WALL STREET'S BIG WINNER IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED SHAPES UP AS SMITH BARNEY SHEARSON INCORPORATED WHICH STANDS TO REAP FEES OF BETWEEN TWENTY FIVE MILLION DOLLARS AND THIRTY MILLION DOLLARS SMITH BARNEY'S TWELVE POINT FIVE MILLION DOLLAR FEE FOR ADVISING VIACOM INCORPORATED ON THE ORIGINAL EIGHT POINT TWO BILLION DOLLARS FRIENDLY PARAMOUNT VIACOM MERGER LAST SEPTEMBER WAS THREATENED BY THE HOSTILE TAKEOVER BID BY Q. V. C. NETWORK INCORPORATED BUT THE TRAVELERS INCORPORATED UNIT AND ITS NEW CHIEF EXECUTIVE OFFICER FORMER MORGAN STANLEY AND COMPANY MERGERS ACE ROBERT GREENHILL BOUNCED BACK BY NOT ONLY WINNING THE PARAMOUNT BATTLE BUT ALSO BY ADVISING VIACOM ON AN ADDITIONAL EIGHT POINT FOUR BILLION DOLLAR FRIENDLY TAKEOVER OF BLOCKBUSTER ENTERTAINMENT CORPORATION NEGOTIATED IN JANUARY ALTHOUGH FEES FOR THE BLOCKBUSTER DEAL HAVEN'T BEEN DISCLOSED SMITH BARNEY IS EXPECTED TO RECEIVE ROUGHLY THE SAME SIZE FEE FOR THAT DEAL AS THE PARAMOUNT TRANSACTION PLUS AN ADDITIONAL FEE FOR NEGOTIATING A ONE POINT TWO BILLION DOLLAR INVESTMENT IN VIACOM BY NYNEX CORPORATION BLOCKBUSTER WAS REPRESENTED BY MERRILL LYNCH AND COMPANY AND VIACOM WAS ALSO ADVISED ON THE PARAMOUNT DEAL BY BEAR STEARNS AND COMPANY AND GOLDMAN SACHS AND COMPANY LAZARD FRERES AND COMPANY ALSO STANDS TO RECEIVE TWELVE POINT FIVE MILLION DOLLARS FOR ADVISING PARAMOUNT ALTHOUGH Q. V. C. HAD TO SPEND THIRTY TWO MILLION DOLLARS ON LEGAL FEES AND BANK COMMITMENT FEES ITS INVESTMENT BANKER ALLEN AND COMPANY SAID IT WOULDN'T BILL Q. V. C. FOR ANY FEES IF Q. V. C. DIDN'T ACQUIRE PARAMOUNT THE FIRM OF WASSERSTEIN PERELLA AND COMPANY WHICH ONCE DOMINATED THE MERGER RANKINGS IN THE LATE NINETEEN EIGHTIES MISSED OUT ON COUNTING THE PARAMOUNT DEAL IN ITS NINETEEN NINETY FOUR TOTALS BECAUSE IT WAS ADVISING BELLSOUTH CORPORATION ON ITS INVESTMENT IN Q. V. C. SOUTHWEST AIRLINES WILL ADD FOUR NEW CITIES TO ITS ROUTE MAP NEXT QUARTER ALL IN THE WESTERN HALF OF THE NATION AND PLANS TO BOOST SERVICE ON THE EAST COAST LATER THIS YEAR BY ADDING GATES IN BALTIMORE IN A MEETING WITH WALL STREET ANALYSTS IN NEW YORK YESTERDAY SOUTHWEST CHAIRMAN HERBERT D. KELLEHER SAID THE DALLAS BASED CARRIER WILL START FLYING TO AIRPORTS IN PORTLAND OREGON ORANGE COUNTY CALIFORNIA SEATTLE AND SPOKANE WASHINGTON DURING THE SECOND QUARTER EACH OF THOSE CITIES IS CURRENTLY SERVED BY MORRIS AIR CORPORATION WHICH SOUTHWEST BOUGHT LAST YEAR SINCE THE MORRIS PURCHASE COMPLETED DECEMBER THIRTY FIRST SOUTHWEST AND MORRIS HAVE BEEN TRYING TO COMBINE THEIR ROUTE STRUCTURES IN ADDITION TO TAKING OVER THOSE FOUR WESTERN CITIES FROM MORRIS SOUTHWEST PLANS TO STOP MORRIS SERVICE TO PALM SPRINGS CALIFORNIA AND EUGENE OREGON OTHER MORRIS CITIES COULD BE ELIMINATED MR. KELLEHER SAID THAT THE SUCCESS OF SOUTHWEST'S SERVICE TO THE EAST COAST SINCE LAST SEPTEMBER IS PROMPTING THE CARRIER TO SEEK ADDITIONAL GATES AT BALTIMORE SLASH WASHINGTON AIRPORT WHICH COULD HEAT UP AN ALREADY COMPETITIVE FARE WAR BY YEAR'S END SOUTHWEST WILL HAVE EIGHT GATES UP FROM THE CURRENT TWO WELLS FARGO AND COMPANY SAID IT WILL REDEEM MARCH TWENTY FIRST ALL OF ITS SERIES A PREFERRED STOCK AT FIFTY DOLLARS A SHARE PLUS ACCRUED DIVIDENDS OF SIXTY SIX POINT SEVEN CENTS A SHARE CHRIS LITTMODEN FIFTY YEARS OLD WAS NAMED DIRECTOR OF NORTH AMERICAN OPERATIONS AT THIS APPAREL HOME FURNISHINGS AND FOOD PRODUCTS RETAILER SUCCEEDING PAUL SMITH FIFTY THREE WHO BECOMES A DIRECTOR AT THE COMPANY'S FAR EAST OPERATIONS IN HONG KONG MR. LITTMODEN WAS FORMERLY DIRECTOR OF FINANCIAL CONTROL IN LONDON MAGAZINES NEWS CORPORATION SAID CATHERINE VISCARDI ADVERTISING DIRECTOR OF NEW YORK MAGAZINE WILL BECOME PUBLISHER OF MIRABELLA MAGAZINE EFFECTIVE FEBRUARY TWENTY EIGHTH MS. VISCARDI FORTY WILL SUCCEED REBECCA DARWIN WHO MIRABELLA SAID QUOTE HAS LEFT THE COMPANY QUOTE MS. DARWIN ALSO FORTY JOINED MIRABELLA AS PUBLISHER IN NINETEEN NINETY ONE ANGLO AMERICAN INDUSTRIAL CONGLOMERATE HANSON P. L. C. SAID ITS FISCAL FIRST QUARTER PRETAX PROFIT FELL TWENTY SEVEN PERCENT TO ONE HUNDRED SEVENTY THREE MILLION POUNDS TWO HUNDRED FIFTY SEVEN MILLION DOLLARS FROM TWO HUNDRED THIRTY SIX MILLION POUNDS HANSON SAID THE RESULTS WERE AFFECTED BY SIXTY SEVEN MILLION POUNDS IN COSTS RELATED TO THE STRIKE AT ITS PEABODY COAL MINES IN THE U. S. AS WELL AS INCREASED INTEREST COSTS SALES IN THE PERIOD ENDED DECEMBER THIRTY FIRST GREW TWENTY FIVE PERCENT TO TWO POINT EIGHT NINE BILLION POUNDS FROM TWO POINT THREE OH BILLION POUNDS EXCLUDING THE COST OF THE STRIKE EXCEPTIONAL ITEMS AND INTEREST HANSON WOULD HAVE REPORTED PROFIT OF TWO HUNDRED THIRTY MILLION POUNDS UP FROM ONE HUNDRED EIGHTY SEVEN MILLION POUNDS A YEAR EARLIER THAT INCLUDES A TWENTY FIVE MILLION POUND FIRST TIME CONTRIBUTION FROM QUANTUM CHEMICAL CORPORATION WHICH HANSON ACQUIRED LAST YEAR HANSON SAID THAT INCREASED NET INTEREST COSTS MOSTLY WERE DUE TO THE NARROWING OF STERLING DOLLAR INTEREST SPREADS SHORTER DEPOSIT MATURITIES AND ACQUISITIONS INCLUDING QUANTUM TOTALING TWO POINT NINE BILLION POUNDS THE COMPANY CONTINUED TO REDUCE DEBT WITH PROCEEDS FROM THE COMPLETION OF CERTAIN DISPOSALS AND HAS ANNOUNCED OTHERS INCLUDING THE SEPARATE FLOTATIONS IN THE U. S. AND U. K. OF THE TWO BEAZER HOMES BUSINESSES YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE MIXED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIX MONTH SMALLDENOMINATION QUOTE SAVINGS QUOTE C. D.S INCHED UP TO TWO POINT EIGHT TWO PERCENT FROM TWO POINT SEVEN SEVEN PERCENT ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVE YEAR SAVINGS C. D.S ALSO ROSE A BIT TO FOUR POINT FIVE FOUR PERCENT FROM FOUR POINT FOUR NINE PERCENT THE WILMINGTON DELAWARE INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIX MONTH BROKER SOLD C. D.S REMAINED AT THREE POINT ONE SEVEN PERCENT ON FIVE YEAR BROKER SOLD C. D.S THE AVERAGE YIELD FELL TO FOUR POINT FOUR FOUR PERCENT FROM FOUR POINT SIX FOUR PERCENT THE SURVEY SAID ON LARGE DENOMINATION JUMBO C. D.S WHICH TYPICALLY REQUIRE DEPOSITS OF NINETY FIVE THOUSAND DOLLARS AND MORE THE AVERAGE YIELD ON A SIX MONTH CERTIFICATE CLIMBED TO TWO POINT NINE FOUR PERCENT FROM TWO POINT EIGHT EIGHT PERCENT ON FIVE YEAR JUMBOS THE AVERAGE ROSE TO FOUR POINT EIGHT ONE PERCENT FROM FOUR POINT SEVEN FIVE PERCENT ACCORDING TO BANXQUOTE GENERAL MOTORS CORPORATION SCRAMBLING TO CASH IN ON A RISING MARKET SAID IT WILL ADD ANOTHER ASSEMBLY PLANT'S WORTH OF TRUCK CAPACITY AND ACCORDING TO UNION OFFICIALS DROPPED PLANS TO SLASH ONE THOUSAND TWO HUNDRED JOBS AT A MAJOR PARTS MAKING COMPLEX IN FLINT MICHIGAN THUS AVERTING A PRODUCTION CRIPPLING STRIKE THE SEPARATE ACTIONS HIGHLIGHT G. M. PRESIDENT JOHN F. SMITH JUNIOR'S DETERMINATION THAT G. M. MUST PUMP OUT EVERY VEHICLE IT CAN AS HE PUSHES TO MAKE GOOD ON A VOW TO RETURN THE COMPANY'S NORTH AMERICAN VEHICLE OPERATIONS TO A PROFIT THIS YEAR AFTER MORE THAN FOUR YEARS IN THE RED TO BOOST TRUCK PRODUCTION G. M. SAID LATE YESTERDAY IT WILL ADD A THIRD PRODUCTION SHIFT THIS SPRING AT ITS FLINT MICHIGAN FULL SIZE VAN FACTORY AND ADD A THIRD WORK TURN IN JANUARY NINETEEN NINETY FIVE AT THE PONTIAC MICHIGAN EAST PLANT THAT BUILDS FULL SIZE PICKUPS THOSE TWO EXTRA SHIFTS OF PRODUCTION WILL MEAN JOBS FOR ONE THOUSAND NINE HUNDRED G. M. BLUE COLLAR WORKERS WHO MIGHT OTHERWISE HAVE BEEN IDLED G. M. ALSO WILL EXTEND PRODUCTION OF ITS CURRENT S. TEN BLAZER SPORT UTILITY VEHICLES THROUGH NOVEMBER AT ITS PONTIAC MICHIGAN WEST ASSEMBLY PLANT THAT PLANT WAS SCHEDULED TO CLOSE PERMANENTLY IN SEPTEMBER ALL TOGETHER THE EXTRA SHIFTS AND WORK EXTENSIONS COULD GIVE G. M. AS MANY AS ONE HUNDRED EIGHTY THOUSAND TO TWO HUNDRED THOUSAND EXTRA TRUCKS A YEAR A G. M. SPOKESWOMAN WOULD SAY ONLY THAT THE ADDED PRODUCTION IS QUOTE A SIZABLE NUMBER QUOTE JUST TWELVE DAYS AGO AMID COMPLAINTS FROM HIS MARKETING OPERATIONS THAT THEY WERE RUNNING SHORT OF POPULAR HIGH PROFIT TRUCK MODELS MR. SMITH DECLARED DURING A SPEECH IN CHICAGO THAT WE'VE GOT TO COME UP WITH INNOVATIVE WAYS TO INCREASE TRUCK PRODUCTION TURNING TOWARD THE HEAD OF G. M.'S DOMESTIC TRUCK OPERATIONS CLIFFORD J. VAUGHAN MR. SMITH ADDED DRYLY CLIFF'S WORKING ON THAT ATTABOY CLIFF MEANWHILE G. M. OFFICIALS YESTERDAY BACKED AWAY FROM A SHOWDOWN WITH THE UNITED AUTO WORKERS UNION OVER LABOR COSTS IN ITS PARTS OPERATIONS AFTER THE UNION THREATENED A STRIKE AT AN A. C. ROCHESTER DIVISION FACTORY IN FLINT THAT WOULD HAVE SHUT DOWN NEARLY ALL OF G. M.'S DOMESTIC ASSEMBLY OPERATIONS THE SEVEN PLANTS IN THE FLINT EAST COMPLEX SUPPLY SPARK PLUGS FUEL PUMPS INSTRUMENT CLUSTERS AND A VARIETY OF OTHER PARTS USED IN VARIOUS G. M. VEHICLES G. M. REFUSED TO DISCUSS SPECIFICS OF THE FLINT LABOR AGREEMENT SAYING ONLY THAT IT WAS A WIN WIN FOR BOTH UNION AND COMPANY BUT DALE LEBEAU PRESIDENT OF U. A. W. LOCAL SIX HUNDRED FIFTY ONE SAID G. M. APPROVED A TENTATIVE LOCAL AGREEMENT THAT WILL HOLD EMPLOYMENT IN ITS A. C. ROCHESTER FLINT EAST COMPLEX AT ITS PRESENT LEVEL OF APPROXIMATELY SEVEN THOUSAND WORKERS INSTEAD OF CUTTING THE WORK FORCE BY SOME SEVENTEEN PERCENT OR ONE THOUSAND TWO HUNDRED JOBS G. M. AGREED TO BRING ADDITIONAL WORK BACK INTO FLINT TO MAINTAIN THE CURRENT EMPLOYMENT LEVEL HE SAID THE FLINT SETTLEMENT WILL KEEP G. M.'S FACTORIES RUNNING BUT IT REPRESENTS ANOTHER SETBACK FOR G. M.'S CAMPAIGN TO CUT LABOR COSTS THAT ARE THE HIGHEST IN THE INDUSTRY IN JANUARY G. M. AGREED TO ADD ONE HUNDRED WORKERS AT ITS SHREVEPORT LOUISIANA PLANT TO END A FOUR DAY STRIKE PROMPTED BY G. M.'S ATTEMPT TO RUN THE ASSEMBLY LINE FASTER WITH FEWER WORKERS G. M. UNSUCCESSFULLY SOUGHT A TWO TIER WAGE STRUCTURE FOR PARTS WORKERS IN LAST YEAR'S NATIONAL NEGOTIATIONS LOOKING TO SCALE BACK WAGES AND BENEFITS THAT TOTAL NEARLY FORTY THREE DOLLARS AN HOUR AND ARE MORE THAN DOUBLE WHAT WORKERS AT MOST INDEPENDENT PARTS MAKERS EARN J. T. BATTENBERG THE THIRD WHO HEADS G. M.'S PARTS OPERATIONS SOLD OFF SEVERAL UNCOMPETITIVE PARTS OPERATIONS LAST YEAR BUT NOW HIS DRIVE TO SLASH LABOR COSTS AT THE BUSINESSES HE WANTS TO KEEP SEEMS TO BE RUNNING INTO INCREASING RESISTANCE FROM THE U. A. W. G. M. CAN STILL GET PRODUCTIVITY GAINS SAID ANALYST RONALD GLANTZ OF DEAN WITTER REYNOLDS QUOTE BUT IT WILL HAVE TO KEEP THE SAME NUMBER OF WORKERS AND GIVE THEM MORE WORK TO DO QUOTE THAT PATH MEANS THAT G. M. WILL CONTINUE TO HAVE HIGHER PART COSTS IN MANY AREAS THAN COMPETITORS SUCH AS CHRYSLER CORPORATION OR TOYOTA MOTOR CORPORATION WHICH RELY HEAVILY ON OUTSIDE SUPPLIERS G. M. STOCK CLOSED AT SIXTY ONE POINT SIX TWO FIVE DOLLARS A SHARE DOWN TWELVE POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE UNION HAS SCHEDULED A FRIDAY RATIFICATION VOTE FOR THE FLINT LABOR AGREEMENT IN ADDITION TO FLINT G. M. HAS TWENTY EIGHT OTHER LOCATIONS OUT OF A TOTAL OF ONE HUNDRED SEVENTEEN LOCATIONS WHERE IT HAS YET TO REACH LOCAL LABOR CONTRACTS ORACLE CORPORATION UNVEILED NEW MULTIMEDIA SOFTWARE IN ITS QUEST TO PROVIDE THE TECHNOLOGY TO BRING INTERACTIVE SERVICES SUCH AS MOVIES ON DEMAND AND SHOPPING TO HOMES THE REDWOOD SHORES CALIFORNIA SOFTWARE COMPANY SAID THE PRODUCTS INCLUDE ORACLE MEDIA SERVER A DIGITAL QUOTE MULTIMEDIA LIBRARY QUOTE FOR STORING RETRIEVING AND MANAGING VIDEO AUDIO TEXT AND OTHER DATA ORACLE MEDIA OBJECTS A TOOL FOR SOFTWARE DEVELOPERS TO CREATE MULTIMEDIA INTERACTIVE SERVICES AND C. D. ROM PROGRAMS AND ORACLE MEDIA NET WHICH CONNECTS THE HOME T. V. TO THE MULTIMEDIA LIBRARY VIA PHONE LINES SATELLITE BROADCASTS AND CABLE ORACLE'S NEW TECHNOLOGY BROADCAST YESTERDAY TO NEW YORK WASHINGTON AND TOKYO IN A LIVE VIDEO HOOKUP FROM C. B. S. STUDIOS IN LOS ANGELES HAS GAINED SUPPORT FROM TWENTY COMPANIES INCLUDING CAPITAL CITIES SLASH A. B. C. INCORPORATED AND WASHINGTON POST COMPANY SEPARATELY ORACLE AND MOTOROLA INCORPORATED SCHAUMBURG ILLINOIS SAID THEY HAVE AGREED TO WORK TOGETHER TO PROVIDE WIRELESS TRANSFER OF CORPORATE DATA SERVED THROUGH ORACLE DATABASES AND ORACLE MEDIA SERVER PRODUCTS USING ORACLE'S DATABASE AND NETWORK TECHNOLOGY AND MOTOROLA'S MOBILE NETWORKS INTEGRATION WIRELESS TECHNOLOGY ARE TO BE ANNOUNCED LATER THIS YEAR MARK G. PAPA FORTY SEVEN YEARS OLD FORMERLY A SENIOR VICE PRESIDENT OF THIS OIL AND NATURAL GAS COMPANY WAS NAMED TO THE NEW POSITION OF PRESIDENT NORTH AMERICAN OPERATIONS WHEN EDOUARD BALLADUR TOOK OVER AS FRENCH PRIME MINISTER LAST APRIL A TOP EUROPEAN DIPLOMAT IN PARIS DESCRIBED HIS MANDATE AS THE TRICKY ONE OF QUOTE DOING NOTHING WHILE SEEMING TO DO A LOT QUOTE THE COMMENT WAS A DELIBERATE EXAGGERATION OF COURSE BUT ONE THAT IS STILL ON THE MARK TEN MONTHS LATER MR. BALLADUR HAS EMERGED AS A MASTER OF CRISIS MANAGEMENT A MAN WHOSE ASSURED BUT UNDERSTATED MANNER AND STRATEGY OF AVOIDING CONFLICT AT ANY COST AND IT'S OFTEN HIGH APPEARS TO BE JUST THE TONIC THE FRENCH PUBLIC IS LOOKING FOR MR. BALLADUR HAS OPTED FOR A TYPE OF BAND AID POLITICS FIXING ONLY WHAT IS IN NEED OF IMMEDIATE REPAIR AND OFFERING SOOTHING ASSURANCES THAT HARD TIMES WILL SOON BE OVER SATIRISTS HERE DEPICT HIM AS A NATIONAL HYPNOTIST WHO MAKES PEOPLE FORGET THEIR REAL AILMENTS IN A NINETY MINUTE TELEVISION INTERVIEW MONDAY NIGHT THE PRIME MINISTER INSISTED THAT THERE WOULD BE NO CHANGE IN POLICY DESPITE A CONTINUING INCREASE IN UNEMPLOYMENT AND FORECASTS OF MEAGER ECONOMIC GROWTH OF ONE POINT FOUR PERCENT THIS YEAR I AM NOT GOING TO PUT INTO QUESTION SOMETHING THAT IS BEGINNING TO PRODUCE GOOD RESULTS HE SAID BUT AS MR. BALLADUR AND HIS AIDES ACKNOWLEDGE A HARSH REALITY IS KNOCKING AT THE DOOR THERE ARE MAJOR SHORTCOMINGS IN THE STRUCTURE OF THE FRENCH ECONOMY THAT ARE DAMAGING ITS COMPETITIVE POSITION AT A TIME WHEN GERMANY BRITAIN AND SOME OF FRANCE'S OTHER EUROPEAN NEIGHBORS ARE TRYING TO IMPROVE THEIR OWN COMPETITIVENESS PARIS IS LAGGING BEHIND THE REAL QUESTION IS HOW LONG CAN WE KEEP GOING WITHOUT MAKING FUNDAMENTAL REFORMS SAYS FRANCOIS PERIGOT PRESIDENT OF THE FRENCH NATIONAL EMPLOYERS' ASSOCIATION HE AND OTHER BUSINESS LEADERS WHILE GENERALLY SYMPATHETIC TO THE BALLADUR GOVERNMENT SAY MAJOR ISSUES MUST BE ADDRESSED SOON THEY INCLUDE THE HEAVY BURDEN OF SOCIAL SECURITY AND OTHER OBLIGATORY LEVIES ON COMPANIES THAT RANK AMONG THE HIGHEST IN EUROPE A SYSTEM OF NATIONAL HEALTH INSURANCE WHOSE COSTS HAVE GONE AWRY AND WHICH TAKES LITTLE ACCOUNT OF DEMOGRAPHIC TRENDS AND THE ALMOST COMPLETE ABSENCE OF PRIVATE PENSION FUNDS A HISTORICAL QUIRK THAT EVERYONE AGREES MUST BE CORRECTED THE SHORT TERM OUTLOOK IS ALSO HAZY WHILE MR. BALLADUR IS EXHORTING FRANCE TO PULL ITSELF OUT OF RECESSION BY CONSUMING MORE BANKERS WORRY THAT FRANCE IS CLOSE TO DISINFLATION PRICES ON MANY GOODS ARE ACTUALLY FALLING WHILE REAL INTEREST RATES PEGGED TO LEVELS IN GERMANY ARE CRIPPLINGLY HIGH FOR COMPANIES TO BE SURE MR. BALLADUR HAS ENJOYED SOME IMPORTANT SUCCESSES HE MANAGED TO COAX A RELUCTANT NATION INTO ACCEPTING A NEW WORLD TRADE ACCORD AFTER THREATENING FOR MONTHS TO VETO IT AND TAKING ADVANTAGE OF A SOARING STOCK MARKET HE IS SELLING OFF SEVERAL LARGE STATE OWNED COMPANIES TO THE PUBLIC BUT MOST OF HIS EFFORTS ARE ON A SMALLER SCALE AIMED AT PUTTING OUT LOCAL FIRES HIS ANSWER TO MOST PROBLEMS BE THEY STRIKING AIR FRANCE WORKERS FLOODS IN THE SOUTH OF THE COUNTRY PROTESTING TEACHERS OR ANGRY FARMERS AND FISHERMAN IS TO AVOID CONFRONTATION AND PULL OUT HIS CHECKBOOK WHILE THE NATIONAL BUDGET DEFICIT IS STILL A MANAGEABLE FOUR PERCENT OF GROSS NATIONAL PRODUCT HIS LARGESSE WILL MAKE IT DIFFICULT TO REDUCE IN THE NEAR FUTURE RISING UNEMPLOYMENT CURRENTLY AT TWELVE PERCENT IS THE BIGGEST NATIONAL PREOCCUPATION BUT SO FAR MR. BALLADUR'S PIECEMEAL REMEDIES HAVE FAILED TO CURB THE INCREASE BUSINESS LEADERS COMPLAIN THAT THEY ARE UNDER STRONG POLITICAL PRESSURE NOT TO LAY OFF WORKERS EVEN IF THEY NEED TO CUT COSTS AND A HOST OF SMALL MEASURES THAT WERE ANNOUNCED RECENTLY TO BOOST EMPLOYMENT AND CONSUMPTION HAVE BEEN GREETED WITH SKEPTICISM AMONG THOSE IDEAS HE URGED THE HIRING OF MORE JANITORS AND GAS STATION ATTENDANTS AND PROMOTED A PLAN TO GIVE FIVE THOUSAND FRANCS EIGHT HUNDRED FIFTY TWO DOLLARS TO PEOPLE WHO TRADE IN THEIR TEN YEAR OLD CARS FOR NEW ONES ONE GROUP OF JOBLESS PEOPLE IN TOULOUSE SENT MR. BALLADUR A CHECK FOR FIVE THOUSAND FRANCS TELLING HIM IT WAS TIME TO TRADE IN HIS OLD IDEAS FOR SOME NEW ONES OVERALL HOWEVER FRANCE SEEMS TO APPLAUD HIS MANAGEMENT AND IN DOING SO IS NURTURING MR. BALLADUR'S PRESIDENTIAL AMBITIONS RAYMOND BARRE A FORMER PRIME MINISTER CONTENDS THAT MR. BALLADUR'S STYLE ACCORDS WELL WITH THE NATION'S CURRENT PSYCHOLOGICAL STATE AFTER YEARS OF UPHEAVAL BROUGHT ABOUT BY PREVIOUS SOCIALIST GOVERNMENTS AND AT A TIME WHEN THE FRENCH SEEM NERVOUS ABOUT THEIR FUTURE THE PRIME MINISTER DOESN'T TROUBLE THEIR TRANQUILLITY AND AVOIDS MAKING WAVES MR. BARRE SAYS MR. BALLADUR REMAINS VERY POPULAR EVEN IF HIS APPROVAL RATINGS HAVE DROPPED SLIGHTLY IN RECENT WEEKS IF A PRESIDENTIAL ELECTION WERE TO BE HELD TODAY RATHER THAN AS SCHEDULED IN JUST OVER A YEAR POLLS SHOW MR. BALLADUR WOULD WIN EASILY THAT IS BOTH A BLESSING AND A CURSE BECAUSE MR. BALLADUR'S CAUTION IS BASED IN PART ON THE PRECARIOUSNESS OF HIS SITUATION AND HIS LACK OF ROOM TO MANEUVER ECONOMICALLY HE TOOK OVER A NATION IN RECESSION WITH AN ALREADY OVERSTRETCHED BUDGET POLITICALLY HIS POSITION OF PRIME MINISTER WAS MORE AKIN TO ONE OF CARETAKER MR. BALLADUR WAS SUPPOSED TO PAVE THE WAY FOR THE TRIUMPHAL EMERGENCE OF HIS ALLY AND PARTY LEADER JACQUES CHIRAC THE MAYOR OF PARIS IN TIME FOR NEXT YEAR'S PRESIDENTIAL ELECTIONS INSTEAD MR. CHIRAC IS NOW BREATHING HEAVILY OVER MR. BALLADUR'S SHOULDER FRUSTRATED AND UNNERVED BY THE PRIME MINISTER'S POPULARITY SOME OF THE MOST BITING CRITICISM OF THE GOVERNMENT HAS COME FROM MR. BALLADUR'S PURPORTED FRIENDS TO COUNTER THE CRITICISM MR. BALLADUR IS REFUSING TO DISCUSS THE ISSUE OF THE PRESIDENCY THIS YEAR BUT AS HE REMINDED T. V. VIEWERS RECENTLY WHOEVER BECOMES THE CONSERVATIVE CANDIDATE FOR FRENCH PRESIDENT WILL NECESSARILY DEPEND ON THE RECORD OF THIS GOVERNMENT BRITISH AIRWAYS P. L. C. REPORTED THAT PRETAX PROFIT FOR ITS THIRD QUARTER ENDED DECEMBER THIRTY FIRST MORE THAN TRIPLED FROM A YEAR EARLIER TO SIXTY FIVE MILLION POUNDS NINETY SIX POINT SIX MILLION DOLLARS THE UNITED KINGDOM AIRLINE ATTRIBUTED THE PROFIT RISE TO IMPROVING U. S. AND BRITISH ECONOMIC CONDITIONS RECOVERING PREMIUM TRAFFIC AND THE COMPANY'S COST CUTTING PROGRAM IN THE YEAR EARLIER PERIOD BRITISH AIRWAYS REPORTED PRETAX PROFIT OF TWENTY MILLION POUNDS QUOTE ECONOMIC RECOVERY EVIDENT IN A NUMBER OF IMPORTANT MARKETS IS ENABLING BRITISH AIRWAYS TO CONTINUE TO MAINTAIN TRAFFIC GROWTH CONSISTENT WITH INCREASES IN CAPACITY AND AT ENCOURAGING LEVELS IN PREMIUM CLASSES QUOTE CHAIRMAN SIR COLIN MARSHALL SAID THE STRONG RESULT MET EXPECTATIONS BUT ANALYSTS POINTED OUT THAT THE YEAR EARLIER PRETAX PROFIT WAS HIT BY THE DEVALUATION OF STERLING A SHOCK THAT COST THE COMPANY MORE THAN FORTY MILLION IN PRETAX PROFIT AS A RESULT ANALYSTS SAID THAT THE AIRLINE'S PERFORMANCE IN THE RECENT THIRD QUARTER WAS ESSENTIALLY FLAT AT LEAST ONE ANALYST REVISED HIS FULL YEAR PROFIT FORECAST FOR THE AIRLINE DOWNWARD BUT MOST WERE STILL PREDICTING PRETAX PROFIT OF BETWEEN THREE HUNDRED MILLION AND THREE HUNDRED TWENTY FIVE MILLION FOR THE COMPANY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BRITISH AIRWAYS AMERICAN DEPOSITARY SHARES CLOSED AT SIXTY NINE DOLLARS AND SEVENTY FIVE CENTS EACH DOWN TWELVE POINT FIVE CENTS REVENUE PER PASSENGER OR YIELD EDGED UP ONE POINT THREE PERCENT ALTHOUGH THE MEASURE WAS TWO PERCENT LOWER IN LOCAL CURRENCY TERMS ALSO BRITISH AIRWAYS KEPT COST INCREASES TO JUST ELEVEN PERCENT WHILE SALES ROSE TWELVE PERCENT AS A RESULT OPERATING PROFIT ROSE THIRTY NINE PERCENT FROM A YEAR EARLIER TO NINETY SEVEN MILLION PASSENGER TRAFFIC ROSE ELEVEN PERCENT WITH GROWTH IN BUSINESS AND FIRST CLASS TRAFFIC MATCHING RISES IN ECONOMY CLASS DURING THE QUARTER HOWEVER THE AIRLINE ADDED ELEVEN PERCENT TO ITS CAPACITY CONSEQUENTLY PLANES FLEW SIXTY SEVEN PERCENT FULL IDENTICAL TO THE COMPARABLE PERIOD A YEAR EARLIER I HAVE A ONE HUNDRED THIRTY FIVE DOLLAR HAT A STETSON XXXX BEAVER SILVER BELLY QUOTE RANCHER QUOTE THERE'S A HOLE BURNED IN THE FRONT OF THE CROWN AND IF IT IS ANYBODY'S FAULT IT'S JOHN F. KENNEDY'S OUR THIRTY FIFTH PRESIDENT YOU MIGHT RECALL DIDN'T WEAR A HAT AFTER HIS INAUGURATION IN NINETEEN SIXTY ONE THEREUPON NINETY EIGHT PERCENT OF AMERICAN MEN TOOK THEIR CUE AND DOFFED THEIR HATS GIVING UP ONE OF THE MOST PRACTICAL ITEMS OF MALE ADORNMENT EVER TO COME DOWN THROUGH THE CENTURIES NO PRESIDENT SINCE THEN EXCEPT POSSIBLY LYNDON JOHNSON HAS WORN A HAT A HAT KEEPS THE SUN OUT OF THE EYES AND THE RAIN OFF THE SCALP THE STRAW HAT KEEPS THE HEAD COOL IN THE SUMMER AND THE FELT HAT KEEPS IT WARM IN THE WINTER IT CAN BE TIPPED IN RESPECT OR TOSSED IN THE AIR IN ECSTASY IN EMERGENCIES IT CAN BE USED TO FAN A SPARK INTO A FLAME OR LIFT A DRINK OF WATER OUT OF A STREAM FOR YOU OR YOUR HORSE NONE OF THESE ATTRIBUTES CAN BE CLAIMED BY BASEBALL CAPS MOTORCYCLE HELMETS OR THOSE LITTLE WOOL HEAD COVERINGS THAT CAN BE WADDED UP AND STUFFED IN A COAT POCKET AND THEREFORE DO NOT QUALIFY AS TRUE HATS THE KENNEDY INSPIRED WHOLESALE ABANDONMENT OF THE HAT THREE DECADES AGO HAS WROUGHT HARDSHIPS ON THOSE FEW OF US WHO HAVE PERSISTED IN WEARING A HAT TAKE THE PROBLEM OF GOING TO THE MOVIES BEFORE NINETEEN SIXTY ONE ALMOST EVERY THEATER DOWN TO THE LOCAL MOVIE HOUSE HAD A U. SHAPED WIRE RACK WELDED TO THE UNDERSIDE OF AT LEAST EVERY OTHER SEAT THE HAT WEARER SIMPLY TURNED HIS HAT UPSIDE DOWN AND SLIPPED IT INTO THE RACK SO THAT IT HUNG BY THE BRIM OUT OF MIND AND OUT OF THE WAY TODAY NOT A SINGLE SEAT IN ANY THEATER IN THESE UNITED STATES RETAINS SUCH A RACK OBVIOUSLY A HAT CANNOT BE WORN IN A THEATER WITHOUT RISKING PHYSICAL VIOLENCE FROM THOSE IN THE NEXT ROW BACK SO THE HAT HAS TO BE LAID ON THE ADJACENT SEAT AND THE OWNER MUST BE READY AT ANY MOMENT TO JERK IT OUT OF THE WAY SHOULD A LATECOMER WISH TO OCCUPY THAT SEAT THE HAT CAN BE LAID ON THE FLOOR UNDERNEATH THE SEAT BUT CHANCES ARE IT WILL BE STAINED BY PUDDLES OF SPILLED SODA AND SPRINKLINGS OF POPCORN OTHERWISE THE HAT OWNER MUST SIT THROUGH THE WHOLE EVENING HOLDING HIS LEGS CLOSE ENOUGH TOGETHER TO KEEP THE HAT FROM SLIPPING TO THE FLOOR EVEN THE LEGITIMATE THEATERS OF BROADWAY WHICH ONCE ACCOMMODATED ALL KINDS OF HATS INCLUDING SILK ONES HAVE REMOVED THE WIRE RACKS FROM THE SEATS CHECK THE HAT HA THEATERS RESTAURANTS AND NIGHTCLUBS USED TO HAVE HATCHECK GIRLS WHO KNEW EXACTLY HOW TO HANDLE A HAT DOWN TO BRUSHING IT OFF BEFORE RETURNING IT TO THE CUSTOMER NO SUCH EMPLOYEE EXISTS TODAY SOME THEATERS AND RESTAURANTS HAVE A RELIC CALLED A COAT CHECK PERSON BUT HAND ONE OF THESE PERSONS A HAT AND YOU'LL GET A LOOK OF PUZZLEMENT IN RETURN IT CAN'T BE PUT ON A COAT HANGER AFTER A MOMENT THE CHECKER'S WANDERING GAZE NOTICES A SHELF ABOVE THE COAT RACK AND ENLIGHTENMENT DAWNS SOME OLD TELEPHONE DIRECTORIES ARE PUSHED ASIDE AND THE HAT IS LAID ON THE SHELF BRIM DOWN NOW IN THE OLD DAYS IF THERE WERE NO HOOKS ON WHICH TO HANG HATS AN EXPERIENCED HATCHECK GIRL KNEW NEVER TO LAY A HAT ON ITS BRIM SINCE THIS WOULD RISK GETTING THE HIGHLY VISIBLE UNDERSIDE OF THE BRIM DIRTY SHE WOULD LAY IT UPSIDE DOWN SO THAT SHOULD THE SHELF BE DUSTY THERE WOULD BE ONLY A THIN BARELY NOTICEABLE LINE OF DUST AROUND THE TOP OF THE CROWN WHICH COULD BE QUICKLY BRUSHED OFF TO HAND A HAT TO A RESTAURANT COAT CHECKER TODAY RISKS INCURRING A TWENTY FIVE DOLLAR CLEANING BILL PROVIDED ONE CAN FIND A DRY CLEANER WHO CAN STILL CLEAN AND BLOCK A HAT THERE ARE ONLY THREE LEFT IN ALL OF MANHATTAN ANYONE WALKING INTO A CAFE OR A HONKYTONK IN THE SOUTHWEST THESE DAYS WILL SEE AN ACRE OF HATS BOBBING OVER A BOWL OF CHILI OR CIRCLING AROUND IN A TEXAS TWO STEP THIS ISN'T A FLOUTING OF THE ETIQUETTE OF THE OLD WEST JOHN WAYNE WOULD NEVER WEAR HIS HAT AT THE TABLE OR WHILE DANCING WITH THE SCHOOL MARM IT'S JUST THAT THESE ERSTWHILE COWPOKES HAVE NO PLACE TO HANG THEIR HATS EXCEPT ON THEIR HEADS EVEN IN TEXAS AND THEREIN LIES THE EXPLANATION FOR THE HOLE BURNED IN MY STETSON XXXX SILVER BELLY THIS HAT IF YOU'RE WONDERING IS A KIND OF MODERN HIGHER CROWN VERSION OF THE HAT GARY COOPER WORE IN HIGH NOON EXCEPT IT'S A SILVER BELLY GRAY INSTEAD OF THE BLACK THAT COOPER WORE EVEN THOUGH HE WAS THE GOOD GUY EACH WEDNESDAY MY FRIEND BEN PATRUSKY AND I HAVE LUNCH IN A LOWER MANHATTAN SALOON IT HAS THE COMFORTABLE FEEL OF ONE OF THOSE OLD NEW YORK BARS LEFT OVER FROM THE LAST CENTURY AND THE FOOD IS EXCELLENT AND INEXPENSIVE BUT UNLIKE THE SALOONS OF THE LAST CENTURY THERE IS NO PLACE TO PUT A HAT THERE IS NO COAT CHECK PERSON MUCH LESS A HATCHECK GIRL AND THE HOOKS ON THE WALL ON WHICH CUSTOMERS HANG THEIR COATS ARE TOO SHORT TO HOLD A TRUE HAT THERE IS HOWEVER A LITTLE NOTICED CLOSET WHERE THE WAITRESSES HANG THEIR COATS IT REMAINS SHUT UNTIL EARLY EVENING WHEN THE SHIFT CHANGES THE HOOKS THEREIN ALSO ARE TOO SHORT TO TAKE A HAT BUT THERE IS A RARELY USED BALD LIGHT BULB THAT STICKS OUT PERPENDICULAR TO THE WALL THE BULB ACCOMMODATES A STETSON XXXX BEAVER SILVER BELLY RANCHER PERFECTLY AND HAD DONE SO EVERY WEDNESDAY FOR MORE THAN THREE YEARS UNTIL THE OTHER DAY DURING THE LUNCH HOUR SOMEONE WHO OBVIOUSLY WAS BORN AFTER NINETEEN SIXTY ONE AND THOUGHT MY HAT WAS SOME KIND OF NEW LAMPSHADE TURNED THE BULB ON AND LEFT IT ON I'M THINKING ABOUT SENDING THE BILL FOR A NEW HAT TO TEDDY KENNEDY MR. BISHOP COVERS SCIENCE TECHNOLOGY AND MEDICINE FOR THE JOURNAL A NEW STUDY SUPPORTS THE NOTION THAT A QUOTE WAIT AND SEE QUOTE STRATEGY IS AS VALID AS SURGERY OR RADIATION FOR TREATMENT OF EARLY STAGE PROSTATE CANCER THE REPORT IS THE LATEST EFFORT TO ADDRESS A GROWING DILEMMA IN THE MANAGEMENT OF THE DISEASE WHICH IS EXPECTED TO KILL THIRTY EIGHT THOUSAND U. S. MEN THIS YEAR A NEW DIAGNOSTIC TEST AND AGGRESSIVE SCREENING CAMPAIGNS ARE HELPING TO INCREASE EARLY DETECTION AND TREATMENT OF PROSTATE CANCER BUT THERE IS LITTLE STATISTICAL EVIDENCE THAT SUCH EFFORTS PROLONG SURVIVAL SINCE AGGRESSIVE TREATMENTS ESPECIALLY SURGICAL REMOVAL OF THE PROSTATE ARE COSTLY AND CARRY SIGNIFICANT RISKS AND SINCE DOCTORS CAN'T PREDICT RELIABLY WHICH PATIENTS ARE LIKELY TO BENEFIT FROM SURGERY OR WHICH COULD BE HARMED BY A CONSERVATIVE WATCHFUL WAITING APPROACH UROLOGISTS ARE EMBROILED IN CONTROVERSY OVER THE BEST STRATEGIES FOR TREATING EARLY STAGE DISEASE THE MESSAGE OF OUR STUDY IS THAT WATCHFUL WAITING IS A REASONABLE ALTERNATIVE TO SURGERY AND RADIATION SAID GERALD W. CHODAK PROFESSOR OF SURGERY AT THE UNIVERSITY OF CHICAGO AND DIRECTOR OF THE PROSTATE AND UROLOGY CENTER AT WEISS MEMORIAL HOSPITAL IN CHICAGO BUT HE WARNED THAT DOCTORS AND PATIENTS SHOULDN'T READ THE FINDINGS AS A BROAD RECOMMENDATION AGAINST AGGRESSIVE TREATMENT DECIDING WHAT IS THE BEST APPROACH DEPENDS TO A GREAT EXTENT ON THE PREFERENCES OF THE INDIVIDUAL PATIENT DOCTOR CHODAK SAID THIS IS ABOUT TRADE OFFS DOCTOR CHODAK IS LEAD AUTHOR OF THE REPORT WHICH APPEARS IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE BUT THE REPORT DREW SHARP CRITICISM FROM WILLIAM CATALONA CHIEF OF UROLOGY AT WASHINGTON UNIVERSITY MEDICAL SCHOOL SAINT LOUIS WHOSE RESEARCH HAS LED TO WIDESPREAD USE OF A BLOOD TEST KNOWN AS THE P. S. A. TEST TO DETECT PROSTATE CANCER IN ITS EARLY STAGES THESE RESEARCHERS ARE PRESENTING A TERRIBLE PICTURE OF ACTIVE TREATMENT AND A ROSY PICTURE OF WATCHFUL WAITING AND THEY'RE MISLEADING THE PUBLIC DOCTOR CATALONA DECLARED AS A RESULT OF THE P. S. A. TEST MORE THAN TWO HUNDRED THOUSAND U. S. MEN ARE EXPECTED TO BE DIAGNOSED WITH PROSTATE CANCER THIS YEAR MANY OF THEM WHEN THE DISEASE IS CONFINED TO THE PROSTATE AND CONSIDERED TREATABLE QUOTE THESE MEN WILL HAVE A BRIEF WINDOW OF OPPORTUNITY TO GET CURED QUOTE THROUGH SURGERY HE SAID IF THEY GET CURED THEY'RE CLEAN FOR THE REST OF THEIR LIVES HE ALSO MAINTAINED THAT THE SUBJECTS IN THE STUDY WERE DOMINATED BY OLDER MEN WITH LOW GRADE TUMORS THE KIND OF MEN FOR WHOM WATCHFUL WAITING IS ALREADY OFTEN RECOMMENDED THEY AREN'T REPRESENTATIVE OF A CHANGING POPULATION OF PATIENTS WITH PROSTATE CANCER HE SAID THE STUDY IS BASED ON AN ANALYSIS OF SIX OTHER REPORTS INVOLVING EIGHT HUNDRED TWENTY EIGHT MEN FROM ISRAEL SCOTLAND SWEDEN AND THE U. S. ALL WERE BELIEVED TO HAVE CANCER CONFINED TO THE PROSTATE GLAND AND NONE WERE TREATED INITIALLY THOUGH MANY WERE GIVEN HORMONE TREATMENTS LATER IN THE COURSE OF THEIR DISEASE DOCTOR CHODAK AND HIS COLLEAGUES FOUND THAT EIGHTY SEVEN PERCENT OF THOSE CONSIDERED TO HAVE EITHER GRADE ONE OR GRADE TWO TUMORS CONSIDERED LESS AGGRESSIVE WHEN THEY WERE DIAGNOSED WERE STILL ALIVE TEN YEARS LATER JUST THIRTY FOUR PERCENT OF MEN WITH GRADE THREE TUMORS SURVIVED WITH THE DISEASE FOR TEN YEARS THE FIGURES DON'T INCLUDE MEN WHO DIED OF OTHER CAUSES DOCTOR CHODAK SAID SOME OTHER STUDIES INDICATE THAT TEN YEAR SURVIVAL RATES FOR SURGERY AND RADIATION ARE ABOUT NINETY FOUR PERCENT BUT JOSEPH E. OESTERLING A UROLOGIST AT THE MAYO CLINIC ROCHESTER MINNESOTA SAID THAT A VALID COMPARISON WITH THE RESULTS OF DOCTOR CHODAK'S STUDY ISN'T POSSIBLE BECAUSE OF DIFFERENCES IN STUDY METHODS AND GROUPS OF PATIENTS A STUDY PUBLISHED LAST YEAR SHOWED THAT SURGICAL REMOVAL OF THE PROSTATE AS A CANCER TREATMENT INCREASED SIXFOLD BETWEEN NINETEEN EIGHTY FOUR AND NINETEEN NINETY PROVOKING CONCERN THAT MANY PATIENTS WERE RISKING SUCH COMPLICATIONS AS IMPOTENCE AND INCONTINENCE WITH LIMITED EVIDENCE OF BENEFIT DOCTOR OESTERLING SAID INCREASED USE OF THE PROCEDURE KNOWN AS RADICAL PROSTATECTOMY PARTLY REFLECTS NEW SURGICAL TECHNIQUES THAT CAN REDUCE CHANCES OF COMPLICATIONS HE SAID THE NEW STUDY PROVIDES MORE EVIDENCE TO SUPPORT CONSERVATIVE APPROACHES FOR OLDER MEN OR THOSE WITH OTHER DEBILITATING ILLNESSES FOR PEOPLE THAT HAVE LESS THAN TEN YEARS TO LIVE WATCHFUL WAITING COULD GIVE YOU RESULTS SIMILAR TO WHAT YOU WOULD GET WITH RADIATION OR SURGERY DOCTOR OESTERLING SAID BUT DOCTOR CHODAK MAINTAINED THAT FEW UROLOGISTS FEEL COMFORTABLE RECOMMENDING WATCHFUL WAITING EVEN IN SUCH CASES BECAUSE PREVIOUS STUDIES HAVE BEEN FLAWED AND BECAUSE THERE AREN'T ANY RELIABLE DATA COMPARING THE RESULTS OF SURGERY RADIATION AND WATCHFUL WAITING HEAD TO HEAD AMONG PATIENTS WITH SIMILAR LEVELS OF DISEASE HE ARGUED THAT THE STUDY SHOULD GIVE DOCTORS CONFIDENCE THAT SIMPLY MONITORING THE COURSE OF DISEASE IS A VALID APPROACH FOR MANY PATIENTS THE REPORT ALSO FOUND THAT CANCER HAD SPREAD BEYOND THE PROSTATE GLAND AFTER TEN YEARS IN NINETEEN PERCENT OF PATIENTS DIAGNOSED WITH A GRADE ONE TUMOR AND FORTY TWO PERCENT OF THOSE WITH A GRADE TWO TUMOR THOSE RESULTS CLEARLY DEMONSTRATE THAT PROSTATE CANCER IS A PROGRESSIVE DISEASE WHEN MANAGED CONSERVATIVELY THE RESEARCHERS WROTE DOCTOR CHODAK SAID BOTH PATIENTS AND THEIR DOCTORS CAN WEIGH SUCH CHANCES IN CONSIDERING A CHOICE OF TREATMENT WE CAN'T PREDICT FOR SURE WHO WILL DO WELL WITH WATCHFUL WAITING AND WHO WILL DO POORLY HE SAID EACH INDIVIDUAL HAS A DILEMMA WHAT IS HE WILLING TO RISK IN ORDER TO GAIN A BENEFIT WHILE THE FINDINGS DON'T POINT CLEARLY TO ONE OPTION OR ANOTHER HE ADDED THEY QUOTE WILL MAKE IT EASIER TO COUNSEL PATIENTS ABOUT WHAT HAPPENS TO THOSE WHO CHOOSE WATCHFUL WAITING QUOTE HE CALLS HER QUOTE MIRIAM QUOTE SHE CALLS HIM MY GENERAL SHE'S A WEALTHY NEW YORKER WHOSE FORMER FIFTH AVENUE OBJETS D'ART BOUTIQUES BLOSSOMED INTO BURMESE BUSINESS DEALS HE'S A DEVOUT BUDDHIST WHOSE JET FLYING LESSONS AT NEVADA'S NELLIS AIR FORCE BASE EVENTUALLY PROPELLED HIM TO NUMBER TWO IN BURMA'S AIR FORCE AND THEN INTO THE UNLIKELY JOB OF MINISTER OF LIVESTOCK BREEDING AND FISHERIES THEIR LIAISON HAS ALL THE MAKINGS OF A CONVOLUTED BURMESE CINEMA CLASSIC EXCEPT ONE WHAT BRINGS MIRIAM MARSHALL SEGAL AND BRIGADEER GENERAL MAUNG MAUNG TOGETHER ISN'T LOVE IT'S SHRIMP A TINY JOINT VENTURE PROCESSING THEM FOR EXPORT THE SETTING IS A LUSH TEXAS SIZED NATION OF FORTY TWO MILLION PEOPLE THAT WAS SEALED OFF FROM THE MODERN WORLD FOR NEARLY THREE DECADES WRACKED BY SPUTTERING CIVIL WARS FOUGHT BY COMMUNIST INSURGENTS AND SECESSIONIST HILL TRIBES MISRULED SINCE NINETEEN SIXTY TWO BY A MILITARY DICTATOR AND ECONOMICALLY RUINED BY HIS SO CALLED BURMESE WAY OF SOCIALISM ONCE THE WORLD'S BIGGEST RICE EXPORTER BURMA SANK INTO NEAR BANKRUPTCY A RESOURCE RICH BUT UNDEVELOPED SOUTHEAST ASIAN AFTERTHOUGHT WHERE TIME STOOD STILL WATER BUFFALO STILL PLOW FIELDS AND ELEPHANTS HAUL LOGS RANGOON A COMMERCIAL AND SOCIAL MECCA WHEN SINGAPORE AND BANGKOK WERE MALARIAL SWAMPS AND OPIUM DENS SANK INTO MOLDY DECAY NOW LIKE CHINA AND VIETNAM BURMA HAS BEGUN TO OPEN UP AND STIR MARKET ORIENTED REFORMS HAVE BEGUN TO MOVE A MORIBUND ECONOMY SPROUT PRIVATE BURMESE ENTREPRENEURS AND LURE FOREIGN INVESTORS AND BURMESE EXPATRIATES THE U. S. EMBASSY CALLED LAST YEAR'S REPORTED TEN POINT NINE PERCENT GROWTH IN GROSS DOMESTIC PRODUCT A STUNNING RECOVERY FROM YEARS OF SLOW OR NEGATIVE GROWTH AUTHORITIES HAVE STRUCK CEASE FIRE DEALS WITH NINE OF ELEVEN MAJOR ETHNIC INSURGENT GROUPS IT HAS BEEN FIGHTING SINCE THE END OF WORLD WAR TWO THEREBY OPENING ASIA'S LAST FRONTIER WILDERNESS AREA FOR DEVELOPMENT REGIONAL INVESTORS AND GOVERNMENTS ARE ACTIVELY PLANNING A GOLDEN RECTANGLE OF ECONOMIC BOOM WHERE BURMA CHINA LAOS AND THAILAND COME TOGETHER AN AREA LONG KNOWN AS THE OPIUM GROWING GOLDEN TRIANGLE A HUGE THAI FINANCED CASINO IS UNDER CONSTRUCTION THERE NOW THERE'S ONLY ONE PROBLEM HERE BURMA IS RULED BY ONE OF THE WORLD'S MOST LOATHED MILITARY JUNTAS A GROUP OF TWENTY TWO GENERALS WHO SEIZED POWER IN NINETEEN EIGHTY EIGHT UNDER THE BANNER OF THE STATE LAW AND ORDER RESTORATION COUNCIL OR SLORC AND PROCEEDED TO MOW DOWN HUNDREDS OF UNARMED STUDENTS AND OTHER PRO DEMOCRACY DEMONSTRATORS IMPRISON THOUSANDS MORE AND SEND TENS OF THOUSANDS FLEEING INTO EXILE WHICH BRINGS US BACK TO OUR MAIN CHARACTERS GENERAL MAUNG MAUNG A GENTLE MAN WITH A READY SMILE ISN'T A MEMBER OF SLORC BUT AS A CABINET MINISTER HE WORKS FOR SLORC WHICH IS DESPERATE TO EARN HARD CURRENCY SEAFOOD EXPORTS HE SAYS COULD QUICKLY BECOME THE COUNTRY'S BIGGEST HARD CURRENCY EARNER MEANWHILE HIS PARTNER MRS. SEGAL HAS BECOME SLORC'S MOST PASSIONATE AMERICAN DEFENDER EVEN THOUGH SHE DESCRIBES HERSELF AS NOT A POLITICAL PERSON AT ALL SHE HAS ALSO BECOME ONE OF THE MOST VISIBLE AMERICAN INVESTORS IN BURMA WHILE OTHERS FILE SHAREHOLDER RESOLUTIONS CALLING FOR CORPORATE WITHDRAWAL FROM BURMA OF ITS BIGGEST AMERICAN INVESTORS INCLUDING TEXACO INCORPORATED UNOCAL CORPORATION AND AMOCO CORPORATION MRS. SEGAL IS RUNNING A ONE WOMAN CRUSADE TO GET AMERICANS MORE INVOLVED SHE HAS TESTIFIED BEFORE CONGRESS ON SLORC'S BEHALF FETED BURMESE GOVERNMENT DELEGATIONS AT HER CENTRAL PARK WEST APARTMENT IN MANHATTAN BUTTONHOLED POLITICIANS PENNED POSITION PAPERS AND LETTERS TO EDITORS AND BENT TELEPHONE EARS ARGUING THAT SLORC IS THE MUCHMALIGNED VICTIM OF BAD DIPLOMACY AND BIASED JOURNALISM SHE WANTS THE U. S. TO GRANT BURMA MOST FAVORED NATION TRADING STATUS AND ADOPT THE KIND OF QUOTE CONSTRUCTIVE ENGAGEMENT QUOTE THAT SINGAPORE THAILAND AND CHINA HAVE FOLLOWED TROUBLE IS THIS IS THE SAME SLORC THAT PRESIDENT CLINTON ACCUSED IN MAY OF CREATING A TRAGIC HUMAN RIGHTS SITUATION HE ORDERED A POLICY REVIEW WITH A VIEW TOWARD IMPOSING ECONOMIC OR OTHER SANCTIONS SLORC SAYS REPRESENTATIVE JIM LEACH A REPUBLICAN FROM INDIANA IS AS ODIOUS AS ITS NAME SOUNDS REPUBLICAN REPRESENTATIVE DANA ROHRABACHER OF CALIFORNIA SAYS IT DESERVES GANGSTER STATUS AND THE LAST U. S. AMBASSADOR TO BURMA BURTON LEVIN CALLS SLORC A COLLECTION OF THUGS AND DOPES THE U. S. AND OTHER GOVERNMENTS EXCORIATE SLORC FOR CONTINUING HUMAN RIGHTS ABUSES AND EMBARGO FOREIGN AID HUMAN RIGHTS WATCH CALLS IT A HUMAN RIGHTS PARIAH NOTING THAT IT HAS KEPT AUNG SAN SUU KYI A NOBEL PEACE PRIZE WINNING POLITICAL OPPONENT UNDER HOUSE ARREST FOR FOUR AND ONE HALF YEARS SLORC SAYS SHE'S FREE TO LEAVE THE COUNTRY ANYTIME CRITICS OF SLORC DISMISS THE FIFTY THREE YEAR OLD MRS. SEGAL AS A MISLED MANHATTAN BAUBLEHEAD WHO IS EITHER BEING USED BY A CYNICAL REGIME OR IS A CYNIC HERSELF WHO IS COYLY EMBRACING SLORC TO MAKE MONEY SHE CALLS HERSELF AN ALTRUISTIC MONEYMAKER INTERESTED IN BOTH PROFITING AND HELPING LAST JUNE SHE SET UP A ONE HUNDRED THOUSAND DOLLAR SCHOLARSHIP FUND FOR BURMESE STUDENTS AT BROWN UNIVERSITY MEANWHILE THE COMPANY SHE HEADS MMAI HOLDINGS LIMITED HAS INVESTED MORE THAN FOUR MILLION DOLLARS IN BURMESE VENTURES INCLUDING THE SHRIMP PLANT A FISHING VENTURE AND A CEMENT BAGGING FACILITY THE FIRM REGISTERED IN THE BRITISH WEST INDIES INCLUDES AS A PARTNER THE PEREGRINE MERCHANT BANKING GROUP OF HONG KONG AND TEN FRIENDS OF MRS. SEGAL IT IS ALSO NEGOTIATING HOTEL TIMBER DUTY FREE CELLULAR PHONE AIRCRAFT REPAIR EXPATRIATE HOUSING CONSTRUCTION CAR DEALERSHIP AND PHARMACEUTICAL IMPORT VENTURES SHE SAYS SHE ALSO HOPES TO SET UP A CONSULTING COMPANY TO HELP OTHER FOREIGNERS INVEST QUOTE DON'T SELL HER SHORT QUOTE SAYS GERALDINE STUTZ FORMER PRESIDENT OF HENRI BENDEL THE NEW YORK FASHION STORE IN WHICH MRS. SEGAL OPENED THE SUCCESSFUL QUOTE PORTS OF CALL QUOTE BOUTIQUE IN THE MID NINETEEN SIXTIES ANOTHER FRIEND STANLEY MARCUS OF NEIMAN MARCUS SAYS HOWEVER SHE'S SMART AS THE DEVIL ON MATTERS OF FASHION AND TASTE BUT I WOULDN'T APPOINT HER SECRETARY OF STATE NEVERTHELESS MRS. SEGAL ARGUES THAT THE U. S. PUNISHES SLORC BY WITHHOLDING AN AMBASSADOR DENYING AID AND TRYING TO ISOLATE THE REGIME BUT NOT THE MASTERMINDS OF CHINA'S TIANANMEN SQUARE MASSACRE IF THE U. S. THINKS DIPLOMATIC AND ECONOMIC ENGAGEMENT IN CHINA WILL HELP THE CAUSES OF DEMOCRACY AND HUMAN RIGHTS WHY NOT IN BURMA TOO SHE ASKS UNLIKE WITH VIETNAM THE U. S. HASN'T IMPOSED A TRADE EMBARGO ON BURMA MRS. SEGAL WHO BEGAN IMPORTING BURMESE HANDICRAFTS IN NINETEEN SEVENTY EIGHT SAYS SHE DIDN'T START DOING BATTLE FOR THEM UNTIL NINETEEN NINETY ONE WHEN SHE BEGAN TO SEE POSITIVE CHANGES AND BECAME CONVINCED THAT THE NEW GENERATION OF GENERALS RUNNING SLORC WAS SINCERE WITHOUT FOREIGN AID SHE SAYS THEY HAVE DONE MORE TO OPEN UP AND IMPROVE BURMA IN THE PAST THREE YEARS THAN THEIR PREDECESSORS DID IN THE PREVIOUS THIRTY SHE HAS A POINT THEIR PREDECESSOR AND MENTOR GENERAL NE WIN SEIZED POWER IN NINETEEN SIXTY TWO AND LAUNCHED THE DISASTROUS BURMESE WAY OF SOCIALISM AND OTHER POLICIES WITH WHAT HISTORIANS CALL EXTRAORDINARY INEPTITUDE NOT TO MENTION KEEN ATTENTION TO HIS ASTROLOGER NE WIN'S NINETEEN EIGHTY SEVEN DEMONETIZATION OF LARGE BANKNOTES WHICH WIPED OUT THE SAVINGS OF MANY THERETOFORE NONPOLITICAL BURMESE TRIGGERED THE NINETEEN EIGHTY EIGHT PRO DEMOCRACY DEMONSTRATIONS HIS RETIREMENT SLORC'S TAKEOVER AND ITS CRACKDOWN COMPARED TO NE WIN THE MEN OF SLORC COME ON LIKE PROGRESSIVE REFORMERS HOWEVER SLORC BESMIRCHED ITSELF NOT ONLY BY ITS BRUTAL NINETEEN EIGHTY EIGHT CRACKDOWN LIKE CHINA IT ARGUED THE NATION WAS HEADED FOR CHAOS AND ANARCHY BUT ALSO FOR ITS HANDLING OF ELECTIONS IN NINETEEN NINETY SLORC'S PARTY GOT TROUNCED BY A PRO DEMOCRACY COALITION INSTEAD OF STEPPING DOWN SLORC VOIDED THE VOTE DECLARING IT WOULD CONTINUE RULING BY DECREE UNTIL A NEW CONSTITUTION WAS DRAFTED BY A SLORC CONTROLLED CONVENTION AT WHICH CRITICISM OF THE GOVERNMENT IS OFFICIALLY OUTLAWED INDEED IN OCTOBER A CONVENTION DELEGATE AND TEN OF HIS NONDELEGATE SUPPORTERS WERE SENTENCED TO TWENTY YEARS IN PRISON FOR DISTRIBUTING SUPPOSEDLY SUBVERSIVE LEAFLETS AMONG OTHER DELEGATES SLORC SAYS THEY WERE THREATS MRS. SEGAL WHO WASN'T IN BURMA DURING EITHER THE NINETEEN EIGHTY EIGHT CRACKDOWN OR THE NINETEEN NINETY ELECTION DOESN'T DEEM SLORC FAULTLESS UNFORTUNATELY ONE OUTDATED PICTURE ONE STILL SHOT FROZEN IN TIME SEEMS TO RIVET EVERYONE'S ATTENTION SHE WRITES WHILE SLORC'S POSITIVE STEPS SINCE THEN GO UNHEEDED SOME DIPLOMATS IN RANGOON AGREE AND HAVE BEGUN TO MUTE PREVIOUSLY HARSH CRITICISM THESE PEOPLE AREN'T SYRIA NORTH KOREA OR IRAQ SAYS ONE QUOTE IT'S MORE PINOCHET THAN POL POT QUOTE SAYS ANOTHER OTHERS EVEN PRAISE SLORC'S ENERGY AND HARD WORK ITS REPORTED RELEASE OF MORE THAN TWO THOUSAND POLITICAL PRISONERS ITS EFFORTS AT NARCOTICS SUPPRESSION BURMA IS THE WORLD'S BIGGEST OPIUM PRODUCER EVEN ITS ENLIGHTENED POLICIES IN PRESERVING ITS TEAK FORESTS BURMA HAS ABOUT SEVENTY FIVE PERCENT OF THE WORLD'S TEAK RESERVES SLORC'S LEAST BELIEVED ASSERTION IS THAT IT WILL RESTORE DEMOCRACY ALBEIT WITH THE MILITARY PLAYING A LEADING ROLE IN FUTURE GOVERNMENTS THE OBVIOUS MODEL IS INDONESIA INDEED SLORC'S POWERFUL FIRST SECRETARY THE FIFTY FIVE YEAR OLD LIEUTENANT GENERAL KHIN NYUNT LED A FIVE MAN DELEGATION TO INDONESIA JUST BEFORE CHRISTMAS AND AFTER A MEETING WITH PRESIDENT SUHARTO A FORMER REVOLUTIONARY GENERAL HIMSELF CALLED INDONESIA A MODEL OF STABILITY FOR BURMA ACTUALLY BURMA TODAY MORE RESEMBLES INDONESIA TWENTY FIVE YEARS AGO WHEN SUHARTO AND HIS FELLOW GENERALS BROOKED NO OPPOSITION IN THE WAKE OF A BLOODBATH AGAINST SUSPECTED COMMUNISTS THAT LEFT HUNDREDS OF THOUSANDS DEAD AND TENS OF THOUSANDS MORE IN PRISON INDONESIA'S RULERS IN THOSE DAYS HOWEVER HAD TWO THINGS GOING FOR THEM THAT SLORC DOESN'T FIRST THE COLD WAR ALLOWED WESTERN AID TO POUR IN WITH ONLY TOKEN ATTENTION TO HUMAN RIGHTS SECOND INDONESIA HAD A TEAM OF ENLIGHTENED ECONOMIC PLANNERS EDUCATED IN THE WEST AND DEDICATED TO SUHARTO'S COMMITMENT TO NATIONAL DEVELOPMENT NO SUCH COMPETENCE APPEARS TO EXIST IN BURMA FEEDING CRITICS WHO CONTEND THE ANNOUNCED POLICIES ARE MERE WINDOW DRESSING MEANWHILE SLORC TOLERATES NO POLITICAL DISSENSION THEY'VE RELEASED SOME POLITICAL PRISONERS BUT ONLY THE PEOPLE THEY DON'T FEAR SAYS A DIPLOMAT ORGANIZED OPPOSITION HAS BEEN DECIMATED AT LEAST TWENTY SEVEN OPPOSITION POLITICIANS ELECTED IN NINETEEN NINETY REMAIN IN PRISON DIPLOMATS AND BURMESE IN RANGOON SAY SLORC FEARS SOME SORT OF SPONTANEOUS UPRISING AND THEREFORE RULES THROUGH INTIMIDATION ITS NETWORK OF INFORMANTS REPORTING TO THE MILITARY'S VAST INTELLIGENCE APPARATUS WHILE OFFICIALS SAY BURMESE CAN TALK FREELY SEVERAL SLORC OPPONENTS DECLINED TO SPEAK TO OR EVEN BE SEEN WITH A VISITING REPORTER SAYING THROUGH FAMILY MEMBERS OR FRIENDS THAT THEY FEARED REPRISALS THOSE WILLING TO TALK DID SO AT MEETINGS AT OTHER PEOPLES' HOUSES OR OFFICES MUCH THE SAME WAY DISSIDENTS MET JOURNALISTS IN BEIJING SEOUL TAIPEI JAKARTA AND SINGAPORE IN THE PAST ALL THOSE PLACES HOWEVER MANAGED TO BLUNT HUMAN RIGHTS CRITICISM WITH STEADY IMPROVEMENTS IN LIVING STANDARDS ECONOMIC RESULTS IN BURMA CONTINUE TO BE MOSTLY THEORETICAL FOR ALL BUT A TINY CLASS OF BUDDING ENTREPRENEURS WHEN SLORC ABANDONED SOCIALISM AND OPENED THE COUNTRY TO FOREIGN INVESTORS IN NINETEEN EIGHTY EIGHT INVESTORS WERE SLOW TO ARRIVE THIS WAS POSSIBLY BECAUSE IN A MOVE OF EXTRAORDINARY INEPTITUDE SLORC RENAMED THE COUNTRY MYANMAR BURMA WAS THE NAME BRITISH COLONIALISTS CHOSE THEREBY LOWERING ITS PROFILE CONSIDERABLY NEVERTHELESS SLORC SAYS NEARLY TWO BILLION DOLLARS IN INVESTMENTS MOST OF THEM IN OIL AND GAS PROJECTS AND TOURIST HOTELS HAS BEEN PLEDGED MUCH OF IT IN THE PAST TWO YEARS THE GOVERNMENT SAYS IT WANTS TO BUILD A SKI RESORT IN THE BURMESE HIMALAYAS THUS FAR SLORC HAS CONCENTRATED ITS EFFORTS ON UNIFYING A NATION THAT BRITISH COLONIALISTS IN NINETEEN FORTY EIGHT LEFT DEEPLY DIVIDED INTO ETHNIC ENCLAVES STARTING WITH THE WA GROUP WHICH TURNED AGAINST ITS BURMESE COMMUNIST PARTY OVERLORDS IN NINETEEN EIGHTY NINE SLORC HAS OFFERED LIMITED REGIONAL AUTONOMY AND DEVELOPMENT AID IN EXCHANGE FOR PEACE THE POWERFUL KACHINS ARE THE LATEST TO MAKE A DEAL THE TWO HOLDOUTS THE KARENS AND MONS ARE WAVERING IN RANGOON OVER THE CHRISTMAS HOLIDAYS MEANWHILE MRS. SEGAL HAS BEEN BUSILY PURSUING HER BUSINESS INTERESTS IN HER YEARS OF BUYING BURMESE HANDICRAFTS SHE GOT TO KNOW MANY OF THE MEN WHO NOW RUN THE COUNTRY IN NINETEEN NINETY WITH SLORC EAGER TO DEMONSTRATE ITS OPENNESS TO FOREIGN INVESTORS BUT OUTSIDERS STILL LEERY MRS. SEGAL SIGNED A JOINT VENTURE WITH GENERAL MAUNG MAUNG'S FISHERIES MINISTRY FOR EXCLUSIVE FISHING RIGHTS TO SOME FOUR HUNDRED THOUSAND SQUARE MILES OF DEEP WATER OFFSHORE TERRITORY THE COMPANY NAMED THE MYANMAR AMERICAN FISHERIES COMPANY MAFCO SUBSEQUENTLY SUBLET THE RIGHTS TO A CHINESE TRAWLING COMPANY BASED IN SPAIN WANG KAI DI CHINA'S ECONOMIC AND COMMERCIAL ATTACHE IN RANGOON SAYS HE HELPED PERSUADE THE CHINESE COMPANY TO JOIN MAFCO BECAUSE AROUND RANGOON MRS. SEGAL HAD A LOT OF GANXI THE CHINESE WORD FOR CONNECTIONS AND PULL THE CHINESE BEGAN FISHING IN OCTOBER MRS. SEGAL'S SIXTEEN PAGE PRESS KIT WHICH SHE PROFFERS IN LIEU OF A RESUME INCLUDES PHOTOS AND NEWSPAPER CLIPS OF HER MEETINGS WITH TOP BURMESE OFFICIALS INCLUDING GENERAL KHIN NYUNT AND U. KO LAY RANGOON'S MAYOR THE BIOGRAPHICAL SECTION DESCRIBES HER AS BEING QUOTE AN ACCOMPLISHED PERSON WHO RODE AT THE FRONTIERS OF AND EXEMPLIFIED THE TRENDS OF HER TIMES QUOTE THE MONTREAL GAZETTE IS QUOTED AS ATTRIBUTING HER BUSINESS SUCCESS TO HER ABILITY TO ADAPT MYSTERIOUS EASTERN OBJECTS TO THE WAY OF LIFE OF UPPER CRUST NORTH AMERICANS GENERAL MAUNG MAUNG MET SOME OF THE LATTER IN A VISIT TO THE U. S. IN APRIL THAT MRS. SEGAL ARRANGED THE FIRST BY A BURMESE OF CABINET RANK IN THIRTY THREE YEARS SHE HAS ALSO DEVELOPED AN ABILITY TO EXPLAIN EASTERN WAYS WHEN AN ASIAN MAGAZINE PUBLISHED PHOTOS RECENTLY OF BURMESE CHAIN GANGS BUILDING ROADS SHE TELEPHONED A REPORTER FROM HONG KONG TO SAY THOSE ARE MURDERERS AND DRUG ADDICTS NOT POLITICAL PRISONERS DOCTOR PEPPER SLASH SEVEN UP COMPANIES SAID IT HAS PURCHASED SEVENTY THREE THOUSAND FOUR HUNDRED TWO OR ABOUT FIFTEEN PERCENT OF ITS ELEVEN AND ONE HALF PERCENT SENIOR SUBORDINATED DISCOUNT NOTES DUE IN TWO THOUSAND TWO THE PURCHASES MADE ON THE OPEN MARKET FOR ABOUT FORTY EIGHT POINT FIVE MILLION DOLLARS WERE PART OF A PLAN TO CONSOLIDATE AND SIMPLIFY ITS CAPITAL STRUCTURE THE SOFT DRINK MAKER SAID THEY WERE FUNDED BY THE COMPANY'S BANK CREDIT AGREEMENT THE COMPANY SAID THREE HUNDRED EIGHTY EIGHT THOUSAND EIGHT HUNDRED TWENTY NINE DISCOUNT NOTES ARE STILL OUTSTANDING THE OFFICIAL SWEDISH UNEMPLOYMENT RATE INCREASED TO EIGHT POINT EIGHT PERCENT OF THE WORK FORCE IN JANUARY FROM EIGHT PERCENT IN DECEMBER AND FROM SEVEN POINT FIVE PERCENT IN JANUARY NINETEEN NINETY THREE ACCORDING TO SCB THE NATIONAL STATISTICS AGENCY THE THREE MAIN CORPORATE DEFENDANTS IN BREAST IMPLANT LITIGATION DISCLOSED HOW THEY WILL DIVIDE UP LIABILITY IN A PROPOSED FOUR BILLION DOLLAR SETTLEMENT WITH DOW CORNING CORPORATION AGREEING TO FUND ABOUT HALF OF THE AMOUNT DOW CORNING THE LEADING U. S. MAKER OF SILICONE BREAST IMPLANTS SAID IT AGREED TO PAY ABOUT TWO BILLION DOLLARS OVER THIRTY YEARS AS ITS SHARE OF THE SETTLEMENT AGREEMENT DOW CORNING IS A MIDLAND MICHIGAN JOINT VENTURE OF DOW CHEMICAL COMPANY AND CORNING INCORPORATED IT WAS PREVIOUSLY REPORTED THAT DOW CORNING BRISTOL MYERS SQUIBB COMPANY BAXTER INTERNATIONAL INCORPORATED AND SEVERAL SMALLER PLAYERS REACHED AGREEMENT OVER THE WEEKEND ON THE DETAILS OF FUNDING THE SETTLEMENT AGREEMENT THE SETTLEMENT AGREEMENT ISN'T FINAL YET NEGOTIATORS STILL ARE IRONING OUT OTHER DETAILS WITH A DEADLINE OF MARCH EIGHTH FOR REACHING A FINAL DEAL THEN THE PROPOSAL WOULD HAVE TO GO BEFORE U. S. DISTRICT JUDGE SAM C. POINTER JUNIOR IN BIRMINGHAM ALABAMA BEFORE IT COULD GO INTO EFFECT BRISTOL MYERS WOULD BE THE SECOND BIGGEST PAYER INTO THE LITIGATION SETTLEMENT FUND A SPOKESWOMAN SAID IT WOULD KICK IN QUOTE UP TO ONE POINT ONE FIVE BILLION DOLLARS QUOTE TOWARD THE SETTLEMENT OVER THE THIRTY YEARS OF THE DEAL BAXTER SAID IT WILL CONTRIBUTE APPROXIMATELY FIVE HUNDRED FIFTY SIX MILLION DOLLARS TO THE FUND ALL THREE COMPANIES PREVIOUSLY TOOK CHARGES RELATED TO THE COSTS OF IMPLANT LITIGATION AND ALL SAID THEY EXPECT VARYING PORTIONS OF THEIR LIABILITY TO BE PAID BY INSURERS DOW CORNING AND BRISTOL MYERS HAVE DROPPED OUT OF THE BREAST IMPLANT BUSINESS BAXTER NEVER WAS IN IT BUT INHERITED LIABILITY THROUGH A MERGER ALL THREE COMPANIES DENY SILICONE IMPLANTS ARE RELATED TO ANY ILLNESSES ROBERT L. COSTELLO FORTY TWO YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ENGINEERING CONCERN SUCCEEDING JIMMY D. ALLISON FIFTY THREE WHO RESIGNED THOSE POSITIONS THE COMPANY SAID MR. ALLISON ASKED FOR A REASSIGNMENT TO CONCENTRATE ON QUOTE PUBLIC SLASH PRIVATE PARTNERSHIP ACTIVITIES PARTICULARLY IN THE AREA OF ALTERNATIVE FINANCING METHODOLOGIES FOR TRANSPORTATION INFRASTRUCTURE PROJECTS QUOTE HE WAS NAMED A VICE PRESIDENT MR. COSTELLO WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER OF THE COMPANY THE PERCENTAGE OF SPAIN'S TOTAL WORK FORCE REGISTERED AS UNEMPLOYED CLIMBED TO EIGHTEEN PERCENT IN JANUARY FROM SEVENTEEN POINT FIVE PERCENT IN DECEMBER THE LABOR MINISTRY SAID THE MINISTRY SAID THE NUMBER OF PEOPLE REGISTERED AS OUT OF WORK ROSE TWO POINT FOUR PERCENT OR SIXTY THREE THOUSAND SIX HUNDRED FIFTEEN TO TWO MILLION SEVEN HUNDRED SEVENTY THOUSAND BY THE END OF JANUARY FROM THE PREVIOUS MONTH THIS RAILCAR MAINTENANCE AND RETROFITTER NAMED PHILIP C. KANTZ PRESIDENT AND CHIEF EXECUTIVE OFFICER MR. KANTZ FIFTY YEARS OLD WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITEL CONTAINERS INTERNATIONAL CORPORATION HE SUCCEEDS STEVEN L. PEASE WHO RETURNS TO DEUCALION VENTURE PARTNERS IN SONOMA CALIFORNIA MR. PEASE FIFTY OVERSAW TRANSCISCO'S RECOVERY FROM REORGANIZATION PROCEEDINGS UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE LAST YEAR MICHAEL M. AMEEN JUNIOR AN OIL INDUSTRY CONSULTANT WAS ELECTED A DIRECTOR OF THIS OIL AND NATURAL GAS EXPLORATION AND PRODUCTION COMPANY HE SUCCEEDS GEORGE W. BUSH A SON OF THE FORMER PRESIDENT OF THE U. S. WHO RESIGNED TO RUN FOR THE GOVERNORSHIP OF TEXAS CANADIAN PACIFIC LIMITED SAID IT WILL ISSUE TWENTY TWO MILLION COMMON SHARES AT TWENTY TWO POINT SEVEN FIVE CANADIAN DOLLARS SIXTEEN U. S. DOLLARS AND NINETY FOUR CENTS EACH FOR TOTAL PROCEEDS OF FIVE HUNDRED POINT FIVE MILLION CANADIAN DOLLARS THE ISSUE WHICH ISN'T BEING OFFERED IN THE U. S. IS EXPECTED TO CLOSE MARCH TENTH THE TRANSPORTATION AND ENERGY CONGLOMERATE SAID IT WILL USE NET PROCEEDS OF ABOUT FOUR HUNDRED EIGHTY FOUR MILLION CANADIAN DOLLARS TO REPAY DEBT FINANCE ADDITIONS TO PLANT AND PROPERTY AND FOR GENERAL CORPORATE PURPOSES R. B. C. DOMINION SECURITIES INCORPORATED IS LEAD UNDERWRITER CANADIAN PACIFIC CURRENTLY HAS THREE HUNDRED NINETEEN POINT THREE MILLION SHARES OUTSTANDING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CANADIAN PACIFIC CLOSED AT SIXTEEN DOLLARS AND SEVENTY FIVE CENTS DOWN ONE DOLLAR THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND THREE EIGHTHS PERCENT HIGH THREE AND ONE QUARTER PERCENT LOW THREE AND FIVE SIXTEENTHS PERCENT NEAR CLOSING BID THREE AND THREE EIGHTHS PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT THREE SEVEN PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT FOUR OH PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT FOUR FIVE PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT FOUR EIGHT PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT FIVE OH PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT FIVE FIVE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED THIRTY NINE DAYS THREE POINT SIX THREE PERCENT TWO HUNDRED FORTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT FOUR FIVE PERCENT THIRTY DAYS THREE POINT FOUR NINE PERCENT SIXTY DAYS THREE POINT FIVE FOUR PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT SEVEN TWO PERCENT ONE MONTH TWO POINT SEVEN SEVEN PERCENT TWO MONTHS TWO POINT EIGHT THREE PERCENT THREE MONTHS THREE PERCENT SIX MONTHS THREE POINT TWO NINE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT THREE TWO PERCENT ONE MONTH THREE POINT FOUR TWO PERCENT THREE MONTHS THREE POINT SIX OH PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT TWO NINE PERCENT THIRTY DAYS THREE POINT THREE FIVE PERCENT SIXTY DAYS THREE POINT THREE EIGHT PERCENT NINETY DAYS THREE POINT FOUR FOUR PERCENT ONE HUNDRED TWENTY DAYS THREE POINT FIVE OH PERCENT ONE HUNDRED FIFTY DAYS THREE POINT FIVE FIVE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT ONE MONTH THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT TWO MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT THREE MONTHS THREE AND FIVE EIGHTHS PERCENT THREE AND ONE HALF PERCENT FOUR MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT THREE AND NINE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE QUARTERS PERCENT THREE AND FIVE EIGHTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND THREE EIGHTHS PERCENT ONE MONTH THREE AND NINE SIXTEENTHS PERCENT THREE MONTHS THREE AND THREE QUARTERS PERCENT SIX MONTHS FOUR AND ONE SIXTEENTH PERCENT ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE THREE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT TWO FIVE PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY FOURTEENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT TWO EIGHT PERCENT THIRTEEN WEEKS THREE POINT FOUR THREE PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH SIX PERCENT SIXTY DAYS SEVEN POINT ONE TWO PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE DOW JONES TELERATE INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH ONE PERCENT SIXTY DAYS SEVEN POINT ONE OH PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT TWO FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE DOW JONES TELERATE INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS THREE NEW DIRECTORS WERE NAMED BY THIS OIL AND GAS REFINING AND MARKETING COMPANY INCREASING THE BOARD TO SIXTEEN MEMBERS NAMED WERE FRED MANOCHERIAN A REAL ESTATE DEVELOPER IN NEW YORK JAMES Q. RIORDAN RETIRED PRESIDENT OF BEKAERT CORPORATION AND WILLIAM S. SNEATH RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UNION CARBIDE CORPORATION SIMPLEX TECHNOLOGIES INCORPORATED A UNIT OF TYCO INTERNATIONAL LIMITED RECEIVED A CONTRACT FROM AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S A. T. AND T. SUBMARINE SYSTEMS INCORPORATED TERMS WEREN'T DISCLOSED SIMPLEX TECHNOLOGIES SAID IT WILL SUPPLY FIVE HUNDRED TWENTY FIVE KILOMETERS OF FIBER OPTIC TELECOMMUNICATIONS CABLE FOR A HAWAIIAN INTER ISLAND SYSTEM CONNECTING KAUAI OAHU MAUI AND HAWAII PRONET INCORPORATED SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THE ASSETS OF CHICAGO COMMUNICATIONS SERVICE INCORPORATED'S PAGING OPERATION BASED IN CHICAGO WHICH SERVES THIRTY THOUSAND SUBSCRIBERS TERMS WEREN'T DISCLOSED PRONET A PROVIDER OF PAGING AND MESSAGE SERVICES SAID IN A NEWS RELEASE THAT THE TRANSACTION IS SUBJECT TO VARIOUS CONDITIONS INCLUDING DUE DILIGENCE A DEFINITIVE PURCHASE AGREEMENT AND APPROVAL BY PRONET'S BOARD IT ALSO IS SUBJECT TO FEDERAL COMMUNICATIONS COMMISSION REGULATORY AND OTHER THIRD PARTY APPROVALS THIS MAKER OF ATHLETIC FOOTWEAR AND APPAREL SAID IT NAMED THOMAS E. CLARKE PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE JUNE FIRST NINETEEN NINETY FOUR MR. CLARKE FORTY TWO YEARS OLD IS GENERAL MANAGER OF THE NIKE BRAND HE SUCCEEDS RICHARD K. DONAHUE SIXTY SEVEN WHO BECOMES VICE CHAIRMAN OF THE BOARD HE HAS SERVED ON THE BOARD SINCE NINETEEN SEVENTY SEVEN ROBERT A. HURWICH FIFTY TWO YEARS OLD WAS NAMED VICE PRESIDENT ADMINISTRATION SECRETARY AND GENERAL COUNSEL AT THIS SERVICE COMMUNICATIONS AND MANUFACTURING COMPANY SUCCEEDING DANIEL E. MILLER WHO LEFT THE COMPANY IN JANUARY MR. HURWICH WAS VICE PRESIDENT SECRETARY AND GENERAL COUNSEL AT MOORE MCCORMACK RESOURCES INCORPORATED FROM NINETEEN SEVENTY FIVE TO NINETEEN EIGHTY NINE THE BABY BELLS HAVE SEEN THE THREAT AND PROMISE IN THE COMING WIRELESS WARS AND THEY BOTH LOOK A LOT LIKE DAVID NEVINS OF BALTIMORE MR. NEVINS A BALTIMORE PUBLIC RELATIONS EXECUTIVE WHO BEARS AN UNCANNY RESEMBLANCE TO MILES SILVERBERG ON THE T. V. SHOW QUOTE MURPHY BROWN QUOTE WOULD SEEM TO BE A MODEL CUSTOMER HE TALKS ALMOST CONSTANTLY ON HIS CAR PHONE WHILE DRIVING FROM ONE APPOINTMENT TO ANOTHER USING STALLED TIME IN TRAFFIC JAMS TO RETURN CALLS AND CATCH UP ON OTHER BUSINESS PART OF HIS NIGHTLY RITUAL IS CLEANING OUT THE CRUMPLED PINK MESSAGE SLIPS THAT ACCUMULATE ON THE FLOOR THROUGHOUT THE DAY A CELLULAR DEVOTEE FOR NEARLY A DECADE MR. NEVINS SAYS HE WOULDN'T EVEN THINK OF BOARDING A TRAIN OR HEADING ONTO THE GOLF COURSE WITHOUT HIS PORTABLE IN HAND I CAN'T BE OUT OF CONTACT WITH MY OFFICE FOR FOUR OR FIVE HOURS MR. NEVINS EXPLAINS DURING A PHONE INTERVIEW FROM WHERE ELSE HIS CAR IF I DIDN'T HAVE TO WORRY ABOUT COST I'D USE IT FAR MORE FREQUENTLY THAN I DO NOW FOR THE LOCAL PHONE COMPANY THERE'S JUST ONE CATCH IT ISN'T CASHING IN ON MR. NEVINS'S CELLULAR HABIT A RIVAL IS THE LOCAL COMPANY IS BELL ATLANTIC CORPORATION OF PHILADELPHIA WHICH HAS A VIRTUAL MONOPOLY ON THE OLD FASHIONED WIRED PHONE NETWORK THAT SERVES THE MID ATLANTIC REGION BUT MR. NEVINS BUYS HIS CELLULAR SERVICES FROM CELLULAR ONE WHICH IS OWNED BY A RIVAL BABY BELL SOUTHWESTERN BELL CORPORATION OF SAN ANTONIO LITTLE WONDER THEN THAT THE SEVEN REGIONAL BELL COMPANIES LOOK AT THE WIRELESS REVOLUTION WITH A MIXTURE OF DREAD AND EXCITEMENT SPUN OFF FROM THE OLD A. T. AND T. EMPIRE A DECADE AGO THE BABY BELLS ARE SOME OF THE MOST WIRED UP COMPANIES IN THE WORLD DERIVING MORE THAN NINETY PERCENT OF THEIR PROFITS FROM WIRED TELEPHONE SERVICE ANY BREAKTHROUGHS IN THE UNTETHERED AND UNFETTERED FUTURE OF WIRELESS TECHNOLOGY WOULD SEEM TO THREATEN THEM MOST THE BABY BELLS AFTER ALL DON'T GET PAID WHEN CUSTOMERS SIMPLY SIDESTEP THEIR WIRED NETWORKS AT SOME POINT IT WILL GET MORE COST EFFICIENT FOR CUSTOMERS TO USE WIRELESS SERVICES SAYS ROBERT BARADA VICE PRESIDENT OF CORPORATE STRATEGY FOR PACIFIC TELESIS GROUP THE SAN FRANCISCO BASED BABY BELL THAT SERVES CALIFORNIA AND NEVADA CLEARLY THAT'S WHEN WIRELESS WILL START TO EAT INTO THE WIRE LINE MARKET SO THE BABY BELLS FACE A HOBSON'S CHOICE THEY CAN SIT IDLY BY AND LET THE WIRELESS FUTURE SOMEDAY RENDER THEIR NETWORKS ALL BUT OBSOLETE OR THEY CAN DIVE INTO THE WIRELESS FRAY AND PERHAPS HELP ACCELERATE THE ARRIVAL OF THAT SAME SCENARIO AND THAT'S WHERE THE PROMISE OF WIRELESS COMES IN FOR THE BABY BELLS FOR THE MOST PART THEY ARE CHOOSING THE LATTER ROUTE OFFERING CELLULAR PHONE SERVICE INVESTING IN FOREIGN CELLULAR MARKETS AND STARTING UP WIRELESS DATA SERVICES THEY ALSO ARE TAKING ON A NEW KIND OF WIRE BASED PARTNER CABLE T. V. COMPANIES IN THE HOPE OF KEEPING THEIR LAND LINES HUMMING WITH ALL MANNER OF NEW INTERACTIVE SERVICES THEY MUST CHASE THE WIRELESS FUTURE WITH NO SMALL AMOUNT OF URGENCY UNTIL NOW CUSTOMERS HAVE HAD THEIR CHOICE OF JUST TWO COMPANIES FOR CELLULAR PHONE SERVICE IN ANY GIVEN MARKET TYPICALLY THE HOMETOWN BABY BELL AND A COMPETITOR ABOUT HALF OF THE NATION'S FOURTEEN MILLION WIRELESS CUSTOMERS CURRENTLY BUY CELLULAR SERVICES FROM THE CELLULAR BUSINESSES OWNED BY THEIR LOCAL BELL COMPANIES THIS SPRING FEDERAL REGULATORS WILL BEGIN DOLING OUT THOUSANDS OF LICENSES UP TO SEVEN IN EACH MARKET FOR ACCESS TO THE PARTS OF THE ELECTROMAGNETIC SPECTRUM THAT WILL HOUSE THE NEXT GENERATION OF CELLULAR TECHNOLOGY PERSONAL COMMUNICATIONS SERVICES TO HEAR PROPONENTS TELL IT P. C. S. WILL BE A LOT CHEAPER AND MORE CUSTOMER FRIENDLY THAN TODAY'S CELLULAR SERVICE AND HAVE A LOT MORE FEATURES THOUGH THE BABY BELLS ARE AMONG DOZENS OF COMPANIES PLANNING TO BID FOR P. C. S. LICENSES REGULATORS WILL EXCLUDE THEM FROM BIDDING FOR SOME PRIME LICENSES BECAUSE OF THEIR ALREADY SIZABLE PRESENCE IN CELLULAR PHONE SERVICE THE BELLS PLAN TO RETROFIT AND UPGRADE THEIR EXISTING NETWORKS TO BE ABLE TO MATCH THE ENHANCED SERVICES OF P. C. S. COMPETITORS P. C. S. OFFERS ANOTHER THREAT AS WELL TRADITIONAL CELLULAR SERVICE OFTEN ENDS UP ROUTING A CALL ONTO THE WIRELINE OF A BABY BELL AND HENCE OFFERS AT LEAST A LITTLE REVENUE TO THE PHONE COMPANY P. C. S. NETWORKS MAY ONE DAY LET ONE POCKET COMMUNICATOR ZAP A CALL DIRECTLY TO ANOTHER WITHOUT EVER HAVING TO JUMP ONTO A BABY BELL'S LINE THAT WOULD AVOID THE PAYMENT OF ANY ACCESS FEES TO THE PHONE COMPANY THE P. C. S. THREAT IS QUOTE THE BIG ONE QUOTE SAYS ANALYST MARION BOUCHER OF DONALDSON LUFKIN AND JENRETTE IN NEW YORK IT'S THE FORM OF COMMUNICATION THAT COULD MAKE THE EXISTING LAND LOCKED NETWORK OBSOLETE EVEN REGULAR CELLULAR SERVICE POSES A THREAT TO THE BABY BELLS LETTING LONG DISTANCE CALLS BYPASS THEIR LOCAL NETWORKS AT RISK IS THE TWENTY BILLION DOLLARS IN ANNUAL FEES THE SEVEN REGIONAL BELLS CURRENTLY RECEIVE FROM LONG DISTANCE PROVIDERS FOR ROUTING CALLS TO THEIR LOCAL CUSTOMERS THAT REPRESENTS A HEFTY TWENTY FIVE PERCENT OF THE BABY BELLS' ANNUAL REVENUES CELLULAR SYSTEMS IN PARTICULAR THOSE OWNED BY AMERICAN TELEPHONE AND TELEGRAPH COMPANY THROUGH ITS PLANNED TWELVE POINT SIX BILLION DOLLAR ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INCORPORATED COULD LET A LONG DISTANCE PROVIDER AVOID PAYING SUCH ACCESS FEES EVERY TIME SOMEBODY MAKES A LONG DISTANCE CALL WITHOUT USING THE BELLS THEY LOSE SAYS JEFFREY MILLER A PARTNER AT ANDERSEN CONSULTING INCORPORATED IN NEW YORK PACIFIC TELESIS WAS SO WORRIED ABOUT THE WIRELESS FUTURE THAT IT DECIDED LAST YEAR TO TAKE THE UNUSUAL STEP OF SPINNING OFF ITS CELLULAR OPERATIONS INTO A SEPARATE COMPANY THAT NEW CELLULAR UNIT WILL BE ABLE TO COMPETE MORE AGGRESSIVELY UNSHACKLED FROM REGULATORY RESTRICTIONS THE SPINOFF IS EXPECTED TO BE COMPLETED THIS SPRING OTHER BELLS HAVE TAKEN LESS DRASTIC STEPS SOUTHWESTERN