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diff --git a/nerv/examples/lmptb/PTBdata/ptb.test.txt b/nerv/examples/lmptb/PTBdata/ptb.test.txt new file mode 100644 index 0000000..8079cdf --- /dev/null +++ b/nerv/examples/lmptb/PTBdata/ptb.test.txt @@ -0,0 +1,3761 @@ + no it was n't black monday + but while the new york stock exchange did n't fall apart friday as the dow jones industrial average plunged N points most of it in the final hour it barely managed to stay this side of chaos + some circuit breakers installed after the october N crash failed their first test traders say unable to cool the selling panic in both stocks and futures + the N stock specialist firms on the big board floor the buyers and sellers of last resort who were criticized after the N crash once again could n't handle the selling pressure + big investment banks refused to step up to the plate to support the beleaguered floor traders by buying big blocks of stock traders say + heavy selling of standard & poor 's 500-stock index futures in chicago <unk> beat stocks downward + seven big board stocks ual amr bankamerica walt disney capital cities\/abc philip morris and pacific telesis group stopped trading and never resumed + the <unk> has already begun + the equity market was <unk> + once again the specialists were not able to handle the imbalances on the floor of the new york stock exchange said christopher <unk> senior vice president at <unk> securities corp + <unk> james <unk> chairman of specialists henderson brothers inc. it is easy to say the specialist is n't doing his job + when the dollar is in a <unk> even central banks ca n't stop it + speculators are calling for a degree of liquidity that is not there in the market + many money managers and some traders had already left their offices early friday afternoon on a warm autumn day because the stock market was so quiet + then in a <unk> plunge the dow jones industrials in barely an hour surrendered about a third of their gains this year <unk> up a 190.58-point or N N loss on the day in <unk> trading volume + <unk> trading accelerated to N million shares a record for the big board + at the end of the day N million shares were traded + the dow jones industrials closed at N + the dow 's decline was second in point terms only to the <unk> black monday crash that occurred oct. N N + in percentage terms however the dow 's dive was the <unk> ever and the sharpest since the market fell N or N N a week after black monday + the dow fell N N on black monday + shares of ual the parent of united airlines were extremely active all day friday reacting to news and rumors about the proposed $ N billion buy-out of the airline by an <unk> group + wall street 's takeover-stock speculators or risk arbitragers had placed unusually large bets that a takeover would succeed and ual stock would rise + at N p.m. edt came the <unk> news the big board was <unk> trading in ual pending news + on the exchange floor as soon as ual stopped trading we <unk> for a panic said one top floor trader + several traders could be seen shaking their heads when the news <unk> + for weeks the market had been nervous about takeovers after campeau corp. 's cash crunch spurred concern about the prospects for future highly leveraged takeovers + and N minutes after the ual trading halt came news that the ual group could n't get financing for its bid + at this point the dow was down about N points + the market <unk> + arbitragers could n't dump their ual stock but they rid themselves of nearly every rumor stock they had + for example their selling caused trading halts to be declared in usair group which closed down N N to N N delta air lines which fell N N to N N and <unk> industries which sank N to N N + these stocks eventually reopened + but as panic spread speculators began to sell blue-chip stocks such as philip morris and international business machines to offset their losses + when trading was halted in philip morris the stock was trading at N down N N while ibm closed N N lower at N + selling <unk> because of waves of automatic stop-loss orders which are triggered by computer when prices fall to certain levels + most of the stock selling pressure came from wall street professionals including computer-guided program traders + traders said most of their major institutional investors on the other hand sat tight + now at N one of the market 's post-crash reforms took hold as the s&p N futures contract had plunged N points equivalent to around a <unk> drop in the dow industrials + under an agreement signed by the big board and the chicago mercantile exchange trading was temporarily halted in chicago + after the trading halt in the s&p N pit in chicago waves of selling continued to hit stocks themselves on the big board and specialists continued to <unk> prices down + as a result the link between the futures and stock markets <unk> apart + without the <unk> of stock-index futures the barometer of where traders think the overall stock market is headed many traders were afraid to trust stock prices quoted on the big board + the futures halt was even <unk> by big board floor traders + it <unk> things up said one major specialist + this confusion effectively halted one form of program trading stock index arbitrage that closely links the futures and stock markets and has been blamed by some for the market 's big swings + in a stock-index arbitrage sell program traders buy or sell big baskets of stocks and offset the trade in futures to lock in a price difference + when the airline information came through it <unk> every model we had for the marketplace said a managing director at one of the largest program-trading firms + we did n't even get a chance to do the programs we wanted to do + but stocks kept falling + the dow industrials were down N points at N p.m. before the <unk> halt + at N p.m. at the end of the cooling off period the average was down N points + meanwhile during the the s&p trading halt s&p futures sell orders began <unk> up while stocks in new york kept falling sharply + big board chairman john j. phelan said yesterday the circuit breaker worked well <unk> + i just think it 's <unk> at this point to get into a debate if index arbitrage would have helped or hurt things + under another post-crash system big board president richard <unk> mr. phelan was flying to <unk> as the market was falling was talking on an <unk> hot line to the other exchanges the securities and exchange commission and the federal reserve board + he <unk> out at a high-tech <unk> center on the floor of the big board where he could watch <unk> on prices and pending stock orders + at about N p.m. edt s&p futures resumed trading and for a brief time the futures and stock markets started to come back in line + buyers stepped in to the futures pit + but the <unk> of s&p futures sell orders weighed on the market and the link with stocks began to fray again + at about N the s&p market <unk> to still another limit of N points down and trading was locked again + futures traders say the s&p was <unk> that the dow could fall as much as N points + during this time small investors began ringing their brokers wondering whether another crash had begun + at prudential-bache securities inc. which is trying to cater to small investors some <unk> brokers thought this would be the final <unk> + that 's when george l. ball chairman of the prudential insurance co. of america unit took to the internal <unk> system to declare that the plunge was only mechanical + i have a <unk> that this particular decline today is something more <unk> about less + it would be my <unk> to advise clients not to sell to look for an opportunity to buy mr. ball told the brokers + at merrill lynch & co. the nation 's biggest brokerage firm a news release was prepared <unk> merrill lynch comments on market drop + the release cautioned that there are significant differences between the current environment and that of october N and that there are still attractive investment opportunities in the stock market + however jeffrey b. lane president of shearson lehman hutton inc. said that friday 's plunge is going to set back relations with customers because it <unk> the concern of volatility + and i think a lot of people will <unk> on program trading + it 's going to bring the debate right back to the <unk> + as the dow average ground to its final N loss friday the s&p pit stayed locked at its <unk> trading limit + jeffrey <unk> of program trader <unk> investment group said N s&p contracts were for sale on the close the equivalent of $ N million in stock + but there were no buyers + while friday 's debacle involved mainly professional traders rather than investors it left the market vulnerable to continued selling this morning traders said + stock-index futures contracts settled at much lower prices than indexes of the stock market itself + at those levels stocks are set up to be <unk> by index arbitragers who lock in profits by buying futures when futures prices fall and simultaneously sell off stocks + but nobody knows at what level the futures and stocks will open today + the <unk> between the stock and futures markets friday will undoubtedly cause renewed debate about whether wall street is properly prepared for another crash situation + the big board 's mr. <unk> said our <unk> performance was good + but the exchange will look at the performance of all specialists in all stocks + obviously we 'll take a close look at any situation in which we think the <unk> obligations were n't met he said + see related story fed ready to <unk> big funds wsj oct. N N + but specialists complain privately that just as in the N crash the <unk> firms big investment banks that support the market by trading big blocks of stock stayed on the sidelines during friday 's <unk> + mr. phelan said it will take another day or two to analyze who was buying and selling friday + concerning your sept. N page-one article on prince charles and the <unk> it 's a few hundred years since england has been a kingdom + it 's now the united kingdom of great britain and northern ireland <unk> <unk> northern ireland scotland and oh yes england too + just thought you 'd like to know + george <unk> + ports of call inc. reached agreements to sell its remaining seven aircraft to buyers that were n't disclosed + the agreements bring to a total of nine the number of planes the travel company has sold this year as part of a restructuring + the company said a portion of the $ N million realized from the sales will be used to repay its bank debt and other obligations resulting from the currently suspended <unk> operations + earlier the company announced it would sell its aging fleet of boeing co. <unk> because of increasing maintenance costs + a consortium of private investors operating as <unk> funding co. said it has made a $ N million cash bid for most of l.j. hooker corp. 's real-estate and <unk> holdings + the $ N million bid includes the assumption of an estimated $ N million in secured liabilities on those properties according to those making the bid + the group is led by jay <unk> chief executive officer of <unk> investment corp. in <unk> and a. boyd simpson chief executive of the atlanta-based simpson organization inc + mr. <unk> 's company specializes in commercial real-estate investment and claims to have $ N billion in assets mr. simpson is a developer and a former senior executive of l.j. hooker + the assets are good but they require more money and management than can be provided in l.j. hooker 's current situation said mr. simpson in an interview + hooker 's philosophy was to build and sell + we want to build and hold + l.j. hooker based in atlanta is operating with protection from its creditors under chapter N of the u.s. bankruptcy code + its parent company hooker corp. of sydney australia is currently being managed by a court-appointed provisional <unk> + sanford <unk> chief executive of l.j. hooker said yesterday in a statement that he has not yet seen the bid but that he would review it and bring it to the attention of the creditors committee + the $ N million bid is estimated by mr. simpson as representing N N of the value of all hooker real-estate holdings in the u.s. + not included in the bid are <unk> teller or b. altman & co. l.j. hooker 's department-store chains + the offer covers the massive N <unk> forest fair mall in cincinnati the N <unk> <unk> fashion mall in columbia s.c. and the N <unk> <unk> town center mall in <unk> <unk> + the <unk> mall opened sept. N with a <unk> 's <unk> as its <unk> the columbia mall is expected to open nov. N + other hooker properties included are a <unk> office tower in <unk> atlanta expected to be completed next february vacant land sites in florida and ohio l.j. hooker international the commercial real-estate brokerage company that once did business as merrill lynch commercial real estate plus other shopping centers + the consortium was put together by <unk> <unk> the london-based investment banking company that is a subsidiary of security pacific corp + we do n't anticipate any problems in raising the funding for the bid said <unk> campbell the head of mergers and acquisitions at <unk> <unk> in an interview + <unk> <unk> is acting as the consortium 's investment bankers + according to people familiar with the consortium the bid was <unk> project <unk> a reference to the film <unk> in which a <unk> played by actress <unk> <unk> is saved from a <unk> businessman by a police officer named john <unk> + l.j. hooker was a small <unk> company based in atlanta in N when mr. simpson was hired to push it into commercial development + the company grew modestly until N when a majority position in hooker corp. was acquired by australian developer george <unk> currently hooker 's chairman + mr. <unk> <unk> to launch an ambitious but <unk> $ N billion acquisition binge that included <unk> teller and b. altman & co. as well as majority positions in merksamer jewelers a sacramento chain <unk> inc. the <unk> retailer and <unk> inc. the southeast department-store chain + eventually mr. simpson and mr. <unk> had a falling out over the direction of the company and mr. simpson said he resigned in N + since then hooker corp. has sold its interest in the <unk> chain back to <unk> 's management and is currently attempting to sell the b. altman & co. chain + in addition robert <unk> chief executive of the <unk> chain is seeking funds to buy out the hooker interest in his company + the merksamer chain is currently being offered for sale by first boston corp + reached in <unk> mr. <unk> said that he believes the various hooker <unk> can become profitable with new management + these are n't mature assets but they have the potential to be so said mr. <unk> + managed properly and with a long-term outlook these can become investment-grade quality properties + canadian <unk> production totaled N metric tons in the week ended oct. N up N N from the preceding week 's total of N tons statistics canada a federal agency said + the week 's total was up N N from N tons a year earlier + the <unk> total was N tons up N N from N tons a year earlier + the treasury plans to raise $ N million in new cash thursday by selling about $ N billion of 52-week bills and <unk> $ N billion of maturing bills + the bills will be dated oct. N and will mature oct. N N + they will be available in minimum denominations of $ N + bids must be received by N p.m. edt thursday at the treasury or at federal reserve banks or branches + as small investors <unk> their mutual funds with phone calls over the weekend big fund managers said they have a strong defense against any wave of withdrawals cash + unlike the weekend before black monday the funds were n't <unk> with heavy withdrawal requests + and many fund managers have built up cash levels and say they will be buying stock this week + at fidelity investments the nation 's largest fund company telephone volume was up sharply but it was still at just half the level of the weekend preceding black monday in N + the boston firm said <unk> redemptions were running at less than one-third the level two years ago + as of yesterday afternoon the redemptions represented less than N N of the total cash position of about $ N billion of fidelity 's stock funds + two years ago there were massive redemption levels over the weekend and a lot of fear around said c. bruce <unk> who runs fidelity investments ' $ N billion <unk> fund + this feels more like a <unk> deal + people are n't <unk> + the test may come today + friday 's stock market sell-off came too late for many investors to act + some shareholders have held off until today because any fund exchanges made after friday 's close would take place at today 's closing prices + stock fund redemptions during the N debacle did n't begin to <unk> until after the market opened on black monday + but fund managers say they 're ready + many have raised cash levels which act as a buffer against steep market declines + mario <unk> for instance holds cash positions well above N N in several of his funds + windsor fund 's john <unk> and mutual series ' michael price said they had raised their cash levels to more than N N and N N respectively this year + even peter lynch manager of fidelity 's $ N billion <unk> fund the nation 's largest stock fund built up cash to N N or $ N million + one reason is that after two years of monthly net redemptions the fund posted net inflows of money from investors in august and september + i 've let the money build up mr. lynch said who added that he has had trouble finding stocks he likes + not all funds have raised cash levels of course + as a group stock funds held N N of assets in cash as of august the latest figures available from the investment company institute + that was modestly higher than the N N and N N levels in august and september of N + also persistent redemptions would force some fund managers to dump stocks to raise cash + but a strong level of investor withdrawals is much more unlikely this time around fund managers said + a major reason is that investors already have sharply scaled back their purchases of stock funds since black monday + <unk> sales have rebounded in recent months but monthly net purchases are still running at less than half N levels + there 's not nearly as much <unk> said john <unk> chairman of vanguard group inc. a big valley forge pa. fund company + many fund managers argue that now 's the time to buy + vincent <unk> manager of the $ N billion wellington fund added to his positions in bristol-myers squibb woolworth and dun & bradstreet friday + and today he 'll be looking to buy drug stocks like eli lilly pfizer and american home products whose dividend yields have been bolstered by stock declines + fidelity 's mr. lynch for his part snapped up southern co. shares friday after the stock got <unk> + if the market drops further today he said he 'll be buying blue chips such as bristol-myers and kellogg + if they <unk> stocks like that he said it presents an opportunity that is the kind of thing you dream about + major mutual-fund groups said phone calls were <unk> at twice the normal weekend pace yesterday + but most investors were seeking share prices and other information + trading volume was only modestly higher than normal + still fund groups are n't taking any chances + they hope to avoid the <unk> phone lines and other <unk> that <unk> some fund investors in october N + fidelity on saturday opened its N <unk> investor centers across the country + the centers normally are closed through the weekend + in addition east coast centers will open at N edt this morning instead of the normal N + t. rowe price associates inc. increased its staff of phone representatives to handle investor requests + the <unk> group noted that some investors moved money from stock funds to money-market funds + but most investors seemed to be in an information mode rather than in a transaction mode said steven <unk> a vice president + and vanguard among other groups said it was adding more phone representatives today to help investors get through + in an unusual move several funds moved to calm investors with <unk> on their <unk> phone lines + we view friday 's market decline as offering us a buying opportunity as long-term investors a recording at <unk> & co. funds said over the weekend + the <unk> group had a similar recording for investors + several fund managers expect a rough market this morning before prices stabilize + some early selling is likely to stem from investors and portfolio managers who want to lock in this year 's fat profits + stock funds have averaged a staggering gain of N N through september according to lipper analytical services inc + <unk> <unk> who runs shearson lehman hutton inc. 's $ N million sector analysis portfolio predicts the market will open down at least N points on technical factors and some panic selling + but she expects prices to rebound soon and is telling investors she expects the stock market wo n't decline more than N N to N N from recent highs + this is not a major crash she said + nevertheless ms. <unk> said she was <unk> with phone calls over the weekend from nervous shareholders + half of them are really scared and want to sell she said but i 'm trying to talk them out of it + she added if they all were bullish i 'd really be upset + the backdrop to friday 's slide was <unk> different from that of the october N crash fund managers argue + two years ago unlike today the dollar was weak interest rates were rising and the market was very <unk> they say + from the investors ' standpoint institutions and individuals learned a painful lesson by selling at the lows on black monday said stephen boesel manager of the $ N million t. rowe price growth and income fund + this time i do n't think we 'll get a panic reaction + newport corp. said it expects to report <unk> earnings of between N cents and N cents a share somewhat below analysts ' estimates of N cents to N cents + the maker of scientific instruments and laser parts said orders fell below expectations in recent months + a spokesman added that sales in the current quarter will about equal the <unk> quarter 's figure when newport reported net income of $ N million or N cents a share on $ N million in sales + <unk> from the strike by N machinists union members against boeing co. reached air carriers friday as america west airlines announced it will postpone its new service out of houston because of delays in receiving aircraft from the seattle jet maker + peter <unk> vice president for planning at the phoenix ariz. carrier said in an interview that the work <unk> at boeing now entering its 13th day has caused some turmoil in our scheduling and that more than N passengers who were booked to fly out of houston on america west would now be put on other airlines + mr. <unk> said boeing told america west that the N it was supposed to get this thursday would n't be delivered until nov. N the day after the airline had been planning to <unk> service at houston with four daily flights including three <unk> to phoenix and one <unk> to las vegas + now those routes are n't expected to begin until jan + boeing is also supposed to send to america west another N <unk> aircraft as well as a N by year 's end + those too are almost certain to arrive late + at this point no other america west flights including its new service at san antonio texas newark n.j. and <unk> calif. have been affected by the delays in boeing deliveries + nevertheless the company 's reaction <unk> the <unk> effect that a huge manufacturer such as boeing can have on other parts of the economy + it also is sure to help the machinists put added pressure on the company + i just do n't feel that the company can really stand or would want a prolonged <unk> tom baker president of machinists ' district N said in an interview yesterday + i do n't think their customers would like it very much + america west though is a smaller airline and therefore more affected by the delayed delivery of a single plane than many of its competitors would be + i figure that american and united probably have such a hard time counting all the planes in their fleets they might not miss one at all mr. <unk> said + indeed a random check friday did n't seem to indicate that the strike was having much of an effect on other airline operations + southwest airlines has a boeing N set for delivery at the end of this month and expects to have the plane on time + it 's so close to completion boeing 's told us there wo n't be a problem said a southwest spokesman + a spokesman for amr corp. said boeing has assured american airlines it will deliver a N on time later this month + american is preparing to take delivery of another N in early december and N more next year and is n't anticipating any changes in that timetable + in seattle a boeing spokesman explained that the company has been in constant communication with all of its customers and that it was impossible to predict what further disruptions might be triggered by the strike + meanwhile supervisors and <unk> employees have been trying to finish some N aircraft mostly N and N jumbo jets at the company 's <unk> wash. plant that were all but completed before the <unk> + as of friday four had been delivered and a fifth plane a N was supposed to be <unk> out over the weekend to air china + no date has yet been set to get back to the bargaining table + we want to make sure they know what they want before they come back said doug hammond the federal mediator who has been in contact with both sides since the strike began + the investment community for one has been anticipating a <unk> resolution + though boeing 's stock price was battered along with the rest of the market friday it actually has risen over the last two weeks on the strength of new orders + the market has taken two views that the labor situation will get settled in the short term and that things look very <unk> for boeing in the long term said howard <unk> an analyst at <unk> j. lawrence inc + boeing 's shares fell $ N friday to close at $ N in composite trading on the new york stock exchange + but mr. baker said he thinks the earliest a pact could be struck would be the end of this month <unk> that the company and union may resume negotiations as early as this week + still he said it 's possible that the strike could last considerably longer + i would n't expect an immediate resolution to anything + last week boeing chairman frank <unk> sent striking workers a letter saying that to my knowledge boeing 's offer represents the best overall three-year contract of any major u.s. industrial firm in recent history + but mr. baker called the letter and the company 's offer of a N N wage increase over the life of the pact plus bonuses very weak + he added that the company <unk> the union 's resolve and the workers ' <unk> with being forced to work many hours overtime + in separate developments talks have broken off between machinists representatives at lockheed corp. and the <unk> calif. aerospace company + the union is continuing to work through its expired contract however + it had planned a strike vote for next sunday but that has been pushed back indefinitely + united auto workers local N which represents N workers at boeing 's helicopter unit in delaware county pa. said it agreed to extend its contract on a <unk> basis with a <unk> notification to cancel while it continues bargaining + the accord expired yesterday + and boeing on friday said it received an order from <unk> <unk> for four model N <unk> <unk> valued at a total of about $ N million + the planes long range versions of the <unk> <unk> will be delivered with <unk> & <unk> <unk> engines + <unk> & <unk> is a unit of united technologies inc + <unk> <unk> is based in amsterdam + a boeing spokeswoman said a delivery date for the planes is still being worked out for a variety of reasons but not because of the strike + <unk> <unk> contributed to this article + <unk> ltd. said its utilities arm is considering building new electric power plants some valued at more than one billion canadian dollars us$ N million in great britain and elsewhere + <unk> <unk> <unk> 's senior vice president finance said its <unk> canadian utilities ltd. unit is reviewing <unk> projects in eastern canada and conventional electric power generating plants elsewhere including britain where the british government plans to allow limited competition in electrical generation from private-sector suppliers as part of its privatization program + the projects are big + they can be c$ N billion plus mr. <unk> said + but we would n't go into them alone and canadian utilities ' equity stake would be small he said + <unk> we 'd like to be the operator of the project and a modest equity investor + our long suit is our proven ability to operate power plants he said + mr. <unk> would n't offer <unk> regarding <unk> 's proposed british project but he said it would compete for customers with two huge british power generating companies that would be formed under the country 's plan to <unk> its massive water and electric utilities + britain 's government plans to raise about # N billion $ N billion from the sale of most of its giant water and electric utilities beginning next month + the planned electric utility sale scheduled for next year is alone expected to raise # N billion making it the world 's largest public offering + under terms of the plan independent <unk> would be able to compete for N N of customers until N and for another N N between N and N + canadian utilities had N revenue of c$ N billion mainly from its natural gas and electric utility businesses in alberta where the company serves about N customers + there seems to be a move around the world to <unk> the generation of electricity mr. <unk> said and canadian utilities hopes to capitalize on it + this is a real thrust on our utility side he said adding that canadian utilities is also <unk> projects in <unk> countries though he would be specific + canadian utilities is n't alone in exploring power generation opportunities in britain in anticipation of the privatization program + we 're certainly looking at some power generating projects in england said bruce <unk> vice president corporate strategy and corporate planning with enron corp. houston a big natural gas producer and pipeline operator + mr. <unk> said enron is considering building <unk> power plants in the u.k. capable of producing about N <unk> of power at a cost of about $ N million to $ N million + pse inc. said it expects to report third earnings of $ N million to $ N million or N cents to N cents a share + in the year-ago quarter the designer and operator of <unk> and waste heat recovery plants had net income of $ N or four cents a share on revenue of about $ N million + the company said the improvement is related to additional <unk> facilities that have been put into operation + <unk> <unk> flights are $ N to paris and $ N to london + in a centennial journal article oct. N the fares were reversed + diamond <unk> offshore partners said it had discovered gas offshore louisiana + the well <unk> at a rate of N million cubic feet of gas a day through a N <unk> opening at <unk> between N and N feet + diamond <unk> is the operator with a N N interest in the well + diamond <unk> offshore 's stock rose N cents friday to close at $ N in new york stock exchange composite trading + <unk> & broad home corp. said it formed a $ N million limited partnership subsidiary to buy land in california suitable for residential development + the partnership <unk> & broad land development venture limited partnership is a N joint venture with a trust created by institutional clients of <unk> advisory corp. a unit of <unk> financial corp. a real estate advisory management and development company with offices in chicago and beverly hills calif + <unk> & broad a home building company declined to identify the institutional investors + the land to be purchased by the joint venture has n't yet received <unk> and other approvals required for development and part of <unk> & broad 's job will be to obtain such approvals + the partnership runs the risk that it may not get the approvals for development but in return it can buy land at wholesale rather than retail prices which can result in sizable savings said bruce <unk> president and chief executive officer of <unk> & broad + there are really very few companies that have adequate capital to buy properties in a raw state for cash + typically developers option property and then once they get the administrative approvals they buy it said mr. <unk> adding that he believes the joint venture is the first of its kind + we usually operate in that conservative manner + by setting up the joint venture <unk> & broad can take the more aggressive approach of buying raw land while avoiding the negative <unk> to its own balance sheet mr. <unk> said + the company is putting up only N N of the capital although it is responsible for providing management planning and processing services to the joint venture + this is one of the best ways to assure a pipeline of land to fuel our growth at a minimum risk to our company mr. <unk> said + when the price of plastics took off in N quantum chemical corp. went along for the ride + the timing of quantum 's chief executive officer john <unk> <unk> appeared to be nothing less than inspired because he had just increased quantum 's reliance on plastics + the company <unk> much of the chemical industry as annual profit grew <unk> in two years + mr. <unk> said of the boom it 's going to last a whole lot longer than anybody thinks + but now prices have <unk> and quantum 's profit is <unk> + some securities analysts are looking for no better than break-even results from the company for the third quarter compared with year-earlier profit of $ N million or $ N a share on sales of $ N million + the stock having lost nearly a quarter of its value since sept. N closed at $ N share down $ N in new york stock exchange composite trading friday + to a degree quantum represents the new times that have arrived for producers of the so-called commodity plastics that <unk> modern life + having just passed through one of the most profitable periods in their history these producers now see their prices eroding + pricing cycles to be sure are nothing new for plastics producers + and the financial decline of some looks steep only in comparison with the <unk> period that is just behind them + we were all wonderful heroes last year says an executive at one of quantum 's competitors + now we 're at the bottom of the <unk> + at quantum which is based in new york the trouble is magnified by the company 's heavy <unk> on plastics + once known as national <unk> & chemical corp. the company <unk> the wine and spirits business and <unk> more of its resources into plastics after mr. <unk> took the chief executive 's job in N + mr. <unk> N years old declined to be interviewed for this article but he has consistently argued that over the long haul across both the <unk> and the <unk> of the plastics market quantum will <unk> through its new direction + quantum 's lot is mostly tied to polyethylene <unk> used to make garbage bags milk <unk> <unk> toys and meat packaging among other items + in the u.s. polyethylene market quantum has claimed the largest share about N N + but its competitors including dow chemical co. union carbide corp. and several oil giants have much broader business interests and so are better <unk> against price swings + when the price of polyethylene moves a mere penny a pound quantum 's annual profit <unk> by about N cents a share provided no other <unk> are changing + in recent months the price of polyethylene even more than that of other commodity plastics has taken a dive + benchmark grades which still sold for as much as N cents a pound last spring have skidded to between N cents and N cents + meanwhile the price of <unk> the chemical building block of polyethylene has n't dropped nearly so fast + that <unk> <unk> quantum badly because its own plants cover only about half of its <unk> needs + by many accounts an early hint of a price rout in the making came at the start of this year + china which had been putting in huge orders for polyethylene abruptly halted them + <unk> that excess polyethylene would soon be <unk> around the world other buyers then bet that prices had peaked and so began to draw down inventories rather than order new product + kenneth mitchell director of dow 's polyethylene business says producers were surprised to learn how much inventories had swelled throughout the distribution chain as prices <unk> up + people were even <unk> bags he says + now producers hope prices have hit bottom + they recently announced increases of a few cents a pound to take effect in the next several weeks + no one knows however whether the new posted prices will stick once producers and customers start to <unk> + one <unk> is george <unk> a <unk> analyst at oppenheimer & co. and a bear on plastics stocks + noting others ' estimates of when price increases can be sustained he remarks some say october + some say november + i say N + he argues that efforts to firm up prices will be undermined by producers ' plans to expand production capacity + a quick turnaround is crucial to quantum because its cash requirements remain heavy + the company is trying to carry out a three-year $ N billion <unk> program started this year + at the same time its annual payments on long-term debt will more than double from a year ago to about $ N million largely because of debt taken on to pay a $ <unk> special dividend earlier this year + quantum described the payout at the time as a way for it to share the <unk> with its holders because its stock price was n't reflecting the huge profit increases + some analysts saw the payment as an effort also to <unk> takeover speculation + whether a cash crunch might eventually force the company to cut its quarterly dividend raised N N to N cents a share only a year ago has become a topic of intense speculation on wall street since mr. <unk> <unk> dividend questions in a sept. N meeting with analysts + some viewed his response that company directors review the dividend regularly as nothing more than the standard line from executives + but others came away thinking he had given something less than his usual <unk> performance + in any case on the day of the meeting quantum 's shares slid $ N to $ N in big board trading + on top of everything else quantum <unk> a disaster at its plant in morris ill + after an explosion <unk> the plant in june the company <unk> in september to within N hours of completing the <unk> process of <unk> it + then a second explosion occurred + two workers died and six remain in the hospital + this human toll adds the most painful <unk> yet to the sudden change in quantum 's fortunes + until this year the company had been steadily lowering its accident rate and picking up <unk> safety <unk> + a prolonged production halt at the plant could introduce another <unk> into quantum 's financial future + when a plant has just been running flat out to meet demand <unk> lost profit and thus claims under <unk> insurance is <unk> + but the numbers become <unk> and subject to <unk> between insured and insurer when demand is shifting + you say you could have sold x percent of this product and <unk> percent of that recalls <unk> <unk> an analyst at shearson lehman hutton who went through this exercise during his former career as a chemical engineer + and then you still have to negotiate + quantum hopes the morris plant where limited production got under way last week will resume full operation by year 's end + the plant usually accounts for N N to N N of quantum 's polyethylene production and N N of its <unk> production + not everything looks grim for quantum + the plant expansion should strengthen the company 's <unk> in the polyethylene business where market share is often taken through sheer capacity + by lifting <unk> production the expansion will also lower the company 's raw material costs + quantum is also tightening its grip on its one large business outside chemicals propane marketing + through a venture with its investment banker first boston corp. quantum completed in august an acquisition of <unk> inc. in a transaction valued at $ N billion + <unk> is the second-largest propane distributor in the u.s. + the largest suburban propane was already owned by quantum + still quantum has a crisis to get past right now + some analysts speculate the weakening stock may yet attract a suitor + the name <unk> in rumors is british petroleum co. which is looking to expand its polyethylene business in the u.s. + asked about a bid for quantum a <unk> spokesman says we pretty much have a policy of not commenting on rumors and i think that falls in that category + rjr nabisco inc. is <unk> its division responsible for buying network advertising time just a month after moving N of the group 's N employees to new york from atlanta + a spokesman for the new york-based food and tobacco giant taken private earlier this year in a $ N billion leveraged buy-out by kohlberg kravis roberts & co. confirmed that it is <unk> down the rjr nabisco broadcast unit and <unk> its N employees in a move to save money + the spokesman said rjr is discussing its <unk> plans with its two main advertising firms <unk> katz and <unk> <unk> + we found with the size of our media purchases that an ad agency could do just as good a job at significantly lower cost said the spokesman who declined to specify how much rjr spends on network television time + an executive close to the company said rjr is spending about $ N million on network television time this year down from roughly $ N million last year + the spokesman said the broadcast unit will be <unk> dec. N and the move wo n't affect rjr 's print radio and <unk> buying practices + the broadcast group had been based in new york until a year ago when rjr 's previous management moved it to atlanta the company 's headquarters before this summer + one employee with the group said rjr moved N employees of the group back to new york in september because there was supposed to be a future + he said the company hired three more buyers for the unit within the past two weeks wooing them from jobs with advertising agencies + the rjr spokesman said the company moved the N employees to new york last month because the group had then been in the midst of purchasing ad time for the networks ' <unk> season + the studies on closing the unit could n't be completed until now he said + the group 's president peter <unk> was n't in his office friday afternoon to comment + the u.s. which is <unk> its <unk> quotas is <unk> a larger share of its steel market to developing and newly industrialized countries which have relatively <unk> steel industries + meanwhile the u.s. has negotiated a significant cut in japan 's steel quota and made only a minor increase to the steel <unk> for the european community + brazil similar to mexico and south korea is expected to negotiate a somewhat bigger share of the u.s. market than it had under the previous five-year steel quotas which expired sept. N + brazil and venezuela are the only two countries that have n't completed steel talks with the u.s. for the year ending oct. N N + in recent years u.s. steelmakers have supplied about N N of the N million tons of steel used annually by the nation + of the remaining N N needed the <unk> negotiations <unk> about N N to foreign suppliers with the difference supplied mainly by canada which is n't included in the quota program + other countries that do n't have formal steel quotas with the u.s. such as taiwan sweden and argentina also have supplied steel + some of these countries have in recent years made informal agreements with the u.s. that are similar to quotas + the bush administration earlier this year said it would extend steel quotas known as voluntary restraint agreements until march N N + it also said it would use that <unk> year period to work toward an international consensus on <unk> up the international steel trade which has been <unk> managed subsidized and protected by governments + the u.s. termed its plan a trade <unk> program despite the fact that it is merely an extension + mexico which was one of the first countries to conclude its steel talks with the u.s. virtually doubled its quota to N N of the u.s. steel market from N N under the previous quotas + south korea which had N N under the previous quotas is set to get a small increase to about N N + that increase rises to slightly more than N N of the u.s. market if a joint <unk> steel project is included + meanwhile brazil is expected to increase its allowance from the N N share it has had in recent years + the ec and japan the u.s. 's largest steel suppliers have n't been filling their quotas to the full extent + the ec steel industry which has been coping with strong european demand has been supplying about N N of the u.s. market compared with recent quotas of about N N + japan has been shipping steel to total about N N of the u.s. market compared with a quota of N N + in the recent talks the ec had its quota increased about N tons to N N of the u.s. market from N N in N + but its quota has been as high as N N in N + japan however has agreed to cut its quota to about N N from N N previously + japan the ec brazil mexico and south korea provide about N N of the steel imported to the u.s. under the quota program + the balance is supplied by a host of smaller exporters such as australia and venezuela + the u.s. had about an extra N N of the domestic steel market to give to foreign suppliers in its quota talks + that was essentially made up of a N N increase in the overall quota program and N N from cutting japan 's allowance + negotiators from the white house trade office will repeat these quota negotiations next year when they will have another N N of the u.s. steel market to <unk> + these <unk> <unk> increases to the steel quota program are built into the bush administration 's <unk> program to give its negotiators leverage with foreign steel suppliers to try to get them to withdraw subsidies and <unk> from their own steel industries + <unk> inc. expects fiscal second-quarter earnings to trail N results but anticipates that several new products will lead to a much stronger performance in its second half + <unk> a telecommunications company had net income of $ N or five cents a share in its year-earlier second quarter ended sept. N + revenue totaled $ N million + george <unk> chairman and chief executive officer said in an interview that earnings in the most recent quarter will be about two cents a share on revenue of just under $ N million + the lower results mr. <unk> said reflect a 12-month decline in industry sales of privately owned pay telephones <unk> 's primary business + although mr. <unk> expects that line of business to strengthen in the next year he said <unk> will also benefit from moving into other areas + <unk> among those is the company 's <unk> into the public facsimile business mr. <unk> said + within the next year <unk> expects to place N fax machines made by <unk> in japan in hotels municipal buildings <unk> and other public <unk> around the country + <unk> will provide a credit-card reader for the machines to collect store and forward billing data + mr. <unk> said <unk> should realize a minimum of $ N of <unk> net earnings for each machine each month + <unk> has also developed an automatic call <unk> that will make further use of the company 's system for <unk> and handling credit-card calls and collect calls + automatic call processors will provide that system for virtually any telephone mr. <unk> said not just phones produced by <unk> + the company will also be producing a new line of convenience telephones which do n't accept coins for use in hotel <unk> office <unk> <unk> <unk> and similar <unk> + mr. <unk> estimated that the processors and convenience phones would produce about $ N of <unk> net earnings for each machine each month + britain 's retail price index rose N N in september from august and was up N N for the year the central statistical office said + <unk> medical inc. said it adopted a shareholders ' rights plan in which rights to purchase shares of common stock will be distributed as a dividend to shareholders of record as of oct. N + the company said the plan was n't adopted in response to any known offers for <unk> a maker and marketer of hospital products + the rights allow shareholders to purchase <unk> stock at a discount if any person or group acquires more than N N of the company 's common stock or <unk> a tender offer + measuring <unk> may soon be replaced by <unk> in the <unk> room + procter & gamble co. plans to begin testing next month a <unk> detergent that will require only a few <unk> per <unk> + the move stems from <unk> learned in japan where local competitors have had <unk> success with concentrated <unk> + it also marks p&g 's growing concern that its japanese rivals such as <unk> corp. may bring their <unk> to the u.s. + the cincinnati consumer-products giant got clobbered two years ago in japan when <unk> introduced a powerful detergent called attack which quickly won a N N stake in the japanese markets + they do n't want to get caught again says one industry <unk> + retailers in phoenix ariz. say p&g 's new <unk> detergent to be called <unk> with color guard will be on shelves in that market by early november + a p&g spokeswoman confirmed that shipments to phoenix started late last month + she said the company will study results from this market before expanding to others + <unk> are n't entirely new for p&g + the company introduced a <unk> <unk> <unk> in japan after watching the success of attack + when attack hit the shelves in N p&g 's share of the japanese market fell to about N N from more than N N + with the help of <unk> <unk> p&g 's share is now estimated to be N N + while the japanese have embraced the compact packaging and convenience of concentrated products the true test for p&g will be in the $ N billion u.s. detergent market where growth is slow and <unk> have gained <unk> over <unk> + the company may have chosen to market the product under the <unk> name since it 's already expanded its <unk> tide into N different <unk> including this year 's big hit tide with <unk> + with <unk> however it is n't always easy to persuade consumers that less is more many people tend to dump too much detergent into the <unk> machine <unk> that it takes a cup of <unk> to really clean the <unk> + in the early 1980s p&g tried to launch here a concentrated detergent under the <unk> brand name that it markets in europe + but the product which was n't as concentrated as the new <unk> <unk> in a market test in denver and was dropped + p&g and others also have tried repeatedly to hook consumers on detergent and fabric <unk> <unk> in <unk> but they have n't sold well despite the convenience + but p&g contends the new <unk> is a unique formula that also offers an <unk> that prevents colors from <unk> + and retailers are expected to <unk> the product in part because it will take up less shelf space + when shelf space was cheap bigger was better says <unk> <unk> an analyst at salomon <unk> + but with so many brands <unk> for space that 's no longer the case + if the new <unk> sells well the trend toward smaller packaging is likely to accelerate as competitors follow with their own <unk> + then retailers will probably push the <unk> brands out altogether he says + competition is bound to get tougher if <unk> <unk> a product like attack in the u.s. + to be sure <unk> would n't have an easy time taking u.s. market share away from the mighty p&g which has about N N of the market + <unk> officials previously have said they are interested in selling <unk> in the u.s. but so far the company has focused on acquisitions such as last year 's purchase of andrew <unk> co. a cincinnati <unk> maker + it also has a <unk> facility in california + some believe p&g 's interest in a <unk> detergent goes beyond the concern for the japanese + this is something p&g would do with or without <unk> says mr. <unk> + with economic tension between the u.s. and japan worsening many japanese had feared last week 's visit from u.s. trade representative carla hills + they expected a new <unk> of demands that japan do something quickly to reduce its trade surplus with the u.s. + instead they got a discussion of the need for the u.s. and japan to work together and of the importance of the long-term view + mrs. hills ' first trip to japan as america 's chief trade negotiator had a completely different tone from last month 's visit by commerce secretary robert a. mosbacher + mr. mosbacher called for concrete results by next spring in negotiations over fundamental japanese business practices that supposedly inhibit free trade + he said such results should be <unk> in dollars and cents in reducing the u.s. trade deficit with japan + but mrs. hills speaking at a breakfast meeting of the american chamber of commerce in japan on saturday stressed that the objective is not to get definitive action by spring or summer it is rather to have a blueprint for action + she added that she expected perhaps to have a down payment some small step to convince the american people and the japanese people that we 're moving in <unk> + how such remarks translate into policy wo n't become clear for months + american and japanese officials offered several theories for the difference in approach <unk> mr. mosbacher and mrs. hills + many called it simply a contrast in styles + but some saw it as a classic negotiating <unk> + others said the bush administration may feel the rhetoric on both sides is getting out of hand + and some said it reflected the growing debate in washington over pursuing free trade with japan <unk> some kind of managed trade + asked to compare her visit to mr. mosbacher 's mrs. hills replied i did n't hear every word he spoke but as a general proposition i think we have a very consistent trade strategy in the bush administration + yet more than one american official who sat in with her during three days of talks with japanese officials said her tone often was surprisingly <unk> + i think my line has been very consistent mrs. hills said at a news conference saturday afternoon + i am painted sometimes as <unk> perhaps because i have a <unk> list of statutes to implement + i do n't feel very <unk> + i do n't feel either hard or soft + i feel committed to the program of opening markets and expanding trade + when she met the local press for the first time on friday mrs. hills firmly reiterated the need for progress in removing barriers to trade in forest products <unk> and <unk> three areas targeted under the <unk> N provision of the N trade bill + she <unk> <unk> business practices that the u.s. government has identified + but her main thrust was to promote the importance of world-wide free trade and open competition + she said the trade <unk> was mainly due to <unk> factors and should n't be <unk> by setting <unk> targets + at her news conference for japanese reporters one economics journalist <unk> up the japanese sense of relief + my impression was that you would be a scary old lady he said drawing a few nervous <unk> from his colleagues + but i am relieved to see that you are beautiful and <unk> and <unk> and a person of integrity + mrs. hills ' remarks did raise questions at least among some u.s. officials about what exactly her stance is on u.s. access to the japanese semiconductor market + the u.s. share of the japanese market has been stuck around N N for years + many americans have interpreted a N agreement as <unk> u.s. companies a N N share by N but the japanese have denied making any such promise + at one of her news conferences mrs. hills said i believe we can do much better than N N + but she stressed i am against managed trade + i will not enter into an agreement that <unk> to a percentage of the market + traditional industries inc. said it expects to report a net loss for the fourth quarter that ended june N and is seeking new financing + the seller of photographic products and services said it is considering a number of financing alternatives including seeking increases in its credit lines + traditional declined to estimate the amount of the loss and would n't say if it expects to show a profit for the year + in the year ended june N N traditional reported net income of $ N million or $ N a share + the company did n't break out its fourth-quarter results + in the latest nine months net income was $ N million or $ N a share on revenue of $ N million + separately the company said it would file a delayed <unk> report with the securities and exchange commission within approximately N days + it said the delay resulted from difficulties in <unk> its accounting of a settlement with the federal trade commission + under an agreement filed in federal court in august to settle ftc objections to some traditional sales practices traditional said it would establish a $ N trust fund to provide refunds to certain customers + information international inc. said it was sued by a buyer of its computerized <unk> system alleging that the company failed to correct deficiencies in the system + a spokesman for information international said the lawsuit by two units of morris communications corp. seeks <unk> of the system 's about $ N million purchase price and cancellation of a software license provided by the morris units to information international for alleged failure to pay royalties + information international said it believes that the complaints filed in federal court in georgia are without merit + closely held morris communications is based in <unk> <unk> + the units that filed the suit are <unk> newspapers corp. and florida publishing co + <unk> corp. completed the sale of its a. <unk> & co. subsidiary a men 's luxury <unk> to <unk> investments + terms were n't disclosed + as <unk> 's core business of <unk> retailing grows a small subsidiary that is <unk> unrelated becomes a difficult <unk> said <unk> <unk> president of the parent in a statement + a spokeswoman said <unk> operates a total of seven stores in the u.s. and overseas + <unk> operates N <unk> apparel stores in the u.s. + the oil industry 's <unk> profits could <unk> through the rest of the year + major oil companies in the next few days are expected to report much less robust earnings than they did for the third quarter a year ago largely reflecting deteriorating chemical prices and gasoline profitability + the gasoline picture may improve this quarter but chemicals are likely to remain weak industry executives and analysts say reducing chances that profits could equal their year-earlier performance + the industry is seeing a softening somewhat in volume and certainly in price in petrochemicals glenn cox president of phillips petroleum co. said in an interview + that change will obviously impact third and fourth quarter earnings for the industry in general he added + he did n't forecast phillips 's results + but securities analysts say phillips will be among the companies <unk> by weak chemical prices and will probably post a drop in third-quarter earnings + so too many analysts predict will exxon corp. chevron corp. and amoco corp + typical is what happened to the price of <unk> a major commodity chemical produced in vast amounts by many oil companies + it has plunged N N since july to around N cents a pound + a year ago <unk> sold for N cents <unk> at about N cents last december + a big reason for the chemical price retreat is <unk> + beginning in <unk> prices began accelerating as a growing u.s. economy and the weak dollar spurred demand + companies added capacity <unk> + now greatly increased supplies are on the market while the dollar is stronger and domestic economic growth is slower + third-quarter profits from gasoline were weaker + refining margins were so good in the third quarter of last year and generally not very good this year said william <unk> a securities analyst at first boston corp + oil company refineries ran flat out to prepare for a robust holiday driving season in july and august that did n't <unk> + the excess supply pushed gasoline prices down in that period + in addition crude oil prices were up some from a year earlier further <unk> profitability + refiners say margins picked up in september and many industry officials believe gasoline profits will rebound this quarter though still not to the level of N 's fourth quarter + during the N second half many companies posted record gasoline and chemical profits + crude oil production may turn out to be the most surprising element of companies ' earnings this year + prices averaging roughly $ N a barrel higher in the third quarter than a year earlier have stayed well above most companies ' expectations + demand has been much stronger than anticipated and it typically <unk> in the fourth quarter + we could see higher oil prices this year said <unk> <unk> an analyst at painewebber inc + that will translate into sharply higher production profits particularly compared with last year when oil prices steadily fell to below $ N a barrel in the fourth quarter + while oil prices have been better than expected natural gas prices have been worse + in the third quarter they averaged about N N less than they were in N + the main reason remains weather + last summer was notable for a heat wave and drought that caused utilities to <unk> more natural gas to feed increased electrical demand from air <unk> use + this summer on the other hand had <unk> weather than usual + we 've been very disappointed in the performance of natural gas prices said mr. cox phillips 's president + the lagging gas price is not going to assist fourth quarter performance as many had expected + going into the fourth quarter natural gas prices are anywhere from N N to N N lower than a year earlier + for instance natural gas currently produced along the gulf coast is selling on the spot market for around $ N a thousand cubic feet down N N from $ N a thousand cubic feet a year ago + the bush administration trying to blunt growing demands from western europe for a <unk> of controls on exports to the soviet bloc is questioning whether italy 's <unk> c. olivetti & co. supplied <unk> valuable technology to the soviets + most of the western european members of <unk> committee on <unk> export controls the <unk> forum through which the u.s. and its allies <unk> their <unk> policies are expected to argue for more liberal export rules at a meeting to be held in paris oct. N and N + they plan to press specifically for a <unk> of rules governing exports of machine tools computers and other high-technology products + but the bush administration says it wants to see evidence that all cocom members are <unk> fully with existing <unk> procedures before it will support further <unk> + to make its point it is challenging the italian government to explain reports that olivetti may have supplied the soviet union with sophisticated computer-driven devices that could be used to build parts for combat aircraft + the london sunday times which first reported the u.s. concerns cited a u.s. intelligence report as the source of the allegations that olivetti exported $ N million in <unk> <unk> flexible manufacturing systems to the soviet aviation industry + olivetti reportedly began shipping these tools in N + a state department spokesman acknowledged that the u.s. is discussing the allegations with the italian government and cocom but declined to confirm any details + italian president <unk> <unk> promised a quick investigation into whether olivetti broke cocom rules + president bush called his attention to the matter during the italian leader 's visit here last week + olivetti has denied that it violated cocom rules <unk> that the reported shipments were properly licensed by the italian authorities + although the <unk> of these sales is still an open question the disclosure could n't be better <unk> to support the position of <unk> <unk> in the pentagon and the intelligence community + it seems to me that a story like this breaks just before every important cocom meeting said a washington lobbyist for a number of u.s. computer companies + the bush administration has sent <unk> signals about its <unk> policies reflecting <unk> divisions among several competing agencies + last summer mr. bush moved the administration in the direction of gradual <unk> when he told a north atlantic treaty organization meeting that he would allow some exceptions to the cocom <unk> of strategic goods + but more recently the pentagon and the commerce department openly <unk> over the extent to which cocom should <unk> exports of personal computers to the bloc + however these agencies generally agree that the west should be cautious about any further <unk> + there 's no evidence that the soviet program to illegally acquire western technology has diminished said a state department spokesman + salomon brothers international ltd. a british subsidiary of salomon inc. announced it will issue warrants on shares of hong kong telecommunications ltd + the move closely follows a similar offer by salomon of warrants for shares of <unk> & shanghai banking corp + under the latest offer hk$ N million us$ N million of three-year warrants will be issued in london each giving buyers the right to buy one hong kong telecommunications share at a price to be determined friday + the N million warrants will be priced at hk$ N each and are expected to carry a premium to the share price of about N N + in trading on the stock exchange of hong kong the shares closed wednesday at hk$ N each + at this price the shares would have to rise above hk$ N for subscribers to salomon 's issue to profitably convert their warrants + while hong kong companies have in the past issued warrants on their own shares salomon 's warrants are the first here to be issued by a third party + salomon will cover the warrants by buying sufficient shares or options to purchase shares to cover its entire position + bankers said warrants for hong kong stocks are attractive because they give foreign investors wary of volatility in the colony 's stock market an opportunity to buy shares without taking too great a risk + the hong kong telecommunications warrants should be attractive to buyers in europe the bankers added because the group is one of a handful of blue-chip stocks on the hong kong market that has international appeal + financial corp. of santa barbara filed suit against former stock <unk> ivan f. boesky and drexel burnham lambert inc. charging they <unk> the thrift by <unk> their relationship when <unk> it to buy $ N million in high-yield high-risk junk bonds + in a suit filed in federal court thursday the s&l alleged that a disproportionate number of the bonds it purchased in N declined in value + financial corp. purchased the bonds the suit alleged after mr. boesky and drexel negotiated an agreement for <unk> hotels to purchase a N N stake in the thrift for about $ N million + <unk> hotels was controlled by mr. boesky who currently is serving a prison term for securities violations + officials at drexel said they had n't seen the suit and thus could n't comment + in addition to $ N million <unk> damages the suit seeks $ N million in punitive damages + also named in the suit is ivan f. boesky corp. and <unk> corp. the successor company to <unk> hotels + <unk> officials could n't be located + financial corp. said it agreed to buy the bonds after a representative of ivan f. boesky corp. visited it in november N and said financial corp. could improve its financial condition by purchasing the bonds + shortly before the visit mr. boesky and drexel <unk> had met with financial corp. officials and had signed a letter of intent to acquire the N N stake in the company + however the agreement was canceled in june N + financial corp. purchased the bonds in at least N different transactions in N and since then has realized $ N million in losses on them the company said + ideal basic industries inc. said its directors reached an agreement in principle calling for <unk> north america inc. to combine its north american cement holdings with ideal in a transaction that will leave ideal 's minority shareholders with N N of the combined company + <unk> the north american holding company of swiss concern <unk> financiere <unk> ltd. previously proposed combining its N N stake in st. lawrence cement inc. and its N N stake in <unk> cement co. with its N N stake in ideal + but <unk> 's first offer would have given ideal 's other shareholders about N N of the combined company + ideal 's directors rejected that offer although they said they endorsed the merger proposal + under the agreement <unk> will own N N of the combined company + ideal 's current operations will represent about N N of the combined company + the transaction is subject to a definitive agreement and approval by ideal shareholders + ideal said it expects to complete the transaction early next year + while corn and soybean prices have slumped well below their <unk> <unk> of N wheat prices remain <unk> high + and they 're likely to stay that way for months to come analysts say + for one thing even with many farmers <unk> more winter wheat this year than last tight wheat supplies are likely to support prices well into N the analysts say + and if rain does n't fall soon across many of the great plains ' <unk> areas yields in the crop now being planted could be reduced further <unk> supplies + also supporting prices are expectations that the soviet union will place substantial buying orders over the next few months + by next may N stocks of u.s. wheat to be carried over into the next season before the winter wheat now being planted is <unk> are projected to drop to N million <unk> + that would be the lowest level since the early 1970s + stocks were N million <unk> on may N of this year + in response to <unk> domestic supplies agriculture secretary <unk> <unk> last month said the u.s. government would slightly increase the number of acres farmers can plant in wheat for next year and still qualify for federal support payments + the government estimates that the new plan will boost production next year by about N million <unk> + it now estimates production for next year at just under N billion <unk> compared with this year 's estimated N billion and a <unk> N billion in N + but the full effect on prices of the winter wheat now being planted wo n't be felt until the second half of next year + until then limited stocks are likely to keep prices near the $ <unk> level analysts say + on the chicago board of trade friday wheat for december delivery settled at $ N a bushel unchanged + in theory at least tight supplies next spring could leave the wheat futures market susceptible to a <unk> squeeze said daniel <unk> a futures analyst with <unk> co. in chicago + such a situation can <unk> havoc as was shown by the emergency that developed in soybean futures trading this summer on the chicago board of trade + in july the <unk> ordered <unk> <unk> s.p a. to liquidate futures positions equal to about N million <unk> of soybeans + the exchange said it feared that some members would n't be able to find enough soybeans to deliver and would have to default on their <unk> obligation to the italian conglomerate which had refused requests to reduce its holdings + <unk> has denied it was trying to manipulate the soybean futures market + <unk> hot dry weather across large portions of the great plains and in <unk> areas in washington and oregon is threatening to reduce the yield from this season 's winter wheat crop said <unk> leslie a futures analyst and head of leslie analytical in chicago + for example in the oklahoma <unk> N N or more of the <unk> is short of <unk> + that figure <unk> to about N N in <unk> portions of kansas he said + the soviet union has n't given any clear indication of its wheat purchase plans but many analysts expect moscow to place sizable orders for u.s. wheat in the next few months further supporting prices + wheat prices will increasingly <unk> off of soviet demand in coming weeks predicted richard <unk> vice president research for <unk> inc. in chicago + looking ahead to other commodity markets this week + orange <unk> traders will be watching to see how long and how far the price decline that began friday will go + late thursday after the close of trading the market received what would normally have been a bullish u.s. department of agriculture estimate of the N florida orange crop + it was near the low range of estimates at N million <unk> boxes compared with N million boxes last season + however as expected brazil waited for the crop estimate to come out and then cut the export price of its <unk> concentrate to about $ N a pound from around $ N + friday 's <unk> selling of futures contracts erased whatever supportive effect the u.s. report might have had and sent the november orange <unk> contract down as much as N cents a pound at one time + it settled with a loss of N cents at $ N a pound + brazilian <unk> after a delay caused by drought at the start of its crop season is beginning to arrive in the u.s. in large quantities + brazil wants to stimulate demand for its product which is going to be in <unk> supply + the price cut one analyst said appeared to be aimed even more at europe where consumption of brazilian <unk> has fallen + it 's a <unk> product and the strong dollar has made it more expensive in europe the analyst said + new york futures prices have dropped significantly from more than $ N a pound at midyear + barring a cold <unk> or other crop problems in the growing areas downward pressure on prices is likely to continue into january when <unk> and processing of <unk> in florida reach their peak the analyst said + energy + although some analysts look for profit-taking in the wake of friday 's leap in crude oil prices last week 's rally is generally expected to continue this week + i would continue to look for a stable crude market at least in futures trading said william <unk> an energy futures broker with <unk> & co + friday capped a week of steadily rising crude oil prices in both futures and spot markets + on the new york mercantile exchange west texas intermediate crude for november delivery finished at $ N a barrel up N cents on the day + on european markets meanwhile spot prices of north sea <unk> were up N to N cents a barrel + this market still wants to go higher said <unk> <unk> a first vice president at shearson lehman hutton inc + he predicted that the november contract will reach $ N a barrel or more on the new york mercantile exchange + there has been little news to account for such <unk> in the oil markets + analysts generally cite a lack of bearish developments as well as rumors of a possible tightening of supplies of some fuels and <unk> + there also are <unk> reports that the soviet union is having difficulties with its oil exports and that <unk> has about reached its production limit and ca n't produce as much as it could sell + many traders <unk> a tightening of near-term supplies particularly of high-quality <unk> such as those produced in the north sea and in <unk> + if a hostile <unk> emerges for saatchi & saatchi co. <unk> charles and maurice saatchi will lead a management buy-out attempt an official close to the company said + financing for any takeover attempt may be <unk> in the wake of friday 's stock-market sell-off in new york and turmoil in the junk-bond market + but the beleaguered british advertising and consulting giant which last week named a new chief executive officer to replace maurice saatchi has been the subject of intense takeover speculation for weeks + last week saatchi 's largest shareholder <unk> asset management said it had been approached by one or more third parties interested in a possible restructuring + and carl spielvogel chief executive officer of saatchi 's big backer spielvogel bates advertising unit said he had offered to lead a management buy-out of the company but was rebuffed by charles saatchi + mr. spielvogel said he would n't launch a hostile bid + the executive close to saatchi & saatchi said that if a bidder came up with a <unk> high offer a crazy offer which saatchi knew it could n't beat it would have no choice but to recommend it to shareholders + but otherwise it would undoubtedly come back with an offer by management + the executive said any buy-out would be led by the current board whose chairman is maurice saatchi and whose strategic <unk> force is believed to be charles saatchi + mr. spielvogel is n't part of the board nor are any of the other heads of saatchi 's big <unk> ad agencies + the executive did n't name any price but securities analysts have said saatchi would fetch upward of $ N billion + the executive denied speculation that saatchi was bringing in the new chief executive officer only to clean up the company financially so that the brothers could lead a buy-back + that speculation <unk> friday as industry executives <unk> the appointment of the new chief executive robert <unk> who joins saatchi and becomes a member of its board on jan. N + mr. <unk> formerly chief executive of the pharmaceutical research firm <unk> international inc. has a reputation as a <unk> financial manager and will be charged largely with <unk> saatchi 's poor financial state + asked about the speculation that mr. <unk> has been hired to <unk> the way for a buy-out by the brothers the executive replied that is n't the reason dreyfus has been brought in + he was brought in to turn around the company + separately several saatchi agency clients said they believe the company 's management <unk> will have little affect on them + it has n't had any impact on us nor do we expect it to said a spokeswoman for miller brewing co. a major client of backer spielvogel + john <unk> director of advertising at painewebber inc. a saatchi & saatchi advertising client said we have no problem with the announcement because we do n't know what change it 's going to bring about + we are n't going to change agencies because of a change in london + executives at backer spielvogel client <unk> inc. as well as at saatchi client <unk> lighting co. also said they saw no effect + executives at prudential-bache securities inc. a backer spielvogel client that is reviewing its account declined comment + mr. spielvogel had said that prudential-bache was prepared to finance either a management buy-out and restructuring or a buy-out of backer spielvogel alone led by him + ad notes + new account + california 's <unk> federal bank awarded its $ N million to $ N million account to the los angeles office of <unk> group 's <unk> agency + the account was previously handled by davis ball & <unk> advertising inc. a los angeles agency + account review + royal crown <unk> co. has ended its relationship with the boston office of hill <unk> <unk> <unk> + the account had billed about $ N million in N according to leading national advertisers + <unk> plea + as expected young & rubicam inc. along with two senior executives and a former employee pleaded not guilty in federal court in new haven conn. to conspiracy and racketeering charges + the government has charged that they <unk> <unk> officials to win the jamaica tourist board ad account in N + a spokesman for the u.s. attorney 's office said <unk> proceedings are just beginning for the other two defendants in the case eric anthony <unk> former <unk> tourism minister and <unk> businessman arnold <unk> jr + korean agency + the <unk> group and bozell inc. agreed to establish a joint venture advertising agency in south korea + bozell <unk> corp. as the new agency will be called will be based in seoul and is N N owned by <unk> and N N owned by bozell + <unk> already owns korea first advertising co. that country 's largest agency + bozell joins backer spielvogel bates and ogilvy group as u.s. agencies with interests in korean agencies + citing a payment from a supplier and strong sales of certain <unk> products <unk> corp. said earnings and revenue jumped in its second quarter ended sept. N + the maker of <unk> products said net income rose to $ N million or N cents a share from year-earlier net of $ N million or five cents a share + revenue soared to $ N million from $ N million + <unk> said its results were boosted by $ N million in payments received from a supplier for a certain line of products that <unk> is n't going to sell anymore + <unk> said effects from <unk> the line may have a positive effect on future earnings and revenue + a spokeswoman would n't elaborate but the company said the discontinued product has never been a major source of revenue or profit + <unk> <unk> benefited from robust sales of products that store data for high-end personal computers and computer workstations + in the fiscal first half net was $ N million or N cents a share up from the year-earlier $ N million or N cents a share + revenue rose to $ N million from $ N million + robert g. <unk> N years old was elected a director of this provider of advanced technology systems and services increasing the board to eight members + he retired as senior vice president finance and administration and chief financial officer of the company oct. N + southmark corp. said that it filed part of its <unk> report with the securities and exchange commission but that the filing does n't include its <unk> financial statements and related information + the real estate and thrift concern operating under bankruptcy-law proceedings said it told the sec it could n't provide financial statements by the end of its first extension without <unk> burden or expense + the company asked for a <unk> extension sept. N when the financial reports were due + southmark said it plans to <unk> its <unk> to provide financial results as soon as its audit is completed + alan <unk> N years old was named chairman of this <unk> of prescription claims succeeding thomas w. field jr. N who resigned last month + mr. field also had been chairman of <unk> corp. resigning that post after a dispute with the board over corporate strategy + mr. <unk> is executive vice president and chief financial officer of <unk> and will continue in those roles + pcs also named <unk> r. <unk> N executive vice president at <unk> as a director filling the seat vacated by mr. field + messrs. <unk> and <unk> are directors of <unk> which has an N N stake in pcs + <unk> products inc. said a u.s. district court in boston ruled that a challenge by <unk> to the <unk> of a u.s. patent held by <unk> inc. was without merit + <unk> based in <unk> sweden had charged in a lawsuit against <unk> that <unk> 's <unk> product line <unk> on the <unk> patent + the patent is related to <unk> acid a <unk> extract used in eye surgery + in its lawsuit <unk> is seeking unspecified damages and a preliminary injunction to block <unk> from selling the <unk> products + a <unk> spokesman said the products contribute about a third of <unk> 's sales and N N to N N of its earnings + in the year ended aug. N N <unk> earned $ N million or N cents a share on sales of $ N million + <unk> said the court 's ruling was issued as part of a <unk> trial in the <unk> proceedings and concerns only one of its defenses in the case + it said it is considering all of its options in light of the decision including a possible appeal + the <unk> company added that it plans to <unk> its other defenses against <unk> 's lawsuit including the claim that it has n't infringed on <unk> 's patent + <unk> said that the court scheduled a conference for next monday to set a date for proceedings on <unk> 's motion for a preliminary injunction + newspaper publishers are reporting mixed third-quarter results aided by favorable newsprint prices and hampered by flat or declining advertising <unk> especially in the northeast + adding to <unk> in the industry seasonal retail ad spending patterns in newspapers have been upset by shifts in ownership and general <unk> within the retail industry + in new york the <unk> teller and b. altman & co. department stores have filed for protection from creditors under chapter N of the federal bankruptcy code while the r.h. macy & co. bloomingdale 's and saks fifth avenue department-store chains are for sale + many papers throughout the country are also faced with a slowdown in <unk> spending a booming category for newspapers in recent years + until recently industry analysts believed <unk> in retail ad spending had <unk> out and would in fact increase in this year 's third and fourth quarters + all bets are off analysts say because of the shifting ownership of the retail chains + improved paper prices will help offset weakness in <unk> but the retailers ' problems have affected the amount of ad <unk> they usually run said edward j. <unk> industry analyst for salomon brothers inc + retailers are just in disarray + for instance <unk> co. posted an N N gain in net income as total ad pages dropped at usa today but advertising revenue rose because of a higher circulation rate base and increased rates + <unk> 's N daily and N <unk> newspapers reported a N N increase in advertising and circulation revenue + total advertising <unk> was modestly lower as <unk> volume increased while there was softer demand for retail and national ad <unk> said john <unk> <unk> 's chief executive officer + at usa today ad pages totaled N for the quarter down N N from the N period which was helped by increased ad spending from the summer olympics + while usa today 's total paid ad pages for the year to date totaled N a decrease of N N from last year the paper 's ad revenue increased N N in the quarter and N N in the nine months + in the nine months <unk> 's net rose N N to $ N million or $ N a share from $ N million or $ N a share + revenue gained N N to $ N billion from $ N billion + at dow jones & co. third-quarter net income fell N N from the year-earlier period + net fell to $ N million or N cents a share from $ N million or N cents a share + the year-earlier period included a one-time gain of $ N million or four cents a share + revenue gained N N to $ N million from $ N million + the drop in profit reflected in part continued softness in financial advertising at the wall street journal and barron 's magazine + ad <unk> at the journal fell N N in the third quarter + affiliated publications inc. reversed a year-earlier third quarter net loss + the publisher of the boston globe reported net of $ N million or N cents a share compared with a loss of $ N million or N cents a share for the third quarter in N + william o. taylor the parent 's chairman and chief executive officer said earnings continued to be hurt by softness in ad volume at the boston newspaper + third-quarter profit estimates for several companies are being strongly affected by the price of newsprint which in the last two years has had several price increases + after a supply crunch caused prices to rise N N since N to $ N a metric ton analysts are encouraged because they do n't expect a price increase for the rest of this year + companies with daily newspapers in the northeast will need the stable newsprint prices to ease damage from weak ad <unk> + mr. <unk> at salomon brothers said he estimates that times mirror co. 's earnings were down for the third quarter because of soft advertising levels at its long island <unk> and hartford <unk> newspapers + trouble on the east coast was likely offset by improved ad <unk> at the los angeles times which this week also unveiled a <unk> + new york times co. is expected to report lower earnings for the third quarter because of continued weak advertising levels at its flagship new york times and deep discounting of newsprint at its affiliate forest products group + times co. 's regional daily newspapers are holding up well but there is little sign that things will improve in the new york market said alan <unk> an analyst with shearson lehman hutton + washington post co. is expected to report improved earnings largely because of increased cable revenue and publishing revenue helped by an improved retail market in the washington area + according to analysts profits were also helped by successful cost-cutting measures at newsweek + the <unk> has faced heightened competition from rival time magazine and a relatively flat magazine advertising market + knight-ridder inc. is faced with continued uncertainty over the pending joint operating agreement between its detroit free press and <unk> 's detroit news and has told analysts that earnings were down in the third quarter + however analysts point to positive advertising spending at several of its major daily newspapers such as the miami herald and san jose mercury news + the miami market is coming back strong after a tough couple of years when knight-ridder was starting up a hispanic edition and circulation was falling said bruce <unk> an analyst for <unk> national bank + general motors corp. in a series of moves that angered union officials in the u.s. and canada has signaled that as many as five north american assembly plants may not survive the mid-1990s as the corporation struggles to cut its excess <unk> capacity + in announcements to workers late last week gm effectively signed death <unk> for two <unk> van assembly plants and cast serious doubt on the futures of three u.s. car factories + gm is under intense pressure to close factories that became unprofitable as the giant auto maker 's u.s. market share skidded during the past decade + the company currently using about N N of its north american vehicle capacity has vowed it will run at N N of capacity by N + just a month ago gm announced it would make an aging assembly plant in <unk> ga. the eighth u.s. assembly facility to close since N + now gm appears to be stepping up the pace of its factory consolidation to get in shape for the 1990s + one reason is mounting competition from new japanese car plants in the u.s. that are pouring out more than one million vehicles a year at costs lower than gm can match + another is that united auto workers union officials have signaled they want tighter <unk> provisions in the new big three national contract that will be negotiated next year + gm officials want to get their strategy to reduce capacity and the work force in place before those talks begin + the problem however is that gm 's moves are coming at a time when <unk> leaders are trying to <unk> <unk> who charge the union is too passive in the face of gm layoffs + against that backdrop <unk> vice president stephen p. <unk> who recently became head of the union 's gm department issued a statement friday <unk> gm 's <unk> <unk> toward union members + the auto maker 's decision to let word of the latest <unk> and product <unk> <unk> out in separate <unk> to the affected plants showed disarray and an inability or <unk> to provide consistent information mr. <unk> said + gm officials told workers late last week of the following moves production of <unk> vans will be consolidated into a single plant in <unk> mich + that means two plants one in <unk> ontario and the other in <unk> ohio probably will be shut down after the end of N + the <unk> will idle about N canadian assembly workers and about N workers in ohio + robert white canadian auto workers union president used the impending <unk> shutdown to <unk> the <unk> free trade agreement and its champion prime minister brian <unk> + but canadian auto workers may benefit from a separate gm move that affects three u.s. car plants and one in quebec + workers at plants in van <unk> calif. oklahoma city and <unk> mich. were told their facilities are no longer being considered to build the next generation of the <unk> <unk> and chevrolet <unk> muscle cars + gm is studying whether it can build the new <unk> profitably at a plant in st. <unk> quebec company and union officials said + that announcement left union officials in van <unk> and oklahoma city uncertain about their futures + the van <unk> plant which employs about N workers does n't have a product to build after N + jerry <unk> <unk> local president said the facility was asked to draw up plans to continue working as a <unk> plant which could build several different types of products on short notice to satisfy demand + at the oklahoma city plant which employs about N workers building the <unk> <unk> <unk> cars steve <unk> <unk> local vice president said the plant has no new product lined up and none of us knows when the <unk> cars will die + he said he believes gm has plans to keep building <unk> cars into the mid-1990s + at <unk> however the <unk> decision appears to <unk> <unk> hopes that gm would reopen the <unk> assembly plant that last built the <unk> <unk> <unk> <unk> model + the <unk> plant was viewed as a model of <unk> cooperation at gm before slow sales of the <unk> forced the company to close the factory last year + union officials have taken a beating politically as a result + dissident <unk> members have used the <unk> plant as a symbol of labor-management cooperation 's failure + <unk> merieux s.a. of france said the canadian government raised an obstacle to its proposed acquisition of connaught <unk> inc. for N million canadian dollars us$ N million + merieux said the government 's minister of industry science and technology told it that he was n't convinced that the purchase is likely to be of net benefit to canada + canadian investment rules require that big foreign takeovers meet that standard + the french company said the government gave it N days in which to submit information to further support its takeover plan + both merieux and connaught are biotechnology research and vaccine manufacturing concerns + the government 's action was unusual + alan <unk> executive vice president of investment canada which oversees foreign takeovers said it marked the first time in its four-year history that the agency has made an adverse <unk> decision about the acquisition of a publicly traded company + he said it has reached the same conclusions about some attempts to buy closely held concerns but eventually allowed those acquisitions to proceed + this is n't a change in government policy this provision has been used before said <unk> redmond press secretary for <unk> <unk> canada 's minister of industry science and technology + mr. <unk> issued the ruling based on a recommendation by investment canada + spokesmen for merieux and connaught said they had n't been informed of specific areas of concern by either the government or investment canada but added they hope to have more information early this week + investment canada declined to comment on the reasons for the government decision + <unk> mehta a partner with mehta & <unk> a new york-based pharmaceutical industry research firm said the government 's ruling was n't unexpected + this has become a very <unk> deal concerning canada 's only large <unk> <unk> or pharmaceutical company mr. mehta said + mr. mehta said the move that could allow the transaction to go ahead as planned could be an <unk> settlement of connaught 's dispute with the university of toronto + the university is seeking to block the acquisition of connaught by foreign interests citing concerns about the amount of research that would be done in canada + the university is considering a settlement proposal made by connaught + while neither side will disclose its <unk> mr. mehta expects it to contain more specific guarantees on research and development spending levels in canada than merieux offered to investment canada + some analysts such as murray <unk> of toronto-based <unk> <unk> inc. believe the government ruling leaves the door open for other bidders such as switzerland 's ciba-geigy and chiron corp. of <unk> calif + officials for the two concerns which are bidding c$ N a share for connaught could n't be reached for comment + french state-owned rhone-poulenc s.a. holds N N of merieux + <unk> international inc. said it canceled plans for a <unk> swap but may resume payment of dividends on the stock and added that it expects to publicly offer about N million common shares + the company said it planned to offer an <unk> number of common shares in exchange for the N shares of its preferred stock outstanding + the exchange ratio was never established + <unk> said market conditions led to the cancellation of the planned exchange + the <unk> concern said however that in january N it may resume payments of dividends on the preferred stock + <unk> suspended its <unk> payment in october N and said it has n't any plans to catch up on dividends in <unk> about $ N million but will do so some time in the future + additionally the company said it filed with the securities and exchange commission for the proposed offering of N million shares of common stock expected to be offered in november + the company said salomon brothers inc. and howard weil <unk> <unk> inc. underwriters for the offering were granted an option to buy as much as an additional N million shares to cover <unk> + proceeds will be used to eliminate and restructure bank debt + <unk> currently has approximately N million common shares outstanding + earnings for most of the nation 's major pharmaceutical makers are believed to have moved ahead <unk> in the third quarter as companies with newer <unk> prescription drugs fared especially well + for the third consecutive quarter however most of the companies ' revenues were battered by adverse foreign-currency <unk> as a result of the strong dollar abroad + analysts said that merck & co. eli lilly & co. warner-lambert co. and the squibb corp. unit of bristol-myers squibb co. all benefited from strong sales of relatively new <unk> <unk> that provide wide profit margins + less robust earnings at pfizer inc. and upjohn co. were attributed to those companies ' older products many of which face <unk> competition from generic drugs and other <unk> + joseph <unk> an analyst with bear stearns & co. said that over the past few years most drug makers have shed their <unk> businesses and instituted other cost savings such as consolidating manufacturing plants and administrative staffs + as a result major new products are having significant impact even on a company with very large revenues mr. <unk> said + analysts said profit for the dozen or so big drug makers as a group is estimated to have climbed between N N and N N + while that 's not spectacular neil <unk> an analyst with prudential <unk> said that the rate of growth will look especially good as compared to other companies if the economy turns downward + mr. <unk> estimated that merck 's profit for the quarter rose by about N N propelled by sales of its <unk> of fast-growing prescription drugs including its <unk> drug <unk> a high blood pressure medicine <unk> <unk> an <unk> and <unk> an <unk> medication + profit climbed even though merck 's sales were reduced by one to three percentage points as a result of the strong dollar mr. <unk> said + in the third quarter of N merck earned $ N million or N cents a share + in <unk> n.j. a merck spokesman said the company does n't make earnings projections + mr. <unk> said he estimated that lilly 's earnings for the quarter jumped about N N largely because of the performance of its new <unk> <unk> + the drug introduced last year is expected to generate sales of about $ N million this year + it 's turning out to be a real blockbuster mr. <unk> said + in last year 's third quarter lilly earned $ N million or $ N a share + in indianapolis lilly declined comment + several analysts said they expected warner-lambert 's profit also to increase by more than N N from $ N million or $ N a share it reported in the like period last year + the company is praised by analysts for sharply lowering its costs in recent years and shedding numerous companies with low profit margins + the company 's lean operation analysts said allowed <unk> sales from its cholesterol drug <unk> to power earnings growth + <unk> sales are expected to be about $ N million this year up from $ N million in N + in morris plains n.j. a spokesman for the company said the analysts ' projections are in the <unk> + squibb 's profit estimated by analysts to be about N N above the $ N million or $ N a share it earned in the third quarter of N was the result of especially strong sales of its <unk> drug for treating high blood pressure and other heart disease + the company was officially merged with bristol-myers co. earlier this month + bristol-myers declined to comment + mr. <unk> of bear stearns said that schering-plough corp. 's expected profit rise of about N N to N N and <unk> 's expected profit increase of about N N are largely because those companies are really managed well + <unk> earned $ N million or N cents a share while bristol-myers earned $ N million or N cents a share in the like period a year earlier + in madison n.j. a spokesman for schering-plough said the company has no problems with the average estimate by a analysts that third-quarter earnings per share rose by about N N to $ N + the company expects to achieve the N N increase in full-year earnings per share as it projected in the spring the spokesman said + meanwhile analysts said pfizer 's recent string of lackluster quarterly performances continued as earnings in the quarter were expected to decline by about N N + sales of pfizer 's important drugs <unk> for treating <unk> and <unk> a heart medicine have <unk> because of increased competition + the strong dollar hurt pfizer a lot too mr. <unk> said + in the third quarter last year pfizer earned $ N million or $ N a share + in new york the company declined comment + analysts said they expected upjohn 's profit to be flat or rise by only about N N to N N as compared with $ N million or N cents a share it earned a year ago + upjohn 's <unk> drugs are <unk> a <unk> and <unk> a <unk> + sales of both drugs have been hurt by new state laws restricting the <unk> of certain <unk> <unk> and adverse publicity about the excessive use of the drugs + also the company 's <unk> drug <unk> is selling well at about $ N million for the year but the company 's profit from the drug has been reduced by upjohn 's expensive print and television campaigns for advertising analysts said + in <unk> mich. upjohn declined comment + amid a crowd of <unk> stocks <unk> technology inc. 's stock fell particularly hard friday dropping N N because its problems were compounded by disclosure of an unexpected loss for its fiscal first quarter + the <unk> software company said it expects a $ N million net loss for the fiscal first quarter ended sept. N + it said analysts had been expecting a small profit for the period + revenue is expected to be up modestly from the $ N million reported a year ago + <unk> technology reported net income of $ N million or N cents a share in the year-earlier period + while our international operations showed strong growth our domestic business was substantially below expectations said paul <unk> president and chief executive officer + a spokesman said the company 's first quarter is historically soft and computer companies in general are experiencing slower sales + mr. <unk> said he accepted the resignation of thomas wilson vice president of corporate sales and that his marketing responsibilities have been <unk> + the company said mr. wilson 's resignation was n't related to the sales <unk> + <unk> technology went public in may N at $ N a share + it fell $ N a share friday to $ N a new low in over-the-counter trading + its high for the past year was $ N a share + in the previous quarter the company earned $ N million or N cents a share on sales of $ N million + the bronx has a wonderful <unk> garden a great <unk> its own <unk> little italy on arthur avenue and of course the <unk> + however most people having been <unk> to news <unk> of the <unk> south bronx look at the borough the way tom <unk> 's sherman <unk> did in <unk> of the <unk> as a wrong turn into hell + but <unk> <unk> 's bronx her <unk> bronx of the <unk> is something else altogether + in a lovely <unk> <unk> sleeping arrangements <unk> N pages $ N she <unk> an exotic <unk> <unk> mainly by jewish <unk> and the <unk> catholic real <unk> like her <unk> friend the <unk> <unk> age five + ms. <unk> a novelist and playwright has a vivid and dramatically <unk> sense of recall + she <unk> her bronx of the <unk> a place where the <unk> of <unk> are only relieved by steep <unk> into <unk> into the <unk> bronx a world <unk> with sex and death and <unk> + in the <unk> bronx jewish <unk> people lived in <unk> <unk> buildings <unk> with names like <unk> towers after owners <unk> and morris <unk> whose <unk> and <unk> were <unk> with <unk> of ancient <unk> and <unk> <unk> of <unk> + for ms. <unk> the architectural <unk> matched the <unk> she felt living in the <unk> towers as a little girl <unk> ordinary <unk> <unk> <unk> all <unk> to <unk> <unk> + <unk> and funny but never mean she 's a <unk> a bit like <unk> <unk> if he 'd been jewish and female and less <unk> + little <unk> as ms. <unk> calls herself in the book really was n't ordinary + she was raised for the first eight years by her mother <unk> whom she <unk> as a <unk> <unk> who <unk> history to explain why <unk> 's father did n't live with them + <unk> <unk> this man who may or may not have known about his child as a war hero for <unk> 's benefit + <unk> died young and <unk> has remembered her as a romantic figure who did n't interfere much with her child 's education on the streets + the games bronx children played holding kids down and <unk> them for example seem <unk> by today 's crack standards but ms. <unk> makes it all sound like a great <unk> + without official knowledge of sex or death we <unk> with both she writes + she <unk> families by their sleeping arrangements + her friend susan whose parents kept <unk> her she was unwanted <unk> on a narrow bed <unk> into her parents ' <unk> as though she were a temporary <unk> + her friend <unk> 's father was a professional thief they did n't seem to have any <unk> at all + maybe <unk> became so <unk> with where people <unk> and how because her own arrangements kept shifting + when <unk> died her <unk> moved in and let her make the sleeping and other household arrangements + they painted the apartment orange <unk> and white according to her instructions + with <unk> detail she recalls her uncle <unk> an orthodox <unk> and song <unk> who <unk> river with <unk> in a love song and uncle <unk> a <unk> <unk> investigator who looked like lincoln and carried a change of clothing in a manila <unk> like an <unk> president on a <unk> mission + they came by their <unk> <unk> + <unk> 's <unk> no <unk> baker <unk> the heads of <unk> <unk> from the family <unk> and <unk> around her <unk> <unk> philosophy for women + the book loses some momentum toward the end when <unk> becomes more <unk> with dating boys and less with her <unk> weird family + for the most part though there 's much pleasure in her <unk> <unk> probe into the <unk> of the <unk> bronx + the bronx also figures in bruce jay <unk> 's latest novel which <unk> back to the new york of the <unk> + but both the past and present <unk> of the current climate atlantic monthly press N pages $ N feel <unk> and <unk> + for his sixth novel mr. <unk> tried to <unk> the <unk> of his N work about harry towns + harry is now a <unk> writer whose continuing <unk> with drugs and marginal types in hollywood and new york seems <unk> <unk> + harry <unk> <unk> the old days of the early <unk> when people like his friend <unk> would take a <unk> on a date to analyze what <unk> was doing wrong + an l.a. solution explains mr. <unk> + line by line mr. <unk> 's <unk> <unk> can be amusing especially when he 's <unk> on the hollywood social scheme the way people size each other up immediately <unk> the desperate ones who merely almost made it + harry has avoided all that by living in a long island suburb with his wife who 's so <unk> to soap <unk> and mystery novels she barely seems to notice when her husband disappears for <unk> <unk> into manhattan + but it does n't take too many lines to figure harry out + he 's a <unk> + gulf resources & chemical corp. said it agreed to pay $ N million as part of an accord with the environmental protection agency regarding an environmental cleanup of a <unk> <unk> the company formerly operated in idaho + in N the epa notified gulf resources which was a <unk> of the <unk> that it was potentially liable for sharing cleanup costs at the site under the federal superfund program + the <unk> area is <unk> with lead <unk> and other metals + gulf resources earlier this year proposed a reorganization plan that would make it a unit of a <unk> concern potentially <unk> it from liability for the <unk> 's cleanup costs + the company said that as part of its agreement with the epa it made certain voluntary <unk> with respect to <unk> transactions entered into after the reorganization + the company which issued a statement on the agreement late friday said that $ N million of the payment was previously provided for in its financial statements and that $ N will be recognized in its N third-quarter statement + the agreement and consent <unk> are subject to court approval the company said + gulf resources added that it will seek to recover equitable contribution from others for both the amount of the settlement and any other liabilities it may incur under the superfund law + under the agreement gulf must give the u.s. government N days ' advance written notice before issuing any dividends on common stock + the company 's net worth can not fall below $ N million after the dividends are issued + the terms of that agreement only become effective the date of gulf 's reorganization which we anticipate will occur sometime in early N said lawrence r. mehl gulf 's general counsel + in addition gulf must give the government N days ' advance written notice of any loans exceeding $ N million that are made to the <unk> holding company + gulf 's net worth after those transaction must be at least $ N million + separately the company said it expects to hold a special meeting for shareholders in early N to vote on its proposed reorganization + many of the nation 's <unk> executives <unk> friday 's market plunge as an overdue <unk> for speculators and takeover players + assuming that the market does n't head into a <unk> free fall some executives think friday 's action could prove a <unk> of good news as a sign that the leveraged buy-out and takeover frenzy of recent years may be <unk> + this is a reaction to <unk> lbo <unk> rather than to any fundamentals said john young chairman of hewlett-packard co. whose shares dropped $ N to $ N + if we get rid of a lot of that nonsense it will be a big plus + a few of the executives here for the fall meeting of the business council a group that meets to discuss national issues were only too happy to <unk> their criticism + people wish the government would do something about leveraged buy-outs do something about takeovers do something about donald trump said rand <unk> chairman of itt corp. whose stock dropped $ N + where 's the leadership + where 's the guy who can say enough is enough + the executives were <unk> <unk> by the plunge even though it <unk> billions of dollars off the value of their companies and millions off their personal fortunes + i 'm not going to worry about one day 's decline said kenneth <unk> digital equipment corp. president who was <unk> <unk> through the bright orange and yellow leaves of the <unk> here after his company 's shares plunged $ N to close at $ N + i did n't bother calling anybody i did n't even turn on tv + there has n't been any fundamental change in the economy added john <unk> whose procter & gamble co. took an $ N slide to close at $ N + the fact that this happened two years ago and there was a recovery gives people some comfort that this wo n't be a problem + of course established corporate <unk> often tend to <unk> the setbacks of stock speculators and takeover artists + indeed one chief executive who was downright <unk> by friday 's events was robert crandall chairman of amr corp. the parent of american airlines and the target of a takeover offer by mr. trump + asked whether friday 's action could help him avoid being <unk> by the new york real estate <unk> mr. crandall <unk> broadly and said no comment + on friday morning before the market 's sell-off the business leaders issued a report predicting the economy would grow at roughly an inflation-adjusted N N annual rate through next year then accelerate <unk> in N + of the N economists who worked on the business council forecast only two projected periods of decline in the nation 's output over the next two years and in both <unk> the declines are too modest to warrant the phrase recession said lewis <unk> chairman of j.p. morgan & co. and vice chairman of the business council + the real estate slump that 's pushing down the price of new york office space and housing is also affecting the city 's retail real estate market + in manhattan <unk> store sites sit vacant and newly constructed space has been slow to fill + retail real estate brokers say tenants are reluctant to sign leases because of uncertainty about the local economy turmoil in their own industries and a belief that <unk> have not yet hit bottom + there is an <unk> amount of space available says faith <unk> senior vice president at <unk> associates store leasing inc + there are about N stores for rent up from a more typical range of N to N + this further <unk> retailers she says + they wonder should they sign a lease if prices are still coming down + is this the wrong time to open a store + who is going to be in the space next door + in addition ms. <unk> says tenants usually can negotiate to pay <unk> that are about <unk> lower than <unk> ' initial asking price + a handful of hot retail locations such as the <unk> street and madison and fifth avenue areas have been able to sustain what many see as <unk> <unk> + and in some neighborhoods <unk> have merely hit a <unk> + but on average manhattan retail <unk> have dropped N N to N N in the past six months alone experts say + that follows a more <unk> decline in the prior six months after manhattan <unk> had run up rapidly since N + the same factors limiting demand for office space have affected retailing + as businesses contract or <unk> the number of employees who might use retail services <unk> says edward a. <unk> senior vice president of helmsley <unk> inc + he says financial problems <unk> electronics fur and furniture companies key categories in the local retail economy have further <unk> the market + hardest hit are what he calls secondary sites that primarily serve neighborhood residents + in these locations mr. <unk> says retailers are increasingly cautious about expanding and <unk> have remained steady or in some cases have declined + weakness in the restaurant industry which is leaving retail space vacant <unk> the problem for <unk> + it is also no comfort to <unk> and small new york retailers when the future of larger department stores which <unk> retail neighborhoods are in doubt + hooker corp. parent of <unk> teller and b. altman 's is mired in bankruptcy proceedings and bloomingdale 's is for sale by its owner campeau corp + the trend toward lower <unk> may seem surprising given that some communities in new york are <unk> the loss of favorite local businesses to high <unk> + but despite the recent softening for many of these retailers there 's still been too big a jump from the rental rates of the late 1970s when their leases were signed + certainly the recent drop in prices does n't mean manhattan comes cheap + new york retail <unk> still run well above the going rate in other u.s. cities + madison and fifth <unk> and east <unk> street can command <unk> of up to $ N a square foot and $ N is not uncommon + the thriving <unk> street area offers <unk> of about $ N a square foot as do <unk> locations along lower fifth avenue + by contrast <unk> in the best retail locations in boston san francisco and chicago rarely top $ N a square foot + and <unk> on beverly hills ' <unk> drive generally do n't exceed about $ N a square foot + the new york stock exchange said two securities will begin trading this week + precision <unk> corp. <unk> ore. will begin trading with the symbol <unk> + it makes investment <unk> and has traded over-the-counter + royal bank of scotland group plc an <unk> scotland financial services company will list american depositary shares representing preferred shares with the symbol <unk> + it will continue to trade on the international stock exchange london + the american stock exchange listed shares of two companies + aim telephones inc. a <unk> n.j. telecommunications equipment supply company started trading with the symbol aim + it had traded over-the-counter + columbia laboratories inc. miami began trading with the symbol <unk> + the pharmaceuticals maker had traded over-the-counter + the national market system of the nasdaq over-the-counter market listed shares of one company + employee benefit plans inc. a minneapolis health-care services company was listed with the symbol <unk> + when justice william <unk> marks the start of his <unk> year on the supreme court today the occasion will differ sharply from previous <unk> of his tenure + for the first time the <unk> justice finds his influence almost exclusively in dissent rather than as a force in the high court 's majority + this role reversal holds true as well for his three liberal and moderate allies justices <unk> marshall harry <unk> and john stevens + but are these four players three of them in their <unk> ready to assume a different role after N years <unk> of service on the high court + every indication is that the four are prepared to accept this new role and the <unk> that go with it but in different ways + justices <unk> and stevens appear <unk> about it justices marshall and <unk> appear fighting mad + the four justices are no newcomers to dissent often joining forces in the past decade to <unk> the court 's conservative <unk> + but always in years past they have <unk> the trend and have been able to pick up a fifth vote to <unk> out a number of major victories in civil rights and <unk> cases + now however as the court 's new <unk> conservative majority continues to <unk> victories for the liberals are rare + the change is most dramatic for justice <unk> the last <unk> of the <unk> liberal majority under chief justice <unk> warren + in the seven supreme court terms from the fall of N through the spring of N the <unk> of the warren court 's power justice <unk> cast only N <unk> votes in N cases decided by the court + last term alone he cast N <unk> votes in N decisions with the contentious <unk> ruling as his only big victory + but justice <unk> <unk> his new role strongly defending the importance of <unk> in a N speech + each time the court <unk> an issue the justices will be forced by a dissent to reconsider the fundamental questions and to <unk> the result he said + moreover in recent months he has said that when he was on the winning side in the 1960s he knew that the tables might turn in the future + he has said that he now knows how justice john <unk> felt a reference to the late conservative justice who was the most frequent <unk> from the warren court 's opinions + associates of <unk> justice marshall say he was depressed about the court 's direction last spring but is <unk> about his role and determined to speak out against the court 's cutbacks in civil rights + we could sweep it under the <unk> and hide it but i 'm not going to do it he said in a speech last month + he like justice <unk> considers <unk> highly important for the future a point that has n't escaped legal scholars + harvard law school professor laurence tribe says there is a <unk> flavor to current <unk> + the <unk> in the warren court he says appeared to be writing for the short-term suggesting that the court 's direction might change soon + <unk> and marshall are speaking in their <unk> to a more distant future he says + justice <unk> who will turn N next month also seems <unk> about his new role + associates say he takes some <unk> more personally than his colleagues especially attempts to curtail the right to abortion first recognized in his N opinion roe vs. wade + friends and associates who saw justice <unk> during the summer said he was no more discouraged about the court than in recent years + and his outlook improved after successful <unk> surgery in august + but his level of frustration showed in a recent <unk> speech to a group of hundreds of lawyers in chicago + he concluded his remarks by <unk> <unk> and at some length according to those present the late martin <unk> king 's famous i have a dream speech from the N march on washington + justice stevens N is probably the most <unk> of the <unk> about his role in part because he may be the least liberal of the four but also because he enjoys the intellectual challenge of arguing with the majority more than the others + if the role these four <unk> are assuming is a familiar one in modern supreme court history it also <unk> in an important way from recent history court watchers say + the <unk> of the warren court were often defending a legal <unk> that they inherited says prof. <unk> dick howard of the university of virginia law school but the <unk> today are defending a <unk> that they created + the government sold the deposits of four savings-and-loan institutions in its first wave of sales of big sick thrifts but low bids prevented the sale of a fifth + the four s&ls were sold to large banks as was the case with most of the N previous transactions initiated by the resolution trust corp. since it was created in the s&l bailout legislation two months ago + two of the four big thrifts were sold to ncnb corp. charlotte n.c. which has aggressively expanded its markets particularly in texas and florida + a canadian bank bought another thrift in the first rtc transaction with a foreign bank + under these deals the rtc sells just the deposits and the healthy assets + these <unk> transactions leave the bulk of bad assets mostly real estate with the government to be sold later + in these four for instance the rtc is stuck with $ N billion in bad assets + <unk> paid premiums ranging from N N to N N for the deposits and branch systems roughly in line with what analysts were expecting + the buyers will also be locked into deposit rates for just two weeks as has been the case with previous deals + after that the buyers may <unk> the rates paid by the former thrifts + but it 's uncertain whether these institutions will take those steps + ncnb for example has been one of the highest rate <unk> in the texas market and in florida rates are especially sensitive in retirement communities + the rtc had previously targeted five thrifts for quick sales in order to spend cash by certain budgetary deadlines but the delays illustrate the tough <unk> facing the agency + these thrifts are <unk> <unk> said <unk> <unk> an industry consultant based in <unk> va + for example the delay in selling people 's heritage savings <unk> kan. with $ N billion in assets has forced the rtc to consider selling off the thrift <unk> instead of as a whole institution + ncnb continued its <unk> into the florida and texas markets + ncnb will acquire university federal savings association houston which had assets of $ N billion + ncnb texas national bank will pay the rtc a premium of $ N million for $ N billion in deposits + as a measure of the <unk> to which the texas real estate market has <unk> the rtc will pay $ N billion to ncnb to take $ N million of bad assets + ncnb also acquired freedom savings & loan association tampa fla. which had total assets of $ N million + ncnb will pay the rtc a premium of $ N million for $ N billion in deposits + ncnb will also acquire $ N million of freedom 's assets from the rtc which will require $ N million in assistance + meridian bancorp inc. reading pa. will acquire hill financial savings association red hill pa. which had $ N billion in assets + meridian will pay a premium of $ N million to assume $ N billion in deposits + it will also purchase $ N million of the thrift 's assets with $ N billion in rtc assistance + in the first rtc transaction with a foreign buyer royal <unk> ltd. toronto will acquire pacific savings bank costa mesa calif. which had $ N million in assets + royal <unk> will pay the rtc $ N million to assume $ N million in deposits + it will also purchase $ N million in assets and receive $ N million in assistance from the rtc + the following issues were recently filed with the securities and exchange commission + american <unk> co. offering of N common shares via merrill lynch capital markets + limited inc. offering of up to $ N million of debt securities and warrants + <unk> california performance plus municipal fund inc. initial offering of five million common shares via alex brown & sons inc. john <unk> & co. prudential-bache capital funding and <unk> <unk> hill <unk> + <unk> health systems inc. proposed offering of N million common shares of which N shares will be offered by <unk> and N shares by <unk> america inc <unk> 's N N via dillon read & co. inc. goldman sachs & co. and dean witter reynolds inc + <unk> inc. offering of one million new shares of common stock and N shares by holders via drexel burnham lambert inc. and j.c. bradford & co + trans world airlines inc. offering of $ N million senior notes via drexel burnham + time magazine in a move to reduce the costs of wooing new subscribers is lowering its circulation guarantee to advertisers for the second consecutive year increasing its subscription rates and cutting back on merchandise <unk> + in an announcement to its staff last week executives at time warner inc. 's weekly magazine said time will dramatically <unk> its use of electronic <unk> such as telephones in television subscription drives cut the circulation it guarantees advertisers by N to four million and increase the cost of its annual subscription rate by about $ N to $ N + in a related development the <unk> for the fourth year in a row said it wo n't increase its advertising rates in N a full <unk> page in the magazine costs about $ N + however because the guaranteed circulation base is being lowered ad rates will be effectively N N higher per subscriber according to richard <unk> time associate publisher + time is following the course of some other <unk> magazines that in recent years have challenged the publishing <unk> that maintaining artificially high and expensive <unk> is the way to draw advertisers + in recent years reader 's digest new york times co. 's mccall 's and most recently news corp. 's tv guide have cut their massive circulation rate bases to eliminate marginal circulation and hold down rates for advertisers + deep discounts in <unk> and offers of free <unk> <unk> and watches have become accepted forms of attracting new subscribers in the <unk> world of magazine <unk> + but time as part of the more <unk> time warner wants to <unk> itself away from expensive <unk> + besides time executives think selling a news magazine with a <unk> radio is <unk> + <unk> just give people the wrong image said mr. <unk> + that perception takes the focus off the magazine + time magazine executives predictably <unk> the circulation cut as a show of strength and actually a benefit to advertisers + what we are doing is <unk> out the readers who are only <unk> related to the magazine and do n't really read it said mr. <unk> + we are trying to create quality and involvement + however time executives used the same explanation when in october N the magazine cut its guaranteed circulation from N million to N million + and time 's paid circulation according to audit bureau of <unk> dropped N N to N in the six months ended june N N + still time 's move is being received well once again + it 's <unk> for advertisers to know the reader will be paying more said michael <unk> national media director at bozell inc. ad agency + a few drops in circulation are of no consequence + it 's not a show of weakness they are improving the quality of circulation while <unk> their profits + mr. <unk> said the changes represent a new focus in the magazine industry a magazine 's net revenue per subscriber or the actual revenue from subscribers after discounts and the cost of premiums have been stripped away + the question is how much are we getting from each reader said mr. <unk> + time 's rivals <unk> washington post co. 's newsweek and u.s. news & world report are less <unk> on electronic <unk> and in recent years both have been increasing their circulation rate bases + both magazines are expected to announce their ad rates and circulation levels for N within a month + when the news broke of an attempted coup in panama two weeks ago sen. christopher dodd called the state department for a briefing + they said follow <unk> he told reporters + that shows how far ted turner 's cable news network has come since its birth nine years ago when it was considered the <unk> of television news + it is bigger faster and more profitable than the news divisions of any of the three major broadcast networks + its niche as the network of record during major crises draws elite audiences around the world + but for all its success <unk> has hit a <unk> + although <unk> <unk> when big news breaks it <unk> during periods of calm + <unk> executives worry that the network 's <unk> but <unk> news format may be getting <unk> and wo n't keep viewers coming back as the alternatives <unk> for news and information on cable-tv + just the fact we 're on N hours is no longer <unk> says ed turner <unk> 's executive vice president news gathering and no <unk> to ted turner + you ca n't live on that + so <unk> a unit of atlanta-based turner broadcasting system inc. is trying to <unk> itself as a primary channel or what people in the television industry call a top of mind network + tonight to kick off the effort <unk> will premiere its first prime-time <unk> in years an <unk> show at N p.m eastern time to air <unk> against the network <unk> + the show will be <unk> by bernard shaw and <unk> <unk> a <unk> former texas judge and campus beauty queen who has never held a job in television or journalism + the new show is perhaps the <unk> in a number of steps the network is taking to build audience loyalty by shifting away from its current format toward more <unk> signature programming with <unk> stars + to <unk> itself <unk> is also expanding international coverage and adding a second <unk> program + it is paying higher salaries after years of <unk> to lure and keep experienced staffers + and it is <unk> on an expensive gamble to break major stories with a large <unk> team + the next stage is to get beyond the opinion leaders who use us as a point of reference to become a point of reference at ordinary dinner tables says jon <unk> executive vice president of headline news <unk> 's sister network + but that wo n't be easy + networks like other consumer products develop images in peoples ' minds that are n't easy to change + it also takes money that <unk> has been reluctant to spend to make programs and hire talent that viewers will tune in specially to see + and the cable-tv operators <unk> 's distributors and part owners like things just the way they are + the <unk> bid is aimed at <unk> 's <unk> <unk> and what may happen to it as the cable-tv news market grows more competitive + already <unk> is facing stronger competition from financial news network inc. and general electric co. 's consumer news and business channel both of which are likely to pursue more general news in the future + in addition many cable-tv systems themselves are airing more local and regional news programs produced by local broadcast stations + <unk> wants to change its viewers ' habits + its watchers are on the whole a <unk> group of <unk> <unk> and news <unk> who spend an average of just N minutes a day watching <unk> according to audience research + that 's less than one-third the time that viewers watch the major broadcast networks + the brief attention viewers give <unk> could put it at a disadvantage as ratings data and advertising become more important to cable-tv channels + <unk> 's <unk> habits have been <unk> by its format + its strategy in the past has been to serve as a tv wire service + it focused on building up its news bureaus around the world so as events took place it could go live <unk> and longer than other networks + it filled its daily schedule with <unk> called <unk> <unk> <unk> and <unk> but the shows <unk> little in content <unk> or look + now the push is on for <unk> shows + our goal is to create more programs with an individual identity says paul <unk> <unk> executive vice president for programming + <unk> <unk> is adding a <unk> show in the morning because surveys show its <unk> hour in the afternoon is among its most <unk> programs in viewers ' minds says mr. <unk> + and it is exploring other original programs similar to its larry king live and <unk> talk shows which executives hope will keep people <unk> in + then there 's the world today the prime-time <unk> featuring mr. shaw and ms. <unk> + until now <unk> has featured its hollywood <unk> show during the key evening period + but N N of the <unk> households that watch news do so between N p.m. and N p.m. the network discovered so <unk> wants in + mr. <unk> says the <unk> team will probably do two live interviews a day with most of the program at least for now appearing similar to <unk> 's other <unk> + some in the industry are skeptical + i find it hard to <unk> of people switching over to <unk> for what at least in the public 's mind is the same news says <unk> frank the former <unk> president of nbc news and <unk> of the <unk> report + the evening news is also slated as <unk> 's stage for its big push into <unk> journalism + in august the network hired <unk> producer <unk> hill the former head of news <unk> at abc + she 's <unk> a staff of about N <unk> reporters who will produce weekly <unk> segments with an eye toward breaking big stories + <unk> executives hope the <unk> created by such <unk> will generate excitement for its <unk> programs in the way N minutes did so well for cbs + that 's such a departure from the past that many in the industry are skeptical <unk> will follow through with its <unk> commitment especially after it sees the cost of producing <unk> pieces + they 've never shown any <unk> to spend money on production says michael <unk> a senior producer with <unk> <unk> who notes that <unk> is <unk> to his job + the network 's salaries have always ranged far below industry standards resulting in a <unk> work force + <unk> recently gave most employees raises of as much as N N but they 're still drastically <unk> compared with the networks + says mr. <unk> <unk> is my wire service they 're on top of everything + but to improve they 've really got to make the investment in people + in any case <unk> operators have reason to fear any <unk> with <unk> 's format + they market cable-tv on the very <unk> opportunities <unk> seeks to discourage + we would obviously be upset if those kinds of services <unk> into more <unk> <unk> programming says robert <unk> senior vice president programming of continental <unk> inc. which holds a N N stake in turner broadcasting + the second u.s. circuit court of appeals opinion in the <unk> <unk> case did not <unk> the position pennzoil co. took in its dispute with texaco contrary to your sept. N article court backs texaco 's view in pennzoil case too late + the fundamental rule of contract law applied to both cases was that courts will not enforce agreements to which the parties did not intend to be bound + in the <unk> litigation the courts found pennzoil and <unk> oil intended to be bound in <unk> <unk> they found there was no intention to be bound + <unk> the principle in the cases is the same + but the outcome of a legal dispute almost always turns on the facts + and the facts as found by the various courts in these two lawsuits were different + when you suggest otherwise you leave the <unk> of reporting and enter the <unk> of speculation + charles f. <unk> + valley federal savings & loan association said imperial corp. of america withdrew from regulators its application to buy five valley federal branches leaving the transaction in limbo + the broken purchase appears as additional evidence of trouble at imperial corp. whose spokesman said the company withdrew its application from the federal office of thrift supervision because of an informal notice that imperial 's thrift unit failed to meet community reinvestment act requirements + the community reinvestment act requires savings and loan associations to lend money in amounts related to areas where deposits are received + the transaction announced in august included about $ N million in deposits at the five outlets in california 's san <unk> valley + terms were n't disclosed but valley federal had said it expected to post a modest pretax gain and to save about $ N million in operating costs annually + valley federal said friday that it is considering whether to seek another buyer for the branches or to pursue the transaction with imperial corp. which said it is attempting to meet community reinvestment act requirements + valley federal with assets of $ N billion is based in van <unk> + imperial corp. based in san diego is the parent of imperial savings & loan + in the first six months of the year it posted a net loss of $ N million + call it the we 're too broke to fight defense + lawyers for dozens of insolvent savings and loan associations are trying a new <unk> in their efforts to <unk> suits filed by borrowers developers and creditors + the thrifts ' lawyers claim that the suits <unk> N to N in texas alone should be dismissed as <unk> because neither the s&ls nor the <unk> federal savings and loan insurance corp. has the money to pay judgments + though the argument may have a <unk> ring to it even the s&l lawyers concede there 's little precedent to back their position + still one federal appeals court has signaled it 's willing to <unk> the notion and the lawyers have renewed their arguments in texas and eight other states where the defense is permitted under state law + the dismissal of the pending suits could go a long way toward clearing court <unk> in texas and reducing the <unk> 's massive legal bills which topped $ N million last year + the s&l lawyers were encouraged last month by an <unk> ruling in two cases brought against <unk> <unk> savings & loan association of dallas by the developers of the valley ranch best known as the training center for the dallas cowboys football team + <unk> foreclosed on the ranch + <unk> and the <unk> argued to the fifth u.s. circuit court of appeals that there will never be any assets with which to satisfy a judgment against <unk> savings nor any means to collect from any other party including <unk> + if true the court wrote this <unk> would justify dismissal of these actions on prudential grounds + but the court said it lacked enough financial information about <unk> and the <unk> and sent the cases back to federal district court in dallas + charles <unk> a lawyer for <unk> says he plans to file a brief this week urging the district judge to dismiss the suits because <unk> 's liabilities exceeded its assets by about $ N billion when federal regulators closed it in august N + this institution is just brain dead says mr. <unk> a partner in the dallas office of <unk> & <unk> a houston law firm + but a lawyer for <unk> investment group the developer of valley ranch <unk> such arguments as a defense du <unk> + attorney richard jackson of dallas says a judgment for <unk> could be satisfied in ways other than a monetary award including the reversal of <unk> 's <unk> on valley ranch + we 're asking the court for a number of things he can grant in addition to the <unk> of victory he says + we 'd take the valley ranch free and clear as a <unk> prize + kenneth j. <unk> who was named president of this thrift holding company in august resigned citing personal reasons + mr. <unk> said he had planned to travel between the job in denver and his san diego home but has found the commute too difficult to continue + a new president was n't named + south africa freed the anc 's sisulu and seven other political <unk> + thousands of supporters many <unk> flags of the outlawed african national congress gave the <unk> activists a tumultuous reception upon their return to black <unk> across the country + most of those freed had spent at least N years in prison + the <unk> sisulu sentenced to life in N along with black <unk> nelson <unk> for <unk> to <unk> the government said <unk> for blacks in south africa was in reach + the releases announced last week by president de <unk> were viewed as pretoria 's <unk> <unk> of the anc + <unk> considered the most prominent leader of the anc remains in prison + but his release within the next few months is widely expected + the soviet union reported that thousands of tons of goods needed to ease widespread shortages across the nation were <unk> up at ports and rail <unk> and food shipments were <unk> because of a lack of people and equipment to move the cargo + strikes and <unk> were cited and premier <unk> warned of tough measures + bush indicated there might be room for flexibility in a bill to allow federal funding of abortions for poor women who are <unk> of rape and incest + he reiterated his opposition to such funding but expressed hope of a compromise + the president at a news conference friday also renewed a call for the <unk> of panama 's noriega + the white house said <unk> have n't any right to abortion without the consent of their parents + the administration 's policy was stated in a <unk> brief urging the supreme court to give states more <unk> to restrict abortions + ten of the nation 's governors meanwhile called on the justices to reject efforts to limit abortions + the justice department announced that the fbi has been given the authority to seize u.s. <unk> overseas without the permission of foreign governments + secretary of state baker emphasized friday that the new policy would n't be <unk> by the bush administration without full consideration of <unk> implications + nasa <unk> the space shuttle atlantis ready for launch tomorrow following a <unk> <unk> of the flight because of a <unk> engine computer + the device was replaced + the spacecraft 's five <unk> are to <unk> the galileo space probe on an exploration mission to jupiter + south korea 's president roh traveled to the u.s. for a <unk> visit that is expected to focus on ties between washington and seoul + roh who is facing calls for the reduction of u.s. military forces in south korea is to meet with bush tomorrow and is to address a joint session of congress on wednesday + china 's communist leadership voted to <unk> the party of hostile and <unk> elements and wealthy private businessmen whom they called <unk> + the decision reported by the official <unk> news agency indicated that the crackdown prompted by <unk> pro-democracy protests in june is <unk> + hundreds of east germans <unk> to bonn 's embassy in warsaw bringing to more than N the number of <unk> expected to <unk> to the west beginning today + more than N others escaped to west germany through hungary over the weekend + in leipzig activists vowed to continue street protests to demand internal change + <unk> 's president <unk> met in southern france with <unk> rebel leader <unk> and a senior u.s. <unk> in a bid to revive an accord to end <unk> 's civil war + details of the talks described by a <unk> official as very delicate were n't disclosed + plo leader arafat insisted on guarantees that any elections in the <unk> <unk> would be <unk> + he made his remarks to a plo gathering in <unk> + in the occupied <unk> underground leaders of the arab <unk> rejected a u.s. plan to arrange <unk> talks as shamir opposed holding such discussions in cairo + <unk> christian lawmakers presented to arab <unk> at talks in saudi arabia proposals for a new timetable for the withdrawal of <unk> 's forces from lebanon + a plan currently under study gives <unk> two years to pull back to eastern lebanon starting from the time <unk> 's legislature increases political power for <unk> + hurricane jerry threatened to combine with the highest <unk> of the year to <unk> the <unk> coast + thousands of residents of <unk> areas were ordered to <unk> as the storm headed north in the gulf of mexico with N mph <unk> + a group of arby 's franchisees said they formed an association to oppose miami beach financier victor posner 's control of the restaurant chain + the decision is the latest move in an <unk> battle between the franchisees and mr. posner that began in august + at the time a group called <unk> partners ltd. consisting of eight of arby 's largest franchisees offered more than $ N million to buy arby 's inc. which is part of <unk> corp + <unk> is a holding company controlled by mr. posner + one week later leonard h. roberts president and chief executive officer of arby 's was fired in a dispute with mr. posner + friday N franchisees announced the formation of an association called a.p. association inc. to preserve the integrity of the arby 's system + the franchisees owners or operators of N of the N <unk> arby 's in the u.s. said we have concluded that continued control of arby 's by victor posner is totally <unk> to us because it is extremely likely to cause <unk> damage to the arby 's system + we support all efforts to remove victor posner from control of arby 's inc. and the arby 's system + the group said it would consider among other things <unk> royalty payments and <unk> a class-action lawsuit seeking court approval for the <unk> + in florida <unk> <unk> a senior vice president at <unk> responded we do n't think any individual or group should disrupt a winning system or illegally interfere with existing <unk> relationships for their own <unk> <unk> + september 's steep rise in producer prices shows that inflation still <unk> and the <unk> over interest rates caused by the new price data contributed to the stock market 's plunge friday + after falling for three consecutive months the producer price index for finished goods shot up N N last month the labor department reported friday as energy prices jumped after tumbling through the summer + although the report which was released before the stock market opened did n't trigger the 190.58-point drop in the dow jones industrial average analysts said it did play a role in the market 's decline + analysts immediately viewed the price data the <unk> inflation news in months as evidence that the federal reserve was unlikely to allow interest rates to fall as many investors had hoped + further fueling the belief that pressures in the economy were sufficient to keep the fed from easing credit the commerce department reported friday that retail sales grew N N in september to $ N billion + that rise came on top of a N N gain in august and suggested there is still healthy consumer demand in the economy + i think the friday report combined with the actions of the fed weakened the belief that there was going to be an imminent easing of monetary policy said robert <unk> chief economist at northern trust co. in chicago + but economists were divided over the extent of the inflation threat signaled by the new numbers + the overall N N increase is serious in itself but what is even worse is that excluding food and energy the producer price index still increased by N N said gordon <unk> an economist at the national association of manufacturers + but sung won <unk> chief economist at <unk> corp. in minneapolis blamed rising energy prices and the annual autumn increase in car prices for most of the september jump + i would say this is not bad news this is a <unk> he said + the core rate is not really out of line + all year energy prices have <unk> the producer price index which measures changes in the prices producers receive for goods + inflation <unk> has fallen back from its <unk> pace last winter when a steep <unk> in world oil prices sent the index surging at double-digit annual rates + energy prices then plummeted through the summer causing the index to decline for three consecutive months + overall the index has climbed at a N N compound annual rate since the start of the year the labor department said + while far more <unk> than the pace at the beginning of the year that is still a <unk> rise than the N N increase for all of N + moreover this year 's good inflation news may have ended last month when energy prices <unk> up N N after plunging N N in august + some analysts expect oil prices to remain relatively stable in the months ahead leaving the future pace of inflation uncertain + analysts had expected that the climb in oil prices last month would lead to a substantial rise in the producer price index but the N N climb was higher than most anticipated + i think the <unk> in inflation is going to continue for a few months said john <unk> chief economist at bell <unk> <unk> a washington economic forecasting firm + he predicted that inflation will moderate next year saying that credit conditions are fairly tight world-wide + but <unk> van <unk> president of the national association of <unk> said that last month 's rise is n't as bad an <unk> as the N N figure suggests + if you examine the data carefully the increase is concentrated in energy and motor vehicle prices rather than being a broad-based advance in the prices of consumer and industrial goods he explained + passenger car prices jumped N N in september after climbing N N in august and declining in the late spring and summer + many analysts said the september increase was a one-time event coming as dealers introduced their N models + although all the price data were adjusted for normal seasonal fluctuations car prices rose beyond the <unk> autumn increase + prices for capital equipment rose a hefty N N in september while prices for home electronic equipment fell N N + food prices declined N N after climbing N N in august + meanwhile the retail sales report showed that car sales rose N N in september to $ N billion + but at least part of the increase could have come from higher prices analysts said + sales at general merchandise stores rose N N after declining N N in august while sales of building materials fell N N after rising N N + producer prices for intermediate goods grew N N in september after dropping for three consecutive months + prices for crude goods an array of raw materials jumped N N after declining N N in august and <unk> up N N in july + here are the labor department 's producer price indexes N <unk> N for september before seasonal adjustment and the percentage changes from september N + <unk> financial corp. said it expects to report a loss of at least $ N million to $ N million for the third quarter + in the year-earlier period <unk> had net income of $ N but no per-share earnings + <unk> 's president and chief executive officer john <unk> said the loss stems from several factors + he said nonperforming assets rose to slightly more than $ N million from $ N million between june and september + approximately N N of the total <unk> of nonperforming commercial real estate assets + <unk> <unk> estimated that it will provide between $ N million and $ N million for credit losses in the third quarter + <unk> added that significant additional loan-loss provisions may be required by federal regulators as part of the current annual examination of city federal savings bank <unk> 's primary subsidiary based in <unk> n.j + city federal operates N banking offices in new jersey and florida + mr. <unk> said <unk> will also mark its portfolio of high-yield corporate bonds to market as a result of federal legislation requiring that savings institutions <unk> themselves of such bonds + that action <unk> said will result in a charge against third-quarter results of approximately $ N million + <unk> also said it expects to shed its remaining mortgage loan <unk> operations outside its principal markets in new jersey and florida and as a result is taking a charge for discontinued operations + all these actions mr. <unk> said will result in a loss of $ N million to $ N million for the third quarter + he added however depending on the resolution of certain accounting issues relating to mortgages <unk> and the outcome of the annual examination of city federal currently in progress with respect to the appropriate level of loan loss reserves the total loss for the quarter could significantly exceed this range + centrust savings bank said federal thrift regulators ordered it to suspend dividend payments on its two classes of preferred stock indicating that regulators ' concerns about the troubled institution have heightened + in a statement miami-based centrust said the regulators cited the thrift 's operating losses and apparent losses in its junk-bond portfolio in ordering the suspension of the dividends + regulators also ordered centrust to stop buying back the preferred stock + david l. paul chairman and chief executive officer criticized the federal office of thrift supervision which issued the <unk> saying it was inappropriate and based on insufficient reasons + he said the thrift will try to get regulators to reverse the decision + the suspension of a preferred stock dividend is a serious step that signals that regulators have deep concerns about an institution 's health + in march regulators labeled centrust a troubled institution largely because of its big junk-bond holdings and its operating losses + in the same month the office of thrift supervision ordered the institution to stop paying common stock dividends until its operations were on track + for the nine months ended june N centrust had a net loss of $ N million compared with year-earlier net income of $ N million + centrust which is florida 's largest thrift holds one of the largest junk-bond portfolios of any thrift in the nation + since april it has <unk> its high-yield bond holdings to about $ N million from $ N billion + mr. paul said only about $ N million of the current holdings are <unk> securities registered with the securities and exchange commission + the remainder he said are commercial loan <unk> or private <unk> that are n't filed with the sec and do n't have a ready market + centrust and regulators have been in a dispute over market <unk> for the junk bonds + the office of thrift supervision has been <unk> centrust to provide current market values for its holdings but centrust has said it ca n't easily obtain such values because of the relative <unk> of the bonds and lack of a ready market + regulators have become increasingly <unk> about centrust 's and other thrifts ' junk-bond holdings in light of the recent federal thrift bailout legislation and the recent deep decline in the junk-bond market + the legislation requires thrifts to <unk> themselves of junk bonds in the new <unk> regulatory climate + in american stock exchange composite trading friday centrust common shares closed at $ N down N cents + in a statement friday mr. paul challenged the regulators ' decision saying the thrift 's operating losses and apparent junk-bond losses have been substantially offset by gains in other activities of the bank + he also said substantial reserves have been set aside for possible losses from the junk bonds + in the third quarter for instance centrust added $ N million to its general reserves + mr. paul said the regulators should instead move ahead with <unk> centrust 's request to sell N of its N branches to great western bank a unit of great western financial corp. based in beverly hills calif + the branch sale is the centerpiece of centrust 's strategy to transform itself into a traditional s&l from a <unk> institution that relied heavily on securities trading for profits according to mr. paul + most analysts and thrift executives had expected a decision on the proposed transaction which was announced in july long before now + many interpret the delay as an indication that regulators are skeptical about the proposal + branches and deposits can be sold at a premium in the event federal regulators take over an institution + centrust however <unk> the branch sale saying it would bring in $ N million and reduce the thrift 's assets to $ N billion from $ N billion + it said the sale would give it positive tangible capital of $ N million or about N N of assets from a negative $ N million as of sept. N thus bringing centrust close to regulatory standards + centrust said the branch sale would also reduce the company 's large amount of good will by about $ N million + critics however say the branch sale will make centrust more dependent than ever on <unk> deposits and junk bonds + mr. paul <unk> that he intends to further <unk> the size of centrust by not renewing more than $ N billion of <unk> certificates of deposit when they come due + the thrift is also working to unload its junk-bond portfolio by continuing to sell off the bonds and it plans to eventually place some of them in a separate affiliate as required under the new thrift law + on a recent saturday night in the midst of west germany 's most popular prime-time show a <unk> bet the host that she could name any of N different <unk> after just one <unk> while <unk> + the woman won the bet + but perhaps even more remarkable the <unk> <unk> <unk> make a bet regularly wins the top <unk> in the country 's tv ratings sometimes drawing as many as N N of west german households + as the N economic integration approaches europe 's cultural <unk> have taken to the <unk> against american cultural <unk> threatening to impose quotas against such pop <unk> as dallas miami vice and l.a. law + but much of what the europeans want to protect seems every bit as <unk> as what they are trying to keep out + the most <unk> opposition to american tv imports has come from french television and movie producers who have demanded quotas ensuring that a full N N of europe 's tv shows be produced in europe + so far the french have failed to win enough broad-based support to prevail + a <unk> through the television listings and a few <unk> of the european television dial suggest one reason why + while there are some popular action and drama series few <unk> the high culture and <unk> production values one might expect + more european air time is filled with <unk> game shows variety hours movies and talk shows many of which are authorized <unk> of their american counterparts + one of france 's most popular saturday night programs features <unk> seeking out their <unk> <unk> for <unk> <unk> + a <unk> game show has as its host a belgian <unk> to be italian + one of italy 's favorite shows <unk> a <unk> variety show is so popular that viewers <unk> to buy a <unk> product <unk> <unk> whose <unk> were sung each week by <unk> <unk> even though the product did n't exist + <unk> the <unk> <unk> on another typical evening of fun on <unk> <unk> a <unk> won a bet with the show 's host thomas <unk> that he could identify N german <unk> over the telephone + a celebrity guest u.s. ambassador to west germany richard burt also won a bet that someone could pile up $ N worth of quarters on a <unk> coin + mr. burt nonetheless paid the penalty as if he had lost agreeing to spend a day with west german foreign minister <unk> <unk> <unk> and selling their combined weight in potato <unk> + if this seems like pretty weak stuff around which to raise the <unk> barriers it may be because these shows need all the protection they can get + european programs usually target only their own local audience and often only a small portion of that + <unk> in germany or italy rarely make it even to france or great britain and almost never show up on u.s. screens + attempts to produce <unk> programs have generally resulted in disappointment + one annual <unk> the <unk> <unk> song contest featuring <unk> <unk> from each of N european countries has been described as the world 's most boring tv show + another <unk> <unk> <unk> where <unk> from <unk> european countries make <unk> of themselves performing <unk> tasks is a hit in france + a <unk> <unk> under the title almost anything goes <unk> fast + for the most part what 's made here stays here and for good reason + the <unk> of the british crop the literary <unk> that are shown on u.s. public television as <unk> theater make up a relatively small part of british air time + most british programming is more of an acquired taste + there is for instance one man and his dog a <unk> contest among sheep dogs + also <unk> to the british are hours of <unk> <unk> even more hours of lawn bowling <unk> and still more hours of <unk> <unk> + european drama has had better though still mixed fortunes + the most popular such shows focus on narrow national concerns + a french <unk> of dallas called <unk> and set in a french <unk> had a good run in france which ended after the female lead was injured in a <unk> auto accident + <unk> black forest clinic a kind of german <unk> elsewhere set in a health <unk> is popular in germany and has spread into france + italy 's most popular series is a drama called la <unk> or the <unk> which <unk> the fight of an <unk> young investigator in <unk> against the mafia + it was <unk> news in italy earlier this year when the <unk> inspector was <unk> down in the series + spain 's most popular <unk> this year was <unk> the story of an aging <unk> + the trend is pretty well established now that local programs are the most popular with american programs second says brian <unk> a former director of programs for the british broadcasting corp + given a choice everybody will watch a <unk> show + but frequently there is n't much choice + thus europe has begun the recent crusade to produce more worthy shows of its own programs with broader appeal + we 've basically got to start from <unk> to train writers and producers to make shows that other people will want to see concedes <unk> young head of britain 's national film theatre school + while some in the u.s. contend that advertising is the <unk> of television here many believe that its absence is to blame for the european tv industry 's sluggish development + until recently national governments in europe controlled most of the air time and allowed little or no advertising + since production costs were guaranteed it did n't matter that a program could n't be sold abroad or put into <unk> as most american programs are + but not much money was spent on the shows either a situation that encouraged <unk> talk and game shows while discouraging <unk> <unk> + now however commercial channels are coming to most european countries and at the same time satellite and cable technology is spreading rapidly + just last week greece authorized two commercial channels for the first time spain earlier began to allow commercial television alongside its state channels + the result is a new and huge appetite for programming + but perhaps to the <unk> of those calling for quotas most of this <unk> is likely to be filled with the cheapest and most <unk> programming now available reruns usually of shows made in the u.s. + sky channel a <unk> venture of <unk> press <unk> rupert murdoch offers what must be a <unk> cultural mix to most of its audience + the financially struggling station offers programs obviously made available <unk> from its boss 's other ventures + in a madrid hotel room recently a <unk> caught the end of a badly acted series about a fishing boat on australia 's great barrier <unk> only to be urged by the british announcer to stay <unk> for the further <unk> of <unk> the <unk> + <unk> <unk> in bonn <unk> <unk> in milan tim <unk> in london and <unk> <unk> in madrid contributed to this article + british aerospace plc and france 's <unk> s.a. said they are <unk> an agreement to merge their <unk> divisions greatly expanding collaboration between the two defense contractors + the N joint venture which may be dubbed <unk> would have combined annual sales of at least # N billion $ N billion and would be among the world 's largest missile makers + after two years of talks plans for the venture are sufficiently advanced for the companies to seek french and british government clearance + the companies hope for a final agreement by year-end + the venture would strengthen the rapidly growing ties between the two companies and help make them a leading force in european defense contracting + in recent months a string of cross-border mergers and joint ventures have <unk> the <unk> world of european arms manufacture + already british aerospace and french <unk> <unk> <unk> on a british missile contract and on an <unk> control radar system + just last week they announced they may make a joint bid to buy ferranti international signal plc a smaller british defense contractor rocked by alleged accounting fraud at a u.s. unit + the sudden <unk> of british aerospace and <unk> traditionally bitter competitors for middle east and third world weapons contracts is <unk> controversy in western europe 's defense industry + most threatened by closer british <unk> ties would be their respective national rivals including <unk> s.a. in france and britain 's general electric co. plc + but neither <unk> nor <unk> unrelated to stamford <unk> general electric co. are sitting quietly by as their competitors join forces + yesterday a source close to <unk> confirmed that his company may join the ferranti fight as part of a possible consortium that would bid against british aerospace and <unk> + companies with which <unk> has had talks about a possible joint ferranti bid include <unk> britain 's <unk> group plc west germany 's daimler-benz ag and france 's dassault group + but it may be weeks before <unk> and its potential partners decide whether to bid the source indicated + <unk> plans first to study ferranti 's financial accounts which auditors recently said included # N million in <unk> contracts at a u.s. unit international signal & control group with which ferranti merged last year + also any <unk> bid might be blocked by british antitrust regulators ferranti is <unk> 's main competitor on several key <unk> contracts and its purchase by <unk> may <unk> british defense ministry worries about concentration in the country 's defense industry + a consortium bid however would <unk> <unk> 's direct role in ferranti and might consequently <unk> ministry officials + a british aerospace spokeswoman appeared <unk> by the prospect of a fight with <unk> for ferranti competition is the name of the game she said + at least one potential <unk> partner <unk> insists it is n't interested in ferranti + we have nothing to say about this affair which does n't concern us a <unk> official said sunday + the missile venture the british aerospace spokeswoman said is a needed response to the new environment in defense contracting + for both thomson and british aerospace earnings in their home markets have come under pressure from increasingly <unk> defense ministries and middle east sales a traditional mainstay for both companies ' exports have been hurt by five years of weak oil prices + the venture 's importance for thomson is great + thomson feels the future of its defense business depends on building cooperation with other europeans + the european defense industry is consolidating for instance west germany 's siemens ag recently joined <unk> in a takeover of britain 's <unk> co. and daimler-benz agreed to buy <unk> <unk> g.m.b <unk> + in missiles thomson is already <unk> by british aerospace and by its home rival france 's <unk> s.a. to better compete thomson officials say they need a partnership + to justify N ownership of the planned venture thomson would make a cash payment to british aerospace + annual revenue of british aerospace 's missile business is about # N million a thomson spokesman said + british aerospace 's chief missile products include its <unk> family of <unk> <unk> missiles + thomson missile products with about half british aerospace 's annual revenue include the <unk> <unk> missile family + <unk> pipe line co. said it will delay a proposed <unk> N million <unk> us$ N million expansion of its system because canada 's output of crude oil is shrinking + <unk> canada 's biggest oil pipeline operator and a major <unk> of crude to the u.s. said revised industry forecasts indicate that canadian oil output will total about N million barrels a day by N N N lower than a previous estimate + canadian crude production averaged about N million barrels a day during N 's first half about N N below the N level + the capability of existing fields to deliver oil is dropping and oil exploration activity is also down dramatically as many producers shift their emphasis to natural gas said ronald <unk> vice president for government and industry relations with <unk> 's parent <unk> energy inc + mr. <unk> said volume on <unk> 's system is down about N N since january and is expected to fall further making expansion unnecessary until perhaps the mid-1990s + there has been a swing of the <unk> back to the gas side he said + many of canada 's oil and gas producers say the outlook for natural gas is better than it is for oil and have shifted their exploration and development budgets <unk> + the number of active drilling <unk> in canada is down N N from a year ago and the number of completed oil wells is down more than that due to the increasing focus on gas exploration said robert <unk> manager of crude oil with calgary 's independent petroleum association of canada an industry group + mr. <unk> said the main reason for the production decline is shrinking output of light crude from mature conventional fields in western canada + <unk> <unk> about N N of all crude produced in western canada and almost N N of <unk> 's total volume consists of light crude + nearly all of the crude oil that canada exports to the u.s. is <unk> on <unk> 's system whose main line runs from <unk> to major u.s. and canadian cities in the great <unk> region including chicago <unk> toronto and montreal + canada 's current oil exports to the u.s. total about N barrels a day or about N N of net u.s. crude imports said john <unk> president of the new york-based petroleum industry research foundation + that ranks canada as the <unk> source of imported crude behind saudi arabia <unk> and mexico + mr. <unk> said canada 's declining crude output combined with the <unk> output of u.s. crude will help intensify u.s. reliance on oil from overseas particularly the middle east + it 's very much a growing concern + but when something is inevitable you learn to live with it he said + mr. <unk> stressed that the delay of <unk> 's proposed expansion wo n't by itself increase u.s. <unk> on offshore crude however since canadian imports are limited in any case by canada 's falling output + under terms of its proposed <unk> expansion which would have required regulatory approval <unk> intended to add N barrels a day of additional capacity to its system beginning with a modest expansion by N + the system currently has a capacity of N million barrels a day + inland steel industries inc. expects to report that third-quarter earnings dropped more than N N from the previous quarter as a result of reduced sales volume and increased costs + in the second quarter the steelmaker had net income of $ N million or $ N a share including a pretax charge of $ N million related to the settlement of a suit on sales of $ N billion + the company said normal seasonal softness and lost orders caused by prolonged labor talks reduced shipments by N tons in the latest quarter compared with the second quarter + at the same time the <unk> business was hurt by continued increases in materials costs and repair and maintenance expenses as well as higher labor costs under its new contract + the <unk> business was hurt by reduced margins and start-up costs associated with its joseph t. <unk> & son unit + the company said it is beginning to see some <unk> improvements in both the <unk> and <unk> segments which should result in improved results for the fourth quarter + inland said its third-quarter results will be announced later this week + in the year-earlier third quarter when the industry was in the midst of a boom the company had net of $ N million or $ N a share on sales of $ N billion + predicting the financial results of computer firms has been a tough job lately + take microsoft corp. the largest maker of personal computer software and generally considered an industry bellwether + in july the company stunned wall street with the prediction that growth in the personal computer business overall would be only N N in N a modest increase when compared with the <unk> expansion of years past + investors taking this as a sign that a broad industry slump was in the <unk> reacted by selling the company 's stock which lost $ N that day to close at $ N in national over-the-counter trading + but that was all of three months ago + last week microsoft said it expects revenue for its first quarter ended sept. N to increase N N + the announcement caused the company 's stock to surge $ N to close at $ N a share + microsoft 's surprising strength is one example of the difficulty facing investors looking for <unk> about the financial health of the computer firms + it 's hard to know what to expect at this point said peter rogers an analyst at robertson <unk> & co + the industry <unk> <unk> + to illustrate mr. rogers said that of the N <unk> firms he follows half will report for their most recent quarter earnings below last year 's results and half above those results + among those companies expected to have a down quarter are hewlett-packard co. <unk> corp. and sun microsystems inc. generally solid performers in the past + international business machines corp. also is expected to report disappointing results + apple computer inc. meanwhile is expected to show improved earnings for the period ended <unk> + another <unk> message comes from businessland inc. a computer retailer + in july the company reported that booming sales of new personal computers from apple and ibm had resulted in net income more than doubling for its fourth quarter ended june N to $ N million or N cents a share + this month however businessland warned investors that results for its first quarter ended sept. N had n't met expectations + the company said it expects earnings of N to N cents a share down from N cents a share in the year-earlier period + while the earnings picture <unk> observers say the major forces expected to shape the industry in the coming year are <unk> + companies will continue to war over standards + in computer publishing a battle over <unk> is hurting adobe systems inc. which sells software that controls the image produced by printers and displays + until recently adobe had a lock on the market for image software but last month apple adobe 's biggest customer and microsoft <unk> + now the two firms are <unk> on an alternative to adobe 's approach and analysts say they are likely to carry ibm the biggest seller of personal computers along with them + the short-term outlook for adobe 's business however appears strong + the company is beginning to ship a new software program that 's being <unk> as a <unk> for owners of <unk> printers sold by apple + the program is aimed at improving the quality of printed material + john <unk> adobe 's chief executive officer said the mountain view calif. company has been receiving N calls a day about the product since it was demonstrated at a computer publishing conference several weeks ago + meanwhile competition between various operating systems which control the basic functions of a computer <unk> trouble for software firms generally + it creates uncertainty and usually <unk> down sales said <unk> <unk> an analyst at <unk> financial group + mr. <unk> said this probably is behind the expected weak performance of <unk> corp. maker of a widely used computer publishing program + he expects <unk> to report earnings of N cents a share on revenues of $ N million for its third quarter compared with earnings of N cents a share on revenue of N million in the year-earlier period + <unk> officials could n't be reached for comment + on the other hand the battle of the bus is expected to grow increasingly irrelevant + a bus is the data highway within a computer + ibm is backing one type of bus called <unk> while the nine other leading computer makers including <unk> and compaq computer corp. have chosen another method + users do n't care about the bus said daniel benton an analyst at goldman sachs & co + he said apple 's family of <unk> computers for instance uses four different buses and no one seems to mind + the gap between winners and <unk> will grow + in personal computers apple compaq and ibm are expected to tighten their hold on their business + at the same time <unk> firms will continue to lose ground + some lagging competitors even may leave the personal computer business altogether + <unk> technology for instance is considered a candidate to sell its troubled operation + <unk> has done well establishing a distribution business but they have n't delivered products that sell said <unk> brown an analyst at prudential-bache securities + mr. brown estimates <unk> whose terminals business is strong will report a loss of N cents a share for its quarter ended <unk> + personal-computer makers will continue to eat away at the business of more traditional computer firms + <unk> powerful <unk> computers designed with one or more microprocessors as their brains are expected to increasingly take on functions carried out by more expensive minicomputers and mainframes + the guys that make traditional hardware are really being <unk> by <unk> machines said mr. benton + as a result of this trend longtime <unk> <unk> ibm and digital equipment corp. are scrambling to <unk> with <unk> systems of their own + but they will have to act quickly + mr. benton expects compaq to unveil a family of high-end personal computers later this year that are powerful enough to serve as the hub for communications within large networks of <unk> machines + a <unk> of new computer companies also has targeted this <unk> market + population drain ends for midwestern states + iowa is making a comeback + so are indiana ohio and michigan + the population of all four states is on the <unk> according to new census bureau estimates following declines throughout the early 1980s + the gains to be sure are rather small + iowa for instance saw its population grow by N people or N N between N and N the census bureau says + still even that modest increase is good news for a state that had n't grown at all since N + between N and N north <unk> was the only state in the midwest to lose population a loss of N people + six of the N midwestern states have been growing steadily since N illinois kansas minnesota missouri south <unk> and wisconsin + the northeast has been holding its own in the population race + seven of nine states have grown each year since N including new york which lost N N of its population during the 1970s + and although pennsylvania and massachusetts suffered slight declines earlier in the decade they are growing again + at the same time several states in the south and west have had their own population turnaround + seven states that grew in the early 1980s are now losing population west virginia mississippi louisiana oklahoma <unk> wyoming and alaska + overall though the south and west still <unk> the northeast and midwest and fast-growing states like florida and california ensure that the pattern will continue + but the growth gap between the sun belt and other regions has clearly started narrowing + more elderly maintain their independence + thanks to modern medicine more couples are growing old together + and even after losing a spouse more of the elderly are staying independent + a new census bureau study of the <unk> population shows that N N of people aged N to N were living with a spouse in N up from N N in N + this does n't mean they 're less likely to live alone however + that share has remained at about N N since N + what has changed is that more of the young elderly are living with spouses rather than with other <unk> such as children + in N N N of those aged N to N lived with <unk> other than spouses down from N N in N + as people get even older many become <unk> + but even among those aged N and older the share living with a spouse rose slightly to N N in N from N N in N + like their younger counterparts the older elderly are less likely to live with other <unk> + only N N of those aged N and older lived with <unk> other than spouses in N down from N N in N + the likelihood of living alone beyond the age of N has increased to N N from N N + more people are remaining independent longer presumably because they are better off <unk> and financially + careers count most for the <unk> + many affluent people place personal success and money above family + at least that 's what a survey by ernst & young and <unk> <unk> <unk> indicates + two-thirds of respondents said they strongly felt the need to be successful in their jobs while fewer than half said they strongly felt the need to spend more time with their families + being successful in careers and spending the money they make are top priorities for this group + unlike most studies of the affluent market this survey excluded the <unk> + average household income for the sample was $ N and average net assets were reported as $ N + the goal was to learn about one of today 's fastest-growing income groups the <unk> class + although they represent only N N of the population they control nearly one-third of discretionary income + across the board these consumers value quality buy what they like rather than just what they need and appreciate products that are distinctive + despite their considerable incomes and assets N N of the respondents in the study do n't feel financially secure and <unk> do n't feel that they have made it + <unk> percent do n't even feel they are financially well off + many of the affluent are n't comfortable with themselves either + about N N do n't feel they 're more able than others + while <unk> feel some <unk> about being affluent only N N give $ N or more to charity each year + <unk> percent attend <unk> services regularly at the same time N N feel that in life one sometimes has to compromise one 's principles + odds and ends + the number of women and minorities who hold jobs in top management in the nation 's largest banks has more than doubled since N + the american bankers association says that women make up N N of officials and managers in the top N banks up from N N in N + the share of minorities in those positions has risen to N N from N N + <unk> personal income in the u.s. grew faster than inflation last year according to the bureau of economic analysis + the amount of income <unk> up for each man woman and child was $ N in N up N N from $ N in N + per capita personal income ranged from $ N in mississippi to $ N in connecticut + there are N million students in college this fall up N N from N the national center for education statistics estimates + about N N are women and N N are <unk> students + this small dallas suburb 's got trouble + trouble with a capital <unk> and that <unk> with <unk> and that stands for pool + more than N years ago prof. harold hill the con man in meredith <unk> 's the music man warned the citizens of river city iowa against the game + now <unk> spirits on <unk> 's town council have barred the town 's <unk> hotel the grand <unk> from <unk> three free pool tables in its new <unk> + mayor lynn <unk> and two members of the council said they were worried about setting a precedent that would permit pool halls along <unk> 's main street + and the mayor in an <unk> that bears a <unk> <unk> to prof. hill 's warned that alcohol leads to betting which leads to fights + the council 's action is yet another blow to a sport that its fans claim has been <unk> <unk> for years + obviously they 're not in touch with what 's going on says tom <unk> vice president of the national <unk> <unk> association + pool is hot in new york and chicago he insists where upscale <unk> places are adding tables + with today 's tougher drunk driving laws he adds people do n't want to just sit around and drink + besides <unk> behavior seems unlikely at the grand <unk> where rooms average $ N a night and the cheap mixed drinks go for $ N a pop + at the <unk> manager elizabeth <unk> wo n't admit <unk> in jeans <unk> or tennis shoes + but a majority of the <unk> council did n't buy those arguments + introducing pool argued <unk> <unk> <unk> would be dangerous + it would open a can of <unk> + <unk> is no <unk> to cans of <unk> either + after its previous mayor committed <unk> last year an investigation disclosed that town officials regularly voted on their own projects gave special favors to developer friends and dipped into the town 's <unk> for trips and <unk> + the <unk> embarrassed town officials although they argued that the problems were n't as severe as the media suggested + now comes the pool <unk> + i think there 's some people worried about something pretty ridiculous <unk> john <unk> says + i thought this was all taken care of in the music man + the only thing robert goldberg could <unk> about cbs 's new show island son leisure & arts sept. N was the local color unfortunately neither he nor the producers of the show have done their <unk> + for instance <unk> white is not the ultimate <unk> <unk> <unk> is + richard <unk> <unk> as a <unk> <unk> <unk> in a <unk> <unk> and rolling up its long <unk> + and the local expression for brother is <unk> not <unk> + and even if a <unk> would wear flowers in her hair while on duty if she were engaged she would know to wear them behind her left not right <unk> + sorry the show does not even have the one <unk> quality of genuine local color + <unk> davis + of all the ethnic <unk> in america which is the most troublesome right now + a good bet would be the tension between blacks and <unk> in new york city + or so it must seem to <unk> mason the veteran jewish <unk> appearing in a new abc <unk> airing on tuesday nights N p.m. edt + not only is mr. mason the star of chicken soup he 's also the <unk> of a <unk> tradition dating back to duck soup and he 's currently a man in hot water + here in neutral language is the <unk> of mr. mason 's remarks quoted first in the village voice while he was a paid spokesman for the rudolph giuliani mayoral campaign and then in newsweek after he and the campaign <unk> company + mr. mason said that many jewish voters feel guilty toward blacks so they support black candidates <unk> + he said that many black voters feel bitter about racial discrimination so they too support black candidates <unk> + he said that <unk> have contributed more to black causes over the years than vice <unk> + of course mr. mason did not use neutral language + as a <unk> of ethnic humor from the old days on the <unk> belt live television and the <unk> circuit mr. mason <unk> reached for the <unk> + he said <unk> were sick with <unk> and he called david dinkins mr. giuliani 's black opponent a fancy <unk> with a <unk> + if mr. mason had used less <unk> language to <unk> his <unk> analysis of the voting behavior of his fellow new <unk> would the water be quite so hot + it probably would because few or none of the people upset by mr. mason 's remarks have bothered to <unk> between the substance of his comments and the fact that he used <unk> language + in addition some of mr. mason 's critics have implied that his type of ethnic humor is itself a form of <unk> + for example the new york state counsel for the <unk> said that mr. mason is like a <unk> + people are fast leaving the place where he is stuck + these critics fail to <unk> between the type of ethnic humor that aims at <unk> another group such as polish jokes and the type that is <unk> aiming <unk> as well as <unk> + the latter typically is the humor of the <unk> and it was <unk> by both blacks and <unk> on the <unk> and <unk> stage as a means of <unk> their white and <unk> audiences along with themselves + in the hands of a <unk> like <unk> bruce this <unk> <unk> could cut both the <unk> and the audience to <unk> + but <unk> by a pro like <unk> mason it is a <unk> form of <unk> + why <unk> + because despite all the media <unk> about comedy and politics not <unk> they are similar in one respect both can serve as <unk> for easing <unk> and <unk> the <unk> of groups in conflict + that 's why it 's dangerous to have <unk> thought police on college <unk> and elsewhere <unk> all critical mention of group differences + as elizabeth <unk> wrote in the new york times just before the mason <unk> perhaps <unk> would not <unk> over with such intensity if honest differences were allowed to <unk> + the question is if group conflicts still exist as <unk> they do and if mr. mason 's type of ethnic humor is <unk> then what other means do we have for letting off steam + do n't say the tv <unk> because that happens to be a <unk> that in its desperate need to attract everybody and <unk> nobody resembles politics more than it does comedy + it is true that the best <unk> do allow group differences to <unk> <unk> vs. blue-collar <unk> in <unk> children vs. adults in the cosby show + but these are not the differences that make <unk> + in chicken soup mr. mason plays <unk> a jewish <unk> <unk> <unk> lynn <unk> an irish widow and mother of three against the wishes of his mother <unk> <unk> and her brother michael <unk> <unk> + it 's worth noting that both <unk> <unk> are <unk> + at least they both speak with strong <unk> as do <unk> and <unk> + it could n't be more obvious that chicken soup is being made from an old <unk> + and a safe one imagine if the <unk> in question were between an orthodox <unk> and a member of the nation of <unk> + back in the 1920s the play and movie versions of <unk> 's irish rose made the theme of <unk> between the <unk> <unk> of jewish and irish <unk> so popular that its author anne <unk> lost a <unk> suit on the grounds that the plot has entered the public <unk> + and it has remained there as <unk> by its <unk> in a N cbs <unk> called <unk> <unk> <unk> whose sole <unk> was that it led to the <unk> marriage of meredith <unk> and david <unk> + clearly the question with chicken soup is not whether the pot will <unk> over but whether it will <unk> at all + so far the <unk> have been few and far between + part of the problem is the tendency of all <unk> ever since the <unk> days of norman <unk> to <unk> about social issues + to some extent this tendency emerges whenever the show tries to <unk> us about ethnic <unk> by <unk> them + for instance michael <unk> <unk> not because he 's a <unk> jewish businessman but because he <unk> his <unk> job as a salesman in order to become a social worker + even more <unk> is the <unk> between <unk> <unk> and mr. mason 's comic <unk> + the best moments in the show occur at the beginning and the end and occasionally in the middle when mr. mason <unk> into his <unk> mode and starts <unk> out that old-fashioned jewish <unk> to other people as well as to himself + but too often these <unk> lack spark because this <unk> like all <unk> is <unk> about <unk> mr. mason 's stock in trade ethnic differences + i 'm not suggesting that the producers start putting together episodes about topics like the <unk> dispute over the <unk> <unk> at <unk> + that issue like racial <unk> in new york city will have to cool down not heat up before it can <unk> + but i am suggesting that they stop requiring mr. mason to <unk> his classic <unk> with some line about <unk> for other people that would sound <unk> on the <unk> of miss america + at your age <unk> you ought to know that you ca n't make soup without turning up the <unk> + the official white house reaction to a plunge in stock prices has a <unk> history of calm right up through friday + treasury secretary nicholas brady said in a statement friday that the stock-market decline does n't signal any fundamental change in the condition of the economy + the economy he added remains <unk> and the outlook is for continued moderate growth + sound familiar + here 's what ronald reagan said after the N crash the underlying economy remains sound + there is nothing wrong with the economy all the <unk> are up + heard that before + after the N crash herbert <unk> said the fundamental business of the country is on a sound and <unk> basis + james robinson N years old was elected president and chief executive officer of this maker of magnetic recording heads for disk drives + he has been president and chief executive officer of <unk> electronics corp. a division of north american <unk> corp. itself a subsidiary of n.v <unk> of the netherlands + charles j. lawson jr. N who had been acting chief executive since june N will continue as chairman + the former president and chief executive eric w. <unk> resigned in june + the senate 's decision to approve a <unk> deficit-reduction bill without a capital-gains tax cut still leaves open the possibility of <unk> a gains tax reduction this year + late friday night the senate voted N to approve an estimated $ N billion measure that had been stripped of hundreds of provisions that would have widened rather than narrowed the federal budget deficit + lawmakers drastically <unk> the bill to blunt criticism that it was bloated with special-interest tax breaks and spending increases + we 're putting a deficit-reduction bill back in the category of being a deficit-reduction bill said senate budget committee chairman james <unk> d. <unk> + but senate supporters of the <unk> legislation said that other bills would soon be moving through congress that could carry some of the measures that had been cast aside including a capital-gains tax cut + in addition the companion deficit-reduction bill already passed by the house includes a capital-gains provision + house-senate negotiations are likely to begin at <unk> and last for a while + no one can predict exactly what will happen on the house side said senate minority leader robert dole r. <unk> + but he added i believe republicans and democrats will work together to get capital-gains reform this year + white house budget director richard darman told reporters yesterday that the administration would n't push to keep the capital-gains cut in the final version of the bill + we do n't need this as a way to get capital gains he said + house budget committee chairman leon <unk> d. calif said in an interview if that 's the signal that comes from the white house that will help a great deal + the senate 's decision was a setback for president bush and will make approval of a capital-gains tax cut less certain this year + opponents of the cut are playing <unk> + senate majority leader george mitchell d. maine said he was confident that any house-senate agreement on the deficit-reduction legislation would n't include a capital-gains tax cut + and a senior aide to the house ways and means committee where tax legislation <unk> said there are n't any plans to produce another tax bill that could carry a gains tax cut this year + one obvious place to <unk> a capital-gains tax cut and perhaps other popular items stripped from the deficit-reduction bill is the legislation to raise the federal borrowing limit + such legislation must be enacted by the end of the month + the senate bill was <unk> back in an attempt to speed deficit-reduction through congress + because the legislation has n't been completed president bush has until midnight tonight to enact across-the-board spending cuts mandated by the gramm-rudman deficit-reduction law + senators hope that the need to avoid those cuts will pressure the house to agree to the <unk> bill + the house appears reluctant to join the senators + a key is whether house republicans are willing to <unk> to their senate colleagues ' decision to drop many pet provisions + although i am encouraged by the senate action said chairman dan <unk> d. ill of the house ways and means committee it is uncertain whether a clean bill can be achieved in the <unk> conference with the senate + another big question <unk> over the debate is what president bush thinks + he has been <unk> a <unk> bill without a guaranteed vote on his capital-gains tax cut + but republican senators saw no way to overcome a procedural hurdle and <unk> the N votes needed to win the capital-gains issue on the floor so they went ahead with the <unk> bill + the senate bill was stripped of many popular though <unk> provisions a number of which are included in the house-passed bill + these include a child-care initiative and <unk> of <unk> tax breaks for low-income housing and <unk> expenditures + also missing from the senate bill is the house 's repeal of a law called section N that <unk> companies to give <unk> workers comparable health benefits to top paid executives + one <unk> provision that was originally in the senate bill but was cut out because it lost money was the proposal by chairman lloyd <unk> d. texas of the senate finance committee to expand the deduction for individual retirement accounts + mr. <unk> said he hopes the senate will consider that measure soon + to the <unk> of some doctors the bill dropped a plan passed by the finance committee that would have <unk> the entire <unk> system under medicare + to the <unk> of many low-income people efforts to boost medicaid funding especially in rural areas also were <unk> + asked why senators were giving up so much new mexico sen. pete <unk> the ranking republican on the senate budget committee said we 're looking like <unk> + things had just gone too far + sen. dole said that the move required sacrifice by every senator + it worked others said because there were no exceptions all <unk> provisions were <unk> + the senate also dropped a plan by its finance committee that would have increased the income <unk> beyond which senior citizens have their social security benefits reduced + in addition the bill dropped a plan to make permanent a N N <unk> tax on long-distance telephone calls + it no longer includes a plan that would have <unk> what remains of the <unk> method of accounting which is used by military contractors to reduce their tax burden + it also drops a provision that would have permitted corporations to use excess pension funds to pay health benefits for current <unk> + also <unk> was a <unk> increase in the maximum <unk> safety and health administration penalties which would have raised $ N million in fiscal N + a provision that would have made the social security administration an independent agency was <unk> + the approval of the senate bill was especially sweet for sen. mitchell who had proposed the streamlining + mr. mitchell 's relations with budget director darman who pushed for a capital-gains cut to be added to the measure have been <unk> since mr. darman chose to <unk> the maine democrat and deal with other lawmakers earlier this year during a dispute over drug funding in the fiscal N supplemental spending bill + the deficit reduction bill contains $ N billion in tax increases in fiscal N and $ N billion over five years + the <unk> provisions which affect mostly corporations would + prevent companies that have made leveraged buy-outs from getting federal tax refunds resulting from losses caused by interest payments on debt issued to finance the buy-outs effective aug. N N + require mutual funds to include in their taxable income dividends paid to them on the date that the dividends are declared rather than received effective the day after the tax bill is enacted + close a <unk> regarding employee stock ownership plans effective june N N that has been <unk> by investment bankers in corporate takeovers + the measure <unk> a N N exclusion given to banks on the interest from loans used to acquire securities for an <unk> if the <unk> owns less than N N of the employer 's stock + curb junk bonds by ending tax benefits for certain securities such as zero-coupon bonds that postpone cash interest payments + raise $ N million by <unk> for one year an automatic reduction in airport and <unk> taxes + speed up the collection of the payroll tax from large companies effective august N + impose a tax on <unk> chemicals such as those used in air <unk> and in <unk> beginning at $ N a pound starting next year + <unk> income taxes from the <unk> of certain farm workers currently exempt from <unk> + change the collection of gasoline <unk> taxes to weekly from <unk> effective next year + restrict the ability of real estate owners to escape taxes by <unk> one piece of property for another instead of selling it for cash + increase to $ N a person from $ N the international <unk> departure tax and impose a $ <unk> tax on international departures by commercial ships + the measure also includes spending cuts and increases in federal fees + among its provisions + reduction of medicare spending in fiscal N by some $ N billion in part by curbing increases in <unk> to physicians + the plan would impose a brief freeze on physician fees next year + removal of the u.s. postal service 's operating budget from the federal budget reducing the deficit by $ N billion + a similar provision is in the house version + authority for the federal aviation administration to raise $ N million by charging fees for commercial <unk> rights at new york 's <unk> and john f. kennedy international airports <unk> international airport in chicago and national airport in washington + increases in nuclear regulatory commission fees totaling $ N million + direction to the u.s. coast guard to collect $ N million from users of coast guard services + raising an additional $ N million by increasing existing federal communications commission fees and penalties and establishing new fees for <unk> radio operators ship stations and mobile radio facilities + john e. <unk> contributed to this article + in response to your overly optimistic <unk> piece on how long unemployment lasts people patterns sept. N i am in the communications field above entry level + i was laid off in august N and after a <unk> and <unk> job search was hired in august N + my unemployment insurance ran out before i found a job i found cutbacks and layoffs in many companies + the statistics quoted by the new census bureau report <unk> from N to N are out of date certainly as an average for the northeast and possibly for the rest of the country + i think what bothered me most about the piece was that there seemed to be an underlying attitude to tell your readers all is well if you 're getting laid off do n't worry and if you 're <unk> it 's a seller 's market + to top it off you <unk> the <unk> showing the average number of months in a job search as time off + are you <unk> + looking for a job was one of the most anxious periods of my life and is for most people + your paper needs a serious reality check + <unk> <unk> + cambridge mass + bull <unk> information systems inc. is a u.s. <unk> unit of cie. des machines bull + in friday 's edition the name of the unit was misstated + moody 's investors service said it reduced its rating on $ N million of subordinated debt of this beverly hills calif. thrift citing turmoil in the market for <unk> high-yield securities + the agency said it reduced its rating on the thrift 's subordinated debt to b-2 from <unk> and will keep the debt under review for possible further downgrade + columbia savings is a major holder of so-called junk bonds + new federal legislation requires that all thrifts <unk> themselves of such speculative securities over a period of years + columbia savings officials were n't available for comment on the downgrade + franklin savings association <unk> kan. + moody 's investors service inc. said it downgraded its rating to b-2 from <unk> on less than $ N million of this thrift 's senior subordinated notes + the rating concern said franklin 's troubled diversification record in the securities business was one reason for the downgrade citing the troubles at its <unk> rothschild subsidiary and the possible sale of other subsidiaries + they perhaps had concern that we were getting out of all these said franklin president <unk> h. hall + i think it was a little <unk> on their part + just when it seemed safe to go back into stocks wall street suffered another severe attack of nerves + does this signal another black monday is coming + or is this an extraordinary buying opportunity just like oct. N N eventually turned out to be + here 's what several leading market experts and money managers say about friday 's action what happens next and what investors should do + joseph <unk> + i 'm the only one who said there would be an october massacre all through late august and september says mr. <unk> once a widely followed market <unk> and still a well-known newsletter writer + everyone will tell you that this time is different from N he says + well in some ways it is different but technically it is just the same + if you 're a <unk> you <unk> the signals + right now they 're telling me to get the hell out and stay out + i see no major support until N + i see a possibility of going to N this month + mr. <unk> says he would n't even think of buying until at least N to N stocks have hit 52-week lows about N stocks hit new lows friday + most people he says have no idea what a massacre pattern looks like + <unk> <unk> + a <unk> analyst with shearson lehman hutton inc. ms. <unk> had warned clients to take their money out of the market before the N crash + friday 's big drop she says was not a crash + this was an october massacre like those that occurred in N and N + now as in those two years her stock market indicators are positive + so she thinks the damage will be short-lived and contained + those <unk> lasted one to four weeks and took the market N N down she says + this is exactly the same thing as far as i 'm concerned + thus she says if the dow jones industrial average dropped below N it would just be a <unk> + my advice is to buy + as she <unk> it the average stock now sells for about N times companies ' earnings + she says that ratio could climb to N given current interest rates and still be within the range of fair value + <unk> davis + friday 's fall marks the start of a bear market says mr. davis president of <unk> davis research inc + but mr. davis whose views are widely respected by money managers says he expects no <unk> crash + there was a unique combination in N he says + margin debt was at a record high + there was tremendous public enthusiasm for stock mutual funds + the main thing was portfolio insurance a mechanical trading system intended to protect an investor against losses + a hundred billion dollars in stock was subject to it + in N such selling contributed to a <unk> effect + today could even be an up day mr. davis says if major brokerage firms agree to <unk> from program trading + over the next several months though he says things look bad + i think the market will be heading down into november he says + we will probably have a year-end rally and then go down again + sort of a <unk> bear market + he expects the downturn to carry the dow jones industrial average down to around N sometime next year + that would be a normal bear market he says + i guess that 's my forecast + leon g. <unk> + i do n't think the market is going through another october <unk> + i do n't think that 's the case at all says mr. <unk> a partner at goldman sachs & co. and chairman of goldman sachs asset management + mr. <unk> sees this as a good time to pick up bargains but he does n't think there 's any need to rush + i expect the market to open weaker monday but then it should find some stability + he <unk> off several major differences between now and two years ago + unlike N interest rates have been falling this year + unlike N the dollar has been strong + and unlike N the economy does n't appear to be in any danger of <unk> + but the economy 's slower growth this year also means the outlook for corporate profits is n't good he says + so it 's a very mixed bag + thus he concludes this is not a good environment to be fully invested in stocks + if i had come into friday on margin or with very little cash in the portfolios i would not do any buying + but we came into friday with a conservative portfolio so i would look to do some modest buying on behalf of clients + we 're going to look for some of the <unk> companies that got <unk> friday + john kenneth <unk> + this is the latest <unk> of the capacity of the financial community for <unk> <unk> says mr. <unk> an economist + i see this as a reaction to the whole junk bond explosion he says + the explosion of junk bonds and takeovers has <unk> a lot of <unk> securities in the hands of investors and loaded the corporations that are the <unk> of takeovers or feared takeovers with huge amounts of debt rather than equity + this has both made investors uneasy and the corporations more vulnerable + nevertheless he says a depression does n't appear likely + there is more <unk> in the economy at large than we commonly <unk> he says + it takes more error now to have a major depression than back in the <unk> much as the financial community and the government may try + mario <unk> + new york money manager mario <unk> an expert at <unk> takeover candidates says that takeovers are n't totally gone + companies are still going to buy companies around the world he says + examples are ford looking at jaguar bellsouth looking at lin broadcasting + these sorts of takeovers do n't require junk bonds or big bank loans to finance them so mr. <unk> figures they will continue + the market was up N N since president bush took office mr. <unk> says so a correction was to be expected + he thinks another crash is unlikely and says he was <unk> at selected stocks during friday 's plunge + stocks that were thrown out just on an emotional basis are a great opportunity this week for guys like me he says + jim rogers + it seems to me that this is the <unk> that has finally <unk> the balloon says mr. rogers a professor of finance at columbia university and former <unk> of one of the most successful hedge funds in history quantum fund + he sees economic problems financial problems ahead for the u.s. with a fairly strong possibility of a recession + friday you could n't sell dollars he says + dealers would give you a quote but then refuse to make the trade + if the dollar stays weak he says that will add to <unk> pressures in the u.s. and make it hard for the federal reserve board to ease interest rates very much + mr. rogers wo n't decide what to do today until he sees how the london and tokyo markets go + he recommends that investors sell <unk> stocks but hang on to some other stocks especially utilities which often do well during periods of economic weakness + frank <unk> + many people now claim to have predicted the N crash + <unk> newsletter writer francis <unk> <unk> actually did it he stated in writing in september N that the dow jones industrial average was likely to decline about N points the following month + mr. <unk> says what happens now will depend a good deal on the federal reserve board + if it promptly cuts the discount rate it charges on loans to banks he says that could quiet things down + if not we could go to N very soon + frank w. <unk> + stock prices would still have to go down some additional amount before we become positive on stocks says mr. <unk> president and managing director of renaissance investment management inc. in cincinnati + renaissance which manages about $ N billion drew stiff criticism from many clients earlier this year because it pulled entirely out of stocks at the beginning of the year and thus missed a strong rally + renaissance is keeping its money entirely in cash equivalents primarily u.s. treasury bills + <unk> probably are the right place to be he says + regarding the oct. N letter to the editor from rep. tom <unk> chairman of the house subcommittee on employment and housing alleging + N that your sept. N editorial <unk> committees was <unk> inaccurate and deliberately misleading + i thought your editorial was <unk> accurate and deliberately <unk> + N that mr. <unk> supported the rights of the witnesses to take the fifth amendment + yes he did + as i watched him on <unk> i heard him speak those lovely words about the bill of rights which he quotes from the <unk> of the hearings + he did repeat those nice <unk> several times as an indication of his support for the constitution + he used about N words defending the witnesses ' constitutional rights + unfortunately by my rough guess he used better than N words <unk> <unk> on the witnesses for exercising the fifth + he <unk> his <unk> of constitutional meat between large <unk> of <unk> commentary + as your editorial <unk> pointed out samuel <unk> former hud secretary and <unk> wilson mr. <unk> 's former aide are currently being held up to <unk> for taking the fifth amendment + that certainly is not the supposed distorted reading indicated by mr. <unk> + N that his committee does not deal with any possible criminal activity at hud + my colleagues and i fully realize we are not a court etc + <unk> <unk> + by any reasonable man <unk> mr. <unk> and his colleagues have a whole bunch of people tried and convicted + apparently their verdict is in + right now they 're pursuing evidence + that 's not a bad way to proceed just somewhat different from standard american practice + how was that practice referred to when i was in school + <unk> yes something called a star chamber + of course mr. <unk> <unk> protest that his subcommittee simply seeks information for legislative change + no doubt that 's partially true + everything that mr. <unk> says in his letter is partially true + he 's right about his subcommittee 's responsibilities when it comes to obtaining information from prior hud officials + but if his explanation of <unk> is true why is his investigation so <unk> as to identify criminal activity + why not simply questions designed to identify sources and causes of waste and <unk> + such as what happened when congress wanted to know about $ N toilet seats or whatever they supposedly cost + no mr. <unk> 's complaints simply wo n't wash + N that the journal <unk> the <unk> fraud waste <unk> <unk> and abuse of the public that took place while mr. <unk> was secretary of hud etc. and so forth + no to my mind the journal did not defend <unk> fraud waste <unk> <unk> and abuse of the public trust + it defended appropriate constitutional <unk> and practical common sense + the problem which the journal so <unk> pointed out in a number of articles is not the likes of mr. <unk> who after all is really a bit player on the stage but the attempt by congress to enhance itself into a <unk> body + of course we 've also got a judiciary that seeks the same objective + the system is the problem not an individual member + individuals can always have their hands <unk> + it 's when such <unk> does n't occur that we 've got trouble + i do not by any means defend hud management + but i think the kind of congressional investigation that has been pursued is a far greater danger to american <unk> of liberty and freedom than any <unk> and yes maybe <unk> within hud could possibly generate + the last time i saw a similar congressional hearing was when <unk> <unk> joe <unk> did his work + raymond <unk> + <unk> n.j + i disagree with the statement by mr. <unk> that one should not draw an adverse <unk> against former hud officials who <unk> their fifth amendment privilege against <unk> in congressional hearings + the fifth amendment states in relevant part that no person shall be <unk> in any criminal case to be a witness against himself + this privilege against <unk> <unk> the drawing of an adverse <unk> against a criminal defendant who chooses not to testify + thus in a criminal case a prosecutor can not comment on a defendant 's failure to testify nor can the defendant be <unk> to take the stand as a witness thus forcing him to take the fifth + the privilege however has been limited in <unk> with its plain language to protect the defendant in criminal matters only + the supreme court and some states have specifically recognized that the fifth amendment does not preclude the <unk> where the privilege is claimed by a party to a civil cause + <unk> v. <unk> N u.s. N N + thus in a civil case a defendant may be called as a witness he may be forced to testify or take the fifth and his taking of the fifth may permit the drawing of an adverse <unk> against him in the civil matter + he may take the fifth in a civil matter only if he has a good faith and <unk> belief that his testimony may subject him to criminal prosecution + allowing the defendant to take the fifth in a civil matter is not based on a constitutional right to refuse to testify where one 's testimony <unk> him in the civil matter but because the testimony in the civil matter could be <unk> used against him in a subsequent criminal prosecution + <unk> the risk of such prosecution a court may order the defendant to testify + thus when mr. <unk> asserted the fifth in a <unk> proceeding particularly after presumably receiving extensive advice from legal counsel one must conclude that he held a <unk> <unk> belief that his testimony could be used against him in a subsequent criminal prosecution + the subcommittee congress and the american public have every right to draw the adverse <unk> and to <unk> with mr. <unk> 's own belief that his testimony could help <unk> him of a crime + drawing the adverse <unk> in a <unk> congressional hearing does not <unk> the fifth amendment shield against <unk> + clark s. <unk> jr + <unk> park <unk> + it was friday the 13th and the stock market plummeted nearly N points + just a <unk> + or is <unk> fear of the number N justified + in <unk> a so-called friday the 13th effect has been set up and shot down by different professors + robert <unk> and <unk> <unk> professors of finance at the university of miami found evidence that the market is spooked by friday the 13th + but their study which <unk> the N period has since been shown to be <unk> by an <unk> choice of data + in the <unk> the market took falls nine times in a row on friday the <unk> + but the date tends to be a plus not a minus for stocks according to yale <unk> a <unk> of stock market <unk> + another study found that the N <unk> the 13th in the N period had higher than average returns higher even than <unk> in general which tend to be strong days for stock prices + on the only other friday the 13th this year the dow jones industrial average rose about four points + professor <unk> says the original study titled friday the 13th part <unk> was published <unk> + in a similar <unk> he adds that the anniversary of the N crash and saturday 's full moon could have played a part too in friday 's market activity + <unk> of those during the N crash that as stock prices plummeted and trading activity <unk> some phone calls to market makers in over-the-counter stocks went <unk> + we could n't get dealers to answer their phones said robert king senior vice president of otc trading at <unk> co. in atlanta + it was like the friday before black monday two years ago + whether <unk> phone calls had any effect or not nasdaq stocks sank far less than those on the new york and american exchanges + nonetheless the nasdaq composite index suffered its biggest point decline of the year and its sixth worst ever <unk> N or N N to N + ten points of the drop occurred during the last N minutes of trading + by comparison the new york stock exchange composite tumbled N N friday and the american stock exchange composite fell N N + on oct. N N the nasdaq composite fell N points or N N followed by its devastating <unk> or N N slide three days later + nasdaq volume friday totaled N million shares which was only the fifth busiest day so far this year + the <unk> record of N million shares was set on oct. N + there was n't a lot of volume because it was just impossible to get stock moved said <unk> <unk> <unk> president of <unk> <unk> <unk> a new york company that makes markets in thousands of otc issues + most of the complaints about <unk> phone calls came from regional brokers rather than individual investors + mr. king of <unk> and others were quick to add that they believe the problem stemmed more from traders ' inability to handle the volume of calls rather than a <unk> attempt to avoid making trades + the subject is a <unk> one for nasdaq and its <unk> companies which were widely criticized two years ago following complaints from investors who could n't reach their brokers or trade in the chaos of the crash + peter dapuzzo head of retail equity trading at shearson lehman hutton declared it was the last hour of trading on a friday + there were too many phones ringing and too many things happening to expect market makers to be as efficient as robots + it was n't <unk> we were all busy + james <unk> head of otc trading at hambrecht & quist in san francisco said it was just like two years ago + everybody was trying to do the same thing at the same time + <unk> mullins the otc trading chief at dean witter reynolds in new york said <unk> that his company executed every order it received by the close of trading + but he added you can only take one call at a time + market makers keep supplies of stock on hand to maintain orderly trading when imbalances occur + on days like friday that means they must buy shares from sellers when no one else is willing to + when selling is so <unk> prices fall <unk> and fast + two years ago faced with the possibility of heavy losses on the stocks in their inventories market makers themselves began <unk> shares <unk> the slide in otc stock prices + on friday some market makers were selling again traders said + but with profits sagging on wall street since the crash companies have kept smaller share <unk> on hand + mr. <unk> of hambrecht & quist said some prices fell without trades taking place as market makers kept dropping the prices at which they would buy shares + everyone was hitting everyone else 's bid he said + so while otc companies incurred losses on friday trading officials said the damage was n't as bad as it was in N + two years ago we were carrying huge inventories and that was the big <unk> + i do n't know of anyone carrying big inventories now said mr. king of <unk> + tony <unk> head of equity trading at <unk> <unk> & <unk> in minneapolis said that <unk> <unk> actually made money on friday + it helped that his inventory is a third smaller now than it was two years ago he said + joseph <unk> president of the national association of securities dealers which oversees the nasdaq computerized trading system said that despite the rush of selling he never considered the situation an emergency + the pace of trading was orderly he said + nasdaq 's small order execution system worked <unk> as did the automated system for larger trades according to mr. <unk> + nevertheless the shock of another steep plunge in stock prices undoubtedly will shake many investors ' confidence + in the past the otc market <unk> on a firm base of <unk> participation + because nasdaq 's trading volume has n't returned to <unk> levels traders and otc market officials hope the damage wo n't be permanent + but they are worried + we were just starting to get the public 's confidence back <unk> mr. mullins of dean witter + more troubling is the prospect that the overall collapse in stock prices could permanently erode the base of <unk> support the otc market was struggling to rebuild in the wake of the october N crash + mr. <unk> of <unk> <unk> says some action from government policy makers would <unk> investor fears + it wo n't take much more to scare the hell out of retail investors he says + the sellers on friday came from all corners of the otc market big and small institutional investors as well as individual investors and market makers + but <unk> traders said the sell orders generally ranged from N shares to N shares compared with blocks of N shares or more two years ago + shearson 's mr. dapuzzo said retail investors nervously sold stock friday and never returned to <unk> + institutional investors which had been selling stock throughout last week to lock in <unk> gains made through the third quarter were <unk> + we had a good amount of selling from institutions but not as much panic mr. dapuzzo said + if they could n't sell some of them put the shares back on the shelf + in addition he said some bigger institutional investors placed bids to buy some otc stocks whose prices were beaten down + in addition mr. dapuzzo said computer-guided program selling of otc stocks in the russell index of N small stocks and the standard & poor 's 500-stock index sent <unk> waves through the market + nasdaq 's biggest stocks were <unk> + the nasdaq N index of the largest <unk> issues including the big otc technology issues tumbled N N or N to N + the nasdaq financial index of giant insurance and banking stocks dropped N N or N to N + the otc market has only a handful of <unk> stocks + but they fell sharply + mccaw cellular communications for instance has offered to buy lin broadcasting as well as metromedia 's new york city cellular telephone interests and in a separate transaction sell certain mccaw properties to contel cellular + mccaw lost N N or N N to N + lin broadcasting dropped N N or N N to N N + the turnover in both issues was roughly normal + on a day when negative <unk> news did n't sit well with investors commercial <unk> a maker of engineered metal parts said haas & partners advised it that it does n't plan to pursue its previously reported $ <unk> bid to buy the company + commercial <unk> plummeted N to N + the issues of companies with ties to the junk bond market also tumbled friday + on the otc market first executive a big buyer of the high-risk high-yield issues slid N to N N + among other otc issues intel dropped N N to N N <unk> transportation lost N N to N N the american depositary receipts of jaguar were off N to N N mci communications slipped N N to N N apple computer fell N to N N and <unk> dropped N N to N N + friday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate + N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds + N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate + N N + the charge on loans to depository institutions by the new york federal reserve bank + call money + N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. + N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper + high-grade unsecured notes sold through dealers by major corporations in multiples of $ N + N N N days N N N days N N N days + certificates of deposit + N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market + N N one month N N three months N N six months + bankers acceptances + N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars + N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor + N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates + canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills + results of the tuesday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million + N N N weeks N N N weeks + federal home loan mortgage corp freddie mac + posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional <unk> mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae + posted yields on N year mortgage commitments for delivery within N days priced at par + N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust + N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + pension funds insurers and other <unk> of the investing world said they began <unk> up stocks during friday 's market rout + and they plan to buy more today + <unk> or <unk> many giant institutional investors appear to be fighting the latest war by applying the lesson they learned in the october N crash buying at the bottom pays off + to be sure big investors might put away their <unk> in a hurry if stocks open sharply lower today + they could still panic and bail out of the market + but their N performance indicates that they wo n't abandon stocks unless conditions get far worse + last time we got <unk> for going out and buying stocks when the panic was the worst said john w. rogers president of chicago-based <unk> capital management inc. which manages $ N billion of stocks + mr. rogers spent half his cash on hand friday for our favorite stocks that have fallen apart + he expects to invest the rest if the market <unk> further + <unk> portfolio manager james craig was n't <unk> when friday 's rout <unk> $ N million from the value of the $ N million <unk> fund he oversees + i waited to make sure all the program trades had kicked through he said + then he jumped into the market + i spent $ N million in the last half-hour + other money managers also opened their <unk> + i was buying at the close friday and i 'll be buying again because i know we 're getting good value said frederick a. <unk> president of <unk> asset management inc. greenwich conn + there is no <unk> on the fundamental level for this crash + unlike mutual funds which can be forced to sell <unk> when investors rush to withdraw money big investors such as pension funds and insurance companies can decide to ride out market <unk> without <unk> stock + most often they do just that because stocks have proved to be the <unk> long-term investment attracting about $ N trillion from pension funds alone + if you bought after the crash you did very very well off the bottom said stephen b. <unk> chief investment officer of chicago-based kemper financial services inc + the $ N billion california public employees retirement system for one added $ N billion to its stock portfolio two years ago + the last crash taught institutional investors that they have to be long-term holders and that they ca n't react to short-term events good or bad said stephen l. <unk> senior vice president for the pension consultants <unk> associates in santa <unk> calif + those that pulled out of stocks <unk> it he said so i doubt you 'll see any significant changes in institutional portfolios as a result of friday 's decline + stocks as measured by the standard & poor 's 500-stock index have been <unk> performers this year rising N N before friday 's plunge excluding dividends + even friday 's slump leaves investors ahead more than N N well above the annual average for stocks over several decades + you could go down N points and still have a good year in the market said james d. <unk> president of new york-based <unk> capital corp + mr. <unk> however worries that the market could go down N or N points in the next few days + it can happen before you can turn around + he said he <unk> many parallels with N including the emphasis on takeover stocks and the <unk> of computerized program trading + the only thing you do n't have he said is the portfolio insurance phenomenon <unk> on the rest + most institutional investors have abandoned the portfolio insurance hedging technique which is widely thought to have <unk> the N crash + not really insurance this <unk> was designed to soften the blow of declining stock prices and generate an offsetting profit by selling waves of s&p futures contracts + in its <unk> test the $ N billion of portfolio insurance in effect in the N crash did n't work as stock buyers disappeared and stock and futures prices became <unk> + even without portfolio insurance market conditions were grim friday money managers said + neil <unk> whose new york-based <unk> capital partners had converted N N of its $ N million investment pool to cash in recent months said he was besieged by wall street firms friday asking him to take stock off their hands + we got calls from big block houses asking us if we want to make bids on anything said mr. <unk> who happy with his returns on investments <unk> up earlier declined the offers + mr. <unk> predicts stocks will appear to stabilize in the next few days before declining again <unk> more investors + i think it will be a <unk> <unk> rally he said + meanwhile friday brought a <unk> for money managers whose investment styles had put them at odds with the market rally + especially <unk> were the short sellers who have been <unk> by this year 's market climb + the <unk> sell borrowed shares hoping to profit by replacing them later at a lower price + the nation 's largest <unk> operation is <unk> brothers palo alto calif. which said last may that its short positions had shown losses of N N for the year up to that point + all that now has changed + we 're ahead for the year because of friday said the firm 's kurt <unk> + we 're not making a killing but we had a good day + food and drug administration spokesman jeff <unk> said the agency has turned over evidence in a criminal investigation concerning <unk> pharmaceuticals inc. to the u.s. attorney 's office in baltimore + neither <unk> nor any of the <unk> gardens n.y. company 's officials or employees have been charged with any crimes + <unk> won approval to market a version of a blood pressure medicine but acknowledged that it <unk> a <unk> <unk> plc product as its own in tests + mr. <unk> also said the fda has asked <unk> pharmaceutical co. to recall at the retail level its <unk> <unk> <unk> + but so far the company has n't <unk> with that request the spokesman said + <unk> the subject of a criminal investigation by the fda and the inspector general 's office of the health and human services department only agreed to recall two strengths of its version of <unk> as far down as direct customers mostly <unk> mr. <unk> said + <unk> of <unk> n.y. earlier began a voluntary recall of both its N <unk> and N <unk> versions of the drug + the fda has said it presented evidence it uncovered to the company indicating that <unk> <unk> the <unk> product for its own to gain government approval to sell generic versions of <unk> + <unk> has denied that it switched the <unk> product for its own in such testing + the west german retailer <unk> deutsche <unk> ag plans to challenge the <unk> of a widely employed anti-takeover defense of companies in the netherlands + the eventual court decision could become a landmark in dutch corporate law because the lawsuit <unk> plans to file would be the first to challenge the entire principle and practice of companies issuing voting preferred shares to <unk> trusts to <unk> voting power of common stockholders + up to now only specific aspects of these defenses have been challenged though unsuccessfully <unk> 's dutch lawyers noted + should the courts <unk> the <unk> of this type of defense <unk> will then ask the court to <unk> such a <unk> maneuver recently deployed by <unk> <unk> <unk> + <unk> says the <unk> international food retailer had n't reasonable grounds to issue preferred stock to a friendly trust and thus <unk> the worth and voting power of <unk> and other shareholders + speaking through its dutch lawyers <unk> also disclosed it holds a N N stake in <unk> + it was previously thought <unk> held a N N stake that was accumulated since july + a spokesman for <unk> said his company is confident of its own position and the <unk> of the <unk> issue + he termed <unk> 's legal actions as <unk> to international cooperation among european retailers + chase manhattan bank chairman <unk> butcher is a conservative banker and a loyal republican but on friday morning he had few kind words for president bush 's economic <unk> + there are some very significant issues out there such as the fiscal deficit the trade deficit our relations with japan that have to be the subject of major initiatives he said in an interview + i 'd like to see that initiative and i have n't + there is n't a big shot an agenda + a few hours later the stock market dropped N points + politicians tried to finger each other for the blame although many analysts doubt that washington was <unk> responsible for wall street 's woes + but mr. butcher 's comments make one thing clear some on wall street wonder if anyone is in charge of economic policy + consider this + by N p.m. tonight president bush must order $ N billion of automatic across-the-board cuts in government spending to comply with the gramm-rudman budget law + the cuts are necessary because congress and the administration have failed to reach agreement on a <unk> bill + we simply do n't have strong leadership to try to reduce the deficit and make tough choices house budget committee chairman leon <unk> d. calif said yesterday on nbc news 's meet the press + for the last two weeks the bush administration and the federal reserve have been engaged in a <unk> battle over international economic policy + the administration has been trying to push the dollar lower the fed has been <unk> + one of the things that continues to worry me is this monetary <unk> between the treasury department and the federal reserve board said lawrence <unk> a bear stearns & co. economist on abc 's this week + the administration has sent out confusing signals about its response to a recent spate of airline takeovers + last month transportation secretary sam skinner forced northwest airlines to reduce a stake held by <unk> royal dutch airlines + but he has since run into opposition from the treasury and the white house over that decision + and he has kept <unk> on how his decision might affect a bid for united airlines which includes a big stake by british airways plc + some analysts say uncertainty about washington 's anti-takeover policy was one reason that financing for the united airlines takeover fell through the event that triggered the market drop + in many ways the backdrop to friday 's stock decline is <unk> similar to that of october N 's <unk> crash + then as now the budget debate was behind schedule and automatic spending cuts were within days of taking hold + the treasury was locked in a battle over international economic policy although at that time it was with west german officials rather than the federal reserve + and concern about official actions aimed at takeovers then by the <unk> house ways and means committee rather than the transportation department were making markets nervous + the N crash brought the reagan administration and democratic lawmakers to the table for the first budget summit resulting in a two-year plan to reduce the deficit by more than $ N billion even though the deficit actually rose by nearly $ N billion during that period + but barring further drops in the market this week a similar outcome does n't seem likely this year + lawmakers and administration officials agree that friday 's drop by itself is n't enough to force both sides back to the table to try to reach a deficit-reduction agreement that would be more serious and more far-reaching than last spring 's <unk> plan which still is n't fully implemented + one of the biggest reasons that new talks are n't likely to come about is that as everyone learned in N the economy and the market can survive a one-day <unk> tumble + everybody thought we were looking at a <unk> of N that we were looking at a recession rep. <unk> said yesterday in an interview + that did not happen + they learned they could survive it without much problem + but administration officials privately agree with mr. <unk> who said a <unk> drop this week is going to force the president and congress to take a much harder look at fiscal policy + in that case there will be plenty of blame to go around + there is an underlying concern on the part of the american people and there should be that the administration has not gone far enough in cutting this deficit and that congress has been unwilling to cut what the administration asked us to cut said senate finance committee chairman lloyd <unk> d. texas + nevertheless it clearly will take more than friday 's 190-point decline to overcome the bitter feelings that have developed between lawmakers and white house budget director richard darman over the capital-gains fight + hill democrats are particularly angry over mr. bush 's claim that the capital-gains cut was part of april 's budget accord and his insistence on combining it with the deficit-reduction legislation + there is no prospect of any so-called grand compromise or deal next year because the administration simply did n't live up to this year 's deal senate majority leader george mitchell d. maine said yesterday on cbs news 's face the nation + during last week 's <unk> on the <unk> bill and the capital-gains issue there were signs that senate republicans and the administration were at odds + at the very moment that senate republicans were negotiating a deal to exclude capital gains from the deficit-reduction legislation white house spokesman marlin fitzwater told reporters that it was the president 's policy to include it + when an agreement was reached to strip capital gains from the legislation oregon sen. bob packwood the ranking gop member of the <unk> senate finance committee hailed it + asked if the administration agreed he <unk> replied the <unk> will have to speak for itself + friday 's market tumble could spur action on <unk> the house and senate versions of the deficit-reduction measure a process that is n't expected to begin until tomorrow at the <unk> + senate republicans expressed the hope that the house would follow the lead of the senate which on friday agreed to drop a variety of spending measures and tax breaks that would have increased the fiscal N deficit + the market needs a strong signal that we 're serious about deficit reduction and the best way to do that is for the house of representatives to strip their bill of similar provisions sen. warren <unk> r. <unk> said yesterday + the white house office of management and budget whose calculations determine whether the gramm-rudman targets are met estimated that the house-passed deficit-reduction measure would cut the fiscal N <unk> by $ N billion almost half of the congressional budget office 's estimate of $ N billion + rep. <unk> said that <unk> 's figure would still be enough to avoid permanent across-the-board cuts but added we 're getting very close to the margins here + no one in washington was willing to take the blame for <unk> friday 's drop in the stock market + but some players were quick to seize the moment + before the sun had set on friday richard <unk> the <unk> chief economist of the u.s. chamber of commerce issued a statement <unk> the drop in stock prices to the senate decision to postpone action on capital gains + investors who had been holding assets in anticipation of a more favorable time to sell were spooked he said + there have been many <unk> reasons advanced to support a capital-gains tax cut sen. mitchell said during his television appearance but i suggest that is perhaps more than any of the others + the following u.s. treasury corporate and municipal offerings are tentatively scheduled for sale this week according to dow jones capital markets report + $ N billion of three-month and six-month bills + two-year notes refinancing about $ N billion in maturing debt + $ N billion of 52-week bills + connecticut light & power co. + three million shares of $ N preferred via competitive bidding + <unk> crude carriers ltd. + four million common shares via salomon brothers inc + baldwin technology co. + N million class a shares via smith barney harris upham & co + blockbuster entertainment corp. + $ N million face amount liquid yield option notes via merrill lynch capital markets + chase manhattan corp. + N million common shares via goldman sachs & co + <unk> corp. + $ N million convertible debentures via merrill lynch + <unk> industries + N million common shares via merrill lynch + eastern utilities associates + N million common shares via painewebber inc + employee benefit plans inc. + two million common shares via dean witter capital markets + <unk> corp. + N common shares via goldman sachs + <unk> inc. + N million common shares via montgomery securities + oregon + $ N million of general obligation veterans ' tax notes series N via competitive bid + washington d.c. + $ N million of N general obligation tax revenue notes series <unk> via competitive bid + virginia public school authority + $ N of school financing bonds N series b N resolution via competitive bid + austin texas + $ N of various bonds including $ N million hotel <unk> tax revenue bonds series <unk> and $ N million convention center revenue bonds series <unk> via a morgan stanley & co. group + california health facilities financing authority + $ N million of kaiser <unk> revenue bonds via a painewebber group + connecticut + $ N million of general obligation capital appreciation bonds college savings plan N series b via a prudential-bache capital funding group + pennsylvania higher education facilities authority + $ N million of revenue bonds for <unk> university series N via a merrill lynch group + tennessee valley authority + three billion of power bonds via first boston corp + university of medicine and <unk> of new jersey + $ N million of series c bonds via a prudential-bache group + west virginia <unk> economic development and tourism authority + $ N million of parkway revenue bonds series N via a painewebber group + san antonio texas + $ N million of gas and electric revenue refunding bonds via a first boston group + south <unk> health & education facility authority + $ N million of rapid city regional hospital bonds via a <unk> <unk> <unk> & <unk> inc. group + small investors matched their big institutional <unk> in anxiety over the weekend but most seemed to be taking a <unk> approach and said they were resigned to riding out the latest storm in the stock market + i 'm not losing faith in the market said boston lawyer christopher sullivan as he watched the market plunge on a big screen in front of a brokerage firm + but he 's not so sure about everyone else + i think on monday the small investors are going to panic and sell predicted mr. sullivan whose investments include amr corp. 's american airlines unit and several mutual funds + and i think institutions are going to come in and buy + i 'm going to hold on + if i sell now i 'll take a big loss + some <unk> an optimism that had been <unk> when they did n't <unk> the market in N + oh i bet it 'll be up N points on monday said <unk> <unk> a <unk> retired <unk> in lexington <unk> + mrs. <unk> said her <unk> investment club 's portfolio lost about one-third of its value following the black monday crash but no one got discouraged and we gained that back and more + at the annual congress of the national association of investors corp. at the <unk> <unk> hotel in minneapolis the scene was calm + some N investors representing investor clubs from around the u.s. were attending when the market started to slide friday + but robert <unk> an official of the association said no special <unk> or emergency meetings of the investors ' clubs are planned + in fact some of the association 's members long-term <unk> investors welcomed the drop in prices + we hope to take advantage of it said john <unk> a member of a los angeles investors ' club + he has four stocks in mind to buy if the prices drop to the level he wants + not everyone is reacting so <unk> however and many wonder about the long-term implications of what is widely viewed as the cause of friday 's slide reluctance by banks to provide financing for a buy-out of ual corp. parent of united airlines + marc <unk> a tampa fla. investment banker said the market drop is one of a tremendous number of signs that the leveraged <unk> era is ending + there 's no question that there 's a general <unk> for leverage among lenders + mr. <unk> believes however that the market could be stabilized if california investor marvin davis steps back in to the united bidding with an offer of $ N a share + <unk> albert a <unk> dallas law student says she 's generally <unk> about the stock market and the takeover activity that seems to fuel it + i have this feeling that it 's built on sand she says that the market rises but there 's no foundation to it + she and her husband pulled most of their investments out of the market after the N crash although she still owns some texaco stock + partly because of concern about the economy and partly because she recently quit her job as a legal assistant to go to school i think at this point we want to be a lot more liquid + others wonder how many more of these shocks the small investor can stand + we all assumed october <unk> was a one-time shot said san francisco attorney david greenberg + we told the little guy it could only happen once in a lifetime come on back + now it 's happening again + mr. greenberg got out just before the N crash and to his regret never went back even as the market soared + this time he 's ready to buy in when the panic wears off + still he adds we ca n't have this kind of thing happen very often + when the little guy gets frightened the big guys hurt badly + merrill lynch ca n't survive without the little guy + small investors have <unk> back into the market following black monday but mostly through mutual funds + discount brokerage customers have been in the market somewhat but not whole <unk> like they were two years ago says leslie quick jr. chairman of the quick & <unk> discount brokerage firm + hugo <unk> senior vice president at charles <unk> corp. says schwab customers have been neutral to cautious recently about stocks + individual investors are still angry about program trading mr. <unk> says + <unk> <unk> a cornell university finance professor says government regulators will have to more closely control program trading to win back the confidence of the small investor + but it 's not only the stock market that has some small investors worried + alan <unk> general sales manager of a chrysler dealership in houston said he and his mother have some joint stock investments but the overall economy is his chief worry + these high <unk> took a big <unk> today he said in his showroom which is within a few miles of the <unk> dollar homes of some of houston 's <unk> citizens + and i can tell you that a high roller is n't going to come in tomorrow and buy a chrysler <unk> by <unk> + and finally there were the <unk> + i got out in N + everything said <unk> <unk> an <unk> ohio plumbing contractor who was visiting chicago and stopped by fidelity investments ' <unk> street office + i just stopped by to see how much i would have lost + would mr. <unk> ever get back in + are you <unk> + when it comes to money once <unk> N times shy + the crowded field for <unk> computers is about to become a lot more crowded + compaq computer corp. 's long-awaited entry today into the notebook field is expected to put immediate heat on others in the market especially zenith electronics corp. the current market leader and on a <unk> of promising <unk> + compaq 's series of <unk> <unk> a trend toward <unk> in the personal computer market + one manufacturer already has produced a <unk> computer called a <unk> and two others have introduced even smaller <unk> + but those machines are still considered <unk> with <unk> only a <unk> could love and screens to match + compaq 's <unk> by contrast may be the first in their weight class not to <unk> on features found in much bigger machines + analysts say they 're faster and carry more memory than anything else of their size on the market and they 're priced aggressively at $ N to $ N + all of this comes in a machine that <unk> only six pounds and fits <unk> into most <unk> + in recent months compaq 's competition including zenith toshiba corp. tandy corp. and nec corp. all have introduced <unk> that weigh approximately the same and that are called <unk> perhaps <unk> + one analyst noting that most such machines are about two inches thick takes exception to the name + this is n't quite a notebook i call it a <unk> he says + that ca n't be said of the $ N <unk> computer introduced a few weeks ago by grid systems corp. a unit of tandy + instead of a <unk> it features a writing surface an electronic <unk> and the ability to read block printing + at N N pounds it may be too <unk> named but it nevertheless opens up the kind of marketing possibilities that make analysts <unk> + <unk> are n't far behind + <unk> corp. 's portfolio introduced in europe two months ago and in the u.s. in early september <unk> less than a pound costs a mere $ N and runs on three <unk> <unk> yet has the power to run some <unk> and word processing programs + some critics however say its ability to run <unk> programs is restricted by a limited memory + <unk> computer corp. meanwhile has introduced a much more sophisticated <unk> that can run lotus N and other sophisticated software programs but costs five times as much + at stake is what mike <unk> compaq 's president of north america operations calls the <unk> <unk> of the computer industry the search for a real computer in a package so small you can take it everywhere + the market is so new nobody knows yet how big it can be + i 've had a lot of people trying to sell me services to find out how big it is says tom <unk> director of marketing for grid + whether it 's $ N billion or $ N billion it does n't matter + it 's huge + consider the growth of <unk> which now <unk> N N of all personal computer sales + <unk> generally anything under N pounds have become the fastest-growing personal computer segment with sales doubling this year + responding to that demand however has led to a variety of <unk> + making computers smaller often means <unk> memory + it also has <unk> use of the faster more powerful microprocessors found in increasing numbers of desktop machines + size and weight considerations also have limited screen displays + the competitive <unk> can get pretty <unk> at times + a <unk> spokesman for example <unk> the <unk> portfolio because it requires three <unk> while the <unk> needs only two + both <unk> are dismissed by notebook makers who argue that they 're too small a problem <unk> also encountered in focus groups admits <unk> <unk> director of marketing + <unk> trying to avoid the <unk> label responded with the tag line the <unk> pc a very big computer + despite the <unk> few question the <unk> of the move to small machines that do n't make <unk> + toward that end experts say the real battle will take place between <unk> players like toshiba zenith and now compaq + compaq 's new machines are considered a direct threat to start-up firms like <unk> inc. which introduced in june a computer that like compaq 's uses an intel N microprocessor and has a hard disk drive + but the <unk> product is twice as heavy and costs more than compaq 's + compaq 's announcement also <unk> trouble for zenith which last year had N N of the u.s. laptop market but recently agreed to sell its computer business to cie. des machines bull the french government-owned computer maker + zenith holders will vote in december on the proposed $ N million sale a price that could slip because it is pegged to zenith 's share and sales + compaq is already taking aim at zenith 's market share + rod <unk> compaq 's president and chief executive officer notes <unk> that zenith 's $ N <unk> uses an <unk> <unk> <unk> disk <unk> compaq 's new machines use the more common N <unk> disk + john p. frank president of zenith data systems simply <unk> off such criticism noting that N <unk> <unk> were also <unk> when they first replaced <unk> disks + we do n't look at it as not being a standard we look at it as a new standard he argues + analysts do n't see it that way + i ca n't imagine that you 'll talk to anyone who wo n't tell you this is <unk> for compaq and a <unk> for everyone else says gene <unk> president of professional marketing management inc + adds bill <unk> senior industry analyst for <unk> a high-technology market research firm we basically think that these are very hot products + the problem compaq is going to have is that they wo n't be able to make enough of them + compaq 's machines include the N <unk> <unk> disk drive a <unk> screen that is only <unk> thick and an internal expansion <unk> for a <unk> in other words almost all the <unk> of a typical office machine + others undoubtedly will follow but most analysts believe compaq has at least a six-month lead on the competition + toshiba 's line of <unk> for example features the <unk> which is in the same weight class but is much slower and has less memory and the <unk> which also uses a N microprocessor but which <unk> almost twice as much and is three times the size + a third model marketed in japan may hit the u.s. by the end of the first quarter of N but by then analysts say compaq will have established itself as one of three major players + what about big blue + international business machines corp. analysts say has been burned twice in trying to enter the laptop market and shows no signs of trying to get into <unk> anytime soon + honeywell inc. and international business machines corp. received air force contracts to develop integrated circuits for use in space + honeywell 's contract totaled $ N million and ibm 's $ N million + boeing co. received a $ N million air force contract for developing cable systems for the <unk> missile + general dynamics corp. received a $ N million air force contract for <unk> training sets + grumman corp. received an $ N million navy contract to upgrade aircraft electronics + <unk> corp. received an $ N million army contract for helicopter engines + sharp increases in the price of fresh produce caused spain 's september consumer price index to shoot up N N from the previous month pushing the annual rate of inflation to N N the national institute of statistics said friday + the monthly increase is the highest recorded in the past four years + the index which registered N at the end of september has a base of N set in N and is n't seasonally adjusted + prices have risen N N in the first nine months of the year <unk> both the initial N N inflation goal set by the government of socialist prime minister <unk> gonzalez and the second revised goal of N N + japan 's wholesale prices in september rose N N from a year earlier and were up N N from the previous month the bank of japan announced friday + the wholesale price index stood at N compared with a N base of N + plunge + what plunge + <unk> new york stock exchange issues hit 52-week highs during friday 's trading despite the dow jones industrial average 's 190.58-point plunge + stocks of utilities held up relatively better than other market sectors during the sell-off + and among the issues hitting new highs were detroit edison co. and <unk> <unk> power corp + other major issues hitting highs included american telephone & telegraph co. westinghouse electric corp. exxon corp. and cigna corp. the big insurer + of course many more issues N hit new lows + these included international business machines corp. which during friday 's session traded below $ N a share for the first time since june N + ibm closed at $ N down $ N + other new lows included <unk> international corp. union carbide corp. and bethlehem steel corp. all of which are included in the industrial average + meanwhile two initial public offerings <unk> the <unk> market in their <unk> day of national over-the-counter trading friday + shares of rally 's inc. an operator of fast-food restaurants closed at $ N each up from its $ N offering price and shares of employee benefit plans inc. a health-care consultant closed at $ N up from its $ N offering price + ford motor co. said it acquired N N of the shares in jaguar plc + jaguar the london stock exchange and the u.s. securities and exchange commission are being notified of the transactions the company said + the u.s. federal trade commission advised ford last week that it would n't raise any <unk> to the acquisition of as much as N N of jaguar shares + the no. N auto maker disclosed last month that it wants to buy as much as N N of the british luxury-car maker the maximum allowed under current united kingdom government restrictions + general motors corp. said it had discussed the possibility of a joint venture with jaguar before ford began buying shares + gm said it still is talking with jaguar about acquiring a minority interest + investors who bought stock with borrowed money that is on margin may be more worried than most following friday 's market drop + that 's because their brokers can require them to sell some shares or put up more cash to enhance the collateral backing their loans + in october N these margin calls were thought to have contributed to the downward <unk> of the stock market + typically a margin call occurs when the price of a stock falls below N N of its original value + if the investor does n't put up the extra cash to satisfy the call the brokerage firm may begin <unk> the securities + but some big brokerage firms said they do n't expect major problems as a result of margin calls + margin calls since friday have been higher than usual but reasonable a spokesman for shearson lehman hutton inc. said + merrill lynch & co. officials do n't expect margin calls to be as big a factor as in N because fewer individual investors are buying stock on margin a spokesman said + hugo <unk> senior vice president at charles schwab corp. the san <unk> discount brokerage firm said he did n't expect any immediate problems with margin calls for schwab customers + he said schwab had increased margin requirements so customers have more of a cushion + he added we learned a lesson in N about volatility + <unk> inc. following rival hertz corp. 's lead said it is backing out of <unk> programs with three airlines + the garden city n.y. <unk> company said it wo n't renew contracts with nwa inc. 's northwest airlines unit pan am corp. 's pan american world airways unit and <unk> airlines at the end of this year + but it remains involved in programs with amr corp. 's american airlines unit and delta air lines + industry estimates put <unk> 's annual cost of all five programs at between $ N million and $ N million + a spokesman for <unk> would n't specify the costs but said the three airlines being dropped account for far less than half of the total + budget rent a car corp. of chicago and national car rental systems inc. of minneapolis both said they had no plans to follow suit + in fact budget indicated it saw some benefit to staying involved in these programs in which <unk> earn <unk> miles and <unk> can get <unk> discounts + i can not see how this news by hertz and <unk> can not benefit budget 's programs said bob wilson budget 's vice president marketing planning + northwest and <unk> are two of the five airlines with which budget has agreements + national also <unk> in the northwest <unk> program along with four other airlines including delta and usair group inc. 's usair unit + a month ago hertz of park <unk> n.j. said that it would drop its marketing agreements at year end with delta america west and texas air corp. 's continental airlines and eastern airlines and that <unk> with american airlines ual inc 's united airlines and usair also would be ended sometime after dec. N + at the time hertz said its annual fees to those airlines amounted to $ N million and that the value of redeemed <unk> topped $ N million + analysts and competitors however doubt the numbers were that high + budget said its <unk> costs are substantially below <unk> 's level + robert d. <unk> <unk> vice president of marketing said the proliferation and costs attached to <unk> programs have significantly diminished their value + this year has been difficult for both hertz and <unk> said charles <unk> <unk> industry analyst at alex brown & sons + they 've been looking to get their costs down and this is a fairly <unk> way to do it he said + cbs inc. is cutting the pat <unk> show down to one hour from its current N minutes + cbs insisted the move was n't a setback for the program which is the network 's first entry into the <unk> talk show format since N + i have every intention of making this the best possible show and having it run one hour is the best way to it said rod <unk> who was named vice president of late night entertainment in august + this will raise the energy level of the show + cbs will continue to program <unk> shows to follow the <unk> hour + but cbs news will extend its <unk> <unk> by N minutes and begin at N a.m + the show despite a promising start has slipped badly in the weekly ratings as compiled by a.c. nielsen co. finishing far below tonight on nbc a unit of general electric co. and <unk> on <unk> a unit of capital cities\/abc inc + further <unk> the <unk> audience is the addition of the <unk> hall show syndicated by paramount communications inc + tandem computers inc. preparing to fight with international business machines corp. for a piece of the mainframe business said it expects to post higher revenue and earnings for its fiscal fourth quarter ended sept. N + tandem said it expects to report revenue of about $ N million and earnings of N cents to N cents a share + the results which are in line with analysts ' estimates reflect a continued improvement in our u.s. business said james <unk> tandem 's chief executive officer + in the year-earlier period tandem reported net income of $ N million or N cents a share on revenue of $ N million + tandem expects to report the full results for the quarter next week + analysts have predicted that the cupertino calif. company will report revenue of $ N million to $ N million and earnings of N cents to N cents a share + commenting on the results for the quarter mr. <unk> said the strength of the company 's domestic business came as a surprise to him noting that sales in every region of the u.s. exceeded our plan + the company 's u.s. performance was helped by a record quarter for new customers he said + tandem makes <unk> computers machines with <unk> backup systems that run stock exchanges networks of automatic <unk> and other complex computer systems + tomorrow the company is scheduled to announce its most powerful computer ever which for the first time will bring it into direct competition with makers of mainframe computers + tandem 's new high-end computer is called <unk> + prices for the machine which can come in various <unk> are $ N million to $ N million + analysts expect the new computer to <unk> a hefty <unk> of business away from ibm the longtime leader in mainframes + we believe they could <unk> perhaps two to three billion dollars from ibm over the next few years said george weiss an analyst at the gartner group + that will spur tandem 's growth + i 'd be disappointed if the company grew by less than N N next year said john <unk> an analyst at goldman sachs & co + ibm is expected to respond to tandem 's <unk> by discounting its own mainframes which analysts say are roughly three times the price of a comparable system from tandem + obviously ibm can give bigger discounts to users immediately said mr. weiss + but mr. <unk> questions whether that will be enough to stop tandem 's first mainframe from taking on some of the functions that large organizations previously sought from big blue 's machines + the answer is n't price reductions but new systems he said + nevertheless tandem faces a variety of challenges the biggest being that customers generally view the company 's computers as <unk> to ibm 's mainframes + even mr. <unk> is reluctant to abandon this notion insisting that tandem 's new machines are n't <unk> for ibm 's mainframes + we 're after a little bigger niche he said + do n't jump yet + the stock market 's <unk> may turn out to be good news for the economy + in one wild hour of trading the market managed to accomplish what the bush administration has been trying to do unsuccessfully for weeks + it is forcing the federal reserve to ease its grip on credit and it took the wind out of a previously <unk> dollar + the resulting decline in interest rates and the value of the dollar could <unk> american business indeed the entire economy + this may sound <unk> optimistic + after all until a few years ago the stock market was viewed as a barometer of the national economy + when it went down by all tradition the economy followed + that has changed partly because the two years following the worst stock-market plunge in history have been reasonably comfortable + the N crash was a false alarm however you view it says university of chicago economist victor <unk> + the market seems increasingly <unk> from the rest of the nation + its <unk> ca n't be <unk> to fundamental business conditions nor do they appear to <unk> major shifts in the economy + the market today has a life of its own john <unk> chairman of international business machines corp. said saturday + there 's nothing rational about this kind of action + of course the health of the economy will be threatened if the market continues to dive this week + sharply falling stock prices do reduce consumer wealth damage business confidence and discourage the foreign investors upon whom the u.s. now relies for financial <unk> + the financial-services industry was battered by the N crash + what 's more although the stock market is far less <unk> today than two years ago the u.s. economy is weaker + growth is slower + profits are softer + debt burdens are heavier + but if the stock market does n't continue to plummet the beneficial effects of lower interest rates and a lower dollar may well dominate + the fed which until friday had been <unk> moves to ease credit is now poised to pour money into the economy if needed to <unk> the markets + fed officials may protest that this does n't necessarily mean a fundamental change in their interest-rate policies + but the experience of the N crash suggests the fed is likely to bring down short-term interest rates in its effort to calm markets + anticipating the fed 's move money traders lowered a key interest rate known as the federal funds rate to N N late friday down from N N the day before + tiny movements in the rate which is what banks charge each other for overnight loans are usually among the few visible tracks that the fed leaves on the monetary markets + the dollar also began to decline friday as the stock market 's plunge caused some investors to <unk> their desire to invest in the u.s. + treasury officials have been arguing for months that the dollar 's strength was out of <unk> with economic fundamentals threatening to <unk> the export boom that has sustained manufacturers for several years + the market drop has now apparently convinced foreign investors that the treasury was right about the <unk> dollar + a modest drop in the dollar only a modest one mind you would be welcomed by the u.s. + that was n't the case in N when the dollar was so weak that some economists and government officials seriously worried that it might collapse producing panic among foreign investors and <unk> the flow of foreign capital to the u.s. + another big difference between N and N is n't so <unk> + in the third quarter of N the economy <unk> at an inflation-adjusted annual rate of N N + the consensus among economists is that it grew a much more sluggish N N in the third quarter of N which ended two weeks ago + the plunge in stock prices is happening at a time when the economy has already slowed down says economist lawrence <unk> of <unk> group a <unk> <unk> pa. forecasting company + a lot of <unk> demand is gone + consumer spending did drop in the months following black monday N but only slightly and for a short period of time recalls mr. <unk> a longtime student of business cycles + that was offset by strength elsewhere + the effects were much less severe and less prolonged than some had feared or expected + today he <unk> exports and business investment spending may be insufficient to pick up the slack if stock prices sink this week and if consumers <unk> in reaction + what 's more the corporate borrowing binge has n't <unk> in the past two years + we 've had two more years of significant accumulation of debt just at the time when earnings are being squeezed mr. <unk> notes + the more a company relies on borrowed money the greater its <unk> to an economic slowdown + a company with a strong balance sheet can withstand an unanticipated storm a highly leveraged company may end up in bankruptcy court + the fed of course knows that very well hence its <unk> to pump credit into the economy this morning + but in the process the fed risks <unk> inflation + even before friday 's events harvard university economist benjamin <unk> was arguing that the fed wo n't be able to live up to its tough words on eliminating inflation because of its responsibility to protect fragile financial markets banks and highly leveraged corporations + the biggest threat on the economic horizon right now is n't recession he reasons it 's an <unk> of <unk> inflation + in the end the N collapse suggested the economy does n't move in <unk> with stock prices + the economy does however depend on the confidence of businesses consumers and foreign investors + a panic on wall street does n't exactly <unk> confidence + surveys suggested that consumer confidence was high before friday + a 190-point drop is n't likely to make much of a <unk> <unk> that a few times over though and it will + if the reactions of executives gathered saturday at hot springs va. for the business council meetings are typical business leaders were n't overly rattled by friday 's decline + and if foreign investors become a <unk> more cautious well the dollar 's recent strength suggests that the u.s. can stand it + on the bottom line the most <unk> fact for the economic outlook is that we 've been through this before + two years ago about the only point of comparison was the N crash and the subsequent depression + the <unk> had a <unk> audience + the prosperity that followed black monday permits a more optimistic view today + at the very least the establishment here is taking comfort from the nation 's success in handling the last <unk> + as sen. lloyd <unk> d. texas observed yesterday the fed avoided a <unk> last time + they are more sophisticated this time + the chemical industry is expected to report that profits eroded in the third quarter because of <unk> prices in the commodity end of the business + producers of commodity chemicals the basic chemicals produced in huge volumes for other manufacturers have seen sharp inventory cutting by buyers + once the chief beneficiaries of the industry 's now <unk> boom these producers also will be reporting against exceptionally strong performances in the N third quarter + for some of these companies this will be the first quarter with year-to-year negative comparisons says leonard <unk> a chemical industry analyst at prudential <unk> research + this could be the first of five or six down quarters + perhaps most prominent dow chemical co. which as of midyear had racked up eight consecutive record quarters is expected to report that profit decreased in the latest quarter from a year earlier if only by a <unk> + though dow has aggressively diversified into specialty chemicals and pharmaceuticals the company still has a big stake in polyethylene which is used in packaging and <unk> + analysts ' third-quarter estimates for the midland mich. company are between $ N a share and $ N a share compared with $ N a year ago when profit was $ N million on sales of $ N billion + a dow spokeswoman declined to comment on the estimates + at the investment firm of smith barney harris upham & co. the <unk> segment is seen pulling down overall profit for N companies representative of the whole industry by N N to N N + you will find the commodities off more than the others and the diversified companies about even or slightly better says james wilbur a smith barney analyst + first boston corp. projects that N of the N companies it follows will report lower profit + most of the N have big <unk> operations + still some industry giants are expected to report continuing gains largely because so much of their business is outside commodity chemicals + du pont co. is thought to have had steady profit growth in white <unk> fibers and <unk> + moreover the wilmington del. company is helped when prices weaken on the commodity chemicals it buys for its own production needs such as <unk> + analysts are divided over whether du pont will report much of a gain in the latest quarter from its <unk> inc. oil company + the estimates for du pont range from $ N to $ N a share + in the N third quarter the company earned $ N million or $ N a share on sales of $ N billion + du pont declined to comment + monsanto co. too is expected to continue reporting higher profit even though its sales of crop chemicals were hurt in the latest quarter by drought in northern europe and the western u.s. + the st. <unk> company is expected to report again that losses in its <unk> searle & co. pharmaceutical business are narrowing + searle continued to operate in the red through the first half of the year but monsanto has said it expects searle to post a profit for all of N + most estimates for monsanto run between $ N and $ N a share + a year ago the company posted third-quarter profit of $ N million or $ N a share on sales of $ N billion + monsanto declined to comment + but the <unk> producers are caught on the downside of a pricing cycle + by some accounts on wall street and in the industry the inventory reductions are near an end which may <unk> firmer demand + but <unk> say growing production capacity could keep pressure on prices into the early 1990s + in the latest quarter at least profit is expected to fall sharply + for <unk> inc. how far down it is we do n't know says leslie <unk> at salomon brothers + the projections are in the neighborhood of N cents a share to N cents compared with a restated $ N a share a year earlier when profit was $ N million on sales of $ N million + <unk> faces lower prices for its mainstay product <unk> while it goes forward with a heavy capital investment program to bolster its raw material supply and develop new uses for <unk> whose markets include the packaging and automobile industries + the company based in wilmington del. is <unk> by montedison s.p a. milan which has an offer outstanding for the <unk> shares it does n't already own + at quantum chemical corp. new york the trouble is lower prices for polyethylene higher debt costs and the <unk> of an important plant due to an explosion + some analysts hedge their estimates for quantum because it is n't known when the company will book certain one-time charges + but the estimates range from break-even to N cents a share + in the N third quarter quantum earned $ N million or $ N a share on sales of $ N million + another big polyethylene producer union carbide corp. is expected to post profit of between $ N a share and $ N compared with $ N a share a year earlier when the company earned $ N million on sales of $ N billion + <unk> quantum and union carbide all declined to comment + the following were among friday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + dow chemical co. + $ N million of N N senior notes due oct. N N priced at par + the issue which is <unk> back to the company at par on oct. N N was priced at a spread of N basis points above the treasury 's 10-year note + rated single-a-1 by moody 's investors service inc. and single-a by standard & poor 's corp. the <unk> issue will be sold through underwriters led by merrill lynch capital markets + <unk> capital corp. + $ N million of N N debentures due oct. N N priced at N to yield N N + the <unk> issue which can be put back to the company in N was priced at N basis points above the treasury 's 10-year note + rated <unk> by moody 's and <unk> by s&p the issue will be sold through underwriters led by morgan stanley & co + federal home loan mortgage corp. + $ N million of remic mortgage securities offered in N classes by prudential-bache securities inc + the offering series N backed by freddie mac N N N securities with a weighted average remaining term to maturity of N years was priced before the market 's afternoon surge + among classes for which details were available yields ranged from N N or N basis points over two-year treasury securities to N N or N basis points over 10-year treasurys + federal home loan mortgage corp. + $ N million of remic mortgage securities offered by citicorp securities markets inc + the offering series N is backed by freddie mac N N N securities + pricing details were n't immediately available + federal home loan mortgage corp. + $ N million of stripped mortgage securities underwritten by <unk> securities corp + the agency 's first strips issue collateralized by freddie mac N N securities <unk> into a single security called a giant will be divided into <unk> and <unk> securities + the collateral is being sold by a thrift institution + the <unk> securities will be <unk> by <unk> securities into a freddie mac remic series N that will have six classes + the <unk> securities will be sold separately by <unk> securities + the <unk> securities pay the principal from the underlying freddie mac N N securities while the <unk> securities pay only interest + freddie mac said the <unk> securities were priced at N N to yield N N assuming an average life of eight years and a prepayment of N N of the <unk> model + the <unk> securities were priced at N N to yield N N + there were no major <unk> or foreign bond offerings in europe friday + the economy 's <unk> will be taken from several <unk> points this week with <unk> on trade output housing and inflation + the most troublesome report may be the august merchandise trade deficit due out tomorrow + the trade gap is expected to widen to about $ N billion from july 's $ N billion according to a survey by <unk> international a unit of mcgraw-hill inc. new york + thursday 's report on the september consumer price index is expected to rise although not as sharply as the N N gain reported friday in the producer price index + that gain was being cited as a reason the stock market was down early in friday 's session before it got started on its reckless 190-point plunge + economists are divided as to how much manufacturing strength they expect to see in september reports on industrial production and capacity utilization also due tomorrow + meanwhile september housing starts due wednesday are thought to have inched upward + there 's a possibility of a surprise in the trade report said michael <unk> director of research at <unk> + a widening of the deficit if it were combined with a <unk> strong dollar would <unk> trade problems but the dollar weakened friday as stocks plummeted + in any event mr. <unk> and many others say that the easy gains in narrowing the trade gap have already been made + trade is definitely going to be more politically sensitive over the next six or seven months as improvement begins to slow he said + exports are thought to have risen strongly in august but probably not enough to offset the jump in imports economists said + views on manufacturing strength are split between economists who read september 's low level of factory job growth as a sign of a slowdown and those who use the somewhat more <unk> total employment figures in their calculations + the wide range of estimates for the industrial output number <unk> the differences the forecasts run from a drop of N N to an increase of N N according to <unk> + a rebound in energy prices which helped push up the producer price index is expected to do the same in the consumer price report + the consensus view expects a N N increase in the september <unk> after a flat reading in august + robert h. <unk> an economist for lloyd 's bank in new york is among those expecting a more moderate gain in the <unk> than in prices at the producer level + auto prices had a big effect in the <unk> and at the <unk> level they wo n't he said + food prices are expected to be unchanged but energy costs jumped as much as N N said gary <unk> economist at <unk> financial group + he also says he thinks core inflation which <unk> the volatile food and energy prices was strong last month + he expects a gain of as much as N N in core inflation after a summer of far smaller increases + housing starts are expected to <unk> a bit from august 's annual pace of N units + economists say an august rebound in permits for <unk> units signaled an increase in september starts though activity remains fairly modest by historical standards + <unk> street + if the <unk> <unk> law 's fair why should we not then <unk> the <unk> to require that all employees give similar notice before they quit + <unk> s. <unk> + <unk> comment + when research projects are curtailed due to government funding cuts are we caught with our grants down + <unk> <unk> + assuming the stock market does n't crash again and completely <unk> <unk> and trading rooms american television audiences in a few months may be seeing britain 's concept of both + capital city is a weekly series that <unk> here three weeks ago amid unprecedented <unk> by its producer <unk> television + the early episodes make you long for a <unk> of the crash of N + let 's make that N just to be sure + according to the program 's publicity prospectus capital city set at <unk> <unk> a <unk> <unk> securities firm with # N million capital follows the fortunes of a <unk> team of young <unk> dealers hired for their particular <unk> of style <unk> and energy + but with all the money and <unk> of high finance come the <unk> pressures to do well pressure to pull off another million before lunch pressure to anticipate the market by a fraction of a second + you need n't be a <unk> securities lawyer to realize the prospectus is guilty of less than full disclosure + the <unk> produced series has been criticized by london 's financial <unk> as inaccurate in detail but its major weakness is its <unk> <unk> of the characters ' professional and private lives + turned loose in <unk> <unk> 's trading room the <unk> dealers do little right + judging by the money lost and mistakes made in the early episodes <unk> <unk> 's capital should be just about exhausted by the final 13th week + in the opening episode we learn that <unk> a junior bond trader has indeed pulled off another million before lunch + trouble is she has lost it just as quickly + rather than keep the loss a secret from the outside world <unk> <unk> about it to a <unk> man while ordering lunch over the phone + little chance that <unk> <unk> is going to recoup today + traders spend the morning <unk> selling bonds in the belief that the u.s. monthly trade figures will look <unk> + <unk> <unk> columbia + the trade figures turn out well and all those recently <unk> bonds <unk> in price + so much for anticipating the market by a fraction of a second + and a large <unk> of the first episode is devoted to efforts to get rid of some nearly <unk> japanese bonds since when is anything japanese nearly <unk> <unk> + surprisingly <unk> <unk> <unk> the week only to have a senior executive <unk> <unk> his way into becoming the target of a criminal insider trading investigation + instead of closing ranks to protect the firm 's reputation the executive 's internal rivals led by a <unk> american demand his resignation + the plot is <unk> when the firm 's major <unk> <unk> <unk> on the other side of the globe <unk> home to support the executive + but the investigation continues + if you can <unk> the <unk> that the rewards for such <unk> are <unk> salaries you still are left <unk> because few of the <unk> consume very <unk> + in fact few consume much of anything + two share a house almost <unk> of furniture + <unk> lives in a hotel room and although she drives a <unk> <unk> she has n't time to clean or repair it the <unk> vehicle can be started only with a huge pair of <unk> because the <unk> key has broken off in the lock + and it takes <unk> the <unk> <unk> ' man of the cast until the third episode to get past first base with any of his <unk> + perhaps the explanation for these <unk> is that <unk> britain is n't ready to come to terms with the wealth created by the <unk> <unk> regime + after all this is n't old money but new money and in many cases young money + this attitude is clearly illustrated in the treatment of max the trading room 's most flamboyant character + <unk> enough he lives in a <unk> <unk> converted church wears designer clothes and drives an <unk> car + but apparently to make him <unk> even <unk> to the <unk> the script <unk> <unk> max into an <unk> <unk> master of N chinese <unk> + he takes his wash to the <unk> where he meets a <unk> french girl who <unk> him into providing a home for her pet <unk> and then promptly <unk> his car and <unk> it in <unk> + in producing and promoting capital city <unk> has spent about as much as <unk> <unk> loses on a good day + the production costs are a not <unk> # N million $ N million and would have been much higher had not the cost of the trading floor set been absorbed in the budget of dealers an earlier <unk> movie + another half million <unk> went for a <unk> of <unk> advertisements in six major british newspapers and for huge <unk> in the london subway + these expenses create a special incentive for capital city 's producers to <unk> it or a <unk> version of it in america + <unk> 's u.s. marketing agent donald <unk> is preparing to do just that + he is <unk> hopeful citing three u.s. comedy series three 's company too close for comfort and check it out that had british <unk> + perhaps without <unk> it mr. <unk> simultaneously has put his finger on the problem and an ideal solution capital city should have been a comedy a worthy <unk> to the <unk> british carry on movies of the 1960s + the seeds already are in the script + the first episode concluded with a <unk> <unk> scene in which the <unk> crew <unk> a baby the casualty of a broken marriage at the firm + and many in the young cast bear striking <unk> to american tv and movie <unk> known for light roles + <unk> <unk> looks like a young <unk> <unk> <unk> william armstrong who plays max could pass for <unk> <unk> and douglas <unk> <unk> for james <unk> <unk> <unk> is a <unk> <unk> <unk> and <unk> <unk> could easily double for <unk> hall the <unk> <unk> of the <unk> boys <unk> + so ok kids everybody on stage for carry on trading the cast is <unk> searching the office for <unk> japanese bonds that suddenly have soared in value because dai-ichi kangyo bank has just bought the white house + the pressure is too much for <unk> <unk> who <unk> a security guard + he <unk> into a desktop computer terminal which <unk> covering <unk> hall 's face with <unk> + and all the while the bonds are in the baby 's diaper + it should run forever + mr. <unk> is senior <unk> in the journal 's london bureau + <unk> assurances of france gave details of its financing plans for its proposed $ N billion acquisition of farmers group inc. in amended filings with insurance regulators in the nine u.s. states where farmers operates + the proposed acquisition is part of sir james goldsmith 's unfriendly takeover attempt for b.a.t industries plc the british tobacco retailing paper and financial services concern that is parent of los angeles-based farmers + in an attempt to <unk> u.s. regulators ' concern over a goldsmith acquisition of farmers sir james in august agreed to sell farmers to axa if he is successful in acquiring b.a.t + as part of the agreement axa agreed to invest $ N billion in <unk> investments ltd. sir james 's acquisition vehicle + of the total $ N billion to be paid to <unk> by axa about $ N billion will come from available resources of axa 's parent <unk> group $ N billion will be in the form of notes issued by axa and the remaining $ N billion will be in long-term bank loans + in an interview thursday <unk> bebear chairman and chief executive officer of axa said his group has already obtained assurances from a group of banks led by cie financiere de paribas that they can provide the loan portion of the financing + the other banking companies in the group are credit lyonnais societe generale bankamerica corp. and citicorp he said + mr. bebear said <unk> group has more than $ N billion of <unk> assets that we can and will sell to help pay off debt from the acquisition + he said the assets to be sold would be <unk> assets including a beer company and a real estate firm and would n't include any pieces of farmers + we wo n't put any burden on farmers he said + the amended filings also point out that under a new agreement <unk> has an <unk> obligation to sell farmers to axa upon an acquisition of b.a.t + we hope that with what we did the regulators will not need to evaluate <unk> and they can directly look at the agreement with us because <unk> wo n't be an owner of farmers at anytime mr. bebear said + any change of control in farmers needs approval of the insurance commissioners in the nine states where farmers and its related companies are incorporated + the amended filings were required because of the new agreement between axa and <unk> and to reflect the extension that sir james received last month under british takeover rules to complete his proposed acquisition + <unk> dropped its initial # N billion $ N billion takeover bid after it received the extension but said it would launch a new bid if and when the <unk> sale of farmers to axa receives regulatory approval + a spokesman for b.a.t said of the amended filings that it would appear that nothing <unk> has changed + the new financing structure is still a <unk> leveraged one and axa still plans to take out N N of farmers ' earnings as dividends to service their debt + that dividend is almost double the N N currently taken out of farmers by b.a.t the spokesman added + it would have severe implications for farmers ' policy holders + to fend off sir james 's advances b.a.t has proposed a sweeping restructuring that would <unk> it to a tobacco and financial services concern + dismal sales at general motors corp. dragged the u.s. car and truck market down below year-ago levels in early october the first sales period of the N model year + the eight major domestic auto makers sold N north <unk> cars in the first N days of october a N N drop from a year earlier + domestically built truck sales were down N N to N <unk> vans and sport utility vehicles + the heavy use of incentives to clear out N models appears to have taken the steam at least initially out of N model sales which began officially oct. N + this appears particularly true at gm which had strong sales in august and september but saw its early october car and truck results fall N N from last year 's unusually high level + overall sales of all <unk> vehicles fell N N from a year ago + without gm overall sales for the other u.s. <unk> were roughly flat with N results + some of the u.s. auto makers have already adopted incentives on many N models but they may have to broaden their programs to keep sales up + we 've created a condition where without incentives it 's a tough market said tom kelly sales manager for bill <unk> chevrolet in dearborn mich + car sales fell to a seasonally adjusted annual selling rate of N million vehicles the lowest since october N + the poor performance contrasts with a robust selling rate of almost eight million last month + furthermore dealers contacted late last week said they could n't see any immediate impact on sales of friday 's steep market decline + gm 's domestic car sales dropped N N and its domestic trucks were down an even <unk> N N from the same period a year ago + all of the gm divisions except cadillac showed big declines + cadillac posted a N N increase despite new competition from lexus the <unk> luxury-car division of toyota motor corp + lexus sales were n't available the cars are imported and toyota reports their sales only at <unk> + the sales drop for the no. N car maker may have been caused in part by the end in september of dealer incentives that gm offered in addition to consumer rebates and <unk> financing a company spokesman said + last year gm had a different program in place that continued rewarding dealers until all the N models had been sold + aside from gm other car makers posted generally mixed results + ford motor co. had a N N drop in domestic car sales but a N N increase in domestic truck sales + chrysler corp. had a N N drop in car sales <unk> its generally slow performance all year + however sales of trucks including the company 's popular minivans rose N N + honda motor co. 