE ONE HUNDRED ONE point THREE NINE FIVE VIA MORGAN STANLEY REOFFERED AT ONE HUNDRED point ONE TWO TO YIELD SEVEN point FOUR SIX percent A SPREAD OF TWENTY FIVE BASIS POINTS ABOVE COMPARABLE U. S. TREASURY GUARANTOR COMMERZBANK A. G. FEES ONE point FIVE SOCIETE GENERALE AUSTRALIA LIMITED FRENCH PARENT ONE HUNDRED MILLION AUSTRALIAN DOLLARS OF NINE point FIVE percent EUROBONDS DUE NOVEMBER TWENTY FOURTH NINETEEN NINETY SEVEN AT ISSUE PRICE ONE HUNDRED point NINE TWO FOUR VIA H. S. B. C. MARKETS AND A. B. N. AMRO BANK N. V. BONDS YIELD NINE point SEVEN THREE percent AFTER FEES OF ONE point FIVE GUARANTOR SOCIETE GENERALE KIDDER PEABODY PLANS TO CUT ABOUT FIFTEEN percent OF ITS STAFF AND GET OUT OF SEVERAL BUSINESSES POSSIBLY INCLUDING NONCORE OPERATIONS SUCH AS FOREIGN EXCHANGE STOCK OPTIONS AND FUTURESRELATED BUSINESSES THE RESTRUCTURING WILL TRIGGER A PRETAX CHARGE OF AS MUCH AS FORTY MILLION DOLLARS THE MOVE COULD SET THE STAGE FOR AN EVENTUAL SALE OF KIDDER BY GENERAL ELECTRIC ANALYSTS SAY THE U. S. AND JAPAN REACHED A TRADE ACCORD AS JAPAN MADE CONCESSIONS TO DEFLECT U. S. PRESSURE ON ITS AUTO INDUSTRY THE COUNTRIES RESOLVED DISPUTES ON GOVERNMENT PURCHASING PRACTICES INSURANCE WINDOW GLASS AND FORMULAS TO MEASURE PROGRESS A G. A. T. T. PANEL UPHELD U. S. FUEL EFFICIENCY LAWS FOR CARS TURNING BACK A CHALLENGE BY THE EUROPEAN UNION SEPARATELY THE HOUSE APPROVED A BILL DESIGNED TO GIVE THE U. S. LEVERAGE TO OPEN FOREIGN BANKING MARKETS MOTOROLA PLANS TO EXPAND INTO COMPUTER MANUFACTURING OFFERING WORKSTATIONS AND SERVERS USING THE NEW POWERPC MICROPROCESSOR IT DEVELOPED WITH I. B. M. AND APPLE COMPUTER GENERAL MOTORS AGREED TO HIRE SEVEN HUNDRED SEVENTY NINE WORKERS TO SETTLE A STRIKE AT ITS FLINT MICHIGAN PLANT DESPITE ITS PLEDGE TO HOLD BACK ON HIRING TO BRING COSTS DOWN M. C. I. IS EXPECTED AS EARLY AS THIS WEEK TO ASK ILLINOIS REGULATORS FOR PERMISSION TO OFFER LOCAL TELEPHONE SERVICE IN CHICAGO AND ITS SUBURBS STATE FARM RAISED ITS LOSS ESTIMATE FROM THE JANUARY CALIFORNIA EARTHQUAKE BY ONE THIRD TO NEARLY TWO BILLION DOLLARS THE LARGEST OF ANY INSURER WOOLWORTH DIRECTORS OUSTED CHIEF EXECUTIVE WILLIAM LAVIN AFTER LOSING CONFIDENCE IN HIS TURNAROUND PLANS PEOPLE CLOSE TO THE COMPANY SAID DISPOSABLE INCOME ROSE ZERO point FOUR percent IN AUGUST THE SEVENTH STRAIGHT GAIN WHILE CONSUMER SPENDING JUMPED ZERO point NINE percent TIME WARNER IS SEEKING A REPLACEMENT FOR ITS LONGTIME CHIEF FINANCIAL OFFICER BERT WASSERMAN CONAGRA'S CHIEF FINANCIAL OFFICER STEPHEN KEY HAS EMERGED AS A LEADING CANDIDATE THE JUSTICE DEPARTMENT HAS BEGUN AN ANTITRUST INVESTIGATION OF THE ON LINE LEGAL RESEARCH SERVICES BUSINESS PACIFIC SCIENTIFIC HAS DEVELOPED A DIMMABLE FLUORESCENT LIGHT IT PLANS TO UNVEIL THE NEW PRODUCT TODAY NEW STOCK AND BOND SALES FELL FIFTY ONE percent IN THE THIRD QUARTER TO ONE HUNDRED FORTY THREE point FIVE BILLION DOLLARS THE LOWEST IN ALMOST FOUR YEARS G. T. E. HAS UPGRADED ITS AIRFONE PHONE SERVICE SO PEOPLE ON THE GROUND CAN CALL PASSENGERS ON AN AIRLINER TOYS R. US PLANS A DISCOUNT COUPON STRATEGY THAT COULD SPARK A PRICE WAR DURING THE CHRISTMAS SEASON A JUDGE THREW OUT PART OF AN OFFICE OF THRIFT SUPERVISION RULE GIVING LOCAL DEPOSITORS PREFERENCE IN BUYING STOCK OF MUTUAL SAVINGS BANKS THAT CONVERT TO SHAREHOLDER OWNED INSTITUTIONS NIPPON TELEGRAPH and TELEPHONE WILL HOLD OFF ON FURTHER INVESTMENTS IN U. S. TELECOMMUNICATIONS COMPANIES BUT WILL STEP UP EFFORTS TO FIND U. S. PARTNERS FOR MULTIMEDIA SERVICES STOCKS VOLUME TWO HUNDRED NINETY ONE MILLION NINE HUNDRED ONE THOUSAND FIVE HUNDRED SEVENTY SHARES DOW JONES INDUSTRIALS THREE THOUSAND EIGHT HUNDRED FORTY THREE point ONE NINE OFF ELEVEN point FOUR FOUR TRANSPORTATION ONE THOUSAND FOUR HUNDRED NINETY ONE point FIVE NINE UP EIGHT point OH FIVE UTILITIES ONE HUNDRED EIGHTY ONE point FOUR FIVE UP ONE point FOUR FIVE BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX point SIX NINE UP ELEVEN point FOUR NINE COMMODITIES OIL EIGHTEEN DOLLARS AND THIRTY NINE CENTS A BARREL UP FORTY ONE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FIFTY THREE point OH FIVE OFF ONE point OH FIVE SPOT INDEX ONE HUNDRED FORTY SIX point SIX SEVEN OFF ONE point FIVE SEVEN DOLLAR NINETY NINE point ONE FIVE YEN UP ZERO point FIVE FIVE ONE point FIVE FIVE ONE FIVE MARKS UP ZERO point ZERO ZERO THREE ZERO IN A CROWDED WING OF A SEASIDE CONFERENCE HALL THE BALANCING ACT THAT HAS REVIVED BRITAIN'S LABOR PARTY FACES A CRITICAL TEST THIS WEEK MORE THAN ONE HUNDRED TWENTY FIVE GROUPS HAVE JAMMED INTO SEPARATE BOOTHS TO LOBBY THEIR CAUSE IN PERSON AT THE PARTY'S ANNUAL CONFERENCE THAT BEGINS HERE TODAY AND FOR THE FIRST TIME EVER THE USUAL CONTINGENT OF PRESSURE GROUPS FROM ANIMAL RIGHTS AND ANTINUCLEAR PEOPLE TO SOMETHING CALLED THE LEAGUE AGAINST CRUEL SPORTS WILL BE SHARING SPACE WITH SOME OF THE BIGGEST NAMES IN CORPORATE BRITAIN J. SAINSBURY P. L. C. THE GROCERY GIANT WILL BE HERE AS WILL BRITISH TELECOMMUNICATIONS P. L. C. AND TESCO P. L. C. A GROCERY AND RETAIL CHAIN ALL OF THEM ARE HOPING FOR A HIGH PROFILE PRESENCE IN FRONT OF A PARTY THEY ONCE IGNORED quote IT'S AN OPPORTUNITY FOR US TO HEAR WHAT THEY HAVE TO SAY SAYS BERNARD HUGHES GOVERNMENT RELATIONS MANAGER AT TESCO WHICH IS SPONSORING ITS FIRST CONFERENCE BOOTH THIS YEAR THE FACT THAT BUSINESS IS BOTHERING TO SHOW UP AT ALL IS A TESTIMONY TO HOW LABOR HAS CHANGED ANALYSTS SAY THE PARTY IN RECENT MONTHS HAS SHED MUCH OF THE ANTIBUSINESS HIGH SPENDING IMAGE THAT HAS DOGGED IT THROUGH RECENT ELECTIONS MORE IMPORTANTLY LABOR AND ITS MODERATE NEW LEADER TONY BLAIR HAVE MOVED SO FAR AHEAD IN THE POLLS THAT NO ONE NOT EVEN FORMER CRITICS CAN AFFORD TO STAY AWAY TONY BLAIR IS WALKING ON WATER SAYS ROBERT WORCESTER CHAIRMAN OF LONDON'S MORI A POLLING AND MARKET RESEARCH CONCERN HE IS OVERWHELMING quote BUT OUT IN THE STALLS PLEASING BOTH TESCO AND THE CRUEL SPORTS PEOPLE WON'T BE EASY THE SHIFT THAT HAS MADE THE PARTY PALATABLE TO BIG BUSINESS HAS LABOR'S LEFT WING GRUMBLING ABOUT A SELLOUT THEY FEAR THAT IN ITS ZEAL TO GET ELECTED LABOR'S LEADERSHIP HAS WEAKENED THE PARTY'S PLATFORM AND BLURRED THE ONCE CLEAR LINES BETWEEN LABOR AND JOHN MAJOR'S TORIES THERE'S A DESPERATION TO WIN BUT THERE'S GREAT DISILLUSIONMENT ABOUT HOW WE'RE GOING ABOUT IT SAYS PETER HAIN A MEMBER OF PARLIAMENT WHO HAS EMERGED AS AN UNOFFICIAL SPOKESMAN FOR LABOR'S DISGRUNTLED LEFT AT THIS WEEK'S CONFERENCE THE LEFTWINGERS ARE EXPECTED TO CHALLENGE MR. BLAIR ON THE PARTY'S NEW LOW TAXES PLEDGE AND ON AN APPARENT SHIFT AWAY FROM LABOR'S UNION BASE THEY ALSO WILL PRESS FOR A JUMP IN BRITAIN'S MINIMUM WAGE I THINK THERE MAY BE SOME HARD THINGS SAID BUT I DON'T THINK THERE WILL BE BLOOD ALL OVER THE FLOOR MR. HAIN PREDICTS SENSING TROUBLE PARTY LEADERS LATE LAST WEEK MOVED TO RESTATE THEIR MORE TRADITIONAL DOCTRINES GORDON BROWN LABOR'S ECONOMICS CZAR WHO ON TUESDAY HEADED AN ECONOMICS CONFERENCE THAT DECLARED LABOR'S quote TAX AND SPEND IMAGE DEAD BY WEEK'S END HAD SIGNIFICANTLY TOUGHENED HIS LINE MR. BROWN ATTACKED THE UNDESERVING RICH AND PAINTED THE TORIES AS THE PARTY OF PRIVILEGE AND EXCESS IN A SPEECH HERE TODAY MR. BROWN IS EXPECTED TO CALL FOR INCREASED PUBLIC DISCLOSURE ON EXECUTIVE PAY AND OTHER CORPORATE PERKS AND TO RECOMMEND SLASHING THE TAX RELIEF EXECUTIVES NOW CLAIM WHEN EXERCISING SHARE OPTIONS AND IN A PRECONFERENCE NEWS BRIEFING HERE SATURDAY MR. BLAIR HIMSELF DECLARED WE ARE NOT HERE TO BURY SOCIALISM quote JOHN PRESCOTT THE PARTY'S DEPUTY LEADER WHO IS A FAVORITE OF LABOR'S LIBERAL WING ALSO SUGGESTED OVER THE WEEKEND THAT THE PARTY THIS WEEK WILL HAVE DETAILS OF HOW IT WILL ACHIEVE ITS GOALS FOR FULL EMPLOYMENT THE PARTY SO FAR HAS BALKED AT PROVIDING SPECIFICS SAYING MORE DETAILS WILL COME CLOSER TO A GENERAL ELECTION A NATIONAL ELECTION ISN'T REQUIRED IN BRITAIN UNTIL NINETEEN NINETY SEVEN THE BACK AND FORTH MANEUVERING THOUGH HAS LEFT VOTERS AS WELL AS SOME OF THE PARTY'S FAITHFUL CONFUSED MORI'S MR. WORCESTER SAYS RECENT POLLS INDICATE VOTERS ARE FUZZY ABOUT WHERE LABOR STANDS ALEX SALMOND LEADER OF THE SCOTTISH NATIONAL PARTY SAID LABOR HAS EVOLVED INTO A SLIGHTLY LEFT LEANING VERSION OF THE TORIES BLAIR IS ADRIFT IN A SEA OF FUDGE MR. SALMOND TOLD HIS OWN PARTY CONFERENCE A WEEK AGO SOME OF THE CONFUSION ANALYSTS SAY MAY BE INTENTIONAL DESPITE ITS RECENT SUCCESS IN THE OPINION POLLS MORI SHOWS LABOR WOULD WIN FIFTY FOUR percent OF THE VOTE IF AN ELECTION WERE HELD TODAY VERSUS THE TORIES' TWENTY FIVE percent LABOR'S PAST FAILURES LURK JUST BELOW THE SURFACE MANY BRITONS STILL REMEMBER THE HIGH TAXES AND STRIKES OF THE LAST LABOR REGIME IN THE NINETEEN SEVENTIES NOT TO MENTION THE MORE RECENT EXAMPLES OF MISMANAGEMENT OF LOCAL LABOR COUNCILS IF THERE IS A DARK SIDE TO THE RECENT POLL RESULTS IT IS THAT ONLY A QUARTER OF BRITONS BELIEVE LABOR CAN DO A BETTER JOB THAN THE CONSERVATIVES IN RUNNING THE ECONOMY ANALYSTS SAY TOP PARTY OFFICIALS ARE GROWING INCREASINGLY CONCERNED THAT A CONTINUING TURNAROUND IN THE ECONOMY COULD BOOST MR. MAJOR'S STANDINGS NEARLY OVERNIGHT ALREADY UNEMPLOYMENT HAS RECENTLY DIPPED TO ITS LOWEST LEVEL IN YEARS AND BUSINESS SPENDING HAS BOUNCED BACK AFTER YEARS OF RECESSION THERE IS A CONSIDERABLE FRISSON OF ALARM RUNNING THROUGH MANY SECTIONS OF THE PARTY SAYS PATRICK DUNLEAVY PROFESSOR OF GOVERNMENT AT THE LONDON SCHOOL OF ECONOMICS quote THE FEAR HAS CREPT ON THEM VERY QUICKLY THAT THE GOVERNMENT MIGHT HAVE ACTUALLY GOT THE POLITICAL BUSINESS CYCLE RIGHT THIS TIME IN ADDITION TO AN IMPROVED ECONOMY THE TORIES ALSO CAN BOAST A DROP IN CRIME IN BRITAIN AND AN APPARENT SOLUTION TO THE STANDOFF IN NORTHERN IRELAND THE RESULT FOR LABOR IS THE PARTY MAY BE FORCED TO FIGHT TWO BATTLES AT ONCE REASSURING ITS OWN SUPPORTERS THAT IT HAS BEAT THE DEMONS OF THE PAST WITHOUT SURRENDERING ITS BASIC TENETS AND CONVINCING VOTERS THAT LABOR POLICIES ARE SUPERIOR TO A TORY REGIME THAT FINALLY SEEMS TO BE WORKING LABOR IS STILL IN A PROCESS OF DECONSTRUCTION SAYS PROFESSOR DUNLEAVY THE CHANGES WE'VE SEEN SO FAR ARE ONLY THE BEGINNING quote CASH AMERICA INTERNATIONAL INCORPORATED EXPECTS NET INCOME FOR THE THIRD QUARTER TO BE RIGHT ON TARGET WITH ANALYSTS' PROJECTIONS OF FIFTEEN CENTS A SHARE PRESIDENT DAN FEEHAN SAID IN THE YEAR EARLIER QUARTER THE PAWN SHOP OPERATOR REPORTED EARNINGS OF THREE point SEVEN MILLION DOLLARS OR THIRTEEN CENTS A SHARE ON REVENUE OF FIFTY FIVE MILLION DOLLARS CASH AMERICA IS HAPPY WITH ANALYSTS' FOURTH QUARTER PROJECTIONS OF TWENTY CENTS A SHARE MR. FEEHAN SAID IN AN INTERVIEW IN THE YEAR EARLIER PERIOD THE COMPANY HAD EARNINGS OF FOUR point EIGHT MILLION DOLLARS OR SEVENTEEN CENTS A SHARE ON REVENUE OF SIXTY FIVE point THREE MILLION DOLLARS THIRD QUARTER REVENUE IS EXPECTED TO BE UP TWELVE percent TO FOURTEEN percent FROM A YEAR EARLIER EXCEEDING FIRST HALF REVENUE GROWTH OF EIGHT percent TO NINE percent OVER LAST YEAR THE EXECUTIVE SAID MR. FEEHAN ATTRIBUTED THE THIRD QUARTER GROWTH TO LARGER STORE INVENTORIES AND AN INCREASE IN THE COMPANY'S LOAN ACCOUNTS WHICH ARE UP ON A PER STORE BASIS FROM YEAR AGO LEVELS THE RISE IN LOAN ACCOUNTS ALSO LED TO A RISE IN RETAIL SALES AS INDIVIDUALS FREQUENTLY PURCHASE ITEMS WHEN THEY RETURN TO A STORE TO PAY OFF THEIR LOANS HE SAID MR. FEEHAN SAID HE IS quote OPTIMISTIC ABOUT THE HOLIDAY SEASON AND AIMS FOR TWENTY percent SALES GROWTH OVER LAST YEAR CASH AMERICA PLANS TO EXPAND ITS JEWELRY PROMOTION DURING THE HOLIDAY SEASON TO ALL TWO HUNDRED NINETY ONE U. S. STORES UP FROM ONE HUNDRED SEVENTY LOCATIONS LAST YEAR LOOKING TOWARD NINETEEN NINETY FIVE FEEHAN SAID I'D LIKE TO BELIEVE WE CAN GET TWENTY percent GROWTH IN BOTH REVENUES AND EARNINGS THE COMPANY EXPECTS TO OPEN SIXTY STORES IN NINETEEN NINETY FIVE HE SAID PRESTIGE ISN'T NECESSARILY PROFITABLE EVERY QUARTER END SECURITIES FIRMS SCRAMBLE TO SELL LOTS OF NEW STOCKS AND BONDS IN A LAST DITCH EFFORT TO BOOST THEIR STANDINGS IN THE HOTLY CONTESTED UNDERWRITING TABLES BUT INCREASINGLY THE FIRMS THAT STACK UP THE BEST IN THE HIGH STAKES UNDERWRITING GAME DON'T NECESSARILY DO IT PROFITABLY AND THAT'S ESPECIALLY TRUE IN THE BOND UNDERWRITING BUSINESS THIS YEAR THESE INVESTMENT GRADE LEAGUE TABLES NO LONGER INDICATE A FIRM'S ABILITY TO ORIGINATE DISTRIBUTE AND TRADE CORPORATE SECURITIES quote SAYS PETER KARCHES HEAD OF WORLDWIDE FIXED INCOME AT MORGAN STANLEY and COMPANY UNLIKE THE OLD DAYS WHEN YOU HAD TO BE COMPETITIVE AND HAVE A GOOD CORPORATE RELATIONSHIP TODAY ALL YOU HAVE TO DO IS WRITE A CHECK TO GET BUSINESS ADDS JAMES FORESE HEAD OF DEBT SYNDICATE AT SALOMON BROTHERS INCORPORATED THE INVESTMENT BANKING ARM OF SALOMON INCORPORATED DOING A LOT OF BUSINESS DOESN'T NECESSARILY MEAN YOU ARE DOING IT PROFITABLY TO BE FAIR WE ARE ALL GUILTY OF BUYING BOND BUSINESS BUT SOME FIRMS DO IT TO A GREATER DEGREE THAN OTHERS FOR THE PAST THREE YEARS THE GREAT BULL MARKET IN BONDS HAS PRODUCED ENOUGH LUCRATIVE BUSINESS TO GO AROUND WALL STREET EVEN WHEN SECURITIES FIRMS HAD TO quote BUY DEALS OR PURCHASE BOND ISSUES AT PRICES THAT WOULD BE DIFFICULT AT BEST TO REALIZE IN THE RESALE MARKET THEY INEVITABLY WERE BAILED OUT BY A RALLYING TREASURY BOND MARKET AS INTEREST RATES FALL PRICES OF FIXED INCOME SECURITIES BOTH GOVERNMENT BONDS AND CORPORATE BONDS INCREASE IN VALUE BUT WITH THE TUMBLE IN THE BOND MARKET THIS YEAR SECURITIES FIRMS PARTICULARLY ONES WITH WEAKER CORPORATE RELATIONSHIPS LIKE LEHMAN BROTHERS INCORPORATED AND C. S. FIRST BOSTON INCORPORATED ARE BEING FORCED TO SCROUNGE AROUND TO FIND BONDS TO UNDERWRITE OFTEN THEY ARE SEEKING TO UNDERWRITE FIXED INCOME SECURITIES THAT PAY WOEFULLY SMALL FEES SUCH AS MEDIUM TERM NOTES FLOATING RATE SECURITIES OR LOW MARGIN DEALS FROM GOVERNMENT AGENCIES AND IT IS SHOWING ON THE BOTTOM LINE OF THEIR UNDERWRITING BUSINESS EVEN THOUGH THE LEHMAN BROTHERS HOLDINGS INCORPORATED AND C. S. HOLDING UNITS TOOK THE SECOND AND THIRD PLACE SPOTS RESPECTIVELY IN THE DOMESTIC DEBT UNDERWRITING CATEGORY DURING THE FIRST NINE MONTHS OF THIS YEAR THEY RANKED FOURTH AND SIXTH WHEN IT CAME TO DISCLOSED FEES FOR DEBT UNDERWRITING ACCORDING TO SECURITIES DATA COMPANY A NEWARK N. J. COMPANY THAT TRACKS CORPORATE FINANCE ACTIVITY LEHMAN HAS UNDERWRITTEN NEARLY SIXTY TWO BILLION DOLLARS IN DOMESTIC DEBT SO FAR THIS YEAR AND HAS EARNED ONE HUNDRED FORTY SIX point FOUR MILLION DOLLARS IN DISCLOSED FEES A COUPLE OF MILLION LESS THAN RIVAL MORGAN STANLEY WHICH UNDERWROTE ONLY THIRTY NINE point THREE BILLION DOLLARS IN DOMESTIC DEBT OR THIRTY SEVEN percent LESS THAN LEHMAN BUT EARNED MORE FOR IT DATA FROM SECURITIES DATA SHOWS SIMILARLY C. S. FIRST BOSTON HAS UNDERWRITTEN FIFTY EIGHT point FOUR BILLION DOLLARS IN DOMESTIC DEBT AND EARNED ONE HUNDRED FORTY ONE MILLION DOLLARS IN DISCLOSED FEES SO FAR THIS YEAR ACCORDING TO SECURITIES DATA BUT THAT IS FAR LESS THAN GOLDMAN SACHS and COMPANY WHICH UNDERWROTE FORTY FIVE point ONE BILLION DOLLARS IN DOMESTIC DEBT OR TWENTY THREE percent LESS THAN C. S. FIRST BOSTONBUT PULLED IN ONE HUNDRED SEVENTY SEVEN MILLION DOLLARS IN DISCLOSED FEES OFFICIALS AT LEHMAN AND C. S. FIRST BOSTON INSIST THAT THEIR LOW STANDING IN THE FEE CATEGORY ISN'T A SIGN THAT THEY ARE BUYING BOND DEALS TO PUMP UP THEIR STANDINGS IN THE UNDERWRITING TABLES WE DON'T MAKE RECKLESS INVESTMENTS IN MARKET SHARE AND FOR NO OTHER REASON THAN THIS ISN'T THE YEAR TO DO IT quote SAYS RICHARD DUBUSC MANAGING DIRECTOR IN DEBT CAPITAL MARKETS AT C. S. FIRST BOSTON RATHER OFFICIALS AT BOTH FIRMS CONTEND THAT THE FEE DISPARITY IS SIMPLY A FUNCTION OF DIFFERENT BUSINESS MIXES FIRMS LIKE MORGAN STANLEY AND GOLDMAN SACHS UNDERWRITE MORE JUNK BONDS WHICH CARRY BIGGER FEES THAN INVESTMENTGRADE CORPORATE DEBT SALES STILL EVEN WHEN JUNK BONDS ARE STRIPPED OUT LEHMAN AND C. S. FIRST BOSTON LAG ON FEES DURING THE FIRST NINE MONTHS OF THE YEAR LEHMAN BROTHERS RANKED FIFTH IN TERMS OF UNDERWRITING DOMESTIC NON CONVERTIBLE INVESTMENT GRADE CORPORATE DEBT EXCLUDING MEDIUM TERM NOTES AGENCY DEBT AND FLOATING RATE SECURITIES AND SIXTH WHEN IT CAME TO FEES IN THAT CATEGORY LEHMAN OFFICIALS SAY THE DISPARITY REFLECTS DIFFERENCES IN MATURITY AND STUCTURE OF THE SECURITIES IT UNDERWRITES AND THE TYPES OF ISSUERS IT SERVICES STILL WHILE A LEHMAN OFFICIAL POINTS OUT THE FIRM'S FRANCHISE HAS IMPROVED HE CONCEDES THAT IT NEEDS TO BE STRENGTHENED PARTICULARLY IN THE CORPORATE AREA MEANWHILE C. S. FIRST BOSTON RANKED THIRD IN THE UNDERWRITING OF DOMESTIC NONCONVERTIBLE INVESTMENT GRADE CORPORATE DEBT DURING THE FIRST NINE MONTHS OF THIS YEAR AND FOURTH IN FEES IN THE THIRD QUARTER THE GAP BETWEEN FEES AND UNDERWRITING BUSINESS WAS MORE GLARING C. S. FIRST BOSTON UNDERWROTE THREE point ONE BILLION DOLLARS OF DOMESTIC NON CONVERTIBLE CORPORATE DEBT EXCLUDING MEDIUM TERM NOTES AGENCY DEBT AND FLOATING RATE SECURITIES IN THE THIRD QUARTER MAKING IT THE SECOND RANKED UNDERWRITER IN THIS CATEGORY STILL C. S. FIRST BOSTON ONLY EARNED TEN point NINE MILLION DOLLARS IN FEES FORTY TWO percent LESS THAN MORGAN STANLEY THE FOURTH RANKED UNDERWRITER IN THIS CATEGORY AND WAS THE FIFTH RANKED FEE EARNER THE POSTED FEES ARE NOT NECESSARILY CORRELATED TO SOMEONE'S MARKET SHARE RANK SAYS MR. DUBUSC OF FIRST BOSTON LIKE THE LEHMAN OFFICIAL MR. DUBUSC SAYS DIFFERENCES IN MATURITY CREDIT RISK TYPES OF SECURITIES SUCH AS FIXED RATE DEBT VERSUS FLOATING RATE DEBT AND BUSINESS PRACTICES INCLUDING THE TENDENCY OF SOME PUBLICLY TRADED FIRMS TO UNDERWRITE THEIR OWN DEBT SECURITIES CAN ACCOUNT FOR THE DISPARITY BETWEEN MARKET SHARE AND FEES FIRST BOSTON FOR INSTANCE TENDS TO UNDERWRITE MORE FLOATING RATE ISSUES AND DEBT WITH SHORTER MATURITIES THAT PAY SMALLER FEES THAN SELLING LONG TERM CORPORATE BONDS LEHMAN OFFICIALS MEANWHILE ARGUE THAT THEY ARE A BIG UNDERWRITER OF MEDIUM TERM NOTES AND AGENCY ISSUES WHERE THE TRADITIONAL FEES CHARGED ARE LESS THAN FOR CORPORATE ISSUES STILL SOME MARKET PLAYERS REMAIN UNCONVINCED THEY SAY ONE OF THE REASONS FIRMS LIKE LEHMAN AND C. S. FIRST BOSTON ARE SEEING SUCH A MARKED DIVERGENCE BETWEEN THEIR POSTED FEES ON SELLING DEBT SECURITIES AND THEIR UNDERWRITING RANKINGS IS THAT THIS YEAR'S DEBACLE IN THE BOND MARKET IS HEIGHTENING THE DISPARITIES BETWEEN SECURITIES FIRMS WITH STRONG CORPORATE TIES AND THOSE WITH WEAK ONES THERE IS SO LITTLE NEGOTIATED CORPORATE MARKET SHARE TO GO AROUND THAT SOME FIRMS ARE HAVING TO BUY IT SAYS THE HEAD OF ONE WALL STREET SYNDICATE DESK ONEX CORPORATION SAID IN TORONTO THAT IT AGREED TO PURCHASE SIXTEEN point FIVE MILLION CANADIAN DOLLARS TWELVE point THREE MILLION U. S. DOLLARS OF SIX point FIVE percent UNSECURED CONVERTIBLE DEBENTURES OF ALLIANCE COMMUNICATIONS CORPORATION MATURING MARCH THIRTY FIRST TWO THOUSAND TWO ALLIANCE PLANS TO USE THE FUNDS FOR FILM AND TELEVISION PRODUCTION AND FOR ACQUISITIONS IN THE FIELDS OF ANIMATION AND MUSIC PUBLISHING ROBERT LANTOS CHAIRMAN SAID IN AN INTERVIEW THE COMPANY IS LOOKING FOR ACQUISITIONS IN THE U. S. CANADA AND EUROPE HE ADDED THE AGREEMENT REPRESENTS A NEW BUSINESS FOR ONEX A HOLDING COMPANY THAT HAS INTERESTS IN FOOD SERVICES MANUFACTURING AUTO PARTS AND COURIERS THE DEBENTURES ARE CONVERTIBLE BY ONEX AFTER THE FIRST YEAR INTO ALLIANCE COMMON SHARES AT NINETEEN CANADIAN DOLLARS A SHARE THE U. S. JAPAN TRADE AGREEMENT BROKERED THIS WEEKEND REFLECTS AN IMPLICIT TRADE OFF JAPAN WAS READY TO MAKE SURPRISINGLY STEEP CONCESSIONS ON A NUMBER OF FRONTS IN ORDER TO CONTAIN U. S. PRESSURE ON ITS FLAGSHIP AUTO INDUSTRY AS A RESULT JAPAN MADE CONCESSION AFTER CONCESSION IN TWENTY HOURS OF GRUELING TALKS TO RESOLVE DISPUTES ON GOVERNMENT PURCHASING PRACTICES INSURANCE WINDOW GLASS AND FORMULAS TO MEASURE PROGRESS BUT TOKYO HELD FIRM AGAINST U. S. PRESSURE THAT IT BROADLY OPEN THE JAPANESE AUTO MARKET AND ASSURE THAT JAPANESE CAR MAKERS IN THE U. S. CONTINUE TO INCREASE PURCHASES OF U. S. MADE PARTS IN THE END WITH THE U. S. ABLE TO ANNOUNCE FOUR SEPARATE DEALS WASHINGTON FELT OBLIGED TO GO EASY ON THE AUTO SECTOR LIMITING POTENTIAL RETALIATION TO THE NARROWEST POSSIBLE AREA THE U. S. SAID IT WOULD LAUNCH A ONE YEAR INVESTIGATION INTO SALES OF AUTO PARTS TO JAPANESE CONSUMERS AN ACTION THAT COULD EVENTUALLY LEAD TO SANCTIONS TOUGHER ACTION ON JAPANESE AUTOS AND AUTO PARTS SAID U. S. TRADE REPRESENTATIVE MICKEY KANTOR WOULD quote HAVE BEEN THE WRONG SIGNAL AT THE WRONG TIME THE OUTCOME ALSO REFLECTS INTERNAL JAPANESE POLITICAL WRANGLING WITH TWO PROMINENT LIBERAL DEMOCRATIC PARTY OFFICIALS TRADE MINISTER RYUTARO HASHIMOTO AND FOREIGN MINISTER YOHEI KONO TRYING TO DEMONSTRATE THAT THE L. D. P. UNLIKE ITS REFORM PARTY RIVALS COULD MANAGE DELICATE RELATIONS WITH THE U. S. IN ADDITION U. S. OFFICIALS SAID THE TWO JAPANESE POLITICIANS EACH OF WHOM IS CONSIDERED A POTENTIAL CANDIDATE FOR PRIME MINISTER COMPETED WITH EACH OTHER TO SHOW WHO COULD BEST DEAL WITH THE AMERICANS THE RESULT OF ALL THIS WRANGLING WAS DEEPER COMMITMENTS THAN THE U. S. EXPECTED FOR INSTANCE MR. KONO MADE THE KEY DEALS WITH U. S. NEGOTIATORS OVER GOVERNMENT PURCHASES AND MEASUREMENT FORMULAS AND ALSO OVERSAW THE PRODUCTIVE INSURANCE NEGOTIATIONS WITH TIME RUNNING OUT ON SATURDAY MORNING THOUGH MR. HASHIMOTO HADN'T PRODUCED ANYTHING WHICH LED THE MINISTER OF INTERNATIONAL TRADE AND INDUSTRY TO PUSH HARD FOR AN AGREEMENT ON WINDOW GLASS WITH THAT AGREEMENT IN HAND MR. HASHIMOTO COULD HANG TOUGH ON AUTOS LATER TELLING JAPANESE REPORTERS THAT THE U. S. WANTED JAPAN TO ABOLISH AN AUTO INSPECTION SYSTEM THAT SAVES THE LIVES OF JAPANESE DRIVERS COMMERCE UNDERSECRETARY JEFFREY GARTEN WHO NEGOTIATED OVER AUTOS DISMISSED THAT CLAIM THE U. S. WANTED BROAD DEREGULATION OF JAPANESE INSPECTION SYSTEMS HE SAID WITH AN EXPERT PANEL TO ASSESS WHETHER PARTICULAR RULES WERE DESIGNED FOR SAFETY OR TO BLOCK FOREIGN IMPORTS THAT WAS NECESSARY TO ENSURE THAT EXAGGERATED CLAIMS ABOUT SAFETY COULDN'T BE USED TO KEEP OUT SUPPLIERS HE SAID IN MADRID U. S. TREASURY OFFICIALS GATHERED FOR A MEETING OF WORLD FINANCE MINISTERS AND CENTRAL BANKERS WERE VISIBLY RELIEVED BY THE ELEVENTH HOUR AGREEMENT THEY HAD BEEN BRACING FOR A SHARP DROP IN THE VALUE OF THE DOLLAR HAD THE TALKS IN WASHINGTON FAILED NOW WITH THE ACCORD HAVING BEEN REACHED CURRENCY TRADERS AND ANALYSTS SAID THE DOLLAR MIGHT RECEIVE A SLIGHT BOOST AGAINST THE YEN BUT THEY SAID THEY DOUBT THAT THE AGREEMENT WILL TRIGGER A SUSTAINED RALLY THE U. S. AND JAPAN CUT FOUR SPECIFIC TRADE AGREEMENTS INVOLVING INSURANCE FLAT GLASS AND GOVERNMENT PURCHASES OF MEDICAL EQUIPMENT AND TELECOMMUNICATIONS EQUIPMENT IN INSURANCE JAPAN AGREED TO INTRODUCE A BROKER SYSTEM EASE REGULATORY APPROVALS ON NEW PRODUCTS AND REFRAIN FROM DEREGULATING AREAS IN WHICH FOREIGN COMPANIES ARE STRONG CALLED THE THIRD SECTOR quote UNTIL IT DEREGULATES AREAS OF JAPANESE DOMINANCE JAPANESE OFFICIALS CALLED THE INSURANCE DEAL AN AGREEMENT IN PRINCIPLE BECAUSE THE TWO SIDES HADN'T YET DECIDED HOW LONG IT WILL BE BEFORE JAPANESE FIRMS CAN COMPETE FULLY IN THE THIRD SECTOR WHICH INCLUDES PERSONAL ACCIDENT AND MEDICAL INSURANCE IN MEDICAL EQUIPMENT JAPAN AGREED TO PROMOTE FOREIGN EQUIPMENT TO GOVERNMENT PURCHASING AGENTS AND TO EVALUATE PURCHASING DECISIONS ON THE BASIS OF GREATEST OVERALL VALUE RATHER THAN LOWEST BID U. S. COMPANIES COMPLAIN THAT THEIR HIGHER TECH HIGHER COST EQUIPMENT IS DISADVANTAGED BY THE CURRENT SYSTEM IN TELECOMMUNICATIONS JAPAN AGREED TO SEPARATE DEALS TO COVER THE GOVERNMENT'S PURCHASES AND THOSE BY NIPPON TELEGRAPH and TELEPHONE CORPORATION WHICH THE JAPANESE GOVERNMENT IS SLOWLY PRIVATIZING N. T. T. IS PLEDGED TO PROVIDE BETTER INFORMATION TO FOREIGN BIDDERS EARLIER IN THE BID PROCESS AND TO GIVE FOREIGN BIDDERS THE CHANCE TO COMMENT ON BIDS BEFORE THEY ARE ISSUED IN BOTH THE MEDICAL AND TELECOMMUNICATIONS AREA JAPAN ALSO AGREED TO A U. S. PLAN TO EVALUATE WHETHER ACCESS TO THE JAPANESE MARKET IS IMPROVING UNDER THE PLAN THE TWO SIDES WOULD ANNUALLY GAUGE THE quote PROGRESS JAPAN WAS MAKING IN BOTH SALES AND MARKET SHARE OF FOREIGN GOODS IN ORDER TO ACHIEVE OVER A FOUR YEAR PERIOD A SIGNIFICANT INCREASE IN IMPORTS THE MOST RECENT YEAR WOULD BE COMPARED WITH RECENT TRENDS quote PRESUMABLY THE PREVIOUS FEW YEARS IN THE MEDICAL AND TELECOMMUNICATIONS SECTOR TO JUDGE ANNUAL PROGRESS FOR FIFTEEN MONTHS JAPAN HAD RESISTED THAT FORMULATION CONTENDING THAT IT AMOUNTED TO A GOVERNMENT GUARANTEE THAT IMPORT PURCHASES WOULD INCREASE JAPANESE OFFICIALS USED THIS ARGUMENT AS THE CENTERPIECE FOR THEIR CAMPAIGN TO PORTRAY THE U. S. AS A TRADE BULLY BOUND ON INTERFERING WITH THE JAPANESE MARKET DURING THE WEEKEND NEGOTIATIONS THE TWO SIDES DICKERED OVER EACH PHRASE AND CONJUNCTION IN THE TWO RELEVANT PARAGRAPHS UNTIL THE JAPANESE ESSENTIALLY CAVED IN EXPLAINING AWAY THE CONCESSION TRADE MINISTER HASHIMOTO SAID I HATE SUCH METAPHYSICAL DEBATES BUT THE AMERICANS LIKE THEM MR. KONO THE FOREIGN MINISTER SAID THE AGREEMENT ON CRITERIA APPLIES ONLY TO GOVERNMENT PURCHASES ACCORDING TO JAPANESE NEWS REPORTS NOT TO PRIVATE SECTOR DISCUSSIONS UNDER THE SO CALLED FRAMEWORK TALKS IT ISN'T CLEAR FOR INSTANCE WHETHER THE EVALUATION PROCESS INCLUDES N. T. T. MR. KANTOR THE U. S. TRADE REPRESENTATIVE STRESSED THAT THE U. S. HOPED THAT JAPAN WOULD USE THE INDICATORS AS A TOOL TO PROMOTE EXPORTS BUT HE SUGGESTED THAT IF JAPAN DOESN'T SHOW PROGRESS IT COULD LEAD TO U. S. TRADE PRESSURE AND SANCTIONS ARE THEY POTENTIALLY ENFORCEABLE MR. KANTOR ASKED RHETORICALLY quote THE ANSWER IS OF COURSE YES IN WINDOW GLASS THE TWO SIDES SAID THEY REACHED AN AGREEMENT IN PRINCIPLE TO OPEN THE MARKET TO FOREIGN SUPPLIERS AND WOULD TAKE THIRTY DAYS TO CONCLUDE THE DEAL IF A FINAL AGREEMENT ISN'T REACHED THE U. S. WILL PURSUE A TRADE SANCTION CASE AGAINST JAPAN ACCORDING TO A STATEMENT BY GUARDIAN INDUSTRIES CORPORATION A GLASS MAKER IN NORTHVILLE MICHIGAN THAT IS CLOSE TO THE TRADE REPRESENTATIVE'S OFFICE BUT MR. KANTOR DIDN'T ISSUE ANY THREAT IN THE AUTO AND AUTO PARTS AREA THE U.SS AND JAPAN REMAINED AT LOGGERHEADS WITH LITTLE PROSPECT FOR A RESOLUTION JAPANESE NEGOTIATORS REMAIN CONVINCED THAT THE PROBLEM WILL EVENTUALLY RESOLVE ITSELF U. S. AUTO SALES IN JAPAN THOUGH TINY ARE GROWING RAPIDLY JAPANESE CAR MAKERS IN THE U. S. ARE INCREASING THEIR PURCHASES OF U. S. MADE PARTS WITH THE IMPASSE THE U. S. LIMITED ITS RESPONSE TO LAUNCHING A TRADE SANCTION CASE ON A RELATIVELY SMALL SLICE OF THE JAPANESE MARKET REPLACEMENT PARTS THE U. S. CONTENDS THAT JAPAN'S STRICT AUTOMOBILE INSPECTION SYSTEM KNOWN IN JAPANESE AS THE SHAKEN ACTS TO BLOCK FOREIGNERS FROM THE FORTY BILLION DOLLAR MARKET U. S. COMPANIES HAVE ONLY ONE point TWO percent OF THE MARKET FOREIGN COMPANIES OVERALL HAVE TWO point SIX percent THE U. S. CALCULATES NEVERTHELESS BY SPARING LARGER PARTS OF THE JAPANESE AUTO BUSINESS THE U. S. PROBABLY FORESTALLED A SHARP EMOTIONAL REACTION FROM TOKYO THAT COULD HAVE HARMED THE REST OF THE TRADE TALKS AND SUNK THE DOLLAR WE CAN'T ACCEPT THE U. S. GOVERNMENT ATTEMPT TO CREATE A FAVORABLE NEGOTIATING SITUATION AGAINST A BACKDROP OF SANCTIONS COMPLAINED TATSURO TOYODA PRESIDENT OF TOYOTA MOTOR CORPORATION AND CHAIRMAN OF THE JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION BUT JAPANESE NEGOTIATORS SAID THEY WOULD CONTINUE THEIR BEST EFFORTS quote TO RESOLVE THE DISPUTE IN THE U. S. ANDREW CARD PRESIDENT OF THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAID YOU WON'T HEAR THREE CHEERS FROM THE AUTO INDUSTRY OVER THE TRADE DEALS EVEN SO HE SAID THE INDUSTRY WOULDN'T TRY TO BLOCK IMPORTS BY FILING A SUIT CONTENDING THAT JAPANESE MANUFACTURERS ARE DUMPING AUTOS AT PRICES BELOW THOSE AT HOME HAD THE TALKS BROKEN DOWN U. S. OFFICIALS SAID THEY WERE PREPARED FOR A LONG LIST OF ACTIONS BARRING JAPANESE COMPANIES FROM BIDDING ON FEDERAL PURCHASES OF TELECOMMUNICATIONS MEDICAL EQUIPMENT AND OTHER EQUIPMENT OUTSIDE THE DEFENSE AREA AND STARTING TRADE SANCTION PROCEEDINGS ON WINDOW GLASS AND AUTOMOBILE REPLACEMENT PARTS WITH THE AGREEMENTS A BITTER TRADE BATTLE WAS AVOIDED AS WELL AS A THREAT TO FINANCIAL MARKETS THE U. S. EVEN DECIDED AGAINST CITING ANY COUNTRY'S TRADE PRACTICES FOR POSSIBLE SANCTIONS UNDER A TRADE LAW PROVISION KNOWN AS SUPER THREE HUNDRED ONE ALTHOUGH MR. KANTOR SAID HE WOULD ISSUE A quote WATCH LIST TODAY THE RESOLUTION IS BOUND TO BOLSTER PRESIDENT CLINTON'S STANDING IN INTERNATIONAL ECONOMIC CIRCLES AND GIVE A BOOST TO THE CURRENT JAPANESE GOVERNMENT IN TOKYO ANALYSTS FAVORABLY COMPARED THE RECENT AGREEMENTS WITH THE FAILURE LAST FEBRUARY OF A REFORMIST COALITION LED BY PRIME MINISTER MORIHIRO HOSOKAWA WHICH REJECTED U. S. DEMANDS AND BROKE OFF TALKS FOR NEARLY THREE MONTHS IT WAS GOOD THAT THE NEGOTIATIONS DIDN'T CRASH IN A SINGLE STROKE AS WHEN MR. HOSOKAWA WAS PRIME MINISTER SAID HIDEO SHINOZAWA A PROFESSOR AT GAKUSHUIN UNIVERSITY TRADE TALKS RESULTED IN CONCESSIONS BY JAPAN IN FOUR SPECIFIC AREAS A SPAT BETWEEN RICH AND POOR COUNTRIES OVER THE CREATION OF NEW RESERVES FOR GOVERNMENTS AROUND THE WORLD MARRED AN OTHERWISE UPBEAT GATHERING OF FINANCE MINISTERS HERE THE SPECIFIC POINT OF DISPUTE IS ARCANE HOW MANY NEW SPECIAL DRAWING RIGHTS A KIND OF PAPER GOLD SHOULD THE INTERNATIONAL MONETARY FUND CREATE IF ANY BUT IT IS ALSO A SYMPTOM OF THE INTENSIFYING COMPETITION FOR CAPITAL AROUND THE GLOBE AS WELL AS A REFLECTION OF THE PERSONALITY POLITICS OF INTERNATIONAL ECONOMICS THE CAPITAL SHORTAGE IS AMONG THE BIGGEST THREATS TO AN OTHERWISE ROSY OUTLOOK FOR THE GLOBAL ECONOMY SPEAKING AFTER A WEEKEND MEETING OF FINANCE MINISTERS FROM THE GROUP OF SEVEN INDUSTRIAL COUNTRIES TREASURY SECRETARY LLOYD BENSTEN SAID THE WORRISOME RISE IN GLOBAL LONG TERM INTEREST RATES IS TO SOME EXTENT CAUSED BY AN INCREASING GAP BETWEEN WHAT IS BEING SAVED AROUND THE WORLD AND THE GROWING DEMAND FOR INVESTMENT CAPITAL quote THE GROUP OF SEVEN COMPRISES THE U. S. CANADA BRITAIN FRANCE GERMANY ITALY AND JAPAN CREATING MORE SPECIAL DRAWING RIGHTS KNOWN AS S. D. R.S WON'T ADD TO THE TOTAL SUPPLY OF CAPITAL BUT IT DOES AT THE MARGIN ALTER WHICH COUNTRIES GET THAT CAPITAL CASH STRAPPED COUNTRIES CAN USE THEIR NEW S. D. R.S TO BORROW DOLLARS THAT THEY MIGHT NOT OTHERWISE BE ABLE TO OBTAIN AND DO SO WITHOUT ANY CONDITIONS AND AT INTEREST RATES BELOW WHAT THE MARKETS WOULD DEMAND IF THE COUNTRIES HAVE ACCESS TO THE MARKETS AT ALL A U. S. OFFICIAL DESCRIBES S. D. R.S AS A GLOBAL OVERDRAFT FACILITY THAT ALLOWS COUNTRIES TO BUY MORE IMPORTS THAN THEY OTHERWISE COULD THE INTERNATIONAL MONETARY FUND'S POLICY SETTING INTERIM COMMITTEE ENDED A DAY LONG TUSSLE OVER HOW MANY S. D. R.S TO ADD AND TO WHOM TO GIVE THEM WITHOUT REACHING A COMPROMISE DEFERRING A DECISION FOR SIX MONTHS AT LEAST THE DEVELOPING WORLD'S APPETITE FOR CAPITAL ISN'T NEW BUT IT'S GROWING RAPIDLY THE I. M. F. SAYS THAT BETWEEN NINETEEN NINETY AND NINETEEN NINETY THREE AN AVERAGE OF NINETY FOUR BILLION DOLLARS A YEAR IN CAPITAL WENT TO DEVELOPING COUNTRIES TEN TIMES THE LEVEL OF THE NINETEEN EIGHTY THREE TO NINETEEN EIGHTY NINE PERIOD THE BROADENING RECOVERY IN INDUSTRIALIZED COUNTRIES IS NOW ADDING TO THE DEMAND FOR CAPITAL THAT COMBINED WITH FEARS OF ACCELERATING INFLATION HAS DRIVEN UP LONG TERM INTEREST RATES BY TWO PERCENTAGE POINTS IN INDUSTRIALIZED ECONOMIES SINCE THE BEGINNING OF THE YEAR THE ONLY WAY TO SATISFY A GROWING DEMAND FOR CAPITAL IS TO INCREASE GLOBAL SAVINGS SO G. SEVEN FINANCE MINISTERS AND CENTRAL BANKERS SPENT MUCH OF THE WEEKEND TELLING EACH OTHER HOW IMPORTANT IT WAS FOR THEM TO REDUCE THEIR GOVERNMENT DEFICITS WHICH ADDS TO THE SAVINGS AVAILABLE FOR PRIVATE INVESTMENT IF DEVELOPED COUNTRIES ARE CONCERNED ABOUT A SHORTAGE OF CAPITAL DEVELOPING COUNTRIES ARE DOUBLY SO THIS COMPETITION FOR CAPITAL IS HAVING A DISCIPLINARY EFFECT ON POLICY MAKERS FROM THESE ECONOMIES UNLESS WE BECOME INVESTOR FRIENDLY WE ARE NOT GOING TO BE ABLE TO COMPETE WITH VIETNAM THAILAND WHATEVER SAYS SOUTH AFRICA'S NEW FINANCE MINISTER CHRISTO LIEBENBERG HERE TO BOOST CONFIDENCE IN THE ECONOMIC POLICIES OF THE NEW GOVERNMENT THE MINUTIAE OF THE S. D. R. DISPUTE WERE PARTLY DRIVEN BY THE PERSISTENCE OF I. M. F. MANAGING DIRECTOR MICHEL CAMDESSUS THE FORMER CHIEF OF THE FRENCH CENTRAL BANK HE HAS BEEN PRESSING HARD FOR THE CREATION OF AN ADDITIONAL FIFTY FOUR BILLION DOLLARS WORTH THIRTY SIX BILLION S. D. R.S WHICH WOULD MORE THAN DOUBLE THE THIRTY TWO BILLION DOLLARS OUTSTANDING THE U. S. GERMANY AND OTHER BIG COUNTRIES RESISTED BUT LATELY AGREED TO CREATE TWENTY FOUR BILLION DOLLARS WORTH SIXTEEN BILLION S. D. R.S PRIMARILY FOR THE BENEFIT OF RUSSIA AND THE THREE DOZEN OTHER COUNTRIES THAT HAVE JOINED THE I. M. F. IN THE PAST FIFTEEN YEARS HOPING TO ATTRACT THE SUPPORT OF DEVELOPING COUNTRIES SUCH AS BRAZIL AND INDIA THE U. S. AND ITS PARTNERS CONTRIVED A FORMULA THAT WOULD GIVE THEM SOME MORE S. D. R.S AS WELL BUT MR. CAMDESSUS CONTINUED TO WAGE HIS UNRELENTING CAMPAIGN WHICH AT ONE POINT LED TO A PRIVATE SHOWDOWN BETWEEN HIM AND MR. BENTSEN ON SATURDAY NIGHT THE GROUP OF SEVEN INCLUDING MR. CAMDESSUS'S LAST ALLY IN THE GROUP HIS NATIVE FRANCE STRONGLY ENDORSED A TAKE IT OR LEAVE IT PLAN FOR TWENTY FOUR BILLION DOLLARS MORE BY RECRUITING FRANCE THE G. SEVEN HOPED TO AVOID A SHOWDOWN AT SUNDAY'S MEETING OF THE I. M. F. POLICY SETTING INTERIM COMMITTEE UNDER THE G. SEVEN FORMULA ABOUT TWELVE BILLION DOLLARS OF S. D. R.S WOULD GO TO DEVELOPED COUNTRIES AND ROUGHLY ANOTHER SIX BILLION DOLLARS TO FORMERLY COMMUNIST COUNTRIES LEAVING ONLY SIX BILLION DOLLARS FOR OTHER DEVELOPING COUNTRIES THEY WANTED MORE quote QUANTITATIVELY IT'S NOT IMPORTANT SAID DOMINGO CAVALLO ARGENTINA'S FINANCE MINISTER SAID OF THE DIFFERENCES AMONG THE COUNTRIES SYMBOLICALLY IT'S VERY IMPORTANT THE THIRTY TWO BILLION DOLLARS OF S. D. R.S NOW OUTSTANDING REPRESENT ONLY THREE percent OF THE WORLD'S TOTAL RESERVES DEVELOPING COUNTRIES SOME OF WHICH ARE ANNOYED BY THE ATTENTION THAT HAS BEEN GIVEN TO FORMERLY COMMUNIST COUNTRIES BLOCKED A G. SEVEN BACKED PLAN TO EXTEND A PROGRAM THAT WOULD ALLOW THE I. M. F. TO MAKE SPECIAL LOANS AS IT HAS TO RUSSIA TO COUNTRIES IN TRANSITION TO CAPITALISM LIKE ARMENIA AND GEORGIA BUT THE INTERIM COMMITTEE DID APPROVE A MEASURE TO INCREASE THE SIZE OF LOANS THAT MAY BE MADE UNDER REGULAR I. M. F. LENDING FREE SPEECH AND ANTIDISCRIMINATION HEAVYWEIGHTS ARE AGONIZING OVER A MASSACHUSETTS CASE THAT PITS FREE SPEECH RIGHTS AGAINST THE EXPANDING PROTECTIONS AGAINST SEXUAL HARASSMENT REPRESENTING DEFENDANT DAVID HELLER ALAN DERSHOWITZ WHO TOOK TIME OUT FROM THE O. J. SIMPSON TRIAL TO ARGUE HIS CASE IN A FORUM IN BOSTON LAST WEEK SIDING WITH PLAINTIFF SYLVIA SMITH BOWMAN THE NATIONAL CONFERENCE OF BLACK LAWYERS AND THE MASSACHUSETTS STATE BAR ASSOCIATIONS FOR WOMEN BLACKS HISPANICS AND ASIANS IN NINETEEN EIGHTY SEVEN MR. HELLER A SOCIAL WORKER AT THE MASSACHUSETTS DEPARTMENT OF PUBLIC WELFARE CIRCULATED COMPOSITE PHOTOS THAT PLACED THE FACE OF MS. BOWMAN A SUPERVISOR AT THE AGENCY ON THE BODIES OF EXPLICIT NUDES FROM HUSTLER AND PENTHOUSE MS. BOWMAN CAMPAIGNING FOR THE PRESIDENCY OF HER NINE THOUSAND MEMBER UNION LOCAL AT THE TIME SUED MR. HELLER FOR SEXUAL HARASSMENT AND WON A THIRTY FIVE THOUSAND DOLLAR JUDGMENT IN JULY NINETEEN NINETY THREE MR. HELLER HAS APPEALED ARGUING THAT THE FOCUS OF THE CASE SHOULD BE CENSORSHIP RATHER THAN SEXUAL HARASSMENT IN A NOVEL CLAIM MR. DERSHOWITZ WHO IS REPRESENTING MR. HELLER FOR FREE SAYS THAT AS A UNION ELECTION CANDIDATE MS. BOWMAN WAS A PUBLIC FIGURE AND THAT MR. HELLER'S ACTIONS WERE SATIRE ENTITLED TO BROAD FREE SPEECH PROTECTIONS TODAY UNION ELECTIONS TOMORROW PUBLIC ELECTIONS quote SAYS MR. DERSHOWITZ ARGUING THAT THE BOWMAN RULING COULD SET A PRECEDENT THAT WOULD CHILL POLITICAL FREE SPEECH ADVOCATES FOR WOMEN AND OTHER DISCRIMINATION VICTIMS HOWEVER SAY MR. DERSHOWITZ'S POSITION UNDERMINES THE LEGAL ADVANCES THAT HAVE BEEN MADE IN COMBATING WORKPLACE HARASSMENT IF THE APPEALS COURT RULES IN FAVOR OF HELLER IT WOULD HAVE THE EFFECT OF CUTTING BACK ON A BROAD PROTECTION THAT EMPLOYEES HAVE ENJOYED SAYS MIRIAM MCKENDALL AN EMPLOYMENT LAW SPECIALIST AT BOSTON LAW FIRM SHERBURNE POWERS and NEEDHAM IN BOSTON WHO ISN'T INVOLVED IN THE CASE NANCY SHILEPSKY A BOSTON ATTORNEY REPRESENTING MS. BOWMAN SAYS THIS COULD SET THE LAW BACK THIRTY YEARS TO NINETEEN SIXTY FOUR WHEN THE CIVIL RIGHTS ACT quote MADE THE WORKPLACE A LESS HOSTILE ENVIRONMENT FOR WOMEN AND MINORITIES THE ANTI DEFAMATION LEAGUE OF THE B'NAI B'RITH WAS CONSIDERING FILING A COURT BRIEF IN SUPPORT OF MS. BOWMAN BUT MR. DERSHOWITZ WHO IS AN ADL MEMBER AND A FORMER CHAIRMAN OF THE GROUP'S CIVIL RIGHTS COMMITTEE OBJECTED AND ASKED THAT THE CASE BE DEBATED PUBLICLY BEFORE THE ADL TAKES ANY STAND AT LAST WEEK'S MOCK TRIAL IN BOSTON ARRANGED BY THE ADL MR. DERSHOWITZ SAID THAT THE FIRST AMENDMENT IS IN CRISIS HE ADDED WOMEN ARE JUST AS THICK SKINNED AS MEN quote AND SHOULDN'T RUN TO MOMMY AND DADDY JUDGE AND SAY PROTECT ME FROM POLITICS POLITICS IS ROUGH STUFF EMPLOYMENT LAWYERS SAY A DECISION IN THE CASE WHICH SOME ATTORNEYS PREDICT WILL END UP BEFORE THE U. S. SUPREME COURT COULD HAVE OTHER IMPLICATIONS A RULING IN FAVOR OF MR. HELLER THEY SAY COULD EXPOSE CANDIDATES IN CORPORATE ELECTIONS OR THOSE RUNNING FOR SECRETARIAL CLUB POSTS TO LEWD RIDICULE ON THE OTHER HAND IF MS. BOWMAN WINS EMPLOYERS COULD BE FORCED TO POLICE OFFICE COMMUNICATIONS EVEN MORE ACUTELY TO PROTECT THEMSELVES FROM LIABILITY MS. BOWMAN WHO IS SIXTY SEVEN YEARS OLD DISCOVERED THE PICTURES WHICH WERE CIRCULATED AMONG HER CO WORKERS ONE DAY DURING LUNCH WHEN A COLLEAGUE GAVE THEM TO HER MORTIFIED SHE RAN INTO A NEARBY BOOK STORE TO CATCH HER BREATH THE STORE'S OWNER LATER TESTIFIED AT TRIAL THAT SHE THOUGHT MS. BOWMAN WAS HAVING A HEART ATTACK MS. BOWMAN LOST THE UNION ELECTION BUT DIDN'T BLAME MR. HELLER'S COLLAGE MR. HELLER NOW A SUPERVISOR AT THE AGENCY CLAIMS THE SEXUAL CARICATURES WERE IN RESPONSE TO BEING CALLED VULGAR NAMES BY MS. BOWMAN HE SAYS HE MEANT TO RIDICULE MS. BOWMAN THE POLITICAL CANDIDATE NOT HER FEMININITY MS. SHILEPSKY HOWEVER SAYS THIS IS ABOUT WHAT ONE EMPLOYEE CAN DO TO ANOTHER IN THE WORKPLACE IT'S NOT ABOUT WHAT PEOPLE CAN BUY ON THE NEWSSTAND OR SAY ABOUT PUBLIC OFFICIALS MR. HELLER'S ACTIONS quote INFESTED THE WORKPLACE WITH WHAT THE JUDGE CALLED PORNOGRAPHIC ASSAULT AND INTERFERED WITH MS. BOWMAN'S ABILITY TO DO HER JOB THERE MS. SHILEPSKY SAID SOME WORKPLACE ATTORNEYS SAID THE UNION PRESIDENCY WAS A MEANS OF ADVANCEMENT ON THE JOB FOR MS. BOWMAN THE COURTS GENERALLY HAVE RULED THAT A HOSTILE WORKPLACE IN WHICH SEXUALLY OFFENSIVE MATERIAL IS DISPLAYED FOR INSTANCE CAN AMOUNT TO SEXUAL HARASSMENT LAST FALL THE U. S. SUPREME COURT MADE IT EASIER FOR WOMEN TO WIN SUCH CASES BY RULING THAT A PLAINTIFF DOESN'T HAVE TO DEMONSTRATE THAT SHE WAS PSYCHOLOGICALLY HARMED BY THE DEFENDANT'S ACTIONS IN THE BOWMAN CASE SUFFOLK COUNTY JUDGE J. HAROLD FLANNERY CONCEDED THAT PEOPLE RUNNING FOR UNION OFFICE COULD BE CONSIDERED PUBLIC FIGURES BUT HE SAID THAT STATUS DOESN'T DEPRIVE THEM OF PROTECTION FROM SEXUAL HARASSMENT THE JUDGE REJECTED COMPARISONS TO A NINETEEN EIGHTY EIGHT CASE IN WHICH THE U. S. SUPREME COURT DETERMINED THAT A SIMILAR PORNOGRAPHIC COLLAGE PARODYING MORAL MAJORITY LEADER JERRY FALWELL IN HUSTLER WAS PROTECTED BY THE FIRST AMENDMENT MR. KELLER'S PASTE UP WASN'T PROTECTED AS POLITICAL SATIRE THE JUDGE RULED BECAUSE HIS WORK WAS A PERSONAL ATTACK ON MS. BOWMAN NOT HER POLITICS IN HIS RULING THE JUDGE SAID THE COLLAGE WAS NOTHING MORE THAN A REDUCTION OF BOWMAN TO A SEXUAL OBJECT AND AN ATTACK ON HER AS A WOMAN RATHER THAN AS A POLITICAL CANDIDATE HEY MAGNAVOX IS HOPING IT HAS PRODUCED NEW COMMERCIALS THAT ARE EFFECTIVE VERY EFFECTIVE A NEW ADVERTISING CAMPAIGN FROM MAGNAVOX CONSUMER ELECTRONICS SCHEDULED TO BEGIN THIS EVENING ON A. B. C.'S MONDAY NIGHT FOOTBALL quote MARKS ITS FIRST EFFORT IN THREE YEARS WITHOUT THE COMIC ACTOR JOHN CLEESE IN FACT IT IS THE FIRST TIME IN ALMOST A DECADE THAT MAGNAVOX ISN'T USING A WELL KNOWN COMEDIAN BEFORE MR. CLEESE IT USED THE SMOTHERS BROTHERS BUT HUMOR IS RETAINED TO DEMONSTRATE FEATURES ON TELEVISION SETS AND MINI STEREO SYSTEMS THERE IS A NEW OVERALL SLOGAN HEY WE MAKE TECHNOLOGY PEOPLE WANT ALTHOUGH MAGNAVOX IS RETAINING ITS SUCCESSFUL TAGLINE SMART VERY SMART BILLINGS ARE ESTIMATED AT THIRTY MILLION DOLLARS THE THREE AMUSING ADS ARE THE FIRST FROM MAGNAVOX'S NEW AGENCY FALLON MCELLIGOTT A MIDSIZE SHOP IN MINNEAPOLIS A YEAR AGO MAGANVOX CONSUMER ELECTRONICS SURPRISED MADISON AVENUE BY DUMPING ITS LONGTIME AGENCY THEN BACKER SPIELVOGEL BATES NOW BATES WORLDWIDE THEN IN JULY PHILIPS CONSUMER ELECTRONIC'S MAGNAVOX BRAND A UNIT OF PHILIPS ELECTRONICS AGAIN CAUGHT THE ATTENTION OF ADVERTISING EXECUTIVES BY DISMISSING ITS NEWLY ANOINTED AGENCY D'ARCY MASIUS BENTON and BOWLES AFTER ONLY FOUR MONTHS CITING quote DIFFERENCES IN CREATIVE PHILOSOPHY AND THEN APPOINTING FALLON THE RACE WAS ON FOR FALLON TO PRODUCE ADVERTISING THAT COULD GET ON THE AIR QUICKLY ABOUT SIXTY percent TO SEVENTY percent OF ALL CONSUMER ELECTRONICS PRODUCTS ARE SOLD FROM AUGUST THROUGH DECEMBER WITH THE FOURTH QUARTER BEING THE MOST CRITICAL THE ENTIRE CAMPAIGN WAS PUT TOGETHER WITHIN SIX WEEKS AND WILL INCLUDE A THIRTY MINUTE INFOMERCIAL FROM TYEE PRODUCTIONS PORTLAND OREGON THE NEW ADVERTISING PUSH COMES AS MAGNAVOX IS SHOWING IMPRESSIVE GROWTH ACCORDING TO INDUSTRY FIGURES NEITHER MAGNAVOX NOR THE ELECTRONICS INDUSTRIES ASSOCIATION RELEASES SALES FIGURES FOR SPECIFIC BRANDS BUT MAGNAVOX RANKED NUMBER TWO BEHIND GENERAL ELECTRIC'S R. C. A. slash PROSCAN MODELS IS PROJECTED TO HAVE TWELVE percent OF SALES OF U. S. DIRECT VIEW COLOR TELEVISION SETS AS OPPOSED TO LARGE REAR PROJECTION SETS IN MODEL YEAR NINETEEN NINETY FOUR ACCORDING TO A SURVEY BY TELEVISION DIGEST IN WASHINGTON D. C. LAST YEAR MAGNAVOX HAD TEN point TWO FIVE percent OF THE MARKET MARKET LEADER R. C. A. IS PROJECTED TO HAVE A SIXTEEN point FIVE percent SHARE UP FROM SIXTEEN point THREE percent AND NUMBER THREE ZENITH ELECTRONICS IS PROJECTED TO HAVE FLAT MARKET SHARE OF TEN percent SONY IS NUMBER FOUR WITH SEVEN percent UP FROM SIX point SIX percent IN NINETEEN NINETY THREE TO DIFFERENTIATE TELEVISION SETS IS A FORMIDABLE MARKETING TASK THEY ARE USUALLY STACKED NEXT TO AND ON TOP OF ONE ANOTHER IN DEPARTMENT STORES AND CONSUMER ELECTRONIC CHAIN STORES WHEREAS SONY HAD A POSITIONING BREAKTHROUGH IN THE EARLY NINETEEN SEVENTIES WITH ITS TRINITRON BRANDING TELEVISION MANUFACTURERS HAVEN'T BEEN ABLE TO BREAK THROUGH THE CLUTTER OF SAMENESS SINCE THEN NOW MAGNAVOX THINKS IT HAS THE GIMMICK AND ADVERTISING TO DO SO ONE OF THE COMMERCIALS HIGHLIGHTS A NEW FEATURE A REMOTE CONTROL THAT IF MISPLACED CAN BE FOUND BY PRESSING A BUTTON ON THE TELEVISION SET THE REMOTE WILL THEN BEGIN TO BEEP TO DEMONSTRATE THIS FALLON CONCOCTED A COMMERCIAL THAT SHOWS VARIOUS SCENARIOS INVOLVING LOSING ONE'S REMOTE A SUCKING SOFA THEORY A BIG FOOT HYPOTHESIS quote AND A POLTERGEIST THEORY IN WHICH A GHOST DESCENDS UPON A LIVING ROOM AND SWOOPS AWAY CARRYING THE CHERISHED REMOTE AT THE END OF THE SPOT A YOUNG MAN PRESSES THE REMOTE FIND BUTTON HEARS THE BEEP AND DISCOVERS HIDING BEHIND THE DRAPES BIG FOOT WHO SHEEPISHLY SURRENDERS THE PUSH BUTTON DEVICE ANOTHER COMMERCIAL SHOWS OFF ANOTHER GIMMICK IN THE THIRTY SECOND COMMERCIAL A BLACK AND WHITE MOVIE ENDS WITH LUSH ROMANTIC MUSIC ONLY TO BE CUT SHORT BY A LOUD AND OBNOXIOUS CAR SALESMAN SHOUTING quote THERE HAS NEVER BEEN A BETTER TIME TO BUY THE MAGNAVOX ANNOUNCER SAYS OF THE SALESMAN LIKE ANY HOUSEHOLD PEST THE MOST YOU CAN HOPE IS TO CONTROL THEM THE MAGNAVOX FEATURE CALLED SMART SOUND AUTOMATICALLY LEVELS OUT THE SO CALLED SPIKES IN TELEVISION VOLUME VOLUME TENDS TO GET LOUDER WHEN A COMMERCIAL COMES ON AND IS LOWERED WHEN THE PROGRAMMING RESUMES DIFFERENTIATION HAS BECOME THE KEY quote SAYS MICHAEL J. KEEL VICE PRESIDENT OF ADVERTISING AND MERCHANDISING AT PHILIPS CONSUMER ELECTRONICS WE NEED TO SHOW HOW WE'LL SOLVE A CONSUMER'S REAL LIFE PROBLEMS THE LEAST SUCCESSFUL OF THE TRIO OF ADS IS FOR THE MINI STEREO SYSTEM WHICH PLAYS SEVEN COMPACT DISKS ALLOWING FOR EIGHT HOURS OF CONTINUOUS MUSIC THE POOR PARTY GIVER FEATURED IN THE COMMERCIAL DOESN'T HAVE A MAGNAVOX THE MUSIC STOPS SUDDENLY AND EVERYONE LEAVES IN A FLASH THE INFOMERCIAL IS THE SECOND FOR PHILIPS LAST SEPTEMBER THE COMPANY PRODUCED A HALF HOUR INFOMERCIAL FOR ITS BIG TICKET COMPACT DISC INTERACTIVE OR C. D. I. THIS TIME PHILIPS IS PROMOTING THE MAGNAVOX TELEVISION SETS WITH THE TWO NEW FEATURES AND USES A ZANY ORIGINAL SHOW TO DO IT THE INFOMERCIAL IS TITLED MOTEL TIME WARP AND REVOLVES AROUND A NINETEEN FIFTIES FAMILY DIMWITTED HUSBAND SAVVY WIFE TWO BRATTY KIDS WHO CHECK INTO AN OUT OF THE WAY MOTEL ONCE THEY GET LOST IN A RAINSTORM IMAGINE quote THE TWILIGHT ZONE MEETS HI HONEY I'M HOME A NICKELODEON SITCOM THAT TRANSPORTED A NINETEEN FIFTIES T. V. FAMILY TO THE NINETEEN NINETIES OR LEAVE IT TO BEAVER quote TO GROUNDHOG DAY THE FAMILY'S ROOM CONTAINS A MAGNAVOX T. V. SET WITH ALL THE UP TO DATE FEATURES OF COURSE THE FAMILY IS DAZZLED BY THE GIMMICKS AND NEEDS AN ANNOYING HOTEL MANAGER TO CONTINUOUSLY EXPLAIN THE PRODUCTS THE INFOMERCIAL IS SCHEDULED TO BE SHOWN ON BROADCAST AND CABLE TELEVISION BEGINNING NEXT WEEK AS WITH THE FIRST PHILIPS INFOMERCIAL THE COMPANY HOPES TO BUY TIME IN THE TOP FIFTEEN TELEVISION MARKETS THAT WOULD RUN IN PLACE OF SOME LOW RATED PRIME TIME NETWORK OR SYNDICATED SHOWS FOR EXAMPLE LAST YEAR THE PHILIPS INFOMERCIAL RAN AT EIGHT THIRTY P. M. ON KPIX THE C. B. S. AFFILIATE IN SAN FRANCISCO THE INFOMERCIAL IS ANOTHER WAY TO DIFFERENTIATE OURSELVES SAYS MARK A. TONER ADVERTISING DIRECTOR AT PHILIPS CONSUMER ELECTRONICS quote MOST INFOMERCIALS ARE STRAIGHT SALES THIS ONE IS ENTERTAINING ONE HAS TO WONDER WILL THE VOLUME ON A MAGNAVOX TELEVISION SET EQUIPPED WITH SMART SOUND AUTOMATICALLY TURN DOWN THE VOLUME ONCE THESE SPIFFY NEW ADS COME ON SOME VIEWERS WILL MERELY RELY ON THE OLD FASHIONED METHOD IF THEY DON'T WANT TO HEAR THE PITCH THEY'LL SIMPLY PRESS THE MUTE BUTTON PADDINGTON LOWE and PARTNERS slash S. M. S. HAS BEEN AWARDED THE CAMPARI LIQUEUR ACCOUNT FROM PADDINGTON A SUBSIDIARY OF GRAND METROPOLITAN THE AGENCY ALREADY HANDLES PADDINGTON'S BAILEY'S IRISH CREAM AND SAMBUCA ROMANA LIQUEUR BILLINGS FOR CAMPARI WEREN'T DISCLOSED PREVIOUSLY CAMPARI ADVERTISING HAD BEEN DONE ON A PROJECT BASIS BY MILTON SAMUELS ADVERTISING IN NEW YORK SEPARATELY PADDINGTON IS TAKING ITS GOLDSCHLAGER CINNAMON FLAVORED GOLD FLECKED LIQUEUR NATIONAL WITH A PROMOTION CREATED BY MILTON SAMUELS PADDINGTON WILL SPEND FOUR MILLION DOLLARS TO FIVE MILLION DOLLARS TO FLY A BLIMP OVER NATIONAL FOOTBALL LEAGUE GAMES ON MONDAY NIGHT FOOTBALL AND TO INCREASE ITS PRINT ADVERTISING T. G. I. FRIDAY'S THE DALLAS BASED RESTAURANT CHAIN T. G. I. FRIDAY'S SELECTED PUBLICIS slash BLOOM'S DALLAS OFFICE AS ITS AD AGENCY A REVIEW INCLUDED THE CHICAGO OFFICES OF FOOTE CONE and BELDING W. P. P. GROUP'S J. WALTER THOMPSON AND HAL RINEY and PARTNERS NEW CAMPAIGN GENERAL MILLS INTRODUCES ITS NEW AND IMPROVED quote CHEERIOS CEREAL TODAY WITH A CELEBRITY PACKED COMMERCIAL FROM SAATCHI and SAATCHI ADVERTISING IT FEATURES ENTERTAINMENT TONIGHT PERSONALITY JOHN TESH ACTRESS MARLEE MATLIN AND SUPERMODEL KATHY IRELAND AMONG OTHERS WHO'S NEWS TOM GOODMAN WAS NAMED VICE PRESIDENT MEDIA RELATIONS AT THE C. B. S. BROADCAST GROUP SUCCEEDING ANN MORFOGEN WHO WAS NAMED VICE PRESIDENT COMMUNICATIONS AT SONY CORPORATION OF AMERICA MR. GOODMAN HAD BEEN VICE PRESIDENT COMMUNICATIONS AT C. B. S. NEWS AND THE C. B. S. OWNED T. V. STATIONS JUDITH WERME IS REJOINING THE CHICAGO OFFICE OF OMNICOM GROUP'S D. D. B. NEEDHAM AS SENIOR VICE PRESIDENT GROUP CREATIVE DIRECTOR HEADING ONE OF THE AGENCY'S SIX CREATIVE TEAMS SHE WAS PREVIOUSLY WITH TATHAM EURO R. S. C. G. PORT AU PRINCE HAITI SOON AFTER ARRIVING HERE I BEGAN TO HAVE DOUBTS ABOUT MY MUSCULAR DRIVER PIERRE WHEN TWICE IN AS MANY DAYS HE GOT OUT OF OUR CAR TO BEAT UP SOMEBODY THE SECOND THRASHING CAME WHEN I WAS TWENTY MINUTES LATE FOR AN APPOINTMENT WITH A HAITIAN PRIEST WHILE I WAITED IN THE CAR PIERRE WAS BUSY PUMMELING A MAN WHO HAD JUST SOLD US THREE VERY EXPENSIVE GALLONS OF GASOLINE I'LL KILL YOU PIERRE SCREAMED AT THE COWERING GASOLINE SUPPLIER WHO WAS TRYING TO TAKE HIS FUNNEL AND LEAVE PIERRE SHOVED HIM ONE MORE TIME THEN GOT BACK INTO THE CAR SLAMMED THE DOOR AND TOOK OFF MUTTERING AFTER THE POUNDING OF THE GAS MAN I MADE INQUIRIES DID MOST HAITIAN DRIVERS ROUTINELY ERUPT quote PIERRE ISN'T A HAITIAN DRIVER I WAS TOLD HE'S AN ATTACHE SO IT SEEMED I HAD EMPLOYED ONE OF THE MURDEROUS THUGS THAT FOR THREE YEARS HAVE BEEN HELPING HAITI'S MILITARY JUNTA TERRORIZE HAITIAN CIVILIANS THROUGH KILLINGS RAPES AND BEATINGS FOR THE U. S. MILITARY AND NEARLY EVERYONE ELSE INVOLVED IN HAITI'S TRANSITION FROM DISORDER SORTING OUT THE GOOD GUYS FROM THE BAD GUYS IS ONE OF THE BIG CHALLENGES FOR REPORTERS COVERING THE CHAOS IN HAITI CALLS FOR FAST ADJUSTMENTS AND READY BILLFOLDS TALK ABOUT YOUR VOODOO ECONOMICS MOMENTS AFTER MY ARRIVAL HERE I BEGAN PUMPING FUNDS INTO THE RAVAGED HAITIAN ECONOMY THERE WERE FEES TO FIXERS GATEKEEPERS INTERPRETERS AND DRIVERS NOT TO MENTION THE GOING TWENTY DOLLAR A GALLON RATE FOR GASOLINE MY DRIVER PIERRE COMMANDED A DAILY FEE OF THREE HUNDRED DOLLARS WHICH IS FIFTY DOLLARS MORE THAN THE AVERAGE HAITIAN MAKES IN A YEAR FEES BOTH OVER AND UNDER THE TABLE ACTUALLY START TO FLOW AT THE HAITIAN BORDER WITH THE DOMINICAN REPUBLIC THE WAY MOST JOURNALISTS AND CAMERA CREWS HAVE ENTERED ONE MAGAZINE REPORTER SAYS HE SPENT ONE THOUSAND FIVE HUNDRED DOLLARS GETTING OVER THE BORDER A TELEVISION TEAM CLAIMS TO HAVE LAID OUT SEVEN THOUSAND FIVE HUNDRED DOLLARS AT THE BORDER EXTRACURRICULAR PAYMENTS ARE DE RIGUEUR IN THE DEVELOPING WORLD HOT SPOTS BUT THE SCALE HERE SOARS SUBSTANTIALLY ABOVE THE USUAL GOING RATE MY BORDER COSTS WERE MORE TRADITIONAL AFTER A TWO HUNDRED FIFTY DOLLAR TAXI RIDE FROM SANTO DOMINGO TO THE DOMINICAN BORDER AT JIMANI I ENCOUNTERED A SUCCESSION OF GATEKEEPERS AND GUARDS FIRST THERE WAS TWO HUNDRED DOLLARS FOR A MILITARY AUTHORIZATION quote TO ENTER HAITI THEN FIFTY FIVE DOLLARS FOR AN ENTRY FEE FINALLY MY HAITIAN BUS WAS OFF FOR PORT AU PRINCE OR SO IT SEEMED THE BUS VEERED OFF THE MAIN ROAD ON A TEN MINUTE DETOUR THAT LED TO A NEW CHECKPOINT WHICH DEMANDED TWENTY DOLLARS THIS PROCESS IS HELPED ALONG BY A MONETARY SYSTEM THAT WOULD REQUIRE A TEAM OF EXPERTS FROM THE INTERNATIONAL MONETARY FUND TO DECIPHER PRICES IN HAITI ARE QUOTED IN HAITIAN DOLLARS BECAUSE EVERYONE THINKS THAT WAY WE ARE TOLD THE PROBLEM IS HAITIAN DOLLARS DON'T SEEM TO BE IN CIRCULATION THE ACTUAL