BELL STARTED GIRDING FOR THE WIRELESS WAR EARLY SNAPPING UP CELLULAR PROPERTIES IN NINETEEN EIGHTY SEVEN AND PAYING WHAT SEEMED LIKE A RIDICULOUSLY HIGH PRICE FIFTY DOLLARS PER POTENTIAL SUBSCRIBER IN THE WASHINGTON D. C. BALTIMORE AND CHICAGO MARKETS WALL STREET LAUGHED AT THEM AT THE TIME RECALLS STEVEN R. YANIS A TELECOMMUNICATIONS ANALYST WITH KIDDER PEABODY AND COMPANY IN NEW YORK WALL STREET ISN'T LAUGHING ANYMORE TODAY THOSE SAME PROPERTIES WOULD COST MORE THAN THREE HUNDRED DOLLARS PER POTENTIAL SUBSCRIBER IF THEY WERE FOR SALE WHICH THEY AREN'T AND SOUTHWESTERN BELL IS AT THE TOP OF THE CELLULAR HEAP AMONG THE BELLS PART OF THE COMPANY'S WINNING STRATEGY IS TO PRICE SERVICES LOWER THAN ITS COMPETITORS CUSTOMERS HAVE RESPONDED BY FLOCKING TO THE COMPANY IN RECORD NUMBERS THE BABY BELL ADDED AN EYE POPPING TWO HUNDRED THOUSAND CELLULAR SUBSCRIBERS IN THE FOURTH QUARTER ALONE THAT GAVE SOUTHWESTERN BELL A YEAR END SUBSCRIBER BASE OF MORE THAN TWO MILLION CELLULAR CUSTOMERS THE LARGEST AMONG THE BELLS THE COMPANY ALSO BOASTS THE HIGHEST PENETRATION RATE AMONG THE BELLS FIVE POINT SEVEN PERCENT OF POTENTIAL SUBSCRIBERS COMPARED WITH THE BABY BELL AVERAGE OF THREE POINT EIGHT PERCENT THE CELLULAR UNIT IS ALSO UNBELIEVABLY EFFICIENT REVENUE PER EMPLOYEE A BENCHMARK OF WORKER PRODUCTIVITY IS ALMOST DOUBLE THE CELLULAR INDUSTRY AVERAGE AT FOUR HUNDRED FIVE THOUSAND DOLLARS SIMILARLY THE NUMBER OF SUBSCRIBERS PER EMPLOYEE IS SIX HUNDRED AT SOUTHWESTERN BELL THE INDUSTRY AVERAGE IS HALF THAT SOUTHWESTERN BELL IS CLEARLY THE BEST OPERATOR MR. YANIS SAYS PACIFIC TELESIS WAS ANOTHER EARLY BELIEVER IN CELLULAR TODAY IT HAS MORE THAN ONE MILLION SUBSCRIBERS THE PLANNED SPINOFF WILL FREE UP THE WIRELINE TELEPHONE COMPANY TO GO AFTER THE CHOICEST P. C. S. LICENSES THIS SPRING IT WILL ALSO PUT THE BABY BELL IN THE UNUSUAL POSITION OF COMPETING AGAINST ITS FORMER SIBLING FOR WIRELESS CUSTOMERS PACTEL'S DOMESTIC OPERATIONS ARE BOLSTERED BY A STRONG INTERNATIONAL PRESENCE INCLUDING A LUCRATIVE VENTURE IN GERMANY THAT CONTINUES TO EXCEED WALL STREET'S EXPECTATIONS ATLANTA BASED BELLSOUTH CORPORATION ALSO GETS KUDOS FOR ITS CELLULAR OPERATIONS WHICH CLAIM OVER ONE POINT FIVE MILLION CUSTOMERS MORE THAN HALF OF THE COMPANY'S POTENTIAL SUBSCRIBERS ARE LOCATED OVERSEAS THE BABY BELL'S CELLULAR OPERATIONS ARE PARTICULARLY STRONG IN LATIN AMERICA WHERE THE BASIC LAND LINE INFRASTRUCTURE IS SO BAD THAT MANY PEOPLE USE CELLULAR AS THEIR PRIMARY FORM OF COMMUNICATIONS BELLSOUTH ALSO HAS A NATIONWIDE PAGING SYSTEM AND A MAJOR STAKE IN A WIRELESS DATA SERVICE OUTSIDE ITS HOME TERRITORY BELL ATLANTIC GOT INTO THE CELLULAR GAME FAIRLY LATE ANNOUNCING ITS ARRIVAL IN NINETEEN NINETY TWO WITH THE PURCHASE OF METRO MOBILE C. T. S. INCORPORATED ONE OF THE LARGEST NON BELL INDEPENDENT CELLULAR COMPANIES IN THE NATION THE ACQUISITION EXTENDED BELL ATLANTIC'S CELLULAR REACH INTO THE BACKYARDS OF ITS FORMER SIBLINGS IN THE NORTHEAST SOUTHEAST AND SOUTHWEST BELL ATLANTIC TODAY CLAIMS ABOUT ONE MILLION SUBSCRIBERS THE CELLULAR UNIT CONTINUES TO AGGRESSIVELY ROLL OUT NEW SERVICES A HALLMARK OF SOUTHWESTERN BELL AS WELL BOTH COMPANIES OFFER A ONE PERSON ONE NUMBER SERVICE THAT ALLOWS CUSTOMERS TO GET QUOTE FOLLOW ME QUOTE CALLING FROM THE OFFICE TO THE CAR AND HOME AMERITECH CORPORATION CHICAGO U. S. WEST INCORPORATED DENVER AND NYNEX CORPORATION WHITE PLAINS N. Y. ARE CONSIDERED THE LEAST AGGRESSIVE CELLULAR PERFORMERS AMONG THE BELLS THE COMPANIES HAVE DONE LITTLE TO BUILD ON THEIR CELLULAR FRANCHISES OVER THE YEARS PERHAPS LEAVING THEM THE WORST PREPARED FOR THE COMING SHOWDOWN WITH NEW WIRELESS COMPETITORS AMERITECH HAS EIGHT HUNDRED SIXTY THOUSAND SUBSCRIBERS FOLLOWED BY U. S. WEST WITH SIX HUNDRED ONE THOUSAND SUBSCRIBERS DEAD LAST WITH FIVE HUNDRED SEVENTY FIVE THOUSAND SUBSCRIBERS IS NYNEX WHICH HAS BEEN SIGNIFICANTLY UPGRADING ITS NETWORK AND INTRODUCING A RAFT OF NEW SERVICES IN AN EFFORT TO LURE NEW CUSTOMERS MARKETING PLANS STRATEGIC ALLIANCES AND OVERSEAS INVESTMENTS MATTER LITTLE OF COURSE TO CUSTOMERS LIKE MR. NEVINS OF BALTIMORE LIKE ANY CONSUMER HIS PRIMARY CONCERN IS GETTING THE BEST DEAL IN TOWN FROM WHOEVER HAPPENS TO BE OFFERING IT I'M GOING TO GO WITH WHATEVER COMPANY OFFERS THE BEST SERVICE FOLLOWED BY THE BEST PRICE MR. NEVINS SAYS IT DOESN'T MATTER TO ME IF THAT HAPPENS TO BE BELL ATLANTIC OR SOMEBODY ELSE MS. CAULEY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU A VIGOROUS STOCK MARKET RALLY WITHERED AMID FALLING BOND PRICES AND A PLUNGING DOLLAR BUT SHARE PRICES STILL FINISHED HIGHER THE DOW JONES INDUSTRIAL AVERAGE ROSE NINE POINT TWO EIGHT POINTS TO THREE THOUSAND NINE HUNDRED FOUR POINT OH SIX STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX EDGED UP ZERO POINT ZERO FIVE TO FOUR HUNDRED SEVENTY POINT TWO THREE AND THE NASDAQ COMPOSITE INDEX ROSE FOUR POINT OH SIX TO SEVEN HUNDRED EIGHTY FIVE POINT FOUR FIVE THE DOW INDUSTRIALS SHOT UP MORE THAN TWENTY FIVE POINTS BEFORE TRADE FRICTIONS BETWEEN THE U. S. AND JAPAN ROILED THE MARKET EARLY IN THE SESSION STOCK MARKET INVESTORS IGNORED THE SINKING DOLLAR AND FOCUSED INSTEAD ON THE MOSTLY BENIGN INFLATION REPORT RELEASED FRIDAY A STABLE BOND MARKET FOR PART OF YESTERDAY ALSO HELPED PROP UP STOCK PRICES BUT CONCERNS THEN TURNED TO THE POTENTIAL FALLOUT FROM THE U. S. JAPAN TRADE CONFLICT BOND INVESTORS WORRIED THAT A WEAK DOLLAR WILL IGNITE INFLATION AND PROMPT JAPANESE INVESTORS TO SELL THEIR U. S. BONDS THAT DROVE BOND PRICES LOWER AND CARRIED STOCK PRICES RIGHT ALONG ANALYSTS SAID COMPUTER GUIDED PROGRAMS WERE RESPONSIBLE BOTH FOR THE STOCK MARKET'S EARLY ADVANCE AND ITS LATER DECLINE JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ WASN'T SURPRISED BY THE STOCK MARKET'S ABOUT FACE FAR MORE SURPRISING TO HIM WAS THAT STOCK PRICES RALLIED AT ALL HE ARGUED THAT THE RECENT RISE IN INTEREST RATES HAS INITIATED A CORRECTION THAT WILL TAKE THE DOW INDUSTRIALS DOWN FIFTEEN PERCENT FROM THEIR HIGH QUOTE THE KEY IS WE'RE IN A CORRECTION PHASE AND YOU'LL SEE A LOT OF ZIGZAGS HEAD FAKES AND FALSE RALLIES QUOTE MR. MCALINDEN SAID THE TREND OVERALL WILL BE A SLOW WATER TORTURE KIND OF DECLINE ECONOMICALLY SENSITIVE STOCKS WHICH HAVE LED THE MARKET CAME UNDER HEAVY SELLING PRESSURE PRECIOUS METALS STOCKS HOWEVER ROSE AS GOLD FOR APRIL DELIVERY CLIMBED THREE DOLLARS AND NINETY CENTS TO THREE HUNDRED EIGHTY FIVE DOLLARS AND SIXTY CENTS AN OUNCE THE ONLY ECONOMIC NEWS CAME FROM THE COMMERCE DEPARTMENT WHICH SAID DECEMBER BUSINESS INVENTORIES WERE UNCHANGED IN LINE WITH ANALYSTS' EXPECTATIONS WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ZERO POINT NINE ZERO TO ONE HUNDRED SIXTEEN POINT NINE TWO STOCK PRICES ROSE VOLUME TOTALED TWO HUNDRED SIXTY THREE POINT ONE MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED THIRTY FOUR ISSUES ROSE AND ONE THOUSAND TWENTY NINE FELL BOND PRICES FELL THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE LOST MORE THAN ONE HALF POINT OR MORE THAN FIVE DOLLARS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT FOUR FIVE PERCENT THE DOLLAR TUMBLED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN TWO SEVEN THREE MARKS AND ONE HUNDRED TWO POINT SIX FIVE YEN COMPARED WITH ONE POINT SEVEN FIVE FOUR THREE MARKS AND ONE HUNDRED SIX POINT EIGHT FIVE YEN FRIDAY MARK SOLUTIONS INCORPORATED SAID IT SIGNED A LETTER OF INTENT TO PURCHASE BILT RITE STEEL BUCK CORPORATION FINANCIAL TERMS WEREN'T DISCLOSED IN A NEWS RELEASE MARK SOLUTIONS SAID BILT RITE IN WESTBURY N. Y. IS A MAKER OF HOLLOW METAL PRODUCTS IT OPERATES FOUR PLANTS THAT PRODUCE METAL DOOR AND FRAME PRODUCTS THE COMPANY SAID BILT RITE CURRENTLY HAS ANNUAL SALES OF ABOUT TWENTY TWO MILLION DOLLARS M. L. MIKE SKOLNICK FIFTY THREE YEARS OLD WAS APPOINTED EXECUTIVE VICE PRESIDENT OF THE ROCKETDYNE DIVISION A NEW POSITION AT THE CANOGA PARK CALIFORNIA UNIT HE PREVIOUSLY WAS VICE PRESIDENT OF ADVANCED PROGRAMS AT THE PARENT'S SYSTEM DEVELOPMENT CENTER ROCKWELL IS A DIVERSIFIED HIGH TECHNOLOGY CONCERN WITH INTERESTS IN THE ELECTRONICS AEROSPACE AUTOMOTIVE AND GRAPHICS BUSINESSES ODETICS INCORPORATED RECEIVED A NINE POINT SIX MILLION DOLLAR SUBCONTRACT FROM MARTIN MARIETTA CORPORATION FOR SPACE DATA RECORDERS FOR THE LANDSAT SEVEN PROGRAM ODETICS SAID LANDSAT SEVEN WHICH IS MANUFACTURED BY MARTIN MARIETTA IS AN EARTH RESOURCE OBSERVATION PROGRAM THAT COLLECTS INFORMATION ABOUT THE EARTH FROM SPACE IN A NEWS RELEASE THE COMPANY SAID THE LANDSAT SEVEN PROGRAM IS FUNDED JOINTLY BY THE DEPARTMENT OF DEFENSE AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION ODETICS SAID ITS INFORMATION STORAGE DIVISION FORMERLY SPACE DIVISION WILL PROVIDE MARTIN MARIETTA WITH THREE SPACEDATA RECORDERS BY MID NINETEEN NINETY SIX THE COMPANY SAID THE RECORDERS WILL BE ON BOARD THE LANDSAT SEVEN SPACECRAFT AND WILL STORE EARTH RESOURCE INFORMATION WHEN DATA LINKS ARE UNABLE TO COMMUNICATE DIRECTLY WITH GROUND RECEIVING STATIONS TRICONEX CORPORATION ACQUIRED PREMIER ENGINEERING INCORPORATED A BATON ROUGE LOUISIANA BASED ENGINEERING COMPANY FOR ONE POINT NINE MILLION DOLLARS IN A STATEMENT THE INDUSTRIAL SAFETY AND CONTROL SYSTEMS COMPANY SAID PREMIER SPECIALIZES IN IMPLEMENTING SAFETY CRITICAL SYSTEMS FOR THE PETROCHEMICAL INDUSTRY TWO NEW DIRECTORS WERE NAMED BY THIS ENERGY COMPANY RAISING THE BOARD'S SIZE TO EIGHT MEMBERS THE NEW DIRECTORS ARE JAMES R. PAUL RETIRED FORMER PRESIDENT AND CHIEF EXEUCTIVE OF COASTAL CORPORATION AND JAMES T. RODGERS RETIRED FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF ANADARKO PETROLEUM CORPORATION ONTARIO HYDRO SAID IT PLANS TO CUT GENERATING CAPACITY BY EIGHT POINT FOUR PERCENT TO REDUCE ITS ELECTRICITY SURPLUS AND LOWER COSTS THE STATE OWNED UTILITY SAID IT EXPECTS TO CUT TWO HUNDRED MILLION CANADIAN DOLLARS ONE HUNDRED FORTY SEVEN POINT EIGHT MILLION U. S. DOLLARS FROM ITS OPERATING COSTS OVER THE NEXT TEN YEARS BY SHUTTING DOWN PARTS OF THREE GENERATING STATIONS TWO OF THE FOUR UNITS AT THE LENNOX OIL FIRED GENERATING STATION NEAR KINGSTON ONTARIO WILL CLOSE AS WELL AS TWO OF FOUR UNITS AT THE LAMBTON GENERATING STATION NEAR SARNIA ONTARIO IN ADDITION THE UTILITY PLANS TO MOTHBALL ONE OF EIGHT UNITS AT ITS BRUCE NUCLEAR GENERATING FACILITY NEAR OWEN SOUND ONTARIO BY SEPTEMBER NINETEEN NINETY FIVE TWO YEARS AHEAD OF SCHEDULE THE CLOSURES WILL REMOVE TWO THOUSAND SEVEN HUNDRED MEGAWATTS OF CAPACITY FROM ONTARIO HYDRO'S TOTAL INSTALLED CAPACITY OF THIRTY TWO THOUSAND TWO HUNDRED THIRTY ONE MEGAWATTS A SPOKESMAN FOR THE UTILITY SAID TOTAL SURPLUS CAPACITY IS ESTIMATED AT BETWEEN THREE THOUSAND AND FIVE THOUSAND MEGAWATTS OVER AND ABOVE THE TWENTY TWO PERCENT MARGIN ALREADY ALLOWED ABOVE DAILY PEAK REQUIREMENTS MAURICE STRONG CHAIRMAN OF THE UTILITY SAID THE CUTS WERE MADE NECESSARY BY A DROP IN ELECTRICITY SALES OVER THE PAST FOUR YEARS IN ONTARIO WHICH HAS BEEN HARD HIT BY THE RECESSION EVEN IF DEMAND INCREASES BEYOND CURRENT EXPECTATIONS HE SAID THERE WILL BE QUOTE MORE THAN ADEQUATE CAPACITY QUOTE AVAILABLE THE CONSEQUENCES OF NOT TAKING ACTION AT THIS TIME WOULD PLACE UNACCEPTABLE BURDENS ON THE CORPORATION'S FINANCIAL CONDITIONS AND ITS RATES MR. STRONG SAID HYDRO WHICH FROZE ITS RATES THIS YEAR AFTER THREE SUCCESSIVE YEARS OF LARGE INCREASES NOW PLANS TO SEEK A ONE POINT FOUR PERCENT RATE INCREASE FOR NINETEEN NINETY FIVE IN LINE WITH THE UTILITY'S INFLATION EXPECTATIONS THE COSTS ASSOCIATED WITH THE CLOSURE WILL BRING HYDRO'S FINAL LOSS FOR NINETEEN NINETY THREE TO THREE POINT FIVE BILLION CANADIAN DOLLARS THE UPPER END OF A PREVIOUS FORECAST ELEANOR CLITHEROE THE UTILITY'S CHIEF FINANCIAL OFFICER SAID PREVIOUSLY THAT BEFORE THE IMPACT OF ONE TIME RESTRUCTURING CHARGES AND ASSET WRITE OFFS HYDRO RECORDED A SMALL OPERATING PROFIT FOR THE YEAR SHE SAID THE UTILITY EXPECTS TO REPORT A PROFIT OF SIX HUNDRED MILLION CANADIAN DOLLARS IN NINETEEN NINETY FOUR HUFFY CORPORATION REPORTED A LOSS IN THE FOURTH QUARTER AND RECORDED A TWENTY POINT THREE MILLION DOLLAR CHARGE TO CUT TWO HUNDRED JOBS AND RESTRUCTURE OPERATIONS AT ITS TRUE TEMPER HARDWARE COMPANY UNIT FOR THE QUARTER THE MAKER OF BICYCLES BASKETBALL BACKBOARDS AND LAWN AND GARDEN TOOLS REPORTED A LOSS OF SEVENTEEN POINT NINE MILLION DOLLARS OR ONE DOLLAR AND TWENTY SIX CENTS A SHARE COMPARED WITH A LOSS OF THREE HUNDRED TWENTY ONE THOUSAND DOLLARS OR TWO CENTS A SHARE IN THE YEAR EARLIER PERIOD REVENUE DECLINED SEVENTEEN PERCENT TO ONE HUNDRED FIFTY FIVE POINT FIVE MILLION DOLLARS FROM ONE HUNDRED EIGHTY SIX POINT SEVEN MILLION DOLLARS WITHOUT THE CHARGES THE COMPANY SAID NINETEEN NINETY THREE FOURTH QUARTER EARNINGS WOULD HAVE BEEN TWO POINT FOUR MILLION DOLLARS OR SEVENTEEN CENTS A SHARE THE COMPANY ATTRIBUTED DECLINING SALES TO THE ELIMINATION OF TRADITIONAL YEAR END ORDERING INCENTIVES AND EMPHASIS ON JUST IN TIME ORDERS WHICH IS CONTRIBUTING TO A SLOW START FOR NINETEEN NINETY FOUR HUFFY SAID OPERATING PROFITS IMPROVED DUE TO BETTER MARGINS AT THE COMPANY'S RECREATION AND LEISURE TIME PRODUCTS GROUP WHICH INCLUDES THE COMPANY'S BICYCLES AND BASKETBALL BACKBOARDS SEGMENTS IN RESTRUCTURING ITS TRUE TEMPER UNIT HUFFY TOOK A FOURTEEN POINT THREE MILLION DOLLAR CHARGE TO WRITE DOWN ASSETS AND GOODWILL AND A SIX MILLION DOLLAR CHARGE TO CUT JOBS AND ELIMINATE UNPROFITABLE AND MARGINALLY PROFITABLE PRODUCT LINES SUCH AS PRUNING TOOLS AND SPREADERS A SPOKESWOMAN SAID MOST OF THE JOB REDUCTIONS WOULD COME FROM THE CLOSURE OF ITS ANDERSON S. C. PLANT HUFFY WITH ABOUT SIX THOUSAND FOUR HUNDRED EMPLOYEES WORLD WIDE SAID IT WILL REDUCE THE NUMBER OF EMPLOYEES AT TRUE TEMPER TO SIX HUNDRED FROM ABOUT EIGHT HUNDRED THE COMPANY ADDED THAT IT EXPECTS IMPROVED EFFICIENCY AND SAVINGS WILL PAY FOR THE RESTRUCTURING CHARGES BY THE END OF NINETEEN NINETY FIVE FOR THE YEAR HUFFY REPORTED A NET LOSS OF FOUR POINT NINE MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE COMPARED WITH NET INCOME OF FOUR POINT TWO MILLION DOLLARS OR THIRTY THREE CENTS A SHARE IN NINETEEN NINETY TWO REVENUE INCREASED EIGHT PERCENT TO SEVEN HUNDRED FIFTY SEVEN POINT NINE MILLION DOLLARS FROM SEVEN HUNDRED THREE POINT THREE MILLION DOLLARS IN NINETEEN NINETY TWO IN NEW YORK STOCK EXCHANGE TRADING HUFFY FINISHED DOWN TWELVE POINT FIVE CENTS AT NINETEEN DOLLARS THE EFFORTS OF TWO ENTREPRENEURS TO SELL TAX SHELTERED ANNUITY LIKE PRODUCTS THROUGH A SMALL INDIAN OWNED BANK IN MONTANA ARE LIKELY TO RUN INTO HEAVY CRITICISM FROM BANK REGULATORS AS WELL AS A BLIZZARD OF LITIGATION FROM THE INSURANCE INDUSTRY BLACKFEET NATIONAL BANK OF BROWNING MONTANA HOPES TO SELL FEDERALLY INSURED CERTIFICATES OF DEPOSIT THAT WOULD ALLOW CUSTOMERS TO ACCUMULATE INTEREST ON A TAX FREE BASIS UNTIL THE MONEY IS WITHDRAWN THE PRODUCT WHICH WILL BE PROMOTED IN A NATIONWIDE MARKETING EFFORT BEGINNING TODAY WOULD COMPETE DIRECTLY WITH THE INSURANCE INDUSTRY'S FORTY BILLION DOLLARS OF ANNUAL ANNUITY SALES THE TWO ENTREPRENEURS WHO PERSUADED THE BANK TO OFFER THE PRODUCT RICK FASOLD A DENVER BANKING CONSULTANT AND DENNIS M. GINGOLD A WASHINGTON LAWYER CLAIM THAT THEY HAVE FOUND A LOOPHOLE IN REGULATIONS THAT HAVE HERETOFORE RESTRICTED BANKS FROM OFFERING ANNUITIES MR. FASOLD SAID QUOTE WHAT WE ARE OFFERING IS A C. D. FOR BANKING LAW PURPOSES AND AN ANNUITY FOR TAX LAW PURPOSES QUOTE BUT REGULATORS HAVEN'T APPROVED ANY SUCH OFFERING AND SAY THEY STILL HAVE PLENTY OF QUESTIONS ABOUT THE PROPOSED PRODUCTS THEY CAME IN WITH AN IDEA AND WE SAID THAT LOOKS INTERESTING BUT THAT WE HAD SOME QUESTIONS SAID LEONORA CROSS THE U. S. DEPUTY COMPTROLLER OF THE CURRENCY THEY THEN SAID WE AREN'T ASKING FOR A LEGAL OPINION ALTHOUGH MR. GINGOLD WAS QUOTED AS SAYING THAT THE OFFICE OF THE COMPTROLLER OF THE CURRRENCY TOLD HIM THE ACCOUNT WOULD BE COVERED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION MS. CROSS STATED I CAN SAY WITH ABSOLUTE CERTAINTY THAT WE DIDN'T TELL THEM THAT THEY WOULD BE INSURED BY THE F. D. I. C. ONLY THE F. D. I. C. CAN DO THAT MS. CROSS SAID THE COMPTROLLER'S OFFICE LAST NIGHT ADVISED THE BANK NOT TO GO AHEAD WITH PLANS TO INTRODUCE THE PRODUCT WE ARE NOTIFYING THE BANK TO LET THEM KNOW THAT WE THINK THEY MIGHT BE WORKING UNDER INCORRECT INFORMATION WE HAVE A LOT OF QUESTIONS PARTICULARLY CONCERNING THE FINANCIAL AND LEGAL RISK TO THE BANK ITSELF WE THINK IT IS IN THE BEST INTEREST OF THE BANK TO HOLD OFF ON DOING ANYTHING QUOTE A SPOKESMAN FOR THE F. D. I. C. SAID NEITHER MR. GINGOLD NOR MR. FASOLD APPROACHED THE AGENCY AND THAT IT WOULD WORK WITH THE COMPTROLLER'S OFFICE TO LOOK INTO THE MATTER ALTHOUGH MR. GINGOLD HAS BEEN QUOTED SAYING HE HAD A LETTER FROM THE INTERNAL REVENUE SERVICE CONFIRMING THAT TAXES ON THE INTEREST EARNED BY THE ACCOUNTS WOULD BE DEFERRED UNTIL THE FUNDS WERE WITHDRAWN MR. FASOLD SAID YESTERDAY THAT HIS PARTNER DIDN'T ACTUALLY HAVE A LETTER BUT THAT HE HAD A LEGAL OPINION SUPPORTING HIS POSITION SEVERAL BANKING ATTORNEYS WERE EXTREMELY SKEPTICAL AS TO THE BANK'S ABILITY TO OFFER ITS PRODUCT IT'S VERY HARD TO BELIEVE THAT A LOOPHOLE AS BIG AS THIS REALLY EXISTS SAID LEE MYERSON OF SIMPSON THATCHER AND BARTLETT IN NEW YORK A WASHINGTON LAWYER WHO SPECIALIZES IN BANK REGULATION SAID OF BLACKFEET NATIONAL'S PLANS I THINK THERE IS A LOT MORE PROMOTION TO THIS THAN THERE IS SUBSTANCE I AM NOT SURE THEY REALLY HAVE A PRODUCT ANOTHER ATTORNEY SAID THAT MESSRS FASOLD AND GINGOLD HAD ASKED A NUMBER OF BANKS TO OFFER THEIR PRODUCT BUT WERE TURNED DOWN BECAUSE OF THE INEVITABLE LEGAL BATTLES MR. FASOLD ACKNOWLEDGED THAT HE AND HIS PARTNER HAVE AGREED TO ASSUME A PORTION OF BLACKFEET'S LEGAL COSTS THERE IS A RISK THAT SOMEONE MIGHT SUE BUT THE CHANCES THAT THEY MIGHT PREVAIL ARE VERY LOW MR. FASOLD ASSERTED HE ALSO SUGGESTED INSURERS MAY BE UNWILLING TO SUE A BANK THAT IS OWNED BY AMERICAN INDIANS IF THEY WANT TO JUMP ALL OVER A TWELVE MILLION DOLLAR MINORITY OWNED BANK THAT'S UP TO THEM THE INSURANCE INDUSTRY HOWEVER SEEMS UNDETERRED QUOTE WE CONSIDER THE BANK'S ACTION TO BE AN ATTEMPTED END RUN AROUND CURRENT BANKING AND INSURANCE LAWS QUOTE SAID DICK SCHWEIKER PRESIDENT OF THE AMERICAN COUNCIL OF LIFE INSURANCE IN WASHINGTON WHO ADDED THAT HIS ORGANIZATION WAS QUOTE PREPARED TO EXPLORE ALL LEGAL REMEDIES QUOTE ENDOSONICS CORPORATION SAID THE FOOD AND DRUG ADMINISTRATION GRANTED ITS CARDIOVASCULAR DYNAMICS INCORPORATED UNIT PERMISSION TO MARKET ITS QUOTE BULLETT INFUSION QUOTE CATHETER IN THE U. S. ENDOSONICS SAID ITS CATHETER DELIVERS DRUGS TO PRESELECTED SITES WITHIN THE BODY BETTER THAN SOME OTHER CATHETERS ON THE NASDAQ STOCK MARKET THE COMPANY'S STOCK CLOSED AT SEVEN DOLLARS AND FIFTY CENTS UP SEVENTY FIVE CENTS OR ELEVEN PERCENT MICHAEL S. HESCHEL FIFTY ONE YEARS OLD FORMER GROUP VICE PRESIDENT OF MANAGEMENT INFORMATION SERVICES WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT OF INFORMATION SYSTEMS AND SERVICES AT THIS SUPERMARKET CHAIN HE WILL BE RESPONSIBLE FOR DIRECTING THE COMPANY'S MANAGEMENT INFORMATION SYSTEMS AND COORDINATING LOGISTICS AND RE ENGINEERING PROGRAMS FRENCH THE LANGUAGE OF DIPLOMACY ITALIAN THE LANGUAGE OF TRAGIC OPERA LOVE PORTUGUESE THE LANGUAGE OF AS FAR AS MODERN LANGUAGES GO PORTUGUESE JUST DOESN'T GET ANY RESPECT SO SAYS JEAN PIERRE VAN DETH PRESIDENT OF EXPOLANGUES A PARIS BASED ASSOCIATION THAT ENCOURAGES THE STUDY OF FOREIGN TONGUES BUT IT'S A BUM RAP THAT'S WHY EXPOLANGUES CHOSE TO HIGHLIGHT PORTUGUESE AT ITS NINETEEN NINETY FOUR CONFERENCE LAST WEEK IN PARIS QUOTE IT'S THE LANGUAGE OF TRAVEL ADVENTURE DISCOVERY QUOTE SAYS MR. VAN DETH IN FRENCH HIS PREFERRED TONGUE HE SAYS HE CAN UNDERSTAND PORTUGUESE BUT DOESN'T SPEAK IT PORTUGUESE IS THE WORLD'S EIGHTH MOST SPOKEN LANGUAGE THE NATIVE TONGUE OF ONE HUNDRED EIGHTY THREE MILLION PEOPLE ONLY ABOUT TEN POINT TWO MILLION OF THESE PEOPLE LIVE IN PORTUGAL BUT PORTUGUESE IS THE OFFICIAL LANGUAGE OF BRAZILIANS WHO NUMBER ONE HUNDRED FIFTY FOUR MILLION AS WELL AS THE FOLKS IN MOZAMBIQUE ANGOLA CAPE VERDE GUINEA BISSAU AND SAO TOME E. PRINCIPE THOSE COUNTRIES RECENTLY FORMED THEIR OWN UNION THE COMMUNITY OF PORTUGUESE SPEAKING NATIONS TO INCREASE TIES BETWEEN THEMSELVES AND TO MAKE THEIR VOICES IN PORTUGUESE HEARD ON THE INTERNATIONAL SCENE AMONG EUROPEAN LANGUAGES USED AROUND THE WORLD PORTUGUESE RANKS THIRD BEHIND ENGLISH AND SPANISH SAYS MR. VAN DETH WHO INVITED PORTUGUESE SPEAKING WRITERS AND ROCK MUSICIANS FROM VARIOUS COUNTRIES TO THE EXPOLANGUES CONFERENCE IN PARIS TO SHOWCASE THE LANGUAGE'S FINER POINTS FANS OF PORTUGUESE HAVE ALSO SUCCEEDED IN GETTING LISBON NAMED EUROPE'S CULTURAL CAPITAL OF NINETEEN NINETY FOUR BUT THE LANGUAGE STILL FACES AN UPHILL BATTLE EXCEPT PERHAPS FOR SAMBA AND BOSSA NOVA FEW PORTUGUESE WORDS HAVE WORKED THEIR WAY INTO ENGLISH USAGE YOU WILL FIND PORTUGUESE EXPRESSIONS IN JAPAN BECAUSE WE WERE THE FIRST TO ARRIVE THERE BY SEA SAYS MARIA JOSE RAU OF THE CAMOES PORTUGUESE INSTITUTE IN PARIS SUCH AS WELL MS. RAU COULDN'T REMEMBER ANY OFFHAND EVEN MS. RAU ADMITS PORTUGUESE'S NASAL VOWELS AND SH SOUNDS ARE DIFFICULT FOR NON NATIVE SPEAKERS BUT SPOKEN THE WAY IT IS SAY IN BRAZIL IT CAN BE VERY MELODIOUS IT'S ALMOST SUNG SHE SAYS SO FORGET JAPANESE CHINESE AND ARABIC AND TRY PORTUGUESE MR. VAN DETH URGES QUOTE THIS IS A LANGUAGE OF TODAY A LANGUAGE OF COUNTRIES EMERGING IN IMPORTANCE QUOTE HE SAYS IFINT S. A. THE INTERNATIONAL INVESTMENT ARM OF ITALY'S AGNELLI GROUP SAID IT WILL CHANGE ITS NAME TO THE EXOR GROUP AFTER A SHAREHOLDERS' MEETING IN MARCH THE LUXEMBOURG BASED PORTFOLIO MANAGEMENT COMPANY WHICH OPERATES IN NEW YORK PARIS AND HONG KONG IS AMONG A GROUP OF COMPANIES OWNED BY GIOVANNI AGNELLI CHAIRMAN OF THE AUTO MAKER FIAT COMPANY THE TRANSPORTATION DIVISION OF SIEMENS A. G. THE GERMAN ELECTRONICS GIANT SAID IT WILL BUY THE REMAINING SHARES OF DUEWAG A. G. A STREETCAR AND ELECTRIC TRAIN MAKER SIEMENS WILL OFFER EITHER A YEARLY PAYMENT OF TWENTY TWO POINT OH FIVE MARKS TWELVE DOLLARS AND FIFTY NINE CENTS A SHARE OR A LUMP SUM OF THREE HUNDRED EIGHTY ONE POINT FIVE OH MARKS A SHARE FOR THE REMAINING TWO POINT EIGHT PERCENT OF THE DUEWAG STOCK NOT ALREADY IN SIEMENS CONTROL THE ANNOUNCEMENT SAID BUSINESS STOCKPILES HELD STEADY IN DECEMBER AS COMPANIES CONTINUED TO KEEP A CLOSE EYE ON INVENTORIES DESPITE INCREASING DEMAND THE COMMERCE DEPARTMENT SAID BUSINESS INVENTORIES TOTALED EIGHT HUNDRED SEVENTY FOUR POINT SIX FOUR BILLION DOLLARS IN DECEMBER VIRTUALLY UNCHANGED FROM EIGHT HUNDRED SEVENTY FOUR POINT FIVE FIVE BILLION DOLLARS IN NOVEMBER SALES IN DECEMBER ROSE ZERO POINT EIGHT PERCENT AFTER CLIMBING ONE POINT TWO PERCENT THE MONTH BEFORE THE COMBINATION CAUSED THE INVENTORY TO SALES RATIO THE NUMBER OF MONTHS IT WOULD TAKE TO DEPLETE INVENTORIES AT THE CURRENT SALES PACE TO SLIP TO ONE POINT FOUR THREE FROM ONE POINT FOUR FOUR FOR ALL NINETEEN NINETY THREE INVENTORIES WERE UP THREE POINT OH PERCENT WHILE SALES INCREASED A MORE ROBUST FIVE POINT FOUR PERCENT QUOTE THE WHOLE ECONOMY HAS SIMPLY LEARNED TO OPERATE ON LOWER INVENTORIES QUOTE SAID JOSEPH LIRO CHIEF ECONOMIST OF S. G. WARBURG AND COMPANY SOME INDUSTRIES HAVE MASTERED THE TECHNIQUE BETTER THAN OTHERS FACTORIES HAVE DONE THE BEST JOB MANUFACTURERS' INVENTORIES FELL ZERO POINT SIX PERCENT IN DECEMBER DESPITE A ONE POINT FOUR PERCENT INCREASE IN SALES MERCHANT WHOLESALER INVENTORIES CREPT UP ZERO POINT FOUR PERCENT AND RETAIL INVENTORIES WERE UP ZERO POINT FIVE PERCENT FOR THE MONTH FACTORIES WERE THE ONLY BUSINESS SEGMENT WHOSE INVENTORIES DECLINED FOR THE ENTIRE YEAR DESPITE RISING SALES MR. LIRO SAID THAT THE ONLY THING LIKELY TO REVERSE THE TREND OF LEAN INVENTORIES IS HIGH INFLATION THEN BUSINESSES MAY BUY EXTRA MERCHANDISE TO AVOID PAYING A LOT MORE FOR IT LATER RIGHT NOW WITH INFLATION EXTREMELY WELL BEHAVED THAT DOESN'T SEEM LIKE A LIKELY SCENARIO SEPARATELY IN ITS QUARTERLY FORECAST THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS ESTIMATED THAT THE ECONOMY WILL GROW TWO POINT NINE PERCENT IN NINETEEN NINETY FOUR FOURTH QUARTER OVER FOURTH QUARTER AND TWO POINT SEVEN PERCENT IN NINETEEN NINETY FIVE THAT'S IN LINE WITH SEPARATE FORECASTS MADE BY THE CLINTON ADMINISTRATION THE CONGRESSIONAL BUDGET OFFICE AND THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER THE NABE ALSO FORECAST THAT INFLATION ON THE SAME BASIS WILL RUN AT A THREE POINT ONE PERCENT RATE IN NINETEEN NINETY FOUR AND THREE POINT FOUR PERCENT IN NINETEEN NINETY FIVE THE NINETEEN NINETY FIVE FORECAST FOR INFLATION IS SLIGHTLY HIGHER THAN OTHER ESTIMATES BUT IS STILL MODERATE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN DECEMBER THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED INVESTORS HUNGRY FOR PAPER ARE READY TO SNAP UP THE REPUBLIC OF COLOMBIA'S FIRST YANKEE BOND OFFERING WHICH IS SET TO BE LAUNCHED TODAY IN THE CORPORATE BOND MARKET COLOMBIA IS EXPECTED TO SELL TWO HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR BONDS YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN INVESTORS IN THE U. S. THE BONDS ARE BEING MARKETED WITH A YIELD SPREAD OF ONE POINT FIVE PERCENTAGE POINTS OVER COMPARABLE TREASURYS THROUGH LEAD MANAGER MERRILL LYNCH AND COMPANY THE CORPORATE BOND MARKET WHICH HAS HAD A DEARTH OF NEW ISSUES SEEMS READY AND WILLING TO ABSORB THE DEAL QUOTE THE LACK OF SUPPLY MEANS YOU HAVE TO PLAY QUOTE ONE MUTUAL BOND FUND PORTFOLIO MANAGER SAID MEANWHILE THE PRICE OF THE BENCHMARK THIRTY YEAR TREASURY BOND DROPPED MORE THAN ONE HALF POINT OR MORE THAN FIVE DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY SEVEN AND NINE THIRTY SECONDS PARTLY IN RESPONSE TO JITTERS OVER A POSSIBLE TRADE WAR WITH JAPAN THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO SIX POINT FOUR FIVE PERCENT FROM SIX POINT FOUR OH PERCENT ON FRIDAY INVESTORS SEEM TO BE TURNING TO COLOMBIA'S DEBT AS AN ALTERNATIVE TO SIMILARLY RATED U. S. CORPORATE BONDS BECAUSE IT OFFERS A MUCH HIGHER YIELD THE PAPER IS RATED B. A ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. MINUS BY STANDARD AND POOR'S CORPORATION YOU'RE GETTING FIFTY PERCENT MORE YIELD SPREAD THAN SIMILARLY RATED U. S. CORPORATE BONDS SAID RAY GOODNER A PORTFOLIO MANAGER AT I. D. S. FINANCIAL SERVICES INCORPORATED FOR EXAMPLE BLACK AND DECKER CORPORATION'S SEVEN POINT FIVE PERCENT BONDS MATURING IN TWO THOUSAND THREE WHICH ARE RATED B. A. ONE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. TRADE AT ONE POINT ONE SEVEN PERCENTAGE POINTS OVER TREASURYS COLOMBIA'S DEBT IS LIKELY TO BE PRICED AT A MUCH NARROWER YIELD SPREAD OVER TREASURYS THAN THE GLOBAL BONDS SOLD BY ARGENTINA IN DECEMBER THAT ONE BILLION DOLLAR BOND OFFERING WAS PRICED AT NINETY NINE POINT THREE SIX EIGHT TO YIELD EIGHT POINT FOUR SEVEN FOUR PERCENT OR TWO POINT EIGHT PERCENTAGE POINTS OVER TREASURYS THE BONDS HAVE SINCE TRADED UP TO ONE HUNDRED ONE POINT FIVE FIVE FOR AN EIGHT POINT ONE FOUR PERCENT YIELD OR TWO POINT TWO PERCENTAGE POINTS OVER TREASURYS BECAUSE COLOMBIA IS CONSIDERED MORE STABLE THE YIELD SPREAD ON ITS DEBT ISN'T EXPECTED TO NARROW AS DRAMATICALLY AS DID ARGENTINA'S DEBT COLOMBIA'S DEBT IS BEING PRICED AT A NARROW YIELD SPREAD AND THE DEAL WON'T BE AS LIQUID AS ARGENTINA'S JUMBO DEBT OFFERING ONE TRADER NOTED SOME NARROWING WILL OCCUR ONE TRADER COUNTERED BECAUSE OF THE DEAL'S SCARCITY VALUE COLOMBIA ISN'T EXPECTED TO SELL ADDITIONAL DEBT OVER THE NEXT SIX MONTHS BESIDES INVESTMENT GRADE RATINGS SUCH AS COLOMBIA'S DON'T IMPROVE AS RAPIDLY AS JUNK RATINGS ARGENTINA'S BONDS ARE RATED SINGLE B. ONE BY MOODY'S AND DOUBLE B. MINUS BY S. AND P. WE DON'T EXPECT THE RATING FOR COLOMBIA WILL MOVE IN THE NEAR TERM SAID LACEY GALLAGHER A DIRECTOR AT S. AND P. COLOMBIA IS CONSIDERED ONE OF THE MOST STABLE LATIN AMERICAN COUNTRIES WHAT SEPARATES IT FROM OTHER LATIN AMERICAN COUNTRIES IS THE RELATIVE STABILITY OF ITS FISCAL POLICIES UNDER ECONOMIC AND POLITICAL PRESSURE NOTED MS. GALLAGHER AT S. AND P. IN ADDITION IT WAS THE ONLY MAJOR LATIN AMERICAN COUNTRY THAT DID NOT DEFAULT ON ITS DEBT IN THE NINETEEN EIGHTIES THAT SAYS SOMETHING TO THEIR WILLINGNESS TO SERVICE THEIR DEBT UNDER PRESSURE THEY GET CREDIT FOR THAT SHE ADDED QUOTE HERE IS A COUNTRY WITH A CLEAN DEBT RECORD AND AN IMPRESSIVE HISTORY OF ECONOMIC GROWTH QUOTE SAID RAY GOODNER OF I. D. S. WHO PLANS TO BUY THE PAPER IF IT IS SOLD AT THE YIELD SPREAD WHERE IT IS PRESENTLY BEING MARKETED YESTERDAY DUFF AND PHELPS CREDIT RATING COMPANY GAVE THE ISSUE A PRELIMINARY INVESTMENT GRADE RATING OF TRIPLE B. COLOMBIA'S RECORD AS VIRTUALLY THE ONLY LATIN AMERICAN COUNTRY TO MEET ALL OF ITS SCHEDULED DEBT PAYMENTS THROUGH THE NINETEEN EIGHTIES PROVIDES EVIDENCE OF COLOMBIA'S COMMITMENT TO MAINTAIN AN UNBLEMISHED PAYMENTS RECORD SAID DUFF AND PHELPS YESTERDAY COLOMBIA HAS MAINTAINED STEADY ECONOMIC GROWTH AT THE HIGHEST RATE FOR ANY LATIN AMERICAN COUNTRY SINCE NINETEEN EIGHTY SAID THE RATING CONCERN DUFF AND PHELPS SAID THAT GUERRILLA AND DRUG RELATED VIOLENCE IN COLOMBIA RAISES SOME CONCERNS BUT THESE CONCERNS ARE INCORPORATED INTO THE RATING YESTERDAY'S CORPORATE NEW ISSUE MARKET WAS SLUGGISH AS ONLY EIGHT HUNDRED NINETY MILLION DOLLARS OF DEBT WAS PRICED ISSUERS INCLUDED BANQUE PARIBAS WHICH SOLD THREE HUNDRED MILLION DOLLARS OF DEBT OUT OF ITS NEW YORK BRANCH A. N. R. PIPELINE COMPANY WHICH SOLD ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF DEBENTURES AND NORTEK INCORPORATED WHICH SOLD ONE HUNDRED NINETY MILLION DOLLARS OF JUNK BONDS TRADING IN THE SECONDARY MARKET WAS EXTREMELY LIGHT AS THE MARKET SHRUGGED OFF A PLUNGING U. S. DOLLAR TRADING IN THE JUNK BOND MARKET WAS ALSO LIGHT WITH PRICES CLOSING UNCHANGED NORTEK WHICH MAKES BUILDING PRODUCTS AND INDUSTRIAL AND ELECTRICAL PRODUCTS SOLD ONE HUNDRED NINETY MILLION DOLLARS OF TEN YEAR NINE POINT EIGHT SEVEN FIVE PERCENT SENIOR SUBORDINATED NOTES AT NINETY NINE POINT TWO ONE FOUR TO YIELD TEN PERCENT THE BONDS TRADED UP TO PAR FOR A NINE POINT EIGHT SEVEN FIVE PERCENT YIELD BEAR STEARNS AND COMPANY WAS THE LEAD MANAGER FOR THE DEAL WHICH WAS RATED C. A. A. BY MOODY'S AND TRIPLE C. BY S. AND P. SPOOKED BY A PLUNGE IN THE DOLLAR AGAINST THE YEN TRADERS SENT PRICES OF LONGER TERM TREASURY SECURITIES MODERATELY LOWER SECURITIES MATURING IN FIVE YEARS AND LESS MEANWHILE FINISHED LITTLE CHANGED THE DOLLAR TOUCHED A NEARLY SIX MONTH LOW AGAINST THE YEN YESTERDAY TRADERS WORRIED THAT IN RESPONSE TO THE DOLLAR'S STEEP DECLINE JAPANESE INVESTORS WOULD UNLOAD TREASURY SECURITIES BUT THERE WAS LITTLE EVIDENCE THAT TOOK PLACE WITH MOST OF THE DECLINE COMING AT THE HANDS OF SPECULATORS FOR MOST OF THE SESSION TRADING WAS LISTLESS WITH DEALERS FINDING LITTLE REASON TO PUSH THE MARKET SIGNIFICANTLY IN EITHER DIRECTION BUT AT MIDAFTERNOON TRADERS TURNED THEIR ATTENTION TO THE DEVELOPMENTS IN THE FOREIGN EXCHANGE MARKET IN RESPONSE TO CONCERNS THAT JAPANESE INVESTORS MIGHT BEGIN UNLOADING LONG TERM SECURITIES TRADERS BEGAN SELLING TREASURYS FOR JAPANESE BOND HOLDERS A WEAKENING DOLLAR AND A STRENGTHENING YEN WOULD ERODE THE VALUE OF THEIR DOLLAR DENOMINATED HOLDINGS DESPITE THE WIDESPREAD TALK THERE DIDN'T APPEAR TO BE SIGNIFICANT SELLING BY JAPANESE INVESTORS THEY REALLY HAVEN'T BEEN DOING ANYTHING SAID TIM HEATON A BOND TRADER AT NIKKO SECURITIES COMPANY INTERNATIONAL THE TREASURY'S TEN YEAR NOTE ENDED ONE EIGHTH POINT LOWER AT NINETY NINE AND TWENTY FIVE THIRTY SECONDS TO YIELD FIVE POINT EIGHT NINE PERCENT UP FROM FIVE POINT EIGHT SEVEN PERCENT ON FRIDAY SEPARATELY THE TREASURY SOLD THIRTEEN WEEK AND TWENTY SIX WEEK BILLS AT ITS WEEKLY AUCTION HERE ARE THE RESULTS OF THE SALE RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A THREE HUNDRED SIXTY DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A THREE HUNDRED SIXTY FIVE DAY YEAR BOTH ISSUES ARE DATED FEBRUARY SEVENTEENTH THE THIRTEEN WEEK BILLS MATURE MAY NINETEENTH NINETEEN NINETY FOUR AND THE TWENTY SIX WEEK BILLS MATURE AUGUST EIGHTEENTH NINETEEN NINETY FOUR INVESTORS WERE GEARING UP FOR WHAT WILL PROBABLY BE TODAY'S MOST CLOSELY WATCHED DEAL A THREE POINT TWO BILLION DOLLAR OFFERING OF REVENUE ANTICIPATION WARRANTS FROM THE STATE OF CALIFORNIA THE REVENUE ANTICIPATION WARRANTS ARE SHORT TERM SECURITIES THAT CAN MATURE IN THE FOLLOWING FISCAL YEAR SAID A SPOKESWOMAN FOR CALIFORNIA TREASURER KATHLEEN BROWN THEY ARE TO BE REPAID OUT OF ANTICIPATED REVENUES SUCH AS SALES TAXES TODAY'S SALE WILL BE THE LARGEST EVER OF RAWS IN CALIFORNIA INCLUDED IN THE OFFERING ARE ONE POINT TWO BILLION DOLLARS OF SERIES A RAWS WHICH MATURE ON DECEMBER TWENTY FIRST NINETEEN NINETY FOUR AND TWO BILLION DOLLARS OF SERIES B. WARRANTS WHICH MATURE ON JULY TWENTY SIXTH NINETEEN NINETY FOUR MOODY'S INVESTORS SERVICE INCORPORATED HAS RATED THE NINETEEN NINETY FOUR WARRANTS MIG ONE STANDARD AND POOR'S CORPORATION HAS RATED THE SECURITIES S. P. ONE AND FITCH INVESTORS SERVICE INCORPORATED HAS AS SIGNED AN F. ONE PLUS RATING ALTHOUGH CALIFORNIA'S NINETEEN NINETY FOUR REVENUE ANTICIPATION WARRANTS HAVE RECEIVED SOME OF THE HIGHEST SHORT TERM RATINGS GIVEN BY THE MAJOR RATING AGENCIES CONCERNS ABOUT THE STATE'S ECONOMIC CONDITION LINGER STILL STRUGGLING AFTER THE RECESSION CALIFORNIA HAS BEEN HURT BY A STRING OF DISASTERS INCLUDING LAST MONTH'S EARTHQUAKE IN LOS ANGELES FIRES AND MUDSLIDES LAST WEEK S. AND P. REVISED ITS LONG TERM RATING OUTLOOK ON CALIFORNIA TO NEGATIVE FROM STABLE SAYING SIGNIFICANT ECONOMIC AND FISCAL PRESSURES CONTINUE TO HAMPER THE STATE'S EFFORTS TO MAINTAIN FINANCIAL STABILITY PROCEEDS FROM THE SERIES A RAWS WILL BE USED TO HELP ERASE CALIFORNIA'S BUDGET DEFICIT THE SHORTFALL STOOD AT TWO POINT EIGHT BILLION DOLLARS LAST JUNE WHEN THE STATE'S EIGHTEEN MONTH DEFICIT ELIMINATION PLAN WAS APPROVED CALIFORNIA HAS ALREADY WIPED OUT ONE POINT SIX BILLION DOLLARS OF THE DEFICIT AND THE SERIES A WARRANTS ARE EXPECTED TO COVER THE REMAINING ONE POINT TWO BILLION DOLLARS SAID ASSISTANT STATE TREASURER HAL GEIOGUE PROCEEDS FROM THE SERIES B. WARRANTS WILL BE USED FOR THE MANAGEMENT OF CALIFORNIA'S CASH FLOW DURING THE REST OF THE STATE'S NINETEEN NINETY FOUR FISCAL YEAR AND THE START OF FISCAL NINETEEN NINETY FIVE CALIFORNIA'S FISCAL YEAR RUNS FROM JULY FIRST TO JUNE THIRTIETH QUOTE WE'RE OPTIMISTIC THAT THE YIELDS WILL BE BELOW THREE PERCENT QUOTE FOR BOTH SERIES OF RAWS SAID MR. GEIOGUE MEANWHILE MANY MUNICIPAL BONDS DROPPED ONE EIGHTH POINT TO ONE QUARTER POINT YESTERDAY AS THE DOLLAR TUMBLED AGAINST THE YEN IN THE FOREIGN EXCHANGE MARKETS PUSHING TREASURY PRICES LOWER PRICES OF MORTGAGE SECURITIES ENDED ABOUT EVEN AFTER A SLOW SESSION AMONG THE SIX POINT FIVE PERCENT SECURITIES FOR MARCH DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED ONE THIRTY SECOND LOWER AT NINETY EIGHT AND TWENTY SIX THIRTY SECONDS FEDERAL HOME LOAN MORTGAGE CORPORATION GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED THREE THIRTY SECONDS LOWER AT NINETY EIGHT AND THIRTY ONE THIRTY SECONDS AND NINETY EIGHT AND TWENTY FIVE THIRTY SECONDS RESPECTIVELY INVESTORS OUTSIDE THE DEALER COMMUNITY WEREN'T ACTIVE AT ALL YESTERDAY TRADERS SAID THE PRIMARY MARKET AS EXPECTED WAS QUIET AS SPREADS TO TREASURYS HAVEN'T WIDENED SIGNIFICANTLY IF AT ALL IN THE PAST FEW SESSIONS UNDERWRITERS AREN'T ABLE TO JUSTIFY CREATING NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS BECAUSE BUYING EXPENSIVE MORTGAGE COLLATERAL MEANS LESS OF A PROFIT ON THE REMIC THOMAS D. LAURICELLA CONTRIBUTED TO THIS ARTICLE THOMAS H. CARMODY WAS NAMED TO THE BOARD BRINGING THE TOTAL NUMBER OF DIRECTORS TO NINE AT THIS HOLDING COMPANY INVOLVED IN THE HEATING AND AIR CONDITIONING INDUSTRIES MR. CARMODY FORTY SEVEN YEARS OLD IS VICE PRESIDENT FOR U. S. OPERATIONS OF REEBOK INTERNATIONAL LIMITED MICHAEL BAKER CORPORATION SAID ITS BAKER AND ASSOCIATES UNIT SIGNED FIVE CONTRACTS TOTALING TWENTY TWO MILLION DOLLARS FOR DESIGN SERVICES WITH THE DEFENSE DEPARTMENT THE ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCE SERVICES COMPANY SAID THE CONTRACTS DO NOT INCLUDE ANY CONSTRUCTION SERVICES INCLUDED ARE AN ELEVEN POINT SIX MILLION DOLLAR CONTRACT FOR ENVIRONMENTAL ASSESSMENT AND DESIGN SERVICES FOR DEFENSE DEPARTMENT DEPENDENT SCHOOLS WORLD WIDE AND A FOUR POINT FIVE MILLION DOLLAR MASTER PLANNING SERVICES CONTRACT FOR THE BALTIMORE DISTRICT CORPS OF ENGINEERS GLOBAL NATURAL RESOURCES INCORPORATED SAID IT SUCCESSFULLY COMPLETED A NATURAL GAS WELL IN THE GULF OF MEXICO OFFSHORE TEXAS GLOBAL SAID ITS WELL NUMBER TWO ON HIGH ISLAND BLOCK TWENTY THREE L. TESTED AT FIVE MILLION CUBIC FEET OF GAS AND ONE HUNDRED SEVENTY THREE BARRELS OF CONDENSATE A DAY FROM DEPTHS OF TEN THOUSAND EIGHTY SIX TO TEN THOUSAND ONE HUNDRED SEVENTY THREE FEET THE OIL AND GAS COMPANY SAID THE WELL WILL BEGIN PRODUCTION IN THE SECOND QUARTER GLOBAL HAS A FIFTY PERCENT WORKING INTEREST IN THE WELL WHICH IT OPERATES CLOSELY HELD HALLHOUSTON OIL COMPANY HOLDS A TWENTY PERCENT WORKING INTEREST APACHE CORPORATION HOLDS TWENTY PERCENT AND EDISTO EXPLORATION AND PRODUCTION COMPANY A UNIT OF EDISTO RESOURCES CORPORATION HOLDS TEN PERCENT A BIG TRADE GROUP FOR HEALTH MAINTENANCE ORGANIZATIONS IS JOINING THE CLINTON ADMINISTRATION'S EFFORT TO BOOST VACCINATION RATES AMONG U. S. CHILDREN THE GROUP HEALTH ASSOCIATION OF AMERICA SAID MORE THAN TWO HUNDRED FIFTY H. M. O.S WILL WORK TOWARD DEVELOPING STRATEGIES FOR RAISING VACCINATION RATES TO NINETY PERCENT BY NINETEEN NINETY SIX CURRENTLY ABOUT SIXTY PERCENT OF CHILDREN ARE FULLY IMMUNIZED WITH DIPHTHERIA TETANUSPERTUSSIS OR DTP POLIO AND MEASLES MUMPS RUBELLA VACCINES AND ONLY ABOUT FORTY PERCENT OF ALL CHILDREN GET THEM ON THE RECOMMENDED SCHEDULE ONE RESULT IN THE THREE YEARS ENDED IN NINETEEN NINETY ONE SOME ONE HUNDRED THIRTY SIX CHILDREN DIED IN MEASLES OUTBREAKS THAT PUBLIC HEALTH OFFICIALS SAY COULD HAVE BEEN PREVENTED WITH BETTER VACCINATION RATES LEGISLATION AIMED AT ACHIEVING THE NINETY PERCENT GOAL WAS PASSED BY CONGRESS LAST YEAR AND OFFICIALS AT THE NATIONAL VACCINE PROJECT IN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FIGURED H. M. O.S WHICH EMPHASIZE PREVENTIVE CARE COULD HELP LEAD THE EFFORT QUOTE WE NEED SOMEONE OUT FRONT TO DEMONSTRATE THAT IT'S POSSIBLE TO DO IT QUOTE SAID ANTHONY ROBBINS OF THE NATIONAL VACCINE PROJECT UNDER THE PROGRAM PARTICIPATING H. M. O.S WILL DETERMINE THEIR NINETEEN NINETY THREE VACCINATION RATES FOR THEIR MEMBERS TO ESTABLISH A BASELINE SET ANNUAL GOALS FOR IMPROVEMENT AND REPORT ON STRATEGIES THAT WORK AND THOSE THAT DON'T SAID PAMELA MIDDLESTAT DIRECTOR OF MEDICAL AFFAIRS AT GHAA BY DISSEMINATING SUCH INFORMATION EVEN AMONG H. M. O.S THAT MIGHT COMPETE IN LOCAL MARKETS THE HOPE IS THAT OVERALL IMMUNIZATIONS WILL INCREASE AND THAT MODELS FOR BOTH H. M. O.S AND NON H. M. O. ORGANIZATIONS CAN BE DEVELOPED H. M. O.S THAT SERVE MEDICAID PATIENTS WILL BE AMONG THE PARTICIPANTS EXPERIENCE AT SOME TWENTY H. M. O.S OPERATED BY UNITED HEALTHCARE ILLUSTRATES SOME OF THE HURDLES FACING THE INITIATIVE EVEN THOUGH ALL THE H. M. O.S PROVIDE FREE VACCINES RATES AVERAGE ABOUT SIXTY FIVE PERCENT TO SEVENTY PERCENT DOCTOR NEWCOMER SAID A STUDY SHOWED THAT PHYSICIANS FREQUENTLY MISSED OPPORTUNITIES TO VACCINATE CHILDREN WHEN THEY WERE BROUGHT IN FOR OTHER REASONS BUT RESCHEDULING A VISIT WAS DIFFICULT BECAUSE WHILE PARENTS CAN GET TIME OFF FROM WORK TO TAKE A SICK CHILD TO A DOCTOR THEY CAN'T GET TIME OFF TO TAKE A WELL CHILD FOR A SHOT RAGTAG FORCES OPPOSED TO OLIVER NORTH'S U. S. SENATE BID ARE DESPERATELY SEEKING A FEW GOOD MEN AND WOMEN TO ATTEND A CONVENTION IN JUNE THAT WILL NOMINATE THE REPUBLICAN PARTY'S CANDIDATE FOR THE JOB COLLEGE KIDS LED BY THE SON OF A FORMER REPUBLICAN GOVERNOR LOADED WITH REPRINTS OF A DAMAGING ANTI NORTH ARTICLE FROM THE CONSERVATIVE READER'S DIGEST THEY'RE KNOCKING ON DOORS IN NORTHERN VIRGINIA SEEKING SUPPORT EX REAGAN ADMINISTRATION OFFICIALS INCLUDING SECRETARY OF STATE GEORGE SHULTZ AND DEFENSE SECRETARY FRANK CARLUCCI ALARMED AT THE NORTH JUGGERNAUT THEY'RE WRITING CHECKS TO HELP JIM MILLER WHO WAS PRESIDENT REAGAN'S BUDGET DIRECTOR AND IS MR. NORTH'S ONLY SIGNIFICANT G. O. P. OPPONENT DAN CAROL A FORMER OPPOSITION RESEARCH SPECIALIST FOR THE DEMOCRATIC PARTY HE IS BURROWING THROUGH RECORDS AND DOCUMENTS LOOKING FOR DIRT ON MR. NORTH THE FORMER MARINE CORPS LIEUTENANT COLONEL WHO AS A NATIONAL SECURITY COUNCIL STAFFER HELPED TO RUN A COVERT ARMS SUPPLY OPERATION TO SUPPORT ANTI SANDINISTA GUERRILLAS IN NICARAGUA THAT WAS PARTIALLY FUNDED BY PROCEEDS FROM THE SECRET SALE OF ARMS TO IRAN MR. CAROL HAS FORMED A COMMITTEE CALLED OPERATION LAST LAUGH INDEPENDENT EXPENDITURE OR OLLIE PAC TO SPREAD THE BAD NEWS AND FINALLY DUKE THE PILL POPPING WILD TURKEY SWILLING CHARACTER IN THE QUOTE DOONESBURY QUOTE COMIC STRIP HE'S PACKING UP HIS ASSAULT PISTOL AND HEADING THIS WAY PRESUMABLY TO EMBARRASS THE NORTH ENTOURAGE WHILE OSTENSIBLY TRYING TO HELP IT BY ENLISTING AS A BODYGUARD VIRGINIA REPUBLICANS LIKE TO SAY THEIR CONVENTIONS ARE THE WORLD'S LARGEST DEMOCRATIC GATHERINGS THIS YEAR THEY WORRY THE HALL WON'T BE BIG ENOUGH TO HOLD EVERYBODY MORE THAN TEN THOUSAND PEOPLE MAY SHOW UP OWING TO A WIDE OPEN SELECTION PROCESS AND THE INTEREST STIRRED UP BY MR. NORTH'S CANDIDACY MOST OBSERVERS SAY MR. NORTH A SHREWD CHARMING PERFORMER ON THE STUMP ALMOST CERTAINLY WILL WALK AWAY WITH THE CONVENTION'S ENDORSEMENT TO OPPOSE THE LIKELY WINNER OF THE DEMOCRATIC PARTY PRIMARY INCUMBENT SENATOR CHARLES S. ROBB BUT THE FORCES ARGUING THAT MR. NORTH DOESN'T DESERVE TO BE A MEMBER OF THE CONGRESS HE ADMITS HE LIED TO ARE SLOWLY WINNING SOME SERIOUS POINTS A MASON DIXON SLASH MEDIA RESEARCH POLL TAKEN LATE LAST MONTH SHOWED MR. ROBB DEFEATING MR. NORTH FORTY NINE PERCENT TO THIRTY TWO PERCENT IN AUGUST OF LAST YEAR MR. NORTH TRAILED BY ONLY NINE POINTS BUT MR. NORTH IS CONTROVERSIAL EVEN AMONG G. O. P. STALWARTS NOTHING BEING USED AGAINST HIM HURTS MORE THAN AN ARTICLE BY RACHEL WILDAVSKY IN THE JUNE NINETEEN NINETY THREE READER'S DIGEST THE TITLE WAS DOES OLIVER NORTH TELL THE TRUTH AND THE ANSWER UNEQUIVOCALLY WAS NO THE STORY WAS COMMISSIONED BY KENNETH Y. TOMLINSON THE MAGAZINE'S EDITOR IN CHIEF WHO SERVED IN THE REAGAN ADMINISTRATION AS DIRECTOR OF THE VOICE OF AMERICA I'D HEARD OVER THE YEARS FROM PEOPLE WHO WORKED WITH NORTH THAT HE WAS NEVER WHAT HE APPEARED TO BE MR. TOMLINSON SAYS THERE WAS A CREDIBILITY PROBLEM THERE WE TALKED TO A LOT OF PEOPLE AND THEY ALL SAID THEY FELT HE HAD A SERIOUSLY FLAWED CHARACTER THE READER'S DIGEST STORY TRACED A NUMBER OF TALES THAT MR. NORTH HAS TOLD BIG ONES AND LITTLE ONES MANY OF THEM INTIMATING A CLOSER RELATIONSHIP WITH MR. REAGAN THAN LOYAL REAGANITES BELIEVE EVER EXISTED THE ARTICLE STUNG IN WAYS THAT NOTHING THAT HAD APPEARED IN THE NEW YORK TIMES OR THE WASHINGTON POST COULD HAVE DONE MR. NORTH CALLS THE TIMES THE CRIMES AND THE POST THE COMPOST IN A LETTER TO LOYALIST FOLLOWERS HE SAID THE READER'S DIGEST HAS JOINED THESE OTHER PUBLICATIONS THIS QUOTE PACK OF MEDIA JACKALS QUOTE IN A QUOTE VENGEFUL EFFORT TO DESTROY ME QUOTE HE ALSO SAID IT WAS SIGNIFICANT THAT THESE ATTACKS HAD INTENSIFIED FOLLOWING PRESIDENT CLINTON'S PLAN TO ALLOW OPEN HOMOSEXUALS IN OUR ARMED FORCES MR. TOMLINSON NOTES THAT THE SAME EDITION OF HIS MAGAZINE CARRIED AN ARTICLE OPPOSING THE CLINTON PLAN THE READER'S DIGEST ARTICLE HAS BECOME THE PRINCIPAL PIECE OF LITERATURE DISSEMINATED BY DOOR TO DOOR CANVASSERS ALMOST ALL OF THEM COLLEGE STUDENTS FOR A GROUP CALLED CLEAN UP CONGRESS THAT IS RUN BY WOODY HOLTON THE SON OF VIRGINIA'S FIRST G. O. P. GOVERNOR LINWOOD HOLTON IT'S BEEN A VERY POWERFUL PIECE FOR US SAYS THE YOUNGER MR. HOLTON IT'S ESPECIALLY EFFECTIVE WITH THOSE REPUBLICANS WHO BELIEVE IN THE NINTH COMMANDMENT THOU SHALT NOT BEAR FALSE WITNESS AGAINST THY NEIGHBOR MR. MERRITT TO WHOM THE NORTH CAMPAIGN REFERS REQUESTS FOR COMMENT ON THE STOP OLLIE EFFORTS SAYS CLEAN UP CONGRESS HAS NO SUPPORT AMONG REPUBLICAN VOTERS ALL THEY'VE EVER DONE IS TRY TO DEFEAT REPUBLICAN CANDIDATES QUOTE BUT THE OLD REAGAN HANDS WHO ARE BACKING MR. MILLER CAN'T SO EASILY BE DISMISSED THEY ARE PARTICULARLY TROUBLED BY HIS CLAIMS ON MR. REAGAN'S FRIENDSHIP AND AFFECTION HE WAS NEVER CLOSE TO THE PRESIDENT THEY ASSERT THERE'S ONLY ONE REAGAN REPUBLICAN IN THIS RACE SAYS LYN NOFZIGER WHO WAS MR. REAGAN'S CALIFORNIA PRESS SECRETARY AND WHITE HOUSE POLITICAL DIRECTOR AND THAT'S JIM MILLER THE OTHER GUY MR. NORTH IS NOT A REAGAN REPUBLICAN HE WAS NEVER A PART OF OUR ORGANIZATION MR. REAGAN HIMSELF IS STAYING SILENT ON THE MATTER OBSERVING THE G. O. P. ELEVENTH COMMANDMENT THOU SHALT NOT SPEAK ILL OF A FELLOW REPUBLICAN THE FIFTY ONE YEAR OLD MR. MILLER SUCCEEDED DAVID STOCKMAN AS MR. REAGAN'S BUDGET DIRECTOR AND SAW THE POWER OF THE JOB DIMINISH THOUGH MR. MILLER WITH HIS BOISTEROUS MANNER AND LOUD WHISTLING WAS SOMETIMES HARD TO IGNORE IN RECENT YEARS MR. MILLER HAS RUN CITIZENS FOR A SOUND ECONOMY A LOBBYING GROUP THAT HAS FOUGHT FOR LOW TARIFFS AND LOW TAXES BUT HAS COME UNDER CRITICISM FOR SOME OF ITS TACTICS WHEN THE ORGANIZATION CLAIMED THAT LOCAL OUTPOSTS OF SUCH ALL AMERICAN ORGANIZATIONS AS THE BOY SCOUTS GIRL SCOUTS MARCH OF DIMES AND AMERICAN HEART ASSOCIATION HAD SIGNED ON TO FIGHT DETROIT'S PUSH FOR STEEP TARIFFS ON FOREIGN MINIVANS MANY OF THE LOCAL GROUPS COMPLAINED THEY HAD BEEN MISLED MR. MILLER'S MAIN PITCH IN HIS UPHILL SENATE CAMPAIGN IS THAT HE CAN WIN IN THE FALL AND THE CONTROVERSIAL MR. NORTH CANNOT HE GENERALLY AVOIDS TAKING ON MR. NORTH PERSONALLY THAT'S JUST WHAT DAN CAROL THE VETERAN OPPOSITION RESEARCH SPECIALIST IS DEDICATED TO DOING EVERY MONTH OR SO HIS OLLIE PAC ISSUES A NEW CHAPTER OF OLLIE'S FOLLIES IN WHICH HE EXAMINES MR. NORTH'S RECORD HE SHIPS IT OFF TO HIS CONTRIBUTORS AND TO MEMBERS OF THE MEDIA WHILE STOUTLY MAINTAINING THAT MR. CAROL ISN'T A SERIOUS THREAT TO THE CAMPAIGN MR. NORTH'S HANDLERS HAVE PUT TOGETHER A PACKET OF THEIR OWN CALLED DAN CAROL MUDSLINGER ON THE RUN MR. MERRITT THE NORTH SPOKESMAN SAYS THE ANTI OLLIE FORCES MAY MAKE NOISE AND GATHER MEDIA ATTENTION BUT WILL BE DROWNED BY THE PRO NORTH TIDES THAT WILL GIVE THEIR MAN THE NOMINATION COME JUNE QUOTE PUT ALL THOSE ANTI NORTH FOLKS IN A STRETCH LIMOUSINE QUOTE HE SAYS QUOTE AND SEND THEM DOWN TO THE CONVENTION QUOTE COLEMAN COMPANY SAID THAT ITS PRESIDENT AND CHIEF OPERATING OFFICER BOB RING WILL RESIGN EFFECTIVE MARCH FIRST THE CAMPING SUPPLY COMPANY SAID IT DOES NOT INTEND TO FILL THE POSITIONS MR. RING FIFTY ONE YEARS OLD WASN'T AVAILABLE FOR COMMENT A THIRTY TWO YEAR COLEMAN VETERAN MR. RING WAS PASSED OVER FOR THE JOB OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY BROUGHT IN A FORMER BLACK AND DECKER CORPORATION EXECUTIVE MIKE HAMMES TO SUCCEED RETIRING CHAIRMAN LAWRENCE M. JONES AT THE START OF THE YEAR JOE NOLD SENIOR VICE PRESIDENT OF OPERATIONS CHARLES OGDEN SENIOR VICE PRESIDENT OF SALES AND DAVID STEARNS SENIOR VICE PRESIDENT OF MARKETING WILL REPORT DIRECTLY TO MR. HAMMES FOLLOWING MR. RING'S DEPARTURE COLEMAN IS A UNIT OF RONALD PERELMAN'S MACANDREWS AND FORBES HOLDINGS INCORPORATED IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING COLEMAN CLOSED AT TWENTY SEVEN POINT EIGHT SEVEN FIVE DOLLARS DOWN TWELVE POINT FIVE CENTS SPAR AEROSPACE LIMITED SAID ITS COMSTREAM SUBSIDIARY HAS RECEIVED A TEN MILLION CANADIAN DOLLAR SEVEN POINT FIVE MILLION U. S. DOLLARS CONTRACT TO UPGRADE THE TELECOMMUNICATIONS SYSTEM OF INDONESIA IT SAID THE CONTRACT CALLS FOR SPAR TO SUPPLY INDONESIA'S PUBLIC COMMON CARRIER P. T. TELKOM WITH SATELLITE BASED TRUNKING EQUIPMENT TO PROVIDE TOLL QUALITY TELEPHONE SERVICES VIA TWENTY TRANSMISSION LOCATIONS THROUGHOUT THE ISLANDS OF INDONESIA THE CONTRACT IS FINANCED BY A LOAN FROM THE ASIAN DEVELOPMENT BANK SPAR ADDED DAVIDSON AND ASSOCIATES INCORPORATED A PUBLISHER OF EDUCATIONAL SOFTWARE SAID IT LICENSED THE FISHER PRICE LOGO AND PRODUCT NAMES FOR USE IN A NEW LINE OF MULTIMEDIA SOFTWARE FOR CHILDREN AGES THREE TO SEVEN FINANCIAL TERMS OF THE PACT WEREN'T DISCLOSED FISHER PRICE INCORPORATED A MAKER OF INFANT AND PRESCHOOL TOYS IS A SUBSIDIARY OF MATTEL INCORPORATED EL SEGUNDO CALIFORNIA TO HELP SPEED ITS INTERNATIONAL GROWTH AMERICAN TELEPHONE AND TELEGRAPH COMPANY HIRED A PROMINENT ITALIAN COMPUTER EXECUTIVE TO RUN ITS EUROPEAN BUSINESSES PIER CARLO FALOTTI FIFTY ONE YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF A. T. AND T.'S OPERATIONS IN EUROPE THE MIDDLE EAST AND AFRICA UNTIL RECENTLY MR. FALOTTI WAS PRESIDENT AND CHIEF EXECUTIVE OF ASK GROUP INCORPORATED A BIG BUT UNPROFITABLE COMPUTER SOFTWARE COMPANY BASED IN SANTA CLARA CALIFORNIA BUT HE'S BEST KNOWN AS AN EMPIRE BUILDER THE MAN WHO OVERSAW RAPID GROWTH IN EUROPE FOR DIGITAL EQUIPMENT CORPORATION DURING THE NINETEEN EIGHTIES AS ITS TOP EUROPEAN EXECUTIVE AMONG HIS GOALS AT A. T. AND T. MR. FALOTTI SAID IN A TELEPHONE INTERVIEW WILL BE TO DISCUSS EXPANDING COLLABORATION AMONG A. T. AND T. FRANCE'S FRANCE TELECOM AND GERMANY'S DEUTSCHE BUNDESPOST TELEKOM FOR MORE THAN A YEAR THE THREE PHONE GIANTS HAVE BEEN HOLDING INCONCLUSIVE TALKS ON JOINTLY PROVIDING BUSINESS COMMUNICATIONS SERVICES A. T. AND T. BASED IN NEW YORK WANTS THEM AS PARTNERS FOR A THREE HUNDRED FIFTY MILLION DOLLAR FIVE YEAR PLAN IT HAS HATCHED TO EXPAND ITS COMMUNICATIONS NETWORK IN EUROPE BUT ANY SUCH ALLIANCE WOULD STIR A POLITICAL STORM IN PARIS BONN AND BRUSSELS HEADQUARTERS OF THE EUROPEAN UNION WITH MANY COMPETITORS LIKELY TO BRAND IT AS ANTICOMPETITIVE AND TO TRY TO GET REGULATORS TO BLOCK IT MR. FALOTTI'S APPOINTMENT TO THE NEWLY CREATED POST IS PART OF A REORGANIZATION ANNOUNCED IN DECEMBER TO SPEARHEAD GROWTH ABROAD A. T. AND T. IS GROUPING ALL ITS DIVERSE OVERSEAS BUSINESSES INTO THREE UNITS WITH THEIR OWN CHIEF EXECUTIVES ONE EACH FOR EUROPE LATIN AMERICA AND THE ASIA PACIFIC REGION CURRENTLY EUROPE PROVIDES NEARLY TEN PERCENT OF A. T. AND T.'S WORLD WIDE REVENUE PARTLY THROUGH SALES OF COMPUTERS TELEPHONE EXCHANGES AND OTHER ELECTRONICS PRODUCTS BUT FOR A. T. AND T. THE BIG PRIZE WOULD BE A CHUNK OF THE CONTINENT'S COMMUNICATIONS SERVICES MARKET THOUGH GRADUALLY OPENING TO FOREIGNERS SERVICES IN MOST EUROPEAN COUNTRIES ARE STILL DOMINATED BY ONE LOCAL PLAYER SUCH AS DEUTSCHE TELEKOM IN GERMANY THUS A. T. AND T.'S ADVANCES SO FAR HAVE BEEN IN A FEW DEREGULATED NICHES ISSUING TELEPHONE CREDIT CARDS AROUND EUROPE PROVIDING DATA COMMUNICATIONS IN BRITAIN OR HELPING RUN BASIC PHONE SERVICES IN UKRAINE AND PARTS OF POLAND AND RUSSIA AT DIGITAL FROM NINETEEN EIGHTY THREE TO NINETEEN NINETY TWO MR. FALOTTI OVERSAW A NEAR SIXFOLD GROWTH IN ITS ANNUAL REVENUE IN EUROPE TO SIX POINT SEVEN BILLION DOLLARS FROM ABOUT ONE POINT TWO BILLION DOLLARS AS THE EUROPEAN COMPUTER MARKET GREW AND DIGITAL WOOED NEW CUSTOMERS AND BOUGHT SOME SMALLER LOCAL COMPANIES IN HIS LAST YEAR THERE DIGITAL'S EUROPEAN OPERATIONS FELL INTO RED INK ALONG WITH THE REST OF THE MAYNARD MASSACHUSETTS CORPORATION MR. FALOTTI ANNOUNCED HIS RESIGNATION JUST BEFORE DIGITAL FOUNDER KENNETH OLSEN WAS OUSTED BY THE BOARD MICROSOFT CORPORATION STRENGTHENING ITS TIES WITH THE ENTERTAINMENT INDUSTRY REACHED AN AGREEMENT TO ACQUIRE A LEADING SUPPLIER OF TOOLS FOR HOLLYWOOD SPECIAL EFFECTS FOR ABOUT ONE HUNDRED THIRTY MILLION DOLLARS IN STOCK MICROSOFT THE WORLD'S LARGEST SOFTWARE SUPPLIER SAID IT REACHED A DEFINITIVE AGREEMENT TO PURCHASE SOFTIMAGE INCORPORATED A MONTREAL COMPANY THAT IS WIDELY CONSIDERED A LEADER IN SOFTWARE TOOLS THAT HELP MOVIE AND VIDEO MAKERS SPICE UP THEIR PRODUCTIONS WITH SURREAL OR FANTASTIC IMAGERY SOFTIMAGE'S TOOLS FOR INSTANCE WERE USED IN THE MAKING OF SPECIAL EFFECTS CONTAINED IN THE MOVIE QUOTE JURASSIC PARK QUOTE AND IN MANY VIDEO GAMES THE TERMS OF THE DEAL REQUIRE THE APPROVAL OF SOFTIMAGE'S SHAREHOLDERS BUT EMPLOYEES OWN ABOUT THIRTY PERCENT OF THE COMPANY MICROSOFT'S OFFER WHICH WILL END UP AT TWENTY ONE DOLLARS TO TWENTY FOUR DOLLARS A SHARE IS WELL ABOVE SOFTIMAGE'S RECENT STOCK PRICE OF ABOUT FIFTEEN DOLLARS A SHARE IN ITS FISCAL YEAR ENDED LAST OCTOBER SOFTIMAGE EARNED TWO POINT NINE MILLION DOLLARS ON SALES OF TWENTY EIGHT POINT NINE MILLION DOLLARS ON THE NASDAQ STOCK MARKET YESTERDAY SOFTIMAGE CLOSED AT FIFTEEN POINT ONE TWO FIVE DOLLARS UP TWELVE POINT FIVE CENTS MICROSOFT CLOSED AT SEVENTY NINE POINT ONE TWO FIVE DOLLARS UP THIRTY SEVEN POINT FIVE CENTS MICROSOFT BASED IN REDMOND WASHINGTON CURRENTLY DOESN'T OFFER ANY PROFESSIONAL TOOLS FOR MOVIE MAKING SO THE PURCHASE GIVES IT A BOOST AS IT TRIES TO INCREASE ITS PRESENCE IN ENTERTAINMENT BUSINESSES BUT THE FIT BETWEEN THE TWO COMPANIES IS ROUGH SOFTIMAGE MAKES ITS TOOLS FOR SILICON GRAPHICS INCORPORATED'S BRAND OF WORKSTATIONS WHICH ARE SPECIALIZED COMPUTERS MICROSOFT DOESN'T OFFER ANY SOFTWARE FOR WORKSTATIONS AND A SOFTIMAGE EXECUTIVE ACKNOWLEDGED THAT SOFTIMAGE HAD NO PLANS TO ADAPT ITS SOFTWARE FOR PERSONAL COMPUTERS STILL THE DEAL REFLECTS THE ABILITY OF MICROSOFT WITH A BUOYANT STOCK AND CASH IN EXCESS OF TWO BILLION DOLLARS TO QUICKLY POSITION ITSELF AS A SUPPLIER TO BOTH PRODUCERS AND CONSUMERS OF VISUAL MEDIA IN A RECENT INTERVIEW MICROSOFT CHAIRMAN WILLIAM GATES SAID THAT THE COMPANY WAS VIGOROUSLY PURSUING GROWTH OPPORTUNITIES IN THE SO CALLED MULTIMEDIA FIELD WHERE SOUND IMAGES AND MOVING PICTURES ARE MESHED TOGETHER WITH THE HELP OF COMPUTERS AND SOFTWARE YESTERDAY CRAIG MUNDIE WHO OVERSEES MICROSOFT'S ADVANCED CONSUMER TECHNOLOGY GROUP SAID SOFTIMAGE'S TECHNOLOGY WILL HELP MICROSOFT SHARE IN MARKETS SPAWNED BY THE SO CALLED INFORMATION HIGHWAY FRENCH OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE SAID YESTERDAY IT WILL PURSUE PLANS TO BUILD A NEW TEN MILLION TON REFINERY AT LEUNA IN EASTERN GERMANY ONLY IF FUTURE PARTNERS IN THE VENTURE WILL ALLOW IT TO TAKE A MINORITY STAKE THE MOVE IS THE LATEST TWIST IN A DISPUTE BETWEEN ELF AND THE TREUHANDANSTALT THE GERMAN PRIVATIZATION AGENCY OVER THE EXTENT OF ELF'S COMMITMENT TO THE PROJECT ELF SAYS THAT ECONOMIC CONDITIONS HAVE CHANGED SINCE NINETEEN NINETY TWO WHEN IT ORIGINALLY AGREED TO TAKE A TWO THIRDS STAKE IN THE REFINERY PROJECT ITS PARTNER GERMAN TRADING COMPANY THYSSEN HANDELSUNION A. G. HAD SAID IT WOULD TAKE ONE THIRD ELF HAS SAID IT WANTS PARTNERS TO ALLEVIATE ITS BURDEN ELF AND THYSSEN ACQUIRED THE LEUNAWERKE A. G. REFINERY AND THE MINOL A. G. FILLING STATION NETWORK FROM THE TREUHANDANSTALT THEIR SELECTION AS THE WINNING BIDDER WAS LINKED TO COMMITMENTS TO MODERNIZE THE NETWORK UPGRADE THE EXISTING REFINERY AND BUILD A NEW PLANT AT LEUNA THE TOTAL INVESTMENT WAS ESTIMATED AT SIX BILLION MARKS THREE POINT FOUR THREE BILLION DOLLARS TO SEVEN BILLION MARKS AN ELF SPOKESMAN WOULDN'T SAY WHETHER THE COMPANY HAD ACTUALLY FOUND ANY OTHER PARTNERS WILLING TO PARTICIPATE ON A MINORITY OR OTHER BASIS A SPOKESWOMAN FOR TREUHAND SAID THE AGENCY HAD NO COMMENT OTHER THAN THAT TALKS WITH ELF ARE CONTINUING WITH THE NEXT MEETING SCHEDULED FOR THURSDAY WILLIAMS COMPANIES WILTEL COMMUNICATION SYSTEMS UNIT AGREED TO BUY OFFICE TELEPHONE EQUIPMENT SALES AND SERVICE OPERATIONS IN TWENTY NINE STATES FROM BELLSOUTH CORPORATION'S BELLSOUTH COMMUNICATION SYSTEMS UNIT TERMS WEREN'T DISCLOSED SERVICE CORPORATION INTERNATIONAL AGREED TO ACQUIRE LE PINE HOLDINGS PROPRIETARY LIMITED MELBOURNE AUSTRALIA TERMS WEREN'T DISCLOSED MORRISON KNUDSEN CORPORATION WON A CONTRACT VALUED AT ONE HUNDRED TEN MILLION DOLLARS TO DESIGN AND DEVELOP A WASTE WATER TREATMENT PLANT IN PORT SAID EGYPT FIELDCREST CANNON INCORPORATED SAID IT WILL SPEND NINETY MILLION DOLLARS ON A NEW THREE HUNDRED TWENTY EIGHT THOUSAND SQUARE FOOT TOWEL WEAVING PLANT IN PHENIX CITY ALABAMA ALEXANDER AND ALEXANDER SERVICES INCORPORATED ESTABLISHED A BUSINESS UNIT IN MEXICO CITY TO SUPPORT RISK AND INSURANCE NEEDS OF CUSTOMERS IN THE REGION IT RECENTLY PURCHASED AN EIGHTY PERCENT INTEREST IN ASESORES KENNEDY AGENTE DE SEGUROS S. A. MEXICO TEXAS ISN'T THE FIRST STATE TO AWARD A CONTRACT FOR A STATEWIDE ELECTRONIC BENEFITS TRANSFER SYSTEM AS WAS STATED IN AN ARTICLE FRIDAY MARYLAND ALREADY HAS A SYSTEM THE CLAIM THAT TEXAS WAS FIRST WAS MADE BY A SPOKESMAN FOR GTECH HOLDINGS CORPORATION THE CONTRACT WINNER HORIZON HEALTHCARE CORPORATION WILL PAY GREENERY REHABILITATION GROUP INCORPORATED SHAREHOLDERS ZERO POINT TWO FIVE SHARE OF HORIZON STOCK FOR EACH GREENERY SHARE HELD AN ARTICLE YESTERDAY INCORRECTLY STATED THAT GREENERY SHAREHOLDERS WILL RECEIVE ONE HORIZON SHARE FOR EVERY GREENERY SHARE I. D. B. MOBILE COMMUNICATIONS INCORPORATED IS A JOINT VENTURE OF I. D. B. COMMUNICATIONS GROUP INCORPORATED AND TELEGLOBE INTERNATIONAL INCORPORATED OF CANADA IN AN ARTICLE THURSDAY I. D. B. COMMUNICATIONS WAS MISIDENTIFIED RAW STEEL PRODUCTION BY THE NATION'S MILLS FELL TWO POINT NINE PERCENT LAST WEEK TO ONE MILLION EIGHT HUNDRED FIVE THOUSAND TONS FROM ONE MILLION EIGHT HUNDRED FIFTY NINE THOUSAND TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE ZERO POINT SIX PERCENT FROM THE ONE MILLION SEVEN HUNDRED NINETY FIVE THOUSAND TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED EIGHTY SEVEN POINT SIX PERCENT OF ITS CAPABILITY LAST WEEK COMPARED WITH NINETY POINT THREE PERCENT THE PREVIOUS WEEK AND EIGHTY FOUR POINT NINE PERCENT A YEAR AGO THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK WIENER MAGAZINE IS NOT ABOUT HOT DOGS OH DEAR NO IT IS ABOUT THE LIFE AND TIMES OF VIENNA WHICH IN GERMAN IS CALLED WIEN AND THE CITY'S RESIDENTS KNOWN AS WIENERS IT HAS NEVER EVER PUBLISHED A PARAGRAPH ABOUT WIENERS FOR IN WIEN YOU SEE THERE ARE NO WIENERS QUOTE CERTAINLY NOT QUOTE SNIFFS GEORG BERNERT OF THE VIENNA BUTCHERS' GUILD NO WIENER WOULD WALK INTO A BUTCHER SHOP AND ORDER A COUPLE OF WIENERS OF COURSE NOT A WIENER WOULD WALK INTO A BUTCHER SHOP AND ORDER A COUPLE OF FRANKFURTERS SAYS MR. BERNERT IN WIEN WE HAVE ALWAYS CALLED WIENERS FRANKFURTERS IN FRANKFURT THE FRANKFURTERS NATURALLY CALL THE VIENNA FRANKFURTER WHICH IS A MIXTURE OF BEEF AND PORK A WIENER BUT FRANKFURT HAS ANOTHER DACHSHUND SHAPED SAUSAGE THIS ONE ALL PORK THAT THE FRANKFURTERS CALL A FRANKFURTER WHY NOT WE FRANKFURTERS HAVE NO PROBLEM CALLING A FRANKFURTER A FRANKFURTER BOASTS THEO WERSHOVEN GENERAL MANAGER OF THE GERMAN BUTCHERS' ASSOCIATION QUOTE SOME CITIES HAVE A SOCCER TEAM THAT CARRIES THE NAME OF THE CITY AROUND THE WORLD FRANKFURT HAS A SAUSAGE ARE THE WIENERS NOT SO PROUD OF THEIR SAUSAGE IT'S EASY FOR THE FRANKFURTERS TO TALK FOR IT IS MUCH SIMPLER TO GO THROUGH LIFE AS A FRANKFURTER OR A HAMBURGER OR A BERLINER JELLY DOUGHNUT FOR THAT MATTER NONE OF THOSE NAMES HAVE TAKEN ON THE UNSAVORY MEANINGS IN OTHER LANGUAGES THAT WIENER HAS IN ENGLISH THUS PRESIDENT KENNEDY COULD STAND UP IN WEST BERLIN AND DECLARE HIMSELF TO BE A JELLY DOUGHNUT WHILE NO AMERICAN PRESIDENT WOULD RISE BEFORE AN ENTIRE CITY AND SHOUT ICH BIN EIN WIENER BUT THAT ISN'T WHY THE WIENERS CALL THE WIENER A FRANKFURTER NO ONE HERE IS INSULTED TO BE CALLED A WIENER WE'RE ALL WIENERS LAUGHS MR. BERNERT TO EXPLAIN MR. BERNERT PRODUCES A FILE STUFFED WITH SAUSAGE LORE AS HE OPENS IT YELLOWING PAPERS SPILL ONTO HIS DESK TAKING THE TALE BACK TO THE HEYDAY OF THE AUSTRO HUNGARIAN MONARCHY IT IS ONE THOUSAND SEVEN HUNDRED EIGHTY NINE JOHANN GEORG LAHNER A PENNILESS BUTCHER'S APPRENTICE IN GERMANY HOPS A BARGE FLOATING DOWN THE DANUBE TO SEEK HIS FORTUNE IN VIENNA IN HIS NEW HOME HE OPENS A HUMBLE MEAT SHOP ONE DAY IN ONE THOUSAND EIGHT HUNDRED FIVE HE THROWS SOME BEEF AND PORK TOGETHER INTO A POT STIRS IN A COMBINATION OF SPICES AND PRODUCES A NEW SAUSAGE AS A TRIBUTE TO FRANKFURT WHERE HE HAD LEARNED HIS SKILLS HE DUBS HIS CREATION THE FRANKFURTER WHICH IS JUST FINE WITH NINETEENTH CENTURY WIENERS RESIDENTS OF A CITY CONSIDERED THE EPITOME OF CIVILIZATION BESIDES IMPERIAL VIENNA ALREADY HAS A HEARTY GASTRONOMICAL AMBASSADOR THE WIENER SCHNITZEL NOT THAT THE WIENERS ARE SAUSAGE SNOBS ACTUALLY THE WIENERS LOVE THEIR FRANKFURTERS THEY EAT THEM BOILED FRIED OR GRILLED WITH MUSTARD KETCHUP OR HORSERADISH THEY EAT THEM WEARING TUXEDOS AND THEY EAT THEM WEARING LEDERHOSEN JOHANN STRAUSS CHOMPS ON FRANKFURTERS WHILE COMPOSING HIS WALTZES KAISER FRANZ THE SECOND THE EMPEROR HIMSELF TOSSES THEM BACK FOR BREAKFAST A PRACTICE CONTINUED BY KAISER FRANZ JOSEPH WHO WASHES THEM DOWN WITH A COUPLE OF BEERS MEANWHILE THE SAUSAGE FROM WIEN IS MAKING ITS WAY THROUGH THE EMPIRE AND BEYOND IN THESE DISTANT UNCOUTH REACHES A GREAT PARADOX IS BORN THE SAUSAGE THAT THE WIENERS CALL A FRANKFURTER IS CALLED A WIENER FOR THE CITY WHENCE IT CAME BY EVERYONE ELSE SOON THE WIENERS THEMSELVES FORGET THAT THEIR FRANKFURTER CAME FROM WIEN SO IN NINETEEN FIFTY FIVE THE BUTCHERS OF THE CITY TAKE IT UPON THEMSELVES TO REMIND EVERYONE WITH A BIG PARTY CELEBRATING THE WIENER FRANKFURTER'S ONE HUNDRED FIFTIETH BIRTHDAY THEY RENT THE VIENNA CONCERT HOUSE THE POLICE ORCHESTRA AND THE SLAUGHTERHOUSE BAND PLAY WALTZES THE CITY'S BUTCHERS DONATE MONEY TO THE VIENNA ORPHANAGE A POEM TITLED THE SAUSAGE REVUE IS RECITED COME FROM AUSTRIA EVERY YEAR EAT THE WURST AT TEN A. M. AND THEY WON'T FORGET AGAIN QUOTE ALAS THE WIENERS FORGET AGAIN IN FACT MODERN WIENERS HAVE TAKEN TO STICKING THEIR FRANKFURTER IN A BUN AND CALLING IT OF ALL THINGS A HOT DOG IN FRANKFURT BY CONTRAST THE ALL PORK FRANKFURTER