's sales of domestically built vehicles plunged N N from a year earlier + honda 's plant in <unk> ohio was <unk> up to build N model accords a honda spokesman said + we 're really confident everything will bounce back to normal he added + separately chrysler said firm prices on its <unk> domestic cars and minivans will rise an average of N N over <unk> equipped N models + firm prices were generally in line with the tentative prices announced earlier this fall + at that time chrysler said base prices which are n't adjusted for equipment changes would rise between N N and N N on most vehicle + a totals include only vehicle sales reported in period + c domestic car + d percentage change is greater than N N + x there were N selling days in the most recent period and N a year earlier + percentage differences based on daily sales rate rather than sales volume + antonio l. <unk> N years old was named president and chief executive officer of the atlantic research corp. subsidiary + mr. <unk> had been a consultant to the subsidiary 's <unk> operations + mr. <unk> succeeds william h. <unk> who resigned to pursue personal interests + <unk> makes and repairs jet engines + it also has interests in military electronics and <unk> marine transportation and machinery used to make food and beverage cans + it was n't so long ago that a radio network funded by the u.s. congress and originally by the central intelligence agency was accused by officials here of <unk> <unk> <unk> and <unk> + now the network has opened a news bureau in the <unk> capital + employees held an open house to <unk> and even hung out a sign <unk> <unk> radio radio free europe + i think this is a victory for the radio says <unk> de <unk> a <unk> former <unk> <unk> who works in the <unk> west germany headquarters as deputy director of the <unk> service + in fact the network hopes to set up offices in warsaw and anywhere else in the east bloc that will have it + but the rapid changes brought on by glasnost and open borders are <unk> the network 's life in more ways than one + in fact radio free europe is in danger of suffering from its success + while the network currently can operate freely in <unk> so can others + in addition competition for <unk> is getting tougher in many ways than when broadcasting here was strictly controlled + instead of being denounced as an evil agent of <unk> radio free europe is more likely to draw the criticism that its programs are too <unk> even boring + they have a lot to do these days to compete with <unk> radio says andrew <unk> a <unk> student at the technical university in <unk> + the <unk> radio reporters seem better informed and more critical about about what 's going on here + indeed hungary is in the midst of a media explosion + boys on busy street corners <unk> newspapers of every political <unk> + <unk> are packed with a <unk> array of magazines + radio and television are getting <unk> and <unk> + the british broadcasting corp. and the u.s. state department 's voice of america broadcast over <unk> <unk> though only a few hours a day each in <unk> + australian press <unk> rupert murdoch has bought N N stakes in two popular and <unk> <unk> newspapers while britain 's robert maxwell has let it be known here that he is thinking about similar moves + but radio free europe does n't plan to <unk> away + with its mission for free speech and the capitalist way the network 's staff says it still has plenty to do in hungary and in the great eastern beyond + radio free europe and its sister station for the soviet union radio liberty say they wo n't cut back their more than N hours of daily <unk> + they are still an important source of news for N million <unk> in N exotic <unk> from <unk> and <unk> to <unk> and <unk> + the establishment of its first bureau in warsaw pact territory shows the <unk> of some of the changes in eastern europe + months before the decision by the <unk> communist party to <unk> itself socialist and try to look more appealing to voters the country 's <unk> were trying to look more <unk> + it proved a perfect time for radio free europe to ask for permission to set up office + not only did the <unk> ministry of foreign affairs approve radio free europe 's new location but the ministry of telecommunications did something even more amazing they found us four phone lines in central <unk> says <unk> <unk> a radio free europe <unk> who helped <unk> the <unk> location + that is a <unk> + it 's a far cry from the previous treatment of the network which had to overcome <unk> of its <unk> and <unk> of local <unk> who filed reports to the network by phone secret <unk> or letters + in fact some of the network 's <unk> <unk> say they owe radio free europe loyalty because it was responsible in many ways for keeping hope alive through what one writer here calls the dark ages of the 20th century + during the past four years many of us have sat up until late at night listening to our <unk> says the writer + there were some very <unk> <unk> + the <unk> too had to be <unk> + through much of the <unk> war ii period listening to western <unk> was a crime in hungary + when we listen to the europe station my mother still gets nervous says a <unk> <unk> + she wants to turn down the volume and close the <unk> + now the <unk> competition for radio free europe comes during the <unk> <unk> + <unk> radio often <unk> its most politically outspoken <unk> for around midnight + television which most of the time is considered rather <unk> has entered the running with a new program the end of the day which comes on after N p.m + it is a talk show with opposition leaders and political experts who discuss hungary 's domestic problems as well as foreign affairs + those who want to hear even more radical views have to get up at five on sunday morning for sunday journal on <unk> radio + the competitive spirit is clearly <unk> radio free europe which is trying to beef up programs + the <unk> office plans to hire free-lance reporters to cover the latest <unk> in <unk> country towns from <unk> in the west to <unk> in the east + the <unk> service has a daily <unk> news show called <unk> with international and domestic news plus a daily news review of opinions from around the world + there 's also a host of new programs trying to <unk> up on the traditional diet of politics + a daily <unk> program called the march of time tries to find interesting <unk> of <unk> news and <unk> from around the world + there 's a program for women and a science show + and to attract younger <unk> radio free europe <unk> the latest in western rock groups + the pet shop boys are big this year in <unk> + we are <unk> for all the news says mr. <unk> the student + every moment we want to know everything about the world + proposals for <unk> national service like <unk> <unk> up from time to time depress the resistance of the body <unk> run their course and seem to disappear only to <unk> and <unk> public life <unk> + the disease <unk> comes to mind of course not as an <unk> on the advocates of national service + rather it is born of frustration with having to combat constantly changing <unk> of a <unk> idea that one thought had been eliminated in the early 1970s along with <unk> + it is back with us again in the form of legislation to pay <unk> under a national and community service act a proposal with a serious shot at congressional passage this fall + why does the <unk> virus keep coming back + perhaps it is because <unk> <unk> <unk> both military experience and the social <unk> + if only we could get america 's <unk> youth into at least a <unk> uniform we might be able to teach <unk> again and revive the spirit of giving + a quarter of a century ago national service was <unk> as a way of <unk> the <unk> <unk> of the draft by of all things expanding the draft + those of us who resisted the idea then suspect today that an obligation of government service for all young people is still the true long-term aim of many <unk> backers despite their protests that present plans contain no <unk> + choice of the volunteer military in the 1970s seemed to <unk> national service as much as the draft + but the virus was kept alive in <unk> departments until a couple of years ago when it again was let loose + this time it attempted to <unk> two connected problems the rising cost of higher education and the rising expense to the federal government of educational grants and loans + why not keep and even expand the loans and grants the advocates <unk> but require some form of service from each <unk> + military service moreover could be a <unk> option + thus undoubtedly it was hoped that the new strain of national service would prove <unk> <unk> <unk> conservatives <unk> <unk> and <unk> liberals + the democratic leadership council a <unk> group <unk> the plan surely thought it might help the party to attract support especially among college students and their parents + a provision allowing grants to be applied to <unk> purchases was added to appeal to those who had had enough of <unk> + the <unk> plan <unk> <unk> <unk> trees <unk> <unk> <unk> children and <unk> <unk> for $ N a week tax free plus medical care + with a tax-free $ N <unk> payment at the end of each year the <unk> would be making a wage comparable to $ N a year + mind you most of the <unk> would be <unk> N to <unk> some not even high school graduates and many saving money by living at home + they would be doing better financially under national service than many taxpayers working at the same kinds of jobs and perhaps supporting families + as it happened political resistance developed among educational and minority interests that count on the present education grant system so the <unk> <unk> decided to abandon the supposedly crucial principle of give in order to get + opposition to national service from the pentagon which wants to protect its own <unk> process also led to the <unk> option being dropped + clearly a new rationale for national service had to be <unk> up + what better place to turn than sen. edward kennedy 's labor committee that great <unk> of government <unk> where many a <unk> pot of <unk> is kept on the back <unk> until it can be brought forward and presented as <unk> <unk> + before the <unk> is printed the house may add more <unk> also changing the initial price now posted at some $ N million + it is widely known that too many <unk> <unk> the <unk> but that wisdom does not necessarily reflect the view of the <unk> especially if they are senators + the omnibus bill coming out of congress may be <unk> <unk> but the <unk> chefs are happy and the restaurant is pushing the <unk> very hard + the <unk> of <unk> is in the air + is the voluntary sector so weak that it needs such unsolicited assistance + on the contrary it is as robust as ever + according to the <unk> poll american adults contribute an average of two hours a week of service while financial contributions to charity in the 1980s have risen N N adjusted for inflation + even if government does see various <unk> needs national service is not the way to meet them + if we want to support students we might adopt the idea used in other countries of offering more <unk> based on something called <unk> rather than on the government 's idea of service + or we might provide a tax credit for working students + what we do not need to do is start a war and then try to justify it by creating a <unk> bill + to the extent we lack manpower to staff <unk> jobs in hospitals for example we should raise pay pursue <unk> technology or allow more legal <unk> rather than <unk> high school graduates as short-term workers and cause <unk> among permanent workers paid lesser amounts to do the same jobs + will national service in the current highly <unk> and <unk> form <unk> enough appeal to get adopted + not necessarily + polls show wide <unk> support for some vague concept of service but the bill now under discussion lacks any <unk> public backing + nonetheless senate democrats are organizing a roll of supporting associations <unk> and <unk> some of which may hope to receive the paid <unk> + so far the president seems <unk> to substitute any of the omnibus for his own <unk> proposal to <unk> a points of light foundation with $ N million to inform citizens of all ages and <unk> them to genuine <unk> + however even this <unk> plan could become <unk> if the white house gives in to congressional democratic pressure to add to the scope of the president 's initiative or to involve the independent foundation in <unk> federal funds for volunteer projects + there 's no need for such concessions + the omnibus can be defeated the virus controlled and real service protected + national service the <unk> idea still wo n't go away then of course but the millions of <unk> youth performing works of civic content will be <unk> only in the <unk> of their <unk> + mr. <unk> is a fellow at the <unk> hudson institute + this article is adapted from remarks at a <unk> institution conference on national service in which mr. <unk> also participated + drug <unk> inc. said gary <unk> N years old who had been president and chief operating officer for the past year was named chief executive officer of this <unk> chain + he succeeds his father philip t. <unk> who founded the company and remains chairman + robert e. <unk> iii N who headed the company 's philadelphia region was appointed president and chief operating officer succeeding gary <unk> + american physicians service group inc. said it purchased about N N of prime medical services inc. for about $ N million from texas american energy corp + american physicians said it also replaced four texas american representatives on prime 's <unk> board + american provides a variety of financial services to doctors and hospitals + prime based in <unk> n.j. provides management services to <unk> rehabilitation <unk> and diagnostic <unk> centers + for the year ended june N prime had a net loss of $ N million on sales of $ N million + the inflation-adjusted growth rate for france 's gross domestic product for the second quarter was revised upward to N N from the previous three months from the initial estimate of N N the national statistics institute said + the state agency said the latest revision left the growth rate for the first-quarter compared with the previous three months unchanged at N N + if the economy continues to expand by N N a quarter for the rest of the year it would leave <unk> growth for all of N at N N the institute said + that would be down from the N N rise posted in N + the canadian government announced a new 12-year canada savings bond issue that will yield investors N N in the first year + the annual interest rate for each of the next N years will be set each fall when details of a new series are released + canada savings bonds are major government instruments for meeting its financial requirements + the government has about N billion canadian dollars us$ N billion of such bonds currently outstanding + only canadian residents are permitted to buy canada savings bonds which may be redeemed any time at face value + the bonds go on sale oct. N + the debate over national service has begun again + after a decade in which more than N <unk> established their own service or conservation corps and dozens of school systems made community service a <unk> to high-school <unk> the focus has shifted to washington + at least N bills proposing one or another national program were introduced in congress this spring + one <unk> by sen. sam <unk> d. <unk> and rep. dave <unk> d. okla. would have restricted federal college subsidies to students who had served + an omnibus bill assembled by sen. edward kennedy d. mass. and including some diluted <unk> provisions along with proposals by fellow democratic sens. <unk> <unk> barbara <unk> and christopher dodd has been reported out of the senate labor committee + it might well win senate passage + president bush has outlined his own youth entering service yes plan though its details remain to be specified + what is one to think of all this + doctrine and special interests govern some responses + people eager to have youth pay their <unk> to society favor service proposals <unk> mandatory ones + so do those who seek a <unk> concept of <unk> a concept imposing stern obligations as well as <unk> rights + then there are <unk> opponents + to <unk> mandatory service is an <unk> and voluntary systems are <unk> uses of tax money + <unk> of the market question the value of the work national service would perform + if the market wo n't pay for it they argue it ca n't be worth its cost + elements of the left are also <unk> opposed they see service as a cover for the draft or fear the <unk> of youth or want to see rights <unk> not obligations + but what about those of us whose views are not <unk> by formula or <unk> + how should we think about national service + let 's begin by recognizing a main source of confusion national service has no agreed meaning + would service be voluntary or <unk> + short or long + <unk> or full-time + paid or unpaid + would participants live at home and work nearby or live in <unk> and work on public <unk> + what kinds of work would they do + what does national mean + would the program be run by the federal government by local governments or by private voluntary organizations + and who would serve + only males as with the draft or both <unk> + youth only or all ages + middle-class people or poor people or a genuine <unk> + many or few + those are not <unk> questions and the label national service answers none of them + then how should we think about national service + as a starting point here are five <unk> N consider the <unk> not the name + ignore national service in the <unk> consider specific proposals + they will differ in crucial ways + N service should be service + as commonly understood service implies sacrifice + it involves accepting risk or giving up income or deferring a career + it follows that proposals like <unk> whose benefits to <unk> are worth some $ N a year do not qualify + there is a rationale for such bills federal subsidies to college students amount to a <unk> bill without the <unk> <unk> those benefits should be earned not given + but the earnings exceed by N N the average income of young high-school graduates with full-time jobs + why call that service + N encouragement is fine <unk> is not + <unk> service is unconstitutional + it is also <unk> and <unk> + who will throw several hundred thousand <unk> in jail each year + but through tax policy and in other ways the federal government encourages many kinds of behavior + it should also encourage service <unk> by all classes and all ages + its encouragement should strengthen and not undercut the strong tradition of <unk> in the u.s. should build on the service programs already in existence and should honor local convictions about which tasks most need doing + N good programs are not cheap + enthusiasts assume that national service would get important work done <unk> forest fires fought housing <unk> students <unk> <unk> centers <unk> + there is important work to be done and existing service and conservation corps have shown that even <unk> who start with few skills can do much of it well but not <unk> + good service programs require <unk> <unk> training and supervision all of high quality + they involve <unk> to participants + full-time residential programs also require housing and full-time supervision they are particularly expensive more per participant than a year at stanford or yale + <unk> programs are cheaper but good ones still come to some $ N a year + are they worth that + <unk> suggest that good ones are especially so if the effects on participants are counted + but the calculations are <unk> + N <unk> youth are a special concern + are such expenditures <unk> then + yes if targeted + people of all ages and all classes should be encouraged to serve but there are many ways for middle-class kids and their elders to serve at little public cost + they can volunteer at any of thousands of <unk> institutions or participate in service programs required by high schools or encouraged by colleges or employers + <unk> youth do n't have those opportunities + they are not <unk> in high school or college + they are unlikely to be employed + and they have grown up in <unk> grim circumstances among family structures breaking down surrounded by <unk> <unk> and bleak prospects + but many of them can be quite <unk> <unk> by productive and disciplined service + some wo n't accept the discipline others drop out for other reasons + but some whom nothing else is reaching are transformed + learning skills producing something <unk> feeling useful they are no longer dependent others now depend on them + even if it is cheaper to build <unk> or <unk> apartments or plant <unk> with paid professionals the effects on the young people providing those services alter the <unk> + strictly speaking these youth are not performing service + they are giving up no income deferring no careers <unk> no risk + but they believe themselves to be serving and they begin to respect themselves and others to take control of their lives to think of the future + that is a service to the nation + it is what federal support should try hardest to achieve + mr. <unk> a carter administration budget official heads his own washington-based strategic planning firm + he is a co-author of national service what would it mean + lexington books N + government officials here and in other countries laid plans through the weekend to head off a monday market <unk> but went out of their way to keep their moves quiet + federal reserve chairman alan greenspan was on the telephones making it clear to officials in the u.s. and abroad that the fed was prepared to <unk> massive amounts of money into the banking system as it did in october N if the action were needed to prevent a financial crisis + and at the treasury secretary nicholas brady talked with friends and associates on wall street while assistant secretary david mullins carefully <unk> data on the friday market plunge + but the officials feared that any public announcements would only increase market jitters + in addition officials at the fed and in the bush administration decided that avoiding <unk> actions and statements over the weekend would give them more strength and flexibility should friday 's market drop turn into this morning 's rout + the disadvantage at this point is that anything you do that looks like you are doing too much tends to reinforce a sense of crisis said one government official insisting on <unk> + the fed 's efforts at <unk> were partly <unk> sunday morning when both the new york times and the washington post carried stories <unk> a senior fed official saying the central bank was prepared to pour cash into the banking system monday morning + fed chairman greenspan was surprised by both stories according to knowledgeable sources and insisted he had n't authorized any public comment + nevertheless fed officials acknowledged the stories were reasonably accurate <unk> of the central bank 's game plan + it is prepared to assume the same role it played in october N providing money to the markets if necessary to keep the financial system afloat + the fed provides money to the banking system by buying government securities from financial institutions + the <unk> of federal officials was evident in the appearance sunday of budget director richard darman on abc 's this week + secretary of the treasury brady and chairman greenspan and the chairman of the sec and others have been in close contact + i 'm sure they 'll do what 's right what 's prudent what 's <unk> he said + when it was suggested his comment was a <unk> mr. darman replied it is a <unk> + but in this context that 's the smart thing to do + at the treasury secretary brady issued a statement <unk> the stock market 's drop + today 's stock market decline does n't signal any fundamental change in the condition of the economy he said + the economy remains <unk> and the outlook is for continued moderate growth + but administration officials conceded that friday 's drop carried the chance of further declines this week + one possibility is that this is a surgical setback reasonably limited in its <unk> and not a major problem said one senior administration official who also asked that he not be named + the other is that we see another major disaster like two years ago + i think that 's less likely + nevertheless fed chairman greenspan and vice chairman manuel johnson were in their offices sunday evening monitoring events as they <unk> in markets around the world + the action was expected to begin with the opening of the new zealand foreign exchange markets at N p.m. est when stocks there plunged and to continue as the trading day began later in the evening in tokyo and through early this morning in europe + both the treasury and the fed planned to keep market rooms operating throughout the night to monitor the developments + in tokyo share prices dropped sharply by N N in early monday morning trading + after the initial slide the market appeared to be turning around but by early afternoon was headed lower + in the bush administration the lead is being taken by treasury secretary brady undersecretary robert <unk> and assistant secretary mullins + the three men worked together on the so-called brady commission headed by mr. brady which was established after the N crash to examine the market 's collapse + as a result they have extensive knowledge in financial markets and financial market crises + mr. brady was at the white house friday afternoon when the stock market 's decline began + he was quickly on the phone with mr. mullins who in turn was talking with the chairmen of the new york and chicago exchanges + later mr. brady <unk> mr. greenspan sec chairman richard breeden and numerous contacts in new york and overseas + aides say he continued to work the phones through the weekend + administration officials say president bush was <unk> throughout friday afternoon and evening even after leaving for camp david + he had frequent telephone <unk> with mr. brady and michael <unk> chairman of the counsel of economic advisers + government officials tried throughout the weekend to <unk> a <unk> appearance in order to avoid any sense of panic + treasury undersecretary david mulford for instance was at a meeting of the business council in hot springs va. when the stock market fell and remained there through the following day + and as of last night fed chairman greenspan had n't canceled his plans to address the american bankers association convention in washington at N a.m. this morning + ironically mr. greenspan was scheduled to address the same convention in dallas on oct. N N + he flew to dallas on oct. N when the market plummeted N points but then turned around the next morning and returned to washington without delivering his speech + following is a weekly listing of <unk> net asset values of publicly traded investment fund shares reported by the companies as of friday 's close + also shown is the closing listed market price or a <unk> asked price of each fund 's shares with the percentage of difference + b as of thursday 's close + c translated at commercial rand exchange rate + e in canadian dollars + f as of wednesday 's close + <unk> N <unk> + z not available + put down that phone + walk around the room take two deep <unk> + resist the urge to call your broker and sell all your stocks + that 's the advice of most investment professionals after friday 's 190-point drop in the dow jones industrial average + no one can say for sure what will happen today + and investment pros are divided on whether stocks will perform well or badly in the next six months + but they 're nearly <unk> on one point do n't sell into a panic + investors who sold everything after the crash of N lived to regret it + even after friday 's plunge the dow jones industrial average was N N above where it landed on oct. N two years ago + panic selling also was <unk> during other big declines in the past + the crash of N was followed by a substantial recovery before the great depression and awful bear market of the 1930s began + the october <unk> of N and N were scary but did n't lead to severe or sustained <unk> + indeed some pros see friday 's plunge plus any further damage that might occur early this week as a chance for bargain hunting + there has been a lot of emotional selling that presents a nice buying opportunity if you 've got the cash says stephen b. <unk> chief investment officer of chicago-based kemper financial services inc + but most advisers think the immediate course for individual investors should be to stand pat + when you see a runaway train says steve <unk> partner in the san francisco investment advisory firm brouwer & <unk> you wait for the train to stop + even for people who expect a bear market in coming months and a sizable number of money managers and market <unk> do the advice is wait for the market to bounce back and sell shares gradually during rallies + the best thing individual investors can do is just sit tight says marshall b. front executive vice president and head of investment counseling at stein roe & <unk> inc. a chicago-based investment counseling firm that manages about $ N billion + on the one hand mr. front says it would be <unk> to sell into a classic panic + on the other hand it 's not necessarily a good time to jump in and buy + this is all <unk> right now and when <unk> starts to run it can run further than anyone anticipates he said + so it 's more prudent to wait and see how things stabilize + roger <unk> professor of finance at yale university and head of the market information firm <unk> associates inc. says my real advice would be to just ride through it + generally it is n't <unk> to be in and out of the stock market + mr. <unk> thinks that this week is going to be a roller-coaster week + but he also thinks it is a good week to consider buying + john <unk> former president of the los angeles chapter of the national association of investors corp. an organization of investment clubs and individual investors says his fellow club members did n't sell in the crash of N and see no reason to sell now + we 're dedicated long-term investors not traders he says + we understand <unk> and euphoria + and we hope to take advantage of <unk> and buy stocks when they plunge + one camp of investment pros sees what happened friday as an opportunity + over the next days and weeks they say investors should look for stocks to buy + friday 's action was an old-fashioned panic says alfred goldman director of technical market analysis for a.g. edwards & sons in st. louis + stocks were being thrown out of windows at any price + his advice you ought to be there with a basket catching them + james craig portfolio manager for the <unk> <unk> fund which has one of the industry 's better track records started his buying during friday 's plunge + stocks such as <unk> foods corp. <unk> stores inc. american international group inc. and federal national mortgage association became such bargains that he could n't resist them he says + and mr. craig expects to pick up more shares today + it will be chaotic at first but i would not be buying if i thought we were headed for real trouble he says + he argues that stocks are reasonably valued now and that interest rates are lower now than in the fall of N + mr. front of stein roe suggests that any buying should concentrate in stocks that have lagged the market on the up side or stocks that have been beaten down a lot more than the market in this correction + his firm favors selected computer drug and <unk> stocks + other investment pros are more pessimistic + they say investors should sell stocks but not necessarily right away + many of them stress that the selling can be orderly gradual and done when stock prices are <unk> + on thursday william <unk> a seattle money manager used futures contracts in his personal account to place a bet that the broad market averages would decline + he thinks the underlying inflation rate is around N N to N N far higher than most people <unk> + in the pension accounts he manages mr. <unk> has raised cash positions and invested in gold and natural gas stocks partly as an inflation hedge + he thinks government officials are <unk> to let a recession start when government corporate and personal debt levels are so high + so he thinks the government will <unk> on the side of <unk> inflation + as a result mr. <unk> says i think the ball game 's over and investors are about to face a bear market + david m. jones vice president at <unk> g. <unk> & co. recommends treasury securities of up to five years ' maturity + he says the oct. N employment report showing slower economic growth and a severe weakening in the manufacturing sector is a warning sign to investors + one strategy for investors who want to stay in but hedge their bets is to buy put options either on the individual stocks they own or on a broad market index + a put option gives its holder the right but not the obligation to sell a stock or stock index for a specified price the strike price until the option expires + whether this insurance is <unk> depends on the cost of an option + the cost or premium tends to get fat in times of crisis + thus buying puts after a big market slide can be an expensive way to hedge against risk + the prices of puts generally did n't soar friday + for example the premium as a percentage of the stock price for certain puts on eli lilly & co. moved up from N N at thursday 's close to only N N at friday 's close even though the shares dropped more than $ N + but <unk> prices may <unk> when trading <unk> today + it 's hard to <unk> about a reasonable price for puts + but investors should keep in mind before paying too much that the average annual return for stock holdings long-term is N N to N N a year a return of N N is considered <unk> + paying say N N for insurance against losses takes a deep <unk> out of the return + james a. white and tom <unk> contributed to this article + <unk> banker commercial group said it sold $ N million of common stock to its employees at $ N a share giving them a total stake of more than N N in the commercial real estate brokerage firm + the firm which was acquired in april from sears roebuck & co. in a management-led buy-out had planned to sell up to $ N million of stock or a N N stake in the company to its N employees + though the offering did n't sell out james j. <unk> chairman and chief executive officer said we 're pretty proud of the employees ' response + he noted that unlike an employee stock ownership plan where a company usually <unk> money from third party lenders to buy stock that it sets aside to award employees over time here employees had to <unk> out their own cash for the stock + they came up with their own money instead of borrowed money mr. <unk> said + it 's totally different + he said the offering was designed to create long-term incentives for employees + we 're in a service business and in that context it 's vital to have your employees involved in the ownership so they have a stake in the success + the brokerage firm wo n't pay a dividend on the stock + employees have the right to trade stock among themselves and the company will establish an internal clearing house for these transactions + they may also eventually sell the shares to third parties but the outside investors who own the remaining N N of <unk> banker have the right to first refusal + those outside investors in <unk> banker include <unk> group a closely held washington d.c. merchant banking firm whose <unk> is frank <unk> former secretary of defense <unk> v. <unk> senior adviser to <unk> group mellon family trust of pittsburgh westinghouse credit corp. the financial services unit of westinghouse electric corp. bankers trust co. a unit of bankers trust new york corp. and a group of japanese investors represented by the investment banking unit of tokyo-based <unk> bank + bankers trust and <unk> financed the $ N million acquisition from sears roebuck + <unk> banker also named three outside director <unk> for its N member board + the <unk> are gary wilson chief financial officer of walt disney co. james montgomery chief executive officer of great western financial corp. and peter <unk> former commissioner of baseball and now a private investor + the first major event this morning in u.s. stock and futures trading may be a <unk> at the chicago mercantile exchange + under a reform arising from the N crash trading in the merc 's stock-index futures will break for N minutes if the contract opens and stays five points from friday 's close a move equal to N points on the dow jones industrial average + the aim of the <unk> would be to ease the opening of the new york stock exchange which would be <unk> by such a volatile move on the merc + that <unk> <unk> is just one of a number of <unk> adopted after the N crash + the big board also added computer capacity to handle huge <unk> in trading volume + several of those post-crash changes kicked in during friday 's one-hour collapse and worked as expected even though they did n't prevent a stunning plunge + but the major circuit breakers have yet to be <unk> + a deeper market plunge today could give them their first test + a further slide also would <unk> debate over a host of other more sweeping changes proposed but not implemented after the last crash + most notably several of the regulatory steps recommended by the brady task force which <unk> the N crash would be revived especially because that group 's chairman is now the treasury secretary + the most controversial of the brady recommendations involved establishing a single <unk> regulator to handle crucial <unk> questions such as setting consistent margin requirements for the stock and futures markets + but for the moment attention focuses on the reforms that were put into place and market regulators and participants said the circuit breakers worked as intended + big board and merc officials expressed satisfaction with the results of two limits imposed on of the merc 's standard & poor 's N contract as well as <unk> communications among exchanges + those <unk> from N p.m. to N p.m. <unk> and from N p.m. until the close of trading a half-hour later forced traders to buy and sell contracts at prices at or higher than their frozen levels + during the first halt after the s&p index had fallen N points the big board 's <unk> computer program automatically was triggered + that system is designed to separate <unk> program trades from all other trades to help exchange officials resolve order imbalances in individual stocks + one merc broker compared the action in the s&p pit during the two <unk> to a fire at a <unk> school + you do n't want the fire but you know what to do said howard <unk> an independent floor broker and a merc governor + there was no panic + the system worked the way we devised it to work + after <unk> for about N minutes the s&p index tumbled to its <unk> limit and the second freeze went into effect + traders then spent the last half-hour watching to see if the dow would drop N points mr. <unk> added referring to the level at which the stock market itself would have closed for an hour + one <unk> estimated that N N to N N of the s&p traders were just standing around watching + but the <unk> circuit breaker never had to kick in and <unk> on the chicago board of trade 's major market index also were n't triggered + the mmi and the s&p N are the two major indexes used by program traders to run their computerized trading strategies + the programs are considered by many to be a major cause of the N crash + the process of post-crash reforms began with calls to <unk> the markets and wound up a year later with a series of rather technical adjustments + in october N just after the market drop washington was <unk> in talk of sweeping changes in the way the financial markets are structured and regulated + over the next year that grand agenda was <unk> down to a series of steps to soften big stock drops by <unk> trading to give market players time to <unk> and reconsider positions + in addition limits were placed on computer-driven trading and steps were taken to better link the stock and futures markets + few changes were made in the way the markets are regulated + at the outset the prime target was program trading which was much discussed but little understood on capitol hill + there were also calls to strip the stock markets of derivative products such as stock-index futures and options which federal judge stanley <unk> for example <unk> to <unk> attached to the basic market + and there was much criticism of the new york stock exchange 's system of having stock trades flow through specialists or market makers + when the brady task force 's powerful analysis of the crash was released in january N it immediately <unk> the reformers ' agenda + arguing that the separate financial <unk> acted as one and concluding that the crash had raised the possibility of a <unk> financial system breakdown the presidential task force called for establishing a <unk> to oversee the markets to make margins consistent across markets to <unk> clearing systems and to install circuit breakers + only the last of those recommendations ever was implemented + the reagan white house held the brady recommendations at arm 's length and named a second panel the working group on the financial markets to review its analysis and those of other crash studies + in may N the working group made up of representatives from the federal reserve the treasury the securities and exchange commission and the commodity futures trading commission finally endorsed only circuit breakers + after several more months of arguments among various stock exchanges and futures markets circuit breakers were set in place with the most notable <unk> trading after N and N point drops in the dow jones industrial average + privately some free <unk> dismissed such <unk> as <unk> to <unk> + after all this free-market argument went the dow only dropped more than N points once this century + circuit breakers set to soften big drops + if s&p futures fall N points at opening contract trading <unk> for N minutes + if dow industrials fall N points at opening contract trading <unk> for N minutes + if s&p futures fall N points equivalent to about N points on <unk> trading is frozen for half hour to that price or higher + on nyse program trades are diverted into a separate computer file to determine buy and sell orders + if s&p futures fall N points trading is restricted for an hour to that price or higher + if dow industrials fall N points trading on the big board halts for an hour + s&p and mmi contracts also halt + if <unk> drops N points big board halts trading for two hours + trading in mmi and s&p futures also halted + brady task force recommendations jan. N + establish an <unk> regulator for financial markets + <unk> <unk> systems + make margins consistent across stock and futures markets + sec proposals may N + require prompt reports of large securities trades + give sec authority to monitor <unk> by affiliates of brokerage firms + transfer jurisdiction over <unk> futures to sec from cftc + opposed by new sec chairman + give sec authority to halt securities trading also opposed by new sec chairman + congressional proposal + create a task force to review current state of the securities markets and securities laws + breaking the soviet government 's television monopoly an independent company has gained rights to show world programming including american films + there must not be a monopoly there must be freedom of choice for both journalists and viewers <unk> i. <unk> the president of the <unk> tv company told the weekly newspaper <unk> + the company is already working on its own programming in several <unk> cities and hopes to be on the air regularly in about a year the newspaper said + mr. <unk> told <unk> that he recently had been to the u.s. to pick up the rights to show N u.s. films in the soviet union + <unk> 's article was accompanied by a picture of mr. <unk> <unk> singer john denver in colorado + even though it will be independent of official television <unk> will have an oversight board that will include members of the communist youth league + south africa 's national union of <unk> said that about N diamond miners struck for higher wages at de beers consolidated mines ltd. + de beers said that workers at five of the group 's mines were on strike which it said was peaceful with orderly <unk> <unk> at one of the mines + the <unk> in negotiations occurred with de beers offering a N N increase in the minimum-wage category while the union demanded a N N increase in the minimum wage + japan 's opposition socialist party denied that its legislators had been <unk> by <unk> owners + the <unk> had been raised in parliament by the governing liberal democratic party following magazine reports suggesting that money from <unk> <unk> called pachinko had <unk> politics + <unk> <unk> secretary general of the socialist party acknowledged that nine party lawmakers had received donations from the pachinko association totaling N million yen about $ N but said the donations were legal and none of its members acted to favor the industry + the world wide fund for nature said that spain argentina thailand and indonesia were doing too little to prevent illegal trade in endangered wildlife across their borders + a report by the conservation group presented at the <unk> convention on international trade in endangered <unk> in <unk> accused the four of trading protected <unk> ranging from <unk> to <unk> + fund official simon <unk> said world trade in wildlife was estimated to total $ N billion of business annually + a nato project to build a <unk> for the 1990s was <unk> by the <unk> of three of its eight participating nations + britain france and italy announced technical reasons for <unk> but some officials pointed to growing reluctance among the allies to commit themselves to big defense spending while <unk> <unk> talks show signs of success + small wonder that britain 's labor party wants credit controls + a few hours after the party launched its own <unk> credit card earlier this month the <unk> raised the nation 's base interest rate + labor 's visa card is believed to be the first linked to a british political party + labor gets N pence N cents for every N about $ N that a user charges to the card + as with other plastic in britain 's <unk> environment the labor card <unk> by <unk> bank carries a stiff in this case N N annual rate on the unpaid balance + china 's <unk> <unk> program has achieved some successes in <unk> runaway economic growth and stabilizing prices but has failed to eliminate serious defects in state planning and an <unk> drain on state budgets + the official china daily said retail prices of <unk> foods have n't risen since last december but acknowledged that huge government subsidies were a main factor in keeping prices down + the state statistical bureau found that more than N billion <unk> $ N million was spent in the first half of the year for pork subsidies + the newspaper quoted experts as saying the subsidies would cause the difference between prices and real values of commodities to become very <unk> and reduce needed funds for investment in the already difficult state budget + the aim of the <unk> measures was to <unk> economic growth which soared to N N last year to N N in N + economists now predict the growth rate will be about N N for the year + in a sign of growing official <unk> for <unk> russian orthodox <unk> were allowed to <unk> the <unk> anniversary of the moscow <unk> in the kremlin 's <unk> <unk> <unk> where <unk> were <unk> + a <unk> $ N million <unk> of <unk> was completed on a hill outside hong kong facing china + the <unk> is the <unk> of <unk> <unk> <unk> director of the <unk> lin <unk> who said hong kong is such a <unk> place we also need some kind of <unk> symbol + it all seemed innocent enough last april one steven b. <unk> visited justin products inc. here identified himself as a potential customer and got the word on the little company 's new <unk> players for children + it is almost identical to the sony product mr. <unk> <unk> after seeing <unk> and pictures + replied a justin salesman exactly + the justin merchandise carried wholesale prices some N N below those of sony corp. of japan 's my first sony line + the <unk> <unk> enthusiastic and promised to return + but instead of a new customer part of a <unk> <unk> from <unk> sony justin got a costly legal <unk> + mr. <unk> it turned out was a private <unk> using a hidden tape recorder to gather information for sony + his recording later turned up as a court exhibit + seeking to keep justin 's my own product line off the u.s. market sony last may filed a suit in manhattan federal court <unk> the <unk> of trademark infringement unfair competition and other violations of business law + since then life has changed a lot for <unk> leonard <unk> justin 's owner + i have n't been able to get a decent night 's sleep since this has been going on he says + it 's the most <unk> thing in my life i ca n't even attend to my business + his company annual sales about $ N million may suffer a costly blow losing an estimated N N of total sales if sony annual sales about $ N billion <unk> + justin 's plight shows what can happen when a tiny company suddenly faces the full legal might of a <unk> multinational + with considerable irony the case also shows how completely japan has turned the tables on u.s. business + americans used to complain bitterly about being <unk> by <unk> products from japan + now sony whose innovative <unk> products are among the most <unk> in consumer electronics is bitterly complaining about a little u.s. firm with a cheap <unk> produced in china + the <unk> of this is that justin knocked off the sony line and sony wants to stop it says lewis h. <unk> sony 's attorney who previously <unk> <unk> 's <unk> + sony itself declines to comment + if sony wins mr. <unk> says its little rival will have to try to sell the products overseas + at worst he adds they 'd have to <unk> them all up and throw them away + mr. <unk> denies the suit 's charges and says his only mistake was taking on sony in the marketplace + i made a similar line and i produced it cheaper he says + today u.s. judge john e. <unk> is expected to rule on sony 's renewed request for a pre-trial order blocking sale of the disputed products on which deliveries began in july + the judge turned down an earlier sony request for such an order a decision upheld on appeal but sony returned with additional evidence and arguments + though hoping to settle the case justin <unk> to fight on if necessary + but the battle is more than justin <unk> for + i had no idea i was getting in so deep says mr. <unk> who founded justin in N + mr. <unk> had sold <unk> inc. a taiwan electronics maker and retired only to find he was <unk> + with justin he began selling toys and electronics made mostly in hong kong beginning with <unk> mouse <unk> + the company has grown to about N employees from four initially mr. <unk> says + justin has been profitable since N adds the official who shares his office with numerous teddy bears all samples from his line of <unk> toys + like many others mr. <unk> took notice in N when sony in a classic example of market <unk> changed the plastic skin and <unk> on the famous <unk> line of portable audio equipment and created the my first sony line for children + the <unk> <unk> new products looked more like toys than the adult models + in court papers sony says it has spent more than $ N million to promote the line with resulting sales of over a million units + sony found a new market niche but mr. <unk> figured that its prices left plenty of room for a <unk> competitor + his products are n't exact copies of sony 's but strongly resemble them in size shape and especially color + sony uses mostly red and blue with <unk> of yellow and so does justin on the theory that kids prefer these colors + to be successful a product can be any color <unk> as long as it is <unk> red says charles e. <unk> justin 's attorney + by last winter justin was showing <unk> at toy <unk> in hong kong and new york and sony noticed + indeed concerned that sony sales personnel were threatening legal action or other <unk> such as <unk> desirable sony products against justin 's customers mr. <unk> fired off a letter to sony in april + he himself threatened to take the matter to the federal trade commission or u.s. justice department + but justin has n't pursued those charges which were without merit according to mr. <unk> the sony attorney + recalls mr. <unk> our purpose was to influence them to leave us alone + we never intended taking on sony we do n't have the resources + sony answered the empty threat with its real suit + off and on since then the companies have <unk> in court + and justin in a news release says once competitive sony now resorts to <unk> tactics in american <unk> to <unk> out and protect niche markets + sony 's lawyer insists that the company 's tactics including the use of a private <unk> <unk> as a buyer are routine in such matters + he also insists that sony no less than others has a legal right to protect its trade dress in this case mostly the colors that it claims make my first sony products distinctive + justin claims it began using the same colors on electronic goods for children long before sony entered the children 's market + whatever its merits sony 's aggressive defense is <unk> for justin + it 's also costly + mr. <unk> says he has paid more than $ N in legal fees so far + of sony mr. <unk> says they know there 's no way for them to lose + they just keep <unk> me in deeper until i reach the point where i give up and go away + for now though he <unk> to hang in + <unk> charles h. <unk> ii chairman of <unk> corp. purchased N shares or N N of <unk> 's common according to a filing with the securities and exchange commission + the stock was bought on thursday in a privately negotiated transaction the filing said + as previously reported <unk> <unk> n.h. and <unk> gas & electric co. <unk> mass. are targets of unsolicited tender offers from <unk> eastern utilities associates + eastern utilities has offered $ N a share for <unk> and $ N a share for <unk> gas and has extended both offers to dec. N + both companies rejected the offers + dresdner bank ag of west germany has announced a friendly tender offer for control of banque <unk> de <unk> a french bank whose main shareholder is france 's societe generale the societe de <unk> <unk> said + the tender offer by west germany 's <unk> commercial bank is in two stages + dresdner is offering to acquire N N of <unk> 's capital for N francs $ N a share + the terms of the offer put a value of N million francs $ N million on the N N <unk> + the societe generale banking group controls N N of the <unk> while societe generale de <unk> s.a. owns N N and financiere tradition a holding company owns N N + mexican investor joel <unk> <unk> said he sold a block of N shares of smith laboratories inc. common stock to companies affiliated with him + in a filing with the securities and exchange commission mr. <unk> <unk> said <unk> syndicate inc. <unk> ii inc. and <unk> iii inc. bought the N shares on oct. N for $ N million or $ N a share + mr. <unk> <unk> said that he <unk> group ltd. <unk> <unk> ii and <unk> iii are all affiliated and hold a combined stake of N shares or N N + mr. <unk> <unk> has said he wants to purchase more shares + in san diego smith laboratories president timothy <unk> said the transfer of the shares is n't significant + <unk> new york said it and the management of sports & recreation inc. bought the operator of the <unk> sports <unk> chain for some $ N million + the investment bank becomes majority shareholder in sports & recreation a <unk> sporting goods retailer said oliver e. <unk> a member of <unk> 's management committee and a director of the chain + sports <unk> tampa fla. posted revenue of $ N million for the year ended july N + the company is very profitable on an operating basis mr. <unk> said but he declined to specify numbers + in N sports & recreation 's managers and certain passive investors purchased the company from <unk> corp. of <unk> ill + in the latest transaction management bought out the passive investors ' holding mr. <unk> said + hammond co. newport beach calif. said fidelity national financial inc. extended its previous agreement under which it wo n't purchase any more of the mortgage banker 's common stock through oct. N + the previous agreement expired thursday + hammond said that its discussions with fidelity an irvine calif. <unk> underwriter are continuing but that prospects for a longer-term standstill agreement are uncertain + fidelity has increased its stake in hammond to N N in recent months + statements made in securities and exchange commission filings led hammond to request a standstill agreement + giant group ltd. said it terminated negotiations for the purchase of <unk> airways a <unk> regional carrier that operates the united express <unk> service under contract to ual corp. 's united airlines + giant a beverly hills calif. collection of companies that is controlled by hollywood producer burt sugarman did n't give a reason for <unk> its plan to acquire the airline and <unk> officials could n't be reached for comment + giant agreed last month to purchase the carrier + giant has n't ever disclosed the proposed price although <unk> inc. an <unk> <unk> aircraft consulting concern has valued <unk> 's fleet at about $ N million + the airline would have become the latest in a <unk> <unk> of giant companies which are involved in making cement recycling newsprint and operating fast-food restaurants + the state-controlled insurer assurances <unk> de france said it has obtained regulatory approval to increase its stake in the financial holding company cie. de navigation mixte above N N from the current level of about N N + friday 's approval was needed to conform with <unk> rules regarding companies with bank interests and follows a similar approval given wednesday to cie financiere de paribas + both paribas and <unk> have been increasing their stakes in navigation mixte recently for what they have termed investment purposes although the issue has been surrounded by takeover speculation in recent weeks + <unk> did n't comment officially on its reasons for seeking the approval but people close to the group said it was done to make sure the group would have the flexibility to increase its stake in the future should interesting price opportunities arise + an <unk> official did specify however that there was no foundation to recent rumors the group might be acting in concert with paribas + lockheed <unk> systems co. a unit of lockheed corp. said it agreed to join with <unk> s.p a. of <unk> italy to propose a new generation of jet <unk> for the u.s. air force + the air force is looking to buy N new primary jet <unk> with a total value of $ N billion to $ N billion between N and N + the aircraft would replace the <unk> made by the <unk> aircraft co. unit of general dynamics corp. which the air force uses to train jet pilots + lockheed said the u.s. navy may also buy an additional N <unk> aircraft to replace its <unk> <unk> made by the <unk> aircraft corp. unit of <unk> corp + under the agreement with lockheed <unk> will license lockheed to build the <unk> <unk> jet <unk> and will supply certain structures + lockheed will build additional structures and perform final assembly of the <unk> <unk> at its <unk> ga. plant should the air force order the craft + a lockheed spokesman in <unk> calif. said he was n't aware of which other companies would be competing for the air force contract + striking auto workers ended their <unk> <unk> of a metal shop at a <unk> s.a. factory in eastern france friday as pay talks got under way in the capital + but the <unk> <unk> came as a nationwide dispute by finance ministry employees disrupted border <unk> and threatened the government 's ability to pay its bills + the <unk> <unk> began filing out of the shop which makes auto parts at the plant in <unk> after voting N to N to abandon the <unk> + their withdrawal was based on promises by <unk> to open negotiations in paris at the same time the last man left the premises + the strike by customs officers tax collectors treasury workers and other civil <unk> attached to the ministry of finance may pose a more serious challenge to the government and the average <unk> + ministry employees complain that they are poorly paid because of a complex <unk> system they say fails to take into account their education and level of technical expertise + the market for $ N billion of high-risk junk bonds battered by a succession of defaults and huge price declines this year practically <unk> friday + trading ground to a halt as investors rushed to sell bonds only to find themselves <unk> by potential buyers + stunned they watched brokerage houses mark down price quotations on their junk holdings while being able to execute very few actual trades + the junk bond market is in a state of gridlock now there are no bids only offers says independent investor martin d. <unk> who manages nearly $ N billion and who recently decided to buy <unk> securities for a new fund + this <unk> is far from over he says + junk 's collapse helped <unk> the <unk> selling of stocks that produced the <unk> one-day dive in the dow jones industrial average since the oct. N N crash + simultaneously it also helped trigger this year 's biggest rally in the u.s. government bond market as investors rushed to move capital into the <unk> securities they could find + but an <unk> <unk> <unk> the junk market friday as prices tumbled on hundreds of high-yield bonds despite no active trading says john <unk> an economist at moody 's investors service inc + for example the price of <unk> corp. 's $ N million of N N N bonds due N sold less than two years ago by goldman sachs & co. plummeted N N to just N cents on the dollar + but not even goldman would make a market in the securities of <unk> the owner of the nationwide chain of N convenience stores that is strapped for cash + goldman officials declined to comment + junk bonds which <unk> from less than $ N billion at the start of this decade have been declining for months as issuer after issuer sank beneath the weight of hefty interest payments + the shaky market received its biggest jolt last month from campeau corp. which created its u.s. retailing empire with junk financing + campeau developed a cash squeeze that caused it to be <unk> on some interest payments and to put its prestigious <unk> department-store chain up for sale + now dozens of corporations including <unk> allen tw services and york international that are counting on at least $ N billion of scheduled new junk financings to keep their highly leveraged takeovers and buy-outs afloat may never get the money + the music has stopped playing says michael <unk> a principal in the investment firm of levy <unk> + you 've either got a chair or you do n't + in friday 's aftermath says r. douglas <unk> a director of high-yield finance at first boston corp. much of the $ N billion forward calendar could be deferred depending on the <unk> + in august first boston withdrew a $ N million junk offering of ohio <unk> bonds because potential buyers were very <unk> + the outlook looks shaky because we 're still waiting for mutual funds in particular to dump some of their junk bond holdings to pay off redemptions by individual investors says king <unk> senior vice president at <unk> <unk> & <unk> an investment arm of xerox financial services + indeed a moody 's index that tracks the net asset values of N high-yield mutual funds declined for the <unk> consecutive day friday + in a stark contrast the benchmark 30-year treasury bond climbed more than N N points or about $ N for each $ N face amount to N N its biggest gain of the year + the bond 's yield dropped to N N the lowest since march N N according to technical data global markets group + the yield on three-month treasury bills considered the <unk> of all investments plummeted about N percentage point to N N the largest one-day decline since N + the main catalyst for government bond market rally was the 190.58-point drop in the dow jones industrial average + when you get panic in one market you get flight to quality in the other said maria ramirez money market economist at drexel burnham lambert inc + nevertheless the problems of the junk market could prompt the federal reserve to ease credit in the months ahead + this marks a significant shift in the interest rate outlook says william sullivan director of money market research at dean witter reynolds inc. new york + any sustained <unk> could be a lift for junk bonds as well as other securities + robert dow a partner and portfolio manager at lord <unk> & co. which manages $ N billion of high-yield bonds says he does n't think there is any fundamental economic rationale for the junk bond rout + it was <unk> <unk> + he adds the junk market has <unk> some trouble and now some people think that if the equity market gets <unk> that means the economy will be terrible and that 's bad for junk + i do n't believe that 's the case but i believe that people are running scared + there is a flight to quality and the quality is not in equities and not in junk it 's in treasurys + even as trading in high-yield issues <unk> up over the past month corporations sold more than $ N billion of new junk bonds + for example a recent $ N million offering of <unk> gas services l.p. bonds sold by first boston was three times oversubscribed + a $ N million offering of turner broadcasting system inc high-yield securities sold last week by drexel was increased $ N million because of strong demand + first boston estimates that in november and december alone junk bond investors will receive $ N billion of coupon interest payments + that 's a clear indication that there is and will be an <unk> of basic business going on says mr. <unk> of first boston + i do n't know how people can say the junk bond market disappeared when there were $ N billion of orders for $ N million of junk bonds sold last week by turner says raymond <unk> <unk> of merchant banking at merrill lynch & co + when the rally comes insurance companies will be leading it because they have billions to invest and invest they will + there is plenty of money available from people who want to buy <unk> deals it 's the stuff that 's financed on a <unk> that people are wary of + but such highly leveraged transactions seemed to have <unk> this year casting a pall over much of the junk market + michael <unk> director of fixed-income research at kemper financial services says the quality of junk issues has been getting poorer contributing to the slide in prices + last year we probably bought one out of every three new deals he says + this year at best it 's in one in every five or six + and our credit standards have n't changed one <unk> + however mr. <unk> said the slide in junk is creating one hell of a buying opportunity for selective buyers + for the moment investors seem more <unk> with the bad junk than the good junk + the market has been weak since the announcement of the campeau cash squeeze and the company 's subsequent bailout by olympia & york says mr. <unk> of merrill lynch + that really affected the market in that people started to ask what else is in trouble + well before campeau though there were signs that the junk market was <unk> through one of its worst years ever + despite the relatively strong economy junk bond prices did nothing except go down <unk> by a seemingly endless trail of bad news + in june two months before it would default on interest payments covering some of its $ N billion of speculative debt securities new york-based integrated resources inc. said it ran out of borrowed money + in july southmark corp. the dallas-based real estate and financial services company with about $ N billion of junk bonds voluntarily filed for protection under u.s. bankruptcy law + by the end of july the difference in yield between an index of junk bonds and seven-year treasury notes widened to more than N percentage points + in august resorts international inc. which sold more than $ N million of junk bonds suspended interest payments + in september just as the cash squeeze hit campeau <unk> financial corp. defaulted on $ N million of notes and appeared unlikely to pay interest on a total of $ N billion of debt securities + meantime regulators are becoming increasingly worried as the rush to leverage shows no signs of <unk> + moody 's says the frequency of corporate credit <unk> is the highest this year since N + in addition there are six times as many troubled banks as there were in the recession of N according to the federal deposit insurance corp + the era of the 1980s is about compound interest and the reaching for it says james grant editor of grant 's interest rate <unk> an early critic of the junk bond market + what we 've begun to see is the damage to businesses of paying <unk> compound interest + businesses were borrowing at interest rates higher than their own earnings + what we 're seeing now is the <unk> <unk> of asset values to a future when <unk> debt will be hard to obtain rather than easy + friday 's market activity + prices of treasury bonds surged in the biggest rally of the year as investors fled a <unk> stock market + the benchmark 30-year treasury bond was quoted N p.m. edt at N N compared with N N thursday up N N points + the yield on the benchmark fell to N N the lowest since march N N according to technical data global markets group + the flight to quality began late in the day and followed a <unk> fall in the stock market + treasurys opened lower reacting <unk> to news that the producer price index a measure of inflation on the wholesale level accelerated in september + bond prices barely <unk> until midday + many bond market participants will be closely <unk> the action of the federal reserve which might repeat its october N injection of huge amounts of liquidity to <unk> the financial markets and keep the economy from slowing into a recession + prices of municipals investment-grade <unk> and mortgage-backed bonds also rose but lagged behind their treasury counterparts + mortgage securities rose in hectic trading with most of the activity concentrated in government national mortgage association N N coupon securities the most liquid mortgage issue + the ginnie mae november N N issue ended at N N up N point on the day to yield about N N to a 12-year average life assumption + investment-grade corporate bonds were up about N to N point + but the yield spread between <unk> investment-grade issues and <unk> bonds widened + and the yields on telephone and utility issues rose relative to other investment-grade bonds in anticipation of this week 's $ N billion bond offering by the tennessee valley authority + despite rumors that the tva 's long-awaited offering would be postponed because of the debacle in the equity markets sources in the underwriting syndicate said they expect the issue will be priced as scheduled + one of the sources said the smaller portions of $ N million each of five-year and 10-year bonds have already been substantially oversubscribed + municipal bonds rose as much as N point + roger <unk> contributed to this article + friday 's 190-point plunge in stocks does not come <unk> the climate of anxiety that dominated financial markets just prior to their N october crash and <unk> have been put in place to keep markets more orderly + still the lesson is about the same on friday the 13th the market was spooked by washington + the consensus along the street seems to be that the plunge was triggered by the financing problems of the ual takeover and it 's certainly true the rout began immediately after the ual trading halt + still the consensus seems almost as wide that one <unk> bid is no reason to write down the value of all u.s. business + this <unk> leads us to another piece of news moving on the dow jones <unk> shortly before the downturn the success of senate democrats in <unk> the capital gains tax cut + the real value of all shares after all is directly <unk> by the tax on any profits all the more so given the limits on deductions for losses that show gains are not ordinary income + and market expectations clearly have been raised by the capital gains victory in the house last month + an hour before friday 's plunge that provision was stripped from the tax bill leaving it with $ N billion in tax increases without a capital gains cut + there is a great deal to be said to be sure for <unk> the garbage out of the reconciliation bill + it would be a good thing if congress started to decide issues <unk> on their individual merits without <unk> + for one thing no one doubts that the capital gains cut would pass on an <unk> vote + since senate leaders have so far <unk> it up with procedural <unk> promises of a cleaner bill are suspect + especially so since president bush has been weakened by the panama <unk> + to the extent that the ual troubles contributed to the plunge they are another instance of washington 's <unk> fingers + as the best opportunities for corporate restructurings are exhausted of course at some point the market will start to reject them + but the airlines are <unk> a clear case given anti-takeover <unk> by secretary of transportation skinner who <unk> to believe safety will be <unk> if <unk> and british airways own interests in companies that fly airplanes + worse congress has started to jump on the skinner <unk> + james <unk> the minnesota democrat who chairs the public works and transportation committee 's aviation subcommittee has put an <unk> takeover bill on <unk> speed so that it would be passed in time to affect the american and united air lines bids + it would give mr. skinner up to N days to review any bid for N N or more of the voting stock of any u.s. carrier with revenues of $ N billion or more + so the ual deal has problems and the market loses N points + <unk> mr. secretary and mr. congressman + in the N crash remember the market was shaken by a danny <unk> proposal to tax takeovers out of <unk> + even more important in our view was the treasury 's threat to <unk> the dollar + the treasury is doing the same thing today <unk> the dollar is not under <unk> pressure + also traders are in better shape today than in N to survive selling <unk> + they are better capitalized + they are in less danger of losing liquidity simply because of tape <unk> and clearing and settlement delays + the fed promises any needed liquidity + the big board 's <unk> with the chicago board of trade has improved it will be interesting to learn if circuit breakers prove to be a good idea + in any event some traders see stocks as <unk> today unlike N + there is nothing wrong with the market that ca n't be <unk> by a little <unk> and common sense in washington + but on the bearish side that may be too much to expect + first chicago corp. posted a third-quarter loss of $ N million after joining other big banks in further adding to its reserves for losses on foreign loans + the parent company of first national bank of chicago with $ N billion in assets said it set aside $ N million to absorb losses on loans and investments in financially troubled countries + the addition on top of two big N additions to <unk> reserves brings the reserve to a level equaling N N of <unk> and long-term loans outstanding to troubled nations + first chicago since N has reduced its loans to such nations to $ N billion from $ N billion + despite this loss first chicago said it does n't need to sell stock to raise capital + during the quarter the company realized a pretax gain of $ N million from the sale of its first chicago investment <unk> unit + combined foreign exchange and bond trading profits dipped N N against last year 's third quarter to $ N million from $ N million + gains from first chicago 's venture capital unit a big leveraged buy-out investor rose N N to $ N million from $ N million a year ago + interest income and most fee income was strong + greece 's second <unk> of general elections this year is slated for nov. N + for those hoping to see a <unk> of political <unk> restored in view of greece 's <unk> <unk> under <unk> <unk> and subsequent three-month <unk> with a <unk> coalition government there is but one bright sign the scandals still <unk> former prime minister andreas <unk> and his fallen socialist government are like flies <unk> around a <unk> <unk> + in the <unk> round of voting <unk> gave no clear mandate to any single political party + the ad interim coalition government that emerged from <unk> <unk> was in <unk> little more than the <unk> <unk> of ideological <unk> on one side the <unk> new democracy party headed by <unk> <unk> + on the other the so-called coalition of the left and progress a <unk> and rather deceptive title for a merger of the <unk> communist party of greece and its <unk> <unk> the <unk> left + the <unk> bond for this <unk> <unk> was plain <unk> mr. <unk> 's party as common political enemy + the <unk> goal was a <unk> of government corruption <unk> at all levels but the main marks were mr. <unk> and his <unk> associates + in point of fact this <unk> was overdue by decades + when reduced to <unk> status in <unk> <unk> <unk> however the notion <unk> into a promised assault with targets primarily for political gains not justice + with regard to greece 's <unk> <unk> scandal mr. <unk> 's principal <unk> remains george <unk> former owner of the bank of <unk> and <unk> <unk> now <unk> in a jail cell in <unk> mass. from where he is fighting <unk> proceedings that would return him to greece + mr. <unk> 's credibility is at best <unk> + he has ample motive to shift the blame and his testimony has also been found less than <unk> on numerous points + nevertheless the new democracy and communist parties herald his <unk> as proof of <unk> <unk> + among <unk> questions are whether mr. <unk> received $ N million of stolen bank of <unk> funds and an additional $ N in <unk> as contended whether the prime minister ordered state agencies to deposit some $ N million in mr. <unk> 's bank and then <unk> off the interest and what <unk> 's cut was from the $ N million mr. <unk> <unk> + two former ministers were so heavily <unk> in the <unk> affair that <unk> members of parliament voted to refer them to the special court + but <unk> parliamentary probe was the case of millions of <unk> mr. <unk> <unk> into new democracy <unk> + in the end the investigation produced only <unk> evidence and indications that point to <unk> not <unk> proof + on another issue <unk> were told how their national intelligence agency the <unk> regularly monitored the telephone conversations of prominent figures including key opposition politicians journalists and <unk> cabinet members + despite convincing arguments it was never established that mr. <unk> personally ordered or directed the <unk> + the central weakness of the scandals debates was pointed up especially well when discussions focused on arms deals and <unk> + the coalition government tried to show that <unk> ministers had received hefty sums for <unk> the purchase of <unk> fighting falcon and mirage N combat aircraft produced by the <unk> general dynamics corp. and france 's <unk> <unk> dassault respectively + naturally neither general dynamics nor dassault could be expected to <unk> its prospective future dealings by making disclosures of sums paid or not to various <unk> officials for services <unk> + so it seems that mr. <unk> and his communist <unk> may have <unk> served mr. <unk> a moral victory on a <unk> <unk> whether guilty or not can now <unk> the <unk> <unk> the whole affair as a <unk> hunt at mr. <unk> 's expense + but while <unk> high <unk> alone wo n't help <unk> regain power mr. <unk> should never be underestimated + first came his predictable <unk> he charged the coalition of the left and progress had sold out its leftist <unk> by <unk> in a <unk> plot aimed at <unk> <unk> and <unk> the course of socialism in greece + then to <unk> his credibility with the left he <unk> some smaller leftist parties to stand for election under the <unk> <unk> + next he continued to court the communists many of whom feel <unk> by the <unk> coalition 's birth by bringing into <unk> a <unk> communist party candidate + for balance and in hopes of gaining some <unk> <unk> votes he managed to attract a former new democracy party representative and known political enemy of mr. <unk> + thus <unk> heads for the polls not only with diminished <unk> but also with <unk> of approval from representatives of its <unk> <unk> + crucial as these elections are for greece pressing issues of state are getting lost in the <unk> + the country 's future nato participation remains <unk> for instance + greece also must <unk> major pieces of legislation in preparation for the N targets of heightened common market cooperation + greece 's <unk> relations with the u.s. need attention soon as well + for one the current accord concerning u.s. military bases in greece <unk> in may N + negotiations for a new agreement were frozen before the june elections but the <unk> is running + another matter of concern is the <unk> of <unk> <unk> a palestinian terrorist who is wanted in the u.s. for the N <unk> of a pan american airways flight + the <unk> courts have decided in favor of <unk> in the <unk> case but the matter <unk> final approval from greece 's next justice minister + the <unk> seem barely aware of the importance of the case as a <unk> test of whether greece will be counted in or out for international efforts to combat terrorism + that <unk> could win the elections outright is <unk> the <unk> press previously eager to palm off <unk> 's line has turned on mr. <unk> with a <unk> <unk> + yet the possibility of another <unk> government is all too real + if mr. <unk> becomes the major opposition leader he could <unk> a <unk> coalition + also he could force new elections early next year by frustrating the procedures for the election of the president of the republic in march + new democracy has once again <unk> underestimated the opponent and linked its own prospects to negative reaction against <unk> <unk> to tend to either program <unk> or the <unk> of internal <unk> + as for mr. <unk> + he 's not exactly sitting pretty at this stage + but since he is undoubtedly one of the most <unk> bull <unk> who ever <unk> <unk> it seems far <unk> to view him as <unk> but certainly not yet eliminated + mr. carpenter a regional <unk> for national review has lived in <unk> since N + u.s. officials moved to head off any repeat of black monday today following friday 's plunge in stock prices + fed chairman greenspan signaled that the central bank was prepared to <unk> massive amounts of money into the banking system to prevent a financial crisis + other u.s. and foreign officials also <unk> out plans though they kept their moves quiet to avoid making the financial markets more jittery + friday 's sell-off was triggered by the collapse of ual 's buy-out plan and a big rise in producer prices + the dow jones industrials skidded N to N + the junk bond market came to a standstill while treasury bonds soared and the dollar fell + japanese stocks dropped early monday but by late morning were turning around + the dollar was trading sharply lower in tokyo + prospects for a new ual buy-out proposal appear bleak + many banks refused to back the $ N billion transaction but bankers said it was not from any <unk> to finance takeovers + the decision was based solely on problems with the ual <unk> plan they said + the surge in producer prices in september followed three months of declines but analysts were divided on whether the N N jump signaled a severe worsening of inflation + also retail sales grew N N last month + a capital-gains tax cut was removed from the senate 's deficit reduction bill but proponents still hope to enact the cut this year + bush wo n't press for a capital-gains provision in the final deficit bill when house-senate conferees meet later this week + general motors signaled that up to five north american assembly plants may close by the mid-1990s as it tries to cut excess capacity + u.s. car and truck sales fell N N in early october the first sales period of the <unk> year dragged down by a sharp decline in gm sales + warner and sony are <unk> in a legal battle over movie producers peter <unk> and jon peters + the fight could set back sony 's plans to enter the u.s. movie business + hooker 's u.s. unit received a $ N million bid for most of its real-estate and <unk> assets from an investor group + the offer does n't include <unk> teller or b. altman + the boeing strike is starting to affect airlines + america west said friday it will postpone its new service out of houston because of delays in receiving aircraft from boeing + saatchi & saatchi would launch a management buy-out if a hostile suitor emerged an official said + british aerospace and france 's <unk> are <unk> a pact to merge <unk> divisions + new u.s. <unk> quotas will give a bigger share to developing nations that have relatively <unk> steel industries + japan 's steel quota will be cut significantly + four ailing s&ls were sold off by government regulators but low bids prevented the sale of a fifth + markets + stocks volume N shares + dow jones industrials N off N transportation N off N utilities N off N + bonds shearson lehman hutton treasury index N up + commodities dow jones futures index N up N spot index N up N + dollar N yen off N N marks off N + a federal appeals court in san francisco ruled that shareholders ca n't hold corporate officials liable for false sales projections on new products if the news media <unk> revealed substantial information about the product 's flaws + the ruling stems from a N suit filed by shareholders of apple computer inc. claiming that company officials <unk> investors about the expected success of the <unk> computer introduced in N + lawyers specializing in shareholder suits said they are concerned that use of the press defense by corporations may become popular as a result of the ruling + according to the suit apple officials created public excitement by touting <unk> as an office computer that would <unk> the workplace and be extremely successful in its first year + the plaintiffs also alleged that prior to the fanfare the company circulated internal <unk> indicating problems with <unk> + the suit claimed apple 's stock climbed to a high of $ N a share on the basis of the company 's optimistic forecasts + but when the company revealed <unk> 's poor sales late in N the stock plummeted to a low of $ N a share according to the suit + the shareholders claimed more than $ N million in losses + in N the san francisco district court dismissed the case largely because newspaper reports had sufficiently <unk> the company 's statements by <unk> consumers to <unk> 's problems + late last month the appeals court agreed that most of the case should be dismissed + however it gave the shareholders the right to pursue a small portion of their claim that <unk> to <unk> 's disk drive known as <unk> + the court ruled that the news media did n't reveal <unk> 's problems at the time + lawyers are worried about the ruling 's implication in other shareholder suits but pointed out that the court stressed that the ruling should be regarded as very specific to the apple case + the court was careful to say that the adverse information appeared in the very same articles and received the same attention as the company 's statements said patrick <unk> a los angeles lawyer at the firm of <unk> & <unk> which was n't involved in the case + the court is saying that the adverse facts have to be transferred to the market with equal intensity and credibility as the statements of corporate insiders + shareholders ' attorneys at the new york firm of <unk> weiss <unk> <unk> & <unk> last week <unk> for a <unk> of the case + they wrote the opinion <unk> a new rule of <unk> that if a wide variety of opinions on a company 's business are publicly reported the company can say anything without fear of securities liability + nfl ordered to pay $ N million in legal fees to <unk> + the national football league is considering appealing the ruling stemming from the u.s. football league 's largely unsuccessful antitrust suit against the nfl + a jury in N agreed with the <unk> 's claims that the nfl <unk> major league football + but the jury awarded the <unk> only $ N in damages <unk> because of the antitrust claims + last week the u.s. court of appeals in new york upheld a $ N million award of attorneys fees to the <unk> league + <unk> d. <unk> of <unk> & <unk> then of <unk> <unk> <unk> <unk> <unk> <unk> <unk> & <unk> was the lead trial lawyer and his new firm pursued the application appeal + douglas r. <unk> of <unk> & <unk> says about $ N million of the award goes directly to the <unk> to reimburse it for fees already paid + <unk> & <unk> will get about $ N for the costs of pressing the application + the federal appeals court held that the nominal damages and the failure to prove all claims did n't exclude the <unk> from being <unk> + antitrust laws provide that injured parties may be <unk> for lawyers ' fees + but <unk> <unk> an attorney for the nfl says his client will consider asking for another hearing or appealing to the u.s. supreme court + mr. <unk> of <unk> <unk> slate <unk> & flom in new york says the ruling is wrong and the fee award is excessive because the <unk> lost its major claims including its <unk> that the nfl <unk> trade through television contracts + the <unk> was not the prevailing party mr. <unk> insists + <unk> alliance + <unk> & <unk> of houston and <unk> robertson fraser & hatch of calgary alberta are <unk> to help serve their <unk> clients + the <unk> is believed to be the first such cross-border arrangement among major law firms + the firms are n't required to refer work exclusively to each other and remain separate organizations + but they will work together on energy environmental and <unk> issues and conduct <unk> on topics of mutual interest said <unk> <unk> jr. of <unk> <unk> & <unk> + in addition <unk> & <unk> 's washington d.c. office will play a key role as the firms work together on regulatory issues particularly natural-gas exports for their clients + the arrangement reached after about eight months of negotiations grew out of <unk> <unk> robertson 's desire to develop ties with a u.s. firm in light of <unk> trade barriers between the u.s. and canada said francis m. <unk> of <unk> robertson + in what may signal a turnaround for asbestos manufacturers <unk> grace & co. won a N <unk> trial in pittsburgh over whether it should be required to remove asbestos <unk> from a local high school + mount lebanon high school near pittsburgh sought $ N million in <unk> damages from grace arguing that the asbestos which can cause <unk> diseases and lung cancer posed a risk to students + grace successfully contended that removing the fire <unk> would pose a greater health risk than leaving it alone + a spokesman for the company said the verdict is thought to be the first in favor of an asbestos manufacturer where the plaintiff was a school and the asbestos in question was used for <unk> + fcc counsel joins firm + <unk> s. <unk> will join <unk> morrison & <unk> as a partner in its washington d.c. office in <unk> + she will help develop the <unk> practice of the san <unk> firm 's communications group + ms. <unk> N years old resigned as federal communications commission general counsel early this month after nearly three years in that post + she was the first woman to be appointed fcc general counsel + richard p. <unk> formerly eastern airlines ' top lawyer joined the new york law firm of lord day & lord barrett smith as a partner + mr. <unk> N spent N years at the miami airline unit of <unk> texas air corp. and was named general counsel in N + he left the company in N + mr. <unk> said he will split his time between the <unk> firm 's offices in washington d.c. and new york with <unk> in aviation and labor law + apple computer inc. said it will offer cash rebates on several of its machines from oct. N to dec. N as part of a <unk> sales promotion + apple will offer a $ N <unk> on its apple <unk> with any apple monitor and disk drive $ N on the basic <unk> plus central processing unit $ N on the <unk> <unk> central processing unit $ N on the <unk> <unk> <unk> and $ N on a <unk> <unk> with any apple video card and apple monitor + the rebates as a percentage of the retail cost of the <unk> of each system amount to N N to N N + the company is also offering a free trial of its computers to consumers who qualify for its credit cards or leases + <unk> electric industrial co. of japan and siemens ag of west germany announced they have completed a N <unk> $ N million joint venture to produce electronics parts + in the venture 's first fiscal year siemens will hold N N of the venture and a <unk> subsidiary <unk> electronic components co. N N + a basic agreement between the two companies was announced in june + the new company is to be called siemens <unk> components g.m.b <unk> + it will have its headquarters in <unk> + <unk> 's share in the venture will rise to N N oct. N N and to N N the following oct. N + siemens will retain majority voting rights + the parent companies forecast sales for the venture of around N million marks for its first fiscal year <unk> said + sales are expected to rise to one billion marks after four years + the company will have production facilities in west germany <unk> france and spain + roger <unk> editor of u.s. news & world report resigned friday from the weekly news magazine + mr. <unk> said he resigned because of difficulties with <unk> between his home in new york and the magazine 's editorial offices in washington + frankly i missed my family said mr. <unk> + in mr. <unk> 's tenure the magazine 's advertising pages and circulation have grown significantly + but at N million weekly paid circulation u.s. news still ranks third behind time warner inc. 's time magazine with N million circulation and washington post co. 's newsweek with N million circulation + <unk> b. <unk> chairman and editor in chief said mr. <unk> would be succeeded starting today by michael <unk> the magazine 's executive editor and merrill <unk> a senior writer + mr. <unk> and ms. <unk> are married to each other + mr. <unk> said his magazine would maintain its editorial format which is a mix of analysis and trend stories with <unk> <unk> articles + mr. <unk> a senior writer at time magazine before joining u.s. news & world report said he had numerous job offers from other magazines while he was editor + the offers were to work as a writer not an editor + he said he will now consider those offers + <unk> <unk> <unk> aviation s.a. said group profit before taxes and contributions to employee <unk> soared N N to N million francs $ N million in the first half of N from N million francs a year earlier + the french aircraft group pointed out however that financial results from its sector of industry are frequently <unk> because of <unk> cash flow from large contracts + it noted for example that group revenue for the first half was N billion francs down about N N from N billion francs a year earlier + still it said it expects sales for all of N to be on the order of N billion francs reflecting anticipated billings for two large contracts in the second half of the year + for all of N dassault had group profit of N million francs on revenue of N billion francs + the group has n't yet released earnings figures for the first half of N nor has it made a detailed forecast of its full-year earnings + <unk> consolidated industries inc. expects to report earnings before extraordinary tax benefits of about $ N million or about N cents a share for the third quarter compared with a loss last year said glenn r. simmons chairman and chief executive officer + after a tax benefit of about $ N <unk> expects to report net income of $ N million or about N cents a share mr. simmons said + for third quarter last year <unk> reported a $ N million loss from continuing operations and a $ N loss from discontinued operations for a net loss of $ N million + revenue for the latest third quarter was about $ N million up N N from $ N million last year he said + mr. simmons said the results signal a turnaround for the maker of wire and wire products which has struggled to remain competitive in the face of <unk> imported steel + a new $ N million steel rod <unk> which got off to a rocky start in early N now is running efficiently and a new management team is more heavily marketing <unk> 's products mr. simmons said + as a result the company hopes to report net income for the year of about $ N million or about $ N to $ N a share compared with a net loss of $ N million last year after a loss from discontinued operations of $ N million + revenue for N is expected to be about $ N million up about N N from $ N million in N + for the nine months ended sept. N <unk> expects to report net income of $ N <unk> or about $ N a share after an extraordinary gain from $ N million in tax benefits + last year the company had a net loss of $ N million including a $ N million loss from continuing operations and a $ N loss from discontinued operations + revenue for the nine months is expected to be about $ N million up about N N from $ N million last year + mr. simmons said <unk> 's new mill is expected to produce about N tons of steel <unk> this year up from N tons in N + production at the mill has exceeded the ability of <unk> 's casting operation to supply it he said which will force <unk> to purchase <unk> or <unk> steel bars from outside the company during the fourth quarter and next year + <unk> will have to consider expanding its casting operation at an estimated cost of $ N million to $ N million within the next N to N months mr. simmons said + under robert w. singer who was named president and chief operating officer last year <unk> has expanded its sales force to about N people from about N and hopes to expand its sales from the middle portion of the country toward the east and west <unk> + prior to a year ago <unk> was an <unk> + now i think we have a group of marketing people who are out selling to retailers and <unk> mr. simmons said + still he said the <unk> company plans to continue its <unk> strategy for its distinctive brand of <unk> wire <unk> and other products + the company claims a N N share of the u.s. field <unk> business a N N share of <unk> <unk> sales and a N N share of <unk> wire sales + freeport-mcmoran inc. said a temporary <unk> of operations at its <unk> bridge <unk> facility in <unk> <unk> will result in slight earnings improvement to both the company and its freeport-mcmoran resource partners limited partnership unit + the company did n't elaborate + the diversified energy and minerals concern said that a depressed <unk> market is responsible for the temporary <unk> of the plant but that the plant can be <unk> quickly when the market improves + more than N pounds of <unk> a year have been produced at the facility during the past seven years + a second <unk> plant at uncle sam <unk> that produces more than N pounds of <unk> annually will continue to operate + freeport-mcmoran said the shutdown wo n't affect sales volumes under long-term sales contracts of its <unk> <unk> recovery co. unit but will reduce the amount of product sold on the spot market + freeport-mcmoran resource partners as owner of the <unk> technology receives royalty payments + business week subscribers may hear this week 's issue talking back to them + a <unk> ad from texas instruments inc. running in approximately N issues of the oct. N corporate elite issue of the mcgraw-hill inc. publication contains a speech <unk> <unk> between two of the pages + readers who pull off a piece of tape and press a switch will hear a tiny but <unk> <unk> voice announce i am the talking chip as it <unk> into a <unk> <unk> on its own attributes + the talking chip is n't cheap the <unk> cost to texas instruments is about $ N and that 's without adding in business week 's charge but texas instruments believes it is a first + previous efforts have included musical ads featuring simple <unk> chips that play a tune but the voice <unk> in this effort is much more sophisticated with none of the <unk> <unk> that one <unk> for example when calling telephone <unk> services + and for those who miss the message the first time around not to worry three tiny <unk> provide enough <unk> for as many as N <unk> + <unk> financial corp. dallas said it will ask a u.s. bankruptcy court to allow it to hire lazard <unk> & co. to help it sell its leasing unit + <unk> <unk> by merrill lynch capital markets has been trying to sell its equitable <unk> leasing co. for several months apparently without success + the real estate and mortgage banking concern had hoped to use proceeds from the sale to reduce its debt + without cash from asset sales and unable to reach a new <unk> agreement <unk> defaulted on $ N million in notes that became due sept. N + it filed for protection from creditors under chapter N of the federal bankruptcy code sept. N to give it additional time to work on a plan to restructure its $ N billion in senior debt + <unk> said merrill lynch which owns bonds and equity in <unk> could n't continue as <unk> 's investment banker because it is also a creditor + it said it chose lazard in part because of lazard 's offices in europe and japan where investors might be interested in a u.s. leasing company + canadian imperial bank of commerce said it will increase its loan-loss provisions to cover all its loans to lesser developed countries except mexico resulting in an after-tax charge to N earnings of N million canadian dollars us$ N million + don <unk> senior vice president and chief <unk> said the bank 's strong earnings enable it to be the first major canadian bank to set aside provisions covering all its c$ N billion in <unk> <unk> debt + it <unk> the continuing uncertainty with respect to the ultimate value of the loans he said + the bank said about c$ N million will be added to its existing <unk> and general loss provisions in its fourth quarter ending oct. N + mr. <unk> said the c$ N million charge to earnings would amount to about c$ N a share + the bank 's net income for the nine months ended july N was c$ N million or c$ N a share + mr. <unk> said the bank will restructure its c$ N million of mexican debt of which c$ N million is in mexican notes secured by u.s. government bonds + the bank has a N N reserve against the remaining c$ N million of mexican debt and expects to swap that for other mexican notes supported by u.s. treasury zero-coupon bonds + mr. <unk> said the bank 's experience with <unk> debt has been painful and this latest move represents the final phase of a program begun seven years ago to reduce its exposure through <unk> debt sales and debt swaps + he said the bank will no longer participate in <unk> <unk> lending but will support trade financing and other transactions that meet the bank 's standards + the <unk> among takeover stocks friday does n't mean the end of <unk> but simply marks the start of a less ambitious game wall street 's big-time deal makers say + suitors from now on are more likely to be <unk> companies rather than raiders or <unk> financiers + and they will be launching <unk> and perhaps fewer deals now that it 's tougher to finance them + this is an <unk> sign for a stock market that lately has been fueled by takeover speculation and bidding wars for companies that put themselves up for sale + whenever the 1980s merger boom seems to be <unk> shock waves <unk> through the stock market + the market is <unk> not cheap says alan <unk> of the new york <unk> firm <unk> <unk> + he recently began increasing his cash position to N N of his portfolio + i look at where deals can get done he says and they 're not getting done at current prices + lenders are growing increasingly nervous about <unk> takeovers investment bankers say + you had a week of a deteriorating junk-bond market that ran <unk> into the news on friday about what appeared to be happening to the bank debt market says steven <unk> a partner and merger specialist with lazard <unk> & co + trading <unk> up friday in the market for high-yield junk bonds often used to finance takeovers + it was the latest in a series of setbacks for the junk bond market where prices began weakening last month after campeau hit a cash crunch + and banks appear to be taking an increasingly skeptical view of requests for high-risk takeover loans + the group trying to buy ual announced friday that it could n't arrange the $ N billion in bank loans it needs to buy the parent of united airlines for $ N a share + takeover-stock traders today will be scrambling to learn of any ual developments and other takeover stocks are likely to trade in <unk> + investment bankers representing the buy-out group and ual 's board spent a <unk> weekend trying to <unk> out new terms that would be more acceptable to the banks + after ual the stock viewed as most vulnerable is american airlines ' parent amr the target of a $ <unk> takeover proposal from new york real estate developer donald trump + trading in amr shares was suspended shortly after N p.m. edt friday and did n't resume + before the halt amr last traded at N N + late friday night the london office of jefferies & co. a los angeles securities firm traded amr shares at prices as low as N + similarly delta air lines and usair group dropped N N and N N respectively on friday and could weaken further + over the <unk> however two developments in other deals indicated that <unk> banks and wall street firms still are willing to commit billions of dollars to finance takeover bids launched by major companies + vitro s.a. a major mexican glass maker said yesterday that it agreed to buy <unk> glass container in a tender offer for $ N a share sweetened from the original $ <unk> offer vitro launched two months ago + on friday <unk> shares fell N N to close at N N + for the broader market the greatest significance of the <unk> deal may be that it was put together late friday night after the market rout and involves a $ N million temporary bridge loan from donaldson lufkin & jenrette securities and a $ N million loan from security pacific national bank + moreover to complete the entire <unk> glass purchase and <unk> existing debt donaldson said it is highly confident that it will be able to sell $ N million of junk bonds for vitro despite the current disarray in the junk bond market + donaldson 's statement is n't merely an idle <unk> because those bonds will have to be sold before donaldson 's bridge loan can be paid back + security pacific meanwhile said it expects to arrange $ N million in bank loans for vitro + in another takeover battle a spokesman for mccaw cellular communications said yesterday that mccaw has been advised by three commercial banks that they remain highly confident they can arrange $ N billion of bank loans for mccaw 's tender offer for about N N of lin broadcasting notwithstanding recent events + mccaw is offering $ N a share for N million lin shares thereby challenging lin 's proposal to spin off its television properties pay shareholders a $ <unk> special dividend and combine its <unk> operations with bellsouth 's cellular business + on friday lin shares were among the few takeover issues that did n't fall much dropping N N or N N to close at N N + traders and investment bankers said lin shares were n't hurt much because bellsouth is viewed as a <unk> corporate buyer unlikely to be affected by <unk> among bankers or bond buyers + investment bankers interviewed over the weekend see a silver <unk> for the merger business in the stock-market drop + potential bidders for companies were saying that things were beginning to look expensive says mr. <unk> of lazard + nothing makes things look cheaper than a <unk> drop in the dow mr. <unk> says + just as there are people waiting to become bargain <unk> in the stock market there are people waiting to become bargain <unk> in the deal market + investment bankers expect most of those bargain <unk> to be <unk> corporations + in the past corporate buyers were often discouraged from making bids because of competition from lbo firms which were often prepared to <unk> the corporations says j. <unk> hill head of mergers and acquisitions at shearson lehman hutton + now corporate buyers should be willing to <unk> the acquisition market because the competition from <unk> buyers has been reduced + many takeover stocks plunged friday as speculators retained their confidence in corporate buyers but fled from the <unk> <unk> stocks the targets of rumored deals + columbia pictures entertainment which has agreed to a friendly $ <unk> bid from sony of japan fell only N to close at N N + but several stocks long rumored to be <unk> for a takeover or restructuring fell N N or more + they include usx down N N upjohn down N N campbell soup down N N paramount communications off N N woolworth down N N delta air lines down N N and mca down N N + the market and investment bankers are even less <unk> about companies that have had at least one bid merger agreement or restructuring plan fall through already + given the weakness in both the junk bond market and the stock market traders fear that these transactions may be revised yet again + examples include <unk> whose agreement to be acquired for $ N a share by <unk> collapsed last month + <unk> shares fell nearly N N on friday to close at N N + ramada which first delayed and then <unk> a $ N million junk bond sale that was designed to help finance a restructuring fell N N to close at N N + ramada has said it hopes to propose a new restructuring plan but has n't indicated when it will do so + shares of american medical international which agreed last week to accept a lower price from a buy-out group that includes first boston corp. and the <unk> family of chicago fell N N on friday to close at N + the buy-out group is offering $ N a share for N million american medical shares down from its offer in july of $ N a share for N million shares + but investment bankers say the market may have <unk> some <unk> stocks + hilton hotels for example was among the <unk> issues falling N N to close at N down N N on friday + hilton currently is soliciting bids for a sale of part or all of its hotel and casino businesses + people familiar with hilton said over the weekend that the <unk> of the sell-off in hilton shares was unwarranted because none of the likely buyers would be dependent on junk-bond financing + however they conceded that some potential bidders would rely on bank loans and would be hurt if the troubles of the ual buy-out group <unk> a general <unk> among banks to provide credit for <unk> takeovers + hilton officials said they were n't worried about the drop in the company 's stock + william <unk> hilton 's general counsel said plans to consider a sale of the company or some of its assets are on track for what has been described previously as a slow and <unk> process + i ca n't believe that any potential buyer for hilton would be affected by one day 's trading mr. <unk> said + but the stock market as a whole bolstered as it is by takeover speculation remains vulnerable to any further <unk> by takeover financiers both in the <unk> market and among commercial banks + for <unk> suitors the takeover game has been over for some time says new york money manager neil <unk> of <unk> capital who has been keeping N N of his portfolio in cash + the market is just <unk> up to that point + <unk> <unk> in los angeles contributed to this column + of all the one-time expenses incurred by a corporation or professional firm few are larger or longer term than the purchase of real estate or the signing of a commercial lease + to take full advantage of the financial opportunities in this commitment however the corporation or professional firm must do more than negotiate the best purchase price or lease terms + it must also evaluate the real-estate market in the chosen location from a new perspective + specifically it must understand how real-estate markets <unk> to shifts in regional economies and then take advantage of these opportunities + when a regional economy <unk> cold the local real-estate market gets <unk> + in other words real-estate market indicators such as building permits and leasing activity plummet much further than a local economy in recession + this was seen in the late 1960s in los angeles and the mid-1970s in new york + but the reverse is also true when a region 's economy <unk> from a slowdown these real-estate indicators will rebound far faster than the improving economy + why do local real-estate markets <unk> to regional economic cycles + because real-estate purchases and leases are such major long-term commitments that most companies and individuals make these decisions only when confident of future economic stability and growth + metropolitan detroit was written off economically during the early 1980s as the domestic auto industry suffered a serious sales depression and adjustment + area employment dropped by N N from its N peak and retail sales were down N N + however the real-estate market was hurt even more + for example residential building permits in the trough year of N were off N N from the N peak level + once metropolitan detroit 's economy rallied in the mid-1980s real estate rebounded + building permits for example soared a staggering N N between N and the peak year of N + where <unk> corporations and professional firms are now asking are today 's opportunities + look no further than metropolitan houston and denver two of the most depressed overbuilt and potentially undervalued real-estate markets in the nation + of course some observers have touted houston and denver for the past five years as a <unk> play + but now appears to be the time to act + metropolitan houston 's economy did drop and then <unk> in the years after its N peak + in the mid-1980s employment was down as much as N N from the N peak and retail sales were off N N + the real-estate market suffered even more severe setbacks + office construction dropped N N + the vacancy rate soared more than N N in nearly every product category and more than N N of office space was vacant + to some observers the empty office buildings of houston 's <unk> <unk> were <unk> of a very troubled economy + as usual the real-estate market had <unk> + actually the region 's economy retained a firm foundation + metropolitan houston 's population has held steady over the past six years + and personal income after <unk> in the mid-1980s has returned to its N level in real dollar terms + today metropolitan houston 's real-estate market is poised for a significant turnaround + more than N jobs were added in <unk> houston last year primarily in biotechnology petrochemical processing and the computer industry + this growth puts houston in the top five <unk> areas in the nation last year + and forecasts project a N N to N N growth rate in jobs over the next few years nearly twice the national average + denver is another metropolitan area where the commercial real-estate market has <unk> to the region 's economic trends although denver has not experienced as severe an economic downturn as houston + by some measures metropolitan denver 's economy has actually improved in the past four years + its population has continued to increase since N the peak year of the economic cycle + employment is now N N higher than in N + buying income in real dollars actually increased N N between N and N the most recent year available + the rates of increase however are less than the rapid growth of the boom years and this has resulted in a loss of confidence in the economy + in a <unk> <unk> therefore the region 's real-estate market all but collapsed in recent years + housing building permits are down more than N N from their N <unk> + although no one can predict when metropolitan denver 's real-estate market will rebound major public works projects costing several billion dollars are under way or planned such as a new convention center a major <unk> <unk> the metropolitan area and a new regional airport + when denver 's regional economy begins to grow faster such a recovery could occur as early as next year business and consumer confidence will return and the resulting explosion of real-estate activity will <unk> the general economic rebound + what real-estate strategy should one follow in a metropolitan area whose economic health is not as easy to determine as houston 's or denver 's + generally overcapacity in commercial real estate is dropping from its mid-1980s peak even in such economically healthy metropolitan areas as washington new york and los angeles + vacancy rates in the N N to N N range today may easily rise to the low to <unk> N range in a couple of years + under these conditions even a <unk> out of economic growth catching cold in the healthy metropolitan areas will create significant opportunities for corporations and professional service firms looking for bargains as the <unk> industry <unk> <unk> + those looking for real-estate bargains in <unk> metropolitan areas should lock in leases or buy now those looking in healthy metropolitan areas should take a short-term three-year lease and wait for the bargains ahead + mr. <unk> is managing partner of a real-estate advisory firm based in beverly hills calif + <unk> industrial corp. said it expects its third-quarter net earnings to be between two cents and four cents a share compared with N cents a share a year ago + analysts had been projecting that the company 's earnings would be between N cents and N cents a share + the year-earlier third-quarter earnings amounted to $ N million + the company said a drop in activity in the <unk> industry reduced sales volume at its two <unk> operations + also the company said its commercial products operation failed to meet forecasts + <unk> a maker of <unk> truck and commercial <unk> equipment said it expects its fourth-quarter earnings to be more closely in line with usual levels which are between N cents and N cents a share + common cause asked both the senate ethics committee and the justice department to investigate $ N million in political gifts by arizona businessman charles keating to five u.s. senators who <unk> with <unk> regulators for him + mr. keating is currently the subject of a $ N billion federal <unk> lawsuit <unk> him of bleeding off assets of a california thrift he controlled lincoln savings & loan association and driving it into <unk> + fred <unk> president of common cause the <unk> citizens lobby said mr. keating already has conceded attempting to buy influence with the lawmakers democratic sens. dennis <unk> of arizona alan cranston of california john glenn of ohio and donald <unk> of michigan and gop sen. john <unk> of arizona + mr. <unk> based this on a statement by mr. keating that was quoted in a wall street journal story in april one question had to do with whether my financial support in any way influenced several political figures to take up my cause + i want to say in the most <unk> way i can i certainly hope so + in a highly unusual meeting in sen. <unk> 's office in april N the five senators asked federal regulators to ease up on lincoln + according to notes taken by one of the participants at the meeting the regulators said lincoln was gambling <unk> with <unk> ' federally insured money and was a <unk> time bomb + mr. keating had complained that the regulators were being too <unk> + the notes show that sen. <unk> called the federal home loan bank board 's regulations grossly unfair and that sen. glenn insisted that mr. keating 's thrift was viable and profitable + for the next two years the bank board which at the time was the agency responsible for <unk> thrifts failed to act even after federal auditors warned in may N that mr. keating had caused lincoln to become insolvent + lincoln 's parent company american continental corp. entered bankruptcy-law proceedings this april N and regulators seized the thrift the next day + the newly formed resolution trust corp. successor to the bank board filed suit against mr. keating and several others on sept. N + mr. keating has filed his own suit alleging that his property was taken illegally + the cost to taxpayers of lincoln 's collapse has been estimated at as much as $ N billion + details of the affair have become public gradually over the past two years mostly as a result of reporting by several newspapers + in the midst of his N re-election campaign sen. <unk> chairman of the senate banking committee returned $ N in contributions after a detroit newspaper said that mr. keating had gathered the money for him about two weeks before the meeting with regulators + sen. <unk> after months of <unk> off intense press criticism returned $ N only last month shortly after the government formally accused mr. keating of <unk> lincoln + in addition sen. <unk> last week disclosed that he <unk> had paid $ N to american continental as <unk> for trips he and his family took aboard the corporate jet to mr. keating 's vacation home at cat <unk> the <unk> from N through N + sen. <unk> said he had meant to pay for the trips at the time but that the matter fell between the cracks + mr. keating his family members and associates also donated $ N to sen. <unk> 's congressional campaigns over the years according to press accounts + but sen. <unk> says mr. keating broke off their friendship abruptly in N because the senator refused to press the thrift executive 's case as vigorously as mr. keating wanted + he became very angry at that left my office and told a number of people that i was a <unk> sen. <unk> recalls + in july california newspapers disclosed that mr. keating gave $ N in corporate funds to three tax-exempt voter registration organizations in N and N at the <unk> of sen. cranston who conceded that soliciting the money was a pretty stupid thing to do politically + in addition sen. cranston received $ N in campaign donations through mr. keating and the california democratic party received $ N in corporate donations for a N <unk> drive that benefited the senator 's re-election campaign that year + also in july ohio newspapers disclosed $ N in corporate donations by mr. keating to the national council on public policy a political committee controlled by sen. glenn + that was in addition to $ N in direct campaign donations arranged by mr. keating to the ohio senator + mr. <unk> said the senate ethics committee should hire a special outside counsel to conduct an investigation as was done in the case of former house speaker james wright + wilson <unk> staff director of the ethics panel would n't comment + sen. <unk> said he would cooperate with any inquiry but that his conduct had been entirely proper + sen. <unk> said he had been deeply concerned at the time of the meeting that it might seem to be improper but decided it was entirely appropriate for him to seek fair treatment for a <unk> + sen. glenn said he had already made a complete disclosure of his role in the affair and i am completely satisfied to let this matter rest in the hands of the senate ethics committee + sen. <unk> said when all is said and done i expect to be fully <unk> + sen. cranston who had already <unk> his help to the federal bureau of investigation in any investigation of mr. keating portrayed his role in N as <unk> regulators to act + why did n't the bank board act sooner he said + that is what common cause should ask be investigated + trinity industries inc. said it reached a preliminary agreement to manufacture N coal rail cars for norfolk southern corp + trinity estimated the value of the pact at more than $ N million + trinity said it plans to begin delivery of the rail cars in the first quarter of N + it said the N rail cars are in addition to the N coal rail cars <unk> being produced for norfolk southern a norfolk <unk> railroad concern + when china opened its doors to foreign investors in N toy makers from hong kong were among the first to march in + today with about N N of the companies ' products being made in china the chairman of the hong kong toys council dennis <unk> has suggested a new <unk> label made in china by hong kong companies + the toy makers were pushed across the border by rising labor and land costs in the british colony + but in the wake of the <unk> in beijing on june N the hong kong toy industry is worrying about its strong <unk> on china + although the manufacturers stress that production has n't been affected by china 's political turmoil they are looking for additional sites + the toy makers and their foreign buyers cite uncertainty about china 's economic and political policies + nobody wants to have all his eggs in one basket says david <unk> chairman and chief executive officer of international <unk> group ltd + indeed <unk> and other leading hong kong toy makers were setting up factories in southeast asia especially in thailand long before the massacre + their steps were partly prompted by concern over a deterioration of business conditions in southern china + by diversifying supply sources the toy makers do n't intend to withdraw from china manufacturers and foreign buyers say + it would n't be easy to <unk> quickly the manufacturing capacity built up in southern china during the past decade + a supply of cheap labor and the access to hong kong 's port airport banks and support industries such as printing companies have made china 's <unk> province a premier manufacturing site + south china is the most competitive source of toys in the world says henry <unk> executive director of <unk> <unk> toys consolidated ltd + hong kong trade figures illustrate the toy makers ' reliance on factories across the border + in N exports of domestically produced toys and games fell N N from N to hk$ N billion us$ N billion + but <unk> mainly from china jumped N N to hk$ N billion + in N 's first seven months domestic exports fell N N to hk$ N billion while <unk> rose N N to hk$ N billion + manufacturers say there is no immediate substitute for southern china where an estimated N people are employed by the toy industry + for the next few years like it or not china is going to be the main supplier says <unk> young vice president of <unk> enterprises ltd. one of the first big hong kong toy makers to move across the border + in the meantime as manufacturers and buyers seek new sites they are focusing mainly on southeast asia + several big companies have established manufacturing joint ventures in thailand including <unk> <unk> <unk> and <unk> industrial co. the toy manufacturer headed by mr. <unk> + malaysia the philippines and indonesia also are being studied + with the european community set to remove its internal trade barriers in N several hong kong companies are beginning to consider spain portugal and greece as possible manufacturing sites + worries about china came just as hong kong 's toy industry was recovering from a N sales slump and bankruptcy filings by two major u.s. companies <unk> of wonder inc. and <unk> industries inc + hong kong manufacturers say large debt <unk> and other financial problems resulting from the N difficulties <unk> the local industry causing it to tighten credit policies and financial management + the industry <unk> last year and this year as a period of recovery that will lead to improved results + still they long for a <unk> toy to <unk> retail sales in the u.s. hong kong 's biggest market for toys and games + the <unk> thing the colony 's companies have to a u.s. <unk> this year is the <unk> <unk> <unk> <unk> series of action figures manufactured by <unk> holdings ltd + introduced in <unk> the <unk> plastic <unk> are based on an american comic book and television series + paul <unk> managing director of <unk> says N million <unk> <unk> have been sold placing the <unk> <unk> among the N <unk> toys in the u.s. + should sales continue to be strong through the christmas season which accounts for about N N of u.s. retail toy sales mr. <unk> said the <unk> <unk> could make N a record sales year for <unk> + other hong kong manufacturers expect their results to improve only slightly this year from N + besides the lack of a <unk> product they cite the continued dominance of the u.s. market by <unk> entertainment system an expensive video game made by <unk> co. of japan + <unk> buyers have little money left to spend on other products + many of the toy makers ' problems started well before june N as a result of <unk> infrastructure and beijing 's <unk> programs launched late last year + toy makers complain that electricity in <unk> has been provided only three days a week in recent months down from five days a week as the province 's rapid <unk> has <unk> its generating capacity + manufacturers are upgrading <unk> power plants + bank credit for china investments all but <unk> up following june N + also concern exists that the <unk> beijing leadership will tighten its control of <unk> which has been the main laboratory for the <unk> policy and economic reforms + but toy manufacturers and other <unk> say beijing will be <unk> from tightening controls on <unk> southern china + they say china 's trade deficit is widening and the country is too short of foreign exchange for it to <unk> production in <unk> + the chinese leaders have to decide whether they want control or whether the want exports says mr. <unk> of <unk> + the bush administration urging the supreme court to give states more <unk> to restrict abortions said <unk> have n't any right to abortion without the consent of their parents + <unk> general kenneth <unk> argued that the N supreme court decision roe vs. wade recognizing a constitutional right to abortion was incorrect + he also argued that the high court was wrong in N to rule that <unk> have a right to abortion that ca n't be absolutely vetoed by their parents + the administration 's position was outlined in a <unk> brief filed in one of three abortion cases the supreme court will hear argued and will decide this term + the administration filed the brief in an appeal involving a minnesota law that requires that both parents of a minor be notified before she may have an abortion + the administration urged the justices to adopt a legal standard suggested by chief justice william <unk> last july when the high court upheld missouri 's abortion restrictions + under that standard which <unk> the votes of only three of the nine justices a state restriction of abortion is constitutional if the state has a reasonable <unk> for adopting it + that is a much easier standard for a state to satisfy than the supreme court 's test since N which requires a state to have a compelling reason for restricting abortion + on the provisions of the minnesota law the bush administration said that requiring that both parents be notified is a reasonable regulation and that there is no need to have an alternative that allows <unk> to go to court for a judge 's permission instead + the case <unk> vs. minnesota will be argued nov. N + aluminum co. of america hit hard by the strength of the dollar overseas said net income for the third quarter dropped N N to $ N million or $ N a share + the nation 's no. N aluminum maker earned $ N million or $ N a share a year earlier + revenue rose N N to $ N billion from $ N billion + analysts who were expecting <unk> to post around $ N to $ N a share were surprised at the lackluster third-quarter results + it 's disappointing said william <unk> an analyst with smith barney harris upham & co + much of the earnings decline was led by <unk> rate adjustments which affected the bottom line by $ N million or N cents a share compared with $ N million or four cents a share the previous year + lower prices for aluminum <unk> and certain <unk> products and a shift in the product mix also contributed to lower earnings the company said + in addition costs were higher partly due to scheduled plant <unk> for modernization work the company said + excluding the higher tax rate which rose two percentage points to N N and the negative exchange rate adjustment the company would have met analysts ' expectations said r. wayne <unk> an analyst with goldman sachs & co + noting that the third quarter is usually the aluminum industry 's <unk> mr. <unk> added the third quarter is never a bang up period for them anyway + nevertheless the company said shipments were up slightly to N metric tons from N <unk> the impact of the unexpected earning decline + the results were announced after the stock market closed + in new york stock exchange composite trading friday <unk> closed at $ N a share down $ N in a sharply lower market + for N years federal rules have barred the three major television networks from sharing in one of the most lucrative and fastest-growing parts of the television business + and for six years nbc abc and cbs have negotiated with hollywood studios in a <unk> attempt to change that + but with foreign companies <unk> up u.s. movie studios the networks are pressing their fight harder than ever + they hope the foreign deals will divide the hollywood opposition and <unk> congress to push for ending federal rules that prohibit the networks from <unk> a piece of <unk> sales and owning part of the shows they put on the air + even network executives however admit privately that victory either in congress or in talks with the studios is highly doubtful any time soon + and so the networks also are pushing for new ways to <unk> the <unk> provisions known formally as the financial interest and <unk> rules + that became clear last week with the disclosure that national broadcasting co. backed by the deep pockets of parent general electric co. had tried to help fund qintex australia ltd. 's <unk> $ N billion bid for mgm\/ua communications co + nbc 's interest may revive the deal which mgm\/ua killed last week when the australian concern had trouble raising cash + even if that deal is n't revived nbc hopes to find another + our doors are open an nbc spokesman says + nbc may yet find a way to take a passive minority interest in a <unk> without violating the rules + and any nbc effort could prompt cbs inc. and abc 's parent capital cities\/abc inc. to look for ways of <unk> the <unk> regulations + but the networks ' push may only <unk> an increasingly bitter <unk> between them and hollywood studios + both sides are to sit down next month for yet another meeting on how they might agree on reducing <unk> restraints + few people <unk> to the talks expect the studios to <unk> + the networks still are <unk> in their authority over what shows get on the air charges motion picture association president jack <unk> the most <unk> opponent of <unk> the rules + studios are <unk> to get shows in prime-time <unk> and keep them there long enough to go into lucrative <unk> sales he contends + and that 's why the rules for the most part must stay in place he says + studio executives in on the talks including officials at paramount communications inc. <unk> entertainment inc. warner communications inc. and mca inc. declined to be interviewed + but mr. <unk> who represents the studios asserts the whole production industry to a man is on the side of preserving the rules + such <unk> leave network officials all the more doubtful that the studios will <unk> + they do n't seem to have an incentive to negotiate says one network executive + and there 's no indication that washington is prepared to address the rules + that 's the problem is n't it + indeed it is + congress has said repeatedly it wants no part of the mess urging the studios and the networks which license rights to air shows made by the studios to work out their own compromise + but recent developments have made the networks and nbc president robert wright in particular ever more <unk> that the networks must be <unk> to survive + the latest <unk> sony corp. 's plan to acquire columbia pictures entertainment inc. for $ N billion and to buy independent producer guber peters entertainment co. for $ N million + i wonder what walter <unk> will think of the <unk> broadcast system <unk> evening news with dan rather broadcast exclusively from tokyo wrote <unk> <unk> an nbc vice president in a commentary in last week 's issue of broadcasting magazine + in his article mr. <unk> who was in europe last week and unavailable complained that the <unk> restraints in <unk> rules have contributed directly to the acquisition of the studios by non-u.s. enterprises + he did n't mention that nbc in the meantime was hoping to assist australia 's qintex in buying + an nbc spokesman <unk> that mr. <unk> 's <unk> was entirely consistent with nbc plans because the u.s. rules would limit nbc 's involvement in the qintex deal so severely as to be light years away from the type of <unk> deals available to sony and everyone else except the three networks + the big three 's <unk> for deregulation began <unk> in the summer when the former time inc. went ahead with plans to acquire warner + although time already had a long-term contract to buy movies from warner the merger will let time 's largely <unk> <unk> channel home box office own the warner movies aired on hbo a <unk> integration that is effectively blocked by <unk> regulations + nbc 's mr. wright led the way in <unk> the networks ' inability to match a <unk> combination + he spoke up again when the sony bid for columbia was announced + since nbc 's interest in the qintex bid for mgm\/ua was disclosed mr. wright has n't been available for comment + with a qintex deal nbc would move into <unk> territory possibly raising <unk> at the studios and in washington + it 's never really been tested says william <unk> iii who as a top cbs executive spent years lobbying to have the rules lifted + he now runs policy communications in washington consulting to media companies + <unk> rules do n't <unk> block a network from buying a passive small stake in a company that profits from the <unk> <unk> networks ca n't enjoy + hence nbc might be able to take say a N N stake in a company such as mgm\/ua + if the transaction raised objections the studio 's <unk> operations could be spun off into a separate firm in which the network does n't have a direct stake + but such <unk> would still block the networks from <unk> a big chunk of the <unk> of <unk> + under current rules even when a network fares well with a <unk> series abc for example made a killing in broadcasting its popular <unk> <unk> it is n't allowed to share in the continuing proceeds when the reruns are sold to local stations + instead abc will have to sell off the rights for a one-time fee + the networks admit that the chances of getting the relief they want are slim for several years at the least + six years ago they were <unk> close + the <unk> federal communications commission had ruled in favor of killing most of the rules + various evidence including a <unk> institution study of some N series that the networks had aired and had partly owned in the 1960s showed the networks did n't <unk> <unk> control over the studios as had been alleged + but just eight days before the rules were to die former president ronald reagan a one-time actor intervened on behalf of hollywood + the fcc effort collapsed + the networks and studios have <unk> ever since + network officials involved in the studio talks may hope the foreign influx builds more support in washington but that seems unlikely + in congress the issue <unk> it 's about money not program quality and hollywood has lots of clout given its fund raising for senators and representatives overseeing the issue + a spokesman for rep. edward j. markey <unk> who heads a subcommittee that oversees the fcc says mr. markey feels the world has been forever changed by the <unk> deal + but he said mr. markey hopes this <unk> the networks and studios to work it out on their own + and at the fcc meanwhile new chairman alfred c. <unk> has said he wants the two sides to <unk> out their own plan + recognition equipment inc. said it settled a civil action filed against it by the federal government on behalf of the u.s. postal service + the government sued the company in april seeking $ N and other unspecified damages related to an alleged <unk> scheme + the suit named the company former chief executive officer william g. moore jr. former vice president robert w. <unk> and five defendants who were n't part of the company + the suit charged the defendants with causing peter e. <unk> an <unk> of the postal service board of governors to accept $ N in <unk> <unk> and <unk> + mr. <unk> was previously sentenced to four years in prison and fined $ N for his role in the scheme + in the agreement recognition agreed to pay the government $ N in return for the release of all claims against the company mr. moore and mr. <unk> + the five additional defendants were n't parties to the settlement + a trial on criminal allegations against the company and the same two former executives began sept. N in federal court for the district of columbia + they were indicted last october on charges of fraud theft and conspiracy related to an effort to win $ N million in postal service equipment contracts by the maker of data management equipment + the company and its executives deny the charges + in a related development recognition equipment said the postal service has barred the company from bidding on postal contracts for an additional N days + the postal service originally suspended the company oct. N N and has been renewing the ban ever since + the company said it will continue to pursue a lifting of the suspension + intel corp. reported a N N drop in third-quarter net income partly because of a one-time charge for discontinued operations + the big semiconductor and computer maker said it had net of $ N million or N cents down N N from $ N million or N cents a share + the lower net included a charge of $ N million equal to N cents a share on an after-tax basis for the cost of abandoning a <unk> joint venture with siemens ag of west germany + earning also fell from the year-ago period because of slowing <unk> demand + sales amounted to $ N million down N N from $ N million + intel 's stock rose in early over-the-counter trading friday as investors appeared relieved that the company 's income from continuing operations was only slightly below the second quarter 's earnings of $ N million or N cents a share and that sales actually exceeded the $ N million for the second period + but intel later <unk> to the stock market 's plunge closing at $ N down $ N + in august intel warned that third-quarter earnings might be flat to down from the previous period 's because of slowing sales growth of its N microprocessor start-up costs associated with a line of computers and costs of preparing for mass shipments of the company 's new N chip in the current quarter + on friday andrew <unk> intel president and chief executive officer said intel 's business is strong + our bookings improved as the quarter <unk> and september was especially good + for the full quarter our bookings were higher than the previous quarter and our <unk> ratio exceeded N + for the nine-month period intel reported net of $ N million or $ N a share down N N from $ N million or $ N a share + revenue amounted to $ N billion up slightly from $ N billion + walter sisulu and the african national congress came home yesterday + after N years in prison mr. sisulu the <unk> former <unk> of the liberation movement was dropped off at his house by a prison services ' van just as the sun was coming up + at the same time six anc colleagues five of whom were arrested with him in N and sentenced to life <unk> were <unk> with their families at various places around the country + and as the <unk> men returned to their homes the anc outlawed in south africa since N and still considered to be the chief public enemy by the white government <unk> returned to the streets of the country 's black <unk> + a huge anc flag with black green and gold <unk> was <unk> over the <unk> gate at mr. sisulu 's modest house while on the street out front boys displayed the anc colors on their shirts <unk> and <unk> + at the small <unk> home of <unk> <unk> a leading anc <unk> and a former <unk> in the group 's armed <unk> <unk> we <unk> <unk> stuck little anc flags in their hair and a man <unk> on an <unk> horn <unk> in anc <unk> + i am happy to see the spirit of the people said mr. sisulu looking <unk> in a new gray suit + as the crowd outside his home shouted anc anc the old man shot his <unk> into the air + i 'm inspired by the mood of the people + under the laws of the land the anc remains an illegal organization and its headquarters are still in <unk> <unk> + but the <unk> release of the seven leaders who once formed the intellectual and <unk> core of the anc is a de <unk> <unk> of the movement and the <unk> of its internal <unk> + the government can never put the anc back into the bottle again said <unk> <unk> a veteran <unk> activist on hand to welcome mr. sisulu + things have gone too far for the government to stop them now + there 's no turning back + there was certainly no <unk> the tide of anc <unk> last night when hundreds of people <unk> into the <unk> cross <unk> church in <unk> for what became the first anc rally in the country in N years + <unk> <unk> of anc and <unk> we <unk> shook the church as the seven aging men vowed that the anc would continue its fight against the government and the policies of racial <unk> on all fronts including the armed struggle + and they called on the government to release nelson <unk> the anc 's leading figure who was jailed with them and remains in prison + without him said mr. sisulu the <unk> of the others is only a <unk> + president <unk> de <unk> released the anc men along with one of the founding members of the pan <unk> congress a rival liberation group as part of his efforts to create a climate of trust and peace in which his government can begin negotiations with black leaders over a new constitution aimed at giving blacks a voice in national government + but pretoria may instead be creating a climate for more turmoil and uncertainty in this <unk> divided country + as other <unk> governments particularly poland and the soviet union have recently discovered initial steps to open up society can create a momentum for radical change that becomes difficult if not impossible to control + as the days go by the south african government will be ever more hard pressed to justify the continued <unk> of mr. <unk> as well as the continued banning of the anc and enforcement of the state of emergency + if it does n't yield on these matters and eventually begin talking directly to the anc the expectations and promise raised by yesterday 's releases will turn to <unk> and unrest + if it does the large number of <unk> whites who oppose any concessions to the black majority will step up their <unk> and threats to take matters into their own hands + the newly released anc leaders also will be under enormous pressure + the government is watching closely to see if their presence in the <unk> leads to increased <unk> protests and violence if it does pretoria will use this as a reason to keep mr. <unk> behind bars + pretoria has n't forgotten why they were all sentenced to life <unk> in the first place for sabotage and conspiracy to <unk> the government + in addition the government is figuring that the releases could create a split between the internal and external wings of the anc and between the newly freed leaders and those activists who have emerged as leaders inside the country during their <unk> + in order to head off any divisions mr. <unk> in a meeting with his colleagues before they were released instructed them to report to the anc headquarters in <unk> as soon as possible + the men also will be faced with <unk> the generation gap between themselves and the country 's many <unk> black <unk> the so-called young <unk> who are anxious to see the old <unk> in action + says peter <unk> president of the south african youth congress we will be expecting them to act like leaders of the anc + they never considered themselves to be anything else + at last night 's rally they called on their <unk> to be firm yet disciplined in their opposition to apartheid + we <unk> discipline because we know that the government is very very sensitive said andrew <unk> another early <unk> leader who is now N + we want to see nelson <unk> and all our <unk> out of prison and if we are n't disciplined we may not see them here with us diff --git a/nerv/examples/lmptb/PTBdata/ptb.train.txt b/nerv/examples/lmptb/PTBdata/ptb.train.txt new file mode 100644 index 0000000..04d78dc --- /dev/null +++ b/nerv/examples/lmptb/PTBdata/ptb.train.txt @@ -0,0 +1,42068 @@ + aer banknote berlitz calloway centrust cluett fromstein gitano guterman hydro-quebec ipo kia memotec mlx nahb punts rake regatta rubens sim snack-food ssangyong swapo wachter + pierre <unk> N years old will join the board as a nonexecutive director nov. N + mr. <unk> is chairman of <unk> n.v. the dutch publishing group + rudolph <unk> N years old and former chairman of consolidated gold fields plc was named a nonexecutive director of this british industrial conglomerate + a form of asbestos once used to make kent cigarette filters has caused a high percentage of cancer deaths among a group of workers exposed to it more than N years ago researchers reported + the asbestos fiber <unk> is unusually <unk> once it enters the <unk> with even brief exposures to it causing symptoms that show up decades later researchers said + <unk> inc. the unit of new york-based <unk> corp. that makes kent cigarettes stopped using <unk> in its <unk> cigarette filters in N + although preliminary findings were reported more than a year ago the latest results appear in today 's new england journal of medicine a forum likely to bring new attention to the problem + a <unk> <unk> said this is an old story + we 're talking about years ago before anyone heard of asbestos having any questionable properties + there is no asbestos in our products now + neither <unk> nor the researchers who studied the workers were aware of any research on smokers of the kent cigarettes + we have no useful information on whether users are at risk said james a. <unk> of boston 's <unk> cancer institute + dr. <unk> led a team of researchers from the national cancer institute and the medical schools of harvard university and boston university + the <unk> spokeswoman said asbestos was used in very modest amounts in making paper for the filters in the early 1950s and replaced with a different type of <unk> in N + from N to N N billion kent cigarettes with the filters were sold the company said + among N men who worked closely with the substance N have died more than three times the expected number + four of the five surviving workers have <unk> diseases including three with recently <unk> cancer + the total of N deaths from malignant <unk> lung cancer and <unk> was far higher than expected the researchers said + the <unk> rate is a striking finding among those of us who study <unk> diseases said dr. <unk> + the percentage of lung cancer deaths among the workers at the west <unk> mass. paper factory appears to be the highest for any asbestos workers studied in western industrialized countries he said + the plant which is owned by <unk> & <unk> co. was under contract with <unk> to make the cigarette filters + the finding probably will support those who argue that the u.s. should regulate the class of asbestos including <unk> more <unk> than the common kind of asbestos <unk> found in most schools and other buildings dr. <unk> said + the u.s. is one of the few industrialized nations that does n't have a higher standard of regulation for the smooth <unk> fibers such as <unk> that are classified as <unk> according to <unk> t. <unk> a professor of <unk> at the university of vermont college of medicine + more common <unk> fibers are <unk> and are more easily rejected by the body dr. <unk> explained + in july the environmental protection agency imposed a gradual ban on virtually all uses of asbestos + by N almost all remaining uses of <unk> asbestos will be outlawed + about N workers at a factory that made paper for the kent filters were exposed to asbestos in the 1950s + areas of the factory were particularly dusty where the <unk> was used + workers dumped large <unk> <unk> of the imported material into a huge <unk> poured in cotton and <unk> fibers and <unk> mixed the dry fibers in a process used to make filters + workers described clouds of blue dust that hung over parts of the factory even though <unk> fans <unk> the area + there 's no question that some of those workers and managers contracted <unk> diseases said <unk> phillips vice president of human resources for <unk> & <unk> + but you have to recognize that these events took place N years ago + it has no bearing on our work force today + yields on money-market mutual funds continued to slide amid signs that portfolio managers expect further declines in interest rates + the average seven-day compound yield of the N taxable funds tracked by <unk> 's money fund report eased a fraction of a percentage point to N N from N N for the week ended tuesday + compound yields assume reinvestment of dividends and that the current yield continues for a year + average maturity of the funds ' investments <unk> by a day to N days the longest since early august according to donoghue 's + longer maturities are thought to indicate declining interest rates because they permit portfolio managers to retain relatively higher rates for a longer period + shorter maturities are considered a sign of rising rates because portfolio managers can capture higher rates sooner + the average maturity for funds open only to institutions considered by some to be a stronger indicator because those managers watch the market closely reached a high point for the year N days + nevertheless said <unk> <unk> <unk> editor of money fund report yields may <unk> up again before they <unk> down because of recent rises in short-term interest rates + the yield on six-month treasury bills sold at monday 's auction for example rose to N N from N N + despite recent declines in yields investors continue to pour cash into money funds + assets of the N taxable funds grew by $ N billion during the latest week to $ N billion + typically money-fund yields beat comparable short-term investments because portfolio managers can vary maturities and go after the highest rates + the top money funds are currently yielding well over N N + dreyfus world-wide dollar the <unk> fund had a seven-day compound yield of N N during the latest week down from N N a week earlier + it invests heavily in dollar-denominated securities overseas and is currently <unk> management fees which boosts its yield + the average seven-day simple yield of the N funds was N N down from N N + the 30-day simple yield fell to an average N N from N N the 30-day compound yield slid to an average N N from N N + j.p. <unk> vice chairman of <unk> grace & co. which holds a N N interest in this <unk> company was elected a director + he succeeds <unk> d. <unk> formerly a <unk> grace vice chairman who resigned + <unk> grace holds three of grace energy 's seven board seats + pacific first financial corp. said shareholders approved its acquisition by royal <unk> ltd. of toronto for $ N a share or $ N million + the thrift holding company said it expects to obtain regulatory approval and complete the transaction by year-end + <unk> international inc. said its <unk> & <unk> unit completed the sale of its <unk> controls operations to <unk> s.p a. for $ N million + <unk> is an italian state-owned holding company with interests in the mechanical engineering industry + <unk> controls based in <unk> ohio makes computerized industrial controls systems + it employs N people and has annual revenue of about $ N million + the federal government suspended sales of u.s. savings bonds because congress has n't lifted the ceiling on government debt + until congress acts the government has n't any authority to issue new debt obligations of any kind the treasury said + the government 's borrowing authority dropped at midnight tuesday to $ N trillion from $ N trillion + legislation to lift the debt ceiling is <unk> in the fight over cutting capital-gains taxes + the house has voted to raise the ceiling to $ N trillion but the senate is n't expected to act until next week at the earliest + the treasury said the u.s. will default on nov. N if congress does n't act by then + clark j. <unk> was named senior vice president and general manager of this u.s. sales and marketing arm of japanese auto maker mazda motor corp + in the new position he will oversee mazda 's u.s. sales service parts and marketing operations + previously mr. <unk> N years old was general marketing manager of chrysler corp. 's chrysler division + he had been a sales and marketing executive with chrysler for N years + when it 's time for their <unk> <unk> the nation 's manufacturing <unk> typically jet off to the <unk> <unk> of resort towns like <unk> <unk> and hot springs + not this year + the national association of manufacturers settled on the <unk> capital of indianapolis for its fall board meeting + and the city decided to treat its guests more like royalty or rock stars than factory owners + the idea of course to prove to N corporate decision makers that the buckle on the <unk> belt is n't so <unk> after all that it 's a good place for a company to expand + on the receiving end of the message were officials from giants like du pont and <unk> along with lesser <unk> like <unk> steel and the valley queen <unk> factory + for <unk> the executives joined mayor william h. <unk> iii for an evening of the indianapolis <unk> <unk> and a guest <unk> victor <unk> + champagne and <unk> followed + the next morning with a police <unk> <unk> of executives and their wives <unk> to the indianapolis motor <unk> <unk> by traffic or red lights + the governor could n't make it so the <unk> governor welcomed the special guests + a buffet breakfast was held in the museum where food and drinks are banned to everyday visitors + then in the guests ' honor the <unk> <unk> out four drivers crews and even the official indianapolis N announcer for a <unk> exhibition race + after the race fortune N executives <unk> like <unk> over the cars and drivers + no <unk> the drivers pointed out they still had space on their machines for another sponsor 's name or two + back downtown the <unk> squeezed in a few meetings at the hotel before <unk> the buses again + this time it was for dinner and <unk> a block away + under the stars and <unk> of the <unk> indiana <unk> <unk> nine of the hottest chefs in town fed them indiana <unk> <unk> <unk> <unk> <unk> <unk> and <unk> <unk> with a <unk> <unk> + knowing a <unk> and free <unk> when they eat one the executives gave the chefs a standing <unk> + more than a few <unk> say the <unk> treatment <unk> them to return to a <unk> city for future meetings + but for now they 're looking forward to their winter meeting <unk> in february + south korea registered a trade deficit of $ N million in october reflecting the country 's economic <unk> according to government figures released wednesday + preliminary <unk> by the trade and industry ministry showed another trade deficit in october the fifth monthly setback this year casting a cloud on south korea 's <unk> economy + exports in october stood at $ N billion a mere N N increase from a year earlier while imports increased sharply to $ N billion up N N from last october + south korea 's economic boom which began in N stopped this year because of prolonged labor disputes trade conflicts and sluggish exports + government officials said exports at the end of the year would remain under a government target of $ N billion + despite the gloomy forecast south korea has recorded a trade surplus of $ N million so far this year + from january to october the nation 's accumulated exports increased N N from the same period last year to $ N billion + imports were at $ N billion up N N + newsweek trying to keep pace with rival time magazine announced new advertising rates for N and said it will introduce a new incentive plan for advertisers + the new ad plan from newsweek a unit of the washington post co. is the second incentive plan the magazine has offered advertisers in three years + plans that give advertisers discounts for maintaining or increasing ad spending have become permanent <unk> at the news <unk> and underscore the fierce competition between newsweek time warner inc. 's time magazine and <unk> b. <unk> 's u.s. news & world report + alan <unk> recently named newsweek president said newsweek 's ad rates would increase N N in january + a full <unk> page in newsweek will cost $ N + in mid-october time magazine lowered its guaranteed circulation rate base for N while not increasing ad page rates with a lower circulation base time 's ad rate will be effectively N N higher per subscriber a full page in time costs about $ N + u.s. news has yet to announce its N ad rates + newsweek said it will introduce the circulation credit plan which <unk> space credits to advertisers on renewal advertising + the magazine will reward with page bonuses advertisers who in N meet or exceed their N spending as long as they spent $ N in N and $ N in N + mr. <unk> said the plan is not an attempt to shore up a decline in ad pages in the first nine months of N newsweek 's ad pages totaled N a drop of N N from last year according to publishers information bureau + what matters is what advertisers are paying per page and in that department we are doing fine this fall said mr. <unk> + both newsweek and u.s. news have been gaining circulation in recent years without heavy use of electronic <unk> to subscribers such as telephones or watches + however none of the big three <unk> recorded circulation gains recently + according to audit bureau of <unk> time the largest <unk> had average circulation of N a decrease of N N + newsweek 's circulation for the first six months of N was N flat from the same period last year + u.s. news ' circulation in the same time was N down N N + new england electric system bowed out of the bidding for public service co. of new hampshire saying that the risks were too high and the potential <unk> too far in the future to justify a higher offer + the move leaves united illuminating co. and northeast utilities as the remaining outside bidders for ps of new hampshire which also has proposed an internal reorganization plan in chapter N bankruptcy proceedings under which it would remain an independent company + new england electric based in <unk> mass. had offered $ N billion to acquire ps of new hampshire well below the $ N billion value united illuminating places on its bid and the $ N billion northeast says its bid is worth + united illuminating is based in new haven conn. and northeast is based in hartford conn + ps of new hampshire <unk> n.h. values its internal reorganization plan at about $ N billion + john rowe president and chief executive officer of new england electric said the company 's return on equity could suffer if it made a higher bid and its forecasts related to ps of new hampshire such as growth in electricity demand and improved operating <unk> did n't come true + when we <unk> raising our bid the risks seemed substantial and persistent over the next five years and the rewards seemed a long way out + that got hard to take he added + mr. rowe also noted that political concerns also worried new england electric + no matter who owns ps of new hampshire after it emerges from bankruptcy proceedings its rates will be among the highest in the nation he said + that attracts attention + it was just another one of the risk factors that led to the company 's decision to withdraw from the bidding he added + wilbur ross jr. of rothschild inc. the financial adviser to the troubled company 's equity holders said the withdrawal of new england electric might speed up the reorganization process + the fact that new england proposed lower rate increases N N over seven years against around N N boosts proposed by the other two outside bidders complicated negotiations with state officials mr. ross asserted + now the field is less <unk> he added + separately the federal energy regulatory commission turned down for now a request by northeast seeking approval of its possible purchase of ps of new hampshire + northeast said it would <unk> its request and still hopes for an <unk> review by the ferc so that it could complete the purchase by next summer if its bid is the one approved by the bankruptcy court + ps of new hampshire shares closed yesterday at $ N off N cents in new york stock exchange composite trading + norman <unk> N years old and former president and chief operating officer of toys r us inc. and frederick <unk> jr. N chairman of <unk> banking corp. were elected directors of this consumer electronics and appliances retailing chain + they succeed daniel m. <unk> retired circuit city executive vice president and robert r. <unk> u.s. treasury undersecretary on the <unk> board + commonwealth edison co. was ordered to refund about $ N million to its current and former <unk> for illegal rates collected for cost overruns on a nuclear power plant + the refund was about $ N million more than previously ordered by the illinois commerce commission and trade groups said it may be the largest ever required of a state or local utility + state court judge richard curry ordered edison to make average refunds of about $ N to $ N each to edison customers who have received electric service since april N including about two million customers who have moved during that period + judge curry ordered the refunds to begin feb. N and said that he would n't <unk> any appeals or other attempts to block his order by commonwealth edison + the refund pool may not be held <unk> through another round of appeals judge curry said + commonwealth edison said it is already appealing the underlying commission order and is considering appealing judge curry 's order + the exact amount of the refund will be determined next year based on actual <unk> made until dec. N of this year + commonwealth edison said the ruling could force it to slash its N earnings by $ N a share + for N commonwealth edison reported earnings of $ N million or $ N a share + a commonwealth edison spokesman said that tracking down the two million customers whose addresses have changed during the past N N years would be an administrative nightmare + in new york stock exchange composite trading yesterday commonwealth edison closed at $ N down N cents + the $ N billion <unk> N plant near <unk> ill. was completed in N + in a disputed N ruling the commerce commission said commonwealth edison could raise its electricity rates by $ N million to pay for the plant + but state courts upheld a challenge by consumer groups to the commission 's rate increase and found the rates illegal + the illinois supreme court ordered the commission to audit commonwealth edison 's construction expenses and refund any <unk> expenses + the utility has been collecting for the plant 's construction cost from its N million customers subject to a refund since N + in august the commission ruled that between $ N million and $ N million of the plant 's construction cost was <unk> and should be <unk> plus interest + in his ruling judge curry added an additional $ N million to the commission 's calculations + last month judge curry set the interest rate on the refund at N N + commonwealth edison now faces an additional <unk> refund on its <unk> rate <unk> <unk> that the illinois appellate court has estimated at $ N million + and consumer groups hope that judge curry 's <unk> N order may set a precedent for a second nuclear rate case involving commonwealth edison 's <unk> N plant + commonwealth edison is seeking about $ N million in rate increases to pay for <unk> N + the commission is expected to rule on the <unk> N case by year end + last year commonwealth edison had to refund $ N million for poor performance of its <unk> i nuclear plant + japan 's domestic sales of cars trucks and buses in october rose N N from a year earlier to N units a record for the month the japan automobile dealers ' association said + the strong growth followed year-to-year increases of N N in august and N N in september + the monthly sales have been setting records every month since march + october sales compared with the previous month inched down N N + sales of passenger cars grew N N from a year earlier to N units + sales of medium-sized cars which benefited from price reductions arising from introduction of the consumption tax more than doubled to N units from N in october N + texas instruments japan ltd. a unit of texas instruments inc. said it opened a plant in south korea to manufacture control devices + the new plant located in <unk> about N miles from seoul will help meet increasing and diversifying demand for control products in south korea the company said + the plant will produce control devices used in motor vehicles and household appliances + the survival of spinoff cray computer corp. as a fledgling in the supercomputer business appears to depend heavily on the creativity and <unk> of its chairman and chief designer seymour cray + not only is development of the new company 's initial machine tied directly to mr. cray so is its balance sheet + documents filed with the securities and exchange commission on the pending spinoff disclosed that cray research inc. will withdraw the almost $ N million in financing it is providing the new firm if mr. cray leaves or if the <unk> project he heads is scrapped + the documents also said that although the <unk> mr. cray has been working on the project for more than six years the cray-3 machine is at least another year away from a fully operational prototype + moreover there have been no orders for the cray-3 so far though the company says it is talking with several prospects + while many of the risks were anticipated when <unk> cray research first announced the spinoff in may the <unk> it attached to the financing had n't been made public until yesterday + we did n't have much of a choice cray computer 's chief financial officer gregory <unk> said in an interview + the theory is that seymour is the chief designer of the cray-3 and without him it could not be completed + cray research did not want to fund a project that did not include seymour + the documents also said that cray computer anticipates <unk> perhaps another $ N million in financing beginning next september + but mr. <unk> called that a <unk> scenario + the filing on the details of the spinoff caused cray research stock to jump $ N yesterday to close at $ N in new york stock exchange composite trading + analysts noted yesterday that cray research 's decision to link its $ N million <unk> note to mr. cray 's presence will complicate a valuation of the new company + it has to be considered as an additional risk for the investor said gary p. <unk> of <unk> group inc. minneapolis + cray computer will be a concept stock he said + you either believe seymour can do it again or you do n't + besides the designer 's age other risk factors for mr. cray 's new company include the cray-3 's tricky <unk> chip technology + the sec documents describe those chips which are made of <unk> <unk> as being so fragile and minute they will require special <unk> handling equipment + in addition the cray-3 will contain N processors twice as many as the largest current supercomputer + cray computer also will face intense competition not only from cray research which has about N N of the world-wide supercomputer market and which is expected to roll out the <unk> machine a direct competitor with the cray-3 in N + the spinoff also will compete with international business machines corp. and japan 's big three hitachi ltd. nec corp. and fujitsu ltd + the new company said it believes there are fewer than N potential customers for <unk> priced between $ N million and $ N million presumably the cray-3 price range + under terms of the spinoff cray research stockholders are to receive one cray computer share for every two cray research shares they own in a distribution expected to occur in about two weeks + no price for the new shares has been set + instead the companies will leave it up to the marketplace to decide + cray computer has applied to trade on nasdaq + analysts calculate cray computer 's initial book value at about $ N a share + along with the note cray research is <unk> about $ N million in assets primarily those related to the cray-3 development which has been a drain on cray research 's earnings + <unk> balance sheets clearly show why cray research favored the spinoff + without the cray-3 research and development expenses the company would have been able to report a profit of $ N million for the first half of N rather than the $ N million it posted + on the other hand had it existed then cray computer would have incurred a $ N million loss + mr. cray who could n't be reached for comment will work for the new colorado springs colo. company as an independent contractor the arrangement he had with cray research + regarded as the father of the supercomputer mr. cray was paid $ N at cray research last year + at cray computer he will be paid $ N + besides messrs. cray and <unk> other senior management at the company includes neil <unk> N president and chief executive officer joseph m. <unk> N vice president engineering malcolm a. <unk> N vice president software and douglas r. <unk> N vice president hardware + all came from cray research + cray computer which currently employs N people said it expects a work force of N by the end of N + john r. stevens N years old was named senior executive vice president and chief operating officer both new positions + he will continue to report to donald <unk> president and chief executive officer + mr. stevens was executive vice president of this <unk> holding company + arthur a. hatch N was named executive vice president of the company + he was previously president of the company 's eastern edison co. unit + john d. <unk> N was named to succeed mr. hatch as president of eastern edison + previously he was vice president of eastern edison + robert p. <unk> N was named senior vice president of eastern utilities + he was previously vice president + the u.s. claiming some success in its trade <unk> removed south korea taiwan and saudi arabia from a list of countries it is closely watching for allegedly failing to honor u.s. patents <unk> and other <unk> rights + however five other countries china thailand india brazil and mexico will remain on that so-called priority watch list as a result of an interim review u.s. trade representative carla hills announced + under the new u.s. trade law those countries could face accelerated <unk> investigations and stiff trade sanctions if they do n't improve their protection of intellectual property by next spring + mrs. hills said many of the N countries that she placed under <unk> degrees of scrutiny have made genuine progress on this touchy issue + she said there is growing <unk> around the world that <unk> of <unk> rights <unk> all trading nations and particularly the creativity and <unk> of an <unk> country 's own citizens + u.s. trade negotiators argue that countries with inadequate <unk> for <unk> rights could be hurting themselves by discouraging their own scientists and authors and by <unk> u.s. high-technology firms from investing or marketing their best products there + mrs. hills <unk> south korea for creating an <unk> task force and special enforcement teams of police officers and prosecutors trained to pursue movie and book <unk> + seoul also has instituted effective <unk> procedures to aid these teams she said + taiwan has improved its standing with the u.s. by <unk> a <unk> copyright agreement <unk> its trademark law and introducing legislation to protect foreign movie producers from unauthorized <unk> of their films + that measure could <unk> taipei 's growing number of small <unk> <unk> to pay movie producers for showing their films + saudi arabia for its part has vowed to enact a copyright law compatible with international standards and to apply the law to computer software as well as to literary works mrs. hills said + these three countries are n't completely off the hook though + they will remain on a <unk> list that includes N other countries + those countries including japan italy canada greece and spain are still of some concern to the u.s. but are deemed to pose <unk> problems for american patent and copyright owners than those on the priority list + gary hoffman a washington lawyer specializing in <unk> cases said the threat of u.s. <unk> combined with a growing recognition that protecting intellectual property is in a country 's own interest prompted the improvements made by south korea taiwan and saudi arabia + what this tells us is that u.s. trade law is working he said + he said mexico could be one of the next countries to be removed from the priority list because of its efforts to craft a new patent law + mrs. hills said that the u.s. is still concerned about disturbing developments in turkey and continuing slow progress in malaysia + she did n't elaborate although earlier u.s. trade reports have complained of videocassette <unk> in malaysia and <unk> for u.s. pharmaceutical patents in turkey + the N trade act requires mrs. hills to issue another review of the performance of these countries by april N + so far mrs. hills has n't deemed any cases bad enough to merit an accelerated investigation under the so-called special N provision of the act + argentina said it will ask creditor banks to <unk> its foreign debt of $ N billion the <unk> in the developing world + the declaration by economy minister <unk> <unk> is believed to be the first time such an action has been called for by an <unk> official of such <unk> + the latin american nation has paid very little on its debt since early last year + argentina <unk> to reach a reduction of N N in the value of its external debt mr. <unk> said through his spokesman <unk> <unk> + mr. <unk> met in august with u.s. assistant treasury secretary david mulford + <unk> negotiator carlos <unk> was in washington and new york this week to meet with banks + mr. <unk> recently has said the government of president carlos <unk> who took office july N feels a significant reduction of principal and interest is the only way the debt problem may be solved + but he has not said before that the country wants half the debt <unk> + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + three computers that changed the face of personal computing were launched in N + that year the apple ii commodore pet and tandy <unk> came to market + the computers were crude by today 's standards + apple ii owners for example had to use their television sets as screens and <unk> data on <unk> + but apple ii was a major advance from apple i which was built in a garage by stephen <unk> and steven jobs for <unk> such as the <unk> computer club + in addition the apple ii was an affordable $ N + crude as they were these early pcs triggered explosive product development in desktop models for the home and office + big mainframe computers for business had been around for years + but the new N pcs unlike earlier <unk> types such as the <unk> <unk> and <unk> had <unk> and could store about two pages of data in their memories + current pcs are more than N times faster and have memory capacity N times greater than their N counterparts + there were many pioneer pc <unk> + william gates and paul allen in N developed an early <unk> system for pcs and gates became an industry billionaire six years after ibm adapted one of these versions in N + alan f. <unk> currently chairman of seagate technology led the team that developed the disk drives for pcs + dennis <unk> and dale <unk> two atlanta engineers were <unk> of the internal <unk> that allow pcs to share data via the telephone + ibm the world leader in computers did n't offer its first pc until august N as many other companies entered the market + today pc shipments annually total some $ N billion world-wide + <unk> <unk> & co. an australian pharmaceuticals company said its <unk> inc. affiliate acquired <unk> inc. for $ N million + <unk> is a new <unk> pharmaceuticals concern that sells products under the <unk> label + <unk> said it owns N N of <unk> 's voting stock and has an agreement to acquire an additional N N + that stake together with its convertible preferred stock holdings gives <unk> the right to increase its interest to N N of <unk> 's voting stock + oil production from australia 's bass <unk> fields will be raised by N barrels a day to about N barrels with the launch of the <unk> field the first of five small fields scheduled to be brought into production before the end of N + esso australia ltd. a unit of new york-based exxon corp. and broken hill <unk> operate the fields in a joint venture + esso said the <unk> field started production tuesday + output will be gradually increased until it reaches about N barrels a day + the field has reserves of N million barrels + reserves for the five new fields total N million barrels + the <unk> and <unk> fields are expected to start producing early next year and the <unk> and <unk> fields later next year + esso said the fields were developed after the australian government decided in N to make the first N million barrels from new fields free of <unk> tax + <unk> <unk> corp. said it completed the $ N million sale of its southern optical subsidiary to a group led by the unit 's president thomas r. sloan and other managers + following the acquisition of <unk> <unk> by a buy-out group led by shearson lehman hutton earlier this year the maker of <unk> <unk> decided to <unk> itself of certain of its <unk> businesses + the sale of southern optical is a part of the program + the white house said president bush has approved duty-free treatment for imports of certain types of watches that are n't produced in significant quantities in the u.s. the virgin islands and other u.s. <unk> + the action came in response to a petition filed by <unk> inc. for changes in the u.s. <unk> system of preferences for imports from developing nations + previously watch imports were denied such duty-free treatment + <unk> had requested duty-free treatment for many types of watches covered by N different u.s. tariff <unk> + the white house said mr. bush decided to grant duty-free status for N categories but turned down such treatment for other types of watches because of the potential for material injury to watch producers located in the u.s. and the virgin islands + <unk> is a major u.s. producer and seller of watches including <unk> <unk> watches assembled in the philippines and other developing nations covered by the u.s. tariff preferences + u.s. trade officials said the philippines and thailand would be the main beneficiaries of the president 's action + imports of the types of watches that now will be eligible for duty-free treatment totaled about $ N million in N a relatively small share of the $ N billion in u.s. watch imports that year according to an aide to u.s. trade representative carla hills + magna international inc. 's chief financial officer james mcalpine resigned and its chairman frank <unk> is stepping in to help turn the <unk> manufacturer around the company said + mr. <unk> will direct an effort to reduce overhead and curb capital spending until a more satisfactory level of profit is achieved and maintained magna said + stephen <unk> currently vice president finance will succeed mr. mcalpine + an ambitious expansion has left magna with excess capacity and a heavy debt load as the automotive industry enters a downturn + the company has reported declines in operating profit in each of the past three years despite steady sales growth + magna recently cut its quarterly dividend in half and the company 's class a shares are <unk> far below their 52-week high of N canadian dollars us$ N + on the toronto stock exchange yesterday magna shares closed up N canadian cents to c$ N + mr. <unk> founder and controlling shareholder of magna resigned as chief executive officer last year to seek unsuccessfully a seat in canada 's parliament + analysts said mr. <unk> wants to resume a more influential role in running the company + they expect him to cut costs throughout the organization + the company said mr. <unk> will personally direct the restructuring <unk> by <unk> <unk> president and chief executive + neither they nor mr. mcalpine could be reached for comment + magna said mr. mcalpine resigned to pursue a consulting career with magna as one of his clients + lord <unk> <unk> chairman of english china <unk> plc was named a nonexecutive director of this british chemical company + japanese investors nearly <unk> bought up two new mortgage <unk> mutual funds totaling $ N million the u.s. federal national mortgage association said + the purchases show the strong interest of japanese investors in u.s. <unk> instruments fannie mae 's chairman david o. maxwell said at a news conference + he said more than N N of the funds were placed with japanese institutional investors + the rest went to investors from france and hong kong + earlier this year japanese investors snapped up a similar $ N million mortgage-backed securities mutual fund + that fund was put together by blackstone group a new york investment bank + the latest two funds were assembled jointly by goldman sachs & co. of the u.s. and japan 's daiwa securities co + the new seven-year funds one offering a fixed-rate return and the other with a floating-rate return linked to the london interbank offered rate offer two key advantages to japanese investors + first they are designed to eliminate the risk of prepayment mortgage-backed securities can be retired early if interest rates decline and such prepayment forces investors to <unk> their money at lower rates + second they channel monthly mortgage payments into semiannual payments reducing the administrative burden on investors + by addressing those problems mr. maxwell said the new funds have become extremely attractive to japanese and other investors outside the u.s. + such devices have boosted japanese investment in mortgage-backed securities to more than N N of the $ N billion in such instruments outstanding and their purchases are growing at a rapid rate + they also have become large purchasers of fannie mae 's corporate debt buying $ N billion in fannie mae bonds during the first nine months of the year or almost a <unk> of the total amount issued + james l. <unk> <unk> executive vice president was named a director of this oil concern expanding the board to N members + ltv corp. said a federal bankruptcy court judge agreed to extend until march N N the period in which the steel aerospace and energy products company has the exclusive right to file a reorganization plan + the company is operating under chapter N of the federal bankruptcy code giving it court protection from creditors ' lawsuits while it attempts to work out a plan to pay its debts + italian chemical giant montedison <unk> through its montedison acquisition n.v. indirect unit began its $ <unk> tender offer for all the common shares outstanding of erbamont n.v. a maker of pharmaceuticals incorporated in the netherlands + the offer advertised in today 's editions of the wall street journal is scheduled to expire at the end of november + montedison currently owns about N N of erbamont 's common shares outstanding + the offer is being launched <unk> to a previously announced agreement between the companies + japan 's reserves of gold convertible foreign currencies and special drawing rights fell by a hefty $ N billion in october to $ N billion the finance ministry said + the total marks the sixth consecutive monthly decline + the <unk> downturn reflects the intensity of bank of japan <unk> intervention since june when the u.s. currency temporarily surged above the N yen level + the announcement follows a sharper $ N billion decline in the country 's foreign reserves in september to $ N billion + pick a country any country + it 's the latest investment craze sweeping wall street a rash of new closed-end country funds those publicly traded portfolios that invest in stocks of a single foreign country + no fewer than N country funds have been launched or registered with regulators this year triple the level of all of N according to charles e. simon & co. a washington-based research firm + the turf recently has ranged from chile to <unk> to portugal + next week the philippine fund 's launch will be capped by a visit by philippine president <unk> aquino the first time a head of state has kicked off an issue at the big board here + the next province + anything 's possible how about the new guinea fund <unk> george foot a managing partner at <unk> management associates of <unk> mass + the recent explosion of country funds <unk> the closed-end fund mania of the 1920s mr. foot says when narrowly focused funds grew wildly popular + they fell into <unk> after the N crash + unlike traditional <unk> mutual funds most of these <unk> portfolios are the closed-end type issuing a fixed number of shares that trade publicly + the surge brings to nearly N the number of country funds that are or soon will be listed in new york or london + these funds now account for several billions of dollars in assets + people are looking to stake their claims now before the number of available nations runs out says michael porter an analyst at smith barney harris upham & co. new york + behind all the <unk> is some <unk> competition + as individual investors have turned away from the stock market over the years securities firms have scrambled to find new products that brokers find easy to sell + and the firms are stretching their <unk> far and wide to do it + financial planners often urge investors to diversify and to hold a <unk> of international securities + and many emerging markets have <unk> more mature markets such as the u.s. and japan + country funds offer an easy way to get a taste of foreign stocks without the hard research of seeking out individual companies + but it does n't take much to get burned + political and currency gyrations can <unk> the funds + another concern the funds ' share prices tend to swing more than the broader market + when the stock market dropped nearly N N oct. N for instance the mexico fund plunged about N N and the spain fund fell N N + and most country funds were clobbered more than most stocks after the N crash + what 's so wild about the funds ' frenzy right now is that many are trading at historically fat premiums to the value of their underlying portfolios + after trading at an average discount of more than N N in late N and part of last year country funds currently trade at an average premium of N N + the reason share prices of many of these funds this year have climbed much more sharply than the foreign stocks they hold + it 's probably worth paying a premium for funds that invest in markets that are partially closed to foreign investors such as south korea some specialists say + but some european funds recently have skyrocketed spain fund has surged to a startling N N premium + it has been targeted by japanese investors as a good long-term play tied to N 's european economic integration + and several new funds that are n't even fully invested yet have jumped to trade at big premiums + i 'm very alarmed to see these rich <unk> says smith barney 's mr. porter + the newly <unk> premiums reflect the increasingly global marketing of some country funds mr. porter suggests + unlike many u.s. investors those in asia or europe seeking <unk> exposure may be less <unk> to paying higher prices for country funds + there may be an international viewpoint cast on the funds listed here mr. porter says + nonetheless plenty of u.s. analysts and money managers are <unk> at the <unk> trading levels of some country funds + they argue that u.s. investors often can buy american depositary receipts on the big stocks in many funds these so-called adrs represent shares of foreign companies traded in the u.s. + that way investors can essentially buy the funds without paying the premium + for people who insist on jumping in now to buy the funds <unk> 's mr. foot says the only advice i have for these folks is that those who come to the party late had better be ready to leave quickly + the u.s. and soviet union are holding technical talks about possible repayment by moscow of $ N million in <unk> russian debts owed to the u.s. government the state department said + if the debts are repaid it could clear the way for soviet bonds to be sold in the u.s. + however after two meetings with the soviets a state department spokesman said that it 's too early to say whether that will happen + <unk> with the talks the state department said it has permitted a soviet bank to open a new york branch + the branch of the bank for foreign economic affairs was approved last spring and opened in july + but a soviet bank here would be <unk> unless moscow found a way to settle the $ N million debt which was lent to the country 's short-lived democratic <unk> government before the communists seized power in N + under a N law the johnson debt default act as amended it 's illegal for americans to extend credit to countries in default to the u.s. government unless they are members of the world bank and international monetary fund + the u.s.s.r. belongs to neither organization + moscow has settled <unk> debts with other countries in recent years at less than face value + the state department stressed the <unk> debts as the key to satisfying the johnson act + but the soviets might still face legal obstacles to raising money in the u.s. until they settle hundreds of millions of dollars in additional debt still outstanding from the world war ii <unk> program + in another reflection that the growth of the economy is <unk> off the government said that orders for manufactured goods and spending on construction failed to rise in september + meanwhile the national association of purchasing management said its latest survey indicated that the manufacturing economy contracted in october for the sixth consecutive month + its index inched up to N N in october from N N in september + any reading below N N suggests the manufacturing sector is generally declining + the purchasing managers however also said that orders turned up in october after four months of decline + factories booked $ N billion in orders in september nearly the same as the $ N billion in august the commerce department said + if not for a N N surge in orders for capital goods by defense contractors factory orders would have fallen N N + in a separate report the department said construction spending ran at an annual rate of $ N billion not significantly different from the $ N billion reported for august + private construction spending was down but government building activity was up + the figures in both reports were adjusted to remove the effects of usual seasonal patterns but were n't adjusted for inflation + kenneth <unk> economist for society corp. a cleveland bank said demand for exports of factory goods is beginning to <unk> off + at the same time the drop in interest rates since the spring has failed to revive the residential construction industry + what sector is stepping forward to pick up the slack he asked + i draw a blank + by most measures the nation 's industrial sector is now growing very slowly if at all + factory <unk> fell in september + so did the federal reserve board 's <unk> index + yet many economists are n't predicting that the economy is about to slip into recession + they cite a lack of imbalances that provide early warning signals of a downturn + inventories are closely watched for such clues for instance + economists say a buildup in inventories can <unk> cutbacks in production that can lead to a recession + but yesterday 's factory orders report had good news on that front it said factory inventories fell N N in september the first decline since february N + this <unk> to the soft landing scenario said elliott <unk> an economist at donaldson lufkin & jenrette securities corp + i do n't see any signs that inventories are excessive + a soft landing is an economic slowdown that <unk> inflation without leading to a recession + the department said orders for <unk> goods those intended to last fewer than three years fell N N in september to $ N billion after climbing N N the month before + orders for durable goods were up N N to $ N billion after rising N N the month before + the department previously estimated that <unk> orders fell N N in september + factory shipments fell N N to $ N billion after rising N N in august + shipments have been relatively level since january the commerce department noted + manufacturers ' backlogs of unfilled orders rose N N in september to $ N billion helped by strength in the defense capital goods sector + excluding these orders backlogs declined N N + in its construction spending report the commerce department said residential construction which accounts for nearly half of all construction spending was off N N in september to an annual rate of $ N billion + david <unk> economist for the mortgage bankers association predicted the drop in interest rates eventually will boost spending on single-family homes but probably not until early next year + spending on private <unk> construction was off N N to an annual rate of $ N billion with no sector showing strength + government construction spending rose N N to $ N billion + after adjusting for inflation the commerce department said construction spending did n't change in september + for the first nine months of the year total construction spending ran about N N above last year 's level + the government 's construction spending figures contrast with a report issued earlier in the week by mcgraw-hill inc. 's <unk> dodge group + dodge reported an N N increase in construction contracts awarded in september + the <unk> counts money as it is spent dodge counts contracts when they are awarded + the government includes money spent on residential <unk> dodge does n't + although the purchasing managers ' index continues to indicate a slowing economy it is n't <unk> an imminent recession said robert <unk> chairman of the association 's survey committee and director of materials management at pitney bowes inc. stamford conn + he said the index would have to be in the low N N range for several months to be considered a forecast of recession + the report offered new evidence that the nation 's export growth though still continuing may be slowing + only N N of the purchasing managers reported better export orders in october down from N N in september + and N N said export orders were down last month compared with N N the month before + the <unk> managers ' report also added evidence that inflation is under control + for the fifth consecutive month purchasing managers said prices for the goods they purchased fell + the decline was even <unk> than in september + they also said that vendors were delivering goods more quickly in october than they had for each of the five previous months + economists consider that a sign that <unk> pressures are <unk> + when demand is stronger than suppliers can handle and delivery times <unk> prices tend to rise + the purchasing managers ' report is based on data provided by more than N purchasing executives + each of the survey 's indicators <unk> the difference between the number of purchasers reporting improvement in a particular area and the number reporting a worsening + for the first time the october survey polled members on imports + it found that of the N N who import N N said they imported more in october and N N said they imported less than the previous month + while acknowledging one month 's figures do n't prove a trend mr. <unk> said it does lead you to suspect imports are going down or at least not increasing that much + items listed as being in short supply numbered only about a dozen but they included one <unk> milk and milk <unk> + it 's an odd thing to put on the list mr. <unk> noted + he said that for the second month in a row food processors reported a shortage of <unk> dry milk + they blamed increased demand for dairy products at a time of exceptionally high u.s. exports of dry milk coupled with very low import quotas + <unk> <unk> in new york contributed to this article + here are the commerce department 's figures for construction spending in billions of dollars at seasonally adjusted annual rates + here are the commerce department 's latest figures for manufacturers in billions of dollars seasonally adjusted + judging from the <unk> in <unk> <unk> 's a wild sheep chase <unk> N pages $ N baby boomers on both sides of the pacific have a lot in common + although set in japan the novel 's <unk> is almost entirely western especially american + characters drink <unk> dogs <unk> <unk> b. <unk> and watch bugs bunny reruns + they read <unk> <unk> and talk about <unk> and <unk> + they worry about their careers drink too much and suffer through broken <unk> and <unk> affairs + this is japan + for an american reader part of the <unk> of this engaging novel should come in recognizing that japan is n't the <unk> society of contemporary american <unk> + it 's also <unk> to read a japanese author who clearly does n't belong to the <unk> <unk> school of writers who <unk> the notion of the unique japanese <unk> by outsiders + if a wild sheep chase carries an implicit message for international relations it 's that the japanese are more like us than most of us think + that 's not to say that the <unk> plot of a wild sheep chase is rooted in reality + it 's <unk> and often funny + a <unk> <unk> <unk> hero sets off for snow country in search of an <unk> sheep with a star on its back at the <unk> of a <unk> <unk> <unk> with a stanford degree + he has in <unk> his <unk> girlfriend whose sassy <unk> mark her as anything but a <unk> <unk> + along the way he meets a <unk> christian <unk> who offers the hero god 's phone number and the sheep man a sweet <unk> figure who wears what else a <unk> + the 40-year-old mr. <unk> is a publishing <unk> in japan + a more recent novel norwegian wood every japanese under N seems to be <unk> in <unk> <unk> has sold more than four million copies since <unk> published it in N + but he is just one of several <unk> writers tokyo 's <unk> pack who are <unk> the <unk> charts in japan + their books are written in <unk> contemporary language and usually carry hefty <unk> of <unk> + in robert <unk> 's you <unk> have macmillan N pages $ N the <unk> give way to baseball in the <unk> version we would be hard put to call a game + as mr. <unk> describes it <unk> baseball is a mirror of japan 's <unk> <unk> of hard work and harmony + <unk> is japanese for team spirit and japanese <unk> have miles and miles of it + a player 's commitment to practice and team image is as important as his <unk> average + polls once named tokyo giants star <unk> <unk> a <unk> <unk> <unk> soul as the male symbol of japan + but other than the fact that <unk> is played with a ball and a bat it 's <unk> fans <unk> return <unk> balls to stadium <unk> the strike zone <unk> depending on the size of the <unk> ties are permitted even welcomed since they <unk> <unk> the shame of defeat players must <unk> by strict rules of conduct even in their personal lives players for the tokyo giants for example must always wear ties when on the road + you <unk> have <unk> is the often amusing <unk> of how american <unk> <unk> to two per team fare in japan + despite the enormous sums of money they 're paid to stand up at a japanese plate a good number decide it 's not worth it and run for home + funny business <unk> N pages $ N by gary <unk> is anything but + it 's the <unk> complaint of an <unk> american whom sony <unk> for a year while he was on a <unk> <unk> in tokyo to the regret of both parties + in sometimes amusing more often <unk> even vicious <unk> mr. <unk> describes how sony <unk> even the most mundane aspects of its workers ' lives at the <unk> office where employees are assigned lunch partners and at home in the <unk> company <unk> run by a <unk> <unk> + some of his <unk> about japanese management style are on the mark + it 's probably true that many <unk> put in <unk> overtime just for the <unk> of solidarity that the system is so <unk> that only the assistant manager can talk to the manager and the manager to the general manager and that sony was <unk> of letting a young short-term american employee take on any responsibility + all of this must have been <unk> frustrating to mr. <unk> who went to sony with degrees in business and computer science and was <unk> to <unk> another <unk> + but sony ultimately took a lesson from the american management books and fired mr. <unk> after he committed the social crime of making an appointment to see the venerable <unk> <unk> founder of sony + it 's a shame their meeting never took place + mr. <unk> certainly would have learned something and it 's even possible mr. <unk> would have too + ms. <unk> the journal 's deputy editorial features editor worked in tokyo for three years + more and more corners of the globe are becoming free of tobacco smoke + in singapore a new law requires smokers to put out their cigarettes before entering restaurants department stores and sports centers or face a $ N fine + <unk> and private clubs are exempt from the ban and smoking will be permitted in bars except during <unk> hours an official said + singapore already bans smoking in all theaters buses public elevators hospitals and fast-food restaurants + in malaysia <unk> <unk> <unk> a deputy minister in the prime minister 's office launched a <unk> week at the <unk> institute of technology near kuala lumpur and urged other schools to ban <unk> smoking + south korea has different concerns + in seoul officials began visiting about N cigarette <unk> to remove illegal <unk> and <unk> advertising imported cigarettes + south korea has opened its market to foreign cigarettes but restricts advertising to designated places + a marketing study indicates that hong kong consumers are the most <unk> in the N major markets where the survey was carried out + the study by the backer spielvogel bates ad agency also found that the colony 's consumers feel more pressured than those in any of the other surveyed markets which include the u.s. and japan + the survey found that nearly half of hong kong consumers <unk> what it identified as <unk> values compared with about one-third in japan and the u.s. + more than three in five said they are under a great deal of stress most of the time compared with less than one in two u.s. consumers and one in four in japan + the <unk> cabinet endorsed finance minister <unk> <unk> 's proposal to build a $ N million conference center for a joint meeting of the world bank and international monetary fund two years from now + the meeting which is expected to draw N to <unk> was going to be held at the central plaza hotel but the government balked at the hotel 's conditions for undertaking necessary expansion + a major concern about the current plan is whether the new center can be built in such a short time + <unk> arafat has written to the chairman of the international olympic committee asking him to back a palestinian bid to join the committee the <unk> liberation organization news agency <unk> said + an official of the palestinian olympic committee said the committee first applied for membership in N and renewed its application in august of this year + the plo in recent months has been trying to join international organizations but failed earlier this year to win membership in the world health organization and the world tourism organization + a beijing <unk> assistant has become the first <unk> chinese to get aids through sex the people 's daily said + it said the man whom it did not name had been found to have the disease after hospital tests + once the disease was confirmed all the man 's associates and family were tested but none have so far been found to have aids the newspaper said + the man had for a long time had a chaotic sex life including relations with foreign men the newspaper said + the polish government increased home electricity charges by N N and doubled gas prices + the official news agency <unk> said the increases were intended to bring <unk> low energy charges into line with production costs and compensate for a rise in coal prices + in <unk> news south korea in establishing diplomatic ties with poland yesterday announced $ N million in loans to the financially strapped warsaw government + in a victory for environmentalists hungary 's parliament terminated a multibillion-dollar river <unk> dam being built by <unk> firms + the <unk> dam was designed to be <unk> with another dam now nearly complete N miles <unk> in czechoslovakia + in ending hungary 's part of the project parliament authorized prime minister <unk> <unk> to modify a N agreement with czechoslovakia which still wants the dam to be built + mr. <unk> said in parliament that czechoslovakia and hungary would suffer environmental damage if the <unk> <unk> were built as planned + czechoslovakia said in may it could seek $ N billion from hungary if the <unk> contract were broken + the <unk> dam ca n't be operated solely at peak periods without the <unk> project + a painting by august <unk> set a <unk> price record when it sold at auction in stockholm for $ N million + <unk> ii was painted in oils by the playwright in N + after years of decline <unk> in france showed a N N <unk> last year with N more couples <unk> <unk> in N than in the previous year the national statistics office said + but the number of <unk> last year N was still well below the N registered in N the last year of increasing <unk> + <unk> ltd. said it agreed to issue N million canadian dollars us$ N million of N N senior debentures due nov. N N together with N bond purchase warrants + the toronto-based real estate concern said each bond warrant <unk> the holder to buy c$ N principal amount of debentures at par plus accrued interest to the date of purchase + the warrants expire nov. N N + the issue will be <unk> into fixed-rate u.s. dollars at a rate the company said is less than N N a spokesman declined to elaborate + lead underwriters for the issue are <unk> <unk> inc. and <unk> dominion securities inc. both toronto-based investment dealers + <unk> said it expects to complete the issue by the end of the month + as an actor charles lane is n't the <unk> of charlie <unk> 's spirit + steve martin has already laid his claim to that + but it is mr. lane as movie director producer and writer who has been <unk> with <unk> <unk> 's little tramp in a contemporary way + in N as a film student at the purchase campus of the state university of new york mr. lane shot a place in time a <unk> black-and-white film about a <unk> artist a man of the streets + now N years later mr. lane has revived his artist in a <unk> movie called sidewalk stories a <unk> piece of work about a <unk> tramp + of course if the film contained dialogue mr. lane 's artist would be called a homeless person + so would the little tramp for that matter + i say contained dialogue because sidewalk stories is n't really silent at all + <unk> marc <unk> a college friend of mr. lane 's who earns his living playing the double bass in classical music <unk> has prepared an exciting <unk> score that tells you what the characters are thinking and feeling far more precisely than <unk> or even words would + much of mr. lane 's film takes a highly <unk> view of life on the streets though probably no more <unk> than mr. <unk> 's notion of the tramp as the <unk> free spirit + <unk> in lovely black and white by bill <unk> the new york streets of sidewalk stories seem benign + on wall street men and women walk with great purpose <unk> one another only when they <unk> for <unk> + the artist hangs out in greenwich village on a strip of sixth avenue <unk> by <unk> <unk> and other <unk> <unk> + this clearly is not real life no crack dealers no <unk> men selling four-year-old copies of <unk> no one <unk> up in a <unk> box + the artist has his routine + he spends his days <unk> <unk> or trying to + at night he returns to the <unk> building he calls home + his life including his <unk> with a competing <unk> artist seems <unk> + he is his own man + then just as the tramp is given a blind girl to cure in city lights the artist is put in charge of returning a <unk> <unk> <unk> <unk> whose father has been murdered by <unk> to her mother + this <unk> child turns out to be a blessing and a <unk> + she gives the artist a sense of purpose but also <unk> him to the serious <unk> of his <unk> life + the <unk> at the <unk> mission seem far <unk> when he has to <unk> a little girl into one of them at night + to further load the stakes mr. lane <unk> up a highly <unk> <unk> for the artist with a young woman who owns her own children 's shop and who lives in an expensive <unk> apartment building + this story line might <unk> more strongly if mr. lane had as strong a presence in front of the camera as he does behind it + mr. lane 's final purpose is n't to <unk> the artist 's <unk> existence + he has a point he wants to make and he makes it with a great deal of force + the movie ends with sound the sound of street people talking and there is n't anything <unk> or <unk> in those rough beaten voices + the french film maker <unk> <unk> has managed another kind of weird achievement with his story of women + he has made a harsh brilliant picture one that 's <unk> about a character who viewed from the most sympathetic <unk> would seem <unk> + yet this woman <unk> <unk> carries historical significance both as one of the last women to be executed in france and as a symbol of the <unk> government 's <unk> + while <unk> <unk> with the germans during world war ii in the deaths of thousands of resistance <unk> and <unk> its officials needed a <unk> <unk> <unk> + <unk> a <unk> <unk> was their woman + she became an <unk> <unk> and continued because it enabled her to buy <unk> cocoa and other <unk> <unk> + she was <unk> and in one <unk> job killed a client + her <unk> was <unk> and brief + although she was kind and <unk> to her children she was <unk> to her <unk> husband she openly brought her <unk> into their home + as presented by mr. <unk> and played with <unk> intensity by <unk> <unk> <unk> called <unk> <unk> in the film was not a nice person + but she did n't deserve to have her head <unk> off + there is very little to recommend old <unk> a confused <unk> of the carlos <unk> novel of the mexican revolution + most of the picture is taken up with endless scenes of many people either fighting or eating and drinking to <unk> victory + i mention the picture only because many bad movies have a bright spot and this one has gregory peck in a <unk> loose and energetic portrayal of an old man who wants to die the way he wants to die + video tip before seeing sidewalk stories take a look at city lights <unk> 's tramp at his <unk> + boeing co. said it is discussing plans with three of its regular japanese suppliers to possibly help build a larger version of its popular N <unk> + the discussions are still in preliminary stages and the specific details have n't been worked out between the seattle aerospace company and <unk> heavy industries ltd. mitsubishi heavy industries ltd. and fuji heavy industries ltd + the three japanese companies build the body sections of the N accounting for a combined N N of the aircraft + japanese press reports have speculated that the japanese contribution could rise to between N N and N N under the new program + if boeing goes ahead with the larger N the plane could hit the market in the mid-1990s + this is the year the negative ad for years a secondary presence in most political campaigns became the main event + the irony is that the attack commercial after getting a boost in last year 's presidential campaign has come of age in an <unk> election year with only a few <unk> scattered across the country + but in the three leading political <unk> of N the negative ads have reached new levels of <unk> raising fears that this kind of <unk> empty of significant issues is <unk> in a new era of campaigns without content + now says joseph <unk> a pioneer in political television the idea is to attack first last and always + a trend that started with the first <unk> of politics accelerated with the <unk> of the television age and became a <unk> art form in N has reached an entirely new stage + to get people 's attention these days says douglas <unk> a political consultant your tv ad needs to be bold and entertaining and more often than not that means <unk> + and unlike a few years ago you do n't even have to worry whether the ad is <unk> + in N as often as not the principal fights in the major campaigns are prompted by the ads themselves + take a look then at the main attack commercials that set the tone for tuesday 's elections in new york city new jersey and virginia + new york city + the screen <unk> with a small tight <unk> shot of david dinkins democratic candidate for mayor of new york city + david dinkins failed to file his income taxes for four straight years says a <unk> male voice + and then this television commercial paid for by republican rudolph giuliani 's campaign and produced by roger <unk> the master of negative tv ads really gets down to business + mr. dinkins the ad charges also failed to report his campaign contributions accurately <unk> his links to a failing insurance company and paid a convicted <unk> through a phony organization with no members no receipts and no office + david dinkins says the <unk> why does he always wait until he 's caught + nasty <unk> says john <unk> mr. dinkins 's issues director designed to <unk> a case of political corruption that simply does n't exist + <unk> by the giuliani ads mr. dinkins 's tv consultants robert <unk> and david <unk> finally <unk> a negative ad of their own + the screen shows two distorted <unk> photos presumably of two politicians + compare two candidates for mayor says the announcer + one says he 's for banning <unk> bullets + the other has opposed a ban on <unk> bullets + one claims he 's pro-choice + the other has opposed a woman 's right to choose + funny thing says the <unk> both these candidates are named rudolph giuliani + who 's telling the truth + everybody and nobody + it 's a classic situation of ads that are true but not always fully accurate + mr. dinkins did fail to file his income taxes for four years but he insists he voluntarily admitted the oversight when he was being considered for a city job + he was on the board of an insurance company with financial problems but he insists he made no secret of it + the city 's campaign finance board has refused to pay mr. dinkins $ N in matching funds because his campaign records are incomplete + the campaign has blamed these reporting problems on computer errors + and says mr. dinkins he did n't know the man his campaign paid for a <unk> effort had been convicted of <unk> + but say mr. dinkins 's managers he did have an office and his organization did have members + mr. giuliani 's campaign chairman peter powers says the dinkins ad is deceptive + the other side he argues knows giuliani has always been pro-choice even though he has personal reservations + they know he is generally opposed to <unk> bullets but that he had some reservations about the language in the legislation + virginia + democratic <unk> gov. douglas wilder opened his gubernatorial battle with republican marshall coleman with an abortion commercial produced by frank <unk> that analysts of every political <unk> agree was a tour de force + against a shot of <unk> <unk> on an american flag an announcer talks about the strong tradition of freedom and individual liberty that <unk> have <unk> for generations + then just as an image of the <unk> of thomas jefferson <unk> from the screen the announcer continues on the issue of abortion marshall coleman wants to take away your right to choose and give it to the politicians + that commercial which said mr. coleman wanted to take away the right of abortion even in cases of rape and incest a charge mr. coleman denies changed the dynamics of the campaign <unk> it at least in part into a <unk> on abortion + the ad prompted mr. coleman the former virginia attorney general to launch a series of advertisements created by bob goodman and designed to shake mr. wilder 's support among the very women who were attracted by the abortion ad + the coleman <unk> featured a <unk> of a young woman in <unk> and the ad suggested that she was <unk> an <unk> courtroom <unk> + a voice says <unk> now do n't you have <unk> + then an announcer <unk> it was douglas wilder who introduced a bill to force rape victims age N and younger to be <unk> about their private lives by lawyers for accused <unk> + so the next time mr. wilder talks about the rights of women ask him about this law he tried to pass + mr. wilder did introduce such legislation N years ago but he did so at the request of a <unk> a common legislative technique used by lawmakers + the legislation itself noted that it was introduced by request and in N mr. wilder introduced a bill to protect rape victims from <unk> <unk> + people have grown tired of these ads and coleman has gotten the <unk> of being a negative <unk> says mark <unk> a political scientist at mary washington college + wilder has managed to get across the idea that coleman will say anything to get elected governor and more important has been able to put the <unk> for all the negative <unk> on coleman + mr. coleman said this week that he would devote the remainder of the political season to positive <unk> but the truce lasted only hours + by tuesday night television stations were carrying new ads featuring mr. coleman himself raising questions about mr. wilder 's <unk> to rape victims + new jersey + the attacks began when democratic rep. james florio aired an ad featuring a drawing of <unk> and a photograph of mr. florio 's rival republican rep. jim courter + remember <unk> says a female voice + consider jim courter + and then this commercial produced by bob <unk> gets down to its own mean and <unk> business + pictures of <unk> oil <unk> <unk> into focus and the female voice <unk> that hazardous waste on his mr. courter 's property the neighbors are suing for consumer fraud + and the nose on mr. courter 's face grows + the only fraud involved cry mr. courter 's <unk> is the florio commercial itself and so the courter campaign has responded with its own <unk> commercial produced by mr. <unk> + in this one the screen <unk> with photographs of both candidates + who 's really lying asks a female voice + florio 's lying the voice goes on because the barrel on courter 's land contained heating oil was <unk> up and caused no pollution + mr. courter 's long nose <unk> while mr. florio 's grows + who 's telling the truth + stephen <unk> a political scientist at new jersey 's <unk> institute says it 's another example of an ad that 's true but not fully accurate + barrels were dumped on the courter property a complaint was made but there is no evidence the barrels were a serious threat to the environment + even so according to mr. <unk> the ad was devastating because it raised questions about mr. courter 's credibility + but it 's building on a long tradition + in N on route to a re-election rout of democrat frank <unk> gop gov. nelson rockefeller of new york appeared in person saying if you want to keep the crime rates high <unk> is your man + a seat on the chicago board of trade was sold for $ N down $ N from the previous sale last friday + seats currently are quoted at $ N bid and $ N asked + the record price for a full membership on the exchange is $ N set aug. N N + japanese investment in southeast asia is <unk> the region toward economic integration + interviews with analysts and business people in the u.s. suggest that japanese capital may produce the economic cooperation that southeast asian politicians have pursued in fits and starts for decades + but japan 's power in the region also is <unk> fears of domination and <unk> fresh policy questions + the flow of japanese funds has set in motion a process <unk> these economies will be <unk> together by the great japanese investment machine says robert <unk> vice chairman of goldman sachs international corp + in the past five years japanese companies have tripled their commitments in asia to $ N billion + in thailand for example the government 's board of investment approved $ N million of japanese investment in N N times the u.s. investment figure for the year + japan 's commitment in southeast asia also includes steep increases in foreign assistance and trade + asia 's other <unk> countries are following japan 's lead and pumping capital into the region + in taiwan and south korea rising wages are forcing manufacturers to seek other overseas sites for <unk> production + these nations known as asia 's little <unk> also are contributing to southeast asia 's integration but their influence will remain subordinate to japan 's + for <unk> countries such as thailand and malaysia the investment will provide needed jobs and spur growth + but asian nations ' harsh memories of their military domination by japan in the early part of this century make them fearful of falling under japanese economic <unk> now + because of budget constraints in washington the u.s. encourages japan to share economic burdens in the region + but it <unk> yielding political ground + in the coming decade analysts say <unk> relations will be tested as tokyo comes to terms with its new status as the region 's economic <unk> + japan 's swelling investment in southeast asia is part of its economic evolution + in the past decade japanese manufacturers concentrated on domestic production for export + in the 1990s spurred by rising labor costs and the strong yen these companies will increasingly turn themselves into <unk> with plants around the world + to capture the investment southeast asian nations will move to accommodate japanese business + these nations ' internal decisions will be made in a way not to <unk> their largest aid <unk> largest private investor and largest lender says richard <unk> director of the international business and research program at the university of southern california 's graduate school of business + japanese money will help turn southeast asia into a more <unk> economic region + but analysts say asian cooperation is n't likely to parallel the european common market approach + rather japanese investment will spur integration of certain sectors says kent <unk> a specialist in east asian economies at the <unk> wilson school for public and <unk> affairs at princeton university + in electronics for example a japanese company might make television picture <unk> in japan <unk> the sets in malaysia and export them to indonesia + the effect will be to pull asia together not as a common market but as an integrated production zone says goldman sachs 's mr. <unk> + countries in the region also are beginning to consider a <unk> for closer economic and political ties + the economic and foreign ministers of N asian and pacific nations will meet in australia next week to discuss global trade issues as well as regional matters such as transportation and telecommunications + participants will include the u.s. australia canada japan south korea and new zealand as well as the six members of the association of southeast asian nations thailand malaysia singapore indonesia the philippines and <unk> + in addition the u.s. this year offered its own plan for cooperation around the pacific <unk> in a major speech by secretary of state james baker following up a proposal made in january by australian prime minister bob <unk> + the baker proposal <unk> washington 's intention to continue playing a leading political role in the region + in asia as in europe a new order is taking shape mr. baker said + the u.s. with its regional friends must play a crucial role in designing its architecture + but maintaining u.s. influence will be difficult in the face of japanese dominance in the region + japan not only <unk> the u.s. in investment flows but also <unk> it in trade with most southeast asian countries although the u.s. remains the leading trade partner for all of asia + moreover the japanese government now the world 's largest aid <unk> is pumping far more assistance into the region than the u.s. is + while u.s. officials voice optimism about japan 's <unk> role in asia they also convey an <unk> of caution + there 's an understanding on the part of the u.s. that japan has to expand its functions in asia says j. michael <unk> undersecretary of commerce for trade + if they approach it with a <unk> <unk> attitude there will be a net gain for everyone + some asian nations are <unk> about washington 's demand that tokyo step up its military spending to ease the u.s. security burden in the region + the issue is further complicated by uncertainty over the future of the u.s. 's leases on military bases in the philippines and by a possible u.s. troop reduction in south korea + many <unk> regard a u.s. presence as a desirable <unk> to japanese influence + no one wants the u.s. to pick up its <unk> and go home mr. <unk> says + for their part taiwan and south korea are expected to step up their own investments in the next decade to try to slow the japanese <unk> + they do n't want japan to <unk> the region and <unk> it up says <unk> lee professor of east asian politics at the university of pennsylvania + <unk> rice could hardly believe her eyes + while giving the comprehensive test of basic skills to ninth <unk> at greenville high school last march N she spotted a student looking at <unk> sheets + she had seen cheating before but these notes were <unk> + a <unk> is an example of a profession in trade and finance + at the end of world war ii germany surrendered before japan + the <unk> conference committee is used when a bill is passed by the house and senate in different forms + virtually word for word the notes matched questions and answers on the <unk> section of the test the student was taking + in fact the student had the answers to almost all of the N questions in that section + the student surrendered the notes but not without a protest + my teacher said it was ok for me to use the notes on the test he said + the teacher in question was nancy yeargin considered by many students and parents to be one of the best at the school + confronted mrs. yeargin admitted she had given the questions and answers two days before the examination to two <unk> geography classes + she had gone so far as to display the questions on an overhead <unk> and <unk> the answers + mrs. yeargin was fired and prosecuted under an unusual south carolina law that makes it a crime to breach test security + in september she pleaded guilty and paid a $ N fine + her alternative was N days in jail + her story is partly one of personal <unk> + she was an <unk> teacher who won <unk> and inspired students but she will probably never teach again + in her wake she left the <unk> and anger of a principal who was her friend and now calls her a <unk> of colleagues who say she brought them shame of students and parents who defended her and insist she was treated <unk> and of <unk> officials stunned that despite the <unk> nature of her actions she became something of a local <unk> + mrs. yeargin 's case also <unk> some light on the dark side of school reform where pressures on teachers are growing and where <unk> testing has enhanced the temptation to <unk> + the N statute mrs. yeargin violated was designed to enforce provisions of south carolina 's <unk> laws + prosecutors alleged that she was trying to bolster students ' scores to win a bonus under the state 's N education improvement act + the bonus depended on her ability to produce higher <unk> scores + there is incredible pressure on school systems and teachers to raise test scores says walt <unk> an education professor and testing specialist at boston college + so efforts to beat the tests are also on the rise + and most disturbing it is educators not students who are blamed for much of the wrongdoing + a <unk> study released in september by friends for education an <unk> n.m. <unk> group concluded that outright cheating by american educators is common + the group says standardized achievement test scores are greatly inflated because teachers often teach the test as mrs. yeargin did although most are never caught + evidence of widespread cheating has surfaced in several states in the last year or so + california 's education department suspects adult responsibility for <unk> at N schools that changed wrong answers to right ones on a statewide test + after numerous <unk> of questionable teacher help to students texas is <unk> its security practices + and sales of <unk> booklets for classroom instruction are booming + these materials including <unk> school publishing co. 's scoring high and learning materials are nothing short of sophisticated <unk> sheets according to some recent academic research + by using them teachers with administrative blessing telegraph to students <unk> the precise areas on which a test will concentrate and sometimes give away a few exact questions and answers + use of scoring high is widespread in south carolina and common in greenville county mrs. yeargin 's school district + experts say there is n't another state in the country where tests mean as much as they do in south carolina + under the state 's education improvement act low test scores can block students ' promotions or force entire districts into <unk> <unk> <unk> that can mean <unk> + high test scores on the other hand bring recognition and extra money a new computer lab for a school grants for special projects a bonus for the <unk> + and south carolina says it is getting results + since the reforms went in place for example no state has posted a higher rate of improvement on the <unk> <unk> test than south carolina although the state still posts the lowest average score of the about N states who use the sat as the primary college <unk> examination + critics say south carolina is paying a price by stressing improved test scores so much + friends of education rates south carolina one of the worst seven states in its study on academic cheating + says the organization 's founder john <unk> <unk> mrs. yeargin is a way for administrators to protect themselves and look like they take cheating seriously when in fact they do n't take it seriously at all + paul <unk> director of testing for the south carolina department of education says mr. <unk> 's allegations of cheating are <unk> without foundation and based on unfair <unk> + partly because of worries about potential abuse however he says the state will begin keeping closer track of <unk> preparation booklets next spring + south carolina 's reforms were designed for schools like greenville high school + standing on a <unk> hill in a <unk> area of this old textile city the school has educated many of south carolina 's best and <unk> including the state 's last two governors nobel prize winning <unk> charles <unk> and actress <unk> <unk> + but by the early 1980s its glory had faded like the yellow bricks of its broad <unk> + it was full of violence and gangs and kids cutting class says linda ward the school 's principal + crime was awful test scores were low and there was no <unk> in <unk> programs + mrs. ward took over in N becoming the school 's seventh principal in N years + her immediate predecessor suffered a nervous breakdown + prior to his term a teacher <unk> to death in the halls <unk> by a student + <unk> mrs. ward says the school was having trouble serving in harmony its two <unk> and evenly split student groups a <unk> white elite from old <unk> neighborhoods and blacks many of them poor from <unk> inner city neighborhoods + mrs. ward resolved to clean out <unk> in the school 's faculty and restore safety and she also had some new factors working in her behalf + one was statewide school reform which raised overall educational funding and <unk> in a new public spirit for school <unk> + another was nancy yeargin who came to greenville in N full of the energy and ambitions that reformers wanted to reward + being a teacher just became my life says the <unk> mrs. yeargin a teacher for N years before her dismissal + i loved the school its history + i even <unk> about school and new things to do with my students + while mrs. ward fired and restructured staff and struggled to improve <unk> mrs. yeargin worked <unk> days and fast became a student favorite + in N and N she applied for and won bonus pay under the reform law + encouraged by mrs. ward mrs. yeargin taught honor students in the state teacher <unk> program a reform creation designed to encourage good students to consider teaching as a career + she won grant money for the school advised <unk> ran the <unk> club proposed and taught a new cultural <unk> class in western <unk> and was chosen by the school <unk> as teacher of the year + she was an <unk> lady she had it all together says <unk> <unk> a freshman at the university of south carolina who had mrs. yeargin in the <unk> class last year + she says that because of mrs. yeargin she gave up ambitions in architecture and is studying to become a teacher + mary beth <unk> a greenville <unk> <unk> also says mrs. yeargin inspired her to go into education + she taught us more in western <unk> than i 've ever learned in other classes says <unk> green a greenville senior + in the classroom students say mrs. yeargin distinguished herself by <unk> teaching approaches forcing kids to pair up to complete classroom work or using <unk> type <unk> + on <unk> she came to work to prepare study plans or sometimes even to polish the furniture in her classroom + she just never gave it up says mary <unk> mary beth 's mother + you 'd see her <unk> <unk> in the stands at a football game + some fellow teachers however viewed mrs. yeargin as <unk> and too yielding to students + mrs. ward says she often defended her to colleagues who called her a <unk> + pressures began to build + friends told her she was pushing too hard + because of deteriorating hearing she told colleagues she feared she might not be able to teach much longer + mrs. yeargin 's extra work was also helping her earn points in the state 's <unk> program + but the most important source of points was student improvement on tests + huge gains by her students in N and N meant a total of $ N in bonuses over two years a meaningful addition to her annual salary of $ N + winning a bonus for a third year was n't that important to her mrs. yeargin insists + but others at greenville high say she was eager to win if not for money then for pride and recognition + mary elizabeth <unk> another <unk> teacher says she believed mrs. yeargin wanted to keep her standing high so she could get a new job that would n't demand good hearing + indeed mrs. yeargin was interested in a possible job with the state teacher <unk> program + last march after attending a teaching <unk> in washington mrs. yeargin says she returned to greenville two days before annual testing feeling that she had n't prepared her <unk> geography students adequately + when test booklets were passed out N hours ahead of time she says she <unk> questions in the social studies section and gave the answers to students + mrs. yeargin admits she made a big mistake but insists her <unk> were correct + i was trying to help kids in an unfair testing situation she says + only five of the N questions were geography questions + the rest were history <unk> finance subjects they never had + mrs. yeargin says that she also wanted to help lift greenville high school 's overall test scores usually near the bottom of N district high schools in <unk> carried annually by local newspapers + mostly she says she wanted to prevent the damage to <unk> that her <unk> students would suffer from doing badly on the test + these kids broke my heart she says + a whole day goes by and no one even knows they 're alive + they desperately needed somebody who showed they <unk> for them who loved them + the last thing they needed was another <unk> blow + school officials and prosecutors say mrs. yeargin is lying + they found students in an advanced class a year earlier who said she gave them similar help although because the case was n't tried in court this evidence was never presented publicly + that pretty much <unk> any <unk> that she was out to help the poor <unk> child says joe watson the prosecutor in the case who is also president of greenville high school 's <unk> association + mrs. yeargin concedes that she went over the questions in the earlier class adding i wanted to help all students + mr. watson says mrs. yeargin never complained to school officials that the standardized test was unfair + do i have much <unk> for her mr. watson asks + not really + i believe in the system + i believe you have to use the system to change it + what she did was like taking the law into your own hands + mrs. ward says that when the cheating was discovered she wanted to avoid the <unk> public disclosure that a trial would bring + she says she offered mrs. yeargin a quiet resignation and thought she could help save her teaching certificate + mrs. yeargin declined + she said something like you just want to make it easy for the school + i was <unk> mrs. ward recalls + it was like someone had turned a <unk> in me + to the <unk> and <unk> of her <unk> and legal authorities and perhaps as a measure of the <unk> of standardized tests <unk> yeargin won widespread local support + the <unk> hearing at which she was dismissed was crowded with students teachers and parents who came to testify on her behalf + supportive callers <unk> unfair testing not mrs. yeargin on a local radio talk show on which she appeared + the show did n't give the <unk> of mrs. yeargin 's <unk> saying only that she helped students do better on the test + the message to the board of education out of all this is we 've got to take a serious look at how we 're doing our <unk> and our testing policies in this state said the <unk> host + <unk> in the greenville newspaper allowed that mrs. yeargin was wrong but also said the case showed how testing was being <unk> + the radio show <unk> us says mrs. ward + partly because of the show mr. watson says the district decided not to recommend mrs. yeargin for a first-time offenders program that could have <unk> the charges and the conviction from her record + and legal authorities <unk> up an investigation worthy of a murder case + over N witnesses mostly students were interviewed + at greenville high school meanwhile some students especially on the <unk> <unk> were crushed + it 's hard to explain to a <unk> why someone they like had to go says mrs. ward + soon <unk> appeared in the <unk> that carried the school 's familiar <unk> <unk> <unk> on the front + on the back the shirts read we have all the answers + many colleagues are angry at mrs. yeargin + she did a lot of harm says <unk> rice who had discovered the <unk> notes + we work damn hard at what we do for damn little pay and what she did cast unfair <unk> on all of us + but several teachers also say the incident <unk> doubt on the wisdom of evaluating teachers or schools by using standardized test scores + says <unk> key a <unk> teacher the incentive pay thing has opened up a can of <unk> + there may be others doing what she did + mrs. yeargin says she pleaded guilty because she realized it would no longer be possible to win <unk> and because she was afraid of further charges + mrs. ward for one was relieved + despite the strong evidence against mrs. yeargin popular sentiment was so strong in her favor mrs. ward says that i 'm afraid a jury would n't have convicted her + since <unk> first touched slate <unk> have wanted to know what 's on the test + these days students can often find the answer in <unk> <unk> and <unk> their teachers give them in the weeks prior to taking standardized achievement tests + the <unk> section of the widely used california achievement test asks fifth <unk> what is another name for the roman <unk> <unk> + it also asks them to add <unk> and <unk> + <unk> in a <unk> <unk> called learning materials sold to schools across the country by <unk> school publishing co. contain the same questions + in many other <unk> there is almost no difference between the real test and learning materials + what 's more the test and learning materials are both produced by the same company <unk> a joint venture of mcgraw-hill inc. and macmillan 's parent britain 's maxwell communication corp + close parallels between tests and practice tests are common some educators and researchers say + <unk> booklets software and <unk> are a booming publishing <unk> + but some practice products are so similar to the tests themselves that critics say they represent a form of <unk> cheating + if i took these preparation booklets into my classroom i 'd have a hard time <unk> to my students and parents that it was n't cheating says john <unk> a <unk> city mich. teacher who has studied test <unk> + he and other critics say such <unk> aids can defeat the purpose of standardized tests which is to gauge learning progress + it 's as if france decided to give only french history questions to students in a european history class and when everybody <unk> the test they say their kids are good in european history says john <unk> an <unk> n.m. <unk> and founder of an educational research organization friends for education which has studied standardized testing + standardized achievement tests are given about N million times a year across the country to students generally from <unk> through eighth grade + the most widely used of these tests are <unk> 's cat and comprehensive test of basic skills the iowa test of basic skills by <unk> <unk> co. and <unk> <unk> <unk> inc. 's metropolitan achievement test and stanford achievement test + sales figures of the <unk> materials are n't known but their reach into schools is significant + in arizona california florida louisiana maryland new jersey south carolina and texas educators say they are common classroom tools + <unk> says well over N million of its scoring high <unk> books have been sold since their introduction N years ago with most sales in the last five years + about N sets of learning materials teachers ' <unk> have also been sold in the past four years + the materials in each set reach about N students + scoring high and learning materials are the <unk> preparation tests + michael kean director of marketing for <unk> <unk> the <unk> division that publishes learning materials says it is n't aimed at improving test scores + he also asserted that exact questions were n't <unk> + when referred to the questions that matched he said it was <unk> + mr. <unk> the <unk> and william <unk> a michigan state university education professor concluded in a study last june that cat test versions of scoring high and learning materials should n't be used in the classroom because of their similarity to the actual test + they devised a <unk> scale <unk> one point for each <unk> measured on the cat test to rate the <unk> of test <unk> to the <unk> cat + because many of these <unk> the <unk> of <unk> figures metric measurement of volume or pie and bar <unk> for example are only a small part of the total <unk> <unk> mr. <unk> says the preparation <unk> would n't <unk> too many if their real intent was general instruction or even general <unk> with test procedures + but learning materials matched on N of N <unk> + scoring high matched on N + in cat sections where students ' knowledge of <unk> <unk> sounds is tested the authors noted that scoring high concentrated on the same sounds that the test does to the exclusion of other sounds that fifth <unk> should know + learning materials for the <unk> contains at least a dozen examples of exact matches or close parallels to test items + rick <unk> senior editor of scoring high says that messrs. <unk> and <unk> are ignoring the need students have for becoming familiar with tests and testing format + he said authors of scoring high <unk> avoid <unk> exact questions but he does n't deny that some items are similar + when scoring high first came out in N it was a publication of random house + mcgraw-hill was <unk> + in a N advisory to educators mcgraw-hill said scoring high should n't be used because it represented a parallel form of the cat and <unk> tests + but in N mcgraw-hill purchased the random house unit that publishes scoring high which later became part of <unk> + messrs. <unk> and kean say they are <unk> of any efforts by mcgraw-hill to modify or <unk> scoring high + <unk> corp. said it completed the acquisition of sacramento savings & loan association from the <unk> & <unk> c. <unk> foundation for $ N million + the <unk> s&l which has N branch offices in north central california had assets of $ N billion at the end of september + new york-based <unk> is an insurance and financial services concern + the purchase price includes two <unk> companies + the department of health and human services plans to extend its <unk> on federal funding of research involving fetal-tissue transplants + medical researchers believe the <unk> of small amounts of <unk> tissue into humans could help treat <unk> <unk> and such <unk> diseases as <unk> 's <unk> 's and <unk> 's + but anti-abortionists oppose such research because they worry that the development of <unk> using fetal-tissue transplants could lead to an increase in abortions + james mason assistant secretary for health said the ban on federal funding of fetal-tissue transplant research should be continued indefinitely + he said the ban wo n't stop privately funded <unk> research or federally funded fetal-tissue research that does n't involve transplants + department officials say that hhs secretary louis sullivan will support dr. mason 's ruling which will be issued soon in the form of a letter to the acting director of the national institutes of health + both dr. mason and dr. sullivan oppose federal funding for abortion as does president bush except in cases where a woman 's life is threatened + the controversy began in N when the national institutes of health aware of the policy implications of its research asked for an hhs review of its plan to <unk> <unk> tissue into the brain of a patient suffering from <unk> 's disease + the department placed a <unk> on the research pending a review of scientific legal and ethical issues + a majority of an <unk> panel recommended late last year that the research continue under carefully controlled conditions but the issue became <unk> in politics as anti-abortion groups continued to oppose federal funding + the dispute has hampered the administration 's efforts to recruit prominent doctors to fill prestigious posts at the helm of the nih and the centers for disease control + several candidates have withdrawn their names from consideration after administration officials asked them for their views on abortion and fetal-tissue transplants + antonio novello whom mr. bush <unk> to serve as surgeon general reportedly has assured the administration that she opposes abortion + dr. novello is deputy director of the national institute of child health and human development + some researchers have charged that the administration is imposing new ideological tests for top scientific posts + earlier this week dr. sullivan tried to <unk> these charges by stressing that candidates to head the nih and the <unk> will be <unk> by standards of scientific and administrative <unk> not politics + but the administration 's handling of the fetal-tissue transplant issue <unk> many scientists + when scientific progress moves into <unk> ground there has to be a role for society to make judgments about its applications says <unk> <unk> associate dean of the yale medical school + the disturbing thing about this abortion issue is that the debate has become <unk> so that no mechanism exists for finding a middle ground + yale is one of the few medical institutions conducting privately funded research on fetal-tissue transplants + but dr. <unk> warns that dr. mason 's ruling may discourage private funding + the <unk> of federal funds and the climate in which the decision was made certainly do n't provide any incentive for one of the more visible foundations to provide support he said + despite the <unk> over transplants federal funding of research involving <unk> <unk> will continue on a number of fronts + such research may ultimately result in the ability to <unk> damaged <unk> or to turn off genes that cause cancer or to regulate genes that cause down 's syndrome the leading cause of mental <unk> according to an nih summary + the nih currently spends about $ N million annually on fetal-tissue research out of a total research budget of $ N billion + <unk> hope that two new england states will allow broader interstate banking boosted nasdaq 's bank stocks but the over-the-counter market was up only slightly in lackluster trading + the nasdaq composite index added N to N on <unk> volume of N million shares + in terms of volume it was an <unk> beginning for november + yesterday 's share turnover was well below the year 's daily average of N million + in october the busiest month of the year so far daily volume averaged roughly N million shares + the nasdaq N index of the biggest <unk> stocks gained N to N + the index of the N largest nasdaq financial stocks rose modestly as well gaining N to N + but the broader nasdaq bank index which tracks thrift issues jumped N to N + the bank stocks got a boost when connecticut bank & trust and bank of new england said they no longer oppose pending legislation that would permit banks from other regions to merge with connecticut and massachusetts banks + the two banks merged in N + bank of new england 's shares are traded on the new york stock exchange + the stocks of banking concerns based in massachusetts were n't helped much by the announcement traders said because many of those concerns have financial problems tied to their real-estate loan portfolios making them <unk> takeover targets + but speculators anticipating that connecticut will approve a law permitting such interstate banking soon immediately bid up shares of connecticut banks on the news + a lot of the stocks that have been under water finally saw a reason to uptick said george <unk> head trader of banking issues in shearson lehman hutton 's otc department + the biggest <unk> was northeast bancorp which surged N N to N + the stamford conn. concern has agreed to a buy-out by bank of new york in a transaction with an indicated value of about $ N a share that expires next august + ed <unk> a <unk> conn. money manager who follows bank stocks said the announcement effectively gives the deal the green light + mr. <unk> said northeast bancorp also fared well because takeover stocks have returned to favor among investors + another otc bank stock involved in a buy-out deal first constitution financial was higher + it rose N to N N + first constitution has signed a merger agreement with <unk> l.p. and <unk> corp. under which all of its common shares will be acquired for $ N each or $ N million + among other connecticut banks whose shares trade in the otc market society for savings bancorp based in hartford saw its stock rise N N to N N + <unk> added N to N N shares of <unk> a new london-based bank holding company rose N to N N + among other banking issues <unk> savings association <unk> more than N N with a gain of N N to N N + the pennsylvania bank agreed to be acquired in a merger with <unk> corp. of pennsylvania for $ N a share + valley federal savings & loan a california thrift issue gained N to N N after reporting a third-quarter loss of $ N million after an $ N million pretax charge mostly related to its mobile home financing unit + dan e. <unk> valley federal 's president and chief executive officer said the one-time charge substantially <unk> future losses associated with the unit + he said the company 's core business remains strong + he also said that after the charges and assuming no dramatic <unk> in interest rates the company expects to achieve <unk> earnings in N + weisfield 's surged N N to N N and ratners group 's american depositary receipts or adrs gained N to N N + the two concerns said they entered into a definitive merger agreement under which ratners will begin a tender offer for all of weisfield 's common shares for $ N each + also on the takeover front jaguar 's adrs rose N to N N on turnover of N million + since the british auto maker became a takeover target last month its adrs have jumped about N N + after troubled heritage media proposed acquiring pop radio in a stock swap pop radio 's shares tumbled N to N N + heritage media which already owns about N N of pop radio proposed paying pop radio shareholders with shares of a new class of heritage media preferred stock that would be convertible into four shares of heritage media 's common + rally 's lost N N to N N + the restaurant operator said it has redeemed its rights issued monday under its shareholder rights plan + the fast-food company said its decision was based on discussions with a shareholder group giant group ltd. in an effort to resolve certain disputes with the company + giant group is led by three rally 's directors burt sugarman james m. trotter iii and william e. trotter ii who earlier this month indicated they had a N N stake in rally 's and planned to seek a majority of seats on rally 's <unk> board + sci systems slipped N to N on volume of N shares + the <unk> ala. electronic products maker said it expects to post a significant loss for its fiscal first quarter ended sept. N + in the year-earlier period sci had net income of $ N million or N cents a share on revenue of $ N million + the internal revenue service has threatened criminal sanctions against lawyers who fail to report detailed information about clients who pay them more than $ N in cash + the warnings issued to at least N criminal defense attorneys in several major cities in the last week have led to an outcry by members of the organized bar who claim the information is protected by <unk> privilege + the irs warnings stem from a N law that requires anyone who receives more than $ N in cash from a client or customer in one or more related transactions in the course of trade or business to report the payment on a document known as form N + the form asks for such details as the client 's name social security number <unk> number and details about the services provided for the payment + failure to complete the form had been punishable as a <unk> until last november when congress determined that the crime was a felony punishable by up to N years in prison + attorneys have argued since N when the law took effect that they can not provide information about clients who do n't wish their <unk> to be known + many attorneys have returned incomplete forms to the irs in recent years citing <unk> privilege + until last week the irs rarely acted on the incomplete forms + this form forces a lawyer to become in effect a witness against his client said neal r. <unk> president of the national association of criminal defense lawyers + the irs is asking lawyers to <unk> a criminal problem to the government added mr. <unk> a miami lawyer who has heard from dozens of attorneys who received letters in recent days and has himself received the <unk> irs forms sent by certified mail + mr. <unk> said that clients who pay cash may include alleged drug dealers who do n't have domestic bank accounts + these individuals may not necessarily be under investigation when they hire lawyers + mr. <unk> said there also may be other circumstances under which individuals would n't want the government to know they had retained criminal defense lawyers + filling out detailed forms about these individuals would tip the irs off and spark action against the clients he said + the defense lawyers ' group formed a task force this week <unk> by new york attorney gerald <unk> to deal with the matter + the american bar association 's house of delegates passed a resolution in N <unk> the irs reporting requirement + michael ross a new york lawyer who heads the aba 's grand jury committee said that lawyers are prohibited by the aba 's code of ethics from disclosing information about a client except where a court orders it or to prevent the client from committing a criminal act that could result in death + mr. ross said he met with officials of the irs and the justice department which would bring any enforcement actions against taxpayers to discuss the issue last may + at that meeting he said the justice department assured him that enforcement procedures would n't be threatened against attorneys without further review and advance notice + mr. ross said irs officials opposed the justice department 's moderate stance on the matter + but in the letters sent in recent days christopher j. <unk> of the irs computing center in detroit told attorneys that failing to voluntarily submit the requested information could result in <unk> enforcement action being initiated + in some cases the irs asked for information dating back to forms it received in N + a spokesman for the irs confirmed that there has been <unk> <unk> about incomplete <unk> but he declined to say why the letters were sent to lawyers now + individuals familiar with the justice department 's policy said that justice officials had n't any knowledge of the irs 's actions in the last week + lawyers worry that if they provide information about clients that data could quickly end up in the hands of prosecutors + prosecutors need court permission to obtain the tax returns of an individual or a business + but they have obtained N forms without court permission and used the information to help develop criminal cases + some criminal lawyers speculated that the irs was sending the letters to test the issue + in a number of recent cases federal courts have refused to recognize attorneys ' <unk> that information relating to fees from clients should be confidential + the war over federal judicial salaries takes a victim + often judges ease into more lucrative private practice with little fanfare but not federal judge <unk> a. ramirez in sacramento calif + on tuesday the judge called a news conference to say he was <unk> effective dec. N to join a san francisco law firm + the reason the refusal of congress to give federal judges a raise + a couple of my law <unk> were going to pass me in three or four years and i was afraid i was going to have to ask them for a loan the judge <unk> in an interview + federal judges make $ N annually in february congress rejected a bill that would have increased their pay by N N + judge ramirez N said it is <unk> for judges to make what they do + judges are not getting what they deserve + you look around at professional <unk> or accountants and nobody <unk> an eye + when you become a federal judge all of a sudden you are <unk> to a <unk> sum + at his new job as partner in charge of federal litigation in the sacramento office of <unk> <unk> & <unk> he will make out much better + the judge declined to discuss his salary in detail but said i 'm going to be a high-priced lawyer + <unk> <unk> union troubles are no laughing matter + <unk> <unk> trudeau is suing the writers guild of america east for $ N million alleging it mounted a campaign to <unk> and punish him for crossing a <unk> ' picket line + the dispute involves <unk> productions inc. a tv production company in which mr. trudeau is a <unk> + mr. trudeau a writers guild member also was employed as a writer for <unk> which was covered by a guild <unk> agreement + the guild began a strike against the tv and movie industry in march N + in his lawsuit mr. trudeau says the strike illegally included <unk> and the <unk> refused to honor the strike against the company + a spokesman for the guild said the union 's lawyers are reviewing the suit + he said disciplinary proceedings are confidential and declined to comment on whether any are being held against mr. trudeau + mr. trudeau 's attorney norman k. <unk> said the <unk> consists mainly of the guild 's <unk> threats of disciplinary action + mr. <unk> said a guild disciplinary hearing is scheduled next monday in new york + mr. <unk> who will go before the disciplinary panel said the proceedings are unfair and that any punishment from the guild would be <unk> + in addition to the damages the suit seeks a court order preventing the guild from <unk> or <unk> against mr. trudeau + abortion ruling upheld + a federal appeals court upheld a lower court ruling that the u.s. can bar the use of federal funds for <unk> programs that include <unk> services + a department of health and human services rule adopted in N prohibits the use of so-called title x funds for programs that assist a woman in obtaining an abortion such as abortion counseling and <unk> + the rule also prohibits funding for activities that encourage promote or advocate abortion + title x funds are the single largest source of federal funding for <unk> services according to the opinion by the second u.s. circuit court of appeals in new york + the panel ruled that the restrictions do n't violate the freedom of speech of health care <unk> and that the limits on counseling services do n't violate the rights of pregnant women + inquiry clears texas judge of bias in comments on homosexual murder victims + dallas district judge jack <unk> had sparked calls for a judicial inquiry with his remarks to the press last december two weeks after sentencing an <unk> defendant to N years in state prison for killing two homosexual men in a city park + the judge was quoted as referring to the victims as <unk> and saying they would n't have been killed if they had n't been <unk> the streets picking up <unk> boys + but robert r. murray a special master appointed by the texas supreme court said judge <unk> did n't breach any judicial standards of fairness although he did violate the state 's judicial code by commenting publicly on a pending case + <unk> that the judge has never <unk> any bias or <unk> mr. murray concluded that he would be <unk> in any case involving a homosexual or <unk> as a victim + mr. murray also said judge <unk> 's comments did n't <unk> the judiciary or the administration of justice + the report is subject to review by the state commission on judicial conduct which is <unk> to impose sanctions + gaf trial goes to round three + attorneys in the third <unk> trial of gaf corp. began opening arguments yesterday in the manhattan courtroom of u.s. district judge mary johnson lowe + in an <unk> indictment the government has charged gaf a wayne n.j. specialty chemical maker and its vice chairman james t. sherwin with attempting to manipulate the common stock of union carbide corp. in advance of gaf 's planned sale of a large block of the stock in november N + the first two gaf trials ended in <unk> earlier this year + this trial is expected to last five weeks + switching to the defense + a former member of the prosecution team in the <unk> affair joined the chicago firm of mayer brown & <unk> + michael r. <unk> a member since january N of the <unk> trial team in the prosecution of oliver north became a partner in the washington d.c. office of the <unk> firm + he will specialize in white-collar criminal defense work + mr. <unk> N also has served as deputy chief and chief of the narcotics unit for the u.s. attorney 's office for the southern district of new york based in manhattan + <unk> tire & rubber co. said it has reached an agreement in principle to buy buildings and related property in albany ga. from <unk> inc + terms were n't disclosed + the tire maker said the buildings consist of N million square feet of office manufacturing and <unk> space on N acres of land + fujitsu ltd. 's top executive took the unusual step of publicly <unk> for his company 's making bids of just one yen for several local government projects while computer rival nec corp. made a written <unk> for <unk> in the same practice + meanwhile business and government leaders <unk> the computer makers and <unk> about the broader statement the companies ' actions make about japanese <unk> pricing + fujitsu said it bid the equivalent of less than a u.s. penny on three separate municipal contracts during the past two years + the company also disclosed that during that period it offered N yen or about $ N for another contract + but fujitsu japan 's no. N computer maker is n't alone + nec one of its largest domestic competitors said it bid one yen in two separate public auctions since N + in both cases nec lost the contract to fujitsu which made the same bid and won a <unk> <unk> + all the contracts were for <unk> contracts and involved no hardware or software + the ministry of international trade and industry summoned executives from the companies to make sure they understood the concern about such practices according to a government spokesman + these cases lead to the loss of the firms ' social and international credibility a ministry statement said + japan 's fair trade commission has said it is considering investigating the bids for possible <unk> violations + we would like to <unk> for having caused huge trouble fujitsu president <unk> <unk> read from a prepared statement as he stood before a packed news conference at his company 's downtown headquarters + the bids he added were contrary to common sense + nec released a statement saying we feel sorry for having caused trouble to society a form of <unk> common in japan for companies caught in embarrassing situations + japanese companies have long had a reputation for <unk> short-term profits to make a sale that may have long-term benefits + but the growing controversy comes as many practices historically accepted as normal here such as politicians accepting substantial gifts from businessmen or having <unk> affairs are coming under close ethical scrutiny + the fire is also fueled by growing international interest in japanese behavior + so far there have been no public overseas complaints about the issue + but in one of the auctions in question international business machines corp. made a bid substantially higher than the fujitsu offer according to the <unk> + the <unk> bids touch on issues central to the increasingly <unk> trade debate + foreigners complain that they have limited access to government procurement in japan in part because japanese companies unfairly undercut them + the u.s. government in recent years has accused japanese companies of <unk> slashing prices on semiconductors and <unk> products fujitsu and nec make + asked whether the bidding <unk> would hurt <unk> relations mr. <unk> said this will be a minus factor + the <unk> controversy first came to a head last week when the city of hiroshima announced that fujitsu won a contract to design a computer system to <unk> its waterworks + the city had expected to pay about N million yen $ N but fujitsu essentially offered to do it for free + then wednesday fujitsu said it made a similar bid to win a library contract in <unk> <unk> two weeks earlier + it also said that in july it bid N yen to design a system for the <unk> <unk> library and two years ago it bid one yen to plan the telecommunications system for <unk> <unk> + the company said it has offered to withdraw its bids in hiroshima and <unk> + the municipalities said they have n't decided whether to try to force the company to go through with the contracts + fujitsu and nec said they were still investigating and that knowledge of more such bids could emerge + mr. <unk> insisted that headquarters had n't approved the bids and that he did n't know about most of the cases until wednesday + other major japanese computer companies contacted yesterday said they have never made such bids + one yen is not ethical <unk> <unk> an official at <unk> the japan federation of economic organizations said + profit may be low but at least costs should be covered + papers + <unk> group inc. agreed to acquire atlantic publications inc. which has N community papers and annual sales of $ N million + terms were n't disclosed + <unk> is a closely held media firm run by former cbs inc. president john <unk> + tv + price communications corp. completed the sale of four of its tv stations to <unk> inc. for $ N million in cash and notes retaining a N N equity stake in the new concern + <unk> was formed by <unk> communications corp. and <unk> capital + <unk> stores inc. which owns and operates a chain of specialty retail stores said october sales rose N N to $ N million from $ N million a year earlier + sales in stores open more than one year rose N N to $ N million from $ N million + furukawa co. of japan said it will acquire two construction machinery plants and a sales unit in france formerly <unk> to <unk> industries inc. of the u.s. + the company said it made the purchase in order to locally produce <unk> operated <unk> + last october the company also bought a <unk> manufacturing plant in <unk> west germany from <unk> + furukawa said the purchase of the french and german plants together will total about N billion yen $ N million + structural dynamics research corp. which makes <unk> engineering software said it introduced new technology in mechanical design <unk> that will improve mechanical engineering productivity + <unk> + money market <unk> N N + a average rate paid yesterday by N large banks and thrifts in the N largest metropolitan areas as compiled by bank rate monitor + b current annual yield + guaranteed minimum N N + lsi logic corp. reported a surprise $ N million third-quarter net loss including a special restructuring charge that reflects a continuing <unk> slowdown in semiconductor demand + in september the <unk> maker said excess capacity and lagging billings would result in an estimated $ N million to $ N million net loss for the third quarter + but company officials said yesterday that they decided to take a $ N million pretax charge for the period to cover a restructuring of world-wide manufacturing operations citing extended weakness in the market as well as a decision to switch to more <unk> production techniques + over the summer months there has been a slowing in the rate of new orders from the computer sector our primary market said wilfred j. <unk> chairman and chief executive officer + in addition recent industry forecasts for N indicate a slow environment at least until midyear + as a result the company said it decided to phase out its oldest capacity and make appropriate reductions in operating expenses + the $ N million net loss <unk> N cents a share + not counting the extraordinary charge the company said it would have had a net loss of $ N million or seven cents a share + a year earlier it had profit of $ N million or N cents a share + revenue rose N N to $ N million from $ N million + the charge partly reflects a switch from older <unk> to <unk> <unk> silicon <unk> with which to <unk> chips + related to that decision the company said it was converting its santa clara calif. factory to a research and development facility + a spokesman declined to speculate about possible reductions in force + this is a company that has invested in capacity additions more aggressively than any other company in the industry and now the industry is growing more slowly and they are suddenly poorly positioned said michael stark chip analyst at robertson <unk> & co + i think the stock is dead money for a while + yesterday 's announcement was made after markets closed + u.s. chip makers are facing continued slack demand following a traditionally slow summer + part of the problem is that chip buyers are keeping inventories low because of jitters about the course of the u.s. economy + <unk> co <unk> lake n.j + william g. <unk> former chairman and chief executive officer of general public utilities corp. was elected a director of this maker of industrial and construction equipment increasing board membership to N + the dollar posted gains against all major currencies yesterday buoyed by persistent japanese demand for u.s. bond issues + while market sentiment remains cautiously bearish on the dollar based on sluggish u.s. economic indicators dealers note that japanese demand has helped <unk> the dollar against the yen and has kept the u.s. currency from plunging below key levels against the mark + at the same time dealers said the u.s. unit has been locked into a relatively narrow range in recent weeks in part because the hefty japanese demand for dollars has been offset by the mark 's strength resulting in a <unk> + jay <unk> with capital insight inc. reasons that while the mark has posted significant gains against the yen as well the mark climbed to N yen from N yen late tuesday in new york the strength of the u.s. bond market compared to its foreign counterparts has helped lure investors to dollar-denominated bonds rather than mark bonds + <unk> trade is the driving force in the market said tom <unk> a vice president with banque paribas in new york but i 'm not convinced it will continue + who knows what will happen down the road in three to six months if foreign investment starts to erode + in late new york trading yesterday the dollar was quoted at N marks up from N marks late tuesday and at N yen up from N yen late tuesday + sterling was quoted at $ N down from $ N late tuesday + in tokyo thursday the u.s. currency opened for trading at N yen up from wednesday 's tokyo close of N yen + douglas madison a corporate trader with bank of america in los angeles <unk> the dollar 's recent solid performance against the yen to purchases of securities by japanese insurance companies and trust banks and the sense that another wave of investment is waiting in the wings + he contends that the perception in japan of a <unk> u.s. response to sony corp. 