COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9307300207 930730 SMALL BUSINESS THE TAX PLAN'S VICTIM BY DAVID HALE BARRING A REVOLUTION IN THE CONFERENCE COMMITTEE BILL CLINTON APPEARS LIKELY TO END UP PRESENTING THE NATION WITH A FISCAL PROGRAM THAT CONTRADICTS MANY OF HIS 1992 PROMISES THERE WILL BE TAX INCREASES MORE RESTRICTIVE THAN THE ONES PROPOSED BY ROSS PEROT CONSTRAINTS ON DISCRETIONARY FEDERAL SPENDING CARRIED OVER FROM GEORGE BUSH'S 1990 BUDGET ACCORD AND LESS DEFICIT REDUCTION THAN ANYONE EXPECTS DUE TO A MISPLACED FOCUS ON INCOME REDISTRIBUTION AT THE EXPENSE OF ECONOMIC GROWTH THERE ARE SEVERAL PROBLEMS WITH THE PRESIDENT'S FISCAL PROGRAM FIRST HE IS PROPOSING THE LARGEST INCREASE IN MARGINAL INCOMETAX RATES SINCE THE 1930S THE ADMINISTRATION SUPPORTS A LARGE INCREASE IN RATES BECAUSE MANY OF THE PRESIDENT'S ADVISERS BELIEVE THAT THE 1980S TAX CUTS PRODUCED A WINDFALL FOR AFFLUENT AMERICANS AT THE EXPENSE OF OTHER SOCIAL CLASSES THE TAX BILL NOW MOVING THROUGH CONGRESS WILL CAUSE HIGHINCOME TAXPAYERS TO SEARCH FOR NEW WAYS TO REDUCE THEIR REPORTED INCOME IT WILL ALSO ENCOURAGE A POLITICAL BIDDING COMPETITION TO REVIVE TAX SHELTERS AND OTHER ALLOWANCES THAT DISTORT INVESTMENT DECISIONS SECONDLY AND IMPORTANTLY MUCH OF THE PRESIDENT'S INCOMETAX HIKE WILL FALL ON SMALL BUSINESS BECAUSE OF THE BIG REDUCTION THAT OCCURRED IN MARGINAL INCOMETAX RATES UNDER THE 1986 TAX REFORM ABOUT 16 MILLION OR 424 OF US BUSINESSES NOW FILE UNDER THE PERSONAL TAX CODE THAT RATE COMPARES TO 22 IN 1985 AND 155 IN 1970 SUBCHAPTER S INCOME NOW ACCOUNTS FOR MORE THAN 10 OF ALL INCOME ON RETURNS EXCEEDING 200000 AND 22 OF INCOME ON RETURNS EXCEEDING 1 MILLION THE NUMBER OF SOLE PROPRIETORSHIP TAX RETURNS IN THE US A FIGURE THAT INCLUDES THE SELFEMPLOYED ALSO HAS INCREASED TO 15 MILLION OR 14 OF THE LABOR FORCE IN 1991 FROM 58 MILLION OR 8 OF THE LABOR FORCE IN 1970 IF WE ADD SUBCHAPTER S RETURNS AND SOLE PROPRIETORSHIP RETURNS ABOUT 89 OF ALL TAX RETURNS WITH SIGNIFICANT BUSINESS INCOME ARE SUBJECT TO PERSONAL TAX RATES THE ADMINISTRATION CONTENDS THAT ITS TAX PROGRAM WILL RAISE THE TAX RATE ON ONLY ABOUT 300000 SMALL BUSINESSES BUT SINCE MORE THAN 60 OF ALL SUBCHAPTER S INCOME ACCRUES TO PEOPLE WITH INCOMES OF MORE THAN 200000 THE CLINTON TAX PROGRAM WILL STILL IMPOSE A LARGE FISCAL BURDEN ON BOTH SUCCESSFUL ENTREPRENEURS AND INVESTORS WILLING TO FINANCE SMALL FIRMS CONVERTING TO A CORPORATE TAX STATUS IN ORDER TO AVOID THE HIGHER RATES ON PERSONAL INCOME ALSO WOULD EXPOSE THESE ENTREPRENEURS TO THE PROBLEM OF DOUBLE TAXATION IF OWNERS OF SMALL FIRMS FILE A CORPORATE TAX RETURN THEY HAVE TO PAY A TAX ON THEIR INCOME TWICE FIRST AS A COMPANY AND THEN AS A BENEFICIARY OF A DIVIDEND OR CAPITAL GAIN AS A RESULT MANY SMALL BUSINESS OWNERS WILL BE RELUCTANT TO CONVERT BACK TO A CORPORATE TAX STATUS AND THE CLINTON PROGRAM WILL PRODUCE A DE FACTO TAX RATE FOR SMALL FIRMS THAT WILL OFTEN EXCEED THE TAX RATE ON LARGE CORPORATIONS THE LARGE INCREASE IN THE EFFECTIVE TAX RATE ON MANY SMALL FIRMS IS LIKELY TO RETARD THE ECONOMY'S RECOVERY MOMENTUM BECAUSE SMALL FIRMS ACCOUNT FOR PRACTICALLY ALL THE JOB CREATION IN THE US ECONOMY SINCE 1990 THE BIG FORTUNE 500 COMPANIES HAVE REDUCED THEIR TOTAL EMPLOYMENT TO 118 MILLION FROM 162 MILLION YET THE ECONOMY HAS PRODUCED 20 MILLION NEW JOBS BECAUSE OF EMPLOYMENT GROWTH AT SMALLER FIRMS ACCORDING TO A RECENT SURVEY BY DUN & BRADSTREET THIS TWOTIER HIRING PATTERN IS LIKELY TO CONTINUE DURING 1993 ITS RECENT SURVEY FOUND THAT COMPANIES WITH FEWER THAN 99 EMPLOYEES WILL ACCOUNT FOR 76 OF ALL PROJECTED JOB GROWTH IN THE US THIS YEAR COMPARED WITH A SMALL DECLINE AT COMPANIES EMPLOYING MORE THAN 25000 PEOPLE IN FACT THE CLINTON FISCAL PROGRAM WILL BE HITTING THE SMALL BUSINESS SECTOR AT PRECISELY THE MOMENT WHEN THERE WERE SIGNS THAT THE CREDIT CRUNCH WHICH STRANGLED SMALLBUSINESS CREATION DURING THE BUSH YEARS WAS EASING THE RECENT RECOVERY IN BANK PROFITABILITY IS ENCOURAGING MORE COMPETITION TO MAKE LOANS FEDERAL BANK EXAMINERS ARE TRYING TO RELAX THE REGULATORY GUIDELINES THAT HURT SMALL BUSINESS LENDING IN THE EARLY 1990S WALL STREET WILL PROBABLY UNDERWRITE SOME 50 BILLION TO 60 BILLION IN JUNK BONDS THIS YEAR COMPARED WITH ONLY 1 BILLION IN 1990 THE PROPOSED INCREASE IN FEDERAL MARGINAL INCOMETAX RATES WILL ALSO WORSEN THE CURRENT REGIONAL DIVERGENCIES IN ECONOMIC PERFORMANCE BY FALLING DISPROPORTIONATELY ON CALIFORNIA NEW ENGLAND AND NEW YORK THESE REGIONS ALREADY PAY AN ABOVE AVERAGE SHARE OF THE NATIONAL INCOME TAX BURDEN AS WELL AS HAVING HIGH LEVELS OF STATE INCOME TAX INDEED THE INCOMETAX HIKES ENACTED DURING 1990 DID NOT PRODUCE ANY REVENUE GROWTH DURING 1991 PARTLY BECAUSE OF THE ECONOMIC PROBLEMS OF THESE TRADITIONALLY MORE AFFLUENT STATES INSTEAD OF EXPANDING IN LINE WITH THE HIKE IN MARGINAL TAX RATES TO 31 FROM 28 TAX PAYMENTS FROM SOCALLED HIGHINCOME TAXPAYERS FELL BY 61 DURING 1991 COMPARED WITH A GAIN OF 1 FOR OTHER INCOME CLASSES SUBCHAPTER S INCOME EVEN DROPPED BY 105 FOR THE TOP 850000 TAXPAYERS COMPARED WITH A GAIN OF 62 FOR EVERYONE ELSE THE ADMINISTRATION WOULD LIKE TO OFFSET SOME OF THE INCOMETAX HIKES ON SMALL FIRMS BY OFFERING THEM NEW TAX ALLOWANCES FOR EQUIPMENT PURCHASES BUT MOST BUSINESS OWNERS WOULD RATHER HAVE A LOWER TAX RATE THAN A NEW TAX ALLOWANCE BECAUSE THE SENATE HAS SCALED BACK THE SIZE OF THE TAX ALLOWANCE FOR EQUIPMENT PURCHASES IT IS ALSO DOUBTFUL THAT THE ALLOWANCE WILL OFFSET THE INCOME LOSSES FROM THE HIGHER MARGINAL TAX RATES AT MANY FIRMS IN ADDITION TO THE MICROECONOMIC DISTORTIONS CAUSED BY HIGH TAX RATES THE CLINTON ADMINISTRATION IS WASTING A UNIQUE POLITICAL OPPORTUNITY TO ADDRESS THE COUNTRY'S MACROECONOMIC PROBLEMS OF LOW SAVINGS AND INVESTMENT INSTEAD THE PRESIDENT IS PURSUING TAX POLICIES THAT ARE LIKELY TO INHIBIT INVESTMENT DECISIONS AND EMPLOYMENT CREATION BY BOTH LARGE AND SMALL COMPANIES THE US HAS THE LOWEST PRIVATE SAVINGS RATE IN THE INDUSTRIAL WORLD PARTLY BECAUSE IT DEPENDS FAR MORE HEAVILY ON INCOME TAX THAN OTHER COUNTRIES WHILE THE CONSUMPTIONTAX SHARE OF GROSS DOMESTIC PRODUCT IS ONLY ABOUT 2 TO 3 COMPARED WITH 7 TO 8 IN OTHER INDUSTRIAL COUNTRIES THE ADMINISTRATION HAD ORIGINALLY HOPED TO NARROW THE CONSUMPTION TAX GAP WITH OTHER COUNTRIES BY INTRODUCING THE BTU TAX BUT THE BTU TAX CREATES SO MANY MICROECONOMIC DISTORTIONS FOR ENERGY CONSUMING INDUSTRIES THAT CONGRESS IS LIKELY TO REJECT IT IF THE BTU TAX IS ELIMINATED THE CLINTON PROGRAM WILL HAVE PRODUCED A LARGE INCREASE IN MARGINAL INCOMETAX RATES WITHOUT ACHIEVING ANY FUNDAMENTAL TAX RESTRUCTURING TO LESSEN THE RISK OF A FURTHER DECLINE IN AMERICA'S PRIVATE SAVINGS RATE THE ADMINISTRATION WILL ALSO HAVE GIVEN AWAY AN IMPORTANT FISCAL BARGAINING CHIP WITHOUT HAVING RESOLVED THE ISSUE OF HOW IT WILL PAY FOR HEALTH CARE THE US HAS A MUCH LOWER TAX AND GOVERNMENT EXPENDITURE SHARE OF GDP THAN OTHER INDUSTRIAL COUNTRIES BECAUSE NEARLY 60 OF HEALTH CARE SPENDING OCCURS IN THE PRIVATE SECTOR COMPARED WITH ONLY 20 TO 30 ELSEWHERE BUT WITH THE ADMINISTRATION COMMITTED TO A SIGNIFICANT EXPANSION OF GOVERNMENT'S HEALTH CARE ROLE THE GOVERNMENT SHARE OF GDP IS LIKELY TO RISE BY 4 TO 5 AND THE TAXATION GAP WITH OTHER INDUSTRIAL COUNTRIES WILL NARROW THE PROSPECT OF FINANCING HEALTH CARE ON TOP OF THIS YEAR'S LARGE INCREASE IN MARGINAL INCOMETAX RATES HAS TRIGGERED SUCH A SHARP DECLINE IN BUSINESS CONFIDENCE THAT FIRMS WILL PROBABLY CURTAIL HIRING THIS AUTUMN THE FINAL PROBLEM WITH THE ADMINISTRATION'S TAX PROGRAM IS THAT IT COULD RETARD COMPLETION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THE NORTH AMERICAN FREE TRADE AGREEMENT THESE ARE ESSENTIAL FOR CREATING A PROSPEROUS WORLD ECONOMY FOR US FIRMS LARGE AND SMALL IN 1992 GOV CLINTON PROMISED TO EXPAND FEDERAL SPENDING ON VOCATIONAL EDUCATION AND TRADE ADJUSTMENT PROGRAMS TO LESSEN PUBLIC OPPOSITION TO FREE TRADE BUT THOSE PROMISES ARE NOW COLLIDING WITH THE 1990 BUDGET ACCORD RESTRAINTS ON DISCRETIONARY SPENDING AS IT WILL BE IMPOSSIBLE TO SATISFY MR CLINTON'S CAMPAIGN PLEDGES WITHOUT FASTER GROWTH OF TAX RECEIPTS THE CONTRACTIONARY EFFECTS OF THE PRESIDENT'S FISCAL PROGRAM COULD INADVERTENTLY ENCOURAGE THE ALREADY STRONG PROTECTIONIST SENTIMENTS OF THE CONGRESS YET AS A RESULT OF THE COLLAPSE OF COMMUNISM AND THE SPREAD OF LIBERAL ECONOMIC IDEAS TO THE DEVELOPING COUNTRIES NEARLY FOUR BILLION PEOPLE ARE NOW POISED TO REENTER THE GLOBAL MARKETPLACE FOR GOODS AND CAPITAL AFTER SUFFERING SEVERAL DECADES OF STAGNATION UNDER MARXIST OR MERCANTILIST ECONOMIC POLICIES WITHOUT AMERICAN SUPPORT FOR FREE TRADE THIS INTEGRATION PROCESS WILL LOSE MOMENTUM AND THE RECOVERY NOW OCCURRING IN THE NEWLY MARKETORIENTED ECONOMIES WILL PETER OUT IN MEXICO FOR EXAMPLE THE ECONOMY HAS STALLED AND DEMAND FOR US EXPORTS IS DECLINING BECAUSE THE GOVERNMENT HAS BEEN FORCED TO RAISE INTEREST RATES IN ORDER TO STABILIZE THE PESO IN THE FACE OF DOUBTS ABOUT CONGRESS ENACTING NAFTA IN 1992 THE DEMOCRATS TRIED TO DISTINGUISH THEMSELVES FROM THE REPUBLICANS BY PROMOTING THE CONCEPT OF GROWTH WITH EQUITY NOT JUST GROWTH BUT BECAUSE OF THE LARGE STRUCTURAL DEFICIT INHERITED FROM THE 1980S IT WILL BE IMPOSSIBLE TO INCREASE PUBLIC SPENDING ON PROGRAMS DESIGNED TO PROMOTE SOCIAL EQUITY WITHOUT ALSO IMPROVING THE ECONOMY'S GROWTH PERFORMANCE IN PROPOSING A FISCAL POLICY THAT IS SO HOSTILE TO GROWTH THE CLINTON ADMINISTRATION WILL NOT MERELY DAMPEN THE RECOVERY NOW OCCURRING IN SMALL BUSINESS PROFITABILITY AND EMPLOYMENT IT WILL ALSO INCREASE ECONOMIC INSECURITY AMONG US COMPANIES AND HOUSEHOLDS AT PRECISELY THE MOMENT WHEN SUCH SENTIMENTS COULD UNDERMINE OUR ABILITY TO TAKE ADVANTAGE OF THE EXTRAORDINARY GLOBAL OPPORTUNITIES MADE POSSIBLE BY THE COLD WAR'S END MR HALE IS CHIEF ECONOMIST OF KEMPER FINANCIAL COMPANIES IN CHICAGO 9307300206 930730 BUSINESS BRIEF ITT SECONDQUARTER NET INCOME SURGED AS MOST BUSINESSES POSTED STRONG GAINS NEW YORK ITT CORP'S NET INCOME MORE THAN DOUBLED IN THE SECOND QUARTER AS SEVEN OF ITS EIGHT BUSINESS UNITS POSTED SIGNIFICANTLY IMPROVED OPERATING RESULTS SECONDQUARTER NET CLIMBED TO 267 MILLION OR 215 A SHARE FROM 106 MILLION OR 84 CENTS A SHARE A YEAR EARLIER SALES ROSE 3 TO 551 BILLION FROM 536 BILLION THE LATEST PERIOD INCLUDED TWO MAJOR AFTERTAX CHARGES 50 MILLION IN ESTIMATED LOSSES ON EARLY RETIREMENT OF DEBT AND 13 MILLION FOR THE COST OF PLANNED STAFF REDUCTIONS HOWEVER THEY WERE OFFSET BY A 63 MILLION AFTERTAX GAIN ON THE SALE OF ITS CONSUMER SMALLLOAN BUSINESS ONE ANALYST SAID THE RESULTS WERE BETTER THAN HE HAD EXPECTED AND INDICATED THAT COSTCUTTING AND RESTRUCTURING MOVES ARE PRODUCING RESULTS OPERATING EARNINGS AT ITT'S INSURANCE UNIT SOARED TO 187 MILLION FROM 41 MILLION A YEAR EARLIER DALE COMEY EXECUTIVE VICE PRESIDENT IN CHARGE OF THE FINANCIALSERVICES GROUP SAID HARTFORD'S EXPOSURE TO FLOOD DAMAGE IS LIMITED AND ALL WITHIN THE EXPECTED RANGE FOR THE YEAR AT ITT FINANCIAL A COMMERCIAL AND RESIDENTIAL LENDING UNIT OPERATING NET ROSE 15 TO 75 MILLION FROM 65 MILLION AMONG MANUFACTURING OPERATIONS THE DEFENSE AND ELECTRONICS DIVISION POSTED OPERATING NET OF 18 MILLION MORE THAN DOUBLING THE YEAREARLIER 7 MILLION MAINLY DUE TO COSTCUTTING AND RESTRUCTURING FRANKLY MARKETS ARE NOT HEALTHY SAID TRAVIS ENGEN EXECUTIVE VICE PRESIDENT IN CHARGE OF MANUFACTURED PRODUCTS NOTING THE SLUGGISH EUROPEAN ECONOMY AND CUTBACKS IN US MILITARY PROGRAMS HE SAID THE AUTOMOTIVE DIVISION'S 53 SALES GAIN IN THE QUARTER WAS DRIVEN SUBSTANTIALLY BY NEWPRODUCT PENETRATION HOTEL OPERATOR ITT SHERATON REVERSED LAST YEAR'S SECONDQUARTER LOSS OPERATING PROFIT TOTALED 21 MILLION COMPARED WITH THE YEAREARLIER LOSS OF 14 MILLION COMMENTING ON THE RESULTS ANALYST PHUA YOUNG OF LEHMAN BROTHERS SAID SEVEN OF THE EIGHT HAD BETTER RESULTS THAN I WAS LOOKING FOR EVERYTHING CLICKED LOOKING AHEAD MR YOUNG SAID THAT TYPICALLY THE THIRD QUARTER IS ITT'S SLOWEST BECAUSE EUROPE GOES ON VACATION IN AUGUST AND THE US AUTOMOTIVE INDUSTRY IS CHANGING OVER TO NEW MODELS HE ESTIMATES PERSHARE EARNINGS OF AROUND 170 UP FROM 80 CENTS A YEAR EARLIER BUT HE NOTED THAT 1992'S RESTRUCTURING CHARGES AND CATASTROPHE EXPENSES MAKE FOR VERY EASY YEAROVERYEAR COMPARISONS 9307300205 930730 SOME SAY PONDERING WASHINGTON ALSO CAN CAUSE VIOLENT REACTIONS BY RACHEL KESSLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS WE PREDICTED TOTAL VIOLENT CRIME IN THE DISTRICT OF COLUMBIA IS DOWN AND PRESIDENT CLINTON IS RIDING HIGH SO CLAIM THE BACKERS OF AN EXPERIMENTAL PROJECT TO CUT CRIME AND REDUCE GOVERNMENT GRIDLOCK IN THE NATION'S CAPITAL THEY CREDIT THE GROUP PRACTICE OF TRANSCENDENTAL MEDITATION BY 4000 EXPERTS FROM 65 COUNTRIES WHO HAVE BEEN IN WASHINGTON FOR 55 DAYS THE 5 MILLION PROJECT COSPONSORED BY THE INSTITUTE FOR SCIENCE TECHNOLOGY AND PUBLIC POLICY AND THE CITIZENS FOR A CRIMEFREE DC STARTED ON JUNE 7 BUT THE TM EXPERTS LEAVE TOMORROW THE INSTITUTE CLAIMS THAT DURING THE FIRST SEVEN WEEKS OF THE PROJECT VIOLENT CRIME IN WASHINGTON WAS DOWN 13 FROM A YEAR EARLIER BUT THE WASHINGTON POLICE DEPARTMENT SAYS IT CAN'T CONFIRM THAT FIGURE THERE WERE 27 MORE HOMICIDES DURING THE PERIOD COMPARED WITH A YEAR EARLIER THE GROUP SAYS BUT HOMICIDES ARE THE TOUGHEST NUT TO CRACK EXPLAINS CRAIG BERG A SPOKESMAN FOR THE INSTITUTE BECAUSE KILLERS ARE HIGHLY STRESSED INDIVIDUALS MR BERG IS HOPEFUL THOUGH THAT WITH INTENSIFIED TRANSCENDENTAL MEDITATION EFFORTS IN FUTURE PROJECTS THE NUMBER OF HOMICIDES WILL DECREASE GROUP MEDITATION THE INSTITUTE SAYS PRODUCES COLLECTIVE PURE CONSCIOUSNESS THAT REDUCES STRESS AND CRIME AND PROMOTES HARMONY IN SOCIETY BY CREATING AN ATMOSPHERE OF HARMONYA PROJECT SUMMARY SAYS THE TRANSCENDENTAL MEDITATORS ARE THEREBY PROMOTING THE SUCCESS OF THE PRESIDENT AND CONGRESS THE SUMMARY GOES ON TO SAY THAT SINCE THE PROJECT BEGAN PRESIDENT CLINTON'S CONFIDENCE HAS STEADILY GROWN AND HIS ADMINISTRATION HAS BEEN MET WITH INCREASING APPRECIATION AND SUCCESS BOTH AT HOME AND ABROAD IN POLLS ON MR CLINTON ACCORDING TO REPUBLICAN POLITICAL POLLSTER VINCE BREGLIO THERE IS A BIT OF AN UPTICK NATIONALLY BUT IF YOU LOOK AT APPROVAL RATINGS STATE BY STATE THE NUMBERS AREN'T GOOD AS FOR HARMONY BETWEEN MR CLINTON AND CONGRESS THAT IS CURRENTLY BEING TESTED IN THE DEBATE OVER A BUDGET BILL WHAT WILL HAPPEN AFTER THE MEDITATION EXPERTS LEAVE TOWN TOMORROW I FEAR THERE WILL BE A RETURN TO PREVIOUS LEVELS OF CRIME IN DCSAYS JOHN HAGELIN A HARVARDTRAINED QUANTUM PHYSICIST WHO IS DIRECTOR OF THE INSTITUTE WHICH IS PART OF MAHARISHI INTERNATIONAL UNIVERSITY IN FAIRFIELD IOWA I EXPECT TO SEE A RETURN TO GRIDLOCK IN CONGRESS 9307300204 930730 LAW LEGAL BEAT ANTITRUST WOES AREN'T PREDICTED FOR MERCK'S ALLIANCE WITH MEDCO BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL DON'T EXPECT MERCK & CO'S AGREEMENT TO MERGE WITH MEDCO CONTAINMENT SERVICES INC TO TRIGGER AGGRESSIVE SCRUTINY BY THE CLINTON ADMINISTRATION THE MAIN REASON ANTITRUST LAWYERS SAY IS THAT THE DEAL IS NEARLY CERTAIN TO INTENSIFY PRICE COMPETITION AMONG DRUG MAKERS THAT MAKES IT AN UNATTRACTIVE TARGET FOR ANTITRUST ENFORCERS PARTICULARLY AT A TIME WHEN THE ADMINISTRATION IS WORKING HARD TO LOWER OVERALL HEALTH COSTS THIS IS SO THE LAWYERS SAY DESPITE THE FACT THAT ADMINISTRATION OFFICIALS HAVE PROMISED TO STEP UP ANTITRUST ENFORCEMENT AFTER A PERIOD IN THE 1980S WHEN MANY DEMOCRATS MAINTAIN MERGERS RECEIVED SCANT SCRUTINY FROM REAGAN AND BUSH APPOINTEES I THINK THE GOVERNMENT WILL BE MORE AGGRESSIVE ON ANTITRUST BUT IT'S NOT GOING TO START IN HEALTH CARE SAID GARRET RASMUSSEN AN ANTITRUST LAWYER AT THE WASHINGTON LAW FIRM PATTON BOGGS & BLOW THE GOVERNMENT WOULDN'T WANT TO SEND A SIGNAL AT THIS TIME THAT EFFORTS WHICH COULD HAVE A SIGNIFICANT CHANCE OF LOWERING PRICES COULD BE SUBJECT TO STRICT ANTITRUST SCRUTINY THE FEDERAL TRADE COMMISSION AND THE JUSTICE DEPARTMENT MUST DECIDE WITHIN 30 DAYS WHETHER TO APPROVE THE DEAL OR SEEK ADDITIONAL INFORMATION ABOUT HOW IT WILL AFFECT COMPETITION IN THE DRUG INDUSTRY MERCK THE WORLD'S LARGEST DRUG COMPANY AND MEDCO THE NATION'S LARGEST MARKETER OF DISCOUNT PRESCRIPTION MEDICINES AGREED TO THE 6 BILLION MERGER WEDNESDAY GINA TALAMONA A JUSTICE DEPARTMENT SPOKESWOMAN SAID THE DEPARTMENT IS AWARE OF THE PROPOSED MERGER BUT DOESN'T YET