CURRENCY IS quote GOURDES GREASE SOAKED TISSUE LIKE BILLS THAT MAKE YOU WANT TO PICK UP SURGICAL GLOVES BEFORE HANDLING THEM ONE GOURDE IS WORTH ONE FIFTH OF A HAITIAN DOLLAR THIS MEANS EVERY HAITIAN FROM THE ELITE WHO LIVE IN POSH HOUSES IN PETIONVILLE TO THE TINIEST STREET BEGGAR IN CITE SOLEIL CALCULATES FROM DOLLARS TO GOURDES FOR EVERY TRANSACTION ONE U. S. DOLLAR IS WORTH FIFTEEN GOURDES TRANSPORTATION IS IN HOT DEMAND A RADIO REPORTER RENTED A CAR FROM A CAR AGENCY THEN HIRED A DRIVER SEPARATELY FOR ONE HUNDRED DOLLARS A DAY PLUS THREE MEALS A DAY IN THE HOTEL RESTAURANT PART OF THE DEAL WAS THAT THE DRIVER GOT TO TAKE THE CAR HOME WITH HIM PRESUMABLY TO TAXI OTHER REPORTERS AT PREMIUM RATES THE ARRANGEMENT SOURED WEDNESDAY WHEN THE DRIVER HURTLING THROUGH TEEMING PORT AU PRINCE AT FIFTY MILES AN HOUR HIT A WOMAN THE REPORTER FOUND HIMSELF AT THE HOSPITAL HANDING OUT TWENTY DOLLAR BILLS LIKE IT WAS MONOPOLY MONEY TO CONCERNED RELATIVES OF THE WOMAN WHILE HIS DRIVER WAITED BLITHELY IN THE CAR THE WOMAN WAS TREATED AND RELEASED COMING TO NO SERIOUS HARM BUT AS I WELL KNOW FINDING A DRIVER IS NO EASY TASK SHORTLY AFTER MY ARRIVAL ERIC ONE OF THE FIXERS SHOWED UP IN A BASEBALL CAP AND PROMISED ME A FOUR WHEEL DRIVE VEHICLE A MUST FOR NAVIGATING PORT AU PRINCE'S CRATER FILLED STREETS AND A DRIVER FOR THE BARGAIN PRICE OF ONLY THREE HUNDRED DOLLARS A DAY I JUMPED AT IT PIERRE DAPPERLY DRESSED IN WHITE LINEN PANTS AND A FLOWING WHITE SHIRT SHOWED UP THE NEXT MORNING PROMPTLY AT SEVEN THIRTY WE GOT OFF TO AN AMIABLE START WHEN I INVITED HIM TO HAVE BREAKFAST WITH ME WE GOT IN HIS CAR A NINETEEN NINETY ONE MITSUBISHI MONTERO WITH THE IGNITION SWITCH TAPED UP AND THE GAS GAUGE BROKEN PIERRE HOT WIRED THE CAR AND WE HURLED OFF REACHING SPEEDS OF FIFTY AND SIXTY MILES AN HOUR THROUGH THE CROWDED CITY STREETS AND SOMETIMES THE MORE CROWDED SIDEWALKS THEN AS WE PASSED AN EMPTY SHELL STATION PIERRE SCREECHED ONTO THE SIDEWALK AND STOPPED HE HURLED SOME ABUSE AT A MAN ACROSS THE STREET THE MAN SLOWLY WALKED TOWARD THE CAR AND GAVE PIERRE TWO LICENSE PLATES AND A SHEET THAT LOOKED LIKE A CAR REGISTRATION FORM THIS SENT PIERRE INTO A FRENZY HE POUNDED ON THE LICENSE PLATES THREW THE REGISTRATION FORM AT THE MAN AND FLEW OUT OF THE CAR PIERRE CHASED THE MAN ACROSS THE STREET CAUGHT HIM AND KICKED HIM IN THE REAR THE MAN TRIED TO FIGHT BACK BUT PIERRE SHOVED THE MAN TO THE GROUND YELLING UNCONTROLLABLY THEN PIERRE GOT UP BRUSHED OFF HIS WHITE LINEN PANTS AND STROLLED BACK ACROSS THE STREET TO THE CAR STOPPING BRIEFLY TO PICK UP THE PLATES AND REGISTRATION FORM WHATEVER THIS ALTERCATION WAS ABOUT WE WEREN'T GETTING OFF TO A GOOD START I SUGGESTED IN ENGLISH WHICH PIERRE DOESN'T UNDERSTAND THAT HE CALM DOWN WHEN THE ACTION WAS REPEATED THE NEXT DAY AND I LEARNED THAT PIERRE WAS AN ATTACHE I DECIDED TO REPLACE HIM BUT HOW I CALLED ERIC THE FIXER WHAT DO YOU MEAN ATTACHE ERIC SAID EVERYBODY HERE IS ATTACHE quote ERIC ASKED PIERRE TO PLEASE GO A LITTLE EASIER PIERRE NODDED THINKING ALL WAS SETTLED I WENT INTO THE HOTEL TO MAKE A PHONE CALL WHEN I RETURNED ERIC WAS GONE PIERRE HAD BEATEN HIM UP AND ERIC HAD FLED ONLOOKERS TOLD ME IT TOOK ME TWO MORE DAYS TO MUSTER UP THE COURAGE TO FIRE PIERRE FINALLY AIDED BY A HIRED TRANSLATOR I OFFERED HIM EIGHT HUNDRED DOLLARS THE REST OF HIS FEE WAS SUPPOSED TO GO TO ERIC FOR ARRANGING THE DEBACLE THANKS FOR YOUR SERVICES I SAID PIERRE LOOKED AT THE FOLDED GREEN BILLS AS IF THEY WERE POISON YOU AREN'T LEAVING TOMORROW HE SAID SOLEMNLY quote WHY DO YOU PAY ME NOW I WAS SWEATING I TOLD HIM I WASN'T SURE WHEN I WAS LEAVING BUT THAT I WOULDN'T BE NEEDING HIM ANYMORE GOODBYE THEN I BOLTED BACK INTO THE HOTEL WHERE I PULLED THE DRESSER IN FRONT OF THE DOOR TO MY ROOM THE NEXT MORNING I MET WITH MY NEW DRIVER A MILD MANNERED UNIVERSITY STUDENT NAMED LIVINGSTON BUT AS WE GOT INTO HIS JEEP PIERRE APPEARED IN ONE OF HIS NOW TRADEMARK RAGES I'LL KILL YOU quote HE SCREAMED LURCHING AT LIVINGSTON'S DOOR YOU STOLE MY CLIENT I'M GOING TO CUT OFF ONE OF MY ARMS AND SELL IT TO VOODOO SO YOU AND SHE CAN DIE HE YELLED FOR LIVINGSTON TO GET OUT OF THE JEEP SO HE COULD BEAT HIM UP BUT LIVINGSTON JUST LISTENED TO HIM QUIETLY WITH A HALF SMILE ON HIS FACE THEN WHEN PIERRE WAS DONE LIVINGSTON PUT HIS JEEP INTO FIRST GEAR AND WE DROVE AWAY TIM O'BRIEN'S GOING AFTER CACCIATO CAPTURED THE VIETNAM WAR AS NO OTHER NOVEL HAS NOW MR. O'BRIEN HAS CAPTURED VIETNAM'S AFTERFLASH quote IN THE LAKE OF THE WOODS HOUGHTON MIFFLIN THREE HUNDRED SIX PAGES TWENTY ONE DOLLARS AND NINETY FIVE CENTS IS SERIOUS GRACEFULLY WRITTEN AND AT THE SAME TIME AS GRIPPING AS A THRILLER IT BEGINS DECEPTIVELY WITH A CALM CHAPTER OF FAUX HEMINGWAY THAT ESTABLISHES A MOOD IT WAS A TERRIBLE TIME IN THEIR LIVES AND THEY WANTED DESPERATELY TO BE HAPPY BUT FORTUNATELY THE OPENING IS UNLIKE THE REST HEMINGWAY VANISHES AND THE INITIAL COOL RESTRAINT YIELDS TO THE COMPELLING DRAMA THAT MR. O'BRIEN MAKES OF JOHN AND KATHY WARD'S HOLIDAY IN THE WOODS WARD IS A MINNESOTA POLITICIAN ONCE A FAIR HAIRED BOY HE RETREATS TO AN ISOLATED LAKESIDE CABIN TO LICK HIS WOUNDS AFTER A LACERATING DEFEAT IN A NINETEEN EIGHTY SIX BID FOR THE U. S. SENATE DEFEAT IS POISON TO WARD EVEN IN GOOD TIMES HE IS A SICK PUPPY HUMILIATION DRIVES HIM MAD AFTER ONLY A FEW PAGES A READER KNOWS THAT KATHY DISAPPEARED FROM THE CABIN AND YEARS LATER STILL HASN'T BEEN FOUND ALMOST AS QUICKLY MR. O'BRIEN REVEALS THAT WARD LOST BECAUSE A SKELETON CAME CRASHING OUT OF HIS CLOSET DURING THE CAMPAIGN A SKELETON SO GHASTLY IT BURIED HIS CAREER UNDER A MOUNTAIN OF BONES THE NARRATOR WHO TELLS US HE HAS SOUGHT FOR YEARS TO UNRAVEL THE MYSTERY OF WHAT HAPPENED TO KATHY PAINTS WARD AS AN EMOTIONALLY NEEDY MAN KATHY HERSELF HAD THOUGHT OF HER HUSBAND MORE THAN ANYONE SHE'D EVER KNOWN JOHN NEEDED THE CONSPICUOUS DISPLAY OF HUMAN LOVE ABSOLUTE UNCONDITIONAL LOVE LOVE WITHOUT LIMIT LIKE A HUNGER SHE THOUGHT SOME VAST EMPTINESS SEEMED TO DRIVE HIM ON A CRAVING FOR WARMTH AND REASSURANCE POLITICS WAS JUST A LOVE THERMOMETER quote WHEN THE MERCURY PLUMMETS SOME POLITICIANS LOSE CONTROL WARD EVEN WENT TO WAR IN VIETNAM FOR LOVE THE LOVE OF HIS DEAD FATHER OF HIS MOTHER OF PEOPLE HE MIGHT MEET SOMEDAY MOST OF ALL OF HIMSELF BUT WHAT HE FOUND IN VIETNAM WAS LOVE'S OPPOSITE AND WHAT HE DID THERE LAY BURIED INSIDE HIM FOR ALMOST TWO DECADES ONLY TO SPRING UP AND BLOW HIM APART AS DEVASTATINGLY AS THE LAND MINES G. I.S CALLED BOUNCING BETTYS FOR WARD HAD BEEN IN THE AMERICAL DIVISION HE WAS IN CHARLIE COMPANY HE WAS IN LIEUTENANT WILLIAM CALLEY'S PLATOON HE WAS AT MY LAI ONE PIECE OF LUCK WARD HAD A CHANCE TO FIDDLE ARMY RECORDS AFTER THE MASSACRE BUT BEFORE IT WAS PUBLICLY DISCLOSED CONCEALING HIS INVOLVEMENT MOST OF HIS FELLOW SOLDIERS KNEW HIM ONLY BY HIS NICKNAME SORCERER HE THOUGHT HE WAS SAFE NOT LONG AFTER HIS RETURN HE MARRIED KATHY AND EMBARKED ON HIS POLITICAL CAREER THEY SACRIFICED EVERYTHING TO IT SO THE UNFAIRNESS OF ITS END TEARS AT WARD AS HE BROODS IN THE NORTHERN MINNESOTA CABIN HE'D BEEN A BELIEVER DISCIPLINE AND TENACITY HE HAD BELIEVED IN THOSE VIRTUES AND IN THE FUNDAMENTAL JUSTICE OF THINGS AN EVERYDAY SORT OF FAIRNESS THAT IF YOU WORKED LIKE A SON OF A BITCH IF YOU STUCK IT OUT AND DIDN'T QUIT THEN SOONER OR LATER YOU'D GET THE PAYOFF POLITICS IT WAS ALL HE'D EVER WANTED FOR HIMSELF MR. O'BRIEN HAS A SURE TOUCH FOR THE PASSIONS OF POLITICS AS WELL AS FOR THE PRESSURES OF COMBAT HIS NOVEL REMINDS US OF MUCH WE HAVE LEARNED OF POLITICIANS' HUNGERS AND THEIR REACTIONS UNDER STRESS FROM BIOGRAPHIES OF NIXON L. B. J. EVEN PRESIDENT CLINTON DURING HIS YOUTH WARD HAD BECOME A SKILLED MAGICIAN HIS TRICK AFTER MY LAI WAS FORGETFULNESS TO PRACTICE IT LONGER BEFORE RETURNING TO THE REAL WORLD HE EXTENDED HIS TOUR TWICE HE EARNED PROMOTIONS HE BECAME PROFESSIONAL IN COMBAT AS HE NOTES IT MAY NOT HAVE BEEN VALOR BUT IT WAS A START SUCH IS MR. O'BRIEN'S SKILL WITH PLOT THAT HE GIVES AWAY MANY SECRETS EARLY BUT READERS LIKE THE NARRATOR STILL ARE SWEPT ALONG THE MYSTERY HE PRESERVES IS THE MYSTERY OF KATHY DID SHE RUN AWAY FROM THE POISONS FILLING HER HUSBAND DID SHE TAKE HER LIFE PERHAPS SHE ONLY MEANT TO GET SOME TIME BY HERSELF BUT LOST HER WAY IN THE WILDERNESS OR DID WARD KILL HER SHE HAD BEEN A WOMAN STRAPPED INTO THE BACKSEAT OF HER OWN LIFE IN ONE OF MR. O'BRIEN'S MANY STRIKING PHRASES HER OWN VOLITION COUNTED FOR LITTLE AS SHE SPED DOWN THE POLITICAL ROAD HER HUSBAND TRAVELED SCENARIO AFTER SCENARIO FOR HER FATE IS NOT ONLY SUGGESTED BUT FLESHED OUT WITH NARRATIVE DETAILS WE SEE HOW KATHY TOOK OUT A SMALL BOAT IN THE EARLY MORNING ONLY TO LOSE HER WAY AMONG THE ISLANDS OF THE GIANT LAKE WE SEE HER MURDERED IN A GRISLY WAY WE KNOW A HANDFUL OF GOOD REASONS FOR HER TO PUT THOUSANDS OF MILES BETWEEN HERSELF AND WARD DOES WARD EVEN KNOW WHETHER OR NOT HE KILLED HER THE POSSIBILITY EXISTS THAT THIS WALKING DEAD MAN DOESN'T ONE MOMENT HE HOVERS ON THE VERGE OF CONFESSING THE NEXT HE DENIES ANY GUILT MR. O'BRIEN LEADS A READER IN ONE DIRECTION AND THEN IN ANOTHER LIKE A DOG TRACKING A SCENT IS THE SPOOR STRONG ENOUGH OR IS THE PROBLEM THAT SOME ANSWERS ARE UNKNOWABLE THAT SOMETIMES NO ONE CAN FATHOM THE HUMAN HEART AND SO OUR OWN PREJUDICES TELL US WHICH TRAIL TO FOLLOW AND WHICH TRUTH TO BELIEVE MR. O'BRIEN MAKES THE HUNT A THRILLING PURSUIT STUCK WITH A PRODUCT THAT CUSTOMERS IGNORE AND RETAILERS HATE PHILIPS ELECTRONICS N. V. HAS COME UP WITH A NOVEL RESCUE PLAN RELAUNCH IT THE PRODUCT IS THE DIGITAL COMPACT CASSETTE MACHINE WHICH LOOKS AND WORKS PRETTY MUCH LIKE A CONVENTIONAL CASSETTE PLAYER WITH ONE EXCEPTION THE TAPES MADE FOR IT ARE DIGITAL ALTHOUGH THAT MEANS BETTER SOUND PHILIPS SAYS THESE TAPES CAN'T BE PLAYED ON CONVENTIONAL ANALOG CASSETTE MACHINES WHILE A DCC MACHINE WILL PLAY CONVENTIONAL TAPES THE CHALLENGE FOR THE PRODUCT WHICH WAS INTRODUCED TWO YEARS AGO WAS TO PERSUADE THE TENS OF MILLIONS OF PEOPLE WHO ALREADY HAVE ANALOG MACHINES TO SPEND HUNDREDS OF DOLLARS MORE FOR A DIGITAL SETUP THEY WEREN'T PERSUADED A MAJOR SETBACK FOR THE COMPANY THAT HAD INVENTED THE COMPACT DISK AND SPENT MANY MILLIONS OF DOLLARS ON DCC RESEARCH quote EVERYTHING THAT COULD HAVE POSSIBLY GONE WRONG IN THE MARKETING HAS GONE WRONG SAYS DAVID HUGHES VICE PRESIDENT OF E. M. I. RECORDS U. K. IN LONDON WHICH OFFERS ITS MUSIC ON THE DCC FORMAT ANALYSTS SAY THE DUTCH ELECTRONICS GIANT WILL BE LUCKY IF SALES OF THE DCC THIS YEAR MATCH LAST YEAR'S ONE HUNDRED FIFTY THOUSAND UNITS PHILIPS ONCE GUESSED THAT DCC SALES WOULD QUICKLY REACH ONE MILLION AND MANY RETAILERS THAT INITIALLY BACKED THE TECHNOLOGY HAVE LOST FAITH PAUL GLUCKMAN A SENIOR EDITOR AT THE TRADE JOURNAL AUDIO WEEK DECLARES THAT DCC IS A DEAD PRODUCT PHILIPS WHILE ACKNOWLEDGING SOME MISTAKES INSISTS THAT DCC STILL HAS A LONG AND USEFUL LIFE YES IT WILL BE DIFFICULT YES IT WILL BE SLOW BUT ALL THE CONDITIONS ARE THERE quote SAYS DIETER RADECKI A VICE PRESIDENT OVERSEEING DCC AT POLYGRAM N. V. THE RECORD COMPANY SEVENTY FIVE percent OWNED BY PHILIPS PHILIPS'S SALVAGE EFFORT SET TO BEGIN IMMEDIATELY AND CONTINUE THROUGH NEXT SPRING INCLUDES A REVAMPED ADVERTISING CAMPAIGN PRICE CUTS AND A BUNDLE OF NEW PRODUCTS INCLUDING CAR MODELS PORTABLES AND A SO CALLED RACK SYSTEM THAT CONTAINS A RECEIVER TAPE DECK AND SPEAKERS ALL IN ONE PACKAGE BUT THE CHALLENGE REMAINS FORMIDABLE BECAUSE THE DCC MUST OVERCOME A CLASSIC TECHNOLOGICAL PROBLEM HARDWARE WON'T SELL IF THE RECORDS AREN'T AVAILABLE AND THE RECORD COMPANIES DON'T WANT TO INVEST IN A FORMAT THAT DOESN'T APPEAR TO BE WORKING THE CONSUMER HAS NOT GRAVITATED TO DCC THEY JUST HAVE NOT EMBRACED IT SAYS RICK BORINSTEIN VICE PRESIDENT OF RADIO SHACK THE RETAILING ARM OF TANDY CORPORATION WHERE SALES OF DCC MACHINES HAVE BEEN NEARLY NONEXISTENT ALSO GOING AGAINST THE PRODUCT IS HISTORY DESPITE PHILIPS'S STORIED HIGH TECH SUCCESSES EUROPE'S LARGEST CONSUMER ELECTRONICS COMPANY NEVERTHELESS HAS A REPUTATION AS A GREAT INNOVATOR THAT IS LOUSY AT MARKETING THE COMPANY FOR INSTANCE SUPPORTED A VIDEOCASSETTE RECORDER FORMAT THAT NEVER TOOK OFF AND INTRODUCED A VIDEO LASER DISK THAT HAS STILL NOT REALLY CAUGHT ON PHILIPS EXECUTIVES DON'T DISMISS THE PROBLEMS CONCEDING THAT THEY INITIALLY GLUTTED RECORD STORES WITH TOO MANY DCC TITLES A MORE LIMITED RELEASE WOULD HAVE WORKED BETTER AND KEPT TAPES FROM GATHERING DUST ON RETAILERS' SHELVES AS IT HAPPENED SOME RETAILERS WERE ANGERED BY THE EXCESS INVENTORY AND BEGAN RETURNING OLD TAPES CUSTOMERS COULDN'T FIND THE MUSIC THEY WANTED AN ENORMOUS AMOUNT OF MUSIC INDUSTRY PEOPLE ARE GREATLY DISAPPOINTED SAYS GIJS WIRTZ A SENIOR DCC PRODUCT MANAGER PHILIPS OFFICIALS ALSO SAY THAT EARLIER THIS YEAR THE COMPANY MISHANDLED A PRICE REDUCTION THAT WAS SUPPOSED TO EASE OLD PLAYERS OUT OF STORES TO MAKE ROOM FOR NEWER MODELS INSTEAD THE PRICE CUTS WERE SO DRASTIC THAT SOME STORES WERE COMPLETELY CLEANED OUT LONG BEFORE ANY NEW MACHINES ARRIVED quote IT WAS OBVIOUSLY TOO MUCH MR. WIRTZ SAYS PHILIPS'S SECOND STAB AT A DCC LAUNCH IS MUCH MORE CAUTIOUS THE COMPANY THIS TIME PLANS TO LIMIT THE RELEASE OF NEW TITLES TO THE BIGGEST HITS AND IT PLANS TO FOCUS ON STORES THAT SHOW INTEREST THERE'S MUCH MORE DISCUSSION WITH THE RETAILER OVER WHETHER THEY WANT TO BE INVOLVED OR NOT MR. WIRTZ SAYS MORE FUNDAMENTALLY PHILIPS IS HOPING TO REPOSITION DCC WHAT BEGAN AS A PRODUCT FOR THE INDUSTRY'S AUDIOPHILES EARLY ADAPTERS quote IN COMPUTER INDUSTRY JARGON IS NOW BEING PITCHED AS SOMETHING FOR ANYBODY LOOKING FOR A HIGH TECH CASSETTE PLAYER THE GOAL TO ATTRACT MANY MORE OF THE TWO HUNDRED MILLION PEOPLE A YEAR WHO BUY AN AUDIO CASSETTE MACHINE THE PHILIPS ADVERTISING MESSAGE HAS BEEN COMPLETELY CHANGED WHEN DCC WAS FIRST INTRODUCED PHILIPS MADE HEADLINES FOR ITS INNOVATIVE M. T. V. STYLE THREE MINUTE COMMERCIALS NONE OF THE ADS FEATURED A DCC PLAYER OR TAPE OR EVEN SPELLED OUT WHAT THE ACRONYM STOOD FOR THE NEW PROMOTION IS MUCH SIMPLER ENCOURAGING CONSUMERS TO MOVE UP TO DCC AND FOCUSING ON THE PRODUCT'S COMPATIBILITY WITH CURRENT AUDIO CASSETTES SKEPTICS THOUGH THINK PHILIPS IS MOVING MUCH TOO LATE MR. HUGHES OF E. M. I. SAYS THE BEST SELLING DCC TITLE IN ENGLAND WILL SELL ONLY ABOUT FIFTY COPIES AT HMV U. K. LIMITED A BIG MUSIC RETAILER ONLY A FIFTH OF THE CHAIN'S ONE HUNDRED STORES OFFER DCC TITLES SOME WEEKS HMV SAYS BARELY A HANDFUL OF THE TITLES SELL IT'S VERY MARGINAL TO BE HONEST SAYS GENNARO CASTALDO AN HMV SPOKESMAN quote WE'RE DOING OUR BEST TO SHOW OUR SUPPORT FOR IT BUT AT SOME POINT YOU DO HAVE TO DRAW THE LINE MR. GLUCKMAN OF AUDIO WEEK BELIEVES PHILIPS HASN'T BEEN ABLE TO CONVINCE AUDIOPHILES THAT TAPE CAN PRODUCE HIGH QUALITY SOUND IN THE BATTLE OVER AESTHETICS IN THE AUDIO WORLD HE SAYS COMPACT DISKS HAVE WON IT'S THE OLDER GENERATION THAT TENDS TO BUY DCC SAYS ERIC DOMS A SALESMAN AT AN FNAC ELECTRONICS STORE IN BRUSSELS MR. DOMS SAYS YOUNGER BUYERS OPT FOR C. D. MACHINES OR FOR THE MINIDISC THE PORTABLE C. D. MACHINE NOW MARKETED BY SONY CORPORATION EVEN WORSE THE DCC INCIDENT SEEMS TO HAVE PROLONGED THE PERCEPTION PHILIPS MOST WANTS TO SHAKE THEY SEEM TO GO OUT OF THEIR WAY TO PERPETUATE THIS IMAGE OF BEING A BUMBLING IDIOT WHEN IT COMES TO MARKETING quote MR. GLUCKMAN SAYS ALTHOUGH MR. WIRTZ IS CONVINCED THAT DCC COULD STILL BE A WINNER FOR PHILIPS HE COUNSELS PATIENCE HISTORY HE SAYS SHOWS THAT THE SEVEN YEAR WAITING PERIOD NEEDED FOR THE INTRODUCTION OF A NEW TECHNOLOGY CAN RARELY BE ACCELERATED YOU CAN'T DO IT FASTER HE SAYS IT'S IMPOSSIBLE MARTIN DU BOIS CONTRIBUTED TO THIS ARTICLE NIPPON TELEGRAPH and TELEPHONE CORPORATION'S PRESIDENT SAID THE COMPANY PLANS TO HOLD OFF ON MAKING FURTHER INVESTMENTS IN U. S. TELECOMMUNICATIONS COMPANIES BUT INTENDS TO STEP UP EFFORTS TO LURE HIGH TECH U. S. PARTNERS TO DEVELOP ADVANCED MULTIMEDIA SERVICES MASASHI KOJIMA THE PRESIDENT OF JAPAN'S PHONE GIANT SAID TELECOMMUNICATIONS INVESTMENTS IN THE U. S. ARE TOO COSTLY AND HE SAID N. T. T. IS FINDING IT DIFFICULT TO DECIDE WHERE TO INVEST PARTICULARLY AFTER THE U. S. CONGRESS'S FAILURE TO PASS A SWEEPING TELECOMMUNICATIONS BILL quote THE SITUATION IS QUITE UNCLEAR AND I BELIEVE THIS GROPING IN THE DARK WILL CONTINUE FOR AT LEAST TWO MORE YEARS MR. KOJIMA SAID IN AN INTERVIEW HERE NOTING THE NUMEROUS ALLIANCES OF U.SS PHONE CABLE AND WIRELESS SERVICES HE ADDED THERE IS A RECENT TREND OF REINTEGRATION OF SERVICES MAKING US WONDER WHERE ARE WE GOING N. T. T.'S PULLBACK WOULD MAKE THE COMPANY ONE OF THE FIRST HIGH PROFILE FOREIGN INVESTORS TO ALTER ITS STRATEGY AFTER THE BILL'S DEMISE SO FAR N. T. T.'S BIGGEST INVESTMENT IN U. S. TELECOMMUNICATIONS IS ITS SEVENTY FIVE MILLION DOLLARS IN FLEDGLING WIRELESS CARRIER NEXTEL COMMUNICATIONS INCORPORATED IN RUTHERFORD N. J. FOR A LESS THAN ONE percent STAKE THE BILL WHICH FELL VICTIM TO THE POWERFUL BELL LOBBY AND PRESSURE FROM OTHER SPECIAL INTERESTS WOULD HAVE DEREGULATED TELECOMMUNICATIONS SERVICES ALLOWING THE REGIONAL BELLS TO OFFER LONG DISTANCE AND OTHER SERVICES AND FURTHER OPENING LOCAL MARKETS TO COMPETITORS N. T. T. FACES A NEBULOUS FUTURE WITH DWINDLING RESOURCES THERE ARE MOVES WITHIN JAPAN TO BREAK UP THE PHONE BEHEMOTH TO IMPROVE SERVICE EFFICIENCY AND ACCELERATE COMPETITION MOREOVER THE JAPANESE GOVERNMENT RECENTLY FROZE N. T. T.'S PLAN TO RAISE ITS FLAT MONTHLY CHARGE ON SUBSCRIBERS AND DIRECTORY ASSISTANCE BY EIGHTEEN percent THAT INCREASE WOULD HAVE BROUGHT IN AN ADDITIONAL TWO BILLION DOLLARS A YEAR IN REVENUE WHICH N. T. T. AMERICA INCORPORATED PRESIDENT KOICHIRO HAYASHI SAID N. T. T. COULD HAVE USED FOR FURTHER INVESTMENTS THE COMPANY HAD REVENUE OF ABOUT SIXTY FOUR point NINE BILLION DOLLARS IN ITS FISCAL YEAR ENDED MARCH THIRTY FIRST CASH FLOW OF ABOUT TWENTY BILLION DOLLARS ITS CAPITAL INVESTMENTS GREW BY TEN point FOUR percent TO TWENTY THREE point ONE BILLION DOLLARS BUT ITS PROFITS ARE HEADING SOUTH PRETAX INCOME FELL BY FORTY TWO percent TO ONE point SEVEN BILLION DOLLARS AND OPERATING INCOME A GOOD INDICATOR OF COST CONTROLS FELL BY TWENTY FOUR percent TO THREE point SEVEN EIGHT BILLION DOLLARS SO NOW N. T. T. MUST FIND COLLABORATORS IN MULTIMEDIA AND DO SO FRUGALLY MULTIMEDIA BLENDS AUDIO VIDEO AND IMAGE TECHNOLOGIES INTO NEW PRODUCTS AND SERVICES SUCH AS INTERACTIVE GAMES THAT CAN BE PLAYED OVER A NETWORK BY NUMEROUS PEOPLE N. T. T. IS ALREADY ALIGNED WITH SOFTWARE GIANT MICROSOFT CORPORATION IN REDMOND WASHINGTON TO JOINTLY DEVELOP SOFTWARE THAT WILL PERMIT PERSONAL COMPUTERS TO SEND FAX MESSAGES AND OTHER DATA MORE EASILY THROUGH N. T. T.'S COMMUNICATIONS NETWORK WITH MOUNTAIN VIEW CALIFORNIA BASED GENERAL MAGIC INCORPORATED N. T. T. IS SEEKING WAYS OF LINKING ITS SUBSCRIBERS USING DATA COMMUNICATORS AND N. T. T. HAS TEAMED UP WITH VIRTUAL REALITY PACESETTER SILICON GRAPHICS INCORPORATED IN MOUNTAIN VIEW CALIFORNIA TO DEVELOP A MEANS FOR CONNECTING POWERFUL VIDEO STORAGE COMPUTERS CALLED SERVERS quote TO JAPANESE SUBSCRIBERS FOR A NEW INTERACTIVE VIDEO SERVICE BUT MR. KOJIMA SAID N. T. T. NEEDS ADDITIONAL HIGH TECH ASSISTANCE THE COMPANY RECENTLY LISTED ITS SHARES ON THE NEW YORK STOCK EXCHANGE TO LET POTENTIAL PARTNERS KNOW WE'RE A SERIOUS PLAYER IN THE U. S. MR. KOJIMA SAID THE COMPANY PLANS A SIMILAR LISTING SOON IN LONDON IN ADDITION N. T. T. IS FINALIZING PLANS TO BUILD ITS FIRST RESEARCH AND DEVELOPMENT CENTER IN THE U. S. MOST PROBABLY ON THE WEST COAST NEAR SILICON VALLEY AND THE ENTERTAINMENT INDUSTRY MR. KOJIMA SAID THE R. and D. FACILITY WILL BE STAFFED BY JAPANESE AND U. S. SCIENTISTS AND FOCUS LARGELY ON SOFTWARE AIMED AT IMPROVING N. T. T.'S NETWORKING EXPERTISE IN THE AREA OF VIDEO AND DATA NETWORKING HE ADDED CONGRESS NOW HAS BEFORE IT BILLS THAT WOULD REFORM AND RATIONALIZE MAJOR PIECES OF ENVIRONMENTAL LEGISLATION FROM THE ENDANGERED SPECIES ACT TO THE CLEAN WATER ACT ALAS THE CLEAN AIR ACT MOST RECENTLY AMENDED IN NINETEEN NINETY IS NOT ON THE TABLE BUT RECENT DEVELOPMENTS ON THE ETHANOL MANDATE THAT GREW OUT OF THE NINETEEN NINETY LEGISLATION SHOW CLEARLY WHY WE SO NEED TO REIN IN OVERZEALOUS REGULATORS THE NINETEEN NINETY CLEAN AIR ACT REQUIRED THE E. P. A. TO TAKE A HOST OF STEPS TO REDUCE SMOG SO STARTING NEXT YEAR GASOLINE MUST BE REFORMULATED WITH quote OXYGENATES LIKE ETHANOL OR METHANOL IN MAJOR METROPOLITAN AREAS WITH SMOG PROBLEMS THIS IS A COSTLY CHANGE IT'S EXPECTED TO ADD AT LEAST FIVE TO SEVEN CENTS TO A GALLON OF GASOLINE AND LIKE MANY ENVIRONMENTAL REGULATIONS IT'S BASED ON THE FLIMSIEST OF RATIONALES THE E. P. A. FIGURES THAT OXYGENATED GASOLINE WILL CUT DOWN ON TOXIC EMISSIONS IN THE ATMOSPHERE BUT BECAUSE OF THE EXTRA POLLUTANTS NEEDED TO PRODUCE THE CLEANER GAS THE NET RESULT IS LIKELY TO BE A WASH A. BLAKEMAN EARLY A WASHINGTON REPRESENTATIVE OF THE SIERRA CLUB TELLS US THERE IS A REAL QUESTION WHETHER YOU NEED THE OXYGEN REQUIREMENT AT ALL HE SAYS THAT SUBSEQUENT SCIENTIFIC RESEARCH HAS REVEALED THAT THE REQUIREMENT IS NOT AS IMPORTANT quote AS DRAFTERS OF THE CLEAN AIR LEGISLATION THOUGHT IT WAS BUT THE LAW IS ON THE BOOKS AND E. P. A. HAD TO CARRY IT OUT TWO OXYGENATES CORN BASED ETHANOL AND METHANOL BASED M. T. B. E. WOULD MEET THE GOALS OF THE CLEAN AIR ACT IN A NINETEEN NINETY ONE NEGOTIATION WITH INTERESTED PARTIES THE E. P. A. BASICALLY AGREED TO LET THE MARKET CHOOSE BETWEEN THE TWO BUT THEN ON JUNE THIRTIETH THE AGENCY SUDDENLY ISSUED A UKASE THAT BY NINETEEN NINETY SIX THIRTY percent OF REFORMULATED GASOLINE MUST CONTAIN ETHANOL CORN BASED ETHANOL IS ONE OF THE GREATEST ENERGY BOONDOGGLES EVER CONCEIVED DURING THE PAST DECADE IT'S SUCKED UP AT LEAST FOUR point SIX BILLION DOLLARS IN TAX SUBSIDIES MANDATING ITS USE WOULD COST TAXPAYERS AN ESTIMATED SEVEN HUNDRED FORTY MILLION DOLLARS ANNUALLY UP FROM FIVE HUNDRED MILLION DOLLARS TODAY IT WOULD ALSO IMPOSE HEAVY COSTS ON THE OIL INDUSTRY WHICH WOULD HAVE TO REARRANGE ITS PIPELINE AND TRANSPORTATION NETWORK TO USE THE CORN BASED FUEL AND MOST IMPORTANT THERE IS NO EVIDENCE THAT ETHANOL IS MORE ENVIRONMENTALLY FRIENDLY THAN M. T. B. E. BOTH THE OIL INDUSTRY AND ENVIRONMENTALISTS IN A RARE ALLIANCE ARE OPPOSED TO THE ETHANOL MANDATE SO WHY WAS IT ISSUED BECAUSE POLITICS INEVITABLY PLAYS A LARGE ROLE WHEN GOVERNMENT STARTS DICTATING TO THE PRIVATE SECTOR IN THIS CASE THE DOMINANT POLITICAL PLAYER WAS DWAYNE ANDREAS CHAIRMAN OF ARCHER DANIELS MIDLAND COMPANY THE ILLINOIS GIANT THAT PRODUCES TWO THIRDS OF THE NATION'S ETHANOL MR. ANDREAS HAS LONG BEEN A MAJOR POLITICAL DONOR BEFORE NINETEEN NINETY TWO MOST OF HIS MONEY WENT TO REPUBLICANS THEN PRESIDENT BUSH FLOATED AN EARLIER VERSION OF THE ETHANOL MANDATE JUST A MONTH BEFORE THE LAST PRESIDENTIAL ELECTION BUT NOW MR. ANDREAS HAS SWITCHED HIS GENEROSITY TO DEMOCRATS ON JUNE TWENTY SECOND HE PERSONALLY CHIPPED IN ONE HUNDRED THOUSAND DOLLARS TO THE DEMOCRATIC PARTY AT A FUND RAISING DINNER THAT NETTED TWO point FIVE MILLION DOLLARS JUST EIGHT DAYS LATER E. P. A. ACTING UNDER WHITE HOUSE ORDERS ISSUED ITS ETHANOL MANDATE BUT THE ETHANOL DECISION ONLY TRIGGERED A LENGTHY POLITICAL AND LEGAL FIGHT THAT PRIMARILY BENEFITS LAWYERS AND LOBBYISTS OPPONENTS OF THE MANDATE ASKED THE SENATE TO DENY THE E. P. A. FUNDS FOR ENFORCING THE MANDATE ON AUGUST THIRD THE WORLD'S GREATEST DELIBERATIVE BODY SPLIT FIFTY TO FIFTY ON THE QUESTION VICE PRESIDENT AL GORE HAD TO CAST A TIE BREAKING VOTE IN FAVOR OF A. D. M. OOPS ETHANOL THE OIL COMPANIES SUED ARGUING THAT THE E. P. A. EXCEEDED ITS AUTHORITY UNDER THE CLEAN AIR ACT BY MANDATING WHAT TYPE OF OXYGENATE THEY MUST USE THE D. C. COURT OF APPEALS FOUND THAT ARGUMENT COMPELLING ENOUGH RECENTLY TO ISSUE AN EMERGENCY STAY OF THE ETHANOL MANDATE PENDING FULL REVIEW NEXT YEAR NO MATTER WHAT HAPPENS IN THE ETHANOL CASE THE REFORMULATED GASOLINE REQUIREMENT MARCHES FORWARD AHEAD LIE A COMPLICATED ENFORCEMENT REGIME HIGHER PUMP PRICES IN JANUARY AND ETERNAL SUBSIDIES VIA EVERYONE'S TAX RETURN ALL THIS FOR A GOAL THAT EVEN SOME ENVIRONMENTALISTS ADMIT IS OF DUBIOUS VALUE WE WONDER IS THIS ANY WAY TO RUN AN ENVIRONMENTAL POLICY AND IF NOT WHEN WILL WE GET A CONGRESS WILLING TO DO SOMETHING ABOUT IT THE CLINTON ADMINISTRATION HAS SPENT A LOT OF ITS ENERGY PLAYING HIGH NOON OVER JAPAN'S TRADE SURPLUS FIFTEEN MONTHS OF BARGAINING FINALLY PRODUCED WHAT WAS DESCRIBED AS A PARTIAL DEAL ON SATURDAY ENOUGH OF AN AGREEMENT TO POSTPONE THREATENED U. S. SANCTIONS AGAINST JAPANESE EXPORTS TO THE U. S. THE ELEVENTH HOUR CEASE FIRE SUGGESTED THAT THE BRINKMANSHIP THAT HAS BEEN ONE CAUSE OF NERVOUSNESS IN GLOBAL SECURITY MARKETS THIS YEAR WAS NEVER INTENDED BY EITHER SIDE TO RESULT IN ACTUAL BLOODSHED THE U. S. NOW WILL SPEND SOME TIME STUDYING THE MOST CONTENTIOUS UNSETTLED ISSUE AUTO PARTS TRADE BEFORE MAKING ANOTHER RUN AT THE JAPANESE BUT LET US CALL AN INTERMISSION FROM THIS CONTINUING MELODRAMA TO LOOK AT A LESSON FROM THE REAL WORLD ABOUT THE NATURE OF COMPETITIVENESS EVEN AS WASHINGTON IS BEATING ON THE JAPANESE TO BUY MORE AUTO PARTS BRITISH GAS AND SCOTT PAPER BECAME THE LATEST MULTINATIONALS TO DELIST FROM THE TOKYO STOCK EXCHANGE THAT BRINGS TO SEVENTEEN THE NUMBER OF FOREIGN COMPANIES QUITTING THIS YEAR ONLY NINETY TWO FOREIGNERS WILL BE LEFT ON THE TOKYO BOURSE DOWN FROM ONE HUNDRED TWENTY FIVE FOUR YEARS AGO ONCE NEW YORK AND LONDON WERE CONSIDERED TOKYO'S RIVALS AS A GLOBAL FINANCIAL CENTER BUT NOW TOKYO WONDERS WHETHER IT CAN EVEN HOLD ITS REGIONAL EDGE AGAINST HONG KONG AND SINGAPORE WHAT'S GOING ON HERE IS A REAL JAPANESE TRADE PROBLEM AS OPPOSED TO THE PHANTOMS THE CLINTONITES ENJOY CHASING JAPAN HAS BEEN FOLLOWING THE U. S. AND OTHER INDUSTRIAL NATIONS IN RELOCATING LOW SKILLED JOBS TO PLACES LIKE THAILAND AND CHINA ALL IN NATURE'S PLAN AT THE SAME TIME THOUGH JAPAN SHOULD BE COPYING THE U. S. IN CREATING NEW JOBS IN BRAINY INDUSTRIES LIKE FINANCE INSTEAD IT'S EXPORTING THEM TOO GENERAL MOTORS WHICH TOOK ITSELF OFF TOKYO'S TRADING SCREENS TWO YEARS AGO GAVE A SUCCINCT RATIONALE quote IT COST TOO MUCH COMPANIES CAN SPEND UP TO HALF A MILLION DOLLARS A YEAR TRANSLATING REPORTS INTO JAPANESE TO MEET LISTING REQUIREMENTS THIS IS MAKE WORK FOR THE JAPANESE LEGAL AND ACCOUNTING PROFESSIONS BUT DOESN'T MEAN A WHIT TO INVESTORS AND FOR THE COST OF KEEPING A LISTING COMPANIES SEE VERY LITTLE ACTION IN THEIR SHARES SOME SCRATCH THEIR HEADS AND WONDER WHY JAPANESE INVESTORS ARE SLOW TO PICK UP ON FOREIGN ISSUES THEY DO BUT LIKE EVERYBODY ELSE THEY PREFER TO DO THEIR TRADING WHERE IT'S CHEAPER JAPAN SADDLES SELLERS WITH A TAX ON TRADES AND FIXED COMMISSIONS WHAT'S MORE WHILE NEW YORK AND LONDON VIE FOR THE LATEST LISTING OF A CHINESE RED CHIP NO SUCH ASIAN STOCKS ARE SOLD IN TOKYO BUREAUCRATS INSIST ON ASSETS OF ONE BILLION DOLLARS AND A HOME MARKET LISTING BEFORE THEY'LL WELCOME A FOREIGN FIRM UPSHOT TOKYO EFFECTIVELY PUTS ITSELF OUT OF THE RUNNING FOR BIG NEW INITIAL PUBLIC OFFERINGS FROM CHINA AND ELSEWHERE REGULATORY TIMIDITY DIGNIFIED AS INFORMAL GUIDANCE quote FROM THE FINANCE MINISTRY THREATENS TO MAKE TOKYO A FINANCIAL BACKWATER NEW HEDGING AND FINANCING TECHNIQUES WOULD RUN AFOUL OF THE BUREAUCRATS SO THESE ARE INVENTED ELSEWHERE WHILE JAPAN REMAINS A MUSEUM OF THE FINANCIAL SERVICES OF THE NINETEEN SEVENTIES IN OLDEN DAYS FINANCIAL REGULATORS ROLLED OUT A SAFETY NET AND THEN JUSTIFIED IT BY TELLING BANKERS AND SUCH HOW TO DO THEIR JOBS THAT DOESN'T WORK IN TODAY'S VOLATILE GLOBALIZED MARKETS BUREAUCRATS SITTING ON THEIR COMMANDING HEIGHTS CAN'T HOPE TO UNDERSTAND LET ALONE CONTROL ALL THE RISKS BEING TAKEN DAILY BY PLAYERS IN THE TRENCHES HENCE THE WORLD WIDE SOLUTION OF MAKING SURE THE PLAYERS THEMSELVES HAVE BOTH THE INCENTIVES AND FREEDOM TO MANAGE THEIR OWN RISKS JAPAN IS FALLING FURTHER AND FURTHER BEHIND IN THIS DEREGULATION TOKYO'S SELF INFLICTED WOUNDS ARE NOT THE BOON THEY MAY SEEM TO ITS COMPETITORS WHERE FINANCE JOBS ARE LOCATED IS NOT NEARLY AS IMPORTANT AS MAKING SURE ASIA'S CAPITAL IS DEPLOYED EFFICIENTLY AND PRODUCTIVELY HONG KONG SINGAPORE AND THE REST WOULD ONLY BENEFIT IF TOKYO WERE GIVING THEM A BETTER RUN FOR THE MONEY THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN WAS FOUNDED IN ONE THOUSAND EIGHT HUNDRED EIGHTY ONE TO FOSTER EXCELLENCE IN WOMEN'S EDUCATION IN RECENT YEARS HOWEVER ITS LEADERSHIP HAS PUT THE ORGANIZATION'S LONGSTANDING REPUTATION FOR PROFESSIONALISM AND PROBITY IN QUESTION BY AGGRESSIVELY PROMOTING THE SENSATIONAL BUT EMPIRICALLY UNFOUNDED THESIS THAT GENDER BIAS IS CAUSING A DEBILITATING LOSS OF SELF ESTEEM IN OUR NATION'S SCHOOLGIRLS IN NINETEEN NINETY ONE THE AAUW ANNOUNCED THE RESULTS OF ITS SURVEY SHORTCHANGING GIRLS SHORTCHANGING AMERICA THE CONCLUSION AMERICAN GIRLS DO NOT BELIEVE IN THEMSELVES A MASSIVE AND EFFECTIVE MEDIA BLITZ SPREAD THE WORD THAT THE ORGANIZATION HAD UNCOVERED quote AN UNACKNOWLEDGED AMERICAN TRAGEDY GLORIA STEINEM ANNA QUINDLEN AND OTHER PROMINENT FEMINIST WRITERS SOUNDED THE ALARM IN THE MEANTIME THE AAUW JETTISONED ITS STARCHED IMAGE YOU CAN NOW CALL AN EIGHT HUNDRED NUMBER TO ORDER AAUW GENDER BIAS PRODUCTS SUCH AS SHORTCHANGING GIRLS T. SHIRTS AND COFFEE MUGS LATELY THE SURVEY'S RESULTS HAVE TAKEN ON NEW LIFE A NEW BOOK BY PEGGY ORENSTEIN TITLED SCHOOLGIRLS quote INSPIRED BY THE AAUW SURVEY ATTEMPTS TO ILLUSTRATE ITS CONCLUSIONS WITH ON THE SCENE REPORTS FROM TWO CALIFORNIA MIDDLE SCHOOLS AS MIGHT BE EXPECTED MS. ORENSTEIN'S FINDINGS HAVE BEEN TREATED WITH REVERENTIAL RESPECT BY REPORTERS AND T. V. HOSTS THE EFFECT HAS BEEN TO REAFFIRM THE SCIENTIFIC VALIDITY OF THE IDEA THAT SCHOOLGIRLS SUFFER FROM LOW SELF ESTEEM IT IS PERHAPS TIME TO REMIND OURSELVES JUST HOW BAD THE AAUW SURVEY REALLY IS SOON AFTER THE STUDY BEGAN TO MAKE HEADLINES IN NINETEEN NINETY ONE SCIENCE NEWS RAN A STORY NOTING THE SKEPTICISM OF LEADING RESEARCHERS TOWARD ITS FINDINGS INDEED THE MAJORITY OF SCHOLARS IN THE FIELD OF ADOLESCENT DEVELOPMENT SEE NO SIGNIFICANT GENDER DIFFERENCE IN SELF ESTEEM WHAT THE AAUW STUDY RELIES ON INSTEAD OF VERIFIABLE SCIENCE IS BOGUS INFERENCE AND SHODDY METHODOLOGY A GLAMOUR GAP MOST KIDS DO NOT HAVE THE TALENT AND DRIVE TO BE ROCK STARS THE SENSIBLE ONES KNOW IT THE NUMBER ONE CAREER ASPIRATION AMONG GIRLS BY THE WAY WAS LAWYER WHAT THE RESPONSES OF THE CHILDREN SUGGEST AND WHAT MANY EXPERTS ON ADOLESCENT DEVELOPMENT WILL TELL YOU IS THAT GIRLS MATURE EARLIER THAN BOYS WHO AT THIS AGE APPARENTLY SUFFER FROM A quote REALITY GAP THE AAUW WAS CAREFUL NOT TO PUBLICIZE ONE VERY AWKWARD FINDING AFRICAN AMERICAN BOYS WHO ARE EDUCATIONALLY MOST AT RISK SCORED HIGHEST OF ALL ON THE AAUW'S SELF ESTEEM INDEXES THIS FINDING CASTS DOUBT ON THE CRITICAL ASSUMPTION THAT WHAT THE AAUW IS MEASURING AS SELF ESTEEM IS LINKED TO ACADEMIC AND CAREER ACHIEVEMENT THE AAUW'S TEAMS OF SCHOLARS quote ARE DISTORTING THE ORIGINAL SOURCE HERE IS WHAT THE SOURCE THEY CITE BUT DO NOT QUOTE ACTUALLY SAYS BOYS PARTICULARLY LOW ACHIEVING BOYS RECEIVE EIGHT TO TEN TIMES AS MANY REPRIMANDS AS DO THEIR FEMALE CLASSMATES WHEN BOTH GIRLS AND BOYS ARE MISBEHAVING EQUALLY BOYS STILL RECEIVE MORE FREQUENT DISCIPLINE HAVING SURVEYED THREE THOUSAND CHILDREN THE AAUW DECLARED THAT GIRLS ARE UNDERVALUED SILENCED AND IGNORED BY THEIR MOSTLY FEMALE TEACHERS BUT ACCORDING TO THE EDUCATION DEPARTMENT'S NINETEEN EIGHTY EIGHT AND NINETEEN NINETY LONGITUDINAL STUDY OF TWENTY FIVE THOUSAND EIGHTH TO TENTH GRADERS MORE GIRLS THAN BOYS FEEL THE TEACHER IS INTERESTED IN THEM AND BY TENTH GRADE SEVENTY TWO percent OF GIRLS COMPARED WITH SIXTY EIGHT percent OF BOYS SAID THE quote TEACHERS LISTENED TO WHAT I HAVE TO SAY PERHAPS MOST IMPORTANT THE EDUCATION DEPARTMENT'S DIGEST OF EDUCATION STATISTICS AND CONDITION OF EDUCATION SHOW THAT BOYS ARE NOT DOING BETTER THAN GIRLS FAR MORE BOYS THAN GIRLS SUFFER FROM LEARNING DISABILITIES DELINQUENCY ALCOHOLISM AND DRUG ABUSE FIVE TIMES AS MANY BOYS AS GIRLS COMMIT SUICIDE GIRLS GET BETTER GRADES MORE GIRLS GRADUATE FROM HIGH SCHOOL AND COLLEGE EVEN THE FREQUENTLY CITED CLAIM THAT GIRLS SCORE LOWER ON STANDARDIZED TESTS IS MISLEADING IN THE NINETEEN NINETY TWO NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS TEST OF SEVENTEEN YEAR OLDS BOYS OUTPERFORMED GIRLS BY FOUR POINTS IN MATH AND TEN POINTS IN SCIENCE BUT GIRLS MORE STRIKINGLY OUTPERFORMED BOYS BY TWELVE POINTS IN READING AND SEVENTEEN POINTS IN WRITING GIRLS ARE CATCHING UP IN MATH AND SCIENCE BOYS CONTINUE TO LAG FAR BEHIND IN READING AND WRITING YET EVEN IN THE FACE OF SUCH EVIDENCE THE LOW SELF ESTEEM MYTH PERSISTS WHY ONE REASON MAY BE THE SENSATIONALISM WITH WHICH IT IS PRESENTED IN FAILING AT FAIRNESS HOW AMERICA'S SCHOOLS CHEAT GIRLS NINETEEN NINETY FOUR MYRA AND DAVID SADKER TWO PRINCIPAL AAUW RESEARCHERS PREDICT THE FATE OF A SIX YEAR OLD GIRL ON TOP OF A PLAYGROUND SLIDE THERE SHE STOOD ON HER STURDY LEGS WITH HER HEAD THROWN BACK AND HER ARMS FLUNG WIDE FULL OF ENERGY SELF RELIANCE AND PURPOSE SHE FEELS CONFIDENT ABOUT WHAT SHE CAN DO AND WHO SHE CAN BECOME PHOTOGRAPHED AT TWELVE INSTEAD OF SIX SHE WOULD HAVE BEEN LOOKING AT THE GROUND INSTEAD OF THE SKY HER SENSE OF SELF WORTH WOULD HAVE BEEN AN ACCELERATING DOWNWARD SPIRAL quote WRITING IN MIRABELLA JANE O'REILLY A FOUNDER OF MS. MAGAZINE CONTRASTS TWO GROUPS OF GIRLS PLAYING AT A LAKE SHORE THE YOUNGER ARDENT VITAL AND CONFIDENT THE OLDER GIRLS MANNERED ANXIOUS AND DOUBTFUL MS. O'REILLY CAN quote PRACTICALLY SEE THE OLDER GIRLS' SELF ESTEEM DRAINING AWAY WITH THE RIVULETS OF LAKE WATER RUNNING DOWN THEIR LEGS ANITA DIAMANT IN PARENTING MAGAZINE SAYS THAT SHE WENT ON RED ALERT SEARCHING FOR WAYS TO PROTECT MY DAUGHTER'S GOD GIVEN SPARKLE AND SNAP SUCH OVERHEATED RHETORIC HAS HAD ITS EFFECT IN POPULAR CULTURE AS WE HAVE SEEN AND EVEN ON CAPITOL HILL ARMED WITH ITS CELEBRATED SURVEY THE AAUW HAS SUCCESSFULLY LOBBIED CONGRESS TO ATTACH A GENDER EQUITY PACKAGE TO THE CURRENT ELEMENTARY AND SECONDARY EDUCATION ACT THE PACKAGE PROVIDES MILLIONS OF DOLLARS FOR GENDER EQUITY PROGRAMS WORKSHOPS AND MATERIALS THAT WILL SUPPOSEDLY IN REPRESENTATIVE PATRICIA SCHROEDER'S WORDS HELP MAKE SCHOOLS AN ENVIRONMENT WHERE GIRLS ARE NURTURED AND RESPECTED WHERE THEY CAN LEARN THAT THEIR LIVES ARE VALUABLE quote IN A PASSIONATE SPEECH SENATOR EDWARD KENNEDY REFERRED TO THE AAUW'S LANDMARK RESEARCH AND VOWED THAT WHEREVER POSSIBLE WE INTEND TO INCORPORATE GENDER EQUITY PROVISIONS IN ALL FEDERAL EDUCATION PROGRAMS THE GENDER EQUITY PACKAGE HAS PASSED BOTH HOUSES AND IS NOW IN CONFERENCE COMMITTEE DESPITE ITS MANIFOLD IMPACT THE AAUW'S DATA ON SELF ESTEEM HAVE NEVER BEEN PUBLISHED AND ITS CONTROVERSIAL RESULTS HAVE NOT BEEN REPLICATED BY OTHER SCHOLARS WHEN QUERIED RECENTLY ABOUT THE VALIDITY OF ITS RESEARCH ANNE BRYANT THE AAUW'S EXECUTIVE DIRECTOR TOLD THE PHILADELPHIA INQUIRER THAT THE SELF ESTEEM RESEARCH quote WAS DUPLICATED TWENTY TO THIRTY TIMES WHEN THE REPORTER ASKED FOR A LIST OF TITLES OF PUBLISHED STUDIES MS. BRYANT COULD ONLY REFER HER TO AN ARTICLE IN SASSY MAGAZINE IN JULY SENATORS KAY BAILEY HUTCHISON R. TEXAS AND NANCY KASSEBAUM R. KANSAS BECAME SKEPTICAL ABOUT THE QUALITY OF THE RESEARCH BEHIND THE GENDER EQUITY PACKAGE THEY BEGAN TO DRAFT AN AMENDMENT REQUIRING THAT FUNDS APPROVED BY THE LEGISLATION FOR GENDER BIAS PROGRAMS BE HELD UP UNTIL THE AAUW RESEARCH WAS VERIFIED THE AAUW'S SEPTEMBER NEWSLETTER ACTION ALERT REPORTS WITH SATISFACTION THAT THIS EFFORT WAS DERAILED AAUW'S GRASSROOTS WERE ALERTED IN BOTH TEXAS AND KANSAS TO ENSURE THE IDEA DID NOT RESURFACE quote IN SUM A POLITICIZED AAUW HAS EFFECTIVELY USED ITS OWN ADVOCACY RESEARCH TO PROMOTE THE MYTH OF A PERVASIVE DEMORALIZING BIAS AGAINST SCHOOLGIRLS IT HAS CREATED A CULT OF THE PERSECUTED GIRL CHILD AMONG FEMINIST WRITERS AND IT HAS GOTTEN LEGISLATORS TO ALLOCATE MILLIONS TO ADDRESS A GENDER GAP IN THE NATION'S SCHOOLS AND TO WHAT END THE SAD FACT IS THAT THE FOCUS ON BIAS AND quote GENDER EQUITY DIVERTS ATTENTION AND RESOURCES FROM THE UNDERLYING CAUSES THAT PUT CHILDREN OF BOTH SEXES AT RISK THE INCREASING INCIVILITY VIOLENCE AND INCREASING SOCIOPATHOLOGIES IN OUR SOCIETY AND THE DECLINE IN ACADEMIC STANDARDS THE MAIN BENEFICIARIES OF CONGRESSIONAL LARGESS WILL INEVITABLY BE THE APPARATCHIKS IN THE THRIVING GENDER BIAS INDUSTRY WHO WILL BE CALLED ON TO COPE WITH THE NEWLY IDENTIFIED AMERICAN TRAGEDY OF DEFEATED SCHOOLGIRLS A TRAGEDY THAT DOES NOT EXIST MS. SOMMERS IS AUTHOR OF WHO STOLE FEMINISM quote SIMON and SCHUSTER I AM SHOCKED THAT JOHN C. COFFEE JUNIOR CHOSE TO TAR CLASS ACTION SUITS IN HIS SEPTEMBER SEVENTH EDITORIAL PAGE ARTICLE THE CORRUPTION OF THE CLASS ACTION ALTHOUGH HUNDREDS OF CLASS ACTIONS ARE FILED EACH YEAR APPROPRIATELY ATTACKING A BROAD SPECTRUM OF CORPORATE MISCONDUCT I. E. SECURITIES FRAUDS STOCKHOLDER RELATIONSHIPS ENVIRONMENTAL QUESTIONS AGE DISCRIMINATION AND LABOR RELATIONS ET CETERA PROFESSOR COFFEE HAS OFFERED NO SUBSTANTIATION OF HIS CHARGES OF THE COLLUSION HE DESCRIBED IN HIS ARTICLE OTHER THAN REFERENCE TO ONE ASBESTOS CASE AS AN ATTORNEY WHO OFTEN BRINGS PLAINTIFF'S SECURITIES OR STOCKHOLDER CLASS ACTION SUITS OR ON OCCASION DEFENDS SUCH SUITS I CANNOT ACCEPT PROFESSOR COFFEE'S ASSERTION THAT DEFENDANT'S COUNSEL COLLUDES OR ATTEMPTS TO COLLUDE WITH PLAINTIFF'S COUNSEL PRIOR TO OR SUBSEQUENT TO A LITIGATION IN ORDER TO OBTAIN A QUICK SETTLEMENT OR THAT THERE IS A BIDDING PROCESS BY WHICH SUCH CASES ARE BROUGHT AND SETTLED COMMON SENSE WOULD SUGGEST THAT IF PROFESSOR COFFEE'S SCENARIO WERE TRUE A quote REJECTED PLAINTIFF'S LAWYER WOULD BRING A COMPETING SUIT AND DERAIL THE COLLUDED SETTLEMENT IF PROFESSOR COFFEE IS TAKING INTELLECTUAL LICENSE AND CREATIVITY BASED ONLY ON HIS READING OF ONE ASBESTOS CASE HE SHOULD SO STATE JACK KEMP'S CALL EDITORIAL PAGE SEPTEMBER TWENTY THIRD FOR ACROSS THE BOARD RATE REDUCTIONS ON PERSONAL CORPORATE PAYROLL AND CAPITAL GAINS TAXES TO SUPPLEMENT THE ARMEY GINGRICH CONTRACT WITH AMERICA quote NOT ONLY MAKES GOOD ECONOMIC SENSE IT IS ALSO THE MORALLY AND POLITICALLY SENSIBLE POLICY SINCE THE PUBLIC DOES NOT SHARE THE MORAL CONVICTION OF LIBERAL DEMOCRATS THAT THE GOVERNMENT IS THE RIGHTFUL FIRST CLAIMANT UPON THE INCOMES OF INDIVIDUALS TAXPAYERS ARE JUSTIFIABLY RESENTFUL OF THE CURRENT CONFISCATORY TAX REGIME IF THEREFORE ALL TAXPAYERS ARE PROMISED A SUBSTANTIAL REDUCTION IN THEIR CURRENT INCOME TAX RATES THEY WILL NOT BE MOVED BY THE ARGUMENT THAT THE RICH ARE BENEFITING AT THEIR EXPENSE INDEED THE ACROSS THE BOARD REDUCTION COULD INCLUDE AS MR. KEMP RECOMMENDS TAXES OTHER THAN INCOME TAXES BY INCLUDING CAPITAL GAINS TAXES CORPORATE TAXES AND I WOULD ADD ESTATE TAXES IN A GENERAL AND EQUAL REDUCTION OF RATES OF FOR EXAMPLE THIRTY percent THESE PROPOSED TAX CUTS WOULD BE INSULATED FROM APPEALS TO THE POLITICS OF ENVY UNFORTUNATELY IF THE REPUBLICANS PERSIST IN PROPOSING A CAPITAL GAINS TAX CUT WITHOUT ADDITIONALLY PROPOSING AN ACROSS THE BOARD CUT IN MARGINAL INCOME TAX RATES THEY WILL BE VULNERABLE TO CHARGES OF INDIFFERENCE TO THE TAX BURDENS OF MOST AMERICANS THUS THEY ARE APT TO FIND THAT THEIR RECOMMENDED CAPITAL GAINS TAX CUT IS SUSCEPTIBLE TO THE SORT OF DEMAGOGIC POLITICAL ATTACKS THAT SENATOR GEORGE MITCHELL EMPLOYED TO DEFEAT A SIMILAR PROPOSAL IN NINETEEN EIGHTY NINE THEY MAY BELIEVE THAT THEIR PROPOSED FAMILY TAX CREDIT WILL INSULATE THEM FROM SUCH POLITICAL FALLOUT BUT VOTERS WILL WONDER WHY THEY SEEM UNWILLING TO CHALLENGE THE BUSH CLINTON TAX INCREASES AND WHETHER THEY ARE THEREFORE AS DIFFERENT AS THEY CLAIM TO BE FROM THEIR DEMOCRATIC RIVALS KENNETH TIMMERMAN MAKES A KEY OMISSION IN HIS OTHERWISE ALARMING PORTRAYAL OF IRAQ IN THE NEAR FUTURE WEST IS POISED TO REARM SADDAM EDITORIAL PAGE SEPTEMBER TWENTY SEVENTH ACCORDING TO MR. TIMMERMAN IRAQI PRESIDENT SADDAM HUSSEIN IS NOT ABANDONING HIS HEGEMONIC DREAMS quote N. OR IS SADDAM READY TO RECOGNIZE THE SOVEREIGNTY AND BORDERS OF KUWAIT YET THE RECOGNITION AND ACCEPTANCE OF THE INTERNATIONALLY DEMARCATED IRAQI KUWAITI BORDER AND KUWAITI SOVEREIGNTY ARE PRECONDITIONS FOR LIFTING SANCTIONS THAT ARE SUPPORTED BY ALL SECURITY COUNCIL MEMBERS INCLUDING RUSSIA FRANCE AND TURKEY IF MR. TIMMERMAN IS CORRECT THAT THE IRAQI GOVERNMENT WILL REFUSE TO ACCEPT THE BORDER THE REST OF HIS SCENARIO WILL NOT COME TO PASS THE REAL PROBLEM FOR THE U. S. IS THAT SADDAM MAY BE VERY WILLING TO RECOGNIZE THE BORDER IF THE END OF SANCTIONS IS IN SIGHT AT THAT POINT IT IS OPEN TO QUESTION WHETHER THE U. S. HAS ENOUGH INFLUENCE WITH ITS ALLIES TO STOP THE EASING OF SANCTIONS ALBEMARLE CORPORATION SAID IT SOLD ITS IMI TECH FOAM INSULATION UNIT TO INSPEC GROUP P. L. C. THE CHEMICAL MAKER DIDN'T DISCLOSE TERMS OF THE TRANSACTION WITH THE BRITISH CONCERN IT ALSO DIDN'T PROVIDE THE UNIT'S REVENUE THE IMI TECH UNIT WITH ABOUT SIXTY EMPLOYEES MAKES FIRE RESISTANT FOAM MATERIAL USED IN THERMAL ACOUSTICAL AND CUSHIONING APPLICATIONS ALBERMARLE WAS SPUN OFF THIS YEAR FROM FUEL ADDITIVE MAKER ETHYL CORPORATION THIS ADULT DAY CARE CONCERN CONVERTED ALL THE COMPANY'S SERIES A VOTING CONVERTIBLE PREFERRED STOCK HELD BY HEALTHSOUTH REHABILITATION CORPORATION INTO COMMON SHARES SIMULTANEOUSLY TWO CARETENDERS BOARD MEMBERS REPRESENTING HEALTHSOUTH RESIGNED THE THREE point SEVEN MILLION SHARES OF PREFERRED STOCK WERE ISSUED TO HEALTHSOUTH IN JANUARY NINETEEN NINETY TWO AS PART OF AN EQUITY FOR DEBT EXCHANGE AT THE TIME RICHARD SCRUSHY FORTY TWO YEARS OLD AND MICHAEL MARTIN THIRTY FOUR BOTH OF HEALTHSOUTH JOINED CARETENDERS' BOARD BOTH MEN WILL BE REPLACED ON THE FIVE PERSON BOARD HEALTHSOUTH OF BIRMINGHAM ALABAMA IS A PROVIDER OF REHABILITATION SERVICES WOMEN CHALLENGERS ARE HAVING TROUBLE RAISING MONEY AND THERE'S A CHANCE THE NEXT CONGRESS WILL HAVE FEWER WOMEN THAN THIS ONE A STUDY BY THE NATIONAL WOMEN'S POLITICAL CAUCUS FINDS THE MAJOR PROBLEM FACING FEMALE CANDIDATES ISN'T THEIR GENDER BUT THAT THEY USUALLY MUST RUN AGAINST PAC FUNDED INCUMBENTS WINNING HAS NOTHING TO DO WITH SEX AND EVERYTHING TO DO WITH INCUMBENCY quote SAYS STUDY AUTHOR JODY NEWMAN SHE SAYS FURTHER RESEARCH IS NEEDED ON TERM LIMITS AND OTHER MEASURES WHICH MIGHT LEVEL THE PLAYING FIELD WE'RE PLEASED WOMEN'S GROUPS ARE STARTING TO REALIZE TERM LIMITS COULD LEAD TO A MORE DIVERSE CONGRESS IN WHICH PEOPLE OTHER THAN CAREERISTS AND LAWYERS SERVE FOR POLITICAL NEWCOMERS OF ALL KINDS INCUMBENCY IS CLEARLY THE GLASS CEILING OF AMERICAN POLITICS JAPAN'S AUGUST JOBLESS RATE HELD STEADY FROM JULY AT THREE percent OF THE WORK FORCE REMAINING AT THE HIGHEST LEVEL SINCE JUNE NINETEEN EIGHTY SEVEN THE STATISTICS BUREAU OF THE PRIME MINISTER'S OFFICE REPORTED BOTH THE SEASONALLY ADJUSTED AND UNADJUSTED TOTAL JOBLESS FIGURES STOOD AT TWO MILLION IN AUGUST U. S. PHYSICAL THERAPY INCORPORATED SAID IT IS OPENING FOUR FREE STANDING OUT PATIENT CLINICS THE FOUR IN HOUSTON MERIDIAN MISSISSIPPI MIDLAND MICHIGAN AND AUSTIN TEXAS BRING TO TWENTY SEVEN SO FAR THIS YEAR THE NUMBER OF NEW CLINICS OPENED U. S. PHYSICAL THERAPY SAID THE FOUR RAISE TO FIFTY ONE THE NUMBER OF CLINICS IT OPERATES IN EIGHTEEN STATES THE FOLLOWING U. S. TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AND DOW JONES NEWS SERVICE AMERICAN APARTMENT COMMUNITIES INCORPORATED INITIAL SEVEN point NINE MILLION SHARES VIA MERRILL LYNCH and COMPANY CENTRAL TRACTOR FARM and COUNTRY INCORPORATED INITIAL SEVEN point FIVE MILLION SHARES VIA DONALDSON LUFKIN and JENRETTE SECURITIES CORPORATION CLEARNET COMMUNICATIONS INCORPORATED INITIAL SEVEN point FIVE MILLION CLASS A NON VOTING SHARES VIA PRUDENTIAL SECURITIES INCORPORATED FUSION SYSTEMS CORPORATION ONE point NINE MILLION SHARES VIA LEHMAN BROTHERS INCORPORATED GEMSTAR INTERNATIONAL GROUP LIMITED INITIAL SIX MILLION SHARES VIA LEHMAN BROTHERS HOSPITALITY INVESTMENT TRUST INCORPORATED INITIAL TEN MILLION ONE HUNDRED TEN THOUSAND SHARES VIA MORGAN STANLEY and COMPANY HUANENG POWER INTERNATIONAL INCORPORATED INITIAL THIRTY ONE MILLION TWO HUNDRED FIFTY THOUSAND AMERICAN DEPOSITARY SHARES VIA LEHMAN BROTHERS MERIDIAN SPORTS INCORPORATED INITIAL TWO point EIGHT MILLION SHARES VIA C. S. FIRST BOSTON INCORPORATED NETWORTH INCORPORATED TWO point THREE MILLION SHARES VIA ROBINSON HUMPHREY COMPANY NORTHERN STATES POWER COMPANY ONE HUNDRED FIFTY MILLION DOLLARS OF SEVEN YEAR DEBT VIA COMPETITIVE BID SIERRA HEALTH SERVICES INCORPORATED ONE point FIVE MILLION SHARES VIA BEAR STEARNS and COMPANY SPORTS and RECREATION INCORPORATED THREE MILLION SHARES VIA C. S. FIRST BOSTON SUGEN INCORPORATED INITIAL TWO point THREE MILLION SHARES VIA MORGAN STANLEY and COMPANY U. S. XPRESS ENTERPRISE INCORPORATED INITIAL TWO point NINE MILLION SHARES VIA ALEXANDER BROWN and SONS INCORPORATED MARYLAND ONE HUNDRED SIXTY MILLION DOLLARS OF NINETEEN NINETY FOUR THIRD SERIES STATE AND LOCAL FACILITIES LOAN GENERAL OBLIGATION BONDS VIA COMPETITIVE BID MONTANA SEVENTY point ONE MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID SAN JOAQUIN COUNTY CALIFORNIA FIFTY FOUR MILLION DOLLARS OF NINETEEN NINETY FOUR TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID CALIFORNIA HOUSING FINANCE AGENCY ONE HUNDRED SIXTY MILLION DOLLARS OF SECURITIES INCLUDING EIGHTY ONE MILLION DOLLARS OF SERIES F. ONE HOME MORTGAGE REVENUE BONDS THIRTY SIX MILLION DOLLARS OF SERIES F. TWO VARIABLE RATE MORTGAGE REVENUE BONDS AND FORTY THREE MILLION DOLLARS OF SERIES F. THREE MANDATORY TENDER BONDS VIA A GOLDMAN SACHS and COMPANY GROUP CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY NINETY EIGHT MILLION DOLLARS OF CERTIFICATES OF PARTICIPATION VIA A MORGAN STANLEY and COMPANY GROUP NEW YORK STATE THRUWAY AUTHORITY TWO HUNDRED FORTY point ONE MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR B. HIGHWAY AND BRIDGE TRUST FUND BONDS VIA A DILLON READ and COMPANY SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY SIXTY EIGHT MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR A POWER SUPPLY SYSTEM REVENUE BONDS VIA A MORGAN STANLEY GROUP CONSUMER PRICE INFLATION IN ROMANIA CONTINUED TO MODERATE IN AUGUST THE HEAD OF THE NATIONAL STATISTICS COMMISSION SAID CONSUMER PRICES IN AUGUST INCREASED ONE point EIGHT percent FROM JULY FORTY TWO percent FROM DECEMBER NINETEEN NINETY THREE AND ONE HUNDRED TWENTY FOUR point SIX percent FROM AUGUST NINETEEN NINETY THREE ALEXANDRU RADOCEA PRESIDENT OF THE COMMISSION SAID THE AVERAGE MONTHLY INFLATION RATE IN JANUARY THROUGH AUGUST NINETEEN NINETY FOUR WAS FOUR point FIVE percent COMPARED WITH TWELVE point ONE percent IN THE CORRESPONDING PERIOD OF NINETEEN NINETY THREE FOOD PRICES IN AUGUST INCREASED ZERO point FOUR percent PERCENT NONFOOD PRICES ROSE TWO point EIGHT percent AND PRICES FOR SERVICES CLIMBED THREE point EIGHT percent MR. RADOCEA SAID PREMIER NICOLAE VACAROIU HAS PROMISED TO KEEP THE ANNUAL INFLATION RATE AT AROUND SEVENTY FIVE percent FURR'S slash BISHOP'S INCORPORATED AGREED TO LEASE ITS EL PASO BAR B. QUE COMPANY OPERATIONS TO M. and B. RESTAURANTS A PRIVATE INVESTMENT GROUP CONTROLLED BY WILLIAM PRATHER VICE CHAIRMAN OF THE RESTAURANT OPERATOR FURR'S slash BISHOP'S SAID THE LEASE AGREEMENT INCLUDES A TRADEMARK LICENSE AND AN OPTION FOR M. and B. TO BUY THE UNIT M. and B. PLANS TO OPEN THIRTY ONE NEW RESTAURANTS DURING THE NINE YEAR LEASE AS THE WORLD WIDE OUTLOOK FOR WHEAT CROPS DARKENS BY THE DAY PROSPECTS FOR PRICES CONTINUE TO BRIGHTEN ON FRIDAY HARD WINTER WHEAT FOR MARCH DELIVERY SET A NEW CONTRACT HIGH JUMPING THIRTEEN point SEVEN FIVE CENTS TO CLOSE AT FOUR point ONE ONE OH OH DOLLARS A BUSHEL MANY ANALYSTS ARE NOW CALLING FOR THE MARCH WHEAT CONTRACT TRADED ON THE CHICAGO BOARD OF TRADE TO JUMP AS MUCH AS TEN percent TO TOP FOUR DOLLARS AND FIFTY CENTS A BUSHEL THE LATEST SHOCK TO THE WHEAT MARKETS CAME LATE THURSDAY WHEN THE AGRICULTURE DEPARTMENT RELEASED DATA CALCULATING THAT U. S. WHEAT INVENTORIES AT SEPTEMBER FIRST TOTALED ONLY TWO point OH SIX THREE BILLION BUSHELS NINE point FIVE percent SHY OF THE TWO point TWO EIGHT BILLION BUSHELS ANALYSTS HAD BEEN EXPECTING AT THOSE STOCK LEVELS WE CAN'T RULE OUT WHEAT HITTING FOUR DOLLARS AND FIFTY CENTS OR SO OVER THE WINTER SAID DANIEL BASSE MARKET RESEARCH DIRECTOR OF AGRESOURCE COMPANY A CHICAGO BASED AGRICULTURAL COMMODITY RESEARCH FIRM THE STOCK FIGURES WERE HURT FURTHER BY LOW LEFT OVER STOCKPILES FROM NINETEEN NINETY THREE AND LOWER THAN EXPECTED YIELDS FROM SPRING AND DURUM WHEAT HARVESTS quote WE'RE FACING THE TOUGHEST WORLD SITUATION IN THE WHEAT MARKET THAT WE'VE SEEN IN FORTY YEARS OR SO SAID MICKEY LUTH GRAINS ANALYST AT MERRILL LYNCH and COMPANY IN CHICAGO AS IF TIGHT U. S. SUPPLIES WEREN'T BAD ENOUGH WHEAT STOCKS WORLD WIDE ARE LIKELY TO DROP TO THEIR LOWEST LEVELS IN ABOUT FOURTEEN YEARS ACCORDING TO CALCULATIONS BY THE LONDON BASED INTERNATIONAL WHEAT COUNCIL WHICH REPRESENTS PRODUCING AND CONSUMING NATIONS THE ORGANIZATION WHICH HAS STEADILY SLASHED ITS FORECASTS FOR WORLD WHEAT HARVESTS THIS YEAR NOW EXPECTS GLOBAL WHEAT CONSUMPTION TO TOTAL TWENTY point THREE NINE BILLION BUSHELS IN THE TWELVE MONTHS ENDING JUNE NINETEEN NINETY FIVE THAT'S SEVEN HUNDRED SEVENTY ONE point SIX MILLION BUSHELS BELOW ESTIMATED PRODUCTION IN THE SAME PERIOD AS A RESULT THE IWC BELIEVES WORLD WHEAT INVENTORIES WILL DIVE TO THREE point NINE THREE BILLION BUSHELS BY NEXT JUNE AUSTRALIA'S CROP HAS BEEN DEVASTATED BY DROUGHT THAT COUNTRY IS NOW EXPECTING TO HARVEST THREE HUNDRED SIXTY SEVEN point SEVEN MILLION BUSHELS IN THE CROP YEAR ENDING NEXT JUNE DOWN TWO HUNDRED TWENTY SEVEN point EIGHT MILLION BUSHELS OR ONLY SIXTY TWO percent OF LAST YEAR'S PRODUCTION THE IWC BELIEVES IN CANADA WHEAT PRODUCTION WILL SHRINK NEARLY FIFTEEN percent THIS YEAR HITTING ITS LOWEST LEVEL SINCE NINETEEN EIGHTY EIGHT FARMERS HAVE BEEN SWITCHING FROM PLANTING WHEAT TO GROWING MORE PROFITABLE CROPS LIKE CANOLA FLAXSEED AND SOYBEANS SAID WILLIAM DE MARIA ASSISTANT EXECUTIVE DIRECTOR OF THE IWC MEANWHILE ONE OF THE MARKET'S BIGGEST PROBLEM AREAS IS THE FORMER SOVIET UNION WHEAT OUTPUT FROM RUSSIA THE UKRAINE AND KAZAKHSTAN WILL DROP THIRTEEN point TWO percent THIS YEAR THE IWC CALCULATES TO TWO point SIX THREE BILLION BUSHELS THE RUSSIAN WHEAT CROP WILL BE THE WORST IN SEVEN YEARS SAID YURI MAKAROV AN ECONOMIST AT THE IWC HE SAID FARMERS ARE BLAMING THE ESTIMATED FOURTEEN percent DROP IN PRODUCTION ON AN ABNORMALLY COLD SUMMER A SHORTAGE OF FERTILIZERS LACK OF MONEY TO INVEST IN EQUIPMENT AND POOR TRANSPORTATION TO CARRY CROPS TO MARKET CONSEQUENTLY DEMAND FOR IMPORTED WHEAT IN RUSSIA AND THE OTHER FORMER SOVIET REPUBLICS IS SET TO GROW EXPONENTIALLY WITH RUSSIA'S SHARE NEARLY DOUBLING TO REACH ONE HUNDRED FORTY SEVEN MILLION BUSHELS THE IWC ALSO EXPECTS CHINESE IMPORTS TO DOUBLE IN THE WAKE OF FLOODS IN THAT COUNTRY SOME ANALYSTS