's announcement of its purchase of columbia pictures entertainment inc. has been temporarily <unk> + he cites the recent deal between the mitsubishi estate co. and the rockefeller group as well as the possible white knight role of an undisclosed japanese company in the georgia-pacific corp. takeover bid for great northern nekoosa corp. as evidence + the <unk> maturity in november of a 10-year japanese government <unk> bond issue valued at about $ N billion has prompted speculation in the market that investors <unk> the bonds will diversify into dollar-denominated instruments according to mr. madison + it remains unclear whether the bond issue will be rolled over + meanwhile traders in tokyo say that the prospect of lower u.s. interest rates has spurred dollar buying by japanese institutions + they point out that these institutions want to lock in returns on high-yield u.s. treasury debt and suggest demand for the u.s. unit will continue <unk> until rates in the u.s. <unk> + the market again showed little interest in further evidence of a slowing u.s. economy and traders note that the market in recent weeks has taken its <unk> more from wall street than u.s. economic indicators + dealers said the dollar merely drifted lower following the release wednesday of the u.s. purchasing managers ' report + the managers ' index which measures the health of the manufacturing sector stood at N N in october above september 's N N and also above average forecasts for the index of N N + some dealers said the dollar was pressured slightly because a number of market participants had boosted their expectations in the past day and were looking for an index above N which indicates an expanding manufacturing economy + but most said the index had no more than a minimal effect on trade + on the commodity exchange in new york gold for current delivery settled at $ N an ounce down N cents + estimated volume was a moderate N million ounces + in early trading in hong kong thursday gold was quoted at $ N an ounce + the cosby show may have <unk> turned around ratings at nbc since its debut in N and the <unk> family still keeps millions of viewers laughing thursday night on the network + but some of the tv stations that bought cosby reruns for record prices two years ago are n't laughing much these days + the reruns have helped ratings at many of the N network affiliates and independent tv stations that air the shows + but the ratings are considerably below expectations and some stations say they may not buy new episodes when their current contracts expire + meanwhile stations are <unk> because many of them say the show 's distributor viacom inc. is giving an <unk> either sign new long-term commitments to buy future episodes or risk losing cosby to a competitor + at the same time viacom is trying to persuade stations to make commitments to a different world a <unk> of cosby whose reruns will become available in N + viacom denies it 's using pressure tactics + we 're willing to negotiate says dennis <unk> executive vice president of marketing + we 're offering this plan now because we feel it 's the right time + but says the general manager of a network affiliate in the midwest i think if i tell them i need more time they 'll take cosby across the street + viacom 's move comes as the <unk> market is being flooded with situation <unk> that are still running on the networks + one station manager says he believes viacom 's move is a <unk> strike because the company is worried that cosby ratings will continue to drop in <unk> over the next few years + cosby is down a full ratings point in the week of oct. N over the same week a year ago according to a.c. nielsen co + mr. <unk> at viacom says the ratings are rising + and executives at stations in such major markets as washington <unk> r.i. cleveland <unk> n.c. minneapolis and louisville ky. say they may very well not renew cosby + dick <unk> the general manager of <unk> the <unk> station in miami for example says the show has been a major disappointment to us + at the prices we were charged there should have been some return for the dollar + there was n't + neil <unk> the general manager of <unk> the cbs affiliate in louisville says cosby gets the station 's highest ratings and he 's pleased + but he adds i feel pressured disappointed uncomfortable and frankly quite angry with viacom + the life insurance co. of georgia has officially opened an office in taipei + david <unk> the company 's representative in taiwan said atlanta-based life of georgia will sell conventional life-insurance products + life of georgia is part of the <unk> <unk> group based in the netherlands + in this era of <unk> competition for ad dollars a lot of <unk> magazines are getting pretty <unk> with advertisers <unk> over them in articles and offering pages of <unk> space + so can a magazine survive by downright <unk> its nose at major advertisers + garbage magazine billed as the practical journal for the environment is about to find out + founded by brooklyn n.y. publishing entrepreneur <unk> <unk> garbage made its debut this fall with the promise to give consumers the straight <unk> on the u.s. waste crisis + the magazine combines <unk> pieces on topics like <unk> <unk> <unk> <unk> on such things as what happens after you flush your toilet and <unk> pieces on alleged environmental offenders + garbage editors have dumped considerable energy into a <unk> <unk> through supermarket <unk> in a bid to identify corporate america 's good guys and bad boys + in one feature called in the <unk> editors point out a product they <unk> to be a particularly bad <unk> + from an advertising standpoint the problem is these offenders are likely to be some of the same folks that are major magazine advertisers these days + with only two issues under its belt garbage has <unk> some would-be advertisers and raised the <unk> of others + campbell soup for one is <unk> its <unk> <unk> microwave product was <unk> in the premiere in the <unk> column + the magazine 's editors ran a giant <unk> of the product with <unk> pointing to the packaging 's <unk> foam <unk> and <unk> film all plastic items they say are <unk> + it 's precisely the kind of product that 's created the municipal landfill monster the editors wrote + i think that this magazine is not only called garbage but it is practicing <unk> garbage <unk> a spokesman for campbell soup + he says campbell was n't even contacted by the magazine for the opportunity to comment + modifications had been made to the <unk> <unk> product at the time the issue was printed he says making it less an <unk> than was portrayed + he admits though it is n't one of campbell soup 's better products in terms of <unk> + campbell soup not surprisingly does n't have any plans to <unk> in the magazine according to its spokesman + some media experts question whether a young magazine can risk turning off madison avenue 's big <unk> + you really need the campbell <unk> of the world to be interested in your magazine if you 're going to make a run of it says mike white senior vice president and media director at ddb needham chicago + the economics of magazine publishing pretty much require that you have a pretty solid base of big-time ad <unk> he adds + the first two issues featured ads from only a handful of big advertisers including general electric and <unk> coors but the majority were from companies like waste management inc. and <unk> international firms that do n't spend much money advertising and ca n't be relied on to support a magazine over the long haul + a waste management spokeswoman says its ad in the premiere issue was a one-time purchase and it does n't have any plans to <unk> in future issues + we do n't spend much on print advertising she says + but ms. <unk> the magazine 's editor and publisher contends garbage can survive at least initially on subscription revenues + individual copies of the magazine sell for $ N and yearly <unk> cost $ N + it is of course printed on recycled paper + according to ms. <unk> <unk> journal corp. her publishing company printed and sold all N copies of the premiere issue + the first and second issues sold out on <unk> she says and the magazine has orders for N <unk> + asked whether potential advertisers will be scared away by the magazine 's direct policy ms. <unk> replies i do n't know and i do n't care + i 'm not saying advertising revenue is n't important she says but i could n't sleep at night if the magazine bowed to a company because they once took out an ad + ad notes + interpublic on tv + interpublic group said its television programming operations which it expanded earlier this year agreed to supply more than N hours of original programming across europe in N + it said the programs largely game shows will be provided by its <unk> television unit along with <unk> international a producer and distributor of game shows of which it recently bought N N + it said that volume makes it the largest supplier of original tv programming in europe + interpublic is providing the programming in return for advertising time which it said will be valued at more than $ N million in N and $ N million in N + it plans to sell the ad time to its clients at a discount + new account + <unk> financial corp. philadelphia named <unk> palmer brown & <unk> philadelphia as agency of record for its $ N million account + the business had been handled by <unk> <unk> baltimore + at&t fax + american telephone & telegraph 's general business systems division new york awarded the ad account for its fax product line to ogilvy & mather new york a wpp group agency + billings were n't disclosed for the small account which had been <unk> at young & rubicam new york + first campaign + enterprise <unk> inc. breaks its first national ad campaign this week + the st. louis firm specializes in <unk> <unk> those provided by insurance companies for cars damaged in <unk> + developed by <unk> free & <unk> new york the $ N million campaign pitches enterprise 's <unk> service and its free <unk> and <unk> service + <unk> associates + young & rubicam said it completed its acquisition of <unk> associates a san francisco <unk> firm + acquisition + <unk> communications pittsburgh acquired <unk> & co. a los angeles <unk> and <unk> firm + terms were n't disclosed + sea containers ltd. said it might increase the price of its $ <unk> buy-back plan if pressed by temple holdings ltd. which made an earlier tender offer for sea containers + sea containers a hamilton <unk> shipping concern said tuesday that it would sell $ N billion of assets and use some of the proceeds to buy about N N of its common shares for $ N apiece + the move is designed to ward off a hostile takeover attempt by two european shipping concerns <unk> holding ag and <unk> plc + in may the two companies through their jointly owned holding company temple offered $ N a share or $ N million for sea containers + in august temple sweetened the offer to $ N a share or $ N million + yesterday sea containers ' chief executive officer james <unk> said in an interview that under the <unk> plan sea containers would end up with a cash surplus of approximately $ N million + about $ N million of that would be allocated to the buy-back leaving about $ N million he said + that $ N million mr. <unk> said gives us some flexibility in case temple raises its bid + we are able to increase our price above the $ N level if necessary + he declined to say however how much sea containers might raise its price + mr. <unk> speculated that the <unk> that sea containers has means that temple would have to substantially increase their bid if they 're going to top us + temple however <unk> criticized sea containers ' plan yesterday <unk> it as a highly conditional device designed to <unk> management <unk> shareholders and prevent them from accepting our superior cash offer + a spokesman for temple estimated that sea containers ' plan if all the asset sales <unk> would result in shareholders receiving only $ N to $ N a share in cash + the lower figures the spokesman said would stem from preferred shares being converted to common stock and the possibility that sea containers ' subsidiaries might be required to place their shares in the open market + temple added that sea containers is still mired in legal problems in <unk> where the supreme court has temporarily barred sea containers from buying back its own stock in a case brought by <unk> and <unk> + the court has indicated it will rule on the case by the end of the month + temple also said sea containers ' plan raises numerous legal regulatory financial and fairness issues but did n't elaborate + mr. <unk> said reaction to sea containers ' proposal has been very positive + in new york stock exchange composite trading yesterday sea containers closed at $ N up N cents + the transportation department responding to pressure from safety advocates took further steps to impose on light trucks and vans the safety requirements used for automobiles + the department proposed requiring stronger <unk> for light trucks and minivans beginning with N models + it also issued a final rule requiring auto makers to <unk> light trucks and minivans with <unk> belts for rear seats beginning in the N model year + such belts already are required for the vehicles ' front seats + today 's action transportation secretary samuel skinner said represents another <unk> in the ongoing program to promote vehicle <unk> safety in light trucks and minivans through its extension of passenger car standards + in september the department had said it will require trucks and minivans to be equipped with the same <unk> <unk> that have long been required on passenger cars + the big three auto makers said the rule changes were n't surprising because bush administration officials have long said they planned to impose car safety standards on light trucks and vans + safety advocates including some members of congress have been urging the department for years to extend <unk> requirements to light trucks and vans which now account for almost one-third of all vehicle sales in the u.s. + they say that many vehicles <unk> as commercial light trucks actually carry more people than cargo and therefore should have the same safety features as cars + they did n't have much luck during the reagan administration + but now there seems to be a fairly <unk> effort to address the problem said chuck <unk> vice president of communications for the insurance institute for highway safety + we 're in a very different regulatory environment + sen. john <unk> r. <unk> praised the department 's actions noting that <unk> crashes account for almost half of all <unk> deaths + we could prevent many of these <unk> with minimum <unk> standards he said + sen. <unk> and others also want the department to require additional safety equipment in light trucks and minivans including air bags or automatic seat belts in front seats and improved <unk> protection + the department 's <unk> proposal would apply to vehicles weighing N pounds or less + the <unk> would be required to withstand a force of N times the <unk> weight of the vehicle + during the test the <unk> could n't be depressed more than five inches + in detroit a chrysler corp. official said the company currently has no <unk> <unk> and shoulder belts in its light trucks but plans to begin <unk> them in by the end of the N model year + he said chrysler fully expects to have them installed across its <unk> line by the sept. N N deadline + chrysler said its trucks and vans already meet the <unk> resistance standard for cars + john <unk> executive engineer of ford motor co. 's <unk> office said ford trucks have met car standards for <unk> resistance since N + ford began <unk> the <unk> belts in trucks with its <unk> crew <unk> <unk> in the N model year + the new <unk> <unk> vehicle set for introduction next spring will also have the <unk> belts + mr. <unk> said he expects ford to meet the deadline easily + consolidated rail corp. said it would spend more than $ N million on N <unk> <unk> for <unk> autos + the <unk> <unk> scheduled for delivery in N will be made by <unk> manufacturing co. a chicago heights ill. division of closely held <unk> industries inc. <unk> ill + this year the railroad holding company acquired N such <unk> + sir peter walters <unk> chairman of british petroleum co. until next march joins the board of this cement products company on dec. N + sir peter will succeed sir john <unk> N who <unk> as blue circle nonexecutive chairman on june N + bank of new england corp. said it has held talks with potential merger partners outside new england although it added that nothing is imminent and it has n't received any formal offers + the discussions were disclosed as the bank holding company said that it has dropped its longstanding opposition to full interstate banking bills in connecticut and in massachusetts + later yesterday a massachusetts senate committee approved a bill to allow national interstate banking by banks in the state beginning in N + currently both massachusetts and connecticut where most of bank of new england 's operations are allow interstate banking only within new england + richard <unk> vice chairman of bank of new england told the dow jones professional investor report certainly there are those outside the region who think of us <unk> as a good partner + we have and i 'm sure others have considered what our options are and we 've had conversations with people who in the future might prove to be interesting partners + he added there 's nothing very hot + mr. <unk> did n't elaborate about who the potential partners were or when the talks were held + a bank spokeswoman also declined to comment on any <unk> matters but said the company decided to drop its opposition to the interstate banking legislation because prevailing sentiment is in favor of passage + bank of new england has been hit hard by the region 's real-estate slump with its net income declining N N to $ N million or N cents a share in the first nine months of N from the year-earlier period + the company recently said it would sell some operations and lay off N N of its work force altogether reducing employment to less than N from about N + it recently signed a preliminary agreement to negotiate exclusively with the bank of tokyo ltd. for the sale of part of its leasing business to the japanese bank + <unk> products inc. cut its quarterly dividend to five cents a share from N cents a share + the reduced dividend is payable jan. N to stock of record dec. N + the <unk> <unk> maker of hair accessories and other cosmetic products said it cut the dividend due to its third-quarter loss of $ N or N cents a share + in the year-ago quarter the company reported net income of $ N million or N cents a share + the company also adopted an anti-takeover plan + michael henderson <unk> group chief executive of this u.k. metals and industrial materials maker will become chairman in may succeeding ian butler N who is retiring + mr. butler will remain on the board as a nonexecutive director + rally 's inc. said it has redeemed its rights outstanding issued monday in its shareholder rights plan + the company said holders of stock of record nov. N will receive <unk> of one cent a share as the redemption payment + the fast-food company said its decision was based upon discussions with a shareholder group giant group ltd. in an effort to resolve certain disputes with the company + giant group is led by three rally 's directors burt sugarman james m. trotter iii and william e. trotter ii who last month indicated they hold a N N stake in rally 's and plan to seek a majority of seats on rally 's <unk> board + when warren <unk> <unk> of <unk> 's leap wine <unk> in <unk> valley announced a $ N price tag for his N <unk> N cabernet this fall few wine shops and restaurants around the country balked + this is the peak of my <unk> experience mr. <unk> declared when he introduced the wine at a dinner in new york and i wanted to single it out as such + it is in my <unk> the best wine <unk> 's leap has produced and with fewer than N cases available it is sure to sell quickly + the price is a new high for california cabernet <unk> but it is not the highest + diamond creek N lake <unk> cabernet weighed in this fall with a <unk> price of $ N a bottle + one of the fastest growing segments of the wine market is the category of <unk> wines limited in production of <unk> quality or so perceived at any rate and with <unk> high prices + for years this group included a stable of <unk> <unk> first <unk> <unk> <unk> <unk> <unk> grand <unk> <unk> <unk> and la <unk> <unk> <unk> <unk> <unk> or <unk> <unk> <unk> sweet wines <unk> <unk> or <unk> <unk> from germany and <unk> <unk> <unk> from <unk> + these first magnitude wines ranged in price from $ N to $ N a bottle + in the last year or so however this exclusive club has taken in a host of flashy new members + the <unk> have <unk> in price to meet the competition and it almost seems that there 's a race on to come up with the <unk> single bottle among current releases from every major wine region on the globe + france can <unk> the lion 's share of high-priced bottles + <unk> 's first <unk> from N and N are $ N to $ N each except for the smallest in terms of production <unk> <unk> which costs around $ N + these prices seem rather modest however in light of other french wines from current <unk> + <unk> <unk> the leading <unk> now goes for well over $ N a bottle for a lighter vintage like N the <unk> rich N runs $ N + in champagne some of the prestige <unk> are <unk> toward $ N a bottle + the first champagne to crack that price barrier was the N salon de <unk> <unk> de <unk> + the <unk> salon is $ N + <unk> <unk> at $ N a bottle sells out around the country and <unk> 's <unk> de champagne <unk> de <unk> is <unk> upon that level + the great <unk> of the <unk> valley have soared in price as well + e. <unk> 's N <unk> <unk> la <unk> for example is $ N + none of france 's wine regions can steal a march on <unk> however + the six wines of the <unk> de la <unk> N of the most precious acres of <unk> anywhere in the world have <unk> <unk> price <unk> for several years now + with the N vintage they soared higher la <unk> $ N <unk> $ N <unk> $ N + another small <unk> estate <unk> has just offered its N <unk> for $ N + from italy there is angelo <unk> <unk> at $ N a bottle <unk> <unk> 's la <unk> a $ N cabernet from <unk> and <unk> <unk> at $ N + spain 's <unk> <unk> <unk> N released only in its <unk> year is $ N as is australia 's <unk> <unk> N + there are certain <unk> wines that can command these higher prices says larry shapiro of <unk> 's one of the largest wine shops in dallas + what 's different is that it is happening with young wines just coming out + we 're seeing it partly because older <unk> are growing more scarce + wine auctions have almost exhausted the limited supply of those wines mr. shapiro continued we 've seen a dramatic decrease in demand for wines from the <unk> and <unk> which go for $ N to $ N a bottle + some of the newer wines even at $ N to $ N a bottle or so almost offer a bargain + take lake <unk> cabernet from diamond creek + it 's made only in years when the <unk> <unk> perfectly the last was N and comes from a single <unk> of <unk> that yielded a mere N cases in N + owner al <unk> originally planned to sell it for $ N a bottle but when a retailer in southern california asked is that wholesale or retail he <unk> the matter + offering the wine at roughly $ N a bottle wholesale $ N retail he sent merchants around the country a form asking them to check one of three answers N no the wine is too high N responses N yes it 's high but i 'll take it N responses N i 'll take all i can get N responses + the wine was shipped in <unk> cases instead of the usual N but even at that it was spread thin going to N retailers in N states + we thought it was <unk> expensive said sterling <unk> wine director at <unk> 's in <unk> ill. one of the top stores in suburban chicago but there are people out there with very different opinions of value + we got our two <unk> and they 're gone + mr. <unk> <unk> that he thinks <unk> prices have come about because producers do n't like to see a hit wine dramatically increase in price later on + even if there is consumer resistance at first a wine that wins high ratings from the critics will eventually move + there may be <unk> reaction initially said mr. <unk> but as the wine is talked about and starts to sell they eventually get excited and decide it 's worth the <unk> price to add it to their collection + it 's just sort of a <unk> thing with some people added larry shapiro + they like to talk about having the new red rock <unk> one of diamond creek 's <unk> or the dunn N cabernet or the <unk> + producers have seen this market opening up and they 're now creating wines that appeal to these people + that explains why the number of these wines is expanding so rapidly + but consumers who buy at this level are also more knowledgeable than they were a few years ago + they wo n't buy if the quality is not there said <unk> martin of martin wine <unk> in new orleans + or if they feel the wine is <unk> and they can get something equally good for less + mr. martin has increased prices on some wines like <unk> hills <unk> now $ N just to slow down movement but he is beginning to see some resistance to high-priced red <unk> and <unk> and <unk> in the $ N to $ N range + image has of course a great deal to do with what sells and what does n't and it ca n't be forced + wine merchants ca n't keep <unk> <unk> in stock but they have to push salon <unk> <unk> even lowering the price from $ N to $ N + it 's hardly a question of quality the N salon is a beautiful wine but as mr. <unk> noted people have their own ideas about value + it 's interesting to find that a lot of the expensive wines are n't always walking out the door + in every major market in the u.s. for instance you can buy <unk> la <unk> or <unk> virtually all of the first growth <unk> except <unk> as well as <unk> one and <unk> from california and at the moment the <unk> 's leap N <unk> N + with the biggest <unk> period of the year looming as the holidays approach it will be interesting to see how the <unk> fare + by january it should be fairly clear what 's hot and what 's not + ms. <unk> is a free-lance wine writer in new york + signs of a slowing economy are increasing pressure on the federal reserve to cut short-term interest rates but it is n't clear whether the central bank will do so + a survey by the fed 's N district banks shows economic growth has been sluggish in recent weeks while upward pressures on prices have <unk> + the economy is clearly slowing says robert black president of the richmond federal reserve bank + if you look at the third quarter as posting roughly N N growth i do see some slowing in the fourth quarter agrees kansas city fed president roger <unk> + nevertheless both mr. <unk> and mr. black say the slowdown so far is no cause for concern + we 're coming closer to <unk> the stated objective of slowing the economy to a point where hopefully some downward trend in prices will occur said mr. <unk> + bush administration officials are looking to the fed to bring down rates and financial markets seem to be expecting easier credit as well + i think the market had been expecting the fed to ease sooner and a little more than it has to date said robert johnson vice president of global markets for bankers trust co + the fed cut the key federal funds interest rate by about N percentage point to N N after the oct. N stock market plunge but has shown no sign of movement since + the report from the fed found that manufacturing in particular has been weak in recent weeks + the philadelphia fed for instance reported that manufacturing activity continues to decline for the fourth month in a row + and in the chicago district the report said a manufacturer of capital goods noted slower orders for some types including defense equipment petroleum equipment food packaging machinery and material handling equipment + retail sales also were reported slow in most districts particularly for discretionary <unk> items such as furniture home appliances and consumer electronics + and construction also was described as slow in most areas + despite the economic slowdown there are few clear signs that growth is coming to a halt + as a result fed officials may be divided over whether to ease credit + several fed governors in washington have been pushing for easier credit but many of the regional fed presidents have been <unk> such a move + mr. black said he is pleased with the economy 's recent performance and does n't see a lot of excesses out there that would tilt us into recession + there is always a chance of recession added mr. <unk> but if you ask me to put a percentage on it i would think it 's well below a N N chance + <unk> hotel & restaurant co. said its planned rights offering to raise about $ N million was declared effective and the company will begin mailing materials to shareholders at the end of this week + under the offer shareholders will receive one right for each N common shares owned + each right <unk> the shareholder to buy $ N face amount of N N bonds due N and warrants to buy N common shares at N cents a share + the rights which expire nov. N can be exercised for $ N each + <unk> which owns and operates hotels said that <unk> group inc. has agreed to exercise any rights that are n't exercised by other shareholders + <unk> a cleveland merchant bank owns about N N of <unk> + <unk> corp. a specialty steelmaker said N workers at a plant in <unk> ohio began a strike after the united steelworkers local N rejected a new contract on tuesday + the previous contract between <unk> 's ohio steel tube division and the union expired at midnight tuesday + the union vote to reject the proposed pact was N + <unk> said it does n't expect a <unk> strike + it said it has taken measures to continue shipments during the work <unk> + the treasury said it plans to sell $ N billion in notes and bonds next week but said the auctions will be postponed unless congress acts quickly to lift the federal debt ceiling + michael <unk> deputy assistant secretary for federal finance said the treasury may wait until late monday or even early tuesday to announce whether the <unk> are to be <unk> + unless it can raise money in financial markets mr. <unk> said the federal government wo n't have the cash to pay off $ N billion in treasury bills that mature on thursday + without congressional action the treasury ca n't sell any new securities even savings bonds + but despite <unk> <unk> over the debt ceiling which has become <unk> in the fight over cutting capital-gains taxes congress is almost certain to act in time to avoid default + each day that congress fails to act will cause additional disruption in our borrowing schedule possibly resulting in higher interest costs to the taxpayer treasury secretary nicholas brady said in a speech prepared for delivery last night to a group of bankers + to avoid these costs and a possible default immediate action is <unk> + the securities to be sold next week will raise about $ N billion in cash and redeem $ N billion in maturing notes + the new securities part of the federal government 's regular quarterly refunding will consist of + $ N billion of three-year notes to be auctioned tuesday and to mature nov. N N + $ N billion of 10-year notes to be auctioned wednesday and to mature nov. N N + $ N billion of 30-year bonds to be auctioned thursday and to mature aug. N N + the treasury also said it plans to sell $ N billion in <unk> cash management bills on thursday + they will mature dec. N + none of the securities will be eligible for when-issued trading until congress approves an increase in the debt ceiling clearing the way for a formal offering mr. <unk> said + the treasury said it needs to raise $ N billion in the current quarter in order to end december with a $ N billion cash balance + auctions held in october and those scheduled for next week will raise a total of $ N billion + the remaining $ N billion could be raised through the sale of short-term treasury bills two-year notes in november and five-year notes in early december the treasury said + in the first three months of N the treasury estimates that it will have to raise between $ N billion and $ N billion assuming that it decides to aim for a $ N billion cash balance at the end of march + lancaster colony corp. said it acquired <unk> foods inc. in a cash transaction + terms were n't disclosed + <unk> a maker and marketer of frozen <unk> and <unk> pasta based in <unk> iowa has annual sales of about $ N million lancaster said + investors took advantage of tuesday 's stock rally to book some profits yesterday leaving stocks up fractionally + bond prices and the dollar both gained modestly + the dow jones industrial average finished less than a point higher to close at N in moderate trading + but advancing issues on the new york stock exchange were <unk> ahead of declining stocks N to N + long-term bond prices rose despite prospects of a huge new supply of treasury debt this month + continuing demand for dollars from japanese investors boosted the u.s. currency + analysts were disappointed that the enthusiasm investors showed for stocks in the wake of georgia-pacific 's $ N billion bid for great northern nekoosa <unk> so quickly + the industrial average jumped more than N points tuesday as speculators rushed to buy shares of potential takeover targets + but with the end of the year in sight money managers are eager to take profits and cut their risks of losing what for many have been exceptionally good returns in + economic news had little effect on financial markets + as expected a national purchasing managers ' report indicated the nation 's manufacturing sector continues to contract modestly + the federal reserve 's <unk> book a summary of economic conditions across the country indicated that the overall economy remains in a pattern of sluggish growth + in major market activity + stock prices rose fractionally in moderate trading + big board volume totaled N million shares + bond prices were up + the treasury 's benchmark 30-year bond gained about a quarter of a point or $ N for each $ N of face amount + the yield fell to N N + the dollar rose + in late afternoon new york trading the currency was at N marks and N yen compared with N marks and N yen + mitsui mining & <unk> co. posted a N N rise in pretax profit to N billion yen $ N million in its fiscal first half ended sept. N compared with N billion yen a year earlier + net income more than tripled to N billion yen from N billion yen a year earlier + eaton corp. said it sold its pacific sierra research corp. unit to a company formed by employees of that unit + terms were n't disclosed + pacific sierra based in los angeles has about N employees and supplies professional services and advanced products to industry + eaton is an automotive parts controls and aerospace electronics concern + investor harold simmons and nl industries inc. offered to acquire georgia gulf corp. for $ N a share or about $ N billion stepping up the pressure on the commodity chemicals concern + the offer follows an earlier proposal by nl and mr. simmons to help georgia gulf restructure or go private in a transaction that would pay shareholders $ N a share + georgia gulf rebuffed that offer in september and said it would study other alternatives + however it has n't yet made any proposals to shareholders + late yesterday georgia gulf said it reviewed the nl proposal as well as interests from third parties regarding business <unk> + georgia gulf said it has n't eliminated any alternatives and that discussions are being held with interested parties and work is also continuing on other various transactions + it did n't elaborate + analysts saw the latest offer as proof that mr. simmons an aggressive and persistent investor wo n't leave georgia gulf alone until some kind of transaction is completed + he has <unk> on their <unk> like a pit bull says paul <unk> a vice president with morgan stanley & co + he appears to be in it for the long haul + mr. simmons and nl already own a N N stake in georgia gulf + mr. simmons owns N N of valhi inc. which in turn owns two-thirds of nl + nl is officially making the offer + mr. <unk> was n't surprised by the lower price cited by nl saying he believes that $ N a share is the most you can pay for georgia gulf before it becomes a bad acquisition + georgia gulf stock rose $ N a share yesterday to close at $ N a share while nl shares closed unchanged at $ N and valhi rose N cents to $ N all in new york stock exchange composite trading + j. <unk> martin nl president and chief executive officer said nl and mr. simmons cut the price they were proposing for georgia gulf because they initially planned a transaction that included about $ N million in equity and a substantial amount of high-yield subordinated debt + however the junk-bond market has collapsed in recent weeks <unk> the likelihood that such a transaction would succeed + now he said the group plans to put in several hundred million dollars in equity and finance the remainder with bank debt + he also said that the group reduced its offer because it was n't allowed to see georgia gulf 's confidential financial information without agreeing that it would n't make an offer unless it had georgia gulf 's consent + in a letter to georgia gulf president jerry r. <unk> mr. martin asked georgia gulf to answer its offer by tuesday + it was n't clear how nl and mr. simmons would respond if georgia gulf <unk> them again + mr. martin said they have n't yet decided what their next move would be but he did n't rule out the possibility of a consent solicitation aimed at replacing georgia gulf 's board + in other transactions mr. simmons has followed friendly offers with a hostile tender offer + although georgia gulf has n't been eager to negotiate with mr. simmons and nl a specialty chemicals concern the group apparently believes the company 's management is interested in some kind of transaction + the management group owns about N N of the stock most purchased at nominal prices and would stand to gain millions of dollars if the company were sold + in the third quarter georgia gulf earned $ N million or $ N a share down from $ N million or $ N a share on fewer shares outstanding + sales fell to $ N million from $ N million + a licensing company representing the university of pennsylvania added johnson & johnson to its lawsuit challenging a university faculty member over rights to <unk> <unk> medicine + university patents inc. based in <unk> conn. said it seeks johnson & johnson 's profits from sales of <unk> estimated at $ N million a similar amount of punitive damages and the right to license <unk> elsewhere + in may university patents filed a suit in federal court in philadelphia against albert m. <unk> a researcher and professor at the university of pennsylvania school of medicine who developed <unk> in the 1960s to combat <unk> + dr. <unk> <unk> the medicine while employed by the university but later licensed the <unk> to a division of johnson & johnson + in new <unk> n.j. a johnson & johnson spokesman declined comment + criticism in the u.s. over recent japanese acquisitions is looming ever larger in the two countries ' relations + officials from both nations say the u.s. public 's <unk> about japanese investment could color a second round of <unk> economic talks scheduled for next week in washington + not that washington and tokyo disagree on the japanese acquisitions indeed each has come out in favor of <unk> investment in the u.s. + where they disagree is on the subject of u.s. direct investment in japan + the u.s. wants the removal of what it <unk> as barriers to investment japan denies there are real barriers + the <unk> talk <unk> up by recent japanese investments in the u.s. is focusing attention on the differences in investment climate even though it 's only one of many subjects to be covered in the <unk> talks known as the structural <unk> initiative + the japanese should see this rhetoric as a signal of the need for a change in their own economy says charles <unk> u.s. assistant treasury secretary who has been in tokyo this week <unk> discussing the impending negotiations with government and business leaders + we have a long history of maintaining an open <unk> policy mr. <unk> says + u.s. investors should have a greater opportunity at direct investment in japan + the japanese <unk> openly about the u.s. public 's <unk> + one clear sign of japan 's nervousness came this week when a spokesman for japan 's foreign ministry devoted nearly all of a regular half-hour briefing for foreign journalists to the subject of recent japanese investments in the u.s. + we believe that it is <unk> important for those japanese business interests in the u.s. to be more aware of the <unk> and concerns of the american people said the spokesman <unk> <unk> + at the same time though he <unk> the media for paying such close attention to japanese investment when other foreign countries notably britain are acquiring more american assets + fears that japanese investors are buying up america have <unk> sharply in the past several weeks with sony corp. 's purchase of columbia pictures entertainment inc. from coca-cola co. and mitsubishi estate co. 's acquisition of a N N holding in rockefeller group the owner of some of <unk> manhattan 's most exclusive real estate + even before those moves added fuel the fires of <unk> had been well <unk> by the highly publicized experience in japan of one u.s. investor t. boone pickens jr + the texas <unk> has acquired a N N stake valued at more than $ N billion in an <unk> company <unk> manufacturing co + but he has failed to gain any influence at the company + <unk> has refused to grant mr. pickens seats on its board <unk> he is a <unk> trying to pressure <unk> 's other shareholders into buying him out at a profit + mr. pickens made considerable political <unk> with his troubles in japan + the senate finance committee <unk> by a fellow <unk> democratic sen. lloyd <unk> last month urged u.s. trade representative carla hills to use mr. pickens 's experience in talks with tokyo to highlight this problem facing americans who seek access to the japanese capital markets + while mr. <unk> and japanese officials say the question of investors ' access to the u.s. and japanese markets may get a disproportionate share of the public 's attention a number of other important economic issues will be on the table at next week 's talks + among them are differences in savings and investment rates corporate structures and management and government spending + each side has a <unk> of recommendations for the other + the u.s. says it is anxious for results + we feel very strongly that we really need action across the full range of issues we 've identified and we need it by next spring mr. <unk> says + both sides have agreed that the talks will be most successful if negotiators start by focusing on the areas that can be most easily changed + but they have n't <unk> what those might be + after the first set of meetings two months ago some u.s. officials complained that japan had n't come up with specific changes it was prepared to make + the japanese <unk> that the first round was too early to make concessions + just to say the distribution system is wrong does n't mean anything says a ministry of international trade and industry official + we need to clarify what exactly is wrong with it + that process of <unk> out <unk> is likely to take time the japanese say no matter how badly the u.s. wants quick results + for instance at the first meeting the two sides could n't even agree on basic data used in price discussions + since then a team of about N <unk> and u.s. commerce department officials have crossed the globe <unk> consumer prices + by monday they hope to have a <unk> of documents both sides can trust + little by little there is progress says the <unk> official + both sides are taking action + <unk> <unk> contributed to this article + while worry grows about big japanese investments in the u.s. japan 's big trading companies are rapidly increasing their stake in america 's smaller business + for japan the controversial trend improves access to american markets and technology + but for small american companies it also provides a growing source of capital and even marketing help + take the deal with candela laser corp. a <unk> mass. manufacturer of high-tech medical devices which three years ago set its sights on japan as an export market + partly to help clear the <unk> obstacles facing any overseas company trying to <unk> japan tiny candela turned to mitsui & co. one of japan 's largest trading companies for investment + in a joint-venture deal mitsui <unk> candela through tokyo 's bureaucratic <unk> + it eventually secured ministry of health import approval for two candela laser products one that breaks up kidney stones and another that <unk> skin <unk> + at last count candela had sold $ N million of its medical devices in japan + the deal also gave mitsui access to a high-tech medical product + they view this as a growth area so they went about it with a <unk> approach says richard <unk> a candela vice president + indeed for many japanese trading companies the favorite u.s. small business is one whose research and development can be <unk> for future japanese use + the japanese companies <unk> many small u.s. companies with promising products or ideas frequently putting their money behind projects that commercial banks wo n't touch + japanese companies have financed small and medium-sized u.s. firms for years but in recent months the pace has taken off + in the first half of N alone japanese corporations invested $ N million in minority positions in u.s. companies a N N rise from the figure for all of N reports venture economics inc + the needham mass. concern tracks investments in new businesses + in addition of course some of the japanese investments involved outright purchase of small u.s. firms + heightened japanese interest in american small business parallels an acceleration of investments giving japanese companies control of large highly visible u.s. corporations such as columbia pictures entertainment inc + only this week it was announced that mitsubishi estate co. had acquired a N N stake in rockefeller group which owns new york 's prestigious rockefeller center + while the small deals are far less <unk> they add to japanese <unk> of the u.s. market + as the deals also improve japanese access to american technology and market knowledge they feed american <unk> in this area too + even a <unk> product like plate glass can catch a trading company 's fancy if there 's a strategic fit + free state glass industries of <unk> va. a small <unk> of architectural glass was <unk> under its original management + last year mitsubishi international corp. the new york-based arm of mitsubishi corp. bought controlling interest in the glass company in a joint venture with ronald <unk> a glass industry executive and mitsubishi consultant + the deal is <unk> designed to give mitsubishi a window on the u.s. glass industry says <unk> <unk> an executive in mitsubishi 's general merchandise department in new york + it 's not just a simple investment in a small company mr. <unk> says + we want to see the glass market from the inside not the outside + mitsubishi 's investment in free state is very small less than $ N million mr. <unk> says + mr. <unk> declines to comment on the arrangement + trading companies such as mitsubishi mitsui c. <unk> & co. and <unk> corp. which make many of the japanese investments in small u.s. concerns have no u.s. counterpart + these <unk> integrated combines some of which got their start in japan 's <unk> period deal <unk> in commodities construction and manufacturing + they operate ships and banks + all the <unk> are looking for new business says arthur <unk> adviser to the president of mitsui u.s.a. using the japanese term for the largest of the global trading houses + adds <unk> <unk> senior vice president of c. <unk> america inc. we have a great interest in making investments particularly in new ventures + a host of electronics firms in california 's silicon valley were financed with <unk> venture capital + profit at least in the short term is usually a secondary goal + strategic objectives not financial return drive many of the deals says a venture economics spokesman + in investing on the basis of future transactions a role often performed by merchant banks trading companies can cut through the <unk> that <unk> owners often face with their local commercial banks + it 's the classic problem of the small businessman says malcolm <unk> managing director of trading alliance corp. of new york + people are <unk> at the door to take his product but he does n't have the working capital to make the thing and commercial banks are very <unk> + they want assets they want a balance sheet which has no <unk> to the business a company can generate + adds mitsui 's mr. <unk> unlike corporations in this country trading companies are n't so much interested in a high return on investment as they are on increasing trade flows + to the extent they can do this they 're quite content to get a return on investment of N N to N N + mr. <unk> says mitsui has N u.s. subsidiaries in which it holds N N interest or more and the trading company hopes to double the number of its u.s. affiliates in N + sales by these subsidiaries in the fiscal year ending last march were more than $ N billion + a N N to N N return on $ N billion ai n't <unk> mr. <unk> says + hudson general corp. 's president and chief executive officer alan j. <unk> resigned + mr. <unk> N years old could n't be reached for comment + a company spokesman declined to elaborate on the departure + hudson general which provides maintenance fueling and other services to airlines and airports reported a loss for its most recent fiscal year and last month omitted the semiannual dividend on its common shares + mr. <unk> who had been with the company more than N years and had been president since N will act as a consultant to hudson general + his duties as chief executive will be assumed by chairman jay b. <unk> + for N years <unk> <unk> went to her neighborhood bank because it was convenient + a <unk> customer that banks <unk> for she did n't give much thought to the rates she was receiving nor to the fees she was paying + but in august first atlanta national bank introduced its crown account a package designed to lure customers such as ms. <unk> + among other things it included checking safe deposit box and credit card all for free plus a good deal on installment loans + all she had to do was put $ N in a certificate of deposit or qualify for a $ N personal line of credit + i deserve something for my loyalty she says + she took her business to first atlanta + so it goes in the competitive world of consumer banking these days + for nearly a decade banks have <unk> for customers primarily with the interest rates they pay on their deposits and charge on their loans + the competitive rates were generally offset by hefty fees on various services + but many banks are turning away from strict price competition + instead they are trying to build customer loyalty by <unk> their services into packages and targeting them to small segments of the population + you 're dead in the water if you are n't <unk> the market says anne moore president of <unk> research corp. a bank consulting firm in atlanta + ncnb corp. of charlotte n.c. recently introduced its financial connections program aimed at young adults just starting careers + the program not only offers a <unk> car loan up to $ N but throws in a special <unk> statement to help in saving money + in september union <unk> corp. of memphis tenn. launched the edge account a package designed for the <unk> crowd with services that include a credit card and line of credit with no annual fees and a full percentage point off on installment loans + the theory such individuals many with young children are in their prime borrowing years and having borrowed from the bank they may continue to use it for other services in later years + for some time banks have been aiming packages at the elderly the <unk> segment with the highest savings + those efforts are being stepped up + <unk> macdonald vice president of retail sales at barnett banks inc. of <unk> fla. says the company now targets <unk> within the market by <unk> its popular seniors partners program to various life styles + <unk> age geography and <unk> differences create numerous <unk> ms. macdonald says + she says individual barnett branches can add different benefits to their seniors partners package such as athletic activities or travel clubs to appeal to local market interests + an active <unk> in <unk> <unk> may care more about senior olympic games while a <unk> in panama city may care more about a <unk> on health she says + banks have tried packaging before + in N wells fargo & co. of san francisco launched the gold account which included free checking a credit card <unk> box and travelers checks for a $ N monthly fee + the concept <unk> a slew of <unk> but the banks stopped promoting the packages + one big reason thin margins + many banks particularly smaller ones were slow to <unk> and could n't target market <unk> that would have made the programs more profitable + as banks ' earnings were squeezed in the mid-1970s the emphasis switched to finding ways to cut costs + but now computers are enabling more banks to analyze their customers by age income and geography + they are better able to get to those segments in the wake of the deregulation that began in the late 1970s + deregulation has effectively removed all restrictions on what banks can pay for deposits as well as opened up the field for new products such as <unk> cds + where a bank once offered a standard <unk> savings account it began offering money-market accounts certificates of deposit and <unk> checking and staggering rates based on the size of deposits + the competition has grown more intense as bigger banks such as <unk> corp. of minneapolis and chemical banking corp. of new york extend their market-share <unk> into small towns across the nation + today a banker is worrying about local regional and <unk> banks as well as thrifts and credit unions says ms. moore at <unk> research + so people who were n't even thinking about targeting N years ago are scrambling to define their customer base + the competition has <unk> a much <unk> consumer + the average household will spread N accounts over a dozen financial institutions says michael p. sullivan who runs his own bank consulting firm in charlotte n.c + this much <unk> makes attracting and keeping today 's <unk> customers costly + packages encourage loyalty by rewarding customers for doing the bulk of their banking in one place + for their troubles the banks get a larger <unk> audience that is less likely to move at the drop of a rate + the more accounts customers have mr. sullivan says the more likely they are to be attracted to a package and to be loyal to the bank that offers it + that can pay off down the road as customers especially the younger ones change from borrowers to <unk> + packaging has some <unk> + the additional technology personnel training and promotional effort can be expensive + chemical bank spent more than $ N million to introduce its <unk> line several packages aimed at different segments in N according to thomas jacob senior vice president of marketing + it 's not easy to roll out something that comprehensive and make it pay mr. jacob says + still bankers expect packaging to <unk> primarily because more customers are demanding that financial services be tailored to their needs + these days banking customers walk in the door expecting you to have a package especially for them ms. moore says + some banks are already moving in that direction according to alvin t. sale marketing director at first union corp. in charlotte + first union he says now has packages for seven customer groups + soon it will split those into N + says mr. sale i think more banks are starting to realize that we have to be more like the department store not the <unk> + iras + <unk> inc. said it will <unk> a registration statement filed with the securities and exchange commission to <unk> a plan to sell N newly issued common shares + the chandler ariz. company said it will <unk> the registration to cover only the N million warrants each exercisable for the purchase of one common share + currently <unk> has about N million common shares outstanding + <unk> develops and markets low-cost software peripheral equipment and accessories for computers + five things you can do for $ N or less + N buy a new chevrolet + N take a <unk> vacation + N send your child to a university + N buy a diamond <unk> + N make a lasting difference in the regulatory life of an american savings-and-loan association through the foster corporate parents plan + americans today spend $ N like <unk> change they do n't think much about it + but for an ailing savings-and-loan association <unk> on <unk> it can lead to safety from imminent demise and to a future full of promise + your $ N will help keep a <unk> savings and loan <unk> and out of the federal budget deficit + as a foster corporate parent you 'll be helping a neighborhood s&l in areas crucial to its survival + like healthy regulatory capital + a steady deposit base + performing loans + at the same time you 'll give your foster savings institution the gift of hope and freedom from the federal regulators who want to close its doors for good + as a foster corporate parent you will experience the same <unk> felt by robert bass lewis <unk> william simon and others who find ways to help troubled savings institutions and their employees help themselves + that builds confidence <unk> <unk> not to mention critical regulatory net worth + do n't wait a savings institution needs your help now + every day you delay a savings institution 's health and the federal budget deficit grows worse + think about the good you can do for just $ N a month about the cost of a <unk> chevrolet or two <unk> at a state university + then send your support to a savings institution that has taken a bad <unk> in the press and on its bottom line + every $ N you send will go a long way to boost sagging net worth and employee morale and keep your foster savings institution off the federal budget deficit + mr. <unk> is a lawyer in new york + the chicago mercantile exchange said it plans to institute an additional circuit breaker aimed at stemming market <unk> + separately john phelan told a closed house subcommittee meeting in washington that he would support securities and exchange commission halts of program trading during market <unk> + but the new york stock exchange chairman said he does n't support <unk> a collar on program trading arguing that firms could get around such a limit + the chicago merc said a new one-hour price limit would take effect in its standard & poor 's N stock-index futures pit once s&p N futures fell N index points the equivalent of about a <unk> drop in the dow jones industrial average + if the <unk> limit is triggered after N p.m chicago time it would remain in effect until the normal close of trading at N p.m + with the limit in effect members would be able to execute trades at the limit price or at higher prices but not below it + the exchange said it decided a new circuit breaker was needed following a review of the tumultuous trading in stocks and stock-index futures on friday oct. N when the dow jones industrials plunged N points and stock-index futures prices skidded as well + late that afternoon the s&p N stock-index futures contract fell a total of N index points hitting a merc circuit breaker limit that remained in effect for the rest of the trading session + the merc said that its existing <unk> <unk> limit on s&p N stock-index futures trading equal to about N points on the dow jones industrials which was triggered oct. N will remain in effect + leo <unk> merc executive committee chairman said that the <unk> limit appeared to <unk> the selling panic oct. N + but when the contract reopened the subsequent flood of sell orders that quickly knocked the contract down to the <unk> limit indicated that the intermediate limit of N points was needed to help keep stock and stock-index futures prices <unk> + several traders maintained that the merc 's <unk> <unk> <unk> the market slide oct. N by <unk> additional selling pressure to the floor of the new york stock exchange + all of the changes require regulatory approval which is expected shortly + the exchange also said that the <unk> circuit breaker which currently provides only a one-hour <unk> during market <unk> will become the maximum one-day limit for the s&p N stock-index futures contract the one-day limit now is N index points + a final <unk> was made to the <unk> opening limit for the contract + the merc said that <unk> limit will remain in effect for the first N minutes of trading + the limit <unk> under current exchange rules if contracts trade above the limit price during the opening N minutes of trading + in washington house aides said mr. phelan told congressmen that the collar which banned program trades through the big board 's computer when the dow jones industrial average moved N points did n't work well + he said that firms could get around the collar by executing trades <unk> + in a <unk> news conference mr. phelan who has publicly expressed concern about market volatility said he told the house finance and telecommunications subcommittee that he would support the program-trading halt proposal providing the sec would be comfortable with the language in a bill + the program-trading issue is heating up on capitol hill as it is on wall street and several legislators want to grant the sec the power to shut off the programs when trading becomes too volatile + sec chairman richard breeden has said he would be willing to consider circuit breakers that have <unk> trigger points but he does n't want discretionary power to stop programs + a house aide suggested that mr. phelan was so vague and <unk> that it was the kind of meeting where people of all <unk> could come out feeling good + at one point mr. phelan angered the subcommittee 's chairman rep. edward markey d. mass. by not going much beyond what already had been reported in the morning newspapers + markey said we could have done this in public because so little sensitive information was disclosed the aide said + mr. phelan then responded that he would have been happy just writing a report to the panel the aide added + at another point during the hearing rep. markey asked mr. phelan what would be discussed at a new york exchange board meeting today + mr. phelan said the big board is likely to study the program-trading issue + that response <unk> rep. markey house aides said and the congressman snapped back that there had been enough studies of the issue and that it was time for action on the matter + <unk> of the N subcommittee members attended the hearing most notably rep. john dingell d. mich. the full house energy and commerce committee chairman who has been willing to let mr. markey carry the legislation in recent months + mr. dingell expressed concern sources said about <unk> problems in <unk> program trading which uses futures to offset stock trades + the futures industry is regulated by the commodity futures trading commission which reports to the agriculture committees in both houses + the art of <unk> is <unk> to the english and like most english <unk> <unk> to the rest of the world + <unk> l. <unk> the nine <unk> + <unk> england + of all scenes that <unk> rural england this is one of the <unk> an ancient stone church stands amid the fields the sound of bells <unk> from its tower calling the <unk> to <unk> + the <unk> of st. michael and all angels stop to <unk> at the church door as members here always have + in the tower five men and women pull <unk> on ropes attached to the same five bells that first sounded here in N + but there is also a <unk> modern note in <unk> though it ca n't be heard by the <unk> enjoying the <unk> of bells this cool autumn evening + like most of the other N <unk> in britain with sets of bells st. michael once had its own band of ringers who would herald every sunday morning and evening service + now only one local ringer remains <unk> <unk> hammond + the others here today live elsewhere + they belong to a group of N ringers including two <unk> and four youngsters in training who drive every sunday from church to church in a <unk> effort to keep the bells <unk> in the many <unk> of east <unk> + to ring for even one service at this tower we have to <unk> says mr. hammond a retired <unk> worker + we 've tried to train the youngsters but they have their <unk> and their <unk> and they just <unk> away + mr. hammond worries that old age and the <unk> of youth will <unk> the ranks of the east <unk> group that keeps the <unk> bells <unk> + history after all is not on his side + according to a nationwide survey taken a year ago nearly a third of england 's church bells are no longer <unk> on <unk> because there is no one to ring them + it is easy to see why the ancient art is on the ropes + the less complicated version of playing <unk> on bells as do the <unk> of continental europe is considered by the english to be <unk> fit only for foreigners + <unk> a <unk> exercise the english invented N years ago requires physical <unk> some bells weigh more than a ton combined with intense mental concentration + proper english bells are started off in <unk> from the <unk> bell to the lowest a simple <unk> scale using in larger <unk> as many as N bells + then at a signal the ringers begin <unk> the order in which the bells sound without <unk> the steady <unk> of the striking + each <unk> or change can occur only once the rules state + ringers <unk> patterns of changes known as methods which have <unk> names like kent <unk> bob major or <unk> <unk> + a series of N or so changes is a <unk> and takes about three hours + a look at a thursday night practice at st. mary <unk> church in the <unk> district of london gives an idea of the work involved + ten <unk> ringers stand in a circle one foot ahead of the other in a <unk> 's stance each pulling a <unk> that disappears through a small hole in the high ceiling of the ringing chamber + no one speaks and the <unk> of the ropes seems to make as much sound as the bells themselves <unk> by the ceiling + totally absorbed the ringers <unk> straight ahead using peripheral vision they call it <unk> to watch the other ropes and thus time their pulls + far above in the <unk> the huge <unk> bells mounted on wheels swing <unk> through a full N degrees starting and ending surprisingly in the <unk> or <unk> position + skilled ringers use their <unk> to advance or <unk> the next swing so that one bell can swap places with another in the following change + in a well-known <unk> involving church bells english novelist <unk> l. <unk> described ringing as a passion that finds its satisfaction in <unk> <unk> and mechanical <unk> + ringers she added are filled with the <unk> <unk> that comes of <unk> <unk> <unk> performed + ringing does become a bit of an <unk> admits <unk> <unk> master of the band at st. mary <unk> and one of england 's best female ringers + it is a passion that usually stays in the tower however + more often than not ringers think of the church as something stuck on the bottom of the <unk> + when their changes are completed and after they have worked up a sweat ringers often <unk> off to the local <unk> leaving <unk> for others below + this does not sit well with some <unk> + with membership of the church of england steadily <unk> <unk> <unk> are pressing equally <unk> and often <unk> ringers to attend services + two years ago the rev. <unk> <unk> vicar of great <unk> <unk> got so fed up with ringers who did n't attend service he <unk> the entire band the ringers promptly set up a picket line in protest + they were a <unk> club that treated the tower as sort of a separate premises the vicar <unk> says + an entirely new band <unk> today at great <unk> several of whom are members of the <unk> + but there still are n't enough ringers to ring more than six of the eight bells + at st. mary 's church in <unk> <unk> the bells have fallen silent following a <unk> over church attendance + the vicar <unk> jones refuses to talk about it saying it would reopen the wound + but <unk> marshall vicar of a nearby church feels the fault is in the <unk> from the bell tower that are located next to the <unk> + so crunch crunch crunch bang bang bang here come the ringers from above making a very obvious exit while the <unk> is at <unk> he says + vicar marshall admits to mixed feelings about this issue since he is both a vicar and an active <unk> himself + the sound of bells is a net to draw people into the church he says + i live in hopes that the ringers themselves will be drawn into that <unk> life + the central council of church bell ringers a sort of parliament of ringing groups aims to improve relations with <unk> says john c. baldwin president + it hopes to speak to students at <unk> colleges about the <unk> of bell ringing and will shortly publish a <unk> for every vicar in the country entitled the bells in your care + says mr. baldwin we recognize that we may no longer have as high a priority in church life and experience + mr. baldwin is also attacking the greater problem lack of ringers + one survey says that of the N trained <unk> in england today only N of them still ring + also ringers do n't always live where the bells need to be <unk> like in small rural <unk> and inner-city <unk> + but the council 's program to attract and train ringers is only partly successful says mr. baldwin + right now we 're lucky if after five years we keep one new ringer out of N he adds + one bright sign is that a growing number of women have entered the once <unk> field more than a third of the ringers today are women + they are n't accepted everywhere however + the oldest <unk> group in the country the ancient society of college <unk> founded in N remains <unk> a fact that 's particularly <unk> to women because the group is the sole source of ringers for britain 's most prestigious <unk> st. paul 's <unk> and <unk> <unk> + this being britain no woman has filed an <unk> suit but the extent of the problem surfaced this summer in a series of letters to the ringing world a weekly newspaper for ringers + one writer signing his letter as <unk> balanced male <unk> on the frequency of women <unk> in <unk> and suggested that they settle back into their traditional role of making tea at meetings + in the <unk> of replies that followed one woman ringer from <unk> observed that the average male ringer leaves quite a lot to be <unk> badly dressed <unk> with <unk> and a large <unk> frequently <unk> and <unk> <unk> in <unk> + another women wrote from <unk> to say that in her N years of ringing i have never known a lady to <unk> in the <unk> + i have seen one or two men die <unk> them + investors unsettled by the stock market 's gyrations can take some comfort in the predictable <unk> of quarterly dividend checks + that has been particularly true this year with many companies raising their payouts more than N N + but do n't <unk> too easy those dividend increases may signal trouble ahead for stock prices some analysts warn + in the past they say the strongest dividend growth has often come at times when the stock-market party was almost over + that can be a trap for <unk> investors says richard bernstein senior <unk> analyst at merrill lynch & co + strong dividend growth he says is the black widow of valuation a reference to the female <unk> that attract males and then kill them after <unk> + stephen boesel president of t. rowe price growth and income fund explains that companies raise their payouts most <unk> only after the economy and corporate profits have been growing for some time + invariably those strong periods in the economy give way to <unk> environments he says + and <unk> environments are n't <unk> to the stock market + indeed analysts say that payouts have sometimes risen most sharply when prices were already on their way down from cyclical <unk> + in N for example dividends on the stocks in standard & poor 's 500-stock index soared N N following much slower growth the year before + the s&p index started sliding in price in september N and fell N N in N despite a N N expansion in dividends that year + that pattern has n't always held but recent strong growth in dividends makes some market watchers anxious + payouts on the s&p N stocks rose N N in N according to standard & poor 's corp. and wall street estimates for N growth are generally between N N and N N + many people believe the growth in dividends will slow next year although a minority see double-digit gains continuing + meanwhile many market watchers say recent dividend trends raise another warning flag while dividends have risen <unk> their expansion has n't kept pace with even stronger advances in stock prices + as a result the market 's dividend yield dividends as a percentage of price has slid to a level that is fairly low and <unk> by historical standards + put another way the decline in the yield suggests stocks have gotten pretty rich in price relative to the dividends they pay some market analysts say + they are keeping a close watch on the yield on the s&p N + the figure is currently about N N up from N N before the recent market slide + some analysts say investors should run for the <unk> if a sustained market rebound <unk> the yield below N N + a drop below that N N benchmark has always been a strong warning sign that stocks are fully valued says mr. boesel of t. rowe price + in fact the market has always <unk> + always + there 's never been an exception says gerald w. <unk> a chicago investment adviser and money manager based on a review of six decades of stock-market data + the last time the s&p N yield dropped below N N was in the summer of N + stockholders who took the hint and sold shares escaped the october debacle + there have been only seven other times in N N N N N N and N when the yield on the s&p N dropped below N N for at least two consecutive months mr. <unk> found + and in each case he says a sharp drop in stock prices began within a year + still some market analysts say the current N N reading is n't as troublesome as it might have been in years past + it 's not a very meaningful indicator currently because corporations are not <unk> in a traditional manner says james h. <unk> head of stock investments for cigna corp. the <unk> insurer + in particular mr. <unk> says businesses are paying out a smaller percentage of their profits and cash flow in the form of dividends than they have historically + so while stock prices may look fairly high relative to dividends they are not excessive relative to the underlying corporate strength + rather than increasing dividends some companies have used cash to buy back some of their shares notes steven g. einhorn <unk> of the investment policy committee at goldman sachs & co + he factors that into the market yield to get an adjusted yield of about N N + that is just a <unk> below the average of the past N years or so he says + what will happen to dividend growth next year + common wisdom suggests a <unk> rate of growth reflecting a weakening in the economy and corporate profits + painewebber inc. for instance is forecasting growth in s&p N dividends of just under N N in N down from an estimated N N this year + in other years in which there have been moderate economic <unk> the environment the firm expects in N the change in dividends ranged from a gain of N N to a decline of N N according to painewebber analyst thomas <unk> + the minority argument meanwhile is that businesses have the financial <unk> this time around to declare sharply higher dividends even if their earnings weaken + dividend growth on the order of N N is expected by both mr. <unk> of cigna and mr. einhorn of goldman sachs + those dividend bulls argue that corporations are in the unusual position of having plenty of cash left over after paying dividends and making capital expenditures + one indicator investors might want to watch is the monthly tally from standard & poor 's of the number of public companies adjusting their dividends + a total of N companies raised dividends in october basically unchanged from N a year ago s&p said wednesday + that followed four straight months in which the number of increases trailed the year-earlier pace + while the s&p tally does n't measure the magnitude of dividend changes a further <unk> in the number of dividend increases could be a <unk> of slower dividend growth next year + in any case opinion is mixed on how much of a boost the overall stock market would get even if dividend growth continues at double-digit levels + mr. einhorn of goldman sachs estimates the stock market will deliver a N N to N N total return from appreciation and dividends over the next N months vs. a cash rate of return of perhaps N N or N N if dividend growth is weak + but mr. boesel of t. rowe price who also expects N N growth in dividends next year does n't think it will help the overall market all that much + having the dividend increases is a supportive element in the market outlook but i do n't think it 's a main consideration he says + with slower economic growth and flat corporate earnings likely next year i would n't look for the market to have much upside from current levels + your oct. N page-one story on the renewed plight of western union says that western union had lost its chance to be in the telephone business by turning down alexander graham bell 's offer to it of his <unk> because it supposedly felt that voice communication would never replace the telegraph + such is hardly the case + bell 's <unk> <unk> g. hubbard wealthy and <unk> obtained financing to start the american bell telephone co. in boston which even had a subsidiary in new york called the telephone co. of new york + this is where bell 's patents went + western union indeed wanted to get into the telephone business + it acquired thomas edison 's <unk> patent and then immediately sued the bell co. claiming that the <unk> invented by my <unk> <unk> <unk> which had been sold to bell for a <unk> $ N infringed upon western union 's edison patent + when bell established that the <unk> patent <unk> was registered N days before edison 's application western union dropped the lawsuit and agreed never to enter the telephone business the basis for the company 's current plight + oliver <unk> beverly hills calif + troubled nbi inc. said it fired more than half its work force and is <unk> its hardware business to focus on its software and service operations + the ailing company which has reported net losses for N consecutive quarters said it wo n't manufacture network computer systems any more and will greatly reduce its costly direct sales force + altogether nbi said it will eliminate N jobs at its <unk> headquarters N field sales jobs and N jobs at its canadian and united kingdom headquarters + the company 's work force will fall to about N people + stephen g. <unk> president and chief executive officer said customers were n't willing to commit to an expensive nbi hardware systems because of the company 's financial troubles + further he said the company does n't have the capital needed to build the business over the next year or two + we flat ran out of financing resources mr. <unk> said + we had to do something <unk> and <unk> different + as a result he said nbi will focus on <unk> its installed base of systems trying to provide maintenance for other manufacturers and expanding its software business using some of the applications it developed for its hardware + the company currently offers a <unk> package for personal computers called <unk> + the company which recently said it lacked the profits and capital to pay dividends on its series a convertible preferred stock said it has hired an investment banker to help it raise additional cash + in new york stock exchange composite trading yesterday nbi common closed at N cents a share up N cents + it was richard nixon 's first visit to china in N that set in motion the historic <unk> between beijing and washington + but the former u.s. president 's sixth visit to china during which he spoke at length with chinese leaders was nowhere near as successful at easing <unk> that have recently <unk> the <unk> relationship + mr. nixon the most prominent american to come to china since beijing 's bloody <unk> of pro-democracy demonstrators in june <unk> on international <unk> over the massacre + the chinese in turn took aim at american <unk> in china 's domestic affairs + one official newspaper legal daily even directly criticized mr. nixon who is normally referred to here as an old friend + the paper accused him of being a leading <unk> of peaceful evolution a catch phrase to describe what china believes is the policy of western countries to <unk> socialist nations into the capitalist <unk> + the tension was evident on wednesday evening during mr. nixon 's final <unk> <unk> normally an opportunity for <unk> <unk> about <unk> friendship + instead mr. nixon reminded his host chinese president <unk> <unk> that americans have n't <unk> china 's leaders for the military assault of june N that killed hundreds and perhaps thousands of demonstrators + many in the united states including many friends of china believe the crackdown was excessive and <unk> mr. nixon told mr. <unk> who was directly involved in ordering the attack + the events of april through june damaged the respect and confidence which most americans previously had for the leaders of china + the chinese responded in an equally <unk> fashion + in talks with mr. nixon chinese leaders expressed no regret for the killings and even suggested that the u.s. was <unk> involved in the demonstrations this spring + in a meeting tuesday supreme leader deng <unk> told mr. nixon frankly speaking the u.s. was involved too deeply in the turmoil and <unk> <unk> which occurred in beijing not long ago + china was the real victim and it is <unk> to <unk> china for it + despite the harsh exchanges the u.s. and china still seem to be looking for a way to <unk> relations which have deteriorated into what mr. nixon referred to as the greatest crisis in <unk> relations since his initial visit to china N years ago + in his return <unk> to mr. nixon mr. <unk> said the relationship had reached a <unk> + relations between china and the u.s. have been <unk> since june N when chinese dissident <unk> <unk> and his wife <unk> <unk> took refuge in the u.s. embassy in beijing + shortly <unk> mr. bush imposed a series of <unk> sanctions including suspension of most <unk> talks which could be <unk> in u.s. congressional legislation in the coming weeks + mr. nixon is traveling in china as a private citizen but he has made clear that he is an <unk> <unk> for the bush administration + mr. nixon met mr. bush and his national security adviser <unk> scowcroft before coming to china on saturday + and he plans to brief the president at the end of the week u.s. sources said + mr. nixon was to leave china today + according to an american member of the nixon party the former president raised a number of controversial issues in his N hours of talks with <unk> chinese officials + these included china 's economic policies human rights and the question of mr. <unk> + mr. nixon also proposed that china restore its participation in the <unk> program a u.s. <unk> academic exchange + china pulled out of the program in july + in his talks the former president urged china 's leaders to acknowledge that their nation is part of the world community and welcome the <unk> of outside contacts and ideas + ideas are going over borders and there 's no sdi ideological weapon that can shoot them down he told a group of americans at the u.s. embassy on wednesday + there are no signs however of china 's yielding on key issues + but in one minor matter mr. nixon appears to have gained a <unk> + in a meeting with premier <unk> <unk> on monday mr. nixon said that he hoped he would n't <unk> guards with machine guns during his visit to the u.s. embassy + sure enough when he arrived at the embassy two days later the <unk> guards were gone for the first time in five months + a few blocks away at the u.s. ambassador 's residence the guards <unk> the compound also had discarded their <unk> arms for the first time since early june + but the guards there retained their <unk> and a large contingent of <unk> police remained nearby in <unk> cars + moreover police and soldiers continue to <unk> americans who have filed several protests with the foreign ministry in the past week + several times chinese guards have pointed their automatic <unk> at young children of u.s. diplomats and <unk> the trigger + the <unk> were n't loaded + your oct. N article japan 's financial firms lure science graduates states industrial companies are <unk> financial institutions of <unk> japan 's economy by raising the salary stakes for new employees + the japanese industrial companies should know better + they are <unk> up the wrong tree because it is basically their fault they ca n't attract new employees + <unk> <unk> president of fujitsu ltd. believes the money <unk> among young people caused the problem + he is just passing the buck to young people + what 's wrong with asking for more money + money is not everything but it is necessary and business is not volunteer work + it is not <unk> to choose a <unk> job + unfortunately japanese manufacturers have neither good working conditions nor good compensation packages + i get the impression that some japanese managers believe working harder for less money is beautiful + i visited a lot of major japanese manufacturers but i never felt i would want to be employed by any of them + many of them recently have been spending a lot of money on public relations and advertising to improve their images but they should realize that the most important thing is real change not changing people 's perceptions + if the japanese companies are seriously considering their survival they could do at least three things to improve the situation raise salaries higher than those of financial institutions improve working conditions better offices and more <unk> for example accept and hire more labor from outside japan + <unk> <unk> + in reference to your oct. N page-one article barbara bush earns even higher ratings than the president it is <unk> that you must continually define blacks by our <unk> among liberals N N have positive views of her while N N approve of the president 's job performance + in part this may reflect the fact that she speaks a more <unk> language than her husband as columbia 's <unk> <unk> klein puts it + among professionals N N have a favorable opinion of her compared to N N who approve of her husband 's performance + while a quarter of black voters <unk> of mr. bush 's handling of his job only N N have a negative view of his spouse + the statistics <unk> that <unk> of blacks approve of mr. bush 's job performance and N N of blacks approve of mrs. bush + if the assumption is that it is surprising that so few blacks find mr. and mrs. bush <unk> the positive view is even more <unk> + such an editorial point of view <unk> an <unk> <unk> perspective + why are we blacks continually defined by our minority and the lowest common <unk> + <unk> g. foster birmingham <unk> + the national association of securities dealers the <unk> organization for the over-the-counter securities markets disciplined a number of firms and individuals for alleged violations of industry rules + two firms were expelled from the nasd three were suspended or barred and nine were fined + first securities group of california and a principal of the firm louis fernando <unk> of marina del rey calif. were jointly fined $ N and expelled for alleged violations of reporting requirements on securities sales + also mr. <unk> was barred from association with any nasd member + neither first securities of beverly hills nor mr. <unk> could be reached for comment + a <unk> operator had no listing for either party + <unk> henry & co. miami and a principal of the firm henry i. <unk> of miami were jointly fined $ N and expelled for alleged improper use of a customer 's funds among other things + also mr. <unk> was barred from association with any nasd member + <unk> henry has n't any miami telephone listing an operator said + mr. <unk> who apparently has an unpublished number also could n't be reached + <unk> securities corp. of <unk> fla. and a principal of the firm alvin <unk> of <unk> fla. were jointly fined $ N and given <unk> <unk> for allegedly selling securities at unfair prices + <unk> has n't any telephone listing an operator said + mr. <unk> who apparently has an unpublished phone number also could n't be reached + <unk> securities of <unk> calif. and a principal of the firm <unk> george chase also of <unk> were jointly fined $ N and given 30-day <unk> as part of a settlement + while neither admitting nor denying wrongdoing <unk> and mr. chase consented to findings of violations in connection with <unk> sales + officials of <unk> could n't be reached for comment + mr. chase did n't return a telephone call to his office + crane & co. securities inc. of mount <unk> mich. and its president glenn r. crane of sterling heights mich. consented to a joint fine of $ N + without admitting or denying wrongdoing they consented to findings of violations of escrow and <unk> rules + mr. crane did n't return a call seeking comment + first commonwealth securities corp. of new orleans and its president kenneth j. <unk> also of new orleans consented to a $ N fine + also mr. <unk> received a <unk> suspension in a principal capacity + without admitting or denying wrongdoing they consented to findings that they had <unk> represented the firm 's net capital maintained inaccurate books and records and made other violations + mr. <unk> confirmed he had consented to the sanctions but declined to comment further + <unk> securities corp. new york and three of its principals dell eugene <unk> and william <unk> <unk> jr. both of <unk> island wash. and thomas albert <unk> of red bank n.j consented to a fine of $ N + without admitting or denying wrongdoing they consented to findings that they failed to return funds owed to customers in connection with a <unk> offering + reached at his office mr. <unk> currently chairman said an implication that we failed to return investor funds is inappropriate and inaccurate + he described the situation as an escrow problem a timing issue which he said was rapidly <unk> with no losses to customers + <unk> <unk> & co. of <unk> del. and its president william n. <unk> jr. also of <unk> were barred from <unk> principal trades for N days and were jointly fined $ N + the firm and mr. <unk> allegedly sold securities to the public at unfair prices among other alleged violations + mr. <unk> denied the firm had sold securities at unfair prices and suggested that the examination practices of the nasd need improvement + the firm and the nasd differ over the meaning of <unk> and <unk> he added + shearson lehman hutton inc. new york which is <unk> by american express co. consented to a $ N fine + without admitting or denying wrongdoing the firm consented to findings that it failed to respond in a timely manner to the nasd 's requests for information in connection with a customer complaint + a shearson spokesman had no comment + the following individuals were fined as indicated and barred from association with nasd members or where noted suspended + except where noted none of these people could be reached for comment or had any comment + john william davis <unk> <unk> fined $ N jeffrey gerard <unk> <unk> fla. $ N and <unk> suspension eugene michael <unk> la canada calif. fined $ N ordered to <unk> $ N and suspended one year <unk> stewart <unk> la canada fined $ N ordered to <unk> $ N and suspended six months + mr. <unk> said we got what amounted to a parking ticket and by complaining about it we ended up with a sizable fine and suspension + the matter did n't involve anybody 's securities transactions he added + the following were neither barred nor suspended <unk> <unk> <unk> rolling hills calif. fined $ N and ordered to <unk> $ N stuart lane <unk> <unk> calif. fined $ N and ordered to <unk> $ N <unk> <unk> <unk> <unk> valley calif. fined $ N + mr. <unk> a registered representative in the insurance business said he <unk> up because he did n't realize he was breaking securities laws + insurance agents have been forced by their companies into becoming registered <unk> he said but they are not providing compliance and <unk> training so that we can avoid stupid mistakes + i was n't ever actively engaged in any securities activities said mr. <unk> + i never had any clients at all + it was just a stupid mistake to get the license he said adding i 'd just as soon not get into details of the settlement + program traders are <unk> of predicting that if they are blocked in the u.s. they will simply <unk> to foreign stock markets + but in london and tokyo where computer-driven trading now plays a small but growing role traders say a number of hurdles <unk> + government officials especially in japan probably would resist any <unk> of program trading by players trying to <unk> off the u.s. furor over their activities and <unk> abroad with their business + japan is very concerned about the possible effects of program trading a senior japanese official said after the oct. N stock plunge in new york + u.s. stock-index futures are n't even traded in japan now + and because of the time difference the japanese and the u.s. markets ' trading hours do n't <unk> + it all adds up to a barrier to <unk> index arbitrage the most popular form of u.s. program trading that seeks to exploit brief differences between prices of stocks in new york and the price of a futures contract in chicago based on those stocks + about N N of all program trading by new york stock exchange firms in september took place in foreign markets according to big board data + yet it is difficult to imagine japan racing to introduce <unk> stock-index futures + japan 's finance ministry already is <unk> institutional investors ' activity to see whether policy changes are needed to cope with the current level of program trading said <unk> utsumi vice minister for international finance + program trading has taken off in japan since last year 's introduction of <unk> stock-index futures trading on the tokyo and osaka stock exchanges + but regulators are wary + they have n't forgotten the leap in share prices last dec. N when the first <unk> of <unk> index arbitrage drove stocks <unk> in the last half-hour of trading startling regulators who thought they had written enough rules to prevent such a swing + japan 's finance ministry had set up <unk> to limit how far futures prices could fall in a single session and to give market operators the authority to suspend trading in futures at any time + maybe it was n't enough a finance ministry official noted after the dec. N surge + japan 's regulators have since tightened controls on <unk> stock purchases + tokyo 's leading program traders are the big u.s. securities houses though the japanese are playing <unk> + some u.s. firms notably salomon inc. and morgan stanley group inc. have <unk> a hefty chunk of their japanese earnings from index arbitrage both for customers and for their own accounts + morgan stanley last week joined a growing list of u.s. securities firms that have stopped doing index arbitrage for their own accounts + both <unk> c. <unk> who heads salomon in tokyo and john s. <unk> who heads morgan stanley there <unk> a good part of their firms ' success in tokyo to their ability to offer sophisticated futures-related investment strategies to big institutional clients + they do n't have plans to cut back + it has not been <unk> in the markets here mr. <unk> said + the real difference seems to be that the cash market here is big enough and liquid enough that the futures market is n't having the same impact it does in america + the british also are <unk> program trades + index-arbitrage trading is something we want to watch closely an official at london 's stock exchange said + we do n't think there is cause for concern at the moment + london serves increasingly as a <unk> for program trading of u.s. stocks + market professionals said london has several <unk> + first the trading is done over the counter and is n't reported on either the u.s. or london stock trading tapes + second it can be used to <unk> positions before u.s. trading begins but at prices pegged to the previous session 's big board close + in addition to the extra privacy of these trades the transactions can often be less expensive to execute because the parties do n't have to pay a floor brokerage fee or a specialist 's fee + still much less index-arbitrage activity is done over here than in the u.s. said richard <unk> chief investment manager at standard life assurance co. which manages about # N billion $ N billion in united kingdom institutional funds + britain has two main index-arbitrage instruments + a financial times-stock exchange 100-share index option contract is traded on the london stock exchange 's traded options market + and an ft-se futures contract is traded on the london international financial futures exchange + both contracts have gained a following since the N global market crash + the average number of ft-se option contracts traded on the london exchange has surged nearly tenfold since the contract 's launch in N + this year the average of daily contracts traded totaled N up from N a year earlier and from N in N + but a survey early this summer indicated that the volume of <unk> trading was only N N of the size of the underlying equity market exchange officials said + this compares with estimates that the u.s. <unk> market is perhaps four times as large as the underlying domestic market + the house voted to boost the federal minimum wage for the first time since early N casting a solid N vote for a compromise measure backed by president bush + the vote came after a debate <unk> with complaints from both proponents and critics of a substantial increase in the wage floor + advocates said the <unk> rise to $ N an hour by april N is too small for the working poor while opponents argued that the increase will still hurt small business and cost many thousands of jobs + but the legislation reflected a compromise agreed to on tuesday by president bush and democratic leaders in congress after congressional republicans urged the white house to <unk> a bit from its previous resistance to compromise + so both sides accepted the compromise which would lead to the first lifting of the minimum wage since a four-year law was enacted in N raising the wage to $ N an hour from $ N + under the measure passed yesterday the minimum wage would rise to $ N next april + the senate plans to take up the measure quickly and is expected to pass it + there are no <unk> about this bill rep. pat williams d. <unk> said during house floor debate yesterday + but because it 's all we 've got i 'm going to vote for it + while the minimum wage had traditionally been pegged at half the average u.s. manufacturing wage the level of $ N an hour in N will still be less than N N of average factory pay mr. williams said + but rep. <unk> <unk> r. n.j instead praised the house 's acceptance of a new youth training wage a <unk> that gop <unk> have sought for many years + adopting a <unk> policy means getting beyond the nickel and <unk> of the minimum wage mrs. <unk> said + policy makers regard the youth wage as helping to limit the loss of jobs from an increase in the minimum wage but they have lately touted it as necessary to help <unk> job skills to <unk> into the work force + labor unions and democrats long fought the idea but recently <unk> to it in the face of bush administration insistence + the compromise sets the training wage at $ N an hour next april and at $ N an hour or N N of the minimum wage in april N + employers can pay the <unk> for N days without restriction to workers with less than six months of job experience and for another N days if the company uses a <unk> training program for the young workers + the training wage covers only workers who are N to N years old + the white house previously insisted on an <unk> six-month training wage that could be paid any time a worker of any age took a new job + the u.s. chamber of commerce still opposed to any <unk> increase said the compromise plan to lift the wage floor N N in two stages between april N and april N will be impossible for many employers to accommodate and will result in the elimination of jobs for american workers and higher prices for american consumers + zenith data systems corp. a subsidiary of zenith electronics corp. received a $ N million navy contract for software and services of <unk> over an <unk> period + rockwell international corp. won a $ N million air force contract for <unk> <unk> replacement aircraft + martin <unk> corp. was given a $ N million air force contract for <unk> navigation and targeting equipment + federal data corp. got a $ N million air force contract for intelligence data handling + for six years t. marshall hahn jr. has made corporate acquisitions in the george bush mode kind and <unk> + the question now can he act more like <unk> teddy <unk> + mr. hahn the <unk> chairman and chief executive officer of georgia-pacific corp. is leading the <unk> concern 's unsolicited $ N billion bid for great northern nekoosa corp + nekoosa has given the offer a public cold shoulder a reaction mr. hahn has n't faced in his N earlier acquisitions all of which were negotiated behind the scenes + so far mr. hahn is trying to <unk> nekoosa into negotiating a friendly surrender while talking tough + we are prepared to pursue aggressively completion of this transaction he says + but a takeover battle opens up the possibility of a bidding war with all that implies + if a competitor enters the game for example mr. hahn could face the dilemma of paying a premium for nekoosa or seeing the company fall into the arms of a rival + given that choice associates of mr. hahn and industry observers say the former university president who has developed a reputation for not <unk> for anything would <unk> + there 's a price above which i 'm positive marshall has the <unk> not to pay says <unk> <unk> georgia-pacific 's executive vice president for pulp and paper + says <unk> associate jerry <unk> vice president corporate development at <unk> industries inc. he is n't of the old school of winning at any cost + he also is a consensus manager insiders say + the decision to make the bid for nekoosa for example was made only after all six members of georgia-pacific 's management committee signed onto the deal even though mr. hahn knew he wanted to go after the company early on says mr. <unk> + associates say mr. hahn picked up that careful approach to management as president of virginia <unk> institute + assuming that post at the age of N he managed by consensus as is the rule in universities says warren h. <unk> a university official who is <unk> a book on mr. hahn + but he also showed a willingness to take a strong stand + in N mr. hahn called in state police to arrest student protesters who were <unk> a university building + that impressed robert b. <unk> georgia-pacific 's chief executive at the time whom mr. hahn had met while <unk> for the institute + in N mr. <unk> <unk> mr. hahn into joining the company as executive vice president in charge of chemicals the move <unk> many in georgia-pacific who did n't believe a university administrator could make the transition to the corporate world + but mr. hahn rose swiftly through the ranks <unk> a raw intelligence that he says he knew he <unk> early on + the son of a <unk> mr. hahn <unk> first grade because his reading ability was so far above his <unk> + moving rapidly through school he <unk> <unk> beta <unk> from the university of kentucky at age N after spending only N N years in college + he earned his <unk> in nuclear physics from the massachusetts institute of technology + mr. hahn agrees that he has a <unk> memory but friends say that 's an <unk> + they call it photographic + mr. hahn also has engineered a surprising turnaround of georgia-pacific + taking over as chief executive officer in N he inherited a company that was mired in debt and hurt by a <unk> slide in its <unk> business + mr. hahn began selling <unk> businesses such as oil and gas and chemicals + he even sold one unit that made <unk> <unk> covers + at the same time he began building up the pulp and paper segment of the company while <unk> building products on home repair and remodeling rather than materials for new-home construction + the idea was to buffet building products from cycles in new-home construction + the formula has paid off so far + georgia-pacific 's sales climbed to $ N billion last year compared with $ N billion in N when mr. hahn took the reins + profit from continuing operations has soared to $ N million from $ N million + mr. hahn attributes the gains to the philosophy of concentrating on what a company knows best + the record of companies that have diversified is n't all that impressive he says + nekoosa would n't be a diversification + it would be a good match mr. hahn and many analysts say of two healthy companies with high-quality assets and strong cash flows + the resulting company would be the largest forest-products concern in the world with combined sales of more than $ N billion + but can mr. hahn carry it off + in this instance industry observers say he is entering <unk> waters + says <unk> <unk> an analyst at first manhattan co. this is the greatest acquisition challenge he has faced + a house-senate conference approved major portions of a package for more than $ N million in economic aid for poland that relies heavily on $ N million in credit and loan guarantees in fiscal N in hopes of <unk> future trade and investment + for the agency for international development <unk> approved $ N million in secondary loan guarantees under an expanded trade credit insurance program and total loan guarantees for the overseas private investment corp. are increased by $ N million over fiscal N as part of the same poland package + the conference approved at least $ N million in direct cash and development assistance as well and though no decision was made both sides are committed to adding more than $ N million in economic support funds and environmental initiatives sought by the bush administration + the agreement on poland contrasts with the major differences remaining over the underlying foreign aid bill which has already provoked veto threats by the white house and is sharply confined under this year 's budget + these fiscal pressures are also a factor in shaping the poland package and while more ambitious <unk> legislation is still pending the appropriations bill in conference will be more decisive on u.s. aid to eastern europe + to accommodate the additional cash assistance the house appropriations committee last week was required to <unk> an estimated $ N million from the pentagon + and though the size of the loan guarantees approved yesterday is significant recent experience with a similar program in central america indicates that it could take several years before the new polish government can fully use the aid effectively + the action on poland came as the conference separately approved $ N million for international population planning activities an N N increase over fiscal N + the house and senate are divided over whether the united nations population fund will receive any portion of these appropriations but the size of the increase is itself significant + in a second area of common concern the world environment an additional $ N million will be provided in development assistance to fund a series of initiatives related both to global warming and the plight of the african elephant + the sweeping nature of the bill draws a variety of special interest amendments running from an import exemption for a california <unk> museum to a small but intriguing struggle among sugar producing nations over the fate of panama 's quota of exports to the profitable u.s. market + panama was stripped of this right because of u.s. differences with the noriega regime but the central american country would have received a quota of N metric tons over a <unk> period ending sept. N N + about a quarter of this share has already been <unk> according to the industry but the remaining N tons are still a lucrative target for growers because the current u.s. price of N cents a pound runs as much as a nickel a pound above the world rate + the potential sales are nearly $ N million and house majority whip william gray d. pa began the bidding this year by proposing language that the quota be allocated to <unk> countries of the caribbean such as jamaica and <unk> + rep. jerry lewis a conservative <unk> added a provision of his own intended to assist <unk> and the senate then <unk> the list further by including all countries in the u.s. caribbean basin <unk> as well as the philippines backed by the powerful hawaii democrat sen. daniel inouye + jamaica wary of <unk> its caribbean basin allies has apparently instructed its lobbyist to abandon the provision initially drafted by mr. gray but the greater question is whether mr. inouye who has strong ties to the sugar industry is able to <unk> a claim by the philippines + in separate floor action the house <unk> budget restrictions and gave quick approval to $ N billion in supplemental appropriations for law enforcement and anti-drug programs in fiscal N + the funding is attached to an estimated $ N billion transportation bill that goes next to the senate and carries with it a proposed permanent smoking ban on virtually all u.s. domestic airline flights + the leadership hopes to move the compromise measure promptly to the white house but in recent days the senate has been as likely to bounce bills back to the house + the most recent example was a nearly $ N billion fiscal N bill funding the state justice and commerce departments + and after losing a battle tuesday night with the senate foreign relations committee <unk> from both houses are expected to be forced back to conference + beauty takes <unk> to safety on bridges + everyone agrees that most of the nation 's old bridges need to be repaired or replaced + but there 's disagreement over how to do it + highway officials insist the <unk> <unk> on older bridges are n't strong enough to prevent vehicles from <unk> through + but other people do n't want to lose the bridges ' beautiful sometimes historic features + the primary purpose of a <unk> is to contain a vehicle and not to provide a <unk> view says jack white a planner with the indiana highway department + he and others prefer to install <unk> such as the type f safety shape a <unk> concrete <unk> with no <unk> + in richmond ind. the type f <unk> is being used to replace <unk> <unk> on the <unk> street bridge + <unk> boone who teaches art at <unk> college calls the new structure just an <unk> bridge and one that blocks the view of a new park below + in hartford conn. the charter oak bridge will soon be replaced the <unk> <unk> from its <unk> <unk> to a park + <unk> are possible + citizens in peninsula ohio upset over changes to a bridge negotiated a deal the bottom half of the <unk> will be type f while the top half will have the old bridge 's <unk> pattern + similarly highway engineers agreed to keep the old <unk> on the key bridge in washington d.c. as long as they could install a crash barrier between the sidewalk and the road + <unk> <unk> + drink carrier competes with <unk> + <unk> <unk> just got easier or so claims <unk> corp. the maker of the <unk> + the chicago company 's beverage carrier meant to replace <unk> <unk> at <unk> stands and fast-food outlets resembles the plastic <unk> used on <unk> of beer only the <unk> hang from a <unk> of <unk> + the new carrier can <unk> as many as four <unk> at once + inventor <unk> marvin says his design virtually <unk> <unk> + <unk> are n't even needed + he also claims the carrier costs less and takes up less space than most paper carriers + a few fast-food outlets are giving it a try + the company acknowledges some problems + a driver has to find something to hang the carrier on so the company supplies a window hook + while it breaks down in prolonged <unk> it is n't <unk> + and unlike some <unk> there 's no place for food + spirit of perestroika <unk> design world + an exchange of u.s. and soviet designers promises change on both sides + an exhibition of american design and architecture opened in september in moscow and will travel to eight other soviet cities + the show runs the <unk> from a <unk> to chairs to a model of the citicorp building + the event continues into next year and includes an exchange program to swap design teachers at <unk> and <unk> 's <unk> institute + dan <unk> leader of the <unk> group sees benefits all around + the soviets who normally have few clients other than the state will get exposure to a market system he says + americans will learn more about making products for the soviets + mr. <unk> says the soviets could even help u.s. designers renew their sense of purpose + in moscow they kept asking us things like why do you make N different <unk> when all you need is one good one he says + they got us thinking maybe we should be helping u.s. companies improve existing products rather than always developing new ones + seed for jail solution fails to take root + it 's a two birds with one stone deal <unk> group architects propose using grain elevators to house <unk> + it would ease jail <unk> while preserving historic structures the company says + but new york state which is seeking solutions to its prison cell shortage says no + grain elevators built in the 1920s and <unk> have <unk> concrete walls and a <unk> shape that would easily contain <unk> cells with a control point in the middle the new york firm says + many are far enough from residential areas to pass public <unk> yet close enough to permit family visits + besides <unk> says grain elevators are worth preserving for <unk> reasons one <unk> architect compared them to the <unk> of egypt + a number of cities including minneapolis philadelphia and houston have vacant grain elevators <unk> says + a medium-sized one in brooklyn it says could be altered to house up to N <unk> at a lower cost than building a new prison in <unk> new york + a spokesman for the state however calls the idea not effective or cost efficient + the labor department cited usx corp. for numerous health and safety violations at two pennsylvania plants and proposed $ N million in fines the largest penalty ever proposed for alleged workplace violations by an employer + the department 's <unk> safety and health administration proposed fines of $ N million for alleged violations at the company 's <unk> hills pa. steel mill that was a record for proposed penalties at any single facility + osha cited nearly N alleged violations of federal electrical <unk> <unk> and other requirements + a second <unk> covering the company 's <unk> pa. coke works involved more than N alleged violations of <unk> and other requirements for which osha proposed $ N million in fines + labor secretary elizabeth dole said the magnitude of these penalties and <unk> is matched only by the magnitude of the hazards to workers which resulted from corporate <unk> to worker safety and health and severe cutbacks in the maintenance and repair programs needed to remove those hazards + osha said there have been three worker <unk> at the two plants in the past two years and N deaths since N + gerard <unk> the head of osha said usx managers have known about many of the safety and health deficiencies at the plants for years yet have failed to take necessary action to <unk> the hazards + particularly <unk> mrs. dole said are the company 's numerous failures to properly record injuries at its <unk> works in spite of the firm promise it had made in an earlier <unk> settlement agreement to correct such discrepancies + that settlement was in april N + a usx spokesman said the company had n't yet received any documents from osha regarding the penalty or fine + once we do they will receive very serious evaluation the spokesman said + no consideration is more important than the health and safety of our employees + usx said it has been <unk> with osha since the agency began investigating the <unk> and <unk> works + he said that if and when safety problems were identified they were corrected + the usx <unk> represented the first sizable enforcement action taken by osha under mr. <unk> + he has promised <unk> fines though the size of penalties sought by osha have been rising in recent years even before he took office this year + the big problem is that usx management has proved unwilling to devote the necessary resources and manpower to removing hazards and to <unk> safety and health in the plants said linda <unk> osha regional administrator in philadelphia + usx has N working days to contest the <unk> and proposed penalties before the independent <unk> safety and health review commission + before the usx case osha 's largest proposed fine for one employer was $ N million for alleged safety violations at john <unk> & co. a <unk> subsidiary of united brands co. cincinnati + the company is <unk> the fine + due to an <unk> error a letter to the editor in yesterday 's edition from frederick h. <unk> mistakenly identified the <unk> + it should be the natural resources defense council + your oct. N editorial the ill homeless referred to research by us and six of our colleagues that was reported in the sept. N issue of the journal of the american medical association + your comments implied we had discovered that the principal cause of homelessness is to be found in the large numbers of <unk> ill and <unk> people in the homeless population + we have made no such statement + it is clear that most <unk> ill people and most <unk> do not become homeless + the causes of homelessness are poorly understood and complex in any individual case + in <unk> from our research you emphasized the high <unk> of mental illness and <unk> + you did not note that the homeless people we examined had a <unk> of physical disorders in addition to their psychiatric problems and substance abuse + they suffered from <unk> <unk> diseases cardiovascular disorders skin problems <unk> diseases and the <unk> of <unk> and rape + homeless people not only lack safety privacy and shelter they also lack the <unk> <unk> of <unk> <unk> and basic health care + in a recent report the institute of medicine pointed out that certain health problems may <unk> a person to homelessness others may be a consequence of it and a third category is composed of disorders whose treatment is difficult or impossible if a person lacks adequate shelter + the <unk> between health and homelessness are complex <unk> sweeping <unk> as to cause or effect + if we look to the future preventing homelessness is an important objective + this will require us to develop a much more sophisticated understanding of the dynamics of homelessness than we currently <unk> an understanding that can be developed only through careful study and research + william r. <unk> <unk> <unk> j. <unk> <unk> department of <unk> johns hopkins university school of medicine baltimore + a study by <unk> prof. james wright says homelessness is due to a complex array of problems with the common <unk> of poverty + the study shows that nearly N N of the homeless population is made up of women and children and that only N N of the homeless <unk> some combination of drug alcohol and mental problems + according to dr. wright homelessness is simultaneously a housing problem an employment problem a <unk> problem a problem of social <unk> a mental health problem a family violence problem a problem created by the cutbacks in social welfare spending a problem resulting from the <unk> of the traditional nuclear family and a problem <unk> connected to the recent increase in the number of persons living below the poverty level + <unk> e. <unk> <unk> president robert wood johnson foundation princeton n.j + to quote the highly regarded director of a privately funded <unk> center for the homeless in new york if you 're homeless you do n't sleep for fear of being robbed or murdered + after your first three weeks of sleep <unk> you 're <unk> in touch with reality any more without psychiatric treatment you may well be unable to fend for yourself ever again + some of the homeless obviously had <unk> mental illness or <unk> + but many others have fallen through cracks in the economy into the grim <unk> world of our city streets + once there what ways of escape are open to them other than drink drugs or <unk> + maxwell <unk> <unk> brooklyn n.y + you dismiss as <unk> the view that the reduction of federal <unk> programs by N N might have played a significant role in the increased number of men and women sleeping on our city streets during the <unk> years + there is no sign that you bothered to consider the <unk> of your logic namely that mental illness and substance abuse might be to some degree consequences rather than causes of homelessness + your research stopped when a convenient <unk> could be made + robert s. <unk> cambridge mass + of the approximately N sponsors of the recent march in washington for the homeless you chose to cite such groups as the national association of home builders and the international union of <unk> and allied <unk> <unk> that the march got its major support from <unk> groups that know a good thing when they see it and that the crusade was based on greed or the profit motive + but is n't the desire for profit the driving force behind those who subscribe to and <unk> in your paper + why did n't you mention the <unk> or the <unk> or catholic charities usa or a hundred other nonprofit organizations that participated in the march + as for the findings on the N baltimore homeless who <unk> psychiatric <unk> i suggest you conduct your own survey + choose N business executives including perhaps someone from your own staff and put them out on the streets to be deprived for one month of their homes families and income + i would predict that within a short time most of them would find <unk> a satisfactory substitute for chivas <unk> and that their normal <unk> <unk> <unk> and substance abuse would increase dramatically + ruth k. nelson <unk> n.c + rogers communications inc. said it plans to raise N million to N million canadian dollars us$ N million to $ N million through a private placement of perpetual preferred shares + perpetual preferred shares are n't <unk> by the holders the company said + rogers said the shares will be convertible into class b shares but that the company has the option to redeem the shares before a conversion takes place + a spokesman for the toronto cable television and telecommunications concern said the coupon rate has n't yet been fixed but will probably be set at around N N + he declined to discuss other terms of the issue + the house passed legislation designed to make it easier for the transportation department to block airline leveraged buy-outs + the final vote came after the house rejected republican efforts to weaken the bill and approved two amendments sought by organized labor + the bush administration has threatened to veto such a bill because of what it views as an <unk> <unk> into the affairs of industry but the N vote suggests that supporters have the potential to override a veto + the broader question is where the senate stands on the issue + while the senate commerce committee has approved legislation similar to the house bill on airline leveraged buy-outs the measure has n't yet come to the full floor + although the legislation would apply to acquisitions involving any major airline it is aimed at giving the transportation department the chance to review in advance transactions financed by large amounts of debt + the purpose of the bill is to put the <unk> on airline acquisitions that would so load a carrier up with debt that it would <unk> safety or a carrier 's ability to compete rep. john paul <unk> r. ark said + the bill as it was approved by the house public works and transportation committee would give the transportation department up to N days to review any purchase of N N or more of the stock in an airline + the department would be required to block the buy-out if the acquisition is likely to financially weaken a carrier so that safety would be <unk> its ability to compete would be sharply diminished it would be put into foreign control or if the transaction would result in the sale of <unk> assets unless selling such assets had an <unk> public benefit + the house approved an amendment offered by rep. peter <unk> d. ore. that would in addition to the previous criteria also require the department to block the acquisition of an airline if the added debt incurred were likely to result in a reduction in the number of the carrier 's employees or their wages or benefits + rep. james <unk> d. ohio said the amendment which passed N would let the american worker know that we consider them occasionally + but rep. <unk> said that the provision which he dubbed a special interest amendment was likely to make the bill even more controversial + on tuesday the house approved a <unk> amendment that would require the transportation department to reject airline acquisitions if the person seeking to purchase a carrier had run two or more airlines previously that have filed for protection from creditors under chapter N of the federal bankruptcy code + the provision called the <unk> amendment by its supporters apparently was aimed at preventing texas air corp. chairman frank lorenzo from attempting to take over another airline + <unk> report + you now may drop by the voice of america offices in washington and read the text of what the voice is broadcasting to those N million people around the world who tune in to it each week + you can even take notes extensive notes for the voice folks wo n't look over your shoulder about what you read + you can do all this even if you 're not a reporter or a researcher or a scholar or a member of congress + and my newspaper can print the text of those <unk> + until the other day you as an ordinary citizen of this democracy had no right to see what your government was telling your <unk> around the world + that was the law + and i apparently had no right to print <unk> what the voice was booming to <unk> + it was censorship + it was <unk> + and it was stupid + the theory was that the voice is a propaganda agency and this government should n't <unk> its own people + that sounds neat but this government any government <unk> its own people every day + government press releases <unk> <unk> tours of military facilities publications are all propaganda of sorts + propaganda is just information to support a viewpoint and the beauty of a democracy is that it enables you to hear or read every viewpoint and then make up your own mind on an issue + the restrictions on <unk> and <unk> of voice material were especially absurd an agency in the information business was not being allowed to inform + in june N i wrote in this space about this issue + assuming it was n't one of those columns that you <unk> and put on the <unk> door i 'll review the facts + the voice of america is a government agency that <unk> news and views some might say propaganda in N <unk> to N million <unk> around the world + it does a <unk> job + its budget $ N million is paid for by you + but a N law barred the <unk> of that material in the u.s. + the law let scholars reporters and researchers read <unk> of <unk> material only at <unk> headquarters in washington but it barred them from copying <unk> + and of course there 's that word <unk> + how 's that again + you may come by the agency to read but not copy either <unk> or by <unk> a voice official explained when i asked + what if i tune in my <unk> radio <unk> an editorial or program and print it in my newspaper + nor are you free to <unk> such material i was advised + that sounded a lot like censorship so after years of letters and conversations that went nowhere i sued + a couple of weeks ago i lost the case in federal district court in des <unk> + at least that 's the way it was reported + and indeed the lawsuit was dismissed + but i i like to think of it in terms of we all of us won the point + for a funny thing happened on the way to the ruling the united states information agency which runs the voice changed its position on three key points + the usia said that on reflection of course i could print anything i could get my hands on + the word <unk> it decided referred only to itself + the usia officially and publicly declared the <unk> right of everyone except the usia to <unk> agency program materials in the united states my lawyer the <unk> mark mccormick of des <unk> said in a memo pointing out the facts and trying to make me feel good after the press reported that i had lost + the court noted the new usia position but just in case officially found that congress did not intend to preclude plaintiffs from <unk> usia information domestically + the usia said that on reflection anyone could view the <unk> materials not just the reporters scholars researchers and congressmen who are mentioned in the statute + the usia publicly and officially stated in the litigation that all persons are allowed access to the materials notwithstanding the statutory <unk> because the usia has determined that it will not check the credentials of any person appearing and <unk> to see the materials mr. mccormick noted + and the usia said that all of us could take extensive notes + the agency publicly and officially declared in the lawsuit that persons who examine the materials may make notes and while the agency position is that persons may not take <unk> notes no one will check to determine what notes a person has taken mr. mccormick reported + i had sought in my suit the right to print voice material which had been denied me and i had sought a right to receive the information arguing in effect that a right to print government information is n't very helpful if i have no right to get the information + but the court disagreed + the first amendment <unk> the government from passing laws <unk> the right to free speech judge donald o'brien ruled + the first amendment does not <unk> a duty upon the government to assure easy access to information for members of the press + so now the situation is this + you have a right to read voice of america scripts if you do n't mind traveling to washington every week or so and visiting the voice office during business hours + i have a right to print those scripts if i go there and <unk> but no longer <unk> copy them out in long hand + but neither of us can copy the material on a xerox machine or have it sent to us + in an era when every government agency has a public-relations machine that sends you stuff whether you want it or not this does seem odd + indeed judge o'brien ruled that it would be easy to conclude that the usia 's position is inappropriate or even stupid but it 's the law + so the next step i suspect is to try to get the law changed + we i assume you 're in this with me at this point need to get three words for examination only eliminated from the law + section N of the united states information and educational exchange act of N says voice material shall be available to certain of us but now thanks to the usia 's new position all of us for examination only + if those words were n't there the nice people at the voice would be able to send you the information or at the very least let you <unk> it + this is not a <unk> issue + you have raised important questions which ought to be answered what does usia say about america abroad how do we say it and how can american taxpayers get the answers to these questions a man wrote me a couple of years ago + the man was charles <unk> <unk> + at the time he was director of the + he had no answers then + now there are some + this democracy is suddenly a little more democratic + i feel pretty good about it + mr. gartner is editor and <unk> of the daily tribune in <unk> iowa and president of nbc news in new york + r. gordon mcgovern was forced out as campbell soup co. 's president and chief executive officer the strongest evidence yet of the power that dorrance family members intend to <unk> in <unk> the troubled food company + herbert m. baum the <unk> president of the company 's campbell u.s.a. unit and edwin l. harper N the chief financial officer will run campbell as a team <unk> responsibilities rather evenly until a successor is named + the board already has been searching for strong outside candidates including <unk> executives with considerable international experience + wall street reacted <unk> to mr. mcgovern 's departure and its implications + in heavy trading on the new york stock exchange campbell 's shares rose $ N to close at $ N + the profit motive of the major shareholders has clearly changed for the better said john <unk> a food industry analyst for prudential-bache in new york + mr. mcgovern was widely seen as sales and not profit <unk> + new managers would think a little more like wall street mr. <unk> added + some of the surge in the stock 's price appeared to be linked to revived takeover speculation which has contributed to volatility of campbell shares in recent months + campbell 's international businesses particularly in the u.k. and italy appear to be at the heart of its problems + growth has fallen short of targets and operating earnings are far below results in u.s. units + for example campbell is a distant third in the u.k. frozen foods market where it recently paid N times earnings for <unk> foods plc and wound up with far more capacity than it could use + similarly campbell 's italian <unk> operation d. <unk> & co. has been hurt by <unk> and distribution problems + such problems will require considerable <unk> to resolve + however neither mr. baum nor mr. harper has much international experience + mr. baum a <unk> marketer who is said to have a good <unk> with campbell employees will have responsibility for all domestic operations except the <unk> farm unit + mr. harper a veteran of several manufacturing companies who joined campbell in N will take charge of all overseas operations as well as <unk> + in an joint interview yesterday both men said they would like to be the company 's next chief executive + mr. mcgovern N had been under intense pressure from the board to boost campbell 's <unk> performance to the level of other food companies + the board is dominated by the <unk> of the late john t. dorrance jr. who controlled about N N of campbell 's stock when he died in april + in recent months mr. dorrance 's children and other family members have pushed for improved profitability and higher returns on their equity + in august the company took a $ N million pretax charge against fiscal N earnings when it announced a world-wide restructuring plan + the plan calls for closing at least nine plants and eliminating about N jobs + but analysts said early results from the reorganization have been disappointing especially in europe and there were signs that the board became <unk> + campbell officials said mr. mcgovern was n't available yesterday to discuss the circumstances of his departure + the company 's prepared statement quoted him as saying the ceo succession is well along and i 've decided for personal reasons to take early retirement + but people familiar with the agenda of the board 's meeting last week in london said mr. mcgovern was fired + mr. mcgovern himself had said repeatedly that he intended to stay on until he reached the conventional retirement age of N in october N unless i get fired + campbell said mr. mcgovern had withdrawn his name as a candidate for re-election as a director at the annual shareholder meeting scheduled for nov. N + for fiscal N mr. mcgovern received a salary of $ N + he owns about N shares of campbell stock and has options to buy more than N additional shares + he will be eligible for an annual pension of more than $ N with certain other <unk> benefits + during mr. mcgovern 's <unk> term as president the company 's sales rose to $ N billion from $ N billion and net income increased to $ N million from $ N million the statement said + mr. baum said he and mr. harper both <unk> closing some plants as long ago as early N + you 've got to make the restructuring work said mr. baum + you 've got to make those savings now + mr. harper expressed confidence that he and mr. baum can convince the board of their <unk> to run the company + we look upon this as a great opportunity to prove the fact that we have a tremendous management team he said + he predicted that the board would give the current duo until early next year before naming a new chief executive + mr. baum said the two have orders to focus on <unk> profits and to take a hard look at our businesses what is good what is not so good + analysts generally <unk> the performance of campbell u.s.a. the company 's largest division which posted N N unit sales growth and a N N improvement in operating profit for fiscal N + the way that we 've been managing campbell u.s.a. can hopefully spread to other areas of the company mr. baum said + in the interview at headquarters yesterday afternoon both men <unk> confidence and seemed to work well together + you 've got two <unk> sitting right before you said mr. baum + we play to win + wednesday november N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + robert l. bernstein chairman and president of random house inc. announced his resignation from the publishing house he has run for N years + a successor was n't named which fueled speculation that mr. bernstein may have <unk> with <unk> newhouse jr. whose family company advance publications inc. owns random house + abrupt departures are n't <unk> of within the newhouse empire + in an interview mr. bernstein said his departure <unk> out of discussions with <unk> newhouse and that 's the decision i reached + he declined to elaborate other than to say it just seemed the right thing to do at this minute + sometimes you just go with your gut + mr. bernstein said he will stay until dec. N and work with his successor who is to be named soon + mr. newhouse meanwhile insisted that he is n't unhappy with mr. bernstein or the performance of random house the largest trade publishing house in the u.s. + the company said the publisher 's annual sales volume increased to $ N million from $ N million during mr. bernstein 's tenure + bob has handled the extraordinary growth of the company quite <unk> said mr. newhouse + the company is doing well it 's stable it 's got good people + bob has an agenda and this seemed like the natural time + publishing officials believe that while random house has enjoyed spectacular growth and has smoothly integrated many acquisitions in recent years some of the bigger ones have n't been absorbed so easily + crown publishing group acquired last year is said to be turning in disappointing results + as a private company random house does n't report its earnings + mr. bernstein who succeeded bennett <unk> has been only the second president of random house since it was founded in N + speculation on his successor centers on a number of division heads at the house + possible candidates include susan <unk> president of <unk> <unk> random house 's huge and successful <unk> division + some say anthony <unk> head of a recently acquired british company century hutchinson could be chosen + there is also speculation that mr. newhouse could bring in a powerhouse businessman or another newhouse family member to run the business side in combination with a publishing executive like robert <unk> who left random house 's alfred a. <unk> to run the new yorker also owned by the newhouse family + not included on the <unk> list are <unk> evans recruited two years ago to be publisher of adult trade books for random house and <unk> mehta president of the prestigious alfred a. <unk> unit + when ms. evans took her job several important divisions that had reported to her predecessor were n't included partly because she did n't wish to be a full-time administrator + mr. mehta is widely viewed as a brilliant editor but a <unk> administrator and his own departure was rumored recently + mr. bernstein a tall energetic man who is widely respected as a publishing executive has spent much of his time in recent years on human rights issues + congress learned during the reagan administration that it could <unk> the executive branch by <unk> again and again the same seven words provided that no funds shall be spent + this phrase once again is found throughout the many appropriations bills now moving through congress + it signals congress 's attempt under the <unk> of <unk> the public <unk> to deny the president the funding necessary to execute certain of his duties and prerogatives specified in article ii of the constitution + this <unk> of congressional action is <unk> on an interpretation of the appropriations clause that is <unk> and unconstitutional + the appropriations clause states that no money shall be drawn from the treasury but in consequence of appropriations made by law + the prevailing interpretation of the clause on capitol hill is that it gives congress an <unk> veto over every <unk> action of the president through the ability to <unk> funding + this interpretation was officially endorsed by congress in N in the iran-contra report + as <unk> of congressional power understand a power of the <unk> so broadly <unk> would <unk> the presidency and <unk> the principle of separation of powers + it is not supported by the text or history of the constitution + the <unk> hardly discussed the appropriations clause at the constitutional convention of N according to madison 's notes + to the extent they did their concern was to ensure fiscal accountability + moreover the <unk> believed that the nation needed a <unk> executive with the independence and resources to perform the executive functions that the confederation congress had performed poorly under the articles of confederation + it would <unk> that objective if the appropriations clause technically a <unk> on legislative power could be read as placing the president on congress 's short <unk> making the executive consist of the president and every member of congress + as it went to the conference panel now <unk> the appropriations bill for the executive office of the president for fiscal N contained some <unk> attempts by congress to rewrite the constitution under the <unk> of protecting the public 's money + during the coming weeks president bush must decide whether to veto the bills containing them or alternatively to sign these bills into law with a statement declaring their <unk> on executive power to be in violation of article ii and thus <unk> and <unk> + the N appropriations legislation attempts to strip the president of his powers to make certain appointments as provided by article ii + article ii places on the president the duty to <unk> and by and with the advice and consent of the senate <unk> <unk> judges and other officers of the u.s. + it also <unk> the president to make <unk> appointments without senate approval the president shall have power to fill up all <unk> that may happen during the <unk> of the senate by granting commissions which shall expire at the end of their next session + yet section N of the appropriations bill for the executive office provides no part of any <unk> for the current fiscal year contained in this or any other act shall be paid to any person for the filling of any position for which he or she has been <unk> after the senate has voted not to approve the nomination of said person + thus with one brief passage in an appropriations bill congress <unk> the president 's power to make <unk> appointments under article ii + section N also imposes unconstitutional conditions on the president 's ability to <unk> candidates of his choosing + the language of the appropriations rider implies that any nomination to any position of a rejected <unk> will result in the president being denied funding to pay that person 's salary + the president could probably not avoid this restriction by choosing people willing to serve without pay because the <unk> act prohibits voluntary service to the government + the N appropriations bills also contain a number of <unk> provisions that violate the recommendation clause in article ii of the constitution + <unk> provisions which might be called <unk> laws as well prevent the executive branch from even looking at certain policy options let alone from recommending them to congress + such laws violate the provision in article ii that requires the president to make recommendations to congress but which gives the president the discretion to select the subject matter of those recommendations + typically these laws seek to prevent executive branch officials from <unk> into whether certain federal programs make any economic sense or proposing more <unk> alternatives to regulations + probably the most <unk> example is a <unk> in the appropriations bill for the executive office that prevents the president 's office of management and budget from <unk> agricultural marketing orders to any <unk> scrutiny + there is something <unk> suspect about congress 's <unk> the executive from even studying whether public funds are being wasted in some favored program or other + perhaps none of the unconstitutional conditions contained in the appropriations bills for fiscal N better illustrates congress 's attempt to <unk> executive power than section N of the <unk> bill none of the funds made available <unk> to the provisions of this act shall be used to implement <unk> or enforce any regulation which has been <unk> <unk> to a resolution of <unk> <unk> adopted in <unk> with the applicable law of the united states + this provision amounts to a legislative veto over the president 's execution of the law since a <unk> resolution could be said to be <unk> adopted even though it would require neither <unk> action in congress nor presentation to the president for his signature or veto + the supreme court 's decision in <unk> v. <unk> held that legislative <unk> are unconstitutional + president bush should veto appropriations acts that contain these kinds of unconstitutional conditions on the president 's ability to <unk> his duties and exercise his prerogatives + if president bush fails to do so in his first year he will <unk> congress for the remainder of his presidency to rewrite article ii of the constitution to suit its purposes + what becomes custom in the bush administration will only become more difficult for future presidents including democrats to undo + president reagan learned that lesson + by N <unk> jim wright was discussing arms control in moscow with mikhail gorbachev and then attempting to direct the president through an appropriations rider to treat the soviets as though the senate had ratified salt ii + if a veto is <unk> because it would leave part of the executive branch <unk> the president could sign the appropriations bills into law and <unk> a power of <unk> declaring the rider restricting his article ii powers to be unconstitutional and <unk> + the constitution does not <unk> give the president such power + however the president does have a duty not to violate the constitution + the question is whether his only means of defense is the veto + <unk> of appropriations riders that trespass on the president 's duties and <unk> under article ii would be different from the line-item veto + as discussed in the context of controlling federal spending the line-item veto is characterized as a way for the president to <unk> perfectly constitutional provisions in a spending bill that are <unk> merely because they conflict with his policy objectives + the <unk> of unconstitutional conditions in an appropriations bill would be a power of far more limited <unk> + one could argue that it is not an <unk> of a item veto at all for the president by <unk> a power of <unk> to resist unconstitutional conditions in legislation that violate the separation of powers + there is no downside if the president asserts a right of <unk> over unconstitutional conditions in the fiscal N appropriations bills + if congress does nothing president bush will have won + if congress takes the dispute to the supreme court assuming it can establish standing to sue president bush might win + in that case he might receive an opinion from the court that is a <unk> of the president 's right to perform the duties and exercise the prerogatives the <unk> thought should be <unk> to the executive + if president bush loses at the court it might be disappointing as morrison v. <unk> was for the reagan administration + but the presidency would be no worse off than it is now + moreover the <unk> would have received a valuable <unk> lesson in how the separation of powers works in practice + as it stands now congress <unk> after the reagan administration that the white house will take unconstitutional provisions in appropriations bills lying down + president bush should set things straight + if he does not he will help realize madison 's fear in the <unk> no. N of a legislature everywhere extending the <unk> of its activity and drawing all powers into its <unk> <unk> + mr. <unk> served as an attorney in the reagan administration + his longer analysis of executive power and the appropriations clause is to appear in the duke law journal later this year + despite one of the most devastating <unk> on record net cash income in the farm belt rose to a new high of $ N billion last year + the previous record was $ N billion in N according to the agriculture department + net cash income the amount left in farmers ' pockets after <unk> expenses from gross cash income increased in N states in N as the drought cut into crop yields and drove up commodity prices the department 's economic research service reported yesterday + most of those states set farm income records + the worst crop damage occurred in the midwestern corn belt and the northern great plains + what saved many farmers from a bad year was the opportunity to reclaim large quantities of grain and other crops that they had <unk> to the government under <unk> loan programs + with prices soaring they were able to sell the <unk> commodities at considerable profit the agency 's <unk> report said + in less <unk> areas meanwhile farmers who had little or no loss of production <unk> greatly from the higher prices + to the surprise of some analysts net cash income rose in some of the <unk> states including indiana illinois nebraska and the <unk> + analysts attributed the increases partly to the $ N billion <unk> package enacted by congress + last year 's record net cash income confirms the farm sector 's rebound from the agricultural depression of the early 1980s + it also helps explain the reluctance of the major farm <unk> and many lawmakers to make any significant changes in the N farm program next year + commodity prices have been rising in recent years with the farm price index hitting record <unk> earlier this year as the government curtailed production with <unk> programs to reduce <unk> surpluses + at the same time export demand for u.s. wheat corn and other commodities strengthened said keith collins a department analyst + farmers also benefited from strong livestock prices as the nation 's cattle inventory dropped close to a 30-year low + all of these forces came together in N to benefit agriculture mr. collins said + california led the nation with $ N billion in net cash income last year followed by texas $ N billion iowa $ N billion florida $ N billion and minnesota $ N billion + iowa and minnesota were among the few major farm states to <unk> a decline in net cash income + despite federal disaster relief the drought of N was a severe financial setback for an estimated N to N farmers according to the department + many lost their farms + department economists do n't expect N to be as good a year as N was + indeed net cash income is likely to fall this year as farm expenses rise and government payments to farmers decline + at the same time an increase of land under <unk> after the drought has boosted production of corn soybeans and other commodities causing a fall in prices that has been only partly <unk> by heavy grain buying by the soviets + last year government payments to farmers slipped to less than $ N billion from a record $ N billion in N + payments are expected to range between $ N billion and $ N billion this year + after years of struggling the los angeles herald examiner will publish its last edition today shut down by its parent hearst corp. following unsuccessful efforts to sell the venerable newspaper + the demise of the <unk> herald once the nation 's largest afternoon newspaper with circulation exceeding N turns the country 's second-largest city into a <unk> town at least in some <unk> + the los angeles times with a circulation of more than N million dominates the region + but it faces stiff competition in orange county from the orange county register which sells more than N copies a day and in the san fernando valley from the los angeles daily news which sells more than N + nearby cities such as pasadena and long beach also have large <unk> + in july closely held hearst based in new york put the paper on the block + speculation had it that the company was asking $ N million for an operation said to be losing about $ N million a year but others said hearst might have virtually given the paper away + an attempted buy-out led by john j. <unk> chief operating officer never materialized and a stream of what one staff member dismissed as <unk> and <unk> had filed through since + the prospective buyers included investor marvin davis and the toronto sun + the death of the herald a <unk> paper in a freeway town was perhaps inevitable + los angeles is a <unk> <unk> newspaper market and advertisers seemed to feel they could buy space in the <unk> times then target a particular area with one of the regional <unk> + the herald was left in limbo + further the herald seemed torn <unk> between keeping its <unk> hearst <unk> blue-collar and <unk> and trying to provide a <unk> upscale alternative to the sometimes <unk> times + hearst had <unk> with a conversion to tabloid format for years but never executed the plan + the herald joins the baltimore <unk> which <unk> and the boston <unk> which was sold as <unk> of the old hearst newspaper empire abandoned by the company in the 1980s + many felt hearst kept the paper alive as long as it did if marginally because of its place in family history + its <unk> offices were designed by architect <unk> morgan who built the hearst castle at san <unk> + william <unk> hearst had kept an apartment in the spanish <unk> building + analysts said the herald 's demise does n't necessarily represent the overall condition of the newspaper industry + the herald was a <unk> from a <unk> age said j. <unk> noble a media analyst with painewebber inc + actually the long deterioration in daily newspapers shows signs of coming to an end and the industry looks pretty healthy + founded as the examiner in N by mr. hearst the herald was <unk> by a bitter <unk> strike that began in N and cut circulation in half + financially it never recovered <unk> it had its moments + in N hearst hired editor james <unk> who <unk> the editorial product considerably + he and his successor mary anne <unk> restored respect for the editorial product and though in recent years the paper had been <unk> along on limited resources its <unk> were notable + for example the herald consistently beat its <unk> rival on disclosures about los angeles mayor tom bradley 's financial dealings + the herald 's sports coverage and arts criticism were also highly regarded + robert j. <unk> vice president and general manager of hearst newspapers stood up in the paper 's <unk> yesterday and announced that no buyers had stepped forward and that the paper would <unk> putting more than N full-time employees out of work + hearst said it would provide employees with a placement service and pay them for N days + some <unk> employees will receive additional benefits the company said + hours after the announcement representatives of the orange county register were in a bar across the street recruiting + the reaction in the <unk> was emotional + i 've never seen so many people <unk> in one place at one time said bill johnson an assistant city editor + so long l.a. was chosen as the paper 's final headline + i 'm doing the main story and i 'm already two beers drunk said reporter andy <unk> whom the times hired away several years ago but who returned to the herald out of preference + his wife also works for the paper as did his father + outside a young <unk> filling a news box with an extra edition <unk> herald examiner closes refused to take a reader 's quarter + forget it he said as he handed her a paper + it does n't make any difference now + olympia broadcasting corp. said it did n't make a $ N million semiannual interest payment due yesterday on $ N million of senior subordinated debentures + the <unk> owner and <unk> said it was trying to obtain additional working capital from its senior secured lenders and other financial institutions + it said it needs to make the payment by dec. N to avoid a default that could lead to an acceleration of the debt + in september the company said it was seeking offers for its five radio stations in order to concentrate on its programming business + if you 'd really rather have a buick do n't leave home without the american express card + or so the <unk> might go + american express co. and general motors corp. 's beleaguered buick division are joining forces in a promotion aimed at boosting buick 's sales while encouraging broader use of the american express card + the companies are giving four-day <unk> for two to buick buyers who charge all or part of their down payments on the american express green card + they have begun sending letters explaining the program which began oct. N and will end dec. N to about five million card holders + neither company would disclose the program 's cost + buick approached american express about a joint promotion because its card holders generally have a good credit history and are good at making payments says a spokeswoman for the division + american express also represents the upscale image we 're trying to project she adds + buick has been seeking for the past few years to restore its reputation as the doctor 's car a product for upscale professionals + sales were roughly flat in the N model year compared with a year earlier though industry sales fell + but since the N model year began oct. N buick sales have plunged N N + for american express the promotion is part of an effort to broaden the use of its card for retail sales where the company expects to get much of the future growth in its card business + traditionally the card has been used mainly for travel and entertainment expenses + <unk> <unk> an american express executive vice president says the promotion with buick is his company 's first with an auto maker but hopefully will be the first of many in the company 's effort to promote its green card as the total <unk> card + to that end american express has been signing up gasoline companies car repair shops tire companies and car dealers to accept the card + many auto dealers now let car buyers charge part or all of their purchase on the american express card but few card holders realize this mr. <unk> says + until now however buyers who wanted to finance part of a car purchase through general motors acceptance corp. could n't put their down payment on a charge card because of possible conflicts with <unk> and state disclosure laws over finance rates says a spokesman for the gm finance arm + but gmac approved the buick program he says because the american express green card requires payment in full upon billing and so does n't carry any finance rates + mr. <unk> says american express considers gm and buick very sophisticated direct-mail marketers so by joining forces with them we have managed to maximize our direct-mail capability + in addition buick is a relatively respected <unk> among american express card holders says an american express spokeswoman + when the company asked members in a mailing which cars they would like to get information about for possible future purchases buick came in fourth among u.s. cars and in the top N of all cars the spokeswoman says + american express has more than N million card holders in the u.s. and over half have the green card + gmac <unk> the <unk> list for holders more than N years old with household incomes over $ N who had n't missed any payments the buick spokeswoman says + some N million of the five million who will get letters were <unk> for credit with gmac + these N million people also are eligible to get one percentage point off gmac 's advertised finance rates which start at N N for two-year loan contracts + a spokesman for visa international 's u.s. subsidiary says his company is using promotions to increase use of its cards but does n't have plans for a <unk> similar to the american <unk> link + three divisions at american express are working with buick on the promotion the establishment services division which is responsible for all merchants and companies that accept the card the travel division and the merchandise sales division + the vacation packages include hotel <unk> and in some cases tours or tickets to local <unk> but not meals + <unk> are chicago <unk> las vegas nev. los angeles miami beach fla. new orleans new york <unk> fla. san francisco and washington d.c. + a buyer who chooses to fly to his <unk> must pay for his own ticket but gets a companion 's ticket free if they fly on united airlines + in <unk> of the vacation buyers can choose among several prizes including a <unk> <unk> or a stereo videocassette recorder + card holders who receive the letter also are eligible for a <unk> with buick cars or a hawaii vacation as prizes + if they <unk> a buick they get an american express <unk> + this is n't buick 's first <unk> promotion + a few years ago the company offered two <unk> tickets on trans world airlines to buyers of its <unk> luxury car + the promotion helped <unk> sales exceed the division 's forecast by more than N N buick said at the time + the united kingdom high court declared illegal a variety of interest-rate swap transactions and options deals between a london borough council and commercial banks + the ruling could lead to the cancellation of huge bank debts the london borough of <unk> and <unk> ran up after losing heavily on swap transactions + as many as N u.k. and international banks stand to lose several hundred million pounds should the decision be upheld and set a precedent for other municipalities + an appeal is expected + in response to the ruling <unk> futures swiftly plunged more than a point yesterday before recovering much of the loss by the end of the session + <unk> or british government bonds which also fell sharply initially <unk> some of the losses to end about N point lower + the council which is alleged to have engaged in over N deals valued at over # N billion $ N billion lost millions of pounds from <unk> swap deals + at one point <unk> is reported to have accounted for as much as N N of the sterling market in interest-rate swap dealings + when two parties engage in an interest-rate swap they are betting against each other on future rates + thus an institution obligated to make fixed-rate interest payments on debt swaps the payments with another making floating-rate payments + in most of the british transactions the municipalities agreed to make floating-rate payments to banks which would make fixed-rate payments + as interest rates rose municipalities owed the banks more than the banks were paying them + the court hearing began in early october at the request of anthony <unk> district <unk> for <unk> who argued that local <unk> are n't vested with constitutional authority to engage in such <unk> activities + the council backed the audit commission 's stand that the swap transactions are illegal + although the <unk> and <unk> council was by far the most active local authority engaging in such <unk> transactions the court decision could set a precedent for similar transactions by N other local <unk> + while this court ruling was only on <unk> it will obviously be very <unk> in other cases of a similar nature a <unk> representing one of the banks said + already N local <unk> have refused to honor fees and payments to banks incurred during various swaps dealings + other financial institutions involved include barclays bank plc midland bank plc security pacific corp. chemical banking corp. 's chemical bank citicorp 's citibank and mitsubishi finance international + if the banks <unk> all <unk> of appeal it is possible that they would seek to have the <unk> ruling work both ways some market sources said + banks could seek to recover payments to local authorities in <unk> where the banks made net payments to <unk> + officials from the various banks involved are expected to meet during the next few days to consider other arrangements with local authorities that could be questionable + the banks have N days to file an appeal against the ruling and are expected to do so shortly + in the aftermath of the stock market 's <unk> 190-point drop on oct. N kidder peabody & co. 's N stockbrokers across the country began a telephone and <unk> campaign aimed at <unk> the country 's second-largest program trader + the target of their <unk> + their own employer kidder peabody + since october 's <unk> wall street has been shaken by an explosion of <unk> against program trading the computer-driven <unk> trades of huge baskets of stocks and futures that can send stock prices reeling in minutes + but the <unk> fight over program trading is about much more than a volatile stock market + the real battle is over who will control that market and reap its huge rewards + program trading itself according to many <unk> who have studied it is merely caught in the middle of this battle unfairly labeled as the evil driving force of the marketplace + the evidence indicates that program trading did n't in fact cause the market 's sharp fall on oct. N though it may have <unk> it + on one side of this power struggle stand the forces in <unk> on wall street the new guard consisting of high-tech computer <unk> at the major brokerage firms their pension fund clients with <unk> pools of money and the traders at the fast-growing chicago futures exchanges + these are the main proponents of program trading + defending their <unk> are wall street 's old guard the traditional <unk> money managers tens of thousands of stock brokers the new york stock exchange 's listed companies and the <unk> floor traders known as specialists who make markets in their stocks + so far wall street 's old guard seems to be winning the program-trading battle successfully <unk> public and congressional opinion to <unk> their <unk> + the chicago mercantile exchange a major futures marketplace yesterday announced the addition of another layer of trading halts designed to slow program traders during a rapidly falling stock market and the big board is expected today to approve some additional restrictions on program trading + <unk> by charges that their greed is turning the stock market into a <unk> <unk> almost all the big investment banking houses have abandoned index arbitrage a common form of program trading for their own accounts in the past few days + a few such as giant merrill lynch & co. now refuse even to do index arbitrage trades for clients + the old guard 's assault on program trading and its practitioners has been fierce and broad-based in part because some old guard members feel their very <unk> is at stake + some such as traditional money manager neuberger & <unk> have taken out national newspaper advertisements demanding that market regulators stop the numbers <unk> on wall street + big board stock specialists in a bold palace <unk> began shortly after oct. N to telephone the corporate executives of the companies whose stock is listed on the big board to have them pressure the exchange to ban program trading + charles wohlstetter the chairman of contel corp. who is <unk> other <unk> to the <unk> trading cause says he has received <unk> letters offering support + they said <unk> without a single exception do n't even compromise + kill it he says + wall street 's new guard is n't likely to take all this lying down for long however + its new products and trading techniques have been highly profitable + program trading money managers have gained control over a big chunk of the invested funds in this country and the pressures on such money managers to produce consistent profits has <unk> them to the ability to move rapidly in and out the market that program trading gives them + what 's more the last time major wall street firms said they were getting out of program trading in the aftermath of the N crash they waited a few months and then <unk> back into it + even some members of the old guard despite their current advantage seem to be <unk> that the future belongs with the new guard + last week robert m. bradley one of the big board 's most respected floor traders and head of a major traders ' organization surrendered + he sold his exchange seat and wrote a bitter letter to big board chairman john j. phelan jr. in which he said the big board is too focused on machines rather than people + he said the exchange is headed for a real crisis if program trading is n't <unk> + i do not want my money invested in what i consider as nothing more than a casino mr. bradley wrote + the battle has turned into a civil war at some firms and organizations causing internal <unk> and <unk> employee against employee + at kidder a unit of general electric co. and other big brokerage firms stockbrokers battle their own firm 's program traders a few floors away + corporations like contel <unk> program trading yet contel has in the past hired pension fund managers like bankers trust co. that are also big program traders + the big board the nation 's premier stock exchange is sharply divided between its floor traders and its top executives + its entrenched N stock specialists firms are fighting <unk> and <unk> against programs + but the big board 's leadership over the specialists ' protests two weeks ago began trading a new stock basket product designed to facilitate program trading + a lot of people would like to go back to N before program trading mr. phelan said this week + i would like to go back to N + but we are not going back to N + again and again program-trading 's critics raise the casino theme + they say greedy market <unk> have made a <unk> of the nation 's <unk> system turning the stock market into a big gambling <unk> with the odds heavily <unk> against the small investor + the public did n't come to the market to play a game they can go to <unk> betting for that says a. <unk> murray chairman of <unk> murray foster securities a traditional money management firm + the program traders on the other hand <unk> old-fashioned stock pickers as the <unk> of the industry + critics like mr. murray are looking for <unk> and people who use computers to trade are a convenient <unk> says j. thomas allen president of advanced investment management inc. a pittsburgh firm that runs a $ N million fund that uses index arbitrage + just a blind fear of the unknown is causing them to <unk> the regulators for protection + for all the furor there is nothing particularly complex about the concept of stock-index arbitrage the most controversial type of <unk> program trading + like other forms of arbitrage it merely seeks to take advantage of <unk> discrepancies in the price of a single product in this case a basket of stocks in different markets in this case the new york stock exchange and the chicago futures markets + that divergence is what stock index traders seek + when it occurs the traders place orders via computers to buy the basket of stocks such as the N stocks that constitute the standard & poor 's N stock index in whichever market is cheaper and sell them in the more expensive market they lock in the difference in price as profit + such program trades which can involve the purchase or sale of millions of dollars of stock occur in a matter of seconds + a program trade of $ N million of stock typically earns a <unk> profit of $ N + to keep program-trading units profitable in the eyes of senior brokerage executives traders must seize every opportunity their computers find + the speed with which such program trades take place and the volatile price movements they can cause are what program trading critics <unk> to <unk> + if you continue to do this the investor becomes frightened any investor the odd <unk> mutual funds and pension funds says larry <unk> managing partner at neuberger & <unk> + but many experts and traders say that program trading is n't the main reason for stock-market gyrations + i have not seen one <unk> of evidence to support restrictions on program trading says a <unk> university finance professor <unk> stoll an authority on the subject + says the big board 's mr. phelan volatility is greater than program trading + the oct. N plunge was triggered not by program traders but by news of the <unk> of the $ N billion buy-out of ual corp + unable to unload ual and other airline shares takeover-stock speculators or risk arbitragers dumped every blue-chip stock they had + while program trades swiftly kicked in a circuit breaker that halted trading in stock futures in chicago made some program trading impossible + susan del <unk> head trader at travelers investment management co. says critics are ignoring the role the takeover stock <unk> is taking in the market as a source of volatility + many <unk> are <unk> she says and they have to sell when things look like they fall apart + like virtually everything on wall street the program-trading battle is over money and the <unk> have been losing out on <unk> of it to the new guard in recent years + take the traditional money managers or stock pickers as they are <unk> known among the computer <unk> + traditional stock managers like to charge N cents to N cents for every $ N they manage for big institutional investors and higher fees for smaller investors + yet many such managers consistently fail to even keep up with much less beat the returns of standard <unk> like the s&p + not surprisingly <unk> money managers have been losing clients to giant stock-index funds that use computers to <unk> portfolios so they mirror the s&p N + the <unk> charge only a few pennies per $ N managed + today about $ N billion or N N of all <unk> stock investments is held by index funds + the new wall street of computers and automated trading threatens to make <unk> of the N big board <unk> firms + these small but influential floor brokers long have earned fat returns of N N to N N a year on their capital by virtue of their monopoly in making markets in individual stocks + the specialists see any step to electronic trading as a death <unk> + and they believe the big board under mr. phelan has abandoned their interest + the son of a specialist and once one himself mr. phelan has nonetheless been <unk> with products like the new stock basket that his former colleagues dislike so much to keep index funds and other program traders from taking their business to overseas markets + meanwhile specialists ' trading risks have skyrocketed as a result of stock-market volatility + when the sell programs hit you can hear the order printers start to go on the big board trading floor says one specialist there + the buyers walk away and the specialist is left alone as the buyer of last resort for his stable of stocks he contends + no one is more unhappy with program trading than the nation 's stockbrokers + they are still trying to lure back small investors spooked by the N stock-market crash and the market 's swings since then + small investors are absolutely <unk> that wall street is <unk> the deck against them and these wide swings are scaring them to death says raymond a. mason chairman of regional broker legg mason inc. in baltimore + stockbrokers ' business and pay has been falling + last year the average broker earned $ N N N lower than in N + corporate executives <unk> that their company 's stock has been transformed into a <unk> piece of a stock-index basket + index traders who buy all N stocks in the s&p N often do n't even know what the companies they own actually do complains andrew <unk> chairman of champion international corp + do you make <unk> or <unk> + oh you 're in the paper business is one reaction mr. <unk> says he 's gotten from his big institutional shareholders + by this september program traders were doing a record N N of the big board 's average daily trading volume + among the top practitioners were wall street blue <unk> morgan stanley & co. kidder peabody merrill lynch salomon brothers inc. and painewebber group inc + but then came oct. N and the negative publicity <unk> by the old guard particularly against index arbitrage + the <unk> ' strategy for the moment is to <unk> down and let the furor die + there 's a <unk> psychology right now says the top program-trading official at a wall street firm + wall street 's cash <unk> has been <unk> but i do n't think anyone has proven that index arbitrage is the problem + too much money is at stake for program traders to give up + for example stock-index futures began trading in chicago in N and within two years they were the fastest-growing futures contract ever launched + stock futures trading has <unk> dozens of <unk> in their <unk> and <unk> + now on a good day chicago 's stock-index traders trade more dollars worth of stock futures than the big board trades in stock + now the stage is set for the battle to play out + the <unk> are getting some helpful <unk> from congress + program traders ' power to create total panic is so great that they ca n't be allowed to have their way says rep. edward markey a massachusetts democrat + we have to have a system that says to those largest investors + sit down + you will not panic + you will not put the financial system in jeopardy + but the prospects for legislation that targets program trading is unlikely anytime soon + many people including the big board think that it 's too late to put the <unk> back in the bottle + the big board 's directors meet today to approve some program-trading restrictions but a total ban is n't being considered big board officials say + you 're not going to stop the idea of trading a basket of stocks says <unk> 's prof. stoll + program trading is here to stay and computers are here to stay and we just need to understand it + short of a total ban some <unk> have proposed several <unk> reforms which they say would take away certain advantages program traders currently enjoy in the marketplace that other investors do n't + one such proposal regarding stock-index futures is an increase in the margin requirement or the <unk> payment of cash needed to trade them to about the same level as the margin requirement for stocks + currently margins on stock futures purchases are much lower roughly N N compared with N N for stocks making the futures market much faster and potentially more speculative + program trading critics also want the federal reserve board rather than the futures industry to set such margins + futures traders respond that low margins help keep their markets active + higher margins would chase away dozens of smaller traders who help larger traders buy and sell they say + another proposed reform is to have program traders answer to an uptick rule a reform instituted after the great crash of N that protects against stocks being <unk> beaten downward by those seeking to profit from lower prices namely short sellers + the big board 's uptick rule prevents the short sale of a stock when the stock is falling in price + but in N program traders received what amounted to an exemption from the uptick rule in certain situations to make it easier to link the stock and futures markets + a <unk> of the uptick rule for program traders would slow their activity considerably + program traders argue that a <unk> of the rule would destroy the pricing efficiency of the futures and stock markets + james a. white contributed to this article + <unk> <unk> + big board chairman john phelan said yesterday that he could support letting federal regulators suspend program trading during wild <unk> swings + thus the <unk> psychology of recent days picks up new impetus + index arbitrage is a common form of program trading + as usually practiced it takes advantage of a rather basic concept two separate markets in different locations trading basically the same <unk> ca n't trade them for long at prices that are widely different + in index arbitrage the widget is the s&p N and its price is constantly compared between the futures market in chicago and the stock markets largely in new york + to profit from an index-arbitrage opportunity someone who owns the s&p N widget in new york must sell it and replace it with a cheaper s&p N widget in chicago + if the money manager performing this service is being paid by his clients to match or beat the return of the s&p N index he is likely to remain fully invested at all times + few if any <unk> managers will risk <unk> performance by owning more than N N exposure to stocks and equally few will want to own less than a N N position should stocks rise + by constantly seeking to own the cheapest widget index-arbitrage traders hope to add between N N and N N to the annual return of the s&p N + that represents a very thin excess return certainly far less than what most fundamental stock pickers claim to seek as their performance objective + the fact that a vast majority of <unk> money managers fail to beat the s&p N may contribute to the <unk> surrounding the issue + as more managers pursue the index-arbitrage strategy these small opportunities between markets will be reduced and eventually eliminated + the current opportunities arise because the process for executing a buy or sell order in the actual stocks that make up the s&p N is more <unk> than <unk> in the futures market + the new york stock exchange 's attempt to introduce a new portfolio basket is evidence of investors ' <unk> to make fast and easy transactions of large numbers of shares + so if index arbitrage is simply taking advantage of thin <unk> between two markets for the same widget how did program trading <unk> into the evil <unk> that is <unk> the <unk> of so many observers + all arguments against program trading even those pressed without fact conclude with three expected results after reforms are implemented N reduced volatility N a long-term investment focus and N a level playing field for the small investor + but many of these reforms are <unk> even harmful + reducing volatility + an index-arbitrage trade is never executed unless there is sufficient difference between the markets in new york and chicago to cover all transaction costs + arbitrage does n't cause volatility it <unk> to it + think about what causes the difference in prices between the two markets for s&p N stocks usually it is large investors <unk> a buy or sell in chicago + a large investor will likely cause the futures market to decline when he sells his futures + arbitrage simply transfers his selling pressure from chicago to new york while <unk> as a buyer in chicago + the start of the whole process is the key someone must fundamentally increase or decrease his ownership in <unk> to make widget prices move + why does this large hypothetical seller trade in chicago instead of new york + perhaps he is willing to sacrifice to the arbitrage trader some small profit in order to get quick and certain execution of his large trade + in a competitive market this investor has many ways to execute his transactions and he will have more alternatives both foreign and domestic if his volume is profitable for an exchange to handle + if not chicago then in new york if not the u.s. then overseas + volatility surrounding his trades occurs not because of index arbitrage but because his is a large addition or <unk> to a widget market with <unk> liquidity + eliminate arbitrage and liquidity will decline instead of rising creating more volatility instead of less + the speed of his transaction is n't to be feared either because faster and cleaner execution is desirable not <unk> + if slowing things down could reduce volatility stone <unk> should become the trade ticket of the future + encouraging long-term investing + we must be very cautious about <unk> investors as long-term or short-term + policies designed to encourage one type of investor over another are <unk> to placing a sign over the big board 's door saying buyers welcome sellers please go away + the ultimate goal of any investor is a profit motive and regulators should not concern themselves with whether investors are sufficiently focused on the long term + a free market with a profit motive will attract each investor to the liquidity and risks he can <unk> + in point of fact volatility as measured by the annualized standard deviation of daily stock price movements has frequently been much higher than it is today + periods before the advent of futures or program trading were often more volatile usually when fundamental market conditions were <unk> change N N and N for example + it is interesting to see the fundamental stock pickers <unk> <unk> on program trading when the markets decline while <unk> the great values still <unk> as the markets rise + could rising volatility possibly be related to uncertainty about the economics of stocks instead of the evil <unk> of program-trading <unk> + some of the proposed <unk> for what is labeled program-trading volatility could be far worse than the perceived problem + in using program trading as a <unk> boy <unk> investors stand to gain the high ground in wooing small investors for their existing <unk> products + they may however risk bringing some damaging <unk> from outside the markets themselves + how does a nice new tax say N N on any financial transaction sound + that ought to make sure we 're all thinking for the long term + getting a level playing field + this argument is perhaps the most interesting one for <unk> program trading not because of its merits but because of the firms <unk> the cause + the <unk> of these reformers are money managers who cater to smaller investors + they continually advise their clients on which individual stocks to buy or sell while their clients continue to hope for superior performance + even with mutual funds the little investor continues to <unk> high fees high commissions and poor performance while <unk> managers slowly <unk> a better record with lower fees lower commissions and less risk + yet our efforts are somehow less noble than those of an investment expert <unk> <unk> press <unk> on each company he follows + almost all new regulation is introduced in the interests of protecting the little guy and he invariably is the one least able to cope with its consequences + if spreads available from index arbitrage are so enormous surely any sizable mutual-fund company could profit from offering it to small investors + the sad reality is that the retail investor continues to pursue <unk> performers first while leaving institutions to <unk> with basis points of performance on large sums of money quarter by quarter + <unk> index funds just are n't <unk> enough to justify the high fees and commissions that retail customers frequently pay and that institutional customers refuse to pay + each new trading <unk> is likely to be beaten by institutions seeking better ways to serve their <unk> clients here or overseas + <unk> new trading <unk> will only make things harder on the least sophisticated investors + so what is next for program trading + left to its own devices index arbitrage will become more and more efficient making it harder and harder to do profitably + spreads will become so tight that it wo n't matter which market an investor chooses arbitrage will prevent him from gaining any temporary profit + if government or private <unk> insist however on introducing greater <unk> between the markets limits on price moves <unk> execution higher margin requirements taxation etc. the end loser will be the markets themselves + instead we ought to be inviting more liquidity with cheaper ways to trade and transfer capital among all participants + mr. allen 's pittsburgh firm advanced investment management inc. <unk> program trades for institutions + some democrats in congress are warning that a complicated new funding device for the two federal antitrust agencies could result in further cutbacks in a regulatory area already reduced sharply in recent years + the funding mechanism which has received congressional approval and is expected to be signed by president bush would affect the antitrust operations of the justice department and the federal trade commission + as a part of overall efforts to reduce spending congress cut by $ N million the bush administration 's request for antitrust enforcement for fiscal N which began oct. N + to offset the reduction congress approved a $ N fee that investors and companies will have to pay each time they make required filings to antitrust regulators about mergers acquisitions and certain other transactions + some democrats led by rep. jack brooks d. texas unsuccessfully opposed the measure because they fear that the fees may not fully make up for the budget cuts + but justice department and ftc officials said they expect the filing fees to make up for the budget reductions and possibly exceed them + it could operate to <unk> our budget james <unk> the justice department 's antitrust chief said in an interview + under measures approved by both houses of congress the administration 's request for $ N million for the antitrust division would be cut $ N million + the ftc budget request of $ N million about $ N million of which would go for antitrust enforcement would also be cut by $ N million + the administration had requested roughly the same amount for antitrust enforcement for fiscal N as was appropriated in fiscal N + the offsetting fees would apply to filings made under the hart-scott-rodino act + under that law parties proposing mergers or acquisitions valued at $ N million or more must notify ftc and justice department antitrust regulators before completing the transactions + currently the government charges nothing for such filings + proponents of the funding arrangement predict that based on recent filing levels of more than N a year the fees will yield at least $ N million this fiscal year or $ N million more than the budget cuts + when you do that there is not a cut but there is in fact a program increase of $ N million each for the ftc and the justice department rep. neal smith d. iowa said during house debate + but rep. don edwards d. calif responded that a recession could <unk> merger activity reducing the amount of fees collected + the antitrust staffs of both the ftc and justice department were cut more than N N in the reagan administration and enforcement of major merger cases fell off drastically during that period + today is not the time to signal that congress in any way sanctions the dismal state into which antitrust enforcement has fallen mr. edwards argued + any money in excess of $ N million collected from the fees in fiscal N would go to the treasury at large + corporate lawyers said the new fees would n't inhibit many mergers or other transactions + though some lawyers reported that prospective <unk> were scrambling to make filings before the fees take effect government officials said they had n't noticed any surge in filings + fall ballot issues set a record for <unk> elections + <unk> elections attract relatively few ballot issues + but the N fall total of N while well below N activity shows a steady <unk> up in citizen <unk> and initiatives says patrick <unk> editor of family law and democracy report + he says the N <unk> issues on state <unk> this fall represent the most in any <unk> this decade + ballot questions range from a maine initiative on banning cruise missiles to a <unk> on increasing the north <unk> income tax + ballot watchers say attention already is focused on the N elections + in california two petition drives for next year 's election are essentially finished says david <unk> author of citizen lawmakers + mr. <unk> cites three completed efforts in oklahoma + hot ballot topics are expected to be abortion the environment and insurance reform + taking a <unk> from california more politicians will launch their campaigns by backing initiatives says david <unk> of <unk> young university + photograph collecting gains new <unk> as prices rise + price records are being set at auctions this week + at christie 's a <unk> of N prints from alfred <unk> 's equivalents series sold for $ N a <unk> record + other works also have been exceeding price estimates + in part prices reflect development of a market structure based on such <unk> as the number of prints + this information used to be poorly <unk> and largely <unk> says beth <unk> of sotheby 's + there is finally some sort of sense in the market she says + corporations and <unk> are among the serious buyers giving greater market stability says robert <unk> of the photograph <unk> + when i see prints going into the hands of institutions i know they are n't going to come back on the market + most in demand classic photographs by masters such as <unk> and man ray + but much contemporary work is also <unk> a great deal of money says miles <unk> of the international center of photography + dialing N brings callers a growing number of services + currently a $ N <unk> business N telephone service is expected to hit $ N million next year and near $ N billion by N as uses for the service continue to expand says joel gross of donaldson lufkin & jenrette inc + the service which costs the caller from N cents to $ N a minute currently is dominated by celebrity <unk> <unk> and <unk> lines + but more serious applications are in the wings and that is where the future growth is expected + i 'm starting to see more business transactions says <unk> west of american telephone & telegraph co. noting growing interest in use of N service for stock sales software <unk> and even service contracts + colleges she says are <unk> registration through N service + charities test the waters but they face legal barriers to electronic fund raising + the thing that will really break this market right open is merchandising ms. west says + much of the N service will <unk> to N predicts jack <unk> general manager of us <unk> 's N product + family <unk> are improving recovery rates of patients at columbia hospital milwaukee + patients who receive <unk> or <unk> visitors are found to have lower blood pressure and improved appetite and be more <unk> to therapy says mary ann <unk> program coordinator + tired of trimming + <unk> <unk> & co. offers a <unk> christmas tree that <unk> the need to string lights + the $ N tree is designed to send <unk> changing <unk> light to dozens of <unk> <unk> + medicine transplant growth of japanese trade and travel <unk> beth israel medical center new york to set up a <unk> medical practice + funded by a $ N million gift from <unk> marine & fire insurance the service will follow japanese medical <unk> including emphasis on <unk> medicine + diaper services make a comeback amid growing environmental concerns + concerned about shrinking <unk> and the safety of chemicals used in <unk> <unk> parents are returning to the <unk> diaper + tiny <unk> inc. campbell calif. says business is up N N in the past year + we 're gaining N new customers each week says jack <unk> of general health care corp. <unk> n.j + in <unk> n.y. <unk> service 's new marketing push <unk> environmental awareness + among its new customers <unk> centers that previously <unk> the service + the national association of diaper services philadelphia says that since january it has gotten more than N inquiries from people interested in starting diaper services + <unk> <unk> launched a diaper service last year because state college pa. where she lives did n't have one + diaper shortages this summer limited growth at <unk> diaper services <unk> mass. where business is up N N in + also spurring the move to <unk> diaper covers with <unk> fasteners that eliminate the need for safety <unk> + briefs + only N N of new <unk> watch the local news the lowest <unk> in the country says a new study by impact resources inc. columbus ohio + <unk> a <unk> bearing the <unk> of <unk> <unk> is marketed as a $ N tool for <unk> analysis + program trading is a <unk> complains edward <unk> a white plains n.y. investor and electronics sales executive and it 's not to the benefit of the small investor that 's for sure + but although he thinks that it is hurting him he doubts it could be stopped + mr. <unk> 's dislike of program trading is <unk> by many small investors interviewed by wall street journal reporters across the country + but like mr. <unk> few expect it to be halted entirely and a surprising number doubt it should be + i think program trading is basically unfair to the individual investor says leo fields a dallas investor + he notes that program traders have a commission cost advantage because of the quantity of their trades that they have a smaller margin requirement than individual investors do and that they often can figure out earlier where the market is heading + but he blames program trading for only some of the market 's volatility + he also considers the market <unk> and cites the troubles in junk bonds + he adds the market may be giving us another message that a recession is looming + or as <unk> <unk> an interior <unk> in arnold calif. puts it all kinds of funny things <unk> the market these days + but she believes that program trading creates <unk> swings + it 's not a sound thing there 's no inherent virtue in it + she adds that legislation curbing it would be a <unk> good idea + at the charles schwab & co. office in atlanta 's <unk> district a group of investors voices skepticism that federal officials would curb program trading + citing the october N crash glenn miller says it 's like the last crash they threatened but no one did anything + a. donald anderson a <unk> los angeles investor who says the stock market 's fluctuations and gyrations give me the <unk> does n't see much point in <unk> program trading + those who still want to do it will just find some way to get around any attempt to curb it + similarly rick <unk> a <unk> asset manager for a dallas real-estate firm would like to see program trading disappear because i ca n't see that it does anything for the market or the country + yet he is n't in favor of new legislation + i think we 've got enough securities laws he says + i 'd much rather see them dealing with interest rates and the deficit + peter anthony who runs an employment agency in new york <unk> program trading as limiting the game to a few but he also is n't sure it should be more strictly regulated + i do n't want to <unk> it because <unk> it would be like <unk> capitalism he explains + and surprising numbers of small investors seem to be <unk> to greater stock market volatility and say they can live with program trading + glenn <unk> a <unk> new york financial analyst who plays options for his personal account says he is <unk> the market 's volatility into investment decisions + he adds that program trading increases liquidity in the market + you ca n't hold back technology + and the practice should n't be stopped he says because even big players are n't immune to the <unk> of program trading + also in new york israel <unk> an <unk> lawyer comments that program trading increases volatility but i do n't think it should be banned + there 's no <unk> here + the market is just becoming more efficient + <unk> on differences between spot and futures prices is an important part of many financial markets he says + he adds that his shares in a company savings plan are invested in a mutual fund and volatility on a given day may hurt the fund + but i 'm a long-term investor he says + if you were a short-term investor you might be more leery about program trading + jim <unk> of atlanta <unk> program trading because he believes that it can bring the market back up after a plunge + if we have a real bad day the program would say buy he explains + if you could get the <unk> of the program trading you could take advantage of it + what else can a small investor do + scott <unk> a chicago <unk> is going into money-market funds + mr. <unk> says he had just <unk> the $ N he lost in the N crash when he lost more money last oct. N + now he plans to sell all his stocks by the first quarter of N + in october before the market dropped mrs. <unk> of arnold calif. moved to sell the speculative stocks in her family trust so we will be able to withstand all this <unk> caused by program trading + she believes that the only answer for individuals is to buy stocks that 'll weather any storm + <unk> <unk> an <unk> chicago <unk> has become <unk> immune to stock-market <unk> + mrs. <unk> took advantage of low prices after the N crash to buy stocks and has <unk> for other bargains since the oct. N plunge + my stocks are all blue chips she says + if the market goes down i figure it 's paper profits i 'm losing + on the other hand if it goes way sky high i always sell + you do n't want to get yourself too upset about these things + young 's market co. a <unk> of spirits wines and other goods said it will merge with a new corporation formed by the <unk> family which controls young 's + under terms of the agreement shareholders other than the <unk> will receive $ N a share at closing which is expected in december + the <unk> family said that holders of more than a majority of the stock of the company have approved the transaction by written consent + researchers at american telephone & telegraph co. 's bell laboratories reported they raised the electrical current-carrying capacity of new superconductor crystals by a factor of N moving the materials closer to commercial use + the scientists said they created small changes in the <unk> structures of the superconductors to raise the amount of current that single crystals could carry to N <unk> per square <unk> in a moderately strong magnetic field + the scientists said they made the advance with <unk> superconductors cooled to <unk> <unk> or minus N degrees <unk> + their report appears in today 's issue of the journal nature + the finding marks a significant step in research on bulk superconductors which are aimed at use in wires for motors <unk> <unk> and other applications + scientists had obtained even higher current-carrying capacity in thin films of the new superconductors but have had problems increasing the amount of current that bulk crystals could carry + superconductors conduct electricity without resistance when cooled + a family of ceramic superconductors discovered during the past three years promise new technologies such as cheaper electrical generation but only if their current-carrying capacity can be raised + the at&t advance shows how one aspect of the current-carrying problem can be overcome + but it wo n't lead to imminent use of new superconductors cautioned robert b. van dover one of the at&t researchers + he added that the current-carrying capacity of <unk> samples of superconductors remains too low for most practical uses because of so-called weak links between crystals + such <unk> materials will probably be needed for commercial applications + mr. van dover said the at&t team created the <unk> crystal changes by <unk> superconductor samples with neutrons a process that creates some <unk> in the samples and may not be <unk> for large-scale commercial use + still scientists <unk> a collective sigh of relief about the finding because it demonstrates how to overcome the <unk> <unk> problem that earlier this year was widely publicized as <unk> new superconductors ' potential + the problem involves the motion of small magnetic fields within superconductor crystals limiting their current-carrying capacity + mr. van dover said the crystal changes his team introduced apparently <unk> the magnetic fields in place preventing them from lowering current-carrying capacity + mr. van dover added that researchers are trying to determine precisely what crystal changes solved the problem + determining that may enable them to develop better ways to introduce the needed <unk> patterns + the at&t team also is trying to combine their latest superconductor process with <unk> growth a process discovered earlier at bell laboratories + the combined processes may significantly raise the current-carrying capacity of <unk> samples + william c. <unk> jr. an executive at san <unk> <unk> nationwide bank was named president and chief executive officer of <unk> holding corp. and its principal operating unit fidelity federal bank + the appointment takes effect nov. N + he succeeds james a. taylor who stepped down as chairman president and chief executive in march for health reasons + edward l. kane succeeded mr. taylor as chairman + separately <unk> posted a third-quarter net loss of $ N million or N cents a share <unk> net income of $ N million or $ N a share a year earlier + the latest results include some unusual write-downs which had an after-tax impact of $ N million + those included costs associated with the potential valley federal savings and loan association acquisition which was terminated on sept. N N + in addition operating results were hit by an increase in loan and real estate loss reserves + in american stock exchange composite trading <unk> shares closed yesterday at $ N down N cents + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + international business machines corp. + $ N million of N N N debentures due nov. N N priced at N to yield N N + the 30-year <unk> issue was priced at a spread of N basis points above the treasury 's N N N bellwether long bond + rated triple-a by both moody 's investors service inc. and standard & poor 's corp. the issue will be sold through underwriters led by salomon brothers inc + the size of the issue was increased from an originally planned $ N million + detroit + $ N million of general obligation <unk> state aid bonds due N and N tentatively priced by a chemical securities inc. group to yield from N N in N to N N in N + there is $ N million of N N term bonds due N priced at N N to yield N N + serial bonds are priced to yield from N N in N to N N in N + the bonds are insured and <unk> + santa ana community redevelopment agency calif. + $ N million of tax allocation bonds N series <unk> due N N and N tentatively priced by a donaldson lufkin & jenrette securities corp. group to yield from N N in N to N N in N + the N N N term bonds due N are priced at N N to yield N N and N N N term bonds due N are priced at N to yield N N + serial bonds are priced at par to yield from N N in N to N N in N + the bonds are rated single-a by s&p according to the lead underwriter + maryland community development administration department of housing and community development + $ N million of single-family program bonds N fourth and fifth series tentatively priced by a merrill lynch capital markets group to yield from N N in N for fourth series bonds to N N in N for fifth series bonds + there is $ N million of fourth series bonds the interest on which is not subject to the federal alternative minimum tax + they mature N N and N + fourth series serial bonds are priced at par to yield from N N in N to N N in N + the N N term bonds due N are priced to yield N N and N N term bonds due N are priced to yield N N + there is $ N million of fifth series bonds which are subject to the federal alternative minimum tax + they mature in N N and N + bonds due in N have a N N N coupon and are priced at par + the N N N bonds due N are priced to yield N N and N N N bonds due N are priced at N N to yield N N + the underwriters expect a double-a rating from moody 's + <unk> co japan + $ N million of eurobonds due nov. N N with equity-purchase warrants indicating a N N N coupon at par via daiwa europe ltd + each $ N bond carries one warrant exercisable from nov. N N through nov. N N to buy shares at an expected premium of N N N to the closing price when terms are fixed tuesday + fees N N + <unk> <unk> <unk> <unk> sweden + N billion yen of N N eurobonds due nov. N N priced at N N to yield N N less full fees via mitsui finance international + guaranteed by <unk> <unk> + fees N N + <unk> & co japan + N million swiss francs of privately placed convertible notes due march N N with a fixed N N coupon at par via yamaichi bank switzerland + put option march N N at a fixed N N to yield N N + each N swiss franc note is convertible from nov. N N to march N N at a N N premium over the closing share price monday when terms are scheduled to be fixed + fees N N + mitsubishi pencil co japan + N million swiss francs of privately placed convertible notes due dec. N N with a fixed N N coupon at par via union bank of switzerland + put option on dec. N N at a fixed N N to yield N N + each N swiss franc note is convertible from dec. N N to dec. N N at a N N premium over the closing share price tuesday when terms are scheduled to be fixed + fees N N + <unk> <unk> corp japan + N million swiss francs of N N N privately placed notes due nov. N N priced at N N via dai-ichi kangyo bank <unk> + guarantee by dai-ichi kangyo bank ltd + fees N N + although his team lost the world series san francisco giants owner bob <unk> hopes to have a new home for them + he is an <unk> fan of a proposition on next week 's ballot to help build a replacement for candlestick park + small wonder since he 's asking san francisco taxpayers to sink up to $ N million into the new stadium + as san francisco digs out from the pretty big one opponents say the last thing the city can afford is an expensive new stadium + a stadium craze is sweeping the country + it 's fueled by the increasing profitability of <unk> teams + something like one-third of the nation 's N largest cities are thinking about new stadiums ranging from cleveland to san antonio and st. <unk> + most <unk> claim the new sports <unk> will be <unk> for their city + <unk> university economist dean <unk> <unk> at that + he has looked at N baseball and football stadiums and found that only one private <unk> stadium brought more money into a city than it took out + stadiums tend to <unk> existing wealth within a community not create more of it + voters generally agree when they are given a chance to decide if they want to sink their own tax dollars into a new <unk> + san francisco voters rejected a new <unk> two years ago + last month phoenix voters turned <unk> down on a $ N million stadium bond and tax proposition + its backers <unk> every important interest on their team a popular mayor the chamber of commerce the major media and spent $ N on promotion + but voters decided that if the stadium was such a good idea someone would build it himself and rejected it N N to N N + in san francisco its backers concede the <unk> is at best running even in the polls + george christopher the former san francisco mayor who built candlestick park for the giants in the 1960s wo n't <unk> the new <unk> + he says he had candlestick built because the giants claimed they needed N parking <unk> + since the new park will have only N <unk> mr. christopher thinks backers are playing some fiscal games of their own with the voters + stadium <unk> claim that without public money they would never be built + miami <unk> owner joe <unk> <unk> and he can prove it + several years ago he gave up trying to persuade miami to improve its <unk> orange bowl and instead built his own $ N million <unk> with private funds + he did n't see why the taxpayers should help build something he would then use to turn a healthy profit + this stadium shows that anything government can do we can do better mr. <unk> says + but to moon <unk> the former new orleans mayor who helped build that city 's <unk> money-losing <unk> questions of who benefits or the bottom line are of little <unk> + the <unk> is an exercise in optimism a statement of faith he has said + it is the very building of it that is important not how much of it is used or its economics + an egyptian <unk> could n't have justified his <unk> any better + but <unk> has moved forward since then + today taxpayers get to vote most of the time on whether they want to finance the building schemes of our modern political <unk> or let private money <unk> these <unk> for public <unk> + reed international plc said that net income for the six months ended oct. N slipped N N to # N million $ N million or N pence a share from # N million $ N million or N pence a share + the british paper packaging and publishing concern said profit from continuing lines fell N N to # N million from # N million + while there were no one-time gains or losses in the latest period there was a one-time gain of # N million in the N period + and while there was no profit this year from discontinued operations last year they contributed # N million before tax + pretax profit fell N N to # N million from # N million and was below analysts ' expectations of # N million to # N million but shares rose N pence to N pence in early trading yesterday in london + reed is paying an interim dividend of N pence up N N from N pence a year earlier + sales fell N N to # N million + earnings were hurt by disposal of operations in its restructuring reed said + wall street 's big securities firms face the prospect of having their credit ratings lowered + the reason risks from the firms ' new merchant banking activities are rising as revenue from the industry 's traditional business <unk> + the downgrading of debt issued by cs first boston inc. parent of first boston corp. by moody 's investors service inc. coupled with a moody 's announcement that shearson lehman hutton holdings inc. is under review for a possible downgrade sent <unk> through the brokerage community this week + with the <unk> came the <unk> that some of wall street 's biggest players are struggling to maintain the <unk> credit standing required to finance their activities profitably + securities firms are among the biggest issuers of commercial paper or short-term corporate <unk> which they sell to finance their daily operations + the biggest firms still retain the highest ratings on their commercial paper + but moody 's warned that shearson 's commercial paper rating could be lowered soon a move that would reduce shearson 's profit margins on its borrowings and signal trouble ahead for other firms + shearson is <unk> by american express co + just as the 1980s bull market transformed the u.s. securities business so too will the more difficult environment of the 1990s says christopher t. <unk> a moody 's vice president + a sweeping restructuring of the industry is possible + standard & poor 's corp. says first boston shearson and drexel burnham lambert inc. in particular are likely to have difficulty <unk> up their credit standing in months ahead + what worries <unk> concerns the most is that wall street firms are taking long-term risks with their own capital via leveraged buy-out and junk bond financings + that 's a departure from their traditional practice of <unk> almost all financing risks to investors + <unk> conventional securities financings are structured to be sold quickly wall street 's new <unk> for leveraged buy-outs and junk bonds is resulting in long-term lending commitments that stretch out for months or years + the recent disarray in the junk bond market suggests that brokers may become longer-term creditors than they anticipated and may face long delays in getting their money back says jeffrey <unk> a vice president at s&p which raised a warning flag for the industry in april when it downgraded cs first boston + wall street is facing a <unk> situation says mr. <unk> of moody 's + merchant banking where firms commit their own money is getting riskier and there 's less of it to go around + in addition he says the buy-out business is under pressure because of the junk bond collapse meaning that returns are likely to decline as the volume of junk-bond financings <unk> + in a leveraged buy-out a small group of investors acquires a company in a transaction financed largely by borrowing with the expectation that the debt will be paid with funds generated by the acquired company 's operations or sales of its assets + in a recent report moody 's said it expects intense competition to occur through the rest of the century in the securities industry which combined with overcapacity will create poor prospects for profitability + it said that the temptation for <unk> to ease this profit pressure by taking greater risks is an additional rating factor + both moody 's and s&p cited first boston 's reliance in recent years on merchant banking which has been responsible for a significant portion of the closely held firm 's profit + the recent cash squeeze at campeau corp. first boston 's most lucrative client of the decade is proving costly to first boston because it arranged more than $ N billion of high-yield high-risk junk financings for campeau units + in addition a big loan that first boston made to ohio <unk> co was n't repaid on time when its $ N million junk financing for a buy-out of the <unk> company was withdrawn + these two exposures alone represent a very substantial portion of cs first boston 's equity moody 's said + total merchant banking exposures are in excess of the firm 's equity + cs first boston however benefits from the backing of its largest shareholder credit suisse switzerland 's third largest bank + shearson also has been an aggressive participant in the leveraged buy-out business + but its earnings became a major disappointment as its traditional retail or individual investor business showed no signs of rebounding from the slump that followed the october N stock market crash + in addition shearson 's listed $ N billion of capital is <unk> according to the rating concerns because it includes $ N billion of goodwill + shearson really only has $ N million of capital says mr. <unk> of s&p + a shearson spokesman said the firm is n't worried + a year ago moody 's also had shearson under review for possible downgrade he said + after two months of talks our rating was maintained + drexel meanwhile already competes at a disadvantage to its big wall street rivals because it has a slightly lower commercial paper rating + the collapse of junk bond prices and the cancellation of many junk bond financings apparently have taken their toll on closely held drexel the leading underwriter in that market + the firm also has been hit with big financial settlements with the government stemming from its guilty plea to six <unk> related to a big insider-trading scandal + drexel this year eliminated its retail or individual customer business cutting the firm 's <unk> almost in half to just over N + recently drexel circulated a private financial statement among several securities firms showing that its earnings performance has diminished this year from previous years + the firm 's capital moreover has n't grown at the same rate as in the past officials at these firms say + drexel remains confident of its future <unk> + we 're well positioned with $ N billion of capital a drexel spokesman said + and as a leading investment and merchant banking firm the fact that we are no longer subject to the uncertainties and <unk> of the retail business is a major plus in our view + moreover we 've probably been the most aggressive firm on the street in reducing costs which are down around N N over the last six months + lewis c. <unk> the father of the team that created the highly successful ford <unk> and mercury <unk> cars retired early after experiencing recent heart problems + most recently mr. <unk> N years old has been vice president of product and manufacturing engineering at ford motor co + but he is best known in the auto industry as the <unk> of a team <unk> approach that produced the two midsized cars that were instrumental in helping the no. N auto maker record profits in recent years and in enabling the company 's ford division to <unk> general motors corp. 's chevrolet division as the <unk> <unk> in the u.s. + under the so-called team <unk> approach mr. <unk> and other ford product planners sought the involvement of parts suppliers <unk> workers auto designers and financial staff members from the initial stages of the development cycle + the concept 's goal was to eliminate bureaucracy and make ford 's product development more responsive to consumer demands + it was later applied to other <unk> programs including those that produced the ford <unk> and mercury <unk> + ford chairman donald e. <unk> said yesterday that mr. <unk> has helped to change the world 's perception of <unk> cars + mr. <unk> worked at ford for N years holding a variety of car and <unk> positions + the limits to legal <unk> stretched another <unk> this week when the supreme court refused to hear an appeal from a case that says corporate defendants must pay damages even after proving that they could not possibly have caused the harm + we can understand and share the <unk> that makes judges sometimes wish to offer a kind of <unk> aid to those who 've been hurt + but this case is a stark lesson in how the failures of the traditional <unk> process have left the courts as the only forum this country has to debate risk technology and innovation + too often now a single court decision becomes the precedent for other less compelling cases + from the <unk> until N some two million women took the synthetic <unk> <unk> des to prevent <unk> and morning <unk> + the drug was approved by the food and drug administration and marketed by some N pharmaceutical companies often under generic labels + in the 1970s scientists reported cancer cases among the daughters of des users + the cases quickly went to court but the mothers of several thousand des plaintiffs could n't recall whose brand they used + beginning in N courts in several states including california and new york decided to suspend the <unk> rule that plaintiffs must prove that the defendants are the ones who are liable + courts made the assumption that all des pills were essentially the same and created a market-share test so that damages would be assessed against drug makers in the proportion of their share of the original sales + this has some logic + drug makers should n't be able to duck liability because people could n't identify precisely which identical drug was used + but courts quickly tumbled down a <unk> <unk> + just as all plaintiffs are not alike it turns out that des defendants marketed the drugs differently and may have offered different <unk> + the ultimate result came in <unk> v. lilly where the highest new york court expanded the market-share approach for the first time to say that drug makers that could prove <unk> <unk> 's mother did n't use their pill must still pay their share of any damages + but as duke university law professor william van <unk> notes by this <unk> a defendant could be held liable in new york for a bad apple even if he sold all his apples in california + despite the supreme court 's refusal to hear the case there are serious constitutional issues of due process and <unk> <unk> from the defendants + the big problem however is that there 's no guarantee that this <unk> will be limited to des or to drugs + the problem here goes well beyond <unk> legal doctrine + the california supreme court last year reversed direction to make it much harder to win des cases because the justices saw how all the pharmaceutical litigation has <unk> the introduction of new drugs + the court rejected strict liability for prescription drugs citing the huge hidden social costs + public policy favors the development and marketing of beneficial new drugs even though some risks perhaps serious ones might <unk> their introduction because drugs can save lives and reduce pain and suffering the <unk> court said + the california justices noted that the fear of litigation already forced the only remaining <unk> drug <unk> off the u.s. market + this raises the key issue what to do about people who suffer serious injuries from beneficial drugs + we now know that holding drug makers liable where there 's no evidence that they or anyone else knew of any risks only means the drugs wo n't be available to anyone + as liability expert peter <unk> tells us after the <unk> case if any drug maker <unk> an <unk> drug it 's time to sell that company 's stock short + we also know that the <unk> system is a <unk> way to compensate victims anyway some win the legal <unk> others get much less and <unk> lawyers take a big cut either way + des daughters and other victims of drugs would be better off if their cases were taken out of the courts + congress could create a compensation program to help such victims while protecting the national interest in encouraging new drugs + but a N law that supposedly replaced lawsuits over children 's <unk> with a compensation fund has predictably led to even more litigation + everyone by now understands that congress is utterly <unk> of writing legislation to help <unk> people without its becoming some billion-dollar <unk> + we have no doubt this is one reason judges in new york and justices on the supreme court are willing to trash the law in the des cases + they must figure that justice has to get done by somebody but know it wo n't be done by congress + <unk> partners limited partnership an investment firm completed the purchase of may department stores co. 's <unk> discount chain for $ N million plus the assumption of $ N million in debt + <unk> based in <unk> conn. operates N stores in the northeast it reported revenue of $ N billion last year + may stores st. louis runs such well-known department stores as lord & taylor + n.v <unk> said net income in the third quarter jumped N N as the company had substantially lower extraordinary charges to account for a restructuring program + the dutch chemical group said net income gained to N million guilders $ N million or N guilders a share from N million guilders or N guilders a share a year ago + the N N state-owned <unk> had eight million guilders of extraordinary charges in the latest quarter mainly to reflect one-time losses in connection with the disposal of some operations + the charges were offset in part by a gain from the sale of the company 's construction division + last year <unk> had N million guilders of extraordinary charges for the restructuring program and other transactions + the earnings growth also was fueled by the company 's ability to cut net financing spending by half to around N million guilders + also substantially lower dutch corporate tax rates helped the company keep its tax <unk> flat relative to earnings growth the company added + sales however were little changed at N billion guilders compared with N billion guilders + <unk> inc. said it received food and drug administration approval to sell the <unk> <unk> lens the first <unk> <unk> lens available for <unk> surgery + the <unk> 's <unk> enables it to be inserted in smaller <unk> than are now possible for <unk> surgery the eye care and skin care concern said + <unk> refer to a <unk> of the eye 's natural lens + a man from the bush administration came before the house agriculture committee yesterday to talk about the u.s. 's intention to send some $ N million in food aid to poland with more to come from the ec + the committee 's members are worried what all this free food might do to the economic prospects of poland 's own farmers + rep. gary ackerman noted that past food aid had <unk> farmers in el salvador and egypt + however well <unk> food transfers have the habit of growing larger and <unk> the market incentives for the <unk> country 's own farmers + the first world has for some time had the bad habit of <unk> other people 's economies with this kind of <unk> <unk> + it should be constantly stressed that poland 's farmers mostly need a real market for their products + <unk> industries inc. said it expects net income in the year ending june N N to fall below a recent analyst 's estimate of $ N a share + the <unk> ill. maker of fasteners also said it expects to post sales in the current fiscal year that are slightly above fiscal N sales of $ N million + the company said its industrial unit continues to face margin pressures and lower demand + in fiscal N <unk> earned $ N million or $ N a share + the company 's stock fell $ N to $ N in over-the-counter trading yesterday + <unk> truck corp. <unk> wis. estimated earnings for its fourth quarter ended sept. N fell N N to N N below the year-earlier $ N million or N cents a share + the truck maker said the significant drop in net income will result in lower earnings for the fiscal year + in fiscal N the company earned $ N million or $ N a share on revenue of $ N million + <unk> truck attributed the downturn in its earnings to higher start-up costs of its new <unk> division a softer <unk> market and higher administrative costs of compliance with government contractor regulations + the company said it is in the process of <unk> out john deere its current source of production for midsized motor home <unk> + in anticipation of the start-up of its new factory the company said a <unk> <unk> supply has been built to carry it through the transition period + tokyo stocks edged up wednesday in relatively active but <unk> trading + london shares finished moderately higher + at tokyo the nikkei index of N selected issues which gained N points tuesday added N points to N + in early trading in tokyo thursday the nikkei index fell N points to N + wednesday 's volume on the first section was estimated at N million shares in line with tuesday 's N million + declining issues slightly outnumbered advancing issues N to N + investors switched trading focus quickly as they did tuesday reflecting uncertainty about long-term commitments to any issue or sector traders said + speculation on the other hand sparked buying in certain <unk> issues though rumors underlying such shares eventually proved <unk> + the development traders said showed that there is more than ample liquidity available for investment despite the market 's recent <unk> trend + dealers led the market wednesday by actively trading for their own accounts observers said + institutions mostly remained on the sidelines because of uncertainty regarding interest rates and the dollar + the tokyo stock price index <unk> of all issues listed in the first section which gained N points tuesday was down N points or N N at N + the second section index which added N points tuesday was up N points or N N to close at N + volume in the second section was estimated at N million shares up from N million tuesday + <unk> <unk> managing director of nomura investment trust management said that if the u.s. federal funds rate declines to around N N institutions would acquire a <unk> idea regarding the direction of the market and thus more <unk> participate in active buying + tokyu group mitsubishi estate and <unk> which advanced tuesday declined on profit-taking + wednesday 's dominant issue was <unk> fire & marine insurance which continued to surge on rumors of speculative buying + it ended the day up N yen N cents to N yen $ N + due to <unk> high gold prices tied to uncertainty about the u.s. currency investor interest was directed toward oil and mining shares which traders called a defensive action frequently taken when the dollar is expected to fall or during times of inflation + <unk> oil also <unk> by rumors of speculative buying advanced N yen to N + <unk> shell gained N to N and mitsubishi oil rose N to N + <unk> metal mining fell five yen to N and nippon mining added N to N + among other winners wednesday was nippon <unk> which was up N at N + <unk> advanced N to N + london share prices were bolstered largely by continued gains on wall street and technical factors affecting demand for london 's blue-chip stocks + the financial times-stock exchange 100-share index closed N points higher at N + it rose largely throughout the session after posting an intraday low of N in the first N minutes of trading + the index ended the day near its session high of N which was posted within the last half-hour of trading + dealers said most investor interest was focused on defensive blue-chip stocks particularly those with limited u.k. exposure + also several key blue chips were pushed higher in thin volume because of a technical squeeze among market makers + sterling 's firm tone combined with a steady opening on wall street also <unk> some investors to come back to the market dealers said + there were concerns early in the day that wall street 's sharp gains on tuesday were <unk> and due for a reversal + the <unk> 30-share index settled N points higher at N + volume was N million shares up from N million on tuesday + dealers said institutions were still largely <unk> the sidelines on fears that the market 's recent technical rally might prove fragile + they cited wall street 's recent volatility and the lack of a clear indication over the market 's short-term direction as factors in the institutional caution + jaguar a u.k. luxury auto maker being pursued by ford motor and general motors gained N pence N cents a share to close at N pence $ N + it shed about N pence however after dealers said the market was disappointed that ford did n't move to tender a bid for control of the company + dealers said the u.k. government 's decision tuesday to waive its <unk> golden share in the auto maker raised prospects of a bidding war between the two u.s. auto giants + but the waiver also was seen as a signal that ford a major u.k. auto industry employer was able to gain government acceptance of its bid for control of jaguar + dealers said that interpretation sparked expectations of an imminent bid by ford + b.a.t industries which is being pursued by sir james goldsmith 's <unk> investments rose N to N on speculation that <unk> will <unk> its bid dealers said + like jaguar b.a.t also eased off its highs in afternoon dealings + reed international a u.k. publishing group gained N to N despite reporting a N N drop in interim pretax profit + analysts said the fall in pretax profit was due to the group 's recent restructuring and sale of peripheral units and that its remaining businesses are performing well + dealers said the market agreed + stocks boosted by market-makers shopping to cover book requirements in ft-se N shares included <unk> communications which climbed N to N + drug companies in the key index also <unk> gains as market-makers searched for stock in anticipation of demand due to the sector 's defensive <unk> + wellcome gained N to N on a modest N million shares + <unk> the u.k. 's largest pharmaceutical concern advanced N to # N + stock prices closed higher in stockholm amsterdam and frankfurt and lower in zurich + paris brussels and milan were closed for a holiday + south african gold stocks closed marginally lower + elsewhere share prices closed higher in singapore taipei and wellington were mixed in hong kong lower in seoul and little changed in sydney + manila markets were closed for a holiday + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + the following issues were recently filed with the securities and exchange commission + <unk> corp. offering of N common shares via goldman sachs & co. and <unk> <unk> & <unk> inc + <unk> water co. offering of N shares of common stock via legg mason wood walker inc. and howard weil <unk> <unk> inc + <unk> <unk> resources inc. initial offering of N common shares to be offered by the company via chicago corp + <unk> municipal fund inc. offering of five million common shares + occidental petroleum corp. shelf offering of $ N billion in senior debt securities + prime motor <unk> inc. offering of up to $ N million zero coupon convertible debentures via drexel burnham lambert inc. and montgomery securities + service <unk> co. proposed offering of N million shares of common stock via <unk> mitchell <unk> & garrison inc. and blunt ellis & <unk> inc + western gas resources inc. initial offering of N shares of common stock of which N shares will be sold by the company and N shares by a holder via prudential-bache capital funding smith barney harris upham & co. and <unk> <unk> inc + hold the <unk> + with <unk> <unk> <unk> and <unk> there are still beauty plans left to tackle but as the years go by it seems that before i <unk> i should <unk> + pat <unk> + criminal charges were filed against <unk> electronics inc. and two company officials alleging waste disposal violations in its <unk> calif. facility + the los angeles county district attorney 's office filed seven felony and five <unk> counts charging that late last year and early this year the irvine calif.-based <unk> manufacturer illegally <unk> of acid <unk> and heavy metals into the <unk> system and <unk> hazardous materials in <unk> <unk> or <unk> containers + named as defendants were <unk> matthews president and peter <unk> executive vice president and chief financial officer as well as a former plant manager + the company said local authorities held hearings on the allegations last spring and had returned the plant to routine inspection in august + the company does not feel that it or any of the individuals violated any criminal statute and the company expects full <unk> in court + <unk> are scheduled for nov. N + consumer confidence stayed strong in october despite the <unk> gyrations of the stock market + the sharp stock market decline in late october appears to have had little or no effect on consumers said <unk> <unk> executive director of the conference board 's consumer research center + survey returns received after the drop in the dow jones average were about the same as the views expressed prior to that event + the nonprofit <unk> group said its consumer confidence index was N in october barely changed from a revised N in september + the index was N in october N and in the past year has ranged from a low of N to a high of N + it uses a base of N in N + in october more people said that present business conditions were good than in september + an equal number in each month said that employment conditions were good + and N N of consumers contacted believed business conditions will improve in the coming six months compared with N N in september + also more people said conditions will worsen in the period + fewer said conditions wo n't change + in october N N N said business conditions would improve + in october N N N said more jobs will be created in the coming six months compared with N N in september and N N in october N + only N N in october compared with N N in september and N N in october N said income would increase + the sustained level of confidence can be attributed to the continued favorable circumstances which affect the consumer 's day-to-day economic life said mr. <unk> + unemployment continues at a relatively low level providing a sense of job security and a low inflation rate has kept the purchasing power of the weekly <unk> reasonably strong + the consumer confidence survey covering N u.s. households is conducted in the first two weeks of each month for the conference board by national family opinion inc. a toledo ohio market researcher + buying plans were mixed in october with fewer households indicating plans to buy cars and more saying they will buy homes and appliances in the coming six months + in october N N of respondents said they will buy a car easing from september when N N anticipated a purchase + in october N N N said they would buy a car + home purchase plans increased to N N from N N in the two recent months + in october N N N said they would buy a house + in N home purchase plans have ranged monthly from N N to N N of respondents + in october N N said they will buy appliances in the coming six months compared with N N in september and N N in october N + despite a <unk> of economic news the treasury market remained quiet but the corporate market was <unk> over international business machines corp. 's huge debt offering + there were so many economic reports but the market did n't care about any of them said <unk> <unk> a money market economist at drexel burnham lambert inc + so the focus turned to other fixed-income markets corporate and mortgages in particular she said + ibm the giant computer maker offered $ N million of <unk> 30-year debentures priced to yield N N or about N percentage point higher than the yield on 30-year treasury bonds + the size of ibm 's issue was increased from an originally planned $ N million as money managers and investors scrambled to buy the bonds + in the investment-grade corporate market it 's rare that you get an opportunity to buy a name that has such broad appeal and has such attractive call features said james <unk> a drexel industrial bond trader + money managers ranked ibm 's offering as the most significant investment-grade sale of the year because large issues of long-term debt by companies with triple-a credit are <unk> + syndicate officials at lead underwriter salomon brothers inc. said the debentures were snapped by up pension funds banks insurance companies and other institutional investors + in the treasury market investors paid <unk> attention to the day 's economic reports which for the most part provided a mixed view of the economy + whether you thought the economy was growing weak or holding steady yesterday 's economic indicators did n't change your opinion said charles <unk> a managing director at manufacturers hanover securities corp + the government reported that orders for manufactured goods were essentially unchanged in september while construction spending was slightly lower + both indicators were viewed as signs that the nation 's industrial sector is growing very slowly if at all + a survey by the federal reserve 's N district banks and the latest report by the national association of purchasing management <unk> that picture of the economy + in a monthly report prepared for use at the fed 's next federal open market committee meeting on nov. N the nation 's central bank found that price increases have <unk> and economic activity has grown at a sluggish pace in recent weeks + among other things the survey found that manufacturing activity <unk> considerably across districts and among industries + the philadelphia and cleveland districts for example reported declines in manufacturing activity while the boston dallas and san francisco banks noted that business expanded + the purchasing managers index of economic activity rose in october although it remains below N N + a reading below N N indicates that the manufacturing sector is slowing while a reading above N N suggests that the industry is expanding + mr. <unk> said the diverse showing in yesterday 's reports only <unk> the importance of the employment data + the employment report which at times has caused wide swings in bond prices is due out tomorrow + the average estimate of N economists polled by dow jones capital markets report was that <unk> <unk> expanded by N in october + the economists forecast a N N rise in the unemployment rate to N N + treasury securities + in a surprise announcement the treasury said it will reopen the outstanding benchmark 30-year bond rather than create a new one for next week 's quarterly refunding of the federal debt + the treasury will raise $ N billion in fresh cash by selling $ N billion of securities including $ N billion of new three-year notes and $ N billion of new 10-year notes + but rather than sell new 30-year bonds the treasury will issue $ N billion of <unk> nine-month bonds essentially increasing the size of the current benchmark 30-year bond that was sold at the previous refunding in august + credit market analysts said the decision to reopen the current benchmark the N N N bond due august N is unusual because the issue trades at a premium to its face amount + some dealers said the treasury 's intent is to help government bond dealers gauge investor demand for the securities given uncertainties about when the auction will occur + the treasury said the refunding is contingent upon congressional and presidential passage of an increase in the federal debt ceiling + until such action takes places the treasury has no ability to issue new debt of any kind + meanwhile treasury bonds ended modestly higher in quiet trading + the benchmark 30-year bond about N point or $ N for each $ N face amount + the benchmark was priced at N N to yield N N compared with N N to yield N N tuesday + the latest 10-year notes were quoted at N N to yield N N compared with N N to yield N N + the discount rate on three-month treasury bills was essentially unchanged at N N while the rate on six-month bills was slightly lower at N N compared with N N tuesday + corporate issues + ibm 's $ N million debenture offering dominated activity in the corporate debt market + meanwhile most investment-grade bonds ended unchanged to as much as N point higher + in its latest <unk> of performance statistics moody 's investors service found that investment-grade bonds posted a total return of N N in october while junk bonds showed a negative return of N N + moody 's said those returns compare with a N N total return for longer-term treasury notes and bonds + total return measures price changes and interest income + for the year to date moody 's said total returns were topped by the N N of longer-term treasury issues closely followed by N N for investment-grade bonds + junk bonds trailed the group again + even the N N return from the <unk> three-month treasury bill has easily <unk> the N N return from junk bonds wrote moody 's economist john <unk> in yesterday 's market report + little wonder that buyers for junk have been found wanting he said + moody 's said the average net asset value of N junk-bond mutual funds fell by N N in october + mortgage-backed issues + mortgage securities ended slightly higher but trailed gains in the treasury market + ginnie mae 's N N issue for november delivery finished at N N up N and its N N N issue at N N also up N + the ginnie mae N N securities were yielding N N to a 12-year average life + activity was light in derivative markets with no new issues priced + municipal issues + municipal bonds were mostly unchanged to up N point in light cautious trading prior to tomorrow 's unemployment report + a $ N million issue of health facility revenue bonds from the california health facilities financing authority was temporarily withdrawn after being tentatively priced by a first boston corp. group + an official for the lead underwriter declined to comment on the reason for the delay but market participants speculated that a number of factors including a lack of investor interest were responsible + the issue could be <unk> possibly in a restructured form as early as next week according to the lead underwriter + a $ N million offering of santa ana community redevelopment agency calif. tax allocation bonds got off to a slow start and may be <unk> at lower levels today according to an official with lead underwriter donaldson lufkin & jenrette securities corp + the santa ana bonds were tentatively priced to yield from N N in N to N N in + <unk> the market trend an issue of $ N million general obligation <unk> state aid bonds from detroit mich. apparently drew solid investor interest + they were tentatively priced to yield from N N in N to N N in + foreign bond + west german dealers said there was little interest in treasury bonds ahead of thursday 's new government bond issue + so far they said investors appear <unk> about the new issue which might force the government to raise the coupon to more than N N + it is generally expected to be the usual 10-year four billion mark issue + rumors to the contrary have been that it would be a six billion mark issue or that the last <unk> a N N issue due october N would be increased by two billion marks + elsewhere + in japan the benchmark no. N N N issue due N ended on brokers screens unchanged at N to yield N N + in britain the benchmark N N N bond due N fell N to N N to yield N N + the N N notes due N fell N to N N to yield N N + standard & poor 's corp. lowered to <unk> from <unk> the rating on about $ N million of debt + the rating concern said the textile and clothing company 's interest expense exceeds operating profit by a wide margin and it noted united 's estimated after-tax loss of $ N million for the year ended june N + travelers corp. 's third-quarter net income rose N N even though claims stemming from hurricane hugo reduced results $ N million + net advanced to $ N million or N cents a share from $ N million or N cents a share including net realized investment gains of $ N million up from $ N million a year ago + but revenue declined to $ N billion from $ N billion + travelers estimated that the california earthquake last month will result in a fourth-quarter <unk> charge of less than $ N million + the insurer 's earnings from commercial property\/casualty lines fell N N in the latest quarter while it lost $ N million in its personal property\/casualty business compared with earnings of $ N million a year ago + travelers 's employee benefits group which includes its group health insurance operations posted earnings of $ N million compared with a loss of $ N million last year + in the first nine months net was $ N million compared with a loss of $ N million in the N period + the year-ago results included a $ N million charge in the N second quarter for <unk> real estate and mortgage loans + the british department of trade and industry ordered an investigation of the competitive impact of michelin <unk> plc 's planned acquisition of national <unk> service ltd + the department said it referred the takeover to the monopolies and mergers commission because of the purchase 's possible effects on the u.k. market for distribution of replacement tires + <unk> plc a u.k. industrial conglomerate said in june it had sold its national <unk> service business to michelin investment ltd. a u.k. unit of the tire maker for # N million $ N million + michelin <unk> is a unit of france 's michelin s.a + michelin officials could n't immediately comment on the <unk> but they noted the purchase from <unk> has already been concluded + national <unk> which has N branches throughout the u.k. had N pretax profit of # N million + rep. john dingell an important sponsor of president bush 's clean-air bill plans to unveil a surprise proposal that would break with the white house on a centerpiece issue acid rain + the michigan democrat 's proposal which is expected today is described by government sources and lobbyists as significantly weaker than the bush administration 's plan to cut utility emissions that lead to acid rain + the administration 's plan could cost utilities mainly those that use coal up to $ N billion a year + the proposal comes as a surprise even to administration officials and temporarily throws into chaos the house 's work on clean-air legislation + as chairman of the house energy and commerce committee mr. dingell has almost <unk> control over clean-air legislation + people close to the utility industry said mr. dingell 's proposal appears to guarantee only an estimated <unk> cut in annual <unk> emissions that lead to acid rain though additional cuts could be ordered later + mr. bush 's legislative package promises to cut emissions by N million tons basically in half by the year N + although final details were n't available sources said the dingell plan would abandon the president 's proposal for a cap on utilities ' <unk> emissions + that proposal had been hailed by environmentalists but <unk> by utilities because they feared it would limit their growth + it also would junk an innovative <unk> system for trading emissions credits among <unk> + in addition it is believed to offer a cost-sharing mechanism that would help subsidize the <unk> costs for the <unk> <unk> utilities in the country <unk> their customers from <unk> <unk> in their electric bills + the administration sticking to its <unk> of avoiding tax increases has <unk> opposed cost-sharing + mr. dingell 's staff was expected to present its <unk> alternative to other committee members apparently in an attempt to <unk> midwestern lawmakers from <unk> states who insist on cost-sharing + it is n't clear however whether support for the proposal will be broad enough to pose a serious challenge to the white house 's <unk> plan + while the new proposal might appeal to the <unk> utilities it might not win the support of utilities many in the west that already have added expensive cleanup equipment or <unk> <unk> fuels + lawmakers representing some of the cleaner utilities have been quietly working with the white house to devise ways to <unk> with the administration bill to address their <unk> concerns + american city business <unk> inc. said its president michael k. russell will resign rather than <unk> to new headquarters in charlotte n.c + mr. russell who <unk> the kansas city <unk> local business publications concern here said he would have a five-year consulting agreement with the company which recently <unk> an ownership change + earlier this year shaw publishing inc. charlotte acquired N N of american city and has an agreement to acquire a further N N from <unk> <unk> co. next year + ray shaw chairman of american city said he would assume mr. russell 's responsibilities if a successor is n't found this month + a <unk> for measures to stop the market from plunging too far too fast + several moves were taken following the october N crash to coordinate and sometimes deliberately <unk> the stock and futures markets in times of heightened volatility + on the big board a side car is put into effect when the s&p futures rise or fall N points + the side car routes program trades into a special computer file that <unk> for imbalances of buy and sell orders + on the chicago mercantile exchange s&p N futures are not allowed to fall further than N points from the previous day 's close for half an hour + if when trading <unk> the s&p futures fall N points from the previous day 's close a one-hour trading halt takes effect + also the reforms allow the big board to halt trading for one hour if the dow jones industrial average falls N points and for two more hours if the dow <unk> an additional N points on the same day + <unk> system the designated order turnaround system was launched by the new york stock exchange in march N to offer automatic <unk> order processing + a faster version the <unk> was launched in N + used by program traders and others to zip orders into the exchange <unk> handles about N N of all orders entered at the exchange + futures contracts obligations to buy for those who have purchased a contract or deliver for those who sold one a quantity of the underlying commodity or financial instrument at the <unk> price by a certain date + most contracts are simply <unk> by an opposite trade before they come due + indexing many investors mainly institutions follow an investment strategy of buying and holding a mix of stocks to match the performance of a broad stock-market barometer such as the s&p N + many institutional index funds are active program traders <unk> their stocks for futures when profitable to do so + program trading a wide range of <unk> portfolio trading strategies involving the simultaneous purchase or sale of N or more stocks + <unk> generally any wall street analyst who employs <unk> research techniques + the newest breed also called rocket scientists because of their backgrounds in physics and <unk> devise the complex hedging and trading strategies that are <unk> known as program trading + stock-index arbitrage buying or selling baskets of stocks while at the same time executing offsetting trades in stock-index futures or options + traders profit by trying to capture fleeting price discrepancies between stocks and the index futures or options + if stocks are temporarily cheaper than futures for example an <unk> will buy stocks and sell futures + stock-index futures contracts to buy or sell the cash value of a stock index by a certain date + the cash value is determined by <unk> the index number by a specified amount + the most common program-trading vehicles are futures contracts on standard & poor 's 500-stock index traded on the chicago mercantile exchange the major market index a <unk> index that <unk> the dow jones industrial average traded on the chicago board of trade and the s&p N options traded on the chicago board options exchange and based on N stocks selected from the s&p N + stock-index options options give holders the right but not the obligation to buy a call or sell a put a specified amount of an underlying investment by a <unk> date at a <unk> price known as the strike price + for stock indexes the underlying investment may be a stock-index futures contract or the cash value of a stock index + for example there are options on the s&p N futures contract and on the s&p N index + uptick an expression <unk> that a transaction in a listed security occurred at a higher price than the previous transaction in that security + new york financier saul steinberg sought federal permission to buy more than N N of united airlines ' parent ual corp. saying he might seek control of the nation 's second-largest airline + although takeover experts said they <unk> mr. steinberg will make a bid by himself the application by his reliance group holdings inc. could signal his interest in helping revive a failed labor-management bid + such an application for federal antitrust clearance is necessary for any investor that might seek control + but some investors have used such filings to boost the value of their stock holdings which without buying more stock they then sold + takeover stock traders were <unk> by the reliance filing and cautioned that it does n't mean mr. steinberg will definitely seek control + maybe he just wants to make something happen said one takeover expert + one investment banker said mr. steinberg may be trying to position himself as a friendly investor who could help ual chairman stephen wolf revive a failed labor-management bid + mr. steinberg he suggested could replace british airways plc which has withdrawn from the buy-out group + reliance had already bought and sold ual stock at a big profit without making an antitrust filing before the collapse oct. N of the $ N billion $ 300-a-share labor-management buy-out + reliance acquired a N N ual stake early this year at an average cost of $ N a share and reduced its stake to N N after ual accepted the bid at prices higher than $ N a share + market sources said reliance has already sold its entire ual stake and thus would n't have any reason to file the application simply to boost the value of its stock + but the exact amount of reliance 's current holding has n't been formally disclosed + the filing adds a new twist to market speculation that coniston partners a new york money manager has bought more than N N of ual stock and may challenge the ual board 's decision last week to remain independent + speculation about coniston has caused the stock to rebound from a low of $ N + ual 's announcement came after the market closed yesterday + in composite new york stock exchange trading the shares closed at $ N up $ N + ual would n't elaborate on a statement that it had been notified of the filing by reliance + reliance confirmed the filing but would n't elaborate + some takeover experts were skeptical saying it was possible that mr. steinberg made the filing only to help boost the value of any remaining reliance stake in ual + mr. steinberg is thought to be on friendly terms with ual 's mr. wolf + the investor was instrumental in <unk> mr. wolf to run the air cargo unit of tiger international inc + mr. wolf 's success in that job helped him land the top job with ual in december N + but any potential acquirer must attempt to reach some kind of accord with the company 's employees primarily its pilots and the powerful machinists ' union which has opposed a takeover + <unk> williams corp. was merged into primerica corp. new york after a special meeting of williams shareholders cleared the transaction the companies said + primerica which had owned nearly N N of williams will pay about N million shares currently valued at almost $ N million for the rest of williams + the financial-services company will pay N share for each williams share + williams shares which were to be <unk> from the new york stock exchange after the close of composite trading yesterday closed at $ N off N cents + primerica closed at $ N down N cents + williams <unk> ga. is an insurance and financial-services holding company + its subsidiaries ' services are marketed by closely held <unk> williams & associates + primerica as expected also acquired certain assets of the agency and assumed certain of its liabilities + terms were n't disclosed + intelogic <unk> inc. san antonio texas said it bought N million shares or about N N of its common stock from an <unk> shareholder for $ N a share or $ N million + the move boosts intelogic chairman <unk> edelman 's stake to N N from N N and may help prevent martin ackerman from making a run at the <unk> concern + mr. ackerman already is seeking to oust mr. edelman as chairman of datapoint corp. an intelogic affiliate + the action followed by one day an intelogic announcement that it will retain an investment banker to explore alternatives to maximize shareholder value including the possible sale of the company + in new york stock exchange composite trading yesterday intelogic shares rose N cents to close at $ N + mr. edelman declined to specify what prompted the recent moves saying they are meant only to benefit shareholders when the company is on a roll + he added this has nothing to do with <unk> ackerman and it is not designed particularly to take the company private + but mr. ackerman said the buy-back and the <unk> price paid prove that mr. edelman is running scared + dow jones & co. said it extended its $ <unk> offer for telerate inc. common stock until N p.m. est nov. N + the offer valued at about $ N million for the N N of telerate that dow jones does n't already own had been set to expire nov. N + dow jones which owns about N million of telerate 's N million common shares outstanding said that about N shares have been tendered under its offer + telerate 's two independent directors have rejected the offer as inadequate + in composite trading on the new york stock exchange telerate shares closed at $ N up N cents + telerate provides an electronic financial information network + dow jones publishes the wall street journal barron 's magazine and community newspapers and operates financial news services and computer data bases + rockwell international corp. reported flat operating earnings for the fourth quarter ended sept. N + the aerospace automotive supply electronics and <unk> concern also indicated that the first half of fiscal N could be rough + in an interview donald <unk> chairman said first-half profit certainly would trail the past year 's primarily because of weakness in the <unk> and <unk> markets + still he added if the industrial sector remains relatively stable rockwell should be able to recover in the second half and about equal fiscal N 's operating profit of $ N million + for fiscal N 's fourth quarter rockwell 's net income totaled $ N million or N cents a share + that compares with operating earnings of $ N million or N cents a share the year earlier + the <unk> period includes a one-time favorable tax adjustment on the <unk> bomber program and another gain from sale of the industrial <unk> business which made net $ N million or N cents a share + sales rose N N to $ N billion from $ N billion + mr. <unk> said that he was generally pleased with the latest numbers and cited a particularly strong showing by the company 's electronics segment + overall pretax electronics earnings soared N N to $ N million from $ N million + all four areas had higher revenue for the three months ended sept. N + for the year electronics emerged as rockwell 's largest sector in terms of sales and earnings <unk> out aerospace for the first time + the graphics business which also was singled out by the chairman as a positive saw its operating earnings for the quarter jump N N to $ N million from $ N million + for the year bolstered by the introduction of the <unk> <unk> press graphics earnings almost doubled + aerospace earnings sagged N N for the quarter and N N for the year largely due to lower <unk> program profit the last of the <unk> rolled out in april N + that was partially offset by the <unk> of space shuttle flights and increased demand for <unk> <unk> engines + the company also took hits in the fourth quarters of N and N on a fixed-price <unk> development program probably the <unk> <unk> according to analysts + for fiscal N the company posted net of $ N million or $ N a share down from $ N million or $ N a share in fiscal N + excluding one-time additions to profit in each year earnings per share were $ N up N N from $ N in fiscal N + sales for the year rose N N to $ N billion from $ N billion in fiscal N + dell computer corp. said it cut prices on several of its personal computer lines by N N to N N + the austin <unk> company which specializes in the direct sale of personal computers and accessories said its price cuts include a $ N reduction on its system N computer with N <unk> of memory a <unk> hard disk and a color monitor + that package now sells for about $ N + a computer using the <unk> intel corp. N microprocessor with four <unk> of memory and a <unk> hard disk now sells for $ N down from $ N + personal computer prices for models using the intel N and N microprocessors which the dell models use generally have been coming down as chip prices have fallen + world sugar futures prices soared on rumors that brazil a major grower and exporter might not ship sugar this crop year and next + prices also were boosted by another rumor that mexico usually a large producer and exporter might have to buy a large quantity of sugar + although traders rushed to buy futures contracts many remained skeptical about the brazilian development which could n't be confirmed analysts said + the march and may contracts rose to fresh <unk> highs of N cents and N cents at their best levels of the day + the march delivery which has no limits settled at N cents up N cent a pound + the may contract which also is without restraints ended with a gain of N cent to N cents + the july delivery rose its daily permissible limit of N cent a pound to N cents while other contract months showed <unk> advances + according to reports carried by various news services the brazilian government told its sugar producers that they wo n't be allowed to export sugar during the current N season which began may N and the N season so that it can be used to produce alcohol for automobile fuel + one analyst arthur stevenson of prudential-bache securities new york estimated that N N or more of brazil 's newly made automobiles run on alcohol and ca n't use gasoline + this is a demand that must be met regardless of the price of oil said mr. stevenson + brazil is the third-largest producer and the <unk> exporter of sugar in the world + a shift to producing more alcohol and less sugar had been expected but the latest news if true indicates a more drastic shift than had been anticipated + during the current crop year brazil was expected to produce N million tons of sugar a drop from N million tons in N + its N exports were expected to total N tons in contrast to shipments of N million tons in + it is these N tons that are in question for this crop year explained <unk> <unk> analyst for shearson lehman hutton new york + producers were granted the right earlier this year to ship sugar and the export licenses were expected to have begun to be issued yesterday + as a result ms. <unk> said it is believed that little or no sugar from the N crop has been shipped yet even though the crop year is six months old + more than a half of all sugar produced in brazil goes for alcohol production according to ms. <unk> + also there has been a switch in the past decade to <unk> of orange trees in areas that were previously used for cane and this change is being felt now she said + most important ms. <unk> noted brazilian officials said that no decision has as yet been made on the suspension of exports + thomas <unk> sugar analyst for painewebber in <unk> n.j. said i am highly skeptical that brazil will curtail sugar exports particularly with the price of sugar at over N cents a pound + above all mr. <unk> noted the situation is extremely confused + professional sugar people here who have strong contacts with the brazilian sugar industry have been unable to confirm the reports or get enough information to clarify the situation he said + it 's the type of nervous atmosphere in which a report can be put out such as the one saying exports will be suspended and no one can confirm it + mr. <unk> observed that the situation in brazil is also very complicated + on the one hand brazil started an <unk> program about N years ago to fuel a huge portion of its national fleet of cars and is now committed to this program + it has to weigh on the other hand the relatively high price of sugar it can earn on the export market in making decisions as to whether to produce sugar or alcohol mr. <unk> said + mexico which is normally a sugar exporter has had production problems in the past two years analysts said + last year it had to buy sugar on the world market to meet export commitments they noted + this year it is expected to be a net importer and is said to be seeking to buy about N tons of sugar to meet internal needs analysts said + in other commodity markets yesterday + energy + petroleum futures were generally higher with heating oil leading the way + on the new york mercantile exchange heating oil for december delivery increased N cents to settle at N cents a <unk> + gasoline futures were mixed to unchanged + but the strength in heating oil helped push up crude oil + west texas intermediate crude for december delivery rose N cents a barrel to settle at $ N + the <unk> in heating oil was attributed to <unk> weather in parts of the u.s. and to the latest weekly report by the american petroleum institute which showed a decline in inventories of the fuel + grains and soybeans + prices closed mostly higher in relatively light trading as farmers continued to <unk> their crops from the marketplace in the hope of higher prices to come + trading was <unk> in part because of the <unk> of all <unk> ' day across much of europe + continued export demand also supported prices + as an indicator of the tight grain supply situation in the u.s. market analysts said that late tuesday the chinese government which often buys u.s. grains in quantity turned instead to britain to buy N metric tons of wheat + traders said prices also were supported by widespread rumors that the soviet union is on the verge of receiving most favored nation status from the u.s. + that <unk> would among other things provide more generous credit terms under which the soviets could purchase grain + the soviets are widely believed to need additional supplies despite running up record <unk> purchases of N million <unk> of corn in october + copper + futures prices rose extending tuesday 's gains + the december contract advanced N cents a pound to $ N + buying for the most part carried over from the previous session and traders apparently ignored reports that a <unk> mine strike may have ended almost before it began an analyst said + according to news service reports most workers at the <unk> mines owned by exxon corp. agreed to a new two-year wage contract that includes a N N increase and other benefits + however some workers have n't yet accepted the new contract and are continuing negotiations the analyst said + separately reuter reported that the <unk> guinea government urged its parliament to extend a state of emergency in <unk> bougainville island for two months + the bougainville copper mine has been <unk> since may N because of attacks by native <unk> who want bougainville to <unk> from <unk> guinea + the parent of younkers after failing to find a buyer for the chain of midwestern department stores said it will sell a stake in the chain to management and take other steps to reduce its investment in retailing + equitable of iowa cos. des <unk> had been seeking a buyer for the <unk> younkers chain since june when it announced its intention to free up capital to expand its insurance business + but equitable said it was unable to find a buyer willing to pay what it considers fair value for younkers because of recent turmoil in the bond and stock markets and in retailing + younkers <unk> up sales in N of $ N million + it operates stores mostly in iowa and nebraska + younkers management is likely to buy a N N to N N interest in the chain in january said fred s. <unk> equitable 's president and chief executive officer + he said equitable hopes to eventually reduce its stake in younkers to less than N N + tony lama co. said that <unk> investment ii limited partnership has proposed changing the offer for the company to $ N in cash and stock from an <unk> transaction + under terms of the new proposal <unk> managed by <unk> capital corp. houston would pay $ N cash and one new preferred share with a liquidation preference of $ N a share for each of tony lama 's N million shares outstanding + previously it offered $ N a share in cash or $ N million + the el paso texas maker of western <unk> and leather accessories said the preferred stock would <unk> dividends at a N N rate but would n't be paid for the first two years + the stock would be redeemed in five years subject to terms of the surviving company 's debt + neither <unk> nor tony lama gave a reason for the changed offer and tony lama could n't be reached for comment + however tony lama said it would promptly submit the offer to a special committee of the company 's board + reuters holdings plc said michael reupke resigned as general manager to pursue unspecified interests a move the news organization termed an amicable separation + mr. reupke N years old and a <unk> reuters veteran had been the <unk> company 's general manager for only six months + his appointment to that post which has senior administrative staff and policy responsibilities followed a <unk> tenure as reuters 's editor in chief + no successor was named and mr. reupke 's duties will be split among three other senior reuters executives the company said + in a telephone interview mr. reupke said his departure was for personal reasons which he declined to specify + there is no business reason for my departure nor any disagreement over policy he added + he also rejected reports that his departure stemmed from disappointment the general manager 's post had n't also led to a board <unk> at the london-based news organization + mr. reupke was one of three executives on reuters 's <unk> executive committee who did n't also serve on the company 's board of directors + if i were choosing the people of tomorrow i would have chosen the people who are now on the board he said + a reuters spokesman said the departure reflects no change in strategy or profits + mark <unk> an analyst at <unk> phillips & drew in london said i suspect the departure will be fairly irrelevant for the company + i would be very surprised if his departure signals any change in strategy or change in profit expectations + on london 's stock exchange reuters shares rose five pence to N pence $ N + in the u.s. over-the-counter market american depositary shares for reuters each representing three shares in the london market closed unchanged at $ N + the senior of the three executives who will assume mr. reupke 's duties is nigel <unk> N finance director and a reuters board director + peter <unk> N deputy general manager becomes director of corporate affairs + and patrick <unk> N international technical manager becomes director of group quality programs + dd acquisition corp. a partnership of unicorp canada corp. 