KNOW WHETHER THE FTC OR THE JUSTICE DEPARTMENT WILL BE EXAMINING THE DEAL ANTITRUST LAWS ARE DESIGNED TO PROMOTE FREE COMPETITION AND TO PREVENT COMPANIES FROM TAKING ADVANTAGE OF SMALLER OR LESS POWERFUL FIRMS MORE BROADLY THE LAWS ARE SUPPOSED TO PROTECT CONSUMERS FROM UNFAIRLY HIGH PRICES WHAT MAKES ANTITRUST ENFORCEMENT PARTICULARLY UNLIKELY IN THIS CASE IS THAT IT IS A VERTICAL MERGER A COMBINATION BETWEEN A SUPPLIER AND A BUYER TYPICALLY SUCH DEALS OCCUR SO THAT THE MERGED COMPANY CAN BRING ITS PRODUCTS TO THE MARKET MORE EFFICIENTLY THEREBY REDUCING PRICES FOR CONSUMERS SINCE THE 1970S THE GOVERNMENT HAS REFRAINED ALMOST ENTIRELY FROM CHALLENGING VERTICAL MERGERS IT'S BEEN A DEAD LETTER NOW FOR 12 YEARS SAID ROBERT PITOFSKY A PROFESSOR AT GEORGETOWN UNIVERSITY LAW CENTER BY CONTRAST HORIZONTAL MERGERS WHICH UNITE COMPETITORS HAVE LED TO SOMEWHAT CLOSER SCRUTINY IN RECENT YEARS WHEN COMPETITORS MERGE THEY MAY CORNER ENOUGH OF THE MARKET TO SET PRICES WITHOUT REGARD FOR WHETHER OTHER COMPANIES CHARGE LESS THE ONLY WAY THE MERCKMEDCO MERGER COULD THREATEN COMPETITION ANTITRUST SPECIALISTS SAY IS IF THE COMBINED COMPANY SO DOMINATES THE MARKET THAT IT IS ABLE TO KEEP OTHER COMPANIES FROM GETTING THEIR DRUGS TO CONSUMERS BUT THE DRUG INDUSTRY IS PROBABLY FRAGMENTED ENOUGH TO PREVENT THAT NO DRUG COMPANY INCLUDING MERCK HAS MORE THAN 10 OF THE US PRESCRIPTION PHARMECEUTICAL BUSINESS AND MEDCO DISTRIBUTES TO 10 TO 20 OF PRESCRIPTIONDRUG USERS THE COMPANIES' COMPETITORS COULD BRING THEIR OWN ANTITRUST SUITS TO CHALLENGE THE DEAL BUT THERE WERE NO IMMEDIATE SIGNS OF THIS HENRY BLISSENBACH PRESIDENT OF DIVERSIFIED PHARMACEUTICAL SERVICES INC A UNIT OF UNITED HEALTHCARE CORP AND A MEDCO RIVAL HAS SAID THAT HE BELIEVES THE MERGER COULD RAISE ANTITRUST PROBLEMS BUT EVEN IF A SUIT IS FILED MANY LAWYERS ARE PREDICTING THAT THE EFFORT WILL FARE NO BETTER IN COURT THAN A GOVERNMENT CASE SOME OF THESE COMPETITORS OF MEDCO WILL MAKE A FUSS AND WILL COMPLAIN MR RASMUSSEN SAID BUT HE ADDED I THINK IT'S UNLIKELY THEY'LL FILE SUIT BECAUSE THEIR LIKELIHOOD OF SUCCEEDING IN THAT SUIT WOULD BE VERY SLIM AND THEY WOULDN'T WANT TO INCUR THE COST INDEED SOME LAWYERS SAID COMPETITORS MAY BE COMPLAINING BECAUSE THEY FEAR THE MERGER WOULD MAKE THE INDUSTRY EVEN MORE COMPETITIVE PUSHING DOWN PRICES AND REVENUES IN CASES INVOLVING VERTICAL MERGERS A LOT OF TIMES WHEN COMPETITORS ARE COMPLAINING WHAT THEY'RE COMPLAINING ABOUT IS THAT THE MERGED ENTITY WILL BE MORE EFFICIENT AND THEY'LL HAVE MORE TROUBLE COMPETING AGAINST IT SAID JEFF MILES AN ANTITRUST LAWYER AT THE LAW FIRM OBER KALER GRIMES & SHRIVER IN WASHINGTON AFTER A JURY DEADLOCKED A JUDGE DISMISSED INFLUENCEPEDDLING CHARGES AGAINST E ROBERT WALLACH THE LAST OF THE DEFENDANTS IN THE WEDTECH CORP SCANDAL THE FEDERAL JURY IN MANHATTAN HAD DELIBERATED THREE AND A HALF DAYS AND DEADLOCKED ON ALL THREE COUNTS DISTRICT JUDGE RICHARD OWEN ADMONISHED JURY MEMBERS TO TRY AGAIN BUT THEY WERE STILL STUCK YESTERDAY AFTERNOON THIS WAS THE SECOND TIME MR WALLACH HAD BEEN TRIED ON ALLEGATIONS THAT DURING THE 1980S HE ILLEGALLY TRADED ON HIS FRIENDSHIP WITH THENATTORNEY GENERAL EDWIN MEESE III TO HELP WEDTECH A BRONX NY CONTRACTOR WIN DEFENSE CONTRACTS AND TO EARN 1 MILLION HIMSELF IN 1989 A JURY CONVICTED HIM OF CONSPIRACY AND FRAUD BECAUSE THEY BELIEVED HE SENT WEDTECH PHONY BILLS TO CONCEAL WHAT HE REALLY WAS DOING FOR THE COMPANY BUT THE VERDICT WAS OVERTURNED ON THE GROUND THAT A GOVERNMENT WITNESS HAD LIED MR WALLACH WHO ARGUED HIS OWN CASE DURING THE RECENT RETRIAL HAS STEADFASTLY MAINTAINED HIS INNOCENCE THIS HAS BEEN GOING ON FOR SIX AND A HALF YEARS AND HOPEFULLY HE WON'T BE RETRIED SAID ROBERT J GIUFFRA JR AN ATTORNEY IN NEW YORK WHO HELPED MR WALLACH KATE COSENZA A SPOKESWOMAN FOR THE US ATTORNEY'S OFFICE IN MANHATTAN SAID THE GOVERNMENT HASN'T DECIDED WHETHER TO REPROSECUTE US VS WALLACH US DISTRICT COURT S 87CR985 RO JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9307300203 930730 ECONOMY CONFEREES SET LOAN CHANGES FOR STUDENTS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE AND SENATE NEGOTIATORS AGREED TO AIM TOWARD A 60 DIRECT GOVERNMENT LENDING PROGRAM FOR STUDENT LOANS BY THE END OF FIVE YEARS REPLACING MANY OF THE 8000 BANKS AND THRIFTS THAT NOW MAKE LOANS FOR EDUCATION THE COMPROMISE REACHED LATE LAST NIGHT AFTER FOUR DAYS OF MEETINGS RESOLVES THE DIFFERENCE BETWEEN THE HOUSE PLAN TO MAKE 100 OF THE LOANS DIRECTLY BY THE GOVERNMENT THROUGH EDUCATIONAL INSTITUTIONS AND THE SENATE PROPOSAL TO ALLOW BANKS TO CONTINUE TO MAKE 50 OF THE LOANS BY THE END OF FOUR YEARS PRESIDENT CLINTON HAD PROPOSED DIRECT GOVERNMENT LENDING AS A WAY TO SAVE 43 BILLION OVER FIVE YEARS AND TO MAKE THE CURRENT PUBLICPRIVATE PROGRAM MORE EFFICIENT THE CHANGE WOULD HAVE A HUGE IMPACT ON THE NATION'S COLLEGES AND TRADE SCHOOLS AS WELL AS THE 34 MILLION STUDENTS WHO CURRENTLY BORROW 15 BILLION ANNUALLY THE PROGRAM ALSO IS LIKELY TO IMPOSE NEW COSTS ON THE STUDENT LOAN MARKETING ASSOCIATION THOUGH THE FULL BURDEN ON SALLIE MAE AND ON THE FINANCIAL INSTITUTIONS THAT NOW MAKE THE LOANS WON'T BE WORKED OUT UNTIL TODAY THESE ARE THE BIGGEST CHANGES IN THE STUDENTLOAN PROGRAM IN THE 30YEAR HISTORY OF THE PROGRAM SAID TERRY HARTLE VICE PRESIDENT OF GOVERNMENT RELATIONS AT THE AMERICAN COUNCIL ON EDUCATION A COLLEGE GROUP THE STUDENT LENDING INDUSTRYBANKS SALLIE MAE AND THE 46 AGENCIES THAT GUARANTEE THE LOANS SPENT MILLIONS OF DOLLARS LOBBYING AGAINST THE CLINTON PROPOSAL WHICH WOULD END A LUCRATIVE BUSINESS FOR THEM IN THE END THE GROUPS LARGELY FAILED TO PRESERVE THE CURRENT PROGRAM THEY MANAGED TO SAVE LESS THAN HALF OF THEIR LENDING BUSINESS AND CAN EXPECT TO SEE THEIR COSTS INCREASE AND THEIR FEES AND SUBSIDIES SHRINK AS CONGRESS COMPLETES WORK ON THE DETAILS THE SENATE FOUGHT TO PRESERVE PART OF THE CURRENT PROGRAM THE GOAL WAS TO RUN GOVERNMENT LENDING AND THE CURRENT PUBLICPRIVATE PROGRAM SIDE BY SIDE FOR SEVERAL YEARS WHILE THE EDUCATION DEPARTMENT PHASED IN DIRECT LENDING UNDER THE COMPROMISE 5 OF THE LOANS WOULD BE MADE DIRECTLY IN THE 199495 SCHOOL YEAR FOLLOWED BY 40 THE NEXT YEAR AT LEAST 50 IN THE THIRD AND FOURTH YEARS AND 60 OR MORE IN THE FIFTH YEAR STUDENTS WOULD BENEFIT IN TWO WAYS THE INTEREST RATES THEY PAY ON LOANS WOULD FALL AND THEY WOULD HAVE A BROAD RANGE OF REPAYMENT OPTIONS GRADUATES NOW MUST REPAY LOANS IN EQUAL MONTHLY INSTALLMENTS OVER 10 YEARS UNDER THE NEW PLAN WHICH IS MOVING THROUGH CONGRESS AS PART OF THE BUDGET PACKAGE STUDENTS WOULD BE ABLE TO STRETCH OUT PAYMENTS AND USE A GRADUATEDPAYMENT PLAN WITH LOW INITIAL PAYMENTS RISING WITH THEIR INCOME 9307300202 930708 COUNTERPOINT RESCUE NAFTA SAFEGUARD THE ENVIRONMENT BY MICHAEL MCCLOSKEY ARE YOU TRYING TO KILL NAFTA IN THE COURTS ONE REPORTER ASKED RECENTLY WHEN US DISTRICT COURT JUDGE CHARLES RICHEY RULED THAT THE TRADE OFFICE IS OBLIGATED TO WRITE AN ENVIRONMENTAL IMPACT STATEMENT ON THE NORTH AMERICAN FREE TRADE AGREEMENT IS THE SIERRA CLUB WHICH WAS A PLAINTIFF IN THE CASE OUT TO GET NAFTA ONE WAY OR ANOTHER THE ANSWER IS NO THE SIERRA CLUB IS NOT A PROTECTIONIST GROUP WE HAVE NO QUARREL WITH REDUCING AND REMOVING TARIFFS WE ARE NOT INSERTING OURSELVES IN TRADE AGREEMENTS TO CREATE HAVOC HOWEVER THE ENVIRONMENT IS AFFECTED BY NAFTA PAST TRADE AGREEMENTS HAVE ALREADY AGGRAVATED ENVIRONMENTAL CONDITIONS ALONG THE USMEXICAN BORDER AND THIS ONE COULD MAKE THEM WORSE IF THE AGREEMENT DOES PRODUCE ECONOMIC BENEFITS IT WILL DO SO BY INCREASING INDUSTRIALIZATION AND THAT BRINGS POLLUTION WITH IT WE COULD END UP WITH TWICE AS MANY FACTORIES ALONG THE BORDER EVEN IF SOME NEW ONES ARE BUILT IN THE INTERIOR OF MEXICO FOR ITS OWN MARKET THE QUESTION IS WHETHER THERE IS ANY ASSURANCE THAT A REASONABLE PORTION OF THE ADDED ECONOMIC BENEFITS WILL BE PLOWED BACK INTO PREVENTING AND ABATING THAT POLLUTION THE PRESENT AGREEMENT PROVIDES NO ASSURANCE THAT WILL BE DONE THE PRESENT AGREEMENT RELIES ON A PARALLEL AGREEMENT THAT LACKS ANY TEETH AND A MECHANISM TO REGULARLY PROVIDE FUNDING WE ESTIMATE THAT IT WILL COST 20 BILLION TO CLEAN UP CONDITIONS ALONG OUR SOUTHERN BORDER VAGUE HOPES THAT MORE WEALTH WILL TRANSLATE INTO CONCRETE ACTION ARE LIKELY TO LEAVE US AS DISAPPOINTED AS IN THE PAST THE AMERICAN MEDICAL ASSOCIATION HAS FOUND THE BORDER ENVIRONMENT TO BE A VIRTUAL CESSPOOL US AUTHORITIES HAD HOPED THAT ALL TOXIC WASTES PRODUCED IN ASSEMBLY PLANTS JUST ACROSS THE BORDER WOULD BE RETURNED TO THE US FOR SAFE PROCESSING ALMOST NONE OF THEM HAVE BEEN CONCRETE PLANS WITH FUNDING AND CLEANUP SCHEDULES ARE NEEDED AS ARE COMMITMENTS TO ACTION IF A REALLY GOOD BORDER CLEANUP PLAN WERE TO BE DEVELOPED THE ENVIRONMENTAL COMMUNITY WOULD HAVE SOMETHING TO GAIN WITH NAFTA AS IT IS THE PLAN IS NOTHING BUT WORDS PROMISING MORE DISCUSSION AND MEETINGS AND INACTION IT WILL FOLLOW IN THE WAKE OF THE EMPTY LA PAZ AGREEMENT OF 1983 THE TRADE AGREEMENT IS ALSO CONTROVERSIAL WITH ENVIRONMENTALISTS BECAUSE IT INTRUDES INTO THE FIELD OF ENVIRONMENTAL POLICYSETTING IT IS NOT JUST ABOUT TRADE IT IS ABOUT HOW THE PARTIES SET STANDARDS FOR POLLUTION CONTROL ABOUT HOW STRICT THEY CAN BE AND ABOUT WHAT STATES AND LOCALITIES CAN DO IT IS ABOUT HAMSTRINGING THE SOVEREIGNTY OF THE US GOVERNMENT IF THE NEGOTIATIONS HAD STEERED CLEAR OF TRYING TO TELL OUR GOVERNMENT WHAT IT CAN DO IN THE ENVIRONMENTAL FIELD WE WOULD BE MUCH LESS CONCERNED BUT NAFTA DOES INTRUDE IN WAYS THAT CAN CAST A CLOUD ON OUR ABILITY TO HAVE THE STRONG PROGRAMS THE AMERICAN PUBLIC WANTS FOR INSTANCE IT INFRINGES ON US LAWS REGULATING THE SAFETY OF IMPORTED FOODS SETTING BIZARRE REQUIREMENTS THAT LAWS GOVERNING PESTICIDE RESIDUES MAY NOT BE ABLE TO MEET IT WOULD CREATE OBLIGATIONS TO MOVE OUR POLLUTION LAWS TOWARD INTERNATIONAL STANDARDS WHICH GENERALLY LAG BEHIND OURS THIS WOULD PUSH US TOWARD WEAKENING OUR LAWS IT WOULD EXPOSE THE STATES TO PRESSURES TO WEAKEN THEIR LAWS IT WOULD ALSO PUT A GREAT BODY OF US WILDLIFE LAWS AT ODDS WITH NAFTA THESE ARE LAWS SUCH AS THOSE PREVENTING THE IMPORT OF ELEPHANT IVORY PREVENTING THE IMPORT OF WILD BIRDS FROM THE TROPICS AND KEEPING TUNA THAT IS NOT DOLPHINSAFE OUT OF OUR COUNTRY SIMILARLY AFFECTED WOULD BE SHRIMP TAKEN IN WAYS THAT ENDANGER SEA TURTLES AND FISH TAKEN WITH DRIFT NETS AND FROM COUNTRIES THAT ARE ENGAGED IN WHALING IN VIOLATION OF TREATY REQUIREMENTS MOREOVER OUR ABILITY TO ENTER INTO FUTURE ENVIRONMENTAL TREATIES WOULD BE CLOUDED BY THE NEED TO GAIN PERMISSION FROM MEXICO AND CANADA EFFORTS WERE MADE BY THE BUSH ADMINISTRATION TO ADDRESS SOME OF THESE PROBLEMS BUT THE FIXES WERE LIMITED AND ARE OFTEN CONTRADICTED BY OTHER LANGUAGE THAT WAS NOT CHANGED IT IS QUITE LIKELY THAT THE REST OF THESE PROBLEMS COULD BE FIXED IF THERE WERE A WILL TO DO SO HOWEVER THE CLINTON ADMINISTRATION SO FAR HAS REFUSED TO ENTERTAIN THE QUESTION BECAUSE IT HAS AGREED NOT TO RENEGOTIATE THE AGREEMENT IT HAS REFUSED TO LOOK SERIOUSLY AT CLARIFYING THE AGREEMENT'S INTENT AND AT PROTOCOLS THAT MIGHT BE NEGOTIATED TO RESOLVE THESE ENVIRONMENTAL PROBLEMS THE ADMINISTRATION HAS AGREED TO TACKLE THE ENFORCEMENT PROBLEM WHILE WE ARE NOT ENTIRELY SATISFIED WITH ITS APPROACH IT IS NONETHELESS A SERIOUS EFFORT TO PREVENT US INDUSTRY FROM FLEEING TO MEXICAN HAVENS WHERE ENFORCEMENT OF POLLUTION LAWS IS LAX WHERE THERE IS A PERSISTENT AND UNJUSTIFIABLE PATTERN OF LAX ENFORCEMENT THERE WOULD BE A REMEDY BUT MEXICO IS STONEWALLING THE IDEA IT IS STILL HOPEFUL THAT IT CAN LURE INDUSTRY WITH LAX ENFORCEMENT INEXPLICABLY CANADA IS SUPPORTING MEXICO HOW LONG WILL WE BE ABLE TO KEEP OUR STANDARDS HIGH IF OUR PARTNERS CAN LOWBALL US ON ENVIRONMENTAL ENFORCEMENT THE COUNTRIES OF THIS CONTINENT CAN ENJOY THE BENEFITS OF FREER TRADE WITHOUT COMPROMISING THE BONA FIDE ENVIRONMENTAL LAWS THAT EACH PARTY WANTS TO HAVE PROFITS FROM FURTHER INDUSTRIALIZATION CAN BE PLOWED BACK INTO CLEANUP THESE LEGITIMATE CONCERNS DO NOT NEED TO STAND IN THE WAY OF A SENSIBLE NAFTA IT IS TIME TO GET SERIOUS ABOUT TAKING CARE OF THESE NEEDS UNFORTUNATELY THE CLINTON ADMINISTRATION IS BEGINNING TO ACT IN A PROPRIETARY WAY ABOUT THE NAFTA IT HAS INHERITED THE ADMINISTRATION IS FINDING REASONS NOT TO TACKLE MOST OF THESE PROBLEMS IT IS TAKING AN INFLEXIBLE POSITION ON THE QUESTION OF DOING AN ENVIRONMENTAL IMPACT STATEMENT BUT SUCH A STATEMENT COULD GIVE IT BREATHING ROOM TO GET A FIRM GRIP ON THE BEST WAY TO RESOLVE THESE PROBLEMS IT HAS FECKLESSLY PUT ITSELF ON A SCHEDULE FOR WRAPPING UP NEGOTIATIONS THAT THROWS AWAY BARGAINING LEVERAGE IT IS ACTING AS IF ITS FUTURE IS TIED TO GETTING THIS AGREEMENT THROUGH WITH ONLY MINIMAL CHANGE THAT ATTITUDE MAY ONLY WORSEN NAFTA'S PROSPECTS IN THE HOUSE CONGRESSIONAL LEADERS HAVE BEEN WARNING THE CLINTON ADMINISTRATION THAT NAFTA CAN'T PASS UNLESS REALLY STRONG ENVIRONMENTAL SAFEGUARDS ARE INCLUDED THIS IS NOT AN IMPOSSIBLE TASK BUT THE PROBLEMS CANNOT BE SOLVED UNLESS THE ADMINISTRATION DEALS WITH THESE SERIOUS CONCERNS THERE IS STILL TIME TO RESCUE NAFTA AND GIVE MOST OF THE ENVIRONMENTAL COMMUNITY A STAKE IN IT BUT THE HOUR IS LATE PRESIDENT CLINTON NEEDS TO TAKE CHARGE AND TELL HIS NEGOTIATORS HE WANTS THE PRIORITIES AND APPROACH CHANGED MR MCCLOSKEY IS CHAIRMAN OF THE SIERRA CLUB SEE RELATED LETTER LETTERS TO THE EDITOR NAFTA FOR A BETTER ENVIRONMENT WSJ JULY 30 1993 9307080085 YY93 MM07 9307300201 930730 DIVIDEND NEWS PILGRIM'S PRIDE CORP PILGRIM'S PRIDE CORP PITTSBURG TEXAS BUOYED BY THREE STRAIGHT QUARTERS OF REBOUNDING EARNINGS REINSTATED ITS 15 CENTASHARE QUARTERLY PAYOUT THE DIVIDEND IS PAYABLE AUG 29 TO SHAREHOLDERS OF RECORD AUG 9 THE MARKETER OF CHICKEN PRODUCTS HAD OMITTED THE DIVIDEND THE PAST TWO QUARTERS BECAUSE OF POOR EARNINGS IN FISCAL 1992 AND PROBLEMS SINCE RESOLVED IN RESTRUCTURING ITS DEBT EARLIER THIS WEEK THE COMPANY REPORTED THAT EARNINGS FOR THE FIRST NINE MONTHS OF ITS FISCAL YEAR WHICH ENDS OCT 2 WERE 17 MILLION OR 62 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 171 MILLION OR 76 CENTS A SHARE 9307300200 930730 YOUR MONEY MATTERS WEEKEND REPORT THREE BULLISH WAYS TO MAKE STOCKS BEARABLE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NO PAIN NO GAIN THAT'S AN UNFORTUNATE FACT OF STOCK MARKET INVESTING TO EARN THE SUPERIOR RETURNS THAT STOCKS CAN DELIVER YOU RUN THE RISK OF SUFFERING SEVERE SHORTTERM LOSSES BUT THERE ARE SOME STRATEGIES THAT CAN MAKE STOCK INVESTING A LITTLE MORE BEARABLE WITH THE STOCK MARKET CLOSE TO A RECORD HIGH NOW MAY BE AN ESPECIALLY GOOD TIME TO CONSIDER THEM EVERYBODY IS CONCERNED ABOUT INVESTING IN THE STOCK MARKET WHEN BY MANY YARDSTICKS STOCKS ARE EXPENSIVE SAYS STEVEN NORWITZ A VICE PRESIDENT WITH T ROWE PRICE ASSOCIATES A BALTIMORE MUTUAL FUND COMPANY BUT SAYS MR NORWITZ THERE ARE THREE TOOLS THAT EQUITY INVESTORS CAN USE TO REDUCE RISK ONE IS TO EXTEND THEIR TIME HORIZON THE SECOND IS TO DIVERSIFY AND THE THIRD IS TO USE DOLLARCOST AVERAGING AT FIRST BLUSH PLUNKING SOME MONEY INTO THE STOCK MARKET IS JUST ABOUT THE RISKIEST THING YOU CAN DO OVER THE 20 YEARS THROUGH DECEMBER 1992 IF YOU HAD YOUR MONEY IN THE LARGECOMPANY STOCKS THAT MAKE UP THE STANDARD & POOR'S 500STOCK INDEX YOU WOULD HAVE SUFFERED A LOSS IN FIVE SEPARATE YEARS 1973 1974 1977 1981 AND 1990 YOUR WORST CALENDAR YEAR LOSS WOULD HAVE BEEN A 265 PLUNGE IN 1974 DOES IT HAVE TO BE THAT BAD NOT NECESSARILY FOR STARTERS OWNING STOCKS BECOMES A LOT MORE PALATABLE IF YOU PLAN TO STICK WITH YOUR INVESTMENTS FOR A NUMBER OF YEARS DURING THE PAST 20 YEARS THERE'S BEEN JUST ONE FIVECALENDARYEAR PERIOD BETWEEN YEAREND 1972 AND YEAREND 1977 WHEN YOU WOULD HAVE LOST MONEY OWNING THE S&P 500 STOCKS PEOPLE SHOULD HAVE AT LEAST A FIVEYEAR TIME HORIZON IF THEY'RE IN STOCKS SAYS MR NORWITZ IF YOU'RE IN THE MARKET FOR ONLY ONE TO THREE YEARS THERE'S A GOOD CHANCE THAT YOU'LL SUSTAIN A LOSS THAT YOU WON'T RECOVER FROM EVEN FOR THOSE WHO PLAN TO STICK WITH THEIR STOCK INVESTMENTS FOR A GOOD LONG TIME LOSING MONEY DURING A FIVEYEAR STRETCH CAN BE PRETTY ROUGH BUT THERE ARE OTHER WAYS TO LESSEN THE PAIN CONSIDER FOR INSTANCE WHAT WOULD HAVE HAPPENED DURING THE PAST TWO DECADES IF YOU HAD OWNED SMALLCOMPANY STOCKS AND FOREIGN STOCKS IN COMBINATION WITH THE LARGECOMPANY STOCKS THAT MAKE UP THE S&P 500 OVER THE PAST 20 YEARS IF YOU HAD