OCCUPIES AN HONORED PLACE ALMUTH WESTECKER PART OF A TEAM THAT NURTURES THAT CITY'S IMAGE ENTHUSIASTICALLY OFFERS A GLOSSY HARD COVER BOOK PUBLISHED BY ONE OF THE CITY'S FRANKFURTER MAKERS DEDICATED TO THE SAUSAGE THE BOOK GLOWS WITH THE FRANKFURTERS' PRIDE IN THEIR FRANKFURTER IN NINETEEN OH FIVE FOR INSTANCE WHEN THE HESSIAN FIELD ARTILLERY REGIMENT WAS GIVEN THE NAME FRANKFURT AN ARTIST PROUDLY PROPOSED THAT THE SOLDIERS WEAR EPAULETS DEPICTING A PAIR OF FRANKFURTERS AND A POT OF MUSTARD THEY NEVER DID IN NINETEEN TWENTY NINE THE FRANKFURTERS APPALLED THAT SAUSAGES OF LESSER QUALITY BEARING THEIR NAME WERE BEING MARKETED AROUND THE WORLD TRIED IN VAIN TO PROTECT THEIR SAUSAGES WITH A DESIGNATION OF ORIGIN TRADEMARK MEANING THAT ONLY BUTCHERS IN THE FRANKFURT REGION COULD REALLY MAKE FRANKFURTERS THE FRANKFURTERS STAND BY THEIR FRANKFURTERS WE DON'T HAVE SUCH LOFTY IDEALS AS THE KAISER CITY SAYS MS. WESTECKER WINKING TOWARD WIEN WE HAVE NO ARISTOCRATIC TRADITION HERE WE APPRECIATE THAT THE FRANKFURTER IS A SYMBOL OF FRANKFURT QUOTE IN VIENNA THERE IS NO BOOK NO TRADEMARK EXALTING THE WIENER AT CITY HALL THE BOASTING IS OF THE WIENER SCHNITZEL AND THE WIENER STRUDEL THE WIENER WALTZES AND THE WIENER OPERA PROBABLY ONE REASON WE'VE NEVER THOUGHT ABOUT PROMOTING WIEN WITH THE WIENER SHRUGS JUTTA WIPPLINGER OF THE VIENNA TOURIST BOARD IS THAT IN WIEN A WIENER IS A FRANKFURTER ONE OF THESE DAYS THOUGH THE WIENERS MAY BE FORCED TO OWN UP TO WHAT ONE OF THEIR RENDERING MACHINES WROUGHT AUSTRIA IS CAMPAIGNING TO JOIN THE EUROPEAN UNION WHICH IS CONTEMPLATING A LAW REGULATING DESIGNATION OF ORIGIN TRADEMARKS IF THE LAW IS ADOPTED RESERVING THE WORD FRANKFURTER ONLY FOR THE SAUSAGES MADE IN FRANKFURT AND IF AUSTRIA IS ACCEPTED INTO THE E. U. WELL THEN THEN SAYS DIETER STANG SALES DIRECTOR OF HANS WIRTH K. G. ONE OF ONLY THREE COMPANIES IN THE FRANKFURT AREA THAT MAKE THE TRUE FRANKFURTER THE VIENNESE WOULD HAVE TO CALL THEIR FRANKFURTERS WIENERS FOR THE WIENERS IT IS THE WURST CASE SCENARIO A JAGUAR PEACEABLY COEXISTS WITH A LLAMA A WOLF BLITHELY IGNORES A SHEEP AN EAGLE GENTLY LANDS NEAR A RABBIT LEAVING THE FUZZY TAILED CREATURE UNDISTURBED THE TELEVISION SPOT WHICH COULD BE A PUBLIC SERVICE ANNOUNCEMENT FOR BROTHERHOOD IS ACTUALLY A COMMERCIAL FOR JOHN HANCOCK MUTUAL LIFE INSURANCE THE SUGAR COATED MESSAGE EVERY TWO YEARS THE WORLD'S COUNTRIES PUT ASIDE DIFFERENCES AND COME TOGETHER TO COMPETE IN THE OLYMPIC GAMES QUOTE AT JOHN HANCOCK IT IS OUR HOPE THAT SOMEDAY THIS IS WHAT REAL LIFE WILL BE QUOTE THE VOICEOVER SAYS MANY COMPANIES USE THE OLYMPICS TO PROMOTE THEIR OWN PROWESS OR PRODUCTS FOR INSTANCE INTERNATIONAL BUSINESS MACHINES' COMMERCIALS TELL HOW OLYMPICS OFFICIALS RELY ON I. B. M. TECHNOLOGY TO RECORD ATHLETES' PERFORMANCE AND THERE'S NO MISTAKING WHAT'S BEING PITCHED IN COCA COLA'S OLYMPIC THEMED ADS HOWEVER JOHN HANCOCK AND ITS BOSTON AD AGENCY HILL HOLLIDAY CONNORS COSMOPULOS DECIDED TO ABANDON THE OBVIOUS BY GAMBLING ON A SIMPLE BUT ATTENTION GRABBING SOFT SELL MESSAGE DAVID D'ALESSANDRO SENIOR VICE PRESIDENT OF JOHN HANCOCK FINANCIAL SERVICES THE PARENT COMPANY SEES THE OLYMPICS AS A MARKETING TOOL TO PUSH BRAND AWARENESS A FAMILIAR MANTRA ON MADISON AVENUE THE OLYMPICS REPRESENT THE HIGHEST LEVEL OF ATHLETIC ACHIEVEMENT TRUST AND CREDIBILITY HE SAYS SYMBOLIZING WHAT WE SELL IN OUR BUSINESS STILL SOME MARKETING EXPERTS QUESTION THE WISDOM OF SUCH A SUBTLE AD CAMPAIGN THE VIEWER IS MORE INTERESTED IN WHAT'S IN IT FOR ME AND THIS COMMERCIAL DOESN'T ANSWER THAT QUESTION SAYS HAL ROSS PRESIDENT OF MAPES AND ROSS A COMMUNICATIONS RESEARCH COMPANY IN PRINCETON N. J. THERE IS NO REAL LINK BETWEEN HANCOCK AND THE CUSTOMER YES PEOPLE WILL ACCEPT THE MESSAGE BUT THIS IS A COMMERCIAL THAT COULD JUST AS EASILY BE FOR COKE OR ANY OTHER PRODUCT IT'S A NICE PLEASANT MESSAGE BUT I'M NOT SURE WHAT THE LONGTERM GAIN FOR HANCOCK WILL BE JOHN HANCOCK IS SPENDING ABOUT SEVEN MILLION DOLLARS TO ADVERTISE ON C. B. S.'S PRIME TIME COVERAGE OF THE WINTER OLYMPICS FROM LILLEHAMMER NORWAY WHICH BEGAN SATURDAY THE NINETEEN NINETY FOUR WINTER OLYMPICS IS THE FIRST OF A FOUR YEAR DEAL THAT BEGAN IN JULY NINETEEN NINETY THREE IN THE CONTRACT TERMS OF WHICH WEREN'T DISCLOSED HANCOCK IS THE OFFICIAL LIFE INSURANCE SPONSOR OF THE GAMES A HANCOCK SPOKESMAN SAYS IT IS FAIR TO ASSUME THAT THE COMPANY WILL ALSO BUY COMMERCIAL TIME ON THE NINETEEN NINETY SIX SUMMER GAMES IN ATLANTA WHICH WILL BE BROADCAST ON GENERAL ELECTRIC'S N. B. C. NETWORK HANCOCK CAN'T PROMOTE ITS OTHER FINANCIAL SERVICES BECAUSE IT IS THE EXCLUSIVE LIFE INSURANCE SPONSOR ONLY THERE IS NO EXCLUSIVE FINANCIAL SERVICES SPONSOR A HANCOCK SPOKESMAN SAYS BECAUSE IT IS QUOTE TOO EXPENSIVE QUOTE HANCOCK SKIRTED THE ISSUE BY MAKING SOME OF ITS ADS GENERIC WITH THE SLOGAN REAL LIFE REAL ANSWERS THE SPOKESMAN NOTES ALL OUR SERVICES WILL GET A BOUNCE OUT OF THE ADS ALTHOUGH JOHN HANCOCK ADVERTISED ON THE OLYMPICS IN PAST YEARS EARLIER COMMERCIALS WERE PRODUCT ORIENTED THIS TIME WHILE THE CREATIVE APPROACH VARIES ALL THE HANCOCK ADS ARE SENTIMENTAL AND LOW KEY IN FACT THREE OF THEM ARE DEVOID OF ANY PICTURES INSTEAD JUST A NAME AGE AND OCCUPATION POP UP ON A BLACK SCREEN AS A VOICEOVER READS OPTIMISTIC PROSE EXAMPLE ZOE COSTELLO A NINE YEAR OLD THIRD GRADER SAYS THE COOLEST PART WERE A LOT OF ATHLETES MY AGE THE WHOLE WORLD WAS ROOTING FOR THEM IT MADE ME FEEL LIKE I COULD DO SOMETHING GREAT RIGHT NOW QUOTE OTHER THAN THE TONE THE ADS STRIKINGLY RESEMBLE THOSE FROM AETNA LIFE AND CASUALTY WHICH ALSO FEATURE WORDS ON AN OTHERWISE BLANK SCREEN WHETHER OR NOT THE ADVERTISING WORKS THE TIE IN WITH THE OLYMPICS ALREADY HAS HELPED BOOST INTERNAL INCENTIVE PROGRAMS AT HANCOCK THE COMPANY CONDUCTS CONTESTS IN WHICH TOP PERFORMING AGENTS WIN TRIPS TO SUCH SPOTS AS PARIS ROME AND HAWAII USUALLY ABOUT SIXTY AGENTS WHO RECEIVE ONE HUNDRED THOUSAND DOLLARS IN COMMISSIONS THEIR FIRST YEAR MEANING THEY SELL ABOUT TWO HUNDRED FIFTY THOUSAND DOLLARS WORTH OF LIFE INSURANCE PREMIUMS WIN THE TRIPS THIS YEAR ONE HUNDRED TWENTY AGENTS QUALIFIED TO MAKE THE TREK TO LILLEHAMMER MR. D'ALESSANDRO SAYS THAT'S MOTIVATION HE BELIEVES THE OLYMPICS INCENTIVE HELPED THE COMPANY'S LIFE INSURANCE BUSINESS OUTPACE THE INDUSTRY HANCOCK CITING FIGURES FROM THE LIFE INSURANCE MARKETING AND RESEARCH ASSOCIATION IN FARMINGTON CONNECTICUT SAYS ITS TOTAL LIFE INSURANCE SALES GREW FOURTEEN PERCENT BETWEEN JANUARY AND NOVEMBER NINETEEN NINETY THREE COMPARED WITH THE YEAR EARLIER PERIOD WHILE THE INDUSTRY'S GROWTH RATE WAS ABOUT THREE PERCENT THIS IS A SALES PUSH BUSINESS SAYS MR. D'ALESSANDRO WE WANT OUR LOGO THE BOLD SIGNATURE OF MR. HANCOCK MARRIED WITH THE OLYMPIC RINGS TOGETHER IT MAKES FOR A POTENT MARKETING DUO FORD MOTOR COMPANY'S LINCOLN MERCURY DIVISION SIGNED UP TO ADVERTISE ON THE INTERNET NETWORK VIA A TWENTY FOUR HOUR ELECTRONIC CAR SHOWROOM MARKING PERHAPS THE FIRST BY A MAJOR MARKETER TO REACH WIRED CONSUMERS ON THE GLOBAL COMPUTER NETWORK LINCOLN MERCURY IS SETTING UP SHOP ON THE ELECTRONIC NEWSSTAND AN ELECTRONIC MAGAZINE SUBSCRIPTION SERVICE BROWSERS CAN CHOOSE TO ENTER THE CYBER SHOWROOM VIA THE NEWSSTAND'S MAIN MENU SAID JEFFREY DEARTH CHIEF EXECUTIVE OF THE ELECTRONIC NEWSSTAND AND PRESIDENT OF THE NEW REPUBLIC A WASHINGTON MAGAZINE PUBLISHER OTHER QUOTE BUSINESS INFORMATION CENTERS QUOTE ARE UNDER DISCUSSION HE SAID WITH ADVERTISERS IN AIRLINES FINANCIAL SERVICES AND COMPUTERS NEW REPUBLIC INCORPORATED FOUNDED THE ELECTRONIC NEWSSTAND IN JULY AS A JOINT VENTURE WITH INTERNET COMPANY A CAMBRIDGE MASSACHUSETTS TECHNICAL SERVICES COMPANY THE SERVICE STARTED WITH EIGHT MAGAZINES REPRINTING ARTICLES FOR USERS TO READ FOR FREE AND ALSO TAKING SUBSCRIPTION ORDERS NOW SIXTY MAGAZINES PARTICIPATE AND THE NEWSSTAND AVERAGES THIRTY THOUSAND ACCESSES A DAY MR. DEARTH SAID LINCOLN MERCURY PLANS TO REPRINT CATALOGS AND BROCHURES CAR REVIEWS AND LEASING AND PRICING INFORMATION ABOUT ITS MODELS SAID KEVIN HOLOWICKI A VICE PRESIDENT AT LINCOLN MERCURY'S AD AGENCY YOUNG AND RUBICAM IT'S NOT INTRUSIVE MR. HOLOWICKI SAID WE MAY NOT BE FLOODED WITH INQUIRIES BUT THE ONES WE GET WILL BE FROM THE RIGHT PEOPLE ADVERTISERS WILL WATCH CLOSELY FOR NEGATIVE REACTION FROM INTERNET USERS MR. DEARTH SAID HE ISN'T EXPECTING ANY NO ONE HAS TO GO IN THERE HE SAID IT'S A PASSIVE CONSUMER FRIENDLY APPROACH TO ADVERTISING THE COST TO LINCOLN MERCURY IS SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS A YEAR HE SAID SMITH BARNEY SHEARSON FORMED LAST YEAR WITH THE MERGER OF SMITH BARNEY HARRIS AND UPHAM AND SHEARSON LEHMAN BROTHERS PUT ITS ESTIMATED TWENTY MILLION DOLLAR AD ACCOUNT IN REVIEW A COMPANY SPOKESMAN SAID CONFIRMING REPORTS IN TRADE PUBLICATIONS INCUMBENT OGILVY AND MATHER A UNIT OF W. P. P. GROUP IS DEFENDING THE ACCOUNT THE SPOKESMAN SAID LESS THAN A YEAR AFTER WINNING IT FOLLOWING THE MERGER OTHER AGENCIES CONTACTED ABOUT TAKING PART IN THE REVIEW ARE B. B. D. O. AND D. D. B. NEEDHAM BOTH UNITS OF OMNICOM GROUP INTERPUBLIC GROUP'S MCCANN ERICKSON YOUNG AND RUBICAM AND SAATCHI AND SAATCHI'S C. M. E. KHBB INDUSTRY EXECUTIVES SAID SMITH BARNEY SHEARSON IS A UNIT OF TRAVELERS INCORPORATED NEW YORK HEFTY MOBIL CHEMICAL COMPANY A UNIT OF MOBIL CORPORATION MOVED ITS ESTIMATED SEVEN MILLION DOLLARS HEFTY PLASTIC TRASH BAGS FROM MINNEAPOLIS AGENCY FALLON MCELLIGOTT TO JORDAN MCGRATH CASE AND TAYLOR NEW YORK ACCORDING TO INDUSTRY EXECUTIVES MOBIL DECLINED TO COMMENT THE BAD NEWS IS AIRLINES ARE RAISING THE PRICE FOR QUOTE FREE QUOTE TICKETS THE GOOD NEWS IS MILES HAVE NEVER BEEN MORE ABUNDANT A. M. R.'S AMERICAN AIRLINES U. A. L.'S UNITED AIRLINES AND U. S. AIR A UNIT OF U. S. AIR GROUP HAVE ALL INCREASED REDEMPTION LEVELS FOR DOMESTIC COACH CLASS TICKETS STARTING NEXT YEAR TO TWENTY FIVE THOUSAND MILES FROM TWENTY THOUSAND MILES AMERICAN INCREASED THE COST OF ITS DOMESTIC FIRST CLASS TICKETS TO FORTY FIVE THOUSAND MILES FROM FORTY THOUSAND CONTINENTAL AIRLINES NORTHWEST AIRLINES AND AMERICA WEST AIRLINES WILL ALL FOLLOW SUIT PREDICTS RANDY PETERSEN EDITOR OF INSIDER FLYER WHY THE CHANGE THE NUMBER OF SO CALLED NON REVENUE PASSENGERS HAS BEEN RISING STEADILY AND STAND AT ABOUT SIX PERCENT RAISING THE MILEAGE REQUIREMENTS WILL PRESUMABLY RESULT IN FEWER FREE TRIPS MEANTIME PASSENGERS ARE ABLE TO ACCUMULATE MILES WITHOUT EVER STEPPING ON AN AIRPLANE AS AIRLINES INCREASE THEIR PARTNERSHIPS WITH HOTELS CRUISE LINES TELEPHONE COMPANIES CREDIT CARD ISSUERS AND OTHERS WE'VE NOT HAD ONE PRICE INCREASE IN THIRTEEN YEARS BUT LOOK AT THE VALUE WE DELIVER TO CUSTOMERS SAYS JAMES M. GUYETTE UNITED'S EXECUTIVE VICE PRESIDENT FOR MARKETING NOTING THAT THE CARRIER HAS TIE INS WITH FIVE CRUISE LINES FOUR CAR RENTAL COMPANIES AND HOTELS INCLUDING THE RITZ CARLTON AIRLINES ALSO ARE REJIGGERING PROGRAMS TO TARGET SPECIFIC MARKETS OR CUSTOMERS UNITED IS LOWERING THE PRICE OF TWO FREE TICKETS TO HAWAII TO ONE HUNDRED THOUSAND MILES FROM ONE HUNDRED TWENTY THOUSAND MILES NORTHWEST HAS ADDED FIVE HUNDRED MILE BONUSES FOR PASSENGERS WHO CONNECT AT ONE OF THE CARRIER'S HUBS DELTA AIR LINES IS REVAMPING ITS ENTIRE PROGRAM TENTATIVELY CALLED SKYMILES IT IS EXPECTED TO IMPOSE EXPIRATION DATES ON ITS MILES AND LOWER THE REDEMPTION LEVEL FOR A FREE DOMESTIC TICKET TO TWENTY FIVE THOUSAND MILES FROM THIRTY THOUSAND MILES EASTERN AIRLINES SHUT ITS OPERATIONS THREE YEARS AGO BUT A BITTER FEUD WITH MANY TRAVEL AGENTS IS JUST HEATING UP THE DISPUTE LAYS BARE THE OFTEN UNEASY RELATIONSHIP BETWEEN THE AIRLINE INDUSTRY AND ITS DISTRIBUTORS EASTERN SEEKING TO SETTLE ITS ESTATE IN BANKRUPTCY COURT RECENTLY SUED SEVEN THOUSAND TRAVEL AGENCIES ALLEGING THAT THEY WITHHELD PAYMENTS TO THE CARRIER ON TICKETS THEY SOLD THE CLAIMS SOME OF WHICH DATE TO NINETEEN EIGHTY EIGHT TOTAL ELEVEN POINT SIX MILLION DOLLARS EASTERN SAID IT WOULD SETTLE WITH EACH AGENCY FOR SEVENTY FIVE PERCENT OF ITS CLAIM WHILE THE AVERAGE CLAIM IS LESS THAN ONE THOUSAND SEVEN HUNDRED DOLLARS SOME AGENTS ARE CRYING FOUL THEY SAY THEY CAN'T PROVE THEIR INNOCENCE BECAUSE THEY DON'T KEEP RECORDS FOR MORE THAN A YEAR OR TWO THEY ALSO SAY EASTERN NEVER SENT THEM DEBIT MEMOS FOR UNPAID BILLS A POINT EASTERN DISPUTES WE GAVE THEM THOUSANDS AND THOUSANDS OF DOLLARS IN BUSINESS AND TO HAVE THEM BITE US IN THE NOSE LIKE THIS IS REALLY NASTY SAYS JOHN SZYMANSKI OWNER OF PARADISE TRAVEL SERVICE IN BOSTON WHICH EASTERN SAYS OWES SIX HUNDRED DOLLARS TO THE ESTATE MR. SZYMANSKI SAYS HE OWES NOTHING SO FAR ABOUT ONE THOUSAND FIVE HUNDRED AGENTS HAVE SETTLED AGENTS WHO DON'T PAY AND WANT TO AVOID COURT CAN EITHER SUBMIT TO BINDING ARBITRATION OR GO TO MEDIATION THE ASSOCIATION OF RETAIL TRAVEL AGENTS A TRADE GROUP IS URGING MEMBERS TO FIGHT EASTERN ON PRINCIPLE IF AGENTS PAY UP OTHER DEFUNCT AIRLINES WILL COME KNOCKING EASTERN SAYS IT IS OBLIGED BY THE COURT TO SETTLE ALL CLAIMS RELATED TO THE ESTATE MOREOVER HONEST AGENTS SHOULD BE GRATEFUL THAT EASTERN IS FORCING THE DEADBEATS TO PAY UP THE AIRLINE SAYS THIS MUST BE VIEWED AS LEVELING THE PLAYING FIELD SAYS JOHN SICILIAN EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF EASTERN HIGHER RENTAL RATES ON NINETEEN NINETY FOUR AUTOS MAY VEX CAR RENTAL CUSTOMERS BUT THE CARS ARE PROBABLY SAFER THAN EVER BEFORE NATIONAL CAR RENTAL SYSTEM A UNIT OF GENERAL MOTORS REPORTS THAT NINETY NINE PERCENT OF ITS FLEET HAS ANTILOCK BRAKES AND AUTOMATIC LOCKS COMPARED WITH THIRTY EIGHT PERCENT AND FORTY EIGHT PERCENT RESPECTIVELY TWO YEARS AGO AIRBAGS ARE POPPING UP SO TO SPEAK ALL OVER THE PLACE HERTZ SAYS EIGHTY PERCENT OF ITS FLEET HAS DRIVER SIDE BAGS THEY'RE IN TWO THIRDS OF THE CARS AT BUDGET RENT A CAR A UNIT OF BEECH HOLDINGS FIVE YEARS AGO YOU'D HAVE A DIFFICULT TIME FINDING AIRBAGS IN RENTAL CARS SAYS TOM HAWKES SENIOR VICE PRESIDENT OF FLEET OPERATIONS AT BUDGET RENTAL CAR COMPANIES SAY THEY WANT THEIR CUSTOMERS DRIVING THE SAFEST CARS POSSIBLE AND IN SOME CASES THAT MEANS PHASING OUT SMALLER CARS LACKING THE BEST SAFETY GIZMOS NATIONAL FOR EXAMPLE IS PARTING WITH G. M.'S GEO METROS AND SUNBIRDS BECAUSE THOSE MODELS DON'T HAVE ANTILOCK BRAKES BUT MORE THAN ALTRUISM IS AT WORK HERE FOR THE RENTAL COMPANIES THEY TYPICALLY SELL BACK THEIR CARS TO THE AUTO MAKERS WHO FIND FAR GREATER VALUE IN VEHICLES WITH SAFETY FEATURES THE ECONOMIC ANALYSIS IS REAL SIMPLE MR. HAWKES AT BUDGET SAYS QUOTE DO WE WANT CARS THAT CAR MAKERS WANT TO BUY BACK OR DO WE WANT CARS THAT WE'LL HAVE TO SELL ON OUR OWN QUOTE AVIS HAS EQUIPPED VEHICLES IN SEVERAL CITIES INCLUDING NEW YORK DETROIT AND SEATTLE WITH HEADLIGHTS THAT AUTOMATICALLY TURN ON WHEN THE ENGINE IS RUNNING IT'S ALSO TESTING IN TWO CITIES A NEW GLASS COATING THAT SUPPOSEDLY HELPS WIPERS SWEEP OFF WATER AND ALL OF AVIS'S NINETEEN NINETY FOUR MINIVANS WILL HAVE BUILT IN CHILD SAFETY SEATS IF TWO PEOPLE RENT A CAR A FEE TYPICALLY IS ASSESSED ON THE SECOND DRIVER UNLESS THAT PERSON IS A SPOUSE OR BUSINESS COLLEAGUE OUT AND ABOUT A PUBLICATION FOR GAY TRAVELERS APPLAUDS AVIS FOR BEING THE FIRST MAJOR RENTAL COMPANY TO WAIVE THE FEE FOR SAME SEX PARTNERS AMERICAN EXPRESS MAILS CARD MEMBERS A TWO PAGE CUSTOMER SATISFACTION SURVEY AND INCLUDES A DOLLAR BILL AS AN EXPRESSION OF GRATITUDE NORTHWEST AIRLINES IS DROPPING OUT OF AMERICAN EXPRESS'S MEMBERSHIP MILES PROGRAM WHEREBY CARD MEMBERS ACCUMULATE MILES BASED ON EXPENDITURES A LOOPHOLE IN A FEDERAL SMALL BUSINESS LENDING PROGRAM HELPED AN ENTREPRENEUR NAMED PETER VAN OOSTERHOUT TO CHARGE AMERICAN TAXPAYERS TWENTY EIGHT MILLION DOLLARS FOR HIS OWN BAD INVESTMENTS REGULATORS SAY MR. VAN OOSTERHOUT SIXTY TWO YEARS OLD WAS ALSO ABLE TO USE SOME OF THIS MONEY TO INVEST IN A TINY SALT LAKE CITY COMPANY WHOSE STOCK PRICE HAS SOARED EVEN AS IT HAS BEEN LOSING MONEY MR. VAN OOSTERHOUT GOT THE MAJOR PART OF HIS INVESTMENT FUNDS FROM THE SMALL BUSINESS INVESTMENT COMPANY PROGRAM IN WHICH PRIVATELY OWNED FIRMS KNOWN AS S. B. I. C.S USE A COMBINATION OF FEDERALLY GUARANTEED DEBT AND PRIVATE CAPITAL TO HELP FINANCE SMALL BUSINESSES CURRENTLY SOME TWO HUNDRED EIGHTY S. B. I. C.S HAVE ABOUT EIGHT HUNDRED FIFTY MILLION DOLLARS IN GOVERNMENT BACKED DEBT AS WELL AS TWO POINT THREE BILLION DOLLARS IN PRIVATE FUNDS THE S. B. I. C. PROGRAM WAS CREATED BY CONGRESS IN NINETEEN FIFTY EIGHT AS A WAY TO HELP PROMOTE THE GROWTH OF SMALL BUSINESSES TO GET S. B. I. C. STATUS INVESTMENT FIRMS HAVE TO APPLY TO THE SMALL BUSINESS ADMINISTRATION WHICH OVERSEES THE PROGRAM S. B. I. C.S HAVE HELPED HUNDREDS OF SMALL BUSINESSES GROW AND PROSPER INCLUDING APPLE COMPUTER INCORPORATED AND FEDERAL EXPRESS CORPORATION THE PROBLEM IS THAT DURING THE NINETEEN EIGHTIES WHEN MAKING RISKY INVESTMENTS WAS COMMONPLACE HUNDREDS OF INVESTMENTS WENT SOUR DOZENS OF S. B. I. C.S SANK AND TAXPAYERS WERE LEFT FOOTING A BILL THAT HAS BEEN ESTIMATED AT SEVERAL HUNDRED MILLION DOLLARS THE S. B. A. HAS HAD TO GO TO COURT IN RECENT YEARS TO SEIZE CONTROL OF SOME SIX DOZEN FAILING S. B. I. C.S IN ORDER TO SELL ASSETS AND TRY TO RECOVER AT LEAST SOME OF THE TAXPAYERS' MONEY PROBABLY NO SINGLE CASE BETTER EXEMPLIFIES THE ABUSES IN THE PROGRAM SAY S. B. A. OFFICIALS THAN THAT OF MR. VAN OOSTERHOUT AND HIS S. B. I. C. RIVER CAPITAL CORPORATION OF WHICH HE IS PRESIDENT AND HAS BEEN A MAJOR OWNER REGULATORS SAY MR. VAN OOSTERHOUT HAD BEEN A LEADING FIGURE IN THE S. B. I. C. INDUSTRY EVEN BEFORE HE BECAME PRESIDENT AND PART OWNER OF RIVER CAPITAL IN NINETEEN EIGHTY THREE HE WAS CHAIRMAN OF THE NATIONAL ASSOCIATION OF SMALL BUSINESS INVESTMENT COMPANIES HE HELPED ESTABLISH RIVER CAPITAL BASED IN SPRINGFIELD VIRGINIA A FEW YEARS LATER AND WITH ABOUT SEVEN MILLION DOLLARS IN PRIVATE FUNDS AND TWENTY EIGHT MILLION DOLLARS FROM THE GOVERNMENT HE DEVELOPED IT INTO ONE OF THE COUNTRY'S BIGGEST S. B. I. C.S FINANCING DOZENS OF COMPANIES THE S. B. A. WASN'T ABLE TO RECOVER ANY TAXPAYER DOLLARS IN THE CASE OF RIVER CAPITAL BEFORE IT COULD SEIZE CONTROL OF THE FOUNDERING FIRM RIVER CAPITAL FILED FOR PROTECTION UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE IN NINETEEN EIGHTY NINE AND THERE REGULATORS SAY IS THE LOOPHOLE CONGRESS DESIGNED THE S. B. I. C. PROGRAM TO MAKE THE GOVERNMENT A SUBORDINATE DEBTOR SO IN BANKRUPTCY REORGANIZATION PROCEEDINGS THE DEBTS OWED TO THE GOVERNMENT CAN BE CANCELED IF THE COURT FINDS THERE ISN'T ENOUGH MONEY TO PAY OFF ALL THE CREDITORS THE AVAILABILITY OF BANKRUPTCY OFFERS A QUOTE SWEET SITUATION FOR THE S. B. I. C. OWNER QUOTE IN WHICH THE QUOTE GOVERNMENT BECOMES THE CONVENIENT FALL GUY QUOTE SAYS MARTIN TECKLER DEPUTY GENERAL COUNSEL FOR THE S. B. A. IT IS A BIG PROBLEM BANKRUPTCY COURT ELIMINATED RIVER CAPITAL'S TWENTY EIGHT MILLION DOLLAR FEDERAL DEBT FOURTEEN OTHER S. B. I. C.S HAVE ALSO FILED FOR BANKRUPTCY IN THE PAST SEVERAL YEARS S. B. A. OFFICIALS SAY INCLUDING RIVER CAPITAL MORE THAN SEVENTY MILLION DOLLARS OF FEDERAL OBLIGATIONS HAVE BEEN OR ARE EXPECTED TO BE WIPED OUT SAYS MR. TECKLER FEDERAL OFFICIALS SAY THEY BELIEVE FRAUD KEPT THEM FROM SEEING THE S. B. I. C.'S PROBLEMS SOONER MR. VAN OOSTERHOUT IS FACING CRIMINAL CHARGES IN A CLEVELAND FEDERAL COURT ON FRAUD CONSPIRACY AND EXTORTION CHARGES STEMMING FROM HIS OPERATION OF RIVER CAPITAL HIS TRIAL IS EXPECTED TO BEGIN SOMETIME THIS YEAR MR. VAN OOSTERHOUT HAS PLEADED NOT GUILTY TO THE CHARGES NEITHER HE NOR HIS ATTORNEY RETURNED PHONE CALLS SEEKING COMMENT THE INDICTMENT CHARGES HIM WITH BEING PART OF A SCHEME TO MISREPRESENT THE FINANCIAL HEALTH OF RIVER CAPITAL AND ITS INVESTMENT PORTFOLIO IN ORDER TO KEEP FEDERAL MONEY FLOWING FOR INSTANCE TWO OF THE PORTFOLIO COMPANIES ALLEGEDLY CLAIMED EQUIPMENT THAT THEY DIDN'T ACTUALLY OWN ALONG WITH THREE OTHERS MR. VAN OOSTERHOUT ALSO ALLEGEDLY TRIED TO EXTORT MONEY FROM A BUSINESSMAN WHO SUPPOSEDLY WAS IN DEBT TO ONE OF THEM THE FOUR ARE CHARGED WITH SETTING FIRE TO THE BUSINESSMAN'S CAR AND THREATENING HIS WIFE ACCORDING TO THE INDICTMENT RIVER CAPITAL IS STILL IN BUSINESS THOUGH IT IS NO LONGER IN THE S. B. I. C. PROGRAM THE COMPANY EMERGED FROM BANKRUPTCY IN NINETEEN NINETY ONE STILL IN POSSESSION OF SOME OF ITS FEDERALLY BACKED INVESTMENTS ONE OF THOSE INVESTMENTS HAS TURNED INTO A WINNER FOR A ONE MILLION DOLLAR INVESTMENT STARTING IN THE EARLY NINETEEN EIGHTIES RIVER CAPITAL'S PREDECESSOR WHICH MR. VAN OOSTERHOUT HELPED OPERATE PICKED UP ABOUT ONE POINT SEVEN MILLION SHARES OF ALANCO ENVIRONMENTAL RESOURCES CORPORATION A SALT LAKE CITY COMPANY THAT OWNS SOME DORMANT MINES AND MANUFACTURES POLLUTION CONTROL EQUIPMENT MR. VAN OOSTERHOUT HAS BEEN AN ALANCO DIRECTOR SINCE NINETEEN EIGHTY THREE A WOMAN WHO ANSWERED THE PHONE AT RIVER CAPITAL'S OFFICE SAID ALL QUESTIONS WOULD HAVE TO BE DIRECTED TO MR. VAN OOSTERHOUT ALANCO'S STOCK MARKET PERFORMANCE CONTRASTS SHARPLY WITH ITS FINANCIAL PERFORMANCE WITH NINETEEN POINT FOUR MILLION SHARES OUTSTANDING ITS MARKET VALUE HAS SURGED TO ABOUT NINETY MILLION DOLLARS MORE THAN A THREEFOLD INCREASE IN THE PAST YEAR YET IN THE PAST FOUR YEARS THE COMPANY HAS REPORTED ACCUMULATED LOSSES OF EIGHT MILLION DOLLARS INCLUDING A FOUR POINT ONE MILLION DOLLAR LOSS FOR FISCAL NINETEEN NINETY THREE ENDED JUNE THIRTIETH REVENUES FOR THAT YEAR WERE JUST TEN THOUSAND NINE HUNDRED EIGHTY SEVEN DOLLARS ALANCO HOWEVER HAS PRODUCED A STEADY STREAM OF UPBEAT PRESS RELEASES PARTICULARLY CONCERNING VARIOUS POLLUTION CONTROL DEALS IN CHINA INCLUDING ONE POTENTIAL MULTIBILLION DOLLAR CONTRACT ALANCO HAS ALSO ANNOUNCED A SERIES OF FINANCING ARRANGEMENTS OVER RECENT YEARS MANY OF WHICH NEVER CAME TO PASS AND ONE THAT DID A SEVENTY TWO MILLION DOLLAR CREDIT LINE WAS ARRANGED BY ONE MARIO RENDA THROUGH A NEW YORK CITY FIRM CALLED FINANCIAL SECURITY CORPORATION IN THE EARLY NINETEEN EIGHTIES MR. RENDA WAS A DEPOSIT BROKER WHO PLACED BILLIONS OF DOLLARS OF DEPOSITS IN THRIFTS AND BANKS AROUND THE U. S. HE WAS CONVICTED OR PLEADED GUILTY IN NINETEEN EIGHTY SEVEN IN THREE DIFFERENT COURTS TO CRIMES RANGING FROM BANK FRAUD TO RACKETEERING TO TAX EVASION PROSECUTORS AND INVESTIGATORS CONTENDED THAT MR. RENDA'S CRIMES CONTRIBUTED TO THE DEMISE OF SEVERAL DOZEN THRIFTS AND BANKS PARTLY BY ARRANGING FOR FRAUDULENT LOANS BRENT DYER FINANCIAL SECURITY'S PRESIDENT DIDN'T RETURN REPEATED PHONE CALLS A WOMAN ANSWERING THE PHONE AT FINANCIAL SECURITY IDENTIFIED MR. RENDA AS A VICE PRESIDENT OF THE COMPANY MR. RENDA DENIES THE TITLE BUT ADMITS HE WAS FOR A TIME IN NINETEEN NINETY TWO ALANCO'S MARKETING DIRECTOR AN ALANCO SPOKESMAN SAYS THE S. E. C. HAS BEEN INVESTIGATING THE COMPANY'S ANNOUNCEMENTS BUT THAT THE COMPANY HAS DONE NOTHING WRONG S. E. C. OFFICIALS DECLINE TO COMMENT THE S. B. A. HAS BEEN URGING CONGRESS TO BAR S. B. I. C.S FROM SEEKING BANKRUPTCY PROTECTION A BANKRUPTCY REFORM BILL CONTAINING SUCH A MEASURE PASSED THE SENATE LAST YEAR BUT DIED IN THE HOUSE OF REPRESENTATIVES THOUGH THE S. B. A. HAS CHANGED ITS S. B. I. C. REGULATIONS TO GIVE IT MORE PROTECTION AGAINST BANKRUPTCY LOSSES THE AGENCY STILL BELIEVES CONGRESSIONAL ACTION IS NECESSARY SAYS MR. TECKLER THE S. B. A.'S DEPUTY GENERAL COUNSEL OTHERWISE S. B. I. C.S COULD CONTINUE TO STICK IT TO THE GOVERNMENT MR. TECKLER SAYS THOR INDUSTRIES INCORPORATED SAID IT RECEIVED ITS LARGEST EVER ORDER VALUED AT ABOUT FIFTEEN MILLION DOLLARS FROM GO VACATIONS INCORPORATED A RECREATIONAL VEHICLE RENTAL CONCERN BASED IN TORONTO TO BUILD FOUR HUNDRED FIFTY MOTOR HOMES THE MAKER OF RECREATIONAL VEHICLES AND SMALL AND MIDSIZE BUSES SAID THE VEHICLES WILL BE BUILT AT ITS FOUR WINDS FACILITY IN ELKHART INDIANA AND WILL BE SHIPPED TO GO VACATIONS' TEN RENTAL CENTERS IN THE U. S. AND CANADA BEGINNING NEXT MONTH THE ORDER WILL INCREASE PRODUCTION OF THE COMPANY'S CLASS C. MOTOR HOMES BY ABOUT TWENTY PERCENT RUSSIANS ALEXANDER GOLUBEV AND SERGEI KLEVCHENYA BOTH BREAKING THE OLYMPIC RECORD SWEPT THE TOP TWO MEDALS IN MEN'S FIVE HUNDRED METER SPEED SKATING DAN JANSEN OF THE U. S. THE WORLD RECORD HOLDER SLIPPED AND FINISHED EIGHTH MR. GOLUBEV WON IN THIRTY SIX POINT THREE THREE FOLLOWED BY MR. KLEVCHENYA IN THIRTY SIX POINT THREE NINE BOTH BROKE THE OLYMPIC MARK OF THIRTY SIX POINT FOUR FIVE SET BY UWE JENS MEY OF THE FORMER EAST GERMANY IN CALGARY IN NINETEEN EIGHTY EIGHT MANABU HORII OF JAPAN WAS THE BRONZE MEDALIST IN THIRTY SIX POINT FIVE THREE MR. JANSEN WHOSE BEST OLYMPIC FINISH IS A FOURTH IN THE FIVE HUNDRED IN NINETEEN EIGHTY FOUR AND AGAIN IN NINETEEN NINETY TWO IS THE ONLY MAN EVER TO SKATE FASTER THAN THIRTY SIX SECONDS IN THE FIVE HUNDRED HE SLIPPED ON THE HOME TURN OF YESTERDAY'S RACE BRUSHING HIS HAND AGAINST THE ICE QUOTE IT'S A BIT OF A SHOCK TO ME QUOTE MR. JANSEN SAID I'M NOT MAKING EXCUSES BUT IT'S NOT A PLACE I'VE SLIPPED BEFORE I WOULD HAVE WON BY QUITE A BIT IF I DIDN'T SLIP MR. JANSEN AND SEVERAL OTHER SKATERS SAID THE ICE IN THE VIKING SHIP OLYMPIC HALL WAS HARDER THAN THEY HAD SEEN IT A CONDITION THEY DIDN'T LIKE THOMAS ALSGAARD OF NORWAY WON THE MEN'S THIRTY KILOMETER FREESTYLE CROSS COUNTRY SKIING RACE IN A TIME OF ONE HOUR TWELVE MINUTES AND TWENTY SIX POINT FOUR SECONDS BEATING HIS TEAMMATE BJORN DAHLIE BY FORTY SEVEN POINT TWO SECONDS MIKA MYLLYLA WHO IS LEADING FINLAND'S REJUVENATED MEN'S TEAM TOOK THE BRONZE ONE FORTY SEVEN BEHIND THE WINNER MR. ALSGAARD TWENTY TWO YEARS OLD TOOK THE LEAD ONLY A FEW KILOMETERS INTO THE RACE AND HELD A FIVE POINT TWO SECOND ADVANTAGE OVER MR. DAHLIE AT THE TWELVE KILOMETER CHECKPOINT MR. ALSGAARD WHO WAS MAKING HIS OLYMPIC DEBUT INCREASED IT TO TEN SECONDS AT THE HALFWAY STAGE AND AFTER TWENTY TWO POINT ONE KILOMETERS MR. DAHLIE TRAILED BY THIRTY FOUR POINT FIVE SECONDS BY THEN MR. DAHLIE FIGURED HE HAD LOST THE RACE I FELT I WOULD NOT BE ABLE TO CATCH HIM WHEN HE LED BY HALF A MINUTE SAID MR. DAHLIE A TRIPLE GOLD MEDALIST IN THE NINETEEN NINETY TWO OLYMPICS AT ALBERTVILLE I WAS VERY IMPRESSED BY THOMAS'S PERFORMANCE TODAY MR. ALSGAARD A FREESTYLE SPECIALIST SAID HE NEVER EXPECTED TO WIN I THOUGHT I HAD A CHANCE TO MEDAL BUT ONLY IF EVERYTHING WORKED ONE HUNDRED PERCENT HE SAID QUOTE BUT I NEVER EVEN DREAMED OF WINNING THE GOLD MEDAL COMING INTO THE SECOND LAP I KNEW I HAD A CHANCE TO WIN GERMANY'S GEORGE HACKL BECAME THE FIRST SOLO LUGER TO REPEAT AS AN OLYMPIC GOLD MEDALIST WHEN HE EDGED AUSTRIAN MARKUS PROCK BY THE SMALLEST MARGIN IN OLYMPIC LUGE HISTORY THE DIFFERENCE BETWEEN THE TWO RIVALS WAS ZERO POINT ZERO ONE THREE SECOND ROUGHLY THIRTEEN INCHES MR. HACKL'S TIME FOR THE FOUR RUNS WAS THREE MINUTES TWENTY ONE POINT FIVE SEVEN ONE SECONDS DUNCAN KENNEDY FOURTH AFTER TWO RUNS AND BIDDING TO BECOME THE FIRST MALE AMERICAN LUGER TO WIN AN OLYMPIC MEDAL CRASHED NEAR THE END OF HIS THIRD RUN WHILE TRAVELING AT NEARLY EIGHTY MPH AND CAREENED OFF BOTH WALLS SENDING SLIVERS OF ICE THROUGH THE AIR MR. HACKL HAD TO MAKE UP ZERO POINT ZERO FOUR EIGHT OF A SECOND IN THE FOURTH AND FINAL RUN AFTER THE THIRD RUN I KNEW I COULD STILL MAKE IT BECAUSE FIVE HUNDREDTHS OF A SECOND IS LIKE NOTHING MR. HACKL SAID IT WAS LIKE A CRIME NOVEL THERE WAS SO MUCH SUSPENSE IN A REPEAT OF THE ALBERTVILLE GAMES MR. PROCK HAD TO SETTLE FOR THE SILVER AGAIN ITALY'S ARMIN ZOGGELER BRUSHED THE WALL ON HIS FIRST RUN OF THE DAY LOSING VALUABLE TIME BUT HELD ON FOR THE BRONZE MEDAL LASSE KJUS REKINDLED HOPES OF AN ALPINE VICTORY FOR NORWAY WHEN HE WON THE DOWNHILL PORTION OF THE ALPINE COMBINED EDGING AMERICANS KYLE RASMUSSEN AND TOMMY MOE MR. KJUS HAD A TIME OF ONE MINUTE THIRTY SIX POINT NINE FIVE SECONDS MR. RASMUSSEN WAS TIMED IN ONE THIRTY SIX AND MR. MOE THE OLYMPIC DOWNHILL CHAMPION CLOCKED ONE THIRTY SEVEN THE COMBINED MEDALS ARE BASED ON AGGREGATE RESULTS OF A DOWNHILL RACE AND A SLALOM THAT WILL BE RUN FEBRUARY TWENTY FIFTH THE CZECH REPUBLIC DEFEATED AUSTRIA SEVEN TO THREE THE CZECHS WHO ARE EXPECTED TO CONTEND FOR THE GOLD MEDAL ARE ONE TO ONE AFTER AN EARLIER UPSET BY FINLAND AUSTRIA FELL TO ZERO TO TWO GERMANY DEFEATED NORWAY BY A SCORE OF TWO TO ONE TO GO TO TWO TO ZERO NORWAY HAS LOST BOTH OF ITS GAMES AETNA LIFE AND CASUALTY COMPANY EXPECTS TO REPORT OPERATING PROFIT OF MORE THAN SIX DOLLARS AND FIFTY CENTS A SHARE THIS YEAR COMPANY CHAIRMAN RONALD COMPTON TOLD ANALYSTS THE FIGURE IS BETTER THAN EXPECTED BY STOCK ANALYSTS FOLLOWING MR. COMPTON'S REMARKS AETNA STOCK ROSE TO SIXTY FOUR POINT THREE SEVEN FIVE DOLLARS UP ONE POINT SIX TWO FIVE DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE INSURER IN HARTFORD CONNECTICUT RECENTLY ANNOUNCED A RESTRUCTURING THAT INCLUDES REDUCING ITS WORK FORCE BY FOUR THOUSAND OR TEN PERCENT AND GETTING OUT OF TWO PENSION BUSINESSES SINGLE PREMIUM ANNUITIES AND GUARANTEE INVESTMENT CONTRACTS THE BENEFITS OF THOSE ACTIONS WILL TRANSLATE INTO HIGHER OPERATING PROFIT OPERATING PROFIT EXCLUDES CAPITAL GAINS ON INVESTMENTS AND IS VIEWED BY INSURANCE ANALYSTS AS A BETTER MEASURE OF EARNINGS POWER THAN NET INCOME LAST YEAR AETNA EARNED FIVE DOLLARS AND FORTY NINE CENTS A SHARE OR SIX HUNDRED TEN MILLION DOLLARS FROM OPERATIONS QUOTE BARRING ABNORMALLY HIGH CATASTROPHE LOSSES AND OTHER UNUSUAL CHARGES WE EXPECT NINETEEN NINETY FOUR OPERATING EARNINGS TO BE SOMEWHAT NORTH OF SIX DOLLARS AND FIFTY CENTS PER SHARE QUOTE MR. COMPTON TOLD ANALYSTS AT A MEETING IN NEW YORK THE PER SHARE FIGURE INDICATES SEVEN HUNDRED TWENTY FIVE MILLION DOLLARS IN OPERATING PROFIT FOR NINETEEN NINETY FOUR MR. COMPTON EMPHASISED THAT THE COMPANY'S INDIVIDUAL BUSINESS SEGMENTS WILL POST BETTER RESULTS ESPECIALLY IN COMMERCIAL PROPERTY AND CASUALTY AETNA IS IN THE MIDST OF A RESTRUCTURING DESIGNED TO MAKE IT MORE PROFITABLE FOR YEARS ITS EARNINGS HAVE SUFFERED FROM SOURED REAL ESTATE INVESTMENTS COSTLY CLAIMS ON POLLUTION AND ASBESTOS AS WELL AS HIGH EXPENSES ON A NET BASIS THE COMPANY HAD A LOSS OF THREE HUNDRED SIXTY SIX MILLION DOLLARS OR THREE DOLLARS AND TWENTY NINE CENTS A SHARE AGAINST PROFIT OF FIFTY SIX MILLION DOLLARS OR FIFTY ONE CENTS A SHARE IN NINETEEN NINETY TWO IN THE FOURTH QUARTER AETNA TOOK A ONE POINT TWO EIGHT BILLION DOLLAR CHARGE TO PAY FOR THE LAYOFFS AND THE COSTS OF GETTING OUT OF THE PENSION BUSINESSES WITH THE CLINTON ADMINISTRATION MOVING TO SLAP TRADE SANCTIONS ON JAPAN MOST OF CORPORATE AMERICA INCLUDING SOME COMPANIES EXASPERATED WITH JAPAN IS CALLING FOR CAUTION AND CALM PREDICTABLY FIRMS HURT BY JAPANESE COMPETITION WERE MORE INCLINED TO SUPPORT RETALIATION BY AND LARGE THOUGH U. S. BUSINESSES EVEN THOSE WHO APPLAUD THE CLINTON ADMINISTRATION'S HANG TOUGH STANCE DON'T WANT A TRADE WAR THAT THREATENS TO FLARE OUT OF CONTROL SOME EXECUTIVES SAW THE RISING YEN AS A WAY TO SOLVE THE TRADE PROBLEM QUOTE PEACEFULLY QUOTE BY GIVING JAPANESE CONSUMERS MORE BUYING POWER AND RAISING THE COST OF JAPANESE GOODS IN THE U. S. BE CAUTIOUS SAID JOSEPH MONTGOMERY CHIEF EXECUTIVE OFFICER AT CANNONDALE CORPORATION A GEORGETOWN CONNECTICUT OFF ROAD BICYCLE MAKER THERE'S GOT TO BE A LOT OF DIFFERENT WAYS TO WRINKLE THIS WORM AROUND EVEN GIDDINGS AND LEWIS INCORPORATED A BIG U. S. MACHINE TOOL MAKER WHICH HASN'T MADE A MAJOR SALE IN JAPAN SINCE NINETEEN SEVENTY FOUR ISN'T PUSHING ANY SPECIFIC RETALIATION PLANS THE FOND DU LAC WISCONSIN COMPANY ONLY SAYS THAT THE U. S. SHOULD CLOSELY LOOK AT THE OPTIONS AVAILABLE TO IT INDUSTRIES HURT BY JAPANESE EXPORTS PARTICULARLY THE AUTO COMPANIES TEND TO TAKE A TOUGHER LINE JAPAN SEEMS DETERMINED NOT TO ALLOW A MEANINGFUL OPENING OF THEIR MARKET SAID ROBERT J. EATON CHRYSLER CORPORATION CHAIRMAN HIS COMPANY WANTS TO SEE HIGHER TARIFFS ON JAPANESE MINIVANS AND SPORT UTILITY VEHICLES STEVEN WOLF A VICE PRESIDENT AT THE RIVER OAKS CHRYSLER SLASH PLYMOUTH DEALERSHIP IN HOUSTON SAID HE WOULD LIKE TO SEE TARIFFS SLAPPED ON JAPANESE AUTOS AND OTHER PRODUCTS WHICH HE BELIEVES ARE DUMPED IN THE U. S. CHRYSLER SELLS CARS TO MAKE A PROFIT TOYOTA MOTOR CORPORATION AND THE JAPANESE SELL CARS TO MAINTAIN MARKET SHARE QUOTE MR. WOLF COMPLAINED OTHERS JOINED CHRYSLER IN THE CALL FOR RETALIATION WE WOULD BE HAWKS SAID CHRIS DOLAN MANAGER OF PLANNING AND DEVELOPMENT AT GUARDIAN INDUSTRIES CORPORATION WHICH HAS BEEN SELLING GLASS TO THE JAPANESE AUTOMOTIVE AND CONSTRUCTION MARKET FOR SEVERAL YEARS WE SUPPORT THE TOUGH STANCE THE ADMINISTRATION HAS TAKEN THAT'S THE ONLY WAY WE WILL EVENTUALLY PRY OPEN THE JAPANESE MARKET HE SAID ADDING THAT GUARDIAN SALES IN JAPAN ARE EXTREMELY SMALL COMPARED TO THE PRICE OF DOING BUSINESS THERE CRAY RESEARCH INCORPORATED THE BIG U. S. SUPERCOMPUTER MAKER SAID THE CLINTON ADMINISTRATION DID EXACTLY THE RIGHT THING IN BREAKING OFF TALKS CRAY OFFICIALS SAID THE COMPANY HAS NEVER HAD A FAIR SHOT IN COMPETITIONS WITH FIRMS SUCH AS HITACHI LIMITED N. E. C. CORPORATION AND FUJITSU LIMITED BUT PAUL DILLINGHAM VICE PRESIDENT OF GOVERNMENT OPERATIONS DISCOURAGED U. S. RETALIATION BECAUSE IT WOULD BE A VERY VERY SERIOUS STEP FOR THE U. S. GOVERNMENT TO TAKE IT WOULD IMPACT A VARIETY OF INDUSTRIES QUOTE MEANWHILE JAPAN SIGNALED NEW OPENNESS TO U. S. SUPERCOMPUTER MAKERS A GOVERNMENT RESEARCH INSTITUTE ANNOUNCED YESTERDAY THAT IT WOULD BUY MACHINES FOR A SUPERCOMPUTER CENTER FROM SEVERAL U. S. COMPANIES LED BY INTERNATIONAL BUSINESS MACHINES CORPORATION JAPANESE OFFICIALS SAID THE CONTRACTS MEAN SIX OF THE PAST ELEVEN PUBLIC SUPERCOMPUTER BIDS HAVE GONE TO U. S. MAKERS HIGH TECH COMPANIES THAT COUNT ON JAPANESE IMPORTS GREW NERVOUS THAT THE TRADE FRACAS WILL BE COSTLY STEVEN RAYMUND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TECH DATA CORPORATION A CLEARWATER FLORIDA WHOLESALE DISTRIBUTOR OF MICROCOMPUTER HARDWARE AND SOFTWARE NOTED THAT ABOUT TEN PERCENT TO TWENTY PERCENT OF THE PRODUCTS THE COMPANY SELLS HAVE A JAPANESE LABEL WHILE AS MUCH AS A THIRD CONTAIN JAPANESE PARTS IF WE CAN'T GET THEIR PRODUCTS ANYMORE IT'S GOING TO BRING OUR INDUSTRY TO ITS KNEES HE WARNED MR. RAYMUND SAID IT'S FOOLISH FOR THE U. S. TO RETALIATE AGAINST THE JAPANESE NOW BECAUSE OF THE INTERNAL POLITICAL STRAIN THE JAPANESE PRIME MINISTER IS CLINGING TO POWER BY HIS FINGERTIPS HE REASONED THE GUY IS GOING TO HAVE TO DIG IN HIS HEELS TO RETAIN RESPECT AT HOME THE U. S. IS CHOOSING THE WORST POSSIBLE MOMENT TO CONFRONT JAPANESE LEADERSHIP FOR HIS PART PRIME MINISTER MORIHIRO HOSOKAWA PICKED UP SUPPORT AT HOME FOR HIS DEFIANT STANCE IN PREVIOUS TRADE SPATS THE U. S. WAS ABLE TO WIN ALLIES IN SOME KEY JAPANESE CONSTITUENCIES SUCH AS CONSUMERS SUFFERING FROM THE HIGH PRICES THAT RESULT FROM IMPORT BARRIERS BUT THIS TIME THE U. S. FAILED TO CONNECT WITH ANY JAPANESE SUPPORTERS JAPAN'S POWERFUL BUREAUCRATS IN PARTICULAR ARE REJOICING OVER THE COLLAPSE OF THE FRAMEWORK TRADE TALKS WHICH THEY HAD OPPOSED FROM THE START WE'RE SATISFIED SAID ONE MANDARIN WHO JUST RETURNED FROM WASHINGTON INSURANCE EXECUTIVES HAD CLOSELY WATCHED THE TRADE TALKS HOPING FOR BREAKTHROUGHS THAT WOULD OPEN JAPAN'S MARKET THOUGH DISAPPOINTED BY THE COLLAPSE OF TALKS EDWARD HANWAY PRESIDENT OF CIGNA INTERNATIONAL PROPERTY AND CASUALTY A DIVISION OF PHILADELPHIA BASED CIGNA CORPORATION URGED CAUTION QUOTE I'M NOT GUNG HO LET'S SANCTION THE HELL OUT OF THEM QUOTE HE SAID CIGNA HAS BEEN SELLING INSURANCE IN JAPAN SINCE THE EARLY NINETEEN TWENTIES SCOTT MONTGOMERY CHAIRMAN OF JAPAN OPERATIONS FOR CANNONDALE THE BICYCLE MAKER ARGUED SANCTIONS ARE POLITICALLY POWERFUL BUT ECONOMICALLY WON'T MAKE A HILL OF BEANS I WOULD MUCH RATHER SEE THE YEN AT A ONE HUNDRED YEN TO THE DOLLAR THAN TRADE SANCTIONS CANNONDALE EXECUTIVES EXPECT THE COMPANY'S SALES IN JAPAN TO ACCOUNT FOR ABOUT FIVE MILLION DOLLARS OF ITS ESTIMATED ONE HUNDRED FIVE MILLION DOLLARS IN TOTAL SALES FOR THE FISCAL YEAR ENDING JUNE THIRTIETH WALL STREET APPEARS TO BE FOLLOWING THE SENTIMENT OF MANY CORPORATE EXECUTIVES RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK CORPORATION SAID THE RISE OF THE YEN TO ABOUT ONE HUNDRED TWO YEN TO THE DOLLAR DEMONSTRATES THE MARKET'S EXPECTATION THAT THE ADMINISTRATION WILL WANT TO USE THE STRONG YEN TO PRY MORE ACTION OUT OF THE JAPANESE ON THE TRADE SIDE SHEVACH SARAF CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF SOLITRON DEVICES INCORPORATED A MAKER OF SEMICONDUCTORS AND OTHER COMPONENTS USED BY THE DEFENSE AND AEROSPACE INDUSTRIES WARNED THAT THERE WILL BE NO MOVEMENT UNLESS THE U. S. SHOWS THEM JAPAN A STRONG HAND BUT THE HEAD OF THE WEST PALM BEACH FLORIDA CONCERN SAID HE PERSONALLY OPPOSES RETALIATION PROTECTIONISM PROTECTS INDUSTRY IN THIS COUNTRY CONTINUING THE WAY IT'S GOING NOW INSTEAD OF TRYING TO EXCEL HE SAYS THE WAY FOR THE U. S. TO RETALIATE IS TO SUBSIDIZE AND PROMOTE NEW PRODUCT DEVELOPMENT AND AUTOMATION SO U. S. MANUFACTURERS COULD BECOME MORE COMPETITIVE WITH THE JAPANESE ON QUALITY HEATING OIL FUTURES PLUNGED MORE THAN THREE CENTS A GALLON ON THE PROMISE OF A THAW IN THE FRIGID WEATHER IN THE NORTHEAST U. S. THAT PULLED THE PROPS FROM UNDER WORLD OIL MARKETS AND PRICES OF CRUDE OIL AND OTHER FUELS ALSO PLUMMETED IN U. S. FUTURES TRADING CRUDE OIL FOR MARCH DELIVERY FELL FIFTY NINE CENTS TO SETTLE AT FOURTEEN DOLLARS AND THIRTEEN CENTS A BARREL THAT WAS THE LOWEST SETTLEMENT PRICE SINCE LATE DECEMBER FOR THE SO CALLED PROMPT MONTH CRUDE TRADED ON THE NEW YORK MERCANTILE EXCHANGE IN U. S. OIL FIELDS MEANWHILE SOME REFINERS WERE REDUCING THE PRICES THEY POST FOR WEST TEXAS INTERMEDIATE THE U. S. BENCHMARK CRUDE BY FIFTY CENTS A BARREL AND ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE FUTURES CLOSED YESTERDAY BETWEEN THIRTY CENTS AND FORTY CENTS A BARREL LOWER PUBLISHED REPORTS THAT SAUDI ARABIA WON'T COMMIT TO A SECOND QUARTER CUT IN ITS OIL PRODUCTION DESPITE WEEKEND APPEALS FROM OTHERS IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CONTRIBUTED TO THE DECLINES IN CRUDE PRICES QUOTE UNTIL OPEC READDRESSES THE OIL OVERHANG THAT'S ANTICIPATED FOR THE SECOND QUARTER THE MARKET IS GOING TO BE UNDER PSYCHOLOGICAL PRESSURE QUOTE SAID PETER BEUTEL PRESIDENT OF CAMERON HANOVER INCORPORATED A NEW YORK BASED ENERGY RESEARCH AND TRADING FIRM BUT HE AND OTHERS AGREED THAT YESTERDAY'S SELL OFF IN WORLD OIL MARKETS WAS MOSTLY TRIGGERED BY A SUDDEN WEAKENING IN U. S. HEATING OIL FUTURES VERY COLD WEATHER OVER THE U. S. IN RECENT WEEKS HAD DRAINED MUCH OF THE EXCESS FROM FUEL INVENTORIES AND HAD HELD A FLOOR UNDER HEATING OIL PRICES BUT THE HEATING OIL MARKET OFTEN SOFTENS THIS TIME OF THE YEAR IN THE U. S. BETWEEN VALENTINE'S DAY AND PRESIDENTS DAY AS TRADERS BEGIN LOOKING AHEAD TO SPRING AND REPOSITIONING THEMSELVES FOR THE SHIFT IN DEMAND FOR FUELS YESTERDAY HEATING OIL PRICES BEGAN FALLING STEEPLY AFTER A NATIONAL WEATHER SERVICE FORECAST OF WARMER TEMPERATURES IN THE NORTHEAST AFTER THE WEEKEND'S HEAVY SNOWFALL IN HEAVY TRADING ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR MARCH DELIVERY DROPPED THREE POINT ONE SIX CENTS A GALLON TO SETTLE AT FORTY SEVEN POINT EIGHT TWO CENTS APRIL HEATING OIL WAS ONE POINT EIGHT SIX CENTS LOWER AT FORTY FOUR POINT THREE CENTS A GALLON IN NATURAL GAS FUTURES TRADING THE MARCH CONTRACT FELL TEN POINT FOUR CENTS TO SETTLE AT TWO POINT TWO FIVE TWO DOLLARS A MILLION BRITISH THERMAL UNITS THE APRIL GAS CONTRACT WAS DOWN FIVE POINT SIX CENTS TO TWO DOLLARS AND EIGHTEEN CENTS A MILLION B. T. U.S GRAINS AND SOYBEANS CORN PRICES SETTLED MIXED IN THE WAKE OF THE AGRICULTURE DEPARTMENT'S WIDELY EXPECTED DECISION TO FURTHER REDUCE ITS ESTIMATE OF THE U. S. CORN STOCKPILE WHICH IS ALREADY AT ITS TIGHTEST LEVEL SINCE THE MID NINETEEN SEVENTIES THE DEPARTMENT LAST WEEK CUT ITS ONE MONTH OLD FORECAST OF THE AUGUST THIRTY FIRST CORN SUPPLY TO SEVEN HUNDRED SEVENTY SEVEN MILLION BUSHELS FROM EIGHT HUNDRED TWO MILLION BUSHELS THE U. S. HAD TWO POINT ONE BILLION BUSHELS OF CORN LEFT OVER IN AUGUST NINETEEN NINETY THREE THE GRAIN SUPPLY REACHES ITS LOWEST LEVEL OF THE YEAR IN AUGUST BECAUSE THE HARVEST BEGINS TO REPLENISH SUPPLIES IN SEPTEMBER IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY SLIPPED ZERO POINT TWO FIVE CENTS A BUSHEL TO SETTLE AT TWO DOLLARS AND NINETY EIGHT CENTS A BUSHEL SUPPLIES ARE TIGHT BECAUSE RECORD RAIN AND FLOODING ACROSS THE MIDWEST LAST YEAR REDUCED THE CORN HARVEST BY THIRTY THREE PERCENT FARMERS IN STATES SUCH AS WISCONSIN WILL HAVE TO IMPORT UNUSUALLY LARGE AMOUNTS OF CORN FROM OTHER STATES IN ORDER TO FEED THEIR LIVESTOCK SPOT SHORTAGES ARE ALSO EXPECTED IN SEVERAL COUNTIES ACROSS THE MIDWEST THIS YEAR PRECIOUS METALS THE DOLLAR'S SWOON AGAINST THE JAPANESE YEN WAS A BOOST TO PRECIOUS METALS PRICES BUT NOT AS MUCH AS MIGHT HAVE BEEN EXPECTED ANALYSTS SAID AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY ROSE THREE DOLLARS AND NINETY CENTS TO THREE HUNDRED EIGHTY FIVE DOLLARS AND SIXTY CENTS AN OUNCE AND THE PRICE OF THE SILVER CONTRACT FOR MARCH DELIVERY WAS UP NINE POINT FIVE CENTS TO FIVE DOLLARS AND THIRTY FIVE CENTS AN OUNCE HOWEVER THE METALS ARE NOT RECEIVING THE AMOUNT OF SUPPORT YOU MIGHT EXPECT SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH GIVEN THE MAGNITUDE OF MOVEMENT IN THE YEN AND EUROPEAN CURRENCIES THE RESPONSE OF PRECIOUS METALS WAS TAME IT MAKES ME SUSPECT THAT THERE WON'T BE ANY REALLY STRONG RALLIES BASED ON CURRENCY SITUATIONS THE PRICE OF GOLD HAS BEEN MIRED IN A THREE HUNDRED EIGHTY DOLLAR TO THREE HUNDRED NINETY DOLLAR AN OUNCE TRADING RANGE FOR WEEKS SLUMPING BONDS AND A WEAKER DOLLAR PRESSURED EQUITIES BUT SMALL CAP STOCKS HUNG ON TO GAINS THROUGHOUT THE SESSION THE RUSSELL TWO THOUSAND INDEX OF SMALL CAPITALIZATION STOCKS CLOSED UP ZERO POINT THREE ZERO POINT OR ZERO POINT ONE ONE PERCENT TO FINISH AT TWO HUNDRED SIXTY THREE POINT ONE NINE THE NASDAQ COMPOSITE INDEX ROSE FOUR POINT OH SIX POINTS OR ZERO POINT FIVE TWO PERCENT TO SEVEN HUNDRED EIGHTY FIVE POINT FOUR FIVE NEITHER INDEX MOVED LOWER DURING THE DAY DESPITE THE NEGATIVE EXTERNAL FORCES ON FRIDAY THE RUSSELL LOST ONE POINT TWO FIVE POINTS AND THE NASDAQ COMPOSITE PULLED BACK TWO POINT OH THREE POINTS IN A SESSION ABBREVIATED BY A MAJOR EAST COAST SNOWSTORM ADVANCING NASDAQ ISSUES TOPPED DECLINERS ONE THOUSAND SIX HUNDRED THIRTY TWO TO ONE THOUSAND FOUR HUNDRED SIXTY NINE ON NASDAQ NATIONAL MARKET VOLUME OF TWO HUNDRED TWENTY FIVE MILLION FOUR HUNDRED FIFTEEN THOUSAND THREE HUNDRED SHARES AND TOTAL VOLUME OF TWO HUNDRED EIGHTY TWO MILLION FIVE HUNDRED THIRTEEN THOUSAND IN FRIDAY'S SHORTENED SESSION NATIONAL MARKET VOLUME REGISTERED JUST ONE HUNDRED SEVENTY ONE MILLION NINE HUNDRED SEVENTY ONE THOUSAND FIVE HUNDRED SHARES WHILE TOTAL VOLUME REACHED TWO HUNDRED EIGHT MILLION ONE HUNDRED EIGHTY NINE THOUSAND THE DOLLAR TUMBLED AGAINST THE YEN HURT BY THE COLLAPSE OF TRADE TALKS BETWEEN THE U. S. AND JAPAN ON FRIDAY MID ATLANTIC MEDICAL SERVICES ROSE TWO TO THIRTY TWO AND SEVEN EIGHTHS THE ROCKVILLE MARYLAND PROVIDER OF MANAGED HEALTH CARE PROJECTS SAID IT WILL POST FOURTH QUARTER NET INCOME BETWEEN FORTY SIX CENTS AND FORTY NINE CENTS A SHARE TOPPING ANALYSTS' ESTIMATES OF TWENTY EIGHT CENTS TO THIRTY THREE CENTS IT EARNED TWENTY TWO CENTS A YEAR EARLIER MID ATLANTIC ALSO SAID IT EXPECTS TO POST NINETEEN NINETY THREE EARNINGS OF ONE DOLLAR AND SEVEN CENTS TO ONE DOLLAR AND TEN CENTS A SHARE UP FROM SIXTY THREE CENTS IN NINETEEN NINETY TWO ALL FIGURES REFLECT A THREE FOR TWO STOCK SPLIT ANNOUNCED IN NOVEMBER DIANA A MILWAUKEE WHOLESALE MEAT DISTRIBUTOR JUMPED TWO AND THREE EIGHTHS TO TWELVE AND THREE QUARTERS ON THE BIG BOARD THE COMPANY SAID FISCAL THIRD QUARTER EARNINGS WERE FIFTY ONE CENTS A SHARE COMPARED WITH OPERATING NET OF SEVEN CENTS A SHARE IN THE YEAR EARLIER PERIOD PROTECTIVE LIFE ROSE THREE AND ONE EIGHTH TO FORTY FIVE AND ONE HALF ON THE BIG BOARD THE BIRMINGHAM ALABAMA INSURER SAID FOURTH QUARTER NET ROSE TO ONE DOLLAR AND THIRTY SEVEN CENTS A SHARE FROM EIGHTY ONE CENTS A YEAR EARLIER ALSO ON THE BIG BOARD SEITEL GAINED ONE AND THREE EIGHTHS TO SIXTEEN AND SEVEN EIGHTHS THE HOUSTON SEISMIC DATA COMPANY SAID FOURTH QUARTER NET INCOME ROSE TO FORTY ONE CENTS A SHARE ON MORE SHARES FROM TWENTY SIX CENTS A YEAR EARLIER SEITEL ALSO SAID ITS THREE D. SEISMIC OPERATIONS ARE BOOKED UP THROUGH NEARLY ALL OF THIS YEAR AND THAT IT IS EXPANDING ITS PRODUCTIVE CAPACITY BUT N. Y. S. E. LISTED TIMBERLAND FELL ONE AND FIVE EIGHTHS TO FORTY ONE AND SEVEN EIGHTHS AFTER PLUNGING NINE AND SEVEN EIGHTHS ON FRIDAY THE HAMPTON N. H. FOOTWEAR AND APPAREL COMPANY EXPECTS TO REPORT BREAK EVEN RESULTS FOR THE FIRST HALF OF NINETEEN NINETY FOUR BUT WILL RECOVER ENOUGH IN THE SECOND HALF TO REPORT EARNINGS OF MORE THAN THREE DOLLARS A SHARE FOR THE YEAR AN ANALYST SAID TIMBERLAND EARNED TWO DOLLARS AND ONE CENT A SHARE IN NINETEEN NINETY THREE ON FRIDAY TIMBERLAND'S SHARES FELL WHEN IT REPORTED FOURTH QUARTER EARNINGS OF SIXTY TWO CENTS A SHARE BELOW THE SIXTY SIX CENTS EXPECTED BY WALL STREET SPECTRAN SANK ONE TO NINE AND ONE HALF AFTER FRIDAY'S CLOSE THE STURBRIDGE MASSACHUSETTS MAKER OF FLEXIBLE GLASS FIBERS SAID FOURTH QUARTER EARNINGS FELL TO TWENTY CENTS A SHARE FROM TWENTY ONE CENTS A YEAR EARLIER TECHNICAL COMMUNICATIONS SLIPPED TWO TO ELEVEN AND ONE QUARTER THE CONCORD MASSACHUSETTS COMMUNICATIONS SECURITY DEVICES CONCERN POSTED A FISCAL FIRST QUARTER LOSS OF TWENTY FOUR CENTS A SHARE COMPARED WITH EARNINGS OF ONE CENT A SHARE A YEAR EARLIER N. Y. S. E. LISTED QUICK AND REILLY GROUP FELL TWO AND FIVE EIGHTHS TO THIRTY ONE MERRILL LYNCH AND COMPANY SOLD FIFTEEN THOUSAND QUICK AND REILLY SHARES AND WAS OFFERING ANOTHER FORTY THOUSAND FOR SALE THE PALM BEACH FLORIDA BROKERAGE FIRM SAID QUICK AND REILLY ALSO TOLD ANALYSTS LAST WEEK THAT IT EXPECTS TO REPORT FISCAL FOURTH QUARTER EARNINGS OF ABOUT ONE DOLLAR A SHARE MATCHING THE FIGURE EARNED A YEAR EARLIER ON A SPLITADJUSTED BASIS PATRICK DAVIS MANAGER OF NASDAQ TRADING AT SALOMON BROTHERS INCORPORATED SAID HE HAS NOTICED A DIVERGENCE IN THE LAST WEEK BETWEEN LARGER AND SMALLER STOCKS THAT COULD INDICATE A BIT OF A ROTATION BACK TO SMALL CAP ISSUES FROM BIGGER CYCLICALS SINCE FEBRUARY FOURTH WHEN THE DOW INDUSTRIALS FELL NINETY SIX POINTS SMALLER STOCKS HAVEN'T POSTED AS LARGE GAINS AS THEIR LARGER COUNTERPARTS ON THAT DAY THE FEDERAL RESERVE SAID IT WOULD MOVE TO TIGHTEN MONETARY POLICY THE DOW INDUSTRIALS HAVE COME BACK ZERO POINT EIGHT FOUR PERCENT SINCE AND THE RUSSELL HAS RECOVERED ZERO POINT FIVE EIGHT PERCENT BUT LAST WEEK THE RUSSELL ROSE TWO DAYS WHEN THE BROADER MARKET FELL MARY LISANTI A BANKERS TRUST COMPANY PORTFOLIO MANAGER OF SMALL CAP AND MIDCAP FUNDS WITH ASSETS OF ABOUT EIGHT HUNDRED MILLION DOLLARS IS BETTING SMALL CAP STOCKS WILL OUTPERFORM LARGER ISSUES OVER THE NEAR TERM QUOTE SMALL CAP STOCKS MARCH TO THEIR OWN DRUMMER QUOTE MS. LISANTI SAID THERE HAVE BEEN MORE SMALLER COMPANY EARNINGS THAT HAVE SURPRISED TO THE UPSIDE RATHER THAN THE DOWNSIDE THIS EARNINGS PERIOD AND THIS IS STILL AN EARNINGS DRIVEN MARKET DAVID WACHTEL JUNIOR FIFTY ONE YEARS OLD RESIGNED AS CHAIRMAN OF O'CHARLEY'S INCORPORATED A RESTAURANT CHAIN TO TURN FULL TIME TO HIS JOB AS PRESIDENT AND CHIEF EXECUTIVE OF PRIVATELY HELD WESTERN SIZZLIN' CORPORATION A CHAIN OF STEAK RESTAURANTS MR. WACHTEL WAS ONE OF A GROUP OF WESTERN SIZZLIN' FRANCHISEES WHO BOUGHT THE CHAIN NOW BASED IN NASHVILLE OUT OF CHAPTER ELEVEN BANKRUPTCY LAW PROCEEDINGS LAST FALL HE WILL BE SUCCEEDED BY GREGORY BURNS THIRTY EIGHT AND CHARLES MCWHORTER JUNIOR THIRTY NINE WHO WILL BE CO CHAIRMEN MR. BURNS WHO HAD BEEN CHIEF FINANCIAL OFFICER AND PRESIDENT WILL ASSUME THE CHIEF EXECUTIVE POST MR. MCWHORTER CHIEF OPERATING OFFICER WILL SUCCEED MR. BURNS AS PRESIDENT MR. WACHTEL WHO HAD BEEN CHIEF EXECUTIVE OFFICER AND PRESIDENT GAVE UP OPERATIONAL RESPONSIBILITY FOR THE COMPANY LAST MAY MR. BURNS SAID SINCE THEN THE COMPANY HASN'T HAD A CHIEF EXECUTIVE OFFICER MR. WACHTEL SAID HE IS FILING A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL AS MANY AS TWO HUNDRED THIRTY THOUSAND SHARES IN O'CHARLEY'S ABOUT ONE THIRD OF HIS STAKE HE IS SELLING FOR QUOTE PERSONAL FINANCIAL REASONS QUOTE THE COMPANY HAS ABOUT FOUR POINT TWO MILLION SHARES OUTSTANDING THE U. S. IS PREPARING A TWO FRONT TRADE BATTLE WITH JAPAN WHICH IS TRYING TO HEAD OFF A FIGHT ON A THIRD FRONT THE ACTIONS FOLLOW THE COLLAPSE OF THE U. S. JAPAN TRADE SUMMIT LAST WEEK IN THE WAKE OF THAT FAILURE THE YEN SOARED AGAINST THE DOLLAR YESTERDAY DESPITE MARKET SPECULATION THAT THE U. S. WILL TRY TO BOOST THE YEN TO MAKE JAPANESE EXPORTS RELATIVELY MORE EXPENSIVE ADMINISTRATION OFFICIALS HAVE SAID THAT ISN'T THEIR INTENTION THEY ARGUE THAT BROADER MARKET FORCES THAT COULD PUSH DOWN THE YEN PRIMARILY THE WEAKNESS OF THE JAPANESE ECONOMY ARE TOO STRONG TO COUNTERACT UNILATERALLY THE CLINTON ADMINISTRATION DIDN'T ACT TO STOP THE YEN'S RISE DURING NEW YORK TRADING YESTERDAY BUT LAST NIGHT HOPING TO CALM THE FOREIGN EXCHANGE MARKET THE U. S. TREASURY ISSUED A STATEMENT ATTRIBUTED TO A SENIOR TREASURY OFFICIAL AND RELEASED JUST IN TIME FOR THE OPENING OF THE TOKYO MARKETS IT SAID QUOTE OUR EXCHANGE RATE POLICY IS UNCHANGED FROM THAT ALREADY ARTICULATED BY TREASURY SECRETARY LLOYD BENTSEN WE DO NOT BELIEVE IN ARTIFICIALLY MANIPULATING EXCHANGE RATES QUOTE THE U. S. HOPES THAT ITS TOUGH TRADE TACTICS WILL FORCE JAPAN TO RETREAT AND ADOPT IMPORT GOALS THAT IT DISMISSED LAST WEEK TO LAUNCH ITS CAMPAIGN THE ADMINISTRATION HAS DECIDED TO RENEW A TOUGH TRADE PROVISION KNOWN AS SUPER THREE HUNDRED ONE THAT SINGLES OUT COUNTRIES FOR RETALIATION AND IS AIMED AT JAPAN CONGRESSIONAL STAFFERS SAID THE RENEWAL WOULD COME AS EARLY AS TODAY BUT CLINTON OFFICIALS SAID IT MIGHT BE SEVERAL DAYS LATER AT THE SAME TIME THE ADMINISTRATION PLANS TO LAUNCH TRADE SANCTION PROCEEDINGS TODAY OVER A DISPUTE WITH JAPAN OVER CELLULAR TELEPHONES WE'RE LOOKING AT SEVERAL OPTIONS PRESIDENT CLINTON SAID BUT I'M NOT RULING ANYTHING OUT AS PROSPECTS FOR CONFLICT HEIGHTENED JAPANESE OFFICIALS MOVED TO CALM YET ANOTHER TRADE DISPUTE THIS ONE OVER SUPERCOMPUTERS A JAPANESE GOVERNMENT RESEARCH INSTITUTE ANNOUNCED YESTERDAY THAT IT WOULD BUY MACHINES FOR A SUPER COMPUTER CENTER FROM SEVERAL AMERICAN COMPANIES LED BY INTERNATIONAL BUSINESS MACHINES CORPORATION NEXT MONTH THE U. S. IS SCHEDULED TO COMPLETE A SPECIAL REVIEW AND DETERMINE WHETHER THE JAPANESE GOVERNMENT UNFAIRLY FAVORS DOMESTIC SUPER COMPUTER MAKERS WE'RE MAKING A TRANSITION INTO A NEW WAY OF DOING BUSINESS WITH JAPAN SAID U. S. TRADE REPRESENTATIVE MICKEY KANTOR THERE'S NO MORE STATUS QUO HE SAID THE ADMINISTRATION'S INITIAL THRUST FEATURES THE RENEWAL OF SUPER THREE HUNDRED ONE AS A GET TOUGH SIGNAL TO JAPAN UNDER THAT PROVISION THE U. S. TARGETS COUNTRIES ENGAGED IN A PATTERN OF UNFAIR TRADE PRACTICES AND NEGOTIATES TO END THOSE PRACTICES IF NO AGREEMENT IS REACHED WITHIN EIGHTEEN MONTHS THE U. S. WOULD RETALIATE GENERALLY BY IMPOSING PUNITIVE TARIFFS ON IMPORTS FROM THE TARGETED COUNTRY CONGRESS PASSED SUPER THREE HUNDRED ONE IN NINETEEN EIGHTY EIGHT TO FORCE THE BUSH ADMINISTRATION TO ADOPT A MORE MILITANT TRADE POLICY IN NINETEEN EIGHTY NINE THE U. S. TARGETED JAPAN BRAZIL AND INDIA AND EVENTUALLY WON CONCESSIONS FROM THE FIRST TWO BEFORE THE LAW EXPIRED IN NINETEEN NINETY TRADE EXPERTS SAID THE CLINTON ADMINISTRATION ALREADY HAS LEGAL AUTHORITY TO GO AFTER COUNTRIES WITHOUT SUPER THREE HUNDRED ONE BUT BY ADOPTING THE PROVISION THROUGH EXECUTIVE ORDER THE ADMINISTRATION WOULD CLEARLY SIGNAL TO JAPAN THAT IT PLANS A CONFRONTATIONAL STRATEGY AND DOESN'T NEED TO BE EGGED ON BY CONGRESS THE RISK SAID I. M. DESTLER A JAPAN SPECIALIST AT THE UNIVERSITY OF MARYLAND IS THAT YOU GENERATE A NATIONALISTIC REACTION IN JAPAN AND UNDERCUT THE GOALS YOU SEEK ALONG WITH SUPER THREE HUNDRED ONE THE U. S. PLANS TO ELEVATE A FIGHT OVER CELLULAR TELEPHONES IN ORDER TO HIGHLIGHT THE CLOSED NATURE OF THE JAPANESE MARKET MOTOROLA INCORPORATED COMPLAINS OF BEING DENIED QUOTE COMPARABLE QUOTE ACCESS TO THE JAPANESE CELLULAR TELEPHONE MARKET DESPITE A TRADE AGREEMENT PROMISING MOTOROLA AN OPEN MARKET THE DISPUTE CENTERS ON AN AREA SOUTH OF TOKYO WHERE THE TELECOMMUNICATIONS MINISTRY PAIRED MOTOROLA WITH A COMPANY THAT ALSO REPRESENTS MOTOROLA'S MAJOR JAPANESE RIVAL NIPPON TELEGRAPH AND TELEPHONE CORPORATION MOTOROLA HAS SAID THAT ITS PARTNER SPENDS MOST OF ITS TIME PUSHING N. T. T.'S TECHNOLOGY NOW MOTOROLA WANTS THE COMPANY TO PLEDGE TO PROMOTE MOTOROLA'S SYSTEM AND FOR THE TELECOMMUNICATIONS MINISTRY TO POLICE THOSE PLEDGES U. S. OFFICIALS SAID THAT THE MINISTRY DIDN'T MAKE ANY MOVE YESTERDAY TO RESOLVE THE CONTROVERSY AS A RESULT THEY EXPECT TO ANNOUNCE TODAY THAT TOKYO VIOLATED THE CELLULAR DEAL THE FIRST STEP IN IMPOSING SANCTIONS UNDER U. S. TRADE LAW THE ADMINISTRATION WOULD ANNOUNCE THIRTY DAYS LATER A PRELIMINARY LIST OF PRODUCTS ON WHICH THE U. S. WOULD IMPOSE PUNITIVE TARIFFS TRADE OFFICIALS LOOK FOR PRODUCTS THAT ARE IMPORTANT TO JAPAN'S TRADE AND ARE ALSO AVAILABLE FROM U. S. SOURCES FOR INSTANCE THE U. S. WOULDN'T PROPOSE TARIFFS ON VIDEOCASSETTE RECORDERS WHICH AREN'T PRODUCED DOMESTICALLY BUT ON ITEMS SUCH AS COMPUTERS AND POWER TOOLS WHICH ARE IN A DISPUTE OVER CELLULAR TELEPHONES THE U. S. PROBABLY WOULD TRY TO SLAP TARIFFS ON JAPANESE EXPORTS OF THOSE GOODS AFTER THE PRELIMINARY LIST IS PUBLISHED THE U. S. WILL HOLD A HEARING ON THE ITEMS CHOSEN IN ORDER TO GIVE DOMESTIC INDUSTRIES A CHANCE TO SAY WHETHER THE TARIFFS WOULD HARM THEM LATER ON THE U. S. WOULD PUBLISH A FINAL LIST OF SANCTION TARGETS THEN FINALLY IMPOSE THE TARIFFS THE WHOLE PROCESS CAN TAKE MORE THAN THREE MONTHS THAT'S ON PURPOSE THE IDEA OF TRADE SANCTIONS ISN'T TO IMPOSE TARIFFS BUT TO FORCE A COUNTRY TO ELIMINATE PRACTICES THE U. S. FINDS OBJECTIONABLE SIMILARLY SUPER THREE HUNDRED ONE ENVISIONS AN EIGHTEEN MONTH INVESTIGATION TO GIVE THE U. S. TIME TO TWIST THE ARMS OF ITS TRADE ADVERSARIES JAPANESE GOVERNMENT OFFICIALS DECLINED TO SAY YESTERDAY WHETHER THEY WILL OFFER LAST MINUTE CONCESSIONS TO STAVE OFF THE U. S. THREAT ON CELLULAR PHONES BUT SOME OFFICIALS SAID THAT PRIME MINISTER MORIHIRO HOSOKAWA WILL MEET SOON WITH HIS ADVISERS TO TRY TO CRAFT A NEW RESPONSE TO U. S. TRADE COMPLAINTS WE WILL CONTINUE OUR VOLUNTARY PATH TO DEREGULATE AND OPEN UP MARKETS AN OFFICIAL SAID U. S. TRADE OFFICIALS SAID THEY ARE TARGETING THE MOTOROLA CASE BECAUSE THEY HAVE A STRONG CASE THERE INDEED THE CLINTON ADMINISTRATION MOVED UP THE DATE WHEN IT WOULD ANNOUNCE A FINDING BY SIX WEEKS UNTIL JUST AFTER THE TRADE SUMMIT SO IT COULD MAKE IT A TEST CASE OF U. S. JAPANESE TRADE RELATIONS WITH THE SUPER COMPUTER DISPUTE WHICH TOKYO TRIED TO DEFUSE YESTERDAY THE U. S. CASE IS MUCH WEAKER JAPANESE OFFICIALS SAY YESTERDAY'S CONTRACT AWARD TO THE I. B. M. GROUP MEANS SIX OF THE PAST ELEVEN PUBLIC SUPER COMPUTER BIDS HAVE GONE TO U. S. MAKERS IF THIS CAN BE CALLED NOT FAIR THERE IS NO SUCH THING AS A FAIR PROCESS SAID AN OFFICIAL AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY U. S. TRADE OFFICIALS COMPLAIN THAT JAPAN IS SIMPLY TRYING TO BUY OFF THE U. S. INDUSTRY WITH THE AWARDS U. S. COMPANIES HAVEN'T WON HEAD TO HEAD COMPETITION WITH JAPANESE COMPANIES WASHINGTON COMPLAINS BUT THE U. S. POSITION ON SUPERCOMPUTERS IN JAPAN IS UNDERCUT BY GOVERNMENT PRACTICES AT HOME U. S. AGENCIES RARELY IF EVER BUY FOREIGN SUPERCOMPUTERS PARTLY BECAUSE THEY KNOW SUCH PURCHASES WILL CAUSE THEM POLITICAL GRIEF IN ADDITION CRAY RESEARCH INCORPORATED THE BIGGEST U. S. SUPER COMPUTER MAKER SAID IT DOESN'T WANT THE U. S. TO IMPOSE TRADE SANCTIONS WHICH COULD LEAD TO PUNITIVE TARIFFS ON CRAY'S IMPORTS CRAY BUYS ONE HUNDRED MILLION DOLLARS ANNUALLY IN COMPUTER CHIPS AND OTHER CRITICAL COMPONENTS FROM JAPANESE SUPPLIERS A SPOKESMAN ESTIMATED I DOUBT OUR SUPPLIERS WANT TO SEE SANCTIONS HE SAID QUENTIN HARDY IN TOKYO CONTRIBUTED TO THIS ARTICLE WAXMAN INDUSTRIES INCORPORATED REPORTED A SIXTY PERCENT DECLINE IN NET INCOME FOR THE FISCAL SECOND QUARTER AND SAID IT PLANS TO REFINANCE ABOUT ONE HUNDRED SIXTY FIVE MILLION DOLLARS IN DOMESTIC DEBT FOR THE QUARTER ENDED DECEMBER THIRTY FIRST THE BEDFORD HEIGHTS OHIO COMPANY REPORTED NET INCOME OF SEVENTY FOUR THOUSAND DOLLARS OR ONE CENT A SHARE COMPARED WITH NET INCOME OF ONE HUNDRED EIGHTY SIX THOUSAND DOLLARS OR TWO CENTS A SHARE IN THE YEAR EARLIER QUARTER SALES FELL SIX POINT FOUR PERCENT TO EIGHTY FIVE POINT FOUR MILLION DOLLARS FROM NINETY ONE POINT ONE MILLION DOLLARS WAXMAN A SUPPLIER OF PARTS AND EQUIPMENT TO THE HOME REPAIR AND REMODELING MARKET SAID IT HAS BEEN WORKING WITH MERRILL LYNCH AND COMPANY AND A UNIT OF CITICORP FOR THE PAST SIX WEEKS TO REFINANCE ITS DOMESTIC BANK DEBT A SPOKESMAN FOR THE COMPANY DECLINED TO OUTLINE POSSIBLE REFINANCING PLANS WAXMAN ADDED THAT IT REACHED AN AGREEMENT WITH CANADIAN LENDERS THAT WOULD ALLOW ITS IDEAL PLUMBING PARTS UNIT MORE FINANCIAL FLEXIBILITY BY DEFERRING CERTAIN DEBT PAYMENTS LIBERTY BROKERAGE INVESTMENT COMPANY A MAJOR BROKER FOR PRIMARY DEALERS IN U. S. TREASURY SECURITIES SAID IT AGREED TO PROVIDE PRICING DATA TO BOTH DOW JONES TELERATE AND REUTERS FINANCIAL DATA SERVICES THE AGREEMENT GIVES DOW JONES TELERATE A SECOND SIGNIFICANT STREAM OF INTERDEALER TREASURY SECURITIES PRICING DATA UNDER A LONG TERM CONTRACT DOW JONES TELERATE ALREADY PROVIDES DATA FROM BROKERAGE FIRM CANTOR FITZGERALD AND COMPANY THE LIBERTY AGREEMENT DOESN'T AFFECT ITS ARRANGEMENT WITH CANTOR A DOW JONES SPOKESMAN SAID QUOTE WE FELT THAT THE MARKETS WOULD BE INTERESTED IN SEEING THE LIBERTY INFORMATION QUOTE A LIBERTY SPOKESMAN SAID HE SAID THE COMPANY WASN'T UNDER ANY GOVERNMENT PRESSURE TO MAKE THE DATA MORE AVAILABLE BUT ADDED IT IS VERY CLEAR THAT REGULATORY AGENCIES WANT AS WIDE A DISTRIBUTION AS POSSIBLE AND ONE THAT IS AS MEANINGFUL AS POSSIBLE THE LIBERTY MOVE PARTLY REFLECTS THE GROWING IMPORTANCE OF SHORT TERM BOND DATA ON THE MARKETS SOME ANALYSTS AND BOND TRADERS SAY CANTOR FITZGERALD'S STRENGTH IS IN LONGER TERM FIXED INCOME SECURITIES PARTICULARLY THE THIRTY YEAR BOND LIBERTY'S SPECIALTY IS IN SHORTER TERM NOTES TRADERS SAY HOWEVER STUART FRASER A CANTOR SENIOR MANAGING DIRECTOR WHO RUNS THE FIRM'S BROKERAGE BUSINESS SAID I DON'T THINK ANY ONE INTERDEALER BROKER DOMINATES THE SHORT END OF THE MARKET THE MOVE IS A BIG BOOST TO LIBERTY BECAUSE TELERATE AND REUTERS TOGETHER REPRESENT THE BULK OF COMPUTER SCREENS ON THE BOND MARKET THE AGREEMENTS GIVE US THE WIDEST POSSIBLE DISTRIBUTION WITH EUROPEAN AND ASIAN COVERAGE AS WELL AS NORTH AMERICA THE LIBERTY SPOKESMAN SAID THE AGREEMENTS ARE NONEXCLUSIVE LIBERTY SAID IT WOULD CONSIDER OTHER VENDORS LIBERTY FORMED IN NINETEEN EIGHTY SIX IS OWNED BY ABOUT A DOZEN PRIMARY DEALERS IN U. S. GOVERNMENT SECURITIES AND OTHER INVESTORS INCLUDING MCGRAW HILL INCORPORATED BOTH REUTERS THE INFORMATION SERVICE UNIT OF REUTERS HOLDINGS P. L. C. AND DOW JONES TELERATE A UNIT OF DOW JONES AND COMPANY PLAN TO BEGIN OFFERING THE LIBERTY DATA ON TREASURY SECURITIES LATER THIS YEAR LIBERTY'S DATA ARE SIGNIFICANT TO THE MARKET BECAUSE THEY LIKE CANTOR'S DATA REPRESENT ATTRIBUTABLE TRADES OR ACTUAL TRADES REPORTED BY PRIMARY DEALERS IN THE TREASURY MARKET LIBERTY IS ALSO PART OF GOVPX A GOVERNMENT BOND DATA DISTRIBUTOR FORMED BY U. S. TREASURY SECURITY PRIMARY DEALERS ALTHOUGH GOVPX TRADES ARE UNATTRIBUTED THE GOVPX DATA ARE ALREADY AVAILABLE ON REUTERS DOW JONES ALSO PUBLISHES THE WALL STREET JOURNAL BARRON'S AND OTHER PUBLICATIONS ELECTRONIC BUSINESS INFORMATION SERVICES AND COMMUNITY NEWSPAPERS THE PHENOMENON OF FAME BEFORE ACCOMPLISHMENT IS NOT RARE IN THIS IMPATIENT ERA BUT BY AND LARGE IT HAS SKIRTED SPORTS THE CROWDED CALENDAR PROVIDES MORE THAN ENOUGH WINNERS TO SATISFY THE MOST VORACIOUS CELEBRITY WORSHIPERS AND THEN WE HAVE DAN JANSEN THE SPEED SKATER HE HAD FAILED AND FAILED AGAIN IN THE OLYMPICS THE ONE COMPETITION AMERICANS NOTICE IN HIS OBSCURE PURSUIT YET THAT ONLY SERVED TO ENHANCE HIS STATURE HANDSOME HARDWORKING AND BLAND HE IS APPARENTLY THE SORT OF MAN WE YEARN TO ADMIRE WITH OR WITHOUT MUCH EXCUSE EVEN IN DEFEAT HIS PICTURE WAS PICKED TO GRACE BOXES OF KELLOGG'S CORN FLAKES WHAT COULD HE EXPECT IN VICTORY WHEATIES WE MIGHT NEVER FIND OUT THE TWENTY EIGHT YEAR OLD MILWAUKEEAN CAME YESTERDAY AFTERNOON TO THE GREAT CEILINGED HAMAR OLYMPIC HALL THE MOST IMPRESSIVE INDOOR VENUE OF THESE WINTER GAMES AS THE STRONG FAVORITE IN HIS FIVE HUNDRED METER SPECIALTY AS HE WAS IN THE PREVIOUS TWO OLYMPICS AND AS HE HAD IN THREE OTHER OF THESE AFFAIRS HE FINISHED OFF THE MEDAL STAND A DISTANT EIGHTH HIS DOWNFALL WAS A SINGLE STEP ON THE RACE'S FINAL TURN HIS LEFT SKATE SLIPPED KNOCKING HIM OUT OF KILTER AND HE HAD TO EXTEND A HAND TO RIGHT HIMSELF HE DID AND FINISHED IN A TIME OF THIRTY SIX POINT SIX EIGHT SECONDS ONLY ZERO POINT THREE FIVE SECOND BEHIND THAT OF WINNER ALEKSANDR GOLUBEV AN UNHERALDED RUSSIAN BUT IN A SPORT WHERE A FEW HUNDREDTHS OF A SECOND OFTEN SEPARATE WINNERS FROM ALSORANS THE GAP WAS GAPING QUOTE I DON'T KNOW WHY IT HAPPENED QUOTE MR. JANSEN SAID LATER I WAS FINE TO THAT POINT I FELT GOOD HAD A GOOD START AND MY FIRST TURN WAS SOLID IT WASN'T NORMAL TO SLIP AT THAT PART I TRIED TO GET IT BACK BUT I'D LOST MOMENTUM WITHOUT THE SLIP I THINK I WOULD HAVE WON THE RACE BY QUITE A BIT ANYONE SEARCHING FOR HISTORICAL COMPARISONS FOR MR. JANSEN'S PLIGHT COULD DO WORSE THAN SUMMON UP SAM SNEAD NO ONE STRUCK MORE GOLF BALLS BETTER THAN THE MAN FROM WEST VIRGINIA BUT HIS SPORT'S BIGGEST PRIZE