's <unk> capital group and cara operations ltd. extended to nov. N its $ <unk> offer for all <unk> donuts inc. shares outstanding + the offer which was due to expire yesterday is conditional on N N of <unk> common shares on a fully diluted basis being tendered and on the withdrawal of the company 's poison pill rights plan + dd acquisition has launched a suit in a delaware court seeking the withdrawal of dunkin 's poison pill rights and employee stock ownership plans which it claims were put in place to deter bidders + dd acquisition said N million shares or about N N of the shares outstanding have been tendered under its offer + the partners said they already hold N N of all shares outstanding + <unk> has set nov. N as the deadline for the <unk> of any competing bids + dd acquisition said the extension is to allow this process to be completed + <unk> is based in <unk> mass + cara a food services chain operator and unicorp a holding company are based in toronto + <unk> corp. reported a third-quarter net loss of $ N million or N cents a share compared with year-earlier profit of $ N million or one cent a share + a spokesman for the stamford <unk> company said operations had a loss of $ N million for the quarter in addition the loss was magnified by nonrecurring charges totaling $ N million and $ N million in <unk> adjustments that he described as unusual + the charges were partly offset by a $ N million gain on the sale of investments of two joint ventures he said + revenue declined N N to $ N million from $ N million a year earlier + <unk> cited a general softening in the demand for office products in the market segments in which <unk> competes + <unk> corp. said it expects to report a third-quarter net loss of $ N million to $ N million because of special reserves and continued low natural-gas prices + the oklahoma city energy and defense concern said it will record a $ N million reserve for its defense group including a $ N million charge related to problems under a fixed-price development contract and $ N million in overhead costs that wo n't be <unk> + in addition <unk> said it will write off about $ N million in costs related to international exploration leases where exploration efforts have been unsuccessful + the company also cited interest costs and amortization of goodwill as factors in the loss + a year earlier net income was $ N million or six cents a share on revenue of $ N million + a lack of enthusiasm with the latest economic data hampered the stock market 's bid to extend tuesday 's sharp gains as prices closed slightly higher in sluggish trading + while renewed optimism about the outlook for takeover activity boosted several so-called deal stocks traders said profit-taking weighed on the market with <unk> bearing the brunt of the selling + the dow jones industrial average which had jumped N points on tuesday drifted on either side of its previous close and finished with a gain of just N at N + standard & poor 's 500-stock index added N to N the rise was equivalent to a gain of about six points in the industrial average + the dow jones equity market index gained N to N and the new york stock exchange composite index went up N to N + advancing stocks led decliners on the new york stock exchange by N to N + big board volume amounted to N shares down from N million tuesday + the october survey of corporate purchasing managers as expected provided evidence that economic growth remains subdued + an index of economic activity drawn from the survey stood last month at N N a reading above N N would have indicated that the manufacturing sector was improving + but with the index proving somewhat better than expected and the widely anticipated report on october employment scheduled to arrive tomorrow stock prices firmed only modestly in response to the report and then faltered + this market 's still going through its <unk> said philip <unk> head of equity trading at prudential-bache securities + the psychology is still we want stocks up but if they do n't carry we 're going to sell them + uncertainty about the prospects for further action to curtail stock-index arbitrage a form of program trading blamed for recent volatility in the market also contributed to its lack of direction mr. <unk> said + <unk> trading during the session was confined largely to a round of buy programs near the close which helped offset the impact of profit-taking among blue chips + trading is expected to remain subdued as the market <unk> tomorrow 's release of the jobs data with the hope that it will point toward a decline in interest rates + i sense that some people are reluctant to stick their <unk> out in any aggressive way until after the figures come out said richard <unk> president of <unk> associates fair haven + campbell soup jumped N N to N N as the resignation of r. gordon mcgovern as president and chief executive officer sparked a revival of rumors that the company could become a takeover target + prudential-bache securities boosted the stock 's short-term investment rating in response to the departure analyst john <unk> said he believes the company will turn to new management that 's more financially <unk> + other rumored takeover and restructuring candidates to attract buyers included woolworth which went up N N to N N avon products up N N to N N paramount communications up N to N N and <unk> up N N to N N + upjohn a rumored target within the drug industry advanced N to N N + the company said it plans a fourth-quarter charge which it did n't specify for an <unk> program + amr climbed N N to N N amid rumors that new york developer donald trump was seeking financing to mount a new lower offer for the parent company of american airlines + mr. trump withdrew a $ <unk> bid last month + ual rose N N to N + drexel burnham lambert analyst michael <unk> said he sees a N N chance that the parent of united airlines the target of a failed $ 300-a-share offer from a labor-management group will be acquired or restructured within six months + georgia gulf added N N to N N after nl industries controlled by dallas investor harold simmons offered to acquire the stock it does n't already own for $ N a share + nl which closed unchanged at N N has a stake of just under N N + great northern nekoosa which surged N N tuesday after georgia-pacific launched a $ N billion offer for the company dropped N N to N N in big board composite trading of N million shares + georgia-pacific which went down N N tuesday lost another N to N N + other paper and forest-products stocks closed mixed + mead rose N to N N federal paper board added N to N N and scott paper gained N to N N while international paper fell N to N N champion international lost N to N N and <unk> dropped N to N N + texaco rose N to N N as N million shares changed hands + most of the volume came from trades designed to capture the stock 's next dividend texaco has a yield of N N and goes ex-dividend today + santa fe pacific dropped N N to N N + the company 's proposal to sell a N N stake in its real-estate unit for around $ N million has caused analysts to consider whether to cut their estimates of santa fe 's asset value + <unk> tumbled N to N + the company forecast that fourth-quarter income from continuing operations would be significantly lower than a year earlier + <unk> went up N to N N + the food and drug administration allowed the company to begin marketing a new lens for use in <unk> patients + the american stock exchange market value index gained N to N + volume totaled N shares + old <unk> warehouse rose N to N N + its net income for the september quarter rose about N N from a year ago + freeport-mcmoran inc. said it will convert its freeport-mcmoran energy partners ltd. partnership into a publicly traded company through the exchange of units of the partnership for common shares + the company said the restructuring is n't expected to have any impact adverse or otherwise on its financial results + freeport-mcmoran a new <unk> diversified energy conglomerate said the partnership will exchange its assets for common shares of a <unk> entity + freeport-mcmoran energy partners will be liquidated and shares of the new company distributed to the partnership 's <unk> + <unk> will receive two additional N <unk> distribution payments before the trust is liquidated in early N the company said + it is expected that common shares equal to the number of units outstanding about N million on sept. N will be issued during the first quarter of N + freeport-mcmoran the parent company holds roughly N N of the units outstanding + nissan motor co. japan 's second-largest car maker announced wednesday that the parent concern 's pretax earnings in the first half ended last sept. N rose N N to N billion yen $ N million from N billion yen a year earlier + nissan cited strong domestic sales against the backdrop of <unk> economic expansion + profit surged N N to N billion yen or N yen a share from N billion yen or N yen a share + sales totaled N trillion yen climbing N N from N trillion yen in the year-earlier period + nissan scheduled a <unk> interim dividend payment unchanged + <unk> <unk> executive vice president and chief financial officer of nissan said the company has experienced a remarkable turnaround in terms of profitability since the fiscal year ending march N when the sharp and rapid appreciation of the yen caused many difficulties + it can be said that the trend of financial improvement has been firmly set he added + heritage media corp. new york said it offered to buy the shares of pop radio corp. it does n't already own in a stock swap + heritage which owns N N of pop 's N million shares outstanding said it will exchange one share of a new preferred stock for each pop common share it does n't already own + depending upon how many warrants and options are exercised prior to completion of the transaction heritage would issue between N million and N million preferred shares a heritage spokesman estimated + in national over-the-counter trading yesterday pop plunged $ N to $ N + the preferred stock which would have a dividend rate of $ N a year would be convertible into heritage common at a rate of four common shares for each preferred + new york-based pop radio provides through a national <unk> network a <unk> music information and advertising service which <unk> live radio + heritage owns and operates television and radio stations and <unk> advertising and promotion programs + <unk> inc. hurt by a plant accident and other unexpected costs said it expects to report that fiscal fourth-quarter profit from continuing operations will be significantly below last year 's $ N million + the <unk> <unk> company also said that full-year profit from continuing operations will be far below last year 's $ N million + last year 's figures include a one-time loss of $ N million for restructuring and unusual items + but the automotive parts and aerospace concern expects that net for the year ending nov. N will exceed last fiscal year 's net of $ N million or $ N a share primarily because of $ N million in gains from sales of discontinued operations + harry <unk> an analyst at mcdonald & co. in cleveland said <unk> 's unanticipated losses come largely from an accident at a government-owned assembly plant in kansas run by a private <unk> that makes <unk> <unk> for <unk> 's <unk> <unk> business + <unk> corp. san francisco said third-quarter profit was essentially flat despite a large one-time gain a year earlier + the insurance and financial services concern said profit for the quarter rose N N to $ N million or $ N a share compared with $ N million or $ N a share the year earlier + the results reflected a N N gain in income from its finance businesses and a N N slide in income from insurance operations + <unk> said third-quarter investment gains were $ N million compared with $ N million the year earlier + it said insurance profit reflected a $ N million loss from hurricane hugo + it also estimated that losses from the oct. N earthquake in california would be no more than $ N million and would be included in fourth-quarter results + <unk> international inc. <unk> heights n.j. facing a <unk> squeeze said it is seeking other financing sources and <unk> from debenture holders + the company said that because of softening sales it is n't in compliance with requirements that it maintain $ N million in working capital + <unk> distributes electronic devices and produces power supplies and plastic literature displays + <unk> said it had a loss of $ N or N cents a share in the third quarter compared with a year-earlier loss of $ N or two cents a share + sales rose to $ N million from $ N million + for the nine months the company reported a net loss of $ N or N cents a share compared with year-earlier net income of $ N or N cents a share + sales rose to $ N million from $ N million + meridian national corp. said it sold N shares of its common stock to the mcalpine family interests for $ N million or $ N a share + the sale represents N N of meridian 's shares outstanding + the mcalpine family which operates a number of multinational companies including a london-based engineering and construction company also lent to meridian national $ N + that amount is convertible into shares of meridian common stock at $ N a share during its one-year term + the loan may be extended by the mcalpine group for an additional year with an increase in the conversion price to $ N a share + the sale of shares to the mcalpine family along with the recent sale of N shares of meridian stock to <unk> <unk> holding plc of <unk> england and a recent public offering have increased meridian 's net worth to $ N million said william <unk> chief executive officer of toledo <unk> meridian + ratners group plc a fast-growing <unk> london-based <unk> raised its price for <unk> specialty <unk> weisfield 's inc. to $ N a share or $ N million from $ N a share or $ N million after another concern said it would be prepared to <unk> ratners 's initial offer + the other concern was n't identified + ratners 's chairman gerald <unk> said the deal remains of substantial benefit to ratners + in london at <unk> yesterday ratners 's shares were up N pence N cents at N pence $ N + the sweetened offer has acceptances from more than N N of weisfield 's shareholders and it is scheduled for completion by dec. N + the acquisition of <unk> weisfield 's raises ratners 's u.s. presence to N stores + about N N of ratners 's profit already is derived from the u.s. + carnival cruise lines inc. said potential problems with the construction of two big cruise ships from finland have been <unk> + last week miami-based carnival disclosed that waertsilae marine industries the finnish shipyard that is building carnival 's new cruise ships planned to file for bankruptcy + yesterday carnival said a new company has been formed in finland that will carry on waertsilae 's shipbuilding operations + carnival said it will be an N N shareholder in the new company + carnival said the fantasy a <unk> ship that was slated to be delivered this month will be delivered in january + a second ship is now expected to be delivered late next year or early in N + carnival had expected that ship to be delivered next fall + a planned third ship still may be built in the finnish shipyard or may be built elsewhere carnival said + valley federal savings & loan association took an $ N million charge as it reported a third-quarter loss of $ N million or $ N a share + the van <unk> calif. thrift had net income of $ N or three cents a share a year ago + the bulk of the pretax charge is a $ N million write-off of capitalized <unk> at the mobile home financing subsidiary which the company said had been a big drain on earnings + the company said the one-time provision would substantially eliminate all future losses at the unit + valley federal also added $ N million to <unk> loan reserves and eliminated $ N million of good will + the thrift said that after these charges and assuming no dramatic <unk> in interest rates the association expects to achieve near record earnings in N + valley federal is currently being examined by regulators + new loans continue to slow they were $ N million in the quarter compared with $ N million a year ago + the thrift has assets of $ N billion + first of america bank corp. said it completed its acquisition of midwest financial group inc. for about $ N million + first of america which now has N banks and $ N billion in assets announced an agreement to acquire the <unk> ill. bank holding company in january + midwest financial has $ N billion in assets and eight banks + the midwest financial subsidiary banks will continue to operate under their current names until early N when each will adopt the first of america name + <unk> <unk> first of america said it will eliminate the N management positions of the former midwest financial parent company + first of america said some of the managers will take other jobs with first of america + but it said that severance payments to those executives not staying with the company will reduce first of america 's operating results for N by $ N million to $ N million or N cents to N cents a share + <unk> industries inc. a once <unk> toy maker whose stock peaked at $ N a share in the early 1980s filed a chapter N reorganization plan that provides just N cents a share for common stockholders + under the plan unsecured creditors who are owed about $ N million would receive about $ N million or N cents for each dollar they are owed + in addition they will receive stock in the <unk> company which will be named <unk> industries inc + after these payments about $ N will be available for the N million common shares outstanding + the avon conn. company 's stock hit a high in N after it unveiled its <unk> home computer but the product was plagued with <unk> and the company 's fortunes plunged + but <unk> bounced back with the introduction of the <unk> patch <unk> whose sales hit $ N million in N + but as the craze died <unk> failed to come up with another winner and filed for bankruptcy-law protection in july N + the plan was filed jointly with unsecured creditors in federal bankruptcy court in new york and must be approved by the court + ortega ended a truce with the contras and said elections were threatened + the nicaraguan president citing attacks by the <unk> rebels suspended a <unk> cease-fire and accused bush of promoting death + while he <unk> support for the country 's feb. N elections ortega indicated that renewed u.s. military aid to the contras could thwart the balloting + he said u.s. assistance should be used to <unk> the rebels + a white house spokesman <unk> the truce suspension as <unk> but brushed off talk of renewing military funding for the <unk> + the contra military command in a statement from honduras said sandinista troops had launched a major offensive against the rebel forces + east german leader krenz called the protests in his country a good sign saying that many of those <unk> for democratic freedoms were showing support for the <unk> for socialism + the communist party chief in moscow for talks with soviet officials also said east germany would follow gorbachev 's restructuring plans + thousands of east germans fled to czechoslovakia after the east berlin government lifted travel restrictions + the ban on cross-border movement was imposed last month after a massive exodus of <unk> to west germany + also a communist official for the first time said the future of the berlin wall could be open to discussion + health officials plan to extend a <unk> on federal funding of research involving fetal-tissue transplants + the assistant hhs secretary said the ban should be continued indefinitely + while researchers believe such transplants could help treat diseases like <unk> 's anti-abortionists oppose the research + rep. dingell of michigan plans to unveil today a proposal that would break with bush 's clean-air bill on the issue of emissions that lead to acid rain + the democrat 's proposal is described by government sources and lobbyists as significantly weaker than the president 's plan to cut utility emissions + house-senate conferees approved major portions of a package for more than $ N million in economic aid for poland + the plan relies heavily on $ N million in credit and loan guarantees in fiscal N in hopes of <unk> future trade and investment + south africa accused armed <unk> <unk> guerrillas of crossing from bases in neighboring <unk> violating <unk> peace plans for the territory 's independence from pretoria + south african troops were placed on alert + guerrilla leaders said pretoria was attempting to sabotage next week 's elections in namibia + <unk> in lebanon <unk> a saudi <unk> embassy employee and the <unk> <unk> <unk> took responsibility for the <unk> to <unk> the <unk> of N <unk> by <unk> 's government in september + also in <unk> a <unk> group vowed to kill americans if the u.s. <unk> a policy to seize suspects abroad + nixon concluded five days of private talks with chinese leaders in beijing but apparently failed to ease <unk> in <unk> ties caused by china 's crackdown against pro-democracy protesters in june + beijing 's <unk> complained to the former president about u.s. <unk> in china 's domestic affairs + mexico 's president salinas said the country 's recession had ended and the economy was growing again + in his first state of the nation address salinas pledged to continue his program of modernization and warned opposition politicians that <unk> progress could cost them popular support + pakistan 's <unk> defeated the first <unk> motion in the nation 's <unk> history surviving the vote that could have brought down her <unk> government + the prime minister 's opponents claimed the balloting N votes short of a majority in <unk> 's <unk> assembly was <unk> + the white house said the <unk> meetings next month between bush and soviet leader gorbachev will take place in the waters off <unk> + the location was disclosed as the u.s. began planning the issues to be discussed at the dec. N <unk> + bush unveiled a package of trade initiatives to help establish economic alternatives to drug trafficking in the <unk> nations of south america + the president 's plan includes a commitment to help negotiate a new international coffee agreement + pan am has <unk> several government agencies including the cia and fbi to determine whether they were warned that a bomb had been planted aboard a jet that exploded over scotland last december killing N people + the airline is attempting to show that israel and west germany warned the u.s. about the impending attack + died james a. <unk> N retired chairman and president of mutual life insurance co. of new york tuesday in new york city of an <unk> <unk> condition + sony corp. completed its tender offer for columbia pictures entertainment inc. with columbia shareholders <unk> N N of all common shares outstanding by the tuesday deadline + sony columbia acquisition corp. formed for the columbia deal will formally take ownership of the movie studio later this month a spokesman said + sony is paying $ N a share or $ N billion cash and is assuming $ N billion of long-term debt + still <unk> is sony 's effort to hire producers jon peters and peter guber to run the studio + sony 's planned acquisition of <unk> entertainment co. for $ N million is scheduled to close monday + <unk> has been locked in litigation with warner communications inc. in an attempt to get out of an exclusive production contract with warner + both sides are in talks to settle the dispute + xerox corp. has told employees in its <unk> & <unk> personal insurance operations that it is laying off about N people or N N of the staff + a spokeswoman for <unk> & <unk> said employees were told early this week that numerous staff functions for the personal insurance lines were going to be <unk> as a cost-cutting move + she said the move would result in a after-tax charge of less than $ N million to be spread over the next three quarters + by comparison for the first nine months xerox earned $ N million or $ N a share on revenue of $ N billion + earnings at xerox 's financial-services operations actually rose slightly but that was largely because capital gains at <unk> & <unk> offset hurricane hugo payments and the reserves set up to cover future payments + property\/casualty insurance has been a tough business in recent quarters as pricing has been <unk> and natural disasters such as hurricane hugo and the california earthquake have resulted in huge payments + <unk> ltd. a large integrated maker of construction machinery posted a N N unconsolidated gain in first-half pretax profit + for the period ended <unk> it earned N billion yen us$ N million up from N billion yen the year before + sales rose N N to N billion yen from N billion yen + net income surged N N to N billion yen from N billion yen + per-share net rose to N yen from N yen + brisk domestic demand due to increasing capital investment pushed up sales sharply in construction and industrial machinery divisions + domestic sales of construction machinery such as power <unk> and <unk> rose to N billion yen from N billion yen + demand from europe and southeast asia also grew but due to increasing production at local plants overseas sales edged down N N + <unk> predicted that for the fiscal year ending march N sales will climb to N billion yen from N billion yen pretax profit was forecast at N billion yen up from N billion yen in fiscal N + net is expected to rise to N billion yen from N billion yen a year earlier + economic growth appears to be <unk> off latest reports suggest + factory orders and construction outlays were largely flat in september while purchasing agents said manufacturing shrank further in october + still many economists are n't predicting a recession anytime soon + the fed is coming under pressure to cut short-term interest rates due to the apparent slowing of the economy + but it is n't clear yet whether the central bank will make such a move + campbell soup forced out its president and chief executive r. gordon mcgovern the strongest indication yet that the dorrance family plans to take charge of <unk> the troubled food company + campbell 's stock rose $ N to $ N in reaction + the chicago merc plans an additional circuit breaker to stem sharp drops in the market + also big board chairman phelan said he would support sec halts of program trading during market crises but not any revival of a collar on trading + georgia gulf received a new takeover bid from investor harold simmons and nl industries of $ N a share or about $ N billion + the offer which follows a $ <unk> bid that was rejected in september steps up pressure on the chemicals concern + the minimum-wage bill worked out by congress and bush won easy approval in the house + the compromise plan which boosts the minimum wage for the first time since N is expected to clear the senate soon + steinberg sought clearance to buy more than N N of united air 's parent saying he may seek control + takeover experts said they <unk> the financier would make a bid by himself + an airline buy-out bill was approved by the house + the measure would make it easier for the transportation department to block leveraged buy-outs in the industry + usx was cited by osha for several health and safety violations at two pennsylvania plants and may face a record fine of $ N million + random house chairman robert bernstein said he is resigning from the publishing house he has run for N years + a successor was n't named + cray research indicated that the survival of a spinoff company which is developing a new supercomputer depends heavily on its chairman and chief designer seymour cray + light trucks and vans will face the same safety requirements as automobiles under new proposals by the transportation department + the treasury plans to sell $ N billion in notes and bonds next week but will delay the auction unless congress quickly raises the debt ceiling + u.s. farmers ' net income rose to a record $ N billion last year despite one of the worst <unk> ever + two antitrust agencies may face further cutbacks because of a complicated new funding device some democrats in congress are warning + markets + stocks volume N shares + dow jones industrials N up N transportation N up N utilities N up N + bonds shearson lehman hutton treasury index N up + commodities dow jones futures index N up N spot index N up N + dollar N yen up N N marks up N + junk-bond <unk> an ongoing securities and exchange commission investigation a drexel burnham lambert connection a <unk> buy-out rumor + all this has cast a pall over columbia savings & loan association and its <unk> <unk> chairman thomas spiegel who built the $ N billion beverly hills calif. thrift with high-yield junk bonds + bears have targeted columbia 's stock because of the thrift 's exposure to the shaky junk market + and some investors fault mr. spiegel 's life style he earns millions of dollars a year and flies around in columbia 's jet planes + columbia stock recently hit N N after reaching N N earlier this year on rumors that mr. spiegel would take the thrift private + moreover junk professionals think columbia 's huge third-quarter <unk> of its junk portfolio to $ N billion was n't enough meaning another <unk> could be coming + but in recent days columbia has edged up closing at N N up N yesterday on revived speculation that the thrift might restructure + mr. spiegel 's fans say columbia 's southern california branches are highly <unk> and the thrift has $ N million of shareholders equity underlying its assets + that 's almost $ N of equity for each columbia share including convertible preferred shares though more junk <unk> would reduce the cushion + columbia has only about N million common shares in public hands + the spiegel family has N N of the common and N N of the votes + other big common holders are carl <unk> 's american financial investor <unk> jacobs and pacific financial research though the latter cut its stake this summer + while many problems would attend a restructuring of columbia investors say mr. spiegel is <unk> such a plan to <unk> columbia 's junk problems + indeed columbia executives recently told reporters they were interested in creating a separate unit to hold columbia 's junk bonds and perhaps do merchant banking + columbia wo n't comment on all the speculation + but like other thrifts it 's expected to seek regulators ' consent to create a distinct junk-bond entity + plans to do this are due to be filed in a week or so + new rules force thrifts to write down their junk to market value then sell the bonds over five years + that 's why columbia just wrote off $ N million of its junk and reserved $ N million for future junk losses + but if columbia could keep its junk bonds separate from the thrift till they mature at full value unless the issuer goes <unk> or <unk> the junk portfolio might do all right + columbia a longtime drexel client wo n't provide current data on its junk + but its N big junk holdings at year end showed only a few bonds that have been really battered + these were allied stores western union telegraph gillett holdings sci television and texas air though many other bonds in columbia 's portfolio also have lost value + possibly offsetting that columbia recently estimated it has <unk> gains on publicly traded equity investments of more than $ N million + it also hopes for ultimate gains of as much as $ N million on equity investments in buy-outs and restructurings + one trial balloon mr. spiegel is said to have <unk> to investors columbia might be broken up as mellon bank was split into a good bank and a bad bank + but columbia 's good bank would be a regulated thrift while the bad bank would be a private investment company holding some of columbia 's junk bonds real estate and equity investments + some think columbia 's thrift which now is seeking a new chief operating officer might be capitalized at say $ N million and <unk> to a commercial bank that wants a california presence + the thrift surely could be sold for more than the value of its equity financial industry executives say + meanwhile the bad bank with the junk bonds and some capital might be spun off to columbia shareholders including mr. spiegel who might then have a new career investors say + it is n't clear how much a restructuring would help columbia stockholders + but the concept is <unk> + you sell the good bank as an ongoing operation and use some of the proceeds to capitalize the bad bank says thrift specialist lewis <unk> of <unk> associates in new york + mr. spiegel 's next career move is a subject of speculation on wall street + few people think mr. spiegel wants to run a bread-and-butter thrift which current rules would force columbia to become + they are n't really a thrift says jonathan gray a sanford c. bernstein analyst + of course regulators would have to approve columbia 's reorganization + and some investment bankers say a restructuring is n't <unk> while the sec still is <unk> mr. spiegel 's past junk-bond trades + <unk> <unk> in los angeles contributed to this article + columbia savings & loan nyse symbol <unk> + business savings and loan + year ended dec. N N net income $ N million or $ N a share + third quarter sept. N N net loss $ N a share vs. net income N cents a share + average daily trading volume N shares + common shares outstanding N million + note all per-share figures are fully diluted + genetics institute inc. cambridge mass. said it was awarded u.s. patents for <unk> and bone <unk> protein + the patent for <unk> covers materials and methods used to make the human blood cell growth factor via <unk> dna technology + <unk> ltd. has licensed certain manufacturing and marketing rights for <unk> from genetics institute and is conducting <unk> studies with it + <unk> may help in treating blood cell deficiencies associated with cancer treatment bone <unk> transplants and other <unk> disorders genetics institute said + the second patent describes bone <unk> <unk> a substance that can induce formation of new <unk> + the patent covers <unk> type proteins and pharmaceutical <unk> and methods for treating bone or <unk> defects genetics institute said + the company added that it has filed patent applications on a large number of different <unk> proteins and the patent on <unk> is the first it has received + <unk> products may be useful in <unk> <unk> and in treating bone loss associated with <unk> disease and certain cancers the company said + the bush administration 's nomination of <unk> thomas to a seat on the federal appeals court here received a blow this week when the american bar association gave mr. thomas only a qualified rating rather than well qualified + people familiar with the senate judiciary committee which will vote on the nomination said some liberal members of the panel are likely to question the aba rating in hearings on the matter + mr. thomas currently chairman of the equal employment opportunity commission would add another conservative voice to the closely divided court + groups have accused him of <unk> policies that narrowed rights of older workers and of ignoring discrimination by large companies + <unk> members of the house with jurisdiction over the <unk> have said they oppose mr. thomas 's nomination because of serious questions about his judgment and respect for the law + a senior justice department official however said the administration is n't worried about the aba rating + we 're pleased the aba rated him qualified david runkel the department 's chief spokesman said in an interview + the aba gives a qualified rating to <unk> it believes would perform <unk> on the bench + in contrast the lawyers ' association gives a well qualified rating to those regarded as one of the best available for the vacancy + <unk> ag said it agreed to acquire N N of <unk> ag from the ferdinand <unk> foundation + terms were n't disclosed + <unk> a diversified frankfurt west <unk> metals group said it is buying the stake in the specialized engineering company to expand its production of environmental supplies for power plants + <unk> ' product mix of specialized <unk> and pipes provides a good fit with its own <unk> g.m.b h. plant engineering unit the company said + the move is part of a strategy to focus on its core metals trading processing and plant engineering activities while shedding peripheral units the company said + <unk> had N sales of N million marks $ N million and has a current order backlog of N billion marks + the sale comes in place of a planned initial public offering of <unk> stock + a plan to bring the stock to market before year end apparently was upset by the recent weakness of frankfurt share prices + the u.s. international trade commission issued preliminary rulings under the u.s. <unk> act that imports of <unk> from hong kong taiwan and south korea may be <unk> a domestic industry + because of the rulings the commerce department will continue to investigate complaints by u.s. <unk> makers that the imports are reaching the u.s. at unfairly low prices in violation of the u.s. <unk> act + the law <unk> unfairly low prices as ones below the cost of production or below prices in an exporter 's home market + <unk> officials said final commerce department and <unk> rulings wo n't come until next march or later + if both agencies find violations of the u.s. trade law the u.s. would assess penalty duties on the imports which already are subject to import quotas under <unk> textile and apparel trade agreements + imports of <unk> <unk> in N totaled about $ N million from taiwan $ N million from south korea and $ N million from hong kong according to the <unk> + in another action the <unk> dismissed <unk> act complaints filed by du pont co. of wilmington del. against imports of <unk> a type of synthetic rubber from france and west germany + these imports totaled about $ N million last year + upjohn co. said it will offer an early retirement package to as many as N employees in a cost-cutting move expected to result in a fourth-quarter charge + upjohn officials said they could n't estimate the size of the charge until they determine which employees and how many will participate in the retirement plan + but the pharmaceutical company said it anticipates the long-term savings resulting from the plan 's <unk> will more than offset short-term costs + the program available to upjohn employees N years old or older could increase an individual 's retirement benefits N N to N N + in addition upjohn is offering a one-time retirement bonus equal to six months of base pay + chairman <unk> <unk> called the program part of the company 's two-year strategy to implement budget constraints and an effective <unk> program + but some analysts questioned how much of an impact the retirement package will have because few jobs will end up being eliminated + it 's a cosmetic move said jonathan s. <unk> of wertheim schroder & co + according to upjohn 's estimates only N N to N N of the N eligible employees will take advantage of the plan + upjohn further estimated that about N N of the employees who leave for early retirement may be replaced + as a result upjohn will likely trim only about N to N of its more than N jobs world-wide + in composite trading on the new york stock exchange yesterday upjohn shares rose N cents to $ N apiece + an upjohn spokesman said he had heard nothing to suggest the early retirement package was spurred by shareholder pressure or a potential bidder for the company which occasionally has been the target of takeover speculation + the company earlier this year adopted a <unk> plan to ward off unwanted suitors + the spokesman said it is the first early retirement plan offered under its two-year <unk> strategy + earlier <unk> moves have trimmed about N jobs the spokesman said + <unk> inc chandler ariz. + jerry <unk> managing director of <unk> associates was elected a director of this business telecommunications software and systems concern + he increases the board to seven + feeding frenzy henry holt N pages $ N a highly detailed account of the wedtech scandal begins on a reassuring note + right up front in the <unk> co-author william <unk> gives us an example of his own integrity + when offered a free trip from the bronx wedtech 's home to washington d.c. by one of wedtech 's principals he tells the reader <unk> of accepting anything of value from those i was writing about i declined + any question as to why an author would believe this <unk> <unk> note of assurance is necessary is answered by reading this book about <unk> fingers and <unk> <unk> + bribe by bribe mr. <unk> and his co-author <unk> c. harrison jr. lead us along the path wedtech traveled from its inception as a small manufacturing company to the status of <unk> defense contractor <unk> with the task of producing vital equipment for the army and navy + the book <unk> around john <unk> the founder of the company and fred neuberger who became his partner soon after wedtech 's creation + although started in N wedtech did n't really get rolling until N when mr. neuberger discovered the federal government 's section N a minority business program + this is a <unk> great society creation that <unk> certain government contracts be awarded <unk> to minority businesses + mr. neuberger realized that although of italian <unk> mr. <unk> still could qualify as a minority person since he was born in puerto rico + the two partners merely had to <unk> the true ownership of the corporation + instead of N it became on paper only two-thirds <unk> one-third neuberger and they were in the program and off to the races + besides being a <unk> company wedtech was located in the south bronx a <unk> area made famous by <unk> carter in his N presidential campaign + the company <unk> itself right into carter campaign rhetoric about rebuilding the south bronx and kept using the minority south bronx <unk> through the reagan '80s + starting with congressman mario <unk> now serving a jail sentence the company began a career of <unk> federal state and local public officials and those close to public officials right up to and including e. robert <unk> close friend and adviser to former attorney general ed <unk> + wedtech did n't just use old <unk> bribery + it made ample use of the modern techniques of influence peddling retaining politically connected respectable law firms investment bankers and political consultants including reagan <unk> <unk> <unk> + when necessary it sought and received assistance from organized crime + sometimes the <unk> became partners in the company + wedtech management used the merit system + if you were especially helpful in a corrupt scheme you received not just cash in a bag but equity + if you were not an effective <unk> you found yourself out in the cold a fate that eventually <unk> mr. <unk> the firm 's <unk> minority person + but despite the <unk> nature of the <unk> and the <unk> <unk> tabloid writing style feeding frenzy often falls short of <unk> reading + none of the scams show much <unk> auditors found <unk> the first day on the job + wedtech 's <unk> simply <unk> them to shut up + the <unk> themselves were <unk> low <unk> <unk> consumers who wanted big houses mercedes cars beautiful women expensive clothes + among the lot of them not one is <unk> with good and evil or especially <unk> or even temporarily <unk> + the one character at least somewhat interesting was irving louis <unk> a <unk> who changed his name to <unk> kent london and became a master <unk> and author of a book on <unk> + he enters the story toward the end just in time to get arrested + absorbed in <unk> out feeding frenzy 's <unk> the authors <unk> over the root causes of wedtech namely the section N a federal program under whose <unk> the scandal took place + they do at least come around to saying that the courts might want to end rigid <unk> action programs + programs like section N a are a little like leaving gold in the street and then <unk> surprise when thieves walk by to <unk> it up + numerous other scandals among them the ones at hud have the same <unk> as wedtech + they take place in government programs that seem <unk> for corruption + why are programs like this not eliminated + feeding frenzy does provide a few clues + in and around all levels of government in the u.s. are groups of people who can best be described as <unk> to a political insider commercial party + they know that whenever government is <unk> wealth <unk> commerce or maintaining a large defense establishment there is big money to be made in <unk> <unk> or selling the processes and decisions of government + they are our version of the east bloc 's <unk> and they have absolutely no wish to see anything change + how many government programs and policies exist because they line the pockets of political insiders + this is the real issue raised by the wedtech scandal + mr. stern was chairman and chief executive officer of the new york state urban development corp. N + the finnish government and major creditors of bankrupt shipyard waertsilae marine industries oy agreed in principle to form a new company to complete most of the troubled shipyard 's backlog of N ships + the new company will attempt to limit the shipyard 's losses participants said + the situation is that the bankruptcy court will get out of the shipbuilding business + everything will be taken over by the new company said christian andersson executive vice president of oy waertsilae former parent of waertsilae marine + once its ownership is <unk> the new company will open talks with <unk> <unk> to buy or lease waertsilae marine 's shipyard facilities + <unk> will be offered a settlement and a swift transition to new management is expected to <unk> an exodus of skilled workers from waertsilae marine 's two big <unk> government officials said + under an accord signed yesterday the government and union bank of finland would become major shareholders in the new company each <unk> N million finnish <unk> $ N million + oy waertsilae is to contribute N million <unk> most of it as subordinated debt and take a minority stake in the new company + customers holding contracts for waertsilae marine 's <unk> ships are expected to subscribe most of the remaining N million <unk> in share capital government officials said + waertsilae marine 's biggest creditor is miami-based carnival cruise lines inc + carnival which has three ships on order from waertsilae marine presented claims for $ N billion damages in the bankruptcy court this week + waertsilae marine 's bankruptcy proceedings began tuesday in a <unk> court + its plans to be acquired dashed comprehensive care corp. said it plans to sell most of its psychiatric and drug abuse facilities in california and some other assets to pay its debt and provide working capital + in all the company hopes to repay $ N million in debt through the sales which will completely <unk> its secured debt the company said + in addition the company has replaced its president and chief executive naming w. james <unk> head of the company 's contract health services to succeed b. lee <unk> + mr. <unk> said he was extremely disappointed in the continuing deterioration of the company 's operations while it attempted to conclude the reorganization during the past four months + <unk> with mr. <unk> 's appointment comprehensive care moved its corporate headquarters from irvine calif. to st. louis where the company maintained its contract services offices + mr. <unk> continues as chairman + comprehensive care had agreed to be acquired by closely held first hospital corp. of norfolk va. but the sale <unk> almost from the beginning and finally collapsed last week + in composite trading on the new york stock exchange yesterday comprehensive care closed at $ N a share up N cents + ralston <unk> co. reported a N N decline in fourth-quarter earnings reflecting restructuring costs as well as a more difficult pet food market + the st. louis company earned $ N million or N cents a share compared with $ N million or $ N a share a year earlier + sales in the latest period were $ N billion a N N increase from last year 's $ N billion + for the year ended sept. N ralston earned $ N million or $ N a share up N N from $ N million or $ N a share + this year 's results included a gain of $ N million on the disposal of <unk> operations + sales for the full year were $ N billion up N N from $ N billion + ralston said its restructuring costs include the <unk> of a battery facility in greenville n.c. the recent closing of a <unk> <unk> <unk> in cincinnati and a reduction in staff throughout the company + the battery plant which makes <unk> nickel <unk> and carbon <unk> products will be closed over the next year or so a spokesman said + ralston attributed its fourth-quarter slump partly to higher costs of <unk> in the pet food business as well as competitive pressures which required higher advertising spending + for the year pet food volume was flat the company said + its cereal division realized higher operating profit on volume increases but also spent more on promotion + the continental <unk> business benefited from higher margins on bread and on increased <unk> sales it added + ralston said its <unk> battery unit was hurt by continuing economic problems in south america + ralston shares closed yesterday at $ N off $ N in new york stock exchange composite trading + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + first chicago corp. said it completed its $ N million <unk> acquisition of closely held <unk> financial corp. another chicago bank holding company + the record <unk> binge by the soviet union is causing serious <unk> in the u.s. grain pipeline + the soviet purchases are so massive that exporters are struggling to find enough river <unk> and trains to move the recently <unk> midwest crop to ports for <unk> onto soviet ships + river <unk> rates have soared N N this fall from a year earlier + railroad companies and some ports are <unk> a sudden <unk> of business + and some grain analysts are predicting that corn prices might <unk> this month as exporters <unk> to find enough of the crop to meet their obligations to the soviets + the soviet union bought roughly N million <unk> of u.s. corn in october which is the most ever sold to the soviet union in one month from the u.s. + the soviet union wants much of it delivered by january which would be a strain in most years + but it is particularly difficult this autumn because of low water levels on the mississippi river on which flows much of the u.s. corn that is shipped overseas + we are shipping the most corn in that short of time period to one customer on record said william <unk> a u.s. agriculture department transportation expert + it is going to be real tight + because of persistent dry weather in the northern plains the water level on the upper section of the mississippi river is so low that many river operators are already trimming the number of <unk> their <unk> push at one time + in a few weeks many <unk> probably wo n't be able to operate fully loaded south of st. louis because the u.s. army corps of engineers is beginning to reduce the flow of the missouri river which feeds into the mississippi river + the army corps is cutting the flow of the missouri river about two weeks earlier than normal because of low water levels in the <unk> that feed it + <unk> rates on the mississippi river sank yesterday on speculation that widespread rain this week in the midwest might temporarily alleviate the situation + but the army corps of engineers expects the river level to continue falling this month + at st. louis the water level of the mississippi river is already N feet below normal and it could drop an additional N feet when the flow of the missouri river is slowed an army corps spokesman said + similar levels <unk> <unk> shipments last year in the wake of the worst drought in N years + so far the grain industry 's <unk> <unk> problems have n't been a major factor in the trading of corn contracts at the chicago board of trade + many grain processors and exporters use the price of the corn futures contracts traded there to calculate the price they offer to buy corn from farmers + at the board of trade yesterday the price of the corn contract for december delivery slipped N cents a bushel to settle at $ N a bushel + corn prices have been sluggish this fall despite the huge soviet orders because the harvest has allowed farmers to rebuild the <unk> <unk> by the N drought + with the harvest <unk> down however some analysts are <unk> that prices might jump in some regions as u.s. exporters try to gather the corn they are obligated to deliver + farmers are in the best position of many years to push up corn prices + because the drought reduced u.s. <unk> they have more than enough storage space for their new crop and that permits them to wait for prices to rise + in parts of iowa for example some grain elevators are offering farmers $ N a bushel for corn + many farmers probably would n't sell until prices rose at least N cents a bushel said <unk> reed president of chicago central & pacific railroad co. of <unk> iowa + it is n't clear however who would win a waiting game + although u.s. corn <unk> shrank by roughly half in the wake of the drought the agriculture department projects that nearly <unk> of the harvest will still be in storage before the N corn harvest begins + some analysts are worried that reports of the grain industry 's problems might spark investors to begin buying corn futures contracts only to see little appreciation + the public is buying the market when in reality there is plenty of grain to be shipped said bill <unk> <unk> inc. research director + although much of this country 's export corn goes to new orleans by <unk> it is possible for exporters to <unk> the mississippi river by shipping a <unk> amount of corn by train to the port + ports in the great <unk> and atlantic coast can also relieve pressure on new orleans + one railroad for example is already increasing its grain <unk> service from indiana to baltimore + and it is n't clear that the soviet union will stay on its record buying pace + the soviet orders were <unk> into the month of october because of delays + the soviet union usually begins buying u.s. crops earlier in the fall + but its purchases apparently were delayed by a reorganization of its agricultural bureaucracy as well as budget problems + in other commodity markets yesterday + energy crude oil futures prices increased in moderate trading but much of the action was in heating oil + prices rose on the news that a sizable west german refinery was damaged in a fire tightening an already tight european market + heating oil for november delivery ended at N cents a <unk> up one cent on the new york mercantile exchange + west texas intermediate for december delivery advanced N cents to $ N a barrel + gasoline futures continued a sell-off that began monday + precious metals futures prices eased as increased stability and strength came into the securities markets + december delivery gold fell $ N an ounce to $ N + december silver declined N cents an ounce to $ N + january platinum was down $ N an ounce at $ N + precious metals gold in particular currently are being influenced more by stock market gyrations than the dollar as traders seek greater investment stability according to william <unk> vice president of research at elders futures in new york + the recent rally in precious metals was a result of uncertainty and volatility in equities he said + yesterday the stock market rose strongly creating a more defensive attitude among precious metals traders he said + silver and platinum which have more of an industrial nature than gold were even weaker he said + silver is also under pressure of extremely high inventories in warehouses of the commodity exchange he said + yesterday these stocks rose by N ounces to a record of N ounces according to an exchange spokesman + copper futures prices partially recovered monday 's declines because <unk> miners voted to strike + the december contract rose N cents a pound to $ N + in chile workers at two copper mines los <unk> and el <unk> which belong to the <unk> <unk> <unk> yesterday voted to begin a full strike tomorrow an analyst said + reasons for the <unk> the analyst said included a number of procedural issues such as a right to strike + the analyst noted that also inherent in all metal markets was a sympathetic reaction to stocks + in the case of copper he said the upbeat mood of stocks was reflected in demand for futures contracts because a stronger economy means greater buying interest for the metal + also contributing to the <unk> in copper the analyst noted was a report by chicago purchasing agents which <unk> the full purchasing agents ' report that is due out today and gives an indication of what the full report might hold + the purchasing management association of chicago 's october index rose to N N after three previous months of <unk> below N N + the september index was N N + a reading below N N generally indicates a slowing in the industrial sector of the economy while a reading above N N points to expansion + the chicago report raised the possibility that the october survey of the national association of purchasing management would also show a reading above N N + ncr corp. unveiled two models of its tower line of <unk> computers and introduced advanced <unk> software to allow the tower family to operate as a central hub in a network of computers + the new software is based on <unk> inc. 's <unk> network operating system software + usx corp. posted a N N drop in third-quarter profit as improved oil results failed to offset weakness in steel and natural gas operations + the nation 's largest steelmaker earned $ N million or N cents a share compared with the year-earlier $ N million or N cents a share + the recent quarter includes pretax gains of $ N million from asset sales while like gains in the year-earlier quarter totaled $ N million + in the N period usx also had a $ N million after-tax gain from a tax dispute settlement + sales rose N N to $ N billion from $ N billion + the earnings drop appears particularly steep in comparison with last year 's unusually strong third quarter when the company was riding an industrywide boom in demand and pricing + however third-quarter operating profit fell N N as usx sold sizable chunks of its diversified and steel segments eliminating income from those operations + among segments that continue to operate though the company 's steel division continued to suffer from soft demand for its <unk> goods serving the oil industry and other markets + peter marcus an analyst with painewebber inc. said that a downturn in the <unk> industry coupled with sluggish automotive sales hurt usx results + moreover usx exports more than other steelmakers and the overseas market has been under more severe pricing pressure + the company attributed lower sales and earnings for the steel segment to the loss of results from the <unk> ohio plant which now is a N joint venture with japan 's kobe steel ltd + in the steel division operating profit dropped N N to $ N million + profit per ton of steel shipped dropped to about $ N a ton from $ N a ton last year and $ N a ton in the second quarter analysts said + still usx fared better than other major steelmakers earning more per ton of steel shipped than either bethlehem steel corp. which posted a N N drop in net income or inland steel industries inc. whose profit plummeted N N + in new york stock exchange composite trading yesterday usx shares closed up $ N at $ N as the reported earnings exceeded projections by some analysts who had n't expected as great a volume of asset sales + the rise in the stock 's price may also reflect the fact that usx 's steel segment fared better than some other steelmakers ' + charles bradford an analyst with merrill lynch capital markets said usx may have received orders lost by competitors who were involved in labor contracts earlier this year + he said usx also appeared to sell a richer mix of steel products such as the more profitable pipe and galvanized coated sheet than <unk> structural goods + the energy segment with a N N rise in operating profit is clearly the company 's strongest + higher crude oil prices helped boost operating profit for the marathon oil co. unit to $ N million from $ N million + the texas oil & gas division continues to operate in the red although losses narrowed to $ N million from $ N million + usx announced in october that it was soliciting bids to sell <unk> 's oil and gas reserves + proceeds of that sale are to be used to reduce debt and buy back shares + the company noted that it has reduced debt by $ N billion since the end of N and bought back about N million shares of common stock since the fourth quarter of N + usx has about $ N billion in long-term debt and N million shares outstanding + the announced sale of the reserves was followed by news that investor carl icahn had increased his stake in usx to N N and threatened a takeover or other business combination + mr. icahn has said he believes usx would be worth more if broken up into steel and energy segments + profit for the nine months jumped N N to $ N million or $ N a share from $ N million or $ N a share + sales rose N N to $ N billion from $ N billion + john f. barrett N formerly executive vice president and chief financial officer was named president and chief operating officer posts which had been vacant + leon j. level vice president and chief financial officer of this computer services concern and f. warren <unk> a professor at harvard university 's graduate school of business were elected directors increasing board membership to nine + david a. <unk> president of metal container division was named to the additional post of group vice president packaging products at this packaging industrial and aerospace products concern succeeding <unk> a. davis who was named president and chief operating officer in august + two leading <unk> experts said president bush does n't have the legal authority to exercise a line-item veto + professors philip <unk> of the university of chicago and laurence tribe of harvard law school said any effort by president bush to claim authority for a line-item veto would <unk> the text of the constitution and the intent of its authors as well as the views of previous presidents + a line-item veto is a procedure that would allow a president to veto part of a big congressional spending bill without having to scuttle the entire measure + mr. bush has said he would like to be able to use this procedure + a white house spokesman said last week that the president is considering declaring that the constitution <unk> gives him the authority for a line-item veto to <unk> a test case + but the two legal experts responding to an inquiry by sen. edward kennedy d. mass. wrote in a joint letter that the president lacks the constitutional authority to exercise a line-item veto + the two professors represent different ends of the political spectrum mr. <unk> is a conservative and mr. tribe is a liberal + the two professors said the constitution <unk> the president to veto entire bills not partial measures + moreover they said the first appropriations bill passed N years ago covered many different items and there was no discussion of a line-item veto + they also said that more than a dozen presidents have called for line-item veto authority since the civil war and all have shared the view that such <unk> power is beyond the reach of the president + sen. kennedy said in a separate statement that he supports legislation to give the president line-item veto power but that it would be a reckless course of action for president bush to claim the authority without congressional approval + trinity industries inc. said it reached a preliminary agreement to sell N <unk> <unk> to <unk> train co. of chicago + terms were n't disclosed + trinity said it plans to begin delivery in the first quarter of next year + in an oct. N review of the <unk> at chicago 's goodman theatre <unk> <unk> take the stage in <unk> city leisure & arts the role of <unk> played by kim <unk> was mistakenly attributed to <unk> <unk> + ms. <unk> plays <unk> + <unk> motor cars inc. said it expects its u.s. sales to remain steady at about N cars in N + the luxury auto maker last year sold N cars in the u.s. + howard <unk> president and chief executive officer said he anticipates growth for the luxury auto maker in britain and europe and in far eastern markets + bell industries inc. increased its quarterly to N cents from seven cents a share + the new rate will be payable feb. N + a record date has n't been set + bell based in los angeles makes and distributes electronic computer and building products + investors are appealing to the securities and exchange commission not to limit their access to information about stock purchases and sales by corporate insiders + a sec proposal to ease reporting requirements for some company executives would undermine the <unk> of information on insider trades as a <unk> tool individual investors and professional money managers contend + they make the argument in letters to the agency about rule changes proposed this past summer that among other things would exempt many <unk> executives from reporting trades in their own companies ' shares + the proposed changes also would allow executives to report exercises of options later and less often + many of the letters maintain that investor confidence has been so shaken by the N stock market crash and the markets already so <unk> against the little guy that any decrease in information on insider-trading patterns might prompt individuals to get out of stocks altogether + the sec has historically paid <unk> to the ideal of a level playing field wrote <unk> s. <unk> of <unk> ill. in one of the N letters the agency has received since the changes were proposed aug. N + apparently the commission did not really believe in this ideal + currently the rules force executives directors and other corporate insiders to report purchases and sales of their companies ' shares within about a month after the transaction + but about N N of the insiders according to sec figures file their reports late + the changes were proposed in an effort to streamline federal bureaucracy and boost compliance by the executives who are really calling the shots said brian lane special counsel at the sec 's office of disclosure policy which proposed the changes + investors money managers and corporate officials had until today to comment on the proposals and the issue has produced more mail than almost any other issue in memory mr. lane said + the sec will probably vote on the proposal early next year he said + not all those who wrote oppose the changes + the committee on federal regulation of securities for the american bar association argues for example in its lengthy letter to the sec that the proposed changes would substantially improve the law by <unk> it more closely to contemporary business realities + what the investors who oppose the proposed changes object to most is the effect they say the proposal would have on their ability to spot <unk> <unk> of trading activity buying or selling by more than one officer or director within a short period of time + according to some estimates the rule changes would cut insider filings by more than a third + the sec 's mr. lane <unk> disputed those estimates + the rules will eliminate filings <unk> divisions such as sales marketing finance and research and development mr. lane said + the proposed rules also would be tougher on the insiders still required to file reports he said + companies would be <unk> to publish in annual proxy statements the names of insiders who fail to file reports on time + considered as a whole mr. lane said the filings required under the proposed rules will be at least as effective if not more so for investors following transactions + but robert <unk> president of <unk> a north miami fla. company that packages and sells the insider-trading data said the proposal is <unk> so <unk> that key officials may fail to file the reports + many investors wrote asking the sec to require insiders to report their purchases and sales immediately not a month later + but mr. lane said that while the sec <unk> who files the law tells them when to do so + investors who want to change the required timing should write their representatives in congress he added + the sec would likely be <unk> to legislation that required insiders to file transactions on a more timely basis he said + the nation 's largest pension fund which oversees $ N billion for college employees plans to offer two new investment options to its N million participants + the teachers insurance and annuity <unk> retirement equities fund said it will introduce a stock and bond fund that will invest in <unk> responsible companies and a bond fund + both funds are expected to begin operation around march N subject to securities and exchange commission approval + for its employees to sign up for the options a college also must approve the plan + some N institutions are part of the pension fund + the new options carry out part of an agreement that the pension fund under pressure to relax its strict participation rules and to provide more investment options reached with the sec in december + the new social choice fund will <unk> securities of companies linked to south africa nuclear power and in some cases northern ireland + also excluded will be investments in companies with significant business stemming from weapons manufacture <unk> <unk> or tobacco + <unk> percent of the fund will be invested in stocks with the rest going into bonds or short-term investments + the bond fund will invest in high-grade or <unk> bonds mortgages or asset-backed securities including as much as N N in foreign securities + the fund also might buy and sell futures and options contracts subject to approval by the new york state insurance department + under two new features participants will be able to transfer money from the new funds to other investment funds or if their jobs are terminated receive cash from the funds + the investment choices offered by the pension fund currently are limited to a stock fund an annuity and a money-market fund + new <unk> scientific co. a maker of biotechnology instrumentation and equipment said it adopted an anti-takeover plan giving shareholders the right to purchase shares at half price under certain conditions + the company said the plan under review for some time will protect shareholders against <unk> takeover tactics + w. ed tyler N years old a senior vice president at this printing concern was elected president of its technology group a new position + solo <unk> players have to be creative if they want to work a lot because their <unk> and audience appeal are limited + the <unk> <unk> <unk> has taken a hard line about the problem he commissions and <unk> <unk> <unk> contemporary scores and does some conducting so he does n't have to play the same <unk> and <unk> <unk> over and over again + richard stoltzman has taken a <unk> more <unk> approach + years ago he <unk> with the new music <unk> peter <unk> and fred <unk> in the very <unk> chamber group <unk> which won audiences over to <unk> contemporary scores like <unk> 's <unk> for the end of time + today the <unk> <unk> has mostly dropped the <unk> work though a touch of the old <unk> still <unk> and now goes on the road with piano bass a slide show and a <unk> that ranges from light classical to light jazz to light pop with a few notable exceptions + just the thing for the <unk> set the <unk> audience that has embraced new age as its very own easy listening + but you ca n't dismiss mr. stoltzman 's music or his <unk> as merely commercial and <unk> + he believes in what he plays and he plays <unk> + his recent appearance at the metropolitan museum dubbed a musical <unk> was a case in point + it felt more like a party or a highly <unk> <unk> session with a few friends than a classical concert + <unk> in his trademark black <unk> suit the <unk> <unk> announced that his new <unk> inner voices had just been released that his family was in the front row and that it was his mother 's birthday so he was going to play her favorite tune from the record + he launched into <unk> 's the <unk> from carnival of the animals a favorite <unk> piece for <unk> with lovely glossy tone and no <unk> + then as if to show that he could play fast as well he offered the second movement from <unk> 's <unk> for <unk> a <unk> <unk> <unk> that reflected the <unk> side of the stoltzman <unk> + and so it went through the first half an <unk> chosen <unk> of pieces none longer than five minutes none that would <unk> or challenge a <unk> + mr. stoltzman introduced his colleagues bill douglas <unk> and an old buddy from yale and jazz <unk> eddie <unk> + an <unk> section was built around pieces by mr. douglas beginning with golden rain a <unk> <unk> lead in to the <unk> sky which gave mr. stoltzman the opportunity to <unk> in a high register and show off his fleet fingers + <unk> 's air followed + mr. stoltzman tied the <unk> in by <unk> him the great <unk> of the <unk> century and then built on the image by joining with mr. douglas in some <unk> two-part <unk> <unk> arranged for <unk> and <unk> by mr. douglas + keeping the mood light the two then <unk> and <unk> their way through some <unk> <unk> devised by mr. douglas as an alternative to <unk> 's dry <unk> techniques and then with mr. <unk> soared and <unk> on the <unk> 's tight <unk> <unk> + the end of the first half however brought what the <unk> crowd seemed to be waiting for the pop singer <unk> collins who appears on inner voices + glamorous and <unk> as ever ms. collins sang <unk> mitchell 's for free about an <unk> with a <unk> <unk> to which mr. stoltzman contributed a <unk> <unk> and mr. douglas 's <unk> setting of a <unk> blessing deep peace + deep peace also featured a slide show of lovely but predictable images of clouds <unk> <unk> <unk> etc + it was all too <unk> to be believed but they probably would have gotten away with it had they not felt <unk> to add ms. collins 's signature tune amazing grace and ask for audience participation + that went over the permissible line for warm and <unk> feelings + was this why some of the audience <unk> before or during the second half + or was it because ms. collins had gone + either way it was a <unk> because mr. <unk> offered the most substantial music of the evening just after <unk> steve reich 's new york <unk> one of a series of reich works that <unk> a live performer with recorded tracks of his or her own playing + mr. reich 's new different trains for string <unk> uses the technique <unk> + mr. stoltzman must have worried that his audience might not be able to take it he warned us in advance that new york <unk> lasts N N minutes + he also unfortunately illustrated this <unk> <unk> <unk> with mr. <unk> 's images this time of <unk> or <unk> <unk> in a <unk> <unk> of the musical structure that was <unk> <unk> from mr. reich 's piece and mr. stoltzman 's elegant execution of it + the rest of the concert was more straight jazz and <unk> sounds written by charlie parker <unk> coleman bill douglas and eddie <unk> with pictures for the douglas pieces + it was <unk> to hear accomplished jazz without having to sit in a <unk> club but like the first half much of it was easy to take and ultimately <unk> + is this the future of chamber music + managers and <unk> insist that chamber music <unk> are a hard sell but can audiences really enjoy them only if the music is <unk> of threatening elements served up in <unk> <unk> and accompanied by <unk> + what 's next + <unk> to illustrate <unk> <unk> + it was not an <unk> evening certainly thanks to the high level of performance the <unk> <unk> of mr. douglas and the obvious <unk> with which mr. stoltzman chooses his <unk> + but it was neither deep nor lasting light entertainment that was no substitute for an evening of <unk> + ms. <unk> is a free-lance writer based in new york + one of ronald reagan 's attributes as president was that he rarely gave his blessing to the <unk> that passes for consensus in various international institutions + in fact he <unk> the u.s. from one of the world 's most corrupt organizations unesco + this is the u.n. group that managed to <unk> its own charter of promoting education science and culture + ever since the remaining members have been desperate for the united states to <unk> this <unk> group + now unesco <unk> are lobbying president bush to <unk> on president reagan 's decision to <unk> + but we can think of many reasons to stay out for the foreseeable future and well beyond + the u.s. along with britain and singapore left the agency when its <unk> <unk> financial corruption and top leadership got out of hand + the personal <unk> of agency director <unk> <unk> drew much attention such as when several of his top aides were uncovered as kgb plants and <unk> from france and when a <unk> office fire was set just before congress sent accountants to <unk> u.s. funds + mr. <unk> was an extreme case but even his replacement the more personally <unk> spanish <unk> <unk> mayor has had little success at <unk> reforms + several ridiculous projects continue including the new international economic order which means <unk> from the west to pay for everyone else 's <unk> + the <unk> new world information order would give government officials rights against the press journalists would be obliged to <unk> to their government which would have licensing and censorship powers and indeed duties to block printing of wrong ideas + unesco somehow converted the founding u.n. <unk> of individual rights and liberty into peoples ' rights + <unk> conferences were held to <unk> on subjects such as ethical responsibilities of scientists in support of <unk> and the impact of the activities of <unk> corporations + the agency was so totally <unk> from the high principles of its founding that even the soviets now wonder about an agency that seemed so <unk> to them + glasnost may be partly responsible but soviet foreign minister eduard shevardnadze last year admitted the <unk> ideological approach undermined <unk> <unk> to unesco + unesco is now holding its <unk> meetings in paris to devise its next projects + mr. mayor 's hope that <unk> to press freedom would survive <unk> seems doomed to failure the current <unk> is <unk> the public and media to avoid manipulation + he has n't been able to replace the <unk> <unk> + soviets remain in charge of education programs a former head of an african military <unk> for executions is in charge of culture and a hard-line polish communist in <unk> directs the human-rights and peace division + of the agency 's N staff members N are in the field working on actual projects such as <unk> and <unk> research + the position of the united states which once contributed N N of the budget is that nothing has changed + john <unk> the assistant secretary of state for international organizations told congress that the continuing <unk> restrictive <unk> programs make <unk> any time soon extremely unlikely + this has n't much bothered the unesco delegates who last week could n't even agree to raise funds by selling off a fancy <unk> french <unk> the agency somehow owns + other countries including west germany may have a hard time <unk> continued membership + we see an even stronger argument against unesco than its <unk> failure to reform + this is that the reagan revolution <unk> eastern europe and <unk> square shows the power of ideas <unk> by international civil <unk> or government <unk> + free markets free minds and free elections have an appeal that seems to get <unk> only when delivered through u.n. organizations which of course are made up largely of governments that fear these principles at home + the <unk> of the united nations are experts at <unk> + this can have its purposes at times but there 's no reason to cloud the importance and <unk> of western <unk> of freedom and justice + we can see plenty of reasons to stay out and none to <unk> unesco + researchers at plant genetic systems n.v. in belgium said they have developed a genetic engineering technique for creating hybrid plants for a number of key crops + the researchers said they have isolated a plant gene that prevents the production of <unk> + the gene thus can prevent a plant from <unk> itself + such so-called <unk> plants can then be <unk> by <unk> from another strain of the plant thereby producing hybrid seed + the new generation of plants will <unk> the <unk> <unk> <unk> known as hybrid <unk> similar to that now seen in hybrid corn + the development could have a dramatic effect on farm production especially cotton said murray robinson president of delta & <unk> land co. a <unk> inc. subsidiary that is one of the largest cotton seed producers in the u.s. + on a commercial scale the <unk> of the <unk> male part has only been achieved in corn and <unk> feed grains + that 's because the male part the <unk> and the female the <unk> are some distance apart on the corn plant + in a <unk> process the seed companies cut off the <unk> of each plant making it male <unk> + they <unk> a row of <unk> plants nearby which then <unk> the <unk> plants + the first hybrid corn seeds produced using this mechanical approach were introduced in the 1930s and they yielded as much as N N more corn than naturally <unk> plants + the vast majority of the u.s. corn crop now is grown from hybrid seeds produced by seed companies + a similar technique is almost impossible to apply to other crops such as cotton soybeans and rice + the male part the <unk> of the plant and the female the <unk> of the same plant are within a fraction of an inch or even attached to each other + the <unk> in these plants are difficult to <unk> off + in china a great number of workers are engaged in pulling out the male <unk> of rice plants using <unk> and one-third of rice produced in that country is grown from hybrid seeds + at plant genetic systems researchers have isolated a <unk> gene that can be inserted in a plant to <unk> male <unk> + jan <unk> research director said this gene was successfully introduced in <unk> <unk> plants a major crop in europe and canada using as a carrier a <unk> gene developed by robert goldberg at the university of california in los angeles + the <unk> gene is expressed just before the <unk> is about to develop and it <unk> the <unk> of every <unk> in the plant + mr. <unk> said this genetic manipulation does n't hurt the growth of that plant + the researchers also pulled off a second genetic engineering <unk> in order to get <unk> plants in large enough numbers to produce a commercial hybrid seed crop + they attached a second gene for <unk> resistance to the <unk> gene + both genes are then inserted into a few greenhouse plants which are then <unk> and allowed to mature and produce seed + the laws of <unk> <unk> that half of the plants <unk> from these <unk> seeds will be male <unk> and <unk> <unk> and half will be male <unk> and <unk> susceptible + the application of <unk> would kill off the <unk> plants leaving a large field of <unk> plants that can be <unk> to produce hybrid seed + mr. <unk> said the hybrid <unk> created with this genetic engineering yield N N to N N more output than the commercial <unk> used currently + this technique is applicable to a wide variety of crops he said and added that some modifications may be necessary to accommodate the <unk> of each type of crop + he said the company is <unk> with the technique on <unk> and plans to include cotton and corn among other crops + he said that even though virtually all corn seeds currently planted are <unk> the genetic approach will <unk> the need for mechanical <unk> of <unk> which costs u.s. seed producers about $ N million annually + in recent years demand for hybrid seeds has spurred research at a number of chemical and biotechnology companies including monsanto co. shell oil co. and eli lilly & co + one technique developed by some of these companies involves a chemical <unk> supposed to kill only a plant 's <unk> + but there have been problems with chemical <unk> damaging plants ' female reproductive <unk> and concern for the <unk> of such chemical <unk> to humans animals and beneficial <unk> + however paul <unk> monsanto 's director of plant sciences said the company 's chemical <unk> <unk> these problems and is <unk> on the female <unk> + <unk> genetics corp. <unk> calif. is developing a <unk> containing a gene that spreads from cell to cell and <unk> with the genes that are responsible for producing <unk> + this gene called <unk> is carried into the plant by a virus that remains active for a few days + robert <unk> president of <unk> called plant genetic 's approach interesting and novel and <unk> rather than competitive + there is a large market out there <unk> for hybrid seeds he said + mr. robinson of delta & <unk> the seed producer in scott <unk> said plant genetic 's success in creating genetically engineered male <unk> does n't automatically mean it would be simple to create <unk> in all crops + that 's because <unk> while easy in corn because the carrier is wind is more complex and involves <unk> as carriers in crops such as cotton + it 's one thing to say you can <unk> and another to then successfully <unk> the plant he said + nevertheless he said he is negotiating with plant genetic to acquire the technology to try breeding hybrid cotton + a bitter conflict with global implications has erupted between nomura securities co. and industrial bank of japan two of the world 's most powerful financial companies + the clash is a sign of a new <unk> and <unk> in japan 's <unk> financial circles + not only are japan 's financial institutions putting their enormous clout to work increasingly they 're <unk> off against one another in unprecedented public fashion + already the consequences are being felt by other players in the financial markets even governments + what triggered the latest clash was a <unk> over the timing of a new zealand government bond issue + nomura was attempting to <unk> the N <unk> $ N million borrowing in japan at a time when many japanese banks led by industrial bank of japan were <unk> the wellington government to help them recover loans made to a <unk> investment bank that had been owned by new zealand 's <unk> pension fund + unwilling to put up new money for new zealand until those debts are repaid most banks refused even to play administrative roles in the new financing forcing an embarrassed nomura to postpone it this week + the dispute shows clearly the global power of japan 's financial <unk> + aside from nomura 's injured pride the biggest victim so far has been the new zealand government + barred by its budget law from making any new domestic bond issues wellington 's debt management office had been casting abroad to raise the N billion new zealand dollars us$ N billion to <unk> N billion it needs to come up with by the end of its fiscal year next june N + with japan 's <unk> banks aligned against it though raising money may be difficult + not only can they block wellington from raising money in japan bankers here say but as the largest underwriters in the <unk> market they might be able to scuttle borrowings there too + new zealand 's finance minister david <unk> <unk> out at such suggestions + he told reporters in wellington tuesday that the government had n't guaranteed the loans to <unk> new zealand ltd. an investment bank <unk> by the national <unk> fund and would n't bail it out + it may very well be what the japanese banks want he told radio new zealand + i think it would be irresponsible and i am not about to be <unk> by japanese banks or any other international interests + no less significant than the japanese banks ' attempt to cut off funds to pressure a foreign government are the implications of a confrontation between japan securities and banking industries + anxiety is rising over recent government proposals to eventually lower the strict barriers that now separate and protect the two industries from each other + both sides are <unk> <unk> their turf and relations have been at a <unk> for months + the banks badly want to break into all aspects of the securities business + meanwhile the securities companies most of them smaller than the banks are seeking access only to limited kinds of banking that would n't open them to the full brunt of competition from the banks + nomura the world 's biggest securities company largely by virtue of its protected home field and industrial bank of japan japan 's most innovative and aggressive bank in capital markets abroad <unk> the opposing sides + and their <unk> of each other run deep + in the past year both have tried to stretch the limits of their businesses + nomura started a credit-card venture with american express co. that allowed <unk> to use their nomura securities accounts like a bank account attracting the <unk> of banks + and industrial bank of japan started up a london securities subsidiary that sells japanese stocks to <unk> institutions overseas a move that <unk> the anger of the stock brokerage firms + the new zealand bond issue simply has brought the two institutions face-to-face + itel corp. reported third-quarter earnings which were mistakenly shown in the quarterly earnings surprises table in yesterday 's edition to be lower than the average of analysts ' estimates + on a pretax basis itel 's third-quarter earnings of N cents a share were actually N N higher than the average of estimates + raymond e. ross N years old formerly group vice president u.s. plastics machinery at this machine tool plastics machinery and robots concern was named senior vice president industrial systems succeeding david a. <unk> who resigned monday + john a. <unk> jr. N was named a managing director at this investment-banking company + he will be in charge of research equity sales and trading and the syndicate operation of rothschild + mr. <unk> was executive vice president and director of the equity division of the international division of nikko securities co + as <unk> <unk> might say it 's <unk> <unk> all over again + <unk> at <unk> <unk> <unk> once oakland 's master thief <unk> <unk> up a <unk> and <unk> it to second + in the <unk> paul blair the <unk> ' <unk> gold <unk> winner <unk> <unk> a fly + on the <unk> former red <unk> great luis <unk> the <unk> master of N moves throws an <unk> strike + <unk> <unk> <unk> their manager a fellow named <unk> <unk> who in a different time handled four world series teams and now handles the gold coast <unk> + <unk> <unk> he says + perhaps + but for the next few months these boys of <unk> long past are going to be <unk> in an indian summer of the soul + now that the baseball season is officially over you see it 's time for a new season to begin + today is the debut of the senior professional baseball association a new <unk> pro sports circuit <unk> after the highly successful senior tennis and golf tours and complete with good salaries a cable television contract and even expansion plans + one hundred and <unk> two former <unk> near <unk> hardly <unk> and <unk> begin a <unk> three-month season in <unk> stadiums up and down florida + for everyone involved it 's one more <unk> of that <unk> of youth baseball + someone always makes you quit says legendary st. louis <unk> <unk> <unk> flood the league 's commissioner + you feel you want one more one more <unk> one more hit one more game + until the <unk> heroes of today reclaim these <unk> for spring training there is one more + and not just for the players + it 's one more for the <unk> lawyers accountants and real estate developers who <unk> up about $ N million each for the chance to be an owner to step into the shoes of a gene <unk> or have a beer with <unk> fingers + nothing can be better than this says don <unk> owner of the west palm beach <unk> + early in the morning mr. <unk> an estate lawyer <unk> over last <unk> and <unk> + midmorning he <unk> an <unk> uniform and for fun may field a <unk> from dave <unk> + it 's one more too for the fans who dream of a season that never ends + i feel like a little kid says a <unk> alex de <unk> a car salesman who has stopped by a workout of the <unk> to slip six <unk> cards to the great man himself to be <unk> + the league 's <unk> hope <unk> and tourists will join <unk> fans like mr. de <unk> and pack the stands to see the seniors + the league is the <unk> of colorado real estate developer james <unk> once a <unk> himself who says he had the idea last january while lying on a beach in australia + when he sent letters offering N retired major <unk> the chance of another season N responded + eventually about N made the trip to florida to compete for the available <unk> + players have to be N or older except for <unk> who are eligible at N because life behind the plate is so rough + for some players the lure is money up to $ N a month + others just released from the <unk> hope the senior league will be their bridge back into the big-time + but as they <unk> <unk> that <unk> rather than <unk> and <unk> old <unk> in the sun it 's clear that most are there to make their fans <unk> again or <unk> the <unk> of seasons past or prove to themselves and their colleagues that they still have it or something close to it + my <unk> is good + real good says <unk> pete <unk> working in the midday heat of the <unk> camp + mr. <unk> who started with the <unk> washington senators says that when he left baseball in N he never looked back + for a long time he ignored baseball altogether even the sports pages + now mr. <unk> a lawyer claims he 'd play for free + you ca n't give it up that easily he says + i tried + the nagging memory of one afternoon <unk> years ago drove jim <unk> a lean <unk> <unk> to take a <unk> leave from selling insurance in texas to try out for mr. <unk> 's team + it does n't replace pitching in the <unk> but it proves to me that i would have been able to play if i 'd stayed healthy he says + back in N late in the season a <unk> mr. <unk> made his only major league appearance five and two-thirds <unk> for the texas <unk> against the chicago white <unk> + he gave up seven hits walked five and did n't get a decision + arm troubles forced him back to the <unk> the next year + there 's a satisfaction in going against the rules offers will <unk> once a <unk> with cincinnati 's big red machine + he means the rule that a player ca n't cut it after a certain age + these days he <unk> to <unk> jobs in his chevy pickup before and after training with the <unk> + while <unk> a beer after practice he <unk> <unk> getting the red <unk> 's carl <unk> to pop out to end the N world series and <unk> the feat against the <unk> ' roy white in N + some of the game 's <unk> <unk> dislike the idea of <unk> men attempting a young man 's sport + i personally do n't enjoy seeing players who i remember <unk> from their playing days running about and being <unk> about their deficiencies says roger <unk> new yorker magazine 's resident baseball <unk> + i feel people should be allowed to remember players as they were + worse says baseball author lawrence <unk> someone will get a heart attack and that will be the end of the whole story + but the <unk> disagree + most are trim + some have been training for months others only recently left active status + no one has worked out the players ' average age but most appear to be in their late <unk> + and there 's pride + i 'm not going to look stupid <unk> former pittsburgh <unk> second <unk> <unk> <unk> sweat <unk> his <unk> as he prepares for some practice swings + it 's going to be a tough league promises the <unk> mr. <unk> + there will be a lot of <unk> + men who have played hard all their lives are n't about to change their habits he says + nonetheless one ca n't help wonder whether the game will be just a little bit slower + at the <unk> <unk> beach municipal stadium mr. blair the 45-year-old former <unk> knows his power is n't what it used to be + so he <unk> + he no longer <unk> the plate + he 's not thinking about home runs anymore just base hits + still how sweet it is he says <unk> the fat sound of the <unk> line drive that <unk> off the center field wall + and do n't expect many complete games by <unk> perhaps three out of N <unk> mr. fingers the former oakland <unk> + expect tricky stuff from <unk> says mr. <unk> the manager + expect <unk> but no <unk> says mr. <unk> + even expect stolen bases says the <unk> and fit mr. <unk> if you know how to slide it 's no problem he says + and expect slower <unk> + i 'm not so young anymore concedes the <unk> <unk> mr. <unk> + i wo n't be throwing N mph but i will throw <unk> he says + <unk> <unk> <unk> at N the league 's oldest player and a <unk> with the <unk> has lost even more speed + <unk> a <unk> of red man into his <unk> he admits the <unk> he brought into the <unk> in N has become a <unk> + its maximum <unk> is N mph + but he is n't worried + he will compensate with the <unk> learned from his years in the <unk> + he has good control + he will keep the ball down move it around + after all he says even to make love you need experience + <unk> corp. said it will acquire the N N of <unk> branch telephone company inc. 's cellular franchise that it does n't own already + terms were n't disclosed + <unk> holds N N of the franchise which has operations in <unk> s.c. and <unk> <unk> + <unk> which provides local telephone service in N states said it exercised its right of first refusal following an offer from an undisclosed third party to acquire the majority position in the franchise + stewart & stevenson services inc. said it received two contracts totaling $ N million to build <unk> <unk> + the separate contracts were from <unk> light & water commission a utility in <unk> <unk> and pse inc. a <unk> operator in houston + stewart & stevenson makes equipment <unk> with diesel and gas <unk> + liberty national bancorp said its acquisition of <unk> deposit bank <unk> ky. first announced in april has been completed in a transaction valued at $ N million + liberty national exchanged about N shares of its common stock for each of <unk> deposit 's N shares outstanding + liberty national a bank holding company has assets exceeding $ N billion + <unk> <unk> was appointed president and chief executive officer of this financially troubled department store chain effective nov. N succeeding frank robertson who is retiring early + mr. <unk> was previously president and chief operating officer of <unk> inc. a retail chain that is owned by toronto-based hudson 's bay co. canada 's largest department store operator + tuesday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + canada 's gross domestic product rose an inflation-adjusted N N in august mainly as a result of <unk> growth statistics canada a federal agency said + the august <unk> was up N N from its year-earlier level + <unk> is the total value of a nation 's output of goods and services + statistics canada said <unk> output in august rose N N from july + output of <unk> industries increased N N + separately statistics canada reported that its <unk> price index dropped N N in september its third consecutive monthly decline + it also reported a N N decline in its <unk> price index for september + columbia pictures entertainment inc. was dropped effective today from the recreational products and services industry group of the dow jones equity market index + columbia pictures is being acquired by sony corp. which is based in japan + people 's savings financial corp. said it will buy back as much as N N of its N million shares outstanding because the stock is undervalued + the holding company said it has been unfairly associated with other banks in new england that have had major loan losses in recent quarters + the company said its people 's savings bank unit does n't have a large exposure to construction and commercial loans that have caused the loan-loss problems in many of the banks + a seat on the chicago mercantile exchange was sold for $ N down $ N from the previous sale <unk> + seats currently are quoted at $ N bid $ N asked + the record price for a full membership on the exchange is $ N set march N + in a surprise move the british government cleared the way for a bidding war for jaguar plc by agreeing to remove an obstacle to a takeover of the auto maker + trade and industry secretary nicholas ridley told the house of commons yesterday that he will <unk> the government 's so-called golden share in the company as long as jaguar shareholders agree + the golden share restricts any individual holding to N N and expires at the end of N + it was in jaguar 's best interests for the company 's future to be assured and the present climate of uncertainty resolved as quickly as possible mr. ridley said + mr. ridley 's decision fires the starting <unk> for perhaps a costly contest between the world 's auto giants for britain 's leading luxury-car maker + both general motors corp. and ford motor co. have been trying to <unk> N N stakes in jaguar + ford which already has an unwelcome N N holding is prepared to bid for the entire company and had lobbied the government to lift the takeover restrictions early + gm has been negotiating a friendly transaction with jaguar that likely would involve joint ventures and an eventual stake of just under N N + but the government 's action which caught jaguar management <unk> may scuttle the gm minority deal by forcing it to fight for all of jaguar + i ca n't believe they gm will let ford have a free run said stephen reitman a european auto industry analyst at <unk> & drew + i am sure they will be going for a full bid + many investors certainly believe a bidding war is imminent + jaguar shares skyrocketed yesterday after mr. ridley 's announcement following their temporary suspension on london 's stock exchange + in late trading the shares were up a <unk> N pence $ N a N N gain to a record N pence on very heavy volume of N million shares + in the u.s. over-the-counter market jaguar shares trading as american depositary receipts closed at $ N up $ N + analysts expect ford will make the first move perhaps today with an initial offer of about N pence $ N a share + such a proposal values jaguar at more than # N billion $ N billion + speculation about a takeover fight has sent jaguar shares soaring in the past six weeks + the share price was <unk> at about N pence before ford 's sept. N announcement of its interest in a minority stake + ford is in the driving seat at the moment observed bob barber an auto analyst at brokers james capel & co + an aggressive ford bid for jaguar would put pressure on gm to make a better offer as the british company 's white knight + such a <unk> could end jaguar 's hopes for remaining independent and <unk> + but it is n't clear how long gm would be willing to fight ford for jaguar + because of their longstanding <unk> gm just wants to make sure ford pays a huge <unk> for jaguar said john lawson an auto analyst at london 's nomura research institute + people close to the <unk> talks agreed that ford now may be able to shut out general motors + it 's either going to be a <unk> or there only may be one player in town one person said + another person close to the talks said it is very hard to justify paying a silly price for jaguar if an <unk> bidding war were to start now + in a statement jaguar 's board said they were not <unk> about the ridley decision in advance and were surprised at the action taken + the statement emphasized that holders representing N N of the shares voting at a special shareholders ' meeting must agree to lift the takeover restrictions + jaguar officials in the u.s. noted that ford as jaguar 's largest shareholder now has the power to call for such a meeting + u.s. auto analysts also noted that ford is in the best position to benefit from the large number of jaguar shares that have moved over the past month into the hands of arbitragers waiting for the highest takeover bid + jaguar 's own defenses against a hostile bid are weakened analysts add because fewer than N N of its shares are owned by employees and management + ford officials in the u.s. declined to comment on the british government 's action or on any plans to call a special jaguar shareholders meeting + but gm officials said they too were surprised by the move which left them to consider all our options and explore matters further + although gm has u.s. approval to buy up to N N of jaguar 's stock it has n't yet disclosed how many shares it now owns + in a prepared statement gm suggested its plans for jaguar would be more valuable in the long run than the initial <unk> investors might reap from a hostile ford bid + our intensive discussions with jaguar at their invitation gm said have as their objectives to create a cooperative business relationship with jaguar that would provide for the continued independence of this great british car company to ensure a secure future for its employees and to provide an attractive long-term return for its shareholders + jaguar was shocked by mr. ridley 's decision because management had believed the government would n't lift the golden share without consulting the company first + indeed the government is taking a calculated risk + mr. ridley 's announcement set off a <unk> of protests from members of the opposition labor party who accused the thatcher administration of backing down on promised protection for a privatized company + the british government retained the single golden share after selling its stake in jaguar in + the conservative government 's decision may reflect its desire to shed a politically sensitive issue well before the next election expected in late N + it 's now a very good time politically to get this over and done with observed daniel jones professor of motor industry management at the university of <unk> in <unk> + the government already <unk> by high interest rates and a slowing economy has been badly hurt by last week 's <unk> in mrs. thatcher 's cabinet + at the same time the government did n't want to appear to favor gm by allowing a minority stake that might preclude a full bid by ford + mr. ridley hinted at this motive in <unk> questions from members of parliament after his announcement + he said he was giving up the golden share to clear the way so the playing field is level between all <unk> + bradley a. <unk> in detroit contributed to this article + dow chemical co. midland mich. and eli lilly & co. indianapolis said they completed the formation of dow <unk> a joint venture combining their <unk> businesses as well as dow 's industrial <unk> business + the companies said dow <unk> will be the largest <unk> agricultural concern in north america with projected <unk> revenue of $ N billion + dow will own N N of the venture with eli lilly holding the rest + the venture will be based in indianapolis + william a. <unk> N years old president of the el paso natural gas co. unit of this energy and <unk> concern was named to the additional post of chief executive officer succeeding <unk> h. <unk> N who continues as a vice chairman of the parent + <unk> <unk> the <unk> founder of this maker of data communications products and a former chairman and chief executive resigned as a director + dataproducts is fighting a hostile tender offer by dpc acquisition partners a group led by new york-based <unk> investments associates + under the circumstances dataproducts said mr. <unk> said he was unable to devote the time required because of other commitments + mr. <unk> will remain as a director <unk> + the company had no comment on whether a replacement would be named + robert <unk> <unk> president <unk> university of florida and a director of this maker of medical devices was named chairman + dr. <unk> N years old succeeds alexander t. <unk> N who did n't stand for re-election due to mandatory board retirement policy + <unk> technologies said william p. <unk> was elected chairman and chief executive officer of this troubled electronics parts maker + the 45-year-old mr. <unk> who has a background in crisis management succeeds alan d. <unk> N + jerome j. <unk> executive vice president and chief financial officer said mr. <unk> was resigning by mutual agreement with the board + he is going to pursue other interests mr. <unk> said + mr. <unk> could n't be reached + mr. <unk> the company said will retain the rest of the current management team + for the nine months ended july N <unk> technologies reported a net loss of $ N on sales of $ N million + that compared with an operating loss of $ N million on sales of $ N million in the year-earlier period + in national over-the-counter trading <unk> technologies shares closed yesterday at N cents a share up N cents + sales of new cars in europe fell N N in september from a year earlier and analysts say the market could continue to soften in the months ahead + after a <unk> pace early this year analysts say the market after a series of sharp swings in recent months now shows signs of retreating + statistics from N countries which normally account for N N of <unk> europe 's passenger car sales showed new car <unk> totaled N in september down N N from august and down N N for the year to date + tokyo stocks rebounded tuesday from two consecutive daily losses in relatively active dealings + london shares also rose while trading in frankfurt west germany ended higher + in tokyo the nikkei index of N selected issues was up N points to N + the index fell N monday + volume on the first section was estimated at N million shares up from N million shares monday + advancing issues outnumbered decliners N to N while N issues were unchanged + <unk> buying targeted at <unk> issues pushed up the nikkei + but other sectors failed to attract investor interest and remained sluggish making overall trading appear mixed + individuals and corporations as well as dealers trading for their own account actively bought tuesday + an official at <unk> securities said these investors feel the need to make quick profits despite <unk> external factors such as political uncertainty tied to the ruling party 's fate at next year 's lower house elections an event which could directly affect the stock market + the tokyo stock price index of all issues listed in the first section which declined N on monday was up N or N N at N on tuesday + the second section index which fell N points monday was up N points or N N to close at N + second section volume was estimated at N million shares unchanged from monday + institutional investors mostly remained on the sidelines tuesday + a fund manager at a life-insurance company said three factors make it difficult to read market direction + first he said domestic interest rates are likely to stay at higher levels as increased anticipation of inflation followed rising consumer prices reported last week + second the dollar is showing persistent strength despite a slowdown in the u.s. economy shown by economic indicators + third oil prices have n't declined although supply has been increasing + the topic that attracted participants ' attention was mitsubishi estate 's purchase of N N of rockefeller center properties announced late monday in new york + mitsubishi estate ended the day at N up N + the gains also sparked buying interest in other real-estate companies traders said + <unk> realty & development rose N to N + <unk> real estate gained N to N + investor focus shifted quickly traders said + many of the <unk> winners turned out to be losers by afternoon + in other stock-market news the tokyo stock exchange said that for the week ended friday the balance of margin buying rose N billion yen $ N billion to N trillion yen $ N billion + the balance of short positions outstanding fell N billion yen to N billion yen + in london prices finished at intraday <unk> <unk> by a reassuring early performance on wall street and news that the british government will waive its golden share in auto maker jaguar + but trading was very <unk> as investment decision makers remain wary from gyrations and <unk> of recent weeks + volume has been <unk> said a dealer at a british brokerage concern + the market was dragged up by the <unk> of its neck by wall street and by market makers getting caught short + no one wants stock on their books + meanwhile the broad-based financial times 100-share index added N points to end at N while reaching its minimum of N a half hour into the session + at the close the narrower 30-share index was up N points to N + volume totaled a modest N million shares up from N million shares monday + the market also moved at early afternoon on news that jaguar shares were being temporarily suspended at N pence $ N each + secretary of state for trade and industry nicholas ridley said later in the day that the government would abolish its golden share in jaguar the luxury auto maker being <unk> by general motors and ford motor + the golden share dates from jaguar 's public offering in N and was designed to protect the company from takeover + the golden share was scheduled to expire at the beginning of + but although the golden share has been <unk> a hostile bidder for jaguar would still have to alter the british concern 's articles of association which ban <unk> of more than N N + jaguar shares closed at N pence up N pence on hefty turnover of N million shares + as the london trading session drew to a close the market was still listening to the parliamentary debate on the economy with new chancellor of the exchequer john major expected to clarify his approach to the british economy and currency issues + on the frankfurt stock exchange share prices closed higher in fairly thin trading as selective buying by foreigners helped <unk> prices + the dax index closed at N up from N + despite the modest gains traders said the market remains <unk> with investors remaining cautiously on the sidelines + contributing to the market 's reserved stance was the release later in the day of new data on the health of the u.s. economy in the form of the u.s. index of leading indicators + additionally the end of the month <unk> might have also played a minor role traders said + elsewhere share prices closed higher in amsterdam brussels milan and paris + prices were mixed in zurich and lower in stockholm + stocks closed higher in hong kong manila singapore sydney and wellington but were lower in seoul + taipei was closed for a holiday + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + french consumer prices rose N N in september from the previous month and were up N N from a year earlier according to definitive figures from the national statistics institute + the state agency 's figures confirm previous estimates and leave the index at N up from N in august and N a year earlier + the index is based on N equaling N + a breakdown showed that food prices were the most active part of growth with a rise of N N + an official linked the gain essentially to higher prices for beef and pork + he said summer drought problems that had hit several southern agricultural regions had stopped being a major source of price pressure in september + japan 's index of leading indicators rose to N in august above the so-called <unk> line of N for the first time since may the economic planning agency said + the leading index recovered from july 's revised level of N on strong performances in consumer <unk> and machinery orders among other factors according to an agency spokeswoman + the index is intended to measure future economic performance + a figure above N indicates the economy is likely to expand one below N indicates a <unk> may be ahead + metromedia co. said its metromedia long distance unit has been renamed <unk> long distance reflecting acquisitions from itt corp. which licenses its name to closely held metromedia + metromedia said its unit is the <unk> provider of long-distance communications service in the u.s. with projected N revenue of more than $ N million + metromedia headed by john w. <unk> has interests in telecommunications <unk> painting computer software restaurants and entertainment + south korean consumer prices rose N N in the first N months of this year matching the government 's target for the entire year according to the bank of korea and the economic planning board + according to reports released by the two government agencies domestic consumer and wholesale prices each rose by N N in october from the previous month + as a result consumer prices for the first N months of N surged by N N and wholesale prices by N N + the south korean government had been projecting a N N consumer price increase for the entire year + martin <unk> corp. said it won a $ N million contract from the u.s. postal service to manufacture and install automated <unk> machines + under terms of the three-year contract martin <unk> said it will make and install N of the new machines at N postal offices + the new machines are capable of <unk> by zip code up to N large flat mail pieces including magazines and <unk> an hour + thomas a. <unk> N years old formerly vice president west coast operations at this <unk> <unk> concern was named executive vice president and chief operating officer both newly created posts and a director filling a vacancy + <unk> said it anticipates naming mr. <unk> to succeed richard f. <unk> N as president and chief executive officer effective march N + mr. <unk> will remain a <unk> board member and will be a consultant to the company + yields on <unk> certificates of deposit dropped slightly in the week ended yesterday + the average yield on a six-month cd of $ N or less was N N compared with N N a week earlier + the average one-year <unk> cd was down to N N from N N according to banxquote money markets a new york information service that tracks cd yields + this week was <unk> for the cd market said <unk> mehl chairman of banxquote + the major banks have n't even reacted to sharp rises in the three-month treasury bill rates in the past two weeks + banks that adjusted payouts on cds in the most recent week made only <unk> moves he said + the cd trend runs counter to the direction of short-term interest rates at the treasury bill auction monday + the average six-month bill was sold with a yield of N N up from N N + the average three-month issue rose to N N from N N + typically banks offer cd yields higher than those on treasury bills which are considered the <unk> short-term investments banks need a competitive edge to sell their products + but when market interest rates move up rapidly increases in bank cd yields sometimes lag + most yields on short-term jumbo cds those with denominations over $ N also moved in the opposite direction of treasury bill yields + the average six-month yield on a jumbo cd was at N N down from N N banxquote said + for longer-term cds yields were up + the average two-year and five-year <unk> were up N of a percentage point to N N and N N respectively + however cds sold through major broker-dealer networks were up slightly almost across the board + the average six-month cd in that category added N percentage point to N N for example + mr. mehl attributed the rise specifically to the treasury bill increase + among the major banks surveyed by banxquote in six regions of the country N N is the highest yield available + it is offered by the flagship banks of new york 's manufacturers hanover corp. in the one-year maturity only + the yield is offered across a range of maturities at san francisco 's bankamerica corp. and wells fargo & co + just two weeks ago bankamerica 's yields in many of those maturities was N N + still on average the major california banks have the highest yields on cds according to banxquote + the average yield there on six-month issues is N N + i had to reach back to french N when the <unk> <unk> <unk> <unk> over my shoulder during the coffee phase of dinner and asked whether i wanted to ride in a <unk> + i was a last-minute read <unk> <unk> at a french journalism convention and so far the <unk> had been taken up entirely by eating drinking smoking sleeping and drinking + the man with the <unk> represented a <unk> attempt to introduce a bit of <unk> <unk> into our <unk> + but as the french <unk> a <unk> state of <unk> when it comes to athletics try finding a <unk> machine in paris my fellow <unk> were having none of it + the <unk> at my table simply <unk> more <unk> and <unk> at the suggestion of <unk> a perfectly good saturday morning to go <unk> or even <unk> ballooning to you the brothers <unk> french of course were the world 's first <unk> <unk> + back in the u.s.a. this kind of <unk> <unk> activity wins <unk> <unk> responses + as in you went ballooning + in france + americans it seems have followed malcolm <unk> 's <unk> lead and taken to ballooning in a <unk> way + during the past N years the number of <unk> those who have passed a federal aviation authority <unk> test have swelled from a couple hundred to several thousand with some estimates running as high as N + some N balloon shows are held annually in the u.s. including the world 's largest <unk> of <unk> <unk> <unk> the <unk> <unk> international balloon <unk> that attracts some N enthusiasts and more than N <unk> some of which are <unk> <unk> to resemble <unk> <unk> <unk> or a <unk> <unk> + the <unk> balloon was denied official entry status this year + but in <unk> a gray <unk> river town adjacent to france 's <unk> mountain region none of these <unk> <unk> for things <unk> was evident + ballooning at the de <unk> hour of N a.m. held all the attraction for most people of <unk> <unk> work + feeling the <unk> of a culture <unk> i promptly signed up + the first thing anybody will tell you about ballooning is that it requires zip in the way of athletic <unk> or even a measure of <unk> + so long as you do n't look down + they will also tell you that even if you hate heights you can still balloon + i still say do n't look down + at least not when you are <unk> + what they wo n't tell you is not to go <unk> in anything you do n't want to get <unk> + i 'm not referring to the traditional champagne <unk> during the <unk> <unk> + i 'm talking about landing in a <unk> + in a <unk> <unk> basket + with a pilot who speaks no english + to <unk> my <unk> <unk> and <unk> are referred to as <unk> began at <unk> on a <unk> <unk> and ended at noon in a <unk> field + balloon flights almost always occur at <unk> or <unk> when the <unk> are <unk> + in between came lots of coffee drinking while watching the <unk> <unk> and lots of standing around deciding who would fly in what balloon and in what order the baskets hold no more than four passengers + when it was n't my turn in the balloon i followed its progress from the chase car listening to the driver <unk> into a <unk> + after long <unk> of this <unk> ground activity came N or so lovely minutes of <unk> above the <unk> watching the silver <unk> rise off the river and the french <unk> <unk> about the fields + it 's hard not to feel that god 's in his <unk> with this kind of <unk> view of the world even if your <unk> in silly <unk> <unk> kept pointing out how <unk> it all was + eventually little french farmers and their little french <unk> came out of their stone houses and put their hands above their tiny eyes and <unk> at us + no wonder + we were coming down straight into their <unk> + see the other rule of <unk> about ballooning is that you ca n't steer + and neither can your pilot + you can go only up or down by heating the balloon 's air with a propane <unk> which does make the top of your head feel hot and ride the air <unk> + which makes the chase car necessary + most <unk> seldom go higher than N feet and most average a <unk> N miles an hour + when the balloon is <unk> along at a steady <unk> there is little sense of motion + only when one is <unk> or in our case <unk> a <unk> <unk> <unk> does one feel well <unk> in a <unk> basket + what 's he doing <unk> my companion who was the only other <unk> member of the convention and whose <unk> were white + attention <unk> our pilot as our basket plunged into the <unk> + you bet attention i <unk> back leaping <unk> the propane tanks i 'm wearing <unk> <unk> + our pilot simply <unk> fired up the <unk> and with another blast of <unk> lifted us oh a good <unk> above the water level + we <unk> along for a few feet before he plunged us into the drink again + eventually we came to rest in a <unk> patch of field where we had the <unk> pleasure of scrambling out of the basket into the <unk> while the french half of our ballooning tag team scrambled in + i looked at my watch + barely <unk> <unk> + back in the chase car we drove around some more got stuck in a <unk> <unk> the aid of a local farmer to get out the <unk> <unk> and pull us out of the <unk> + we finally <unk> with our balloon which had come to rest on a <unk> road amid a <unk> of <unk> who watched us <unk> our craft another <unk> of <unk> activity that included the precision routine of <unk> the balloon to the ground <unk> all the air out of it rolling it up and <unk> it and the basket into the <unk> + it was the most exercise we 'd had all morning and it was followed by our driving immediately to the <unk> <unk> hole + this meant returning to the golf course where we watched a few french <unk> <unk> the first <unk> while we sat under <unk> <unk> me nursing an <unk> and my <unk> + a whole morning of ballooning and i had been off the ground barely N minutes + still i figured the event 's <unk> back in the u.s.a. was near <unk> + as for the ride back to camp our pilot and all the other <unk> passengers <unk> into the chase car + my american companion and i were left to ride <unk> in the <unk> basket + as we <unk> by a <unk> <unk> i could n't resist <unk> up on my <unk> <unk> and <unk> + ms. de <unk> is a free-lance writer + treasury undersecretary david mulford defended the treasury 's efforts this fall to drive down the value of the dollar saying it helped minimize damage from the 190-point drop in the stock market oct. N + <unk> before a house subcommittee mr. mulford said that if the treasury had n't intervened in foreign-exchange markets in september and early october to reduce the dollar 's value the plunge in the stock market might have provoked a steep fall in the currency that might have <unk> financial markets + mr. mulford responding to critics of intervention also said intervention is highly visible is taken seriously by financial markets and works better than was recognized some time ago + differences between the treasury and the federal reserve on the <unk> of intervention to help restrain the dollar <unk> at the hearing + fed vice chairman manuel johnson who had <unk> from the treasury 's policy told lawmakers i became convinced about what looked to me like an attempt to push the dollar down against the fundamentals in the market + intervention he added is useful only to smooth <unk> markets not to fundamentally influence the dollar 's value + rep. john <unk> d. n.y said mr. johnson refused to testify jointly with mr. mulford and instead asked to appear after the treasury official had completed his testimony + a fed spokesman denied mr. <unk> 's statement + mr. mulford said reports of tension between the treasury and fed have been <unk> insisting that they involved <unk> + mr. johnson also said that in the scheme of things these things are minor + on other matters mr. mulford said west germany is contributing to imbalances in the world economy because of its success as an exporter + the solution is stronger domestic growth in germany he said + but because the growth of the german economy has been stronger than expected mr. mulford said it 's difficult for the u.s. to argue that germany ought to adopt more <unk> monetary and fiscal policies + germany 's trade surplus is largely with other european countries rather than with the u.s. mr. mulford acknowledged + but nonetheless u.s. companies might be more successful in european markets if not for the german export push he said + the board increased by one to N members + in the past year one inside director resigned while three others retired + some u.s. allies are complaining that president bush is pushing <unk> talks too quickly creating a risk that negotiators will make errors that could affect the security of western europe for years + concerns about the pace of the vienna talks which are aimed at the destruction of some N weapons as well as major reductions and <unk> of troops in central europe also are being registered at the pentagon + mr. bush has called for an agreement by next september at the latest + but some american defense officials believe the north atlantic treaty organization should take more time to examine the long-term implications of the options being considered + for one thing pentagon officials who asked not to be identified worry that the u.s. will have a much tougher time <unk> europeans to keep some <unk> nuclear weapons on their soil once soviet <unk> forces are <unk> out + at the same time they contend that a reduction of nato forces under a treaty will increase the possibility of a conventional soviet attack unless the west retains a <unk> force of nuclear weapons in europe + allies concerned about the deadline include the british french and smaller nato allies some of whom do n't have adequate staffs to provide quick answers to the questions being raised by what generally are considered the most complex arms-control talks ever attempted + so far no ally has complained openly preserving the impression that nato is in line with the bush position that a quick agreement bringing soviet conventional forces down to parity with nato is the west 's top bargaining priority + but even though nato negotiators have only N months left under the bush timetable they are still <unk> over such seemingly fundamental questions as what is a tank + five of the six categories of weapons under negotiation have n't even been defined + tanks currently are defined as <unk> vehicles weighing N tons or more that carry large guns + the soviets complicated the issue by offering to include light tanks which are as light as N tons + <unk> a. <unk> the chief soviet negotiator in the <unk> talks argued that this would mean the soviets would have to destroy some N tanks while the u.s. would lose none because it has no light tanks in europe + but the issue is <unk> than it seems + france britain and italy all have light tanks they would like to keep out of the talks + and some u.s. army analysts worry that the proposed soviet <unk> is aimed at blocking the u.s. from developing lighter more <unk> high-technology tanks + <unk> combat aircraft is even tougher + the soviets insisted that aircraft be brought into the talks then argued for <unk> some N russian planes because they are solely defensive + nato has n't <unk> from its insistence that any <unk> plane has offensive capability + the dispute over that issue according to one u.s. official is a potential treaty <unk> and only president bush and soviet leader mikhail gorbachev may be able to resolve it + accounting problems raise more <unk> issues + greece and turkey for example are suspected of <unk> their <unk> in hopes that they can emerge from the <unk> treaty with large remaining forces to deter each other + other nations are n't sure how many weapons they have in their own <unk> + it 's just going to be sloppy both on our side and theirs the warsaw pact 's says one nato analyst + so far neither the bush administration nor arms-control experts in congress seem moved by arguments that these problems may take more time to <unk> out than president bush has allowed + they argue that the bigger danger would be that the west would delay action so long that the soviets might back away from the current <unk> attitude + so what if you miss N tanks somewhere asks rep. norman <unk> d. wash. a member of the house group that visited the talks in vienna + the bottom line is that if we can get that warsaw pact <unk> brought down to parity we ought to keep pressing ahead as quickly as possible + i worry more about things becoming so unraveled on the other side that they might become unable to negotiate + international lease finance corp. announced a leasing contract with charter carrier american trans air inc. in a transaction involving six boeing co. <unk> + the value of the jets including <unk> is in excess of $ N million + two of the <unk> are new aircraft to be delivered to american trans air the main subsidiary of <unk> inc. in december N and january N + four of the planes were purchased by international lease from singapore airlines in a previously announced transaction + delivery of the first aircraft is set for early november a second for december and two for april N + norway 's unemployment rate for october was N N unchanged from september but up from N N in the same month last year + the figure <unk> a record number employed by extraordinary government work programs the labor <unk> announced tuesday + including those in the state programs there were N <unk> or about N N of the work force without permanent employment in october up from september 's N + the number of people registered as jobless at the end of october declined by N from september to N + those employed in <unk> special programs increased by N to N in the same period the <unk> said + in october N there were N fewer employed by government programs + coca-cola co. aiming to boost soft-drink volume in singapore said it is discussing a joint venture with fraser & <unk> ltd. its bottling franchisee in that country + the venture would be the latest in coke 's rapid expansion of overseas investment + so far this year it has put nearly $ N million into bottling operations in australia new zealand and france + the move also reflects coke 's eagerness to have a hand in developing the soft-drink markets in pacific basin countries + aside from europe the pacific division is where coke will be focusing much of its attention for years to come + that 's because when coke looks to the pacific area it sees an economic and <unk> gold mine + in countries such as taiwan south korea and singapore economies are growing resulting in a rise in disposable income that consumers can use for soft drinks + and unlike europe and the u.s. where <unk> are aging the pacific basin countries have growing <unk> of <unk> the heaviest consumers of coca-cola and other <unk> + a coca-cola spokesman said it is too early to say how the joint venture would be structured or how much the company would invest in the transaction + in the past however coke has typically taken a minority stake in such ventures + by acquiring stakes in bottling companies in the u.s. and overseas coke has been able to improve <unk> ' efficiency and production and in some cases marketing + coke has <unk> to increase its control when results were sluggish in a given country + that does n't appear to be the case in singapore a country of about three million people with a relatively high soft-drink consumption rate a key indicator of coke 's success in a market + in singapore <unk> consumption is about one-third that of the u.s. + and combining fraser & <unk> 's own soft drinks with coca-cola 's gives the singapore company more than half the share of the soda market there coke said + fraser & <unk> which also has interests in packaging beer and dairy products holds the coke licenses for malaysia and <unk> where <unk> consumption is n't as high as in singapore + coke could be interested in more quickly developing some of the <unk> potential in those markets + a coke spokesman said he could n't say whether that is the direction of the talks + coke said the joint-venture arrangement which needs approval from both companies ' boards should be completed early next year + american brands inc. old greenwich conn. said it increased its quarterly N N to N cents a share from N cents payable dec. N to stock of record nov. N + the increase follows the company 's report of strong earnings for the third quarter and reflects what american brands called its tradition of sharing earnings growth with shareholders + american brands is a consumer products company with core businesses in tobacco <unk> spirits and life insurance + as of sept. N american brands had N million shares outstanding + giovanni agnelli & co. announced a transaction that will strengthen its indirect control of fiat s.p a. and will admit prince <unk> aga khan as its first <unk> shareholder + giovanni agnelli a limited partnership that is the master holding company for fiat 's agnelli family owns approximately N N of the shares in <unk> <unk> <unk> which in turn owns approximately N N of fiat italy 's biggest private-sector industrial group + the company said maria sole agnelli <unk> sister of fiat chairman giovanni agnelli agreed to trade her shares in ifi for new ordinary shares in the limited partnership which will give her control of N N of giovanni agnelli & co + the aga khan meanwhile agreed to trade some of his stake in <unk> <unk> s.a. another agnelli family company for N N of giovanni agnelli & co. 's capital + his new stake would be in the form of preferred shares which receive higher dividends but have voting rights only in extraordinary shareholders <unk> + the aga khan owns N N of <unk> 's capital while ifi owns N N + as a result of the transaction which is expected to be approved at a shareholders meeting nov. N giovanni agnelli & co. will control N N of ifi 's ordinary shares + its capital will also be raised to N billion lire $ N million from the current N billion lire + ifi also has <unk> preferred shares which are quoted on the milan stock exchange + the value of the two transactions was n't disclosed but an ifi spokesman said no cash would change hands + the move <unk> the existing links between the <unk> and the aga khan the head of the world 's <unk> <unk> who is a longtime family friend and frequently goes sailing with mr. agnelli + mr. agnelli and the aga khan also have some business ties and a spokesman for the agnelli company did n't rule out that the current agreement could lead to further collaboration + for instance <unk> earlier this year bought an N N stake in <unk> the aga khan 's airline which flies between italy and <unk> + giovanni agnelli & co. which was formed in january N as a way of keeping the <unk> ' controlling stake in fiat together despite an <unk> family tree has been playing a more active role in the agnelli group of late + it raised financing of N billion lire for the purchase this summer by another <unk> group of the food concern <unk> s.p a. by selling a chunk of its ifi shares to <unk> s.p a. + <unk> said during the weekend that it agreed to sell the shares back to giovanni agnelli for N billion lire + your oct. N page-one article on people riding so-called <unk> on railroad tracks was a <unk> to your readers + it unfortunately encourages others to engage in a highly dangerous and illegal activity that only a very few are doing now + and it <unk> such activities in a <unk> <unk> fashion with total <unk> to common sense and public safety + saul <unk> + vice president + public affairs + <unk> + mci communications corp. said it received a three-year contract valued at more than $ N million to provide network credit-card and other telecommunications services to drexel burnham lambert inc + congressional democrats and the bush administration agreed on a compromise minimum-wage bill opening the way for the first <unk> boost in more than nine years + the agreement ended a long <unk> between the congressional leaders and the white house over the wage issue + president bush in june vetoed a measure passed by congress and said he would n't accept any minimum-wage rise that went beyond limits he set early in this year 's debate on the issue + the compromise was a somewhat <unk> version of what the white house had said it would accept + under the agreement with the house and senate leaders the minimum wage would rise from the current $ N an hour to $ N an hour by april N + employers could also pay a <unk> training wage for N days to new workers who are up to N years old and then for another N days if the company institutes a specific training program for the newcomers + white house officials were <unk> that the compromise includes the concept of a training wage which mr. bush has fought for throughout the year + for the first time in history we have a training wage that will be part of the nation 's labor laws said roger porter assistant to the president for economic and domestic policy + white house aides said that although they made a small compromise on the length of a training wage the final minimum-wage increase will meet the standards set by mr. bush + the bill vetoed by the president in june which the house failed to override would have lifted the minimum wage to $ N an hour by late N with a training wage for up to two months generally for a worker 's first job + mr. bush had been holding out for a bill boosting the wage floor to $ N an hour by the end of N coupled with a six-month training wage for workers newly hired by any employer + under the compromise the $ N level would be reached nine months earlier while the training <unk> would be shorter unless it is tied to a training plan + democrats argued that the training wage was a way of allowing employers to pay less than the minimum wage while new workers need far less than six months to be trained for their jobs + democrats had been negotiating with some republican congressional leaders on a compromise lately + with congressional elections next year gop leaders have worried about opposing a minimum-wage rise for <unk> workers at a time when congress is moving toward a capital-gains tax cut that would directly benefit <unk> taxpayers + republicans have been <unk> the white house to compromise on the wage issue + in the senate edward kennedy d. mass. chairman of the labor committee and pete <unk> r. <unk> ranking minority member of the budget committee have been working on a compromise and their <unk> showed that the senate appeared to be heading toward enough strength to override another bush veto a democratic staff official said + the house is scheduled to vote this week on the compromise as a substitute to a new democratic bill itself <unk> down from last spring 's version + the senate will probably vote not long afterward + some democrats thought they might have <unk> too much + rep. austin murphy d. pa. chairman of the house labor standards subcommittee said they might have done better if we 'd held their feet to the fire + mr. kennedy suggested democrats yielded a great deal on the size of the increase but he cited concessions from the white house on the training wage which he said make it less harsh + with only <unk> to <unk> eligible N N of workers getting less than $ N an hour who are adults wo n't be subject to the training wage he said + the <unk> which previously opposed the administration 's <unk> idea said the compromise has adequate <unk> so the youth are not <unk> and older workers are not <unk> + gerald f. <unk> contributed to this article + moody 's investors service inc. said it lowered the ratings on about $ N billion of houston lighting & power co. 's securities because of the company 's low levels of interest coverage and internal cash generation + houston lighting is a unit of houston industries inc. a utility holding company in houston + downgraded by moody 's were houston lighting 's <unk> bonds and secured <unk> bonds to single-a-3 from single-a-2 unsecured <unk> bonds to <unk> from single-a-3 preferred stock to single-a-3 from single-a-2 a shelf registration for preferred stock to a preliminary rating of single-a-3 from a preliminary rating of single-a-2 two shelf <unk> for collateralized debt securities to a preliminary rating of single-a-3 from a preliminary rating of single-a-2 and the unit 's rating for commercial paper to <unk> from <unk> + moody 's said houston lighting 's current situation has some positive aspects including managing very well the construction and commercial operation risks of units N and N of the south texas project nuclear power plant + capital requirements will be declining and no new generating facilities will be required for several years moody 's said + scott c. smith formerly vice president finance and chief financial officer of this media concern was named senior vice president + mr. smith N retains the title of chief financial officer + armstrong world industries inc. agreed in principle to sell its carpet operations to shaw industries inc + the price was n't disclosed but one analyst estimated that it was $ N million + armstrong which has faced a takeover threat from the <unk> family of canada since july said that <unk> of the carpet business would improve total financial performance + the move also would allow the company to concentrate on core businesses which include ceramic <unk> floor <unk> and furniture + moreover such a sale could help armstrong <unk> its investors and deter the <unk> who own a N N stake in the lancaster pa. company + analysts expect armstrong to use proceeds of the sale to reduce debt buy back stock or perhaps finance an acquisition + the carpet division had N sales of $ N million or almost N N of armstrong 's $ N billion total revenue + the company has been manufacturing carpet since N + recently it upgraded its plants so that it could make <unk> products with higher quality <unk> + for the past year or two the carpet division 's operating profit margins have <unk> around N N high by industry standards but disappointing compared with the N N to N N margins for two of armstrong 's chief businesses <unk> and building products + analysts hailed the planned transaction as being beneficial to armstrong and shaw the market leader in the u.s. carpet industry with an estimated N N to N N share + shaw based in <unk> ga. has annual sales of about $ N billion and has economies of scale and lower <unk> costs that are expected to boost the profitability of armstrong 's brands sold under the armstrong and <unk> names + yesterday in composite trading on the new york stock exchange shaw 's shares closed ex-dividend at $ N up $ N + armstrong 's shares also listed on the big board closed at $ N up N cents + yesterday armstrong reported flat earnings for the third quarter and nine months <unk> by the stock <unk> of an employee stock ownership plan adopted earlier this year + for the quarter earnings were $ N million or N cents a share including a one-time gain of $ N million + in the year-ago quarter earnings were $ N million or N cents a share + yesterday armstrong announced an agreement to sell its small applied color systems unit to a subsidiary of the swiss company <unk> <unk> ltd + the price was n't disclosed + armstrong expects to close the sale of the color unit in late november and the carpet sale in december with the gains to be applied to fourth quarter or first-quarter results + the government 's primary <unk> gauge rose a slight N N in september but economists said the report offered little new information on the degree to which the u.s. economy is slowing + the small increase in the index of leading indicators which had climbed N N in august but was unchanged in july does lend support to the view that the economy has slowed <unk> + however it does n't give much of a clue as to whether a recession is on the horizon + i do n't think it provides much new information on the economy said richard <unk> economist at dean witter reynolds inc + so far this year the index of leading indicators has risen in four months fallen in four months and remained unchanged in the other month + in another report yesterday the commerce department said sales of new single-family houses plunged N N in september to an annual rate of N from N in august + the declines were particularly <unk> in the northeast and in the south where hurricane hugo was a factor + although september 's weakness followed two strong months for home sales the decline supports other indications that the drop in mortgage rates earlier this year has had only a limited beneficial effect on the housing market + the september drop was the largest since a N N drop in january N but monthly changes in this measure are even less <unk> than those in other economic indicators + because the figures are based on a small sample the department said it is N N confident only that new-home sales fell somewhere between N N and N N during the month + the department also said it takes four months to establish a trend + so far this year N newly built homes have been sold down N N from the like months of N + the index of leading indicators got a major boost in september from a surge in consumer expectations as measured by the university of michigan + this measure had dropped sharply in august + the commerce department said that as a result of a new adjustment to the formula used to calculate the index the influence of this component has been reduced + of the N components to the index only three others rose in september the money supply the length of the average work week and stock prices + several components that track the health of the manufacturing sector of the economy turned down in september + these include new orders for manufactured consumer goods lead times on vendor deliveries orders for new plant and equipment and backlogs of orders for durable goods + meanwhile the national association of manufacturers said yesterday a recent poll of N executives on its board found that N N do n't expect a recession to occur until N or later + the remainder expect a downturn to begin sometime in + although manufacturers often are quick to call for lower interest rates N N of the executives said they would prefer that the fed keep <unk> as its top priority even if that means higher rates + the other N N said the fed ought to worry less about inflation and bring interest rates down + all the figures are adjusted to remove usual seasonal patterns + here are the net contributions of the components of the commerce department 's index of leading indicators + after various adjustments they produced a N N rise in the index for august and a N N rise for september + september and the change from august are from N in the previous month + boston edison co. said it will take a previously reported $ N million charge against earnings in the fourth quarter + the charge resulted from a settlement approved yesterday by the massachusetts department of public utilities + as expected the settlement limits rate increases for three years and ties future charges to customers for operation of the troubled <unk> nuclear power station to that plant 's performance + in its order the state regulatory agency said the company must be held <unk> for the mistakes made in the management of the plant 's operation + <unk> had been closed for N months + the average interest rate rose to N N at citicorp 's $ N million weekly auction of <unk> commercial paper or corporate <unk> from N N at last week 's sale + bids totaling $ N million were submitted + accepted bids ranged from N N to N N + citicorp also said that the average rate rose to N N at its $ N million auction of <unk> commercial paper from N N at last week 's sale + bids totaling $ N million were submitted + accepted bids ranged from N N to N N + the bank holding company will auction another $ N million in each maturity next tuesday + an <unk> novelist writing a <unk> about <unk> <unk> might <unk> a clifford stoll but it 's unlikely + it 's also unnecessary + <unk> <unk> clifford stoll is a real person or as he might <unk> put it a <unk> person + he is N an <unk> with impressive credentials and something of a <unk> at making computers do his bidding + he once described himself as a berkeley <unk> and played the role well <unk> <unk> jeans a <unk> of long hair and rejection of all things conventional including for a time at least formal marriage to his <unk> <unk> matthews + he also is an entertaining writer combining <unk> and <unk> with <unk> detail and <unk> <unk> of how computers work + in the <unk> 's egg <unk> N pages $ N he <unk> a remarkable tale of his efforts over N months to catch a computer spy + the result last spring was the arrest by west german authorities of five young west germans accused of stealing information from computers in the u.s. and europe and selling it to the soviet kgb + one of them <unk> <unk> hess of <unk> allegedly used the international telecommunications network to break into more than N <unk> computers in the u.s. searching for secrets + he probably did n't <unk> any <unk> files but the kgb in east berlin was willing to pay two of his associates peter carl and <unk> <unk> $ N for some of the material hess collected + they promised yet more for really good stuff + mr. stoll draws his title from the <unk> 's habit of laying eggs in the <unk> of other birds making them <unk> parents + the computer spy had discovered that a popular <unk> mail program called <unk> could do <unk> with the widely used unix operating system created by at&t + using <unk> the spy could substitute a <unk> <unk> program for the one that routinely <unk> up the unix system every five minutes + once his <unk> 's egg was laid he could enter unix and become a <unk> with access to everything + mr. stoll was <unk> the <unk> at the <unk> <unk> of the lawrence berkeley laboratory in N when his grant ran low and he was asked to switch to helping run the lab 's computers + he discovered a <unk> <unk> in the charges made to various departments for computer time and <unk> it to a user named hunter who had no valid billing address + mr. stoll suspected the <unk> was one of those <unk> students who has fun breaking into computers + but after much tracking it became evident to mr. stoll through various clues that the hacker was not on the berkeley campus or even in california + finding him became an <unk> for mr. stoll + he made a midnight <unk> of all the printers he could lay hands on so that he could monitor all the telephone lines coming into the lab 's computers + after <unk> that the hacker had taken over the <unk> account of a legitimate user named joe <unk> he <unk> up an alarm system including a portable <unk> to alert him when <unk> came on the line + some nights he <unk> under his desk + his boss complained about <unk> of other chores + the hacker was <unk> over the berkeley files but also using berkeley and other easily accessible computers as stepping stones to the network of computers used by the military and national security agencies + the white <unk> missile range and cia contractor <unk> inc. were among the targets + when the hacker moved mr. stoll moved too calling up other systems managers to alert them but keeping his own system open to avoid <unk> <unk> + sometimes if the hacker seemed to be into a sensitive file he would drag his <unk> across the terminal to create <unk> or slow the system down to <unk> his <unk> + the fbi initially showed little interest and he had the impression other federal security agencies were <unk> up in legal red tape + the cia told him it does not do domestic <unk> + one <unk> a lot from this book or seems to about <unk> federal bureaucracy + seems to because it 's possible that the cia and the national security agency were more interested than they let on to mr. stoll + finally he got help + <unk> is a major network linking computers + one of its international specialists steve white took a quick interest in mr. stoll 's hunt ultimately <unk> the hacker to west germany + the west germans then took over and finally found <unk> hess + eventually mr. stoll was invited to both the cia and <unk> to brief <unk> officers on computer theft + he <unk> the humor of his <unk> appearance among these <unk> <unk> + back in berkeley he was <unk> <unk> by a <unk> lady friend for <unk> with such people + he became angry in return + he had developed a <unk> for the hacker and a <unk> appreciation of the federal <unk> who make national security their business + at several different levels it 's a <unk> tale + mr. <unk> is deputy editor of the journal + mips computer systems inc. today will unveil a new <unk> computer that will compete with more expensive machines from companies such as sun microsystems inc. and digital equipment corp + the closely held sunnyvale calif. company also will announce an agreement to supply computers to control data corp. which will sell mips machines under its own label + the new mips machine called the <unk> will cost $ N for a basic system + the computer processes N million instructions per second and uses only one central processing chip unlike many rival machines using several processors + the machine employs reduced <unk> computing or risc technology + at that price an analyst familiar with the machine said the computer offers up to N times the performance of similar machines + in the price range it 's a <unk> <unk> product said <unk> <unk> an analyst at the <unk> firm <unk> + the machine is part of an effort by mips to establish itself as a supplier of computers not just of <unk> technology + mips also wants to wedge into markets other than traditional risc applications such as engineering mips said the new machine will also be used by businesses and for communications + this clearly demonstrates that mips is a systems company rather than just a chip company said mips vice president john <unk> + the control data deal is a <unk> for mips because it gives the the <unk> company one more ally as it <unk> more established electronic concerns such as sun hewlett-packard co. motorola inc. and intel corp. for the emerging market for risc machines + risc technology speeds up a computer by <unk> the internal software + for mips which expects revenue of $ N million this year <unk> allies such as control data are essential to attract software developers to the company 's risc architecture + the thing it says about mips is that they 're on a roll right now said ms. <unk> at <unk> + they 're getting some major wins she added + last month for example mips agreed to supply its computers to <unk> computer ag of west germany and france 's <unk> bull + sony corp. tandem computers inc. and digital equipment have agreed to sell mips computers and companies such as japan 's nec corp. and west germany 's siemens a.g. have agreed to make mips chips under license + today 's agreement gives control data a machine to compete against digital and other <unk> computer makers said john <unk> a <unk> analyst at <unk> group inc. of boston + the machine is essentially a mainframe computer he said + suddenly <unk> control data has a competitive product to fight back against the <unk> a machine digital announced last month he added + control data based in minneapolis minn. expects its sales of mips systems including the new <unk> to amount to more than $ N million by the end of N mips said + <unk> bull and others will also sell versions of the machine said mips president robert miller + mips will start shipping its new machine in the first quarter of N he said + the machine uses a single <unk> which makes it easier to program than competing machines using several processors + the computer can process N million calculations called <unk> operations every second + the machine can run software written for other mips computers the company said + another fight is brewing between congress and the bush administration over how to pay for the savings-and-loan bailout without adding to the federal budget deficit + in a hearing before the house ways and means committee the general accounting office and the congressional budget office which both are arms of congress advised the new s&l bailout agency to abandon plans to raise temporary working capital through debt issued from an agency that would n't be counted on the federal budget + officials of the resolution trust corp. have said privately that such a plan was the most likely alternative to raise short-term cash for the bailout + instead the <unk> and the congressional budget office said the rtc should consider using treasury debt which is less expensive and subject to oversight by congress + the spending could be <unk> from meeting deficit-reduction targets in the gramm-rudman budget law + the rtc has projected that it will require between $ N billion to $ N billion in temporary working capital + the borrowing to raise these funds would be paid off as assets of sick thrifts are sold + the new s&l law allows the rtc to issue notes for as much as N N of the value of the assets it holds + but higher interest rates paid on <unk> debt could add billions to the bailout costs and would n't be subject to congressional scrutiny ways and means members argued + to allow this massive level of <unk> federal borrowing without prior congressional approval would be irresponsible said rep. <unk> stark d. calif. who has introduced a bill to limit the rtc 's authority to issue debt + the rtc will have to sell or merge hundreds of insolvent thrifts over the next three years + the new s&l bailout law allows $ N billion to be spent to sell or merge sick s&ls and their assets but that is a net cost + in the meantime the agency must raise cash to maintain assets such as real estate until they can be sold + then the short-term debt is paid off through the proceeds of selling the assets + david mullins assistant secretary of the treasury said that the working capital is necessary to reduce the final costs of the bailout by allowing the agency to sell savings and loans without their bad assets then hold the assets until they can be sold under favorable conditions + he said it has n't yet been determined how the rtc will raise the cash but the administration does n't want it to be included on the federal budget because it would <unk> the budget process by requiring either <unk> from gramm-rudman or big increases in the budget deficit + but the worst possibility would be raising no working capital he said + if working capital financing is not provided he said the rtc may have to slow s&l sales or dump acquired assets through fire sales + <unk> eastern corp. said it applied on behalf of two of its subsidiaries to the federal energy regulatory commission for permission to build a <unk> $ N million pipeline system from <unk> county okla. to independence miss + the natural gas pipeline concern said the N million cubic feet a day capacity pipeline would be built by a proposed joint venture between two <unk> eastern units texas eastern transmission corp. and <unk> gas co + texas eastern transmission will build and operate the system which will <unk> the <unk> basin with several interstate pipelines + now was that a quarter cup or a half cup + not a <unk> question unless you 're the <unk> <unk> of this city 's <unk> <unk> restaurant and you 've just lost your <unk> personal <unk> notebook + <unk> <unk> was listed among the top N restaurants in the world this year by <unk> magazine + the <unk> black <unk> <unk> with N years ' worth of <unk> held together by rubber <unk> was in <unk> <unk> shere 's <unk> when it was stolen from her house recently + the berkeley police do n't have any leads but doubt the crime was driven by a passion for <unk> + instead they figure the <unk> probably took money from ms. shere 's <unk> and discarded all the tips in the <unk> <unk> + <unk> <unk> whose founder alice waters is considered the inventor of the cooking style known as california <unk> and whose <unk> make reservations a month in advance has n't exactly <unk> <unk> to <unk> ice <unk> because of the theft + for one thing ms. shere can draw on her <unk> published by random house four years ago which is <unk> with <unk> for such <unk> as <unk> <unk> <unk> fool a <unk> <unk> made with crushed <unk> <unk> and <unk> <unk> a la <unk> + for another sympathetic fans have sent ms. shere copies of her <unk> <unk> from magazines over the years + still the restaurant 's <unk> <unk> of <unk> <unk> it supposedly has n't repeated a <unk> since opening in N requires constant <unk> + and that puts added pressure on <unk> <unk> <unk> planners + we make what we know how to make says business manager richard <unk> + many in the bay area 's <unk> community express <unk> that ms. shere kept only one copy of such valuable notes but she has received moral support from baker 's dozen a group of california <unk> chefs that meets regularly to discuss issues like how to keep <unk> from <unk> and how <unk> eating habits affect butter <unk> + ms. shere has offered a $ N reward for the book 's return but figures she 'll have to <unk> many <unk> from <unk> + it 's an overwhelming job she says + there are so many possible <unk> when you consider how many things are made out of eggs and butter and milk + newport electronics inc. named a new slate of officers a move that follows replacement of the company 's five incumbent directors last week + milton b. hollander N years old was named chief executive officer succeeding barrett b. weekes + mr. hollander 's stamford <unk> high technology holding co. acquired most of its N N stake in newport in august + mr. hollander was named chairman last week succeeding mr. weekes who was among the ousted directors + the company has declined requests to discuss the changes but mr. weekes has said that mr. hollander wanted to have his own team + scott <unk> was named president and chief operating officer of u.s. operations titles that had been held by mr. weekes + mr. <unk> was vice president of the instrument and controls division of closely held <unk> engineering inc. another company controlled by mr. hollander + a company spokesman did n't know mr. <unk> 's age + james r. <unk> N vice president of newport 's european operations was named executive vice president and chief operating officer of european operations assuming some former duties of mr. weekes + arthur b. <unk> N an attorney was named secretary succeeding john virtue who was another of the ousted directors + <unk> corp. declared a 2-for-1 stock split + the wilmington mass. <unk> service company also boosted its quarterly dividend N N to three cents a share adjusted for the split + the dividend had been five cents a share + the split and quarterly dividend will be payable jan. N to stock of record nov. N the company said + the split will raise the number of shares outstanding to about N million + separately <unk> reported that net income rose N N to $ N million or N cents a share adjusted for the split for the fourth quarter ended aug. N + a year earlier <unk> earned $ N million or N cents a share adjusted for the split + sales rose to $ N million from $ N million + <unk> corp. said it completed the previously reported sale of approximately N acres of <unk> near <unk> calif. to closely held sierra pacific industries corp. <unk> calif. for $ N million + the lumber <unk> and <unk> concern said the transaction which includes a swap of other <unk> interests would result in a $ N million after-tax gain to be recorded in the fourth quarter + healthcare international inc. said it reached a <unk> standstill agreement with its healthvest affiliate calling for healthcare to pay healthvest $ N million right away and additional amounts in the future + under the agreement healthcare a manager of health-care facilities said it would pay healthvest $ N million in overdue rent and mortgage payments and repay $ N million in funds that healthvest advanced for construction work on facilities + in return healthvest agreed that it wo n't exercise its rights and <unk> against healthcare during the <unk> period + after the payment healthcare still will be $ N million in <unk> on rent and mortgage payments to healthvest a real estate investment trust whose portfolio consists largely of properties operated by healthcare + healthcare has given healthvest a N N note for that overdue amount to be repaid over three years + in addition healthcare agreed to make monthly rent and mortgage payments of $ N million to $ N million to healthvest during the standstill period to be paid when healthcare successfully <unk> asset sales + because healthcare actually owes healthvest $ N million in rent and mortgage payments each month the amount due above the amount paid will be added to the three-year note + the funds should help ease a cash <unk> at healthvest which has been unable to pay its debts because healthcare has n't made complete rent and mortgage payments since july + a spokesman said healthvest has paid two of the three banks it owed interest to in october and is in negotiations with the third bank + healthcare which has been in a severe liquidity <unk> said it is able to make the payments because it completed a transaction with <unk> rehabilitation group inc. in which <unk> purchased stock and warrants for $ N and <unk> healthcare $ N million + the loan is backed by healthcare 's N N stake in healthvest and interest in certain facilities + i was pleased to note that your oct. N centennial journal item recognized the money-fund concept as one of the significant events of the past century + actually about two years ago the journal listed the creation of the money fund as one of the N most significant events in the world of finance in the 20th century + but the reserve fund america 's first money fund was not named nor were the <unk> of the money-fund concept harry brown and myself + we <unk> telephone redemptions daily dividends total elimination of share certificates and the constant $ N <unk> pricing all of which were painfully thought out and not the result of some <unk> on the part of the sec + president + the reserve fund + the <unk> moment in the career of joseph f. o'kicki came as N local and state <unk> packed into his elegant <unk> courtroom here last year for his <unk> in as president judge of cambria county + baskets of <unk> and <unk> <unk> <unk> his bench + the local american <unk> color guard led the way + as the judge marched down the center <unk> in his flowing black <unk> he was <unk> by a <unk> fanfare + to many it was a <unk> more <unk> a king than a rural judge <unk> in the isolated foothills of the southern <unk> <unk> + but then judge o'kicki often behaved like a man who would be king and some say an arrogant and <unk> one + while his case may be extreme it reflects the <unk> of many small communities to <unk> judges + last march nine months after the judge 's <unk> the state attorney general 's office indicted him on a sweeping array of charges alleging more than N years of official <unk> in cambria county a depressed steel and mining community in western pennsylvania + the allegations ranging from theft and bribery to <unk> and <unk> <unk> a <unk> picture + according to testimony in a public <unk> <unk> report handed up to the state attorney general judge o'kicki <unk> cash from lawyers <unk> favorable loans from banks and <unk> local businesses for more than a decade + prosecutors in an indictment based on the grand jury 's report maintain that at various times since N he owned a secret and illegal interest in a beer <unk> <unk> hidden ownership interests in real estate that presented an alleged conflict of interest set up a <unk> corporation to buy a car and obtain insurance for his former girlfriend now his second wife and maintained N accounts in six banks in cambria county + in testimony recorded in the grand jury report court employees said the judge now N years old <unk> his secretaries made imperial demands on his staff and <unk> anyone who crossed him + <unk> claimed they were required to <unk> him to and from work <unk> his lawn <unk> his wood fix his car and even drop by his house to feed his two grown <unk> <unk> and <unk> + one former <unk> charged that the judge <unk> him by <unk> on a promise of a better paying job after <unk> a $ N bribe + some of the allegations are simply bizarre + two former secretaries told the grand jury they were summoned to the judge 's chambers on separate occasions to take <unk> only to find the judge in his <unk> underwear + one secretary testified that the judge once called her to his office while wearing nothing at all + the judge suspended from his bench pending his trial which began this week <unk> denies all the allegations against him calling them <unk> and <unk> political <unk> + he blames the indictment on local political <unk> <unk> with his aggressive efforts to clear the courthouse 's <unk> and a <unk> by state investigators and prosecutors angered by some of his rulings against them + i do n't know whose <unk> i 've stepped on says the judge + i 'll find out eventually who pushed the state police <unk> into action + even if only some of the allegations stand up however they provide ample testimony to the <unk> power of judges in rural communities + that power can sometimes be abused particularly since <unk> in smaller <unk> operate without many of the restraints that serve as <unk> measures in urban areas + lawyers and their clients who frequently bring business to a country courthouse can expect to appear before the same judge year after year + fear of <unk> that judge is pervasive says maurice <unk> founder and director of the rural justice center in <unk> <unk> a public interest group that <unk> rural justice issues + as a result says mr. <unk> lawyers think twice before appealing a judge 's ruling are reluctant to mount or even support challenges against him for re-election and are usually loath to file complaints that might <unk> a judge 's integrity + judge o'kicki a stern and <unk> man has been a <unk> in the local legal community for more than two decades + the son of an <unk> <unk> of <unk> <unk> he was raised in a small borough outside <unk> the cambria county seat and put himself through the university of pittsburgh law school + he <unk> near the top of his class serving on the school law review with richard thornburgh who went on to become governor of pennsylvania and now u.s. attorney general + it was also in law school that mr. o'kicki and his first wife had the first of seven daughters + he <unk> his first wife three years ago and married the daughter of his court clerk + last year pennsylvania supreme court justice john p. <unk> called mr. o'kicki one of the <unk> judges not only in pennsylvania but in the united states + clearly the judge has had his share of <unk> + after practicing law locally he was elected to his first 10-year term as judge in N in N he was effectively <unk> + six years ago judge o'kicki was voted president of the pennsylvania conference of state trial judges by the state 's N judges + he has been considered several times for appointments to federal district and appellate court <unk> in pennsylvania + and when he ran unsuccessfully for a state appellate court seat in N the pennsylvania bar association rated him one of the best available after <unk> local lawyers + he probably was the <unk> guy who ever sat on our bench says a former president of cambria county 's <unk> bar association who like most lawyers in cambria county refuses to talk about the judge publicly + he 's sharp as a <unk> + he could grasp an issue with the <unk> of an eye + for more than a decade virtually no one complained about judge o'kicki + what about those institutions that are supposed to be the <unk> of society the banks and the bar association wrote a columnist for the <unk> a newspaper in nearby <unk> shortly after the scandal became public + if only a banker or a lawyer had spoken out years ago the judicial process would n't be under the <unk> it is today + officials with the pennsylvania judicial inquiry and review board the arm of the state that <unk> judicial misconduct counter that they had no <unk> of anything <unk> in <unk> + nobody told us nobody called us says an official close to the case who asked not to be named + nobody had the <unk> to complain + certainly not the lawyers + <unk> attorney richard j. green jr. <unk> out $ N in loans to the judge over five years he said in testimony to the grand jury + the judge never made a <unk> of <unk> the money said mr. green + eventually mr. green testified he began <unk> out of his office rather than face the judge when he visited + when mr. green won a $ N verdict in a land <unk> case against the state in june N he says judge o'kicki unexpectedly awarded him an additional $ N + mr. green thought little of it he told the grand jury until the judge walked up to him after the courtroom had cleared and suggested a <unk> + do n't you think i ought to get a commission or part of your fee in this case mr. green said the judge asked him + <unk> mr. green never paid the money he testified + but he did n't complain to the state 's judicial inquiry and review board either saying later that he feared <unk> + mr. o'kicki said he will respond to mr. green 's <unk> at his trial + like most of cambria county 's lawyers and residents who had dealings with the judge mr. green declined to be interviewed for this article + and no one with a complaint about the judge would allow his name to be printed + i do n't have anything much to say and i think that 's what you 're going to find from everyone else you talk to up here says local attorney edward f. <unk> + says another lawyer the practice of law is a matter of <unk> one 's <unk> when you live in a small community + one had best not dance on top of a <unk> until the lid is <unk> tightly shut + the judge was considered <unk> <unk> and ambitious those who practiced before him say + he <unk> tea sweetened with <unk> from his <unk> leather chair at his bench while <unk> notes ordering <unk> to stop <unk> or to take off their hats in his courtroom + four years ago he jailed all nine members of the cambria county school board for several hours after they <unk> his order to extend the school year by several weeks to make up for time lost during a teachers ' strike + visitors in his chambers say he could cite precisely the years months weeks and days remaining until mandatory retirement would force aside the <unk> president judge giving judge o'kicki the seniority required to take over as the county 's top court administrator + the judge they say was fiercely proud of his <unk> and <unk> + my name is judge judge o'kicki told a car salesman in <unk> when he bought a new red <unk> <unk> in october N according to the <unk> report + the dealership <unk> recorded the sale under the name judge o'kicki + yet despite the judge 's imperial bearing no one ever had reason to suspect possible wrongdoing says john <unk> president of cambria county 's <unk> bar association + the <unk> of a judge his <unk> the way he handles people are not a basis for filing a complaint says mr. <unk> + until this came up and hit the press there was never any indication that he was doing anything wrong + state investigators dispute that view now particularly in light of the judge 's various business dealings in cambria county + the judge came under scrutiny in late N after the state attorney general 's office launched an unrelated investigation into corruption in cambria county + the inquiry soon focused on the judge + even his routine business transactions caused trouble according to the grand jury report + when the judge bought his new <unk> from james e. black <unk> in <unk> five years ago the dealership had certain <unk> about the judge 's reputation according to the <unk> report + the dealership took the extra step of having all the paper work for the transaction <unk> by <unk> 's local lender laurel bank + then as an additional <unk> the car dealership took the judge 's photograph as he stood next to his new car with sales papers in hand proof that he had received the loan documents + but when the judge received his payment book he <unk> the deal + there was no loan there is no loan there never shall be a loan the judge wrote the bank on his judicial <unk> according to the report + later the judge went a step <unk> + after laurel bank tried to <unk> the car a vice president asked him to intervene in an unrelated legal dispute involving a trust account + the judge wrote again + i find myself in an adversary relationship with laurel bank and i am not inclined to extend myself as far as any favors are concerned the judge wrote back in a letter attached to the grand jury 's report + perhaps if my personal matters can be resolved with laurel bank in the near future i may be inclined to reconsider your request + the judge now says it was unfortunate that he chose to write the letter but says there was certainly no intent to <unk> there + the bank <unk> + it <unk> the judge 's loan lowered its interest rate and accepted a <unk> that had n't originally been part of the deal a beat up N chevy <unk> the dealer had to repair before it could be <unk> + the incident was n't the only time the judge got special treatment from his local bank + two years later he wrote to complain that the interest he was paying on an unsecured $ N loan was absolutely onerous + paul l. kane laurel 's president at the time quickly responded + the bank he wrote back was immediately lowering the rate by N N as a <unk> to you + the judge says he ca n't discuss in detail how he will defend himself at his trial although he contends that if he were as corrupt as state prosecutors believe he would be far <unk> than he is + his <unk> <unk> and brick house outside of <unk> is up for sale to pay for his lawyers + the judge says he is confident he will return to his old bench + already he notes the N charges originally filed against him have been trimmed to N + most of the allegations no longer pending were ethics charges withdrawn by state prosecutors as part of a pre-trial agreement + the heart of the case official <unk> remains intact + if i lose i lose my position my career my pension my home and my investments says the judge + my god and i know i am correct and innocent + many thanks for alexander <unk> 's comic <unk> u.s. economy a house built on junk-bond sand viewpoint oct. N + the use of the <unk> construction practices in the soviet union as <unk> by the collapse of sand apartment blocks during the <unk> earthquake as a <unk> for the u.s. economic system was a <unk> example of mr. <unk> 's <unk> <unk> + i await his <unk> the economic and social <unk> of the san francisco bay area and the outstanding work of the local governments and the private charitable organizations there as <unk> for the <unk> of whatever failed system mr. <unk> now believes in + it should be a <unk> + william s. smith + as a money manager and a <unk> <unk> i was very disappointed to read in the premiere issue of garbage that the wall street journal uses N metric tons of newsprint each year but that only N N of it comes from recycled paper + by contrast the los angeles times for example uses N N recycled paper + with newspapers being the largest single component of solid waste in our <unk> and with our country <unk> with trash all sectors of our society and all types of businesses must become more responsible in our use and disposal of precious natural resources + the wall street journal is an excellent publication that i enjoy reading and must read daily + please make me and thousands of other readers more comfortable with our daily purchase of your newspaper by raising your environmental standards to your overall <unk> quality levels and increase your use of recycled paper + virginia <unk> <unk> + first american financial corp. declared a special dividend of one share of class b common stock for each share of class a common stock payable to holders of record on nov. N if the securities and exchange commission approves this as the effective date of the registration statement + shareholders of the santa ana calif. <unk> company approved the creation of this second class of stock which will be traded on the national over-the-counter market and which the company said would be used for acquisitions and other general corporate purposes + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + continental <unk> inc. + $ N million of senior subordinated debentures due nov. N N was priced at par to yield N N N + rated <unk> by moody 's investors service inc. and <unk> by standard & poor 's corp. the issue which is <unk> for five years will be sold through underwriters led by morgan stanley & co + beatrice co. + $ N million of notes due nov. N N was priced in a two-part offering through underwriters at salomon brothers inc + the size of the issue was scaled back from an originally planned $ N million + the first part consisting of $ N million of N N N senior subordinated reset notes was priced at N + the rate on the notes will be reset annually to give the issue a market value of N + however the maximum coupon at which the notes can be reset is N N N + the minimum coupon is N N N + the second part consisting of $ N million of senior subordinated floating-rate notes was priced at N N to float N N above the three-month london interbank offered rate + the initial coupon on the floating-rate notes will be N N + the issue is rated <unk> by moody 's and <unk> by s&p + new jersey wastewater treatment trust + $ N million two-part offering of bonds apparently was won by a merrill lynch capital markets group + the group 's bid for $ N million of wastewater treatment insured bonds series N a produced a N N true interest cost + the series N a bonds are insured and rated triple-a by moody 's and s&p + the group 's bid for $ N million of wastewater treatment bonds series N b produced a N N true interest cost + the series N b bonds are uninsured and rated double-a by moody 's and s&p + both the series N a and series N b bonds were priced to yield from N N in N to N N in N according to a merrill lynch official + <unk> county navigation district no. N texas + $ N million of pollution control revenue bonds houston lighting & power co project due oct. N N were tentatively priced by a goldman sachs & co. group at N N to yield N N with a coupon of N N N + interest on the bonds will be treated as a preference item in <unk> the federal alternative minimum tax that may be imposed on certain investors + the bonds are insured and rated triple-a by moody 's and s&p + federal home loan mortgage corp. + $ N million of remic mortgage securities is being offered in N classes by a morgan stanley group + the offering series N is backed by freddie mac N N securities + complete details were n't immediately available + <unk> mortgage funding corp. ii + $ N million issue of collateralized mortgage obligations is being offered in four classes by a morgan stanley group + the securities yield from N N to N N for a 30-year issue with an average life of N years + the N N yield represents a spread to the 20-year treasury of N percentage points + the collateral consists of collateralized whole loans with a weighted average coupon rate of N N and weighted average remaining term to maturity of N years + the issue is rated triple-a by s&p moody 's and <unk> investors service inc + the issue is N N to N N <unk> and N N of the loans are covered by a general electric pool policy covering losses of as much as N N of the original principal balance of the loans + j.c. penney co. + $ N million of <unk> master credit card trust asset-backed certificates series b with a final stated maturity of oct. N N was priced at N to yield N N with a coupon of N N + the certificates which have average life of N years were priced at N percentage points over the benchmark treasury 10-year note + rated triple-a by moody 's and s&p the issue will be sold through first boston corp + the issue is backed by a N N letter of credit from credit suisse + <unk> <unk> electric railway co japan + $ N million of bonds due nov. N N with equity-purchase warrants indicating a N N N coupon at par via nomura international ltd + each $ N bond carries one warrant exercisable from nov. N through nov. N N to buy company shares at an expected premium of N N N to the closing share price when terms are fixed tuesday + diesel <unk> co japan + $ N million of bonds due nov. N N with equity-purchase warrants indicating a N N N coupon at par via yamaichi international europe ltd + each $ N bond carries one warrant exercisable from nov. N through nov. N N to buy company shares at an expected premium of N N N to the closing share price when terms are fixed monday + <unk> electric power co japan + $ N million of N N N bonds due nov. N N priced at N N to yield N N N less full fees via nikko securities ltd + fees N N + monte <unk> <unk> di <unk> singapore branch italian parent via the law debenture trust corp. + N billion yen $ N million of N N bonds due feb. N N priced at N N via daiwa europe ltd + <unk> finland + N billion yen of N N bonds due nov. N N priced at N to yield N N via <unk> international + <unk> inc. said it acquired <unk> prof. dr. <unk> a german maker of scientific instruments + terms were n't disclosed + the <unk> mass. maker of scientific instruments and electronic parts said <unk> expects N sales of more than N million deutsche marks $ N million and employs about N people + <unk> is based in <unk> west germany and also has operations in belgium + john m. <unk> <unk> 's chairman and chief executive said the acquisition will extend <unk> 's core technologies strengthen its position in the european economic community and assure a strength and presence in the eastern european market + he said it especially will strengthen the company 's efforts in the rapidly growing field of <unk> instrumentation and in applied nuclear physics + separately <unk> said it sold most of its mason research institute subsidiary to <unk> sciences inc. a closely held biotechnology company based in <unk> mass + the sale for $ N million in cash and securities will leave <unk> with a N N stake in <unk> executives said + mason is the largest <unk> lab in new england with annual revenue of $ N million and N employees + mason serves commercial and government customers including the national institutes of health + the combined companies will become profitable by january N said james p. <unk> <unk> 's chairman and chief executive officer + the internal revenue service said it is willing to let the u.s. tax court decide how much oil man william herbert hunt will owe the government after his assets are liquidated + the surprise announcement came after the irs broke off negotiations with mr. hunt on a settlement of the one-time <unk> 's personal bankruptcy case + although the action <unk> one obstacle in the way of an overall settlement to the case it also means that mr. hunt could be stripped of virtually all of his assets if the tax court rules against him in a N case heard earlier this year in washington <unk> + the irs has been seeking more than $ N million in back taxes from mr. hunt + separately a federal judge hearing mr. hunt 's bankruptcy case yesterday turned down a proposed $ N million settlement between mr. hunt and minpeco s.a. another major creditor in the case + the <unk> minerals concern had been seeking a claim of $ N million against mr. hunt + in addition to turning down the compromise judge harold c. abramson said he would allow a claim of only $ N million + minpeco attorneys said they would appeal the decision to a federal district court + regarding mr. hunt 's taxes he and the irs have apparently agreed on a basic formula for <unk> his estate in which the irs would get N N of the proceeds from a <unk> trust and N N would go to other creditors + but they have been at odds over how much mr. hunt would owe the government after his assets are sold + the irs had demanded $ N million but mr. hunt would agree to no more than $ N million + <unk> <unk> iii a government lawyer warned that mr. hunt stood to lose certain oil and gas properties $ N in english <unk> a colorado <unk> and other assets he might have kept if he had settled with the irs + but they wanted to roll the <unk> and we 're going to let them mr. <unk> said + stephen <unk> mr. hunt 's attorney said his client welcomed the gamble + the tax court is n't expected to rule before early next year + japan has found another safe <unk> for its money u.s. home mortgages + an increasing number of big japanese investors are buying up u.s. home mortgages that have been <unk> and packaged for sale as <unk> instruments known as mortgage-backed securities + as much as N N of new u.s. mortgage securities issued by the federal national mortgage association or fannie mae and federal home loan mortgage corp. or freddie mac now flow into japanese hands + that may not come as a surprise to americans who have watched the japanese <unk> up properties in the u.s. from golf courses to a stake in rockefeller center + but it marks a big change for the japanese who <unk> mortgage securities after getting burned by a big downturn in interest rates a few years back + you ca n't say it 's a <unk> <unk> wave but we 're making some <unk> says fannie mae 's chairman david o. maxwell who visits tokyo at least once a year to explain and drum up investor interest in mortgage securities + interest is a great deal higher than it was a year ago + the steady growth of the mortgage securities market in the u.s. has even triggered talk of building up a similar market here + evidence of the growing japanese demand for mortgage securities <unk> + earlier this year blackstone group a new york investment bank had no trouble selling out a special $ N million <unk> trust it created for japanese investors + industrial bank of japan which claims to be the biggest japanese buyer of u.s. mortgage securities says it will more than double its purchases this year to an amount one official puts at several billion dollars + and a fannie mae <unk> this week promises to draw hundreds of prospective investors who can be expected to channel tens of billions of dollars into the market in the next few years + last year there were only several big investors who were interested says <unk> <unk> a vice president at the international arm of nomura securities co + this year some investors are changing their policies and investing a lot + ultimately he says strong demand could help to drive down interest rates on mortgage securities + at the moment nomura is the only japanese institution authorized to act as a primary seller of fannie mae instruments + but other japanese institutions say privately that they are considering asking to join the <unk> selling group + these securities are attractive to japanese investors for three reasons + first they are safe + while they are n't backed by the full faith and credit of the u.s. government as treasury bonds are it is widely assumed that the government would support them if necessary + u.s. treasury bonds are still the dollar-denominated investment of choice for long-term japanese investors + second they are liquid + the secondary market in federally backed mortgage securities now exceeds $ N billion or nearly half of the $ N trillion in u.s. residential mortgages issued + third they offer high yields + at the moment some offer as much as N to N percentage points over treasury securities of similar maturities + but there is a risk which the japanese discovered when they first dipped their <unk> into the market nearly five years ago + since most mortgages can be prepaid or <unk> at any time issuers of mortgage securities retain the right to buy back their bonds before maturity + that 's a <unk> for long-term investors since it forces them to reinvest their money usually at lower rates than the original mortgage securities carried + two or three years ago the problem was that people did n't understand the prepayment risk says nomura 's mr. <unk> + so they were surprised and very disappointed by prepayment + <unk> the trouble to japanese investors mortgage securities pay interest monthly since most mortgages require homeowners to make monthly payments + but japanese institutional investors are used to quarterly or semiannual payments on their investments so the monthly cash flow posed administrative problems + as a result japanese investors <unk> clear of the mortgage securities + but they did n't lose touch with the u.s. issuers + since N japanese investors have bought nearly N N of $ N billion in fannie mae corporate debt issued to foreigners money that fannie mae uses to buy mortgages from u.s. banks + and japanese investors took up nearly all of two $ N million real estate mortgage investment <unk> a kind of collateralized mortgage obligation that were offered to foreigners this year + in addition further packaging of mortgage-backed securities such as blackstone 's fund have reduced the effects of prepayment risk and automatically reinvest monthly payments so institutions do n't have to + freddie mac for years has offered a so-called participation certificate that guarantees it wo n't be prepaid for a set number of years and offers semiannual payments + as georgia-pacific 's bid for great northern nekoosa has shown <unk> takeovers are still alive despite <unk> reports of their demise + therefore the debate about poison pills will continue to rage in the <unk> of corporations and the halls of <unk> + although poison pills come in different colors and <unk> they usually give current shareholders the right to buy more stock of their corporation at a large discount if certain events occur typically if a hostile bidder acquires more than a specified percentage of the corporation 's stock + however these discount purchase rights may generally be redeemed at a nominal cost by the corporation 's directors if they approve of a bidder + supporters of poison pills argue that their adoption forces bidders to negotiate with a corporation 's directors who are thereby put in a better position to pursue the long-term interests of the corporation + recent studies by <unk> & co. conclude that corporations with poison pills have experienced greater <unk> appreciation than corporations without poison pills during the past few years + critics of poison pills argue that they harm shareholders by letting corporate management defeat takeover bids at premium prices and by <unk> premium bids from ever being made to shareholders + these critics are backed by several academic studies showing that the adoption of poison pills reduces shareholder values not merely in the short run but also over longer periods + institutional investors that must evaluate poison pills on a regular basis are interested less in this general debate than in the answers to specific questions about the corporation issuing the pill + does this corporation have a high-quality management team with a good track record + does this team have a viable strategy for improving shareholder values and does this strategy require <unk> over an extended period + will the adoption of this particular form of a poison pill significantly improve the chances for management to carry out this strategy + if the answers to these questions are <unk> then institutional investors are likely to be <unk> <unk> toward a specific poison pill + however the problem is that once most poison pills are adopted they survive forever + although the current management team may be outstanding who will be the ceo in N years + although the five-year strategy may be excellent what will be the strategy in N years + the solution to this problem is a <unk> poison pill + the limit could range from three years to seven years depending on the <unk> of the management team and the nature of its strategic plan + at the end of this period the poison pill would be eliminated automatically unless a new poison pill were approved by the <unk> shareholders who would have an opportunity to evaluate the corporation 's strategy and management team at that time + one rare example of a <unk> poison pill is the shareholder rights plan adopted by pennzoil last year after it received a huge litigation settlement from texaco + pennzoil 's poison pill covers five years in order to give current management enough time to put these proceeds to work in a prudent manner + another interesting example is the poison pill adopted recently by <unk> national intergroup inc. a diversified holding company + the state of wisconsin investment board which owned about N N of the company 's voting stock worked with management to devise a <unk> poison pill + this pill automatically expires after three years unless continued by a vote of the shareholders + the attitude of the wisconsin investment board reflects a growing <unk> to <unk> poison pills on the part of institutional investors as shown by the discussions at recent meetings of the council of institutional investors and my informal survey of several retirement plans with large stock positions + more widespread time limits on poison pills would allow shareholders to evaluate a specific poison pill within the context of a specific management team 's strategy + such concrete analysis is likely to lead to more <unk> dialogue between management and shareholders than the <unk> debate about poison pills + mr. <unk> is the general counsel and a managing director of fidelity investments in boston + michael blair former president and chief executive officer of enfield corp. failed to win election to the company 's board at a special shareholder meeting + mr. blair said after the meeting that he had filed separate lawsuits in the ontario supreme court for <unk> dismissal against enfield and for libel against its largest shareholder canadian express ltd. and two executives of hees international bancorp inc. which controls canadian express + holders at the meeting elected a full slate of canadian express <unk> to enfield 's <unk> board + mr. blair and hees have been <unk> for months + yesterday 's election was a <unk> to enfield 's annual meeting in june when mr. blair <unk> <unk> in favor of two hees <unk> + the ontario supreme court <unk> mr. blair 's decision + he later resigned from his executive positions with enfield saying that actions by its board amounted to my dismissal + mr. blair said his libel suit seeks N million canadian dollars us$ N million from canadian express and hees executives <unk> walt and <unk> <unk> + he said his suit against enfield seeks two years severance pay equivalent to c$ N + hees and canadian express executives could n't be reached for comment + enfield is a holding company with interests in manufacturing concerns + it is N N owned by canadian express another holding company + hees is a merchant bank controlled by toronto financiers peter and edward bronfman + all the concerns are based in toronto + buying N N of rockefeller group inc. is right up mitsubishi estate co. 's alley in one sense the huge japanese real estate company is entering a long-term relationship with a similarly conservative u.s. owner of tony urban property + but in another sense the $ N million purchase is <unk> <unk> industry analysts say + the usually cautious giant will become the majority owner of the company that owns new york 's <unk> rockefeller center at a time when <unk> over japanese purchases of u.s. property are at an <unk> high + officials of rockefeller group and mitsubishi estate prefer to focus on the <unk> nearly <unk> the threat of a backlash from the u.s. public + we think there will be positive as well as negative reactions says raymond <unk> senior vice president and chief financial officer of rockefeller group + on balance we think it will be positive + but some japanese government officials and businessmen worry that the prominent purchase is just the sort of deal that should be avoided for the time being + in particular they <unk> the timing coming as it does on the heels of sony corp. 's controversial purchase of columbia pictures entertainment inc + officially yes we encourage the free flow of direct investment says a foreign ministry official + but they did n't have to choose this particular moment + during the past year government officials and leading business organizations have repeatedly urged japanese companies to <unk> from flashy real estate purchases in the + since the mid-1980s japan 's other major real estate purchases in the u.s. include dai-ichi <unk> america corp. 's $ N million purchase of an office building at N east <unk> st. in manhattan in N and mitsui <unk> inc. 's $ N million purchase of the exxon building part of rockefeller center in N + in los angeles arco plaza was sold to <unk> corp. for $ N million in N and <unk> life insurance co. paid $ N million for atlanta 's ibm tower last year + altogether annual japanese investment in u.s. commercial real estate grew from about $ N billion in N to about $ N billion in N + many japanese companies have taken the warnings by the country 's leaders to heart and sought development partnerships rather than landmark properties + critics say mitsubishi estate 's decision to buy into rockefeller reflects the degree to which companies are <unk> by the pressure to act for the good of japan + those who have no money and are n't buying think it 's right to <unk> but those with money who want to buy for themselves pay no attention says an official of the <unk> business council + but to mitsubishi estate the acquisition has just the elements that should win support from both sides + first of all it is a friendly acquisition in which rockefeller sought out mitsubishi estate and asked it to buy a majority share + <unk> the two companies found a similarity in their business and development <unk> and intend to cooperate in a range of activities from real estate to telecommunications + finally mitsubishi estate has no plans to interfere with rockefeller 's management beyond taking a place on the board + we 'll continue to work with them in keeping with the reputation of the company and we 'll rely very much on their leadership says mitsubishi estate president <unk> <unk> + rockefeller may well have found its match in mitsubishi estate a company of long history strong government ties and sound resources + in asset terms mitsubishi estate is the largest real estate firm in japan + the core of its holdings is N square <unk> of <unk> expensive property in the <unk> district the business and financial center of tokyo often <unk> called mitsubishi village + the mitsubishi family company acquired that property from the government some N years ago when it was a portion of <unk> residential land running from the <unk> of the imperial palace east toward the <unk> of tiny shops and <unk> <unk> that made up the merchants ' district + at the time japan had just opened its doors to the world after about N years of <unk> and needed a western-style business center + mitsubishi built the government 's dream development the story goes in exchange for the official decision to <unk> tokyo 's central railway station there + that was just an early step in a relationship with government that has earned the mitsubishi group the dubious <unk> of <unk> literally <unk> a title that has the <unk> <unk> of doing the government 's bidding but also suggests the clout inherent in maintaining such close ties + mitsubishi estate is one of the dozens of companies in today 's mitsubishi group + it 's known for its <unk> in part because it has had little need for bold overseas ventures in the year ended march N N N of its total revenue came from office building management + its earnings can rise N N to N N annually simply from the natural turnover of tenants and automatic rent increases says <unk> mcdonald an industry analyst at james capel pacific ltd + for the latest fiscal year the company 's net income jumped a robust N N to N billion yen $ N million + for mitsubishi estate the rockefeller purchase will <unk> it firmly into the overseas real estate business the one area where it has lagged notably behind japanese competitors such as mitsui which had purchased the exxon building + japanese companies need to invest in overseas real estate for diversification says <unk> <unk> an industry analyst at goldman sachs japan corp + rockefeller is n't the first overseas purchase for mitsubishi estate it has already played a leading role in designing los angeles 's citicorp plaza + but the rockefeller investment is its largest + nonetheless it will barely make a <unk> in mitsubishi estate 's finances analysts say + mitsubishi estate has n't decided how it will raise the funds for the purchase which are due in cash next april but the <unk> holdings alone are estimated to have a market value of as much as N trillion yen to N trillion yen + moreover as a member of the mitsubishi group which is headed by one of japan 's largest banks it is sure to win a favorable loan + analysts say the company also could easily issue new convertible bonds or warrants + meanwhile at home mitsubishi has control of some major projects + it is the largest private-sector <unk> of the <unk> N project a <unk> development in the port city of <unk> about an hour outside tokyo + the project is one of a select group of public projects opened to u.s. firms under a <unk> construction trade agreement reached last year + the centerpiece of that complex the landmark tower will be japan 's <unk> building when it is completed in N + mitsubishi is also pushing ahead with a controversial plan to <unk> <unk> into a business center of high-tech buildings a project <unk> for N years and six trillion yen + time warner inc. and sony corp. may be today 's public enemies but the two entertainment giants could end up becoming partners in a number of ventures as part of a settlement of their <unk> legal dispute over hollywood producers peter guber and jon peters + the warner bros. studio and sony signaled they are close to a settlement yesterday asking a los angeles superior court to postpone a hearing scheduled for tomorrow on warner 's request for a preliminary injunction blocking mr. guber and mr. peters from taking the top posts at columbia pictures entertainment inc + in separate statements the two sides said they want to have further discussions + sony is acquiring columbia and guber-peters entertainment co. in two separate transactions valued at more than $ N billion + warner communications inc. which is being acquired by time warner has filed a $ N billion <unk> suit against sony and the two producers + warner has a five-year exclusive contract with mr. guber and mr. peters that requires them to make movies exclusively at the warner bros. studio + the two sides in the legal battle have <unk> accusations of <unk> at each other for weeks and both warner and sony have accused each other of trying to sabotage each other 's prospects for success in the entertainment business + but it may amount to little more than <unk> the two have continued <unk> <unk> settlement talks over the last few weeks and people familiar with the talks say the matter could be resolved within a week + both warner and sony declined to comment on the terms of the settlement discussions + but the people familiar with the talks said that warner is n't expected to get any cash in the settlement + instead sony is likely to agree to let warner participate in certain of its businesses such as the record club of sony 's cbs records unit + warner has <unk> sony as the largest record company but it does n't have a powerful world-wide record club like cbs + the two sides are also discussing certain business ventures involving cable rights to columbia 's movies + in addition sony is expected to agree to swap columbia 's N N stake in the <unk> <unk> calif. studio that warner and columbia share in exchange for the old mgm studio lot that warner acquired with the purchase of <unk> <unk> corp + still it may be tough for the two to have a smooth partnership in anything in the wake of sworn affidavits filed over the last week + one for example came from cbs records chairman walter yetnikoff who will head a committee that will oversee sony 's entertainment division including both records and movies + in his affidavit mr. yetnikoff accused warner chairman steven j. ross of having an <unk> <unk> bias and said that mr. ross had tried to talk him out of letting sony buy cbs records two years ago for that reason + mr. ross who will be chairman and co-chief executive officer of time warner after the merger is complete denied that in his own affidavit and called mr. yetnikoff 's remarks vicious and his claims reckless irresponsible and <unk> saying warner under his leadership has started a number of businesses in japan + mr. ross also said he enjoys warm professional and personal relationships with japanese executives including sony chairman <unk> <unk> who has visited my home here + but despite the <unk> between mr. ross and mr. yetnikoff officials of the time side of time warner have reportedly been increasingly interested in a settlement that might yield attractive business opportunities + time executives such as the company 's president n.j nicholas who will eventually be co-chief executive of time warner alongside mr. ross have no personal relationships or <unk> at stake in the fight over the guber-peters duo and were never directly drawn into the fray + talks between the two sides could <unk> of course as they have more than once since sony announced its plans to hire mr. guber and mr. peters + but both sides appear to be more willing now to meet each other 's terms to resolve the issue + and although warner has said it wanted the producers to fulfill the terms of their contract the producers said in sworn court <unk> that they did n't believe the relationship could be repaired after the <unk> of the legal battle + any settlement is also expected to exclude mr. guber and mr. peters from any of the projects they were working on at warner + the guber-peters duo have N projects in various stages of development and production at warner including <unk> of the <unk> and a bright <unk> lie + but that does n't mean mr. guber and mr. peters might not eventually get their hands on some of their projects studios develop hundreds of movies but produce only N to N each year + once a studio chooses not to actually make a movie that is in development producers are typically free to take it elsewhere + mr. guber and mr. peters also almost certainly would n't be able to participate in future <unk> to batman the blockbuster hit they produced for warner + but in acquiring guber-peters entertainment sony will actually get a piece of the profits from batman since the publicly held concern gets certain revenue from the movies mr. guber and mr. peters produce + the two producers own a combined N N stake in guber-peters + southern co. 's gulf power co. subsidiary pleaded guilty to two felony charges of conspiracy to make illegal political contributions and tax evasion and paid $ N in fines + gulf power 's guilty plea before u.s. district judge robert l. <unk> yesterday marks the end of only one part of a <unk> inquiry of southern co + the company is the subject of a federal grand jury investigation into whether its officials and its utility subsidiaries conspired to cover up their accounting for spare parts to <unk> federal income taxes + the terms announced today are strictly between the united states and gulf power said u.s. attorney robert l. <unk> + this is only a further step in a lengthy investigation + the plea settlement does not allow southern co. to charge any of the $ N to its customers or take action against employees who provided information during the federal inquiry + gulf power had been under investigation for violating the utility holding company act which prohibits public utilities from making political contributions + in a statement southern co. president edward l. <unk> said we believe our decision to plead guilty to these charges is responsible and proper + and our action today will allow gulf power to avoid prolonged <unk> legal proceedings + he did not say what effect if any the $ N fine would have on the company 's earnings + mr. <unk> said yesterday 's plea by gulf power which came after months of negotiations was based on evidence that gulf power had set up an elaborate payment system through which it <unk> outside vendors primarily three florida advertising agencies for making illegal political contributions on its behalf + the <unk> agency for example allegedly made contributions from N to N to various funds for political candidates then submitted bills to gulf power + the contributions were funded by monthly payments of $ N to $ N to <unk> in the <unk> of a special production fee in effect <unk> the nature of the payments from the internal revenue service federal prosecutors said + the government also indicated that former gulf power senior vice president jacob f. <unk> <unk> was the <unk> behind the use of the ad agencies <unk> dick leonard group ii inc. and <unk> & <unk> corp. to make payments to various political candidates from N to N + mr. <unk> who <unk> gulf power 's <unk> efforts died <unk> in a plane crash in april after learning he might be fired following the <unk> of <unk> in a company audit + government officials declined to say whether the investigation includes the ad agencies or the politicians involved + in new york stock exchange trading southern co. rose N cents a share to $ N + frequent <unk> offer <unk> up <unk> debate + to grab a bigger piece of the declining <unk> market seagram co. has launched a controversial frequent <unk> promotion for its chivas <unk> brand + under the program dubbed chivas class customers who send in two labels from chivas bottles will receive an upgrade in <unk> class on some trans world airlines flights + repeat customers also can purchase luxury items at reduced prices + but at a time of mounting concern over alcohol abuse some liquor marketers consider seagram 's frequent buyer promotion risky + i 'm surprised they 're doing this says penn <unk> president of <unk> & <unk> co. which markets <unk> walker <unk> + i would be very leery of anything that says if you drink more you get more + others question the impact on chivas 's upscale image of a promotion that has customers <unk> off labels + it 's really bizarre says albert <unk> creative director at the wells rich greene ad agency + chivas has an image of something you would <unk> rather than <unk> + chivas class is n't the first such promotion + last year <unk> <unk> offered N <unk> frequent <unk> miles in exchange for a label + and <unk> 's gave discounts on scottish merchandise to people who sent in bottle labels + but the scope of seagram 's chivas promotion sets it apart + the current campaign is just the first leg of an aggressive <unk> direct marketing plan + seagram says the promotion is designed to build brand loyalty rather than promote heavy drinking + seagram asks customers to buy only two or three bottles over a 12-month period says richard shaw vice president of u.s. direct marketing + we 're not asking them to save up N <unk> + we 're not saying drink more we 're saying trade up + <unk> <unk> a milk for hispanic <unk> + most food companies these days are trimming the fat and cholesterol content of their products to appeal to <unk> consumers + but <unk> foods inc. believes it can milk some sales by <unk> the trend + the <unk> n.j. company has formed a joint venture with a distributor called la <unk> to market a <unk> milk targeted at hispanic consumers + to give <unk> <unk> the <unk> taste <unk> says hispanics prefer the new brand has a <unk> content of N N + that compares with N N <unk> for whole milk + a spokesman for <unk> inc. the nation 's largest milk producer concedes <unk> may be on to something + <unk> sells considerably more whole milk than <unk> <unk> in southern and hispanic markets he says + <unk> even tested a milk with N N <unk> in the south but decided the market was too small + <unk> is selling <unk> <unk> in nearly N grocery stores and <unk> in new york and parts of new jersey + and it 's adding N to N new outlets a day says <unk> <unk> sales director at la <unk> + because of <unk> <unk> 's success he says the joint venture is developing other dairy products tailored to hispanic <unk> + jewelry makers copy cosmetics sales <unk> + for years <unk> jewelry makers fought a losing battle + jewelry displays in department stores were often <unk> and <unk> + and the merchandise was well fake + as a result marketers of <unk> <unk> steadily lost space in department stores to more fashionable rivals cosmetics makers + but lately retailers say fake has become more fashionable + and jewelry makers are beginning to use many of the same marketing <unk> <unk> in the aggressive world of cosmetics + last year the total women 's fashion jewelry business topped $ N billion says karen <unk> editor of accessories magazine + and it 's growing fast with annual sales gains of more than N N + to increase their share of that business jewelry makers such as crystal brands inc. 's <unk> and <unk> units and <unk> inc. maker of anne klein jewelry are launching new lines with as much fanfare as the <unk> companies + they 're hiring models to <unk> the <unk> sporting their <unk> and they 're even beginning to borrow a <unk> favorite of the beauty business offering a gift when consumers make a purchase + we 've started trying just about anything to keep sales moving in the stores says kim <unk> a <unk> vice president + but there are limits + ms. <unk> says retailers <unk> a promotion for <unk> with animal <unk> + her idea bring in live <unk> animals + <unk> whose national ads earlier this year included paper <unk> of its <unk> <unk> takes a <unk> approach + the company focuses on the <unk> aspects says andrew e. philip president + <unk> now trains sales help to advise customers on the best <unk> styles + but cosmetics firms still have one big marketing edge they <unk> sales people with commissions + jewelry makers rarely pay commissions and are n't expected to anytime soon + odds and ends + despite growing interest in the environment u.s. consumers have n't shown much interest in <unk> packages for household products + procter & gamble co. recently introduced <unk> versions of four products including tide and mr. clean in canada but does n't plan to bring them to the u.s. + marketers believe most americans wo n't make the convenience <unk> + <unk> ltd. tests a beer <unk> with oat bran rather than rice or corn + called <unk> 's original oat bran beer the <unk> costs about $ N a case + no cholesterol of course + northwest airlines settled the remaining lawsuits filed on behalf of N people killed in a N crash but claims against the jetliner 's maker are being pursued a federal judge said + northwest a unit of nwa inc. and mcdonnell douglas corp. which made the <unk> aircraft also are pursuing <unk> against each other in the crash near detroit metropolitan airport + terms of the settlements for the remaining N lawsuits against northwest were n't disclosed + a total of N lawsuits were filed on behalf of crash victims + u.s. district judge <unk> a. cook jr. announced the settlements as the jury trial was to begin yesterday + he reset opening arguments for today + the jury will resolve the claims against mcdonnell douglas northwest 's claim that a <unk> in the aircraft caused the crash and mcdonnell douglas ' claim that the plane was improperly <unk> + the national transportation safety board ruled that pilots failed to set the plane 's <unk> <unk> and <unk> properly for <unk> and failed to make mandatory <unk> checks that would have detected the error + also a <unk> warning system failed to alert the pilots the <unk> and <unk> were not set for <unk> the <unk> said + the only passenger who survived the crash was <unk> <unk> then N of <unk> ariz. whose parents and brother died in the crash + she now lives with <unk> in alabama + sun <unk> moon the korean <unk> who in N founded the unification church remains the mystery man behind a multimillion-dollar political and publishing operation based in this country and <unk> to the american right + but there may be less there than meets the eye + mr. moon planned to convert millions of americans to his unique brand of <unk> in which he plays the role of old <unk> <unk> political messiah and then to make the u.s. part of a unified international <unk> + his original strategy in itself a brilliant innovation for spreading a <unk> was to create new economic enterprises each time he wanted to extend and fund his various <unk> <unk> + tax-exempt airport and <unk> <unk> were intended only to provide start-up funds + more stable industries were to build an economically viable infrastructure for the moon movement in north america as they had in japan and south korea + then he would move his movement to europe + but that was not to be + throughout the 1970s and early 1980s spokesmen for both the unification church and its opponents in the <unk> movement gave wildly <unk> membership figures + their <unk> lives on + it is still common to read in the press that the church has N or more full-time american members and N associates + some estimates have gone as high as N members + but internal church documents clearly show that at its <unk> heights as when it organized a spectacular yankee stadium <unk> rally in N there actually were only about N full-time unification church members in the u.s. + mr. moon 's support for a <unk> richard nixon the <unk> scandal and his prison sentence for income-tax evasion did not help the church 's <unk> efforts + <unk> <unk> and <unk> <unk> kept member turnover high + that the membership number has even kept close to its N size is the result of the <unk> of the church + many of the enthusiastic young <unk> of the nixon era who remained <unk> to father moon are now parents producing new members by <unk> rather than conversion + the <unk> wealth of the unification church is another matter of <unk> + yet these purchases can be misleading + most were obtained with huge <unk> of church money from south korea and japan minimum cash <unk> and sizable mortgages + those teams of young <unk> selling flowers peanuts or <unk> outright at traffic <unk> brought in somewhere near $ N million a year during the <unk> 1970s but those revenues were a <unk> compared to the costs of mr. moon 's <unk> international conferences speaking tours and <unk> land buys + only his factories in japan and korea <unk> his <unk> at <unk> wages and producing everything from <unk> to <unk> to expensive marble <unk> kept the money flowing <unk> + virginia commonwealth university sociologist david <unk> who more than any other researcher has <unk> into the complex world of <unk> finances has concluded that profitable operations in the u.s. have been the exceptions rather than the rule + likewise journalists john burgess and michael <unk> of the washington post have estimated that at least $ N million was transferred from japan to the u.s. to deal with the church 's annual operating losses in this country + mr. moon 's two <unk> u.s. newspapers illustrate the scope of this financial drain + start-up costs for the washington times alone were close to $ N million and the total amount lost in this <unk> black hole was estimated at $ N million by N + since then moon 's organization has <unk> a pair of high-quality glossy opinion magazines the world and i and insight which are a further drain + insiders say that not even their editors know for sure how much these <unk> publications along with the newspapers have cost mr. moon + many american <unk> businesses such as a $ N million factory to build fishing vessels are <unk> + some components of the american church had their budgets cut in half last year and again this year + the relatively small academic conferences that have attracted conservative guests and press scrutiny in recent years are much more narrowly targeted and <unk> than the <unk> <unk> in fancy digs and exotic <unk> of years past + i attended several of these in the dual role as a <unk> of research findings as well as an investigator of my hosts + mr. moon 's <unk> house eventually even published three of my <unk> books on <unk> and politics + according to veteran watchers of <unk> affairs such as dr. j. gordon <unk> director of the institute for the study of american <unk> almost all operations are being drastically reduced as mr. moon now <unk> more on developing his empire in the far east + everything one <unk> senior consultant to the unification church recently told me in an interview is going back to korea and japan + europe had proved even less <unk> than north america + european politicians were less reluctant to have their governments investigate and <unk> new <unk> + so mr. moon is in retreat <unk> on the far east + south korea and japan continue to be profitable + moon 's <unk> industry conglomerate is now investing heavily in china where church accountants have high hopes of expanding and attracting <unk> even in the wake of the bloody massacre in <unk> square + <unk> motors is one such investment + according to senior consultants to the church mr. moon has successfully negotiated a joint venture with the chinese government to build an <unk> plant in <unk> province an area of china with a substantial korean minority + mr. moon has agreed to put up $ N million a year for N years and keep the profits in china + in return he has the government 's blessing to build <unk> and spread <unk> in that country + whatever respectability and ties to intellectuals and <unk> the publications and conferences bring really are salvage not the rev. moon 's original final goals but the ones for which he will have to settle + mr. <unk> is co-author with david g. <unk> of <unk> in america <unk> church and crusade and strange <unk> the great american <unk> scare + the manville personal injury settlement trust said it is considering several ways to ease a liquidity crunch that could include the sale of manville corp. to a third party + in a filing with the securities and exchange commission the majority holder of manville acknowledged that the cash portion of its initial funding of $ N million will be <unk> next year and that alternative sources of funds will be necessary to meet its obligations + the trust which was created as part of manville 's bankruptcy-law reorganization to compensate victims of <unk> diseases ultimately expects to receive $ N billion from manville but its cash flow from investments has so far lagged behind its payments to victims + <unk> for both the trust and the company refused to comment on whether any talks with a possible acquirer of manville had actually taken place + the trust is considering a sale of its manville holdings but manville has the right of first refusal on any sales of its stock held by the trust + manville a forest and building products concern has offered to pay the trust $ N million for a majority of manville 's convertible preferred stock + manville and the trust are discussing the offer but no decision has been made + the filing also said the trust is considering a sale of manville securities in the open market an extraordinary dividend on the common stock or a recapitalization of manville + the soviet union 's jobless rate is soaring to N N in some areas pravda said + it said the situation is caused by efforts to streamline bloated factory <unk> + unemployment has reached N N in <unk> N N in <unk> N N in <unk> N N in <unk> N N in <unk> and N N in <unk> the communist party newspaper said + all are <unk> republics along the southern border of the soviet union and all but <unk> have reported <unk> in the past six months + the newspaper said it is past time for the soviet union to create unemployment insurance and <unk> programs like those of the west + pravda gave no estimate for overall unemployment but said an association of the <unk> has <unk> up that says the number of jobless is N million soviets or N N of the work force + an <unk> dispute involving australia 's N domestic pilots has slashed airline earnings and <unk> much of the continent 's tourist industry + the only people who are flying are those who have to said frank moore chairman of the australian tourist industry association + he added how is a travel agent going to sell a holiday when he can not guarantee a return flight + transport giant <unk> which owns half of one of the country 's two major domestic carriers said the cost of the dispute had been heavy cutting <unk> 's profits N N to $ N million in the three months to sept. N + brazilian financier <unk> <unk> who was arrested on monday after N days in <unk> is likely to be <unk> next week by the brazilian judiciary + mr. <unk> who <unk> provoked a one-day <unk> of brazil 's stock markets in june when he failed to honor a debt of $ N million owed to his brokers yesterday blamed his <unk> on the president of the <unk> <unk> stock exchange a few days before mr. <unk> 's failure the exchange raised the required margin on <unk> transactions + china 's parliament ousted two hong kong residents from a panel <unk> a new constitution for the colony + the two <unk> <unk> and martin lee were deemed <unk> because they had <unk> china 's crackdown on its pro-democracy movement + the committee is <unk> hong kong 's constitution for when it <unk> to chinese control in N and chinese lawmakers said the two can only return if they abandon their <unk> stand against the chinese government and their attempt to <unk> the <unk> joint declaration on hong kong + nuclear <unk> for israel + israeli officials confirmed that energy minister <unk> <unk> and his canadian counterpart <unk> <unk> discussed a possible israeli purchase of a $ N billion canadian nuclear <unk> for producing electricity + however a canadian embassy official in <unk> <unk> said that canada was unlikely to sell the <unk> <unk> <unk> to israel since israel has n't signed the nuclear <unk> treaty + israel has been accused in the past of using <unk> to seek elements needed to develop nuclear weapons + the south korean government is signing a protocol today establishing formal diplomatic relations with poland + the two are also signing a trade agreement + south korean government officials said they do n't expect that seoul can loan money to warsaw but it can offer experience + poland is the second communist nation to recognize the seoul government south korea established diplomatic relations with hungary in february N + venezuela will hold a <unk> auction friday with N potential bidders participating + earlier this year venezuela announced it was opening up <unk> swaps to foreign investors but said the program would be limited to a net <unk> of $ N million a year + friday 's auction will be limited to $ N million <unk> by the central bank to potential investors + the office of foreign investment has authorized some $ N billion worth of investment proposals said edwin <unk> <unk> of foreign investment + most of the proposals are in tourism basic industry and <unk> and <unk> projects he said + under the <unk> program potential investors will submit <unk> bids on the percentage of discount they are willing to purchase the debt at and the bids will be allocated based on these discount offers + the <unk> central bank set a N N floor on the bidding + a song by american singer <unk> <unk> <unk> jailed black leader nelson <unk> was banned from south african state radio and television + the south african broadcasting corp. said the song freedom now was <unk> for broadcasting + britain 's house of commons passed a law that will force english <unk> fans to carry identity cards to enter stadiums + the <unk> law which would <unk> <unk> of cards must be ratified by the house of <unk> and is expected to become effective early next year + a federal judge ruled that <unk> marcos was n't brought to the u.s. against her will and that <unk> privileges which protect spouses from <unk> each other do n't apply in her case + as a result judge john f. keenan of new york ordered mrs. marcos to turn over to the court all <unk> and documents she may have filed in foreign countries in opposition to u.s. requests for evidence + mrs. marcos had claimed that she did n't have to turn over the documents because she was brought here <unk> and because providing the materials would violate her <unk> privilege + in N a year and a half after mrs. marcos and her late husband ferdinand marcos the ousted president of the philippines fled the philippines for hawaii they were charged with racketeering conspiracy <unk> of justice and mail fraud in a scheme in which they allegedly <unk> more than $ N million from their <unk> + much of the money was <unk> <unk> through purchases of prime manhattan real estate federal prosecutors have charged + mrs. marcos 's trial is expected to begin in march + u.s. law requires criminal defendants to turn over foreign documents such as those sought in the marcos case + the law is meant to overcome delays caused by defendants ' use of foreign procedures to block u.s. requests for records judge keenan said in his opinion + for instance the documents could involve foreign business dealings or bank accounts + the u.s. has charged that the <unk> ' alleged crimes involved bank accounts in the philippines hong kong the u.s. and other countries + on the <unk> of <unk> judge keenan wrote the suggestion that mrs. marcos was brought to this country against her will is <unk> by affidavit or <unk> + the judge also said the two <unk> <unk> privileges cited by mrs. marcos do n't apply + the first one permits a witness to refuse to testify against her spouse + but judge keenan said that privilege 's purpose is <unk> harmony in marriage + because mr. marcos died sept. N the privilege can no longer apply the judge said + the second <unk> privilege cited by mrs. marcos protects confidential communications between spouses + but judge keenan said that privilege is meant to protect private <unk> not litigation papers filed with foreign governments as mrs. marcos 's attorneys maintained + though judge keenan threw out most of mrs. marcos 's objections he agreed with one of her concerns that turning over the foreign documents could violate the defendant 's constitutional right against <unk> + as a result he said he will examine the marcos documents sought by the prosecutors to determine whether turning over the filings is <unk> + judge keenan also directed the prosecutors to show that mrs. marcos 's fifth amendment right against <unk> wo n't be violated + mrs. marcos 's attorney in new york <unk> <unk> declined to comment on the ruling + mrs. marcos has n't admitted that she filed any documents such as those sought by the government + charles <unk> the assistant u.s. attorney <unk> the marcos case did n't return phone calls seeking comment + u.s. and british law firms announce rare joint venture in tokyo + <unk> & austin a leading chicago-based law firm and <unk> morris <unk> a midsized london firm of <unk> are scheduled today to announce plans to open a joint office in tokyo + the firms will be registered under japanese law as foreign legal consultants and their practice with japanese clients will be limited to advising them on matters of foreign law + the office may also be able to advise foreign and multinational clients on international law and general matters + the office will provide <unk> shopping for japanese financial institutions and other clients seeking advice on access to the world capital markets according to a. bruce <unk> <unk> 's senior banking specialist who will move to tokyo from chicago to open the office next year + the <unk> venture will also be <unk> by another <unk> partner specializing in corporate law a partner from <unk> concentrating on acquisitions and a japanese attorney + the office will tap the resources of <unk> 's N lawyers in the u.s. london and singapore as well as the N <unk> staff members in london and brussels + <unk> is new to the far east + <unk> will maintain its association with the <unk> law office in tokyo + the united auto workers said it will seek a <unk> of a u.s. appellate court ruling against the union 's claim that the state of michigan <unk> in <unk> against female employees + a <unk> panel of the court in cincinnati made the ruling saturday + the <unk> is seeking a hearing by the full <unk> panel + the union sued the state in november N alleging that it intentionally <unk> job <unk> by sex and paid employees in <unk> female jobs less than males in comparable jobs + the <unk> also charged that the state applied its own standards for determining pay in a <unk> manner + in november N a district court judge in detroit ruled against the <unk> + the union is the bargaining representative for more than N michigan state employees + new jersey merger + one of the largest law firms in central new jersey has been created through the merger of <unk> <unk> & marcus a <unk> firm and <unk> <unk> <unk> & <unk> a health-care specialty law firm with N lawyers + <unk> <unk> is a <unk> firm that has expanded recently into such <unk> as banking labor and environmental work + the merged firm will carry <unk> <unk> 's name + drug wars + a texas legislator proposes <unk> drivers ' licenses of some drug offenders + the bill would <unk> courts to order the licenses as a condition of <unk> + state senator <unk> <unk> brown a republican who is running for texas attorney general introduced the bill + he said an altered license would be an embarrassment to <unk> and young adults and would act as a <unk> to drug use + richard <unk> executive director of the texas civil <unk> union called the proposal political <unk> and said it fails to recognize the drug problem as a health issue + the amendment offered by rep. douglas <unk> d. calif. was approved N during debate on a bill designed to strengthen the transportation department 's authority in dealing with leveraged buy-outs of airlines + the bill would require the agency to block the acquisition of N N or more of an airline 's stock if the purchase threatened safety reduced the carrier 's ability to compete or put the airline under foreign control + debate on the legislation which faces a veto threat from president bush is to continue today + the amendment would require the department to block the purchase of a major airline by anyone who has run two or more carriers that have filed for protection from creditors under chapter N of the bankruptcy code + in N texas air 's continental airlines filed for bankruptcy + earlier this year texas air 's eastern airlines filed for bankruptcy + this ought to be <unk> the do n't let frank lorenzo take over another airline amendment said rep. james <unk> d. minn. chairman of the house aviation subcommittee who argued that the provision was unnecessary because the bill already would give the department ample power to block <unk> deals + for years a strict <unk> <unk> the staff meetings at nissan motor co. 's technical center in tokyo 's western <unk> + employees wore <unk> <unk> listing not only their names but also their dates of hire + no one could voice an opinion until everybody with more seniority had spoken first so younger employees often the most enthusiastic and innovative seldom spoke up at all + but in N the <unk> and the do n't speak out of turn rule were abolished early steps in a cultural revolution still rolling on with all the <unk> of a freight train + in recent years nissan has instituted <unk> work schedules and allowed employees to dress <unk> even in blue jeans + a rule <unk> staffers to own competitors ' cars has been lifted and now many designers drive foreign cars to get useful ideas + nissan 's <unk> corporate song filled with <unk> to mount fuji has been scrapped in favor of a <unk> tune sung by a popular japanese <unk> + and in a japanese corporate first nissan recently opened the first <unk> company <unk> for single employees at the suburban tokyo technical center + we had lots of internal debate about this one concedes <unk> <unk> a senior public-relations official + but in the end top management decided to follow the voice of the younger generation + this corporate glasnost is a big reason nissan after years of making lackluster cars and <unk> profits has <unk> up its rigid ways and now is riding a string of hits ranging from the <unk> <unk> sedan and <unk> <unk> to the <unk> <unk> <unk> a <unk> sold only in japan + the company 's turnaround is far from complete many crucial tests are just beginning + but its surprising progress so far holds important <unk> for companies in trouble + the big one a company 's culture ca n't be <unk> changed unless top management first admits that things have gone badly <unk> and then publicly leads the charge + <unk> <unk> nissan 's executive vice president for finance helped set the tone in december N when the company was heading toward the first operating loss by a japanese auto maker since the nation 's postwar recovery + this is a time of <unk> to discover what is wrong with us he said + <unk> kume who took the helm as nissan 's president in june N added simply i am deeply disappointed + no wonder + nissan japan 's second-largest auto maker and the world 's <unk> was getting beat up not only by its bigger rival toyota motor corp. but also by honda motor co. the most successful japanese car company in the u.s. but a relative <unk> in japan + nissan 's market share in japan had been dropping year by year since the beginning of the decade + its u.s. sales sagged partly because of price increases due to the rising yen + worst of all nissan was <unk> with management <unk> <unk> and corporate <unk> + consider the experience of <unk> <unk> a <unk> designer of vehicle <unk> who joined nissan in N + at that time tasks were assigned strictly on the basis of seniority + the oldest designer got to work on the <unk> she recalls + the next level down did doors + if a new person got to work on part of the <unk> that was a big deal + this system produced boring <unk> cars that consumers just were n't buying + desperately hoping to spark sales nissan transferred N middle managers and plant workers to dealerships + meanwhile president kume ordered everyone from top executives to <unk> designers to go town watching to visit <unk> parts of tokyo to try to gain <unk> into developing cars for <unk> + some <unk> <unk> were downright comic + one group of <unk> manufacturing men from the company 's <unk> plant outside tokyo was supposed to check out a trendy restaurant in the city + but when they arrived at the door all were afraid to go in <unk> that they would be out of place + other trips were more productive + mr. kume himself visited honda 's headquarters in tokyo 's upscale <unk> district + he liked the <unk> lobby display of honda 's cars and trucks so much that he had nissan 's gloomy lobby exhibit <unk> + later nissan borrowed other honda practices including an engineering idea contest to promote <unk> + one engineer developed a <unk> car that moves <unk> + such sudden cultural shifts may come across as a bit forced but they seem to be genuine so much so in fact that some older employees have resisted + nissan handled the <unk> in a typically japanese fashion they were n't fired but instead were neglected says <unk> <unk> the personnel manager at the nissan technical center + despite the pain of adjusting the cultural revolution has begun to yield exciting cars + a year ago the company completely revamped its <unk> sedan the $ N <unk> which competes against a broad range of upscale <unk> it replaced its <unk> <unk> body with <unk> <unk> lines + since then nissan also has launched new versions of the $ N <unk> <unk> <unk> and <unk> sports car + the <unk> <unk> costs as much as $ N and is <unk> off against the <unk> N which begins at $ N + besides new <unk> the new <unk> have more powerful engines and more sophisticated suspension systems + all three new models are <unk> their <unk> by wide margins + in its home market nissan has grabbed attention with <unk> <unk> featuring <unk> odd enough to be <unk> + one is the <unk> a tiny <unk> with a <unk> <unk> top and <unk> <unk> that give it a <unk> look + nissan initially planned to sell just N <unk> but sales have passed N and there 's a one-year waiting list for the car + then there 's the <unk> an <unk> delivery van with a <unk> body that inspired its name + nissan helped develop a tokyo restaurant with both vehicles as its design theme + the chairs are <unk> seats and a gift shop sells such items as alarm <unk> <unk> like the <unk> 's <unk> <unk> + all these vehicles have sharply improved nissan 's morale and image but have n't done much for its market share + nissan had N N of the japanese car market in N before beginning a <unk> <unk> slide that continued through last year + strong sales so far this year are certain to turn the tide but even the N N market share that nissan expects in N will leave it far below its position at the beginning of the decade + nissan concedes that it wo n't recoup all its market-share losses in japan until at least N and even that timetable might prove optimistic + everyone else is going to catch up with nissan 's innovative designs says a. <unk> <unk> auto analyst at first boston japan ltd + nissan 's pace of <unk> hits will slow he adds just as <unk> toyota <unk> its own batch of new cars + likewise in the u.s. nissan has grabbed N N of the car market so far this year up from N N a year ago + but even that brings nissan only to the share it had in N and leaves the company behind its high of N N in N and N + why + so far nissan 's <unk> successes are mostly specialized vehicles with limited sales potential + in compact and <unk> cars the bread-and-butter sales <unk> for japanese auto makers nissan still trails toyota and honda + nissan hopes that that will start to change this fall with its new version of the stanza compact sedan + the stanza has been a <unk> compared with honda 's <unk> successful accord and toyota 's <unk> + but this year honda has revamped the accord and made it a midsized car + nissan instead has kept its new stanza a bit smaller than that and cut the base price N N at $ N stanza prices start $ N below the predecessor model yet have a <unk> engine + accord prices start at $ N + nissan 's risk is that its <unk> strategy might get lost amid the highly publicized rebates being offered by detroit 's big three + but on a new car a <unk> does n't work well because it <unk> the vehicle 's image contends thomas d. <unk> executive vice president of nissan 's u.s. sales arm + even if the new stanza succeeds nissan will remain behind in the <unk> segment where its <unk> does n't measure up to the honda civic and toyota <unk> + nissan will introduce a completely revamped <unk> next fall + at the opposite end of the market nissan <unk> its luxury infiniti division on nov. N three years after honda <unk> japanese luxury cars and two months after toyota 's lexus went on sale + nissan started advertising infiniti fully eight months before the cars hit american <unk> + the ads featured <unk> rocks and <unk> <unk> almost anything but the cars themselves + the ads have generated some <unk> but also plenty of attention because they are so unlike any other u.s. auto advertising + on the other hand nissan 's sales goals for infiniti are modest compared with toyota 's targets for lexus + nissan will build only about N of the $ N infiniti <unk> <unk> each month sending about N of them to the u.s. and keeping the rest for sale in japan + toyota wants to sell about N lexus <unk> <unk> next year in the u.s. alone + when i saw the lexus sales projections i got worried <unk> <unk> <unk> who led the infiniti development team + but on reflection mr. <unk> says he concluded that nissan is being prudent in following its <unk> strategy instead of simply copying lexus + infiniti is nissan 's big business move for the <unk> century and we 're in no hurry to generate large profits right away mr. <unk> says + despite plans to add two new infiniti models next year bringing the total to four infiniti wo n't show profits for at least five years he adds + these days nissan can afford that strategy even though profits are n't exactly robust + nissan had record net income of N billion yen $ N million in the fiscal year ended last march N a remarkable recovery from the N billion yen of two years earlier when the company lost money on operations + nissan has increased earnings more than market share by cutting costs and by taking advantage of a general surge in japanese car sales + but nissan expects to earn only N billion yen in the current fiscal year a modest increase of N N + the big reason for all its cost-cutting nissan remains less efficient than toyota + in its last fiscal year nissan 's profit represented just N N of sales compared with N N at toyota + to help close the gap nissan recently established a <unk> cost-cutting committee + nissan is the world 's only auto maker currently building vehicles in all three of the world 's key economic <unk> the u.s. japan and europe + that gives it an <unk> strategic advantage at least until its rivals catch up but also plenty of <unk> headaches + for example nissan 's u.s. operations include N separate subsidiaries for manufacturing sales design research etc. that report separately back to japan + and in july nissan 's tennessee manufacturing plant beat back a united auto workers organizing effort with aggressive tactics that have left some workers bitter + we are in a <unk> phase from being a japanese company to becoming an international company based in japan says mr. <unk> the executive vice president + he promises that nissan will soon establish a holding company overseeing all u.s. operations just as it 's doing in europe + perhaps the biggest challenge however will be to prevent a return to its former corporate <unk> as its recovery continues + already personnel officials are talking about the need for a phase two <unk> effort of some sort + we are still only half way through the turnaround of this company and there are many more things to do president kume says + he adds however that the momentum we have generated is <unk> + as expected warner <unk> records said it agreed to form a <unk> and <unk> joint venture with former mca records chairman irving azoff + warner said it will provide financing for the venture but did n't disclose terms + mr. azoff has n't named the company yet but any records it produces will be distributed by warner + warner is part of warner communications inc. which is in the process of being acquired by time warner inc + mr. azoff resigned as head of mca records a unit of mca inc. in september and had been discussing a joint venture with both warner and mca + in a statement yesterday mr. azoff said he chose warner the largest record company because their standing in the entertainment industry is second to none + president bush and soviet leader mikhail gorbachev will hold an informal meeting in early december a move that should give both leaders a political boost at home + the white house is <unk> not calling the meeting a summit so that there wo n't be any expectation of detailed negotiations or agreements + rather senior administration officials said that the unexpected meeting was scheduled at mr. bush 's request because of his preference for conducting <unk> through highly personal and informal meetings with other leaders + the two leaders will meet on dec. N and N <unk> the two days of meetings between a u.s. and a soviet naval vessel in the <unk> sea + the unusual <unk> meeting wo n't disrupt plans for a formal summit meeting next spring or summer at which an arms-control treaty is likely to be completed + in announcing the meeting yesterday mr. bush told reporters at the white house that neither he nor mr. gorbachev expects any substantial decisions or agreements + instead he said that the purpose is simply for the two to get better <unk> and discuss a wide range of issues without a formal agenda + despite the informal nature of the session and the calculated effort to hold down expectations the meeting could pay significant political dividends for both leaders + mr. gorbachev badly needs a diversion from the serious economic problems and ethnic unrest he faces at home + american officials have said that a meeting with the leader of the u.s. could help bolster his <unk> among soviet politicians and <unk> whose support he needs + for his part mr. bush has been criticized regularly at home for moving too slowly and cautiously in reacting to mr. gorbachev 's reforms and the historic moves away from communism in eastern europe + a face-to-face meeting with mr. gorbachev should damp such criticism though it will hardly eliminate it + senate majority leader george mitchell d. maine who has been the most prominent democratic critic of mr. bush 's handling of the soviet relationship praised the president for arranging the meeting + but he added the mere fact of a meeting does n't deal with the substance of policy + mr. bush said that the december meeting which was announced simultaneously in moscow will be held in the unusual setting of ships at sea to hold down the fanfare and force the two sides to limit participation to just small groups of advisers + by doing it in this manner we can have i would say more time without the press of social activities or mandatory joint appearances things of that nature for public consumption mr. bush said + soviet foreign minister eduard shevardnadze at a news conference in moscow said as the two sides plan to hold a <unk> summit in late <unk> summer next year they found it useful i would say even necessary to hold an interim informal meeting + although no specific agreements are expected mr. shevardnadze said that does n't mean they will be without an agenda + if the two leaders cover the subjects that have been featured in lower level u.s.-soviet meetings their talks would include human rights soviet reforms regional disputes relations with allies economic cooperation arms control and joint efforts to fight narcotics terrorism and pollution + the president specifically mentioned u.s. economic advice to moscow as a possible topic + mr. gorbachev has for months been publicly urging the u.s. to drop its restrictions on soviet trade + he recently told a small group of american businessmen in moscow that he hoped to sign a general trade agreement with the u.s. possibly at the N summit + the soviets hope a trade agreement would give them <unk> nation status which would lower the tariffs on soviet exports to the u.s. + in an unusually <unk> article about the latest economic <unk> unemployment pravda yesterday reported that three million soviets have lost their jobs as a result of perestroika and the number could grow to N million by the year N + economists in moscow are now proposing that the state start a system of unemployment benefits + but one bush administration official knowledgeable about the summit plan cautioned against assuming that there will be bold new initiatives on the soviet economy or other issues + do n't take this as some big opening for major movement on economic cooperation or arms control or the environment he said + those things will all come up but in a fairly informal way + instead this official said this is vintage george bush + this was george bush 's own idea + it 's george bush wanting to meet a foreign leader and talk to him directly + aside from the soviet economic plight and talks on cutting strategic and chemical arms one other issue the soviets are likely to want to raise is naval force reductions + western analysts say that given the meeting 's setting at sea gorbachev is unlikely to pass up the opportunity to press once again for negotiated cuts in the <unk> of both the north atlantic treaty organization and the warsaw pact + that theme has been a <unk> one for soviet military officials for much of this year + they argue that as the kremlin follows through on announced plans to cut land forces the soviets ' area of greatest strength the u.s. should show more willingness to cut sea forces washington 's area of greatest <unk> + one of the reasons bush administration aides are anxious to insist that the coming meeting will be informal is to avoid comparisons with the last such <unk> structured <unk> gathering former president reagan 's N meeting with mr. gorbachev in <unk> <unk> + that meeting sent <unk> through the western alliance because mr. reagan was pulled into discussing the possible elimination of nuclear weapons without consulting american allies + mr. bush said that he initiated talks with the soviets on the informal meeting by sending a proposal to mr. gorbachev last july which the soviet leader readily accepted + but word of the possible session was closely held by the president and a handful of top aides and word of it did n't reach many <unk> officials until the past few days + indeed many senior officials had been insisting for weeks that mr. bush was n't interested in such an informal <unk> + though president bush 's political critics at home have been urging him to open a more direct dialogue with mr. gorbachev it actually was the arguments of leaders within the soviet bloc itself that led the president to seek the december meeting + mr. bush decided he wanted the meeting after talking in europe in july with the leaders of poland and hungary who urged him to support mr. gorbachev 's efforts to transform the soviet system and to urge him to loosen his grip on eastern europe a senior aide said + while flying home from those discussions mr. bush drafted a letter to mr. gorbachev suggesting an informal <unk> to <unk> their formal summit next year + peter <unk> in moscow contributed to this article + <unk> <unk> del <unk> said its potential losses from lending to <unk> could reach N trillion lire $ N million marking the bank 's first <unk> of potential costs of unauthorized lending by its atlanta branch + bnl previously reported that its georgia branch had taken on loan commitments <unk> $ N billion without the <unk> management 's approval + state-owned bnl italy 's largest bank has filed charges against the branch 's former manager christopher <unk> and a former branch vice president alleging fraud and breach of their fiduciary duties + bnl also said that its board had approved after an <unk> discussion a letter to the bank of italy <unk> measures the state-owned bank has taken or plans to take to improve controls on its foreign branches + the central bank had ordered bnl to come up with a suitable program by yesterday + bank of italy has also ordered bnl to shore up its capital base to account for potential foreign loan losses and the rome bank has outlined a N trillion lire <unk> operation + bnl was unable to elaborate on what measures were planned by the bank to improve controls on its branches abroad + hardly a day passes without news photos of the police dragging <unk> protesters from some building or <unk> in one of our cities + of recent note are the activities of the <unk> and anti-abortionists anti-nuclear activists animal rights protesters college students concerned about <unk> <unk> groups various <unk> environmentalists and those <unk> with the pace of the war against aids + maybe he did n't start it but <unk> gandhi certainly provided a <unk> beginning to non-violent civil disobedience as we know it today + the <unk> or great <unk> one <unk> several campaigns of passive resistance against the british government in india + unfortunately according to webster 's <unk> <unk> his policies went beyond his control and resulted in <unk> and <unk> and later a renewed campaign of civil disobedience resulted in <unk> and a second <unk> + i am not a <unk> of everything gandhi did but some of his law breaking was justified because india was then under <unk> by a foreign power and indians were not able to participate fully in decisions that <unk> affected them + it is difficult however to justify civil disobedience non-violent or not where citizens have full <unk> to the ballot box to effect change + where truly representative governments are <unk> by constitutional <unk> of human rights and an independent judiciary to <unk> those rights there is no excuse for breaking the law because some individual or group <unk> with it + there may be a few cases where the law breaking is well <unk> and so completely <unk> of the rights of others that it is difficult to <unk> it + the case of <unk> parks the black woman who refused to sit at the back of the bus comes to mind as an illustration + but most cases of non-violent civil disobedience are not nearly so benign + the public has a tendency to <unk> <unk> demonstrations with non-violent civil disobedience + it is true that both are non-violent but there is a fundamental difference between them + <unk> demonstrations such as peaceful <unk> and other <unk> that do not <unk> the peace or cause a public <unk> or interfere with the rights of others are rights guaranteed by any truly free system of government + civil disobedience violent or non-violent is <unk> law breaking + the subject of this discussion is non-violent civil disobedience but before we get on with that let me make just a few <unk> remarks about <unk> demonstrations + they are useful to call public attention to <unk> but they have little value in <unk> anyone about the issues in dispute + the <unk> of television in dramatic confrontation encourages <unk> of <unk> <unk> through <unk> <unk> gestures <unk> signs and other <unk> inspired tactics + <unk> <unk> and an environment where compromise can begin are lost in a hostile posture <unk> by <unk> media interviews + at best demonstrations are <unk> and <unk> <unk> at worst they can become the <unk> that lead to law breaking + demonstrations are particularly apt to <unk> into criminal conduct when they leave the site of the <unk> and become mobile + <unk> criminals and street people looking for excitement <unk> themselves like <unk> to the <unk> of the crowd and use the protest as an excuse for rock throwing auto <unk> <unk> window breaking <unk> <unk> picking and general <unk> + soon the whole purpose of the demonstration is lost in <unk> mania + there are better ways to promote a cause + where non-violent civil disobedience is the centerpiece rather than a <unk> demonstration that may only attract crime it is difficult to justify + some find no harm in the <unk> of trespass minor property destruction blocking traffic and the like + they say these are small prices to pay for <unk> action for the <unk> cause + the crimes may appear small but the prices can be huge + here are two cases to illustrate + assume a neighborhood demonstration to protest speeding on a certain road or a <unk> accident involving a police car + the protesters lie down in the street blocking traffic and will not move until the authorities carry them away + assume that someone caught in the <unk> has a heart attack + there is no way to get an <unk> in quickly to move him to a hospital + he dies + the demonstration was non-violent and involved only a simple <unk> but its impact on that individual was violent and terminal + assume that a tv network is airing a celebrity interview program with a live audience + the politician appearing is highly controversial and has recently generated a good deal of <unk> amid certain groups + in a planned protest against his appearance several members of the studio audience chain themselves in front of the tv cameras in such a way that the program can not continue + the network must refund money to the advertisers and loses considerable revenue and prestige + the demonstrators have been non-violent but the result of their <unk> has been to seriously <unk> the rights of others <unk> with their dispute + it might be alleged that tv has done more than its share to <unk> and promote non-violent civil disobedience so the second situation <unk> above would be simply a case of <unk> coming home to <unk> + or maybe the tv network would lose nothing + <unk> or phil would probably pull up another camera and interview the <unk> protesters + let us look for a moment at another type of non-violent civil disobedience that only <unk> other people indirectly yet does <unk> damage to the nation as a whole + i am referring to those young men who chose to <unk> their country 's call to arms during the vietnam war and fled to canada or some other <unk> to avoid combat + their <unk> acts of civil disobedience which they tried to hide under the <unk> of <unk> at a war they characterized as <unk> weakened the national fabric and threw additional burdens on those who served <unk> in that conflict + even more at fault are those leaders in and out of government who urged and supported their <unk> thereby giving great help and comfort to the enemy <unk> + it is amazing that the <unk> mass executions in vietnam and cambodia do not weight more heavily on minds so morally <unk> + worse it remained to a <unk> but <unk> president of the united states to <unk> the final <unk> upon those who fought and died in vietnam + under the <unk> of <unk> the <unk> of the nation president carter <unk> thousands of draft <unk> thus giving dignity to their allegations of the war 's <unk> + the precedent having been set who can complain if future generations called upon to defend the u.s. yield to the temptation to avoid the danger of combat by simply declaring the war <unk> and <unk> until it is over + finally i think it important to point out the extraordinarily high <unk> of non-violent civil disobedience in these days of intensive media coverage + give television a chance to cover live any breaking of the law and no second invitation will be required + this brings into question the <unk> of those who lead civil disobedience demonstrations + do they want the <unk> for themselves or for their cause + here is a good rule of <unk> if the movement produced the leader the chance that he is <unk> is much greater than if the leader produced the movement + in either case ask yourself whether you have become better informed on the issues under protest by watching the act of civil disobedience + if you have not it is probable that a <unk> airing of the dispute by calm and rational debate would have been the better course + mr. <unk> was vice president of the u.s. from N until he resigned in N + gov. george deukmejian and key legislators agreed to back a temporary <unk> increase in the state sales tax to raise $ N million for repairs and relief associated with last month 's earthquake + the tax increase which will be considered at a special session of the state legislature that begins tomorrow would cover only part of the estimated $ N billion to $ N billion in total damage caused by the oct. N quake + aside from as much as $ N billion in recently approved federal aid the state is expected to draw from a gubernatorial emergency fund that currently stands at an estimated $ N million + i am not aware that there is anything but bipartisan agreement for the general <unk> of the <unk> plan said a spokesman for the governor after a monday meeting with legislative leaders over the <unk> question + the tax increase on top of the current <unk> per dollar sales tax would become effective this dec. N and expire dec. N N + the <unk> plan was preferred over an alternative that would have boosted the state gasoline tax + some legislators expressed concern that a <unk> increase would take too long and possibly damage chances of a major <unk> ballot initiative that voters will consider next june + despite continuing problems in its newsprint business <unk> corp. posted a N N gain in third-quarter net income + the consumer-products and newsprint company said net rose to $ N million or $ N a share from $ N million or $ N a share a year ago + sales rose N N to $ N billion from $ N billion + after a flat second quarter tied largely to lower newsprint earnings <unk> attributed the gain to improved results in its consumer businesses in north america brazil and korea + those gains came from higher prices particularly for disposable <unk> and tissue products and from increased sales primarily for <unk> products the company said + newsprint results continued to be depressed the company added because of industrywide price discounting + the <unk> comparison was also enhanced by charges taken in the year-earlier period including $ N million related to the modernization of a pulp and newsprint mill in alabama + in the N period also interest expense and tax rates were lower than a year ago + in the first nine months profit rose N N to $ N million or $ N a share from $ N million or $ N a share + sales rose N N to $ N billion from $ N billion + in new york stock exchange composite trading <unk> closed at $ N a share up $ N + intensive audits are coming to N taxpayers as research guinea pigs + this is the year <unk> <unk> of N personal returns are being picked <unk> for <unk> audits to help the irs update its criteria for enforcement audit selection and use of resources + the last taxpayer compliance measurement program survey covered N returns + the <unk> project starts jan. N and is to be done by may N N + specially trained irs agents will look for <unk> income and <unk> deductions and credits + the agents will make more than routine inquiries about such items as <unk> status and dependents they want to look at living standards and business assets + but they also are to see that taxpayers get all <unk> tax benefits and to ask if <unk> who sought irs aid were satisfied with it + courts have ruled that taxpayers must submit to <unk> audits but the irs will excuse from the <unk> <unk> anyone who was <unk> without change for either N or N + rewards have been suggested but never adopted for <unk> who come through <unk> audits without change + penalty overhaul is still likely congressional sources say + <unk> proposals to <unk> the more than N civil penalties and make them <unk> and easier to <unk> are in the house tax bill + but they were stripped from the senate bill after staffers estimated penalty revenue would fall by $ N million over five years + still congressional aides say penalty reform is a strong candidate for enactment even if not this time around although some provisions may be modified + sen. <unk> d. <unk> a leader on the issue who generally backs the house plan wants some changes for one separate sanctions for negligence and large <unk> of tax owed not a single penalty + he would ease the proposed penalties for delayed <unk> deposits and for <unk> form N and other reports that taxpayers correct voluntarily + the general accounting office urges congress to ensure that all penalties retain their force as <unk> + taxpayers ' rights are defined by a growing number of states + the N tax act created a federal bill of rights <unk> out irs duties to protect taxpayers ' rights in the assessment and collection of taxes + states are following suit + california enacted a rights law in N + in N illinois kansas ohio oregon and south carolina have adopted rights laws the federation of tax administrators a state officials ' group reports the features vary + and taxpayer groups are urging legislation in many other states + one group is the committee on state taxation which <unk> N <unk> corporations and advises the council of state chambers of commerce + the group 's mark <unk> says its efforts begun in N have led to the introduction of bills in massachusetts minnesota and colorado to establish <unk> procedures affecting all kinds of taxpayers + the group also seeks <unk> among states in provisions for taxpayers ' rights + this week new york city announced a <unk> policy <unk> on the federal bill of rights for taxpayers + the <unk> rate allowed for business use of a car in N has risen to N cents a mile for the first N from N cents in N the irs says the rate stays N cents for each added mile + also <unk> N cents for charitable activities and nine cents for medical and moving costs + ira <unk> could be used to qualify for bank services under a bill entered by <unk> chandler r. wash and <unk> d. texas + the bill would thwart a recent labor department opinion that investing <unk> funds to earn free checking violates the law + hugo <unk> vast <unk> + south carolina 's congressional delegation has entered senate and house bills to provide special <unk> treatment and other tax relief for <unk> growers in the hurricane disaster areas + he rode his <unk> but he could n't milk it the tax court says + the court often <unk> deductions of <unk> costs do they stem from a <unk> activity or a <unk> <unk> + but it 's rare to see both functions in one case + charles o. <unk> of mount <unk> ind. investment broker <unk> and son of a former stable owner <unk> tennessee walking horses for six years raised cattle for four and never made a profit on either + he claimed losses totaling $ N and the irs denied them all + special judge <unk> noted that <unk> managed <unk> in a <unk> way he kept detailed accounts practiced soil conservation enhanced his experience by consulting experts spent several hours a day doing chores and dropped the sideline when his best <unk> <unk> died + yet he took little <unk> care with his cattle he had no prior experience and did n't seek business counsel about them + the judge said <unk> may <unk> his $ N of losses from horse breeding but rejected the $ N in deductions from the cattle operation + briefs + the irs already is doing intensive <unk> audits of N returns for N and fiscal N filed by corporations with under $ N million in assets + president bush says he will name donald e. <unk> to the new treasury post of inspector general which has responsibilities for the irs + the u.s. and finland signed an income-tax treaty subject to <unk> + an arbitrator awarded eastern airlines pilots between $ N million and $ N million in back pay a decision that could complicate the carrier 's bankruptcy-law reorganization + eastern a unit of texas air corp. said it is <unk> the ruling to determine if it can appeal + it 's unclear whether eastern will succeed in <unk> the arbitrator 's decision made in a <unk> pay parity dispute that <unk> both the carrier 's chapter N petition and its N acquisition by texas air + all eastern 's previous court efforts to head off the pilots ' demands have failed + an eastern spokesman said he does n't expect that the arbitrator 's ruling will have any overall material effect on the company 's strategic plan + bankruptcy experts said the law is n't clear on how such an arbitration ruling can affect a company 's case + like any other creditor the pilots will have to apply to the court for payment of their claim + that may leave a lot of <unk> for u.s. bankruptcy judge burton r. <unk> to decide what if anything the pilots actually collect + in august he issued the ruling that let the pilots pursue their <unk> <unk> before the arbitrator + the pilots ' contract with eastern calls for a <unk> acceptable private arbitrator to resolve such <unk> + in a statement to employees eastern said the company was disappointed by the ruling + the obligation is totally unwarranted the statement said + james <unk> a lawyer for the air line pilots association said the pilots were extremely pleased + this is a blow not only to eastern but to the creditors committee he said + eastern 's creditors committee along with the company has consistently opposed the pilots ' claim which if paid would have to come out of money both hope to use to pay off other bankruptcy claims + eastern and its creditors are in the final delicate stages of negotiating a second reorganization plan to pay off the airline 's debts + an earlier plan which had received the creditors ' approval in july fell apart when eastern changed its business plan + it is n't known whether the pilot claim was figured into either plan + the dispute between eastern and its pilots is over a pay parity clause in the pilots ' contract + the clause was part of an agreement in which pilots accepted a substantial pay cut as long as no other labor group got a raise + shortly after texas air took control of eastern some machinists union supervisors received a N N pay raise + the pilots argued that this triggered a pay raise for them + eastern has disputed the claim but a federal district court an appeals court and now the arbitrator have all <unk> with the pilots + the two sides do n't even agree about how much money is at issue + the pilots put the amount as high as $ N million the company at $ N million + another arbitrator is hearing another pay parity case between eastern and its pilots resulting from a similar set of circumstances involving a separate pay raise granted another union + a decision on that case is n't expected before <unk> + ironically many of the pilots involved have left eastern or are still striking the carrier which filed for bankruptcy protection march N + about N have crossed the picket lines and returned to work + few people in the advertising business have raised as many <unk> as alvin a. achenbaum + the general public may not know his name but he 's famous make that <unk> in advertising circles a marketing consultant he <unk> slashing ad agency commissions to the <unk> of advertising clients and the <unk> of agencies + now after beating them mr. achenbaum is joining them + backer spielvogel bates worldwide named mr. achenbaum N vice chairman of professional services reporting directly to carl spielvogel chairman and chief executive officer + he joins nov. N <unk> his consulting firm <unk> achenbaum associates + in years past the ad industry 's most distinguished executives did n't hesitate to <unk> mr. achenbaum + they have since <unk> although one senior young & rubicam executive <unk> others said i think ad agencies owe carl spielvogel a vote of thanks for getting him out of the consulting business + but industry executives also believe hiring mr. achenbaum is a <unk> move for backer spielvogel a unit of saatchi & saatchi + mr. achenbaum has counted among his clients some of the most visible blue-chip advertisers in the country including nissan toyota seagram and backer spielvogel clients hyundai and j.p. morgan + at backer spielvogel he will work with clients and potential clients on marketing strategies aside from agency compensation issues he helped nissan for example come up with its <unk> and pricing for its new infiniti line + his client contacts meanwhile could prove a gold mine for an agency that has had few new business wins of late + i 've done over N ad agency searches for clients so i have a pretty good notion of what clients are interested in when they look for an agency mr. achenbaum said + as a consultant he has given <unk> at agencies including ogilvy & mather on how to win new business + mr. spielvogel said he hopes mr. achenbaum will do some strategic consulting at the agency for <unk> in hopes that they become clients + at backer spielvogel mr. spielvogel 's <unk> has been personal involvement with all major clients + he <unk> them he invites them to <unk> parties he strokes them + mr. achenbaum too <unk> into his clients ' business + carl has a much higher degree of <unk> with his clients than is ordinary for an agency his size + and with al 's record of being a <unk> and a detail guy you can see how the two fit said alan <unk> an analyst with painewebber + mr. achenbaum 's move follows the announcement last month that his consulting partner stanley <unk> N would retire + when the announcement came out i picked up the phone and said why do n't you come to us mr. spielvogel said + mr. achenbaum who had been considering <unk> down his firm or <unk> it with another small consulting outfit soon agreed + the two men are longtime friends and tennis partners having met about N years ago + before becoming a consultant in N mr. achenbaum was a senior executive at j. walter thompson co + he spent most of his career <unk> marketing strategies but became best-known for <unk> away at ad agency compensation + ad agencies typically earned a straight N N commission if a client spent $ N million on tv time the agency made $ N million + but mr. achenbaum <unk> negotiated fees which often worked out to less than N N + more recently he negotiated <unk> <unk> in which an ad agency in some cases must pay a client if it drops the account + he ultimately became so well-known for cutting compensation however that clients did n't seek him out for anything else + i was very frustrated he said + the fact of the matter is i am a marketer + that 's another reason for the backer spielvogel job + it struck me as a way to get back to what i really want to do + mr. spielvogel added <unk> the pressure on commissions did n't begin with al achenbaum + mr. spielvogel said mr. achenbaum will work with clients to determine the mix of promotion merchandising publicity and other marketing outlets and to integrate those services + he will concentrate on among others j.p. morgan and hyundai + mr. achenbaum helped morgan in its recent agency search and he has a long relationship with hyundai which is having severe troubles including declining sales + the trail of revenue is increasingly going away from pure advertising and going <unk> other services mr. spielvogel said + instead of being just an ad agency he said we have <unk> our mission here + our mission is to help our clients grow and to use every tool of marketing communications to accomplish that + industry executives are <unk> mr. achenbaum well + leonard matthews <unk> of the american association of advertising agencies called mr. achenbaum a <unk> in an <unk> N speech + yesterday mr. matthews now a consultant with the stamford conn. firm matthews & johnston <unk> i think he 'll be very good at that new job + and much better at that than at the <unk> he 's been doing recently + cotton inc campaign + cotton inc. the fiber company that represents cotton growers will begin a new ad campaign developed by ogilvy & mather <unk> day + j. nicholas hahn cotton inc. 's president and chief executive was an outspoken critic of wpp group 's acquisition of ogilvy group earlier this year + during the takeover mr. hahn said he would put his account up for review if wpp 's bid were successful but he did n't + cotton inc. 