SPLIT YOUR MONEY EQUALLY AMONG LARGECOMPANY SMALLCOMPANY AND FOREIGN STOCKS YOU WOULD HAVE MADE MONEY DURING EVERY FIVEYEAR STRETCH ACCORDING TO FIGURES CALCULATED FOR THE WALL STREET JOURNAL BY T ROWE PRICE THIS DIVERSIFIED STOCK PORTFOLIO OFFERED INVESTORS AN ADDED BONUS IT ALSO GENERATED BETTER RETURNS THAN THE S&P 500 ACCORDING TO T ROWE PRICE THE DIVERSIFIED STOCK PORTFOLIO WOULD HAVE RETURNED 136 A YEAR DURING THE PAST 20 YEARS COMPARED WITH 113 FOR THE S&P 500 SOME INVESTMENT ADVISERS RECKON THAT FOREIGN STOCKS AND SMALLCOMPANY STOCKS ARE PARTICULARLY ATTRACTIVE RIGHT NOW WE FEEL THERE'S BETTER VALUE IN SMALLCOMPANY STOCKS AND MANY FOREIGN MARKETS AS WELL AS BETTER GROWTH POTENTIAL SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER THAT'S A COMPELLING COMBINATION MR GREGORY FAVORS SMALLCAP FUNDS SUCH AS BRANDYWINE FUND FOUNDERS DISCOVERY FUND AND SCHOONER FUND AMONG FOREIGNSTOCK FUNDS HE LIKES ACORN INTERNATIONAL HARBOR INTERNATIONAL FUND AND WARBURG PINCUS INTERNATIONAL EQUITY FUND MR GREGORY SUGGESTS OWNING THESE FUNDS IN CONJUNCTION WITH A LARGECOMPANY STOCK FUND SUCH AS SELECTED AMERICAN SHARES BUT DIVERSIFYING AMONG LARGE STOCKS SMALL STOCKS AND FOREIGN STOCKS ISN'T A PANACEA DURING THE PAST 20 YEARS YOU WOULD STILL HAVE LOST MONEY IN ONE THREEYEAR PERIOD BETWEEN YEAREND 1972 AND YEAREND 1975 AS WELL AS IN THREE SEPARATE CALENDAR YEARS 1973 1974 AND 1990 YOUR WORST ONEYEAR LOSS WOULD HAVE BEEN A 229 DRUBBING IN 1974 ARE THERE ANY OTHER WAYS TO MAKE STOCK MARKET INVESTING MORE BEARABLE YOU COULD DIVERSIFY EVEN FURTHER BY MOVING 25 OF YOUR PORTFOLIO INTO BONDS SO THAT YOU HAD EQUAL STAKES IN LARGECOMPANY STOCKS SMALLCOMPANY STOCKS FOREIGN STOCKS AND BONDS AS BEFORE YOU WOULD STILL HAVE LOST MONEY BOTH IN ONE THREEYEAR STRETCH AND IN THREE SEPARATE CALENDAR YEARS BUT YOUR WORST ONEYEAR LOSS WOULD HAVE BEEN A MORE MODEST 157 AND BY ADDING A SMALL STAKE IN BONDS YOU DON'T CRIMP YOUR RETURNS THAT MUCH DURING THE 20 YEARS THROUGH THE END OF 1992 YOU WOULD HAVE EARNED 129 A YEAR BETTER THAN THE 113 ANNUAL GAIN FOR THE S&P 500 AND NOT FAR BELOW THE DIVERSIFIED ALLSTOCK PORTFOLIO'S 136 AFTER THE LONG BOND MARKET RALLY SOME INVESTMENT ADVISERS FEAR THAT BOND PRICES MAY GET PUMMELED AS INTEREST RATES HEAD BACK UP AS A RESULT THOSE LOOKING TO DIVERSIFY OUT OF STOCKS MAY WANT TO BYPASS BONDS FOR THE MOMENT AND INSTEAD MOVE A CHUNK OF THEIR PORTFOLIO INTO A MONEY MARKET FUND FOR ANTSY INVESTORS THERE'S STILL ANOTHER STRATEGY YOU CAN USE TO REDUCE YOUR RISK THE PERFORMANCE FIGURES USED SO FAR PRESUME THAT YOU THROW YOUR MONEY INTO THE MARKET IN ONE GREAT WAD BUT INVESTMENT ADVISERS OFTEN SUGGEST A MORE CAUTIOUS ROUTE KNOWN AS DOLLARCOST AVERAGING BY WHICH YOU MOVE YOUR MONEY INTO THE MARKET IN EQUAL MONTHLY INVESTMENTS IF YOU USE DOLLARCOST AVERAGING TO GRADUALLY BUY A PORTFOLIO COMPRISING EQUALDOLLAR INVESTMENTS IN LARGECOMPANY STOCKS SMALLCOMPANY STOCKS FOREIGN STOCKS AND BONDS YOUR CHANCES OF A BAD LOSS DROP EVEN FURTHER ACCORDING TO T ROWE PRICE IF YOU USED THIS STRATEGY YOU WOULDN'T HAVE SUFFERED A LOSS OVER ANY THREEYEAR PERIOD DURING THE PAST TWO DECADES WHILE YOU WOULD HAVE BEEN HIT WITH A LOSS IN FOUR CALENDAR YEARS 1973 1974 1987 AND 1990 THESE LOSSES WERE SMALL COMPARED WITH THOSE SUSTAINED BY THE OTHER PORTFOLIOS DISCUSSED ABOVE THE POOREST PERFORMANCE WOULD HAVE BEEN A 103 LOSS IN 1974 IT'S AT TIMES LIKE THESE THAT INVESTORS SHOULD BE PUTTING MONEY INTO STOCKS AND DOING IT ON A SYSTEMATIC BASIS SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER THERE ARE TWO THINGS THAT CAN HAPPEN STOCKS CAN GO UP OR STOCKS CAN GO DOWN IF YOU'RE SYSTEMATICALLY INVESTING YOU SHOULD BE HAPPY EITHER WAY IF STOCKS GO UP YOUR STOCKS ARE WORTH MORE IF STOCKS GO DOWN YOU'RE GETTING TO BUY AT LOWER PRICES 9307300199 930730 AMBIX PRODUCTS SEIZED BY US ATTORNEY'S OFFICE NEWARK NJ THE US ATTORNEY'S OFFICE SEIZED PRESCRIPTION AND OVERTHECOUNTER CREAMS GELS AND LIQUIDS MADE BY AMBIX LABORATORIES OF EAST RUTHERFORD NJ FOLLOWING A SUIT ON BEHALF OF THE FOOD AND DRUG ADMINISTRATION ALLEGING THAT AMBIX DRUGS DON'T CONFORM TO CURRENT GOOD MANUFACTURING PRACTICE AMBIX MAKES PRIVATELABEL PRODUCTS FOR DRUGSTORE CHAINS AND WHOLESALE DISTRIBUTORS ITS PRODUCTS INCLUDE ALOE VERA FIRSTAID AND HYDROCORTISONE CREAMS THE GOVERNMENT'S SUIT CITES INADEQUATE SANITARY CONDITIONS TESTING AND CLEANING OF EQUIPMENT DISCOVERED BY FDA INSPECTIONS IN MARCH AND JUNE IT ALSO SAID THAT ONE LOT OF HYDROCORTISONE CREAM MADE BY AMBIX TESTED POSITIVE LAST MARCH FOR STAPHYLOCOCCUS AUREUS BACTERIA AND THAT AMBIX FAILED TO CONDUCT AN INVESTIGATION INTO THE CAUSE THE COMPANY DECLINED TO COMMENT 9307300198 930730 WESTDEUTSCHE LANDESBANK FACES EEOC COMPLAINT NEW YORK A RACE DISCRIMINATION COMPLAINT AGAINST WESTDEUTSCHE LANDESBANK GIROZENTRALE OF GERMANY WAS FILED WITH THE US EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IN NEW YORK CITY IN THE COMPLAINT LAMOTH E FREDERICK A FORMER VICE PRESIDENT WHO IS BLACK STATES THAT HE WAS SUBJECTED TO INTENTIONAL DISCRIMINATION ON ACCOUNT OF HIS RACE ERIC J WALLACH MR FREDERICK'S ATTORNEY SAID MR FREDERICK WAS TRANSFERRED TO A NONEXISTENT POSITION IN THE FINANCE DEPARTMENT LAST SEPTEMBER MR FREDERICK WHO LEFT WESTLB IN MAY JOINED THE GERMAN BANK IN 1991 WHEN IT ACQUIRED SECURITY PACIFIC BANK'S TRADE FINANCE GROUP KATHLEEN COMFREY ATTORNEY FOR WESTLB SAID THE COMPANY HASN'T YET RECEIVED A COPY OF THE COMPLAINT BUT WESTLB INTENDS TO FIGHT THE SUIT VIGOROUSLY SHE SAID THERE'S ABSOLUTELY NO BASIS FOR THE DISCRIMINATION COMPLAINT 9307300197 930730 GINSBURG WINS APPROVAL OF SENATE PANEL FOR COURT WASHINGTON SUPREME COURT NOMINEE RUTH BADER GINSBURG WON UNANIMOUS APPROVAL FROM THE SENATE JUDICIARY COMMITTEE CLEARING THE WAY FOR A VOTE BY THE FULL SENATE AS SOON AS NEXT WEEK SENATORS FROM BOTH PARTIES PREDICTED THAT JUDGE GINSBURG WILL BE CONFIRMED EASILY ALLOWING HER TO BEGIN PREPARATIONS FOR THE HIGH COURT'S 19931994 TERM WHICH BEGINS OCT 4 THE JUDICIARY COMMITTEE'S 180 VOTE CAME AFTER BOTH REPUBLICANS AND DEMOCRATS PRAISED JUDGE GINSBURG FOR HER CAUTIOUS SCHOLARLY APPROACH AS A MEMBER OF THE FEDERAL APPEALS COURT HERE SINCE 1980 SOME REPUBLICANS EXPRESSED HESITATION ABOUT WHAT THEY PERCEIVE AS JUDGE GINSBURG'S LIBERAL VIEWS ON ISSUES SUCH AS ABORTION RIGHTS AND SEX DISCRIMINATION STILL REPUBLICAN MEMBERS OF THE COMMITTEE SAID THE NOMINEE'S SELFRESTRAINT ON THE LOWER COURT AND HER LEGAL SKILL QUALIFIED HER FOR THE HIGH COURT REFLECTING THE BIPARTISAN RELIEF OVER A CONTROVERSYFREE NOMINATION AFTER YEARS OF STORMY CONFIRMATION POLITICS JUDICIARY CHAIRMAN JOSEPH BIDEN OF DELAWARE CONCLUDED THE PANEL'S ROLLCALL VOTE BY EXCLAIMING THANK THE LORD JUDGE GINSBURG WOULD BE ONLY THE SECOND WOMAN JUSTICE AND THE FIRST APPOINTEE OF A DEMOCRATIC PRESIDENT IN 26 YEARS 9307300196 930730 TECHNOLOGY & HEALTH ADULTS SHOULD EXERCISE AT LEAST 30 MINUTES DAILY WASHINGTON ADULTS SHOULD ENGAGE IN AT LEAST 30 MINUTES OF MODERATE PHYSICAL ACTIVITY ALMOST EVERY DAY TO HELP PROTECT AGAINST HEART DISEASE AND OTHER AILMENTS A PANEL OF DOCTORS AND SCIENTISTS RECOMMENDED SUCH ACTIVITY CAN INCLUDE WALKING GARDENING AND STAIRCLIMBING INSTEAD OF STRUCTURED EXERCISE AND SPORTS ACTIVITIES SAID THE PANEL WHICH INCLUDED PEOPLE FROM THE FEDERAL CENTERS FOR DISEASE CONTROL AND PREVENTION AND THE AMERICAN COLLEGE OF SPORTS MEDICINE AN OVERWHELMING NUMBER OF ADULTS AREN'T EVEN GETTING THAT MINIMAL EXERCISE THE GROUP SAID IN A REPORT ONLY 22 OF ADULTS IN A SURVEY REPORTED ENGAGING IN DAILY LIGHT TO MODERATE PHYSICAL ACTIVITY 24 SAID THEY DIDN'T DO ANY LEISURE TIME PHYSICAL ACTIVITY DURING THE PREVIOUS MONTH PERSONS WHO CURRENTLY DO NOT ENGAGE IN REGULAR PHYSICAL ACTIVITY SHOULD BEGIN BY INCORPORATING A FEW MINUTES OF INCREASED ACTIVITY INTO THEIR DAY BUILDING UP GRADUALLY TO 30 MINUTES OF ADDITIONAL PHYSICAL ACTIVITY THE REPORT SAID 9307300195 930730 US CANADA MEXICO MEET ON NAFTA SIDE AGREEMENTS WASHINGTON TRADE MINISTERS FROM THE US CANADA AND MEXICO MET HERE TO TRY TO RESOLVE QUESTIONS THAT ARE HOLDING UP A FINAL AGREEMENT ON THE SIDE DEALS TO THE NORTH AMERICAN FREE TRADE AGREEMENT THE US IS HOPING TO REACH AGREEMENT ON ENFORCEMENT OF ENVIRONMENTAL AND LABOR LAWS EARLY NEXT WEEK THE MINISTERS' GATHERING IS SCHEDULED TO END TODAY BUT US TRADE REPRESENTATIVE MICKEY KANTOR SAID LOWERRANKING TRADE NEGOTIATORS WILL CONTINUE WORK THROUGH THE WEEKEND MR KANTOR AND HIS COUNTERPARTS FROM MEXICO AND CANADA THEN MAY MEET AGAIN NEXT WEDNESDAY AND THURSDAY TO TRY TO COMPLETE THE AGREEMENTS THE TALKS STEM FROM A CAMPAIGN PLEDGE BY PRESIDENT CLINTON TO NEGOTIATE SIDE DEALS TO THE FREETRADE PACT THAT WOULD STRENGTHEN ENFORCEMENT OF ENVIRONMENTAL AND LABOR LAWS BUT THE TALKS HAVE BEEN AT AN IMPASSE OVER THE US DEMAND THAT IT BE ABLE TO IMPOSE TRADE SANCTIONS IF NAFTA PARTNERS DON'T ENFORCE THEIR LABOR AND ENVIRONMENTAL LAWS BESIDES ADDRESSING ENFORCEMENT ISSUES THE NEGOTIATORS ARE TRYING TO AGREE ON A DEVELOPMENT AUTHORITY THAT COULD OVERSEE ENVIRONMENTAL CLEANUP ALONG THE BORDER THE US ESTIMATES THAT CLEANUP COSTS COULD TOTAL 7 BILLION TO 10 BILLION IN THE NEXT DECADE 9307300194 930730 OTC FOCUS STOCKS RISE AMID BOND RALLY SPARKED BY NEWS OF LOWERTHANEXPECTED GDP BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SWELTERING BOND PRICES FOLLOWED A LOWERTHANEXPECTED REPORT ON SECONDQUARTER GROSS DOMESTIC PRODUCT SENDING NASDAQ STOCKS MODERATELY HIGHER THE COMMERCE DEPARTMENT SAID THE ECONOMY GREW IN THE SECOND QUARTER AT AN ANNUAL RATE OF JUST 16 WALL STREET HAD EXPECTED THE GDP TO RISE BY ABOUT 23 LONGTERM GOVERNMENT SECURITIES ROSE MORE THAN A FULL POINT ON THE NEWS DEPRESSING THE LONG BOND'S YIELD TO 657 NEAR ITS 16YEAR LOW ANOTHER REPORT SHOWED THAT INITIAL STATE JOBLESS CLAIMS ROSE BY 43000 TO A TOTAL OF 394000 IN THE JULY 24 WEEK ECONOMISTS HAD EXPECTED CLAIMS TO TOTAL ABOUT 415000 THE NASDAQ COMPOSITE INDEX CLIMBED 165 POINTS OR 023 TO CLOSE AT 70724 STOCKS PLAYED TAG AFTER THE BOND MARKET ALL DAY LONG SAID THOM R BROWN A MANAGING DIRECTOR AT RUTHERFORD BROWN & CATHERWOOD THIS IS A MARKET OF OVERREACTION AN ULTRASENSITIVE MARKET IT LOOKS LIKE IT HAS SHINGLES NEW YORK STOCK EXCHANGE SHARES ALSO ADVANCED ON THE BOND RALLY IN INTRADAY TRADING THE DOW JONES INDUSTRIAL AVERAGE SURPASSED ITS RECORD SET MONDAY AND CLIMBED ABOUT 26 POINTS BUT RETREATED TO END 1397 POINTS OR 039 HIGHER AT 356742 THE BIG BOARD'S COMPOSITE INDEX ADDED 148 POINTS OR 060 TO FINISH AT 24934 HUGH A JOHNSON CHIEF INVESTMENT STRATEGIST AT FIRST ALBANY CORP SAID THE GDP REPORT WOULD INDICATE THAT INVESTMENT IN TECHNOLOGY STOCKS HAS SLOWED FROM A BREAKNECK PACE TO A CANTER HE SAID THE GROWTH OF INVESTMENT IN TECHNOLOGY STOCKS AFTER INFLATION HAS AVERAGED 17 IN THE CURRENT RECOVERY SINCE THE SECOND QUARTER OF 1991 BUT IN THE RECENT SECOND QUARTER ALONE HE SAID THE PACE FELL TO 12 MR JOHNSON SAID THE SMART MONEY IS PAYING ATTENTION TO THESE DATA WHICH MAY BE GIVING THOSE THAT INVEST IN TECHS LESS REASON TO BE EUPHORIC AND ENTHUSIASTIC RUTHERFORD'S MR BROWN SAID THE POSSIBILITY OF SHARP GAINS IN THE OVERTHECOUNTER MARKET CONTINUES TO BE DULLED BY THE FLOOD OF ANEMIC ECONOMIC STATISTICS AND CONCERN OVER THE CLINTON ADMINISTRATION'S BUDGET PLAN CONGRESSIONAL LEADERS TODAY STRUGGLED TO COMPROMISE ON THE GASOLINE TAX IN THE DEFICITREDUCTION PLAN ADVANCING NASDAQ ISSUES BEAT OUT DECLINERS 1444 ISSUES TO 1252 ON TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME OF 233101300 SHARES WEDNESDAY VOLUME TOTALED 225562400 SHARES TECHNOLOGY ISSUES GOT A BIG BOOST FROM GOOD EARNINGS REPORTS BY MICROSOFT AND SUN MICROSYSTEMS LATE WEDNESDAY MICROSOFT IN REDMOND WASH REPORTED FISCAL FOURTHQUARTER NET INCOME OF 87 CENTS A SHARE ABOVE ANALYSTS' ESTIMATES OF 86 CENTS AND LAST YEAR'S 71 CENTS MARKET WATCHERS WEDNESDAY SAID THE NASDAQ MARKET'S PERFORMANCE YESTERDAY WOULD BE TIED CLOSELY TO HOW MICROSOFT FARED THE COMPUTER SOFTWARE FIRM'S SHARES CLIMBED 3/4 TO 79 SUN MICROSYSTEMS IN MOUNTAIN VIEW CALIF EDGED UP 1 TO 29 3/4 AFTER ITS FISCAL FOURTHQUARTER EARNINGS CAME IN LATE WEDNESDAY AT 72 CENTS A SHARE UP FROM 37 CENTS IN THE SAME PERIOD A YEAR EARLIER ANALYSTS HAD LOOKED FOR THE COMPANY TO EARN 63 CENTS SALOMON BROTHERS ANALYST JEFFREY CANIN RAISED HIS RATING ON THE COMPANY'S SHARES TO BUY FROM HOLD AND LIFTED HIS FISCAL 1994 EARNINGS ESTIMATE DELL COMPUTER IN AUSTIN TEXAS GAINED 1 7/8 TO 19 7/8 MARKET PLAYERS SAID THE COMPANY'S SHARES GOT A BOOST ON SHORTSELLING AND BARGAINHUNTING PLATINUM SOFTWARE'S STOCK BENEFITED FROM A NEEDHAM & CO UPGRADE TO BUY FROM HOLD THE BROKERAGE FIRM SAID IT IS NOW MORE COMFORTABLE WITH THE IRVINE CALIF SOFTWARE CONCERN'S PRODUCT MIX THE COMPANY'S SHARES SURGED 6 1/2 TO 34 1/2 MOST OF THE REST OF THE SECTOR FOLLOWED SUIT ORACLE CORP WAS UP 1 TO 51 7/8 APPLIED MATERIALS INCHED UP 2 TO 63 3/4 AND BORLAND INTERNATIONAL SHOT 1 1/8 HIGHER TO 19 7/8 THE NASDAQ BANK INDEX HIT A RECORD FOR THE SECOND STRAIGHT DAY CLIMBING 124 POINTS OR 019 TO CLOSE AT 64481 AMONG ITS COMPONENTS INDEPENDENCE BANCORP GAINED 1 TO 27 3/4 US TRUST ADDED 1 1/4 TO 54 1/2 AND MERIDIAN BANCORP MOVED UP 7/8 TO 31 1/2 9307300193 930730 GERMAN HEALTHCARE SYSTEM HITS SNAGS UNIVERSAL' PROGRAM FACES PADDED BILLING OTHER WOES BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN GESUNDHEIT THE VAUNTED GERMAN HEALTHCARE SYSTEM MAY BE CATCHING A COLD THE COUNTRY'S SYSTEM OF UNIVERSAL HEALTH INSURANCE FINANCED BY A COMBINATION OF PAYROLL DEDUCTIONS AND EMPLOYER CONTRIBUTIONS IS MUCH ADMIRED BY THE CLINTON ADMINISTRATION AS IT LOOKS FOR MODELS TO ASSIST AMERICA IN ERASING OLD HEALTHCARE INEQUITIES NOW HOWEVER GERMAN MEDICINE IS WITNESSING CHANGES NEVER CONTEMPLATED IN THE CENTURY SINCE OTTO VON BISMARCK CREATED THE FORERUNNER OF THIS EGALITARIAN MEDICAL SYSTEM PADDED BILLING RISING MALPRACTICE CLAIMS AND PATIENT DUMPING PROBLEMS FAMILIAR TO AMERICAN MEDICINE ARE BEGINNING TO POP UP HERE AS WELL THE COSTS OF REUNIFICATION OF EAST AND WEST GERMANY HAVE FURTHER STRAINED THE SYSTEM AND DOCTORS WEANED OFF THE EAST'S OLD GOVERNMENT CONTRACTFORLIFE SYSTEM ARE FIGHTING BACK THE AMERICAN WAY THEY ARE SUING DESPITE SUCH GROWING PAINS GERMAN DOCTORS REMAIN FIERCELY PROUD OF THEIR MEDICAL COVERAGE AND ITS PRINCIPLE OF SOLIDARITY WHICH HOLDS THAT A MANUAL LABORER DESERVES THE SAME QUALITY OF CARE AS A CORPORATE TITAN AT THE PUBLIC'S EXPENSE IF A PERSON NEEDS A HEART TRANSPLANT OR A BONE MARROW TRANSPLANT IN THE US YOU READ IN THE NEWSPAPERS ABOUT PEOPLE HAVING TO RAISE THE MONEY SAYS WALTER SCHAFFARTZIK AN INTENSIVECARE UNIT DOCTOR IN BERLIN HERE IT'S COVERED YOU WOULDN'T UNDERSTAND IT MICHAEL ARNOLD PROFESSOR AT TUBINGEN UNIVERSITY CHIDES AN AMERICAN VISITOR THE RICH PAY FOR THE POOR THE HEALTHY PAY FOR THE SICK THE YOUNG PAY FOR THE OLD MOREOVER GERMANS ENJOY HEALTH PERKS SUCH AS MASSAGE AND SPA TREATMENTS BUT SUCH AMENITIES COST GERMANY'S HEALTHCARE BILL COMPRISED 81 OF ITS GROSS NATIONAL PRODUCT IN 1992 THAT'S LOWER THAN THE US BURDEN OF 14 BUT STILL TOO MUCH GERMAN EXPERTS SAY THIS YEAR CONTRIBUTIONS TO THE SICKNESS FUNDS WHICH ARE BASICALLY COVERAGE GROUPS ARE RISING TO ABOUT 134 PER EMPLOYEE UP FROM ABOUT 122 IN 1992 SAID DR ARNOLD IN AN INTERVIEW AS A RESULT GERMAN DOCTORS FACE TOUGH SCRUTINY AND FINES FOR OVERPRESCRIBING DRUGS OR DEVIATING FROM AVERAGE TREATMENT PRACTICES THE GREAT PRIVILEGE OF OUR SYSTEM IS THAT EVERY MAN AND WOMAN CAN HAVE INSURANCE SAYS HANS WEITZEL AN OBSTETRICIAN AND GYNECOLOGIST IN BERLIN BUT IT HAS COME TO THE POINT THAT IT DOESN'T WORK IT IS TOO EXPENSIVE MOREOVER GERMANY NOW MUST ABSORB FORMER EAST GERMAN SOCIAL WELFARE PROGRAMS WHICH ONCE ATE UP 70 OF THE EAST'S GNP NO ECONOMY COULD STAND IT DR ARNOLD SAYS ADDING THAT GERMANY'S TOTAL SOCIAL TAB WILL RISE TO 33 OF GNP FROM 29 WHEN REUNIFICATION IS COMPLETE MEANWHILE IN THE WARDS AND CLINICS OF THIS RECENTLY SPLICED CITY DOCTORS AND PATIENTS BRACE FOR CUTBACKS AND CHANGES IN ITS MEDICAL CULTURE IN THE FORMER EAST BERLIN THE CHARITE HOSPITAL OF HUMBOLDT UNIVERSITY IS WEANING PATIENTS AWAY FROM ITS TEEMING WARDS AND CLINICS ONCE THE SITE OF EAST GERMANY'S ONLY MAGNETIC RESONANCE IMAGING MRI MACHINE THE CHARITE WAS A MEDICAL MAGNET ITS CLINICS WHICH STAGGERED UNDER 300000 OUTPATIENT VISITS IN 1989 ARE BEING TRIMMED BACK TO 70000 PATIENTS A