THE U. S. OPEN ALWAYS ELUDED HIM A FEW TIMES IN BIZARRE FASHION AND HE'LL BE REMEMBERED AS MUCH FOR HIS DEFEATS THERE AS FOR HIS MANY TRIUMPHS MR. JANSEN TOO HAS BAGGED MANY A PRIZE AND THEY ARE IMPORTANT IN PLACES LIKE NORWAY WHERE SPEED SKATING AND SKATERS ARE REVERED THAT WAS EVIDENT FROM THE OVATION HE RECEIVED WHEN HE STEPPED TO THE STARTING LINE YESTERDAY BEFORE THE FULL HOUSE CROWD OF ELEVEN THOUSAND THAT HAS MADE THIS ONE OF THE GAMES' HOTTEST TICKETS HIS CREDITS INCLUDE MORE THAN FIFTY MEDALS ON THE WORLD CUP CIRCUIT AND TWENTY ODD FROM VARIOUS WORLD CHAMPIONSHIPS INCLUDING THE MOST RECENT MORE TO THE POINT THERE HAVE BEEN THREE SUB THIRTY SIX SECOND SPEED SKATING FIVE HUNDREDS POSTED SINCE THE DAWN OF CREATION AND ALL THREE ARE HIS THAT MAKES HIM THE FASTEST HUMAN EVER ON TWO FEET OVER FLAT TERRAIN HE OWNS THE WORLD RECORD OF THIRTY FIVE POINT SEVEN SIX SECONDS FOR THE DISTANCE SET JANUARY THIRTIETH AT THE WORLD SPRINT CHAMPIONSHIPS IN CALGARY BUT MR. JANSEN'S OLYMPIC TRAVAILS ARE BETTER KNOWN THE STUFF OF BOTH PATHOS AND COMMONER WOE HE STARTED OUT PROMISINGLY ENOUGH FINISHING FOURTH IN THE FIVE HUNDRED IN NINETEEN EIGHTY FOUR AS AN EIGHTEEN YEAR OLD OUTSIDER JUST GLAD TO BE THERE FOUR YEARS LATER HE CAME TO CALGARY AS THE FAVORITE IN THE EVENT BUT THE DAY OF THE RACE LEARNED THAT HIS SISTER HAD DIED OF LEUKEMIA HE DEBATED WHETHER TO COMPETE DID AND FELL A RARE OCCURRENCE A FEW DAYS LATER HE WAS BACK FOR THE ONE THOUSAND METER RACE ANOTHER USUALLY STRONG EVENT FOR HIM HE FELL AGAIN AT THE NINETEEN NINETY TWO ALBERTVILLE GAMES HE HAD EVEN STRONGER CREDENTIALS AND VOWED TO SHOW PEOPLE THE REAL ME ON ICE HE SKATED WITHOUT MISHAP BUT PLACED A DISTANT FOURTH IN THE FIVE HUNDRED AND A MORE DISTANT TWENTY SIXTH IN THE ONE THOUSAND THE ICE OF THE OUTDOOR RINK THERE TURNED WET AND SOFT BY AN UNSEASONABLE WARM SNAP DIDN'T SUIT HIS LONG STRIDING STYLE HE SAID HIS LOSSES WERE CAST IN SHARPER RELIEF BY THE VICTORIES OF BONNIE BLAIR HIS FRIEND AND TRAINING MATE SHE WON TWO GOLD MEDALS AT ALBERTVILLE TO GO WITH THE ONE SHE'D CAPTURED AT CALGARY SHE WELL MAY ADD A COUPLE MORE IN THE WOMEN'S FIVE HUNDRED SCHEDULED FOR SATURDAY AND THE ONE THOUSAND ON THE FOLLOWING WEDNESDAY ACCORDING TO BOTH MR. JANSEN AND HIS COACH OLYMPIC EX CHAMP PETER MUELLER LILLEHAMMER WAS TO BE DIFFERENT NEW TRAINING ROUTINES HAD HONED THE SKATER'S BODY AND MARRIAGE AND A DAUGHTER BORN IN MAY HAD SET HIS PRIORITIES RIGHT THIS TIME MR. JANSEN ESCHEWED THE USUAL ATHLETE'S PROMISE TO DO HIS BEST SAYING HE EXPECTED TO WIN THE FIVE HUNDRED COACH MUELLER WENT FURTHER PREDICTING VICTORY BY A HALF SECOND MARGIN THAT'S THE SPEEDSKATING EQUIVALENT OF A RACE TRACK FURLONG DAN'S NEVER BEEN IN BETTER PHYSICAL OR MENTAL SHAPE HE HASN'T HAD A BAD DAY ON ICE ALL WINTER MR. MUELLER DECLARED NEGATIVE THOUGHTS WERE NOT TO BE ENTERTAINED WHEN A NEWSMAN BEGAN A PRESS CONFERENCE QUESTION FRIDAY WITH THE WORDS QUOTE LOOKING BACK QUOTE THE SKATER CUT HIM OFF I DON'T WANT TO LOOK BACK SAID HE BUT INEVITABLY HE WAS ASKED TO DO THAT AFTER YESTERDAY'S RACE AND NO DOUBT HE WILL BE AGAIN THE QUERY WAS A PECULIAR ONE DID HE ASCRIBE HIS OLYMPIC SETBACKS TO A FORCE OUT OF HIS POWER INSTEAD OF SHRUGGING IT OFF HE ANSWERED MAYBE IT WASN'T MEANT TO BE FOR ME HE SAID EVERYBODY KNOWS I'M THE BEST IN THAT RACE BUT IT WASN'T FOR ME TODAY UPSTAIRS IN THE MEDALISTS' PRESS CONFERENCE THE WINNERS WERE SAYING MUCH THE SAME THING JANSEN IS THE FASTEST SPRINTER ON EARTH SO EIGHTH PLACE TODAY WAS NOT PROPER SAID THE RUSSIAN SERGEI KLEVCHENYA THE RUNNER UP QUOTE HE SHOULD DO BETTER IN THE ONE THOUSAND QUOTE THAT RACE PROBABLY MR. JANSEN'S LAST AS AN OLYMPIAN IS SCHEDULED FOR FRIDAY AND INDEED HE PROBABLY WILL DO BETTER BUT MAYBE HE WON'T AS I'D TELL MY KIDS WHEN THEY WERE SMALL THE REASON THEY PLAY ALL THOSE GAMES AND RUN ALL THOSE RACES IS TO FIND OUT WHO'S BEST IF WE COULD FIGURE THAT OUT IN ADVANCE WHO'D BOTHER TO WATCH MAYBE INTERACTIVE T. V. ISN'T SUCH A GREAT IDEA AFTER ALL FOR THE FULL TWO WEEKS OF C. B. S. INCORPORATED'S COVERAGE OF THE NINETEEN NINETY FOUR WINTER OLYMPIC GAMES THE PRODIGY ON LINE COMPUTER SERVICE IS OFFERING SUBSCRIBERS A CHANCE TO QUOTE CHAT QUOTE ABOUT THE PROGRAMMING WITH C. B. S. PERSONNEL IT ISN'T ALWAYS PRETTY THIS IS BY FAR THE WORST COVERAGE EVER ONE USER RAILED IN A COMPUTER MESSAGE ZAPPED ALL THE WAY TO LILLEHAMMER NORWAY REFERRING TO C. B. S.'S TAPED STORIES HE COMPLAINED ABOUT THE DIVERSIONARY HUMAN INTEREST JUNK OTHERS WONDERED WHO CARED ABOUT PAULA ZAHN'S INTERVIEW OF SOMEONE NAMED LILLY HAMMER OR THE TAPED STORY ABOUT A NORWEGIAN FOLK SINGER NAMED SPUTNIK T. V. COLOR COMMENTARY OF AN ENTIRELY DIFFERENT STRIPE A FEW CITE THE NETWORK'S OUTSTANDING COVERAGE BUT OTHERS INVOKE LESS KINDLY ADJECTIVES INCLUDING GAG ARRGGHH AND GET WITH THE PROGRAM FOR C. B. S. WHICH AT ONE TIME HAD ACTUALLY BEEN A PARTNER IN THE PRODIGY VENTURE WITH CURRENT CO OWNERS INTERNATIONAL BUSINESS MACHINES CORPORATION AND SEARS ROEBUCK AND COMPANY THE NEW EFFORT IS A FORAY INTO ELECTRONIC INTERACTIVITY PRODIGY GETS SOME FREE PROMOTION ON C. B. S.'S LATE NIGHT COVERAGE WHILE THE ELECTRONIC BULLETIN BOARD LETS C. B. S. SEND OUR OLYMPIC MESSAGE TO A NEW AUDIENCE OF TWO MILLION PRODIGY USERS A C. B. S. SPOKESMAN SAID BUT THE MESSAGE COMING BACK FROM CYBERSPACE IT SEEMS SOMETIMES COMES DOWN TO THIS MISSILE FROM AN IMPATIENT VIEWER ONE WORD STINKS SOME ON LINE COMMENTATORS ASKED C. B. S.'S STABLE OF COMMENTATORS TO QUOTE SHUT THEIR TRAPS QUOTE AND EASE UP ON THE QUOTE CONSTANT CHATTER QUOTE DURING THE OPENING CEREMONIES THE NETWORK'S EARLY ANNOUNCEMENT OF MEDAL WINNERS BEFORE THE EVENT IS TELEVISED ALSO HAS ANGERED MEDDLING COUCH OLYMPIANS IT TAKES AWAY ALL THE EXCITEMENT OF THE COMPETITION WROTE ONE PRODIGY USER BUT C. B. S. HOST PAT O'BRIEN SEEMED TO DRUM UP THE MOST INTEREST ON AN ELECTRONIC BULLETIN BOARD TITLED ASK PAT O'BRIEN HE RECEIVED HUNDREDS OF VIEWER MESSAGES ASKING ABOUT SUCH BURNING ISSUES AS PAT WHY WAS THERE SO LITTLE COVERAGE OF THE FIRST TWO ROUNDS OF THE LUGE AND HEY PAT WOULD YOU PLEASE SAY HEY TO MY COUSIN JIMMY DIMA A C. B. S. EMPLOYEE MR. O'BRIEN RESPONDED THAT YES HE WOULD MUCH OF THE ON LINE DISCUSSION CENTERED ON C. B. S. COVERAGE OF THE HARDING KERRIGAN FIGURE SKATING AFFAIR WHICH MANY COMPLAINED WAS TOO LENGTHY TO CONTINUED COMPLAINTS MR. O'BRIEN FINALLY COUNTERED JUST A REMINDER WE DIDN'T CREATE THE TONYA HARDING SLASH NANCY KERRIGAN STORY KILLING THE MESSENGER JUST DOESN'T WORK ANYMORE QUOTE APPARENTLY VIEWERS LIKE THE NEW WAY OF TALKING BACK TO THE T. V. SET GEORGE SCHWEITZER C. B. S. SENIOR VICE PRESIDENT SAID THE RESPONSE TO THE SERVICE HAS BEEN OVERWHELMING BUT IN SUCH AN OPEN FORUM ANYONE NOT JUST C. B. S. IS A TARGET IN A SLIGHTLY OMINOUS NOTE ONE PRODIGY SUBSCRIBER SIMPLY ASKED I WOULD LIKE TO KNOW WHO IS RESPONSIBLE FOR THOSE HORRIBLE OUTFITS THE AMERICAN TEAM WEARS DURING THE OPENING CEREMONIES PAPER PRODUCTS ONE OF THE BEST SUPERMARKET BUYS IN THE NINETEEN NINETIES ARE BECOMING MORE EXPENSIVE FOR MORE THAN THREE YEARS CONSUMERS REAPED THE SPOILS OF PRICING BATTLES THROUGHOUT THE PAPER MARKET RETAIL PRICES OF BATHROOM TISSUE FACIAL TISSUE PAPER TOWELS AND NAPKINS REMAINED STUBBORNLY LOW EVEN IN THE FACE OF A SLOWLY IMPROVING ECONOMY BUT RECENT DATA SHOW THAT THE PRICE WAR IS FINALLY WINDING DOWN THOUGH THEY STILL HOVER AROUND NINETEEN NINETY LEVELS UNIT PRICES OF MOST TYPES OF PAPER PRODUCTS HAVE BEGUN TO INCREASE CONSUMER PRODUCT ANALYSTS SAY MANUFACTURERS DRIVEN IN PART BY A SLIGHT FOURTH QUARTER INCREASE IN PULP PRICES HAVE STARTED TESTING THE MARKET'S APPETITE FOR RETAIL PRICE HIKES FOR EXAMPLE TOILET TISSUE PRICES INCREASED EIGHT POINT NINE PERCENT TO ONE DOLLAR AND THIRTY FOUR CENTS A UNIT DURING THE NINETEEN NINETY THREE FOURTH QUARTER COMPARED WITH ONE DOLLAR AND TWENTY THREE CENTS A UNIT IN THE NINETEEN NINETY TWO PERIOD ACCORDING TO INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE WHAT'S MORE ANDREW SHORE AN ANALYST WITH PAINEWEBBER INCORPORATED SAYS PROCTER AND GAMBLE COMPANY MAKER OF PUFFS FACIAL TISSUE BOUNTY PAPER TOWELS AND CHARMIN BATHROOM TISSUE RAISED PRICES ABOUT TWO PERCENT IN THE FOURTH QUARTER WITH OTHER MANUFACTURERS FOLLOWING SUIT P. AND G. DECLINED TO COMMENT COMPANIES QUOTE WILL TRY TO KEEP EDGING PRICES UPWARD QUOTE MR. SHORE SAYS BUT THEY'LL LIKELY FIND THAT THEY WON'T BE ABLE TO RAISE PRICES AS THEY HAVE IN THE PAST PRIVATE LABEL PRODUCTS HAVE PERFORMED SIMILARLY TO BRANDED PRODUCTS DESPITE THEIR LOWER UNIT PRICES STILL PRIVATE LABEL MAINTAINS A STRONG POSITION IN THE FOUR MAJOR TISSUE MARKETS A FACT THAT COULD TEMPER PRICE INCREASES THE THREAT OF PRIVATE LABEL OR MORE ACCURATELY THE LINGERING THREAT OF PRIVATE LABEL CONTINUES TO BE IMPORTANT IN TERMS OF PRICING SAYS BRUCE KIRK AN ANALYST WITH S. G. WARBURG EVEN WITH PRICES PERCOLATING UPWARD THE PAPER PRODUCTS MARKET REMAINS AT OR NEAR NINETEEN NINETY LEVELS AT THAT TIME INTENSIFIED COMPETITION A FALTERING ECONOMY AND A WEAK PULP MARKET COMBINED TO DEPRESS PRICES THE PROLONGED RETAILING BATTLE CONTRIBUTED TO SCOTT PAPER COMPANY'S RECENTLY ANNOUNCED RESTRUCTURING THAT INCLUDED A THREE HUNDRED EIGHTY ONE MILLION DOLLAR AFTER TAX CHARGE ANALYSTS SAY THE RELENTLESS PRICE COMPETITION AMONG PAPER PRODUCTS REFLECTS A DEARTH OF VALUE ADDED INNOVATIONS THERE HAVE BEEN A FEW MODEST PRODUCT DEVELOPMENTS SUCH AS FACIAL TISSUE LACED WITH LOTION AND PAPER TOWELS WITH ADDED PERFORATIONS TO ALLOW CONSUMERS TO USE ONLY THE AMOUNT THEY NEED NONETHELESS THERE'S NO DISCERNIBLE MARKET LEADER OUT FRONT WITH A FAR BETTER OR DIFFERENTIATED PRODUCT THAT REALLY ALLOWS THEM TO CONTROL THE CATEGORY MR. KIRK SAYS BATHROOM TISSUE MARKETERS HAVE FACED THE GREATEST PRICE COMPETITION IN THE PAST SEVERAL YEARS PARTLY BECAUSE OF KIMBERLYCLARK CORPORATION'S ENTRY INTO THE MARKET IN NINETEEN NINETY WITH A TOILET TISSUE EXTENSION OF ITS POPULAR KLEENEX FACIAL TISSUE BRAND WHILE THAT KLEENEX PRODUCT ISN'T YET AVAILABLE NATIONWIDE ITS SALES GREW ELEVEN PERCENT TO THIRTY ONE POINT THREE MILLION DOLLARS IN THE FOURTH QUARTER ACCORDING TO INFORMATION RESOURCES THE INTRODUCTION OF KLEENEX REALLY TRIGGERED THE TIGHT PRICING SAYS THOMAS SHUFELT A MARKETING EXECUTIVE AT GEORGIAPACIFIC CORPORATION WHICH PRODUCES ANGEL SOFT BATHROOM TISSUE BUT THE PRICES HAVE FIRMED UP SOME RECENTLY AND WE HOPE THAT WE CAN GET SOME RELIEF IN RESPONSE TO YOUR FEBRUARY THIRD EDITORIAL QUOTE LABOR BLOWS RIGHT WHISTLE QUOTE YOUR MISINTERPRETATION OF THE FACTS IS A DISSERVICE TO YOUR READERS AND TO IOWA'S ECONOMIC DEVELOPMENT EFFORTS YOUR COMMENTS CENTER AROUND IPSCO A CANADIAN STEEL COMPANY THAT PLANS TO LOCATE A THREE HUNDRED SIXTY MILLION DOLLAR FACILITY AND INITIALLY EMPLOY THREE HUNDRED PEOPLE ALONG THE MISSISSIPPI RIVER IN MUSCATINE COUNTY THE BENEFITS OF THIS PROJECT FAR OUTWEIGH THE FINANCIAL INCENTIVE PACKAGE PROPOSED BY STATE AND LOCAL OFFICIALS YOUR STATEMENT THAT THE STATE WOULD PAY TWO HUNDRED FORTY THREE THOUSAND DOLLARS PER JOB IS WRONG AND MISREPRESENTS IOWA'S DEVELOPMENT STRATEGY THE FACTS ARE THESE IOWA IS INVESTING THREE MILLION DOLLARS IN UPFRONT ASSISTANCE TO HELP IPSCO TRAIN WELL PAID MANUFACTURING WORKERS AND DEFRAY START UP COSTS THE REMAINING ASSISTANCE ALL COMES IN THE FORM OF TAX INCENTIVES TIED TO THE ENORMOUS INVESTMENT IN MACHINERY AND EQUIPMENT REQUIRED TO BUILD A COMPETITIVE MANUFACTURING PLANT INDEED INVESTMENT TAX CREDITS AND EXEMPTION OF MACHINERY AND EQUIPMENT INVESTMENTS FROM PROPERTY TAXES ARE TWO BASIC ELEMENTS OF EVERY STATE'S ECONOMIC CLIMATE THE SEVENTY MILLION DOLLARS IN TAXES NOT COLLECTED FROM IPSCO OVER THE COURSE OF TWENTY YEARS MERELY MAKES US COMPETITIVE WITH OTHER STATES THAT DON'T TAX EQUIPMENT ADDITIONAL RELATED AND SUPPLIER MANUFACTURERS LIKELY TO BE ATTRACTED TO SERVE IPSCO THE INVESTMENT PACKAGE THAT WE HAVE OFFERED IPSCO IS AVAILABLE TO ANY COMPANY PLANNING A MAJOR EXPANSION IN IOWA AND WE'VE HAD RESULTS WEYERHAUSER EASTMAN KODAK LENNOX AND MAYTAG ARE ONLY A FEW OF THE MANY COMPANIES THAT HAVE CREATED THOUSANDS OF JOBS IN IOWA MEANWHILE I'VE RECOMMENDED EXEMPTING ALL NEW MACHINERY AND EQUIPMENT FROM PROPERTY TAXATION WHEN THE LEGISLATURE APPROVES REPEAL OF THIS TAX WE WILL NO LONGER HAVE TO OVERCOME THIS IMPEDIMENT TO HIGH PAYING JOBS IN MANUFACTURING A. B. C. NEWS SAID IT REPRIMANDED TWO EMPLOYEES WHO STAGED A SCENE FOR A NEWS REPORT JANUARY TWENTY SIXTH THE REPORT WHICH AIRED ON QUOTE WORLD NEWS TONIGHT WITH PETER JENNINGS QUOTE SHOWED CORRESPONDENT COKIE ROBERTS WEARING A COAT IN FRONT OF AN ELECTRONICALLY IMPOSED CAPITOL HILL SCENE MR. JENNINGS UNAWARE THAT MS. ROBERTS WAS ACTUALLY IN A STUDIO SEVERAL TIMES TOLD VIEWERS THAT SHE WAS LIVE AT THE CAPITOL MS. ROBERTS WORE THE COAT AT THE REQUEST OF THE NEWSCAST'S EXECUTIVE PRODUCER RICK KAPLAN BOTH MR. KAPLAN AND MS. ROBERTS WERE REPRIMANDED A. B. C. A UNIT OF CAPITAL CITIES SLASH A. B. C. INCORPORATED SAID THE INCIDENT WAS A MISTAKE EVEN THOUGH IT HAD NO EDITORIAL EFFECT THE ACTION WAS SERIOUS BECAUSE IT MISLED OUR AUDIENCE SAID RICHARD WALD SENIOR VICE PRESIDENT IN A MEMO TO A. B. C. NEWS STAFF IT IS TWENTY DEGREES BELOW ZERO AND APPROACHING MIDNIGHT AS THE HUMAN ICICLES SKI INTO CAMP THEY STASH THEIR SKIS IN A SNOWBANK AND ROLL UP THEIR NORWEGIAN FLAGS FOR THE NIGHT BUT BEFORE CRAWLING INTO THEIR TENTS IT'S TIME FOR SOME MITTEN SLAPPING GOSPEL MUSIC QUOTE WE'RE GOING TO SEE THE KING QUOTE THEY SING NO ONE'S FREEZING THERE THE NEXT MORNING THE YOUNG CHRISTIANS OF NORWAY AWAKE STILL SHIVERING THEIR MILK IS FROZEN THEIR CAVIAR BREAKFAST PASTE IS FROZEN THEIR BREAD IS FROZEN THEIR HOT DOGS ARE FROZEN THIS IS HEAVEN FOR US IT'S AS CLOSE AS YOU CAN GET ON EARTH SAYS SEVENTEEN YEAR OLD SIRI DALSMO THE RACE IS ABOUT TO START MAKE THAT THE RACE THE THIRTY KILOMETER MEN'S CROSS COUNTRY RACE IS THE OPENING OLYMPIC SHOWCASE FOR NORWAY'S SKIING IDOLS AND NORWEGIANS WILL PUT UP WITH ALMOST ANYTHING EVEN FROZEN CAVIAR TO WAVE A FLAG OR RING A BELL IN SUPPORT OF THEIR HEROES AS THEY SKI PAST IF NORWEGIANS WIN SAYS MS. DALSMO STOMPING HER FEET TO WARD OFF FROSTBITE IT'S ALL WORTH IT IT IS OF COURSE THOMAS ALSGAARD AND BJORN DAHLIE THEIR LUNGS BURNING FROM THE POLAR AIR CAPTURE THE GOLD AND SILVER MEDALS AND ARE SERENADED ON TELEVISION BY A YOUNG BOY SINGING A NORWEGIAN FOLK SONG MR. ALSGAARD BLUSHES AND DEDICATES HIS MEDAL TO THE LEGIONS WHO CHEERED HIM ON INSPIRING HE SAYS THE NORWEGIANS' ATTACHMENT TO CROSS COUNTRY RACING IS AKIN TO THE AMERICAN MANIA FOR THE HOME FOOTBALL TEAM BUT THE NORWEGIANS TAKE TAILGATING TO EXTREMES NOT CONTENT TO THROW A COUPLE OF BURGERS ON A GRILL IN THE PARKING LOT THEY SKI INTO THE FOREST PITCH TENTS IN THE SNOW ALONGSIDE THE RACE COURSE AND PARTY FOR DAYS QUOTE YOU MAY FIND THIS PECULIAR QUOTE SAYS BJARNE HJELMTVEDT WHO MARKETS SEWING NOTIONS QUOTE BUT YOU MUST REMEMBER THAT WE NORWEGIANS ARE BORN WITH SKIS ON OUR FEET OF COURSE THIS IS HARD ON OUR MOTHERS BUT THAT'S THE WAY IT IS A GENERATOR HUMS BEHIND HIS WELL APPOINTED PUP TENT PROVIDING ELECTRICITY FOR HIS TELEVISION IT WAS SEVENTEEN BELOW IN MY TENT WHEN I WOKE UP HE SAYS SWELLING WITH PRIDE A MORE TYPICAL TENT A TEPEE ACTUALLY IS THAT OF ARILD SANDSTEN WHO SHARES HIS SPACE WITH FRIEND TRULS RUUD AND THIS REPORTER MESSRS SANDSTEN AND RUUD DIG A HOLE IN THE SNOW FLOOR FOR A WOOD BURNING STOVE AND THEN EXTEND THE CHIMNEY THROUGH THE POINTED ROOF NEXT LEDGES ARE CARVED IN THE SNOW AND COVERED WITH REINDEER SKINS THE SLEEPING BAGS ARE UNROLLED ON TOP OF THE SKINS CAN'T DO BETTER THAN REINDEER SKIN FOR KEEPING WARM SAYS MR. RUUD A FORMER SHEEP FARMER WHO ANNUALLY HEADS TO THE MOUNTAINS TO HUNT ELK A LITTLE BOURBON HELPS TOO ADDS MR. SANDSTEN A MANAGEMENT CONSULTANT WHO ALSO HEADS AN OSLO OUTDOORS CLUB LET'S SAY SKOAL HE SAYS PASSING AROUND GLASSES FILLED WITH JIM BEAM HE INTRODUCES MORE ANTIFREEZE A BOTTLE OF AQUAVIT THE NORWEGIANS' POTATO AND CARAWAY SCHNAPPS AND PROCEEDS TO DEFTLY DEAL OUT SLICES OF DRY SALTED LAMB LEG ELK SAUSAGE AND A NORWEGIAN VERSION OF SPAM CALLED BOG ONCE THE SUN GOES DOWN THE FEAST CONTINUES WITH A POT OF VEGETABLE SOUP QUOTE WE'RE THREE LUCKY GUYS QUOTE HE SAYS LADLING OUT THE STEAMING SOUP IT'S MINUS TWENTY FIVE IT'S THE OLYMPICS WE'VE GOT SOUP THIS IS GREAT THE FIFTY YEAR OLD MR. SANDSTEN WAS THE ONE WHO FIRST PROPOSED TO THE LILLEHAMMER OLYMPIC ORGANIZING COMMITTEE THAT THE NORWEGIAN TRADITION OF TAILGATING CROSS COUNTRY RACES BE EXTENDED TO THE GAMES THIS IS A GOOD OCCASION FOR FAMILIES TO GO OUT AND BE IN NATURE HE SAYS IT WILL HELP INSPIRE THEM TO TAKE CARE OF OUR GREEN AREAS ORGANIZERS ESTIMATE THAT SEVERAL THOUSAND NORWEGIANS WILL BE CAMPING OUT ALONG THE RACE COURSE BEFORE THE OLYMPICS FINISH ON THIS NIGHT AS THE TEMPERATURE PLUMMETS MESSRS SANDSTEN AND RUUD VISIT THE TENTS IN THEIR AREA TO SEE THAT ALL IS WELL NINE YOUNG MEN WHO WALKED TWENTY FIVE MILES OVER THE MOUNTAINS KEEP WARM WITH A HEATED DISCUSSION OVER THE ETIQUETTE OF CROSS COUNTRY CHEERING BOOING IS BAD SPORTSMANSHIP SAYS CARSTEN JOHANSEN QUOTE WE CHEER FOR EVERYONE QUOTE EVEN THE SWEDES ASKS ONE OF THE OTHERS YES EVEN THOUGH LAST YEAR THE SWEDES BOOED THE NORWEGIANS AT A RACE IN NORWAY INSISTS MR. JOHANSEN OF COURSE WE CHEER MORE FOR THE NORWEGIANS THE FRIENDS PASS AROUND A BOTTLE OF STOMACH WARMING JAGERMEISTER A GERMAN LIBATION LET'S SAY SKOAL SAYS MR. SANDSTEN SKOAL SAYS EVERYONE NEXT STOP IS A TENT FULL OF FOURTEEN GIRL SCOUTS THEY ARE WARM AND GOBBLING DOWN BEEF STEW IT'S GOOD FOR THE GIRLS TO STRETCH THEIR LIMITS AND KNOW THEY CAN LIVE COMFORTABLY IN MINUS FIFTEEN MINUS TWENTY WEATHER SAYS SCOUT LEADER SISSEL KRISTIN OSTBY MR. SANDSTEN CHEERED BY THAT ATTITUDE ASKS FOR A SONG THE GIRLS HAPPILY RESPOND WITH A FOLK SONG ABOUT A MAN GOING FISHING NEARBY IS THE OSLO ADVENTURERS CLUB CO FOUNDER JOHN MOSVOLD SHOWS OFF THE PARTY TENT COMPLETE WITH A TELEVISION AND STEREO AFTER A COUPLE OF DAYS OF LAMBADA DANCING ON SKIS AND PLAYING VOLLEYBALL ON SKIS HIS GROUP IS EAGER FOR THE REAL RACES TO BEGIN AND TO GET WARM QUOTE THE BIG THING FOR TONIGHT IS THAT WE'RE GOING INTO LILLEHAMMER FOR SHOWERS QUOTE HE SAYS A SAUNA TOO THE COLD DRIVES MOST OF THE CAMPERS INTO THEIR SLEEPING BAGS SHORTLY AFTER MIDNIGHT WE'LL HAVE BACON AND EGGS IN THE MORNING MR. SANDSTEN TELLS HIS TENT MATES IF YOU GET COLD TONIGHT THINK OF BACON AND EGGS IN THE MORNING JUST AFTER THE BACON AND EGGS THREE COLLEGE STUDENTS FROM THE SOUTHERN PART OF NORWAY LURED BY THE SMELL STICK THEIR HEADS INTO THE TENT ASKING IF THEY CAN COME IN AND WARM UP THEIR FEET THEY HAD DRIVEN TWO HUNDRED MILES DURING THE NIGHT AND HAD PITCHED A TENT TOO SMALL FOR A STOVE THIS IS A ONCE IN A LIFETIME EXPERIENCE SAYS TORGEIR NILSEN SPEAKING OF THE OLYMPICS NOT THE COLD TOES IN NORWAY YOU JUST GET UP AND HEAD FOR THE COLD YOU DON'T HAVE MUCH CHOICE IN NORWAY IT'S ALWAYS COLD QUOTE HE AND HIS FRIENDS DECIDE TO BUILD AN IGLOO BUT ONLY AFTER THE RACE IS OVER AS THE STARTING TIME NEARS THE HOST OF CAMPERS AND THOUSANDS OF COUNTRYMEN WHO HAVE COME UP ONLY FOR THE DAY SEARCH FOR PLACES WARMED BY THE LATE MORNING SUN THEY DO THE WAVE THEY SHOUT ENCOURAGEMENT TO ALL THE RACERS EVEN THE SWEDES BUT THEY SAVE THE FLAG FLYING AND BELL RINGING FOR THE NORWEGIANS THE YOUNG CHRISTIANS AGAIN BREAK INTO SONG VICTORY IS OURS THEY SING OVER AND OVER VICTORY IS OURS IF ANYTHING IN THE OLD SOVIET UNION LIVED UP TO THE IMAGE OF THE RUSSIAN BEAR IT WAS THE OLYMPIC HOCKEY TEAM FEATURING GRUFF GRISLY VETERANS MANY OF THEM OFFICERS IN THE RED ARMY THE TEAM MAULED THE WORLD EVERY FOUR YEARS PUTTING ITS CLAWS ON ALL BUT TWO OF THE GOLD MEDALS SINCE NINETEEN FIFTY SIX THIS YEAR'S RUSSIAN TEAM STRIPPED OF THE OLD MENACING CCCP JERSEYS LOOKS MORE LIKE THE BEAR'S HUGGABLE CUBS IT IS THE YOUNGEST TO EVER SKATE OUT OF MOSCOW THERE'S MORE PEACH FUZZ THAN STUBBLE NOT A SINGLE PLAYER COMES FROM THE ARMY CLUB INDEED THE TEAM SHOWED ITS VULNERABILITY LOSING TO FINLAND YESTERDAY FIVE TO ZERO TO FALL TO ONE TO ONE RUSSIA BEAT NORWAY IN ITS OPENER QUOTE IT TAKES A LONG TIME TO BECOME A MASTER AT THIS GAME QUOTE MUSES VIKTOR KUZKIN A STAR DEFENSEMAN AND LIEUTENANT COLONEL ON THE GOLD MEDAL TEAMS OF NINETEEN SIXTY FOUR NINETEEN SIXTY EIGHT AND NINETEEN SEVENTY TWO UNFORTUNATELY AT EIGHTEEN THE KIDS ARE ALREADY TRYING TO BECOME PROFESSIONAL PLAYERS IN CANADA OR AMERICA SO IT GOES IN THE POST COMMUNIST SPORTS WORLD WHERE A CONTRACT WITH NORTH AMERICA'S NATIONAL HOCKEY LEAGUE GLITTERS MORE THAN A GOLD MEDAL AND CONGRATULATIONS FROM THE CENTRAL COMMITTEE OVER THE PAST FOUR YEARS FOR INSTANCE TWENTY TWO PLAYERS FROM THE CENTRAL SPORTS CLUB OF THE ARMY CSKA ONCE A VERITABLE FACTORY OF OLYMPIC HOCKEY TALENT HAVE DEFECTED TO THE N. H. L. INCLUDING STARS LIKE SERGEI FEDOROV AND VYACHESLAV FETISOV VIKTOR TIKHONOV THE CSKA AND OLYMPIC HEAD COACH IS STILL PROWLING BEHIND THE BENCH AND HE IS AS SURLY AS EVER ASKED WHETHER HE WOULD CONSIDER FOLLOWING THE LEAD OF HIS DEFECTING PLAYERS AND COACH IN THE N. H. L. THE OLD MASTER WHO HAS GUIDED FOUR OLYMPIC TEAMS STOMPS AWAY GRUMBLING YOU REPORTERS ALWAYS ASK THE SAME QUESTIONS I'M SICK OF IT THIS YEAR THOUGH HIS IRRITABILITY IS UNDERSTANDABLE THE GOLD MEDAL IS NO LONGER A VIRTUAL LOCK THE WANDERLUST OF MANY OF RUSSIA'S BEST FINALLY LEVELING THE INTERNATIONAL PLAYING ICE HIS TEAM DIDN'T COME TOGETHER UNTIL LATE JANUARY AND THEN IT WAS BARELY RECOGNIZABLE WITH ITS ROSTER OF UNPROVEN YOUTHFUL TALENT AND HE KNOWS HIS PLAYERS ARE MORE INTERESTED IN IMPRESSING THE UBIQUITOUS N. H. L. SCOUTS WITH THEIR INDIVIDUAL ABILITIES THAN LISTENING TO HIS HOARY LECTURES ABOUT TEAMWORK TODAY THE HALLOWED CSKA ARENA IS DEFILED WITH SPONSORS' LOGOS MCDONALD'S COCA COLA AND PITTSBURGH'S IRON CITY BEER ALTHOUGH THEY HAVE LOST MANY PLAYERS TO THE LURE OF THE WEST CSKA OFFICIALS ALSO OWE PLENTY TO THE N. H. L. AND CAPITALISM MR. KUZKIN'S OLD NUMBER FOUR JERSEY RECENTLY RETIRED HANGS ABOVE A RINK WHERE THE RUSSIAN PENGUINS NOW PLAY THE ARMY SQUAD HAVING BEEN RENAMED AFTER THE N. H. L.'S PITTSBURGH TEAM THAT RESCUED CSKA FROM FINANCIAL DISASTER BUT THEY DON'T HAVE TO LIKE IT THE TRIM FIFTY FOUR YEAR OLD MR. KUZKIN WHO COACHES THE RUSSIAN PENGUINS ACHES FOR THE DAYS WHEN PLAYERS SET OLYMPIC SUPREMACY AS THEIR HIGHEST GOAL IT WAS A DIFFERENT TIME THE GOLDEN ERA WE DIDN'T EVEN DREAM OF PLAYING PROFESSIONALLY HE REMEMBERS HE RECALLS A PLAYING CAREER WITH CSKA THAT BEGAN WHEN HE WAS EIGHTEEN AND ENDED YEARS BEFORE SUCH DREAMS WERE ALLOWED QUOTE OF COURSE QUOTE HE CONCEDES QUOTE IT WOULD HAVE BEEN INTERESTING EVERY ATHLETE WANTS TO TEST HIMSELF AT A HIGHER LEVEL SUCH A CHALLENGE IS THE ALTRUISTIC NOTE OF THE N. H. L.'S SIREN CALL THE BIG ENTICEMENT IS THE MONEY MR. FEDOROV RECENTLY RENEWED HIS CONTRACT WITH THE DETROIT RED WINGS FOR ELEVEN POINT SEVEN MILLION DOLLARS OVER FOUR YEARS MARK KELLY A HOCKEY SCOUT WHO REPRESENTS THE PITTSBURGH SIDE OF THE CSKA PENGUINS JOINT VENTURE CONCEDES THAT THE N. H. L. IS TARGETING MORE AND MORE YOUNG RUSSIAN STARS N. H. L. TEAMS ALREADY ARE SIZING UP PROMISING RUSSIAN SEVENTEEN YEAR OLDS FOR THIS YEAR'S DRAFT AND MOST IF NOT ALL OF THOSE DRAFTED WILL PACK THEIR BAGS MR. TIKHONOV HAS BEEN FIGHTING TO PERSUADE THE N. H. L. NOT TO POACH PLAYERS UNDER THE AGE OF TWENTY TWO BUT BY THE TIME THE NEXT WINTER OLYMPICS ARE HELD THE ISSUE COULD BE MOOT HOCKEY MAY FOLLOW BASKETBALL'S LEAD AND PERMIT PROFESSIONALS TO COMPETE IN THE GAMES LIKE THE U. S. HOOPSTERS' DREAM TEAM THE WORLD'S HOCKEY POWERHOUSES MIGHT BE ASSEMBLING SENSATIONAL ALL STAR SQUADS OF TOP PROFESSIONALS RUSSIA'S N. H. L. ELITE COULD THEN RETURN HOME FOR THE GAMES IT'S AN ATTRACTIVE PROSPECT BUT IT CERTAINLY ISN'T ENOUGH TO SATISFY THE OLD GUARD WE HAVE ONLY ONE DREAM HERE SAYS MR. KUZKIN AND THAT IS TO BRING THE TEAM BACK TO WHAT IT WAS BEFORE JOHN LABATT LIMITED SHUT DOWN ABOUT THIRTY PERCENT OF ITS DOMESTIC BEER PRODUCTION BY LOCKING OUT MORE THAN ONE THOUSAND WORKERS IN QUEBEC AFTER THEY REJECTED A CONTRACT PROPOSAL THE MOVE REFLECTS THE DETERMINATION OF CANADIAN BREWERS TO CUT COSTS BECAUSE OF AN EXPECTED INCREASE IN LOW PRICED IMPORTS FROM THE U. S. FOLLOWING LAST SUMMER'S BEER TRADE AGREEMENT QUOTE WE HAVE A SITUATION WHERE WE NEED TO BE COST COMPETITIVE WITH AMERICAN BREWERS THEY'RE GOING TO BE IN OUR SANDBOX WITHIN THE NEXT FEW MONTHS SAID LABATT SPOKESMAN ALAIN BOLDUC THE LOCKOUT WHICH TOOK EFFECT OVER THE WEEKEND HALTS PRODUCTION AT THE PLANT WHICH PRODUCES BEER FOR THE QUEBEC MARKET LABATT'S SECOND LARGEST IN CANADA AFTER ONTARIO MR. BOLDUC SAID THE COMPANY HAS UP TO THREE WEEKS OF INVENTORY TO CONTINUE SUPPLYING ITS DISTRIBUTION OUTLETS IN QUEBEC FRANCOIS LAPORTE SPOKESMAN FOR TEAMSTERS UNION LOCAL NINETEEN NINETY NINE SAID THERE WERE NO PLANS TO RESUME TALKS WITH THE COMPANY HE SAID THE UNION WAS WAITING FOR LABATT TO MAKE THE FIRST MOVE THE PROPOSED PACT WON THE APPROVAL OF A MAJORITY OF THE UNION'S EXECUTIVE COMMITTEE BUT IT WAS SOUNDLY DEFEATED BY SEVENTY ONE PERCENT OF THE UNION'S MEMBERSHIP DUPONT COMPANY SAID A FLORIDA JURY RULED IN ITS FAVOR IN A LAWSUIT BROUGHT BY TWO BLUEBERRY GROWERS WHO ALLEGED THAT THE COMPANY'S BENLATE DF FUNGICIDE PRODUCT HAD HARMED THEIR CROPS THE TRIAL IN THE TENTH JUDICIAL COURT IN POLK COUNTY BEGAN JANUARY THIRD THE CHEMICAL CONCERN SAID THE PLAINTIFFS HAD BEEN SEEKING EIGHT MILLION DOLLARS IN DAMAGES DUPONT SAID THE JURY RULED THAT QUOTE THERE WAS NO PRODUCT DEFECT AND NO NEGLIGENCE ON THE PART OF DUPONT QUOTE AND CALLED THE VERDICT A QUOTE MAJOR TRIAL WIN IN ITS BATTLE TO VINDICATE QUOTE THE CONTROVERSIAL BENLATE PRODUCT ATTORNEYS FOR THE TWO GROWERS COULDN'T BE REACHED LATE YESTERDAY DUPONT STILL FACES HUNDREDS OF LAWSUITS FROM FARMERS PLANT NURSERY OPERATORS AND THE LIKE WHO CONTEND THAT THE FUNGICIDE HURT THEIR CROPS THE COMPANY RECALLED THE GRANULATED FORM OF BENLATE IN LATE NINETEEN NINETY ONE AND LATER PAID OUT NEARLY FIVE HUNDRED MILLION DOLLARS IN BENLATE CLAIMS BUT IT HALTED SUCH PAYOUTS IN NOVEMBER NINETEEN NINETY TWO ASSERTING THAT TESTS IT SPONSORED HAD PROVED THE PRODUCT COULDN'T HAVE CAUSED THE DAMAGE THE PLAINTIFFS ALLEGE SINCE THEN THE COMPANY HAS EITHER GONE TO COURT OVER SUCH CLAIMS OR SETTLED PRIVATELY IN THE CASES THAT HAVE GONE TO TRIAL DUPONT HAS HAD A MIXED RECORD FOR THE MOST PART IN CASES WHERE IT HAS BEEN ORDERED TO PAY DAMAGES PLAINTIFFS HAVE RECEIVED MUCH LESS THAN THEY HAD BEEN SEEKING IN ONE FEDERAL COURT CASE THE PLAINTIFFS SETTLED WHILE THE JURY WAS DELIBERATING IN THE LATTER PART OF NINETEEN NINETY THREE ONE FLORIDA COURT FOUND THE COMPANY LIABLE FOR THREE MILLION DOLLARS IN DAMAGES TO AN ORCHID GROWER AND ANOTHER JURY ORDERED DUPONT TO PAY THREE POINT TWO MILLION DOLLARS FAR LESS THAN THE TWENTY EIGHT MILLION DOLLARS PLAINTIFFS HAD BEEN SEEKING TO CERTAIN NURSERY OWNERS AN ARKANSAS JURY FOUND THE COMPANY LIABLE FOR TEN POINT SEVEN MILLION DOLLARS IN ANOTHER CASE BUT DUPONT ALSO WON A TEXAS BENCH TRIAL AND HAS SUCCEEDED IN GETTING SOME OTHER COMPLAINTS THROWN OUT IN A WIDENING BREACH WITH HAITIAN PRESIDENT JEAN BERTRAND ARISTIDE THE U. S. IS BACKING A PLAN THAT AIMS TO RESTORE DEMOCRACY ON THE ISLAND NATION BUT DOESN'T INCLUDE A FIRM DATE FOR THE OUSTED PRESIDENT'S RETURN THE PLAN WHICH IS BEING PUSHED BY A HAITIAN PARLIAMENTARY DELEGATION CALLS FOR MR. ARISTIDE'S EVENTUAL RESTORATION AFTER HE NAMES A NEW PRIME MINISTER AND A NEW BROAD BASED GOVERNMENT TAKES CERTAIN ACTIONS BUT UNLIKE A PREVIOUS AGREEMENT LAST SUMMER TO END THE CRISIS IN HAITI THE CURRENT BLUEPRINT DOESN'T INCLUDE A SPECIFIC TIMETABLE FOR THE RESTORATION OF MR. ARISTIDE WHO WAS OVERTHROWN IN A SEPTEMBER NINETEEN NINETY ONE MILITARY COUP AFTER BEING ELECTED BY A WIDE MAJORITY A SENIOR U. S. OFFICIAL INSISTED THAT THE ADMINISTRATION HAD NEVER CALLED FOR MR. ARISTIDE'S IMMEDIATE RETURN AND WASN'T BACKING AWAY FROM HIM INSTEAD IT HAS ALWAYS PREFERRED TO HAVE HAITI FIRST BUILD A FUNCTIONING GOVERNMENT HOWEVER THE PROPOSAL COULD POSSIBLY LEAD TO A SITUATION IN WHICH MR. ARISTIDE DOESN'T RETURN MICHAEL BARNES A FORMER U. S. CONGRESSMAN WHO IS MR. ARISTIDE'S CHIEF AMERICAN ADVISER SAID YESTERDAY THAT QUOTE I WOULDN'T RECOMMEND THAT THE GOVERNMENT OF HAITI ENTER INTO ANY NEW AGREEMENT THAT DOESN'T ASSURE THE RAPID RETURN OF THE PRESIDENT ON A DATE CERTAIN QUOTE MR. BARNES WHOSE COMMENTS REFLECT MR. ARISTIDE'S VIEWS COMPLAINED THAT THE U. S. HASN'T FOLLOWED THROUGH ON ITS COMMITMENT TO INCREASE INTERNATIONAL SANCTIONS AGAINST HAITI'S MILITARY RULERS BY JANUARY FIFTEENTH THE SENIOR U. S. OFFICIAL DISPLAYING PIQUE WITH MR. ARISTIDE INDICATED THAT THE HAITIAN PRESIDENT EITHER LACKS THE FLEXIBILITY OR DOESN'T UNDERSTAND THE STEPS THAT WILL BE NECESSARY TO RESOLVE THE CRISIS IN HAITI AND PREPARE FOR HIS RETURN SPEAKING OF THE PARLIAMENTARIANS' PLAN THE U. S. OFFICIAL ACCUSED MR. ARISTIDE OF BEING NOT FORTHCOMING IN DOING ANY OF THIS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION LAWRENCE PEZZULLO THE STATE DEPARTMENT'S SPECIAL ADVISER ON HAITI HAS BEEN PRESSING MR. ARISTIDE FOR ABOUT TEN DAYS TO ACCEPT THE LATEST PLAN MR. ARISTIDE WANTS THE INTERNATIONAL COMMUNITY TO MOVE FIRST WITH MORE SANCTIONS THROUGH THE UNITED NATIONS SECURITY COUNCIL THE U. S. ALONG WITH CANADA FRANCE AND VENEZUELA HAS FORMULATED HAITIAN SANCTIONS THAT WOULD EXPAND PENALTIES ALREADY IN FORCE BY NATIONS IN THIS HEMISPHERE THE CONTEMPLATED SANCTIONS INCLUDE ASKING U. N. MEMBERS TO FREEZE THE OVERSEAS ASSETS AND RESTRICT THE TRAVEL OF MILITARY LEADERS AND THEIR SUPPORTERS AND TO IMPOSE A TRADE EMBARGO AND BAN ON COMMERCIAL AIR FLIGHTS BUT ANOTHER SENIOR U. S. OFFICIAL INDICATED THAT THERE COULD STILL BE A LONG CONSULTATION PROCESS AHEAD AT THE U. N. WE'RE NOT ON A FAST TRACK TODAY BUT WE'RE LAYING THE GROUNDWORK THE OFFICIAL SAID AND THE OFFICIAL WHO BRIEFED REPORTERS HERE YESTERDAY INDICATED HE WASN'T ENTHUSIASTIC ABOUT IMPOSING NEW SANCTIONS BECAUSE THEY COULD DESTROY HAITI COMPLETELY THE SENIOR U. S. OFFICIAL INSISTED THAT THE U. S. IS PURSUING AS DILIGENTLY AS IT MAY A PROGRAM OF RESTORING DEMOCRACY AND THE PRESIDENT OF THE COUNTRY BUT THE OFFICIAL ADDED THAT MR. ARISTIDE NEEDS TO UNDERSTAND THAT HE MUST WORK WITH A BROAD BASED GOVERNMENT AND THAT WOULD MEAN CURBING SOME OF HIS PRESIDENTIAL POWERS MR. ARISTIDE GOT INTO A SPAT WITH THE CLINTON ADMINISTRATION EARLIER THIS MONTH WHEN HE ACCUSED THE U. S. OF ERECTING A FLOATING BERLIN WALL TO STOP HAITIANS FROM FLEEING THE ISLAND'S MILITARY DICTATORSHIP STATE DEPARTMENT SPOKESMAN MICHAEL MCCURRY SAID MR. ARISTIDE'S COMMENT ON THE U. S. POLICY OF INTERDICTION AND REPATRIATION AMOUNTS IN EFFECT TO ENCOURAGING PEOPLE TO LEAVE HAITI IN A WAY THAT COULD RESULT IN DEATHS AT SEA THE ADMINISTRATION BELIEVES THE CURRENT EMBARGO IMPOSED BY THE ORGANIZATION OF AMERICAN STATES IS SQUEEZING HAITI'S MILITARY RULERS AND BEGINNING TO CAUSE DIVISIONS WITHIN THEIR RANKS UNDER THE PLAN PROPOSED BY THE HAITIAN MEMBERS OF PARLIAMENT THE LEGISLATURE WOULD APPROVE AN AMNESTY FOR THOSE INVOLVED IN THE NINETEEN NINETY ONE COUP THE MILITARY LEADER RAOUL CEDRAS WOULD RETIRE AND MICHEL FRANCOIS THE POWERFUL HEAD OF THE PORT AU PRINCE POLICE WOULD BE TRANSFERRED TO ANOTHER POST THE NEW PRIME MINISTER WOULD THEN BE CONFIRMED BY HAITI'S PARLIAMENT PROMPTING THE END OF INTERNATIONAL SANCTIONS AND LEADING TO MR. ARISTIDE'S RETURN WILLIAMS COMPANIES TULSA OKLAHOMA SAID A UNIT AGREED TO PAY PUBLIC SERVICE COMPANY OF NEW MEXICO ONE HUNDRED FIFTY FIVE MILLION DOLLARS FOR NATURAL GAS GATHERING AND PROCESSING ASSETS IN NEW MEXICO WILLIAMS SAID ITS WILLIAMS FIELD SERVICES GROUP WHICH SPECIALIZES IN GATHERING AND PROCESSING NATURAL GAS AGREED TO ACQUIRE PUBLIC SERVICE FACILITIES AND OPERATIONS IN NEW MEXICO'S SAN JUAN AND PERMIAN BASINS WILLIAMS A PIPELINE NATURAL GAS AND TELECOMMUNICATIONS COMPANY SAID THE PUBLIC SERVICE ASSETS INCLUDE TWO NATURAL GAS PROCESSING PLANTS NEAR BLOOMFIELD N. M. A PROCESSING PLANT SOUTHEAST OF BLOOMFIELD A SMALLER PROCESSING PLANT AND AN AMINE TREATMENT PLANT NEAR CARLSBAD N. M. AND APPROXIMATELY ONE THOUSAND FOUR HUNDRED MILES OF ASSOCIATED GAS GATHERING SYSTEMS A SPOKESMAN FOR PUBLIC SERVICE BASED IN ALBUQUERQUE N. M. SAID THE SALE IS QUOTE RIGHT ON LINE QUOTE WITH THE UTILITY COMPANY'S PLANS TO SHED GAS GATHERING OPERATIONS AND FOCUS ON ELECTRIC AND GAS SERVICES FEDERATED DEPARTMENT STORES INCORPORATED WILL MEET WITH CREDITORS OF R. H. MACY AND COMPANY THIS WEEK THE FIRST FORMAL STEPS BY THE DEPARTMENT STORE RETAILER TO WOO CREDITORS IN ITS PLAN TO MERGE WITH MACY FEDERATED EXECUTIVES WILL MEET WITH SECURED CREDITORS OF MACY SUCH AS FIDELITY INVESTMENTS TODAY AT THE NEW YORK OFFICES OF JONES DAY REAVIS AND POGUE THE CLEVELAND BASED LAW FIRM THAT REPRESENTS FEDERATED FEDERATED CONFIRMED IT WILL MEET WEDNESDAY WITH MACY'S UNSECURED CREDITORS FEDERATED RECENTLY PAID FOUR HUNDRED FORTY NINE POINT THREE MILLION DOLLARS TO ACQUIRE HALF OF PRUDENTIAL INSURANCE COMPANY OF AMERICA'S HOLDINGS OF CERTAIN MACY'S DEBT THE DEBT REPRESENTS A MAJOR CLAIM IN MACY'S CHAPTER ELEVEN BANKRUPTCY REORGANIZATION AND ITS PURCHASE GIVES FEDERATED A MAJOR VOICE IN FASHIONING A REORGANIZATION FEDERATED HAS SAID IT WANTS TO MERGE WITH MACY WHICH HAS SAID IT WANTS TO REMAIN INDEPENDENT FEDERATED HAS BEEN MEETING QUIETLY ON A ONE ON ONE BASIS WITH CREDITORS' REPRESENTATIVES EIGHT MAJOR GROUPS OWED SIX BILLION DOLLARS BY MACY TO EXPLAIN WHY IT WANTED TO MERGE WITH MACY BUT THIS WEEK MARKS THE FIRST OFFICIAL GROUP MEETINGS WITH CREDITORS CORPORATE AMERICA'S PROFIT STREAK CONTINUED IN THE FOURTH QUARTER BUT SOME ANALYSTS WARN THAT FUTURE EARNINGS GAINS PROBABLY WILL BE LESS SPECTACULAR AND HARDER TO COME BY IF THEY ARE RIGHT THE STOCK MARKET COULD HIT SOME POTHOLES WITH INTEREST RATES LIKELY TO MOVE HIGHER IN COMING MONTHS INVESTORS WILL LOOK INCREASINGLY TO ROBUST EARNINGS REPORTS TO POWER THE MARKET UPWARD SO FAR CORPORATE AMERICA HAS DELIVERED ACCORDING TO ZACKS INVESTMENT RESEARCH SIXTY PERCENT OF THE SEVEN HUNDRED ELEVEN COMPANIES IN THE DOW JONES INDUSTRY GROUPS HAVE REPORTED EARNINGS IN LINE WITH OR BETTER THAN ANALYSTS' ESTIMATES THOSE COMPANIES THAT SURPASSED EXPECTATIONS DID SO BY TWO POINT THREE PERCENT ON AVERAGE MOREOVER FOURTH QUARTER EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL CHARGES AND GAINS ROSE TWENTY FIVE POINT THREE PERCENT FROM THE YEAR EARLIER QUARTER THAT FIGURE SURPASSES THE NINETEEN POINT EIGHT PERCENT GROWTH RATE IN THE THIRD QUARTER BUT DON'T LOOK FOR REPEAT PERFORMANCES IN THE QUARTERS TO COME NO ONE EXPECTS THE ECONOMY TO GROW ANY FASTER THAN IT DID IN THE FOURTH QUARTER AND NEITHER WILL CORPORATE PROFITS MANY ANALYSTS CONCLUDE QUOTE I THINK EARNINGS WILL STILL GROW BUT AT A SLOWER RATE THAN LAST YEAR QUOTE SAYS ELAINE GARZARELLI STOCK STRATEGIST AT LEHMAN BROTHERS THAT'S ONE REASON SHE SAYS THAT SOME OTHER STOCK STRATEGISTS ARE BEARISH ON THE MARKET THEY FEEL THAT ONCE EARNINGS GROWTH PEAKS THE STOCK MARKET STARTS TO DECLINE BUT MS. GARZARELLI SAYS ONE ONLY HAS TO LOOK BACK TO NINETEEN SIXTY THREE A PERIOD WHICH SHE LIKENS TO THE CURRENT ONE AND NOTICE THAT THE STOCK MARKET KEPT RISING EVEN THOUGH PROFITS HAD ALREADY PEAKED NO DOUBT THE KEY TO SUSTAINED PROFIT GROWTH IN COMING QUARTERS WILL BE STRONGER DEMAND FOR GOODS AND SERVICES AND THE ABILITY FOR COMPANIES TO RAISE PRICES THOUGH PROFITS GREW AT A DOUBLE DIGIT RATE AS THE ECONOMY SOARED IN THE FOURTH QUARTER REVENUE GROWTH CONTINUED TO LAG SIGNIFICANTLY SAYS BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT AT ZACKS INVESTMENT INDEED AS HAS BEEN THE CASE FOR THE PAST FOUR QUARTERS MOST OF THE PROFIT GAINS WERE DUE TO COST CUTTING AND LOW INTEREST RATES BETTER PRICING CERTAINLY IS GOING TO BE THE KEY TO BETTER EARNINGS SAYS MR. ZACKS HE NOTES THAT SEVERAL OF THE COMPANIES TURNING IN POSITIVE FOURTH QUARTER EARNINGS SURPRISES HAD PRICING POWER THESE INCLUDED AUTO COMPANIES BUILDING MATERIALS CONCERNS FOREST PRODUCTS FIRMS AND PAPER PRODUCTS COMPANIES WHAT'S MORE MANY OF THE COMPANIES THAT DISAPPOINTED INVESTORS WITH THEIR EARNINGS REPORTS WERE IN INDUSTRIES THAT ARE STILL SUFFERING FROM A LACK OF PRICING POWER AMONG THEM ARE PRECIOUS METALS PRODUCERS ALUMINUM COMPANIES CONTAINER AND PACKAGING FIRMS AIRLINES AND COMPUTER MAKERS BUT WHILE PRICING MEANT POWER FOR MANY CORPORATIONS MR. ZACKS DOESN'T EXPECT IT TO BECOME A BROAD BASED TREND AT SOME STAGE HE SAYS ALL OF THAT COST CUTTING REACHES A POINT OF DIMINISHING RETURNS FOR THE ECONOMY AS A WHOLE HE EXPLAINS THAT AS COMPANIES CONTINUE TO CUT COSTS AND LAY OFF WORKERS DEMAND WILL CONTINUE TO BE SUBDUED GIVING FIRMS VERY LITTLE LEEWAY TO RAISE PRICES IN NINETEEN NINETY FOUR HE PROJECTS EARNINGS WILL GROW SEVENTEEN POINT OH FOUR PERCENT A SLOWDOWN FROM LAST YEAR'S ESTIMATED TWENTY THREE POINT SEVEN FIVE PERCENT AND WHILE THAT'S QUITE RESPECTABLE CONSIDERING THE MATURITY OF THE BUSINESS CYCLE SOME ANALYSTS FEAR THAT IT WON'T BE ROBUST ENOUGH FOR THE LIKES OF STOCK INVESTORS GAIL DUDACK STOCK STRATEGIST AT S. G. WARBURG WORRIES THAT THE STRONG ECONOMY IN THE FOURTH QUARTER HAS INFLATED EARNINGS EXPECTATIONS ON WALL STREET SHE THINKS THE STOCK MARKET COULD TAKE A TUMBLE IF THE STREET'S SUGAR COATED EARNINGS FORECASTS AREN'T MET THE RESULTS OF THE FOURTH QUARTER OVERALL HAS BOLSTERED CORPORATE AMERICA AND ANALYSTS WHO ARE NOW LOOKING AT THE POSSIBILITY OF PUTTING INTO PLACE PRICE INCREASES SHE SAYS BUT MS. DUDACK IS NOT SO CONFIDENT THAT PRICING INCREASES CAN EASILY BE PASSED ALONG TO CUSTOMERS SHE SAYS MANY INDUSTRIES ARE STILL PLAGUED WITH OVERCAPACITY AND EVEN THOSE COMPANIES THAT ARE FACING BLOCKBUSTER DEMAND ARE FAVORING INCREASING THEIR MARKET SHARE OVER RAISING PRICES THE CONSENSUS IS THAT PRODUCTIVITY PLUS PRICING POWER WILL COMBINE TO CREATE SPECTACULAR EARNINGS IN NINETEEN NINETY FOUR SHE SAYS WHILE THE POTENTIAL FOR THAT EXISTS I THINK IT'S FIFTY TO FIFTY MY BIGGEST CONCERN IS THAT THE ECONOMIC NEWS HAS BUILT UP CONFIDENCE AMONG CORPORATIONS AND ANALYSTS AND THERE ARE GOING TO BE SOME DISAPPOINTMENTS HERE QUOTE WHILE MS. GARZARELLI OF LEHMAN BROTHERS REMAINS BULLISH SHE THINKS INVESTORS CAN MAXIMIZE THEIR GAINS BY UNEARTHING SECTORS OF THE MARKET THAT OFFER BETTER THAN EXPECTED EARNINGS GROWTH IN HER VIEW STOCKS THAT ARE SENSITIVE TO THE ECONOMIC CYCLE WILL OFFER THE GREATEST GAINS FOR INVESTORS FOR INSTANCE SHE IS PROJECTING AN UPTURN IN PLANT AND EQUIPMENT SPENDING THROUGH NINETEEN NINETY FIVE THAT SHOULD HELP BOOST HEAVY MACHINERY COMMODITY AND BUILDING STOCKS SHE ALSO EXPECTS CONSUMER DURABLES SUCH AS AUTOS AND APPLIANCES TO CONTINUE FARING WELL MAKING THOSE STOCKS AN ATTRACTIVE INVESTMENT ALL THESE SECTORS SHOULD GROW TWICE AS FAST AS GROSS DOMESTIC PRODUCT SO THEIR EARNINGS SHOULD GROW TWICE AS FAST AS THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SAYS MS. GARZARELLI EDWARD YARDENI CHIEF ECONOMIST AT C. J. LAWRENCE SAYS INVESTORS ARE LOOKING AT THE BEST OF BOTH WORLDS THE THING TO BE IMPRESSED WITH IS HOW WELL PROFITS HAVE COME ALONG WITHOUT MUCH TOP LINE GROWTH HE SAYS I THINK THIS YEAR YOU ARE GOING TO SEE SOME PRICING POWER AND FOR THE FIRST TIME SOME UNIT SALES GROWTH STOCKS ENDED MIXED IN AN ABBREVIATED TRADING SESSION YIELDING TO A SEVERE WINTER SNOWSTORM THE NEW YORK STOCK EXCHANGE DECIDED TO STOP TRADING AT TWO THIRTY P. M. E. S. T. INSTEAD OF THE NORMAL FOUR P. M. CLOSE IT WAS THE FIRST TIME BIG BOARD TRADING WAS CURTAILED BECAUSE OF THE WEATHER SINCE SEPTEMBER TWENTY SEVENTH NINETEEN EIGHTY FIVE WHEN THE EXCHANGE WAS CLOSED ALL DAY BECAUSE OF HURRICANE GLORIA THE NASDAQ STOCK MARKET AND THE AMERICAN STOCK EXCHANGE ALSO CLOSED EARLY THE DOW JONES INDUSTRIAL AVERAGE EASED ZERO POINT FIVE SIX POINTS TO THREE THOUSAND EIGHT HUNDRED NINETY FOUR POINT SEVEN EIGHT STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX GAINED ONE POINT TWO FIVE TO FOUR HUNDRED SEVENTY POINT ONE EIGHT AND THE NASDAQ COMPOSITE INDEX LOST TWO POINT OH THREE TO SEVEN HUNDRED EIGHTY ONE POINT THREE NINE FOR THE WEEK THE DOW INDUSTRIALS GAINED ZERO POINT SIX PERCENT THE S. AND P. FIVE HUNDRED INCHED UP ZERO POINT ZERO EIGHT PERCENT AND THE NASDAQ COMPOSITE CLIMBED ZERO POINT FIVE PERCENT VOLUME TOTALED A MODEST TWO HUNDRED ELEVEN POINT EIGHT MILLION SHARES DOWN FROM THREE HUNDRED TWENTY FIVE POINT EIGHT MILLION SHARES ON THURSDAY DECLINING ISSUES OUTNUMBERED ADVANCERS ONE THOUSAND TWO HUNDRED FOURTEEN TO EIGHT HUNDRED ONE STOCKS WERE MIXED IN SPITE OF A LABOR DEPARTMENT REPORT SHOWING THAT INFLATION WAS WELL UNDER CONTROL THE NEWS SPARKED A RALLY IN THE BOND MARKET BUT STOCK INVESTORS WERE MORE SUBDUED PART OF THE REASON WAS A COMMERCE DEPARTMENT REPORT THAT JANUARY RETAIL SALES WERE NOT AS STRONG AS EXPECTED THE AUTO STOCKS THE RECENT STARS AMONG THE CYCLICALS FELL FOR A THIRD DAY GENERAL MOTORS DROPPED ONE AND ONE EIGHTH TO SIXTY ONE AND ONE EIGHTH FORD MOTOR ONE HALF TO SIXTY FIVE AND ONE HALF AND CHRYSLER THREE QUARTERS TO FIFTY NINE PROCTER AND GAMBLE ADDED ONE AND THREE EIGHTHS TO FIFTY EIGHT AND THREE QUARTERS DEAN WITTER REYNOLDS PUT A BUY RECOMMENDATION ON THE CONSUMER PRODUCTS MAKER'S SHARES THE BROKERAGE FIRM CITED P. AND G'S SUCCESS AT CUTTING OPERATING COSTS AND A POTENTIAL ACCELERATION IN EARNINGS TANDY CORPORATION GAINED ONE AND THREE QUARTERS TO FORTY SIX AND ONE QUARTER THIS NEWSPAPER REPORTED THAT THE FORT WORTH TEXAS CONSUMER ELECTRONICS RETAILER EXPECTS TO POST FOURTH QUARTER EARNINGS FROM OPERATIONS OF ABOUT ONE DOLLAR AND TWO CENTS A SHARE UP TWENTY ONE PERCENT FROM EIGHTY FOUR CENTS A YEAR EARLIER THAT FIGURE EXCLUDES A GAIN FROM THE COMPANY'S PROGRAM OF DIVESTING NONCORE BUSINESSES CISCO SYSTEMS JUMPED TWO AND THREE EIGHTHS TO SEVENTY FOUR AND THREE EIGHTHS THE MENLO PARK CALIFORNIA COMPUTER NETWORKING SYSTEM MANUFACTURER REPORTED BETTER THAN EXPECTED FISCAL SECOND QUARTER EARNINGS OF TWENTY NINE CENTS A SHARE UP FROM FIFTEEN CENTS A YEAR EARLIER CLASS A SHARES OF NEW YORK TIMES COMPANY ROSE ONE AND ONE QUARTER TO TWENTY SEVEN AND ONE HALF THE PUBLISHING CONCERN'S FOURTH QUARTER REPORT SHOWED A LOSS OF TWENTY THREE CENTS A SHARE COMPARED WITH A YEAR AGO LOSS OF FIVE CENTS HOWEVER THE LATEST QUARTER'S RESULTS WERE HURT BY A THIRTY MILLION DOLLAR PRETAX CHARGE INFORMIX RALLIED ONE AND ONE EIGHTH TO TWENTY ONE AFTER FURMAN SELZ INITIATED COVERAGE OF THE MENLO PARK CALIFORNIA SOFTWARE DEVELOPER WITH A QUOTE BUY QUOTE RATING COLUMBIA GAS ROSE ONE AND SEVEN EIGHTHS TO TWENTY SEVEN AND THREE EIGHTHS THE WILMINGTON DELAWARE COMPANY REPORTED FOURTH QUARTER EARNINGS OF ONE DOLLAR AND THIRTY SEVEN CENTS A SHARE COMPARED WITH ONE DOLLAR AND SEVENTY THREE CENTS A YEAR EARLIER BOTH PERIODS INCLUDED EXTRAORDINARY ITEMS GOLDMAN SACHS AND COMPANY ADDED THE STOCK TO ITS RECOMMENDED LIST FRIDAY PENN CENTRAL DROPPED ONE AND SEVEN EIGHTHS TO TWENTY SIX AND SEVEN EIGHTHS THE CINCINNATI COMPANY SAID IT IS CONSIDERING THE PURCHASE OF SOME PERSONAL INSURANCE LINES FROM A UNIT OF AMERICAN FINANCIAL CORPORATION FOR THREE HUNDRED EIGHTY MILLION DOLLARS DAVE PETTIT CONTRIBUTED TO THIS ARTICLE NATIONAL MEDIA CORPORATION SAID IT WILL LAUNCH A TELEVISED HOME SHOPPING BUSINESS IN JAPAN THROUGH AN AGREEMENT WITH THE JAPANESE TRADING COMPANY MITSUI AND COMPANY THE NATION'S LEADING INFOMERCIAL MARKETER BASED IN PHILADELPHIA SAID IT WILL PROVIDE INFOMERCIAL PROGRAMMING FOR A TRIAL THIS SPRING WHILE MITSUI WILL ARRANGE FOR BROADCASTING AND MARKETING THE PROJECT COULD BE EXPANDED TO OTHER ASIAN COUNTRIES AND AUSTRALIA NATIONAL MEDIA SAID THE ANNOUNCEMENT COMES AS VALUEVISION INTERNATIONAL INCORPORATED A MINNEAPOLIS HOME SHOPPING NETWORK HAS LAUNCHED A TEN DOLLAR AND FIFTY CENT A SHARE TENDER OFFER FOR NATIONAL MEDIA SHARES NATIONAL MEDIA HASN'T MADE A RECOMMENDATION ON THE OFFER A NATIONAL MEDIA SPOKESMAN SAID THE MITSUI ANNOUNCEMENT IS UNRELATED TO THE TENDER OFFER BUT ADDED THAT QUOTE ANYTHING YOU DO THAT MAKES YOUR BUSINESS STRONGER IS A POSITIVE THING QUOTE THE JUSTICE DEPARTMENT SAYS A FEDERAL COURT AT LEAST FOR NOW SHOULDN'T GRANT AMERICAN TELEPHONE AND TELEGRAPH COMPANY A LEGAL WAIVER THAT WOULD REMOVE AN OBSTACLE TO ITS PROPOSED ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INCORPORATED WHILE THE ACTION PRESENTS A SETBACK TO THE TELEPHONE COMPANY'S EFFORT TO SECURE MCCAW IT DOESN'T NECESSARILY THWART IT A. T. AND T. PREDICTED THAT IT WILL BE ABLE TO PERSUADE THE COURT TO GRANT THE WAIVER DESPITE THE DEPARTMENT'S OPPPOSITION AND A DEPARTMENT SPOKESWOMAN SAID THE CLINTON ADMINISTRATION HASN'T YET CONCLUDED ITS REVIEW OF THE PROPOSED MERGER ITSELF QUOTE THIS IS NOT OUR JUDGMENT REGARDING THE MERGER OF A. T. AND T. AND MCCAW QUOTE SAID THE SPOKESWOMAN GINA TALAMONA THIS FILING DOES NOT SAY WHAT WE'RE DOING REGARDING THE MERGER WE'RE STILL CONFIDENT THE MERGER WILL GO OFF ON SCHEDULE AN A. T. AND T. SPOKESMAN SAID THE JUSTICE DEPARTMENT IS DENYING OUR REQUEST FOR AN EXPEDITED WAIVER WHICH MEANS THEY WANT MORE INFORMATION FROM US WE'LL PROVIDE WHATEVER INFORMATION THE COURT THINKS IS NECESSARY A. T. AND T. WANTS THE FEDERAL DISTRICT COURT IN WASHINGTON TO ISSUE A WAIVER FROM A CONSENT DECREE THAT PREVENTS IT FROM OWNING STOCK OR ASSETS OF BELL OPERATING COMPANIES BECAUSE MCCAW OWNS INTERESTS IN CELLULAR SYSTEMS THAT ARE CONTROLLED BY BELL COMPANIES A. T. AND T. WOULD NEED THE WAIVER BEFORE COMPLETING THE PLANNED ACQUISITION IN A MEMORANDUM FILED WITH THE COURT THE DEPARTMENT SAID A. T. AND T. PROVIDED NO FACTUAL SUPPORT FOR THE WAIVER QUOTE A. T. AND T. DOES NOT EXPLAIN WHY THE COURT SHOULD CONCLUDE THAT A. T. AND T.'S OBTAINING SIGNIFICANT OR CONTROLLING INTEREST IN THESE CELLULAR SYSTEMS WHICH ARE OBLIGED TO PROVIDE EQUAL ACCESS TO A. T. AND T.'S INTEREXCHANGE COMPETITORS WILL NOT RESULT IN THE VERY EVILS THE DECREE WAS INTENDED TO PREVENT QUOTE A. T. AND T. HAS SAID A WAIVER ISN'T NEEDED BUT THAT IT WOULDN'T BE DIFFICULT TO OBTAIN ONE IF NECESSARY THE COMPANY HAS ARGUED THAT THE CONSENT DECREE THAT BROKE UP THE COMPANY PROHIBITED IT FROM REACQUIRING BELL ASSETS A. T. AND T. OWNED AT THE TIME OF THE BREAKUP IT ASSERTS THAT THE CELLULAR FRANCHISES AREN'T IN THAT CATEGORY IF FEDERAL JUDGE HAROLD GREENE REFUSES TO GRANT A WAIVER A. T. AND T. COULD APPEAL OR RESTRUCTURE ITS DEAL WITH MCCAW SPECIFICALLY MCCAW WOULD HAVE TO SEVER ITS BUSINESS RELATIONSHIPS WITH THE BELL COMPANIES IN A NUMBER OF LUCRATIVE CELLULAR MARKETS INCLUDING LOS ANGELES AND HOUSTON WHERE MCCAW'S SUBSIDIARY L. I. N. BROADCASTING INCORPORATED OPERATES A CELLULAR PHONE COMPANY WITH BELLSOUTH CORPORATION IN THE SAN FRANCISCO BAY AREA TOO A JOINT VENTURE BETWEEN MCCAW AND PACIFIC TELESIS GROUP OFFERS CELLULAR SERVICE THIS COULD MAKE MCCAW A LESS DESIRABLE PROPERTY TO A. T. AND T. WHICH IS SEEKING TO SET UP AN UBIQUITOUS NATIONAL WIRELESS SERVICE THAT TAKES IN THE LARGEST U. S. MARKETS BORDEN INCORPORATED'S CHIEF FINANCIAL OFFICER AND ITS GENERAL COUNSEL ARE LEAVING THE BELEAGUERED FOOD AND CHEMICALS COMPANY AS PART OF A MANAGEMENT SHAKE UP BORDEN YESTERDAY SAID LAWRENCE O. DOZA ITS FIFTY FIVE YEAR OLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR NEARLY NINE YEARS WILL TAKE EARLY RETIREMENT EFFECTIVE MARCH FIRST EARLIER THIS MONTH WALTER W. KOCHER BORDEN'S VICE PRESIDENT AND GENERAL COUNSEL RESIGNED AFTER TWENTY FIVE YEARS WITH THE COMPANY IN ADDITION PEOPLE CLOSE TO BORDEN SAY GEORGE J. WAYDO ONE TIME EXECUTIVE VICE PRESIDENT IN CHARGE OF THE STRUGGLING SNACK FOOD UNIT IS EXPECTED TO LEAVE BORDEN AFTER COMPLETING AN INTERNATIONAL ASSIGNMENT MOST RECENTLY MR. WAYDO FIFTY SERVED AS A VICE PRESIDENT IN CHARGE OF SPECIAL PROJECTS MESSRS DOZA KOCHER AND WAYDO COULDN'T BE REACHED FOR COMMENT BORDEN ALSO DECLINED TO COMMENT ON THE CHANGES BUT PEOPLE FAMILIAR WITH THE SITUATION SAY THE DEPARTURES OF MESSRS DOZA AND KOCHER AS WELL AS THE EXPECTED RESIGNATION OF MR. WAYDO ARE PART OF A MANAGEMENT OVERHAUL BY ERVIN R. SHAMES BORDEN'S RECENTLY APPOINTED CHIEF EXECUTIVE OFFICER IN THE PAST BORDEN'S MANAGEMENT HASN'T BEEN HIGHLY REGARDED PARTICULARLY IN THE FOOD INDUSTRY QUOTE OBVIOUSLY THERE'S A CHANGING OF THE GUARD GOING ON QUOTE SAYS JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INCORPORATED TO SOME EXTENT DOZA REPRESENTS A SCOREKEEPER OF THE PAST REGIME IN A STATEMENT MR. SHAMES PRAISED MR. DOZA FOR CREATING INNOVATIVE LOW COST CORPORATE FINANCING VEHICLES BUT OTHERS HAVE MORE MIXED REACTIONS TO THE DECISIONS MADE DURING HIS TENURE GOLDMAN SACHS AND COMPANY'S NOMI GHEZ SAYS THAT IN NINETEEN NINETY ONE BORDEN CREATED AN UNUSUAL PARTNERSHIP THAT BASICALLY ALLOWED IT TO REDUCE SOME OF ITS DEBT UNDER THE PARTNERSHIP BORDEN PUT IN AS ASSETS ITS BEST KNOWN TRADEMARKS INCLUDING CRACKER JACK AND CREMORA CREAMER IN EXCHANGE AN OUTSIDE INVESTOR CONTRIBUTED FIVE HUNDRED MILLION DOLLARS IT WAS ALL GIMMICKS SAID MS. GHEZ WHO ADDED THAT THE PARTNERSHIP ENABLED BORDEN TO BOOK A GAIN AND KEEP THE FIVE HUNDRED MILLION DOLLARS OFF ITS DEBT TOTAL IT WAS A FINANCING VEHICLE THAT ALLOWED THEM TO UNDERESTIMATE DEBT LEVELS DISGUISED IN THE FORM OF SOMETHING ELSE PEOPLE FAMILIAR WITH BORDEN ADD THAT MR. DOZA WAS PERHAPS TOO CLOSELY ASSOCIATED WITH THE COMPANY'S PAST PARTICULARLY ITS LAST TWO RESTRUCTURING EFFORTS WHICH DID LITTLE TO BOLSTER RESULTS BORDEN DECLINED TO COMMENT ON MS. GHEZ'S STATEMENTS BORDEN SAID IT IS SEEKING AN OUTSIDE REPLACEMENT FOR MR. DOZA GEORGE P. MORRIS VICE PRESIDENT AND CHIEF STRATEGIC OFFICER HAS BEEN SELECTED TO ACT AS CHIEF FINANCIAL OFFICER IN THE INTERIM THE DEPARTURE OF MR. KOCHER FIFTY NINE IS SAID TO BE PRIMARILY BECAUSE OF COST CONSIDERATIONS MR. KOCHER'S FUNCTIONS OVERLAPPED WITH THOSE OF CHIEF ADMINISTRATIVE OFFICER ALLAN L. MILLER AND THE DECISION IS SAID TO HAVE COME DOWN TO SELECTING WHICH ONE SHOULD DEPART BUT THE EXPECTED DEPARTURE OF MR. WAYDO WHO IS SAID TO HAVE ALREADY NEGOTIATED A SEVERANCE PACKAGE WITH BORDEN CONCLUDES A MORE CONTROVERSIAL CAREER FROM NINETEEN EIGHTY FIVE TO MARCH NINETEEN NINETY THREE MR. WAYDO SERVED AS EXECUTIVE VICE PRESIDENT OF BORDEN WITH RESPONSIBILITY FOR ITS SNACKS AND INTERNATIONAL CONSUMER PRODUCTS UNIT DURING MR. WAYDO'S TENURE BORDEN MADE A NUMBER OF ACQUISITIONS THAT LATER TURNED SOUR MOST NOTABLY ITS NINETEEN EIGHTY SEVEN PURCHASE OF LAURA SCUDDER POTATO CHIPS FOR NEARLY ONE HUNDRED MILLION DOLLARS MAJOR UNION PROBLEMS PROMPTED BORDEN TO CLOSE ALL OF LAURA SCUDDER'S CALIFORNIA PLANTS A YEAR AFTER THE PURCHASE BORDEN BEGAN USING A PLANT IN SALT LAKE CITY ONLY TO INCUR HIGH COSTS AND QUALITY PROBLEMS LAST MAY BORDEN SOLD LAURA SCUDDER FOR LESS THAN TWENTY MILLION DOLLARS NOW IT IS TRYING TO SELL ITS ENTIRE SNACK FOOD BUSINESS BORDEN REPORTED A FOURTH QUARTER LOSS OF SIX HUNDRED THIRTY FIVE POINT NINE MILLION DOLLARS OR FOUR DOLLARS AND FIFTY CENTS A SHARE INCLUDING A SIX HUNDRED THIRTY TWO MILLION DOLLAR RESTRUCTURING CHARGE IN THE YEAR EARLIER QUARTER IT HAD A PROFIT OF TWENTY EIGHT POINT FOUR MILLION DOLLARS OR TWENTY CENTS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BORDEN STOCK ROSE TWELVE POINT FIVE CENTS TO FIFTEEN DOLLARS A SHARE YESTERDAY BENIN WAS A KINGDOM IN WEST AFRICA THAT FLOURISHED AND PRODUCED EXTRAORDINARY ART FROM THE FOURTEENTH TO THE NINETEENTH CENTURIES THIS EXHIBITION OF MORE THAN ONE HUNDRED OBJECTS ON LOAN FROM VIENNA'S ETHNOGRAPHIC MUSEUM INCLUDES THE FAMOUS BRONZE SCULPTURES CEREMONIAL OBJECTS AND JEWELRY AND IVORY CARVINGS AMONG THEM FOUR ELABORATELY CARVED SEVEN FOOT TUSKS AFTER LEAVING HERE IT TRAVELS TO CLEVELAND BALTIMORE AND SEATTLE MUSEUM OF FINE ARTS HOUSTON ONE THOUSAND ONE BISSONNET THROUGH APRIL THIRD THIS RETROSPECTIVE FEATURES SOME FORTY PAINTINGS DRAWINGS AND PRINTS FROM INTERNATIONAL PUBLIC AND PRIVATE COLLECTIONS FOCUSING ON THE ARTIST'S FASCINATION WITH AND TRANSFORMATION OF THE HUMAN FACE PARTICULARLY WEEPING WOMEN LATER VENUES ARE THE METROPOLITAN MUSEUM OF ART IN NEW YORK AND THE ART INSTITUTE OF CHICAGO LOS ANGELES COUNTY MUSEUM OF ART FIVE THOUSAND NINE HUNDRED FIVE WILSHIRE BOULEVARD THROUGH MAY FIRST TWO HUNDRED THIRTEEN EIGHT HUNDRED FIFTY SEVEN TO SIX THOUSAND PAINTINGS SCULPTURES PHOTOGRAPHS AND MIXED MEDIA INSTALLATIONS BY TWENTY FOREIGN BORN ASIAN AMERICAN ARTISTS FOCUSING ON THE IDENTITY CRISIS FACED BY ASIANS LIVING IN THE WEST ONLY ONE ARTIST MASAMI TERAOKA WORKS IN A TRADITIONAL ASIAN ART MEDIUM WOODBLOCK PRINTING WHILE THE OTHERS USE CONTEMPORARY WESTERN MEDIA MORE THAN ONE HUNDRED LANDSCAPES MARINE VIEWS CITYSCAPES PORTRAITS AND GENRE SCENES PAINTED BY SEVENTEEN ARTISTS BETWEEN ONE THOUSAND SEVEN HUNDRED EIGHTY AND ONE THOUSAND EIGHT HUNDRED FIFTY CHRISTOFFER WILHELM ECKERSBERG AND HIS PUPIL CHRISTEN KOBKE ARE THE BEST KNOWN NAMES FROM THIS LITTLE KNOWN BUT HIGH MOMENT IN EUROPEAN ART METROPOLITAN MUSEUM OF ART FIFTH AVENUE AT EIGHTY SECOND STREET THROUGH APRIL TWENTY FOURTH TWO HUNDRED TWELVE EIGHT HUNDRED SEVENTY NINE TO FIVE THOUSAND FIVE HUNDRED HAROLYN BLACKWELL TAKES OVER THE ROLE OF MARIA FROM KATHLEEN BATTLE IN THE REVIVAL OF QUOTE LA FILLE DU REGIMENT QUOTE MS. BATTLE WAS DISMISSED BY THE MET FOR UNPROFESSIONAL ACTIONS DURING REHEARSALS FRANK LOPARDO SINGS TONIO WITH ROSALIND ELIAS AS THE MARQUISE OF BERKENFIELD EDOARDO MULLER CONDUCTS BRUCE DONNELL DIRECTS METROPOLITAN OPERA BROADWAY AT SIXTY SIXTH STREET FEBRUARY NINETEENTH TWENTY TWO TWENTY SIX MARCH FIRST SIX TEN TWO HUNDRED TWELVE THREE HUNDRED SIXTY TWO TO SIX THOUSAND TWO PRODUCTIONS CLOSE THE SEASON HERE ONE IS VERDI'S UN BALLO IN MASCHERA IN A PRODUCTION BY ZACK BROWN TENOR RICHARD MARGISON SINGS THE KING FATALLY ATTRACTED TO ANOTHER MAN'S WIFE WITH SOPRANO LISA GASTEEN AS THE LOVE INTEREST AMELIA THE OTHER IS MING CHO LEE'S PRODUCTION OF PUCCINI'S MADAMA BUTTERFLY WITH CHINESE SOPRANO YAN YAN WANG AS THE GLORIOUS GEISHA AND VLADIMIR GRISHKO AS HER LIEUTENANT PINKERTON THIS LARGE AND COMPREHENSIVE EXHIBIT ABOUT THE PREDATORS OF THE DEEP FEATURES INTERACTIVE DISPLAYS FOSSIL MODELS AND LIVE SPECIMENS AIMED TO DISPEL MISCONCEPTIONS ABOUT ONE OF NATURE'S LEAST ENDEARING BUT MOST ENDURING CREATURES AMERICAN MUSEUM OF NATURAL HISTORY CENTRAL PARK WEST AT SEVENTY NINTH STREET THROUGH MAY FIRST TWO HUNDRED TWELVE SEVEN HUNDRED SIXTY NINE TO FIVE THOUSAND EIGHT HUNDRED AUTHENTIC DUTCH GARDENS WILL BE THE FOCUS OF THIS EVENT BILLED AS THE FIRST INTERNATIONAL FLOWER AND GARDEN SHOW IN THE U. S. ABOUT FIFTY BONSAI TREES ARE BEING FLOWN IN FROM CHINA AS A SPECIAL EXHIBIT THE AGING UNIROYAL GOODRICH TIRE COMPANY PLANT HERE HAS BEEN RUN BY UNION CONTRACT FOR MORE THAN THIRTY YEARS RULES HAVE DICTATED WHO MAY PICK UP WHICH WRENCH EMPLOYEES WHO COMPLETED WORK QUOTAS IN LESS THAN EIGHT HOURS HAVE BEEN ALLOWED TO CHAT OR READ THROUGH THE END OF SHIFTS BUT NOT FOR MUCH LONGER GROUPE MICHELIN BOUGHT UNIROYAL GOODRICH IN NINETEEN NINETY AND NOW THE BIG QUIRKY FRENCH COMPANY IS DEMANDING CHANGE FIERCE UNION RESISTANCE CRUMBLED UNDER MICHELIN THREATS TO CLOSE THE PLANT ON SATURDAY BY A VOTE OF ONE THOUSAND SEVEN TO FOUR HUNDRED ELEVEN FORT WAYNE EMPLOYEES CHOSE TO ACCEPT MICHELIN'S DEMANDS DRASTICALLY ALTERING THE WAY PEOPLE MAKE TIRES HERE IT WAS THE LAST IN A SERIES OF VICTORIES FOR MICHELIN EMPLOYEES AT UNIROYAL GOODRICH'S OTHER PLANTS IN CANADA OKLAHOMA AND ALABAMA ALREADY HAD BOWED QUOTE WE ARE CALLING INTO QUESTION EVERYTHING THE UNION HAS BUILT BRICK BY BRICK OVER THE PAST THIRTY YEARS SENIORITY THE WRITTEN CONTRACT THE GRIEVANCE PROCEDURE QUOTE SAYS STEVEN NAIL A MICHELIN LABOR LAWYER MICHELIN WHICH BECAME THE WORLD'S BIGGEST TIRE MAKER WHEN IT ACQUIRED UNIROYAL GOODRICH PLANNED TO TAKE YEARS TRANSFORMING THE TIRED U. S. COMPANY IN NINETEEN NINETY TWO MICHELIN POSTED WORLD WIDE REVENUE OF SIXTY SIX POINT EIGHT BILLION FRENCH FRANCS OR ELEVEN POINT TWO THREE BILLION DOLLARS DOWN ONE POINT TWO PERCENT FROM THE PREVIOUS YEAR BUT WITH STORMS LASHING THE INDUSTRY AROUND THE WORLD MICHELIN DECIDED A YEAR AGO THAT IT HAD TO SPEED UP THE CHANGES FEELINGS HAVE RUN HIGH IN FORT WAYNE PEOPLE ON OPPOSITE SIDES OF THE ISSUE BOTH UNION STALWARTS AND UNION DISSIDENTS WHO WANTED TO APPROVE MICHELIN'S DEMANDS ACCUSE ONE ANOTHER OF MAKING DEATH THREATS DISSIDENT PHILLIP GEUSZ SAYS FRIENDS WARNED HIM A FEW WEEKS AGO THAT A MAN WITH A DEER RIFLE WAS STALKING HIM ONE BIG GUY CAME UP AT WORK AND SAID HE'D PRAY FOR ME IN CHURCH MR. GEUSZ RECALLS THE CLASH GROWS PARTLY FROM THE SINGLEMINDEDNESS OF A COMPANY THAT INVENTED THE RADIAL TIRE AND HAS BEEN RUN BY THE SAME FAMILY FOR MORE THAN ONE HUNDRED YEARS ITS CHAIRMAN IS FRANCOIS MICHELIN WHO IS IN HIS MID SIXTIES HIS SON EDOUARD IN HIS EARLY THIRTIES IS BEING TRAINED TO SUCCEED HIM THE COMPANY'S EXECUTIVES FRAME THE ELDER MR. MICHELIN'S SAYINGS AND HANG THEM ON THEIR WALLS THEY BELIEVE TRUE MICHELIN PEOPLE SHARE PROFOUND VALUES INVOLVING DUTIES TO ONE ANOTHER AND TO THE CUSTOMER THAT OUTSIDERS DON'T UNDERSTAND UNIROYAL GOODRICH SUFFERED BECAUSE IT DIDN'T HAVE SUCH VALUES THEY BELIEVE THEY ARE DETERMINED TO LEAD IT ON A CONVERSION THEY WANT TO RUN THIS PLACE THE WAY THEY RUN THEIR NONUNION MICHELIN BRAND PLANTS IN SOUTH CAROLINA EXCLAIMS RAY WISEMAN WHO HEADS THE FORT WAYNE PLANT'S UNION LOCAL SEVEN HUNDRED FIFTEEN OF THE UNITED RUBBER CORK LINOLEUM AND PLASTIC WORKERS OF AMERICA THAT SAYS MICHELIN IS PRECISELY RIGHT THE INDUSTRY IS IN CRISIS FUELED BY ITS OWN TECHNOLOGICAL ADVANCES A GOOD TIRE USED TO WEAR OUT AFTER THIRTY THOUSAND MILES MICHELIN TODAY GUARANTEES ITS BEST FOR EIGHTY THOUSAND WITH SALES GROWTH WEAK ACROSS THE INDUSTRY SOME ANALYSTS FEAR FACTORY CLOSURES COULD BECOME A PLAGUE TIRE MAKERS IN THE U. S. WERE SLOW TO ADAPT AND BRANDS INCLUDING FIRESTONE UNIROYAL AND GOODRICH WERE ACQUIRED BY FOREIGN COMPANIES MEANWHILE MICHELIN TRYING TO AVOID LAYOFFS SANK INTO WORLD WIDE LOSSES AND RESTRUCTURED REPEATEDLY WE FELT WE HAD TO MOVE FASTER TO TRANSFORM UNIROYAL GOODRICH SAYS CARLOS GHOSN HEAD OF MICHELIN'S U. S. OPERATIONS ALL THE FOREIGN COMPANIES THAT MADE BIG U. S. ACQUISITIONS ARE PUSHING NOW FOR NEW WORK RULES BRIDGESTONE SLASH FIRESTONE INCORPORATED FORMED AFTER JAPAN'S BRIDGESTONE CORPORATION BOUGHT FIRESTONE TIRE AND RUBBER COMPANY IN NINETEEN EIGHTY EIGHT PLANS TO DEMAND CONCESSIONS IN TALKS WITH ITS UNIONS THIS SPRING AILING GENERAL TIRE INCORPORATED OWNED BY GERMANY'S CONTINENTAL A. G. RECENTLY FORCED WAGE AND WORK RULE CONCESSIONS AT A LOW PRODUCTIVITY PLANT IN KENTUCKY MICHELIN'S FIGHT AT UNIROYAL GOODRICH HAS BEEN PARTICULARLY HARSH A STRUGGLE OVER WHO MANAGES THE COMPANY SAYS MICHELIN'S MR. NAIL MOST GALLING TO EMPLOYEES MICHELIN INSISTS THAT ALL TIRE BUILDERS REGARDLESS OF SENIORITY ROTATE SHIFTS SOMETIMES WORKING DAYS SOMETIMES NIGHTS SOMETIMES WEEKENDS MICHELIN BELIEVES THAT MINGLING JUNIOR AND SENIOR EMPLOYEES ON ALL SHIFTS LEADS TO MORE CONSISTENT QUALITY AND BETTER SAFETY UNION MEMBERS SAY THE CONSTANTLY CHANGING WORK HOURS CAUSE SLEEP PROBLEMS ALIENATION FROM FAMILIES AND EVEN ALCOHOL AND DRUG ABUSE MICHELIN WANTS TO INVEST HEAVILY IN NEW PRODUCTION SYSTEMS WHICH IT SAYS REQUIRES FLEXIBLE COOPERATIVE EMPLOYEES QUOTE NO COMPANY IS GOING TO PUT IN EXPENSIVE NEW EQUIPMENT IF IT HAS AN OVERALL WORK FORCE WHOSE MIDDLE NAME IS IT'S NOT MY JOB QUOTE SAYS FORT WAYNE PLANT MANAGER CHARLES BIANCO FOR MICHELIN STALWARTS IT ALSO IS A MORAL QUESTION FACTORIES WORK BETTER THEY BELIEVE IF EMPLOYEES SHARE HARDSHIP BY ROTATING SHIFTS YOU NEVER GET TO SEE YOUR KIDS WHEN YOU'RE ON THE SECOND SHIFT SAYS WILMA WADDELL WHO BUILDS TIRES AND ROTATES SHIFTS AT A NONUNION MICHELIN BRAND PLANT IN SOUTH CAROLINA BUT WHEN MY SON WAS KILLED IN AN ACCIDENT FOURTEEN YEARS AGO MICHELIN LET ME STAY OUT AS LONG AS I NEEDED MICHELIN TAKES CARE OF ITS OWN UNIROYAL GOODRICH'S UNION CALLS THAT PATERNALISM ANTI FRENCH SENTIMENT ABOUNDS THE RUBBER WORKERS' UNION HAS LAUNCHED AN A. F. L. C. I. O. BACKED CAMPAIGN TO BOYCOTT ALL MICHELIN BRAND ALTHOUGH NOT UNIROYAL OR GOODRICH PRODUCTS SAYING MICHELIN IS INFLEXIBLE AND HAS A SUPERIORITY COMPLEX LYNN LOUDEN A FORTY TWO YEAR OLD FORT WAYNE TIRE BUILDER SAYS HE THINKS THAT MICHELIN NEXT WILL START DEMANDING CUTS IN WAGES AND HEALTH BENEFITS I REALLY FEEL THEY'RE GOING TO KEEP COMING AT US AGAIN AND AGAIN AND THEY'LL TRY TO BEAT US DOWN TO A TEN DOLLAR OR ELEVEN DOLLAR AN HOUR JOB FROM A CURRENT HOURLY WAGE OF NEARLY EIGHTEEN DOLLARS HE SAYS MICHELIN OFFICIALS INSIST THEY HAVE NO DEVIOUS ANTIEMPLOYEE PLANS BUT THEY ACKNOWLEDGE THAT THEIR BATTLE TO CHANGE UNIROYAL GOODRICH HAS ONLY BEGUN AND WHILE THE UNION HAS BEEN BADLY SPLIT UNION LEADERS INSIST THEY WON'T LIE DOWN AND GIVE MICHELIN A FREE HAND MR. WISEMAN THE FORT WAYNE LOCAL'S PRESIDENT WIELDS A CHARISMA HONED OVER TWENTY YEARS IN POWER FOR MONTHS HE REFUSED EVEN TO LET HIS MEMBERS VOTE ON PROPOSED WORK RULE CHANGES SATURDAY'S VOTE WAS FORCED BY NATIONAL UNION LEADERSHIP OVERRULING MR. WISEMAN WHO WAS DEMANDING CONTINUED NEGOTIATIONS TO THE END ASKED WHETHER MICHELIN IS BEGINNING TO THINK THE ACQUISITION MAY HAVE BEEN AN EXPENSIVE ERROR MR. GHOSN MICHELIN'S CHIEF OF U. S. OPERATIONS SAYS THE JURY IS STILL OUT YOU CAN'T JUDGE THESE THINGS IN THREE OR FOUR YEARS' TIME HE SAYS QUOTE IT TAKES LONGER THAN THAT YOU HAVE TO HAVE PATIENCE QUOTE NUMBER OF PRIVATE VEHICLES ALLOWED IN THE COMMERCIAL DISTRICTS OF LILLEHAMMER ZERO NUMBER OF MILES CONSIDERED BY NORWEGIAN OFFICIALS TO BE WALKING DISTANCE BETWEEN OLYMPIC VENUES THIRTY FIVE NUMBER OF