SAY THE U. S. COULD ATTEMPT TO MAKE WHEAT LESS ATTRACTIVE TO OVERSEAS BUYERS BY TINKERING WITH GRAIN EXPORT SUBSIDY PROGRAMS A LOT OF FUTURE PRICE ACTION DEPENDS ON U. S. D. A. EXPORT POLICY AND ON WHETHER AND HOW THEY ATTEMPT TO RATION DEMAND BY RAISING PRICES quote SAID AGRESOURCE'S MR. BASSE OTHER ANALYSTS LIKE MERRILL'S MR. LUTH BELIEVE THE WORLD SHORTAGES ARE SO ACUTE THAT FOREIGN BUYERS MAY HAVE NO OPTION BUT TO PAY THE HIGHER PRICES THE U. S. GOVERNMENT COULD DEMAND IT'S BECOMING A SELLER'S MARKET RIGHT NOW MR. LUTH CONTENDS THE REALITY IS THAT THESE GUYS DON'T HAVE A LOT OF ALTERNATIVES PRECIOUS METALS AND COPPER AS DETAILS OF THE COMMODITY FUTURES TRADING COMMISSION'S BIWEEKLY INSIDER TRADING REPORT TRICKLE INTO THE MARKET THIS WEEK PRECIOUS METALS AND COPPER MAY BE UNDERCUT ANALYSTS SAY THE REPORT SHOWS THAT COMMODITY FUNDS AND OTHER SPECULATORS PLACED MASSIVE BULLISH BETS ON GOLD SILVER AND COPPER IN THE TWO WEEKS ENDED SEPTEMBER TWENTY SEVENTH WHILE COMMERCIAL USERS SUCH AS MINING COMPANIES AND JEWELRY MAKERS BACKED AWAY FROM THOSE MARKETS IN RECENT WEEKS PRICES OF THE THREE METALS HAVE CLIMBED TO NEW HIGHS WITH GOLD BRIEFLY TOPPING FOUR HUNDRED DOLLARS AN OUNCE FOR THE FIRST TIME THIS YEAR quote THE TRADE OR COMMERCIAL BUYERS ARE SENDING A VERY VERY BEARISH SIGNAL ON PRECIOUS METALS IN PARTICULAR SAID BERNARD SAVAIKO SENIOR ANALYST AT PAINEWEBBER INCORPORATED IN NEW YORK CANNY TRADERS SCAN THE SO CALLED COMMITMENT OF TRADERS REPORT FOR HINTS OF WHICH MARKETS MIGHT BE RIPE FOR A FALL AND WHICH MIGHT BE POISED TO RALLY ANALYSTS GENERALLY INTERPRET LARGE BUYING BY SPECULATORS AS A SIGNAL THAT THE MARKET IS GETTING FROTHY ESPECIALLY WHEN COMMERCIAL USERS ARE SELLING AT THE SAME TIME NEIL BEHRMANN CONTRIBUTED TO THIS ARTICLE HI LO AUTOMOTIVE INCORPORATED SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE REDDI BRAKE SUPPLY CORPORATION'S WESCO DIVISION FOR AN ESTIMATED TEN MILLION DOLLARS IN CASH AND STOCK FINAL TERMS ARE PENDING WESCO OPERATES EIGHT AUTO PARTS STORES IN SOUTHERN CALIFORNIA HI LO HAS ONE HUNDRED SIXTY TWO AUTO PARTS STORES IN TEXAS AND LOUISIANA THE JUSTICE DEPARTMENT SAID IT HAS BEGUN A PRELIMINARY ANTITRUST INVESTIGATION INTO THE ON LINE LEGAL RESEARCH SERVICES BUSINESS THREE COMPANIES CONTACTED BY GOVERNMENT INVESTIGATORS SAID THE INQUIRY'S FOCUS IS WEST PUBLISHING COMPANY A EAGAN MINNESOTA PUBLISHER OF THE WESTLAW LEGAL RESEARCH DATABASE WHILE GERRY SIKORSKI AN ATTORNEY FOR WEST SAID THAT WE HAVE BEEN IN TOUCH WITH THE JUSTICE DEPARTMENT REGARDING THEIR INQUIRY AND THEIR INVESTIGATION INTO THE COMPUTER ASSISTED LEGAL RESEARCH INDUSTRY HE ALSO SAID THAT WE SPECIFICALLY ASKED IF WEST WAS THE TARGET AND THEY SAID NO IT IS A GENERAL INQUIRY quote MEAD CORPORATION A DAYTON OHIO COMPANY THAT IS WEST'S BIGGEST COMPETITOR WITH ITS LEXIS SERVICE SAID IT HAS NOT BEEN CONTACTED IN CONNECTION WITH THE PROBE MR. SIKORSKI SAID HE BELIEVES THAT WEST WAS FIRST INFORMED ABOUT THE INVESTIGATION BY THE JUSTICE DEPARTMENT LAST WEDNESDAY WEST HAS BEEN CRITICIZED IN THE PAST BY SMALLER COMPANIES FOR THE TIGHT GRIP IT HAS ON CASE LAW CITATION ESSENTIALLY A NUMBERING SYSTEM THAT IS THE DE FACTO STANDARD FOR CITING INFORMATION GLEANED FROM COURT SUITS AND LEGAL OPINIONS WEST A CLOSELY HELD CONCERN HAS A COPYRIGHT ON THE CITATION SYSTEM AND HAS AGRESSIVELY LITIGATED TO PREVENT COMPETITORS FROM USING IT IN THEIR OWN LEGAL RESEARCH PRODUCTS SMALL COMPANIES SAY A PUBLIC STANDARD FOR CASE LAW CITATION ACCESSIBLE TO ALL RESEARCH PROVIDERS WOULD ALLOW INNOVATIVE AND CHEAPER ALTERNATIVES TO WESTLAW THE JUSTICE DEPARTMENT ASKED ME TO TELL THEM WHAT I DID AND ANY TIMES I LOST BUSINESS BECAUSE OF WEST'S POSITION ON THE CITATIONS SAYS VIRGINIA BEDFORD OWNER OF LEGAL SOFTWARE SYSTEMS INCORPORATED A COLUMBIA S. C. PROVIDER OF LEGAL RESEARCH MS. BEDFORD SAID THE JUSTICE DEPARTMENT FIRST CONTACTED HER ABOUT TEN DAYS AGO SHE SAID SHE HAS LOST BUSINESS BECAUSE SHE DIDN'T HAVE ACCESS TO WEST'S CITATION SYSTEM JOSEPH ACTON PRESIDENT OF TIMELINE PUBLISHING COMPANY A BELLEVUE WASHINGTON PROVIDER OF ON LINE LEGAL INFORMATION SAID THE JUSTICE DEPARTMENT ALSO CONTACTED HIM ABOUT TEN DAYS AGO I KNOW THAT THEY'VE SPOKEN WITH A NUMBER OF PUBLISHERS AT LEAST SIX THAT I'M AWARE OF ABOUT WEST HE SAID LISA RICHARDS OWNER OF C. D. LAW INCORPORATED A MARLOWE N. H. LEGAL RESEARCH PROVIDER SAID THE JUSTICE DEPARTMENT CONTACTED HER WITHIN THE LAST MONTH SHE SAID THE AGENCY ASKED IF SHE FELT THAT WEST'S PRACTICES WERE ANTICOMPETITIVE MS. RICHARDS SAID SHE TOLD INVESTIGATORS THAT SHE BELIEVED WEST WAS ANTICOMPETITIVE CITING A RECENT DEAL SHE LOST WITH THE STATE OF MAINE SHE SAID THAT WEST UNDERBID HER COMPANY AFTER IT LEARNED ABOUT THE CONTRACT WEST ALSO DISTRIBUTES INFORMATION SERVICES OWNED BY DOW JONES and COMPANY PUBLISHER OF THIS NEWSPAPER EARLY LAST MONTH THE JUSTICE DEPARTMENT CAME UNDER FIRE FROM SMALL BUSINESSES AND PUBLIC INTEREST GROUPS THAT SAID PLANS FOR A FIFTY MILLION DOLLAR CONTRACT FROM THE AGENCY FOR LEGAL RESEARCH WERE SKEWED IN FAVOR OF WEST AND MEAD WHICH DOMINATE THE MARKET SINCE THEN THE JUSTICE DEPARTMENT HAS SAID IT WILL EXPLORE WAYS OF IMPROVING PUBLIC ACCESS TO LEGAL RESEARCH INCLUDING DEVELOPMENT OF A NONPROPRIETARY CITATION SYSTEM THE AGENCY HAS SCHEDULED AN OCTOBER NINETEENTH CONFERENCE IN WASHINGTON TO CONSIDER WAYS OF IMPLEMENTING SUCH A SYSTEM OMNICARE INCORPORATED COMPLETED ITS PREVIOUSLY ANNOUNCED THIRTY EIGHT point TWO MILLION DOLLAR ACQUISITION OF CLOSELY HELD EVERGREEN PHARMACEUTICAL INCORPORATED OF KIRKLAND WASHINGTON OMNICARE PROVIDES PROFESSIONAL PHARMACY AND RELATED CONSULTING SERVICES FOR LONG TERM CARE INSTITUTIONS IN THE HIT MOVIE quote THE MASK SPECIAL EFFECTS CREATED BY ALIAS RESEARCH INCORPORATED SOFTWARE MAKE ACTOR JIM CARREY'S EYES BULGE AND HIS TONGUE UNFURL ACROSS A TABLE INVESTORS AND ANALYSTS ARE HAVING MUCH THE SAME REACTION TO ALIAS'S RECENT EARNINGS ITS STOCK PRICE HAS GAINED THIRTY FIVE percent IN THE PAST FIVE WEEKS FRIDAY IT CLOSED AT NINETEEN AND ONE HALF DOWN ONE HALF ON THE NASDAQ STOCK MARKET ANALYSTS HAVE BOOSTED THEIR EARNINGS ESTIMATES FOR THE CURRENT FISCAL YEAR ENDING JANUARY THIRTY FIRST NINETEEN NINETY FIVE AND REITERATED BUY RECOMMENDATIONS IT'S ALL A FAR CRY FROM ALIAS'S SITUATION THREE YEARS AGO WHEN THE STOCK CRASHED TO THREE FROM TWENTY NINE AND FREE SPENDING TOP MANAGEMENT WAS COMPLETELY REPLACED ANALYSTS SAY ALIAS NOW HAS ITS MANAGERIAL AND FISCAL HOUSE IN ORDER AND ALTHOUGH NOTHING IS CERTAIN IN THE VOLATILE WORLD OF COMPUTER SOFTWARE THE COMPANY'S NEW PRODUCTS APPEAR TO BE HITS THE STOCK IS STARTING TO MOVE HIGHER IN ANTICIPATION OF EVENTS IN THE DESIGN MARKETS THAT SIDE OF THEIR MARKET IS GOING TO GROW quote LEONARD BRECKEN AN ANALYST AT OPPENHEIMER and COMPANY IN NEW YORK PREDICTED THE COMPANY WILL DEMONSTRATE IN NOVEMBER THE NEXT GENERATION OF ITS AUTOSTUDIO AND STUDIOPAINT AUTOMOBILE DESIGN SOFTWARE AT THE AUTOFACT TRADE SHOW IN DETROIT PHIL NERAY ALIAS DIRECTOR OF MARKETING SAID WHILE MR. NERAY WAS RELUCTANT TO GO INTO DETAIL ANALYSTS SAY THE NEW VERSIONS WILL EXPAND SIGNIFICANTLY THE SOFTWARE'S CAPABILITIES THEY ARE GOING TO HAVE A THREE DIMENSIONAL PAINT SOFTWARE PACKAGE NOW THEY HAVE A COLORATION PACKAGE THAT'S TWO DIMENSIONAL THIS WOULD ALLOW CONCEPTUAL MODELING SAID JOHN ROSSI AN ANALYST AT ROBERTSON STEPHENS and COMPANY IN SAN FRANCISCO COMPETITION IN THE AUTO DESIGN SOFTWARE FIELD COMES FROM SALT LAKE CITY BASED EVANS and SUTHERLAND COMPUTER CORPORATION BUT THEY HAVE A STAGNANT PRODUCT LINE AND ALIAS APPEARS TO BE IN A DOMINANT POSITION MR. ROSSI SAID WHILE EVANS and SUTHERLAND ALREADY HAS A SIZABLE BASE OF LOYAL CUSTOMERS CHIEF AMONG THEM FORD MOTOR COMPANY ALIAS HAS ALSO SOLD TO FORD MR. ROSSI NOTED THE COMPANY'S MAIN COMPETITION IS quote PENCIL AND PAPER MR. NERAY SAYS THE VAST MAJORITY OF DESIGNERS DON'T USE AUTOMATED TOOLS THEY'RE STILL USING SKETCHES AND AIRBRUSHES HE ASSERTED IN ITS MARKETING EFFORTS ALIAS TRIES TO PERSUADE AUTO DESIGNERS THEY CAN EASILY GET THEIR IDEAS INTO A COMPUTER THEN TRANSFER THE DESIGN TO A C. A. D. CAM COMPUTER SYSTEM FOR THE ENGINEERING STAFF TO WORK ON MR. NERAY SAID AT THE AUTOFACT SHOW ALIAS WILL ALSO BE INTRODUCING THE NEWEST VERSION OF STUDIO ITS DESIGN SOFTWARE FOR PRODUCTS OTHER THAN AUTOMOBILES MR. NERAY SAID APPLE COMPUTER INCORPORATED USED STUDIO TO DESIGN ITS POWERBOOK COMPUTER AND MOTOROLA INCORPORATED USED IT TO DESIGN ITS CELLULAR PHONES MR. NERAY ADDED ALTHOUGH ALIAS STOCK DECLINED LAST WEEK ALONG WITH THE TECHNOLOGY SECTOR ANALYSTS REITERATED THEIR BELIEF IN THE COMPANY'S FUNDAMENTALS THEIR TARGET PRICE FOR THE STOCK OVER THE NEXT SIX TO TWELVE MONTHS IS TWENTY FIVE FOR ITS SECOND QUARTER ENDED JULY THIRTY FIRST ALIAS SURPRISED WALL STREET BY REPORTING NET INCOME OF TWO MILLION DOLLARS OR EIGHTEEN CENTS A SHARE ON REVENUE OF THIRTEEN point ONE MILLION DOLLARS ALL FIGURES ARE IN U. S. DOLLARS ANALYSTS' ESTIMATES HAD RANGED FROM TEN CENTS TO THIRTEEN CENTS A SHARE AND THE STOCK HAS TRADED AS HIGH AS TWENTY ONE AND SEVEN EIGHTHS IN THE PAST TWO WEEKS EARNINGS ESTIMATES FOR THE FISCAL YEAR ENDING JANUARY THIRTY FIRST NINETEEN NINETY FIVE NOW ARE IN THE SEVENTY FIVE CENTS A SHARE RANGE UP FROM A CONSENSUS OF SIXTY FIVE CENTS BEFORE THE SECOND QUARTER REPORT IN FISCAL NINETEEN NINETY FOUR THE COMPANY EARNED FOUR point TWO MILLION DOLLARS OR FORTY FIVE CENTS A SHARE BEFORE EARNINGS TOOK OFF ALIAS WASN'T PARTICULARLY CHEAP AT A PRICE slash EARNINGS RATIO OF THIRTY EIGHT BUT ANALYSTS POINT OUT THE STOCK IS BECOMING A BETTER VALUE THEY ARE ESTIMATING AN AVERAGE P. slash E. RATIO OF TWENTY THREE FOR THE CURRENT FISCAL YEAR FROM THE CONSUMER VIEWPOINT ALIAS'S MOVIE AND VIDEO GAME SOFTWARE IS MOST VISIBLE WITH DIGITAL MEDIA EFFECTS CONTRIBUTING TO SUCH HIT FILMS AS THE MASK quote THE FLINTSTONES AND TRUE LIES quote THIS HAS BEEN ALIAS'S YEAR TO SHINE SAID PAUL KEDROSKY AT B. B. N. JAMES CAPEL IN TORONTO BESIDES THOSE FILMS THE COMPANY'S POWERANIMATOR PROGRAM HELPED CREATE THE LIQUID SILVER VILLAIN IN TERMINATOR TWO THE DINOSAURS IN JURASSIC PARK quote AND THE AWESOME PHYSICAL CHANGES GOLDIE HAWN AND MERYL STREEP ENDURED IN DEATH BECOMES HER THE RUSSELL TWO THOUSAND INDEX OF SMALL COMPANY STOCKS ROSE ONE point NINE FOUR OR ZERO point SEVEN SIX percent TO TWO HUNDRED FIFTY SIX point ONE TWO ITS HIGH FOR THE DAY THE NASDAQ COMPOSITE INDEX GAINED FOUR point NINE FIVE OR ZERO point SIX FIVE percent TO SEVEN HUNDRED SIXTY FOUR point TWO NINE THE DOW JONES INDUSTRIAL AVERAGE MEANWHILE SLIPPED ELEVEN point FOUR FOUR OR ZERO point THREE ZERO percent TO THREE THOUSAND EIGHT HUNDRED FORTY THREE point ONE NINE AFTER COMPUTER SELL PROGRAMS KICKED IN LATE IN THE DAY ADVANCING NASDAQ ISSUES OUTDID DECLINING ISSUES ONE THOUSAND NINE HUNDRED SEVENTY FOUR TO ONE THOUSAND TWO HUNDRED FIFTY SIX ON NASDAQ TOTAL VOLUME OF THREE HUNDRED EIGHT MILLION ONE HUNDRED FIVE THOUSAND SHARES COMPARED WITH TWO HUNDRED EIGHTY FOUR MILLION TWO HUNDRED SIXTY ONE THOUSAND ON THURSDAY CREATIVE BIOMOLECULES RALLIED THREE EIGHTHS OR THIRTEEN percent TO THREE AND THREE EIGHTHS THE COMPANY SAID IT SIGNED A THREE YEAR CONTRACT WITH BIOGEN INCORPORATED VALUED AT AS MUCH AS EIGHTEEN MILLION DOLLARS TO MAKE EXPERIMENTAL DRUGS FOR BIOGEN BIOGEN WILL PRODUCE FOR CLINICAL TRIALS SEVERAL OF THE COMPANY'S PROTEIN BASED THERAPEUTIC CANDIDATES CREATIVE BIOMOLECULES HAD NINETEEN NINETY THREE SALES OF TWO point SEVEN MILLION DOLLARS NASDAQ LISTED BIOGEN FINISHED THE DAY UP THREE QUARTERS AT FIFTY FOUR AND ONE HALF SHARES OF ALLEGHENY and WESTERN ENERGY JUMPED ONE AND SEVEN EIGHTHS OR TWENTY ONE percent TO TEN AND FIVE EIGHTHS THE COMPANY SAID IT AGREED IN PRINCIPLE TO MERGE WITH AN UNIDENTIFIED ACQUIRER FOR TWELVE DOLLARS A SHARE ON THE LOSING END OF NASDAQ TRADING APPLIANCE RECYCLING SHED TWO AND THREE QUARTERS OR THIRTY TWO percent TO FIVE AND THREE QUARTERS THE COMPANY SAID SOUTHERN CALIFORNIA EDISON COMPANY A UNIT OF S. C. E. CORPORATION. FILED A REQUEST WITH THE STATE TO CLASSIFY CERTAIN DEMAND SIDE ENERGY CONSERVATION MANAGEMENT ACTIVITIES AS EXPENSE PROGRAMS AND A NOTICE OF INTENT TO SUSPEND SHARED SAVINGS EXPENDITURES THOSE INCLUDE A REFRIGERATOR RECYCLING PROGRAM MANAGED BY APPLIANCE RECYCLING SHARES OF TELEDATA COMMUNICATION SLIPPED ONE TO SEVEN AND ONE HALF AFTER OPPENHEIMER and COMPANY LOWERED ITS RATING ON THE SHARES TO quote MARKET PERFORMER FROM BUY THOMAS GRANAHAN CONTRIBUTED TO THIS COLUMN INDEPENDENCE MAY BE PRIZED ON THE FRONTIER BUT IT HASN'T MEANT A WOODEN NICKEL TO MOST WESTERN STATES WHOSE FORTUNES HAVE IN THE PAST BEEN TIED TIGHTLY TO THE CALIFORNIA ECONOMY NOW TO THE SURPRISE OF MANY FORECASTERS CALIFORNIA'S NEIGHBORS HAVE NOT ONLY AVOIDED THE PACIFIC COAST GOLIATH'S LINGERING RECESSION THEY ALSO HAVE POSTED SOME OF THE NATION'S SHARPEST JOB GAINS IN THE CURRENT UPSWING SIX WESTERN STATES LED BY NEVADA UTAH AND IDAHO ARE AMONG THE TEN FASTEST GROWING LABOR MARKETS CALIFORNIA BY CONTRAST RANKS FORTY NINTH ON THE NATIONAL SCALE INDEED CALIFORNIA'S NEIGHBORS HAVE CLEARLY UNCOUPLED THEMSELVES FROM THE GOLDEN STATE DURING THE PAST YEAR OR SO IN WHAT MAY PROVE A LONG TERM SHIFT IN THE REGIONAL BALANCE SO SWIFT HAS THIS CHANGE BEEN THAT JUST TWO YEARS AGO THE SAN FRANCISCO FEDERAL RESERVE BANK PUBLISHED AN ELABORATE STUDY UNDERSCORING THE CLOSE ECONOMIC TIES BETWEEN THE GOLDEN STATE AND SOME OF ITS NEIGHBORS YOU MIGHT AS WELL CHUCK THAT OUT AND START OVER WITH A CLEAN SHEET OF PAPER quote ONE FED ECONOMIST ADVISES A PARTING OF THE WAYS IS IMPLIED BY RECENT EXPANSION IN ARIZONA AND NEVADA WHERE UNEMPLOYMENT RATES ARE RUNNING SIX point FOUR percent AND SIX point ONE percent VERSUS CALIFORNIA'S EIGHT point NINE percent WIDENING WHAT TRADITIONALLY HAS BEEN A FAR SMALLER GAP PERSONAL INCOME AN IMPORTANT ECONOMIC GAUGE IS EXPECTED TO GROW EIGHT point ONE percent IN ARIZONA THIS YEAR EIGHT point FIVE percent IN NEVADA AND ONLY THREE point EIGHT percent IN CALIFORNIA ACCORDING TO CONSENSUS FORECASTS TALLIED BY THE ECONOMIC OUTLOOK CENTER AT ARIZONA STATE UNIVERSITY INDUSTRY IN THE PAST HAS DEVELOPED ON THE POPULOUS PACIFIC COAST WHERE BUSINESSES HAVE FED ON RAW MATERIALS FROM A RELATIVELY SPARSELY SETTLED INTERIOR BUT MANUFACTURING IS NO LONGER THE SPECIAL STRENGTH OF CALIFORNIA IN THE PAST YEAR THE IMMEDIATE NEIGHBORING STATES OF ARIZONA NEVADA AND OREGON AS WELL AS NEARBY UTAH AND IDAHO GAINED A TOTAL OF ALMOST TWENTY FOUR THOUSAND MANUFACTURING JOBS CALIFORNIA LOST FIFTY EIGHT THOUSAND SUCH JOBS IN THE SAME PERIOD A CLEAR INDICATION OF REGIONAL CHANGE THE WEST OUTSIDE CALIFORNIA HAS BUILT A VERY ATTRACTIVE ECONOMY MOVING AWAY FROM NATURAL RESOURCES TO A CRITICAL MASS OF INDUSTRY NOTES DAVID HENSLEY AN ECONOMIST AT SALOMON BROTHERS INCORPORATED SUCH CHANGES HAVE BEEN WIDELY ATTRIBUTED TO INDUSTRIAL FLIGHT FROM A CALIFORNIA THAT HAS SAID TO BE TOO EXPENSIVE AND OVERLY REGULATED SOME CALIFORNIA OPERATIONS HAVE MOVED OR EXPANDED ELSEWHERE BUT DEPARTURES FROM CALIFORNIA MAY BE ONLY A SHORT CHAPTER IN THE STORY TECHNICAL AND STRUCTURAL CHANGES THAT ENCOURAGE DEVELOPMENT INLAND ARE PLAYING A MORE IMPORTANT LONGTERM ROLE ANALYSTS SAY NEW EFFICIENT FACTORIES PRODUCING HIGH TECHNOLOGY PRODUCTS ARE A KEY TO INLAND INDUSTRIAL GROWTH COMPUTER AND ELECTRONIC EQUIPMENT ARE VALUABLE PRODUCTS EASILY SHIPPED FROM REMOTE LOCATIONS MICRON TECHNOLOGIES INCORPORATED OF BOISE IDAHO NOTES THAT AN ENTIRE MONTH OF PRODUCTION OF ITS TINY ELECTRONIC CHIPS CAN BE CONTAINED IN THREE TRUCKLOADS AND SHIPPED ANYWHERE CHEAPLY FOR BULKIER GOODS TRUCKING COSTS HAVE FALLEN WITH DEREGULATION AND AIR TRANSPORT ALLOWS RUNWAYS FAR FROM THE SEA TO COMPETE WITH PACIFIC COAST PORTS FOR OVERSEAS BUSINESS WITH COASTAL ADVANTAGES DIMINISHING INTERNATIONAL TRADE IS MOVING MORE INLAND NOTES ALISON LYNN REASER THE CHIEF ECONOMIST AT FIRST INTERSTATE BANCORP CHEAP LAND RELATIVELY PRO BUSINESS POLICIES LOWER LIVING COSTS AND OF LATE EXPANDING POPULATIONS ADD TO THE FERTILE MIX IN THE INLAND STATES quote ROOM TO GROW AND LIFESTYLE HAVE BECOME IMPORTANT FORCES IN WESTERN STATES' EXPANSION OFFERING A SIMULTANEOUS BOOST IN THE WORK FORCE AND A GROWING NEED FOR GOODS AND SERVICES FAST GROWING IDAHO FOR EXAMPLE HAS ONLY THIRTEEN PEOPLE PER SQUARE MILE AND UTAH ONLY TWENTY TWO COMPARED WITH AN AVERAGE OF TWO HUNDRED PER SQUARE MILE IN CALIFORNIA OVER THE PAST FIVE YEARS TRADITIONAL MIGRATION TO CALIFORNIA FROM THE REST OF THE COUNTRY WHICH PEAKED AT ABOUT TWO HUNDRED FORTY THOUSAND PEOPLE ANNUALLY FIVE YEARS AGO HAS SWUNG TO AN OUTFLOW NOW ABOUT ONE HUNDRED NINETY THOUSAND PEOPLE A YEAR LEAVE CALIFORNIA FOR NEARBY STATES MR. HENSLEY ESTIMATES BUT HE FORECASTS THAT THAT OUTFLOW WILL DIMINISH SOMEWHAT AS CALIFORNIA'S ECONOMY IMPROVES AND OTHER WESTERN STATES SEE SOMEWHAT SLOWER GROWTH IN COMING YEARS AS CALIFORNIANS HAVE FOUND IN MIGRATION CAN BE A MIXED BLESSING SWIFT EXPANSION IN THE NINETEEN EIGHTIES PROMPTED THE STATE TO PURSUE THE VERY ENVIRONMENTAL AND PLANNING LAWS FOR WHICH IT NOW IS OFTEN CRITICIZED NEIGHBORING AREAS IN TIME MAY FIND THEIR GROWTH CONSTRAINED IN MUCH THE SAME WAY INTEREST RATES WILL TELL THE TALE FOR THE STOCK MARKET IN THE CLOSING QUARTER OF NINETEEN NINETY FOUR THE NEAR CERTAINTY OF ANOTHER FEDERAL RESERVE INTEREST RATE INCREASE BY YEAR END AND THE LIKELIHOOD THAT ECONOMIC DATA WILL CONTAIN MORE SCARY HINTS OF INFLATION ARE CONVINCING MANY ANALYSTS THAT A STOCK DOWNTURN IS JUST WAITING TO HAPPEN IN THE FOURTH QUARTER BUT THAT PESSIMISM MARKED THE BEGINNING OF THE THIRD QUARTER AND LOOK WHAT HAPPENED STOCK PRICES ROSE DESPITE ALL THE GLOOM AND DOOM THE DOW JONES INDUSTRIAL AVERAGE GAINED AN IMPRESSIVE TWO HUNDRED EIGHTEEN point TWO THREE POINTS OR ABOUT SIX percent IN THE THIRD QUARTER AND HAS GAINED EIGHTY NINE point ONE OH POINTS FOR THE YEAR OF COURSE THE INDUSTRIAL AVERAGE STILL REMAINS WELL SHORT OF ITS ALL TIME HIGH OF THREE THOUSAND NINE HUNDRED SEVENTY EIGHT point THREE SIX SET JANUARY THIRTY FIRST IN THE THIRD QUARTER GAINS IN HEALTH CARE STOCKS AND COMMODITIES ISSUES SUCH AS ALUMINUM AND PAPER HELPED PUSH THE MARKET HIGHER THE STRENGTH IN COMMODITIES ESPECIALLY THE CHEMICAL SECTOR HAS BEEN SUSTAINED NOW OVER TWO QUARTERS ADDING TO THE POSITIVE BREW TAKEOVERS AND MERGERS CONTINUED APACE PUSHING TARGET ISSUES HIGHER AND HELPING TO DRIVE THE TURNAROUND IN PHARMACEUTICAL ISSUES BUT SEVERAL STRATEGISTS SEE THE TAKEOVER CRAZE EASING NEW HIGHS SEEMINGLY WITHIN EASY REACH A FEW WEEKS AGO NOW SEEM LESS LIKELY MOREOVER DESPITE EXPECTATIONS FOR ROBUST THIRD QUARTER EARNINGS FEARS OF AN OVERHEATING ECONOMY HIGHER INTEREST RATES AND THE POTENTIAL FOR HIGH INFLATION LEAVE MOST MONEY MANAGERS IN A GRIM MOOD THE ECONOMY SHOWS EVERY SIGN OF REMAINING STRONGER THAN EXPECTED AND INTEREST RATES SHOW EVERY SIGN OF NOT RELENTING quote SAYS EDWARD J. PETNER PRESIDENT OF LYNCH and MAYER A MONEY MANAGEMENT FIRM IN NEW YORK AND BEFORE THOSE TWO FACTORS CHANGE IT'S HARD TO IMAGINE STOCKS GOING VERY FAR STILL MR. PETNER BELIEVES MONEY CAN BE MADE IN THE LATE CYCLE SECTORS OF THE STOCK MARKET SUCH AS BASIC INDUSTRIES AND CAPITAL GOODS BOTH OF WHICH PERFORMED WELL IN THE THIRD QUARTER HE ALSO ANTICIPATES CONTINUED GROWTH IN THE REBOUNDING HEALTH CARE AND CONSUMER STAPLES GROUPS THE HEALTH CARE GROUP BEATEN DOWN IN THE PAST SEVERAL QUARTERS REBOUNDED STRONGLY AS THE CLINTON HEALTH CARE INITIATIVE STUMBLED TOWARD ITS EVENTUAL DEMISE MANY MONEY MANAGERS ANTICIPATE GROWTH IN THAT SECTOR CONTINUING NOW THAT THE GOVERNMENT HAS STEPPED BACK FROM A BOLD REFORM PACKAGE MR. PETNER PREFERS JOHNSON and JOHNSON MEDTRONIC AND PFIZER IN THE HEALTH CARE SECTOR AND GILLETTE DURACELL AND COCA COLA AMONG CONSUMER STAPLES ISSUES WE'RE BEGINNING TO SEE SOME EARLY LEADERSHIP FROM THESE GROWTH STOCKS SAYS MR. PETNER quote GROWTH ISSUES HAVE BEEN DOWN A LONG TIME AND INEVITABLY THE HIGHER INTEREST RATES AND SHRINKING GOVERNMENT SPENDING WILL COOL THE ECONOMY AND GROWTH STOCKS WILL REALLY TAKE OVER GRACE MESSNER HEAD OF EQUITY MANAGEMENT AT WILMINGTON TRUST IN WILMINGTON DELAWARE ALSO ANTICIPATES THAT HIGHER INTEREST RATES WILL BEGIN TO BITE IN THE FOURTH QUARTER HOLDING THE STOCK MARKET LARGELY IN CHECK HIGH LONG RATES REALLY HAVE THE EQUITY MARKET BOXED IN RIGHT NOW SAYS MS. MESSNER WE ARE LIKELY TO GET MORE GOOD EARNINGS THIS QUARTER BUT THAT IS BOUND TO DISSIPATE IN THE COMING QUARTERS SO ONE HAS TO BE MUCH MORE CAREFUL quote IN THE FINAL QUARTER OF NINETEEN NINETY FOUR MS. MESSNER LOOKS TO BIG BANKS AND THE INSURANCE SECTOR TO PROVIDE SOME SAFETY AND LEADERSHIP IN AN OTHERWISE NERVOUS MARKET WE PARTICULARLY LIKE THE MONEY CENTER BANKS SHE SAYS INVESTORS' MEMORIES ARE VERY LONG AND THEY WENT THROUGH A TOUGH TIME WITH THE MONEY CENTER BANKS IN THE LATE NINETEEN EIGHTIES AND EARLY NINETEEN NINETIES BUT THIS GROUP IS UNDERVALUED AND IN GOOD FINANCIAL SHAPE UNLIKE MOST MONEY MANAGERS ABBY J. COHEN MARKET STRATEGIST AT GOLDMAN SACHS and COMPANY IN NEW YORK IS DECIDEDLY BULLISH SHE ANTICIPATES THAT THE EARNINGS STRENGTH DISPLAYED THROUGHOUT THIS YEAR WILL CONTINUE THROUGH NINETEEN NINETY FIVE AND EVEN INTO NINETEEN NINETY SIX quote THOUGH THE MARKET CONTINUES TO SEARCH FOR EVIDENCE OF AN INFLATION PATTERN INFLATION NUMBERS CONTINUE TO BOUNCE AROUND FROM MONTH TO MONTH AND WAGE COSTS REMAIN IN CHECK MS. COHEN SAYS AND WHAT THE MARKET HAS TO COME TO GRIPS WITH IS THAT PROFIT RESULTS LOOK LIKE THEY'RE DEVELOPING WELL FOR THIS QUARTER AND THAT IS PART OF A DEVELOPING TREND MS. COHEN SEES THE MARKET INITIALLY NERVOUS IN THE FOURTH QUARTER WORRIED ABOUT INTEREST RATES AND INFLATION BUT AS THOSE FEARS SUBSIDE INVESTORS WILL EVENTUALLY ROTATE INTO STOCKS WITH GREATER CYCLICAL EXPOSURE SHE ESPECIALLY LIKES THE U. S. TECHNOLOGY COMPANIES WITH HEALTHY EUROPEAN AND JAPANESE MARKET BUSINESSES THAT COULD TAP INTO ACCELERATING ECONOMIES ABROAD MS. COHEN ALSO ARGUES THAT INVESTORS SHOULD TAKE A CLOSE LOOK AT ECONOMICALLY SENSITIVE ISSUES THAT HAVE BEEN BEATEN DOWN RECENTLY SUCH AS AUTOMOBILE STOCKS AND TRANSPORTATION ISSUES ANOTHER SOURCE OF TREASURE MAY BE THE GOLD STOCKS BUT NOT AS A HEDGE AGAINST INFLATION SHE BELIEVES IMPROVING WORLD WIDE ECONOMIES WILL BOOST DEMAND FOR JEWELRY AND INDUSTRIAL USE OF GOLD I THINK THAT WE'LL BREAK THROUGH TO NEW HIGHS TOWARD THE END OF THE YEAR quote MS. COHEN SAYS WE'RE GOING TO SEE INCREASING BENEFITS FROM THE EUROPEAN AND JAPANESE ECONOMIES AND THE PROFITABILITY PICTURE WILL CONTINUE TO IMPROVE FROM RISING DEMAND AND IMPROVED MARGINS THOUGH NOT FROM HIGHER PRICES BUT SCOTT BLACK PRESIDENT OF DELPHI MANAGEMENT IN BOSTON BELIEVES THAT HIGHER PRICES ARE LIKELY AND THAT THEY WILL UNLOCK THE DOOR TO STRONG GAINS IN CERTAIN SECTORS AN OUTSPOKEN FOE OF THE FEDERAL RESERVE'S BID TO RAISE RATES AND SLOW GROWTH MR. BLACK LIKES STEEL ISSUES SUCH AS L. T. V. AND WHEELING PITTSBURGH DEMAND IN THIS AREA CONTINUES TO BE STRONG AND THE FLAT ROLLED STEELMAKERS HAVE DECIDED TO RAISE PRICES AT THE BEGINNING OF NINETEEN NINETY FIVE MR. BLACK SAYS quote BUT IT WILL CONTINUE TO BE A STOCK PICKER'S MARKET SO COUNTING ON ENTIRE SECTORS COULD PROVE RISKY A LATE DAY WAVE OF SELL PROGRAMS APPARENTLY SPARKED BY THE EXPIRATION OF CERTAIN QUARTER END OPTIONS PUSHED THE DOW JONES INDUSTRIAL AVERAGE INTO NEGATIVE TERRITORY AFTER IT SPENT MOST OF THE SESSION ON THE UPSIDE MEANWHILE BROADER INDEXES MOSTLY HELD TO THE PLUS SIDE DESPITE SURRENDERING SOME OF THEIR GAINS EARLY GAINS STEMMED FROM FRIDAY MORNING'S BULLISH ECONOMIC NEWS ABOUT RISES IN PERSONAL INCOME AND CONSUMPTION THAT PUSHED THE BENCHMARK THIRTY YEAR BOND'S PRICE HIGHER AND ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION LOWER TO SEVEN point EIGHT ONE percent THE FINAL DOW JONES INDUSTRIAL AVERAGE CLOSE WAS THREE THOUSAND EIGHT HUNDRED FORTY THREE point ONE NINE DOWN ELEVEN point FOUR FOUR AMONG BROADER MEASURES THE STANDARD and POOR'S FIVE HUNDRED STOCK INDEX GAINED ZERO point FOUR FIVE TO FOUR HUNDRED SIXTY TWO point SIX NINE THE NASDAQ COMPOSITE INDEX SOARED FOUR point NINE FIVE TO SEVEN HUNDRED SIXTY FOUR point TWO NINE AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED ZERO point THREE SEVEN TO TWO HUNDRED FIFTY FIVE point FIVE TWO ON THE NEW YORK STOCK EXCHANGE THERE WERE ONE THOUSAND THREE HUNDRED THREE ISSUES ADVANCING EIGHT HUNDRED FIFTY DECLINING AND SEVEN HUNDRED FOURTEEN UNCHANGED BIG BOARD VOLUME TOTALED TWO HUNDRED NINETY ONE point NINE MILLION SHARES AND THE AVERAGE PRICE PER SHARE ROSE FIVE CENTS FOR THE WEEK THE DOW INDUSTRIALS GAINED ELEVEN point FOUR FOUR THE S. and P. FIVE HUNDRED WAS UP THREE point OH FOUR AND THE NASDAQ COMPOSITE INDEX ROSE SIX point NINE SIX U. S. AIR GROUP REBOUNDED FROM THURSDAY'S TWENTY percent DROP WITH A GAIN OF FIVE EIGHTHS OR SIXTEEN percent CLOSING THE SESSION AT FOUR AND FIVE EIGHTHS THE FINANCIALLY STRAPPED AIRLINE THURSDAY INDEFINITELY DEFERRED DIVIDEND PAYMENTS ON ALL OF ITS PREFERRED SHARES IN A MOVE TO CONSERVE CASH AND PUT MORE PRESSURE ON ITS UNIONS TO ACCEPT CONTRACT CONCESSIONS VONS WAS UP ONE AND THREE QUARTERS OR ELEVEN percent TO EIGHTEEN AFTER J. P. MORGAN SECURITIES REMOVED THE ARCADIA CALIFORNIA SUPERMARKET CHAIN FROM ITS SELL LIST AND UPGRADED THE STOCK TO A LONG TERM BUY quote MORGAN SAID THAT DESPITE A CONTINUED DIFFICULT ECONOMIC ENVIRONMENT IN SOUTHERN CALIFORNIA MOST OF THE DAMAGE HAS BEEN DONE PREMARK INTERNATIONAL ROSE TWO AND THREE EIGHTHS OR SIX percent TO FORTY TWO AND ONE QUARTER AFTER THE DEERFIELD ILLINOIS PLASTICS COMPANY SAID ON THURSDAY THAT IT WAS COMFORTABLE WITH ANALYSTS' THIRD QUARTER EARNINGS ESTIMATES OF ABOUT FIFTY SEVEN CENTS A SHARE COMPARED WITH YEAR EARLIER EARNINGS OF FORTY NINE CENTS CHAIRMAN WARREN BATTS SAID PREMARK IS POISED TO MEET WALL STREET'S EXPECTATIONS OF THREE DOLLARS AND TWENTY CENTS A SHARE FOR NINETEEN NINETY FOUR WHICH WOULD BEAT LAST YEAR'S EARNINGS OF TWO DOLLARS AND FIFTY SEVEN CENTS RESTATED TO REFLECT A TWO FOR ONE STOCK SPLIT IN JULY MBNA ROSE ONE AND ONE QUARTER OR FIVE point SEVEN percent TO TWENTY THREE AND ONE EIGHTH AFTER BEAR STEARNS RAISED ITS RATING ON THE NEWARK DELAWARE BANK HOLDING COMPANY TO STRONG BUY FROM BUY BEAR STEARNS SAID THE NATIONWIDE ISSUER AND SERVICER OF BANK CREDIT CARDS HAS ENJOYED quote INCREDIBLE SUCCESS IN MARKETING TO NEW CUSTOMERS AND WILL HAVE SIGNED UP MORE THAN FOUR MILLION CREDIT CARD CUSTOMERS BY THE END OF THE YEAR COMPARED WITH TWO point SIX MILLION NEW CUSTOMERS SIGNED LAST YEAR ALUMAX GAINED ONE AND THREE EIGHTHS OR FOUR point FIVE percent TO THIRTY TWO AND ONE EIGHTH AFTER THE NORCROSS GEORGIA COMPANY INDEFINITELY POSTPONED AN EIGHT MILLION SHARE OFFERING CITING MARKET CONDITIONS STRIDE RITE FELL ONE AND ONE EIGHTH OR SEVEN point FOUR percent TO FOURTEEN AFTER IT REPORTED THIRD QUARTER EARNINGS OF SEVENTEEN CENTS A SHARE COMPARED WITH THIRTY SIX CENTS A YEAR EARLIER AND ANALYSTS' PROJECTION OF TWENTY CENTS THE CAMBRIDGE MASSACHUSETTS SHOE COMPANY SAID ITS RESULTS CONTINUE TO BE HURT BY OPERATIONAL PROBLEMS FROM THE START UP OF KEDS'S NEW DISTRIBUTION CENTER COMMERCIAL NET LEASE REALTY WAS DOWN FIVE EIGHTHS OR FOUR point NINE percent AT TWELVE AND ONE QUARTER AFTER AN OFFERING OF FOUR MILLION COMMON SHARES WAS PRICED AT TWELVE DOLLARS AND FIFTY CENTS EACH PROCEEDS FROM THE OFFERING ARE EXPECTED TO BE USED TO ACQUIRE PROPERTIES THE EUROPEAN COMMISSION SLAPPED PROVISIONAL DUMPING DUTIES OF AS MUCH AS THIRTY percent ON TELEVISIONS FROM FIVE ASIAN COUNTRIES SIGNALING A CRACKDOWN ON WHAT IT VIEWS AS UNFAIR PRICING THE DUTIES AFFECT T. V.S EXPORTED BY SOUTH KOREA MALAYSIA SINGAPORE THAILAND AND CHINA AND RANGE FROM THREE point ONE percent ON SETS MADE BY THOMSON S. A.'S SUBSIDIARY IN THAILAND TO TWENTY NINE point EIGHT percent ON THOSE PRODUCED BY ANOTHER THAI COMPANY TELETECH COMPANY THE SECOND HIGHEST DUTY TWENTY EIGHT point EIGHT percent WAS IMPOSED ON ALL SETS PRODUCED IN CHINA THE CASE STEMS FROM A COMPLAINT BROUGHT BY SIX EUROPEAN T. V. MAKERS INCLUDING PHILIPS ELECTRONICS N. V. AND THOMSON DUTIES WERE IMPOSED ON THE ASIAN SUBSIDIARIES OF BOTH PHILIPS AND THOMSON ILLUSTRATING THAT EUROPEAN COMPANIES ARE DETERMINED TO PRESS ANTIDUMPING CASES EVEN AT THE RISK OF HAVING THEIR OWN UNITS PENALIZED THE TWO LOWEST DUTIES WERE ON THE THOMSON AND PHILIPS SUBSIDIARIES THE COMMISSION SAID IT FOUND PRICE UNDERCUTTING OF AS MUCH AS FIFTY FOUR percent IT SAID THE FIVE COUNTRIES' MARKET SHARE INCREASED FROM NINE point NINE percent IN NINETEEN EIGHTY NINE TO TWENTY percent IN NINETEEN NINETY ONE TO NINETY TWO WHILE THE SHARE OF E. U. PRODUCERS DECLINED FROM THIRTY SIX percent TO TWENTY EIGHT percent IN THE SAME PERIOD THE BURMESE GOVERNMENT PLANS TO GRADUALLY PRIVATIZE STATE OWNED ECONOMIC ENTERPRISES GENERAL THAN SHWE CHAIRMAN OF THE RULING MILITARY JUNTA WAS REPORTED AS SAYING IN THE OFFICIAL NEW LIGHT OF MYANMAR DAILY ALL MAJOR BUSINESS ENTERPRISES AND INDUSTRIES WERE UNDER STATE MONOPOLY DURING THE PREVIOUS TWENTY SIX YEAR SOCIALIST RULE THE STATE LAW AND ORDER RESTORATION COUNCIL WHICH SEIZED POWER IN NINETEEN EIGHTY EIGHT HAS BEEN INTRODUCING A MARKET ORIENTED ECONOMIC SYSTEM SOME GOVERNMENT FACTORIES ARE RENTED TO PRIVATE ENTREPRENEURS AND OTHERS HAVE BEEN OPERATING JOINTLY WITH LOCAL AND FOREIGN PRIVATE BUSINESSES HONG KONG ALLOWED FOREIGN BANKS TO ESTABLISH MORE THAN A SINGLE SITE FOR REGIONAL AND BACK OFFICES THE ONE BUILDING CONDITION WAS INTRODUCED IN NINETEEN SEVENTY EIGHT IN AN EFFORT TO CURTAIL FOREIGN COMPETITION IN THE RETAIL BANKING MARKET HOWEVER A GOVERNMENT GUIDELINE SPECIFIES THAT THE ADDITIONAL OFFICES AREN'T ALLOWED TO ENGAGE IN BANKING BUSINESS REGIONAL OFFICES MAY CARRY OUT STRATEGIC PLANNING WHILE BACK OFFICES MAY CONDUCT INTERNAL ADMINISTRATIVE FUNCTIONS A GROUP OF FOREIGN AND INDIAN NONGOVERNMENT ORGANIZATIONS CALLED ON THE WORLD BANK TO HALT FUNDING OF COAL FIRED POWER EXPANSION IN THE SINGRAULI REGION OF INDIA GREENPEACE THE ENVIRONMENTAL DEFENSE FUND THE BERNE DECLARATION URGEWALD AND THE INDIAN GROUP NARMADA BACHAO ANDOLAN SAID THE PROJECT WOULD DISPLACE FIFTY ONE THOUSAND IMPOVERISHED PEOPLE AND ADD ONE HUNDRED MILLION TONS OF CARBON DIOXIDE EMISSIONS TO THE ATMOSPHERE THE ORGANIZATIONS SAID THE WORLD BANK IN JUNE NINETEEN NINETY THREE APPROVED A FOUR HUNDRED MILLION DOLLAR LOAN TO FUND THE FIRST STAGE OF THE TEN YEAR EXPANSION PROGRAM WHICH WILL INCREASE CAPACITY BY THREE THOUSAND SEVEN HUNDRED FIFTY MEGAWATTS A WOULD BE BANK ROBBER IN BUENOS AIRES WAS KEPT WAITING SO LONG BY BANK STAFF THAT HE GAVE UP AND LEFT EMPTYHANDED THE ARGENTINE NEWSPAPER CLARIN SAID THE ROBBER THREATENED A TELLER WITH A BOMB BUT SHE TOLD HIM SHE DIDN'T HAVE THE AUTHORITY TO HAND OVER MONEY AND WOULD HAVE TO ASK HER BOSS WHO IN TURN HAD TO CONSULT THE BRANCH MANAGER THE ROBBER FLED AFTER WAITING FIVE MINUTES FOR AN ANSWER THE POINT IS YOU GET IN REAL TROUBLE IF YOU DON'T HAVE THE PROPER DOCUMENTS SIGNED BY THE RIGHT PEOPLE quote ONE BANK WORKER EXPLAINED INDIA ALREADY GRAPPLING WITH THE MEDICAL TOLL OF THE PLAGUE OUTBREAK WORRIES THAT ITS FREE MARKET REFORMS WILL BE SET BACK BY THE SUDDEN RESTRICTIONS IT'S FACING FROM NERVOUS TRADING PARTNERS AS THE PLAGUE SPREAD FROM THE WESTERN PORT CITY OF SURAT TO THE EASTERN PORT CITY OF CALCUTTA MANY COUNTRIES CLOSED THEIR DOORS TO AIR AND SEA TRAFFIC FROM INDIA MANY PERSIAN GULF NATIONS AMONG THE BIGGEST IMPORTERS OF INDIAN PRODUCE ARE TURNING BACK ALL SHIPS LOADED WITH ITS FRUIT VEGETABLES MEAT AND PROCESSED FOOD LAST WEEK INDIA LOST SIX HUNDRED FORTY FIVE THOUSAND DOLLARS IN EXPORTS TRADE OFFICIALS ESTIMATED THE PLAGUE OUTBREAK WHICH BEGAN SEPTEMBER TWENTIETH IN INDIA'S DIAMOND AND TEXTILE WEAVING HUB STRUCK AFTER INDIA'S ECONOMY PUT THE LAST CRISIS BEHIND IT NATIONWIDE HINDU MUSLIM RIOTS IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO NORWEGIAN VOTERS OPPOSE MEMBERSHIP IN THE EUROPEAN UNION BY A MARGIN OF FORTY THREE percent TO TWENTY SEVEN percent ACCORDING TO A POLL IN NORWEGIAN NEWSPAPER DAGBLADET NORWAY WILL HOLD A REFERENDUM ON E. U. MEMBERSHIP NOVEMBER TWENTY EIGHTH MORE THAN TWO HUNDRED DOGCATCHERS ARE FANNING OUT ACROSS TAIWAN'S CAPITAL TO REMOVE SOME OF THE TWENTY THOUSAND STRAY DOGS THAT ROAM TAIPEI'S STREETS THE CITY'S THREE MILLION RESIDENTS ARE ESTIMATED TO KEEP ANOTHER TWENTY THOUSAND DOGS AS PETS GARY BETTMAN RUNS A SPORT WITH AN ATTRACTIVE NEW T. V. CONTRACT NEW CORPORATE SPONSORS AND FOR NOW NO GAMES IN POSTPONING THE SCHEDULED START OF THE NATIONAL HOCKEY LEAGUE BY AT LEAST TWO WEEKS TO OCTOBER FIFTEENTH ITS NEW COMMISSIONER PUT HIMSELF ON THIN ICE HE MAY BE PASSING UP A UNIQUE CHANCE TO SHOWCASE THE N. H. L. AT A TIME WHEN BASEBALL IS CANCELED AND BASKETBALL IS DORMANT IN FAVOR OF A TOUGH STANCE ON LABOR RELATIONS THEY HAVE A HELL OF AN OPPORTUNITY BUT THEY'RE LIABLE TO BLOW IT SAYS JON MANDEL A GREY ADVERTISING INCORPORATED EXECUTIVE AND SPORTS MARKETING EXPERT HOCKEY HAS A CHANCE TO GROW TREMENDOUSLY BUT IF THEY DON'T SEIZE IT THEY MAY NOT SEE IT AGAIN FOR FIFTEEN OR TWENTY YEARS HOCKEY'S HIATUS COULD STRETCH FAR BEYOND OCTOBER FIFTEENTH IF OWNERS AND PLAYERS HAVEN'T REACHED OR NEARED A NEW LABOR CONTRACT BY THEN THEY'VE BEEN WITHOUT ONE FOR A YEAR AND MR. BETTMAN DOESN'T WANT TO START A NEW SEASON WITHOUT A NEW SYSTEM HE PROPOSES TO TAX HIGH PAYING TEAMS' PAYROLLS USING THE PROCEEDS TO AID POORER TEAMS HE'D ALSO LIKE TO CAP ROOKIES' PAY AND SCRAP SALARY ARBITRATION BUT THE TWO SIDES ARE SO FAR APART THEY CAN'T EVEN AGREE WHAT TO CALL MR. BETTMAN'S ACTION THE UNION TERMS IT A LOCKOUT THE COMMISSIONER A POSTPONEMENT THERE IS MUCH AGREEMENT OUTSIDE HOCKEY HOWEVER THAT GARY BETTMAN HAS A BEAR OF A JOB HE IS TRYING TO BRING THE N. H. L. BACK FROM DECADES OF DISMAL LEADERSHIP AND HE IS STRUGGLING TO RECONCILE THE ECONOMICS OF CLUBS IN FLUSH NEW YORK AND STRUGGLING EDMONTON HE IS TRYING TO CHECK SALARY INFLATION WHICH HAS SEEN AVERAGE PLAYER PAY TRIPLE TO MORE THAN FIVE HUNDRED THOUSAND DOLLARS THE PAST FOUR YEARS AND LEFT THE MAJORITY OF N. H. L. TEAMS IN THE RED AND HE'S ONLY BEEN ON THE JOB NINETEEN MONTHS DAVID STERN THE NATIONAL BASKETBALL ASSOCIATION'S COMMISSIONER AND MR. BETTMAN'S LONGTIME MENTOR THERE SAYS HIS PROTEGE IS EQUAL TO THE JOB quote HE'S INDOMITABLE OF SPIRIT LIKES PEOPLE BUILDS CONSENSUS AND IS TIRELESS HE SAYS HE TAKES IT ONE STEP BEYOND THE ENERGIZER NONETHELESS THE FORTY TWO YEAR OLD MR. BETTMAN HAS BEEN LESS A BUNNY THAN A LIGHTNING ROD IN THESE CONTENTIOUS NEGOTIATIONS PLAYERS HAVE DENOUNCED HIM AS AN OUTSIDER AND A NEW YORK LAWYER BOTH OF WHICH ARE TRUE LAST WEEK CHICAGO BLACKHAWKS DEFENSEMAN CHRIS CHELIOS SAID I'D BE WORRYING ABOUT MY FAMILY IF I WAS GARY BETTMAN quote HE LATER APOLOGIZED THE ATTACKS IRK COLLEAGUES AT THE N. H. L.'S EXPANDED HEADQUARTERS IN MANHATTAN WHICH ACCOMODATE NEW BLOOD IN MARKETING LICENSING AND OTHER KEY DEPARTMENTS HE WASN'T HIRED TO COACH A HOCKEY TEAM HE WAS HIRED TO RUN A SPORTS LEAGUE AND THAT'S WHAT COUNTS SAYS JEFF PASH N. H. L. GENERAL COUNSEL MR. BETTMAN CAN INDEED CLAIM A STRING OF SUCCESSES OVERSEEING THE N. H. L.'S SUCCESSFUL SUNBELT EXPANSION ATTRACTING NIKE INCORPORATED AND ANHEUSER BUSCH COMPANIES AS CORPORATE SPONSORS AND STRIKING A ONE HUNDRED FIFTY FIVE MILLION DOLLAR DEAL WITH THE FOX NETWORK WHICH WILL GIVE THE LEAGUE ITS FIRST REGULAR NETWORK EXPOSURE IN TWENTY YEARS ADMIRERS SAY MR. BETTMAN HAS THE MARKETING SAVVY OF THE N. B. A.'S MR. STERN ED DURSO EXECUTIVE VICE PRESIDENT OF E. S. P. N. WHO RECENTLY NEGOTIATED AN EXTENDED AND ENHANCED N. H. L. DEAL FOR THE CABLE NETWORK SAYS GARY'S PRINCIPAL OBJECTIVE WAS NOT NECESSARILY MONEY BUT TO POSITION THE LEAGUE FOR BETTER SHOWCASING IN THE U. S. HE'S REALISTIC FAIR AND CREATIVE BUT SOME FEEL MR. BETTMAN WHILE A FINE COMPLEMENT TO MR. STERN HAS DEFICIENCIES AS A SOLO ACT MR. BETTMAN WAS THE COMMISSIONER'S HAMMER IN THE N. B. A. ENFORCING AND INTERPRETING SALARY CAP REGULATIONS TAKING A TOUGH LINE ON EVERY NITTY GRITTY POINT OF A CONTRACT AFTER MR. STERN HAD SET THE SWEEPING OUTLINES BUT IN THE N. H. L. WHERE HE IS SUPPOSED TO PLAY THE MAGISTERIAL ROLE MR. BETTMAN COMES ACROSS AS BEING STEELY AS A SKATE HE INFURIATED PLAYERS IN AUGUST BY RESCINDING A HOST OF BENEFITS RIGHT DOWN TO MEAL MONEY CERTAINLY HIS TACTICS HAVE SPAWNED A SENSE IN PLAYERS THAT MR. BETTMAN NOT ONLY DOESN'T KNOW THEM PERSONALLY HE DOESN'T KNOW THEIR HISTORY AND NATURE THEY HAVE BEEN MAJOR LEAGUE SPORTS' LOWEST PAID ATHLETES EVEN NOW AVERAGING LESS THAN HALF THE AVERAGE SALARY OF BASEBALL PLAYERS ONE point TWO MILLION DOLLARS AND BASKETBALL PLAYERS ONE point FOUR MILLION DOLLARS THEIR UNION SIGNED A SUCCESSION OF SWEETHEART CONTRACTS UNTIL ROBERT GOODENOW WAS NAMED UNION CHIEF NEARLY FOUR YEARS AGO HAVING FINALLY SEEN A SALARY RUNUP AND ENJOYED AGGRESSIVE LABOR LEADERSHIP THEY WON'T ROLL OVER AT THE OWNERS' CRIES OF POVERTY OR THE DOOMSDAY DEADLINES OF MR. BETTMAN quote HOCKEY PLAYERS ARE QUIET BUT THEY'RE TOUGH AND GARY'S PUSHING THEM INTO THE BOARDS SAYS ONE UNION OPERATIVE I BELIEVE HE'S GROSSLY MISCALCULATED THEIR RESOLVE MR. BETTMAN MAINTAINS HE NEVER RESCINDED BENEFITS OR SHUT DOWN HOCKEY TO PROVE HIS METTLE RATHER HE SAYS HE HAS TRIED TO SPEED UP BOGGED DOWN NEGOTIATIONS HE ALSO ACKNOWLEDGES HE WAS MR. STERN'S DESIGNATED TOUGH GUY BUT DENIES IT'S THE ONLY ROLE THAT FITS OR SUITS HIM DEPENDING ON THE POSITION YOU'RE IN YOU HAVE TO PLAY A VARIETY OF ROLES quote HE SAYS YOU NEED A KINDER GENTLER SIDE AS COMMISSIONER BUT THAT DOESN'T NECESSARILY MEAN YOU MAKE POPULAR DECISIONS INDEED FRIENDS SAY THE REAL GARY BETTMAN IS HARDLY THE BETE NOIR PORTRAYED BY THE PLAYERS UNION HE'S THE DOWN TO EARTH GUY NEXT DOOR WHO HAS A GREAT SENSE OF HUMOR AND A GREAT FAMILY SAYS STAN KASTEN PRESIDENT OF THE N. B. A.'S ATLANTA HAWKS quote BUT UNDERSTAND DAVID STERN HAD DECADES TO GET COMFORTABLE WITH PLAYERS MEDIA AND FANS AND HE COULD LOOK MORE CASUAL ABOUT WHAT HE WAS DOING GARY HAD TO WALK RIGHT INTO IT MR. BETTMAN HAS THE ENTHUSIASTIC SUPPORT OF HIS OWNERS WHO DESCENDED ON NEW YORK EN MASSE FRIDAY TO SUPPORT THEIR EMBATTLED COMMISSIONER HE'S CARRIED OUT THIS PROCESS WITH MORE INTELLIGENCE AND INSIGHT THAN ANYBODY WE'VE EVER HAD IN THAT POSITION SAYS BOSTON BRUINS OWNER JEREMY JACOBS HE HAS US TOTALLY UNIFIED WHICH IS SOMETHING IN ITSELF quote MR. BETTMAN FEELS HE'S HARDLY RISKING HOCKEY'S RISING POPULARITY BY CANCELING THE EARLY GAMES THE FACT IS THIS SPORT HAS ECONOMIC PROBLEMS HE SAID IF YOU'RE JUST DELAYING AND EXACERBATING THEM YOU AREN'T ACCOMPLISHING ANYTHING AND ANY POPULARITY GAINS WOULD BE ILLUSORY YOU CAN'T BUILD A HOUSE WITHOUT A SOLID FOUNDATION BRAZILIANS HEAD TO THE POLLS TODAY TO SELECT A NEW PRESIDENT WITH FINAL ELECTORAL SURVEYS POINTING TO A GROWING LIKELIHOOD THAT CENTRIST FERNANDO HENRIQUE CARDOSO WILL CAPTURE THE MAJORITY OF THE VOTE NEEDED FOR A FIRST BALLOT VICTORY A POLL BY THE VOX POPULI AGENCY RELEASED OVER THE WEEKEND SHOWED THAT MR. CARDOSO HAD SURPASSED THE SUM OF HIS CHALLENGERS' VOTES BY EIGHT PERCENTAGE POINTS THE POLL INDICATED THAT SUPPORT FOR MR. CARDOSO WHO HAS PROMISED TO INTRODUCE SWEEPING FREE MARKET REFORMS HAD EDGED TOWARD A NEW PEAK OF FORTY SIX percent HIS NEAREST RIVAL THE LEFTIST LUIS INACIO LULA DA SILVA RECEIVED SUPPORT OF TWENTY THREE percent IN THE POLL IF HE FALLS SHORT OF THE VOTE TOTAL NEEDED TO WIN ON THE FIRST ROUND MR. CARDOSO WOULD FACE A RUNOFF IN NOVEMBER AGAINST THE SECOND PLACE FINISHER WHO WOULD ALMOST CERTAINLY BE MR. DA SILVA BUT THE CARDOSO CAMP IS EAGER FOR A FIRST ROUND WIN IN ORDER TO GET A HEAD START ON THE FORMIDABLE LEGISLATIVE REFORM AGENDA THAT LIES BEFORE IT AIMING TO KEEP HIS POPULIST BID FOR THE PRESIDENCY ALIVE MR. DA SILVA UNLEASHED AN ELEVENTH HOUR CAMPAIGN BLITZ IN THE CAPITAL OF BRASILIA MR. DA SILVA HEADED A CAR CARAVAN THAT STRETCHED FOR MILES AND AT AN EMOTIONAL CLOSING TO HIS CAMPAIGN IN THE PORT OF RECIFE HE EXHORTED SEVENTY THOUSAND LOYALISTS TO CARRY ON THE STRUGGLE BUT WHILE HE WAS STRIVING TO SEND THE ELECTION INTO A SECOND ROUND MR. DA SILVA ALSO BEGAN TO ADOPT A MORE CONCILIATORY TONE TOWARD MR. CARDOSO EVIDENTLY IN RECOGNITION OF THE STRONG LIKELIHOOD OF A CENTRIST TRIUMPH MR. DA SILVA PROMISED quote A POLICY OF CONVERSATION WITH MR. CARDOSO THAT WAS A MARKED DEPARTURE FROM HIS EARLIER POSTURE OF QUESTIONING THE LEGITIMACY OF THE ELECTORAL PROCESS DUE TO THE INDIRECT SUPPORT MR. CARDOSO HAS ALLEGEDLY RECEIVED FROM THE MEDIA AND FROM SOME SECTORS OF THE GOVERNMENT MR. DA SILVA ALSO SPOKE MORE FAVORABLY THAN IN THE PAST ABOUT THE REAL PLAN THE SUCCESSFUL ANTI INFLATION PROGRAM THAT CATAPULTED MR. CARDOSO THE FORMER FINANCE MINISTER INTO THE LEAD INDEPENDENTLY OF WHO WINS WE HAVE TO MAKE AN EFFORT SO THAT INFLATION DOESN'T RETURN HE SAID MR. CARDOSO WHO HEADS A DIVERSE COALITION OF CENTRIST PARTIES QUICKLY SEIZED THE OLIVE BRANCH IF THERE ARE CIRCUMSTANCES THAT BRING US TOGETHER IN THE GOVERNMENT THAT'S FOR THE BETTER quote HE SAID ANALYSTS SAY THAT MR. CARDOSO WILL NEED ALL THE HELP HE CAN GET TO SHEPHERD HIS AMBITIOUS PROGRAM THROUGH THE FRACTIOUS BRAZILIAN CONGRESS WHILE THE REAL PLAN HAS REDUCED INFLATION IN SEPTEMBER TO A LITTLE OVER ONE percent A MONTH FROM FIFTY percent IN JUNE THE GOVERNMENT MUST PRESS STRUCTURAL CHANGES THAT BRAZIL HAS LAGGED BEHIND IN CARRYING OUT THESE INCLUDE PRIVATIZATION PENSION FUND REFORM AND A CHANGE IN THE WAY REVENUE IS DIVIDED BETWEEN THE FEDERAL AND STATE GOVERNMENTS BESIDES PICKING THE PRESIDENT BRAZILIANS WILL ALSO VOTE ON STATE GOVERNORS THE LOWER HOUSE OF CONGRESS AND MOST OF THE SENATE SOME PRELIMINARY RESULTS ARE EXPECTED TO BE RELEASED TOMORROW MORNING IT COULD TAKE SEVERAL DAYS FOR THE COMPLETE RESULTS TO BE TABULATED WHILE SEVERAL OPINION FIRMS WILL DO EXIT POLLS THEY WILL BE PROHIBITED FROM RELEASING THE RESULTS UNTIL THE CLOSE OF POLLS LATE TONIGHT M. C. I. COMMUNICATIONS CORPORATION IS EXPECTED AS EARLY AS THIS WEEK TO ASK ILLINOIS REGULATORS FOR PERMISSION TO OFFER LOCAL PHONE SERVICE IN COMPETITION WITH AMERITECH CORPORATION M. C. I. PLANS TO SEEK CERTIFICATION TO PROVIDE PHONE SERVICE IN CHICAGO AND ITS OUTLYING SUBURBS THE LARGEST TELECOMMUNICATIONS MARKET IN THE MIDWEST SAID PEOPLE WHO HAVE BEEN TOLD BY M. C. I. OFFICIALS OF THE COMPANY'S PLANS SUCH A CERTIFICATE WOULD FREE M. C. I. TO OFFER A RANGE OF LOCAL AND LONG DISTANCE SERVICES TO BUSINESSES AND CONSUMERS M. C. I. ON FRIDAY GOT THE CASH INFUSION TO BACK ITS BYPASS THREAT THE WASHINGTON BASED LONG DISTANCE CARRIER CLOSED ITS AGREEMENT WITH BRITISH TELECOMMUNICATIONS P. L. C. CLEARING THE WAY FOR B. T. TO PURCHASE TWENTY percent OF M. C. I. FOR FOUR point THREE BILLION DOLLARS IN CASH INVESTORS WERE HEARTENED THAT THE MUCH AWAITED PACT WAS COMPLETED AND PUSHED UP M. C. I. SHARES ON FRIDAY BY ONE DOLLAR AND TWENTY FIVE CENTS TO CLOSE AT TWENTY FIVE point THREE SEVEN FIVE DOLLARS IN HEAVY NASDAQ STOCK MARKET TRADING B. T.'S AMERICAN DEPOSITARY RECEIPTS CLOSED UNCHANGED AT FIFTY SEVEN DOLLARS AND TWENTY FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING M. C. I. WOULDN'T COMMENT ON THE PLAN TO BATTLE AMERITECH BUT A SPOKESMAN SAID SUCH A MOVE WOULD BE CONSISTENT WITH M. C. I.'S AIM TO BUILD LOCAL NETWORKS IN MAJOR AMERICAN MARKETS TO BYPASS EXPENSIVE FEES FROM THE REGIONAL BELL COMPANIES FOR CARRYING ITS LONG DISTANCE TRAFFIC LOCALLY THOSE SO CALLED ACCESS FEES NOW COST M. C. I. AS MUCH AS FORTY FIVE CENTS OF EVERY REVENUE DOLLAR SCOTT BONNEY AMERITECH'S VICE PRESIDENT OF REGULATORY AFFAIRS IN ILLINOIS SAID THE COMPANY EXPECTED M. C. I.'S ENTRANCE M. C. I. WHICH OWNS TELEGRAPH CABLE CONDUITS RUNNING UNDER CHICAGO TO SOME OF THE BIGGEST CORPORATE HIGH RISES WILL HAVE EASY ACCESS TO ILLINOIS BELL'S MOST LUCRATIVE CUSTOMERS FOR ITS PART AMERITECH BASED IN CHICAGO HAS ASKED THE JUSTICE DEPARTMENT FOR PERMISSION TO ENTER THE LONG DISTANCE BUSINESS ON A LIMITED BASIS IN ILLINOIS WITH AN EYE ON EXPANDING SERVICE THROUGHOUT ITS FIVE STATE MIDWEST TERRITORY M. C. I. AND OTHER LONG DISTANCE PLAYERS OPPOSE THAT PLAN PEOPLE FAMILIAR WITH THE MATTER SAY THE JUSTICE DEPARTMENT IS CONSIDERING ALLOWING AMERITECH TO OFFER LONG DISTANCE SERVICE IN CHICAGO ON A TRIAL BASIS A JUSTICE SPOKESMAN DECLINED TO COMMENT SUCH CLEARANCE WOULD COME AS A WELCOME RELIEF TO AMERITECH WHICH HAS BEEN FEELING THE HEAT OF COMPETITION IN CHICAGO A. T. and T. CORPORATION HAS BEEN ENCOURAGING CUSTOMERS TO USE SPECIAL DIALING CODES TO CIRCUMVENT THE BABY BELL WHEN MAKING CALLS INSIDE THE STATE AMERITECH PLANNERS RECKON THE COMPANY HAS LOST ABOUT ONE HUNDRED MILLION DOLLARS ON SUCH CALLS IN THE PAST YEAR MOST OF IT AS A DIRECT RESULT OF A. T. and T.'S CAMPAIGN INSIDERS SAID AMERITECH DECLINED TO COMMENT ON THAT NUMBER BUT JAMES FIRESTONE PRESIDENT OF CONSUMER SERVICES FOR AMERITECH SAID A. T. and T.'S CAMPAIGN CLEARLY IS HAVING A MEASURABLE IMPACT A. T. and T.'S ABILITY TO SPEND HUGE SUMS IT RECENTLY SPENT ELEVEN point FIVE BILLION DOLLARS TO PURCHASE WIRELESS GIANT MCCAW CELLULAR COMMUNICATIONS INCORPORATED HELPED DRIVE M. C. I. INTO B. T.'S ARMS AS PART OF ITS COMBINATION WITH THE U. K.'S LARGEST PHONE COMPANY M. C. I. ON FRIDAY SAID IT ALSO ADOPTED A STOCKHOLDERS RIGHTS PLAN APPARENTLY AIMED AT PROTECTING THE COMPANY FROM POTENTIAL UNWANTED TAKEOVER ATTEMPTS ALTHOUGH M. C. I. SAID IT DIDN'T KNOW OF ANY M. C. I. ISSUED ONE HUNDRED EIGHT point FIVE MILLION NEW SHARES OF ITS COMMON STOCK TO B. T. IN EXCHANGE FOR A THREE point FIVE BILLION DOLLAR PAYMENT LAST YEAR B. T. HAD ACQUIRED TWENTY SEVEN point FOUR MILLION M. C. I. SHARES FOR EIGHT HUNDRED THIRTY MILLION DOLLARS B. T. NOW OWNS ONE HUNDRED THIRTY FIVE point NINE MILLION SHARES OR TWENTY percent OF M. C. I.'S OUTSTANDING STOCK BLAKE BATH A SANFORD BERNSTEIN and COMPANY ANALYST SAID HE WAS SURPRISED M. C. I. DIDN'T SAY HOW IT PLANS TO USE THE FOUR point THREE BILLION DOLLAR INFUSION FROM B. T. SAYING quote WE'VE SEEN NOTHING BUT FITS AND STARTS FROM THEM AND AN UNDEFINED WIRELESS STRATEGY M. C. I.'S PLAN TO USE ONE point THREE SIX BILLION DOLLARS OF THE B. T. INFUSION TO ACQUIRE A SEVENTEEN percent STAKE IN MOBILE RADIO COMPANY NEXTEL COMMUNICATIONS INCORPORATED RECENTLY UNRAVELED DUE TO M. C. I.'S CONCERNS OVER NEXTEL'S TECHNOLOGY AND OTHER ISSUES DURING A CONFERENCE CALL WITH ANALYSTS FRIDAY BERT C. ROBERTS CHAIRMAN AND CHIEF EXECUTIVE OF M. C. I. CONCEDED THAT TO SOME DEGREE WE'VE BEEN DRAGGING OUR FEET BUT HE ADDED WE WANTED TO MAKE SURE WE WEREN'T GETTING OUT IN FRONT OF OUR HEADLIGHTS quote MR. ROBERTS SAID M. C. I. WAS IN TALKS WITH VARIOUS COMPANIES ABOUT A POSSIBLE WIRELESS COMMUNICATIONS ALLIANCE UNDER THE B. T. AGREEMENT M. C. I. ALSO COMPLETED ITS ACQUISITION OF A TWENTY FOUR point NINE percent STAKE IN CONCERT A JOINT VENTURE LAUNCHED IN THE SUMMER TO PROVIDE NETWORK SERVICES TO MULTINATIONAL CUSTOMERS MICHAEL HEPHER B. T.'S GROUP MANAGING DIRECTOR AND ALFRED MOCKETT MANAGING DIRECTOR FOR B. T. GLOBAL COMMUNICATIONS WERE NAMED AS DIRECTORS ON M. C. I.'S BOARD WITH A THIRD PERSON TO BE NAMED LATER THE NEW DIRECTORS WILL EXPAND M. C. I.'S BOARD TO FIFTEEN MEMBERS IN TURN MR. ROBERTS OF M. C. I. WILL JOIN B. T.'S BOARD IN THE RELATED RIGHTS OFFERING M. C. I. SAID IT ADOPTED A PLAN UNDER WHICH SHAREHOLDERS WOULD RECEIVE THE RIGHT TO PURCHASE ONE HUNDREDTH OF A SHARE OF M. C. I. SERIES E. JUNIOR PARTICIPATING PREFERRED STOCK AT AN EXERCISE PRICE OF ONE HUNDRED DOLLARS THE OFFERING KICKS IN IF ANY ENTITY ACQUIRES TEN percent OR MORE OF M. C. I. STOCK OR IF B. T. ACQUIRES MORE THAN TWENTY percent OF THE LONG DISTANCE COMPANY M. C. I. SHAREHOLDERS HAVE APPROVED THE RIGHTS OFFERING STATE FARM MUTUAL AUTOMOBILE INSURANCE ASSOCIATION RAISED ITS LOSS ESTIMATE FROM THE JANUARY CALIFORNIA EARTHQUAKE BY ONE THIRD TO NEARLY TWO BILLION DOLLARS THE LARGEST DAMAGE ESTIMATE OF ANY INSURER THE STATE FARM REVISION THE FIFTH INCREASED DAMAGE ESTIMATE ISSUED BY A MAJOR INSURER IN RECENT WEEKS SUGGESTS THAT THE TOTAL COST OF THE LOS ANGELES AREA EARTHQUAKE COULD BE BETWEEN TEN BILLION DOLLARS AND TWELVE BILLION DOLLARS SAID STEVEN GOLDSTEIN VICE PRESIDENT OF THE INSURANCE INFORMATION INSTITUTE IN MANY WAYS EARTHQUAKES ARE THE INSURANCE INDUSTRY'S TIME BOMB SAID MR. GOLDSTEIN OF THE TRADE GROUP REPRESENTING THE PROPERTY AND CASUALTY INDUSTRY quote HOMEOWNERS WHO THOUGHT THEY WERE SPARED DAMAGE ARE FINDING SIX MONTHS LATER THAT THEY ARE EXPERIENCING STRUCTURAL DAMAGE BY CONTRAST WITH A HURRICANE OR TORNADO WHAT YOU SEE IS WHAT YOU GET THE LATEST REVISIONS MAKE THE QUAKE THE SECOND COSTLIEST NATURAL DISASTER LAGGING BEHIND HURRICANE ANDREW WHICH DEVASTATED REGIONS OF SOUTH FLORIDA IN NINETEEN NINETY TWO AND GENERATED NEARLY SIXTEEN BILLION DOLLARS IN CLAIMS STATE FARM VICE PRESIDENT RON ARNOLD SAID THE VALUE OF THE CALIFORNIA EARTHQUAKE CLAIMS IS ESCALATING AS WE GET INTO THE HOMES TO MAKE THE REPAIRS HE SAID THE REVISED FIGURES WON'T HOWEVER HAVE A MEASURABLE EFFECT ON THE COMPANY'S FINANCIAL POSITION IT'S NOT A THREATENING SITUATION quote THE BLOOMINGTON ILLINOIS INSURER WHICH ANALYSTS DESCRIBE AS WELL CAPITALIZED CONTINUES TO EXPECT A TOTAL OF SOME ONE HUNDRED ELEVEN THOUSAND CLAIMS STEMMING FROM THE QUAKE MR. ARNOLD SAID STATE FARM HAD THE LEADING MARKET SHARE OF EARTHQUAKE INSURANCE IN CALIFORNIA ALLSTATE CORPORATION ANOTHER BIG INSURER HAD INCREASED ITS LOSS ESTIMATE LATE LAST WEEK BY THIRTY SEVEN percent TO ONE point THREE BILLION DOLLARS INSURANCE INDUSTRY OFFICIALS HAVE SAID THE EARTHQUAKE'S UNUSUAL AND VIOLENT UP AND DOWN MOVEMENTS WREAKED CONSIDERABLY MORE HAVOC WITH BUILDINGS THAN MORE CONVENTIONAL SIDE TO SIDE EARTHQUAKES ANALYSTS ALSO SAID THEY EXPECTED ANY INSURERS WHO HADN'T ALREADY REVISED ESTIMATES UPWARD IN RECENT WEEKS TO DO SO ON FRIDAY R. L. I. CORPORATION OF PEORIA ILLINOIS ANNOUNCED AN INCREASE IN NET CLAIM RESERVES FOR THE EARTHQUAKE OF TWELVE percent TO FOURTEEN MILLION DOLLARS WHILE HE DIDN'T HAVE ANY SPECIFIC COMPANIES IN MIND MR. GOLDSTEIN SAID THE BOOSTED LOSS FIGURES BRING INTO QUESTION WHETHER SOME COMPANIES MIGHT FACE INSOLVENCY ANOTHER FACTOR CAUSING MONTHS OF DELAYS IN CLAIMS AND THUS THE DELAYED REVISIONS UPWARD IS A TEN percent DEDUCTIBLE PROVISION IN MOST CALIFORNIA EARTHQUAKE INSURANCE SAID MR. GOLDSTEIN IT'S TAKING SOME PEOPLE TIME TO REACH THE TEN percent DEDUCTIBLE HE SAID THE WORST MAY BE OVER FOR THE MORTGAGE DERIVATIVE MARKET AFTER A SAVAGE PRICE DECLINE THERE ARE SIGNS OF A BOTTOM IN THE HIGH RISK MARKET FOR EXOTIC BONDS BACKED BY HOME MORTGAGES quote THERE'S NOT MUCH THAT CAN GO WRONG NOW SAYS GREG PARSEGHIAN A SALOMON BROTHERS BOND ANALYST HE IS CAUTIOUSLY OPTIMISTIC BECAUSE RISING INTEREST RATES ALREADY HAVE WREAKED SO MUCH HAVOC ON THIS MERCURIAL MARKET FREQUENTED BY INVESTORS BIG AND SMALL FROM BANKS AND INSURERS TO CERTAIN MUTUAL FUNDS THE MORTGAGE