's new $ N million campaign calls cotton the fabric of our lives + the campaign <unk> its take comfort in cotton ads and marks the end of its national cooperative advertising efforts + for years the company 's ads were tied in with pitches for <unk> sheets or <unk> <unk> for example and an announcer at the end of the ads would tell customers where to find the true performance label + with the new tv spots ogilvy & mather has opted for a family style with lots of <unk> <unk> and <unk> + we 're making a fairly obvious plea for some emotional reaction says tom <unk> creative director at ogilvy & mather + cotton inc. will spend nearly $ N million on broadcasting on <unk> day alone advertising on such programs as good morning america macy 's <unk> day parade and the nfl holiday game + frank <unk> dies at N + frank l. <unk> one of the <unk> of advertising targeted at black audiences died at the age of N after a <unk> + mr. <unk> was chief executive officer of the <unk> group which he founded in N and which created ads for the black market + clients include miller brewing co. and general motors + mr. <unk> was <unk> sept. N and died monday according to samuel j. <unk> the agency 's president and chief operating officer + ad notes + earnings + <unk> group inc. new york reported third-quarter net income rose N N to $ N million or N cents a share from $ N million or N cents a share a year earlier + revenue increased N N to $ N million from $ N million + prime minister lee <unk> <unk> singapore 's leader and one of asia 's leading <unk> for N years recently announced his intention to retire next year though not necessarily to end his influence + the prime minister whose hair is <unk> and gray and whose face has a perpetual <unk> nonetheless continues to display an energy a precision of thought and a willingness to say publicly what most other asian leaders <unk> say only privately + the <unk> mr. lee recently spent an hour discussing the state of asia and the world with two journal reporters in his <unk> <unk> <unk> office + the interview did not touch on singapore 's domestic affairs + <unk> personal <unk> mr. lee picked up exactly where he left off several months earlier before the government crackdown in china when he had warned that the orthodox leadership in beijing feared a <unk> of views + <unk> follow + on china 's turmoil it is a very unhappy scene he said + it took <unk> <unk> former premier and party chief N years to build a team of economists who understood how the western economies work and now that team is part in <unk> part being <unk> and part missing + rebuilding that team mr. lee predicted will take another N years + that 's very sad for china and for asia because china could have been a good engine for growth not just for hong kong and taiwan but for japan korea and the rest of asia + on <unk> between china and the soviet union in important <unk> the soviets are different from the chinese + they are already industrialized + their problem is one of <unk> of an industrial economy + the chinese problem is much greater it 's how to <unk> to begin with + asked if the soviets like chinese officials wo n't one day face a similar conflict between the desire to <unk> economically and yet retain political control mr. lee said i would think that the soviets face a deeper dilemma because they have been more in <unk> than the chinese i mean keeping their people cut off from the outside world + mikhail gorbachev he said is ahead of china 's leaders in his awareness of the world + but i think the soviet peoples are more <unk> than the chinese + regardless he said he still believes the soviet union while falling far short of the efficiency of a western economy may well manage to improve considerably + on <unk> prosperity if america can keep up the present situation her markets open for another N years with adjustments and japan can grow and not cut back and so too korea taiwan hong kong singapore <unk> australia and new zealand then in N years the economies of these countries would be totally restructured to be able to almost sustain growth by themselves + in such an arrangement all benefit he said + and if the europeans come in they benefit too + it 's not a <unk> game + asked about the possibility of greater economic cooperation among <unk> nations which will be discussed nov. N and N at a <unk> meeting in <unk> mr. lee said the goal is to have a free and open world trading system + an asian bloc is n't intended he said + that 's not possible + on <unk> relations i 'm encouraged + i think the earlier <unk> notes struck by u.s. commerce secretary robert mosbacher and u.s. trade representative carla hills have been more <unk> + i believe the u.s. is becoming more patient and <unk> he said + it 's the total relationship that is important + the total relationship as mr. lee sees it is the flow of dollars to the u.s. to fund the deficits the investments the japanese are making in the u.s. in order to satisfy american demand that american products consumed in america should be made as much as possible in america by americans with japanese technology and capital + japan 's recent political turbulence mr. lee said may mean japan will slow market adjustments + they 'll be more <unk> in <unk> their own voters like opening up more to agricultural imports from america hurting their farmers + on u.s. military presence in asia asked if his offer to allow the american military to use facilities in singapore would help preserve america 's presence in the region at bases in the philippines he said what we have done is make it easier for the philippines to continue to host american bases without it being said they are <unk> of the <unk> and the only ones in asia or in southeast asia + we are willing to share the political burden of being host to america an imperial power + we think it is n't such a great burden that it carries no <unk> and we are prepared to do it + on <unk> relations it 's such a <unk> relationship going back into history + i really do not understand how it is that <unk> feel so <unk> involved in this father figure that they want to <unk> of and yet they need + i just do n't understand it + my relationships with the british are totally different + they <unk> it over me + they did me some good + they did themselves even more good + they let me down when the japanese came down during world war ii + i do n't feel down or done in because i show british <unk> on my television network or read their books + i mean it is a normal adult relationship + but the <unk> and the americans when i talk to them there 's so much passion about filipino <unk> being diminished as a result of being <unk> upon by the americans and so on + the <unk> <unk> tries to put on <unk> but we let it pass + it 's just comic when they try to <unk> they 're still the master race + mr. lee added that the <unk> are making it very difficult for the u.s. military presence to last beyond five or N years + on military alternatives if the u.s. pulls back the soviets already are present + i <unk> sooner or later the japanese would have to fill up a large part of the gap on the naval side + maybe the chinese maybe even the indians + on economic consequences of a diminished u.s. presence america is the only major power in recent history that has used its military might to sustain a system that enables all participants to equally benefit without her as the provider of the security taking royalties + asked why so few nations seem to share his views of america he said many people see it that way + but they have just taken it for granted + on cambodia let 's assume that former <unk> leader prince <unk> <unk> does what the press wants him to do and joins up with <unk> <unk> leader <unk> sen + is the trouble over + can <unk> and <unk> sen knock off the khmer rouge still supported by china + he ca n't + what is the way forward + to get the khmer rouge as part of a process for elections + and when they lose then we can expect china to stop aid + let 's put it <unk> + the chinese can not be seen to have made use of the khmer rouge and then <unk> them + ms. house is vice president of dow jones international group + mr. <unk> is editor of the asian wall street journal + everything looked good as <unk> walter levy and colleagues carefully cut away a woman 's <unk> tumor at the cleveland clinic in N + using small electrical shocks applied to her feet they were able to monitor <unk> nerves + the shocks generated <unk> <unk> that traveled via <unk> to brain and showed up clearly on a <unk> monitor indicating no damage to the delicate <unk> tissue + then says dr. levy she <unk> up <unk> + the damage was to her motor nerves which could n't be monitored along with the <unk> nerves he explains + the tragedy he adds galvanized me to look for a way to prevent similar cases + dr. levy 's answer may come with a new kind of magnetic brain probe a device that he and dozens of u.s. researchers are studying with great hope + besides holding the promise of safer <unk> surgery the probe could improve the <unk> of brain and <unk> disorders such as strokes and multiple <unk> + perhaps most exciting the device is <unk> open a window to the workings of the brain + the probe which is <unk> <unk> and apparently <unk> employs strong magnetic fields to induce small <unk> of electricity within the brain + if positioned over the brain 's <unk> area the hand-held <unk> generate <unk> <unk> that zip down motor nerves and <unk> <unk> making say a finger <unk> + in principle they will enable doctors to check the body 's motor system the way an <unk> tests a home 's electrical circuits by running current through them + until now we 've had no objective way of measuring motor function says keith <unk> a <unk> conducting clinical tests with the devices at boston 's massachusetts general hospital + all we could do was tell a patient squeeze my fingers as hard as you can or raise your arm + under the best circumstances such tests are <unk> when a patient is <unk> they do n't work at all + magnetic brain <unk> started in the early <unk> when researchers produced <unk> of light in the <unk> field with <unk> + in the 1960s <unk> clinic researchers developed magnetic devices to stimulate motor nerves in the hand and other <unk> + but for brain tests the <unk> machines would have required patients to stand on their heads says <unk> <unk> a researcher at the university of california at san diego + the field took off in N after scientists at britain 's <unk> university developed a handy compact <unk> for brain <unk> + since then at least two commercial versions have been put on the u.s. market and an estimated N have been sold + in august a chicago conference on such devices attracted more than N researchers who reported studies on everything from brain <unk> to physical therapy + we do n't feel we can use the devices routinely in surgery yet but we 're getting close says dr. levy who is now with the university of pittsburgh + a problem he adds is that <unk> brains are more <unk> to magnetic <unk> than <unk> ones + the devices could help indicate when surgery would help says charles <unk> a university of toronto <unk> + for example <unk> <unk> victims occasionally have some intact <unk> <unk> that if <unk> by emergency surgery enable partial recovery + but such operations typically are n't performed because there is no sign right after an injury that surgery would be beneficial + the cost of magnetic stimulators would seem like peanuts if we could retrieve <unk> function in such people dr. <unk> says + scientists caution there is a chance the <unk> technique might spark seizures in <unk> + but no significant problems have been reported among hundreds of people tested with the devices + the main <unk> besides feeling like a <unk> <unk> with <unk> <unk> is like a <unk> on the head says sam <unk> a <unk> who has studied the brain stimulators at yale university + one apparent side effect is a minor increase in a brain <unk> + and some doctors who have conducted hours of tests on themselves report temporary headaches + at least two companies <unk> laboratories inc. of <unk> wash. and <unk> medical systems inc. of <unk> conn. now sell versions of the magnetic devices + the machines which at $ N are <unk> by medical standards have n't been approved in the u.s. for marketing as brain stimulators but are sold for <unk> nerves in the hand <unk> and other <unk> areas + researchers can apply for permission to use the <unk> for brain studies + at the university of kentucky a team led by dean <unk> a physical therapy researcher is testing the stimulators in <unk> with electric shocks to induce muscle <unk> to help prevent <unk> of <unk> <unk> after <unk> surgery + similarly a <unk> university team led by heart researcher <unk> <unk> hopes to develop ways to <unk> induce <unk> muscle <unk> + the devices might someday serve as temporary <unk> or <unk> for stopped hearts says dr. <unk> whose prototype was dubbed the <unk> <unk> + the devices ' most remarkable possibilities though involve the brain + probing with the stimulators national institutes of health scientists recently showed how the brain <unk> <unk> resources after an <unk> + similar studies are expected to reveal how <unk> patients ' brains <unk> a first step toward finding ways to bolster that process and speed rehabilitation + scientists also are exploring memory and perception with the new machines + at the state university of new york at brooklyn researchers <unk> two groups of different letters on a computer screen in front of human guinea pigs + between <unk> certain areas in subjects ' brains are jolted with a magnetic <unk> + when the jolt is <unk> just right the subjects do n't recall seeing the first group of letters + where does that first <unk> go <unk> <unk> <unk> paul <unk> + trying to answer that is suggesting all kinds of theories such as precisely where and how the brain processes <unk> signals from the eyes + he and others say that the machines are weak enough that they do n't jeopardize the memory + both the <unk> team and researchers at the national <unk> laboratory in cambridge mass. are working with more potent magnetic brain stimulators + among other things the stronger devices may be able to <unk> forth <unk> memories and induce mood changes <unk> say + du pont co. hewlett-packard co. and los <unk> national laboratory said they signed a three-year $ N million agreement to <unk> on superconductor research + the collaboration will include at least N researchers and will be aimed primarily at developing thin films of <unk> superconductors for use in electronics the companies said + the materials discovered during the past three years conduct electricity without resistance and promise smaller faster computers and other new technologies + <unk> programs have <unk> as u.s. companies seek to spread the risks and costs of <unk> new superconductors and to meet the challenges posed by foreign <unk> especially in japan + the latest research pact <unk> du pont 's growing portfolio of investments in superconductors + the wilmington del. chemicals concern previously signed research superconductor agreements with oak <unk> national laboratory and with <unk> national laboratory + last year du pont agreed to pay $ N million for rights to superconductor work at the university of houston + hewlett-packard is a palo alto calif. computer maker + the los <unk> laboratory is one of three u.s. department of energy national laboratories designed as pilot centers to foster joint <unk> programs to speed the transfer of new superconductors to the marketplace + j.c. penney co. dallas said it issued $ N million of securities backed by credit-card receivables + the offering was priced with an N N coupon rate at N N to yield N N + the retailer said the securities are expected to be rated triple-a by standard & poor 's corp. and <unk> by moody 's investors service inc + they pay interest only for N months with principal payments beginning thereafter + the expected average life of the certificates is N years with the final scheduled payment in october N + first boston corp. is sole underwriter + as part of the transaction j.c. penney will sell a portion of its credit-card receivables to its <unk> receivables inc. unit which will then transfer them to a master trust + the trust will issue the certificates + credit support will be provided by a letter of credit facility from credit suisse in favor of the trustee fuji bank & trust co. for the benefit of the certificate holders + j.c. penney will continue to service the receivables + <unk> japanese industrial managers here always buck up nervous newcomers with the tale of the first of their <unk> to visit mexico a <unk> of <unk> <unk> <unk> <unk> N years ago + from the beginning it took a man with extraordinary <unk> to succeed in mexico says <unk> <unk> president of mitsui group 's <unk> engineering inc. unit + here in this new center for japanese assembly plants just across the border from san diego turnover is dizzying infrastructure <unk> bureaucracy intense + even <unk> drag <unk> bars where japanese <unk> <unk> over recorded music are prohibited by mexico 's powerful musicians union + still N japanese companies including giants such as <unk> industries corp. <unk> electronics components corp. and sony corp. have set up shop in the state of northern <unk> california + keeping the japanese happy will be one of the most important tasks facing conservative leader <unk> <unk> when he takes office nov. N as the first opposition governor in mexico 's modern history + mexico with its desperate need for investment and japan with its huge budget surplus would seem like a perfect match + but the two countries remain <unk> by a cultural barrier wider than the ocean + conservative japanese investors are put off by what they consider mexico 's restrictive investment regulations and loose work habits + from the <unk> ' viewpoint <unk> tactics of <unk> japanese managers do n't count for much in a land where a saying says there are no fixed rules + japan ranks as only the fourth largest foreign investor in mexico with N N of the total investments + that is just N N of all the money japan has invested abroad + mexican president carlos salinas de <unk> would like to change that + the young president so <unk> japanese discipline that he sends his children to a japanese school in mexico city + he already has <unk> a $ N billion loan from the japanese government + but mexico <unk> needs more help + mr. salinas 's unpopular institutional revolutionary party or <unk> faces congressional elections in N + for the <unk> to stand a chance mr. salinas has to press on with an economic program that so far has succeeded in lowering inflation and providing moderate economic growth + but maintaining the key components of his strategy a stable exchange rate and high level of imports will consume enormous amounts of foreign exchange + mr. salinas needs big investment inflows quickly + the problem is that japanese businesses make decisions with a view well beyond the coming months that weigh so heavily on mr. salinas + the japanese will come to mexico but not immediately says <unk> <unk> <unk> of the japanese external trade organization in mexico + if not now when + when the fruit is <unk> it falls from the tree by itself he says + pressed on the matter he is more specific + there will be big japanese investments probably five to N years from now + <unk> <unk> japan 's ambassador to mexico agrees that mexico may be too eager + there seems to be a <unk> in some sectors of mexico 's government that there is a lot of japanese money waiting behind the gate and that by slightly opening the gate that money will enter mexico + i do n't think that is the case + mexican officials maintain the japanese reserve is only a result of <unk> + because of distance it takes a while for them to appreciate the economic stability we 've achieved says one economic <unk> + mexico is sending a number of <unk> to japan looking for a major <unk> investment in telecommunications petrochemicals or tourism + it is hoped that other japanese would then follow the leader + but japanese investors say that their reluctance to invest stems not only from concerns about mexico 's economic outlook but also reservations about mexico 's recently revamped investment law + unable to get a new law through a congress with a strong leftist bloc mexico <unk> the existing law 's regulations + it created special 20-year trusts to allow foreigners N N ownership in some <unk> industries + it also made <unk> use of <unk> <unk> as <unk> industries some that had been in the national <unk> + those devices do n't give sufficient <unk> to our bosses in japan says <unk> <unk> representative of the industrial bank of japan + mr. <unk> cites the case of a customer who wants to build a giant tourism complex in <unk> and has been trying for eight years to get around mexican restrictions on foreign ownership of <unk> property + he could develop the beach through a trust but instead is trying have his <unk> become a <unk> mexican so his family gains direct control + some say the best hope for the <unk> is catching the eye of japan by promoting the one industry the japanese clearly like the border assembly plants known as <unk> which are open to N N foreign control + we must do more to help the japanese here in <unk> if we want them to invest elsewhere says mr. <unk> the <unk> of the national action party and himself a <unk> businessman + plant operators are <unk> by mr. <unk> 's pledge to cut corruption associated with the ruling party officials + but mr. <unk> <unk> that an even bigger problem could be <unk> from the u.s. where some politicians oppose what they consider japanese efforts to use <unk> to crack the u.s. market through the back door + shaken by tumbling stock prices and pessimistic projections of u.s. economic growth currency analysts around the world have <unk> down their <unk> of the dollar 's near-term performance + most of the N analysts polled last week by dow jones international news service in frankfurt tokyo london and new york expect the u.s. dollar to ease only mildly in november + opinion is mixed over its three-month prospects + half of those polled see the currency <unk> lower over the next three months while the others forecast a modest rebound after the new year + in late afternoon new york trading yesterday the dollar stood at N west german marks up from N marks late monday and at N yen up from N yen late monday + a month ago a similar survey predicted the dollar would be trading at N marks and N yen by the end of october + sterling was trading at $ N down from $ N late monday + in tokyo wednesday the u.s. currency was trading at about N yen at midmorning up from N yen at the opening and up from tuesday 's tokyo close of N yen + the average of estimates of the N economists polled puts the dollar around N marks at the end of november and at N yen + by late january the consensus calls for the dollar to be trading around N marks and near N yen + those with a bullish view see the dollar trading up near N marks and N yen while the dollar bears see the u.s. currency trading around N marks and N yen + a number of those polled predict the dollar will slip as the federal reserve <unk> interest rates + david owen an economist at kleinwort benson & co. in london said he expects further cuts in short-term u.s. rates in an effort to encourage a narrowing of the trade gap and to ensure a soft landing in the u.s. economy + robert white a vice president and manager of corporate trade at first interstate of california agreed with that view and predicted the u.s. federal funds rate will drop to between N N N and N N within N days from its current level at N N N + fed funds is the rate banks charge each other on overnight loans the fed influences the rate by adding or <unk> reserves from the banking system + mr. white also predicted a <unk> cut in the u.s. discount rate in the near future + the discount rate currently N N is the rate the fed charges member banks for loans using government securities as collateral + he expects such a cut because of problems in several sectors of the economy particularly real estate and automobiles + <unk> his argument the commerce department reported yesterday that new home sales for september were down N N from august 's revised N N fall + the drop marked the largest monthly tumble since a N N slide in january N + in last month 's survey a number of currency analysts predicted the dollar would be pressured by a narrowing of interest rate <unk> between the u.s. and west germany + indeed in early october the west german central bank raised its discount and <unk> rates by a full percentage point + several other european central banks notably in britain followed the west german <unk> 's lead by raising their own key rates + and a week later japan raised its official discount rate by a half point to N N + the japanese discount rate is the central bank 's base rate on loans to commercial banks + after a surprisingly sharp widening in the u.s. august merchandise trade deficit $ N billion from a revised $ N billion in july and well above expectations and a startling 190-point drop in stock prices on oct. N the federal reserve <unk> short-term interest rates knocking fed funds from around N N to N N N + but predictions that central banks of the group of seven <unk> major industrial nations would continue their massive dollar sales went <unk> as the market drove the dollar downward on its own reacting to wall street 's plunge and subsequent price volatility lower u.s. interest rates and signs of a slowing u.s. economy + <unk> consists of the u.s. japan britain west germany canada france and italy + <unk> <unk> senior deputy manager in the treasury department of mitsui bank ltd. in tokyo suggested that uncertainty about u.s. stocks and bonds has made japanese investors leery of holding those securities in the near term thus <unk> dollar demand + but mr. <unk> added once u.s. equities regain some stability players will move back into dollar-denominated investments especially treasury bonds whose value rises when interest rates decline + mr. <unk> said the key <unk> exchange rate is at N yen + if N is broken some panic will be seen he predicted explaining that japanese institutions are comfortable with the dollar anywhere between current levels and N yen + <unk> <unk> a senior trader at manufacturers hanover trust co. in frankfurt said he expects the dollar to recover within the next three months to around N marks as u.s. economic data particularly u.s. trade figures level off + he contended that the fed wo n't ease rates further but predicted <unk> officials will relax key rates in west germany + alfred <unk> chief trader at bank of boston in frankfurt took an opposite stance + he said he expects u.s. interest rates to decline dragging the dollar down to around N marks by the end of january after a short-lived <unk> to N marks by the end of november + west german interest rates he said will remain unchanged + but i 'm not one of these great dollar bears you see more of these days mr. <unk> said + i ca n't really see it dropping far below N marks + scott greene chief foreign exchange dealer with <unk> <unk> & co. in new york fits the <unk> of a great dollar bear + he predicted the u.s. unit will <unk> below N marks to around N marks this month and N marks by the beginning of the new year + we 're finally seeing the culmination of all the <unk> buildup of the last few months he said noting a continuing downward trend in u.s. interest rates a shaky stock market and <unk> economic times ahead all signal a significantly lower dollar + in the wake of british chancellor of the exchequer nigel lawson 's surprise resignation and sterling 's subsequent <unk> most analysts had little good to say about the pound 's near-term prospects + mr. owen of kleinwort benson suggested that the new chancellor john major will take a tough line in his autumn statement later this month helping to <unk> the pound + but he warned the currency will remain at risk + on the commodity exchange in new york gold for current delivery dropped $ N to $ N an ounce in moderate trading + estimated volume was N million ounces + in early trading in hong kong wednesday gold was quoted at $ N an ounce + christopher hill in tokyo nicholas hastings in london <unk> <unk> in frankfurt and <unk> <unk> and douglas <unk> in new york contributed to this article + west germany will repeal the unpopular turnover tax on securities transactions as of jan. N N economics minister helmut <unk> said + he said the government will also repeal the N N transaction tax on the first-time purchase of stakes in companies + the announcement follows several comments by government officials that the government will speed up the repeal of the tax which was originally scheduled to fall with the start of the single internal market in the european community at the end of N + the <unk> tax has been long criticized by the west german financial community because it tends to drive securities trading and other banking activities out of frankfurt into rival financial centers especially london where trading transactions is n't taxed + the tax has raised less than one billion marks $ N million annually in recent years but the government has been reluctant to abolish the levy for budgetary concerns + in the interview mr. <unk> did n't specify the amount of revenue the government will lose after the tax disappears + the new date means that the tax will be officially <unk> before the end of the current parliamentary term at the end of N and guarantees its <unk> even if the current <unk> coalition loses the elections in december N + earlier this year president bush made a final <unk> it offer on the minimum wage an increase to $ N an hour over three years and only if accompanied by a lower wage for the first six months of a job + now the white house has decided to accept the higher wage over only two years + the <unk> wage would apply only to first-time <unk> workers for N days + the white house had enough votes to sustain a veto but chose to avoid a confrontation + the only permanent losers will be the N or so workers everyone agrees will be priced out of a job at the $ N rate congress is likely to approve today + it is <unk> such as this that convince washington 's liberals that if they simply stay the course this administration will <unk> from its own course on this and other issues + the head trader of chemical banking corp. 's interest-rate options group has left the company following valuation errors that resulted in a $ N million charge against its third-quarter results + chemical said steven <unk> resigned recently but one individual close to the situation said the resignation was forced + mr. <unk> could n't be reached for comment + a separate inquiry by chemical cleared mr. <unk> of allegations that he had been <unk> <unk> by a new york money broker + that inquiry has n't resolved similar allegations involving another chemical options trader + in other personnel changes stemming from problems in its options unit + chemical named james kennedy a trader in swaps contracts for the bank to assume mr. <unk> 's duties and to be trading manager for derivative products including swaps and interest-rate options + lee <unk> vice president in charge of options research who discovered the valuation errors and was asked by senior management to <unk> out the mess resigned to take a position in asset and liability management at continental bank in chicago + mr. <unk> whom chemical tried to keep did n't return calls for comment + separately chemical confirmed that it took an undisclosed charge in the second quarter for losses on <unk> agreements involving foreign currency written by its branch in frankfurt west germany + a chemical spokeswoman said the second-quarter charge was not material and that no personnel changes were made as a result + the spokeswoman said the frankfurt situation was totally different from problems in the interest-rate options unit + according to individuals familiar with the situation the frankfurt loss stemmed from a computer program for <unk> prices on <unk> agreements that failed to <unk> an interest-rate environment where short-term rates were equal to or higher than long-term rates + while the incidents involving interest-rate options and <unk> agreements are unrelated some observers say they echo a N incident in which bankers trust new york corp. restated the value of its foreign exchange options contracts downward by about $ N million + these complex products require close monitoring because each must be valued separately in light of current market conditions + in an interest-rate options contract a client pays a fee to a bank for <unk> protection against adverse interest-rate swings for a specified period + in a <unk> agreement a client agrees to an exchange rate on a future currency transaction + some competitors maintain the <unk> option loss in particular may have resulted more from chemical 's taking large and often <unk> positions than a valuation problem + started three years ago chemical 's interest-rate options group was a leading force in the field + from N to N the value of chemical 's option contracts outstanding <unk> to $ N billion from $ N billion + more <unk> the volume of options written exceeded those purchased by almost <unk> + with such a <unk> book of options traders say chemical was more vulnerable to <unk> valuation assumptions + the chemical spokeswoman said the bank has examined its <unk> and internal controls + we consider our internal controls to have worked well she said adding that some procedures have been strengthened + its valuation <unk> she said are recognized as some of the best on the street + not a lot was needed to be done + when thomas w. wathen went big league last year he acquired a <unk> of <unk> along with a well-known but ailing security business pinkerton 's inc + there was a wanted <unk> offering rewards for the arrest of express and train <unk> frank james and <unk> w. james and the original pinkerton 's <unk> with an open eye and the <unk> we never sleep which inspired the phrase private eye + then there were two gold watches once owned by <unk> pinkerton who founded the company in chicago in N + but there were supposed to be three mr. wathen 's company claims + the missing watch is <unk> of the problems mr. wathen encountered in building his closely held california plant protection security service into the largest <unk> and security agency in the u.s. through acquisitions + the <unk> mr. wathen has learned that while acquiring a big <unk> company can be a <unk> to growth it can also bring a host of <unk> problems + we cleared out a lot of <unk> ' <unk> says the <unk> security veteran + mr. wathen who started his career as an air force investigator and worked as a security officer for several large companies built his california plant protection from a tiny <unk> security <unk> firm here in the san fernando valley + he joined the firm in N and bought it from the owners the next year + over the next N years california plant protection opened N offices around the country + yet although california plant protection was <unk> bigger and bigger clients the firm provided security for the N summer olympics in los angeles it still did n't have the name recognition of pinkerton 's + so when american brands inc. decided to sell the unit in N as part of a divestiture of its food and security industries operations mr. wathen saw a chance to accomplish several objectives + he decided he could easily merge pinkerton 's operations with his own while slashing overhead costs because the two already operated in many of the same cities + he could acquire a staff of loyal pinkerton 's employees many of whom had spent their entire careers with the firm he could eliminate a competitor and he could get the name recognition he 'd wanted + mr. wathen also <unk> the chance to demonstrate an entrepreneur like himself who 'd spent his whole career in the security business could run pinkerton 's better than an <unk> conglomerate or investment banker + the security business is my favorite subject + i love this business he says + most of the lbo guys do n't know how to run a business anyway + but there were <unk> not the least of which was that mr. wathen says he <unk> almost <unk> in doing the $ N million acquisition which was completed in january N + we were n't allowed to do any due <unk> because of competitive reasons + if we had it might have scared us off he says + five years of rapid expansion under american brands with an emphasis on marketing the agency 's services instead of improving them had hurt pinkerton 's profits mr. wathen claims + he says his team could n't tell whether accounts <unk> had been paid or not + pinkerton 's had locked itself into <unk> contracts to win new business with no hope of profitability until the contracts expired he adds + and regional offices were <unk> <unk> he claims + one office had N people doing the work of three and half of the employees had company automobiles + american brands declined to comment on mr. wathen 's accusations + the acquisition combined the country 's second-largest security company pinkerton 's with N sales of $ N million and the fourth largest california plant protection with $ N million in sales creating the industry 's biggest firm which took on the pinkerton 's name + even after <unk> itself of $ N million of unprofitable business the new pinkerton 's will have sales of about $ N million this year and operating profit roughly double the industry average of N N of sales says lloyd <unk> of <unk> & co. in los angeles which arranged the pinkerton 's acquisition + mr. wathen says his turnaround strategy has been simple just <unk> away at the fat + he began by closing N of the combined companies ' N offices in two months eliminating about N N of the company 's <unk> <unk> staff including more than N sales positions + he shut down the company 's tony new york headquarters + pinkerton 's world headquarters today is a <unk> <unk> office building across the street from the small van <unk> airport + next mr. wathen raised pinkerton 's rates which were <unk> lower than california plant protection 's average rate of around $ N + and he got rid of <unk> businesses that just were n't making money for the company + mr. wathen who says pinkerton 's had a loss of nearly $ N million in N under american brands boasts that he 's made pinkerton 's profitable again + but mr. wathen 's team still must pay down about $ N million of long-term bank debt from the acquisition within the next four years + last year earnings of the combined companies did n't cover debt service and pinkerton 's was forced to borrow $ N million of subordinated debt + we would n't have had to <unk> if a lot of the problems had n't been there mr. wathen says + this year mr. wathen says the firm will be able to service debt and still turn a modest profit + now pinkerton 's could become <unk> in a <unk> legal <unk> with its former parent + the company recently filed suit in state court in los angeles against american brands seeking at least $ N million in damages from the old greenwich <unk> company + the suit alleges that american brands <unk> the financial condition of pinkerton 's before the sale failed to disclose pending lawsuits and material contracts in which pinkerton 's was in default had n't registered the pinkerton 's name and trademark in the united kingdom and did n't tell california plant protection about some labor <unk> + we have previously had discussions with representatives of pinkerton 's inc. concerning the sale of the company and we concluded that we did not have liability under the contract says american brands + as this is now a litigation matter we have no further comment + and then there 's the case of the missing gold watch + the lawsuit alleges that an inventory of pinkerton 's <unk> disclosed that one of the watches had n't been <unk> over by american brands + american brand 's failure to surrender the gold watch has damaged new pinkerton 's in an amount as yet to be determined and deprived it of a valuable <unk> for which it had <unk> the suit charges + the key to pinkerton 's future will be sticking to what it does best being a security company says mr. wathen + the company is also renewing its emphasis on investigations particularly <unk> investigations for corporations + although investigations now account for only about N N of pinkerton 's total revenue that side of the business has traditionally been the more glamorous of the two and it carries historical and <unk> value + author <unk> <unk> who wrote the <unk> falcon was a former pinkerton 's <unk> + american brands just had a different approach mr. wathen says + their approach did n't work mine is + farm prices in october edged up N N from september as raw milk prices continued their rise the agriculture department said + milk sold to the nation 's dairy plants and dealers averaged $ N for each hundred pounds up N cents from september and up $ N from october N the department said + commercial <unk> led by <unk> and <unk> rose N N in october <unk> and other <unk> rose N N + <unk> prices fell N cents in october to N cents a pound while turkey prices rose N cents a pound to N cents + egg prices averaged N cents a dozen down N cent from september + <unk> rose $ N to $ N a <unk> in october while beef cattle slipped N cents to $ N for each hundred pounds and <unk> dropped N cents to $ N + soybeans averaged $ N a bushel down N cents from september corn averaged $ N down seven cents and <unk> grain averaged $ N for each hundred pounds down N cents according to the department + paramount communications inc. new york completed the sale of its associates corp. consumer and commercial finance subsidiary to a unit of ford motor co. for $ N billion + paramount which agreed to sell the unit in july said it would realize net proceeds from the sale of $ N billion with an after-tax gain of $ N billion + paramount said the gain would be recorded in its fourth quarter which ended yesterday + paramount said the sale <unk> the strategic restructuring it began in N and would enable it to focus on its entertainment and publishing businesses + ford said in july it planned to operate associates based in dallas as a separate entity in its ford financial services group + paramount said associates has about $ N billion in total assets making it third-largest in terms of assets among independent finance companies in the u.s. + sea containers ltd. in a long-awaited move to <unk> a hostile takeover bid said it will sell $ N billion of assets and use some of the proceeds to buy about N N of its common shares for $ N apiece + together with the N million shares currently controlled by management subsidiaries and directors the completed tender offer would give sea containers a controlling stake + describing itself as asset rich sea containers said it will move immediately to sell two ports various <unk> ferry services containers and other investments + of the proceeds $ N million will be used to fund its tender offer + sea containers added that the recapitalization plan will reduce its debt by more than $ N million + the company which has N million common shares outstanding said in <unk> that it was considering a restructuring to ward off a hostile takeover attempt by two european shipping concerns + in late may <unk> holding ag and <unk> plc launched a $ <unk> or $ N million tender offer for the hamilton <unk> sea containers + in <unk> the companies through their jointly owned holding company temple holdings ltd. sweetened the offer to $ N a share or $ N million + officials for temple declined to comment + news of the restructuring plan sent sea containers ' shares up $ N to $ N in new york stock exchange composite trading + walter <unk> an analyst with painewebber inc. said that offering holders a higher $ <unk> price is a fairly effective method of blocking the <unk> bid + michael <unk> an analyst with tucker anthony & <unk> day added that the sale of assets would allow sea containers to focus on its core container businesses + for holders who decide not to tender their shares sea containers will issue one share of preferred stock with a stated value of $ N plus a cash dividend on the common stock + the company said its directors management and subsidiaries will remain long-term investors and wo n't tender any of their shares under the offer + sea containers said the offer will proceed after the <unk> supreme court <unk> or <unk> an interim injunction <unk> the company from buying its shares + that injunction resulted from litigation between temple and sea containers last may + the company said the court has indicated it will make a decision on or about nov. N + sea containers will soon set a date for its annual shareholder meeting to seek holder approval for the offer + you 'd think all the stories about <unk> communities and developers getting hud grants would prompt congress to tighten up on upscale housing subsidies + no way + congress has just made it easier for the affluent to qualify for insured loans from the <unk> federal housing administration + it appears that the only thing congress is learning from the hud story is how to <unk> its control of the <unk> pot going to special interests + right now the largest loan the fha can insure in <unk> housing markets is $ N + last week housing <unk> persuaded congress to raise the ceiling to $ N making fha loans more accessible to the <unk> + but it does that at the cost of <unk> the taxpayer 's exposure if the fha is forced to pay for more loans going sour + this is no idle fear last year the fha lost $ N billion in loan defaults + but the higher mortgage ceiling is only the <unk> <unk> for what senator alan cranston and majority leader george mitchell have in mind for housing + the senate banking committee will begin hearings next week on their proposal to expand existing federal housing programs + other senators want to lower the down payments required on <unk> loans + that would be a formula for ensuring even more fha red ink + experience has shown that the most important element in predicting a <unk> default is the down payment + because a <unk> can use an fha loan to finance all points and closing costs the fha can wind up lending more than a house is worth + if housing prices continue to fall many borrowers would be better off walking away from their homes and leaving taxpayers with the losses + much the same thing happened with <unk> s&ls a problem congress just solved with a $ N billion bailout + we hear that hud secretary jack kemp is <unk> with going along with some of the <unk> proposals + that sounds like a formula for ensuring that he gets dragged into the next hud <unk> pit + a group of N senators has written mr. kemp urging him to reject <unk> and focus on programs that <unk> the poor rather than create vast new government obligations + but even if he agrees mr. kemp does n't write the nation 's housing law congress does + and the majority of members <unk> view the current <unk> of hud as mainly a chance to <unk> through their own slate of projects + exhibit a is last week 's house vote to fund N pet projects out of the same discretionary fund that is at the heart of the hud scandal + none of the grants had been requested by hud <unk> <unk> or were the subject of a single hearing + more and more observers now realize that the key to ending future hud scandals lies in forcing congress to clean up its own act + this week a baltimore sun editorial said the <unk> subcommittee on hud should forget about sam <unk> 's testimony for the moment and call some other witnesses the various congressional sponsors of the N pork-barrel projects + the sun concluded that mr. <unk> is only part of the problem and a part that 's gone + if hud is to be <unk> it concluded members of congress will have to start looking into and doing something about the practices of their colleagues + of course <unk> is about the last thing this congress is interested in + proponents of expanding fha programs say they merely want to help home buyers who are frozen out of high-priced markets + but the fha program is hemorrhaging bad loans + jack kemp has submitted a package of reforms and they are surely headed for the capitol hill <unk> + like the s&l mess before it this is a problem congress should be solving not ignoring + gillette co. boston said it is planning to restructure its south african subsidiary + under the plan gillette south africa will sell manufacturing facilities in springs south africa and its business in <unk> and plastic bags to <unk> pharmaceuticals ltd. an affiliate of <unk> american corp. a south african company + terms were not disclosed + a final agreement has not been signed and the moves will not have a material effect on the company gillette said + the company said it is part of a continuing world-wide restructuring in which it has <unk> or sold operations in several countries + gillette said its continued presence in south africa enables it to make meaningful contributions to south african society to the lives of its employees and to the communities in which it operates + gillette south africa employs about N people + about N N of the work force will continue with gillette or transfer to <unk> pharmaceuticals the company said + the soviet legislature approved a N budget yesterday that <unk> its huge deficit with cuts in defense spending and capital outlays while <unk> to improve supplies to frustrated consumers + the vote to approve was + a proposal to raise prices of beer tobacco and <unk> was rejected N + soviet president mikhail s. gorbachev told the legislators they had made a good start but that the most difficult work was still ahead + the tass news agency said the N budget anticipates income of N billion rubles us$ N billion and expenditures of N billion rubles us$ N billion + those figures are almost exactly what the government proposed to legislators in september + if the government can stick with them it will be able to <unk> this year 's N billion ruble us$ N billion deficit + officials proposed a cut in the defense budget this year to N billion rubles us$ N billion from N billion rubles us$ N billion as well as large cuts in outlays for new factories and equipment + tass said the final budget and economic plan calls for a sharp increase in the production of consumer goods + trial and <unk> + at times i sequester my mind when i must think with precision <unk> from all other thoughts while trying to reach a decision + but often nothing 's resolved to my frustration and <unk> with pros and <unk> in limbo i feel like a hung jury + arnold j. <unk> + daffynition + <unk> applause <unk> <unk> + marvin <unk> + ocean drilling & exploration co. will sell its <unk> business and took a $ N million loss from discontinued operations in the third quarter because of the planned sale + the new orleans oil and gas exploration and <unk> operations company added that it does n't expect any further adverse financial impact from the restructuring + in the third quarter the company which is <unk> by murphy oil corp. of arkansas had a net loss of $ N million or N cents a share compared with a restated loss of $ N million or N cents a share a year ago + the latest period had profit from continuing operations of $ N million + revenue gained N N to $ N million from $ N million + ocean drilling said it will offer N N to N N of the <unk> business through an initial public offering in the near future + it has long been rumored that ocean drilling would sell the unit to concentrate on its core oil and gas business + ocean drilling said it wo n't hold any shares of the new company after the restructuring + after N years of pushing labor proposals to overhaul the nation 's health-care system <unk> seidman of the <unk> is finding interest from an unlikely quarter big business + corporate leaders frustrated by double-digit increases in health-care costs are beginning to sound like liberal democrats + failure to check rising medical costs ultimately could lead some of us who today are free-market advocates to <unk> our thinking and positions with respect to <unk> national health insurance arthur <unk> a general electric co. vice president warned earlier this year + the <unk> impact of health benefits has driven business and labor to a surprising consensus + both the <unk> and the national association of manufacturers are calling for measures to control rising costs improve quality and provide care to the N million americans who currently lack health insurance + agreement on these points is a long way from a specific program and nobody expects the u.s. to rush toward radical restructuring of the health-care system + but there are signs that labor-management cooperation could change the politics of health-care legislation and the economics of medicine + i ca n't remember a time when virtually everyone can agree on what the problem is says mr. seidman who heads the <unk> 's department dealing with health matters + because the bush administration is n't taking the initiative on health issues business executives are dealing with congressional democrats who champion health-care revision + business across the country is spending more time addressing this issue says sen. edward kennedy d. mass + it 's a <unk> issue + business complained earlier this year when sen. kennedy introduced a bill that would require employers to provide a minimum level of health insurance to workers but does n't contain <unk> measures + partly in response a bipartisan group of senators from the finance and labor committees is <unk> a plan to attract broader support + it will feature a <unk> provision designed to keep expanded benefits from fueling higher care prices + at N N of gross national product u.s. health costs already are the highest in the world + by contrast japan 's equal N N of gnp a nation 's total output of goods and services + management and labor worry that the gap makes u.s. companies less competitive + chrysler corp. estimates that health costs add $ N to the price of each of its cars about $ N to $ N more per car than foreign competitors pay for health + the cost of health care is eroding standards of living and <unk> industrial strength complains walter <unk> a chrysler <unk> specialist + labor is upset because many companies are using higher employee insurance premiums <unk> and <unk> to <unk> surging medical costs to workers + health benefits are contentious issues in the strikes against pittston co. and nynex corp + in their new contract this year american telephone & telegraph co. and the communications workers of america agreed to look for prompt and lasting national solutions to rising health-care costs + some analysts are <unk> about the new corporate interest in health-care overhaul + carl <unk> president of the health insurance association of america <unk> at capitalists who want to <unk> the entire financing system for health + they hope they can buy some government cost discipline but this is a false hope mr. <unk> says + he asserts that government has done an even worse job of controlling its health bill than business + so far neither the bush administration nor congress is prepared to lead the way toward revamping health care + the administration lacks a comprehensive health-care policy + congress still is struggling to <unk> the unpopular catastrophic care act of N which boosted benefits for the elderly and taxed them to pay for the new coverage + a bipartisan commission established by congress and headed by sen. john rockefeller d. <unk> is scheduled to present new plans for dealing with the uninsured and long-term care for the elderly by next march N + a <unk> commission appointed by health and human services secretary louis sullivan is taking a broad look at the economics of medicare for the elderly medicaid for the poor and the health system in general + it is expected to report next summer + no magic bullet will be discovered next year an election year says rep. <unk> stark d. calif + but N could be a window for action + the pressure for change will rise with costs + i think employers are really going to be the ones to push for major change says sharon <unk> a health expert at nam + any major attempt to <unk> the health-care system is likely to trigger opposition from politically powerful interest groups particularly the american medical association and perhaps from the public as well if congress takes steps that patients fear will limit the availability of care + the nam <unk> efforts which both the administration and the medical profession have begun to measure the effectiveness of medical <unk> and then to draft <unk> guidelines + advocates hope that such standards will improve treatment while limiting unnecessary tests and medical procedures + hhs secretary sullivan estimates that as much as N N of the medical procedures performed each year may be inappropriate or unnecessary + limiting care wo n't be easy or popular + to slow the rise in total spending it will be necessary to reduce <unk> use of services the nam warns in a policy statement + this will require us to define and <unk> what is necessary or appropriate care + this involves <unk> and it cuts against the grain of existing consumer and even provider <unk> of what is necessary + the <unk> also <unk> treatment guidelines + in addition it 's <unk> with an approach that would impose <unk> <unk> or budgets on the government as a whole and on individual states as a way to slow health-care spending + at a meeting here on nov. N the labor federation plans to launch a major effort to build <unk> support for health-care overhaul + <unk> inc. said it plans to shut down three <unk> plants moving their <unk> operations to a leased facility in <unk> ontario + the company said the <unk> business has been under severe cost pressures for some time + the fasteners <unk> and <unk> are sold to the north american auto market + a company spokesman declined to estimate the impact of the <unk> on earnings + he said the new facility will employ N of the existing N employees + the steelmaker employs about N people + <unk> said it has an option to lease a <unk> building in <unk> and proposes to spend N million canadian dollars us$ N million on the facility + the three existing plants and their land will be sold + first security corp. said it tentatively agreed to acquire <unk> <unk> for stock valued at about $ N million + terms call for first security to issue about N share of its stock for each <unk> share held or a total of about N first security shares + it has about N million shares outstanding + <unk> with about $ N million in assets is the parent of the <unk> bank which has six offices and headquarters at <unk> <unk> utah + the purchase price is equal to about N times <unk> 's roughly $ N million book value or assets less liabilities + salt lake <unk> first security with $ N billion in assets said the agreement is subject to shareholder and regulatory approval and that it hopes to complete the transaction early next year + georgia-pacific corp. 's unsolicited $ N billion bid for great northern nekoosa corp. was hailed by wall street despite a cool reception by the target company + william r. <unk> nekoosa 's chairman chief executive officer and president characterized the $ <unk> bid as <unk> and said nekoosa 's board would consider the offer in due course + t. marshall hahn jr. georgia-pacific 's chairman and chief executive said in an interview that all terms of the offer are negotiable + he added that he had spoken with mr. <unk> whom he referred to as a friend by telephone monday evening + i 'm hopeful that we 'll have further discussions mr. hahn said + on wall street takeover stock traders bid nekoosa 's stock well above the georgia-pacific bid assuming that nekoosa 's will either be sold to a rival bidder or to georgia-pacific at a higher price as much as $ N a share according to some estimates + yesterday nekoosa common closed in composite new york stock exchange trading at $ N up $ N on volume of almost N million shares + georgia-pacific closed down $ N at $ N in big board trading + takeover stock traders noted that with the junk-bond market in disarray georgia-pacific 's bid is an indication of where the takeover game is headed namely industrial companies can continue bidding for one another but financial buyers such as leveraged buy-out firms will be at a disadvantage in obtaining financing + the way the world is shaping up the strategic buyer is going to be the rule and the financial buyer is going to be the exception said one trader + for the paper industry specifically most analysts said the deal will spur a wave of <unk> takeovers possibly involving such companies as union camp corp. federal <unk> co. and mead corp + the analysts argued that georgia-pacific 's offer the first hostile bid ever among major players in the paper industry ends the <unk> <unk> on hostile bids and will push <unk> to look closely at the industry 's several attractive takeover candidates + consolidation has been long overdue + it was just the culture of the industry that kept it from happening + the georgia-pacific offer has definitely changed the landscape said gary <unk> of oppenheimer & co + added mark rogers of prudential-bache securities inc. it 's much easier to be second + a georgia-pacific acquisition of nekoosa would create the largest u.s. forest-products company + based on N sales georgia-pacific ranked third at $ N billion behind weyerhaeuser co. at $ N billion and international paper co. at $ N billion + nekoosa ranked <unk> with sales of $ N billion + the combined company would have had N sales of $ N billion + but such a combination also presents great risks + at a time when most analysts and industry consultants say pulp and paper prices are heading for a dive adding capacity and debt could squeeze georgia-pacific if the industry declines more than the company expects + moreover any unexpected strengthening of the dollar would hurt georgia-pacific because two of nekoosa 's major product lines <unk> which is used to make shipping boxes and market pulp are exported in large quantities + nobody knows how deep the cycle is going to be said rod young vice president of resource information systems inc. a <unk> mass. <unk> firm + depending on how far down you go it may be difficult to pay off that debt + one person familiar with georgia-pacific said the acquisition would more than double the company 's debt of almost $ N billion + it also could be a drag on georgia-pacific earnings because the roughly $ N billion in goodwill the amount by which the bid exceeds nekoosa 's book value of $ N billion will have to be <unk> from earnings over a period of decades + georgia-pacific 's mr. hahn said that a combined operation would allow savings in many ways + the two companies each produce market pulp <unk> and white paper + that means goods could be manufactured closer to customers saving shipping costs he said + moreover production runs would be longer cutting <unk> from adjusting machinery between production cycles + and georgia-pacific could save money in selling pulp because the company uses its own sales organization while nekoosa employs <unk> agents + mr. hahn said georgia-pacific has accounted in its strategy for a significant downturn in the pulp and paper industry an event that he said would temporarily <unk> earnings + but he said that even under those conditions the company still would realize a savings of tens of millions of dollars in the first year following a merger + the fit is so good we see this as a time of opportunity he said + georgia-pacific which has suspended its <unk> program would finance the acquisition with all bank debt provided by banks led by bankamerica corp + georgia-pacific owns N nekoosa shares and would need federal antitrust clearance to buy more than $ N million worth + u.s. clearance also is needed for the proposed acquisition + for nekoosa defense options may be undercut somewhat by the <unk> state of the junk-bond market which limits how much value the target could reach in a <unk> recapitalization + the company 's chairman mr. <unk> and a group of advisers met at the offices of <unk> lipton rosen & katz a law firm specializing in takeover defense + nekoosa also is being advised by goldman sachs & co + georgia-pacific 's advisers are <unk> <unk> & co. which stands to receive a $ N million fee if the takeover succeeds and the law firm of <unk> & sterling + people familiar with nekoosa said its board is n't likely to meet before the week after next to respond to the bid + the board has N business days to respond + in addition to the usual array of defenses including a so-called poison pill and a <unk> board nekoosa has another takeover defense a maine state law barring hostile bidders from <unk> acquired businesses for five years + nekoosa is incorporated in maine + georgia-pacific has filed a lawsuit in federal court in maine challenging the poison pill and the maine merger law + nekoosa 's poison pill allows shareholders to vote to <unk> it but georgia-pacific is n't likely to pursue such a course immediately because that would take N to N days and would n't affect the provisions of the maine law + among companies mentioned by analysts as possible <unk> for nekoosa are international paper weyerhaeuser canadian pacific ltd. and macmillan <unk> ltd + i 'm sure everybody else is putting pencil to paper said <unk> <unk> an analyst with first manhattan co + international paper and weyerhaeuser declined to comment + canadian pacific could n't be reached for comment and macmillan <unk> said it has n't any plans to make a bid for nekoosa + investors were quick to spot other potential takeover candidates all of which have strong cash flows and low-cost operations + among paper company stocks that rallied on the big board because of the offer were union camp up $ N to $ N federal <unk> up $ N to $ N mead up $ N to $ N and temple inland inc. up $ N to $ N + in over-the-counter national trading <unk> inc. jumped $ N to $ N + some analysts argued that there wo n't be a flurry of takeovers because the industry 's continuing <unk> program is eating up available cash + moreover some analysts said they expect a foreign paper company with deeper pockets than georgia-pacific to end up acquiring nekoosa <unk> to the rest of the industry that hostile bids are <unk> + this is a one-time event said lawrence ross of painewebber inc. referring to the georgia-pacific bid + but many analysts believe that given the <unk> of paper companies ' cash flows as well as the <unk> consolidation of the paper industry in europe there will be at least a few more big hostile bids for u.s. companies within the next several months + the buyers these analysts added could be either foreign or other u.s. concerns + the georgia-pacific bid may open the door to a new era of consolidation in the paper industry said mark <unk> of shearson lehman hutton inc + i do n't think anyone is now immune from takeover said robert <unk> of duff & phelps inc. chicago + he added every paper company management has to be saying to itself before someone comes after me i 'm going to go after somebody + prudential-bache 's mr. <unk> said he does n't see the industry 's <unk> program <unk> takeover activity + several projects he said are still on the drawing board + moreover it 's a lot cheaper and <unk> to buy a plant than to build one + indeed a number of analysts said that japanese paper companies are <unk> to acquire additional manufacturing capacity anywhere in the world + some predicted that nekoosa will end up being owned by a japanese company + meanwhile shearson lehman 's mr. <unk> said that to stay competitive the u.s. paper industry needs to catch up with the european industry + since the <unk> wave of friendly takeovers was completed in the u.s. in N there have been more than N mergers and acquisitions within the european paper industry he said + <unk> inc. <unk> ill. and <unk> research inc. los angeles said the food and drug administration granted full marketing approval for a new drug for the treatment of a condition in which the heart <unk> between N and N <unk> a minute + the condition known as <unk> <unk> <unk> leads to <unk> and <unk> + the typical healthy heart <unk> N times a minute + the drug called <unk> returns the heart to a normal <unk> within seconds according to <unk> + <unk> research developed the drug and licensed it to <unk> for sale in the u.s. and canada + private industry 's labor costs rose N N in the third quarter matching the second-quarter pace as health insurance costs continued to soar the labor department said + the increase in wage and benefit costs in the third quarter was greater than the N N rise reported for the third quarter of N + wage increases and overall compensation increases are beginning to <unk> upward a little bit said <unk> <unk> a labor economist at the conference board a business research organization + one would have thought this would have happened two or three years ago as the labor market tightened + it is a considerably delayed reaction and it 's not a severe one at all she added + the new data underscored the <unk> of the nation 's health-care cost problem + in the N months ended in september wages and salaries of private-sector workers rose N N while health insurance costs <unk> by N N + the consumer price index climbed N N in the same period + despite the big increases in health-care costs wages still account for a far greater share of overall labor costs + the overall private-sector employment cost index which includes both wages and benefits rose N N in the N months ended in september compared with N N for both the N months ended in june and the N months ended september N + labor costs are climbing at a far more rapid pace in the health care industry than in other industries + for instance wages of private-sector hospital workers leaped N N in the N months ended in september compared with N N for workers in all industries + in the third quarter wages and salaries in all private industry rose N N compared with N N increases in both the second quarter and in the third quarter of N + for the past five years unions have n't managed to win wage increases as large as those granted to <unk> workers + for private-sector union workers the cost of wages and benefits rose N N in the third quarter + for <unk> workers the costs rose N N + labor costs continued to rise more rapidly in service industries than in <unk> industries the report showed + it also found them rising much more in the northeast than elsewhere + including employees of state and local but not the federal governments the employment cost index rose N N in the third quarter compared with a N N rise in the same quarter in N + the index rose N N in the second quarter + for the N months ended in september this index was up N N + it rose N N for the N months ended in june and N N in the N months ended in september N + unlike most economic indicators none of these figures are adjusted for seasonal variations + <unk> inc. said it is <unk> N employees as part of a restructuring aimed at producing pretax savings of $ N million annually + under the plan <unk> said it will sell certain assets and businesses that do n't meet strategic and profitability objectives + the des <unk> ill. chemical coatings concern which has about N employees world-wide said it plans to sell its domestic rigid container packaging and flexible <unk> businesses and its chicago heights ill. <unk> plant + the company said it plans to use the sale proceeds to invest in business opportunities more closely identified with the company 's <unk> direction + stateswest airlines phoenix ariz. said it withdrew its offer to acquire mesa airlines because the <unk> n.m. carrier did n't respond to its offer by the close of business yesterday a deadline stateswest had set for a response + however stateswest is n't abandoning its pursuit of the <unk> mesa + stateswest which has a N N stake in mesa said it may purchase more mesa stock or make a tender offer directly to mesa shareholders + stateswest had proposed acquiring mesa for $ N a share and one share of a new series of stateswest N N convertible preferred stock it values at $ N a share + earlier mesa had rejected a general proposal from stateswest to combine the two carriers in some way + stateswest serves N cities in california arizona and nevada + mesa flies to N cities in new mexico arizona wyoming colorado and texas + a <unk> new takeover deal sparked a big rally in stock prices which buoyed the dollar + bond prices also edged higher + georgia-pacific 's $ N billion bid for great northern nekoosa helped drive the dow jones industrial average up N points to N in active trading + the dollar drew strength from the stock market 's climb + long-term bond prices rose despite <unk> about what a key economic report will show today + analysts said the offer for great northern nekoosa broke the pall that settled over the takeover business for the past three weeks in the wake of the collapsed ual corp buy-out + great northern nekoosa soared $ N a share to $ N substantially above the $ N a share georgia-pacific is offering + that indicates speculators are betting a higher offer is in the wings + prices of other paper makers rose sharply although georgia-pacific fell $ N a share to $ N + despite all the furor over program trading program trading played a big role in yesterday 's rally + some traders point out that as the big brokerage firms back out of program trading for their own accounts or for clients opportunities increase for others to engage in the controversial practice + that 's what happened yesterday + the rally notwithstanding there are plenty of worries about the short-term course of stock prices + a slowing economy and its effect on corporate earnings is the <unk> concern of many traders and analysts + unless the federal reserve <unk> interest rates soon to stimulate the economy profits could remain disappointing + yesterday 's major economic news a N N rise in the september index of leading economic indicators had little impact on financial markets + but the next important piece of news on the economy 's health this morning 's release of the national purchasing manager 's survey for october could prompt investors into action + a report late yesterday that the <unk> purchasing managers survey showed increased economic activity in that part of the country cut into <unk> gains + if the national survey confirms a pickup in the manufacturing sector it could further depress bond prices while <unk> stock prices and the dollar + meanwhile bond investors are <unk> under the <unk> of a national debt ceiling debate + although the treasury is expected to announce details of its november quarterly refunding operation today the nov. N schedule could be delayed unless congress and the president act soon to lift the nation 's debt ceiling + in major market activity + stock prices rallied in active trading + volume on the new york stock exchange totaled N million shares + advancing issues on the big board surged ahead of decliners N to + bond prices rose + the treasury 's benchmark 30-year bond gained less than a quarter of a point or less than $ N for each $ N of face amount + the yield on the issue slipped to N N + the dollar gained against most foreign currencies + in late afternoon new york trading the dollar was at N marks and N yen compared with N marks and N yen late monday + <unk> s.a. a diversified construction concern based in paris said its consolidated profit for the N first half after payments to minority interests surged to N million french francs $ N million from N million francs a year earlier + revenue rose N N to N billion francs from N billion francs + the company did n't specify reasons for the strong earnings gain + but <unk> said its first-half profit is n't <unk> of the full-year trend because of the highly seasonal nature of many of the company 's activities + for all of N <unk> had consolidated profit of N million francs after payments to minority interests on revenue of N billion francs + the group has forecast N revenue of N billion francs + <unk> network inc. said it completed its acquisition of <unk> cos. for about $ N million + <unk> agreed to pay $ N and <unk> <unk> share for each of <unk> 's N million fully diluted shares + the acquisition brings together the two largest competitors to home shopping network inc. which now reaches more viewers than any other company in the video shopping industry + among them home shopping <unk> and <unk> already control most of that young and fast-growing market which last year had sales of about $ N billion + coast savings financial inc. reported a third-quarter loss citing a previously announced capital restructuring program + the los angeles thrift holding company said it had a loss of $ N million or $ N a share for the quarter ended sept. N + coast earned $ N million or N cents a share in the year-ago quarter + the year-ago results have been restated to comply with government regulations + the restructuring program is designed to increase the company 's tangible capital ratio + it includes removing $ N million in good will from the books issuing $ N million in preferred stock and <unk> an exchange offer for $ N million in convertible bonds + during the third quarter the company charged about $ N million against earnings in reducing goodwill added $ N million to its general loan loss reserves and established a $ N million reserve for its high-yield bond portfolio + the company said its junk-bond portfolio after these moves had been reduced to less than N N of assets + philip morris cos. is launching a massive corporate advertising campaign that will put the tobacco giant 's name in tv commercials for the first time since the early 1950s when it stopped advertising its <unk> cigarette brand on television + the campaign a <unk> celebration of the <unk> anniversary of the bill of rights does n't mention cigarettes or smoking cigarette ads have been prohibited on television since N + but even before it begins the campaign is drawing fire from <unk> advocates who <unk> philip morris 's attempt to bolster its beleaguered image by <unk> itself in the document that is a <unk> of american democracy + philip morris which became the u.s. 's largest food company last year with its $ N billion acquisition of kraft inc. seems determined to <unk> beyond its roots in <unk> country + the company 's research suggests that its name recognition among most consumers remains unusually low although its array of brands including maxwell house coffee <unk> <unk> <unk> and miller beer blanket supermarket shelves + the company is expected to spend about $ N million a year on its two-year corporate campaign created by wpp group 's ogilvy & mather unit in new york + the initial spots will appear during morning and prime-time news shows + philip morris hopes that by taking its bill of rights theme to the <unk> in addition to publications it will reach the <unk> possible audience + until now its corporate ads mainly promoting its <unk> of the arts have appeared almost exclusively in newspapers and magazines + most people whether in toledo tucson or <unk> have n't got a clue who we are says guy l. smith philip morris 's vice president of corporate affairs + if they think well of the company through our support of the bill of rights it follows they 'll think well of our products + mr. smith says the bill of rights commercial which <unk> the themes of liberty and freedom of expression is n't designed to have any special appeal for smokers + although philip morris typically tries to defend the rights of smokers with <unk> arguments this has nothing to do with cigarettes nor will it ever the spokesman says + but some <unk> activists disagree <unk> anger at what they see as the company 's attempt to purchase <unk> by association + i 'm <unk> because this company is portraying itself at the heart of american culture and political freedom and in fact it 's a killer says michael <unk> former chairman of the federal trade commission and a <unk> critic + it should be treated like the <unk> drug mafia not the founding <unk> + mr. <unk> adds that the new commercial <unk> perfectly with major aspects of philip morris 's political strategy + these include trying to protect its print advertising by <unk> the first amendment and wooing blacks by portraying itself as a <unk> of civil rights + the commercial features among others the voice of martin <unk> king jr. the <unk> civil rights leader + many marketers say philip morris 's approach will be effective but they agree that the ads ' implied smoking message is <unk> + this is <unk> <unk> advertising that really says smokers have rights too says al <unk> chairman of <unk> & <unk> inc. a greenwich conn. marketing strategy firm + this is designed to get the <unk> in a circle and defend the smoking franchise + richard <unk> a partner at boston consulting group adds it 's very popular to <unk> yourself in the flag these days + if you can do that and at the same time send a message that supports your business that 's brilliant + rjr nabisco inc. and american brands inc. say they have no plans to follow philip morris 's lead + indeed rjr nabisco is currently under fire for having sent <unk> <unk> touting its now brand to consumers who smoke american brands ' <unk> + despite the criticism philip morris 's corporate campaign runs little risk of getting <unk> off the tube + they are n't showing james madison taking a <unk> or lighting up says laurence tribe a professor of constitutional law at harvard university + all they are trying to do is borrow some of the legitimacy of the bill of rights itself + technology stocks <unk> up helping the over-the-counter market rise from its recent doldrums + the nasdaq composite index surged N or about N N to N + it was the market 's biggest gain since rising more than N points on oct. N + advancing otc stocks <unk> decliners by N to N + but the move lagged a stronger rise in new york stock exchange issues + the big board 's composite index was up more than N N and the dow jones industrial average jumped N N + nasdaq 's gain was led by its biggest industrial stocks + the nasdaq N rose N to N + the financial index of N biggest banks and insurance issues added N to N + other strong sectors were indicated in gains of the transportation index up N to N and the utility index up N to N + national market system volume improved to N shares from N million monday + many of nasdaq 's biggest technology stocks were in the <unk> of the rally + microsoft added N N to N N and <unk> systems rose N N to N N + intel was up N N to N N + but traders who watch the stocks warned the rise may be yet another one-day phenomenon + technology stocks <unk> the brunt of the otc market 's recent sell-off and traders say it 's natural that they rebound sharply now that the market has turned around + but they caution conservative investors would do well to sell into the strength + they are always the first to be sold when people are taking profits because people are most scared of the high-technology stocks said robin west director of research for <unk> <unk> 's <unk> division which specializes in emerging growth stocks + the technology group includes many of the otc market 's biggest stocks which dominate the <unk> nasdaq composite index + analysts say rallies in the group historically have lifted the market while weakness in the sector often sank <unk> share prices broadly + but increasing volatility in the sector has exhausted investors who try to follow its <unk> and swings + the stocks have been <unk> repeatedly by inventory <unk> and disappointing earnings as the industry <unk> and <unk> + some even claim the group has become a lagging not leading indicator + the technology sector of the dow jones equity market index has risen only about N N this year while the nasdaq composite index has gained N N + while the composite index lost less than a third of its <unk> gains in the market 's recent decline the technology group 's gains were more than <unk> + the otc technology sector is far from a <unk> unit + the group is divided primarily between software semiconductors and computers + while computer stocks have taken the biggest hit from the slowdown in the industry many software and semiconductor stocks have continued to outperform the market + microsoft is up more than N N this year while intel is up more than N N + the technology group is also split between large companies and small with the biggest stocks trading as blue-chip issues in the institutional marketplace while the smaller stocks <unk> on their individual merits or <unk> analysts say + the volatility of smaller technology companies has served the group well overall in recent stock trading according to hambrecht & quist 's technology stock indexes + the brokerage firm tracks technology stocks with its technology index which <unk> only N N in the first nine months of this year + but the firm also tracks smaller technology companies as a <unk> of the larger group + that index which contains technology companies with annual revenues of $ N million or less gained N N by sept. N this year still lagging the s&p N but leading larger technology firms + yesterday bank stocks lagged behind the overall otc market + the nasdaq bank index rose N to N + george <unk> who trades bank stocks for shearson lehman hutton said the stocks tend to fall behind because they are n't traded as much as many other issues + but he added <unk> stocks in general are stalled + the interest-rate <unk> are n't <unk> with the rest of the market because of fears about what the federal reserve will do mr. <unk> said + he said that investors will <unk> the october employment report due out friday for clues about the direction of the economy and the immediate outlook for interest rates + on the other hand mr. <unk> noted that the recent slide in bank and thrift stocks was at least halted yesterday + shearson lehman hutton gave small investors some welcome news by announcing that it would no longer handle <unk> program trades for its accounts + shearson with its in-house order execution system has handled the bulk of such program trades in the over-the-counter market + the trading has been blamed for much of the market 's recent volatility + jaguar topped the <unk> list as its american depository receipts climbed N N to N N with more than N million adrs traded + britain said it would waive its golden share in the luxury auto maker if shareholders vote to allow a suitor to acquire more than N N of the company + the announcement effectively <unk> the british government as an <unk> to a takeover of the company which is being <unk> by general motors and ford + gen-probe was another active takeover stock + it surged N N to N on volume of more than N million shares after the company agreed to be acquired by japan 's chugai pharmaceutical for about $ N million almost double the market price of gen-probe 's stock + <unk> corp. lost N to N after filing for protection from its creditors under chapter N of the federal bankruptcy code + mci communications added N N to N N + the company has <unk> up over $ N million in contracts in the past two days + monday mci announced a $ N million <unk> contract with the investment bank <unk> + yesterday it received a $ N million three-year contract from drexel burnham lambert + florida national banks of fla. slid N N to N N + late monday the federal reserve board said it is delaying approval of first union corp. 's proposed $ N million acquisition of florida national banks pending the outcome of an examination into first union 's lending practices in low-income <unk> + florida national said yesterday that it remains committed to the merger + <unk> industries gained N to N N after it said it agreed to buy <unk> & associates and two affiliates for cash and stock + the value of the transaction was n't disclosed + the companies being acquired provide telecommunications services to the telephone industry + <unk> industries whose stock has suffered steep losses in recent sessions surged N N to N + the stock was one of many in the paper products industry that rose following georgia-pacific 's $ N billion bid for great northern nekoosa + a permanent smoking ban on virtually all domestic airline routes won approval from the house which separately sent to president bush a nearly $ N billion fiscal N bill including the first construction funds for the space station + the smoking prohibition remains attached to a $ N billion transportation bill that must still overcome budget obstacles in congress + but yesterday 's action put to rest any <unk> resistance from tobacco interests + faced with inevitable defeat the once dominant industry declined any recorded vote on the ban which covers all but a fraction of N N of daily flights in the u.s. + the sole exceptions are an estimated N flights of six hours or more beginning or ending in hawaii and alaska + assuming final enactment this month the prohibition will take effect N days later or in early february + on a N roll call the house adopted the underlying transportation measure + but the bill still faces budget questions because it also is the vehicle for an estimated $ N billion in supplemental appropriations for law enforcement and anti-drug programs + the additional spending <unk> the measure more than $ N billion above its prescribed budget ceiling and the house appropriations committee leadership must now seek a waiver in hopes of completing action today + the separate $ N billion bill sent to the white house had budget difficulties too but was saved ultimately by its importance to a broad spectrum of interests in congress and the administration itself + no single bill this year includes more discretionary spending for domestic programs and apart from the space station the measure <unk> far-reaching provisions affecting the federal mortgage market + the current ceiling on home loans insured by the federal housing administration is increased to $ N during fiscal N + and in anticipation of increased lending the cap on fha loan guarantees would rise to approximately $ N billion + separately the bill gives authority to the department of housing and urban development to facilitate the refinancing of high-interest loans subsidized by the government under the so-called section N <unk> program for <unk> families + this provision met early and strong resistance from investment bankers worried about disruptions in their clients ' portfolios + but the promise of at least $ N million in new savings helped to forge a partnership between hud secretary jack kemp and lawmakers wanting to protect their projects elsewhere + the estimated $ N billion for the space station would be double last year 's level and total appropriations for the national aeronautics and space administration would grow N N to nearly $ N billion + a string of costly projects including the <unk> national aerospace plane and the advanced communications technology satellite would continue to be developed within these limits + and while imposing a statutory cap of $ N billion on future spending the bill would give nasa $ N million for the start-up of the <unk> mission a successor to the <unk> space probe + separately the national science foundation is promised a N N increase to bring its appropriations to $ N billion + and while pursuing these initiatives congress and the white house are squeezed too by steady increases $ N million in veteran 's medical care + the result is that all sides resort to <unk> of hand to make room for competing housing and environmental programs and the commitments now will drive excess spending into fiscal N + senior members of the house budget committee are reduced in frustration to raising doomed parliamentary obstacles to individual bills yet admit that much of the <unk> now stems from the fiscal <unk> associated with their own summit agreement with the white house this past spring + it 's hard to get the administration 's attention on anything said rep. bill <unk> r. minn. because the whole agreement was built on <unk> + among the subsidies continued in the transportation bill is $ N million to maintain commercial air service for an estimated N communities often in rural areas + senate appropriations committee chairman robert byrd d. <unk> strongly resisted deeper cuts sought by the house + but at a time when the white house wants to kill the entire program republicans have been among its leading <unk> + sen. pete <unk> r. n.m. the ranking republican on the senate budget committee used his influence to preserve more than $ N in subsidies for air service to <unk> fe n.m. and more than $ N million would go for service to eight communities in the western nebraska district of gop rep. virginia smith on the house appropriations committee + <unk> express an independent airline serving much of nebraska estimates that nearly N N of its revenues come from the subsidies that in some cases exceed the cost of a ticket + for example a passenger can fly from <unk> neb. to denver for as little as $ N to $ N according to prices quoted by the company + but given the few number of users the cost to the federal government per passenger is estimated at $ N according to house and senate appropriations committees + the house action yesterday came as the senate remained mired in difficulties over a $ N billion measure covering the budgets for the state commerce and justice departments in fiscal N + the compromise bill passed the house last week but has now provoked <unk> fights with the senate foreign relations committee which <unk> protects its prerogatives over operations at the state department + the same <unk> can breed confusion however in the absence of any authorization bill this year + house and senate <unk> sought to establish a nov. N deadline after which their bill would become the last word on how funds are distributed + but on a N roll call this provision was stripped from the bill last night after foreign relations chairman <unk> <unk> d. <unk> complained that it was an <unk> on exclusive powers vested in his panel for more than three decades + coda energy inc. said it arranged a $ N million credit facility with ncnb texas national bank a unit of ncnb corp. of charlotte n.c + the dallas oil and gas concern said that $ N million of the facility would be used to consolidate the company 's $ N million of existing bank debt to repurchase N million of its N million shares outstanding of series d convertible preferred stock and to purchase a N N <unk> interest in certain oil and gas properties from one of its existing lenders national canada corp + the remaining $ N million can be used over three years for oil and gas acquisitions the company said + ted <unk> coda 's president said the loan carries an interest rate of prime plus one percentage point with N N of the company 's net oil and gas revenue each month dedicated to repayment + the company put up virtually all of its oil and gas properties as collateral he said + general dynamics corp. was given an $ N million air force contract for <unk> aircraft and related equipment + loral corp. 's defense systems division received a $ N million air force contract for a <unk> weapons system <unk> + southern air transport inc. won $ N million in air force and navy contracts for transportation services + international business machines corp. was given a $ N million air force contract for satellite data systems equipment + directed technologies received a $ N million defense advanced research projects agency contract for advanced <unk> systems research + <unk> international inc. got a $ N million defense <unk> agency contract for combat <unk> <unk> + santa fe pacific was the kind of story wall street loved + since the value of its assets was n't known analysts were free to pick a number + in one of many <unk> scenarios bear stearns 's gary <unk> wrote in march that its real estate alone had a value of $ N billion + throw in its railroad minerals pipeline and oil assets he and others argued and the chicago-based conglomerate should be worth N a share + and why should holders expect to realize that presumed worth + that was another reason the street loved santa fe + with real estate experts olympia & york and samuel <unk> 's itel owning close to N N of santa fe 's stock management was under pressure in a favored phrase of wall street to quickly maximize values + but value it turns out is only what a buyer will pay + and with the company 's recent announcement that it is contemplating a partial sale of its real estate the values suddenly look poorer + santa fe has disclosed that it is negotiating to sell a N N interest in its real estate unit to the california public employees retirement system for roughly $ N million + since the real estate unit also includes debt the <unk> value of the real estate itself is close to $ N billion + the implied current net asset value of N per share is well below the N level that the street believed painewebber says + the upside was in the <unk> real estate which is no longer an <unk> + so what is santa fe worth + if the railroad is valued on a private market basis at the same multiple of earnings as in the recent sale of cnw it would have a value of $ N billion + a compromise between bulls and bears puts remaining assets and cash including its N N stake in its publicly traded pipeline at $ N billion + santa fe also has $ N billion in debt + in addition its railroad lost a $ N million antitrust suit which is on appeal and which analysts say could be settled for one-third that amount + that <unk> out to about $ N a share for the company on a private market basis + but santa fe currently trading at N N is n't likely to realize private market values by selling assets because the tax against it would be onerous + its plan instead is to spin off the remainder of its real estate unit and to possibly do the same with its mining and energy assets + robert d. <unk> santa fe 's chairman argues that since its businesses are valued in different ways the sum of the parts may be greater than the whole + but it is n't clear why that should be so + the spinoff argument after all <unk> the current notion that assets are worth more to private buyers than to public shareholders + and real estate usually has n't traded well under public ownership + salomon brothers says we believe the real estate properties would trade at a discount after the realty unit is spun off + and what about the cost and risk of waiting to realize the hypothetical private market values + some analysts remain bullish + mr. <unk> of bear stearns says he is <unk> the worth of the company 's assets and in the meantime is sticking to his buy recommendation on the belief that he will find values of N a share + he adds if for any reason i do n't have the values then i wo n't recommend it + first boston 's <unk> anne <unk> values santa fe at N down from her earlier estimate of N + her recent report <unk> the stock as a hold + but it appears to be the sort of hold one makes while heading for the door + <unk> from the report the stock 's narrow discount to asset valuation makes it a relatively <unk> investment at current prices especially given the risk that our projections could be on the aggressive side + chairman <unk> says the california pension fund is getting a bargain price that would n't have been offered to others + in other words the real estate has a higher value than the pending deal suggests + since most of the unit 's real estate is in california the pension fund will be a useful political ally in a state where development is often held <unk> to <unk> boards + and as mr. <unk> says with itel and <unk> on the unit 's board the real estate will be run by a very unusual group to say the least + it is possible then that santa fe 's real estate even in a state <unk> by earthquakes could one day fetch a king 's <unk> + but as drexel analyst linda dunn notes its properties will be developed over N to N years + so despite wall street 's <unk> talk of quickly <unk> values holders could be in for a long wait + santa fe pacific nyse symbol <unk> + business railroad natural resources and real estate + year ended dec. N N + revenue $ N billion + net loss $ N million N cents a share + third quarter sept. N N + net income N cents a share vs. net loss of $ N a share + average daily trading volume N shares + orkem s.a. a french state-controlled chemical manufacturer is making a friendly bid of N pence $ N a share for the N N of u.k. specialty chemical group coates brothers plc which it does n't already own the two sides said + the offer which values the whole of coates at # N million has already been accepted by coates executives and other shareholders owning N N of the company + the acceptances give orkem a controlling N N stake in the company + orkem and coates said last wednesday that the two were considering a merger through orkem 's british subsidiary orkem coatings u.k. ltd + orkem france 's third-largest chemical group said it would fund the acquisition through internal resources + the takeover would be followed by a restructuring of orkem 's u.k. unit including the addition of related orkem businesses and possibly further acquisitions + orkem said it eventually would seek to make a public share offering in its u.k. business + intelogic <unk> inc. said it is exploring alternatives to maximize shareholder value including the possible sale of the company + but <unk> b. edelman who controls about N N of the san antonio texas <unk> company insisted that the announcement did n't have anything to do with the ongoing battle for control of datapoint corp + any sale of intelogic could have an impact on the battle between mr. edelman and new york attorney martin ackerman for control of datapoint + intelogic holds N N of datapoint 's common shares outstanding + mr. edelman said the decision has nothing to do with <unk> ackerman + mr. ackerman contended that it was a direct response to his efforts to gain control of datapoint + intelogic was spun off from datapoint four years ago shortly after mr. edelman took control of datapoint + marks & spencer plc reported a N N gain in first-half pretax profit mainly because of improving performances in the u.k. and continental europe + in the six months ended sept. N pretax profit at the british clothing and food retailer rose to # N million $ N million from # N million a year ago + the results <unk> analysts ' forecasts which averaged around # N million and marks & spencer responded in trading on london 's stock exchange with an eight pence rise to N pence + profit after tax and minority interest but before extraordinary items rose N N to # N million per-share earnings rose to five pence from N pence + marks declared an interim per-share dividend of N pence compared with N pence a year earlier + sales increased N N to # N billion from # N billion while operating profit climbed N N to # N million from # N million + sales in north america and the far east were inflated by acquisitions rising N N to # N million + operating profit dropped N N however to # N million + brooks brothers which marks bought last year saw operating profit drop in half to # N million + federal and state thrift <unk> said they saw evidence of criminal wrongdoing in the collapse of lincoln savings & loan association and a california regulator described an attempted <unk> by deputies of chief federal regulator danny wall + in a <unk> day of hearings before the house banking committee the <unk> described finding <unk> documents a <unk> panamanian subsidiary millions of dollars <unk> into a swiss bank and a <unk> attitude by mr. wall 's deputies one of whom was portrayed as acting more like a public-relations man for the thrift than a federal regulator + a california official also said he sent the federal bureau of investigation a <unk> of documents relating to a previously reported $ N contribution from lincoln 's parent <unk> by sen. alan cranston d. calif + federal examiner alex <unk> said lincoln 's operations amounted to <unk> debt to provide a <unk> life style for its owners + another federal examiner john <unk> said lincoln 's principal owner charles keating jr. and his family drew off at least $ N million from the thrift in salaries bonuses and proceeds from securities sales in the N N years before federal authorities seized it earlier this year + lincoln 's collapse may cost taxpayers as much as $ N billion according to estimates making it the most expensive thrift failure in history + i think there 's overwhelming evidence to indicate probable criminal activity said mr. <unk> who participated last year in an examination of the irvine calif. thrift + he said the evidence pointed to wrongdoing by mr. keating and others although he did n't <unk> any specific violation + richard <unk> a california state official who last year examined lincoln 's parent american continental corp. said he also saw evidence that crimes had been committed + it sure <unk> like it he said + he said N N of the loans he <unk> were dead meat on the day they were made + the state examiner also said supervisors of a parallel federal examination seemed so reluctant to demand write-downs of lincoln 's bad loans that he immediately grew <unk> + later on my concerns about a <unk> became even more serious he said + he called the sour loans <unk> and added you opened the file up and it just jumped at you + leonard <unk> a washington attorney for lincoln 's parent corporation said in an interview we deny any criminal behavior by the association or its officers + those who testified yesterday have consistently maintained that anyone who did n't agree with them is part of a <unk> a <unk> or the subject of excessive influence mr. <unk> said + we simply do n't agree with that or the findings of their investigation + mr. wall 's deputies complained that they had n't been given an opportunity to respond to the criticism brought out during the banking committee 's hearings which committee chairman henry gonzalez d. texas has used as a forum to <unk> mr. wall 's handling of the affair and to demand that he step aside from his job + a couple of things mr. <unk> said were at least misleading said kevin o'connell one of the washington regulators responsible for the handling of lincoln + in an interview he said federal regulators eventually declared one of the loans the state regulator cited to be a total loss and forced lincoln to make an $ N million downward adjustment on another + our response to the <unk> would simply be look what happened another washington official alvin <unk> said in an interview + federal officials seized the association in april a day after the parent corporation entered bankruptcy-law proceedings + the government later brought a $ N billion fraud suit against mr. keating and others + rep. gonzalez has complained that regulators waited far too long however ignoring a recommendation from regional officials to place lincoln into <unk> two years before it failed + he took the reckless course of ignoring the evidence rep. gonzalez said + state thrift examiner eugene <unk> said he found the chief federal examiner steve scott to be totally <unk> in one allegedly fraudulent series of transactions + frankly it was like he worked for the lincoln public-relations department mr. <unk> testified + and david <unk> a federal examiner who worked under mr. scott said he found his chief oddly upbeat about lincoln + asked to comment a spokesman for mr. scott said mr. scott has spoken to his attorney who has advised him not to talk to anybody + mr. <unk> said that a day or two before lincoln 's parent entered bankruptcy proceedings he and other <unk> saw a truck with a sign on it that said it was from the document destruction center + we observed at least two large plastic bags of <unk> paper loaded into this truck + mr. <unk> said the paper had been donated to a charitable organization that sells it for recycling + they <unk> it simply because it contained financial information about their creditors and <unk> + mr. <unk> said his <unk> were aroused by several foreign investments by lincoln including $ N million paid to credit suisse of switzerland an $ N million interest in saudi european bank in paris a $ N million investment in a <unk> trading company and a recently discovered holding in a <unk> company <unk> holdings + mr. <unk> said i can see why an s&l examiner would regard these as unusual activities but said the overseas investments essentially broke even for the s&l + ltv steel co. is boosting the prices of flat rolled steel products by an average of N N following a recent erosion in the prices of such crucial steel products + the big questions are whether the increase effective jan. N N will stick and whether other major steelmakers will follow suit + it is widely expected that they will + the increase is on the base price which is already being discounted by virtually all steel producers + but ltv 's move marks the first effort by a major steelmaker to counter the free fall in spot prices + major steel producers are selling cold rolled sheet steel at about $ N a ton compared with a peak price of $ N a ton in N + <unk> companies are receiving even less per ton + ltv 's planned increase which was announced in an oct. N memo to district managers does n't affect <unk> steel or <unk> plate + ltv confirmed the <unk> plan saying the move is designed to more accurately reflect the value of products and to put steel on more equal footing with other commodities + a spokesman for ltv steel which is a unit of dallas-based ltv corp. noted that steel prices adjusted for inflation increased only N N between N and the fourth quarter of N while the prices of other industrial commodities increased nearly five times as much + at the same time steelmakers are trying to invest more to modernize technology and make themselves more competitive + but analysts say the company is also trying to prevent further price drops + moreover they note that ltv may be trying to send a signal to major customers such as chrysler corp. and <unk> corp. that steelmakers need more money + both companies are in the process of negotiating contracts with ltv and others + they ltv may believe this can impact contract negotiations and is their signal to the world that now is the time to get tough on prices said peter marcus an analyst with painewebber inc + mr. marcus believes spot steel prices will continue to fall through early N and then reverse themselves + he is n't convinced though that the price decline reflects falling demand because the world economy remains relatively strong + and while customers such as steel service centers are continuing to reduce inventories through the fourth quarter they eventually will begin <unk> up again he notes + it wo n't be clear for months whether the price increase will stick + steelmakers announced a round of <unk> increases last year but began offering sizable discounts over the summer + in fact ltv was the first steelmaker to publicly boost discounts for buyers of cold rolled sheet steel and hot-dipped galvanized sheet steel + in composite new york stock exchange trading yesterday ltv common shares fell N cents to close at $ N + the treasury plans to raise $ N billion in new cash with the sale monday of about $ N billion in short-term bills to redeem $ N billion in maturing bills + however the treasury said it will postpone the auction unless it has assurances of enactment of legislation to raise the statutory debt limit before the scheduled auction date + the offering will be divided evenly between 13-week and 26-week bills maturing on feb. N N and may N N respectively + tenders for the bills available in minimum $ N denominations must be received by N p.m. est monday at the treasury or at federal reserve banks or branches + j.c. penney co. is extending its involvement in a televised <unk> service by five to N years + shop television network inc. of los angeles said penney agreed to continue its exclusive arrangement with shop television which does the production marketing and cable distribution for the j.c. penney television shopping channel + the channel reaches N million homes a penney spokesman said + michael rosen president of shop television said penney decided to extend its involvement with the service for at least five years + if by that time the network reaches N million homes the contract will be renewed for five more years + earlier this year penney abandoned another home shopping venture <unk> corp. after investing $ N million in it + the company took a $ N million charge in the fiscal first quarter ended april N related to <unk> the service + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + <unk> <unk> <unk> plants to produce the billion-dollar idaho potato + <unk> set out to <unk> that feat <unk> and <unk> with new life forms + in N james watson and his colleagues <unk> the double <unk> of dna <unk> acid the genetic key to <unk> + <unk> years later two california <unk> stanley cohen and herbert boyer made <unk> dna <unk> a <unk> 's gene into bacteria which then <unk> <unk> genes + when boyer met robert <unk> an <unk> <unk> in N they saw dollar signs + with $ N apiece and an injection of outside capital they formed genentech inc + commercial <unk> was born + genentech 's first product a brain protein called <unk> proved its technology + the next to be <unk> human insulin had market potential and genentech licensed it to eli lilly which produced N N of the insulin used by N million u.s. diabetics + their laboratory credentials established boyer and <unk> headed for wall street in N + at the time genentech had only one profitable year behind it a modest $ N on revenue of $ N million in N and no product of its own on the market + nonetheless the $ N million issue they <unk> in N opened at $ N and leaped to $ N within N minutes + the trip from the test tube was not without <unk> + boyer and cohen for instance both still university researchers had to be talked into applying for a patent on their <unk> technique and then the patent office refused to grant it + that judgment in turn was reversed by the u.s. supreme court leaving cohen and boyer holding the first patents for making <unk> dna now assigned to their schools + <unk> now is an <unk> part of the drug business + genentech 's N sales were $ N million both from licensing and its own products + the portfolio unit of the french bank group credit lyonnais told stock market regulators that it bought N shares of cie. de navigation mixte apparently to help fend off an unwelcome takeover bid for the company + earlier yesterday the societe de <unk> <unk> was told that a unit of <unk> s.a. also bought navigation mixte shares this purchase covering more than N shares + both companies are allies of navigation mixte in its fight against a hostile takeover bid launched last week by cie + financiere de paribas at N french francs $ N a share + navigation mixte 's chairman had suggested that friendly institutions were likely to buy its stock as soon as trading opened monday + the credit lyonnais purchase for N regular common shares and N newly created shares is valued at about slightly more than N million french francs + unocal corp. los angeles said it and <unk> de venezuela s.a. would create a petroleum marketing and refining general partnership in the midwest + the joint venture <unk> co. would generate total annual revenue of about $ N million and have N employees a unocal spokesman said + unocal said the venture would enable it to recover more of its refining and marketing investment and prepare for expected growth in exploration production chemicals and other areas + it said financing would consist of $ N million from a private placement obtained through shearson lehman hutton inc. and a $ N million revolving credit line underwritten by chase manhattan bank + in addition to unocal 's N <unk> refinery near <unk> ill. the new venture would control N distribution terminals a <unk> <unk> and packaging plant and N company-owned unocal service stations + it said the venture expected to take control of the facilities dec. N would also serve another N independent unocal gasoline stations + <unk> will supply N barrels of oil a day for the refinery unocal said + mitsubishi heavy industries ltd. said unconsolidated pretax earnings in the fiscal first half surged N N to a record N billion yen $ N million reflecting strong demand for a variety of products + in the period ended sept. N net income rose N N to N billion yen or N yen a share from N billion yen or N yen a share + a year ago the tokyo company had pretax profit of N billion yen + sales amounted to N trillion yen climbing N N from N billion yen + encouraged by the brisk performance mitsubishi plans to raise its per-share dividend to N yen from three yen + company officials said the current robust domestic demand that has been fueling sustained economic expansion helped push up sales of products like ships steel structures power systems and machinery and resulted in sharply higher profit + senate leaders traded proposals aimed at speeding action on legislation to narrow the deficit and raise the federal government 's debt limit but the major <unk> block remains president bush 's proposal to cut the capital-gains tax rate + democrats want the tax provision to be a separate bill subject to the usual procedural obstacles + republicans meanwhile want to try to protect the measure by combining it with two politically popular issues that democrats could find hard to block + the talks between senate majority leader george mitchell of maine and his gop counterpart sen. robert dole of kansas are expected to resume today + last night after meeting with mr. bush and administration officials at the white house mr. dole proposed streamlining the fiscal N deficit-reduction bill now stalled in a house-senate conference committee and passing a long-term extension of the federal debt ceiling without any accompanying amendments + under this plan two provisions currently in the house version of the <unk> bill repeal of both the <unk> insurance program and a controversial N tax provision intended to counter discrimination in <unk> plans would be made into a separate bill + republicans would try to <unk> a capital-gains provision to that legislation hoping the political popularity of its other two parts would <unk> democrats from blocking it + democrats want to avoid having to make that choice by making the capital-gains tax cut an individual bill + sen. mitchell is confident he has sufficient votes to block such a measure with procedural actions + both plans would drop child-care provisions from the house version of the deficit-reduction legislation and let it progress as a separate bill + while that could make it vulnerable to a veto by mr. bush democrats argue that a presidential rejection would give their party a valuable issue in next year 's congressional elections + senate democrats are to meet today to consider the gop proposal + yesterday mr. dole seemed <unk> of the bush administration 's strategy of pushing the capital-gains measure at every chance in the face of democratic procedural hurdles + pushing the issue on legislation needed to avoid default by the federal government he told reporters does n't seem to be very good strategy to me + at N a.m. est today the federal government 's temporary $ N trillion debt limit expired + to avoid default lawmakers must pass legislation raising the limit to $ N trillion from $ N trillion by next wednesday according to the treasury + pressed by chairman dan <unk> d. ill of the house ways and means committee treasury undersecretary robert <unk> told a congressional hearing that the administration would give up its demand for the capital-gains tax cut if faced with a potential default + price stern sloan inc. said it hired an investment banking firm to assist in evaluating restructuring or merger alternatives and reported a net loss of $ N million or $ N a share for the third quarter ended <unk> + these results compare with net income of $ N million or N cents a share for the corresponding period last year + this quarter 's loss includes pretax charges of $ N million on the proposed <unk> of the company 's troubled british subsidiary and $ N million of other write-offs the company said were <unk> and <unk> related to inventory publishing advances and <unk> costs + the publishing concern said it retained the investment banking firm of donaldson lufkin & jenrette securities inc. to act as its financial adviser <unk> in the evaluation of various financial and strategic alternatives including debt refinancing raising capital recapitalization a merger or sale of the company + the company also retained attorney martin p. <unk> a director of the company and former head of the <unk> publishing group as an adviser + net sales for this year 's third quarter were $ N million down from $ N million last year + the company attributed the decrease in part to the exclusion of the company 's british sales from the current year 's figures as a result of the subsidiary 's status as a proposed discontinued operation and in part to lower sales in certain key foreign and domestic accounts + u.k. sales for last year 's quarter were about $ N million + stock prices surged as a multibillion-dollar takeover proposal helped restore market players ' confidence about the prospects for further <unk> + paper and forest-products stocks were especially strong as the offer for great northern nekoosa by georgia-pacific triggered speculation that the industry could be in for a wave of merger activity + the dow jones industrial average climbed N to N even though some late selling caused the market to retreat from session highs + trading was moderate with N shares changing hands on the new york stock exchange + aside from the takeover news big buy orders were placed for blue-chip shares in afternoon trading + traders said the buy programs came from very large institutional accounts that were also active in the stock-index futures markets + at one point almost all of the shares in the <unk> major market index which <unk> the industrial average were sharply higher + some N big board issues advanced in price and only N declined while broader market averages rose sharply + standard & poor 's 500-stock index climbed N to N the dow jones equity market index added N to N and the new york stock exchange composite index climbed N to + great northern surged N N to N N well above georgia-pacific 's offering price of $ N a share amid speculation that other suitors for the company would surface or that the bid would be raised + nearly N million shares or about N N of the company 's shares outstanding changed hands in big board composite trading + with stocks having been battered lately because of the collapse of takeover offers for ual the parent company of united airlines and amr the parent of american airlines analysts viewed the proposal as a psychological lift for the market + the $ N billion bid which had been rumored since last week creates a better feeling that there 's value in the market at current levels and <unk> prospects for a hot tape says a.c. moore director of research at <unk> research corp + traders and analysts alike said the market 's surge also reflected an easing of concerns about volatility because of moves by a number of brokerage firms to curtail or cease stock-index arbitrage + much of the <unk> in stock prices lately has been blamed on arbitrage trading designed to profit from differences in prices between stocks and index futures + people are looking for an ability to try and read the market rather than be <unk> said <unk> a. <unk> manager of equity trading at donaldson lufkin & jenrette + he noted that institutional investors showed pretty general interest in stocks in the latest session + but traders also said <unk> trading contributed to the market 's surge as buy programs boosted prices shortly after the opening and <unk> through the remainder of the session + georgia-pacific fell N N to N N but most paper and forest-products stocks firmed as market players speculated about other potential industry takeover targets + within the paper sector mead climbed N N to N N on N million shares union camp rose N N to N N federal paper board added N N to N N <unk> gained N N to N N stone container rose N to N N and <unk> jumped N N to N N + forest-products issues showing strength included champion international which went up N N to N N weyerhaeuser up N to N N <unk> up N N to N N and <unk> cascade up N to N + the theme of industry consolidation had surfaced earlier this year among drug stocks which posted solid gains in the latest session + pfizer gained N N to N N schering-plough added N N to N N eli lilly rose N N to N N and upjohn firmed N to N + also <unk> <unk> rose N N to N N + an advisory committee of the food and drug administration recommended that the agency approve <unk> the company 's heart drug + two rumored restructuring candidates in the oil industry moved higher chevron which rose N N to N N on N million shares and usx which gained N N to N N + pennzoil is rumored to be <unk> a stake in chevron in order to push for a revamping of the company investor carl icahn has recently increased his stake in usx which separately reported earnings that were in line with expectations + paramount communications which completed the $ N billion sale of its associates corp financial-services unit to ford motor gained N N to N N after losing one point monday amid rumors of a delay + the company said the sale would produce a $ N billion gain in the fourth quarter + bankamerica climbed N N to N after painewebber boosted its investment opinion on the stock to its highest rating + the upgrade reflected the N N decline in shares of the bank since the firm lowered its rating in early october based on the belief the stock had become expensive + sea containers which unveiled a proposed restructuring advanced N to N + the company said it would repurchase half of its common shares at $ N each sell an estimated $ N billion in assets and pay a special <unk> dividend to <unk> holders + shaw industries which agreed to acquire armstrong world industries ' carpet operations for an undisclosed price rose N N to N N + armstrong added N to N N + <unk> corp. rose N to N + the company agreed definitively to be acquired by ogden corp. in a stock swap valued at about $ N million + ogden gained N N to N N + ocean drilling & research dropped N N to N N following news of a restructuring plan that calls for the company to <unk> its drilling business into a separate company and offer a N N to N N stake to the public + the american stock exchange market value index rose N to N + volume totaled N shares + imperial <unk> fell N N to N N in the wake of its third-quarter earnings report + net income was down from a year ago when a gain from the restructuring of a retirement plan boosted <unk> + cilcorp inc. <unk> ill. said it agreed to acquire the environmental consulting and analytical service businesses of hunter environmental services inc. of <unk> conn + the utility holding company said hunter will receive N shares of a new series of cilcorp convertible preferred stock with a face value of $ N million for the businesses + cilcorp will also assume $ N million of hunter 's existing debt + as part of the agreement cilcorp said it will pay hunter $ N million in exchange for agreements not to compete + cilcorp said the businesses to be acquired had revenue of $ N million for the year ended march N + separately cilcorp said it plans to purchase as many as N million shares or N N of its common stock outstanding from time to time on the open market and through privately negotiated transactions + the company which currently has N million common shares outstanding said it has no specific plans for the shares + bush and gorbachev will hold two days of informal talks next month + the president said that he and the kremlin leader would meet dec. N aboard u.s. and soviet naval vessels in the <unk> to discuss a wide range of issues without a formal agenda + a simultaneous announcement was made in moscow + bush said that neither he nor gorbachev expected any substantial decisions or agreements + the <unk> meetings wo n't disrupt plans for a formal summit next spring or summer at which an arms-control treaty is likely to be completed + the two leaders are expected to discuss changes sweeping the east bloc as well as human-rights issues regional disputes and economic cooperation + israel 's army lifted a <unk> around a palestinian town in the occupied west bank ending a <unk> campaign of <unk> cars furniture and other goods to crush a tax <unk> + while residents claimed a victory military authorities said they had confiscated the equivalent of more than $ N million to make up for the unpaid taxes + east german leader krenz arrived in moscow for talks today with gorbachev on restructuring proposals + in east berlin communist party officials considered <unk> new forum the country 's largest opposition alliance as about N demonstrators staged protests in three cities to press demands for democratic freedoms + the house approved a permanent smoking ban on nearly all domestic airline routes as part of a $ N billion transportation bill that must still overcome budget obstacles in congress + the chamber also sent to bush a nearly $ N billion fiscal N measure that includes the first construction funds for a space station + nicaragua 's ortega postponed until today a decision on whether to end a <unk> cease-fire in the conflict with the contra rebels + in washington the senate voted to condemn ortega 's threat to cancel the truce and bush said he would review u.s. policy toward managua including the possibility of renewing military aid to the rebels + chinese leader deng told former president nixon that the u.s. was deeply involved in the turmoil and <unk> <unk> that <unk> beijing last spring + nixon on the fourth day of a private visit to china said that damage to <unk> relations was very great calling the situation the most serious since N + afghanistan 's troops broke through a guerrilla <unk> on the strategic <unk> highway allowing trucks carrying food and other <unk> to reach kabul after a missile attack on rebel <unk> + the <unk> of about N vehicles was the first to make deliveries to the capital in about N days + turkey 's legislature elected prime minister <unk> as the country 's first civilian president since N opening the way for a change of government under a new premier he will select + the vote in <unk> was <unk> by opposition politicians who vowed to oust <unk> + he begins his seven-year term nov. N succeeding <unk> <unk> + south africa 's government dismissed demands by <unk> conservatives the nation 's main opposition party for emergency talks on pretoria 's recent <unk> of dissent + the government also urged whites to <unk> from panic over growing black protests such as the massive <unk> rally sunday on the <unk> of <unk> + researchers in belgium said they have developed a genetic engineering technique for creating hybrid plants for a number of crops such as cotton soybeans and rice + the scientists at plant genetic systems n.v. isolated a gene that could lead to a generation of plants <unk> a <unk> <unk> + a bomb exploded at a leftist union hall in san salvador killing at least eight people and <unk> about N others including two americans authorities said + the blast which <unk> the opposition labor group 's offices was the latest in a series of attacks in el salvador 's <unk> civil war + hungary 's parliament voted to hold a national <unk> on an election to fill the new post of president + the balloting to decide when and how to fill the position which <unk> a collective presidency under a pact signed by the ruling <unk> and opposition groups is to be held <unk> + the state department denied <unk> to a vietnamese man who escaped from his <unk> by <unk> himself to the <unk> housing of a tanker for two days in <unk> <unk> + a spokesman for democratic sen. <unk> of <unk> island said however that the <unk> and <unk> service would review the <unk> 's request + ogden projects inc. said net income jumped to $ N million or N cents a share in the third quarter + the fairfield n.j. company which is <unk> by ogden corp. new york had net of $ N million or four cents a share a year ago + revenue soared to $ N million from $ N million + ogden projects whose shares began trading on the new york stock exchange in august closed yesterday at $ N down N cents + the stock began trading this summer at $ N apiece + ogden projects which has interests in <unk> recovery and <unk> cleanup said it has N facilities in operation up from seven a year ago + meanwhile ogden corp. which also has interests in building maintenance and management reported third-quarter net income of $ N million or N cents a share more than twice the $ N million or N cents a share a year earlier + revenue rose N N to $ N million from $ N million + under attack by its own listed companies and powerful floor traders the new york stock exchange is considering <unk> a collar on program trading that it abandoned last year according to people familiar with the big board + the exchange also may step up its disclosure of firms engaged in program trading these people said + big board officials would n't comment publicly + but in an interview in which he called the stock market 's volatility a national problem big board chairman john j. phelan jr. said we are going to try to do some things in the short intermediate term to help the situation + mr. phelan has been viewed by many exchange members as being <unk> to <unk> swings caused by program trades + he said he is very surprised by the furor over program trading and the exchange 's role in it that has <unk> in recent days + mr. phelan said that the big board has been trying to deal quietly with the issue but that banning <unk> trading strategies entirely as some investors want would be like taking everybody out of an automobile and making them ride a horse + the exchange has a board meeting scheduled for tomorrow and it is expected that some public announcement could be made after that + big board officials have been under <unk> from both investors and the exchange 's own floor traders since the dow jones industrial average 's 190-point tumble on oct. N + mr. phelan has n't been making public remarks in recent days and many people have urged him to take more of a leadership role on the program trading issue + what the big board is considering is <unk> a collar on program trading when the market moves significantly + early last year after a <unk> one-day drop in the dow the big board instituted the collar which banned program trading through the big board 's computers whenever the dow moved N points up or down in a day + it did n't work + the collar was <unk> on a number of occasions meaning securities firms figured out ways to conduct program trades to <unk> the collar and use the big board 's electronic trading system mr. phelan said + that was when the exchange took a new <unk> by publishing monthly statistics listing the top N program trading firms + exchange officials emphasized that the big board is considering a variety of actions to deal with program trading + people familiar with the exchange said another idea likely to be approved is expanding the monthly reports on program trading to cover specific days or even hours of heavy program trading and who was doing it + meanwhile another big wall street brokerage firm joined others that have been pulling back from program trading + american express co. 's shearson lehman hutton inc. unit said it <unk> all index-arbitrage program trading for client accounts + in stock-index arbitrage traders buy and sell large amounts of stock with offsetting trades in stock-index futures to profit from fleeting price discrepancies between the two markets + shearson which in september was the <unk> program trader on the big board had already suspended stock-index arbitrage for its own account + also cs first boston inc. 's first boston corp. unit the <unk> program trader in september is preparing a response to the program-trading outcry officials of the firm said + first boston is one of the few major wall street firms that have n't pulled back from program trading in recent days + mr. phelan is an <unk> diplomat who normally appears to be <unk> in control of the big board 's <unk> + but he has been getting heat from all sides over program trading + mr. phelan 's recent remarks that investors simply must get used to the stock-market volatility from program trading have drawn criticism from both the exchange 's stock specialists who make markets in individual stocks and from many companies that have shares listed on the big board + mr. phelan said that his predicting continued volatility is just how the world is + if bringing the message is a crime i 'm guilty of it + but he said this does n't mean he is satisfied with the market 's big swings + we 're trying to take care of a <unk> of a lot of constituents mr. phelan said + each one has a different agenda + for example in a special meeting monday with mr. phelan senior officials of some of the big board 's N stock specialist firms complained that the exchange is no longer representing their interests + we are looking for representation we have n't had a specialist said + we 've had <unk> + after another session mr. phelan held yesterday with major brokerage firms such as morgan stanley & co. goldman sachs & co. painewebber group inc. and first boston all of which have engaged in program trading an executive of a top brokerage firm said clearly the firms want the exchange to take leadership + many specialist firms <unk> the big board 's new basket product that allows institutions to buy or sell all stocks in the standard & poor 's 500-stock index in one shot + ultimately the specialists view this as yet another step toward electronic trading that could eventually destroy their franchise + his phelan 's own interests are in building an electronic marketplace said a market maker + the basket product while it has got off to a slow start is being supported by some big brokerage firms another member of mr. phelan 's <unk> constituency + mr. phelan has had difficulty convincing the public that the big board is serious about curbing volatility especially as the exchange clearly <unk> its role as the home for $ N billion in stock-index funds which buy huge baskets of stocks to mimic popular stock-market indexes like the standard & poor 's N and which sometimes employ program trading + the big board wants to keep such index funds from <unk> to overseas markets but only as long as it handles it <unk> mr. phelan said + despite what some investors are suggesting the big board is n't even considering a total ban on program trading or stock futures exchange officials said + most revisions it will propose will be geared toward slowing down program trading during <unk> periods said officials working with the exchange + computers have made trading more rapid but that can be fixed with some <unk> + i think if you can speed things up you can slow them down mr. phelan said + that 's different than <unk> them + while volatility wo n't go away he said volatility is greater than program trading + what i 'm trying to say to people is it 's proper to worry about program trading but it 's only a piece of the business + for example mr. phelan said that big institutions have so much control over public investments that they can cause big swings in the market regardless of index arbitrage + a lot of people would like to go back to N before program trading he said + i would like to go back to N + but we 're not going back to N + indeed mr. phelan said that if stock-market volatility <unk> the u.s. may lose its edge as being the best place to raise capital + japan 's markets are more stable he said + if that continues a significant number of u.s. companies will go over there to raise money + in coming days when the big board <unk> its responses to the program-trading problem mr. phelan may take a more public role in the issue + lewis l. <unk> vice chairman of smith barney harris upham & co. said this is a problem that 's taking on a life of its own + the program trading situation seems to have driven individual investors as well as others out of the market and even europeans are <unk> + the exchange should take a <unk> position + for now however mr. phelan said i refuse to get out there and tell everybody everything is <unk> + we have a major problem and that problem is volatility + craig <unk> contributed to this article + a new minimum-wage plan has been worked out by congress and bush opening the way for the first increase in over nine years + the compromise proposal ending a long <unk> between democrats and the president would boost the minimum wage to $ N an hour by april N from $ N now + the legislation also includes a lower training wage for new workers who are <unk> + the big board is considering <unk> a curb on program trading when the market is volatile + the exchange which abandoned such a collar last year because it did n't prevent sharp price swings has been under attack recently for not taking action against program trading + great northern nekoosa reacted <unk> to georgia-pacific 's takeover bid of $ N a share or $ N billion though the suitor said all terms are negotiable + great northern 's stock soared $ N to $ N on speculation that a higher bid would emerge + stock prices rallied as the georgia-pacific bid broke the market 's recent <unk> + the dow jones industrials finished up N at N + the dollar and bond prices also closed higher + leading indicators rose a slight N N in september a further indication the economy is slowing but without any clear sign of whether a recession looms + meanwhile new-home sales plunged N N in the month + labor costs climbed N N in private industry during the third quarter matching the second-quarter rise + <unk> costs soared + time warner and sony could end up becoming partners in several business ventures as part of a settlement of their dispute over hollywood producers peter guber and jon peters + a bidding war for jaguar became more likely as britain unexpectedly decided to end restrictions blocking a takeover of the luxury car maker + sea containers plans to sell $ N billion of assets and use some of the proceeds to buy about N N of its common shares for $ N each + the company is trying to fend off a hostile bid by two european shipping firms + eastern airlines pilots were awarded between $ N million and $ N million in back pay by an arbitrator a decision that could complicate the carrier 's bankruptcy reorganization + ltv steel is boosting prices of flat rolled steel products an average N N but it 's unclear whether the increases set for jan. N N will stick + southern 's gulf power unit paid $ N in fines after <unk> guilty to conspiracy to make illegal political contributions and tax evasion + more big japanese investors are buying u.s. mortgage-backed securities <unk> a recent trend + usx 's profit dropped N N in the third quarter as improved oil results failed to offset weakness in the firm 's steel and natural gas operations + miniscribe reported a negative net worth and hinted it may file for chapter N + the disk-drive maker disclosed a major fraud two months ago + markets + stocks volume N shares + dow jones industrials N up N transportation N up N utilities N up N + bonds shearson lehman hutton treasury index N up + commodities dow jones futures index N up N spot index N off N + dollar N yen up N N marks up N + bond prices <unk> in <unk> trading rising on reports of economic weakness and falling on reports of economic strength + treasury bonds got off to a strong start advancing modestly during overnight trading on foreign markets + we saw good buying in japan and excellent buying in london said jay <unk> market strategist and trader at capital insight inc. beverly hills calif + the market 's <unk> was helped by the dollar 's <unk> he said + late in london the dollar was quoted at N west german marks and N japanese yen up from late monday in new york + british sterling eased to $ N from $ N + when u.s. trading began treasury bonds received an additional boost from news that sales of new single-family homes fell N N in september + the <unk> was twice as large as economists projected and was the sharpest decline since a N N drop in january N + economists said the report raised speculation that the economic slowdown could turn into a recession which would <unk> the way for the federal reserve to lower interest rates + but later in the day a report by the purchasing management association of chicago cast doubt on the recession scenario + the association said its october index of economic activity rose to N N after having been below N N for three consecutive months + a reading below N N indicates that the manufacturing industry is slowing while a reading above N N suggests that the industry is expanding + bond prices fell after the chicago report was released + by the end of the day bond prices were mixed + the benchmark 30-year bond was nearly N point higher or up about $ N for each $ N face amount + new two-year notes ended unchanged while three-year and four-year notes were slightly lower + municipal bonds ended unchanged to as much as N point higher while mortgage-backed securities were up about N point + corporate bonds were unchanged + in the corporate market an expected debt offering today by international business machines corp. generated considerable attention + the giant computer maker is slated to offer $ N million of 30-year <unk> debentures through underwriters led by salomon brothers inc + traders expect the bonds to yield about N to N percentage point above the treasury 's benchmark 30-year bond which ended tuesday with a yield of about N N + the last time ibm tapped the corporate debt market was in april N when it offered $ N million of debt securities + ibm 's visits to the debt market are closely watched by <unk> at other corporations and by credit market analysts + some analysts believe the company has the ability to pinpoint the trough in interest-rate cycles + in october N just days before the federal reserve raised interest rates ibm offered $ N billion in debt securities + the boost in rates sent ibm 's bonds tumbling leaving underwriters with millions of dollars of losses and triggering a sell-off in the overall market + the company ca n't be bullish if they 're doing a sizable 30-year bullet said one analyst + others said ibm might increase the size of the offering to as much as $ N billion if investor demand is strong + the company has $ N billion in debt filed with the securities and exchange commission + i think the $ N million is a little bit of a fire drill said jim <unk> head of the industrial bond department at drexel burnham lambert inc + i think as the pricing time <unk> the bonds will come a little richer and in a larger amount + treasury securities + treasury prices ended mixed in light trading + the benchmark 30-year bond was quoted late at N N to yield N N compared with N N to yield N N monday + the latest 10-year notes were unchanged at N N to yield N N + short-term rates also were mixed + the discount rate on three-month treasury bills rose slightly from the average rate at monday 's auction to N N for a bond-equivalent yield of N N + the discount rate on six-month treasury bills fell slightly to N N for a bond-equivalent yield of N N + corporate issues + two junk bond issues were priced yesterday including a <unk> offering by beatrice co + a spokesman for underwriters salomon brothers inc. said beatrice cut its high-yield offering to $ N million from a planned $ N million after it became clear the company would have to give investors higher yields + in the two-part offering $ N million of senior subordinated reset notes were priced at N and carried a rate of N N N while the $ N million of senior subordinated floating rate notes were priced to float at N percentage points above the london interbank offered rate or libor + the one-year libor rate yesterday was N N N + since the recent deterioration of the junk-bond market at least two other junk issuers have said they plan to scale back planned high-yield offerings and several issues have been postponed + william <unk> beatrice chief financial officer said favorable market conditions in september prompted the company to plan more debt than necessary + however given the changes in the market conditions that have occurred since then we decided to sell only the amount needed to proceed with our contemplated recapitalization he said + under the firm 's original bank credit agreement it was required to raise $ N million of subordinated debt to be used to repay some of the bank borrowings drawn to redeem $ N million of increasing rate debentures in august + a month ago when beatrice first filed to sell debt the company had planned to offer $ N million of its senior subordinated reset notes at a yield of N N N + the $ N million in senior subordinated floating-rate notes were targeted to be offered at a price to float four percentage points above the three-month libor + by october however market conditions had deteriorated and the reset notes were targeted to be offered at a yield of between N N N and N N N + mr. <unk> said investors also demanded <unk> <unk> + continental <unk> inc. via underwriters at morgan stanley & co. priced $ N million of junk bonds at par to yield N N N + mortgage-backed securities + j.c. penney & co. issued $ N million of securities backed by credit-card receivables + the securities were priced at N to yield about N N + underwriters at first boston corp. said the j.c. penney credit-card securities are the first with a 10-year average life which is much longer than previous such issues + elsewhere ginnie mae 's N N issue for november delivery was quoted at N N bid up N from late monday to yield about N N to a 12-year average life assumption + freddie mac 's N N N issue was quoted at N N up N from monday + fannie mae 's N N issue was at N N up N + on the pricing front an <unk> issue of $ N million federal home loan mortgage corp + remic mortgage securities was launched by a morgan stanley group + the offering is backed by freddie mac 's N N issue with a weighted average term to maturity of N months + municipal issues + municipal bonds were little changed to N point higher in late dealings + we were <unk> and today we bounced back + some accounts came in for some blocks in the secondary market which we have n't seen for a while said one trader + there were no sell lists and the calendar is <unk> up a bit + there 's light at the end of the tunnel for municipals he said adding that he expects prices to inch up in the near term + the market 's tone improved after monday 's pricing of $ N million new york city general obligation bonds + the issue 's smooth <unk> eased fears that supply would <unk> demand in coming sessions traders said + demand for the bonds was strong enough to permit underwriters to trim some yields in the tax-exempt portion of the offering late monday + a two-part $ N million offering of wastewater treatment bonds by the new jersey wastewater treatment trust was more than half sold by late in the session according to lead underwriter merrill lynch capital markets + the debt was reoffered priced to yield from N N in N to N N in N + foreign bonds + most foreign government bonds markets were quiet + west german bonds firmed a bit after monday 's fall but traders said the market remains bearish due to speculation that interest rates could rise again + in a speech given friday but released late monday <unk> vice president helmut <unk> suggested that it was risky to claim that the booming german economy has reached the peak of its cycle + his comments were interpreted as a sign that higher interest rates are possible + on oct. N the <unk> raised the <unk> and discount rates by one percentage point to N N and N N respectively the highest levels in seven years + germany 's N N bond due october N was unchanged at N to yield N N while the N N N notes due july N rose N point to N to yield N N + japanese government bonds showed little change + japan 's benchmark no. N issue due N ended on brokers ' screens at N down N point to yield N N + british government bonds were little changed as investors <unk> an address on economic policy by john major the new chancellor of the exchequer + britain 's benchmark N N N bond due N rose N to N N to yield N N while the N N N notes due N were unchanged at N N to yield N N + paramount communications inc. said it sold two simon & <unk> information services units to macmillan inc. a subsidiary of maxwell communication corp + the two units are prentice hall information services which publishes tax financial planning and business law information among other services and prentice hall information network which electronically <unk> tax information + terms were n't disclosed but industry executives said the units were sold for $ N million + arthur h. <unk> previously president of the prentice hall tax and professional services division was named president of the newly formed macmillan professional and business reference division + simon & <unk> retains the corporation law <unk> service which will become part of its prentice hall law & business unit + a governing body of both the financial accounting standards board and the <unk> accounting standards board voted to give the fasb jurisdiction over accounting standards for certain government-owned entities + the financial accounting foundation voted N that fasb accounting rules <unk> gasb rules in regard to utilities hospitals and colleges and universities owned by the government + gasb rules still apply for other government units + after the gasb was founded in N N years after the fasb the government-owned entities were supposed to follow fasb rules unless the gasb <unk> them + the gasb had told governments they did n't have to follow fasb rules on depreciation making it difficult for <unk> agencies to compare private and state-owned schools which compete in the public bond market + the foundation vote is effective for the affected government entities with fiscal years that begin starting next jan. N and makes the financial results of the hospitals colleges and schools easier to compare with <unk> businesses + but it may lead to separate financial reports based on different rules for the government entities under fasb rules and those still under gasb rules + managers of government entities are often more concerned with the political and legal structure and <unk> <unk> with <unk> businesses is n't always as high a priority a foundation spokesman said + avery inc. said it completed the sale of uniroyal chemical holding co. to a group led by management of uniroyal chemical co. the unit 's main business + it valued the transaction at $ N million + avery which continues to operate a coal company it expects to sell at a loss said in proxy materials it intends to seek control of one or more companies + after fees and repayment of debt avery is left with about $ N million in cash and securities from the uniroyal sale + avery paid $ N million including various legal and financing fees to acquire uniroyal chemical <unk> conn. in N a move that <unk> avery with debt + in over-the-counter trading avery shares were quoted yesterday at a bid price of N cents a share + according to avery for the year ended sept. N N uniroyal chemical had sales of $ N million and a net loss of $ N million + an avery spokesman said that the loss was magnified by accounting adjustments and that the company 's loss was smaller on a cash basis + uniroyal has N employees and facilities in the u.s. canada brazil italy and taiwan + in a related development avery said it completed a recapitalization in which its controlling shareholders and top officers nelson <unk> and peter w. may surrendered warrants and preferred stock in exchange for a larger stake in avery 's common shares + on a fully diluted basis the two raised their stake to N N from N N + in december N messrs. <unk> and may sold their stock in <unk> industries inc. a packaging company they controlled to <unk> corp. of france + the executives had <unk> <unk> by building american national can co. <unk> 's chief asset + in january N the two men acquired the <unk> assets of <unk> including a controlling stake in avery and by extension uniroyal chemical + in the august proxy material avery said that unless it sold uniroyal its ability to service debt would be hurt and avery 's shareholder value would continue to erode + until avery makes an acquisition messrs. <unk> and may will waive their direct salaries and bonuses the company said + for at least the next six months however avery will continue to pay $ N a month for management services to a company controlled by messrs. <unk> and may according to the proxy material + <unk> inc. said a plan to sell its <unk> clark inc. subsidiary to a group headed by anderson industries inc. for $ N million has been terminated + <unk> a maker of packaging and <unk> products said the two companies could n't agree on terms of a definitive agreement + the sale price of the unit which makes packaging products was to consist of cash notes and an amount to be determined by the unit 's future performance + <unk> said it is inviting proposals from other prospective purchasers of the unit + both <unk> and anderson are based in <unk> ill + rally 's inc. said it adopted a shareholders rights plan to protect shareholders from an <unk> priced takeover offer + the plan provides for the distribution of one common <unk> right as a dividend for each share of common outstanding + each right <unk> shareholders to buy one-half share of common for $ N + earlier this month a group led by three of the company 's directors burt sugarman james m. trotter iii and <unk> e. trotter ii indicated it had a N N stake in the louisville ky. fast-food company and that it planned to seek a majority of seats on rally 's <unk> board + the company said it was concerned about the announced intent to acquire control of the company by a <unk> group + fujitsu ltd. said it wants to withdraw its controversial <unk> bid to design a waterworks computer system for the city of hiroshima + meanwhile japan 's fair trade commission said it was considering launching an investigation into whether the bid the equivalent of less than a penny violates <unk> laws + hiroshima last week held an auction to pick the contractor expecting to pay about N million yen for the project + eight companies submitted bids but fujitsu won the contract by essentially saying it would do the job for free + news of the bid drew sharp criticism from other computer companies and industry observers + fujitsu itself which said the bid had n't been approved by its headquarters was clearly embarrassed + the bid was n't <unk> acceptable a company spokeswoman said + hiroshima officials said they still consider the contract in effect and had no immediate plans to cancel it + they said they wanted to wait for the outcome of any government investigation before deciding what to do + the city 's department of consumer affairs charged <unk> & lewis inc. with failing to deliver on its promise of lowering prices + in a civil suit <unk> in state supreme court in new york the agency alleged that the <unk> and <unk> <unk> chain engaged in deceptive advertising by claiming to have lowered every price on every item as part of an advertising campaign that began june N + the agency said it monitored <unk> & lewis 's advertised prices before and after the ad campaign and found that the prices of at least N different items either increased or stayed the same + in late may <unk> & lewis announced a plan to cut prices N N to N N and eliminate what it called a standard <unk> practice of negotiating individual deals with customers + the consumer agency also disputed <unk> & lewis 's continuing strategy of advertising new lower prices when <unk> there have n't been price reductions since june N + richard d. lewis president of the <unk> chain defended the company 's pricing campaign saying it did n't use the misleading expression reduced from original prices + mr. lewis said the company marked price <unk> and advertised at its lowest possible prices for all its merchandise to reduce public confusion + mr. lewis said the company gave the consumer affairs department volumes of documents to <unk> its statements and made every effort to comply with all the agency 's policies + in its suit the consumer agency seeks fines of $ N per violation of the city 's consumer protection law costs of investigation and an injunction to prevent <unk> & lewis from continuing its allegedly deceptive advertising + wary investors have been running for the stock market 's equivalent of bomb shelters buying shares of <unk> and utility companies + those two groups have recently been leading the list of stocks setting new highs + on friday when only a dozen common stocks hit 52-week highs on the new york stock exchange five were <unk> issues and another four were utilities + on monday when a mere seven common stocks managed new highs six were utilities or <unk> + at first <unk> gold and utilities seem strange <unk> + after all gold prices usually soar when inflation is high + utility stocks on the other hand <unk> on <unk> because the fat dividends utilities pay look more attractive when prices are falling or rising slowly + but the two groups have something very important in common they are both <unk> for scared money stocks for people who hate stocks + it 's as if investors the past few days are betting that something is going to go wrong even if they do n't know what + if the stock market and the economy catch their breath and show that they 're on firmer footing these stocks might well fall back + indeed that happened to some extent yesterday as industrial stocks rebounded partly on news of takeovers in the paper industry + still a lot of investors clearly have revived their interest in gold and utility shares + the primary <unk> thing is that people are frightened says martin <unk> a new york money manager + the aftershocks of oct. N when the dow jones industrial average dropped N points are still <unk> + certainly the oct. N sell-off did n't settle any <unk> + beyond that money managers and analysts see other problems + inventories are creeping up car inventories are already high and big auto makers are <unk> plants + takeover fever has cooled removing a major horse from the market 's <unk> + britain 's unsettled political scene also worries some investors + the gyrations in the british government add political uncertainty on top of high inflation and a <unk> stock market says john hoffman assistant director of research at smith barney harris upham & co + one of the three major markets in the world is getting <unk> up pretty bad + if the fed does not come to the rescue and produce lower short-term interest rates over the next N days the market 's going to <unk> says larry <unk> a market analyst with prudential-bache securities + with this sort of sentiment common it 's natural for investors to seek out defensive investments + utilities are a classic example even in recessions people continue to use electric power water and gas at a fairly steady rate + such defensive issues as food tobacco and drug stocks have been in favor for some time + but many of these stocks have now become expensive + mr. <unk> points to coca-cola co. and pepsico inc. as examples they 're selling for N to N times estimated N per-share earnings + gold stocks are n't cheap on this basis either with many selling for N times earnings or more + even utility stocks are n't all that <unk> at an average of N times earnings + but the two groups represent a further step in <unk> + if gold stocks and utilities continue to lead it may signal that the market is in for rough times + that 's just what joseph <unk> expects + we are going to <unk> lower says the flamboyant market <unk> who had a huge following a few years back + anyone telling you to buy stocks in this market is technically irresponsible + you do n't want to own anything long except gold stocks + one reason for his <unk> is a weekly tally he keeps of stocks within a point of hitting new highs or lows + last friday N stocks on the big board hit new 12-month lows + but by mr. <unk> 's count N issues were within one point of such lows + robert <unk> a veteran new york money manager and president of <unk> securities has money in both gold and utility issues + i think we could very well have an economic slowdown beginning very soon if not already he says + mr. <unk> does n't expect an actual recession + but he does expect a <unk> <unk> of an economy with very slow growth maybe one quarter of no growth at all + in such a climate utility stocks look good to him + he favors <unk> group inc. florida progress corp. <unk> energy inc. wisconsin energy corp. and dominion resources inc + the appeal of gold issues mr. <unk> says is that they 're a counter group + you go into them because they move counter to the general market + he adds that gold stocks had been down so long they were ready for a bounce + his <unk> are american <unk> resources corp. echo bay mines ltd. and <unk> <unk> mines corp + nevertheless mr. <unk> <unk> that you do n't buy gold stocks based on powerful fundamentals + in addition to having high price-earnings ratios most pay <unk> dividends if any + the earning power of gold mining companies is restricted unless the gold price <unk> up over $ N an ounce he says + <unk> cohen an investment strategist for drexel burnham lambert also thinks it makes sense to have some money in both utilities and gold + my outlook is for a decline of about N N in corporate profits in N she says + but a bunch of utilities should post profit increases + among utilities drexel currently favors <unk> corp. and general public utilities corp + as for gold she notes that it usually rises when the dollar is weak as it has been lately + among gold stocks drexel likes battle mountain gold co. <unk> gold co. and freeport-mcmoran gold co + it never <unk> to <unk> me how the business world continues to <unk> the world 's environmental problems is science or private gain driving ozone policy by george <unk> business world oct. N + to suggest that a N N drop in ozone by the middle of the next century would be negligible is irresponsible and <unk> + consider the fact that a mere N N drop in ozone would increase birth defects and <unk> by allowing solar radiation to alter the dna structure + even a small reduction is <unk> and to suggest otherwise is <unk> and <unk> + the reason environmentalists do n't mind seeing new crises arise is because there are new crises + crises larger and more dangerous to the quality of life than they were N years ago + if you are doubtful consider for a moment that the <unk> <unk> <unk> in northern new jersey which supply the <unk> area with drinking water are <unk> with toxic <unk> + this is a fact and not the product of some environmental <unk> or a group 's <unk> to create a market + it 's time business leaders and the general public learn that <unk> does not rule over this natural environment but is rather the <unk> <unk> player within nature 's workings + mark t. <unk> jersey city n.j + mr. <unk> 's column was right on the money but i wish it could have gone one step further + as an employee of a major <unk> and <unk> manufacturer i have been heavily involved in dealing with the political <unk> of the <unk> theory named after the researchers who found in N that chlorofluorocarbons contributed to the depletion of ozone in the earth 's atmosphere and the montreal protocol + an important part of my effort has been to understand the science so i can explain it to corporate colleagues facing major changes in product design + in my research i have found a paper by joseph <unk> of the national cancer institute and several colleagues reporting an <unk> decrease in uv-b radiation at eight u.s. measurement sites + our concern for the ozone layer of course grows out of the potential for increasing uv-b radiation which could damage <unk> and <unk> + the last of the measurements reported was in N but recent conversations with mr. <unk> indicated that he knew of no recent changes in the trend + i understand but have n't yet <unk> that there are studies by <unk> russians and the max <unk> institute that show either <unk> or declining uv-b at the surface + to me this calls into question the <unk> of the <unk> theory and hence the whole chlorofluorocarbons replacement effort + this in turn threatens the massive vested interests of which you have written + my questions on this subject at a recent meeting at the world resources institute with representatives of the national resource development commission the environmental protection agency friends of the earth etc. were greeted with <unk> and some <unk> comments about that report being <unk> + when i expressed <unk> that no one was undertaking a more current and credible uv-b study i was urged to get back to the agenda topic which was ironically a schedule for getting rid of <unk> the so-called soft cfcs that are such an important part of the <unk> <unk> scenario + subsequently i have learned that a private group of which du pont is a part is funding a modest program to continue data gathering at the <unk> report stations as well as to develop more sophisticated <unk> measuring instruments + but this is almost an underground activity + to my knowledge no government entities including the epa are pursuing uv-b measurements + the topic never comes up in <unk> establishment meetings of which i have attended many + it seems to me that such measurements are a vital part of any <unk> honest evaluation of the threat posed by cfcs + while recognizing that professional environmentalists may feel threatened i intend to urge that uv-b be monitored whenever i can + frederick h. <unk> vice president industry and government relations white consolidated industries inc washington + the relationship between surface release of cfcs and global <unk> ozone loss was identified back in N + although like all scientific theories it had its initial opponents few experts question the connection now + the discovery of the ozone hole over <unk> and the results of <unk> and <unk> aircraft experiments conducted over the past several years serve as evidence that ozone depletion is related to <unk> <unk> + in the september issue of scientific american thomas e. <unk> distinguished member of the technical staff at at&t bell laboratories and paul j. <unk> director of the air chemistry division of the max <unk> institute for chemistry in <unk> west germany wrote it is now quite evident that chlorofluorocarbons particularly <unk> and <unk> are the major <unk> responsible for ozone depletion + mr. <unk> quotes peter teagan and <unk> the name of arthur d. little inc. to support his statement + however unlike messrs. <unk> and <unk> who are both <unk> in the study of atmospheric chemistry mr. teagan has no special expertise in the area + he is a mechanical engineer not an atmospheric <unk> + it is <unk> and <unk> to say that scientists needed new crises to generate new grants and contracts and that environmental groups need them to stay in business + solving the global environmental problems we all face will require an unprecedented level of cooperation and communication among industry policy makers and the scientific community world-wide + karen fine <unk> publisher global environmental change report <unk> mass + nearly two months after saying it had been the victim of widespread fraud miniscribe corp. disclosed it had a negative net worth of $ N million as of july N and hinted that it might be forced to file for protection under bankruptcy laws + richard rifenburgh chairman and chief executive of the <unk> colo. disk-drive maker also said the company continued losing money in the third quarter and expects to sustain further losses through the end of the year + mr. rifenburgh told industry analysts he is moving aggressively to negotiate <unk> settlements on a number of shareholder lawsuits but noted that the company could file for bankruptcy-law protection if settlement talks fail + mr. rifenburgh also noted that N million shares of miniscribe common stock were traded during the past three years so there 's a tremendous amount of exposure + miniscribe has said that its financial results for the past three fiscal years would have to be restated because of the allegedly fraudulent accounting and marketing practices that inflated revenues and net income + miniscribe also has n't filed any financial statements for N + mr. rifenburgh said such statements should be ready by the end of november + he said he expects the company to have $ N million in sales for this year + he did n't say what the company expected to report for year-earlier sales which will be restated from the previously reported $ N million + the release of miniscribe 's new balance sheet came one day after it introduced its new line of <unk> disk drives on which it is <unk> much of its hope for survival + although it is not the first company to produce the <unk> drives which store information in personal computers miniscribe says it is the first with an <unk> drive the company plans to introduce a <unk> drive next year + analysts and consultants had mixed reactions to yesterday 's announcements <unk> mr. rifenburgh 's efforts but questioning whether the company can survive in a highly competitive marketplace + it 's a <unk> attitude said dave <unk> vice president of storage research for international data corp + others pointed out that at least four other disk-drive makers will have competitive <unk> drives early next year and that the industry already operates on very thin margins + the company also faces <unk> by the national association of securities dealers + the company continues to trade in the over-the-counter market with an exception to listing requirements + miniscribe filed a status report with the nasd on monday detailing its efforts to comply with listing requirements and <unk> an extension of the exception but has n't received a response + miniscribe common closed yesterday at $ N down N cents and has been trading for several months at less than $ N a share + meanwhile u.s. attorney jerry <unk> in denver is reviewing the report prepared by miniscribe 's outside directors to determine if criminal charges should be brought before a grand jury + the miniscribe report <unk> a host of allegedly fraudulent practices including the shipment of bricks and defective disk drives that were booked as sales and inventory <unk> in accounting records + the internal investigation also criticized miniscribe 's auditors coopers & <unk> for allegedly ignoring numerous red flags + mr. rifenburgh said the board still has n't acted on most of the internal report 's recommendations pending <unk> of the balance sheet + he added that he expects to make a recommendation within a few weeks on whether miniscribe should file its own lawsuits against former company officers and directors + american enterprise institute scholar norman <unk> in the oct. N tv guide on what tv news does n't report about congress and should + by concentrating all their resources on the pay raise wright and tower the networks actually <unk> some major stories that showed the flaws and <unk> of the institution + an <unk> producer could easily have created a <unk> and interesting piece about how congress really works and why voters in say west virginia got a federally funded university project and building while voters in arkansas did not + but nobody did such a piece reflecting a contemporary <unk> the more a scandal has to do with a congressman 's duties as a congressman the less likely it is to catch the fancy of a network + <unk> michael <unk> in one of his institute 's recent publications on journalism in the year N + the <unk> definition of <unk> will favor virtually <unk> use of personal sensitive and intimate facts + traditional standards of <unk> and importance is this something the public ought to know will be replaced by a much broader test is this something the public is interested in knowing + and since the public has always been <unk> by <unk> and <unk> reporters and editors will strain for creative <unk> to justify the <unk> of collateral facts about private lives including sexual activities and domestic relationships activities of family members and all matters about mental and physical health + similarly <unk> images will be more vivid <unk> and sometimes <unk> + one consequence of the trend toward tabloid standards of taste will be fierce attacks from politicians who will find sufficient evidence of abuse to <unk> an already <unk> public to control the press + bankers trust new york corp. won permission from the federal reserve board to move the company 's private placement department to its fledgling securities subsidiary + the seemingly mundane action which was opposed by the securities industry association a trade group has important implications for banks ' recent entry into the underwriting of corporate securities + the fed 's action increases the volume of publicly registered securities that banks ' securities affiliates will be able to underwrite + several other banks have similar applications pending + over the past two years the fed has given a handful of banks ' securities affiliates permission to underwrite and deal in a variety of corporate asset-backed and municipal securities that had previously been the sole <unk> of securities firms + securities firms have challenged those fed approvals saying they violate federal laws <unk> the banking and securities businesses + however the fed limited the revenue that banks could earn from these new underwriting activities to no more than N N of the revenue earned from other securities activities long open to banks such as dealing in u.s. treasurys + for some banks that N N ceiling created problems + but by allowing <unk> securities inc. to handle private <unk> the fed boosted the volume of new types of underwriting that the unit can do + private <unk> involve debt and equity securities typically in denominations of $ N million that are sold to institutional investors and are n't registered with the securities and exchange commission + last year bankers trust said it placed $ N billion of corporate debt and equities privately + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + <unk> j. <unk> was named an executive vice president of the american express travel related services co. unit of this travel and financial services firm + she retains her duties of <unk> director + joe f. lynch the <unk> chairman and chief executive officer of first continental real estate investment trust was named to the new post of vice chairman of this bank holding company + every <unk> at N a.m. 40-year-old mike sinyard <unk> cycling clothes <unk> on a bike he keeps at his morgan hill calif. office and sets out to cover a distance most people would travel only by car + as many as N of his employees at specialized bicycle components inc. ride with him + when they return to their desks at N p.m. they have <unk> N miles + such <unk> for cycling helped mr. sinyard build a creative company at the <unk> of its industry + founded by bike enthusiasts rather than businessmen specialized spotted the appeal of <unk> bikes that go almost anywhere and began <unk> them in N + in the past five years the company 's sales have grown to $ N million from $ N million + today so-called mountain bikes account for two-thirds of the $ N billion spent annually on all <unk> in the u.s. + with N N of its sales coming from mountain bikes specialized is widely considered to be a market leader + accessories largely for mountain-bike users account for much of the rest of sales + but today the company needs its entrepreneurial spirit more than ever + one large competitor after another is leaping into the booming market specialized helped create turning out mountain bikes with such well-known names as <unk> <unk> <unk> and <unk> + thus mr. sinyard 's company must <unk> more than ever to stay ahead of them by developing new products specifically for mountain <unk> + at the same time though it must become more structured to better manage its growth + <unk> both will be a <unk> act as challenging as riding a <unk> + it is a problem common to small companies that have grown fast especially when their success attracts big-time competitors + the big word around specialized is passion says <unk> eidsmo a former <unk> executive whom mr. sinyard recruited from citicorp to run marketing and sales + what i hope to bring to this is another word process + that 's my challenge + it 's mike 's challenge as well + mr. eidsmo is one of several key people from outside the cycling industry who were hired to bring the <unk> fast-growing company under tighter control + we had a lot of problems mr. sinyard says + while the company 's sales were soaring we still had a system that was probably appropriate for $ N million to $ N million in sales + adds mr. eidsmo what felt good that day was done that day + since his <unk> in may mr. eidsmo has put in place techniques learned while working for citicorp such as <unk> detailed project plans and forecasts of company sales and product trends + we 're finally getting and it 's been very painful some understanding of what the company 's long-term horizon should begin to look like mr. eidsmo says + but it 's risky he says of specialized 's attempt to adopt a corporate structure + you do n't want to lose the magic of the company 's creative drive + hoping to stay ahead of the pack the company is <unk> innovation + at a recent trade show <unk> lined up to view a new specialized bike frame that <unk> just N pounds a pound less than the <unk> mountain-bike frame on the market + by replacing the frame 's steel <unk> with titanium ones mr. sinyard 's company plans to make its next generation of <unk> even lighter + at the trade show specialized also unveiled a revolutionary <unk> bike <unk> developed jointly by specialized and du pont co + made of <unk> materials the <unk> <unk> are designed like <unk> wings to <unk> N minutes off the time of a rider in a <unk> race the company claims + it currently costs $ N though mr. sinyard thinks the price can be reduced within three years to between $ N and $ N + he was able to slash the price of the company 's least expensive mountain bike to $ N from $ N in + but demands on the company 's creativity are certain to grow + competition is <unk> as larger companies <unk> a mountain-bike market mr. sinyard 's company once had virtually all to itself + u.s. cycling federation official philip <unk> says mountain <unk> is growing at such a <unk> rate that a lot of companies are getting into this + one especially <unk> specialized market the new players are targeting is mountain-bike accessories which mr. eidsmo calls the future of our business + accessories not only sell faster than whole bikes they also offer profit margins nearly double the N N to N N or so on sales of complete cycles + to get a piece of the business <unk> inc. <unk> ore. introduced a line of mountain-bike shoes + about a month ago michelin tire corp. greenville s.c. began selling mountain-bike tires for years a specialized <unk> + competition in the sale of complete bikes is heating up too + <unk> bicycle corp. which accounts for <unk> of the $ N million in annual sales at its <unk> parent <unk> corp. entered the mountain-bike business in N + <unk> previously made only traditional road bikes but it did n't take a rocket scientist to change a road bike into a mountain bike says <unk> 's president dick burke + the segment now makes up roughly two-thirds of his company 's total sales + at giant bicycle inc. <unk> <unk> calif. sales have tripled since the company entered the u.s. mountain-bike business in N + a subsidiary of a taiwanese holding company with world-wide sales of $ N million giant is one example of the sudden <unk> of mr. sinyard 's <unk> market niche + <unk> bicycle co. chicago established joint ventures with bike companies in <unk> china and hungary to sell bikes + in the past year <unk> international corp. <unk> has acquired such major brands as <unk> <unk> and <unk> + in response to the <unk> of the business mr. sinyard 's company is replacing independent distributors overseas with wholly owned subsidiaries + the move will cut out the cost of a <unk> and give specialized more control over marketing and sales + but as bill austin giant 's president puts it with some of the bigger players consolidating their strength the game has changed + carl e. pfeiffer chief executive officer was named to the additional post of chairman of this <unk> manufacturing concern + robert c. <unk> a director and chief operating officer of the company succeeds mr. pfeiffer as president + roger m. <unk> president was named to the new post of vice chairman + michael <unk> who had been executive vice president operations was named president and chief operating officer + <unk> manufactures <unk> systems for mainframes and minicomputers + richard j. <unk> was elected a director of this single-family home <unk> increasing the board to nine + he is a senior partner with the law firm of <unk> & <unk> and is a partner in <unk> venture management + john franco N years old formerly vice chairman of capital holding corp. and president of its accumulation investment group was named chief executive officer of this insurance holding company effective dec. N succeeding robert t. shaw who remains chairman + <unk> also named steven b. <unk> N senior vice president since N as president succeeding john w. <unk> who will join the <unk> acquisition corp. division of <unk> <unk> & co. which has agreed to buy most of <unk> 's <unk> subsidiaries + mci communications corp. said it won a $ N million contract from <unk> co. a denver investment banking concern to provide voice and data telecommunications services + the agreement calls for mci to provide data service N and <unk> service a <unk> private network service + the companies would n't disclose the length of the contract except to say it was a <unk> agreement + the head of british satellite broadcasting ltd. said he hopes to raise about # N million $ N million before the <unk> venture makes its delayed debut next spring with a major chunk coming from new investors + we 'll raise it through bank loans + we 'll raise it through new equity + and we 'll raise it through existing shareholders as well as through junk bonds said anthony <unk> the private consortium 's chief executive + he said he believes the bank loan to be arranged by february will supply about half of the financing + british satellite which already has raised # N million from N backers initially expected to seek an additional # N million + mr. <unk> said the additional financing may leave british satellite owned by about N investors including australian entrepreneur alan bond whose nearly N N stake would be reduced to as little as N N + bond corp. british satellite 's biggest investor would like to withdraw from the <unk> consortium and analysts have speculated hollywood studios might buy the bond stake + but mr. <unk> said he is n't talking to any studios about investing + besides bond corp. british satellite 's other backers include <unk> plc reed international plc and <unk> group plc + the consortium faced a setback in may when technical problems forced it to postpone the september launch until next spring + continued uncertainty about the timing of the consortium 's debut could make it hard to find a # N million cash injection + mr. <unk> conceded that british satellite 's potential u.k. lenders are saying when you 're on the air you 'll actually get the money + the bankers also insist that the loans depend on the consortium raising more money from new and existing backers + british satellite today is <unk> a # N million advertising and promotional drive for the consortium 's planned five channels of movies sports entertainment and news shows + as part of the drive the first N viewers who put up # N each will get a package valued at # N including a satellite receiving <unk> equipment installation and a three-month subscription to its <unk> service + british satellite faces competition from sky television a <unk> venture begun last february and owned by rupert murdoch 's news corp + the rivals currently are locked in a costly bidding contest for hollywood film rights + shares closed sharply higher in london in the year 's <unk> volume monday supported largely by a technical bounce after last week 's sharp declines + tokyo stocks posted a <unk> loss monday while trading in frankfurt west germany was mixed + in london the financial times 100-share index finished N points higher at N + the index settled off the high of N posted after wall street opened stronger + but it showed strength throughout the session hitting a low of only N within the first few minutes of dealings + the 30-share index settled N points higher at N + volume was only N million shares breaking the previous N low of N million shares recorded oct. N + turnover was also down substantially from N million shares on friday + dealers said the market was supported to some extent by a firmer pound gains on wall street and shopping by market-makers to cover internal requirements for selected stocks in the 100-share index + dealers attributed most of the day 's gains to market-makers moving prices higher rather than an <unk> of significant buying interest + prices were up across the board with most blue-chip stocks <unk> solid gains + though the market was stronger dealers said fresh buying interest was <unk> ahead of a potential <unk> debate in the house of commons set for tuesday + it will be chancellor of the exchequer john major 's first appearance before the opposition labor party + the market is <unk> interested in hearing what he has to say about the status of the current N N base lending rate + in london trading courtaulds a chemicals and <unk> company increased N pence to N after it disclosed plans to spin off its <unk> operations into a separately listed company on jan. N + it was the most active of the 100-share index at N million shares N million of which were traded by midday + jaguar ended N higher at N + dealers said fresh buying was drawn into jaguar after a senior executive of daimler-benz the auto maker told a british television <unk> during the weekend that the west german company held talks with the luxury auto maker over possible joint ventures + although <unk> has said it is n't interested in mounting a bid for jaguar dealers said its name further <unk> the growing interest in the british concern + <unk> was the biggest <unk> jumping N to # N $ N on anticipation of a stock split next week + total turnover in <unk> was a thin N shares + in tokyo stocks had a <unk> loss monday in quiet trading with the exception of concentrated buying in some <unk> issues + the nikkei index of N selected issues fell N points to N + the index fell N friday + in early trading in tokyo tuesday the nikkei index rose N points to N + on monday volume on the first section was estimated at N million shares down from N billion shares friday + declining issues outnumbered advancers N to N N issues were unchanged + investors who took profits friday mostly took a <unk> attitude monday amid uncertainty in the foreign-currency market and new york stocks traders said + <unk> <unk> an analyst at <unk> securities said <unk> expectation for lower interest rates made investors step back from real-estate shares which advanced last week + some traders said institutions were waiting to see the u.s. jobless rate to be issued friday + the tokyo stock price index of all issues listed in the first section which fell N points friday was down N points or N N at N + the second section index which fell N points friday was down N points or N N to close at N + second section volume was estimated at N million shares down from N million shares friday + monday 's losers included railway <unk> and high-technology issues + the energy of participating investors <unk> into tokyu group shares pushing prices of its companies up across the board + tokyu group announced during the weekend that each group company will buy the others ' stocks to defend themselves against a rumored takeover + the announcement fueled speculation for future advances in the shares + tokyu department store advanced N to N + tokyu corp. was up N at N + tokyu construction gained N to N + other winners monday included <unk> metals which attracted investors because of a surge in gold prices on the back of the unstable dollar + petroleum companies were also popular because of expectations of a weaker dollar which cuts dollar-denominated <unk> prices + share prices in frankfurt closed narrowly mixed after <unk> and <unk> trading + the dax index closed at N up only N + traders said turnover was particularly thin as investors waited for wall street to set the direction for the week + most expect the decline in new york stock prices to continue this week + another factor weighing on the frankfurt market involves fears about the impending wage talks between the ig metall <unk> union and industry representatives which could result in a wave of strikes next spring traders said + a few blue-chip stocks posted strong gains boosted by special factors while the majority of shares ended little changed + elsewhere stock prices were lower in brussels milan and stockholm and mixed in amsterdam paris and zurich + stocks closed higher in hong kong manila seoul sydney taipei and wellington but were lower in singapore + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + deere & co. said it reached a tentative agreement with the machinists ' union at its <unk> wis. plant ending a <unk> strike by workers at the facility + the maker of farm equipment said the three-year labor agreement with the international association of machinists and aerospace workers at john deere <unk> works deere 's primary facility for producing lawn and <unk> equipment takes effect immediately and <unk> through oct. N N + about N employees are covered by the new agreement deere said + courtaulds plc announced plans to spin off its <unk> operations to existing shareholders in a restructuring to boost shareholder value + the british chemical and textile company 's plan which requires shareholder approval would create a new listed u.k. stock with a probable market capitalization between # N million $ N million and # N million analysts said + the establishment of the separate company to be called courtaulds <unk> could be effective as early as next year 's first quarter + investors welcomed the move + courtaulds ' shares rose N pence to N pence <unk> the entire company at about # N billion + courtaulds ' spinoff reflects pressure on british industry to boost share prices beyond the reach of corporate raiders + courtaulds ' restructuring is among the largest thus far in britain though it is <unk> by b.a.t industries plc 's plans to spin off roughly # N billion in assets to help fend off a takeover bid from <unk> financier sir james goldsmith + the <unk> courtaulds textile operations had operating profit of # N million on # N million in revenue in the year ended march N + some analysts have said courtaulds ' moves could boost the company 's value by N N to N N because the two entities separately will carry a higher price earnings multiple than they did combined + in addition courtaulds said the moves are logical because they will allow both the chemicals and textile businesses to focus more closely on core activities + courtaulds has been under pressure to enhance shareholder value since takeover speculators including australian financier kerry <unk> surfaced holding small stakes last year + though mr. <unk> has since sold his stake courtaulds is moving to keep its institutional shareholders happy + even without a specific takeover threat courtaulds is giving shareholders choice and value said <unk> <unk> an analyst at london stockbrokers barclays de zoete wedd + in a statement the company said both parts can only realize their full potential and be <unk> valued by the market if they are separately quoted companies + the sharper definition and the <unk> which each will thereby gain will benefit shareholders customers and employees + courtaulds chairman and chief executive sir christopher <unk> will remain in both posts at the surviving chemical company after the spinoff + <unk> <unk> corp. said its affiliated company in malaysia established this april will begin manufacturing steel doors wednesday + its partner in the joint venture is <unk> kean <unk> metal industries <unk> malaysia + company officials said the new company <unk> kean <unk> <unk> is capitalized at the equivalent of N million yen $ N + the japanese concern has a N N stake while the local partner has a N N stake + the new company was created to meet growing demand for steel doors <unk> with increasing local concern about fire prevention the company said + barbara <unk> franklin president of franklin associates was elected a director of this building products maker + ms. franklin N years old <unk> the position vacated by <unk> g. <unk> who retired earlier this year at age N + nec corp. said it plans to more than double its british subsidiary 's capacity for the production of semiconductor <unk> + officials at the japanese semiconductor maker said the company intends to increase investment in plant and equipment by N billion yen $ N million to N billion yen in the year ending march N with the extra funds used to increase production overseas + officials said they were n't sure how the money will be distributed among overseas units but added that nec semiconductors u.k. ltd. will receive priority + officials also disclosed it 's possible that nec may reduce domestic production of <unk> chips to five million a month from six million beginning january because of deteriorating market prices + japan 's steel exports fell N N in september from a year earlier and were down N N from the previous month the japan iron and steel federation reported + september was the <unk> consecutive month in which steel exports failed to reach the year-earlier level + a federation official attributed the decline to brisk demand from domestic industries backed by continuing economic expansion in japan + japanese steel companies are apparently focusing on domestic sales but the official said it does n't necessarily mean that local sales contracts are increasing that <unk> + they are just too busy to meet domestic demand and have little room for overseas shipments the official said + after a bad start treasury bonds were buoyed by a late burst of buying to end modestly higher + the market was pretty <unk> for most of the day said robert h. <unk> vice president at <unk> bank plc + he said some investors were reluctant to plunge into the market ahead of several key economic indicators due this week especially friday 's potentially <unk> employment report + during the first hour of trading yesterday prices fell as much as N point or down about $ N for each $ N face amount + but market activity was <unk> as investors started to view the lower price levels as attractive + and the treasury 's $ N billion auction of short-term bills which generated strong buying interest helped to lift the bond market out of the doldrums + we saw good retail demand by small banks individuals and institutions and that is one reason why the market advanced late in the day said sung won <unk> senior vice president and chief economist at <unk> corp. minneapolis + he said the change in sentiment also reflected perceptions that the slate of economic <unk> due this week will be <unk> to a bond market rally + the employment report which will provide the first official measure of the economy 's strength in october is expected to show smaller gains in the generation of new jobs + other key economic indicators due this week include today 's release of the september leading indicators index and new-home sales + tomorrow the october purchasing managers report is due and on thursday comes october <unk> sales + despite yesterday 's modest bond market gains economists say investors are anxious about the treasury 's huge quarterly refunding of government debt the timing of which depends on congressional efforts to raise the debt ceiling + although the treasury will announce details of the november refunding tomorrow it could be delayed if congress and president bush fail to increase the treasury 's borrowing capacity + the debt ceiling is scheduled to fall to $ N trillion from $ N trillion at midnight tonight + the treasury 's benchmark 30-year bond rose N point + mortgage-backed securities were up less than N point and investment-grade corporate bonds were unchanged + strong demand for new york city 's $ N million general obligation bonds <unk> up the municipal market + traders said most municipal bonds ended N point higher + the new york city issue included $ N million of tax-exempt bonds priced to yield between N N to N N depending on the maturity + the $ N million of new york 's taxable general obligation bonds were priced to yield between N N to N N + as expected the longer-term tax-exempt new york bonds had yields nearly as high as those on taxable long-term treasury bonds + the yield on the benchmark 30-year treasury bond ended yesterday at about N N + bond dealers said the rates for the long-term tax-exempt new york city bonds were among the highest as a percentage of treasury rates for any new york city issue in recent memory + a spokesman for new york city comptroller harrison <unk> said the high rates reflect investors concerns about the city 's financial health and political uncertainties + new york bonds which have been <unk> in recent weeks on the pending supply and reports that the city 's economy is growing weaker rose N point yesterday + treasury securities + treasury bonds ended slightly higher in light trading + the benchmark 30-year bond ended at N N to yield N N compared with friday 's price of N N to yield N N + the latest 10-year notes ended at about N N to yield N N compared with N N to yield N N on friday + short-term interest rates rose at the government 's regular weekly <unk> auction + the average discount rate on three-month bills was N N and the rate on six-month bills was N N + those rates are up from N N and N N respectively at last week 's auction + due to the treasury 's need to raise funds quickly before the current authority to issue debt expires at midnight tonight yesterday 's auction was structured differently from previous sales + the treasury bills sold yesterday settle today rather than the standard settlement day of thursday + and because of the early settlement the three-month bills actually have a <unk> maturity and the six-month bills have an <unk> maturity + because of the early settlement the federal reserve was unable to purchase bills for its system account + however analysts expect the fed to buy treasury bills that were auctioned yesterday in the secondary market + the treasury also held a hastily scheduled $ N billion sale of <unk> management bills yesterday + here are details of yesterday 's three-month and six-month bill auction + rates are determined by the difference between the purchase price and face value + thus higher bidding narrows the investor 's return while lower bidding widens it + the percentage rates are calculated on a <unk> year while the coupon equivalent yield is based on a <unk> year + both issues are dated oct. N + the 13-week bills mature feb. N and the 26-week bills mature may N N + here are details of yesterday 's <unk> cash management bill auction + interest rate N N + the bills are dated oct. N and mature dec. N N + corporate issues + the junk bond prices of western union corp. tumbled after the company said it wo n't proceed with an exchange offer to holders of its reset notes + the upper <unk> river n.j. communications firm said it is considering alternatives to the restructuring of the senior secured notes because of changes in the high-yield market + in june western union was forced to reset the interest rate on the senior secured notes due in N to N N N from N N N a move which increased the firm 's annual interest payments by $ N million + although the notes held at a price of N to N immediately after the reset they started falling soon afterward + yesterday western union 's senior secured reset notes fell N N points or about $ N for each $ N face amount to close at N N + other western union securities were also lower + the company 's N N sinking fund debentures were quoted at a bid price of N N and an offered price of N while the N N N subordinated debentures of N were being bid for at N and offered at around N N + the N N N debentures last traded at N + high-yield traders said spreads between the bid and offered prices of western union junk bonds have been widening for some time and in certain cases bids for western union securities are not available + elsewhere prices of investment-grade and high-risk high-yield junk bonds ended unchanged + in the new-issue market for junk securities underwriters at salomon brothers inc. are expected to price today a $ N million junk bond offering by beatrice co. + the two-part issue consists of $ N million of senior subordinated reset notes maturing in N and $ N million of subordinated floating rate notes also maturing in N + portfolio managers said expectations are for the issue to be priced at a discount with a coupon of N N N and a yield of about N N + the chicago-based food and consumer goods concern was acquired in april N in a $ N billion leveraged buy-out engineered by kohlberg kravis roberts & co + proceeds from the note sale will be used to repay a portion of the bank borrowings used by beatrice to redeem its $ N million principal amount of increasing rate debentures in august + meanwhile underwriters at morgan stanley & co. are expected today to price a $ N million high-yield offering by continental <unk> inc + the senior subordinated debentures maturing in N are targeted to be offered at a yield of between N N N to N N N + mortgage-backed securities + mortgage securities ended N to N higher in light trading + ginnie mae 's N N issue for november delivery finished at N N up N and its N N issue at N N up N + freddie mac 's N N issue ended at N N up N + in the derivative market insurance companies have scaled back their purchases of remic securities or real estate mortgage investment <unk> as they assess potential claims from the recent california earthquake and hurricane in the carolinas + this could mean diminished issuance of derivative mortgage issues during the next few weeks + insurance companies have been major buyers of <unk> planned amortization classes <unk> during the past few months + the <unk> appeal to insurance companies and other investors because they have higher yields than <unk> corporate bonds and carry the guarantee of freddie mac and fannie mae <unk> agencies + in the asset-backed market beneficial corp. offered $ N million of securities backed by home-equity loans the second large deal in the past week + last week a unit of <unk> financial corp. offered $ N million of home-equity securities + both the <unk> and beneficial offering were underwritten by merrill lynch capital markets the leading wall street firm in the home-equity securities market which was created early this year + municipal issues + the improved tone in the municipal market largely an <unk> of the new york city sale 's reception helped municipal futures rebound from early lows but the spread between the contract and <unk> futures continued to grow more negative + the <unk> spread or difference between the municipal and <unk> futures contracts has been near <unk> lows in recent trading driven basically by concerns that new-issue supply would <unk> demand + december municipal futures ended up N point to N having pulled off a morning low of N as cash municipals rebounded + but front month <unk> futures settled the afternoon session up a slightly greater N at N + foreign bonds + british government bonds ended moderately higher encouraged by a <unk> pound and a rise in british stocks + the benchmark N N N bond due N rose N to N N to yield N N while the treasury 's N N notes due N rose N to N N to yield N N + west german government bonds fell as much as N point in light nervous trading + the N N treasury bond due october N ended off N point to N to yield N N while the N N N notes due N fell N point to N to yield N N + japanese government bonds continued to erode as the dollar remained <unk> against the yen + japan 's no. N N N bond due N ended the day on brokers screens at N to yield N N + so-called cross-border acquisitions totaled $ N billion in the second quarter down from $ N billion a year earlier according to the accounting firm <unk> peat <unk> + in a cross-border transaction the buyer is in a different region of the globe from the target + such transactions numbered N in the second quarter up from N a year earlier + however the total value declined for deals of $ N million and up + the downturn in total value may be only temporary suggested <unk> <unk> a <unk> peat <unk> partner + he explained in part that restructuring to prepare for the common market expansion due in N has become more of a strategic priority both for companies inside and outside the european community + in the second quarter <unk> cross-border transactions deals under $ N million each numbered N and totaled $ N billion compared with N such transactions totaling $ N billion a year earlier the firm said + large cross-border deals numbered N and totaled $ N billion in the second quarter the firm added + that compared with N such transactions totaling $ N billion as year earlier + <unk> foods inc. said its board authorized the purchase of as many as N of its common stock purchase warrants at a price of $ N a warrant + the food company which has N warrants and about N million common shares outstanding said it may increase the offer to purchase any or all warrants that are properly tendered + a warrant permits a holder to acquire one share of common stock for $ N a share + the warrants expire on oct. N N and may be called by the company at a price of $ N + the offer is scheduled to expire on nov. N unless extended + in new york stock exchange composite trading <unk> closed yesterday at $ N down N cents + seasonal <unk> + <unk> problems though often quite grim this time of year leave us in <unk> when we notice around our airport a holding pattern for <unk> + edward f. <unk> + <unk> + i am <unk> myself i 've said in moments of heat without ever <unk> to <unk> at the feat + <unk> adams + <unk> <unk> + the ultimate blow to the <unk> is learning that even your mistakes go <unk> + <unk> ball + gen-probe inc. a biotechnology concern said it signed a definitive agreement to be acquired by chugai pharmaceutical co. of tokyo for about $ N million or almost double the market price of gen-probe 's stock + the move is sure to <unk> concerns about increased japanese investment in u.s. biotechnology firms + it is also likely to bolster fears that the japanese will use their <unk> in u.s. biotechnology concerns to gain certain trade and competitive advantages + gen-probe an industry leader in the field of genetic <unk> which is a new technology used in diagnostic tests last year signed an agreement for chugai to exclusively market its diagnostic products in japan for <unk> diseases and cancer + chugai agreed then to fund certain associated research and development costs + that arrangement apparently has worked well and thomas a. bologna president and chief executive officer of gen-probe founded in N said the sale of the company means we will be able to concentrate on running the business rather than always looking for sources of financing + chugai agreed to pay $ N a share for gen-probe 's N million common shares outstanding on a fully diluted basis + yesterday in national trading in the over-the-counter market gen-probe common closed at $ N a share + because the u.s. leads in most areas of biotechnology largely because of research investment by the u.s. government the sale is sure to increase concerns that japanese companies will buy american know-how and use it to obtain the upper hand in biotechnology trade and competition + the biotechnology firms may be setting up their own competitors said richard <unk> president of the industrial biotechnology association + he added that until now the japanese have only acquired equity positions in u.s. biotechnology companies + they are <unk> onto developed technology he said + during the past five years japanese concerns have invested in several of the u.s. 's N independent biotechnology companies + chugai has been one of the most active japanese players in u.s. biotechnology companies it has an equity investment in genetics institute inc. cambridge mass. and a joint-venture agreement with upjohn co. <unk> mich + the japanese government mr. <unk> said has stated that it wants N N to N N of its gross national product to come from biotechnology products + it is becoming more of a horse race every day between the u.s. and japan he said adding that some fear that as with the semiconductor electronics and automobile industries japanese companies will use <unk> technology to gain trade advantages + mr. bologna said the sale would allow gen-probe to speed up the development of new technology and to more quickly apply existing technology to an array of diagnostic products the company wants to offer + by N when only N genetic <unk> tests of diagnostic <unk> diseases of humans had been approved for marketing by the food and drug administration eight of them had been developed and sold by gen-probe + <unk> <unk> deputy president of chugai which spends about N N of its sales on research and development was unable to pinpoint how much money chugai would pump into gen-probe + we think gen-probe has technology important to people 's health he said adding we think it is important for us to have such technology + he and mr. bologna emphasized that both companies would gain technological knowledge through the sale of gen-probe which will expand significantly as a result of the acquisition + in N chugai had net income of $ N million on revenue of $ N million + <unk> had a net loss of $ N million on revenue of $ N million + recently gen-probe received a broad u.s. patent for a technology that helps detect identify and <unk> <unk> <unk> through the targeting of a form of genetic material called <unk> <unk> + among other things mr. bologna said that the sale will facilitate gen-probe 's marketing of a diagnostic test for acquired immune deficiency syndrome or aids + chugai also will help gen-probe with its regulatory and marketing expertise in asia mr. bologna said + the tender offer for gen-probe 's shares is expected to begin next monday the company said + it was supposed to be a routine <unk> call + a <unk> soviet space officials in tokyo in july for an exhibit stopped by to see their counterparts at the national space development agency of japan + but after a few <unk> the soviets unexpectedly got serious + the soviets have a <unk> space program the guests noted + would n't the japanese like a piece of it + the visitors then listed technologies up for sale including launch services and <unk> hardware + we were just surprised says <unk> <unk> <unk> 's director for international affairs + shocked + that moscow with its <unk> economic machine would try to sell high technology to japan one of the world 's high-tech leaders sounds like a <unk> notion + but the soviet union has areas where it is n't behind japan says mikhail <unk> of the soviet ministry of foreign economic relations + we have obtained through the development of <unk> the soviet space program technologies you do n't see anywhere else + the sales pitch might n't be as <unk> as it seems + <unk> trade relations are <unk> these days and some japanese favor <unk> their reliance on u.s. technology in light of the <unk> <unk> <unk> when u.s. officials reversed an earlier decision and refused to share certain crucial <unk> technology + and despite its image as a technology <unk> japan has a lot of weaknesses + it 's a world leader in semiconductors but behind the u.s. in making the computers that use those chips + it 's a world leader in auto manufacturing but its aviation industry is struggling and its space program is years behind the u.s. the europeans and the soviets + one question being <unk> in the soviet union is how to use the defense sector 's <unk> expertise in the rest of the economy + many plants that used to make military equipment are now being ordered to produce <unk> videocassette recorders small <unk> and <unk> machinery + the soviets also hope to make better use of their considerable expertise in theoretical science which has helped them win twice as many nobel science prizes as the japanese + where they lag behind the japanese is in turning the scientific <unk> into improved production + by contrast the japanese have proved <unk> at making use of soviet <unk> + kobe steel ltd. adopted soviet casting technology in N and used it for N years until it developed its own system + <unk> steel corp. bought a soviet <unk> patent two years ago and has jointly developed the system with the soviets + in N the soviets will take a japanese journalist into space the first japanese to go into <unk> + soviet efforts to sell their technology abroad do n't appear to worry the u.s. japan 's principal ally + we have never opposed the development of economic relations between our allies and the soviet union says a state department official + frankly i would n't expect the japanese to get <unk> on anybody 's technology least of all the soviets + under mikhail gorbachev 's perestroika the soviets have sought economic ties all over the world including new export markets + they believe technology is one of their best bets and some soviet officials say moscow will even consider <unk> military know-how if the price is right + the soviets held export <unk> that included high-tech items in new york and west germany + last week a soviet delegation came to japan to push more space technologies + japan is a major target for the soviets + in august representatives of <unk> japan 's largest business organization visited moscow to explore exports and investments that would help the soviet economy + out of the blue the soviet chamber of commerce handed over details on N technologies that the japanese might want to buy + these mainly involved such areas as materials advanced <unk> machines for example and medical developments derived from <unk> in space such as <unk> blood vessels + a main motive is hard cash + but while the soviets ca n't expect direct technology flow from japan they also hope to benefit from japanese manufacturing expertise + the soviet union has a lot of know-how but it has been difficult to put that into actual production because of various structural problems in the economy says mr. <unk> the foreign ministry official + the soviets are contemplating a flexible system under which it would be possible to develop technology jointly and even to market it jointly he says + even if the japanese find soviet technology desirable such discussions would be <unk> with political <unk> + still <unk> from the international backlash over the sale two years ago of sensitive military technology to the soviets by a subsidiary of japan 's toshiba corp. many japanese are eager to avoid appearing to help the soviets in any way + another hurdle concerns japan 's attempts to persuade the soviet union to <unk> its <unk> war ii control of four islands north of japan + so far the soviets have provided only the <unk> information about their technology and business plans + and what they have shown is n't impressive + my impression is that there is n't anything which <unk> our interest at first <unk> says an official from japan 's ministry of international trade and industry + peter <unk> in moscow contributed to this article + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + may N N signaled a <unk> may day for securities houses which were forced to end N years of charging fixed commissions + it scared brokers but most survived + it took effect after seven years of bitter debate between the securities and exchange commission and traders and exchanges + despite warnings from such leaders as former federal reserve board chairman william <unk> martin that <unk> commissions would undo the industry the sec in september N said full competition must start may <unk> N + the timing for change was right + institutions had become active market players in the early 1970s and sought exchange seats to handle their own trades + and the industry was <unk> with brokers trying to secure big client orders by using <unk> gifts women and <unk> + within three weeks of the N end to fixed rates there were <unk> price wars among brokers fighting for institutional business with rate <unk> of N N to N N below <unk> N levels + ray <unk> jr. sec chairman said the <unk> and <unk> of the discounting is more than i expected + even a federal measure in june allowing houses to add research fees to their commissions did n't stop it + longer term the impact is unclear + the change prompted the rise of discount brokers and a reduction in securities research firms + but there are currently more exchange members than in N with the bigger houses gaining a larger share of total commissions + commissions however account for a smaller share of <unk> business as takeover advisory fees have soared + foreign stock markets with which the u.s. is <unk> also have ended fixed commissions in recent years + it came in london 's big bang N deregulation and toronto 's little bang the same year + paris is currently <unk> out fixed commissions under its <unk> <unk> bang plan + president bush said that three members of his cabinet will lead a presidential mission to poland to gauge how the u.s. can help the new <unk> government 's economic changes + mr. bush announced several weeks ago that he intended to send such a mission composed of top government aides and business and labor leaders + the mission will visit poland from nov. N to dec. N the white house said + in remarks at a white house <unk> marking polish heritage month mr. bush announced that agriculture secretary <unk> <unk> commerce secretary robert mosbacher and labor secretary elizabeth dole will lead the u.s. group + michael <unk> chairman of the council of economic advisers also will be a member + in addition the white house said that charles harper chairman of <unk> inc. and john <unk> chairman of manufacturers hanover corp. will be among a group of at least N business and labor representatives in the presidential mission + mr. bush said the group is to focus on economic sectors where u.s. expertise and cooperation can indeed make a difference + mr. bush has asked congress to provide more than $ N million in economic aid and food grants for poland 's new government but has been <unk> by democrats for failing to do more + warner communications inc. is close to an agreement to back a new recorded music and music publishing company in partnership with irving azoff who resigned in september as head of mca inc. 's mca records unit + warner and mr. azoff declined comment as did mca where mr. azoff had also been discussing such a venture + but record industry executives familiar with the talks said mr. azoff and warner came to an agreement yesterday to form a N joint-venture company funded by warner and run by mr. azoff + among other things they said mr. azoff would develop musical acts for a new record label + the agreement is said to be similar to warner 's N partnership with record and movie producer david <unk> whose films and records are distributed by the warner bros. studio and the warner records unit + although mr. azoff wo n't produce films at first it is possible that he could do so later the sources said + like mr. <unk> 's arrangement the venture gives mr. azoff a link to the world 's largest and most successful record distributor in the u.s. alone warner has a N N share of the market about double its <unk> competitor sony corp. 's cbs records + for warner meanwhile it gives the company a second young partner with a finger on the <unk> of the hottest trends in the music business + the <unk> mr. azoff a former rock <unk> roll manager is credited with turning around mca 's <unk> music division in his six years at the company + but mr. azoff had been negotiating for more than a year to get out of his mca contract which expired in N + mr. azoff reportedly was <unk> and frequently <unk> with top mca management over a number of issues such as compensation and business plans + mr. azoff also was eager to return to a more entrepreneurial role in which he had a big financial stake in his own efforts + in an interview at the time of his resignation from mca he said i 'd rather build a company than run one + part of a series + tom <unk> had a perfectly good reason for not using the $ N <unk> machine he bought three years ago + i <unk> a bad <unk> <unk> got food <unk> and had to have a shot in my shoulder he says making it too painful to row + the <unk> he admits went away about a week after the shot + yet the <unk> machine has n't been touched since even though he has moved it across the country with him twice + a san francisco lawyer mr. <unk> <unk> <unk> when he first got the machine but he complains it left <unk> marks on his carpet and it was boring + it 's a horrible machine actually + i 'm <unk> i own the stupid thing + mr. <unk> has plenty of company + nearly <unk> of the people who own home exercise equipment do n't use it as much as they planned according to the wall street journal 's american way of buying survey + the roper organization which conducted the survey said almost half of the exercise equipment owners found it <unk> than they expected + it is n't just exercise gear that is n't getting a good workout + the fitness craze itself has gone soft the survey found + fewer people said they were working up a sweat with such activities as <unk> tennis <unk> and <unk> + half of those surveyed said they simply walk these days for exercise + that 's good news for marketers of walking shoes + the survey also detected a bit more interest in golf a positive sign for country clubs and golf club makers + the survey 's findings certainly are n't encouraging for marketers of <unk> <unk> tennis <unk> and home exercise equipment but people 's good intentions if not their actions are keeping sales of some fitness products healthy + for instance sales of <unk> exercise bikes <unk> <unk> and the like are expected to rise N N to about $ N billion this year according to the national sporting goods association which sees the home market as one of the hottest growth areas for the 1990s + but even that group knows some people do n't use their machines as much as they should + the first excuse is they do n't have enough time says research director thomas doyle + the second is they do n't have enough discipline + with more than N million exercise bikes sold in the past five years he adds a lot of <unk> <unk> and <unk> must be <unk> with them + still the average price of such bikes rose last year to $ N + mr. doyle predicts a trend toward fewer pieces of home exercise equipment being sold at higher prices + electronic <unk> are key + <unk> international inc. for example <unk> the <unk> electronic cycling <unk> a $ N <unk> cycle + on a video screen riders can see N different <unk> including urban mountain and desert scenes and check how many <unk> are burned a minute + nancy <unk> who works in corporate payments at bank of america in san francisco may be a good prospect for such a <unk> + she 's trying to sell a $ N exercise bike she bought about five years ago for her <unk> + but rather than write off home fitness equipment she traded up ms. <unk> just paid about $ N for a <unk> <unk> bike with a <unk> <unk> showing average and maximum speeds and a comfortable seat that feels almost like a chair + i 'm using it a lot she says + i spent so much money that if i look at it and i 'm not on it i feel guilty + the poll points up some <unk> between what people say and what they do + a surprising N N of people said they exercise regularly up from N N in N + this <unk> up images of a nation full of trim <unk> folks and suggests <unk> potatoes are out of season + of course that is n't really the case + the <unk> may be because asking people about their fitness regime is a bit like <unk> about their love life + they 're bound to <unk> + people say they <unk> and that may mean they 've been to the beach this year says <unk> spain research specialist for the president 's council on physical fitness and sports + it 's hard to know if people are responding <unk> + people are too embarrassed to say they have n't done anything + while she <unk> the fact that more americans are getting up from the television to <unk> or garden she says the percentage of americans who do real exercise to build the heart is only N N to N N + so many people <unk> on answers about exercise the president 's council now uses specific criteria to determine what is considered vigorous it must produce <unk> of large muscle groups must achieve N N of maximum <unk> capacity and must be done three or more times a week for a minimum of N minutes + one of the council 's goals set in N was to see more than N N of adults under N years of age getting vigorous exercise by N + that target has been revised to N N by the year N + but even that goal may prove optimistic + of N activities the journal survey found that N including <unk> skiing and <unk> are being done by fewer americans today than eight years ago + time pressures and the <unk> of the fitness fad are cited as reasons for the decline + only walking and golf increased in popularity during the 1980s and only slightly + <unk> <unk> a california lawyer gave up running three times a week to play a weekly round of golf finding it more social and <unk> + it 's an activity she feels she can do for life and by pulling a golf <unk> she still gets a good workout + i 'm really wiped out after walking five hours she says + most people said they exercise both for health and <unk> + if you sit down all the time you 'll go stiff says <unk> <unk> a <unk> n.c. <unk> who walks several miles a week + and it 's <unk> + sometimes if you have a <unk> you can go out and walk it right off + only about a quarter of the respondents said they exercise to lose weight + slightly more like leslie <unk> a law <unk> in san francisco who <unk> dance <unk> five times a week exercise to relieve stress + working with lawyers she says i need it + but fully N N of those polled felt they did n't need to belong to a health club + they 're too crowded and everybody 's showing off says joel bryant a <unk> student from pasadena calif + the guys are being <unk> and the <unk> are walking around in little things + they 're not there to work out + but at least they show up + nearly half of those who joined health clubs said they did n't use their membership as often as they planned + feeling they should devote more time to their families or their jobs many <unk> are <unk> their <unk> workout + even so the association of quality clubs a <unk> trade group in boston says membership revenues will rise about N N this year from last year 's $ N billion + a spokeswoman adds however that the group is considering offering a <unk> course similar to a <unk> program to teach people ways to stay with it + there are <unk> bodies of course + the <unk> of <unk> west an <unk> studio in san francisco 's marina district which was hit hard by the earthquake says people were going <unk> the minute we opened three days after the quake + the emotional aspect is so <unk> they needed a good workout + perhaps the most disturbing finding is that the bowling alley may be an endangered american institution + the survey reported the number of people who said they bowl regularly has fallen to just N N from N N in N + the american bowling congress claims a higher percentage of the public <unk> regularly but concedes its membership has declined this decade + to find out why the group recently commissioned a study of the past N years of <unk> research + three reasons were <unk> a preference for watching bowling and other sports on television rather than actually bowling <unk> bowling centers and <unk> with bowling itself + people who start bowling expecting it to be a <unk> exercise have been generally disappointed the report said + but not richard <unk> a san francisco <unk> driver who <unk> in two weekly <unk> + he hit the <unk> three years ago on the advice of his doctor + it 's good exercise he says + i ca n't do anything <unk> but i like meeting the <unk> + he says bowling helps him shed pounds though that effort is sometimes <unk> by the fact that when i 'm drinking i bowl better + his tuesday night team the <unk> is in first place + wpp group 's ogilvy & mather expects profit margins to improve to N N in N in the u.s. + yesterday 's edition did n't specify where the improvement would take place + concerning your sept. N article retailers face cutbacks uncertain future the outcome of our leveraged <unk> is looking very positive + unlike most of the other retailers mentioned in the story <unk> a. bank <unk> inc. is not in serious financial problems + we did experience some difficulties with the initial lbo terms and as your article made clear successfully restructured our debt earlier this year something those other retailers have yet to accomplish + your were on target regarding industry problems but wide of the mark in portraying the financial health of this company + chairman and ceo <unk> a. bank <unk> inc. <unk> mills md + private housing starts in japan were unchanged in september from a year earlier at N units the construction ministry said + the flat report followed a <unk> string of declines + the down trend was partly the result of tighter credit sparked by a discount rate increase by the bank of japan in may + the central bank also unexpectedly raised the base rate by half a percentage point to N N oct. N as part of an <unk> move that indirectly increases interest rates charged on new home construction loans + if there 's <unk> strange in your neighborhood + if there 's something weird and it do n't look good + who <unk> <unk> <unk> call + for <unk> some people call ed and <unk> warren + when it comes to <unk> ghosts the <unk> conn. couple are perfect <unk> + they claim to have <unk> spirits <unk> and other <unk> in hundreds of houses around the country + they say they now get three or four legitimate calls a week from people <unk> by haunts + i firmly believe in angels <unk> and ghosts says mr. warren whose business card <unk> him as a <unk> + if <unk> do n't work but your house still seems <unk> you can call any one of a swelling band of skeptics such as richard <unk> + a professional <unk> and <unk> he heads the pittsburgh branch of the committee for the scientific investigation of the <unk> + mr. <unk> says there is a scientific explanation for all haunts and he can even tell you how to encourage the spirits + all you have to do is eat a big pizza and then go to bed he says + you 'll have weird dreams too + either way the <unk> business is going like <unk> + <unk> of haunts and <unk> are <unk> beyond the nation 's <unk> streets and <unk> + i get calls nearly every day from people who have ghosts in their house says raymond hyman a skeptical psychology professor at the university of oregon + in a public opinion poll published in the october issue of parents magazine a third of those <unk> said they believe that ghosts or spirits make themselves known to people + the movies the books the <unk> even nancy reagan is boosting this stuff says paul <unk> a philosophy professor at the state university of new york at <unk> who heads the committee for the scientific investigation of the <unk> + the committee formed in N now has N <unk> around the world + the spirits of course could hardly care less whether people do or do n't believe in them + they do n't even give a <unk> to human <unk> by celebrating halloween + for the <unk> it 's just another day of <unk> business as usual <unk> say the holiday seems to occasion no unusual number of ghost reports + one of the busiest <unk> is robert baker a <unk> <unk> university of kentucky psychology professor whose <unk> gray <unk> <unk> at the mere mention of a ghost + mr. baker says he has personally <unk> more than N haunts from aliens to <unk> + mr. baker heads the kentucky association of science educators and skeptics + like hollywood 's <unk> kentucky 's stand ready to roll when haunts get out of hand + but they do n't <unk> around in an old cadillac wear funny suits or blast away at <unk> spirits + mr. baker drives a N chevy and usually wears a <unk> <unk> on his <unk> <unk> + i 've never met a ghost that could n't be explained away by perfectly natural means he says + when a louisville woman complained that a ghost was <unk> her <unk> mr. baker discovered a <unk> dragging a trap across the <unk> + a <unk> <unk> supposedly plagued a house in <unk> <unk> + mr. baker found an opening under the house that led to a <unk> coal mine + when the weather <unk> mr. baker says <unk> often hole up in abandoned houses + people see activity in there and the next thing you know you 've got a <unk> he says + on a recent afternoon mr. baker and a reporter go <unk> visiting <unk> <unk> a lexington woman who has <unk> the university of kentucky to report <unk> <unk> in her house + mrs. <unk> says she never believed in ghosts before but lately her vacuum cleaner turned itself on a telephone flew off its stand doors <unk> <unk> and she heard <unk> in her empty kitchen + i was doing the <unk> and nearly broke my neck running <unk> to see who was there and it was nobody she says eyes wide at the <unk> + mr. baker <unk> her out <unk> around a bit asks a few questions and proposes some <unk> + of the <unk> vacuum cleaner he says could be <unk> mrs. <unk> 's dog + the flying telephone you <unk> the base <unk> around a chair leg and the receiver does seem to fly off + the <unk> <unk> interstate N is a block away and heavy traffic can sure set a house to <unk> + i 'm not sure he 's explained everything mrs. <unk> says <unk> + there are some things that have gone on here that nobody can explain she says + mr. baker promises to return if the <unk> continues + for especially <unk> haunts mr. baker carries a secret weapon a <unk> of <unk> + i tell people it 's the <unk> <unk> of <unk> he says + i <unk> a little around and tell the <unk> to leave + it 's reassuring and it usually works + oregon 's mr. hyman has investigated claims of flying <unk> <unk> and <unk> <unk> and has come up with a <unk> explanation he says for every one + invariably he says <unk> are <unk> + two years ago a canadian reader bet omni magazine $ N that it could n't <unk> the <unk> <unk> in the oregon <unk> a former indian <unk> ground in southern oregon + to viewers from a distance visitors to the spot seemed to shrink <unk> relative to the background + the magazine called in mr. hyman as a consultant + he showed up with a carpenter 's level carefully measured every surface and showed how the apparent <unk> was caused by the perspective + a very striking illusion mr. hyman says now his voice <unk> with skepticism but an illusion nevertheless + the canadian wound up writing a check + the rev. <unk> <unk> a <unk> professor and <unk> expert at st. <unk> university in <unk> n.y. frequently is asked to <unk> <unk> spirits and he often <unk> + on certain occasions a spirit could be <unk> and make itself known he says + it happens + father <unk> often uses what he calls a <unk> <unk> a few <unk> and an <unk> to the spirit to leave + if the person believes there 's an evil spirit you ask it to be gone he says + the suggestion itself may do the <unk> + but sometimes more energetic attacks are required + to <unk> with a <unk> in a house owned by a <unk> conn. woman the <unk> recently called in an <unk> the rev. robert <unk> a dissident <unk> who <unk> to the catholic church 's old latin <unk> + i attend and so does a television crew from new york city + mr. warren <unk> the <unk> case your typical <unk> <unk> + a scottish <unk> built the small red house N years ago and now his <unk> ghost haunts it mr. warren says + the owner who <unk> <unk> asserts that the <unk> appearing as a dark shadow has <unk> her <unk> her around the living room and <unk> out a <unk> of hair + two previous <unk> have failed + this is a very <unk> ghost mr. warren says <unk> + father <unk> moves through the house <unk> in latin urging the <unk> to split + suddenly the woman begins <unk> and then <unk> + she 's being attacked by the <unk> mrs. warren <unk> as the <unk> <unk> <unk> water over the <unk> woman and the television camera <unk> + a half-hour later the woman is smiling and <unk> the <unk> seems to have gone + but mr. warren says the woman has <unk> burns on her back from the confrontation + she declines to show them + this was an <unk> powerful force that 's almost impossible for a <unk> to <unk> mr. warren says <unk> as the <unk> <unk> <unk> up to leave + this time though he says i think we got it + <unk> from <unk> by ray s. parker jr. N by golden <unk> music corp. <unk> and <unk> music <unk> + all administrative rights for the u.s. jointly controlled by both companies + international copyright secured + made in usa + all rights reserved + <unk> by permission + brokerage hiring <unk> amid market turmoil + but <unk> earn more + shearson lehman hutton inc. counts under N workers down N from the start of the year and off N from after its merger and the market collapse two years ago + another major firm has cut N workers N N of its staff since black monday + the bureau of labor statistics says securities firms in new york city alone have slashed N jobs from the december N peak of N + average annual earnings of those who have hung on though surged to $ N last year from $ N in N + any hiring is confined to retail sales + illinois company investments had been trimming its ranks until last summer + but then it was acquired by household international inc + now it offers richer commissions to lure a broker a week + <unk> lane inc. this year adds N people N of them in retail to its <unk> staff + a.g. edwards & sons runs training classes and looks for experienced brokers + we 're always going to hire someone we consider to be a winner an edwards official says + skilled workers <unk> are available to cope with earthquake damage + i do n't <unk> any shortages over the next few months says ken allen an official of operating engineers local N in san francisco + ironically up until the quake we desperately tried to fill jobs especially for crane and <unk> operators + but the oct. N temblor put a halt to much <unk> building and heavy <unk> last week slowed the rest <unk> construction workers for earthquake repairs + the supply of experienced civil engineers though is tighter + in recent months california 's transportation department has been recruiting in pennsylvania arizona and texas for engineers experienced in road and bridge design + but with the state offering only $ N a year and california 's high standard of living there are n't too many to choose from says <unk> scott a recruiting officer + he says the department now has N <unk> and wants to hire N civil engineers over the next N months + the irs may <unk> what the labor department <unk> + but stay <unk> + <unk> specialists drew a collective sigh of relief in early october when the labor department backed away from a proposal that companies let former employees and beneficiaries along with active workers borrow against <unk> in N k and similar savings plans + in an advisory letter the department said that starting oct. N loans could be limited to parties in interest which generally means active workers but also includes <unk> who continue as directors and N N shareholders + now comes word that irs regulations being drafted could put companies in violation of the tax code if they make loans to <unk> shareholders and directors but do n't make them available to other former workers who usually earned less + the irs says the question wo n't be settled until the regulations are issued shortly + but violation could bring substantial tax penalties to both employer and employees + it 's a severe case of regulatory <unk> complains henry <unk> of consultant a. foster <unk> & co + frederick <unk> of buck consultants has asked labor to <unk> its rule to remove the irs threat + corporate <unk> digs deeper + <unk> consultant right associates says the average pay of its clients fell to $ N last year from $ N in N severance pay dropped to N weeks from N + both reflect the dismissal of <unk> and <unk> executives + first teach <unk> + executives <unk> believe workers should know their <unk> benefits + but three out of four managers ca n't accurately state the value of their own packages consultant noble <unk> says + <unk> <unk> + fully N N of the doctors surveyed for metropolitan life insurance co. think their fellow physicians are responsible for rising health-care costs ahead of hospitals N N and patients N N + no you work + only one in four companies with flexible benefit plans lets workers buy or sell vacation days consultant towers <unk> says + employees like the option but firms say it 's too tough to run + students <unk> burger <unk> for jobs tied to careers + some even study + fast-food jobs are n't popular no matter what they pay says a <unk> official + working students she explains want some satisfaction + university of michigan students look for jobs related to planned careers + <unk> mellon though says some students conclude they can help their careers most by hitting the books they 're <unk> to build their <unk> through good grades and leadership roles in <unk> + slowing economies in some areas limit student choice + student job <unk> at boston university slip N N this year following a N N drop in N + still the school says there are an ample number and pay is up to $ N an hour from $ N last year + <unk> candidates at the university of pittsburgh earn up to $ N an hour on marketing or computer projects + the <unk> <unk> <unk> + <unk> corp. <unk> a university of wyoming graduate with degrees in <unk> and petroleum engineering for $ N an hour to tend wood fires at a colorado ski resort + is somebody telling us something + our copy of <unk> <unk> labor comes through the mail <unk> around two sections of baseball card news + democracy is making a return with a <unk> to latin america 's most <unk> and deeply <unk> country + on nov. N when <unk> <unk> a president for the first time in N years the country 's N million voters will have N candidates to choose from + the candidates have been <unk> this huge country of N million people holding rallies and televised debates in hope of being elected to what must be one of the world 's most <unk> political jobs trying to drag brazil out of its economic and social mess + i feel sorry for whoever wins says a brazilian diplomat + who that winner will be is highly uncertain + a <unk> candidates backing policies ranging from <unk> to <unk> <unk> are given a chance of winning + whoever says he knows which of the six will win is out of his mind says antonio <unk> a <unk> member of parliament + the favorite remains fernando <unk> de <unk> a 40-year-old former governor of the state of <unk> + he came out of nowhere to grab the lead in opinion polls probably less because of his vague program to build a new brazil than because of his good looks the open backing of the powerful <unk> <unk> television network and his reputation as a hunter of <unk> or <unk> and <unk> civil <unk> + but after building up a commanding lead the moderate to conservative mr. <unk> has slipped to about N N in the polls from a high of about N N only a few weeks ago + to avoid a <unk> one candidate would have to win N N of the vote a feat that most analysts consider impossible with so many candidates running + two <unk> politicians socialist <unk> <unk> a former governor of <unk> de <unk> state and <unk> luis <unk> <unk> <unk> currently are running neck and neck at about N N and three other candidates are given a chance of reaching the dec. N <unk> election between the two biggest <unk> social democrat mario <unk> and two conservatives <unk> <unk> <unk> a former governor of the state of <unk> <unk> and <unk> <unk> <unk> + the uncertainty is sending <unk> through brazilian financial markets + the dollar the best indicator of the country 's mood has skyrocketed on the parallel market as has gold + capital flight is reported to be strong + the big question is whether the new president will have the strength and the political support in congress to take steps to cure brazil 's economic <unk> + president jose <unk> who took office in N when the man picked by an electoral college became <unk> ill appears to be simply trying to avoid <unk> + the unpopular mr. <unk> whose task was to bring about a smooth transition to democracy after N years of military rule is n't seeking re-election + what comes out of the ballot box could be crucial in determining whether brazil finally lives up to the potential of the world 's eighth largest economy or keeps living up to its other less <unk> title that of the developing world 's largest <unk> <unk> on the brink of <unk> mired in deficits and <unk> with huge economic <unk> and social <unk> <unk> under the surface + if brazil <unk> an economic strategy allowing it to resume growth and service debt this could lead it to open up and <unk> its <unk> economy analysts say just as <unk> president carlos saul <unk> has been doing even though he was elected on a <unk> platform + depending on the president we could either be a <unk> economy by the end of the century or stay where we are says political scientist <unk> de <unk> + and where we are is bad + despite <unk> efforts by finance minister <unk> <unk> <unk> <unk> inflation came to N N in september alone and is expected to top N N for the year + that might have been considered <unk> not long ago but argentina <unk> price increases of almost N N in july before bringing the rate down sharply in august and september + still massive internal debt has forced the government to borrow <unk> on the domestic market and to offer inflation-adjusted returns of N N to N N a month just to get investors to hold on to its paper + about $ N billion is estimated to be tied up in the short-term money market which acts both as a hedge against inflation for consumers and an <unk> of inflation and deficits for the government + by some estimates brazil 's internal debt or combined public deficit could reach N N of its $ N billion gross domestic product + much of the money goes into subsidies or keeping inefficient state-controlled companies operating + among the results is a frequent breakdown of public services + it 's not uncommon to wait three minutes for a dial tone after picking up the telephone and then to be interrupted by a busy signal before finishing dialing the number + officials also say a national electricity shortage might not be far off + economists businessmen and some politicians agree that the answer is an orthodox economic <unk> program including reduced state spending focusing spending on vital areas such as education health and welfare turning state companies private <unk> the tax system raising public service rates to match costs and possibly a temporary wage and price freeze and a devaluation of the <unk> + analysts also say it 's inevitable that brazil will seek to <unk> its $ N billion foreign debt on which it suspended interest payments last month + analysts say however that a tough economic program would have to be accompanied by measures to shield the poor from its <unk> effects for instance by subsidizing <unk> food items + about N N of brazil 's voters are believed to live near the poverty level + of the three candidates with a serious chance of winning mr. <unk> comes <unk> to <unk> the sort of measures that economists say are necessary + but his <unk> raises doubts that he would have the political power to carry them out + the <unk> mr. <unk> has been vague about his intentions and often <unk> in his rhetoric but analysts say he probably would be <unk> + mr. <unk> <unk> a <unk> former factory worker and labor leader is the most radical <unk> to <unk> payments on the foreign debt and saying he would n't go around putting the country up for sale to the highest bidder + but despite the differences in what they say according to some analysts here economic constraints mean the next president may not have many choices about what he does + hospital regulation <unk> kentucky <unk> + which is the best medicine for runaway health costs competition or regulation + the question is at the root of a <unk> between humana inc. the big <unk> hospital and insurance company and its <unk> <unk> in its home state of kentucky + the battle focuses on the state 's <unk> law which <unk> investment in new medical technology + the law has prevented $ N million of unnecessary expenditures since N according to william s. conn president of the kentucky hospital association + but according to david jones humana 's chief executive it <unk> technology monopolies <unk> innovation and raises prices + if the legislature does n't repeal the law due for revision in N mr. jones says humana may move its insurance operations including N jobs in louisville to another state + the company complains that it paid $ N million to <unk> hospitals in its latest fiscal year for services provided to its insurance plan members + but humana says its own facilities could serve its insured for less if they were properly equipped + mr. conn charges that humana 's own actions undermine its argument + when a hospital in lexington installed a <unk> last year demand for a similar <unk> <unk> machine at a humana hospital in louisville fell N N + the humana hospital responded by <unk> up prices to make up for lost revenue mr. conn says and now charges as much as $ N for the procedure which costs only about $ N in lexington + humana contends that $ N represents an extreme case and that its regular charge for <unk> is $ N + meanwhile another hospital 's proposal for a <unk> <unk> is pending before the board that <unk> the <unk> law + humana which wants to acquire one of the new machines itself is on the record as opposed to the proposal + <unk> doctors seek financial security + health-care experts have long worried that young doctors emerging from medical school with a mountain of debt will choose careers in <unk> <unk> instead of primary care where more physicians are needed most + now there 's a new <unk> in what young doctors want more than half of N residents responding to recent survey said they 'd prefer a guaranteed salary over traditional <unk> compensation in their first professional position + and N N preferred a group practice or health maintenance organization while just N N favored solo practice + ten years ago a physician would go to a town and take out a loan to start a practice says james <unk> president of <unk> <unk> & associates an irvine calif. physician <unk> that conducted the survey + they wo n't do that very often today at all + they 're looking for something that 's very safe + the numbers behind such fears the average debt of medical school graduates who borrowed to pay for their education jumped N N to $ N this year from $ N in N says the association of american medical colleges + that 's N N more than in N + money is n't the only reason for the shift in practice preferences + it reflects values of a generation that wants more time for families and personal interests says john h. <unk> iii who directs <unk> searches for <unk> international + this is a change in the social fabric of medicine he says + related <unk> trim hospital bills + when <unk> <unk> spent several weeks at the medical center of vermont recently with a bone infection in her <unk> she shared a room just like most patients + but unlike most patients her <unk> was her husband + it was certainly good to have him handy mrs. <unk> says + the <unk> cooperative care unit is one of about N nationwide where a family member or friend helps care for a patient in the hospital + the philosophy is to make the patient and the family very responsible for a portion of their own care says anthony j. <unk> medical director of cooperative care at new york university medical center where the concept began N years ago + it helps us and them while they 're here and it certainly makes them a better health-care team when they get home + it also <unk> money + because patients require less attention from nurses and other staff room charges are lower about $ N less per day than a regular room at the vermont hospital + cancer patients <unk> prolonged radiation therapy diabetics learning to manage their blood sugar levels and <unk> <unk> patients are among those who spend time on <unk> units + the approach has generated so much interest that <unk> is host to the first conference on cooperative care nov. N + it 's really part of the hospital of the <unk> century dr. <unk> says + odds and ends + the chief nursing officer can be responsible for more than N employees and at least one-third of a hospital 's budget a head <unk> typically oversees up to N employees and $ N million + so says the commonwealth fund a new york <unk> that 's <unk> a $ N million project to develop joint masters in business and nursing programs at N universities + <unk> medical college in <unk> tenn. <unk> a new research publication in the spring the journal on health care for the poor and <unk> + a group of michigan investors has offered to buy knight-ridder inc. 's ailing detroit free press for $ N million but has left unclear how the offer will be financed + the offer came just prior to arguments before the u.s. supreme court over whether the free press should be allowed to enter into a joint operating pact with <unk> co. 's detroit news + the group led by birmingham mich. <unk> william d. <unk> did n't name an investment banker backing the deal or say how much its members will contribute to the offer + indeed some individuals identified with the group said they have n't committed any money to the bid and were n't aware of it until they heard about it in local news accounts over the weekend + knight-ridder would n't comment on the offer + the company has said the paper is n't for sale and has rebuffed mr. <unk> 's earlier requests for access to free press financial statements + in his letter to knight-ridder president james k. <unk> mr. <unk> said he arrived at the $ N million figure using knight-ridder 's corporate financial statements and comments by knight-ridder officials that the free press has a $ N million value in salvage + but in an interview mr. <unk> said he and his investment banker would need access to full financial records before <unk> up the offer + mitsui & co. said it started a joint venture with <unk> <unk> chemical co. a major pharmaceutical manufacturer in south korea to manufacture <unk> <unk> + the new company is capitalized at about $ N million + mitsui expects the <unk> products to be exported to southeast asia and africa + it also hopes to enter the u.s. market + nrm energy co. said it filed materials with the securities and exchange commission calling for it to restructure into a corporation from a limited partnership + the partnership said it is proposing the change largely because the provisions of its senior notes restrict it from making distributions on its units outstanding + nrm suspended its common distribution in june N and the distribution on its $ N cumulative convertible acquisition preferred units in september + however unpaid distributions on the acquisition preferred are cumulative and would total $ N million a year hurting nrm 's financial flexibility and its ability to raise capital nrm said + in following several other oil and gas partnerships that have made the conversion to a corporation in the last year nrm also noted that tax advantages for partnerships have diminished under new tax laws and said it would save $ N million a year in administrative costs from the change + under the plan nrm said holders of its common units will receive one share of new common stock in edisto resources corp. for every N common units owned + holders of nrm 's $ N cumulative convertible acquisition preferred units will receive one new common share in edisto for every N units they own + after the transaction current common <unk> will own about N N of edisto current acquisition preferred holders will own N N and current stockholders of edisto will own about N N about the same stake as edisto owns now in nrm + edisto currently is the general partner of nrm + as the largest holder of acquisition preferred units mesa limited partnership would own about N N of edisto after the transaction + as part of the transaction edisto agreed to give mesa an <unk> texas oil and gas partnership managed by t. boone pickens jr. a seat on its board + nrm said its $ N senior cumulative convertible preferred units will be converted into an equal number of shares of $ N senior cumulative convertible preferred stock of edisto + the transaction is subject to approval of nrm <unk> of record on oct. N among other conditions + nrm said it expects <unk> to vote on the restructuring at a meeting dec. N + <unk> co. and <unk> corp. said they 've discontinued talks toward a definitive agreement regarding <unk> ' acquisition of <unk> 's chemical <unk> group + the companies reached an agreement in principle for the sale in august + terms were n't disclosed + <unk> <unk> produces <unk> and coatings while the los angeles-based <unk> coatings group produces industrial coatings + <unk> corp. agreed to sell its headquarters building here to manufacturers life insurance co. of toronto and will lease the <unk> facility until it moves to a new quarters in N + the <unk> concern did n't disclose terms of the sale which will close in the first quarter of next year + proceeds from the planned sale of the <unk> building will help reduce the debt incurred as a result of our july N recapitalization said a <unk> official + the recently revived enthusiasm among small investors for stock mutual funds has been <unk> by a jittery stock market and the <unk> over program trading + after hitting two-year highs this summer net sales of stock funds slowed in september according to the investment company institute a trade group + the sales recovery <unk> to a halt this month some analysts say + confidence was starting to come back because we did n't have wildly volatile days says tyler <unk> research director for <unk> <unk> <unk> & co. a boston research firm + now everything such as program trading and wide stock market swings that everyone had pushed back in their <unk> is just sitting right there + net sales of stock funds in september totaled $ N million down from $ N billion in august the institute said + but if reinvested dividends are excluded investors put in only $ N million more than they pulled out for the month + october 's numbers which wo n't be released for a month are down further mutual fund executives say + investors in stock funds did n't panic the weekend after mid-october 's 190-point market plunge + most of the those who left stock funds simply switched into money market funds + and some fund groups said investors actually became net buyers + but the stock market swings have continued + the recent outcry over program trading will cast a pall over the <unk> environment in the coming months some analysts say + the public is very close to having had it mr. <unk> says + investors pulled back from bond funds in september too + net sales of bond funds for the month totaled $ N billion down two-thirds from $ N billion in august + the major reason heavy outflows from high-risk high-yield junk bond funds + big withdrawals from the junk funds have continued this month + overall net sales of all mutual funds excluding money market funds fell to $ N billion in september from $ N billion in august the trade group said + small net inflows into stock and bond funds were offset by slight declines in the value of mutual fund stock and bond portfolios stemming from falling prices said jacob <unk> the institute 's chief economist + many small investors went for the safety of money market funds + assets of these and other short-term funds surged more than $ N billion in september the institute said + analysts say additional investors transferred their assets into money funds this month + at fidelity investments the nation 's largest fund group money funds continue to draw the most business says michael <unk> vice president marketing + in october net sales of stock funds at fidelity dropped sharply mr. <unk> said + but he emphasized that new accounts new sales inquiries and subsequent sales of stock funds are all up this month from september 's level + investor interest in stock funds has n't stalled at all mr. <unk> maintains + he notes that most of the net sales drop stemmed from a <unk> period following the friday the 13th plunge + if that follows through next month then it will be a different story he says + but mr. <unk> adds sales based on a few days ' events do n't tell you much about october 's trends + one trend that continues is growth in the money invested in funds + buoyed by the continued inflows into money funds assets of all mutual funds swelled to a record $ N billion in september up fractionally from $ N billion in august + <unk> managers meantime went into october with less cash on hand than they held earlier this year + these managers held N N of assets in cash at the end of september down from N N in august and N N in september N + large cash positions help buffer funds from market declines but can cut down on gains in rising markets + managers of junk funds were <unk> their cash <unk> after the september cash crunch at campeau corp + <unk> managers raised their cash position to N N of assets in september from N N in august + in september N that level was N N + investors in all funds will seek safety in the coming months some analysts say + among stock funds the conservative <unk> portfolios probably will remain popular fund specialists say + there will be a <unk> and possibly greater focus on conservative equity funds at the expense of growth and aggressive growth funds says <unk> <unk> an analyst at strategic insight a new york <unk> concern + secretary of state baker we read decided to kill a speech that robert gates deputy national security adviser and a career soviet expert was going to give to a student <unk> the national <unk> security conference + we keep wondering what mr. gates wanted to say + perhaps he might have cited mr. gorbachev 's need for a stable currency free and competitive markets private property and real prices and other <unk> reforms + perhaps he 'd have called for a <unk> political and economic system without a dominant communist party + or political arrangements to alleviate the <unk> and demands of soviet ethnic minorities and republics + why a bob gates might even have said nor are soviet problems susceptible to rescue from abroad through abundant western credits + if mr. gates had been allowed to say these things we would now be hearing about <unk> and disarray on foreign policy + dark hints would be raised that parts of the administration hope mr. gorbachev would fail just as they were when vice president quayle voiced similar <unk> + it 's somehow ok for secretary baker himself however to say all the same things + in fact he did the quotes above are from mr. baker 's speech of two weeks ago + so far as we can see there is no disagreement among mr. baker mr. quayle the mr. gates we 've read or for that matter president bush + they all understand point one nothing the u.s. can do will make much difference in whether mr. gorbachev succeeds with perestroika + perhaps mr. gates would <unk> more than mr. baker the many hurdles the soviet leader must leap if he is going to succeed + but everyone agrees that mr. gorbachev 's problems result from the failure of his own system + they can be relieved only by changing that system not by pouring western money into it + gatt membership will not matter to <unk> coal miners short of soap nor will a start treaty make any difference to <unk> <unk> + on the other hand so long as mr. gorbachev is easing his grip on his empire everyone we 've heard agrees that the u.s. can benefit by engaging him + if a deal can be made to cut the world 's <unk> loose from moscow why not + we do n't expect much good from <unk> control but <unk> talks might <unk> eastern europe + there 's nothing in the least <unk> in all this and it would be nice to think that washington could <unk> a reasonably sophisticated complex view + yet much of the political culture seems intent on <unk> the bush administration for not helping mr. gorbachev + so every time a bush official raises a doubt about mr. gorbachev the washington community <unk> cold war and <unk> and an administration spokesman is quickly <unk> out to <unk> mr. bush wants perestroika to succeed + mr. baker seems especially sensitive to the washington <unk> known as <unk> + its symptoms include a cold sweat at the sound of debate <unk> hands in the face of congressional criticism and <unk> <unk> when someone writes the word controversy + as one unidentified official clearly in the late stages of the disease told the times baker just felt that there were some lines in the speech that could be <unk> and seized by the press + in short the problem is not <unk> disagreement but <unk> with the prospect that <unk> might fail and its political opponents will ask who lost gorbachev + mr. baker may want to avoid criticism from senate majority leader george mitchell but as secretary of state his audience is the entire free world not just congress + in any case he 's likely to find that the more he <unk> his colleagues the more leaks will pop up all around washington a lesson once learned by henry <unk> + letting officials express their own <unk> can be educational + we note that in rome yesterday defense secretary cheney said that european euphoria over mr. gorbachev is starting to be <unk> by a recognition of the magnitude of the problems he was trying to deal with + it is in the western interest to see mr. gorbachev succeed + the odds are against him as he himself would no doubt tell you + the ultimate outcome depends on what he does not on what we do + even if the press is ready to seize and <unk> these are not very complicated thoughts + surely there is someone in the administration maybe bob gates who could explain them to college students or even <unk> + <unk> e. jordan was elected to the board of this transportation services concern + mr. jordan has served as executive director of the united <unk> college fund director of the voter education project of the southern regional council and <unk> to the u.s. office of economic opportunity + his election increases ryder 's board to N members + the american stock exchange said a seat was sold for $ N down $ N from the previous sale last friday + seats are currently quoted at $ N bid and $ N asked + two <unk> entered a maryland restaurant ordered two employees to lie on the floor and shot them in the backs of their heads + the <unk> fled with less than $ N + describing this and other <unk> killings sen. <unk> thurmond r. s.c recently urged fellow lawmakers to revive a broad federal death penalty + the ultimate punishment he declared will protect the <unk> from the vicious <unk> individuals who commit these crimes + there 's just one problem the law that sen. thurmond is pushing would be irrelevant in the case of the maryland restaurant <unk> and almost all other killings + most <unk> are state crimes so any federal <unk> law probably would turn out to be more <unk> than substance + yet the bill is riding high on the furor over drug trafficking + senate republicans after repeatedly failing to <unk> <unk> amendments to unrelated legislation have finally gotten a <unk> <unk> bill through committee + the democratic leadership agreed to allow a floor vote on the issue before the end of the year a debate certain to focus on the alleged racial <unk> of death sentencing + even some democrats concede that there is probably a majority in the senate that favors some kind of broad <unk> measure + the pending bill introduced by mr. thurmond would revive the <unk> federal <unk> laws by <unk> legal procedures required by the supreme court + in N the high court <unk> aside all <unk> laws federal and state alike as unconstitutional + but in N the court permitted <unk> of such laws if they meet certain procedural requirements + for instance <unk> would have to consider specific <unk> and <unk> factors before deciding whether to condemn someone to death + since that N ruling N states have <unk> the death penalty + but congressional democrats have blocked the same from <unk> at the federal level with the exception of a N law allowing capital punishment for certain drug-related <unk> + the thurmond bill would establish a federally <unk> death sentence for N crimes most of which were formerly punishable by death under federal statutes that the supreme court <unk> + among these crimes are murder on federal land presidential assassination and <unk> + the thurmond bill would also add five new crimes punishable by death including murder for hire + separately the senate last week passed a bill permitting execution of <unk> who kill americans abroad + amid the <unk> of punitive rhetoric surrounding the issue one critical question involves whether a federal death penalty on top of existing state laws would deter any would-be criminals + for one thing it 's unlikely that many people would receive federal death sentences let alone be executed + most of the crimes incorporated in the thurmond bill are <unk> rare killing a supreme court justice for instance or deliberately causing a train <unk> that results in a death + in fact only N defendants would have been eligible for federal death sentences if the thurmond bill had been in effect in the past three years according to a study by the senate judiciary committee 's democratic staff + the last federal execution before the supreme court 's N ruling banning the death penalty took place in N meaning that the federal government did n't exercise its execution authority for eight years + in that sense the whole debate is sort of a fraud argues a democratic senate staff member + it 's <unk> attention from serious issues like how to make <unk> fbi and customs work together on drug enforcement + republicans acknowledge that few people would be executed under the thurmond bill but they contend that is n't the point + many scholars are of the opinion that the mere existence of the penalty <unk> many people from the commission of capital crimes says sen. <unk> hatch r. utah + executions regardless of how frequently they occur are also proper <unk> for <unk> crimes mr. hatch argues + thomas boyd a senior justice department official says the new federal drug-related crimes punishable by death since last november may result in a jump in capital sentences though that has n't happened so far + in addition to <unk> the old issue of whether death sentences deter criminals this bill has made race a major part of the <unk> debate + before the bill left committee sen. edward kennedy d. mass attached an amendment that would allow a defendant to escape from a death sentence in <unk> shown to have <unk> out executions in a <unk> manner + the amendment prompted an ironic protest from mr. thurmond who complained that it would kill capital punishment + a large number of studies suggest that state judges and <unk> have imposed the penalty in a <unk> <unk> fashion + and the kennedy amendment would <unk> not only federal but state <unk> in two important ways + it would allow all defendants to introduce statistical evidence showing <unk> disproportionate application of the death penalty in the past + and it would shift the burden to prosecutors to <unk> that discrimination caused any statistical racial <unk> + that burden is very difficult if not impossible to meet says mr. boyd + how do you prove a negative + since most prosecutors would n't be able to demonstrate <unk> that racial considerations did n't affect sentencing executions everywhere might come to a halt mr. boyd explains + at least N major studies <unk> to show that particular states have imposed the death penalty <unk> against <unk> of whites compared with blacks and against black defendants compared with white defendants + conservatives question the <unk> of the studies and note that the supreme court ruled in N that such research regardless of its <unk> is n't relevant to a constitutional attack on a particular death sentence + the kennedy amendment would in effect <unk> around the supreme court ruling + lawyers would <unk> seize on the provision in their <unk> appeals says richard <unk> director of the <unk> legal defense and educational fund 's <unk> defense team + mr. kennedy failed to get his amendment incorporated into last year 's anti-drug legislation and it will be severely attacked on the senate floor this time around + but if it <unk> it could prompt other statutory changes according to the mr. <unk> + it might force congress and the states to narrow the death penalty only to convictions shown to be relatively free of racial <unk> <unk> by repeat offenders who <unk> their victims perhaps + narrowing the penalty in this fashion would clearly reduce whatever <unk> effect it now has + and that in turn would only strengthen the argument of those who oppose execution under any circumstances + a state judge postponed a decision on a move by holders of telerate inc. to block the tender offer of dow jones & co. for the N N of telerate it does n't already own + vice chancellor maurice a. <unk> iii of delaware 's court of chancery heard arguments for more than two hours here but he made no comment and asked no questions + he could rule as early as today on the motion seeking a temporary injunction against the dow jones offer + dow jones has offered to pay $ N a share or about $ N million for the remaining telerate stake + the offer will expire at N p.m. est on nov. N unless extended again + robert <unk> an attorney for the telerate holders told judge <unk> the dow jones offer is arrogant and hostile + he accused dow jones of using unfair means to obtain the stock at an unfair price + michael <unk> an attorney for dow jones defended the offer as adequate based on what the company considers realistic projections of telerate 's revenue growth in the range of N N + he also contended that the plaintiffs failed to cite any legal authority that would justify such an injunction + telerate provides information about financial markets through an electronic network + dow jones publishes the wall street journal barron 's magazine other <unk> and community newspapers and operates electronic business information services + japan 's exports of cars trucks and buses declined N N to N units in september from a year earlier the japan automobile manufacturers association said + the association attributed the drop to a trend among auto makers to move manufacturing operations overseas + with the exception of august when exports rose N N exports have declined every month from year-earlier levels since march + lone star technologies inc. said its lone star steel co. unit sued it in federal court here seeking to recover an <unk> <unk> valued at a minimum of $ N million + the lawsuit was filed by lone star steel 's unsecured creditors ' committee on behalf of lone star steel which has been operating under chapter N of the federal bankruptcy code since june N + lone star technologies said it and its subsidiary 's creditors agree that the parent company owes the unit money but they have n't been able to reach agreement on the amount + <unk> <unk> lawyer for the creditors said the creditors group is challenging certain accounting <unk> on the parent company 's books and estimates that the <unk> owed the steel company could be as much as $ N million + the lone star steel lawsuit also asks the court to rule that lone star technologies is jointly responsible for a $ N million lone star steel pension payment that was due but was n't paid in september and that the parent company ca n't recover the amount from its subsidiary if the parent company makes the payment + separately lone star technologies said the bankruptcy court granted lone star steel an extension until year end on its exclusive period to present a reorganization plan + the <unk> exclusivity period was to expire yesterday + under chapter N a company continues to operate but is protected from creditor lawsuits while it tries to work out a plan to pay its debt + nothing was going to hold up the <unk> settlement of <unk> vs. <unk> + not even an earthquake + on the afternoon of oct. N after hours of <unk> with five <unk> adjusters over settling a <unk> suit four lawyers had an agreement in hand + but as judge thomas m. <unk> <unk> his <unk> so he could give final approval the major earthquake struck its epicenter not far from his courtroom in <unk> city calif + the walls shook the building rocked + for a while it looked like the deal not to mention the courtroom itself was on the verge of collapse + the judge came out and said quick let 's put this on the record says <unk> <unk> the judge 's court reporter + i said now + i was shaking the whole time + a <unk> water <unk> had <unk> onto the floor <unk> the red carpeting + lights <unk> on and off <unk> dropped from the ceiling the walls still shook and an evacuation alarm <unk> outside + the four lawyers climbed out from under a table + let 's close the door said the judge as he climbed to his bench + at stake was an $ N settlement involving who should pay what share of cleanup costs at the site of a former gas station where underground fuel tanks had <unk> and <unk> the soil + and the lawyers were just as eager as the judge to wrap it up + we were never going to get these insurance companies to agree again says john v. trump a san francisco defense lawyer in the case + indeed the insurance adjusters had already <unk> out of the courtroom + the lawyers went to work anyway <unk> noting that the proceeding was taking place during a major earthquake + ten minutes later it was done + for the record jeffrey <unk> an attorney for fireman 's fund said he was rattled both literally and <unk> + my belief is always if you 've got a settlement you read it into the record says judge <unk> now known in his courthouse as shake <unk> down <unk> + the insurance adjusters think differently + i did n't know if it was world war iii or what says <unk> <unk> of morristown n.j + reading the settlement into the record was the last thing on my mind + edison brothers stores inc. said it agreed to buy N <unk> women 's apparel stores from <unk> specialty stores corp. a unit of <unk> ltd. of toronto + terms were n't disclosed + edison said the acquired stores would be integrated into its current operations + brown-forman corp louisville ky. + david r. jackson formerly vice president managing director of corporate communications for maxwell communication inc. was named vice president and assistant to the chairman of this maker of <unk> <unk> and consumer products + your oct. N front page noted that british lawyers have to wear <unk> in court and that these <unk> are made from horses ' <unk> + do you think the british know something that we do n't + yale jay <unk> + <unk> md + applause for sometimes talk is the best medicine in your oct. N marketplace section + indeed the art of <unk> does contribute to better health results and <unk> unwarranted <unk> litigation + <unk> on the concern about doctors ' <unk> earnings in order to spend talk time with patients we are finding the quality of the time spent is the key to true <unk> + even brief conversations can show <unk> and trust and need not restrict the efficiency of the communication or restrain the doctor 's earnings + the issue is far-reaching + right now the american <unk> is spending about N N of our gross national product on health care + that amounts to more than $ N billion a year + and it is estimated that more than N N of that $ N billion goes to defensive medicine those measures taken by doctors to protect themselves from the most unlikely possibilities + so we all stand to benefit if <unk> relations become a partnership + president north american physicians insurance risk <unk> group + chrysler corp. chairman lee a. <unk> said the nation 's no. N auto maker will need to close one or two of its assembly plants because of the slowdown hitting the industry + in an interview with the trade journal automotive news mr. <unk> declined to say which plants will close or when chrysler will make the moves + but he said we have too many plants in our system + so the older or most inefficient capacity has got to go + according to industry analysts chrysler plants most likely to close are the st. louis no. N facility which builds chrysler <unk> and dodge <unk> models the toledo ohio jeep plant which dates back to the early <unk> and two canadian plants that build the jeep <unk> and chrysler 's <unk> vans + chrysler has had to temporarily close the st. louis and toledo plants recently because of excess inventories of vehicles built there + at chrysler 's N model <unk> last month chrysler motors president robert a. <unk> said the no. N auto maker along with other u.s. manufacturers might be forced to <unk> capacity if market demand does n't improve + but mr. <unk> 's remarks are the most specific indication to date of how many plants could be in jeopardy + general motors corp. has signaled that as many as five of its u.s. and canadian plants may not survive the mid-1990s as it struggles to trim its excess <unk> capacity + the overcapacity problem has <unk> in recent years with foreign auto makers beginning car and truck production in the u.s. + with companies such as honda motor co. toyota motor corp. and nissan motor co. running so-called transplant auto operations japanese auto production in the u.s. will reach one million vehicles this year + unless the market goes to N million units which we all know it 's not going to do we have the <unk> fact that the transplants are adding capacity mr. <unk> said last month + the <unk> plants eventually will have the capacity to build some N million vehicles in the u.s. and that will translate into market share that is going to have to come out of somebody he added + already chrysler has closed the <unk> wis. plant it acquired when it bought american motors corp. in N + chrysler has also launched a $ N billion cost-cutting program that will cut about N white-collar workers from the payroll in the next few months + revco <unk> inc. the <unk> chain that filed for bankruptcy-court protection last year received a $ N million offer from a group led by texas billionaire robert bass + revco reacted cautiously saying the plan would add $ N million of new debt to the highly leveraged company + it was revco 's huge debt from its $ N billion leveraged buy-out in N that forced it to seek protection under chapter N of the federal bankruptcy code + revco insists that the proposal is simply an expression of interest because under chapter N revco has exclusivity rights until feb. N + those rights prevent anyone other than revco from proposing a reorganization plan + also under chapter N a reorganization plan is subject to approval by bondholders banks and other creditors + a financial adviser for revco bondholders david <unk> of <unk> partners had mixed reactions to the offer + he said he feared a revco reorganization might force bondholders to accept a cheap deal and that the bass group 's offer would give them more money + however the group is offering to pay off bondholders in cash only $ N million and no equity + the revco bonds are high-yield high-risk junk bonds holders have $ N million in claims against revco mr. <unk> said + revco received the offer oct. N but issued a response yesterday only after a copy of the proposal was made public by bondholders + acadia partners limited partnership a fort worth texas partnership that includes the robert m. bass group made the proposal + mr. bass is based in fort worth + analysts said the nation 's second-largest <unk> chain was a valuable company despite its financial woes + its problem they say is that management paid too much in the leveraged buy-out and the current $ N million debt load is keeping revco in the red + if bought at the right price it could still be profitable said jeffrey stein an analyst at mcdonald & co. cleveland + in addition revco 's N stores in N states represent a lot of real estate he said and <unk> are helping <unk> the nation 's aging population will boost demand for prescription drugs + last week revco 's parent company <unk> holding corp. said the company reported a loss of $ N million for the fiscal first quarter compared with a loss of $ N million in the year-earlier quarter + sales were $ N million up N N from the previous year + the company based in <unk> ohio said its operating profit before depreciation and amortization increased N N to $ N million from $ N million + acadia partners and the bass group declined to comment + the partnership also includes american express co. equitable life assurance society of the u.s. and shearson lehman hutton inc + the offer consists of $ N million in cash and the rest in notes + acadia would sell up to N N of the equity in the <unk> company to creditors and bondholders in exchange for the cash distribution but creditors and bondholders would receive no discount for their shares + revco 's chairman and chief executive officer <unk> a. sells said both the company and the bondholders have put forth reorganization plans but little progress has been made since negotiations began this summer + he said he has not met with representatives from acadia + any reorganization proposal mr. sells said is difficult to assess because it must be agreed upon by the company bondholders banks and other creditors + revco has $ N billion in claims outstanding + it 's not like the board can decide by itself mr. sells said adding we 're <unk> to the bass plan + we just want a plan that <unk> creditors and at the end leaves a healthy revco + but mr. <unk> the bondholders ' adviser said revco was dragging its feet in responding to the proposal + they want to <unk> it does n't exist he said + mr. <unk> who met with acadia representatives on oct. N said it 's certainly a responsible offer + it 's not an effort to steal the company in the middle of the night + copper futures prices failed to extend friday 's rally + declines came because of concern that demand for copper may slow down + the december contract was down three cents a pound settling at $ N which was just above the day 's low of $ N + futures prices fell during three of five sessions last week and the losses <unk> and <unk> were greater than the advances + two of the major factors <unk> prices the prolonged strikes at the highland valley mine in canada and the cananea mine in mexico were finally resolved + also the premiums paid by the u.s. government on a purchase of copper for the u.s. mint were lower than expected and acted as a price <unk> analysts said + the mint purchases were at premiums about N N cents a pound above the respective prices for the copper + at the time merchants were asking for premiums of about five cents a pound + all this has led to prolonged selling in futures mostly on the part of computer-guided funds + prices fell through levels regarded as important support areas which added to the selling + the reluctance of traders to buy contracts indicates that they have begun focusing on demand rather than supply + at least one analyst noted that as production improves the concern among traders is whether the prospective increased supply will find buyers because of uncertainty over national economies + demand from japan is expected to continue strong but not from other areas of the world into the first quarter of next year he said + japan normally depends heavily on the highland valley and cananea mines as well as the bougainville mine in <unk> new guinea + recently japan has been buying copper elsewhere + but as highland valley and cananea begin operating they are expected to resume their roles as japan 's suppliers + according to fred demler metals economist for drexel burnham lambert new york highland valley has already started operating and cananea is expected to do so soon + the bougainville mine is generally expected to remain closed until at least the end of the year + it has n't been operating since may N because of attacks by native <unk> + a recent attempt to resume operations was cut short quickly by these attacks + however traders <unk> a potential production disruption in chile and a continued drop in inventories + workers at two <unk> mines los <unk> and el <unk> which belong to the <unk> <unk> <unk> group will vote thursday on whether to strike after a two-year labor pact ends today + the mines produced a total of N tons of copper in N + according to drexel 's mr. demler the potential strike is expected to be resolved quickly which may be one reason why the situation did n't affect prices much + another analyst said that if there was any concern it was that a strike could encourage other <unk> in chile + london metal exchange copper inventories fell N tons last week to N tons a <unk> decline + but that development also had little effect on traders ' sentiment + mr. demler said that stocks of copper in u.s. producers ' hands at the end of september were down N metric tons from august to N tons + outside the u.s. he said producer stocks at the end of august were N tons down N tons from the end of july + consumer stocks of copper in the u.s. fell to N tons at the end of september from N tons a month earlier and stocks of copper held by consumers and merchants outside of the u.s. at the end of july stood at N tons down from N tons in june + the high point of foreigners ' copper stocks this year was N tons at the end of april according to mr. demler + in other commodity markets yesterday + grains and soybeans + the prices of most corn soybean and wheat futures contracts dropped slightly as farmers in the midwest continued to rebuild <unk> that were <unk> by the N drought + buying by the soviets has helped to <unk> up corn prices in recent weeks but a lack of any new purchases kept prices in the doldrums + coffee + futures prices rose slightly in a market filled with rumors that a new international coffee agreement might still be achieved + the december contract ended with a gain of N cents a pound at N cents + according to one analyst prices opened higher because of reports over the weekend that brazil and colombia at the <unk> summit meeting in costa rica had agreed to a reduction in their coffee export quotas for the <unk> of creating a new agreement + the reports attributed to the colombian minister of economic development said brazil would give up N bags of its quota and colombia N bags the analyst said + these reports were later denied by a high brazilian official who said brazil was n't involved in any coffee discussions on quotas the analyst said + the colombian minister was said to have referred to a letter that he said president bush sent to colombian president <unk> <unk> and in which president bush said it was possible to overcome obstacles to a new agreement + the minister was also quoted as saying that a new pact could be achieved during the first half of next year according to the analyst + precious metals + futures prices showed modest changes in light trading volume + december delivery gold eased N cents an ounce to $ N + december silver was off N cents an ounce at $ N + january platinum rose N cents an ounce at $ N + the market turned quiet after rising sharply late last week according to one analyst + last week 's uncertainty in the stock market and a weaker dollar triggered a flight to safety he said but yesterday the market lacked such <unk> + there was some profit-taking because prices for all the precious metals had risen to levels at which there was resistance to further advance he said + the dollar was also slightly firmer and prompted some selling as well according to the analyst + <unk> corp. said its board authorized the purchase of as many as five million of its common shares for employee stock plans and other general corporate purposes + the forest-products concern currently has about N million shares outstanding + in yesterday 's composite trading on the new york stock exchange <unk> shares closed at $ N down N cents + when the supreme soviet passed laws on workers ' rights in may N and on <unk> cooperatives a year later some western observers assumed mikhail gorbachev had launched the soviet union on a course that would lead inevitably to the creation of a market economy + their only doubt concerned the possibility that mr. gorbachev might not survive the opposition that his reforms would <unk> and that the whole process might be reversed + if mr. gorbachev 's goal is the creation of a free market he and these western observers have good reason to fear for his future as economic <unk> within communist <unk> leads <unk> to demands for fundamental political reform accompanied by civil unrest + these fears were clearly apparent when last week secretary of state james baker blocked a speech by robert gates deputy national security adviser and soviet expert on the ground that it was too pessimistic about the chances of mr. gorbachev 's economic reforms succeeding + yet the soviet leader 's <unk> to <unk> on foreign visits and steady accumulation of personal power particularly since the last politburo <unk> on sept. N do not suggest that mr. gorbachev is on the verge of being <unk> nor does he look likely to reverse the powers of perestroika + indeed the soviet miners strike this summer clearly demonstrated that mr. gorbachev must proceed with economic reform + but is he so <unk> that he has achieved the political equivalent of making water run <unk> + and has he truly persuaded the communist party to accept economic change of a kind that will sooner or later lead to its demise + an alternative and more convincing explanation confirmed by recent events and a close inspection of the gorbachev program is that the new soviet economic and social structures are intended to conform to a model other than that of the market + for example while the laws on individual labor activity allow a citizen to earn a living independent of the state strict provisions are attached on how far this may lead to the development of a free market + before becoming self-employed or setting up a cooperative workers must seek permission from the local soviet council + permission is far from automatic the soviets have the legal right to turn down applications and impose conditions and they appear to be exercising these powers + private <unk> for example is allowed in N soviet republics but banned by five <unk> is allowed in seven but illegal in nine + the controls on cooperatives appeared relatively liberal when first introduced + but that changed following a resolution from the supreme soviet banning cooperatives from operating in some areas of the economy and permitting activity in others only if the cooperatives are under contract to the state + all independent media activity is now illegal which perhaps is not surprising but so is the manufacture of <unk> cosmetics household chemicals and sand <unk> + medical cooperatives among the most successful in the u.s.s.r. are banned from providing <unk> services their main source of income carrying out surgery and treating cancer patients drug <unk> and pregnant women + earlier this month the supreme soviet adopted two more resolutions restricting the freedom of cooperatives the first enables the soviets to set prices for which goods may be sold the second bans cooperatives from buying industrial and food goods from the state or other cooperatives + if mr. gorbachev is looking toward <unk> the productive forces of the market these latest resolutions are nothing short of reckless + along with some other <unk> indicators these developments suggest that while mr. gorbachev wishes to move away from some rigid central controls he is <unk> on creating economic structures of a kind that would <unk> find favor with the <unk> or chicago schools of economic thought + mr. gorbachev has ruled out the use of the market to solve the problem of insufficient consumer goods + he told the congress of people 's deputies on may N we do not share this approach since it would immediately destroy the social situation and disrupt all the processes in the country + having rejected central economic planning for economic reasons and the market for fear of the social political consequences mr. gorbachev seeks a third way that would combine the discipline and controls of the former with the economic benefits of the latter + most important this would leave the party intact and its monopoly of political power largely <unk> + indeed mr. gorbachev 's proposals display a close conceptual <unk> to the <unk> of italian <unk> whose architects spoke specifically of a third way of having produced a historic <unk> of socialism and capitalism + they too promised to combine economic efficiency with order and discipline + the emergence of russian <unk> had been anticipated in journalist george urban 's introduction to a series of <unk> can the soviet system survive reform published this spring + communism will reach its final stage of development in a <unk> <unk> <unk> in form <unk> in content and <unk> in style that will <unk> the world with <unk> <unk> of <unk> and <unk> + the <unk> concept of <unk> <unk> an organic society in which citizens were <unk> and morally unified and prepared to sacrifice themselves for the nation + this unification was to be brought about through policies and institutions that would <unk> workers and employers with government in a fully integrated and <unk> society + the key to the creation of the organic state lay in the formation of natural groups that would <unk> the role of <unk> + by contrast a parliamentary system based on <unk> political rights and groups was held to cause rather than resolve conflict + the <unk> of soviet perestroika to the <unk> social blueprint of <unk> was evident when mr. gorbachev presented his economic vision to the soviet congress + in doing so he neither rejected a socialist planned economy nor embraced the free market + instead he proposed a <unk> economy in which there would be a <unk> division between state direction of the economy and economic management + the latter would be undertaken by enterprises joint stock companies and cooperatives + these would not function <unk> but would act together to form combines unions and associations to tackle problems and coordinate their activities + mr. gorbachev is in a much stronger position to pursue the <unk> ideal than was <unk> who was never able to influence business giants such as <unk> and fiat + the soviet communist party has the power to shape corporate development and <unk> it into a body dependent upon it + to ensure the loyalty of the business sector mr. gorbachev may offer concessions and powers that will allow the business community to preserve its own interests probably by restricting competition + however mr. gorbachev must ensure that within this alliance the business sector remains subordinate to the party + at the same time he must give it sufficient freedom to provide the economic benefits so desperately needed + it is the promise of economic returns that is supposed to make the <unk> model attractive to both the party and labor + the work force provides the third arm of the alliance + within the alliance it is supposed to act as a <unk> force <unk> against excessive control by government or abuse of its economic position by business for either could result in a deterioration of its living standards under the new resolutions workers <unk> may demand that a cooperative be closed or its prices be reduced + by providing workers with the opportunity to move into the private sector where wages tend to be higher and by holding out the promise of more consumer goods mr. gorbachev hopes to revive the popularity of the party + at the same time the strategy requires that he deal effectively with those who seek genuine western-style political <unk> + the most important development in mr. gorbachev 's policy for <unk> the opposition movement is the claim that the u.s.s.r. also <unk> from terrorism + an increasing number of <unk> by the soviet press to opposition groups now active in the u.s.s.r. particularly the democratic union <unk> that they show <unk> <unk> and claim that they would be prepared to kill in order to achieve their aims + it is possible that in <unk> such <unk> the ground is being laid for the arrest of opposition activists on the ground of terrorism + mr. gorbachev would appear to see his central task however as that of ensuring that foundations of an alliance among labor capital and the state are properly laid before the demands for a <unk> system reach a <unk> + if he were able to construct a popular and efficient <unk> system he or his heir would be <unk> to rein in political opposition and to <unk> control in eastern europe + the weaknesses in his plan do not lie in the political calculations mr. gorbachev is a <unk> political leader perhaps one of the greatest but in its economic prescription + contrary to widespread belief <unk> failed to live up to his promise to make the trains run on time it is doubtful whether <unk> <unk> will make soviet trains run on time or fill the shops with goods that the consumers so desperately <unk> + miss brady is deputy director of the russian research foundation in london + new construction contracting climbed N N in september to an annualized $ N billion with commercial industrial and <unk> contracts providing most of the increase according to <unk> dodge group + through the first nine months of the year the <unk> total of all new construction was $ N billion flat compared with a year earlier + the south was off N N after the first nine months while the north central region was up N N + the northeast and west regions were unchanged + a small decline in total construction for the entire year is possible if contracting for housing does n't increase in response to this year 's lower mortgage rates said george a. christie vice president and chief economist of dodge the forecasting division of publisher mcgraw-hill inc + the seasonally adjusted dodge index reached N in september its highest level this year from N in august + the index uses a base of N in N + newly contracted residential work edged up N N in september to an annualized $ N billion largely because <unk> building rebounded from a very weak august + at the end of the third quarter there was still no evidence of renewed home building in response to the midyear decline of mortgage rates mr. christie said + housing has been weak all year and especially so in the past five months + contracting for <unk> buildings rose N N in september to an annualized $ N billion + commercial and industrial construction rose sharply partly because of three large projects each expected to cost more than $ N million + institutional building such as hospitals and schools eased in september following a surge in august + although the third quarter was the best so far this year for <unk> building weakness early in the year held the nine-month total to $ N billion up just N N from a year earlier + <unk> and utility projects also known as <unk> contracting grew N N to $ N billion in september but the nine-month total of $ N billion was down N N from a year earlier + the sept. N end of the federal fiscal year may have <unk> contractors to get any <unk> road and bridge construction under way before the <unk> ran out mr. christie said referring to threatened N N across-the-board budget cuts + a monthly construction contract values are reported on an annualized seasonally adjusted basis + moody 's investors service inc. said it lowered ratings on long-term debt of cs first boston inc. the holding company of wall street giant first boston corp. because of first boston 's aggressive merchant banking risk in highly leveraged takeovers + in downgrading cs first boston 's subordinated domestic <unk> and swiss debt to single-a-3 from single-a-2 moody 's is matching a move made by the other major credit rating concern standard & poor 's corp. several months ago + moody 's also confirmed the <unk> rating its highest on cs first boston 's commercial paper or short-term corporate <unk> + in addition moody 's said it downgraded financiere credit <unk> boston 's senior and subordinated swiss debt to single-a-2 from single-a-1 and lowered financiere <unk> n.v. 