TICKET AGENTS IN NORWAY ONE CARTAN TOURS COMPAQ COMPUTER CORPORATION SAID IT IS DEVELOPING A PROGRAM TO MARKET ITS PERSONAL COMPUTERS TO EDUCATIONAL INSTITUTIONS INCLUDING ELEMENTARY SCHOOLS JUNIOR HIGHS HIGH SCHOOLS AND UNIVERSITIES THE MOVE IS ANOTHER IN COMPAQ'S CONTINUING EFFORTS TO EXPAND ITS SALES INTO NEW MARKETS THE HOUSTON COMPUTER MAKER QUOTE HAS NEVER FOCUSED ON EDUCATION OR DEVELOPED AN ORGANIZATION TO HANDLE IT QUOTE SAID A SPOKESMAN FOR COMPAQ THE TIME IS RIGHT FOR THE COMPAQ EXPANSION HE SAID BECAUSE THERE IS AN INCREASE IN THE LEVEL OF SOPHISTICATION OF COMPUTER USE AND A GROWING NEED FOR NETWORKING CAPABILITIES IN SCHOOLS COMPAQ WILL ESTABLISH COMPUTER DISTRIBUTION CHANNELS SOFTWARE PARTNERSHIPS AND MARKETING PROGRAMS TO SELL ITS PORTABLE DESKTOP AND SERVER OR NETWORKING PERSONAL COMPUTERS THE COMPANY SAID IT ALSO SET UP A NEW LEASING PROGRAM DESIGNED FOR SCHOOLS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMPAQ SHARES CLOSED AT NINETY ONE POINT SIX TWO FIVE DOLLARS UP EIGHTY SEVEN POINT FIVE CENTS A BORDEN INCORPORATED SUBSIDIARY SAID IT PLANS TO BUILD A FOREST PRODUCTS RESINS PLANT IN HOPE ARKANSAS THE ADHESIVES AND RESINS NORTH AMERICA UNIT OF BORDEN'S PACKAGING AND INDUSTRIAL PRODUCTS DIVISION SAID THE NEW FACILITY WILL SERVE THE GROWING FOREST PRODUCTS BUSINESS IN THE REGION BORDEN IS A LEADING SUPPLIER OF RESINS USED TO MAKE PLYWOOD AND PARTICLEBOARD NEXT TIME YOU SEE A MUTUAL FUND WITH LOUSY PERFORMANCE DON'T BLAME THE PERSON WHO MANAGES IT CHECK OUT THE FUND'S ANNUAL EXPENSES INSTEAD STEADMAN AMERICAN INDUSTRY FUND FOR INSTANCE RANKED AS THE WORST PERFORMING STOCK FUND FOR THE FIVE YEARS ENDED DECEMBER NINETEEN NINETY THREE LOSING TWENTY FIVE PERCENT OF SHAREHOLDERS' MONEY IN A PERIOD WHEN THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SOARED NINETY SEVEN POINT ONE PERCENT BUT THE FUND'S STOCK PICKING WAS ONLY PARTLY RESPONSIBLE FOR THE ROTTEN RESULTS IF YOU LOOK AT THE PERFORMANCE OF STEADMAN AMERICAN INDUSTRY BEFORE THE DEDUCTION OF ANNUAL MUTUAL FUND EXPENSES THE FUND ACTUALLY GAINED FORTY FIVE POINT ONE PERCENT ACCORDING TO MORNINGSTAR INCORPORATED A CHICAGO FUND RESEARCH FIRM INSTEAD THE BIGGEST REASON FOR STEADMAN'S POOR PERFORMANCE HAS BEEN THE FUND'S OUTRAGEOUSLY HIGH ANNUAL EXPENSES THOSE EXPENSES HAVE CLAIMED MORE THAN TWELVE PERCENT OF FUND ASSETS IN EACH OF THE PAST FOUR YEARS SAYS FUND RESEARCHER LIPPER ANALYTICAL SERVICES INVESTORS ARE OFTEN ONLY DIMLY AWARE OF THE IMPACT OF FUND EXPENSES THESE EXPENSES ARE GRADUALLY DEDUCTED FROM A FUND'S SHARE PRICE THROUGHOUT THE YEAR AS A RESULT MUTUAL FUND PERFORMANCE NUMBERS INCLUDING THE ONES REPORTED IN THE BACK OF THIS NEWSPAPER AUTOMATICALLY REFLECT THE IMPACT OF ANNUAL FUND EXPENSES THE PERFORMANCE NUMBERS DON'T REFLECT LOADS OR SALES CHARGES HOWEVER ANNUAL FUND EXPENSES ARE DISCLOSED IN A FUND DOCUMENT KNOWN AS THE PROSPECTUS EXPRESSED AS A PERCENT OF FUND ASSETS ON AVERAGE DIVERSIFIED U. S. STOCK FUNDS LEVY EXPENSES OF ONE POINT TWO THREE PERCENT OR ONE DOLLAR AND TWENTY THREE CENTS FOR EVERY ONE HUNDRED DOLLARS UNDER MANAGEMENT THAT MEANS THAT THE TYPICAL STOCK FUND HAS TO RETURN AT LEAST ONE POINT TWO THREE PERCENT EACH YEAR JUST FOR SHAREHOLDERS TO BREAK EVEN RETURN MEANS THE CHANGE IN THE FUND'S SHARE PRICE PLUS DIVIDENDS STEADMAN FUND GROUP WHICH MANAGES THE AMERICAN INDUSTRY FUND BLAMES ITS HIGH ANNUAL EXPENSES ON LEGAL BILLS INCURRED IN A LENGTHY BATTLE WITH THE SECURITIES AND EXCHANGE COMMISSION OVER ALLEGATIONS THAT THE WASHINGTON D. C. FUND GROUP MISPRICED ITS MUTUAL FUNDS STEADMAN WON THE CASE ON APPEAL IN NINETEEN NINETY TWO IT SAYS EXPENSES HAVE STARTED TO COME DOWN BUT MAX KATCHER STEADMAN'S TREASURER CONCEDES THAT EVEN WITHOUT THE HIGH EXPENSES ITS FUND PERFORMANCE HAS LEFT SOMETHING TO BE DESIRED QUOTE WE WON'T QUARREL WITH THAT QUOTE MR. KATCHER SAYS THOSE ARE THE FACTS HIGH EXPENSES USED TO BE A BIG PROBLEM AT AMERICAN HERITAGE FUND WHICH ONCE RANKED AS ONE OF THE FUND INDUSTRY'S MOST NOTORIOUS LOSERS BUT MARKET STRATEGIST HEIKO THIEME TOOK OVER THE FUND IN NINETEEN NINETY AND HAS SINCE TURNED IN STRONG GAINS DESPITE A ROUGH FIRST YEAR AND RECENT WEAK RESULTS THAT HAS BOLSTERED THE FUND'S FIVE YEAR RECORD SO THAT IT NOW RANKS AS THE ONE HUNDRED EIGHTEENTH BEST PERFORMING DIVERSIFIED U. S. STOCK FUND OVER THE PAST FIVE YEARS WITH A TOTAL RETURN OF ONE HUNDRED TWENTY TWO POINT FOUR PERCENT BUT THE FUND'S PERFORMANCE WOULD HAVE BEEN EVEN BETTER IF IT WASN'T FOR THE FUND'S HISTORICALLY HIGH ANNUAL EXPENSES WHILE THE FUND'S ANNUAL EXPENSES CURRENTLY ARE RUNNING AT LESS THAN TWO PERCENT THEY AMOUNTED TO MORE THAN THIRTEEN PERCENT OF ASSETS AT THE START OF THE FIVE YEAR PERIOD IF THOSE EXPENSES ARE BACKED OUT OF AMERICAN HERITAGE'S RESULTS MORNINGSTAR CALCULATES THAT THE FUND WOULD HAVE RETURNED TWO HUNDRED TWELVE POINT SEVEN PERCENT DURING THE PAST FIVE YEARS MAKING IT THE INDUSTRY'S NINETEENTH BEST PERFORMER IF A FUND HAS AN EXPENSE RATIO ABOVE TWO POINT FIVE PERCENT I WOULD VIEW THAT AS A WARNING SIGNAL SAYS MR. THIEME BUT JUST FOCUSING ON EXPENSES IS A MISTAKE IT'S THE RETURN OF THE FUND THAT SHOULD BE DECISIVE WHEN SELECTING A MUTUAL FUND WHILE SOME FUNDS ARE IMPAIRED BY THEIR HIGH EXPENSES OTHERS COUNT THRIFTINESS AS THEIR CHIEF VIRTUE VANGUARD EXTENDED MARKET PORTFOLIO FOR INSTANCE IS AN INDEX FUND THAT SIMPLY BUYS AND HOLDS THE STOCKS IN THE WILSHIRE FOUR THOUSAND FIVE HUNDRED AN INDEX OF SMALLER COMPANY STOCKS MORNINGSTAR FIGURES THAT THE VANGUARD FUND RANKS AS THE TWO HUNDRED SIXTY SECOND BEST FUND OVER THE PAST FIVE YEARS OUT OF A TOTAL OF SIX HUNDRED THREE DIVERSIFIED U. S. STOCK FUNDS THAT WERE AROUND FOR THE ENTIRE PERIOD BUT THE FUND'S BETTER THAN AVERAGE RESULT HAS COME ABOUT BECAUSE ITS EXPENSES CURRENTLY ZERO POINT ONE NINE PERCENT ARE SO MUCH LOWER THAN THOSE OF ITS COMPETITORS IF YOU IGNORE EXPENSES THE FUND'S RANKING DROPS TO A BELOW AVERAGE THREE HUNDRED FIFTY SECOND FOR MANY MUTUAL FUNDS EXPENSES HAVE MEANT THE DIFFERENCE BETWEEN BEATING AND LAGGING BEHIND THE MARKET OVER THE PAST FIVE YEARS BEFORE EXPENSES FUNDS SOARED AN AVERAGE ONE HUNDRED EIGHT POINT ONE PERCENT SINCE YEAR END NINETEEN EIGHTY EIGHT COMPARED WITH NINETY SEVEN POINT ONE PERCENT FOR THE S. AND P. FIVE HUNDRED BUT ONCE EXPENSES ARE SUBTRACTED THE FUNDS RETURNED A MARKET LAGGING NINETY FIVE POINT THREE PERCENT IT SHOWS HOW TOUGH IT IS TO BEAT THE MARKET SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER PUBLISHED BY MORNINGSTAR QUOTE EXPENSES HAVE CLEARLY MADE A BIG DIFFERENCE QUOTE EXPENSES CAN ALSO TAKE A BIG CHUNK OUT OF SHORT TERM PERFORMANCE MORNINGSTAR FIGURES THAT THE AVERAGE DIVERSIFIED U. S. STOCK FUND RETURNED TWELVE POINT SIX PERCENT LAST YEAR COMPARED WITH TEN POINT ONE PERCENT FOR THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX BUT IF YOU BACK OUT EXPENSES FUND RETURNS JUMP TO ALMOST FOURTEEN PERCENT ELIMINATING EXPENSES DOESN'T DO MUCH FOR VANGUARD GROUP THE COUNTRY'S SECOND LARGEST FUND COMPLEX WHICH PRIDES ITSELF ON ITS ROCK BOTTOM EXPENSES REMOVING EXPENSES BOLSTERS VANGUARD'S NINETEEN NINETY THREE STOCKFUND PERFORMANCE ONLY SLIGHTLY TO ALMOST THIRTEEN PERCENT FROM TWELVE POINT SIX PERCENT BUT THE EFFECT ON THE STEADMAN FUNDS IS ENORMOUS THERE ARE FOUR STEADMAN FUNDS THREE OF WHICH ARE CLASSIFIED AS DIVERSIFIED U. S. STOCK FUNDS BY MORNINGSTAR THESE THREE FUNDS RETURNED AN AVERAGE OF SEVEN POINT SIX PERCENT LAST YEAR BUT IF YOU BACK OUT EXPENSES STEADMAN'S AVERAGE PERFORMANCE SOARS TO SEVENTEEN POINT FOUR PERCENT ELIMINATING EXPENSES HAS AN ESPECIALLY SIGNIFICANT EFFECT ON THE PERFORMANCE OF STEADMAN AMERICAN INDUSTRY WHICH RETURNED NINE POINT ONE PERCENT LAST YEAR MAKING IT THE SIX HUNDRED THIRTY THIRD BEST PERFORMING FUND OUT OF A TOTAL OF NINE HUNDRED FIFTY THREE THAT WERE AROUND FOR THE TWELVE MONTH PERIOD IGNORE EXPENSES AND STEADMAN AMERICAN INDUSTRY BECOMES THE EIGHTY EIGHTH BEST PERFORMING FUND WITH A RETURN OF TWENTY THREE POINT NINE PERCENT IN QUOTE ON LOOKING INTO THE ABYSS UNTIMELY THOUGHTS ON CULTURE AND SOCIETY QUOTE KNOPF TWO HUNDRED TWENTY FOUR PAGES TWENTY FOUR DOLLARS THE DISTINGUISHED HISTORIAN GERTRUDE HIMMELFARB HAS GIVEN US A KIND OF FEVER CHART OF CONTEMPORARY INTELLECTUAL FASHION THE WORD ABYSS SUGGESTS THAT THE DIAGNOSIS WILL NOT BE ENCOURAGING INDEED MANY OF THE PHENOMENA THAT MS. HIMMELFARB DISCUSSES IN THESE SEVEN ESSAYS ALL OF WHICH WERE WRITTEN IN THE PAST THREE YEARS ARE THE OPPOSITE OF SALUBRIOUS THERE ARE FIRST OF ALL SUCH DIVERSE INTELLECTUAL MALADIES AS DECONSTRUCTION THE NEW HISTORICISM AND NIHILISTIC RELATIVISM ALL THE ANEMIC BUGBEARS THAT MAKE THE UNIVERSITY SUCH A CHEERFUL PLACE TODAY THEN THERE ARE VARIOUS HISTORICAL CATASTROPHES THE PERNICIOUS AMALGAMS OF NATIONALISM AND FUNDAMENTALISM FOR EXAMPLE WHICH ARE PROLIFERATING ANEW ABOVE ALL THERE IS THE HOLOCAUST THE SHADOW OF WHICH IN ONE WAY OR ANOTHER DARKENS ALL THESE ESSAYS A GRIM REMINDER THAT VERY BAD IDEAS CAN IN FACT HAVE VERY BAD CONSEQUENCES YET MS. HIMMELFARB'S REPORTS FROM THE ABYSS ARE MORE THAN GLOOMY BULLETINS HER ESSAYS ARE ALSO UNTIMELY THAT IS TO SAY UNFASHIONABLE LIKE NIETZSCHE'S UNTIMELY MEDITATIONS THEY CHALLENGE PREVAILING INTELLECTUAL ORTHODOXY IF MANY PROMINENT CRITICS TODAY FLIRT WITH NIHILISM MS. HIMMELFARB ANATOMIZES IT IN ORDER TO ATTACK IT IN HER INTRODUCTION SHE WRITES THAT HER BOOK IS DEDICATED TO THE PROPOSITION THAT THERE ARE SUCH THINGS AS TRUTH AND REALITY AND THAT THERE IS A CONNECTION BETWEEN THEM AS THERE IS ALSO A CONNECTION BETWEEN THE AESTHETIC SENSIBILITY AND THE MORAL IMAGINATION BETWEEN CULTURE AND SOCIETY THE AMAZING THING ABOUT THESE SENSIBLE STATEMENTS IS THAT YOU HAVE TO LOOK LONG AND HARD TO FIND PEOPLE TO DEFEND THEM NOT ONLY IN THE UNIVERSITY BUT ALSO IN CULTURAL LIFE GENERALLY WHEN IT COMES TO THE IDEA OF TRUTH THE PREVAILING WISDOM IS SUMMED UP BY THE INFLUENTIAL PHILOSOPHER RICHARD RORTY WHO SPEAKS WITH CONTEMPT OF METAPHYSICAL PRIGS I. E. THOSE WHO STILL BELIEVE THAT PHILOSOPHY HAS SOMETHING TO DO WITH SEEKING THE TRUTH PRESUMABLY MR. RORTY'S STUDENTS ARE ALL THOROUGHLY DISABUSED OF ANY SUCH QUOTE PRIGGISHNESS QUOTE MS. HIMMELFARB IS IMPATIENT WITH THIS BLASE RELATIVISM PERHAPS IT IS NOT GIVEN TO US TO POSSESS TRUTH WITH UTTER CLARITY BUT IT DOES NOT FOLLOW AS THE RORTARIANS INSIST THAT WE ARE COMPLETELY CUT OFF FROM THE TRUTH TRUE IT IS OFTEN DIFFICULT TO MAKE JUDGMENTS ABOUT HISTORICAL EVENTS OUR KNOWLEDGE IS FRAGMENTARY THE EVENTS ARE DAZZLINGLY COMPLEX BUT THE FASHIONABLE HISTORIANS WHO CLAIM THAT CONDEMNING HITLER OR STALIN IS AN ACT OF MORAL IMPERIALISM AND WHO PRETEND THAT THERE IS NO QUALITATIVE DIFFERENCE BETWEEN DEMOCRACY AND TOTALITARIANISM ARE MORE THAN OBTUSE THEY ARE CULPABLE ONE OF MS. HIMMELFARB'S GOALS IN THESE ESSAYS IS TO REVITALIZE THE IDEA OF GREATNESS HISTORICAL GREATNESS LITERARY GREATNESS EVEN MORAL GREATNESS MS. HIMMELFARB QUOTES MADAME DE SEVIGNE'S FAMOUS REMARK THAT NO MAN IS A HERO TO HIS VALET TODAY SHE SUGGESTS WE LIVE WITH A VALET'S VIEW OF THE WORLD EVERYTHING IS CUT DOWN TO SIZE EVEN BELOW SIZE IT CAN NO LONGER BE TAKEN FOR GRANTED THAT MILTON DESERVES TO BE MORE PRIVILEGED THAN MICKEY MOUSE THAT HIGH CULTURE IS HIGHER THAN POPULAR CULTURE AND THAT SOME EVENTS IN HISTORY ARE MORE MOMENTOUS THAN OTHERS ATTACKS ON GREATNESS SAY MORE ABOUT US THAN THE THINGS THEY WOULD DIMINISH AS HEGEL OBSERVED IF IT HAPPENS THAT NO MAN IS A HERO TO HIS VALET THIS IS NOT BECAUSE THE MAN IS NOT A HERO BUT BECAUSE THE VALET IS A VALET AS IS OFTEN THE CASE MANY OF OUR CHARACTERISTIC MALADIES ARE PARTLY A FUNCTION OF OUR VIRTUES THUS THE SUSPICION OF GREATNESS IS THE OTHER SIDE THE EXAGGERATION OR DISTORTION OF OUR LAUDABLE INSISTENCE ON EQUALITY AND DEMOCRACY MUST DEMOCRACY ENTAIL MEDIOCRITY OR TAKE THE IDEAL OF FREE SPEECH ONE OF THE BEDROCKS OF A DEMOCRATIC SOCIETY WE WANT FREE SPEECH DOES THAT MEAN WE MUST ALSO ACCEPT THE FREE CIRCULATION OF PORNOGRAPHY THESE ARE SOME OF THE CONUNDRUMS THAT LIBERALISM GENERATES FOR ITSELF IN OUR SOCIETY IT MAKES FOR SOME STRANGE SITUATIONS AS MS. HIMMELFARB OBSERVES WE LIVE IN A SOCIETY WHERE THE IDEAL OF FREE SPEECH AND THE INSISTENCE ON THE SEPARATION OF CHURCH AND STATE LEAD TO THE CURIOUS RESULT THAT THE PHOTOGRAPH OF A CRUCIFIX IMMERSED IN URINE CAN BE EXHIBITED IN A PUBLIC SCHOOL BUT A CRUCIFIX NOT IMMERSED IN URINE CANNOT BE EXHIBITED IN HER INTRODUCTION MS. HIMMELFARB NOTES THAT THE CRITICAL INSPIRATION FOR THESE ESSAYS WAS LIONEL TRILLING THE GREAT LITERARY CRITIC AND SOCIAL COMMENTATOR NOT ONLY HER TITLE BUT ALSO MANY PHRASES EXAMPLES AND ARGUMENTS ARE DRAWN FROM TRILLING'S WORK IT IS ABOVE ALL TRILLING'S MANNER A MANNER CHARGED WITH MORAL SERIOUSNESS BUT UNENCUMBERED BY PEDANTRY OR OBSCURANTISM THAT APPEALS TO HER UNLIKE MANY CRITICS THEN OR NOW TRILLING WAS ABLE TO RESIST THE INSIDIOUS IDEOLOGICAL AND POLITICAL FASHIONS OF HIS TIME WITHOUT THE COARSENING OF MIND THAT OFTEN COMES WITH DOING BATTLE AND ALSO WITHOUT THE TIMIDITY AND EQUIVOCATION THAT RETREATS FROM BATTLE IN AN EXCESS OF FASTIDIOUSNESS BOTH ARE NECESSARY INTELLECTUAL INTEGRITY AS WELL AS THE COURAGE TO QUOTE DO BATTLE QUOTE FOR IDEAS AND BOTH ARE RARE WE MUST BE GRATEFUL TO MS. HIMMELFARB FOR REMINDING BOTH ARE STILL POSSIBLE IWERKS ENTERTAINMENT INCORPORATED BURBANK CALIFORNIA SAID IT SIGNED AN AGREEMENT WITH BLOCKBUSTER ENTERTAINMENT CORPORATION TO DESIGN AND BUILD MOTION SIMULATION THEATERS FOR BLOCKBUSTER'S PLANNED CHAIN OF FAMILY ENTERTAINMENT COMPLEXES TERMS WEREN'T DISCLOSED IWERKS WHICH SPECIALIZES IN MAKING SPECIALTY THEATERS AND SIMULATOR RIDES FOR AMUSEMENT VENUES ALSO SAID IT WILL DEVELOP AND PRODUCE A LIBRARY OF FILMS EXCLUSIVELY FOR THE BLOCKBUSTER VENTURE ANNOUNCED LAST YEAR BLOCKBUSTER FORT LAUDERDALE FLORIDA IS A VIDEO RENTAL CHAIN THE SITES AND OPENING DATES FOR THE COMPANY'S FIRST ENTERTAINMENT COMPLEXES HAVEN'T BEEN DISCLOSED IWERKS'S STOCK ROSE TWO DOLLARS AND TWENTY FIVE CENTS OR NINE POINT NINE PERCENT TO CLOSE AT TWENTY FIVE DOLLARS ON THE NASDAQ STOCK MARKET BLOCKBUSTER'S STOCK FELL EIGHTY SEVEN POINT FIVE CENTS TO CLOSE AT TWENTY FOUR POINT EIGHT SEVEN FIVE DOLLARS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BUOYED BY INVESTMENT GAINS CIGNA CORPORATION'S PROFIT SOARED IN THE FOURTH QUARTER THE PHILADELPHIA BASED INSURANCE COMPANY EARNED ONE HUNDRED NINETY FOUR MILLION DOLLARS OR TWO DOLLARS AND SEVENTY CENTS A SHARE COMPARED WITH FIFTY MILLION DOLLARS OR SEVENTY CENTS A SHARE IN THE YEAR BEFORE PERIOD THE LATEST RESULTS INCLUDE CAPITAL GAINS OF ONE HUNDRED TWO MILLION DOLLARS COMPARED WITH NINETEEN MILLION DOLLARS IN THE PRIOR YEAR INDIVIDUAL BUSINESSES POSTED MIXED OPERATING RESULTS IN THE QUARTER THE COMPANY'S GROUP LIFE AND HEALTH INSURANCE BUSINESS EARNED ONE HUNDRED FIFTY FIVE MILLION DOLLARS COMPARED WITH ONE HUNDRED FIFTEEN MILLION DOLLARS A YEAR EARLIER PENSION PROFITS WERE FLAT AT FORTY FOUR MILLION DOLLARS INDIVIDUAL LIFE INSURANCE AND ANNUITY PROFITS ROSE TO THIRTY THREE MILLION DOLLARS FROM TWENTY FOUR MILLION DOLLARS THE PROPERTY AND CASUALTY SEGMENT HAD A ONE HUNDRED TWENTY FOUR MILLION DOLLAR LOSS COMPARED WITH A ONE HUNDRED FIFTEEN MILLION DOLLAR LOSS THE YEAR BEFORE CIGNA SAID IT EXPECTS TO LOSE TWENTY FIVE MILLION DOLLARS ON THE LOS ANGELES EARTHQUAKE IN THE CURRENT QUARTER IN A RARE USE OF THE CONSTITUTIONAL BAN ON STATE LAWS INTERFERING WITH CONTRACTS A FEDERAL COURT STRUCK DOWN A MINNESOTA LAW THAT RETROACTIVELY CHANGED THE TERMS OF A WORKERS' COMPENSATION INSURANCE FUND THE DECISION BY JUDGE JAMES ROSENBAUM IN MINNEAPOLIS IS SIGNIFICANT BECAUSE COURTS RARELY INVOKE THE SO CALLED CONTRACTS CLAUSE OF THE U. S. CONSTITUTION TO INVALIDATE LEGISLATION IF ADOPTED ELSEWHERE THE JUDGE'S REASONING COULD BE USED TO CHALLENGE A WIDE RANGE OF REGULATIONS SUCH AS LAWS CHANGING THE TERMS OF STATE SPONSORED RETIREMENT FUNDS OR ESTABLISHING NEW RIGHTS THAT ALTER EXISTING FRANCHISE AGREEMENTS QUOTE THE MESSAGE OF THIS CASE IS THAT THE GOVERNMENT MUST UPHOLD ITS SIDE OF THE BARGAIN AND THAT YOU CAN'T CHANGE THE CONTRACT AFTER THE FACT FOR SOME POLITICALLY EXPEDIENT PURPOSE QUOTE SAID JAMES SHAFLEY A LAWYER WITH THE MINNEAPOLIS LAW FIRM ROBINS KAPLAN MILLER AND CIRESI WHICH REPRESENTED SOME OF THE PLAINTIFFS IN THE CASE THE CASE AROSE WHEN THE MINNESOTA LEGISLATURE PASSED A LAW CHANGING THE WAY EXCESS FUNDS IN THE WORKERS' COMPENSATION SYSTEM WERE TO BE DISTRIBUTED IN NINETEEN SEVENTY NINE THE STATE BEGAN REQUIRING INSURANCE COMPANIES AND SELF INSURED EMPLOYERS TO CONTRIBUTE MONEY TO A POOL THAT PROVIDES REINSURANCE FOR WORKERS' COMPENSATION CLAIMS SUCH REINSURANCE IS DESIGNED TO PROVIDE EXTRA COVERAGE FOR UNUSUALLY LARGE CLAIMS UNDER THE ORIGINAL TERMS OF THE FUND WHICH THE JUDGE DEFINED AS A CONTRACT INSURERS AND OTHER COMPANIES THAT CONTRIBUTED MONEY WERE ENTITLED TO REFUNDS IF THE POOL ACCUMULATED A SURPLUS AS IT TURNED OUT THE FUND AMASSED A SIZABLE SURPLUS ABOUT FOUR HUNDRED TWO MILLION DOLLARS OVER A PERIOD OF ABOUT THIRTEEN YEARS BUT LAST YEAR HOPING TO REDUCE WORKERS' COMPENSATION COSTS OF EMPLOYERS THE MINNESOTA LEGISLATURE DECIDED TO DISTRIBUTE THE EXCESS MONEY TO EMPLOYERS RATHER THAN INSURANCE COMPANIES THAT DECISION JUDGE ROSENBAUM RULED WAS UNCONSTITUTIONAL BECAUSE IT INTERFERED WITH THE CONTRACTUAL RELATIONSHIP BETWEEN THE STATE AND THE INSURANCE COMPANIES THE MINNESOTA LEGISLATURE HAS ANNIHILATED THESE SETTLED CONTRACTUAL EXPECTATIONS THE JUDGE WROTE IT SIMPLY AWARDS THE WINDFALL TO DIFFERENT LEGISLATIVELY PREFERRED RECIPIENTS BY RELYING ON THE CONTRACTS CLAUSE THE OPINION RESURRECTS A THEORY THAT WAS A STAPLE OF FEDERAL CONSTITUTIONAL LITIGATION BACK IN THE NINETEEN TWENTIES AND THIRTIES BUT IS NOW USED MUCH MORE SPARINGLY SAID JOHN JEFFRIES A PROFESSOR OF CONSTITUTIONAL LAW AT THE UNIVERSITY OF VIRGINIA JOCELYN OLSON A MINNESOTA ASSISTANT ATTORNEY GENERAL SAID STATE OFFICIALS HAVEN'T MADE A DECISION ABOUT WHETHER TO APPEAL AFTER THREE BRIEF DAYS OF DEFENSE TESTIMONY PROSECUTORS IN THE WORLD TRADE CENTER BOMBING TRIAL BEGAN PRESENTING CLOSING ARGUMENTS TO THE JURY ASSISTANT U. S. ATTORNEY HENRY J. DEPIPPO SAID EVIDENCE FROM THE EIGHTEEN WEEK TRIAL CLEARLY SHOWED THE FOUR DEFENDANTS HAD A SINGLE GOAL UNITING ALL OF THEIR ACTIONS TO BOMB SOMETHING IN THE UNITED STATES THE PLOT COMMENCED HE CONTENDED IN THE SUMMER OF NINETEEN NINETY TWO WHEN DEFENDANT AHMAD AJAJ TOOK A COURSE IN WEAPONS AND EXPLOSIVES TRAINING IN THE MIDDLE EAST AND THEN RETURNED TO THE U. S. BEARING A TERRORIST KIT INCLUDING ANTI JEWISH HATE LITERATURE AND BOMB MAKING NOTES IN HIS HANDWRITING THE DEFENDANTS ARE ALL CHARGED WITH CONSPIRACY IN THE FEBRUARY TWENTY SIXTH NINETEEN NINETY THREE BLAST THAT KILLED SIX PEOPLE PROSECUTORS ARE EXPECTED TO CONTINUE THEIR SUMMATION TODAY THE CASE IS EXPECTED TO GO TO THE JURY AS EARLY AS THE END OF THIS WEEK MARGARET A. JACOBS CONTRIBUTED TO THIS ARTICLE ANDRE ROUSSELET CHAIRMAN OF FRANCE'S CANAL PLUS S. A. STEPPED DOWN YESTERDAY AS THE HEAD OF THE PAY T. V. OPERATOR IN A DISAGREEMENT OVER THE RESHUFFLING OF STAKES IN THE GROUP MR. ROUSSELET WHO RESIGNED LATE LAST WEEK FROM THE BOARD OF HAVAS S. A. WILL RECOMMEND TO CANAL PLUS'S BOARD AT A MEETING TOMORROW THAT PIERRE LESCURE SUCCEED HIM AS CHAIRMAN CANAL PLUS SAID FOLLOWING MR. ROUSSELET'S DEPARTURE FROM THE HAVAS BOARD THERE WAS STRONG SPECULATION THAT HE WOULD RESIGN AS CHAIRMAN OF CANAL PLUS MR. ROUSSELET TOOK ISSUE WITH HAVAS'S DECISION TO COMBINE ITS TWENTY THREE POINT FIVE PERCENT STAKE IN CANAL PLUS WITH THE TWENTY POINT ONE PERCENT OWNED BY FRANCE'S COMPANY GENERALE DES EAUX MR. ROUSSELET STORMED OUT OF A HAVAS BOARD MEETING LAST WEEK FOLLOWING THE DECISION WHICH HE APPARENTLY VIEWED AS A THREAT TO HIS AUTONOMY MR. ROUSSELET IS A FOUNDER OF CANAL PLUS WHICH BEGAN OPERATIONS IN NINETEEN EIGHTY FOUR AFTER THE COMPANY GOT OFF TO A FITFUL START MR. ROUSSELET TWO YEARS LATER NEGOTIATED A FAVORABLE BROADCASTING LICENSE FROM THE GOVERNMENT THAT GREATLY IMPROVED THE PAY T. V. COMPANY'S FORTUNES QUOTE WE FOUND A BEE GUH ER QUOTE THE VOICE OVER THE PHONE SANG IN CHINESE AT SEVEN FORTY FIVE IN THE MORNING HE HAS LONG EARS CAN YOU MEET ME UNDER THE BRIDGE AT FOUR THIS AFTERNOON TO HAVE A LOOK THE STERILIZATION OF LIFE THAT ACCOMPANIED THE RISE TO POWER OF THE CHINESE COMMUNISTS IN NINETEEN FORTY NINE BROUGHT WITH IT AN ABOLITION OF PROSTITUTION OPIUM USE AND THE UNEQUAL DISTRIBUTION OF POVERTY IT ALSO BROUGHT FOR HEALTH REASONS A PROHIBITION AGAINST DOGS AS PETS IN CHINA'S TEEMING CITIES FOR THE NEXT FORTY YEARS THE ONLY CHINESE PERMITTED TO KEEP DOGS WERE PEASANTS SOME WERE RAISED AS PETS OTHERS TO SATISFY CHINA'S APPETITE FOR DOG MEAT WITHIN THE PAST TWO YEARS HOWEVER AS CHINA HAS LOOSENED ITS NOOSE AROUND MOST NONPOLITICAL AREAS OF LIFE PUPPIES HAVE BEGUN TO POUR INTO CHINA'S CITIES TO THE DELIGHT OF MILLIONS OF CHINESE CHILDREN JUST IN TIME FOR THE YEAR OF THE DOG THE LUNAR NEW YEAR THAT BEGAN LAST WEEK INTELLIGENCE ABOUT NOUVEAU RICHE CHINA'S LATEST CRAZE HAD REACHED ME IN NEW YORK IN A LETTER FROM SICHUAN PROVINCE EARLIER IN THE YEAR BUT IN STAID BEIJING I FOUND ON ARRIVAL IT WASN'T SO EASY TO MAKE A CANINE CONNECTION FUCHENGMEN STATION ON BEIJING'S LOOP SUBWAY LINE PROVED TO BE A STOP TOO SOON AT THE NEXT STOP A FRUIT PEDDLER ADVISED THAT THE GUAN YUAN AGRICULTURAL MARKET WHICH IN THE PAST HAD OFFERED PUPPY DOGS HAD BEEN TORN DOWN TO MAKE WAY FOR A NEW HIGH RISE THE PRESENT PUPPY LOCATION SHE COUNSELED WAS ADJACENT TO THE BIRD MARKET AT THE XI ZHI MEN BRIDGE COLORFUL BIRDS AND AQUARIUM FISH ARE CHINA'S TRADITIONAL HOUSE PETS AND AT THE XI ZHI MEN BIRD MARKET DOZENS OF VENDORS IN OUTDOOR STALLS WERE SELLING CANARIES AND PARAKEETS IN CAGES CAGES WITHOUT BIRDS BIRDS WITHOUT CAGES AND BIRDSEED BUT PUPPIES WERE NOWHERE TO BE SEEN WHAT KIND OF A DOG ARE YOU LOOKING FOR ASKED A MAN STRADDLING A BICYCLE WHO LATER GAVE HIS TRADE NAME AS MR. PUPPY SALES XU AN AMERICAN DOG I ANSWERED PRESENTING MYSELF AS A BEIJING BASED BUSINESSMAN WHO DEALT IN INDUSTRIAL PLASTICS QUOTE HOW ABOUT A CHINESE DOG QUOTE HE REPLIED AND HE ZIPPED OPEN HIS JACKET POCKET AND OUT POKED A PUG FACED POOCH JUST A FEW WEEKS OLD SOMETHING WITH LONGER EARS I SAID HOW ABOUT THIS A COLLEAGUE A FEW STEPS AWAY BY THE NAME OF GUO BROKE IN HE OPENED A CANVAS BAG AND OUT PEEKED A TINY TERRIER MR. GUO STARTING TO GET SILLY SAID HE HAD A DOG WITH AN AMERICAN PASSPORT IF HE HAS A VALID PASSPORT I SAID I WILL PAY FIVE HUNDRED DOLLARS SIGHT UNSEEN MR. GUO WHO UNLIKE MR. XU SELLS DOGS AS A SIDELINE ASKED WHAT KIND OF A DOG I WAS REALLY INTERESTED IN WITHOUT A CLUE AS TO WHAT DOGS OTHER THAN PEKINGESE ARE CALLED IN CHINESE AND NOT FINDING THE PICTURE I WAS LOOKING FOR IN ONE HUNDRED FAMOUS BREEDS THE STANDARD DOG REFERENCE IN BEIJING I STARTED TO DESCRIBE A DOG ABOUT A FOOT HIGH WITH FIVE INCH EARS AND BROWN BLACK AND WHITE COLORING I NEEDN'T HAVE WORKED SO HARD BEE GUH ER IS A WORKING TERM IN CHINESE DOG CIRCLES THE DISCUSSION TURNED TO WHETHER I PREFERRED A CROPPED TAIL DOGS ESPECIALLY BEAGLES DON'T LIKE THEIR TAILS LOPPED I ARGUED QUOTE THEY DON'T CARE QUOTE MR. GUO COUNTERED A TAIL IS LIKE A RUDDER ON A SHIP I RETORTED HOW IS A BEAGLE GOING TO CHASE RABBITS THROUGH THE WOODS WITHOUT HIS TAIL IF HE COULD LOCATE A BEAGLE MR. GUO SAID HE WOULD GIVE ME A CALL THE PRICE WOULD BE ONE THOUSAND YUAN ONE HUNDRED EIGHTY DOLLARS WITH OR WITHOUT THAT WAS TWO HUNDRED PERCENT OR MORE BELOW THE BEAGLE MARKET IN CHINA I LATER LEARNED BEWARE OF BAIT AND SWITCH A BEIJING FRIEND WARNED BECAUSE CHINA AS YET HAS NO KENNEL CLUBS WHICH CERTIFY BREEDS ONE HUNDRED TWENTY FAMOUS BREEDS ANOTHER STANDARD REFERENCE EXHORTS AUTHENTICATING PURE BREEDS CAN BE A PROBLEM MOST OF CHINA'S BIG CITIES NOW HAVE DOG MARKETS BUT FEW BEAT THE BUSTLE IN CHENGDU ON WEDNESDAYS THE GREEN SHEEP PALACE DOG MARKET DRAWS DOZENS OF MERCHANTS AND HUNDREDS OF BUYERS AND ON SUNDAYS TEN THOUSAND CUSTOMERS LITTLE BOYS AND GIRLS IN TOW SLITHER SHOULDER TO SHOULDER THROUGH THE AISLES AND LANES THE MARKET BEGINS ON THE MAIN AVENUE WHERE MIXED BREEDS DISPLAYED IN SATCHELS WICKER BASKETS BICYCLE BASKETS AND ON RIBBON LEASHES ARE OFFERED AT PAVEMENT'S EDGE FOR ONE HUNDRED DOLLARS OR LESS MOST ARE JUST WEEKS OLD SOMETIMES A COMPLETE LITTER IS HUDDLED IN A BOX THE HALF MILE LONG EARTHEN LANE THAT LEADS FROM THE AVENUE TO THE HEART OF THE MARKET IS WHERE DOG ACCESSORIES CAGES BASKETS FOR SLEEPING LEASHES AND DOG FOOD ARE SOLD WITH NO DOMESTIC PET FOOD INDUSTRY THE MOST AFFLUENT CHINESE FEED THEIR DOGS OFF OF THEIR PLATES FOR MANY DOGS IN CHINA THOUGH FOOD IS BUTCHER SHOP UNCONSUMABLES SOLD BY WEIGHT OUT OF BULK CONTAINERS THE MORE CAREFULLY BRED DOGS IN CHENGDU ARE SOLD BY PROFESSIONALS IN COVERED LICENSED STALLS HERE YOU CAN FIND BETTER MIXED BREEDS AT FIVE HUNDRED DOLLARS SHIH TZUS FOR ONE THOUSAND FOUR HUNDRED DOLLARS AND PEKINGESE FOR FIVE THOUSAND DOLLARS MANY MERCHANTS ARE QUITE SATISFIED TO SELL JUST ONE DOG A WEEK THE STALL AREA ALSO INCLUDES IMPORTED DOG PERFUMES AND OTHER GROOMING AIDES IMPORTED DOG FOOD AND TOYS FOR PUPS THE MOST EXPENSIVE DOGS IN CHINA SUCH AS ALL WHITE BREEDING FEMALE PEKINGESE ARE OFFERED PRIVATELY FOR FIFTEEN THOUSAND DOLLARS AND MORE LOCAL GOVERNMENTS IN CHENGDU AND ELSEWHERE IN CHINA MAKE LITTLE EFFORT TO REGULATE THE HEALTH OF DOGS FOR SALE DOG LICENSES EXIST BUT FEW PURCHASE THEM CHENGDU MAINTAINS A PUBLICLY RUN PET CLINIC AT THE ENTRANCE TO THE GREEN SHEEP PALACE DOG MARKET WHERE FOR FIFTEEN DOLLARS A PUPPY CAN BE INNOCULATED BUT THERE IS NO MONITORING AND MOST OWNERS CHOOSE TO SAVE THE FEE WITH LITTLE HEALTH SUPERVISION CUDDLY BALLS OFTEN LATER EMERGE AS SICK PUPS IN FACT MANY NEW DOG OWNERS EAGER TO PLEASE AN ONLY CHILD HAVE NO IDEA AT ALL WHAT THEY ARE GETTING INTO A FEW MONTHS AFTER PURCHASE THEY UNLOAD THEIR FURRY BUNDLE AT A STEEP DISCOUNT MANY CHINESE HAVE AS LITTLE AS ONE HUNDRED OR TWO HUNDRED SQUARE FEET TO LIVE IN FURTHER WITH FEW OPEN OUTDOOR SPACES OR EVEN EMPTY SIDEWALKS CHINA'S DOGS ARE RARELY TAKEN OUT FOR WALKS INSTEAD THEY ARE TRAINED TO VISIT PANS THAT ARE LEFT FOR THEM IN THEIR CAGES OR IN A CORNER OF THE APARTMENT ACCURACY ISN'T ALWAYS THE BEST WITH THE POOL OF BREEDING STOCK STILL TINY MANY CHINESE PET DOGS COME FROM LONG DISTANCES A WOMAN IN HER TWENTIES I MET STANDING IN FRONT OF ONE OF BEIJING'S MOST CHIC DEPARTMENT STORES CRADLING A PUPPY IN A BASKET HAD TRAVELED THIRTY THREE HOURS ON THE TRAIN TO BEIJING FROM CANTON SHE HAD BROUGHT ALONG FOUR YOUNG PUPS WHICH SHE WAS SELLING FOR ONE HUNDRED DOLLARS EACH HER DOGS CAME FROM SHENZHEN ADJACENT TO HONG KONG OTHER DOGS COME OVER THE BORDER FROM RUSSIA STILL OTHERS ARE BRED LOCALLY OR IN OTHER PARTS OF THE COUNTRY IN TODAY'S MONEY ORIENTED CHINA WHERE ALMOST EVERYONE IS ANGLING TO BECOME AN ENTREPRENEUR BREEDING PUPPIES AT HOME PROVIDES AN ADDITIONAL OPPORTUNITY BREEDING STOCK IS OFTEN WHAT CAN BE BORROWED I FOUND THAT OUT FIRST HAND LAN LAN AN ALMOST LHASA APSO ONE YEAR OLD PURCHASED FOR FOUR HUNDRED FIFTY DOLLARS FROM BEAUTY SALON PROFITS WAS UNABLE TO MEET ME AT CHENGDU AIRPORT RONG RONG HIS MISTRESS WHO FIRST CLUED ME INTO CHINA'S PUPPY DOG RAGE FROM AFAR EXPLAINED AT THE GATE THAT LAN LAN WAS AWAY ON LOAN ON BREEDING BUSINESS COURTING TWO GIRLFRIENDS HE WOULD BE ALLOWED HOME WHEN POSTERITY WAS SERVED MR. KOLATCH WRITES FREQUENTLY ABOUT CHINA HOBBLED BY WEAKER RETAIL DEMAND FOR ITS CORE WOMEN'S SPORTSWEAR LIZ CLAIBORNE INCORPORATED AS EXPECTED POSTED A SEVENTY TWO PERCENT DECLINE IN FOURTH QUARTER PROFIT AND A FORTY TWO PERCENT DROP IN EARNINGS FOR ALL OF NINETEEN NINETY THREE THE NEW YORK APPAREL MAKER SAID FOURTH QUARTER NET PLUNGED TO FOURTEEN POINT NINE MILLION DOLLARS OR NINETEEN CENTS A SHARE FROM FIFTY ONE POINT NINE MILLION DOLLARS OR SIXTY THREE CENTS A SHARE A YEAR EARLIER SALES WERE FLAT AT FIVE HUNDRED FORTY FOUR MILLION DOLLARS FOR NINETEEN NINETY THREE CLAIBORNE'S PROFIT FELL TO ONE HUNDRED TWENTY SIX POINT NINE MILLION DOLLARS OR ONE DOLLAR AND FIFTY SIX CENTS A SHARE DOWN FROM TWO HUNDRED EIGHTEEN POINT EIGHT MILLION DOLLARS OR TWO DOLLARS AND SIXTY ONE CENTS A SHARE A YEAR EARLIER JEROME CHAZEN CHAIRMAN AND CHIEF EXECUTIVE SAID QUOTE WITHOUT A DOUBT NINETEEN NINETY THREE WAS THE TOUGHEST YEAR WE'VE EVER HAD QUOTE HE ADDED THAT ON THE WHOLE WE VIEW NINETEEN NINETY FOUR AS A YEAR OF REBUILDING AND RESTRUCTURING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CLAIBORNE SHARES CLOSED AT TWENTY DOLLARS AND FIFTY CENTS A SHARE UP TWELVE POINT FIVE CENTS HEIKO THIEME LIKES TO PLAY WITH ROCKET FUEL TINY RISKY STOCKS THAT MIGHT PAY OFF BIG HE OFTEN INVESTS IN THEM THROUGH PRIVATE PLACEMENTS WHICH AREN'T AVAILABLE TO THE GENERAL PUBLIC FOR THE PAST THREE YEARS SUCH STOCKS HAVE HELPED PROPEL MR. THIEME TO THE TOP OF THE MUTUAL FUND ROSTERS BUT LATELY HIS HIGH FLYING PICKS ARE SPUTTERING SO FAR IN NINETEEN NINETY FOUR HIS AMERICAN HERITAGE FUND IS DOWN ABOUT FIVE PERCENT WHILE THE OVERALL MARKET IS UP ABOUT ONE PERCENT HIS PORTFOLIO WAS TORPEDOED LAST WEEK BY ITS SECOND BIGGEST HOLDING SPECTRUM INFORMATION TECHNOLOGIES AMERICAN HERITAGE WAS THE LARGEST SINGLE HOLDER OF SPECTRUM WHICH LOST SOME FORTY PERCENT LAST WEEK AND IS DOWN NEARLY SEVENTY PERCENT SINCE JOHN SCULLEY FORMER HEAD OF APPLE COMPUTER TOOK THE HELM IN OCTOBER ON FEBRUARY SEVENTH MR. SCULLEY JUMPED SHIP CHARGING AMONG OTHER THINGS THAT SPECTRUM HAD DECEIVED HIM ABOUT ITS FINANCIAL SITUATION WHICH THE COMPANY THEN HAD TO RESTATE UNDAUNTED MR. THIEME BOUGHT MORE SPECTRUM STOCK EVEN AS IT PLUNGED QUOTE LOOK I'M AN AGGRESSIVE GROWTH FUND I'M HERE TO TAKE RISKS HE SAYS MR. THIEME'S PREDILECTION FOR RISK IS EVIDENT IN HIS FUND'S OTHER HOLDINGS TOO HE KEEPS TEN PERCENT TO FIFTEEN PERCENT OF HIS PORTFOLIO IN PRIVATE PLACEMENTS OR RESTRICTED SECURITIES THAT DON'T TRADE PUBLICLY HE OWNS STOCKS IN COMPANIES SO SMALL YOU WON'T FIND THEM IN NEWSPAPERS' DAILY LISTINGS FOR THE NASDAQ STOCK MARKET AND HE USED FIVE PERCENT TO TEN PERCENT OF THE FUND'S PORTFOLIO TO GAMBLE ON SHORT TERM PRICE BLIPS WHAT'S MORE HE SOMETIMES USES BORROWED MONEY TO TRY TO JUICE UP THE FUND'S RETURNS IN THE PAST THREE YEARS THE WAGERS HAVE PAID OFF AMERICAN HERITAGE IS THE TOP GENERAL STOCK FUND IN THE U. S. FOR THE THREE YEARS THROUGH FEBRUARY THIRD NEARLY TRIPLING ITS VALUE ACCORDING TO LIPPER ANALYTICAL SERVICES PREDICTABLY RED HOT RESULTS HAVE ATTRACTED A FLOOD OF MONEY THE FUND DWINDLED TO ABOUT ONE MILLION DOLLARS ON TERRIBLE PERFORMANCE WHEN MR. THIEME A GERMAN BORN MANAGER WHO FOR YEARS SERVED AS A CONSULTANT TO DEUTSCHE BANK TOOK IT OVER IN FEBRUARY NINETEEN NINETY SINCE THEN ITS ASSETS HAVE SWELLED TO ABOUT ONE HUNDRED FIFTY MILLION DOLLARS STILL THERE ARE SOME DETRACTORS STAN TRILLING A PAINEWEBBER BROKER IN LOS ANGELES SAYS HE DOUBTS MANY INVESTORS REALIZE HOW MUCH OF MR. THIEME'S SUCCESS COMES FROM GETTING SMALL COMPANIES TO SELL HIM CHEAP STOCK IN PRIVATE PLACEMENT DEALS I WENT IN TO PITCH HIM ON A PARTICULAR STOCK MR. TRILLING RECALLS HE SAID HE WAS ONLY INTERESTED IF HE COULD GET IT AT A DISCOUNT FROM THE PREVAILING MARKET PRICE SUCH A DISCOUNT HELPED BOOST THE PERFORMANCE OF MR. THIEME'S BIGGEST PICK SENETEK THE SMALL BRITISH BIOTECHNOLOGY COMPANY IS WORKING ON A DRUG TO TREAT MALE IMPOTENCE AND JOHNSON AND JOHNSON PLANS TO MARKET THE DRUG IN THE U. S. IF IT IS APPROVED HERE DURING THE PAST YEAR AND A HALF SENETEK SHARES SOARED TO ABOVE FIVE DOLLARS FROM ABOUT ONE DOLLAR BUT MR. THIEME'S PAPER GAINS ARE EVEN LARGER HE BOUGHT ONE POINT NINE MILLION SHARES IN A PRIVATE PLACEMENT DEAL IN SEPTEMBER NINETEEN NINETY TWO AT FIFTY CENTS A SHARE ABOUT HALF SENETEK'S PUBLICLY TRADED PRICE AROUND THAT TIME MR. TRILLING SUGGESTS THAT IT'S THOSE SORTS OF MANEUVERS MORE THAN STOCK PICKING SKILLS THAT HAVE VAULTED MR. THIEME TO THE TOP OF THE PERFORMANCE RANKINGS HE HAS SEXY NUMBERS BUT HE'S NOT FOR ME SAYS MICHAEL STOLPER A SAN DIEGO INVESTMENT CONSULTANT THERE ARE POINTS OF AGGRESSIVENESS IN MR. THIEME'S INVESTMENT STYLE THAT MAKE ME UNCOMFORTABLE THERE'S NOT AN OUNCE OF HUMILITY IN THE MAN QUOTE FOR HIS PART MR. THIEME AGREES THAT MANY OF HIS INVESTMENT POSITIONS ARE HIGH RISK BUT HE POINTS OUT THAT HE ALSO INVESTS IN BIG COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES WESTINGHOUSE ELECTRIC CITICORP AND PHILIP MORRIS OFTEN WHEN THEIR STOCKS HAVE BEEN BEATEN DOWN MR. THIEME CONCURS THAT HE OFTEN BUYS STOCK FROM SMALL PUBLIC COMPANIES AT A DISCOUNT FROM PUBLIC MARKET PRICES AMERICAN HERITAGE IS RESTRICTED FROM SELLING THIS STOCK FOR A PERIOD OF TIME WHICH CAN RANGE FROM AS LITTLE AS A MONTH TO AS MUCH AS TWO YEARS THE DISCOUNTS ARE OFTEN TEN PERCENT TO FORTY PERCENT HE SAYS BUT CAN RUN AS HIGH AS FIFTY PERCENT TO SEVENTY PERCENT ON THE MOST SPECULATIVE STOCKS HOWEVER MR. THIEME POOH POOHS THE IDEA THAT DISCOUNTS DRIVE HIS GOOD THREE YEAR RECORD THEY MAKE ONLY A NEGLIGIBLE CONTRIBUTION TO OVERALL RESULTS HE SAYS YET IN THE SAME BREATH HE BOASTS THAT HE FIGHTS TO REAP AS MUCH AS WE CAN CONCEIVABLY JUSTIFY IN DISCOUNTS SEVERAL THINGS MAY IMPEL COMPANIES TO OFFER DISCOUNTS ON THEIR STOCK TO BIG BUYERS THEY MAY NEED MONEY QUICKLY OR MAY NOT WANT TO PUT UP WITH THE EXPENSE OR THE SCRUTINY OF A PUBLIC STOCK OFFERING SOME MONEY MANAGERS CONSIDER SUCH SPECIAL TREATMENT UNFAIR IF A STOCK IS TRADING AT TWENTY DOLLARS WHY SHOULD SOMEBODY HAVE THE RIGHT TO BUY IT AT EIGHTEEN DOLLARS DEMANDS BRETT BRUBAKER PRESIDENT OF ABRAHAM AND SONS IN CHICAGO I'M TICKED THAT'S NOT FAIR ASKED WHY COMPANIES GIVE HIM DISCOUNTS MR. THIEME SAYS THAT HAVING AMERICAN HERITAGE AS A HOLDER CONFERS SOME PRESTIGE AND LEGITIMACY ON A COMPANY QUOTE IF WE'RE IN AND WE'RE THE NUMBER ONE FUND FOR THE PAST THREE YEARS WALL STREET TRADES ON PERCEPTION QUOTE HE SAYS UNTIL LATELY HAVING MR. THIEME AS A SHAREHOLDER PROVIDED ANOTHER BENEFIT HE OFTEN TOUTED HIS FAVORITE STOCKS ON BUSINESS TELEVISION NETWORK C. N. B. C. WHERE HE WAS A REGULAR GUEST BUT MR. THIEME RECENTLY WAS TOLD HIS SERVICES ON C. N. B. C. WOULDN'T BE REQUIRED AS OFTEN AS BEFORE PETER STURTEVANT VICE PRESIDENT OF DAYTIME NEWS AT C. N. B. C. SAYS THE CABLE NETWORK HAS NOTHING AGAINST MR. THIEME BUT WANTS TO GET FRESH FACES INTO ITS MIX EVERY ONCE IN A WHILE WE SHAKE UP THE LIST OF NAMES HE SAYS BUT MR. THIEME ISN'T HAPPY ABOUT THE WAY C. N. B. C. GAVE HIM THE COLD SHOULDER THEY SAID DON'T BOTHER TO COME UNLESS WE CALL HE FUMES I'M NOT A LITTLE WEASEL IN ANY CASE MR. THIEME IS AT NO LOSS FOR NEW PLANS HE INTENDS TO START A MORE CONSERVATIVE MUTUAL FUND SOON AND ALSO TO LAUNCH A HEDGE FUND A PRIVATE INVESTMENT PARTNERSHIP FOR WEALTHY INVESTORS HE'S ALSO TOYING WITH THE IDEA OF TRYING TO CONVERT AMERICAN HERITAGE FROM AN OPENEND MUTUAL FUND TO A CLOSED END FUND UNLIKE OPEN END FUNDS CLOSED END FUNDS ISSUE A FIXED NUMBER OF SHARES WHICH TRADE PUBLICLY LIKE NORMAL STOCKS THAT SETUP RELIEVES CLOSED END FUND MANAGERS OF HAVING TO COPE WITH A FLOOD OF REDEMPTIONS IN TIMES OF LOSS OR A CASCADE OF NEW MONEY TO INVEST WHEN PERFORMANCE IS GOOD IF AMERICAN HERITAGE WERE CLOSED END MR. THIEME SAYS IT COULD EASE THE PRESSURE ON HIM TO PRODUCE SHORT TERM RESULTS WALL STREET THINKS LONG TERM IS NEXT MONDAY HE SAYS SOTHEBY'S HOLDINGS INCORPORATED NAMED ITS CHIEF OF MARKETING WILLIAM RUPRECHT TO THE NEW POSITION OF MANAGING DIRECTOR OF NORTH AND SOUTH AMERICAN OPERATIONS MR. RUPRECHT THIRTY EIGHT YEARS OLD WILL OVERSEE MOST DAY TO DAY OPERATIONS OF THE NEW YORK BASED AUCTION HOUSE FREEING DIANA D. BROOKS NOW WORLD WIDE HEAD OF AUCTION OPERATIONS FROM MANY OF HER ADMINISTRATIVE DUTIES IN THE U. S. SHE TAKES OVER AS SOTHEBY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ON APRIL FIRST AS PREVIOUSLY ANNOUNCED MR. RUPRECHT'S PROMOTION WAS ONE OF A SERIES THAT APPEARS TO TIP THE FIRM'S HAND TO WHAT SOTHEBY'S THINKS MAY BE THE ART MARKET'S GROWTH AREAS OF THE NINETEEN NINETIES FIVE EXECUTIVE VICE PRESIDENTS WERE NAMED DAVID NASH FIFTY ONE THE WORLD WIDE HEAD OF PAINTINGS AND SCULPTURE ROBERT WOOLLEY FIFTY WHOSE THEATRICAL AUCTIONEERING STYLE AT BENEFIT AUCTIONS HAS GARNERED THE COMPANY A GREAT DEAL OF PUBLICITY IN THE FASHION AND SOCIETY PRESS WARREN WEITMAN FORTY EIGHT HEAD OF BUSINESS DEVELOPMENT WHICH OVERSEES SOTHEBY'S TRUSTS AND ESTATES DIVISION AND APPRAISAL DIVISIONS AND JOHN BLOCK FORTY FIVE HEAD OF SOTHEBY'S JEWELRY DEPARTMENT THE COMPANY'S FASTEST GROWING AND MOST LUCRATIVE AREA MR. RUPRECHT THE NEW MANAGING DIRECTOR ALSO ADDED THE TITLE OF EXECUTIVE VICE PRESIDENT DURING THE ART MARKET BOOM OF THE LATE NINETEEN EIGHTIES AND SUBSEQUENT RECESSION MR. RUPRECHT OVERSAW THE COMPANY'S MARKETING EFFORTS HE PREVIOUSLY HEADED THE ORIENTAL RUG AND ANTIQUE CAR SALES DEPARTMENTS AND IS PERHAPS BEST KNOWN AS THE FIRM'S DEEP VOICED AUCTIONEER OF WATCHES NINETEENTH CENTURY PAINTINGS RUGS AND DECORATIVE ARTS AFTER YEARS OF A WEAK ART MARKET QUOTE THE CUP IS MORE THAN HALF FULL QUOTE SAID MR. RUPRECHT THERE IS AN ENERGY AND ENTHUSIASM AND OPTIMISM AT SOTHEBY'S NOW HE SAYS MRS. BROOKS FORTY THREE WHO IS SUCCEEDING PRESIDENT MICHAEL AINSLIE FIFTY ONE SPENDS MUCH OF HER TIME TRAVELING TO THE FIRM'S SALESROOMS AROUND THE WORLD AND SAID MR. RUPRECHT'S PROMOTION WILL FREE HER FROM ADMINISTRATIVE MATTERS HOWEVER SEVERAL DEPARTMENT HEADS WILL REPORT TO MR. RUPRECHT ON ADMINISTRATIVE CONCERNS SUCH AS STAFFING BUT WILL REPORT TO MRS. BROOKS ON STRATEGY AND AUCTION ISSUES SAINT JUDE MEDICAL INCORPORATED AGREED TO INVEST FIVE MILLION DOLLARS IN ADVANCED TISSUE SCIENCES INCORPORATED TO WORK WITH THE LA JOLLA CALIFORNIA COMPANY ON POSSIBLE DEVELOPMENT OF HEART VALVES FROM HUMAN TISSUE BASED IN SAINT PAUL MINNESOTA SAINT JUDE THE NATION'S BIGGEST MAKER OF MECHANICAL HEART VALVES WILL PAY FIVE MILLION DOLLARS FOR FIVE HUNDRED SIXTY THREE THOUSAND SHARES OR ONE POINT EIGHT SEVEN PERCENT OF ADVANCED TISSUE'S COMMON STOCK THE TWO COMPANIES WILL ALSO STUDY THE FEASIBILITY OF HEART VALVE REPLACEMENTS MADE FROM HUMAN TISSUE ADVANCED TISSUE SCIENCES REPLICATES HUMAN TISSUE BY PUTTING SAMPLES OF TISSUE IN A SIMULATED CELL GROWTH ENVIRONMENT QUOTE WE FOOL THE CELLS INTO THINKING THEY'RE IN THE BODY QUOTE SAID GAIL K. NAUGHTON EXECUTIVE VICE PRESIDENT IN THE AGREEMENT WITH SAINT JUDE ADVANCED TISSUE HOPES TO CREATE A FULLY HUMAN HEART VALVE USING LIVING CELLS FROM THE LINING OF BLOOD VESSELS CURRENTLY MECHANICAL HEART VALVES REQUIRE PATIENTS TO TAKE ANTICOAGULANTS FOR LIFE A FULLY HUMAN TISSUE HEART VALVE WOULD NOT REQUIRE ANTICOAGULANTS ANDREAS PAPANDREOU GREECE'S SEPTUAGENARIAN PRIME MINISTER HAS A KNACK FOR BEATING THE ODDS HE TWICE WAS IMPRISONED AND EXILED BEFORE SERVING TWO TERMS AS GREECE'S ONLY SOCIALIST PRIME MINISTER SCANDAL RECORD INFLATION AND A MASSIVE BUDGET DEFICIT LED TO A HUMILIATING DEFEAT IN NINETEEN EIGHTY NINE STILL MR. PAPANDREOU BEAT CHARGES THAT HE ACCEPTED BRIBES HE SURVIVED TRIPLE BYPASS HEART SURGERY AND MARRIED A WOMAN HALF HIS AGE LAST FALL HE STAGED A STUNNING POLITICAL COMEBACK THE QUESTION NOW IS CAN MR. PAPANDREOU MANAGE HIS NATION'S TROUBLES AS HANDILY AS HE TRIUMPHED OVER HIS OWN OR MORE BLUNTLY CAN ONE OF EUROPE'S FRAILEST LEADERS NURSE ONE OF THE EUROPEAN UNION'S WEAKEST COUNTRIES BACK TO HEALTH NOT ONLY EUROPEAN AND AMERICAN LEADERS BUT INVESTORS AROUND THE WORLD ARE WATCHING AND WONDERING IF MR. PAPANDREOU AND HIS PANHELLENIC SOCIALIST MOVEMENT OR PASOK UNDO THE PRO BUSINESS PRO PRIVATIZATION PROGRAMS OF THE CONSERVATIVE GOVERNMENT OUSTED LAST OCTOBER IT WILL THWART URGENT ECONOMIC REFORMS BUT PROGRESS REQUIRES SELLING INEFFICIENT STATE OWNED COMPANIES FROM SHIPYARDS AND CASINOS TO THE NATIONAL AIRLINE AND TELEPHONE COMPANY AND RIDDING THEM OF THOUSANDS OF WORKERS MANY OF THEM PASOK SUPPORTERS QUOTE WE HAVE A REALITY WHERE THERE IS VERY LITTLE ROOM FOR ERROR QUOTE ACKNOWLEDGES THEODOROS PANGALOS GREECE'S MINISTER FOR EUROPEAN AFFAIRS A KEY PAPANDREOU ADVISER MOREOVER GREECE'S CONSTANT BICKERING WITH NEIGHBORING MACEDONIA ALBANIA AND ITS LONGTIME ENEMY TURKEY THREATENS TO WIDEN THE TURMOIL IN THE BALKAN REGION MR. PAPANDREOU'S BIGGEST CHALLENGE ISN'T ABROAD HOWEVER BUT AT HOME MR. PAPANDREOU NOW SEVENTY FIVE IS FAR FROM VIGOROUS HE IS NOTHING LIKE THE FIST POUNDING SPEAKER WHO IN THE EARLY NINETEEN EIGHTIES THREATENED TO KICK OUT U. S. MILITARY BASES AND TO WITHDRAW GREECE FROM NATO THE MAN WHO ONCE GAVE TWO HOUR EXTEMPORANEOUS SPEECHES SOUNDS NOW AS THOUGH HE IS ABOUT TO RUN OUT OF BREATH ANY MINUTE HE MADE ONLY THREE SPEECHES DURING THE TWENTY FIVE DAY CAMPAIGN LAST FALL AND SINCE HE TOOK OFFICE HE HAS JOINED DEBATES IN PARLIAMENT ONLY FOUR TIMES THE LAST TIME AFTER RETURNING FROM A NATO SUMMIT IN BRUSSELS AIDES HELD HIS ARMS AS IF TO SUPPORT HIM WHEN HE ENTERED THE CHAMBER HALF THE MINISTERS IN MR. PAPANDREOU'S GOVERNMENT ARE OVER SIXTY YEARS OLD MOST SERVED IN HIS PREVIOUS ADMINISTRATIONS TWO HAVE CANCER BUT NOT ALL HIS STAFF IS OLD IN ONE OF HIS FIRST OFFICIAL ACTS MR. PAPANDREOU NAMED AS HIS APPOINTMENTS SECRETARY HIS SECOND WIFE DIMITRA THIRTY NINE A FORMER OLYMPIC AIRLINE FLIGHT ATTENDANT WITH WHOM HE CONDUCTED A PUBLIC AFFAIR BEFORE DIVORCING HIS WIFE OF THIRTY SIX YEARS AND REMARRYING IN NINETEEN EIGHTY NINE THE NEW MRS. PAPANDREOU HAS CAUSED A STIR IN GREECE'S MALE DOMINATED SOCIETY WITH A STAFF OF TWO HUNDRED SHE STAYS CLEAR OF POLICY MAKING AIDES INSIST BUT SHE OVERSEES HER HUSBAND'S SCHEDULE AND CAN VETO APPOINTMENTS TO SEE HIM THE PRIME MINISTER AND HIS WIFE DECLINED TO BE INTERVIEWED MR. PAPANDREOU'S SUPPORTERS SAY HE IS HEALTHY THEY POINT TO HIS SCHEDULE AT THE TWO DAY BRUSSELS SUMMIT WHERE HE GAVE A KEYNOTE SPEECH HOSTED A WORKING DINNER FOR FOREIGN LEADERS AND MET TWICE WITH PRESIDENT CLINTON I CALL HIM AT ONE A. M. AND HE'S STILL AWAKE SAYS THE PRIME MINISTER'S SON GEORGE PAPANDREOU A DEPUTY FOREIGN MINISTER AND EVEN HIS ADVERSARIES DON'T COUNT HIM OUT HE IS A VERY CLEVER SICK MAN SAYS NIKOLAOS KATSAROS OPPOSITION LEADER IN PARLIAMENT MR. PAPANDREOU'S AIDES INSIST THAT PASOK IS FAR MORE MODERATE NOW CHASTENED BY THE ECONOMIC PROBLEMS THAT OCCURRED DURING ITS REIGN IN THE NINETEEN EIGHTIES THE MAN WHO A DECADE AGO ROAMED GREECE'S COUNTRYSIDE IN SHIRTSLEEVES ADVOCATING PROFIT CEILINGS SOUNDS DOWNRIGHT REAGANITE AT TIMES HE TOLD THE GREEK PARLIAMENT AFTER HIS ELECTION ALL THE COMPLEX AND TIME CONSUMING ADMINISTRATIVE PROCEDURES THAT MAKE LIFE DIFFICULT FOR THE CITIZEN MUST BE SIMPLIFIED THE WORDS COMPETITIVENESS AND PRODUCTIVITY PEPPER HIS PUBLIC STATEMENTS BEING A SOCIALIST DOESN'T MEAN NOT FACING REALITY SAYS MR. PANGALOS THE GOVERNMENT MINISTER ADDS CULTURE MINISTER MELINA MERCOURI QUOTE THIS IS SOCIALISM WITH A NEW FACE QUOTE AND INDEED GREECE IS AN INTRIGUING MARKET FOR FOREIGN INVESTORS THOUGH THE POOREST OF THE TWELVE E. U. COUNTRIES BY SOME MEASURES ITS OFFICIAL AVERAGE INCOME IS ABOUT SEVEN THOUSAND TWO HUNDRED DOLLARS A YEAR IT HAS A LARGE UNDERGROUND ECONOMY ESTIMATED AT FORTY PERCENT OF GROSS DOMESTIC PRODUCT SOME SEVENTY PERCENT OF THE POPULATION OWN THEIR OWN HOME YOU HAVE A WELL EDUCATED POPULATION AND A STRONG PRIVATE SECTOR THE PROBLEM IS THE MAN ON THE STREET SHOWS MORE LEADERSHIP THAN THE MEN IN THE MINISTRIES SAYS PROFESSOR THANOS VEREMIS A GREEK WHO TEACHES EUROPEAN AFFAIRS AT OXFORD UNIVERSITY MANY CRITICS SAY MR. PAPANDREOU'S ACTIONS HAVEN'T CAUGHT UP WITH HIS FREEMARKET RHETORIC AS A RESULT THE INITIAL ECONOMIC PROGRESS MADE BY THE PREVIOUS GOVERNMENT IS ENDANGERED THEY SAY THE STOCK MARKET TOOK OFF IN NINETEEN NINETY WHERE THERE ONCE WERE THREE WOODEN TRADING RIMS ON THE ATHENS STOCK EXCHANGE FLOOR MORE THAN ONE HUNDRED FOURTEEN COMPUTERIZED TERMINALS NOW HANDLE THE TRADING VOLUME BUT GOVERNMENT HAS PUT UNDER REVIEW PLANS TO SELL OFF MORE THAN THREE BILLION DOLLARS IN STATE OWNED ENTERPRISES TO REDUCE THE DEFICIT AND TO BUILD A STATE OF THE ART INTERNATIONAL AIRPORT OUTSIDE ATHENS WITH TWO POINT NINE BILLION DOLLARS IN PRIVATE AND E. U. FUNDS ALREADY INVESTORS ARE NERVOUS MOST WORRISOME TO POTENTIAL INVESTORS IS THE ABOUT FACE ON THE PRIVATIZATION OF HELLENIC TELECOMMUNICATIONS ORGANIZATION THE NATIONAL PHONE COMPANY KNOWN AS OTE NOT ONLY IS IT THE BIGGEST STATE OWNED COMPANY BUT IT IS A SYMBOL OF THE OVERALL PRIVATIZATION PROGRAM THE PREVIOUS GOVERNMENT PLANNED TO SELL A THIRTY FIVE PERCENT STAKE IN THE OTE TO A STRATEGIC INVESTOR THE MOST LIKELY CANDIDATE WAS A FOREIGN TELECOMMUNICATIONS COMPANY THAT WOULD HAVE HELPED TO OVERHAUL AND MANAGE THE SYSTEM NOW PASOK PLANS TO SELL THIRTEEN PERCENT AND PERHAPS EVENTUALLY UP TO THIRTY PERCENT OF THE SHARES IN A PUBLIC OFFERING AS FOR PLANS TO PRIVATIZE GREECE'S POWER PLANTS IT IS NOT IN OUR POLICY NATIONAL ECONOMY MINISTER YIANNIS PAPANTONIOU SAYS FLATLY SMALL BUSINESSES ARE WAITING TO SEE WHAT MR. PAPANDREOU DECIDES IN THE END HARRY G. DAVID WHO OWNS PITTA PAN A FAST FOOD SOUVLAKI RESTAURANT WANTS TO EXPAND HIS BUSINESS INTO A NATIONAL CHAIN BUT HE FEARS PASOK MIGHT INCREASE TAXES OR REINTRODUCE PRICE CONTROLS EACH TIME A NEW GOVERNMENT COMES IN IT DISCREDITS EVERYTHING THE PREVIOUS GOVERNMENT HAS DONE MR. DAVID ADDS IF THERE ARE CONTINUING DOUBTS ABOUT MR. PAPANDREOU'S ECONOMIC AGENDA HE HAS LARGELY DEFUSED WORRIES ABOUT FOREIGN POLICY PASOK DID CAUSE A FLAP BACK IN DECEMBER WHEN MR. PANGALOS CALLED GERMANY QUOTE A GIANT WITH BESTIAL FORCE AND A CHILD'S BRAIN QUOTE AND HAD TO APOLOGIZE BUT DIPLOMATS NOW COMPLIMENT MR. PAPANDREOU FOR HIS HANDLING SO FAR OF THE EUROPEAN UNION'S ROTATING SIX MONTH PRESIDENCY MR. PAPANDREOU ALSO HAS MOVED TO REPAIR RELATIONS WITH THE U. S. HIS MEETING WITH PRESIDENT CLINTON IN BRUSSELS LAST MONTH WAS A SUCCESS THE PRESIDENT TOLD MR. PAPANDREOU HE HAD READ THE PAPERS THE PRIME MINISTER WROTE IN THE NINETEEN SIXTIES AS AN ECONOMICS PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY BANC ONE CORPORATION'S AGREEMENT TO ACQUIRE FIRSTIER FINANCIAL INCORPORATED IN A STOCK TRANSACTION FELL APART LARGELY AS A RESULT OF A SLIDE IN BANC ONE'S STOCK THE AGREEMENT COLLAPSED AFTER BANC ONE TURNED DOWN A REQUEST BY FIRSTIER TO INCREASE ITS BID FIRSTIER THE NUMBER TWO BANK IN NEBRASKA HAD WANTED BANC ONE TO BOOST ITS OFFER TO COMPENSATE FOR ITS DEPRESSED STOCK PRICE BANC ONE'S STOCK HAS FALLEN SINCE IT AGREED LAST APRIL TO A ONE FOR ONE STOCK SWAP WHICH AT THE TIME WOULD HAVE RESULTED IN IT PAYING A VALUE OF SEVEN HUNDRED TWELVE MILLION DOLLARS BASED ON THE APPROXIMATELY SIXTY DOLLARS A SHARE PRICE OF ITS STOCK SINCE THEN BANC ONE HAS HAD A FIVE FOR FOUR STOCK SPLIT AND A TEN PERCENT STOCK DIVIDEND FIRSTIER HAD ASKED BANC ONE TO ADJUST ITS OFFER TO EQUAL THE FORTY FOUR DOLLAR AND EIGHTY SIX CENT A SHARE PRICE ADJUSTED FOR THE STOCK SPLIT AND DIVIDEND OR TOTAL VALUE OF FIVE HUNDRED THIRTY FIVE MILLION DOLLARS AT WHICH IT COULD WALK AWAY FROM THE AGREEMENT THE DECISION TO SCUTTLE THE AGREEMENT WAS ANNOUNCED AFTER THE CLOSE OF TRADING BANC ONE CLOSED AT THIRTY TWO DOLLARS AND TWENTY FIVE CENTS DOWN THIRTY SEVEN POINT FIVE CENTS IN TRADING ON THE NEW YORK STOCK EXCHANGE FIRSTIER CLOSED AT FORTY FIVE DOLLARS AND SEVENTY FIVE CENTS DOWN FIFTY CENTS IN NASDAQ STOCK MARKET TRADING MIKE MAYO AN ANALYST WITH U. B. S. SECURITIES INCORPORATED SAID BANC ONE'S STOCK HAS BEEN HURT MORE THAN MOST BANK STOCKS IN THE PAST YEAR QUOTE DUE TO A BELIEF THAT ITS USE OF DERIVATIVES IS EXCESSIVE AND THAT IT WILL NOT BE ABLE TO GROW THROUGH ACQUISITIONS AT THE SAME PACE AS IT HAS IN THE PAST QUOTE JOHN B. MCCOY CHAIRMAN OF BANC ONE WHICH IS BASED IN COLUMBUS OHIO SAID THE COMPANY DIDN'T WANT TO INCREASE ITS BID FOR FIRSTIER BECAUSE WE HAVE A POLICY OF PROTECTING CURRENT BANC ONE SHAREHOLDERS BY NOT ACCEPTING DILUTION IN AN AFFILIATION TRANSACTION SOME ANALYSTS ALSO SAID THE AGREEMENT'S DEMISE SUGGESTS BANC ONE MIGHT HAVE PROBLEMS ACQUIRING OTHER BANKS GIVEN THE STOCK'S POOR PERFORMANCE ACCORDING TO MR. MAYO OF U. B. S. BANC ONE'S STOCK PRICE HAS SLIPPED NINE PERCENT SINCE DECEMBER THIRTY FIRST WHILE COMPARABLE REGIONAL BANKS SAW THEIR STOCK PRICES REMAIN ESSENTIALLY FLAT HOWEVER MR. MAYO WHO RATES BANC ONE STOCK A BUY SAID I DON'T THINK THIS SOUNDS AN ALARM LONG TERM I EXPECT THE STOCK PRICE TO RECOVER AS BANC ONE CONTINUES TO GENERATE EARNINGS WITH OR WITHOUT ACQUISITIONS THE ACQUISITION WAS TO BE BANC ONE'S FIRST FORAY INTO NEBRASKA AND WAS PART OF THE COMPANY'S EFFORT TO BOLSTER ITS HOLDINGS IN THE MIDWEST BANC ONE HAS SEVENTY NINE POINT NINE BILLION DOLLARS IN ASSETS ONE OF FIRSTIER'S LARGEST OWNERS IS OMAHA FINANCIER WARREN BUFFETT'S BERKSHIRE HATHAWAY INCORPORATED WHICH CONTROLS ABOUT FIVE POINT SIX SIX PERCENT OF COMMON STOCK DAVID A. RISMILLER CHAIRMAN OF OMAHA BASED FIRSTIER SAID WE MUST ENSURE FULL ECONOMIC VALUE FOR OUR SHAREHOLDERS MR. RISMILLER ADDED THAT MANAGEMENT AND THE FIRSTIER FINANCIAL BOARD OF DIRECTORS WILL WORK WITH MORGAN STANLEY AND COMPANY TO ASSESS VARIOUS STRATEGIC ALTERNATIVES FOR ENHANCING SHAREHOLDER VALUE INCLUDING POTENTIAL MERGERS AND ACQUISITIONS BANC ONE'S WITHDRAWAL MEANS ANOTHER BANK MIGHT STEP IN TO ACQUIRE FIRSTIER WHICH HAS THREE POINT ONE BILLION DOLLARS IN ASSETS ANALYSTS MENTIONED NORWEST CORPORATION AS A POSSIBLE BIDDER NOTING THAT IT COULD ACHIEVE COST SAVINGS SINCE IT ALREADY HAS A PRESENCE IN NEBRASKA NORWEST WHICH IS BASED IN MINNEAPOLIS HAD NO COMMENT A STUDY OF RESIDENTIAL SEGREGATION IN THE U. S. REPORTS A QUOTE MODEST QUOTE BUT QUOTE PERVASIVE QUOTE TREND TOWARD INTEGRATION WITH CITIES IN THE SOUTH AND WEST HAVING MORE RACIALLY MIXED COMMUNITIES THAN SOME IN THE NORTHEAST AND MIDWEST WHILE THE RESEARCHERS PREDICT THE CONTINUED DECLINE OF RESIDENTIAL SEGREGATION THEY CONCLUDE WHERE THERE IS A HISTORY OF RACIAL ANTAGONISM A RING OF WHITE SUBURBS SURROUNDING A BLACK CENTRAL CITY AND LITTLE NEW HOUSING CONSTRUCTION SEGREGATION IS LIKELY TO PERSIST DESPITE MORE LIBERAL WHITE ATTITUDES AND GOVERNMENT POLICIES THE STUDY DEALT ONLY WITH BLACK WHITE RESIDENTIAL SEGREGATION IN METROPOLITAN AREAS WITH AT LEAST TWENTY THOUSAND BLACKS OR AREAS WHERE BLACKS WERE AT LEAST THREE PERCENT OF THE POPULATION THE CITIES WERE RANKED ON A SCALE FROM ZERO TO ONE HUNDRED WITH ZERO REPRESENTING TOTAL INTEGRATION AND ONE HUNDRED A CITY THAT WAS EITHER ALL BLACK OR ALL WHITE SEVERAL FACTORS SOCIAL ECONOMIC GEOGRAPHIC AND HISTORICAL CONTRIBUTED TO THE DEGREE TO WHICH A CITY WAS SEGREGATED THE RESEARCHERS SAY WITH A DECREASE IN THE NUMBER OF WHITES WHO SUPPORT SEGREGATED HOUSING PLAYING A MAJOR ROLE IN DETROIT IN NINETEEN SEVENTY FOUR ABOUT FORTY ONE PERCENT OF WHITES SAID THEY WOULD LEAVE A NEIGHBORHOOD THAT WAS ONE THIRD BLACK THE RESEARCHERS SAY IN NINETEEN NINETY TWO ONLY TWENTY NINE PERCENT SAID THEY WOULD LEAVE AMONG THE LEAST SEGREGATED CITIES ARE SOME ADJACENT TO MILITARY BASES WHERE HOUSING WAS ASSIGNED RANDOMLY MR. FARLEY SAYS SIZE AND HEALTHY ECONOMIES ALSO MAKE A DIFFERENCE INTEGRATION OCCURS MORE EASILY IN SMALL TO MIDSIZE COMMUNITIES PLACES WHERE THE INCOME OF BLACKS APPROXIMATED THAT OF WHITES ARE LESS SEGREGATED AND THE PRESENCE OF ASIANS AND HISPANICS MITIGATES DISCRIMINATION AGAINST BLACKS SEGREGATION ALSO SEEMS LOW IN UNIVERSITY TOWNS AND STATE CAPITALS WHERE RESEARCHERS SAY A LINK CAN BE DRAWN BETWEEN MORE TOLERANT ATTITUDES AND MORE EDUCATION GOVERNMENT EMPLOYEES LIVING IN STATE CAPITALS ARE THOUGHT TO BE MORE FAMILIAR WITH AND OBSERVANT OF FAIR HOUSING LAWS COMMUNITIES WITH A LOT OF HOUSING BUILT AFTER PASSAGE OF THE FAIR HOUSING ACT OF NINETEEN SIXTY EIGHT ALSO TEND TO BE MORE OPEN THAN THOSE WITH NEIGHBORHOODS THAT MIGHT HAVE AT ONE TIME BEEN SUBJECT TO RESTRICTIVE WHITES ONLY DEEDS AND FEDERALLY SUPPORTED RED LINING THE STUDY SAID THE RESEARCHERS ALSO FOUND THAT UNLIKE THE NORTHEAST AND MIDWEST WHERE LOCAL TOWNS AND SUBURBS HAD A GREAT DEAL OF AUTONOMY AND USED IT TO EXCLUDE BLACKS POWER IN THE SOUTH WAS VESTED IN COUNTY WIDE GOVERNMENTS SUBJECT TO STATE CONTROL AS A RESULT THEY SAY WHITE FLIGHT SUBURBS DIDN'T SPROUT UP IN THE SOUTH AS THEY DID IN THE NORTH AFTER COURTS ORDERED SCHOOLS DESEGREGATED SOUTHERN WHITES HAD NO PLACE TO FLEE THEY SAID REORGANIZATION SONY CORPORATION'S SONY PICTURES ENTERTAINMENT TELEVISION GROUP REORGANIZED ITS T. V. PRODUCTION OPERATIONS CREATING A NEW UNIT COLUMBIA TRISTAR TELEVISION IT WILL BE HEADED BY JON FELTHEIMER FORTY TWO WHO WAS NAMED PRESIDENT AND ANDREW J. KAPLAN THIRTY THREE SENIOR EXECUTIVE VICE PRESIDENT WHO WAS FORMERLY EXECUTIVE VICE PRESIDENT OF THE S. P. E. TELEVISION GROUP FIVE PREVIOUSLY AUTONOMOUS OPERATIONS WILL BE CONSOLIDATED WITHIN THE NEW UNIT MERV GRIFFIN ENTERPRISES INTERNATIONAL PRODUCTIONS INTERACTIVE TELEVISION OPERATIONS TRISTAR TELEVISION WHICH MR. FELTHEIMER PREVIOUSLY HEADED AND COLUMBIA PICTURES TELEVISION WHOSE PRESIDENT SCOTT SIEGLER IS LEAVING AUSTRALIA'S GOVERNMENT OWNED TELECOMMUNICATIONS CONCERN TELSTRA CORPORATION IS CONSIDERING SCALING BACK ITS COMMITMENT TO PROVIDE LOCAL TELEPHONE SERVICE IN HONG KONG ACCORDING TO A TELSTRA OFFICIAL THE COMPANY IS REVIEWING ITS CURRENT AGREEMENT WITH HUTCHISON WHAMPOA LIMITED THAT CALLS FOR TELSTRA TO TAKE A TWENTY PERCENT STAKE IN A NEW TELEPHONE NETWORK SERVING BUSINESS COMMUNITIES ON HONG KONG ISLAND AND THE KOWLOON PENINSULA THE NETWORK IS EXPECTED TO COST H. K. THREE POINT FIVE BILLION DOLLARS FOUR HUNDRED FIFTY MILLION U. S. DOLLARS TELSTRA AND HUTCHISON ARE NOW QUOTE REFINING QUOTE THEIR ACCORD THE TELSTRA OFFICIAL SAID ADDING THAT QUOTE IT'S TOO EARLY TO SAY WHAT THE OUTCOME WILL BE QUOTE HUTCHISON DECLINED TO COMMENT INDUSTRY EXECUTIVES FAMILIAR WITH THE NEGOTIATIONS SAY TELSTRA MAY DROP ITS EQUITY PARTICIPATION OPTING INSTEAD TO BE A STRATEGIC PARTNER PROVIDING THE EXPERTISE AND TECHNOLOGY BUT NOT THE CASH THE TELSTRA HUTCHISON PARTNERSHIP WAS ONE OF THREE GROUPS CHOSEN LAST YEAR BY THE HONG KONG GOVERNMENT TO PROVIDE LOCAL FIXED LINE TELEPHONE SERVICES AFTER HONG KONG TELECOMMUNICATIONS LIMITED'S EXCLUSIVE FRANCHISE EXPIRES IN JULY NINETEEN NINETY FIVE DUFF AND PHELPS CORPORATION SAID IT PLANS TO SPIN OFF ITS CREDIT RATING OPERATION TO SHAREHOLDERS A MOVE THAT WOULD FREE IT FROM CONFLICT OF INTEREST CONCERNS THAT HAVE RESTRICTED THE PARENT COMPANY FROM MANAGING OPEN END MUTUAL FUNDS ALTHOUGH DUFF AND PHELPS IS BEST KNOWN FOR ITS CREDIT RATING OPERATION THE COMPANY'S LARGEST AND MOST PROFITABLE SEGMENT IS ITS INVESTMENT MANAGEMENT BUSINESS WHICH LAST YEAR GENERATED ABOUT FORTY EIGHT PERCENT OF ITS REVENUE AND MORE THAN HALF ITS EARNINGS THE CREDIT RATING OPERATION PRODUCED ABOUT ONE THIRD OF THE COMPANY'S NINETEEN NINETY THREE REVENUE OF ONE HUNDRED ONE MILLION DOLLARS DUFF AND PHELPS SAID AND AN OFFICIAL SAID THAT ITS OPERATING PROFIT WAS ABOUT PROPORTIONAL THE PARENT HAD NET INCOME FOR THE YEAR OF TWENTY THREE POINT ONE MILLION DOLLARS OR ONE DOLLAR AND THIRTY CENTS A SHARE THE MANAGEMENT BUSINESS OPERATES THREE CLOSED END UTILITY FUNDS AND ALSO MANAGES FUNDS ON BEHALF OF PENSIONS AND OTHER INSTITUTIONAL INVESTORS ASSETS UNDER DISCRETIONARY MANAGEMENT AT THE END OF LAST YEAR TOTALED JUST UNDER TWENTY BILLION DOLLARS COMPARED WITH A YEAR EARLIER SIXTEEN POINT FIVE BILLION DOLLARS A DECADE AGO DUFF AND PHELPS AGREED TO BE ACQUIRED BY THE BANK HOLDING COMPANY THEN KNOWN AS SECURITY PACIFIC CORPORATION BUT THE LOS ANGELES CONCERN CALLED OFF THE DEAL BECAUSE OF RESTRAINTS THE FEDERAL RESERVE BOARD PUT ON THE TRANSACTION THE FED APPROVED THE TRANSACTION BUT CONDITIONED IT ON DUFF AND PHELPS'S NO LONGER ISSUING PUBLIC CREDIT RATINGS CONTENDING SUCH RATING ACTIVITY REPRESENTED A POSSIBLE CONFLICT OF INTEREST WITH CERTAIN BANKING ACTIVITIES FRANCIS E. JEFFRIES DUFF AND PHELPS'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY IN AN INTERVIEW THAT MUTUAL FUNDS QUOTE HAVE BANKING POWERS FOR THE MANAGEMENT OF MONEY MARKET FUNDS BECAUSE OF THE CHECK WRITING PRIVILEGES IF WE WERE TO SET UP A FAMILY OF OPEN END FUNDS HE SAID WE WOULD WANT A SIMILAR TYPE OF ARRANGEMENT A CLOSED END MUTUAL FUND ISSUES A SET NUMBER OF SHARES UNLIKE AN OPEN END FUND WHICH CREATES AND REDEEMS SHARES IN RESPONSE TO INVESTOR DEMAND THE INVESTMENT MANAGEMENT COMPANY HASN'T BEEN HINDERED IN OPERATING ITS CLOSED END FUNDS OR ITS OTHER CURRENT BUSINESSES HE NOTED BUT ITS FLEXIBILITY HAS BEEN HAMPERED BECAUSE IT CAN'T HAVE BANK POWERS AS LONG AS THE CREDIT RATING BUSINESS IS ATTACHED TO THE COMPANY BUT DUFF AND PHELPS NOTED YESTERDAY IN A NEWS RELEASE THAT AFTER THE SPINOFF IT WOULD BE ABLE TO EXPLORE RELATIONSHIPS WITH BANKS REGARDING THE MANAGEMENT OF MUTUAL FUNDS AND OTHER INVESTMENT PRODUCTS THE COMPANY ALSO SAID IT MIGHT CONSIDER IN THE FUTURE AFFILIATING WITH A BROKER DEALER SAYING IT WOULD HAVE A BENEFICIAL EFFECT ON THE MARKETING AND DISTRIBUTION OF OPEN END FUNDS AND INVESTMENT RESEARCH PRODUCTS SUCH ARRANGEMENTS ARE ALSO SUBJECT TO POTENTIAL CONFLICTS OF INTEREST WITH CREDIT RATING SERVICES HOWEVER MR. JEFFRIES SAID THAT ONCE THE SPINOFF IS COMPLETE THE COMPANY WOULD ALSO BE FREE TO ESTABLISH OURSELF AS BROKER DEALER CONVERSELY HE NOTED THE CREDIT RATING BUSINESS WOULD LIKE TO GET INTO THE AREA OF RATING MUTUAL FUNDS BUT WOULD LIKELY BE CONSTRAINED FROM DOING SO BY CONFLICT OF INTEREST CONCERNS IF IT WERE ASSOCIATED WITH DUFF AND PHELPS AND THE PARENT WAS MANAGING MUTUAL FUNDS BESIDES THE INVESTMENT MANAGEMENT COMPANY THE PLANNED TAX FREE SPINOFF WOULD LEAVE DUFF AND PHELPS WITH AN INVESTMENT RESEARCH OPERATION AND A SERVICE THAT PROVIDES CONSULTING AND VALUATION SERVICES AOKI CORPORATION OF JAPAN SAID IT TENTATIVELY AGREED TO SELL MOST OF ITS WESTIN HOTELS AND RESORTS CHAIN TO A GROUP OF INVESTORS HEADED BY BERNARDO DOMINGUEZ A MEXICAN ENTREPRENEUR FOR SEVEN HUNDRED EIGHT MILLION DOLLARS UNDER A LETTER OF INTENT THE DOMINGUEZ GROUP WILL BUY WESTIN OPERATIONS IN NORTH AMERICA SOUTH AMERICA AND EUROPE THESE INCLUDE FIFTY TWO MANAGED HOTELS TEN OF WHICH ARE MAJORITY OR WHOLLY OWNED BY WESTIN THE SEATTLE BASED CHAIN OPERATES SEVENTY THREE HOTELS IN SIXTEEN COUNTRIES WITH THIRTY SIX THOUSAND EIGHT HUNDRED ROOMS QUOTE THE TRANSACTION WILL INCLUDE A COMBINATION OF MORTGAGE DEBT BANK FINANCING AND MEXICAN EQUITY QUOTE SAID CHINH CHU A VICE PRESIDENT WITH THE BLACKSTONE GROUP WHICH IS REPRESENTING AOKI THE TRANSACTION IS EXPECTED TO BE COMPLETED BY JUNE INVESTMENT BANKERS AT SALOMON BROTHERS REPRESENTING MR. DOMINGUEZ COULDN'T BE REACHED FOR COMMENT MR. DOMINGUEZ EXECUTIVE CHAIRMAN OF D. S. C. S. A. DE C. V. COULDN'T BE REACHED FOR COMMENT D. S. C. S. A. IS A CLOSELY HELD CONSTRUCTION CONCERN BASED IN THE NORTHERN MEXICAN STATE OF CHIHUAHUA WITH INTERESTS IN REAL ESTATE CONSTRUCTION RETAIL AND TOURISM AND OPERATES A CHAIN OF MEXICAN HOTELS THAT OPERATES UNDER THE NAME QUALTON HOTELS MR. DOMINGUEZ IS ALSO INVOLVED WITH THE MEXICAN GOVERNMENT IN A PROPOSED SIX HUNDRED MILLION DOLLARS HOTEL RESTAURANT AND OFFICE DEVELOPMENT IN THE RESORT CITY OF CANCUN WESTIN A HIGHER END FULL SERVICE HOTEL CHAIN HAD BEEN MARKETED AGGRESSIVELY TO PROSPECTIVE BUYERS OVER THE PAST YEAR AND HAD ATTRACTED A HOST OF FINANCIAL AND STRATEGIC BIDDERS INTERESTED IN RESTORING ITS LUSTRE THE DOMINGUEZ OFFER HAD SURFACED LATE IN THE BIDDING PROCESS WHICH IN THE EARLY STAGES HAD ATTRACTED MORE THAN TWENTY INTERESTED PARTIES PEOPLR FAMILIAR WITH THE TALKS SAID PAUL WACHTER MANAGING DIRECTOR FOR WERTHEIM SCHRODER AND COMPANY'S LODGING AND GAMING PRACTICE IN LOS ANGELES SAID THAT ALTHOUGH IT WAS DIFFICULT TO EVALUATE THE DEAL WITHOUT MORE DETAILED INFORMATION THE PURCHASE PRICE SEEMED HIGH ESPECIALLY CONSIDERING THAT MUCH OF THE VALUE IS IN MANAGEMENT CONTRACTS RATHER THAN REAL ESTATE AOKI BOUGHT WESTIN FOR ONE POINT FIVE THREE BILLION DOLLARS IN NINETEEN EIGHTY EIGHT FROM ALLEGIS CORPORATION THEN THE PARENT OF UNITED AIRLINES AOKI AND A GROUP OF INVESTORS THAT INCLUDED BILLIONAIRE INVESTOR ROBERT BASS QUICKLY SOLD THE WESTIN MAUNA KEA IN HAWAII AND THE PLAZA IN NEW YORK FOR ABOUT SEVEN HUNDRED THIRTY FIVE MILLION DOLLARS BUT THE CHAIN HADN'T BEEN AGGRESSIVELY DEVELOPED UNDER AOKI'S OWNERSHIP AND HAS SUFFERED ALONG WITH THE REST OF THE HOTEL INDUSTRY FROM A PROLONGED DOWNTURN AOKI CORPORATION A JAPANESE CONSTRUCTION COMPANY HEADED BY INVESTOR HIROYOSHI AOKI WAS SAID TO BE UNDER PRESSURE FROM ITS BANKERS TO SELL PART OR ALL OF THE CHAIN AOKI CONTINUES TO OWN THE CAESAR PARK HOTEL CHAIN AND OTHER INDEPENDENT HOTELS ROGER CLINE WORLD WIDE DIRECTOR OF HOSPITALITY CONSULTING SERVICES FOR ARTHUR ANDERSEN AND COMPANY SAID THE WESTIN BRAND STILL HAS A GOOD REPUTATION BUT WOULD REQUIRE MORE EXPANSION TO GAIN A PROFILE AS A TRULY NATIONAL BRAND HE NOTED THAT WESTIN MIGHT BENEFIT FROM FURTHER CONSOLIDATION IN THE HOTEL INDUSTRY BY PURCHASING ANOTHER SMALLER CHAIN ECONOMIC REFORMS IN CHINA ARE NOURISHING CHINA'S FLEDGLING HIGH TECHNOLOGY INDUSTRY AND SPAWNING A WAVE OF ENTREPRENEURIAL TALENT UNIVERSITY GRADUATES AND PROFESSORS ARE HATCHING COMPANIES OF THEIR OWN OFTEN IN THE BACK STREETS OF ZHONGGUANCUN AN AREA NEAR BEIJING UNIVERSITY SILICON ALLEYS IN EFFECT IN A RECENT ARTICLE IN CHINA'S OFFICIAL PRESS YANG DAKAN OF THE STATE PLANNING COMMISSION'S ECONOMIC RESEARCH INSTITUTE PREDICTED THAT THE NUMBER OF SELF EMPLOYMENT ENTERPRISES WITH FEWER THAN EIGHT EMPLOYEES WILL SOAR THIS YEAR TO NINETEEN MILLION AND WILL EMPLOY THIRTY TWO MILLION WORKERS UP TWELVE PERCENT FROM NINETEEN NINETY THREE SALES COULD TOP TWENTY THREE BILLION DOLLARS MOST OF CHINA'S COTTAGE INDUSTRIES ARE IN BASIC INDUSTRIES