YEAR ITS 2000BED HOSPITAL IS BEING CUT TO 1350 THERE IS NO CHOICE SAYS MEDICAL DIRECTOR INGRID REISINGER THIS IS TOO MUCH PATIENT VOLUME FOR A TEACHING HOSPITAL BUT PATIENTS ARE RELUCTANT TO LEAVE THE SIMPLE AND CENTRALIZED EAST BERLIN CARE EAST BERLINER NORBERT HAUFFE A 35YEAROLD BARTENDER RECALLS THE CHARITE WAS LIKE A FACTORY BUT EACH VISIT WAS HANDLED WITH A SIMPLE STAMP IN HIS HEALTH RECORD BOOK SINCE REUNIFICATION HE SEES A PRIVATE DOCTOR IN THE WEST HE LIKES THE SYSTEM'S GEMUTLICHKEIT OR FRIENDLINESS BUT NOT ITS BUREAUCRACY IT IS VERY COMPLICATED WE DO IT WITH MANY PAPERS MANY TICKETS HE SAYS WITH A RUEFUL GRIN FOR SUCH REASONS DR REISINGER SAYS PATIENTS STILL COME TO THE CHARITE THEY DON'T TRUST THE NEW SYSTEM NOR DO EAST GERMAN DOCTORS EVEN THOUGH SALARY LEVELS ARE BETTER UNDER THE NEW SYSTEM DR REISINGER SAYS DOCTORS WILL SUE TO KEEP THEIR LIFE CONTRACTS TRADITIONALLY GERMANS HAVE EXPRESSED A HIGH DEGREE OF SATISFACTION WITH THEIR CARE BUT THESE DAYS MORE PATIENTS TAKE THEIR GRIPES TO COURT DR WEITZEL CHIEF OF OBSTETRICS AND GYNECOLOGY AT THE FREE UNIVERSITY OF BERLIN'S STEGLITZ CLINIC FINDS HIS ANNUAL MALPRACTICE INSURANCE PREMIUMS HAVE QUINTUPLED IN RECENT YEARS TO 25000 MARKS 15000 NEONATOLOGIST HANS VERSMOLD WHO TREATS FRAGILE PREMATURE BABIES AT THE STEGLITZ CLINIC CONFIRMS THE RUSH TO LITIGATE IF A BABY LEAVES YOUR OFFICE WITH A HANDICAP A LAWYER IS ALREADY WRITING YOU FOR COPIES OF THE BABY'S CHART HE SAYS THIS IS VERY NEW RATIONED CARE IS A MAJOR FISCAL TOOL OF COURSE AND ITS EDGE WAS SHARPENED BY REFORMS ENACTED JAN 1 DOCTORS HERE ARE FINED FOR OVERPRESCRIBING DRUGS OR OTHER TREATMENTS DR ARNOLD DEFENDS THE PRACTICE OF RATIONING OUR RATIONING SYSTEM SAYS A DOCTOR'S TREATMENT PRACTICES MUST BE 50 ABOVE AVERAGE BEFORE HE OR SHE IS ASKED TO EXPLAIN ONE SECRET OF GERMAN HEALTHCARE RATIONING IS SIMPLY AN ACCEPTANCE OF DEATH OBSERVERS SAY EUROPEANS HAVE ALWAYS VIEWED DEATH AS PART OF NATURE SAYS GERMANBORN ECONOMIST UWE REINHARDT OF PRINCETON UNIVERSITY AMERICANS SEE DEATH AS AN OPTION BUT MANY HEALTHIER GERMAN PATIENTS DON'T LIKE MAKING DO WITH LESS CARE A YOUNG BERLIN WOMAN TROUBLED BY STRESS AND MUSCLE PAINS USED TO GET MASSAGES BY PRESCRIPTION BUT RECENTLY HER OLD DOCTOR WAS FINED FOR OVERPRESCRIBING MASSAGE AND CUT HER OFF THE PATIENT SOUGHT CARE ELSEWHERE STRIPPEDDOWN REIMBURSEMENT SCHEMES WHICH PAY DOCTORS AS LITTLE AS EIGHT MARKS ABOUT 480 FOR A SIMPLE OFFICE VISIT ARE DRIVING SOME GERMAN DOCTORS TO INFLATE THEIR OFFICE VOLUME OR EVEN TO PAD THEIR BOOKS GERMAN DOCTORS WORK LIKE HAMSTERS IN A TREADMILL SAYS DR ARNOLD ONE BAVARIAN DOCTOR EVEN CLAIMED TO HAVE WORKED 27 HOURS A DAY ON CHRISTMAS EVE DR ARNOLD SAYS HE WAS CHEATING WITH DOCTORS UNDER PRESSURE TO PARE DOWN THEIR CARE DR ARNOLD SAYS THERE'S A DANGER GERMANY WILL EXPERIENCE MORE PATIENT DUMPING ONE PEDIATRICIAN RECENTLY SHIPPED A SERIOUSLY INFECTED YOUNGSTER TO THE HOSPITAL RATHER THAN TREAT THE CHILD AT HOME AND FACE SCRUTINY HE FEARED HE MIGHT BE ASKED WHY DID YOU SPEND SO MUCH' DR ARNOLD SAYS LAST YEAR HE WOULDN'T HAVE DONE THAT REGINE WOSNITZA CONTRIBUTED TO THIS ARTICLE 9307300192 930730 BRITISH BANKS' SHARES RECEIVE MIXED REVIEWS SOME ANALYSTS THINK MOST OF GOOD NEWS ALREADY IS REFLECTED IN PRICES BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON HAS THE STEAM GONE OUT OF BRITISH BANK SHARES ON THE FACE OF THINGS IT SHOULDN'T HAVE FOR THE FIRST TIME IN YEARS THERE'S MORE GOOD NEWS FOR BRITISH BANKS THAN BAD AFTER THREE YEARS OF GLOOM BRITAIN'S ECONOMY IS RECOVERING PROVISIONS FOR BAD LOANS ARE STABLE OR FALLING FEE INCOME AND EARNINGS ON CURRENCY AND SECURITIES TRADING ARE RISING COSTS ARE BEING CONTAINED AND REDUCED AND YET AS LLOYDS BANK PLC KICKS OFF THE SECTOR'S SEMIANNUAL REPORTING ROUND TODAY AMID EXPECTATIONS OF YET ANOTHER STRONG EARNINGS PERFORMANCE MOST OF THE GOOD NEWS SEEMS ALREADY TO BE FULLY REFLECTED IN SHARE PRICES AS A RESULT MANY ANALYSTS ARGUE THEY ARE UNLIKELY TO STRENGTHEN MUCH FURTHER AFTER RISING 60 AND OUTPERFORMING THE UK STOCK MARKET BY NEARLY ONETHIRD IN THE PAST 12 MONTHS WE THINK THE BANK SECTOR HAS REACHED ITS CEILING SAID PETER TOEMAN OF HOARE GOVETT CONCURS HUGH PYE OF ROBERT FLEMING SECURITIES MUCH OF THE GOOD NEWS HAS BEEN DISCOUNTED ALREADY THAT'S DEFINITELY THE VIEW OF MICHAEL LEVER OF SMITH NEW COURT SECURITIES WHO SPARKED A SHORTLIVED FALL IN BANK SHARES THIS MONTH WHEN HE PUBLISHED A REPORT SUGGESTING THAT TOUGHENING COMPETITION WOULD RESTRAIN FUTURE EARNINGS GROWTH THE RATINGS ON THE SECTOR HAVE BEEN PUSHED UP TO SUCH A LEVEL THAT EVEN OVER SEVERAL YEARS THERE'S NOW LITTLE SCOPE FOR UPSIDE POTENTIAL THOUGH THERE MAY BE SOME GAINERS HE SAID OVERALL WE DON'T SEE THE SECTOR TAKING ANOTHER LEG UPWARDS INSTITUTIONAL INVESTORS IN PARTICULAR ARE LIKELY TO MOVE OUT OF BANK STOCKS AS SOON AS THEY SEE MORE LUCRATIVE OPPORTUNITIES ELSEWHERE HE SAID NOT EVERYONE SHARES HIS GLOOM HOWEVER BANK SHARES RECOVERED THIS WEEK AND MR PYE FOR ONE STILL THINKS THAT BANK STOCKS CAN OUTPERFORM THE BRITISH MARKET BY AROUND 15 OVER THE NEXT 12 MONTHS LOWER INTEREST RATES AROUND THE CORNER AND A PROBABLE UPTURN IN BRITAIN'S INFLATION RATE AT THE END OF THIS YEAR WILL BOTH HELP TO BOOST THEM HE SAID WHAT'S MORE SAID CHRIS WILLIAMS OF FOXPITT KELTON THERE'S ALWAYS A POSSIBILITY THAT AFTER THE RESULTS' ANNOUNCEMENTS BANKS WILL GO THROUGH A BOUT OF WEAKNESS SUCH AN EVENT HE SUGGESTED WOULD BE A BUYING OPPORTUNITY THE QUESTION IS WHAT STOCKS TO BUY STANDARD CHARTERED PLC THANKS TO ITS INVOLVEMENT IN BUOYANT ECONOMIES IN THE FAR EAST IS RECOMMENDED BY MANY ANALYSTS IT WILL ANNOUNCE MIDTERM FIGURES ON AUG 12 AND ANALYSTS EXPECT A STRONG INCREASE IN PRETAX EARNINGS TO AROUND 180 MILLION 2691 MILLION FROM 64 MILLION A YEAR AGO SOME ALSO EXPECT AN INCREASED INTERIM DIVIDEND OF 75 PENCE 112 CENTS OR MORE PER SHARE AGAINST SEVEN PENCE A YEAR AGO BUT THERE THE CONSENSUS SEEMS TO END BARCLAYS FOR EXAMPLE THOUGH STILL REGARDED AS A BUY BY SOME ANALYSTS AS A RECOVERY STOCK IS RATED A SELL BY OTHERS AFTER RECENT STRONG GAINS ABBEY NATIONAL TOO DESPITE A STRONG PERFORMANCE IN SHARE PRICE TERMS AND EXPECTATIONS OF INCREASED FIRSTHALF PROFIT AND A HIGHER INTERIM DIVIDEND IS RATED A SELL BY MANY ANALYSTS BECAUSE OF RISING COMPETITIVE PRESSURES IN THE MORTGAGE SECTOR WHERE IT IS ONE OF THE LEADERS THE COMPANY HAS A LONGTERM STRUCTURAL PROBLEM IN TERMS OF THE MORTGAGE MARKET SAID HOARE GOVETT'S MR TOEMAN THOUGH THAT MARKET HAS BEEN EXCESSIVELY PROFITABLE IN THE PAST HE SAID WE'RE NOT SURE THAT SUCH PROFIT LEVELS CAN BE MAINTAINED LLOYDS WILL SET THE TONE FOR THE SECTOR AS A WHOLE IT'S EXPECTED TO REPORT FIRSTHALF PRETAX EARNINGS OF AROUND 485 MILLION UP FROM 369 MILLION A YEAR AGO ANALYSTS WIDELY EXPECT AN INCREASE IN ITS INTERIM DIVIDEND TO 65 PENCE A SHARE FROM 59 PENCE LLOYDS IS RATED A BUY BY JOHN AITKEN OF UBS LTD WHO CALLS IT A WELLCAPITALIZED BANK WITH GOOD MANAGEMENT BUT IT GETS WEAKER PLAUDITS FROM OTHER ANALYSTS LARGELY BECAUSE IT'S ALREADY ONE OF BRITAIN'S MOST EXPENSIVE BANK STOCKS WE RECOGNIZE THEY'LL PAY A BUMPER DIVIDEND BUT THE MARKET MAY LOOK A BIT BEYOND THAT SAID SMITH NEW COURT'S MR LEVER WHO SAID SHOULD INVESTORS TAKE THEIR PROFITS AFTER RECENT STRONG RISES DESPITE LLOYDS' EXCELLENT MANAGEMENT RECORD HE SAID IT HAS FINETUNED ITS BUSINESS TO A POINT WHERE IT HAS LITTLE OBVIOUS ROOM FOR FURTHER EARNINGS GROWTH THOUGH IT STILL RETAINS A CAPACITY TO SURPRISE HE CONCEDES WE DON'T KNOW WHERE THE NEXT WHITE RABBIT IS COMING FROM NATIONAL WESTMINSTER BANK PLC GETS SIMILARLY MIXED REVIEWS LIKE LLOYDS NATWEST IS EXPECTED TO SHOW STRONGER FIRSTHALF PRETAX EARNINGS AT AROUND 285 MILLION AGAINST 211 MILLION A YEAR AGO WHEN IT UNVEILS ITS INTERIM RESULTS ON TUESDAY MR AITKEN EXPECTS NATWEST TO RAISE ITS INTERIM DIVIDEND TO 65 PENCE FROM 61 PENCE AND HE SAID HE'S A BUYER NATWEST HAS GREATLY IMPROVED ITS MANAGEMENT AND THERE HAS BEEN A GENERAL IMPROVEMENT IN EARNINGS HE SAID NORRIE MORRISON OF KLEINWORT BENSON SECURITIES BY CONTRAST PLAYS DOWN EXPECTATIONS OF A DIVIDEND INCREASE ON THE GROUND THAT NATWEST NEEDS TO STRENGTHEN ITS CAPITAL BASE BARCLAYS MEANWHILE IS KEEPING THE MARKET GUESSING WITH FORECASTS FOR ITS FIRST HALF PRETAX EARNINGS DUE OUT ON THURSDAY RANGING FROM 80 MILLION TO 250 MILLION AGAINST 51 MILLION A YEAR EARLIER 9307300191 930730 DIVIDEND NEWS COLLINS INDUSTRIES INC COLLINS INDUSTRIES INC HUTCHINSON KAN SAID IT WAS CUTTING ITS DIVIDEND IN HALF TO 125 CENTS FROM 25 CENTS A SHARE BECAUSE OF THE POSSIBLE IMPACT OF A CLASS ACTION SHAREHOLDER LAWSUIT THE AMBULANCE MAKER WAS SUED IN MAY AFTER THE COMPANY DISCLOSED THAT AN INTERNAL INVESTIGATION FOUND RESULTS HAD BEEN MISSTATED BOTH THE PRESIDENT AND CHIEF FINANCIAL OFFICER RESIGNED AFTER THE DISCOVERY THE CASH DIVIDEND WILL BE PAYABLE AUG 20 TO SHAREHOLDERS OF RECORD AUG 10 THE PRESIDENT OF COLLINS INDUSTRIES INC HUTCHINSON KAN DIDN'T RESIGN AFTER AN INTERNAL INVESTIGATION FOUND RESULTS HAD BEEN MISSTATED AS WAS INCORRECTLY REPORTED IN AN ARTICLE FRIDAY THE CHIEF FINANCIAL OFFICER AND THE PRESIDENT OF A SUBSIDIARY BOTH RESIGNED 9307300190 930730 WHO'S NEWS SANTA MONICA BANK SANTA MONICA BANK SANTA MONICA CALIF JOE L WALLING 76 YEARS OLD WILL RETIRE AS CHIEF EXECUTIVE SEPT 30 HE WILL REMAIN CHAIRMAN OF THE BOARD PRESIDENT AUBREY L AUSTIN SAID A SUCCESSOR FOR MR WALLING HASN'T BEEN NAMED 9307300189 930730 POLITICS & POLICY PEROT SET TO STEP UP ATTACK ON CLINTON ECONOMIC PLAN WASHINGTON ROSS PEROT IS ABOUT TO STEP UP HIS ATTACKS ON PRESIDENT CLINTON'S ECONOMIC PROGRAM JUST AS IT APPROACHES ITS CRUCIAL VOTE MR PEROT WHO HINTED IN A WALL STREET JOURNAL INTERVIEW EARLIER THIS WEEK THAT HE WOULD BECOME MORE VOCAL IN HIS OBJECTIONS ONCE HOUSE AND SENATE NEGOTIATORS FINISH THE PLAN HAS SCHEDULED FIVE TELEVISION APPEARANCES FOR THIS WEEKEND ONE OF THOSE IS TO BE AN APPEARANCE AT A TELETHON TO RAISE MONEY FOR VICTIMS OF THE MIDWEST FLOOD BUT THE OTHERS ARE NEWS INTERVIEW PROGRAMS SURE TO FOCUS ON MR PEROT'S VIEWS OF THE DEFICITCUTTING PLAN NOW BEING WRAPPED UP BY LAWMAKERS THE TV BLITZ IS A WORRISOME PROBLEM FOR THE CLINTON TEAM WHICH IS PREPARING TO RESPOND TO AN EXPECTED ONSLAUGHT OF PEROT CRITICISMS IN THE JOURNAL INTERVIEW MR PEROT SAID HE AND HIS SUPPORTERS CAN'T SUPPORT THE PLAN THAT IS TAKING SHAPE BECAUSE IT FAILS TO BALANCE THE BUDGET HE SAID CONGRESS SHOULD BACK OFF FROM THE PLAN AND CONVENE A BIPARTISAN BUDGET SUMMIT TO REWRITE IT BUT THAT IDEA HAS LITTLE SUPPORT AMONG EITHER DEMOCRATS OR REPUBLICANS 9307300188 930730 CHINESE OFFICIAL TRIES TO REASSURE WESTERN INVESTORS BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINESE VICE PREMIER ZHU RONGJI IS SEEKING TO DISPEL FOREIGN INVESTORS' CONCERN THAT BEIJING IS STEERING CHINA TOWARD A SHARP PAINFUL ECONOMIC DOWNTURN MR ZHU TOLD A GROUP OF SENIOR EXECUTIVES FROM GOLDMAN SACHS & CO AT A RECENT MEETING IN BEIJING THAT CHINA ISN'T ADOPTING AUSTERITY MEASURES THAT WOULD STIFLE ECONOMIC GROWTH RATHER CHINA IS TRYING TO REDIRECT FINANCIAL RESOURCES AWAY FROM SPECULATIVE SECTORS TO AREAS THAT ARE MORE IMPORTANT FOR THE OVERALL ECONOMY HE SAID THE VICE PREMIER'S EXPLANATION OF THE CURRENT ECONOMIC TURMOIL WERE HIS FIRST OFFERED TO THE WEST SINCE THE COUNTRY LAUNCHED IN LATE JUNE A 16POINT PROGRAM AIMED AT TIGHTENING BANK CREDITS AND SQUEEZING THE PROPERTY SECTOR WORRIES THAT THESE MEASURES WOULD BE TOO DRACONIAN HAVE GIVEN PAUSE TO SOME POTENTIAL FOREIGN INVESTORS MR ZHU ALSO TOLD THE GOLDMAN SACHS EXECUTIVES TO FEEL FREE TO REPEAT HIS WORDS AT INTERNAL MEETINGS CONVENED IN THE PAST TWO MONTHS MR ZHU REPEATEDLY ACKNOWLEDGED SERIOUS PROBLEMS WITH ECONOMIC OVERHEATING ACCORDING TO CHINESE OFFICIALS BUT ON SATURDAY MR ZHU TOLD THE VISITORS THAT THE ECONOMY AS A WHOLE ISN'T OVERHEATING ONLY CERTAIN SECTORS ARE THUS UNDER HIS PLAN CREDITTIGHTENING MEASURES ARE HITTING ONLY CERTAIN SECTORS OF THE ECONOMY SUCH AS THE PROPERTY MARKET FOR VILLAS AND LUXURIOUS APARTMENTS HE TOLD THE GROUP LOANS ILLEGALLY EXTENDED TO THESE PROJECTS WILL BE CALLED IN AND THE RESOURCES REDIRECTED TO SUPPORT INFRASTRUCTURE ENERGY AND AGRICULTURAL PROJECTS 9307300187 930730 BED BATH & BEYOND'S JULY SALES SPRINGFIELD NJ BED BATH & BEYOND INC SAID JULY SALES ROSE 43 TO 235 MILLION FROM THE YEAREARLIER 165 MILLION WHILE COMPARABLE STORE SALES ROSE 11 THE COMPANY OPERATES A NATIONWIDE CHAIN OF DOMESTICS AND HOME FURNISHINGS SUPERSTORES 9307300186 930730 PEPPERAND SALT RIGHT AT THE POVERTY LEVEL IF WE ALL DO THE WAVE 9307300185 930730 TEXAS INSTRUMENTS REDEMPTION DALLAS TEXAS INSTRUMENTS INC SAID IT WOULD REDEEM 37 MILLION OF ITS 74 MILLION IN 226 DEPOSITARY SHARES OUTSTANDING ON SEPT 10 EACH DEPOSITARY SHARE WILL BE EXCHANGED FOR 0547304 OF A SHARE OF COMMON STOCK PLUS 251111 CENTS RECORD DATE FOR THE CALL WILL BE AUG 9 DEPOSITARY SHARES TO BE REDEEMED WILL BE SELECTED BY LOT 9307300184 930730 ALLIEDSIGNAL PROFIT ROSE 21 TO HIGH IN SECOND QUARTER BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL ALLIEDSIGNAL INC BOLSTERED BY PRODUCTIVITY GAINS AND SIGNIFICANT IMPROVEMENTS IN SEVERAL OF ITS MARKETS SAID SECONDQUARTER PROFIT ROSE 21 TO A RECORD 170 MILLION SENDING ITS STOCK TO A RECORD HIGH BUT SOME OF THE COMPANY'S BUSINESSES CONTINUED TO POST WEAK RESULTS THEY INCLUDED ITS AEROSPACE SEGMENT WHICH SUFFERS FROM A DOWNTURN IN THE COMMERCIAL AIRLINE INDUSTRY AND THE AUTOMOTIVE BUSINESS IN EUROPE BECAUSE OF A RECESSION THERE ALLIEDSIGNAL EARNED 121 A SHARE IN THE SECOND QUARTER UP FROM 140 MILLION OR 99 CENTS A SHARE A YEAR EARLIER SALES WERE 306 BILLION ABOUT THE SAME AS THE 308 BILLION LAST YEAR IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ALLIEDSIGNAL'S STOCK ROSE 250 TO CLOSE AT 71375 THE SHARP PROFIT INCREASE IN THE FACE OF DIFFICULT ECONOMIC CONDITIONS IN SOME MAJOR MARKETS IMPRESSED BUT DIDN'T SURPRISE WALL STREET ANALYSTS WHO FOUND THE RESULTS IN LINE WITH THEIR ESTIMATES THE STOCK SURGE HAD MORE TO DO WITH A VERY IMPRESSIVE PRESENTATION ON THE COMPANY'S OUTLOOK BY CHAIRMAN LAWRENCE A BOSSIDY WHO SPOKE TO ANALYSTS SOON AFTER THE COMPANY ANNOUNCED ITS RESULTS SAID SIDNEY HELLER AN ANALYST WITH SHEARSON LEHMAN BROTHERS INC THERE WAS NO REAL NEWS BUT WHEN YOU LISTEN TO HIM TALK ABOUT STRATEGY HOW HE IS GROWING THE COMPANY AND SEE WHAT HE HAS DONE IT HAS A NICE POSITIVE EFFECT ON THE STOCK MR HELLER SAID MR BOSSIDY SAID IN AN INTERVIEW THAT THE LATEST PERIOD WAS THE BEST OPERATING QUARTER SINCE I HAVE BEEN THERE MR BOSSIDY TOOK OVER THE HELM IN JULY 1991 AND SINCE THEN HAS AGGRESSIVELY CUT COSTS AND SOLD UNDERPERFORMING ASSETS MR BOSSIDY SAID THE LATEST RESULTS DEMONSTRATE THE COMPANY'S DETERMINATION TO PRODUCE CONTINUING EARNINGS GAINS HE SAID THAT HE STANDS BY HIS PREVIOUS EARNINGS ESTIMATES OF BETWEEN 450 AND 475 A SHARE FOR THIS YEAR IN 1992 THE COMPANY BASED IN MORRIS TOWNSHIP NJ EARNED 380 BEFORE CHARGES RELATED TO ACCOUNTING CHANGES FOR THE SIX MONTHS THE COMPANY EARNED 319 MILLION OR 225 A SHARE COMPARED WITH A LOSS OF 985 MILLION OR 703 A SHARE A YEAR EARLIER THE 1992 FIGURES ARE RESTATED TO REFLECT ACCOUNTING CHANGES WITHOUT THE ACCOUNTING CHANGES THE COMPANY HAD A PROFIT OF 262 MILLION OR 187 A SHARE IN THE 1992 PERIOD SIXMONTH SALES DECLINED ABOUT 2 TO 596 BILLION FROM 605 BILLION 9307300183 930730 WHO'S NEWS WHITTAKER CORP WHITTAKER CORP LOS ANGELES THOMAS A BRANCATI WAS NAMED PRESIDENT AND ELECTED A DIRECTOR OF THIS AEROSPACE AND DEFENSE ELECTRONICS CONCERN MR BRANCATI 57 YEARS OLD HAD BEEN PRESIDENT OF WHITTAKER'S ELECTRONIC SYSTEMS UNIT SINCE 1987 HE SUCCEEDS JOSEPH F ALIBRANDI 64 WHO WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OF THE COMPANY 9307300182 930730 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK CLIFFORD L ALEXANDER JR 59 YEARS OLD WAS ELECTED A DIRECTOR OF THE PHARMACEUTICALS AND FOODS CONCERN INCREASING THE BOARD'S SIZE TO 14 MR ALEXANDER IS PRESIDENT OF ALEXANDER & ASSOCIATES INC A PRIVATE CONSULTING FIRM A PAST SECRETARY OF THE ARMY AND CHAIRMAN OF THE FEDERAL EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 9307300181 930730 OHM TO POST GAINS FINDLAY OHIO OHM CORP A HAZARDOUSWASTETREATMENT CONCERN SAID IT EXPECTS TO POST EARNINGS PER SHARE FOR ITS SECOND QUARTER OF NINE OR 10 CENTS UP FROM SEVEN CENTS IN THE YEAREARLIER QUARTER THE COMPANY WHICH EXPECTS TO REPORT FINAL