BACKED SECURITIES MARKET IS A REALM WHERE LOTS OF BONDS NOW SELL BELOW PAR THEIR FACE AMOUNT ESPECIALLY DISTRESSED ARE SEGMENTS OF THE MARKET FOR COLLATERALIZED MORTGAGE OBLIGATIONS C. M. O.S ARE BONDS CARVED FROM POOLS OF HOME MORTGAGES INTO AN ARRAY OF BONDS OF VARYING MATURITY COUPON AND RISK MANY OF THESE BONDS CREATED WHEN RATES WERE LOWER AND HOMEOWNERS BEGAN PREPAID MORTGAGES AT A FURIOUS PACE NOW LANGUISH AS MUCH AS SEVENTY FIVE percent BELOW THEIR HIGH POINT LAST YEAR BUT BY AND LARGE ANALYSTS SAY THE SURPRISE LOSSES AND THE FORCED SELLING ARE OVER THIS MARKET IS GOING THROUGH THE SAME THING THAT JUNK BONDS DID IN NINETEEN NINETY SAYS EDWARD SPORL A GREENBRAE CALIFORNIA MONEY MANAGER WHO VIEWS THE PRICE DECLINE AS A BUYING OPPORTUNITY THE PARALLELS DO SEEM COMPELLING THEN AS NOW UNDERWRITINGS OF NEW BOND ISSUES SPUTTERED FORCED SELLING DROVE DOWN PRICES AND TRADING WAS SPORADIC THE PROBLEM WITH THIS SECTOR HAS BEEN WHETHER ALL THE STUFF THAT HAD TO BE SOLD HAD COME OUT quote SAYS SALOMON'S MR. PARSEGHIAN INVESTORS WHO MUST MARK TO MARKET THEIR HOLDINGS BOOKING THEM AT EVER FLUCTUATING PRICES ALREADY HAVE DUMPED THEIR SECURITIES MEANWHILE INSURERS AND BANKS THAT CAN HOLD SOME BONDS TO MATURITY SEEM LIKELY TO HOLD TIGHT AS A RESULT OF THE PRICE LEVELING SAYS RAJIV SOBTI OF D. L. J. THERE ARE CERTAIN BUYING OPPORTUNITIES BUT HE CAUTIONS THAT ONLY THE MOST SOPHISTICATED BUYERS SHOULD PICK UP THESE POTENTIALLY TREACHEROUS SECURITIES ONE STABILIZING FACTOR IS THAT NEW SUPPLIES OF THE BONDS HAVE SHRIVELED IN THE THIRD QUARTER WALL STREET FIRMS UNDERWROTE ROUGHLY NINE BILLION DOLLARS OF NEW C. M. O.S ACCORDING TO A NEWSLETTER INSIDE MORTGAGE SECURITIES THAT'S ABOUT ONE SIXTH THE PACE OF UNDERWRITINGS DURING LAST YEAR'S COMPARABLE PERIOD MEANWHILE WALL STREET HAS IDLED MANY MORTGAGE SECURITIES TRADERS AND STRUCTURING EXPERTS EARLIER THIS YEAR WIDESPREAD SELLING TEMPORARILY DRAGGED DOWN C. M. O. PRICES ACROSS THIS SEVEN HUNDRED FIFTY BILLION DOLLAR MARKET EVEN SUPPOSEDLY STABLE SHORT TERM BONDS SKIDDED TWENTY percent ACCORDING TO RESEARCH BY DONALDSON LUFKIN WHAT'S MORE THE MARKET FOR THE PASS THROUGH SECURITIES THAT ARE USED TO CREATE C. M. O.S IS ALSO LIGHTER BECAUSE THERE ARE FEWER MORTGAGES TO POOL PASSTHROUGHS HAVE HELD UP IN PART BECAUSE INVESTORS PREFER TO HOLD THESE EASIER TOUNDERSTAND SECURITIES BUT BUYERS STILL GENERALLY ARE SKITTISH AND IT'S EASY TO SEE WHY FOR MANY C. M. O.S HAVE BEEN THE WORST OF BOTH WORLDS WHEN INTEREST RATES WERE LOW HOMEOWNERS PREPAID THEIR MORTGAGES FORCING BONDHOLDERS TO REINVEST AT STEADILY DECLINING RATES AND TODAY HIGH INTEREST RATES HAVE ERODED THE PACE OF MORTGAGE PREPAYMENTS TO SUCH AN EXTENT THAT THE AVERAGE LIFE OF MANY C. M. O.S quote EXTENDS TRADERS TALK APOCALYPTICALLY OF BONDS STRETCHED FROM TWO TO TWENTY YEARS IN DURATION AND AS BONDS STRETCH THEIR PRICES BECOME INCREASINGLY SENSITIVE TO INTEREST RATE INCREASES MR. PARSEGHIAN AT SALOMON SAYS INTEREST RATES HAVE RISEN SO MUCH THAT MANY HOMEOWNERS ARE UNLIKELY TO PREPAY THEIR MORTGAGES THIS MEANS THE AVERAGE LIFE AND INTEREST SENSITIVITY OF MANY OF THESE CAPRICIOUS BONDS IS AS LONG AS IT CAN BE THAT'S WHY PRICES MAY HAVE BOTTOMED OUT FOR SOME C. M. O.S SAYS MR. SOBTI OF D. L. J. IN A MARKET WITH SUCH A WIDE VARIETY OF SECURITIES MORE MISHAPS ARE ALWAYS POSSIBLE BUT BUYERS MAINLY INSURANCE COMPANIES AND BANKS HAVE BEEN MEANDERING BACK INTO THE MARKET SOME OF THE EARLIEST SIGNS OF LIFE CAME FROM BEAR STEARNS and COMPANY THE BROKERAGE FIRM SEIZED ON THE DEPRESSED PRICES OF SOME C. M. O.S TO REASSEMBLE THE MOST ESOTERIC PIECES INTO A BOND THAT'S EASIER TO VALUE AND ANALYZE THESE ARE BONDS THE FIRM KNOWS WELL BEAR STEARNS WAS A MAJOR UNDERWRITER OF SO CALLED KITCHEN SINK BONDS MADE UP OF THE DETRITUS OF OTHER C. M. O.S WHICH WERE AMONG THE BIGGER PRICE LOSERS SOME STALWART INVESTORS HAVE PLUNGED INTO OFFBEAT BOND TYPES TRADERS SAY TRUST COMPANY OF THE WEST IN LOS ANGELES AND PIMCO THE NEWPORT BEACH CALIFORNIA BOND POWERHOUSE HAVE BEEN DABBLING IN SO CALLED IO INVERSES INTEREST ONLY STRIPS WHOSE COUPONS FALL AS INTEREST RATES RISE THE MARKET FOR THESE WAY OUT BONDS IS SMALL PERHAPS THIRTY BILLION DOLLAR FACE AMOUNT OF BONDS WITH A MARKET VALUE OF TWO BILLION DOLLARS WHICH MAKES THEM FAIRLY ILLIQUID BUT SOPHISTICATES DABBLE IN THESE UNRULY BONDS BECAUSE THEY'RE A CHEAP WAY TO MAKE A BIG BET ON SMALL INTEREST RATE MOVEMENTS NEWCOMERS ALSO ARE VENTURING GINGERLY INTO THE C. M. O. MARKET THOUGH FEW ARE EAGER TO ADVERTISE THEIR PRESENCE MUTUAL FUND MANAGERS SAY THEY FEEL SO MUCH PRESSURE FROM THEIR SHAREHOLDERS THAT THEY ARE RELUCTANT TO ADMIT THEY FIND SOME EXOTICA ATTRACTIVE THAT'S THE POSITION OF SOME MUTUAL FUNDS MANAGED BY WESTERN ASSET MANAGEMENT COMPANY IN PASADENA CALIFORNIA THE MANAGERS RUNNING THE FUNDS NEATLY AVOIDED GETTING WHACKED DURING THE SPRING DOWNDRAFT IN MORTGAGE BOND PRICES NOW SAYS SCOTT GRANNIS AN ECONOMIST WITH THE FIRM THEY ARE CHERRY PICKING FOR BARGAINS WE ARE PROUD OF WHAT WE'RE DOING BECAUSE IT SOUNDED LIKE A GOOD IDEA quote SAYS MR. GRANNIS STILL WE'D RATHER NOT TALK ABOUT IT PRICES OF U. S. TREASURY SECURITIES ENDED MIXED FRIDAY WITH SECURITIES MATURING IN MORE THAN SEVEN YEARS GARNERING SUPPORT FROM A STRONGER DOLLAR AND WITH SHORTER TERM SECURITIES LAGGING DUE TO FEARS OF A MOVE BY THE FEDERAL RESERVE TO RAISE SHORT TERM INTEREST RATES THE PRICE OF THE BENCHMARK THIRTY YEAR TREASURY BOND ROSE MORE THAN ONE QUARTER POINT OR MORE THAN TWO DOLLARS AND FIFTY CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO NINETY SIX AND NINE THIRTY SECONDS TO YIELD SEVEN point EIGHT ONE percent COMPARED WITH SEVEN point EIGHT FOUR percent ON THURSDAY LONGER DATED TREASURYS ROSE FRIDAY WITH THE HELP OF SCATTERED BOUTS OF SHORT COVERING AS DEALERS CLOSED OUT POSITIONS AHEAD OF THE WEEKEND IN A SHORT SALE A TRADER SELLS A BORROWED SECURITY IN HOPES OF BUYING IT BACK LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE COVERING SHORT POSITIONS INVOLVES PURCHASING OTHER SECURITIES TO OFFSET THOSE SALES PARTICIPANTS SAID THAT WITH U. S. JAPAN TRADE NEGOTIATIONS CONTINUING INTO THE WEEKEND INVESTORS WERE RELUCTANT TO LEAVE SHORT POSITIONS ON THE BOOKS THE DOLLAR TRADED AT NINETY NINE point ONE FIVE YEN COMPARED WITH NINETY EIGHT point SIX OH YEN LATE THURSDAY MEANWHILE SHORT TERM SECURITIES REMAINED UNDER WATER WITH INVESTORS FEARING A TIGHTENING MOVE BY THE FEDERAL RESERVE IN COMING SESSIONS WHILE MARKET PARTICIPANTS GENERALLY BELIEVE THE FED IS LIKELY TO WAIT UNTIL MID OCTOBER TO ACT ON INTEREST RATES SOME FEAR A STRONG SEPTEMBER EMPLOYMENT REPORT COULD PROMPT A MOVE THE MOOD IN THE BOND MARKET IS VERY VERY GUARDED SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORPORATION BOND INVESTORS ARE CONCERNED THAT THE FED HAS FALLEN BEHIND THE CURVE ON ITS NEED TO TEMPER ECONOMIC GROWTH MOST BELIEVE THE FED MISSED A WINDOW OF OPPORTUNITY TO REAFFIRM ITS RESOLVE ON INFLATION AND BOLSTER ITS CREDIBILITY WITH THE FINANCIAL MARKETS MARKET OBSERVERS SAID AND WHILE SOME INVESTORS ARE TAKING SOLACE IN THE FACT THAT MOST STILL EXPECT A MOVE TO COME SOON FEW BUYERS ARE WILLING TO JUMP BACK INTO THE BOND MARKET PARTICULARLY AFTER LAST WEEK'S BARRAGE OF STRONG ECONOMIC REPORTS ON JOB CLAIMS DURABLE GOODS ORDERS AND GROSS DOMESTIC PRODUCT AFTER DROPPING SHARPLY THURSDAY TRADERS REPORT THAT U. S. AIR INCORPORATED'S TEN percent COUPON DEBT MATURING IN TWO THOUSAND THREE ROSE TWO AND ONE HALF POINTS OR TWENTY FIVE DOLLARS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO SIXTY FOUR THE PRICE OF THE BONDS FELL LAST THURSDAY WHEN U. S. AIR GROUP INCORPORATED U. S. AIR INCORPORATED'S PARENT DISCLOSED THAT IT WAS DEFERRING DIVIDEND PAYMENTS ON ITS PREFERRED SHARES MARKET PARTICIPANTS WERE IMPRESSED BY THE FACT THAT U. S. AIR'S SHAREHOLDERS BACKED THE PLAN TO CUT THE PAYMENTS WHICH THEY BELIEVE WILL PUT MORE PRESSURE ON THE COMPANY'S UNIONS ADDITIONALLY THE COMPANY WILL HAVE MORE CASH ON HAND quote THEY ARE SAVING MONEY BY NOT PAYING THE PREFERRED THAT'S VERY POSITIVE FOR THE BONDHOLDERS ONE TRADER SAID PRESIDENT LEE TENGHUI EXPRESSED DISAPPOINTMENT THAT CHINA'S EFFORTS TO BLOCK HIM FROM ATTENDING INTERNATIONAL GATHERINGS HAVE PRECLUDED AN IDEAL OPPORTUNITY TO HOLD HISTORIC TALKS WITH CHINESE LEADERS PRESIDENT LEE IN AN INTERVIEW FRIDAY SAID HE HAD HOPED TO MEET WITH A SENIOR CHINESE LEADER AT THE HIROSHIMA ASIAN GAMES WHICH OPENED YESTERDAY OR AT THE SUMMIT OF ASIA PACIFIC HEADS OF STATE NEXT MONTH IN INDONESIA BUT MR. LEE SAID THAT NOW WON'T BE POSSIBLE BECAUSE HIS INVITATION TO THE ASIAN GAMES WAS REVOKED AND BECAUSE HE IS UNLIKELY TO BE ALLOWED TO ATTEND THE SUMMIT OF THE ASIA PACIFIC ECONOMIC COOPERATION FORUM IN THE COURSE OF THE NEARLY TWO AND A HALF HOUR INTERVIEW THE SEVENTY ONE YEAR OLD PRESIDENT SPOKE ANIMATEDLY ON SUBJECTS RANGING FROM TAIWANESE POLITICS TO THE MESHING OF ASIAN AND WESTERN VALUES AMONG THE POINTS HE MADE ON CURRENT POLITICAL ISSUES RECENT DIPLOMATIC SETBACKS SUFFERED BY TAIWAN HAVEN'T UNDERMINED HIS DETERMINATION TO SEEK A HIGHER INTERNATIONAL PROFILE FOR HIS COUNTRY WHICH IS FORMALLY RECOGNIZED BY ONLY TWENTY NINE GOVERNMENTS CHINA'S CAMPAIGN TO BLOCK TAIWAN'S FOREIGN POLICY INITIATIVES AND ITS RECENT HANDLING OF THE MURDER OF TAIWANESE TOURISTS ON THE MAINLAND ONLY MAKE THE TAIWANESE PEOPLE MORE LEERY OF GREATER INVOLVEMENT WITH THE MAINLAND SINCE THE KILLINGS IN MARCH HE SAID THE GROWTH RATE OF TAIWANESE INVESTMENT IN CHINA HAS BEEN HALVED THE HEALTH OF CHINA'S PARAMOUNT LEADER DENG XIAOPING HAS DETERIORATED TO THE POINT THAT HE'S NO LONGER MAKING DECISIONS CREATING A LEADERSHIP VACUUM IN BEIJING THAT APPARENTLY MAKES IT IMPOSSIBLE FOR NEW IDEAS ON TAIWAN RELATIONS OR OTHER ISSUES TO BE DISCUSSED WE DON'T THINK DENG IS IN ANY POSITION TO EXERCISE HIS BRAINS quote MR. LEE SAID FOREIGN POLICY ISSUES WERE AMONG THE PRESIDENT'S PRIMARY CONCERNS WITHOUT PROMPTING HE RAISED THE ISSUE OF MEETING SENIOR CHINESE LEADERS PRESIDENT LEE EARLIER THIS YEAR EXPRESSED AN INTEREST IN MEETING CHINA'S HEAD OF STATE JIANG ZEMIN DURING AN INTERVIEW WITH A JAPANESE HISTORIAN BUT HIS LATEST STATEMENTS REPRESENT A SIGNIFICANT DEVELOPMENT OF THE NOTION THE TAIWAN GOVERNMENT ONCE REJECTED ANY PROPOSALS TO HOLD FACE TO FACE MEETINGS CONFINING ALL INTERACTION WITH CHINA TO RELATIVELY LOW LEVEL MEETINGS MOREOVER PRESIDENT LEE IN THE PAST PUBLICLY SCOFFED AT THE IDEA OF MEETING MR. JIANG AT AN APEC SUMMIT MEANWHILE BEIJING CONSISTENTLY HAS REFUSED TO ACCEPT PRESIDENT LEE'S PRESENCE AT ANY INTERNATIONAL GATHERING FOR FEAR OF GRANTING LEGITIMACY TO A MAN WHOM THEY REGARD AS THE LEADER OF A RENEGADE PROVINCE CHINA DEMANDS THAT THE TAIWAN ISSUE BE TREATED AS A PURELY DOMESTIC MATTER BY FOCUSING ON REGIONAL GATHERINGS SUCH AS THE APEC SUMMIT OR THE ASIAN GAMES MR. LEE CLEARLY HAD AN EYE TO A PUBLIC SETTING THAT WOULD BE ACCEPTABLE TO TAIWAN WHERE MANY PEOPLE ARE NERVOUS ABOUT DIRECT TALKS WITH BEIJING HIROSHIMA OR APEC WOULD BE IDEAL PLACES FOR MEETINGS OF THAT TYPE HE SAID IT WOULD BE BEST TO HAVE AN OPEN MEETING TO EXPRESS OUR POSITIONS BUT IF ANY MEETING IS TO BE HELD THE CHINESE COMMUNISTS WOULD LIKE IT TO BE HELD IN GREAT SECRECY BEYOND EXPRESSING AN INTEREST IN MEETING CHINESE LEADERS PRESIDENT LEE SPOKE ONLY CRITICALLY OF BEIJING DURING HIS INTERVIEW HE WAS PARTICULARLY BITTER ABOUT CHINA'S EFFORTS TO BLOCK HIM FROM ATTENDING THE HIROSHIMA GAMES BUT HE INSISTED THAT SUCH DIPLOMATIC SETBACKS INCLUDING BEIJING'S SUCCESS IN KEEPING TAIWAN'S BID TO RE ENTER THE UNITED NATIONS OFF THIS YEAR'S GENERAL ASSEMBLY AGENDA WON'T DETER TAIWAN FROM PURSUING A WIDER ROLE IN THE WORLD MR. LEE SAID THE RECENT UPROAR OVER THE HIROSHIMA GAMES WHICH OPENED LAST WEEKEND WITH TAIWANESE VICE PREMIER HSU LI TEH IN ATTENDANCE DESPITE CHINESE OBJECTIONS quote DEFINITELY PROVED TO BE TO TAIPEI'S ADVANTAGE INDEED THE PRESIDENT APPEARED PLEASED BY THE INTERNATIONAL ATTENTION TAIWAN HAS RECEIVED BECAUSE OF THE CONTROVERSY THE MOST SIGNIFICANT DAMAGE FROM BEIJING'S EFFORTS TO BLOCK TAIWAN'S DIPLOMATIC EFFORTS PRESIDENT LEE SAID IS IN TAIWAN WHERE ATTITUDES TOWARD THE MAINLAND HAVE HARDENED WHILE HIS GOVERNMENT PROMOTES THE GOAL OF EVENTUAL REUNIFICATION WITH CHINA HE SAID BEIJING'S ACTIONS HAVE DAMAGED THE MUTUAL TRUST THAT HAS BEEN SO HARD TO CREATE AFTER YEARS OF MILITARY STANDOFF THE MURDER OF TWENTY FOUR TAIWANESE TOURISTS IN CHINA IN MARCH HAS CONTRIBUTED TO THE TAIWANESE PUBLIC'S NEGATIVE VIEW OF CHINA THE PRESIDENT ADDED THE PRESIDENT SPENT MUCH OF THE INTERVIEW DELVING INTO PHILOSPHICAL AND ETHICAL ISSUES ASKED ABOUT THE DEBATE OVER WESTERN AND EASTERN VALUES IN ASIAN POLITICAL CIRCLES MR. LEE SPOKE FOR MORE THAN THIRTY MINUTES ABOUT THE APPLICATION OF DEMOCRATIC VALUES IN DIFFERENT POLITICAL CULTURAL AND RELIGIOUS SETTINGS HE SAID THAT IN THE DEBATE HE HAS ALWAYS LEANED TOWARD COMPROMISE AND TOLERANCE ESCHEWING THE STRONG ARM METHODS THAT OTHER ASIAN GOVERNMENTS MIGHT USE PRESIDENT LEE CITED A RECENT CONTROVERSY OVER UNDERGROUND RADIO STATIONS IN TAIWAN TO ILLUSTRATE HIS THINKING IN RECENT MONTHS SEVERAL ILLEGAL OPPOSITION BROADCASTERS HAVE SPRUNG UP IN THE ISLAND'S MAJOR CITIES USING A CALL IN PROGRAM FORMAT TO ATTACK THE GOVERNMENT ALTHOUGH THE AUTHORITIES HAVE SHUT DOWN SOME OF THE STATIONS OTHERS CONTINUE TO SPRING UP AND THE GOVERNMENT HAS TAKEN STEPS TO ALLOW SOME LEGAL ACCESS TO THE AIRWAVES SOME PEOPLE SAY FORCE SHOULD BE USED TO LET THE PUBLIC POWER PREVAIL quote ON THIS ISSUE PRESIDENT LEE SAID MAYBE THE USE OF FORCE CAN SOLVE THE ISSUE FOR A SHORT PERIOD OF TIME BUT PEOPLE'S DISCONTENTS ARE STILL THERE AS LONG AS SOCIETY ISN'T SETTLED WE HAVE TO TAKE THINGS ONE STEP AT A TIME MOTOROLA INCORPORATED A GIANT IN MICROCHIPS AND COMMUNICATIONS GEAR PLANS A MAJOR NEW FORAY INTO COMPUTER MANUFACTURING CONFIDENTLY PREDICTING IT CAN TEAR BIG CHUNKS OF MARKET SHARE AWAY FROM RIVALS WITHIN A YEAR ED STAIANO PRESIDENT OF THE COMPANY'S GENERAL SYSTEMS DIVISION WHICH INCLUDES CELLULAR PHONE OPERATIONS SAID MOTOROLA PLANS TO BEGIN MANUFACTURING WORKSTATIONS AND SERVERS USING THE NEW POWERPC MICROPROCESSOR WHICH MOTOROLA DEVELOPED WITH INTERNATIONAL BUSINESS MACHINES CORPORATION AND APPLE COMPUTER INCORPORATED WORKSTATIONS ARE POWERFUL DESKTOP MACHINES OFTEN USED IN SCIENCE ENGINEERING AND FINANCIAL ANALYSIS SERVERS ACT AS HOSTS FOR NETWORKS MOST IF NOT ALL OF THE COMPUTERS WILL BE MADE FOR ABOUT TWENTY TO THIRTY MANUFACTURERS AND RESELLERS WHICH MOTOROLA DECLINED TO IDENTIFY FRANCE'S COMPANY DES MACHINES BULL IS ONE OF THEM ACCORDING TO INDUSTRY SOURCES MOTOROLA WILL ALSO MAKE POWERPC MOTHERBOARDS WHICH ARE THE MAIN CIRCUIT BOARDS FOR COMPUTERS FOR OTHER COMPUTER MAKERS AND EVENTUALLY MAY ENTER THE PERSONAL COMPUTER MARKET AS WELL MR. STAIANO SAID HE EXPECTS SHIPMENTS OF BETWEEN TWO HUNDRED FIFTY THOUSAND AND THREE HUNDRED THOUSAND WORKSTATIONS SERVERS AND POWERPC MOTHERBOARDS COMBINED IN NINETEEN NINETY FIVE MOTOROLA OFFICIALS DIDN'T SPECIFY HOW MANY COMPUTERS IT PLANS TO SHIP BUT THE OVERALL FORECAST INDICATES THAT MOTOROLA EXPECTS TO MAKE SIGNIFICANT INROADS INTO THE WORKSTATION AND SERVER MARKETS WHICH WILL HAVE COMBINED NINETEEN NINETY FOUR UNIT SHIPMENTS OF ABOUT ONE MILLION UNITS MOTOROLA IS AGGRESSIVELY PRICING LOW END WORKSTATIONS AS LOW AS THREE THOUSAND SEVEN HUNDRED NINETY DOLLARS AND SERVERS AS LOW AS SIX THOUSAND NINE HUNDRED SIXTY FIVE DOLLARS LEVELS THAT ARE CLOSE TO PRICE LEADERS SUCH AS HEWLETT PACKARD COMPANY MR. STAIANO PROJECTED REVENUE GROWTH FROM THE LINE WOULD INCREASE FIFTY percent ANNUALLY quote WE INTEND TO BE VERY AGGRESSIVE MR. STAIANO SAID OTHER WORKSTATION MAKERS SUGGEST MOTOROLA MAY BE LETTING ITS ENORMOUS SUCCESS IN PAGERS AND CELLULAR PHONES GO TO ITS HEAD THE RAPID SPREAD OF WIRELESS COMMUNICATIONS AROUND THE WORLD HAS MADE MOTOROLA ONE OF THE TWO FASTEST GROWING COMPANIES AMONG THE RANKS OF MAJOR AMERICAN MULTINATIONALS MOTOROLA'S REVENUES THIS YEAR ARE EXPECTED TO JUMP ABOUT THIRTY percent TO TWENTY TWO BILLION DOLLARS BUT THE WORKSTATION AND SERVER MARKETS ARE FIERCELY COMPETITIVE AND DOMINATED BY THE OTHER FASTEST GROWING MULTINATIONAL HEWLETT PACKARD AS WELL AS BY SUN MICROSYSTEMS INCORPORATED I. B. M. AND DIGITAL EQUIPMENT CORPORATION I CERTAINLY WON'T LOSE MUCH SLEEP ABOUT IT SAID WIM ROELANDTS GENERAL MANAGER FOR COMPUTER SYSTEMS FOR HEWLETT PACKARD THE OVERALL WORKSTATION MARKET IS MATURING SO IT WILL BE VERY DIFFICULT TO GROW FROM ZERO quote ADDED BOB PEARSON A WORKSTATION MARKETING DIRECTOR FOR SUN JUST PUTTING PRODUCT OUT WITH A GOOD PRICE DOES NOT GUARANTEE VOLUME IN THE WORKSTATION BUSINESS MOREOVER MOTOROLA HAS ALREADY FLOPPED IN PREVIOUS ATTEMPTS TO BECOME A MAJOR WORKSTATION AND SERVER MANUFACTURER IT WAS MR. STAIANO WHO HAD PROCLAIMED MOTOROLA'S COMING OUT PARTY IN NINETEEN NINETY WHEN IT LAUNCHED A LINE OF SERVERS HE CONCEDED IN AN INTERVIEW LAST WEEK THAT BUSINESS NEVER TOOK OFF IN PART BECAUSE OF A DEFECTIVE OPERATING SYSTEM MOTOROLA'S SHARE OF THE TEN point TWO FIVE BILLION DOLLARS SERVER MARKET IS ABOUT TWO percent THE COMPANY ALSO TRIED TO DEVELOP A MARKET FOR BUILDING COMPUTERS FOR RESELLERS AND MANUFACTURERS A FEW YEARS AGO BUT DIDN'T SUCCEED ITS COMPUTER SALES ARE EXPECTED TO AMOUNT TO ONLY ABOUT FIVE HUNDRED MILLION DOLLARS OR TWO percent OF MOTOROLA'S PROJECTED NINETEEN NINETY FOUR REVENUE DAVID CARD AN ANALYST AT INTERNATIONAL DATA CORPORATION FRAMINGHAM MASSACHUSETTS SAID MOTOROLA MIGHT MAKE GAINS IN THE RELATIVELY NEW SERVER MARKET BUT WORKSTATION MAKERS ARE TOO ENTRENCHED quote THEY COULD GAIN SIGNIFICANT SHARE IN SERVERS BUT NOT WORKSTATIONS OR P. C.S HE SAID BUT MOTOROLA SAYS IT HAS LEARNED TO BECOME AN EXTREMELY EFFICIENT LOW COST MANUFACTURER WE INTEND TO BE THE PRICE LEADER IN WORKSTATIONS AND SERVERS MR. STAIANO SAID MOREOVER MOTOROLA ASSERTS THAT THE POWERPC MICROPROCESSOR IS A POWERFUL INEXPENSIVE PLATFORM FOR HIGH END COMPUTERS APPLE IS SELLING A LINE OF POWERPC PERSONAL COMPUTERS AND I. B. M. IS SELLING POWERPC WORKSTATIONS MOTOROLA IS GETTING INTO THE WORKSTATION BUSINESS AGAIN TO DRIVE THE POWERPC EFFORT MR. STAIANO SAID ADDING THAT WE HAVE A LOT OF PEOPLE WHO HAVE ASKED US TO PUT THIS TOGETHER quote BUT IN THE NEAR TERM ANY MOTOROLA SUCCESS IS APT TO COME FIRST OUT OF THE HIDE OF ITS POWERPC PARTNER I. B. M. MOTOROLA'S FIRST WORKSTATIONS AND SERVERS WILL USE I. B. M.'S A. I. X. VERSION OF THE UNIX OPERATING SYSTEM FOR WORKSTATIONS AND SERVERS I. B. M. TOO HAD VOWED TO UNSEAT HEWLETT PACKARD AND SUN AS MARKET LEADERS WHEN IT LAUNCHED ITS LINE OF R. S. SIX THOUSAND SERVERS AND WORKSTATIONS ABOUT THREE YEARS AGO BUT REMAINS BACK IN THE PACK WITH LESS THAN ONE HUNDRED THOUSAND UNIT SHIPMENTS A YEAR COMBINED SUN EXPECTS TO SHIP ABOUT THREE HUNDRED THOUSAND WORKSTATIONS ALONE THIS YEAR SOON THOUGH MOTOROLA OFFICIALS SAY THEY INTEND TO BUILD WORKSTATIONS AND SERVERS SUPPORTING OTHER OPERATING SYSTEMS INCLUDING MICROSOFT CORPORATION'S N. T. AND PERHAPS APPLE'S MACINTOSH SYSTEM WHICH IS TO BE BROADLY LICENSED FOR THE FIRST TIME MR. STAIANO MOREOVER DOESN'T RULE OUT MOTOROLA ENTERING THE HIGH VOLUME BUSINESS OF PERSONAL COMPUTER MANUFACTURING SOURCES CLOSE TO THE COMPANY SAY THEY EXPECT SUCH AN ANNOUNCEMENT SOON FEVERISH IMAGES HAUNT THE WEEK'S HEALTH NEWS MASKED DOCTORS TREATING MASKED PATIENTS IN PLAGUE STRICKEN INDIA THE EPIDEMIC IGNITES PANIC ABROAD AND FEAR AT HOME IT IS A REMINDER THAT IN THE LATE TWENTIETH CENTURY THE WORLD IS STILL VULNERABLE TO AN ANCIENT MICROBE WHAT IS HAPPENING GERMS ONCE THOUGHT TO BE DEFEATED ARE ERUPTING ANEW PLAGUE IS JUST THE LATEST DISEASE TO MAKE HEADLINES POVERTY WAR AND JET TRAVEL HELP GERMS FIND NEW VICTIMS BE THEY IN INDIA RWANDA OR THE AMERICAN CONTINENT WHETHER THE SETTING IS A REFUGEE CAMP OR A CRUISE SHIP SHIFTING POPULATIONS FUEL EPIDEMICS PLAGUE CAUSED BY THE BACTERIUM YERSINIA PESTIS IS THE SAME DISEASE THAT SAVAGED MEDIEVAL EUROPE AND ASIA AS THE BLACK DEATH THE GERM'S MAIN HOSTS ARE FLEA BEARING RODENTS WHICH CAN BITE AND INFECT HUMANS IN BUBONIC PLAGUE THE BACTERIA ENTER THROUGH AN INFECTED BITE TO INVADE THE BLOODSTREAM AND LYMPH NODES IN PNEUMONIC PLAGUE THE VERY SAME BACTERIA INFECT THE LUNGS AND ARE SPREAD BY COUGHING UNTREATED PLAGUE DEATH CAN COME WITHIN DAYS BUT TODAY STREPTOMYCIN AND OTHER ANTIBIOTICS ARE EFFECTIVE TREATMENTS TETRACYCLINE AND SIMILAR DRUGS ARE USED AS PREVENTIVE MEDICINE FOR THOSE WHO HAVE BEEN EXPOSED WITH CARE A DEATH TOLL AS HIGH AS ONE HUNDRED percent DROPS AS LOW AS TEN percent SHOULD AMERICANS WORRY DESPITE THOUSANDS OF AIRLINE CANCELATIONS quote TRAVELERS TO INDIA ARE AT LOW RISK FOR PLAGUE SAYS THE U. S. CENTERS FOR DISEASE CONTROL AND PREVENTION STILL C. D. C. URGES TRAVELERS TO AVOID AREAS WITH CONFIRMED PLAGUE CASES IF THEY MUST TRAVEL THE AGENCY ADVISES STAYING OUT OF RAT INFESTED ZONES USING PESTICIDES CONTAINING DEET ON CLOTHES AND BEDDING AND TAKING PREVENTIVE TETRACYCLINE THE DANGER AT HOME IS EVEN SMALLER TO LIMIT THE RISK OF PLAGUE C. D. C. IS HANDING OUT WARNING CARDS TO TRAVELERS ARRIVING FROM INDIA AT SEVEN U. S. AIRPORTS WITH QUARANTINE STATIONS NEW YORK CHICAGO MIAMI LOS ANGELES SAN FRANCISCO HONOLULU AND SEATTLE THE CARDS ALERT PASSENGERS TO SYMPTOMS OF PLAGUE AND OFFER MEDICAL REFERRALS PLAGUE IS ONE OF THREE REMAINING DISEASES IN THE WORLD ALONG WITH CHOLERA AND YELLOW FEVER FOR WHICH PEOPLE CAN BE PLACED IN QUARANTINE SAYS DAVID DENNIS A DOCTOR AT C. D. C.'S NATIONAL PLAGUE CENTER IN FORT COLLINS COLORADO FLIGHT CREWS ON PLANES BOUND FROM INDIA MUST CALL U. S. HEALTH OFFICIALS ON THE GROUND IF A PASSENGER ON THE PLANE IS SICK IF SO A DOCTOR AND QUARANTINE OFFICER MEET THE PLANE ON THE TARMAC BEFORE ANYONE CAN DISEMBARK BY LAW PLAGUE PATIENTS MUST BE QUARANTINED FELLOW PASSENGERS THEN ARE FOLLOWED BY PHONE FOR THE GERM'S SEVEN DAY INCUBATION PERIOD IF A DOMESTIC CASE IS CONFIRMED C. D. C. IS POISED TO SEND MEDICAL OFFICERS TO LONDON PARIS FRANKFURT OR OTHER STOPOVER CITIES TO TRACE CONTACTS DESPITE A BRIEF SCARE POSED BY AN AILING WOMAN WHO LANDED IN NEW YORK FROM BOMBAY LAST WEEK NO INDIAN PLAGUE CASES HAVE YET BEEN CONFIRMED OR QUARANTINED HERE AS FAR AS WE KNOW A CASE OF PNEUMONIC PLAGUE HASN'T TRAVELED BY AIR quote DOCTOR DENNIS NOTES EVEN IF THIS HAPPENS EXPERTS SAY THE NIGHTMARE SCENARIO OF A PLAGUE CARRIER INFECTING MANY PEOPLE ISN'T LIKELY PLAGUE PATIENTS FALL TOO ILL AND NEED URGENT CARE TOO QUICKLY TO POSE A TYPHOID MARY TYPE THREAT IN ANY CASE PLAGUE ISN'T A NEW IMPORT HERE PLAGUE HAS LONG INHABITED THE AMERICAN LANDSCAPE INFECTING ANIMALS FROM NEW MEXICO PRAIRIE DOGS TO CALIFORNIA SQUIRRELS MORE THAN THREE HUNDRED PEOPLE HAVE CONTRACTED PLAGUE IN THE U. S. SINCE NINETEEN FORTY SEVEN MOSTLY IN THE WEST COEXISTENCE OF PLAGUE HERE AND ABROAD SHOWS THAT IN HEALTH MATTERS THE WORLD IS ONE NEIGHBORHOOD CENTURIES AFTER DANIEL DEFOE'S A JOURNAL OF THE PLAGUE YEAR HIS PORTRAIT OF LONDON'S SHUTTERED HOUSES AND SHUNNED NEIGHBORS SEEMS A POIGNANT PROPHECY NOW JET TRAVEL TURNS WHOLE NATIONS INTO NEIGHBORS THIS PLAGUE EPIDEMIC SHOWS US THAT WE'VE BEEN THINKING IN OLD FASHIONED WAYS ABOUT THE REALITIES OF DISEASE IN THE MODERN WORLD IT'S THE MAGINOT LINE APPROACH CREATE A BARRIER AND STAND BEHIND IT THAT WON'T WORK SAYS JONATHAN MANN A PROFESSOR AT HARVARD UNIVERSITY'S SCHOOL OF PUBLIC HEALTH NOR WILL IT WORK TO WAIT FOR DISASTER AND THEN REACT TOO LATE WHAT WILL WORK IS A PROGRAM OF DISEASE SURVEILLANCE AND PREVENTION THAT LINKS C. D. C. THE WORLD HEALTH ORGANIZATION AND FOREIGN HEALTH AGENCIES AROUND THE WORLD HE SAYS DOCTOR MANN EXHORTS AMERICANS TO quote LEARN THE LESSON WHICH PEOPLE IN BUSINESS AND COMMUNICATIONS HAVE ALREADY LEARNED THAT OF GLOBALIZATION HE URGES AMERICANS TO CHANNEL THEIR CONCERN INTO SUPPORT FOR PREVENTION THIS PLAGUE ISN'T A THREAT THIS TIME BUT THE NEXT EPIDEMIC IS ONLY A MATTER OF TIME AMID NEWLY ERUPTING EPIDEMICS C. D. C. DIRECTOR DAVID SATCHER WARNS WE CANNOT ALLOW OUR PUBLIC HEALTH INFRASTRUCTURE TO DETERIORATE NATIONALLY OR INTERNATIONALLY quote ONLY ONE percent OF THE NATION'S HEALTH BUDGET GOES FOR POPULATION BASED PREVENTION AMID THE LONG SCOURGE OF AIDS IT'S ALL TOO EASY TO ATTACK C. D. C.'S MISSION IMPOSSIBLE OF FORECASTING AND ABORTING OUTBREAKS MOREOVER PREVENTION IS MOST SUCCESSFUL WHEN IT'S INVISIBLE IF YOU TRANSPLANT ONE ORGAN IT'S NEWS DOCTOR SATCHER SAYS IF YOU PREVENT A MILLION PEOPLE FROM GETTING SMALLPOX NOBODY KNOWS WHAT YOU DID THE HEALTH OF AMERICA IS ENMESHED WITH THE HEALTH OF THE WORLD THESE EXPERTS INSIST WITHOUT SUSTAINED INVESTMENT IN PREVENTION THEY FEAR WE'LL NEVER CONTAIN THE COSTS OF TREATMENT FISCAL OR HUMAN THE DEMISE OF CAMPAIGN FINANCE REFORM ANOTHER HIGH PROFILE EMBARRASSMENT FOR THE WHITE HOUSE AND DEMOCRATIC LEADERS ALMOST CERTAINLY DOOMS HOPES FOR REVAMPING THE CURRENT SYSTEM FOR THE REST OF PRESIDENT CLINTON'S TERM HOUSE AND SENATE DEMOCRATS WHO BELATEDLY OFFERED A COMPROMISE REFORM PLAN LATE LAST WEEK ALREADY HAVE LITTLE STOMACH FOR AN ISSUE THEY BELIEVE HURTS THEIR OWN INCUMBENTS WITHOUT EARNING MUCH PUBLIC FAVOR AND REPUBLICANS WHO BURIED THE COMPROMISE ON THE SENATE FLOOR LATE LAST WEEK ARE SURE TO EMERGE FROM THE NOVEMBER ELECTIONS IN STRONGER POSITION TO DO SO AGAIN IN THE ONE HUNDRED FOURTH CONGRESS THE OUTCOME DASHED ONE OF THE PRESIDENT'S MOST SIGNIFICANT PROMISES FROM THE NINETEEN NINETY TWO CAMPAIGN IN WHICH MR. CLINTON ROSS PEROT AND OTHERS DECRIED THE CORROSIVE EFFECT OF SPECIAL INTEREST MONEY ON WASHINGTON IT WAS ALSO A BITTER DEFEAT FOR SENATE MAJORITY LEADER GEORGE MITCHELL WHO MADE CAMPAIGN REFORM AN ABIDING PRIORITY THE RETIRING MAINE DEMOCRAT FELL EIGHT VOTES SHORT IN ONE LAST ATTEMPT TO BREAK A G. O. P. FILIBUSTER PICKING UP SUPPORT FROM TWO REPUBLICANS BUT LOSING SIX DEMOCRATS IN THE FIFTY TWO TO FORTY SIX RESULT quote THIS SYSTEM STINKS MR. MITCHELL DECLARED AFTERWARD DENOUNCING THE DAILY REALITY OF CANDIDATES' BEGGING SPECIAL INTERESTS FOR CAMPAIGN CASH MONEY IS THE SYSTEM MR. CLINTON'S AIDES AND DEMOCRATIC LEADERS ALIKE BLAMED REPUBLICANS FOR BLOCKING THE COMPROMISE WHICH WOULD HAVE IMPOSED VOLUNTARY SPENDING CEILINGS FOR CANDIDATES PROVIDED LIMITED PUBLIC FINANCING FOR THOSE WHO COMPLIED AND REDUCED THE MAXIMUM DONATION FROM POLITICAL ACTION COMMITTEES TO SIX THOUSAND DOLLARS FROM TEN THOUSAND DOLLARS PER ELECTION BUT THE ISSUE WILL BE OF LIMITED POLITICAL USE TO MR. CLINTON'S BELEAGUERED PARTY SINCE IT UNDERSCORES THE DEMOCRATS' FAILURE TO DELIVER AT A TIME THEY CONTROL THE WHITE HOUSE AND BOTH HOUSES OF CONGRESS THAT FAILURE IS PARTICULARLY DAMAGING FOR THE LARGE AND VULNERABLE CLASS OF DEMOCRATIC FRESHMEN MANY OF WHOM HAD MADE REFORM A CENTERPIECE OF THEIR POLITICAL AGENDA PRESIDENT CLINTON NEVER FOUGHT FOR CAMPAIGN FINANCE REFORM quote COMPLAINED FRED WERTHEIMER PRESIDENT OF THE SELF STYLED PUBLIC INTEREST LOBBY COMMON CAUSE MEANWHILE HE ADDED HOUSE LEADERS DAWDLED FOR MONTHS BEFORE COMPROMISING WITH THEIR SENATE COUNTERPARTS UNTIL REFORM BECAME A SITTING DUCK FOR REPUBLICAN OBSTRUCTION IN THE SESSION'S WANING DAYS AT THE HEART OF THE PLAN'S DIFFICULTIES ARE THE DEEP MISGIVINGS OF MANY RANK AND FILE DEMOCRATS BLACK LAWMAKERS REPRESENTING LOW INCOME DISTRICTS WERE PARTICULARLY WARY OF REDUCING PAC CONTRIBUTIONS WHILE CONSERVATIVES BALKED AT SUPPORTING PUBLIC FINANCING THERE WON'T BE A LOT OF REGRET AT THE OUTCOME SAID REPRESENTATIVE ROBERT TORRICELLI D. N. J. MR. MITCHELL PREDICTED THAT AMERICANS WILL EVENTUALLY quote RISE UP IN INDIGNATION AND DEMAND REFORM BUT THEY MAY NOT GET IT ANYTIME SOON SENATOR DAVID BOREN D. OKLAHOMA THE OTHER LEADING SENATE PROPONENT WILL JOIN HIM IN RETIREMENT LATER THIS YEAR AND SENATOR MITCH MCCONNELL R. KENTUCKY POINT MAN ON THE ISSUE FOR THE SURGING G. O. P. SAYS OVERHAULING THE SYSTEM WILL BE A LOW PRIORITY FOR HIS PARTY THE BASIC LEGISLATION IN PLACE IS FINE SAID MR. MCCONNELL ALTHOUGH HE SAID THE G. O. P. MIGHT AGREE TO A MOVE TO REDUCE MAXIMUM PAC CONTRIBUTIONS AS FOR VOTERS' UNHAPPINESS WITH THE SYSTEM HE ADDED THE PUBLIC DOESN'T UNDERSTAND IT quote JUST DAYS AFTER QUESTIONS WERE RAISED ABOUT HER PAST DEALINGS WITH KIDDER PEABODY and COMPANY J. JULIE JASON AN ARBITRATOR IN A WIDELY WATCHED DISPUTE INVOLVING KIDDER SAID SHE WILL STEP DOWN FROM A NEW YORK STOCK EXCHANGE ARBITRATION PANEL MS. JASON'S RESIGNATION COMES AS THE BIG BOARD WAS CONSIDERING A BID TO DISQUALIFY HER FROM HANDLING AN ARBITRATION BATTLE BETWEEN THE GENERAL ELECTRIC COMPANY UNIT AND ALPHONSE FLETCHER JUNIOR A HIGHFLYING STOCK TRADER WHO LEFT KIDDER IN NINETEEN NINETY ONE MR. FLETCHER WHO IS BLACK HAS ACCUSED KIDDER OF RACIAL DISCRIMINATION IN A COUNTERCLAIM KIDDER IS SEEKING A DECLARATORY JUDGMENT THAT THE FIRM DIDN'T DISCRIMINATE AGAINST MR. FLETCHER AS REPORTED IN THIS NEWSPAPER LAST WEEK MS. JASON HAD ALLEGEDLY TOLD A BIG BOARD LAWYER THAT SHE HAS HAD DISCUSSIONS TO SELL HER SMALL BROKERAGE FIRM TO KIDDER RAISING QUESTIONS ABOUT HER IMPARTIALITY IN THE MATTER ACCORDING TO PAPERS FILED WITH THE EXCHANGE'S ARBITRATION CHIEF IN A LETTER TO THE BIG BOARD FRIDAY MS. JASON SAID SHE WAS RESIGNING FROM THE PANEL BECAUSE OF INACCURATE INFORMATION PUBLICIZED IN THIS NEWSPAPER BY JEFFREY LIDDLE MR. FLETCHER'S LAWYER THESE TYPE OF TACTICS BY COUNSEL DEMEAN THE ARBITRATION PROCESS AND EXPOSE ARBITRATORS TO UNWARRANTED EXTRANEOUS PRESSURES SHE WROTE IN HER LETTER quote IN THIS CASE THEY MAKE MY CONTINUATION ON THE PANEL IMPOSSIBLE THIS HEALTH CARE PROVIDER DECLARED A DIVIDEND OF ONE PURCHASE RIGHT FOR EACH SHARE OUTSTANDING THE DIVIDEND PAYABLE TO STOCK OF RECORD NOVEMBER SECOND HAS AN EXERCISE PRICE OF SEVENTY DOLLARS A SHARE AND A TEN YEAR EXPIRATION THE COMPANY SAID RIGHTS WILL BE EXERCISABLE IF A PERSON OR GROUP ANNOUNCES A TENDER OFFER OR PURCHASES FIFTEEN percent OR MORE OF ITS STOCK THE COMPANY CAN REDEEM THE RIGHTS AT A PENNY A RIGHT WITHIN TEN DAYS AFTER A STOCK ACQUISITION OF FIFTEEN percent OR MORE THE RIGHTS ENTITLE STOCKHOLDERS TO PURCHASE NEW SHARES AT A FIFTY percent DISCOUNT IF THE TAKEOVER IS UNAPPROVED STOCKHOLDERS MAY PURCHASE THE ACQUIRING COMPANY'S STOCK AT A FIFTY percent DISCOUNT BEVERLY SAID IT ISSUED THE RIGHTS TO GIVE STOCKHOLDERS MORE BARGAINING POWER IN THE EVENT OF A TAKEOVER BUT SAID IT WAS UNAWARE OF ANY SPECIFIC GROUP INTERESTED IN AN ACQUISITION AMERICANS EARNED MORE AND SPENT MORE IN AUGUST INDICATING THERE STILL IS CONSIDERABLE STRENGTH IN THE ECONOMY DISPOSABLE INCOME ROSE ZERO point FOUR percent IN THE MONTH THE SEVENTH STRAIGHT INCREASE WHILE CONSUMER SPENDING JUMPED ZERO point NINE percent THE LARGEST GAIN SINCE A ONE point THREE percent RISE IN FEBRUARY THE COMMERCE DEPARTMENT REPORTED THESE FIGURES COMBINED WITH LAST WEEK'S REPORTED INCREASES IN DURABLE GOODS ORDERS NEW HOME SALES AND REVISED GROSS DOMESTIC PRODUCT ALL PAINTED A PICTURE OF FASTER GROWTH BUT ECONOMISTS SAID THEY EXPECT THE PACE OF GROWTH TO SLACKEN IN COMING MONTHS ANALYSTS CONCLUDED THAT INFLATIONARY PRESSURE MAY CONTINUE TO GROW BUT AT A MODERATE RATE YES THE ECONOMY IS EXPANDING BUT AS IT DOES WE ARE BOUND TO HIT PRICE PRESSURE SAID CHARLES RENFRO OF ALPHAMETRICS CORPORATION AN ECONOMICS CONSULTING FIRM IN BALA CYNWYD PENNSYLVANIA IT'S A GIVEN WE WILL HAVE SOME INFLATION BUT THE DATA DO NOT SUGGEST A DRAMATIC INCREASE IN PRICES quote A SEPARATE SURVEY OF CONSUMER CONFIDENCE HELPED CONFIRM THIS OUTLOOK THE UNIVERSITY OF MICHIGAN'S CONSUMER SENTIMENT INDEX WAS SAID TO HAVE DROPPED TO EIGHTY THREE point FIVE FROM NINETY ONE point SEVEN THE PRELIMINARY REPORT FOR AUGUST WAS NINETY TWO point TWO THE COMMERCE DEPARTMENT'S PERSONAL CONSUMPTION EXPENDITURE REPORT SHOWED THAT SPENDING ON LONG LASTING ITEMS SUCH AS CARS AND APPLIANCES ROSE FOUR point TWO percent IN AUGUST WHILE SPENDING ON NONDURABLE GOODS SUCH AS FOOD AND FUEL ROSE ZERO point FIVE percent SPENDING ON SERVICES INCREASED ZERO point FOUR percent THE COMBINATION OF RISING INCOMES AND SPENDING MEANT THAT AMERICANS' SAVINGS RATE SAVINGS AS A PERCENTAGE OF DISPOSABLE INCOME FELL TO THREE point EIGHT percent IN AUGUST FROM FOUR point TWO percent THE PREVIOUS MONTH WAGES AND SALARIES THE MOST CLOSELY WATCHED COMPONENT OF INCOME INCREASED SEVEN point NINE BILLION DOLLARS IN AUGUST AFTER A FOURTEEN point FOUR BILLION DOLLAR RISE IN JULY ECONOMISTS HAVE KEPT AN ESPECIALLY CLOSE EYE ON WAGES IN RECENT MONTHS AS A KEY INDICATOR OF POTENTIAL INFLATION BUT MOST AGREED FRIDAY THAT AUGUST'S RISE WASN'T DRAMATIC ANALYSTS SAID THAT THEY DIDN'T EXPECT ANY IMMEDIATE ACTION BY THE FEDERAL RESERVE BOARD ON INTEREST RATES IN LIGHT OF LAST WEEK'S ECONOMIC DATA THE FED'S OPEN MARKET COMMITTEE WHICH MET TUESDAY DECIDED NOT TO RAISE RATES FOR THE TIME BEING BUT THE FED CHAIRMAN BY CUSTOM HAS THE AUTHORITY TO RAISE RATES AT LEAST ONE QUARTER PERCENTAGE POINT BETWEEN MEETINGS WITHOUT A FORMAL COMMITTEE VOTE THE NEXT SCHEDULED MEETING IS NOVEMBER FIFTEENTH AND MANY ANALYSTS SAY THEY EXPECT THE FED TO BOOST RATES FOR THE SIXTH TIME THIS YEAR AT THAT TIME THE CENTRAL BANK DISCLOSED FRIDAY THAT ITS MOST RECENT DECISION TO INCREASE RATES BY ONE HALF PERCENTAGE POINT MADE AT ITS AUGUST SIXTEENTH MEETING WAS UNANIMOUS ACCORDING TO A SUMMARY OF THE MEETING RELEASED FRIDAY MEMBERS OF THE OPEN MARKET COMMITTEE BELIEVED THAT THE RISE IN INTEREST RATES SINCE THE BEGINNING OF THE YEAR HAD HAD SOME RESTRAINING EFFECTS ON INTEREST SENSITIVE EXPENDITURES NOTABLY HOUSING AND PERHAPS TO A LESSER EXTENT SOME CONSUMER DURABLES BUT TO DATE THESE EFFECTS HAD NOT BEEN LARGE THE REPORT ALSO NOTED THAT DESPITE SOME DIFFERING VIEWS THE MEMBERS GENERALLY CONCLUDED THAT THE ECONOMY WAS PROBABLY OPERATING AT A LEVEL THAT WAS CLOSE TO IF NOT ALREADY AT ITS LONG RUN POTENTIAL HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS IT TOOK AN OPEN HOUSE AN OPEN FIELD AND SOME STRONG BAVARIAN BEER BUT A GROUP OF LOCAL FARMERS RECENTLY CAME AWAY FROM A BIOTECHNOLOGY FARM HERE CONVINCED THAT GENETICALLY ENGINEERED CROPS ARE THE WAVE OF THE FUTURE quote I'M FOR PROGRESS SAID JOSEF KREMMETER SIPPING A BREW WITH HIS COLLEAGUES AFTER COMPLETING A SWING AROUND THE FLOURISHING AND HIDDEN FIELD OF TRANSGENIC HERBICIDE RESISTANT CORN THE FARM'S DEVELOPER HOECHST SCHERING AGREVO GMBH COULD DO WITH MORE SUCH THINKING TWO WEEKS AFTER THE EXHIBITION THE FIELD WAS DESTROYED BY VANDALS SETTING BACK THE TEST PROGRAM AT AN ESTIMATED COST OF SIX MILLION DOLLARS TO THE AGROCHEMICAL JOINT VENTURE BETWEEN HOECHST A. G. AND SCHERING A. G. THE AGROCHEMICAL INDUSTRY IS WORKING TO CREATE FERTILE TERRAIN FOR GENETICALLY ENGINEERED CROPS IN EUROPE THE NUMBER OF TESTS HAS GROWN IN RECENT YEARS PARTICULARLY IN FRANCE BRITAIN AND BELGIUM BUT PUBLIC OPPOSITION IS AS ADAMANT AND BUREAUCRATIC OBSTACLES ARE WIDESPREAD TO ISABELLE MEISTER A SWISS GREENPEACE OFFICER GENETIC PLANT ENGINEERING POSES NOTHING LESS THAN AN ENVIRONMENTAL DISASTER THIS IS ECOLOGICAL MADNESS SHE SAID WE WILL DO EVERYTHING TO STOP IT quote SHE FEARS OPEN FIELD TRIALS SUGGESTING THAT MANIPULATED ORGANISMS CAN SPREAD FROM THE DESIGNATED PLANT THREATENING LOCAL FAUNA CAUSING DISEASE AND BRINGING POISON TO WHERE IT HASN'T BEEN BEFORE USING POLITICAL PRESSURE AND OCCASIONAL GUERRILLA TACTICS GREEN OPPONENTS OF GENETIC ENGINEERING IN GERMANY AND SWITZERLAND HAVE CHASED AWAY COMPANIES SUCH AS HOECHST SCHERING AND CIBA GEIGY A. G. FROM OPEN FIELD RESEARCH IN THEIR OWN BACKYARDS MEANWHILE AGROCHEMICAL EXECUTIVES COMPLAIN THAT THE EUROPEAN UNION TENDS TO OVER REGULATE AND IS SUSPICIOUS OF NEW TECHNOLOGIES AND AS A RESULT DISCOURAGES NEW INVESTMENT SUCH ARE THE HURDLES IN THE RACE TO DEVELOP A GLOBAL MARKET THAT ONE INDUSTRY GROUP ESTIMATES COULD BE WORTH SOME FIFTY BILLION DOLLARS BY TWO THOUSAND CREATING ABOUT ONE point SIX MILLION NEW JOBS IN EUROPE ALONE GENETIC RESEARCH MANY PREDICT WILL REVOLUTIONIZE AGRICULTURE THROUGH THE CREATION OF DISEASE RESISTANT AND HIGHER YIELDING PLANTS CIBA GEIGY THE WORLD'S LARGEST AGROCHEMICAL COMPANY ACHIEVED A BREAKTHROUGH LAST MONTH IN THE UNITED KINGDOM WHEN IT HARVESTED THE WORLD'S FIRST GENETICALLY ENGINEERED WHEAT WITH STRONGER RESISTANCE TO DROUGHT AND DISEASE THE U. S. IS THE LEADER IN BIOENGINEERED FARMING AVERAGING MORE OPEN FIELD TESTS EACH YEAR AND BRINGING THE FIRST GENETICALLY ENGINEERED FOODS TO MARKET THE U. S. PRODUCED THE GENETICALLY ENGINEERED HORMONE THAT GETS COWS TO MAKE MORE MILK LIKEWISE IT WAS A U. S. COMPANY THAT FIRST DEVELOPED A TOMATO WITH LONGER SHELF LIFE AND ALLEGEDLY BETTER TASTE FROM A EUROPEAN PERSPECTIVE AMERICA'S STREAMLINED APPROVAL PROCESS PUTS MORE TESTS IN THE PIPELINE AND ATTRACTS COMPANIES SUCH AS SWITZERLAND'S CIBA GEIGY CIBA GEIGY CHIEF EXECUTIVE OFFICER HEINI LIPPUNER SAID THAT IN THE U. S. RISKS ARE KEPT TO A MINIMUM BUT THIS IS DONE WITH COMMON SENSE AND NOT HOSTILE BUREAUCRACY SWITZERLAND MEANWHILE IS SET TO HOLD A REFERENDUM ON WHETHER TO COMPLETELY BAN TESTING ON BIOENGINEERED FARMING THE REFERENDUM MUST BE HELD SOMETIME IN THE NEXT SEVERAL YEARS WITH SUCH A THREAT LOOMING SWISS COMPANIES SUCH AS CIBA GEIGY ALREADY PREFER TO DO THEIR FIELD TRIALS ABROAD WE HOPE THAT THE REFERENDUM WILL BE REJECTED SAID CIBA GEIGY EXECUTIVE BOARD MEMBER FRANCOIS L'EPPLATTENIER quote BUT IF IT ISN'T CIBA WON'T SUFFER WE HAVE A GLOBAL RESEARCH POTENTIAL BUT SWITZERLAND WILL LOSE OUT A EUROPEAN INDUSTRY SPONSORED FORUM THE SENIOR ADVISORY GROUP BIOTECHNOLOGY HAS URGED THE EUROPEAN UNION COMMISSION TO SPEED REGULATORY REFORM LOWER BARRIERS TO INVESTMENT AND PASS FISCAL MEASURES SUPPORTING BIOTECHNOLOGY SO FAR THE COMMISSION HASN'T ACTED BUT THERE ARE SIGNS THAT EUROPE IS MOVING TOWARD DEREGULATION A NINETEEN NINETY THREE E. U. REPORT ON ECONOMIC GROWTH CALLED FOR IMPROVING CONDITIONS FOR BIOTECHNOLOGY REFORMS OF AGRICULTURE REGULATION ALSO ARE PLANNED AND GERMANY WHICH HOLDS THE SIX MONTH E. U. PRESIDENCY HAS MADE SIMPLIFYING THE APPLICATION PROCESS FOR FIELD TRIALS PART OF ITS AGENDA FOR A TRANSGENIC CROP TO COMPLETE THE JOURNEY FROM FIELD TO MARKET IN EUROPE THERE ARE SEVERAL PHASES FIRST PERMISSION MUST BE OBTAINED FROM INDIVIDUAL COUNTRIES FOR FIELD TRIALS WHICH IN THEMSELVES TAKE YEARS TO COMPLETE NEXT SHOULD THE TEST PROVE SUCCESSFUL AN APPLICATION MUST BE MADE TO ENLARGE AND PREPARE THE CROP FOR MARKETING AT THIS STAGE OTHER E. U. COUNTRIES CAN RAISE OBJECTIONS DURING A PERIOD OF SEVERAL MONTHS FINALLY ANOTHER PERMIT IS REQUIRED TO MAKE THE PRODUCT PART OF THE FOOD CHAIN MARIBO SEED COMPANY OF DENMARK IS ABOUT TO APPLY FOR A LICENSE TO MARKET A TRANSGENIC SUGAR BEET IN DENMARK OR THE U. K. BY THE END OF THE CENTURY THE COMPANY HOPES TO HAVE A PRODUCT THAT ALLOWS FARMERS TO USE FEWER HERBICIDES MARIBO'S APPLICATION WILL FOLLOW ONE BY BELGIUM'S PLANT GENETICS SYSTEMS N. V. FOR A LICENSE TO MARKET A GENETICALLY ENGINEERED RAPESEED OIL THAT IS CONSIDERED MORE VIGOROUS THAN EXISTING STRAINS BUT PERHAPS THE FIRST SUCH PRODUCT OF A EUROPEAN COMPANY TO REACH CONSUMERS WILL BE ZENECA GROUP P. L. C.'S GENETICALLY ENGINEERED TOMATOES FOR INDUSTRIAL PROCESSING WHICH COULD BE SOLD IN THE U. S. IN NINETEEN NINETY SIX AND SHORTLY AFTERWARD IN EUROPE IN ITALY WHERE TOMATOES ARE THE FOURTH MOST IMPORTANT CROP COMPANIES ARE ALSO TESTING A TRANSGENIC BREED SAYS CELESTINO SPALLA AN OFFICIAL RESPONSIBLE FOR BIOTECHNOLOGY ISSUES AT THE ITALIAN CHEMICAL INDUSTRY ASSOCIATION WE ARE AT THE BEGINNING OF THE DISCUSSION ON THE ISSUE OUR AIM IS TO HAVE THE WELCOMING APPROACH OF THE U. S. BUT AS MORE PRODUCTS ARE COMMERCIALIZED THE BATTLE OVER PLANT MANIPULATION IS EXPECTED TO INTENSIFY STEVE EMMOTT OF GENETIC FORUM A U. K. PUBLIC INTEREST GROUP LASHES OUT AT THE AMERICAN TRANSGENIC TOMATO DEVELOPED BY CALGENE INCORPORATED OF DAVIS CALIFORNIA WHICH HAS YET TO RECEIVE ANY PERMIT IN EUROPE THIS IS A FOOD TREND WHICH WE DON'T LIKE IT FAKES FRESHNESS CONSUMERS ARE GETTING A DRESSED UP OLD TOMATO quote ACCORDING TO THE E. U.'S EUROBAROMETER SURVEY OF PUBLIC OPINION SUPPORT FOR GENETIC ENGINEERING IS WEAKEST AMONG GERMANS WHO ARE HIGHLY SENSITIVE TO POSSIBLE RISKS AND DON'T TRUST PUBLIC AUTHORITIES TO TELL THE TRUTH ABOUT BIOTECHNOLOGY slash GENETIC ENGINEERING OPEN FIELD TRIALS BY AGREVO THIS SUMMER IN GERMANY WERE A FIRST SUCH ATTEMPT THERE BY AN AGROCHEMICAL LEADER HOECHST CONDUCTED THREE OTHER OPEN TRIALS IN GERMANY THIS SUMMER THAT WENT UNDAMAGED WE DON'T WANT TO PUT UP A BIG FENCE AND HAVE GUARDS SAID BERNHARD BESOLD THE AGREVO OFFICIAL IN CHARGE OF THE GERSTFHOFEN TRIAL quote WE WANT GENETICALLY MODIFIED PLANTS TO BE ACCEPTED AS NORMAL A GENERALLY FAVORABLE U. K. CLIMATE WAS TARNISHED RECENTLY IN OXFORDSHIRE WHERE FIELD TRIALS WERE HELD FOR PLANTS THAT HAD BEEN GENETICALLY ENGINEERED WITH A TOXIC SCORPION VIRUS TARGETED AT KILLING HARMFUL CATERPILLARS DESPITE CLAIMS BY THE U. K.'S INSTITUTE OF VIROLOGY WHICH INITIATED THE TRIALS THAT NO HARM WOULD BE DONE TO OTHER SPECIES MANY PEOPLE LIVING IN THE AREA WERE UPSET THIS TRIAL IS NEAR WOODS WHICH ARE UNIQUE SAID AREA RESIDENT JOYCE SMITH I LOVE THOSE WOODS WHAT IF THE VIRUS KILLS THE BUTTERFLIES WHAT ABOUT THE BIRDS quote GEORGE MCGAVIN A LECTURER IN ZOOLOGY AT OXFORD'S TRINITY COLLEGE ALSO PROTESTS ARGUING THAT THE VIRUS HAS A LARGE HOST RANGE AND THAT THERE IS TOO MUCH UNCERTAINTY ABOUT THE ORGANISM'S BEHAVIOR OUTSIDE THE LABORATORY AS GENETIC FORUM'S MR. EMMOTT SUGGESTS THE SCORPION INCIDENT WOKE A LOT OF PEOPLE UP TO THE FACT THAT THERE ARE FUNNY THINGS GOING ON PORT AU PRINCE HAITI PRO ARISTIDE FORCES SCORED A POLITICAL AND TACTICAL VICTORY BY KEEPING MASS DEMONSTRATIONS HERE LARGELY PEACEFUL THEIR RELATIVE RESTRAINT INCREASES THE PRESSURE ON THE U. S. TO CRACK DOWN ON GUN AND MACHETE WIELDING MEMBERS OF PARAMILITARY GROUPS THAT ATTACKED UNARMED CIVILIANS ON SUNDAY U. S. FORCES DETAINED FIVE LEADING PARAMILITARY LEADERS INCLUDING ROMEO HALLOUN A CLOSE ADVISER TO LIEUTENANT GENERAL RAOUL CEDRAS MR. HALLOUN WAS ASSOCIATED WITH A GROUP OF GUN WIELDING PARAMILITARY MEMBERS WHO DRESSED IN BLACK AND WERE POPULARLY KNOWN IN HAITI AS THE NINJAS THE U. S. IS EXPECTED TO MOVE AGAINST THE FRONT FOR THE ADVANCEMENT AND PROGRESS OF HAITI KNOWN AS FRAPH A BRUTAL RIGHT WING GROUP THAT'S BELIEVED TO HAVE CARRIED OUT SOME OF THE RECENT KILLINGS IN ONE SIGN OF A TOUGHER U. S. STANCE U. S. SOLDIERS RAIDED SEVEN REPORTED ARMS CACHES SATURDAY THEY RECOVERED WEAPONS FROM JUST ONE SITE THE HAITIAN NAVY'S BASE OUTSIDE THE CAPITAL SEARCHES CONTINUED SUNDAY INCLUDING A SEARCH OF A RESIDENCE IN A WEALTHY PETIONVILLE SUBURB ADVISERS TO EXILED PRESIDENT JEAN BERTRAND ARISTIDE WHO IS DUE TO RETURN AROUND OCTOBER FIFTEENTH SAY THEY HAVE BEEN ASSURED BY BRIGADIER GENERAL HENRY SHELTON THE TOP U. S. MILITARY OFFICER IN HAITI THAT U. S. FORCES WILL MOVE TO DISARM THE PARAMILITARY GROUPS THEY'VE GOT TO FIND THE WEAPONS AND GET THEM OUT OF THE HANDS OF PEOPLE WHO ARE CREATING TERRORISM IN THE COUNTRY SAYS IRA KURZBAN A MIAMI LAWYER WHO IS IN HAITI WORKING ON MR. ARISTIDE'S TRANSITION TO POWER MR. KURZBAN SAID HE HOPED THE U. S. WOULD KEEP ITS COMMITMENT THE U. S. POSITION IS THAT IT WANTED TO HELP THE HAITIAN POLICE AND MILITARY WHICH WOULD TAKE THE LEAD IN DEFANGING THE BRUTAL PARAMILITARY GROUPS HOWEVER THE HAITIAN AUTHORITIES HAVE OFTEN BEEN EITHER UNABLE OR UNWILLING TO BLUNT THE GROUPS' PUNCH STILL UNCLEAR IS THE EXTENT TO WHICH THE U. S. TROOPS WILL MOVE TO FILL THE VACUUM HIGHLIGHTING WHAT A MINEFIELD HAITI IS FOR THE CLINTON ADMINISTRATION A GROUP OF U. S. LAWMAKERS TOURING THE HAITIAN CAPITAL OVER THE WEEKEND FRETTED ABOUT ANY EXPANSION OF THE U. S. ROLE HERE quote YOU GET TOO INVOLVED AND THERE'S A BACKLASH WARNED REPRESENTATIVE JOHN P. MURTHA D. PENNSYLVANIA CHAIRMAN OF THE DEFENSE APPROPRIATIONS SUBCOMMITTEE IN THE HOUSE HE AND OTHER LAWMAKERS EXPRESSED CONCERNS THAT THE U. S. COULD FIND ITSELF IN A SITUATION SIMILAR TO SOMALIA WHERE U. S. SOLDIERS BECAME THE TARGETS OF A LOCAL FACTION THE U. S. HAD SET OUT TO DECAPITATE NOTWITHSTANDING THE GROWING APPREHENSION OVER THE HAITI POLICY CONGRESS MAY BE RELUCTANT TO DEMAND A WITHDRAWAL SENATOR CHRISTOPHER DODD D. CONNECTICUT WHO RETURNED SUNDAY FROM A QUICK CONGRESSIONAL TRIP THERE SAID THAT GENERAL SHELTON HAD TOLD HIM THAT IF CONGRESS WERE TO SET A SPECIFIC DATE BY WHICH U. S. FORCES WOULD HAVE TO BE OUT OF HAITI YOU JEOPARDIZE THE LIVES OF MY MEN SENATOR DODD SPEAKING ON C. B. S.'S FACE THE NATION PROGRAM YESTERDAY ADDED THAT THE SIX MEMBERS OF HIS CONGRESSIONAL DELEGATION AGREED THAT IF YOU PUT A DATE CERTAIN quote ON WHEN U. S. TROOPS MUST LEAVE YOU'RE LOOKING FOR TROUBLE ON SUNDAY FRAPH MEMBERS APPEARED NONCHALANT ABOUT THE PROSPECTS OF A U. S. CRACKDOWN ABOUT THREE DOZEN PLAYED DOMINOES AND CARDS IN FRONT OF THEIR DOWNTOWN HEADQUARTERS THE SAME SITE WHERE THEY OPENED FIRE ON CIVILIANS FRIDAY KILLING SEVERAL PEACEFUL DEMONSTRATORS WE ARE COOL SAID FRAPH MEMBER JACQUES LOUIS PLUNKING DOWN A NINE OF SPADES quote ANYBODY WHO COMES HERE TO FIGHT WE'RE GOING TO PUT HIM IN THE CEMETERY MR. LOUIS SAID HE HAS NO PROBLEMS WITH AMERICANS IN FACT HE SAID U. S. SOLDIERS RIDING BY ON THEIR HUMVEE ARMORED VEHICLES WAVE CHEERFULLY TO FRAPH MEMBERS WHO WAVE BACK ON FRIDAY THOSE HUMVEES ALONG WITH TANKS AND OTHER ARMORED VEHICLES STAGED A MASSIVE SHOW OF PRESENCE quote WITH THE INTENTION OF CONTAINING THE PRO ARISTIDE DEMONSTRATION TO DOWNTOWN AND ADDRESSING WHAT APPEARS TO BE THE U. S.'S PRINCIPAL FEAR THAT MOBS OF PRESIDENT ARISTIDE'S SUPPORTERS WILL GO ON A RAMPAGE AGAINST WEALTHY HAITIANS AND SUPPORTERS OF THE MILITARY REGIME OUR MISSION TODAY WAS TO CONTAIN THE CROWD AS THEY MOVED INLAND SAID COLONEL BARRY WILLEY ON FRIDAY OUR INTENTION ALL ALONG WAS TO PROVIDE A CORDON BUT OTHER THAN A FEW INCIDENTS OF LOOTING ALONG THE PORT AREA NEXT TO THE CITY'S MOST SQUALID SLUMS THE ONLY VIOLENCE CAME IN THE FORM OF PARAMILITARY ATTACKS ON SATURDAY A VANLOAD OF GUNMEN BELIEVED BY ONLOOKERS TO BE MEMBERS OF FRAPH OPENED FIRE INTO A CROWD OF PEOPLE WHO APPEARED POISED TO LOOT A WAREHOUSE NEAR CITE SOLEIL PORT AU PRINCE'S POOREST SLUM SEVERAL CHILDREN WERE WOUNDED PARADOXICALLY SOME ANALYSTS BELIEVE THAT THE U. S.'S RELUCTANCE TO EITHER ASSUME POLICE DUTIES OR DISARM FRAPH MAY PROVIDE A BOON TO THE PARAMILITARY GROUP BY FILLING THE POLICE VACUUM FRAPH COULD VERY WELL GAIN STRENGTH AND POPULARITY AMONG HAITI'S BUSINESS ELITE WHO ARE TERRIFIED THAT THEIR HOMES MIGHT BE RANSACKED BY THE MOBS quote THE MOBS ARE WAITING FOR FRAPH TO DISAPPEAR SO THEY CAN LOOT AND BURN SAID EMMANUEL TOTO CONSTANT THE HEAD OF FRAPH I REPRESENT THE REST OF THE POPULATION quote ARISTIDE SUPPORTERS SAY THEY TOO WOULD LIKE TO SEE THE U. S. CRACK DOWN ON LOOTERS BUT THEY MAINTAIN THAT FEARS OF A LOOTING RAMPAGE ARE WILDLY EXAGGERATED AND MISREPRESENT HAITI'S REALITY TO THE U. S. PUBLIC AND POLICY MAKERS K. THE THIRD COMMUNICATIONS CORPORATION COMPLETED THE ACQUISITION OF CHANNEL ONE AND OTHER RELATED EDUCATIONAL PROGRAMMING PROPERTIES FROM WHITTLE COMMUNICATIONS L. P. FOR ABOUT TWO HUNDRED FIFTY MILLION DOLLARS CHANNEL ONE IS THE CONTROVERSIAL ADVERTISER SUPPORTED DAILY NEWSCAST PIPED INTO ALMOST TWELVE THOUSAND SECONDARY SCHOOLS NATIONWIDE WHILE TERMS OF THE TRANSACTION THAT WAS FIRST ANNOUNCED IN AUGUST WEREN'T DISCLOSED PEOPLE CLOSE TO THE NEGOTIATIONS SAID K. THE THIRD IS PAYING NO MORE THAN TWO HUNDRED FIFTY MILLION DOLLARS THAT IS SIGNIFICANTLY LESS THAN THE CLOSE TO THREE HUNDRED MILLION DOLLAR PRICE TAG PEOPLE CLOSE TO THE DEAL PUT ON THE TRANSACTION WHEN IT WAS FIRST ANNOUNCED CHANNEL ONE HAD REVENUE OF MORE THAN SEVENTY MILLION DOLLARS IN ITS MOST RECENT FISCAL YEAR ENDED IN JUNE AND IS BELIEVED TO HAVE OPERATING PROFIT OF ABOUT TWENTY MILLION DOLLARS K. THE THIRD EXECUTIVES WOULDN'T COMMENT ON THE PRICE BUT SAID IN A STATEMENT THAT THE ACQUISITION STRENGTHENS K. THE THIRD'S POSITION AS A PROVIDER OF SUPPLEMENTARY EDUCATIONAL MATERIALS FOR STUDENTS AND TEACHERS A COMPANY SPOKESMAN SAID THAT DESPITE PROTESTS FROM SOME EDUCATION GROUPS K. THE THIRD CONSIDERS CHANNEL ONE'S NEWS PROGRAM TERRIFIC AND IS CURRENTLY IN TALKS WITH MAJOR BROADCAST NETWORKS ABOUT quote SHARING SOME OF ITS NEWS GATHERING ABILITIES AND PROGRAMMING K. THE THIRD IS A GROWING MEDIA COMPANY WITH A HEAVY STAKE IN EDUCATION RELATED PROPERTIES ABOUT FORTY percent OF ITS ANNUAL REVENUE OF ABOUT NINE HUNDRED MILLION DOLLARS COMES FROM SUCH PRODUCTS AS THE WEEKLY READER STUDENT NEWSPAPER AND FUNK AND WAGNALL'S NEW ENCYCLOPEDIA K. THE THIRD IS CONTROLLED BY BUYOUT FIRM KOHLBERG KRAVIS ROBERTS and COMPANY THE SALE OF CHANNEL ONE IS EFFECTIVELY THE END OF ONCE HIGH FLYING WHITTLE COMMUNICATIONS THE MEDIA CONCERN THAT FOUNDER CHRISTOPHER WHITTLE ONCE PROMISED TO TURN INTO A MEDIA GIANT CLOSELY HELD WHITTLE ALREADY HAD SHUT DOWN MOST OF ITS OTHER MAJOR PRINT AND TELEVISION PROJECTS WHITTLE IS IN THE PROCESS OF FINDING BUYERS FOR SAMPLECO WHICH DISTRIBUTES PRODUCT SAMPLES ON COLLEGE CAMPUSES AND PHYSICIAN'S WEEKLY WHICH CREATES AD SUPPORTED NEWS POSTERS FOR HOSPITALS MR. WHITTLE WILL HAVE A LIMITED ROLE IN THE SCHOOL T. V. NETWORK HE CREATED IN NINETEEN NINETY K. THE THIRD SAID MR. WHITTLE WILL HOLD THE TITLE OF CHAIRMAN OF CHANNEL ONE WHERE HE WILL WORK ON A RETAINER IN THE AREA OF NEW PRODUCT DEVELOPMENT BUT WON'T BE INVOLVED IN DAY TO DAY MANAGEMENT IN AN INTERVIEW YESTERDAY MR. WHITTLE SAID PROCEEDS FROM THE SALE OF CHANNEL ONE WILL GO TO RETIRING ALL OF THE COMPANY'S DEBT A FIGURE BELIEVED TO BE CLOSE TO ONE HUNDRED MILLION DOLLARS THE REMAINING PROCEEDS WILL GO TO BOTH WHITTLE'S GENERAL PARTNERS AND COMPANY EXECUTIVES WHO ARE LIMITED PARTNERS WHITTLE GENERAL PARTNERS INCLUDE TIME WARNER INCORPORATED AND PHILIPS ELECTRONICS N. V. WHICH EACH HOLD A THIRTY THREE point FOUR percent STAKE AND ASSOCIATED NEWSPAPER HOLDINGS P. L. C. WITH TWENTY TWO point THREE percent MR. WHITTLE AND OTHER LIMITED PARTNERS WHO ARE COMPANY EXECUTIVES HOLD TEN point NINE percent HE ADDED THAT THE GENERAL PARTNERSHIP WILL DISSOLVE ONCE FURTHER PROCEEDS ARE RECEIVED IN THE NEXT YEAR OR TWO FROM SELLING ITS HEADQUARTERS AND OTHER PROPERTIES PHILIP MORRIS COMPANIES CONFIRMED IT IS NEGOTIATING TO SELL ITS KRAFT FOODSERVICE BUSINESS THIS NEWSPAPER REPORTED FRIDAY THAT PHILIP MORRIS IS IN TALKS TO SELL THE FOOD SERVICE BUSINESS OF ITS KRAFT GENERAL FOODS INCORPORATED SUBSIDIARY FOR SOMEWHERE BETWEEN SIX HUNDRED MILLION DOLLARS AND EIGHT HUNDRED MILLION DOLLARS KRAFT FOODSERVICE SELLS INDUSTRIAL SIZE PACKAGES OF KRAFT PRODUCTS INCLUDING CHEESE AND MAYONNAISE TO RESTAURANTS AND CAFETERIAS IN A NEWS RELEASE THE COMPANY SAID A NUMBER OF PARTIES HAVE EXPRESSED INTEREST IN AN ACQUISITION AND THAT IT IS DISCUSSING THE POSSIBLE SALE WITH ONE SUCH PARTY quote FLEMING COMPANIES PLANS TO CLOSE A DISTRIBUTION CENTER IN BLOOMING PRAIRIE MINNESOTA AS PART OF A CONSOLIDATION OF