's junior subordinated perpetual <unk> guaranteed by financiere credit suisse first boston to single-a-3 from single-a-2 + about $ N million of long-term debt is affected according to moody 's + a spokesman for cs first boston said we remain committed to a full range of businesses including merchant banking + we think that the ratings revision is unfortunate but not unexpected + our commitment to manage these businesses profitably will continue + first boston 's merchant banking risks mounted last month as highly leveraged campeau corp. first boston 's most lucrative client of the decade was hit by a cash squeeze and the high-risk junk bond market tumbled + first boston incurred millions of dollars of losses on campeau securities it owned as well as on special securities it could n't sell + first boston financings for several other highly leveraged clients including ohio <unk> unraveled as the high-risk junk bond market plummeted + moody 's said its rating changes actions reflect cs first boston 's aggressive merchant banking risk as well as the risk profile of its current merchant banking exposures + it said cs first boston has consistently been one of the most aggressive firms in merchant banking and that a very significant portion of the firm 's profit in recent years has come from merchant <unk> business + moody 's believes that the uncertain environment for merchant banking could put pressure on cs first boston 's performance the rating concern said citing continued problems from the firm 's exposures to various <unk> firms and to ohio <unk> + these two exposures alone represent a very substantial portion of cs first boston 's equity moody 's said + total merchant banking exposures are in excess of the firm 's equity + quotron systems inc. plans to cut about N or N N of its N employees over the next several months + this action will continue to keep operating expenses in line with revenue said j. david <unk> president and chief executive officer of los angeles-based quotron + the move by the financial information and services subsidiary of citicorp is a response to changing conditions in the retail securities industry which has been contracting since october N 's stock market crash the executive added + quotron which citicorp purchased in N provides price quotations for securities particularly stocks + quotron also provides trading and other systems services for brokerage firms and <unk> services + independent <unk> of financial information including quotron have been under some pressure as the major securities houses try to regain their hold on the production of market data and on the related revenue + shearson goldman sachs & co. morgan stanley & co. and salomon inc. are discussing formation of a group to sell <unk> data + the job cuts to be made in a number of areas at various job levels are a streamlining of operations a spokeswoman said + the company has no immediate plans to close any operations she said but quotron may <unk> some work that it has been doing in-house including <unk> and production of quotron N equipment used in delivering financial data + the spokeswoman said the move is n't directly a response to quotron 's loss of its two biggest customers merrill lynch & co. and american express co. 's shearson lehman hutton inc. to automated data processing inc. earlier this year + the spokeswoman noted that last week kidder peabody & co. the securities subsidiary of general electric co. chose a quotron subsidiary to provide <unk> services + and oct. N quotron said it will market the automated trading system of broker-dealer <unk> government securities inc + quotron is n't profitable on citicorp 's books because of the interest charges the new york bank holding company incurred in buying the <unk> concern for $ N million says ronald i. <unk> analyst for sanford c. bernstein & co + but citicorp does view quotron as being crucial to the financial-services business in the 1990s the analyst added + this past summer quotron sold its <unk> unit <unk> N to phoenix technologies inc. a closely held <unk> firm in valley forge pa + terms were n't disclosed + the oakland athletics ' four-game sweep over the san francisco giants in the world series may widen <unk> losses that the abc network will incur on the current final year of its baseball contract + the N series disrupted by a devastating earthquake and diminished in national interest because both teams came from the san francisco bay area is likely to end up as the <unk> series of this decade and probably since the event has been broadcast + the first three games were seen by an average of only N N of u.s. homes a sharp decline from the N N rating for last year 's series + a final ratings tally from a.c. nielsen co. is due today + the sweep by the <unk> whose <unk> and <unk> <unk> dominated the <unk> giants will only make things worse for abc owned by capital cities\/abc inc + the network had been expected to have losses of as much as $ N million on baseball this year + it is n't clear how much those losses may widen because of the short series + had the contest gone a full seven games abc could have <unk> an extra $ N million in ad sales on the seventh game alone compared with the ad take it would have received for regular prime-time shows + abc had based its budget for baseball on a <unk> series + a network spokesman would n't comment and abc sports officials declined to be interviewed + but some industry executives said abc in anticipation of a four-game sweep limited its losses by <unk> up the number of commercials it aired in the third and fourth games + a world series <unk> typically carries N <unk> commercials but by the fourth game abc was <unk> in N to N ads to generate extra revenue + abc 's baseball experience may be of interest to cbs inc. which next season takes over the broadcasting of all baseball playoffs in a four-year television contract priced at $ N billion + cbs sports president neal pilson has conceded only that cbs will have a loss in the first year + but other industry executives contend the losses could reach $ N million over four years and could go even higher if the world series end in four-game <unk> + the series typically is among the <unk> sports events on television + last year 's series broadcast by general electric co. 's nbc was the <unk> series in four years instead of featuring a major east coast team against a west coast team it <unk> the los angeles <unk> against the losing oakland <unk> + abc 's hurdle was even higher this year with two teams from the same area + the series got off to a <unk> start oct. N with a N N rating the next night it drew N N of homes + then came the earthquake and a damaging delay of N days + some people had hoped abc 's ratings would go up because of the intense focus on the event in the aftermath of the earthquake + an analyst 's opinion to that effect even sent capital cities\/abc shares soaring two weeks ago + but interest instead decreased + the third game last friday night drew a disappointing N rating + bargain <unk> helped stock prices break a <unk> losing streak while bond prices and the dollar inched higher + the dow jones industrial average gained N points to N in light trading after losing more than N points last week + bond prices continued to edge higher in anticipation of more news showing a slower economy + although the dollar rose slightly against most major currencies the focus in currency markets was on the beleaguered british pound which gained slightly against the dollar + trading volume on the new york stock exchange <unk> to only N million shares yesterday as major brokerage firms continued to throw in the towel on program trading + kidder peabody became the most recent firm to <unk> off stock-index arbitrage trading for its own account and merrill lynch late yesterday took the major step of <unk> the trading strategy even for its clients + yet that did n't eliminate program trading from the market + the dow industrials shot up N points in the opening hour at least in part because of buy programs generated by stock-index arbitrage a form of program trading involving futures contracts + but interest <unk> as the day wore on and investors looked ahead to the release later this week of two important economic reports + the first is wednesday 's survey of purchasing managers considered a good indicator of how the nation 's manufacturing sector fared in october + the other is friday 's measure of october employment an indicator of the broader economy 's health + both are expected to show continued <unk> which would be good for bonds and bad for stocks + in major market activity stock prices rose in light trading + but declining issues on the new york stock exchange outnumbered gainers N to N and broader market indexes were virtually unchanged + bond prices <unk> higher + the treasury 's benchmark 30-year bond gained about an eighth of a point or about $ N for each $ N face amount + the yield on the issue slipped to N N + the dollar gained + in late new york trading the dollar was quoted at N marks and N yen compared with N marks and N yen friday + the british pound pressured by last week 's resignations of key thatcher administration officials nevertheless rose monday to $ N from friday 's $ N + if japanese companies are so efficient why does <unk> transportation co. sometimes need a week just to tell its clients how soon it can ship goods from here to osaka + why until last spring did the long-term credit bank of japan sometimes take several days to correct <unk> errors in its paper work for international transactions + because the companies have lacked office computers considered standard equipment in the u.s. and western europe japanese corporations ' reputation as <unk> <unk> is only half right + their factories may look like sets for a <unk> movie but their offices with rows of <unk> <unk> over <unk> and <unk> are more like scenes from a <unk> novel + now the personal-computer revolution is finally reaching japan + <unk> a freight company set up its own software subsidiary this year and is spending nearly a year 's profit to more than double the computer terminals at its main office + in april the long-term credit bank linked its computers in tokyo with its three american offices + overall pc sales in japan in the first half of N were N N higher than in the year-earlier period + combined pc and <unk> use in japan will jump as much as N N annually over the next five years according to some analysts compared with about N N in the u.s. + and with a labor shortage and intense competitive pressure to improve efficiency more and more japanese companies are concluding that they have no choice + we have too many people in our home offices says <unk> <unk> the president of the japan management association + productivity in japanese offices is relatively low + with japanese companies in a wide range of industries from heavy industry to securities firms increasing their market share world-wide the prospect of an even more efficient japanese economic army may <unk> foreigners + but it also offers opportunities americans are well poised to supply the weapons + japan may be a tough market for outsiders to <unk> and the u.s. is <unk> behind japan in certain technologies + but for now at least americans are far better at making pcs and the software that runs them + after years of talking about selling in japan more and more u.s. companies are seriously pouring in + apple computer inc. has doubled its staff here over the past year + lotus development corp. has slashed the lag between u.s. and japan product <unk> to six months from three years + <unk> inc. has a bigger share of the <unk> market in japan than at home + but the japanese have to go a long way to catch up + typical is one office of the ministry of international trade and industry 's machinery and information industries bureau the main bureaucracy overseeing the computer industry + personal computer <unk> are lined up on nearly every desk and <unk> copies of nikkei computer crowd magazine <unk> + but amid the two dozen bureaucrats and secretaries sits only one <unk> pc + while american pc sales have averaged roughly N N annual growth since N and west european sales a <unk> N N japanese sales were flat for most of that time + japanese office workers use pcs at half the rate of their european counterparts and one-third that of the americans + moreover japanese offices tend to use computers less efficiently than american offices do + in the u.s. pcs commonly perform many tasks and plug into a broad network + in japan many desktop terminals are limited to one function and ca n't <unk> with other machines + the market planning and sales promotion office of nomura securities co. for example has more than N computers for its N workers a respectable ratio + but the machines are n't on employees ' desks they ring the <unk> of the large office + some machines make charts for <unk> + others analyze the data + to transfer information from one to the other employees make <unk> and enter the data <unk> + to <unk> charts to branch offices they use a fax machine + meanwhile a woman sitting next to a new fujitsu terminal writes stock-market information on a chart with a pencil and adds it up with a hand <unk> + in an efficient <unk> the same pc could perform all those tasks + in the u.s. more than half the pc software sold is either for <unk> or for <unk> analysis according to lotus + in japan those functions account for only about a third of the software market + machines dedicated solely to word processing which have all but disappeared in the u.s. are still more common in japan than pcs + in the u.s. <unk> of the office pcs are <unk> up to some sort of network + in japan about N N are linked + computers here are used for data gathering says roger j. <unk> who manages the <unk> group in <unk> & co. 's tokyo office + some japanese operations such as <unk> rooms may be ahead of their american counterparts he says but basically there 's little analysis done on computers in japan + of course simply buying computers does n't always solve problems and many american companies have <unk> by purchasing technology they did n't understand + but healthy skepticism is only a small reason for japan 's pc lag + various cultural and economic forces have <unk> demand + because the japanese <unk> is so huge japan has no history of <unk> use and so <unk> <unk> especially among older workers remains a common <unk> + i have no experience before with such sophisticated machinery says <unk> <unk> a <unk> executive vice president of japan air lines explaining his reluctance before accepting a terminal in his office this summer + while most american employees have their own private space japanese <unk> usually share large common tables and rely heavily on old-fashioned personal contact + top japanese executives often make decisions based on consensus and personal relationships rather than complex financial projections and fancy <unk> + and japan 's management system makes it hard to impose a single integrated computer system <unk> + besides a computer processing the japanese language needs a huge memory and much processing capability while the screen and printer need far better definition to <unk> accurately the <unk> <unk> + until recently much of the necessary technology has been unavailable or at least <unk> + some analysts estimate the average pc costs about N N more in japan than the u.s. + but the complex language is n't the only reason + for the past decade nec corp. has owned more than half the japanese pc market and ruled it with <unk> power + with little competition the computer industry here is inefficient + the u.s. market too is dominated by a giant international business machines corp + but early on ibm offered its basic design to anybody wanting to copy it + dozens of small companies did swiftly establishing a standard operating system + that <unk> competition and growth allows users to change and mix brands easily and increases software firms ' incentive to write packages because they can be sold to users of virtually any computer + if a record industry lacked a common standard sony cd owners could listen to a sony version of <unk> 's like a <unk> but not one made for a <unk> player + that is the state of japan 's computer industry + nec wo n't release its code and every one of the dozen or so makers has its own <unk> operating system all <unk> with each other + ibm established its standard to try to stop falling behind <unk> apple computer but nec was ahead from the start and did n't need to <unk> in competitive allies + meanwhile the big players have n't tried to copy the nec standard + corporate pride as well as the close ties common among japanese manufacturers help explain why + most rivals have a working relationship with nec often through <unk> of technology the japan personal computer software association noted recently + they hesitate to market <unk> machines nec <unk> of such machines and marketing one would jeopardize their relationship + the result according to many analysts is higher prices and less innovation + while tens of thousands of software packages using the ibm standard are available in the u.s. they say only about N are written for nec + a year ago japan 's fair trade commission warned nec about possible violations of <unk> laws for discouraging retailers from discounting + in japan software is four to five years behind the u.s. because hardware is four to five years behind because nec is enjoying a monopoly complains <unk> <unk> the president of <unk> corp. one of japan 's leading <unk> publishing and software companies + there are no price wars no competition + an nec spokeswoman <unk> that prices are higher in japan because customers put a greater emphasis on quality and service than they do in the u.s. + she adds that some technological advances trail those in the u.s. because the japanese still import basic operating systems from american companies + but the market is changing + the government is funding several projects to push pc use + over the next three years public schools will get N million pcs a <unk> increase from current levels + in the private sector practically every major company is setting explicit goals to increase employees ' exposure to computers + toyota motor corp. 's sales offices in japan have <unk> the computers per employee that its own u.s. offices do over the next five years it is aiming for rough parity + within a year <unk> corp. a major cosmetics company plans to eliminate N <unk> jobs by putting on a central computer network some work such as credit reports currently performed in N separate offices + by increasing the number of pcs it uses from N to N <unk> <unk> electronics co. of <unk> hopes not only to make certain tasks easier but also to transform the way the company is run + managers have long been those who <unk> their subordinates so orders would be properly acted on a spokesman says + but new managers will have to be <unk> and <unk> and for that purpose it is necessary to create an environment where information from both inside and outside the company can be reached easily and also shared + meanwhile more computer makers now are competing for the new business + <unk> <unk> corp. a <unk> to the industry fought off a legal challenge and started selling nec <unk> last year + it has won about N N of the retail pc market + sony corp. which temporarily dropped out of the pc business three years ago started selling its work station in N and quickly became the leading japanese company in that market + in a country where <unk> room is scarce laptop machines will take a large portion of the industry 's future growth + toshiba corp. <unk> open that sector this summer with a <unk> machine that <unk> for less than N yen under $ N one of the smallest cheapest pcs available in the country + fujitsu ltd. is <unk> the most expensive promotion campaign in its history including a <unk> <unk> at tokyo <unk> for its sophisticated <unk> fm towns machine which it <unk> for everything from <unk> the family <unk> to practicing <unk> bar <unk> + many of the companies are even dropping their traditional independence and trying to band together to create some sort of standard + two years ago most of the smaller makers joined under the microsoft corp. <unk> to adopt a version of the american ibm at standard + that has n't generated much sales but this summer microsoft rallied all the major nec competitors to make their new machines compatible with the ibm <unk> standard + a healthy <unk> japanese market could also make it far easier for japanese companies to sell overseas where their share is still minimal + but it could also help american companies which also are starting to try to open the market + as with many other goods the american share of japan 's pc market is far below that in the rest of the world + u.s. makers have under N N share compared with half the market in europe and N N at home + though no formal trade barriers exist the japanese computer industry is difficult for outsiders to enter + if it were an open market we would have been in in N or N says <unk> pfeiffer who heads compaq computer corp. 's european and international operations + his company without any major effort sells more machines in china than in japan + although it has opened a new zealand subsidiary it is still only studying japan the only nation that has n't adopted <unk> specifications + and because general retail centers such as <unk> have little presence in japan sales remain in the iron grip of established computer makers + but the americans are also to blame + they long made little effort here + ibm though long a leader in the japanese mainframe business did n't introduce its first pc in japan until five years after nec did and that was n't compatible even with the u.s. ibm standard + apple did n't introduce a <unk> machine one that handles the chinese characters of written japanese until three years after entering the market + critics also say american companies charge too much + japan 's ftc says it is investigating apple for allegedly discouraging retailers from discounting + but the u.s. companies are <unk> their efforts + apple recently hired its first japanese president <unk> away an official of toshiba 's european operations as well as a whole japanese <unk> team + earlier this year it introduced a much more powerful <unk> operating system and a <unk> laser printer + ibm just last year started selling its first machine that could run in both japanese and english and that substantially <unk> <unk> with its american products + it may take five years to break even in japan says john a. <unk> who runs the <unk> office for <unk> & dodge a u.s. software company + but it 's an enormous business opportunity + from a reading of the somewhat <unk> <unk> medical literature on ru-486 the french abortion pill emerges as one of the <unk> <unk> around + this is not only because it <unk> the <unk> a job at which it actually is not <unk> efficient <unk> only N N to N N of them depending on which study you read <unk> taken in <unk> with the pill boosts the rate to N N + by contrast surgical abortion is N N effective + abortion via the pill is far more of an <unk> than conventional surgical abortion + it is <unk> the abortion part alone lasts three days and the clinical part <unk> a week 's worth of visits bloody one woman in a swedish trial required a <unk> although for most it resembles a <unk> period with bleeding lasting an average of N days and painful many women require <unk> shots to ease them through + <unk> and <unk> are other common side effects + timing is of the <unk> with ru-486 + it is most effective taken about a week after a woman misses her <unk> period up through the seventh week of pregnancy when it is <unk> less effective + that is typically about a <unk> window + so far all the studies have concluded that ru-486 is safe + but safe in the definition of <unk> bass of the reproductive health technologies project means there 's been no evidence so far of mortality + no one has <unk> the long-term effects of ru-486 on a woman 's health or <unk> + the drug seems to <unk> <unk> for three to seven months after it is taken + some women clearly have no trouble eventually <unk> again the studies have reported <unk> in their programs + but there are no scientific data on this question + rather <unk> <unk> studies reveal that ru-486 can cause birth defects <unk> the british medical journal reported in N + however dr. <unk> <unk> the french physician who invented ru-486 wrote in a science magazine article last month that the <unk> results could not be <unk> in <unk> and <unk> + the drug has a <unk> structure similar to that of des the <unk> drug that has been linked to <unk> and <unk> cancer in some of the daughters of the women who took it + all the published studies recommend that women on whom the drug proves <unk> not carry the pregnancy to term but <unk> a surgical abortion + a risk of birth defects a sure source of lawsuits is one reason the u.s. pharmaceutical industry is steering clear of ru-486 + one might well ask why bother with this drug at all + some abortion advocates have been asking themselves this very question + ru-486 probably represents a technical advance in an area where none is needed or at least not very much said <unk> <unk> president of the national abortion federation at a reproductive health conference in N + many physicians have expressed concern over the heavy bleeding which occurs even if the drug fails to induce an abortion + it typically takes from eight to N years to obtain the food and drug administration 's approval for a new drug and the cost of testing and marketing a new drug can range from $ N million to $ N million + the health and human services department currently <unk> the national institutes of health from funding abortion research as part of its $ N million contraceptive program + but the population council a <unk> $ N million nonprofit organization that has the backing of the rockefeller and mellon foundations and currently <unk> most u.s. research on <unk> has recently been paying for u.s. studies of ru-486 on a license from its french developer <unk> a joint subsidiary of the german pharmaceutical company hoechst and the french government + in the year since the pill went on the french market the national organization for women and its <unk> former now president <unk> <unk> 's fund for a <unk> majority have been trying to <unk> the u.s. pharmaceutical industry into getting involved + its <unk> prediction the pill will be available in the u.s. either legally or illegally in no more than N years + following the <unk> and <unk> lead has been a generally <unk> press + a june N article in mother jones magazine is typical of the general level of media ignorance + for a woman whose period is late using ru-486 means no waiting no walking past picket lines at abortion <unk> and no feet up in <unk> for surgery <unk> health writer <unk> fraser + it also means she will never have to know whether she had actually been pregnant + wrong on all counts miss fraser + ru-486 is being <unk> in france only under strict supervision in the presence of a doctor + <unk> reportedly has every pill marked and accounted for to make sure none <unk> into the black market + thus a woman who used ru-486 to have an abortion would have to make three trips to the clinic past those picket lines an initial visit for medical <unk> <unk> and those with previous pregnancy problems are eliminated and to take the pill a second trip N hours later for the <unk> <unk> either via injection or <unk> <unk> and a third trip a week later to make sure she has completely aborted + furthermore because timing is so critical with ru-486 she will learn via a <unk> examination and <unk> not only that she is pregnant but just how pregnant she is + no doctor who fears <unk> liability would likely <unk> a <unk> patient to the risk of hemorrhaging + many women may even see the dead embryo they have expelled a sight the <unk> industry typically <unk> them + at seven weeks an embryo is about <unk> of an inch long and <unk> human + at the <unk> of pro-choice members of congress a four-year <unk> bill for title x federal <unk> assistance now contains a $ N million grant for development evaluation and bringing to the marketplace of new improved contraceptive devices drugs and methods + if this passes a senate version has already been cleared for a floor vote that is likely early next year it would put the federal government into the contraceptive marketing business for the first time + it also could put the government into the ru-486 business which would please <unk> <unk> at what they view as <unk> in the private-sector drug industry + we do not know whether ru-486 will be as <unk> as some of the earlier <unk> methods released to <unk> <unk> <unk> from educated people who should have known better + remember the dalkon shield and the early <unk> pills + we will not know until a first generation of female guinea pigs all of whom will be more than happy to volunteer for the job has put the abortion pill through the clinical test of time + mrs. allen is a senior editor of insight magazine + this article is adapted from one in the october american <unk> + on june N a major part of our trade deficit went <unk> + no figure <unk> no <unk> just <unk> improved recording of some of our exports + the result + the commerce department found that u.s. exports in N net of imports were <unk> by $ N billion a year and <unk> at the annualized rate of $ N billion in the first quarter of N + more than half of the newly found net exports were from just a few <unk> categories + some of the biggest <unk> exporters american <unk> companies for example have yet to be fully included in our export statistics + nearly N years ago representatives of <unk> companies worked out a plan with the commerce department to improve the data on <unk> exports + both groups believed that tens of billions of dollars of service exports such as <unk> tourism legal accounting and other professional services <unk> to foreigners financial engineering and construction services and the like were not being counted as exports + the monthly trade deficit figure is limited to traditional merchandise trade manufactured goods and raw materials + in the quarterly <unk> report those merchandise trade figures are merged with statistics on exports and imports of services as well as returns on investments abroad by americans and returns on foreign investments in the u.s. + over time through benchmark surveys the corrected data on service exports and imports have been gathered + the first three major areas of the service sector to be revamped were expenditures by foreign students in the u.s. net after expenditures by americans studying abroad some exports by professional firms a law firm billing a german client for services <unk> in watching legislation in washington is as much an export as shipment of an american jet engine and improved data from travel and tourism + in just these three areas the commerce department found $ N billion more exports than previously reported and $ N billion more imports with the net result that the u.s. service surplus in N increased by $ N billion to $ N billion + combined with <unk> and revisions in other trade areas the value of u.s. net exports that had not previously been recorded was about $ N billion a year + that means that the u.s. trade deficit was running closer to $ N billion than to $ N billion in N and $ N billion annualized rather than $ N billion in the first quarter of N + these revised figures also may explain some of the recent strength of the dollar + the <unk> smaller trade deficit may have been already discounted in the market + what does this mean for trade policy + too early to tell but a trade deficit that is significantly smaller than we <unk> does suggest a review of our trade posture + it does not relieve the need for our <unk> efforts for both goods and services but it does suggest that it is our exports of services and not just borrowing that is financing our imports of goods + mr. freeman is an executive vice president of american express + the collapse of a $ N billion labor-management buy-out of united airlines parent ual corp. may not stop some of wall street 's top talent from collecting up to $ N million in fees + according to one person familiar with the airline the buy-out group led by united 's pilots union and ual chairman stephen wolf has begun billing ual for fees and expenses it owes to investment bankers law firms and banks + the <unk> even covers $ N million in commitment fees owed to citicorp and chase manhattan corp. even though their failure to obtain $ N billion in bank loans for the buy-out was the main reason for its collapse + under a merger agreement reached sept. N the ual board agreed to reimburse certain of the buy-out group 's expenses out of company funds even if the transaction was n't completed provided the group did n't breach the agreement + the failure to obtain financing does n't by itself constitute a breach + the merger agreement says the buy-out group is entitled to be repaid $ N million in fees for its investment bankers lazard <unk> & co. and salomon brothers inc. and its law firm paul weiss <unk> <unk> & garrison + the buy-out group is also entitled to $ N million to repay a fund created by the pilots union for an employee stock ownership plan + in addition to the $ N million for citicorp and chase salomon brothers is also owed $ N million for promising to make a $ N million bridge loan + a spokesman for the buy-out group was n't immediately available for comment + separately ual stock rose $ N a share to $ N in composite trading on the new york stock exchange on reports that los angeles investor marvin davis has asked united airlines unions if they 're interested in <unk> with mr. davis in a new bid for ual + but neither the pilots nor the machinists appear interested and mr. davis is barred from making a new bid under terms of an agreement he made with ual in september unless ual <unk> an offer below $ N a share + wall street continued to buckle under the public outcry against computer-driven program trading + kidder peabody & co. a unit of general electric co. announced it would stop doing stock-index arbitrage for its own account and merrill lynch & co. pulled out of the practice altogether + at the new york stock exchange which has been <unk> by complaints from angry individual investors and the exchange 's own listed companies chairman john j. phelan jr. held an emergency meeting with senior partners of some of the big board 's N stock specialist firms + the specialists a trader said were <unk> about mr. phelan 's recent remarks that sophisticated computer-driven trading strategies are here to stay + many investors blame program trading for wild swings in the stock market including the 190-point plunge in the dow jones industrial average on oct. N + a specialist is an exchange member designated to maintain a fair and orderly market in a specified stock + mr. phelan 's meeting with the floor brokers comes as he prepares to explain the exchange 's position on program trading to key congressional regulators in a closed session tomorrow according to exchange officials + a big board spokesman would only say we 're working the problem and looking at the issue and meeting with a broad number of customers and constituents to get their views and ideas on the issue + the program-trading outcry was taken to a new level when giant contel corp. said it and N or more of the big board 's listed companies are forming an unprecedented alliance to complain about the exchange 's role in program trading + the decision by merrill the nation 's largest securities firm represents the biggest retreat yet from program trading + merrill has been the <unk> stock-index arbitrage trader on the big board this year executing an average of N million shares a month in such trades or about one million shares a day + merrill 's move is one of the most sweeping program-trading <unk> of recent days because the big securities firm will no longer execute stock-index arbitrage trades for customers + most wall street firms in pulling back have merely stopped such trading for their own accounts + merrill has been one of the main firms executing index arbitrage for customers + merrill also said it is lobbying for significant regulatory controls on program trading including tough margin or <unk> requirements and limits on price moves for <unk> financial futures + merrill in a statement by chairman william a. <unk> and president daniel p. <unk> said index arbitrage has been clearly identified in the investing public 's mind as a contributing factor to excess market volatility so merrill wo n't execute such trades until effective controls are in place + in stock-index arbitrage traders buy and sell large amounts of stocks with offsetting trades in stock-index futures and options + the idea is to lock in profits from short-term swings in volatile markets + last thursday painewebber group inc. also said it would cease index arbitrage altogether but the firm was n't as big an index <unk> as merrill is + other large firms including bear stearns & co. and morgan stanley & co. last week announced a <unk> from index arbitrage but only for the firms ' own accounts + kidder made an abrupt <unk> on program trading yesterday after a special meeting between the firm 's president and chief executive officer michael carpenter and its senior managers + just a week ago mr. carpenter <unk> defended index arbitrage at kidder the most active index-arbitrage trading firm on the stock exchange this year + index arbitrage mr. carpenter said last week does n't have a negative impact on the market as a whole and kidder 's customers were sophisticated enough to know that + but yesterday mr. carpenter said big institutional investors which he would n't identify told us they would n't do business with firms that continued to do index arbitrage for their own accounts + we were following the trend of our competitors who were under pressure from institutions he said + kidder so far this year has executed a monthly average of N million shares in index-arbitrage trading and is second only to morgan stanley in overall program trading which includes index arbitrage + most of kidder 's program trading is for its own account according to the new york stock exchange + kidder denied that ge 's chairman and chief executive john f. welch had anything to do with kidder 's decision + but at least one chief executive said he called mr. welch to complain about kidder 's aggressive use of program trading and other market sources said they understood that mr. welch received many phone calls complaining about kidder 's reliance on index arbitrage as a major business + kidder has generally been sensitive to suggestions that ge makes decisions for its kidder unit + our decision had nothing to do with any pressure mr. welch received mr. carpenter said + this was a kidder peabody <unk> decision + a spokeswoman for ge in fairfield conn. said absolutely no one spoke to jack welch on this subject and added anyone who claims they talked to jack welch is n't telling the truth + supporters of index arbitrage have n't been publicly sticking up for the trading strategy as some did during the post-crash outcry of N + but merrill lynch in its statement about pulling out of index arbitrage suggested that the current debate has missed the mark + merrill said it continues to believe that the causes of excess market volatility are far more complex than any particular computer trading strategy + indeed there are legitimate hedging strategies used by managers of large portfolios such as pension funds that involve program trading as a means of protecting the assets of their pension beneficiaries + merrill 's index arbitragers will continue to do other kinds of <unk> program trading so there probably wo n't be any layoffs at the firm people familiar with merrill 's program operation said + meanwhile bear stearns chairman and chief executive alan c. greenberg said his firm will continue stock-index arbitrage for its clients + at the firm 's annual meeting last night he told shareholders that index arbitrage wo n't go away despite the public outcry + if they think they are going to stop index arbitrage by causing a few wall street firms to quit they are crazy mr. greenberg said + it 's not going to stop it at all + mr. greenberg noting that stock-index arbitrage rises and <unk> with stock market 's volatility said that for the first four months of the firm 's fiscal year beginning in july stock-index arbitrage had been a break-even proposition for bear stearns + in response to a shareholder 's suggestion mr. greenberg agreed that european firms will simply pick up the index-arbitrage business left behind by u.s. institutions + pressure from big institutional investors has been the major catalyst for wall street 's program-trading <unk> + and there was speculation yesterday that fidelity investments and other large mutual-fund companies might soon follow the lead of kemper corp. and other institutions in cutting off trading business to securities firms that do program trading + a fidelity spokesman in boston denied the speculation saying the program-trading issue was more of a regulatory problem + but a much smaller mutual fund company the <unk> investment management co. unit of <unk> san antonio texas said it informed nine national brokerage firms it will cease business with them unless they stop index-arbitrage trading + <unk> with N mutual fund accounts manages more than $ N billion $ N billion of which is in the stock market + michael j.c. roth <unk> executive vice president called program trading <unk> + he said there is no valid investment reason for stock-index futures to exist + a <unk> move is clearly on + charles wohlstetter chairman of contel who is helping <unk> the alliance of big <unk> firms said he had no time to work yesterday because he received so many phone calls <unk> and letters supporting his view that the big board has been turned into a gambling casino by program traders + we are reaching the moment of truth on wall street said rep. edward j. markey d. mass. chairman of the house subcommittee on telecommunications and finance + wall street is beginning to realize as shakespeare said the trouble is not in our stars but in ourselves + craig <unk> and anne <unk> contributed to this article + an ancient <unk> <unk> <unk> or drinking cup was recovered <unk> at sotheby 's this spring and has been returned to the manhattan couple who lost it in a <unk> three years ago + robert guy an associate <unk> at the princeton art museum was <unk> a june <unk> sale at the auction house when he recognized the <unk> which he as a specialist in <unk> <unk> and a careful reader of the stolen art alert in <unk> reports knew was stolen + the timing of his visit was <unk> the man who had brought it in for an estimate had returned to collect it and was waiting in the hall + to confirm mr. guy 's <unk> sotheby 's and <unk> exchanged photos by fax and the waiting man apparently innocent of knowledge that the <unk> was stolen agreed to release it + the cup had been insured and in short order it was given over to a <unk> & son representative + the original owners <unk> repaid the claim and took their <unk> home + a former <unk> of the museum of <unk> art in <unk> <unk> n.y. pleaded guilty in july to stealing and selling original signed and dated comic strips among them N dick <unk> strips by <unk> gould N prince <unk> sunday <unk> by <unk> foster and a dozen walt disney <unk> <unk> according to barbara hammond the museum 's director + he sold them well below market value to raise cash to pay off mounting credit-card debts incurred to buy presents for his girlfriend his attorney philip russell told <unk> + the <unk> <unk> sherman <unk> of greenwich conn. had worked his way up from <unk> in seven years at the museum + the theft was discovered early this year soon after ms. hammond took her post + sentencing was postponed on aug. N when mr. <unk> was <unk> for depression + his efforts to get back the stolen strips had resulted in recovery of just three + but on oct. N he had reason to <unk> + two days earlier his attorney met in a park avenue law office with a <unk> dealer who expected to sell N of the most important stolen strips to mr. russell for $ N + instead new york city police seized the stolen goods and mr. <unk> avoided jail + he was sentenced to N hours of community service and <unk> to the museum of $ N + authorities at london 's <unk> airport are investigating the disappearance of a paul <unk> <unk> young <unk> woman in a red <unk> that has two <unk> on its <unk> opposite side + valued at $ N million it was part of a <unk> shipment + the <unk> number was changed en route and paper work showing that the <unk> had cleared customs was <unk> so it was a week before three of the four <unk> could be located in a <unk> warehouse and the <unk> discovered missing + although <unk> authorities have been watching a group of allegedly <unk> <unk> <unk> for some time the <unk> may be lost + chief inspector peter <unk> of the criminal investigation department at the airport said it is not uncommon for property to be temporarily <unk> or <unk> + officials at the university of virginia art museum certainly would agree + their museum had purchased an <unk> <unk> column <unk> and shipped it from london + it was reported stolen in transit en route to washington d.c. in february + months later the <unk> <unk> arrived in good condition at the museum in <unk> having <unk> traveled by a <unk> route through <unk> + two mexican college <unk> not professional art thieves have been arrested for a N christmas <unk> <unk> from the national museum of <unk> in mexico city + about N <unk> <unk> <unk> and <unk> <unk> including some of mexico 's best-known <unk> <unk> were taken + the government offered a reward for the return of the <unk> but routine police work led to the recovery + as it turned out carlos <unk> <unk> and <unk> <unk> garcia had hidden the haul in a <unk> in the <unk> family 's home for a year + then they took the art to <unk> and began to trade some of it for cocaine + information from an arrested drug <unk> led to the two men and the recovery of almost all the stolen art + among other happy news <unk> from the german democratic republic the leipzig museum of fine arts announced that it has recovered cemetery in the snow a painting by the german romantic <unk> <unk> david <unk> + the artist 's <unk> subjects bring high prices on the world market and the u.s. state department notified <unk> of the theft in february N + according to a source at the east europe desk two previously convicted <unk> were charged tried convicted and sentenced to prison terms of four and N years + the precious <unk> cut from its frame at the time of the theft was found in nearby <unk> hidden in the <unk> of an easy chair in the home of the girlfriend of one of the thieves + no charges were brought against her + <unk> <unk> painting is meant to fool the eye but robert lawrence trotter N of <unk> square pa. took his <unk> seriously + he painted one himself in the style of john <unk> and sold it as a <unk> original to <unk> dealers in <unk> conn + mr. trotter 's painting showed a wall of wood boards with painted <unk> tacked down in a <unk> <unk> behind the <unk> were <unk> <unk> faded and <unk> papers and currency + mr. trotter 's fake <unk> was offered at a bargain price of $ N with a phony story that it <unk> to his wife 's late <unk> in new <unk> conn + the dealers immediately showed their new acquisition to an expert and came to see it as a fake + they persuaded mr. trotter to take it back and with the help of the fbi taped their conversation with him + after his arrest the <unk> admitted to <unk> and selling other paintings up and down the eastern <unk> + ms. <unk> is executive director of the international foundation for art research <unk> + ford motor co. said it is <unk> about N of its <unk> <unk> because the <unk> <unk> was improperly applied to some cars + separately ford and mazda motor corp. 's u.s. sales arm said they are <unk> about N <unk> mercury <unk> and N N N and N model mazda <unk> equipped with <unk> <unk> engines to replace the oil <unk> cap + mazda makes the <unk> for ford + as a result of the <unk> problem on the ford <unk> <unk> <unk> may easily separate from the car during <unk> impact the u.s. auto maker said + when properly applied the <unk> is designed to retain the <unk> in place in a crash test at N miles per hour + a ford spokesman said the dearborn mich. auto maker is n't aware of any injuries caused by the <unk> problem + ford said owners should return the cars to dealers so the <unk> can be removed and <unk> <unk> + mazda and ford said a combination of limited <unk> <unk> and improper maintenance could cause engine oil in some of the mercury <unk> and mazda <unk> to <unk> more rapidly than normal causing increased engine noise or reduced engine life + they said the problems are n't safety related + both companies will replace the oil <unk> cap with a <unk> oil <unk> cap + both also will <unk> and replace if necessary oil filters and oil <unk> at no charge to owners + for owners who have followed the recommended oil maintenance schedule mazda will extend to five years or N miles the warranty term for engine damage due to <unk> engine oil deterioration + the normal term for the N and N model N is two years or N miles the term for the N N is three years or N miles + ford said the term on its warranty is already six years or N miles + separately ford said it will offer $ N cash rebates to buyers of its <unk> ford <unk> sport utility vehicle + it said it will also offer buyers the option of financing as low as N N on <unk> loans + ford also offered the low financing rate option on <unk> <unk> which previously carried a $ N cash discount + ford said the new offer will begin saturday and run indefinitely + the supreme court agreed to decide whether the federal pension benefit guaranty corp. may require ltv corp. to <unk> funding responsibility for a $ N billion <unk> in the company 's pension plans + the high court 's decision expected next spring may affect the stability of many large corporate pension plans that have relied on the availability of pension insurance provided by the federal pension regulatory and insurance agency + the agency which is funded through insurance premiums from employers <unk> pension benefits for some N million private-sector workers who take part in <unk> pension plans + it recently reported assets of $ N billion and liabilities of $ N billion + in its appeal to the high court the agency said the federal appeals court ruling which favored ltv threatened to transform the agency from an insurer of troubled pension plans into an <unk> source of industry <unk> + the ruling also may determine how quickly ltv is able to complete its chapter N reorganization + ltv filed for protection under chapter N in federal bankruptcy court in N + the filing was partly the result of the $ N billion <unk> in ltv 's three pension plans operated for its ltv steel co. subsidiary 's employees + in january N as ltv steel continued operating while under reorganization the agency terminated the three ltv pension plans to keep its insurance liability from increasing + termination means that the agency 's insurance assumes the liabilities and pays the pension benefits already owed under the plans but workers do n't <unk> new benefits + a few months later under pressure from the united steelworkers of america ltv instituted a new program to provide retirement benefits similar to those in the terminated plans + because the federal pension agency had taken over the old plans ltv would be responsible only for benefits paid under the new pension plans + but the agency viewed the creation of the new plans as an abuse of federal pension law and an attempt to transfer the liability of the $ N billion <unk> from ltv to federal insurance + the agency also concluded that ltv 's financial status had improved while it was under reorganization + in september N it ordered ltv to <unk> liability and funding for the three original plans + ltv challenged the order and a federal district court in new york in june N ruled that the agency improperly ordered ltv to <unk> responsibility for the plans + in may a federal appeals court in new york agreed that the agency acted <unk> + the appeals court said there was no evidence that congress intended to allow the pension agency to consider a company 's creation of new benefit plans as a basis for ordering that company to <unk> liability for old plans + the appeals court also said the agency had to consider a company 's long-term ability to fund pension plans not just short-term improved financial status + in dallas ltv said that it was disappointed that the court agreed to hear the case because it believes the move will further delay its chapter N proceedings + the company has n't been able to come up with a reorganization plan in part because of the sizable disagreement with the pension agency + but ltv a steel aerospace and energy concern said it is confident that the supreme court will <unk> the <unk> decisions and said it expects to continue discussions with the agency about a settlement while the case is being reviewed + pension benefit guaranty corp. vs. ltv corp + the commercial was absolutely silent + breaking into the <unk> chicago <unk> <unk> match during last week 's monday night football game it was nothing but simple block letters <unk> on the tv screen + due to the earthquake in san francisco nissan is donating its commercial air time to broadcast american red cross emergency relief messages + please contribute what you can the ad said + the nissan <unk> <unk> on the screen for a moment and then came a taped plea for donations from former president reagan followed by the silent print telling viewers where to call + within two hours viewers pledged over $ N according to a red cross executive + call it disaster marketing + nissan motor is just one of a slew of advertisers that have <unk> their ads to the devastating san francisco quake and hurricane hugo + sometimes the ads attempt to raise money always they try to boost good will + by advertising disaster relief these companies are hoping to don a white hat and come out a hero + but the strategy can <unk> if the ads appear too <unk> the companies may end up looking like rank <unk> instead of good <unk> + that has n't <unk> plenty of companies + along with nissan grand metropolitan plc 's burger king and new york life insurance have tied ads to red cross donations + other ads do n't bother with the <unk> a <unk> if <unk> american telephone & telegraph ad that aired sunday <unk> <unk> of the devastation in san francisco and charleston s.c. with interviews of people <unk> how at&t helped + at nissan we felt we wanted to do something to help them gather money and we had this <unk> on monday night football explains <unk> <unk> a nissan advertising creative manager + what did we get out of it + we got some exposure and pretty much good will + the ads are just the latest evidence of how television advertising is getting faster on the draw + while tv commercials typically take weeks to produce advertisers in the past couple of years have learned to turn on a <unk> to crash out ads in days or even hours + the big brokerage houses learned the art of the instant commercial after the N crash when they turned out reassuring ads inviting investors right back into the stock market + they <unk> out another crop of instant commercials after the sudden market dip a few weeks ago + nissan created its quake ad in a weekend + but as advertisers <unk> onto disasters with increasing frequency they risk hurting themselves as much as helping the cause + they chance <unk> the customers they hope to woo by looking like <unk> <unk> + people see extra messages in advertising and if a manufacturer is clearly trying to get something out of it if it 's too <unk> then consumers will see through that warns john philip jones chairman of the advertising department at the newhouse school of public communications at <unk> university + it can <unk> because companies can step across the line and go too far be too <unk> agrees gary <unk> a principal with new england consulting group <unk> conn + the ultimate form of charity is when you do n't tell anyone + still he says that only a few of the <unk> campaigns have been <unk> and that the majority have been truly beneficial to the people who need the help + we do n't consider that <unk> chasing + the companies running the disaster ads certainly do n't see themselves as <unk> <unk> either + burger king 's chief executive officer barry <unk> stars in ads saying that the fast-food chain will <unk> N cents to the red cross for every purchase of a <unk> <unk> <unk> + the campaign which started last week and runs through nov. N with funds earmarked for both the quake and hugo was barry 's idea a spokeswoman says + barry felt very committed + he felt we should be giving something back + while the campaign was mr. <unk> 's idea however he wo n't be paying for it the donations will come out of the chain 's national advertising fund which is financed by the franchisees + and by <unk> donations on <unk> <unk> a new <unk> line the fast-food chain is trying to push burger king works a sales pitch into its <unk> message + toyota 's upscale lexus division a sponsor of the world series also put in a plug for red cross donations in a world series game it sponsored + the world series is brought to you by lexus who urges you to help relieve the suffering caused by the recent earthquake the game announcer said + and new york life made a plea for red cross donations in newspaper ads in the san francisco area <unk> onto the <unk> of the red cross 's <unk> reputation the red cross has been helping people for N years + new york life has been doing the same for over N years + nancy craig advertising manager for the red cross readily admits they 're <unk> on our reputation + but she has no problem with that she says in the meanwhile they 're helping us + the red cross does n't track contributions raised by the disaster ads but it has <unk> $ N million since it first launched its hurricane relief effort sept. N + ad notes + new account + <unk> king co. golden valley minn. awarded its $ N million <unk> account to <unk> <unk> <unk> & <unk> a <unk> <unk> iowa division of young & rubicam + the account had previously been handled by saatchi & saatchi <unk> new york + tv guide + <unk> & kennedy <unk> ore. was named to handle the news corp. publication 's $ N million to $ N million <unk> account + <unk> <unk> <unk> the new york agency that had handled the account since N resigned the account about two weeks ago + no alcohol + miller brewing co. will introduce its first <unk> beer jan. N + the <unk> called miller sharp 's will be supported by ads developed by <unk> <unk> & <unk> milwaukee + radio + viacom broadcasting inc. definitively agreed to acquire <unk> am and <unk> in san francisco for about $ N million from pacific fm inc + the supreme court let stand a new york court 's ruling that the manufacturers of a drug once used to prevent <unk> must share liability for injuries or deaths when the maker of an individual <unk> is unknown + the high court 's action refusing to hear appeals by several drug companies is likely to have a significant impact at several levels + the most immediate effect is in new york where former manufacturers of the <unk> drug des the synthetic female <unk> <unk> face the prospect of shared liability for damages in many of the N to N des lawsuits pending in that state + the lawsuits stemmed from the development of cancer and other problems in the daughters of women who took the drug + on a broader scale the ruling could encourage other states ' courts to adopt the logic of the new york court not only in des cases but in other <unk> lawsuits as well + the new york court of appeals ruling parallels a N decision by the california supreme court requiring shared liability among manufacturers for injuries when it ca n't be determined which company is at fault + paul <unk> a new york lawyer who represents des victims said that before the new york ruling only the states of washington and wisconsin had followed the california decision + now that the new york decision has been left intact other states may follow suit + generally when new york and california go one way it has a tremendous influence on other states especially small ones said mr. <unk> + the high court refused to hear appeals by <unk> drug co. which went out of business in N and was taken over by <unk> <unk> trust <unk> squibb & sons inc. a unit of squibb corp. and eli lilly & co + the appeals involved des which was approved by the food and drug administration for use from the <unk> until N to prevent <unk> during pregnancy + in N the fda banned the use of des after studies linked it to cancer and other problems in daughters of women who took the drug + lawsuits over the harm caused by des have flooded federal and state courts in the past decade + in many cases the lawsuit was filed long after the drug was used the cancer in the daughters was typically not detected for years and there is no way to prove which of several companies manufactured the <unk> consumed by certain women + under traditional legal theories inability to prove which company manufactured a drug that caused an injury or death would lead to the lawsuit being dismissed + but in its ruling last april the new york court said that all producers of the <unk> drug should share liability when the manufacturer of a specific <unk> ca n't be determined + each company 's share of liability would be based on their share of the national des market + the new york court also upheld a state law passed in N extending for one year the statute of limitations on filing des lawsuits + the effect is that lawsuits that might have been barred because they were filed too late could proceed because of the one-year extension + <unk> drug co. vs. <unk> <unk> squibb & sons inc. vs. <unk> and eli lilly & co. vs. <unk> + government contractors + the high court leaving intact a $ N million damage award against general dynamics corp. declined to resolve questions about a legal defense against civil lawsuits often used by government contractors + last year the supreme court defined when companies such as military contractors may defend themselves against lawsuits for deaths or injuries by <unk> that they were simply following specifications of a federal government contract + in that decision the high court said a company must prove that the government approved precise specifications for the contract that those specifications were met and that the government was warned of any dangers in use of the equipment + but last february a federal appeals court in new orleans upheld a damage award against general dynamics rejecting the company 's use of the government contractor defense + the appeals court said the defense is valid only if federal officials did more than rubber <unk> a company 's design or plans and engaged in a <unk> review and evaluation on a par with a policy decision + general dynamics appealed to the high court backed by numerous business trade groups arguing that the appeals court definition restricts the defense too severely + general dynamics was sued by the families of five navy <unk> who were killed in N after they <unk> a <unk> through a <unk> chamber + the accident was caused by <unk> operation of a <unk> + a federal district court awarded damages to the families and the appeals court <unk> the award + general dynamics corp. vs. <unk> + court in brief + in other action yesterday the high court + let stand the mail fraud and conspiracy conviction of john <unk> a former vice president of <unk> <unk> corp. a unit of nestle s.a + the conviction stemmed from federal charges of consumer fraud for sale of phony <unk> apple <unk> between N and N + <unk> vs. u.s. + left intact an award of $ N million in damages against dow chemical co. in the death of an oregon man from exposure to agent orange + the award was made by a federal court to the widow of a u.s. forest service employee who contracted <unk> 's disease after using <unk> containing agent orange in a <unk> program + it can be hoped that spanish prime minister <unk> gonzalez will draw the right conclusion from his narrow election victory sunday + a strong challenge from the far left the communist coalition <unk> <unk> failed to topple him + he should consider his victory a mandate to continue his <unk> economic reforms and not a demand that he move further left + if he follows the correct path he may be able to look back on this election as the <unk> mark of <unk> opposition + the far left had some good issues even if it did not have good programs for dealing with them + it could point to plenty of <unk> that the spanish economic <unk> so far has failed to cure + unemployment still is officially recorded at N N the highest rate in europe although actual <unk> may be lower + housing is scarce and public services the court system schools mail service telephone network and the highways are in <unk> condition + large pockets of poverty still exist + the left also is critical of the style of the socialist government a remarkable parallel to the situation in britain + mr. gonzalez and his colleagues particularly the finance minister carlos <unk> are charged with having abandoned their socialist principles and with having become arrogant <unk> who refuse even to go on television controlled by the state to face their <unk> + in response to this the socialist prime minister has simply cited his free-market <unk> + they are very considerable since N when spain joined the european community its gross domestic product has grown at an annual average of N N the fastest in the ec + in that time more than N million jobs have been created and the official jobless rate has been pushed below N N from N N + a N N inflation rate dropped below N N + net foreign investment through august this year has been running at a pace of $ N billion about double the year-earlier rate + mr. gonzalez also has split with the left in <unk> spain 's nato commitment and in renewing a defense treaty with the u.s. + mr. gonzalez is not quite a <unk> <unk> revolutionary however + he did not go as far as he could have in tax reductions indeed he combined them with increases in indirect taxes + yet the best the <unk> could do was not enough to deter the biggest voting bloc nearly N N from <unk> the direction spain is taking + now he can go further + he should do more to reduce tax rates on wealth and income in recognition of the fact that those cuts yield higher not lower revenues + he could do more to cut public subsidies and transfers thus making funds available for public services <unk> of money for six years + the voters delivered mr. gonzalez a third mandate for his successes + they as well as numerous latin american and east european countries that hope to adopt elements of the spanish model are supporting the direction spain is taking + it would be sad for mr. gonzalez to abandon them to <unk> his foes + monday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp. freddie mac posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par + N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + oh that terrible mr. ortega + just when american <unk> had pulled the arms plug on the contras and their friend ronald reagan along comes mr. ortega in costa rica this weekend to <unk> into the hands of what are often called conservatives + conservatives are the <unk> in u.s. politics which always said that mr. ortega and his friends do n't want to hold an election in nicaragua + liberals are the <unk> that says give peace a chance now they are saying mr. ortega should give them a break <unk> the conservatives ask them to vote for bullets instead of <unk> + we suspect daniel ortega knows the difference between a <unk> and a strategy + he knows that making george bush look silly in a photograph with him will trigger <unk> <unk> and that announcing an end to the liberals ' cease-fire will produce mainly their concern over the contras ' military activities in northern nicaragua + mr. ortega understands better than those who worry about his behavior that what <unk> the sandinista movement is not democratic peace but <unk> <unk> + it is the presence of internal and external enemies which justifies the need for a large active army that mikhail gorbachev 's soviet union continues to supply with bullets + annualized interest rates on certain investments as reported by the federal reserve board on a <unk> basis + a discounted rate + b week ended wednesday october N N and wednesday october N N + c yields adjusted for constant maturity + <unk> corp. said the government of spain approved the marketing of its <unk> <unk> drug to treat kidney cancer + the biotechnology concern said spanish authorities must still clear the price for the treatment but that it expects to receive such approval by year end + four other countries in europe have approved <unk> in recent months + <unk> is currently trying to obtain federal regulatory clearance for u.s. distribution + the treasury department proposed that banks be required to keep detailed records of international wire transfers which officials believe is the main vehicle used by drug traffickers to move billions of dollars in and out of the u.s. + in recent testimony on capitol hill treasury officials said they were considering the new reporting requirements and the expected publication of the proposal in the federal register today is the first official step toward creating final regulations + the treasury is still working out the details with bank trade associations and the other government agencies that have a hand in fighting money laundering + among the possibilities the treasury is considering are requirements that banks keep records identifying the <unk> and recipients of international wire transfers + another suggestion would draw banks more directly into tracking down money <unk> by developing a <unk> international wire transfer profile which banks would use to <unk> questionable payments + but banks may prefer using a profile that targets selected transactions rather than a blanket reporting requirement + banks now are required only to report cash deposits or withdrawals of $ N or more + but wire transfers from a standing account including those bigger than $ N are n't reported + officials believe this has left a <unk> <unk> that illegal drug businesses are <unk> + authorities estimate that revenues from illegal drugs in the u.s. total about $ N billion annually + sen. john kerry d. mass. chairman of a senate foreign relations subcommittee that oversees the issue of money laundering criticized the proposal for ignoring wire transfers between foreign banks that are executed and cleared on u.s. wire systems + the american bankers association did n't have any comment on the plan + the proposal now enters a <unk> comment period after which the treasury will propose final regulations followed by another comment period + western union corp. took steps to withdraw its proposed debt swap for $ N million in high-interest notes and said it is looking at other alternatives for refinancing the debt + western union had said two weeks ago that it might withdraw the pending offer which would have replaced $ N million in so-called reset notes now paying N N annual interest and set to come due in N with two new issues paying lower interest + yesterday the company said it had filed a request with the securities and exchange commission to withdraw the registration statement regarding the proposed swap + a western union spokesman citing adverse developments in the market for high-yield junk bonds declined to say what alternatives are under consideration + but some holders of the western union notes expect the company to propose a <unk> debt swap that will give them a substantial equity stake in the company + western union has had major losses in recent years as its <unk> business has faltered in the face of competition from facsimile machines and as other business ventures have gone <unk> + the major question said one holder who asked not to be named is whether new york investor bennett s. <unk> whose <unk> partners controls western union is willing to offer a large enough equity stake to <unk> bondholders into agreeing to a new swap + the $ N million in notes the largest chunk of western union 's $ N million in long-term debt stems from the company 's major restructuring in december N + the notes became <unk> when reset provisions allowed their interest rate to be raised to N N last june + western union had offered to swap each $ N face amount of the notes for six shares of common stock and two new debt issues a $ N note paying an interest rate starting at N N annually and rising in later years due in N and a $ N note due in N paying a fixed rate of N N and including rights protecting a holder against a decline in the trading price of the bond + western union must make $ N million in interest payments on the reset notes on dec. N and a company spokesman said it fully intends to meet the payments + but western union has said it must lower the interest rate on its debt to regain full financial health + genentech inc. said the west german distributor of its heart drug tpa reached a joint marketing agreement with a subsidiary of hoechst ag which makes the rival <unk> agent <unk> + the biotechnology concern said the agreement between its longtime west german distributor <unk> 's dr. <unk> <unk> <unk> subsidiary and hoechst 's <unk> subsidiary was an attempt to expand the market for <unk> drugs in general + a genentech spokeswoman said the agreement calls for hoechst to promote tpa for heart patients and <unk> for other <unk> purposes + investors in the over-the-counter market dumped banking and insurance issues sending the nasdaq composite index lower for the third consecutive session + all nasdaq industry indexes finished lower with financial issues hit the hardest + despite some early computer-guided program buying the nasdaq composite fell N to N + the otc market now has declined in eight of the past N sessions + the nasdaq bank index fell N to N while the insurance index fell N to N and the other finance index dropped N to N + the largest financial issues as measured by the nasdaq financial index tumbled N to + meanwhile the index of the N biggest <unk> stocks the nasdaq N gained N to N + profit-taking accounted for much of the slide in otc stock prices according to david mills senior vice president of boston company advisers + he said many portfolio managers whose year-end bonuses are tied to annual performance are selling now rather than risk seeing their gains erode further + the profit <unk> is definitely going on said mr. mills whose firm manages $ N million for boston co + tax-loss sellers those investors who sell <unk> stocks so they can <unk> their losses from this year 's income are also getting out mr. mills said + that 's helping put pressure on both the market 's winners and its losers + the stocks that have been the best are having big <unk> and the ones that have been the worst are getting clobbered mr. mills said + he expects the market to sink further and to reach a low sometime next month or in december + the selling by money managers and individual investors is turning traders bearish as well + we are advising a lot of our clients to make moves that make sense to them rather than waiting until the last minute because things have been so volatile said william <unk> head of otc trading at a.g. edwards & sons in st. louis + ralph <unk> head of the otc trading department at smith barney harris upham said many market players are awaiting some resolution of the current debate over program trading + much of the market 's recent volatility has been blamed on this large-scale computerized trading technique that can send stock prices surging or <unk> in a matter of minutes + the problem has been particularly damaging to the otc market traditionally a base for the small investor + weisfield 's surged N to N after agreeing in principle to be acquired by a unit of ratners group for $ N a share + the stock jumped N N friday when the company announced it was in takeover talks + ratners and weisfield 's said they expect to sign definitive agreements shortly and to complete the transaction by dec. N + <unk> federal savings bank advanced N N to N N after it said it is in talks with a possible acquirer + the bank said the talks resulted from <unk> by its financial adviser + jaguar assumed its recently <unk> place on the otc most active list as its american depository receipts gained N to N N on volume of N million shares and daimler-benz joined the list of companies interested in the british car maker + <unk> said it has had talks with jaguar about possible joint ventures + meanwhile general motors and ford motor continue their pursuit of the company + ford has acquired more than N N of jaguar 's shares and gm has received u.s. regulatory clearance to buy N N + <unk> pizza time gained N N to N + the company reported third-quarter operating profit of N cents a share compared with N cents a share a year earlier + a third-quarter charge of $ N million related to planned restaurant closings resulted in a net loss for the quarter + employers casualty which reported a $ N million third-quarter loss late friday fell N N to N N + the loss was largely due to a $ N million addition to reserves + employers casualty had a loss of $ N million in the year-earlier quarter + old stone fell N N to N N + late friday the company reported a loss of $ N million for the third quarter after earning $ N million a year before + the loss came after a $ N million addition to loan-loss reserves + the bank made a $ N million provision in the N quarter + old stone repeated projections that it will be profitable for the fourth quarter and will about break even for the year + <unk> lincoln federal savings bank sank N to N N after announcing a <unk> that will change senior management and <unk> the bank 's mortgage business as a separate unit + the bank also said it will establish a loan-loss reserve of $ N million to $ N million against a construction loan that is in default + the bank which previously said it was for sale said it has received no offers and that its board will review whether to continue soliciting bids + medical scientists are starting to <unk> a handful of genes which if damaged <unk> the chaotic growth of cells that <unk> cancer + scientists say the discovery of these genes in recent months is painting a new and startling picture of how cancer develops + an emerging understanding of the genes is expected to produce an array of new strategies for future cancer treatment and prevention + that is for the future + already scientists are developing tests based on the newly identified genes that for the first time can predict whether an otherwise healthy individual is likely to get cancer + it 's a <unk> set of <unk> says <unk> vogelstein a johns hopkins university researcher who has just found a gene <unk> to the triggering of colon cancer + only a decade ago cancer was a black box about which we knew nothing at the <unk> level + today we know that the accumulation of several of these altered genes can <unk> a cancer and then <unk> it into a deadly state + scientists call the new class of genes <unk> or simply <unk> genes + when <unk> normally they make proteins that hold a cell 's growth in check + but if the genes are damaged perhaps by radiation a chemical or through a chance accident in cell division their <unk> proteins no longer work and cells normally under control turn malignant + the newly identified genes differ from a family of genes discovered in the early 1980s called <unk> + <unk> must be present for a cell to become malignant but researchers have found them in normal as well as in <unk> cells suggesting that <unk> do n't cause cancer by themselves + in recent months researchers have come to believe the two types of cancer genes work in concert an <unk> may turn <unk> cells malignant only after the tumor-suppressor gene has been damaged + like all genes tumor-suppressor genes are inherited in two copies one from each parent + either copy can make the proteins needed to control cell growth so for cancer to arise both copies must be <unk> + a person who is born with one defective copy of a <unk> gene or in whom one copy is damaged early in life is especially prone to cancer because he need only lose the other copy for a cancer to develop + emerging genetic tests will be able to spot such <unk> individuals <unk> in what some scientists believe is a new age of <unk> cancer <unk> + bill and <unk> <unk> are among the first beneficiaries of the new findings + the <unk> mass. couple knew even before <unk> became pregnant in N that any child of theirs had a N N chance of being at risk for retinoblastoma an eye cancer that occurs about once every N <unk> + mr. <unk> N years old knew he carried a damaged gene having lost an eye to the rare tumor when he was only two months old after his mother had suffered the same fate when she was a baby + because of the <unk> of the retinoblastoma tumor-suppressor gene it became possible last january to find out what threat the <unk> baby faced + a test using new genetic <unk> showed that little will <unk> had not inherited a damaged retinoblastoma <unk> gene and therefore faced no more risk than other children of developing the rare cancer + it made our new year says mr. <unk> + this test was the first to predict <unk> whether an individual could expect to develop cancer + equally important the initial discovery of the gene that controls <unk> cell growth made by a boston doctor named <unk> <unk> has opened a field of cancer study which in recent months has exploded + it turns out that studying a <unk> but uncommon tumor made possible some fundamental <unk> about the most basic workings of cancer says samuel <unk> director of the national cancer institute + all this may not be obvious to the public which is concerned about advances in treatment but i am convinced this basic research will begin showing results there soon + to date scientists have <unk> two of these <unk> + dr. <unk> made his retinoblastoma discovery in N + then last spring researchers reported finding a gene called p53 which if <unk> turns healthy colon cells <unk> + soon after that report two other research teams uncovered evidence that the same damaged p53 gene is present in tissue from lung and <unk> cancers + colon lung and <unk> cancers are the most common and <unk> forms of the disease <unk> killing almost N americans a year + right now about a dozen laboratories in the u.s. canada and britain are racing to <unk> other suspected <unk> genes + they have about seven candidates + researchers say the <unk> of tumor-suppressor genes alone or in combination appears crucial to the development of such <unk> as cancer of the brain the skin kidney <unk> and <unk> + there is evidence that if people <unk> defective versions of these genes they are especially prone to cancer perhaps explaining finally why some cancers seem to <unk> certain families + the story of tumor-suppressor genes goes back to the 1970s when a <unk> named alfred g. <unk> jr. proposed that retinoblastoma stemmed from two separate genetic defects + he <unk> that in the eye cancer an <unk> inherited a damaged copy of a gene from one parent and a normal copy from the other + the tumor he suggested developed when the second normal copy also was damaged + but there was no way to prove dr. <unk> 's <unk> theory + back then scientists had no way of <unk> out specific genes but under a <unk> they could see the N <unk> of <unk> in the cells that contain the genes + occasionally gross chromosome damage was visible + dr. <unk> found that some children with the eye cancer had inherited a damaged copy of chromosome no. N from a parent who had had the disease + under a <unk> he could actually see that a bit of chromosome N was missing + he assumed the missing piece contained a gene or genes whose loss had a critical role in setting off the cancer + but he did n't know which gene or genes had disappeared + then a scientific team led by <unk> <unk> webster <unk> then at the university of utah found the answer + the team used a battery of the newly developed gene <unk> <unk> of genetic material that can track a gene 's presence in a cell + by analyzing cells <unk> from eye <unk> they found defects in the second copy of chromosome N in the exact area as in the first copy of the chromosome + the finding <unk> medicine + it was the first time anyone had showed that the loss of both copies of the same gene could lead to the <unk> of a cancer + it was extraordinarily satisfying says dr. <unk> now at fox chase cancer research center in philadelphia + i was convinced that what was true of retinoblastoma would be true for all cancers + it was an <unk> claim + but in baltimore dr. vogelstein a young <unk> <unk> at johns hopkins medical school believed dr. <unk> was right and set out to repeat the <unk> experiment in cells from other cancers + his was one of two research teams in N to report dual chromosome losses for a rare <unk> cancer of the kidney called <unk> 's tumor + dr. vogelstein next turned his attention to colon cancer the second biggest cancer killer in the u.s. after lung cancer + he believed colon cancer might also arise from multiple hits on cancer <unk> genes because it often seems to develop in stages + it often is <unk> by the development of <unk> in the <unk> which in some cases become increasingly malignant in <unk> stages <unk> from less severe to deadly as though a cascade of genetic damage might be <unk> + dr. vogelstein and a <unk> student eric <unk> began months of <unk> and often frustrating probing of the <unk> searching for signs of genetic damage + they began <unk> a confusing variety of genetic <unk> some existing only in benign <unk> others in malignant cells and many in both <unk> and malignant cells + gradually a <unk> picture of cancer development emerged + if both copies of a certain gene were knocked out benign <unk> would develop + if both copies of a second gene were then <unk> the <unk> would progress to <unk> + it was clear that more than one gene had to be damaged for colon cancer to develop + their report galvanized other <unk> <unk> + it was the confirming evidence we all needed that gene losses were critical to the development of a common tumor says ray white at howard hughes medical institute in salt lake city + but dr. vogelstein had yet to <unk> the identity of the gene that if damaged <unk> a colon cell into <unk> <unk> + they focused on chromosome N + for months the johns hopkins researchers using gene <unk> <unk> <unk> down the length of chromosome N looking for the smallest common bit of genetic material lost in all tumor cells + such a piece of dna would probably constitute a gene + when they found it last winter dr. vogelstein was dubious that the search was over + his doubts stemmed from the fact that several years earlier a princeton university researcher arnold levine had found in experiments with mice that a gene called p53 could transform normal cells into <unk> ones + the <unk> dr. vogelstein found was in exactly the same spot as p53 + but mr. levine had said the p53 gene caused cancer by promoting growth <unk> the johns hopkins scientists were looking for a gene that <unk> growth + despite that when the johns hopkins scientists compared the gene they had found in the human cancer cells with the mr. levine 's p53 gene they found the two were identical it turned out that in mr. levine 's cancer studies he had <unk> been <unk> a damaged form of p53 a <unk> gene + the discovery suddenly puts an <unk> gene right in the <unk> of cancer formation says robert <unk> a leader in <unk> research at <unk> institute in cambridge mass + evidence now is emerging that the p53 <unk> gene is involved in other cancers too + researchers in <unk> scotland have found that in N of N <unk> <unk> one copy of chromosome N was <unk> at the spot where gene p53 lies + the scientists say that since <unk> cancer often strikes multiple members of certain families the gene when inherited in a damaged form may <unk> women to the cancer + the p53 gene has just been <unk> in lung cancer + in a report out last week john <unk> and colleagues at the national cancer institute say that about half the cells taken from lung cancer tissue they tested are missing this gene + there also are reports from several labs as yet unpublished of missing p53 genes in tissue taken from kidney brain and skin cancers + at the same time the johns hopkins team and others are rushing to pinpoint other tumor-suppressor genes + dr. vogelstein hopes soon to <unk> one on chromosome N also involved in colon cancer + ray white in utah and walter <unk> a researcher in great britain are close to finding another gene involved with some types of colon cancer thought to be on chromosome N + dr. <unk> believes people who <unk> a defective gene somewhere on one of their two copies of chromosome N are especially prone to lung cancer + recently he and others reported that the retinoblastoma <unk> gene may also be involved in some lung cancers as well as several other more common cancers too + where these <unk> will lead scientists can only speculate + already two major pharmaceutical companies the squibb unit of bristol-myers squibb co. and <unk> <unk> inc. are <unk> with gene <unk> to turn the anticipated cascade of <unk> into <unk> tests and maybe new <unk> + some researchers say new cancer drugs to slow or reverse tumor growth may be based on the <unk> proteins normally produced by the genes + the idea would be to <unk> to patients the <unk> proteins made by healthy versions of the damaged genes + it may even be possible to replace defective genes with healthy versions though no one has come close to doing that so far + in any case says dr. <unk> of the national cancer institute we 're <unk> the discovery of one of the most important steps in the <unk> of cancer + many investors give michael foods about as much chance of getting it together as <unk> <unk> + but now at least there 's a <unk> of hope for the stock + burger king which breaks thousands of fresh eggs each morning is quietly switching over to an alternative egg product made by michael foods + known as easy eggs the product has disappointed investors + when the company this month announced <unk> sales of easy eggs the stock dropped nearly N N + michael wo n't confirm the <unk> of any easy egg customers nor will it say much of anything else + two minneapolis shareholder suits in the past month have accused top officers of making various <unk> statements + these <unk> suits accuse the officers of failing to disclose that easy eggs were unlikely to sell <unk> enough to justify all of michael 's production capacity + but at least burger king has signed on and says that by year end it wo n't be using any shell eggs + the miami fast-food chain owned by grand metropolitan of britain expects to consume roughly N million pounds of <unk> eggs annually + so there is reason to believe that michael 's hopes for a <unk> <unk> egg were n't all <unk> + easy eggs are <unk> in a <unk> process + still caution is <unk> + a company official says michael 's break-even volume on easy eggs is around N million pounds a year apparently well above current shipments and a far cry from what the company once suggested was a <unk> market waiting for such a product + perhaps to <unk> the analysts ' talk of <unk> michael today will take some of the skeptics on a tour of its new <unk> minn. plant + there has been no announcement of the burger king arrangement by either party possibly for fear that mcdonald 's and other fast-food rivals would seize on it in <unk> advertising + but burger king operators <unk> confirm using michael 's product + other institutional users reportedly include <unk> which is moving away from fresh eggs on a <unk> basis + the extent of <unk> 's use is n't known and <unk> officials could n't be reached for comment + michael foods has attracted a good many <unk> the people who sell borrowed shares in a bet that a stock price will drop and allow the return of cheaper shares to the lender + many analysts question management 's credibility + the stock in my opinion is going to go lower not only because of disappointing earnings but because the credibility gap is certainly not closing says l. craig <unk> of <unk> <unk> + mr. <unk> says that at a recent <unk> conference in new york he asked michael 's chief executive officer if the fourth quarter would be down + the ceo richard g. <unk> replied yes but would n't elaborate + the company did n't put out a public announcement + a spokesman said later that mr. <unk> was being conservative in his estimate + but the spokesman added that while michael will earn less than last year 's $ N a share it thinks street estimates of $ N or so are low + analyst robin young of john <unk> & co. minneapolis calls himself the last remaining bull on the stock + he argues that michael foods is <unk> this is a growth company in the packaged food industry a rare breed like finding a white <unk> + earnings are n't keeping pace he says because of heavy investments in the egg technologies and <unk> costs in its potato business + mr. <unk> however believes the company 's egg product wo n't help the bottom line in the short run even though it makes sense it 's more convenient and justifies its price which is higher than shell eggs because of health and <unk> concerns + prospective competition is one problem + last week a closely held new jersey concern <unk> high-grade egg products co. rolled out an <unk> packaged <unk> item called table ready + company president steve <unk> says <unk> will be among his clients as well + michael shares closed at N N yesterday in national over-the-counter trading + says new york-based short seller mark <unk> in my mind this is a $ N stock + michael late yesterday announced a $ N million stock buy-back program + michael which also processes potatoes still relies on <unk> for about a fourth of its sales and nearly half its pretax profit + but dry growing conditions in the red river valley of minnesota and north <unk> are pushing spot prices of potatoes beyond what michael contracted to pay last spring + company lawyers recently sent letters to growers saying that michael would take very seriously any effort to <unk> its <unk> potatoes to other outlets + still analysts believe that profit margins in the potato business will be down again this year + pierre peladeau a canadian newspaper publisher <unk> in the u.s. figures to become a big player in north american printing and his ambitions do n't end there + yesterday quebecor inc. a montreal printing publishing and forest-products company <unk> by mr. peladeau agreed to acquire maxwell communication corp. 's u.s. printing subsidiary maxwell graphics inc. for $ N million in cash and securities + the purchase expected to be completed by year end will make quebecor the second-largest commercial printer in north america behind only <unk> <unk> & sons co. chicago + the printing customers that quebecor will gain through maxwell graphics include the sunday newspaper supplement parade time sports illustrated and tv guide + but the transaction is just mr. peladeau 's latest step in a larger design to build quebecor through acquisitions into an integrated paper publishing and printing concern with a reach throughout north america + he already has achieved <unk> integration on a limited scale quebecor can put a weekly newspaper on almost any quebec <unk> without using outside help from <unk> down the tree to making the newsprint to <unk> it up onto the <unk> + analysts say quebecor 's purchase is part of a trend toward consolidation in the north american printing industry + along with <unk> says <unk> <unk> an analyst with <unk> thomson <unk> inc. in montreal quebecor has positioned itself as one of the two key players + he adds i think this is a great strategic move for quebecor + they are buying an operation that is running well + mr. peladeau says he is n't trying to catch up to <unk> which has annual sales of over $ N billion + size does n't matter mr. peladeau says + what counts is the bottom line + some of mr. peladeau 's ventures including an earlier push into the u.s. market have n't paid off on the bottom line + quebecor started the philadelphia journal a daily tabloid in N and closed it three years later + the venture cost quebecor $ N million mr. peladeau says + more recently some former quebecor executives started their own printing company specializing in printing and distributing advertising <unk> + quebecor still <unk> in the quebec <unk> market while mr. peladeau 's former employees are expanding across canada + mr. peladeau took his first big gamble N years ago when he took advantage of a strike at la <unk> then montreal 's dominant <unk> newspaper to launch the journal de montreal + the tabloid 's circulation soared to N but plunged to under N when the la <unk> strike ended + still mr. peladeau stuck with the venture + now the journal flush with ads and <unk> profitable is even with la <unk> in weekend circulation and <unk> it N to N every <unk> + mr. peladeau has never made any <unk> for publishing the tabloid a <unk> mix of crime and sports + i 've read <unk> he answers critics + it 's tabloid news from a to z + quebecor also publishes a second tabloid in montreal the struggling <unk> montreal daily news <unk> in quebec city and <unk> manitoba and dozens of <unk> covering most of quebec + a series of recent acquisitions made it the dominant magazine publisher in quebec + after a recent merger it is also the only <unk> distributor of magazines and newspapers in quebec + finally with maxwell communication the company controls N N of <unk> inc. a quebec city pulp and paper concern + in yesterday 's accord quebecor agreed to pay $ N million in cash for maxwell graphics and to give maxwell communication a N N stake valued at $ N million in quebecor 's new printing subsidiary + the new as yet <unk> subsidiary will combine quebecor 's existing printing unit and maxwell graphics + it will have N plants from coast to coast and $ N billion in annual sales + quebecor will own N N of the new subsidiary + <unk> de <unk> <unk> placement the quebec government <unk> agency will pay $ N million for the remaining N N stake in the printing operation + <unk> peladeau the founder 's son and the executive in charge of the acquisition says quebecor has n't decided how it will finance its share of the purchase but he says it most likely will use debt + the maxwell deal is quebecor 's second big printing acquisition in just over a year + last october quebecor bought N canadian printing plants from <unk> inc. a montreal telecommunications manufacturing energy and real estate company + that purchase doubled quebecor 's annual printing revenue to $ N million + maxwell 's sale of its u.s. printing unit was expected the last major business to be <unk> of in a major <unk> of assets + according to its most recent annual report covering the N months ended march N maxwell communication bought $ N billion in assets including macmillan inc. and official airlines <unk> and sold $ N billion in <unk> businesses + now maxwell founder robert maxwell says he has an appetite for new acquisitions in the u.s. adding that he could spend a good deal more than $ N billion on another u.s. purchase + in london trading yesterday maxwell communication shares rose nine pence to N pence $ N + in montreal quebecor 's multiple voting class a stock closed at c$ N us$ N down N canadian cents + quebecor class b stock closed at c$ N up N canadian cents + craig <unk> in london contributed to this article + <unk> searle & co. said the food and drug administration approved the sale of <unk> a <unk> drug developed by a joint venture between searle and a french concern + searle a unit of monsanto co. said the <unk> <unk> drug <unk> is the first product to reach the market through <unk> pharmaceuticals the u.s. company jointly owned by searle and <unk> a french pharmaceutical concern owned by france 's <unk> s.a + the u.s. equal employment opportunity commission sued new york state for age discrimination against appointed state judges + the suit filed in federal court in manhattan charges that new york 's mandatory retirement age of N violates federal law + separately the commission intervened in a connecticut state judge 's <unk> suit in federal court in new haven + the commission 's filing in that case challenges connecticut 's mandatory retirement age of N for appointed judges + the new york suit was filed on behalf of justice <unk> rubin whose appointment to the state appellate division expires at year end and all other judges hurt by the alleged age discrimination + the suit assigned to federal judge <unk> wood seeks a permanent injunction back pay for judges who have been forced to retire <unk> of retired judges and other <unk> relief necessary to <unk> the effects of new york 's unlawful employment practices + justice rubin a state judge since N said the <unk> age <unk> the court system because it <unk> the state of experienced judges still capable of serving on the bench + the issue is n't age age is just a number + the issue is one of a judge 's experience his <unk> and his physical ability to serve on the bench justice rubin said + i 've had no problems performing my duties and responsibilities + because justice rubin turned N on may N he is n't eligible to be <unk> to the bench at the end of the year + the suit 's impact on new york may be narrow however + most new york judges are elected and the federal <unk> law does n't apply to elected officials said james l. lee regional attorney for the <unk> in new york + under new york law elected judges must retire at age N but then can be appointed to two-year terms until they reach N + a spokeswoman for the state 's office of court administration declined to comment on the suit + but she said the state currently has N appointed judges who are over N + in connecticut however most state judges are appointed by the governor and approved by the state legislature + the parties in the connecticut case have agreed to stay proceedings pending the appeal of another <unk> <unk> case against vermont + in the vermont case a federal judge ruled that the state 's mandatory age of N for appointed judges was illegal vermont 's appeal of that decision is pending before the u.s. second circuit court of appeals in manhattan + <unk> <unk> connecticut 's chief court administrator declined to comment on the suit and the <unk> 's intervention + he said the state has N appointed judges and N trial <unk> who are former judges over age N and serve a restricted role on the bench + organized crime strike forces likely to be abolished next month + u.s. attorney general dick thornburgh 's plan to <unk> the N regional <unk> strike forces is expected to go into effect next month despite the opposition of democratic congressional leaders and lawyers in the special units + the units are <unk> from u.s. attorneys ' offices and focus exclusively on <unk> <unk> cases + in february mr. thornburgh announced his plan to abolish the units + he says the <unk> lawyers will work more efficiently under the supervision of u.s. attorneys + mr. thornburgh will be free to <unk> the strike forces after congress approves a $ N million <unk> for federal law-enforcement and <unk> agencies according to david runkel a justice department spokesman + the bill is expected to pass in congress next month + congress temporarily halted mr. thornburgh 's effort with an <unk> resolution that prohibited him from using <unk> funds to implement his plan + opponents say mr. thornburgh 's plan will <unk> break up longtime tightly <unk> <unk> units that have successfully prosecuted major <unk> figures + they predict that <unk> activity will increase once the units are <unk> and their responsibilities transferred to u.s. attorneys ' offices + some former <unk> personnel say the units have already begun to break up + the eastern district unit in brooklyn n.y. lost seven of its N attorneys this year partly because the lawyers were troubled by the proposed reorganization says <unk> a. <unk> who left the strike force to join morrison cohen singer & <unk> a new york law firm + those who have left have expressed an opinion that the strike force should continue ms. <unk> says + but mr. runkel contends there has been no exodus of <unk> lawyers + he says N lawyers have left and N have been hired since mr. thornburgh announced his plan + at the time the plan was announced there were N lawyers + some congressional leaders intend to continue to fight for independent strike forces + a spokesman for sen. edward m. kennedy d. mass says mr. thornburgh would be required to <unk> the units next year if an proposed omnibus crime bill is passed + among other things the bill calls for a reorganization of the justice department + the senate is expected to consider the bill shortly says the senator 's spokesman + mr. runkel says he doubts mr. kennedy can <unk> enough congressional support to <unk> the justice department + we will vigorously oppose the bill he says + i do n't think the reorganization is going to happen + <unk> & <unk> <unk> lawyers from <unk> firm + the <unk> new york firm will bring in at least N partners and a not yet determined number of associates from <unk> & <unk> which will <unk> dec. N + <unk> with N lawyers has lost several partners during the past year + some <unk> lawyers wo n't be invited to join <unk> & <unk> according to partners at both firms + <unk> & <unk> managing partner <unk> f. <unk> said the <unk> <unk> will enhance the firm 's corporate and litigation departments + short <unk> not welcome in texas court + <unk> hancock a male county court judge in houston refused to let a woman plead guilty to a <unk> charge because her <unk> stopped three inches above her <unk> + the woman appeared in court thursday to enter her plea but when she started to approach the bench she was stopped by judge hancock + he told the woman 's lawyer victor <unk> that the short <unk> was inappropriate for a court appearance + despite mr. <unk> 's protests the judge <unk> her case for nov. N + kelly <unk> an assistant district attorney who was in the courtroom disputed suggestions the action was <unk> saying she had seen judge hancock turn away male defendants dressed in <unk> tank tops or muscle shirts many times + judge hancock did n't return phone calls + warner communications inc. and sony corp. resumed settlement talks on their legal battle over hollywood producers peter guber and jon peters but continued to level strong accusations at each other in legal documents + warner has filed a $ N billion breach of contract suit in los angeles superior court against sony and the guber-peters duo who in turn are <unk> warner for trying to interfere in sony 's acquisition of columbia pictures entertainment inc. and guber peters entertainment co. in two transactions valued at over $ N billion + although settlement talks had been dropped attorneys for the two sides apparently began talking again yesterday in an attempt to settle the matter before thursday when a judge is expected to rule on warner 's request for an injunction that would block the two producers from taking over the management of columbia + yesterday in documents filed in connection with that case warner accused sony officials of <unk> claiming that they never read the five-year contract requiring the two producers to make movies exclusively for columbia citing securities and exchange commission filings made by sony that described the contracts + warner was referring to documents filed last week in which sony corp. of america vice chairman michael <unk> and walter yetnikoff president of its cbs records unit said they had taken mr. guber and mr. peters at their word when the producers told them that getting out of the contract would be no problem because of a previous oral agreement + wayne smith an attorney at <unk> dunn & <unk> in los angeles representing sony said the sony executives had n't seen the contract because it was n't relevant once guber and peters told them warner would let them terminate it at any time + mr. smith said statements about the contract made in sec filings were made by attorneys who did have access to the contracts but who were n't part of the negotiations between sony and the duo + warner executives also filed new sworn affidavits denying claims by messrs. guber and peters that the two sides had an oral agreement that enabled the producers to terminate their contract with warner should the opportunity to run a major studio come up + but mr. smith said sony intends to prove that the oral agreement did in fact exist and that even the existing written contract does n't preclude the producers from taking executive posts at another studio + warner described as nonsense yesterday sony 's <unk> in prior court filings that mr. guber and mr. peters could in theory run columbia while still <unk> their contract to produce movies for warner + such a dual role would be <unk> and <unk> warner said adding that concept is as silly as suggesting that the head coach of the los angeles <unk> could simultaneously be general manager of the san francisco giants + warner which is in the process of being acquired by new york-based time warner inc. also said it paid the two producers a fixed annual salary of $ N million + dataproducts inc. said it filed a lawsuit in delaware chancery court to block a tender offer by dpc acquisition partners alleging that the hostile offer violates a standstill agreement between the two concerns + dpc an investor group led by new york-based <unk> investment associates had itself filed a suit in state court in los angeles seeking to <unk> the agreement + earlier this year dataproducts had rejected a $ N a share offer from dpc saying it was n't adequately financed + dpc last week launched a new $ <unk> offer for the <unk> hills calif.-based computer printer maker + dpc said it could n't comment on the suit + boeing co. 's third-quarter profit leaped N N but wall street 's attention was focused on the picket line not the bottom line + in fact the earnings report <unk> as representatives of the world 's no. N jet maker and the striking machinists union came back to the negotiating table for their first meeting in two weeks + doug hammond the federal mediator in seattle where boeing is based said the parties will continue to sit down daily until a new settlement proposal emerges or the talks break off again + despite the progress boeing indicated that the work <unk> now in its <unk> day will have a serious adverse impact on the current quarter + for the third quarter net rose to $ N million or $ N a share from $ N million or N cents a share + sales climbed N N to $ N billion from $ N billion as the company capitalized on the <unk> global demand for commercial <unk> + because it 's impossible to gauge how long the <unk> by N machinists rank and file will last the precise impact on boeing 's sales earnings cash flow and short-term investment position could n't be determined + the investment community however strongly believes that the strike will be settled before there is any lasting effect on either boeing or its work force + the company 's total firm backlog of unfilled orders at sept. N stood at a mighty $ N billion compared with $ N billion at the end of + although the company could see fourth-quarter revenue shrink by nearly $ N billion if it is n't able to deliver any more planes this year those dollars actually would just be deferred until N + and the company is certain to get out some aircraft with just supervisors and other <unk> employees on hand + before the union rejected the company 's offer and the strike was launched with the <unk> shift of oct. N boeing had been counting on turning N aircraft out the door in the present period + that included N of the company 's N jumbo jets its most successful product + it 's not a pretty picture said david smith an analyst with raymond james & associates + but it would just mean a great first and second quarter next year + <unk> <unk> of merrill lynch capital markets added you do n't want to minimize this and say nobody is looking at it + but the strike has n't gone on long enough for boeing to lose business in any real sense + that 's the primary reason the company 's share price has held up so well when in mr. smith 's words most companies would have unraveled by now + in new york stock exchange composite trading boeing closed yesterday at $ N a share off a <unk> N cents + still boeing went through its normal <unk> <unk> and played up the downside + in a statement chairman frank <unk> asserted that the company faces significant challenges and risks on both its commercial and government contracts + for instance he noted that spending on pentagon programs is shrinking and boeing is either the prime contractor or a major supplier on many important military projects including the b-2 <unk> bomber the <unk> <unk> <unk> aircraft and the air force 's <unk> tactical fighter + because of cost overruns on fixed-price military work mr. <unk> said the company 's defense business will record a significant loss in N + moreover mr. <unk> added <unk> increases that have been implemented on the N N N and N programs have resulted in serious work force <unk> problems + suppliers and <unk> are experiencing heightened pressure to support delivery schedules + and of course there 's the <unk> labor situation + besides the machinists pact accords representing N of the company 's engineering and technical employees in the <unk> sound and wichita kan. areas expire in early december + also a contract with the united auto workers at the company 's helicopter plant in philadelphia expired oct. N + this contract covering about N hourly production and maintenance workers is being extended on a day-to-day basis + the machinists rejected a proposal featuring a N N base wage increase over the life of the three-year contract plus bonuses of N N the first year and N N the second + on top of that boeing would make cost-of-living adjustments projected to be N N for each year of the contract + the union though has called the offer <unk> + the company reiterated yesterday that it 's willing to <unk> the package but not add to the substance of it + for the nine months boeing 's net increased N N to $ N million or $ N a share from $ N million or $ N a share + sales soared N N to $ N billion from $ N billion + in a separate matter the justice department yesterday said boeing agreed to pay the government $ N million to settle claims that the company provided inaccurate cost information to the air force while negotiating contracts to replace the aluminum <unk> on the <unk> tanker aircraft + the settlement <unk> to four contracts negotiated from N to N prosecutors said + they added that the settlement is the culmination of a N 1\/2-year investigation into the company 's aluminum pricing practices in connection with <unk> + a boeing spokesman responded all along the company has said there was no grounds for criminal prosecution + that was <unk> out by the justice department 's decision to settle the case + foothills pipe lines ltd. filed an application with canadian regulators to build a N billion canadian dollar us$ N billion pipeline to transport natural gas from canada 's arctic to u.s. markets beginning in + the application by foothills owned by calgary-based <unk> corp. of alberta and <unk> energy inc. of vancouver canada is expected to kick off what could be a contentious battle for the right to transport vast quantities of gas to southern markets from <unk> fields in canada 's mackenzie river delta + this is a <unk> strike by foothills said rick <unk> natural gas manager of the calgary-based independent petroleum association of canada an industry group + foothills wants to make it clear to other pipeline companies that it 's on first <unk> as <unk> gas from the arctic to southern markets mr. <unk> said + at least two rival applications are expected to emerge in coming months including one from transcanada pipelines ltd. canada 's largest natural gas pipeline operator + another is expected from a consortium of oil and gas producers who won conditional approval this month from canada 's national energy board to export about N trillion cubic feet of mackenzie delta gas to the u.s. starting in N + the producers include shell canada ltd. a unit of royal <unk> group esso resources canada ltd. a unit of imperial oil ltd. which is <unk> by exxon corp. and gulf canada resources ltd. a unit of olympia & york developments ltd + the national energy board approval of the exports just <unk> the starting flag for the next stage the rush to build facilities to transport the gas said bill <unk> an analyst with brady & <unk> a washington d.c. law firm + foothills ' main rival to build a mackenzie delta pipeline is likely to be transcanada pipelines + the toronto-based company together with tenneco inc. of houston has had an incomplete proposal filed with canadian regulators since N that it is now <unk> + like foothills transcanada 's <unk> gas consortium plans to build a pipeline directly south from the mackenzie river delta in canada 's western arctic with an initial capacity to transport N billion cubic feet of gas daily + industry sources said they expect a fierce battle to emerge between transcanada which has a monopoly on canadian gas transportation east of alberta and <unk> and <unk> which control the pipelines within and running west of alberta respectively + this is virgin territory <unk> and it 's going to be nasty said one <unk> who asked not to be named + neither is going to back down easily + transcanada declined to comment on the foothills application + but last week gerald <unk> president and chief executive officer of transcanada said the company intends to be a party to any transportation system that goes up there and that it would consider joint ventures with other players to ensure it has a role + a number of issues still need to be resolved before canadian regulators give any project the final <unk> + first the price of natural gas will have to almost double + kent <unk> president of foothills said the company believes the project would be viable if gas prices reach us$ N a thousand cubic feet by N in current dollars up from a current spot price of about us$ N + mr. <unk> 's us$ N estimate is somewhat below the $ N floor price that calgary-based consulting firm paul <unk> & co. recently said would be needed for mackenzie delta gas producers to see a return on their investment + u.s. gas buyers must also decide whether they want to enter firm contracts for mackenzie delta gas or develop alaskan reserves in the <unk> bay area first a project that has been on hold for more than a decade + robert <unk> chairman and chief executive of foothills said it 's too early to say whether alaskan or mackenzie delta gas would flow to market first + but foothills said it plans to seek regulatory approval to build an alternative line the alaska natural gas transportation system further north toward alaska + if that option is favored by gas buyers and regulators foothills said it would build another smaller pipeline connecting mackenzie delta reserves to the alaska <unk> + it 's also likely that regulators will try to forge some kind of consensus between the would-be pipeline builders before undertaking any hearings into rival projects + douglas <unk> vice president of shell canada noted that producers would prefer to avoid hearings into competing proposals that would <unk> the regulatory review process and <unk> down development + <unk> pipe line co. an oil pipeline operator rumored to be <unk> a gas pipeline proposal of its own said that is n't in the cards + instead richard <unk> president and chief executive of <unk> 's calgary-based parent <unk> energy inc. said the company would prefer to work with other interested parties on a joint proposal + as for foothills ' <unk> bid mr. <unk> said if they think it gives them some kind of priority position well that 's their strategy + the federal reserve board said it is delaying approval of first union corp. 's proposed $ N million acquisition of florida national banks of florida inc. pending the outcome of an examination into first union 's lending practices in low-income neighborhoods + the decision reflects the fed 's tougher stance on <unk> the community reinvestment act a federal law passed in N to help low-income residents obtain loans + in recent years unions and community groups have won big commitments from banks to make <unk> loans in certain neighborhoods by threatening to hold up proposed acquisitions with protests to the fed about reinvestment act compliance + few <unk> however have actually delayed or <unk> mergers + the current dispute involves allegations that charlotte <unk> first union has n't lived up to its responsibilities under the reinvestment act + during the summer legal services corp. a florida legal aid group filed a petition with the fed on behalf of residents in four florida counties + the petition challenged first union 's lending record in the state saying that the bank-holding company had shut itself off from contact with the low-income community and is <unk> almost every black neighborhood that it serves in the state + in deferring action on the merger the fed said the board does not believe that there is sufficient information in the record at this time to allow it to reach a final conclusion on first union 's record of helping to meet the credit needs of the communities it serves in florida and north carolina including low to <unk> neighborhoods in those communities + the fed said the comptroller of the currency is expected to begin a community reinvestment act examination of first union 's florida and north carolina banking units in the next two weeks + first union with assets of about $ N billion said it was disappointed by the delay but said it would cooperate with regulatory authorities + the bank added that it believes the review will demonstrate that first union is in compliance with the requirements of the community reinvestment act + the company has already missed its initial oct. N target date for completing the merger + it said yesterday it still expects to close the acquisition later this year or early in N + florida national if acquired would almost double first union 's banking franchise in florida to $ N billion in assets + that would make it the second-largest bank after barnett banks inc. in a state widely considered to be the most lucrative banking market in the country + in new york stock exchange composite trading yesterday first union shares rose N cents to $ N + florida national stock closed unchanged at $ N in national over-the-counter trading + earlier this year the fed denied an application by continental bank corp. to purchase grand <unk> state bank in <unk> ariz. on grounds that continental had n't fully <unk> with the community reinvestment act + at the time the fed said the <unk> the first ever on such grounds signaled the agency 's new emphasis on the community reinvestment act + eastern airlines ' creditors committee backed off a move to come up with its own alternative proposals to the carrier 's bankruptcy reorganization plans according to sources familiar with the committee + in a meeting in new york yesterday the committee put on hold instructions it gave two weeks ago to its experts to explore other options for eastern 's future the sources said + the consultants had been working to finish a report this week + that means eastern a unit of texas air corp. of houston can go forward with its pitch for creditor approval as early as today when it is expected to deliver a revised reorganization plan to the committee + the committee intends to meet next week to make a recommendation on the new plan + in another development yesterday creditors were told that $ N million they had expected to become available for <unk> a reorganization may not <unk> according to one source + texas air has run into difficulty <unk> about $ N million of debt securities because of problems in the junk bond market the person said + and plans to raise another $ N million through changes to an insurance policy have hit a <unk> the source said + an eastern spokesman said the $ N million will have no effect <unk> on the asset structure of eastern 's plan + <unk> million in the total scheme of things is not that significant + it is unclear what caused the creditors to do an <unk> on exploring alternatives to eastern 's new reorganization plan + however since eastern first filed for chapter N protection march N it has consistently promised to pay creditors N cents on the dollar + because the carrier is still <unk> to do that some committee members successfully argued that there 's little reason yet to explore a different plan according to one person familiar with the creditors ' position + earlier this month the accounting firm of ernst & young and the securities firm of goldman sachs & co. the experts hired by the creditors contended that eastern would have difficulty meeting earnings targets the airline was projecting + ernst & young said eastern 's plan would miss projections by $ N million + goldman said eastern would miss the same mark by at least $ N million + the consultants maintained eastern would n't generate the cash it needs and would have to issue new debt to meet its targets under the plan + eastern at the time disputed those <unk> and called the experts ' report completely off base + yesterday joel <unk> an attorney for eastern 's creditors committee declined to comment on whether the experts had ever been instructed to look at other choices and whether they now were asked not to + he said only that the committee has not yet taken any position on eastern 's reorganization plan and that the two sides were still negotiating + in every case people would like to see a <unk> plan he said + eastern and its creditors agreed in july on a reorganization plan that called for the carrier to sell off $ N billion in assets and to emerge from chapter N status in late N at two-thirds its former size + eastern eventually decided not to sell off a major chunk its south american routes which were valued at $ N million + such a change meant the reorganization plan the creditors had agreed on was no longer valid and the two sides had to begin negotiating again + eastern has publicly stated it is exceeding its goals for getting back into operation and has predicted it would emerge from chapter N proceedings early next year operating more flights than it originally had scheduled + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + new york city + $ N million of general obligation bonds fiscal N series c and d including $ N million of tax-exempt bonds and $ N million of taxable bonds tentatively priced by a goldman sachs & co. group + yields for tax-exempt bonds range from N N N in N to N N in N + yields for taxable bonds range from N N N in N to N N in N and N + the bonds are all rated single-a by moody 's investors service inc + the underwriters expect a <unk> rating from standard & poor 's corp. which has the issue under review + collateralized mortgage securities corp. + $ N million of remic mortgage securities offered in N classes by first boston corp + the offering series N is by a company established by first boston for issuing remics and other derivative mortgage securities + it is backed by government national mortgage association N N N securities with a weighted average remaining term to maturity of N years and being offered at market prices + beneficial corp. + $ N million of securities backed by home-equity loans through merrill lynch capital markets + the offering with an expected average life of N years will float monthly at N basis points above the rate on an index of 30-day <unk> commercial paper which now yields about N N + the issue has an expected final maturity date of N + the offering is rated triple-a by moody 's and s&p based on the quality of the underlying home equity loans and a letter of credit covering N N of the deal from union bank of switzerland + the offering is being made through <unk> home equity loan asset-backed certificates series N + rochester community savings bank + $ N million of N N certificates backed by automobile loans priced to yield N N via first boston corp + the issue through <unk> <unk> <unk> trust was priced at a yield spread of N basis points above the treasury N N N note due july N + the offering has an expected average life of N years and a final maturity date of may N N + the issue is rated triple-a by moody 's based on the quality of the underlying auto loans and a letter of credit covering N N of the deal from credit suisse + south australian government finance authority agency + N million australian dollars of zero-coupon eurobonds due dec. N N priced at N to yield N N less fees via <unk> bank ltd + guaranteed by the south australian treasury + fees N N + government insurance office of new south <unk> agency + a$ N million of N N N eurobonds due dec. N N priced at N to yield N less fees via <unk> banking corp + fees N N + swedish export credit corp sweden + N million swiss francs of N N N privately placed notes due sept. N N priced at N N to yield N N via citicorp investment bank switzerland + call from sept. N N at N N declining by N point a year to to par + fees N N + west german insurance giant allianz ag entered the takeover battle between france 's cie financiere de paribas and cie. de navigation mixte + allianz said it won french government approval to buy as much as one-third of navigation mixte a diversified financial transport and food holding company + the move comes a week after paribas announced that it was preparing to bid for N N control of navigation mixte + <unk> allianz 's brief <unk> statement said it is acting to protect its own interests as a shareholder of navigation mixte + that would be a blow to both paribas and navigation mixte + each had claimed allianz europe 's largest insurance company as a <unk> ally + the allianz statement also reinforced the belief that the takeover battle could be a long one + it led to broad market speculation that paribas now will <unk> its bid which is expected to be formally launched later this week after approval from french government regulators + allianz 's entry reflects the increasing eagerness of west german companies looking ahead to the reduction in european community internal barriers in N to get involved in what until now were considered internal french affairs + deutsche bank dresdner bank and commerzbank all also have expressed eagerness to expand in france before N + dresdner bank this month moved to acquire banque <unk> des <unk> a small french merchant bank that deutsche bank had looked at and passed over + commerzbank had hoped to buy a stake in credit lyonnais until the <unk> returned to government last year and canceled plans to <unk> the large french bank + deutsche bank has actively sought a french acquisition for at least two years + lately analysts say deutsche bank has shocked some in the french financial community by indicating it wants a strong bank with a large number of branches + we are still looking said a deutsche bank spokesman + the banks we think would fit into our concept are either government-owned or not for sale though deutsche bank would be able to pay a good price + while allianz officials were n't willing to comment in any detail on their plans they said allianz currently holds between N N and N N of navigation mixte an apparent increase from the N N stake that navigation mixte officials had earlier announced + paris market sources said they believed allianz was buying yesterday morning and navigation mixte moved up N francs $ N to close at N francs in heavy trading + it was the first day of trading following the suspension of navigation mixte shares last monday when paribas announced its plan to pay N francs for each navigation mixte share + allianz also holds a N N stake in navigation mixte 's insurance subsidiary one of france 's largest insurance groups which it bought for about N billion francs just before paribas launched its bid + navigation mixte holds the remaining N N + allianz said in its statement that it was acting to protect that interest which ties it to navigation mixte as a partner + allianz 's statement stressed the company 's previously announced position that paribas 's offer price is too low + allianz also suggested without saying so directly that it regrets that paribas is n't bidding for all of navigation mixte 's shares + the problem here analysts say is that if paribas wins its N N remaining navigation mixte shares will fall in value + that <unk> many current holders such as allianz which could n't be sure of selling all their shares if they tendered to paribas + the allianz statement led to speculation that allianz eventually could sell to paribas + that would be bad news for navigation mixte 's current management which was counting on allianz to help fend off paribas + allianz did n't say whom if anyone it will support + it said simply that it will boost its navigation mixte stake as it sees fit over the coming days to protect itself as long as it has french regulatory officials ' approval + paribas currently intends to offer N francs a share for navigation mixte shares that receive full dividends this year + it is to offer N francs for shares created on july N which receive partial dividends + alternatively it would offer to swap three paribas shares for one navigation mixte share + paribas already holds about N N of navigation mixte and the acquisition of the additional N N would cost it about N billion francs under its current bid + the bid values navigation mixte at around N billion francs depending on how many holders of navigation mixte warrants exchange them for shares before the bid expires + penn central corp. cincinnati said it agreed in principle to acquire noranda inc. 's carol cable co. unit for $ N million + the company said carol cable based in <unk> r.i. is a leading supplier of electrical and electronic wire and cable for the distributor retail and original equipment manufacturer markets + carol cable which operates N manufacturing plants had operating profit of $ N million on sales of $ N million for the first six months of this year and operating profit of $ N million on sales of $ N million for all of N + the maker of telecommunications and defense equipment said carol cable 's portfolio and market focus would <unk> the company 's current wire and cable businesses + the plan is subject to a satisfactory due <unk> investigation of carol cable by penn central a definitive agreement and regulatory approvals + fletcher challenge ltd. said its <unk> unit agreed to acquire certain alberta oil and gas interests from amoco corp. 's canadian unit for about N million canadian dollars us$ N million + fletcher challenge a big new <unk> forest products concern with <unk> operations in canada said the assets include stakes in four natural gas fields and one oil field near <unk> alberta plus gas processing facilities and about N acres of undeveloped land + the proposed purchase requires approval from investment canada which monitors large foreign investments in canada + amoco canada petroleum co. which operates the major properties included in the asset package said the sale is part of a plan to streamline its assets + <unk> a new <unk> oil and gas producer said the planned purchase would be its first oil and gas acquisition outside its home country and would form the basis for a new <unk> exploration and production unit in canada + miniscribe corp. <unk> colo. said it introduced a <unk> high <unk> hard disk drive that it hopes will prove popular with makers of <unk> laptop and portable computers + the troubled disk drive maker aims with the new N <unk> disks to revive its reputation and sales growth + miniscribe said the disk drives have more memory capacity than other disks that size + miniscribe said it expects to begin full volume production of the drives in the u.s. and singapore in the first quarter next year + a drive with N <unk> of capacity is scheduled for release during the third quarter of N + miniscribe has been on the rocks since it disclosed early this year that its earnings reports for N were n't accurate + after an internal investigation the company found that senior officials used a variety of schemes to <unk> sales gains including counting shipments of bricks and defective drives as sales + the new york times co. said it reached a settlement with independent home delivery dealers in the metropolitan new york area that will free the newspaper to expand home delivery circulation + the settlement stemmed from a lawsuit the dealers filed in N when the times began its own competing direct delivery service + the pact calls for the times to pay dealers $ N million over six years as well as other payments in the form of subsidies over three years based on the number of new customers started by the dealers and on pricing structures the times said + the amount of the settlement will be taken as a charge against earnings in the fourth quarter + the settlement which involves most of the N independent newspaper dealers in the new york area will allow the times to freely operate its own direct home delivery system + home delivery is the fastest growing segment of the times 's N million daily circulation + currently about N N of home delivery subscribers in the new york area receive the paper directly from the times + mercury savings & loan association <unk> beach calif. reported a third-quarter loss of $ N million or N cents a share compared with net income of $ N million or N cents a share in the year-earlier quarter + mercury attributed the loss to rapid prepayments of loans and costs incurred in refinancing many house loans this past spring and summer when interest rates dipped + the thrift hired an investment banker earlier this month to advise it regarding a possible sale or merger + mercury also is shrinking itself part of its plan to change its emphasis from buying mortgage loans from mortgage brokers to making loans directly + such a focus is more profitable more efficient and gives us a greater sense of control said william a. <unk> mercury 's senior executive vice president + as of sept. N mercury 's assets were $ N billion down from $ N billion a year ago + for the nine months mercury posted a loss of $ N million or N cents share against net income of $ N million or N cents share a year earlier + mercury shares closed yesterday at $ N up N cents in new york stock exchange composite trading + bancroft convertible fund inc. new york likely will reject a renewed offer from florida investor robert i. green to buy bancroft for $ N a share + <unk> levine bancroft secretary and treasurer said the closed-end fund 's directors will consider mr. green 's offer in a couple of weeks at a regular meeting + he has n't added anything mr. levine said predicting the board will again reject mr. green 's proposal + in a securities and exchange commission filing mr. green said he had boosted his holdings in bancroft common to N N from N N and renewed an offer he made in march to acquire the fund + mr. levine noted that bancroft 's shares have been trading at or above mr. green 's offering price for the last several months + he said bancroft attorneys are scheduled to meet with mr. green 's attorneys in delaware chancery court at the end of this week to respond to the investor 's request for company records for the past five years + mr. green could n't be reached + giant group said a federal court in delaware has denied a motion by rally 's inc. seeking to block a group led by giant chairman burt sugarman from acquiring more of the company 's shares + rally 's a fast-food chain based in louisville ky. is <unk> that mr. sugarman and two other company directors failed to disclose to the securities and exchange commission that they intended to acquire a big rally stake + mr. sugarman has in turn contended that the other major shareholder group whose interests are represented by three other directors connected to trusts in the name of the children of the company 's founder james patterson has ties to a competing fast food chain wendy 's international inc + the company last week assembled a <unk> committee of directors aligned with neither side to analyze the situation + each group controls more than N N of rally 's stock + the company just went public earlier this month + rally 's had no comment but was expected to make an announcement this morning about the situation + singer <unk> midler won a $ N federal court jury verdict against young & rubicam in a case that threatens a popular advertising industry practice of using <unk> performers to <unk> products + the decision in los angeles federal court stems from a N mercury <unk> tv ad that young & rubicam worked up for ford motor co + the ad agency had approached ms. midler about appearing but she declined citing a longstanding policy of refusing advertising work + the agency then turned to a former backup singer for ms. midler who appeared in the ad and <unk> what was generally considered a more than credible <unk> of ms. midler 's N hit song do you <unk> dance + the appeals court held when a distinctive voice of a professional singer is widely known and is deliberately <unk> in order to sell a product the sellers have appropriated what is not theirs + the judge in the jury trial said there was insufficient evidence to hold ford liable in the case + in a statement young & rubicam called the award unfortunate but <unk> + peter <unk> a los angeles lawyer for ms. midler said we believe that the verdict <unk> her position and our position that advertisers and advertising agencies can not with <unk> <unk> the voices of well-known performers + that is a property right that belongs to the performer + the award although far less than the $ N million including punitive damages that ms. midler sought is likely to force madison avenue to further <unk> how they use famous <unk> in ads + last year 's appeals court decision for instance spawned several suits reportedly including a recent action by the <unk> of singer bobby <unk> against mcdonald 's corp. over its mac tonight tv commercials a rough <unk> of mr. <unk> 's mack the <unk> trademark + the <unk> decision last year was particularly surprising because the same court had dismissed a similar case in N involving singer nancy <unk> and a tire ad also a young & rubicam product + ms. <unk> sued over the use of her these <unk> are made for <unk> song in the ad + at that time the court held that such a claim would interfere with federal copyright law which has always <unk> down on the unauthorized copying of <unk> and musical <unk> but never actual performances + one thing that is a little <unk> is that you had three old men on the court of appeals in california coming up with a statement that nancy <unk> is not distinctive but that <unk> midler is + i am not sure that judges many of whom i like very much are proper <unk> for making <unk> about pop <unk> said richard <unk> a new york advertising lawyer + nonetheless mr. <unk> said that the latest decisions are having a <unk> effect + it has made people think twice about how they use music and is forcing them to be more <unk> about doing a particular <unk> of a song in its most famous form he said + <unk> <unk> contributed to this article + james river corp. richmond va. said it acquired the tissue operations of <unk> n.v. of the netherlands for about $ N million + the dutch unit known as <unk> <unk> is a leading maker of consumer and <unk> tissue products for the <unk> region + in addition the acquisition includes production assets of <unk> <unk> a maker of household tissue products for the u.k. and ireland + the combined operations had N revenue of about $ N million + james river a maker of pulp paper and plastic products already has interests in tissue businesses in france spain italy and turkey + the company said it plans to form european ventures with italian and finnish companies + the <unk> operations would become part of those ventures + vitro s.a. of <unk> mexico said its <unk> corp. subsidiary has entered into definitive loan agreements in connection with vitro 's $ <unk> tender offer for <unk> glass container corp + the agreements are with security pacific national bank and an affiliate of donaldson lufkin & jenrette securities corp + proceeds of the loan agreement together with funds from vitro will permit the purchase of all shares outstanding of <unk> and the payment of all related costs and expenses + vitro said the definitive agreements require that <unk> obtain a waiver from its bank lenders of existing <unk> defaults under its bank facilities + since <unk> is still seeking this waiver vitro said the tender offer is being extended until N p.m. est tomorrow + the dollar finished mostly stronger yesterday boosted by a modest recovery in share prices + the dow jones industrial average climbed N points in a spate of bargain-hunting following last week 's declines + attention is fixed on the stock market for lack of anything else to sink our teeth into said robert white a vice president at first interstate of california + some analysts predict that in the absence of <unk> news to push the u.s. unit sharply higher or lower the currency is likely to <unk> below N marks this week + but others reject the view and forecast the dollar will continue to hold its current tight trading pattern + they argue that weakness in both the yen and sterling have helped offset bearish u.s. economic news and have lent support to the dollar + in late new york trading yesterday the dollar was quoted at N marks up from N marks late friday and at N yen up from N yen late friday + sterling was quoted at $ N up from $ N late friday + the dollar rose against the swiss and french francs + in tokyo tuesday the u.s. currency opened for trading at N yen up from monday 's tokyo close of N yen + last week the surprise resignation of british chancellor of the exchequer nigel lawson sent the british pound into a tailspin + while sterling bounced back from session lows in a <unk> of <unk> yesterday foreign exchange dealers said that any hopes that the pound would soon post significant gains have <unk> + traders said that statements made over the weekend to <unk> concern about the stability of prime minister margaret thatcher 's government and the future of her economic program largely failed to <unk> investors and bolster the <unk> british unit + in her first televised interview following mr. lawson 's resignation mrs. thatcher reiterated her desire to keep sterling strong and warned again that full entry into the european monetary system 's exchange rate mechanism would provide no easy solution to britain 's economic troubles + she said that the timing of the united kingdom 's entry would depend on the speed with which other members <unk> their economies + mrs. thatcher 's remarks were seen as a <unk> to several leading members of her own conservative party who have called for a more <unk> british commitment to the ems + at the same time a recent poll shows that mrs. thatcher has hit the lowest popularity rating of any british leader since <unk> began N years ago + comments by john major who has succeeded mr. lawson also failed to damp market concern despite his pledge to maintain relatively high british interest rates + according to one london-based analyst even higher interest rates wo n't help the pound if britain 's government continues to appear unstable + one u.s. trader however dismissed sterling <unk> while acknowledging there is little immediate upside potential for the u.k. unit + there is no question that the situation is bad but we may be painting a <unk> picture than we should he said + he predicts the pound will continue to trade in a very volatile fashion with fits of being <unk> and <unk> before recovering its losses + dealers also note that the general lack of enthusiasm for the yen has helped bolster the u.s. dollar + they <unk> that persistent japanese investor demand for dollars for both portfolio and direct investment has kept a base of support for the dollar at around N yen + the dollar began yesterday on a firm note in tokyo closing higher in late trade + in europe the dollar closed slightly up in a market dominated by cross trades + on the commodity exchange in new york gold for current delivery settled at $ N an ounce down N cents + estimated volume was a moderate N million ounces + in early trading in hong kong tuesday gold was quoted at $ N an ounce + general electric capital corp. 's <unk> bank usa acquired a visa and <unk> portfolio from commercial federal savings & loan association an omaha neb. unit of commercial federal corp. of omaha + terms were n't disclosed + the portfolio currently includes $ N million in receivables ge capital said + ge capital is a financial services subsidiary of general electric co. of fairfield conn. which also has broadcasting and <unk> businesses + ge capital said commercial federal savings will continue to market visa and <unk> programs while <unk> provides operational and marketing support and actually owns the accounts + with the acquisition <unk> blue <unk> ohio has more than N million total accounts ge capital added + east germans rallied in three cities to demand democratic freedoms + as the country 's new leader egon krenz prepared to travel to moscow today for talks with soviet leader gorbachev hundreds of thousands of east germans <unk> in the streets of leipzig <unk> and <unk> to call for internal freedoms and the <unk> of the new forum opposition group + krenz however vowed to preserve the communist party 's hold on political power and said east germans should n't <unk> the nation with <unk> demands + communist officials this month have faced nearly daily pro-democracy protests accompanied by the flight to the west by thousands of east germans + soviet police <unk> with demonstrators in moscow following a <unk> <unk> around the kgb 's <unk> headquarters in memory of those <unk> under <unk> + more than N <unk> attended the service + a <unk> group demonstrated in <unk> square where the police <unk> and <unk> a number of protesters + police in <unk> <unk> about N ethnic <unk> who were <unk> the trial of the former communist party chief of the southern province of <unk> + <unk> <unk> and N others are accused of <unk> <unk> and strikes and opposing constitutional limits to <unk> 's <unk> + if convicted they could be sentenced to death + a court in <unk> sentenced a palestinian to N life terms for forcing a bus off a <unk> july N killing N people israeli radio reported + he also received 20-year sentences for each of the N passengers injured + it was considered the <unk> sentence passed since the start of the <unk> arab <unk> in the <unk> <unk> + u.s. and soviet negotiators opened talks in new york aimed at <unk> differences in proposals to reduce <unk> <unk> + while the kremlin has urged a ban on output of the poison <unk> the white house wants to continue producing the weapons even after an international treaty calling for their destruction is signed + south africa 's government said peaceful demonstrations such as the <unk> rally sunday near <unk> have helped ease <unk> and <unk> political changes + about N people attended the <unk> rally at which leaders of the banned african national congress refused to <unk> violence to end apartheid + secretary of state baker expressed concern that nicaraguan president ortega may attempt to use alleged attacks by the <unk> contra rebels as an excuse to scuttle elections scheduled for february + ortega had threatened to end a <unk> <unk> + baker 's remarks came as the white house urged both sides to honor the truce + the <unk> lexington returned to <unk> in <unk> fla. following an accident sunday in which the pilot of a training jet <unk> into the ship killing five <unk> + the <unk> of the aircraft carrier the oldest in the navy said the <unk> was making his first attempt to land on a carrier + four people <unk> three u.s. flags on the central steps of the u.s. capitol in a bid to test a new federal law protecting the american flag from <unk> + all four demonstrators were arrested + the law which bush allowed to take effect without his signature went into force friday + chinese officials said armed police would replace soldiers in <unk> square as part of a <unk> down of beijing 's <unk> state of emergency + separately the u.s. embassy has filed three protests in as many days with china 's government alleging <unk> of diplomats and their families an embassy source said + authorities in <unk> said the toll from two earthquakes sunday had reached at least N dead and about N injured + the heaviest damage was reported in <unk> about N miles west of <unk> + as rescue teams continued searching for victims hundreds of <unk> accused the government of a <unk> response following the <unk> + britain 's thatcher summoned senior advisers for strategy talks as opinion polls showed the prime minister 's popularity had hit a record low following the resignation last thursday of chancellor of the exchequer lawson + one poll conducted for the british broadcasting corp. found that N N of voters believed that she should quit + lawmakers in hungary approved legislation granting <unk> to many people convicted of crimes punishable by less than three years in prison + they also established an office to control government and party finances + the laws take effect next month + died robert v. van <unk> N chairman of mutual benefit life insurance co. sunday in morristown n.j. of cancer + fluor corp. said it was awarded a $ N million contract to provide engineering and <unk> services at a copper mine in <unk> <unk> indonesia for a unit of freeport-mcmoran copper co + fluor based in irvine calif. will direct expansion of the mine 's capacity to N metric tons a day from N metric tons a day + completion of the project is expected by <unk> + in N fluor had revenue of $ N billion and earnings of $ N million or N cents a share + <unk> computer ag citing continued profitability problems said it will have to reduce personnel further notably in research and development sectors + the troubled west german computer company said in a statement to its employees that the number of persons working in product development will be reduced world-wide to N from N by the end of N + the number of workers in production sectors will be cut by N to N by september + the cuts will be made half within germany and half abroad + in the first nine months of N <unk> said sales rose N N amid good growth in selected areas such as banks and trading companies + the company also cited some success in <unk> cost increases and said it wants to return to profitability in N + it cited the expected beneficial effects of a concentration on key products further structural changes within the group and cooperation agreements with other companies + great northern nekoosa is being sought by another big paper company georgia-pacific for $ N a share or about $ N billion + the tender offer which surprised analysts because it appeared to be unsolicited could spark a period of industry consolidation + analysts questioned whether georgia-pacific will ultimately prevail saying other paper concerns may make competing bids + two more securities firms bowed to the outcry over program trading + ge 's kidder peabody unit said it would stop doing stock-index arbitrage for its own account while merrill lynch said it was <unk> such trading entirely + also the big board met with angry stock specialists + a big <unk> case will be reviewed by the supreme court + the justices agreed to decide whether federal insurers can require ltv to take back <unk> for funding its $ N billion pension <unk> + drug companies lost a major liability case + the supreme court let stand a new york ruling that all manufacturers of an <unk> drug are liable for injuries or deaths if the actual maker is n't known + revco received a $ N million takeover offer from texas financier robert bass and acadia partners + the <unk> chain reacted cautiously saying the plan would further swell its huge debt which forced the company into chapter N protection last year + rockefeller group agreed to sell a N N interest to mitsubishi estate a major japanese developer and property owner for $ N million + officials at some rockefeller units are said to be unhappy with the agreement + continental air replaced its top executive for the sixth time in as many years + chairman and chief executive joseph corr was succeeded by frank lorenzo chief of parent texas air + united air 's parent may have to pay as much as $ N million to the labor-management buy-out group for fees and expenses incurred in their failed $ N billion takeover bid + gen-probe agreed to be bought by chugai pharmaceutical for about $ N million + the sale is likely to fuel concern about growing japanese investment in u.s. biotechnology firms + boeing posted a N N jump in third-quarter earnings but wall street 's attention was focused on the continued strike at the aircraft maker + the fed delayed approval of first union 's $ N million acquisition of florida national banks pending a review of first union 's lending practices in low-income neighborhoods + allianz of west germany entered the takeover battle between france 's paribas and navigation mixte + maxwell agreed to sell its u.s. printing unit to quebecor for $ N million making quebecor the no. N commercial printer in north america + new construction contracts rose N N in september led by commercial industrial and <unk> projects according to <unk> dodge group + western union took steps to withdraw a $ N million debt swap citing turmoil in the junk bond market + markets + stocks volume N shares + dow jones industrials N up N transportation N up N utilities N up N + bonds shearson lehman hutton treasury index N up + commodities dow jones futures index N off N spot index N off N + dollar N yen up N N marks up N + pacific telesis group said its pacific bell unit sustained property damage of about $ N million to $ N million from the california earthquake earlier this month + the san <unk> telecommunications company said it carries $ N million of earthquake insurance with a $ N million deductible provision + sam <unk> chairman and chief executive officer told securities analysts in new york that the company expects somewhat slower per-share earnings growth in N although annual growth should return to the traditional figure of about N N thereafter + as factors contributing to the temporary slowdown he cited one-time rate reductions prescribed by california regulators as a prelude to a new <unk> that <unk> profit constraints + he also mentioned increased capital investment by pacific bell for network improvements + mr. <unk> said the company 's cellular operations now serve about N customers up N N from a year ago + general motors corp. is planning to build a new engine plant in europe that may be built in britain provided the company can reach a satisfactory agreement with unions sources said + officials of <unk> motors ltd. gm 's british unit were meeting with union leaders late yesterday in hopes of winning such an accord + the engine plant may <unk> plans for a joint components venture with jaguar + alternatively a separate engine plant may be built as part of gm 's planned <unk> with the british luxury car maker the sources said + sources said a complex and detailed announcement of a joint agreement between general motors and jaguar would be made by jaguar some time in the next N N weeks + cray research inc. won government clearance for its proposed reorganization of founder seymour cray 's supercomputer design team into a separate company + internal revenue service approval of the move as a tax-free transaction was the last hurdle to splitting up the world 's dominant maker of <unk> which mr. cray founded in N + cray 's directors set nov. N as the record date for distribution of shares in the new company to be called cray computer corp + it will trade over the counter under the symbol cray + the plan calls for cray research holders to receive one share in the new company for every two shares held + an estimated N million cray computer shares will be distributed cray research said + under the accord cray research will transfer to mr. cray 's fledgling operation $ N million of assets primarily related to the cray-3 development project his team is undertaking and will lend cray computer $ N million + cray research will retain a N N interest in the new company which will be based in colorado springs <unk> + when it announced the planned breakup in may cray research said development costs of several competing projects were <unk> its earnings growth + after the split the two companies presumably will be rivals for orders from government and commercial customers + <unk> systems inc. ann <unk> mich. said it will report net income for the fourth quarter ended sept. N fell to $ N or N cents a share from $ N or N cents a share a year earlier + chairman carl l. <unk> said the decline occurred although revenue rose N N to more than $ N million from $ N million a year earlier + the company which makes computer parts said fiscal N earnings were down slightly from $ N million or N cents a share in fiscal <unk> + the company said fiscal N revenue increased about N N to more than $ N million from $ N million + mr. <unk> said that early signs point to improved earnings and revenue in the first quarter of fiscal N + the current backlog of orders is strong throughout the corporation he said + <unk> corp. said it filed for protection under chapter N of the federal bankruptcy code and announced a N N reduction in its world-wide employment + the filing in bankruptcy court here follows a string of quarterly losses and product <unk> for the maker of <unk> drives for minicomputers and <unk> + <unk> had a loss of $ N million for the fiscal year ended july N compared with year-earlier profit of $ N or two cents a share + revenue for the year fell N N to $ N million + the <unk> staff <unk> announced yesterday will bring <unk> 's employment to about N workers less than half of what it was before a similar <unk> reduction in august + the company yesterday also said it was <unk> one of its major new products a <unk> drive which while technically <unk> did n't hold much promise of generating substantial orders because financing problems caused a nine-month delay in getting the product to market + the french economics ministry approved a planned asset swap between the defense and electronics group <unk> s.a. and the bank group credit lyonnais + the ministry said the swap details of which were disclosed last thursday will allow both state-controlled companies to reinforce operations in their main markets and argued that the move shows the <unk> of france 's <unk> concerns + the approval also ends any hope that banque <unk> de paris another <unk> bank might have had about taking credit lyonnais 's place in the accord + it hinted over the weekend that it would have been interested in a <unk> with <unk> + under details of the accord credit lyonnais will take slightly more than N N of <unk> finance in exchange for about N N of its own shares + the move will help the bank to keep up with international <unk> ratios being phased in by the bank for international settlements and will also represent the first time that its voting shares have been held by a party other than the government + <unk> general corp. received tenders for N N of its N N convertible senior subordinated notes due april N N and N N of its N N convertible senior subordinated debentures due march N N + in exchange offers that expired friday holders of each $ N of notes will receive $ N face amount of series a N N senior secured convertible notes due jan. N N and N common shares + for each $ N face amount of debentures holders received $ N of series b N N senior secured convertible notes due oct. N N and N common shares + <unk> a new york maker of genetically engineered products for human and animal health care said it made the exchange offer to reduce its interest payments + japanese companies have long been accused of <unk> profit to boost sales + but fujitsu ltd. has taken that practice to a new extreme + japan 's biggest computer maker last week undercut seven competitors to win a contract to design a <unk> system for the city of hiroshima 's waterworks + its bid one yen or less than a u.s. penny + the bid created such a furor that fujitsu said it is now offering to withdraw from the project + from a <unk> viewpoint it was not <unk> acceptable a fujitsu spokeswoman said yesterday + hiroshima city officials could n't be reached to find out whether they would drop fujitsu 's bid + fujitsu said it issued the low bid because it wanted a foot in the door of a potentially lucrative market + we desperately wanted the contract because we want experience in the field the fujitsu spokeswoman said + we expect a big market in the future so in the long term it will be profitable + it 's a kind of an investment + hiroshima 's waterworks bureau said the municipal government had <unk> about N million yen $ N for the project + i was <unk> <unk> <unk> head of the bureau was quoted by <unk> news service as saying + i understand the firm 's enthusiasm in getting the deal but such a large company would have been better off showing a little more discretion + indeed fujitsu officials admitted they may have been a little <unk> + the fujitsu spokeswoman said <unk> officials did n't approve the bid in advance and will take measures so this kind of thing does n't happen in the future + it 's contrary to common sense she added + specifically fujitsu won the right to design the specifications for a computerized system that will show water lines throughout the city + the system could be used in a fire or earthquake to <unk> problems among other things + a waterworks official said fujitsu will have to design the system so it would be compatible with other makers ' equipment + but industry officials expressed concern that the initial project might give fujitsu an edge in winning more lucrative contracts later + fujitsu said it hopes the hiroshima contract will help it secure <unk> with other municipalities + japanese local governments are expected to invest heavily in computer systems over the next few years and many companies expect that field to provide substantial revenue + in the near future it will be a big market not just for waterworks but for all <unk> systems the fujitsu spokeswoman said + we can expect a <unk> market + no foreign companies bid on the hiroshima project according to the bureau + but the japanese practice of deep discounting often is cited by americans as a classic barrier to entry in japan 's market + earlier this year the u.s. complained that japan 's supercomputer makers were effectively closing out foreign competitors by slashing prices as much as N N for universities + fujitsu was n't the only company willing to sacrifice profit on the project + three competitors bid between N yen and N yen according to the hiroshima government office + other bids ranged from about N million yen to N million yen + american airlines will expand its <unk> service N N beginning next year with six new daily flights between the u.s. and europe officials announced yesterday + american a unit of amr corp. is the nation 's largest airline + the new <unk> flights starting next may will include <unk> <unk> <unk> <unk> a second daily <unk> flight and a second daily <unk> flight the officials said + chicago has the largest population of citizens of polish heritage in any city outside poland + with the new service american will fly N flights a week to N european cities + the additions <unk> american 's position as the third-largest u.s. transatlantic carrier behind <unk> corp. 's pan american world airways and trans world airlines + <unk> ag said sales for its domestic group rose N N in the first nine months of N from a year earlier + the west german retailing group also said that the results of the first three quarters suggest it will meet its profit goal for the year + earnings at the department-store division which generates the bulk of profit should remain at least stable while income at the mail-order and tourism units is likely to fall slightly from N the company said + <unk> did n't give any group sales or profit figures for the first nine months + georgia-pacific corp. offered to acquire great northern nekoosa corp. for $ N a share or about $ N billion + the offer capped a week of rumors that georgia-pacific an atlanta-based forest-products company was considering making a bid for nekoosa a <unk> concern based in <unk> conn + executives at nekoosa could n't be reached and officials at georgia pacific declined to comment + analysts however were surprised because the tender offer appeared unsolicited + it 's quite a <unk> said one adding that the offer could spark a period of industry consolidation + the two companies would appear to be a logical fit because of their <unk> lines and analysts described the offer representing a N N premium over nekoosa 's market price as fair + nekoosa closed yesterday at $ N up $ N in new york stock exchange composite trading + but industry observers still questioned whether georgia pacific will ultimately prevail + you have to watch out for <unk> said one analyst + international paper or weyerhaeuser could step in + the bid for great northern a notice of which appears in an <unk> in today 's wall street journal is the first big takeover offer since the collapse of a $ N billion buy-out of united airlines parent ual corp. oct. N + that collapse following on the heels of disarray in the market for high-risk high-yield bonds cast doubt on the entire takeover business which has fueled both big profits among wall street securities firms and big gains in the stock market generally + while georgia-pacific 's stock has outperformed the market in the past two years nekoosa has lagged the market in the same period + yesterday 's rise in nekoosa 's share price came on volume of N shares four times the daily average + according to dow jones professional investor report options trading in nekoosa was also heavy ranking only behind international business machines corp. and ual in volume on the chicago board options exchange + according to the value line investment survey demand for nekoosa 's commodity paper has weakened prompting earnings to decline by N N in the third quarter ended sept. N + value line added with discounts widening on business papers and with newsprint and <unk> shipments flat we expect negative earnings comparisons through next year + by contrast value line said georgia-pacific is in a <unk> good position to deal with weakening paper markets because its production is concentrated not in the northwest but in the south where it should be able to avoid some of the cost pressures from rising <unk> prices + also it is n't exposed to the weakening newsprint business and is strong in the <unk> tissue business + the purchase of nekoosa would easily <unk> georgia-pacific 's $ N million acquisition of <unk> pulp & paper co. last year + that acquisition which also included the assumption of $ N million in debt was designed to allow georgia-pacific to capitalize on the strong demand for <unk> pulp as well as reduce its exposure to the housing market + <unk> <unk> & co. is the <unk> for the offer which will expire nov. N unless extended + ratners group plc 's u.s. subsidiary has agreed to acquire jewelry retailer weisfield 's inc. for $ N a share or about $ N million + weisfield 's shares soared on the announcement yesterday closing up $ N to close at $ N in national over-the-counter trading + ratners and weisfield 's said they reached an agreement in principle for the acquisition of weisfield 's by sterling inc + the companies said the acquisition is subject to a definitive agreement + they said they expect the transaction to be completed by dec. N + weisfield 's based in seattle wash. currently operates N specialty jewelry stores in nine states + in the fiscal year ended jan. N the company reported sales of $ N million and pretax profit of $ N million + ratners which controls N N of the british jewelry market would increase the number of its u.s. stores to about N stores from N + it has said it hopes to control N N of jewelry business in the u.s. by N currently it controls about N N + mcdonnell douglas corp. received contracts totaling $ N million for N <unk> aircraft for the navy and helicopter spare parts for the army + <unk> general corp. a unit of <unk> inc. was awarded a $ N million air force contract for <unk> missile rocket motors + rockwell international corp. received a $ N million navy contract for <unk> <unk> missiles + honeywell inc. got a $ N million navy contract for aircraft missile warning sets + <unk> aircraft corp. a unit of <unk> co. received an $ N million air force contract for <unk> aircraft support + <unk> devices inc. said it may purchase as many as one million of its common shares over the next several months + <unk> also said that a one million share buy-back program announced in march is substantially complete + the company which makes integrated circuits and other electronic parts now has about N million common shares outstanding + in new york stock exchange composite trading yesterday <unk> devices closed at $ N up N cents + john lehman 's editorial-page article on the pentagon as a <unk> house <unk> the real roots of its ghost population in the pentagon the <unk> walk oct. N + the media 's treatment of the defense department during the vietnam war the carter administration 's <unk> of the military and the public <unk> of <unk> col. oliver north have all served to <unk> the poor <unk> who live there + the resulting <unk> house tends to reward <unk> not leadership it creates <unk> about wearing the uniform and raises doubt about having the will to fulfill the ghosts ' role <unk> to be able to win if called on + perhaps the halloween season is a good time for congress to be looking at funding for some <unk> equipment + mike greece former air force career officer new york + where does mr. lehman get off <unk> gen. george marshall for <unk> in on naval prerogatives + ever since the days of alfred <unk> <unk> u.s. naval officer and naval <unk> and teddy <unk> the navy has been the service most favored by washington <unk> + mr. lehman <unk> the fact that the navy <unk> its own air force the carrier fleet and its own army the <unk> which in turn has its own air force + of course these turf <unk> are <unk> <unk> and potentially dangerous and should be resolved in the interest of national security but mr. lehman seems to be part of the problem rather than part of the answer + <unk> <unk> <unk> texas + i agree with mr. lehman N N + is n't this the same guy who resigned as navy secretary because he could n't get his <unk> navy + i personally do not want to <unk> mr. lehman 's demise but i can see him figuring <unk> in his own article + carl <unk> jr birmingham mich + for the sixth time in as many years continental airlines has a new senior executive + gone is d. joseph corr the airline 's chairman chief executive and president appointed only last december + mr. corr resigned to pursue other business interests the airline said + he could not be reached for comment + succeeding him as chairman and chief executive will be frank lorenzo chairman and chief executive of continental 's parent texas air corp + mr. lorenzo N years old is <unk> the job that was his before mr. corr signed on + the airline also named <unk> <unk> as president + mr. <unk> N is a <unk> veteran of texas air and texas international airlines its predecessor + most recently he had been executive vice president for planning and finance at texas air + top executives at continental have n't lasted long especially those recruited from outside + but mr. corr 's tenure was shorter than most + the <unk> mr. corr was hired largely because he was credited with returning trans world airlines inc. to profitability while he was its president from N to N + before that he was an executive with a manufacturing concern + at continental he cut money-losing operations which helped produce a modest profit in this year 's second quarter + but mr. corr a <unk> pilot in his spare time was understood to be frustrated by what he regarded as limited freedom under mr. lorenzo + while not officially an executive at continental during mr. corr 's tenure mr. lorenzo is known for keeping close <unk> on texas air 's operating units + continental is texas air 's flagship and was built painfully to its present size under mr. lorenzo after emerging from bankruptcy proceedings in N + it 's unclear what role if any mr. lorenzo 's recent exploration of a possible sale of a stake in continental had in mr. corr 's departure + one source familiar with the airline said however that mr. corr was n't informed in advance during the summer when mr. lorenzo began discussions with potential buyers + during his tenure mr. corr attempted through a series of meetings to inform managers of some of the company 's future plans traveled widely to talk to employees and backed training sessions designed to improve the carrier 's image + mr. <unk> is one of a handful of executives mr. lorenzo has relied on over the years + previously he had served in financial planning positions at the company 's eastern airlines unit + another longtime ally phil <unk> currently heads eastern now in chapter N bankruptcy proceedings + mr. <unk> previously had a turn at running continental + among the other <unk> are stephen wolf now chairman of ual inc. and thomas <unk> president of pan am corp + <unk> cos. said its <unk> payments have been extended until may N N to give it more time to sell its wilson foods corp. retail and fresh meat operations + the company was to repay $ N million in debt on dec. N and $ N million on march N + the company acquired the debt when it paid $ N million to purchase wilson last year + an agreement to sell the wilson assets for $ N million in cash and notes collapsed in late september when the buyer a company controlled by george gillett could n't secure financing + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + charles d way president of this restaurant operator assumed the additional post of chief executive officer + he succeeds alvin a. mccall in the position + mr. mccall will remain chairman + australia 's inflation is expected to rise as high as N N in the quarter ending march N but could fall to around N N by june according to economists + the government said the consumer price index rose N N in the quarter ended sept. N from the previous quarter and N N from a year ago + charles a. pearce N years old will retire from his post as chief executive officer of this bank holding company effective dec. N + he will remain chairman + charles r. simpson jr. N president and chief operating officer will assume the chief executive 's post + it is a peaceful time in this part of western india + the summer crop is <unk> winter <unk> has yet to begin + farmers in loose <unk> and fancy <unk> spend their <unk> laughing and <unk> at the markets + one could imagine such a <unk> in the lives of the arabs before the <unk> of oil prices + for just as the arabs were in the 1960s the farmers of sidhpur are on the brink of global power and fame + the arabs had merely oil + these farmers may have a grip on the world 's very heart + or at least its heart disease + that is because sidhpur has a <unk> on the world 's supply of <unk> seed also known as <unk> <unk> or in western <unk> psyllium a tiny <unk> <unk> seed that according to early research may reduce cholesterol levels in the blood + ever since the link to cholesterol was disclosed americans have begun <unk> up psyllium in their breakfast <unk> + if further research proves the seed 's benefits this dusty farm district could become the epicenter of a <unk> fad to rival all <unk> since <unk> oil + this seed 's not grown anywhere else in india or anywhere else in the world says <unk> <unk> a vice president of procter & gamble india ltd. a major psyllium buyer and <unk> + the proper <unk> conditions do n't exist in many places in the world + <unk> patel a <unk> and exporter of the seed <unk> if psyllium takes the place of oat bran it will be huge + whether psyllium makes sidhpur 's fortune depends on <unk> americans the u.s. food and drug administration and of course the outcome of further research + only one thing is certain here <unk> is likely to remain solely an export item from sidhpur for a long time + local farmers say it is as good a cash crop as <unk> or <unk> a <unk> + but they have no desire to eat a bowl of psyllium each morning and perhaps little need lean <unk> <unk> the farmers are <unk> in the <unk> <unk> world of cholesterol + psyllium is an annual <unk> <unk> <unk> that has been used for centuries by folk doctors here mainly as a <unk> and <unk> + as such the <unk> fiber has an almost <unk> following in northern india + i can assure you <unk> a <unk> lawyer in new <unk> with a <unk> raised <unk> from personal experience it works + a prominent businessman in <unk> gives a similar <unk> i have been taking it daily since N + folk doctors also <unk> it for kidney <unk> and <unk> problems <unk> <unk> and <unk> + some apply it to <unk> <unk> + the plant has a <unk> stem that produces flowers and <unk> seeds + it is the seed 's <unk> and size N of them weigh only N <unk> or about as much as two paper <unk> that explain the historical <unk> to <unk> + the <unk> <unk> of the seed is removed <unk> and crushed the seed itself is fed to animals + some N N of the crop which was worth $ N million last year is exported + for decades psyllium <unk> has been the main <unk> in such <unk> as procter & gamble co. 's <unk> the <unk> brand in the u.s. and ciba-geigy corp. 's <unk> + but some time ago researchers discovered that <unk> fibers also lower cholesterol levels in the blood + <unk> p&g took an interest it ordered two studies on psyllium and cholesterol + one of the studies done at the university of minnesota tested N people with raised cholesterol levels + after N weeks the group that took three daily <unk> of <unk> saw a significant dip in their general cholesterol levels and an even larger reduction in levels of <unk> <unk> the so-called bad cholesterol + in late N p&g asked the fda for approval to market <unk> as the first <unk> <unk> product in the + in april the psyllium <unk> got more crowded + general mills inc. the food giant launched a breakfast cereal called benefit containing psyllium oat wheat and <unk> bran the words reduce cholesterol were <unk> displayed on its package + in september kellogg co. launched a competing <unk> cereal called <unk> + suddenly on television in advertisements and on their cereal boxes americans were <unk> with news about the <unk> seed + the flood of claims and <unk> worried consumers and actually hurt sales of the new <unk> + this month the food and drug administration expressed concern that americans might someday in various forms <unk> too much psyllium + currently there is a <unk> in the psyllium war + the fda has asked kellogg and general mills to show research that their <unk> are safe + it also ordered p&g to produce more studies to <unk> its claims that <unk> can lower cholesterol + but the agency has n't <unk> psyllium off store shelves + if the fda approves the new uses of psyllium other companies are expected to rush to market with psyllium products + it 's going to be a <unk> thing says mr. <unk> of p&g in <unk> + says psyllium exporter mr. patel i just got back yesterday from the u.s. + in the newspapers on the radio and tv psyllium is everywhere + but the news of the boom has yet to <unk> down to the farmers + they only know of one use for the crop as a <unk> and with psyllium prices currently <unk> in the wake of a <unk> crop they think of the seed as a marginal crop something to grow between summer wheat crops + psyllium 's not a good crop complains <unk> <unk> a <unk> farmer from the village of <unk> + you get a rain at the wrong time and the crop is <unk> + even at the basic chemicals pharmaceuticals and cosmetics export promotion council the government agency that <unk> the seed the psyllium boom is distant <unk> + the staff <unk> about psyllium 's hefty contribution to american <unk> without quite <unk> the implications of the research on cholesterol + the council 's annual report has psyllium on its last page <unk> with such <unk> export items as <unk> and <unk> <unk> a plant that <unk> <unk> + in one way the psyllium middlemen the buyers and exporters are glad to keep news of the boom to themselves + they want psyllium prices low for their purchases next year + but there 's a catch + sidhpur and adjacent districts are the only places in the world where psyllium is grown in large quantities + this is partly due to the particular demands of the crop + psyllium needs <unk> soil <unk> during the first few weeks and then total <unk> when its seeds are maturing + small crops are grown in pakistan france spain italy belgium and brazil but their quality ca n't compare to that of indian psyllium + big buyers like procter & gamble say there are other spots on the globe and in india where the seed could be grown + it 's not a crop that ca n't be doubled or tripled says mr. <unk> + but no one has made a serious effort to transplant the crop + in sidhpur it is almost time to <unk> this year 's crop + many farmers too removed to <unk> psyllium 's new <unk> in the west have decided to plant <unk> <unk> <unk> <unk> or <unk> seeds + mr. <unk> is thinking of passing up psyllium altogether this year in favor of a crop with a future such as <unk> or <unk> + maybe i 'll plant <unk> seeds + his brother <unk> whose head is <unk> in a <unk> <unk> <unk> <unk> vigorous <unk> + so when next year 's psyllium crop is <unk> in march it may be smaller than the N metric tons of the past few years right at the crest of the psyllium boom + and the world could experience its first psyllium shortage + <unk> co. said it completed a previously announced acquisition of <unk> manufacturing corp. a new york-based maker of <unk> <unk> and <unk> wear + the apparel maker would n't disclose terms of the agreement + <unk> said <unk> <unk> sr. president of <unk> will continue to head <unk> 's management group + a seat on the chicago mercantile exchange was sold for $ N down $ N from the previous sale <unk> + seats currently are quoted at $ N bid $ N asked + the record price for a full membership on the exchange is $ N set march N N + small businesses say a recent trend is like a dream come true <unk> rates for <unk> insurance initially at least + but then they wake up to a nightmare + the reasonable <unk> rates can be followed by increases of N N or more if a covered employee files a major claim they complain + insurance premiums for one small maryland concern went up N N in less than two years the last increase coming after one of its three workers developed a <unk> disk + there 's a distinct possibility that i may lose my job over this the employee karen allen of floor covering resources <unk> md. recently told a congressional hearing + she said her employer ca n't afford the rate increases and she fears she wo n't find another job with a benefit plan covering her <unk> + for employee and employer alike the worry is widespread + surveys repeatedly show that small-business owners rank the availability and rising cost of health insurance as one of their biggest concerns + the house energy and commerce committee 's health subcommittee headed by democratic rep. henry waxman of california is looking into complaints that small businesses not only ca n't keep reasonably priced <unk> insurance if claims are filed but often ca n't get coverage at all if a worker is termed <unk> <unk> + i have an old-fashioned name for people in that position sick people who need health insurance rep. waxman says + what we 're seeing now makes a <unk> of the idea of insurance collect premiums from the healthy dump the sick and let them pay their own bills + some lawmakers may seek legislation to limit overly restrictive insurance policies + the concern grows out of increased efforts by the insurers to woo the small-business market + as larger companies increasingly <unk> or use reserves to pay their own workers ' medical bills the insurance industry has turned to the <unk> market that was once a <unk> for them + insurance companies will offer a good rate if no one is sick but it 's a roll of the <unk> says <unk> <unk> of the small business service bureau a group representing N small businesses nationwide + one case of cancer or a high-risk pregnancy with a sick <unk> and rates go up N N to N N + small-business people end up paying insurance premiums worth two to three times the cost of one illness + in addition the group says some of its member companies have been denied insurance because individual workers had medical problems that ranged from a mild <unk> condition to psychological counseling after a <unk> <unk> and <unk> + the health insurance association of america an insurers ' trade group acknowledges that stiff competition among its members to insure businesses likely to be good risks during the first year of coverage has <unk> the problem in the small-business market + but it says that rapid rate increases are directly tied to the soaring cost of health care + some business analysts blame the problem on tough competition in the insurance market + they say insurance companies use policies aimed at excluding bad risks because their competitors do + but the general practice makes it more difficult to combine small groups of people into larger groups thus spreading the risk over a larger base of premiums + i 'm not <unk> insurers of <unk> of duty robert <unk> of the u.s. chamber of commerce told mr. waxman 's panel + you ca n't ask one carrier to underwrite on social grounds when that might destroy it in the marketplace + rep. waxman and democratic sen. edward kennedy of massachusetts have proposed regulation to deal with the problem + the proposal is just part of legislation that would require businesses to provide health benefits an idea that is strongly opposed by small business who say it would just compound the <unk> problems + but small-business lobbyists say they support the idea included in the <unk> bill of new laws or regulations requiring greater use of community rating which <unk> rates to the use of health care by a community or other large group and is designed to prevent insurance companies from taking only <unk> small companies as clients + but first on the list of priorities says the national federation of independent business is to prohibit state laws requiring the <unk> of specialty items such as psychiatric care in basic health plans + such requirements they argue make it difficult to provide a basic low-cost <unk> package + before the state of wisconsin mandated that <unk> care be covered there were only N <unk> <unk> in the state now there are N says <unk> miller an <unk> lobbyist + she contends that similar <unk> have driven up insurance costs N N in maryland and N N in california + the <unk> association also strongly <unk> with the proposed community rating which does n't save one dollar argues james <unk> <unk> 's washington counsel + it just makes healthy businesses subsidize <unk> ones and gives each employer less incentive to keep his workers healthy + mr. <unk> says the <unk> is working on a proposal to establish a privately funded reinsurance mechanism to help cover small groups that ca n't get insurance without excluding certain employees + the <unk> of the insurance problem make the outcome difficult to predict + but to ms. allen the employee whose back problem triggered a huge <unk> increase the issue was simple + what good is having health insurance she asked when it 's so expensive that it becomes impossible to keep after only one major claim + the belgian consumer price index rose a provisional N N in october from the previous month and was up N N from october N the ministry of economic affairs said + the index which uses a base of N as N was calculated at N points in october from N in september + annual inflation rose to N N in october from N N in september + belgium 's inflation has been rising steadily for the past year but the ministry said the latest rise is slower than gains in september and august + nashua corp. rumored a potential takeover target for six months said that a dutch company has sought u.s. approval to buy up to N N of nashua 's shares + nashua immediately responded by strengthening a <unk> plan and saying it will buy back up to one million of its shares or N N of the N million outstanding + nashua whose major business is selling <unk> facsimile machines and related supplies said <unk> & co <unk> of the netherlands filed a request with the federal trade commission under the hart-scott-rodino act for permission to buy more than $ N million of nashua 's stock but less than N N + previously an affiliate of unicorp canada disclosed a stake of less than N N in nashua according to daniel m. <unk> nashua 's treasurer + nashua 's stock has <unk> sharply on takeover speculation rising to a high for the year of $ N a share in june from $ N in march + but the company has had weak results so far this year with earnings declining N N to $ N million or $ N a share on a N N decline in revenue to $ N million through the first nine months of the year + its stock has slumped recently closing unchanged friday at $ N a share in composite trading on the new york stock exchange at that price the company has a market value of about $ N million + nashua announced the <unk> request after the market closed + mr. <unk> said nashua 's intention is to remain an independent public company + the company said it amended its shareholder rights plan by reducing to N N from N N the level of ownership by an outsider that would trigger the issuance to other holders of rights to buy additional shares of nashua common at half price + in addition the company 's board authorized the purchase of up to an additional one million shares + under a program approved by the company in N that did n't specify a share amount nashua had purchased N shares through sept. N + alex henderson an analyst at prudential-bache securities said that while nashua 's performance this year has been <unk> the company nonetheless is attractive as a classic breakup candidate because there 's no similarity between its four businesses + he estimated the breakup value at $ N a share + in addition to selling <unk> <unk> and facsimile machines in europe and <unk> supplies in the u.s. nashua has three other major businesses labels and tapes data storage disks for computers and mail-order <unk> + the closely held supermarket chain named frank <unk> vice president and treasurer + the <unk> mr. <unk> joins grand union from singer co. where he was treasurer + the current account deficit on france 's balance of payments narrowed to N billion french francs $ N million in august from a revised N billion francs in july the finance ministry said + previously the july figure was estimated at a deficit of N million francs + seasonally adjusted figures for august were n't available because of a recent strike that has disrupted the ministry 's data collection + weisfield 's inc. said it is in preliminary discussions regarding the possible sale of the company + a spokesman for the retail <unk> said the company would provide more details today and that it expects to reach a definitive agreement by the end of the week + in over-the-counter trading friday weisfield 's gained $ N to $ N + at that price the company has an indicated value of $ N million + weisfield 's had about N million shares outstanding as of july N + the stock gained $ N thursday to close at a <unk> week high + in the aftermath of the beijing massacre on june N economists advanced wildly <unk> views on how hong kong would be affected + among the most upbeat was <unk> brokerage asia ltd + in a june N reaction the bankers trust co. unit proclaimed the economy <unk> + others were more cautious + in a july analysis titled from euphoria to <unk> <unk> carr far east ltd. another securities firm said that eroding confidence might undermine future economic development + today with business activity in hong kong staggering along at an <unk> pace the economy itself seems locked in a struggle between hope and fear + manufacturers have survived the turmoil in china largely <unk> + signs of revival seem evident in hong kong 's <unk> hotel sector + but in the stock and real-estate markets activity remains <unk> even though prices have regained much of their lost ground + <unk> demand reported by <unk> retailers and even fancy restaurants all reinforce a profile of a community that is sharply tightening its belt + as many economists and businessmen see it those <unk> underscore a <unk> that seems likely to <unk> the economy throughout the 1990s + that <unk> is hong kong 's economically rewarding yet politically <unk> relationship with china + as a model of capitalist efficiency on southern china 's <unk> hong kong 's prospects look good + china 's land and labor offer <unk> alternatives to local industry + <unk> freight <unk> through the territory 's port + in the decade since the communist nation emerged from <unk> its <unk> trade with the west has lifted hong kong 's status as a regional business center + these benefits seem secure despite china 's current economic and political troubles + but to hong kong china is n't <unk> business + it is also the <unk> power that come N will take over this british colony + china 's leaders have promised generous <unk> for <unk> hong kong + that promise sounds shaky now that those same leaders have fallen back on marxist <unk> and <unk> force to crush their nation 's democracy movement + outflows of people and capital from hong kong have been growing since the sovereignty issue first arose in the early 1980s + a widely held assumption all along has been that given its robust economy hong kong will be able to attract sufficient foreign money and talent to <unk> offset the outflows + with interest in emigration and investment abroad soaring since june N that assumption no longer seems so safe + investment and emigration plans take time to come to <unk> + only four months have passed since the beijing massacre and few are prepared to predict its ultimate impact + the only consensus is that more money and people may leave hong kong than had been thought likely + this expected blow has cast a pall over the economy 's prospects + the question as many people see it is how long such uncertainty will last + <unk> fraser an economist with <unk> carr a subsidiary of france 's banque <unk> believes that the territory may not be able to regain its momentum until some time after N + it may experience an <unk> or two in between + but with local investors shaken by china 's political and economic turmoil she says a genuine recovery may not arrive until hong kong can prove itself secure under chinese sovereignty + investors have to accept the possibility of a significant slowdown in economic activity in the <unk> to N she says + over the next few years i would advise caution + in a <unk> published book on the territory a political economist <unk> <unk> has derived three future scenarios from interviews with N hong kong government officials and businessmen + nearly half of them argue that hong kong 's uneasy relationship with china will <unk> though not inhibit long-term economic growth + the rest are split roughly between <unk> who expect hong kong to <unk> along as before and <unk> who <unk> <unk> chaos + the interviews took place two years ago + since the china crisis erupted mr. <unk> says the scenario as <unk> by the <unk> group bears a remarkable <unk> to the difficulties hong kong currently faces + the consensus of this group which he <unk> <unk> is that the local economy will grow through the 1990s at annual rates averaging between N N and N N + such a pace of growth though respectable for mature industrialized economies would be unusually slow for hong kong + only twice since the 1960s has annual gross domestic product growth here fallen below N N for two or more consecutive years + the first instance occurred in N when china 's cultural revolution triggered bloody street <unk> in the colony + the other came in N from the combined shock of world recession and a severe local stock market crash + during the past N years hong kong 's economic growth has averaged N N annually + given hong kong 's record mr. <unk> 's <unk> might have sounded <unk> conservative when the interviews took place two years ago + under the current circumstances he says their scenario no longer seems <unk> + the city could lose some of its entrepreneurial flavor + it could lose some of its <unk> says mr. <unk> a director of baring securities hong kong ltd. a unit of britain 's <unk> plc + it does n't have to be a disaster + it just means that hong kong would become a less exciting place + going by official forecasts of <unk> which measures the colony 's output of goods and services minus foreign income mr. <unk> 's <unk> seem relatively close to the mark + after taking into account the fallout from the china crisis the government has projected N <unk> growth of N N + the <unk> forecast published aug. N compares with an earlier forecast of N N published march N and a N N rate achieved in + sir <unk> jacobs hong kong 's financial secretary says a further downward revision may be justified unless the economy stages a more convincing rally + we are n't looking at anything like a <unk> scenario he says + but clearly we 're entering a difficult period + many factors besides a <unk> of N will have a bearing on hong kong 's economy + one concerns japanese investors + barely visible on hong kong 's property scene in N by last year japan had become the top foreign investor spending $ N million + the market has grown relatively quiet since the china crisis + but if the japanese return in force their financial might could compensate to some extent for local investors ' <unk> commitment + another and critical factor is the u.s. hong kong 's biggest export market + even before the china crisis weak u.s. demand was slowing local economic growth + <unk> strong consumer spending in the u.s. two years ago helped <unk> the local economy at more than twice its current rate + indeed a few economists maintain that global forces will continue to govern hong kong 's economic <unk> + once external conditions such as u.s. demand swing in the territory 's favor they argue local businessmen will probably overcome their N worries and continue doing business as usual + but economic arguments however solid wo n't necessarily <unk> hong kong 's N million people + many are refugees having fled china 's <unk> cycles of political repression and poverty since the communist party took power in N + as a result many of those now planning to leave hong kong ca n't easily be <unk> by <unk> improvements in the colony 's political and economic climate + emigration applications soared in N when britain and china ratified their accord on hong kong 's future + in N hong kong 's most <unk> year for a decade N left up N N from the previous year + last year N went + the government predicts that annual outflows will level off over the next few years at as much as N a projection that is widely regarded as <unk> low + a large number of those leaving are managers and professionals + while no one <unk> to know the exact cost of such a brain drain to the economy hardly anyone doubts that it <unk> a threat + when the economy loses a big portion of its work force that also happens to include its most productive members economic growth is bound to be affected says <unk> <unk> an economist with hang seng bank + while wall street is retreating from computer-driven program trading big institutional investors are likely to continue these strategies at full blast further <unk> the stock market trading executives say + <unk> to a mounting public outcry three more major securities firms bear stearns & co. inc. morgan stanley & co. and oppenheimer & co. announced friday they would suspend stock-index arbitrage trading for their own accounts + painewebber group inc. announced a <unk> on thursday from stock-index arbitrage a controversial program-trading strategy blamed by many investors for encouraging big stock-market swings + though the trading halts are offered as a sign of concern about recent stock market volatility most wall street firms remain open to handle program trading for customers + trading executives privately say that huge stock-index funds which <unk> wall street firms in terms of the size of their program trades will continue to launch big programs through the stock market + wells fargo investment advisers bankers trust co. and mellon capital management are among the top stock-index arbitrage clients of wall street trading executives say + these huge stock-index funds build portfolios that match the s&p N stock index or other stock indexes and frequently swap between stocks and futures to capture profits + they will do it every chance they get said one program-trading executive + consequently abrupt swings in the stock market are not likely to disappear anytime soon they say + in fact without wall street firms trading for their own accounts the stock-index arbitrage trading opportunities for the big funds may be all the more abundant + more customers may come to us now said james <unk> president of bear stearns <unk> + executives who manage these funds see the current debate over program trading as a repeat of the concern expressed after the N crash + they noted that studies completed after the N crash <unk> program trading as a source of volatility + the issues that are now being raised in classic <unk> fashion fly in the face of a number of post-crash studies said fred <unk> chairman of wells fargo investment advisers + a bankers trust spokesman said that the company 's investment arm uses stock-index arbitrage to enhance investors ' returns + officials at mellon capital were unavailable for comment + stock-index funds have grown in popularity over the past decade as pension funds and other institutional investors have sought a low-cost way to match the performance of the stock market as a whole + many money managers who trade stock actively have trouble consistently matching the <unk> 's returns + some stock-index funds are huge + wells fargo investment advisers for example managed $ N billion in stock investments tracking the s&p N at the end of june according to standard & poor 's corp + mr. <unk> said $ N billion of that is used in active index arbitrage + stock-index funds frequently use the futures markets as a hedging tool but that is a far less aggressive strategy than stock-index arbitrage in which traders buy and sell big blocks of stocks with offsetting trades in stock-index futures to profit from price differences + the 190-point plunge in the stock market oct. N has heightened concerns about volatility + and while signs of an economic slowdown softer corporate earnings and troubles with takeover financing all have contributed to the stock market 's recent weakness many investors rushed to blame program trading for <unk> market swings + the wall street firms ' <unk> followed their recent <unk> by several institutional investors + last tuesday kemper corp. 's kemper financial services inc. unit said it would no longer trade with firms committed to stock-index arbitrage including the three that later suspended stock-index arbitrage trading on friday + phoenix mutual life insurance co. and <unk> asset management inc. also cut off brokerage firms that engage in program trading + though it is still doing stock-index arbitrage trades for customers morgan stanley 's trading halt for its own account is likely to shake up firms such as kidder peabody & co. that still do such trades for their own account + morgan stanley has consistently been one of the top stock-index arbitrage traders in recent months + indeed morgan stanley 's president richard b. fisher said the firm is putting up money to form a group of regulators investors and investment banks to find out if stock-index arbitrage artificially <unk> stock-market volatility + we have to clear up these issues and find out what is present that is creating <unk> volatility mr. fisher said + there is no question that investor confidence in the stock market is critical + joining the call for some kind of study or regulatory action merrill lynch & co. recommended program-trading reforms late friday including higher margins on stock-index futures and greater regulatory coordination + separately mr. <unk> of bear stearns said his firm is working with regulators to balance margin requirements to enhance <unk> + margin rules determine the minimum amount of cash an investor must put up when buying a security + current rules permit investors to put up less cash for futures than for stocks + some observers say that different rules governing stock and futures markets are partly responsible for volatility + these rules they say permit faster and cheaper trading in futures than in stocks which frequently <unk> the two markets out of line + stock-index arbitrage because it sells the more expensive market and buys the cheaper one attempts to <unk> the link between the stock and futures markets and the adjustments are often abrupt + but <unk> trading rules allow the futures market to trade differently from stocks which invites frequent <unk> of stock-index arbitrage in the first place + there has to be better coordination on a regulatory basis said christopher <unk> director of trading at <unk> securities corp + one agency should have the authority over all equity products + like so many trends in the entertainment industry the current spate of rape <unk> on television seems to represent a <unk> of <unk> and <unk> + the former comes from the latest wave of political <unk> in hollywood especially around <unk> issues such as abortion + the latter comes from the perception on the part of many people in network tv that their only hope of keeping viewers from <unk> to cable is to fill the <unk> with an increasingly raw <unk> + put these together and you get programs about rape + the best of the crop was last week 's season premiere of in the heat of the night the nbc series based on a N feature film about a black philadelphia police <unk> in a small southern town + in the series <unk> <unk> howard <unk> and his wife <unk> <unk> johnson have settled in <unk> miss + because the show has acquired a sense of place by being <unk> on location in georgia this episode in which <unk> gets <unk> by an arrogant white <unk> does a decent job of <unk> the social <unk> of the crime + obviously it 's harder to establish a sense of place in a <unk> tv movie + but tonight 's offering settle the score N p.m. est on nbc does n't even try + this tale of a chicago <unk> returning home to find the man who <unk> her N years earlier is supposed to be set in the <unk> + but it 's more like an illustration of what ben stein describes in his study of social attitudes in the tv industry fear of violence and <unk> because of race or <unk> fear and lack of <unk> about the politics of small-town people produce a powerful wave of dislike of small towns in the minds of tv writers and producers + the writer and executive producer of settle the score steve sohmer is a graduate of yale who participated in a pbs <unk> aired this summer in which six members of the yale class of N <unk> about their lives since <unk> + at one point in the <unk> mr. sohmer who is jewish says he felt rejected by many of the <unk> and <unk> he met at yale + he quotes one student saying you 're just the kind of <unk> we <unk> ca n't stand + mr. sohmer <unk> that it was partly in response to such attitudes that he is now a <unk> on one of the two islands off the coast of america + but is <unk> in hollywood enough + not to judge by settle the score in which mr. sohmer seems to be settling a score of his own + of all the <unk> <unk> of small-town america i 've seen on tv this film is the most <unk> nasty + the sole sympathetic character is the <unk> daughter kate <unk> smith and she is <unk> only by virtue of having nothing in common with her <unk> a truly <unk> pack of southern <unk> whose grim existence consists mostly of growing <unk> and <unk> sex + i mean these folks are so <unk> that they blame pretty kate for the fact that when she was a <unk> someone tied her hands behind her back thrust her head into a <unk> <unk> <unk> <unk> and beat her and then left her to die in a <unk> room + her pa howard duff is the kind of guy who while saying grace at the <unk> table <unk> at the word <unk> and <unk> at the daughter he has n't seen for two decades because he knows in his heart that she enjoyed what happened in the <unk> room and has been <unk> the same taste ever since in the <unk> of chicago + people like pa do exist of course + but in mr. sohmer 's <unk> he is but the tip of the <unk> <unk> + every man kate <unk> is either <unk> <unk> <unk> <unk> <unk> <unk> or all three + add the fact that any one of them including pa could be her <unk> and you have a setting that does n't resemble small-town america or even hollywood 's nightmare of small-town america so much as a <unk> <unk> <unk> like margaret <unk> 's the <unk> 's tale itself soon to be you <unk> it a hollywood movie + there are two exceptions <unk> jeffrey <unk> the local doctor who has always loved kate and lincoln richard <unk> kate 's <unk> but <unk> brother + <unk> makes <unk> passes at kate when she 's <unk> with anger and fear but we know from the outset that he 's not a member of the evil <unk> + how could he be + he 's the director of the local planned <unk> chapter + as for lincoln if you ca n't guess why he 's so sweet to his sister when everybody else <unk> her then i 'm not going to tell you + as for the women they 're <unk> + kate 's <unk> <unk> <unk> is a moral <unk> + her <unk> <unk> wright is a <unk> <unk> afraid that kate will <unk> all the married men in town including a particularly <unk> fellow named tucker whose idea of fun is to leave his wife at home <unk> to her <unk> and cigarette burns while he <unk> kate into a dance that consists of <unk> on her while trying to break her <unk> + at the very least it would appear that <unk> is a poor judge of <unk> <unk> + yet even these <unk> <unk> are not as bad as the moral <unk> at the heart of settle the score + in the <unk> episode of in the heat of the night we saw <unk> being attacked but we were n't invited to enjoy the <unk> + in mr. sohmer 's film by contrast we are urged to share the <unk> excitement of the <unk> creeping up on his victim as the camera <unk> kate in various stages of <unk> and <unk> on the sight of her <unk> body during frequent <unk> to the rape + at this point the truce between <unk> and <unk> gets mighty uneasy + take the scene in which kate stands naked by a <unk> window <unk> to her hidden <unk> look all you want + starting tomorrow i 'm <unk> you + or the one in which she and <unk> are <unk> in the city and after insisting on separate motel rooms she <unk> on his door to pour out her feelings about the rape wearing nothing but a <unk> and a <unk> <unk> + surely the question is obvious + with friends like mr. sohmer do the <unk> of hollywood need enemies + crossland savings bank 's stock plummeted after management recommended a suspension of dividend payments on both its common and preferred stock because crossland may not meet the new government capital criteria effective dec. N + in composite trading on the new york stock exchange friday crossland closed at $ N down $ N a N N decline + a spokesman said the savings bank may not qualify for the capital requirements because under the proposed guidelines its $ N million of preferred stock does n't meet the core capital criteria outlined under the new financial institutions reform recovery and enforcement act of N + he added that final guidelines to be published in early november will determine whether the bank is in compliance + crossland said it retained three investment bankers to assist it in developing and <unk> a financial restructuring plan + it would n't identify the bankers + additionally crossland reported a third-quarter loss of $ N million or $ N a share compared with net income of $ N million or $ N a share a year ago + a major factor in the third-quarter loss was the write-down of $ N million of goodwill + the spokesman said that the proposed guidelines caused crossland to revise its business objectives and consequently to write down the asset value of some previous acquisitions + crossland recorded an additional $ N million in loan loss reserves in the third quarter + net interest income for the third quarter declined to $ N million from $ N million a year ago + however non-interest income rose to $ N million from $ N million + third-quarter loan <unk> dropped sharply to $ N million from $ N billion a year ago + standard & poor 's corp. lowered the rating on crossland 's preferred stock to <unk> from <unk> and placed it on <unk> for possible further downgrade + it also placed on <unk> for possible downgrade other securities including the <unk> rating of crossland 's certificates of deposit and the <unk> rating of its senior subordinated capital notes + about $ N million of debt is affected + the <unk> <unk> in the mail + open it and two <unk> eyes on a boy 's brown face <unk> out from the page <unk> + does the <unk> have a good mind about to be wasted + is he a victim of gramm-rudman cuts + no but he 's endangered all the same his new <unk> on abc needs a following to stay on the air + abc has n't had much luck with shows featuring blacks in recent years and the producers of one new <unk> are a bit desperate + <unk> a show about a black ad executive who gives up the <unk> for a <unk> classroom is <unk> the ratings test + so producers <unk> and <unk> <unk> spun their <unk> and gathered names of black opinion makers to mount a direct-mail campaign + by wooing a core black audience they figure they might keep the show alive at least until the spring <unk> + using direct mail for a tv show is like fishing for <unk> with a <unk> hook + it just is n't done + but <unk> this kind of <unk> plea to black <unk> makes it even more unusual + still mr. <unk> thinks he can reach a good chunk of the three <unk> black homes he needs by mailing to the almost N blacks who form what he calls the <unk> + the <unk> is n't organized but you and i know it exists says mr. <unk> referring to the often <unk> small world of black professionals and community leaders + this is a very personal ethnic style mr. <unk> says + i want people in the barber shops and the beauty shops and standing in line at the <unk> <unk> to be talking about the show + i want white america to talk about it too but i 'm convinced that the <unk> is what 's happening + abc says it is aware of the producers ' action but the mailing was sent without the network 's blessing + the letter in fact takes a <unk> at abc for being a <unk> in black programming + meanwhile as the sunday evening show struggles to stay afloat against the tough competition of murder she wrote the <unk> idea is threatening to turn into a <unk> the <unk> apparently has inspired sample <unk> but <unk> are slow in coming + doug <unk> a black advertising executive who tracks black <unk> patterns gives the <unk> an a for marketing <unk> but is n't alone in his <unk> reaction + some shows just do n't <unk> he says and this is one of them + transcanada pipelines ltd. said it plans to shift its headquarters to calgary alberta from toronto next year to cut costs and be closer to the <unk> natural-gas industry + gerald <unk> president and chief executive officer of the natural-gas pipeline and marketing concern said the company 's future growth is increasingly linked to decisions made by calgary-based gas producers + since deregulation of the market in N producers have become much more intensely involved in both transportation and marketing mr. <unk> said + it 's a matter of being close to those suppliers many of those companies do n't know us as well as they should + transcanada <unk> all gas that moves <unk> from alberta + that includes all the gas consumed in ontario and quebec along with the bulk of canadian gas exports to the + walter <unk> vice president of <unk> gas ltd. a calgary-based gas marketing concern said the industry will welcome the move + having more than a <unk> presence here should enhance communications and business relationships mr. <unk> said + since the cost of <unk> gas is so important to producers ' ability to sell it it helps to have input and access to transportation companies + the move which could cost transcanada as much as N million canadian dollars us$ N million in relocation and severance payments should be complete by next summer mr. <unk> said + all N toronto-based employees will be offered positions in calgary the company said + the company will save between c$ N million and c$ N million annually in office expenses and other administrative costs by moving to calgary mr. <unk> added + part of both the costs and the savings could be passed on to shippers on the transcanada pipeline through <unk> which are based on the value of the pipeline system and the cost of operating it + transcanada is N N owned by <unk> holding company <unk> inc + since its founding in N brooks brothers the <unk> of the ivy league look has <unk> flashy sales promotions and fashion trends the rules that most retailers live by + but with sales growth sluggish and other men 's stores putting on the heat the venerable retailer can no longer afford such a <unk> attitude + so two weeks ago thousands of brooks brothers charge customers customers <unk> to wait for <unk> clearance sales got a surprise an invitation to come in and buy any one item for N N off + during the four-day promotion shoppers at the short hills n.j. store lined up to pay for <unk> items like coats and suits + that 's not all + <unk> from its newspaper ads featuring <unk> <unk> of a suit or a <unk> brooks brothers is marketing an <unk> image in a new campaign that carries the <unk> the surprise of brooks brothers + one color photo displays a rainbow of dress shirts tied in a <unk> another picture shows <unk> with bold designs + the message is loud and clear this is not your father 's brooks brothers + as part of its national ad pitch brooks brothers will show less <unk> women 's clothes moving away from its <unk> business <unk> + one ad shows a bright red <unk> <unk> with a black leather <unk> + and the ad copy is <unk> how can you be a wall street hot shot without at least one brooks brothers suit in your portfolio + brooks brothers hopes that shaking its <unk> <unk> will attract more young men and more women and change consumer perceptions about its range of merchandise + we have men who only buy their shirts and underwear here or younger customers who only buy their job interview suit here says william roberti chairman and chief executive officer of brooks brothers + we want them to buy more of their <unk> here + industry watchers agree that brooks brothers is long overdue in <unk> its <unk> image which has <unk> its growth + when acquired in may N by british retailer marks & spencer plc brooks brothers ' annual operating profit was about $ N million on sales of $ N million + mr. roberti concedes that since the $ N million takeover sales growth has n't been dramatic + for the N months ended march N operating profit at the <unk> chain totaled $ N million on sales of $ N million + as brooks brothers <unk> into the fashion fray it will be playing catch up + many <unk> especially ralph <unk> have <unk> in on the recent popularity of <unk> ivy league and english styles + in keeping with men 's broader fashion scope today businessmen are <unk> in english and italian suits that are conservative but not <unk> + the rigid ivy league customer brooks brothers ' bread and butter meanwhile is becoming <unk> + thus brooks brothers has lost customers to stores that offer more variety such as paul stuart <unk> new york and louis boston + brooks brothers no longer has a lock on the ivy league customer who is <unk> about his clothes says charlie <unk> president of the <unk> shop a traditional men 's store in cambridge mass + by making a break from tradition brooks brothers is seeking a delicate balance + if it <unk> fashion too much the shop risks <unk> its <unk> customers by <unk> value it risks <unk> down its <unk> <unk> + fashion industry consultants also question whether the company can make significant <unk> in its women 's business given that its customer base is less established and that conservative business dress for women is on the decline + brooks brothers ' aim is for N N of total sales to come from the women 's department up from the current N N + everybody <unk> that there are fashion cycles in classic merchandise observes carol farmer a retail consultant + for women <unk> for success in a real structured way is over + despite these challenges marks & spencer sees big potential in brooks brothers noting the widely recognized name and global presence + marks & spencer plans to open roughly N more u.s. stores in the next five years + brooks brothers says business is robust at its N outlets in japan and two shops in hong kong + marks & spencer is also considering opening stores across europe sometime in the future + alan smith president of marks & spencer north america and far east says that brooks brothers ' focus is to boost sales by <unk> its merchandise <unk> while keeping its traditional emphasis + the british parent is also streamlining brooks brothers which continues to make almost all of its merchandise recently shut one of its two <unk> plants in paterson n.j. and has closed boys ' departments in all but N stores + brooks brothers is also remodeling its stores + wednesday it will unveil a $ N million <unk> at its flagship store on madison avenue + with newly installed <unk> the store retains its signature <unk> look but is less <unk> + more shirts and <unk> will be laid out on tables instead of sitting behind glass cases so that customers can walk up and touch them mr. roberti says + because the biggest growth in <unk> is in casual <unk> brooks brothers is chasing more of that business + the entire second floor of its madison avenue store is now casual <unk> featuring items such as ski <unk> leather <unk> and a $ N <unk> baseball hat with the store 's crest + the centerpiece of the overhaul according to mr. roberti is the men 's tailored clothing department where brooks brothers has added new suit styles and <unk> + the perception out there is that we are very conservative and we only sell one type of suit mr. roberti says referring to brooks brothers ' signature <unk> <unk> suit with a <unk> <unk> and <unk> fit + but it now offers more <unk> versions and suits with a <unk> fit + it also plans to add suits cut for athletic men with broader upper bodies + next spring nearly N N of its suits will have <unk> <unk> compared with virtually none a couple of years ago + says mr. roberti we want to turn the customer on + <unk> corp. said it will buy back as many as one million common shares + the maker of chemical and industrial materials did n't say how much it would pay or when it would make the transactions + <unk> also said it would cancel the unused portion of a N buy-back plan for administrative reasons + the plan calls for the company to buy back N shares which reflects a <unk> stock split this year + so far the company had bought back N million shares + in new york stock exchange composite trading friday <unk> closed at $ N down N cents + arthur price abruptly quit as president and chief executive officer of mtm entertainment inc. a los angeles production company that has fallen on hard times + mr. price N years old also stepped down from the board of tvs entertainment plc the british tv company that last year bought mtm producer of such tv programs as hill street blues and the mary tyler moore show + a tvs spokesman said he did n't know mr. price 's plans + james gatward tvs 's chief executive said in a statement that he will assume overall responsibility for mtm 's operations until a successor is named + industry analysts speculated that mr. price 's sudden departure may have stemmed from conflicts with mr. gatward + mr. price wanted to run the mtm business and may have <unk> selling the company to tvs suggested charles <unk> managing director of zenith productions a subsidiary of <unk> communications plc london + mr. gatward declined to comment and mr. price could n't be reached on friday + in the tvs statement mr. price said leaving mtm was a very difficult decision but added that it is now time for a change + the $ N million purchase of mtm represented an <unk> international move for tvs which then was about half the u.s. concern 's size + at the time mr. gatward said his friendship with mr. price had <unk> the way for its link with the small british company + but tvs stunned industry analysts last month by disclosing that it expected mtm to post an operating loss for this year + in that announcement tvs also said it was trimming production finance and hiring a new u.s. sales manager + mr. gatward has spent a lot of time since late september at mtm 's headquarters he eliminated three departments and fired six executives according to the tvs spokesman + further staff cuts are likely the spokesman indicated + obviously we are looking at making economies across the board + tvs blames difficulties in peddling reruns of mtm shows to u.s. broadcasters for the problems at mtm + the market for reruns sold to local u.s. broadcasters has been weak for the past three or four seasons + mr. price <unk> mtm in N with u.s. actress mary tyler moore and grant <unk> her <unk> + mr. <unk> later left to become chairman of national broadcasting co + the tvs spokesman said mr. price still holds about an N N tvs stake acquired as part of the mtm acquisition + in late trading on london 's stock exchange friday tvs shares rose four pence to N pence a share + two rival bidders for connaught <unk> extended their offers to acquire the toronto-based vaccine manufacturer friday + <unk> merieux s.a. which offered N million canadian dollars us$ N million or c$ N a share for connaught said it would extend its bid due to expire last thursday to nov. N + a c$ <unk> bid by ciba-geigy ltd. a pharmaceutical company based in <unk> switzerland and <unk> chiron corp. a <unk> concern was extended to nov. N + it had been due to expire friday evening + merieux previously said it would ensure its bid remained open pending a final decision by canadian regulators on whether to approve the takeover + merieux a vaccine and <unk> firm based in <unk> france is controlled N N by state-owned <unk> <unk> s.a + the canadian government previously said merieux 's bid did n't offer enough net benefit to canada to be approved and gave merieux an until <unk> to submit additional information + merieux officials said last week that they are highly confident the offer will be approved once it <unk> details of its proposed investments to federal regulators + both offers are conditional on regulatory approvals and enough shares being tendered to give the bidders a majority of connaught 's shares outstanding + <unk> merieux which already holds a N N stake in connaught said that at the close of business thursday N shares of connaught and c$ N million face amount of debentures convertible into N common shares had been tendered to its offer + at the close of business thursday ciba-geigy and chiron said N common shares had been tendered to their offer + at last report connaught had N million shares outstanding + separately the ontario supreme court said it will postpone indefinitely a ruling on the lawsuit launched by the university of toronto against connaught in connection with the merieux bid + in a statement prepared by lawyers for the university and connaught the parties said they agreed that as a result of reaching a c N million research accord it is unnecessary that there be a judgment on the merits of the case at this time + lawyers for the two sides were n't immediately available for comment + the university had sought an injunction blocking connaught 's board from recommending or supporting an offer for the company by merieux + <unk> inc. said it is calling for the redemption on dec. N of all the N remaining shares outstanding of its $ N series a convertible preferred stock at $ N a share + the insurance concern said all conversion rights on the stock will terminate on nov. N + until then <unk> said the stock remains convertible into common stock at the rate of N shares of common stock for each share of preferred stock which is equivalent to a conversion price of $ N a common share + in new york stock exchange trading friday <unk> closed at $ N down N cents + <unk> energy corp. said the ohio water development authority approved terms for two series of tax-exempt bonds to finance a <unk> control and <unk> disposal facilities + the authority will issue a total of $ N million of <unk> revenue bonds + proceeds of the sale will go to <unk> 's operating subsidiaries to finance the projects located at a nuclear unit located near cleveland + the bonds will be issued for a term of N years at an interest rate of N N + goldman sachs & co. is the underwriter + general motors corp. 's <unk> truck division put a $ N cash incentive on its N <unk> <unk> and suburban trucks + the program which runs through jan. N also offers <unk> financing in <unk> of the cash <unk> + after days of intense but <unk> negotiations a federal judge last week threatened to convert william herbert hunt 's chapter N personal bankruptcy case into a chapter N liquidation + judge harold c. abramson raised the possibility after talks to end a <unk> between two major creditors failed and all three reorganization plans in the case ran into <unk> + if the case is converted to chapter N what remains of the oil <unk> 's <unk> estate now believed to have a value of less than $ N million would be sold off quickly with most of the proceeds going to the internal revenue service whose claim for $ N million in back taxes has priority in the case + hundreds of smaller creditors could get nothing according to attorneys involved + while admitting such a move would be devastating to most creditors judge abramson told a courtroom filled with nearly two dozen attorneys that he was concerned about the toll mounting legal bills will take on mr. hunt 's shrinking estate and about the fact that following voting by creditors none of the reorganization plans appeared to be viable in their present form + it would be a shame to have a chapter N after all the progress in this case said judge abramson + under chapter N of the federal bankruptcy code a company continues to operate under protection from creditors ' lawsuits while it works out a plan to pay its debts + under chapter N the assets of a company are sold off to pay creditors + despite his reluctance to take the latter step the judge indicated he would move quickly after hearing testimony later this week in the bitter dispute between manufacturers hanover trust co. and minpeco s.a. a minerals concern owned by the <unk> <unk> + the manufacturers hanover corp. unit which is seeking repayment of a $ N million loan has asked the court to give its claim priority over that of minpeco which won a $ N million judgment against mr. hunt his brother nelson <unk> hunt and other defendants last year in a case stemming from their alleged attempts to corner the silver market in + while claiming that penalties legal fees and interest have driven the value of its claim to more than $ N million minpeco has agreed to settle for an allowed claim of as much as $ N million + but even that is disputed by manufacturers hanover which in alliance with the irs contends that minpeco has already collected more than its actual damages from other defendants in the <unk> case + under <unk> from judge abramson a minpeco executive flew in from peru last week to talk directly with executives from manufacturers hanover on a settlement + despite long private sessions in both new york and dallas the two sides ended the week N miles and many dollars apart according to attorney <unk> ray who represents manufacturers hanover + meanwhile inside the courtroom the judge said he would fine attorneys for the two creditors $ N every time they referred to each other with terms such as <unk> or <unk> + all three major creditors the irs minpeco and manufacturers hanover voted against and effectively doomed a reorganization plan proposed by mr. hunt + a reorganization plan proposed jointly by the irs and manufacturers hanover was stalled by a negative vote from minpeco + the mineral concern 's own reorganization plan met a similar fate after opposition from the irs and manufacturers hanover + neither plan is dead however and the judge could force creditors to accept some version of them after ruling on the <unk> hanover dispute + meanwhile settlement negotiations continue between mr. hunt and the irs which has already reached a tentative agreement with nelson <unk> hunt + the two sides have been far apart on how much herbert hunt will continue to owe the government after his assets are sold + stuart e. <unk> a partner in the washington law firm of <unk> <unk> <unk> & murphy was named a director of this utility holding company increasing board membership to N + pacific first financial corp. said it signed a <unk> letter of intent to acquire the construction lending unit of old stone bank of california + terms have n't been <unk> but the transaction is expected to close by year end pacific first said + old stone 's construction lending portfolio includes about $ N million in real-estate loans outstanding + the unit has N employees in four california offices the company said + pacific first owns pacific first federal savings banks and other financial services firms + general electric co. 's <unk> leasing unit completed the $ N million purchase of similar businesses from <unk> national corp. and <unk> corp. <unk> by <unk> the sellers said + the buyer was ge capital <unk> services chicago a major owner of railway equipment and part of the ge capital operations + <unk> new york estimated it had a <unk> gain on the transaction of $ N million including its part of <unk> 's gain + because of tax-loss carry-forward <unk> said it expects to escape taxes on a substantial portion of the gain + the estimated gain for <unk> is $ N million including a tax credit of $ N million the sellers said + the credit for income taxes is a result of having provided deferred income taxes applicable to the sold assets at the higher income tax rates in effect in prior years the sellers said + automatic data processing inc. plans to redeem on nov. N its $ N million of N N convertible subordinated debentures due march N N + the <unk> concern will pay $ N for each $ N face amount of debt + the conversion price for the debentures is $ N a share + in new york stock exchange composite trading friday automatic data closed at $ N a share down $ N + if all the debt is converted to common automatic data will issue about N million shares last monday the company had nearly N million shares outstanding + automatic data is <unk> the bonds because the after-tax cost of the interest on the bonds is higher than the dividend yield on the common a spokesman said + dow jones & co. extended its tender offer of $ N a share or about $ N million for the N N of telerate inc. that it does n't already own until N p.m. est nov. N + the offer which telerate 's two independent directors have rejected as inadequate previously had been scheduled to expire at midnight friday + dow jones said it extended the offer to allow shareholders time to review a supplement to the dow jones tender offer <unk> that it <unk> last friday + the supplement contains various information that has been filed with the securities and exchange commission since dow jones launched the offer on sept. N but it does n't change the terms and conditions of the offer except to extend its expiration date + in delaware chancery court litigation telerate has criticized dow jones for not disclosing that telerate 's management expects the company 's revenue to increase by N N annually while dow jones based its projections of telerate 's performance on a N N revenue growth forecast + in the tender offer supplement dow jones <unk> the different growth forecasts but says it views the N N growth rate as a <unk> goal of telerate 's management and not as a realistic basis on which to project the company 's likely future performance + telerate shares fell N cents on friday to close at $ N each in new york stock exchange composite trading + dow jones shares also fell N cents to close at $ N in big board composite trading + dow jones has said it believes the $ <unk> price is fair to telerate 's minority shareholders + late last week representatives of dow jones and telerate began negotiations about the terms of the offer but those talks did n't result in any changes in the offer + telerate provides information about financial markets through an electronic network + dow jones which owns N N of telerate publishes the wall street journal barron 's magazine community newspapers and operates financial news services and computer data bases + <unk> manufacturing corp. won a $ N million army contract for <unk> <unk> shell <unk> + avondale industries inc. received a $ N million navy contract for ship spare parts + air & water technologies corp. completed the acquisition of falcon associates inc. a <unk> pa. <unk> concern for $ N million of stock + air & water which provides environmental services and systems paid about N million of its shares for falcon + in american stock exchange composite trading friday air & water closed unchanged at $ N + at july N air & water had nearly N million shares outstanding + the canadian <unk> <unk> totaled N at oct. N down N N from a year earlier said statistics canada a federal agency + <unk> for breeding and <unk> <unk> totaled N down N N from a year ago + <unk> fla. charles bates president chief executive and chief operating officer will resign from these positions and the board effective oct. N + norman j. harrison chairman will succeed him as chief executive + roger l. sutton executive vice president was appointed as the new president and chief operating officer + kerry p. <unk> will become executive vice president and retain his positions as chief financial officer and treasurer + upset over the use of what it says are its exclusive <unk> <unk> angels <unk> corp. is fighting back in court + concord new <unk> corp. <unk> of a N movie called nam angels used the gang 's name and <unk> without authorization the <unk> corporation says in a complaint filed in federal court + nam angels <unk> a group of the cycle gang 's members on a <unk> mission to <unk> nam during the war years + in addition to being broadcast on cable television the movie also is being distributed on <unk> the suit alleges in seeking unspecified damages + also named in the suit is media home entertainment inc. of <unk> city calif. its parent <unk> communications inc. and <unk> television of los angeles holders of the copyright on the movie + a concord spokeswoman called the suit <unk> but declined to comment further + besides being upset with the film 's use of the <unk> angels name and <unk> the angels are angry with their <unk> in the movie + there is absolutely no way our board or membership would have approved the portrayal of the <unk> angels in this movie said george christie president of the club 's <unk> chapter + portrayal of our members as <unk> to each other is totally contrary to the most important values of our organization loyalty and trust + nam angels shows angels fighting with each other and also <unk> them as showing no <unk> when a member is killed + both of these actions are n't characteristic of real <unk> angels mr. christie said + <unk> angels was formed in N and incorporated in N + in addition to N <unk> in the u.s. there are N <unk> in foreign countries + douglas h. miller self-employed in the oil and gas securities business was named chairman of this oil and gas exploration company filling a vacancy + mr. miller who has been a coda director also was named chief executive officer succeeding ted <unk> who remains president and chief operating officer + lawrence m. <unk> jr. president was elected to the additional posts of chairman and chief executive officer of this utility holding company effective feb. N N + the <unk> mr. <unk> who was also elected chairman and chief executive of all <unk> subsidiaries succeeds john a. warren + mr. warren will remain on the company 's board + the american stock exchange said a seat was sold for $ N unchanged from the previous sale oct. N + seats on the amex currently are quoted at $ N bid and $ N asked + the world had a big <unk> recently when the soviets reported a rash of ufo <unk> one of them bringing tall aliens who <unk> in the dark to <unk> + it is the opinion of timothy good author of above top secret the world ufo <unk> <unk> <unk> N pages $ N that the world <unk> too fast + here is a <unk> for ufo watchers complete with pictures of people who say they 've had personal relationships with aliens + one photo shows a woman sporting a <unk> she says was made by a laser beam a <unk> weapon from the looks of the wound + so far anyway our <unk> visitors seem more intent on <unk> our <unk> than <unk> us + mr. good <unk> much serious space to the events of feb. N N when american <unk> spotted strange lights in the sky above los angeles + <unk> <unk> sounded the alarm at N a.m. <unk> N air <unk> to duty + soon all hell broke loose + ground <unk> targeting an odd <unk> of aircraft traveling at highly unusual speeds opened up a <unk> <unk> + the sky filled with <unk> <unk> several of which fell back to earth destroying homes and buildings + when the smoke cleared six people were dead three from heart attacks and everyone <unk> what in the world they were shooting at + mr. good who documents these things as best he can provides an official explanation in the form of a memorandum from chief of staff george c. marshall to president <unk> N pounds of <unk> he wrote his <unk> in chief were <unk> on unidentified aircraft flying at speeds as slow as N mph and <unk> between N and N feet + well thousands of californians on the scene insisted the <unk> had been <unk> aimed at a large <unk> ufo but you will just have to make your own decision about such <unk> + one thing 's for sure there have been a ton of them and greater beings than the editors of the national <unk> have shown interest + gerald ford a fairly <unk> fellow once sent a letter to the chairman of the armed services committee recommending that there be a committee investigation of the ufo phenomenon + i think we owe it to the american people to establish credibility regarding <unk> and to produce the greatest possible <unk> on the subject + <unk> carter went further in a N campaign promise if i become president i 'll make every piece of information this country has about ufo <unk> available to the public and the scientists + i am convinced that <unk> exist because i have seen one + but you know about campaign promises + it still does n't look like governments are <unk> up everything they know + still despite their efforts to convince the world that we are indeed alone the visitors do seem to keep coming and like the recent <unk> there 's often a detail or two that suggests they may actually be a little on the <unk> side + for instance witnesses in <unk> say the <unk> <unk> and their robot friend after <unk> around the city park left behind some rocks + now why you have to ask yourself would <unk> beings haul a bunch of rocks around the universe + or land in russia so often + in a N incident a soviet mail plane disappeared off the radar screen just after <unk> its position to ground control in sverdlovsk + a search party soon found the <unk> aircraft in a forest clearing much too small to have allowed a conventional landing + what 's more the seven mail personnel aboard were missing + again you have to ask the obvious question why would <unk> beings <unk> seven soviet <unk> + speculation as to the nature of aliens will no doubt continue until we wake up one morning to find they 've taken over the today show the way they <unk> an entire town in jack <unk> 's <unk> of the body <unk> <unk> & <unk> N pages $ N + maybe some of our <unk> hosts and <unk> have already been taken over + the point of this N novel which spawned two movies is that the <unk> <unk> people <unk> by <unk> plants are virtually <unk> from human folks + another guy who thinks they 're out there and closing fast is <unk> <unk> whose new novel <unk> <unk> N pages $ N takes a look at a reported N ufo crash near the <unk> army air field in a new mexico desert + mr. <unk> knows a lot about aliens + he even had sex with one sort of and not intentionally as readers learned in his <unk> a book recently described in the new york times as a <unk> best seller + the way mr. <unk> tells it in his <unk> <unk> the intelligence officer who found the craft 's strange debris was forced by the government to call the <unk> <unk> parts of a weather balloon + the apparent crash became top secret and the <unk> creatures went away upset with the <unk> ways of human beings + we lost our chance to <unk> with <unk> visitors about four feet tall who looked as though they were made of <unk> <unk> + mr. <unk> is an editorial writer for the rocky mountain news + trustcorp inc. will become society bank & trust when its merger is completed with society corp. of cleveland the bank said + society corp. which is also a bank agreed in june to buy trustcorp for N million shares of stock with a market value of about $ N million + the transaction is expected to close around year end + when the economy <unk> in the mid-1970s akzo <unk> fell out of bed + <unk> overcapacity in the synthetic fiber business which accounted for half of the dutch chemical company 's sales led to huge losses and left akzo 's survival in doubt + it was n't until the early 1980s that akzo <unk> itself back to health + now as a new downturn in the chemical industry looms akzo says it is in far better shape to cope + investment analysts generally agree + aside from slashing costs and investing heavily in its plants akzo has spent N billion guilders $ N billion on acquisitions since N to give it better balance + during the same period the company has sold about N billion guilders of assets + the fibers business whose products go into <unk> carpeting and <unk> industrial uses now accounts for only N N of akzo 's sales + we have definitely become less cyclical <unk> bergsma executive vice <unk> said in an interview + still akzo has n't yet found a way to achieve another goal a large presence in the u.s. market for prescription drugs + mr. bergsma said prices for u.s. pharmaceutical companies remain too high making it unlikely that akzo will pursue any major acquisitions in that area + but he said akzo is considering alliances with american drug companies although he would n't elaborate + an indication of akzo 's success in <unk> itself will come thursday when it reports third-quarter results + analysts expect the company to show profit of about N million guilders up N N from N million guilders a year earlier + a bigger test will come next year if as many analysts expect bulk chemical prices slump in europe + maybe akzo can surprise the investment world a bit said <unk> <unk> an analyst at <unk> bank <unk> + he figures akzo is likely to be one of the few major chemical companies to show profit growth next year + the bank projects akzo will show per-share earnings of N guilders in N up from an estimated N guilders for this year and the N guilders reported for N + at james capel & co. in london analyst <unk> <unk> notes that akzo is less exposed than many of its rivals to the most volatile chemical products + for example akzo has only minor petrochemical operations is small in plastics and does n't make <unk> + thus while akzo <unk> less than many rivals from the boom of recent years in petrochemicals and plastics it has less to fear from the current slump + the company is exposed to bulk chemicals however + although <unk> prices have begun falling in the u.s. they are generally stable in europe mr. bergsma said + a decline may come in the first half of N he said but the market does n't appear on the verge of a severe downturn + to reduce the danger of such pricing cycles akzo has invested heavily in specialty chemicals which have highly specific industrial uses and tend to produce much higher profit margins than do bulk chemicals + akzo 's biggest move in this area was the N acquisition of <unk> chemical co. 's specialty chemical business for $ N million + in a less glamorous field akzo is the world 's biggest producer of industrial salt used as a raw material for the chemical industry as well as for such tasks as <unk> ice + akzo also makes products derived from salt such as <unk> and <unk> soda + in the fibers division profit remains weak largely because of persistent overcapacity + but akzo is still <unk> down it recently announced plans to eliminate about N <unk> jobs in the netherlands and west germany + although the <unk> and <unk> markets remain mostly bleak akzo has high hopes for some emerging fiber businesses such carbon fibers and <unk> extremely strong fibers used to reinforce tires and metals and to make such products as <unk> <unk> + akzo 's <unk> <unk> fiber is a distant second to du pont co. 's <unk> which dominates the market + mr. bergsma said world-wide industry sales of <unk> fibers are expected to total about $ N million this year + sales growth of N N a year seems possible he said and akzo expects its <unk> business to become profitable in N + akzo also has spent heavily on acquisitions in <unk> auto <unk> and industrial coatings + in august for example it completed the $ N million acquisition of reliance universal inc. a u.s. maker of industrial coatings for wood metals and plastics from tyler corp + mr. bergsma said akzo is likely to see strong profit growth from coatings as it <unk> cost savings and other benefits from its greater scale + for akzo 's drug business where profits have shown <unk> change for the past five years mr. bergsma predicted moderate profit growth + akzo is the leading seller of <unk> pills in europe but is still seeking regulatory approvals to enter that market in the u.s. and japan + mr. bergsma said akzo hopes to have approval to sell its <unk> pill in the u.s. in N + akzo also has small operations in diagnostic tests generic drugs and <unk> products + <unk> products are showing especially strong growth mr. bergsma said + among the leading products is a <unk> shot for horses + we 're sorry to see nigel lawson 's departure from the british government + he is a politician with the <unk> of true conviction as in <unk> <unk> exchange controls and in particular slashing the top rate of income taxation to N N + but in the end his resignation as chancellor of the exchequer may be a good thing especially if it works as he no doubt intends by forcing prime minister thatcher and her counterparts elsewhere to <unk> the genuine intellectual issues involved + the early <unk> we admit <unk> suggest so <unk> an outcome + the fleet street reaction was captured in the guardian headline departure reveals thatcher poison + british politicians divide into two groups of <unk> those with their <unk> cut and those <unk> the sky is falling + so far as we can see only two persons are <unk> with a dignity recognizing the <unk> of the issues mr. lawson and sir alan walters the <unk> of the chancellor 's difficulties who also resigned as personal adviser to mrs. thatcher + the problem is that on the vital issue of monetary policy and exchange rates conservative free-market economists divide into at least three <unk> camps + there are the strict <unk> who believe that floating exchange rates free an economy to stabilize its price level by stabilizing the monetary aggregates + there are the <unk> <unk> who seek to spread the advantages of a common currency through fixed exchange rates + and there are the <unk> <unk> who <unk> <unk> to balance trade flows + this is a problem not only for prime minister thatcher but for president bush as shown in the ongoing <unk> over the dollar between the federal reserve and the mulford treasury + in the british case mr. lawson is the <unk> thing in london to a <unk> <unk> + he not only slashed marginal tax rates initially <unk> fresh growth in britain but he wanted to regulate monetary policy by targeting exchange rates indeed joining the european monetary system + while no doubt agreeing with mr. lawson on everything else sir alan is a <unk> <unk> inclined to defend floating rates to the death + to make matters even more confusing the earlier u.s. experience made clear that mr. lawson 's tax cuts would have <unk> effects on britain 's international accounts and the value of sterling + they increased the after-tax rate of return and made britain a far more attractive place to invest producing sudden capital inflows + by accounting <unk> this had to produce a sudden trade deficit + as in the u.s. it also produced a sudden burst in the demand for sterling that is a surge in the sterling monetary aggregates <unk> + at this point the options were crunch money to stop the boost in the aggregates as sir alan surely advised and forget the soaring pound + to push the pound even lower trying to cure the trade deficit a policy britain has repeatedly proved <unk> + or to supply enough money to meet the increased demand and stabilize the exchange rate as the chancellor argued and ensure the <unk> of this policy by joining the ems + faced with a similar situation paul <unk> let the dollar soar though monetary aggregates also grew so rapidly <unk> issued <unk> warnings of inflation + but this <unk> the u.s. manufacturing sector laying the seeds of <unk> + mr. lawson though not allowed to join the ems chose to shadow the deutsche mark + he <unk> inflation along with rapid growth no doubt <unk> sir alan 's predictions in the prime minister 's mind + but more recently the pound has been falling with high inflation which has also seemed almost <unk> to the high interest rates mr. lawson deployed to stop it + so the british experience presents a genuine <unk> that reaches far beyond the <unk> of <unk> + we had been soliciting opinions on it long before mr. lawson 's resignation and offer some of the collection for the benefit of his successor and one-time deputy john major + to begin with we should note that in contrast to the u.s. deficit britain has been running <unk> budget surpluses + in pursuit of this mystery <unk> <unk> and <unk> <unk> need not apply + we should also add mr. lawson 's own explanation as we understand it + unlike the u.s. britain never achieved even a <unk> reduction in real wages + the wage <unk> which <unk> studies confirm is particularly high in britain gives its economy a structural bias toward inflation + inflation is easier to spark and harder to control + we should also concede that in the british experience the <unk> cause <unk> some of the credibility it lost in the u.s. experience + nearby paul craig roberts a distinguished <unk> with <unk> <unk> argues the case for sir alan + perhaps the fiscal shock of tax cuts is after all best absorbed by floating rates though of course in the event mr. lawson resigned over whether to support a weak pound not restrain a strong one + we recall that mr. roberts not only <unk> the chancellor for being too easy because of a desire to <unk> sterling but also led the chorus saying that mr. <unk> was too tight when he let the dollar rise + somewhere in between there must be a golden mean perhaps measured by <unk> but perhaps measured by purchasing power parity + the <unk> tend to think mr. lawson ran onto technical <unk> + in <unk> rates the choice of initial <unk> is crucial for example and perhaps he picked the wrong <unk> rate + for that matter perhaps he fixed to the wrong currency + we <unk> with mrs. thatcher 's reluctance to tie her currency to one <unk> by the domestic political <unk> of west germany + perhaps the shock would have been less if they 'd fixed to another <unk> <unk> <unk> economy + alan reynolds of <unk> adds his <unk> that the <unk> <unk> <unk> is the budget surplus + those who can shake <unk> ghosts out of their heads might recognize that the retirement of <unk> for cash is equivalent to an <unk> <unk> operation indeed it is the definition of an open market operation to expand the money supply + mr. reynolds also notes that since british banks have no reserve requirements high interest rates are less likely to curb inflation than to cause recession + we would add that in political terms mrs. thatcher 's problem was failing to decide between the chancellor and her adviser + in the end neither policy was followed and instead of learning anything we are left with a mystery + in particular <unk> a currency is anything but <unk> it is an open announcement that the exchange rate target has no credibility + all the more so when strong voices are heard opposing the policy + better to have a true <unk> policy just for the experience + so mr. lawson had to resign + in the end his move was sparked by remarks in <unk> from sir alan 's <unk> in the american economist a <unk> academic journal + but it was the underlying situation that became <unk> + what mr. major and mrs. thatcher will do now remains to be seen + they <unk> <unk> inflation and a sagging economy that is to say <unk> + this can not be solved by <unk> a further downturn reducing the supply of goods does not solve inflation + our advice is this immediately return the government surpluses to the economy through <unk> tax cuts and find some monetary policy target that <unk> both supply and demand for money which neither aggregates nor interest rates can do + this was the version of <unk> economics that in the late 1970s and early '80s worked in america and world-wide to solve a far more serious <unk> than <unk> britain today + ogilvy & mather whose declining profitability prompted its takeover by wpp group earlier this year will see its profit margins bounce back to the N N range in N said graham phillips the agency 's new <unk> + the ad agency 's pretax profit margins were slightly under N N at the time of the takeover according to analysts london-based wpp 's goal is to increase margins to N N + mr. phillips made his comments during an interview detailing his plans for the agency + <unk> the <unk> ogilvy veteran was named last week to succeed kenneth roman who is leaving by year 's end to take a top post at american express an ogilvy client + surrounded by <unk> of paper two computers and photos of himself <unk> and flying mr. phillips laid out several changes he hopes to make at the agency + first and <unk> mr. phillips said he hopes to improve client service + ogilvy under the <unk> mr. roman gained a reputation as occasionally being <unk> in its treatment of clients of <unk> what strategy a client should indeed must follow + and some of its top <unk> executives including mr. phillips were <unk> to the point they were <unk> with administrative duties with little time to see clients + but mr. phillips recently freed himself up to spend more time with clients by <unk> much of his administrative work to a deputy + he also plans to get to know clients that mr. roman was closer to such as <unk> brothers american express and seagram + the two men are planning joint visits to a number of clients to attempt to smoothly hand over the reins + clients want to see more of our senior people involved in the business not once a month but two or three times a week he said + mr. phillips also hopes to finally implement a reorganization announced earlier this year but put on hold by the wpp takeover + the reorganization is supposed to make <unk> shopping buying advertising public relations and design all in one place or ogilvy <unk> in <unk> a reality + under the reorganization ogilvy plans to name one executive on each account as a client service director to work as the client 's single contact for all those services + there is little or no integration of our work quality is <unk> there is no single focus mr. phillips complained to staffers in march when the reorganization was announced + now mr. phillips says he hopes to have the new system in place for several clients including american express american telephone & telegraph and ryder by year 's end + industry executives and analysts are divided on whether mr. phillips is up to the task + he is n't as well-known to clients as is mr. roman + under his watch office <unk> was often rampant in the agency 's new york operation and the office there has had a dismal <unk> record for more than a year + and while last week the agency hired a top <unk> executive bill hamilton to try to bolster its work graham has to get the revenue of that new york office moving says james <unk> an analyst with county natwest securities + the one thing mr. phillips clearly does have going for him is <unk> although it is n't certain if that will be enough + as mr. <unk> says the last thing they need is enormous disruption at the top and graham is obviously a long-term member of the ogilvy mafia as we call it + mr. phillips and mr. roman are indeed quite similar in substance if not in style + while mr. roman is a <unk> <unk> mr. phillips would rather delegate leaving him time for his interests outside the office + mr. roman by contrast seems rarely to cut loose at all although he did appear at ogilvy 's halloween party friday <unk> out in duck feet and a duck hat <unk> as a <unk> duck + mr. phillips said the company 's expected margin improvement will be all but inevitable given that the company 's profitability was dragged down this year by an expensive move to <unk> <unk> new new york headquarters + the move <unk> at about $ N million actually came in at about $ N million he said + but margins will be helped too by some other <unk> steps + ogilvy eliminated the mail room staff closed the executive <unk> room and after the takeover let go half a dozen financial executives + wpp which assumes financial control of its businesses in a <unk> way instituted a new financial system and plans to <unk> some floors in ogilvy 's new headquarters building to outsiders + the fact that the agency will now be part of a u.k. company under british accounting rules will also make the profit picture look better + <unk> 's klein steps down + arthur klein president of young & rubicam 's new york office stepped down temporarily in the wake of charges by a federal grand jury in new haven conn. that he the agency and another top executive <unk> <unk> tourist officials to win its account in N + in an internal memo alex <unk> the agency 's chairman said mr. klein decided to remove himself to minimize negative reaction from prospective clients and others and to prepare for his defense + the fact that he is in the process of defending himself against the present charges could <unk> have an adverse impact on <unk> mr. <unk> wrote + he said mr. klein will return to his post at the end of the trial at which he will be <unk> + mr. klein will work with mr. <unk> on some of the agency 's joint venture activities and acquisitions while the case is pending + peter <unk> president of <unk> 's ad operations will assume mr. klein 's day-to-day role + wells rich 's new partner + wells rich greene named <unk> heller as an executive vice president and creative partner in its image group which <unk> on fashion and <unk> <unk> advertising + ms. heller N had headed up boston agency <unk> a unit of wcrs + the agency with about $ N million in billings will be <unk> with some of its staffers absorbed by wcrs 's della femina mcnamee unit in boston ms. heller said + she said it was too early to say what would happen to its clients including reebok and apple + at wells rich ms. heller will concentrate on accounts that include philip morris 's benson & hedges cigarette brand which relies on print ads ms. heller 's specialty + as previously reported the account is troubled with philip morris asking backer spielvogel bates ogilvy & mather and possibly others to try their hand at developing new creative work + wells rich declined to comment on the status of the account as did the other agencies + waxman industries inc. said holders of $ N face amount of its N N N convertible subordinated debentures due march N N have elected to convert the debt into about N common shares + the conversion price is $ N a share + the company said the holders represent N N of the face amount of the debentures + waxman sells a variety of hardware products for the home repair market + r.h. macy & co. the closely held department store chain said in a financial filing friday that its sales for the fiscal fourth quarter ended july N were up N N to $ N billion against $ N billion a year earlier + comparable store sales for the quarter were up N N + the net loss for the quarter was $ N million against a year-earlier loss of $ N million + the loss in the fourth quarter of N reflected in part expenses for an unsuccessful bid for federated department stores inc. as well as the restructuring of some of its department store operations + for the year sales were up N N to $ N billion compared with $ N billion in fiscal N + sales for both years reflect 12-month performances for each year of i. <unk> bullock 's and <unk> <unk> + macy acquired those three businesses in may N + on a comparable store basis including the new acquisitions for both years sales for fiscal N were up N N + macy reported a net loss for fiscal N of $ N million compared with a net loss of $ N million for fiscal N + the company 's earnings before interest taxes and depreciation which bondholders use a measurement of the chain 's ability to pay its existing debt increased N N in fiscal N to $ N million from $ N million + the $ N million figures includes the new acquisitions + excluding those businesses earnings before interest taxes and depreciation for N would have been $ N million + as of feb. N N the <unk> <unk> stores will operate as i. <unk> stores + altogether macy and its subsidiaries own or lease N department stores and N specialty stores nationwide + although management led a leveraged buy-out of r.h. macy in july N the company still makes financial filings because of its publicly traded debt + the company estimates its total debt at about $ N billion + this includes $ N billion of long-term debt $ N million in short-term debt and $ N million of the current portion of long-term debt + in a letter to investors chairman edward s. finkelstein wrote that he expects the company to benefit from some of the disruption faced by our competitors + while our competitors are concerned with their financial viability and possible ownership changes we will be concentrating on buying and selling merchandise our customers need and want + mr. finkelstein is apparently referring to b. altman and <unk> teller two new york retailers that have recently filed for chapter N bankruptcy protection as well as the retail chains owned by financially troubled campeau corp + those chains include bloomingdale 's which campeau recently said it will sell + other retail properties for sale include saks fifth avenue and marshall field retailers now owned by b.a.t plc the british tobacco conglomerate + in his letter mr. finkelstein also referred to the recent san francisco earthquake + mr. finkelstein flew to san francisco the day after the earthquake and found that N to N of his company 's stores had sustained some damage including the <unk> of most windows at the i. <unk> store on union square + the volume and profit impact on our fiscal first quarter will not be positive but looking at the whole fiscal year we do n't see the effect as material wrote mr. finkelstein + rjr nabisco inc. said it agreed to sell its baby ruth <unk> and <unk> candy businesses to nestle s.a. 