RESULTS NEXT WEEK SAID THE GAINS REFLECT CLIENT BASE DIVERSIFICATION AS WELL AS STRONGER GOVERNMENT BUSINESS IT EXPECTS POSITIVE EARNINGS COMPARISONS FOR THE REMAINING HALF OF THE YEAR 9307300180 930730 AMERICAN ELECTRIC UNIT'S BONDS COLUMBUS OHIO OHIO POWER CO A UNIT OF AMERICAN ELECTRIC POWER CO SAID IT WILL REDEEM THE ENTIRE 80 MILLION PRINCIPAL AMOUNT OUTSTANDING OF ITS FIRST MORTGAGE BONDS 9 SERIES DUE 1994 THE REDEMPTION DATE IS SEPT 1 THE COMPANY SAID THE BONDS WILL BE REDEEMED AT 10045 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THROUGH THE REDEMPTION DATE CHEMICAL BANK NEW YORK IS THE REDEMPTION AGENT 9307300179 930730 PPG WINS TRIAL AGAINST TEXTRON PITTSBURGH PPG INDUSTRIES INC SAID IT RECEIVED A 28 MILLION JUDGMENT IN A JURY TRIAL AGAINST TEXTRON INC FOR INFRINGING PPG'S PATENT ON A FIREPROTECTIVE COATING FOR STEEL PPG FILED THE SUIT IN 1990 TO STOP TEXTRON AND AVCO THE COMPANY TEXTRON ACQUIRED IN 1985 FROM INFRINGING ON ITS PATENT FOR PITTCHAR INTUMESCENT COATING A TEXTRON SPOKESMAN SAID IT EXPECTS TO FILE POSTTRIAL MOTIONS TO HAVE THE VERDICT SET ASIDE OR MODIFIED AND WILL CERTAINLY CONSIDER AN APPEAL 9307300178 930730 WESTERN GAS RESOURCES INC DENVER WESTERN GAS RESOURCES INC SAID IT COMPLETED THE ACQUISITION OF MOUNTAIN GAS RESOURCES INC FOR ABOUT 1646 MILLION INCLUDING TRANSACTION COSTS AND THE ASSUMPTION AND PAYOFF OF CERTAIN LONGTERM DEBT WESTERN AND MOUNTAIN GAS OWN AND OPERATE NATURALGAS GATHERING AND PROCESSING FACILITIES WESTERN SAID IT SEEKS TO BUY MORE SYSTEMS AND TO EXPAND ITS MARKETING AREA THROUGH CONSTRUCTION 9307300177 930730 IBM SEEKS NEW MARKET ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP LAUNCHED A NEW BUSINESS TO SELL PERSONALCOMPUTER MONITORS TO CUSTOMERS OUTSIDE IBM THE MOVE IS PART OF A BROADER PUSH BY THE COMPUTER CONCERN TO FIND NEW MARKETS FOR ITS COMPUTER PARTS WHICH IT TRADITIONALLY BUILT EXCLUSIVELY FOR ITS OWN USE IBM INTRODUCED A LINE OF MONITORS AT PRICES RANGING FROM 500 TO 1600 IBM SAID THE PRODUCTS INCLUDE FEATURES TO LOWER ELECTROMAGNETIC EMISSIONS AND SAVE POWER WHEN THE MONITORS AREN'T IN USE 9307300176 930730 TRAVEL FLIERS DISCOVER THEY DON'T FARE WELL ON THE WEEKENDS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL TRAVELERS SHOULD THINK TWICE BEFORE BUYING AIRLINE TICKETS ON A WEEKEND MANY CARRIERS THESE DAYS TEST FARE INCREASES BY RAISING PRICES ON FRIDAY NIGHTS SATURDAYS AND SUNDAYS WHEN FEW TICKETS ARE SOLD IF THEIR RIVALS DON'T GO ALONG THE FARES COME DOWN ON MONDAY THESE TWODAY FARE INCREASES ARE THE UNANTICIPATED BYPRODUCT OF A GOVERNMENT ATTEMPT TO PREVENT ALLEGED COLLUSION ON FARES CARRIERS USED TO SIGNAL PLANNED FARE INCREASES IN COMPUTER RESERVATION SYSTEMS AND THEN WAIT TO SEE WHETHER ALL OTHER AIRLINES FOLLOWED SUIT A SINGLE DEFECTOR COULD SCUTTLE AN INCREASE BECAUSE THE OTHER AIRLINES WOULDN'T RISK LOSING PASSENGERS TO A LOWERPRICED RIVAL BUT A JUSTICE DEPARTMENT CONSENT DECREE WHICH MOST MAJOR AIRLINES HAVE BEEN FOLLOWING SINCE JANUARY HAS PROHIBITED CARRIERS FROM SIGNALING PRICE ACTIONS THE WEEKEND FARE INCREASES ARE A WAY TO ACCOMPLISH THE SAME PURPOSE WITH LIMITED RISK EVEN IF COMPETITORS DON'T MATCH THE HIGHERPRICED CARRIERS WON'T LOSE MUCH BUSINESS OVER A WEEKEND AND CAN BACK DOWN ON MONDAY MORNING AIRLINES PUSHED UP ALL ADVANCEPURCHASE FARES 5 THE WEEKEND OF JULY 10 AND THOSE INCREASES STUCK THE FOLLOWING WEEKEND SAW FULLCOACH FARES RISE 5 THOSE INCREASES ALSO STUCK BUT LAST WEEKEND MANY CARRIERS RAISED ADVANCEPURCHASE PRICES 5 ONLY TO PULL BACK ON MONDAY BECAUSE SOME AIRLINES BALKED SO FLIERS WHO BOUGHT EXCURSION TICKETS ON SATURDAY OR SUNDAY PAID 5 MORE THAN IF THEY HAD BOUGHT THE SAME TICKETS ON THE FRIDAY BEFORE OR THE MONDAY AFTER OVER THE WEEKEND JOHN Q CONSUMER GOT SNUFFED SAYS TOM PARSONS EDITOR OF BEST FARES A TRADE PUBLICATION IN ARLINGTON TEXAS THERE'S MORE BAD NEWS FOR PASSENGERS WHO BUY ADVANCEPURCHASE TICKETS AT PHANTOM WEEKEND PRICES MANY AIRLINES RECENTLY INCREASED THE FEE THEY CHARGE TO REISSUE A TICKET AT A CHEAPER FARE LAST YEAR MOST AIRLINES BEGAN REISSUING ADVANCEPURCHASE TICKETS THEY HAD BEEN NONREFUNDABLE FOR A 25 CHARGE BUT IN RECENT WEEKS SEVERAL CARRIERS INCLUDING TRANS WORLD AIRLINES CONTINENTAL AIRLINES AND USAIR GROUP INC'S USAIR UNIT HAVE RAISED THE FEE TO 30 OR 35 THE AIRLINES SAY THE HIGHER CHARGE REFLECTS THE TRUE COSTS OF REISSUING THE TICKET BUT TRAVELERS SAY THEY DESERVE A BREAK WHEN CARRIERS ARE CHANGING FARES RAPIDLY IF A CUSTOMER FINDS OUT ABOUT A LOWER FARE SAYS DONALD PEVSNER A MIAMI TRAVEL LAWYER HE SHOULD BE ABLE TO GET A NEW TICKET FOR FREE WEEKEND PRICE INITIATIVES COULD BECOME ROUTINE BECAUSE AIRLINES NEED TO RAISE PRICES TO IMPROVE THEIR BALANCE SHEETS IN PARTICULAR FULL COACH FARES USED BY BUSINESS TRAVELERS ARE EXPECTED TO RISE AFTER THE SUMMER VACATION SEASON BUT CONSUMER ADVOCATES SAY WEEKEND PRICE MOVES ARE A PLOY TO AVOID UNFAVORABLE PUBLICITY EVERYONE IN THE TRAVEL INDUSTRY IS TRYING TO RAISE PRICES IN WHATEVER WAY WILL BE LEAST INTRUSIVE SAYS ED PERKINS EDITOR OF CONSUMER REPORTS TRAVEL LETTER PRICE INCREASES ON SATURDAY AND SUNDAY HE SAYS ARE LESS LIKELY TO RUN ON THE FRONT PAGE OF THE PAPER BECAUSE BUSINESS REPORTERS USUALLY DON'T WORK ON WEEKENDS THIS MONTH'S WEEKEND INITIATIVES HAVE BEEN LED BY CONTINENTAL AND UAL CORP'S UNITED AIRLINES INDUSTRY OFFICIALS SAY SEVERAL CARRIERS CALL THE PRACTICE LEGITIMATE IT'S FAIRLY WIDESPREAD THROUGHOUT THE INDUSTRY SAYS A SPOKESMAN FOR NORTHWEST A UNIT OF WINGS HOLDINGS INC OTHER AIRLINES BLAME THE PHANTOM FARE INCREASES ON THE JUSTICE DEPARTMENT MOST AIRLINES HAVE DENIED ANY COLLUSION BUT HAVE STOPPED SIGNALING FARE CHANGES THE WEEKEND INCREASES ARE THE INDUSTRY'S WAY OF OPERATING UNDER THE CONSTRAINTS OF THE CONSENT DECREE SAYS A SPOKESMAN FOR AMR CORP'S AMERICAN AIRLINES 9307300175 930730 TECHNOLOGY & HEALTH PURCHASING POOLS GO AFTER HEALTH COSTS EMPLOYERS INCREASINGLY LINK UP TO JUMPSTART REFORM BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE GROWING NUMBERS OF EMPLOYERS ARE POOLING THEIR BUYING POWER TO RESHAPE LOCAL HEALTHCARE MARKETS AMID NEW EVIDENCE THAT SUCH STRATEGIES ARE HELPING TO STANCH RISING HEALTH COSTS LEADERS OF THE NATIONAL BUSINESS COALITION ON HEALTH AN UMBRELLA ASSOCIATION FOR LOCAL EMPLOYER GROUPS REPORTED AT A MEETING HERE THIS WEEK THAT ABOUT 70 MEMBER ORGANIZATIONS NOW ARE ENGAGED IN COLLECTIVE PURCHASING AND QUALITY INITIATIVES IN COMMUNITIES AROUND THE US UP FROM 45 LESS THAN A YEAR AGO MORE THAN 4000 COMPANIES RANGING FROM MOMANDPOP BUSINESSES TO SUCH CORPORATE NAMEPLATES AS WALT DISNEY CO FEDERAL EXPRESS CORP AND BOEING CO BELONG TO COALITIONS WHICH ACCOUNT FOR MORE THAN 20 MILLION EMPLOYEES AND DEPENDENTS THE SURGE OF INTEREST COMES AS THE CLINTON ADMINISTRATION IS POISED TO EMBRACE COLLECTIVE PURCHASING AS A CORNERSTONE OF ITS WIDELY ANTICIPATED HEALTH REFORM PLAN BUT RATHER THAN FEELING COMFORTED COALITION LEADERS WORRY THAT THE HEALTH PURCHASING ALLIANCES ENVISIONED UNDER THE CLINTON PLAN COULD PUT MANY EMPLOYER GROUPS OUT OF BUSINESS WE ARE A BOOMING MOVEMENT YET WE COULD BE PUT AT RISK SAID SEAN SULLIVAN EXECUTIVE DIRECTOR OF THE NATIONAL ORGANIZATION IN WASHINGTON THE CONCERN REFLECTS AN EMERGING BATTLE BETWEEN MANY EMPLOYERS AND GOVERNMENT REFORMERS OVER HOW HEALTH CARE SHOULD BE PURCHASED IN THE CHANGING HEALTHCARE SYSTEM AND HOW PURCHASING STRATEGIES WILL INFLUENCE THE COST AND QUALITY OF CARE UNDER THE CLINTON PLAN HEALTH ALLIANCES WOULD BE ESTABLISHED IN REGIONS ACROSS THE US TO SOLICIT BIDS FROM HEALTH PLANS AND PROVIDE INFORMATION TO HELP CONSUMERS CHOOSE PLANS BASED ON COST AND QUALITY EMPLOYERS WOULD FOOT MUCH OF THE BILL FOR THEIR EMPLOYEES BUT THEY WOULDN'T PLAY A DIRECT ROLE IN STEERING EMPLOYEES TO SELECTED PLANS OR IN MONITORING THE QUALITY OF CARE BUSINESSES WITH MORE THAN 5000 EMPLOYEES WOULD BE EXEMPT UNDER THE CURRENT ADMINISTRATION PROPOSALS BUT THEY WOULD BE EXPECTED TO ACT AS CORPORATE ALLIANCES UNDER RULES SET UP FOR THE GOVERNMENTSANCTIONED PURCHASING GROUPS TO BE SURE COALITION LEADERS AND EMPLOYERS SUPPORT THE CLINTON HEALTH ALLIANCES AS A WAY TO EXTEND PURCHASING POWER TO CONSUMERS INCLUDING THE UNINSURED AND MEDICAID RECIPIENTS WHO LACK SUFFICIENT ACCESS TO HEALTH CARE BUT THEY MAINTAIN THAT SETTING UP AN EXCLUSIVE ALLIANCE IN EACH REGION AS THE CLINTON PROGRAM ENVISIONS WOULD STIFLE INITIATIVES THAT HAVE BEGUN TO PROVOKE PRICE AND QUALITY COMPETITION AMONG HOSPITALS DOCTORS AND HEALTH PLANS IN DOZENS OF US COMMUNITIES WE DON'T WANT TO BE SWEPT UP INTO PUBLICLY DESIGNATED PURCHASING BODIES SAID MR SULLIVAN MOREOVER THEY ARGUE THAT THE ALLIANCES WILL BE UNABLE TO FORGE THE KIND OF PARTNERSHIPS WITH HEALTH PROVIDERS THAT EMPLOYERS BELIEVE ARE CRUCIAL TO IMPROVE QUALITY AND ROOT OUT INEFFICIENT MEDICAL PRACTICES THAT INFLATE COSTS EMPLOYER COALITIONS LIKE DOCTORS INSURERS AND OTHER GROUPS ARE MOVING TO PROTECT THEIR INTERESTS AS THE NATION BRACES FOR SWEEPING CHANGES IN BOTH THE FINANCING AND DELIVERY OF HEALTH CARE SEVERAL GROUPS OFFERED NEW DATA THAT SUGGESTS THEIR PURCHASING STRATEGIES ALREADY ARE HELPING TO BRING ABOUT MARKETPLACE CHANGES THAT YIELD BENEFITS NOT ONLY FOR MEMBERS BUT FOR THEIR COMMUNITIES THESE ORGANIZATIONS ARE JUMPSTARTING HEALTH REFORM SAID RICHARD SHARPE OF THE JOHN A HARTFORD FOUNDATION A NEW YORK PHILANTHROPY THAT HAS PROVIDED FINANCIAL SUPPORT FOR A VARIETY OF COALITION ACTIVITIES IN ORLANDO FLA FOR INSTANCE THE 78MEMBER CENTRAL FLORIDA HEALTH CARE COALITION PERSUADED MOST OF THE REGION'S HOSPITALS INCLUDING THE TWO LARGEST TO USE THE SAME SOFTWARE SYSTEM TO ANALYZE DIFFERENCES IN COSTS AND QUALITY OF CARE PROVIDED TO PATIENTS WITH THE SAME ILLNESSES THE HOSPITALS AND THEIR DOCTORS ARE USING THE DATA TO IDENTIFY AND REDUCE THE USE OF TESTS AND PRACTICES THAT DON'T HELP PATIENTS AS A RESULT COSTS PER PATIENT ADMISSION FOR THE TWO MAJOR HOSPITALS FELL 2 IN EACH OF THE PAST TWO YEARS AFTER RISING SHARPLY IN PREVIOUS YEARS SAID MARILYN BELL EXECUTIVE DIRECTOR OF THE COALITION DEATH AND COMPLICATION RATES IMPROVED ACROSS A VARIETY OF PROCEDURES ONE HOSPITAL SHARPLY CURTAILED THE USE OF LAB TESTS PHYSICAL THERAPY RADIOLOGY AND OTHER SERVICES AND ROLLED BACK PRICES FOR DELIVERING BABIES BY 10 SAVINGS FOR PURCHASERS ENABLED THE ORANGE COUNTY SCHOOL BOARD A COALITION MEMBER TO KEEP 20 TEACHING JOBS IT PLANNED TO CUT TO MEET ITS BUDGET IN MEMPHIS A FIVEYEAR RELATIONSHIP BETWEEN THE 50MEMBER MEMPHIS BUSINESS GROUP ON HEALTH AND BAPTIST HOSPITAL HAS HELPED BRING ABOUT SIMILAR GAINS IN COST AND QUALITY IT ALSO HAS ENABLED THE COALITION'S OLDEST MEMBERS TO HOLD HEALTH COST INCREASES TO AN ANNUAL AVERAGE OF 6 OVER THE PAST FIVE YEARS THE NATIONAL AVERAGE ACCORDING TO BENEFIT CONSULTANT A FOSTER HIGGINS WAS NEARLY 15 A YEAR OVER THE SAME PERIOD NOW THE HOSPITAL AND THE BUSINESS GROUP ARE PLANNING A JOINT EFFORT TO OFFER HEALTH SERVICES TO COMPANIES WITH UNDER 100 EMPLOYEES AT THE PRICES PAID BY COALITION MEMBERS ONCE A HOSPITAL LEARNS TO PRACTICE COSTEFFECTIVE CARE THAT CARE IS AVAILABLE NOT JUST TO COALITION MEMBERS BUT TO THE ENTIRE COMMUNITY SAID DONNA MILLER CHIEF EXECUTIVE OF THE BUSINESS GROUP 9307300174 930730 LAWYERS TITLE ACQUIRES FIRMS RICHMOND VA LAWYERS TITLE CORP SAID IT ACQUIRED TWO TEXAS TITLE INSURANCE COMPANIES CHARTER TITLE CO HOUSTON AND CHARTER TITLE COFORT BEND FORT BEND COUNTY TEXAS TERMS WEREN'T DISCLOSED LAWYERS TITLE PROVIDES TITLE INSURANCE SERVICES TO RESIDENTIAL AND COMMERCIAL CUSTOMERS 9307300173 930730 MIDWEST GRAIN PLANT PRODUCTION ATCHISON KAN MIDWEST GRAIN PRODUCTS INC RESUMED PRODUCTION AT ITS PLANT HERE RETURNING TO THEIR JOBS ABOUT 100 WORKERS WHO HAD BEEN LAID OFF AFTER MISSOURI RIVER FLOODING FORCED A SHUTDOWN SUNDAY SANDBAGS SUMP PUMPS AND ELECTRICAL GENERATORS HELPED REVIVE A COOLING WATER PUMPING STATION NECESSARY FOR THE PLANT'S DISTILLERY PROCESS THE PUMPING STATION WAS FLOODED AFTER A LEVEE BROKE THE PRODUCER OF WHEAT AND GRAIN PRODUCTS SAID 9307300172 930730 CORNING BUYS 9 STAKE IN MDL CORNING NY CORNING INC SAID IT PAID ABOUT 81 MILLION FOR A 9 STAKE IN MDL INFORMATION SYSTEMS INC A SAN LEANDRO CALIF SUPPLIER OF CHEMICAL INFORMATIONMANAGEMENT SOFTWARE AND DATABASES TO THE PHARMACEUTICAL AND CHEMICAL INDUSTRIES CORNING A SPECIALTY MATERIALS OPTICAL FIBER AND HOUSEWARES CONCERN SAID THE MOVE EXPANDS ITS INTERESTS IN THE SCIENTIFIC INFORMATION FIELD MDL COMPLETED ITS INITIAL PUBLIC OFFERING YESTERDAY 9307300171 930730 WHO'S NEWS DIGITAL EQUIPMENT'S JOHNSON RESIGNS POST MAYNARD MASS DIGITAL EQUIPMENT CORP SAID THAT WILLIAM R JOHNSON VICE PRESIDENT CORPORATE MARKETING RESIGNED TO PURSUE OTHER INTERESTS MR JOHNSON WHO RAN DIGITAL'S FASTGROWING NETWORKING BUSINESS DURING THE COMPANY'S BOOM YEARS FROM 1985 TO 1991 WAS PROMOTED BY KENNETH H OLSEN FOUNDER AND FORMER PRESIDENT TO OVERSEE ALL MARKETING IN 1991 THAT ROLE WAS CEDED IN APRIL TO EDWARD LUCENTE WHO WAS HIRED BY MR OLSEN'S SUCCESSOR ROBERT B PALMER TO HEAD SALES AND MARKETING MR JOHNSON 51 YEARS OLD WORKED FOR DIGITAL FOR 20 YEARS AND ROSE TO ITS HIGHEST RANKS HE SAID HE PLANS TO SEEK ANOTHER SENIOR POSITION PROBABLY IN THE COMPUTER NETWORKING INDUSTRY 9307300170 930730 WHO'S NEWS TRW INC TRW INC CLEVELAND JAMES T LYNN 66 YEARS OLD A SENIOR ADVISER AT INVESTMENT BANKING FIRM LAZARD FRERES & CO AND RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF AETNA LIFE & CASUALTY CO WAS ELECTED A DIRECTOR OF THIS AUTOMOTIVE INFORMATION AND AEROSPACE CONCERN HE FILLS A VACANCY CREATED BY P ROY VAGELOS THE CHAIRMAN AND CHIEF EXECUTIVE OF MERCK & CO WHO DIDN'T STAND FOR REELECTION TO THE BOARD ON APRIL 28 THE BOARD SIZE STANDS AT 13 MEMBERS 9307300169 930730 TECHNOLOGY & HEALTH MEDCO'S SALE HOLDS FEE OF 60 MILLION FOR CHIEF WYGOD BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN WYGOD CHAIRMAN OF MEDCO CONTAINMENT SERVICES INC STANDS TO COLLECT A 60 MILLION FEE IN CONNECTION WITH THE PENDING SALE OF MEDCO TO MERCK & CO THAT WOULD BE ONE OF THE BIGGEST NONUNDERWRITING FEES OF ALL TIME ASSOCIATED WITH A CORPORATE TAKEOVER THE ONLY LARGER SUCH FEE ON RECORD ACCORDING TO SECURITIES DATA CO IS THE 75 MILLION THAT KOHLBERG KRAVIS ROBERTS & CO COLLECTED IN 1989 FOR ADVISING ITSELF ON HOW TO BUY RJR NABISCO INC MEDCO ASSERTED THAT MR WYGOD'S FEE SHOULDN'T COME AS ANY SURPRISE TO SHAREHOLDERS IN THE MONTVALE NJ PHARMACYBENEFITS COMPANY IT SAID THE FORMULA FOR MR WYGOD'S FEE HAS BEEN DISCLOSED IN MEDCO'S PROXY STATEMENT TO SHAREHOLDERS FOR YEARS AS SPELLED OUT IN MEDCO'S NOVEMBER 1992 PROXY MR WYGOD IS ENTITLED TO COLLECT 1 OF THE PROCEEDS FROM A SALE OF MEDCO EARLIER THIS WEEK MERCK AGREED TO BUY MEDCO FOR 6 BILLION NONETHELESS MR WYGOD'S WINDFALL IS LIKELY TO MAKE HEADS TURN BOTH IN THE PHARMACEUTICAL INDUSTRY AND ON WALL STREET WHILE SEVERAL TOP MERCK EXECUTIVES COLLECT ANNUAL SALARIES AND BONUSES OF 1 MILLION OR MORE AND WHILE MERCK'S CHAIRMAN ROY VAGELOS OWNS OR HAS OPTIONS ON MORE THAN 10 MILLION OF MERCK STOCK NO ONE AT MERCK IS BELIEVED TO HAVE INDIVIDUAL WEALTH APPROACHING MR WYGOD'S FEE ALONE EXPLAINING MR WYGOD'S FEE MEDCO'S CHIEF FINANCIAL OFFICER JAMES MANNING SAID IT WAS APPROVED BY THE MEDCO BOARD AS A WAY TO RECOGNIZE THE TREMENDOUS INCREASE IN VALUE HE HAD CREATED FOR SHAREHOLDERS MR MANNING ALSO SAID THE DISPOSITION FEE WAS IMPLEMENTED A FEW YEARS AGO WHEN MR WYGOD GAVE UP A SYSTEM OF INCENTIVE PAY TIED TO MEDCO'S INCREASES IN SALES AND PROFITS MEDCO STOCK HAS SOARED MORE THAN TWENTYFOLD SINCE THE EARLY 1980S WHEN MR WYGOD TOOK OVER AS CHAIRMAN THE COMPANY ALSO HAS EXPANDED FROM A HANDFUL OF MAILORDER PHARMACY ACCOUNTS TO BECOME THE BIGGEST MANAGEDCARE PHARMACY COMPANY IN THE US WITH ANNUAL REVENUE OF MORE THAN 25 BILLION WHEN THE MERCKMEDCO TRANSACTION WAS ANNOUNCED WEDNESDAY MR WYGOD SAID HE WOULD INVEST 32 MILLION OF HIS OWN MONEY IN MERCK STOCK MR MANNING SAID THAT THIS AMOUNT REPRESENTS MR WYGOD'S AFTERTAX PROCEEDS FROM HIS 60 MILLION FEE AT LEAST TWO OTHER MEDCO EXECUTIVES ALSO WILL COLLECT DISPOSITION FEES ACCORDING TO THE MEDCO PROXY THE NEXT LARGEST FEE OF 025 OF THE TAKEOVER VALUE OR 15 MILLION STANDS TO GO TO MR MANNING 9307300168 930730 COCACOLA VENTURE IN CHINA HONG KONG COCACOLA CO SAID IT IS UNDERTAKING A SECOND VENTURE WITH ROBERT KUOK'S KERRY GROUP IN CHINA THE VENTURE INVOLVES A 25 MILLION COKE INVESTMENT