SCRIVNER INCORPORATED WHICH IT ACQUIRED IN JULY THE WHOLESALE FOOD DISTRIBUTOR SAID IT WILL TRANSFER THE OPERATION TO WISCONSIN AND LAY OFF FIFTY SIX EMPLOYEES LAWYERS FOR THE FORMER ARKANSAS STATE EMPLOYEE WHO SUED PRESIDENT CLINTON FOR SEXUAL HARASSMENT CALLED ON THE PRESIDENT TO SETTLE THE CASE BY ISSUING A CONCILIATORY STATEMENT PAULA JONES'S ATTORNEYS PROPOSED THAT THE PRESIDENT PUBLICLY STATE THAT HE DOESN'T DENY MEETING HER IN A LITTLE ROCK HOTEL ROOM IN NINETEEN NINETY ONE AND THAT SHE DIDN'T ENGAGE IN ANY IMPROPER OR SEXUAL CONDUCT IN THE SUIT FILED IN MAY MS. JONES ALLEGED THAT PRESIDENT CLINTON HAD MADE SEXUAL ADVANCES TOWARD HER WHICH HE DENIES MS. JONES'S LAWYERS GILBERT DAVIS AND JOSEPH CAMMARATA ALSO ASKED THAT THE PRESIDENT STATE THAT HE BELIEVES HER TO BE A TRUTHFUL AND MORAL PERSON THE PRESIDENT'S LAWYER ROBERT BENNETT COULDN'T BE REACHED FOR COMMENT ASKED ABOUT THE OFFER WHITE HOUSE CHIEF OF STAFF LEON PANETTA SAID THE MATTER ISN'T BEING HANDLED THROUGH THE WHITE HOUSE BUT RATHER BY THE PRESIDENT'S LAWYERS PRESIDENT CLINTON MR. PANETTA SAID ON C. B. S. T. V.'S FACE THE NATION quote HAS MADE VERY CLEAR THAT HE HAS NOT ENGAGED IN ANY ILLEGAL CONDUCT WHATSOEVER AND I THINK THAT WILL ULTIMATELY PROVE TO BE THE CASE IN AN INTERVIEW MR. CAMMARATA SAID THAT THE PROPOSED SIX SENTENCE STATEMENT IS VERY CLOSE TO ANOTHER THAT WAS SUGGESTED BY MR. BENNETT WHEN THE PARTIES NEGOTIATED BEFORE THE SUIT WAS FILED IN THAT STATEMENT ACCORDING TO DOCUMENTS PROVIDED BY MR. CAMMARATA MR. BENNETT SUGGESTED THAT PRESIDENT CLINTON SAY THAT HE HAD NO RECOLLECTION OF MEETING quote MS. JONES BUT THAT HE DIDN'T CHALLENGE HER CLAIM THAT WE MET THERE AND I MAY VERY WELL HAVE MET HER IN THE PAST MS. JONES'S PROPOSAL ON SATURDAY WAS PROMPTED BY A PROFILE OF MR. BENNETT IN THE NEW YORK TIMES MAGAZINE IN WHICH HE WAS QUOTED SAYING THAT THE EARLIER NEGOTIATIONS FELL THROUGH BECAUSE MS. JONES'S REPRESENTATIVES WOULDN'T AGREE TO INCLUDE THE PRESIDENT'S ADAMANT DENIAL IN THE STATEMENT MR. CAMMARATA SAID THAT SUCH LANGUAGE WAS NEVER DISCUSSED AND THAT THE NEGOTIATIONS FAILED AFTER THE WHITE HOUSE MADE INCORRECT STATEMENTS ABOUT WHY THE FILING OF THE SUIT WAS BRIEFLY DELAYED DOCTOR PEPPER slash SEVEN UP COMPANIES WILL BOOST NINETEEN NINETY FOUR SALES AT LEAST SEVEN percent TO MORE THAN SEVEN HUNDRED SIXTY MILLION DOLLARS JOHN R. ALBERS CHAIRMAN AND CHIEF EXECUTIVE SAID MR. ALBERS ALSO SAID HE ISN'T quote UNCOMFORTABLE WITH ANALYSTS' EARNINGS ESTIMATES OF ONE DOLLAR AND FIFTEEN CENTS TO ONE DOLLAR AND SEVENTEEN CENTS A SHARE FOR THE YEAR IN NINETEEN NINETY THREE DOCTOR PEPPER slash SEVEN UP HAD SALES OF SEVEN HUNDRED SEVEN point FOUR MILLION DOLLARS AND EARNINGS OF SEVENTY SEVEN point NINE MILLION DOLLARS OR ONE DOLLAR AND TWENTY ONE CENTS A SHARE AFTER A SPECIAL CHARGE OF SIXTEEN point TWO MILLION DOLLARS LINKED TO EARLY RETIREMENT OF DEBT DOCTOR PEPPER slash SEVEN UP WILL BE SIGNING JOINT VENTURE AGREEMENTS OR LICENSING MASTER BOTTLERS IN SEVERAL NEW OVERSEAS MARKETS IN COMING MONTHS MR. ALBERS SAID IN AN INTERVIEW AT A BOTTLERS MEETING HERE I'D BE VERY DISAPPOINTED IF WE DON'T MAKE A MAJOR ANNOUNCEMENT OR TWO BY THE END OF THE YEAR HE SAID THE COMPANY EXPECTS TO EXPAND INTO MEXICO SOUTH AMERICA EASTERN EUROPE AND OTHER MARKETS HE SAID DOCTOR PEPPER slash SEVEN UP BASED IN DALLAS ALSO EXPECTS TO REDUCE ITS EIGHT HUNDRED THIRTY MILLION DOLLAR DEBT BY ONE HUNDRED FIFTY MILLION DOLLARS NEXT YEAR MR. ALBERS SAID HE IS COMFORTABLE WITH ANALYSTS' PROJECTIONS THAT THE COMPANY WILL BE OUT OF DEBT IN FOUR TO FIVE YEARS THE MUCH DISCUSSED PROSPECT OF TAKEOVER OF THE COMPANY BY CADBURY SCHWEPPES P. L. C. ISN'T IN THE CARDS CURRENTLY MR. ALBERS SAID WE DON'T HAVE ANYTHING ON THE BOARDS TODAY quote HE SAID WE MIGHT HAVE SOMETHING OVERSEAS WITH THEM BUT WE'VE JUST NOT FOUND COMMON GROUND TO WORK ON AT THIS TIME MR. ALBERS SAID HE SEES GROWTH IN THE SOFT DRINK MARKET SLOWING NEXT YEAR TO TWO percent HE SEES SALES OF TEAS AND FRUIT JUICES BACKING OFF SIGNIFICANTLY NEXT YEAR INDUSTRY COSTS FOR PACKAGING HE ADDED WILL quote SIGNIFICANTLY INCREASE FOR SUCH ITEMS AS RESIN AND ALUMINUM THAT WILL SPUR AN INDUSTRY PRICE INCREASE HE SAID THAT COULD BE AS MUCH AS FIVE percent PRICES FELL ONE percent TO TWO percent THIS YEAR HE SAID MR. ALBERS PROJECTED THAT DOCTOR PEPPER slash SEVEN UP SALES WILL GROW AT TWICE THE RATE OF THE INDUSTRY A PROJECTION THAT HE CALLED CONSERVATIVE THE COMPANY AND ITS BOTTLERS WILL BOOST MEDIA EXPENDITURES TO ABOUT SEVENTY MILLION DOLLARS NEXT YEAR FROM SIXTY SEVEN MILLION DOLLARS IN NINETEEN NINETY FOUR WILLIAM BILLY quote MORRIS THE THIRD IS TOURING HIS NAMESAKE MORRIS MUSEUM HERE WHICH IS THE CENTERPIECE OF THE RIVERFRONT OFFICE BUILDING HE HELPED DEVELOP WHICH IS ACROSS FROM THE RADISSON HOTEL HE HELPED FINANCE WHICH IS ALL LOCATED IN THE DOWNTOWN CONVENTION CENTER HE REVIVED ON ITS DEATHBED AS HE MOVES THROUGH THE MUSEUM HOME TO ONE OF THE WORLD'S LARGEST COLLECTIONS OF SOUTHERN U. S. ART AND THROUGH THE STREETS OF AUGUSTA HE IS STOPPED EVERY FEW FEET HEY BILLY MORNIN' MR. MORRIS A CASUALLY DRESSED ACQUAINTANCE THROWS HER ARMS AROUND HIM quote CONGRATULATIONS ON THE ACQUISITION SHE GUSHES REFERRING TO HIS TWO HUNDRED SEVENTY FIVE MILLION DOLLAR AGREEMENT OVER THE SUMMER TO BUY STAUFFER COMMUNICATIONS INCORPORATED A COLLECTION OF TWENTY DAILY NEWSPAPERS AND ELEVEN TELEVISION AND RADIO STATIONS A WIRY TACITURN MAN PARTIAL TO BROAD BRIMMED HATS MR. MORRIS ISN'T AUGUSTA'S MOST FAMOUS SON A DISTINCTION THAT MIGHT GO TO SOUL SINGER JAMES BROWN RATHER HE IS KNOWN BEST IN THIS TOWN IN GEORGIA AND INCREASINGLY IN THE NATION'S NEWSPAPER BUSINESS FOR WHAT HE WIELDS GOOD OLD FASHIONED IN YOUR FACE CLOUT BILLY MORRIS IS A MODERN DAY MEDIA BARON A SMALLER SCALE THROWBACK TO THE LIKES OF JOSEPH PULITZER AND WILLIAM RANDOLPH HEARST OWNER OF A STRING OF PUBLICATIONS STRETCHING FROM FLORIDA TO ALASKA THE SIXTY YEAR OLD PUBLISHER UNABASHEDLY USES HIS NEWSPAPERS AND THE WEALTH THEY HAVE BROUGHT HIM TO PURSUE HIS OWN CONSERVATIVE CHRISTIAN AGENDA POLITICIANS WHO FAIL TO SEE THE WISDOM IN SHARING HIS VIEWS FALL QUICKLY FROM GRACE IN HIS PAPERS' EDITORIALS AND OFTEN FROM OFFICE IN NOVEMBER WHILE HIS NEWSPAPER CHAIN CURRENTLY RANKS AS THE COUNTRY'S EIGHTEENTH LARGEST FAR BEHIND LEADERS LIKE GANNETT COMPANY AND KNIGHT RIDDER INCORPORATED HIS POWER IN THE SMALL CITIES HIS PAPERS DOMINATE IS OUTSIZED HIS AMBITIONS ARE EVEN BIGGER HIS PURCHASE OF STAUFFER A KANSAS BASED CHAIN WOULD INCREASE THE DAILY CIRCULATION HE CONTROLS BY FIFTY percent IN ONE SHOT HE ROUTINELY OUTBIDS THE BIG BOYS OF PUBLISHING BY ENORMOUS SUMS IN NINETEEN EIGHTY TWO HE ASTONISHED THE INDUSTRY BY PAYING TWO HUNDRED ELEVEN MILLION DOLLARS FOR JACKSONVILLE'S FLORIDA TIMES UNION TOPPING BY MORE THAN THIRTY FIVE MILLION DOLLARS THE BIDS OF MUCH LARGER RIVALS INCLUDING GANNETT CAPITAL CITIES AND COX ENTERPRISES INCORPORATED BILLY HAS ALWAYS HAD A BURNING DESIRE TO BE IN CONTROL AND BE THE BIGGEST SAYS YOUNGER BROTHER AND SOMETIME RIVAL CHARLES MORRIS WHO CONTROLS A SMALLER BROADCAST AND PUBLISHING FIRM IN SAVANNAH GEORGIA AND WHEN BILLY DECIDES HE WANTS SOMETHING HE MAKES SURE HE GETS IT quote MR. MORRIS'S BURGEONING EMPIRE BUILT INTENTIONALLY OF MIDSIZE NEWSPAPERS BELIES A COMMON PERCEPTION THAT LOCAL NEWSPAPERS ARE A DECLINING BREED HIS REASONING IS SIMPLE READERS ARE MORE INTERESTED IN OBITUARIES AND WEDDINGS THAN IN TESTING FANCY DATA SERVICES AND ANALYSTS SAY THAT NEWSPAPERS IN THOSE MARKETS FACE LITTLE COMPETITION FROM LOCAL T. V. AND RADIO OR OTHER PRINT MEDIA YET MR. MORRIS'S RAPID EXPANSION CARRIES PLENTY OF RISK MORE THAN HALF OF THE DAILY PAPERS ACQUIRED THROUGH STAUFFER ARE IN SMALL TOWNS SOME IN HARD HIT AGRICULTURAL COMMUNITIES AND HAVE DECLINING CIRCULATION NOTES JOHN MORTON AN ANALYST WITH LYNCH JONES and RYAN IN WASHINGTON SMALL TOWN NEWSPAPERING HAS GOTTEN A LOT TOUGHER THAN IT USED TO BE BECAUSE THE BIG DISCOUNTERS LIKE WAL MART HAVE DRIVEN THE LITTLE RETAILERS OUT OF BUSINESS MR. MORTON SAYS AND THE LITTLE RETAILERS ARE OF COURSE ADVERTISERS MOREOVER MR. MORRIS FINANCES MOST OF HIS MAJOR ACQUISITIONS WITH DEBT WHICH COULD MAKE HIM VULNERABLE IN A DOWNTURN HE WON'T DISCLOSE HIS DEBT LOAD BUT SAYS HE IS quote VERY COMFORTABLE WITH IT AND ADDS IF IT HADN'T BEEN FOR DEBT I WOULDN'T BE WHERE I AM TODAY REFUSING TO DWELL ON THE DOWNSIDE MR. MORRIS WHOSE FAMILY FORTUNE IS ESTIMATED AT FOUR HUNDRED MILLION DOLLARS HAS CREATED A LIFESTYLE BEFITTING A BUDDING CHARLES FOSTER KANE WHILE HE STILL LIVES MOST OF THE TIME IN THE SAME FOUR BEDROOM HOUSE HE BUILT HERE THIRTY THREE YEARS AGO HE ALSO OWNS TWO PLANTATIONS ONE DESIGNED EXPRESSLY FOR QUARTER HORSES HIS PASSION THERE ARE MORNINGS SPENT GOLFING AT THE AUGUSTA NATIONAL COUNTRY CLUB WITH THE REVEREND BILLY GRAHAM OR SENATOR SAM NUNN THERE IS SALMON FISHING IN ALASKA AND QUAIL HUNTING ON ONE OF THE PLANTATIONS THERE ARE CUTTING HORSE CONTESTS IN WHICH MR. MORRIS AN EXPERT RIDER COMPETES THEN THERE IS HIS QUICKSILVER PERSONALITY CAPABLE OF RUNNING ROUGHSHOD OVER OPPONENTS ONE MINUTE AND GATHERING HIS THREE CHILDREN TO HIS SIDE FOR PRAYER THE NEXT DEEPLY RELIGIOUS HE HOLDS INVOCATIONS BEFORE BOARD MEETINGS YET WHEN HIS OWN BROTHER AND MOTHER DIDN'T AGREE WITH HIS STRATEGY HE WENT BEHIND THEIR BACKS TO WREST AWAY CONTROL OF THE COMPANY THERE ARE SOME PEOPLE IN THIS WORLD WHO JUST WANT TO CONTROL OTHER PEOPLE quote SAYS CHARLES MORRIS HIS BROTHER I THINK BILLY IS ONE OF THOSE PEOPLE THE MORRIS FAMILY STARTED OUT IN THE NEWSPAPER BUSINESS WHEN BILLY'S FATHER WILLIAM MORRIS JUNIOR JOINED THE AUGUSTA CHRONICLE IN NINETEEN TWENTY NINE AS A BOOKKEEPER SIXTEEN YEARS LATER THE ELDER MORRIS ALONG WITH A PARTNER BOUGHT THE PAPER AND PUT HIS TWO SONS TO WORK BILLY AT AGE TWELVE DELIVERED PAPERS ON HORSEBACK TO RURAL SUBSCRIBERS FAMILY DISCUSSIONS FREQUENTLY TURNED TO BUSINESS BILLY'S FATHER HAD BIG DREAMS STARTING WITH HIS YEARNING TO OWN THE JACKSONVILLE DAILIES BUT THEY WERE CUT SHORT WHEN IN NINETEEN FIFTY SIX HE SUFFERED A STROKE AT THE AGE OF FIFTY TWO BILLY JUST TWENTY ONE AND A FRESHLY MINTED COLLEGE GRADUATE STEPPED IN TO LEAD THE COMPANY IN PLACE OF HIS ILL FATHER HE WAS DETERMINED TO FINISH WHAT HIS FATHER HAD STARTED SAYS MR. MORRIS I WANTED TO BUILD A NATIONWIDE MEDIA COMPANY HE AND HIS BROTHER BOUGHT FOUR GEORGIA DAILIES BUT THEY BICKERED OVER MATTERS OF BOTH STYLE AND STRATEGY CHARLES MORRIS WAS KNOWN AS AN EASYGOING MANAGER WHO FIRMLY BELIEVED THAT LOCAL NEWSPAPERS SHOULD MAKE INDEPENDENT EDITORIAL AND BUSINESS DECISIONS BIG BROTHER BILLY DEMANDED THAT BUSINESS DECISIONS BE CENTRALIZED IN AUGUSTA SOON THE FRICTION BROKE INTO THE OPEN CHARLES INFURIATED BECAUSE HE SAYS BILLY BEGAN TELLING HIM HOW TO DO HIS JOB TRAVELED TO AUGUSTA ONE EVENING IN THE SPRING OF NINETEEN SIXTY SEVEN TO ASK HIS AILING FATHER FOR MORE FREEDOM FROM BILLY BUT EARLY THE NEXT MORNING HIS FATHER DIED LEAVING HIS SONS TO BATTLE OUT THEIR DIFFERENCES THE FIGHT WAS OVER ALMOST BEFORE IT BEGAN BILLY QUIETLY BOUGHT A STAKE IN THE FAMILY COMPANY THAT HAD BEEN HELD BY AN INSURANCE COMPANY INCREASING HIS OWNERSHIP STAKE WHILE DILUTING THAT OF THE OTHER FAMILY MEMBERS WHO SUPPORTED CHARLES HIS MOTHER SISTER AND BROTHER PROMPTLY SUED CHARGING BILLY WITH BREACH OF FIDUCIARY DUTY BILLY COUNTERSUED THE MATTER WAS SETTLED WITH BILLY BUYING OUT HIS FAMILY quote MY FATHER WAS GONE I WAS ATTEMPTING TO RUN THE COMPANY BILLY SAYS TODAY EMPLOYEES WERE CHOOSING UP SIDES THE INSURANCE COMPANY THAT HAD LOANED US MONEY WAS WORRIED SOMEBODY NEEDED TO GAIN CONTROL AND I DID THAT FREE OF FAMILY CONSTRAINTS HE SET OUT TO FASHION HIS EMPIRE WHICH HE CHRISTENED MORRIS COMMUNICATIONS CORPORATION HE BOUGHT DAILY PAPERS IN TEXAS AND PROFITABLE WEEKLIES IN GEORGIA AND FLORIDA FOCUSING ON PUBLICATIONS WITH FEWER THAN ONE HUNDRED THOUSAND SUBSCRIBERS HE STARTED MORRIS NEWS SERVICE A REGIONAL NEWS WIRE TO FEED HIS GROWING STABLE OF PAPERS AND TO INJECT THE MORRIS NAME INTO AS MANY PUBLICATIONS AS POSSIBLE AND HE BOUGHT THE QUARTER HORSE NEWS IN FORT WORTH TEXAS MR. MORRIS WASTED NO TIME IN PUTTING HIS STAMP ON HIS NEWSPAPERS TWO OF THEM PRINT A BIBLE VERSE ON THEIR EDITORIAL PAGES EACH DAY AT THE AUGUSTA CHRONICLE WHERE HE REMAINS PUBLISHER HE RECENTLY LAID OUT HIS BASIC EDITORIAL TENETS WHICH INCLUDE DEFENDING AMERICA'S JUDEO CHRISTIAN HERITAGE quote HIS GROWN DAUGHTER AND TWO SONS WHO ALSO HOLD PUBLISHER OR EXECUTIVE POSTS SHARE HIS CONSERVATIVE BELIEFS HIS POLITICS ARE CLEARLY IN EVIDENCE IN JACKSONVILLE BEFORE HE BOUGHT THE OPERATION THE EDITOR AND PUBLISHER GENERALLY HAD SUPPORTED DEMOCRATS AND EDITORIALS WERE REGULARLY SKEPTICAL OF REAGAN INITIATIVES BUT WHILE THE INK WAS STILL DRYING ON HIS PURCHASE CONTRACT MR. MORRIS REPLACED TOP MANAGEMENT WITH FEWER AND MORE CONSERVATIVE EXECUTIVES IN WHAT BECAME KNOWN INTERNALLY AS THE PRE CHRISTMAS MASSACRE HE NAMED HIMSELF PUBLISHER AND INSTALLED ONE OF HIS LIEUTENANTS JAMES WHYTE AS GENERAL MANAGER FROM THAT TIME ON REAGAN WAS NEVER CRITICIZED SAYS A FORMER EXECUTIVE AT THE NEWSPAPER MR. WHYTE WHO RETIRED IN NINETEEN EIGHTY NINE SAYS HE FEELS SURE PRESIDENT REAGAN WAS CRITICIZED AT SOME POINT quote BUT GENERALLY SPEAKING ALL MORRIS NEWSPAPERS ARE CONSERVATIVE EMPLOYEES SAY HE DOESN'T ALWAYS INTERVENE AT SOME SMALLER PAPERS BUT IN AUGUSTA HIS HOME TURF HE RUNS THE CHRONICLE AS HIS FIEFDOM SAY SOME LOCAL POLITICIANS HE'S ALWAYS PRETTY MUCH CONTROLLED CITY POLITICS SAYS HOBSON CHAVOUS AN EIGHT YEAR MEMBER OF THE RICHMOND COUNTY COMMISSION WHICH SERVES THE AUGUSTA AREA MOST POLITICIANS AROUND HERE ARE AFRAID OF HIM quote MR. CHAVOUS SHOULD KNOW IN NINETEEN NINETY TWO MR. MORRIS CALLED HIM SEEKING HIS SUPPORT ON A VOTE TO BUILD A MINOR LEAGUE BASEBALL PARK NEAR THE RADISSON HOTEL MR. MORRIS HAD HELPED ERECT MR. CHAVOUS A DEMOCRAT WHO AT ONE TIME WAS ENDORSED BY THE AUGUSTA CHRONICLE REFUSED FROM THAT TIME FORWARD SAYS MR. CHAVOUS THE CHRONICLE STAYED ON ME CONSTANTLY THAT WAS MY PAYBACK ITS EDITORIAL PAGES BEGAN PAINTING MR. CHAVOUS WHO WAS IN A RUNOFF ELECTION OVER THE SUMMER AS quote A SELF SERVING WHEELERDEALER AND SCANDAL TAINTED INCUMBENT WHILE NEITHER MR. CHAVOUS NOR HIS OPPONENT IS BLACK THE EDITORIALS ALLUDED TO MR. CHAVOUS'S ALLIES IN THE BLACK COMMUNITY quote AND SUGGESTED THAT HE WOULD AX SOME QUALIFIED WHITE COUNTY DEPARTMENT HEADS AND REPLACE THEM WITH HACKS PICKED BY HIS LITTLE POLITICAL CLIQUE MR. CHAVOUS LOST BY FORTY THREE VOTES U. S. REPRESENTATIVE DON JOHNSON CURRENTLY UP FOR RE ELECTION ALSO LEARNED FIRSTHAND ABOUT MR. MORRIS'S WRATH IN NINETEEN NINETY TWO WITH BACKING FROM THE CHRONICLE MR. JOHNSON A DEMOCRAT EASILY WON HIS CONGRESSIONAL RACE NOW AFTER SUPPORTING PRESIDENT CLINTON'S CRIME BILL HE IS JUDAS JOHNSON AS A HEADLINE IN A RECENT CHRONICLE EDITORIAL DUBBED HIM POLITICAL PUNDITS SAY HIS SEAT IS ONE OF THE MOST VULNERABLE IN THE STATE TO THE G. O. P. quote THEY'RE DOING ALL THEY CAN TO DEFEAT ME SAYS MR. JOHNSON BILLY MORRIS LIKES TO CONTROL PEOPLE AND WHEN HE FOUND HE COULDN'T CONTROL ME HE GOT MAD I FIGURE MY JOB IS TO REPRESENT THE PEOPLE OF THE TENTH DISTRICT AND NOT BILLY MORRIS BUT SOMETIMES HE GETS THE TWO CONFUSED MR. MORRIS SAYS THE EDITORIALS ARE BASED ON POLITICIANS' RECORDS NOT ON VENDETTAS HE CONCEDES THOUGH THAT AS A LIFELONG quote MEMBER OF THE NATIONAL RIFLE ASSOCIATION HE WAS INFURIATED BY REPRESENTATIVE JOHNSON'S SUPPORT OF THE PRESIDENT'S CRIME BILL WHICH BANNED MANY SEMIAUTOMATIC WEAPONS MR. MORRIS'S INVOLVEMENT IN SOME OF HIS DAILIES OR INTERFERENCE AS HIS CRITICS SEE IT GOES FAR BEYOND THE EDITORIAL PAGES HE READS OVER ALMOST EVERY ARTICLE IN THE AUGUSTA CHRONICLE POINTING OUT TYPOGRAPHICAL ERRORS AND NOTING STORIES THAT COULD HAVE BEEN WRITTEN OR EDITED BETTER IN JACKSONVILLE HIS TEAM PRODUCED A BOOSTERISH SPECIAL REPORT ON FLORIDA'S PROUD CITY THAT SEEMED DESIGNED PRIMARILY TO ATTRACT ADVERTISERS HIS PAPERS AREN'T KNOWN FOR JOURNALISM WITH A CAPITAL J. SAYS A NEWSPAPER OWNER WITH PAPERS IN SIMILAR MARKETS quote BUT HE'S KNOWN FOR HAVING ONE OF THE BEST RUN COMPANIES NEXT UP FOR MR. MORRIS IS PERHAPS HIS TOUGHEST DEAL YET CREATING A SUCCESSION PLAN FOR HIS CHILDREN TO AVOID A REPEAT OF THE FAMILY FEUD HIS OWN FATHER LEFT AS HIS LEGACY HE ALSO IS OPEN TO MORE ACQUISITIONS DESPITE HIS COMMITMENT TO MIDSIZE NEWSPAPERS MR. MORRIS IS HEDGING HIS BETS WITH INVESTMENTS IN TELEVISION RADIO AND INTERACTIVE MEDIA AMONG OTHER PROJECTS IN THE WORKS HIS COMPANY PLANS TO SELL INFORMATION OVER THREE DIGIT PHONE NUMBERS SIMILAR TO THE BELL SYSTEM'S FOUR HUNDRED ELEVEN INFORMATION NUMBER AND IF CONSUMERS SOMEDAY DEMAND INTERACTIVE NEWS OVER THEIR TELEVISION SETS MR. MORRIS SAYS HE IS PREPARED TO RENT SPACE ON CABLE SYSTEMS AS WELL IF PEOPLE WANT THAT INFORMATION OVER A PHONE LINE I WANT TO BE THE ONE TO PROVIDE IT HE SAYS IF THEY WANT IT ON THEIR DOORSTEP AT FIVE IN THE MORNING I WANT TO PROVIDE IT IF THEY WANT IT OVER INTERACTIVE CABLE I INTEND TO PROVIDE IT quote LONDON STOCKS SURGED ONE point ONE percent FRIDAY ON A LATE RALLY AFTER A BIG SELL OFF THURSDAY FRANKFURT PRICES FELL ONE point SIX percent AS SELLING CONTINUED TO DOMINATE TRADING TOKYO STOCKS ENDED NARROWLY MIXED AS INVESTORS SAT ON THE SIDELINES AWAITING THE OUTCOME OF U. S. JAPAN TRADE NEGOTIATIONS WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED SIXTEEN point OH NINE DOWN ZERO point TWO FOUR REFLECTING A DECREASE IN MARKETS IN EUROPE AND THE ASIA slash PACIFIC REGION AND AN INCREASE IN THE AMERICAS MEDICAL DEVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT EIGHTY TWO point FOUR FOUR UP ONE point FIVE OH OR ONE point EIGHT FIVE percent WITH BIOMET POSTING A FIVE point THREE percent GAIN IN ITS LOCAL CURRENCY COAL STOCKS TRAILED AT ONE HUNDRED SEVEN point FIVE THREE DOWN TWO point FOUR THREE OR TWO point TWO percent WITH CYPRUS AMEX SLIDING FOUR point TWO percent IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX ADVANCED THIRTY THREE point EIGHT POINTS TO THREE THOUSAND TWENTY SIX point THREE THE SESSION'S HIGH THE F. T. THIRTY STOCK INDEX ADDED TWENTY SIX point THREE POINTS OR ONE point ONE percent TO TWO THOUSAND THREE HUNDRED FIFTY point ONE VOLUME WAS FIVE HUNDRED THIRTY NINE point TWO MILLION SHARES COMPARED WITH FIVE HUNDRED EIGHTY SIX point THREE MILLION SHARES A DAY EARLIER LATE REPORTS OF PROGRESS IN U. S. JAPAN TRADE TALKS PUSHED LONDON SHARE PRICES HIGHER AFTER THE MARKET CLOSED A U. S. OFFICIAL DENIED THAT JAPAN AND THE U. S. HAD RESOLVED THEIR DISPUTE ON JAPANESE GOVERNMENT PROCUREMENT PRACTICES WHILE THE TALKS HAVEN'T BEEN CENTRAL TO DETERMINING MOVEMENT IN UNITED KINGDOM EQUITIES RECENTLY INVESTORS WERE LOOKING FOR REASONS TO BUY AFTER THURSDAY'S OVERDONE SELL OFF IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX FELL THIRTY ONE point EIGHT THREE POINTS TO TWO THOUSAND ELEVEN point SEVEN FIVE MOST OF THE LOSS CAME DURING AFTER MARKET ELECTRONIC TRADING INVESTORS WERE JITTERY AHEAD OF GERMAN NATIONAL ELECTIONS ON OCTOBER SIXTEENTH A WEAKER BOND MARKET AND THURSDAY'S SLIDE ON WALL STREET ALSO CONTRIBUTED TO LOSSES ON THE FRANKFURT BOURSE WHICH IS CLOSED TODAY FOR A HOLIDAY IN PARIS EQUITIES ROSE SLIGHTLY THE LATEST FRENCH UNEMPLOYMENT FIGURES FOR AUGUST WHICH LEFT THE JOBLESS RATE STEADY AT TWELVE point SIX percent BUT ADDED FIFTEEN THOUSAND TWO HUNDRED PEOPLE TO THE UNEMPLOYMENT ROLLS ADDED A BEARISH NOTE IN AMSTERDAM PRICES FELL IN LINE WITH GERMAN EQUITY AND BOND PRICES DESPITE GAINS IN U. K. STOCKS AND AN UPBEAT BEGINNING ON WALL STREET A NUMBER OF PARTICIPANTS WERE SIDELINED AS THEY TRIED TO GET USED TO THE BOURSE'S NEW TRADING EQUIPMENT WHICH BEGAN OPERATING FRIDAY IN MILAN STOCKS SLID ONE point FOUR percent UNDER PRESSURE FROM BEARISHNESS ON MANY EUROPEAN EXCHANGES IN MADRID SHARES DROPPED SLIGHTLY DESPITE A SUDDEN SURGE IN VOLUME IN THE LAST HALF HOUR OF TRADING AS DEALERS SQUARED POSITIONS AT THE END OF THE QUARTER IN STOCKHOLM PRICES FELL BUT LATE BUYING PUSHED SHARES ABOVE SESSION LOWS IN ZURICH EQUITIES SANK IN HECTIC DEALINGS WITH UNION BANK OF SWITZERLAND'S PROPOSAL TO RESTRUCTURE ITS CAPITAL CONTINUING TO WREAK HAVOC U. B. S.'S ANNOUNCEMENT THURSDAY THAT IT PLANS TO REPLACE ITS REGISTERED AND BEARER SHARES WITH A NEW BEARER SHARE LED THE MARKET INITIALLY TO DUMP THE BANK'S REGISTERED SHARE AND PUSH UP THE BEARER SHARE BUT BY LATE FRIDAY FOREIGN INVESTORS WERE PUTTING PRESSURE ON BEARER SHARES OUT OF FEAR THAT THE CONTROVERSY SURROUNDING THE CAPITAL RESTRUCTURING INCLUDING WHETHER SHAREHOLDERS WILL ULTIMATELY APPROVE IT AT AN EXTRAORDINARY GENERAL MEETING ON NOVEMBER TWENTY SECOND WILL WEIGH ON THE BANK IN COMING WEEKS IN BRUSSELS STOCKS CLOSED MIXED IN VOLATILE TRADING SHARES WERE SHARPLY LOWER AT MIDDAY BUT RECOVERED ON RUMORS OF A BREAKTHROUGH IN U. S. JAPAN TRADE TALKS IN TOKYO THE TWO HUNDRED TWENTY FIVE STOCK NIKKEI INDEX WAS TRADING AT MIDDAY MONDAY AT NINETEEN THOUSAND SIX HUNDRED FOURTEEN point OH TWO UP FIFTY point TWO ONE POINTS AFTER HAVING FALLEN FIFTY ONE point THREE ONE POINTS ON FRIDAY LATE FRIDAY THE NIKKEI RECOUPED SOME OF THE LOSSES IT SUFFERED EARLIER IN THE DAY WHEN PUBLIC FUNDS KEPT A LOW PROFILE IN THE MARKET LEAVING FUTURES PRICES TO SOFTEN AND RESULTING IN SELLING OF CASH EQUITIES BY ARBITRAGERS MARKET PARTICIPANTS MOSTLY SAT ON THE SIDELINES AS THEY AWAITED THE OUTCOME OF U. S. JAPAN TRADE TALKS CORPORATE ATTEMPTS TO PUSH THE INDEX HIGHER SHOWED UP SHORTLY BEFORE FRIDAY'S CLOSE BUT FAILED TO PUSH THE NIKKEI INDEX INTO POSITIVE TERRITORY CORPORATE AND INSTITUTIONAL INVESTORS CAN BOOK UNREALIZED PROFITS FROM SHAREHOLDINGS WHEN INDEX LEVELS OR INDIVIDUAL SHARE PRICES ARE HIGHER THAN AT THE END OF THE PREVIOUS FISCAL YEAR TERM THE FISCAL FIRST HALF ENDED FRIDAY IN SYDNEY EQUITIES FELL SLIGHTLY WITH STRONG GAINS BY GOLD AND OIL STOCKS OFFSET BY WEAKNESS AMONG BANK STOCKS WOODSIDE PETROLEUM LIMITED CONTINUED TO RISE AFTER ITS ANNOUNCEMENT LAST WEEK OF A SIGNIFICANT OIL DISCOVERY OFF AUSTRALIA'S NORTHWEST SHORE IN HONG KONG STOCKS SANK ONE point NINE percent TO THEIR LOWEST POINT IN MORE THAN A MONTH A NUMBER OF BEARISH FACTORS AFFECTED THE MARKET INCLUDING SIGNS THAT THE BRITISH COLONY'S SUPPLY OF BUILDABLE LAND WILL INCREASE AFTER A GOVERNMENT SALE ANNOUNCED DURING THE SESSION LACK OF PROGRESS IN TALKS BETWEEN THE CHINESE AND BRITISH FOREIGN MINISTERS AND SYMPATHY WITH INTEREST RATE ANXIOUS NEW YORK LISTED ISSUES IN SINGAPORE SHARES CLOSED MIXED IN DEALINGS MARKED BY A MODERATE RETREAT OF MAJOR ISSUES BLUE CHIPS DECLINED AS THE MARKET NEARED ITS PSYCHOLOGICAL RESISTANCE LEVEL OF TWO THOUSAND THREE HUNDRED FIFTY POINTS ON THE STRAITS TIMES INDEX IN KUALA LUMPUR PRICES FELL IN CHOPPY DEALINGS IN SEOUL SHARES JUMPED ONE point TWO percent WITH PAPER AND PETROCHEMICAL ISSUES AT THE FOREFRONT OF THE RALLY BLUE CHIPS WERE HIGHER ON RENEWED EXPECTATIONS FOR WIDENED FOREIGN STOCK OWNERSHIP IN MANILA EQUITIES EXTENDED THE PREVIOUS SESSION'S TECHNICAL REBOUND BUT TRADERS SAID THE BUYING INTEREST HAD SHIFTED TO BLUE CHIPS FROM SECOND LINE STOCKS IN WELLINGTON PRICES FELL IN QUIET TRADING INVESTORS SOUGHT DIRECTION FROM MAJOR OVERSEAS MARKETS IN BANGKOK STOCKS ROSE SLIGHTLY IN LOW VOLUME AS MOST MAJOR INVESTORS WERE RELUCTANT TO TRADE 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 PADDINGTON LOWE and PARTNERS slash S. M. S. HAS BEEN AWARDED THE CAMPARI LIQUEUR ACCOUNT FROM PADDINGTON A SUBSIDIARY OF GRAND METROPOLITAN THE AGENCY ALREADY HANDLES PADDINGTON'S BAILEY'S IRISH CREAM AND SAMBUCA ROMANA LIQUEUR BILLINGS FOR CAMPARI WEREN'T DISCLOSED PREVIOUSLY CAMPARI ADVERTISING HAD BEEN DONE ON A PROJECT BASIS BY MILTON SAMUELS ADVERTISING IN NEW YORK SEPARATELY PADDINGTON IS TAKING ITS GOLDSCHLAGER CINNAMON FLAVORED GOLD FLECKED LIQUEUR NATIONAL WITH A PROMOTION CREATED BY MILTON SAMUELS PADDINGTON WILL SPEND FOUR MILLION DOLLARS TO FIVE MILLION DOLLARS TO FLY A BLIMP OVER NATIONAL FOOTBALL LEAGUE GAMES ON MONDAY NIGHT FOOTBALL AND TO INCREASE ITS PRINT ADVERTISING T. G. I. FRIDAY'S THE DALLAS BASED RESTAURANT CHAIN T. G. I. FRIDAY'S SELECTED PUBLICIS slash BLOOM'S DALLAS OFFICE AS ITS AD AGENCY A REVIEW INCLUDED THE CHICAGO OFFICES OF FOOTE CONE and BELDING W. P. P. GROUP'S J. WALTER THOMPSON AND HAL RINEY and PARTNERS NEW CAMPAIGN GENERAL MILLS INTRODUCES ITS NEW AND IMPROVED CHEERIOS CEREAL TODAY WITH A CELEBRITY PACKED COMMERCIAL FROM SAATCHI and SAATCHI ADVERTISING IT FEATURES quote ENTERTAINMENT TONIGHT PERSONALITY JOHN TESH ACTRESS MARLEE MATLIN AND SUPERMODEL KATHY IRELAND AMONG OTHERS WHO'S NEWS TOM GOODMAN WAS NAMED VICE PRESIDENT MEDIA RELATIONS AT THE C. B. S. BROADCAST GROUP SUCCEEDING ANN MORFOGEN WHO WAS NAMED VICE PRESIDENT COMMUNICATIONS AT SONY CORPORATION OF AMERICA MR. GOODMAN HAD BEEN VICE PRESIDENT COMMUNICATIONS AT C. B. S. NEWS AND THE C. B. S. OWNED T. V. STATIONS JUDITH WERME IS REJOINING THE CHICAGO OFFICE OF OMNICOM GROUP'S D. D. B. NEEDHAM AS SENIOR VICE PRESIDENT GROUP CREATIVE DIRECTOR HEADING ONE OF THE AGENCY'S SIX CREATIVE TEAMS SHE WAS PREVIOUSLY WITH TATHAM EURO R. S. C. G. MISSISSIPPI'S NASCENT CASINO INDUSTRY IS STARTING TO RESEMBLE A FIRST TIME GAMBLER WHOSE EARLY STREAK OF LUCK APPEARS TO BE FLEEING ONLY TWO YEARS AFTER OPENING THEIR DOORS GAMBLING PARLORS IN TOWNS SUCH AS BILOXI AND TUNICA ARE COMING TO GRIPS WITH A CHANGED MARKET TOO MANY CASINOS ARE NOW CHASING AFTER TOO FEW PATRONS CUSTOMERS FROM OUT OF STATE WHO ACCOUNT FOR FULLY TWO THIRDS OF ALL GAMBLERS FIND LITTLE ELSE IN THE WAY OF ENTERTAINMENT AND THUS RETURN HOME ALL TOO QUICKLY AND NEIGHBORS INCLUDING ALABAMA ARKANSAS AND FLORIDA MAY SOON LEGALIZE GAMBLING THEMSELVES A MOVE THAT COULD STANCH THE FLOW OF VISITORS MISSISSIPPI THOUGH CHARACTERIZES THE PROBLEMS AS BOTH PREDICTABLE AND TEMPORARY PREDICTABLE BECAUSE LEGISLATORS EARLY ON DECIDED NOT TO LIMIT THE NUMBER OF CASINOS INCREASING THE CHANCES THAT SUPPLY WOULD OUTSTRIP DEMAND AND TEMPORARY BECAUSE THE STATE CURRENTLY IS LOOKING AT WAYS TO LEVERAGE ITS GAMING INDUSTRY INDEED SOME OFFICIALS WOULD LIKE TO SEE STILL MORE BUILDING PARTICULARLY BEFORE OTHER SOUTHERN STATES JOIN THE PARTY THIS IS THE TIME WHERE WE NEED TO GET THE DEVELOPMENT IN AHEAD OF ANOTHER JURISDICTION SAYS CHUCK PATTON DEPUTY DIRECTOR OF THE STATE GAMING COMMISSION I WOULD MUCH PREFER TO GET THEM IN HERE AND COMMITTED WHILE THE ONLY POSSIBILITY IS MISSISSIPPI quote THE STATE'S EXPERIENCES MAY WELL SERVE AS A PRIMER FOR COMMUNITIES ACROSS THE COUNTRY THAT ARE WEIGHING THE BENEFITS OF GAMBLING ON THE PLUS SIDE MISSISSIPPI'S CASINOS HAVE CREATED THIRTY FIVE THOUSAND JOBS AND GAMBLERS HAVE GRACIOUSLY CONTRIBUTED TENS OF MILLIONS OF DOLLARS TO THE STATE TREASURY GOING FORWARD THOUGH BOTH FIGURES COULD FLUCTUATE WILDLY DEPENDING ON MISSISSIPPI'S ABILITY TO STAY A STEP AHEAD OF THE COMPETITION IT'S GOING TO BE A REAL WAR OUT HERE SAYS DAN BARNETT GENERAL MANAGER OF HARRAH'S CASINO IN TUNICA EVERYBODY IS GOING TO FIGHT FOR MARKET SHARE CASUALTIES ARE ALREADY EVIDENT AFTER A FAST START MORE THAN THIRTY CASINOS HAVE OPENED SINCE AUGUST NINETEEN NINETY TWO SEVERAL OPERATIONS ARE RUNNING FOR COVER A JOINT VENTURE BETWEEN JACKPOT ENTERPRISES AND PRESIDENT RIVERBOAT CASINOS PULLED OUT OF MISSISSIPPI IN JULY HARRAH'S CASINOS A DIVISION OF PROMUS COMPANIES AND THE PRIVATELY OWNED SPLASH CASINO HAVE LAID OFF AT LEAST FOUR HUNDRED SIXTY PEOPLE IN RECENT MONTHS IN MOVES BOTH COMPANIES CHARACTERIZED AS quote RIGHT SIZING IN AUGUST BELLE CASINOS INCORPORATED IN BILOXI FILED FOR BANKRUPTCY PROTECTION THE TURMOIL IS REFLECTED IN THE INDUSTRY'S PERFORMANCE REVENUE PER GAMING POSITION AN INDICATOR OF PROFITABILITY DECLINED FORTY percent IN THE FIRST SEVEN MONTHS OF THIS YEAR IN AUGUST CASINO REVENUES DROPPED FIVE percent TO ONE HUNDRED THIRTY SIX point FOUR MILLION DOLLARS FROM ONE HUNDRED FORTY THREE point SIX MILLION DOLLARS IN JULY THE FIRST MONTH TO MONTH DECLINE ONE BIG PROBLEM IS A LACK OF HOTEL ROOMS THE EQUATION IS SIMPLE NO BEDS MEAN NO OVERNIGHT STAYS LIMITING THE AMOUNT OF TIME A PERSON CAN SPEND GAMBLING AND NO CONVENTION BUSINESS TO CHANGE THAT THE STATE GAMING COMMISSION IS CONSIDERING A PROPOSAL THAT WOULD FORCE CASINOS TO BUILD TWO HUNDRED FIFTY ROOM HOTELS OR SPEND AT LEAST TWENTY FIVE percent OF THE COST OF THE CASINO ON SOME FORM OF INFRASTRUCTURE AS A CONDITION FOR LICENSING WHAT WE'RE LOOKING AT IS CHANGING OUR MARKET FROM A DAY TRIPPER MARKET TO AN END DESTINATION RESORT THE STATE'S MR. PATTON SAYS BILOXI FOR INSTANCE WILL SOON BE HOME TO THE IMPERIAL PALACE CASINO AND A ONE THOUSAND ROOM HOTEL WHEN COMPLETED THE TWENTY FIVE STORY FACILITY WILL BE THE BIGGEST HOTEL AND CASINO IN THE STATE MEANWHILE TO THE SOUTH FLORIDA RESIDENTS WILL VOTE IN NOVEMBER ON A REFERENDUM THAT WOULD AUTHORIZE A MINIMUM OF FORTY SEVEN CASINOS IN THAT STATE TO THE NORTH PROMUS WANTS TO BUILD A ONE HUNDRED FIFTY MILLION DOLLAR RESORT AND CASINO IN WEST MEMPHIS ARKANSAS JUST ACROSS THE RIVER FROM MEMPHIS TO THE WEST IN NEW ORLEANS HARRAH'S IS BUILDING WHAT IS BILLED AS THE WORLD'S LARGEST CASINO THE FACILITY WITH SIX THOUSAND SLOT MACHINES WILL OPEN IN NINETEEN NINETY SIX ALL THIS CHURNING HAS CAUSED ULCERS ON WALL STREET WHICH HAS PROVIDED THE CAPITAL FOR MISSISSIPPI'S CASINOS IT'S A SAFE BET YOU'RE NOT GOING TO SEE ANY MORE CAPITAL GOING TO MISSISSIPPI IN THE NEAR TERM quote SAYS THOMAS DOYLE A SALOMON BROTHERS BOND ANALYST THE INVESTMENT COMMUNITY NEEDS TO SEE HOW MUCH MORE PAIN THE MISSISSIPPI MARKET WILL GO THROUGH BEFORE DIVING BACK IN STILL STATE OFFICIALS AS WELL AS SOME INDUSTRY ANALYSTS SAY THE SHAKEOUT IS HEALTHY MISSISSIPPI WITH ONE OF THE WEAKEST ECONOMIES IN THE COUNTRY IS LOOKING TO STIMULATE GROWTH TO THE MAXIMUM LEVEL POSSIBLE SAYS BRUCE TURNER A SALOMON BROTHERS STOCK ANALYST quote COMPETITION WILL DETERMINE THE WINNERS AND LOSERS NOT STATE GOVERNMENT TO DATE MISSISSIPPI HAS PUT ITS PROCEEDS FROM GAMBLING INTO THE STATE'S GENERAL FUND FOR FISCAL NINETEEN NINETY FIVE THAT FUND WILL TOTAL AN ESTIMATED TWO point FIVE THREE BILLION DOLLARS OF WHICH A PROJECTED ONE HUNDRED TWENTY MILLION DOLLARS IS EXPECTED TO COME FROM CASINOS THE BUDGET SURPLUS MEANWHILE HAS RISEN TO THREE HUNDRED THIRTY TWO MILLION DOLLARS IN FISCAL NINETEEN NINETY FOUR FROM TWENTY SEVEN MILLION DOLLARS ONLY TWO YEARS AGO HOWEVER STATE OFFICIALS SAY THEY'RE TRYING NOT TO BECOME OVERLY DEPENDENT ON THEIR FINANCIAL WINDFALL WE LOOK AT THIS GAMING MONEY AS A NIGHT AT THE POKER TABLE SAYS JOHN ARLEDGE SPOKESMAN FOR GOVERNOR KIRK FORDICE THINGS CHANGE AND YOU DON'T KNOW WHEN YOU'RE GOING TO BE UP OR DOWN WE'RE TRYING TO SPEND OUR WINNINGS CAUTIOUSLY quote SUSTAINED DIPLOMACY AND A LAST MINUTE THREAT OF TRADE SANCTIONS HELPED THE U. S. PERSUADE OIL RICH ARAB STATES TO PARTLY LIFT THEIR BOYCOTT OF ISRAEL THE MOVE SHOULD ENHANCE BOTH MIDEAST PEACE EFFORTS AND U. S. COMPANIES' INVESTMENT OPPORTUNITIES THERE FRIDAY'S ANNOUNCEMENT BY SAUDI ARABIA AND FIVE OTHER PERSIAN GULF STATES THAT THEY WOULD END THE BLACKLISTING OF U. S. AND OTHER FOREIGN COMPANIES THAT DO BUSINESS WITH ISRAEL PUBLICLY ACKNOWLEDGED A DECISION THE SIX MADE PRIVATELY A YEAR AGO BUT OVERTLY STATING THAT DECISION FOR THE FIRST TIME SENDS A POSITIVE SIGNAL TO CORPORATIONS THAT ARE WARY OF EITHER DOING BUSINESS IN THE ARAB WORLD FOR FEAR OF RUNNING UP AGAINST U. S. ANTIBOYCOTT LAWS OR WARY OF DOING BUSINESS IN ISRAEL FOR FEAR OF RUNNING AFOUL OF THE ARAB BOYCOTT SAID A SENIOR U. S. OFFICIAL WEDNESDAY IN A MOVE TO SPUR AN ANNOUNCEMENT U. S. OFFICIALS PRIVATELY WARNED SAUDI ARABIA THAT WITHIN DAYS THE TWENTY ONE MEMBER ARAB LEAGUE WOULD BE PUT ON THE SUPER THREE HUNDRED ONE WATCH LIST ACCORDING TO A U. S. OFFICIAL STATES ON THE WATCH LIST BECOME PRIORITY TARGETS ON WHICH TRADE SANCTIONS COULD BE IMPOSED THE OFFICIAL ADDED THAT THE THREAT PROBABLY GAVE THE PERSIAN GULF STATES ALL OF WHICH ARE MEMBERS OF THE ARAB LEAGUE THE FINAL PUSH TO GO PUBLIC IN A MIDDLE EAST ENVIRONMENT ALREADY MOVING STRONGLY TOWARD NORMALIZING RELATIONS WITH ISRAEL ISRAEL SIGNED A PEACE ACCORD A YEAR AGO WITH PALESTINIANS AND ISRAEL AND JORDAN ARE MOVING TOWARD ECONOMIC AND POLITICAL TIES MOROCCO AND TUNISIA ARE TRADING WITH ISRAEL AND LAST YEAR KUWAIT ONE OF THE MEMBERS OF THE GULF COOPERATION COUNCIL SAID IT WOULD NO LONGER ENFORCE THE BLACKLISTING OF COMPANIES DOING BUSINESS WITH ISRAEL LAST WEEK'S ANNOUNCEMENT ALSO UNDERSCORES THE WILLINGNESS OF ARAB STATES TO MOVE AHEAD OF SYRIA IN THEIR RELATIONS WITH THE JEWISH STATE SYRIA WANTS TO HOLD THE LIFTING OF THE BOYCOTT AS A TRUMP CARD TO BE PLAYED FOR NEGOTIATING GAINS HOWEVER THE SENIOR U. S. OFFICIAL SAID THAT INDIRECTLY THE ANNOUNCEMENT COULD HELP SYRIA WHICH ALSO IS TALKING PEACE WITH ISRAEL IN ISRAEL THE ANNOUNCEMENT OF THE PARTIAL LIFTING OF THE ARAB BOYCOTT WAS GREETED WITH A MIXTURE OF CAUTION AND OPTIMISM WHILE THIS IS AN IMPORTANT STEP THE BOYCOTT HAS BEEN OPERATED AND ADMINISTERED BY THE ARAB LEAGUE AND UNTIL THE ARAB LEAGUE CANCELS THE BOYCOTT IN ITS ENTIRETY THE FULL POLITICAL AND ECONOMIC GAINS CANNOT BE REALIZED SAID HARRY WALL DIRECTOR OF THE ISRAEL OFFICE OF THE ANTI DEFAMATION LEAGUE AN AMERICAN JEWISH ORGANIZATION THAT HAS BEEN ACTIVE IN FIGHTING THE BOYCOTT quote THIS IS NOT THE FIRST TIME THERE HAS BEEN SUCH ANNOUNCEMENTS FROM GULF COUNTRIES BUT THE MESSAGE DIDN'T RESONATE BEYOND THE FOREIGN MINISTRY THE QUESTION IS WILL THIS TRANSFER INTO ACTION ARAB GOVERNMENTS HAVE BOYCOTTED ISRAEL SINCE ITS BIRTH IN NINETEEN FORTY EIGHT AMY DOCKSER MARCUS IN TEL AVIV CONTRIBUTED TO THIS ARTICLE CALDOR CORPORATION A PROPOSED OFFERING OF TWO MILLION SIX HUNDRED THIRTY THOUSAND COMMON SHARES INCLUDING SHARES BY ODYSSEY PARTNERS L. P. TO BE SOLD BY PROSPECTUS ONLY VIA GOLDMAN SACHS and COMPANY DONALDSON LUFKIN and JENRETTE SECURITIES CORPORATION AND OPPENHEIMER and COMPANY CINERGY A NEW COMPANY TO BE FORMED BY THE ANTICIPATED MERGER OF CINCINNATI GAS and ELECTRIC COMPANY AND P. S. I. RESOURCES INCORPORATED A SHELF OFFERING OF EIGHT MILLION COMMON SHARES CORNING INCORPORATED AN OFFERING OF FOUR point FIVE MILLION COMMON SHARES DURA PHARMACEUTICALS INCORPORATED AN OFFERING OF TWO point FIVE MILLION COMMON SHARES TWO MILLION TWO HUNDRED FIFTY THOUSAND BY THE COMPANY AND TWO HUNDRED FIFTY THOUSAND BY BIOTECHNOLOGY INVESTMENTS LIMITED VIA DEAN WITTER REYNOLDS INCORPORATED AND MONTGOMERY SECURITIES ELLETT BROTHERS INCORPORATED AN OFFERING OF ONE point TWO MILLION COMMON SHARES THREE HUNDRED FIFTY THOUSAND BY THE COMPANY AND EIGHT HUNDRED FIFTY THOUSAND SHARES BY A CHAIRMAN OF THE COMPANY'S EXECUTIVE COMMITTEE WITH AN OVERALLOTMENT OPTION OF ONE HUNDRED THOUSAND SHARES VIA ROBERTSON STEPHENS and COMPANY AND A. G. EDWARDS and SONS INCORPORATED FALCON DRILLING COMPANY AN INITIAL OFFERING OF SIX point NINE MILLION SHARES FOUR point SIX MILLION SHARES TO BE SOLD BY THE COMPANY AND TWO point THREE MILLION SHARES TO BE SOLD BY SELLING HOLDERS AT FOURTEEN DOLLARS A SHARE WITH AN OVERALLOTMENT OPTION TO BUY ONE MILLION THIRTY FIVE THOUSAND SHARES VIA DONALDSON LUFKIN and JENRETTE KIDDER PEABODY and COMPANY AND MERRILL LYNCH GEARBULK HOLDING LIMITED AN OFFERING OF ONE HUNDRED SEVENTY FIVE MILLION DOLLARS IN SENIOR NOTES NOT A SHELF OFFERING AS REPORTED EARLIER JOHN Q. HAMMONS HOTELS INCORPORATED AN INITIAL OFFERING OF SIX MILLION FORTY TWO THOUSAND CLASS A COMMON SHARES VIA KIDDER PEABODY AND WERTHEIM SCHRODER and COMPANY MCCLAIN INDUSTRIES INCORPORATED AN OFFERING OF ONE MILLION TWO HUNDRED SEVENTY FIVE THOUSAND COMMON SHARES ONE MILLION ONE HUNDRED SEVENTY FIVE THOUSAND BY THE COMPANY AND ONE HUNDRED THOUSAND SHARES BY TWO SHAREHOLDERS INCLUDING A SENIOR VICE PRESIDENT WITH AN OVERALLOTMENT OPTION TO BUY ONE HUNDRED NINETY ONE THOUSAND TWO HUNDRED FIFTY SHARES VIA COMMONWEALTH ASSOCIATES STRATACOM INCORPORATED AN OFFERING OF ONE point FIVE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND GOLDMAN SACHS EMPIRE OF CAROLINA INCORPORATED SAID IT REDEEMED ELEVEN point SEVEN MILLION SHARES OF ITS STOCK FROM MAURICE A. HALPERIN BARRY S. HALPERIN MEMBERS OF THEIR FAMILIES AND A COMPANY CONTROLLED BY THEM THE TRANSACTION WHICH WAS EXPECTED IS VALUED AT ABOUT SEVENTY SIX MILLION DOLLARS AND RESULTS IN A CHANGE OF CONTROL OF THE TOY MAKING COMPANY MAURICE HALPERIN THE SEVENTY THREE YEAR OLD CHAIRMAN AND CHIEF EXECUTIVE IS SUCCEEDED IN THOSE POSITIONS BY STEVEN GELLER IN ADDITION THE COMPANY SAID MAURICE HALPERIN BARRY HALPERIN AND CAROL MINKIN RESIGNED AS DIRECTORS THEIR BOARD SEATS HAVEN'T YET BEEN FILLED CONGRESS WON'T YANK PROFESSIONAL BASEBALL'S UNIQUE ANTITRUST EXEMPTION THIS YEAR THOUGH LAWMAKERS WARN THE CLUB OWNERS THAT THEY'LL TAKE UP THE ISSUE AGAIN BEFORE SPRING TRAINING SENATOR HOWARD METZENBAUM ABANDONED HIS EFFORT TO ATTACH A LIMITED REPEAL OF THE ANTITRUST EXEMPTION TO THE BUDGET BILL FOR THE DISTRICT OF COLUMBIA THE OHIO DEMOCRAT SAID HE DIDN'T WANT TO OBSTRUCT UNRELATED LEGISLATION IN CONGRESS'S LAST DAYS BUT IT WAS ALSO CLEAR BY THE SPEECHES OF HIS FOES THAT HIS REPEAL AMENDMENT FACED FORMIDABLE OPPOSITION PARTICULARLY FROM SENATORS WHOSE STATES ARE HOME TO MAJOR LEAGUE CLUBS YET EVEN SOME OF THE OPPONENTS NOTABLY UTAH SENATOR ORRIN HATCH THE SENIOR REPUBLICAN ON THE SENATE JUDICIARY COMMITTEE WHICH HANDLES ANTITRUST MATTERS SERVED NOTICE THAT THEY WILL BE OPEN TO REPEAL PROPOSALS WHEN THE NEW CONGRESS OPENS IN JANUARY IF THE OWNERS DON'T REACH SOME ACCORD WITH THE STRIKING PLAYERS AND WHILE SENATOR METZENBAUM IS RETIRING SEVERAL SENATORS INDICATED THEY WOULD TAKE UP THE FIGHT FOR REPEAL THE HOUSE JUDICIARY COMMITTEE LAST WEEK APPROVED SIMILAR REPEAL LEGISLATION TO HAVE IN WAITING IN CASE SENATOR METZENBAUM SUCCESSFULLY AMENDED A SENATE BILL COMMITTEE CHAIRMAN JACK BROOKS D. TEXAS LIKEWISE HAS VOWED TO PRESS FOR REPEAL BEFORE THE NEXT SEASON MAYTAG CORPORATION CITING THE RECENT DETERIORATION AND CURRRENT WEAKNESS IN THE NEW ISSUE EQUITY MARKET IN AUSTRALIA SAID IT WON'T PROCEED WITH THE PLANNED INITIAL PUBLIC OFFERING OF ITS COMBINED AUSTRALIAN SUBSIDIARIES IN MAY THE NEWTON IOWA MAKER OF MAJOR HOME APPLIANCES ANNOUNCED PLANS TO SHED ITS HOOVER OPERATIONS IN AUSTRALIA AND NEW ZEALAND TO CONCENTRATE ITS RESOURCES MORE ON ITS CORE NORTH AMERICAN MAJOR APPLIANCE AND FLOOR CARE BUSINESSES HOOVER AUSTRALIA MAKES LAUNDRY EQUIPMENT REFRIGERATORS FREEZERS AND FLOORCARE PRODUCTS PRIMARILY FOR THE AUSTRALIAN AND NEW ZEALAND MARKETS MAYTAG SAID HOOVER AUSTRALIA IS A STRONG PROFITABLE COMPANY WITH A GOOD OUTLOOK FOR THIS YEAR AND NINETEEN NINETY FIVE THE COMPANY SAID IT CAN CREATE GREATER SHAREOWNER VALUE BY RETAINING THIS BUSINESS RATHER THAN DIVESTING IT IN A DOWN MARKET THE NUMBER OF MAJOR CARDIAC SURGERIES PERFORMED IN U. S. HOSPITALS WAS NEARLY FLAT LAST YEAR AND THE COSTS OF SUCH PROCEDURES IS LEVELING OFF AS WELL ACCORDING TO A NEW SURVEY ABOUT THREE HUNDRED THIRTY THOUSAND EIGHT HUNDRED CORONARY ARTERY BYPASSES WERE PERFORMED IN NINETEEN NINETY THREE ONE HUNDRED FEWER THAN THE YEAR BEFORE ACCORDING TO HCIA INCORPORATED A BALTIMORE HEALTH CARE CONSULTING COMPANY MOREOVER THE AVERAGE CHARGE FOR BYPASS SURGERY REMAINED RELATIVELY STABLE AT FORTY THOUSAND EIGHT HUNDRED FORTY NINE DOLLARS COMPARED WITH FORTY THOUSAND FIVE HUNDRED SEVENTY SEVEN DOLLARS THE YEAR BEFORE IF ADJUSTED FOR INFLATION THE AVERAGE COST FELL ALMOST TWO percent MEANWHILE THE NUMBER OF ANGIOPLASTIES GREW ONLY FIVE percent AFTER SEVERAL YEARS OF DOUBLE DIGIT GROWTH THE AVERAGE CHARGE OF SIXTEEN THOUSAND FIVE HUNDRED NINETY FIVE DOLLARS FOR THE PROCEDURE WAS ONLY FIVE HUNDRED FIFTY ONE DOLLARS HIGHER THAN THE AMOUNT CHARGED IN NINETEEN NINETY TWO THE FIGURES ARE BASED ON A PROJECTION OF A SAMPLE OF EIGHT point TWO MILLION MEDICAL RECORDS FROM ONE THOUSAND FOUR HUNDRED ACUTE CARE HOSPITALS IN THE U. S. J. D. KLEINKE A PRINCIPAL WITH HCIA SAID THE STABILIZATION IN PRICE AND FREQUENCY OF SUCH PROCEDURES SHOWS THAT THE U. S. HEALTH CARE SYSTEM IS REFORMING ITSELF THROUGH MARKET FORCES BYPASSES AND ANGIOPLASTIES ARE BREAD AND BUTTER PROCEDURES FOR HUNDREDS OF THE LARGEST HOSPITALS ACROSS THE COUNTRY quote MR. KLEINKE SAID AS PRICES FLATTEN THE ONLY WAY HOSPITALS CAN PRESERVE THEIR MARGINS IS TO DELIVER CARE MORE EFFICIENTLY IN THE U. S. THE TOTAL HOSPITAL BILL FOR CORONARY ARTERY BYPASS OPERATIONS WAS THIRTEEN point FIVE BILLION DOLLARS IN NINETEEN NINETY THREE UP JUST HALF A PERCENTAGE POINT FROM NINETEEN NINETY TWO APPROXIMATELY SIX point FIVE BILLION DOLLARS WAS SPENT ON ANGIOPLASTIES UP ALMOST NINE percent FROM NINETEEN NINETY TWO MR. KLEINKE NOTES THAT THE INCREASE IN THE TOTAL BILL FOR ANGIOPLASTY REFLECTS INCREASED USE OF THE PROCEDURE AS OPPOSED TO PRICE GOUGING BY HOSPITALS OR DRUG COMPANIES IF THERE WERE NO ANGIOPLASTY TO ABSORB THE GROWTH IN THE ELDERLY PATIENTS INDICATED FOR SURGICAL INTERVENTION THE TOTAL BILL WOULD BE TWO TO THREE TIMES HIGHER AS THE MEDICAL COMMUNITY WOULD BE FORCED TO PERFORM THAT MANY MORE BYPASSES EACH YEAR MR. KLEINKE SAID COSTS IN SOME HOSPITALS HAVE GONE DOWN BECAUSE OF LOWER PRICES BEING PAID FOR SUPPLIES AND SHORTER HOSPITAL STAYS FOR THE RECOVERING PATIENT AT EMORY UNIVERSITY HOSPITAL IN ATLANTA THE PRICE THE HOSPITAL PAYS FOR BALLOON CATHETERS USED IN ANGIOPLASTIES HAS GONE DOWN BY AS MUCH AS FORTY percent IN THE PAST YEAR AT WILLIAM BEAUMONT HOSPITAL IN ROYAL OAK MICHIGAN THE OVERALL CHARGES FOR CORONARY BYPASS SURGERY HAVE GONE DOWN ABOUT TWO THOUSAND DOLLARS THE USE OF NEW MEDICINES PARTICULARLY CLOT BUSTING DRUGS IS KEEPING COSTS IN CHECK quote WE'VE LEARNED TO USE CERTAIN DRUGS TO PROTECT THE HEART BETTER SO WE DON'T HAVE TO SPEND A HIGH LEVEL OF RESOURCES ON THE PATIENT SAID GREGORY KAY DIRECTOR OF CARDIAC SURGERY AT GOOD SAMARITAN HOSPITAL IN LOS ANGELES AT GOOD SAMARITAN ONE OF THE BUSIEST HOSPITALS IN CALIFORNIA FOR HEART SURGERY THE NUMBER OF OPERATIONS IS DOWN ABOUT FIVE percent AMONG OTHER THINGS THE HOSPITAL IS USING MEDICINES TO MANAGE HEART PROBLEMS IT ALSO SAYS SOME CALIFORNIANS ARE POSTPONING SURGERY BECAUSE THEY LACK HEALTH INSURANCE WE'VE ACTUALLY HAD PATIENTS ASK US IF THEY CAN PUT THIS OFF BECAUSE THEY'RE CONCERNED ABOUT THEIR JOB DOCTOR KAY SAID THE NEW YORK STOCK EXCHANGE SAID IT FINED MEMBER FIRM DEAN WITTER REYNOLDS INCORPORATED FIFTY THOUSAND DOLLARS AND TOOK DISCIPLINARY ACTION AGAINST TEN INDIVIDUALS AT VARIOUS FIRMS FOR VIOLATING EXCHANGE RULES AND FEDERAL SECURITIES LAWS DEAN WITTER A UNIT OF DEAN WITTER DISCOVER and COMPANY WAS FINED WITHOUT ADMITTING OR DENYING FINDINGS THAT IT FAILED TO REPORT COMPLAINTS AND DISPOSITIONS OF COMPLAINTS ON A TIMELY BASIS AND VIOLATED CERTAIN FINANCIAL OPERATIONAL AND RECORD KEEPING REQUIREMENTS A HEARING PANEL FOUND THAT BETWEEN SEPTEMBER NINETEEN EIGHTY NINE AND APRIL NINETEEN NINETY FOUR DEAN WITTER FAILED TO FILE TIMELY REPORTS RELATING TO THIRTY SEVEN REPORTABLE MATTERS DEALING WITH THIRTY FIVE PRESENT OR FORMER EMPLOYEES THE FIRM ALSO FAILED TO REPORT ABOUT SIXTY FOUR CUSTOMER COMPLAINTS THE PANEL FOUND THE FIRM ALSO CONSENTED TO FINDINGS WITHOUT ADMITTING OR DENYING WRONGDOING THAT IT FAILED TO PROVIDE FOR APPROPRIATE PROCEDURES OF SUPERVISION AND CONTROL DURING NINETEEN EIGHTY NINE AND NINETEEN NINETY DEAN WITTER SAID IT HAD NO COMMENT ON THE ACTION UNLESS OTHERWISE NOTED THE FOLLOWING INDIVIDUALS COULDN'T BE REACHED OR DECLINED TO COMMENT MICHAEL ZACCARO CAPISTRANO BEACH CALIFORNIA A BRANCH OFFICE MANAGER WAS BARRED IN SUPERVISORY CAPACITIES FOR SIX MONTHS WITHOUT ADMITTING OR DENYING FINDINGS HE FAILED TO SUPERVISE A BROKER PROPERLY AND FAILED TO SUPERVISE DILIGENTLY CERTAIN ACCOUNTS SERVICED BY THE BROKER CARY WAYNE DEPRIEST PHOENIX A FORMER BROKER WAS BARRED FOR THIRTY MONTHS AFTER BEING FOUND GUILTY OF SALES PRACTICE MISCONDUCT INVOLVING OPTIONS IN ONE CUSTOMER'S ACCOUNT MAKING MATERIAL MISSTATEMENTS TO HIS EMPLOYER AND FAILING TO COMPLY WITH EXCHANGE REQUESTS FOR CERTAIN INFORMATION MR. DEPRIEST SAID THE DISCIPLINARY ACTION WAS CREATED BY A FAILURE TO RESPOND SINCE I AM ESSENTIALLY OUT OF THE INDUSTRY quote HE ADDED THERE IS POTENTIALLY SOME SHARING OF THE BLAME BETWEEN THE MEMBER FIRM THE BRANCH MANAGER AND MYSELF HUGH DYSON RALEIGH N. C. A BROKER WAS SUSPENDED FOR TWO MONTHS WITHOUT ADMITTING OR DENYING FINDINGS OF SALES PRACTICE MISCONDUCT IN SIX CUSTOMERS' ACCOUNTS BRUCE CAMPBELL LOS ANGELES A BROKER WAS FINED THREE THOUSAND FIVE HUNDRED DOLLARS AND SUSPENDED FOR TWO WEEKS WITHOUT ADMITTING OR DENYING FINDINGS INCLUDING THAT HE ARRANGED FOR CREDIT TO THREE CUSTOMERS FOR SECURITIES PURCHASES ON TERMS MORE FAVORABLE THAN PERMITTED AND ENTERED TRADES ON A DISCRETIONARY BASIS FOR THE ACCOUNT OF A FOURTH CUSTOMER WITHOUT OBTAINING WRITTEN AUTHORIZATION JAMES H. DONOVAN EXCELSIOR MINNESOTA A BROKER WAS BARRED PERMANENTLY FOLLOWING A CONTESTED HEARING IN WHICH HE WAS FOUND GUILTY OF MISAPPROPRIATION AND RELATED MISCONDUCT CONCERNING HIS JOINT MARGIN ACCOUNT WITH HIS WIFE AND HIS SON'S MARGIN ACCOUNT CONCERNING REIMBURSING A CUSTOMER FOR LOSSES AND CONCERNING HIS REFUSAL TO COMPLY WITH EXCHANGE REQUESTS THAT HE TESTIFY MEENU M. SACHDEVA FREMONT CALIFORNIA A FORMER NONREGISTERED TELEMARKETER WAS BARRED FOR ONE YEAR WITHOUT ADMITTING OR DENYING FINDINGS CONCERNING TAKING A QUALIFICATION EXAMINATION ROSS E. MILLER FORT LAUDERDALE FLORIDA A FORMER BROKER WAS BARRED FOR ONE WEEK WITHOUT ADMITTING OR DENYING FINDINGS THAT HE FAILED TO PAY A FORTY SEVEN THOUSAND DOLLAR ARBITRATION AWARD PROPERLY GEORGE LEWIS ANAHEIM HILLS CALIFORNIA WAS BARRED PERMANENTLY WITHOUT ADMITTING OR DENYING FINDINGS HE MISAPPROPRIATED CUSTOMER FUNDS COMMINGLED A CUSTOMER'S FUNDS WITH FUNDS IN HIS OWN ACCOUNT AND MADE MATERIAL MISSTATEMENTS TO THE EXCHANGE JERALD MICHAEL KERR BALTIMORE WAS BARRED PERMANENTLY AFTER BEING FOUND GUILTY OF MISAPPROPRIATING FUNDS ERRONEOUSLY CREDITED TO A CUSTOMER'S ACCOUNT BY SELLING SECURITIES ERRONEOUSLY DEPOSITED INTO A CUSTOMER'S ACCOUNT AND KNOWING THE SECURITIES DIDN'T BELONG TO THE CUSTOMER AND THEN DIVIDING THE PROCEEDS FROM THE SALE WITH THE CUSTOMER RICHARD ELLSWORTH FARWELL LOS ANGELES A FORMER BROKER WAS BARRED UNTIL HE COMPLIES WITH EXCHANGE REQUESTS TO TESTIFY REGARDING CERTAIN MATTERS TIME WARNER INCORPORATED IN A MOVE TO BOLSTER THE CORPORATE LEVEL MANAGEMENT TEAM OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER GERALD M. LEVIN IS SEEKING A REPLACEMENT FOR ITS LONGTIME CHIEF FINANCIAL OFFICER ACCORDING TO PEOPLE CLOSE TO THE ENTERTAINMENT PUBLISHING AND CABLE GIANT CONAGRA INCORPORATED'S CHIEF FINANCIAL OFFICER STEPHEN L. KEY FIFTY ONE YEARS OLD HAS EMERGED AS A LEADING CANDIDATE FOR THE TIME WARNER POST WHICH IS CURRENTLY HELD BY BERT W. WASSERMAN OFFICIALS OF TIME WARNER DECLINED TO COMMENT MR. KEY ALSO DECLINED TO COMMENT AND MR. WASSERMAN COULDN'T BE REACHED MR. WASSERMAN SIXTY TWO WAS THE LONGTIME CHIEF FINANCIAL OFFICER OF WARNER COMMUNICATIONS INCORPORATED BEFORE IT WAS ACQUIRED IN NINETEEN EIGHTY NINE BY TIME INCORPORATED THE TRANSACTION THAT CREATED TIME WARNER AS FOR MR. KEY BEFORE JOINING THE OMAHA NEBRASKA FOOD CONCERN IN NINETEEN NINETY ONE HE WAS AN ACCOUNTANT WITH THE ARTHUR YOUNG FIRM AND THEN ITS SUCCESSOR ERNST and YOUNG BEGINNING IN NINETEEN SIXTY EIGHT ARTHUR YOUNG WAS WARNER COMMUNICATIONS' LONGTIME OUTSIDE ACCOUNTANT WHILE THE FORMER ERNST and WHINNEY SERVED TIME INCORPORATED AFTER THE TWO ACCOUNTING FIRMS MERGED THE RESULTING ERNST and YOUNG WITH MR. KEY RUNNING ITS NEW YORK OFFICE SERVED THE MERGED TIME WARNER MR. WASSERMAN'S DEPARTURE WOULD REPRESENT TIME WARNER'S LAST SENIOR CORPORATE LINK TO THE ERA OF THE LATE STEVEN J. ROSS MR. LEVIN'S PREDECESSOR AS CHAIRMAN OF TIME WARNER AND FOUNDER OF WARNER COMMUNICATIONS MR. WASSERMAN HAD BEEN A TOP AIDE OF MR. ROSS'S STRETCHING BACK SOME THREE DECADES TO WARNER COMMUNICATIONS' PREDECESSOR COMPANY AND WAS NAMED CHIEF FINANCIAL OFFICER OF THE MERGED TIME WARNER WHEN MR. ROSS DIED IN DECEMBER NINETEEN NINETY TWO MR. WASSERMAN AND OTHER FORMER WARNER OFFICIALS WERE AMONG SEVERAL DIRECTORS ASKED TO LEAVE THE BOARD IN A RESTRUCTURING BY MR. LEVIN MARTIN PAYSON ANOTHER LONGTIME WARNER OFFICIAL WHO WAS MADE VICE CHAIRMAN OF TIME WARNER WAS EMBITTERED AND RESIGNED FROM HIS POST MR. WASSERMAN HOWEVER STAYED ON WELL LIKED INTERNALLY PARTICULARLY BY COLLEAGUES FROM WARNER AND RESPECTED AMONG HIS PEERS AT OTHER CORPORATIONS MR. WASSERMAN IS SAID TO STILL LOVE HIS JOB HE WAS ALSO WELL LIKED BY THE MANY BANKERS WHO HELPED FINANCE WARNER COMMUNICATIONS AND LATER TIME WARNER BUT MR. WASSERMAN WHO STILL REGALES COLLEAGUES WITH TALES OF MR. ROSS'S RISE IN THE ENTERTAINMENT INDUSTRY APPARENTLY FELL OUT OF FAVOR WITH MR. LEVIN RUMORS ABOUT HIS PENDING DEPARTURE BEGAN CIRCULATING MANY MONTHS AGO ALTHOUGH HIS CURRENT CONTRACT CONTINUES FOR AT LEAST TWO YEARS WHILE HE IS SAID TO MEET REGULARLY WITH MR. LEVIN PEOPLE FAMILIAR WITH THE SITUATION ALSO SAY MR. LEVIN RARELY TOOK MR. WASSERMAN'S ADVICE INSTEAD MR. LEVIN RELIES HEAVILY FOR FINANCIAL COUNSEL ON ODED ED ABOODI THE CONTROVERSIAL BANKER WHO WAS ORIGINALLY AN ADVISER TO MR. ROSS TRANSPORTATION DEPARTMENT OFFICIALS SAID THEY PLAN TO ADOPT TOUGHER CRASH PROTECTION REGULATIONS FOR PASSENGER TRAINS WITHIN THREE YEARS FEDERAL RAILROAD ADMINISTRATOR JOLENE MOLITORIS SAID THE FIRST REGULATIONS WOULD APPLY TO HIGH SPEED TRAINS SUCH AS THE TWENTY SIX THAT AMTRAK PLANS TO PURCHASE FOR ITS NORTHEAST CORRIDOR THE REGULATIONS WOULD BE BASED LARGELY ON RESEARCH THAT AMTRAK CONDUCTED RECENTLY TO HELP SET THE BID SPECIFICATIONS FOR THOSE TRAINS MS. MOLITORIS AND DEPUTY TRANSPORTATION SECRETARY MORTIMER DOWNEY SPEAKING AT A RAIL SAFETY SUMMIT HERE SAID THE REGULATIONS MIGHT PRODUCE RAIL CARS THAT HAVE STRONGER ENDS quote CRUSH ZONES TO ABSORB IMPACT FROM CRASHES AND AIRLINE STYLE LUGGAGE RACKS TO PREVENT LOOSE BAGS FROM FLYING AROUND THE CAR IN AN ACCIDENT BUT THE RULES LIKE CAR SAFETY REGULATIONS WOULD ALLOW THE MANUFACTURER TO DECIDE HOW TO ACHIEVE THAT AMOUNT OF PROTECTION AMTRAK THE NATIONAL PASSENGER RAIL SERVICE HAS HAD A SERIES OF DERAILMENTS RECENTLY INCLUDING AN ACCIDENT IN AUGUST THAT INJURED MORE THAN ONE HUNDRED PEOPLE NEAR SYRACUSE N. Y. AMTRAK SAYS IT IS REQUIRING MORE SAFETY FEATURES IN ITS NEW TRAIN CARS INCLUDING ILLUMINATED FLOOR STRIPS TO GUIDE PASSENGERS TO SAFETY IN THE DARK AND FOUR EMERGENCY EXIT WINDOWS IN EACH COACH CAR MR. DOWNEY SAID THE NEW RULES WOULD BE AIMED PARTLY AT COMMUTER RAIL SERVICES INCLUDING NEWER SYSTEMS WITH LITTLE SAFETY EXPERIENCE TOO LONG A TIME HAS ELAPSED WITHOUT THIS INITIATIVE HE SAID GILBERT CARMICHAEL SENIOR VICE PRESIDENT OF MORRISON KNUDSEN CORPORATION A BOISE IDAHO MANUFACTURER OF PASSENGER TRAIN EQUIPMENT SAID THAT THE CRASHWORTHINESS OF TRAINS ALREADY IS EXTREMELY GOOD quote AND THAT THE PASSENGER TRAIN SYSTEM PROBABLY