's nestle foods unit for $ N million + the sale at a higher price than some analysts had expected helps the food and tobacco giant raise funds to pay debt and boosts nestle 's N N share of the u.s. candy market to about N N + the candy businesses had sales of about $ N million last year which was roughly N N of total revenue for rjr 's <unk> <unk> unit according to a memorandum distributed by rjr 's owner kohlberg kravis roberts & co. to bankers last december + the nestle acquisition includes a candy plant in franklin park ill. which employs about N workers + the sale which had been expected is part of kkr 's program to pay down $ N billion of a $ N billion bridge loan by february + roughly $ N billion of that debt has already been repaid from previous asset sales and rjr expects to use another $ N billion from the pending two-part sale of most of its del monte unit + that sale however could still fall through if financing problems develop + thus it remains crucial for rjr to obtain top dollar for its smaller assets like the candy brands + louis <unk> jr. chairman and chief executive officer of new york-based rjr called the sale a significant step in the company 's divestiture program as well as a a strategic divestiture + since kkr bought rjr in february for $ N billion of debt it has agreed to sell nearly $ N billion of rjr assets + rjr 's executives have said they will <unk> with certain brands in particular that are n't leaders in their markets + rjr nabisco and <unk> <unk> will concentrate more on our own core businesses mr. <unk> said friday + baby ruth and <unk> are both among the <unk> N <unk> bars in the u.s. but rjr 's overall share of the roughly $ N billion market is less than N N + nestle 's share of N N before friday 's purchases is far below the shares of market leaders <unk> foods corp. and <unk> inc. which have about N N and N N of the market respectively + this means nestle is now in the <unk> business in a big way said <unk> <unk> publisher of <unk> <unk> <unk> magazine + for them it makes all kinds of sense + they 've been given a mandate from switzerland to expand their u.s. <unk> operations + nestle s.a. is based in <unk> switzerland + the new candy bars make an important contribution to our nestle foods commitment to this very important strategic unit said c. alan macdonald president of nestle foods in purchase n.y + aetna life & casualty co. 's third-quarter net income fell N N to $ N million or $ N a share reflecting the damages from hurricane hugo and lower results for some of the company 's major divisions + catastrophe losses reduced aetna 's net income by $ N million including $ N million from hugo + last year catastrophe losses totaled $ N million when net was $ N million or $ N a share + the year-earlier results have been restated to reflect an accounting change + the insurer has started processing claims from the northern california earthquake nearly two weeks ago + but because these claims are more difficult to evaluate and have been coming in more slowly the company has no estimate of the impact of the earthquake on fourth-quarter results + in new york stock exchange composite trading friday aetna closed at $ N down N cents + in the latest quarter aetna had a $ N million loss on its <unk> line compared with earnings of $ N million last year + profit for its commercial insurance division fell N N to $ N million reflecting higher catastrophe losses and the price war in the property\/casualty market for nearly three years + however aetna 's employee benefits division which includes its group health insurance operations posted a N N profit gain to $ N million + third-quarter results included net realized capital gains of $ N million which included $ N million from the sale of federated investors in august and a $ N million tax credit + in the nine months net rose N N to $ N million or $ N a share from $ N million or $ N a share last year + out of the <unk> of <unk> are coming words of <unk> + here at a <unk> stadium near the black township of <unk> yesterday were eight leaders of the african national congress seven of whom had spent most of their adult lives in prison for sabotage and conspiracy to <unk> the government + here were more than N anc supporters gathering for the first anc rally inside south africa since the black liberation movement was banned in N + here was the state security <unk> poised to <unk> on any words or acts of <unk> let alone revolution + but the words that <unk> over the <unk> <unk> messages of peace unity negotiation and discipline + we stand for peace today and we will stand for peace tomorrow said walter sisulu the anc 's former secretary general who along with five of his colleagues served N years in prison before being released two weeks ago + some members of the huge crowd shouted <unk> peace <unk> + these are <unk> times in south african politics + the government and the anc the <unk> of enemies are engaged in an elaborate <unk> dance designed to <unk> each other to the negotiating table + pretoria releases the anc leaders most of whom were serving life sentences and allows them to speak freely hoping that the anc will abandon its use of violence + the anc leaders speak in <unk> of <unk> <unk> discipline hoping the government will be encouraged to take further steps such as <unk> nelson <unk> the most prominent anc figure and <unk> the organization + the government of president <unk> de <unk> is using this situation to improve its international image and head off further economic sanctions + meanwhile the many organizations inside the country that back the anc are taking the opportunity to regain their strength and <unk> their supporters even though the state of emergency which has severely curtailed black opposition remains in force + the result is that the <unk> and <unk> are happening + six months ago government approval for an anc rally was <unk> + equally <unk> is that the anc given the chance to hold a rally would extend a hand <unk> <unk> to the government + in a message read out at the rally <unk> anc president oliver <unk> who ca n't legally be quoted in south africa said the country was at a <unk> and that mr. de <unk> may yet earn a place among the <unk> of our country if he chooses a path of genuine political settlement + still this does n't mean that either the government or the anc is changing <unk> or that either has moved significantly closer to the other + the government may ease repression in some areas but it still keeps a tight grip in others + for instance it releases mr. sisulu without conditions yet his son <unk> a newspaper editor is restricted to his home much of the day and is n't allowed to work as a journalist + the anc <unk> to keep up pressure on the government + <unk> yesterday called on foreign governments to increase sanctions against pretoria and urged supporters inside the country to continue <unk> emergency restrictions and racial <unk> known as apartheid + we can not wait on the government to make changes at its own pace mr. sisulu said + because the anc remains banned both the government which approved the rally and the <unk> who <unk> it denied it was an anc rally + they both called it a welcome home gathering + nevertheless an anc rally by any other name is still an anc rally + the recently released leaders sat high <unk> a <unk> in one section of the stadium stands + behind them was a huge anc flag and an even bigger sign that said anc lives anc leads + next to them was the red flag of the outlawed south african communist party which has long been an anc ally + in the stands people <unk> anc flags wore anc <unk> sang anc <unk> and <unk> anc <unk> + today said mr. sisulu the anc has captured the center stage of political life in south africa + as a police helicopter <unk> overhead mr. sisulu repeated the anc 's demands on the government to create a climate for negotiations release all political <unk> <unk> lift all bans and restrictions on individuals and organizations remove all troops from the black <unk> end the state of emergency and cease all political trials and political executions + if these conditions are met he said the anc would be prepared to discuss <unk> its guerrilla activities + there can be no question of us <unk> abandoning the armed struggle he said + to date we see no clear indication that the government is serious about negotiations + all their <unk> are vague + <unk> a phrase from mr. de <unk> mr. sisulu said let all of us who love this country engage in the task of building a new south africa + when westinghouse electric corp. <unk> its massive steam <unk> plant in <unk> pa. three years ago it seemed like the company had pulled the plug on its <unk> power generation business + but now westinghouse is enjoying a <unk> in demand for both steam and combustion <unk> and may even join the growing <unk> of independent electric producers + and with its new venture with japan 's mitsubishi heavy industries ltd. announced last week it is poised to <unk> growing markets overseas + for the first time since the mid-1970s westinghouse this year has seen a significant increase in orders for power plants + most are from independent producers instead of regulated utilities and westinghouse believes it will ride a wave of demand stretching over the next six years + analysts agree predicting that the revived market could significantly boost westinghouse 's bottom line in coming years + westinghouse 's earnings could be <unk> enhanced in the mid-1990s or sooner says russell l. <unk> of salomon brothers inc + the company expects a need for N <unk> of new generation in the u.s. over the next decade + already this year it has received orders for four <unk> advanced combustion <unk> from florida power & light co. and for two <unk> plants from <unk> energy corp. among others + westinghouse 's own role as a supplier also is changing + in the past the company usually took <unk> equity positions in power plants it supplied as a <unk> to close deals + but last june 's <unk> that westinghouse would put up all of the $ N million to build a new <unk> plant could herald a new age + westinghouse 's plant will provide electrical power to the southern california edison co. and backup power and steam to the u.s. <unk> & chemical co + we have n't decided on a strategy yet but we could become an independent producer depending on whether we 're the developer or just the supplier says <unk> stern executive vice president of the company 's energy and utility systems group + at the same time westinghouse hopes its venture with mitsubishi will help fend off growing competition particularly in the u.s. from such european competitors as asea brown boveri ag siemens ag and british general electric co + under the agreement westinghouse will be able to purchase smaller combustion <unk> from its japanese partner and package and sell them with its own <unk> and other equipment + westinghouse also jointly will bid on projects with <unk> giving it an edge in developing asian markets + in addition the two companies will develop new steam <unk> technology such as the plants ordered by florida power and even <unk> each other 's plants at times to take advantage of currency fluctuations + even though we 'll still compete against mitsubishi we can also work jointly on some projects and we 'll gain a lot of <unk> flexibility mr. stern contends + the <unk> venture was designed as a <unk> transaction <unk> any possible antitrust concerns + westinghouse carefully <unk> the agreement because the justice department earlier this year successfully challenged a proposed steam <unk> joint venture with asea brown boveri + it is expected that the current surge in demand for new power will be filled primarily by independent producers which unlike utilities are n't regulated and therefore do n't need government approval to construct new plants + westinghouse expects about half of its new orders for <unk> to come from independent producers for at least the next six years + despite <unk> of the company 's <unk> and east pittsburgh plants the company believes it has sufficient capacity to meet near-term demand with its much smaller and more efficient manufacturing facilities in north carolina + still westinghouse acknowledges that demand from independent producers could <unk> if prices for fuel such as natural gas or oil rise sharply or if utilities which have been pressured by regulators to keep down rates are suddenly freed to add significant generating capacity + even if that scenario occurs westinghouse figures it is prepared + the company already is <unk> up for a renaissance of nuclear power even though it has n't received an order for a domestic nuclear plant in a decade + john c. marous chairman and chief executive officer says he expects a commercial order by N for the company 's <unk> nuclear power plant which is under development + once we see an order we expect it 'll be on line by N + among the things i learned covering the world series these past few weeks is that the richter scale which measures earthquakes is n't like the one in your <unk> + a quake that measures two on the richter is n't twice as severe as a one it 's N times worse + a three is N times N again and so on + that put the seven of oct. N in perspective for me + think i 'll buy one of those i survived <unk> after all + by <unk> standards the show that the oakland athletics put on friday and saturday nights in putting a <unk> swift end to the game 's longest short series rated somewhere between a N and an N + the boys with the white <unk> on their <unk> might not have made the earth move much but they certainly did some impressive things with <unk> + the pale <unk> propelled six of <unk> out of the unfriendly <unk> of candlestick park during the two games en route to N and N wins over the san francisco giants + combined with their two <unk> victories way back on oct. N and N the scores were N and N remember that gave them a sweep of the <unk> series + the joke here is that the giants lost by de fault + that 's <unk> correct but a <unk> unfair otherwise + they showed up but did n't or could n't challenge + they led for <unk> an inning in the four games and managed to stir their fans only once + that came in the seventh inning of game four when <unk> N they scored four times and brought their big heat will clark and kevin mitchell to the plate with one out and a <unk> on + but clark <unk> out to short right field and mitchell 's drive to left was caught on the warning track by <unk> henderson as N sets of <unk> <unk> as one + i went out to <unk> burns the a 's <unk> and told him that we were n't <unk> <unk> let this guy beat us said oakland <unk> terry <unk> of the decisive confrontation with mitchell the national league 's <unk> <unk> king + i told him to make mitchell reach for everything and that 's what we did + the ball he hit was n't a strike + if it had been he <unk> hit it out + but if the a 's had n't won in four they would have prevailed in five or six or seven + the best team won this series which is more unusual than it may sound + baseball ai n't football where the good teams beat up on the bad ones + the best baseball teams win six of N games and the worst win four of N + without becoming overly contentious allow me to suggest that several recent <unk> of the world according to us as in u.s. might not have ranked no. N in many polls + that list includes last season 's <unk> the los angeles <unk> who rode a <unk> home run by kirk <unk> and two <unk> pitching performances by <unk> <unk> to a <unk> <unk> over a <unk> bothered oakland crew + these a 's however got few grades as low as b on their N report card + they led the major <unk> in regular-season wins with N and <unk> the toronto blue <unk> four games to one for the american league <unk> before <unk> their <unk> rivals + the <unk> testimony to their domination of the <unk> <unk> came from giants ' manager roger craig after his team had fallen in game three to a <unk> <unk> that tied a <unk> series record + asked what he would do differently on the <unk> craig allowed that he might play his <unk> deeper maybe on the other side of the <unk> + the a 's offensive showing in the series got an a as in <unk> + their N total bases broke a record for a four-game set and their nine home runs tied one + eight oakland players hit <unk> with <unk> dave henderson getting two both on friday + <unk> henderson the <unk> <unk> man had nine hits and set or tied four-game series marks for <unk> N and stolen bases N + the sole a not to homer was cleanup <unk> mark <unk> their regular-season leader with N and he contributed five hits plus a <unk> <unk> play on a ground ball in game three that stopped a giant rally while the issue still was in doubt + think i 'll <unk> my image get this changed to a <unk> <unk> the big first <unk> saturday night <unk> the gold bat he wears on a neck chain + even with that power show though the oakland series ' star certified by the most valuable player award was a <unk> dave stewart + he shut out the giants on five hits in game one and allowed three runs on five hits in seven <unk> friday after the <unk> break caused by the earthquake + stewart 's honor was a nice note on a couple of grounds + one was that despite his N regular-season wins over the past three seasons in the land beyond the late news he has been <unk> by his <unk> <unk> and missed out on prizes that might have been his due + the other is that he 's an oakland native and lifted residents ' spirits by his visits to <unk> areas last week + afterward as the a 's <unk> their victory with beer they <unk> with traditional champagne <unk> in <unk> to the quake victims stewart said he thought his <unk> ring would <unk> his individual <unk> + give me four or five more series with these guys and i do n't care if i ever win a <unk> young he said in reference to baseball 's <unk> award + indeed the possibility of an a 's ring cycle <unk> a <unk> was a major topic of <unk> discussion saturday so much so that <unk> <unk> the team 's general manager felt obliged to <unk> it + people change teams change he cautioned + it 's easier to get worse than better in this game + he might have added an interesting historical fact the last series sweep by the cincinnati <unk> came in N which also was the first year of baseball player free agency + it was widely predicted that free agency would allow the glamorous big market teams to <unk> the best talent but quite the opposite has occurred twelve different clubs have won titles in the N seasons since its advent + the number includes such <unk> <unk> as well oakland + the rationale for responding to your customers ' needs faster than the competition can is clear your company will benefit in terms of market share customer satisfaction and profitability + in fact managers today are probably more aware of speed as a competitive <unk> than ever before + however for many managing speed does not come naturally + most of us grew up <unk> in the <unk> <unk> makes waste and do n't cut corners ideas that seem to run counter to the concept of managing speed says dean <unk> vice president for product integrity at grumman corp + but in the real world you learn that speed and quality are not a <unk> + speed is a component of quality one of the things we must deliver to satisfy customers + companies that actually market speed as part of their service train their managers to lead and participate in teams that increase speed and improve quality in everyday operations + managers learn to spot opportunities to increase customer satisfaction through speed and shift some responsibility for analyzing improving and streamlining work processes from themselves to teams of employees + one team at the federal express ground operations station in <unk> mass. focused on a particularly <unk> operation the morning package sort + every morning <unk> trucks arrive at the <unk> ground station from boston 's <unk> airport carrying the day 's package load + in peak periods that load may include N pieces + the packages must be <unk> quickly and distributed to smaller vans for delivery so <unk> can be on the road by N + no customer is present at the morning package sort but the process is nevertheless critical to customer satisfaction + we 're committed to deliver the customer 's package by a stated time usually N notes glenn <unk> a federal express <unk> who led the <unk> team + the sooner our vans hit the road each morning the easier it is for us to fulfill that obligation + following a <unk> formula used by teams throughout federal express members of the <unk> team monitored their morning routine carefully noting where and when the work group 's resources were used effectively and where they were idle waiting for others <unk> in the process to send packages their way + we suspected there was <unk> built into our process + but we did n't know just where it was until we completed our data gathering mr. <unk> says + we used the data to <unk> our <unk> system and put our resources where they could do the most good + the team even created a points system to identify those <unk> and <unk> that were doing the most to reduce <unk> cycle time + winners of the friendly competition earn a <unk> dinner out with their spouses + monitoring shows that the <unk> team 's new system really does reduce cycle time for the morning package sort reports james <unk> chief operating officer at federal express + the vans leave at least N minutes earlier on average than they used to + and service levels have increased to the point where they 're consistently above N N + a <unk> team at union carbide 's <unk> n.y. facility which produces <unk> plants followed a similar path to reduce manufacturing cycle time + the team included <unk> from the shop floor as well as engineering scheduling and purchasing personnel reports alan <unk> director of quality + first they produced a <unk> detailing the process by which an <unk> plant actually gets built + then they identified <unk> in the process + the <unk> team determined that <unk> for <unk> were the main problem and identified which kinds of delays involved critical <unk> and which were less critical or could be handled by workers already on the line + the team then proposed modifications in their work process to management + the <unk> manufacturing process benefits our customers in at least two ways mr. <unk> concludes + first we have better quality assurance than ever because the people building the product have taken on more responsibility for the quality of their own work + second we trimmed more than a month off the time required to deliver a finished product + at grumman 's aircraft systems division a <unk> team reduced the cycle time required to produce a new business proposal for an important government contract + the team was composed of representatives from engineering manufacturing corporate estimating flight test material quality control and other departments + we needed contributions from all these departments to generate the proposal says carl <unk> <unk> manager for grumman 's <unk> combat aircraft program + but instead of gathering their input <unk> we formed the team which reached consensus on the proposal objectives and produced a statement of work to guide all the functions that were involved + armed with this shared understanding and <unk> background information each department developed its specialized contribution to the proposal <unk> data and cost estimates on a closely managed schedule + we cleared up questions and <unk> very quickly because the people who had the skills and perspective required to resolve them were part of the task team mr. <unk> explains + the team trimmed more than two months from the cycle time previously required to develop comparable proposals + the team eliminated the crisis mentality that proposal deadlines can generate + the result was a more <unk> complete and competitive proposal mr. <unk> concludes + the successes achieved at federal express union carbide and grumman suggest that managing speed may be an <unk> source of competitive advantage + managers in all three companies recognize speed as a component of quality and a key to customer satisfaction + they effectively lead team efforts to reduce cycle time + and they prepare all their people to increase the speed and improve the quality of their own work + mr. <unk> is president of <unk> a consulting firm in burlington mass + home taping of <unk> music cuts into record industry revenues but banning home taping would hurt consumers even more + that 's the conclusion of an independent report prepared by the office of technology assessment at the request of the house and senate judiciary committees + the report is to be released today + the report says the availability of such advanced <unk> recording equipment as <unk> recorders does n't seem to increase the quantity of home copying + that finding the report says <unk> doubt on the record industry 's <unk> that the new generation of digital recording equipment will inevitably lead to wholesale abuse of <unk> material by home <unk> + the longstanding position of the recording industry association of america a trade group based in washington d.c. is that record companies performers <unk> and music publishers need to be <unk> by <unk> fees on the sale of blank tapes and recording equipment to make up for royalties lost to home taping + i think it is a <unk> in the <unk> in any royalty tax proposal says gary shapiro vice president for government and legal affairs of the electronic industries association in washington + what the report shows is everything we 've been saying for the past eight or nine years that audio taping is the best thing to happen for the recording industry + the people who tape the most buy the most + <unk> <unk> a <unk> for <unk> says her organization has n't received a copy of the completed report yet and has no immediate comment + a recent agreement between the recording industry and electronics manufacturers requires that any digital audio tape or <unk> recorder sold in the u.s. have a <unk> device that restricts its ability to make second copies from <unk> tape copies of digital compact disks + but the disappointing sales of <unk> machines here and abroad so far have not seemed to warrant the three years of legal <unk> that went into the agreement + under current copyright laws it is considered fair use to <unk> <unk> material for one 's personal use or for use by one 's family or friends while copying for purposes of resale or profit is prohibited + a survey contained in the <unk> report copyright and home copying technology challenges the law found that most people consider home copying for such personal use a right a right moreover that was exercised by N N of americans over the age of N in the past year + the study says that the <unk> legal status of home copying makes it appropriate to examine the effects on consumers as well as on industry + reports by the office of technology assessment do n't <unk> any specific legislative action but suggest a range of options that congress may pursue + the study also says that advent of new communications technologies makes an explicit congressional definition of the legal status of home copying more desirable in order to reduce legal and market uncertainties and to prevent de <unk> changes to copyright law through technology and says that finding an appropriate balance of <unk> and benefits is a political decision not a technical one + switzerland 's most famous raider says he is n't one + werner k. rey believes fortunes are made by being friendly + and in little more than a decade of being friendly and at the same time <unk> the <unk> swiss business community with some <unk> <unk> and dealing the <unk> mr. rey has grown from a modest banker to a billionaire + he achieved this in part with an <unk> talent for getting his foot <unk> in the door of established european companies + his latest coup september 's <unk> of the five billion <unk> $ N billion merger between <unk> s.a. the world 's second-largest temporary employment agency and <unk> international s.a. a <unk> <unk> company + shareholders must approve the merger at general meetings of the two companies in late november + but approval is almost certain since mr. rey and a friendly <unk> management are in control + after the transaction mr. rey estimates the value of his N N stake in the new company to be held by his omni holding ag will be about N billion swiss francs + this will be his return on an original investment of between N million swiss francs and N million swiss francs + mr. rey bought a controlling stake in <unk> for N million swiss francs in N building up the <unk> engineering company with european and u.s. acquisitions + i like to succeed says mr. rey during a recent morning of working at home which he also likes + home is an estate with green <unk> opening onto lake geneva and a <unk> house whose rooms <unk> the water and offer a view of the french <unk> + in the corner of his reception room is a delicate <unk> desk <unk> high with <unk> + there is a small <unk> on the wall + <unk> magazine <unk> lists mr. rey as having a fortune of about N billion swiss francs + writes <unk> no one in switzerland ever came so far so fast + he was simply the first in this country to realize that <unk> were just lying around waiting to be picked up + in short rey found companies with weak earnings but rich assets + however the swiss financial press in general as well as many analysts have had a hard time making up their minds about mr. rey and his <unk> ways + for switzerland 's most prestigious newspaper <unk> <unk> <unk> mr. rey seems <unk> to remain the former bally raider an image that has proved hard to overcome + in N as an <unk> in the eyes of switzerland 's establishment mr. rey laid the foundations of his <unk> <unk> with an <unk> <unk> on bally the country 's traditional <unk> + sitting <unk> a banker at a <unk> in london where he was working as a financial consultant he learned that a large <unk> of bally 's shares was up for sale + looking into bally he could hardly believe what he saw a company with enormous real-estate holdings in major european cities and a market capitalization of N million swiss francs it had N employees + investing four million swiss francs earned from his financial transactions and two million swiss francs from his parents and his wife mr. rey acquired N N of bally 's shares + but such tactics were <unk> to switzerland in N and still are n't common because of share restrictions that companies are allowed to maintain + eventually mr. rey was forced to sell his bally shares to the weapons maker <unk> holding ag as establishment pressure grew on this hostile move into the swiss old boys ' network + mr. rey made N million swiss francs on the sale + bally was not an unfriendly takeover he insists + buying from willing shareholders makes an unfriendly takeover impossible mr. rey contends + i bought from willing shareholders + nevertheless mr. rey has been very careful since then to make sure his moves are welcome + and he has worked to shed his raider image + in N his career as an <unk> began with the acquisition of the swiss metals works <unk> based in <unk> + with the <unk> metals business undermined in switzerland by tough foreign competition and high domestic costs this looked like a <unk> undertaking + but mr. rey brought about a merger in the next few years between the country 's major producers the increased efficiency has <unk> up the industry + three years later machinery producer <unk> de <unk> <unk> de <unk> s.a. was to become part of the rey empire + once again the company 's future looked less than <unk> + but after restructuring under new management the profits began rolling in + a major boost to mr. rey 's respectability among the swiss came in N when he sold N N of his <unk> bank to the conservative swiss <unk> banks + they renamed it swiss <unk> and are using it to expand abroad + in N mr. rey <unk> leading publishing houses to take over switzerland 's jean <unk> ag a major producer of magazines and newspapers + and with the recent acquisition of N N of <unk> machinery manufacturer <unk> <unk> ag mr. rey has enjoyed the status of white knight + <unk> preferred him to financier <unk> <unk> whose <unk> <unk> on the company 's stock had led to a bitter battle + meanwhile as such strategic investments have mounted the <unk> arm of mr. rey 's omni holding has been <unk> buying and selling dozens of companies often after a financial or corporate restructuring + today this branch of mr. rey 's empire runs under the name <unk> offering services and handles mergers and acquisitions placement of securities and real estate + in its portfolio are such diverse companies as united <unk> air europe <unk> inc. a u.s. company that makes supermarket <unk> machines <unk> industries a u.s. manufacturer of securities systems <unk> systems inc. a u.s. regional telephone company and major real-estate projects in the u.s. and europe + for financial analysts reading omni 's accounts is a tough challenge + companies move in and out says <unk> <unk> of <unk> swiss investment + financial analysts note that mr. rey is attracted to companies that are undervalued on the basis of their real-estate interests + in august omni unexpectedly bought <unk> 's N N stake in <unk> ag of west germany a <unk> company + the internal transaction within the rey empire <unk> <unk> 's small shareholders but analysts say it makes sense for <unk> to focus on its main businesses of product inspection and temporary help + mr. rey says the move is yet another example of his <unk> + he explains that companies with real estate give security + the real estate can be used he points out as guarantees for bank loans for corporate development + he says he wants to influence but not manage companies + i do n't want to be like financier alan bond and the other <unk> + i do n't want companies to be built around me as a person + i want them to stand alone + ultimate corp. signed a letter of intent to market hewlett-packard co. minicomputers the companies said + ultimate expects the N 1\/2-year agreement to generate $ N million in sales but it would n't estimate profit + under terms of the pact ultimate a <unk> concern will market the full line of <unk> N series N <unk> minicomputers + hewlett-packard is based in palo alto calif + in the second step of a reorganization that began earlier this year boeing co. said it will create a defense and space group to consolidate several divisions + meanwhile boeing officials and representatives of the machinists union met separately last night with a federal mediator in an attempt to break the <unk> strike that has shut the aerospace giant 's assembly lines at a time when it has an $ N billion backlog of jetliner orders + the two sides were scheduled to meet with the mediator this morning + machinists already have rejected a package that would provide a N N pay raise plus bonuses over the three-year life of the contract + boeing has said repeatedly it wo n't expand its offer and the machinists have responded that the offer is n't good enough + however the resolve of some of the striking N machinists might be weakening + about N <unk> signed <unk> last week calling for boeing and machinists representatives to schedule new meetings + the two sides had n't met since oct. N + while boeing 's commercial business is booming its military business is feeling the effects of a declining defense budget after a strong buildup during the reagan presidency + in may the company consolidated its aerospace and electronics groups the new defense and space group will contain the aerospace and electronics division and advanced systems both based in the seattle area boeing <unk> in philadelphia boeing military airplanes in wichita kan. and <unk> in sunnyvale calif + b. dan <unk> president of boeing aerospace and electronics will become president of the new group which will become operational jan. N + in addition boeing said it also will <unk> all its work in wichita into military and commercial divisions + all of the changes will reduce its overhead and streamline operations boeing said + analysts agreed + it 's a further step to better returns in the hemorrhaging defense business said steven <unk> an analyst with bear stearns & co. in new york + they had to do it + howard <unk> an analyst with <unk> lawrence morgan grenfell inc. in new york said the shift reflects boeing confidence in mr. <unk> described by mr. <unk> as an expert on doing business with the military + his side of the business has been successful in a tough environment mr. <unk> said + a two-day meeting of representatives of cocom the <unk> group that oversees exports of sensitive goods to communist countries did n't take any <unk> decisions on trimming the list of items under controls + nor did it ease restrictions on exports to poland and hungary according to u.s. officials who attended the talks + the u.s. had been under pressure from several cocom members especially france west germany and italy to ease restrictions on some types of machine tools which those countries argued were now widely available to east bloc countries from <unk> members + for several years some european countries have complained that <unk> cocom lists and restrictions served more to <unk> their trade than to add to western security + some countries also have been pressing for special treatment for hungary and poland as they move toward more democratic rule just as special treatment had been agreed on for china + but u.s. officials said representatives at the meeting decided that this was a matter for further discussion at future meetings + they added that all of us cocom members look at the changes in hungary and poland in a positive way but a question of this scope deserves further discussion and study + the officials also said the meeting agreed to continue treating china as a special case despite the recent repression of dissent there but to offer no further concessions + the u.s. officials said that despite the rapid changes under way in eastern europe and the soviet union all the cocom members agreed on the continuing need for this organization which was founded N years ago at the start of the cold war + the officials said the meeting agreed to continue working toward streamlining cocom 's restricted products list and to improve procedures for <unk> companies that do n't comply with the export restrictions + the officials said this meeting put in motion procedural steps that would speed up both of these functions but that no specific decisions were taken on either matter + unisys corp. 's announcement friday of a $ N million loss for the third quarter showed that the company is moving even faster than expected to take write-offs on its various problems and prepare for a turnaround next year + at the same time the sheer size of the loss coupled with a slowing of orders made some securities analysts wonder just how strong that turnaround will be at the computer maker and <unk> concern + unisys is getting clobbered + just clobbered said <unk> weil an analyst at weil & associates who had once been high on the company + the quarter was terrible and the future looks anything but encouraging + unisys whose revenue inched up N N in the quarter to $ N billion from $ N billion in the year-earlier quarter had an operating loss of about $ N million + on top of that the blue bell pa. concern took a $ N million charge related to the layoffs of N employees + that is at the high end of the range of N to N employees that unisys said a month ago would be laid off + unisys said that should help it save $ N million a year in costs again at the high end of the previously reported range of $ N million to $ N million + the company also took a write-off of $ N million to cover losses on some fixed-price defense contracts as some new managers took a hard look at the prospects for that <unk> business + in addition unisys set up an unspecified reserve apparently $ N million to $ N million to cover the minimum amount it will have to pay the government because of its involvement in the <unk> scandal + unisys also noted that it paid $ N million in taxes during the quarter even though tax payments normally would be minimal in a quarter that produced such a big loss + the tax payments will leave unisys with $ N million in loss <unk> that will cut tax payments in future quarters + in addition unisys said it reduced computer inventories a further $ N million during the quarter leaving it within $ N million of its goal of a reduction of $ N million by the end of the year + still unisys said its european business was weak during the quarter a worrisome sign given that the company has relied on solid results overseas to overcome weakness in the u.s. over the past several quarters + the company also reported slower growth in another important business systems that use the unix operating system + that would be a huge problem if it were to continue because unisys is betting its business on the assumption that customers want to move away from using operating systems that run on only one manufacturer 's equipment and toward systems mainly unix that work on almost anyone 's machines + in addition unisys must deal with its increasingly <unk> debt load + debt has risen to around $ N billion or about N N of total capitalization + that means unisys must pay about $ N million in interest every quarter on top of $ N million in dividends on preferred stock + jim <unk> unisys 's president said he is approaching next year with caution + he said the strength of the world-wide economy is suspect and does n't see much revenue growth in the cards + he also said that the price wars <unk> up in parts of the computer industry will continue through next year + he said the move toward standard operating systems means customers are n't locked into buying from their traditional computer supplier and can force prices down + that he said is why unisys is <unk> its whole business it needs to prepare for a world in which profit margins will be lower than computer companies have been used to + we 've approached this not as a response to a temporary condition in the industry but as a fundamental change the industry is going through mr. <unk> said + the <unk> industry is still going to be a <unk> business and we 're confident that we have tremendous assets as a company + but we do n't minimize the challenges of the near term + securities analysts were even more cautious having been burned repeatedly on unisys this year + some had predicted earnings of more than $ N a share for this year up from last year 's fully diluted $ N a share on earnings of $ N million + but the company said friday that it had losses of $ N million through the first nine months compared with earnings a year earlier of $ N million or $ N a share fully diluted as revenue inched up N N to $ N billion from $ N billion + and unisys is expected to do little better than break even in the fourth quarter + so steve <unk> at first boston said he is cutting his earnings estimate for next year to $ N a share from $ N + i was feeling like i was too high to begin with he said + mr. weil of weil & associates said he will remain at $ N a share for next year but said he <unk> whether even that low target is at risk + the break-even point for next year is much lower but is it low enough he asked + reflecting the concern unisys stock fell a further N cents to $ N in composite trading friday on the new york stock exchange + if a tv <unk> gets <unk> facing the camera again after a questionable forecast donald h. straszheim surely understands + the chief economist of merrill lynch & co. finds himself in such a position as he <unk> the midwest on his first road trip since <unk> on a major prediction + mr. straszheim expects he will take some heat and he 's right + since the last time he traveled this way several months ago he has <unk> a series of bold forecasts of a recession + in february N for example merrill lynch 's weekly commentary announced that the economy is likely to fall into recession in early N + the forecasts were widely <unk> and in a <unk> ad campaign launched in the summer of N merrill lynch urged investors to buy bonds + it said long-term interest rates then above N N could drop to N N by the end of N so bonds which benefit from falling rates would be a good buy + the firm also raised the percentage of bonds in its model portfolio from N N to N N and later to N N + but this september just when many market economists including some at merrill lynch believed that mr. straszheim was about to be proved right he took a <unk> if not a <unk> + he <unk> the talk about a recession + now in fact he is predicting economic growth of N N this year and N N next year a more optimistic outlook than the consensus of some four dozen top <unk> surveyed by blue chip economic indicators newsletter + and just recently merrill lynch cut the recommended <unk> back to N N + while such changes might sound minor they are n't merrill lynch manages or oversees some $ N billion in retail accounts that include everything from mutual funds to individual annuities + two well-known colleagues who believe mr. straszheim was right the first time are david <unk> jr. and a. gary <unk> both of whom run their own new york research firms + mr. <unk> said in august that his <unk> index signaled recession + mr. <unk> who was merrill lynch 's chief economist from N to N has <unk> a recession for months + my own personal opinion is that don threw in the towel just about the time he should have doubled his bet he says + now a rocky stock market and weak corporate profits may further threaten the economy + and mr. straszheim conceded after a recent drop in manufacturing jobs that it may prove to be the case that we got <unk> that we pulled the recession forecast at just the wrong time + he adds that 's the forecasting business + however risky the business it 's brisk these days + <unk> by bosses brokers clients and media people and pushed by their own <unk> wall street economists are forecasting about everything from broad economic trends to the <unk> monthly indicator + but the surprisingly durable seven-year economic expansion has made <unk> of more than one forecast + this is n't the quiet economic science practiced in the universities + this is the commercial version + carrying the new message on the road mr. straszheim meets confrontation that often occurs in <unk> proportion to the size of the client + no sophisticated professional expects economists to be right all the time + some smaller clients do n't seem to notice his switch + but with some clients the talk can heat up a bit + dennis o'brien the treasurer of commonwealth edison co. in chicago <unk> a <unk> approach waiting for an opportunity to ask about the forecast + a good half-hour into breakfast at the palmer house mr. o'brien looks up from his plate after mr. straszheim says something about people who believe interest rates are about to <unk> + i 'm one of them who hope they will with $ N billion in debt on the books + is that the forecast mr. o'brien asks trying to <unk> down the economist + he does n't fully succeed although mr. straszheim lists an array of interest-rate scenarios + in a <unk> conference room at alliance capital management in minneapolis in contrast the firm 's money managers seem ready to <unk> mr. straszheim to the wall + alfred harrison the manager <unk> mr. straszheim 's <unk> back at him do we want to go through this + or can we ask you why you changed your forecast just when it 's about to be right + <unk> in his chair mr. straszheim replies that the new outlook though still weak does n't justify calling a recession right now + it 's all in this <unk> you do n't want to look at + we could still have a recession at some point + one of mr. straszheim 's <unk> themes is that the state of the economy is n't a simple black or white + sometimes like now it 's gray + this <unk> assessment moves one alliance portfolio manager to ask so what is this a <unk> recession + another challenges merrill lynch 's bond recommendation last year + we 're not running that ad campaign any more mr. straszheim <unk> in a rare show of <unk> + he adds i think it was a fairly decent call + explaining his change of mind mr. straszheim says later it 's hard to <unk> this on one factor + he says the economy and especially the employment numbers look much better than he expected interest rates have generally declined inflation has n't run <unk> + our business is constantly looking at all these things he says + his new forecast calls for a soft landing + and it may be right judging from last week 's report that inflation-adjusted gross national product rose at a N N annual rate in the third quarter + mr. <unk> understands mr. straszheim 's problems + there 's <unk> pressure on economists to forecast these numbers he says + you make a forecast and then you become its prisoner + it is indeed hard to back away from a widely publicized forecast and mr. straszheim is <unk> with the <unk> on this trip + his approach to the <unk> is direct but <unk> + for some time we had forecast negative third and fourth-quarter growth + we pulled that forecast he begins <unk> in a meeting with <unk> <unk> & <unk> inc. officials in minneapolis the first stop + crane co. said it holds an N N stake in milton roy corp. an <unk> maker and may seek control of the company + crane a maker of engineered products for aerospace construction defense and other uses made the disclosure in a securities and exchange commission filing + in the filing crane said that in the past it considered seeking control of milton roy of st. <unk> fla. through a merger or tender offer and that it expects to continue to evaluate an acquisition from time to time + crane officials did n't return phone calls seeking comment + crane holds N milton roy shares including N bought from sept. N to thursday for $ N to $ N each + in new york stock exchange composite trading friday milton roy shares leaped $ N to $ N each while crane sank $ N to $ N a share + john m. <unk> chief financial officer of milton roy said the company has no comment on crane 's filing + milton roy recently <unk> off unsolicited <unk> from <unk> <unk> corp. a <unk> mass. maker of <unk> products + milton roy disclosed in may that it was approached for a possible acquisition by <unk> <unk> which agreed to purchase milton roy 's <unk> line for $ N million in february + <unk> <unk> acquired some N N of milton roy 's common stock before throwing in the towel and reducing its stake in early september + <unk> group began raising its milton roy stake in july and holds N N according to a recent sec filing + it has n't made merger <unk> to the board + earlier this month milton roy signed a letter of intent to acquire automated custom systems inc. orange calif. and its sister operation environmental testing co. in <unk> <unk> + the companies are <unk> concerns + under the terms milton roy will pay an initial $ N million for the operations and additional payments during the next four years based on the earnings performance of the businesses + in the nine months milton roy earned $ N million or $ N a share on sales of $ N million + last week the british displayed unusual political <unk> + the chancellor of the exchequer nigel lawson resigned because prime minister thatcher would not fire her trusted adviser sir alan walters + the opposition labor party leader neil <unk> in a display of the male <unk> typical of the british lower class denounced mrs. thatcher for having an independent mind and refusing to <unk> the men in her cabinet + the british press making a mountain out of a <unk> <unk> an unnecessary economic crisis by portraying mrs. thatcher as an <unk> who had thrown economic policy into confusion by driving a respected figure from her government + behind the silly <unk> lies a real dispute + mr. lawson and his <unk> colleagues want the british pound formally tied to the west german mark + sir alan considers this an <unk> and costly policy + as there is an effort to <unk> the dollar either to gold or other currencies the dispute is worth <unk> + until his resignation mr. lawson had been conducting british monetary policy as if the pound were tied to the mark + when mrs. thatcher cut the top tax rate to N N mr. lawson flooded the country with money to prevent the pound from rising against the mark + as a result he <unk> the inflation that mrs. thatcher through a long and costly effort had subdued + with inflation surging the pound began falling against the mark + to keep the exchange rate pegged mr. lawson tightened monetary policy and pushed interest rates up to N N + this doubled the mortgage interest rates of the many new homeowners that mrs. thatcher 's policies had created producing widespread <unk> and pushing labor ahead in the polls + instead of <unk> his mistake in letting the exchange rate dominate both british economic policy and mrs. thatcher 's political fortune mr. lawson pushed for <unk> the pound formally to the mark by entering the european monetary system which subordinates all member currencies to german monetary policy + this put mrs. thatcher in a <unk> + the concept of european integration is one of those grand schemes that appeal to intellectuals the media and the <unk> but are full of practical <unk> + if the pound had been tied to the mark the british would have been unable to cut their <unk> tax rates + the reason is simple + when a country cuts tax rates it makes itself more attractive to investors and drives up the value of its currency + it was fear of disturbing ems exchange-rate relationships that caused the <unk> government in france to be <unk> about cutting tax rates + <unk> <unk> the finance minister at the time was sold on the <unk> policy but was concerned that his government would be criticized as <unk> for disturbing the linked european currency relationship + the price of attracting capital whether one 's own or that of foreigners is a trade deficit + to avoid this deficit mr. lawson inflated the pound in order to prevent its rise + this <unk> policy could not prevent a british trade deficit + consequently mr. lawson <unk> mrs. thatcher with a record trade deficit renewed inflation and high interest rates three political failures in a row + little wonder that mrs. thatcher 's opponents were so anxious to keep mr. lawson in office + it is extraordinary that the british treasury thought it could prevent a trade deficit by <unk> the pound + the british <unk> statistics show that after the top tax rate was cut to N N the flow abroad of british capital slowed to N billion pounds $ N billion at the current rate in N from N billion pounds in N + this change in the british capital account required an offsetting change in the trade account a change that could not be prevented by <unk> the currency + nigel lawson was a victim of the <unk> confusion in thought that has been characteristic of western financial circles during the 1980s + the most important governments have ignored the role of low tax rates in attracting real capital investment instead <unk> financial flows in response to high interest rates + this has led them in a <unk> and <unk> policy circle + first comes monetary expansion to drive down the currency 's value that was pushed up by <unk> reduction + then when the currency falls interest rates are raised to attract financial flows in order to stabilize the exchange rate + this policy is totally <unk> and sir alan is correct to point out its deficiencies + britain and all of europe need to reconsider the prospects for european integration in light of the possible reunification and <unk> of germany + a unified germany that remained within the western alliance would give germany such an <unk> position that all other members of a unified europe would become <unk> of the german state + unless the soviet union <unk> german reunification is likely to require germany 's <unk> + the implications for britain france and the rest of europe of having their currencies tied to the economic policy of a neutral country need considering before we judge mr. lawson 's resignation to be unfortunate + in the least we must recognize the <unk> of trying to use exchange-rate intervention to offset the effects of <unk> reduction on capital flows + mr. roberts was assistant treasury secretary under president reagan + joseph p. jordan N years old becomes president chief executive officer and a director of the bank company + mr. jordan formerly president and chief executive of <unk> national bank in <unk> n.y. succeeds donald broderick who died at N in an automobile accident + personal spending which fueled the economy 's growth in the third quarter was clearly slowing by the end of the period raising questions about the economy 's strength as the year ends + personal spending grew N N in september to a $ N trillion annual rate the commerce department said + it was the smallest monthly increase in a year + at the same time personal income was held down by the effects of hurricane hugo which <unk> through parts of north and south carolina in late september + the department said personal income rose N N in september to a $ N trillion rate but would have climbed N N had it not been for the storm + among the economic effects of the hurricane was a sharp drop in rental income + the figures came a day after the government released a report showing that consumer spending propelled u.s. economic expansion in the third quarter while on an inflation-adjusted basis business investment slowed government spending declined and exports were flat + but the new statistics show that by september the burst in spending seemed to be <unk> off + many economists expect the weakness to continue + i think the consumer has pretty well played himself out said david <unk> senior economist at manufacturers national bank of detroit + i do n't think there 's a lot in the wings in other sectors of the economy to keep growth above N N he said + in the third quarter the economy grew at a moderate N N annual rate + in august personal income rose N N and spending grew N N + analysts have attributed much of the summer 's <unk> in spending to bargain car prices at the end of the model year + car sales <unk> in september after the N models were introduced + according to the commerce department report spending on durable goods items expected to last at least three years including cars declined by $ N billion + the nation 's savings rate was unchanged in september at N N of after-tax income far below the N N it reached in july + all the figures are adjusted for seasonal variations + here is the commerce department 's latest report on personal income + the figures are at seasonally adjusted annual rates in <unk> of dollars + <unk> ltd. said it agreed to sell a N N stake in its <unk> coal mine in the state of new south <unk> to mitsubishi development <unk> of japan + the price was n't disclosed + the agreement is subject to government approval + <unk> acquired the <unk> coal mine oct. N when it bought british petroleum co. 's australian coal interests for $ N million + <unk> said then that it was looking for a partner for the mine which produces more than three million metric tons of coal a year + <unk> is <unk> by <unk> corp. of britain + control data corp. which just months ago was hemorrhaging financially thinks it will be healthy enough soon to consider <unk> public debt + moreover the company whose <unk> approach nearly proved fatal now sees alliances with others as the way back to prosperity in what it calls the data solutions business + i 'm not saying everything is <unk> but we have completed the transition robert m. price chairman and chief executive said in an interview + transition is a reference to the company 's five-year restructuring effort + during that time control data had losses of more than $ N billion + now following asset sales that shrank revenue by more than one-third this year alone control data is flush with cash + so its senior executives are talking openly about possibly buying back some of the company 's $ N million in subordinated convertible debentures next year + we 'd like to continue to reduce debt president lawrence perlman said + noting that the company is offering to buy back $ N million in senior notes paying N N N he said the response will help determine future <unk> efforts + the offer was automatically triggered by the recent sale of control data 's <unk> disk-drive business to seagate technology inc + mr. perlman who is also acting chief financial officer and the <unk> favorite to become the next chief executive said the company is <unk> modest positive cash flow from operations and we expect that to continue into N + he said the company has no intention of <unk> its short-term bank lines for a good part of N + sometime next year control data will develop a new bank relationship mr. perlman said + in recent months a group of lenders led by bank of america has extended control data up to $ N million in revolving loans through january as well as $ N million in <unk> letters of credit + loan <unk> require that the company achieve specified levels of operating earnings and meet a rolling <unk> profitability test + last week control data reported third-quarter earnings of $ N million or N cents a share on revenue of $ N million + through the first nine months the company had a loss of $ N million largely reflecting the closing of its supercomputer unit + while a few assets are still being <unk> including the sports and entertainment <unk> portion of the company 's <unk> unit mr. price said future restructuring would be a question of strategy + we do n't need the cash + <unk> 's automated <unk> business which operates <unk> in a half dozen states is not for sale the company said + rather mr. perlman said control data intends to bid for the coming minnesota <unk> contract and is seeking new applications for the technology overseas where there is great interest in games of <unk> + he would n't elaborate + control data 's semiconductor business <unk> inc. continues to lose money the executives acknowledged but they said they consider some of the technology vital to national defense and so are reluctant to <unk> of it + the company 's strategy for keeping its computer products business profitable it recently achieved profitability after several quarters of losses calls for a narrow focus and a lid on expenses + partly costs will be held down through strategic technology alliances management said + control data recently announced an agreement with mips computer systems inc. to jointly develop machines with <unk> operating software + james e. <unk> computer products group president said such arrangements could help slash control data 's computer research and development costs in half by the end of N + he disclosed that before control data scrapped its <unk> systems inc. supercomputer business this past spring those costs were running at nearly N N of group revenue + at the same time four of six design projects were <unk> he said + asked how the company hopes to expand its computer hardware business mr. <unk> said it sees good opportunities in systems integration + we think we 're getting only N N of the integration dollars our customers are spending he said + we 're in environments that are going to spend a lot of money on that + control data mainframes are designed for <unk> intensive computing users such as the scientific engineering and academic communities + utilities management is a major commercial niche + reviewing the company 's <unk> with disaster mr. price conceded it had tried to do too much on its own + absolutely he said + but while its stock is selling at about half control data 's estimated breakup value neither messrs. perlman nor price said he spends much time considering the possibility of a hostile takeover + we 've been listed as a candidate for so long it 's not worth worrying about said mr. price + well the arrogant east coast media have spoken again going for the green editorial oct. N + having <unk> in the great state of california for the past seven years i find it hard to ignore our environmental problems when i start my commute to work with eyes <unk> and head <unk> from the <unk> air when i try to enjoy the <unk> and come home covered with <unk> and oil when i hear of numerous deaths related to irresponsible processing of <unk> and use of chemicals in fruit growing + perhaps it 's entertaining for those like you to discount the concerns of environmentalists suggesting that their <unk> initiatives are <unk> and referring to so many citizens as <unk> activists + strange that we do n't hear similar criticisms of the east coast activists who seek to clean up boston harbor or rid their <unk> of medical waste + while there are no easy low-cost solutions simply ignoring our problems will result in their <unk> increasing and spreading throughout the state the nation and the world + if nothing else such initiatives as these will provide an awareness to citizens and lawmakers and encourage appropriate <unk> action + before your next <unk> editorial please spend more time out here <unk> the situation it just may change your view + john barry <unk> calif + i realize you were just looking for something <unk> to say about california and its environmental movement but picking frank lloyd wright to say it for you was a bad call + wright 's organic architecture demonstrated a keen <unk> to the environment decades before it became fashionable among <unk> activists + indeed wright said all his life that the greatest <unk> he learned were derived from the study of nature + obviously it 's lost on you that about N N of the american people these days and in fact the president of the united states consider themselves environmentalists + as for california being a state run by liberal environmental <unk> let 's not forget where ronald reagan came from + perhaps mr. reagan who claimed that air pollution is caused by trees is the man you should be <unk> to back up your position that economics is more important than the earth + but it was frank lloyd wright who said is this not <unk> + the <unk> that knows no god but more + robert <unk> santa <unk> calif + your editorial was <unk> and neatly matched by the readers ' comments in letters to the editor <unk> scaring on the side of caution + the <unk> and <unk> of john h. adams 's comments for the national resources defense council fully justifies your <unk> of california 's greens in particular as <unk> activists + we may all hope that california 's voters will <unk> the scientific realities that their own university 's <unk> prof. tom <unk> provides them and ignore the <unk> <unk> by their wealthy hollywood <unk> + i have a different approach to offer not only to californians but to all americans + in a free country the law should restrict citizens as little as is consistent with good <unk> and public safety + would-be <unk> should have the burden of proving reasonable necessity when they urge a prohibition for enactment into law + w. brown <unk> jr warsaw va + the N airlines in the international air transport association last year posted group net profit of $ N billion on revenue of $ N billion + according to the association 's annual report scheduled to be released today in warsaw <unk> members have n't posted such a strong performance since the late 1970s + revenue last year increased by more than N N over N and net income nearly tripled from restated year-earlier net of $ N million + the group attributed the strong results to the favorable economic climate rising demand for air travel and improved average yield revenue received per ton of traffic <unk> a <unk> + <unk> <unk> airlines carried N million passengers last year N N more than in N + but <unk> the distance <unk> while carrying people increased N N in N + the association said that lack of airport and air space capacity is the biggest problem facing the airline industry + the kgb has abolished a unit known for <unk> <unk> the government newspaper <unk> said + the newspaper quoted kgb chairman <unk> a. <unk> as saying the definition of <unk> crimes had narrowed the laws had changed and people no longer have to fear a simple slip of the <unk> + mr. <unk> was quoted as saying that in place of the <unk> <unk> <unk> a new unit would work to <unk> the <unk> of foreign intelligence services to create and use organized <unk> groups in our country + czechoslovakia has restricted <unk> exports to neighbor countries because of massive buying out of food by tourists from poland hungary and the soviet union the <unk> <unk> daily said + rising inflation in poland and hungary makes <unk> food clothing and shoes relatively cheap for visitors from these countries + the paper gave no details of what the restrictions would <unk> but said the measures were necessary to protect the domestic market + west germany 's biggest union ig metall said it is ready to back demands for more pay and shorter hours with strikes against the nation 's automotive steel and engineering industries + its chairman told the union to prepare for the worst in next year 's confrontation with employers over a new three-year wage deal + a major goal is to cut the working week to N hours from the present N + last week came news of alarm in venice over a plan to tap gas fields off the city 's coast + now comes word from a scientist that over the next century venice will sink nearly three times faster than the present rate because of the greenhouse effect + global warming means higher <unk> which will lower venice by another N inches in the next N years giovanni <unk> of the the new venice consortium said + the consortium of scientists and companies was set up by italy to help preserve the <unk> city of <unk> + venice has <unk> N inches in this century + west germany 's <unk> said it will establish a mail-order operation with two local partners in the soviet union next year + saying this is a first for a western company west germany 's largest mail-order group said the newly established <unk> <unk> company is scheduled to begin operations in february N + <unk> will initially only send the textile and clothing section of the <unk> catalog translated into russian to soviet customers who have access to convertible currency + the european community commission has imposed provisional <unk> duties on imports of south korean <unk> <unk> sets + saying that a surge in <unk> imports had damaged ec producers ' profits and led to job losses the commission imposed a duty of N N on tvs made by daewoo a duty of N N on <unk> co. N N on <unk> and N N on tvs made by other south korean producers + the commission said that ec television producers lost important market shares and suffered an <unk> pressure on prices because of the korean companies ' marketing and pricing policies which it said were in clear violation of international trade rules + in other news concerning south korea 's television industry <unk> signed an agreement with <unk> the <unk> organization of the soviet union to swap korean television sets and videocassette recorders for <unk> iron from the soviet union + south korea and the soviet union have no diplomatic relations but exchanged trade offices earlier this year + sri <unk> where more than N people have died in six years of ethnic turmoil said it will ban sex and violence from state-owned television next year + many programs we have now come from the west and are not suitable to our culture a government minister said + a star attraction on the national network is the u.s. 's <unk> + a poll of south koreans showed overwhelming opposition to efforts to curb <unk> consumption just because it <unk> foreigners + broad inc. said it doubled its regular quarterly dividend to five cents a share from N cents on common and to N cents a share N cents on class b stock payable nov. N to holders of record nov. N + the financial services company emerged from the restructuring of <unk> & broad inc. which spun off its <unk> subsidiary into <unk> & broad home corp. earlier this year and changed its name to broad inc + for the <unk> fiscal year ended sept. N chairman eli broad said he expected earnings results to <unk> analysts ' estimates which the company said have been revised upward to N cents a share + this would compare with an estimated loss of N cents a share for the comparable N months last year which included restructuring costs + if this battle were a movie the producers would be fighting over two scripts with nothing but an opening scene in common + in the <unk> sony corp. would agree to buy columbia pictures entertainment inc. in a transaction valued at close to $ N billion + shortly after that sony would offer to buy guber-peters entertainment co. for $ N million and offer its <unk> peter guber and jon peters the chance to run columbia + mr. peters would fly to new york with the intention of telling warner communications inc. chairman steven j. ross that guber-peters planned to end its five-year contract to produce movies exclusively for warner + that 's where the two scripts would <unk> + in affidavits filed in los angeles superior court in connection with the $ N billion <unk> suit warner brought against sony for hiring the two producers mr. guber and mr. peters tell one story + warner tells another + in the affidavits mr. peters says he was shocked when mr. ross refused a meeting and made it clear he would stop them + mr. peters claims he reminded mr. ross that robert daly and terry semel the top executives of the warner brothers studio had repeatedly agreed that we had every right to accept an offer such as sony 's + in response mr. peters says mr. ross referred to his colleagues at warner with an <unk> and said tell them that they do n't have a job + you can take them with you + warner denies mr. ross ever said any such thing and in fact denies virtually everything mr. guber and mr. peters say in their affidavits + tomorrow warner will file another batch of documents <unk> that the <unk> of everything these guys are saying is basically lies says warner 's chief outside counsel stuart <unk> + thursday a judge is scheduled to rule on warner 's motion seeking to block the guber-peters duo from going to columbia + the battery of legal documents filed in the past week in connection with the suit provide a <unk> into the inner workings of this hollywood <unk> + but they also make it clear that the first thing a judge will have to decide is which if any version of events in this <unk> is <unk> and which fact + the matter may never even be tried in court + warner says that what it really wants is for the producers to fulfill their <unk> obligations but the <unk> of this battle and the accusations flying on both sides make it unlikely that the <unk> relationship between warner and its two most <unk> producers can ever be repaired + warner which is in the process of <unk> with time warner inc. says it is willing to settle the matter out of court + so far however sony has n't been willing to meet its considerable financial demands + mr. guber and mr. peters do n't have much to gain from a <unk> battle + sony for its part could decide that the cost of a warner settlement or court fight is too high choosing instead to find someone else to run columbia although that too would be costly given the financial arrangement already guaranteed to mr. guber and mr. peters + in that case mr. guber and mr. peters might not suffer financially but they would be left without their dream job of running a studio and with a considerably <unk> relationship with warner + at the center of any court fight will be the <unk> <unk> of the written contract between warner and the two producers but other <unk> issues will play a big role + sony and the guber-peters team are hanging much of their case on warner 's willingness last year to release the producers from another contract and on an oral agreement they say allowed them to terminate the current written contract if the opportunity to run a major studio came up + warner denies such an agreement was made and disputes the guber-peters version of virtually every telephone call and meeting the two sides had on the matter + just how <unk> the relationship has become is clear from the <unk> versions of the two sides ' current business dealings + mr. guber and mr. peters say in their affidavits that warner already is taking steps to freeze them out of their projects at warner notably the <unk> <unk> film <unk> and cash + mr. peters says in his affidavit that the movie 's staff was told last week that warner was taking over the picture and another producer would be giving all of the orders + over his objections mr. peters says the film 's release date was moved up by many months to december and plans for a <unk> worth millions of dollars were dropped + <unk> de la <unk> an editor on the film backs mr. peters in a separate sworn declaration + mr. de la <unk> says warner brothers production president mark canton called him oct. N and said mr. peters is off the picture + if he calls you up just tell him everything is fine + the editor also says the new producer on the film bruce <unk> told editors to screen the picture without telling stars <unk> <unk> and kurt russell or mr. peters + the less they know the easier it is for us + if someone asks just lie and tell them it will be done mr. de la <unk> says mr. <unk> told them + that says warner 's mr. <unk> is a total N N lie + the movie he says is in its <unk> stages of cleaning up the film + he says mr. peters and mr. guber as the <unk> producers with <unk> rights have been invited to <unk> and to give their input on the film + dozens of guber-peters staffers are still working on the warner lot and consulting on various projects on a daily basis the attorney says + mr. guber in his affidavit says that when he advised warner president terry semel of the sony offer at lunch on sept. N mr. semel <unk> and <unk> me and expressed <unk> that we had finally realized our long-term <unk> of running and having an equity position in a major entertainment company + mr. guber says he brought to lunch a release document warner had agreed to in N when he and mr. peters made an aborted bid to buy part of mgm\/ua entertainment co. to run the mgm studio + mr. guber says he had crossed out mgm with a red <unk> and written in columbia giving the document to mr. semel + mr. semel said absolutely nothing to indicate warner would have any <unk> to our assuming management positions at columbia mr. guber says + mr. semel in his affidavit does n't mention any <unk> or <unk> + he says he told mr. guber he could n't sign any documents and that the deal although apparently a good one for him and mr. peters would have a very negative impact on warner + he said he would contact mr. ross and warner brothers chairman robert daly and that in a conference call the three agreed they could n't let the producers out of their contract + mr. ross in his own affidavit says he and mr. daly instructed mr. semel to tell the producers warner would n't terminate their agreement + mr. guber says that mr. semel did convey that information and that mr. semel said mr. ross was crazy because of the time deal meaning mr. guber says that mr. ross did not want to <unk> to his new merger partner time inc. that warner 's agreements provided for our departure under these circumstances + mr. guber also says in his affidavit that mr. daly told us that even if sony did not want us warner 's relationship with us already was <unk> damaged that there was no way to put the egg together and that it would sue sony for tons of money + moreover mr. guber claims mr. semel told him that mr. ross probably would n't object if it were anybody other than sony + but sony is a problem + the guber-peters side has said warner is particularly concerned about the prospect of a huge japanese company controlling important segments of the u.s. entertainment business + some in hollywood suggest mr. guber and mr. peters took encouragement from warner studio executives such as mr. semel and mr. canton too literally + according to this theory warner executives hoping to strengthen their relationships with the producers encouraged mr. guber and mr. peters in their ambitions to build a major entertainment company + but the warner executives in their affidavits deny ever telling the producers they could get out of their written contract + mr. <unk> the warner attorney says the studio still wants the producers to come back and fulfill their contract + they are like a <unk> they have N projects in development for warner he says + but mr. guber indicates in his affidavit that not all of the projects will be used + for example he says that since N he and mr. peters have developed over N movie projects and warner has passed or chosen not to produce at least N + as for the projects remaining at warner mr. guber says mr. semel informed me that warner 's producers have already started a feeding frenzy for our projects + <unk> <unk> co. said it has acquired a georgia cable television company and a massachusetts publishing firm + terms on both deals were n't disclosed + the media company said it purchased cable usa inc. a privately held cable television system in <unk> county ga. a suburb of atlanta + the system is still under construction and will serve a market of N homes + the company also has acquired <unk> publishers and distributors inc. a family owned producer and distributor of educational materials in <unk> mass + despite politicians ' <unk> about the federal budget the government ended fiscal N with a $ N billion deficit about the same as the two previous years + even white house budget director richard darman had trouble finding a silver <unk> in the report + i <unk> you could say the good news is that the deficits are not heading up he said but you ca n't be satisfied with deficits at this level and we 're not + the federal deficit was $ N billion in N and $ N billion in N + the N deficit would have been nearly $ N billion larger had the government been able to spend as much as congress intended on cleaning up the thrift industry before the year ended on sept. N + because the resolution trust corp could n't spend the money fast enough the savings-and-loan outlays were pushed into fiscal N + nevertheless the N deficit still exceeded the $ N billion target set by the gramm-rudman deficit-reduction law by $ N billion a reminder of that law 's <unk> + the law sets a deficit target of $ N billion for fiscal N + a <unk> fight over cutting capital-gains taxes has slowed the progress of N deficit-reduction legislation almost to a halt triggering across-the-board spending cuts under the gramm-rudman law + the white house and the democratic leadership in congress blame each other for turning capital-gains taxes into such a divisive issue this year + neither side showed any sign of retreating + meeting with reporters friday mr. darman again said he would rather live with across-the-board spending cuts than accept a deficit-reduction bill like the one passed by the house which would increase spending in future years + <unk> the size of the deficits of the past few years the treasury report showed that for the first time interest paid on the public debt $ N billion exceeded spending on social security the single largest government program + in all federal outlays amounted to $ N trillion in N up N N from the previous year the treasury said + federal revenues rose N N to $ N billion + the treasury said a surge in tax receipts noted earlier in the year did n't turn out to be quite as strong as it first appeared + the treasury marked up its forecast by $ N million in july but that proved to be about $ N billion too optimistic + the government ran a deficit of $ N billion in september compared with a surplus of $ N billion in september N + outlays for the month totaled $ N billion up from $ N billion a year earlier + the increase reflects spending on the s&l rescue as well as payroll and social security checks normally issued in october that were issued in september this year because oct. N fell on a sunday + revenues were $ N billion up from $ N billion a year earlier + cms energy corp. said it would begin paying a <unk> quarterly dividend the company 's first since N + consumers power co. now the main unit of cms energy ran into financial problems over its $ N billion midland nuclear plant which was abandoned as a nuclear facility in N because of construction delays and high costs + cms is nearly done converting the midland plant to a <unk> <unk> facility at a cost of $ N million + cms management said thursday that they planned to recommend paying a modest dividend when the board of directors met friday + the dividend will be paid nov. N to shares of record nov. N + the company suffered a loss of $ N million in N but its financial situation has been improving since then + humana inc. said it expects to receive about $ N million in federal income-tax refunds and interest from a court ruling on a tax dispute + the health-care company said it expects the refund to be included in the first quarter ending nov. N + the refund is about $ N million + accrued interest on the refund was about $ N million as of oct. N + the refund stems from a court ruling that found certain payments by humana subsidiaries to its insurance subsidiary during fiscal N through N were deductible as premiums for liability insurance + polly peck international inc. 's agreement to acquire N N of sansui electric co. proves that foreign companies can acquire japanese companies if the alternative for the japanese company is <unk> + polly peck a fast-growing british conglomerate will pay N billion yen $ N million for N million new shares of sansui a well-known maker of <unk> audio equipment that failed to adjust to changing market conditions + japanese government officials eager to <unk> foreign criticism of japanese investments overseas hailed the transaction as proof foreigners can make similar investments in japan + polly peck 's chairman <unk> <unk> <unk> the official japanese view of the accord which was announced friday + the <unk> that japan is not open to concerns from outside has i think been <unk> at a <unk> mr. <unk> said + but analysts say sansui is a special case + it expects to post a loss of N billion yen for the year ending tomorrow and its liabilities currently exceed its assets by about N billion yen + if you find sound healthy companies in japan they are not for sale said george <unk> a <unk> at tokyo-based asia advisory services inc + statistics on acquisitions by foreigners vary in detail because unlike sansui which is listed on the tokyo and osaka stock exchanges most of the japanese companies acquired by foreigners are privately held + but by all accounts foreign companies have bought only a relative handful of japanese companies this year while japanese companies have acquired hundreds of foreign companies + nor do analysts expect the sansui deal to touch off a fresh wave of foreign purchases + if the strong yen and the high stock prices of japanese companies were n't <unk> enough <unk> of <unk> between friendly japanese companies and fiercely independent japanese corporate attitudes <unk> most would-be <unk> + usually when a japanese company is ready to sell it has few alternatives remaining and the grim <unk> of sansui 's directors at a joint news conference here left little doubt that this was not the company 's <unk> hour + sansui was once one of japan 's premier makers of expensive high-quality stereo gear for <unk> + but in recent years the market has moved toward less expensive <unk> sets <unk> <unk> and <unk> and software players that could be <unk> on top of each other + some of sansui 's fellow <unk> companies such as <unk> co. and pioneer electric corp. responded to the challenge by quickly bringing out <unk> products of their own by moving heavily into the booming compact disk businesses or by diversifying into other <unk> fields including laser disks or portable <unk> players + sansui was late into the <unk> business and failed to branch into other new businesses + as the yen soared in recent years sansui 's <unk> financial problems became a vicious circle + while competitors moved production offshore in response to the sagging competitiveness of japanese factories sansui lacked the money to build new plants in southeast asia + our company has not been able to cope very effectively with changes in the marketplace said <unk> <unk> sansui 's president + but even a japanese company that looks like a dog may turn out to be a good investment for a foreign concern some management consultants maintain + <unk> <unk> a management consultant for <unk> & hamilton japan inc. said his firm will likely be recommending acquisitions of japanese companies more often to foreign clients in the future + attitudes toward being acquired are still negative but they 're becoming more positive mr. <unk> said + in some industries like pharmaceuticals acquisitions make sense + whether polly peck 's acquisition makes sense remains to be seen but at the news conference mr. <unk> <unk> with <unk> that he can turn sansui around + sansui he said is a perfect fit for polly peck 's electronics operations which make <unk> videocassette recorders <unk> and other products on an original equipment maker basis for sale under other companies ' brand names + he said polly peck will greatly expand sansui 's product line using sansui 's engineers to design the new products and will move sansui 's production of most products other than sophisticated audio gear offshore into polly peck 's own factories + whatever capital it sansui needs so it can compete and become a totally global entity capable of competing with the best in the world that capital will be <unk> mr. <unk> said + and while polly peck is n't <unk> the <unk> <unk> structure of sansui it is bringing in a former toshiba corp. executive as executive vice president and chief operating officer + such risk taking is an everyday matter for the <unk> mr. <unk> who is N N owner of polly peck as well as its chairman + he took polly peck once a small fabric <unk> and used it at as a base to build a conglomerate that has been doubling its profits annually since N + in september it announced plans to acquire the <unk> business of rjr nabisco inc. 's del monte foods unit for # N million $ N million + last month polly peck posted a N N jump in pretax profit for the first half to # N million from # N million on a N N rise in sales + <unk> s. <unk> in london contributed to this article + the bolstered cellular agreement between bellsouth corp. and lin broadcasting corp. carries heightened risks and could fail to fend off mccaw cellular communications inc. the rival suitor for lin + moreover the amended pact shows how mccaw 's <unk> has pushed lin and bellsouth into a corner forcing huge debt on the proposed new company + the debt estimated at $ N billion could mortgage the cellular company 's future earning power in order to <unk> some lin holders in the short term + the plan still calls for lin to combine its cellular telephone properties with bellsouth 's and to spin off its broadcasting operations + but under new terms of the agreement announced friday lin holders would receive a special cash dividend of $ N a share representing a payout of about $ N billion shortly before the proposed merger + lin said it expects to borrow the money to pay the dividend but commitments from banks still have n't been obtained + under previous terms holders would have received a dividend of only $ N a share + in addition new york-based lin would exercise its right to buy out for $ N billion the N N equity interest of its partner metromedia co. in a new york cellular franchise + that money also would have to be borrowed + in effect mccaw has forced lin 's hand by bidding $ N billion for the stake earlier this month + we 're taking on more debt than we would have liked to acknowledged michael <unk> lin 's vice president and treasurer + although he expressed confidence that the proposed new company 's cash flow would be sufficient to cover interest payments on the debt he estimated that the company would n't be profitable until N or later + analyst estimate the value of the bellsouth proposal at about $ N to $ N a share + they value mccaw 's bid at $ N to $ N a share + the previous bellsouth pact was valued at about $ N to $ N a share + mccaw the largest provider of cellular telephone service in the u.s. already owns about N N of lin 's stock + in response to bellsouth 's amended pact the <unk> wash. company extended its own offer to buy N million lin shares for $ N apiece which would give mccaw a N N controlling interest + over the weekend mccaw continued to call for an auction of lin + analysts said they expect mccaw to <unk> the bidding again + this game is n't over yet said joel d. gross a vice president at donaldson lufkin & jenrette securities corp + at some point it will become <unk> for one company + but i do n't think we 're at that point yet + under its revised proposal atlanta-based bellsouth would have a N N interest in the new cellular company and would be responsible for half of its debt + to <unk> the pact further and to ease concerns of institutional investors bellsouth added a provision designed to give extra protection to holders if the regional bell company ever decides to buy the rest of the new cellular company + the provision described as <unk> protection would require bellsouth to pay a price equivalent to what an outside party might have to pay + mccaw 's bid also has a similar clause + only mccaw 's proposal requires the company to begin an auction process in june N for remaining shares at <unk> prices + to <unk> shareholders concerned about the long-term value of the company under the <unk> agreement bellsouth also agreed to pay as much as $ N a share or $ N million if after five years the trading value of the new cellular company is n't as high as the value that shareholders would have realized from the mccaw offer + we 're very pleased with the new deal + we did n't expect bellsouth to be so responsive said frederick a. <unk> president of <unk> asset management inc. which holds N lin shares + bellsouth 's <unk> protection was flawed previously + we think this is a superior deal to mccaw 's + we 're surprised + we did n't think a sleeping bell mentality would be willing to take on <unk> + but kenneth leon a telecommunications analyst with bear stearns & co. finds the bellsouth proposal still flawed because the company does n't have to wait five years to begin buying more lin shares + how many shares will be around in N he asked + there 's nothing preventing bellsouth from buying up shares in the meanwhile + bellsouth 's revised proposal surprised many industry analysts especially because of the company 's willingness to accept some <unk> of future earnings + william o. <unk> president of the company 's bellsouth enterprises inc. unit said the revised agreement with lin would <unk> bellsouth earnings by about N N in both N and N and by significantly less thereafter + indeed bellsouth 's cellular operations were among the first in the country to become profitable + for N bellsouth earned $ N billion or $ N a share on revenue of $ N billion + analysts were predicting N bellsouth earnings in the range of $ N a share or $ N billion but now those estimates are being scaled back + in composite trading friday on the new york stock exchange bellsouth shares fell N cents to $ N + in national over-the-counter trading lin shares soared $ N to closed at $ N while mccaw fell $ N a share to $ N + the proposed <unk> cellular company including the newly acquired metromedia stake would give the new entity N million potential customers including about N million in the nation 's top N markets + mr. leon of bear stearns speculated that mccaw in an attempt to buy time might consider filing an antitrust suit against bellsouth with the justice department and u.s. district judge harold greene who oversees enforcement of the consent <unk> that broke up the bell system in N + indeed mccaw seemed to hint at that option in a brief statement + urging lin directors to conduct a fair auction on a level playing field mccaw asked how well the public interest would be served with the bell operating companies controlling over N N of all cellular potential customers in the nation 's top N markets + market makers in nasdaq over-the-counter stocks are adding their voices to the swelling chorus of complaints about program trading + their <unk> however has a strong practical aspect program trading is hazardous to their <unk> + the most controversial form of program trading stock-index arbitrage is making it tough for traders to make money declares robert <unk> head of otc trading at donaldson lufkin & jenrette + stock-index arbitrage the computer-guided buying and selling of stocks with offsetting trades in stock-index futures to profit from fleeting price discrepancies affects the otc market directly through the N stocks included in standard & poor 's 500-stock index + the s&p N is often used in arbitrage strategies + the portion of otc volume attributable to program trading is n't known as it is on the new york stock exchange where it amounted to more than N N in september + estimates from traders put it at less than N N of nasdaq 's average daily volume of roughly N million shares + other <unk> <unk> program trading also causes the nasdaq composite index to lose ground against other segments of the stock market + because of program trading it is more difficult to trade many otc stocks without sharp price moves a condition known as <unk> + moreover the price volatility that is <unk> by program trading is <unk> efforts to woo individual investors back to an otc market that <unk> misses them + some of these problems are neither new nor unique to the otc market + but the big often tumultuous slide in stock prices this month has turned some of those who have been <unk> from the practice against it + peter dapuzzo head of retail equity trading at shearson lehman hutton acknowledges that he was n't troubled by program trading when it began in the <unk> bull market because it added liquidity and people were pleased to see stock prices rising + we were n't as concerned until they became sell programs says mr. dapuzzo who now thinks it adds unnecessary volatility + shearson lehman however <unk> program trades for clients + merrill lynch goldman sachs and kidder peabody in addition to shearson do <unk> otc stocks + shearson merrill lynch and goldman sachs say they do so only for customers however + kidder peabody does program trading for its own as well as clients ' accounts + of course there were sell programs in past years too but they seem to hurt market makers more painfully these days + that 's largely because of defensive measures they adopted after the N crash when individual investors fled the market and trading activity <unk> + market makers to cut costs slashed inventories of stocks they keep on hand to sell investors when other holders are n't selling + and to protect their reduced capital investment from eroding further market makers became <unk> to lower price quotes when sell programs are in progress + on days when prices are tumbling they must be willing to buy shares from sellers when no one else will + in such an environment market makers can suffer huge losses both on trades made that day at steadily dropping prices and in the value of their inventories of shares + it makes no sense for us to put money at risk when you know you 're going to lose says mr. <unk> of donaldson lufkin + but this <unk> mr. <unk> says is creating liquidity problems in certain otc stocks + it 's harder to sell stocks when the sell programs come in because some market makers do n't want to take the orders + no one has big positions and no one wants to take big risks + joseph <unk> president of the national association of securities dealers which oversees trading on nasdaq agrees that program trading is hurting the market 's efforts to bring back small investors + but he observes while makers suffer losses when program trading <unk> the market down they also make money when program trading <unk> the prices higher + sometimes traders lose sight of that he says + the otc stocks in the s&p N include nasdaq 's biggest such as apple computer mci communications tele-communications and <unk> <unk> + these big stocks greatly influence the nasdaq composite index + when the computers say sell the composite <unk> as well as the dow jones industrial average + the problem market makers say is that while the industrial average and the s&p N usually recover as buy programs kick in the nasdaq composite frequently is left behind + eight trading days after oct. N the day before the stock market plunge for instance the nasdaq composite had fallen N N compared with N N for the s&p N N N for the new york stock exchange composite index and N N for the industrial average + this gap eventually closes but slowly + three days later as of friday 's close the nasdaq composite was down N N compared with N N for the industrial average N N for the s&p N and N N for the big board composite + the main reason for this lag is that individual investors own N N of the otc market 's capitalization according to mr. <unk> much more than on the big board + such investors tend to be more cautious than institutional investors are about <unk> the market after massive <unk> market makers say + friday 's market activity + the nasdaq composite index tumbled N or N N to N on friday + for the week the index dropped N N + weakness in big technology stocks hurt the composite as well as the nasdaq N index which fell N N or N on friday to N + the nasdaq financial index lost about N N or N to N + friday 's trading volume totaled N million shares + the average daily share turnover for october is almost N million shares + lin broadcasting surged N N to N N lin and bellsouth sweetened their merger agreement in an attempt to keep shareholders from <unk> their shares to mccaw cellular communications + mccaw which dropped N N to N N has offered $ N a share for a majority of lin 's shares + the revised <unk> agreement boosts the dollar amount of the special dividend lin promises to pay shareholders + lin now plans to dole out $ N a share in cash up from the earlier $ N amount + intel eased N to N N + the semiconductor concern said the <unk> in shipment of its N computer chip will be brief and have little impact on the company 's earnings + the stock fell N thursday amid concerns over problems discovered with the chip + intel told analysts that the company will resume shipments of the chips within two to three weeks + weisfield 's <unk> N N to N after the jewelry store operator said it is in preliminary discussions with a party it would n't identify regarding the possible acquisition of the company + <unk> savings bank rose N to N after the federal deposit insurance corp. approved <unk> savings bank of new york 's $ <unk> acquisition of <unk> + <unk> medical fell N to N + the company said its third-quarter earnings will probably be lower than the N cents a share it reported last year despite a rise in the company 's revenue + <unk> earned $ N on revenue of $ N million in the N quarter + the company blamed a number of factors for the earnings decline including softer sales of <unk> + london share prices closed sharply lower friday in active trading after chancellor of the exchequer nigel lawson 's resignation <unk> the market and wall street 's rapid initial sell-off knocked it down + london shares were depressed initially by overnight losses in new york and by the drop in sterling after mr. lawson 's resignation + it showed some early resilience after central bank support firmed sterling but the weight of wall street late in london trading and signs of further weakness in the british pound proved a hefty load to bear + new york stocks recovered some of their losses after the london market closed + the financial times 100-share index shed N points to close at N down N N from the previous friday and N N from oct. N when wall street 's plunge helped spark the current weakness in london + the 30-share index settled N points lower at N + volume was N million shares up from N million thursday and the week 's most active session + dealers said the turnover largely confined to the 100-share index stocks partly reflected the flurry of activity typical at the close of a <unk> trading account and the start of a new account + but they said friday 's focus on the <unk> stocks <unk> active overseas selling and showed the broad-based fears over the status of the u.k. economy and britain 's currency in the wake of the upheaval in prime minister margaret thatcher 's cabinet + a senior dealer with warburg securities noted british gas the most active blue-chip stock at N million shares traded was affected by the political implications of mr. lawson 's departure and mrs. thatcher 's cabinet <unk> + he attributed the unusually high volume to broad-based selling on fears that the thatcher government may be in turmoil and britain 's labor party positioned to regain control of the government and renew efforts at <unk> + british gas shed N pence a share to close at N pence $ N + other dealers added that the blue-chip stocks in general were hit by profit-taking over concerns that london shares will continue posting declines and the uncertainty over sterling given that mr. lawson 's successor john major had only been in the job one day + besides british gas british steel skidded N to N on turnover of N million shares + british petroleum fell N to N on N million shares traded + dealers said the multinational oil company was pressured by recent brokerage recommendations urging investors to switch into shell trading & transport + shell eased N to N on turnover of N million shares + among the other actively traded blue-chip issues imperial chemical industries dropped N to # N hanson skidded N to N and british <unk> fell N to N + in tokyo stocks closed lower but above intraday lows in active trading + the nikkei index was pressured down by profit-taking triggered by sharp advances made through this week and fell N points to N + in early trading in tokyo monday the nikkei index fell N points to N + on friday the tokyo stock price index of first section issues was down N at N + <unk> volume was estimated at N billion shares up from N million shares thursday + an official at <unk> securities said <unk> ' excessive expectations about recent advances in tokyu group shares and real estate issues were dashed friday + dealers placed heavy buy orders in the morning to start the first trading day for november transactions + but they failed to sell these stocks to client investors who were cautious about the sharp gains these issues made this week the <unk> official said + fund managers said friday 's <unk> was a natural result of the week 's <unk> fever in buying real estate shipbuilding steel and construction shares + frankfurt prices closed lower again friday the fourth decline in the past five days and the culmination of a week that saw the dax index lose N N + the dax dropped N points friday to N + traders said the continued turbulence in other markets coupled with the drop in london following the lawson resignation were responsible + traders said that selling pressure was n't enormous and that the dax dropped friday more on a lack of any substantial buying interest + they said contributing to the downward <unk> was the fact that many professional traders had chosen to square positions ahead of the weekend + it 's the whole uncertainty about what 's happening around us said <unk> von <unk> a trader at credit suisse first boston in frankfurt + if you take away the outside influences the market itself looks very cheap + what 's happening here is n't justified by the fundamentals + traders said the market remains extremely nervous because of the wild swings seen on the new york stock exchange last week + that 's leaving small investors with cold feet they said and prompting institutions to take a reserved stance on the sidelines as well at least until the market in new york <unk> down somewhat + elsewhere share prices closed lower in paris zurich amsterdam brussels and stockholm and were mixed in milan + the british <unk> was widely cited for the declines + share prices also closed lower in sydney hong kong singapore taipei manila wellington and seoul + concern about declines in other markets especially new york caused selling pressure + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + last week 's best and worst performing stocks among those issues that make up N N of the world 's stock market capitalization in local currency + source morgan stanley capital <unk> + apartheid foes staged a massive <unk> rally in south africa + more than N people filled a <unk> stadium on the <unk> of the black township of <unk> and welcomed freed leaders of the outlawed african national congress + it was considered south africa 's largest opposition rally + walter sisulu the anc 's former secretary general who served N years in prison before being released two weeks ago urged peace negotiation and discipline + president de <unk> 's government permitted the rally and security forces did n't interfere + pretoria 's approval of the demonstration and the anc 's <unk> tone appeared aimed at setting up negotiations to give blacks political rights + congressional leaders backed bush 's criticism of nicaragua 's ortega + while lawmakers have n't raised the possibility of renewing military aid to the contras following ortega 's weekend threat to end a truce senate majority leader mitchell said on <unk> that ortega had made a very <unk> move + minority leader dole plans to offer a resolution tomorrow <unk> the nicaraguan president whose remarks came during a celebration in costa rica marking regional moves to democracy + ortega cited renewed attacks by the <unk> rebels + lawmakers must decide next month whether the contras will get so-called humanitarian aid under a bipartisan agreement reached in march + spain 's socialist party claimed victory in nationwide elections saying it had retained its parliamentary majority by one seat + with all the votes counted a government spokesman said prime minister gonzalez 's party won N seats in the <unk> <unk> or lower house of parliament + the <unk> held N seats going into the balloting + thousands of east germans attended public rallies organized by the communist leadership and demanded free speech controls on the security forces and an end to official privileges + the <unk> in east berlin and elsewhere were viewed as part of a government effort to stop activists from staging protests to press their demands + <unk> in czechoslovakia said the nation 's pro-democracy movement was growing despite the government 's move to crush a protest saturday in <unk> 's <unk> square + more than N demonstrators had called for free elections and the resignation of communist party leader <unk> <unk> + police <unk> more than N people + federal investigators have determined a <unk> flaw that developed during the making of an engine disk led to the july crash of a united airlines jetliner in <unk> city iowa killing N people + congress sent to bush an $ N billion military construction bill that cuts spending for new installations by N N + the measure also moves more than $ N million in the pentagon budget to <unk> projects from foreign bases + u.s. and soviet officials are to open a new round of talks today aimed at reducing <unk> <unk> amid <unk> differences over whether to stop making the <unk> + the talks in new york are the first since bush and soviet foreign minister shevardnadze unveiled proposals in september to scrap existing weapons + afghan guerrillas <unk> kabul in a weekend assault that western diplomats called one of the biggest <unk> since the soviet union completed a troop withdrawal in february + the rebels also reportedly tightened a <unk> on roads leading to the capital and government forces <unk> a <unk> area in western afghanistan + lebanon 's christian leader <unk> an emergency meeting of his cabinet after indications that he might <unk> parliament in an attempt to scuttle an <unk> peace plan + gen. <unk> aoun rejected the pact because it fails to provide a timetable for a syrian troop pullout from lebanon + authorities in hawaii said the <unk> of a missing <unk> plane with N people aboard was spotted in a <unk> valley on the island of <unk> + there was n't any evidence of <unk> + the plane failed to reach <unk> 's airport saturday while on a flight from the neighboring island of <unk> + the oakland athletics won baseball 's world series <unk> the san francisco giants in a four-game sweep + an earthquake oct. N in northern california had caused a <unk> delay <unk> through the championship contest which ended saturday at san francisco 's candlestick park + died <unk> von <unk> N chairman of <unk> ag of west germany in <unk> of <unk> + the west german machinery and plant equipment industry 's orders rose an inflation-adjusted N N in september from a year earlier despite a sharp drop in foreign orders the german association of machinery makers said + before adjustment for inflation the association said orders were up a nominal N N + while domestic orders climbed an adjusted N N and a nominal N N in september foreign orders declined N N after inflation and N N on a nominal basis + in the third quarter orders rose a real N N and a nominal N N + domestic orders were up a real N N and a nominal N N while foreign orders rose a real N N and a nominal N N + when michael s. <unk> took the <unk> at a recent cosmetics industry event more than N executives <unk> the room snapped to attention + mr. <unk> who runs unilever group 's world-wide <unk> business <unk> to <unk> the crowd + i see we have about half the audience working for us he said <unk> in <unk> + the other half we may have before long + members of the audience <unk> or <unk> nervously their industry has been unsettled recently by acquisitions + first unilever the <unk> packaged-goods giant spent $ N billion to acquire brands such as faberge and elizabeth <unk> + it now holds the no. N position at u.s. department-store cosmetic <unk> + then procter & gamble co. agreed to buy noxell corp. for $ N billion + that acquisition to be completed by year end will include the cover girl and <unk> makeup lines making p&g the top marketer of cosmetics in mass-market outlets + it 's not so much the idea of acquisitions that has <unk> the cosmetics industry as the companies doing the acquiring p&g and unilever bring with them great experience with mundane products like soap and toilet paper <unk> <unk> in the <unk> cosmetics trade but they also bring <unk> marketing clout <unk> fear + though it is far from certain that companies best known for selling promise <unk> and tide detergent will succeed in cosmetics there 's little doubt they will shake up the industry + for now both companies are keeping quiet about their specific plans + but industry watchers expect them to <unk> the <unk> marketing strategies they use for more mundane products with the more <unk> approach typical of cosmetics companies + likely changes include more emphasis on research soaring advertising budgets and aggressive pricing + but some <unk> executives wonder whether techniques <unk> in packaged goods will translate to the cosmetics business + <unk> lauder inc. <unk> inc. and other cosmetics houses traditionally have considered themselves fashion enterprises whose product development is <unk> by the creative <unk> of their executives + cosmetics companies roll out new makeup colors several times a year and since most products can be easily <unk> by competitors they 're loath to test them with consumers + just because upscale cosmetics look like packaged goods and <unk> like packaged goods it does n't mean they are packaged goods says leonard lauder chief executive of <unk> lauder + they 're really fashion items <unk> up in little <unk> + in contrast to the more artistic nature of traditional cosmetics houses unilever and p&g are the <unk> of organization men in <unk> suits + both companies are conservative marketers that rely on extensive market research + p&g in particular rarely rolls out a product nationally before extensive <unk> + both can be extremely aggressive at pricing such products as <unk> and <unk> to the extent that some industry consultants predict <unk> coupons for <unk> could result from their entry into the field + p&g already has shown it can <unk> some traditional packaged-goods techniques with the <unk> of the cosmetics trade in the mass-market end of the business + consider oil of <unk> which p&g acquired as part of <unk> international in N + the <unk> introduced in N had a <unk> image + oil of <unk> brought with it the <unk> of being used basically by older women who had already aged says david williams a consultant with new england consulting group + p&g set out to <unk> the brand by <unk> the product line to include <unk> <unk> and <unk> for sensitive skin + it also <unk> oil of <unk> 's packaging <unk> the traditional <unk> boxes with gold lines to create a more <unk> look + moreover p&g shifted its ad campaign from one targeting older women to one featuring a woman in her <unk> <unk> not to grow old <unk> + the company says sales have soared + <unk> like unilever and p&g have enormous financial advantages over smaller rivals + next year noxell plans to roll out a <unk> called navy says george l. <unk> jr. chairman of noxell + without p&g 's backing noxell might not have been able to spend the estimated $ N million to $ N million needed to accomplish that without <unk> on its existing brands + packaged-goods companies will make it tougher for smaller people to remain competitive mr. <unk> says + further <unk> in the industry could follow + rumors that unilever is interested in acquiring schering-plough corp. 's <unk> unit are widespread + unilever wo n't comment <unk> however denies the brand is for sale + the presence of unilever and p&g is likely to increase the impact of advertising on cosmetics + while the two are among the world 's biggest advertisers most makers of upscale cosmetics spend relatively little on national ads + instead they focus on events in department stores and pour their promotional budgets into gifts that go along with purchases + <unk> lauder for example spends only an estimated N N of sales on advertising in the u.s. and mr. lauder says he has no plans to change his strategy + the most dramatic changes however probably will come in <unk> development + nearly N N of cosmetics sales come through <unk> outlets such as drug stores and supermarkets according to andrew shore an analyst at shearson lehman hutton inc + that figure has been <unk> up for several years + as the trend continues demand for mass-market items that are high quality but only <unk> particularly <unk> products is expected to increase + this fall for example <unk> group ordinarily a high-end line rolled out a <unk> line of <unk> products called <unk> which retail for $ N to $ N + the packaged-goods marketers may try filling that gap with a spate of new products + unlike the <unk> cosmetics houses unilever and p&g both have enormous research and development bases to draw on for new products + p&g in fact is noted for gaining market leadership by introducing products that offer a technical edge over the competition + sales of its tide detergent soared earlier this year for example after p&g introduced a version that includes a <unk> safe for all colors and <unk> + that 's led industry executives to speculate that future product development will be driven more by technological innovation than by fashion <unk> especially among mass-market brands + there will be more emphasis on quality says guy <unk> chief executive of <unk> inc. the u.s. <unk> of <unk> + you 'll see fewer <unk> + but success for unilever and p&g is far from guaranteed as shown by the many <unk> companies that have tried and failed to master the <unk> beauty business + in the 1970s several pharmaceutical and packaged-goods companies including colgate-palmolive co. eli lilly & co. pfizer inc. and schering-plough acquired cosmetics companies + industry consultants say only schering-plough which makes the mass-market <unk> has maintained a meaningful business + colgate which acquired <unk> <unk> in N sold the brand seven years later after the brand <unk> + unilever already has experienced some disappointment + the mass-market <unk> brand which it acquired in N along with <unk> 's inc. has lost share according to industry analysts + the <unk> world of department-store cosmetics retailing where unilever is concentrating its efforts may prove even more <unk> + in this niche makeup colors change seasonally because they are linked to <unk> <unk> + because brand loyalty is weak and most cosmetics purchases are <unk> careful training of store sales staffs by cosmetics companies is important + and <unk> a luxury image strong enough to persuade consumers to pay more than $ N for <unk> or eye makeup requires a <unk> touch that packaged-goods companies have yet to demonstrate on their own + there may be a truce in the long war of nerves between the white house and congress over how this country <unk> secret intelligence operations abroad + after years of <unk> born of <unk> past <unk> of the central intelligence agency and the iran-contra scandal president bush and the senate intelligence committee appear ready for now at least to trust each other when it comes to setting policy on covert activities + if that attitude lasts it could <unk> covert action planning with a level of care and confidence that has n't been seen in years + over the past week the president has agreed to keep the committee informed usually in advance of covert actions and to put key intelligence decisions in writing + that was n't always the way the reagan administration handled such matters + mr. bush has pledged as well to respect the 14-year-old executive order barring u.s. agents from <unk> foreign leaders or helping others to do so + congress never fully trusted former cia chief william <unk> and national security adviser john <unk> to honor the ban + despite objections by the cia mr. bush also has agreed to the establishment of an inspector general at the cia who would be independent of the cia director + in return the senate panel has dropped efforts to enact legislation requiring the administration to inform it within N hours of the launching of any covert activity + it also has removed a ban on cia use of a <unk> fund for covert acts and has agreed to wipe away some <unk> and <unk> restrictions on coup planning put in place to ensure that the cia did n't get back in the assassination game + we 've finally been able to convince them that <unk> and oliver north do n't work here anymore says one administration official + the new understanding did n't just spring to life in a <unk> <unk> of <unk> and light + it emerged after a <unk> display of <unk> intelligence politics that followed this month 's failed coup attempt in panama + the white house used television appearances and leaks to argue that <unk> imposed restrictions on covert actions made u.s. support for such coups difficult + mr. bush even disclosed privately that one <unk> deal with congress required him to notify the <unk> panamanian dictator manuel noriega if the u.s. learned of a coup plot that might endanger his life + the president also hinted he might veto this year 's intelligence authorization bill if it is too restrictive + intelligence committee chairman david boren d. <unk> and vice chairman william cohen r. maine for their part <unk> accused the white house of <unk> <unk> classified documents and trying unfairly to shift the blame to congress for the <unk> attempt to topple gen. noriega + the white house got the better of the exchange but took care not to press its advantage to the kind of constitutional confrontation sought by conservative republicans who do n't want any congressional oversight of intelligence activities + instead mr. bush and his aides made it clear they respected congress 's role and felt they could work with the conservative mr. boren and the moderate mr. cohen to iron out their differences + the senators responded in kind + sen. boren <unk> told reporters that there had been a meeting of the minds with the white house and that the committee had given mr. bush a clean slate free of the <unk> imposed during the reagan years + sen. cohen said the relationship has <unk> to its <unk> character + there still are some details to be <unk> down + mr. bush is <unk> the right in rare <unk> to keep congress in the dark <unk> a constitutional <unk> the committee does n't recognize + and a pending justice department interpretation of the assassination ban could raise questions that would have to be settled + moreover both sides may face political critics + some conservatives will accuse the president of promising congress too much + and they continue <unk> attacking cia director william webster for being too <unk> to the committee + at the same time some congressional liberals will accuse sens. boren and cohen of <unk> out and they will warn that the lawmakers ' concessions raise the specter of more internationally embarrassing covert operations like the mining of nicaraguan harbors and the iran arms sales + but if the cooperative attitude holds and there is greater <unk> on covert activities the country could be entering an era when such <unk> schemes are scrapped before they get off the drawing boards while risky but <unk> secret operations can be undertaken without fear that a <unk> congress will <unk> + several of the new york stock exchange 's own listed companies led by giant contel corp. are joining for the first time to complain about program trading and the exchange 's role in it + claiming program trading has turned the big board into a gambling casino contel chairman charles wohlstetter said that he and at least N other corporate executives are forming an unprecedented alliance + the group mr. wohlstetter said in an interview wants to end the market 's wild price swings that critics blame on <unk> program-trading strategies + the group will complain to washington to the heads of program-trading firms and to the heads of the big board itself he said + they should call the exchange trump east charged mr. wohlstetter the <unk> founder of contel who 's also a former investment banker and stock trader + what is the mission of the financial community + to help some <unk> or <unk> or help corporate america + contel is a $ N billion telephone and electronics company + pressure has been building on the big board in the past two weeks to do something about market volatility which many investors say is caused by program trading + the market 's friday-the-13th plunge of N points in the dow jones industrial average and the big board 's <unk> response to it galvanized some longstanding <unk> among companies listed on the exchange + last month program trading accounted for a record N N of average daily big board volume + mr. wohlstetter for example said he wrote to big board chairman john j. phelan jr. about program trading after the 190-point dow plunge and as in previous <unk> what i get back is <unk> + he said he 's upset that mr. phelan trying to calm investors after the plunge said that investors would simply have to get used to the market 's big price swings + the big board is partly to blame for the price swings because they 're <unk> said mr. wohlstetter + their powerful members manage them + the focus of the outcry has been stock-index arbitrage which accounts for about half the program trading that goes on + index arbitragers argue that their trading is healthy because it links markets but critics say such trading <unk> market movements and increases the chance for a crash + the big board has refused to be drawn into a public debate about program trading + richard <unk> big board president last week said only that the exchange is concerned about all its constituents + privately exchange officials worry that without a <unk> system for program trading at the big board billions of dollars in trading will simply <unk> to overseas exchanges such as london 's + it is partly for this reason that the exchange last week began trading in its own stock basket product that allows big investors to buy or sell all N stocks in the standard & poor 's index in a single trade + one intended customer of the new basket product is index arbitragers according to the exchange + investors have complained for some time about program trading particularly index arbitrage to little <unk> + but according to some big board traders an organized campaign from <unk> companies might make the exchange finally consider big changes + they wo n't fight the listed companies + now the assault is on said one top trader + the big board ca n't ban stock-index futures of course but it could ban use of its <unk> electronic trading system for program trading or at least encourage securities firms to back off + the exchange put a bit of a <unk> on program trading when last year it simply started to publish monthly statistics of each firm 's program-trading volume + contel 's mr. wohlstetter said the group of big board companies is n't ready to go public yet with its effort and that he does n't plan to be the leader once it is public + however he said he planned to spend the weekend making calls to gather additional support + among those mr. wohlstetter said he has been talking to are sanford <unk> of primerica corp. which is the parent of smith barney harris upham & co. gte corp. 's james johnson and itt corp. 's rand <unk> + none of these chief executives were available for comment + among the targets of the big board companies ' campaign will be some corporate pension funds that use program-trading strategies to maximize returns on their investments + for contel 's part the company a month ago informed each of its money managers that it would drop them if they give business to program-trading firms + it was just those kinds of <unk> that last week succeeded in turning up the heat in the debate + kemper corp. 's kemper financial services unit said it cut off bear stearns morgan stanley oppenheimer and general electric co. 's kidder peabody & co. unit + all of the firms except kidder which is the <unk> program trader on wall street quickly announced <unk> from index arbitrage + kidder officials stand by their aggressive use of program trading + chief executive officer michael carpenter said that despite the outcry even by some of kidder 's own brokers he believes index arbitrage does n't have a negative impact on the market as a whole + however pressure on kidder 's parent ge could change kidder 's policy + ge chairman john welch has been besieged with phone calls complaining about his unit 's program trading according to a person close to him + margaret thatcher 's <unk> response to the latest upheaval in her government is to promise business as usual + that may be the last thing she needs + as the air clears from last week 's storm of resignations and <unk> the government faces a <unk> job of rebuilding confidence in its policies + the prime minister and her new chancellor of the exchequer the <unk> john major need to haul the country through something like a recession to bring down inflation and set the economy moving again + mrs. thatcher has to come to terms with european economic integration beginning with the european monetary system which britain is committed to joining fully someday + finally the government has to convince a rattled financial community and voters it is proceeding <unk> toward its goals + it sounds like the work of a decade but the deadline is late N when mrs. thatcher is expected to call another national election + what 's worrying her supporters is that the economic cycle may be out of <unk> with the political timetable + she could end up seeking a fourth term in an economy sick with inflation high interest rates and a heavy trade deficit + though mrs. thatcher has pulled through other crises supporters wonder if her <unk> <unk> ways are the right formula today + there 's a rising fear that perhaps mrs. thatcher 's style of management has become a political liability says bill martin senior economist at london brokers <unk> & drew + the prime minister 's insistence on keeping a private <unk> of advisers including an economic <unk> who openly criticized former chancellor of the exchequer nigel lawson confused the financial community + last week the strategy of playing the two experts off each other <unk> up mr. lawson quit in <unk> and sir alan walters the adviser announced his resignation within an hour + the confusion could be costly + currency traders <unk> mr. major wo n't defend the pound <unk> sent the british currency sharply lower friday against the dollar and west german mark + analysts expect further jitters this week + a continuing slide in the pound could force the government to push through another rise in the base rate currently N N + that could <unk> a weak economy into recession + economists have been anticipating a slump for months but they now say it will be deeper and longer than they had thought + britain 's economy is developing rapidly toward <unk> says j. paul <unk> international economist with smith barney harris upham co. in paris + a mild slowdown probably would have run its course by early N economists say while the <unk> downturn now expected could stretch into N + recovery could be hampered if britain 's major trading partners in europe which are enjoying robust economic activity cool off as expected in late N and N + that would leave mrs. thatcher little room for maneuver + for the <unk> to win the next election voters will need to sense economic improvement for about a year <unk> + though mrs. thatcher does n't need to call an election until june N she would prefer doing so in late N + if the economy shows no sign of turning around in about year 's time she will be very vulnerable says john <unk> a <unk> at the london school of economics + there 's an equally pressing deadline for the government to define its monetary and economic ties to the rest of the european community + it has sent mixed signals about its willingness to take part in the exchange-rate mechanism of the european monetary system which links the major ec currencies + at a june ec summit mrs. thatcher appeared to ease her opposition to full ems membership saying britain would join once its inflation rate fell and the ec <unk> capital movements + since then the government has left observers wondering if it ever meant to join + sir alan <unk> the monetary arrangement as <unk> in an article being published in an american economics journal + that produced little reaction from his boss reinforcing speculation the government would use its two conditions as a <unk> for avoiding full ems membership + despite the departure of mr. lawson and sir alan the <unk> over the ems could continue + sir <unk> <unk> deputy prime minister and a lawson ally on the ems has signaled he will continue pressing for early membership + of immediate concern is whether the thatcher government will continue mr. lawson 's policy of tracking the monetary policies of the west german <unk> and responding in kind when the frankfurt authorities move interest rates + mrs. thatcher does n't like taking orders from foreigners says tim <unk> economist with <unk> & national holding plc + as conservatives rally around mrs. thatcher during the crisis many harbor hopes last week 's debacle will prompt change + we wo n't have any more of this <unk> behavior says sir peter <unk> a <unk> <unk> member of parliament + the party is fed up with <unk> of good people + it 's an <unk> expectation + as long as a decade ago mrs. thatcher declared she did n't want debate in her cabinet she wanted strong government + over the weekend she said she did n't intend to change her style and denied she is <unk> + nonsense she told an <unk> yesterday on london weekend television + i am staying my own sweet reasonable <unk> + joseph l. <unk> chairman and chief executive officer of mcgraw-hill inc. was elected to the board of directors of this electronics manufacturer + he succeeds the retiring james w. <unk> + base data + computers that once were the state of the art the <unk> bought three years ago are now <unk> + as we <unk> start the search for <unk> we know the new one we purchase in hopes it will do despite every wonder that 's stated means more speed more graphics more memory too but also more quickly out dated + <unk> <unk> + <unk> <unk> + i know when dividends are due when bonds should be retired but what gets by me every time is has the milk expired + ralph <unk> + daffynition + <unk> <unk> to <unk> <unk> + <unk> elliott + wives may not benefit when men do chores + when <unk> take on more <unk> they tend to substitute for chores done by the kids rather than by the wife + rand corp. researchers linda <unk> and <unk> <unk> <unk> a large sample of married women with at least one child at home between the ages of six and N + the women indicated which family member usually did various household chores and the <unk> share each did + not unexpectedly wives whether working or <unk> did by far the most about N N of the shopping <unk> and cooking and about two-thirds of <unk> <unk> <unk> child care and family paper work + only for <unk> and home maintenance did women do less than half + but the researchers found that while children 's household tasks eased the mother 's burden <unk> the husband 's helping hand appears to <unk> the children 's load almost on a <unk> basis and to reduce the wife 's responsibility only modestly + this pattern was particularly evident among more highly educated couples + in these families <unk> took on N N more chores than in couples with only <unk> school education + but the kids with highly educated parents did N N less <unk> than those in <unk> families + it is clear ms. <unk> says that most of the effect of increasing education has been to shift who is helping the <unk> + her share <unk> but only slightly + nursing home patients apt to be private <unk> + far fewer elderly nursing home residents bankrupt themselves than was previously believed two recent studies declare + state governments place very low <unk> on how much property people may own or how much income they may keep if they want welfare help on medical bills + conventional wisdom has long held that anywhere from <unk> to one-half of all elderly long-term care patients are obliged to spend themselves into poverty before <unk> for medicaid assistance + but separate reports from <unk> <unk> and <unk> <unk> of the <unk> institution and <unk> <unk> of the urban institute find that a surprisingly small proportion only about N N of residents start out as private <unk> but spend down to medicaid levels in a single nursing home stay before they die or are <unk> + another one-third are already on medicaid when they enter the nursing homes a considerably higher proportion than the analysts anticipated + but a <unk> high percentage over half are private <unk> throughout their stay even a fairly lengthy one + about one-third pay out of their own pockets while the rest are covered throughout by medicare private insurers or the veterans administration + both reports are based on several thousand patients <unk> in a N nationwide government survey + the <unk> and urban institute authors caution however that most nursing home stays are of <unk> short <unk> and reaching the medicaid level is more likely with an unusually long stay or repeated stays + moreover they note those who manage to pay their own way often do so only by selling their homes using up life savings or drawing heavily on children and other <unk> + reagan era young hold liberal views + the reagan generation young men and women reaching political maturity during ronald reagan 's presidency are firmly liberal on race and <unk> according to <unk> the social science research center at the university of chicago + many political analysts have speculated that the reagan years would produce a <unk> conservative younger generation + <unk> 's most recent opinion surveys find the youngest adults indeed somewhat more <unk> and <unk> than other adults + but says chief investigator tom smith this does not translate into support for <unk> in general or into conservative positions on <unk> and civil rights issues + answers to a dozen questions in the N N N and N national surveys reveal that men and women in the N to N age <unk> are considerably more liberal on race and <unk> than were the N to N year <unk> in <unk> 's <unk> in the early 1970s and early 1980s + they were also as liberal or more liberal than any other age group in the N through N surveys + for example N N of the N to N year <unk> in the four latest surveys favored an open housing law <unk> homeowners from refusing on racial grounds to sell to prospective buyers + that compares with N N of the similar age group in the N through N surveys and N N in the N through N surveys + asked whether they agreed or disagreed with the claim that men are <unk> better <unk> to politics than women N N of the reagan generation disagreed compared with under N N of younger men and women in the earlier years + odds and ends + <unk> and <unk> men and women are far more likely to be smokers than married persons the centers for disease control <unk> + graduate students are taking longer than ever to get their doctor of philosophy degrees the national research council says + it estimates the time between college <unk> and the <unk> of a <unk> d. has <unk> by N N over the past N years with the average gap now ranging from about N years in the physical sciences to N years in education + october was an <unk> month for the practitioners of glasnost the official soviet policy of allowing more <unk> from the nation 's media + for one of the <unk> of glasnost <unk> korotich editor of the <unk> weekly <unk> friday oct. N was a <unk> day that turned from tension to <unk> + he had been summoned to the central committee of the soviet communist party after he finished his lunch at the <unk> hotel an unlikely prelude to a bureaucratic <unk> <unk> <unk> naked <unk> float on their <unk> toward a ceiling <unk> with <unk> all surrounded by <unk> laid on with a <unk> <unk> 's <unk> and supported by marble <unk> columns whose <unk> are <unk> <unk> of gold + why had mr. korotich been called + i told my driver he said that he was taking my <unk> to the central committee so they can <unk> <unk> <unk> his hand made vigorous <unk> gestures on his left palm + they feel the need from time to time to educate me + and indeed as he later reported that was the import of the meeting + anxious allies of president mikhail gorbachev are <unk> media leaders to take it easy to be careful not to do anything that could be used by mr. gorbachev 's opponents + the government is nervous + according to mr. korotich who was present mr. gorbachev 's publicized <unk> of the press on oct. N was more of a plea be careful boys use good judgment + we 're standing in gasoline so do n't smoke + u.s. and northern european diplomats confirm mr. korotich 's assessment that glasnost is in no immediate danger + in fact a very <unk> soviet official told an american official at a diplomatic dinner that no change in the policy was contemplated + the day after that conversation at the residence of the u.s. ambassador the <unk> editor of pravda victor <unk> was replaced by a college <unk> of mr. gorbachev 's + <unk> <unk> have more to fear from mr. gorbachev than the <unk> <unk> he gave to the press + at the end of the very week in which mr. korotich was called to the central committee <unk> was again <unk> its independence by printing a poll that showed that N N of the soviet population a <unk> believed that mr. gorbachev 's economic reforms perestroika would result in only <unk> change + a good measurement of the popularity of <unk> <unk> like <unk> is circulation + when mr. korotich took it over in N it sold N copies today it sells N million + pravda meanwhile has retained only N N of its N <unk> + glasnost has made <unk> of men like mr. korotich + prevented by the communist party from getting on its slate of <unk> for the new supreme soviet he stood as an independent candidate for congress from his native <unk> and won with N N of the vote + the same evening that he was summoned for a warning from the party he was cheered by thousands of his supporters at a rally of what can only be called the korotich party + but as <unk> as the changes that have already occurred are there is a <unk> to glasnost + censorship is n't a marxist <unk> + the <unk> were no civil <unk> + as late as the <unk> the russian government prevented any coverage of <unk> + it even directed newspapers not to publish anything that might <unk> the honor of the <unk> <unk> 's wives + so glasnost is not a value <unk> with steel <unk> into the fabric of russian society + it is an <unk> public relations program initiated by a single political leader during a four-year <unk> of history + it is public relations of the highest <unk> that recognizes that credibility is enhanced by honesty up to a point + what is that point + will <unk> begin a series of reports analyzing the failures of perestroika + i 'd be destroying myself replies mr. korotich who then asks what would that accomplish + his answer reveals his <unk> it also draws the line that soviet society must cross to enter the normal dialogue of western culture + it is the line beyond which the press can report not only on the bankruptcy of factories but on the failures of even <unk> leaders + mr. <unk> is editor and publisher of the <unk> ala. star + a state trial judge in illinois gave preliminary approval to a proposed settlement of a suit against a bank of new york co. unit irving trust co. over the interest rates on irving 's former one wall street account money-market deposit accounts + judge albert green in cook county circuit court in chicago also recognized the suit filed last may by robert and cynthia <unk> as a class action covering thousands of irving customers + the plaintiffs accused irving of paying less interest than promised in a marketing <unk> + irving maintained and still does that its actions were proper under its account agreements with customers + under the proposed settlement customers with valid claims to be submitted by dec. N will receive valuable bank services such as credit cards with reduced finance charges for two years + larry <unk> attorney for the plaintiffs valued the settlement at between $ N million and $ N million + a bank of new york spokesman in manhattan owen brady said that 's the maximum outside figure + federal reserve critics used to complain of stop and go monetary policies + they claimed that the fed would first give a green light to the economy by making credit readily available and then turn on the red and bring growth to a <unk> halt + but under alan greenspan that has changed + a <unk> cautious man the fed chairman is forever <unk> yellow + indeed his caution has become legendary within the government + he <unk> <unk> over economic statistics <unk> them in dozens of ways probing for hours in search of potential problems + after <unk> <unk> <unk> of information he often concludes that more data are needed and when he finally decides to act his movements sometimes seem <unk> small + such caution was evident after the recent friday-the-13th stock market plunge + some bush administration officials urged mr. greenspan to make an immediate public announcement of his plans to provide ample credit to the markets + but he refused claiming that he wanted to see what happened monday morning before making any public statement + mr. greenspan 's decision to keep quiet also prompted a <unk> within the fed 's ranks + a senior fed official spoke on saturday after the market <unk> to both the washington post and the new york times saying the fed was prepared to provide as much credit as the markets needed + the statement angered chairman greenspan but it was greeted with applause by the bush administration and the financial markets + and while the <unk> fed member has n't gone public some fed governors most notably vice chairman manuel johnson are known to have disagreed with the chairman 's decision to remain silent + ironically the <unk> official 's comments have earned some <unk> for mr. greenspan who is mistakenly seen as the source + at a hearing last week democratic sen. chris dodd of connecticut told treasury secretary nicholas brady that chairman greenspan 's announcement over the oct. N weekend was a very important statement + mr. brady <unk> replied that he was n't sure whether mr. greenspan made a statement himself or whether that was a newspaper report + the fed chairman 's caution was apparent again on the monday morning after the market 's plunge when the central bank took only modest steps to aid the markets + a surprisingly small amount of reserves was added to the banking system + and by the end of that week the key federal funds interest rate which is largely controlled by the fed had settled at N N barely changed from the level of just under N N that prevailed the previous week + bush administration officials appear increasingly concerned that mr. greenspan is cautious to a fault + signs of growing weakness in the economy <unk> with indications that inflation is staying well under control have caused them to wonder why the fed chairman is so <unk> in reducing rates + those concerns are n't expressed in public + in fact the administration and the fed have been going out of their way in the past two weeks to <unk> any impression that they are at odds <unk> stories about an <unk> split added to the stock market 's jitters + still the split is there + the administration 's concerns are <unk> + the economy is showing signs of weakness particularly among manufacturers + exports which played a key role in fueling growth over the last two years seem to have stalled + factory <unk> and production fell in september and the auto industry and housing are in a severe crunch + but mr. greenspan remains reluctant to loosen policy partly because he faces a <unk> of presidents of regional fed banks who oppose credit easing + in addition the chairman has a wary eye aimed a year or two down the road + inflation may be stable at the moment running at about N N + but if the fed <unk> too soon mr. greenspan fears prices may begin to accelerate again next year + moreover if the fed holds tight it may be able gradually to reduce inflation moving toward the <unk> goal that the fed chairman embraced in testimony to congress last week + so far mr. greenspan 's cautious approach to policy has served both him and the nation well + his hand on the monetary <unk> seems one reason why the economy next month seems highly likely to begin an unprecedented eighth year of <unk> growth without a recession + we 've gotten through two stock market crashes and we 've gone through an election without any major problems says david <unk> an economist of kemper financial services + i think you have to give greenspan a good rating + but such caution is no guarantee against mistakes + the fed 's reluctance to ease credit now could be laying the <unk> for a new recession perhaps starting early next year + if that happens chairman greenspan could well become an open target + already congress is <unk> with legislation to curb the fed 's independence + if the economy turns down such proposals could gain strong momentum + the following issues were recently filed with the securities and exchange commission + <unk> environmental inc. initial offering of N million shares of which <unk> will sell N and <unk> will sell N shares via oppenheimer & co + <unk> co. proposed offering of N common shares by holders via robert w. <unk> & co. and william blair & co + first capital holdings corp. proposed offering of $ N million of floating rate senior notes via shearson lehman hutton inc + industrial funding corp. initial offering of common stock via alex brown & sons inc. and <unk> <unk> & <unk> + <unk> technology corp. initial offering of N million common shares of which N shares will be sold by the company and N shares by holders via alex brown & sons hambrecht & quist and <unk> arnold & henderson + union camp corp. shelf offering of up to $ N million of debt securities + spencer j. <unk> president and chief operating officer of this consumer and industrial products company was elected a director + mr. <unk> N years old succeeds <unk> <unk> who retired in september + in an age of <unk> the federal judiciary is one of the last <unk> of the <unk> + a judge must jump from murder to antitrust cases from <unk> to securities fraud without missing a beat + but even on the federal bench <unk> is creeping in and it has become a subject of sharp controversy on the newest federal appeals court + the court of appeals for the federal circuit was created in N to serve among other things as the court of last resort for most patent disputes + previously patent cases moved through the court system to one of the N circuit appeals courts + there judges who saw few such cases and had no experience in the field <unk> with some of the most technical and complex disputes <unk> + a new specialty court was sought by patent experts who believed that the <unk> had <unk> too many important multimillion-dollar cases + some patent lawyers had hoped that such a specialty court would be filled with experts in the field + but the reagan administration thought otherwise and so may the bush administration + since N the president has filled four <unk> in the federal circuit court with <unk> lawyers + now only three of the N judges <unk> <unk> chief judge howard t. markey N and <unk> rich N have <unk> backgrounds + the latter two and judge daniel m. <unk> N are approaching senior status or retirement + three seats currently are vacant and three others are likely to be filled within a few years so patent lawyers and <unk> industries are making a new push for specialists to be added to the court + several organizations including the industrial <unk> association and the pharmaceutical manufacturers association have asked the white house and justice department to name candidates with both patent and scientific backgrounds + the associations would like the court to include between three and six judges with specialized training + some of the associations have recommended dr. alan d. <unk> N a former patent agent with a <unk> in organic chemistry who now is associate general counsel with <unk> <unk> corp. in philadelphia + dr. <unk> says the justice department interviewed him last july + their effort has received a <unk> response from the justice department + we do not feel that seats are reserved for patent lawyers says justice spokesman david runkel who declines to say how soon a candidate will be named + but we will take it into consideration + the justice department 's view is shared by other lawyers and at least one member of the court judge h. robert mayer a former civil <unk> who served at the claims court trial level before he was appointed to the federal circuit two years ago + i believe that any good lawyer should be able to figure out and understand patent law judge mayer says adding that it 's the responsibility of highly paid lawyers who argue before the court to make us understand complex patent litigation + yet some lawyers point to eli lilly & co. vs. <unk> inc. the patent infringement case the supreme court this month agreed to review as an example of poor legal <unk> by judges who lack patent litigation experience + judge mayer was not on the <unk> panel + in the lilly case the appeals court broadly <unk> a federal statute to grant <unk> a medical device manufacturer an exemption to <unk> a patent under certain circumstances + if the supreme court holds in <unk> 's favor the decision will have billion-dollar consequences for the manufacturers of medical devices color and food <unk> and all other <unk> products that required food & drug administration approval + <unk> <unk> a lawyer and director of government relations for the industrial <unk> association contends that a judge <unk> in patent law and the concerns of <unk> industries would have ruled otherwise + and judge <unk> a former patent lawyer wrote in her dissent when the court denied a motion for a <unk> of the case by the full court the panel 's judicial legislation has affected an important <unk> industry without regard to the consequences for research and innovation or the public interest + says ms. <unk> the judgment confirms our concern that the absence of patent lawyers on the court could prove troublesome + friday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac + posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae + posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + the financial accounting standards <unk> coming rule on disclosure involving financial instruments will be effective for financial statements with fiscal years ending after june N N + the date was misstated in friday 's edition + kidder peabody & co. is trying to struggle back + only a few months ago the <unk> securities firm seemed to be on the verge of a <unk> racked by internal <unk> and <unk> + its relationship with parent general electric co. had been <unk> since a big kidder insider-trading scandal two years ago + chief executives and presidents had come and gone + now the firm says it 's at a turning point + by the end of this year <unk> chairman <unk> cathcart the former chairman of illinois tool works who was <unk> as a <unk> man when ge brought him in to clean up kidder in N <unk> to his lake forest ill. home possibly to build a shopping mall on some land he owns + i 've done what i came to do at kidder he says + and that means <unk> michael carpenter president and chief executive since january will for the first time take complete control of kidder and try to make good on some <unk> plans + mr. carpenter says he will return kidder to <unk> as a great investment bank + wall street is <unk> skeptical + through the first nine months of the year kidder ranks a distant <unk> among underwriters of u.s. stocks and bonds with a N N market share up slightly from N N in the year-earlier period according to securities data co + it 's quite a fall from the early 1980s when kidder still was counted as an investment-banking powerhouse + gary s. <unk> president of the <unk> group an executive search firm said i 'd like to see kidder succeed + but they have to attract good senior bankers who can bring in the business from day one + in N kidder <unk> out a $ N million profit mainly because of severe cost cutting + its <unk> brokerage operation reported an estimated $ N million loss last year although kidder expects it to turn a profit this year + in fact kidder is a minor player in just about every business it does except computer-driven program trading in that controversial business only morgan stanley & co. rivals kidder + but even that niche is under attack as several wall street firms pulled back from program trading last week under pressure from big investors + mr. carpenter a former <unk> executive who has a love for task forces says he has done a complete <unk> of kidder in recent months + there have been a dizzying parade of studies of the firm 's operations + more than N new managing directors and senior vice presidents have been hired since january + the firm 's brokerage force has been trimmed and its <unk> staff increased to a record N people + mr. carpenter says that when he assumes full control kidder will finally tap the resources of ge + one of ge 's goals when it bought N N of kidder in N was to take advantage of <unk> between kidder and general electric capital corp. ge 's <unk> unit which has $ N billion in assets + the leveraged buy-out group of ge capital now reports to mr. carpenter + so far instead of <unk> up ge capital staffers and kidder investment bankers have <unk> + yet says mr. carpenter we 've really started to exploit the <unk> between ge capital and kidder peabody + the units have worked on N investment banking deals this year he says though not all of them have <unk> out + we 've had a good relationship with ge which is the first time you could say that <unk> let me withdraw that + it 's been a steadily improving relationship says mr. carpenter + still without many actual deals to show off kidder is left to stress that it finally has a team in place and that everyone works harder + a month ago the firm started serving dinner at about N each night about N to N of the N people in the investment banking operation have consistently been around that late + we are working significantly longer and harder than has been the case in the past says scott c. <unk> kidder 's head of investment banking since june + everywhere kidder <unk> the always working theme + a new in-house magazine kidder world which will focus on the firm 's <unk> strategy says mr. carpenter <unk> that on <unk> mr. <unk> often gets <unk> ideas while flying his <unk> <unk> <unk> on the way to <unk> + the firm 's new head of mergers and acquisitions under mr. <unk> <unk> <unk> talks of the opportunity to rebuild a franchise at kidder + the kidder name is one of only six or seven that every ceo recognizes as a viable alternative when considering a merger deal he says + now according to a kidder world story about mr. <unk> all the firm has to do is position ourselves more in the deal flow + with investment banking as kidder 's lead business where do kidder 's <unk> brokerage network and its N brokers fit in + mr. carpenter this month sold off kidder 's eight brokerage offices in florida and puerto rico to merrill lynch & co. <unk> speculation that kidder is getting out of the brokerage business entirely + mr. carpenter denies the speculation + to answer the brokerage question kidder in typical fashion completed a <unk> study + the result kidder will focus on rich individual investors and small companies much closer to the <unk> of goldman sachs & co. than a <unk> firm like merrill lynch or shearson lehman hutton inc + mr. carpenter notes that these types of investors also are sophisticated enough not to complain about kidder 's aggressive use of program trading + as part of the upscale push kidder is putting brokers through a <unk> training course turning them into investment <unk> with knowledge of corporate finance + they will get new and improved tools to sell particularly to the affluent investor says brokerage chief charles v. <unk> + <unk> the brokers will then be able to <unk> leads on corporate finance opportunities to kidder 's investment bankers possibly easing the longstanding tension between the two camps + however skeptics caution that this kind of <unk> between brokers and investment bankers looks great on paper but does n't always happen + kidder competitors are n't <unk> hostile to the firm as many are to a tough competitor like drexel burnham lambert inc. that does n't have kidder 's long history + however competitors say that kidder 's hiring binge involving <unk> staffers some with <unk> contract guarantees could <unk> unless there are results + the <unk> mr. cathcart says he has no worries about kidder 's future + mr. cathcart who will return to the <unk> <unk> co. board of directors in addition to his personal ventures is credited with bringing some basic <unk> and planning discipline to traditionally <unk> kidder + he also improved the firm 's compliance procedures for trading + mr. cathcart says he has had a lot of fun at kidder adding the crack about his being a <unk> man never bothered him + it was an absolutely <unk> line and one i used many times he says + smiling broadly when he talks about mr. carpenter mr. cathcart says the new kidder chief is going to be recognized shortly as one of the real leaders in the investment-banking business + in coming years mr. cathcart says kidder is <unk> <unk> <unk> + or as mr. carpenter again drawing on his <unk> background puts it we 're ready to implement at this point + under a proposal by democrats to expand individual retirement accounts a $ N contribution by a taxpayer in the N N <unk> would save $ N on his taxes + the savings was given incorrectly in friday 's edition + in what could prove a major addition to the philippines ' <unk> portfolio a taiwanese company signed a $ N million construction contract to build the centerpiece of a planned petrochemical complex + taiwan 's <unk> far east corp. a petrochemical company <unk> the agreement with an unidentified japanese contractor to build a <unk> <unk> according to <unk> lee who heads the philippine company set up to build and operate the complex + mr. lee president of luzon petrochemical corp. said the contract was signed wednesday in tokyo with <unk> far east officials + contract details however have n't been made public + the complex is to be located in <unk> about N miles south of manila + <unk> far east will hold a N N stake in luzon petrochemical according to papers signed with the philippine government 's board of investments + the proposed petrochemical plant would use <unk> to manufacture the petrochemicals <unk> and <unk> and their <unk> <unk> <unk> and polyethylene + these are the raw materials used in making plastics + the contract signing represented a major step in the <unk> petrochemical project + at an estimated $ N million the project would represent the single largest foreign investment in the philippines since president <unk> aquino took office in february N + it also is considered critical to the country 's efforts to both attract other investment from taiwan and raise heavy industry <unk> + the project has been in and out of the pipeline for more than a decade + however workers ca n't break ground until legal <unk> to block the complex are resolved moves which caused the signing to remain questionable up to the last moment + as previously reported a member of the philippines ' house of representatives has sued to stop the plant + the legislator <unk> garcia had actively backed the plant but at the original site in his constituency northwest of manila + the country 's supreme court dismissed the suit but mr. garcia late last month filed for a <unk> + in addition president aquino has yet to sign into law a bill removing a stiff N N tax on <unk> the principal raw material to be used in the <unk> + however at a news conference thursday mrs. aquino backed the project and said her government was attempting to <unk> the feelings of residents at the original site adjacent to the government 's major petroleum refinery in <unk> province + we have tried our best to tell the people in <unk> that maybe this time it will not go to them but certainly we will do our best to encourage other investors to go to their province mrs. aquino told <unk> foreign <unk> + the project appeared to be on the rocks earlier this month when the other major partner in the project china general plastics corp. backed out + china general plastics another taiwanese petrochemical manufacturer was to have a N N stake in luzon petrochemical + however mr. lee said that <unk> far east is confident other investors will take up the slack + he said <unk> far east has applied to both the asian development bank and the world bank 's international finance corp. for financing that could include equity stakes + three new issues begin trading on the new york stock exchange today and one began trading on the <unk> market system last week + on the big board <unk> & co. atlanta <unk> begins trading today + <unk> <unk> health care plans manages medical and <unk> aspects of worker 's compensation injuries and is involved in claims adjustments for insurance companies + also beginning trading today on the big board are el paso refinery limited partnership el paso texas <unk> and franklin <unk> trust san mateo calif. <unk> + el paso owns and operates a petroleum refinery + franklin is a closed-end management investment company + on the nasdaq over-the-counter system allied capital corp. washington d.c. <unk> began trading last thursday + allied capital is a closed-end management investment company that will operate as a business development concern + the yale political union does n't pay an <unk> to <unk> + in thursday 's edition it was incorrectly indicated that the union had paid a fee to former house speaker jim wright + president bush insists it would be a great tool for curbing the budget deficit and <unk> the <unk> out of government programs + he wants it now + not so fast says rep. <unk> edwards of oklahoma a fellow republican + i consider it one of the <unk> ideas of the 20th century he says + it 's the line-item veto a procedure that would allow the president to kill individual items in a big spending bill passed by congress without <unk> the entire bill + whatever one thinks of the idea it 's far more than the budgetary <unk> it may seem at first <unk> + rather it 's a device that could send shock waves through the president 's entire relationship with democrats and republicans alike in congress fundamentally enhance the power of the presidency and transform the way the government does its business + president bush badly wants a line-item veto and has long called for a law giving it to the president + now the white house is declaring that he might not rely on congress which has n't shown any willingness to surrender such authority to pass the line-item veto law he seeks + white house spokesmen last week said mr. bush is considering simply declaring that the constitution gives him the power exercising a line-item veto and inviting a court challenge to decide whether he has the right + although that may sound like an <unk> maneuver of little interest outside washington it would set off a political earthquake + the <unk> are enormous says rep. don edwards a california democrat who is a senior member of the house judiciary committee + it 's a real face-to-face arm <unk> challenge to congress + white house aides know it 's a step that ca n't be taken <unk> and for that reason the president may back down from launching a test case this year + some senior advisers argue that with further fights over a capital-gains tax cut and a <unk> bill looming mr. bush already has enough pending <unk> with congress + they prefer to put off the line-item veto until at least next year + still mr. bush and some other aides are strongly drawn to the idea of trying out a line-item veto + the issue arose last week when vice president dan quayle told an audience in chicago that mr. bush was looking for a test case + white house press secretary marlin fitzwater confirmed that mr. bush was interested in the idea but cautioned that there was n't a firm decision to try it + mr. bush former president reagan and a host of conservative activists have been arguing that a line-item veto would go a long way in restoring discipline to the budget process + they maintain that a president needs the ability to <unk> remove pork-barrel spending projects that are attached to big omnibus spending bills + those bills ca n't easily be vetoed in their <unk> because they often are needed to keep the government operating + conservatives note that N governors have the line-item veto to use on state budgets + more <unk> some conservative legal <unk> have begun arguing that mr. bush does n't need to wait for a law giving him the veto because the power already is implicit in the constitution + they base their argument on a clause buried in article i section N of the constitution that states every order resolution or vote to which the <unk> of the senate and house of representatives may be necessary except on a question of <unk> shall be presented to the president of the united states and before the same shall take effect shall be approved by him or <unk> by him + this clause they argue is designed to go beyond an earlier clause <unk> that the president can veto a bill and is broad enough to allow him to strike out items and riders within bills + senate minority leader robert dole r. kan. for one <unk> this argument and earlier this year publicly urged mr. bush to use the line-item veto and allow the courts to decide whether or not it is constitutional + there 's little doubt that such a move would be immediately challenged in court and that it would quickly make its way to the supreme court to be ultimately resolved + it 's a major issue and they would n't want to leave it at a lower level says stephen <unk> a new york attorney whose <unk> have been instrumental in pushing the idea that a president already has a line-item veto + rep. edwards the california democrat is one who <unk> that he would immediately challenge mr. bush in the courts arguing a line-item veto would expand a president 's powers far beyond anything the <unk> of the constitution had in mind + it puts this president in the legislative business he declares + that 's not what our <unk> had in mind + in addition to giving a president powers to rewrite spending bills meant to be written in congress rep. edwards argues a line-item veto would allow the chief executive to <unk> lawmakers + he notes that as a <unk> from the san francisco area he fights each year to preserve federal funds for the bay area rapid transit system + if a president had a line-item veto and wanted to force him to support a controversial <unk> initiative rep. edwards says the president could call and declare that he would <unk> kill the bart funds unless the congressman <unk> up on the <unk> issue + proponents maintain that a president would choose to use a line-item veto more <unk> than that + but there may be another problem with the device despite all the political <unk> it would cause it might n't be effective in cutting the deficit + big chunks of the government budget like the <unk> programs of social security and medicare would n't be affected + governors have found that they have to use the device <unk> to maintain political <unk> + and it is n't even clear that some pork-barrel projects can be hit with a line-item veto because they tend to be listed in informal conference reports accompanying spending bills rather than in the official bills themselves + still proponents contend that the veto would have what mr. <unk> calls an important <unk> effect on all manner of appropriations bills + lawmakers they say would avoid putting many spending projects into legislation in the first place for fear of the embarrassment of having them singled out for a line-item veto later + whatever the outcome of a test case president bush would have to move cautiously <unk> the very attempt would <unk> not just democrats but republicans says louis fisher a scholar at the congressional research service who specializes in <unk> relations + republicans have as much interest as democrats in the way the system works he notes + indeed although a majority of republican lawmakers favor a line-item veto some ranging from liberal oregon sen. mark <unk> to conservative rep. edwards are opposed + rep. edwards voices the traditional conservative view that it 's a mistake to put too much power in the hands of a single person + conservatives pushing for a line-item veto now he notes may regret it later sometime you 're going to have a democratic president again who 'll use his expanded powers against those very same conservatives + every order resolution or vote to which the <unk> of the senate and house of representatives may be necessary except on a question of <unk> shall be presented to the president of the united states and before the same shall take effect shall be approved by him or being <unk> by him shall be <unk> by two-thirds of the senate and house of representatives according to the rules and limitations prescribed in the case of a bill + this has n't been kellogg co. 's year + the <unk> craze has cost the world 's largest cereal maker market share + the company 's president quit suddenly + and now kellogg is indefinitely <unk> work on what was to be a $ N billion cereal plant + the company said it was delaying construction because of current market conditions + but the memphis tenn. facility was n't to begin turning out product until N so the decision may reveal a more pessimistic long-term outlook as well + kellogg which has n't been as successful in <unk> on the public 's <unk> desire for oat bran as rival general mills inc. has been losing share in the $ N billion <unk> cereal market + kellogg 's current share is believed to be slightly under N N while general mills ' share is about N N + led by its <unk> <unk> line general mills has gained an estimated N N share so far this year mostly at the expense of kellogg + each share point is worth about $ N million in sales + analysts say much of kellogg 's erosion has been in such core brands as corn <unk> rice <unk> and <unk> <unk> which represent nearly one-third of its sales volume + kellogg is so anxious to turn around corn <unk> sales that it soon will begin selling boxes for as little as N cents trade sources say + <unk> and <unk> <unk> <unk> have <unk> away sales normally going to kellogg 's <unk> lines simply because they are made of <unk> says merrill lynch food analyst william <unk> + they are not a happy group of people at battle creek right now + kellogg is based in battle creek mich. a city that calls itself the breakfast capital of the world + another analyst john c. maxwell jr. of wheat first securities in richmond va. recently went to a sell recommendation on kellogg stock which closed friday at $ N down N cents in new york stock exchange composite trading + i do n't think kellogg can get back to N N this year he said + kellogg 's main problem is life style + people are reading the boxes and deciding they want something that 's healthy for you <unk> bran + mr. maxwell said he would n't be surprised if over the next two years or so general mills ' share increased to N N or more + in announcing the plant delay kellogg chairman william e. <unk> said cereal volume growth in the u.s. has not met our expectations for N + he said construction would n't resume until market conditions warrant it + kellogg indicated that it has room to grow without adding facilities + the company has five other u.s. plants including a modern facility at its battle creek headquarters known as building N which is to add <unk> and <unk> capacity next year + general mills meanwhile finds itself <unk> from boosting sales further because its plants are operating at capacity + a large plant in <unk> ga. is to come on line next year + a kellogg officer who asked not to be named said the memphis project was pulled in for a <unk> of costs an indication that the ambitious plans might be scaled back in any future construction + initial cost estimates for the plant which was to have been built in <unk> ranged from $ N billion to $ N billion + a company spokesman said it was possible but highly unlikely that the plant might never be built + as we regain our leadership level where we have been and as we continue to put new products into the marketplace and need additional capacity we will look at <unk> our involvement with our plan he said + the new facility was to have been the world 's most advanced cereal manufacturing plant and kellogg 's largest construction project + the company had retained the fluor daniel unit of fluor corp. as general contractor + but in recent weeks <unk> sources reported that early preparation work was slowing at the <unk> site + <unk> said they were told that equipment orders would be delayed + fluor daniel already has <unk> most of its work crew the sources said + last friday 's announcement was the first official word that the project was in trouble and that the company 's plans for a surge in market share may have been overly optimistic + until recently kellogg had been telling its sales force and wall street that by N it intended to achieve a N N share of market measured in dollar volume + although he called current market conditions highly competitive mr. <unk> kellogg 's chairman and chief executive officer forecast an earnings increase for the full year + last year the company earned $ N million or $ N a share on sales of $ N billion + as expected kellogg reported lower third-quarter earnings + net fell N N to $ N million or $ N a share from $ N million or $ N a share + sales rose N N to $ N billion from $ N billion + the company had a one-time charge of $ N million in the latest quarter covering the <unk> of certain assets + the company would n't elaborate citing competitive reasons + parker <unk> corp. which is selling three automotive replacement parts divisions said it will retain its automotive <unk> and <unk> impact divisions + the divisions that parker <unk> is retaining were n't mentioned in thursday 's edition + the following were among friday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + sun microsystems inc. $ N million of N N N convertible subordinated debentures due oct. N N priced at N to yield N N + the debentures are convertible into common stock at $ N a share representing a N N conversion premium over thursday 's closing price + rated <unk> by moody 's investors service inc. and <unk> by standard & poor 's corp. the issue will be sold through underwriters led by goldman sachs & co + hertz corp. $ N million of senior notes due nov. N N priced at par to yield N N + the issue which is <unk> back to the company in N was priced at a spread of N basis points above the treasury 's 10-year note + rated single-a-3 by moody 's and <unk> by s&p the issue will be sold through underwriters led by merrill lynch capital markets + canadian imperial bank of commerce canada N billion yen of N N bonds due nov. N N priced at N N to yield N N less full fees via <unk> international ltd + fees N N + the singapore and kuala lumpur stock exchanges are bracing for a <unk> separation following <unk> finance minister <unk> <unk> 's long-awaited announcement that the exchanges will <unk> ties + on friday <unk> <unk> added <unk> to an otherwise <unk> address on malaysia 's proposed budget for N by ordering the kuala lumpur stock exchange to take appropriate action immediately to cut its links with the stock exchange of singapore + the <unk> of <unk> companies from the singapore exchange may not be a smooth process analysts say + though the split has long been expected the exchanges are n't fully prepared to go their separate ways + the finance minister 's order was n't sparked by a single event and does n't indicate a <unk> in relations between the neighboring countries + rather the two closely linked exchanges have been <unk> apart for some years with a nearly <unk> <unk> on new dual listings separate and different listing requirements <unk> trading and settlement guidelines and <unk> <unk> aims + quantum chemical corp. 's plant in morris ill. is expected to resume production in early N + the year was misstated in friday 's editions + italy 's trade deficit narrowed to N trillion lire $ N billion in september from N trillion lire a year earlier the state statistical office istat said + the deficit was N billion lire in august + for the first nine months the trade deficit was N trillion lire compared with N trillion lire in the year-earlier period + istat said the statistics are provisional and are n't seasonally adjusted + imports rose N N to N trillion lire in september from a year earlier while exports rose N N to N trillion lire + in the nine months imports rose N N to N trillion lire while exports grew N N to N trillion lire + import values are calculated on a cost insurance and freight <unk> basis while exports are accounted for on a <unk> <unk> basis + as competition <unk> up in spain 's crowded bank market banco exterior de <unk> is seeking to shed its image of a state-owned bank and move into new activities + under the direction of its new chairman francisco luzon spain 's seventh largest bank is <unk> a tough restructuring that analysts say may be the first step toward the bank 's privatization + the state-owned industrial holding company <unk> <unk> de <unk> and the bank of spain jointly hold a N N stake in banco exterior + the government directly owns N N and <unk> a financial services company holds N N + the rest is listed on spanish stock exchanges + some analysts are concerned however that banco exterior may have waited too long to diversify from its traditional <unk> activities + catching up with commercial competitors in retail banking and financial services they argue will be difficult particularly if market conditions turn sour + if that proves true analysts say banco exterior could be a prime partner or even a takeover target for either a spanish or foreign bank seeking to increase its market share after N when the european community plans to <unk> financial barriers + with N branches in spain and N banking subsidiaries five branches and N representative offices abroad the banco exterior group has a lot to offer a potential suitor + mr. luzon and his team however say they are n't interested in a merger + instead they are working to transform banco exterior into an efficient bank by the end of N + i want this to be a model of the way a <unk> company should be run mr. luzon says + banco exterior was created in N to provide subsidized credits for spanish exports + the market for export financing was <unk> in the mid-1980s however forcing the bank to face competition + at the same time many of spain 's traditional export markets in latin america and other developing areas faced a sharp decline in economic growth + as a result the volume of banco exterior 's export credit portfolio plunged from N billion <unk> $ N billion as of dec. N N to its current N billion pesetas + the other two main <unk> of banco exterior 's traditional business wholesale banking and foreign currency trading also began to <unk> under the weight of heavy competition and changing client needs + the bank was <unk> in its efforts to face the challenges of a changing market by its links to the government analysts say + until mr. luzon took the helm last november banco exterior was run by politicians who lacked either the skills or the will to introduce innovative changes + but mr. luzon has moved swiftly to streamline bureaucracy cut costs increase capital and build up new areas of business + we 've got a lot to do he acknowledged + we 've got to move quickly + in mr. luzon 's first year the bank eliminated N jobs + now it says it 'll trim another N jobs over the next three to four years + the bank employs N people in spain and N abroad + to strengthen its capital base banco exterior this year issued $ N million in subordinated debt launched two rights issues and sold stock held in its treasury to small investors + the bank is now aggressively marketing retail services at its domestic branches + last year 's drop in export credit was partially offset by a N N surge in lending to individuals and small and medium-sized companies + though spain has an excess of banks analysts say the country still has one of the most profitable markets in europe which will aid banco exterior with the tough tasks it faces ahead + expansion plans also include acquisitions in growing foreign markets + the bank says it 's interested in purchasing banks in <unk> portugal and puerto rico + but the bank 's retail activities in latin america are likely to be cut back + banco exterior was one of the last banks to create a brokerage house before the four spanish stock exchanges <unk> sweeping changes in july + the late start may be a <unk> for the bank as spain continues to open up its market to foreign competition + but mr. luzon contends that the experienced team he brought with him from banco <unk> <unk> where he was formerly director general will whip the bank 's capital market division into shape by the end of N + the bank also says it 'll use its international network to channel investment from london frankfurt zurich and paris into the spanish stock exchanges + general motors corp. 's general counsel hopes to cut the number of outside law firms the auto maker uses from about N to N within two years + harry j. pearce named general counsel in may N says the reduction is a cost-cutting measure and an effort to let the no. N auto maker 's <unk> in-house legal department take on matters it is better equipped and trained to handle + gm trimmed about N firms from its approved local counsel list mr. pearce says + the move is consistent with a trend for corporate legal staffs to do more work in-house instead of <unk> it out to law firms + mr. pearce set up gm 's first in-house litigation group in may with four lawyers all former assistant u.s. attorneys with extensive trial experience + he intends to add to the litigation staff + among the types of cases the in-house <unk> handle are disputes involving companies doing business with gm and <unk> actions including one in which a driver is suing gm for damages resulting from an accident + mr. pearce has also encouraged his staff to work more closely with gm 's technical staffs to help prevent future litigation + gm lawyers have been working with technicians to develop more uniform <unk> procedures the way a vehicle is <unk> has a lot to do with its <unk> + the lawyers also monitor suits to identify specific automobile parts that cause the biggest legal problems + mr. pearce says law firms with the best chance of retaining or winning business with gm will be those providing the <unk> service at the best cost <unk> similar <unk> from gm 's auto operations to suppliers + this does n't necessarily mean larger firms have an advantage mr. pearce said gm works with a number of smaller firms it <unk> highly + mr. pearce has shaken up gm 's legal staff by eliminating all titles and establishing several new functions including a <unk> group that has made films on safety and drunk driving + federal prosecutors are concluding fewer criminal cases with trials + that 's a finding of a new study of the justice department by researchers at <unk> university + david burnham one of the authors says fewer trials probably means a growing number of plea bargains + in N N N of federal prosecutions concluded at trial in N only N N did + the study covered N major u.s. attorneys ' offices including those in manhattan and brooklyn n.y. and new jersey from N to N + the justice department rejected the implication that its prosecutors are currently more willing to plea bargain + our felony <unk> have been consistent for N years with about N N of all prosecutions going to trial a department spokeswoman said + the <unk> is somewhat <unk> in that the <unk> researchers said they based their conclusions on government statistics + one possible explanation for this decline in taking cases to trial says mr. burnham is that the number of defendants being charged with crimes by all u.s. attorneys has substantially increased + in N the study says prosecutors surveyed filed charges against N defendants for each N people aged N years and older + in N prosecutors filed against N defendants for every N adults + another finding from the study prosecutors set significantly different priorities + the manhattan u.s. attorney 's office stressed criminal cases from N to N averaging N for every N adults + but the new jersey u.s. attorney averaged N + on the civil side the manhattan prosecutor filed an average of only N cases for every N adults during the same period the san francisco u.s. attorney averaged N + the study is to provide reporters academic experts and others raw data on which to base further inquiries + <unk> marcos asks for dismissal says she was <unk> + the former first lady of the philippines asked a federal court in manhattan to dismiss an indictment against her claiming among other things that she was <unk> from her <unk> + mrs. marcos and her late husband former philippines president ferdinand marcos were charged with <unk> more than $ N million from that country and then <unk> <unk> much of the money through purchases of prime real estate in manhattan + mrs. marcos 's attorneys asked federal judge john f. keenan to give them access to all u.s. documents about her alleged <unk> + the u.s. attorney 's office in documents it filed in response said mrs. marcos was making the <unk> and <unk> <unk> claim that she was <unk> into this country in order to obtain classified material in the case + the office also said mrs. marcos and her husband were n't brought to the u.s. against their will after mr. marcos was ousted as president + the prosecutor quoted statements from the <unk> in which they said they were in this country at the invitation of president reagan and that they were enjoying the <unk> of the u.s. + lawyers for mrs. marcos say that because she was taken to the u.s. against her wishes the federal court lacks jurisdiction in the case + the federal court of appeals in manhattan ruled that the dismissal of a N indictment against former bank of <unk> owner george <unk> should be <unk> + the indictment which was <unk> and apparently forgotten by investigators until N charges mr. <unk> and three others with tax fraud and other violations + he made numerous trips to the u.s. in the early 1980s but was n't arrested until N when he showed up as a guest of <unk> president george bush at a government function + a federal judge in manhattan threw out the indictment finding that the seven-year delay violated the defendant 's constitutional right to a <unk> trial + the appeals court however said the judge did n't adequately consider whether the delay would actually hurt the chances of a fair trial + mr. <unk> is fighting <unk> proceedings that would return him to greece where he is charged with <unk> more than $ N million from the bank of <unk> + his attorney could n't be reached for comment + pro bono <unk> in an effort to <unk> off a plan that would require all lawyers in new york state to provide <unk> hours of free legal aid a year the state bar recommended an alternative program to increase voluntary participation in pro bono programs + the state bar association 's policy making body the house of delegate voted saturday to ask chief judge <unk> <unk> to give the bar 's voluntary program three years to prove its effectiveness before considering mandatory pro bono + we believe our suggested plan is more likely to improve the availability of quality legal service to the poor than is the proposed mandatory pro bono plan and will achieve that objective without the <unk> <unk> administrative burdens and possible failure that we fear would <unk> an attempt to impose a mandatory plan said justin l. <unk> of rochester who headed the bar 's pro bono study committee + dallas and houston law firms merge jackson & walker a <unk> firm in dallas and <unk> & <unk> a <unk> firm in houston said they have agreed in principle to merge + the consolidated firm which would rank among the N largest in texas would operate under the name jackson & walker + the merger must be formally approved by the partners of both firms but is expected to be completed by year end + jackson & walker has an office in fort worth texas and <unk> & <unk> has an office in new orleans + <unk> on + <unk> on government <unk> that general electric co. may have covered up fraudulent billings to the pentagon two shareholders have filed a civil racketeering suit against the company + the suit was filed by plaintiffs ' securities lawyer richard d. <unk> in u.s. district court in philadelphia + he seeks damages from the company 's N directors on grounds that they either participated in or <unk> the illegal acts or utterly failed to carry out their duties as directors + ge is defending itself against government criminal charges of fraud and false claims in connection with a <unk> contract for the army + the trial begins today in federal court in philadelphia + the government 's <unk> of the <unk> were made in last minute pretrial <unk> + ge which <unk> denies the government 's allegations denounced mr. <unk> 's suit + it is a <unk> suit <unk> defective and <unk> <unk> which was <unk> filed by a <unk> lawyer as a result of newspaper reports said a ge spokeswoman + she added that the company was considering bringing sanctions against mr. <unk> for making grossly inaccurate and <unk> allegations + the head of the nation 's largest <unk> group is telling dealers to just say no when auto makers pressure them to <unk> cars on their lots + in an open letter that will run today in the trade journal automotive news ron <unk> president of the national car dealers association says dealers should cut their inventories to no more than half the level traditionally considered desirable + mr. <unk> who has been <unk> with the big three since he took office earlier this year said that with half of the nation 's dealers losing money or breaking even it was time for emergency action + u.s. car dealers had an average of N days ' supply of cars in their lots at the end of september according to ward 's automotive reports + but mr. <unk> said dealers should slash stocks to between N and N days to reduce the costs of financing inventory + his message is getting a <unk> reception in detroit where the big three auto makers are already being forced to close plants because of soft sales and reduced dealer orders + even before mr. <unk> 's <unk> some large dealers said they were cutting inventories + ford motor co. and chrysler corp. representatives criticized mr. <unk> 's plan as <unk> + it is going to sound neat to the dealer except when his <unk> car supply does n't include the bright red one that the lady wants to buy and she goes up the street to buy one a chrysler spokesman said + southern co. 's gulf power co. unit may plead guilty this week to charges that it illegally <unk> company money to politicians through outside vendors according to individuals close to an investigation of the utility holding company + the tentative settlement between gulf power a <unk> fla. electric company and federal prosecutors would mark the end of one part of a <unk> inquiry of southern co. in the past year + a grand jury has been investigating whether officials at southern co. conspired to cover up their accounting for spare parts to <unk> federal income taxes + the grand jury has also been investigating whether gulf power executives violated the federal utility holding company act which prohibits certain utilities from making political contributions + the individuals said gulf power and federal prosecutors are considering a settlement under which the company would plead guilty to two felony charges and pay fines totaling between $ N and $ N million + under one count gulf power would plead guilty to conspiring to violate the utility holding company act + under the second count the company would plead guilty to conspiring to <unk> taxes + the guilty <unk> would be made solely by gulf power the individuals said + no employee or vendor would be involved + a spokesman for southern co. would say only that discussions are continuing between gulf power and federal prosecutors + we have no further developments to report he said + officials at gulf power could n't be reached for comment + and prosecutors declined to comment + while southern co. has been reluctant to discuss the grand jury investigations edward l. <unk> chief executive officer has said the company is prepared to defend its tax and <unk> practices if any charges are brought against it + <unk> mr. <unk> has said southern co. and its units do n't <unk> illegal political contributions + neither mr. <unk> nor any other southern co. official has been charged with any wrongdoing in connection with the current inquiries + the probe of southern co. has attracted considerable attention this year because of several events that have <unk> the company including the death of a gulf power executive in a plane crash and the disappearance of a company vendor who was to be a key grand jury witness + witnesses have said the grand jury has asked numerous questions about jacob f. <unk> <unk> the senior vice president of gulf power who died in the plane crash in april + mr. <unk> <unk> gulf power 's <unk> efforts + on the morning of the crash he had been put on notice that an audit committee was recommending his dismissal because of <unk> <unk> in a company audit + investigators have been trying to determine whether the crash was an accident sabotage or <unk> + gulf power said in may that an internal audit had disclosed that at least one vendor had used false <unk> to fund political causes + but the company said the political contributions had been made more than five years ago + exxon corp. is resigning from the national wildlife federation 's corporate advisory panel saying the conservation group has been unfairly critical of the exxon <unk> oil spill along the alaskan coast + the federation said friday that it regrets the resignation but issued a <unk> response that called exxon a corporate <unk> that should keep an open dialogue with environmentalists + the federation with N million members nationwide has been one of the sharpest critics of exxon 's handling of the N million <unk> tanker spill and has accused the company of repeatedly ignoring requests to meet and discuss it + the march N oil spill <unk> hundreds of miles of <unk> along alaska 's southern coast and <unk> havoc with wildlife and the fishing industry + exxon 's exxon usa unit was one of the charter members of the corporate conservation council a panel of executives formed in N by the national wildlife federation to foster frank and open discussions between industry and the federation 's leaders + in a letter to the federation raymond <unk> exxon 's environmental coordinator said recent public actions by you regarding the <unk> oil spill have failed to demonstrate any sense of <unk> or fairness + the federation was among the plaintiffs in a lawsuit filed in august against exxon seeking full payment of environmental recovery costs from the spill + first tennessee national corp. said it would take a $ N million charge in the fourth quarter as a result of plans to expand its systems operation + the banking company said it reached an agreement in principle with international business machines corp. on a systems operations contract calling for ibm to operate first tennessee 's computer and telecommunications functions + further under the agreement first <unk> would continue to develop the software that creates customer products and <unk> + because personal computers will soon be on the desks of all of our <unk> and customer service and loan representatives information will be instantly available to help customers with product decisions and provide them with information about their accounts according to john <unk> executive vice president and corporate services group manager at first tennessee + however about N employees will be affected by the agreement + first tennessee <unk> by ibm said it will attempt to place the employees within the company ibm or other companies in memphis + the process will take as many as six months to complete the company said + the agreement is subject to the banking company 's board approval which is expected next month + the treasury department said the u.s. trade deficit may worsen next year after two years of significant improvement + in its report to congress on international economic policies the treasury said that any improvement in the <unk> measure of trade known as the current account is likely at best to be very modest and the possibility of deterioration in the current account next year can not be excluded + the statement was the u.s. government 's first <unk> of what other groups such as the international monetary fund have been predicting for months + continued strength in the dollar was cited as one reason the trade position may <unk> + the treasury 's report which is required annually by a provision of the N trade act again took south korea to task for its exchange-rate policies + we believe that there have continued to be indications of exchange-rate manipulation during the past six months it said citing the lack of market forces in south korea 's exchange-rate system and the use of capital and interest-rate controls to manipulate exchange rates + the treasury expressed pleasure however with the government of taiwan which was cited for exchange-rate manipulation in last year 's report + the treasury said taiwan has <unk> its exchange rate system in the past year + the fiscal N budget deficit figure came out friday + it was down a little + the next time you hear a member of congress <unk> about the deficit consider what congress did friday + the senate N voted to increase to $ N the ceiling on insured mortgages from the fha which lost $ N billion in loan defaults last year + then by voice vote the senate voted a pork-barrel bill approved thursday by the house for domestic military construction + compare the bush request to what the senators gave themselves + for construction in west virginia mr. bush requested $ N million congress gave senator byrd 's state $ N million + senator byrd is chairman of the appropriations committee + for iowa a $ N million request became $ N million for senator <unk> ranking minority member of a military construction subcommittee + rep. jamie whitten of mississippi and chairman of house appropriations turned a $ N million bush request for his state into a $ N million <unk> + senator <unk> of tennessee is chairman of the appropriations subcommittee on military construction mr. bush 's $ N million request for tennessee increased to $ N million + in a remark someone should remember this time next year senator <unk> said i think we 've seen the peak of military construction spending for many years to come + tell us about spending restraint + tell us about the hud scandals + tell us what measure short of house arrest will get this congress under control + costa rica reached an agreement with its creditor banks that is expected to cut that government 's $ N billion in bank debt by as much as N N + the agreement was announced by costa rican president <unk> arias friday as president bush and other leaders from the western <unk> gathered in the central american nation for a celebration of democracy + costa rica had been negotiating with the u.s. and other banks for three years but the debt plan was rushed to completion in order to be announced at the meeting + the government had fallen $ N million behind in interest payments + treasury secretary nicholas brady called the agreement an important step forward in the strengthened debt strategy noting that it will when implemented provide significant reduction in the level of debt and debt service owed by costa rica + under the plan costa rica will buy back roughly N N of its bank debt outstanding at a deeply discounted price according to officials involved in the agreement + the remainder of the debt will be exchanged for new costa rican bonds with a N N N interest rate + the international monetary fund and the world bank are expected to provide approximately $ N million to help support the deal and additional funds are expected from japan + treasury officials say the costa rican agreement demonstrates that the brady debt plan can benefit small <unk> countries as well as big <unk> such as mexico + the treasury said it plans to sell $ N billion of <unk> <unk> bills today raising all new cash + the bills will be dated oct. N and will mature dec. N + no <unk> tenders will be accepted + tenders available in minimum denominations of $ N million must be received by noon est today at federal reserve banks or branches + the treasury also announced details of this week 's unusual bill auction which has been changed to accommodate the expiration of the federal debt ceiling at midnight tomorrow + the 13-week and <unk> bills will be issued tomorrow rather than thursday nov. N as originally planned + the three-month bills will still mature feb. N N and the six-month bills on may N N + the treasury also said <unk> tenders will be considered timely if <unk> no later than sunday oct. N and received no later than tomorrow + the treasury said it wo n't be able to honor reinvestment requests from holders of bills maturing nov. N held in the treasury 's <unk> system + the department will make payment for bills maturing on nov. N to all investors who have requested reinvestment of their bills on that date as well as to all account holders who have previously requested payment + american pioneer inc. said it agreed in principle to sell its american pioneer life insurance co. subsidiary to <unk> <unk> <unk> inc. 's <unk> insurance cos. for $ N million + american pioneer parent of american pioneer savings bank said the sale will add capital and reduce the level of investments in subsidiaries for the thrift holding company + recently the boards of both the parent company and the thrift also voted to suspend dividends on preferred shares of both companies and convert all preferred into common shares + the company said the move was necessary to meet capital requirements + the transaction is subject to execution of a definitive purchase agreement and approval by various regulatory agencies including the insurance departments of the states of florida and indiana the company said + in the second quarter american pioneer reported a loss of $ N million compared with net income of $ N million a year earlier + the banking operation had a loss of $ N million in the second quarter largely because of problem real-estate loans while the insurance operations earned $ N + october employment data also could turn out to be the most confusing + on the surface the overall unemployment rate is expected to be little changed from september 's N N + but the actual head count of <unk> employment payroll jobs is likely to be <unk> by the impact of hurricane hugo strikes and <unk> seasonal adjustments economists said + the consensus view calls for an overall job gain of N compared with september 's N increase + but the important <unk> segment which last month plunged by N positions and raised recession fears is most likely to be <unk> by the month 's unusual events + several other reports come before friday 's jobs data including the september leading indicators index new-home sales and october agricultural prices reports due out tomorrow the october purchasing managers ' index and september construction spending and manufacturers ' orders on wednesday and october <unk> sales on thursday + friday brings the final count on october auto sales + the employment report is going to be difficult to interpret said michael <unk> economist with <unk> international a unit of mcgraw-hill inc. new york + mr. <unk> added that next month 's data is n't likely to be much better because it will be distorted by san francisco 's earthquake + what 's more he believes seasonal swings in the auto industry this year are n't <unk> at the same time as in the past because of production and pricing differences that are curbing the <unk> of seasonal adjustments built into the employment data + wednesday 's report from the purchasing agents will be watched to see if the index maintains a level below N N as it has for the past couple of months + a reading of less than N N indicates an economy that is generally contracting while a reading above N N indicates an economy that 's expanding + samuel d. <unk> chief financial economist at kleinwort benson government securities inc. chicago said that the purchasers ' report is valuable because it often presents the first <unk> of economic data for the month + but he added some people use the purchasers ' index as a leading indicator some use it as a <unk> indicator + but the thing it 's supposed to measure manufacturing strength it missed altogether last month + david wyss chief financial economist at data resources inc. boston said that the purchasers ' index does miss occasionally adding when it misses one month it tends to miss the next month too + the consensus view on september leading indicators calls for a gain of N N the same as in august + economists said greatly increased consumer optimism a larger money supply and higher stock prices helped lift the index + all <unk> components such as <unk> orders and building permits are thought to have been weaker + data resources ' mr. wyss added that he will be keeping a closer eye than <unk> on october <unk> sales + usually october is n't a very interesting month for retail figures because school clothes have been bought and people are waiting for december to buy christmas presents he said + but mr. wyss said he will watch the numbers to get an <unk> of whether consumers ' general buying habits may slack off as much as their <unk> apparently has + he noted that higher gasoline prices will help <unk> the october totals + seasonal factors are also expected to have taken their toll on september new-home sales which are believed to have fallen sharply from august 's N units + construction spending is believed to have slipped about N N from august levels although economists noted the rate probably will pick up in the months ahead in response to hurricane and earthquake damage + factory owners are buying new machinery at a good rate this fall machine tool makers say but sluggish sales of new cars and trucks raise questions about fourth-quarter demand from the important automotive industry + september orders for machine tools rebounded from the summer doldrums but remained N N below year-earlier levels according to figures from <unk> the association for manufacturing technology + domestic machine tool plants received $ N million of orders last month up N N from august 's $ N million but still below the $ N million of september N <unk> said + machine tools are complex machines ranging from <unk> to <unk> <unk> that are used to shape most metal parts + overall demand still is very respectable says christopher c. <unk> group vice president at cincinnati <unk> inc. the nation 's largest machine tool producer + the outlook is positive for the intermediate to long term + september orders for all u.s. producers in fact were slightly above the monthly average for N a good year for the industry + aerospace orders are very good mr. <unk> says + and export business is still good + while some automotive programs have been delayed they have n't been canceled + september was one of the biggest order months in our history says james r. roberts vice president world-wide sales and marketing for <unk> & lewis inc. <unk> du <unk> <unk> + at a recent meeting of manufacturing executives everybody i talked with was very positive he says + most say they plan to spend more on factory equipment in N than in N + but sales of north <unk> <unk> cars are running at an annual rate of only six million down from N million a year earlier + and truck sales also are off more than N N + auto makers who began deferring some equipment purchases last spring can be expected to remain cautious about spending if their sales do n't pick up machine tool builders say + machine tool executives are hopeful however that recent developments in eastern europe will expand markets for <unk> machine tools in that region + there is demand for <unk> machine tools in the soviet union and in other eastern european countries as those nations <unk> to improve the efficiency of their ailing factories as well as the quality of their goods + however there 's a continuing dispute between machine tool makers and the defense department over whether sophisticated u.s. machine tools would increase the soviet union 's military might + the commerce department says go and the defense department says stop complains one machine tool producer + if that controversy continues u.s. machine tool makers say west german and other foreign producers are likely to grab most of the sales in eastern europe + september orders for <unk> centers <unk> <unk> machines <unk> boring mills and other machines that shape metal by cutting totaled $ N million down N N from $ N million a year earlier but a N N increase from august 's $ N million <unk> said + orders last month for <unk> <unk> and other machinery to form metal with pressure surged to $ N million a N N rise from $ N million a year earlier and a N N gain from $ N million in august + today 's <unk> are large and costly machines and a few orders can produce a high total for one month that does n't necessarily indicate a trend + machine tool shipments last month were $ N million a N N rise from a year earlier and a N N increase from august + shipments have run well ahead of N all year as machine tool builders produce against relatively good backlogs + u.s. producers had a $ N billion backlog of unfilled orders at the end of september + that was up N N from a year earlier even though orders for the first nine months of N were down N N from the comparable N period + $ N + $ N + $ N + $ N + in <unk> stock market circles the <unk> is <unk> + at least N companies are coming to the capital market to raise $ N billion an amount never thought possible in india + when they talk mega-issues they 're truly talking <unk> says s.a. dave chairman of the securities and exchange board of india + the capital market is booming + but the mega-issues are raising <unk> about the rapidly <unk> indian capital market + one is whether there is enough money to fund the new issues without <unk> stock trading + moreover in the relatively <unk> indian stock markets investors frequently do n't know what they are getting when they subscribe to an issue + a prospectus in india does n't always tell a potential investor much + some of the large amounts are being raised by small firms + in addition once money is raised investors usually have no way of knowing how it is spent + some analysts are concerned that the mega-issues in such an <unk> environment could lead to a <unk> + the rate of failures will be much more than the rate of successes in the <unk> says <unk> patel a former chairman of the giant <unk> mutual fund the unit trust of india + they 're going to have <unk> + the indian stock markets have been on a five-year high with <unk> and <unk> since prime minister <unk> gandhi started <unk> industry + but the last stock market boom in N seems small compared with the current rush to market + the $ N billion that some N companies are looking to raise in the year ending march N compares with only $ N billion raised on the capital market in the previous fiscal year + in fiscal N before mr. gandhi came to power only $ N million was raised + this year 's biggest issue $ N million of convertible debentures by engineering company larsen & toubro ltd. is the largest in indian history + and it is n't the only giant issue together the top four issues will raise $ N billion + convertible debentures bonds that can later be converted into equity shares are the most popular instrument this year though many companies are also selling <unk> bonds or equity shares + these mega-issues are being propelled by two factors economic and political + in the past the socialist policies of the government strictly limited the size of new steel mills petrochemical plants car factories and other industrial concerns to <unk> resources and restrict the profits businessmen could make + as a result industry operated out of small expensive highly inefficient industrial units + when mr. gandhi came to power he <unk> in new rules for business + he said industry should build plants on the same scale as those outside india and benefit from economies of scale + if the output was too great for the domestic market he said companies should export + india 's <unk> businessmen had to be persuaded but they have started to think big + some of the projects being funded by the new issues are the first <unk> of mr. gandhi 's policy and they require more capital than the smaller industrial units built in the past + the industrial revolution has produced an explosion in the capital market which is a far cheaper source of funds than <unk> banks where interest rates for prime borrowers are around N N + the second factor spurring mega-issues is political + mr. gandhi has called general elections for november and many businessmen fear that he and his congress i party will lose + some companies are raising money in anticipation of a government less predictable than mr. gandhi 's and possibly more restrictive + the <unk> <unk> rumor mill also says that some of the money raised in the current spate of issues will be used as campaign donations before the elections + no one admits to anything but india 's <unk> have a history of making <unk> campaign donations + so far the mega-issues are a hit with investors + earlier this year <unk> iron & steel co. 's offer of $ N million of convertible debentures was oversubscribed + <unk> <unk> ltd. a marine construction company had similar success with a slightly smaller issue + larsen & toubro started accepting applications for its giant issue earlier this month bankers and analysts expect it to be oversubscribed + still to come are big issues by <unk> <unk> <unk> ltd. a petrochemical and <unk> company and <unk> <unk> corp india a semiconductor maker + while many investors are selling parts of their portfolios to buy the new issues prices on india 's N stock exchanges are holding up so far + i do n't think it will lead to any chaos in the secondary market says mr. patel only a sagging tendency + says <unk> <unk> chairman of the unit trust of india the markets are headed for growth <unk> of and <unk> before + but with growth come growing <unk> and never has this been <unk> on the indian capital market than now + in the past the government controlled the markets indirectly through its tight grip on industry itself + various ministries decided the products businessmen could produce and how much and government-owned banks controlled the financing of projects and monitored whether companies came through on promised plans + the government has been content with this far-reaching <unk> form of control exercised on a <unk> basis with no clear rules or guidelines + but now with large amounts being raised from investors the government 's <unk> on regulation and disclosure requirements has a more dangerous aspect + the securities and exchange board of india was set up earlier this year along the lines of the u.s. securities and exchange commission but new <unk> has n't pushed the legislation to make it operational + mr. dave its head acts <unk> and patient but he makes no <unk> about the need to get to work + <unk> or <unk> we feel the prospectus standards need to be considerably improved he says + disclosures are very poor in india + he says the big questions do you really need this much money to put up these investments have you told investors what is happening in your sector what about your track record are n't asked of companies coming to market + instead he says most investors have to rely on the <unk> indian press + an example is the biggest offering of them all larsen & toubro 's $ N million bond issue + the engineering company was acquired in a takeover earlier this year by the giant reliance textile group + although larsen & toubro had n't raised money from the public in N years its new owners frequently raise funds on the local market + reliance <unk> a $ N million petrochemical company in N that was at the time the largest public issue in indian history + the media has raised questions about larsen & toubro 's issue pointing out that it exceeds the company 's annual sales and its market capitalization + even <unk> is the case of <unk> <unk> a semiconductor company with N sales of $ N million that 's raising $ N million to build an iron plant + once the money is raised it is n't always certain how it is used + larsen & toubro for example says it 's raising $ N million to use as supplier credit on large engineering jobs + unlike other companies it has n't <unk> specific projects for the funds + and even when specific projects are described in <unk> the money often is used elsewhere according to analysts + someone must monitor where the funds are deployed says mr. dave + mr. patel agrees there is no proper monitoring and <unk> of the use of these funds + they 're trying to plug the various <unk> but they 're totally <unk> for this + because of the large amounts of money being raised the loose disclosure requirements and the casual monitoring of how the money is used some analysts fear that there could be a few <unk> which could hurt market confidence far more than the small <unk> that followed the boom of N + the government insists that such a possibility is low + it says that despite loose regulation of the market itself its longstanding regulation of industry will prevent such crashes + <unk> <unk> <unk> contributed to this article + lion nathan ltd. a new zealand brewing and retail concern said friday that bond corp holdings ltd. is committed to a transaction <unk> lion nathan would acquire N N of bond 's australian brewing assets + lion nathan issued a statement saying it is applying to australia 's national companies & securities commission the nation 's corporate <unk> agency for a <unk> to takeover regulations similar to that obtained by s.a. brewing holdings ltd + <unk> brewing an australian brewer last thursday was given approval to acquire an option for up to N N of bell resources ltd. a unit of bond corp + bell resources is acquiring bond 's brewing businesses for N billion australian dollars us$ N billion + s.a. brewing would make a takeover offer for all of bell resources if it exercises the option according to the commission + bond corp. a brewing property media and resources company is selling many of its assets to reduce its debts + lion nathan has a concluded contract with bond and bell resources said douglas <unk> chief executive of lion nathan + finnair finland 's state-owned airline joined the wave of global airline alliances and signed a <unk> cooperation agreement with archrival <unk> airlines system + under the accord finnair agreed to coordinate flights marketing and other functions with <unk> the <unk> airline of <unk> norway and sweden + the pact also calls for coordination between finnair and switzerland 's national carrier <unk> with which <unk> entered a similar alliance last month + finnair and <unk> said they plan to swap stakes in each other + neither disclosed details pending board meetings next month + officials hinted however that <unk> would take a stake of at least N N in finnair valued at about $ N million at current market prices + finnair would receive <unk> shares valued at the same amount officials said + general motors corp. and ford motor co. are now going head to head in the markets for shares of jaguar plc as gm got early clearance from the federal trade commission to boost its stake in the british luxury car maker + gm confirmed friday that it received permission late thursday from u.s. antitrust regulators to increase its jaguar holdings past the $ N million level + ford got a similar <unk> earlier in october and on friday jaguar announced that the no. N u.s. auto maker had raised its stake to N N or N million shares from N N earlier in the week + a spokesman for gm the no. N auto maker declined to say how many jaguar shares that company owns + in late trading friday jaguar shares <unk> the downward tide in london 's stock market and rose five pence to N pence $ N + trading volume was a moderately heavy N million shares + in the u.s. jaguar 's american depositary receipts were among the most active issues friday in national over-the-counter trading where they closed at $ N each up N cents + analysts expect that the two u.s. auto giants will move quickly to buy up N N stakes in jaguar setting up a potential bidding war for the prestigious jaguar brand + british government restrictions prevent any single shareholder from going beyond N N before the end of N without government permission + the british government which owned jaguar until N still holds a controlling golden share in the company + with the golden share as protection jaguar officials have rebuffed ford 's <unk> and moved instead to forge an alliance with gm + jaguar officials have indicated they are close to <unk> up a friendly alliance with gm that would preserve jaguar 's independence but no deal has been announced + ford on the other hand has said it 's willing to bid for all of jaguar despite the objections of jaguar chairman sir john <unk> + analysts continued to speculate late last week that ford may try to force the issue by calling for a special shareholder 's meeting and urging that the government and jaguar holders remove the barriers to a full bidding contest before december N + but a ford spokeswoman in dearborn said friday the company has n't requested such a meeting yet + individuals close to the situation believe ford officials will seek a meeting this week with sir john to <unk> their proposal for a full bid + any discussions with ford could postpone the <unk> deal headed for completion within the next two weeks + the gm agreement is expected to retain jaguar 's independence by involving an eventual N N stake for the u.s. auto giant as well as joint manufacturing and marketing ventures + jaguar and gm hope to win jaguar shareholders approval for the accord partly by <unk> it in a way that would n't preclude a full ford bid once the golden share expires + there 's either a minority stake package capable of getting jaguar shareholder approval or there is n't said one knowledgeable individual + if there is n't the deal wo n't be put forward to shareholders + union sentiment also could influence shareholder reaction to a <unk> accord + gm 's u.k. unit holds crucial talks today with union officials about its consideration of an <unk> port site for its first major engine plant in britain + one <unk> union leader said if they try to build it somewhere else in europe besides the u.k. they are going to be in big trouble with <unk> over any jaguar deal + these are the last words abbie hoffman ever <unk> more or less before he killed himself + and you are there sort of + abbie i 'm ok jack + i 'm ok + listening <unk> + i 'm out of bed + i got my feet on the floor + <unk> + two feet + i 'll see you wednesday thursday + he <unk> <unk> + abbie <unk> i 'll always be with you jack + do n't worry + abbie lies back and leaves the frame empty + of course that was n't the actual conversation the late <unk> activist protest leader and founder of the <unk> ever had with his brother + it 's a script <unk> together from interviews by cbs news for a <unk> a dramatic <unk> by an actor of mr. hoffman 's ultimately unsuccessful struggle with depression + the segment is soon to be broadcast on the cbs news series saturday night with <unk> chung thus further <unk> the <unk> between <unk> and reality in tv news + it is the new journalism come to television + ms. chung 's program is just one of several network shows and many more in <unk> that rely on the controversial technique of <unk> events using actors who are supposed to resemble real people living and dead + ms. chung 's however is said to be the only network news program in history to employ casting directors + abbie hoffman in this case is to be played by hollywood actor paul <unk> who is n't new to the character + he was mr. hoffman in a N los angeles production of a play called the chicago conspiracy trial + television news of course has always been part <unk> + broadcasters have a healthy appreciation of the role entertainment values play in <unk> an audience + but as cbs broadcast group president howard <unk> puts it the network now needs to broaden the <unk> of <unk> television and that includes some <unk> + since its premiere sept. N the show on which ms. chung appears has used an actor to <unk> the rev. <unk> johns a <unk> leader and one to play a <unk> drug dealer + it has <unk> the <unk> of pan am flight N over the scottish town of <unk> + on oct. N it did a <unk> of the <unk> and <unk> of associated press <unk> terry anderson who was <unk> in march N and is believed to be held in lebanon + the production had actors playing mr. anderson and former <unk> david <unk> the rev. benjamin <unk> and father lawrence <unk> + abc news has similarly <unk> out into entertainment <unk> + prime time live a new show this season featuring sam donaldson and <unk> <unk> has a studio audience that <unk> and that one night to the embarrassment of the network <unk> at the camera like the crowd on let 's make a deal + abc stops short of using an applause sign and a comic to warm up the audience + the stars do that themselves + nbc news has produced three episodes of an <unk> series produced by <unk> <unk> called yesterday today and tomorrow <unk> maria <unk> chuck <unk> and mary alice williams that also gives work to actors + call it a fad + or call it the wave of the future + nbc 's <unk> are produced by <unk> productions which also makes the successful prime-time nbc entertainment series <unk> <unk> + the marriage of news and theater if not exactly inevitable has been <unk> nonetheless + news programs particularly if they score well in the ratings appeal to the networks ' <unk> corporate parents because they are so much less expensive to produce than an entertainment show is somewhere between $ N and $ N for a one-hour program + entertainment shows tend to cost twice that + <unk> have been used successfully for several seasons on such syndicated tabloid tv shows as a current affair which is produced by the fox broadcasting co. unit of rupert murdoch 's news corp + that show whose host is ms. chung 's husband <unk> <unk> has a particular <unk> for <unk> <unk> and stories having to do with sex the robert chambers murder case the <unk> lowe tapes what have you + gerald stone the executive producer of a current affair says we have opened eyes to being a little less conservative and more <unk> in how to present the news + nowhere have eyes been opened wider than at cbs news + at N w. <unk> st. in manhattan one floor below the offices of N minutes the most successful prime-time news program ever actors wait in the reception area to <unk> for saturday night with <unk> chung + cbs news sends scripts to agents who pass them along to clients + the network deals a lot with <unk> including scott <unk> who portrayed mr. anderson and bill <unk> as father <unk> but the network has some big names to contend with too + james <unk> jones is cast to play the rev. mr. johns + <unk> <unk> may <unk> former california gov. pat brown in a <unk> <unk> on <unk> <unk> the last man to be executed in california in N + saturday night has cast actors to appear in future stories ranging from the abortion rights of <unk> to a nov. N segment on a man named <unk> <unk> who calls himself a monster and is <unk> to be the <unk> prisoner in new york + cbs news which as recently as two years ago fired hundreds of its employees in budget cutbacks now <unk> featured actors beginning at $ N a week + that is n't much compared with what bill cosby makes or even <unk> chung for that matter who is paid $ N million a year and who recently did a guest shot of her own on the <unk> murphy brown + but the money is n't peanuts either particularly for a news program + cbs news is also <unk> the N three mile island nuclear accident in <unk> pa. with something less than a cast of thousands + it is <unk> the town of N for about N <unk> + on oct. N the town 's mayor robert <unk> made an announcement on behalf of cbs during <unk> at the <unk> high school football game asking for <unk> + there was a roll of <unk> through the stands says joe <unk> the editor of the weekly press and journal in <unk> + they 're <unk> right now at the bank down the street and they want shots of people getting out of cars and kids on <unk> + they are approaching everyone on the street and asking if they want to be in a <unk> + mr. <unk> says he would n't dream of participating himself + no way + i think <unk> <unk> + though a <unk> may have the flavor hollywood on the hudson it is n't + some producers seem tentative about the technique <unk> even + so the results while not news are n't exactly theater either at least not good theater + and some people do think that acting out scripts is n't worthy of cbs news which once lent prestige to the network and set standards for the industry + in his review of saturday night with <unk> chung tom <unk> the tv critic of the washington post and generally an <unk> of cbs wrote that while the show is impressive one has to wonder if this is the proper direction for a network news division to take + <unk> events has in general upset news <unk> including former cbs news president richard s. <unk> and former nbc news president <unk> frank former cbs news <unk> walter <unk> and the new dean of the columbia university graduate school of journalism joan <unk> + says she once you add <unk> it 's no longer news it 's drama and that has no place on a network news broadcast + they should never be on + never + criticism of the abbie hoffman segment is particularly <unk> among people who knew and loved the man + that includes his companion of N years <unk> <unk> as well as his former wife <unk> + both women say they also find it <unk> that cbs news is apparently concentrating on mr. hoffman 's problems as a <unk> + this is dangerous and <unk> abbie 's life says ms. <unk> who has had an advance look at the <unk> script + it 's a <unk> piece about someone who is not here to defend himself + mrs. hoffman says that <unk> makes the truth flexible + it takes one person 's account and gives it <unk> + cbs news interviewed jack hoffman and his sister <unk> as well as mr. hoffman 's <unk> in <unk> township pa + also jonathan <unk> who <unk> with mr. hoffman on two books + mr. <unk> says i wanted to be interviewed to get abbie 's story out and maybe talking about the illness will do some good + the executive producer of saturday night with <unk> chung andrew lack declines to discuss <unk> as a practice or his show in particular + i do n't talk about my work he says + the president of cbs news david w. burke did n't return numerous telephone calls + one person close to the process says it would not be in the best interest of cbs news to comment on a work in progress such as the hoffman <unk> but says cbs news is aware of the concerns of ms. <unk> and mr. hoffman 's former wife + neither woman was invited by cbs news to participate in a <unk> discussion about mr. hoffman that is to follow the <unk> + mr. <unk> the actor who plays mr. hoffman says he was concerned at first that the script would <unk> an <unk> political mind one that i <unk> but that his concerns were <unk> + the producers he says did a good job of <unk> someone who had done so much but who was also a <unk> + dentsu inc. the world 's largest advertising agency on the strength of its dominance in the japanese market is setting its sights on overseas expansion + last year dentsu started <unk> a joint network with u.s. ad agency young & rubicam and eurocom of france + a few months ago dentsu acquired N N of australian agency fortune communication holdings ltd. for N million australian dollars us$ N million + dentsu has u.s. subsidiaries but they keep low <unk> + now the giant marketing company which holds N N of japan 's N trillion yen $ N billion advertising industry is considering the acquisition of an advertising network in the u.s. or europe + what is driving dentsu 's international expansion largely is the need to keep up with its japanese clients as they grow in the u.s. and europe + if we do n't do something we wo n't be able to catch up with demand says a dentsu spokesman + our president said acquisition is an effective method + last year dentsu 's foreign business accounted for less than N N of total billings but the company is aiming at N N in the near future + so far it appears cautious about taking the big step + for example the spokesman says dentsu has been approached by banks and securities companies a number of times to invest in the troubled british marketing group saatchi & saatchi plc + but he said dentsu has n't looked seriously at saatchi + though dentsu says it has no concrete acquisition plans or deadlines it is laying the <unk> for international growth + it is setting up a special team in charge of international markets and training workers to do business abroad + for the year ended march N dentsu sales rose N N to $ N billion from $ N billion and net income jumped N N to $ N million from $ N million + dentsu 's billings last year were larger than those of young & rubicam the world 's second-largest ad agency according to a survey by the publication advertising age + but success overseas in <unk> markets could be <unk> than for other industries such as manufacturers + on its own dentsu 's muscle in japan may count for little in major foreign markets when seeking <unk> clients + thus an acquisition may prove the necessary course + but japanese agencies are cautious about expanding abroad because client relationships are different + japanese agencies do business with rival clients in the same industry a practice that would be <unk> by traditional western conflict rules says roy <unk> the london chief executive of saatchi & saatchi 's communications division + although acquiring a foreign company would expand japanese advertising agencies ' business to foreign clients many clients would also be japanese companies expanding overseas says the dentsu spokesman + but the different business system would make it hard for dentsu to provide these japanese companies the same kind of services they do in japan + ciba-geigy ag the big swiss chemicals company said that it agreed in a letter of intent with corning inc. to acquire corning 's N N share of <unk> corning <unk> corp. based in <unk> mass + <unk> corning which had been a N venture between <unk> ciba-geigy and corning has annual sales of about $ N million the announcement said + terms of the transaction were n't disclosed + <unk> corning makes clinical <unk> systems and related products for the <unk> industry + the announcement said the acquisition should be completed by december after a definitive agreement is completed and regulatory approval is received + ciba-geigy intends to develop the <unk> corning unit into a substantial business making the unit an <unk> part of ciba-geigy 's comprehensive disease management concept + the nbc network canceled its first new series of the fall tv season killing <unk> brooks 's <unk> hotel comedy the <unk> house + the show one of five new nbc series is the second casualty of the three networks so far this fall + last week cbs inc. canceled the people next door + nbc 's comedy had aired <unk> at N p.m. and in five <unk> had drawn an average of only N N of homes lagging behind the jamie lee <unk> comedy anything but love on abc and cbs 's one-hour drama <unk> and the <unk> + nbc a unit of general electric co. has n't decided on a permanent replacement for the canceled series + john <unk> ltd. said it plans a private placement of N million canadian dollars us$ N million in preferred shares to be completed around nov. N + proceeds will be used to reduce short-term debt at the beer and food concern said robert <unk> vice president finance + the preferred shares will carry a floating annual dividend equal to N N of the 30-day bankers ' acceptance rate until dec. N N + thereafter the rate will be <unk> + mr. <unk> said that if no agreement is reached other buyers will be sought by bid or auction + the shares are <unk> after the end of N + mr. <unk> said the share issue is part of a strategy to strengthen <unk> 's balance sheet in anticipation of acquisitions to be made during the next N to N months + <unk> 's has no takeover bids outstanding currently he said + lead underwriter to the issue is toronto dominion securities inc + texas instruments inc. once a pioneer in portable computer technology today will make a bid to <unk> itself in that business by <unk> three small personal computers + the announcements are scheduled to be made in temple texas and include a so-called notebook pc that <unk> less than seven pounds has a <unk> hard disk drive and is <unk> by intel corp. 's N microprocessor + that introduction comes only two weeks after compaq computer corp. <unk> it had a lead of three to six months on competitors introduced the first u.s. notebook computer with such features + despite the inevitable comparison with compaq however texas instruments ' new notebook wo n't be a direct competitor + while compaq sells its machines to businesses through computer retailers texas instruments will be selling most of its machines to the industrial market and to <unk> <unk> and <unk> manufacturers + the <unk> also mark texas instruments ' plunge back into a technology it has all but ignored for the past several years + although the dallas-based computer giant introduced the first portable data terminal in N a <unk> monster and the world 's first <unk> portable in N the only portable machines it has introduced since the first part of the decade have been <unk> terminals with limited <unk> processing ability + it stopped selling a standard personal computer a while ago + now that is about to change as texas instruments begins marketing two <unk> laptop pcs with N <unk> and N <unk> hard drives + the <unk> are not revolutionary and indeed are <unk> in a market first opened by grid systems corp. now a unit of tandy corp. almost two years ago + but the notebook with the more advanced microprocessor and hard disk is more innovative + weighing N pounds with battery the notebook measures N by N inches has a <unk> hard disk drive and boasts a <unk> screen that is N N larger than compaq 's + its <unk> according to industry consultants is better than compaq 's but its battery life of two to three hours is shorter + it does n't have an internal <unk> disk drive although a <unk> drive can be purchased separately + its greatest <unk> may be its <unk> <unk> big enough for one consultant to describe it as <unk> + list prices on the heavier texas instrument <unk> will be $ N for the <unk> model N with a N <unk> disk drive and $ N for the <unk> model N + the notebook the <unk> model N will be priced at $ N + shearson lehman hutton inc. said it applied to taiwanese securities officials for permission to open brokerage offices in taipei + shearson 's application is the first since the taiwan securities and exchange commission announced june N that it would allow foreign brokerage firms to do business in that country + taiwan officials are expected to review the shearson application later this year + under current rules investors in taiwan can buy overseas stocks only through the purchase of mutual funds issued by local and foreign investment trusts + the new rules will allow investors to buy foreign stocks directly + a spokesman for shearson said the brokerage service will be directed at individual investors who want to buy foreign and domestic stocks + it 's an attractive market with good growth opportunities he added + retailers in the west and parts of the south are entering the critical christmas shopping season with more momentum than those in other regions + in a new report the international council of shopping centers said sales of general merchandise in the west for the first seven months of N rose N N above year-earlier levels + sales increased a more modest N N in the south and N N in the midwest + but sales in the <unk> state of texas surged N N and sales in south carolina jumped N N in the period the new york trade group said + in the northeast however sales declined N N in the period with sales in new england falling N N + the numbers show that we do n't have a <unk> economy said <unk> <unk> council research director + there are a lot of have and <unk> markets + sales nationally rose N N through july the latest month for which the figures are available the council said + the northern california earthquake and hurricane hugo are likely to temporarily damp sales growth in the west and south carolina + but mr. <unk> predicted the regional trends would continue through christmas + the big <unk> is as much of a factor in retailing as in politics he said + the christmas quarter is important to retailers because it represents roughly a third of their sales and nearly half of their profits + the council 's report is based on data the trade group buys from the u.s. census bureau + the information on N metropolitan markets is supplied by retailers such as sears roebuck & co. and k mart corp. as well as closely held concerns such as r.h. macy & co + the council plans to release its regional reports monthly + mr. <unk> said strength in employment appears to have the biggest impact on sales growth + el paso austin and fort worth the three strongest retail markets in the nation are all located in texas where employment grew a relatively strong N N + massachusetts which has lost jobs in the computer and <unk> industries was the weakest link in bleak new england + the results reflect a reversal in the fortunes of the regions during the past two years + in N the west had the <unk> sales growth and the south and the midwest were first and second respectively according to the council + mr. <unk> said that although retailers probably wo n't ever recover sales lost because of the california quake and hurricane hugo they could see some benefits later on + stores such as sears that sell <unk> durable goods might actually get a boost as consumers rush to replace items lost in the disasters he said + <unk> corp. said it will spend $ N million to purchase land and <unk> its <unk> <unk> storage facility to clark county nev. from henderson <unk> + the company said it will move the storage and <unk> operations to a site N miles northeast of las vegas to distance the operations from residential areas + <unk> <unk> is an <unk> that is mixed with a <unk> to make rocket fuel used in the space shuttle and military <unk> + in may N an <unk> <unk> plant in henderson owned by an american pacific corp. unit was <unk> by a series of explosions + after the explosion <unk> temporarily shut down its facility just south of las vegas for a safety inspection + american pacific and <unk> are the only two u.s. manufacturers of <unk> <unk> + when the plant was destroyed i think everyone got concerned that the same thing would happen at our plant a <unk> spokeswoman said + that prompted <unk> to consider moving the potentially volatile storage facilities and <unk> operations away from town + <unk> said it has purchased N acres from the federal government in clark county and plans to begin construction early next year + the new facility is expected to begin operations in early N + the henderson plant will continue its other chemical operations the company said + this maker of electronic devices said it replaced all five incumbent directors at a special meeting called by milton b. hollander whose high technology holding co. of stamford conn. acquired most of its N N stake in newport in august + elected as directors were mr. hollander frederick <unk> frederick ross arthur b. <unk> and rose <unk> + removed from office were george <unk> robert e. davis norman gray john virtue corporate secretary and barrett b. weekes chairman president and chief executive officer + newport officials did n't respond friday to requests to discuss the changes at the company but earlier mr. weekes had said mr. hollander wanted to have his own team on the board + <unk> co. japan 's leading cosmetics producer said it had net income of N billion yen $ N million in its first half which ended sept. N + exact comparisons with the previous year were unavailable because of a change in the company 's fiscal calendar + the tokyo-based company had net of N billion yen in the previous reporting period which was the four months ended march N + sales in the first half came to N billion yen compared with N billion yen in the <unk> period + <unk> predicted that sales for the year ending next march N will be N billion yen compared with N billion yen in the year ended nov. N N + it said it expects net to rise to N billion yen from N billion yen + bruce w. <unk> president and chief executive officer was named to the additional post of chairman of this architectural and design services concern + mr. <unk> N years old succeeds thomas a. bullock N who is retiring as chairman but will continue as a director and chairman of the executive committee + merger and acquisition activity in the third quarter exceeded the year-earlier pace said merrill lynch & co. 's <unk> <unk> & co. unit in <unk> ill + a total of N transactions were announced during the latest quarter up N N from the year-earlier period 's N <unk> said + transactions in which prices were disclosed totaled $ N billion up N N from $ N billion a year earlier the company added + <unk> counted N transactions valued at $ N billion or more in the latest period twice as many as a year earlier + the largest was the $ N billion merger creating bristol-myers squibb co + in the first nine months N transactions were announced up N N from N in the year-earlier period + transactions in which prices were disclosed totaled $ N billion up N N from $ N billion a year earlier + citing current stock market conditions and the trend away from highly leveraged transactions <unk> said it was n't certain that the total value of transactions for the year will exceed the record $ N billion in N + medicine <unk> international inc. declared a <unk> stock split and substantially boosted the dividend payout + the <unk> of <unk> said the added shares will be distributed dec. N to stock of record nov. N + the company also changed its dividend policy under which holders had received an annual N <unk> payment by declaring a <unk> dividend to be paid quarterly on <unk> shares + nbi inc. said that it can not pay the oct. N dividend on its series a convertible preferred stock allowing the stock 's holder to convert the shares into as much as N N of nbi 's shares outstanding + nbi said that it has the funds to pay the dividend but that it does n't have the surplus or profit required under delaware law for payment of the dividend + all the preferred stock is held by the <unk> office supply stock ownership plan + under terms of the stock the <unk> <unk> can demand that the stock be redeemed for $ N on nov. N but nbi said it is legally prohibited from making the redemption + failure to pay the dividend allows <unk> to convert all or some of its shares into nbi common after nov. N at a conversion price based on nbi 's closing stock price + nbi a maker of <unk> systems said it ca n't predict if any of the preferred stock will be converted + nbi also said it has hired prudential-bache securities inc. as its financial adviser and investment banker to help it restructure financially and improve its balance sheet + insurers may see claims resulting from the san francisco earthquake totaling nearly $ N billion far less than the claims they face from hurricane hugo but the recent spate of catastrophes should jolt property insurance rates in coming months + the property claims service division of the american insurance services group estimated insured losses from the earthquake at $ N million + this estimate does n't include claims under workers ' compensation life health <unk> and liability insurance and damage to infrastructure such as bridges highways and public buildings + the estimated earthquake losses are low compared with the $ N billion in claims that insurers face from hurricane hugo which <unk> through the caribbean and the carolinas last month + that 's because only about N N of california homes and businesses had earthquake insurance to cover the losses + however insurance brokers and executives say that the combination of the bay area earthquake hugo and last week 's explosion at the phillips petroleum co. 's refinery in pasadena texas will cause property insurance and reinsurance rates to jump + other insurance rates such as casualty insurance which would cover liability claims are n't likely to firm right away says alice <unk> an industry analyst with <unk> research in avon conn + she believes the impact of losses from these catastrophes is n't likely to halt the growth of the industry 's surplus capital next year + property reinsurance rates are likely to climb first analysts and brokers believe + the reinsurance market has been <unk> by disasters in the u.s. as well as in great britain and europe says thomas <unk> director of research at <unk> lane inc. in atlanta + insurers typically retain a small percentage of the risks they underwrite and pass on the rest of the losses + insurers buy this insurance protection for themselves by giving up a portion of the premiums they collect on a policy to another firm a reinsurance company which in turn <unk> a portion of any losses resulting from this policy + insurers such as cigna corp. <unk> corp and aetna life & casualty co. buy reinsurance from other <unk> companies and lloyd 's of london for one catastrophe at a time + after hugo hit many insurers exhausted their reinsurance coverage and had to tap <unk> to replace that coverage in case there were any other major disasters before the end of the year + after the earthquake two weeks ago brokers say companies scrambled to replace reinsurance <unk> again and lloyd 's syndicates turned to the london market excess lines for protection of their own + james <unk> senior vice president of <unk> & <unk> inc. a new york-based reinsurance broker says insurers who took big losses this fall and had purchased little reinsurance in recent years will be asked to pay some pretty hefty rates if they want to buy reinsurance for N + however companies with few catastrophe losses this year and already big buyers of reinsurance are likely to see their rates remain flat or perhaps even decline slightly + many companies will be negotiating their N reinsurance contracts in the next few weeks + it 's a seller 's market said mr. <unk> of the reinsurance market right now + but some large insurers such as state farm mutual automobile insurance co. do n't purchase reinsurance but fund their own program + a few years ago state farm the nation 's largest home insurer stopped buying reinsurance because no one carrier could provide all the coverage that it needed and the company found it cheaper to <unk> + the $ N million of losses state farm expects from hugo and an additional $ N million from the earthquake are less than N N of state farm 's $ N billion total net worth + since few insurers have announced what amount of losses they expect to see from the earthquake it 's impossible to get a clear picture of the quake 's impact on fourth-quarter earnings said herbert <unk> at prudential-bache securities corp + <unk> expects an after-tax charge of less than $ N million against fourth-quarter net hartford insurance group a unit of itt corp. expects a $ N million or N cents after-tax charge and fireman 's fund corp. expects a charge of no more than $ N million before taxes and after using its reinsurance + sharp corp. tokyo said net income in its first half rose N N to N billion yen $ N million from N billion yen a year earlier + the consumer electronics home appliances and <unk> concern said revenue in the six months ended sept. N rose N N to N billion yen from N billion yen + sales of <unk> products and electric parts increased a strong N N to N billion yen from N billion yen and accounted for N N of total sales + in audio equipment sales rose N N to N billion yen from N billion yen + sales of electric appliances were flat and sales of electronic equipment declined slightly + sharp projected sales for the current year ending march N at N trillion yen a N N increase the previous fiscal year + it said it expects net to rise N N to N billion yen + sun microsystems inc. a computer maker announced the effectiveness of its registration statement for $ N million of N N N convertible subordinated debentures due oct. N N + the company said the debentures are being issued at an issue price of $ N for each $ N principal amount and are convertible at any time prior to maturity at a conversion price of $ N a share + the debentures are available through goldman sachs & co + nelson holdings international ltd. shareholders approved a <unk> consolidation of the company 's common stock at a special meeting + at the same time shareholders approved the adoption of a rights plan and a <unk> voting approval requirement + they also approved the relocation of the company 's registered office to toronto from vancouver and a name change to <unk> nelson holdings international ltd + following the consolidation the entertainment company which has film and television operations in beverly hills calif. will have about N million shares outstanding + the number of authorized common shares will remain at N million + under the rights plan holders will have one right for each common share held with each right <unk> the purchase of one common share for N canadian dollars + the rights plan would be triggered if a person or group acquires N N or more of the common shares outstanding without making an offer to all shareholders + under the <unk> amendment certain mergers and other transactions would require approval of holders of N N of the company 's common shares outstanding + wilfred american educational corp. said a federal grand jury in boston indicted the operator of <unk> and business schools for mail fraud + the charges in the <unk> indictment which stem from events that allegedly occurred in late N and early N involve <unk> procedures of six students and the preparation of certain reports wilfred said + no individuals were charged in the indictment + wilfred american said it will vigorously defend itself against the charges and added that the charges <unk> to procedures that it has since changed + eight <unk> representatives at two of wilfred 's former massachusetts schools previously pleaded guilty to charges of <unk> <unk> and counseling students to submit false <unk> applications + wilfred closed its massachusetts schools earlier this year + in new york stock exchange composite trading friday wilfred fell N cents to N cents a share + rally 's inc. said it filed suit in u.s. district court in delaware against a group led by burt sugarman seeking to block the investors from buying more shares + rally 's a louisville ky. fast-food chain alleges that the three investors who are directors of the company broke securities laws because they did n't disclose their intentions to acquire a big rally 's stake + the group led by giant group ltd. and its chairman mr. sugarman owns about N N of rally 's + in the securities and exchange commission filings the group has said it may seek control of rally 's + mr. sugarman called the lawsuit not nice and said his group will continue to push for control of the company and the removal of certain directors + he asserts that some directors who have joined forces with company founder james patterson have ties to wendy 's a competing <unk> chain + the patterson group which controls about N N of rally 's shares also may seek control + rally 's also said it formed a committee of three directors who are n't associated with either the patterson or sugarman groups to analyze the situation + leaseway transportation corp. said it will restructure $ N million of certain subordinated debentures to reduce its debt obligations and interest expense + the N N subordinated debentures due N were issued in august N as part of the $ N million financing for a leveraged buy-out of the company + leaseway provides transportation services for manufacturers distributors and retailers + leaseway said it has begun discussions with certain institutional debt holders to review the proposed private placement transaction which would exchange the debt for new subordinated debt instruments and equity securities + specific terms are subject to review and a final agreement with debt holders the company said + but the proposed transaction calls for an exchange of the debt for new debentures of lower face value and reduced cash interest + also debt holders would be offered an equity position in leaseway which in total would represent a controlling interest in the company + drexel burnham lambert inc. is the adviser on the transaction + company officials said leaseway <unk> payment requirements of its debt obligations since the leveraged buy-out but our performance since the buy-out makes it <unk> to implement actions that will further improve our cash flow + nicaraguan president daniel ortega may have accomplished over the weekend what his u.s. <unk> have failed to do revive a constituency for the contra rebels + lawmakers have n't publicly raised the possibility of renewing military aid to the contras and president bush <unk> the question at a news conference here saturday saying only that if there 's an <unk> military offensive that 's going to change the equation N degrees + but mr. ortega 's threat over the weekend to end a <unk> cease-fire with the rebels seeking to topple him effectively <unk> the contras as a policy priority just as they were slipping from the <unk> of their most <unk> supporters + senate majority leader george mitchell d. maine said yesterday on <unk> 's meet the press that mr. ortega 's threat was a very <unk> move particularly the timing of it + the threat came during a two-day celebration in costa rica to highlight central america 's progress toward democracy in the region attended by president bush canadian prime minister brian <unk> and N other western <unk> leaders + mr. bush returned to washington saturday night + mr. ortega announced on friday that he would end the cease-fire this week in response to the periodic contra <unk> against his army + saturday he amended his remarks to say that he would continue to <unk> by the cease-fire if the u.s. ends its financial support for the contras + he asked that the remaining u.s. humanitarian aid be diverted to <unk> and <unk> the rebels + not only did mr. ortega 's comments come in the midst of what was intended as a <unk> for the region it came as nicaragua is under special international scrutiny in anticipation of its planned february elections + outside observers are gathering in nicaragua to monitor the registration and treatment of opposition candidates + and important u.s. lawmakers must decide at the end of november if the contras are to receive the rest of the $ N million in so-called humanitarian assistance under a bipartisan agreement reached with the bush administration in march + the humanitarian assistance which pays for supplies such as food and clothing for the rebels <unk> along the nicaraguan border with honduras replaced the military aid cut off by congress in february N + while few lawmakers anticipated that the humanitarian aid would be cut off next month mr. ortega 's threat practically guarantees that the humanitarian aid will be continued + senate minority leader robert dole r. <unk> said yesterday on meet the press i would hope after his mr. ortega 's act yesterday or the day before we 'd have <unk> support for quick action on remaining humanitarian aid + sen. dole also said he hoped for <unk> support for a resolution he plans to offer tomorrow <unk> the nicaraguan leader + while renewing military aid had been considered out of the question rejected by congress and <unk> by the bush administration mr. ortega 's statement provides contra supporters with the opportunity to press the administration on the issue + the administration should now state that if the february election is <unk> by the sandinistas they should call for military aid said former assistant secretary of state elliott abrams + in these circumstances i think they 'd win + sen. mitchell said that congressional democrats intend to honor the march agreement to give <unk> support to the contras through the february elections although he added that the agreement requires that the contras not <unk> any military action + mr. ortega 's threat to breach the cease-fire comes as u.s. officials were acknowledging that the contras have at times violated it themselves + secretary of state james baker who accompanied president bush to costa rica told reporters friday i have no reason to deny reports that some contras <unk> some sandinista soldiers + mr. baker 's assistant for <unk> affairs bernard <unk> while maintaining that the sandinistas had also broken the cease-fire acknowledged it 's never very clear who starts what + he added that the u.s. has cut off aid to some rebel units when it was determined that those units broke the cease-fire + in addition to <unk> arguments in favor of ending contra aid mr. ortega 's remarks also played to the <unk> of some u.s. officials and conservatives outside the government that he is searching for ways to manipulate or <unk> the february elections + administration officials traveling with president bush in costa rica interpreted mr. ortega 's <unk> as a sign that he is n't responding to the military attacks so much as he is searching for ways to strengthen his hand prior to the elections + mr. abrams said that mr. ortega is seeking to <unk> the contras prior to the elections to remove any pressure to hold fair elections + my sense is what they have in mind is an excuse for <unk> down on <unk> by creating an atmosphere of a military emergency he said + milton petrie chairman of petrie stores corp. said he has agreed to sell his N N stake in deb shops corp. to petrie stores + in a securities and exchange commission filing mr. petrie said that on oct. N petrie stores agreed to purchase mr. petrie 's N deb shops shares + the transaction will take place tomorrow + the filing said petrie stores of <unk> n.j. is purchasing mr. petrie 's deb shops stake as an investment + although petrie stores has considered seeking to acquire the remaining equity of deb stores it has no current intention to pursue such a possibility the filing said + <unk> deb shops said it saw little significance in mr. petrie selling his stock to petrie stores + we did n't look at it and say oh my god something is going to happen said stanley <unk> vice president and corporate counsel + mr. <unk> said that mr. petrie or his company have been <unk> deb shops stock for several years each time issuing a similar regulatory statement + he said no discussions currently are taking place between the two companies + <unk> corp. said unconsolidated pretax profit increased N N to N billion yen $ N million in the first half ended sept. N from N billion yen a year ago + the tokyo camera maker said net income more than doubled to N billion yen or N a share from N billion yen or N yen a share + <unk> said sales rose despite the adverse effect of japan 's unpopular consumption tax introduced in april + increasing personal spending and capital investment are fueling growth the company said + rising export sales also contributed to strong growth <unk> added + total sales gained N N to N billion yen from N billion yen + exports made up N N of the latest year 's total up from N N a year ago + camera sales showed the strongest gains rising N N to N billion yen + <unk> forecast sales for the year ending march N will rise N N to N billion yen + pretax profit is expected to increase N N to N billion yen and net income is expected to rise N N to N billion yen + <unk> oil co. said it signed a definitive agreement to acquire gulf canada resources ltd. 's u.s. unit for $ N million + <unk> a denver oil and gas concern said it will acquire the properties and operations of home petroleum corp. which includes two regional <unk> systems and proved reserves of about nine million barrels of oil and N billion cubic feet of natural gas + <unk> said the properties are generally <unk> in wyoming north <unk> texas oklahoma and louisiana + gulf canada calgary said the transaction is part of its plan to sell <unk> assets and focus operations on canada indonesia and other international areas + a spokesman for gulf canada which is controlled by toronto 's <unk> family said the properties account for about N N of the company 's assets and produce about N barrels of oil and N million cubic feet of gas a day + he said gulf canada will likely report an extraordinary gain from the sale in the fourth quarter but he would n't offer a specific estimate + the transaction is expected to close by nov. N + nec corp. a tokyo-based computer and electronics concern said net income rose N N to N billion yen $ N million in the fiscal first half ended sept. N from N billion yen a year earlier + sales rose N N to N trillion yen from N trillion yen + nec said first-half computer sales totaled N billion yen up N N from N billion yen a year earlier + sales of electrical devices rose N N to N billion yen from N billion yen + it said sales of home electronic products advanced N N to N billion yen from N billion yen + in the period just ended computers accounted for N N of total sales nec said and electrical devices made up N N + nec forecast sales for the year ending next march N of N trillion yen an increase of N N from the previous fiscal year + it said net income will rise N N to N billion yen + montedison <unk> definitively agreed to buy all of the publicly held shares of erbamont n.v. for $ N each + montedison now owns about N N of erbamont 's shares outstanding + the companies said the accord was unanimously approved by a special committee of erbamont directors <unk> with montedison + under the pact <unk> will make a $ <unk> tender offer for erbamont stock outstanding + the tender offer will be followed by the sale of all of erbamont 's assets subject to all of its liabilities to montedison + erbamont will then be liquidated with any remaining erbamont holders receiving a distribution of $ N a share + the companies said the transaction is being structured this way because the laws of the netherlands <unk> under which erbamont is organized do n't provide for merger transactions + a unit of dpc acquisition partners launched a $ <unk> tender offer for the shares outstanding of dataproducts corp. and said it would seek to liquidate the <unk> maker as soon as possible even if a merger is n't <unk> + dpc acquisition is controlled by <unk> investment associates wilson investment group <unk> corp. and catalyst partners + the investor group owns N dataproducts common shares or a N N stake + the offer is based on several conditions including obtaining financing + dpc acquisition said it had received the reasonable assurance of chase manhattan bank <unk> that the financing can be obtained + in a filing with the securities and exchange commission dpc acquisition said it expects it will need about $ N million to buy the shares and pay related fees and expenses + dpc acquisition added that it has not begun discussions with financing sources and said it expected to repay the amounts borrowed through proceeds of the liquidation + dataproducts officials declined to comment and said they had not yet seen a suit filed in federal court by dpc acquisition that seeks to <unk> a standstill agreement between dpc acquisition and dataproducts + earlier this year dpc acquisition made a $ <unk> offer for dataproducts which the dataproducts board said it rejected because the $ N million offer was not fully financed + dataproducts has since started a restructuring and has said it is not for sale + jayark corp. agreed to pay $ N million in cash $ N million of N N convertible debentures and N million common shares to acquire closely held <unk> imports inc + in over-the-counter trading friday jayark was quoted at N cents bid down N cents + at the market price the transaction has a total indicated value of $ N million + <unk> is a new york holding company for <unk> inc. which imports furniture and other items + david l. <unk> president and chief executive officer of jayark holds about N N of <unk> jayark said + jayark new york distributes and <unk> <unk> equipment and prints promotional ads for retailers + in the quarter ended july N jayark had an average of N million shares outstanding + the transaction is subject to approval by a panel of <unk> directors the company said adding that shareholder approval is n't needed + <unk> co. a tokyo-based <unk> concern said net income in its first half rose N N to N billion yen $ N million from N billion yen a year earlier + sales in the six months ended sept. N were up N N to N billion yen from N billion yen + sales were higher in all of the company 's business categories with the biggest growth coming in sales of <unk> such as <unk> coffee and frozen food which rose N N + oils and <unk> also did well posting a N N sales increase + sales in the category that includes pharmaceuticals <unk> <unk> and chemicals rose N N + <unk> predicted sales in the current fiscal year ending next march N of N billion yen compared with N billion yen in fiscal N + it said it expects full-year net of N billion yen compared with N billion yen in the latest year + the new york mercantile exchange the world 's chief oil futures marketplace is at a critical <unk> + several longtime observers of the commodities industry think the fortunes of the merc over the next decade will be determined to a large extent by how well its new natural gas futures contract does and how successful its new president is in raising the level of compliance by floor traders with exchange and commodity futures trading commission rules + if the exchange <unk> in these moves they say it might once again fall behind its chief new york competitor the commodity exchange + on friday the merc 's board announced that it had approved <unk> pipe line co. 's henry hub in <unk> <unk> as the delivery site for its long-awaited natural gas futures contract + it also said that it would start trading the contract as soon as the cftc approved it + the cftc has N days to respond to such applications + the merc first started working on developing this contract in N + only three weeks earlier the merc had turned to one of its own executives 40-year-old r. patrick thompson to replace <unk> t. <unk> as president + mr. thompson is believed to have a mandate from the board of directors to help improve the merc 's <unk> reputation as an exchange whose floor traders do n't follow the rules very well + ms. <unk> had been forced out in july in a bitter power struggle with <unk> <unk> <unk> chairman and a longtime floor trader on the exchange + mr. <unk> told one person familiar with the new york exchanges during the search for a replacement that he was looking for a president who would be responsive to the needs of the membership and the board + mr. thompson first came to the exchange in N and has been executive vice president since march N + he previously held posts of senior vice president of compliance and senior vice president and general counsel + by contrast the comex in july imported a highly regarded outsider arnold f. <unk> as its president + mr. <unk> N was a senior officer of the philadelphia stock exchange and is considered a specialist in new financial products + mr. thompson is n't <unk> of experience with new products however + for the past two years he said he and the exchange 's research department have been working on the new natural gas contract seeking a good delivery site and studying the natural gas market + our members are eager to begin trading this contract so we expect no difficulty in attracting <unk> to the natural gas pit he said + the educational effort of teaching companies in the natural gas industry how to use the futures to hedge would have to continue for another a year or two he added + the merc 's extremely successful contracts in crude oil gasoline and heating oil have made it the largest futures exchange in new york and third behind the chicago board of trade and chicago mercantile exchange + in a recent interview mr. thompson said the biggest problem facing all commodity exchanges was one of image + earlier this year the u.s. attorney indicted N floor traders and one clerk at the two big chicago exchanges + federal authorities in new york started investigating exchanges in may though no <unk> have been handed down there + so far they have issued scores of <unk> some of which went to members of the new york merc + mr. thompson will have to face some of the consequences of those <unk> + in a recent general accounting office study the merc was found to have been the most <unk> in <unk> exchange rules + it <unk> the smallest number of <unk> of traders and fines of the four largest commodity exchanges studied over the past five years + it also had both the <unk> and least experienced investigators per million contracts traded + the merc received considerable criticism in N when it was discovered that its compliance director kevin p. conway who then was responsible for <unk> the exchange 's busy oil and metal pits was engaged in other personal business activities on exchange time including <unk> trips according to a new york merc report prepared last year + mr. conway is no longer at the exchange + we had a management breakdown in N in terms of compliance mr. thompson says + we recognized the problem and took care of it + he says that even if the natural gas contract boosts volume at the exchange strongly the N business plan calls for having adequate compliance people to ensure that exchange rules are being followed + for years the five new york exchanges have been talking about <unk> in various aspects of their business in order to improve the efficiency of their operations + <unk> there has even been talk of mergers between one or more exchanges + so far there is little to show for such efforts + mr. thompson believes the case for working together is stronger now than ever + the cost of competition has become extremely high he says + we must find ways to save money for the futures commission merchants who do business on our exchanges + he thinks that progress in cooperation can be made in areas where no vested interests have built up + one of those areas is the development of a hand-held electronic device that would permit floor traders to enter trades as they make them + the <unk> has recommended the creation of a system to record trade data so that an independent <unk> audit trail can be established to prevent customer fraud + the merc is now <unk> with the comex in developing such a device to provide such an audit trail + the chicago exchanges also are working on such a device + another major electronics problem faces mr. thompson the creation of a 24-hour trading system that can be used outside normal trading hours + in january the new york merc signed a letter of intent with the chicago merc as a preliminary step to joining their electronic system called <unk> + but in may the chicago merc said it was looking into creating a common system with the chicago board of trade and it suspended negotiations with the new york merc + mr. thompson says his exchange is n't waiting for the results of the chicago exchanges ' cooperation + it recently began a pilot program to test an electronic trading system called <unk> the automated trading system created by the international commodities clearing house + looking ahead to commodity markets this week + copper + michael <unk> metals trader for painewebber inc. in new york said there is good technical support between $ N and $ N a pound for december copper which ended friday at $ N a pound up N cents + he views the $ N to $ N range as a buying opportunity and considers the market <unk> + i think the market could pop up to the $ N to $ N level without too much difficulty he said + but he said it wo n't climb further and he expects it to remain in a trading range between $ N and $ N + he noted that the equity markets will set the tone for the industrial metals this week and traders should keep an eye on wall street + william <unk> research director for elders futures inc. in new york said for a rally to occur there must be demand from the far east + he added that talk of strike settlements at producing mines has been fully discounted + however to resume the bull trend according to mr. <unk> copper would have to close over $ N + he said there are two reports this week that might affect prices the purchasing managers report on wednesday and the unemployment report on friday + precious metals + friday 's strong price gains confirmed a turnaround in the precious metals markets according to painewebber 's mr. <unk> + most traders will be looking to buy on <unk> he said + he thought the moves in the metals last week were most influenced by the uncertainty in the equity and other financial markets + according to mr. <unk> floor traders say there is good support for december gold in the $ N to $ N per ounce area around $ N an ounce for december silver and in the $ N to $ N an ounce range for january platinum + william <unk> research director for elders futures inc. in new york said the price action for all of last week is the best he has seen on a weekly basis in more than a year + he said last week 's activity in gold could <unk> a move to $ N an ounce for the december contract + he also said traders should keep an eye on the stock market because if the stock market rallies that could <unk> trouble for the precious metals + he said traders should be on the <unk> for how metals producers react to this rally + i expect to see some selling but will they kill this one as they have every rally in the recent past by selling and <unk> in prices for their production + he noted that for the first time in months there was some light investor interest in the metals + grains and soybeans + prices this week will likely be dominated by reports on the progress of the corn and soybean harvest as well as by speculation about more purchases of u.s. crops by the soviet union + in recent weeks warm and dry weather has <unk> the midwest harvest and that is permitting farmers to rebuild the <unk> that were cut by the N drought + if the weather allowed farmers to work in their fields over the weekend many midwest grain elevators will probably sell futures contracts today at the chicago board of trade in order to hedge their weekend purchases from farmers + that selling of futures contracts by elevators is what helps keep downward pressure on crop prices during the harvest + traders will also watch for whether the soviet union continues its traditional fall buying of u.s. grain + so far this month the soviets have bought about N million metric tons of u.s. corn + there may be some activity in soybean prices this week as investors try to get rid of the contract for november delivery + investors usually do n't want to take physical delivery of a contract <unk> instead to profit from its price swings and then end any obligation to take delivery or make delivery as it <unk> expiration + employees of the globe and mail a thomson corp. newspaper in toronto voted to accept a tentative contract agreement saturday <unk> a strike at canada 's leading daily + under the terms of the three-year contract similar to one reached at <unk> corp. 