IN A BOTTLING PLANT IN CHONGQING IN THE PROVINCE OF SICHUAN THE CHONGQING PLANT WILL BE 60 OWNED BY KERRY BEVERAGES A JOINT VENTURE BETWEEN THE KERRY GROUP AND A SUBSIDIARY OF ATLANTABASED COCACOLA WITH THE REST OWNED BY ONE OF CHINA'S LARGEST SOFTDRINK COMPANIES TIANFU HOLDINGS CO 9307300167 930730 AMERICAN EXPRESS CO PLANS OFFERING OF DEBT EXCHANGEABLE FOR STOCK NEW YORK AMERICAN EXPRESS CO PROPOSED AN INVESTMENT WRINKLE THAT HELPS TAP THE VALUE OF ITS 850 MILLION HOLDING IN FIRST DATA CORP WHILE POTENTIALLY GENERATING FURTHER RETURNS ON THE INVESTMENT THE TRAVEL AND FINANCIAL SERVICES COMPANY SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL THREEYEAR NOTES EXCHANGEABLE INTO 20 MILLION SHARES OF FIRST DATA AMERICAN EXPRESS TOOK THIS CREDIT CARD AND HIGHVOLUME PROCESSING COMPANY PUBLIC LAST YEAR AND OWNS A 20 STAKE THE OFFERING IS THE LATEST IN A SERIES OF FINANCING VEHICLES DEVISED BY SALOMON BROTHERS INC A UNIT OF SALOMON INC THE NOTES ARE CALLED DECS OR DEBT EXCHANGEABLE FOR COMMON STOCK IT ESSENTIALLY GIVES AMERICAN EXPRESS A FLOOR PRICE FOR ITS REMAINING 236 MILLION SHARES OF FIRST DATA WHILE LETTING THE COMPANY SHARE IN ANY PRICE APPRECIATION IN NEW YORK STOCK EXCHANGE TRADING FIRST DATA SHARES CLOSED AT 3625 DOWN 50 CENTS WHILE TERMS OF THE VEHICLE WILL BE SET AT THE TIME OF OFFERING COMPANY OFFICIALS SAID THE PRICE AT WHICH THE DECS CAN BE EXCHANGED WILL BE SET AT A PREMIUM OVER THE CURRENT MARKET PRICE AT MATURITY AMERICAN EXPRESS WILL APPLY A FORMULA TO DETERMINE HOW MUCH A NOTE HOLDER WILL RECEIVE WITH THE RATIO TO BE SET AT THE TIME OF THE OFFERING IF FIRST DATA STOCK IS TRADING AT LESS THAN OR EQUAL TO THE PRICE PAID FOR A SECURITY THE OWNER WILL RECEIVE ONE FIRST DATA SHARE IF FIRST DATA IS TRADING AT A PRICE BETWEEN THE DECS' INITIAL OFFERING PRICE AND THE CONVERSION PRICE THE INVESTOR WILL RECEIVE FIRST DATA STOCK EQUAL TO THE OFFERING PRICE AND IF FIRST DATA IS TRADING ABOVE THE CONVERSION PRICE THE INVESTOR WILL RECEIVE PART OF THE APPRECIATION AND AMERICAN EXPRESS WILL RECEIVE PART 9307300166 930730 ASARCO SELLS STAKE IN UNIT NEW YORK ASARCO INC SAID IT SOLD 99 OF THE SHARES OF ITS ASARCO AUSTRALIA LTD GOLDMINING UNIT TO THE PUBLIC FOR 138 MILLION PROCEEDS WILL BE USED TO REDUCE DEBT THE COMPANY SAID IT WILL RECORD A 10 MILLION PRETAX GAIN ON THE SALE THE SALE WILL LEAVE ASARCO WITH 498 OF THE UNIT WHICH PRODUCED ABOUT 110000 OUNCES OF GOLD OUT OF WESTERN AUSTRALIA MINES IN 1992 ASARCO SAID THE SALE IS IN STEP WITH ITS GOAL OF REDUCING THE COMPANY'S DEBT TO 25 OF CAPITALIZATION AT THE END OF THE SECOND QUARTER DEBT WAS ABOUT 419 OF TOTAL CAPITAL 9307300165 930730 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AGCO CORP A SECONDARY OFFERING OF 15 MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO AND DILLON READ & CO SAN DIEGO GAS & ELECTRIC CO A SHELF OFFERING OF UP TO FIVE MILLION SHARES OF PREFERENCE STOCK TRICORD SYSTEMS INC AN OFFERING OF 275 MILLION COMMON SHARES VIA SMITH BARNEY & CO ROBERTSON STEPHENS & CO AND DAIN BOSWORTH INC 9307300164 930730 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN STEEL PRODUCTION TOTALED 281509 METRIC TONS IN THE WEEK ENDED SATURDAY UP 18 FROM 276647 TONS IN THE PRECEDING WEEK AND UP 32 FROM 213895 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS THE CUMULATIVE TOTAL FOR 1993 IS 8075475 TONS UP 5 FROM 7692855 IN 1992 9307300163 930730 INTERNATIONAL ITALY TO CONTINUE PROBE OF ANDREOTTI ALLEGATIONS ROME ITALY'S SENATE VOTED TO WAIVE THE PARLIAMENTARY IMMUNITY OF FORMER PRIME MINISTER GIULIO ANDREOTTI ALLOWING MAGISTRATES IN ROME TO CONTINUE TO INVESTIGATE ALLEGATIONS THAT HE COLLABORATED WITH AT LEAST FIVE MAFIA BOSSES IN THE PREMEDITATED MURDER OF A JOURNALIST 14 YEARS AGO MR ANDREOTTI WHO HELD THE PREMIERSHIP SEVEN TIMES WAS ALREADY BEING INVESTIGATED FOR ALLEGED LINKS TO THE SICILIAN MAFIA THE SENATE WAIVED HIS IMMUNITY ON THAT CASE IN MAY IMMUNITY OF MEMBERS OF PARLIAMENT MUST BE WAIVED ON EACH ACCUSATION BEFORE INVESTIGATIONS CAN CONTINUE THE 74YEAROLD SENATORFORLIFE WAS ACCUSED BY MAFIA DEFECTORS OF HAVING BEEN THE SICILIAN MAFIA'S MAIN REFERENCE POINT IN ROME FOR DECADES AND OF ORDERING THE 1979 SHOOTING OF JOURNALIST MINO PECORELLI MR ANDREOTTI HAS DENIED ALL THE ACCUSATIONS BUT ASKED THAT HIS IMMUNITY BE LIFTED SO THE TRUTH COULD BE ASCERTAINED ACCORDING TO TESTIMONY FROM MAFIA DEFECTORS MR PECORELLI ALLEGEDLY HAD UNCOVERED INFORMATION ABOUT THE MURDER OF FORMER PRIME MINISTER ALDO MORO BY RED BRIGADES TERRORISTS IN 1978 9307300162 930730 LESLIE FAY GETS COURT RULING NEW YORK LESLIE FAY COS SAID THAT THE US BANKRUPTCY COURT IN MANHATTAN GRANTED AN 120DAY EXTENSION OF THE EXCLUSIVITY PERIOD GIVING THE COMPANY'S EXISTING MANAGEMENT UNTIL DEC 3 TO FILE A REORGANIZATION PLAN THE WOMEN'S APPAREL COMPANY WHICH FILED FOR CHAPTER 11 PROTECTION LAST MARCH SAID THAT IT EXPECTS TO ISSUE ITS RESTATED FINANCIAL STATEMENTS FOR 1991 AND 1992 BY THE END OF AUGUST LESLIE FAY ALSO SAID THAT THE INITIAL PHASE OF ITS INVESTIGATION INTO ALLEGED ACCOUNTING IRREGULARITIES WILL BE CONCLUDED WITHIN SEVERAL WEEKS 9307300161 930730 LEISURE & ARTS SAVOY REOPENS WITH PIROUETTES & PAWNS BY PAUL LEVY MIND YOU THE SAVOY NAME IS PRETTY RESONANT ATTACHED TO THE SAVOY HOTEL AND ONLY A FEW STEPS FROM THE ANCIENT ROYALTY FREQUENTED SAVOY CHAPEL THE THEATER OCCUPIES ITS OWN CHUNK OF HISTORY AS THE VENUE FOR GILBERT & SULLIVAN'S SAVOY OPERAS FROM PATIENCE TO THE GONDOLIERS THESE ARE IN TURN COMMEMORATED IN THE NAMES OF THE PRIVATE ROOMS OF THE SAVOY HOTEL WHERE A LUNCHEON CLUB FOR THE BRITISH ESTABLISHMENT THE OTHER CLUB AS OPPOSED TO THE HOUSE OF COMMONS WAS FOUNDED IN 1911 BY THE THEN OUTOFOFFICE WINSTON CHURCHILL AND FE SMITH AS LORD BIRKENHEAD THEN WAS AND STILL MEETS EVERY MONTH IN THE PINAFORE ROOM THE THEATER WAS BUILT FIRST IN 1881 THE ONLY ONE IN THE WORLD TO BE LIT BY ELECTRICITY AND THUS IN WHICH THE AUDITORIUM COULD BE DARKENED COMPLETELY IN FACT IT WAS RICHARD D'OYLY CARTE THE IMPRESARIO OF THE GILBERT & SULLIVAN OPERAS WHO HAD THE GRAND VISION OF BUILDING THE SAVOY COMPLEX CHIEFLY ON THE PROCEEDS OF THE MIKADO HE HAD THE VISION OF A GRAND HOTEL ON THE SIGHT OF THE MEDIEVAL SAVOY PALACE AND OPENED HIS HOTEL ONE OF THE FIRST TO HAVE ELEVATORS BATHROOMS FOR MOST OF THE GUESTS A KITCHEN CLOSE TO THE RESTAURANT AND ON THE SAME FLOOR AND ELECTRICITY INSTEAD OF GAS IN AUGUST 1889 BUT IT WAS NOT A SUCCESS UNTIL DECEMBER WHEN CESAR RITZ TOOK OVER THE MANAGEMENT AND BROUGHT AUGUSTE ESCOFFIER WITH HIM AS CHEF LONGSUPPRESSED THE STORY OF HOW LESS THAN NINE YEARS LATER RITZ AND ESCOFFIER WERE FIRED FOR BEING ON THE TAKE WAS FIRST TOLD BY ME IN THESE PAGES IN 1986 AMUSINGLY ENOUGH SIR ARTHUR SULLIVAN WAS A MEMBER OF THE SAVOY'S COMMITTEE OF INVESTIGATION THAT OBLIGED RITZ AND ESCOFFIER TO CONFESS AS HE WAS A VICTORIAN GENTLEMAN IT NEVER OCCURRED TO SULLIVAN THAT THE SCANDAL WOULD HAVE MADE A TERRIFIC PLOT FOR A SAVOY OPERA THE SAVOY THEATRE THAT WAS DESTROYED BY FIRE THREE YEARS AGO WAS THE THIRD ONE ON THE SITE AND THE PRESENT ONE IS A SCRUPULOUS RESTORATION OF THE 1929 BASIL IONIDES ARTDECO VERSION BUT WITH THE ADDITION OF 300 SEATS THIS SHOULD MAKE THE THEATER ABLE TO ACCOMMODATE MUSICALS AND IN TURN MAKE THE ENTERPRISE ECONOMICALLY VIABLE THERE HAD BEEN SOME TALK EARLIER OF CHANGING THE INTERIOR OF THE BUILDING AND CONSTRUCTING A THEATER FOR THE 1990S BUT THE PROVISIONS OF THE INSURANCE COVERING THE FIRE DAMAGE PUT AN END TO THAT SO THE SAVOY THEATRE OPENED LAST WEEK LOOKING EXACTLY AS IT DID WHEN IT OPENED IN ITS THIRD INCARNATION ON OCT 21 1929 THEN WITH A REVIVAL OF THE GONDOLIERS DESIGNED BY CHARLES RICKETTS AND CONDUCTED BY MALCOLM SARGENT THE WALLS AGAIN GLITTERED WITH ALUMINUM FOIL RISING TO A CEILING PAINTED TO REPRESENT A CLEAR APRIL SKY ONE DIFFERENCE IS THAT THE SEATS ARE NOW THE MOST COMFORTABLE IN ANY LONDON THEATER THEY ARE STILL UPHOLSTERED IN DIFFERENT COLORS BUT PATRONS ARE NO LONGER INFORMED WHEN THEY RECEIVE THEIR TICKETS OF THE HUE OF THEIR SEAT SO AS TO ALLOW THE LADIES TO DRESS ACCORDINGLY WHEN THE PROGRAM FOR THIS MONTH'S OPENING A ROYAL GALA GIVEN BY THE ENGLISH NATIONAL BALLET TO BE ATTENDED BY THE PRINCESS OF WALES WAS ANNOUNCED THERE WAS A FLURRY OF CORRESPONDENCE IN THE LETTERS COLUMNS OF THE BROADSHEET NEWSPAPERS WHY DEMANDED THE PROVERBIAL DISGUSTED OF TUNBRIDGE WELLS WAS THE SAVOY NOT REOPENING WITH A GILBERT & SULLIVAN OPERA THE SAD TRUTH IS THAT THE ARTISTIC STANDARDS OF THE D'OYLY CARTE COMPANY ARE NOT WHAT THEY WERE AND THAT SINCE THE OPERAS HAVE RECENTLY GONE OUT OF COPYRIGHT THE GILBERT & SULLIVAN TORCH HAS PASSED TO THE ENGLISH NATIONAL OPERA WITH ITS IMAGINATIVE IF NOT ALWAYS POPULAR PRODUCTIONS SUCH AS JONATHAN MILLER'S WONDERFUL MIKADO AND KEN RUSSELL'S OUTLANDISH PRINCESS IDA INSTEAD BUT VERY APPROPRIATELY THE ENGLISH NATIONAL BALLET COMMISSIONED WAYNE SLEEP THE HEIGHTCHALLENGED DANCER WHO IS STILL AT 45 ONE OF THE GREAT CHARACTER DANCERS OF OUR ERA TO CHOREOGRAPH AND STAR IN A PIECE D'OCCASION HE'S CALLED SAVOY SUITE CARL DAVIS'S MUSIC INGENIOUSLY QUOTES A REDISCOVERED EARLY SULLIVAN BALLET L'ILE ENCHANTEE ALONG WITH SNATCHES OF MORE FAMILIAR G&S TUNES AND MR SLEEP HAS CREATED A WITTY BALLET THAT BEGINS WITH THE DANCERS WEARING FLUORESCENT COSTUMES AND SPELLING OUT THE TITLE BY ASSUMING ODD POSTURES ON THE WHOLE THE CHOREOGRAPHY CALLS FOR CONVENTIONAL HIGHLY ATHLETIC CLASSICAL BALLET BUT WITH LOTS OF JAZZDANCE TRICK STEPS A PUGNACIOUS TAP DUEL BETWEEN MR SLEEP AS GILBERT AND THE VERY TALL SIMON COOPER AS SULLIVAN AND PLENTY OF THE WHIRLING PIROUETTES AT WHICH MR SLEEP EXCELS THE CRITICAL CONSENSUS HERE IS THAT HE'S CREATED A PIECE THAT WILL REMAIN IN THE REPERTORY NO MEAN FEAT THE TIMES OF LONDON HERALDED IT THE NEXT DAY IN AN EDITORIAL WRITTEN ENTIRELY IN GILBERTIAN VERSE AFTER LAST SATURDAY WHEN THE BRIEF RUN ENDED THE THEATER AND THE BALLET COMPANY EACH WENT THEIR OWN WAY THE NEXT SHOW SCHEDULED FOR THE SAVOY THEATRE IS THE SHORTKASPAROV CHESS MATCH FROM SEPT 7OCT 30 WHILE THE ENGLISH NATIONAL BALLET HAS MOVED OVER TO THE ROYAL FESTIVAL HALL UNTIL AUG 7 THE BALLET COMPANY HAS A PROBLEM ITS NEW DIRECTOR DEREK DEANE IS HAVING TO REDEFINE THE COMPANY'S MISSION ORIGINALLY ENB WAS ESTABLISHED TO PROVIDE STARSPANGLED POPULAR ENTERTAINMENT FOR AUDIENCES ALIENATED BY THE POSHNESS OF THE ROYAL BALLET PRESIDED OVER BY THE AMERICANBORN CHAIRMAN PAMELA LADY HARLECH WHOSE LACQUERED BLACK WINGLIKE COIFFURE HAS ENGAGED THE ATTENTIONS OF THE BRITISH PRESS FOR THE PAST TWO WEEKS ENB HAS TO FIND A WAY OF BALANCING USERFRIENDLY PRODUCTIONS WITH SOME SLIGHTLY MORE DARING ONES IF IT IS TO CREATE AN AUDIENCE OF ITS OWN MEANWHILE THE PRINCESS OF WALES REMAINS ITS PATRON WHICH WILL AT LEAST ENSURE A GOOD TURNOUT FOR SPECIAL OCCASIONS 9307300160 930730 WHO'S NEWS MACY IS CONSIDERING FARAH OF FEDERATED AS CHIEF MERCHANT NEW YORK RH MACY & CO WHICH HAD ANNOUNCED IT WOULD NAME A NEW CHIEF MERCHANT THIS SUMMER IS SAID TO BE NEGOTIATING WITH ROGER H FARAH AN EXECUTIVE AT FEDERATED DEPARTMENT STORES INC ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION INDIVIDUALS CLOSE TO MACY'S SAY COMPANY OFFICIALS HAVE NARROWED THEIR CHOICE TO THE 40YEAROLD MR FARAH BUT HE HASN'T BEEN OFFERED A JOB YET MACY'S HAS BEEN WITHOUT A CHIEF MERCHANT THE CHIEF REPRESENTATIVE TO THE VENDORS SINCE THE MAY 13 RETIREMENT OF MARK S HANDLER MR HANDLER WAS FORMERLY MACY'S COCHAIRMAN AND COCHIEF EXECUTIVE OFFICER A JOB HE SHARED WITH MYRON ULLMAN WHO CONTINUES IN THOSE POSITIONS THE REPORTS ABOUT MR FARAH APPEARED YESTERDAY IN WOMEN'S WEAR DAILY MACY'S DECLINED TO COMMENT AND MR FARAH WHO IS ON VACATION COULDN'T BE REACHED FOR COMMENT SINCE JULY 1991 MR FARAH HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEW YORKBASED FEDERATED MERCHANDISING WHICH IS RESPONSIBLE FOR DEVELOPING AND IMPLEMENTING FEDERATED'S MERCHANDISE STRATEGIES FOR ITS DEPARTMENT STORES WHICH INCLUDE ABRAHAM & STRAUS BLOOMINGDALE'S AND RICH'S HE JOINED FEDERATED IN 1987 TO BECOME PRESIDENT OF RICH'S EARLIER THIS WEEK MACY'S APPOINTED TWO OTHER SENIOR EXECUTIVES MICHAEL STEINBERG 65 WHO WAS FORMERLY PRESIDENT OF MAY DEPARTMENT STORES CO'S FOLEY'S DIVISION IN HOUSTON WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MACY'S WEST DIVISION CONSISTING OF 51 MACY'S AND BULLOCK'S DEPARTMENT STORES MR STEINBERG FILLED A VACANCY LEFT BY DANIEL B FINKELSTEIN WHO RESIGNED IN JANUARY 9307300159 930730 TECHNOLOGY WANG LABORATORIES POSTS NARROWED LOSS FOR FISCAL 4TH PERIOD LOWELL MASS WANG LABORATORIES INC SAYING IT MAY EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS THIS FALL REPORTED A NARROWED FISCAL FOURTH QUARTER LOSS AS RESTRUCTURING CHARGES LESSENED FOR THE FOURTH QUARTER ENDED JUNE 30 THE COMPANY HAD A LOSS OF 438 MILLION OR 25 CENTS A SHARE AFTER RESTRUCTURING AND OTHER CHARGES TOTALING 371 MILLION THE YEAREARLIER QUARTER'S LOSS WAS 3337 MILLION OR 196 A SHARE INCLUDING RESTRUCTURING CHARGES OF 3067 MILLION EXCLUDING RESTRUCTURING AND OTHER CHARGES WANG'S FOURTHQUARTER OPERATING LOSS WAS 104 MILLION COMPARED WITH A YEAREARLIER OPERATING LOSS OF 342 MILLION REVENUE DROPPED ABOUT 49 TO 241 MILLION FROM 4736 MILLION WANG SAID ITS FOURTHQUARTER MARGINS IMPROVED SLIGHTLY COMPARED WITH THE YEAREARLIER FOURTH QUARTER AND THE FISCAL 1993 THIRD QUARTER THE COMPANY ADDED THAT IT HAS MADE SIGNIFICANT PROGRESS TOWARD ITS GOAL OF EMERGING FROM BANKRUPTCY PROCEEDINGS AS A SMALLER COMPANY FOCUSED ON SOFTWARE AND SERVICES WANG SAID IT EXPECTS TO EMERGE FROM BANKRUPTCY PROCEEDINGS WITH REVENUE OF ABOUT 955 MILLION AND OPERATING PROFIT OF ABOUT 53 MILLION FOR THE 12MONTH PERIOD BEGINNING OCT 1 FOR FISCAL 1993 WANG POSTED A LOSS OF 1972 MILLION OR 115 A SHARE INCLUDING RESTRUCTURING CHARGES OF 922 MILLION AND OTHER REORGANIZATION CHARGES OF 351 MILLION OFFSET BY GAINS OF 252 MILLION IN FISCAL 1992 THE COMPANY HAD A LOSS OF 3566 MILLION OR 210 A SHARE INCLUDING RESTRUCTURING CHARGES OF 2773 MILLION OFFSET BY GAINS OF 33 MILLION 9307300158 930730 CANADA AGENCY AFFIRMS PUNITIVE DUTY ON LOWPRICED STEEL GOODS OF 5 NATIONS BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN INTERNATIONAL TRADE TRIBUNAL UPHELD A CANADIAN GOVERNMENT RULING THAT IMPOSED PUNITIVE DUTIES ON SOME IMPORTS OF LOWPRICED COLDROLLED STEEL PRODUCTS FROM THE US AND FOUR OTHER COUNTRIES THE AGENCY SAID IMPORTS OF THE SHEET STEEL FROM THE US GERMANY FRANCE ITALY AND BRITAIN INJURED CANADIAN STEEL PRODUCERS THROUGH DUMPING OR SELLING A PRODUCT IN A FOREIGN MARKET AT A PRICE LOWER THAN THE DOMESTIC PRICE COLDROLLED SHEET STEEL IS USED TO MAKE HOUSEHOLD APPLIANCES AUTO PARTS OFFICE FURNITURE AND OTHER PRODUCTS THE TRIBUNAL'S RULING WAS A VICTORY FOR CANADIAN STEEL PRODUCERS WHO LOST TWO PREVIOUS BIDS TO IMPOSE RETALIATORY LEVIES ON US STEELMAKERS THE TRADE TRIBUNAL THIS YEAR CLEARED US STEEL COMPANIES OF DUMPING CHARGES INVOLVING TWO OTHER STEEL PRODUCTS CARBON STEEL PLATE AND HOTROLLED CARBON STEEL SHEET THIS FINDING SUPPORTS EVERYTHING WE HAVE BEEN SAYING THROUGHOUT ALL OF THESE TRADE DISPUTES SAID JOHN MAYBERRY PRESIDENT AND CHIEF EXECUTIVE OF DOFASCO INC HAMILTON ONTARIO DOFASCO IS ONE OF THE COMPANIES THAT INITIATED THE COMPLAINT THE CANADIAN STEEL INDUSTRY IN A TITFORTAT MOVE INITIATED THE ANTIDUMPING ACTIONS LAST YEAR AFTER US STEEL PRODUCERS FILED UNFAIR TRADE COMPLAINTS AGAINST STEELMAKERS IN CANADA AND 19 OTHER COUNTRIES THIS WEEK THE US INTERNATIONAL TRADE COMMISSION CLEARED CANADIAN STEEL PRODUCERS OF SOME DUMPING CHARGES WHILE IT UPHELD OTHERS THE US RULING ALONG WITH A DECISION BY THE CANADIAN TRIBUNAL MAY MAKE THE US MORE WILLING TO CONSIDER STEELTRADE PACTS WITH CANADA AND OTHER COUNTRIES SAID JAY GORDON A STEEL ANALYST WITH CREDIFINANCE SECURITIES LTD OF TORONTO THE CANADIAN STEEL INDUSTRY AND THE CANADIAN GOVERNMENT HAVE LONG SOUGHT SUCH A PACT CANADIAN TRADE MINISTER TOM HOCKIN IS EXPECTED TO RAISE THE ISSUE THIS WEEK WITH US TRADE REPRESENTATIVE MICKEY KANTOR THE TWO ARE MEETING IN WASHINGTON TODAY WITH MEXICAN TRADE SECRETARY JAIME SERRA PUCHE ON THE ENVIRONMENTAL AND LABOR SIDE ACCORDS TO THE NORTH AMERICAN FREETRADE PACT AS A RESULT OF YESTERDAY'S RULING DUTIES OF AS MUCH AS 873 WILL BE IMPOSED ON STEEL IMPORTS FROM THE FIVE COUNTRIES THE US HAS ACCOUNTED FOR ABOUT THREEQUARTERS OF CANADA'S