BUT HIGH TECH COMPANIES ARE MULTIPLYING MR. YANG WROTE QUOTE THE BUSINESS HAS MUSHROOMED QUOTE SAYS MICHAEL L. Y. NG DEPUTY GENERAL MANAGER OF LEGEND HOLDINGS LIMITED ONE OF THE MOST SUCCESSFUL COMPUTER COMPANIES OPERATING IN CHINA TODAY LEGEND A SIX YEAR OLD JOINT VENTURE BETWEEN A HONG KONG COMPANY AND ACADEMIA SINICA THE CHINESE ACADEMY OF SCIENCES SELLS ITS OWN BRAND OF COMPUTERS IN CHINA AS WELL AS PRODUCTS FROM A. S. T. RESEARCH INCORPORATED INTERNATIONAL BUSINESS MACHINES CORPORATION APPLE COMPUTER INCORPORATED SUN MICROSYSTEMS INCORPORATED AND INTEL CORPORATION LEGEND'S SALES IN THE YEAR ENDED MARCH THIRTY FIRST NINETEEN NINETY THREE TOTALED ONE POINT EIGHT BILLION HONG KONG DOLLARS TWO HUNDRED THIRTY TWO POINT TWO MILLION DOLLARS PRODUCING A PROFIT OF H. K. TWENTY SIX POINT FOUR MILLION DOLLARS THE COMPANY EXPECTS PROFIT TO MORE THAN DOUBLE IN THE CURRENT YEAR LIKE OTHER UPSTART TECHNOLOGY COMPANIES LEGEND HAS HIRED DOZENS OF HIGHLY TRAINED ALTHOUGH INEXPENSIVE BECAUSE OF CHINA'S LOW WAGE SCALES ENGINEERS TO HELP IT COOK UP NEW APPLICATIONS FOR ITS PRODUCTS IN A MARKETING EFFORT LEGEND STAGES DEMONSTRATIONS AT UNIVERSITIES AND EVEN PRODUCES ACADEMIC PAPERS ON THE CAPABILITIES OF THE MACHINES IT SELLS RIVALS APPARENTLY KNOW THE ROUTINE TOO COMPAQ COMPUTER CORPORATION OF THE U. S. HAS ANTED UP ONE MILLION DOLLARS FOR A RESEARCH CENTER IN BEIJING THE BIGGEST COMPETITIVE CHALLENGE LEGEND FACES IS THE PRESENCE OF STATE OWNED COMPUTER COMPANIES IN PARTICULAR GREAT WALL COMPUTER COMPANY THE BIGGEST MAKER OF OWN BRAND COMPUTERS IN CHINA WHICH LEGEND SAYS WINS MANY ORDERS BECAUSE OF ITS TIES TO THE GOVERNMENT ALTHOUGH CHINA'S ELECTRONICS PRODUCTION EVERYTHING FROM LIGHT BULBS TO STATE MADE MILKY WAY MAINFRAME COMPUTERS LAST YEAR REACHED NEARLY FIFTEEN BILLION DOLLARS THE STATE IS INFUSING ONLY ONE POINT FIVE BILLION DOLLARS IN NEW EQUIPMENT AND RESEARCH DURING THE CURRENT FIVE YEAR PLAN WHICH ENDS IN NINETEEN NINETY FIVE THAT LEAVES A YAWNING CAPITAL GAP AND A MARKET THAT ENTREPRENEURS AND UPSTART HIGH TECH COMPANIES ARE RUSHING TO FILL CHINA'S MARKET FOR PERSONAL COMPUTERS HAS BEEN GROWING AT LEAST TWENTY FIVE PERCENT IN EACH OF THE LAST FIVE YEARS AND THE PACE IS ACCELERATING IN NINETEEN NINETY TWO ABOUT TWO HUNDRED THOUSAND PERSONAL COMPUTERS WERE SOLD IN CHINA IN NINETEEN NINETY THREE ACCORDING TO A PRELIMINARY GOVERNMENT ESTIMATE THE NUMBER WAS THREE HUNDRED FIFTY THOUSAND OFFICIALS EXPECT DEMAND TO REACH AT LEAST ONE MILLION P. C.S BY THE YEAR TWO THOUSAND NOW EVEN MORE POWERFUL COMPUTERS ARE CATCHING ON N. E. C. CORPORATION THE JAPANESE COMPUTER MAKER SAID FEBRUARY TENTH THAT IT'S CONSIDERING PRODUCING SMALL COMPUTER WORKSTATIONS IN CHINA IT HOPES TO CONCLUDE A FEASIBILITY STUDY BY THE END OF THIS YEAR MEANWHILE SMALLER CHINESE COMPANIES ARE CROPPING UP EVERY DAY PROVIDING SPECIALIZED SOFTWARE AND APPLICATIONS SOME SIMPLY DREAM UP SOFTWARE FOR WHAT ENGINEERS HERE DUB HANZIFICATION ENABLING PERSONAL COMPUTERS TO WRITE AND READ CHINESE CHARACTERS OR HANZI WANG YONGMIN A FIFTY FIVE YEAR OLD CHINESE ENTREPRENEUR PIONEERED THE FIELD IN THE NINETEEN EIGHTIES CASIO COMPUTER COMPANY OF JAPAN LAST YEAR SIGNED A PATENT TRANSFER WITH MR. WANG'S COMPANY WANGMA COMPUTERS CORPORATION TO USE HIS HANZIFICATION SYSTEM DIGITAL EQUIPMENT CORPORATION ALSO HAS AN ARRANGEMENT TO USE WANGMA'S SOFTWARE AT RALPH MA'S COMPANY BEIJING SUN STEP ELECTRONICS TECHNOLOGY COMPANY ON THE OUTSKIRTS OF BEIJING THIRTY RECENT UNIVERSITY GRADUATES IN SWEATERS AND JEANS DESIGN PRODUCE AND MARKET COMPUTER ADD ON BOARDS THAT ENHANCE THE QUALITY OF THE GRAPHICS A MONITOR CAN SHOW BIG CLIENTS INCLUDE AIR TRAFFIC CONTROL OFFICES AND COMPUTER AIDED DESIGN OR MAPPING COMPANIES AND IT EXPORTS SOME COMPONENTS SALES LAST YEAR WERE ALMOST THREE MILLION DOLLARS ON THE BACK OF MR. MA'S BUSINESS CARD ARE TWO WORDS BEIJING BASTARDS THAT'S THE TITLE OF A CONTROVERSIAL MOVIE HE IS MARKETING AND A TICKET HE HOPES TO A MULTIMEDIA FUTURE MR. MA WHO ALSO MANAGES CHINA'S HOTTEST ROCK STAR CUI JIAN FIGURES IF HE CAN JUST FIND A WAY TO LINK HIS BUDDING ENTERTAINMENT EMPIRE TO HIS MAIN BUSINESS DESIGNING PERSONAL COMPUTER SOFTWARE AND ENHANCED GRAPHICS BOARDS HIS PROSPECTS ARE LIMITLESS ONE IDEA CREATING SOFTWARE TO FEED MOVIES DIGITALLY TO CABLE T. V. SUBSCRIBERS TOLD THAT HUGE U. S. COMPANIES ARE BATTLING TO DO THE SAME THING MR. MA TAKES A PENSIVE DRAG ON A MARLBORO PAUSES AND SAYS YES WE HAVE HEARD OF THAT WE WANT TO MAKE FULL USE OF THE INDUSTRY TRENDS MR. MA IS FOND OF AMERICAN GLITZ AND THAT'S WHAT SPARKED THE DEVELOPMENT OF HIS ENTERTAINMENT BUSINESS HE'S NOW TRYING TO MARKET THE CRITICALLY ACCLAIMED THOUGH OFFICIALLY CONDEMNED UNDERGROUND FILM BEIJING BASTARDS WHICH MR. MA DESCIBES AS A VERY DRUGGY DEPICTION OF YOUNG REBELLIOUS CHINESE MUSICIANS WE WANT TO BE HUGE ON THE ENTERTAINMENT SIDE AND THEN WE WILL USE THIS TECHNOLOGY TO SELL WHAT CHINA HAS TO THE REST OF THE WORLD MR. MA SAYS ONE OF HIS SOFTWARE ENGINEERS TWENTY SIX YEAR OLD WANG LING IS ENTHUSIASTIC AT THE PROSPECT QUOTE MULTIMEDIA IS VERY POPULAR IN CHINA IT'S TALKED ABOUT EVERYWHERE ARCH PETROLEUM INCORPORATED SAID IT AGREED TO PAY CHEVRON U. S. A. INCORPORATED TWENTY MILLION DOLLARS FOR OIL AND GAS PROPERTIES ARCH BASED IN FORT WORTH TEXAS SAID THE LEA COUNTY NEW MEXICO PROPERTIES INCLUDE INTERESTS IN ABOUT ONE HUNDRED THIRTY PRODUCING OIL AND GAS WELLS WITH AVERAGE DAILY PRODUCTION TOTALING ABOUT NINE HUNDRED BARRELS OF OIL AND SIX POINT FIVE MILLION CUBIC FEET OF NATURAL GAS THE OIL AND NATURAL GAS COMPANY SAID THE CLOSING IS SET FOR MARCH THIRTY FIRST AND ARCH WILL ASSUME OPERATION OF THE PROPERTIES APRIL FIRST CHEVRON U. S. A. IS UNIT OF OIL AND NATURAL GAS CONCERN CHEVRON CORPORATION SAN FRANCISCO IN A STATEMENT LARRY KALAS PRESIDENT OF ARCH SAID THE PROPERTIES REPRESENT A STRATEGIC ADDITION TO ARCH'S STRONG RESERVE BASE IN THE PERMIAN BASIN MR. KALAS ALSO SAID CURRENT PRODUCTION WILL POSITIVELY AFFECT THE COMPANY'S REVENUE CASH FLOW AND EARNINGS CHRYSLER CORPORATION ANNOUNCED A RECALL OF ONE HUNDRED TEN THOUSAND NINETEEN NINETY FOUR DODGE INTREPIDS EAGLE VISIONS AND CHRYSLER CONCORDES NEW YORKERS AND L. H. S.S BECAUSE OF AN ELECTRICAL PROBLEM CHRYSLER IS RECALLING SEDANS BUILT BETWEEN LATE JULY AND EARLY DECEMBER NINETEEN NINETY THREE A TRANSMISSION WIRING FLAW COULD STOP THE VEHICLES FROM STARTING CAUSE LIGHTS TO MALFUNCTION OR CAUSE A SEDAN TO OPERATE ONLY IN SECOND GEAR A SPOKESMAN SAID THE HIGHLAND PARK MICHIGAN AUTO MAKER IS REPAIRING THE PROBLEM BY REROUTING THE WIRES AND PROTECTING THEM FROM A STEERING ROD WHICH BY RUBBING AGAINST THE WIRES CAN SHORT OUT THE SYSTEM TOKYO STOCKS TUMBLED TWO POINT SEVEN PERCENT MONDAY AFTER THE FAILURE OF THE U. S. JAPAN TRADE SUMMIT SENT THE YEN ROCKETING UPWARD AND A FURTHER THREE POINT ONE PERCENT TUESDAY MORNING MANY OTHER ASIAN STOCK MARKETS ALSO SLUMPED ON MONDAY WITH HONG KONG AND TAIPEI EACH PLUNGING FOUR POINT FIVE PERCENT LONDON SHARES FELL BUT ENDED ABOVE THE DAY'S LOWS IN LIFELESS TRADING IN FRANKFURT PRICES ROSE ONE POINT TWO PERCENT ON HOPES FOR A GERMAN INTEREST RATE EASING THIS WEEK WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED SIXTEEN POINT NINE TWO UP ZERO POINT NINE ZERO REFLECTING HIGHER EUROPEAN AND ASIA SLASH PACIFIC MARKETS AND LOWER AMERICAN MARKETS TRUCKING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED TWENTY SIX POINT THREE FIVE UP THREE POINT TWO THREE OR TWO POINT SIX PERCENT WITH TRIMAC OF CANADA POSTING A ONE POINT SIX PERCENT GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT TWO HUNDRED EIGHTEEN POINT NINE ONE DOWN FOUR POINT NINE NINE OR TWO POINT TWO PERCENT WITH DUNLOP OF MALAYSIA SLIDING SEVEN POINT THREE PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH ROSE ONE HUNDRED FORTY NINE POINT THREE TWO POINTS THURSDAY SLUMPED FIVE HUNDRED THIRTY ONE POINT FOUR FIVE MONDAY ITS SECOND BIGGEST FALL THIS YEAR TO NINETEEN THOUSAND FOUR HUNDRED FIFTY NINE POINT TWO FIVE THE MARKET WAS CLOSED FRIDAY FOR A NATIONAL HOLIDAY MONDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT THREE HUNDRED MILLION SHARES DOWN FROM THREE HUNDRED FIFTY NINE POINT FIVE MILLION SHARES IN THE PREVIOUS SESSION DECLINING ISSUES SWAMPED GAINERS NINE HUNDRED THIRTY FOUR TO ONE HUNDRED FIFTY FIVE THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH ROSE TEN POINT ONE TWO POINTS THURSDAY SKIDDED TWENTY SIX POINT ONE SIX OR ONE POINT SIX PERCENT TO ONE THOUSAND FIVE HUNDRED EIGHTY ONE POINT NINE EIGHT AT THE CLOSE OF TRADING TUESDAY MORNING THE AVERAGE HAD PLUMMETED A FURTHER SIX HUNDRED TWELVE POINT OH SEVEN POINTS TO EIGHTEEN THOUSAND EIGHT HUNDRED FORTY SEVEN POINT ONE EIGHT THE YEN'S STEEP GAINS FOLLOWED LAST WEEK'S NEWS THAT THE U. S. AND JAPAN BROKE OFF THEIR SO CALLED FRAMEWORK TALKS TO IMPROVE BILATERAL TRADE LEAVING THE TOKYO MARKET DEEPLY PESSIMISTIC THE YEN WAS DRIVEN UP BY SPECULATION IN THE FOREIGN EXCHANGE MARKET THAT THE CLINTON ADMINISTRATION WILL TRY TO BOOST THE JAPANESE CURRENCY TO MAKE JAPAN'S EXPORTS RELATIVELY MORE EXPENSIVE INVESTORS ON THE STOCK MARKET ALSO WERE WORRIED ABOUT POSSIBLE U. S. TRADE SANCTIONS AGAINST JAPAN WHICH COULD HURT ITS EXPORTERS IN LONDON MONDAY THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED STOCK INDEX DROPPED FIFTEEN POINT FOUR POINTS TO THREE THOUSAND THREE HUNDRED SIXTY THREE POINT FIVE UP FROM THE SESSION'S TROUGH OF THREE THOUSAND THREE HUNDRED FIFTY POINT TWO THE F. T. THIRTY STOCK INDEX DECLINED EIGHT POINT SIX POINTS TO TWO THOUSAND FIVE HUNDRED EIGHTY SIX POINT SEVEN VOLUME WAS SIX HUNDRED SIXTEEN POINT NINE MILLION SHARES COMPARED WITH ONE BILLION SHARES IN THE PREVIOUS SESSION THE MARKET WAS STAGNANT FOLLOWING LAST WEEK'S VOLATILITY WHICH LEFT INVESTORS WARY THE EXCHANGE ALSO WAS ON HOLD PENDING THIS WEEK'S RELEASE OF SEVERAL REPORTS ON BRITAIN'S ECONOMY WHICH WILL PROVIDE A CLEARER PICTURE FOR MAKING DECISIONS ON STOCKS LOSSES IN TOKYO AND OTHER ASIAN BOURSES ALSO PRESSURED THE LONDON MARKET MINDFUL OF BRITISH CORPORATE EARNINGS REPORTS TO START IN A FEW WEEKS IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX CLIMBED TWENTY FIVE POINT FOUR OH POINTS TO TWO THOUSAND ONE HUNDRED SIXTEEN POINT OH ONE THOUGH DEALINGS WERE QUIET THE INDEX LAST WEEK LOST A TOTAL OF TWENTY EIGHT POINT THREE FIVE POINTS INVESTORS' HOPES SWELLED FOR A REDUCTION IN KEY INTEREST RATES WHEN THE GERMAN BUNDESBANK'S POLICYSETTING CENTRAL BANK COUNCIL MEETS THURSDAY THE CENTRAL BANK LAST CUT RATES OCTOBER TWENTY FIRST THE HOPES WERE RAISED BY POOR UNEMPLOYMENT DATA AND RELATIVELY GOOD INFLATION FIGURES FOR GERMANY THE MARKET WASN'T MUCH AFFECTED BY THE BREAKDOWN OF CONTRACT NEGOTIATIONS LATE FRIDAY BETWEEN INDUSTRIAL EMPLOYERS AND THE METAL WORKERS UNION IN PARIS THE MARKET SANK ONE POINT FOUR PERCENT IN THIN TRADING MARKED BY AN ABSENCE OF NEWS TO STIR INVESTORS WHO ALSO WERE DETERRED BY AN UNUSUAL COLD SPELL AND SNOWFALL IN THE FRENCH CAPITAL DESPITE THE MAIN INDEX'S SHARP DECLINE SELLING WASN'T HEAVY THOUGH THE MARKET HAD NAGGING DOUBTS ABOUT WHETHER GERMANY WILL LOWER RATES THIS WEEK IN AMSTERDAM SHARES ENDED BROADLY LOWER DRIVEN DOWN BY PROFIT TAKING AMID LACKLUSTER TURNOVER OTHER MARKETS' DECLINES AND A SLIGHTLY LOWER DOLLAR IN FOREIGN EXCHANGE DEALINGS PRESSURED STOCKS AND THINNED ACTIVITY IN MILAN PROFIT TAKING PULLED SHARE PRICES DOWN ON THE FIRST DAY OF THE MARCH TRADING ACCOUNT AND THE INDEX THAT INCLUDES ISSUES TRADED ELECTRONICALLY LOST ONE POINT ONE PERCENT IN WHAT WAS TERMED A HEALTHY CORRECTION IN MADRID STOCKS SLUMPED BECAUSE OF A GLOOMY ECONOMIC OUTLOOK FOR SPAIN BASED ON DATA SHOWING RISING UNEMPLOYMENT WORSE THAN EXPECTED JANUARY INFLATION AND LITTLE LIKELIHOOD FOR SPANISH RATE REDUCTIONS SOON IN STOCKHOLM SHARES ADVANCED BUT CLOSED BELOW THE DAY'S HIGHS AS THE MARKET LOST STEAM PARTLY BECAUSE OF THE ABSENCE OF FOREIGN BUYERS THE GAINS CAME ON CORPORATE NEWS AND DECLINING SWEDISH LENDING RATES IN ZURICH STOCKS SANK ONE POINT THREE PERCENT BUT DEALINGS WERE EXTREMELY QUIET IN THE ABSENCE OF FRESH NEWS IN HONG KONG DASHING HOPES FOR THE TRADITIONAL RALLY FOLLOWING THE CHINESE NEW YEAR CELEBRATIONS THE HANG SENG INDEX PLUMMETED FIVE HUNDRED FIFTEEN POINT TWO TWO POINTS THE FIFTH BIGGEST DROP EVER IN TERMS OF POINTS TO TEN THOUSAND NINE HUNDRED EIGHTY EIGHT POINT EIGHT ONE STOCKS OPENED LOWER BECAUSE OF WEAKNESS IN OTHER MARKETS DURING THE HONG KONG BOURSE'S HOLIDAY BREAK AND LOSSES CONTINUED THROUGHOUT THE SESSION LED BY HANG SENG FUTURES CONTRACTS FOREIGN INVESTORS CONTINUED THEIR RECENT PATTERN OF SELLING BUT LOCAL RETAIL BUYERS DIDN'T APPEAR AS A BUFFER INCLUDING MONDAY'S DROP THREE OF THE BLUE CHIP INDEX'S FOUR BIGGEST DECLINES OCCURRED THIS YEAR BUT IN PERCENTAGE TERMS MONDAY'S LOSS DIDN'T APPROACH SEVERAL DOUBLE DIGIT PLUNGES IN THE PAST TWO DECADES IN SYDNEY THE BENCHMARK INDEX SLIPPED AND SHARE PRICES MOSTLY LOST GROUND BUT ENDED UP FROM THEIR LOWS FOR THE SESSION THE FINISH CONTINUED THE TREND FROM LAST WEEK WHEN THE MARKET FELL THREE POINT NINE PERCENT STOCKS OPENED WEAKER ON EXPECTATIONS OF SELL OFFS IN TOKYO AND HONG KONG THOSE DOWNTURNS WEREN'T AS LARGE AS EXPECTED BUT SYDNEY INVESTORS ALSO WERE CONCERNED ABOUT A TRADE IMPASSE BETWEEN JAPAN AND THE U. S. IN SINGAPORE SHARES ENDED SOLIDLY LOWER IN QUIET DEALINGS AS SENTIMENT WAS SUBDUED FOLLOWING A FOUR DAY BREAK TO CELEBRATE THE LUNAR NEW YEAR IN KUALA LUMPUR WHICH ALSO HAD A LONG HOLIDAY CLOSING THE MARKET LOST ONE POINT FOUR PERCENT IN MODERATE TRADING PRICES OPENED HIGHER BUT QUICKLY SOFTENED BECAUSE OF PROFIT TAKING IN TAIPEI THE FOUR POINT FIVE PERCENT LOSS WAS BROADLY BASED AND ATTRIBUTED TO WEAK BUYING INTEREST LINKED PARTLY TO THE TAIWAN CENTRAL BANK'S TIGHT MONETARY POLICY AND TO MARGIN LENDERS FOR BUYING STOCKS ON CREDIT BEING AT THEIR MAXIMUM LOAN LIMITS THE FINANCE SECTOR LED THE LOSERS PLUNGING SIX POINT THREE PERCENT IN SEOUL PRICES TUMBLED ONE POINT SEVEN PERCENT IN LIGHT TURNOVER CONTINUING LAST WEEK'S CORRECTION TRIGGERED BY THE THIRD ROUND OF MARKETCOOLING MEASURES BY THE SOUTH KOREAN GOVERNMENT LOSSES WERE SPREAD ACROSS THE BOARD IN MANILA SHARES SKIDDED ONE POINT ONE PERCENT IN MODERATE DEALINGS HURT BY PROFIT TAKING IN WELLINGTON LACK OF OVERSEAS BUYING AND SOME PROFIT TAKING PUSHED THE STOCK MARKET LOWER IN LATE TRADING AND THE MAIN INDEX SANK ONE POINT THREE PERCENT HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END STANDARD AND POOR'S CORPORATION LOWERED ITS RATINGS ON ABOUT TWO HUNDRED TWENTY MILLION DOLLARS OF THE DEBT OF THIS MAKER OF AUTOMOTIVE AEROSPACE MATERIALS HANDLING AND PACKAGING PRODUCTS THE RATINGS CONCERN SAID IT LOWERED THE COMPANY'S SUBORDINATED DEBT TO TRIPLE C. PLUS FROM SINGLE B. MINUS AND ALSO REMOVED THE RATING FROM CREDITWATCH S. AND P. SAID THE DOWNGRADE REFLECTS INTERLAKE'S QUOTE WEAKENED FINANCIAL PROFILE QUOTE ALTHOUGH THE COMPANY RECENTLY NEGOTIATED RELAXED COVENANTS ON ITS BANK CREDIT FACILITY TO PREVENT A POTENTIAL DEFAULT S. AND P. SAID AN ONEROUS DEBT BURDEN AND WEAK OPERATING PERFORMANCE PLACE THE FIRM UNDER CONTINUED FINANCIAL STRESS S. AND P. SAID THAT WHILE PROSPECTS IN DOMESTIC MARKETS ARE STRENGTHENING WEAK FOREIGN MARKET CONDITIONS WILL LIMIT THE IMPROVEMENT IN EARNINGS AND CASH FLOW FURTHER IT SAID THE COMPANY'S RATINGS OUTLOOK IS NEGATIVE AND COULD BE LOWERED IF THE COMPANY FAILS TO TAKE SUFFICIENT STEPS TO RELIEVE FINANCIAL STRESS OR IF OPERATIONS FAIL TO SHOW SIGNIFICANT IMPROVEMENT OVER THE NEXT FEW QUARTERS INTERLAKE HAD NO COMMENT ON THE ACTION IN AN OPINION FOR A UNANIMOUS COURT CHIEF JUSTICE WILLIAM REHNQUIST LAST WEEK HELD IN NOW V. SCHEIDLER THAT THE SANCTIONS OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT KNOWN AS RICO CAN BE APPLIED AGAINST ANTIABORTION PROTESTERS IN SCHEIDLER THE NATIONAL ORGANIZATION FOR WOMEN AND ABORTION CLINICS SUED THE PRO LIFE ACTION NETWORK AND SEVERAL INDIVIDUALS ALLEGING THAT PRO LIFE DEMONSTRATORS HAD VIOLATED FEDERAL AND STATE LAW IN THEIR ATTEMPTS TO CLOSE DOWN THE CLINICS THE RICO CLAIM ALLEGED THAT THE DEFENDANTS COMMITTED TWO OR MORE ACTS OF INTERSTATE EXTORTION BY USING QUOTE FORCE VIOLENCE OR FEAR QUOTE TO INDUCE THE CLINICS TO GIVE UP THEIR RIGHT TO OPERATE THE DEFENDANTS ARGUED THAT RICO SHOULD NOT APPLY TO AN ESSENTIALLY POLITICAL STRUGGLE BUT SHOULD BE LIMITED TO CRIMES WITH A PROFIT GENERATING MOTIVE THE COURT HELD HOWEVER THAT THERE IS NO RICO REQUIREMENT OF ECONOMIC MOTIVE AS A MATTER OF SIMPLE STATUTORY INTERPRETATION THE OPINION WAS OVERLY BROAD THE COURT HAD PREVIOUSLY HELD IN NINETEEN SIXTY ONE AND NINETEEN SIXTY FIVE THAT THE SHERMAN ANTITRUST ACT DOES NOT APPLY TO EFFORTS TO CHANGE LAW EVEN IF DONE BY CONSPIRACY AND WITH AN ANTICOMPETITIVE MOTIVE A SIMILAR APPROACH SHOULD HAVE BEEN USED TO LIMIT RICO IN THIS CASE BUT THE MOST SERIOUS FAILURE IN THE OPINION WAS THE JUSTICES' INABILITY TO APPRECIATE THE POSITIVE ROLE THAT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST HAS PLAYED IN AMERICAN HISTORY IMPLICIT IN THE LEAD OPINION BUT MADE QUITE EXPLICIT IN THE CONCURRENCE BY JUSTICES DAVID SOUTER AND ANTHONY KENNEDY IS THE VIEW THAT SOCIAL PROTEST CAN BE DIVIDED INTO TWO TYPES THAT PROTECTED BY THE FIRST AMENDMENT WHICH CANNOT BE MADE ILLEGAL AT ALL AND THAT NOT PROTECTED BY THE FIRST AMENDMENT WHICH CAN BE PUNISHED QUITE SEVERELY A MOMENT'S REFLECTION SHOWS THAT IN FACT SOCIAL PROTEST HAS NEVER LIMITED ITSELF TO LEGAL FORMS IN THE EARLY TWENTIETH CENTURY LABOR UNIONS OCCUPIED FACTORIES AND REFUSED TO MOVE AT AROUND THE SAME TIME WOMEN'S RIGHTS ADVOCATES CHAINED THEMSELVES TO FENCES AT THE WHITE HOUSE LATER CIVIL RIGHTS AND STUDENT PROTESTERS ROUTINELY INVADED BUSINESS AND SCHOOL PREMISES IN MASSIVE SIT INS AND TODAY A WIDE VARIETY OF PROTESTERS ROUTINELY CLIMB FENCES AND BREAK DOWN DOORS TO TRY TO STOP POWER PLANTS INCINERATORS AND SO FORTH NONE OF THESE ACTIVITIES HAVE EVER BEEN PROTECTED BY THE FIRST AMENDMENT OBVIOUSLY NO SOCIETY COULD TOLERATE UNRESTRICTED FORCEFUL ENTRY AND TRESPASS BUT JUST AS OBVIOUSLY THESE ILLEGAL BUT ESSENTIALLY PEACEFUL FORMS OF PROTEST HAVE SERVED A VERY IMPORTANT ROLE IN U. S. HISTORY BY DRAMATIZING OPPOSITION TO THE STATUS QUO ILLEGAL PROTEST HAS ALSO CHANNELED ALIENATED COMMUNITIES AWAY FROM VIOLENCE AND INTO THE STYLIZED ACTIONS OF CIVIL DISOBEDIENCE AND THE SIT IN THESE FORMS OF ILLEGAL PROTESTS HAVE BEEN MANAGED BY AN UNSTATED BUT CLEAR SOCIAL CONVENTION THAT THE CRIMES COMMITTED ARE NOT THAT SERIOUS IN PRACTICE THE PROTESTERS ARE FORCIBLY REMOVED SPEND SOME TIME IN JAIL AND THE CHARGES ARE IN MOST CASES LATER DROPPED IF THE PROTESTS CONTINUE ACTUAL JAIL SENTENCES ARE SERVED BUT THESE SENTENCES USUALLY AMOUNT TO ONLY A FEW DAYS PROSECUTORS AND STATE JUDGES UNDERSTAND THAT THEIR ROLE IS TO MINIMIZE AND CONTROL THE DISRUPTIONS NOT TO END THE PROTESTS AND NOT TO DESTROY THE PROTESTING ORGANIZATION THE COURT'S SCHEIDLER DECISION PUTS AN END TO THIS ACCOMMODATION UNDER THE COURT'S OPINION TWO ACTS OF FORCEFUL ENTRY INTENDED TO INTERFERE WITH THE RIGHTS OF BUSINESS CAN BE CONSIDERED EXTORTION FOR PURPOSES OF THE RICO ACT EVEN IF THE CONTEXT IS OBVIOUSLY ONE OF POLITICAL STRUGGLE RATHER THAN ECONOMICALLY MOTIVATED CRIMINAL ACTIVITY THUS IF ABORTION DEMONSTRATORS TWICE PUSH THEIR WAY INTO A CLINIC'S WAITING ROOM OCCUPY IT BLOCK THE HALLWAYS AND REFUSE TO MOVE THE DEMONSTRATORS ARE ALL SUBJECT TO RICO THEY MAY BE JAILED FOR UP TO TWENTY YEARS THEY CAN BE MADE TO PAY TREBLE DAMAGES AND SLASH OR PUNITIVE DAMAGES THE ORGANIZATION THAT SPONSORED THEM AND ANYONE WHO ENCOURAGED THEM ARE SUBJECT TO THE SAME SEVERE PENALTIES IT IS CLEAR THAT UNDER THESE CIRCUMSTANCES ONLY THE HARDIEST SOULS WILL ENGAGE IN SIT INS ORGANIZATIONS LIKE GREENPEACE THAT ROUTINELY ENGAGE IN SUCH ACTIVITY ARE NO DOUBT SERIOUSLY RECONSIDERING THEIR TACTICS IT IS TRUE THAT EVEN UNDER THE SCHEIDLER OPINION THE PROTESTER WILL EVENTUALLY BE ABLE TO ARGUE TO A CIVIL OR CRIMINAL JURY THAT THE PROTEST ACTIVITY DID NOT AMOUNT TO EXTORTION BECAUSE THERE WAS INSUFFICIENT FORCE OR BECAUSE OTHERS PRESENT AT THE PROTEST WERE NOT REASONABLY PUT IN FEAR BY THE PROTEST SOMETIMES THEY WILL WIN SUCH ARGUMENTS BUT THE PROTECTION OF THE JURY THOUGH IMPORTANT DOES NOT LESSEN SCHEIDLER'S THREAT TO THE SIT IN IF THE REALISTIC POTENTIAL PUNISHMENT FOR A SIT IN IS A DAY OR TWO IN JAIL MANY PEOPLE WILL ENGAGE IN THE PRACTICE IF THE STAKES ARE INSTEAD A JURY TRIAL A SUBSTANTIAL FINE TWENTY YEARS IN JAIL AND CIVIL DAMAGES FEW PEOPLE WILL SIT IN IT IS ALSO TRUE THAT CONCURRING JUSTICES SOUTER AND KENNEDY ARE AWARE THAT THE SCHEIDLER DECISION THREATENS SOCIAL PROTEST JUSTICE SOUTER INVOKED A NINETEEN EIGHTY TWO CASE N. DOUBLE A. C. P. V. CLAIBORNE HARDWARE COMPANY TO REMIND LOWER COURT JUDGES TO BE SENSITIVE TO FREE SPEECH VALUES IN TRYING RICO CASES CLAIBORNE HELD THAT THE N. DOUBLE A. C. P. COULD NOT BE LIABLE FOR ORGANIZING A CIVIL RIGHTS BOYCOTT OF LOCAL BUSINESSES EVEN THOUGH BOYCOTTS BY ECONOMIC COMPETITORS ARE ACTIONABLE UNFORTUNATELY AS JUSTICE SOUTER NOTES CASES LIKE CLAIBORNE PROTECT SOCIAL PROTEST ONLY TO THE EXTENT THAT THE ACTIONS TAKEN TURN OUT TO BE FULLY PROTECTED FIRST AMENDMENT ACTIVITY THE SIT IN IS NOT PROTECTED BY THE FIRST AMENDMENT NOR SHOULD IT BE PEOPLE CANNOT BE ALLOWED FREELY TO INVADE THE PROPERTY OF OTHERS THAT DOES NOT MEAN HOWEVER THAT WE SHOULD TRY TO STAMP OUT SIT INS COMPLETELY THE SIT IN SHOULD BE DISCOURAGED BY THE LAW OF TRESPASS IT SHOULD NOT BE SUBJECT TO FELONY AND TREBLE DAMAGE TREATMENT AS RICO WOULD ALLOW NO DOUBT THERE ARE MANY WHO APPLAUD THE COURT'S DECISION IN SCHEIDLER SOME DO SO BECAUSE THEY SUPPORT ABORTION RIGHTS AND CONSIDER ANTIABORTION PROTESTERS TO BE TERRORISTS SOME DO SO BECAUSE THEY SUPPORT PROPERTY RIGHTS AND SEE NO REASON WHY THE LAW SHOULD EVER BE VIOLATED THESE VIEWS ARE SHORT SIGHTED RICO WAS NEVER NEEDED TO COMBAT TRULY VIOLENT PROTEST MURDER ASSAULT AND ARSON ALREADY CARRY SEVERE STATE AND FEDERAL PENALTIES RICO LAWSUITS WILL NOT BE AIMED AT THEM RATHER THEY WILL BE AIMED AT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST FIRST ABORTION CLINICS WILL USE RICO TO DEFEND THEMSELVES AGAINST PROTEST EVENTUALLY POWERFUL ECONOMIC INTERESTS MAY DO SO PROTEST WILL NOT END BUT IT WILL BECOME LESS OPEN AND MORE SECRETIVE LESS PEACEFUL AND MORE VIOLENT LESS HOPEFUL AND MORE BITTER MR. LEDEWITZ IS A PROFESSOR OF LAW AT DUQUESNE UNIVERSITY IN PITTSBURGH IT'S FEEDING TIME AT THE IOWA TROUGH AGAIN THE ISSUE IS PUBLIC SUBSIDY FOR CORPORATE DEVELOPMENT AND THIS TIME BIG LABOR HAS IT RIGHT AND THE PRO BUSINESS REPUBLICAN GOVERNOR HAS IT WRONG IOWA GOVERNOR TERRY BRANSTAD WANTS TO OFFER ABOUT SEVENTY THREE MILLION DOLLARS IN SUBSIDIES TO LURE IPSCO A CANADIAN STEELMAKER TO LOCATE A PLANT NEAR THE MISSISSIPPI RIVER TOWN OF MONTPELIER WITH THREE HUNDRED JOBS INITIALLY PLEDGED THAT WOULD AMOUNT TO ABOUT TWO HUNDRED FORTY THREE THOUSAND DOLLARS IN SPECIAL TAX BREAKS AND GRANTS FOR EACH OF THE WORKERS THIS WOULDN'T SET THE RECORD KENTUCKY HOLDS THAT AT THREE HUNDRED FIFTY THOUSAND DOLLARS A POP ALSO FOR A MINIMILL RUN BY ANOTHER CANADIAN STEELMAKER BUT IOWA IS NO PIKER IN THE STATES' BIDDING WAR FOR DESIRED BUSINESSES AND IPSCO THINKS IT CAN GET ITS PRICE FROM SOMEONE SO IT'S TOLD THE IOWA LEGISLATURE TO GET A MOVE ON APPROVING THE DEAL THE IOWA FEDERATION OF LABOR SAYS STOP PRESIDENT JAMES WENGERT OBJECTS TO FAVORING SELECT COMPANIES WITH QUOTE CORPORATE WELFARE QUOTE AT THE EXPENSE OF OTHER POTENTIAL USES FOR THE TAX MONEY ONE SUCH USE WE'D SUGGEST COULD BE GENERAL TAX RELIEF SUCH AS A REDUCTION IN THE PROPERTY LEVY ON EXPENSIVE MACHINERY THAT VEXES THE IPSCO FOLKS AND NO DOUBT MANY OTHER BUSINESSES MR. WENGERT SAYS LABOR IS OPPOSED EVEN THOUGH HE EXPECTS AN IPSCO FACILITY TO BE UNIONIZED AS ITS CANADIAN PLANTS ARE AN EXISTING UNION STEELMAKER IN THE AREA CONTENDS IT COULD BE PLACED AT A DISADVANTAGE INDEED AS TOM VILSACK A DOWNRIVER DEMOCRATIC STATE SENATOR OBSERVES YOU'RE ACTUALLY PICKING AND CHOOSING BUSINESSES SEVERAL DEMOCRATS IN IOWA AT LEAST DON'T THINK THAT'S A PROPER ROLE FOR GOVERNMENT THEY OUGHT TO SEND THAT MESSAGE TO THE WHITE HOUSE THE HANDOUT GAME WHETHER IT INVOLVES STEEL MILLS OR BASEBALL TEAMS OR HIGH TECH R. AND D. STOPS WHEN POLITICIANS FATHOM OR ARE MADE TO LEARN THAT IT DOESN'T PAY OFF IN MOST CASES AND IT ISN'T THEIR ROLE IN LIFE TO BESTOW THESE FAVORS ANYWAY THEY OUGHT TO ATTEND TO COMPETITIVENESS BY MAXIMIZING THE APPEAL OF THEIR JURISDICTION TO EVERY KIND OF ENTERPRISE NOT JUST THOSE WITH A BIG SNOUT IN THE SPIRIT OF TAPPING JOSEPH KENNEDY TO OVERHAUL THE SECURITIES AND EXCHANGE COMMISSION SIXTY YEARS AGO WHO BETTER TO PRESCRIBE CHANGES FOR THE TROUBLED INSTITUTION OF CONGRESS THAN TONY COELHO THE FIFTY ONE YEAR OLD MR. COELHO AFTER A METEORIC RISE RESIGNED AS HOUSE DEMOCRATIC WHIP IN NINETEEN EIGHTY NINE UNDER A CLOUD OF ETHICAL SUSPICION HE HAS GONE ON TO ACHIEVE STUNNING SUCCESS WITH WERTHEIM SCHRODER AND COMPANY A WALL STREET INVESTMENT FIRM IN THE PROCESS HE WAS CLEARED OF ANY LEGAL WRONGDOING HE STILL POSSESSES ENORMOUS AFFECTION FOR CONGRESS BUT BRINGS A PERSPECTIVE THAT COMES ONLY FROM DISTANCE SITTING IN ONE OF HIS OFFICES LATE LAST WEEK SURROUNDED BY PICTURES AND MEMORABILIA OF HIS EARLIER LIFE THE FORMER CALIFORNIA DEMOCRATIC LAWMAKER ZEROS IN ON WHAT'S WRONG QUOTE CONGRESS HAS BECOME STAGNANT IT HASN'T GROWN WITH THE CHANGES THAT HAVE OCCURRED IN SOCIETY THEY HAVE CREATED MORE POWER CENTERS AND WITH THEM MORE OPPORTUNITIES FOR GRIDLOCK THESE ARE NOT ONLY LEGISLATIVE CENTERS BUT YOU THEN GET THE LAW FIRMS THE LOBBYISTS AND ALL THE INDUSTRIES THAT THEN FIT IN WITH THEM JUST AS JOE KENNEDY WAS ABLE TO MANIPULATE FINANCIAL MARKETS IN THE NINETEEN TWENTIES TONY COELHO WAS ABLE TO MANIPULATE THIS SYSTEM IN THE NINETEEN EIGHTIES HE UNDERSTOOD THESE POWER CENTERS AND HOW THEY THRIVED ON WHAT THE LATE CALIFORNIA POLITICIAN JESSE UNRUH CALLED THE MOTHER'S MILK OF POLITICS MONEY OR CAMPAIGN CONTRIBUTIONS HERE'S HOW TONY COELHO WOULD CHANGE THE SYSTEM HE KNOWS SO WELL LIMIT SERVICE ON CONGRESSIONAL COMMITTEES RATHER THAN IMPOSE TERM LIMITS FOR OFFICE A CONSTITUENCY HAS A RIGHT TO ELECT THEIR REPRESENTATIVE FOR AS LONG AS THEY WANT SAYS MR. COELHO WHO SERVED FOR ELEVEN YEARS AND HAS EXTOLLED THE VIRTUES OF CHANGE AND TURNOVER TO OLD CONGRESSIONAL FRIENDS BUT CONGRESSIONAL TERM LIMITS WOULD ELIMINATE MUCH OF THE KNOWLEDGE AND EXPERIENCE IN CONGRESS AND IN EFFECT TURN OVER POWER TO STAFF TO LOBBYISTS AND TO THE PRESS I DON'T THINK THAT'S WHERE THE POWER SHOULD BE THE UNDERLYING CASE FOR TERM LIMITS THAT CONGRESS IS DOMINATED BY LONG SERVING PROFESSIONAL POLITICIANS IS ERODING CHARLES COOK THE BEST INDEPENDENT ELECTION ANALYST NOW CALCULATES THAT IN THE NEXT CONGRESS AT LEAST TWO HUNDRED TWENTY FIVE TO TWO HUNDRED THIRTY REPRESENTATIVES OR OVER HALF THE HOUSE WILL HAVE BEEN ELECTED IN THE NINETEEN NINETIES INSTEAD MR. COELHO WANTS TERM LIMITS FOR COMMITTEE SERVICE SIX YEARS ON A SUBCOMMITTEE AND EIGHT YEARS ON A FULL COMMITTEE THEN LAWMAKERS WOULD HAVE TO ROTATE COMMITTEE ASSIGNMENTS WHEN INDIVIDUALS HAVE BEEN SUBCOMMITTEE OR COMMITTEE CHAIRMEN FOR TOO LONG THEY ARE NOT AS RECEPTIVE TO NEW IDEAS NEW CHALLENGES A SAM NUNN OR A DAN ROSTENKOWSKI HOWEVER WOULD RETAIN EXPERTISE FROM HIS PREVIOUS COMMITTEES QUOTE YOU PROBABLY WOULDN'T SEE AS MANY PEOPLE STAYING AS LONG BUT YOU STILL WOULD RETAIN A LOT OF THE KNOWLEDGE AND EXPERIENCE AND IT WOULD MAKE FOR MUCH MORE INTERESTING FLOOR DELIBERATIONS QUOTE MR. COELHO NOTES AUTOMATICALLY REORGANIZE CONGRESS EVERY DECADE AN OFT REPEATED MYTH IS THAT CONGRESSIONAL STAFFS AND SUBCOMMITTEES HAVE BEEN MUSHROOMING YET AS LAST YEAR'S EXCELLENT STUDY OF CONGRESS BY THE AMERICAN ENTERPRISE INSTITUTE AND BROOKINGS INSTITUTION REPORTED CONGRESSIONAL STAFFING HAS BEEN LEVEL FOR MORE THAN A DECADE AND THE NUMBER OF SUBCOMMITTEES IS DECLINING SUBCOMMITTEES DID PROLIFERATE AFTER WORLD WAR TWO REACHING A PEAK IN BOTH BODIES IN NINETEEN SEVENTY FIVE ONE HUNDRED FIFTY ONE IN THE HOUSE AND ONE HUNDRED FORTY IN THE SENATE BUT THEY HAVE DROPPED TODAY TO ONE HUNDRED FIFTEEN IN THE HOUSE AND EIGHTY SIX IN THE SENATE TONY COELHO SAYS THE SYSTEM STILL IS OUT OF KILTER STAFF AND SUBCOMMITTEES COULD BE CUT SOME MORE HE BELIEVES AND THERE'S AN OBVIOUS NEED FOR REARRANGING LEGISLATIVE RESPONSIBILITIES HERE MR. COELHO SHIES AWAY FROM SPECIFICS BUT SOME ARE APPARENT PANELS LIKE THE HOUSE ADMINISTRATION COMMITTEE AND THE SENATE SELECT COMMITTEES OUGHT TO BE ELIMINATED AND IT'S CLEAR THAT THE HOUSE WAYS AND MEANS AND SENATE FINANCE COMMITTEES HAVE TOO WIDE A JURISDICTION MOST CONGRESSIONAL CHANGES ARE DONE ON AN AD HOC BASIS SO THE FORMER HOUSE DEMOCRATIC WHIP WANTS AN AUTOMATIC REORGANIZATION AT LEAST EVERY TEN YEARS DIRECTED BY THE DEMOCRATIC AND REPUBLICAN LEADERS OF BOTH HOUSES COMBINED WITH TERM LIMITS FOR COMMITTEES THAT SHOULD HELP REDUCE BOTH THE SPECIAL INTEREST DRIVEN PARALYSIS AND THE PREVAILING LET'S DO IT THIS WAY BECAUSE THAT'S THE WAY WE'VE ALWAYS DONE IT SYNDROME MR. COELHO WORRIES LESS ABOUT TOO MUCH POWER SHIFTING TO CONGRESS NOTING THAT THESE EXECUTIVE LEGISLATIVE BALANCE OF POWER EQUATIONS INVARIABLY GO IN CYCLES HE DOES HOWEVER SUPPORT A MODIFIED LINE ITEM VETO FOR TAXES AS WELL AS SPENDING TO GIVE THE PRESIDENT MORE LEVERAGE ON BUDGETARY MATTERS REFORM CAMPAIGN FINANCING SO LEGISLATORS DEAL MORE WITH SUBSTANTIVE ISSUES AND LESS WITH RAISING CAMPAIGN MONEY IN AMERICAN POLITICS THERE HASN'T BEEN A BETTER POLITICAL FUND RAISER THAN TONY COELHO NOBODY KNOWS BETTER WHAT A DEBILITATING PROCESS IT IS THE PROBLEM IS NOT SO MUCH THAT CONTRIBUTORS THINK THEY OWN YOU OR INDUSTRIES CONTROL YOU ALTHOUGH THERE ARE EXAMPLES OF THAT MY CONCERN IS THE AMOUNT OF TIME IT TAKES FOR INDIVIDUALS TO RAISE MONEY I HAD A VERY CLOSE FRIEND IN THE SENATE WHO TOLD ME THAT IN THE TWO YEARS PRIOR TO RE ELECTION HE SPENDS AS MUCH AS SEVENTY PERCENT OF HIS TIME RAISING MONEY THAT MEANS HE ONLY SPENDS THIRTY PERCENT OF HIS TIME ON THE COUNTRY'S PROBLEMS THERE HAS BEEN A REAL ARMS RACE IN SPENDING ON CONGRESSIONAL CAMPAIGNS SOARING FIVEFOLD FROM NINETY NINE MILLION DOLLARS IN NINETEEN SEVENTY SIX TO FIVE HUNDRED TWENTY SIX POINT SIX MILLION DOLLARS LAST TIME MR. COELHO WOULD PLACE A STRICT CAP ON OVERALL SPENDING HIGH ENOUGH NOT TO DISADVANTAGE CHALLENGERS REQUIRE FULL DISCLOSURE OF ALL CONTRIBUTIONS AND PROVIDE PARTIAL PUBLIC FINANCING HE WOULD REQUIRE THAT A SIGNIFICANT AMOUNT OF A CANDIDATE'S OVERALL MONEY COME FROM THAT PARTICULAR DISTRICT OR STATE TOTAL PUBLIC FINANCING AS IN PRESIDENTIAL GENERAL ELECTIONS IS DESIRABLE BUT MR. COELHO DOUBTS THERE'S SUFFICIENT PUBLIC SUPPORT BUT HE SUGGESTS MORE THAN A FEW MEMBERS USE PUBLIC OPPOSITION AS AN EXCUSE TO OPPOSE EVEN PARTIAL PUBLIC FINANCING THEY DON'T WANT A COMPETITIVE RACE AND PUBLIC FINANCING WOULD CREATE MORE COMPETITIVE RACES AND THE MAN WHO ASSEMBLED THE DEMOCRAT'S MOST EFFECTIVE FUND RAISING MACHINE IN THE NINETEEN EIGHTIES KNOWS HE HELPED CREATE A MONSTER CAMPAIGNS HAVE NOW BECOME A FULL TIME BUSINESS YOU SET UP THE MECHANISM TO HAVE FULL TIME POLLSTERS FULL TIME MEDIA PEOPLE AND OTHERS THEY ARE ENGAGED YEAR ROUND THAT MEANS YOU RAISE ENOUGH MONEY TO PAY THEM ALL YEAR THE CYCLE JUST GOES ON AND ON ALSO IT'S LIKE HEALTH CARE IN THAT EVERY NEW FANDANGLE THING THAT COMES ALONG POLITICALLY YOUR CONSULTANT WANTS TO TRY YOU DON'T NEED IT BUT YOU'RE AFRAID THE OTHER SIDE WILL HAVE IT AND IT JUST KEEPS DRIVING COSTS UP I FOUND AL HUNT'S FEBRUARY THIRD POLITICS AND PEOPLE QUOTE COELHO ON CONGRESSIONAL REFORM QUOTE AMUSING AND A LITTLE BIT IRONIC I AM TEMPTED TO SAY AS VICTOR LASZLO SAID TO RICK IN CASABLANCA WELCOME TO THE FIGHT THIS TIME I KNOW OUR SIDE WILL WIN BUT TONY COELHO HAS NEVER BEEN A DISINTERESTED BYSTANDER IN THE BATTLE FOR TRUE CONGRESSIONAL REFORM IN MY VIEW HE HAS BEEN ON THE OTHER SIDE OF THE DEBATE WORKING TO PRESERVE THE STATUS QUO UNDER THE DEMOCRATIC MAJORITY AS MAJORITY WHIP HE WORKED TO STRENGTHEN THE DEMOCRATS' GRIP ON THE HOUSE SKILLFULLY MANIPULATING VOTES TO INSURE THAT POLITICS WON OUT OVER POLICY HE ALSO REVOLUTIONIZED THE WAY SPECIAL INTERESTS PLAYED A PART IN DEBATES MAKING CERTAIN THAT NO VOTE CAME WITHOUT A PRICE THIS IS WHERE REFORM SHOULD START HE ADVOCATES A TERM LIMIT ON CONGRESSIONAL COMMITTEES REPUBLICANS AGREE WITH THE CONCEPT OF TERM LIMITS FOR SENIOR MEMBERS ON COMMITTEES WHICH IS WHY WE MADE A RULES CHANGE TO THAT EFFECT IN OUR OWN CONFERENCE RULES REGRETTABLY MR. COELHO'S FORMER COLLEAGUES IN THE DEMOCRATIC LEADERSHIP HAVE RESISTED OUR EFFORTS TO GET THIS REFORM IMPLEMENTED IN THE HOUSE HIS LEADERSHIP COLLEAGUES ALSO RESISTED MY EFFORT TO INCLUDE TAX BILLS FOR THE LINE ITEM VETO ANOTHER REFORM ADVOCATED BY MR. COELHO BY ALLOWING THE PRESIDENT TO STRIP OUT SPECIAL INTEREST TAX LOOPHOLES AS WELL AS SPECIAL INTEREST APPROPRIATIONS THE FIRST STEPS TO FISCAL SANITY COULD BE TAKEN UNFORTUNATELY MY AMENDMENT THAT PASSED THE HOUSE OVERWHELMINGLY WAS SNUFFED OUT BY THE HOUSE LEADERSHIP WITH A TECHNICAL PROCEDURAL MANEUVER MR. COELHO SAYS HE BELIEVES CONGRESS SHOULD BE REORGANIZED AUTOMATICALLY EVERY DECADE THAT'S NOT A BAD IDEA BUT SURELY MR. COELHO KNOWS THE BIGGEST OBSTACLE TO REFORM COMES WITH HIS FORMER COLLEAGUES IN THE HOUSE DEMOCRATIC LEADERSHIP AS OUR EXPERIENCE WITH THE JOINT COMMITTEE ON THE ORGANIZATION OF THE CONGRESS PROVED FINALLY HE BELIEVES THAT THE CAMPAIGN FINANCING SYSTEM SHOULD BE OVERHAULED TO GIVE LEGISLATORS A BREAK FROM FUND RAISING COMING FROM THE MAN WHO HAD MORE TO DO WITH THE CURRENT SYSTEM THAN ANYONE ELSE THIS IS QUITE AN ADMISSION REPUBLICANS HAVE A COMPREHENSIVE CAMPAIGN FINANCE REFORM PACKAGE THAT BANS PACS BANS SOFT MONEY AND REQUIRES THAT MOST OF A CANDIDATE'S FUNDS COME FROM THE DISTRICT WHEN MR. COELHO ENDORSES OUR PLAN I KNOW HE WILL BE SERIOUS MAYBE TONY COELHO HAS CHANGED MAYBE HE NOW REALLY BELIEVES THAT REPUBLICANS HAVE BEEN RIGHT ALL ALONG IN THAT CASE I WOULD SAY WELCOME TO THE FIGHT THIS TIME I KNOW OUR SIDE WILL WIN U. K. AIRPORT ADMINISTRATOR B. A. A. P. L. C. SAID TRAFFIC AT ITS SEVEN AIRPORTS ROSE FIVE POINT FOUR PERCENT IN JANUARY FROM A YEAR EARLIER TO FIVE POINT SIX MILLION PASSENGERS STANSTED AIRPORT RECORDED TWENTY PERCENT GROWTH HEATHROW WAS UP SEVEN POINT ONE PERCENT AND GATWICK WAS UNCHANGED FROM A YEAR EARLIER YOUR JANUARY EIGHTEENTH ARTICLE QUOTE EXPECTED BIG ONE HASN'T ARRIVED YET QUOTE ABOUT THE LOS ANGELES EARTHQUAKE HAS AN ARITHMETIC FLAW THE ARTICLE ACKNOWLEDGES THE EARTHQUAKE AS BEING SIX POINT SIX ON THE RICHTER SCALE WHICH IS A LOGARITHMIC SCALE TO THE BASE TEN THE NINETEEN NINETY TWO EARTHQUAKE IN SOUTHERN CALIFORNIA WAS ACCORDING TO THE ARTICLE ONLY SEVEN POINT FIVE MAGNITUDE WHILE THIS IS A RESPECTABLE MAGNITUDE IT IS ONLY EIGHT TIMES LARGER RATHER THAN THE THIRTY TIMES LARGER STATED IN THE ARTICLE BY COMPARISON THE EIGHT POINT THREE SAN FRANCISCO NINETEEN OH SIX EARTHQUAKE WAS FIFTY TIMES LARGER THAN THE ONE WE HAD HERE JANUARY SEVENTEENTH PART OF THE C. B. S. OLYMPIC BROADCASTING TEAM IN LILLEHAMMER HANK KASHIWA IS BACK AMID THE EUROPEAN LED INTERNATIONAL SKI FRATERNITY HE EARNED HIS BID AS A WORLD CLASS RACER FOR MORE THAN A DECADE INCLUDING A SPOT ON THE U. S. TEAM AT THE NINETEEN SEVENTY TWO WINTER GAMES IN HIS DAY JOB AS PRESIDENT OF VOLANT SKI CORPORATION IN BOULDER COLORADO HOWEVER MR. KASHIWA IS RATHER OUTSIDE THE FOLD HIS IS A NICHE EQUIPMENT MAKER JUST AS AMERICANS GENERALLY HAVE BECOME MORE PERIPHERAL TO SKI MANUFACTURING WHEN A U. S. CONSUMER BUYS DOWNHILL SKIS ODDS ARE NEARLY THREE TO ONE HE'LL GET A EUROPEAN IMPORT CROSS COUNTRY SKIS ALMOST CERTAINLY COME FROM ACROSS THE ATLANTIC THE SAME WITH BOOTS AND BINDINGS THE LINK BETWEEN SKIER AND SLATS THE MAJOR REMAINING EXCEPTION TO THIS RULE IS K. TWO CORPORATION IN VASHON WASHINGTON ON AN ISLAND IN PUGET SOUND BUT EVEN K. TWO'S DOWNHILL SKIS WHICH IT SAYS HAVE TWENTY PERCENT OF THE U. S. MARKET AND TEN PERCENT WORLD WIDE DRAW NEARLY HALF THEIR COMPONENT VALUE FROM ABROAD THE MATERIALS BASE FOR THE QUOTE HARD GOODS QUOTE IN SKIING IS MAINLY OVERSEAS IN EUROPE PRIMARILY AND IN JAPAN WHICH EQUIPS ITS HOME MARKET AND DOES LITTLE EXPORTING IN THIS INDUSTRY THERE'S NOTHING WRONG HERE MANUFACTURING IS A GLOBAL ENTERPRISE AND SKIERS ARE ENTITLED TO THE BEST BUY BUT WHY IS RENEWED AMERICAN INDUSTRIAL PROWESS NOT SO EVIDENT IN THIS FIVE BILLION DOLLARS INTERNATIONAL SECTOR SKIING IS A SPECIAL CASE IT TURNS OUT BUT A WORLD OF MORE STABLE CURRENCIES MIGHT CHANGE THINGS SKIING IS DIFFERENT FIRST OF ALL BECAUSE THE U. S. MARKET IS NOT THE DRIVER THAT IT IS IN MOST CONSUMER GOODS ONLY FIVE PERCENT TO TEN PERCENT OF AMERICANS SKI REGULARLY LESS THAN IN ANY MAJOR INDUSTRIALIZED NATION EXCEPT BRITAIN THIS MEANS THAT EVEN AT MORE THAN A MILLION SKI SETS SOLD ANNUALLY THE U. S. PACKS BARELY HALF THE PUNCH OF JAPAN AND MAYBE A THIRD THAT OF EUROPE WITH ITS ORIGINS IN THE ALPS DOWNHILL AND THE NORDIC COUNTRIES CROSS COUNTRY AND ITS NETWORKS OF CRAFTSMEN DOWN TO THE BUCKLES ON THE BOOTS CENTERED ON THE CONTINENT THE SPORT HAS GOOD REASON FOR CONGREGATING COMMERCIALLY IN EUROPE HOWEVER THE U. S. INDUSTRY ENJOYED A SIZABLE OPENING FROM WORLD WAR TWO TILL THE EARLY NINETEEN SEVENTIES DURING WHICH TIME IT INTRODUCED THE METAL SKI AND LATER THE HARD PLASTIC BOOT HOWARD HEAD'S SKI COMPANY IN TIMONIUM MARYLAND WAS A MAJOR PLAYER BUT HIS NAMESAKE BRAND AND OTHER ONETIME U. S. PRODUCTS INCLUDING LANGE BOOTS ARE NOW MADE IN EUROPE OR IN THE CASE OF ONCE POPULAR HEXCEL SKIS NOT AT ALL PERFORMANCE SKIING SUCH AS AT THE OLYMPICS IS NEARLY ENTIRELY A EUROPEAN EXPO AMERICAN TOMMY MOE WON HIS DOWNHILL GOLD MEDAL THIS WEEK ON SKIS FROM DYNASTAR OF FRANCE EVEN AT THE RECREATIONAL END OF THE MARKET HOWEVER THE U. S. HAS RETREATED WITH ITS SUPPLIER BASE BUT PRODUCTION SITING DOESN'T JUST REFLECT PHYSICAL IMPERATIVES DAVID CURRIER AN OLYMPIC TEAMMATE OF MR. KASHIWA'S AND NOW MARKETING DIRECTOR AT VOLANT OBSERVES THAT THE SPORT AND THE INDUSTRY ARE LACED WITH SOCIAL TIES THAT EXTEND INTO THE DISTRIBUTION AND SALES ARMS CRACKING THAT EURO CENTERED COMPLEX IS SOMETHING EVEN THE JAPANESE HAVE NOT TRIED VOLANT IS ATTEMPTING TO CAPTURE ATTENTION WITH A STAINLESS STEEL SKI THAT IT CLAIMS BOOSTS PERFORMANCE MR. KASHIWA'S BROTHER A LOS ALAMOS NATIONAL LABORATORY ENGINEER WHO ONCE WORKED AT K. TWO DEVELOPED THE SKI AND VOLANT GOT OFF THE GROUND IN THE LATE NINETEEN EIGHTIES WITH CAPITAL FROM MIKE MARKKULA ITS CHAIRMAN AND OTHER SILICON VALLEY EXECUTIVES IT HAS YET TO TURN A PROFIT BUT HANK KASHIWA SAYS THAT CAN BE DONE NEXT YEAR WITH SALES REACHING THIRTY FIVE THOUSAND TO FORTY FIVE THOUSAND ADDING I BETTER EVEN AT THAT TARGET LEVEL VOLANT WOULDN'T BE NOTICED ON MANY LIFTS BY CONTRAST PRODUCTION AT K. TWO'S VASHON ISLAND FACILITIES WHERE PARENT ANTHONY INDUSTRIES ALSO PUTS OUT THE SMALLER OLIN AND PRE LINES IS ESTIMATED TO HIT FOUR HUNDRED THOUSAND A YEAR WITH MORE THAN SEVEN HUNDRED EMPLOYEES K. TWO TRAILS ONLY FRENCH BASED ROSSIGNOL IN POPULARITY ON THE U. S. SLOPES TIM PETRICK K. TWO'S GENERAL MANAGER ALSO TOUTS THE COMPANY'S INROADS INTO JAPAN WHERE THE JAZZIER AMERICAN SKI IMAGE HELPED IT TO DOUBLE SALES IN FOUR YEARS TO NEARLY ONE HUNDRED THOUSAND PAIRS THE GAINS CAME AFTER A FIGHT OVER ACCESS AND IN FACT K. TWO HAS BENEFITED FROM A U. S. GOVERNMENT FUNDED TRADE ADJUSTMENT ASSISTANCE CENTER IN THE NORTHWEST WHILE ACCENTING THE DEGREE OF HAND CRAFTSMANSHIP IN ITS ASSEMBLY K. TWO HAS BEEN ABLE TO KEEP COSTS DOWN WELL BELOW WHAT OLIN EXPERIENCED AT ITS PRIOR CONNECTICUT LOCATION SAYS MR. PETRICK WHO WAS IN CHARGE OF RELOCATING THAT DIVISION BUT THE ESSENCE OF MASS SKI MAKING MAY BE IN MACHINERY SUCH AS AT THE THIRTY FIVE MILLION DOLLAR CAPPED SKI PLANT ROSSIGNOL OPENED IN FRANCE IN LATE NINETEEN NINETY TWO AND INVESTMENT CAPITAL IS BOUND TO BE ATTRACTED BY EUROPE'S EXISTING INFRASTRUCTURE CAPPED SKIS WHICH ENCASE A USUALLY WOOD OR FOAM CORE IN HARD PLASTICS CAN BE MORE EFFICIENT TO MAKE THAN TRADITIONAL LAMINATED SKIS VOLANT'S TWIST IS TO RETURN TO LIGHTWEIGHT METAL FOR ITS CAPS K. TWO AND OTHER MAKERS USE FIBERGLASS SURFACES THAT BETTER LEND THEMSELVES TO THE STRIKING COLORS THAT CHARACTERIZE TODAY'S SKIS IT'S OFTEN HARD TO SEPARATE FAD FROM FACT IN SKI TECHNOLOGY THE TRUTH PROBABLY IS THAT ONLY SKILLED RECREATIONAL SKIERS NOTICE MUCH DIFFERENCE ON THE MOUNTAIN LIKE MANY OTHERS SKI PRODUCTS SELL AS MUCH ON SIZZLE AS ON STEAK THAT MEANS AMERICAN MAKERS CAN BEAT THE JAPANESE BUT THE MAJOR EUROPEAN LINES WHICH NEARLY ALL HAVE U. S. MARKETING ARMS HAVE LEARNED TO BEST BOTH CURRENCY COUNTS TOO WAS IT A COINCIDENCE THAT THE U. S. SKI INDUSTRY WAS ROUTED TO ITS VASHON ISLAND BULWARK DURING THE GREAT MONETARY UPHEAVALS TODAY EVEN K. TWO UTILIZES PRODUCTION IN NORWAY NEAR LILLEHAMMER TO SERVE ITS OVERSEAS MARKETS INCLUDING JAPAN WITH LESS EXCHANGE RATE RISK THAN A DOLLAR BASED PRODUCT EVEN IN SNOWBOARDING THE YOUTH CENTERED CROSS BETWEEN SURFING AND SKIING THAT WAS AN AMERICAN IDEA AND NOW ACCOUNTS FOR MORE THAN TEN PERCENT OF THE SKI TRADE CURRENCIES ARE A FACTOR BURTON SNOWBOARDS OF BURLINGTON VERMONT THE DOMINANT NAME IN THAT SUBMARKET RELIES ON AN AUSTRIAN PLANT FOR MUCH OF ITS OUTPUT ALTHOUGH THE PRIVATELY HELD COMPANY REPORTS IT STILL IS MOSTLY A U. S. CANADIAN PRODUCER IN BOTH THE RADICAL CULTURE OF SNOWBOARDING AND IN THE INCREASINGLY MATURE MARKET FOR DOWNHILL SKIING THERE MAY BE HOPE FOR A DECENT U. S. BASE IN THE SPORT SNOWBOARD SHREDDERS HAVE THEIR CULT HEROES BUT BASICALLY REBEL AGAINST TOO MUCH MANIPULATION IN THE ALPINE SEGMENT MEANWHILE EUROPEAN BRAND ASSOCIATION WITH THE WORLD'S GREAT SKI RACERS MAY NO LONGER BE SUCH A TRUMP CAN AMERICAN BABY BOOMERS FATHOM HOW THEIR NEEDS ON THE SLOPES RELATE TO TOMBA ON T. V. THE OLYMPICS ARE A BOON TO THE BUSINESS NO QUESTION BUT IN THE FUTURE SALES MAY INCREASINGLY HINGE ON OFFERING THE AVERAGE SKIER RELIABLE TURNS STABILITY AND GOOD VALUE MANUFACTURERS STRUGGLING TO ANSWER THAT CALL MIGHT ASK AS MUCH OF MONETARY AUTHORITIES I OFTEN QUOTE ME ARE SAD TO FIND THAT NOW IT'S QUOTE IN QUOTE WHEN YOU CAN'T TELL WHOM FROM WHO HEWLETT PACKARD COMPANY PALO ALTO CALIFORNIA SAID IT MAY HAVE DEVELOPED A PRACTICAL ALTERNATIVE TO INCANDESCENT LAMPS THE ADVANCE WHICH DEPENDS ON A NEW TECHNIQUE THAT MAKES POSSIBLE THE WORLD'S BRIGHTEST LIGHT EMITTING DIODES COULD TURN UP IN AUTOMOBILE TAILLIGHTS WITHIN TWO TO THREE YEARS THE COMPANY SAID LIGHT EMITTING DIODES FORM THE BASIS FOR VARIOUS THIN ELECTRONIC SCREENS THEIR LACK OF BRIGHTNESS HAS HAMPERED THEIR USE IN THE PAST BUT HEWLETT PACKARD SAID ITS LIGHT EMITTING DIODES ARE AS MUCH AS FOUR TIMES BRIGHTER THAN THOSE FROM RIVALS THE COMPANY DECLINED TO FORECAST THE SIZE OF THE MARKET FOR THESE NEW LIGHTS BUT A SPOKESMAN SAID THE TECHNOLOGY COULD REPLACE INCANDESCENT LAMPS IN MANY SITUATIONS INCLUDING TRAFFIC LIGHTS THE COMPANY SAID IT WILL BEGIN SELLING SAMPLE QUANTITIES OF THE LIGHTS AT MIDYEAR THE NEW RECEIVED WISDOM ABOUT INVESTING IN BANKRUPTCIES IS THAT IF YOU GET A CHANCE TO PLAY YOU CAN BET THE JUICE IS GONE BY THAT TIME EXECUTIVES OF STRAPPED COMPANIES ALREADY HAVE INDUCED WORKOUTS FAVORABLE TO THEM AND THEIR ALLIES ONLY WHEN THE STOCKS ARE IN FRIENDLY HANDS DO THEY SOAR PHOENIX LIKE INTO THE MARKET EXPLAIN THEN PLEASE THE BEHAVIOR OF HILLS STORES WHICH WAS KNOWN BEFORE ITS FEBRUARY NINETEEN NINETY ONE BANKRUPTCY COURT FILING AS HILLS DEPARTMENT STORES THE CANTON MASSACHUSETTS BASED RETAILER WHICH OPERATES DISCOUNT DEPARTMENT STORES IN SMALL NORTHEASTERN TOWNS HAS BEEN BACK ON ITS FEET SINCE OCTOBER WHEN IT EMERGED FROM BANKRUPTCY LAW PROCEEDINGS BY ALL ACCOUNTS THE COMPANY IS SET TO DELIVER STELLAR FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED JANUARY TWENTY NINTH YET THE STOCK CAN'T GET OFF THE GROUND IT'S LANGUISHING AT NINETEEN AND THREE EIGHTHS A WHISKER SHY OF ITS TWENTY DOLLAR STATED VALUE IN THE WORK OUT PLAN AT THAT PRICE IT LOOKS DOWNRIGHT CHEAP TO SOME INVESTORS LEHMAN BROTHERS THE NEW YORK INVESTMENT BANK RECENTLY SNAPPED UP AN EIGHT POINT ONE PERCENT STAKE IN HILLS STORES FROM WESTINGHOUSE CREDIT CORPORATION OF PITTSBURGH A LENDER TO THE RETAILER'S ILL FATED NINETEEN EIGHTY FIVE LEVERAGED BUYOUT MEANWHILE FIDELITY INVESTMENTS THE BIG BOSTON MUTUAL FUND GROUP DOUBLED ITS HOLDINGS EARLIER THIS YEAR TO ABOUT SIXTEEN PERCENT OF SHARES OUTSTANDING BY BUYING MOST OF THE HOLDINGS OF APOLLO ADVISORS A NEW YORK QUOTE VULTURE QUOTE INVESTOR IN THE BANKRUPTCY WHAT LURES THESE SAVVY INVESTORS IS CASH FLOW AND HILLS HAS PLENTY OF IT CASH FLOW OR THE AMOUNT OF CASH THE BUSINESS GENERATES AFTER OPERATING EXPENSES BUT BEFORE SUCH EXPENSES AS INTEREST PAYMENTS TAXES AND DEPRECIATION OFTEN IS A BETTER GAUGE OF A REORGANIZED COMPANY'S PROSPECTS THAN ITS EARNINGS LARGE LOSSES AND OTHER CHARGES CAN SKEW REPORTED EARNINGS SAYS JEFFREY WIEGAND OF ROBOTTI AND ENG A NEW YORK FIRM EXPERT IN SPECIAL SITUATION INVESTING OFTEN THE BALANCE SHEET HAS BEEN RESTATED SO THAT BOOK VALUE IS MEANINGLESS ADDS MR. WIEGAND WHO TRACKS STOCKS OF FORMER BANKRUPTCY WARDS THESE DAYS HILLS' STOCK IS TRADING AT FOUR TIMES THE ONE HUNDRED THIRTY FIVE MILLION DOLLARS OR SO IN CASH FLOW IT GENERATED IN THE PAST FISCAL YEAR THAT'S CHEAPER THAN CURRENT MULTIPLES OF COMPARABLE DISCOUNTERS SUCH AS CALDOR OR BRADLEES WHICH HAVEN'T HAD THE CHANCE TO REVAMP THEMSELVES UNDER THE GENEROUS SHELTER OF BANKRUPTCY AND IT'S A STEAL COMPARED TO WHAT INVESTORS ARE PAYING TO BET ON RETAILERS STILL IN BANKRUPTCY COURT FOR INSTANCE WHILE SHARES OF R. H. MACY DON'T TRADE PUBLICLY ITS JUNK BONDS DO AND THEY'VE BEEN BID UP TO A LOFTY THIRTEEN TIMES ITS CURRENT CASH FLOW AND SEVEN TIMES NEXT YEAR'S OPTIMISTIC PROJECTIONS BUT RETAILERS CANNOT LIVE BY CASH FLOW ALONE ESPECIALLY DISCOUNTERS FACING THE LIKES OF WAL MART THAT'S BEEN THE HURDLE FACING HILLS WAL MART HAS BEEN STEADILY ENCROACHING ON THE DISCOUNTER'S TERRAIN ESPECIALLY IN PENNSYLVANIA WHERE HILLS ONCE RULED PRACTICALLY UNCHALLENGED STEAMROLLED BY THE ARKANSAS JUGGERNAUT DURING THE PAST RECESSION THE COMPANY'S LOSS WIDENED TO TWO HUNDRED SEVENTY THREE POINT SEVEN MILLION DOLLARS IN NINETEEN NINETY ONE TO HELP HILLS STAGE A COMEBACK CREDITORS SWEPT OUT MANAGEMENT AND BROUGHT IN A NEW TEAM LED BY MICHAEL BOZIC FORMER HEAD OF SEARS MERCHANDISE GROUP A MAIN DIVISION OF THE CHICAGO RETAILER EVEN THOUGH HILLS STILL WAS MIRED IN BANKRUPTCY COURT HE SET TO WORK ON AN AMBITIOUS REMODELING EFFORT DESPITE HOWLS FROM ANXIOUS CREDITORS THOSE HOWLS HAVE SINCE MUTED INTO CONTENTED PURRS AND NO WONDER HILLS MANAGEMENT OVERHAULED ITS BLAND STORES ACCORDING TO WHAT MANAGEMENT CALLS A WAL MART FORMULA AND SO FAR THE STRATEGY HAS WORKED SALES AT STORES OPEN MORE THAN A YEAR THE YARDSTICK BY WHICH RETAILERS MEASURE PERFORMANCE ROSE A BUOYANT TEN POINT TWO PERCENT IN DECEMBER FROM A YEAR AGO AND EVEN STORES PITTED DIRECTLY AGAINST WAL MART MANAGED TO EKE OUT SEVEN PERCENT SALES GROWTH GONE ARE HILLS'S ARBITRARY CLUSTERS OF CLOTHING ITS MASSES OF DISCOUNTED BRAND GOODS INSTEAD THE REMODELED STORES LURE THE COMPANY'S PREDOMINANTLY FEMALE SHOPPERS WITH BARGAIN PRICED HEALTH AND BEAUTY AIDS AND NEW STREAMLINED AISLES AT THE CENTER OF THOSE STORES ARE RESPLENDENT WITH DISCOUNTED CLOTHES WHICH ACCOUNT FOR A LARGE PART OF SALES MR. BOZIC EMBOLDENED BY HIS SUCCESS HAS EVEN BEEN EXPANDING HILLS'S PRIVATE LABEL AMERICAN SPIRIT WHICH NOW ENCOMPASSES NOT ONLY APPAREL BUT BATH ACCESSORIES AND GARBAGE PAILS HOWEVER THE FACELIFT HASN'T COME CHEAP IT HAS COST HILLS ABOUT SEVENTY FIVE MILLION DOLLARS SO FAR TO REDO HALF ITS STORES ABOUT SEVEN HUNDRED THOUSAND DOLLARS PER SITE BUT IT'S BEEN THE PERFECT DEFENSIVE STRATEGY AGAINST WAL MART SAYS ONE HAPPY SHAREHOLDER ONE WORD OF CAUTION HILLS ISN'T FOR THE FAINT HEARTED THE STOCK REMAINS NEGLECTED BY MOST WALL STREET ANALYSTS AND VOLUME IS VERY THIN WHILE THAT ADDS TO ITS ATTRACTIVENESS FOR SOME IT MEANS INVESTORS SHOULD BE PREPARED TO HOLD FOR THE LONGTERM RATHER THAN GO FOR A QUICK PROFIT THE DREAM OF OWNING A QUOTE HOME PLACE QUOTE IS ONE SHARED BY ALL YOUNG FARMERS MY WIFE AND I REALIZED OUR DREAM IN NINETEEN EIGHTY THREE WHEN WE BOUGHT OUR TWO HUNDRED TWENTY ACRES WE'VE RAISED A LOT OF CORN AND SOYBEANS THREE WONDERFUL CHILDREN AND STARTED A SMALL SIDE BUSINESS HERE IT'S BEEN A GREAT HOME BUT AS AN INVESTMENT IT'S BEEN LOUSY FARMLAND WAS A GOOD INVESTMENT FOR A GENERATION HERE IN NORTHWEST MISSOURI LAND VALUES QUINTUPLED IN THE TWENTY YEARS FROM NINETEEN SIXTY TO NINETEEN EIGHTY THEN PAUL VOLCKER PUT AN END TO THE FUN THE HIGH INTEREST RATE POLICIES OF THE FED IN THE EARLY EIGHTIES WERE SUCCESSFUL IN THE FIGHT AGAINST INFLATION THE FIRST CASUALTY WAS THE INFLATED LAND VALUES OF THE LATE SEVENTIES FARMLAND IN MANY AREAS LOST HALF ITS VALUE AND THE FARM CRISIS OF THE EARLY EIGHTIES WAS THE RESULT THE LAND PRICE INFLATION OF THE SEVENTIES HAD ITS ROOTS INSIDE AND OUTSIDE AGRICULTURE DEMAND FOR FARM PRODUCTS INCREASED BECAUSE OF DETENTE AND CROP FAILURES WORLD WIDE WE ENDURED DROUGHTS AND OTHER PRODUCTION PROBLEMS DOMESTICALLY THAT INCREASED COMMODITY PRICES MOST IMPORTANT REAL INTEREST RATES WERE NEGATIVE CREDIT TO FARMERS WAS SUBSIDIZED AND FARMLAND WAS SEEN AS THE PERFECT INFLATION HEDGE AFTER THE BOTTOM DROPPED OUT OF THE MARKET AND A WHOLE GENERATION OF FARMERS HAD TO SEEK EMPLOYMENT ELSEWHERE A MORE SOBER APPROACH TO REAL ESTATE VALUATION PREVAILED FARM INCOMES STABILIZED BUT FARMLAND PRICES DID NOT RECOVER NOW THE FACTORS THAT KEPT FARMLAND PRICES LOW FOR A DECADE ARE BEGINNING TO CHANGE AND FARM REAL ESTATE MAY YET AGAIN BECOME A FAVORITE LAST FALL HOWEVER IN ANOTHER OBSTACLE TO A TURNAROUND THE CLINTON ADMINISTRATION DELIVERED A BLOW TO FARMERS IN THE MIDWEST WITH THE ANNOUNCEMENT THAT PUBLIC MONEY WOULD NOT BE AVAILABLE TO REPAIR ALL THE LEVEES DAMAGED BY FLOODS MANY ENVIRONMENTALISTS APPLAUDED WITH VISIONS OF A MASSIVE WETLAND STRETCHING ACROSS MISSOURI BY DECEMBER FEWER THAN TEN PERCENT OF THE SEVERAL HUNDRED DAMAGED LEVEES HAD BEEN REPAIRED LEAVING SOME FOUR HUNDRED EIGHTY THOUSAND ACRES VULNERABLE TO FUTURE FLOODS IRONICALLY WHILE FUNDS TO REPAIR LEVEES ARE LIMITED THERE SEEMS TO BE NO LIMIT ON FUNDS FOR THE WETLANDS RESERVE PROGRAM AND MANY FARMERS WITH SEVERE FLOOD DAMAGE ARE SIGNING CONTRACTS WITH THE FEDERAL GOVERNMENT TO TAKE THEIR LAND OUT OF PRODUCTION PERMANENTLY AT THE SAME TIME FARMERS IN CALIFORNIA LAST YEAR LOST A CONSIDERABLE PORTION OF THEIR IRRIGATION WATER RIGHTS ONE POINT TWO FIVE MILLION ACRE FEET OF WATER AS FEDERAL AUTHORITIES ACTED TO PROTECT FISH WILDLIFE AND WETLANDS OTHER FARMERS ARE NOW ABLE TO SELL WATER RIGHTS FOR USES MORE VALUABLE THAN AGRICULTURE DANIEL BEARD THE NEW COMMISSIONER OF THE FEDERAL BUREAU OF RECLAMATION UNFORTUNATELY HAS SIGNALED HIS WILLINGNESS TO LISTEN SYMPATHETICALLY TO PLANS TO DIVERT IRRIGATION WATER AWAY FROM FARMERS AND TOWARD OTHER USES HE SAYS THAT FARMERS CAN EXPECT TO PAY MORE FOR LESS WATER AS MORE EMPHASIS IS PUT ON THE NEEDS OF CITIES AND ENDANGERED SPECIES BECAUSE THE ENDANGERED SPECIES ACT PROTECTS THE HABITATS OF VARIOUS LISTED SPECIES FARMERS FIND THAT WHAT THEY ONCE CONSIDERED SIMPLY A CORNFIELD IS NOW DESIGNATED A HABITAT NO LONGER AVAILABLE FOR FARMING IN THIS VEIN THE COASTAL CALIFORNIA GNATCATCHER THE RED COCKADED WOODPECKER AND THE DESERT TORTOISE ITS SIX POINT SIX MILLION ACRE HABITAT COULD LIMIT CATTLE GRAZING OVER AREAS IN SEVERAL STATES ARE AS LIKELY TO BE DISCUSSED DOWN AT THE LOCAL COFFEE SHOP AS IS THE NEWEST JOHN DEERE MACHINERY OR HYBRID CORN NOW CONGRESS IS DEBATING A BILL TO FUND A NATIONWIDE BIOLOGICAL SURVEY TO LIST ALL BIOLOGICAL RESOURCES ON BOTH PUBLIC AND PRIVATE LANDS NO DOUBT MORE THREATENED SPECIES WILL BE FOUND MAKING LESS LAND AVAILABLE FOR PRODUCTION FARMERS EVERYWHERE FACE MORE REGULATION AS THEY ATTEMPT TO USE THE TECHNOLOGY THAT HAS SO DRAMATICALLY INCREASED YIELDS IN THE PAST IN SEVERAL WATERSHEDS WHERE NITRATES ARE A PROBLEM FARMERS MUST LIMIT THEIR USE OF FERTILIZER THE CLINTON ADMINISTRATION HAS ANNOUNCED A POLICY WHEREBY THE BENEFITS OF PESTICIDES WON'T BE CONSIDERED DURING A PRODUCT'S APPROVAL PROCESS PESTICIDES WITH EVEN NEGLIGIBLE RISK MUST BE WITHDRAWN EXCEPT IN EXCEPTIONAL CASES THE ADMINISTRATION ALSO WANTS TO BAN THE USE OF ALL HIGH RISK PESTICIDES BY THE YEAR TWO THOUSAND INTERIOR SECRETARY BRUCE BABBITT HAS BEEN INVOLVED IN A YEARLONG EFFORT TO DOUBLE GRAZING FEES ON FEDERAL LANDS COUCHED IN TERMS OF DEFICIT REDUCTION THE REAL BATTLE IS BETWEEN RANCHERS WHO WOULD UTILIZE PUBLIC LANDS AND ENVIRONMENTALISTS WHO WOULD RETURN THE LAND TO THE WILD IF THE ENVIRONMENTALISTS ARE SUCCESSFUL MUCH OF THE WEST WILL NO LONGER BE USED FOR AGRICULTURE REAL ESTATE BROKERS AND PEOPLE INVOLVED IN THE CATTLE INDUSTRY HERE IN MISSOURI ARE RECEIVING CALLS FROM WESTERN RANCHERS INTERESTED IN MOVING THEIR OPERATIONS TO THE MIDWEST IN CASE THEY LOSE THE RIGHT TO RANCH AS THEY HAVE FOR OVER A CENTURY THE BATTLE IS FAR FROM OVER BUT THE DIRECTION OF CHANGE IS OMINOUS MISGUIDED ENVIRONMENTAL CONCERNS WILL DECREASE THE AMOUNT OF LAND BEING FARMED AND WILL DECREASE PRODUCTION ON THE LAND REMAINING IN USE WHILE THE LAND PRICE BOOM IN THE SEVENTIES WAS FUELED BY A BIG INCREASE IN FARM EXPORTS THE EXPORT MARKET FOR AMERICAN FARMERS STUMBLED IN THE EIGHTIES AS THE COMMON MARKET CAPTURED MANY OF OUR CUSTOMERS WITH HUGE EXPORT SUBSIDIES BUT THIS SITUATION MAY CHANGE THE GENERAL AGREEMENT ON TARIFFS AND TRADE REQUIRES A TWENTY PERCENT DROP IN EUROPEAN SUBSIDIES TO BE PHASED IN OVER SEVERAL YEARS ALONG WITH A FIRST TIME EVER ENTRY FOR AMERICAN RICE IN THE JAPANESE MARKET THE EXPORT PICTURE FOR OUR AGRICULTURAL PRODUCTS HASN'T BEEN THIS BRIGHT FOR A DECADE IN ADDITION THE CLINTON ADMINISTRATION'S PROGRAM CALLING FOR THE USE OF ETHANOL FUEL MADE PRIMARILY FROM CORN IN CITIES THAT ARE NOT IN COMPLIANCE WITH CLEAN AIR STANDARDS WILL CREATE A HUGE DEMAND FOR CROPS THE PRICE OF GOLD IS UP AND INTEREST RATES ARE LOW ALTHOUGH INFLATION HEDGES RECENTLY HAVE BEEN OUT OF STYLE OWNING FARMLAND IS STILL DESIRABLE WITH CURRENTLY LOW INTEREST RATES AND A POSSIBLE RATE OF RETURN OF AROUND EIGHT PERCENT FARMLAND IS IN FACT NOT A BAD INVESTMENT IN THE LATE EIGHTEEN HUNDREDS FARMERS ALL ACROSS AMERICA LIT CANDLES IN SUPPORT OF A SPECULATOR WHO WAS ATTEMPTING TO CORNER THE MARKET IN WHEAT AND WHO WOULD THEREBY BOOST THEIR FORTUNES TODAY FARMERS ARE FEELING THE PINCH FROM AN ENVIRONMENTAL ETHOS THAT THREATENS TO FORCE MANY OUT OF BUSINESS BUT FOR THE FEW SURVIVORS THE PROSPECTS FOR AGRICULTURE HAVE NEVER BEEN BRIGHTER MAYBE WE FARMERS SHOULD BE LIGHTING CANDLES FOR THE SIERRA CLUB AND THE NATIONAL WILDLIFE FEDERATION MR. HURST FARMS AND RUNS A FLOWER NURSERY IN WESTBORO MISSOURI SPAIN'S STATE RUN ELECTRICITY COMPANY EMPRESA NACIONAL DE ELECTRICIDAD S. A. OR ENDESA SAID ITS CONSOLIDATED NET INCOME ROSE NINE POINT NINE PERCENT IN NINETEEN NINETY THREE TO ONE HUNDRED SIXTEEN POINT EIGHT ONE BILLION PESETAS EIGHT HUNDRED NINETEEN MILLION DOLLARS FROM ONE HUNDRED SIX POINT THREE OH BILLION PESETAS IN NINETEEN NINETY TWO WEAKNESS OF ELECTRICITY DEMAND IN THE FIRST TEN MONTHS OF NINETEEN NINETY THREE HURT MADRID BASED ENDESA WHICH NOTED TOTAL DEMAND IN THE SECTOR CREPT ONLY ZERO POINT ONE PERCENT HIGHER DURING THE YEAR MEANWHILE LOW HYDRAULIC PRODUCTION DUE TO THE DROUGHT THAT PARCHED MUCH OF SPAIN UNTIL THE AUTUMN OF NINETEEN NINETY THREE FORCED ENDESA TO SWITCH TO MORE COSTLY COAL AND FOSSIL FUEL POWERED METHODS OF PRODUCTION THE COMPANY NOTED MY PERSONAL TRUST AND ADMIRATION FOR PRIME MINISTER HOSOKAWA HAS ONLY INCREASED AND FOR THE GOVERNMENT BECAUSE OF POLITICAL REFORM BECAUSE JAPAN EXERCISED LEADERSHIP IN THE URUGUAY ROUND BECAUSE OF THE INITIATIVES ON CONSTRUCTION AND RICE BECAUSE OF THE FIGHT FOR TAX REFORM AND STIMULUS BECAUSE OF THE DEREGULATION EFFORT I THINK THAT JAPAN IS MOVING IN THE RIGHT DIRECTION IT COULD BE BUT I THINK THEY THE JAPANESE WOULD HAVE TO THINK LONG AND HARD ABOUT IT LET'S SEE ON THE ONE HAND THE PRESIDENT AS STATESMAN SENSIBLY SAYS HE WANTS TO SUPPORT THE FIRST TRULY REFORMIST GOVERNMENT IN RECENT JAPANESE HISTORY ON THE OTHER HAND THE PRESIDENT AS DOMESTIC POL RATTLES HIS SABER OVER QUOTE SANCTIONS QUOTE AND EVEN A QUOTE TRADE WAR QUOTE WE HOPE MR. CLINTON UNDERSTANDS THAT THE LATTER COULD UNDERMINE THE GOALS OF THE FORMER WITH MORE RISKS TO THE U. S. JAPAN RELATIONSHIP THAN APPEAR ON THE SURFACE WE SUPPOSE IT'S ALWAYS POSSIBLE THAT THERE IS SOME DEVIOUS MACHIAVELLIAN STRATEGY AT WORK HERE THOUGH WE HAVE A HARD TIME SEEING IT FOR ONE THING THE ADMINISTRATION'S FOREMOST MACHIAVELLI HAS BEEN PREOCCUPIED WITH HEALTH CARE MOREOVER IF MR. CLINTON'S GOAL WAS TO FORCE JAPAN'S HAND THROUGH OUTSIDE PRESSURE IT SEEMS TO HAVE BACKFIRED PRIME MINISTER HOSOKAWA HAS SEEN HIS POPULARITY SOAR FOR REJECTING U. S. ULTIMATUMS MORE LIKELY MR. CLINTON AND HIS AIDES HAVE TRAPPED THEMSELVES INTO A POLITICAL AND DIPLOMATIC BOX CANYON THEY MARCHED INTO OFFICE VOWING TO GET TOUGH WITH JAPAN A LINE THAT GOES DOWN WELL IN DEMOCRATIC PARTY AND CERTAIN CORPORATE CIRCLES LAST SUMMER THEY HYPED AT HYPE MEISTER DAVID GERGEN'S URGING A FRAMEWORK AGREEMENT THAT WAS SUPPOSED TO BE A SEA CHANGE IN TRADE POLICY IN THE MEANTIME JAPAN'S ENTIRE WORLD CHANGED BUT THE OBLIVIOUS CLINTONITES STILL MARCH INTO THE CANYON WALL THE LOGIC OF THE NEW CLINTON POLICY WAS BASED ON THE PREMISE OF THE SO CALLED REVISIONISTS SUCH AS JAMES FALLOWS AND WHITE HOUSE CHIEF ECONOMIST LAURA TYSON THAT JAPAN NEVER CHANGES BUT OF COURSE JAPAN HAS NOW UNDERGONE A DRAMATIC IF FAR FROM COMPLETE PERESTROIKA AS PETER DRUCKER OBSERVES JAPAN INCORPORATED IS DEAD OR AT LEAST DYING U. S. INDUSTRIES THAT WERE GOING TO BE WIPED OUT BY JAPAN SEMICONDUCTERS ARE NOW ASCENDANT AND JAPAN'S ECONOMY SUPPOSEDLY INVINCIBLE HAS BEEN MIRED IN AN EXTENDED SLUMP MORE IMPORTANT THE POLITICAL CULTURE THAT WAS THE BASIS FOR JAPANESE MERCANTILISM HAS ALSO BEEN TURNED UPSIDE DOWN MR. HOSOKAWA AND HIS UNSTEADY COALITION OF REFORMERS HAVE HAD TO MANAGE MORE CHANGE THAN MR. CLINTON HAS EVEN CONTEMPLATED THE PRIME MINISTER HAS ALREADY BROKEN THE GERRYMANDER THAT PRODUCED THE ROTTEN BOROUGHS THAT SUPPORTED JAPAN'S CORRUPT NEXIS OF POLITICS AND BUSINESS ISN'T THIS WHAT THE U. S. WANTS MR. CLINTON'S WORDS SHOW HE UNDERSTANDS SOME OF THIS BUT HIS ACTIONS SUGGEST HE'LL KNOCK MR. HOSOKAWA AROUND EVEN AS HE PRAISES HIM MR. PRIME MINISTER LET US INTRODUCE YOU TO ROY VAGELOS ONE BRUITED POSSIBILITY IS TO FURTHER HAMMER THE DOLLAR AGAINST THE YEN A PRIMITIVE FORM OF MERCANTILISM THAT WILL ONLY MAKE IT MORE DIFFICULT FOR JAPAN'S EXPORT INDUSTRIES TO RECOVER THEN THERE'S THE OLD STANDBY OF IMPOSING QUOTE SANCTIONS QUOTE READ BORDER TAXES TO PUNISH AMERICAN CONSUMERS BECAUSE THE JAPANESE PUNISH THEIRS THIS DESPITE THE FACT THAT EVEN THE JAPAN BASHING AMERICAN AUTOMAKERS ARE REPORTING RECORD PROFITS AND ALL BECAUSE THE JAPANESE DON'T WANT TO AGREE TO QUANTITATIVE AND QUALITATIVE INDICATORS FOR JUDGING TRADE FLOWS MR. CLINTON'S TRADE REP MICKEY KANTOR INSISTS THESE AREN'T NUMERICAL TARGETS BUT WHATEVER YOU CALL THEM THEY SURE LOOK LIKE MANAGED TRADE WE'D ALSO ADD BY THE WAY THE MORE SUBTLE SLIGHTS OF PROTOCOL THAT THE CLINTON ADMINISTRATION SEEMS TO BE PRACTICING AGAINST JAPAN WE NOTICED THAT HILLARY RODHAM CLINTON DIDN'T THINK IT IMPORTANT ENOUGH TO BE IN TOWN TO ESCORT THE WIFE OF JAPAN'S PRIME MINISTER DURING LAST WEEK'S SUMMIT SHE APPARENTLY COULDN'T DELAY HER OLYMPIC T. V. EXPOSURE BY EVEN A COUPLE OF DAYS THE JAPANESE NOTICED TOO BEYOND ANY TRADE FIGHT THE BROADER DANGER HERE IS THAT THE U. S. JAPAN RELATIONSHIP WILL FRAY AT A DELICATE TIME WITH A NUCLEAR NORTH KOREA LOBBING TEST MISSILES AT TOKYO AND WITH CHINA ON THE RISE THE LAST THING AMERICA NEEDS IS A JAPAN THAT DECIDES IT CAN'T TRUST AMERICAN FRIENDSHIP YET MR. CLINTON'S POLICY IS LIKELY TO ENCOURAGE AN ANTI AMERICAN NATIONALISM THAT HAS EMERGED IN JAPANESE POLITICS IN THE PAST IT'S TRUE AS WE'VE BEEN SAYING FOR YEARS THAT JAPAN'S BUREAUCRATS STILL HAVE TOO MUCH POWER BUT THAT WON'T CHANGE BECAUSE BILL CLINTON DEMANDS IT JAPAN'S POLITICAL ECONOMY IS CHANGING BECAUSE THE JAPANESE PEOPLE ARE FORCING IT TO WHY GET IN THE WAY F. M. C. CORPORATION SAID IT HAS AGREED TO ACQUIRE THE AUTOMATED VEHICLE SYSTEMS GROUP OF CATERPILLAR INDUSTRIAL INCORPORATED A MENTOR OHIO AUTOMATED GUIDED VEHICLE SYSTEMS SUPPLIER TERMS WEREN'T DISCLOSED THE CHICAGO MACHINERY AND CHEMICALS CONCERN SAID MOST OF CATERPILLAR INDUSTRIAL'S BUSINESS RELATES TO SELF GUIDED VEHICLES THAT MOVE UNIT LOADS BETWEEN WORK CENTERS OR WAREHOUSES CATERPILLAR INDUSTRIAL IS A UNIT OF CATERPILLAR INCORPORATED PEORIA ILLINOIS F. M. C. SAID THE AUTOMATED VEHICLE GROUP WILL OPERATE AS A UNIT OF ITS ENERGY AND TRANSPORTATION EQUIPMENT GROUP'S MATERIAL HANDLING SYSTEMS DIVISION THE COMPANY SAID COMPLETION OF THE DEAL IS SUBJECT TO APPROVAL OF A DEFINITIVE AGREEMENT BY BOTH COMPANIES AND IS EXPECTED TO BE COMPLETED BY THE END OF THE FIRST QUARTER NINETEEN NINETY FOUR GREG GUMBEL SEEMS TO HAVE DISCOVERED THE SECRET OF GOOD ANCHORING KEEP A LOW PROFILE INSTEAD OF HOGGING AIR TIME MR. GUMBEL IS RELATIVELY RARELY SEEN AND WHEN HE DOES APPEAR HE IS EFFECTIVE JUST CONTRAST TWO INTERVIEWS WITH DOWNHILL WINNER TOMMY MOE ON SUNDAY NIGHT MR. GUMBEL'S WAS TO THE POINT AND