WON'T GROW IF TRAINS BECOME HEAVIER AND MORE EXPENSIVE TO OPERATE MR. CARMICHAEL A FORMER FEDERAL RAILWAY ADMINISTRATOR NOTED THAT BOTH PASSENGER AND FREIGHT TRAINS ALREADY ARE REQUIRED TO WITHSTAND AN EIGHT HUNDRED THOUSAND POUND FORCE IN THE FRONT WHEN IT COMES TO RATPAC BADPAC OR ATE PAC CONGRESSIONAL CANDIDATES CAN'T TELL A POLITICAL ACTION COMMITTEE WITHOUT A SCORECARD THAT'S WHY THE FEDERAL ELECTION COMMISSION CREATED PACRONYMS A GUIDE TO ACRONYMS ABBREVIATIONS AND COMMON NAMES OF FEDERAL PACS quote MORE AND MORE CANDIDATES AS THEY FILED REPORTS WOULDN'T KNOW THE FULL NAME OF THE PACS THAT HAD GIVEN THEM MONEY EXPLAINS KENT COOPER THE F. E. C.'S ASSISTANT STAFF DIRECTOR FOR DISCLOSURE THEY WOULD JUST KNOW AN ABBREVIATION OR ACRONYM SO WE PUT TOGETHER A GUIDE THAT WOULD SHOW THEM THE NEW THIRD EDITION OF THE FORTY ONE PAGE MANUAL LISTS SEVEN HUNDRED NINE PACRONYMS AND THE SPONSORING GROUPS AREN'T ALWAYS WHAT THEY SEEM RATPAC IS THE RELIGION AND TOLERANCE POLITICAL ACTION COMMITTEE WHILE BADPAC IS THE BRIDGETON AIR DEFENSE POLITICAL ACTION COMMITTEE AND THE ATE IN ATE PAC STANDS FOR ASPLUNDH TREE EXPERT COMPANY CLINTON PAC IS NO FOB FRIEND OF BILL THE PAC FOR CLINTON MILLS COMPANY IN CLINTON S. C. DIDN'T CONTRIBUTE ANYTHING TO PRESIDENT CLINTON'S NINETEEN NINETY TWO ELECTION BID AND HAS SUPPORTED SOME REPUBLICAN CANDIDATES IN THE PAST ON THE OTHER HAND THE SEEMINGLY SELF PROMOTIONAL HELUVA PAC HAS NO POLITICAL AGENDA AND HAS NEVER RAISED A DOLLAR FOR ANY CANDIDATE HELUVA WHICH STANDS FOR HIGHER EDUCATION LOVERS AT THE UNIVERSITY OF VIRGINIA WAS CREATED BY POLITICAL SCIENCE PROFESSOR LARRY SABATO WHO USES IT AS A TEACHING TOOL FOR HIS INTRODUCTION TO AMERICAN GOVERNMENT CLASS MR. COOPER SAYS CONFUSION ARISES WHEN A CANDIDATE CALLS A PAC BY A NICKNAME THAT THE PAC DOESN'T RECOGNIZE AND THE F. E. C. THEN USES THAT NICKNAME THIS MIGHT HAVE BEEN THE CASE WITH THE AMERICAN FROZEN FOOD INSTITUTE'S PAC ALTHOUGH LISTED IN THE GUIDE AS FREEPAC A SPOKESMAN FOR THE INSTITUTE SAYS INDIGNANTLY WE HAVE NEVER BEEN CALLED FREEPAC WE ARE AFFIPAC quote MR. COOPER INSISTS THAT FREEPAC IS THE NAME THE INSTITUTE CHOSE IN CONTRAST NOTAPAC LEAVES LITTLE CONFUSION GLENN R. SIMPSON A WRITER AT THE WASHINGTON'S ROLL CALL NEWSPAPER AND NOTAPAC'S CREATOR SAYS HE CHOSE THE NAME AS A CLUE THAT HIS COMMITTEE ISN'T A REAL FUND RAISING ORGANIZATION HE SAYS HE STARTED IT MAINLY TO GET ON MAILING LISTS I FIND IT AMUSING THAT NO ONE HAS BUMPED ME OFF THE LIST OF PACS MR. SIMPSON SAYS quote I HAVE NEVER EVEN SET UP A BANK ACCOUNT PERFORMANCE REVIEWS BOSSES HATE TO GIVE THEM WORKERS HATE TO GET THEM A SENIOR EXECUTIVE AT A BIG AUTO MAKER SO DREADED FACE TO FACE EVALUATIONS THAT HE RECENTLY DELIVERED ONE MANAGER'S REVIEW WHILE BOTH SAT IN ADJOINING STALLS IN THE MEN'S ROOM THE BOSS TOLD THE STARTLED SUBORDINATE I HAVEN'T HAD A CHANCE TO GIVE YOU A PERFORMANCE APPRAISAL THIS YEAR YOUR BONUS IS GOING TO BE TWENTY percent I AM REALLY HAPPY WITH YOUR PERFORMANCE THE CORPORATE WORLD TEEMS WITH SUCH STORIES SAYS EDWARD LAWLER WHO ADVISED THE AUTO MAKER AS DIRECTOR OF THE UNIVERSITY OF SOUTHERN CALIFORNIA'S CENTER FOR EFFECTIVE ORGANIZATIONS MOST MANAGERS ARE NOT GOOD AT PERFORMANCE APPRAISALS quote BECAUSE THEY DON'T KNOW HOW TO BE BOTH A JUDGE AND A COACH HE SAYS AT THE SAME TIME RANK AND FILE UNHAPPINESS RUNS DEEP A DECADE OF SURVEYS SHOWS MANY WORKERS SEE EVALUATIONS AS SUPERFICIAL INCONSISTENT AND UNRELIABLE WITH SCANT RELEVANCE TO ACTUAL DUTIES OR PAY LEVELS BUT THAT DISMAL PICTURE IS CHANGING AS MORE COMPANIES CHANGE THE WAY THEY KEEP TRACK OF WORKERS' STRENGTHS AND WEAKNESSES SOME ARE TACKLING THE TICKLISH JOB OF TRAINING BOSSES TO GIVE NEGATIVE FEEDBACK FACE TO FACE OTHERS HAVE UNVEILED SOPHISTICATED PERFORMANCE MANAGEMENT SYSTEMS THE SYSTEMS USUALLY INVOLVE A CONTINUING NEGOTIATED ASSESSMENT WITH MORE CHECKS AND BALANCES THAN THE CONVENTIONAL BRIEF SESSION ONCE A YEAR BETWEEN A MANAGER AND AN UNDERLING WE SEE MUCH MORE ATTENTION BEING PAID TO THIS THAN WE SAW FIVE YEARS AGO ESPECIALLY BY TOP EXECUTIVES SAYS EDWARD BANCROFT A HUMAN RESOURCES SPECIALIST FOR CONSULTANTS WYATT COMPANY IN CHICAGO BUSINESSES CAN'T SIMPLY DUMP REVIEWS WHICH WERE APPARENTLY INTRODUCED IN NINETEEN FOURTEEN BY RETAILER LORD and TAYLOR COMPANY AND ARE RECEIVED TODAY BY SOME SEVENTY MILLION AMERICANS ANNUALLY THE EVALUATIONS ARE CRUCIAL WHEN COMPANIES FIRE PROMOTE OR PAY SOMEONE MORE AND THEY CAN BE A CRITICAL DEFENSE WHEN WORKERS SUE OVER SUCH DECISIONS THOUGH A NECESSARY EVIL APPRAISALS OFTEN PRODUCE UNHAPPINESS SAYS CHARLOTTE BROOK A. T. and T. CORPORATION'S DISTRICT MANAGER FOR GLOBAL CAREER AND PERFORMANCE SYSTEMS THE TELECOMMUNICATIONS GIANT IS CURRENTLY PUTTING IN A PERFORMANCE MANAGEMENT SYSTEM AROUND THE WORLD OTHER COMPANIES ARE ALSO ADOPTING THE IDEA ABOUT SIXTY percent OF TWO HUNDRED FIVE BIG CORPORATIONS WITH THE SYSTEMS HAVE IMPLEMENTED THEM SINCE NINETEEN NINETY CONCLUDES A NEW SURVEY BY CONSULTANTS HEWITT ASSOCIATES IN LINCOLNSHIRE ILLINOIS PHARMACEUTICAL MAKER HOFFMANN LA ROCHE INCORPORATED ADOPTED A PERFORMANCE MANAGEMENT SYSTEM LAST YEAR AT A COST OF NEARLY ONE point FIVE MILLION DOLLARS quote PEOPLE NEED TO KNOW EXACTLY WHERE THEY STAND AND WHAT'S REQUIRED OF THEM IN A RAPIDLY CHANGING INDUSTRY SAYS ALAN RUBINO HUMAN RESOURCES VICE PRESIDENT AT THE NUTLEY N. J. UNIT OF SWITZERLAND'S ROCHE HOLDING LIMITED STARTING LAST DECEMBER HOFFMANN LA ROCHE MANAGERS SPENT THREE DAYS LEARNING HOW TO DO PERFORMANCE REVIEWS BETTER IN JANUARY EVERY MANAGER AND SUBORDINATE NEGOTIATED A PERFORMANCE PLAN TIED TO THE COMPANY'S STRATEGIC PRIORITIES THAT THEN HAD TO BE APPROVED BY THE MANAGER'S IMMEDIATE SUPERIORS HOFFMANN LA ROCHE BOSSES MUST ALSO CONDUCT A FORMAL REVIEW WITH THEIR WORKERS TWICE A YEAR AND HOLD INFORMAL COACHING SESSIONS EVERY QUARTER THIS YEAR'S BIGGEST RAISES WILL GO TO PEOPLE WHO A GROUP OF MANAGERS AGREES DID THE BEST JOB COMPARED WITH PEERS IN OTHER DEPARTMENTS MR. RUBINO SAYS WHILE THE NEW APPROACH IS LESS CAPRICIOUS IT'S VERY TIME CONSUMING MARTIN WASSERMAN HOFFMANN LA ROCHE'S DIRECTOR OF PULMONARY PHARMACOLOGY SAYS HE NOW SPENDS TWICE AS LONG TWENTY TO FORTY HOURS A YEAR TRACKING HIS FIFTEEN EMPLOYEES' PERFORMANCES I AM DOING MORE AT HOME HE CONCEDES SOME PEOPLE SAY IT IS MORE PAPERWORK AND A REAL HEADACHE quote BUT THE FIFTY TWO YEAR OLD SCIENTIST LIKES THE IDEA OF A PARTNERSHIP WITH HIS TROOPS HE NOTES THAT SOME ACT LESS INTIMIDATED DURING THEIR REVIEWS THAN IN THE PAST EMPLOYEES FEEL LIKE THEY ARE MORE IN CONTROL AND NOT SUCH A SLAVE TO MANAGEMENT HE SAYS AS PART OF ITS NEW PERFORMANCE MANAGEMENT PROGRAM A. T. and T. IS ELIMINATING ANOTHER MAJOR CAUSE OF EMPLOYEE ANGST THE COMPANY HAS STOPPED ASSIGNING PERFORMANCE RANKINGS TO ABOUT THIRTY SEVEN THOUSAND U. S. MANAGERS A. T. and T.'S FIVE RATING CATEGORIES UNSATISFACTORY TO quote FAR EXCEEDED OBJECTIVES SOMETIMES FOSTERED INTERNAL RIVALRY AND DISCOURAGED TEAMWORK RECALLS DAVID JOHNSON STRATEGIC MARKETING DIRECTOR FOR A UNIT THAT SHED THE RANKINGS LAST YEAR HE NOW RECEIVES A DESCRIPTIVE ASSESSMENT INSTEAD I DON'T THINK THERE IS ANY DOWNSIDE IN THE NEW SCHEME HE SAYS BURKE STINSON A TOP A. T. and T. SPOKESMAN DISAGREES STARS NO LONGER STAND OUT AS MUCH AS BEFORE HE SAYS AND THE MANAGER WHO WRITES HIS NEW NARRATIVE REPORT CARD IS LOATH TO TELL ME WHAT MY WEAKNESSES ARE quote HE COMPLAINS TAKING A DIFFERENT APPROACH CERIDIAN CORPORATION WISCONSIN POWER and LIGHT COMPANY AND OTHERS ARE DROPPING ROUTINE REVIEWS FOR EVERYONE EXCEPT BAD APPLES I DON'T THINK ANYONE WAS ALL THAT SORRY TO SEE THE OLD SYSTEM GO SAYS KRISTA LANG SHASKY MANAGER OF CAREER RESOURCES AT CERIDIAN AN INFORMATION SERVICES AND DEFENSE ELECTRONICS COMPANY IN MINNEAPOLIS ITS ONE HUNDRED CORPORATE STAFF MEMBERS RECENTLY BEGAN TO SEEK WRITTEN THREE HUNDRED SIXTY DEGREE FEEDBACK FROM HIGHER UPS PEERS SUBORDINATES AND CUSTOMERS EMPLOYEES USE THE RESULTS TO PLAN THEIR PROFESSIONAL DEVELOPMENT WITH THEIR BOSSES BUT THE FINDINGS AREN'T KEPT IN INDIVIDUALS' PERSONNEL FILES OR CONSIDERED IN SALARY DECISIONS SOME MAJOR EMPLOYERS VIEWING MANAGERS AS THE WEAKEST LINK IN APPRAISALS ARE USING ROLE PLAYING VIDEOTAPES AND NEW SOFTWARE PROGRAMS TO SHOW THEM HOW TO DELIVER CRITICISM FAIRLY AND LEGALLY quote IT'S VERY HARD TO LOOK ANYBODY IN THE EYE AND SAY YOU HAVE A BAD ATTITUDE SAYS DAVID CAMPBELL A SENIOR FELLOW AT THE NONPROFIT CENTER FOR CREATIVE LEADERSHIP IN GREENSBORO N. C. OR BODY ODOR THAT'S ANOTHER TOUGH MESSAGE FOR A SUPERIOR TO DELIVER SAYS LINDA KEEGAN MANAGER OF ORGANIZATIONAL DEVELOPMENT AND TRAINING AT APPLE COMPUTER INCORPORATED IN CUPERTINO CALIFORNIA ABOUT A YEAR AGO THE PERSONAL COMPUTER MAKER BEGAN OFFERING A THREE HOUR SESSION IN WHICH MANAGERS CAN PRACTICE GIVING SUBORDINATES FEEDBACK BEFORE SMALL AND LARGE GROUPS OF COLLEAGUES SO FAR FIVE HUNDRED OF APPLE'S THREE THOUSAND MANAGERS HAVE TAKEN IT NO ONE REALLY KNOWS WHETHER IMPROVING PERFORMANCE REVIEWS WILL BRING LASTING IMPROVEMENTS IN THE PERFORMANCE OF WORKERS OR BUSINESSES SO THE PUSH WON'T END SOON PREDICTS DOCTOR LAWLER THE U. S. C. PROFESSOR AND MANAGEMENT CONSULTANT WITH EMPLOYEE APPRAISAL SYSTEMS HE ADDS CONSULTANTS ALWAYS WILL BE ASSURED OF WORK IT'S A CLASSIC CASH COW IN THE WORLD OF CONSULTING ITALIAN CLOTHING MAKER BENETTON COMPANY SAID FIRST HALF NET PROFIT ROSE TWO percent TO ONE HUNDRED point FIVE BILLION LIRE SIXTY FOUR point SIX MILLION DOLLARS YEAR EARLIER PROFIT TOTALED NINETY EIGHT point SIX BILLION LIRE REVENUE ROSE SLIGHTLY TO ONE point THREE SIX SEVEN TRILLION LIRE EIGHT HUNDRED SEVENTY EIGHT point TWO MILLION DOLLARS FROM ONE point THREE SIX TWO TRILLION LIRE BENETTON SAID PRICE REDUCTIONS WITH CUTS OF SIX percent IN ITALY AND TWENTY EIGHT percent IN JAPAN BROUGHT A SIGNIFICANT RISE IN SALES VOLUMES AND RAISED MARKET SHARE WHILE HOLDING REVENUE STEADY BENETTON ATTRIBUTED THE STABILITY OF ITS OPERATING PERFORMANCE TO EFFORTS TO RATIONALIZE ITS COST STRUCTURE THUS FAR IN NINETEEN NINETY FOUR ALLEGHENY and WESTERN ENERGY CORPORATION IDENTIFIED ITS PREVIOUSLY UNDISCLOSED BIDDER AS ENERGY CORPORATION OF AMERICA LAST WEEK ALLEGHENY and WESTERN AGREED TO BE ACQUIRED BY ECA FOR TWELVE DOLLARS A SHARE THE COMPANY HASN'T PUT A TOTAL DOLLAR VALUE ON THE TRANSACTION ALLEGHENY and WESTERN HAS ABOUT SEVEN point FIVE MILLION SHARES OUTSTANDING GIVING THE PACT AN INDICATED VALUE OF NINETY MILLION DOLLARS ALLEGHENY and WESTERN IS A NATURAL GAS AND OIL EXPLORATION PRODUCTION AND UTILITY CONCERN ECA IS THE PARENT COMPANY OF EASTERN AMERICAN ENERGY CORPORATION AN INDEPENDENT OIL AND GAS COMPANY BOTH ARE BASED IN CHARLESTON WEST VIRGINIA YOUR BOSS WILL LOVE THIS PHONE SERVICE G. T. E. CORPORATION PLANS TO ANNOUNCE TODAY THAT IT HAS SIGNIFICANTLY UPGRADED ITS G. T. E. AIRFONE TELEPHONE SERVICE THE NATION'S LARGEST SO THAT PEOPLE ON THE GROUND CAN CALL AIR PASSENGERS AT THEIR SEAT ON AN AIRLINER THAT'S A FIRST BUT G. T. E. FACES STIFF COMPETITION CLAIRCOM COMMUNICATIONS THE AIRLINE PHONE SERVICE OWNED BY A. T. and T. CORPORATION'S MCCAW CELLULAR COMMUNICATIONS INCORPORATED PLANS SIMILAR UPLINK quote PHONE SERVICES ANOTHER RIVAL IN FLIGHT PHONE INCORPORATED LETS YOU CALL ITS OPERATORS WHO WILL FORWARD A MESSAGE TO A PASSENGER THAT SOMEONE NEEDS TO BE CALLED BACK CALLING THE AIRFONE CUSTOMER IS LABORIOUS A CALLER ON THE GROUND MUST DIAL A SPECIAL TOLL FREE NUMBER ONE TO EIGHT HUNDRED AIRFONE THEN LISTEN TO A LONG WINDED RECORDED PROMPT BEFORE PUNCHING IN HIS PHONE NUMBER WHEN A CALL WAS PLACED TO A PLANE ON FRIDAY THIS FIRST STEP TOOK TWO MINUTES FIFTEEN SECONDS AND THEN YOU WAIT AND WAIT AND WAIT AFTER ABOUT FIVE MINUTES A CALL CAME BACK FROM A G. T. E. SPOKESWOMAN ON UNITED FLIGHT NINE HUNDRED SEVENTY SIX NEW YORK TO LOS ANGELES TOTAL CALL SETUP TIME MORE THAN SEVEN MINUTES AN ETERNITY IN THE PHONE BUSINESS G. T. E.'S CALL IS ALSO EXPENSIVE DESPITE ALL THE TECHNOHYPE ABOUT EFFICIENT DIGITAL TECHNOLOGY G. T. E. CHARGES TWO DOLLARS AND FIFTY CENTS A MINUTE FOR CALLS THAT ARE MADE AS WELL AS RECEIVED EXPLAINS HORACE LINDSAY PRESIDENT OF G. T. E. AIRFONE RIGHT NOW THIS IS TARGETED AT THE BUSINESS TRAVELER AND HE'S PREPARED TO PAY FOR THE CONVENIENCE STILL THE DIGITALLY TRANSMITTED CALL TO AIRFONE SPOKESWOMAN LAURA LITTEL WAS QUITE CLEAR AND RINGING HER UP DIDN'T SEEM TO BOTHER OTHER PASSENGERS I DIDN'T EVEN HEAR THE PHONE RING. SAID ALI KARI A PASSENGER SITTING IN FRONT OF MS. LITTEL A PASSENGER CAN REGISTER TO BE REACHED BY DIALING ASTERISK OH THREE NINE FROM THE PLANE'S PHONE OR A SPECIAL TOLL FREE NUMBER ON THE GROUND G. T. E. IS ALSO GIVING OUT AIRFONE CARDS EACH WITH A USER'S SPECIAL NUMBER PASSENGERS CAN USE THE NUMBER AND A SECURITY PIN NUMBER AS A PERMANENT PHONE NUMBER IN THE AIR CURRENTLY G. T. E. IS OFFERING THE NEW SERVICE ON U. S. AIR AND DELTA AIR LINES' SHUTTLE SERVICES TO WASHINGTON AND BOSTON WHERE AIRFONE TRAFFIC IS HEAVIEST MANY OF U. A. L. CORPORATION'S UNITED AIR LINES PLANES ALSO HAVE THE NEW PHONES ALL TOLD TWO THOUSAND PLANES ARE EQUIPPED WITH AIRFONE SERVICE WITH ABOUT TWO HUNDRED SEVENTY FIVE NOW UPGRADED TO DIGITAL PHONES AND FIFTY WITH THE SPECIAL SOFTWARE THAT PERMITS THEM TO RECEIVE CALLS THE REMAINING FLEET WILL GET THE PHONES WITHIN THE YEAR G. T. E. SAID NEW DATA SERVICES ARE COMING A SPECIAL PHONE JACK IN THE NEW AIRFONE PHONES ALLOW PASSENGERS WITH P. C.S TO PLUG IN AND SEND FILES FROM THE PLANE MOREOVER G. T. E. IS INSTALLING FACSIMILE MACHINES IN AIRLINERS TO LET PASSENGERS SEND FAXES quote THE DAYS OF WIRED PHONES ARE NUMBERED DECLARES MR. LINDSAY PEOPLE ARE GOING MOBILE CONSUMERS WHO SHOP FOR CARS AND TRUCKS SOON WILL HAVE TO DO SOME EXTRA READING UNDER A FEDERAL LAW THAT TOOK EFFECT SATURDAY AUTO MAKERS ARE REQUIRED TO SLAP LABELS ON THE NEW CARS AND TRUCKS THEY SELL IN THE U. S. IDENTIFYING THE FOREIGN PARTS CONTENT THE PERCENTAGE OF PARTS MADE IN THE U. S. OR CANADA THE LABELS SHOULD SHOW UP IN DEALERSHIPS THIS MONTH CONGRESS PASSED THE LAW IN NINETEEN NINETY TWO AT THE URGING OF THE BIG THREE DOMESTIC AUTO MAKERS DURING A WAVE OF BUY AMERICAN SENTIMENT JAPANESE AUTO MAKERS CONTEND THE LABELS ARE DESIGNED TO MAKE THEIR RIVALS LOOK DOMESTIC AND ALL JAPANESE PRODUCTS LOOK FOREIGN EVEN THOUGH SOME TOYOTAS ARE ASSEMBLED IN KENTUCKY AND SOME HONDAS IN OHIO THE NEW LAW COULD MAKE IT HARDER FOR U. S. TRADE NEGOTIATORS TO COMPLAIN OF NONTARIFF TRADE BARRIERS IN JAPAN BUT EVEN THOUGH THE LAW MAY HAVE BEEN INTENDED AS SUCH A BARRIER TO JAPANESE IMPORTS SOME CAR DEALERS PREDICT THE ACT WILL HAVE LITTLE EFFECT ON CONSUMERS JERRY SEINER A DEALER WHO SELLS CHEVROLETS NISSANS AND SEVERAL OTHER MAKES IN SALT LAKE CITY SAID HE DOUBTS PEOPLE WILL BUY MORE CHEVROLETS AND FEWER NISSANS BECAUSE OF THE NEW LABELS SOME PEOPLE WANT TO BUY DOMESTIC FOR JOBS AND SOME PEOPLE WANT TO BUY FOREIGN FOR QUALITY quote MR. SEINER SAID THE ACT IN CALCULATING DOMESTIC CONTENT DOESN'T FACTOR IN WHERE VEHICLES ARE ASSEMBLED AND IT TREATS CANADIAN PARTS AS DOMESTIC AS A RESULT A MITSUBISHI ECLIPSE ASSEMBLED IN ILLINOIS WILL HAVE A SEVENTY TWO percent DOMESTIC PARTS CONTENT WHILE A FORD CROWN VICTORIA ASSEMBLED IN CANADA WILL HAVE AN EIGHTY percent DOMESTIC PARTS CONTENT ACCORDING TO THE AMERICAN AUTOMOBILE MANUFACTURER'S ASSOCIATION A LOBBY FOR THE BIG THREE DOMESTIC AUTO MAKERS JAPANESE AUTO MAKERS ARGUE THAT THE LAW CONFUSES CONSUMERS AND IS DESIGNED TO DISCOUNT JAPANESE INVESTMENTS IN U. S. ASSEMBLY OPERATIONS WHILE UNFAIRLY CREDITING U. S. MANUFACTURERS FOR THEIR HUGE CANADIAN OPERATIONS SPOKESMEN FOR THE BIG THREE COUNTER THAT THE LABELS STATE WHERE A VEHICLE WAS ASSEMBLED THEY ARGUE THAT JAPANESE AUTO MAKERS WILL HAVE LOW NUMBERS SIMPLY BECAUSE THEY IMPORT A GREAT DEAL OF PARTS FROM JAPAN THE DETROIT AUTO MAKERS SAY THAT UNDER THE LAW FORD MOTOR COMPANY'S DOMESTIC PARTS CONTENT WILL AVERAGE EIGHTY THREE percent CHRYSLER CORPORATION'S NINETY percent AND GENERAL MOTORS CORPORATION'S NINETY TWO percent THE MAJOR JAPANESE AUTO MAKERS HAVEN'T RELEASED THEIR CONTENT CALCULATIONS BUT THE AAMA RELEASED THE DOMESTIC CONTENT OF TWO JAPANESE DESIGNED VEHICLES ALSO SOLD BY BIG THREE DEALERS THE AAMA SAYS THE MITSUBISHI ECLIPSE HAS A DOMESTIC CONTENT OF SEVENTY TWO percent SLIGHTLY HIGHER THAN THE VIRTUALLY IDENTICAL PRODUCT SOLD BY CHRYSLER AS AN EAGLE TALON WITH SEVENTY percent AND THE OHIO BUILT NISSAN QUEST HAS A SEVENTY percent DOMESTIC CONTENT THE SAME AS THE IDENTICAL MERCURY VILLAGER THERE IS LITTLE ARGUMENT HOWEVER THAT WHAT'S DOMESTIC DEPENDS AS MUCH ON POLITICS AS ON WHERE A VEHICLE IS BUILT THE LABELING ACT MEANS AUTO MAKERS ARE REQUIRED TO CALCULATE DOMESTIC CONTENT THREE WAYS ONCE FOR THE LABELING ACT ONCE FOR ENVIRONMENTAL PROTECTION AGENCY STANDARDS GOVERNING IMPORTED AND DOMESTIC CARS AND ONCE FOR THE NORTH AMERICAN FREE TRADE PACT WHICH GIVES TARIFF BREAKS TO DOMESTIC BUT NOT FOREIGN VEHICLES TOYS R. US INCORPORATED WHICH LAST YEAR INCITED AN EARLY CHRISTMAS SHOPPING FRENZY BY ISSUING DISCOUNT COUPONS IN NOVEMBER WILL TRY TO GET SHOPPERS OUT EVEN EARLIER THIS YEAR THE PARAMUS N. J. RETAILER SAID IT PLANS TO DISTRIBUTE DISCOUNT COUPONS WORTH THREE HUNDRED NINE DOLLARS IN VARIOUS NEWSPAPERS NEXT SUNDAY TO MILLIONS OF HOMES ACROSS THE COUNTRY MOST OF THE COUPONS WILL BE GOOD ONLY THROUGH OCTOBER TOYS R. US PLANS TO TRUMPET ITS DISCOUNTING PROGRAM WITH A TELEVISION AND RADIO ADVERTISING CAMPAIGN AND AN APPEARANCE BY ACTORS FROM THE MIGHTY MORPHIN POWER RANGERS T. V. SHOW AT THE COMPANY'S FLAGSHIP STORE IN NEW YORK THE PROGRAM COULD SPARK A PRICE WAR AMONG DISCOUNT CHAINS INDEED AT LEAST ONE DISCOUNTER HILLS STORES COMPANY BASED IN CANTON MASSACHUSETTS IS PREPARING TO LAUNCH A HOLIDAY CATALOG OF COUPONS IN NOVEMBER LAST YEAR TO SHOPPERS' DELIGHT RETAILERS OFTEN MATCHED COMPETITORS' DISCOUNTED PRICES AND HONORED RIVALS' COUPONS AFTER PURCHASING NINETY DOLLARS OF TOYS LAST YEAR AT DEEP DISCOUNTS AT A KMART STORE USING TOYS quote R. US COUPONS JERDICE BOOTH OF BEAVERCREEK OREGON WROTE A LETTER TO HER LOCAL NEWSPAPER TELLING ABOUT HER SHOPPING FEAT I DOUBT IF I'LL EVER BE ABLE TO DO THAT AGAIN SHE WROTE BUT TOLD OF THE NEW TOYS R. quote US COUPON CAMPAIGN SHE SAID THEN AGAIN MAYBE I'LL DO IT AGAIN THIS YEAR'S TOYS R. US COUPON BONUS BOOK quote IS GOING TO COST US A LOT OF DOLLARS SAID MICHAEL GOLDSTEIN THE COMPANY'S CHIEF EXECUTIVE OFFICER HE DECLINED TO SAY EXACTLY HOW MUCH BUT HE PREDICTS THAT THE ANTICIPATED RETURNS WILL MORE THAN OFFSET EXPENSES LAST YEAR'S COUPON PROGRAM BOOSTED THE COMPANY'S NOVEMBER SALES TEN percent COMPARED WITH THE SAME PERIOD IN NINETEEN NINETY TWO AND LIFTED OVERALL NINETEEN NINETY THREE HOLIDAY SEASON SALES SEVEN point FOUR percent COMPARED WITH A YEAR EARLIER THE COMPANY SAID SURVEYS SHOW THAT IN DIFFICULT ECONOMIC TIMES CONSUMERS TEND TO SHOP LATER WAITING FOR PRICES TO DROP AS CHRISTMAS NEARS FORECASTS FOR THIS YEAR CALL FOR A STRONGER ECONOMY AND HIGHER CONSUMER CONFIDENCE LEVELS BUT RETAILERS AREN'T TAKING ANY CHANCES HILLS A ONE HUNDRED FIFTY FOUR STORE DISCOUNT CHAIN IS GOING TO WORK VERY HARD TO KEEP PRICES DOWN THIS YEAR SAID WILLIAM FRIEND A HILLS SPOKESMAN LAST YEAR'S CATALOG HELPED HILLS ACHIEVE BRISK CHRISTMAS SALES THE COMPANY HAD DOUBLE DIGIT SALES GROWTH IN STORES AT LEAST A YEAR OLD FOR TOYS R. quote US THE DEMISE OF DIRECTLY COMPETING SPECIALTY CHAINS SUCH AS CHILD WORLD INCORPORATED AND LIONEL CORPORATION'S KIDDIE CITY STORES HAS SPAWNED A NEW BREED OF RIVALS DISCOUNT CHAINS SUCH AS HILLS WHOSE MAIN FEATURE IS LOW PRICES INSTEAD OF TOY SUPERMARKETS' BROAD SELECTIONS TOYS R. US SAYS IT ISN'T WORRIED ABOUT LOSING BUSINESS AS A RESULT OF DISCOUNT CHAIN RIVALS HONORING ITS COUPONS CONSUMERS ULTIMATELY WIND UP IN TOYS R. US STORES DURING THE HOLIDAY SEASON BECAUSE OF ITS WIDE SELECTIONS ACCORDING TO MR. GOLDSTEIN BY LAUNCHING ITS COUPON PROGRAM IN OCTOBER TOYS quote R. US HOPES THIS YEAR TO STEAL SOME HALLOWEEN BUSINESS FROM DISCOUNT CHAINS ITS COUPON BOOK AMONG OTHER THINGS FEATURES HALLOWEEN COSTUMES MAKEUP KITS AND PUMPKIN LANTERNS BUT COUPON CLIPPERS WON'T FIND POWER RANGER ACTION FIGURES AND OTHER NEW HITS AMONG THE SAVINGS TWENTY DOLLARS OFF FISHER PRICE'S TOURNAMENT TABLE WHICH NORMALLY RETAILS FOR ONE HUNDRED NINETY DOLLARS TEN DOLLARS OFF THE FORTY DOLLAR PRICE OF TIGER ELECTRONICS' TWO X. L. TALKING ROBOT AND TEN DOLLARS OFF LEGO SYSTEMS INCORPORATED'S FIFTY DOLLARS FLAME FIGHTERS DISCOUNTS RANGE FROM TWO DOLLARS TO TWENTY DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY TOYS R. US SHARES FELL THIRTY SEVEN point FIVE CENTS TO THIRTY FIVE point SIX TWO FIVE DOLLARS NIPPON STEEL CORPORATION JAPAN'S LARGEST STEELMAKER CUT AROUND FOUR THOUSAND EMPLOYEES FROM ITS WORK FORCE DURING ITS FISCAL FIRST HALF ENDED FRIDAY THROUGH TRANSFERS TO AFFILIATED COMPANIES AND EARLY RETIREMENT A SPOKESMAN SAID NIPPON STEEL WON'T DERIVE A LARGE IMMEDIATE COST BENEFIT FROM THE CUTS AS IT MUST CONTINUE TO PAY COMPENSATION PACKAGES TO RETIRING EMPLOYEES THAT ROUGHLY ARE EQUIVALENT TO EMPLOYEES' EXPECTED SALARY BUT HE SAID THE COMPANY HOPES TO REAP COST BENEFITS FROM CHANGING THE OVERALL STRUCTURE OF ITS WORK FORCE WITHIN FIVE YEARS NIPPON STEEL HOPES TO CONTINUE TRANSFERRING EMPLOYEES AND ENCOURAGING EARLY RETIREMENT THE SPOKESMAN SAID HE ADDED HOWEVER THAT IT WILL BE DIFFICULT TO SECURE AGREEMENT FROM A SIMILAR NUMBER OF EMPLOYEES IN THE SECOND HALF OF THE FOUR THOUSAND WORKERS WHO AGREED TO EARLY RETIREMENT PACKAGES OR TRANSFERS DURING THE HALF ABOUT ONE THOUSAND FIVE HUNDRED CAME FROM MANAGEMENT RANKS THE SPOKESMAN SAID AS OF FRIDAY NIPPON STEEL'S WORK FORCE WAS AROUND FORTY SIX THOUSAND DOWN FROM ABOUT FIFTY THOUSAND MARCH THIRTY FIRST WITH THE EARLY RETIREMENT AGREEMENTS THE AVERAGE AGE OF THE COMPANY'S EMPLOYEES WILL DECLINE NIPPON STEEL'S EMPLOYEES AVERAGE FORTY FOUR YEARS THE HIGHEST AVERAGE AGE OF JAPAN'S FIVE BIGGEST STEELMAKERS BECAUSE OF THE ENTRENCHED GRADUATED SALARY STRUCTURE THAT PUTS A BURDEN ON SALARY COSTS THE COMPANY PLANS TO REVAMP ITS OPERATIONS TO CUT SEVEN THOUSAND EMPLOYEES FROM ITS WORK FORCE BY MARCH NINETEEN NINETY SEVEN THE SPOKESMAN EMPHASIZED THE STRUCTURAL CHANGES ARE SEPARATE FROM THE CUTS THROUGH TRANSFERS AND EARLY RETIREMENT RETAIL SALES IN IRELAND FELL A SEASONALLY ADJUSTED ONE point TWO percent IN JULY FROM JUNE AND WERE UP FIVE point SIX percent FROM A YEAR EARLIER THE CENTRAL STATISTICS OFFICE SAID THE LATEST MONTH ON MONTH FALL IN THE INDEX WHICH MEASURES THE VALUE RATHER THAN THE VOLUME OF SALES COMPARES WITH A REVISED RISE OF ZERO point EIGHT percent IN JUNE FROM THE MONTH EARLIER THE JUNE FIGURE WAS ORIGINALLY REPORTED AS A ZERO point NINE percent RISE IN A BREAKTHROUGH REFLECTING THE GLOW OF NEW STREET LAMP TECHNOLOGY PACIFIC SCIENTIFIC COMPANY HAS DEVELOPED A DIMMABLE quote FLUORESCENT LIGHT IT HOPES WILL REPLACE MILLIONS OF HOUSEHOLD INCANDESCENT BULBS THE NEWPORT BEACH CALIFORNIA ELECTRICAL EQUIPMENT MAKER PLANS TO UNVEIL SOLIUM A LINE OF PROTOTYPE SCREW IN FLUORESCENT SYSTEMS WITH ELECTRONIC DIMMERS BUILT INTO THEIR BASES IN NEW YORK THIS MORNING IN AN INTERVIEW EDGAR S. BROWER CHAIRMAN AND PRESIDENT SAID HE WAS NEAR A MARKETING PARTNERSHIP WITH A MAJOR LIGHTING CONCERN HE DECLINED TO IDENTIFY HOWEVER AN EXECUTIVE AT GENERAL ELECTRIC COMPANY'S LIGHTING DIVISION SAID THAT COMPANY IS IN VERY PRELIMINARY DISCUSSIONS WITH PACIFIC SCIENTIFIC AND IS TESTING SOLIUM PROTOTYPES NOW MR. BROWER SAID PACIFIC SCIENTIFIC PLANS TO MANUFACTURE THE FINAL SYSTEMS ITSELF INITIALLY AT ITS FISHER PIERCE UNIT'S WEYMOUTH MASSACHUSETTS FACILITY WHILE SO CALLED COMPACT FLUORESCENT LIGHTS HAVE BEEN POPULAR AS LONG LASTING ENERGY SAVING ALTERNATIVES TO INCANDESCENT BULBS DESPITE A PRICE OF FIFTEEN DOLLARS OR MORE FOR THE REPLACEMENT PRODUCTS THEY CAN'T BE DIMMED BECAUSE THEIR CIRCUITRY IS INCONSISTENT WITH CONVENTIONAL DIMMING SYSTEMS FISHER PIERCE RESEARCHERS DEVELOPED ELECTRONIC SOLUTIONS TO THAT PROBLEM IN DESIGNING SIMPLIFIED CONCEPTS FOR THEIR MAJOR STREET LIGHTING CONTROLS BUSINESS MR. BROWER SAID THE NEW SOLIUM PRODUCTS CAPABLE OF ADJUSTING LIGHT BETWEEN ONE HUNDRED FIFTY AND THIRTY WATTS quote WILL VIRTUALLY REPLACE THE THREE WAY BULB HE SAID THIS MAJOR DEFINING LINE FOR PACIFIC SCIENTIFIC WILL REQUIRE AN AMBITIOUS START UP PLAN FOR NEXT YEAR'S FIRST HALF IT ALSO PLANS A TEN MILLION DOLLAR NEW U. S. PLANT PROBABLY IN THE EAST WITH INITIAL CAPACITY OF TEN MILLION UNITS LAST WEEK MR. BROWER MENTIONED SOLIUM BRIEFLY IN ANALYST PRESENTATIONS SAYING IT OFFERED AN ANNUAL CORPORATE SALES BOOST OF FIFTY MILLION DOLLARS TO ONE HUNDRED MILLION DOLLARS OVER THE NEXT TWENTY FOUR MONTHS IN NINETEEN NINETY THREE PACIFIC SCIENTIFIC EARNED EIGHT point THREE MILLION DOLLARS OR ONE DOLLAR AND FIFTY THREE CENTS A SHARE ON SALES OF ONE HUNDRED NINETY FIVE point SIX MILLION DOLLARS THE LINE'S MAIN POTENTIAL HE SAID IN THE INTERVIEW IS AMONG THE TWENTY MILLION OR SO COMPACT FLUORESCENTS NOW REPLACING LIGHT BULBS ANNUALLY IN THE U. S. THREE WAY INCANDESCENT BULBS WHILE A FRACTION OF THE ROUGHLY ONE point FIVE BILLION STANDARD BULBS MADE EACH YEAR STILL SELL IN THE TENS OF MILLIONS IN A STANDARD SCREW IN DESK LAMP MR. BROWER DEMONSTRATES AN ELONGATED PROTOTYPE SEVERAL TIMES THE SIZE OF A LIGHT BULB RINGED WITH A BLUE PLASTIC BAND THAT REPRESENTS ONE OF THE DESIGNS PROPOSED FOR ADJUSTING INTENSITY WITH A HAND TWIST LIKE MOST COMPACT FLUORESCENTS HIS USE A THIRD THE ENERGY OF INCANDESCENT BULBS AND LAST TEN TIMES AS LONG HE EXPECTS THEIR PRICES TO COMPETE WITH NON DIMMABLE FLUORESCENTS TERRY MCGOWAN G. E. LIGHTING'S MANAGER OF WORLD WIDE APPLICATIONS DEVELOPMENT SAID THAT WHILE ONE PIECE DIMMABLE BULBS GO ONE STEP BEYOND THE PRODUCT THAT'S ON THE MARKET TODAY quote G. E. IS EXPERIMENTING MAINLY WITH DIMMING ELECTRONICS IN A SEPARATE ADAPTER WHICH CAN BE RETAINED WHEN THE BULB BURNS OUT BUT KEVIN MCMULLEN WHO MANAGES G. E. LIGHTING'S FLUORESCENT PRODUCTS AND HAS TALKED WITH PACIFIC SCIENTIFIC ABOUT SOLIUM SAID TECHNOLOGIES ARE STILL OPEN TO QUESTION I THINK AND THERE MAY BE MARKETING OPPORTUNITIES FOR BOTH ADAPTERS AND SOLIUM TYPE SYSTEMS MALCOLM CHEEK THE FORMER SAINT LOUIS EXECUTIVE WHO SPENT THREE YEARS AS A FUGITIVE PLEADED GUILTY TO VARIOUS FEDERAL CHARGES INCLUDING BANK FRAUD AND CONSPIRACY TO COMMIT BANKRUPTCY FRAUD MR. CHEEK FORTY FOUR YEARS OLD WAS CHIEF EXECUTIVE OF Y. and A GROUP INCORPORATED THEN A HIGH FLYING ENGINEERING CONCERN WHEN HE VANISHED FROM A NEW YORK HOTEL ROOM IN MARCH NINETEEN NINETY ONE HE WAS APPREHENDED IN SOUTH CAROLINA BY THE FEDERAL BUREAU OF INVESTIGATION THIS YEAR MR. CHEEK PLEADED GUILTY IN SAINT LOUIS TO CHARGES THAT INCLUDED EMBEZZLEMENT OF Y. and A EMPLOYEE PENSION MONEY GOVERNMENT DOCUMENTS SAY MR. CHEEK EMBEZZLED MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS FROM Y. and A EMPLOYEE WELFARE AND PENSION PLANS MR. CHEEK'S WIFE STEPHANIE ALSO PLEADED GUILTY TO BANKRUPTCY FRAUD AND TO MAKING STATEMENTS TO THE F. B. I. TO HIDE HER HUSBAND'S WHEREABOUTS GOVERNMENT DOCUMENTS SAY MR. CHEEK KNEW IN EARLY NINETEEN NINETY ONE THAT Y. and A WAS IN SERIOUS FINANCIAL DIFFICULTY THE DOCUMENTS SAY THE CHEEKS CONCEALED PROPERTY FROM A BANKRUPTCY COURT THE FEDERAL AVIATION ADMINISTRATION SAID IT WILL KEEP LORAL CORPORATION AS THE PRIME CONTRACTOR FOR ITS PROJECT TO UPGRADE THE AIR TRAFFIC CONTROL SYSTEM AS THE TWO SIDES NEGOTIATE A NEW AGREEMENT ON PRICE AND SCHEDULE THE DECISION WHICH WAS EXPECTED FOLLOWED A NINETY DAY EVALUATION OF LORAL'S SOFTWARE FOR THE CONTROLLER WORK STATIONS CONDUCTED BY THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S LINCOLN LABORATORY AND CARNEGIE MELLON UNIVERSITY'S SOFTWARE ENGINEERING INSTITUTE WE HAVE COMPLETED AN EVALUATION AND THE UNDERLYING ARCHITECTURE IS SOUND BUT THE DOCUMENTATION AND IMPLEMENTATION LEAVE A LOT TO BE DESIRED SAID GEORGE L. DONOHUE THE F. A. A.'S EXECUTIVE DIRECTOR FOR ACQUISITIONS THE CONTRACT IS PART OF THE F. A. A.'S ADVANCED AUTOMATION SYSTEM FOLLOWING REPEATED COST AND SCHEDULE OVERRUNS THE F. A. A. KILLED TWO PARTS OF THE ADVANCED AUTOMATION SYSTEM IN JUNE AND IS STILL WORKING TO REDEFINE THE WORK STATION PROJECT WHICH IS VALUED AT MORE THAN ONE BILLION DOLLARS LLOYD'S OF LONDON CHAIRMAN DAVID ROWLAND SAID THAT AFTER FIVE YEARS OF LOSSES NINETEEN NINETY THREE WAS A quote VERY PROFITABLE YEAR FOR UNDERWRITING AND NINETEEN NINETY FOUR ALSO LOOKS POSITIVE LLOYD'S AN INSURANCE MARKET REPORTS FULL RESULTS WITH ABOUT A THREE YEAR LAG SO ACTUAL NINETEEN NINETY THREE FIGURES WON'T BE PUBLISHED UNTIL NINETEEN NINETY SIX THE OUTLOOK FOR NINETEEN NINETY FIVE CONTINUES TO BE FAVORABLE MR. ROWLAND SAID IN A LETTER TO INVESTORS MANY LESSONS HAVE BEEN LEARNED FROM THE PREVIOUS PERIOD OF HEAVY LOSSES HE ADDED THE LOSSES HAVE BEEN DETRIMENTAL TO HUNDREDS OF LLOYD'S NAMES quote AS THE MARKET'S INVESTORS ARE CALLED WHILE NAMES CAN REAP TREMENDOUS PROFITS IN GOOD YEARS THEY ALSO HAVE BEEN SUBJECT TO UNLIMITED LIABILITY ON INSURANCE CLAIMS AND RECENTLY MANY HAVE BEEN FORCED TO FILE FOR PROTECTION FROM CREDITORS LLOYD'S ANNOUNCED A TWO point OH FIVE BILLION POUND THREE point TWO THREE BILLION DOLLARS LOSS IN MAY FOR NINETEEN NINETY ONE ITS LATEST REPORTING YEAR BRINGING THE TOTAL LOSSES FOR THE PAST FOUR YEARS TO SIX point SEVEN BILLION POUNDS MUCH OF THE NINETEEN NINETY ONE LOSS WAS THE RESULT OF CLAIMS RELATING TO POLICIES UNDERWRITTEN IN PREVIOUS YEARS PARTICULARLY IN CONNECTION WITH ASBESTOS AND POLLUTION CLAIMS IN THE U. S. MR. ROWLAND SAID THAT THE SHAKE OUT AT LLOYD'S THAT HAS OCCURRED HAS MEANT THE DEPARTURE OF MANY WHO DID NOT PERFORM WITH A CONCENTRATION OF SUPPORT BEHIND THE MOST SKILLED UNDERWRITERS HE ADDED THAT HE EXPECTS UNDERWRITING CAPACITY IN NINETEEN NINETY FIVE TO BE quote REDUCED COMPARED WITH NINETEEN NINETY FOUR ALTHOUGH IT WASN'T POSSIBLE YET TO SAY BY HOW MUCH SEVERAL GROUPS OF MEMBERS ARE SUING LLOYD'S AGENTS A JUDGMENT ON A SIX HUNDRED TWENTY NINE MILLION POUND SUIT BROUGHT BY THE GOOD WALKER GROUP OF NAMES IN THE U. K. HIGH COURT IS EXPECTED LATER THIS MONTH VAL POWELL CHIEF EXECUTIVE OFFICER OF THE ASSOCIATION OF LLOYD'S MEMBERS SAID THE LATEST UPBEAT STATEMENT WAS UNLIKELY TO LESSEN THE RESOLVE OF HARD HIT NAMES TO SEEK COMPENSATION FROM AGENTS AT LLOYD'S THE DISGRUNTLED ARE STILL DUCKING AND WEAVING AND FIGHTING AND THEY WILL CONTINUE TO DO SO HE SAID ITALIAN FOOD AND CHEMICALS GROUP FERRUZZI FINANZIARIA COMPANY REBOUNDING FROM A ROCKY YEAR POSTED A PRETAX PROFIT OF ONE HUNDRED FORTY FOUR BILLION LIRE NINETY TWO point FIVE MILLION DOLLARS FOR THE FIRST HALF COMPARED WITH A MASSIVE PRETAX LOSS OF EIGHT HUNDRED FORTY BILLION LIRE A YEAR EARLIER CONSOLIDATED OPERATING PROFIT ROSE NINETEEN percent TO SEVEN HUNDRED EIGHTY NINE BILLION FROM SIX HUNDRED SIXTY FIVE BILLION LIRE WHILE CONSOLIDATED REVENUE SLIPPED TO ELEVEN point FOUR THREE ONE TRILLION LIRE SEVEN point THREE FOUR BILLION DOLLARS FROM ELEVEN point FOUR EIGHT NINE TRILLION LIRE ON A CONSOLIDATED BASIS THE FERRUZZI GROUP SAID IT EXPECTS TO SEE CONTINUED IMPROVEMENT IN THE SECOND HALF BUT IT ADDED THAT FOR THE FULL YEAR IT STILL EXPECTS TO SHOW LOSSES THE SPRAWLING CONGLOMERATE SAID THE IMPROVED RESULTS REFLECTED A STRONGER SHOWING IN MOST OF THE COMPANY'S ACTIVITIES THE STRONG PERFORMANCE OF THE CHEMICAL SECTOR UNDER THE UMBRELLA OF THE MONTEDISON COMPANY UNIT WAS HIGHLIGHTED AS THE LARGEST CONTRIBUTOR TO IMPROVED PROFITABILITY AT THE OPERATING LEVEL FERRUZZI SAID THAT GROSS OPERATING PROFIT IN THIS SECTOR SOARED EIGHTY SEVEN percent TO THREE HUNDRED NINETY FIVE BILLION LIRE IN ADDITION FERRUZZI POINTED TO REDUCED FINANCIAL CHARGES COST CONTAINMENT AND OTHER RESTRUCTURING MEASURES AS SOURCES OF THE IMPROVED FIRST HALF FIGURES A SPOKESMAN FOR THE DIETARY SUPPLEMENT INDUSTRY SAID HE WAS OPTIMISTIC THE HOUSE WILL APPROVE LEGISLATION LIMITING GOVERNMENT REGULATION OF VITAMINS AND OTHER SUPPLEMENTS THE PROSPECTS LOOK REASONABLY GOOD AT THIS MOMENT quote SAID GERALD KESSLER EXECUTIVE DIRECTOR OF THE NUTRITIONAL HEALTH ALLIANCE AND FORMER CHIEF EXECUTIVE OFFICER OF NATURE'S PLUS A SUPPLEMENT MANUFACTURER THE ALLIANCE INCLUDES MANUFACTURERS HEALTH FOOD STORES AND CONSUMERS A HOUSE AIDE INVOLVED IN NEGOTIATIONS BETWEEN MEMBERS OF THE HOUSE AND SENATE SAID THE CHANCES WERE FIFTY TO FIFTY THAT LAWMAKERS WOULD AGREE ON A BILL BEFORE CONGRESS GOES HOME NEXT WEEK NEGOTIATIONS HAVE INTENSIFIED IN RECENT DAYS AS MEMBERS OF THE HOUSE AND SENATE SCRAMBLE TO SEE IF A LAST MINUTE COMPROMISE CAN BE REACHED SENATOR ORRIN HATCH R. UTAH IS PUSHING A BILL APPROVED BY THE SENATE AUGUST THIRTEENTH THAT WOULD CURB FOOD AND DRUG ADMINISTRATION REGULATION OF SUPPLEMENTS A COALITION OF NATIONAL CONSUMER AND HEALTH ORGANIZATIONS INCLUDING THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST THE AMERICAN HEART ASSOCIATION AND CONSUMERS UNION STRONGLY OPPOSE THE LEGISLATION THEY SAY IT WOULD REDUCE PROTECTION AGAINST POTENTIALLY UNSAFE PRODUCTS AND MISLEADING PROMOTIONAL CLAIMS THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST ESTIMATED THAT THE DIETARY SUPPLEMENT INDUSTRY INCLUDING THE NUTRITIONAL HEALTH ALLIANCE HAS SPENT AT LEAST TWO point FIVE MILLION DOLLARS SINCE NINETEEN NINETY THREE LOBBYING CONGRESS FOR LEGISLATION IN THE HOUSE REPRESENTATIVE JOHN DINGELL D. MICHIGAN CHAIRMAN OF THE ENERGY AND COMMERCE COMMITTEE AND REPRESENTATIVE HENRY WAXMAN D. CALIFORNIA CHAIRMAN OF THE SUBCOMMITTEE ON HEALTH AND THE ENVIRONMENT HAVE OPPOSED EFFORTS TO WEAKEN GOVERNMENT REGULATION CITING SAFETY CONCERNS MR. KESSLER'S GROUP HAS ORGANIZED A MASSIVE LETTER WRITING CAMPAIGN TO PRESS FOR THE LEGISLATION THE F. D. A. IS ENFORCING REGULATIONS REQUIRING THAT ANY HEALTH CLAIMS ON SUPPLEMENTS BE BACKED UP BY SIGNIFICANT SCIENTIFIC AGREEMENT SUPPLEMENT MAKERS CONTEND THAT IS TOO HARSH A STANDARD THE HATCH BILL WOULD SET UP A COMMISSION THAT WOULD STUDY THE HEALTH CLAIMS ISSUE FOR TWO YEARS BEFORE DECIDING WHAT KINDS OF CLAIMS SHOULD BE PERMITTED THE LEGISLATION ALSO WOULD PUT THE BURDEN OF PROOF ON THE F. D. A. TO SHOW THAT A PRODUCT IS UNSAFE BEFORE IT'S TAKEN OFF THE MARKET IT WOULD CREATE AN OFFICE OF DIETARY SUPPLEMENTS AT THE NATIONAL INSTITUTES OF HEALTH TO ENCOURAGE RESEARCH ABOUT SUPPLEMENTS AS IF UNEMPLOYMENT WEREN'T ALREADY A BIG ENOUGH HEADACHE A NEW STUDY SUGGESTS THAT ONE OF THE MAIN STRATEGIES AGAINST JOBLESSNESS MAKING WAGES MORE quote FLEXIBLE COULD BE A WASTE OF TIME THE STUDY BASED ON STATISTICAL RESEARCH IN FIFTEEN COUNTRIES BY TWO BRITISH ECONOMISTS CONTRADICTS WHAT POLITICIANS BUSINESS LEADERS AND ECONOMISTS HAVE COME TO VIEW AS GOSPEL THAT EUROPEAN WAGES ARE MORE RIGID THAN THEIR AMERICAN AND JAPANESE COUNTERPARTS THAT IS LABOR COSTS REMAIN HIGH EVEN WHEN UNEMPLOYMENT RISES SOME ECONOMISTS BELIEVE THE FINDINGS COULD BE USED TO DISCREDIT POLICIES AIMED AT WEAKENING UNIONS LOOSENING LABOR REGULATIONS AND CUTTING UNEMPLOYMENT BENEFITS THE DEBATE IS PARTICULARLY CRUCIAL IN EUROPE WHICH HAS STRONG UNIONS AND MORE THAN HALF OF THE INDUSTRIALIZED WORLD'S THIRTY THREE MILLION UNEMPLOYED FACED WITH UNEMPLOYMENT OF MORE THAN ELEVEN percent GOVERNMENTS HERE HAVE BEEN ADOPTING THE CONSERVATIVE ARGUMENT THAT BY DRIVING DOWN WAGES THEY CAN GET PEOPLE BACK TO WORK BECAUSE COMPANIES WOULD BE ABLE TO AFFORD TO PAY MORE INDIVIDUALS BUT THE ECONOMISTS DAVID G. BLANCHFLOWER OF DARTMOUTH COLLEGE AND ANDREW J. OSWALD OF THE LONDON SCHOOL OF ECONOMICS FOUND THAT WAGE FLEXIBILITY SHOWS LITTLE VARIATION ACROSS THE GLOBE USING A COMPUTER ANALYSIS OF GOVERNMENT WAGE AND EMPLOYMENT DATA FOR MILLIONS OF WORKERS THEY FOUND THAT CONTRARY TO CONVENTIONAL WISDOM WESTERN EUROPE'S WAGES ARE NO MORE RIGID THAN U. S. OR ASIAN WAGES IN EACH COUNTRY THEY DISCOVERED A DOUBLING OF THE LOCAL UNEMPLOYMENT RATE WITHIN A REGION OR INDUSTRY IS ASSOCIATED WITH A DROP IN PAY OF ROUGHLY TEN percent WE'RE FINDING WAGE FLEXIBILITY IS THE SAME ALL OVER THE WORLD MR. OSWALD SAYS THE STUDY MORE OR LESS SWEEPS AWAY A WHOLE CLASS OF EXPLANATIONS FOR WHAT WE'RE SEEING IN THE WORLD quote HARVARD ECONOMIST RICHARD FREEMAN A VISITING SCHOLAR AT THE LONDON SCHOOL OF ECONOMICS SAID THE FINDING POTENTIALLY DEVASTATES THE ARGUMENT PARTICULARLY POPULAR IN BRITAIN THAT THE SOLUTION TO UNEMPLOYMENT IS UNION BUSTING PEOPLE HAVE VASTLY EXAGGERATED THE EUROPEAN NONRESPONSIVENESS ON THE WAGE FRONT HE SAID quote IF YOU THOUGHT THE MAJOR CAUSE OF HEAVY UNEMPLOYMENT WAS A BUNCH OF BAD UNIONS PUSHING WAGES UP THAT'S NOT TRUE GARY BURTLESS A SENIOR FELLOW AT THE BROOKINGS INSTITUTION IN WASHINGTON CALLED THE SIMILARITY IN WAGE RIGIDITY A REMARKABLE FINDING IF WHAT THEY FIND IS CONFIRMED IT WILL BE AN ASTONISHING DISCOVERY MR. BURTLESS SAID EVEN LIBERAL ECONOMISTS LIKE HIMSELF HAD COME TO THE CONCLUSION THAT EUROPE'S WAGE INFLEXIBILITY WAS TO BLAME FOR MAKING ITS UNEMPLOYMENT WORSE THAN AMERICA'S OR JAPAN'S ITS HIGH UNIONIZATION GENEROUS UNEMPLOYMENT INSURANCE AND LAWS MAKING IT COSTLY TO FIRE WORKERS HAD BEEN BLAMED FOR KEEPING LABOR COSTS ARTIFICIALLY HIGH AND SPURRING UNEMPLOYMENT THE REPORT DIDN'T OFFER ANY ALTERNATIVE THEORY OF WHAT IS CAUSING EUROPE'S HIGH UNEMPLOYMENT BUT MR. BLANCHFLOWER SAID THE FINDINGS SEEMED TO UNDERMINE THE REAGAN AND THATCHER STYLE OF LABOR POLICIES THATCHER CAME IN AND SAID WE'VE GOT TO SMASH THE UNIONS AND BASH UNEMPLOYMENT BENEFITS DOWN BUT THE SIMPLE ANSWER THAT IF YOU MAKE THE MARKET MORE FLEXIBLE EVERYTHING WILL GET SOLD IS NOT RIGHT quote MR. BLANCHFLOWER SAID CRITICS OF THAT REASONING HOWEVER SAID IT WOULD BE MISLEADING TO DISMISS INFLEXIBILITY AS THE CAUSE OF EUROPEAN UNEMPLOYMENT THE NEW REPORT DOESN'T COVER AREAS WHERE EUROPEAN LABOR TRULY IS MORE RIGID SUCH AS MOBILITY TURNOVER AND LONG TERM UNEMPLOYMENT IT OBVIOUSLY DOESN'T LOOK AT OTHER ASPECTS OF THE LABOR MARKET LIKE WILLINGNESS TO ADOPT NEW WORK PRACTICES OR WILLINGNESS OF ECONOMIES TO HAVE A WIDE SPREAD OF WAGE INEQUALITY SAID PATRICK MINFORD ECONOMICS PROFESSOR AT THE UNIVERSITY OF LIVERPOOL THE RESEARCH DOESN'T ADDRESS WHY EUROPE'S UNEMPLOYMENT REMAINS STUBBORNLY HIGH WHICH PROFESSOR MINFORD SAYS ITSELF IS EVIDENCE OF HIGH WAGE INFLEXIBILITY AND EVEN IF WAGES REACT TO UNEMPLOYMENT IN RELATIVELY THE SAME WAY AROUND THE WORLD ABSOLUTE LABOR COSTS ARE HIGHER IN EUROPE THE NEW REPORT DOESN'T MEAN THE WHOLE WAGE STRUCTURE ISN'T TOO HIGH FOR A WHOLE COUNTRY SAYS PRINCETON UNIVERSITY ECONOMIST DAVID CARD THE STUDY CONFLICTS WITH THE CONCLUSIONS OF MANY OTHER GROUPS THE BANK FOR INTERNATIONAL SETTLEMENTS IN ITS ANNUAL REPORT BLAMES quote THE INFLEXIBILITY OF LABOR MARKETS AND WAGE RIGIDITIES FOR THE EUROPEAN UNION'S UNEMPLOYMENT WOES HANS TIETMEYER PRESIDENT OF GERMANY'S BUNDESBANK ATTRIBUTED WESTERN GERMANY'S HIGH UNEMPLOYMENT IN A RECENT SPEECH TO STRUCTURAL quote PROBLEMS SUCH AS HIGH BARRIERS TO DISMISSAL AND BENEFITS THAT DECREASE THE INCENTIVE TO WORK ECONOMISTS PLAYED DOWN SOME OF THE STUDY'S FINDINGS THE RESEARCHERS THEMSELVES FOR EXAMPLE SAY THEIR WORK SHOWS THAT THE SO CALLED PHILLIPS CURVE THE CENTRAL ECONOMIC THEORY OF A TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT MAY BE INHERENTLY WRONG BUT OTHER ECONOMISTS DISMISSED THAT ARGUMENT AS MERE SEMANTICS THE BLANCHFLOWER AND OSWALD STUDY ALSO REFUTES A LONG HELD VIEW OF CLASSICAL LABOR ECONOMICS THAT VIEW OFTEN DISCREDITED OF LATE HOLDS THAT IF WAGES CLIMB MORE PEOPLE WILL WANT TO ENTER THE WORKFORCE CREATING A LARGER LABOR POOL AND THUS CAUSING HIGHER UNEMPLOYMENT THE NEW STUDY SHOWS THE OPPOSITE IN AREAS OF HIGH JOBLESSNESS WORKERS FEAR LOSING THEIR JOBS AND THEREFORE HAVE LESS CLOUT TO DEMAND HIGHER WAGES HIGHER UNEMPLOYMENT IS THEREFORE ASSOCIATED WITH LOWER WAGES THE FINDINGS THOUGH NARROW IN SCOPE COULD REINVIGORATE TRADE UNIONS BY ALLOWING EUROPEAN LABOR TO SHED PART OF ITS INFLEXIBLE LABEL EUROPE HAS HAD TO CARRY THAT INFLEXIBILITY CROSS FOR SOME TIME SAID BARRY MCCORMACK AN ECONOMIST WITH BRITAIN'S SOUTHAMPTON UNIVERSITY quote THAT'S SOMETHING RONALD REAGAN INVENTED FOR US TEN YEARS AGO THE AGRICULTURE DEPARTMENT ORDERED CORN GROWERS TO IDLE SEVEN point FIVE percent OF THEIR ACREAGE NEXT YEAR AS A BUMPER NINETEEN NINETY FOUR CROP IS EXPECTED TO LOWER PRICES AND BOOST FEDERAL FARM SUPPORT PAYMENTS THE ACREAGE SET ASIDE FIGURE WHICH APPLIES TO FARMERS GETTING GOVERNMENT SUBSIDIES IS TENTATIVE AGRICULTURE SECRETARY MIKE ESPY WILL MAKE A FINAL DECISION ON NOVEMBER FIFTEENTH WHEN THE SIZE OF THIS YEAR'S CORN HARVEST IS BETTER KNOWN WE'RE EXPECTING A BUMPER CROP TO A RECORD CROP SAID EUGENE MOOS UNDERSECRETARY OF AGRICULTURE FOR COMMODITY PROGRAMS A YEAR AGO MR. ESPY SET AN INITIAL FIVE percent CORN ACREAGE REDUCTION FOR NINETEEN NINETY FOUR THEN IN NOVEMBER NINETEEN NINETY THREE HE DECIDED NOT TO ORDER ANY SET ASIDE FEARING TIGHT SUPPLIES BECAUSE OF THE NINETEEN NINETY THREE WEATHER DISASTERS BUT GROWING CONDITIONS TURNED OUT TO BE UNEXPECTEDLY GOOD THIS YEAR THE DEPARTMENT LAST MONTH ESTIMATED THAT THE NINETEEN NINETY FOUR CORN HARVEST WOULD REACH NINE point TWO SIX BILLION BUSHELS FORTY FIVE percent ABOVE LAST YEAR'S FLOOD STRICKEN CROP AND IT IS EXPECTED THAT FAVORABLE WEATHER COULD BOOST THAT FORECAST TO A RECORD NINE point FIVE BILLION BUSHELS WHEN THE DEPARTMENT'S NEXT CROP REPORT IS ISSUED ON OCTOBER TWELFTH THE DEPARTMENT PROJECTS NINETEEN NINETY FOUR TO NINETEEN NINETY FIVE AVERAGE CORN PRICES OF ONE DOLLAR AND NINETY FIVE CENTS TO TWO DOLLARS AND THIRTY FIVE CENTS PER BUSHEL DOWN FROM TWO DOLLARS AND FIFTY CENTS A BUSHEL FOR THE NINETEEN NINETY THREE TO NINETEEN NINETY FOUR SEASON MR. ESPY ORDERED NO NINETEEN NINETY FOUR REDUCTION FOR WHEAT AND SEVERAL SMALLER VOLUME CROPS BECAUSE SUPPLIES ARE AT LOW LEVELS A FEDERAL JUDGE IN DELAWARE ORDERED AMOCO CORPORATION TO PAY MOBIL CORPORATION ABOUT EIGHTY FIVE MILLION DOLLARS IN ROYALTIES AND INTEREST AFTER FINDING THAT AMOCO INFRINGED ON A MOBIL PATENT THE SUIT WHICH WAS FILED IN NINETEEN EIGHTY THREE INVOLVED MOBIL'S PROPRIETARY ZEOLITE CATALYST WHICH IS USED IN THE REFINING PROCESS A MOBIL SPOKESMAN SAID AN ATTORNEY FOR FAIRFAX VIRGINIA BASED MOBIL SAID THE JUDGE RULED THAT AMOCO MUST PAY FORTY EIGHT MILLION DOLLARS IN ROYALTIES WHILE INTEREST ON THE PENALTY WOULD LIKELY BE BETWEEN THIRTY SIX MILLION DOLLARS AND THIRTY SEVEN MILLION DOLLARS MOBIL HAD ASKED FOR A LARGER ROYALTY AND MAY APPEAL THE JUDGE'S DECISION THE ATTORNEY SAID AN AMOCO SPOKESMAN SAID THE COMPANY WAS PLEASED WITH HOW THE JUDGE CHOSE TO CALCULATE THE ROYALTY AND SAID THE PROCEEDINGS FOUND THE INFRINGEMENT TO BE UNWILLFUL HOWEVER HE SAID THE CHICAGO BASED COMPANY IS ALSO STUDYING WHETHER TO APPEAL THE RULING AN EIGHTY FIVE MILLION DOLLAR PAYMENT WOULDN'T HAVE A MATERIAL EFFECT ON AMOCO'S FINANCIAL RESULTS THE SPOKESMAN SAID THE NEW YORK STOCK EXCHANGE ADDED FIVE COMPANIES INCLUDING THREE INITIAL PUBLIC OFFERINGS TO ITS ROSTER OF LISTED STOCKS WHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS BEGAN TRADING EIGHT COMPANIES SEVEN OF WHICH WERE INITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE HAD ONE NEW LISTING THE BIG BOARD BEGAN TRADING IN THREE INITIAL OFFERINGS CZECH REPUBLIC FUND INCORPORATED A NEW YORK BASED CLOSED END FUND UNDER CRF ZEIGLER COAL HOLDING COMPANY FAIRVIEW HEIGHTS ILLINOIS AN OPERATOR OF COAL MINES ZEI AND STERILE CONCEPTS HOLDINGS INCORPORATED A RICHMOND VIRGINIA SURGICAL SUPPLIER SYS ALSO JOINING THE BIG BOARD WERE MID ATLANTIC MEDICAL SERVICES INCORPORATED A ROCKVILLE MARYLAND HOLDING COMPANY WHOSE SUBSIDIARIES PROVIDE MANAGED HEALTH CARE SERVICES UNDER MME PREVIOUSLY TRADED OVER THE COUNTER AND NIPPON TELEGRAPH and TELEPHONE CORPORATION TOKYO WHICH JOINS AS A NON U. S. LISTING UNDER N. T. T. THE NASDAQ STOCK MARKET BEGAN TRADING SEVEN INITIAL OFFERINGS CORPORATE EXPRESS INCORPORATED AN AURORA COLORADO OFFICE SUPPLY COMPANY UNDER CEXP WELCOME HOME INCORPORATED A WILMINGTON N. C. HOME FURNISHINGS RETAILER WELC BABY SUPERSTORE INCORPORATED GREENVILLE N. C. UNDER BSST RETAILER OF NONFOOD BABY AND CHILDREN'S PRODUCTS I. P. C. INFORMATION SYSTEMS INCORPORATED A NEW YORK TELECOMMUNICATIONS COMPANY IPCI MATTSON TECHNOLOGY INCORPORATED A FREMONT CALIFORNIA MAKER OF SEMICONDUCTOR FABRICATING EQUIPMENT MTSN PROTECTION ONE INCORPORATED A PORTLAND OREGON SECURITY ALARM COMPANY ALRM AND METROLOGIC INSTRUMENTS INCORPORATED A BLACKWOOD N. J. FIRM THAT MAKES BAR CODE SCANNING EQUIPMENT MTLG NASDAQ ALSO BEGAN TRADING AMERICAN DEPOSITARY SHARES OF BUSINESS OBJECTS S. A. A FRENCH SOFTWARE TOOLS COMPANY UNDER BOBJY THE AMEX BEGAN TRADING PUT AND CALL OPTIONS ON THE LISTED STOCK OF CASE CORPORATION A RACINE WISCONSIN FARM EQUIPMENT MANUFACTURER UNDER CSE THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING PITTENCRIEFF COMMUNICATIONS INCORPORATED A MOBILE WIRELESS SERVICE PROVIDER AND APPLE SOUTH INCORPORATED WHICH OPERATES ABOUT SEVENTY FIVE RESTAURANTS THE C. B. O. E. WILL BEGIN TRADING OPTIONS ON NETMANAGE INCORPORATED OCTOBER FOURTH THE PACIFIC STOCK EXCHANGE WILL BEGIN TRADING OPTIONS ON NETMANAGE INCORPORATED ON OCTOBER FOURTH MAZDA MOTOR OF AMERICA INCORPORATED SAID IT WAS RAISING PRICES ON ITS NINETEEN NINETY FIVE LINEUP OF MIDSIZE SIX HUNDRED TWENTY SIX SEDANS BY FOUR HUNDRED FIFTY DOLLARS TO ONE THOUSAND ONE HUNDRED FIFTY DOLLARS A VEHICLE THE AUTO MAKER'S BASE LEVEL SIX HUNDRED TWENTY SIX D. X. SEDAN WILL START AT FOURTEEN THOUSAND SEVEN HUNDRED NINETY FIVE DOLLARS UP THREE percent FROM ITS YEAR EARLIER PRICE ITS TOP OF THE LINE SIX HUNDRED TWENTY SIX EX SEDAN WILL START AT TWENTY TWO THOUSAND SIX HUNDRED NINETY FIVE DOLLARS UP FIVE percent FROM ITS YEAR EARLIER PRICE MAZDA SAID THE SIX HUNDRED TWENTY SIX PRICES ROSE BY A SALES WEIGHTED AVERAGE OF TWO HUNDRED TWELVE DOLLARS OR ONE point TWO percent AND CITED PRODUCTION AND DISTRIBUTION COSTS AND MARKET CONDITIONS AS THE CAUSES BEHIND THE INCREASES SEPARATELY TOYOTA MOTOR CORPORATION'S LEXUS DIVISION SAID IT WAS HOLDING THE PRICE OF ITS L. S. FOUR HUNDRED LUXURY SEDAN PRICING THE NINETEEN NINETY FIVE MODEL TO START AT FIFTY ONE THOUSAND TWO HUNDRED DOLLARS THE SAME PRICE AS A YEAR AGO LEXUS OFFICIALS SAID COST CONTROL MEASURES HELPED AVERT A PRICE INCREASE HOWEVER EARLIER THIS YEAR THE DIVISION DID ANNOUNCE PRICE INCREASES FOR THE REST OF ITS NINETEEN NINETY FIVE MODELS AEROVIAS DE MEXICO S. A. MEXICO'S LARGEST AIRLINE SAID THAT IT IS IN DEFAULT ON SOME DEBTS AND THAT FORMER CHIEF EXECUTIVE OFFICER GERARDO DE PREVOISIN MAY HAVE FLED THE COUNTRY CREDITORS AND INDUSTRY ANALYSTS SAID AEROMEXICO AS THE AIRLINE IS KNOWN FELL VICTIM TO ITS OVERLY AGGRESSIVE EXPANSION PLANS AND TO INEFFICIENT MANAGEMENT THEY ALSO SAID AEROMEXICO WAS HURT BY INCREASED COMPETITION FROM U. S. CARRIERS EXPANDING OPERATIONS INTO MEXICO ANALYSTS SAID THIS IS THE SAME KIND OF COMPETITION THAT HAS CAUSED SUCH PROBLEMS FOR BRAZILIAN NATIONAL CARRIER VARIG AND THAT SHOWS WHAT CAN HAPPEN TO LATIN AMERICAN COMPANIES THAT UNDERESTIMATE THE EFFECTS OF FREER TRADE IN THE REGION LATE LAST WEEK AEROMEXICO SAID IT DISCOVERED ABOUT FIFTY MILLION DOLLARS IN PREVIOUSLY UNKNOWN LIABILITIES AND WOULDN'T BE ABLE TO PAY WHAT ISN'T CLEAR IS IF AEROMEXICO IS SERVICING SOME TWO BILLION DOLLARS IN OTHER LIABILITIES INCLUDING TENS OF MILLIONS OF DOLLARS IN DIRECT LOANS FROM MEXICO'S LARGEST BANKS IN ANY CASE MEXICAN BANK CREDITORS HAVE VIRTUALLY SEIZED CONTROL OF THE COMPANY AIRCRAFT LEASING COMPANIES THAT HAVE CONTRACTS WITH AEROMEXICO ARE ALSO LIKELY TO FACE LARGE LOSSES INVESTORS ARE SEEING THEIR EQUITY IN THE COMPANY DROP ALMOST DAILY ON FRIDAY SHARES OF AEROMEXICO WERE QUOTED AT ONE PESO OR ABOUT TWENTY NINE CENTS DOWN FIFTY FIVE percent ON THE YEAR AMONG THOSE INVESTORS ARE SUCH BIG NAMES AS CHASE MANHATTAN BANK A SPOKESMAN FOR CHASE SAID THE BANK IS A MINORITY SHAREHOLDER IN GRUPO FALCON WHICH IN TURN IS A MINORITY SHAREHOLDER IN AEROMEXICO NO ONE HAS ALLEGED ANY WRONGDOING BY MR. PREVOISIN AN ORIGINAL INVESTOR IN THE AIRLINE'S PRIVATIZATION WHO WAS ASKED TO STEP DOWN BY CREDITOR BANKS EARLY LAST MONTH STILL ON FRIDAY A SPOKESMAN FOR AEROMEXICO SAID MR. PREVOISIN MAY HAVE LEFT THE COUNTRY AND LOCAL NEWS REPORTS SAID THE BANKS MAY SEIZE HIS EQUITY IF HE HAS FLED HE WOULD BE THE SECOND PROMINENT MEXICAN EXECUTIVE TO DO SO JUST IN THE PAST FEW WEEKS BANKER AND BANANA MAGNATE CARLOS CABAL PENICHE LEFT THE COUNTRY IN EARLY SEPTEMBER AFTER A WARRANT WAS ISSUED FOR HIS ARREST ON CHARGES OF ILLEGAL FINANCIAL DEALINGS AEROMEXICO'S COLLAPSE FOLLOWS A SERIES OF MERGERS THAT THE AIRLINE FAILED TO CONSOLIDATE INTO PROFITABLE OPERATIONS MR. PREVOISIN ENJOYED SUCCESSFUL YEARS WITH THE CARRIER WHEN HE AND AN INVESTOR GROUP BOUGHT THE AIRLINE OUT OF BANKRUPTCY FROM THE MEXICAN GOVERNMENT WHILE COMPETITOR MEXICANA DE AVIACION BET ON OVERSEAS ROUTES IN THE EARLY NINETEEN NINETIES AEROMEXICO BET CORRECTLY ON A PICKUP IN DOMESTIC TRAVEL CASH ROLLED INTO AEROMEXICO AND IT WAS ABLE TO PLACE STOCK AND BOND ISSUES WITH INTERNATIONAL INVESTORS THEN IN EARLY NINETEEN NINETY THREE AEROMEXICO BOUGHT A CONTROLLING STAKE IN MEXICANA THAT'S WHEN THE REAL PROBLEMS STARTED quote SAYS ROBERT BOOTH HEAD OF AVIATION MANAGEMENT SERVICES A MIAMI BASED CONSULTING FIRM THEY TRIED TO RESTRUCTURE MEXICANA BUT THEY DIDN'T DO ENOUGH SOON ENOUGH EVEN WITH MEXICANA PROVING DIFFICULT TO CONSOLIDATE AEROMEXICO THEN BOUGHT A STAKE IN AEROPERU ANOTHER CARRIER THAT WAS LOSING MONEY MEANWHILE AEROMEXICO'S AND MEXICANA'S MARKET SHARE WAS CHIPPED AWAY BY UPSTART TAESA AIRLINES WHICH SPECIALIZES IN LEISURE TRAVEL ROUTES AND U. S. CARRIERS STEPPED UP THE PRESSURE ON U. S. MEXICO ROUTES NEWS CORPORATION SAID IT PLANS TO ISSUE A NEW CLASS OF STOCK WITH LIMITED VOTING RIGHTS THAT COULD MAKE IT EASIER FOR THE COMPANY TO MAKE ACQUISITIONS OR RAISE CAPITAL WITH A STRATEGIC PARTNER WITHOUT TAKING ON ADDITIONAL DEBT OR DILUTING THE CONTROL OF CHAIRMAN RUPERT MURDOCH THE GLOBAL MEDIA CONCERN'S BIGGEST SHAREHOLDER THE SYDNEY BASED COMPANY SAID IN A STATEMENT FRIDAY FROM NEW YORK THAT IT PLANS TO ISSUE LIMITED VOTING PREFERENCE SHARES UNLIKE OTHER PREFERENCE SHARES NEWS CORPORATION HAS ISSUED IN THE PAST THAT SERVED BASICALLY AS DEBT INSTRUMENTS THE NEW CLASS OF STOCK CARRIES RESTRICTED RIGHTS THAT ENTITLE HOLDERS TO VOTE ONLY IN CERTAIN CIRCUMSTANCES SUCH AS DISSOLVING THE COMPANY DIRECTORS OF NEWS CORPORATION PLAN TO ISSUE ONE BONUS OR FREE SHARE OF THE NEW STOCK FOR EVERY TWO NEWS CORPORATION ORDINARY OR COMMON SHARES CURRENTLY HELD THE FREE SHARES WILL BE ISSUED TO HOLDERS OF RECORD NOVEMBER ELEVENTH IN THE CASE OF THE COMPANY'S AMERICAN DEPOSITARY SHARES WHICH CURRENTLY REPRESENT EIGHT ORDINARY NEWS CORPORATION SHARES NEWS CORPORATION DIRECTORS SAID HOLDERS WILL RECEIVE NEW STOCK THAT REPRESENTS FOUR LIMITED VOTING PREFERENCE SHARES ON NOVEMBER FOURTEENTH DIRECTORS SAID THEY WILL SPLIT ALL OUTSTANDING AMERICAN DEPOSITARY SHARES