IMPORTS OF COLDROLLED SHEET WHICH IN RECENT YEARS HAVE TOTALED ALMOST 200000 TONS 9307300157 930730 MARKETING & MEDIA SEARS WELCOMES MAJOR CREDIT CARDS AFTER YEARS OF ACCEPTING ONLY ITS OWN BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO BOWING BELATEDLY TO CONSUMER WISHES IS DISCARDING ITS LONGTIME PRACTICE AGAINST ACCEPTING MAJOR BANK CARDS EFFECTIVE SUNDAY THE RETAIL GIANT'S CUSTOMERS WILL BE ABLE TO USE VISA MASTERCARD AND AMERICAN EXPRESS CARDS IN ALL 1800 SEARS OUTLETS THE EXTRA CONVENIENCE ONE SEARS HAD PREVIOUSLY BEEN UNWILLING TO EXTEND MEANS THAT WE WILL BE WELCOMING A LARGE NUMBER OF NEW CUSTOMERS TO OUR STORES THE COMPANY SAID SEARS WAS A PIONEER EARLY THIS CENTURY IN INTRODUCING INSTALLMENT CREDIT FOR USE BY ITS THEN LARGELY RURAL CLIENTELE BUT IN RECENT YEARS IT HAS BECOME THE LAST BIG MERCHANDISER TO SPURN OUTSIDE BANK CARDS INSTEAD IT SOUGHT TO MAXIMIZE PROFITS BY FORCING CREDIT CUSTOMERS TO USE EITHER THE SEARS CREDIT CARD OR THE DISCOVER CARD WHICH UNTIL LAST MONTH WAS OWNED BY A SEARS UNIT THAT POLICY ALIENATED MANY CONSUMERS WHO PERCEIVED THE PRACTICE AS A MAJOR INCONVENIENCE AS WELL AS AN ACT OF INSTITUTIONAL ARROGANCE BEFORE LAST NOVEMBER SEARS HAD CONDUCTED TWO LIMITED TESTS OF THE CONCEPT OF ACCEPTING MAJOR CARDS BUT IT CHOSE TO STICK WITH ITS CARD POLICY AFTER DECIDING EACH TIME THAT THE BENEFITS DIDN'T OUTWEIGH THE POTENTIAL DAMAGE TO ITS OWN CARD OPERATION'S PROFITABILITY LAST YEAR THE SEARSCHARGE OPERATION HAD REVENUE OF 283 BILLION MAINLY FROM FINANCE CHARGES THE INHOUSE CARD HAD EARNINGS BEFORE ACCOUNTING CHANGES OF 4106 MILLION BUT LATE LAST YEAR IN ONE OF THE FIRST MOVES BY ARTHUR C MARTINEZ RECENTLY INSTALLED AS HEAD OF THE MERCHANDISE GROUP THE COMPANY ESTABLISHED A SUBSTANTIAL TEST PROGRAM IN WHICH A TOTAL OF 140 RETAIL STORES AND SPECIALTY OUTLETS IN CERTAIN CITIES ACCEPTED MAJOR CARDS CUSTOMERS HAVE RESPONDED ENTHUSIASTICALLY TO THE PROGRAM MR MARTINEZ SAID WITH NEW CUSTOMERS SHOPPING OUR STORES AND INCREMENTAL SALES GAINS THE TEST CITIES INCLUDED DALLAS MIAMI SAN DIEGO AND DAYTON OHIO THERE ARE COSTS ASSOCIATED WITH ACCEPTING OUTSIDE CARDS SUCH AS FEES PAID TO THE CREDITCARD COMPANIES BUT A SEARS SPOKESMAN SAID THAT THE INCREMENTAL SALES INCREASES FROM THE LATEST TEST IN THE RANGE OF 3 TO 5 FOR THE FIRST TIME HAD A POSITIVE EFFECT ON THE BOTTOM LINE AT THE SAME TIME SEARS SAID AGGRESSIVE MARKETING EFFORTS HELPED KEEP ITS SEARSCHARGE CARD THE MOST POPULAR CREDITCARD CHOICE IN TEST STORES SEARSCHARGE WHICH THE COMPANY CALLED THE BIGGEST RETAIL CREDIT CARD IN THE US HAS ABOUT 27 MILLION ACTIVE ACCOUNTS 9307300156 930730 COMPUTERS IMMINENT DEBUT OF NEWTON MESSAGEPAD HAS APPLE CROWING AND CRITICS CARPING BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL CUPERTINO CALIF APPLE COMPUTER INC'S MUCHDELAYED NEWTON MESSAGEPAD WILL BE INTRODUCED TO THE WORLD MONDAY IN BOSTON THE HANDHELD COMPUTER A SLEEK GREENBLACK BOX ABOUT THE SIZE OF A VIDEOCASSETTE WILL START SELLING IN LIMITED QUANTITIES NEXT WEEK AND WILL CHANGE THE WAY THE PUBLIC THINKS ABOUT COMPUTING SAYS GASTON BASTIENS APPLE'S PERSONALELECTRONICS CHIEF INDEED THE NEWTON PERFORMS AN IMPRESSIVE NUMBER OF FEATS FOR SUCH A SMALL PORTABLE MACHINE OPERATED WITH A STYLUS THAT TAPS OR WRITES ON A 4INCHBY3INCH SCREEN IT CAN RECOGNIZE HANDWRITING BETTER THAN ANY PREVIOUS COMPUTER AND CAN LINK WRITTEN COMMANDS TO STORED FILES OF INFORMATION SUCH AS ADDRESSES AND PHONE NUMBERS ONE VERSION CAN SEND FAXES AND ELECTRONIC MAIL OVER TELEPHONE LINES AND RECEIVE WIRELESS PAGER MESSAGES THERE'S NO DOUBT OUR BUSINESS VISION GOES WAY BEYOND HARDWARE SAYS MR BASTIENS AND BY SOME ACCOUNTS BEYOND REALITY ACCORDING TO MARKET RESEARCHERS THE NEWTON IS PERILOUSLY LATE TO MARKET AND AT 1200 TO 1500 FOR A FULLY EQUIPPED MODEL TOO EXPENSIVE TO BE A BIG HIT THE PRODUCT'S BASE PRICE IS 699 MOREOVER ANALYSTS SAY THAT THE NEWTON'S MESSAGING AND HANDWRITINGRECOGNITION FUNCTIONS HAVEN'T BEEN PERFECTED AND THAT THE PRODUCT LACKS TWO VITAL FEATURES THAT MOST FUTURE PERSONAL COMMUNICATORS WILL HAVE A CELLULAR PHONE AND A WIRELESS MODEM IT'S A VERY INTERESTING COMBINATION OF FEATURES AND FUNCTIONS THAT WON'T SELL WELL SAYS ANDREW SEYBOLD EDITOR OF OUTLOOK ON MOBILE COMPUTING AN INDUSTRY NEWSLETTER THE WORDS HAVE A FAMILIAR RING UNDER CHAIRMAN JOHN SCULLEY CRITICS COMPLAIN APPLE HAS TOO OFTEN BEEN LATE WITH KEY PRODUCTS SUCH AS A LOWCOST MACINTOSH AND BUNGLED THE INITIAL INTRODUCTION OF OTHERS SUCH AS ITS FIRST MAC PORTABLE ITS PAST SUCCESS HAS COME LARGELY FROM MILKING ITS MACINTOSH LINE'S TECHNOLOGICAL LEAD OVER COMPETITORS IN THE PAST TWO YEARS THAT EDGE HAS DISAPPEARED FIERCE PRICE CUTTING BY OTHER COMPUTER MAKERS LED TO A 310 MILLION RESTRUCTURING CHARGE IN ITS JUSTCOMPLETED FISCAL THIRD QUARTER MAINLY FOR LAYING OFF 16 OF ITS WORK FORCE EVEN BEFORE THE CHARGE APPLE WAS BARELY MAKING MONEY SHAREHOLDERS HAVE LOST 45 BILLION OF MARKET VALUE THIS YEAR AS APPLE'S STOCK PLUNGED JUST PRIOR TO THE BAD NEWS APPLE'S BOARD NAMED PRESIDENT MICHAEL SPINDLER TO REPLACE MR SCULLEY AS CHIEF EXECUTIVE OFFICER ALTHOUGH MR SCULLEY REMAINS CHAIRMAN APPLE HAS A TWOPRONGED SURVIVAL STRATEGY OF PUTTING ITS MACS ON MORE POWERFUL MICROPROCESSORS AND GENERATING 1 BILLION OF SALES FROM NEW BUSINESSES SUCH AS THE NEWTON A KEY PART OF THIS STRATEGY IS USING THE MAC AND THE NEWTON TO SELL OTHER SERVICES OVER AND OVER AGAIN FOR A FEE NEWTON USERS WILL BE ABLE TO USE NEWLY FORMED APPLE ONLINE SERVICES FOR ELECTRONIC MAIL DATABASES AND VARIOUS COMMERCIAL SERVICES APPLE HAS ALSO STARTED A PUBLISHING BUSINESS TO BE CALLED STARCORE THAT HAS ALREADY FORMED ALLIANCES WITH TIME WARNER INC RR DONNELLEY & SONS CO AND ADVANCE PUBLICATIONS INC'S RANDOM HOUSE UNIT TO PRODUCE DIGITAL VERSIONS OF TRAVEL GUIDES GAMES AND REFERENCE BOOKS ON ELECTRONIC CARDS CALLED PCMCIAS THAT WILL SLIDE INTO THE NEWTON THE WAY SPINDLER TALKS APPLE CAN'T JUST MAKE THE RAZORS SAYS AN APPLE INSIDER IT HAS TO MAKE THE BLADES BUT APPLE CRITICS WONDER ABOUT THE COMPANY'S ABILITY TO EXECUTE THE STRATEGY THEY ALLEGE THAT APPLE'S PAST MISTAKES REFLECT A LONGRUNNING DISARRAY WITHIN APPLE'S MANAGEMENT RANKS AS MR SCULLEY FREQUENTLY CHANGED COURSE AND REPLACED KEY PROJECT MANAGERS SOME DEALERS SAY APPLE IS STILL BUNGLING WHILE PRICE CUTS HAVE IGNITED DEMAND FOR ITS CENTRIS AND LC MODELS APPLE CAN'T DELIVER ENOUGH OF THEM AT THE SAME TIME DEALERS HAVE TROUBLE SELLING ILLCONCEIVED APPLE PRODUCTS SUCH AS THE DUO POWERBOOK SERIES THAT WORKS WITH AN EXPENSIVE DOCK A COLOR PRINTER AND THE COLOR CLASSIC WITH ITS TINY SCREEN ESTIMATES OF NEWTON'S FIRSTYEAR SALES RANGE FROM 50000 TO 150000 UNITS WHICH AT MOST WOULD GENERATE LESS THAN 1 OF APPLE'S TOTAL ANNUAL SALES ANALYSTS ARE ALMOST UNANIMOUS IN DECLARING THAT PERSONAL COMMUNICATORS IN GENERAL WON'T BE A BIG MARKET UNTIL 1995 AT THE EARLIEST WHEN WIRELESS MODEMS AND NETWORKS WILL BE MORE DEVELOPED AND LESS EXPENSIVE BY EARLY 1994 FEROCIOUS COMPETITORS WITH MORE POWERFUL COMMUNICATORS SUCH AS COMPAQ COMPUTER CORP INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC WILL BE ON THE SCENE THE NEWTON HAS ONLY A SIXMONTH LEAD ON THOSE RIVAL MACHINES BECAUSE OF INFIGHTING AND SHIFTING OBJECTIVES AT APPLE IT WAS LAUNCHED BY A GROUP OF YOUNG HACKERS IN 1987 AS A SORT OF PORTABLE SUPERCOMPUTER THAT STRUNG TOGETHER FOUR POWERFUL MICROPROCESSORS MADE BY AMERICAN TELEPHONE & TELEGRAPH CO THE PRODUCT WHICH COULD RECOGNIZE HANDWRITING WOULD COST UP TO 8000 BUT THE NEWTON'S PATRON PRODUCTDEVELOPMENT CHIEF JEAN LOUIS GASSEE WAS SQUEEZED OUT BY MR SCULLEY AND REPLACED WITH LARRY TESSLER WHO TOLD THE NEWTON CREW THAT THE PRODUCT'S DESIGN WAS TERRIBLY FLAWED MR TESSLER TOSSED OUT THE AT&T CHIP IN FAVOR OF ANOTHER THEY STARTED OVER MEANWHILE ANOTHER TEAM HAD SPRUNG UP UNDER FUTURIST MARC PORAT PROMOTING A MORE MODEST PERSONAL COMMUNICATOR CODENAMED POCKET CRYSTAL WHICH WOULD DISPENSE WITH HANDWRITING RECOGNITION WHILE EMPHASIZING EASE OF COMMUNICATION UNDER MR SCULLEY'S DIRECTION THE TWO SQUADS MERGED THEIR PLANS IN 1990 WITH THE ORDER THAT THEY PRODUCE A PRODUCT IN TWO YEARS COSTING AROUND 2000 THE DECISION WAS ILLCONCEIVED THE TWO GROUPS FOUGHT AND EVENTUALLY SEPARATED WHAT'S MORE THE NEWTON GROUP CONTINUED TO FEUD WITH MR TESSLER AND FELL FURTHER BEHIND SCHEDULE IN THE SPRING OF 1991 MR SCULLEY CHANGED HIS MIND AND DECREED THAT THE NEWTON SHOULD COST 500 AN IMPOSSIBLE GOAL ACCORDING TO THE NEWTON GROUP MR TESSLER WAS REPLACED IN THE FALL OF 1992 BY MR BASTIENS IN MAY 1992 MR SCULLEY INTRODUCED THE NEWTON IN GRANDIOSE FASHION AT A PRESS CONFERENCE PRIOR TO A BIG TRADE SHOW ALTHOUGH NO PROTOTYPE YET EXISTED AMONG OTHER THINGS HE SAID THE NEWTON WAS THE BEGINNING OF THE BIGGEST THING APPLE HAS EVER DONE A MACHINE THAT WOULD LAUNCH THE AGE OF DIGITAL CONVERGENCE IN WHICH COMPUTING TELECOMMUNICATIONS ENTERTAINMENT PUBLISHING AND OTHER BUSINESSES COALESCE TO FORM THE MOTHER OF ALL INDUSTRIES HE ADDED THIS IS TREMENDOUSLY EXCITING FOR THE WORLD AND HE DEMONSTRATED THE PRODUCT AT THE TRADE SHOW BY WAVING AROUND AN EMPTY PLASTIC BOX AND SHOWING WHAT THE SOFTWARE COULD DO ON A MAC MR SCULLEY HAD CREATED EXPECTATIONS FOR THE NEWTON THAT THE TEAM HAD NO HOPE OF MEETING AT 1000 MUCH LESS 500 TECHNICAL PROBLEMS PARTICULARLY THE HANDWRITING RECOGNITION CONTINUED TO PLAGUE THE HACKERS WHO IN THE END FELL MONTHS BEHIND SCHEDULE AND TO REACH A BASE PRICE OF 699 THEY HAD TO STRIP OUT SOME FEATURES SETTLE FOR IMPERFECT COMPROMISES ON OTHERS AND OFFER THE NEWTON IN PARTS THAT BASE MACHINE WON'T INCLUDE A WIRED MODEM OR SOFTWARE FOR LINKING UP WITH OTHER COMPUTERS THOSE ESSENTIAL FEATURES WILL UP THE PRICE TO 900 EXTRA MEMORY AND A PAGER THAT SLIDES INTO THE MACHINE FOR ONEWAY RECEPTION OF WIRELESS MESSAGES WILL EACH COST AN ADDITIONAL 300 IF HOOKED TO A TELEPHONE LINE THE NEWTON CAN SEND FAXES BUT CAN'T RECEIVE THEM IT HAS NO CELLULAR PHONE AND CAN'T ACCESS WIRELESS NETWORKS THE ELECTRONICMAIL MESSAGES CAN ONLY BE SENT OVER A PROPRIETARY SYSTEM THAT DOESN'T EXIST YET MR SEYBOLD THE EDITOR OF THE MOBILE COMPUTING NEWSLETTER SAYS USING A PEN TO SEND EMAIL IS TOO CUMBERSOME ANYWAY SO THE MOST SUCCESSFUL PERSONAL COMMUNICATORS FOR MESSAGING WILL HAVE KEYBOARDS AND THE HANDWRITING RECOGNITION CAN'T BE TRUSTED OUR LINE IS THAT NO ONE IS GOING TO WRITE THE GREAT AMERICAN BUSINESS LETTER ON THIS LET ALONE THE GREAT AMERICAN NOVEL SAYS BRUCE STEPHEN AN ANALYST FOR INTERNATIONAL DATA CORP A MARKETRESEARCH CONCERN THE NEWTON ISN'T A PERSONAL COMMUNICATOR BUT AN INFORMATION ORGANIZER ON STEROIDS SAYS MR STEPHEN THAT IS FAR FROM WHAT MR SCULLEY PROMISED BUT MR BASTIENS SAYS NEW AND IMPROVED MODELS ARE FORTHCOMING AND TOUTS THE NEW SERVICES THAT WILL BECOME AVAILABLE SUCH AS APPLE'S ONLINE NETWORK AND ELECTRONIC BOOKS BUT THESE SERVICES ARE TOO EXPENSIVE RIGHT NOW FOR MASS CONSUMPTION APPLE CURRENTLY CHARGES 12 AN HOUR FOR ONLINE SERVICE THE ELECTRONIC BOOKS ARE EXPECTED TO COST 50 AND UP THE BIGGEST MARKETING OBSTACLE OF ALL ACCORDING TO MARKET OBSERVERS SUCH AS MR SEYBOLD AND RICHARD SHAFFER ANOTHER NEWSLETTER EDITOR IS MR SCULLEY'S HYPE BECAUSE OF DISAPPOINTED EXPECTATIONS THERE WILL ALMOST CERTAINLY BE A BACKLASH AGAINST THE NEWTON PREDICTS MR SHAFFER WE WILL GO FROM OVEREXCITEMENT ABOUT THE NEWTON TO TRASHING THE NEWTON MICHAEL WOFSEY CONTRIBUTED TO THIS ARTICLE 9307300155 930730 BUSINESS BRIEF MERCANTILE BANCORP COMPANY ARRANGES PURCHASE OF METRO BANCORP OF IOWA MERCANTILE BANCORP OF ST LOUIS SAID IT AGREED TO ACQUIRE METRO BANCORP OF WATERLOO IOWA FOR STOCK WITH A CURRENT INDICATED VALUE OF ABOUT 55 MILLION CLOSELY HELD METRO IS THE HOLDING COMPANY FOR WATERLOO SAVINGS BANK WHICH HAD ASSES AT JUNE 30 OF 378 MILLION MERCANTILE WHICH AS OF MARCH 30 HAD 253 MILLION COMMON SHARES OUTSTANDING WILL ISSUE ABOUT 1120000 SHARES TO EFFECT THE TRANSACTION WHICH WILL MARK ITS ENTRY INTO IOWA THE MERGER IS SUBJECT TO APPROVAL BY METRO'S STOCKHOLDERS AS WELL AS BY REGULATORS 9307300154 930730 MUTUAL FUNDS SALES OF MUTUAL FUNDS STAY HOT THIS SUMMER BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CASH KEEPS POURING INTO MUTUAL FUNDS DEFYING THE DOLDRUMS THAT USUALLY AFFLICT FUND SALES IN SUMMERTIME INVESTORS POURED A HEFTY 92 BILLION INTO STOCK FUNDS IN JUNE THE INVESTMENT COMPANY INSTITUTE REPORTED ALTHOUGH THAT DIDN'T MATCH THE MONTHLY RECORD OF 118 BILLION SET DURING THE INDIVIDUALRETIREMENTACCOUNT SEASON IN MARCH IT WAS SLIGHTLY HIGHER THAN MAY'S INFLOW AND NEARLY DOUBLE THE JUNE 1992 LEVEL IF ANYTHING THE PACE ACCELERATED IN JULY SEVERAL FUND GROUPS REPORTED THE NATION'S LARGEST FUND COMPANY FIDELITY INVESTMENTS SAID JULY IS TURNING OUT TO BE ITS BEST SALES MONTH EVER DRIVEN BY STRONG CASH FLOW INTO STOCK FUNDS IT SURPRISED ALL OF US SAID NEAL LITVACK A FIDELITY EXECUTIVE VICE PRESIDENT WE WERE EXPECTING THE USUAL SEASONAL DOWNTURN LOW INTEREST RATES CONTINUE TO DRIVE INVESTORS OUT OF BANK DEPOSITS MANY FUND GROUPS ARE SEEING STRONG INFLOWS INTO FUNDS THAT INVEST IN HIGHDIVIDEND STOCKS BALANCED FUNDS WHICH INVEST IN BOTH STOCKS AND BONDS ARE THE BESTSELLING TYPE OF FUND FOR JULY AT FIDELITY AND ALSO AT VANGUARD GROUP THE SECONDLARGEST FUND COMPLEX WHILE INVESTORS MAY BE CHOOSING CONSERVATIVE FUNDS MANY OF THEM ARE INCREASING THEIR RISKS IN SEARCH OF HIGHER RETURNS AT THIS POINT THE PEOPLE THAT ARE SWITCHING FROM CERTIFICATES OF DEPOSIT OR MONEY MARKET FUNDS ARE THE ONES THAT HAVE HELD OUT THE LONGEST AND ARE THEREFORE THE MOST CONSERVATIVE SAID JOHN KEEFE OF KEEFE WORLDWIDE SERVICES A FUND CONSULTING FIRM IN NEW YORK CITY BOND FUNDS CONTINUED A PATTERN OF HEAVY CASH FLOWS THIS YEAR ATTRACTING 105 BILLION IN CASH IN JUNE ACCORDING TO THE ICI THE TRADE GROUP FOR THE FUND INDUSTRY THE STATISTICS FOR BOND FUNDS INCLUDE AT LEAST SOME MONEY GOING TO STOCKS BECAUSE IT ALSO INCLUDES INFLOWS INTO BALANCED FUNDS INVESTING IN STOCKS AND BONDS THE ICI'S DATA ON CASH FLOW INCLUDE NEW SALES OF FUNDS MINUS WITHDRAWALS BY DEPARTING SHAREHOLDERS PLUS THE NET RESULT OF SWITCHING AMONG FUNDS IN THE SAME GROUP REINVESTED DIVIDENDS ARE EXCLUDED THE ICI ALSO REPORTED THAT CASH HOLDINGS OF STOCK FUNDS DROPPED A TICK IN JUNE DESPITE THE HEAVY INFLOW OF CASH STOCK FUNDS HELD 91 OF THEIR ASSETS IN CASH COMPARED WITH 92 IN MAY MOST FUND MANAGERS CONSIDER THEMSELVES TO BE FULLY INVESTED WITH ABOUT 5 OF THEIR PORTFOLIOS IN CASH SO THE CASH IN FUNDS' COFFERS REPRESENTS UNTAPPED BUYING POWER THAT COULD PUSH STOCKS HIGHER NOT ALL THE CASH FLOODING INTO FUNDS WAS HEADED FOR US SECURITIES INTERNATIONAL STOCK FUNDS ARE ATTRACTING SHARPLY HIGHER CASH FLOWS AT SCUDDER STEVENS & CLARK INC AND T ROWE PRICE ASSOCIATES INC ON THE HEELS OF BIG RETURNS THIS YEAR IN MANY FOREIGN MARKETS EXECUTIVES AT THOSE FIRMS WERE AT A LOSS TO EXPLAIN WHY SUMMER VACATIONS HAVEN'T SLOWED DOWN FUND CASH FLOWS MAYBE THE SPREAD OF CELLULAR PHONES IS RESPONSIBLE SAID STEVEN NORWITZ A VICE PRESIDENT AT T ROWE PRICE KEMPER CORP'S KEMPER FINANCIAL SERVICES MARSH & MCLENNAN'S PUTNAM INVESTMENTS VANGUARD AND OTHER GROUPS REPORTED HIGHER CASH FLOWS INTO INTERNATIONAL FUNDS IN JULY AS WELL IN JUNE STOCK AND BOND FUNDS INVESTING OVERSEAS TOOK IN ONE OF EVERY EIGHT DOLLARS GOING INTO MUTUAL FUNDS SAID AVI NACHMANY AN ANALYST AT STRATEGIC INSIGHT A NEW YORK CITY CONSULTING FIRM ENERGY FUNDS SAW AN OUTFLOW OF MONEY IN JULY ACCORDING TO AMG DATA SERVICES AN ARCATA CALIF FIRM THAT TRACKS WEEKLY MUTUALFUND FLOWS MANY OF THESE FUNDS HAD PRICE DECLINES IN THE MONTH MONEY RUSHING INTO FUNDS CAME FROM MORE SOURCES THAN SIMPLY LOWYIELDING BANK DEPOSITS AND MONEY MARKET FUNDS THERE'S A LOT COMING IN FROM PENSIONS AND PROFITSHARING AND 401K GROUPS RICHARD B FISHER CHAIRMAN OF FEDERATED SECURITIES CORP SAID MUTUAL FUNDS HAVE BECOME ACCEPTED BY INSTITUTIONS BOND FUND INVESTORS TENDED TO GO WITH CONSERVATIVE CHOICES IN JULY FAVORING THOSE THAT INVEST IN SHORTTERM OR INTERMEDIATEMATURITY BONDS WHEN INTEREST RATES RISE BOND PRICES DECLINE BUT SHORTTERM BONDS WOULD HAVE LESS OF A PRICE DECLINE THAN LONGTERM BONDS SHOULD INTEREST RATES RISE BROADLY NOT EVERYONE WENT THE CONSERVATIVE ROUTE HIGH YIELD JUNKBOND FUNDS WHICH INVEST IN THE SPECULATIVE DEBT OF COMPANIES RATED BELOW INVESTMENT GRADE CONTINUED TO SELL WELL FOLLOWING MORE THAN TWO YEARS OF STRONG RETURNS OPPENHEIMER MANAGEMENT CORP SAID JULY