INTERESTING ON MONDAY MORNING HARRY SMITH'S WAS AWKWARD AND TEDIOUS SPEAKING OF TEDIOUS C. B. S. BROUGHT A LITTLE TASTE OF TABLOID T. V. TO THE GAMES BY AIRING A GARISH RE CREATION OF THE NEO NAZI ATTACK ON AMERICAN LUGERS LAST YEAR IN GERMANY MAKES ONE SHUDDER AT WHAT THE NETWORK COULD DO WHEN TONYA HARDING ARRIVES IN LILLEHAMMER C. B. S. GAVE MORE AIR TIME TO THE MEN'S DOWNHILL THAN IT HAS ALLOTTED TO ALPINE EVENTS IN PAST OLYMPICS CAN IT BE THE NETWORK REALIZES FANS WANT TO SEE LOTS OF SKIING OR IS IT JUST THAT MR. MOE CARRIED OFF THE GOLD C. B. S. ALLOWED A BIT OF DRAMA ON ITS MORNING SHOW YESTERDAY BY AIRING LIVE DAN JANSEN'S LATEST OLYMPIC DISAPPOINTMENT C. B. S.'S SUNDAY PRIME TIME AUDIENCE WAS THE LARGEST EVER FOR A SINGLE NIGHT OF OLYMPICS COVERAGE WINTER OR SUMMER AN ESTIMATED EIGHTY TWO MILLION PEOPLE WATCHED ALL OR PART OF THE COVERAGE C. B. S. DREW TWENTY NINE POINT TWO PERCENT OF THE NATION'S T. V. HOUSEHOLDS COMPARED WITH TWENTY THREE POINT FIVE PERCENT FOR THE FIRST SUNDAY NIGHT OF THE NINETEEN NINETY TWO WINTER GAMES AS COMPILED BY A. C. NIELSEN COMPANY IN OVERNIGHT RATINGS FROM THIRTY MAJOR CITIES C. B. S. ONCE AGAIN ROUTED ITS RIVALS WITH RATINGS OF TWENTY EIGHT POINT SEVEN PERCENT TO TEN POINT SEVEN PERCENT EACH FOR N. B. C. AND A. B. C. SCOTT HAMILTON IS AMAZING THE SKATING COMMENTATOR KNOWS HOW OTHER PEOPLE ARE FEELING QUOTE SHE'S NOT FEELING ANY PAIN RIGHT NOW I GUARANTEE QUOTE HE REMARKED AS ISABELLE BRASSEUR OF CANADA SKATED WITH BRUISED RIBS IN THE PAIRS COMPETITION BUT MR. HAMILTON'S POWERS PALE BESIDE THOSE OF TAMARA MOSKVINA COACH OF THE GOLD MEDAL PAIRS WINNERS AT ALBERTVILLE AFTER HER SKATERS SUFFERED THROUGH A MISERABLE PRACTICE SHE ASSURED C. B. S. CAMERAS THAT SHE WOULD HYPNOTIZE THEM BEFORE THEY SKATED SHE DECLARED THAT THE HYPNOTISM HAD WORKED AND THEY SKATED BRILLIANTLY THE U. S. JAPAN TRADE DISPUTE SENT THE DOLLAR PLUNGING ALMOST FOUR PERCENT AGAINST THE YEN TRADERS AND INVESTORS SPECULATED THAT THE CLINTON ADMINISTRATION WILL TRY USING A STRONGER YEN TO PROD JAPAN TO OPEN ITS MARKETS MORE EXPANSIVELY TO U. S. GOODS FOLLOWING THE COLLAPSE OF LAST WEEK'S TRADE TALKS U. S. OFFICIALS SAID THEY DIDN'T INTEND TO JAWBONE THE YEN HIGHER BUT TRADERS AND ANALYSTS RETORTED THAT IT DIDN'T MATTER QUOTE THE U. S. DOESN'T HAVE TO TALK THE DOLLAR DOWN THE CURRENCY MARKET IMPLICITLY BELIEVES THIS IS WHAT WASHINGTON WANTS SO THE ADMINISTRATION HAS TO JUST SIT BACK AND LET THIS HAPPEN SAID MICHAEL R. ROSENBERG AN INTERNATIONAL ECONOMIST AT MERRILL LYNCH AND COMPANY IN NEW YORK ON MONDAY NIGHT ON THE HEELS OF THE DOLLAR'S SHARP FALL THE U. S. TREASURY SAID THAT EXCHANGE RATE POLICY WAS UNCHANGED THE DOLLAR SHOWED LITTLE IMMEDIATE RESPONSE IN TOKYO TRADING HOWEVER UNLESS THE MARKET COMES TO BELIEVE THAT THE ADMINISTRATION FEELS THE DOLLAR HAS FALLEN FAR ENOUGH SOME TRADERS AND ECONOMISTS PREDICTED THE U. S. CURRENCY COULD TUMBLE BELOW ONE HUNDRED YEN I THINK THERE IS A GOOD POSSIBILITY THE DOLLAR COULD FALL BELOW NINETY FIVE YEN SAID LAWRENCE A. VEIT AN INTERNATIONAL ECONOMIST AT BROWN BROTHERS HARRIMAN AND COMPANY IN NEW YORK WE HAVE AN EXTRAORDINARY NONMEETING OF MINDS ON THE TRADE ISSUE THE JAPANESE DON'T FEEL THEY ARE RESPONSIBLE FOR THE U. S. TRADE DEFICIT THE U. S. FEELS THE JAPANESE ARE RESPONSIBLE BUT ANYBODY WITH EXPERIENCE IN DOING BUSINESS WITH JAPAN KNOWS THEIR MARKETS AREN'T AS OPEN TO US AS OURS ARE TO THEM HE ADDED ONE OF THE FEW LEVERS THE U. S. CAN USE TO PUT PRESSURE ON JAPAN IS TO CAUSE THE DOLLAR TO DEPRECIATE AGAINST THE YEN IN LATE NEW YORK TRADING MONDAY THE DOLLAR WAS QUOTED AT ONE HUNDRED TWO POINT SIX FIVE YEN WELL BELOW ONE HUNDRED SIX POINT EIGHT FIVE YEN LATE FRIDAY THE POST WORLD WAR TWO LOW WAS ONE HUNDRED POINT FOUR OH YEN TO THE DOLLAR SET AUGUST SEVENTEENTH SO FAR THIS YEAR THE DOLLAR IS OFF EIGHT PERCENT AGAINST JAPAN'S CURRENCY THE DOLLAR ALSO FELL TO ONE POINT SEVEN TWO SEVEN THREE MARKS IN NEW YORK MONDAY FROM ONE POINT SEVEN FIVE FOUR THREE MARKS LATE FRIDAY ALMOST ALL MAJOR CURRENCIES ROSE AGAINST THE DOLLAR MONDAY THE POUND STRENGTHENED TO ONE POINT FOUR EIGHT FOUR OH DOLLARS FROM ONE POINT FOUR SIX TWO FIVE DOLLARS BEFORE THE WEEKEND THE DOLLAR BEGAN FALLING FRIDAY AFTER TRADE TALKS IN WASHINGTON BETWEEN PRESIDENT CLINTON AND PRIME MINISTER MORIHIRO HOSOKAWA COLLAPSED THE U. S. WANTS TO REDUCE ITS HUGE TRADE DEFICIT WITH JAPAN BY SETTING SPECIFIC NUMERICAL TRADE TARGETS SOMETHING THE JAPANESE REFUSE TO DO ON MONDAY LAURA TYSON THE HEAD OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID THE DOLLAR'S DECLINE SHOULDN'T HAVE A SIGNIFICANT IMPACT ON U. S. PRICES TRADERS INTERPRETED HER REMARKS AS MEANING THAT THE ADMINISTRATION HAD NO PROBLEM WITH THE U. S. CURRENCY'S PLUNGE DURING THE NEW YORK TRADING DAY THE CLINTON ADMINISTRATION WATCHED PASSIVELY AS THE DOLLAR FELL AGAINST THE YEN IT DIDN'T SHOW UNUSUAL CONCERN THE ADMINISTRATION'S STRATEGY WAS DETERMINED TO MAINTAIN QUOTE RADIO SILENCE QUOTE AND NOT COMMENT ON THE YEN'S ACTIVITY A TREASURY OFFICIAL SAID ON MONDAY NIGHT IN WASHINGTON HOWEVER THE TREASURY ISSUED ITS STATEMENT HOPING TO CALM THE FOREIGN EXCHANGE MARKETS THE STATEMENT ATTRIBUTED TO A SENIOR TREASURY OFFICIAL AND RELEASED JUST IN TIME FOR THE TUESDAY OPENING OF THE TOKYO MARKETS SAID OUR EXCHANGE RATE POLICY IS UNCHANGED FROM THAT ALREADY ARTICULATED BY TREASURY SECRETARY LLOYD BENTSEN WE DO NOT BELIEVE IN ARTIFICIALLY MANIPULATING EXCHANGE RATES AT MIDDAY TUESDAY IN TOKYO AFTER THE STATEMENT'S RELEASE THE DOLLAR STOOD AT ONE HUNDRED TWO POINT FOUR EIGHT YEN OFF SLIGHTLY FROM THE NEW YORK QUOTE OF ONE HUNDRED TWO POINT SIX FIVE YEN THE STEEPNESS OF MONDAY'S DECLINE CAUGHT THE MARKET BY SURPRISE THE BAD WEATHER IN NEW YORK PREVENTED PEOPLE FROM SELLING DOLLARS ON FRIDAY SAID JULIAN SYMMONS HEAD TRADER AT CITIBANK IN LONDON HE WARNED THAT MANY INSTITUTIONAL INVESTORS THAT HAD BEEN FUNDING THEIR PURCHASES OF FOREIGN NON JAPANESE BONDS BY BORROWING YEN AT LOW INTEREST RATES COULD BE HURT BY THE SUDDEN STEEP RISE IN JAPAN'S CURRENCY BUT THE BIGGEST DAMAGE COULD BE TO JAPAN'S ECONOMY IT'S GOING TO HURT THE JAPANESE ECONOMY PREDICTED MERRILL LYNCH'S MR. ROSENBERG TRADE ADJUSTMENT IF IT'S GOING TO SUCCEED IN THE LONG RUN HAS TO CAUSE PAIN IF THERE'S NO PAIN THERE'S NO ADJUSTMENT HE ADDED THAT TO AMELIORATE THE IMPACT OF THE STRONGER YEN ON JAPAN'S ECONOMY THE COUNTRY'S CENTRAL BANK MIGHT CUT ITS KEY DISCOUNT RATE ONE POINT TWO FIVE PERCENT OR EVEN ONE PERCENT FROM ITS CURRENT ONE POINT SEVEN FIVE PERCENT QUOTE ANYWHERE THAT JAPAN COMPETES GLOBALLY EITHER IN JAPAN OR ABROAD THE STRONGER YEN IS GOING TO HURT JAPANESE COMPETITIVENESS QUOTE SAID MR. VEIT OF BROWN BROTHERS HARRIMAN IT'S GOING TO SEVERELY DAMAGE THE MANUFACTURING SECTOR REFERRING TO TOKYO'S RECENTLY ANNOUNCED ONE HUNDRED FORTY BILLION DOLLARS TO ONE HUNDRED FIFTY BILLION DOLLAR PROGRAM TO STIMULATE ITS MORIBUND ECONOMY CITIBANK'S MR. SYMMONS SAID ALL THE BENEFIT JAPAN HOPED TO GET VIA FISCAL STIMULUS BY PUMPING MONEY INTO THE ECONOMY IS NEGATED BY THE STRONG YEN THE MIGHTIER YEN ALSO IS DEVALUING THE PORTFOLIOS OF JAPANESE INSTITUTIONAL INVESTORS WHICH SINCE JANUARY NINETEEN EIGHTY SIX HAVE MADE NET PURCHASES OF ABOUT FIVE HUNDRED SEVENTY BILLION DOLLARS OF FOREIGN STOCKS AND BONDS ACCORDING TO HIGH FREQUENCY ECONOMICS A NEW YORK ECONOMIC CONSULTING FIRM THAT MEANS THAT EACH ONE YEN RISE AGAINST THE DOLLAR EQUALS ROUGHLY A LOSS OF SIX BILLION DOLLARS TO THESE INSTITUTIONS IN THE VALUE OF THEIR FOREIGN SECURITIES HOLDINGS SAID CARL WEINBERG THE FIRM'S CHIEF ECONOMIST THUS JAPAN'S LIFE INSURANCE COMPANIES TRUST BANKS AND OTHER BIG INVESTORS HAVE SEEN THEIR PORTFOLIOS SHRINK BY MORE THAN THIRTY BILLION DOLLARS JUST SINCE THURSDAY THEORETICALLY A STRONGER YEN SHOULD EVENTUALLY HELP REDUCE JAPAN'S HUGE TRADE SURPLUS WITH THE U. S. BY INCREASING THE COSTS OF JAPANESE PRODUCTS AND LOWERING THE PRICES OF U. S. GOODS ESPECIALLY IN THIRD MARKETS NEITHER THE U. S. NOR JAPAN A STRONGER YEN IS THE EQUIVALENT TO HIGHER TARIFFS ON JAPANESE EXPORTS TO THE U. S. AND IS THE EQUIVALENT TO A SUBSIDY ON U. S. EXPORTS TO JAPAN SAID MR. ROSENBERG OF MERRILL LYNCH INFLATION FACTOR FOR U. S. ALTHOUGH NOT AN IMMEDIATE CONCERN A WEAK DOLLAR COULD ALSO CONTRIBUTE TO U. S. INFLATION THAT'S BECAUSE AMERICAN MANUFACTURERS MIGHT USE THE HIGHER PRICES ON JAPANESE PRODUCTS AS AN EXCUSE TO RAISE THEIR OWN PRICES A WEAKER DOLLAR COULD ALSO HAVE A SIGNIFICANT IMPACT ON U. S. AND JAPANESE STOCK PRICES CORPORATE EARNINGS AND THE VALUE OF U. S. INVESTORS' HOLDINGS OF JAPANESE STOCKS AND BONDS BY MAKING THEM MORE COMPETITIVE AND BY MAKING THEIR SALES AND EARNINGS IN JAPAN WORTH MORE WHEN TRANSLATED INTO DOLLARS A FALLING DOLLAR CAN FATTEN U. S. COMPANIES' BOTTOM LINES IMPROVED EARNINGS IN TURN CAN BOOST STOCK PRICES OF SOME MAJOR U. S. MULTINATIONAL CORPORATIONS A WEAKER DOLLAR ALSO INCREASES THE VALUE OF A U. S. INVESTOR'S JAPANESE PORTFOLIO THAT'S BECAUSE JAPANESE STOCKS AND BONDS WILL BE WORTH MORE WHEN TRANSLATED INTO U. S. CURRENCY BY CONTRAST A WEAKER DOLLAR CAN DAMAGE THE EARNINGS OF JAPANESE COMPANIES BY HURTING SALES AND MAKING THOSE SALES WORTH LESS IN YEN TERMS THAT CAN LEAD TO LOWER STOCK PRICES THAT'S EXACTLY WHAT HAPPENED YESTERDAY WHEN THE TOKYO STOCK MARKET FELL ONE POINT SIX THREE PERCENT AS MEASURED BY THE JAPANESE PORTION OF THE DOW JONES WORLD STOCK INDEX BUT BECAUSE OF THE YEN'S STEEP ASCENT TOKYO SHARES WERE UP TWO POINT FOUR FIVE PERCENT IN DOLLAR TERMS SO FAR THIS YEAR THE DOW JONES EQUITY MARKET INDEX FOR JAPAN IS UP TEN POINT ONE PERCENT IN YEN AND NINETEEN POINT NINE PERCENT IN DOLLARS MAJOR SUPPORT FOR THE YEN COMES FROM JAPAN'S TRADE SURPLUS WHICH MR. WEINBERG OF HIGH FREQUENCY ECONOMICS ESTIMATES IS RUNNING AT ABOUT ONE HUNDRED TWENTY BILLION DOLLARS A YEAR ROUGHLY HALF IS ATTRIBUTABLE TO THE U. S. HE SAYS IN ADDITION HE NOTED THAT QUOTE JAPANESE INSTITUTIONS HAVE CUT BACK THEIR PURCHASES OF FOREIGN SECURITIES QUOTE PURCHASES THAT OTHERWISE WOULD HAVE HELPED TO WEAKEN THE YEN WHAT'S MORE SAYS MR. ROSENBERG OF MERRILL LYNCH THE YEN HAS FALLEN BELOW ITS TWO HUNDRED DAY MOVING AVERAGE AGAINST THE DOLLAR THAT MEANS THE MANY TRADERS AND INVESTORS WHO USE CHARTS TO PREDICT CURRENCY MOVEMENTS WILL BE BUYING THE CURRENCY NONETHELESS SOME TRADERS WARNED INVESTORS AGAINST BETTING THAT RIDING THE YEN HIGHER WAS A SMOOTH JOURNEY TO FATTER PROFITS ANY STATEMENT BY FED OR TREASURY OFFICIALS THAT THEY DON'T WANT THE YEN TO CLIMB ANY FURTHER COULD GET YOU A QUICK REVERSAL BECAUSE THERE ARE LOT OF PEOPLE SHORT DOLLARS OUT THERE SAID PAT MAGILL CHIEF CORPORATE DEALER AT DAIWA EUROPE BANK LIMITED IN LONDON TRADERS SAID THAT THE BANK OF JAPAN SOLD YEN AND BOUGHT DOLLARS DURING EARLY ASIAN TRADING TO TRY TO HALT THE YEN'S RISE BUT ANALYSTS DISAGREE ABOUT HOW SERIOUS WAS THE INTERVENTION EFFORT THEY ALSO DISAGREE ABOUT WHETHER JAPANESE CENTRAL BANK INTERVENTION CAN HAVE ANY LASTING IMPACT ON THE DOLLAR YEN EXCHANGE RATE LAST YEAR THE TREASURY INTERVENED IN APRIL AND IN AUGUST TO STOP A RISE IN THE YEN THE COORDINATED SUMMER INTERVENTION BY JAPAN AND THE U. S. CAME WHEN THE YEN HIT A POSTWAR HIGH TRADERS ARE BETTING THE U. S. WON'T BE AS QUICK TO INTERVENE THIS TIME THOUGH AT THIS POINT GIVEN THE ADMINISTRATION'S DISAPPOINTMENT WITH JAPAN I THINK THEY'LL BE MUCH SLOWER TO MOVE AGAINST A HIGH YEN SAYS STEPHEN ROACH SENIOR U. S. ECONOMIST AT MORGAN STANLEY AND COMPANY KENNETH H. BACON CONTRIBUTED TO THIS ARTICLE THE EUROPEAN UNION COMMISSION SAID YESTERDAY THAT IT WILL STUDY A PLAN BY FORD MOTOR COMPANY TO ACQUIRE CONTROL OF HERTZ CORPORATION BY INCREASING ITS SHAREHOLDING FORD ALREADY OWNS FORTY NINE PERCENT OF THE WORLD WIDE CAR RENTAL COMPANY A FORD SPOKESMAN IN THE U. S. SAID COMMERZBANK OF GERMANY WANTS TO SELL ITS FIVE PERCENT STAKE IN HERTZ TO FORD CLEARANCE BY THE E. U. AGENCY IS REQUIRED FORD SAID THE FEDERAL TRADE COMMISSION CLEARED THE PROPOSAL LAST YEAR IN A NOTICE IN THE E. U.'S OFFICIAL JOURNAL DATED FEBRUARY TWELFTH THE COMMISSION SAID FORD'S PLAN MAY FALL UNDER THE JURISDICTION OF THE E. U.'S MERGER RULES UNDER THOSE RULES THE AGENCY HAS FOUR WEEKS TO DECIDE WHETHER THE PLAN COULD HARM COMPETITION IN E. U. MARKETS IF IT FINDS QUOTE SERIOUS DOUBTS QUOTE ABOUT THE TRANSACTION IT MUST OPEN A DEEPER FOUR MONTH INVESTIGATION THE COMMISSION CAN ALTER OR BLOCK SUCH TRANSACTIONS IF THEY WOULD WEAKEN COMPETITION THE COMMISSION GAVE COMPETITORS UNTIL FEBRUARY TWENTY SECOND TO COMMENT PITNEY BOWES INCORPORATED A MAKER OF MAILING MACHINES AND OTHER OFFICE PRODUCTS BOOSTED ITS QUARTERLY DIVIDEND SIXTEEN PERCENT TO TWENTY SIX CENTS A SHARE FROM TWENTY TWO POINT FIVE CENTS PAYABLE MARCH TWELFTH TO SHARES OF RECORD FEBRUARY TWENTY FIFTH THE STAMFORD CONNECTICUT COMPANY SAID THE INCREASE REFLECTS QUOTE CONTINUED CONFIDENCE IN OUR STRATEGIC DIRECTION AND FINANCIAL SOUNDNESS QUOTE ORACLE SYSTEMS CORPORATION SAID IT PLANNED TO INTRODUCE THREE PRODUCT LINES TO SUPPORT THE DELIVERY OF MOVIES INFORMATION AND OTHER ELECTRONIC SERVICES OVER THE SO CALLED INFORMATION HIGHWAY ORACLE BASED IN REDWOOD CITY CALIFORNIA SAID IT WILL WORK WITH AT LEAST SEVENTEEN MEDIA COMUNICATIONS AND ELECTRONICS COMPANIES TO PUSH ITS SOFTWARE TECHNOLOGY AS A STANDARD FOR MANAGING DATA ON THE INFORMATION HIGHWAY ORACLE'S PLANS FOR THIS EMERGING BUSINESS ARE WELL KNOWN THE MOST PROMINENT OF ITS PARTNERSHIPS ALREADY HAVE BEEN ANNOUNCED BUT ANALYSTS SAID THE STOCK ROSE ONE DOLLAR TO THIRTY TWO DOLLARS AND SEVENTY FIVE CENTS IN NASDAQ STOCK MARKET TRADING IN RESPONSE TO FURTHER DETAILS ORACLE WHICH SELLS AND SERVICES DATABASE SOFTWARE IS EXPECTED TO FACE STIFF COMPETITION FROM MICROSOFT CORPORATION AND OTHERS BENT ON SUPPLYING MULTIMEDIA SOFTWARE BUT SO FAR ORACLE HAS BEEN THE MOST AGGRESSIVE IN STAKING A CLAIM OVER THIS INFANT MARKET LAST WEEK THE COMPANY SAID IT WOULD WORK WITH APPLE COMPUTER INCORPORATED TO PRODUCE T. V. SET TOP BOXES FOR USE BY CABLE CUSTOMERS IN JANUARY THE COMPANY SAID IT WILL SUPPLY BELL ATLANTIC CORPORATION WITH MULTIMEDIA SOFTWARE AND SERVICES A NEW BREED OF RETAIL PIONEER IS HEADING FOR A PROMISING FRONTIER DOWNTOWN HAVING DESERTED CENTER CITIES OVER THE PAST TWENTY YEARS RETAILERS ARE NOW BEING DRAWN BACK BY THE SAME FACTORS THAT LURED THEM TO THE SUBURBS REASONABLE REAL ESTATE PRICES AND PLENTY OF POTENTIAL CUSTOMERS MOREOVER URBAN DEVELOPERS SAY A DOWNTOWN STORE THESE DAYS CAN GIVE A BIG RETAILER A MARKET ALL TO ITSELF THERE IS ANOTHER REASON VIRTUALLY ALL THE PRIME LOCATIONS IN MAJOR SUBURBAN MALLS ARE OCCUPIED SAYS RICHARD ETCHIKSON CHAIRMAN OF RETAIL CONSULTANTS INCORPORATED MILLBURN N. J. AND RENTS IN UNOCCUPIED MALL SPACE ARE VERY HIGH QUOTE MANY OF THE RETAILERS WHO WEREN'T INTERESTED IN THE CITY FIVE YEARS AGO ARE NOW ATTRACTED TO IT QUOTE MR. ETCHIKSON SAYS IN THE PAST THREE YEARS FILENE'S BASEMENT CORPORATION HAS OPENED DOWNTOWN STORES IN WASHINGTON NEW YORK AND PHILADELPHIA KMART CORPORATION SAYS IT'S HUNTING FOR A LOCATION IN DETROIT THOUGH THE COMPANY'S TROY MICHIGAN HEADQUARTERS IS ONLY EIGHT MILES NORTH OF DETROIT KMART HASN'T BUILT A NEW STORE IN THE MOTOR CITY IN MORE THAN TWO DECADES MONTGOMERY WARD AND COMPANY RECENTLY OPENED ONE OF ITS MODERATE PRICED DEPARTMENT STORES IN DOWNTOWN MINNEAPOLIS TOYS R. US INCORPORATED THE TOY SUPERSTORE SAYS FIVE OF THE FORTY U. S. STORES IT WILL OPEN THIS YEAR WILL BE IN URBAN AREAS CURRENTLY ONLY EIGHT OF ITS FIVE HUNDRED EIGHTY ONE U. S. STORES ARE IN CENTRAL CITIES AND TARGET STORES THE BIG DISCOUNT DIVISION OF DAYTON HUDSON CORPORATION IS PREPARING FOR THE MARCH THIRTEENTH OPENING OF A STORE ITS BIGGEST EVER IN DOWNTOWN PASADENA CALIFORNIA TARGET ALSO OPENED A STORE IN CENTRAL DALLAS LAST OCTOBER TODAY'S URBAN RETAIL PIONEERS AREN'T THE SAME ONES THAT LEFT FOR THE HINTERLANDS THE EXODUS FROM DOWNTOWN WAS LED BY DEPARTMENT STORES AND SMALLER SHOPS THE NEWCOMERS PREDOMINANTLY ARE LOW PRICED RETAILERS MANY OF WHOM NEVER HAD A FOOTHOLD IN CITIES BUT WHO NOW ARE FINDING A STRONG CUSTOMER BASE THERE OUR MERCHANDISE ASSORTMENT IS IN CAREER CLOTHING SAYS GARY CRITTENDEN CHIEF FINANCIAL OFFICER OF FILENE'S BASEMENT OUR CUSTOMERS WORK AND LIVE DOWNTOWN SO IT IS A NATURAL PLACE FOR US TO BE DOWNTOWN ALSO IS A PLACE TO GROW WITH ITS STORES ALREADY BLANKETING THE SUBURBS TOYS R. US MUST FIND NEW PLACES TO BUILD IF IT WANTS TO CONTINUE GAINING MARKET SHARE SAYS ROBERT NAKASONE VICE CHAIRMAN TO BE SURE OPENING CITY STORES PRESENTS CHALLENGES SUCH AS CRIME TIGHTER CONFINES AND DIFFERENT SHOPPING HABITS MONTGOMERY WARD SAYS CUSTOMERS AT ITS NEW DOWNTOWN MINNEAPOLIS STORE ARE MORE LIKELY TO BUY CLOTHING JEWELRY AND OFFICE PRODUCTS AND LESS PRONE TO BUY BIG APPLIANCES AS A RESULT A SPOKESWOMAN SAYS QUOTE WE'RE WORKING TO MAKE THE STORE'S OFFERINGS APPROPRIATE FOR THAT ENVIRONMENT QUOTE THE NEW DOWNTOWN RETAILERS ALSO ARE SCHEDULING MORE SALES CLERKS TO WORK DURING LUNCH TIME AND AT QUITTING TIME AND ARE STAFFING LIGHTLY IN THE EVENING AND ON WEEKENDS EVENINGS MAY BE SLOW SAYS TOYS R. US'S MR. NAKASONE BUT LUNCH TIME DOWNTOWN EVERY DAY IS LIKE THE CHRISTMAS SHOPPING SEASON DOWNTOWN STORES' DESIGN AND LOGISTICS CAN REQUIRE EXTRA WORK OFTEN REQUIRING RETAILERS TO ALTER SINGLE LEVEL SUBURBANMALL PROTOTYPES TO FIT THE SPACE AVAILABLE TARGET'S THREE STORY PASADENA STORE WILL BE ITS FIRST MULTILEVEL OUTLET TARGET HAS INSTALLED FOUR OVERSIZED ELEVATORS AND ESCALATORS WITH STEPS DEEP ENOUGH TO ACCOMMODATE SHOPPING CARTS TOYS R. US'S STORE IN DOWNTOWN CHICAGO WHICH ALSO OCCUPIES THREE FLOORS CAN ACCEPT DELIVERIES ONLY BETWEEN SIX THIRTY P. M. AND SIX A. M. BECAUSE OF TRAFFIC RESTRICTIONS THE STORE THUS KEEPS ITS STOCKROOM OPEN ALL NIGHT TO RECEIVE INVENTORY THE FEAR OF URBAN CRIME IS ANOTHER CHALLENGE THE DEVELOPERS OF TARGET'S DOWNTOWN DALLAS STORE SOUGHT TO THWART CRIME BY LIGHTING THE PARKING LOT TO EIGHT TIMES THE INDUSTRY'S STANDARD LEVEL THE DEVELOPERS ALSO WERE CAREFUL NOT TO PLACE PUBLIC TELEPHONES IN OUT OF THE WAY PLACES THESE TIPS CAME FROM CONSULTATIONS WITH THE DALLAS POLICE DEPARTMENT AT TOYS R. US'S DOWNTOWN CHICAGO STORE CUSTOMERS HEADING FOR THE MAIN SELLING FLOOR MUST FIRST GO UP OR DOWN AN ESCALATOR MOVE THROUGH A SUBSIDIARY SELLING FLOOR AND TAKE ANOTHER ESCALATOR TO THE MAIN FLOOR A SECURITY DESK WATCHES OVER EXITS FROM THE MAIN FLOOR ASIDE FROM THE ADDED SECURITY TOYS R. US SAYS THIS TRAFFIC FLOW FORCES CUSTOMERS TO ENCOUNTER MERCHANDISE IN THE SAME ORDER THAT THEY WOULD IF THEY WERE BREEZING THROUGH A SUBURBAN STORE NEITHER TOYS R. US NOR TARGET HAS EXPERIENCED ANY SIGNIFICANT CRIME IN THEIR CITY STORES OFFICIALS SAY PAYING FOR THESE ADDITIONAL DESIGN LOGISTICS AND SECURITY MEASURES IS MORE AFFORDABLE FOR URBAN RETAILERS THESE DAYS BECAUSE OCCUPANCY COSTS IN MANY DOWNTOWNS HAVE DECLINED IN THE PAST THREE YEARS FOR EXAMPLE THE COMPANY DEVELOPING THE PROPERTY WHERE TARGET HAS ITS DOWNTOWN DALLAS STORE PAID FORTY FIVE MILLION DOLLARS FOR THE PROPERTY LESS THAN A FIFTH OF WHAT ITS PRIOR OWNER PAID TO ASSEMBLE THE SITE IN THE EARLY NINETEEN EIGHTIES THE CHEAPER REAL ESTATE ALLOWS THE DEVELOPER CITYPLACE COMPANY TO CHARGE TARGET A RENTAL RATE NEARLY AS LOW AS WHAT TARGET PAYS IN THE DALLAS SUBURBS BETWEEN THREE DOLLARS AND TEN DOLLARS A SQUARE FOOT PER YEAR SAYS NEAL SLEEPER CITYPLACE PRESIDENT MR. SLEEPER SAYS CITYPLACE HAS ANOTHER ATTRACTION FOR TARGET THE STORE WON'T HAVE TO WORRY ABOUT ANY OF ITS BIG CHAIN COMPETITORS SHOWING UP SOON BECAUSE SURROUNDING SPACE IS OCCUPIED HE SAYS QUOTE THERE'S NO PLACE FOR ANYBODY ELSE TO COME QUOTE GARNERING AN EXCLUSIVE FRANCHISE LOCKED KMART AND WAL MART STORES INCORPORATED IN A YEAR LONG COMPETITION FOR A PARCEL IN KANSAS CITY MISSOURI THE VICTOR KMART WILL BE THE ONLY BIG DISCOUNTER WITHIN FIVE MILES OF THE PROPERTY SAYS STEPHEN G. BLOCK AN EXECUTIVE OF THE COMPANY THAT IS DEVELOPING THE SITE ASSEMBLING THIS KIND OF SITE AGAIN IN THIS AREA IS GOING TO BE EXTREMELY DIFFICULT FOR A RETAILER SAYS MR. BLOCK KMART KIND OF HAS A MONOPOLY HERE BY DEFAULT AS RETAILERS REDISCOVER THE CITY THEY ARE HELPING TO REVITALIZE AREAS THAT OFTEN HAVEN'T RESPONDED TO GOVERNMENT SPONSORED INITIATIVES BUT IT ISN'T ALTRUISM THAT'S AT WORK SAYS A TARGET SPOKESWOMAN BOTTOM LINE IS WE FELT WE COULD BE PROFITABLE VIACOM APPEARED TO GAIN VICTORY IN THE FIVE MONTH TAKEOVER BATTLE FOR PARAMOUNT BY MID EVENING VIACOM'S OFFER OF ROUGHLY TEN BILLION DOLLARS HAD ATTRACTED MORE THAN SIXTY PERCENT OF PARAMOUNT'S SHARES TWO PEOPLE FAMILIAR WITH THE COUNT SAID WELL IN EXCESS OF THE FIFTY POINT ONE PERCENT NEEDED TO BEAT Q. V. C. BARRING LAST MINUTE CHANGES IN THE COUNT UNEXPECTED WITHDRAWALS BY SHAREHOLDERS OR A Q. V. C. COURT CHALLENGE THE BIDDING RULES REQUIRE Q. V. C. TO BOW OUT THE DOLLAR PLUNGED NEARLY FOUR PERCENT AGAINST THE YEN AMID SPECULATION THAT THE CLINTON ADMINISTRATION WILL TRY USING A STRONGER YEN TO PROD A JAPANESE MARKET OPENING BUT LAST NIGHT THE U. S. ISSUED A STATEMENT THAT ITS POLICY HASN'T CHANGED AND THAT IT DOESN'T ENDORSE MANIPULATING EXCHANGE RATES THE WHITE HOUSE IS PREPARING A TWO PRONGED TRADE ATTACK DECIDING TO RENEW THE TOUGH SUPER THREE HUNDRED ONE TRADE PROVISION AND PLANNING TRADE SANCTION PROCEEDINGS OVER CELLULAR TELEPHONES MOST OF CORPORATE AMERICA HOWEVER DOESN'T WANT A TRADE WAR WITH JAPAN THAT THREATENS TO FLARE OUT OF CONTROL TOKYO STOCKS TUMBLED TWO POINT SEVEN PERCENT MONDAY AFTER THE FAILURE OF U. S. JAPAN TRADE TALKS SENT THE YEN SOARING AND FELL A FURTHER THREE POINT ONE PERCENT TUESDAY MORNING THE JUSTICE DEPARTMENT OPPOSED A. T. AND T.'S REQUEST FOR A WAIVER THAT WOULD CLEAR AN OBSTACLE TO ITS PROPOSED PURCHASE OF MCCAW BUT THE MOVE WON'T NECESSARILY BLOCK THE PLAN G. E. AND HONEYWELL WERE ACCUSED BY TWO UNIONS OF FIRING MEXICAN WORKERS FOR TRYING TO ORGANIZE INTO LABOR UNIONS IN THE FIRST COMPLAINTS FILED UNDER NAFTA'S LABOR SIDE AGREEMENT BANC ONE'S AGREEMENT TO BUY FIRSTIER FINANCIAL FELL APART LARGELY AS A RESULT OF A SLIDE IN BANC ONE'S STOCK BUSINESS INVENTORIES HELD STEADY IN DECEMBER AND SALES ROSE ZERO POINT EIGHT PERCENT FOR ALL OF NINETEEN NINETY THREE STOCKPILES WERE UP THREE PERCENT WHILE SALES INCREASED A MORE ROBUST FIVE POINT FOUR PERCENT EMPLOYER COSTS FOR PRESCRIPTION DRUG BENEFITS JUMPED FIFTEEN PERCENT LAST YEAR ABOUT TWICE THE RATE OF OVERALL HEALTH PLAN EXPENSES A SURVEY FOUND DUFF AND PHELPS PLANS TO SPIN OFF ITS CREDIT RATING OPERATION A MOVE THAT WOULD FREE THE PARENT COMPANY FROM CONFLICT OF INTEREST CONCERNS THAT BLOCK IT FROM MANAGING MUTUAL FUNDS AOKI TENTATIVELY AGREED TO SELL MUCH OF ITS WESTIN HOTELS AND RESORTS TO AN INVESTOR GROUP FOR SEVEN HUNDRED EIGHT MILLION DOLLARS LLOYD'S OF LONDON INVESTORS REJECTED A ONE POINT THREE BILLION DOLLAR SETTLEMENT OFFER INCREASING CHANCES OF A COSTLY LEGAL BATTLE OVER LOSSES THE INVESTORS INCURRED IN THE INSURANCE MARKET A. T. AND T. HIRED PIER CARLO FALOTTI A COMPUTER EXECUTIVE TO RUN ITS EUROPE MIDDLE EAST AND AFRICA OPERATIONS RETAILERS ARE RETURNING TO DOWNTOWN URBAN AREAS REVERSING A TWENTY YEAR SHIFT TO SUBURBAN MALLS KMART MONTGOMERY WARD AND TOYS QUOTE R. QUOTE US ARE AMONG THE FIRMS OPENING STORES IN CITIES SEEKING REASONABLE REAL ESTATE RATES AND LOTS OF POTENTIAL CUSTOMERS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED THIRTY FOUR POINT FIVE SIX OFF EIGHT POINT THREE ONE COMMODITIES OIL FOURTEEN DOLLARS AND THIRTEEN CENTS A BARREL OFF FIFTY NINE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY FIVE POINT OH THREE UP ZERO POINT SIX SEVEN SPOT INDEX ONE HUNDRED THIRTY POINT FIVE SIX OFF ZERO POINT ZERO FOUR DOLLAR ONE HUNDRED TWO POINT SIX FIVE YEN OFF FOUR POINT TWO OH ONE POINT SEVEN TWO SEVEN THREE MARKS OFF ZERO POINT ZERO TWO SEVEN ZERO GENERAL PUBLIC UTILITIES CORPORATION PARSIPPANY N. J. SAID IT PLANS A REORGANIZATION TO SEPARATE POWER GENERATION FROM DISTRIBUTION ACTIVITIES AND CUT COSTS THE UTILITY HOLDING COMPANY SAID IT WILL CREATE A NEW UNIT G. P. U. GENERATION CORPORATION IN JOHNSTOWN PENNSYLVANIA TO OPERATE GENERATING STATIONS FORMERLY OWNED OR OPERATED BY ITS METROPOLITAN EDISON PENNSYLVANIA ELECTRIC AND JERSEY CENTRAL POWER AND LIGHT UNITS THE COMPANY ALSO PLANS TO COMBINE THE POWER TRANSMISSION DISTRIBUTION AND CUSTOMER SERVICE FUNCTIONS OF MET ED AND PENNSYLVANIA ELECTRIC ALTHOUGH THE TWO COMPANIES WON'T BE MERGED THE REALIGNMENT WILL RESULT IN QUOTE SIGNIFICANT REDUCTION QUOTE IN PAYROLL SAID CHAIRMAN JAMES R. LEVA G. P. U.'S ACTIONS ARE SIMILAR TO OTHER UTILITIES' RESPONSES TO COMPETITION AND CHANGING REGULATION COMPANIES HAVE BEEN TRYING TO SEPARATE REGULATED FROM NONREGULATED BUSINESSES AS WELL AS POWER GENERATION OPERATIONS FROM POWER DISTRIBUTION SUPPOSE YOU'RE STARTING OUT TO INVEST IN THE MARKET FOR THE FIRST TIME YOU WANT TO BE SAFE BUT YOU'D ALSO LIKE TO MAKE A LITTLE MONEY YOU'VE ALWAYS HEARD THAT BONDS WERE THE SAFE THING TO BUY BUT YOU'VE ALSO HEARD THAT STOCKS ALWAYS REPEAT ALWAYS PAY A BETTER RETURN THAN BONDS SO HOW ABOUT STOCKS THE DOW JONES INDUSTRIAL AVERAGE YOU'VE HEARD IS MADE UP OF HIGH GRADE STOCKS THE SORT OF SECURITIES THAT EXPERIENCED INVESTORS CALL QUOTE BLUE CHIPS QUOTE SO WHAT CAN YOU GET ON BLUE CHIPS CONSULTING THE WALL STREET JOURNAL YOU FIND THAT THE AVERAGE DIVIDEND YIELD ON INDUSTRIAL AVERAGE STOCKS IS LESS THAN THREE PERCENT THAT'S PRETTY DISAPPOINTING THE JOURNAL HAS CLUED YOU IN TO THE FACT THAT BONDS YIELD MORE THAN TWICE THAT EVEN TREASURY BONDS ABOUT THE SAFEST INVESTMENT AROUND YIELD TWICE WHAT D. J. I. A. STOCKS DO WELL NOT TO WORRY THE KEY WORD IS RETURN NOT YIELD IF YOU BUY A ONE THOUSAND DOLLAR TREASURY BOND IT WILL STILL BE WORTH JUST ONE THOUSAND DOLLARS WHEN YOU CASH IT IN IF YOU INVEST ONE THOUSAND DOLLARS IN BLUE CHIP STOCKS THE STOCKS MAY BE WORTH A GOOD DEAL MORE WHEN YOU SELL THEM IF YOU BOUGHT AN AVERAGE D. J. I. A. STOCK A YEAR AGO IT WOULD NOW BE WORTH NEARLY TWENTY PERCENT MORE THAN YOU PAID FOR IT YOUR DIVIDEND YIELD MAY BE PIDDLING BUT THE TOTAL RETURN ON YOUR INVESTMENT HAS BEEN A HEALTHY TWENTY PERCENT PLUS IT'S OBVIOUS THAT MANY PEOPLE HAVE BEEN BUYING STOCKS IN THE PAST YEAR PUSHING THE INDUSTRIAL AVERAGE UP TO ONE NEW HIGH AFTER ANOTHER THE RISE WAS INTERRUPTED BY REACTION TO THE FEDERAL RESERVE'S INCREASE IN THE FEDERAL FUNDS RATE BUT MOST ANALYSTS EXPECT IT TO RESUME SOME OF THE STOCK BUYERS SURELY HAVE BEEN HOPING THAT THE BLUE CHIP COMPANIES SOON WILL RAISE THEIR DIVIDENDS MAKING THE DIVIDEND YIELD MORE ATTRACTIVE SOME INVESTORS AREN'T EXACTLY COMFORTABLE WITH THE IDEA THAT THEY WILL HAVE TO SELL THEIR STOCK AT JUST THE RIGHT TIME TO GET THE BEST POSSIBLE RETURN THIS COULD SPUR A BINGE OF PROFIT TAKING WHICH WOULD SEND PRICES TUMBLING THIS HAS BEEN ONE OF THE LONGEST BULL MARKETS SINCE WORLD WAR TWO AND SOME ANALYSTS THINK IT MAY BE ABOUT TIME FOR A CORRECTION DECLINING STOCK PRICES AT SOME POINT COULD SPUR A LOVE FOR BONDS IN A NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER TWO CORNELL UNIVERSITY ECONOMISTS SHLOMO BENARTZI AND RICHARD THALER NOTE THAT SINCE NINETEEN TWENTY SIX THE AVERAGE INFLATION ADJUSTED RATE OF RETURN ON STOCKS HAS BEEN SEVEN PERCENT COMPARED WITH LESS THAN ONE PERCENT FOR TREASURY BILLS ONE OF THE LEAST RISKY OF ASSETS BUT THE STOCK MARKET HAS HAD LOTS OF UPS AND DOWNS IN THE PAST SIXTY EIGHT YEARS PART OF THE REASON FOR THE HUGE DISPARITY BETWEEN STOCKS AND DEBT ISSUES IS THAT COMPANIES MUST PERSUADE INVESTORS TO TAKE RISKS BY OFFERING THE LURE OF A HIGHER RETURN IN THE PAST YEAR THE RAPID RISE OF THE MARKET HAS EASED THIS PROBLEM FOR CORPORATIONS THE CORNELL ECONOMISTS COMMENT EMPIRICAL ESTIMATES OF LOSS AVERSION ARE TYPICALLY IN THE NEIGHBORHOOD OF TWO MEANING THE DISUTILITY OF GIVING SOMETHING UP IS TWICE AS GREAT AS THE UTILITY OF ACQUIRING IT BUT LOSS AVERSION ISN'T THE ONLY FACTOR AT WORK ACCORDING TO THE AUTHORS A LOT DEPENDS ON HOW OFTEN THE INVESTOR EXAMINES HIS PORTFOLIO HOW NERVOUS IS HE MENTALLY OR WITH PAPER AND PENCIL DOES HE EXAMINE HIS HOLDINGS EVERY WEEK EVERY MONTH EVERY YEAR EVERY DECADE THE FREQUENCY OF THESE EXAMINATIONS HELPS TO DETERMINE HOW MUCH RISK THE INVESTOR WILL ACCEPT IF HE IS STRICTLY A BUY AND HOLD INVESTOR HE MAY LOOK THE PURCHASE OVER PRETTY CAREFULLY BEFORE HE MAKES IT BUT THEN HE MAY PUT THE CERTIFICATE AWAY AND NOT EVEN THINK OF IT FOR YEARS HOWEVER IF HE IS THE SORT WHO FLIPS TO THE MARKET PAGES EVERY MORNING AND CAREFULLY CHECKS HOW HIS STOCKS ARE DOING ANY UNUSUAL VOLATILITY IS LIKELY TO TRIGGER A CALL TO HIS BROKER THE AUTHORS CONDUCT A VARIETY OF EXERCISES TO DETERMINE HOW OFTEN AN INVESTOR MUST EXAMINE HIS PORTFOLIO IF HE IS TO BE INDIFFERENT ABOUT WHETHER TO BUY STOCKS OR BONDS THEY CONCLUDE THAT THE INVESTOR WHO EXAMINES HIS HOLDINGS ABOUT ONCE A YEAR WOULDN'T CARE WHETHER HE HAD STOCKS OR BONDS IDEALLY THEY SUGGEST HE WILL HOLD ABOUT FIFTY PERCENT OF EACH THE AUTHORS CALL THE COMBINATION OF LOSS AVERSION AND A TENDENCY TO EXAMINE PORTFOLIOS FREQUENTLY MYOPIC LOSS AVERSION IF DIVIDEND YIELDS STAY LOW AND INVESTORS READ THE FINANCIAL PAGES A LITTLE MORE FREQUENTLY THERE'S LIKELY TO BE A LOT OF THAT GOING AROUND OHM CORPORATION FINDLAY OHIO REPORTED NET INCOME FOR THE FOURTH QUARTER AS INCREASING INCOME FROM GOVERNMENT PROJECTS ESPECIALLY SUPERFUND SITES OFFSET DECLINING REVENUE FROM THE PRIVATE SECTOR FOR THE QUARTER THE ENVIRONMENTAL REMEDIATION CONCERN EARNED ONE POINT ONE MILLION DOLLARS OR EIGHT CENTS A SHARE COMPARED WITH A YEAR EARLIER LOSS OF FIVE POINT FIVE MILLION DOLLARS OR FORTY SIX CENTS A SHARE REVENUE INCREASED THIRTY EIGHT PERCENT TO SEVENTY EIGHT POINT FOUR MILLION DOLLARS FROM FIFTY SIX POINT EIGHT MILLION DOLLARS OHM SAID ORDER BACKLOGS INCLUDING SOME CONTRACTS AWARDED IN EARLY NINETEEN NINETY FOUR ARE NOW MORE THAN ONE POINT ONE BILLION DOLLARS THE COMPANY HAD AN ORDER BACKLOG AT YEAR END OF ABOUT EIGHT HUNDRED FIFTY THREE MILLION DOLLARS UP FROM THREE HUNDRED SEVENTY ONE MILLION DOLLARS AT THE END OF NINETEEN NINETY TWO FOR THE YEAR OHM REPORTED NET OF FOUR POINT FOUR MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE COMPARED WITH A YEAR EARLIER LOSS OF FOUR POINT THREE MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE REVENUE INCREASED NINE POINT FIVE PERCENT TO TWO HUNDRED FORTY TWO POINT FOUR MILLION DOLLARS FROM TWO HUNDRED TWENTY ONE POINT FOUR MILLION DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY OHM CLOSED AT SIXTEEN POINT SIX TWO FIVE DOLLARS UP THIRTY SEVEN POINT FIVE CENTS A U. N. COMMANDER STEPPED UP PRESSURE ON BOSNIAN SERB FORCES THE U. N.'S MILITARY CHIEF FOR BOSNIA TOLD THE SERBS THEY MUST GIVE HIS FORCES IN SARAJEVO CONTROL OF THEIR HEAVY GUNS BY SUNDAY OR FACE NATO AIR STRIKES HIS STATEMENT EFFECTIVELY CLOSED THE GAP BETWEEN PLANS DEVELOPED BY THE U. N. AND NATO FOR ENDING FIGHTING IN BOSNIA THERE HAD BEEN SPECULATION THAT THE SERBS COULD EXPLOIT DIFFERENCES BETWEEN THE TWO PLANS TO DELAY WITHDRAWING THEIR WEAPONS THE SERB FORCES TURNED IN TWO MORE ARTILLERY PIECES BRINGING TO TWENTY EIGHT THE TOTAL THEY HAVE GIVEN UP SO FAR MORE THAN FIVE HUNDRED HEAVY WEAPONS ARE SAID TO RING THE BOSNIAN CAPITAL THE U. S. IS BACKING A PLAN THAT AIMS TO RESTORE DEMOCRACY IN HAITI BUT DOESN'T INCLUDE A FIRM DATE FOR THE RETURN OF OUSTED PRESIDENT ARISTIDE IN A WIDENING BREACH WITH ARISTIDE THE U. S. PLAN CALLS FOR HIS EVENTUAL RESTORATION AFTER HE NAMES A PRIME MINISTER AND A NEW GOVERNMENT TAKES CERTAIN ACTIONS THE COUNCIL OF ECONOMIC ADVISERS SAID A WIDENING GAP BETWEEN RICH AND POOR IN THE U. S. IS QUOTE A THREAT TO THE SOCIAL FABRIC QUOTE AND BLAMED TECHNOLOGY THE DECLINE OF UNIONS A LAGGING MINIMUM WAGE AND IMMIGRATION THE REPORT DESCRIBES AN ADMINISTRATION PHILOSOPHY THAT GOVERNMENT MUST PROMOTE ECONOMIC EXPANSION CLINTON PLEDGED THREE HUNDRED NINETY SIX MILLION DOLLARS IN NEW U. S. ECONOMIC AID TO KAZAKHSTAN TO HELP THE EX SOVIET REPUBLIC MOVE TO A MARKET ECONOMY AND DISMANTLE NUCLEAR ARMS CLINTON SAID HE PROMISED THE AID AFTER KAZAKHSTAN PRESIDENT NAZARBAYEV PRESENTED HIM WITH PAPERS DOCUMENTING THAT NATION'S DECISION IN DECEMBER TO BECOME A NONNUCLEAR STATE THE RUSSIAN NAVY ANNOUNCED IT IS MOTHBALLING THREE OF ITS FIVE AIRCRAFT CARRIERS BECAUSE IT NO LONGER CAN AFFORD TO KEEP THE VESSELS AFLOAT EACH OF THE THREE CARRIERS IS IN NEED OF AN OVERHAUL BUT RUSSIA LACKS A BIG ENOUGH SHIPYARD OR THE RESOURCES TO REPAIR THEM THEIR SIX HUNDRED TWENTY FOOT LONG FLIGHT DECKS CAN HANDLE ONLY VERTICAL TAKEOFF AIRCRAFT A TRADE GROUP FOR H. M. O.S IS JOINING THE CLINTON ADMINISTRATION'S EFFORT TO BOOST VACCINATION RATES AMONG U. S. CHILDREN TO NINETY PERCENT BY NINETEEN NINETY SIX THE GROUP HEALTH ASSOCIATION OF AMERICA SAID THAT MORE THAN TWO HUNDRED FIFTY H. M. O.S WILL BE PARTICIPATING IN THE NATIONWIDE PROJECT THE P. L. O. INSISTED THAT A FINAL DETAILED ACCORD WITH ISRAEL ON PALESTINIAN SELF RULE MUST INCLUDE FULL AMNESTY FOR PALESTINIAN PRISONERS IN ISRAELI HANDS AFTER A DAY OF P. L. O. ISRAELI TALKS IN EGYPT THE CHIEF P. L. O. NEGOTIATOR EMPHASIZED THE AMNESTY ISSUE BUT PREDICTED THAT DETAILS OF AN AGREEMENT COULD BE WRAPPED UP IN LESS THAN A MONTH ARMED MEXICAN REBELS AGREED TO RELEASE A FORMER CHIAPAS STATE GOVERNOR THEY HAVE BEEN HOLDING SINCE JANUARY SECOND A GOVERNMENT PEACE ENVOY SAID THE HOSTAGE GENERAL CASTELLANOS IS TO BE FREED TOMORROW AS A GESTURE OF GOODWILL THE GOVERNMENT ENVOY SAID THE MOVE APPARENTLY WOULD BRING THE TWO SIDES CLOSER TO LONG AWAITED PEACE TALKS CLINTON'S HEALTH PLAN SHOULD BE CHANGED TO ENSURE THAT GAY PEOPLE AREN'T DISCRIMINATED AGAINST EITHER AS DOCTORS OR PATIENTS THE NATIONAL GAY AND LESBIAN TASK FORCE SAID THE GROUP PRAISED THE PRESIDENT'S COMMITMENT TO UNIVERSAL COVERAGE BUT SAID HIS BILL SHOULD AMONG OTHER THINGS ADD SPECIFIC LANGUAGE BARRING DISCRIMINATION ZULU DEMONSTRATORS OPENED FIRE OUTSIDE THE CITY HALL IN A SOUTH AFRICAN PORT DURBAN AS THEIR KING MET WITH PRESIDENT DE KLERK AND SAID HIS SUBJECTS WERE PREPARED TO DEFY THE GOVERNMENT AND PROCLAIM THEIR OWN STATE KING GOODWILL ZWELITHINI INTERRUPTED HIS TALKS TO APPEAL FOR ORDER AFTER THE VIOLENCE ERUPTED ONE MAN WAS KILLED PERU'S FUJIMORI DISMISSED THE POSSIBILITY OF NEGOTIATING WITH GUERRILLA GROUPS AND VOWED TO ERADICATE THEM BEFORE HIS TERM EXPIRES IN NINETEEN NINETY FIVE THE PRESIDENT SPEAKING DURING AN OFFICIAL VISIT IN COLOMBIA SAID HE WOULD NEVER OFFER NEGOTIATED FREEDOM TO THE LEADER OF THE SHINING PATH REBELS GUZMAN WHO WAS CAPTURED IN NINETEEN NINETY TWO ETHNIC FIGHTING IN GHANA HAS GROWN INTO A VIRTUAL GUERRILLA WAR OVER THE PAST TWO WEEKS THAT HAS KILLED HUNDREDS AND PERHAPS THOUSANDS OF PEOPLE AND DESTROYED DOZENS OF VILLAGES IN THE NORTH MILITARY OFFICIALS SAID THE ATTACKS HAVE BEEN CARRIED OUT WITH POISONED ARROWS MACHETES AND AUTOMATIC WEAPONS THE OFFICIALS ADDED AN AGREEMENT COULD BE COMPLETED THIS SUMMER TO SET UP AN AMERICAN ACADEMY IN BERLIN MODELED ON THE CENTURY OLD AMERICAN ACADEMY IN ROME THE PROPOSAL BACKED BY THE U. S. CONGRESS AND THE SMITHSONIAN INSTITUTION IS INTENDED TO DEMONSTRATE THE U. S. COMMITMENT TO THE GERMAN CITY FOLLOWING THE U. S. TROOP WITHDRAWAL LATER THIS YEAR THE ACADEMY WOULD SUPPORT RESEARCH AND CREATIONS BY VISITING SCHOLARS ARTISTS WRITERS AND OTHERS IN THE HUMANITIES IT ALSO WOULD HAVE A CENTER FOR RESEARCH ON EASTERN EUROPEAN HISTORY AND CULTURE STEVEN MANSBACH A PROFESSOR AT THE CENTER FOR ADVANCED STUDIES IN THE VISUAL ARTS AT WASHINGTON'S NATIONAL GALLERY OF ART IS TO BE THE ACADEMY'S DIRECTOR THE PROJECT TO BE FUNDED BY PRIVATE AND CORPORATE SOURCES HAS BEEN COORDINATED FROM THE SMITHSONIAN OF THE FORTY FOUR MILLION DOLLAR ENDOWMENT NEEDED TO FUND OPERATIONS ABOUT TWO MILLION DOLLARS HAS BEEN COMMITTED AND MORE PLEDGES ARE CONTINGENT ON SECURING A PERMANENT HOME IN BERLIN AS FRENCH FISHERMEN WIDENED A TWO WEEK OLD STRIKE TO MEDITERRANEAN PORTS THE GOVERNMENT VOWED TO BLOCK FISH IMPORTS UNTIL JUNE THE FISHERMEN WHOSE PROTESTS OFTEN TURNED VIOLENT REQUESTED MORE AID FOR SMALLER OPERATORS HURT BY HIGH COSTS AND INEXPENSIVE FISH IMPORTS THE GOVERNMENT HAS GRANTED SEVENTY FIVE MILLION DOLLARS IN AID SO FAR FISHERMEN YESTERDAY SOUGHT TO BLOCK SHIPPING TRAFFIC IN SOME PASSENGER OIL AND FISHING PORTS WHILE FISHERMEN FROM BRITTANY STOPPED TRUCKS ON HIGHWAYS TO PARIS TO CHECK FOR IMPORTED FISH AND DUMPED SOME CARGOES THE U. S. SELLS ONE HUNDRED THIRTY MILLION DOLLARS OF FISH A YEAR IN FRANCE AT LEAST TWENTY FIVE PERCENT OF CHINESE MARRIED WOMEN HAVE HAD ONE ABORTION AND EIGHT PERCENT TWO OR MORE A SURVEY BY THE GOVERNMENT CONTROLLED ALL CHINA WOMEN'S FEDERATION FOUND SUCH DATA HADN'T BEEN AVAILABLE IN CHINA WHICH CONTROLS POPULATION GROWTH BY LIMITING COUPLES TO ONE CHILD CITIES WHERE BIRTH RATES ARE THE LOWEST HAD THE HIGHEST ABORTION RATES LOWER RATES IN RURAL AREAS REFLECT RELATIVELY MORE STERILIZATIONS AFTER COUPLES HAVE ONE CHILD AS CHILDBIRTH OUTSIDE MARRIAGE IS SOCIALLY UNACCEPTABLE SINGLE WOMEN ACCOUNTED FOR TWENTY FIVE PERCENT OF THE ABORTIONS IN SHANGHAI AND BEIJING THE NUMBER OF POTENTIAL INVESTORS WHO VISITED VIETNAM LAST YEAR INCREASED TWENTY THREE PERCENT AS A RESULT OF LAST FALL'S RESUMPTION OF MULTILATERAL LENDING TO THE COUNTRY THE GOVERNMENT SAID SEVEN THOUSAND FOUR HUNDRED PROSPECTIVE INVESTORS MET WITH THE AGENCY THAT REGULATES FOREIGN INVESTMENT JAPANESE VISITORS LED THE PARADE FOLLOWED BY THOSE FROM TAIWAN THE U. S. SOUTH KOREA AND FRANCE THE INFLUX PRECEDING THE LIFTING OF THE U. S. ECONOMIC EMBARGO AGAINST VIETNAM STEMMED LARGELY FROM RESUMPTION OF LENDING BY AGENCIES SUCH AS THE WORLD BANK TO HELP REBUILD ROADS BRIDGES AND PORTS REGIONAL OFFICIALS IN VLADIVOSTOK APPROVED BUILDING TANKS IN RUSSIA'S FAR EAST FOR TEMPORARILY STORING NUCLEAR WASTE INSTEAD OF DUMPING IT INTO THE SEA OF JAPAN THE TANKS ARE TO BE INSTALLED ABOUT ONE HUNDRED TWENTY FIVE MILES EAST OF VLADIVOSTOK RUSSIA'S MAIN PACIFIC PORT JAPAN HAS AGREED TO FINANCE JAPANESE FIRMS' CONSTRUCTION OF A FAR EAST WASTE REPROCESSING PLANT IF RUSSIA DISCONTINUES OCEAN DUMPING THE I. G. METALL METALWORKERS UNION IN GERMANY RULING OUT LONGER WORKWEEKS AS A CONCESSION TO EMPLOYERS SAID IT WOULD RESUME WARNING STRIKES THIS WEEK A FULL STRIKE COULD BEGIN IN MARCH THE GESAMTMETALL EMPLOYERS GROUP SEEKING TO CUT ITS COSTS TEN PERCENT HAS PROPOSED A WAGE FREEZE AND BENEFIT CUTS THE UNION SAID IT WOULDN'T CAST ASIDE FIFTEEN YEARS OF LABOR POLICY TO BREAK THE DEADLOCK THAT CAUSED NEGOTIATIONS TO COLLAPSE THOUGH IT WOULD ACCEPT SMALLER WAGE BOOSTS IN RETURN FOR JOB GUARANTEES THE EUROPEAN UNION COMMISSION IS EXPECTED THIS WEEK TO FINE SEVENTEEN STEELMAKERS FOR ALLEGED PRICE FIXING THE MOVE COULD RAISE TENSIONS ABOUT PLANS TO OVERHAUL WESTERN EUROPE'S AILING STEEL INDUSTRY OFFICIALS SAID THE PENALTIES WOULD REFLECT CARTEL LIKE ACTIVITY DATING BACK TO THE LATE NINETEEN EIGHTIES FOR COLLUSION ON PRICES AND CORPORATE DATA ON MARKET DEMAND AND TRENDS UNDER E. U. COMPETITION LAW FINES CAN AMOUNT TO AS MUCH AS TEN PERCENT OF A COMPANY'S ANNUAL REVENUE INDUSTRY OFFICIALS WERE OUTRAGED BY THE PLANNED ACTION AS THEY PREPARED FOR PRODUCTION CUTBACK TALKS TODAY WITH THE E. U. ANTITRUST AND INDUSTRY COMMISSIONERS STEELMAKERS AND THE E. U. HAVE BEEN AT LOGGERHEADS SINCE LAST AUTUMN ON HOW TO REDUCE THE SECTOR'S SURPLUS CAPACITY IN DECEMBER THE E. U. APPROVED SEVEN POINT FIVE TWO BILLION DOLLARS IN GOVERNMENT SUBSIDIES FOR STEELMAKERS OWNED BY GERMANY ITALY SPAIN AND PORTUGAL OTHER PRODUCERS SAID THE E. U. WAS LETTING SUBSIDIES DISTORT COMPETITION WHILE PRESSING THEM FOR COSTLY PLANT CLOSURES CHINA'S PHARMACEUTICAL IMPORTS IN NINETEEN NINETY THREE ROSE TWENTY PERCENT TO SIX HUNDRED MILLION DOLLARS FROM NINETEEN NINETY TWO AND ALMOST DOUBLED FROM NINETEEN NINETY ONE THEY ACCOUNTED FOR AT LEAST SEVEN PERCENT OF CHINA'S PHARMACEUTICAL MARKET WHILE FOREIGN JOINT VENTURES' PRODUCTS REPRESENTED THIRTY FIVE PERCENT THE U. S. ADVISED AMERICANS TRAVELING TO OR LIVING IN EGYPT TO BE SECURITY CONSCIOUS AND KEEP A LOW PROFILE IT CITED THREATS AND VIOLENCE BY ISLAMIC EXTREMISTS AGAINST FOREIGN INVESTORS AND TOURISTS EVEN THOUGH U. S. CITIZENS HAVEN'T BEEN SINGLED OUT AS TARGETS EMPLOYER COSTS FOR PRESCRIPTION DRUG BENEFITS JUMPED FIFTEEN PERCENT LAST YEAR ABOUT TWICE THE RATE OF OVERALL HEALTH PLAN EXPENSES ACCORDING TO FOSTER HIGGINS AN EMPLOYEE BENEFITS CONSULTANT THE FINDINGS INDICATE THAT DESPITE GROWTH OF MANAGED CARE STRATEGIES TO CONTAIN HEALTH COSTS AND PLEDGES FROM DRUG MANUFACTURERS TO HOLD DOWN PRICE INCREASES MANY EMPLOYERS ARE STILL HAVING DIFFICULTY HOLDING DOWN THE COST OF PRESCRIPTION DRUGS FOR THEIR WORKERS QUOTE THE MOST SUCCESSFUL APPROACH WE SEE IN HOLDING DOWN COSTS IS GETTING MORE AND MORE EMPLOYEES INTO MANAGED CARE QUOTE SAID DAVID RAHILL PRINCIPAL AT FOSTER HIGGINS THE OVERALL RESULTS PROVIDE FURTHER EVIDENCE OF A GENERAL MODERATION IN HEALTH CARE INFLATION LAST MONTH FOR INSTANCE THE BUREAU OF LABOR STATISTICS REPORTED THAT MEDICAL CARE PRICES ROSE JUST FIVE POINT FOUR PERCENT LAST YEAR THE LOWEST ANNUAL INCREASE SINCE NINETEEN SEVENTY THREE BUT THE RESULTS FOR DRUG BENEFITS RUN COUNTER TO THAT TREND AND MAY REFLECT A VARIETY OF CONFLICTING FORCES IN THE MARKET FOR ONE THING SAID JAMES A. NORTON MANAGING CONSULTANT IN FOSTER HIGGINS'S STAMFORD CONNECTICUT OFFICE MORE COMPANIES ARE TRYING NEW TECHNIQUES TO MANAGE THEIR DRUG COSTS AND THE INITIAL IMPACT OF SUCH STRATEGIES OFTEN IS TO INCREASE COSTS THAT'S BECAUSE OF THE SHOEBOX EFFECT FOR EXAMPLE PRESCRIPTION CARDS AUTOMATICALLY RECORD CLAIMS THAT EMPLOYEES MIGHT OTHERWISE HAVE STUFFED IN A SHOEBOX AND NEVER FILED ANOTHER FACTOR MR. NORTON SAID MIGHT BE THE GROWING USE OF NEW DRUGS SUCH AS PROZAC AN ANTIDEPRESSANT MARKETED BY ELI LILLY AND COMPANY MANY EXPERTS SAID THEY BELIEVE THAT CONSUMERS ARE SEEKING AND PHYSICIANS ARE PRESCRIBING SUCH MEDICINES FOR CONDITIONS THAT DON'T CALL FOR PILLS THE CONSUMPTION OF DRUGS BY THE POPULATION IS INCREASING STEADILY EACH YEAR AND NOT NECESSARILY BECAUSE THE RATE OF DISEASE IS INCREASING IT APPEARS UNLIKELY THAT DRUG PRICE INCREASES CONTRIBUTED SIGNIFICANTLY TO THE RISE IN CORPORATE COSTS SINCE PRESCRIPTION DRUG PRICES WENT UP JUST THREE POINT ONE PERCENT LAST YEAR ACCORDING TO THE PRODUCER PRICE INDEX COMPARED WITH THE FIFTEEN PERCENT RISE IN EMPLOYER DRUG COSTS REVENUES AT THE MAJOR DRUG COMPANIES GREW ABOUT FIVE PERCENT NOTED JACK LAMBERTON AN ANALYST AT NATWEST SECURITIES CORPORATION A MERCK AND COMPANY SPOKESMAN SAID GROWTH OF MEMBERSHIP IN MANAGED CARE PLANS COULD ACCOUNT FOR SOME INCREASE IN EMPLOYER DRUG COSTS BECAUSE THE PLANS TEND TO USE DRUGS MORE AGGRESSIVELY TO HOLD DOWN HOSPITAL AND OTHER HEALTH CARE EXPENSES BUT BECAUSE MANAGED CARE ORGANIZATIONS NEGOTIATE DISCOUNTS THEIR INCREASED UTILIZATION AND INCREASED COST MIGHT NOT INCREASE DRUG COMPANIES' REVENUES PROPORTIONATELY SAID A SPOKESMAN FOR MCKESSON CORPORATION WHICH OWNS P. C. S. HEALTH SYSTEMS INCORPORATED A BIG MANAGER OF PHARMACEUTICAL COSTS FOR HEALTH PLANS ACCORDING TO I. M. S. AMERICA LIMITED WHICH COLLECTS DATA ON PRESCRIPTIONS DISPENSED IN THE NATION'S PHARMACIES INDIVIDUAL PRESCRIPTIONS WERE UP FIVE PERCENT IN NINETEEN NINETY THREE BUT THOSE DISTRIBUTED BY MAIL ORDER PHARMACIES WHICH ARE HEAVILY USED BY MANAGED CARE ORGANIZATIONS WERE UP FIFTEEN PERCENT OTHER FINDINGS FROM THE SURVEY SHOWED THAT THE AVERAGE TOTAL HEALTH BENEFIT COST PER EMPLOYEE WAS THREE THOUSAND SEVEN HUNDRED EIGHTY ONE DOLLARS LAST YEAR UP FROM THREE THOUSAND FIVE HUNDRED TWO DOLLARS IN NINETEEN NINETY TWO COSTS AT HEALTH MAINTENANCE ORGANIZATIONS ROSE SIX POINT FIVE PERCENT WHILE THOSE IN TRADITIONAL FEE FOR SERVICE PLANS GREW SEVEN POINT ONE PERCENT AT MANAGED CARE NETWORKS KNOWN AS PREFERRED PROVIDER ORGANIZATIONS OR P. P. O.S COSTS WERE UP FIVE POINT FIVE PERCENT WHILE AT SO CALLED POINT OF SERVICE PLANS H. M. O.S THAT PROVIDE MEMBERS WITH THE OPTION OF GETTING CARE OUTSIDE OF THEIR NETWORK INCREASES WERE EIGHT POINT NINE PERCENT UNLIKE TRADITIONAL H. M. O.S BOTH P. P. O.S AND POINT OF SERVICE PLANS OFFER MEMBERS THE OPTION AT INCREASED OUT OF POCKET COSTS TO SEE DOCTORS OUTSIDE OF THE HEALTH PLAN NEARLY ALL OF THE ENROLLMENT GROWTH IN MANAGED CARE OCCURRED IN THOSE TYPES OF PLANS WHILE TRADITIONAL H. M. O. MEMBERSHIP WAS ALMOST FLAT THE SURVEY FOUND THE DESIRE TO HAVE SOME CHOICE IS A KEY SELLING FEATURE OF ANY NEW HEALTH PLAN MR. RAHILL SAID PRESERVING CHOICE OF DOCTORS IS EMERGING AS A KEY ISSUE IN THE NATIONAL DEBATE OVER LEGISLATIVE PROPOSALS TO REFORM THE HEALTH CARE SYSTEM THE SURVEY ALSO FOUND THAT FOR SMALL EMPLOYERS THOSE WITH TEN TO FOUR HUNDRED NINETY NINE EMPLOYEES TOTAL AVERAGE HEALTH BENEFITS COSTS WERE THREE THOUSAND TWO HUNDRED FORTY DOLLARS COMPARED WITH FOUR THOUSAND ONE HUNDRED SEVENTEEN DOLLARS FOR EMPLOYERS WITH AT LEAST FIVE HUNDRED WORKERS SMALLER COMPANIES GENERALLY OFFER A LESS GENEROUS BENEFITS PACKAGE REQUIRE THEIR EMPLOYEES TO PAY HIGHER OUT OF POCKET COSTS AND DON'T PROVIDE RETIREE BENEFITS FOSTER HIGGINS SAID ELYSE TANOUYE CONTRIBUTED TO THIS ARTICLE WESTERN COMPANY OF NORTH AMERICA HOUSTON SAID IT EXPECTS TO REPORT THAT FOURTH QUARTER OPERATING PROFIT FELL FORTY FOUR PERCENT LARGELY AS A RESULT OF THE COMPANY HAVING SOLD MUCH OF ITS OFFSHORE OIL AND GAS DRILLING RIGS DURING THE LAST YEAR WESTERN COMPANY WHICH SAID IT'S FOCUSING MORE ON ITS PRESSURE SERVICING BUSINESS FOR OIL AND GAS WELLS SAID IT EXPECTS OPERATING PROFIT OF FOUR POINT FIVE MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE IN THE YEAR EARLIER QUARTER BEFORE A CHARGE OF ONE POINT TWO MILLION DOLLARS FROM THE PREPAYMENT OF DEBT THE COMPANY REPORTED PROFIT OF EIGHT MILLION DOLLARS OR FORTY FIVE CENTS A SHARE ON REVENUE OF ONE HUNDRED POINT TWO MILLION DOLLARS NET INCOME WAS SIX POINT EIGHT MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE THE OIL FIELD SERVICE COMPANY'S ESTIMATE FOR THE MOST RECENT FOURTH QUARTER EARNINGS EXCLUDES SEVERAL EXPECTED NONRECURRING ITEMS A GAIN OF THIRTY NINE POINT SIX MILLION DOLLARS FROM THE SALE OF RIGS CERTAIN ASSET WRITE DOWNS TOTALING FOURTEEN MILLION DOLLARS AND A CHARGE OF TWENTY SIX POINT TWO MILLION DOLLARS RELATED TO THE REPURCHASE OF SENIOR NOTES LLOYD'S OF LONDON INVESTORS REJECTED A NINE HUNDRED MILLION POUND ONE POINT THREE BILLION DOLLARS SETTLEMENT OFFER INCREASING CHANCES OF A COSTLY LEGAL BATTLE OVER LOSSES SUFFERED BY THE INSURANCE MARKET'S INVESTORS THE INVESTORS SOME OF WHOM HAVE BEEN RUINED BECAUSE OF BIG LOSSES FROM ASBESTOS POLLUTION AND NATURAL DISASTER CLAIMS ARE GAMBLING THEY WILL GET MORE MONEY FROM LITIGATION OR FROM A SWEETENED OFFER FROM LLOYD'S DESPITE LLOYD'S CLAIMS TO THE CONTRARY THE INVESTORS BELIEVE IT WILL MAKE A BETTER OFFER RATHER THAN FACE THE FINANCIAL AND PUBLIC RELATIONS RISKS OF A DRAWN OUT SPECTACLE IN COURT THE COMPENSATION PACKAGE WAS ORIGINALLY OFFERED TO INVESTORS IN DECEMBER IT WAS MEANT TO COMPENSATE THEM FOR LOSSES SUFFERED IN THE NINETEEN EIGHTIES BY ONE HUNDRED THIRTY LLOYD'S SYNDICATES WHOSE MANAGERS ARE ACCUSED OF NEGLIGENCE IT INCLUDED PAYMENTS FROM LLOYD'S CENTRAL FUND AND FROM ERRORS AND OMISSIONS INSURANCE TAKEN OUT BY LLOYD'S AGENTS THE AGENTS WHO RECRUIT INVESTORS FOR LLOYD'S SYNDICATES WOULD BE THE TARGET OF INVESTORS' LAWSUITS THE PLAN WAS SUPPORTED BY INVESTORS REPRESENTING ONLY THIRTY EIGHT PERCENT OF THE VALUE OF THE PROPOSED SETTLEMENT WELL BELOW THE SEVENTY PERCENT APPROVAL RATE LLOYD'S HAD REQUIRED THE LLOYD'S PLAN DID WIN A NARROW MAJORITY OF INVESTORS OF THE TWENTY THREE THOUSAND FOUR HUNDRED EIGHTY EIGHT VOTING TWELVE THOUSAND ONE HUNDRED THREE APPROVED THE PACKAGE THE PLAN APPEARED DOOMED FROM THE START AS COMMITTEES REPRESENTING THE INVESTORS KNOWN AS QUOTE NAMES QUOTE URGED MEMBERS TO REJECT IT THE PLAN COVERED ONLY ONE THIRD OF THE TWO POINT SEVEN BILLION POUNDS OF LOSSES UNDER DISPUTE AND MADE NO PROVISION FOR FUTURE LOSSES UNDER THE SAME POLICIES THE PLAN ALSO WOULD HAVE MEANT THE SURRENDER OF INVESTORS' RIGHTS TO FILE LAWSUITS THE MORE THAN THIRTY ONE THOUSAND PRIVATE INVESTORS WHO HAVE UNLIMITED EXPOSURE TO LLOYD'S LOSSES MUST ALSO CONTEND WITH AN ANTICIPATED LOSS OF TWO POINT OH FIVE BILLION POUNDS FOR NINETEEN NINETY ONE DUE TO BE REPORTED IN MAY LLOYD'S RESULTS ARE POSTED THREE YEARS IN ARREARS THAT WOULD BRING LLOYD'S LOSSES OVER A FOUR YEAR PERIOD TO SEVEN POINT FIVE BILLION POUNDS LLOYD'S NOW HAS WITHDRAWN THE OFFER WE PUT OUR ALL INTO THIS OFFER AND IT WAS THE VERY BEST OFFER WE COULD HAVE MADE SAID ROGER PASCALL ADMINISTRATIVE DIRECTOR OF THE ASSOCIATION OF LLOYD'S MEMBERS LLOYD'S HAS OTHER PRIORITIES NOW ALTHOUGH LLOYD'S HAS SAID IT WON'T MAKE A RICHER OFFER INVESTOR GROUPS BELIEVE IT MAY BE BLUFFING A LEGAL BATTLE WHICH COULD LAST FIVE YEARS WOULD POSE BIG RISKS FOR INVESTORS THEY HAVE ALREADY SPENT SOME ONE HUNDRED THOUSAND IN LEGAL COSTS WITHOUT CASES COMING TO COURT YET AND THERE'S NO CERTAINTY THAT THE COURTS WILL RULE IN THEIR FAVOR WITH THE MANAGING AGENTS THEMSELVES IN SHAKY FINANCIAL CONDITION THE INVESTORS MAY FIND THEMSELVES FIGHTING OVER A SMALL POT OF CASH THE NAMES HAVE CONVINCED THEMSELVES IN ALMOST ALL CASES THAT THEY HAVE A GOOD CASE BUT I DON'T THINK THEY'RE PAYING ENOUGH REGARD TO THE DIFFICULTY OF MAKING THEIR CASES STICK AND GETTING SOMETHING OUT OF IT MR. PASCALL SAID DESPITE YEARS OF BAD PUBLICITY THE LLOYD'S MARKET HAS BEEN RECOVERING ITS COSTS HAVE FALLEN MANY OF ITS PREMIUM RATES HAVE INCREASED AND BECAUSE IT HAS ALLOWED CORPORATE INVESTMENT FOR THE FIRST TIME ITS UNDERWRITING CAPACITY HAS CLIMBED TO TEN POINT NINE BILLION POUNDS THIS YEAR FROM EIGHT POINT SEVEN BILLION POUNDS IN NINETEEN NINETY THREE AND WITH THE ONCE WEALTHY NAMES FAILING TO WIN MUCH PUBLIC SYMPATHY SAYS MR. PASCALL THEY COULD FIND THEMSELVES STEWING IN THEIR OWN JUICE A LLOYD'S OF LONDON SPOKESMAN AFTER INVESTORS REJECTED A ONE POINT THREE BILLION DOLLAR SETTLEMENT OFFER SAID WE PUT OUR ALL INTO THIS OFFER AND IT WAS THE VERY BEST OFFER WE COULD HAVE MADE LLOYD'S HAS OTHER PRIORITIES NOW QUOTE IN AN ARTICLE TUESDAY THE QUOTE WAS ERRONEOUSLY ATTRIBUTED TO ROGER PASCALL ADMINISTRATIVE DIRECTOR OF THE ASSOCIATION OF LLOYD'S MEMBERS THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEBRUARY ELEVENTH NINETEEN NINETY FOUR THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER FEDERAL REALTY INVESTMENT TRUST WILL REDEEM ON MARCH THIRTY FIRST NINETEEN NINETY FOUR ITS FIVE AND ONE QUARTER PERCENT CONVERTIBLE SUBORDINATED DEBENTURES DUE TWO THOUSAND TWO CITIBANK NEW YORK IS PAYING AGENT FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM ON MARCH FIFTEENTH NINETEEN NINETY FOUR FOUR HUNDRED FIFTY MILLION THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS EIGHT POINT SEVEN PERCENT MEDIUM TERM NOTES DUE MARCH FIFTEENTH TWO THOUSAND ONE GREAT AMERICAN COMMUNICATIONS COMPANY WILL REDEEM ON FEBRUARY EIGHTEENTH NINETEEN NINETY FOUR ITS FOURTEEN PERCENT SENIOR EXTENDABLE P. I. K. NOTES SERIES ONE AND TWO DUE JUNE THIRTIETH TWO THOUSAND ONE SHAWMUT BANK CONNECTICUT IS TRUSTEE THE METRIC SYSTEM IS FINE BY US IF IT'S FINE BY THE AMERICAN PEOPLE IT'S NOT OF COURSE SO THE GOVERNMENT IS PURSUING ITS HALLOWED TRADITION OF PASSING A LAW TO FORCE FEED ITS WILL THE F. T. C. IS ABOUT TO REQUIRE PRODUCT LABELS TO INCLUDE BOTH ENGLISH UNITS AND METRIC EQUIVALENTS INDUSTRY SAYS FEW PEOPLE HAVE COMPLAINED ABOUT THE EXTRA COSTS WE'RE GLAD THEY ASKED VIACOM INCORPORATED APPEARED TO GAIN VICTORY IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED RECEIVING THE MAJORITY OF PARAMOUNT SHARES REQUIRED TO WIN THE CONTEST ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE COUNT BY MID EVENING YESTERDAY VIACOM'S OFFER OF ROUGHLY TEN BILLION DOLLARS FOR PARAMOUNT HAD ATTRACTED MORE THAN SIXTY PERCENT OF PARAMOUNT'S SHARES ACCORDING TO TWO OF THE PEOPLE WELL IN EXCESS OF THE FIFTY POINT ONE PERCENT NEEDED TO WIN UNDER BIDDING RULES AGREED TO BY VIACOM AND ITS BIDDING RIVAL Q. V. C. NETWORK INCORPORATED IT APPEARED THAT Q. V. C.'S OFFER WAS SWAMPED IN THE TALLY RECEIVING LESS THAN TEN MILLION SHARES COMPARED WITH ROUGHLY SEVENTY FIVE MILLION FOR VIACOM BARRING LAST MINUTE CHANGES IN THE COUNT WITHDRAWALS BY PARAMOUNT SHAREHOLDERS OR A COURT CHALLENGE BY Q. V. C. THE BIDDING RULES FOR THE PARAMOUNT AUCTION REQUIRE Q. V. C. TO WITHDRAW ITS OFFER AND BOW OUT THE DEADLINE FOR PARAMOUNT SHAREHOLDERS TO TENDER THEIR STOCK WAS TWELVE OH ONE A. M. TODAY Q. V. C. HAD NO OFFICIAL COMMENT BUT LATE LAST EVENING A HIGH LEVEL MEMBER OF THE Q. V. C. CAMP SAID THAT JUDGING FROM THE PAUCITY OF PARAMOUNT SHARES TENDERED TO THE HOME SHOPPING CONCERN VIACOM PRESUMABLY HAD PREVAILED IN THE STRUGGLE A SPOKESMAN FOR VIACOM SAID THE COMPANY WOULD HAVE NO OFFICIAL COMMENT UNTIL THIS MORNING ONE PERSON IN THE VIACOM CAMP SAID QUOTE JUST LIKE ANY PRESIDENTIAL CANDIDATE WE'LL WAIT UNTIL ALL THE RETURNS ARE IN CALIFORNIA HASN'T COME IN YET THE VOTE FOR VIACOM WAS OVERWHELMING AMONG WALL STREET PROFESSIONALS DESPITE PERSONAL APPEALS FROM Q. V. C. CHAIRMAN BARRY DILLER THAT HIS OFFER PROVIDED SUPERIOR LONG TERM VALUE BASED ON HIS ABILITY TO CREATE GREATER VALUE FROM PARAMOUNT'S ASSETS THIS WAS AN ECONOMIC CONTEST NOT A POPULARITY CONTEST SAID ONE WALL STREET EXECUTIVE ONE OF PARAMOUNT'S BIGGEST SHAREHOLDERS MARIO GABELLI WHOSE GABELLI FUNDS INCORPORATED OWNS FOUR MILLION SHARES OF PARAMOUNT SAID HE TENDERED HIS STOCK TO VIACOM BEFORE LAST NIGHT'S MIDNIGHT DEADLINE FOR PARAMOUNT SHAREHOLDERS TO CHOOSE BETWEEN THE TWO BIDS FIVE OTHER TAKEOVER STOCK TRADERS WHO SAID THEY EACH OWNED MORE THAN ONE MILLION PARAMOUNT SHARES BUT WHO ASKED NOT TO BE IDENTIFIED SAID THEY ALSO HAD TENDERED TO VIACOM A FEW TRADERS WITH A SMALLER NUMBER OF SHARES SAID THEY WERE BACKING Q. V. C. YESTERDAY Q. V. C. TOOK A STEP THAT APPEARED TO BE AIMED AT POSSIBLE FUTURE LITIGATION IF THE CONTEST WAS CLOSE OR VIACOM FAILED TO GAIN THE NEEDED FIFTY POINT ONE PERCENT THE HOME SHOPPING COMPANY APPEALED TO PARAMOUNT'S BOARD TO RECONSIDER ITS RECOMMENDATION THAT SHAREHOLDERS ACCEPT THE VIACOM OFFER NOTING THAT THE Q. V. C.'S CASH AND STOCK BID HAS RISEN IN VALUE ONE REASON THE Q. V. C. OFFER HAD GAINED IN VALUE IS THAT Q. V. C. WHICH ISSUED A STATEMENT SUNDAY VOWING NOT TO RAISE ITS BID WAS LOOKING LIKE THE LIKELY LOSER INVESTORS ASSUMING VIACOM WOULD WIN AND ISSUE MILLIONS OF NEW VIACOM SHARES TO ACQUIRE PARAMOUNT HAVE BEEN SELLING VIACOM STOCK AS A RESULT THE BOARD RESPONDED TO THE Q. V. C. REQUEST BY REAFFIRMING ITS RECOMMENDATION OF THE VIACOM BID YESTERDAY Q. V. C. STOCK ROSE ONE POINT SIX TWO FIVE DOLLARS TO FORTY EIGHT DOLLARS AND FIFTY CENTS A SHARE IN NASDAQ STOCK MARKET TRADING WHILE VIACOM CLASS B. NONVOTING SHARES FELL ONE DOLLAR AND SEVENTY FIVE CENTS A SHARE TO TWENTY NINE POINT EIGHT SEVEN FIVE DOLLARS ON THE AMERICAN STOCK EXCHANGE BOTH STOCKS MOVED IN RESPONSE TO Q. V. C.'S SUNDAY STATEMENT WHICH READ LIKE A CONCESSION OF DEFEAT SOME WALL STREET EXPERTS CONSIDER THE VIACOM Q. V. C. BATTLE FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT TO HAVE BEEN ONE OF THE GREATEST TAKEOVER BATTLES OF THE PAST FIFTEEN YEARS IT HAS PITTED FORMER PARAMOUNT STUDIO CHIEF BARRY DILLER NOW CHAIRMAN OF Q. V. C. AGAINST HIS FORMER BOSS PARAMOUNT CHAIRMAN MARTIN DAVIS AT THE BEGINNING OF THE BIDDING BATTLE MR. DAVIS APPEARED TO HAVE NEGOTIATED A FRIENDLY DEAL WITH VIACOM IN ORDER TO KEEP HIS COMPANY OUT OF MR. DILLER'S HANDS AND IT SAW MR. DILLER AND VIACOM CHAIRMAN SUMNER REDSTONE NEGOTIATE SEVERAL BILLION DOLLAR ALLIANCES WITH OTHER COMPANIES IN ORDER TO STRENGTHEN THEIR BALANCE SHEETS TO RAISE THEIR PARAMOUNT BIDS MR. DILLER HOOKED UP WITH FIVE OTHER COMPANIES LED BY BELLSOUTH CORPORATION WHICH AGREED TO INVEST TWO BILLION DOLLARS AND MR. REDSTONE PUT TOGETHER AN EIGHT POINT FOUR BILLION DOLLAR MERGER WITH BLOCKBUSTER ENTERTAINMENT CORPORATION THEIR EFFORT WAS AIMED AT GAINING CONTROL OF THE LAST MAJOR INDEPENDENT HOLLYWOOD STUDIO AT A TIME WHEN COMPETING WOULD BE DISTRIBUTORS OF ENTERTAINMENT FROM CABLE T. V. COMPANIES TO REGIONAL BELL OPERATING COMPANIES ARE VYING FOR CONTROL OF PROGRAMMING IN ORDER TO GAIN AN EDGE FOR THEIR DISTRIBUTION SYSTEM AS THEIR COMPETING TECHNOLOGIES EVOLVE LAURA LANDRO CONTRIBUTED TO THIS ARTICLE THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT A. N. R. PIPELINE COMPANY ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF DEBENTURES DUE FEBRUARY FIFTEENTH TWO THOUSAND TWENTY FOUR PRICED AS SEVEN POINT THREE SEVEN FIVES AT NINETY NINE POINT TWO EIGHT TO YIELD SEVEN POINT FOUR THREE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF NINETY BASIS POINTS ABOVE TREASURYS RATED B. A A TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INCORPORATED A. N. R. PIPELINE IS A UNIT OF COASTAL CORPORATION BANQUE PARIBAS NEW YORK BRANCH THREE HUNDRED MILLION DOLLARS OF NOTES DUE MARCH FIRST TWO THOUSAND NINE PRICED AS SIX POINT EIGHT SEVEN FIVES AT NINETY NINE POINT TWO ONE FIVE TO YIELD SIX POINT NINE SIX PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED TWO BASIS POINTS ABOVE THE FIVE POINT SEVEN FIVE PERCENT TREASURY MATURING IN AUGUST TWO THOUSAND THREE RATED SINGLE A TWO BY MOODY'S AND SINGLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH AND COMPANY FEDERAL FARM CREDIT BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF MEDIUM TERM NOTES DUE FEBRUARY TWENTY SECOND NINETEEN NINETY SIX PRICED INITIALLY AT PAR TO YIELD FOUR POINT FOUR FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY NORTEK INCORPORATED ONE HUNDRED NINETY MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE MARCH FIRST TWO THOUSAND FOUR PRICED AS NINE POINT EIGHT SEVEN FIVES AT NINETY NINE POINT TWO ONE FOUR TO YIELD TEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED C. A. A. BY MOODY'S AND TRIPLE C. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS AND COMPANY BREED TECHNOLOGIES INCORPORATED TWO POINT EIGHT MILLION COMMON SHARES PRICED AT TWENTY EIGHT DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY LAZARD FRERES INDIA FUND INCORPORATED INITIAL OFFERING OF THIRTY FIVE MILLION COMMON SHARES PRICED AT FIFTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER AND COMPANY HEALTHCARE REALTY TRUST INCORPORATED SIX POINT TWO MILLION COMMON SHARES PRICED AT TWENTY ONE POINT THREE SEVEN FIVE DOLLARS EACH ACCORDING TO THE COMPANY CO MANAGERS OF THE UNDERWRITING GROUP ARE DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION SMITH BARNEY SHEARSON INCORPORATED AND EQUITABLE SECURITIES CORPORATION A. B. B. INTERNATIONAL FINANCE N. V. SWISS SWEDISH PARENT TWO HUNDRED BILLION ITALIAN LIRE OF EIGHT POINT ONE TWO FIVE PERCENT EUROBONDS DUE MARCH TENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT FIVE FIVE VIA DEUTSCHE BANK A. G. LONDON BONDS YIELD EIGHT POINT ONE NINE PERCENT AFTER FEES KEEP WELL AGREEMENT WITH A. B. B. ASEA BROWN BOVERI LIMITED FEES TWO CREDITO ITALIANO ITALY TWO HUNDRED BILLION ITALIAN LIRE OF FLOATING RATE EURONOTES DUE MARCH TENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT TWO FIVE FOR OWN ACCOUNT REOFFERED AT NINETY NINE POINT NINE PAYABLE QUARTERLY AT ZERO POINT TWO FIVE POINT OVER THREE MONTH LONDON INTERBANK OFFERED RATE FEES ZERO POINT FIVE CREDIT LOCAL DE FRANCE FRENCH AGENCY TWO HUNDRED FIFTY MILLION CANADIAN DOLLARS OF SIX POINT SEVEN FIVE PERCENT EUROBONDS DUE MARCH TWENTY FIRST TWO THOUSAND SIX AT ISSUE PRICE ONE HUNDRED ONE VIA PARIBAS CAPITAL MARKETS REOFFERED AT NINETY NINE POINT ONE TWO FIVE TO YIELD SIX POINT EIGHT SIX PERCENT A SPREAD OF TWENTY BASIS POINTS ABOVE TEN YEAR CANADIAN GOVERNMENT ISSUE FEES TWO POINT TWO FIVE KOMMUNINVEST I SVERIGE A. B. SWEDISH AGENCY ONE HUNDRED MILLION DOLLARS OF FIVE POINT SIX TWO FIVE PERCENT EUROBONDS DUE MARCH SIXTEENTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT VIA FUJI INTERNATIONAL FINANCE P. L. C. BONDS YIELD FIVE POINT SIX SEVEN PERCENT A MARGIN OF TWENTY EIGHT BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ZERO POINT THREE SUMITOMO HEAVY INDUSTRIES LIMITED JAPAN SIX BILLION YEN OF FLOATING RATE EURONOTES DUE MARCH TENTH NINETEEN NINETY EIGHT AT ISSUE PRICE ONE HUNDRED POINT TWO FIVE VIA SUMITOMO FINANCE INTERNATIONAL P. L. C. REOFFERED AT PAR PAYABLE QUARTERLY AT THREE MONTH LIBOR PLUS FORTY TWO POINT FIVE BASIS POINTS PUT OPTION EXERCISABLE AT PAR EVERY YEAR SEPTEMBER TENTH IF STOCKHOLDERS' EQUITY FALLS BELOW TWENTY BILLION YEN FEES ZERO POINT THREE SUMITOMO HEAVY INDUSTRIES LIMITED JAPAN SIX BILLION YEN OF THREE POINT FOUR PERCENT EUROBONDS DUE JUNE THIRD NINETEEN NINETY EIGHT AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR FIVE VIA DAIWA EUROPE LIMITED REOFFERED AT ONE HUNDRED POINT ONE TWO FIVE TO YIELD THREE POINT THREE SIX FIVE PERCENT PUT OPTION EXERCISABLE AT PAR EVERY YEAR SEPTEMBER TENTH IF STOCKHOLDERS' EQUITY FALLS BELOW TWENTY BILLION YEN FEES ONE POINT SIX TWO FIVE SAME STORE SALES ROSE ONLY SLIGHTLY AND PROFIT MARGINS FELL BUT ZALE CORPORATION DALLAS REPORTED AN EARNINGS TURNAROUND IN ITS FISCAL THIRD QUARTER THE NATION'S LARGEST JEWELRY RETAILER REPORTED NET INCOME OF FORTY ONE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND NINETEEN CENTS A SHARE IN THE DECEMBER THIRTY FIRST PERIOD ITS FIRST FULL QUARTER SINCE EMERGING FROM BANKRUPTCY COURT PROCEEDINGS THAT COMPARED WITH A YEAR EARLIER LOSS OF SEVENTEEN POINT EIGHT MILLION DOLLARS THE COMPANY SAID YEAR EARLIER PER SHARE FIGURES WEREN'T COMPARABLE BECAUSE ITS OLD STOCK WAS CANCELED UNDER THE REORGANIZATION PLAN THAT TOOK EFFECT JULY THIRTIETH THE YEAR EARLIER LOSS RESULTED LARGELY FROM RESTRUCTURING COSTS OF NINETY TWO POINT ONE MILLION DOLLARS INCLUDING FORTY ONE POINT SEVEN MILLION DOLLARS TO COVER THE CLOSING OF ONE HUNDRED SEVENTY FIVE STORES IN EARLY NINETEEN NINETY THREE QUOTE THE REASON THERE WAS AN IMPROVEMENT WAS BECAUSE OF THAT CHARGE QUOTE MERRILL WERTHEIMER THE COMPANY'S CONTROLLER SAID SAME STORE SALES AT STORES OPEN FOR AT LEAST A YEAR ROSE ONLY ONE POINT SIX PERCENT IN THE QUARTER FROM A YEAR EARLIER OVERALL SALES DECLINED SEVEN PERCENT TO THREE HUNDRED NINETY SIX POINT FIVE MILLION DOLLARS FROM FOUR HUNDRED TWENTY EIGHT POINT TWO MILLION DOLLARS PRIMARILY BECAUSE OF STORE CLOSINGS ZALE'S MARGINS FELL TO THIRTY SIX POINT NINE PERCENT FROM THIRTY SEVEN POINT TWO PERCENT A YEAR EARLIER MR. WERTHEIMER SAID DETROIT TOOL AND ENGINEERING COMPANY NEWLY NAMED DT INDUSTRIES INCORPORATED AN INITIAL OFFERING OF FOUR POINT FIVE MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION OF SIX HUNDRED SEVENTY FIVE THOUSAND SHARES VIA C. S. FIRST BOSTON CORPORATION MORGAN STANLEY AND COMPANY AND WILLIAM SCHRODER AND COMPANY FABWEL INCORPORATED AN INITIAL OFFERING OF TWO POINT FIVE MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR THREE HUNDRED SEVENTY FIVE THOUSAND SHARES VIA MCDONALD AND COMPANY SECURITIES INCORPORATED AND NATWEST SECURITIES LIMITED FIRST ALERT INCORPORATED AN INITIAL OFFERING OF AS MANY AS FIVE POINT SEVEN MILLION COMMON SHARES VIA SMITH BARNEY SHEARSON INCORPORATED AND MORGAN STANLEY GULF SOUTH MEDICAL SUPPLY INCORPORATED AN INITIAL OFFERING OF ONE MILLION NINE HUNDRED FIFTY THOUSAND COMMON SHARES VIA WILLIAM BLAIR AND COMPANY AND MONTGOMERY SECURITIES INTERNATIONAL CONTROLS CORPORATION AN OFFERING OF AS MUCH AS TWO HUNDRED TWENTY FIVE MILLION DOLLARS OF SENIOR SECURED NOTES VIA ALEXANDER BROWN AND SONS INCORPORATED AND SPP HAMBRO AND COMPANY J. B. POINDEXTER AND COMPANY AN OFFERING OF AS MUCH AS ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF SENIOR NOTES VIA MORGAN STANLEY NUMAR CORPORATION AN INITIAL OFFERING OF ONE POINT EIGHT MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR TWO HUNDRED SEVENTY THOUSAND SHARES VIA WERTHEIM SCHRODER AND COMPANY AND SIMMONS AND COMPANY INTERNATIONAL SCIENTIFIC GAMES HOLDING CORPORATION AN OFFERING OF TWO MILLION FIVE HUNDRED SEVENTY NINE THOUSAND TWO HUNDRED FIVE COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR THREE HUNDRED EIGHTY SIX THOUSAND EIGHT HUNDRED EIGHTY ADDITIONAL VIA ROBINSON HUMPHREY COMPANY SALOMON BROTHERS INCORPORATED AND RAYMOND JAMES AND ASSOCIATES INCORPORATED CORPORATE JARGON IF YOU DON'T KNOW THE INSIDE SKINNY IT CAN BE A JUMBLE AT COORS COMPANY NEW BEERS ARE REFERRED TO AS QUOTE THE LIQUID QUOTE AS IN QUOTE THE PROBLEM WASN'T THE MARKETING BUT THE LIQUID QUOTE AT MICROSOFT CORPORATION EXECUTIVES REFER TO AN EMPLOYEE'S BANDWIDTH SOMETIMES OFFERING THAT GUY DOESN'T HAVE THE BANDWIDTH TO HANDLE THAT PROJECT NOTES COMPUTER CONSULTANT CHERYL CURRID ONE FOR LINGUISTS TO CRINGE OVER A NEW VERB INCENTIVIZE MEANING TO REVISE PAY ARRANGEMENTS FOR MANAGERS COMPANIES COME UP WITH DERIVATIONS OF THEIR NAMES AT WAL MART STORES INCORPORATED EXECUTIVES WAL MARTIZE EMPLOYEES AT FIRMS THEY ACQUIRE THAT IS TRAIN THEM TO SMILE OFTEN AND OFFER EXTRA SERVICE AT INTEL CORPORATION OFFICIALS USE THE IZE FORMULATION FOR TRYING TO GET INVOLVED IN A NEW BUSINESS THESE DAYS THE COMPANY IS TRYING TO INTELLIZE THE VIDEO TELECONFERENCING INDUSTRY NEW YORK MARKETING CONSULTANT FRED PFAFF WHO USES INCENTIVIZE IN SPEECHES WONDERS WHAT WOULD MISS ADCOCK MY FIRST GRADE TEACHER SAY A JURY OF YOUR BIG FIRM PEERS JURY DUTY GIVES SMALL EMPLOYERS HEADACHES SMALL BUSINESS OWNERS OFTEN SCRAMBLE TO KEEP THEMSELVES OR KEY WORKERS OUT OF THE JURY BOX CRAIG HATKOFF A PRINCIPAL IN THE NEW YORK REAL ESTATE FIRM VICTOR CAPITAL GROUP IS BATTLING THE STATE AFTER FIVE POSTPONEMENTS QUOTE THERE'S NEVER A CONVENIENT TIME FOR A SMALL BUSINESS QUOTE HE SAYS NEW YORK RESTAURATEUR JEFF BLISS WENT BEFORE AN ADMINISTRATIVE CLERK TO GET A CHEF AT TRENDY MESA GRILL OUT OF HIS ASSIGNMENT ON THE FINAL SUMMONS SLIGHTLY LARGER WORKPLACES USE A VARIETY OF FILL INS FOR WORKERS DOING THEIR CIVIC DUTY MILLER TOOL AND DIE OF JACKSON MICHIGAN CROSSTRAINS ITS EIGHTY EMPLOYEES TO SUBSTITUTE FOR KEY WORKERS GALA HALLMARK IN DEARBORN MICHIGAN USES COLLEGE STUDENTS AND OTHER PART TIMERS TO KEEP THINGS RUNNING UNIONS TRY TO REGAIN THEIR EDGE ON HEALTH CARE AFTER A SLOW START BITTERNESS OVER NAFTA CRIMPS THEIR FINANCIAL CONTRIBUTIONS TO HEALTH CARE REFORM AND THEY HAVE DONE LITTLE ASIDE FROM TRAINING CAMPAIGN COORDINATORS HEALTH CARE CAMPAIGN COFFERS COLLECT JUST OVER ONE MILLION DOLLARS SO FAR AN AMOUNT EXPECTED BY THE END OF LAST YEAR THE HEALTH CARE REFORM PROJECT THE ADVERTISING CAMPAIGN FINANCED IN PART BY LABOR IS BEING OUTSPENT SEVEN TO ONE BY THE HEALTH CARE INDUSTRY FIGHTING THE CLINTON PLAN SAYS A. F. L. C. I. O.'S REX HARDESTY UNIONS SAY THEY HAVE HELD OFF INTENTIONALLY AND NOW WILL PICK UP THE PACE THEY EXPECT TO SEND OUT THREE HUNDRED SIXTY THOUSAND PIECES OF DIRECT MAIL TO CONSTITUENTS OF SEVENTY TWO KEY MEMBERS OF CONGRESS DURING THE PRESIDENT'S DAY RECESS RADIO ADS WILL RUN IN SWING DISTRICTS WE'RE REALLY INTO OUR LOBBYING EFFORT NOW SAYS JOANNA REAGAN POLITICAL DIRECTOR FOR THE BRICKLAYERS' UNION UNION LETTERS TO THEIR MEMBERS WILL CRITICIZE IN PARTICULAR THE COMPETING PLAN OFFERED BY TENNESSEE DEMOCRATIC REPRESENTATIVE JIM COOPER WANT A COMMITTED WORKER HIRE A NEW ONE EMPLOYEES GROW MUCH LESS LOYAL AFTER TWO YEARS ON THE JOB SAYS A STUDY OF YOUNG MANAGERS BY RESEARCHERS AT NEW YORK UNIVERSITY AND NORTHWESTERN UNIVERSITY EXPERIENCED WORKERS ALSO FEEL THEY DESERVE FASTER PROMOTIONS AND HIGH PAY ACCORDING TO THE STUDY IN THE ACADEMY OF MANAGEMENT JOURNAL FOR LIGHTER FINES PUT OUT THE WELCOME MAT FOR SAFETY INSPECTORS A REVIEW OF OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION DATA BY OSHA DATA OF MORRISTOWN N. J. SHOWS COMPANIES THAT INITIALLY DENIED ACCESS TO OSHA INSPECTORS WERE CHARGED WITH ALMOST TWICE AS MANY VIOLATIONS PER INSPECTION AND THE SAFETY AGENCY SOUGHT FINES AGAINST THEM NEARLY DOUBLE THOSE AGAINST MORE COOPERATIVE FIRMS SPLIT DECISION A HARRIS POLL SHOWS THREE QUARTERS OF AMERICANS BELIEVE THAT UNIONS IMPROVE WAGES AND WORKING CONDITIONS BUT SEVENTY PERCENT SAY UNIONS ARE TOO INVOLVED IN POLITICAL ACTIVITIES AND NEARLY TWO THIRDS THINK UNIONS FIGHT HARDER AGAINST CHANGE THAN FOR IT TELECOMMUTING GETS A BOOST FROM THE LOS ANGELES EARTHQUAKE THE BATTERED HIGHWAYS BECOME A MARKETING TOOL PACIFIC BELL SIGNS UP ONE THOUSAND FOUR HUNDRED NINETY NEW CUSTOMERS FOR SERVICES SUCH AS VOICE MAIL AND CALL WAITING HEAVILY DAMAGED CALIFORNIA STATE UNIVERSITY AT NORTHRIDGE SETS UP SPACE FOR ONE THOUSAND TELECOMMUTERS TO USE SEMIREMOTE SERVICES THEY CAN TRAVEL A SHORT DISTANCE TO THE CAMPUS AVOIDING DRIVING ALL THE WAY TO THEIR OFFICES A TELECOMMUTING CENTER THAT NEWHALL LAND AND FARMING COMPANY SET UP IN VALENCIA BEFORE THE QUAKE HAS LURED SO MANY CUSTOMERS THAT THE COMPANY PLANS TO BUILD AGAIN NEWHALL PARTNER STEVE VALENZIANO PREDICTS THAT THE DEMAND FOR OUR SPACE WILL FALL OFF IN THE NEXT YEAR OR SO BUT EVEN AFTER THE FREEWAYS ARE BACK IN ACTION HE SAYS SOME COMPANIES ARE GOING TO WANT TO CONTINUE TO DO IT TO SOME EXTENT EVEN ADVOCATES WONDER IF THE TREND WILL CONTINUE ONCE THE HIGHWAYS ARE FIXED A PAC BELL SPOKESMAN SAYS TELECOMMUTING WORKS THOUGH IT'S UNCLEAR HOW MANY NEW USERS WILL BE TELECOMMUTING QUOTE A YEAR FROM NOW QUOTE THE CHECKOFF EXECUTIVE RECRUITERS SURVEYED BY NEWSLETTER WORKPLACE AMERICA RECEIVED A RECORD ONE POINT SIX MILLION RESUMES IN THE PAST YEAR THEY HAD ONLY ELEVEN THOUSAND NINE HUNDRED POSITIONS TO FILL RESUMES WE NEVER FINISHED READING AN APPLICANT TO THIS NEWSPAPER WRITES I WOULD LIKE TO BE CONSIDERED FOR A PHOTOGRAPHY POSITION STOCK PRICES WERE MIXED AS FEARS OF TRADE WAR BETWEEN THE U. S. AND JAPAN RATTLED FINANCIAL MARKETS THE U. S. DOLLAR PLUNGED ALMOST FIVE YEN AGAINST THE JAPANESE CURRENCY WHILE THE TREASURY'S THIRTY YEAR BOND LOST MORE THAN ONE HALF POINT LIFTING ITS YIELD TO SIX POINT FOUR FIVE PERCENT ALL IN REACTION TO FRIDAY'S COLLAPSE OF U. S. JAPAN TRADE TALKS STOCKS FARED BETTER BUT STILL POSTED A LACKLUSTER PERFORMANCE THE DOW JONES INDUSTRIAL AVERAGE ADDED NINE POINT TWO EIGHT OR ZERO POINT TWO FOUR PERCENT TO THREE THOUSAND NINE HUNDRED FOUR POINT OH SIX WHILE BROAD BASED BAROMETERS OF ACTION ON THE NEW YORK STOCK EXCHANGE BARELY MOVED NEARLY HALF OF THE DOW'S GAIN CAME FROM ONE STOCK UNITED TECHNOLOGIES WHICH RALLIED TWO TO SIXTY SEVEN AND THREE EIGHTHS ADVANCING BIG BOARD ISSUES NARROWLY LED DECLINERS ONE THOUSAND ONE HUNDRED THIRTY FOUR TO ONE THOUSAND TWENTY NINE VOLUME ON THE EXCHANGE WAS MODERATELY ACTIVE AT ABOUT TWO HUNDRED SIXTY THREE POINT ONE MILLION SHARES JUST TWO HUNDRED ELEVEN POINT EIGHT MILLION TRADED FRIDAY BUT THAT SESSION CLOSED EARLY BECAUSE OF SEVERE WINTER WEATHER CONDITIONS IN THE NORTHEAST YESTERDAY'S WAS THE FIRST FULL SESSION SINCE JANUARY TWENTY FOURTH THAT VOLUME DIDN'T TOP THE ACTIVE THREE HUNDRED MILLION MARK STOCKS STARTED THE DAY HIGHER PUSHING THE DOW INDUSTRIALS TO A GAIN OF MORE THAN TWENTY FIVE POINTS AROUND MIDDAY BUT THE OPTIMISM EVAPORATED AS THE DOLLAR'S DECLINE INTENSIFIED AND BONDS TURNED DECIDEDLY LOWER THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX INCHED UP ZERO POINT ZERO FIVE OR ZERO POINT ZERO ONE PERCENT TO FOUR HUNDRED SEVENTY POINT TWO THREE AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED ZERO POINT ZERO FIVE OR ZERO POINT TWO PERCENT TO TWO HUNDRED SIXTY ONE POINT TWO SIX THE NASDAQ COMPOSITE INDEX HOWEVER JUMPED FOUR POINT OH SIX OR ZERO POINT FIVE TWO PERCENT TO SEVEN HUNDRED EIGHTY FIVE POINT FOUR FIVE TECHNOLOGY STOCKS PLAYED A LARGE ROLE WITH LOTUS DEVELOPMENT UP TWO AND ONE HALF TO FIFTY EIGHT AND ONE QUARTER MICROSOFT UP THREE EIGHTHS TO SEVENTY NINE AND ONE EIGHTH AND ORACLE SYSTEMS UP ONE TO THIRTY TWO AND THREE QUARTERS INSURANCE STOCKS ALSO WERE STRONG THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX LOST TWO POINT THREE TWO OR ZERO POINT FOUR NINE PERCENT TO FOUR HUNDRED SEVENTY FOUR POINT NINE ONE PARAMOUNT COMMUNICATIONS LOST THREE QUARTERS TO SEVENTY SIX AND ONE EIGHTH Q. V. C. NETWORK RULED OUT CHANGING ITS TEN BILLION DOLLAR OFFER FOR THE GIANT NEW YORK MEDIA COMPANY INCREASING THE ODDS THAT PARAMOUNT SHAREHOLDERS WILL CHOOSE A RIVAL OFFER FROM VIACOM THE DEADLINE FOR BOTH OFFERS WAS TWELVE OH ONE A. M. TODAY Q. V. C. SHARES JUMPED ONE AND FIVE EIGHTHS TO FORTY EIGHT AND ONE HALF ON THE NASDAQ STOCK MARKET WHILE VIACOM CLASS B. SKIDDED ONE AND THREE QUARTERS TO TWENTY NINE ON THE AMEX MEANWHILE BLOCKBUSTER ENTERTAINMENT DROPPED TO TWENTY FOUR ON THE BIG BOARD IT HAS AGREED TO MERGE WITH VIACOM BELLSOUTH WHICH IS BACKING Q. V. C. LOST ONE AND ONE QUARTER TO FIFTY SIX CANADIAN PACIFIC DROPPED ONE TO SIXTEEN AND THREE QUARTERS AFTER THE RAILROAD COMPANY IN MONTREAL SAID IT PLANS TO SELL TWENTY TWO MILLION ORDINARY SHARES THROUGH AN UNDERWRITTEN OFFERING THE SALE WILL GENERATE FOUR HUNDRED EIGHTY FOUR MILLION CANADIAN DOLLARS THREE HUNDRED SIXTY POINT THREE MILLION U. S. DOLLARS IN PROCEEDS FOR THE COMPANY IT EXPECTS TO COMPLETE THE SALE NEXT MONTH PRECIOUS METALS STOCKS JUMPED ALONG WITH THE PRICE OF GOLD NEWMONT MINING JUMPED ONE AND ONE EIGHTH TO FIFTY THREE AND ONE EIGHTH HOMESTAKE MINING INCREASED ONE HALF TO TWENTY TWO AND ON THE AMEX ECHO BAY MINES ADDED ONE QUARTER TO TWELVE AND ONE HALF GOLD FOR APRIL DELIVERY INCREASED THREE DOLLARS AND NINETY CENTS TO THREE HUNDRED EIGHTY FIVE DOLLARS AND SIXTY CENTS AN OUNCE IN NEW YORK AETNA LIFE AND CASUALTY JUMPED ONE AND FIVE EIGHTHS TO SIXTY FOUR AND THREE EIGHTHS RONALD COMPTON CHAIRMAN OF THE HARTFORD CONNECTICUT INSURER SAID HE EXPECTS THE COMPANY TO POST OPERATING EARNINGS OF SIX DOLLARS AND FIFTY CENTS A SHARE THIS YEAR REVERSING A LOSS FROM CONTINUING OPERATIONS OF FIVE DOLLARS AND FIFTY FOUR CENTS IN NINETEEN NINETY THREE SCIMED LIFE SYSTEMS SKIDDED TWO AND FIVE EIGHTHS TO THIRTY NINE AND FIVE EIGHTHS THE MEDICAL DEVICE MAKER IN MAPLE GROVE MINNESOTA SAID ITS RESULTS FOR THE FOURTH QUARTER THAT ENDS FEBRUARY TWENTY EIGHTH HAVE BEEN DEPRESSED BY LOWER THAN EXPECTED SALES IN JAPAN IT BLAMED THE SHORTFALL ON HIGH INVENTORY LEVELS AT HOSPITALS IN JAPAN AND PREDICTED IMPROVED SALES THERE LATER IN ITS NINETEEN NINETY FIVE FISCAL YEAR M. C. N. INCREASED ONE AND ONE EIGHTH TO THIRTY EIGHT AND ONE HALF THE DETROIT COMPANY'S MICHIGAN CONSOLIDATED GAS UNIT IS SEEKING PERMISSION FROM STATE REGULATORS TO BUILD PIPELINE FACILITIES THAT WILL BE USED TO SERVE A NATURAL GAS COGENERATION PLANT AT A DOW CHEMICAL SITE DOW CHEMICAL WAS UP ONE QUARTER TO SIXTY THREE AND THREE QUARTERS MINNESOTA MINING AND MANUFACTURING INCREASED ONE TO ONE HUNDRED FIVE AND SEVEN EIGHTHS AFTER THE SAINT PAUL MINNESOTA COMPANY DECLARED A TWO FOR ONE STOCK SPLIT AND INCREASED ITS QUARTERLY DIVIDEND THE PAYOUT WAS RAISED TO EIGHTY EIGHT CENTS FROM EIGHTY THREE CENTS ON A PRESPLIT BASIS IN ADDITION THE COMPANY SAID IT WILL REPURCHASE UP TO TWELVE MILLION PRESPLIT SHARES JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID THE DOLLAR'S BIG SELL OFF IS TROUBLING FOR TWO MAJOR REASONS FIRST WEAKNESS IN THE CURRENCY COULD INCREASE INFLATIONARY PRESSURES IN THE U. S. ECONOMY SECOND IT COULD CAUSE JAPANESE INVESTORS TO LIQUIDATE POSITIONS IN U. S. STOCKS AND BONDS RISING RATES AND A WEAKENING DOLLAR WERE TWO OF THE INGREDIENTS THAT SET OFF THE NINETEEN EIGHTY SEVEN STOCK MARKET CRASH ANALYSTS DON'T THINK THE MARKET SITUATION NOW IS THAT PRECARIOUS BUT THE SEVERE WEAKNESS IN THE DOLLAR IS QUOTE CERTAINLY SERIOUS IF IT CONTINUES QUOTE SAID ARGUS'S MR. SOLLOWAY A VERY WEAK DOLLAR IS IN NOBODY'S INTEREST MEANWHILE PAUL RABBITT QUANTITATIVE ANALYST AT OPPENHEIMER AND COMPANY SAID HE DOESN'T EXPECT INTEREST RATES TO RISE TO A LEVEL THAT WOULD ENTICE PEOPLE TO BUY INTEREST BEARING INVESTMENTS INSTEAD OF STOCKS INVESTORS WON'T SHUN STOCKS UNTIL SHORT TERM RATES ADVANCE TO BETWEEN THREE POINT SEVEN PERCENT AND FOUR PERCENT FROM AROUND THREE POINT THREE PERCENT NOW UNITED TECHNOLOGIES ADVANCED AFTER MORGAN STANLEY AND COMPANY LIFTED ITS INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD ANALYST JENNIFER A. POKRZYWINSKI IN PART CITED THE HARTFORD CONNECTICUT AEROSPACE COMPANY'S PLAN DISCLOSED FRIDAY TO SELL ITS NONCORE ASSETS AN INITIAL OFFERING OF THIRTY FOUR MILLION COMMON SHARES OF INDIA FUND INCORPORATED WAS PRICED AT FIFTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER AND COMPANY THE INDIA FUND IS A CLOSED END MUTUAL FUND FEDERAL JUDGE WILLIAM DWYER IS BEST KNOWN FOR BANNING THE SALE OF PACIFIC NORTHWEST TIMBER TO PROTECT THE SPOTTED OWL NOW HE HAS BECOME THE JUDICIAL PROTECTOR OF ANOTHER CONTROVERSIAL ENDANGERED SPECIES INCUMBENT MEMBERS OF CONGRESS HE HAS DECLARED THAT THEIR CHIEF HABITAT CAPITOL HILL CAN'T BE DISTURBED BY A MAJORITY OF VOTERS WHO WANT MORE THINNING OF THE DEADWOOD THEY SEE THERE LAST WEEK JUDGE DWYER ISSUED A SWEEPING RULING THAT THE TERM LIMIT LAW PASSED BY WASHINGTON STATE IN NINETEEN NINETY TWO VIOLATED NOT ONLY THE CONSTITUTION BUT THE FIRST AND FOURTEENTH AMENDMENTS AS WELL AN APPEAL WILL BE FILED AND IS LIKELY TO REACH THE U. S. SUPREME COURT NEXT YEAR HOUSE SPEAKER TOM FOLEY HAS BEEN THE PRIME MOVER BEHIND THE LITIGATION TO BLOCK TERM LIMITS IN HIS HOME STATE THERE ARE MANY ARGUMENTS AGAINST TERM LIMITS BUT THE ONE THAT HOLDS THEY VIOLATE THE FIRST AND FOURTEENTH AMENDMENTS IS FRANKLY A STRETCH USING THAT LOGIC TERM LIMIT LAWS THAT HAVE RESTRICTED MORE THAN HALF THE NATION'S GOVERNORS FOR DECADES WOULD HAVE TO BE FOUND UNCONSTITUTIONAL STILL SUCH ARGUMENTS WERE USED IN NINETEEN NINETY ONE WHEN CALIFORNIA ASSEMBLY SPEAKER WILLIE BROWN CLAIMED HIS STATE'S TERM LIMIT LAW DISCRIMINATED AGAINST INCUMBENTS AND THEREBY VIOLATED THEIR RIGHT TO EQUAL PROTECTION OF THE LAWS UNDER THE FOURTEENTH AMENDMENT SPEAKER BROWN FURTHER CLAIMED THAT TERM LIMITS VIOLATED THE QUOTE ASSOCIATIONAL RIGHTS QUOTE GUARANTEED BY THE FIRST AMENDMENT CALIFORNIA'S SUPREME COURT REJECTED ALL OF MR. BROWN'S ARGUMENTS IN A SIX TO ONE DECISION UPHOLDING TERM LIMITS IT SAID THAT THERE WAS NO REASON WHY GOVERNORS SHOULD HAVE A LIMIT IMPOSED ON THEM WHILE STATE LEGISLATORS WERE ALLOWED PERMANENT TENURE IT NOTED THAT CURRENT INCUMBENT PROTECTIONS MEAN TERM LIMITS MAY GIVE VOTERS A GREATER CHOICE THAN THEY HAVE NOW IT ALSO FOUND THAT TERM LIMITS ALLOW VOTERS TO FREELY ASSOCIATE WITH OTHERS TO ADVANCE THEIR BELIEFS OR SUPPORT A TERM LIMITED INCUMBENT FOR ANOTHER OFFICE JUDGE DWYER'S DECISION COMPLETELY CONTRADICTS THE CALIFORNIA COURT AND WILL BE HOTLY ARGUED ON APPEAL HE FLATLY DECLARES THAT STATE TERM LIMITS UNCONSTITUTIONALLY ADD TO THE AGE RESIDENCY AND CITIZENSHIP QUALIFICATIONS IN THE CONSTITUTION BUT POWELL V. MCCORMACK THE NINETEEN SIXTY NINE SUPREME COURT DECISION HE RELIES ON HELD ONLY THAT CONGRESS COULDN'T ADD TO THE QUALIFICATIONS SINCE THEN THE SUPREME COURT HAS FREQUENTLY UPHELD MANY STATE LAWS RESTRICTING WHO CAN RUN FOR OFFICE GRIFFIN BELL WHO WAS JIMMY CARTER'S ATTORNEY GENERAL AND WAS LEAD COUNSEL FOR THE TERM LIMITS FORCES ISN'T SURPRISED BY JUDGE DWYER'S RULING THE SAME HIGH COURT THAT'S ALLOWED STATES IN THE PAST TO CONTROL THEIR OWN ELECTIONS WILL ACT LIKEWISE WHEN THIS CASE REACHES THEM HE SAYS MEANWHILE THERE'S A CHANCE THAT SPEAKER FOLEY MAY NOT EVEN BE REPRESENTING HIS DISTRICT WHEN HIS NINETEEN NINETY EIGHT TERM LIMIT KICKS IN IN NINETEEN NINETY TWO MR. FOLEY WON WITH ONLY FIFTY FIVE PERCENT OF THE VOTE AND A NEW FABRIZIO SLASH MCLAUGHLIN POLL OF HIS DISTRICT FINDS ONLY FORTY THREE PERCENT OF RESPONDENTS BELIEVE HE DESERVES RE ELECTION A STUNNING SEVENTY FOUR PERCENT BELIEVE SPEAKER FOLEY SHOULD DROP HIS SUIT TO OVERTURN THE VOTERS' PREFERENCE FOR TERM LIMITS INCUMBENTS WHO VIEW JUDGE DWYER'S RULING AS AN ALL CLEAR SIGNAL SHOULD THINK AGAIN MOST CAREER POLITICIANS AREN'T CUTE LIKE SPOTTED OWLS AND MOST JUDGES AND VOTERS AREN'T BOTHERED BY THE THOUGHT OF ENDANGERING THESE POLS FEW TEARS WILL BE SHED WHEN THEY'RE FORCED OUT FROM THEIR SANCTUARY AND RETURNED TO THE WILDS OF REAL LIFE FOKKER N. V. SAID IT WILL CUT AROUND ONE THOUSAND NINE HUNDRED JOBS IN NINETEEN NINETY FOUR AS PART OF A RESTRUCTURING PLAN ANNOUNCED THIS MONTH THE AMSTERDAM AEROSPACE COMPANY ALSO SAID IT WILL REDUCE PRODUCTION TO ABOUT FORTY AIRCRAFT A YEAR FROM ITS CURRENT ANNUAL PRODUCTION OF AROUND SIXTY EVEN WITH THE DEEP JOB CUTS SOME STOCK ANALYSTS SAY THEY DON'T EXPECT FOKKER TO SWING BACK INTO THE BLACK BEFORE NINETEEN NINETY SEVEN AND AFTER THAT THEY SEE LITTLE PROSPECT FOR STRONG PROFIT GAINS THE COMPANY SAID THAT THE REMAINING WORK FORCE AFTER THE CUT OF ONE THOUSAND NINE HUNDRED JOBS WILL TOTAL SLIGHTLY MORE THAN TEN THOUSAND PEOPLE FOKKER IS FIFTY ONE PERCENT CONTROLLED BY THE DEUTSCHE AEROSPACE A. G. ARM OF GERMANY'S DAIMLER BENZ A. G. MAGMA COPPER COMPANY SAID IT INCREASED THE RESERVES OF COPPER ORE AT ITS PENDING ROBINSON MINE NEAR ELY NEVADA BY TWENTY FIVE PERCENT TO TWO HUNDRED FIFTY TWO MILLION TONS OF ORE THE INCREASE BOOSTS RESERVES AT THE MINE SITE TO TWO POINT ONE BILLION POUNDS OF RECOVERABLE COPPER AND ONE POINT NINE MILLION OUNCES OF GOLD THE TUCSON COMPANY BOOSTED ITS TOTAL COPPER RESERVES BY FIFTY PERCENT OVER NINETEEN NINETY THREE TO SEVEN POINT SEVEN BILLION POUNDS ON JANUARY FIRST NINETEEN NINETY FOUR FROM FIVE BILLION POUNDS ON JANUARY FIRST NINETEEN NINETY THREE MAGMA RELEASED THE RESERVE NUMBERS AS PART OF THE QUOTE GROWTH STORY QUOTE IT WILL BEGIN SPREADING TO ANALYSTS IN MEETINGS TODAY WE'RE A COMPANY THAT'S HAD LIMITED RESERVES AND INCREASING ORE PRODUCTION SAID PRESIDENT AND CHIEF EXECUTIVE J. BURGESS WINTER IN AN INTERVIEW WE'RE EXCITED ABOUT THIS INCREASE IN RESERVES HARCOURT GENERAL INCORPORATED IS CONSIDERING THE SALE OF ITS INSURANCE BUSINESSES AS PART OF A PLAN TO STREAMLINE THE COMPANY AND FOCUS ON PUBLISHING THE MOVE FOLLOWS A SPINOFF OF HARCOURT'S MOVIE THEATER BUSINESS TO SHAREHOLDERS LAST SEPTEMBER THE INSURANCE BUSINESSES WITH THREE HUNDRED THIRTY MILLION DOLLARS IN ASSETS COULD SELL FOR FOUR HUNDRED MILLION DOLLARS OR MORE ANALYSTS SAID HARCOURT WHOSE THREE POINT SIX SIX BILLION DOLLARS IN ANNUAL REVENUE COMES PRIMARILY FROM PUBLISHING AND SPECIALTY RETAILING ACQUIRED THE INSURANCE BUSINESSES AS PART OF ITS PURCHASE OF PUBLISHER HARCOURT BRACE IN NOVEMBER NINETEEN NINETY ONE THE INSURANCE BUSINESSES WHICH PRIMARILY UNDERWRITE INDIVIDUAL LIFE HEALTH ACCIDENT AND CREDIT INSURANCE POLICIES AND SELL ANNUITY PRODUCTS CONTRIBUTED FIVE HUNDRED FORTY EIGHT MILLION DOLLARS TO HARCOURT'S NINETEEN NINETY THREE REVENUE AND SEVENTY POINT NINE MILLION DOLLARS TO OPERATING PROFIT INCLUDING TWENTY SEVEN POINT SEVEN MILLION DOLLARS IN CAPITAL GAINS IN FISCAL NINETEEN NINETY THREE ENDED OCTOBER THIRTY FIRST HARCOURT GENERAL HAD OPERATING PROFIT OF THREE HUNDRED FOURTEEN POINT THREE MILLION DOLLARS MARTIN ROMM AN ANALYST AT C. S. FIRST BOSTON INCORPORATED SAID A SALE OF THE INSURANCE COMPANIES WOULD BE A POSITIVE STEP BECAUSE HARCOURT DOESN'T INTEND TO ENLARGE THE BUSINESSES QUOTE A SALE WOULD CONVERT THE BUSINESSES TO CASH THE MARKET WILL GIVE HARCOURT CREDIT FOR THAT MR. ROMM SAID HARCOURT GENERAL SAID LAST DECEMBER IT MIGHT SELL THE OPERATIONS IF AN ATTRACTIVE PUBLISHING ACQUISITION CAME ALONG THAT REQUIRED ADDITIONAL FUNDS THE COMPANY WASN'T FREE TO SELL THE INSURANCE UNIT UNTIL NOVEMBER NINETEEN NINETY THREE BECAUSE OF TAX CONSIDERATIONS AND PLEDGES THAT IT MADE TO STATE INSURANCE COMMISSIONERS AT THE TIME OF THE HARCOURT BRACE ACQUISITION IT SAID PETER FARWELL A HARCOURT SPOKESMAN SAID THAT WHILE THE COMPANY IS LOOKING AGGRESSIVELY FOR INVESTMENT OPPORTUNITIES IN PUBLISHING NO DEALS ARE PENDING THE INSURANCE BUSINESSES BASED IN ORLANDO FLORIDA INCLUDE FEDERAL HOME LIFE INSURANCE COMPANY PHF LIFE INSURANCE COMPANY AND THE HARVEST LIFE INSURANCE COMPANY HARCOURT GENERAL INCORPORATED'S INSURANCE BUSINESSES HAVE THREE POINT TWO BILLION DOLLARS IN ASSETS NOT THREE HUNDRED THIRTY MILLION DOLLARS AS STATED IN AN ARTICLE IN YESTERDAY'S BUSINESS BRIEFS SECTION RICHARD RAINWATER A WELL KNOWN TEXAS INVESTOR FILED A STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL THIRTEEN MILLION THREE HUNDRED FIFTY THOUSAND SHARES IN A REAL ESTATE INVESTMENT TRUST AT TWENTY FIVE DOLLARS A SHARE THE SHARES WILL REPRESENT SIXTY SIX POINT THREE PERCENT OF THE EQUITY IN THE R. E. I. T. THE BALANCE WILL BE HELD BY MANAGEMENT AND INVESTORS WHO CONTRIBUTE PROPERTIES TO THE TRUST THE TRUST CRESCENT REAL ESTATE EQUITIES INCORPORATED WILL OWN UPSCALE RETAIL CENTERS OFFICE BUILDINGS AND SINGLE FAMILY SUBDIVISIONS IN DENVER AND TEXAS THE FILING REPORTED THAT THE COMPANY WILL HAVE SUBSTANTIALLY NO DEBT FOLLOWING THE THREE HUNDRED THIRTY FIVE MILLION DOLLAR OFFERING AND WILL HAVE A THREE HUNDRED MILLION DOLLAR LINE OF CREDIT THE FILING SAID TWO HUNDRED FORTY THREE POINT SEVEN MILLION DOLLARS OF THE PROCEEDS WILL BE USED TO REPAY DEBT SECURED BY MR. RAINWATER AND BY PROPERTIES THAT WILL BE HELD BY THE R. E. I. T. ABOUT SEVEN POINT FIVE MILLION DOLLARS RAISED BY THE FORMATION OF RESIDENTIAL DEVELOPMENT CORPORATIONS WILL BE USED TO PAY THE TAXES INCURRED AS CURRENT INVESTORS OF THE PROPERTIES TRANSFER THEIR HOLDINGS TO THE R. E. I. T.S THE CURRENT INVESTORS INCLUDE MR. RAINWATER ROSEWOOD GROUP AND A LONG LIST OF INDIVIDUALS MR. RAINWATER'S FORMATION OF A R. E. I. T. WAS EXPECTED AND IS PART OF A RUSH OF R. E. I. T.S THAT HAVE COME ON THE MARKET OVER THE PAST YEAR OR SO LOW INTEREST RATES ON MONEY MARKETS HAVE SENT INVESTORS SCRAMBLING FOR ALTERNATIVE INVESTMENTS WITH HIGHER YIELDS AND R. E. I. T.S HAVE BEEN OFFERING DIVIDEND YIELDS OF SIX POINT FIVE PERCENT OR MORE NORWAY'S TRADE SURPLUS NARROWED SEVENTEEN PERCENT TO FOUR POINT SIX BILLION KRONER SIX HUNDRED EIGHT POINT ONE MILLION DOLLARS IN JANUARY FROM FIVE POINT SIX BILLION KRONER A YEAR EARLIER STATISTICS NORWAY THE NORWEGIAN STATISTICAL AGENCY SAID THE BOARD OF LWT HOLDINGS P. L. C. A BRITISH TELEVISION CONCERN URGED SHAREHOLDERS TO REJECT THE FINAL HOSTILE TAKEOVER OFFER OF LEISURE CONCERN GRANADA GROUP P. L. C. AS TOO LOW LWT ALSO AGAIN QUESTIONED GRANADA'S MOTIVES A FREQUENT DEFENSE DURING THE TWO MONTH BATTLE QUOTE GRANADA NEEDS TO BUY LWT'S EARNINGS TO OFFSET THE LONG TERM DECLINE IN ITS TELEVISION RENTAL BUSINESS QUOTE IT SAID GRANADA IS OFFERING THIRTEEN NEW GRANADA SHARES FOR EVERY TEN LWT SHARES PLUS A SMALL AMOUNT OF CASH VALUING THE TARGET AT SEVEN HUNDRED SEVENTY SIX MILLION POUNDS ONE POINT ONE THREE BILLION DOLLARS PACE AMERICAN GROUP INCORPORATED SAID IT NOTIFIED TWO TOP EXECUTIVES IT INTENDS TO DISMISS THEM BECAUSE AN INTERNAL INVESTIGATION FOUND EVIDENCE OF QUOTE SELF DEALING QUOTE AND QUOTE UNDISCLOSED FINANCIAL RELATIONSHIPS QUOTE THE EXECUTIVES ARE DON H. PACE COFOUNDER PRESIDENT AND CHIEF EXECUTIVE OFFICER AND GREG S. KAPLAN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR. PACE BELIEVES THAT HE IS BEING TREATED UNFAIRLY BY THE COMPANY AND THAT THE ACTIONS OF THE COMPANY ARE BEING MOTIVATED BY BAD FAITH AND ARE NOT IN THE BEST INTERESTS OF SHAREHOLDERS SAID HIS LAWYER PAUL FISCHER OF WASHINGTON D. C. MR. KAPLAN'S LAWYER WILLIAM G. WALKER SAID MR. KAPLAN IS LEGALLY AND ETHICALLY INNOCENT OF ANY WRONGDOING ALL OF HIS ACTIVITIES WERE KNOWN TO HIS CORPORATE SUPERIORS AT ALL TIMES BOTH EXECUTIVES HAVE BEEN ON LEAVE FROM THE SURETY BOND CONCERN SINCE EARLY THIS MONTH PENDING THE FINDINGS OF AN INTERNAL INVESTIGATION BY A BOARD COMMITTEE UNDER TERMS OF THE EXECUTIVES' EMPLOYMENT CONTRACTS THEY HAVE TWENTY ONE DAYS TO RESPOND TO THE NOTICES BEFORE THEY CAN BE DISMISSED THE COMPANY SAID IN A STATEMENT THE ALLEGED ACTS INCLUDE MR. PACE'S UNDISCLOSED RECEIPT OF PORTIONS OF COMMISSIONS PAID BY A SUBSIDIARY OF THE COMPANY TO ONE OF ITS AGENTS AND THE UNDISCLOSED RECEIPT BY BOTH EXECUTIVES OF FEES PAID BY CONTRACTORS WHO WERE BONDED BY A COMPANY SUBSIDIARY THROUGH A FORMER AGENT THE STATEMENT SAID COMPANY OFFICIALS INCLUDING ITS GENERAL COUNSEL DANDO B. CELLINI DIDN'T RETURN CALLS SEEKING CLARIFICATION IN ITS STATEMENT THE COMPANY SAID THE INVESTIGATION CONTINUES BUOYED BY THE PROSPECT OF NEAR TERM GROWTH MANUFACTURERS AND CONSTRUCTION FIRMS CONTINUE TO BE OPTIMISTIC ABOUT NEW ORDERS EMPLOYMENT AND PRICES ACCORDING TO TWO SURVEYS BY DUN AND BRADSTREET CORPORATION THE MONTHLY SURVEY OF ONE THOUSAND MANUFACTURERS NATIONWIDE SHOWED AN INCREASE IN EXPECTATIONS ABOUT THE COMING THREE MONTHS DESPITE A SHARP DECLINE IN PRODUCTION AND NEW ORDERS REPORTED IN THE PAST THREE MONTHS WHICH WERE LARGELY THE RESULT OF HARSH WEATHER CONDITIONS DOUGLAS P. HANDLER MANAGER OF ECONOMIC ANALYSIS FOR THE BUSINESS INFORMATION SERVICES COMPANY SPECULATED THAT MANUFACTURERS COULD OVERPRODUCE IN THE FIRST PART OF THE YEAR AND BE FORCED TO MAKE CYCLICAL CUTBACKS IN PRODUCTION D. AND B'S INDUSTRIAL SENTIMENT INDEX WAS UP FOR THE SECOND CONSECUTIVE MONTH RISING TO TWENTY ONE FROM TWENTY THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDING COMPANIES EXPECTING INCREASES IN THE COMING THREE MONTHS IN ORDERS PRODUCTION AND OTHER FACETS OF MANUFACTURING MINUS THE PERCENTAGE EXPECTING DECREASES D. AND B'S SURVEY OF TWO HUNDRED CONSTRUCTION FIRMS INDICATED STRONG OPTIMISM FOR NEAR TERM INCREASES IN EMPLOYMENT NEW ORDERS AND PRICES IN THE INDUSTRY THE INDEX MEASURING THREE MONTH EXPECTATIONS FOR ORDERS SHOT UP TO FORTY THREE IN JANUARY FROM EIGHTEEN IN DECEMBER THE INDEX FOR EMPLOYMENT ROSE TO THIRTY THREE FROM FIFTEEN AND THE INDEX FOR PRICES ROSE TO TWENTY THREE FROM NINETEEN HOWEVER ORDERS AND EMPLOYMENT IN JANUARY FELL SHARPLY FROM DECEMBER'S LEVELS WITH STABLE INTEREST RATES QUOTE THE RISE IN CONSTRUCTION ORDERS IS NOW DRIVEN BY IMPROVING ECONOMIC CONDITIONS THROUGHOUT THE COUNTRY RATHER THAN BY FALLING INTEREST RATES QUOTE MR. HANDLER SAID A SHAREHOLDER FILED A SUIT IN U. S. DISTRICT COURT HERE AGAINST LONGHORN STEAKS INCORPORATED FIVE OF ITS EXECUTIVES AND TWO MANAGING UNDERWRITERS ALLEGING THAT THE COMPANY MISREPRESENTED ITS GROWTH PROSPECTS AND INFLATED ITS STOCK THE SUIT WHICH SEEKS TO BE CONSIDERED AS A CLASS ACTION SEEKS UNSPECIFIED DAMAGES THE SUIT ALSO CONDEMNS TOP EXECUTIVES FOR SELLING OFF SOME OF THEIR HOLDINGS PRIOR TO THE COLLAPSE OF THE STOCK LAST SPRING WHICH RESULTED FROM LOWER THAN EXPECTED EARNINGS REPORTS THE ATLANTA COMPANY WHICH OPERATES FORTY SIX STEAK RESTAURANTS IN THE SOUTHEAST DENIED THE ALLEGATIONS RONALD SAN MARTIN CHIEF FINANCIAL OFFICER WOULDN'T COMMENT ON THE SUIT BUT HE SAID THAT THE COMPANY HAS QUOTE CURTAILED OUR GROWTH QUOTE THIS YEAR AND WON'T BUILD THE EIGHTEEN RESTAURANTS IT HAD PLANNED MR. SAN MARTIN SAID THAT THE CHAIN'S FOUNDERS GEORGE MCKERROW SENIOR AND GEORGE MCKERROW JUNIOR HELD FORTY PERCENT OF THE COMPANY'S SHARES UNTIL LAST MARCH AFTER WHICH POINT THEY SOLD OFF ABOUT HALF THEIR HOLDINGS MR. MCKERROW JUNIOR CHAIRMAN COULDN'T BE REACHED FOR COMMENT HEALTH MAINTENANCE ORGANIZATIONS AND OTHER INSURERS ARE STARTING TO PAY FOR A LOT OF QUOTE EXPERIMENTAL QUOTE TREATMENTS THAT THEY TRADITIONALLY HAVE BALKED AT COVERING THE NEW LENIENCY REFLECTS H. M. O.S' GROWING CONCERN ABOUT THEIR LEGAL VULNERABILITY IF AN AILING MEMBER IS DENIED CARE RECENTLY A CALIFORNIA H. M. O. HEALTH NET LOST A HIGH PROFILE COURT CASE INVOLVING A THIRTY SEVEN YEAR OLD WOMAN WHO COULDN'T GET THE HEALTH PLAN TO PROMPTLY APPROVE EXPERIMENTAL THERAPY FOR HER BREAST CANCER THE WOMAN PAID FOR THE TREATMENT ON HER OWN AND LATER DIED A JURY AWARDED HER ESTATE EIGHTY NINE MILLION DOLLARS IN DAMAGES THIS IS A HOT ISSUE AND IT JUST GOT HOTTER SAYS HYMAN KAHN A MEDICAL DIRECTOR AT U. S. HEALTHCARE INCORPORATED BLUE BELL PENNSYLVANIA LIKE MOST H. M. O.S AND INSURERS U. S. HEALTHCARE SAYS IN ITS CONTRACTS WITH EMPLOYERS AND MEMBERS THAT IT WON'T PAY FOR EXPERIMENTAL CARE BUT WE AREN'T GOING TO HIDE BEHIND THAT DOCTOR KAHN SAYS IF THERE'S A MEDICAL REQUEST TO DO SOMETHING WE WILL ACT ON ITS MERITS MORE OFTEN THAN NOT WE COVER IT MANY H. M. O.S ARE SETTING UP PANELS OF INDEPENDENT RESEARCHERS TO HELP THEM DECIDE WHEN EXPERIMENTAL CARE IS APPROPRIATE THAT'S AN APPROACH TAKEN BY U. S. HEALTHCARE WHICH SAYS THAT FOR SOME TYPES OF CANCER IT NOW ENDS UP APPROVING NINETY PERCENT OF THE REQUESTS FOR COVERAGE OF EXPERIMENTAL CARE THESE PIONEERING TREATMENTS SOMETIMES CARRY STEEP PRICE TAGS EXPERIMENTAL DRUGS TO TREAT CANCER OR AIDS CAN COST THREE THOUSAND DOLLARS OR MORE FOR PROLONGED TREATMENT SPENDING FOR LASER SURGERY TO TREAT LUNG DISEASE CAN TOP TWENTY THOUSAND DOLLARS AND NEW TYPES OF ORGAN TRANSPLANTS OFTEN RUN MORE THAN ONE HUNDRED THOUSAND DOLLARS MANY SERIOUSLY ILL PATIENTS WANT SUCH PIONEERING TREATMENT AND ARE WILLING TO SUE TO GET COVERAGE RICHARD CARTER AN ALEXANDRIA VIRGINIA LAWYER SAYS THAT IN THE PAST FOUR YEARS HE HAS HANDLED THREE HUNDRED CASES INVOLVING PATIENTS' EFFORTS TO GET EXPERIMENTAL CARE PAID FOR IN MOST CASES MR. CARTER SAYS RECALCITRANT H. M. O.S AND INSURERS BACKED DOWN QUICKLY AND AGREED TO PAY I'D SAY THAT LESS THAN TWENTY FIVE PERCENT OF CASES HAVE GONE TO COURT AND ONLY EIGHT HAVE GONE THROUGH A FULL TRIAL HE SAYS THIS WILLINGNESS TO BEND AFFECTS H. M. O.S' EFFORTS TO HOLD DOWN COSTS ON THEIR MOST COMPLEX CASES QUOTE IN A VACUUM WE'D LIKE TRUE EVIDENCE THAT SOMETHING IMPROVES PEOPLE'S HEALTH BEFORE APPROVING IT QUOTE SAYS SIMEON RUBENSTEIN HEAD OF THE NEW TECHNOLOGY COMMITTEE AT GROUP HEALTH OF PUGET SOUND BUT THE REALITY OF POLITICS AND SOCIAL PRESSURE IS THAT THINGS AREN'T ALWAYS THAT SIMPLE SOME OF THE KEENEST DEBATES INVOLVE HIGH DOSE CHEMOTHERAPY FOLLOWED BY A BONE MARROW TRANSPLANT THAT HELPS REVIVE A CANCER PATIENT'S WHITE BLOOD CELL PRODUCTION SUCH TREATMENTS CAN COST AS MUCH AS TWO HUNDRED THOUSAND DOLLARS GROUP HEALTH DID AN ABOUT FACE ON ITS POLICY FOR BONE MARROW TRANSPLANTS LAST SUMMER AFTER A MEMBER THREATENED TO SUE OVER THE SEATTLE H. M. O.'S PLANS TO DENY COVERAGE DOCTOR RUBENSTEIN SAYS GROUP HEALTH CHOSE TO COVER SUCH TREATMENT FOR BREAST CANCER BECAUSE NEW DATA FROM DUKE UNIVERSITY SUGGESTED THAT BONE MARROW TRANSPLANTS WORKED BETTER THAN EXPECTED HE ADDS THOUGH THAT THE THREAT OF A SUIT SPURRED HIS H. M. O. TO RE EXAMINE THE ISSUE AS PRESSURE ON INSURERS MOUNTS PATIENTS AND THEIR FAMILIES VOICE RELIEF MARK BURKDOLL A CLEARLAKE CALIFORNIA HOSPITAL TECHNICIAN SAYS HE WAS BRACED FOR A MAJOR BATTLE LAST SUMMER WITH HIS H. M. O. HEALTH PLAN OF THE REDWOODS MR. BURKDOLL'S SIX YEAR OLD SON COLIN WAS BATTLING BRAIN CANCER AND DOCTORS HAD RECOMMENDED HIGH DOSE CHEMOTHERAPY FOLLOWED BY A BONE MARROW TRANSPLANT TO MR. BURKDOLL'S SURPRISE THE H. M. O. QUICKLY AGREED TO PAY FOR THE TREATMENT AFTER CONSULTING WITH AN INDEPENDENT DOCTOR AT CHILDREN'S HOSPITAL IN NEW YORK WHO SAID IT WAS MEDICALLY NECESSARY I FELT AS THOUGH HEALTH PLAN OF THE REDWOODS WAS GOING TO BAT FOR ME MR. BURKDOLL SAYS HIS SON UNDERWENT TREATMENT IN OCTOBER AND APPEARS TO BE DOING WELL MOST OF THE LARGEST H. M. O.S AND INSURERS NOW REGULARLY USE PANELS OF INDEPENDENT MEDICAL EXPERTS TO HELP DECIDE WHETHER TO AUTHORIZE COSTLY EXPERIMENTAL CARE AETNA LIFE AND CASUALTY COMPANY FOR EXAMPLE REFERS CANCER CASES TO A PANEL OF ONE HUNDRED THIRTY DOCTORS AT INSTITUTIONS SUCH AS STANFORD UNIVERSITY AND THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE PANEL IS OVERSEEN BY GRACE POWERS MONACO A PATIENT RIGHTS ACTIVIST IN WASHINGTON D. C. WHO PICKS THREE PANELISTS TO REVIEW MEDICAL RECORDS THESE DOCTORS THEN ISSUE OPINIONS ABOUT WHETHER EXPERIMENTAL TREATMENT IS WARRANTED THIS MAKES IT A MUCH MORE COOPERATIVE RELATIONSHIP WITH PATIENTS SAYS WILLIAM MCGIVNEY DIRECTOR OF TECHNOLOGY ASSESSMENT AT AETNA HE SAYS THE OUTSIDE PANEL APPROVES ABOUT SIXTY FIVE PERCENT OF THE EXPERIMENTAL TREATMENTS SENT ITS WAY AT U. S. HEALTHCARE BREAST CANCER PATIENTS GENERALLY ARE OFFERED ACCESS TO CONTROLLED RESEARCH TRIALS WHERE THEY HAVE AT LEAST A FIFTY PERCENT CHANCE OF GETTING AN EXPERIMENTAL TREATMENT IN SOME CASES THE H. M. O. LETS PATIENTS UNDERGO BONE MARROW TRANSPLANTS RIGHT AWAY RATHER THAN TAKE A CHANCE ON THE RESEARCH TRIALS THERE'S A LARGE GRAY AREA BETWEEN STANDARD AND EXPERIMENTAL CARE SAYS HARRIS BERMAN CHIEF EXECUTIVE OFFICER OF TUFTS ASSOCIATED HEALTH PLANS WALTHAM MASSACHUSETTS HIS H. M. O. HAS REGULARLY PAID FOR EXPERIMENTAL SERVICES THAT IT THINKS HAVE PROMISE INCLUDING FOURTEEN OF FIFTEEN REQUESTS LAST YEAR FOR BONE MARROW TRANSPLANTS IN BREAST CANCER PATIENTS THE FEDERAL GOVERNMENT AT ONE TIME PAID FOR MOST EXPERIMENTAL CARE AT ESTABLISHED MEDICAL CENTERS BUT IN THE EARLY NINETEEN EIGHTIES FEDERAL FUNDING DRIED UP WHILE COSTS FOR SUCH TREATMENT SOARED AS A RESULT MS. MONACO SAYS INSURERS BEGAN IN THE MID NINETEEN EIGHTIES TO DENY MORE CARE UNDER THE EXPERIMENTAL TREATMENT EXCLUSION BUT OVER THE PAST TWO YEARS SHE SAYS MORE AND MORE INSURERS ARE SAYING IF THE FEDS AREN'T GOING TO PAY FOR CLINICAL TRIALS MAYBE WE SHOULD SOME H. M. O.S IN FACT ARE TRYING TO DEVELOP NEW CONTRACT LANGUAGE THAT WILL DO AWAY WITH THE DISPUTE ABOUT WHAT IS EXPERIMENTAL CARE AND WHAT ISN'T A MAJOR COLORADO H. M. O. QUAL MED INCORPORATED HAS STARTED LETTING EMPLOYERS CHOOSE BETWEEN A PLAN THAT COVERS A WIDE RANGE OF CONTROVERSIAL NEW TREATMENTS SUCH AS LUNG TRANSPLANTS FOR CANCER PATIENTS AND ONE THAT SPECIFICALLY EXCLUDES THEM THE PRICE DIFFERENCE AMOUNTS TO ABOUT ONE POINT FIVE PERCENT OR TWO DOLLARS AND SIXTY CENTS PER MEMBER PER MONTH SAYS MALIK HASAN QUAL MED'S CHIEF EXECUTIVE OFFICER DOCTOR HASAN SAYS HE THINKS THE PREMIUM PLAN WILL DO WELL WITH LARGE CORPORATIONS AND THEIR HEALTH PLANS MAJOR EMPLOYERS DON'T WANT THE STRIFE THAT OFTEN COMES WITH DENYING INSURANCE COVERAGE TO A DESPERATELY ILL EMPLOYEE HE OBSERVES QUAL MED ALSO WOULD FIND A MORE EXPLICIT COVERAGE SYSTEM EASIER TO MANAGE DOCTOR HASAN SAYS HIS INTEREST IS MORE THAN ACADEMIC QUAL MED LAST MONTH ACQUIRED HEALTH NET THE CALIFORNIA H. M. O. THAT LOST THE EIGHTY NINE MILLION DOLLARS DAMAGE CASE RHONE POULENC RORER INCORPORATED AND IMMUNE RESPONSE CORPORATION PARTNERS IN A JOINT VENTURE TO DEVELOP A VACCINE AGAINST HUMAN IMMUNODEFICIENCY VIRUS INFECTION SAID THEY RESORTED TO ARBITRATION TO RESOLVE A DISPUTE ABOUT THE VENTURE'S MANAGEMENT RHONE POULENC RORER A UNIT OF THE FRENCH PHARMACEUTICAL COMPANY RHONE POULENC S. A. INITIATED THE ARBITRATION FEBRUARY EIGHTH WITH A FILING BEFORE THE AMERICAN ARBITRATION ASSOCIATION IN SAINT LOUIS IMMUNE RESPONSE BASED IN CARLSBAD CALIFORNIA FILED ITS OWN DEMAND FOR ARBITRATION THE NEXT DAY BOTH COMPANIES WERE QUICK TO SAY THEY DON'T EXPECT THE DISPUTE TO SLOW DEVELOPMENT OF THE AIDS VIRUS VACCINE DOCTOR DENNIS CARLO CHIEF OPERATING OFFICER OF IMMUNE RESPONSE SAID THE DISPUTE FOCUSES ON WHICH COMPANY WILL CONTROL THE CLINICAL TRIALS AND REGULATORY REVIEWS REQUIRED FOR THE DRUG'S EVENTUAL APPROVAL RHONE POULENC SPOKESMAN BOB PEARSON CONTENDS THAT UNDER A NINETEEN NINETY TWO AGREEMENT THE FIFTY TO FIFTY JOINT VENTURE IMMUNIZATION PRODUCTS LIMITED HAS CONTROL OF ALL ASPECTS OF THE DRUG'S DEVELOPMENT INCLUDING CLINICAL DEVELOPMENT REGULATORY AFFAIRS MARKETING AND MANUFACTURING AS OF THE END OF NINETEEN NINETY THREE BOTH COMPANIES HAD CONTRIBUTED HALF OF A TOTAL FIFTY MILLION DOLLARS TO THE JOINT VENTURE BOTH COMPANIES EMPHASIZED THEY REMAIN ENTHUSIASTIC ABOUT THE VACCINE'S PROSPECTS MADE BY IMMUNE RESPONSE IT TAKES THE WHOLE AIDS VIRUS KILLING IT WITH A CHEMICAL AND RADIATION AND PEELING OFF ITS OUTER PROTEIN COAT IT WAS DESIGNED BY POLIO VACCINE PIONEER JONAS SALK TO TREAT PEOPLE WHO ALREADY HAVE THE H. I. V. VIRUS FOR YEARS IT HAS BEEN FASHIONABLE TO DERIDE AMERICAN COMPETITIVENESS AMERICAN BUSINESSES HAVE BEEN RIDICULED FOR INVENTING SUCH PRODUCTS AS THE V. C. R. BUT FAILING TO CAPITALIZE ON THEM JAPANESE COMPANIES ON THE OTHER HAND HAVE BEEN ENDLESSLY PRAISED FOR DOMINATING MARKETS ONCE RULED BY AMERICAN COMPANIES SOME SAY THIS SUCCESS DERIVES FROM THE QUOTE JAPANESE MODEL QUOTE OF MANAGEMENT WHICH EMPHASIZED MARKET SHARE AT THE EXPENSE OF PROFITS EUROPEAN COMPANIES MEANWHILE ARE PRAISED FOR THEIR SUPPORT OF EXPENSIVE GOVERNMENT SOCIAL WELFARE PROGRAMS EVEN AS THEIR COMPETITIVE POSITION HAS DETERIORATED DESPITE GOVERNMENT SUBSIDIES BY CONTRAST AMERICAN FIRMS ARE ALLEGED TO LOSE MARKET SHARE BECAUSE THEY LACK LONG TERM VISION CRITICS CHARGE THAT THEY CONDUCT MASSIVE LAYOFFS SUCH AS A. T. AND T.'S FIFTEEN THOUSAND PERSON REDUCTION EARLIER THIS MONTH IN THE NAME OF SHORT TERM PROFITABILITY MANAGEMENT FASHIONS COME AND GO BUT ULTIMATELY BUSINESS RESULTS ARE MEASURED IN TERMS OF SALES AND PROFITS OVER THE LONG TERM THE TABLE NEARBY PRESENTS THE SCORECARDS OF AMERICAN JAPANESE AND EUROPEAN BUSINESSES OVER THE PAST SIX YEARS IN GLOBALLY COMPETITIVE INDUSTRIES THE DATA INCLUDE GLOBAL SALES INCLUDING THOSE OF FOREIGN SUBSIDIARIES THE RESULTS CLEARLY DEMONSTRATE THAT AMERICAN OWNERS MANAGERS AND WORKERS HAVE COMPETED AND WON TAKING HOME THIRTY SEVEN PERCENT OF SALES AND FORTY EIGHT PERCENT OF PROFITS IN GLOBAL MARKETS IN THIS SENSE THE U. S. HAS PRODUCED SOMETHING CLOSE TO THE TRADE VERSION OF OLYMPIC BASKETBALL'S DREAM TEAM AMERICAN INDUSTRY IS THE LEADER OR IS HIGHLY COMPETITIVE IN VIRTUALLY EVERY MAJOR GLOBAL INDUSTRY THIS SUCCESS RESULTS FROM WELL PLANNED AND WELL EXECUTED CAPITAL INVESTMENTS RESEARCH AND DEVELOPMENT ADVERTISING MARKETING PRODUCTION DESIGN AND PERSONNEL DEVELOPMENT OVER SEVERAL DECADES AND ALL OF THIS HAS COME ABOUT WITHOUT GOVERNMENT PLANNING IT IS THE TRIUMPH OF THE FREE MARKET IT IS CURIOUS THAT WHILE IT BECAME CONVENTIONAL WISDOM THAT U. S. BUSINESSES WERE FALLING BEHIND COMPETITIVELY U. S. ENTREPRENEURS WERE DEVELOPING THE WORLD'S LEADING COMPANIES IN MANY TECHNOLOGICALLY INTENSIVE INDUSTRIES U. S. COMPANIES ARE THE LEADERS IN DATA PROCESSING INCLUDING COMPUTERS AND SOFTWARE ELECTRONIC EQUIPMENT ELECTRICAL COMPONENTS AND HEALTH AND PERSONAL CARE INCLUDING PHARMACEUTICALS IN TECHNOLOGY TODAY THE TWO MOST POWERFUL GLOBAL COMPANIES ARE INTEL AND MICROSOFT BOTH AMERICAN AMERICA HAS BOEING AND MCDONNELL DOUGLAS WHO TOGETHER WOULD HAVE A VIRTUAL MONOPOLY OF THE COMMERCIAL AIRCRAFT MARKET IF NOT FOR AIRBUS'S EUROPEAN UNION SUBSIDIES THE PHARMACEUTICAL INDUSTRY IS AN ESPECIALLY INTERESTING CASE GIVEN THE CLINTON ADMINISTRATION'S HOSTILITY TOWARD IT THIS INDUSTRY ALONE ACCOUNTED FOR MORE THAN TEN PERCENT OF THE PROFITS EARNED BY ALL AMERICAN COMPANIES OVER THE PAST SIX YEARS YET THIS IS AN INDUSTRY THAT NECESSARILY MUST TAKE A VERY LONG TERM VIEW SINCE IT OFTEN TAKES A DECADE AND HUNDREDS OF MILLIONS OF DOLLARS TO DEVELOP A SINGLE NEW DRUG CLEARLY AMERICAN BUSINESSMEN ARE NOT THE MYOPIC SHORT TERMERS THEY ARE OFTEN ACCUSED OF BEING OF COURSE THE U. S. DOES NOT LEAD IN EVERY CATEGORY IN STEEL PRODUCTION FOR EXAMPLE U. S. COMPANIES EARNED A MINUSCULE TWO POINT THREE PERCENT OF TOTAL PROFITS WHILE JAPANESE COMPANIES CLAIMED MORE THAN FIFTY PERCENT U. S. COMPANIES ON THE OTHER HAND ARE FAR AHEAD IN THE BUSINESSES OF TOMORROW AEROSPACE ELECTRONIC EQUIPMENT DATA PROCESSING WHICH INCLUDES SOFTWARE SALES AND HEALTH CARE WHAT U. S. COMPANIES IN FACT HAVE DONE IS LEAPFROG THEIR RIVALS GIVING UP MARKET SHARE IN LOW PROFIT INDUSTRIES WHILE MOVING AHEAD IN HIGH PROFIT AREAS AND HIGH PROFIT INDUSTRIES ARE NOT NECESSARILY ONLY IN THE TECHNOLOGY AREA FOOD BEVERAGES TOBACCO AND PERSONAL CARE PRODUCTS HAVE BEEN AMONG THE MOST PROFITABLE BUSINESSES IN RECENT YEARS THESE ARE AREAS WHERE JAPANESE COMPANIES ARE PARTICULARLY WEAK AND THE EUROPEANS HAVE BEEN LOSING GROUND NOTE ALSO THAT THE MASS MARKET EUROPEAN PRODUCTS OF VOLKSWAGEN PEUGEOT AND FIAT ARE VIRTUALLY NONEXISTENT IN THE U. S. MARKET WITH A COMBINED ONE PERCENT MARKET SHARE IN CONTRAST G. M. AND FORD ARE STRONG COMPETITORS IN EUROPE WITH A COMBINED TWENTY FOUR PERCENT MARKET SHARE THERE MANY OF THOSE WHO FAVOR THE JAPANESE OR EUROPEAN MODELS ARE REALLY LESS CONCERNED WITH FINDING BETTER AND MORE EFFICIENT METHODS OF MANAGEMENT THAN WITH LOOKING FOR A WAY TO RATIONALIZE THEIR BASIC HOSTILITY TO CAPITALISM THEY IMPLICITLY BELIEVE THAT PROFITS ARE BAD OR AT LEAST UNDESERVED AND THAT THEY SOMEHOW COME AT THE EXPENSE OF WORKERS AND CONSUMERS THEY ALSO VIEW THE NEED FOR PROFITS TO BE AN INSURMOUNTABLE BARRIER TO THE TRANSFORMATION OF CORPORATIONS INTO INSTRUMENTS OF SOCIAL WELFARE THAT WOULD SUBORDINATE PROFITS TO HIGHER GOALS SUCH AS HIGH WAGES AND BENEFITS FOR WORKERS IN THE EUROPEAN STYLE HOWEVER THE MOST DISTURBING PROBLEM WITH THOSE WHO FAVOR ANOTHER MODEL IS THAT THEY DO NOT UNDERSTAND THAT PROFIT IS THE PRINCIPAL SOURCE OF CAPITAL TO FINANCE ECONOMIC GROWTH AND JOB CREATION IN THE PAST TEN YEARS THE U. S. HAS CREATED OVER EIGHTEEN MILLION NET NEW JOBS AND JAPAN HAS CREATED EIGHT MILLION WHILE EUROPE HAS CREATED JUST SIX POINT NINE MILLION DESPITE HAVING A POPULATION LARGER THAN THAT OF THE U. S. AND MORE THAN TWICE THAT OF JAPAN THE COLLAPSE OF JAPAN'S STOCK MARKET AND THE SLOWING OF ITS ECONOMY ARE ALREADY SLOWING JOB CREATION THERE WHILE EUROPE ACTUALLY IS EXPECTED TO HAVE A NET DECLINE IN TOTAL JOBS OVER THE NEXT TWO YEARS ACCORDING TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT MEANWHILE THE U. S. JOB MACHINE HAS CREATED MORE THAN ONE MILLION NEW JOBS IN JUST THE PAST YEAR WHAT THE RESULTS TELL US IS THAT AMERICAN MANAGERS ARE IN FACT THE BEST IN THE WORLD THEY HAVE INVESTED THEIR CAPITAL AND EXPANDED PRODUCTION NOT ONLY IN THE AREAS THAT HAVE PROVIDED THE BEST RATES OF RETURN BUT ALSO IN PRECISELY THOSE BUSINESSES THAT ARE BEST ABLE TO SATISFY THE CHANGING NEEDS OF THE CONSUMER IN THE PROCESS THEY HAVE LEFT MOST OF THEIR COMPETITORS BEHIND TRUE AMERICAN COMPANIES CONTINUE TO RESTRUCTURE AND MANY LARGE COMPANIES ARE STILL SHEDDING JOBS BUT OTHERS ARE CREATING JOBS BY DEVELOPING NEW PRODUCTS METHODS AND MARKETING TECHNIQUES IT IS ALL PART OF SCHUMPETER'S PROCESS OF CREATIVE DESTRUCTION AS COMPANIES IN MATURE INDUSTRIES WITH DECLINING PROFITS DOWNSIZE AND DYNAMIC NEW COMPANIES WITH HIGH PROFIT POTENTIAL GROW TO REPLACE THEM IN THE END IT IS PROFITABILITY THAT FUELS THIS PROCESS MR. STRICKBERGER IS A PARTNER WITH AN INVESTMENT MANAGEMENT FIRM IN NEW YORK HE IS ALSO AN ADJUNCT FELLOW WITH THE ALEXIS DE TOCQUEVILLE INSTITUTION IN ARLINGTON VIRGINIA EXECUTIVE VICE PRESIDENT LARRY HOLLEN FORTY EIGHT YEARS OLD WAS NAMED TO SUCCEED ROBERT SANBORN AS PRESIDENT AND CHIEF OPERATING OFFICER MR. SANBORN BECOMES VICE CHAIRMAN OF THIS SPECIALTY INSURANCE COMPANY'S BOARD UNDER A PLAN OF SUCCESSION BEGUN IN LATE NINETEEN NINETY TWO WHEN MR. HOLLEN WAS GIVEN ADDITIONAL OPERATING RESPONSIBILITIES J. W. P. INCORPORATED AS EXPECTED SAID IT FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE AND SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER PLANS TO RESIGN THE BELEAGURED MECHANICAL AND ELECTRICAL CONSTRUCTION CONTRACTING COMPANY SAID THE VOLUNTARY FILING CONVERTS AN INVOLUNTARY PETITION FILED IN DECEMBER BY THREE HOLDERS OF J. W. P.'S SEVEN AND THREE QUARTERS PERCENT CONVERTIBLE SUBORDINATED DEBENTURES J. W. P. SAID THE OPERATIONS OF ITS UNITS WILL BE UNAFFECTED BY THE BANKRUPTCY PROCEEDING WHICH APPLIES TO THE HOLDING COMPANY J. W. P. ALSO SAID IT HAD REACHED AN AGREEMENT FOR THIRTY FIVE MILLION DOLLARS OF DEBTOR IN POSSESSION FINANCING WITH BELMONT CAPITAL PARTNERS TWO L. P. SUBJECT TO COURT APPROVAL AND CERTAIN CONDITIONS BELMONT'S GENERAL PARTNER IS AN AFFILIATE OF FIDELITY INVESTMENTS UNDER J. W. P.'S REORGANIZATION PLAN CREDITORS HOLDING ABOUT SIX HUNDRED MILLION DOLLARS OF CLAIMS AND DEBT WOULD RECEIVE ABOUT ONE HUNDRED TEN MILLION DOLLARS OF RECOURSE DEBT FIFTY MILLION DOLLARS OF NONRECOURSE DEBT AND ONE HUNDRED PERCENT OF THE COMPANY'S EQUITY HOLDERS OF SUBORDINATED DEBT COMMON AND PREFERRED STOCK AND WARRANTS WOULDN'T HAVE ANY STAKE IN THE RESTRUCTURED COMPANY SEPARATELY EDWARD KOSNIK SAID HE WILL RESIGN AS CHAIRMAN AND CHIEF EXECUTIVE OF J. W. P. QUOTE TO PURSUE OTHER PERSONAL AND BUSINESS ACTIVITIES QUOTE IN A STATEMENT MR. KOSNIK SAID THE FILING OF THE PREARRANGED CHAPTER ELEVEN WHICH HAS THE SUPPORT OF J. W. P.'S PRINCIPAL CREDITORS IS AN APPROPRIATE TIME TO BRING ON BOARD A NEW CHIEF EXECUTIVE TO LEAD A REORGANIZED J. W. P. INTO THE FUTURE MR. KOSNIK WILL CONTINUE AS CHIEF EXECUTIVE FOR A TRANSITION PERIOD J. W. P. SAID A SUCCESSOR HAS NOT BEEN NAMED SEPARATELY J. W. P. SAID JEFFREY M. LEVY SENIOR VICE PRESIDENT WAS NAMED ACTING CHIEF OPERATING OFFICER IN THE FIRST COMPLAINTS FILED UNDER THE LABOR SIDE AGREEMENT OF THE NORTH AMERICAN FREE TRADE AGREEMENT TWO UNIONS ACCUSED GENERAL ELECTRIC COMPANY AND HONEYWELL INCORPORATED OF FIRING MEXICAN EMPLOYEES FOR ATTEMPTING TO ORGANIZE WORKERS INTO LABOR UNIONS THE SEPARATE SUBMISSIONS WERE FILED WITH THE U. S. LABOR DEPARTMENT'S NEW NATIONAL ADMINISTRATIVE OFFICE THE UNITED ELECTRICAL WORKERS FILED AGAINST G. E. AND THE TEAMSTERS FILED AGAINST HONEYWELL TOGETHER THE SUBMISSIONS COULD SET PRECEDENTS FOR HANDLING SUCH CASES UNDER THE COMPLICATED MECHANISM SET UP UNDER THE TRADE AGREEMENT TO RESOLVE CROSS BORDER LABOR DISPUTES THE UNIONS WHICH REPRESENT SOME OF THE COMPANIES' U. S. WORKERS TEAMED UP WITH THE AUTHENTIC LABOR FRONT AN INDEPENDENT LABOR FEDERATION IN MEXICO TO FILE AND PUBLICIZE THE CASES THE LABOR ORGANIZATIONS ARE ASKING FOR PUBLIC HEARINGS AND FOR THE FIRED WORKERS TO BE REINSTATED AND ALLOWED TO CHOOSE UNIONS WITHOUT REPRISALS G. E. A FAIRFIELD CONNECTICUT SERVICE AND MANUFACTURING COMPANY AND HONEYWELL A MINNEAPOLIS BASED MAKER OF CONTROLS BOTH DENIED THE ALLEGATIONS AND SAID THEY WOULD COOPERATE WITH ANY INQUIRIES FROM THE NATIONAL ADMINISTRATIVE OFFICE THE FIRST QUESTION FOR THE NATIONAL ADMINISTRATIVE OFFICE IS WHETHER THE OFFICE BORN JANUARY FIRST WHEN THE TRADE AGREEMENT TOOK EFFECT CAN RULE ON CASES THAT BEGAN LAST YEAR EVEN IF THE OFFICE ACCEPTS ONE OR BOTH FOR REVIEW THE CASES ARE LIKELY TO FACE A LONG BUREAUCRATIC ROAD AND AN UNCERTAIN OUTCOME STILL THEY SHOW THAT DESPITE HARSH CRITICISM OF NAFTA AND THE LABOR SIDE AGREEMENT LABOR UNIONS AREN'T HESITANT TO USE THE PROCEDURES THEY CREATE QUOTE WE'RE TESTING THE NAO AND SEEING IF IT WORKS QUOTE SAID BOB NICKLAS SPECIAL PROJECTS COORDINATOR FOR THE TEAMSTERS HE ACKNOWLEDGED THAT IT COULD TAKE SOME TIME HIS OWN COUNT OF THE VARIOUS STEPS IN THE PROCESS SHOWS THAT IT COULD TAKE MORE THAN TWO YEARS FOR THE CASES TO BE CONCLUDED UNDER THE NAFTA SIDE AGREEMENT ON LABOR ORGANIZATIONS ARE SET UP IN EACH PARTICIPATING COUNTRY TO HANDLE COMPLAINTS OVER ENFORCEMENT OF LABOR LAWS IN OTHER COUNTRIES THE NATIONAL ADMINISTRATIVE OFFICE HAS SIXTY DAYS TO DECIDE WHETHER TO ACCEPT THE SUBMISSIONS ULTIMATELY THE CASES COULD GO TO DISPUTE RESOLUTION PANELS THE TEAMSTERS ALLEGE THAT HONEYWELL FIRED ABOUT TWENTY PRODUCTION WORKERS AT ITS CHIHUAHUA PLANT IN NOVEMBER FOR SEEKING TO FORM AN INDEPENDENT AND FREE TRADE UNION AND THAT SINCE THEN THE COMPANY HAS INCREASED ELECTRONIC SURVEILLANCE OF ITS WORKERS A HONEYWELL SPOKESWOMAN SAID TWENTY TWO WORKERS WERE LAID OFF AS PART OF AN OVERALL PLAN TO DOWNSIZE THE FACTORY SHE ADDED THAT ONE EMPLOYEE WAS FIRED FOR PERFORMANCE ISSUES THE UNITED ELECTRICAL WORKERS MEANWHILE ALLEGE THAT GENERAL ELECTRIC FLAGRANTLY VIOLATED THE LABOR AND HUMAN RIGHTS OF ITS EMPLOYEES AT ITS MOTOR PLANT IN JUAREZ IN ADDITION TO ALLEGED FIRINGS FOR UNION ACTIVITIES THE UNION SAYS THAT WORKERS ARE NOW FORCED TO BOARD OR EXIT BUSES ON COMPANY PROPERTY SO THEY CAN'T RECEIVE UNION LITERATURE G. E. SAID IT HASN'T VIOLATED U. S. OR MEXICAN LABOR LAWS AND THAT THE ALLEGATIONS ARE PART OF A UNION ORGANIZING CAMPAIGN IN MEXICO AND THE UE'S CONTINUED ANTI NAFTA EFFORTS A SPOKESMAN SAID SIX OF ELEVEN FIRED WORKERS WERE OFFERED REINSTATEMENT AFTER THE COMPANY'S MANAGEMENT REVIEWED THE CASES BUT THAT THE WORKERS DECLINED HE SAID G. E. FOUND THAT LOCAL MANAGEMENT HAD QUOTE SUFFICIENT EVIDENCE QUOTE THAT FOUR OTHERS VIOLATED COMPANY RULES AND THAT ANOTHER CASE IS UNDER REVIEW ONE BY ONE THE FIRST GRADERS RECITE THE CHARACTERS THE TEACHER HAS DRAWN ON THE BOARD ONLY IT'S NOT THE A. B. C.S THAT THESE SIX AND SEVEN YEAR OLDS ARE RATTLING OFF BUT THE HIRAGANA CHARACTERS OF THE JAPANESE LANGUAGE THE STUDENTS IN THIS INNER CITY PUBLIC SCHOOL CLASSROOM HAVE NO JAPANESE HERITAGE IN FACT ALMOST ALL OF THEM ARE AFRICAN AMERICAN BUT ALL DAY LONG THEY HEAR ONLY JAPANESE FROM THEIR TEACHERS THEY RECITE THEIR MATH PROBLEMS IN JAPANESE THEIR LANGUAGE READERS OPEN FROM LEFT TO RIGHT AS IN JAPAN WHEN THE TEACHER ASKS IN JAPANESE QUOTE DO YOU UNDERSTAND QUOTE THE CHILDREN CHIRP QUOTE HAI QUOTE THIS IS DETROIT'S FOREIGN LANGUAGE IMMERSION AND CULTURAL STUDIES SCHOOL ONE OF ABOUT ONE HUNDRED FIFTY PUBLIC ELEMENTARY SCHOOLS NATIONWIDE WHOSE CURRICULA ARE TAUGHT IN A FOREIGN TONGUE THE SO CALLED IMMERSION PROGRAMS WHICH BEGIN IN KINDERGARTEN OR FIRST GRADE ARE OFFERED PRIMARILY IN FRENCH OR SPANISH THOUGH CANTONESE IS TAUGHT IN SAN FRANCISCO GERMAN IN MILWAUKEE AND HAWAIIAN IN HONOLULU THE PROGRAMS SHARPLY DEPART FROM TRADITIONAL LANGUAGE INSTRUCTION RATHER THAN DEVOTING JUST A SMALL PORTION OF THE SCHOOL DAY TO LANGUAGE INSTRUCTION SOME OR ALL SUBJECTS ARE TAUGHT IN THE SECOND TONGUE THE U. S. LONG A FOREIGN LANGUAGE LAGGARD CAN NO LONGER AFFORD TO BE SO TEACHING CHILDREN TO SPEAK OTHER LANGUAGES NOT ONLY ENHANCES COGNITIVE SKILLS AND CULTURAL APPRECIATION IT IS ALSO BECOMING AN ECONOMIC NECESSITY AS TRADE BARRIERS CRUMBLE AND BUSINESSES TURN TO FOREIGN MARKETS FOR EXPANSION YOU CAN BUY IN ANY LANGUAGE BUT TO SELL YOU NEED TO KNOW THE LANGUAGE OF YOUR CUSTOMER SAYS PAUL SIMON THE DEMOCRATIC SENATOR FROM ILLINOIS AND AUTHOR OF THE TONGUE TIED AMERICAN IMMERSION PROGRAMS AREN'T EASY TO OPERATE FINDING TEACHERS WHO ARE BILINGUAL IS A PROBLEM SO IS ATTRITION AS CHILDREN LEAVE THE PROGRAMS BECAUSE THEIR FAMILIES MOVE OR FOR OTHER REASONS THE ATTRITION RATE IN THE DETROIT IMMERSION SCHOOL WHICH ALSO OFFERS FRENCH AND SPANISH PROGRAMS IS ABOUT TEN PERCENT A YEAR THAT PARENTS OF ONE HUNDRED TWENTY SIX STUDENTS IN DETROIT HAVE CHOSEN TO ENROLL THEIR CHILDREN IN JAPANESE IS TESTAMENT TO THEIR FAITH THAT PROFICIENCY IN THE LANGUAGE WILL ENHANCE THEIR CHILDREN'S FUTURE JOB PROSPECTS I CHOSE THE IMMERSION PROGRAM FOR ECONOMIC REASONS I SEE THAT THE JAPANESE COMPANIES ARE BECOMING PART OF AMERICA SAYS MARGARET CLAY MOTHER OF FOURTH GRADER AARANISA WHO'S BEEN SPEAKING JAPANESE SINCE KINDERGARTEN FIFTH GRADER CLEOGHER DIXON WHOSE FATHER WORKS FOR CHRYSLER IS MORE BLUNT MY DAD TOLD ME THAT ONE DAY THE JAPANESE ARE GOING TO TAKE OVER EVERYTHING MOST LINGUISTS AGREE THAT FOREIGN LANGUAGES ARE EASIEST TO MASTER AT A YOUNG AGE WHEN CHILDREN HAVE NO FEAR OF THEIR DIFFICULTY AREN'T EMBARRASSED ABOUT PRONUNCIATION AND ACTUALLY CONSIDER THEM FUN WE LIKE SPEAKING JAPANESE AT HOME MY BROTHER HELPS ME SAYS GEOFFREY STEPHENS SEVEN YEARS OLD WHOSE THIRD GRADE BROTHER AND KINDERGARTEN SISTER ARE ALSO STUDYING JAPANESE IN DETROIT MOREOVER THE PROCESS OF LEARNING HOW TO LEARN A SECOND LANGUAGE BE IT SPANISH OR URDU CAN INSTILL IN YOUNG CHILDREN SPECIAL LEARNING SKILLS AS WELL AS SENSITIVITY TO OTHER CULTURES TEACHING A LANGUAGE IS TEACHING A CHILD TO PUT ON A PERSPECTIVE THE LENSES OF ANOTHER CULTURE SAYS PAUL GARCIA LANGUAGE DIRECTOR IN KANSAS CITY MISSOURI WHICH OFFERS FRENCH GERMAN AND SPANISH IMMERSION PROGRAMS INDEED AMERICA LAGS FAR BEHIND NOT ONLY ITS INDUSTRIALIZED COUNTERPARTS BUT ALSO THE LESS DEVELOPED WORLD IN THE ABILITY OF ITS STUDENTS TO SPEAK OTHER LANGUAGES INDIA AND FRANCE FOR EXAMPLE REQUIRE STUDENTS TO STUDY TWO FOREIGN LANGUAGES IN HIGH SCHOOL IN JAPAN STUDENTS BEGIN STUDYING ENGLISH IN SEVENTH GRADE BUT ONLY ABOUT ONE THIRD OF ALL AMERICAN SECONDARY SCHOOL STUDENTS TAKE A LANGUAGE WHILE A MERE TWO PERCENT TO THREE PERCENT OF CHILDREN STUDY AT THE PRIMARY SCHOOL LEVEL ENROLLMENT IN IMMERSION PROGRAMS IS GENERALLY VOLUNTARY AND NO APTITUDE TESTS ARE GIVEN PRIOR TO ADMISSION AND DESPITE THE INTENSITY OF THE LANGUAGE INSTRUCTION LINGUISTS AND TEACHERS BELIEVE SUCH PROGRAMS AREN'T ANY MORE STRESSFUL THAN TRADITIONAL SCHOOL FOR THE CHILDREN THE IMMERSION PROGRAM STUDENTS QUOTE ARE ALL IN THE SAME BOAT QUOTE SAYS NANCY RHODES ASSOCIATE DIRECTOR AT THE CENTER FOR APPLIED LINGUISTICS IN WASHINGTON D. C. THEY CAN ALWAYS COMMUNICATE WITH EACH OTHER IN THE BEGINNING THEY WON'T UNDERSTAND THE TEACHER BUT THE TEACHER WILL UNDERSTAND EVERYTHING THEY SAY STILL SOME PARENTS OFTEN HESITATE TO ENROLL THEIR CHILDREN IN SUCH PROGRAMS DO YOU KNOW WHAT IT'S LIKE TO TRY TO HELP YOUR KIDS WITH THEIR HOMEWORK WHEN YOU CAN'T READ DIRECTIONS OR EVEN LOOK A WORD UP ASKS SARI KAYE A LANGUAGE CURRICULUM DIRECTOR IN THE FAIRFAX COUNTY VIRGINIA SCHOOL DISTRICT WHICH OFFERS A JAPANESE PARTIAL IMMERSION PROGRAM PARENTS ALSO WORRY THAT THEIR CHILDREN'S ENGLISH SKILLS WILL BE NEGLECTED HOWEVER STANDARDIZED TESTS SHOW THAT CHILDREN TAUGHT IN ANOTHER LANGUAGE ACTUALLY DO AS WELL OR BETTER IN ENGLISH GRAMMAR READING COMPREHENSION AND VOCABULARY IMMERSION PROGRAMS FIRST SPROUTED IN QUEBEC IN THE MID NINETEEN SIXTIES WHEN A GROUP OF ENGLISH SPEAKING PARENTS REALIZED THEIR CHILDREN WERE FAR FROM BILINGUAL EVEN AFTER TAKING FRENCH ONE PERIOD A DAY OVER SEVERAL YEARS THEY INSTITUTED A PLAN IN WHICH KINDERGARTEN AND FIRST GRADE COURSES WOULD BE TAUGHT IN FRENCH WITH ENGLISH GRADUALLY INTRODUCED IN EACH OF THE NEXT SEVERAL GRADES BY FOURTH GRADE THE INSTRUCTION WOULD BE ABOUT FIFTY PERCENT ENGLISH THOSE STUDENTS DEVELOPED CONFIDENCE AND PROFICIENCY FAR GREATER THAN THEIR PEERS SAYS RICHARD TUCKER THEN A PROFESSOR AT MCGILL UNIVERSITY WHICH MONITORED THE STUDENTS' PROGRESS OVER SEVERAL YEARS CULVER CITY CALIFORNIA WAS THE FIRST U. S. SCHOOL DISTRICT TO ADOPT THE MODEL IN NINETEEN SEVENTY ONE FOR TEACHING SPANISH IN LANGUAGES WITH THE SAME ALPHABET AS ENGLISH SUCH AS FRENCH AND SPANISH CHILDREN ARE FAIRLY CONVERSANT BY FOURTH OR FIFTH GRADE IN JAPANESE IT TAKES MORE TIME IN DETROIT KAORI OHGATA A JAPANESE NATIVE SAYS OF HER CHARGES THEIR HEARING IS PRETTY GOOD BY FOURTH AND FIFTH GRADES AS FOR THEIR WRITING WE ARE STILL WORKING ON IT GRIPES FIFTH GRADER SIKA FOX QUOTE IT'S HARD PLAIN HARD QUOTE STILL THE STUDENTS WOULD BE ABLE TO HOLD A SIMPLE CONVERSATION WITH THEIR PEERS IN JAPAN SAYS MS. OHGATA EVEN WHEN FLUENT HOWEVER THE ELEMENTARY STUDENTS STILL WILL NOT SOUND LIKE NATIVES AS THEY MIGHT IF IMMERSED IN ANOTHER COUNTRY IN SOME CASES THEY DEVELOP A CLASSROOM DIALECT ALL MAKING THE SAME MISTAKES TEACHERS HAVE A HARD TIME GETTING THE STUDENTS TO USE THE FIRST PERSON SINCE THE TEACHER IS ALWAYS REFERRING TO STUDENTS AS YOU AT THE DETROIT IMMERSION SCHOOL INEALA CHAMBERS THE PRINCIPAL SPENDS MUCH OF HER TIME TRYING TO RECRUIT TEACHERS AND GET VISAS FOR MANY WHO ARE FOREIGN BORN THE TEACHERS AT THE SCHOOL WHICH ENROLLS ANOTHER FOUR HUNDRED CHILDREN IN FRENCH AND SPANISH IMMERSION PROGRAMS COULD FORM A MINI UNITED NATIONS HAILING FROM JAPAN CHINA BENIN LEBANON VENEZUELA MEXICO BELGIUM AND ARGENTINA OF THE JAPANESE TEACHERS TWO ARE JAPANESE NATIONALS ONE THE WIFE OF AN EXECUTIVE TRANSFERRED TO DETROIT ONE IS CHINESE AND SPENT SEVERAL YEARS IN JAPAN AND ONE IS AN AFRICAN AMERICAN WHO STUDIED IN JAPAN IN COLLEGE AND STAYED ON FOR A FEW YEARS PARENTS OF THOSE IN THE DETROIT PROGRAM HAVE FORMED A JAPANESE CLUB THAT TAKES THE CHILDREN ON EXCURSIONS TO ENHANCE THEIR AWARENESS OF THE CULTURE THEY HAVE TRAVELED TO A JAPANESE GARDEN A SATURDAY SCHOOL FOR CHILDREN OF JAPANESE EXECUTIVES STATIONED IN THE DETROIT AREA AND A JAPANESE RESTAURANT NOW THEY ARE WORKING ON REAL IMMERSION A TRIP TO JAPAN IN NINETEEN NINETY SIX IN HER JANUARY EIGHTEENTH LETTER RESPONDING TO MY DECEMBER TWENTY THIRD EDITORIAL PAGE ARTICLE QUOTE PRESIDENT'S COSTLY BUDGET BUSTER QUOTE NANCY ANN MIN OF THE OFFICE OF MANAGEMENT AND BUDGET DID NOT RESPOND TO THE CENTRAL THEME THAT BOTH THEORY AND HISTORY STRONGLY SUGGEST THAT ADOPTION OF A MASSIVE NEW ENTITLEMENT PROGRAM WILL LEAD TO A MASSIVE EXPANSION OF BUDGET DEFICITS MS. MIN DODGES THIS CRITICAL ISSUE BY FOCUSING HER RESPONSE ON SIDE ISSUES BUT EVEN THESE COMMENTS REFLECT A LEVEL OF INACCURACY THAT HAS COME TO CHARACTERIZE THE CLINTON ADMINISTRATION SHE ATTEMPTS TO DEFEND THE ADMINISTRATION'S BUDGET NUMBERS BY ASSERTING THAT A STUDY BY LEWIN VHI CAME TO THE SAME CONCLUSION YET THE LEWIN VHI STUDY WAS NOT DESIGNED TO ASCERTAIN THE RELIABILITY OF THOSE FIGURES INSTEAD THE REPORT MEASURED THE FINANCIAL IMPACT OF THE CLINTON PROPOSAL USING THE HEROIC ASSUMPTION THAT THE PLAN'S PRICE CONTROLS AND EXPENDITURE LIMITS WOULD OPERATE EXACTLY AS THE ADMINISTRATION PREDICTS AS I STATED IN MY ARTICLE HOWEVER THESE ASSUMPTIONS ARE GROSSLY OPTIMISTIC MS. MIN'S CLAIMS ARE SOMEWHAT LIKE DEBATING THE ABILITIES OF FLYING ELEPHANTS WITHOUT EVER CONFIRMING THE EXISTENCE OF SUCH CREATURES MS. MIN ALSO BERATES ME FOR NOT MENTIONING THE O. M. B. SCENARIOS THAT INDICATE THE HEALTH PLAN COULD PRODUCE EVEN MORE SAVINGS THAN ADVERTISED SHE SHOULD HAVE READ MORE CAREFULLY I SPECIFICALLY NOTED THAT THE NUMBERS I USED WERE PART OF AN EXERCISE TO LOOK AT BEST CASE AND WORST CASE NUMBERS MY ANALYSIS WHICH SHE NEGLECTED TO COUNTER IS THAT SO CALLED WORST CASE NUMBERS ARE THE REALISTIC ONES TO USE WHEN PREDICTING THE COST OF NEW ENTITLEMENT PROGRAMS HERE'S HOW ANDRZEJ KRZEMINSKI HEAD OF INTERNATIONAL BANKING AT POLAND'S BANK INICJATYW GOSPODARCZYCH OR BIG BANK IS WINNING THE HEARTS AND MINDS OF MERCHANTS FOR VISA INTERNATIONAL THE CREDIT CARD CONSORTIUM FIRST HE FINDS A SHOP THAT DOESN'T SPORT THE VISA LOGO IN ITS WINDOW THEN HE POSES AS A CUSTOMER PLACING ORDERS FOR A LARGE AMOUNT OF MERCHANDISE AS THE HAPPY SHOPKEEPER TOTES UP THE BILL MR. KRZEMINSKI PULLS OUT A VISA CARD ONLY TO BE TOLD IT ISN'T ACCEPTED HE STALKS ANGRILY OUT LEAVING THE DISAPPOINTED MERCHANT TO RESHELVE THE GOODS THEN HE SENDS IN OTHER BIG BANK COLLEAGUES TO PULL THE SAME RUSE OVER THE NEXT FEW DAYS IT'S A TOUGH STORE OWNER WHO CAN HOLD OUT LONG BEFORE SIGNING UP WITH VISA QUOTE IT'S QUITE EFFICIENT QUOTE OBSERVES MR. KRZEMINSKI THE SHOP MANAGERS GO A LITTLE CRAZY PEOPLE LIKE MR. KRZEMINSKI AND HIS ASSOCIATES AT BIG BANK HAVE GIVEN VISA A POWERFUL LEAD IN THE RAPIDLY GROWING POLISH CREDIT CARD MARKET POLAND IS VISA DOMINATED NOTES CIARA LINNANE EDITOR OF EAST EUROPEAN BANKER A NEWSLETTER WITH AMERICAN CONSUMERS LONG AWASH IN A SEA OF PLASTIC VISA AND ITS ARCHRIVALS MASTERCARD INTERNATIONAL AND AMERICAN EXPRESS COMPANY HAVE CARRIED TO FOREIGN SHORES THEIR FIERCE FIGHT TO SIGN UP AS MANY BANKS SHOPS AND CONSUMERS AS POSSIBLE MASTERCARD AND VISA THE TWO BIGGEST GLOBAL CARD BRANDS ARE CONSORTIUMS FOR THE WORLD'S FINANCIAL INSTITUTIONS AND DO MUCH OF THE LEGWORK TO SET UP AN INFRASTRUCTURE AND PERSUADE MERCHANTS TO ACCEPT THEIR CARDS MEMBER BANKS SUCH AS CITIBANK OR HONGKONG AND SHANGHAI BANK THEN ISSUE TO CONSUMERS THE CARDS THAT ALLOW THEM TO BUY ON CREDIT AMERICAN EXPRESS WHILE ISSUING CHARGE CARDS THAT MUST BE PAID OFF MONTHLY IS TRYING TO BUILD UP ITS OPTIMA CREDIT CARD MUCH IS AT STAKE LAST YEAR MORE THAN ONE TRILLION DOLLARS WAS SPENT VIA PLASTIC CARDS AND ESTIMATES CALL FOR THE GLOBAL