ON A ONE FOR ONE BASIS THUS MAKING EACH ADS REPRESENT FOUR ORDINARY NEWS CORPORATION SHARES THE NEW CLASS OF LIMITED VOTING STOCK WILL BE LISTED SEPARATELY FROM THE COMPANY'S COMMON SHARES ON STOCK EXCHANGES IN AUSTRALIA AND LONDON THEY ALSO WILL BE TRADED ON THE NEW YORK STOCK EXCHANGE IN THE FORM OF DEPOSITARY SHARES ARTHUR SISKIND NEWS CORPORATION'S EXECUTIVE VICE PRESIDENT AND GROUP GENERAL COUNSEL SAID THE COMPANY HOPED TO CREATE A SECURITY THAT GIVES US THE POTENTIAL TO DO ACQUISITIONS OR RAISE CAPITAL HE ADDED THAT RAISING CAPITAL COULD BE DONE IN CONNECTION WITH THE CREATION OF A STRATEGIC ALLIANCE WITHOUT DISTURBING THE CURRENT VOTING STRUCTURE OF THE COMPANY HE SAID THE COMPANY HAD NO CURRENT PLANS FOR ACQUISITIONS OR THE RAISING OF CAPITAL THROUGH THE NEW SECURITIES HOWEVER HE SAID THE NEW CLASS OF STOCK COULD ALLOW OTHER COMPANIES TO INVEST IN NEWS CORPORATION BY PURCHASING THE NEW SECURITY THE NEW ISSUE WILL BE quote UNPOPULAR WITH SHAREHOLDERS PREDICTED TERRY POVEY WHO TRACKS NEWS CORPORATION FOR STOCK BROKERAGE FIRM JAMES CAPEL and COMPANY IN LONDON IT WILL BE TAKEN AS A SIGNAL THAT A MAJOR ACQUISITION IS POSSIBLE PROBABLY IN THE U. S. HE SAID SUCH AN ACQUISITION MIGHT TAKE YEARS TO PRODUCE GOOD RETURNS HE ADDED THE NEW SHARES CAN BE ISSUED EVEN IN VERY LARGE TRANSACTIONS WITHOUT DILUTING THE OWNERSHIP OF THE MURDOCH FAMILY WHICH CURRENTLY CONTROLS ABOUT THIRTY percent OF NEWS CORPORATION ON A FULLY DILUTED BASIS THAT IN TURN WILL ALLOW NEWS CORPORATION TO GET BIGGER BY FORMING STRATEGIC ALLIANCES THROUGH ISSUING THE NEW CLASS OF STOCK WITHOUT THREATENING NEWS CORPORATION'S CURRENT MANAGEMENT IT ALSO GIVES THE COMPANY THE OPTION TO MAKE BIG ACQUISITIONS WITHOUT BORROWING ALTHOUGH NEWS CORPORATION HAS CUT ITS DEBT FROM A PEAK OF TWELVE BILLION DOLLARS AUSTRALIAN DOLLARS EIGHT point EIGHT SEVEN BILLION U. S. DOLLARS IN DECEMBER NINETEEN NINETY IT STILL OWES SEVEN point SEVEN BILLION AUSTRALIAN DOLLARS MOSTLY IN THE FORM OF LONG TERM DEBT SECURITIES IN THE HANDS OF INVESTORS STILL WHILE THE NEW ISSUE WON'T DILUTE THE VOTING CAPACITY OF EXISTING SHAREHOLDERS HAVING MORE STOCK ON ISSUE WILL DILUTE THE COMPANY'S EARNINGS PER SHARE TO SWEETEN THE TRANSACTION NEWS CORPORATION IS OFFERING A BIG BOOST IN THE COMPANY'S ANNUAL DIVIDEND IN ADDITION TO THE PALTRY THREE AUSTRALIAN CENTS A SHARE THE COMPANY HAS PAID THE PAST TWO YEARS NEWS CORPORATION PROPOSES TO PAY AN ADDITIONAL SEVEN point FIVE CENTS ANNUALLY ON EACH LIMITED VOTING PREFERENCE SHARE THAT WILL COST THE COMPANY AN EXTRA SIXTY NINE MILLION AUSTRALIAN DOLLARS A YEAR IN DIVIDENDS WHILE THE TWO DIVIDENDS COMBINED EFFECTIVELY WOULD DOUBLE NEWS CORPORATION'S DIVIDEND YIELD TO ZERO point EIGHT percent BASED ON A STOCK PRICE OF EIGHT AUSTRALIAN DOLLARS AND SIXTY CENTS IT'S FAR LESS THAN THE OVERALL AUSTRALIAN STOCK MARKET WHICH IS YIELDING AROUND THREE percent STANDARD and POOR'S RATINGS GROUP LOWERED ITS RATING ON AMERICAN LIFE HOLDING COMPANY'S PREFERRED STOCK AND ALSO REDUCED THE CLAIMS PAYING ABILITY RATING OF A RELATED OPERATING UNIT S. and P. LOWERED THE PREFERRED STOCK RATING TO SINGLE B. PLUS FROM TRIPLE B. MINUS IT ALSO LOWERED THE CLAIMS PAYING RATING ON AMERICAN LIFE and CASUALTY INSURANCE COMPANY DES MOINES IOWA THE HOLDING COMPANY'S OPERATING UNIT TO SINGLE A MINUS FROM SINGLE A THE DOWNGRADE FOLLOWS COMPLETION OF THE ACQUISITION OF THE COMPANY BY CONSECO CAPITAL PARTNERS TWO L. P. AN INVESTMENT PARTNERSHIP MANAGED BY CONSECO INCORPORATED CARMEL INDIANA S. and P. SAID THE DOWNGRADES REFLECT THE COMPANY'S AGGRESSIVE CAPITAL STRUCTURE quote AND WEAKENED DEBT AND PREFERRED COVERAGE RATIOS STEMMING FROM THE ACQUISITION AS A RESULT OF THE ACQUISITION AMERICAN LIFE HOLDING HAS THREE HUNDRED TWENTY MILLION DOLLARS IN NEW DEBT A BLEND OF SUBORDINATED NOTES AND BANK LOANS S. and P. SAID S. and P. SAID THE NEGATIVE FACTORS ARE OFFSET TO SOME DEGREE BY THE COMPANY'S quote STRONG OPERATING PERFORMANCE SOUND DISTRIBUTION NETWORK AND A HIGH QUALITY INVESTMENT PORTFOLIO A SPOKESMAN FOR CONSECO SAID WE DISAGREE WITH THE RATING BUT IT WAS NOT UNEXPECTED RAYTHEON COMPANY LEXINGTON MASSACHUSETTS SAID IT AGREED TO PURCHASE THE ASSETS OF UNIMAC COMPANY A CLOSELY HELD MAKER OF WASHING MACHINES TERMS WEREN'T DISCLOSED RAYTHEON SAID UNIMAC'S NINETEEN NINETY FOUR SALES ARE EXPECTED TO REACH SEVENTY MILLION DOLLARS AND THE COMPANY IS EXPECTED TO REMAIN PROFITABLE RAYTHEON AN ELECTRONICS ENGINEERING CONSTRUCTION AVIATION AND APPLIANCE CONCERN SAID UNIMAC MAKES COMMERCIAL FRONT LOAD WASHERS AT A MARIANNA FLORIDA FACTORY THAT EMPLOYS FIVE HUNDRED THIRTY PEOPLE UNIMAC WILL BECOME PART OF RAYTHEON'S SPEED QUEEN UNIT AND IS TO COMPLEMENT ITS LAUNDRY PRODUCT LINE ARCH COMMUNICATIONS GROUP INCORPORATED SAID IT AGREED TO PURCHASE TWO CLOSELY HELD PAGING CONCERNS FOR ABOUT TWENTY TWO MILLION DOLLARS IN CASH AND COMMON STOCK ARCH SAID ONE OF THE CONCERNS BEEPER COMPANY OPERATES IN TEXAS GEORGIA AND CALIFORNIA THE OTHER COMPANY GROOME ENTERPRISES INCORPORATED DOES BUSINESS IN LOUISIANA UNDER THE NAME FIRST PAGE THE ACQUISITIONS WILL ADD ABOUT SEVENTY THOUSAND PAGING UNITS TO ARCH'S SUBSCRIBER BASE WHICH HAD MORE THAN FOUR HUNDRED THOUSAND PAGING UNITS IN SERVICE AS OF AUGUST THIRTY FIRST THE COMPANY SAID THE PURCHASES ARE SUBJECT TO REGULATORY APPROVAL AND OTHER CONDITIONS AND ARE EXPECTED TO CLOSE IN THREE TO FOUR MONTHS ARCH SAID ARCH SAID IT WILL PURCHASE THE TWO COMPANIES FOR ELEVEN point SIX MILLION DOLLARS CASH AND SHARES OF ARCH COMMON STOCK VALUED AT ABOUT TEN point FOUR MILLION DOLLARS THE PRICES ARE SUBJECT TO ADJUSTMENT DEPENDING ON WHETHER THE ACQUIRED PROPERTIES MEET CERTAIN CRITERIA AND ON THE VALUE OF ARCH'S STOCK AT CLOSING THE COMPANY ADDED AS OF SEPTEMBER THIRTIETH ARCH HAD ABOUT SEVEN point TWO MILLION COMMON SHARES OUTSTANDING THE COMPANY SAID ITS PENDING ACQUISITIONS ARE EXPECTED TO RESULT IN THE ISSUANCE OF ABOUT ONE point ONE MILLION NEW SHARES ARCH SAID CASH FOR THE PURCHASES WILL BE PROVIDED BY A ONE HUNDRED SEVENTY FIVE MILLION DOLLAR REVOLVING CREDIT FACILITY ANNOUNCED LAST MONTH ARCH PROVIDES WIRELESS MESSAGING SERVICES BOMBARDIER INCORPORATED SAID A CANADIAN CONSORTIUM IT LEADS WAS SELECTED TO PROVIDE A PASSENGER LIGHT RAIL SYSTEM FOR KUALA LUMPUR MALAYSIA UNDER A CONTRACT ESTIMATED AT SEVEN HUNDRED SIXTEEN MILLION DOLLARS BOMBARDIER SAID IT RECEIVED A LETTER OF INTENT FOR THE CONTRACT FROM PROJEK USAHASAMA TRANSIT RINGAN AUTOMATIK SDN. B. H. D. PUTRA A UNIT OF MALAYSIA'S RENONG GROUP IS TO BUILD THE GUIDEWAY AND STATIONS UNDER A CONCESSION AGREEMENT EXPECTED TO BE EXECUTED SOON WITH THE MALAYSIAN GOVERNMENT BOMBARDIER OF MONTREAL WILL SUPPLY SEVENTY RAIL CARS AND RELATED EQUIPMENT IT VALUED ITS SHARE OF THE CONSORTIUM'S CONTRACT AT FOUR HUNDRED FORTY FIVE MILLION DOLLARS THE NINETEEN MILE SYSTEM WILL LINK KUALA LUMPUR'S WESTERN AND EASTERN SUBURBS TO THE CITY CORE AND IS SCHEDULED TO BE READY FOR THE NINETEEN NINETY EIGHT COMMONWEALTH GAMES THE SYSTEM WILL BE MOSTLY ELEVATED IN A DESIGN BASED ON THE SKYTRAIN SYSTEM IN VANCOUVER BRITISH COLUMBIA SEPARATELY BOMBARDIER SAID GREAT CHINA AIRLINES OF TAIWAN BOUGHT FIVE OF BOMBARDIER'S DE HAVILLAND DASH EIGHT SERIES THREE HUNDRED TURBOPROP AIRCRAFT FOR ABOUT SIXTY THREE MILLION DOLLARS IN MONTREAL STOCK EXCHANGE TRADING BOMBARDIER CLOSED AT TWENTY TWO point SIX TWO FIVE CANADIAN DOLLARS SIXTEEN U. S. DOLLARS AND EIGHTY FIVE CENTS A SHARE UP FIFTY CANADIAN CENTS QUAKER STATE CORPORATION WILL START TO GARNER PROFIT AS EARLY AS NEXT YEAR FROM THE MOTOR OIL PRODUCT IT INTRODUCED THIS WEEK ITS SENIOR EXECUTIVES SAY ROBERT COHEN EXECUTIVE VICE PRESIDENT OF MARKETING FOR THIS PRODUCER AND MARKETER OF BRANDED MOTOR OIL AND LUBRICANTS AND OTHER PRODUCTS AND SERVICES SAID IN AN INTERVIEW THAT MARKETING AND ADVERTISING COSTS INVOLVED IN THE START UP OF THE NEW PRODUCT WHICH IS GEARED FOR NONCAR HEAVY DUTY VEHICLES WOULD EAT UP PROFIT FROM THIS LINE THROUGH AT LEAST THE END OF THE YEAR WE'RE HOPING TO BREAK EVEN ON IT THIS YEAR quote MR. COHEN SAID WE EXPECT TO MAKE MONEY ON IT NEXT YEAR ANALYSTS WHO FOLLOW QUAKER STATE AGREE WITH MR. COHEN'S PROJECTIONS TOM BROWN ANALYST FOR INVESTMENT FIRM RUTHERFORD BROWN and CATHERWOOD INCORPORATED IN PHILADELPHIA SAYS THE NEW MOTOR OIL CALLED FOUR BY FOUR COULD ADD A NICKEL TO PER SHARE EARNINGS DURING NINETEEN NINETY FIVE MR. BROWN PROJECTS A NET OF ONE DOLLAR TO ONE DOLLAR AND FIVE CENTS NEXT YEAR INCLUDING THE FIVE CENTS RELATED TO THE FOUR BY FOUR PRODUCT FOR NINETEEN NINETY FOUR SOME ANALYSTS SEE QUAKER STATE EARNING SIXTY FIVE CENTS TO SEVENTY CENTS A SHARE LAST YEAR THE COMPANY REPORTED NET INCOME OF THIRTEEN point SEVEN MILLION DOLLARS OR FIFTY CENTS A SHARE FOR NINETEEN NINETY TWO THE COMPANY POSTED A HUGE LOSS OF NINETY THREE point NINE MILLION DOLLARS INCLUDING WHOPPING ONE TIME CHARGES OF ONE HUNDRED THREE point THREE MILLION DOLLARS RELATED TO DISCONTINUING ITS COAL OPERATIONS AND CHANGES IN ACCOUNTING MR. COHEN SAYS QUAKER STATE EXPECTS TO SELL ABOUT SIX MILLION GALLONS OF FOUR BY FOUR NEXT YEAR INCREASING OVERALL SALES OF MOTOR OIL BY ABOUT TEN percent THROUGH THE END OF THE YEAR THE COMPANY SAYS IT WILL LIKELY SELL ONE point FIVE MILLION GALLONS OF THE PRODUCT THE NEW MOTOR OIL WILL BE PRICIER THAN REGULAR MOTOR OIL WITH A BOTTLE COSTING ONE DOLLAR AND SEVENTY FIVE CENTS TO TWO DOLLARS AND ZERO CENTS REGULAR MOTOR OIL RUNS ABOUT ONE DOLLAR TO ONE DOLLAR AND TWENTY FIVE CENTS A BOTTLE MR. COHEN SAYS SEPARATELY QUAKER STATE SAID IT COMPLETED ITS NINETY MILLION DOLLAR ACQUISITION OF SPECIALTY OIL COMPANIES SHREVEPORT LOUISIANA CREATIVE BIOMOLECULES INCORPORATED SAID IT SIGNED A THREE YEAR CONTRACT WITH BIOGEN INCORPORATED VALUED AT AS MUCH AS EIGHTEEN MILLION DOLLARS TO MAKE EXPERIMENTAL DRUGS FOR BIOGEN THE HOPKINTON MASSACHUSETTS BIOTECHNOLOGY CONCERN SAID THE PROTEIN BASED DRUGS WOULD BE MADE AT ITS LEBANON N. H. FACILITY FOR USE IN CLINICAL TRIALS BY BIOGEN A BIOTECHNOLOGY CONCERN BASED IN CAMBRIDGE MASSACHUSETTS A BIOGEN SPOKESWOMAN SAID THE DRUGS INVOLVED WILL BE ONES IN OUR RESEARCH PIPELINE CREATIVE SAID THE AGREEMENT ALSO CALLS FOR BIOGEN TO INVEST quote SEVERAL MILLION DOLLARS TO ADD CAPACITY TO THE NEW HAMPSHIRE PLANT NUMAC ENERGY INCORPORATED SAID IT AGREED TO SELL ITS ONLY PIPELINE ASSET TO A UNIT OF FEDERATED PIPE LINES LIMITED FOR AN UNDISCLOSED PRICE NUMAC A CALGARY OIL AND GAS PRODUCER SAID THE FIVE HUNDRED SIX MILE TWELVE INCH DIAMETER PIPELINE TRANSPORTS ABOUT THIRTY SIX THOUSAND BARRELS A DAY OF CRUDE OIL FROM FIELDS IN NORTHEAST BRITISH COLUMBIA TO PRINCE GEORGE AND KAMLOOPS IN THE PROVINCE'S INTERIOR IT SAID THE OIL IS USED IN BRITISH COLUMBIA AND WASHINGTON STATE PETROLEUM REFINERIES FEDERATED A CALGARY PIPELINE COMPANY IS JOINTLY OWNED BY HOME OIL COMPANY AND IMPERIAL OIL LIMITED IN THE UNIVERSITY OF ARIZONA'S FOOTBALL MEDIA GUIDE THERE IS A WISTFUL SECTION TITLED ARIZONA GAMES IN THE ROSE BOWL STADIUM IT LISTS NINE SUCH CONTESTS BEGINNING WITH ONE AGAINST OCCIDENTAL IN NINETEEN TWENTY NINE BUT IT DOESN'T TAKE MUCH OF A SPORTS HISTORIAN TO RECOGNIZE THAT NONE WAS THE ROSE BOWL GAME SUCH HAS BEEN THE HISTORY OF THE GRID IRON REPRESENTATIVES OF THE DESERT FLOWER OF LEARNING BASED HERE LABORING IN THE NATION'S LOWER LEFT HAND CORNER FINISHING MANY OF THEIR HOME GAMES AFTER SUNDAY NEWSPAPERS IN THE EAST AND SENSIBLE PEOPLE EVERYWHERE HAVE GONE TO BED THEY PLAY AT NIGHT TO AVOID THE MIDDAY HEAT AND BEARING AN ATHLETIC MOTTO BEAR DOWN quote BETTER SUITED TO A GROUP OF CHICAGO PROFESSIONALS THAN TO SQUADS NICKNAMED THE WILDCATS THEY'VE BEEN THE TEAM THAT TIME AND THE POLLS FORGOT PAC TEN MEMBERS SINCE NINETEEN SEVENTY EIGHT ARIZONA IS THE ONLY CONFERENCE SCHOOL NEVER TO HAVE PLAYED IN PASADENA ON NEW YEAR'S DAY AND ITS FORAYS INTO THE NATIONAL RANKING ELITE HAVE BEEN FEW TOPPED BY LAST YEAR'S NUMBER TEN IN THE ASSOCIATED PRESS VOTING WE DON'T HAVE THAT OLD TEAM FROM NINETEEN THIRTY FIVE THAT PEOPLE REMEMBER OR FORTY FIVE FIFTY FIVE OR SIXTY FIVE FOR THAT MATTER THEIR COACH DICK TOMEY HAS SAID BUT THIS IS NINETY FOUR AND WITH TRADITION AS WITH OTHER THINGS IT'S BETTER LATE THAN NEVER THE WILDCATS SHOWED UP AT THEIR ARIZONA STADIUM HOME HERE ON A COOLISH SATURDAY NIGHT RANKED A LOFTY SIXTH NATIONALLY AND THEIR THIRTY TO TEN VICTORY OVER OREGON STATE PROBABLY DID NO HARM TO THAT STATUS THEY'RE NOW FOUR TO ZERO IN THE WON LOST COLUMN AND TWO TO ZERO IN THEIR CONFERENCE WITH USUALLY POWERFUL WASHINGTON SENTENCED BY THE N. C. A. A. TO SPEND THE CHRISTMAS HOLIDAYS AT HOME FOR VARIOUS MISDEEDS AND SIMILARLY ENDOWED U. C. L. A. OFF TO AN ZERO TO TWO LEAGUE START LOCAL TRAVEL AGENTS MIGHT WELL START PASSING PASADENA BROCHURES AROUND TUCSON SATURDAY'S WIN WAS AN UNUSUAL ONE FOR THE WILDCATS IN THAT ITS MAIN IMPETUS WAS OFFENSIVE RATHER THAN DEFENSIVE SINCE THE DEADPAN PALE EYED TOMEY TOOK CHARGE HERE IN NINETEEN EIGHTY SEVEN AFTER FIRST FOLLOWING THE SUN TO U. C. L. A. AS AN ASSISTANT AND THEN TO HAWAII AS HEAD MAN ARIZONA'S FOOTBALL FORTUNES HAVE RISEN WITH ITS ABILITY TO DO ONE THING VERY WELL KEEPING OPPONENTS FROM RUNNING WITH THE FOOTBALL OVER THE PREVIOUS TWO SEASONS EN ROUTE TO RECORDS OF SIX FIVE ONE AND TEN TO TWO IT LIMITED FOES TO FORTY FIVE point FIVE RUSHING YARDS A GAME AND A SCORING AVERAGE OF ELEVEN point THREE FOR THE FIRST THREE GAMES THIS TERM IT DROPPED THOSE SNAZZY FIGS TO THIRTY SIX AND EIGHT RESPECTIVELY WHILE PICKING UP A NICKNAME MADE IN T. SHIRT HEAVEN DESERT SWARM ON SATURDAY OREGON STATE'S WISHBONE FORMATION ATTACK LED BY A SHIFTY TEXAS BORN SOPHOMORE QUARTERBACK NAMED DON SHANKLIN WHOSE UNCLE RONNIE PLAYED FOR THE PITTSBURGH STEELERS' SUPER BOWL CHAMPS MADE THE SWARMERS LOOK LIKE SO MANY CACTUS ON OCCASION THE BEAVERS' ONE HUNDRED EIGHTY FIVE YARDS OVERLAND WERE THE MOST AGAINST A WILDCAT TEAM IN THREE SEASONS AND SHANKLIN CONNECTED ON A FEW PASSES AS WELL BUT WITH JUNIOR QUARTERBACK DAN WHITE THROWING FOR THREE TOUCHDOWNS ZONA PREVAILED NONETHELESS AND THAT WAS ENOUGH TO MAKE TOMEY SMILE ALMOST quote WE'RE TRYING TO BECOME EFFICIENT AT WINNING GAMES HE SAID AFTERWARD IT'S HARD TO BE FINICKY ABOUT THE HOW INDEED ON BOTH SIDES OF THE BALL THE MAIN HOW quote IN THE WILDCATS' ASCENT HAS BEEN RESOURCEFULNESS LACKING THE HISTORY AND PIZZAZZ OF SOME OF ITS PAC TEN RIVALS THEY'VE MADE DO WITH PLAYERS WHO DON'T FIT THE USUAL BLUE CHIP PHYSICAL MOLDS BUT COMPENSATE WITH FEISTINESS THEIR DEFENSIVE EXCELLENCE HAS BEEN BASED UPON AN INNOVATIVE FORMATION THEY CALL THE DOUBLE EAGLE FLEX THIS COMMITS SIX MEN TO STOPPING THE RUN ON JUST ABOUT EVERY PLAY EITHER FROM THE USUAL LINEMEN'S POSITION OR FROM STATIONS A YARD OR TWO BEHIND THE SCRIMMAGE IT PERMITS AN ATTACK WITH AS FEW AS TWO DOWN LINEMEN AND AS MANY AS FIVE THE IDEA BEING TO CONFUSE OPPONENTS' BLOCKING SCHEMES WHEN IT HAS THE SPHEROID ARIZONA HAS PREFERRED TO RUN WITH IT THE BETTER TO MINIMIZE MISTAKES AND IF THAT WASN'T THRILLING SO BE IT BUT THIS SEASON IT HAS FOUND A PITCHER CATCHER COMBO THAT IS SECOND TO FEW THE PITCHER IS THE SIX FOOT FIVE WHITE A FAST DEVELOPING CALIFORNIAN WHO INITIALLY SIGNED UP WITH PENN STATE AND CAME TO TUCSON ONLY WHEN HIS ADVANCEMENT BACK EAST SEEMED BLOCKED THE CATCHER IS ANOTHER CALIFORNIAN RICHARD DICE A SPEEDSTER WITH A G. I. HAIRCUT WHO IN HIGH SCHOOL WAS AS ENAMORED OF BASKETBALL AS FOOTBALL AND LIKED CARRYING THE BALL AS MUCH AS CATCHING IT WHITE AND DICE COMBINED FOR THREE T. D. PASSES IN LOPSIDED WINS OVER NEW MEXICO STATE AND STANFORD BUT NONE MATCHED THE KICK OF THEIR FIRST CONNECTION BEFORE A NEAR FULL HOUSE CROWD OF FIFTY FOUR THOUSAND TWO HUNDRED FORTY FIVE ON SATURDAY ARIZONA CONTROLLED THE BALL FOR MORE THAN TWELVE MINUTES OF THE FIRST QUARTER BUT HAD ONLY TWO STEVE MCLAUGHLIN FIELD GOALS TO SHOW FOR IT ON THE SECOND PLAY OF ARIZONA'S FIRST SECOND QUARTER POSSESSION THOUGH WHITE FADED FROM THE OSU FORTY SEVEN AND HIT DICE ON THE THIRTY FIVE HE BROKE A TACKLE AND ZIPPED IN FROM THERE AN EIGHTY YARD DRIVE BY THE ONE TO THREE BEAVERS WHOSE OVERALL SHOWING BELIED A PAST FAR SADDER THAN ARIZONA'S THEY HAVEN'T HAD A WINNING SEASON SINCE NINETEEN SEVENTY MADE THE SCORE THIRTEEN TO SEVEN THEN WHITE AND TIGHT END LAMAR HARRIS LINKED UP FOR A THIRTEEN YARD SCORING PLAY AND A TWENTY TO SEVEN LEAD A FIFTY ONE YARD SHANKLIN RUN SET UP AN OSU FIELD GOAL AS THE HALF ENDED THE VISITORS MORE THAN HELD THEIR OWN IN THE THIRD AND EARLY FOURTH QUARTERS AND MIGHT HAVE MADE THINGS INTERESTING IF THEY HADN'T LOST TWO FUMBLES ONE WILDCAT RECOVERY LED TO A FIELD GOAL AND WITH LESS THAN THREE MINUTES LEFT ZONA ICED IT WITH A THIRTY FOUR YARD WHITE TO DICE TOUCHDOWN PASS quote I SAW SINGLE COVERAGE ON BOTH MY SCORES AND MY EYES LIT UP DICE GRINNED IF TEAMS WANT TO STOP OUR RUN I GUESS I'LL BE SEEING MORE OF THAT THERE'S QUITE A BIT MORE SEASON AHEAD BUT ARIZONA HAS A COUPLE OF DATES CIRCLED IN RED ONE IS OCTOBER FIFTEENTH WHEN THE TEAM WILL TRAVEL TO MEET DEFENSIVELY POTENT WASHINGTON STATE THE OTHER NOVEMBER TWELFTH WHEN THEY'LL PLAY SOUTHERN CAL AT LOS ANGELES WHILE THEY'RE THERE THEY JUST MIGHT SCOUT OUT THAT NICE LITTLE SUBURB TO THE NORTH DATABASE MARKETING ONCE THE SOLE PROVINCE OF DIRECT MARKETERS IS THE NEW BUZZWORD OF TOP MANAGEMENT THIS IS NOT SURPRISING AS IT PROMISES TO TURN INFORMATION INTO MONEY WHICH FROM A BUSINESS STANDPOINT IS WHAT THE INFORMATION AGE IS ALL ABOUT SIMPLY PUT THE GOAL OF DATABASE MARKETING IS TO ALLOW MANAGEMENT TO USE COMPUTER GENERATED INFORMATION ABOUT CUSTOMERS' BUYING DECISIONS TO PINPOINT THOSE PEOPLE WHO ARE MOST LIKELY TO BUY A PARTICULAR PRODUCT IT'S THE IDEAL JOB FOR TODAY'S NUMBER CRUNCHING P. C.S AND BUDGET MINDED EXECUTIVES LOVE THE IDEA BECAUSE AT LEAST THEORETICALLY IT USES REAMS OF CUSTOMER FACTS TO REACH CONSUMERS WITH THE PRECISION OF A PATRIOT MISSILE YET DATABASE MARKETING HAS A DARK SIDE THAT NEEDS TO BE UNDERSTOOD AND CONTROLLED IF MANAGEMENT IS TO BENEFIT FROM ITS POTENTIAL CONTROL THE TECHNOLOGY TECHNOLOGY CAN RUN AWAY FROM YOU AND ASSUME A LIFE OF ITS OWN DATABASE MARKETING IS NO EXCEPTION BY PERSONALIZING THE MARKETING PROCESS DATABASE MARKETING RATCHETS UP THE RISK slash REWARD EQUATION FOR THE MARKETER SEND THE RIGHT MESSAGE TO THE RIGHT PERSON AT THE RIGHT TIME AND YOU HIT THE JACKPOT BUT IF YOU DON'T THE ADDED PERSONALIZATION INCREASES CUSTOMERS' ANNOYANCE PEOPLE COMPLAIN A LOT MORE ABOUT IRRELEVANT JUNK MAIL AND JUNK CALLS THAN THEY DO ABOUT IRRELEVANT T. V. COMMERCIALS DON'T MAKE MOLEHILLS OF INFORMATION INTO MOUNTAINS OF DATA DATABASE MARKETERS MAKE A CULT OF INFORMATION THE MORE THE BETTER BUT YOU DON'T HAVE TO KNOW EVERYTHING ABOUT CUSTOMERS TO MARKET TO THEM IN A MEANINGFUL AND RELEVANT MANNER AS A FORMER HEAD OF PROMOTION AT PET FOOD MANUFACTURER RALSTON PURINA SAID MAKE SURE THEY HAVE DOGS quote BECAUSE COMPUTERS GET CHEAPER AND BETTER ALL THE TIME THERE'S A GREAT TEMPTATION TO COLLECT EVERY PIECE OF DATA AT EVERY OPPORTUNITY IT'S A TEMPTATION ESPECIALLY DANGEROUS TO TRANSACTION RICH INDUSTRIES LIKE BANKING WHAT COMPANIES END UP WITH ARE OVERBUILT DATABASES TOO COSTLY TO MAINTAIN AND UNWIELDY TO USE WORRY ABOUT PRIVACY THE U.SS MAY BE THE ONLY DEVELOPED COUNTRY THAT STILL HAS A LAISSEZ FAIRE ATTITUDE ABOUT INFORMATION CONSUMERS ARE JUSTIFIABLY NERVOUS ABOUT THIS IT'S EASY TO FIND THINGS OUT ABOUT CUSTOMERS AND MANY MARKETERS ARE TOO CASUAL ABOUT THE PROCESS GET CUSTOMERS' PERMISSION IF YOU PLAN TO GIVE INFORMATION TO A THIRD PARTY THE PRIVACY HORROR STORY OF THE YEAR NYNEX THE REGIONAL TELEPHONE COMPANY MAILED SEVERAL MILLION CIRCULARS TO CUSTOMERS URGING THEM TO USE THEIR CALLING CARDS CUSTOMERS' PERSONAL IDENTIFICATION NUMBERS OR PINS WERE PRINTED ON THE MAILERS WHICH LACKED ENVELOPES ANYONE COULD SIMPLY PEEK INSIDE AND FIND OUT THE PIN RESULTS HORRIFIED CUSTOMERS BAD PRESS AND ERODED RELATIONSHIPS BEWARE THE WORLD OF MID TECH WHEN THE TRAPPINGS OF HIGH TECHNOLOGY ARE PRESENT BUT FAIL TO DELIVER ON THEIR PROMISE YOUR CUSTOMER ENTERS THE DANGER ZONE OF MID TECH THE MOST IMPORTANT HIGH TECH LINKAGE FOR MARKETERS THESE DAYS IS DATA PROCESSING AND TELECOMMUNICATIONS THE EIGHT HUNDRED NUMBER FOR EXAMPLE CAN FEED TRANSACTION INFORMATION INTO THE DATABASE BUT TELECOMMUNICATIONS IS MADE TO ORDER FOR quote MID TECH GLITCHES UNANSWERED PHONES AND OUT OF CONTROL VOICE MAIL MENUS THROW YOUR CUSTOMERS INTO A MID TECH FUNK OF FRUSTRATION ANGER AND ULTIMATELY DEFECTION ANOTHER COMMON MID TECH quote GLITCH IF YOU GET CUSTOMERS' NAMES WRONG YOU'RE VIOLATING THEIR SENSIBILITIES ON A PROFOUND LEVEL AND ERODING YOUR BRAND FRANCHISE BUILD YOUR DATABASE BUT DON'T FORGET YOUR BRAND EARLY RETURNS FROM COMPANIES AS DIVERSE AS PIZZA HUT HOLIDAY INN SEARS AMERICAN AIRLINES AND M. C. I. SUGGEST THAT A GOOD CUSTOMER DATABASE CAN PROVIDE A SUBSTANTIAL COMPETITIVE EDGE BUT GOOD TECHNOLOGY WITHOUT GOOD PSYCHOLOGY IS A LOSER'S FORMULA THAT'S WHERE THE BRAND COMES IN PEOPLE ARE BRAND LOYAL TODAY NOT AS A STATUS STATEMENT BUT BECAUSE THEY'RE AFRAID OF THE CONSEQUENCES IF THEY CHOOSE A NEW PRODUCT THAT TURNS OUT TO BE A LEMON BECAUSE OF INTENSE MEDIA FOCUS ON CUSTOMER RIP OFFS AND A PLETHORA OF CONSUMER PROTECTION LAWS TODAY'S BUYERS ARE HYPER SENSITIVE TO ANY NEW PRODUCT EVEN ONE DIRECTED RIGHT AT THEIR PARTICULAR NEEDS SO DEVELOPING BRAND LOYALTY IS MORE IMPORTANT THAN EVER THE BEST WAY TO KEEP CUSTOMERS IS TO KNOW WHO THEY ARE AND WHAT THEY DO THAT'S WHAT DATABASE MARKETING IS ALL ABOUT AT ITS BEST IT MAY WELL BE THE TRANSFORMING MARKETING IDEA OF THE DECADE AND THE PREVAILING APPROACH BY EARLY NEXT CENTURY AS LONG AS MARKETERS KNOW HOW TO USE IT AND DON'T ABUSE IT MR. ROSENFIELD IS CHAIRMAN OF A SAN DIEGO BASED MARKETING CONSULTATION FIRM A HALF CENTURY AFTER ITS FOUNDING AT BRETTON WOODS N. H. IN NINETEEN FORTY FOUR THE INTERNATIONAL MONETARY FUND CONVENED ITS ANNUAL MEETING HERE OVER THE WEEKEND AND GOT RIGHT DOWN TO BUSINESS WHAT BUSINESS WHY HANDING OUT MONEY OF COURSE IT WANTED TO DISTRIBUTE FIFTY BILLION DOLLARS OF ITS SPECIAL DRAWING RIGHTS OR PAPER GOLD TO GIVE THE WORLD A FRESH CHARGE OF LIQUIDITY ITS MASTERS THE MONEY MANAGERS OF THE G. SEVEN LEADING INDUSTRIAL NATIONS ON SATURDAY PROPOSED TWENTY FOUR BILLION DOLLARS MAINLY FOR COUNTRIES SUCH AS RUSSIA AND OTHER FORMER SOVIET STATES THAT HAVE JOINED THE I. M. F. SINCE NINETEEN EIGHTY ONE AND DIDN'T GET IN ON THE LAST PAPER GOLD DISTRIBUTION EVEN AT TWENTY FOUR BILLION DOLLARS THE I. M. F. AND WORLD BANK TWIN CREATIONS OF BRETTON WOODS WHO MEET JOINTLY SHOULD NOT BE DISPLEASED THE G. SEVEN CAVE IN SUGGESTED THAT EVEN IN A WORLD OF RISING INFLATION FEARS THE CURRENT CAST OF G. SEVEN FINANCE MINISTERS AND CENTRAL BANKERS ARE WILLING TO PUT ANOTHER LARGE GOB OF LIQUIDITY INTO THE HANDS OF SOME OF THE WORLD'S WORST MANAGED GOVERNMENTS BUT WHILE THE PAPER GOLD DEAL GIVES NEW LIFE TO THESE AGING LENDING INSTITUTIONS SOME ICONOCLASTS ARE SAYING THAT THEY HAVE OUTLIVED THEIR USEFULNESS THEY MAY WELL BE RIGHT ONE SUCH MALCONTENT IS SIR ALAN WALTERS FORMER ECONOMIC ADVISER TO BRITISH PRIME MINISTER MARGARET THATCHER IN A PAPER PREPARED FOR LONDON'S INSTITUTE OF ECONOMIC AFFAIRS AND TIMED FOR RELEASE TODAY HE SAID THAT BOTH THE I. M. F. AND WORLD BANK ARE RELICS OF A BYGONE ERA HE WROTE THAT LEADING CENTRAL BANKERS ARE BECOMING MORE INDEPENDENT OF POLITICS AND ARE THUS INCREASINGLY UNCOMFORTABLE WITH THE BRETTON WOODS INSTITUTIONS WHICH ARE DOMINATED BY POLITICAL PRESSURE SATURDAY'S PAPER GOLD APPROVAL WAS INDEED MAINLY A POLITICAL GESTURE BY THE U. S. AND ITS ALLIES TO APPEASE RUSSIA AND THUS BEARS OUT SIR ALAN'S ARGUMENT AFTER GREETING THE HAPPY GATHERING IN MADRID WITH THIS SALVO SIR ALAN COULD HAVE GONE A GREAT DEAL FURTHER IN DESCRIBING THE INCREASING IRRELEVANCE OF THE BRETTON WOODS INSTITUTIONS TO GOOD THINGS THAT ARE HAPPENING IN THE WORLD ECONOMY TODAY ANYONE WHO SPENT SOME TIME LAST WEEK AS I DID AT ANOTHER LARGE ASSEMBLAGE OF V. I. P.S IN THIS CITY WOULD KNOW THAT THE WORLD IS UNDERGOING A FUNDAMENTAL CHANGE AT A PRIVATELY SPONSORED GATHERING CALLED THE WORLD ECONOMIC DEVELOPMENT CONGRESS IT WAS EVIDENT THAT THE FASTEST GROWING COUNTRIES IN THE WORLD ARE SUCCEEDING WITH LITTLE OR NO HELP FROM I. M. F. AND DEVELOPMENT BANK HANDOUTS THEY ARE DOING IT BY PRIVATIZING STATE OWNED MONOPOLIES AND BY REMOVING TAX AND REGULATORY BARRIERS THAT DISCOURAGE DOMESTIC AND FOREIGN PRIVATE DIRECT INVESTMENT EVEN INFRASTRUCTURE PROJECTS SUCH AS POWER PLANTS AND TELECOMMUNICATIONS ARE BEING PRIVATELY DEVELOPED AND FINANCED WITH quote EMERGING MARKET FUNDS WHEN RECESSIONS DRIED UP HANDOUTS FROM THE INDUSTRIAL WORLD GOVERNMENTS EVERYWHERE WERE FORCED TO FIND THEIR OWN ROUTES TO DEVELOPMENT AT THE MADRID CONGRESS KENNETH D. BRODY PRESIDENT AND CHAIRMAN OF THE EXPORT IMPORT BANK OF THE UNITED STATES DESCRIBED WHAT HE CALLED A CATACLYSMIC CHANGE IN EXPORT FINANCING TWO YEARS AGO MOST OF OUR BUSINESS WAS WITH SOVEREIGN GOVERNMENTS quote HE SAID THIS YEAR OVER HALF WILL BE WITH PRIVATE SECTORS IN DEVELOPING COUNTRIES AND THE PERCENTAGE IS GROWING THE STORY OF THE RAPID PRIVATE DEVELOPMENT OF HONG KONG SINGAPORE SOUTH KOREA AND TAIWAN IS BY NOW LEGEND OTHER ASIAN TIGERS ARE STIRRING IN THE SAME WAY SOME OF THEM QUITE LARGE ONES INDEED JOINT VENTURES BETWEEN PRIVATE COMPANIES AND MUNICIPAL AUTHORITIES IN quote SPECIAL ECONOMIC ZONES HAVE FUELED CHINA'S BOOM INDIA IS BEGINNING TO COME TO LIFE AS A RESULT OF THE FORWARD LOOKING POLICIES OF FINANCE MINISTER MANMOHAN SINGH HE HAS OVERRIDDEN THE RESISTANCE OF INDIA'S LONG DOMINANT PROTECTIONIST MOGULS AND HAS BEGUN TO OPEN UP THE COUNTRY TO FOREIGN PRIVATE INVESTMENT PRIVATE SECTORS IN MALAYSIA AND INDONESIA ARE MAKING PROGRESS THE MEXICAN TURNAROUND WITH POLICIES BASED IN PART ON THE SUCCESSFUL CHILEAN MODEL HAS BEEN DRAMATIC ARGENTINA HAS BEGUN TO DISCARD ITS FASCIST STATOST TRADITIONS WITH REMARKABLE RESULTS BRAZIL MAY FINALLY BE GETTING POLICIES THAT WILL MAKE IT MORE THAN WHAT IT HAS BEEN FOR YEARS MERELY A LAND OF PROMISE A MORE STABLE CURRENCY IS ONE GOOD SIGN WHAT BRAZILIANS MOST NEED IS MORE HANDS OFF POLITICAL LEADERSHIP AND THEY MAY GET IT FROM THIS WEEK'S NATIONAL ELECTIONS AN EXECUTIVE OF A LARGE INTERNATIONAL CONSTRUCTION FIRM TOLD ME AT THE CONGRESS THAT HE IS EVEN SCOUTING SOUTHERN AFRICA NOW THAT SOUTH AFRICA HAS DEALT WITH APARTHEID HE WANTS TO BE AMONG THE FRONT RUNNERS WHEN THE SOUTHERN CONE OF AFRICA BEGINS TO FIND ITS FOOTING ALTHOUGH THAT STILL IS PROBLEMATICAL IN WHAT IS ONE OF THE MOST REMARKABLE GLOBAL TRANSFORMATIONS IN ECONOMIC HISTORY DEVELOPING COUNTRIES ARE LEADING WHAT IS BEGINNING TO LOOK LIKE A VIGOROUS GLOBAL ECONOMIC RECOVERY THE I. M. F.'S NEWEST WORLD ECONOMIC OUTLOOK REPORT RELEASED HERE WEDNESDAY PROJECTED A THREE point ONE percent GROWTH IN WORLD OUTPUT THIS YEAR AND THREE point SIX percent NEXT YEAR THAT'S TWICE THE PACE OF NINETEEN NINETY TO NINETEEN NINETY THREE THE GROWTH RATE OF DEVELOPING COUNTRIES THIS YEAR AT SOME FIVE point SIX percent WILL BE MORE THAN DOUBLE THAT OF THE INDUSTRIAL NATIONS ALTHOUGH OF COURSE FROM A SMALLER BASE THE FASTEST GROWTH NOT SURPRISINGLY WILL COME FROM THE DEVELOPING COUNTRIES OF ASIA WHERE THE I. M. F. IS PROJECTING AN EIGHT percent INCREASE IN OUTPUT THE EFFICACY OF PRIVATE DEVELOPMENT EVEN IS WINNING ADMIRATION FROM SOME MULTILATERAL INSTITUTIONS ANOTHER SPEAKER AT THE DEVELOPMENT CONGRESS WAS JACQUES DE LAROSIERE THE FORMER I. M. F. CHIEFTAIN WHO NOW HEADS THE THREE YEAR OLD EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT THANKS IN LARGE PART TO THE BUSH ADMINISTRATION ONE OF THE GROUND RULES FOR THE E. B. R. D. WAS THAT IT MUST MAKE SIXTY percent OF ITS LOANS TO THE PRIVATE SECTOR AS IT HELPS FINANCE THE RECOVERY OF EUROPE'S FORMER COMMUNIST COUNTRIES MR. DE LAROSIERE SAID THAT AFTER AN EARLY TILT TOWARD THE PUBLIC SECTOR THE E. B. R. D. IS RAPIDLY APPROACHING SIXTY percent IN PRIVATE LOANS OUTSTANDING WE CAN ONLY OPERATE WITH THE PARTICIPATION OF THE PRIVATE SECTOR quote HE SAID INTELLECTUALLY THE CONVERSION OF GOVERNMENTS ALL OVER THE WORLD FROM SOCIALIST THINKING TO AN APPRECIATION OF THE EFFICIENCY AND GROWTH IMPETUS OF A PRIVATE SECTOR HAS BEEN PHENOMENAL POLITICIANS WHO ONCE CRAVED MORE AND MORE ECONOMIC POWER NOW KNOW THAT IT IS A TWO EDGED SWORD WHEN THINGS GO WRONG AS THEY USUALLY DO UNDER STATE CONTROL POLITICIANS GET THE BLAME IN SHORT A LOT OF NATIONAL LEADERS HAVE SEEN THE FUTURE AND WHAT DO YOU KNOW IT WORKS WEIRTON STEEL CORPORATION SAID IT REDEEMED ALL TWENTY FIVE MILLION DOLLARS OF ITS SERIES B. REDEEMABLE PREFERRED STOCK PLUS FULL CUMULATIVE DIVIDENDS THE COMPANY ISSUED THE STOCK IN OCTOBER NINETEEN NINETY ONE TO CLEVELAND CLIFFS INCORPORATED AT THE SAME TIME THAT THE COMPANIES ENTERED INTO A TWELVE YEAR CONTRACT FOR CLEVELAND CLIFFS TO SUPPLY ONE MILLION TONS OF IRON ORE PELLETS TO WEIRTON ANNUALLY IN CONNECTION WITH THE REDEMPTION THE TWO COMPANIES AGREED TO EXTEND THEIR PELLET SUPPLY ARRANGEMENT BY TWO YEARS THROUGH TWO THOUSAND FIVE PART OF THE PROCEEDS FROM WEIRTON'S RECENT PUBLIC OFFERING OF ONE HUNDRED TWENTY FOUR MILLION DOLLARS IN COMMON STOCK IS BEING USED TO REDEEM THE PREFERRED STOCK SUDDENLY THE ACQUISITION SPREE AT PILLOWTEX CORPORATION IS STARTING TO LOOK LIKE A BAD DREAM UNTIL LAST WEEK PILLOWTEX THE NATION'S FOURTH LARGEST HOME TEXTILE MAKER HAD WON APPLAUSE FROM WALL STREET AND INDUSTRY OBSERVERS AS ITS CHAIRMAN CHARLES M. HANSEN JUNIOR TOOK THE COMPANY PUBLIC AND ORCHESTRATED SIX ACQUISITIONS ALL IN LESS THAN TWO YEARS AT THE HELM BUT NOW PILLOWTEX HAS AWAKENED TO PROBLEMS WITH SOME OF ITS NEW UNITS RAISING DOUBTS OVER WHETHER IT CAN MANAGE THE OPERATIONS AND DEBT IT HAS TAKEN ON ON FRIDAY MR. HANSEN ANNOUNCED THAT THIRD QUARTER EARNINGS COULD BE AS MUCH AS TWENTY FIVE percent BELOW ANALYSTS' EXPECTATIONS AND HE ATTRIBUTED THE SHORTFALL PRIMARILY TO COST AND PRODUCTION PROBLEMS AT TWO BLANKET MAKERS PILLOWTEX ACQUIRED LAST YEAR THEIR FACTORIES ARE PRODUCING TOO FEW BLANKETS AT COSTS THAT ARE JUST TOO HIGH HE SAID MANAGEMENT'S FAILURE TO DETECT THAT PROBLEM ANY SOONER CONCERNED INVESTORS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY PILLOWTEX SHARES CLOSED AT THIRTEEN point ONE TWO FIVE DOLLARS DOWN ONE DOLLAR AND SEVENTY FIVE CENTS OR TWELVE percent LESS THAN TWO WEEKS AGO THE COMPANY'S CHIEF FINANCIAL OFFICER JEFFREY CORDES SAID IN AN INTERVIEW THAT HE EXPECTED THIRD QUARTER EARNINGS TO MEET ANALYSTS' EXPECTATIONS NOW HE SAYS A LOT OF THAT STUFF WE WERE NOT AWARE OF UNTIL VERY VERY LATE IN THE QUARTER THAT'S A BIG COMEDOWN FOR A COMPANY WHOSE SHARES ROSE TO TWENTY DOLLARS AND TWENTY FIVE CENTS AFTER GOING PUBLIC LAST YEAR AT FOURTEEN DOLLARS THE NUMBER OF ANALYSTS FOLLOWING THE COMPANY JUMPED THIS YEAR TO SEVEN FROM FOUR ALMOST ALL OF THEM RATING THE STOCK A quote BUY OR STRONG BUY IT'S A SURPRISE quote SAYS ANALYST ALICE LONGLEY AT DONALDSON LUFKIN and JENRETTE SECURITIES CORPORATION IN NEW YORK YET IT'S NOT AS THOUGH THERE WEREN'T ANY WARNINGS ALL ALONG SOME IN THE INDUSTRY HAVE ARGUED THAT PILLOWTEX WAS PAYING TOO MUCH FOR ACQUISITIONS AND THIS ISN'T THE FIRST TIME EARNINGS HAVE FALLEN BELOW EXPECTATIONS IN FACT THEY DID SO LAST QUARTER BY TWENTY FIVE percent BUT THE COMPANY HAS DEFENDED ITS ACQUISITION PRICES BY SAYING THAT IT COULD SQUEEZE MORE FROM THE NEW BUSINESSES THAN ANYONE EXPECTED AND LAST QUARTER IT DISMISSED ITS LOWER THAN EXPECTED EARNINGS AS SHORT TERM AND ATTRIBUTABLE TO THE COSTS OF DIGESTING ITS ACQUISITIONS IT'S EASY TO SEE HOW WALL STREET BECAME SO ENTHUSIASTIC ABOUT PILLOWTEX THE COMPANY LONG HAS HAD A REPUTATION FOR HIGH QUALITY PRODUCTS AND SPEEDY RESPONSE TO CUSTOMERS' NEEDS THEY DO A FANTASTIC JOB OF SERVICING THE BUSINESS SAID JOHN BLAKE A SENIOR BUYER AT DAYTON HUDSON CORPORATION'S TARGET STORES ADDED TO THAT IN NINETEEN NINETY TWO FOLLOWING THE DEATH OF FOUNDER JOHN SILVERTHORNE WAS A NEW AND AGGRESSIVE CHIEF EXECUTIVE OFFICER MR. HANSEN WHO HAS WORKED AT PILLOWTEX FOR TWENTY NINE OF HIS FIFTY THREE YEARS DECLARED THAT HE WANTED TO MAKE IT THE STRONGEST MOST PROFITABLE COMPANY IN HOME TEXTILES SPEAKING OF MR. HANSEN DON HOGSETT OF THE TRADE PUBLICATION HOME TEXTILES TODAY SAID quote THERE'S A LOT OF AMBITION THERE AND SOME EGO AS THE FIRST STEP IN HIS GROWTH PLAN MR. HANSEN SET OUT TO RAISE CAPITAL IN MARCH NINETEEN NINETY THREE FOUR MONTHS AFTER MR. SILVERTHORNE'S DEATH AND WITH MR. HANSEN NOW CHAIRMAN AND CHIEF EXECUTIVE PILLOWTEX SOLD THREE point FIVE MILLION SHARES OR THIRTY FIVE percent OF ITS STOCK FOR FOURTEEN DOLLARS A SHARE IN ITS INITIAL PUBLIC OFFERING MR. HANSEN AND MR. SILVERTHORNE'S WIDOW MARY NOW CONTROL ABOUT FIFTY SIX percent OF THE STOCK SIX MONTHS LATER PILLOWTEX BEGAN ITS ACQUISITION SPREE BRANCHING OUT FROM ITS CORE PILLOW AND MATTRESS PAD BUSINESS IT BOUGHT TWO BLANKET MAKERS AND A PILLOW AND MATTRESS PAD MAKER WHOSE TOTAL ANNUAL SALES WERE ABOUT SIXTY MILLION DOLLARS ONE OF THE ACQUISITIONS INCLUDED A LUCRATIVE LICENSE TO PRODUCE BLANKETS WITH THE RALPH LAUREN LABEL THE BUYING CONTINUED WHEN PILLOWTEX ANNOUNCED IN AUGUST THAT IT WOULD ACQUIRE BLANKET AND BEDSPREAD MAKER BEACON MANUFACTURING COMPANY AND YARN MAKER WISCASSET MILLS COMPANY WHICH HAVE COMBINED ANNUAL SALES OF ABOUT TWO HUNDRED MILLION DOLLARS ALSO IN AUGUST PILLOWTEX ACQUIRED SOME OF THE ASSETS OF CANADIAN PILLOW AND COMFORTER MAKER IMPERIAL FEATHER COMPANY FOR THREE point SIX MILLION DOLLARS THE ACQUISITIONS QUICKLY RAISED PILLOWTEX'S PROFILE IN THE HOME TEXTILES INDUSTRY BASED ON ANALYSTS' ESTIMATES THE COMPANY PROVIDED PILLOWTEX SALES ARE EXPECTED TO AT LEAST DOUBLE TO MORE THAN SIX HUNDRED MILLION DOLLARS NEXT YEAR FROM TWO HUNDRED NINETY TWO point TWO MILLION DOLLARS LAST YEAR AND IT ALREADY DOMINATES SOME PRODUCT CATEGORIES IT HAS FIFTY THREE percent OF THE TWO HUNDRED SIXTY FIVE MILLION DOLLAR ANNUAL PILLOW MARKET FORTY EIGHT percent OF THE ONE HUNDRED TEN MILLION DOLLAR DOWN COMFORTER MARKET FORTY SIX percent TO FORTY EIGHT percent OF THE TOTAL THREE HUNDRED MILLION DOLLARS WHOLESALE U. S. BLANKET MARKET AND TWENTY SEVEN percent OF THE TWO HUNDRED FIVE MILLION DOLLAR MATTRESS PAD MARKET ACCORDING TO HOME TEXTILES TODAY YET PILLOWTEX REMAINS A LONG WAY FROM THE TOP AHEAD OF IT IN HOME TEXTILES ARE WEST POINT PEPPERELL INCORPORATED SPRINGS INDUSTRIES INCORPORATED AND FIELDCREST CANNON INCORPORATED WHOSE ANNUAL SALES RANGE FROM ONE point TWO BILLION DOLLARS TO TWO BILLION DOLLARS TO GAIN ON THE COMPETITION MR. HANSEN WANTS PILLOWTEX TO TRIPLE THE CONTRIBUTION OF ITS INTERNATIONAL BUSINESS TO SALES TO AS MUCH AS FIFTEEN percent FROM THE CURRENT FIVE percent HE ALSO HASN'T RULED OUT ACQUIRING MORE COMPETITORS HIS QUALITY CONTROL DEPARTMENT IS CONSTANTLY SPINNING COMPETITORS' PILLOWS THROUGH A HOME WASHING MACHINE TO EVALUATE HOW THEY HOLD UP AND HIS CHIEF FINANCIAL OFFICER MR. CORDES POINTS TO FOUR FILE DRAWERS IN HIS OFFICE FULL OF DATA ON COMPETITORS THAT PILLOWTEX MIGHT DECIDE TO ACQUIRE YET EVEN BEFORE THE TROUBLES AT THE COMPANY'S BLANKET MAKERS ANALYSTS AND INDUSTRY INSIDERS WERE STARTING TO WORRY TOTAL DEBT AT PILLOWTEX WILL MORE THAN QUADRUPLE IN LESS THAN TWO YEARS FROM ABOUT SIXTY MILLION DOLLARS BEFORE THE ACQUISITIONS BEGAN TO ABOUT TWO HUNDRED SIXTY MILLION DOLLARS ASSUMING IT COMPLETES TWO PENDING ACQUISITIONS THAT WOULD GIVE IT A DEBT TO EQUITY RATIO IN EXCESS OF THREE TO ONE MORE THAN TEN TIMES THE AVERAGE FOR THE DURABLE HOUSEWARES INDUSTRY ACCORDING TO MEDIA GENERAL FINANCIAL SERVICES A FINANCIAL DATA PROVIDER I THINK THEY CAN HANDLE THE DISCIPLINE THAT THE ADDED DEBT IS GOING TO IMPOSE BUT I WOULD LIKE TO SEE THEM REDUCE IT THROUGH CASH FLOW SAYS ANALYST LYNN DETRICK OF WILLIAMS MACKAY JORDAN and COMPANY IN HOUSTON TO ADDRESS THE PROBLEMS MR. HANSEN IN RECENT DAYS REPLACED TWO MANAGERS RESPONSIBLE FOR THE BLANKET OPERATIONS AND ORDERED THE NEW REGIME TO CUT COSTS QUICKLY AND INCREASE PRODUCTION ELABORATING MR. CORDES EXPLAINED THAT A LACK OF TRAINING AMONG CERTAIN WORKERS AND MACHINERY PROBLEMS CAUSED THE INEFFICIENCIES THERE ARE SOME THINGS THAT HAVE TO BE CLEANED UP AND THEY WILL BE CLEANED UP quote HE SAID FICKLE STOCK AND BOND MARKETS DEPRESSED SALES OF NEW STOCK AND BOND ISSUES IN THE THIRD QUARTER TO THEIR LOWEST LEVELS IN NEARLY FOUR YEARS ISSUANCE HIT ITS LOWEST LEVEL SINCE THE FIRST QUARTER OF NINETEEN NINETY ONE PLUNGING FIFTY ONE percent TO ONE HUNDRED FORTY THREE point FIVE BILLION DOLLARS FROM TWO HUNDRED NINETY SIX point ONE BILLION DOLLARS IN THE SAME PERIOD LAST YEAR ACCORDING TO SECURITIES DATA COMPANY A NEWARK N. J. COMPANY THAT TRACKS CORPORATE FINANCE ACTIVITY THE TOTAL VOLUME OF NEW STOCKS AND BONDS SOLD DOMESTICALLY IN THE FIRST NINE MONTHS OF THE YEAR FELL TWENTY EIGHT percent TO FIVE HUNDRED EIGHTY EIGHT point NINE BILLION DOLLARS FROM EIGHT HUNDRED TWENTY NINE point ONE BILLION DOLLARS A YEAR EARLIER ACCORDING TO SECURITIES DATA IN THE THIRD QUARTER THERE WAS LESS COMMON STOCK UNDERWRITING LESS MORTGAGE BACKED UNDERWRITING AND LESS DEBT UNDERWRITING SAID MARK BASCH DIRECTOR OF RESEARCH AT SECURITIES DATA IT'S REALLY HARD TO FIND A SECTOR THAT HASN'T DROPPED BACK THIS YEAR EVER SINCE THE FEDERAL RESERVE FIRST RAISED INTEREST RATES IN FEBRUARY STOCK AND BOND MARKETS HAVE STUMBLED AND SALES OF NEW DEBT AND EQUITY HAVE SLOWED CONSIDERABLY AFTER WADING IN PROFITS FOR THE PAST THREE YEARS SECURITIES FIRMS WHICH BUY NEW STOCK AND BOND ISSUES FROM CORPORATIONS AND RESELL THEM TO INVESTORS AT A MARKUP HAVE BEEN LOOKING AT SLIMMER UNDERWRITING FEES THIS YEAR ACCORDING TO SECURITIES DATA DISCLOSED UNDERWRITING FEES TUMBLED THIRTY TWO percent TO FOUR point FIVE BILLION DOLLARS DURING THE FIRST NINE MONTHS OF THE YEAR FROM SIX point SEVEN BILLION DOLLARS A YEAR EARLIER ONE OF THE REASONS FOR THE STEEP DROP IS THAT INITIAL PUBLIC OFFERINGS A BIG MONEY GENERATOR FOR WALL STREET ARE OFF SHARPLY THIS YEAR AFTER EXPLODING FOR THE PAST THREE YEARS SALES OF I. P. O.S FELL TWENTY ONE point ONE percent IN THE FIRST NINE MONTHS OF THE YEAR TO TWENTY ONE point THREE BILLION DOLLARS FROM TWENTY SEVEN point ONE BILLION DOLLARS A YEAR EARLIER OVERALL COMMON STOCK SALES ARE DOWN TWENTY EIGHT percent SO FAR THIS YEAR TO FORTY TWO point SIX BILLION DOLLARS ACCORDING TO SECURITIES DATA THE THIRD QUARTER WAS PARTICULARLY HARD ON UNDERWRITERS AS INITIAL PUBLIC OFFERINGS SANK FORTY SEVEN percent TO FOUR point EIGHT BILLION DOLLARS ACCORDING TO SECURITIES DATA DESPITE THE GRIM CLIMATE SOME UNDERWRITERS SEE BETTER DAYS AHEAD RICHARD KAUFFMAN CO HEAD OF EQUITY CAPITAL MARKETS AT MORGAN STANLEY and COMPANY SAID THAT EARLIER THIS SUMMER HIS FIRM HAD TO POSTPONE AN INITIAL PUBLIC OFFERING OF ERNST HOME CENTER INCORPORATED BECAUSE OF POOR INVESTOR APPETITE quote WE HAD NINE ONE ON ONE MEETINGS WITH INVESTORS AND WE HAD TO BEG FOR THOSE SAID MR. KAUFFMAN LAST MONTH WE HAD THE SAME COMPANY AND WE HAD THIRTY ONE REQUESTS FROM INVESTORS FOR MEETINGS AND WE WOUND UP PRICING THE DEAL IN THE MIDDLE OF THE TARGETED PRICE RANGE STILL MR. KAUFFMAN SAID THAT THE QUALITY OF THE UNDERWRITING CALENDAR REMAINS UNEVEN AS MANY OF THE DEALS IN THE PIPELINE HAVE BEEN IN REGISTRATION FOR A WHILE ON THE FIXED INCOME SIDE THE GLOOM CONTINUES DOMESTIC DEBT SALES SLUMPED TWENTY EIGHT percent DURING THE FIRST NINE MONTHS OF THE YEAR TO FIVE HUNDRED TWENTY EIGHT point EIGHT BILLION DOLLARS FROM SEVEN HUNDRED THIRTY THREE point FOUR BILLION DOLLARS A YEAR EARLIER IN THE THIRD QUARTER DEBT SALES SANK FIFTY percent TO ONE HUNDRED THIRTY point EIGHT BILLION DOLLARS FROM TWO HUNDRED SIXTY TWO point SEVEN BILLION DOLLARS A YEAR EARLIER THE CORE CORPORATE BOND NEW ISSUE BUSINESS WAS VIRTUALLY NONEXISTENT IN THE THIRD QUARTER quote SAID MARK SEIGEL HEAD OF THE WORLD WIDE DEBT SYNDICATE AT MORGAN STANLEY ADDED GRANT KVALHEIM MANAGING DIRECTOR OF THE CAPITAL MARKETS DESK AT MERRILL LYNCH and COMPANY IN THE THIRD QUARTER THE QUALITY OF THE BUSINESS DIDN'T IMPROVE AND THE TOTAL VOLUME DECLINED THAT'S NOT A NICE COMBINATION NEVERTHELESS MERRILL LARGELY BECAUSE OF ITS STRENGTH IN STOCK AND BOND UNDERWRITING WOUND UP AS THE NUMBER ONE UNDERWRITER OF DOMESTIC NEW ISSUES FOR THE TWENTY SEVENTH CONSECUTIVE QUARTER DURING THE FIRST NINE MONTHS OF THE YEAR MERRILL MANAGED NINETY EIGHT point SEVEN BILLION DOLLARS IN SECURITIES SALES CLAIMING SIXTEEN point EIGHT percent OF THE MARKET AND EARNING EIGHT HUNDRED ONE point FIVE MILLION DOLLARS IN DISCLOSED FEES ACCORDING TO SECURITIES DATA LEHMAN BROTHERS WAS A DISTANT SECOND UNDERWRITING SIXTY FIVE point THREE BILLION DOLLARS OF NEW ISSUES DURING THE FIRST NINE MONTHS OF THE YEAR FOR WHICH IT EARNED TWO HUNDRED NINETY point SIX MILLION DOLLARS IN DISCLOSED FEES LEHMAN WAS RANKED FOURTH IN TERMS OF DISCLOSED FEES SURPASSED BY GOLDMAN SACHS and COMPANY AND MORGAN STANLEY WHICH RESPECTIVELY PULLED IN FIVE HUNDRED EIGHT point THREE MILLION DOLLARS AND FOUR HUNDRED FORTY TWO point NINE MILLION DOLLARS IN DISCLOSED UNDERWRITING FEES DURING THE FIRST NINE MONTHS OF THE YEAR ACCORDING TO SECURITIES DATA BOTH MR. KVALHEIM AND MR. SEIGEL THINK THE OUTLOOK FOR WALL STREET INVESTMENT BANKS WILL IMPROVE IN THE FOURTH QUARTER AN UPTICK IN MERGERS AND ACQUISITIONS IS LIKELY TO LEAD TO ADDITIONAL DEMAND FOR CAPITAL SAID MR. SEIGEL MEANWHILE WITH SHORT TERM INTEREST RATES UP SHARPLY THIS YEAR ISSUERS WHO HAD DECIDED TO FUND THEIR BUSINESSES WITH COMMERCIAL PAPER ARE LIKELY TO RETHINK THEIR STRATEGY AND SELL DEBT TO LOCK IN LONG TERM FINANCING MR. SEIGEL ADDED MEANWHILE MR. KVALHEIM ALSO SEES EXCITING FINANCING OPPORTUNITIES FOR U. S. COMPANIES ABROAD THIS COMPANY'S BERTELSMANN MUSIC GROUP NAMED PETER W. ELDREDGE VICE PRESIDENT SALES FOR ITS R. C. A. SPECIAL PRODUCTS UNIT WHICH MARKETS MUSIC COMPILATIONS AND COLLECTIONS FROM ITS VARIOUS LABELS TO CORPORATIONS FOR USE IN DIRECT MARKETING PREMIUM AND INCENTIVE PROGRAMS MR. ELDREDGE FIFTY YEARS OLD IS A FORMER EXECUTIVE VICE PRESIDENT AND PUBLISHER OF NEWSWEEK MAGAZINE AND MOST RECENTLY WAS EXECUTIVE VICE PRESIDENT AND PUBLISHER OF FRIDAY HOLDINGS A MULTIMEDIA PUBLISHING CONCERN THIS OPERATOR OF SPECIAL EDUCATION SCHOOLS ELECTED THREE NEW OUTSIDE DIRECTORS THOMAS B. CLARK FIFTY TWO YEAR OLD EXECUTIVE VICE PRESIDENT OF GENESCO INCORPORATED IN NASHVILLE TENNESSEE JOSEPH A. FERNANDEZ FIFTY NINE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SCHOOL IMPROVEMENT SERVICES INCORPORATED IN WINTER PARK FLORIDA AND DAVID L. WARNOCK THIRTY SIX PRESIDENT OF T. ROWE PRICE STRATEGIC PARTNERS TWO L. P. IN BALTIMORE THE NEW DIRECTORS SUCCEED HUBERT MCCULLOUGH SIXTY FOUR ROBERT MCCULLOUGH SIXTY THREE AND DONALD JOHNSTON FORTY FIVE WHO DIDN'T STAND FOR RE ELECTION BANK OF MONTREAL SAID ITS HARRIS BANKCORP INCORPORATED SUBSIDIARY IN CHICAGO COMPLETED ITS MERGER WITH SUBURBAN BANCORP INCORPORATED IN A STOCK TRANSACTION VALUED AT APPROXIMATELY TWO HUNDRED THIRTY SEVEN MILLION DOLLARS BANK OF MONTREAL SAID THE MOVE MAKES HARRIS THE THIRD LARGEST COMMUNITY BANKING NETWORK IN THE CHICAGO AREA WITH SEVENTY THREE BRANCHES SUBURBAN'S THIRTY BRANCHES WILL OPERATE UNDER THE HARRIS NAME FROM OCTOBER FIRST HARRIS AND SUBURBAN HAVE COMBINED ASSETS OF SIXTEEN point ONE BILLION DOLLARS UNDER TERMS OF THE TRANSACTION BANK OF MONTREAL ISSUED THREE point NINE THREE FIVE TWO NEW SHARES FOR EACH OF SUBURBAN'S THREE point THREE SEVEN MILLION SHARES ONE OF THE CONFESSED ACCOMPLICES IN LAST WEEK'S ASSASSINATION OF A TOP GOVERNMENT OFFICIAL SAID A CONGRESSMAN ORDERED THE MURDER MEXICO'S ATTORNEY GENERAL SAID LATE YESTERDAY THE CONFESSED PLOTTER ALSO SAID THAT A GROUP HE DIDN'T IDENTIFY HAD PUT TOGETHER A LIST OF PROMINENT POLITICIANS SLATED FOR DEATH BECAUSE THEY WERE PUSHING TOO HARD FOR POLITICAL REFORMS OTHER PEOPLE FAMILIAR WITH THE MURDER INVESTIGATION SAID THE GROUP REFERRED TO BY THE CONFESSED ACCOMPLICE JORGE RODRIGUEZ GONZALEZ APPEARED TO BE A DRUG CARTEL THE CARTELS ARE RESISTING ATTEMPTS TO CRACK DOWN ON THE WIDESPREAD CORRUPTION THAT HAS LET THEM OPERATE SO COMFORTABLY IN MEXICO PARTICULARLY IN MONEY LAUNDERING THE PEOPLE FAMILIAR WITH THE INVESTIGATION SAID THE CARTELS APPEAR TO HAVE TOLD THE CONGRESSMAN TO ARRANGE THE ASSASSINATION AGAIN ILLUSTRATING THE EXTENT TO WHICH THE CARTELS HAVE BEEN ABLE TO INFILTRATE MEXICAN POLITICAL CIRCLES GROWING CONCERN OVER THAT INFILTRATION IS EXPECTED TO HANG OVER NOT ONLY THE DEPARTING ADMINISTRATION OF PRESIDENT CARLOS SALINAS DE GORTARI BUT ALSO THAT OF THE INCOMING PRESIDENT ERNESTO ZEDILLO WHO TAKES OFFICE DECEMBER FIRST THE SLAYING MAY COMPLICATE DOCTOR ZEDILLO'S CHOICES OF AIDES BECAUSE IT CASTS SUCH A BRIGHT LIGHT ON A WEB OF COMPLICITY BETWEEN DRUG LORDS AND SENIOR POLITICIANS HE MAY HAVE ONCE TRUSTED THE TWENTY EIGHT YEAR OLD MAN WHO CONFESSED TO KILLING JOSE FRANCISCO RUIZ MASSIEU ON A MEXICO CITY STREET HAD ALREADY RAISED QUESTIONS ABOUT THE POSSIBLE INVOLVEMENT OF CORRUPT OFFICIALS HE SAID LATE LAST WEEK THAT HE WAS TO BE PAID FIFTEEN THOUSAND DOLLARS BY THE TOP AIDE OF A FEDERAL CONGRESSMAN MANUEL MUNOZ ROCHA YESTERDAY AFTERNOON THE ATTORNEY GENERAL'S OFFICE SAID MR. RODRIGUEZ THE AIDE'S BROTHER HAD SAID THAT THE CONGRESSMAN ARRANGED THE MURDER OF MR. RUIZ MASSIEU WHO WAS THE SECOND RANKING OFFICIAL IN THE RULING PARTY MR. RODRIGUEZ SAID CONGRESSMAN MUNOZ HAD BEEN UNHAPPY WITH THE REFORMS THAT MR. RUIZ MASSIEU HAD BEEN PUSHING ALTHOUGH THE ATTORNEY GENERAL'S OFFICE SAYS MR. RODRIGUEZ APPARENTLY DIDN'T MAKE THE LINK OTHERS FAMILIAR WITH THE INVESTIGATION SAID THE CONGRESSMAN WAS MERELY REFLECTING THE ANGER OF THE DRUG CARTELS MR. RUIZ MASSIEU HAD BEEN SCHEDULED TO BECOME MAJORITY LEADER IN THE CHAMBER OF DEPUTIES WHICH WOULD HAVE GIVEN HIM CONSIDERABLE AUTHORITY TO PUSH FOR POLITICAL CHANGE MR. RUIZ MASSIEU HAD ALSO BEEN MENTIONED AS ONE OF THE TOP TWO CANDIDATES TO BECOME INTERIOR MINISTER IN THE NEW ADMINISTRATION WHICH WOULD HAVE GIVEN HIM ONE OF THE MOST SENIOR POSITIONS IN THE GOVERNMENT AND EVEN MORE LEVERAGE EDUARDO VALLE A FORMER DRUG CARTEL INVESTIGATOR FOR MEXICO'S ATTORNEY GENERAL AND HIMSELF ONCE A FEDERAL CONGRESSMEN SAID THE ASSASSINATION WAS ARMED INSUBORDINATION OF THE CARTEL AGAINST CARLOS SALINAS DE GORTARI SO THAT ZEDILLO WILL NEGOTIATE WITH THEM THE CONFESSED ACCOMPLICE MR. RODRIGUEZ ALSO SAID THERE WAS A PERSONAL VENDETTA BEHIND THE ASSASSINATION HE SAID CONGRESSMAN MUNOZ HAD BEEN IN CONTACT WITH ABRAHAM RUBIO CANALES AN OFFICIAL WHO HAD BEEN CLOSE TO MR. RUIZ MASSIEU DURING HIS TERM AS GOVERNOR BUT WHO MR. RUIZ MASSIEU'S ADMINISTRATION LATER IMPRISONED FOR FRAUD MR. RODRIGUEZ SAID MR. RUBIO WAS ANGRY OVER WHAT HE VIEWED AS HIS BETRAYAL REPEATED ATTEMPTS TO REACH CONGRESSMAN MUNOZ FOR COMMENT WERE UNSUCCESSFUL OTHERS FAMILIAR WITH THE INVESTIGATION SAY THAT A SNAG IN THE SO CALLED GULF CARTEL'S MONEY LAUNDERING OPERATIONS MAY HAVE INFLUENCED THE CARTEL'S LEADER JUAN GARCIA ABREGO TO ORDER THE CONGRESSMAN TO ARRANGE THE ASSASSINATION MR. GARCIA ABREGO AND ANOTHER DRUG LORD HAD LAUNDERED HUNDREDS OF MILLIONS OF DOLLARS THROUGH INVESTMENTS IN THE STATE OF GUERRERO WHERE MR. RUIZ MASSIEU WAS GOVERNOR FROM NINETEEN EIGHTY SEVEN TO NINETEEN NINETY THREE THE PEOPLE SAID BUT MR. RUIZ MASSIEU HAD MANAGED TO PREVENT THEM FROM GETTING TO THEIR MONEY THEY ADDED OTHER HIGH LEVEL GOVERNMENT AND PARTY OFFICIALS HAVE THEORIZED THAT THE CARTELS WERE SEEKING REVENGE AGAINST MR. RUIZ MASSIEU FOR THE CRACKDOWN BY HIS YOUNGER BROTHER MARIO WHO IS MEXICO'S ASSISTANT ATTORNEY GENERAL IN CHARGE OF PROSECUTING NARCOTICS TRAFFICKING CRIMES THE YOUNGER BROTHER HAD BEGUN GOING AFTER THE GULF CARTEL RUN BY MR. GARCIA ABREGO AND THIS YEAR HAD PUT THREE KEY MEMBERS BEHIND BARS INCLUDING MR. GARCIA ABREGO'S NEPHEW GOVERNMENT OFFICIALS SAID THAT FEDERAL CONGRESSMEN HAVE IMMUNITY FROM CRIMINAL PROSECUTIONS UNLESS CONGRESS REVOKES THAT IMMUNITY H. J. HEINZ COMPANY COMPLETED THE ACQUISITION OF THE FAMILY PRODUCTS DIVISION OF GLAXO INDIA LIMITED OF BOMBAY FOR NEARLY SEVENTY MILLION DOLLARS THE DIVISION OF THE UNIT OF LONDON BASED GLAXO HOLDINGS P. L. C. HAS ABOUT FIFTY MILLION DOLLARS IN ANNUAL SALES AND INCLUDES THE COMPLAN BRAND OF ADULT NUTRITION DRINKS GLUCON BEVERAGE MIXES FAREX BABY FOODS GLACTO INFANT FORMULA MINIT MILK DAIRY WHITENERS AND NYCIL TALCUM POWDERS C. P. A. C. INCORPORATED SAID CLOSING ON ITS ACQUISITION OF FULLER BRUSH COMPANY OF GREAT BEND KANSAS WAS DELAYED TO THE END OF OCTOBER TO ALLOW C. P. A. C. AND ITS BANK TIME TO RESOLVE ENVIRONMENTAL ISSUES DISCOVERED AT THE FULLER PLANT DURING DUEDILIGENCE STUDIES TERMS OF THE ACQUISITION HAVEN'T BEEN DISCLOSED C. P. A. C. MAKES CHEMICALS AND POLLUTION CONTROL EQUIPMENT FOR THE IMAGING INDUSTRY FULLER MAKES CHEMICALS AND PRODUCTS FOR INDUSTRIAL AND HOUSEHOLD MARKETS INDRESCO INCORPORATED SAID IT COMPLETED THE ACQUISITION OF THE REFMEX OPERATION OF MEXICO'S INDUSTRIAS PENOLES S. A. DE CV FOR SEVENTY FIVE MILLION DOLLARS REFMEX WITH NINETEEN NINETY THREE REVENUE OF ABOUT SEVENTY ONE MILLION DOLLARS PRODUCES REFRACTORY PRODUCTS USED IN HIGH TEMPERATURE OPERATIONS SUCH AS STEEL MILLS AND CEMENT KILNS INDRESCO A SUPPLIER OF MINING AND CONSTRUCTION EQUIPMENT REPORTED NET INCOME OF EIGHT point SIX MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE ON REVENUE OF ONE HUNDRED EIGHT point FOUR MILLION DOLLARS FOR ITS FISCAL THIRD QUARTER ENDED JULY THIRTY FIRST HOME PROPERTIES OF NEW YORK INCORPORATED SAID IT ACQUIRED A TWO HUNDRED EIGHTY ONE UNIT APARTMENT COMPLEX OLDE MILL OF LIVERPOOL N. Y. FOR SIX point THREE MILLION DOLLARS TRANSFER OF THE TITLE IS PENDING APPROVAL BY THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OF THE ASSUMPTION OF OLDE MILL'S FIVE point ONE MILLION DOLLAR MORTGAGE HOME PROPERTIES IS A REAL ESTATE INVESTMENT TRUST ENGAGED IN THE OWNERSHIP MANAGEMENT ACQUISITION AND DEVELOPMENT OF MULTI FAMILY PROPERTIES IN UPSTATE NEW YORK CANADA'S GROSS DOMESTIC PRODUCT DECLINED ZERO point ONE percent IN JULY FROM JUNE MAINLY AS A RESULT OF A DROP IN RETAIL SALES AND OTHER SERVICE ACTIVITIES ACCORDING TO STATISTICS CANADA A GOVERNMENT AGENCY THE JULY DECLINE FOLLOWED G. D. P. INCREASES OF ZERO point SIX percent IN JUNE AND ZERO point FIVE percent IN MAY G. D. P. IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION STATISTICS CANADA ATTRIBUTED THE JULY DECLINE IN SERVICE ACTIVITIES TO AN UPSWING IN INTEREST RATES IN THE SPRING MANUFACTURING OUTPUT CONTINUED TO RISE IN JULY INCREASING ZERO point THREE percent FROM JUNE DEERE and COMPANY AND THE UNITED AUTO WORKERS SAID THEY EXTENDED THEIR CURRENT LABOR CONTRACT FOR SIX DAYS UNTIL MIDNIGHT THURSDAY THE EXTENSION WAS ARRANGED TO ENABLE THE TWO SIDES TO CONTINUE TALKS COVERING ABOUT ELEVEN THOUSAND UNION REPRESENTED WORKERS IN DEERE'S AGRICULTURAL AND INDUSTRIAL EQUIPMENT OPERATIONS UNDER THE AGREEMENT THE BASIC TERMS OF THE PREVIOUS AGREEMENT