WAS A RECORD MONTH FOR FUND SALES FOLLOWING THE FIRM'S PRIOR RECORD SET IN JUNE DUE LARGELY TO STRONG CASH FLOWS INTO ITS BOND FUNDS SOME OF OPPENHEIMER'S GAINS WERE BECAUSE OF NEW PRICING STRUCTURES FOR ITS FUNDS SOME FUND GROUPS REPORTED PARTICULARLY STRONG SALES OF INTERMEDIATETERM MUNICIPAL BOND FUNDS SALES OF VARIABLE ANNUITIES WERE HIGHER IN JUNE THE ICI REPORTED ANNUITIES ARE NOW SELLING IN A MONTH WHAT THEY USED TO SELL SOME YEARS BACK IN A YEAR SAID MR NACHMANY OF STRATEGIC INSIGHT A HIGHER PERCENTAGE OF INVESTORS PLANNED TO BUY STOCKS AND STOCK FUNDS IN JULY DESPITE BECOMING MORE PESSIMISTIC ABOUT THE ECONOMY ACCORDING TO A UNIVERSITY OF MICHIGAN SURVEY OF INVESTORS CONDUCTED ON BEHALF OF FIDELITY PEOPLE ARE BEARISH IN GENERAL BUT PEOPLE THINK THAT THE STOCK MARKET IS THE BEST INVESTMENT THAT'S AVAILABLE SAID FIDELITY'S MR LITVACK 9307300153 930730 BURLINGTON NORTHERN SIGNS PACT FORT WORTH TEXAS BURLINGTON NORTHERN INC SAID IT SIGNED A CONTRACT WITH UNION SWITCH & SIGNAL INC TO BUY A RAILROAD DISPATCHING CONTROL SYSTEM TO BE INSTALLED HERE BY 1995 A SPOKESMAN FOR BURLINGTON NORTHERN THE NATION'S LARGEST RAILROAD SAID THE CONTRACT'S VALUE IS WELL IN EXCESS OF 10 MILLION THE CONTROL SYSTEM WILL BE PART OF BURLINGTON NORTHERN'S PLAN TO CONSOLIDATE ALL ITS TRAIN DISPATCHING FUNCTIONS IN ITS NEW NETWORK CONTROL CENTRAL IN FORT WORTH UNION SWITCH & SIGNAL IS A RAILROAD SIGNALING AND CONTROL SYSTEMS COMPANY THAT IS OWNED BY ANSALDO SPA A TRANSPORTATION ENERGY AND INDUSTRIAL SYSTEMS COMPANY BASED IN GENOA ITALY 9307300152 930730 WHO'S NEWS KAUFMAN & BROAD'S CHAIRMAN LOS ANGELES KAUFMAN & BROAD HOME CORP SAID ELI BROAD 60 YEARS OLD IS STEPPING DOWN AS THE COMPANY'S CHAIRMAN EFFECTIVE AUG 31 MR BROAD A COFOUNDER OF THE COMPANY WILL REMAIN ON THE BOARD AS FOUNDERCHAIRMAN AND CHAIRMAN OF KAUFMAN & BROAD'S EXECUTIVE COMMITTEE HE WILL BE SUCCEEDED BY BRUCE KARATZ 47 WHO'S THE HOMEBUILDER'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MR BROAD WHO ALSO IS CHAIRMAN AND CEO OF LOS ANGELESBASED SUNAMERICA INC SAID THE MOVE WAS A LOGICAL EXTENSION OF THE CHANGES IN MY BUSINESS LIFE KAUFMAN & BROAD BUILDS SINGLEFAMILY HOMES IN CALIFORNIA NEVADA TORONTO AND FRANCE 9307300151 930730 SWISS PRODUCER PRICE INDEX BERN SWITZERLAND SWITZERLAND'S PRODUCER PRICE INDEX ROSE 02 IN JUNE FROM MAY WHILE THE COUNTRY'S IMPORT PRICE INDEX DECLINED 05 IN THE SAME PERIOD THE FEDERAL STATISTICS OFFICE SAID CALCULATED TOGETHER THE TWO INDEXES WERE UNCHANGED IN JUNE COMPARED WITH MAY AND WERE UP 01 FROM JUNE A YEAR AGO THE GOVERNMENT SAID 9307300150 930730 WYLE LABORATORIES REPURCHASE EL SEGUNDO CALIF WYLE LABORATORIES SAID ITS BOARD AUTHORIZED A STOCK BUYBACK OF UP TO 15 MILLION COMMON SHARES TO BE PURCHASED FROM TIME TO TIME ON THE OPEN MARKET WYLE SAID THE AUTHORIZATION REPLACES A ONEMILLIONSHARE BUYBACK PROGRAM APPROVED BY THE BOARD IN 1989 THE SHARES WOULD BE AVAILABLE FOR VARIOUS CORPORATE PURPOSES AND THERE IS NO TIME LIMIT FOR THE REPURCHASE THE COMPANY SAID WYLE DISTRIBUTES SEMICONDUCTOR AND COMPUTER PARTS AND DOES TESTING AND ENGINEERING WORK FOR THE NUCLEARPOWER INDUSTRY DEFENSE CONTRACTORS AND AEROSPACE FIRMS THE COMPANY HAS 122 MILLION SHARES OUTSTANDING 9307300149 930730 BUSINESS BRIEF CABOT POSTS INCREASE OF 12 IN EARNINGS FOR FISCAL 3RD QUARTER BOSTON CABOT CORP CITING STRONG RESULTS FROM ITS ENERGY BUSINESS AND PART OF ITS CHEMICALS BUSINESS SAID FISCAL THIRDQUARTER PROFIT ROSE 12 THE COMPANY ALSO SAID IT MAY REPORT SPECIAL CHARGES FOR THE FISCAL FOURTH QUARTER BECAUSE OF COSTS ASSOCIATED WITH THE POSSIBLE SHUTDOWN OF A PLANT AND OTHER EXPENSES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CABOT CLOSED AT 5050 UP 150 THE ENERGY AND SPECIALTY CHEMICALS CONCERN SAID THIRDQUARTER EARNINGS WERE 184 MILLION OR 94 CENTS A SHARE COMPARED WITH YEAREARLIER EARNINGS OF 164 MILLION OR 84 CENTS A SHARE SALES ROSE 13 TO 4188 MILLION FROM 371 MILLION CABOT SAID ITS ENERGY UNIT WHICH USUALLY ISN'T PROFITABLE IN THE THIRD QUARTER'S WARMER MONTHS HAD AN OPERATING PROFIT OF 33 MILLION FOR THE QUARTER BECAUSE OF HIGHER SALES OF LIQUIFIED NATURAL GAS THE COMPANY ADDED THAT ITS SPECIALTY CHEMICALS AND MATERIALS GROUP POSTED STRONGER VOLUMES AND MARGINS IN NORTH AMERICA AND LATIN AMERICA THAN IN THE YEARAGO QUARTER OFFSET BY PERSISTENT WEAKNESS IN EUROPE AND CONTINUING DIFFICULTIES IN JAPAN CABOT SAID THAT DUE TO THE DEPRESSED BUSINESS ENVIRONMENT IN EUROPE IT MAY CLOSE SEVERAL PRODUCTION LINES OR AN ENTIRE PLANT THERE POSSIBLY RESULTING IN AN AFTERTAX RESTRUCTURING CHARGE OF UP TO 30 MILLION AT THE END OF FISCAL 1993 CABOT ALSO SAID IT MAY POST AN ESTIMATED FOURTHQUARTER CHARGE OF 45 MILLION BECAUSE OF AN ACCOUNTING CHANGE RELATED TO POSTRETIREMENT BENEFITS 9307300148 930730 INTERNATIONAL AS ELITE ITALIANS ARE DRIVEN TO SUICIDE THEORIES OF DISGRACE AND DRAMA ARISE BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN IN AMERICA YOU GO TO JAIL AND YOU WRITE A BEST SELLER YOU LOSE A FORTUNE AS MICHAEL MILKEN DID AND YOU GO INTO SOCIAL WORK GET BANNED FROM BASEBALL LIKE PETE ROSE AND YOU END UP WITH YOUR OWN RADIO SHOW FROM DISCREDITED POLITICIANS TO DISGRACED BALLPLAYERS AMERICAN PUBLIC FIGURES HAVE AN AMAZING KNACK FOR STAGING COMEBACKS BUT THIS IS ITALY FOR ITALIANS IT ISN'T SURPRISING THAT FORMER FERRUZZI GROUP CHAIRMAN RAUL GARDINI WOULD PUT A BULLET TO HIS HEAD JUST AFTER HIS BUTLER SERVED HIM BREAKFAST IN BED RATHER THAN FACE BEING HUMILIATED IN PUBLIC MR GARDINI WASN'T THE ONLY ONE NINE OTHER POWERFUL FIGURES IMPLICATED IN ITALY'S WIDENING CORRUPTION SCANDAL HAVE CHOSEN SUICIDE YESTERDAY AN 11TH PRISONER ANTONINO GIOE AN ALLEGED MAFIA MEMBER WHO IS SUSPECTED OF PLOTTING TO KILL ROMAN MAGISTRATES HANGED HIMSELF IN A ROME PRISON WHAT IS IT IN THE ITALIAN CHARACTER THAT DRIVES SUCH POWERFUL MEN TO SUICIDE I SUPPOSE YOU COULD RELATE THESE SUICIDES TO THE ITALIAN IDEA OF LA BELLA FIGURA THE PREOCCUPATION WITH CUTTING THE RIGHT IMAGE SAYS ENRICO TACCHI A PROFESSOR OF SOCIAL RESEARCH AT THE CATHOLIC UNIVERSITY HERE IT IS ONLY A HYPOTHESIS BUT ONE THAT FITS THE CURRENT SITUATION HUGELY SUCCESSFUL BUSINESSMEN IN ITALY RECEIVE THE SAME LEVEL OF ADULATION AS MOVIE STARS MR GARDINI WITH HIS GOOD LOOKS AND GREAT TAN HIS VENICE PALACE ARGENTINE HACIENDA AND AMERICA'S CUP RACING YACHT WAS AN IDEAL EXAMPLE BUT THERE IS SOMETHING EVEN MORE FUNDAMENTAL SAYS NADIO DELAI HEAD OF THE RESEARCH FOUNDATION CENSIS IN ROME THERE IS A CRUCIAL DIFFERENCE BETWEEN THE US AND ITALY PERSONAL FAILURE IS MUCH LESS ACCEPTED HERE THE IDEA OF TRY AGAIN FIGHT YOUR WAY BACK IS MUCH LESS COMMON FOR US WE'RE A MUCH LESS MOBILE CULTURE AND WE CAN'T JUST MOVE TO ANOTHER TOWN AND START OVER FOR THE ITALIANS THE NOTION OF SUICIDE AS AN HONORABLE WAY OUT DATES BACK TO ANTIQUITY ANCIENT ROMANS CONSIDERED SUICIDE A GESTURE OF LIBERTY AND DIGNITY THE PREROGATIVE OF THE GREAT AND BRAVE MORE OFTEN IT WAS THE CHOICE OF THE DISGRACED THE EMPEROR NERO THREW HIMSELF ON A SWORD AS HIS REALM CRUMBLED AROUND HIM TODAY MORE THAN TWICE AS MANY ITALIAN MEN KILL THEMSELVES THAN DO ITALIAN WOMEN A TWOYEAROLD SURVEY BY ISTAT THE GOVERNMENT STATISTICS BUREAU SHOWS SUICIDE IS MORE COMMON AMONG PROFESSIONAL MEN THAN OTHER WORKERS THE ROMAN CATHOLIC CHURCH USUALLY HAS REFUSED A RELIGIOUS BURIAL TO THOSE WHO TOOK THEIR OWN LIVES YET THE CATHOLIC CHURCH DIDN'T CONDEMN MR GARDINI'S ACT HE HAD A FUNERAL IN A CATHOLIC CHURCH IN RAVENNA THE VATICAN ISSUED A STATEMENT BLURRING THE LINES OF WHAT THE CHURCH'S POSITION CURRENTLY IS THE DELIBERATE SUICIDE THE VATICAN INTONED COMES TO FRUITION IN AN ERA OF NO VALUES THE CATHOLIC CURIA IN MILAN FELT COMPELLED TO JUSTIFY THE CATHOLIC BURIAL OF GABRIELE CAGLIARI EXPRESIDENT OF THE STATEOWNED ENERGY CONGLOMERATE ENI WHO SUFFOCATED HIMSELF WITH A PLASTIC BAG IN PRISON AFTER BEING ARRESTED IN THE CORRUPTION INVESTIGATION NO ONE COULD EVER PENETRATE THE DESPERATION BORDERING ON FOLLY THAT DRIVES A MAN TO SUICIDE EACH CASE IS UNIQUE THIS IS WHY OUR BEHAVIOR MUST INCLUDE THE SUSPENSION OF JUDGMENT MILAN'S CARDINAL SAID AS MUCH AS ITALIANS LIKE DRAMATIC ENDINGS THEY LOVE INTRIGUE EVEN MORE THAT IS WHY IN CAFE CONVERSATIONS SOME PEOPLE AREN'T BUYING THE PREMISE THAT ALL OF THE SUICIDES WERE IN FACT THAT EVEN THE POLICE SPECULATE THAT ANOTHER MAJOR FIGURE WHO SUPPOSEDLY KILLED HIMSELF SERGIO CASTELLARI FORMERLY A SENIOR GOVERNMENT OFFICIAL WAS REALLY THE VICTIM OF FOUL PLAY THIS DESPITE THE FACT THAT MR CASTELLARI LEFT A SERIES OF LETTERS AND WAS FOUND ON A HILL NEAR HIS HOUSE HOLDING A HANDGUN WITH A BULLET IN HIS HEAD THE EVIDENCE FOR MURDER AN ANALYSIS OF A CIGAR BUTT AT THE SCENE DIDN'T MATCH MR CASTELLARI'S HE OFTEN TOOK A CIGAR AND BOTTLE OF WHISKEY TO THE SITE THEN THERE IS THE MATTER OF SOME MISSING FILES AND AN UNEXPLAINED MEETING BETWEEN MR CASTELLARI AND FORMER PRIME MINISTER GIULIO ANDREOTTI EARLIER THE SAME DAY MR ANDREOTTI IS UNDER INVESTIGATION IN SEVERAL OTHER CASES AS FAR AS THE DEATH OF ALLEGED MAFIA MEMBER MR GIOE IS CONCERNED THE SKEPTICS ALREADY ARE BUZZING AS THE NEWS OF HIS HANGING IN PRISON COMES ACROSS A TELEVISION SCREEN A HOTELIER SHAKES HIS HEAD AND SNEERS THEY MUST HAVE BEEN SOME STRONG SHOE LACES UNLESS OF COURSE HE HAD HELP 9307300147 930730 KMART TOY VENDORS ARE ASKED TO SELL ON CONSIGNMENT BY CHRISTINA DUFF AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL IN AN UNUSUALLY AGGRESSIVE MOVE THAT COULD ALIENATE SUPPLIERS KMART CORP IS ASKING SOME OF ITS TOY VENDORS TO HELP SHOULDER THE FINANCIAL BURDEN OF UNSOLD INVENTORY A SPOKESWOMAN FOR THE SECONDLARGEST US RETAILER SAID KMART BUYERS HAVE ASKED ABOUT 20 OF ITS 200 TOY SUPPLIERS TO SELL THEIR GOODS TO KMART ON CONSIGNMENT THAT MEANS KMART WOULDN'T HAVE TO PAY FOR THE TOYS UNTIL THEY APPEARED ON STORE SHELVES THE VENDORS MEANWHILE WOULD BE FORCED TO KEEP THE INVENTORY ON THEIR BOOKS WHILE IT SITS IN KMART WAREHOUSES THE SPOKESWOMAN STRESSED THAT SELLING ON CONSIGNMENT IS NOT A CONDITION OF DOING BUSINESS WITH KMART BUT RATHER AN OPTION BOTH PARTIES MUST AGREE TO HOWEVER ONE TOY SUPPLIER WHO SPOKE ON THE CONDITION OF ANONYMITY SAID KMART IS TELLING ME THAT IF I DON'T SIGN I DON'T DO BUSINESS WITH THEM TOYS ACCOUNT FOR ABOUT 9 OF KMART'S SALES WHICH TOTALED 377 BILLION LAST YEAR THE RETAIL INDUSTRY HAS ALWAYS SQUEEZED ITS SUPPLIERS TO GET THE BEST DEALS AND ASKING VENDORS TO SELL ON CONSIGNMENT IS NOT UNKNOWN IN DIFFICULT ECONOMIC PERIODS BUT KMART'S MOVE INDICATES A CERTAIN DESPERATION RETAIL EXPERTS SAID BECAUSE THE COMPANY SEEMS WILLING TO ALIENATE THE INDUSTRY TO SHORE UP ITS OWN BOTTOM LINE THE TROY MICH COMPANY'S PROFITS HAVE DECLINED FOR SEVERAL QUARTERS AND KMART HAS WARNED THAT EARNINGS LIKELY WILL FALL BELOW FISCAL 1993 LEVELS IN THE YEAR ENDED JAN 30 THE COMPANY HAD NET INCOME OF 941 MILLION OR 206 A SHARE KMART RECENTLY STRETCHED OUT TERMS OF ITS PAYMENT TO APPAREL VENDORS TO 60 DAYS FROM 30 DAYS AND THE SPOKESWOMAN SAID SHE IS SURE THE CONSIGNMENT OPTION IS BEING DISCUSSED IN SOME OTHER LINES BUT DIDN'T ELABORATE FOR MANY VENDORS THOUGH SELLING ON CONSIGNMENT IS THE WORST OF ALL POSSIBLE WORLDS IF THEY REFUSE THEY RISK LOSING THE BUSINESS BUT IF THEY GO ALONG PAYMENTS FROM THE RETAILER ARE DELAYED AND SOMETIMES DIMINISHED THE SUPPLIERS ALSO MUST SWALLOW THE COST OF POORSELLING INVENTORY THAT NEVER LEAVES THE DISTRIBUTION CENTER TYPICALLY IT'S THE RETAILER THAT TAKES RESPONSIBILITY FOR SLOWSELLERS OUR MEMBERSHIP HAS POLITELY DECLINED TO GO ALONG SAID DAVID MILLER EXECUTIVE DIRECTOR OF THE TOY MANUFACTURERS ASSOCIATION ADDED ALAN HASSENFELD CHAIRMAN OF HASBRO INC THE US'S LARGEST TOY COMPANY CONSIGNMENT IS ABSOLUTELY NOT IN MY VOCABULARY THE KMART SPOKESWOMAN ASSERTED THAT THE RETAILER HAS PROPOSED CONSIGNMENT AGREEMENTS ONLY TO ITS BIGGEST TOY VENDORS WHICH INCLUDE HASBRO MATTEL INC AND TYCO TOYS INC SHE SAID AT LEAST ONE COMPANY HAS AGREED TO CONSIGNMENT TERMS BUT WOULDN'T ELABORATE TOY ANALYSTS SAID THAT SO FAR KMART IS THE ONLY BIG RETAILER THEY KNOW OF THAT IS SEEKING CONSIGNMENT AGREEMENTS BUT IF THE VENDORS GIVE IN ANALYSTS WARNED THAT KMART'S COMPETITORS LIKELY WOULD DEMAND EQUALLY FAVORABLE TERMS HOWEVER MICHAEL GOLDSTEIN VICE CHAIRMAN FOR TOYS R US INC SAID THE COMPANY'S NEVER EVEN CONSIDERED A CONSIGNMENT AGREEMENT AND I DON'T SEE WHY WE EVER SHOULD OFFICIALS AT WALMART STORES INC WEREN'T AVAILABLE TO COMMENT 9307300146 930730 PROGRESSIVE CORP SELLS SHARES MAYFIELD HEIGHTS OHIO PROGRESSIVE CORP AN INSURANCE HOLDING COMPANY COMPLETED THE SALE OF 4950000 COMMON SHARES FOR 37 A SHARE BEAR STEARNS & CO AND FIRST BOSTON CORP WERE LEAD UNDERWRITERS THE OFFERING INCLUDED 450000 COMMON SHARES EXERCISED UNDER THE UNDERWRITERS' OVERALLOTMENT OPTION 9307300145 930730 INTERNATIONAL PORTUGAL'S JOBLESS RATE RISES MADRID PORTUGAL'S UNEMPLOYMENT RATE ROSE TO 53 OF THE WORK FORCE IN THE SECOND QUARTER FROM 51 IN THE FIRST QUARTER THE PORTUGUESE NATIONAL STATISTICS INSTITUTE SAID IN THE SECOND QUARTER OF 1992 UNEMPLOYMENT STOOD AT 39 9307300144 930730 BROKERS AT MERRILL AREN'T DESK JOCKEYS WHEN ASTRIDE HOGS' WILL HARLEYDAVIDSON BENEFIT TO GET INTO THIS BIKER GANG YOU NEED A LICENSE TO TRADE BY JONATHAN MAHLER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THEY ROAR INTO TOWN WRAPPED IN LEATHER HOGS RUMBLING AND QUOTRON MACHINES LEFT IN THE DUST THEY AREN'T THE HELL'S ANGELS THEY'RE THE LYNCH MOB A GANG OF ARIZONABASED MERRILL LYNCH & CO STOCKBROKERS WITH A PASSION FOR HARLEY DAVIDSONS THESE BRIEFCASETOTING BIKERS PEDDLE STOCKS AND BONDS ALL WEEK BUT WHEN THE WEEKEND ROLLS AROUND THE 23 MEN AND THREE WOMEN YIELD TO THE SPIRIT OF THE OPEN ROAD IT ALLOWS US TO DO SOMETHING THAT IS ABSOLUTELY AND COMPLETELY REMOVED FROM WHAT WE DO HERE SAYS CRAIG SCOOTER GRUBB ONE OF THE GROUP'S FOUNDERS WHO SPORTS A GRIM REAPER TATTOO ON HIS CALF IT ALL BEGAN WHEN FOUR MOTORCYCLERIDING BROKERS FROM TUCSON ARIZ DECIDED TO DEVELOP A LOGO AND MEMBERSHIP CERTIFICATE IT WAS MORE OF A FLUKE THAN ANYTHING ELSE SCOOTER SAYS THERE WERE TWO COMMON THREADS BIKES AND MERRILL LYNCH OF COURSE GAINING MEMBERSHIP TO THIS GROUP OF WHEELERDEALERS IS GRUELING YOU HAVE TO SUFFER THROUGH THE INFAMOUS SERIES 7 STOCKBROKERS EXAM AND LAND A JOB AT THE INVESTMENT COMPANY BUT SOME MERRILL BROKERS DON'T HEAR THE CALL OF THE HIGHWAY THEY JUST WANT TO OWN ONE OF THE GROUP'S STYLISH JACKETS THERE ARE PROBABLY ABOUT 50 TO 60 JACKETS OUT THERE SAYS MARC LOCK OR DR LOCK ANOTHER FOUNDING MEMBER THE MOB SENT A COMPLIMENTARY ONE ALONG WITH A MEMBERSHIP CERTIFICATE TO WILLIAM SCHREYER MERRILL'S RECENTLY RETIRED CHAIRMAN WHAT WILL THE LONGTIME HEAD OF ONE OF THE NATION'S LARGEST BROKERAGE HOUSES DO WITH A BIKER'S JACKET I'M SURE HE WON'T WEAR IT AND IT PROBABLY WON'T EVEN MAKE IT INTO HIS DEN SCOOTER CONCEDES THE ARM OF THE JACKET READS BROKERS ON BIKES EMBROIDERED ON THE BACK IS THE GROUP'S LOGO A STEER'S SKULL IN FRONT OF THE TRADITIONAL HARLEYDAVIDSON WINGS BUT MAKE NO MISTAKE SCOOTER HASTENS TO ADD THE LOGO ISN'T INTENDED TO CONJURE UP IMAGES OF THE MERRILL LYNCH BULL THE STEER SKULL IS JUST A COMMON DECORATION HERE IN THE DESERT HE SAYS HE ALSO DISMISSES THE NOTION THAT THE GROUP'S NAME HOLDS ANY RACIST CONNOTATIONS LYNCH MOBS WERE PROMINENT HERE IN THE WEST FOR CATTLE ROBBERS AND THIEVES IT WAS AN OBVIOUS CHOICE THESE WELLHEELED WEEKEND WARRIORS TRY TO GATHER AT LEAST ONCE A MONTH FOR A RIDE IN SEPTEMBER THEY ARE TAKING AN EIGHTHOUR TRIP TO ALBUQUERQUE WHERE THEY PLAN TO VISIT THE LOCAL MERRILL OFFICE OVERALL OFFICE REACTION TO THE GROUP HAS BEEN POSITIVE BUT DR LOCK STILL FEARS THAT SOME PEOPLE ARE MISSING THE POINT MOTORCYCLES CAN CARRY A STIGMA HE SAID BUT WE'RE JUST A BUNCH OF GUYS WHO WORK TOGETHER AND LIKE TO RIDE BIKES HOWEVER DON'T EXPECT NOISY ROAD RALLIES TO REPLACE CORPORATE GOLF OUTINGS ANY TIME SOON A MERRILL SPOKESWOMAN POINTS OUT THAT THE INVESTMENT COMPANY DOESN'T SANCTION THE MOB 9307300143 930730 WHO'S NEWS BERLITZ INTERNATIONAL INC BERLITZ INTERNATIONAL INC PRINCETON NJ THE LANGUAGEINSTRUCTION CONCERN PROMOTED THREE EXECUTIVES AS PART OF A REORGANIZATION SUSUMU KOJIMA 50 YEARS OLD SENIOR VICE PRESIDENT OF CORPORATE PLANNING AND A DIRECTOR WAS NAMED EXECUTIVE VICE PRESIDENT CORPORATE PLANNING ROBERT MINSKY 48 VICE PRESIDENT AND ALSO A DIRECTOR WAS NAMED EXECUTIVE VICE PRESIDENT AND CONTINUES