CONTINUE INTACT UNTIL THE NEW DEADLINE ROGER R. HEMMINGHAUS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DIAMOND SHAMROCK INCORPORATED WAS NAMED A DIRECTOR OF THIS ELECTRIC UTILITY THE ADDITION OF MR. HEMMINGHAUS FIFTY EIGHT YEARS OLD EXPANDS THE BOARD TO THIRTEEN MEMBERS THE TEN DOMESTIC AUTO MAKERS PLANNED TO BUILD TWO HUNDRED THIRTY ONE THOUSAND THREE HUNDRED FORTY CARS AND TRUCKS LAST WEEK UP SEVEN point FIVE percent FROM TWO HUNDRED FIFTEEN THOUSAND ONE HUNDRED SIXTY FIVE VEHICLES BUILT IN THE SAME WEEK A YEAR EARLIER FORD MOTOR COMPANY AND CHRYSLER CORPORATION REPORTED DAILY AND SATURDAY OVERTIME AT SEVERAL ASSEMBLY PLANTS BUT A PARTS SHORTAGE CREATED BY A LABOR STRIKE AT GENERAL MOTORS CORPORATION LED THE AUTO MAKER TO CANCEL REGULAR PRODUCTION SCHEDULES AS WELL AS PLANNED OVERTIME SHIFTS AT VARIOUS ASSEMBLY PLANTS WESTERN GERMAN INDUSTRIAL OUTPUT FELL A SEASONALLY ADJUSTED THREE percent IN AUGUST FROM A REVISED JULY FIGURE AND ROSE ONE point TWO percent FROM AUGUST NINETEEN NINETY THREE GERMANY'S ECONOMICS MINISTRY SAID IN A PRELIMINARY REPORT THE MINISTRY NOTED THAT A GREATER NUMBER OF SUMMER HOLIDAYS WERE TAKEN IN AUGUST NINETEEN NINETY FOUR THAN HAS BEEN THE AVERAGE IN RECENT YEARS SAYING quote SUCH INFLUENCES AREN'T SHUT OUT BY SEASONAL ADJUSTMENT THE JOBLESS RATE IN FRANCE HELD STEADY IN AUGUST AT TWELVE point SIX percent OF THE WORK FORCE FOR THE THIRD STRAIGHT MONTH BUT THE NUMBER OF JOB SEEKERS ON THE ROLLS OF THE NATIONAL EMPLOYMENT AGENCY ROSE BY ZERO point FIVE percent OR FIFTEEN THOUSAND TWO HUNDRED IN AUGUST UNEMPLOYMENT IS FRANCE'S NUMBER ONE ECONOMIC PROBLEM AND AN EXPLOSIVE POLITICAL ISSUE AS THE CAMPAIGN FOR THE SPRING NINETEEN NINETY FIVE PRESIDENTIAL ELECTION PICKS UP STEAM CODA ENERGY INCORPORATED SAID IT WILL SPEND FOURTEEN point EIGHT MILLION DOLLARS TO DRILL ONE HUNDRED SIXTEEN WELLS IN NINETEEN NINETY FIVE THE ENERGY COMPANY SAID THE PROPOSED CAPITAL BUDGET FOR DEVELOPMENT REPRESENTS A FORTY TWO percent INCREASE FROM ITS NINETEEN NINETY FOUR FIGURE OF TEN point FOUR MILLION DOLLARS CODA SAID IT HAS SPENT NINE point SEVEN MILLION DOLLARS TO DRILL EIGHTY NINE WELLS SO FAR THIS YEAR SEPARATELY THE COMPANY ALSO SAID ITS BANKS INCREASED ITS CREDIT TO ONE HUNDRED FIFTY MILLION DOLLARS FROM ONE HUNDRED MILLION DOLLARS LANDMARK GRAPHICS CORPORATION SAID IT COMPLETED ITS ACQUISITION OF MUNRO GARRETT INTERNATIONAL FOR TEN point NINE MILLION DOLLARS LANDMARK A SEISMIC DATA CONCERN ALSO REPAID ONE point TWO MILLION DOLLARS OF MUNRO GARRETT'S DEBT MUNRO GARRETT BASED IN DALLAS DEVELOPS PETROLEUM ENGINEERING AND ECONOMICS SOFTWARE A LANDMARK OFFICIAL SAID TERMS OF THE TRANSACTION WERE CHANGED TO ALL CASH FROM AN EARLIER OFFER OF CASH AND STOCK WORTHINGTON INDUSTRIES INCORPORATED AND MEXICO'S HYLSA S. A. DE C. V. COMPLETED THEIR PREVIOUSLY ANNOUNCED JOINT VENTURE TO BUILD AND OPERATE A STEEL PROCESSING PLANT IN MONTERREY MEXICO TERMS WEREN'T DISCLOSED THE PLANT IS EXPECTED TO HAVE AN INITIAL ANNUAL PRODUCTION CAPACITY OF ALMOST FIVE HUNDRED THOUSAND NET TONS AND IS SCHEDULED TO BEGIN OPERATIONS IN MID NINETEEN NINETY FIVE STRAINS ARE GROWING BETWEEN THE U. S. AND ONE OF ITS OLDEST BUT INCREASINGLY TROUBLED ALLIES TURKEY A STALWART FRIEND DURING THE PERSIAN GULF WAR TURKEY LATELY HAS BEEN ASSERTING ITS INDEPENDENCE FROM WASHINGTON MUCH TO THE CLINTON ADMINISTRATION'S DISMAY IT IS PUSHING TO RESUME COMMERCIAL TIES WITH SADDAM HUSSEIN IT ALSO OPPOSES THE U. S. DESIRE TO HOLD ELECTIONS FOR THE KURDS IN NORTHERN IRAQ AND SUPPORTS MOVES BY TURKISH CYPRIOTS THAT THREATEN TO THWART EFFORTS TO RESOLVE THE CYPRUS DISPUTE OIL ALSO COULD BE A PROBLEM IN A LITTLE NOTICED AGENDA ITEM ON LAST WEEK'S U. S. RUSSIA SUMMIT PRESIDENT CLINTON AND RUSSIAN PRESIDENT BORIS YELTSIN DISCUSSED THE EIGHT BILLION DOLLARS OIL PACT THAT AZERBAIJAN RECENTLY SIGNED WITH A CONSORTIUM OF WESTERN OIL COMPANIES RUSSIA WHICH HAS A PIECE OF THE DEAL WANTS THE PIPELINE TO RUN ACROSS ITS TERRITORY BUT TURKEY ALSO LOOKING AT THE REVENUE THE PIPELINE WOULD BRING SENT A DIPLOMATIC NOTE TO THE WHITE HOUSE URGING IT TO WEIGH IN ON ANKARA'S SIDE AND NOT GIVE AWAY THE STORE TO MOSCOW THE PIPELINE DECISION WHICH WON'T BE MADE FOR A YEAR OR SO COULD BECOME ANOTHER SOURCE OF TENSION IN U. S. TURKEY RELATIONS IF RUSSIA IS CHOSEN PROBLEMS IN THE RELATIONSHIP AREN'T HELPED BY TURKEY'S DOMESTIC SITUATION BESET BY POLITICAL ECONOMIC ETHNIC AND RELIGIOUS PROBLEMS THE COUNTRY ISN'T TURNING OUT TO BE THE SHINING MODEL OF A SECULAR ISLAMIC STATE THAT THE U. S. HOPED IT WOULD PROVIDE FOR THE FORMER SOVIET REPUBLICS OF CENTRAL ASIA PRIME MINISTER TANSU CILLER'S GOVERNMENT BARELY HOLDS A MAJORITY IN THE NATIONAL ASSEMBLY TURKEY'S ECONOMY IS WEAK HUMAN RIGHTS VIOLATIONS CONTINUE AGAINST TURKEY'S KURDISH MINORITY AND THE INFLUENCE OF RELIGIOUS FUNDAMENTALISM IS ON THE RISE THERE EVEN IS SOME CONCERN THAT TURKEY ONCE THE SOUTHERN FLANK OF THE NORTH ATLANTIC TREATY ORGANIZATION IN THE LINE OF DEFENSE AGAINST THE SOVIET UNION COULD DRIFT AWAY FROM ITS PRO WESTERN ORBIT ALTOGETHER WE MAY BE TALKING ABOUT A COUNTRY OF SIXTY MILLION PEOPLE AT THE CROSSROADS OF EUROPE AND ASIA THAT IS NO LONGER FIRMLY TIED TO THE WEST WARNS BULENT ALIRIZA DIRECTOR OF THE TURKISH STUDIES PROGRAM AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES THE OLD ASSUMPTION THAT TURKEY WILL ALWAYS BE THERE TO RELY ON AS IT WAS DURING THE PERSIAN GULF WAR MAY NOT HOLD quote TURKEY'S AGGRESSIVE AND INDEPENDENT FOREIGN MINISTER MUMTAZ SOYSAL IS EXACERBATING U. S. TURKISH TENSIONS WITH HIS FIERCE DETERMINATION TO PROVE HE ISN'T AN AMERICAN LACKEY HE PERSONALLY OPPOSES LETTING THE U. S. CONTINUE TO USE TURKISH AIR BASES TO AID KURDISH REFUGEES AND MONITOR IRAQ I AM NOT GOING TO SPEND MY LIFE MAKING THE U. S. COMFORTABLE MR. SOYSAL SAID IN A RECENT TURKISH TELEVISION INTERVIEW TURKEY'S PARLIAMENT REVIEWS PERMISSION FOR THE U. S. TO CONDUCT THE OPERATION FROM ITS TERRITORY EVERY SIX MONTHS MR. SOYSAL ALONG WITH PRIME MINISTER CILLER ALSO IS SPEARHEADING A DRIVE TO END ECONOMIC SANCTIONS AGAINST IRAQ TURKEY CLAIMS THE SANCTIONS ARE COSTING IT BILLIONS OF DOLLARS IN LOST REVENUE FROM TRADE AND AN OIL PIPELINE THAT HAS BEEN SHUT DOWN SINCE THE GULF WAR IN AUGUST TURKEY SENT A SIXTY MEMBER TRADE DELEGATION TO BAGHDAD TO DISCUSS FUTURE BUSINESS OPPORTUNITIES THE TURKISH FOREIGN MINISTER ALSO HAS IRKED THE U. S. BY SUPPORTING A MOVE BY TURKISH CYPRIOTS TO REVOKE THEIR COMMITMENT TO SEEK FEDERATION WITH GREEK CYPRIOTS THE U. S. FAVORS FEDERATION AS A SOLUTION TO THE LONGSTANDING CYPRUS DISPUTE HE ALSO OPPOSES ELECTIONS AMONG KURDISH GROUPS IN NORTHERN IRAQ THE U. S. BACKS THEM AS A WAY TO END INTRA KURDISH FEUDING THERE THE CLINTON ADMINISTRATION IS AWARE OF THE PROBLEMS IN ITS RELATIONS WITH TURKEY RECENTLY PETER TARNOFF THE UNDERSECRETARY OF STATE FOR POLITICAL AFFAIRS VISITED ANKARA TO DISCUSS REGIONAL SECURITY BUT IN AN INCREASINGLY COMPLEX WORLD IT IS DIFFICULT TO FIND SOLUTIONS WHEN THE USUAL BASIS FOR THE RELATIONSHIP MILITARY ASSISTANCE IN EXCHANGE FOR THE USE OF MILITARY BASES DOESN'T EXIST ANYMORE EVERYBODY RECOGNIZES THAT A DEMOCRATIC SECULAR STABLE TURKEY IS IN EVERYBODY'S INTEREST SAYS A U. S. EXPERT ON TURKEY quote BUT NOBODY KNOWS HOW TO DEAL WITH IT FRENCH TRAVEL AND RESTAURANT GROUP ACCOR S. A. MAINTAINS ITS EARNINGS TARGET OF SEVEN HUNDRED MILLION TO SEVEN HUNDRED FIFTY MILLION FRANCS ONE HUNDRED THIRTY TWO point SIX MILLION DOLLARS TO ONE HUNDRED FORTY TWO point ONE MILLION DOLLARS THIS YEAR UP FROM SIX HUNDRED FIFTEEN MILLION FRANCS IN NINETEEN NINETY THREE CO CHAIRMEN PAUL DUBRULE AND GERARD PELISSON SAID THE EXECUTIVES ALSO WARNED INVESTORS NOT TO READ TOO MUCH INTO FIRST HALF RESULTS SLATED FOR RELEASE LATER THIS MONTH THEY WILL BE A NONEVENT MR. PELISSON SAID IN AN INTERVIEW ADDING THAT THE BULK OF ACCOR'S CAPITAL GAINS THIS YEAR WILL BE IN THE SECOND HALF AS OPPOSED TO NINETEEN NINETY THREE WHEN THEY WERE IN THE FIRST HALF SOME ANALYSTS EXPECT ACCOR TO SHOW A LOSS FOR THE FIRST HALF SWINGING FROM A YEAR EARLIER SIX MONTH PROFIT OF ONE HUNDRED NINE MILLION FRANCS WHICH WAS HELPED BY FOUR HUNDRED FORTY THREE MILLION FRANCS OF CAPITAL GAINS WHEN ASKED WHETHER A LOSS WAS POSSIBLE THE CO CHAIRMEN CAUTIONED ONLY THAT THE GROUP'S FIRST HALF RESULTS ALWAYS ARE FEEBLE COMPARED WITH THE SECOND HALF WHAT IS IMPORTANT THEY SAID IS THAT THE GROUP MAINTAINS ITS FULL YEAR OBJECTIVE AT THE OPERATING LEVEL MEANWHILE THE ACCOR EXECUTIVES ASSERTED THAT PROFIT SHOULD RISE ABOUT TWENTY FIVE percent FROM NINETEEN NINETY THREE THAT'S THE REAL SIGN OF RECOVERY quote MR. DUBRULE SAID HE NOTED THAT THE OPERATING EARNINGS GAIN IN NINETEEN NINETY FOUR WILL BE CONCENTRATED ALMOST EXCLUSIVELY ON THE LAST EIGHT MONTHS OF THE YEAR MARKING THE POINT AT WHICH CONDITIONS IN THE GROUP'S CORE HOTEL ACTIVITIES TURNED THE CORNER AND STARTED SHOWING REAL IMPROVEMENT ACCOR'S HOTEL CHAINS INCLUDE SOFITEL NOVOTEL IBIS FORMULE ONE AND MOTEL SIX THE U. S. BUDGET CHAIN PURCHASED IN NINETEEN NINETY MR. DUBRULE OBSERVED THAT IN FRANCE WHICH PRODUCED ABOUT THIRTY EIGHT percent OF GROUP REVENUE LAST YEAR OCCUPANCY RATES BOTTOMED OUT LAST OCTOBER BUT PRICES REMAINED WEAK UNTIL ABOUT APRIL SO WE HAD A SECOND QUARTER SHOWING RECOVERY AND A STRONG RECOVERY IN THE THIRD QUARTER THAT'S WHERE THE REAL ACCELERATION HAS BEEN HE SAID NOTABLY IN SEPTEMBER AT MOTEL SIX MEANWHILE WHICH POSTED A RELATIVELY MEAGER SIXTY SEVEN percent OCCUPANCY RATE LAST YEAR MR. PELISSON SAID THE RATE WON'T BE MUCH DIFFERENT IN NINETEEN NINETY FOUR WITH PERHAPS A SLIGHT DECLINE IN THE FIRST NINE MONTHS AND A GOOD RECOVERY IN THE LAST QUARTER quote MOTEL SIX HASN'T LIVED UP TO EXPECTATIONS BECAUSE HIGHER RATE HOTELS IN THE U. S. STOLE CUSTOMERS DURING THE ECONOMIC SLUMP BY KEEPING PRICES LOW GENE ERKSINE FIFTY NINE YEARS OLD WAS NAMED TO THE NEW POSITION OF CHIEF EXECUTIVE OFFICER OF CRESCENT AIRWAYS INCORPORATED THE OPERATING SUBSIDIARY OF THIS HELICOPTER COMPANY MR. ERSKINE REMAINS PRESIDENT AND CHIEF EXECUTIVE OF HONOLULU BASED PAPILLON HAWAIIAN HELICOPTERS WHICH CRESCENT AIRWAYS CORPORATION ACQUIRED THIS YEAR MICHAEL ROACH WAS ELECTED TO THE BOARD OF THIS REGIONAL CARRIER MR. ROACH FIFTY ONE YEARS OLD IS PRESIDENT OF SAN FRANCISCO AIRLINE CONSULTING CONCERN ROBERTS ROACH and ASSOCIATES AND WAS THE CO FOUNDER AND FIRST PRESIDENT OF AMERICA WEST AIRLINES HIS ELECTION GIVES THE BOARD TEN MEMBERS THIS ELECTRONICS CONCERN SAID BILL TIPPETT EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED TO PURSUE OTHER INTERESTS MR. TIPPETT WILL REMAIN A CONSULTANT BUT MOST OF HIS DUTIES WILL BE ASSUMED BY JIM RISHER PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY AS SOUTH AFRICAN PRESIDENT NELSON MANDELA TOURS THE U. S. THIS WEEK TO SEEK INVESTMENT IN HIS COUNTRY MANY AFRICAN AMERICAN ENTREPRENEURS ALREADY ARE ESTABLISHING BEACHHEADS THERE AND NOW THEIR GRASS ROOTS ENTREPRENEURIAL ACTIVITY IS ABOUT TO RECEIVE A QUARTER BILLION DOLLAR FINANCIAL BOOST THE OVERSEAS PRIVATE INVESTMENT CORPORATION PLANS TO ANNOUNCE THE CREATION SOON OF TWO PRIVATE EQUITY FUNDS TO FINANCE U. S. BUSINESSES IN SOUTH AFRICA ONE WILL PROVIDE SEVENTY FIVE MILLION DOLLARS IN EQUITY CAPITAL TO SOUTH AFRICAN BUSINESSES WITH A U. S. CONNECTION AND THE OTHER WILL ALLOT SEVENTY FIVE MILLION DOLLARS PRIMARILY TO U. S. BUSINESSES RE ENTERING THE SOUTH AFRICAN MARKET THE CORPORATION BASED IN WASHINGTON D. C. IS A FEDERALLY SUPPORTED INVESTMENT AGENCY AT THE SAME TIME THE U. S. AGENCY FOR INTERNATIONAL DEVELOPMENT WILL ANNOUNCE AS EARLY AS THIS WEEK THE FORMATION OF A ONE HUNDRED MILLION DOLLAR VENTURE CAPITAL FUND FOR SOUTH AFRICA BUSINESSES ESPECIALLY THOSE THAT FORM PARTNERSHIPS WITH U. S. COMPANIES PEOPLE CLOSE TO THE AGENCY SAY AFRICAN AMERICAN ENTREPRENEURS ARE EXPECTED TO BENEFIT HEAVILY FROM ALL THESE NEW FUNDS THE INFUSION OF PUBLIC AND PRIVATE CAPITAL COINCIDES WITH AN UPSURGE IN INVESTMENT IN SOUTH AFRICA BY SMALL AFRICAN AMERICAN BUSINESSES FOR EXAMPLE BLACK ENTERTAINMENT TELEVISION THE ONLY BLACK OWNED CABLE T. V. NETWORK IN THE U. S. RECENTLY BEGAN BROADCASTING TO SOUTH AFRICAN AUDIENCES A LA JOLLA CALIFORNIA STARTUP HAS BEGUN EXPLORING FOR SOUTH AFRICAN DIAMONDS A WASHINGTON D. C. ENTREPRENEUR HAS STARTED A CHAIN OF LAUNDRY CENTERS AND A JOINT VENTURE BETWEEN AN AFRICAN AMERICAN COMPANY AND A BIG U. S. CORPORATION HAS JOINED THE RACE TO RUN A NATIONAL ON LINE LOTTERY BUSINESS quote IN ALL MY TEN YEARS OF WORKING IN AFRICA I HAVE NEVER SEEN SUCH AN INFLUX OF AFRICAN AMERICAN BUSINESSES SAYS DONALD KEENE REGIONAL LEGAL ADVISER FOR SOUTHERN AFRICA AT THE U. S. AID OFFICE IN PRETORIA IN A BULLISH SIGN HE SAYS A LOT OF AFRICAN AMERICAN BUSINESSES ARE COMING JUST TO SCOUT AROUND FOR FUTURE OPPORTUNITIES COMMERCE SECRETARY RON BROWN HAILS THE NEW EQUITY FUNDS AS AN OUTGROWTH OF THE CLINTON ADMINISTRATION'S EFFORTS TO HELP REBUILD SOUTH AFRICA LAST NOVEMBER MR. BROWN LED THE FIRST U. S. TRADE DELEGATION TO POST APARTHEID SOUTH AFRICA THIS WEEK THE COMMERCE DEPARTMENT IS SPONSORING A MINORITY MATCHMAKER TRADE MISSION TO SOUTH AFRICA AT THE SAME TIME ABOUT FIFTY U. S. BUSINESSES ARE ALSO PARTICIPATING THIS WEEK IN A MADE IN U. S. A. quote TRADE FAIR AT JOHANNESBURG THE TRADE AND INVESTMENT OPPORTUNITIES EMERGING IN THE NEW SOUTH AFRICA REPRESENT ENORMOUS POTENTIAL FOR AFRICAN AMERICAN ENTREPRENEURS SECRETARY BROWN SAYS TO BE SURE BUSINESS OBSTACLES REMAIN AMERICANS COMPLAIN THAT SOUTH AFRICA'S FOREIGN EXCHANGE CONTROLS ARE A DISINCENTIVE TO INVESTING EVEN SO JUDE KEARNEY A SENIOR OFFICIAL AT THE INTERNATIONAL TRADE ADMINISTRATION IN WASHINGTON THINKS MR. MANDELA IS COMMITTED TO OPENING UP TRADE HE EXPECTS THE SOUTH AFRICAN GOVERNMENT TO LOWER TARIFFS AND EASE OTHER TRADE RESTRICTIONS THE SOUTH AFRICAN CENTRAL BANK ITSELF RECENTLY INDICATED THAT IT IS CONSIDERING EASING CERTAIN EXCHANGE CONTROLS OTHERS ARE MORE BULLISH SOUTH AFRICA IS A BIG NEW MARKET WITH MILLIONS OF UNTAPPED CONSUMERS SAYS JOHN TYSON A WASHINGTON ENTREPRENEUR AND DEALMAKER WITH LONG TIES TO AFRICA EVEN THOUGH THE COUNTRY HAS GREAT POVERTY IT ALSO HAS A BUSINESS INFRASTRUCTURE IN PLACE MR. TYSON SAYS AND SOUTH AFRICA DOESN'T HAVE TO GRAPPLE WITH THE PROBLEMS OF SCARCE CAPITAL AND POOR COMMUNICATIONS AND TRANSPORTATION THAT HINDER SUCH EMERGING MARKETS AS INDIA AND CHINA HE ADDS MR. TYSON SHOULD KNOW TOGETHER WITH JOHANN DE VILLIERS AN EXPATRIATE SOUTH AFRICAN HE HAS LAUNCHED GLOBAL DIAMOND RESOURCES INCORPORATED TO EXPLORE AND DEVELOP DIAMOND CONCESSIONS IN SOUTH AFRICA THE ENTERTAINMENT INDUSTRY IS ACTIVE TOO EACH NIGHT BEGINNING AT EIGHT P. M. BET INTERNATIONAL INCORPORATED A UNIT OF BLACK ENTERTAINMENT TELEVISION BROADCASTS EIGHT HOURS OF U. S. PRODUCED TELEVISION PROGRAMS TO SOUTH AFRICAN VIEWERS THE PROGRAMS INCLUDE PUBLIC AFFAIRS SHOWS SUCH AS BET NEWS AND FOR BLACK MEN ONLY AND SUCH ENTERTAINMENT OFFERINGS AS BET ON JAZZ DISTRIBUTED IN SOUTH AFRICA BY A LOCAL PARTNER THEY CURRENTLY ARE CARRIED BY NNTV A LOCAL NETWORK WITH ABOUT FIVE HUNDRED THOUSAND SUBSCRIBERS quote THE PROGRAMMING HAS HAD TREMENDOUS IMPACT SAYS GEORGE AMOAH VICE PRESIDENT OF BET INTERNATIONAL BUT HE CONCEDES THE VENTURE WON'T BE PROFITABLE UNTIL THE PROGRAMS ARE CARRIED BY MORE STATIONS AND GENERATE REVENUES FROM ADVERTISING AND SUBSCRIBERS' FEES UNTIL THEN HE SAYS OUR GOAL IS TO EXPOSE THE PRODUCT TYDOW INCORPORATED A WASHINGTON D. C. JOINT VENTURE ALSO IS JOCKEYING FOR A FOOTHOLD IN THE COUNTRY ONE OF THE PARTNERS GOVA INCORPORATED OF RICHMOND VIRGINIA CURRENTLY PROVIDES ALL THE SERVICING AND TRAINING FOR THE VIRGINIA LOTTERY IT SAYS IT IS TEAMING UP WITH A MAJOR SOFTWARE COMPANY TO DESIGN THE TELECOMMUNICATIONS NETWORK THAT WILL FORM THE CORE OF THE COUNTRY'S ON LINE LOTTERY OPERATION GLOBAL DIAMOND RESOURCES THE DIAMOND EXPLORATION VENTURE ALREADY IS OPERATIONAL MESSRS. TYSON AND VILLIERS SAY THEY POOLED SOME OF THEIR OWN MONEY TOGETHER WITH THAT FROM OTHER INVESTORS TO CREATE A ONE MILLION DOLLAR START UP POOL WITH THAT MONEY THEY ACQUIRED AN OPTION TO EXPLORE FOR DIAMONDS ON A PRIVATELY OWNED FARM THE FARM CONTAINS A DIAMOND VEIN THAT INITIALLY WAS MINED BEFORE THE WORLD WIDE DEPRESSION OF THE NINETEEN THIRTIES SAYS MR. TYSON BUT THE CURRENT OWNERS ACQUIRED THE LAND AND CONVERTED IT INTO A DAIRY FARM THEY DIDN'T WANT THE ENGLISH CONTROLLED MINING COMMUNITY TO HAVE ACCESSS quote HE SAYS BUT AFTER THE OWNER'S DEATH THE HEIRS AGREED TO LET GLOBAL DIAMOND RESOURCES EXPLORE THE PROPERTY THE COMPANY CURRENTLY HAS TEN EMPLOYEES INCLUDING TWO GEOLOGISTS AND A MINING ENGINEER ON THE PROJECT FOR GLOBAL DIAMOND RESOURCES WHICH ALSO IS APPLYING FOR EXPLORING RIGHTS ON PUBLIC LANDS THE CONCESSIONS ARE ONLY A FIRST STEP THE COMPANY PLANS TO RAISE ADDITIONAL FUNDS THROUGH AN INITIAL PUBLIC OFFERING OF STOCK AND TO USE THAT CAPITAL TO EXPLORE NEW MINING CONCESSIONS WHEN THE COMPANY'S MINES ARE IN FULL OPERATION IN ABOUT TWO YEARS GLOBAL DIAMOND SAYS IT HOPES TO HAVE NEARLY TWO THOUSAND EMPLOYEES INCLUDING MARKETING PROFESSIONALS AS WELL AS DIAMOND CUTTERS AND MINE WORKERS AN INTERNATIONAL RULING ON FUEL EFFICIENCY STANDARDS FOR CARS IS BEING CITED BY SUPPORTERS AS EVIDENCE THAT A NEW WORLD TRADE PACT DOESN'T THREATEN U. S. ENVIRONMENTAL LAWS THE RULING BY A PANEL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE UPHELD LAWS PROMOTING FUEL EFFICIENCY FOR NEW CARS SOLD IN THE U. S. REJECTING A NINETEEN NINETY THREE CHALLENGE BY THE EUROPEAN COMMUNITY NOW THE EUROPEAN UNION THE DECISION WAS A PLEASANT SURPRISE TO ENVIRONMENTALISTS WHO WERE STEELING THEMSELVES FOR A G. A. T. T. RULING AGAINST THE STANDARDS THE CLINTON ADMINISTRATION FACING A CONGRESSIONAL BATTLE OVER A BROAD NEW G. A. T. T. AGREEMENT HAILED THE DECISION THE FINDING SHOWS THAT G. A. T. T.'S TRADE RULES CAN BE COMPATIBLE WITH OUR LAWS THAT CONSERVE NATURAL RESOURCES AND PROTECT THE ENVIRONMENT U. S. TRADE REPRESENTATIVE MICKEY KANTOR SAID IN A WRITTEN STATEMENT I WOULD EXPECT THE PANEL'S REPORT TO HELP STEER THE DEBATE WHEN G. A. T. T. COUNTRIES TAKE UP TRADE AND ENVIRONMENT ISSUES UNDER THE NEW WORLD TRADE ORGANIZATION CREATED BY THE NEW TRADE PACT BUT JUSTIN WARD A TRADE SPECIALIST AT THE NATURAL RESOURCES DEFENSE COUNCIL SAID quote THIS DECISION LAUDABLE AS IT SEEMS TO BE DOES NOT CURE CERTAIN THINGS THAT WE CONSIDER TO BE WRONG WITH THE PENDING AGREEMENT WHICH HE SAID COULD IN EFFECT REVERSE THE BASIS OF THE FAVORABLE FUEL EFFICIENCY RULING HE SAID HIS GROUP WOULD CONTINUE TO OPPOSE THE G. A. T. T. ACCORD SENATE MAJORITY LEADER GEORGE MITCHELL SAID FRIDAY THAT THE SENATE WILL BEGIN DEBATE ON THE G. A. T. T. ACCORD NOVEMBER THIRTIETH WHEN THE SENATE RETURNS FROM AN ELECTION RECESS AND VOTE DECEMBER FIRST THE HOUSE IS TENTATIVELY SCHEDULED TO TAKE UP THE MEASURE THIS WEEK THE G. A. T. T. PANEL'S FINDING IS A BLOW TO MERCEDES BENZ A. G. AND BAYERISCHE MOTOREN WERKE A. G. WHICH HAVE BEEN HIT HARD BY THE U. S. MEASURES IN QUESTION ONE OF THESE IS THE NINETEEN SEVENTY FIVE LAW ESTABLISHING CORPORATE AVERAGE FUEL ECONOMY CALLED CAFE REQUIREMENTS FOR CARS SOLD IN THE U. S. BASED ON A COMPANY'S ENTIRE FLEET OF CARS MANUFACTURERS WHO DON'T MEET THE STANDARD CURRENTLY TWENTY SEVEN point FIVE MILES PER GALLON MUST PAY FINANCIAL PENALTIES WHICH HAVE BEEN ESPECIALLY SEVERE FOR MERCEDES BENZ AND B. M. W. THE OTHER TWO MEASURES CHALLENGED BY THE E. U. WERE A GAS GUZZLER quote TAX ENACTED IN NINETEEN SEVENTY EIGHT WHICH AFFECTS CARS WITH A FUEL EFFICIENCY OF LESS THAN TWENTY TWO point FIVE MILES PER GALLON AND A LUXURY TAX ENACTED IN NINETEEN NINETY WHICH AFFECTS CARS PRICED AT MORE THAN THIRTY THOUSAND DOLLARS BOTH TAXES HAVE FALLEN HEAVILY ON EUROPEAN IMPORTS THE G. A. T. T. PANEL DID FIND FOR THE E. U. ON A PROVISION IN THE CAFE LAW THAT ESTABLISHES SEPARATE DOMESTIC AND IMPORT FLEETS FOR THE PURPOSE OF CALCULATING FUEL ECONOMY BUT THIS PART OF THE LAW INSERTED AT THE BEHEST OF UNIONS THAT FEARED THAT U. S. AUTO MAKERS WOULD SHIFT MANUFACTURE OF SMALL CARS OVERSEAS DOESN'T AFFECT E. U. AUTO MAKERS U. S. TRADE OFFICIALS CONTEND THEREFORE THEY SAY THE U. S. ISN'T OBLIGED TO MAKE ANY CHANGES IN ITS CAFE LAW DON GOLDBERG STAFF ATTORNEY FOR THE CENTER FOR INTERNATIONAL ENVIRONMENTAL LAW DISPUTED THIS INTERPRETATION HE SAID THE DECISION COULD LEAD THE G. A. T. T. COUNCIL TO PRESSURE THE U. S. TO CHANGE THAT PORTION OF THE CAFE LAW PROVIDING FOR SEPARATE ACCOUNTING OF DOMESTIC AND FOREIGN FLEETS MOREOVER HE SAID THIS DECISION COMES IN THE WAKE OF TWO VERY BAD PANEL DECISIONS REFERRING TO LAST MAY'S G. A. T. T. RULING AGAINST A U. S. BOYCOTT OF TUNA CAUGHT BY FISHING METHODS THAT ALSO KILL DOLPHINS AND A SIMILAR G. A. T. T. RULING ON THE MATTER IN NINETEEN NINETY ONE BOTH DREW HEAVY CRITICISM FROM ENVIRONMENTAL GROUPS BUT DANIEL ESTY DIRECTOR OF THE YALE CENTER FOR ENVIRONMENTAL LAW AND POLICY SAID THE DECISION SHOWS THAT THE G. A. T. T. IS LEARNING TO ACCOMMODATE ECOLOGICAL CONCERNS ADDING ENVIRONMENTALISTS quote SHOULD BE QUITE PLEASED THAT THEIR MESSAGE SEEMS TO BE GETTING THROUGH NOW EMERGING FROM WALL STREET'S TWO BIRDS WITH ONE STONE DEPARTMENT IS THE SPLIT OFF AN UNUSUAL TWIST ON THE TRADITIONAL TAX FREE SPINOFF THE TECHNIQUE OFFERS EVERYTHING A SPINOFF DOES AND A LITTLE MORE DIVESTITURE OF A SUBSIDIARY WITH MINIMAL DILUTION A STOCK BUYBACK WITHOUT THE CASH IN A SPLIT OFF A PARENT COMPANY DOESN'T JUST DISTRIBUTE A SUBSIDIARY'S STOCK EQUALLY TO EACH OF ITS SHAREHOLDERS INSTEAD THE COMPANY OFFERS A CERTAIN AMOUNT OF THE SUBSIDIARY'S STOCK IN EXCHANGE FOR SOME OF ITS OWN SHARES HELD BY THE PUBLIC THIS ALLOWS NOT ONLY FOR THE DIVESTITURE OF A SUBSIDIARY BUT ACHIEVES THE ADDED BENEFIT TO THE PARENT OF AN EFFECTIVE STOCK REPURCHASE WITHOUT USING ANY CASH THE ENTIRE TRANSACTION CAN BE COMPLETED TAX FREE UNDER THE SAME TERMS THAT A REGULAR SPINOFF CAN BE SAID LEHMAN BROTHERS INCORPORATED TAX AND ACCOUNTING ANALYST ROBERT WILLENS WHO RECENTLY ISSUED A REPORT ON THE POPULARITY OF SPLIT OFFS ALL AT ONCE SEVERAL COMPANIES HAVE DECIDED TO DEPLOY THIS OBSCURE MANEUVER COOPER INDUSTRIES INCORPORATED IS PLANNING A SPLITOFF TO DIVEST ITSELF OF ITS PETROLEUM AND INDUSTRIAL EQUIPMENT BUSINESS PRICE slash COSTCO INCORPORATED IS USING THE TECHNIQUE TO DIVIDE ITSELF IN TWO A SPLIT OFF IS ALSO AT THE HEART OF A COMPLEX TRANSACTION BY WHICH TIMES MIRROR COMPANY PLANS TO MERGE ITS CABLE OPERATIONS INTO A NEW JOINT VENTURE AND CREATE A SEPARATE COMPANY FOR THE REST OF ITS ASSETS MR. WILLENS SAID THE ANALYST ALSO SUGGESTED THAT A SPLITOFF IS LIKELY TO BE CONSIDERED SERIOUSLY BY TURNER BROADCASTING SYSTEM INCORPORATED AS A WAY TO DISENTANGLE ITSELF FROM TIME WARNER INCORPORATED WHICH OWNS A BIG STAKE IN TURNER UNDER ONE POSSIBLE SCENARIO TURNER COULD CREATE A SUBSIDIARY CONSISTING OF ASSETS THAT WOULD BE DISTRIBUTED TO TIME WARNER IN EXCHANGE FOR THE TURNER SHARES THAT TIME WARNER OWNS MR. WILLENS SAID THE COMPANIES HAVE BEEN SEARCHING FOR A WAY TO PART COMPANY A PROCESS THAT PROBABLY QUICKENED THIS WEEK WITH CHAIRMAN TED TURNER'S CARPING ABOUT TIME WARNER'S INTERFERENCE WITH A BID TO BUY N. B. C. FROM GENERAL ELECTRIC COMPANY A SPLIT OFF WOULD ALMOST DEFINITELY COME QUICKLY TO THE SURFACE IN ANY TALKS AIMED AT SEPARATING THE INTERESTS OF TIME WARNER AND TURNER MR. WILLENS SAID LEHMAN BROTHERS' MR. WILLENS SAID THAT ALTHOUGH SPLIT OFFS HAVE BEEN RARE AMONG BIG PUBLICLY HELD COMPANIES THEY ARE RELATIVELY ROUTINE IN THE WORLD OF CLOSELY HELD FIRMS IF TWO BUSINESS PARTNERS THE SOLE SHAREHOLDERS OF A COMPANY WANT TO GO THEIR SEPARATE WAYS A LOGICAL WAY TO DO SO IS THROUGH A SPLIT OFF MR. WILLENS SAID A NEW SUBSIDIARY WOULD BE CREATED HOLDING HALF THE FIRM'S ASSETS AND ITS STOCK WOULD BE GIVEN TO ONE PARTNER IN EXCHANGE FOR HALF THE STAKE OF THE ORIGINAL COMPANY BUT A PUBLIC FIRM MIGHT HESITATE TO TRY A SPLIT OFF BECAUSE IT REQUIRES A BIT OF GAMESMANSHIP WHICH ADDS TO THE RISK AFTER ALL IN ORDER FOR THE DEAL TO BE TAX FREE A PARENT COMPANY HAS TO DISTRIBUTE AT LEAST EIGHTY percent OF THE SUBSIDIARY'S SHARES THAT MEANS THE COMPANY HAS TO SET AN ATTRACTIVE RATIO IN OFFERING TO EXCHANGE A SUBSIDIARY'S STOCK FOR ITS OWN SHARES BUT IF A COMPANY IS TOO GENEROUS AND OFFERS TOO MUCH NEW STOCK FOR ITS OWN THE INTERNAL REVENUE SERVICE COULD DECIDE THAT SHAREHOLDERS HAVE RECEIVED AN EXTRA PAYMENT FOR WHICH THEY WOULD BE TAXED MR. WILLENS SAID IN HIS RESEARCH REPORT INVESTMENT BANKERS HAVE DEVISED OTHER NOVEL MEANS FOR ACCOMPLISHING OBJECTIVES SIMILAR BUT NOT IDENTICAL TO THOSE ACHIEVED IN A SPLIT OFF ONE TOOL DEVISED BY SALOMON BROTHERS INCORPORATED IS THE ISSUANCE OF DECS OR DEBT EXCHANGEABLE FOR COMMON STOCK FOR EXAMPLE AMERICAN EXPRESS COMPANY WHICH HAS A BIG HOLDING IN FIRST DATA CORPORATION SOLD DECS THAT EVENTUALLY WILL CONVERT TO ITS FIRST DATA STAKE THE BIG DIFFERENCE BETWEEN A SPLIT OFF AND THE DECS STRATEGY IS THAT A DECS ISSUER TYPICALLY OWNS A RELATIVELY SMALL PIECE OF THE SUBSIDIARY AND SO DOESN'T HAVE THE OPTION OF A SPINOFF ANOTHER SITUATION IN WHICH A COMPANY MIGHT SHY AWAY FROM A SPLIT OFF IS WHEN IT HOPES TO DIVEST ITSELF OF A UNIT ITS SHAREHOLDERS DON'T PARTICULARLY WANT TO OWN THIS FOR INSTANCE APPARENTLY WAS THE CASE LAST SPRING WHEN AMERICAN EXPRESS SPUN OFF ITS STRUGGLING LEHMAN BROTHERS HOLDINGS INCORPORATED SUBSIDIARY TO ITS SHAREHOLDERS AFTER THE SPINOFF AMERICAN EXPRESS SHARES ROSE AND LEHMAN SHARES CAME UNDER HEAVY SELLING PRESSURE BEFORE THE RECENT FLURRY OF SPLIT OFF ANNOUNCEMENTS THE MOST PROMINENT SPLITOFF WAS PROBABLY CABOT CORPORATION'S DIVESTITURE OF CABOT OIL and GAS CORPORATION IN NINETEEN NINETY ONE MR. WILLENS SAID MR. WILLENS SAID HE HAS NO GOOD EXPLANATION FOR WHY THE TECHNIQUE HAS BEEN REDISCOVERED EXCEPT THAT IT'S A GOOD IDEA THAT MIGHT BE COMING OF AGE quote HE SAID THOUGH THAT ONCE LEGITIMATE COMPANIES START TO DO SOMETHING IT BECOMES SORT OF A LANDSLIDE HE SAID I'M CONFIDENT OTHERS WILL FOLLOW LEHMAN ALONG WITH DONALDSON LUFKIN and JENRETTE SECURITIES CORPORATION IS ADVISING PRICE slash COSTCO ON ITS PLANNED SPLIT OFF ON THIS DAY IN NINETEEN OH SIX MY FATHER WAS BORN IN DUSTY SEGOVILLE TEXAS AND ON THE SAME DAY IN NINETEEN NINETY THREE MY SON ARMY RANGER SARGENT JAMES CASEY JOYCE WAS KILLED ON A DUSTY STREET IN MOGADISHU SOMALIA AT THE AGE OF TWENTY FOUR TODAY I'LL CALL MY DAD AND WISH HIM WELL ON HIS EIGHTY EIGHTH BIRTHDAY AND AT A CEREMONY AT ARLINGTON NATIONAL CEMETERY I'LL OBSERVE THE FIRST ANNIVERSARY OF MY FAMILY'S MOST TRAGIC LOSS THE CEREMONY WAS ARRANGED BY NO GREATER LOVE A NONPROFIT GROUP THAT WAS FORMED TO HONOR THE MEMORY OF THOSE WHO GAVE THEIR LIVES IN DEFENSE OF THIS NATION OR WHO WERE VICTIMS OF TERRORISM TODAY THEY WILL REMEMBER THE FORTY FOUR MEMBERS OF THE ARMED FORCES WHO DIED IN SOMALIA DURING OPERATION RESTORE HOPE MY FAMILY WILL BE THERE ALONG WITH THE FAMILIES OF THE OTHER AMERICAN CASUALTIES OF SOMALIA IT WILL BE THE FIRST TIME THAT MOST OF US HAVE MET EVEN THOUGH WE SHARE AN UNENVIABLE BOND WHILE WE HAVEN'T HAD A CHANCE TO DISCUSS IT YET I'M SURE WE SHARE SOMETHING ELSE TOO THE HOPE THAT THIS DAY OF REMEMBRANCE WILL REMIND THE NATION OF THE TERRIBLE PRICE WE PAY WHEN OUR BRAVE YOUNG MEN AND WOMEN IN UNIFORM ARE SENT TO ENFORCE AN INVALID FOREIGN POLICY AS WE DEDICATE THE TREE AND THE STONE MONUMENT IN ARLINGTON TO THOSE FORTY FOUR YOUNG LIVES I'LL ALSO BE REFLECTING ON ANOTHER MEMORIAL TWO MILES AWAY THE ONE THAT CARRIES THE NAMES OF FIFTY EIGHT THOUSAND ONE HUNDRED NINETY ONE OF MY OLD COMRADES I ALWAYS HOPED THAT THE TERRIBLE PRICE MY GENERATION PAID IN VIETNAM WOULD NOT HAVE TO BE PAID BY MY CHILDREN OR MY GRANDCHILDREN BUT THAT HOPE WAS DASHED LAST OCTOBER THIRD NOW I SIMPLY HOPE THAT THE SACRIFICES OF THOSE FORTY FOUR BRAVE YOUNG MEN ARE NOT FORGOTTEN THAT IS WHY THE NO GREATER LOVE CEREMONY TODAY IS SO IMPORTANT ALREADY THE MEDIA'S MEMORY OF SOMALIA IS BEGINNING TO FADE REPORTERS AND COLUMNISTS CONTINUALLY REFER TO PRESIDENT CLINTON'S FOREIGN POLICY MISADVENTURES AND FEW MENTION SOMALIA THREE DAYS BEFORE AMERICAN TROOPS WERE SENT INTO HAITI THE NEW YORK TIMES REPORTED THAT THE ANTICIPATED INVASION WOULD BE THE FIRST TIME MR. CLINTON HAD ORDERED AMERICAN SOLDIERS INTO GROUND COMBAT WHAT ABOUT SOMALIA PRESIDENT BUSH SENT THE FIRST CONTINGENT OF TWENTY FIVE THOUSAND TROOPS TO ENSURE STARVING SOMALIS WERE FED BY THE SPRING OF NINETEEN NINETY THREE ALL BUT FOUR THOUSAND FIVE HUNDRED TROOPS HAD BEEN WITHDRAWN AND THE MISSION WAS TURNED OVER TO THE UNITED NATIONS THE RESPONSIBILITY FOR WHAT HAPPENED TO AMERICAN TROOPS IN SOMALIA AFTER THAT LIES AT THE FEET OF THE CURRENT WHITE HOUSE RESIDENT OUR POLICY IN SOMALIA CHANGED DRAMATICALLY WHEN PRESIDENT CLINTON LET THE U. N. SECRETARY GENERAL TALK HIM INTO SWITCHING A U. N. HUMANITARIAN MISSION INTO A UNILATERAL U. S. MANHUNT IN AUGUST NINETEEN NINETY THREE MR. CLINTON ORDERED A FOUR HUNDRED MAN RANGER TASK FORCE TO CAPTURE SOMALI WARLORD MOHAMMED FARAH AIDID LIKE OUR FIRST NAIVE FORAY INTO VIETNAM THREE DECADES EARLIER THIS NEW MISSION WAS ILL CONCEIVED THE TASK FORCE WAS TOO SMALL THE RANGERS WERE DENIED THEIR NORMAL AIR SUPPORT TANKS AND ARMORED PERSONNEL CARRIERS THAT COULD HAVE REINFORCED OR EXTRACTED THEM WERE ALSO DENIED AND ON OCTOBER THIRD WHEN THEY WERE OUTNUMBERED THIRTY TO ONE THE RANGERS DESPERATELY NEEDED ALL THOSE RESOURCES WITHIN THIRTY DAYS PRESIDENT CLINTON REALIZED WHAT MOST MILITARY PROFESSIONALS KNEW FROM THE OUTSET IT WAS VIRTUALLY IMPOSSIBLE TO TRACK DOWN AN URBAN GUERRILLA WARFARE EXPERT IN THE BACK ALLEYS OF MOGADISHU WHERE HE WAS ONCE THE POLICE CHIEF IRONICALLY IT WAS FORMER PRESIDENT CARTER WHO HAD TOLD PRESIDENT CLINTON THAT A MILITARY SOLUTION WOULDN'T WORK BUT A DIPLOMATIC ONE WOULD BECAUSE OF A PREVIOUS RELATIONSHIP WITH GENERAL AIDID PRESIDENT CARTER HAD MADE CONTACT WITH HIM AND REPORTED TO PRESIDENT CLINTON IN THE MIDDLE OF LAST SEPTEMBER THAT GENERAL AIDID WAS READY TO NEGOTIATE IF WE HAD ALREADY DECIDED IN MID TO LATE SEPTEMBER TO NEGOTIATE WITH GENERAL AIDID WHY WAS THE OCTOBER THIRD RAID LAUNCHED THAT RESULTED IN THE DEATHS OF EIGHTEEN MORE AMERICANS I GOT THE CHANCE TO ASK PRESIDENT CLINTON THAT QUESTION FACE TO FACE ON MAY TWELFTH THE ANSWER WAS quote I DON'T KNOW HE TOLD ME HE DIDN'T WANT TO MICROMANAGE THE MILITARY AND HAD INTENTIONALLY REMAINED DISENGAGED FROM MILITARY MATTERS IN SOMALIA TRAGICALLY NO ONE TOLD THE RANGERS THAT THE RULES HAD CHANGED AND TO BACK OFF ON CAPTURING GENERAL AIDID SO A DIPLOMATIC SOLUTION COULD BE PUT IN PLACE AND ROBERT OAKLEY PRESIDENT CLINTON'S FORMER SPECIAL ENVOY TO SOMALIA IS THE ONLY ONE CLOSE TO THE ADMINISTRATION WHO HAS PUBLICLY ACKNOWLEDGED THAT THERE WAS A BREAKDOWN IN COMMUNICATIONS BETWEEN THE WHITE HOUSE AND THE MILITARY HE MADE THAT ADMISSION TO DATELINE N. B. C. quote THIS JULY I HOPE PRESIDENT CLINTON AND FUTURE COMMANDERS IN CHIEF LEARN THIS FROM THE FOREIGN RELATIONS DEBACLE IN SOMALIA WHEN AMERICAN TROOPS ARE IN A COMBAT ENVIRONMENT THEY BECOME THE NUMBER ONE PRIORITY DOMESTIC AGENDAS SHOULD BE PUT ON THE BACK BURNER UNTIL THE TROOPS ARE OUT OF THE LINE OF FIRE THE PRESIDENT MUST CONSTANTLY STAY ABREAST OF THE MILITARY SITUATION TO ENSURE THAT MILITARY ACTIONS ARE CONSISTENT WITH CURRENT FOREIGN POLICY HAD PRESIDENT CLINTON TAKEN THESE SIMPLE STEPS THERE WOULD BE AT LEAST EIGHTEEN FEWER YOUNG MEN FOR US TO MOURN AND REMEMBER IN ARLINGTON TODAY MR. JOYCE IS A RETIRED ARMY LIEUTENANT COLONEL LIVING IN CHICAGO WHO SERVED TWO COMBAT TOURS IN VIETNAM AVERAGE MONTHLY SALARIES IN SPAIN IN THE SECOND QUARTER WERE UP FOUR point EIGHT percent FROM THE SAME QUARTER OF NINETEEN NINETY THREE THE NATIONAL STATISTICS INSTITUTE SAID THE GOVERNMENT SAID THE AVERAGE SALARY OF A WORKER IN SPAIN INCLUDING OVERTIME WAS ONE HUNDRED EIGHTY ONE THOUSAND THREE HUNDRED THIRTY EIGHT PESETAS ONE THOUSAND FOUR HUNDRED FIFTEEN DOLLARS A MONTH IN THE SECOND QUARTER WILLIAM M. HJERPE FORTY TWO YEARS OLD FORMERLY VICE PRESIDENT AND CONTROLLER WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS CONTROLS CONCERN SUCCEEDING WILLIAM TRUBECK WHO RESIGNED TO PURSUE OUTSIDE INTERESTS TIMKEN COMPANY OPENED A NINETY FIVE THOUSAND SQUARE FOOT PLANT IN RANDOLPH COUNTY N. C. THE PLANT IS EXPECTED TO BE VALUED AT ONE HUNDRED TWENTY MILLION DOLLARS UPON COMPLETION IN NINETEEN NINETY SIX TIMKEN MAKES BEARINGS AND STEEL ALLOYS PRIME MINISTER TOMIICHI MURAYAMA ADDRESSING THE FIRST DAY OF A SPECIAL SESSION OF PARLIAMENT FRIDAY SPOKE TO A HALF EMPTY CHAMBER A GRIM REMINDER OF THE UNCERTAIN STATE OF JAPAN'S POLITICAL AFFAIRS A NEWLY FORMED GROUP OF OPPOSITION POLITICIANS BOYCOTTED THE SESSION BECAUSE THE GOVERNMENT HAD REBUFFED DEMANDS THAT THE LARGELY CEREMONIAL POST OF PARLIAMENTARY VICE CHAIRMAN BE GIVEN TO THE OPPOSITION TO REFLECT THE NEW GROUP'S SIZE THIS CABINET'S REAL METTLE HAS YET TO BE TESTED MR. MURAYAMA SAID TO LUKEWARM APPLAUSE FROM SUPPORTERS IN A PARLIAMENT ROOM PEPPERED WITH EMPTY GREEN VELVET SEATS MR. MURAYAMA'S POLICY SPEECH FOCUSED ON KEY LEGISLATION SCHEDULED TO BE TABLED IN AN UNUSUALLY LONG SIXTY FIVE DAY SPECIAL SESSION OF PARLIAMENT WHICH BEGAN FRIDAY ON THE AGENDA ARE POLITICAL REFORM ADMINISTRATIVE DEREGULATION TAX REFORM AND TRADE BILLS RELATED TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT THE PRIME MINISTER'S KEYNOTE ADDRESS WAS UPSTAGED BY THE SNUB FROM OPPOSITION LEGISLATORS WHO JOINED LAST WEEK TO FORM A ONE HUNDRED EIGHTY SEVEN MEMBER VOTING BLOCK IN A SPECIAL CONFERENCE MOST MEMBERS OF THE NEW BLOCK DECLINED TO ATTEND THE OPENING SESSION THE GROUP CALLING ITSELF KAIKAKU OR REFORM IS SECOND IN SIZE ONLY TO THE LIBERAL DEMOCRATIC PARTY THE LARGEST OF THE THREE MEMBER PARTIES OF THE RULING COALITION KAIKAKU IS THE BRAINCHILD OF OPPOSITION LEADER ICHIRO OZAWA AND BOASTS AS MEMBERS FORMER PRIME MINISTERS MORIHIRO HOSOKAWA TSUTOMU HATA AND TOSHIKI KAIFU OPPOSITION MEMBERS PROMISE MORE CONFLICT IN THE WEEKS AHEAD TURBULENCE WILL SWEEP THROUGH THIS DIET TENURE SAID TAKASHI YONEZAWA THE CHAIRMAN OF THE DEMOCRATIC SOCIALIST PARTY ONE OF THE NINE OPPOSITION PARTIES IN THE NEW BLOCK AIR FRANCE REPORTED THAT ITS GROUP NET LOSS FOR THE FIRST HALF OF THE YEAR NARROWED TO TWO point SIX BILLION FRANCS FOUR HUNDRED NINETY TWO point SIX MILLION DOLLARS FROM THREE point EIGHT BILLION FRANCS A YEAR EARLIER BUT WHILE THE TROUBLED STATE CONTROLLED AIRLINE ATTRIBUTED THE IMPROVEMENT TO ITS RESTRUCTURING PLAN OFFICIALS ACKNOWLEDGED THAT THE COMPANY CONTINUES TO STRUGGLE quote THE SITUATION AT THE COMPANY IS STILL FRAGILE AN AIR FRANCE SPOKESWOMAN SAID AS YOU CAN REALIZE THE RESTRUCTURING PLAN HAS HARDLY BEGUN SO FAR ONLY ONE THOUSAND ONE HUNDRED JOBS HAVE BEEN CUT FROM THE AIRLINE'S JANUARY FIRST STAFF LEVEL OF THIRTY NINE THOUSAND THE THREE YEAR PLAN CALLS FOR FOUR THOUSAND JOB CUTS AND WHILE PASSENGER TRAFFIC AT THE PARENT COMPANY SOARED SEVENTEEN percent IN THE FIRST HALF HELPING BOOST THE AIRLINE'S LOAD FACTORS THE CARRIER NONETHELESS SAID IT SUFFERED A STEEP FALL OFF quote IN REVENUE PER PASSENGER THIS IS THE CLASSIC AIR FRANCE SITUATION SAID ONE PARIS BANKER THEY'VE GOT WONDERFUL LOAD FACTORS BUT SEATS ARE BEING SOLD AT RIDICULOUS PRICES THE LOAD FACTOR IS THE PERCENTAGE OF SEATS OCCUPIED IN FACT MUCH OF AIR FRANCE'S PROGRESS COULD BE ATTRIBUTED TO THE IMPROVING FRENCH ECONOMY AND NOT TO ANY MAKEOVER AT THE COMPANY ITSELF ANALYSTS SAY THAT EVEN IF AIR FRANCE MANAGERS SAT BACK AND DID NOTHING THE ANNUAL NET LOSS COULD NARROW CONSIDERABLY BUT THEY WARN THAT THE AIRLINE'S PROBLEMS WOULD PERSIST AND ITS COMPETITIVENESS DIMINISH AIR FRANCE'S CONSOLIDATED NET LOSS WOULD HAVE BEEN EVEN GREATER EXCEPT FOR AN UNSPECIFIED PROFIT AT THE COMPANY'S SERVAIR CATERING UNIT AND THE SPECIAL GAIN OF ONE HUNDRED TWO MILLION FRANCS FROM THE SALE OF ITS DUTY FREE STORES AIR FRANCE REPORTED A GROUP OPERATING LOSS OF TWO point SEVEN BILLION FRANCS FOR THE PERIOD COMPARED WITH THREE point FOUR FOUR BILLION IN THE FIRST HALF OF NINETEEN NINETY THREE AND AT AIR FRANCE ITSELF THE NET LOSS FOR THE FIRST SIX MONTHS TOTALED TWO point SEVEN BILLION FRANCS AN IMPROVEMENT FROM A NET LOSS OF THREE point SIX BILLION FRANCS A YEAR EARLIER MORE THAN HALF OF THE DEBT LADEN AIRLINE'S NET LOSS WAS ATTRIBUTED TO NET FINANCIAL COSTS OF ONE point FIVE BILLION FRANCS AIR FRANCE DIDN'T PROVIDE YEAR EARLIER FIGURES BUT THE AIRLINE'S DEBT LEVELS WILL DECLINE AS IT STARTS RECEIVING CASH FROM THE GOVERNMENT AS PART OF A RESCUE PACKAGE THE EUROPEAN UNION COMMISSION APPROVED IN JULY A TWENTY BILLION FRANC SUBSIDY FOR THE AIRLINE AND AIR FRANCE OFFICIALS SAY MOST OF IT WILL BE USED TO PAY OFF DEBTS THE FIRST ONE point FIVE BILLION FRANC PAYMENT WAS RECEIVED IN JULY AIR FRANCE WILL ALSO BENEFIT FROM THE SALE OF ITS MAJORITY STAKE IN THE MERIDIEN HOTEL CHAIN TO UNITED KINGDOM HOTEL GROUP FORTE P. L. C. THAT TRANSACTION AGREED TO IN SEPTEMBER VALUED THE MERIDIEN CHAIN AT ONE point NINE BILLION FRANCS THE ANTICLIMACTIC CONCLUSION TO THE U. S. JAPAN TRADE TALKS IS LIKELY TO GIVE THE DOLLAR A SLIGHT BOOST AGAINST THE YEN BUT TRADERS AND ANALYSTS DOUBT THAT THE AGREEMENT WILL LAUNCH A SUSTAINED RALLY AND MARKET ATTENTION WILL SOON SHIFT AWAY FROM TRADE TO THE U. S. ECONOMY AND THE COMING GERMAN ELECTIONS THEY SAID ON SATURDAY THE U. S. SAID IT WOULD LAUNCH A ONE YEAR INVESTIGATION INTO SALES OF AUTO PARTS TO JAPANESE CONSUMERS AN ACTION THAT COULD LEAD TO TRADE SANCTIONS TOUGHER ACTION ON JAPANESE AUTOS AND AUTO PARTS SAID U. S. TRADE REPRESENTATIVE MICKEY KANTOR WOULD quote HAVE BEEN THE WRONG SIGNAL AT THE WRONG TIME AT THE SAME TIME THE BILATERAL TALKS DID PRODUCE AGREEMENT IN THE AREAS OF GOVERNMENT PROCUREMENT INSURANCE AND FLAT GLASS ANALYSTS ALSO SAID THE PACIFIC TONE OF MR. KANTOR'S REMARKS IN WHICH HE SAID NEGOTIATIONS WOULD CONTINUE HELPED TAKE THE STING OUT OF THE SUPER THREE HUNDRED ONE ACTION THIS IS A STABLE RESULT FOR THE MARKET SAID JOHN ROTHFIELD CURRENCY ANALYST AT NATIONSBANC C. R. T. IN CHICAGO ROBERT STEIN A CHICAGO BASED FOREIGN EXCHANGE CONSULTANT SAID NORTH AMERICAN DEALERS WHO BOUGHT DOLLARS LATE LAST WEEK IN THE EXPECTATION OF A MORE DRAMATIC RESULT FROM THE TRADE TALKS MAY SELL THEM BACK THIS WEEK I DON'T THINK THE AGREEMENT IS EARTH SHATTERING quote HE SAID SUCH SALES OF DOLLARS ARE LIKELY TO CAP THE U. S. CURRENCY'S RISE IN WHAT HE PREDICTED WILL BE SEVERAL DAYS OF VOLATILE TRADING AT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS QUOTED AT NINETY EIGHT point TWO FIVE YEN DOWN FROM NINETY EIGHT point SIX THREE YEN AT THE OPENING AND DOWN FROM NINETY NINE point ONE FIVE YEN IN NEW YORK LATE FRIDAY THE DOLLAR STOOD AT ONE point FIVE FIVE ONE FIVE MARKS IN NEW YORK LATE FRIDAY UP FROM ONE point FIVE FOUR EIGHT FIVE MARKS THE DAY BEFORE WITH THE U. S. JAPAN NEGOTIATIONS HAVING ONLY JUST CONCLUDED FOREIGN EXCHANGE MARKET PARTICIPANTS ALREADY ARE POISED TO TRADE ON NEW TOPICS NOW THAT WE'VE HAD THIS RESULT MOST ANALYSTS AND BANKS ON MONDAY WILL REACT TO THIS AS WHAT WE HAD EXPECTED AND START TO THINK ABOUT OTHER THINGS NATIONSBANC'S MR. ROTHFIELD SAID IN PARTICULAR ANALYSTS SAID PLAYERS WILL SEARCH FRIDAY'S U. S. EMPLOYMENT REPORT FOR CLUES ABOUT THE PACE OF U. S. INFLATION AND PROSPECTS FOR FURTHER INTEREST RATE INCREASES BY THE FEDERAL RESERVE BOARD ANY SIGN THAT MIGHT SUGGEST STRENGTH IN THE U. S. ECONOMY WILL LEAD TO HIGHER INFLATION EXPECTATIONS AND WILL KEEP THE DOLLAR VULNERABLE SAID KATHLEEN STEPHANSEN SENIOR ECONOMIST AT DONALDSON LUFKIN and JENRETTE SECURITIES CORPORATION EARLY ESTIMATES BY TECHNICAL DATA FORECAST THAT NON FARM PAYROLLS ROSE BY TWO HUNDRED FIFTY THOUSAND TO TWO HUNDRED SEVENTY FIVE THOUSAND LAST MONTH CURRENCY MARKET PARTICIPANTS ARE ALSO FOCUSING MORE INTENTLY ON GERMANY'S FEDERAL ELECTIONS SCHEDULED FOR OCTOBER SIXTEENTH MOST BELIEVE THAT GERMAN CHANCELLOR HELMUT KOHL WILL PROBABLY EMERGE VICTORIOUS BUT THE MERE CHANCE OF HIS DEFEAT AT THE HANDS OF A PARTY WITH AN EASIER FISCAL POLICY WILL RATTLE PLAYERS' NERVES THIS WEEK ANALYSTS SAID KEEPING PRESSURE ON THE MARK THE SCENARIO THAT MOST WORRIES INVESTORS THE FREE DEMOCRATIC PARTY WHICH HAS RULED WITH KOHL'S CHRISTIAN DEMOCRATIC UNION FAILS TO OBTAIN FIVE percent OF THE GERMAN VOTE WITHOUT THE F. D. P.'S PARTICIPATION KOHL IS FORCED INTO A SO CALLED GRAND COALITION GOVERNMENT WITH THE C. D. U.'S BAVARIAN BASED SISTER PARTY THE CHRISTIAN SOCIAL UNION AND THE OPPOSITION SOCIAL DEMOCRATIC PARTY THE S. D. P. HASN'T OFFICIALLY ANNOUNCED ITS ECONOMIC POLICY BUT SOCIALISTS HISTORICALLY RUN BIGGER FISCAL DEFICITS ENCOURAGE MORE SOCIAL SPENDING AND BELIEVE GOVERNMENT SHOULD HAVE A LARGER ROLE IN SOCIETY NOTED CARL WEINBERG CHIEF ECONOMIST AT HIGH FREQUENCY ECONOMICS A NEW YORK BASED CONSULTING FIRM quote THEY'RE TAX AND SPEND TYPES HE EXPLAINS AND THE S. D. P. HAS CRITICIZED THE CURRENT GOVERNMENT'S FISCAL RESTRAINT SAID D. L. J.'S MS. STEPHANSEN THE MARKET WILL VIEW A GRAND COALITION AS A SIGN THAT MAYBE FISCAL POLICY WILL NOT BE AS RESTRICTIVE AS THEY WANT IT TO BE BECAUSE THE SOCIAL DEMOCRATS WILL BE IN THE GOVERNMENT SHE SAYS SCIENTISTS FOUND SURGERY SO EFFECTIVE IN PREVENTING STROKES AMONG PATIENTS WITH PARTIALLY BLOCKED NECK ARTERIES THAT A NATIONWIDE STUDY WAS CUT SHORT AND THE RESULTS ANNOUNCED EARLIER THAN PLANNED HEALTH OFFICIALS SAID FRIDAY THAT THE TWENTY MILLION DOLLAR STUDY FOUND THAT SURGERY CAN CUT THE RISK OF STROKE BY FIFTY FIVE percent FOR PATIENTS WHO HAVE A SEVERE NARROWING OF A CAROTID ARTERY BUT HAVE NO OTHER SYMPTOMS WHEN COMPARED WITH SUCH PATIENTS WHO ARE TREATED ONLY WITH ASPIRIN THE RESULTS ARE DRAMATIC quote SAID ZACH W. HALL DIRECTOR OF THE NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS AND STROKE A NATIONAL INSTITUTES OF HEALTH AGENCY THAT PAID FOR THE STUDY THE STUDY HAS THE POTENTIAL OF IMPROVING THE HEALTH AND QUALITY OF LIFE FOR THOUSANDS OF AMERICANS ABOUT ONE HUNDRED FIFTY THOUSAND AMERICANS DIE ANNUALLY BY STROKE ABOUT SEVENTY FIVE percent OF THESE STROKES ARE ATTRIBUTED TO NARROWED CAROTID ARTERIES ABOUT TWO MILLION AMERICANS HAVE SURVIVED STROKES BUT TWO THIRDS HAVE MAJOR DISABILITIES INCLUDING PARALYSIS AND LOSS OF SPEECH AND MEMORY BECAUSE OF THE APPARENT PROVEN BENEFIT OF SURGERY MR. HALL SAID A COMMITTEE MONITORING THE STUDY ADVISED THAT IT BE STOPPED PREMATURELY AND PHYSICIANS BE ADVISED IMMEDIATELY OF ITS RESULTS THE STUDY WHICH BEGAN IN NINETEEN EIGHTY SEVEN INVOLVED ONE THOUSAND SIX HUNDRED SIXTY TWO PATIENTS WHO WERE ENROLLED AT THIRTY FIVE CENTERS AFTER DOCTORS CONFIRMED THAT EACH HAD A CAROTID ARTERY THAT WAS AT LEAST SIXTY percent BLOCKED ABOUT HALF THE PATIENTS RECEIVED AN OPERATION CALLED ENDARTERECTOMY IN WHICH FATTY DEPOSITS THAT NARROW THE ARTERIES ARE REMOVED THESE PATIENTS ALSO RECEIVED ASPIRIN A DRUG THAT LOWERS THE RISK OF CLOT FORMATION OTHER PATIENTS IN THE STUDY RECEIVED ONLY THE ASPIRIN THERAPY BOTH GROUPS HOWEVER RECEIVED COUNSELING AND ASSISTANCE IN REDUCING OR CONTROLLING OTHER HEALTH RISK FACTORS INCLUDING SMOKING HIGH BLOOD PRESSURE AND EXCESS WEIGHT THE CAROTID ARTERIES ARE THE MAJOR VESSELS SUPPLYING BLOOD TO THE BRAIN A CARDIOVASCULAR DISEASE CALLED ATHEROSCLEROSIS CAN CAUSE A BUILDUP WITHIN THESE ARTERIES OF A FATTY PLAQUE THAT CAN PARTIALLY BLOCK THE FLOW OF BLOOD WHEN BLOOD CLOTS LODGE IN THESE NARROWED ARTERIES BLOOD FLOW CAN BE FURTHER RESTRICTED OR CUT OFF ALTOGETHER STARVING THE BRAIN FOR OXYGEN AND CAUSING A STROKE AT A NEWS CONFERENCE JAMES F. TOOLE A MEDICAL PROFESSOR AT WAKE FOREST UNIVERSITY IN WINSTON SALEM N. C. AND DIRECTOR OF THE STUDY SAID RESULTS COULD HAVE BEEN INFLUENCED BY THE FACT THAT SURGEONS USED IN THE STUDY WERE AMONG THE BEST AT PERFORMING ENDARTERECTOMY PROCEDURES S. F. BROADCASTING L. L. C. IN A FILING WITH THE FEDERAL COMMUNICATIONS COMMISSION STRUCK BACK AT N. B. C.'S CRITICISM OF S. F.'S RECENT AGREEMENT TO PURCHASE A MILWAUKEE TELEVISION STATION N. B. C. A UNIT OF GENERAL ELECTRIC COMPANY IN AN F. C. C. FILING LAST WEEK QUESTIONED WHETHER THE S. F. PURCHASE WAS STRUCTURED TO ALLOW NEWS CORPORATION'S FOX TELEVISION STATIONS TO SIDESTEP LIMITS ON THE NUMBER OF STATIONS ONE COMPANY MAY OWN AS WELL AS FOREIGNOWNERSHIP LAWS S. F. WAS FORMED EARLIER THIS YEAR AS A JOINT VENTURE BETWEEN SAVOY PICTURES ENTERTAINMENT INCORPORATED AND FOX WITH BOTH COMPANIES CONTRIBUTING FUNDS TO BUY STATIONS THAT WERE THEN EXPECTED TO BECOME FOX NETWORK AFFILIATES S. F. HAS AGREEMENTS TO PURCHASE FOUR STATIONS VOTING CONTROL AND OWNERSHIP OF THE STATIONS HOWEVER REMAINS WITH A CORPORATION CONTROLLED BY SAVOY PRINCIPALS VICTOR KAUFMAN AND LEWIS KORMAN WHO OWN ONE percent OF THE STATIONS N. B. C. QUESTIONED WHETHER F. C. C. RULES PERMIT A COMPANY PARTICULARLY A TELEVISION NETWORK quote TO PROVIDE THE CORE FINANCING FOR THE PURCHASE OF A T. V. STATION AND HAVE THE POTENTIAL FOR CRITICALLY IMPORTANT MANAGEMENT INFLUENCE WITHOUT THE STATION'S COUNTING AGAINST THE F. C. C.'S OWNERSHIP LIMITS S. F. SAID GENERAL ELECTRIC OWNED PEGASUS BROADCASTING OF SAN JUAN INCORPORATED OWNER OF WAPA T. V. THERE IN AUGUST TOLD THE F. C. C. IT SUPPORTED THE SAME KIND OF FINANCIAL STRUCTURE THAT N. B. C. OPPOSES N. B. C. EXECUTIVES SAID THE PEGASUS DEAL WAS WITHIN F. C. C. LIMITS UNLIKE THE S. F. DEAL AND THAT ITS FORTY NINE percent STAKE IN THE CLEVELAND STATION DOESN'T ALLOW IT TO DICTATE THE STATION'S AFFILIATION IN CONTRAST TO ITS UNDERSTANDING OF THE S. F. DEAL THE NASDAQ STOCK MARKET BEDEVILED BY A SERIES OF COMPUTER GLITCHES IN THE SUMMER HIT ANOTHER TECHNOLOGICAL SNAG RESULTING IN A BRIEF TRADING INTERRUPTION THE NETWORK'S MAINFRAME COMPUTER IN TRUMBULL CONNECTICUT WAS SHUT DOWN FOR FIVE MINUTES SHORTLY BEFORE ONE P. M. AFTER ONE OF ITS THREE CENTRAL PROCESSING UNITS MALFUNCTIONED THE FAILURE WAS THE SECOND HARDWARE PROBLEM TO BEFALL THE TRUMBULL SITE IN ABOUT TWO AND ONE HALF MONTHS AND THE FOURTH MAJOR TECHNOLOGICAL PROBLEM FOR NASDAQ SINCE JULY THE SNAG INTERRUPTED THE UPDATING OF PRICE QUOTES ON TRADERS' SCREENS FROM TWELVE FORTY NINE TO TWELVE FIFTY FOUR P. M. AND SHUT DOWN NASDAQ'S SMALL ORDER EXECUTION SYSTEM FOR AROUND TWENTY FIVE MINUTES NASDAQ OFFICIALS SAID NASDAQ'S SELECTNET SERVICE FOR LARGE BLOCK TRADES WASN'T AFFECTED WE TOOK THE MALFUNCTIONING CPU OUT AND REPLACED IT WITH A BACKUP UNIT TO SHOULDER THE WORKLOAD SAID JIM SPELLMAN A NASDAQ SPOKESMAN THIS LATEST NASDAQ MALFUNCTION WASN'T RELATED TO THE INSTALLATION OF NEW COMPUTER SOFTWARE WHICH HAD TRIGGERED AN EMBARRASSING INTERRUPTION OF THE SYSTEM EARLIER THIS YEAR THIS WAS A HARDWARE FAILURE ONE OF THE THINGS WE'RE GOING TO DO IS GET UNISYS BACK IN TO TAKE ANOTHER LOOK quote AT THE UNISYS' MAINFRAME COMPUTER THAT IS THE HEART OF THE SYSTEM SAID RICHARD JUSTICE NASDAQ EXECUTIVE VICE PRESIDENT AND CHIEF TECHNOLOGY OFFICER UNISYS WAS IN JUST A COUPLE OF WEEKS AGO CHECKING THE SYSTEM OUT AND FOUND NOTHING A MALFUNCTIONING OF AN ACCESSORY ITEM ON THE MAINFRAME FORCED A TEMPORARY SHUTDOWN OF NASDAQ'S SCREEN BASED TRADING SYSTEM ON JULY FIFTEENTH AND AN ERRANT SQUIRREL CHEWING INTO POWER LINES IN TRUMBULL CAUSED THE SYSTEM TO FAIL IN AUGUST FEDERAL EXPRESS CORPORATION HAS WITHDRAWN FROM THE INTRA EUROPEAN AND DOMESTIC EUROPEAN DELIVERY MARKETS REDUCING THE NUMBER OF ITS STATIONS IN EUROPE BY EIGHTY FIVE percent IT STILL HANDLES INTERCONTINENTAL SHIPMENTS TO AND FROM EUROPE AN ARTICLE IN THE WORLD BUSINESS REPORT FRIDAY SAID FEDERAL EXPRESS HAS LARGELY RETREATED FROM EUROPE TAIWAN PRESIDENT LEE TENG HUI'S INVITATION TO ATTEND THE ASIAN GAMES IN HIROSHIMA JAPAN WAS WITHDRAWN BY SHEIKH AHMAD AL FAHAD AL SABAH PRESIDENT OF THE OLYMPIC COUNCIL OF ASIA WHO HAD ISSUED THE INVITATION ORIGINALLY AN ARTICLE LAST TUESDAY INCORRECTLY STATED THAT THE INVITATION WAS REVOKED BY THE ORGANIZING COMMITTEE FOR THE HIROSHIMA ASIAN GAMES PIERRE LEMIEUX'S SEPTEMBER SIXTEENTH AMERICAS COLUMN quote QUEBEC ELECTION SIDESTEPS ISSUE OF INDIVIDUAL LIBERTY STRIKES AT THE HEART OF QUEBEC'S LACK OF A POLITICAL SPECTRUM OR DEMOCRACY OF IDEAS BUT IT PUTS THE CYNIC'S DAMPER ON FOCUSING PRESSURE ON QUEBEC'S LEADERSHIP TO CHANGE COURSE IN TRUE CANADIAN FASHION MR. LEMIEUX MUDDLES THE ELECTION'S SIGNIFICANCE WHILE AN ALTERNATIVE TO STATIST NATIONALISM WAS NOT OFFERED TO QUEBEC VOTERS THERE WAS INDEED A CLEAR POLITICAL QUESTION ASKED TO GIVE ETHNIC NATIONALIST FORCES A MANDATE TO ADVANCE TO THE FINAL STAGE OF SEPARATION FROM CANADA AND IN THE PROCESS FURTHER CONSOLIDATE STATIST ECONOMIC POLICIES THE VOTE WAS NOT EVENLY SPLIT AS MR. LEMIEUX STARTS OUT SAYING ADD UP HIS BREAKDOWN AND THE SEPARATISTS GARNERED FIFTY ONE percent OF THE VOTE VERSUS FORTY FOUR percent FOR THE INCUMBENT LIBERALS ADMITTEDLY THE FIFTY ONE percent INCLUDES A POPULIST PROTEST AGAINST THE LIBERALS' ELITIST BRAND OF STATISM GRANTED THE VICTORIOUS PARTI QUEBECOIS NEEDS TO DEPLOY THE MACHINERY OF STATE TO WIN NEXT YEAR'S PLANNED INDEPENDENCE REFERENDUM WHILE MR. LEMIEUX CORRECTLY CITES POLLS SHOWING FORTY percent TO FORTY FIVE percent OF QUEBECKERS IN FAVOR OF SEPARATION THIS IS IMMEDIATE SEPARATION ANOTHER BIG PERCENTAGE SAID THEY WANT TO REMAIN IN CANADA ONLY IF CANADA'S FEDERAL GOVERNMENT THIS YEAR GRANTS MORE POWER PREROGATIVES TO QUEBEC'S GOVERNMENT THOSE SAME POLLS SHOWED SOME SIXTY percent OF QUEBECKERS BELIEVE SEPARATION FROM CANADA TO BE INEVITABLE SO IT'S ALL IN THE TIMING UNLESS FINANCIAL MARKET PRESSURE ON QUEBEC IS SUSTAINED BREAKUP WILL COME EVER SOONER MAYBE NEXT YEAR BY MR. LEMIEUX'S OWN RECKONING THAT'S WHAT I WARNED OF IN MY AUGUST FIFTH AMERICAS COLUMN THE BOND MARKET HOLDS QUEBEC'S FATE THERE'S SOME LOCAL COLOR IN MR. LEMIEUX'S OTHERWISE STRAIGHT FROM THE HEART APPEAL HE IS WRONG TO SUGGEST A SYMMETRY BETWEEN QUEBEC AND ENGLISH quote CANADA AS EXAMPLES OF TOTALITARIAN DEMOCRACY WHEN IT COMES TO PUBLIC POLICY DEBATE A BALANCED PRESS ETHNIC PLURALISM AND LINGUISTIC RIGHTS QUEBEC IS WORSE THE REST OF CANADA BETTER WHILE CANADA'S PARLIAMENT HAS THE OPPOSITION REFORM PARTY TO PROMOTE LIBERTARIAN IDEAS QUEBEC'S NATIONAL ASSEMBLY IS STONE SILENT ANGLO CANADA DOMINATED BY WHAT MR. LEMIEUX CALLS A TERRITORIAL TRIBE EXISTS NO MORE THAN ANGLO AMERICA DOES IF STATISM IS DESTROYING CANADA IT SEEMS APPROPRIATE TO STRIKE AT WHERE IT'S HAPPENING IN QUEBEC BUT I WOULD CONCEDE TO MR. LEMIEUX THAT THAT'S NO EXCUSE TO RELENT IN REMOVING THE VESTIGES OF STATISM ELSEWHERE IN CANADA THERMO CARDIOSYSTEMS INCORPORATED AFTER TWENTY EIGHT YEARS OF WORK RECEIVED THE FOOD AND DRUG ADMINISTRATION'S FIRST APPROVAL TO SELL A HEART ASSIST DEVICE TO KEEP CARDIAC PATIENTS ALIVE WHILE AWAITING TRANSPLANTS THE DEVICE IS EXPECTED TO BE TEMPORARILY IMPLANTED IN ONLY A FEW HUNDRED PATIENTS A YEAR WHO ARE AWAITING HEARTS AS A quote BRIDGE TO TRANSPLANT BUT THE APPROVAL REPRESENTS A MAJOR STEP TOWARD SURGEONS' DREAMS OF A PERMANENT MECHANICAL CRUTCH FOR FAILING HEARTS THERMO'S DEVICE WILL MAINLY