's toronto star newspaper earlier this month the N globe and mail workers will see a raise of N N in the contract 's first year and N N in each of the following two years + <unk> <unk> vice chairman of the southern ontario newspaper guild the union representing the workers said thomson made significant concessions in the final round of talks + in addition to wage increases the union negotiated improved vacation plans benefit packages and pension plans mr. <unk> said + he said more than N N of the bargaining unit voted in favor of the agreement + wall street is just about ready to line the <unk> <unk> with paper stocks + for three years a healthy economy and the <unk> effects of a weak dollar propelled sales and earnings of the big paper companies to record levels + as the good times rolled they more than doubled their prices for pulp a raw material used in all sorts of paper to $ N a metric ton this past spring from $ N a ton at the start of N + but now the companies are getting into trouble because they <unk> a record expansion program while they were raising prices sharply + third-quarter profits fell at several companies + put your money in a good utility or bank stock not a paper company advises george <unk> of smith barney + other analysts are nearly as pessimistic + gary <unk> of oppenheimer & co. expects a N N decline in earnings between now and N for <unk> paper companies which account for the majority of the industry + robert <unk> of duff & phelps sees <unk> stock prices falling N N to N N in N perhaps N N if there 's a recession + paper companies concede that business has been off recently + but they attribute much of the weakness to customer inventory reductions + generally they maintain that barring a recession and a further strengthening of the dollar against foreign currencies the industry is n't headed for a prolonged slump + it wo n't be an <unk> drop a weyerhaeuser spokesman says + last week mr. <unk> lowered his rating from hold to avoid on <unk> cascade champion international great northern nekoosa international paper louisiana pacific and weyerhaeuser + oppenheimer 's mr. <unk> meanwhile is steering clear of <unk> container stone container and federal paper board + mr. <unk> is cool to georgia pacific and <unk> + lawrence ross of painewebber would avoid union camp + the companies in question believe the analysts are too pessimistic + great northern nekoosa said the odds of the dire predictions about us being right are small + international paper <unk> that it is better positioned than most companies for the coming overcapacity because its individual mills can make more than one grade of paper + a <unk> spokesman referred to a speech by chairman john <unk> in which he said that markets generally are stable although some risk of further price deterioration exists + stone container chairman roger stone said that unlike for some other paper products demand for stone 's principal commodity <unk> <unk> remains strong + he expects the price for that product to rise even more next year + <unk> container said analysts are skeptical of it because it 's carrying a lot of debt + champion international said we 've gotten our costs down and we 're better positioned for any cyclical downturn than we 've ever been + louisiana pacific and georgia pacific said a number of other analysts are recommending them because of their strong <unk> business + federal paper board said we 're not as exposed as the popular perception of us + the company explained that its main product <unk> <unk> which goes into some advertising materials and white boxes historically does n't have sharp price swings + because the stock prices of some paper companies already reflect an expected profit slump painewebber 's mr. ross says he thinks that next year the share prices of some companies may fall at most only N N to N N + a company such as federal paper board may be overly discounted and looks <unk> to him he says though he is n't yet recommending the shares + wall street is n't avoiding everything connected with paper + mr. <unk> recommends <unk> explaining that it is virtually the sole major paper company not <unk> a major capacity expansion and thus should be able to lower long-term debt substantially next year + a <unk> spokesman said the company expects record earnings in N and we 're still pretty bullish on N + the analysts say their gloomy forecasts have a <unk> side + some take a warm view of <unk> paper companies which buy pulp from the commodity producers and should benefit from the expected declines in pulp prices + estimates on how much pulp prices will fall next year currently run between $ N and $ N a metric ton + analysts agree that the price drop should especially benefit the two big tissue makers scott paper and <unk> + a spokesman for scott says that assuming the price of pulp continues to soften we should do well + <unk> 's inc. said it will report a write-off of $ N million or seven cents a share for its fourth quarter ended yesterday + the restaurant operator cited transaction costs from its N recapitalization as a result of a $ N million restructuring of its bank debt + the write-off will be reported as an extraordinary item in the company 's N operating results + in addition the effective interest rate on the $ N million of total remaining bank debt after the restructuring is N N + the combined effect of these changes is expected to save the company about $ N million in interest expenses next year or six cents a share + <unk> 's said the latest restructuring affected bank <unk> that was incurred to finance $ N million of the company 's $ N million recapitalization that took place in + the company has made payments of $ N million against the original $ N million of bank debt incurred in connection with the recapitalization + these payments <unk> of $ N million in scheduled payments and $ N million in prepayments funded by $ N million from operating cash flow zero-coupon subordinated debt and assets sales + <unk> asea brown boveri <unk> said it signed a contract for the <unk> power plant order in the netherlands + <unk> said the contract signed with the dutch utility n.v <unk> <unk> is valued in excess of $ N million + the accord is for a <unk> plant at the <unk> power station <unk> in amsterdam + <unk> asea brown boveri is the dutch unit of the <unk> electrical engineering group <unk> asea brown boveri ag + <unk> said a significant portion of the order will be placed with dutch <unk> adding that a group has been set up for this purpose + the dutch utility firm serves the amsterdam and <unk> areas + the planned <unk> plant is expected to go into operation in N + nissan motor co. expects net income to reach N billion yen u.s. $ N million in its current fiscal year up from N billion yen in the previous year <unk> kume president said + mr. kume made the earnings projection for fiscal N ending next march N in an interview with u.s. automotive writers attending the tokyo motor show + the executive said that the anticipated earnings increase is fairly modest because nissan is spending heavily to bolster its dealership network in japan and because of <unk> fluctuations + during the next decade mr. kume said nissan plans to boost overseas vehicle production sufficiently to account for a majority of sales outside japan + last year mr. kume said nissan exported slightly over one million vehicles and produced N cars and trucks at its factories in north america europe and australia + but by N he added nissan will build one million vehicles a year outside japan or sufficient to equal exports + by the end of the 1990s he said we want to be producing roughly two vehicles overseas for every vehicle that we export from japan + that will involve a substantial increase in overseas manufacturing capacity he acknowledged but did n't provide specific details + national intergroup inc. said it expects to report a charge of $ N million related to the sale of its aluminum unit 's <unk> division for the third quarter + the company said it has agreed to sell the <unk> division for $ N million to <unk> werner co. a closely held firm based in greenville pa + the charge is offset by an after-tax gain of about $ N million in the quarter from the previously announced pact to sell national aluminum 's rolling division + national intergroup in the year-ago third quarter earned $ N million or N cents a share including a gain of $ N million from the sale of a steel tube company + revenue was $ N million + the company also said it continues to explore all options concerning the possible sale of national aluminum 's N N stake in an aluminum <unk> in <unk> <unk> + the sale of the <unk> division is subject to audit adjustments for working capital changes through the closing + the agreement also provides for potential payments of additional proceeds to national aluminum over the next two years depending on the plant 's shipping levels + the <unk> unit produces <unk> and painted custom <unk> for building products and construction industries + in fiscal N it had sales of about $ N million and an operating loss of $ N million + the municipal bond market is bracing for tough times through the end of the year as it struggles to absorb an <unk> of bonds and two of its best customers turn into sellers + commercial banks and property\/casualty insurers which together own about N N of all municipal bonds have been <unk> their securities for weeks + last week traders said there were three institutional sellers for every buyer + every day we 're getting new bid lists from would-be sellers one trader said + most dealers can not continue to absorb this supply + as a result yields on long-term <unk> bonds now stand at about N N of long-term treasury yields the highest such level in more than two years + there is incredible negative psychology building in the market said <unk> <unk> a vice president at merrill lynch & co + people are very concerned about who is going to step up to the plate and buy municipal bonds in the absence of institutional buyers + the yield on a group of N revenue bonds compiled by the bond buyer a trade publication now exceeds N N + at this week 's new york city bond sale traders expect yields on the 20-year new york bonds to nearly match the N N yield on 30-year treasury bonds + for an investor in the N N federal tax <unk> N N tax-free is the same as N N on a taxable investment + that 's a <unk> yield nearly three percentage points more than the current yield on 30-year treasury bonds + how quickly things change + this past summer investors ' appetite for municipal bonds seemed <unk> + individuals eager for tax-free income drove up bond prices making state and local government debt one of the <unk> types of fixed-income investments during the period + but while analysts say that municipal bonds still offer good value you would n't know it by the way institutional investors are rushing to dump their holdings + bond market analysts say the institutional selling was triggered by several factors + big banks such as chemical bank and chase manhattan which have been taking heavy charges to expand their third world loan-loss reserves are n't looking for tax-exempt income + we do n't need the shelter of tax-free bonds said a spokeswoman at chemical + in recent weeks traders said chemical has sold more than $ N billion of tax-free bonds + the spokeswoman confirmed that the bank has significantly reduced its <unk> holdings but could n't immediately confirm the amount + insurance companies are rushing to sell before the end of the year when some of their tax benefits associated with municipal bonds will be phased out + there is speculation that property\/casualty firms will sell even more <unk> as they scramble to raise cash to pay claims related to hurricane hugo and the northern california earthquake + fundamental factors are at work as well + <unk> bond holders are worried about the impact of a slowing economy on tax revenue at a time when many state and local governments already face budget deficits and huge spending needs + the recent natural disasters and the need of many other cities to rebuild crumbling infrastructure suggests that supply of new issues will continue to rise sharply even as demand <unk> off + there is just so much going on that it 's difficult to pick just one factor that 's driving the market said ronald ian heller vice president at first chicago capital markets inc. a subsidiary of first chicago corp + some of the recent selling could actually be considered a positive sign + mutual funds for example are said to be selling existing municipal bonds to raise cash to buy new issues + because municipal bonds yields have risen at a time when interest rates generally have fallen some portfolio managers are assuming that bonds bought now will appreciate in value as the municipal bond market <unk> + ms. <unk> believes that the mutual funds are selling <unk> bonds that have a negative <unk> those that have <unk> in price slowly relative to the decline in interest rates + such bonds she says are those that are <unk> their call date + but traders said the market 's tone could pick up this week if new york city 's $ N million bond offering goes well + the offering will include $ N million of 20-year tax-exempt bonds and $ N million of taxable bonds + a few weeks ago new york sold $ N million of <unk> + new york city bonds have been beaten down for three straight weeks + on friday some issues fell nearly one point or close to $ N for each $ N face amount + the sell-off in new york city bonds was triggered by concerns about the city 's financial health and political uncertainty in view of the impending mayoral election + the city 's economy is growing weaker and expenditures are rising as tax revenue is falling + the city has issued so much supply recently that some people are getting a little concerned + they 'd like to see some other names in their portfolios said michael s. <unk> first vice president at shearson lehman hutton + but he thinks investors may be <unk> to the market 's problems + overall he says municipal prices are very cheap and represent an excellent buying opportunity + friday 's market activity + treasury bonds fell sharply on confusion about this week 's treasury debt auction and rumors that a major japanese investor was unloading large amounts of long-term bonds + the treasury 's benchmark 30-year bond ended at a price of N N down nearly N point from thursday or about $ N for each $ N face amount + the issue 's yield rose to N N from N N + late thursday the treasury said it needed to raise $ N billion quickly and would do so by issuing new securities this week + credit market analysts expected the treasury to cancel today 's three-month and six-month sale and to sell $ N billion of cash management bills + instead the treasury announced it would sell $ N billion of <unk> cash management bills today and said that the weekly sale of $ N billion of three-month and six-month bills will take place today as usual but the sale will settle tomorrow instead of thursday + by moving the settlement date ahead the treasury can raise money under the $ N trillion debt ceiling that is in effect through tomorrow after which it <unk> to $ N trillion + the market also was hurt by rumors that nippon kangyo <unk> a japanese brokerage firm was unloading some of the 30-year bonds it recently purchased + one dealer said the talk was that the firm sold about $ N million of bellwether 30-year bonds + the firm is thought to have purchased up to $ N billion of 30-year bonds in a buying spree on wednesday and the previous thursday + dealers say the firm apparently has wanted to <unk> its recent buying and subsequent selling of 30-year bonds by using <unk> <unk> securities corp. as a broker + <unk> provides price quotes to telerate systems inc. a widely used electronic system + nippon kangyo 's moves <unk> traders and created confusion among potential investors many of whom decided to stay out of the market + as a result of its large-scale buying some analysts now say that liquidity or the ability to easily buy and sell has been <unk> in the benchmark treasury bond issue + in other markets + the junk bonds of rjr nabisco inc. rallied friday on news that the company is selling its candy bar brands to nestle foods corp. for $ N million + the sale price which was above wall street expectations sent many rjr securities up by one point + it shows that there are buyers of high-quality assets at high prices in today 's market said robert long managing director and head of the high-yield research department at first boston corp + many of the rjr securities which had been trading near their 52-week lows earlier in the session bounced back after the company 's announcement that it agreed to sell its baby ruth <unk> and <unk> candy businesses to nestle foods a unit of the <unk> food concern + the sale expected to close before the end of the year also includes a manufacturing plant in franklin park ill + rjr 's subordinated discount debentures of N which traded as low as N friday finished the day at N N + other rjr securities also closed higher + rjr holdings capital corp. 's N N convertible <unk> securities maturing in N closed N higher at N N after trading as low as N N + most other junk bond issues finished a <unk> lower on rumors that campeau corp. was filing for protection from creditors under chapter N of the bankruptcy code + a spokesman for campeau called the rumors ridiculous + most investment-grade bonds fell N to N point + mortgage securities fell N to N but held up better than intermediate treasurys + dealers said some defensive investors were buyers of mortgages as were dealers seeking collateral for remics priced earlier last week + among major issues government national mortgage association N N securities for november delivery ended at N N down N point for a yield of about N N to a 12-year average life assumption + the premium the elderly pay for coverage of doctor 's bills under part b of the medicare health insurance plan will rise to $ N a month in N from $ N the department of health and human services said + in addition a second part b premium to cover the cost of the new program of insurance against catastrophic illness will rise to $ N a month from $ N if congress does n't change the program + the house has voted to repeal most of the catastrophic coverage act of N however which would end the monthly <unk> premium as well as an unpopular income <unk> paid by about N N of the <unk> medicare beneficiaries + under a <unk> senate plan the <unk> monthly premium would continue rising to $ N next year but the <unk> would be abolished + medicare part b pays N N of a <unk> 's <unk> doctor 's bills after an annual deductible of $ N + the catastrophic coverage act would add a stop-loss provision next year to limit the maximum beneficiaries must pay for doctors + both the house and senate bills to reduce the cost and coverage of the <unk> plan would eliminate the cap on doctor 's bills + if the house <unk> in its efforts to kill the <unk> plan the monthly part b premium will be $ N next year + if the senate plan <unk> the premium will be $ N with the additional $ N going to pay for expanded hospital coverage under part a of medicare + most of part a 's costs are paid by a payroll tax on workers and employers + lockheed corp. said it will trim its <unk> systems work force in california and georgia by several hundred workers reflecting the defense industry 's decline + the lockheed unit has N workers it expects to make the cuts through a combination of <unk> <unk> and <unk> + the reductions should be complete by the end of the year a spokesman said adding that the exact number to be cut has n't been determined + lockheed reported a $ N million third-quarter net loss largely because of cost overruns on fixed-price military contracts + noting that other defense contractors are complaining of losses on such contracts analysts say taxpayers have been getting <unk> bargains on weapons systems in recent years + defense contractors can not continue to get contracts on that basis said howard <unk> an analyst with <unk> lawrence morgan grenfell inc. in new york + the pain is too great + jim <unk> industries ltd. one of a group of closely held companies owned by entrepreneur james <unk> said it intends to seek control of <unk> innopac inc. a toronto packaging concern + jim <unk> industries a holding company with annual sales of about c$ N billion largely from car dealerships and grocery stores did n't elaborate on the statement and a company official declined further comment + the company said it currently holds about N million of innopac 's N million common shares outstanding which have an <unk> market value of about N million canadian dollars us$ N million + separately innopac reported a fourth-quarter loss of about c$ N million or N canadian cents a share reflecting inventory write-downs + the results made net income for the year ended aug. N c$ N million or N canadian cents a share down from c$ N million or N canadian cents a share last year + revenue was c$ N million up from c$ N million in N + martin <unk> innopac 's president and chief executive said innopac viewed mr. <unk> 's decision to seek control as a very positive move + i 'm happy that he feels <unk> about our company he said + mr. <unk> would n't say directly whether mr. <unk> has disclosed potential terms for his planned bid for control + among other things innopac is involved in recycling <unk> foam products that are often used by fast food chains such as mcdonald 's corp. for food packaging + a joint venture involving units of innopac and mobil corp. earlier this year opened the first u.s. <unk> recycling plant in <unk> mass + program trading is being <unk> by more securities firms but big institutional investors are expected to continue the practice further <unk> the stock market + <unk> to criticism bear stearns morgan stanley and oppenheimer joined painewebber in <unk> stock-index arbitrage trading for their own accounts + still stock-index funds are expected to continue launching big programs through the market + several big board firms are organizing to complain about program trading and the exchange 's role in it + the effort is being led by contel + personal spending rose N N in september the smallest gain in a year + the slowdown raises questions about the economy 's strength because spending fueled much of the third-quarter gnp growth + meanwhile personal income edged up N N + factory owners are buying new machinery at a healthy rate this fall <unk> makers say + but weak car sales raise questions about future demand from the auto sector + southern 's gulf power unit may plead guilty this week to charges it illegally <unk> company money to politicians through third parties + the tentative pact would resolve part of a broad investigation of the atlanta-based company in the past year + lin broadcasting and bellsouth sweetened their plan to merge cellular phone operations offering lin holders a special $ <unk> payout + but the new pact will force huge debt on the new firm and could still fail to thwart rival suitor mccaw cellular + unisys posted a $ N million loss for the third quarter as it moved quickly to take write-offs for various problems and prepare for a turnaround + but some analysts wonder how strong the recovery will be + rjr nabisco agreed to sell three candy businesses to nestle for $ N million + the accord helps rjr pay off debt and boosts nestle 's N N share of the u.s. candy market to N N + gm and ford are expected to go head to head in the markets to buy up rival N N stakes in jaguar + gm confirmed it received u.s. antitrust clearance to boost its holding + sansui electric agreed to sell a N N stake to polly peck of britain for $ N million + still analysts said the accord does n't suggest japan is opening up to more foreign takeovers + kellogg suspended work on a $ N billion cereal plant indicating a pessimistic outlook by the cereal maker which has been losing market share + insurers could see claims totaling nearly $ N billion from the san francisco earthquake far less than the $ N billion from hurricane hugo + nashua strengthened its <unk> plan after announcing a dutch firm is seeking to buy up to N N of the new hampshire <unk> company + mobil is cutting back its u.s. oil and gas exploration and production group by up to N N as part of a restructuring of the business + markets + stocks volume N shares + dow jones industrials N off N transportation N off N utilities N up N + bonds shearson lehman hutton treasury index N off + commodities dow jones futures index N up N spot index N off N + dollar N yen off N N marks off N + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + thomas jefferson sold congress on the idea of the <unk> system for currency thus saving americans the headaches of pounds <unk> and pence + but he struck out with the <unk> system of metric <unk> and measures the french had invented + instead congress opted for the inches feet and yards the <unk> had brought with them + americans did n't dislike <unk> they simply ignored them + scientists felt differently + in N the swiss <unk> who headed the u.s. coast and <unk> survey made an iron <unk> that he had brought from europe the standard of measure + by the end of the century scientists had embraced the system + businessmen took their <unk> from the engineers + when congress finally passed the metric conversion act in N industry was far ahead + because the law made compliance voluntary it inspired little more than jokes + the press had a field day with questions about what would happen to <unk> <unk> and <unk> + today though the public is barely aware much of u.s. industry particularly companies manufacturing or selling overseas have made <unk> routine + general motors for example uses metric terms for its automobile bodies and power trains + in auto advertising however items such as <unk> are still described in inches + <unk> makers such as caterpillar and deere work in the metric system + the liquor industry went metric N years ago + the pentagon has led the charge particularly as military alliances spread world-wide + new weapons systems will be around until the next century notes john <unk> the defense department 's metric coordinator + still like the auto makers when dealing with mr. <unk> the pentagon <unk> to the tried and true + soldiers and <unk> are still measured in inches and pounds + whittle communications l.p. which for months has fought a public relations battle with education leaders said it has signed N schools in N states to subscribe to the controversial channel one news program and its sister programs + channel one a <unk> daily program supported by advertising is scheduled to be launched next march + whittle said its field staff signed up the N schools in N school districts after only eight weeks and company executives now expect to reach their start-up goal of N schools before the end of this year + christopher whittle chairman of the <unk> tenn. media company that is N N owned by time warner inc. said that by december N he expects to have channel one installed in about N schools with a potential audience of six million + installation of the tv system which includes providing free <unk> tv sets in <unk> begins in january + what we 've done in eight weeks shows we wo n't have enormous difficulties getting to the place we want to be said mr. whittle + he said his sales force is signing up schools at the rate of N a day + in california and new york state officials have opposed channel one + mr. whittle said private and <unk> schools in both states will be <unk> to see if they are interested in getting the programs + <unk> schools get the <unk> daily channel one news program whose four <unk> tv ads during each show have drawn protests from educators + subscribers also get the classroom channel which will feature <unk> educational programming similar to some <unk> shows and the <unk> 's channel which will offer <unk> programming for teachers and school administrators and will be supported by advertising + whittle has met some resistance + the educational network as mr. whittle has named the three programs has been offered to N school districts and whittle continues to negotiate with N districts + about N N of the school districts approached have rejected the network + mr. whittle said that so far three of the six schools that carried the program in a <unk> test last spring have <unk> to the program + one of the test schools <unk> high school in cincinnati rejected the project + john <unk> associate director of communications for cincinnati public schools said channel one was rejected because students watching the program did n't fare particularly better on a <unk> current events <unk> than a control school without the program and school <unk> were almost unchanged during the period when the program was being aired + the number of correct responses was N N on the test and school <unk> did n't change much said mr. <unk> + the pilot program was received well by teachers and students but there was n't reason enough to sign up + we even invited the public to stop by and see the program but there was n't much interest + advertisers are showing interest + last month whittle announced it had sold $ N million in advertising time on the network to national advertisers + mr. whittle friday said several more advertisers have been added + whittle is spending $ N million initially to launch the network + installation of satellite <unk> tvs and videocassette equipment will cost the company about $ N per school mr. whittle said + the following u.s. treasury corporate and municipal offerings are tentatively scheduled for sale this week according to dow jones capital markets report + $ N billion of three-month and six-month bills + $ N billion of <unk> cash management bills + associated natural gas corp. N million common shares via dillon read & co + b & <unk> crude carriers ltd. four million common shares via salomon brothers inc + chemical banking corp. N million common shares via goldman sachs & co + <unk> pharmaceuticals inc. N million units consisting of two shares of common stock and one common warrant via painewebber inc + <unk> corp. $ N million convertible debentures via merrill lynch capital markets + energy service co. N million common shares via alex + brown & sons inc + <unk> bancorp inc. N common shares via shearson lehman hutton inc + <unk> inc. two million common shares via kidder peabody & co + immune response corp. three million common shares via merrill lynch + <unk> pharmaceuticals inc. N million common shares via smith barney harris upham & co + <unk> corp. of <unk> inc. N million common shares via merrill lynch + municipal + new jersey wastewater treatment trust $ N of various bonds including $ N million wastewater treatment insured bonds series <unk> and $ N wastewater treatment bonds series <unk> via competitive bid + eastern municipal water district calif. $ N of N certificates of participation treatment plant projects via competitive bid + california health facilities financing authority $ N million of health facility revenue bonds catholic healthcare west series <unk> via a first boston corp. group + detroit $ N million of <unk> state aid bonds via a chemical securities inc. group + maryland community development administration department of housing and community development $ N million of single-family program bonds N <unk> and <unk> series via a merrill lynch group + <unk> county navigation district no. N texas $ N of pollution control revenue alternative minimum tax <unk> bonds south texas project units no. N and N via a goldman sachs group + new york city $ N of bonds fiscal N series c and d including $ N million tax-exempt bonds and $ N million taxable bonds via a goldman sachs group + santa ana redevelopment agency $ N million of tax allocation bonds N series <unk> via a donaldson lufkin & jenrette securities corp. group + pending <unk> county tenn. $ N million of refunding bonds series N via a first tennessee bank group + hewlett-packard co. said it raised its stake in octel communications corp. to N N of the common shares outstanding + in a securities and exchange commission filing hewlett-packard said it now holds N octel common shares including N shares bought from aug. N to oct. N for $ N to $ N a share + hewlett-packard a palo alto calif. computer company said it acquired the stock to develop and maintain a strategic partnership in which each company remains independent while working together to market and sell their products + octel said the purchase was expected + hewlett-packard <unk> it does n't plan to obtain control of octel a <unk> calif. maker of <unk> systems + according to the filing hewlett-packard acquired N common shares from octel as a result of an aug. N N stock purchase agreement + that accord also called for hewlett-packard to buy N octel shares in the open market within N months + in addition hewlett-packard acquired a two-year option to buy an extra N N of which half may be sold directly to hewlett-packard by octel + following is a weekly listing of <unk> net asset values of publicly traded investment fund shares reported by the companies as of friday 's close + also shown is the closing listed market price or a <unk> asked price of each fund 's shares with the percentage of difference + closed end bond funds + flexible portfolio funds + specialized equity and convertible funds + a ex-dividend + b as of thursday 's close + c translated at commercial rand exchange rate + e in canadian dollars + f as of wednesday 's close + z not available + <unk> <unk> + twice in two weeks the <unk> of the <unk> <unk> ual buy-out <unk> the stock market + now stock prices seem to be in a general retreat + since <unk> at N on oct. N the dow jones industrial average has lost N points or N N closing friday at N down N + the number of issues falling on the new york stock exchange each day is <unk> the number of gainers + and the number of stocks hitting new lows far <unk> the number setting new highs + but why should an <unk> $ N billion leveraged buy-out deal shake the foundations of the entire stock market + opinions vary about how important the ual deal was to the market 's health but analysts generally agree that the market gyrations created as the ual plan <unk> revealed a fundamental change in investor psychology + if this had happened a few months ago when the atmosphere was still very positive it would n't have been greeted with anything like the impact it has had over the past two weeks says dennis <unk> a market strategist at kidder peabody + there are of course analysts who view the <unk> that briefly <unk> through investors on oct. N and again on oct. N as <unk> <unk> of good judgment that have only temporarily undermined a healthy stock market + sure price action is volatile and that 's scary but <unk> stocks are still a good place to be they suggest + the reaction to the ual debacle is <unk> says john connolly chief market strategist at dean witter + ual is a small deal as far as the overall market is concerned + the only way you can make it a big deal is to draw <unk> that just do n't make sense + he suggests for example that investors may have assumed that just because ual could n't get financing no leveraged buy-outs can get financing + carried even further some investors assumed that since leveraged buy-outs are the only thing <unk> up stock prices the market would collapse if no more lbos could be done + there will still be deals argues mr. connolly + there may not be as many and the buyers may not get away with some of the things they 've done in the past but deals wo n't disappear + he forecasts that the emphasis in mergers and acquisitions may soon return to what he calls strategic deals in which somebody is taking over a company not to milk the cash flow but because it 's a good fit + and even without deals mr. connolly figures the market would remain healthy + he notes for instance that there has n't been a merger or acquisition among the N stocks in the dow jones industrial average since N yet that average only three weeks ago hit a record high + those stocks are up because their earnings are up and their dividends are up he says + even the volatility created by stock index arbitrage and other computer-driven trading strategies is n't entirely bad in mr. connolly 's view + for the long-term investor who picks stocks carefully the price volatility can provide welcome buying opportunities as short-term players scramble <unk> to sell stocks in a matter of minutes + who can make the better decision the guy who has N seconds to decide what to do or the guy with all the time in the world he says + what on earth does the ual deal have to do with the price of <unk> which i was able to buy on oct. N at a very attractive price + kidder peabody 's mr. <unk> also sees some benefits to the stock market 's recent drop + we 've run into a market that was beginning to run out of steam and get <unk> he says + the balloon had been <unk> up so big that when somebody came along with a <unk> in this case the ual deal we got a little pop + the pop <unk> up investors who had been getting a little too <unk> says mr. <unk> + it provided an excuse for people to get back to reality and to look at the economic data especially the third-quarter economic numbers and to realize that we ca n't continue to <unk> over what is going on in the junk bond market + but he figures that at current levels the stock market is <unk> valued even with the economy obviously slowing + just because we 've got some <unk> back in the market does n't mean it 's going lower from here he says + the bottom line is that it 's healthy to have this kind of <unk> activity especially after a N N gain in stock values over the past N months + he 's now estimating that after a period of consolidation the dow jones industrial average will once again forge new highs + maybe maybe not + <unk> joseph cohen a market strategist at drexel burnham lambert is n't nearly so <unk> about the market 's chances of surging to new highs anytime soon + her view is that stock prices have three major <unk> merger and buy-out proposals earnings and the economic outlook + at current levels of economic activity and earnings stocks are fairly valued she says + but any chance for prices to surge above fair value lies in the speculation that <unk> a vigorous merger and buy-out business and ual has obviously put a <unk> on that + stocks are n't cheap anymore there have been some judicial and legislative changes in the merger area and all of this changes the <unk> of deals she says + i 'm not saying they 've stopped altogether but future deals are going to be structured differently and bids probably wo n't be as high + but that 's not the only problem for stocks + the other two <unk> earnings and the economic outlook are troubling too + <unk> is getting all the <unk> right now but these other things have been building up more gradually she says + third-quarter earnings have been generally disappointing and with economic data showing a clear slowing the outlook for earnings in the fourth quarter and all of N is getting worse + there are a lot more downward than upward revisions and it looks like people are questioning corporate profits as a means of support for stock prices she says + with all this can stock prices hold their own + the question is <unk> at this point she says + it depends on what happens + if the economy <unk> into a recession then this is n't a level that 's going to hold + friday 's market activity + stock prices tumbled for a third consecutive day as earnings disappointments a sluggish economy and a fragile junk bond market continued to weigh on investors + the dow jones industrial average fell N points to N in active trading + volume on the new york stock exchange totaled N shares + declining issues on the big board were far ahead of gainers N to N + for the week the dow jones industrial average sank N points or N N + oil stocks escaped the brunt of friday 's selling and several were able to post gains including chevron which rose N to N N in big board composite trading of N million shares + the stock 's advance reflected ongoing speculation that pennzoil is <unk> a stake in the company according to dow jones professional investor report + both companies declined to comment on the rumors but several industry analysts told the professional investor report they believed it was <unk> that pennzoil may be buying chevron shares as a prelude to pushing for a restructuring of the company + usx gained N to N N on a report in business week magazine that investor carl icahn is said to have raised his stake in the oil and steel company to just about N N + earlier this month mr. icahn boosted his usx stake to N N + elsewhere in the oil sector exxon rallied N to N N amoco rose N to N texaco was unchanged at N N and atlantic richfield fell N N to N N + mobil which said it plans to cut its exploration and production work force by about N N in a restructuring dropped N to N N + the precious metals sector <unk> other dow jones industry groups by a wide margin for the second consecutive session + <unk> mining rose N to N battle mountain gold climbed N to N N <unk> mining rose N N to N N <unk> minerals added N to N <unk> <unk> went up N to N N and <unk> ltd. jumped N N to N N + gold mining stocks traded on the american stock exchange also showed strength + echo bay mines rose N to N N <unk> gold advanced N N to N and <unk> class a gained N to N N + unisys dropped N to N N after posting a third-quarter loss of $ N a share including restructuring charges but other important technology issues were mixed + compaq computer which had lost N N thursday following a disappointing quarterly report gained N to N N + international business machines dropped N to N N + digital equipment tacked on N N to N N and hewlett-packard fell N to N N + <unk> trading swelled volume in merrill lynch which closed unchanged at N N as N million shares changed hands + the stock has a N N dividend yield and goes ex-dividend today + erbamont advanced N N to N N on N million shares + montedison which owns about N N of the company 's common stock agreed to buy the rest for $ N a share + <unk> another <unk> unit of montedison added N N to N N + milton roy jumped N to N N + crane said it holds an N N stake in the company and may seek control + crane dropped N N to N N + comprehensive care which terminated its agreement to merge with first hospital dropped N to N N + the company 's decision was made after first hospital failed to obtain financing for its offer + federal investigators have identified the problem in last july 's crash of a united airlines flight in iowa a structural flaw that developed during the making of a titanium engine disk + for several months officials at the federal aviation administration and the national transportation safety board have suspected that a <unk> flaw in the disk led to a crack that ultimately caused the <unk> engine to break apart in flight + the explosion sent <unk> of metal flying <unk> the <unk> 's <unk> or control systems and led to the crash that killed N people + but investigators could confirm their theory only after the recent <unk> of a big chunk of flight N 's <unk> engine from a <unk> near the <unk> city airport in iowa + the safety board will begin four days of hearings on the accident tomorrow in <unk> city + among the issues the board will examine is whether united airlines a unit of ual corp. should have been able to detect the cracks through maintenance checks + the engine involved was a <unk> made by general electric co + anthony broderick the faa 's acting executive director for regulatory standards and compliance said that recent tests of the failed engine disk indicate that a flaw known as hard <unk> occurred in the titanium during its production almost N years ago + he said there was n't any way to detect the flaw at that time and that the process has since been changed to decrease the chance that such flaws would occur + the faa already has ordered that all N disks made by the old process be removed from the planes and <unk> to an <unk> test in a <unk> chamber + such tests make the faa confident that a <unk> <unk> accident wo n't happen again said mr. broderick + a spokesman for ge said that the company has been working with the faa all along on this issue and will comply fully with the required <unk> + but he also pointed out that the recalls will have no impact on ge 's engine production + the <unk> series engines are n't being manufactured any more they are only being used in the <unk> series N planes currently in service he said + a frozen <unk> in <unk> may offer an important clue about whether the earth is warming <unk> + researchers at ohio state university and <unk> institute of <unk> and <unk> in china have <unk> samples of <unk> ice in <unk> and say temperatures there have been significantly higher on average over the past <unk> than in any similar period in the past N years + the ice samples are an important piece of evidence supporting theories that the earth has <unk> considerably in recent times largely because of <unk> in the air and will warm far more in the century ahead + a substantial warming would <unk> some of the earth 's <unk> ice <unk> raising the level of the <unk> and causing widespread flooding of heavily <unk> coastal areas + if you can use data to <unk> what happened in the past you have much more confidence in predictions for the future said <unk> thompson a research scientist at ohio state who <unk> for and <unk> the ice samples + to compare temperatures over the past N years researchers <unk> the changes in <unk> of two forms of <unk> + these measurements can indicate <unk> changes researchers said because the rates of <unk> of these <unk> atoms differ as temperatures change + analysis of ice from the <unk> ice cap a <unk> <unk> in <unk> N feet above sea level show that average temperatures were higher in N than in any other <unk> period since before the last ice age mr. thompson said + some climate models project that interior regions of asia would be among the first to heat up in a global warming because they are far from <unk> which moderate <unk> changes + but the <unk> samples are n't definitive proof that the so-called greenhouse effect will lead to further substantial global heating mr. thompson acknowledged + according to greenhouse theories increased carbon dioxide emissions largely caused by burning of fossil fuels will cause the earth to warm up because carbon dioxide prevents heat from <unk> into space + skeptics say that if that 's the case temperatures should have risen fairly <unk> over the past century reflecting the increase in carbon dioxide + instead the <unk> <unk> record shows increasing temperatures from N through the early 1950s <unk> temperatures from the late 1950s through the mid-1970s then higher temperatures again through last year + other <unk> data show similar <unk> swings + climate <unk> drastically due to natural causes said mr. thompson + but he said ice samples from peru <unk> and <unk> all show substantial signs of warming + <unk> corp. said its vice president for manufacturing resigned and its houston work force has been trimmed by N people or about N N + the maker of hand-held computers and computer systems said the personnel changes were needed to improve the efficiency of its manufacturing operation + the company said it has n't named a successor to ronald <unk> the vice president who resigned + its houston work force now totals N + cnw corp. said the final step in the acquisition of the company has been completed with the merger of cnw with a subsidiary of chicago & north western holdings corp + as reported cnw agreed to be acquired by a group of investors led by blackstone capital partners limited partnership for $ N a share or about $ N million + congress sent to president bush an $ N billion military construction bill that cuts spending for new installations by N N while revamping the pentagon budget to move more than $ N million from foreign bases to <unk> projects + the fiscal N measure builds on a pattern set earlier this year by house and senate defense <unk> committees and at a time of <unk> for the military and concern about the u.s. 's standing in the world economy overseas spending is most vulnerable + total pentagon requests for installations in west germany japan south korea the united kingdom and the philippines for example are cut by almost two-thirds while lawmakers added to the military budget for construction in all but a dozen states at home + the result is that instead of the pentagon 's proposed split of N between domestic and foreign bases the reduced funding is distributed by a ratio of approximately N + the extra margin for bases in the u.s. <unk> the power of the appropriations committees meanwhile lawmakers used their positions to <unk> as much as six times what the pentagon had requested for their individual states + house appropriations committee chairman jamie whitten d. miss helped secure $ N million for his state or more than double the pentagon 's budget + west virginia home of senate appropriations committee chairman robert byrd would receive $ N million four times the military 's request + tennessee and north carolina home states of the two democratic chairmen of the house and senate military construction <unk> receive $ N million or N N above the pentagon 's request + though spending for iowa and oregon was far less their increases above pentagon requests N N and N N respectively were much greater because of the influence of republicans at critical <unk> + the swift passage of the bill which cleared the senate and house on simple voice votes last week contrasts with the problems still facing a more <unk> $ N billion measure funding housing environmental space and veterans programs + by an N margin the senate approved the bulk of the spending friday but the bill was then sent back to the house to resolve the question of how to address budget limits on credit <unk> for the federal housing administration + the house democratic leadership could seek to waive these restrictions but the underlying bill is already under attack for excesses elsewhere + appropriations committees have used an <unk> of devices to <unk> as much as $ N billion in spending and as critics have <unk> to these devices the bill can seem like a <unk> <unk> trying to make it past ice and <unk> to reach safer winter <unk> + much of the excess spending will be pushed into fiscal N and in some cases is temporarily <unk> in <unk> accounts in anticipation of being transferred to <unk> areas after the budget <unk> is completed + for example a house-senate conference <unk> increased the national aeronautics and space administration budget for construction of facilities to nearly $ N million or more than $ N million above what either chamber had previously approved + part of the increase would provide $ N million toward ensuring construction of a costly solid <unk> facility in mr. whitten 's mississippi + but as much as $ N million or nearly N N of the account is marked for potential transfers to research management and flight accounts that are spent out at a faster <unk> + the bill 's managers face criticism too for the unusual number of conditions openly imposed on where funds will be spent + conservatives embarrassed by republican <unk> scandals at the department of housing and urban development have used the issue in an effort to shift blame onto a <unk> congress + hud secretary jack kemp backed an unsuccessful effort to strike such language last week but received little support from the white house budget office which wants to protect <unk> funding in the bill and has <unk> to turn its eyes from pork-barrel amendments + within discretionary funds for community development grants more than $ N million is allocated to six projects in michigan home state of a subcommittee chairman rep. bob <unk> + house speaker thomas foley won $ N for a project in his district in washington state and $ N million earmarked by sen. daniel inouye amounts to a business subsidy under the title <unk> sugar mills job <unk> + the powerful democrat had first wanted to add language <unk> environmental restrictions on two mills on the <unk> coast that are threatening to close + when this plan met resistance it was agreed instead to take money from hud to subsidize needed improvements in two settling <unk> for the mills which employ an estimated N workers according to mr. inouye 's office + dennis <unk> 's oct. N page-one article river of <unk> about the poverty along the mississippi <unk> <unk> memories of when my parents were <unk> in <unk> arkansas only a few miles from the river + although we were white the same economic factors affected us as affects the black people mr. <unk> writes about + fortunately an <unk> with a college degree bought a small farm and moved us N miles north to good schools and an environment that opened the world of opportunity for me as an <unk> + though i 've been <unk> with academic degrees and some success in the <unk> world i 've never forgotten or lost contact with those memories of the 1930s + most of the land in that and other parts of the delta are now owned by second third or fourth generations of the same families + these are the families who used and sometime abused their <unk> people who had no encouragement and little access to an education or training for a better life + following world war ii when one family with <unk> equipment could farm crops formerly requiring N families the surplus people were dumped into the mainstream of society with no social security no skills in the workplace no hope for their future except welfare + and today many of their children <unk> and <unk> remain on welfare + in the meantime the <unk> continue receiving generous subsidies that began during new deal days + or those who choose not to farm can lease their <unk> and crop <unk> for <unk> sums + farmers in the midwest and other areas have suffered but those along the mississippi continue to <unk> with holdings that were built with the sweat of men and women living in economic <unk> + and when they were no longer needed they were turned loose <unk> to build lives of their own + <unk> harris + chairman + <unk> bank + atlanta + because the cycle of poverty along the lower mississippi goes back so many generations breaking this cycle will be next to impossible + <unk> the cycle appears not as waves but as a downward <unk> + yet the evidence that we have not hit bottom is found in the fact that we are not yet helping ourselves + the people of the delta are waiting for that big factory to open river traffic to increase government spending to fund <unk> programs or public schools to educate <unk> students + because we refuse to face the tough answers the questions continue as <unk> for the commissions and committees for the media and politicians + <unk> <unk> does not lend itself to solving the problems of <unk> <unk> pregnancy or lack of parental support or <unk> + does the delta deserve government help in attracting industry when the majority of residents black and white do not realize <unk> <unk> potential employers + should we focus on the region 's <unk> rate when the <unk> <unk> and the school boards <unk> and legislators prohibit schools from teaching the two ways <unk> or <unk> of <unk> <unk> pregnancy + delta problems are difficult not impossible to solve i am just not convinced that we are ready to solve them yet + leslie falls <unk> + little rock ark + i would like to issue a challenge to corporate america + the next time expansion plans are mentioned at the old company and somebody says <unk> <unk> guys nobody can do it like japan or south korea i wish you would <unk> in and say hold it <unk> why do n't we compare prices and use our own little third world country + we would even save on freight + there is no mystery why the delta <unk> <unk> the blues + eugene s. <unk> <unk> + <unk> miss + your story is an <unk> to the citizens of the mississippi delta + many of the problems you presented exist in every part of this country + poverty is only two blocks from president bush 's residence + for years we tried to ignore the problem of poverty and now that it has gotten out of hand it 's a new crusade for the media and our democratic congress + nobody should have to live in such poor conditions as in sugar <unk> but when you travel to washington boston chicago or new york the same problems exist + the only difference is in those cities the poor are <unk> in <unk> apartments each consisting of one room with <unk> pipes called plumbing <unk> and <unk> everywhere and <unk> elevators and with the building <unk> by gangs and drug dealers + many middle-class people would love free food medicaid insurance utilities and rent + then maybe i could stay home and have seven children and watch <unk> <unk> like <unk> in the article instead of having one child and working constantly just to stay above water like so many families in this country + <unk> ann wilson + greenville miss + mobil corp. is in the midst of cutting back its exploration and production group which finds and develops oil and gas reserves in the u.s. by as much as N N as part of a new restructuring of that sector of its business + management advised employees friday that it was going to reduce employment in production operations of the group by N N or N people + the exploration side of the unit has recently <unk> a similar overhaul during which it also lost as many as N employees a company spokesman said in response to questions + mobil exploration & producing u.s. inc. the group involved currently has a work force of somewhat less than N + a few years ago mobil restructured the entire company during an industrywide <unk> + but since then u.s. oil production has declined and mobil wants to focus its <unk> efforts overseas + mobil <unk> to the <unk> cuts last week when it took a $ N million charge as part of its third-quarter earnings and attributed it to a restructuring + mobil officials said that it is unlikely any additional charges related to this move will be taken in future quarters + on wednesday mobil will begin offering separation packages and voluntary retirement in its u.s. production operation + mobil officials said they have been studying ways of streamlining these operations since early this year + during the coming months <unk> of management will be <unk> away and regional offices will become more <unk> + for greater efficiency employees at those locations will be <unk> into teams responsible for managing the properties under their jurisdiction mobil said + the main feature of the new organization is that each local manager will have both the authority and accountability for profitable and technically sound operations said charles e. <unk> president of the mobil unit + field offices at new orleans houston denver midland <unk> <unk> calif. oklahoma city and liberal kan. will be maintained + but the staffs at some of those locations will be slashed while at others the work force will be increased + for instance employment in denver will be reduced to N from N + but on the west coast where profitable oil production is more likely than in the <unk> region the <unk> calif. office staff of N will grow by N to N + the reorganization will focus on the value and potential of assets mr. <unk> said + wanted an investment that 's as simple and secure as a certificate of deposit but offers a return worth getting excited about + with $ N billion of cds maturing this month a lot of people have been <unk> the financial landscape for just such an investment + in april when many of them bought their cds six-month certificates were yielding more than N N investors willing to look could find double-digit yields at some banks and thrifts + now the nationwide average yield on a six-month cd is just under N N and N N is about the best around + but investors looking for alternatives are n't finding it easy + yields on most fixed-income securities are lower than several months ago + and the stock market 's recent gyrations are a painful reminder of the dangers there + if you 're looking for a significantly higher yield with the same level of risk as a cd you 're not going to find it says washington financial planner dennis m. <unk> + there are however some alternatives that <unk> investors should consider investment advisers say + short-term municipal bonds bond funds and <unk> annuities are some of the choices they mention and not just as a way to get a higher return + in particular advisers say investors may want to look at securities that reduce the risk that cd holders are <unk> right now of having to reinvest the proceeds of maturing short-term certificates at lower rates + a mix of cds and other holdings may make the most sense + people should remember their money is n't all or nothing they do n't need to be shopping for the one <unk> investment and putting all their money in it says <unk> md. adviser karen schaeffer + here 's a look at some of the alternatives + short-term municipals + investors with a heavy tax load should take out their <unk> + yields on municipal bonds can be higher than after-tax yields on cds for maturities of perhaps one to five years + that 's because <unk> interest is exempt from federal income tax and from state and local taxes too for <unk> investors + for an investor paying tax at a N N rate a seemingly <unk> N N yield on a one-year <unk> is equivalent to a taxable N N + rates approach N N on five-year municipals + some of the more cautious cd holders might like <unk> municipals + these securities get top credit ratings because the issuers have put aside u.s. bonds that will be sold to pay off holders when the municipals are retired + it 's a <unk> you do n't have to worry about diversification you do n't have to worry about quality says steven j. <unk> executive vice president of the new york bond firm of <unk> <unk> & <unk> inc + consider a <unk> bond portfolio with issues maturing in say N N and N advises malcolm a. <unk> a <unk> r.i. financial planner + the idea is to have money rolling over each year at prevailing interest rates + bond funds + bond mutual funds offer diversification and are easy to buy and sell + that makes them a reasonable option for investors who will accept some risk of price <unk> in order to make a bet that interest rates will decline over the next year or so + buyers can look forward to double-digit annual returns if they are right + but they will have disappointing returns or even losses if interest rates rise instead + bond resale prices and thus fund share prices move in the opposite direction from rates + the price movements get bigger as the maturity of the securities <unk> + consider for instance two bond funds from vanguard group of investment cos. that were both yielding N N on a recent day + the short term bond fund with an average maturity of N N years would deliver a total return for one year of about N N if rates drop one percentage point and a one-year return of about N N if rates rise by the same amount + but in the same circumstances the returns would be a more extreme N N and N N for the vanguard bond market fund with its N 1\/2-year average maturity + you get <unk> returns from bonds if you guess right on rates says james e. wilson a columbia s.c. planner + if interest rates do n't change bond fund investors ' returns will be about equal to the funds ' current yields + deferred annuities + these insurance company contracts feature some of the same tax benefits and restrictions as <unk> individual retirement accounts investment gains are compounded without tax consequences until money is withdrawn but a N N penalty tax is imposed on withdrawals made before age N N + aimed specifically at cd holders are so-called <unk> annuities or certificates of annuity + an interest rate is guaranteed for between one and seven years after which holders get N days to choose another guarantee period or to switch to another insurer 's contract without the surrender charges that are common to annuities + some current rates exceed those on cds + for instance a <unk> annuity from north american co. for life & health insurance chicago offers N N interest for one year or a N N rate for two years + annuities are rarely a good idea at age N because of the withdrawal restrictions + but at age N they may be a great deal says mr. wilson the columbia s.c. planner + money market funds + that 's right money market mutual funds + the conventional wisdom is to go into money funds when rates are rising and shift out at times such as the present when rates seem headed down + with average maturities of a month or so money funds offer fixed share prices and floating returns that track market interest rates with a slight lag + still today 's <unk> money funds may beat cds over the next year even if rates fall says guy <unk> an editor of the bond market <unk> newsletter in atlanta + that 's because <unk> funds currently offer yields almost N N percentage points above the average cd yield + mr. <unk> likes the dreyfus worldwide dollar money market fund with a seven-day compound yield just under N N + a new fund its operating expenses are being temporarily subsidized by the sponsor + try combining a money fund and an <unk> bond fund as a <unk> bet on falling rates suggests back bay <unk> inc. a mutual fund unit of new england insurance co + if rates unexpectedly rise the increasing return on the money fund will partly offset the lower-than-expected return from the bond fund + federal drug regulators concerned over british reports that diabetics have died after shifting from animal to <unk> insulin say they are considering a study to see if similar deaths have occurred here + the united kingdom reports came from dr. patrick toseland head of clinical chemistry at guy 's hospital in london + in a telephone interview friday dr. toseland said the number of sudden <unk> deaths of diabetics he had seen this year was N compared with just two in N + at least six of the deaths occurred among relatively young diabetics who had switched from animal to human insulin within the past year he said + dr. <unk> <unk> director of <unk> and <unk> drug products for the u.s. food and drug administration said fda officials have discussed dr. toseland 's findings fairly <unk> + while there have been no reports of similar sudden <unk> deaths among diabetics in the u.s. dr. <unk> said the fda plans to examine dr. toseland 's evidence and is considering its own study here + dr. toseland a <unk> said he was preparing an article for a british <unk> medical journal raising the possibility that the deaths may have occurred after human insulin <unk> critical warning signs indicating hypoglycemia or low blood sugar which can kill diabetics + the usual warning signs of hypoglycemia include <unk> anxiety and <unk> + with proper warning diabetics can easily raise their blood sugar to safe levels by eating sugar or <unk> food + the <unk> data certainly shows that some of the people were not aware of the rapid <unk> of hypoglycemia dr. toseland said + at the u.s. national institutes of health dr. robert e. <unk> chief of the <unk> program branch said no evidence of unexpected deaths from hypoglycemia had shown up in a study of N diabetics that has been under way at nih for five years + however he said officials conducting the study had n't been looking for signs of problems related to hypoglycemia <unk> + we are now monitoring for it much more closely he said + we do know there are slight differences in the way human and animal <unk> drive down blood sugar dr. <unk> said + the <unk> drug starts the blood sugar dropping sooner and drives it down faster he said + but we do n't believe there is enough of a difference to be <unk> significant dr. <unk> said + reports of dr. toseland 's findings in the british press have triggered widespread concern among diabetics there + both the british <unk> association and the committee on safety in <unk> britain 's equivalent of the u.s. fda recently issued statements noting the lack of hard scientific evidence to support dr. toseland 's findings + on friday the american <unk> association issued a similar statement urging the six million u.s. diabetics not to <unk> to the british report + a loss of the warning symptoms of hypoglycemia is a complex problem that is very unlikely to be due simply to the type of insulin used the american association said + the fda already requires drug manufacturers to include warnings with insulin products that symptoms of hypoglycemia are less <unk> with human insulin than with <unk> products + eli lilly & co. the <unk> drug manufacturer dominates the u.s. human insulin market with its product known as <unk> + lilly is building plants to make the insulin in indianapolis and <unk> france + in its latest annual report lilly said <unk> sales have shown excellent growth + lilly officials said they had seen reports of <unk> <unk> among some patients making the shift from animal to human insulin but did n't know if the problem had caused any deaths + dr. <unk> thompson a lilly group vice president said the company 's clinical trials of both its animal and <unk> <unk> indicated no difference in the level of hypoglycemia between users of either product + dr. toseland said most of the british diabetics who died had been taking a <unk> insulin made by <unk> a <unk> manufacturer + none of the diabetics were using lilly 's insulin + <unk> corp. said it will reduce its <unk> work force by about N N effective tomorrow in an effort to stem continuing losses + the company which makes data base systems and software said it expects to report a loss for the third quarter ended sept. N + defense intellectuals have complained for years that the pentagon can not determine priorities because it has no strategy + last april the new defense secretary richard cheney acknowledged that given an ideal world we 'd have a nice neat orderly process + we 'd do the strategy and then we 'd come around and do the budget + this city does n't work that way + with a five-year defense plan costing more than $ N trillion it 's about time we put together a defense strategy that works in washington + this wo n't happen until strategists come down from their ivory tower and learn to work in the real world of limited budgets and uncertain futures + as it is we identify national goals and the threats to these goals we shape a strategy to counter these threats we determine the forces needed to execute the strategy before finally <unk> the budgets needed to build and maintain the forces + these procedures consume millions of <unk> of labor and produce tons of paper and each year their end product the five year defense plan promptly <unk> away + the <unk> on the left shows how this happens see accompanying illustration wsj oct. N N + compare the past eight five-year plans with actual appropriations + the pentagon 's strategists produce budgets that simply can not be executed because they assume a defense strategy depends only on goals and threats + strategy however is about possibilities not hopes and dreams + by ignoring costs u.s. strategists <unk> their responsibility for hard decisions + that puts the real strategic decisions in the hands of others <unk> <unk> <unk> and <unk> + these people have different <unk> + and as a result as the recent vote by the house to undo mr. cheney 's program <unk> suggests the <unk> of jobs is becoming the real goal of defense strategy + how can we turn this situation around + reform starts in the pentagon + strategists should consider the impact of budget uncertainties at the beginning of the planning process + they ought to examine how a range of optimistic to pessimistic budget scenarios would change the defense program + they would then develop priorities by identifying the least painful program cuts as they moved from higher to lower budgets + they would also identify the best way to add programs should the budget come in at higher levels + this kind of <unk> analysis is common in war planning and business planning + there is no reason that it can not be done for defense planning + two steps are necessary to translate this idea into action + step N <unk> up our books + our five-year plan contains three accounting devices negative money an above <unk> management reserve and optimistic inflation estimates which <unk> the spending the pentagon has committed itself to by almost $ N billion + negative money was invented in N to make the N five year defense plan conform to the numbers in president reagan 's final budget <unk> to congress + that plan exceeded the numbers contained in his budget message by $ N billion + to make the books balance as is required by law somebody invented a new budget line item that simply <unk> $ N billion + it is known in the pentagon as the negative wedge + the pentagon argues that the negative wedge is the net effect of $ N billion in the <unk> unidentified procurement reductions that it intends to find in future years and $ N billion in an above <unk> management reserve that accounts for <unk> programs that will <unk> in the future + the N plan also assumes inflation will decline to N N by N + most <unk> including those in the congressional budget office assume inflation will be in excess of N N in each of those five years + at that rate the defense plan is <unk> by $ N billion + by adding the negative wedge and <unk> the remaining program using a more probable inflation estimate we arrive at a baseline program costing $ N trillion between N and N + step N <unk> how four <unk> lower budget scenarios would change the baseline and how these changes would affect our national security + the <unk> on the right which assumes a N N rate of inflation places these scenarios in the context of recent appropriations see accompanying illustration wsj oct. N N + note how the baseline program assumes a sharp increase in future appropriations + step N will answer the question what happens if these increases do not <unk> + scenario N known as the constant dollar freeze <unk> the pentagon for inflation only it <unk> upward at N N per year + this scenario has been the rough position of the u.s. senate since N and it reduces the baseline by $ N billion between N and N + scenario N the current dollar freeze has been the <unk> position of the house of representatives for about four years + it <unk> the budget at its current level and forces the pentagon to eat the effects of inflation until N + this reduces the baseline by $ N billion + scenario N <unk> the recent <unk> between the house and the senate it <unk> the difference between scenarios N and N by increasing the budget at N N per year + it reduces the baseline by $ N billion + finally scenario N reduces the budget by N N per year for the next five years a total reduction of $ N billion + this can be thought of as a pessimistic prediction perhaps driven by the <unk> effects of the gramm-rudman deficit reduction law or possibly a <unk> of <unk> with the soviet union + the strategic planners in the joint chiefs of staff would construct the most effective defense program for each scenario <unk> strengths and <unk> weaknesses + they would conclude their efforts by producing a comprehensive net assessment for each plan including the assumptions made an analysis of its deficiencies and limitations the impact on national security and the best strategy for working around these limitations + this exercise would reveal the true cost of a particular program by forcing the strategists to make hard decisions + if for example they choose to keep the b-2 <unk> bomber they would have to sacrifice more and more other programs such as carrier <unk> or army divisions as they moved toward lower budget levels + these <unk> would <unk> priorities by <unk> when the cost of the b-2 became <unk> + some may be <unk> to argue that the idea of a strategic review merely <unk> the <unk> <unk> <unk> <unk> concept of the carter administration + but <unk> did not involve the strategic planners in the joint chiefs of staff and therefore <unk> into a <unk> drill driven by budget politics + anyway <unk> 's procedures were so <unk> that everyone involved was crushed under a burden of <unk> + a strategic review is fundamentally different + it would be run by the joint chiefs under simple <unk> produce the best possible force for each budget scenario and provide the secretary of defense with a comprehensive net assessment of how that force could be used to achieve u.s. goals + it might be feared that even thinking about lower budgets will hurt national security because the door will be opened to <unk> budget cutting by an irresponsible congress + this argument plays well in the atmosphere of <unk> and <unk> <unk> the pentagon and congress and unfortunately there is some truth to it + but in the end it must be rejected for logical as well as moral reasons + to say that the pentagon should act <unk> because acting <unk> will <unk> congress into acting <unk> leads to the conclusion that the pentagon should deliberately <unk> its needs in the national interest in other words that it is justified in committing a crime lying to congress because it is morally superior + strategy is not a game between the pentagon and congress it is the art of the possible in a world where constraints force us to choose between <unk> or <unk> alternatives + if we want meaningful priorities we must understand the <unk> they <unk> before we make commitments + strategy is not a separate event in an <unk> <unk> of <unk> events it is a way of thinking that <unk> threats to our interests in a manner consistent with our financial cultural and physical limitations + mr. <unk> is a permanent pentagon official + this is a <unk> version of an <unk> that will appear in the january issue of the naval institute proceedings + the views expressed do not reflect the official policy of the department of defense + although bullish dollar sentiment has <unk> many currency analysts say a massive sell-off probably wo n't occur in the near future + while wall street 's tough times and lower u.s. interest rates continue to undermine the dollar weakness in the pound and the yen is expected to offset those factors + by default the dollar probably will be able to hold up pretty well in coming days says <unk> <unk> a foreign-exchange adviser at credit suisse + we 're close to the bottom of the near-term ranges she contends + in late friday afternoon new york trading the dollar was at N marks and N yen off from late thursday 's N marks and N yen + the pound strengthened to $ N from $ N + in tokyo monday the u.s. currency opened for trading at N yen down from friday 's tokyo close of N yen + the dollar began friday on a firm note gaining against all major currencies in tokyo dealings and early european trading despite reports that the bank of japan was seen unloading dollars around N yen + the rise came as traders continued to dump the pound after the sudden resignation thursday of british chancellor of the exchequer nigel lawson + but once the pound <unk> with help from purchases by the bank of england and the federal reserve bank of new york the dollar was dragged down traders say by the stock-market slump that left the dow jones industrial average with a loss of N points + with the stock market <unk> and dollar buyers discouraged by signs of u.s. economic weakness and the recent decline in u.s. interest rates that has diminished the <unk> of dollar-denominated investments traders say the dollar is still in a <unk> position + they 'll be looking at levels to sell the dollar says james <unk> a foreign-exchange marketing representative at bank of montreal + while some analysts say the dollar eventually could test support at N marks and N yen mr. <unk> and others do n't see the currency <unk> sliding under support at N marks and N yen soon + predictions for limited dollar losses are based largely on the pound 's weak state after mr. lawson 's resignation and the yen 's inability to strengthen substantially when there are dollar <unk> + with the pound and the yen lagging behind other major currencies you do n't have a confirmation that a sharp dollar downturn is in the works says mike <unk> senior currency analyst at <unk> inc. in chicago + as far as the pound goes some traders say a slide toward support at $ N may be a favorable development for the dollar this week + while the pound has attempted to stabilize currency analysts say it is in critical condition + sterling plunged about four cents thursday and hit the week 's low of $ N when mr. lawson resigned from his <unk> post because of a policy <unk> with other cabinet members + he was succeeded by john major who friday expressed a desire for a firm pound and supported the relatively high british interest rates that he said are working exactly as intended in reducing inflation + but the market remains uneasy about mr. major 's policy strategy and the prospects for the pound currency analysts contend + although the bank of england 's tight monetary policy has fueled worries that britain 's slowing economy is headed for a recession it is widely believed that mr. lawson 's willingness to <unk> up the pound with interest-rate increases helped stem pound selling in recent weeks + if there are any signs that mr. major will be less inclined to use interest-rate boosts to rescue the pound from another plunge that currency is expected to fall sharply + it 's fair to say there are more risks for the pound under major than there were under lawson says malcolm roberts a director of international bond market research at salomon brothers in london + there 's very little upside to sterling mr. roberts says but he adds that near-term losses may be small because the selling wave that followed mr. major 's appointment apparently has run its course + but some other analysts have a <unk> forecast for the pound particularly because britain 's inflation is <unk> at a relatively <unk> annual rate of about N N and the nation is <unk> with a struggling government and large current account and trade deficits + the pound likely will fall in coming days and may trade as low as N marks within the next year says nigel <unk> an international economist at james capel & co. in london + the pound was at N marks late friday off sharply from N in new york trading a week earlier + if the pound falls closer to N marks the bank of england may raise britain 's base lending rate by one percentage point to N N says mr. <unk> + but such an increase he says could be viewed by the market as too little too late + the bank of england indicated its desire to leave its monetary policy unchanged friday by declining to raise the official N N <unk> rate that it charges discount houses analysts say + pound concerns aside the lack of strong buying interest in the yen is another <unk> for the dollar many traders say + the dollar has a natural base of support around N yen because the japanese currency has n't been purchased heavily in recent weeks says ms. <unk> of credit suisse + the yen 's softness she says apparently stems from japanese investors ' interest in buying dollars against the yen to purchase u.s. bond issues and persistent worries about this year 's upheaval in the japanese government + on new york 's commodity exchange friday gold for current delivery jumped $ N to $ N an ounce the highest settlement since july N + estimated volume was a heavy seven million ounces + in early trading in hong kong monday gold was quoted at $ N an ounce + we are deeply <unk> that a recent editorial stated that the americans with disabilities act of N was <unk> primarily by democratic senators kennedy and <unk> with a <unk> based on the <unk> that most americans are hostile to the disabled + perhaps even more offensive is the statement it is surprising that george bush and the white house inner circle would ally themselves with this <unk> philosophy + this legislation was not drafted by a handful of democratic <unk> + quite the contrary it results from years of work by members of the national council on the handicapped all appointed by president reagan + you <unk> the bill as something democratic leaders <unk> the administration into <unk> + the opposite is true it 's the product of many meetings with administration officials senate staffers advocates and business and transportation officials + many congressmen are citing the compromise on the americans with disabilities act of N as a model for bipartisan deliberations + most national council members are themselves disabled or are parents of children with disabilities + we know <unk> the discrimination addressed by the act to be told there 's no place for your child in school to spend <unk> hours at home because there is no transportation for someone in a <unk> to be denied employment because you are disabled + your editorial <unk> <unk> this legislation the lawyers ' employment act + for the N million people with disabilities and their families this legislation is the <unk> <unk> + <unk> swift <unk> + <unk> + national council on the handicapped + a group of investors led by giant group ltd. and its chairman burt sugarman said it filed with federal antitrust regulators for clearance to buy more than N N of the stock of rally 's inc. a fast-food company based in louisville <unk> + rally 's operates and <unk> about N fast-food restaurants throughout the u.s. + the company went public earlier this month offering N shares of common stock at $ N a share + giant has interests in cement making and newsprint + the investor group includes restaurant investment partnership a california general partnership and three rally 's directors mr. sugarman james m. trotter iii and william e. trotter ii + the group currently holds N rally 's shares or N N of its <unk> shares outstanding + giant group owned N N of rally 's shares before the initial public offering + a second group of three company directors aligned with rally 's founder james patterson also is seeking control of the fast-food chain + it is estimated that the patterson group controls more than N N of rally 's stock + rally officials were n't available to comment late yesterday + for the year ended july N rally had net income of $ N million or N cents a share on revenue of $ N million + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + dpc acquisition partners a hostile suitor for dataproducts corp. filed a petition in federal district court in los angeles seeking to have its standstill agreement with the computer printer maker declared <unk> and it <unk> with a $ <unk> tender offer for the company + the offer would give the transaction an indicated value of $ N million based on the N million shares the group does n't already own + dpc holds about N N of dataproducts ' shares + lawyers representing dpc declined to elaborate saying they did n't have a final copy of the filing + jack davis dataproducts ' chairman said he had n't yet seen the filing and could n't comment + dpc made a $ <unk> bid for the company in may but dataproducts management considered the $ N million proposal <unk> + dataproducts had sought a buyer for several months but it is now in the midst of a restructuring plan and management says the company is no longer for sale + <unk> power co. a subsidiary of american electric power co. said it will redeem on dec. N the entire $ N million of its N N N first mortgage bonds due N + the redemption price will be N N of the principal amount of the bonds plus accrued interest to the date of redemption + the european community 's consumer price index rose a provisional N N in september from august and was up N N from september N according to <unk> the ec 's statistical agency + the <unk> rise in the index was the largest since april <unk> said + efforts by the hong kong futures exchange to introduce a new interest-rate futures contract continue to hit <unk> despite the support the proposed instrument enjoys in the colony 's financial community + hong kong financial institutions have been waiting for interest-rate futures for a long time + the contract was first proposed more than two years ago but shortly afterward the colony 's markets were hit hard by the october N global stock crash + the subsequent drive to reform hong kong 's markets also has <unk> the interest-rate futures contract + the securities and futures commission a government <unk> set up after the N crash to try to restore confidence and order to hong kong 's markets had been expected to give the contract conditional approval last week + but regulators this week said <unk> officials still have a way to go before they answer all the remaining detailed questions about the contract + the exchange had forecast that the contract would begin trading by december + but securities regulators now say privately that it is n't likely to start until the first quarter of next year + analysts and financial officials in the british colony consider the new contract essential to the revival of the hong kong futures exchange which has never fully recovered from the october N crash + many believe that without a healthy futures exchange hong kong 's aspirations to be recognized as an international financial center will suffer + in addition local banks say the new contract is important in helping them offset their hong <unk> exposure + the contract will be based on the three-month hong kong interbank offered rate or <unk> + it is almost a carbon copy of the chicago mercantile exchange 's eurodollar contract which is based on the three-month eurodollar rate the rate paid on <unk> deposits in london banks + if the contract is as successful as some expect it may do much to restore confidence in futures trading in hong kong + the contract is definitely important to the exchange says robert <unk> executive director of the securities and futures commission + two years ago the futures exchange was the envy of other would-be futures centers + after only N months its main contract based on the hang seng index had grown to be the second-largest <unk> contract in the world + a futures contract is an agreement to buy or sell a commodity or financial instrument at a set price on a specified date + in the case of stock-index and interest-rate futures the instruments are given an underlying cash value and are settled in cash + but in the week following the N stock crash the exchange <unk> on collapse and the stock and futures markets in hong kong were closed for four days + only a <unk> bailout kept the crisis from <unk> the exchange + trading in hang seng index futures remains <unk> by the experience + volume for the entire month of september totaled only N contracts compared with a daily average of N in the month before the N crash + despite the thin trading and after two painful years of restructuring the futures market has shown itself to be <unk> in two recent tests + while asian markets struggled to cope with the uncertainty caused by the oct. N plunge in new york stock prices futures trading in hong kong was relatively heavy and went smoothly + that was also the case in the days following the june N massacre in beijing which caused a sharp drop in hong kong stock prices + there was no problem at all says douglas ford chief executive officer of the futures exchange + most important to the contract 's success is the commitment of hong kong 's big financial institutions especially the two leaders <unk> & shanghai banking corp. and the local subsidiary of britain 's standard chartered bank plc + the two big banks were instrumental in designing the new contract + if those two banks are there then the balance of the banking institutions will be there says mr. <unk> the securities and futures commission official + colony banks have a major stake in how interest rates move because of their enormous hong <unk> exposure + even though the currency is pegged to the u.s. dollar with a fixed exchange rate of hk$ N to the american currency the u.s. and hong kong economies do n't always move in lock step making it difficult to predict where interest rates in the colony will go + in early N when the three-month eurodollar rate was between N N and N N the three-month <unk> rate was as low as N N + just a few months ago the three-month eurodollar rate was around N N while three-month <unk> hit highs above N N + the <unk> contract <unk> quite a bit of the problem of interest-rate risk in the interbank market says eric <unk> a director of james capel far east ltd. the hong kong arm of the british brokerage firm + despite the initial support expected trading in the contract is likely to start slowly + the <unk> from the N crash have n't yet <unk> and not all claims against the exchange <unk> by those who bet the hang seng index would fall have been settled + companies and financial institutions familiar with hong kong remain wary of trading in its futures market + and mr. <unk> <unk> that there may be limits on how much the contract can grow because the hong kong dollar is n't a widely traded currency + he says the contract will be considered a success if it starts trading N to N lots a day + exchange officials also point out that <unk> futures were designed for institutions and corporations not for the type of small individual investors who were very active in hang seng index futures and defaulted in the N crash + mr. <unk> says the low margin required for trading futures attracted a lot of small investors before the N crash who did n't realize that their risk was virtually <unk> + you 're not going to get your taxi drivers and <unk> and all that says <unk> nicholas a director for securities company elders bullion & futures ltd + that should help to <unk> confidence mr. <unk> says + but many bankers remain nervous especially as the start-up of the contract continues to be delayed + two of japan 's largest paper manufacturers <unk> paper co. and <unk> paper co. posted unconsolidated pretax profit gains from a year earlier for the first half ended sept. N on continuing robust domestic demand for paper products + <unk> paper the nation 's largest in terms of sales said its pretax profit rose N N to N billion yen us$ N million from N billion yen + sales jumped N N to N billion yen from N billion yen + net income increased N N to N billion yen from N billion yen + per-share net rose to N yen from N yen + <unk> paper 's sales strength was evident in overall paper products sales including <unk> printing and <unk> papers which rose to N billion yen in the first half from N billion yen a year earlier + pulp processed and <unk> paper sales also surged + for the full fiscal year ending next march <unk> predicted that total sales of N billion yen up from N billion yen in the previous fiscal year + pretax profit is seen at N billion yen down from N billion yen while net income is estimated at N billion yen up from N billion yen + the company did n't provide an explanation for the softer pretax profit performance and officials could n't be reached for comment + <unk> paper said its pretax profit rose N N to N billion yen from N billion yen + sales rose N N to N billion yen from N billion yen + net income surged N N to N billion yen from N billion yen + per-share net rose to N yen from N yen + general paper product sales including <unk> and other papers accounting for the bulk of sales rose to N billion yen from N billion yen + <unk> paper predicted that for the full fiscal year ending next march N sales will total N billion yen up from N billion yen + pretax profit was estimated at N billion yen down from N billion yen while net income was estimated at N billion yen up from N billion yen + unocal corp. 's decision to put its norwegian oil and gas interests up for sale earlier this week is another step in the company 's strategic review of its properties and shows that few of them are <unk> <unk> + the company declined to estimate the value of the norwegian holding + but eugene l. <unk> an analyst at dean witter reynolds inc. forecast that the sale will bring in $ N million or substantially more + the proposed transaction is the latest in a <unk> of assets by the los angeles-based oil company that has included the $ N million sale of its headquarters property and the pending sale of half of its chicago refinery and related marketing operations to <unk> de venezuela s.a + mr. <unk> said he <unk> particular importance to the proposed sale because it suggests that the company is willing to sell oil and gas assets that are n't part of its major strategic strengths + unocal said it expects to complete the sale of its unocal <unk> <unk> unit by next march or april + in addition to an N N stake in the <unk> offshore field the norwegian unit has interests ranging from N N to N N in three other norwegian oil and gas production licenses + in N unocal sold a N N stake in the <unk> field to deutsche <unk> g.m.b h. a west german oil company for an undisclosed amount + in N it sold a N N stake in the <unk> field to the swedish national oil company resulting in a $ N million after-tax gain + however those sales were early in the field 's history before production equipment was installed + the field is currently being developed and is slated to start production by the end of the year + it 's expected to produce about N barrels per day + a company spokesman said the <unk> field 's gross reserves were estimated in N at N million barrels + however he added that that estimate made before extensive development drilling currently is being <unk> + the spokesman said unocal has had considerable interest from prospective buyers + the company has retained j. henry schroder <unk> & co. as financial adviser and agent for the sale + france 's unemployment rate was steady at a seasonally adjusted N N in september the social affairs ministry said + in september the number of jobless rose N N from the previous month to N million on a seasonally adjusted basis + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + tenneco credit corp. $ N million of N N N senior notes due nov. N N priced at N to yield N N + the noncallable issue was priced at a spread of N basis points above the treasury 's seven-year note + rated <unk> by moody 's investors service inc. and <unk> by standard & poor 's corp. the issue will be sold through underwriters led by merrill lynch capital markets + tenneco credit is a unit of tenneco inc + <unk> health system <unk> issue of $ N million of revenue bonds tentatively priced through a morgan stanley & co. group + the offering includes a new issue of $ N million of tampa fla. series N revenue bonds for st. joseph 's hospital inc. due N N and N + the bonds are tentatively priced to yield from N N in N to N N in N + the other two portions of the deal are <unk> of outstanding debt rather than new issues + the bonds are rated single-a by moody 's and <unk> by s&p according to the lead underwriter + city and county of <unk> $ N million of general obligation bonds N series b due N through a bear stearns & co. group + the bonds rated double-a by moody 's and s&p were priced to yield from N N in N to N N in N and N + federal national mortgage association $ N million of remic mortgage securities being offered in N classes by shearson lehman hutton inc + the offering series N backed by fannie mae N N securities brings fannie mae 's N remic issuance to $ N billion and its total remic volume to $ N billion since the program began in april N + pricing terms were n't available + <unk> electric power co japan $ N million of N N N bonds due nov. N N priced at N N to yield N N N less full fees via yamaichi international europe ltd + fees N N + toshiba corp japan $ N billion of bonds due nov. N N with equity-purchase warrants indicating a N N N coupon at par via nomura international ltd + each $ N bond carries a warrant exercisable dec. N N through nov. N N to buy company shares at an expected premium of N N N to the closing share price when terms are fixed nov. N + credit lyonnais australia ltd french parent N million australian dollars of N N N bonds due nov. N N priced at N to yield N N less full fees via <unk> bank ltd + guarantee by credit lyonnais + fees N N + world bank agency # N million of N N N bonds due aug. N N offered at N to yield N N via baring brothers & co + tap on outstanding # N million issue + also issued were N billion yen of bonds due dec. N N priced at N N with coupon paid in australian dollars via <unk> international ltd + interest during first year paid <unk> at N N + thereafter interest paid annually at N N + the world bank also offered N million swiss francs of N N bonds due nov. N N priced at N N to yield N N via credit suisse + option by <unk> to increase issue amount to N million francs + <unk> corp japan N million swiss francs of privately placed convertible notes due march N N with fixed N N coupon at par via nomura bank switzerland + put march N N at a fixed N N to yield N N + each N swiss franc note convertible dec. N N through march N N at a N N premium over closing share price nov. N when terms are fixed + nippon air <unk> co japan N million swiss francs of privately placed convertible notes due march N N with fixed N N coupon at par via yamaichi bank switzerland + put march N N at fixed N N to yield N N + each N swiss franc note convertible nov. N N through march N N at a N N premium over closing share price nov. N when terms are fixed + credit suisse finance <unk> ltd swiss parent N billion lire of N N N bonds due june N N priced at N to yield N N less full fees via <unk> <unk> del <unk> + guarantee by credit suisse + fees N N + maryland national bank $ N million of securities backed by home-equity lines of credit through merrill lynch capital markets + the bank is a subsidiary of <unk> <unk> financial inc + the securities were priced to float monthly at N basis points above the 30-day commercial paper rate + the issue formally titled <unk> home equity loan asset backed certificates series N will represent interest in a trust fund of home equity revolving credit line loans <unk> by the retail finance division of maryland national bank and secured primarily by second <unk> of trust or second mortgages on single to <unk> residential properties + the securities are rated triple-a by moody 's and duff & phelps inc + they are expected to have an average life of N years + maryland national bank 's retail finance division will continue to service the loans + first national bank of chicago will act as trustee and the transaction will be supported by an N N letter of credit issued by dai-ichi kangyo bank ltd. chicago branch + province of <unk> <unk> $ N million of N N N debentures due nov. N N priced at N to yield N N + the noncallable issue which can be put back to the province in N was priced at a spread of N basis points above the treasury 's 10-year note + rated single-a-2 by moody 's and <unk> by s&p the issue will be sold through underwriters led by merrill lynch capital markets + bausch & <unk> inc. said it plans to introduce next year a new line of <unk> containing <unk> the <unk> that protects against damage from <unk> <unk> + the optical products company has signed a licensing agreement with <unk> technologies inc. a closely held firm in san antonio texas which has developed a method to <unk> the synthetic <unk> into plastic lenses + terms were n't disclosed + security pacific corp. has set its sights on buying its second bank holding company this year + security said it signed a letter of intent to purchase la jolla bancorp agreeing to pay $ N of its own stock for each share of la jolla + based on the current number of la jolla shares that gives the transaction a value of $ N million + la jolla is the parent company of la jolla bank & trust co. which has N branches in san diego county + as of sept. N the bank had assets of $ N million and deposits of $ N million security pacific said + earlier this month security pacific which is among the N largest bank holding companies in the u.s. completed the acquisition of san <unk> southwest bancorp + south africa 's current account surplus swelled to a seasonally adjusted annual rate of between five billion and six billion rand $ N billion and $ N billion in the third quarter reserve bank governor chris <unk> said + the surplus was two billion rand in the second quarter and N billion rand in the first quarter + he said this improvement means it is still possible to reach the targeted current account surplus of four billion rand for N + <unk> corp. said its board approved the repurchase of as many as N common shares when market conditions are suitable + the maker of telecommunications management systems had N shares outstanding as of sept. N + in over-the-counter trading yesterday <unk> closed at $ N up N cents + service corp. international said it expects to report net income of N cents a share for the third quarter + the company said it expects to release third-quarter results in <unk> + the <unk> home and cemetery operator changed from a fiscal year to a calendar year in december + in the comparable year-ago quarter the second quarter ended oct. N service corp. had a loss of about $ N million or N cents a share on revenue of $ N million + results for that quarter included a $ N million or N cents a share write-down associated with the consolidation of a facility + your sept. N criticism of credit-card foreign-exchange charges is unwarranted + i have just returned from france and the net exchange rate charged on my visa account was more favorable than i obtained for <unk> 's checks in any of the several banks where i converted them + vincent <unk> <unk> wash + the state-controlled french metals group <unk> s.a. said it has signed a preliminary accord to sell its paris headquarters to <unk> <unk> <unk> and <unk> <unk> for N billion francs $ N million + the sale which <unk> had been eager to make for several months is still subject to certain unspecified conditions and is expected to be completed during the first quarter of N the group + hong kong 's main measure of consumer prices rose N N in september from a year earlier the government said + the consumer price index a which measures price changes for the N N of urban households that spend between N hong kong dollars us$ N and hk$ N a month edged up N N in september from august + index b which monitors price changes for the N N of urban households that spend between hk$ N and hk$ N a month rose N N last month from a year earlier and was up N N from the preceding month + september 's hang seng consumer price index which measures price changes for the N N of urban households spending hk$ N and hk$ N a month was up N N from a year ago and up N N from august + the main factors for the september increase from the previous month were higher prices for services food and housing + prices fell marginally for fuel and electricity + west german and french authorities have cleared dresdner bank ag 's takeover of a majority stake in banque <unk> de placement <unk> dresdner bank said + the approval which had been expected permits west germany 's second-largest bank to acquire shares of the french investment bank + in a first step dresdner bank will buy N N of <unk> for N french francs $ N a share or N million francs $ N million + dresdner bank said it will also buy all shares tendered by shareholders on the paris stock exchange at the same price from today through nov. N + in addition the bank has an option to buy a N N stake in <unk> from societe generale after jan. N N at N francs a share + furukawa electric co. one of japan 's leading electric wire and cable manufacturers said unconsolidated pretax profit in the fiscal first half ended sept. N fell N N to N billion yen $ N million from N billion yen a year earlier + sales increased N N to N billion yen from N billion yen + net fell N N to N billion yen from N billion yen + <unk> net fell to N yen from N yen + the growing sales sustained by domestic demand failed to counter rising material metal costs and declining profitability in overseas construction furukawa said + rolled copper product sales were major <unk> to overall sales growth + sales by category rose N N to N billion yen reflecting increased production in automobile <unk> and electric machine industries which are major users of wire and cable products + sales for electric wires and <unk> rose N N to N billion yen + west germany 's cost-of-living index rose a preliminary N N in october from september and was up N N from a year earlier the federal statistics office in <unk> said + the increase follows a monthly rise of N N in september from august + preliminary cost-of-living data for the current month are calculated based on inflation data from the four largest west german states <unk> north <unk> <unk> and <unk> + the philippine government awarded finland 's <unk> oy the contract to upgrade the facilities of philippine associated <unk> & refining corp. according to documents from national development corp. one of philippine company 's owners + the project costs $ N million and is intended to boost the company 's production capacity by N N to N metric tons of copper <unk> a year + <unk> is a mining trading and construction concern + september sales at major japanese retail stores rose N N from a year earlier to N trillion yen $ N billion marking the <unk> monthly increase the ministry of international trade and industry announced + according to the ministry retail sales at major department stores were up N N to N billion yen while sales at supermarkets rose N N to N billion yen + september 's growth followed a N N rise in july and an N N increase in august showing continued expansion at high <unk> levels + a ministry official said the growth leads to the conclusion the adverse effects of a consumption tax introduced in april have diminished + shell canada ltd. said it plans to build a lubricants <unk> and packaging plant at <unk> ontario with start-up scheduled for N + a spokesman said the plant which will replace older <unk> and <unk> manufacturing plants in montreal and toronto will cost about N million canadian dollars us$ N million to build + <unk> is about N miles east of toronto + shell canada an oil and gas producer and marketer is a unit of royal <unk> group an <unk> concern + when the going gets tough it 's tough to trade stocks in continental europe + that 's the troubling conclusion reached by many international investors and money managers angry at the <unk> on continental stock exchanges during last week 's global market turbulence + they say the recent market volatility has underscored the <unk> of the way many european exchanges trade stocks + the weaknesses of continental exchanges are driving some fund managers to switch business to stocks traded on london 's stock exchange which quotes firm trading prices for about N blue-chip issues from N major countries + i 'm not saying london covered itself in glory but the events of the past week have certainly exposed europe 's weaknesses says stewart <unk> a director of scottish amicable investment managers in <unk> scotland which manages about # N billion $ N billion in institutional money + he says the problems on european exchanges included <unk> <unk> delayed execution of buy and sell orders and trading <unk> + the events strengthen london 's hand in becoming the center for trading european stocks mr. <unk> says + unable to unload a large block of a french blue-chip company 's shares in paris for two days last week a frustrated scottish amicable fund manager finally <unk> down her phone in <unk> and called james capel & co. a london brokerage firm + the firm did the trade in seconds on the london stock exchange 's <unk> <unk> system + on so-called manic monday oct. N stock prices plunged across europe and trading problems erupted + london had some problems too + the london exchange 's electronic <unk> system provided only <unk> or <unk> prices for about N minutes on manic monday + some dealers say other traders were n't picking up their phones + but london 's problems were nothing compared with the continent 's + in brussels which recently spent millions of dollars on a <unk> trading system <unk> traders watched <unk> as a software failure before opening on manic monday prevented trading for two days + for N hours no one had any idea precisely how much his securities were worth + by wednesday frustrated belgian brokers reopened the market by using the <unk> method of <unk> stocks with <unk> on a <unk> + the belgian computer system finally was repaired and <unk> on tuesday of this week with the aid of toronto stock exchange officials who developed the system + in frankfurt which only has a <unk> daily <unk> session even in the best of times stocks did n't open for the first N minutes because of order imbalances that brokers blame on a wave of sell orders from small investors + as banks processed <unk> <unk> of sell orders the crush led to manic monday 's worst decline german stocks ended down N N + exchange officials extended trading hours N minutes on monday and N minutes on tuesday to clear up order backlogs + in france more than half the top N blue-chip stocks including such giants as bsn and <unk> <unk> did n't open until wall street rallied late in the european trading day traders say + the rally transformed some big sell orders into big buy orders solving an <unk> problem + but by that time many big institutions had switched business to london + belgium was closed for two days france closed for a couple of hours germany was stuck + it was a nightmare says susan noble an investment manager at robert fleming holdings ltd. 's international investment management unit in london + it 's very worrying that these markets ca n't cope + on manic monday the volume of german shares traded in london more than tripled to N million and the volume of french shares rose N N + by comparison german domestic stock volume in frankfurt only doubled that day + the switch to the london market during such <unk> times is significant + for one thing the size of the affected market is enormous the european stock markets account for some N N of global stock market capitalization with an estimated value of $ N trillion according to morgan stanley capital international + the continental markets alone contribute about N N of estimated world market capitalization of $ N trillion + though the widely traded shares that are quoted in london account for only a small portion of those totals they still are the most closely watched stocks and are often viewed as a barometer for the local markets generally + the switch to london <unk> the fact that despite the economic restructuring associated with european community efforts to develop a single market by N european stock trading remains a highly <unk> and very <unk> activity + against this backdrop one thing that does n't seem likely to result from N is a single european stock market + rather there increasingly is a group of international brokerage and trading firms that operate in most european financial centers including european giants such as barclays bank plc and deutsche bank as well as merrill lynch & co. and shearson lehman hutton inc. of the u.s. and japan 's nomura securities co + these firms which often have acquired a local brokerage firm are calling the shots when it comes to deciding in which market to <unk> a trade + and senior officials of two u.s. securities houses say they switched trades in european stocks to the london market last week when they could n't <unk> positions on the continent + meantime brokers on the continent are worried too mostly by the potential loss of business + i would be much <unk> if this volume in german stocks were in frankfurt rather than london says <unk> <unk> head of international equity sales at dresdner bank in frankfurt + he acknowledges that spreads were too wide and volumes too light in the extreme conditions on manic monday + already the germans appear to be acting at a special meeting on the day of the decline directors of the frankfurt stock exchange voted to extend their trading hours although they have n't decided when or by how much + a frankfurt exchange official acknowledging the brokers ' <unk> says the market still feels it <unk> ok during this crash + the dutch who had some trading problems because of insufficient computer capacity say new equipment to solve the problems ought to be installed within a month + says a spokeswoman for the brussels <unk> nobody around here will tell you they are happy the system did n't work + but it 's just one of those things that happened + investors can be assured now that this kind of problem can never occur again + but for others the <unk> echo the promises made after the N stock crash when similar problems led many markets to develop the new systems that performed so badly last week + they all said they invested huge amounts of money + but they either did n't buy the right machines or they wasted it says fleming 's ms. noble + canadian steel production totaled N metric tons in the week ended oct. N a N N increase from N tons the previous week but a N N decline from N tons a year earlier statistics canada said + the federal agency said that in the year through oct. N production totaled N tons up N N from N tons + trinova corp. said it will resume buying back as many as three million of its common shares under a program announced two years ago + trinova which had N million common shares outstanding sept. N had <unk> N shares since october N before this latest announcement + the company said it is n't making a commitment to purchase a specific number of shares + in new york stock exchange composite trading yesterday trinova closed at $ N up N cents + <unk> inc. and <unk> inc. said they plan a joint project to develop biological products to control such plant diseases as <unk> a potent <unk> agent + under the plan the companies will use <unk> 's <unk> technology to <unk> <unk> such as <unk> <unk> a bacterium to enhance their biological activity against plant diseases + <unk> an agricultural biotechnology concern said initial work will concentrate on a <unk> strain of <unk> <unk> which has shown promise for controlling <unk> + the strain was discovered by <unk> & co. and licensed to <unk> a unit of uniroyal chemical co + <unk> is released by <unk> during grain and seed storage + the recent appearance of <unk> in such foods as corn and <unk> butter has sparked public concern and consumer scrutiny of food handling and storage procedures + european community employers fear that the ec commission 's plans for a charter of fundamental social rights is a danger to industrial competitiveness + we do n't want brussels deciding conditions for workers unless they are necessary and useful said <unk> <unk> secretary general of the employers ' confederation <unk> + <unk> an <unk> for the union of industrial and employers ' <unk> of europe fears that the charter will force ec countries to adopt a single pattern in labor relations + workers and management mr. <unk> said would lose the flexibility and diversity that has so far allowed them to <unk> to local conditions and <unk> + the british government also strongly opposes the charter in its current form + it argues as does <unk> that labor relations are best left to be regulated at the national level + france will propose a slightly <unk> version of the charter to be discussed by ec <unk> ministers on monday officials said + but the cosmetic changes are n't expected to win over britain + we still have serious differences with the text a british official said because it provides for a regulation of the labor market + mr. <unk> said the charter would put poorer ec countries such as spain greece and portugal at a disadvantage + it would force these countries to introduce minimum standards for pay and working hours and provide for collective bargaining and worker participation in major corporate decisions + this he warned would prevent these countries from <unk> the difference with their richer ec <unk> + indeed lower wages in greece they are a third of the ec average are n't enough to offset higher transport costs and lower productivity in the southern countries + increasing labor costs mr. <unk> argued would only put the countries at a further disadvantage in competing in the <unk> ec market planned for after N + but the <unk> official said that producing a charter acceptable to both britain and european industry is n't an <unk> goal + the charter would just have to be restricted to a list of workers ' fundamental rights without seeking to impose any <unk> + a key provision in the current version of the charter would give the commission a mandate to produce an action program detailing on what points ec member states would be required to comply with the goals set out in the charter + this provision lies at the heart of the british and <unk> fears of social engineering by the commission + one possible political solution an ec official said would be for the commission to present the action program in late november before the adoption of the charter at a summit of ec governments on dec. N and N + this would leave britain free to adopt the charter after having <unk> the action program + the charter was approved by the ec commission on sept. N + france 's socialist government which currently holds the council 's <unk> presidency is committed to having the charter adopted by all N ec states before the end of N the <unk> of the french revolution and its universal declaration of human rights + bruno <unk> chairman of <unk> brothers lumber <unk> pa. was named a director of this bank-holding company expanding the board to N members + sam ramirez and his men are late + they pile out of their truck and <unk> begin <unk> together steel pipes linking a giant storage tank to the <unk> a <unk> <unk> oil well two miles deep + if they finish today the <unk> can pump tomorrow + one <unk> hanging by his hands from a <unk> <unk> his weight on a <unk> <unk> to loosen a stuck <unk> + we 've been putting in long hours mr. ramirez says <unk> weeks and <unk> days for the last two months + a year ago when almost nothing was happening amid these <unk> dunes you 'd spend two days working and two days in the yard he recalls + after a three-year nightmare of uncertain oil prices <unk> budget cuts and sweeping layoffs fear is finally leaving the oil patch + independent <unk> are <unk> sinking <unk> into the earth 's <unk> again + some in big oil are easing the grip on their <unk> + investment capital is creeping back and oil properties are <unk> more + <unk> prices are even <unk> up + what happened + in <unk> terms stability has quietly settled into international oil markets + mideast politics have <unk> down and the <unk> within the organization of petroleum exporting countries seems under control for now + the fundamentals of supply and demand once again are setting oil prices says victor <unk> an arthur <unk> & co. oil expert + after years of wild swings oil prices over the last N months have settled at around $ N to $ N a barrel + that is n't the $ N that <unk> producers a decade ago or the $ N that pleased users a year ago + but it is high enough to <unk> the search for future supplies low enough to promote consumption and most important steady enough for both producers and users to believe in + not that oil suddenly is a sure thing again + the current <unk> is fragile and depends on steady strong demand and continued relative harmony within opec producer of more than N N of the <unk> world 's crude + a recession or new opec <unk> could put oil markets right back in the soup + also the new <unk> are <unk> and some question their extent + drilling activity is still far below eight years ago there 's no hiring surge and some companies continue to shrink + with all this even the most wary oil men agree something has changed + it does n't appear to be getting worse + that in itself has got to cause people to feel a little more optimistic says glenn cox the president of phillips petroleum co + though modest the change reaches beyond the oil patch too + the same roller-coaster prices that halted u.s. oil exploration and drove many veteran oil men and companies out of the business also played havoc with the nation 's inflation rate the trade deficit and oil users ' corporate and personal budgets + now at least some <unk> has returned for everyone from economists to <unk> + corporate planners can plan again + management does n't want surprises notes jack <unk> who as <unk> director at american airlines buys some N billion gallons of jet fuel a year + prices had been so unstable that two years ago mr. <unk> gave up on long-term forecasts + and consumers should be comfortable adds w. <unk> moore u.s. deputy secretary of energy + i do n't see anything on the horizon that could lead to a <unk> rise in the price + the catalyst for all this has been opec + about a year ago it ended an <unk> <unk> internal production war that had put prices on a roller <unk> and pitched oil towns from houston to <unk> into recession + saudi arabia opec 's <unk> abandoned a policy of flooding the market to punish <unk> + about the same time the <unk> war which was <unk> oil markets ended + in addition global petroleum demand has been climbing + it is projected to keep growing by a million barrels a day or up to N N annually for years to come + for opec that 's ideal + the resulting firm prices and stability will allow both producers and consumers to plan <unk> says saudi <unk> oil minister <unk> <unk> + opec <unk> <unk> explains consumers offer security of markets while opec provides security of supply + this is an <unk> time to find mutual ways to prevent price shocks from happening again he says + to promote this balance opec now is finally <unk> a <unk> internal problem + at its november meeting it will try to revise its quotas to satisfy persian gulf members that can produce far more oil than their <unk> + being held well below capacity greatly <unk> them and has led to widespread cheating + opec has repeatedly raised its <unk> production ceiling to <unk> some of that unauthorized output + oil ministers now hope to solve the issue for good through an iranian proposal that gives a larger share of output to countries with surplus capacity and reduces the shares of those that ca n't produce more anyway + but if they walk out without any effort to resolve their problem production could increase to N million or N million barrels a day making for a very troublesome first quarter warns <unk> <unk> a consultant and former <unk> opec delegate + that would send prices <unk> from what some <unk> u.s. oil executives still regard as too low a level + patrick <unk> early president of amoco corp. 's <unk> unit says that despite recent stability he plans continued tightening of costs and exploration spending + the view of some others in big oil he maintains is very much similar to amoco 's outlook + just this week mobil corp. disclosed new cutbacks in its domestic exploration and production operations + out here on the <unk> plains of new mexico however the mood is more upbeat trucks <unk> along the dusty roads and <unk> men in hard hats sweat and <unk> through the afternoon sun + santa fe energy co. a unit of santa fe southern pacific co. bought from amoco the rights that allowed it to drill the <unk> + a mile and a half away looms the <unk> rig of the <unk> due to be pumping by december + talk is that everybody is going to drill more wells says <unk> <unk> <unk> + santa fe aims to drill about N wells in this area in N and double that next year + it is more aggressive than most but it is n't the only company with a new attitude as it found when it went looking for a partner for the <unk> + we went to six companies over two days pitching the prospect says tim parker a santa fe exploration manager + five were interested + mitchell energy & development corp. became the partner <unk> up more than half of the $ N in drilling and start-up costs + mitchell will get a <unk> in the oil + a kind of <unk> mentality had been <unk> activity says don <unk> mitchell 's oil exploration chief + now everybody is a lot more optimistic + one attraction for oil operators here and in other fields is the <unk> cost of drilling and equipment reflecting service companies ' <unk> for work + <unk> oil co. a small texas independent is currently drilling two wells itself and putting money into three others + one of its wells in southwestern oklahoma is a rank <unk> a risky well where oil previously has n't been found + at this price $ N plus or minus and with costs being significantly less than they were several years ago the economics are pretty good says george <unk> head of the company + if you know you 've got stability in price you can do things you would n't do with the volatility of the past few years + the activity is enough to move some <unk> prices back up a little + some <unk> prices have risen N N in the past month + in the gulf of mexico a boat to deliver supplies to offshore <unk> now costs around $ N a day up nearly N N since june + some service <unk> recently were auctioned for about $ N million each up from less than $ N million two years ago + at the bottom of the slump <unk> inc. was discounting N N on an electronic evaluation of a well now it discounts about N N <unk> say + still there is money to be made + most oil companies when they set exploration and production budgets for this year forecast revenue of $ N for each barrel of crude produced + prices have averaged more than $ N a barrel higher than that not a <unk> but at least a <unk> bonus for them + so according to a dun & bradstreet corp. survey companies that had been refusing to spend even their very conservative budgets may loosen up before year end + it says N N of those surveyed report that N exploration spending will exceed N 's + funds for drilling may inch up more next year if oil prices stay stable + texaco thinking in terms of $ <unk> oil for N may raise spending especially for <unk> prospects an official says + outside investors scarce since <unk> are <unk> back + although it 's still difficult to raise money for a pure <unk> program says william thomas a texas commerce bank official in houston institutions are starting to see there are cycles to these things and this one is beginning to turn + wall street generally likes the industry again + the appetite for <unk> stocks has been especially strong although some got hit yesterday when shearson lehman hutton cut its short-term investment ratings on them + contractors such as parker drilling co. are raising cash again through stock offerings and for the first time in years two <unk> companies recently went public + they are grace energy corp. of dallas and marine drilling co. of houston + most oil companies are still reluctant to add to the office and professional staffs they slashed so deeply + but a few new spots are opening + arthur <unk> the accounting firm has increased its energy staff N N in a year + out in the oil fields if activity picks up much more shortages could appear because so many <unk> <unk> and others left after the crash + already it 's hard to get people + they 're so busy says one santa fe drilling <unk> here + for most field workers it 's about time + mr. ramirez who arrived late at the <unk> with his crew because he had started early in the morning setting up tanks at another site just got the first raise he can remember in eight years to $ N an hour from $ N + norman young a <unk> at the <unk> well has worked all but about nine days of this year + last year i was off a straight month then one time for two to three weeks and another two to three weeks he says + <unk> <unk> who sells <unk> equipment for davis tool co. is also busy + a native of the area he is back now after riding the <unk> boom to the top then surviving the <unk> running an oklahoma city convenience store + first year i came back there was n't any work he says + i think it 's on the way back now + but it wo n't be a boom again + no major <unk> no major setbacks he predicts + business has been good enough that he just took a <unk> weekend trip to the mountain area of <unk> something i have n't done in years + the figures confirm that there certainly is n't any drilling boom + only N wells including N dry <unk> were <unk> for oil and natural gas in the u.s. in the first nine months of the year down N N from the like N period + but that was off less than at midyear when <unk> lagged by N N + and the number of <unk> active in the u.s. is <unk> up + according to baker hughes inc. N <unk> <unk> were at work in the u.s. last week up from the year-ago count of N + in N before the <unk> the rig count was above N + global <unk> use shows a similar upward trend + some equipment going to work is almost new + grace energy just two weeks ago <unk> a rig here N miles from <unk> <unk> to drill the <unk> well a <unk> $ <unk> natural gas well + the rig was built around N but has <unk> only two wells the last in N + until now it had sat idle + for <unk> <unk> owner and a cook at the <unk> <unk> <unk> a <unk> building in <unk> all this has made for a very good year + after N a.m. or so we have them standing and waiting she says as she <unk> out orders for <unk> and the daily special <unk> <unk> beef <unk> and <unk> <unk> <unk> on whole wheat potato <unk> <unk> <unk> and <unk> plus coffee or <unk> tea + price $ N + mike <unk> a <unk> is even making it in his new career as an entrepreneur + he started arrow <unk> inc. a year ago with a loan from a friend since repaid and now employs N + he got three trucks and a <unk> cheap + i want to add one more truck mr. <unk> says + i sense that it 's going to continue to grow + that 's the word + the word is out + eight people including a supervisor of security pacific national bank 's central vault were arrested in an investigation of an alleged drug <unk> operation + the u.s. attorney 's office filed a criminal complaint against six bank employees charging them with conspiracy in the scheme which apparently was capable of handling millions of dollars a week by <unk> cash through <unk> bank accounts + two other men also were charged with participating in the operation + the <unk> capped a <unk> investigation by the internal revenue service the u.s. attorney 's office and a security pacific internal investigation team + walter s. fisher executive vice president and general <unk> of the bank 's parent security pacific corp. said no bank funds were at risk during the investigation + arrested were jose o. <unk> N years old of <unk> calif. the vault supervisor carlos o. <unk> N of la <unk> luis a. <unk> N of los angeles <unk> <unk> jr. N of baldwin park <unk> <unk> N of bell gardens and ana l. <unk> N of <unk> park + <unk> m. <unk> N of los angeles and <unk> n. madison N of <unk> were also charged with participating in the conspiracy + each defendant faces a possible sentence of N years in prison and $ N in fines + the defendants could n't immediately be reached for comment + s.a. brewing holdings ltd. began laying the <unk> to launch a rival offer for bond corp holdings ltd. 's australian brewing operations + such an offer could <unk> a plan by lion nathan ltd. of new zealand to acquire half the brewing interests + but it would probably increase the amount of cash that <unk> bond corp. would earn from the transaction + australia 's national companies and securities commission said it will allow s.a. brewing to acquire an option on as much as N N of bell resources ltd. a unit of bond corp. that is in the process of acquiring bond corp. 's brewing businesses for N billion australian dollars us$ N billion + s.a. brewing which is <unk> by elders <unk> ltd. australia 's largest brewer will make a takeover offer for all of bell resources if it exercises the option the corporate regulators said in a statement + bond corp. a brewing property media and resources concern controlled by financier alan bond is selling many of its assets to reduce an a$ N billion debt + contrary to what might be expected based on the headline on john r. dorfman 's recent money matters article pros hit <unk> right where it <unk> oct. N i was able to stand <unk> before my <unk> finance students and <unk> that the findings of your <unk> experiment on stock picking is completely consistent with what they have been taught in the classroom + in particular i do not find the fact that your group of pros ' monthly <unk> of four stocks <unk> the market in general to be <unk> with market efficiency + mr. dorfman states that an investor who invested $ N a year ago in the first four stocks selected by your pros and then sold those one month later purchasing the four new pro picks and repeated this process for the year would have accumulated $ N excluding account dividends taxes and commissions + in contrast an investor holding the dow jones portfolio over the year would have accumulated only $ N + accepted theories of asset pricing offer a perfectly legitimate explanation + accepted theories state that investors require higher returns on riskier investments + thus rather than seeing the excess returns to the <unk> portfolio as being <unk> i see those returns as simply <unk> for taking on added risk + i believe the risk for each individual stock selected by your pros is very large + if you asked me to select a stock with the highest expected return i would select a stock with the greatest amount of <unk> risk as i am sure your pros do + your hypothetical investor is simply being <unk> for taking on this added risk + moreover your hypothetical investor has <unk> the gains to be had in reducing risk by diversifying his portfolio + a <unk> portfolio is still exposed to a great deal of unnecessary risk + this means the returns can vary a great deal + mr. dorfman provides confirming evidence of this phenomenon when he reports that your staff of <unk> <unk> would have accumulated only $ N by <unk> <unk> four new stocks to be held in a portfolio each month + scott e. <unk> texas <unk> university <unk> texas your investment <unk> article misses the target + the fact that stock pickers have <unk> a <unk> selected portfolio in eight of N months has no bearing on the <unk> theory + what matters is that the stocks recommended by your pros tend to be substantially riskier than a diversified portfolio + for example your pickers ' recommendations for the coming month are on average N N riskier than holding the market portfolio according to value line 's beta estimates + james morgan 's pick for october <unk> is a substantial N N riskier than the market portfolio his <unk> <unk> <unk> pick is N N riskier + eric c. <unk> + peter w. <unk> president of <unk> university bethlehem pa. was elected a director of this maker of industrial <unk> parts and systems + his appointment <unk> the board to N members + california <unk> make travel agents jittery + being a travel agent used to be pretty glamorous + now it 's getting downright dangerous + in recent months more than N agencies have been robbed compared with only a handful all last year according to police and <unk> groups + most of the cases have been in california where one agent was <unk> and another was shot and killed + los angeles police say the thieves seem to be part of a crime network that knows how to convert blank tickets into real ones + already the stolen tickets have been used for flights all over the world + so far the thieves have stolen N blank tickets according to airline reporting corp. a ticket processing center + police say the <unk> are usually pulled off by two to five men who walk into the agencies near closing or lunch time when few employees are there + they looked like ordinary <unk> at first says <unk> <unk> owner of travel air service in monte <unk> calif. describing five men who entered his agency last june + but then he says they put two loaded <unk> to his temple and demanded he open the safe + when he initially refused he says they <unk> him in the back and made off with $ N and N blank tickets + they said they wanted to show me how serious they were he says + as word of the crime spree has spread many agents have started changing their <unk> policies + at el monte travel center in el monte calif. customers now can get in only through a <unk> and lock system + it 's hard to deal with clients this way in a service business says ralph <unk> conner owner of the agency which was robbed of N blank tickets and $ N last month + but we 're just too nervous + the <unk> also have set off a controversy involving the airlines + agents say airlines which track ticket numbers of all stolen tickets should be doing more to catch the thieves by <unk> the tickets when they 're used + they have the most sophisticated computers in the world says mr. <unk> + they ought to be able to do this + but airlines say it would be too expensive and cause too many delays if they started using computerized <unk> to check tickets at the gate + texans get reasonable car rental insurance + consumer advocates have long claimed that car rental companies charge too much for car rental insurance + now a new law in texas seems to be providing the proof + the law the first of its kind requires car rental companies in texas to charge only reasonable rates for <unk> waiver insurance + specifically the law says the rates must closely reflect what the company 's actual expenses have been to replace damaged cars + before the law went into effect last month car rental companies were charging as much as $ N a day for the waiver in texas + now they 're charging as little $ N a day + if they 're telling the truth now then they 've been charging N N more than what is reasonable says steve <unk> an assistant state attorney general in texas + a spokesman for hertz corp. acknowledges the waiver is n't a source of protection for consumers but a source of revenue + but hertz points out that at least it 's now charging only $ N a day in texas while some competitors are charging $ N + the state attorney general 's office is investigating rental car agencies charging <unk> higher prices + flight attendants lag before jets even land + if your flight <unk> seems a little <unk> it may be because he or she has been working N straight hours + a recent study for the federal aviation administration found that major airlines sometimes make flight attendants work N hours or more straight despite union contracts at some airlines limiting duty time to N hours + some flight attendants on charter planes are putting in <unk> work days the study found + this happens because the faa does n't have any rules on duty time for flight attendants by contrast it strictly restricts duty time for pilots and air traffic controllers usually to a maximum of N consecutive hours + as far as the faa is concerned says <unk> <unk> air safety director at the association of flight attendants flight attendants can work an <unk> number of hours + experts say such long hours for attendants pose a safety risk + for instance tired flight attendants might not react quickly enough during an emergency evacuation + at the end of their day they are <unk> says john <unk> president of the aviation safety institute a <unk> group in <unk> ohio + they have to work such long hours and then we expect them to be heroes if there 's an evacuation + in response to the study the faa says it is considering changing its policy or lack of it on flight attendants + the agency may not have much choice a congressional bill has been introduced that would force the agency to limit flight <unk> duty time to N hours on u.s. flights and N hours on international trips + odds and ends + golf has become the latest diversion for travelers stuck at some airports + <unk> golf games in which players hit golf balls into <unk> have been installed at airports in denver and pittsburgh + the average cost for breakfast at a decent hotel restaurant in new york is $ N according to corporate travel magazine + the cheapest among N cities surveyed was $ N in el paso texas + mark <unk> <unk> was named executive vice president and chief financial officer + mr. <unk> N years old formerly was <unk> and chief accounting officer at <unk> communications inc + management co. manages <unk> and produces markets and finances entertainment + why do you continually ignore the <unk> effects of indexing the basis of capital gains for inflation + why do you maintain the house-passed capital-gains plan is a temporary reduction when it is not + i think the reason is that you are confusing tax rates with tax payments + your sept. N page-one story on the house-passed capital-gains plan is a good example + you lead readers to believe that the house reduced the capital-gains tax for two years only + you virtually ignore the <unk> power of indexation which in many cases is more substantial than a lower rate + the monetary tax benefit of indexation for all gains in excess of inflation can be measured using the following equation tax rate times inflation rate times basis for the gain + depending on the size of the gain and the rate of inflation indexation can mean a lower tax payment than using the N N rate without indexation + but in any event and this is the important point tax payments on capital gains will be lower with indexation than under current law even though the tax rate is the same under both systems + as you can see the capital-gains reduction plan adopted by the house would not be temporary but permanent + i hope that you begin talking about the plan 's permanent and in my view most beneficial feature indexation + rep. robert k. <unk> r. calif washington + that the <unk> for the two-year reduction to N N is budgetary does not mean it is not in the public interest + the reduction <unk> the burden on portfolio changes and <unk> capital to seek more productive or more appropriate uses + but what is really significant is the indexation of capital gains after N + to argue that this is not likely to affect the economy in positive ways is contrary both to recent experience with capital-gains tax cuts and to common sense + a large part of the long-term appreciation of assets reflects inflation and the taxation of <unk> capital gains is <unk> + does the journal really believe that people ignore the prospect of having a substantial part of their capital confiscated when they decide whether to save or how to invest + under current law it is not financially rational to <unk> consumption + real <unk> returns from financial assets are on the order of N N or N N a year + the capital-gains tax reform is a step toward <unk> one of the <unk> structural weaknesses of the u.s. economy the closely connected <unk> of low savings rates weak capital formation and high capital costs + j. <unk> nielsen richmond va + <unk> <unk> N years old was elected president and chief operating officer of this designer and marketer of graphics video cable and other <unk> equipment + he succeeds alfred <unk> <unk> N who continues as chairman and chief executive officer + mr. <unk> formerly was group vice president of marketing and product planning for <unk> and president of the <unk> and video products division + <unk> grace & co. said it formed a new <unk> company by combining its <unk> and <unk> business with sierra chemical co. <unk> calif + grace a maker of specialty chemicals that already owned about N N of closely held sierra said it owns a N N stake in the new company + grace said it did n't invest any additional capital in the venture which will be known as <unk> <unk> products co + the business is expected to have sales of about $ N million in N grace said + the new company 's product lines will be aimed at <unk> <unk> and the lawn and garden industry + the financial accounting standards board said it will soon issue a rule requiring disclosure about the financial risk of certain financial instruments + but the chief <unk> body for accountants backed off one part of its original proposal made earlier this year that would have required a breakdown of certain <unk> items related to <unk> sheet instruments + the <unk> detail was opposed by many banks and thrifts that felt the cost of supplying such data was n't worth the value of the disclosures + under the initial proposal for example banks would have been required to disclose that portion of <unk> for loan losses that reflects specific letters of credit for which customers had defaulted + the final rule wo n't require such a breakdown of the <unk> for loan losses which appears on the balance sheet + the fasb rule will cover such financial instruments as interest rate swaps financial guarantees <unk> interest rate contracts loan contracts loan commitments and options written on <unk> held + it will require companies to <unk> out in more detail collateral <unk> and <unk> of credit risk for all financial instruments + the rule will require companies with financial instruments that have <unk> sheet risks to disclose data about the value and terms of the instruments any accounting loss that would occur if the outside party involved in the instrument failed to perform and the company 's policy for requiring collateral or other security for the instrument + scott miller an fasb project manager said that a final rule will be issued before year end + but he noted that the initial effective date of the earlier proposal had been delayed by six months + poughkeepsie savings bank said a plan to sell its south carolina branch offices to first citizens bank of columbia s.c. fell through + poughkeepsie also expects to post a one-time charge of $ N million resulting in a net loss for the third quarter + the charge represents a write-down of the goodwill associated with poughkeepsie 's investment in the banks it is trying to sell and its north carolina branches as well + the thrift announced the plan aug. N + among other reasons high fees regulators imposed on certain transfers of thrift deposits to commercial banks substantially altered the economics of the transaction for both parties poughkeepsie said + additionally the bank is increasing its loan-loss reserves for the third quarter by $ N million before taxes + in the year-earlier third quarter poughkeepsie savings had net income of $ N million or N cents a share + poughkeepsie said it is continuing to try to sell itself under a june agreement with a <unk> group + the bank also said its effort would continue past the nov. N deadline set in that agreement and that the litigation between the two sides might resume as a result + the thrift and the holders had suspended their lawsuits as part of the agreement + joe frank <unk> jr. was elected president and chief executive officer of this <unk> producer + joe frank <unk> who is currently chairman chief executive and treasurer will remain chairman + the current president and chief operating officer j. <unk> johnson was elected to the new position of vice chairman of the board + <unk> inc. was dropped from the consumer services industry group of the dow jones equity market index because the company split itself in a restructuring + it was succeeded in the group by <unk> industries inc + both moves are effective today + a potentially safer whooping cough vaccine made by novel genetic engineering techniques was described by a team of italian u.s. and japanese scientists + the team reported they managed to induce bacteria to produce a <unk> version of the <unk> produced by the bacterium that causes whooping cough + laboratory tests showed that <unk> versions of the <unk> are capable of <unk> an <unk> to whooping cough the researchers reported in this week 's issue of the journal science + the current vaccine for whooping cough or pertussis is part of the <unk> for <unk> pertussis <unk> shot given most <unk> and young children + the vaccine is effective in preventing a disease that still <unk> about N million children a year world-wide causing an estimated one million deaths + the vaccine however causes <unk> reactions that can be fatal + the reactions stem from the fact that the vaccine contains multiple copies of the whole <unk> pertussis bacterium which causes whooping cough + this bacterium produces a toxin that if used as a vaccine can induce <unk> to whooping cough + unfortunately the toxin is also <unk> + the <unk> scientific team said they had succeeded in getting bacteria to produce a <unk> version of the pertussis toxin which could be used as a safe vaccine + the researchers reported they have been able to <unk> the five genes that produced the toxin out of the pertussis bacterium + it turned out that although it took all five genes to produce the toxin only one was responsible for the toxin 's <unk> + ordinarily in genetic engineering each of these genes minus the one that caused the <unk> would have been transferred to another bacterium called e. <unk> which would then produce a <unk> version of the toxin + the researchers said they did this but the toxin did n't induce <unk> to whooping cough + the scientists then took the five toxin genes and triggered a <unk> in the one gene that caused <unk> + then using a new technique called <unk> <unk> for introducing genes into cells they transferred all five genes to bacteria closely related to the pertussis <unk> + these <unk> <unk> ordinarily do n't make the toxin + but the genes were accompanied by a piece of dna called a <unk> that turns the genes on + the new bacteria recipients of the genes began producing pertussis toxin which because of the <unk> <unk> gene was no longer toxic + experiments showed that the new <unk> toxin is capable of <unk> <unk> according to the researchers from the <unk> research center in <unk> italy the medical college of wisconsin in milwaukee and the japanese national institutes of health + carl e. <unk> president and chief executive officer of bank one dover has been named regional president a new post at the bank-holding company + mr. <unk> N years old will be responsible for the company 's N banks in the eastern region + dan j. <unk> N executive vice president of bank one dover was named president and chief executive of the dover bank succeeding mr. <unk> + no one was named to succeed mr. <unk> + at a time when foreign banks are pouring vast resources and personnel into west germany 's financial center the opening of a <unk> office on a frankfurt side street should n't attract much attention + unless of course it happens to be run by the rothschilds + after an <unk> absence from the <unk> of the family banking empire the return of the rothschild group to frankfurt was greeted by the glare of television lights <unk> reporters and a mayoral reception in town hall + like other foreign banks establishing a presence here the family describes its move as a calculated decision to set up a financial services <unk> in europe 's largest economy ahead of the integration of european community markets after N + yet the rothschilds do n't deny an emotional element to the decision + in N mayer <unk> rothschild founded <unk> <unk> rothschild & sons and later sent his four sons to london paris vienna and <unk> to begin the bank 's expansion during the early 19th century + the original bank in frankfurt closed in N after the death of <unk> carl von rothschild and the family 's banking activities focused on london and paris + <unk> <unk> de rothschild the family 's <unk> spokesman explains that by the end of the 19th century berlin had replaced frankfurt as germany 's financial center + yet the chief reason for the <unk> he says was rooted in a family tradition that would n't allow a bank to bear the rothschild name without a rothschild in its management + at the time we had only daughters explains the <unk> <unk> so we had to close the bank + much of the family 's <unk> remained + although its <unk> residence was destroyed by <unk> during world war ii the rothschilds ' place in frankfurt 's history is still recalled by the city park and a street bearing the rothschild name + the family 's long absence is <unk> + the family was in allied countries during both world war i and the long period of economic <unk> of the 1920s + during the third reich the rothschilds were a target of <unk> propaganda against jewish financiers + the <unk> pursued the rothschilds across europe as the <unk> grabbed countries <unk> the family 's property in the process + american journalist william l. <unk> in his book the rise and fall of the third reich wrote of how in vienna he had <unk> <unk> of <unk> <unk> men <unk> off silver <unk> paintings and other <unk> from the rothschild palace + in the immediate postwar years the rothschilds concentrated on rebuilding their other european operations delaying their return to frankfurt + for a member of the rothschild family the return to frankfurt is a very meaningful event although it might not mean as much to german banking as it means to us says <unk> david de rothschild <unk> 's younger <unk> and a partner in rothschild & cie banque in paris + indeed the competition is n't greatly concerned + it would be surprising if they did n't come to frankfurt in time for N and they bring an interesting tradition + but the market really is n't going to be stood on its head said a banker at one of frankfurt 's big three banks + the return of the rothschilds is modest + the new representative office with one manager and two <unk> none a member of the rothschild family will carry out no banking operations of its own + instead it is to seek out corporate financing business and sell investment products on behalf of the family 's mainstay banking units <unk> <unk> rothschild & sons ltd. in london rothschild & cie. in paris and rothschild bank ag in zurich + the constraints do n't bother the office 's <unk> manager erich <unk> + he left his job as general manager of shearson lehman hutton holdings inc. 's frankfurt office because he says when the rothschilds called i could n't resist + each rothschild bank is linked by family ties and <unk> + in march <unk> <unk> rothschild in london and rothschild bank in zurich showed assets of # N billion $ N billion and N billion swiss francs $ N million respectively + the paris bank does n't publish that figure + in europe the rothschilds banks are focusing on mergers and acquisitions as european industry <unk> ahead of N + yet the group 's limited resources makes it a niche player + obviously there are <unk> limitations on the assistance we can provide concedes <unk> david de rothschild but we feel we have some cards to play + among them he says is the family 's traditional ties to old wealth and <unk> in banking and industry throughout europe and beyond + the rothschilds hope to use a long history in private banking and an <unk> of exclusivity to attract private and institutional investors + as at the zurich bank the minimum investment for individuals will be high about a million german marks $ N three times what many other west german investment banks require + but we do make exceptions says a smiling <unk> <unk> de rothschild especially if they are very young and have very rich parents + as program trading comes under renewed attack for causing stock market gyrations a few people on wall street say it is time to consider extreme measures + the real answer to curbing wild swings in stock prices they say might be to curb or even abolish stock-index futures + a stock-index future is a contract to buy or sell the market value of a basket of stocks such as the standard & poor 's 500-stock index + since stock futures were created in N trading on the chicago mercantile exchange and other exchanges has <unk> to the point where trading in stock-index futures rivals that in the stocks themselves + the conventional view as voiced by goldman sachs & co. partner <unk> black is that stocks and <unk> such as futures and options form a single market and that <unk> make it a more liquid market + but increasingly people are questioning that view and the critics include some of the country 's most successful investors + warren buffett has been on record as opposing stock-index futures since their inception in N + and mario <unk> another star in the investing world says my gut says the <unk> of futures and <unk> far outweigh the benefits + like others mr. <unk> says that if futures cause investors to lose confidence in stocks they will move away from stocks as many have already done + and those who remain he says will demand a higher return and over time raise the cost of capital to companies + essentially the critics of stock-index futures fall into two camps + one group says the futures contribute to stock market volatility the other contends that futures are a <unk> of speculation that <unk> from the stock market 's basic function of raising capital + before futures says new york investor michael <unk> you actually had to pay attention to whether the thing you were buying had any <unk> value + while it was once expected that futures would mimic stock prices traders now routinely check the futures markets in chicago before they buy or sell stocks + when chicago futures prices jump up or down the new york stock exchange follows + on tuesday for instance the dow jones industrial average plunged N points in little more than an hour + then in the space of a <unk> coffee break the average rallied almost all of the way back + paul <unk> who manages more than $ N billion of investments at <unk> capital management inc. blames futures markets for leading the way + the fundamentals do n't change in an hour he says + i think they should close down the futures exchange and then we could get back to investing + index arbitrage the <unk> buying and selling of stocks offset with opposite trades in futures is frequently blamed for adding to stock market volatility + although index arbitrage is said to add liquidity to markets john <unk> managing partner of edward d. jones says too much liquidity is n't a good thing + the kind of instant liquidity that is implied by index futures is that you can buy a portfolio over two years and get out in one day + it 's too <unk> he says + it is n't investing + but stock-index futures have plenty of support + defenders say futures make markets more efficient and provide ways for investors to reduce risks + they note that stocks experienced volatile swings long before futures + and defenders say few people complain about futures when stock prices are rising + louis <unk> managing director in charge of equity options and futures at salomon inc. says that trading baskets of stocks began in the 1970s a decade before the advent of futures + futures he says merely cut down on trading costs + he says blaming futures is like blaming the <unk> + since stock-index arbitrage merely narrows the gap between prices in the futures and stock markets it ca n't add to volatility he says + futures do n't need defending says andrew <unk> a spokesman for the chicago mercantile exchange which trades the s&p N by far the largest stock-index futures contract + despite the current outcry over stock market volatility few people expect stock futures to disappear + for one thing the chicago futures exchanges have political and financial clout including many friends in congress + and traders say that futures have become an accepted part of the financial landscape + all life is about change either you <unk> or die says one chicago futures trader + if futures are n't permitted here we 'll take it to australia or tokyo + average daily volume in s&p N futures last year was N contracts + based on yesterday 's closing price of the s&p the average value of one day 's trading amounts to $ N billion + by contrast average dollar volume on the big board last year was $ N billion + many investment managers say futures are useful as a way to hedge portfolios + if managers fear that the overall stock market will fall but want to continue owning stocks they can hold on to specific stocks and sell a corresponding amount of futures contracts + average daily volume in s&p N futures last year was N contracts + based on yesterday 's closing price of the s&p the average value of one day 's trading amounts to $ N billion + by contrast average dollar volume on the big board last year was $ N billion + many investment managers say futures are useful as a way to hedge portfolios + if managers fear that the overall stock market will fall but want to continue owning stocks they can hold on to specific stocks and sell a corresponding amount of futures contracts + and although criticism of futures generally comes from wall street one chicago futures trader notes that brokerage firms rely on futures as hedging tools when they buy and sell big blocks of stocks from institutions + one reason futures are said to add volatility is that unlike in stocks people can speculate in futures with little money down + margin requirements for speculators on the chicago mercantile exchange are currently about N N + for $ N million you can move $ N million of stocks a specialist on the big board <unk> + that gives futures traders a lot more power + by contrast an investor in stocks must put up N N in cash + some critics say futures encourage people to think of stocks as a single commodity rather than as investments in individual businesses + thus they say futures inhibit the basic purpose of the stock market to accurately price securities so that capital and investment flows where it 's needed most + the s&p N index futures transferred the identity of N stocks into one unit making them a simple commodity to trade says george <unk> senior vice president at a. webster <unk> in philadelphia + it took away the need to know the bad third-quarter report of ibm for example mr. <unk> says + of course portfolio trading the increasingly common practice of buying or selling baskets of actual stocks also <unk> stocks as <unk> commodities + there is a class of investor that wants to be exposed to the whole market says <unk> <unk> assistant vice president at travelers investment management co + the s&p futures are merely a cheaper and <unk> way to get access to all N stocks he says + the big board yesterday began trading in its own basket trading vehicle representing the s&p N stocks + but owning index futures is n't the same as owning the underlying stocks + stockholders as a group can win because they own a share of corporate earnings which can grow and boost stock prices + futures on the other hand are a zero sum game a market for making side bets about the direction of stock prices + you do n't own anything says stephen boesel a money manager for t. rowe price in baltimore + you 're making a pure bet on the market + the european community commission challenged an agreement on routes and fares between france 's two largest airlines on antitrust grounds + meeting in <unk> wednesday the commission voted as expected to formally object to the accord between air france the state-owned airline and state-controlled domestic carrier air <unk> + an ec spokesman said the two companies will be notified so they can begin negotiations with brussels on how to modify the pact + at issue is an accord dating back to march in which air france gained access to five domestic french routes under air <unk> 's flight numbers and the domestic airline got to fly to five cities outside of france under the flag of air france + the two shared results from this route swap and followed rules on ticket pricing + the ec commission decided that such an accord does n't benefit consumers enough to merit an exemption from antitrust law + the airlines presented it as offering consumers more choice and better flight connections + an air france spokeswoman said we 're absolutely ready to study all solutions + an air <unk> spokesman said because they the ec have doubts we will work again on the text and the <unk> of the accord + a state appellate court <unk> the N convictions of <unk> <unk> corp. and two of its executives on charges of assault for <unk> workers to toxic mercury <unk> + the indictment charged that <unk> operated a machine to crush broken <unk> and recover the mercury in an illegal <unk> + the charges said that one worker suffered permanent brain damage from mercury exposure + the judge handling the case in state supreme court a trial court had <unk> out the jury <unk> ruling that the matter should have been handled under federal <unk> safety and health administration rules + but the appellate division of state supreme court held that federal law did n't <unk> the states from such a prosecution + elizabeth <unk> district attorney for brooklyn n.y. said the appellate division has agreed with our view that despite federal <unk> laws state prosecutors have the power to protect working people + lawyers for the company and executives could n't be reached for comment + the executives face five to N years in prison and fines of $ N or double the profit made by failing to comply with the rules + the company could be fined a maximum of $ N or double the profit + general motors corp. wants to buy as much as N N of jaguar plc marking its first <unk> in a possible <unk> battle against ford motor co. for control of the british car maker + gm sought u.s. antitrust clearance last week to purchase more than $ N million worth of jaguar shares but does n't own any yet according to gm officials here and at the company 's detroit headquarters + the no. N u.s. auto maker then wrote jaguar that it intends to go to that N N level once it wins the u.s. clearance to go beyond $ N million a jaguar spokesman said yesterday + the gm move follows tuesday 's declaration by ford which holds an unwelcome N N stake in jaguar that it is prepared to bid for the entire company + gm is close to completing a friendly deal with jaguar that is likely to involve an eventual N N stake and joint manufacturing ventures + speculative investors betting on an imminent clash between ford and gm pushed up jaguar 's share price five pence eight u.s. cents to a <unk> N pence $ N in late trading on london 's stock exchange yesterday + since tuesday the shares have gained nearly N N + but an <unk> bidding war between the world 's top auto giants for britain 's leading luxury-car maker seems unlikely + we will not go over a certain level said david n. <unk> ford 's vice president for finance at a news conference yesterday in dearborn mich + there 's some price at which we 'd stop bidding + he would n't specify what it was + and powerful political pressures may convince the conservative government to keep its so-called golden share which limits any individual holding to N N until the restriction expires on dec. N N + i really do n't see the government doing something that jaguar does n't want over the next N months said kenneth warren a conservative member of parliament and chairman of the select committee on trade and industry in britain 's house of commons + the golden share is a single share but it is the magic share + the government retained the single share after selling its stake in jaguar in N part of a <unk> practice of protecting former government-owned enterprises to <unk> criticism of privatization + the N N restriction covers any would-be suitor british or foreign + ford is willing to bid for N N of jaguar 's shares if both the government and jaguar shareholders agree to relax the anti-takeover barrier <unk> + as jaguar 's biggest holder and britain 's biggest car maker ford could turn up the heat by <unk> a special shareholders ' meeting and urging holders to drop the limits early + ford might succeed because many shareholders are speculators keen for a full bid or institutional investors unhappy over jaguar management 's handling of its current financial difficulties + the government probably would n't give in readily to a hostile <unk> by ford however + it has <unk> a golden share only once before during british petroleum co. 's # N billion $ N billion takeover of <unk> plc in N + in wooing british lawmakers gm has pointed out that its willingness to settle for a minority stake would keep jaguar <unk> and independent + this week the u.s. auto giant paid for N house of commons members and two house of <unk> members to fly to detroit and tour its operations there + while the visit was unrelated to jaguar gm chairman roger smith answered the legislators ' questions about it over lunch tuesday + he said jaguar should n't be <unk> by anyone else recalled one participant + politics also influences the government 's thinking on the anti-takeover restriction + the conservatives do n't <unk> jeopardize marginal <unk> seats in <unk> where jaguar has headquarters nor can the government easily back down on promised protection for a privatized company while it proceeds with controversial plans to <unk> most of britain 's water and electricity industries + prime minister margaret thatcher might however be <unk> to any request by jaguar chairman sir john <unk> for the restriction 's early removal to let gm <unk> more than N N or mount a friendly suitor bid against ford + in the end sir john rather than the government or jaguar shareholders may hold the key that <unk> the golden share + swedish <unk> and <unk> group ab skf said its pretax profit rose N N to N billion kronor $ N million in the first nine months from one billion kronor $ N million in the corresponding period a year earlier + skf said sales increased N N to N billion kronor from N billion + earnings per share were N kronor compared with N kronor + skf said demand for the group 's main product rolling bearings remained favorable in europe which accounts for slightly more than two-thirds of group sales + latin american markets continued their recovery after a weak start to the year skf said + the company said the situation in the u.s. is still uncertain as reduced production in the country 's automotive industry has resulted in weakened demand for rolling bearings + analysts said skf 's results for the first nine months lived up to market expectations as brokerage firms had predicted a pretax profit of N billion to N billion kronor + the three business areas engaged in rolling bearing operations continued to show favorable sales development + sales of rolling bearings increased N N to N billion kronor from N billion kronor in the corresponding period the previous year + we read with interest robert <unk> 's sept. N page-one article on robert redford the <unk> kid gets little respect around <unk> + <unk> conversations with us mr. <unk> argued that mr. redford 's environmental views are at odds with utah residents + this may have been true N years ago but times have changed even in utah + mr. redford no longer stands out as an <unk> + he has not changed but those around him have + many of his views on the protection of <unk> areas <unk> and <unk> are now embraced by mainstream conservative <unk> + recently some N environmental and <unk> groups representing such <unk> points of view as the sierra club the league of women voters and the national <unk> association joined together to request a <unk> of the environmentally <unk> central utah project + while utah is not yet a haven for environmentalism public views toward the environment have significantly improved + in one of the most conservative republican states in the entire nation the <unk> of robert redford 's neighbors is the real story that mr. <unk> missed + <unk> <unk> sam <unk> gary <unk> <unk> city utah + if mr. redford wanted to be accepted by the people of utah he should have taken an advisory role instead of one of forcing his personal preferences + furthermore his actions <unk> that it is too damaging or costly for society to provide jobs through <unk> construction coal mining or to build roads for public safety because of the adverse impact on the environment but it is just fine and <unk> for him to transform a mountain high in the <unk> range into a ski resort + it <unk> me he can <unk> his <unk> and greedy actions in utah + an excellent environmental actor he is + david <unk> <unk> student university of colorado <unk> <unk> + mr. redford like it or not is like a <unk> system on a runaway truck kind of slowing it down into control + he 's rich famous and <unk> and has the time to do something that not even the federal government will do + mr. redford is slowing down a <unk> speeding <unk> known as the progress of <unk> + personally i 'm glad there are people like him around to slow down the profit <unk> and those who are in such a blind hurry for something that may appear to benefit them in the immediate future not <unk> about the <unk> implications + ron <unk> + when president bush <unk> to costa rica today he 'll go with little of the fanfare that <unk> many of his foreign <unk> + but the two-day trip still has managed to fuel controversy over his administration 's policies in central america + some conservatives say mr. bush should n't make the trip during which he will participate in costa rica 's celebration of N years of democracy + these critics object to mr. bush 's participation in a meeting that includes nicaraguan president daniel ortega among the guests + in addition they argue he wo n't help washington 's standing in the region by <unk> the u.s. commitment to democracy less than a month after his administration played an <unk> role in the failed coup attempt in panama + i believe it will do more damage than good because it will <unk> people like daniel ortega says <unk> windsor who served as u.s. ambassador to costa rica during the reagan administration + mr. windsor among other analysts connected to the conservative heritage foundation fears the gathering of N leaders mostly from central american nations will force mr. bush to explain and redeem himself in the wake of charges that the u.s. failed to do enough to aid the removal of panamanian dictator manuel noriega + at the same time liberal and moderate democrats note the irony of mr. bush 's joining a celebration of costa rican democracy at a time his administration has sought sharp cuts in u.s. aid to the tiny country + the administration proposed only $ N million in so-called economic support funds for costa rica this year down from the $ N million the u.s. provided last year + the administration said improvements in costa rica 's economic condition warrant the cut in aid which the country uses mainly to make payments on its $ N billion foreign debt + but costa rican officials argue that the recent drop in coffee prices combined with the country 's continuing struggle to <unk> its economy make the support as necessary as ever + we are crossing the river and we need a little more help to get to the other side said <unk> <unk> an economic affairs specialist at the costa rican embassy in washington + democrats argue that costa rica deserves more assistance for the same reason that mr. bush is attending the celebration this weekend to reward the country for its stability in a region <unk> with turmoil and for its efforts to promote peace in nicaragua + however peace efforts by costa rican president <unk> arias have n't always helped the country 's cause in washington + mr. arias 's <unk> refusal to support the u.s. 's campaign against leftist nicaragua earned him the <unk> of the reagan white house + and more recently he insisted on signing a <unk> agreement intended to <unk> nicaragua 's <unk> contra rebels faster than the bush administration would prefer + i think bush 's going there is a helpful sign said sen. terry sanford d. n.c a member of the foreign relations committee who pushed to provide costa rica about the same amount of aid as it received last year + lawmakers in both houses support the higher level + administration officials defend mr. bush 's decision to make the trip + while they acknowledge the president will attend several meals and a working session also attended by mr. ortega they insist that mr. bush wo n't be extending the nicaraguan leader any special <unk> + the administration also made clear its continuing <unk> for the leftist nicaraguan government in recent days <unk> a package of electoral aid to the nicaraguan opposition renewing the u.s. trade <unk> against the country and continuing to complain that the country supports rebel groups in the region + officials also insist mr. bush will use the trip to highlight his own initiatives for pushing democracy in the region fighting illegal drugs and <unk> the less developed countries + let me say there is a <unk> component to this trip secretary of state james baker told reporters wednesday + there wo n't be any formal resolutions or <unk> i do n't think + but we still see this as an opportunity to discuss many many very important issues + in N the presidents commission of the ncaa which oversees most u.s. <unk> sports contracted with the washington-based american institutes for research to do a survey on the college <unk> of what the body chooses to call <unk> + a brief executive summary was issued last april and attracted some but not much attention + <unk> reports followed and attracted even less notice + i suspect i may be one of the few people to have read them all + the sixth and last report now is out and it puts the effort in perspective + titled comments from students it focuses on the real shame of college sports what happens to young athletes once they enter <unk> + it 's little less than a cry for help from those who make the costly show possible + the previous five reports were mainly statistical but clear enough in <unk> + they showed that participants in division i football and men 's basketball the big-time revenue sports entered school with poorer high-school grades and test scores than <unk> <unk> and students who participated in other <unk> activities and they got lower grades once they got there at least partly because of the athletic demands placed on them + the football and basketball players spent more time on their sports in season than they did on class attendance and <unk> combined N hours a week <unk> N + almost half N N reported suffering mental abuse from coaches and almost <unk> N N said they had been pressured to ignore injuries + but even those numbers do n't describe the situation as well as the athletes do in their own words + the composite portrait that emerges is n't of a <unk> <unk> marking time until he can land a <unk> pro contract he 's part of a tiny minority + rather it 's of a kid we 're talking about N to N year <unk> here having a tough time making the best of what will probably be his one shot at college + the <unk> question coming at the end of a lengthy confidential <unk> was this are there things about your college life you would like to tell us that we did n't ask about + of the almost N athletes surveyed N took the time to respond + here are a few of their answers they say that i am a <unk> but really i 'm an <unk> + they <unk> to me on the recruiting trip + football is the no. N thing here + junior football player + being a <unk> at college is a lot different from high school + first the sport you play is no longer a game it becomes a job + your coaches demand a lot more out of you even though some of them are not willing to take the time to watch you progress + you become <unk> + your interest is not taken to heart because people only care about your performance + freshman basketball player + the coaches should have a more personal and sympathetic attitude toward the athletes not treat us like pieces of meat + they always say to get a degree first but they do n't allow us time or to <unk> practice to study for a test + they just want to get their job done at any cost to the <unk> + freshman football player + the pressure put on us to win at all times has resulted in physical violence such as <unk> and <unk> by coaches + some days the coaches make you feel as though you are part of a large <unk> of animals + in other words they treat you like a piece of meat + <unk> football player + playing <unk> sports does n't give you a lot of time to spend with others + we are almost left out of campus social activities + this mostly happens because we go from football in the fall to lifting in the winter to football again in the spring + freshman football player + you talk about free time <unk> free time + time to relax and enjoy ourselves is always taken up by something to do with football meetings lifting <unk> <unk> or films + there is no recovery period it 's go go go + abuse to our bodies is overwhelming + with our schedule it 's hard to sleep well knowing what is going to happen the next day + junior football player + physical <unk> and depression are common in my life and in some of my <unk> ' lives + football player class unspecified + more often than not college athletes go through college never really experiencing <unk> life to the <unk> + one has to establish one 's own identity away from athletics and make athletics only a part not a whole of the <unk> 's life + <unk> basketball player + somehow and i do n't know how the game needs to be played for fun again and not for the big bowl revenues or lucrative tv contracts + <unk> football player + there have been <unk> that at long last changes may be in the works + the knight foundation of <unk> ohio has established a national commission to look into <unk> reform and the ncaa presidents commission earlier this month recommended cutting spring football practice in half moving the start of basketball practice back by a month and reducing maximum schedules in that sport to N games from N + the key word in that <unk> though is may + ncaa executive director richard <unk> in accepting a place on the knight commission urged that the panel take a balanced view which looks for all the world like a plea not to rock the boat too much and the presidents ' recommendations could face considerable opposition at the ncaa 's full convention in january which will vote on them + i read that one <unk> athletics director predicted that the <unk> proposal could fail because of real world <unk> economic considerations + but the real world also includes the <unk> truth that colleges are cheating the athletes they have <unk> and won + if they wo n't change their ways voluntarily maybe somebody bigger congress should make them + they want <unk> <unk> to the <unk> labs + they want a 24-hour library + and like college <unk> everywhere they are talking about a demonstration where protesters would gather quietly near the science building and raise their hands classroom style + such is the fiber of the <unk> that <unk> intellectuals let fly at <unk> of harvard university 's new society of <unk> and <unk> or song + <unk> are mad as <unk> about campus <unk> and they are n't going to take it anymore at least not without trying a few really neat ideas first + we could have called ourselves the academic intellectual society but then everyone would have said oh you mean the <unk> club <unk> <unk> song 's <unk> adviser told N <unk> at the club 's <unk> meeting earlier this month + membership has since swelled to between N and N + some people may think of <unk> as <unk> <unk> <unk> individuals with <unk> <unk> for their pencils and a <unk> with computers and matters <unk> + <unk> by at least one definition are <unk> circus <unk> + but song founder <unk> <unk> a harvard junior thinks of <unk> and <unk> more as <unk> <unk> with a <unk> <unk> + one of the group 's first projects is a <unk> hot line that students could call when they have an urge to delay studying + the club plans to show <unk> movies such as real <unk> in which physics <unk> pop corn with <unk> and naturally the <unk> of the <unk> a tale of college males with <unk> <unk> and <unk> <unk> + one of its more ambitious goals is to get <unk> <unk> the los angeles high-school <unk> teacher featured in the film stand and deliver to come to harvard for a guest <unk> + <unk> and <unk> sometimes find themselves a bit isolated at harvard + so mr. <unk> says high priority is being given to creating a computerized <unk> service where instead of being matched for eye color you could be matched for similar intellectual interests + for instance + i 'm a <unk> major but i want to know about <unk> + hopefully i 'd find someone in <unk> who wanted to know more about <unk> + it could work + meanwhile finding a volunteer to write the computer program is n't a problem + <unk> savings bank of new york was cleared by the federal deposit insurance corp. to acquire <unk> savings bank of <unk> n.j. the banks said + <unk> holders who approved the plan last april will receive $ N in cash a share or a total $ N million + the fdic cleared the move yesterday and the banks must wait at least N days before closing the purchase + a closing date has n't been set + <unk> industries inc. directors authorized a <unk> split of the common payable dec. N to stock of record nov. N + the split was aimed at boosting the stock 's liquidity said <unk> <unk> chairman of the <unk> n.j. maker of plastic film products + after the split the company will have more than N million shares outstanding + in national over-the-counter trading yesterday <unk> shares closed at $ N down N cents + <unk> federal savings & loan association edison n.j. + lawrence b. seidman N years old was named chairman of this savings and loan institution + he will succeed charles l. <unk> chairman and chief executive officer who retired last month + <unk> is conducting a search for a chief executive + mr. seidman a director of <unk> since july is general partner of seidman financial associates which owns N N of <unk> + william j. <unk> was named senior vice president public affairs and advertising for this financial and travel services concern 's american express bank ltd. subsidiary + mr. <unk> N years old previously was first vice president public affairs and advertising at the banking unit + environmental concerns are beginning to have as much influence in <unk> spending plans as the price of crude does + in the wake of the exxon <unk> spill in march new <unk> drilling bans are sharply <unk> exploration in promising locations offshore and in alaska + at the same time moves toward tighter <unk> standards are spurring interest in lighter or alternative fuels that do n't <unk> as much as fuel refined from heavy <unk> generally high in <unk> + over the years the world 's stream of oil has been growing heavier + so the scramble is on for lighter <unk> <unk> and for natural gas in the u.s. + recently saudi arabia and venezuela traditional <unk> producers have <unk> of new finds of light <unk> oil by their national oil companies + venezuela has also earmarked $ N million in new money for <unk> exploration + and some oil companies are trying to lock in future supplies + typical is <unk> <unk> <unk> italy 's state-owned energy company which not long ago acquired through its agip oil subsidiary a N N share in the consortium accounting for half of <unk> 's oil output + agip already has an oil stake in libya + both countries produce high-quality <unk> <unk> especially <unk> to making <unk> motor fuel at minimum refining cost + franco <unk> <unk> chairman looks for sweeping structural change in the oil industry he calls it a revolution requiring huge investments as a result of environmental issues + he made a special trip to examine u.s. environmental trends because they are often followed in europe + <unk> needs to know what 's coming as it prepares to spend some $ N billion on upgrading its refineries he says + oil companies world-wide will have to spend a lot of money for the cleaner fuels that will be required says john h. <unk> the president of the petroleum industry research foundation + it will go for work ranging from refinery <unk> to changes in the distribution system including the way service stations pump fuel into cars + in the u.s. the search for oil had been headed toward environmentally sensitive areas believed to have vast reserves + alaska 's arctic national wildlife refuge alone is thought to hide more than three billion barrels of oil + until the tanker spill big oil was slowly convincing authorities it could <unk> produce from such places + now the wildlife refuge has been closed to the industry possibly for years + similarly a group of companies led by chevron corp. has been unable to pump oil found off the california coast in the early 1980s + a huge production system built in the sea off santa barbara and <unk> is sitting idle + but the push for cleaner fuels is increasing the <unk> of natural gas + more than half the domestic drilling now under way is for gas partly on the assumption that demand will rise for a fuel that is cleaner to <unk> than either oil or coal + activity has revived in the largest u.s. <unk> regions such as the gulf of mexico + santa fe international corp. which is owned by kuwait and is n't related to santa fe southern pacific 's unit is stepping up development of a well off texas ' <unk> island where it found gas in N + we could have sat on it longer but the impetus is to get the gas to the marketplace says richard <unk> senior <unk> for santa fe international + we 're trying to get it on line as soon as possible now + this month exxon corp. announced plans for a <unk> project drilling for gas about five miles underground in the <unk> basin of western oklahoma the <unk> drilling project in the u.s. + exxon will use a parker drilling co. rig built in N that can go down N N miles + as the soviet union <unk> with its worsening economy leading reformers have drawn up a blueprint for change designed to push the nation much closer to a free-market system + the proposals go far beyond the current and rather confused policies of perestroika mikhail gorbachev 's restructuring of the economy + they lay out a clear timetable and <unk> for <unk> the system of setting prices breaking up huge industrial monopolies and putting unprofitable state-owned companies out of business + they also address such <unk> subjects as the likelihood of unemployment and high inflation and recommend ways to soften the social consequences + while many solutions to the nation 's economic troubles are being discussed the blueprint is attracting widespread attention here because of its <unk> and presumed <unk> <unk> + although it was published <unk> in the latest edition of the weekly <unk> <unk> soviet sources say the article was written by <unk> <unk> and a small group of colleagues + mr. <unk> head of the academy of science 's institute of economics was recently appointed deputy chairman of the soviet government and head of a state commission on economic reform + it 's clearly a <unk> for the next stage of perestroika said one analyst + the economic ideas in the document are much <unk> than current policies + for example the proposed overhaul of prices an extremely sensitive political topic is far more precise than the vague plans announced by mr. gorbachev in N and later dropped + but the proposals also display political <unk> <unk> some of the most controversial ideas in cautious language so as not to <unk> powerful conservatives in the government who stand to lose out if they are implemented + seeking a middle path between opponents of change and <unk> who demand overnight solutions the article advocates what it calls a <unk> approach + the document is to be discussed at a conference of leading economists late this month and will probably be presented to the soviet parliament for consideration this year + as <unk> draw up proposals for the next five-year plan which starts in N the blueprint represents a powerful first shot in what is likely to be a fierce battle over economic reform + the authors make a gloomy assessment of the economy and concede that quick and easy <unk> to success simply do n't exist + instead they <unk> out a strategy in several <unk> from now until N + most of the measures would probably only start to have an effect on beleaguered soviet consumers in two to three years at the earliest + the key steps <unk> include property + rigid ideological restrictions on property ownership should be abandoned + the document proposes breaking up the <unk> system of state-owned enterprises and farms and allowing a big private sector to <unk> helped by tough <unk> legislation + the economy would be thrown open to numerous types of ownership between now and N including factories leased by workers or owned by shareholders cooperatives and joint ventures + some forms of private property would be <unk> + such moves would greatly reduce the power of government ministries who now <unk> guard their turf and are seen as one of the major obstacles blocking economic reform + finances + emergency measures would be introduced to ease the country 's financial crisis notably its $ N billion budget deficit + by the end of next year all <unk> state enterprises would be put out of business or handed over to workers who would buy or lease them or turn them into cooperatives + similar steps would be taken to liquidate unprofitable state and collective farms by the end of N + a unified system of taxation should be introduced rapidly + to <unk> up some of the N billion rubles in circulation the government should encourage home ownership including issuing bonds that guarantee holders the right to purchase an apartment + labor + a genuine market for labor and wages would replace the present rigid <unk> system + <unk> from decades of soviet <unk> the new system would lead to big differences in pay between workers and almost certainly to unemployment + to cushion the <unk> the government would introduce a minimum wage and unemployment benefits + prices + the entire system of <unk> set prices would be <unk> and free-market prices introduced for most wholesale trade and some retail trade + consumers would still be able to buy some food and household goods at subsidized prices but luxury and imported items including food would be sold at market prices + wholesale prices would be divided into three categories raw materials sold at fixed prices close to world levels <unk> procurement prices for a small number of key products and free prices for everything else to be determined by contracts between suppliers and purchasers + inflation-adjusted social benefits would ensure that the poor and elderly do n't suffer <unk> + foreign trade + the current <unk> and <unk> of foreign trade would be taken much further + soviet companies would face fewer obstacles for exports and could even invest their hard currency abroad + foreigners would receive greater incentives to invest in the u.s.s.r. + alongside the current <unk> ruble a second currency would be introduced that could be freely exchanged for dollars and other western currencies + a domestic foreign exchange market would be set up as part of an overhaul of the nation 's banking system + the blueprint is at its <unk> when referring to the fate of the two powerful economic institutions that seem likely to oppose such sweeping plans the state planning committee known as <unk> and the state committee for material supply or <unk> + but it hints strongly that both organizations would increasingly lose their clout as the changes particularly the introduction of wholesale trade and the breakup of state monopolies take effect + ready willing and unable i always lift the <unk> when my car does n't start if <unk> at home do n't work i <unk> take them apart + i 'll admit there 's nothing wrong that i ever do find but it 's nice when people say i appear <unk> inclined + <unk> adams + <unk> shock + at the movies today in detail you see what the <unk> would n't show in <unk> three + robert gordon + <unk> comment + do n't worry people will learn to read as long as there are tv program listings + john <unk> + albert engelken and robert thomson had never met though for N years their lives had been <unk> in a way <unk> to the sports world + mr. engelken now a <unk> executive in washington d.c. and mr. thomson a <unk> salesman in <unk> n.j. had n't even talked to each other + but one recent day they became much closer + mr. engelken a <unk> baseball fan <unk> over the sports pages to chart the <unk> of my favorite and <unk> teams and players + he often <unk> he says at the clutter of sports stories about drugs alcohol gambling and some player 's <unk> about the <unk> millions he is offered to play the game + his morning paper the washington post even carries a sports column called <unk> that <unk> the latest <unk> and convictions of players and team managers + like many sports <unk> mr. engelken has turned <unk> + but his is a story about a hero in an era of sports <unk> and about what <unk> ruth mr. engelken <unk> us once called the only real game in the world + to mr. engelken it is also a story about love because i 'm <unk> to have a wife who still thinks her slightly <unk> husband 's <unk> birthday deserves the ultimate present + to understand what mr. engelken means one must go back to a <unk> october afternoon in N at new york 's <unk> grounds stadium where it can be argued the most dramatic moment in baseball history was played out + it was the ninth inning of the third game of a <unk> <unk> between the brooklyn <unk> and the new york giants the predecessor to the san francisco giants scheduled to play in tonight 's world series + baseball fans throughout new york had <unk> out a long summer with their teams and now it had come to this a battle between the two for the national league <unk> down to the last inning of the last game no less + some N fans <unk> the stands and shouted at the top of their <unk> + mr. engelken was doing the same across the hudson river in new jersey where with his nose pressed against the front window of the <unk> national bank he watched the <unk> on a television set the bank set up for the event + the <unk> series had <unk> the <unk> giants fan + the giants struck first winning the <unk> N on a <unk> homer off <unk> <unk> ralph <unk> mr. engelken recalls with precision today + the giants got <unk> in the second game N and trailed N going into the bottom of the ninth of the third and deciding game + the giants scored once and had <unk> on second <unk> <unk> and third <unk> <unk> as bobby thomson advanced to the plate + the rest as they say is history + mr. thomson a tall <unk> <unk> <unk> stepped into the <unk> 's box + thomson took a called strike mr. engelken <unk> + the tension mounted as ralph <unk> again on the <unk> <unk> down the <unk> + he wound up and let loose a <unk> + the pitch <unk> toward bobby thomson high and inside and then with a crack of the bat was sent <unk> back into the lower <unk> stands + giants fans went into euphoria says mr. engelken + and bobby thomson was made a <unk> + the same bobby thomson it turns out who sells those <unk> today + there ca n't be an older baseball fan alive who does n't clearly remember that bobby thomson homer who ca n't tell you where he was when he heard the famous <unk> <unk> radio broadcast the one that concluded with mr. <unk> shouting over and over the giants win the <unk> the giants win the <unk> + mr. engelken and mr. thomson drifted in different <unk> in the subsequent years and the <unk> grounds located under <unk> 's <unk> in upper manhattan was replaced by a <unk> project + mr. thomson played <unk> and third base until N posting a lifetime N <unk> average and <unk> up N home runs before retiring and going into <unk> sales + mr. engelken moved south to washington but he took with him <unk> memories of the homer of N + when his wife <unk> came down the <unk> on their <unk> day in N mr. engelken no <unk> on the romantic front gave her the ultimate <unk> you look <unk> than bobby thomson 's home run + the couple 's first dog homer was named after the great event though <unk> friends assumed he was the <unk> of the <unk> + and when mr. engelken 's sister <unk> who was born two days before the home run reached her <unk> birthday mr. engelken wrote his sports hero to tell him of the <unk> of events + mr. thomson sent off a card to <unk> it does n't seem like N years since i hit that home run to <unk> your birth it read + <unk> was pleased but nowhere near as much as mr. engelken + the family license plate reads <unk> N the first three letters of the family name and no surprise here bobby thomson 's uniform number + and on mr. engelken 's <unk> birthday his wife bought a book detailing the big homer and sent it off to mr. thomson to be <unk> + what could have been better asks mr. engelken + <unk> engelken asked the same question earlier this year when her husband was about to turn N + she had an idea + on her husband 's <unk> birthday after an <unk> N years of marriage it should be noted <unk> al and their <unk> son set out for new york to visit <unk> university + mrs. engelken had scheduled a stop on the new jersey turnpike to she told her husband pick up some papers for a neighbor + the papers would be handed over at a bank of telephone <unk> just off exit N + it sounded like something out of ian fleming mr. engelken recalls + at the appointed exit the family pulled over and mrs. engelken went to get her papers + mr. engelken turned off the motor and rolled down the window + in a matter of minutes she was back with a tall <unk> man in <unk> + she <unk> down by the car window and addressed her husband with her favorite <unk> + <unk> she said happy <unk> birthday + this is bobby thomson + and there he was recalls mr. engelken + the hero of my youth the one person in history i 'd most like to meet + keep your thomas <unk> or st. <unk> or <unk> i 'd take baseball 's flying <unk> without <unk> + they talked of the home run + i thought it was in the upper deck said bobby thomson now N years old + they talked of the aftermath + i never thought it would become so <unk> bobby <unk> + mr. engelken says his wife was <unk> by the whole thing + it was worth it just for the look on albert 's face + the two men spent an hour at exit N <unk> the event <unk> the <unk> dream of a young boy now turned N mr. engelken says + his hero signed photographs of the homer and <unk> called ralph <unk> a very fine <unk> + and when mr. engelken asked him why he took time off from work for somebody he did n't even know bobby thomson replied you know albert if you have the chance in life to make somebody this happy you have an obligation to do it + in an interview mr. thomson who is married and has three grown children says he has few ties to baseball these days other than playing <unk> games now and again + but his fans to his constant <unk> never let him forget the famous <unk> + his mail regularly recalls my one event and has been growing in recent years + in response to the letters mr. thomson usually sends an <unk> photo with a <unk> note and rarely <unk> a <unk> + but when <unk> engelken wrote him saying she could stop near his new jersey home it seemed different + what a good feeling it would be for me to do that he says he thought + when the engelken family got back from its trip up north mr. engelken wrote it all down just to make sure no detail was missed + on the way home his notes recall it took concentrated effort to keep that car pointed south + my mind was miles north at a place called <unk> 's <unk> where a real sports hero had captured the <unk> of a kid who never fully grew up and is all the richer for it + take heart sports fans he wrote + real heroes exist + you might not find one in the <unk> column + but who knows + you might meet up with him at that bank of telephone <unk> just off exit N of the new jersey turnpike + southam inc. said its unprofitable weekly newspaper the financial times of canada is up for sale + analysts said the announcement the latest in a series of <unk> and restructuring moves is aimed at improving southam 's earnings before the expiration in june of a standstill pact with <unk> corp + when that agreement expires <unk> will be free to increase its N N stake in southam or to make an offer for the whole company + <unk> of the southam family hold an additional N N stake in the toronto-based company canada 's largest newspaper publisher + the newspaper could fetch between N million and N million canadian dollars us$ N million to $ N million said one analyst who asked not to be identified + a spokesman for southam declined to comment on the price the company is seeking or on estimates of the paper 's annual losses which most analysts place at between c$ N million and c$ N million + yesterday southam reported third-quarter earnings of c$ N million on revenue of c$ N million down from c$ N million on revenue of c$ N million in the year-ago quarter + to be profitable the paper requires more circulation and building circulation is an expensive undertaking said john <unk> the paper 's publisher + southam said the level of future investment required by the paper would have restricted its options in other areas + the acquisition of the financial times of canada is well within reach for any number of media companies both public and private said james <unk> an analyst with toronto-based <unk> james capel inc + possible bidders include christopher <unk> a toronto financier and vice chairman of hees international bancorp inc. a holding company controlled by toronto 's bronfman family + mr. <unk> sold his stake in <unk> corp. to hees earlier this year and is said to be seeking a media acquisition + mr. <unk> could n't be reached for comment but roy <unk> chairman of <unk> media a closely held concern that publishes two business magazines said his company would take a close look at the newspaper + mr. <unk> said the sale of the <unk> financial times which southam has owned since N is consistent with southam 's strategy of cutting costs to obtain maximum profits from its operations while <unk> of <unk> <unk> assets + southam agreed to sell its N N stake in <unk> communications ltd. a broadcasting concern to <unk> hunter ltd. for about c$ N million last year + this year it has moved to cut costs in its newspaper division through layoffs and asset sales while reaching joint venture and acquisition agreements in other areas + the financial times of canada has no links to the british daily newspaper the financial times + norton co. said net income for the third quarter fell N N to $ N million or N cents a share from $ N million or $ N a share + operating profit for the <unk> engineering materials and petroleum services concern was $ N million or N cents a share up N N from $ N million or N cents a share + the company had a tax credit of $ N million + in the year-earlier quarter the tax credit was $ N million + sales rose N N to $ N million from $ N million + operating profit in the company 's <unk> segment rose N N while operating profit in the engineering materials segment rose N N + however the company 's petroleum services segment while profitable was hurt by high financing costs associated with the company 's buy-out of a N N stake in eastman <unk> co. from texas eastern corp. last june + norton and texas eastern had each held a N N stake in eastman in a joint venture + norton announced earlier this month that it was exploring the possible sale of all or part of eastman <unk> + for the nine months norton had net of $ N million or $ N a share and a tax credit of $ N million + in the year-earlier period the company had net of $ N million or $ N a share and a tax credit of $ N million + norton had operating profit of $ N million or $ N a share up N N from $ N million or $ N a share + sales rose N N to $ N billion from $ N billion + <unk> park and her family <unk> for four years to buy a tiny apartment here but found that the closer they got to saving the $ N they originally needed the more the price rose + by this month it had more than doubled + now the <unk> <unk> whose husband earns a modest salary as an assistant professor of economics is saving harder than ever + i am determined to get an apartment in three years she says + it 's all i think about or talk about + for the parks and millions of other young koreans the <unk> dream of home ownership has become a <unk> illusion + for the government it has become a highly volatile political issue + last may a government panel released a report on the extent and causes of the problem + during the past N years the report showed housing prices increased nearly <unk> + the report laid the blame on speculators who it said had pushed land prices up <unk> + the panel found that since N real-estate prices rose nearly N N in a speculative fever fueled by economic prosperity the N seoul olympics and the government 's pledge to rapidly develop korea 's southwest + the result is that those rich enough to own any real estate at all have boosted their holdings substantially + for those with no holdings the prospects of buying a home are ever <unk> + in N a quarter of the population owned N N of the nation 's N square <unk> of private land the report said and N N of the population owned N N of the land devoted to housing + meanwhile the government 's land bureau reports that only about a third of korean families own their own homes + <unk> have soared along with house prices + former national <unk> hong <unk> now a radio <unk> says the problem is <unk> for many people + i 'm afraid of a popular <unk> if this situation is n't corrected he adds + in fact during the past three months there have been several demonstrations at the office complex where the land bureau is <unk> and at the national assembly demanding the government put a stop to real-estate speculation + president roh <unk> woo 's administration has been studying the real-estate crisis for the past year with an eye to partial land <unk> + last week the government took three bills to the national assembly + the proposed legislation is aimed at <unk> some of the <unk> in the current <unk> system + <unk> of the bills as currently <unk> are a restriction on the amount of real estate one family can own to N square <unk> in the nation 's six largest cities but more in smaller cities and rural areas + the government will <unk> offenders but wo n't <unk> property + a tax of between N N and N N on property holdings that exceed the <unk> ceiling + taxes of between N N and N N a year on excessive profits from the resale of property or the sale of idle land to the government + the government <unk> excessive profits as those above the average realized for other <unk> properties in an area + grace periods ranging from two to five years before the full scope of the penalties takes effect + the administration says the measures would stem rampant property speculation free more land for the government 's ambitious <unk> program designed to build two million apartments by N and perhaps boost the popular standing of president roh + but opposition legislators and others calling for help for south korea 's <unk> say the proposed changes do n't go far enough to make it possible for ordinary people to buy a home + some want lower limits on house <unk> others insist on <unk> higher taxation for larger homes and lots + the citizens coalition for economic justice a <unk> group leading the charge for radical reform wants restrictions on <unk> high taxation of capital gains and drastic revamping of the <unk> system on which property taxes are based + but others large <unk> real-estate developers and business leaders say the government 's proposals are <unk> + led by the federation of korean industries the critics are lobbying for the government to weaken its proposed restrictions and penalties + government officials who are urging real-estate reforms <unk> at the arguments of business leaders and <unk> at their pressure + there is no violation of the <unk> principle of private property in what we are doing says lee <unk> <unk> director of the government 's land bureau which drafted the bills + but he adds the constitution <unk> the government to impose some controls to <unk> the shortage of land + the land available for housing construction stands at about N square <unk> a person N N lower than in taiwan and only about half that of japan + mr. lee estimates that about N property speculators are operating in south korea + the chief <unk> he says are big companies and business groups that buy huge amounts of land not for their corporate use but for resale at huge profit + one research institute calculated that as much as N N of <unk> land is held by N companies and that as little as N N of that is used for business + the government 's office of bank supervision and examination told the national assembly this month that in the first half of N the nation 's N largest business groups bought real estate valued at $ N billion + the ministry of finance as a result has proposed a series of measures that would restrict business investment in real estate even more tightly than restrictions aimed at individuals + under those measures financial institutions would be restricted from owning any more real estate than they need for their business operations + banks investment and credit firms would be permitted to own land equivalent in value to N N of their capital currently the proportion is N N + the maximum <unk> property holdings for insurance companies would be reduced to N N of their total asset value down from N N currently + but mrs. park acknowledges that even if the policies work to slow or stop speculation apartment prices are unlikely to go down + at best she <unk> they will rise more slowly more slowly she hopes than her family 's income + <unk> corp. <unk> n.j. declared its initial quarterly of five cents a share payable dec. N to stock of record nov. N + the maker of specialty chemicals has about N million shares outstanding + the company said the move recognizes its strong financial position + although profits were squeezed in N mainly as a result of higher <unk> costs the company said it is confident about future earnings and cash flow for N and beyond + in national over-the-counter trading yesterday <unk> shares rose N cents to close at $ N a share + the justice department said it is seeking to join a private lawsuit challenging a pittsburgh suburb 's <unk> ordinance that sharply restricts the locations available to group homes for the handicapped + this would be the department 's first suit challenging a local <unk> ordinance under N amendments to the fair housing act + under those amendments which took effect in march of this year the federal government can intervene in private <unk> lawsuits + the ordinance in moon township prohibits <unk> a group home for the handicapped within a mile of another such facility + in papers filed with the federal district court in pittsburgh the justice department alleged that the ordinance by limiting the number of group homes that can be established in the township makes housing unavailable on account of <unk> + the private suit was brought by three <unk> <unk> people who live in a group home in moon + <unk> smith moon township manager said the ordinance is intended to prevent the concentration of group homes for the <unk> <unk> from changing the character and flavor of the neighborhood + he said the ordinance also will benefit the <unk> <unk> + our intent is to spread them out to insure they are well integrated into the community he said + energetic and concrete action has been taken in colombia during the past N days against the <unk> of the drug trade but it has not been sufficiently effective because unfortunately it came too late + ten years ago the newspaper el espectador of which my brother <unk> was editor began warning of the rise of the drug <unk> and of their leaders ' aspirations to control colombian politics especially the congress + then when it would have been easier to resist them nothing was done and my brother was murdered by the drug <unk> three years ago + the most <unk> <unk> have not <unk> their press more <unk> than the drug <unk> <unk> colombia 's + the censorship is <unk> through terrorism and assassination + in the past N years about N journalists have been <unk> forever murdered + within the past two months a bomb exploded in the offices of the el espectador in <unk> destroying a major part of its installations and equipment + and only last week the newspaper <unk> liberal in the city of <unk> was <unk> and its installations destroyed + journalists and their families are constantly threatened as are the newspaper distribution outlets + distribution centers are <unk> and advertisers are <unk> + censorship is imposed by terrorism + if the colombian media accept this new and <unk> censorship there is little doubt that the drug mafia 's terrorism someday will extend to all the newspapers published in the free world + the solidarity of the <unk> media world-wide against drug terrorism is the only way press freedom can survive + the american people and their government also <unk> up too late to the <unk> drugs posed to the moral structure of their country + even now the american attack upon this tremendous problem is <unk> in <unk> to the magnitude of the threat + i can <unk> that a recent colombian <unk> to the u.s. was offered drugs three times in the few blocks ' walk between grand central terminal and the <unk> <unk> hotel in <unk> manhattan + colombia alone its government its people its newspapers does not have the capacity to fight this battle successfully + all <unk> countries must jointly decide to combat and punish the consumers and distributors of drugs + the u.s. as the major drug consumer should lead this joint effort + reduction if not the total <unk> of drug consumption is the requirement for victory + much is being done in colombia to fight the drug <unk> mafia + <unk> homes and <unk> have been <unk> by the military authorities and sophisticated and powerful communications equipment have been seized + more than N planes and <unk> have been <unk> at airports and a large number of vehicles and <unk> has been confiscated + the military has also captured enormous <unk> of powerful and sophisticated weapons <unk> and other <unk> <unk> + much has been accomplished and public opinion <unk> supports the government and the army but on the other hand none of the key drug <unk> have been captured + there has been a lot of talk that a large portion of the colombian economy is sustained by the laundering of drug money + in my opinion this is not true + <unk> drug money has served only to increase <unk> the price of real estate creating serious problems for low-income people who <unk> to own their own homes + drug money has also gone to buy expensive cars airplanes <unk> and <unk> where drugs are consumed + but most of the drug money is kept in investments and in financial institutions outside colombia + in fact the cooperation of those financial institutions is essential to the success of the drug battle + what is of much more importance to the colombian economy than the supposed benefits of <unk> drug money is higher prices for colombia 's legitimate products + the price of coffee has gone down almost N N since the beginning of the year to the lowest level after inflation since the great depression + market conditions point to even lower prices next year + the <unk> coffee <unk> had to be formally <unk> this summer + as a result colombia will earn $ N million less from its coffee this year than last + our coffee growers face reductions in their income and this <unk> them to <unk> <unk> <unk> crops for coffee + u.s. interests occasionally try to impose barriers to the import of another important colombian export cut flowers into the american market + a just price and an open market for what colombian produces and exports should be the policy of the u.s. + i take advantage of this opportunity given to me by the wall street journal to make a plea to the millions of readers of this newspaper to become soldiers dedicated to the fight against the use of drugs + each <unk> of cocaine consumed is a deadly bullet against those in our country and in the rest of the world who fight this terrible <unk> + a crusade of no to the consumption of drugs is <unk> + mr. <unk> is president of el espectador a newspaper founded by his <unk> + it has more drug users than boston has people + <unk> thousand of its children live in foster homes while N residents have no homes at all + its tax base is shrinking a $ N billion budget deficit looms and the city faces contract negotiations with all major municipal unions next year + this is new york city + when the dust and <unk> settle in an <unk> mayoral race the man most likely to gain custody of all this is a career politician named david dinkins + running the nation 's largest and most <unk> city may be no treat but at least mr. dinkins knows what to expect from it + as the campaign hits the home stretch however voters still have very little idea what they can expect from him + after N years in city politics david dinkins remains an <unk> + the <unk> <unk> manhattan borough president the first black man to win the democratic nomination for mayor here does n't have a single prominent political enemy + while he is widely described as a man with deep convictions he has few major political programs that he can call his own + asked about his greatest achievement in public life he first speaks about the quality of his staff + now as election day <unk> even some supporters wonder what he will do if he wins the <unk> on nov. N + they wonder whether he can be firm with his longtime allies including union leaders and political <unk> who may seek a place at the trough + they wonder whether he has the economic know-how to steer the city through a possible fiscal crisis and they wonder who will be advising him + will he if he wins be in the <unk> of the most liberal of his allies who advocate such policies as rent control for commercial buildings or will he tilt toward the real-estate interests that have <unk> money into his campaign + after his decisive primary victory over mayor edward i. koch in september mr. dinkins <unk> until recently on a <unk> lead over his republican opponent rudolph giuliani the former crime <unk> who has proved a something of a <unk> as a candidate + but mr. dinkins has <unk> in the past two weeks over his campaign 's payments to a black activist who is a convicted <unk> and over his handling of a stock sale to his son + polls also have recorded some <unk> in mr. dinkins 's support among jewish voters and <unk> projections now put his lead at between four and N percentage points + in an interview with reporters and editors of the wall street journal mr. dinkins appears quite confident of victory and of his ability to handle the <unk> + a lot of people think i will give away the store but i can assure you i will not he says + i am aware we have real budgetary problems + the city is full of aging bridges water <unk> and roadways that are in need of billions of dollars worth of repair + renewed efforts to fight drugs and crime will be costly + but city officials say tax revenues are lagging + and after a decade of explosive job growth on wall street a period of <unk> is under way + mr. koch already has announced he will drop N jobs from the city payroll but that wo n't be enough + new york state comptroller edward <unk> predicts a $ N billion budget gap for the city 's next fiscal year a gap that could grow if there is a recession + if elected mr. dinkins will probably have no choice but to raise taxes on <unk> businesses or cut spending in already <unk> neighborhoods + he is going to face a mess says city council president andrew stein + his supporters are not <unk> but their solution to everything will be to spend more money and he wo n't have any money + by and large mr. dinkins has <unk> the touchy question of whose <unk> he would <unk> + instead of focusing on the financial future mr. dinkins has sold himself as a <unk> for a city recently touched by racial violence and as a <unk> <unk> to N years of <unk> generated by mayor koch + the thing about the dinkins <unk> is that it offers hope to a broad range of people says <unk> <unk> a real-estate executive and former aide to gov. mario <unk> + it is a <unk> <unk> + no doubt mr. dinkins has been a <unk> influence + he is an <unk> figure who <unk> the <unk> of colleagues ' children opens doors for women and almost never has a bad word to say about anybody + more important he emerged as a <unk> last summer after the central park rape of a white <unk> in which a group of <unk> <unk> was charged and the racial murder of a black <unk> in the white brooklyn neighborhood of <unk> + rather than scaring off white voters as many predicted he would mr. dinkins attracted many whites precisely because of his reputation for having a cool head + keeping cool is a dinkins priority on <unk> days this summer he was known to change his <unk> suits as many as four times a day + but even in his <unk> campaign he has shown signs of the <unk> and confusion that some say has plagued his tenure as manhattan borough president and might <unk> him as mayor + over the last few weeks he has <unk> away roughly half of what was once a <unk> lead in the polls over mr. giuliani + a story about how he <unk> the sale to his son of his stock in a media company controlled by his political <unk> <unk> sutton was allowed to <unk> a full week before mr. dinkins faced the media + he has canceled numerous campaign appointments and was largely <unk> to the media until the stock story broke + his campaign was caught <unk> amid allegations it paid almost $ N for what it said was a <unk> effort by black activist <unk> carson a convicted <unk> who later said publicly that he is <unk> + critics have said the payment looked like an attempt by the dinkins camp to get mr. carson to stop leading <unk> demonstrations <unk> the <unk> murder protests the campaign may have feared could cause some white voters to turn from a black candidate + mr. dinkins also has failed to <unk> jewish voters ' fears about his association with the rev. <unk> jackson despite the fact that few local <unk> politicians have been as <unk> for jewish causes in the past N years as mr. dinkins has + these campaign problems have <unk> difficulties mr. dinkins has run into before + a former u.s. marine mr. dinkins got off to a quick start in politics joining a local democratic political club in the 1950s linking up with black urban leaders such as charles <unk> <unk> paterson and mr. sutton and getting himself elected to the state assembly in N + but his chance to become deputy mayor under mayor <unk> <unk> a plan boosted by mr. sutton was <unk> because of mr. dinkins 's failure still largely <unk> to file income tax returns for four years running + i always thought of this as a thing that could always be done tomorrow he said at the time + later mr. dinkins became more deeply <unk> to mr. sutton and other city <unk> including <unk> council president paul <unk> when they helped him get appointed city clerk a largely <unk> post responsible for the city 's marriage bureau among other things + mr. <unk> is now one of the lawyers for mr. sutton 's media company + the debt rose further in N when mr. sutton resigned his position as manhattan borough president to run for mayor + mr. sutton recalls when i left i sat down with charlie <unk> <unk> paterson and david and david said who will run for borough president and i said you will + david <unk> mayor koch 's longtime media adviser says of mr. dinkins he really is the <unk> of the <unk> system + but the guy is so personally decent people tend to forget that + mr. dinkins lost twice by wide margins before finally getting elected borough president in N + but by most accounts he made little of the post and was best known among city politicians for his problems making up his mind on matters before the city 's board of estimate the body that votes on crucial budget and <unk> matters + colleagues today recall with some humor how meetings would <unk> into the early morning hours as mr. dinkins would march his staff out of board meetings and into his private office to discuss en <unk> certain controversial proposals + he taught me how to drink <unk> tea instead of coffee at N a.m. i 'll give him that says deputy mayor robert <unk> + often mr. dinkins 's <unk> prevented him from having a say in the way things turned out critics claim + on the campaign <unk> he often points out that he was the only board of estimate member to vote against a controversial real-estate project at manhattan 's columbus circle + but board members say he took so long to decide how to vote that by the time he decided it was too late to try to draw other members to his position + says one city official everybody else had brought in the <unk> and made their deal + he would have got a lot more done if he made up his mind faster + one board member bronx borough president ferdinand <unk> was said to be so <unk> with mr. dinkins 's behavior at many meetings that he withheld his support for mr. dinkins 's mayoral effort until late in the primary campaign + i had some problem from time to time on the length of time he would take to make up his mind mr. <unk> admits but he maintains that he did n't delay his support of mr. dinkins and that he backs the democratic candidate <unk> + mr. dinkins 's campaign manager and former chief of staff bill lynch denies that the manhattan borough president has taken too long to decide important issues + we did n't <unk> everything that came to us mr. lynch says + on some occasions when mr. dinkins has discussed the issues during the campaign he has run into a familiar kind of trouble + some supporters were stunned this summer when mr. dinkins suggested weakening the law <unk> public employees to go on strike + he withdrew the remark + when he later <unk> with striking hospital workers some allies <unk> a little more concerned that mr. dinkins was setting the wrong tone for coming contract negotiations with city employees + then two days before receiving an endorsement from environmental groups mr. dinkins promised he would issue a three-year <unk> on construction of <unk> plants + that announcement was <unk> criticized by mayor koch who has endorsed mr. dinkins because the city faces a garbage crisis and has already spent $ N million planning for an incinerator that would be scrapped under mr. dinkins 's proposal + while his public statements have at times been confusing mr. dinkins 's position papers have more consistently reflected <unk> sentiment + he favors a form of commercial rent control which the financial community believes would make it more difficult to attract investment in the city + in the midst of a labor shortage he proposes linking city subsidies to businesses to their record of hiring new york city residents + with an <unk> local labor pool many experts believe that policy could drive businesses from the city + and he favors a more cooperative approach toward the neighboring states of new jersey and connecticut in the battle over companies thinking of moving employees out of new york city + many <unk> officials say the koch administration 's aggressive approach helped save N chase manhattan bank jobs from moving across the hudson + but mr. dinkins 's economic <unk> do n't seem to bother the business community where he draws significant support + steven <unk> president of the real estate board of new york an industry organization says mr. dinkins 's economic development program is <unk> but when it comes down to it he can be reasonable + mr. dinkins 's inner circle of advisers appears to include both <unk> and <unk> leaving voters with little clue as to who will be more influential + the key man seems to be the campaign manager mr. lynch + a <unk> <unk> son of a long island potato farmer mr. lynch is a veteran union <unk> who worked on the presidential campaigns of sen. edward kennedy and mr. jackson + but as the dinkins campaign hit tough times this month andrew <unk> the politically <unk> son of the new york governor is also said to have taken a more active role on strategy + another close ally is ruth <unk> a manhattan city <unk> some of whose programs such as commercial rent control have made their way into mr. dinkins 's position papers + if she remains influential with mr. dinkins as some suggest she will his <unk> may take on a more <unk> flavor + but lincoln center president nathan leventhal who would head a dinkins transition team is more mainstream as is real-estate executive anthony <unk> another insider + mr. dinkins also has said he would receive economic advice from a board that would include american express co. chairman james d. robinson iii investment banker <unk> <unk> <unk> specialist <unk> lewis and attorney joseph flom + some business leaders and others also believe that mr. dinkins would place significant responsibility in the hands of a deputy mayor with a strong administrative background + names of possible deputies that have surfaced include former mayoral candidate richard <unk> former schools chancellor frank <unk> and messrs. leventhal and <unk> + then there are mr. dinkins 's <unk> <unk> colleagues such as u.s. rep. <unk> former deputy mayor paterson and mr. sutton + having <unk> positions of real influence or wealth these men constitute the old guard of new york city black politics they are less <unk> than the younger more activist black political community that has been based largely in brooklyn + part of mr. dinkins 's strength is his ability to win the support of both the brooklyn and <unk> <unk> + we know there are <unk> for the city out there says mr. paterson mr. dinkins 's former law partner + if any of us think we 're going to <unk> david 's determination to be the best possible mayor because of his obligations to us we are making a sad mistake + adds ms. <unk> who is expected to win the borough president 's job mr. dinkins is <unk> you have to remember david is a <unk> + but mr. dinkins 's sense of <unk> often comes across more as an insider 's determination not to upset the political apple <unk> + he is taken <unk> in an interview when asked whether as mayor he plans on <unk> the political <unk> that <unk> the <unk> <unk> of new york 's school system + i will sit down and talk some of the problems out but take on the political system <unk> he says with a shake of the head + despite many doubts about his <unk> white new <unk> who gave mr. dinkins N N of their votes in the primary are n't expected to desert in sufficient numbers to turn the election to mr. giuliani + the former u.s. attorney who prosecuted targets ranging from mafia <unk> to wall street executives has succeeded in raising questions about mr. dinkins 's ethical standards but so far has failed to generate excitement about his own <unk> + as a republican in an <unk> democratic city mr. giuliani has an inherent <unk> + as a first-time candidate he has been slow to learn the <unk> of new york city <unk> + mr. giuliani is finding that mr. dinkins in his many years in public life has built up considerable good will that so far has led many voters to <unk> certain <unk> + the bottom line is that he is a very genuine and decent guy says malcolm <unk> a jewish community leader + in the end i think david will be <unk> for being david + <unk> johnson pulls a tape measure across the front of what was once a <unk> <unk> home + a deep <unk> now runs along its north wall exposed when the house <unk> two feet off its foundation during last week 's earthquake + a side <unk> was <unk> away + the <unk> is a pile of bricks on the front lawn + the remainder of the house <unk> <unk> against a <unk> oak tree + the <unk> <unk> ms. johnson dressed in jeans and a <unk> as she <unk> through the steady afternoon rain is a claims adjuster with aetna life & casualty + she has been on the move almost <unk> since last thursday when an army of adjusters employed by major insurers <unk> the san francisco area to help policyholders <unk> through the rubble and restore some order to their lives + equipped with cellular telephones laptop computers <unk> and a pack of blank checks they parcel out money so their clients can find temporary living quarters buy food replace lost clothing repair broken water <unk> and <unk> walls + some of the funds will used to <unk> unstable buildings and clear sites for future construction + many adjusters are authorized to write checks for amounts up to $ N on the spot + they do n't <unk> at writing them + that 's my job get policyholders what they 're entitled to says bill schaeffer a claims supervisor who flew in from aetna 's <unk> conn. office + the <unk> house that ms. johnson is <unk> has been deemed <unk> by town officials + but she asks a <unk> <unk> the bricks from the lawn to give her a boost through an open <unk> window + once inside she spends nearly four hours measuring and <unk> each room in the <unk> house gathering enough information to estimate what it would cost to rebuild it + she <unk> photos of the <unk> floors and the <unk> that has fallen away from the walls + while she works inside a <unk> returns with several friends to collect furniture and clothing + one of the friends <unk> broken <unk> and shattered glass from a <unk> and starts to pack what can be <unk> from the kitchen + others grab books records photo <unk> <unk> and chairs working <unk> in the fear that an <unk> will jolt the house again + the owners william and <unk> hammack are <unk> than many others + a few years ago mrs. hammack insisted on buying earthquake insurance for this house which had been converted into apartments + only about N N of california home and business owners carried earthquake coverage + the <unk> ' own home also in los <unk> suffered <unk> minor damage + ms. johnson who works out of aetna 's office in <unk> creek an east bay suburb is <unk> by the earthquake 's <unk> force + it really brings you down to a human level she says + it 's hard to accept all the suffering people are going through but you have to + if you do n't you ca n't do your job + for aetna and other insurers the san francisco earthquake hit when resources in the field already were stretched + most companies still are trying to sort through the <unk> caused by hurricane hugo in the carolinas last month + aetna which has nearly N adjusters had deployed about N of them in charlotte columbia and charleston + adjusters who had been working on the east coast say the insurer will still be processing claims from that storm through december + it could take six to nine months to handle the earthquake-related claims + when the earthquake rocked northern california last week aetna senior claims executives from the san francisco area were at the company 's hartford conn. headquarters for additional training on how to handle major catastrophes including earthquakes + since commercial airline flights were disrupted the company chartered three planes to fly these executives back to the west coast and bring along portable computers cellular phones and some claims adjusters + because of the difficulty of assessing the damages caused by the earthquake aetna pulled together a team of its most experienced claims adjusters from around the country + even so few had ever dealt with an earthquake + some adjusters like alan singer of san diego had been working in charleston for nearly four weeks + he returned home last thursday packed a bag with fresh clothes and reported for duty friday in <unk> creek + offices were set up in san francisco and san jose + in a few <unk> aetna knew it would probably be <unk> out big <unk> even before a client called or <unk> in a claim + for example officials at <unk> creek office learned that the <unk> hotel near the san francisco airport which is insured by aetna was badly damaged when they saw it on network television news + the secret to being a good adjuster is counting says <unk> <unk> an aetna adjuster from santa ana + you have to count everything + adjusters must count the number of <unk> <unk> <unk> <unk> <unk> and <unk> + but they must also <unk> a price to each of these items as well as to floors <unk> <unk> and <unk> to come up with a total value for a house + to do that they must think in terms of <unk> by the square foot carpeting by the square yard <unk> by the roll <unk> by the linear foot + using a <unk> and a <unk> guide for such jobs as painting plumbing and <unk> in each major region of the country adjusters can figure out the value of a home in today 's market and what it would cost to rebuild it + sometimes repairs are out of the question + when aetna adjuster bill schaeffer visited a retired couple in oakland last thursday he found them living in a mobile home <unk> in front of their yard + the house itself located about N yards from the collapsed section of <unk> highway interstate N was pushed about four feet off its foundation and then collapsed into its <unk> + the next day mr. schaeffer presented the couple with a check for $ N to help them build a new home in the same neighborhood + he also is working with a real-estate agent to help find them an apartment to rent while their home is being built + many of the adjusters employed by aetna and other insurers have some experience with construction work or <unk> + but such skills were <unk> to <unk> johnson + four years ago she was managing a <unk> shop and was totally <unk> + a friend mentioned that she might want to look into a position at aetna if she was interested in a job that would constantly challenge her + she signed up starting as an inside adjuster who <unk> minor claims and does a lot of work by phone + a year later she moved to the commercial property claims division + she spent a month at an aetna school in <unk> pa. learning all about the construction trade including <unk> plumbing and electrical <unk> + that was followed by three months at the aetna institute in hartford where she was <unk> in learning how to read and interpret policies + her new line of work has some <unk> + recently a contractor saved her from falling three stories as she investigated what remained of an old <unk> house <unk> by an <unk> + i owe that contractor + i really do she says + as ms. johnson stands outside the hammack house after <unk> up her chores there the house begins to <unk> and <unk> + the ground <unk> <unk> her + it is an <unk> one of about N since the earthquake and it makes her uneasy + the next day as she prepares a $ N check for the <unk> which will cover the cost of <unk> the house and clearing away the debris she <unk> at the <unk> noise + on further reflection she admits that <unk> inside the <unk> ' house the previous day was n't such a great idea + during her second meeting with the <unk> ms. johnson reviews exactly what their policy covers + they would like to retrieve some appliances on the second floor but wonder if it 's safe to venture inside + ms. johnson tells them that if the appliances ca n't be <unk> their policy covers the replacement cost + mr. hammack is eager to know what aetna will pay for the house which has to come down + when will i get that check for a million dollars he jokes + the adjuster had n't completed all the calculations but says we 're talking policy limits + in this case that 's about $ N + it suddenly <unk> on mr. hammack that rebuilding the house in los <unk> an affluent community in santa clara county may cost more than aetna 's policy will pay + we can lose money on this he says + and you did n't want me to buy earthquake insurance says mrs. hammack reaching across the table and gently <unk> his hand + earthquake insurance costs about $ N to $ N annually for every $ N of value and high <unk> mean it generally pays only when there is a catastrophe + so many californians believe they can get by without it + even ms. johnson herself made that assumption + i always knew that the big one was coming but not during my lifetime she says + now she says she 's thinking of <unk> her own insurance agent + for ms. johnson dealing with the earthquake has been more than just a work experience + she lives in oakland a community hit hard by the earthquake + she did n't have hot water for five days + the apartment she shares with a <unk> daughter and her sister was rattled books and crystal hit the floor but nothing was severely damaged + her sister cynthia wishes <unk> had a different job + we worry about her out there cynthia says + last sunday ms. johnson finally got a chance to water her plants but stopped abruptly + i realized i could n't waste this water when there are people in <unk> who do n't have fresh water to drink + she has n't played any music since the earthquake hit out of respect for those who died on interstate N where the roadway collapsed + the federal communications commission allowed american telephone & telegraph co. to continue offering discount phone services for <unk> customers and said it would soon <unk> its regulation of the long-distance market + the fcc moves were good news for at&t which has been <unk> since the breakup of the phone system for greater <unk> in pricing and reduced regulation + alfred <unk> the new fcc chairman <unk> deregulation of at&t at his last job as head of a commerce department telecommunications agency + but it has been an open question whether mr. <unk> an extraordinarily cautious man would continue pushing deregulation at the fcc in the face of what is likely to be great political pressure + it means that <unk> is serious about the deregulation of long distance said jack <unk> a telecommunications analyst at painewebber inc. who attended the fcc meeting + all the commissioners were in amazing agreement to <unk> regulation for only having been together for a few months + the fcc took three specific actions regarding at&t + by a N vote it allowed at&t to continue offering special discount packages to big customers called tariff N rejecting appeals by at&t competitors that the discounts were illegal + then by a separate N vote it chose the <unk> possible grounds to strike down a different discount plan called tariff N that at&t offered to holiday corp + at&t gave a N N to N N discount to the memphis tenn. company that oversees holiday <unk> in response to a similar discount offered to holiday corp. by mci communications corp + the agency said that because mci 's offer had expired at&t could n't continue to offer its discount plan + but the agency specifically did n't rule whether at&t had the right to match offers by competitors if that means giving discounts not generally available to other phone users + indeed joe <unk> at&t 's vice president for <unk> services said at&t offered a similar tariff N discount to resort <unk> international of indianapolis to meet another mci bid + the fcc did n't say i could n't do it again he said + apart from those two actions mr. <unk> and the three other commissioners said they expect to <unk> how at&t is regulated since competition has increased + richard <unk> chief of the fcc 's <unk> bureau said he expected the agency to propose new rules next year + at&t <unk> the fcc 's actions + the time is long overdue to take a look at the fierce competition in the long-distance business and the rules governing it the new york telecommunications firm said in a statement + but mci of washington was <unk> with the fcc decision concerning tariff N arguing that at&t can not be allowed to <unk> fcc rules + united telecommunications inc. 's us <unk> unit said it was obviously disappointed with the fcc decision on tariff N + us <unk> said was it will petition the fcc decision in federal court + we believe that the court will find it unlawful said a us <unk> spokesman + separately at&t filed a <unk> against mci <unk> it of misleading consumers through allegedly false and deceptive advertising + the at&t action was the most recent blow in a nasty fight + earlier this month mci sued at&t in federal district court claiming that at&t 's ads are false + at&t assembled three of its top executives in washington all <unk> angry to try to <unk> mci 's charges + mci has made <unk> out of the upper <unk> of at&t said painewebber 's mr. <unk> who said he expected at&t to become increasingly aggressive in dealing with its longtime <unk> + <unk> <unk> <unk> in philadelphia also contributed to this article + billions of investors ' dollars are pouring out of the nation 's junk-bond mutual funds <unk> a <unk> of support in the already reeling junk market + last week alone an <unk> $ N billion <unk> out of the junk funds or nearly N N of their total assets according to estimates by <unk> financial services inc. a boston research firm + in the past two months the nation 's N junk funds have lost a total of about $ N billion more than N N of assets through sales or transfers of <unk> shares <unk> says + it made the estimates based on data collected from more than a dozen big junk funds + interviews with three major fund groups fidelity investments vanguard group inc. and t. rowe price associates inc. confirm the trend + their junk funds combined have had net outflows totaling nearly $ N million or about N N of their junk fund assets in the past two months + some fund managers say negative publicity has <unk> investors ' concern about recent declines in junk-bond prices + people have been seeing headline after headline after headline and saying i ca n't take it anymore i 'm getting out says kurt brouwer of brouwer & <unk> a san francisco investment adviser + the withdrawals could <unk> trouble for the $ N billion junk market + if the heavy outflows continue fund managers will face increasing pressure to sell off some of their junk to pay <unk> investors in the weeks ahead + such selling could erode prices of high-yield junk bonds already weakened by a rash of corporate credit problems + mutual fund groups have n't lost control of much of the <unk> money says louis <unk> <unk> 's president + mutual fund officials say that investors have transferred most of it into their money market accounts and to a lesser extent <unk> funds + so the impact on the $ N billion mutual fund industry as a whole probably will be slight + but tremors are likely in the junk-bond market which has helped to finance the takeover boom of recent years + mutual funds are the among the largest holders of junk accounting for more than a quarter of the entire high-yield high-risk market + the N mutual funds investing solely in junk bonds hold assets of about $ N billion + other funds hold a <unk> of junk bonds too + the $ N billion fidelity high income fund has had a net <unk> of about $ N million in the past two months + about $ N million <unk> out last week alone double the level of the week following last month 's campeau corp. credit squeeze + about N N of the <unk> was transferred to other fidelity funds says neal <unk> a fidelity vice president marketing with most going into money market funds + you get a news item it hits you have strong redemptions that day and for two days following then go back to normal says mr. <unk> + the fund with a cash cushion of more than N N has met all the redemptions without having to sell one thing mr. <unk> says + he adds our fund has had positive net sales every month for the last three years until this month + vanguard 's $ N billion high yield bond portfolio has seen $ N million flow out since early september $ N million of that <unk> out friday oct. N alone + still two-thirds of the <unk> has been <unk> into other vanguard portfolios says brian <unk> a vice president + the fund now holds a cash position of about N N + at the $ N million t. rowe price high yield fund investors <unk> out about $ N million in the past two months + those withdrawals most of which were transferred to other t. rowe price funds followed little change in the fund 's sales picture this year through august + the last two months have been the whole ball game says steven <unk> a vice president + <unk> holders have barely broken even this year as fat interest payments barely managed to offset declining prices + through oct. N high-yield funds had an average N N total return the price change plus dividends on fund shares according to lipper analytical services inc + that 's even less than the N N total return of the merrill lynch high-yield index + fidelity 's junk fund has fallen N N this year through oct. N lipper says the vanguard fund rose N N and the t. rowe price fund edged up N N + people who remain in junk funds now could get hit again some analysts and fund specialists say + many funds in recent weeks and months have been selling their <unk> junk issues such as rjr nabisco to raise cash to meet expected redemptions + funds might be forced to accept lower prices if they expand their selling to the securities of <unk> borrowers + and then asset values of the funds could plunge more than they have so far + says michael <unk> chief investment officer of republic national bank and manager of the <unk> group in new york it 's a time bomb just waiting to go off + the surprise resignation yesterday of british chancellor of the exchequer nigel lawson sent sterling into a tailspin against the dollar by creating uncertainties about the direction of the british economy + the u.s. unit also firmed against other currencies on the back of sterling 's tumble as market participants switched out of pounds + the pound also dropped <unk> against the mark falling below the key <unk> level to N marks from N marks late wednesday + mr. lawson 's resignation shocked many analysts despite the recent <unk> speculation of a <unk> between the chancellor and prime minister margaret thatcher + indeed only hours earlier mrs. thatcher had called mr. lawson 's economic policies sound and said she has always supported him + there was a general feeling that we 'd seen the worst said patrick foley deputy chief economic adviser for <unk> bank in london + the resignation came as a great surprise + graham <unk> manager of foreign-exchange operations at hong kong & shanghai banking corp. in new york added that mrs. thatcher 's comments reinforced the market 's growing confidence about sterling and compounded the unit 's later decline + the market was caught totally the wrong way + everyone was extremely long on sterling mr. <unk> said + in late new york trading yesterday the dollar was quoted at N marks up from N marks late wednesday and at N yen up from N yen late wednesday + sterling was quoted at $ N sharply down from $ N late wednesday + in tokyo friday the u.s. currency opened for trading at N yen up from thursday 's tokyo close of N yen + few analysts had much good to say about the pound 's near-term prospects despite the fact that most do n't anticipate a shift in mrs. thatcher 's economic policies + mr. foley of <unk> noted that mr. lawson 's replacement john major the british foreign minister will take time to establish his credibility and in the meantime sterling could trend downward in volatile trade + but mr. foley predicted few economic policy changes ahead commenting that mr. major shares a very similar view of the world with mr. lawson + bob <unk> chief economist at <unk> bank in new york also noted that the pound 's sharp decline is pegged more to uncertainty in the market than a vision of altered united kingdom economic policies + unless mr. lawson 's resignation leads to a change in british interest-rate policy mrs. thatcher 's administration firmly supports high interest rates to keep inflation in check or <unk> toward full <unk> in the european monetary system 's exchange-rate mechanism mr. lawson 's withdrawal will have little long-term impact on exchange rates mr. <unk> concluded + also announcing his resignation thursday was alan walters mrs. thatcher 's economic adviser and mr. lawson 's <unk> + the pound which had been trading at about $ N in new york prior to mr. lawson 's announcement sank more than two cents to $ N prompting the federal reserve bank to buy pounds for dollars + the fed 's move however only proved a <unk> to the pound 's slide and the fed intervened for a second time at around $ N according to new york traders + meanwhile dollar trading was relatively <unk> throughout the session according to dealers who noted that thursday 's release of the preliminary report on the u.s. third-quarter gross national product was something of a <unk> + u.s. gnp rose at an annual rate of N N in the third quarter + the implicit price deflator a measure of inflation was down to a N N annual rate of increase in the quarter from a N N rate of gain in the second quarter + in europe the dollar ended lower in <unk> trading + the market closed prior to mr. lawson 's announcement + on the commodity exchange in new york gold for current delivery rose $ N to $ N an ounce in heavy trading + the close was the highest since august N + estimated volume was five million ounces + in early trading in hong kong friday gold was quoted at $ N an ounce + the following issues were recently filed with the securities and exchange commission + <unk> cos. shelf offering of $ N million of debt securities + coca-cola bottling co. consolidated shelf offering of $ N million of debt securities via salomon brothers inc. and goldman sachs & co + first brands corp. proposed offering of N common shares of which N common shares will be sold by the company and five million shares by holders via first boston corp. and credit suisse first boston ltd + home nutritional services inc. a wholly owned subsidiary of <unk> inc. proposed initial offering of four million common shares of which N million will be sold by home nutritional services and N million will be sold by <unk> via smith barney harris upham & co + <unk> technology corp. initial public offering of N million common shares of which N will be offered by the company and N will be offered by holders via alex brown & sons inc. hambrecht & quist inc. and <unk> arnold & henderson + <unk> communications inc. proposed public offering of N million common shares of which N shares are to be sold by the company and N shares are to be sold by holders via morgan stanley & co. and hambrecht & quist + on an office wall of the senate intelligence committee hangs a quote from chairman david boren do n't hold your ticket <unk> the show 's over + he once used that line in a <unk> meeting on panama meaning do n't shrink from taking action against manuel noriega + so how did a good senator like this end up <unk> a policy that required the u.s. to warn mr. noriega of any coup plot against him + i agree it 's ridiculous says mr. boren and indeed by now ridiculous may be the only way to describe how the u.s. decides to take or rather not to take covert action + george bush disclosed the policy last week by reading it to gop senators perhaps as a way of shifting blame for the panama <unk> to congress + but the broader truth is more complicated and <unk> + the policy was contained in an exchange of letters last october between the senate intelligence committee and the cia and national security council + staff lawyers for both sides were busy agreeing with one another about what the u.s. could not do to oust the panamanian <unk> + they simply got carried away with <unk> what the executive order banning assassinations really meant + mr. boren himself did n't discover the <unk> <unk> until mr. bush told him privately at the white house last week + it 's ironic that david boren should be in the center of this <unk> + a former oklahoma governor he 's a <unk> <unk> of presidential powers in foreign policy + he 's a rare democratic <unk> + he 's the senator most like arthur <unk> the gop senator from michigan who worked to forge a bipartisan foreign policy in the <unk> + <unk> and <unk> are heroes of mine mr. boren says referring as well to sam <unk> the democratic house speaker who <unk> with president <unk> + they allowed this country to be credible + i really want to see that happen again + if this were N mr. boren might even succeed + but in N most senators have other ideas + last july his committee rejected a reagan administration plan to support a coup in panama + ohio democrat howard <unk> refused to support any plan that might get people hurt a <unk> notion for a great power + maine republican william cohen said the plan might violate the assassination ban + so the administration dropped it + by october when the committee rejected a much more modest covert proposal even the administration was agreeing little should be done + mr. boren does n't think all this influenced the failed coup this month but he does concede that congress has made mistakes + in the aftermath of vietnam in the aftermath of iran-contra i can understand some people might think that if they plan a coup they have to bring their lawyers he says + but even mr. boren <unk> congressional oversight + writing in the harvard international review he says that his committee approves covert operations only when there 's a consensus + so what does consensus mean + it does n't mean <unk> he insists though he implies it means a bipartisan majority + the <unk> of u.s. foreign policy is essential he explains + why was <unk> so successful + because it had bipartisan support + mr. boren is confusing consensus on general principles with agreement on specific actions + elliott abrams a veteran of intelligence committee debates doubts that even <unk> or the <unk> <unk> would have taken place if consensus had been required + <unk> and <unk> were <unk> enough to leave specific operations to presidents modern senators mr. boren notwithstanding are less modest + the result is that the senate committee has what amounts to veto power over every covert action + i would n't say it 's quite a veto mr. boren <unk> + but would n't a president who acted despite senate objections be taking grave political risks + he would agrees the chairman + but that is something the president ought to know before he goes ahead + mr. boren even <unk> a silver <unk> + he figures the episode will help clarify any <unk> between the committee and administration + he points to a letter on his desk his second in a week from president bush saying that they do n't disagree + more broadly mr. boren hopes that panama will shock washington out of its fear of using military power + maybe this will jolt us out of the <unk> syndrome that we never are prepared to use force he says + maybe if every senator shared the principles of mr. boren + but it 's just as <unk> to argue that if even david boren can get mired in this sort of mess the problem goes beyond legal interpretation + maybe the problem is a political system that wo n't act without an exchange of letters that insists on running foreign policy by committee that <unk> a president as just another guy at the table + the <unk> of the <unk> and <unk> is that we ca n't abolish these oversight committees because we 've seen too many abuses of executive power + but panama illustrates that their substitute is a system that produces an absurd gridlock + the lawyers are now in charge of our national security + in panama the u.s. interests at stake were <unk> minor the only people killed were foreigners <unk> enough to trust american will + americans may not be so lucky the next time + i was impressed by the <unk> of your sept. N story rural enterprise tough row to <unk> + we lived in rural areas many years but now live in st. louis county <unk> + this morning as i drove the N miles to my law office and <unk> the routine heavy traffic during that <unk> <unk> i thought of how <unk> it was that we made the decision to be residents of an expanding community with so many opportunities and where so much is happening + the presence of so many people cars and competing businesses is evidence of a healthy economy in a place where people want to live + i thought back to our time in small <unk> <unk> communities + i remembered how hard it was for an outsider to become accepted by <unk> <unk> residents and what <unk> <unk> an original <unk> in <unk> that were long accustomed to <unk> safe ways of thought and action + i remembered being fired at age N with five children at home when my views and actions were deemed <unk> by a <unk> small-town employer + how difficult it is for a thinking person to live among <unk> rooted in the past + now i <unk> in the freedom culture activity and diversity of this great metropolitan area with its traffic <unk> and perpetual <unk> projects + yet when my youngest child died two years ago i buried him in the church cemetery of a small missouri town + so after all even the <unk> critic of rural exclusivity harbors a continuing <unk> for those scarce rural <unk> thought to exist amid fields <unk> and country <unk> + ronald edwin <unk> <unk> <unk> + finnish government officials are negotiating with creditors of waertsilae marine oy a major shipyard that filed for bankruptcy protection this week amid confusion and mounting doubts that collapse of the nation 's entire shipbuilding industry can be <unk> + at stake are almost N jobs in an industry that has been the mainstay of finland 's <unk> economic revival + shipbuilding became a point of pride as finnish <unk> remained profitable long after rivals collapsed all over europe + but if as many now fear waertsilae marine joins the ranks of failed <unk> it might turn out to be remembered most as a <unk> on finland 's international reputation + the shipyard 's N billion finnish <unk> $ N billion backlog includes about N ships ordered by big international shippers including three for carnival cruise lines inc + miami-based carnival said the first of the three ships is scheduled to be delivered next month just in time for the winter tourist season in the caribbean + the second ship is scheduled to be delivered in fall N and the third in fall N + one analyst said the first ship probably will be delivered close to schedule but that carnival may have to pay up to N N more to get the second and third ships + all the ships are covered by loan guarantees from a state export financing agency even though it 's not clear whether they will actually be built + bankers worry that if the government makes good a threat to withdraw its guarantee commitments shippers will counter with a <unk> of lawsuits + state loan guarantees are rarely a source of controversy + however some bankers cited possible parallels between the waertsilae marine case and the collapse of norway 's state-owned <unk> <unk> as two years ago + in that case international banks and investors incurred big losses because they incorrectly believed the company 's debt carried implicit state guarantees + doubts about the quality of state credit guarantees could reduce the competitive strength of finnish companies in world markets where financing often is the key to winning orders analysts warn + moreover state-owned finnish companies lacking formal state guarantees could face greater difficulty raising funds in international financial markets bankers say + the decision by a majority of <unk> waertsilae marine directors monday to file for bankruptcy was an abrupt <unk> from previous government policy + in august the government played a major part in a sweeping restructuring of the troubled shipyard + at the time <unk> by oy waertsilae a conglomerate the shipbuilding unit faced potential losses estimated at one billion <unk> and was on the brink of liquidation + under the rescue plan waertsilae sold N N of its stake to a group of banks and pension funds + the government in turn guaranteed financing to complete the order backlog and took control of the board + government officials were expected to combine waertsilae marine with two other struggling firms and thus ensure finland 's survival as a shipbuilding nation + the government spent most of last year attempting to carry out such a plan but was <unk> when the parent waertsilae concern pulled out at the last minute + after the restructuring of waertsilae marine and bolstered by state loan guarantees two big bank creditors union bank of finland and state-controlled <unk> resumed lending the shipyard working capital + but the bankers got cold feet recently as government officials complained they had been <unk> about the shipyard 's actual financial condition and hinted the credit guarantees might be withdrawn + people familiar with monday 's board meeting said it was the state 's refusal to <unk> <unk> the credit guarantees that led union bank and <unk> to halt lending to waertsilae marine + then in a <unk> <unk> <unk> directors voted to file for bankruptcy apparently under instructions from finland 's industry minister <unk> <unk> + analysts say mr. <unk> had grown increasingly worried about the state 's potential financial exposure as waertsilae marine 's losses <unk> to more than double the figure estimated in august + noting that sweden wound up <unk> state subsidies of about N billion swedish kronor $ N billion during the 1970s in a <unk> attempt to salvage its shipbuilding industry one analyst suggested that mr. <unk> may have decided to cut finland 's losses once and for all + senior ministry officials <unk> with creditors during the week in an attempt to agree on some form of restructuring that would keep waertsilae marine operating + the talks may drag on for weeks before any concrete result is announced people familiar with them said + one solution would be to sell the shipyard to an outsider + but there appear to be few if any suitors + indeed the potential losses make any rescue scheme unlikely unless the politicians once again change <unk> and agree to pick up the bill analysts said + meantime shippers with vessels on order from waertsilae marine will remain in limbo + turner broadcasting system inc. said it expects to report an extraordinary loss of about $ N million in the fourth quarter due to early retirement of debt + the cable <unk> said the loss will consist primarily of prepayment penalties and <unk> issue discount and costs related to its <unk> $ N billion refinancing of its long-term debt and some preferred stock in one of its subsidiaries + a turner spokesman would n't speculate on the extent of the charge 's effect on the quarter 's earnings but said the company continues to expect to report a net loss for N + the company said the repayment or redemption of the long-term debt and the outstanding class a cumulative <unk> preferred stock of cable news network was made possible by an offering of about $ N million of debentures and notes and $ N million in bank borrowings + the offering included $ N million of N N senior subordinated debentures due N and $ N million of zero coupon liquid yield option notes due N + the notes were priced to yield N N and are convertible into the company 's class b common stock at a price which represents a N N premium over the market price on oct. N N + in addition the company called its N N N senior subordinated notes due N with an <unk> principal amount of $ N million for redemption on dec. N + as a result of the refinancing the company said the interest on the debt will fall to slightly more than N N from slightly more than N N + in american stock exchange composite trading turner 's class a stock closed at $ N down N cents + general motors corp. said it will temporarily idle its <unk> texas assembly plant for one week beginning monday because of slow sales + the closing will affect about N workers and eliminate production of N cars + the assembly plant builds the cadillac <unk> chevrolet <unk> and <unk> <unk> <unk> <unk> + in addition gm 's truck & bus group said slow sales are forcing it to close its detroit assembly plant the week beginning monday + the plant builds <unk> for recreational vehicles and about N workers will be affected by the closing + the no. N auto maker scheduled overtime this week at its <unk> wis. assembly plant manufacturer of the chevrolet <unk> + the nine major u.s. auto makers plan to build N vehicles this week down N N from the N a year ago but N N higher than last week 's N + ford motor co. slated overtime again this week at its <unk> mich. wayne mich. kansas city mo. and norfolk va. assembly plants + they build the lincoln town car continental and mark <unk> the ford <unk> and <unk> pickup trucks + chrysler corp. scheduled overtime this week at its st. louis assembly plant no. N newark del. and sterling heights mich. assembly plants + they build extended minivans and the dodge spirit <unk> shadow and <unk> + d percentage change is greater than N N + e estimated + f includes chevrolet <unk> and toyota <unk> + r revised + x <unk> N figure includes <unk> <unk> through july + the surprise resignations of two top economic government officials <unk> more uncertainty on london 's financial markets which already have been <unk> under worries about britain 's ailing economy + the last thing markets like is uncertainty said ian <unk> chief economist at <unk> warburg & co. of the resignations of chancellor of the exchequer nigel lawson and chief economic adviser sir alan walters + i think you 'll see share prices go down and sterling now is under something of a cloud + the pound immediately began to take a <unk> after the resignations were announced + in late new york trading sterling stood at $ N down from $ N late wednesday + the british economy is hardly the picture of health these days + at N N base interest rates are the highest in eight years and the N N annual inflation rate is by far the highest in the european community + unions are pressing demands for wage increases of more than N N despite general belief that economic growth next year will be less than N N + increasingly the financial markets are reflecting the <unk> + the financial times 100-share index has dropped about N N from its N high of N on sept. N + yesterday even before the resignations were announced the index <unk> N points to close at N + we are expecting a recession says donald franklin chief economist at <unk> investment bank + the only question is how deep is it going to be + the outlook for corporate earnings is fairly bleak + it 's quite likely we 're going to get <unk> of the mid-october market shocks + red ink already has begun to flow in the wake of the <unk> market breaks of oct. N and oct. N + london-based <unk> holdings the largest <unk> of traders in the chicago options and futures markets said yesterday it will incur a <unk> loss as a result of the market plunge + the company which also will <unk> its <unk> dividend did n't specify the size + but company insiders estimated that the loss could approach the equivalent of $ N million + christopher <unk> <unk> chief executive said in an interview that the loss stemmed from the default of three options traders who had bet on a price rise in ual corp. shares before oct. N + the price plummeted after a proposed leveraged buy-out of the airline fell through + <unk> holdings shares plummeted N pence to close at N pence N cents a N N drop on london 's stock exchange + <unk> of london 's financial district are <unk> themselves for heavy <unk> + a lot more of our customers are staying until our N p.m. closing time says christopher brown managing director of <unk> & <unk> restaurants ltd. which runs five tony wine bars in the district + there 's a strong sense among the <unk> set that there 's more bad news to come asserts roger <unk> chief investment officer at morgan grenfell asset management + people in the stock market were very much thatcher 's children very young and wealthy <unk> + now it 's <unk> on them that they can be <unk> + the <unk> has created a <unk> <unk> for the <unk> days of the mid-1980s before a rash of <unk> mergers on the <unk> of the industry 's deregulation in N + people come to us saying they 'd like to be back where they were a few years ago in a more <unk> atmosphere with less tension says stephen <unk> managing director of hanover partners ltd. a financial district <unk> firm + but after trading losses in the mid-october market <unk> here many people will be lucky to have jobs at all executives predict + the industry which currently employs about N people in london has shed about N jobs over the past two years + i can see cuts of at least N N more says the head of the london office of a major u.s. firm + the mergers and acquisitions market has been a saving grace for the industry but uncertainties are beginning to mount even there + <unk> takeovers are expected to continue at their brisk pace + but investment bankers say that stock market uncertainties in the u.s. may cause many european companies to mark time before bidding for american companies in the hope that share prices will come down + if prices in the states go down industrial buyers in europe have the opportunity of getting reasonable prices in the u.s. says <unk> von <unk> chief of <unk> <unk> at credit suisse first boston ltd + but he adds everybody and his sister have opened up <unk> shops + it 's difficult to see that there 's going to be enough business to go around + about eight firms will get the lion 's share + at the others there are going to be a lot of disappointments after all those promises and all that big money that 's been paid to people + it all adds up to a cold winter here + says allen d. wheat head of trading at bankers trust co. people are just plain scared + one person who is past worrying about london 's blues is christopher <unk> + last summer he <unk> his 10-year career as a london <unk> and headed for the <unk> + he did n't stop until he got to jackson hole <unk> + i 'm glad to be out said the <unk> mr. <unk> in a phone interview + the percentage of your day spent <unk> your <unk> got greater and the work day kept getting longer + what am i doing in jackson hole + not a great deal + my wife and i will stay through the skiing season or until the money runs out whichever comes first + but unlike london out here i 've never heard anybody blow a car horn in anger + <unk> australia ltd. under pressure from bank lenders has called in accounting firm peat <unk> <unk> to help oversee asset sales and restructure the resorts and media company + analysts said the move could <unk> even <unk> action by the banks + but any move by the banks to take over qintex australia 's management could threaten its ability to operate its national television network under australian broadcast license rules + that in turn could substantially reduce the value of the television assets + the appointment of peat <unk> which has a unit that specializes in advising troubled companies came about as a result of a round of meetings held by qintex australia chairman christopher skase with bank creditors + yesterday mr. skase said the company is <unk> and with the continued support of its bankers is able to meet its financial commitments + qintex australia is a unit of qintex ltd + the qintex group 's problems began in <unk> in march when mr. skase agreed to buy mgm\/ua communications co + but the transaction faltered in september when qintex australia was forced to increase its offer to us$ N billion following a <unk> from rupert murdoch the deal fell apart altogether earlier this month + qintex australia owes creditors around a$ N billion + last friday qintex entertainment inc. its <unk> u.s. tv production and distribution affiliate filed for chapter N protection + the government is <unk> its newest weapon against white-collar defendants the power to prevent them from paying their legal bills + and defense lawyers are warning that they wo n't stick around if they do n't get paid + the issue has come to a <unk> in newark n.j. where federal prosecutors have warned lawyers for eddie antar that if the founder and former chairman of crazy eddie inc. is indicted the government may move to seize the money that mr. antar is using to pay legal fees + the warning by the u.s. attorney 's office follows two decisions by the u.s. supreme court last june + in those cases the high court ruled that federal law gives prosecutors broad authority to seize assets of people accused of racketeering and drug-related crimes including fees paid to lawyers before an indictment + if the government succeeds in <unk> mr. antar 's assets he could be left without <unk> legal representation because his attorneys are likely to quit according to individuals familiar with the case + a seizure also would make the case the largest and one of the first in which lawyers ' fees have been confiscated in a prosecution unrelated to drugs + the people who suffer in the short run are defendants but the people who suffer in the long run are all of the people because there wo n't be a vigorous private bar to defend the bill of rights says gerald <unk> a criminal defense attorney who says he has turned down a number of cases to avoid possible fee seizures + mr. antar is being investigated by a federal grand jury in newark where prosecutors have told him that they may soon seek an indictment on racketeering and securities fraud charges + under the <unk> influenced and corrupt organizations law or rico the government has the authority to seek to freeze or seize a defendant 's assets before trial + according to individuals familiar with mr. antar 's case prosecutors issued their warning this week after one of mr. antar 's attorneys asked whether legal fees might be subject to seizure + in a letter prosecutors told mr. antar 's lawyers that because of the recent supreme court rulings they could expect that any fees collected from mr. antar may be seized + prosecutors have told mr. antar 's attorneys that they believe mr. antar 's allegedly <unk> gains are so great that any money he has used to pay attorneys <unk> from illegal activities + therefore they said the money can be taken from the lawyers even after they are paid + justin <unk> and jack <unk> attorneys for mr. antar both declined to comment on the matter + in newark u.s. attorney samuel a. <unk> said i do n't think there 's any legal reason to limit forfeiture of attorney 's fees to drug cases + mr. <unk> said his office just responded to an attorney 's question about whether we would go after attorney 's fees and that is different from actually doing it although we reserve that right + mr. antar was charged last month in a civil suit filed in federal court in newark by the securities and exchange commission + in that suit the sec accused mr. antar of engaging in a massive financial fraud to <unk> the earnings of crazy eddie edison n.j. over a three-year period + through his lawyers mr. antar has denied allegations in the sec suit and in civil suits previously filed by shareholders against mr. antar and others + the sec has alleged that mr. antar aimed to pump up the company 's stock price through false financial statements in order to sell his stake and reap huge profits + mr. antar the sec said made more than $ N million from the sale of his shares between N and N + the justice department has emphasized that the government 's <unk> power is to be used <unk> + according to department policy prosecutors must make a strong showing that lawyers ' fees came from assets tainted by illegal profits before any attempts at seizure are made + still criminal defense lawyers worry that defendants are being deprived of their sixth amendment right to counsel and a fair trial if the government can seize lawyers ' fees + they also worry that if the government applies <unk> laws broadly the best defense lawyers will be unwilling to take criminal cases unless they are assured of being paid + the stock market correction of oct. N N was a grim reminder of the oct. N N market collapse + since like earthquakes stock market <unk> will always be with us it is prudent to take all possible <unk> against another such market collapse + in general markets function well and adjust smoothly to changing economic and financial circumstances + but there are times when they seize up and <unk> sellers can not find buyers + that 's just what happened in the october N crash + as the market tumbled <unk> market conditions prevailed the margins between buying bids and selling bids widened trading in many stocks was suspended orders took <unk> long to be executed and many specialists stopped trading altogether + these failures in turn contributed to the fall in the market averages uncertainty <unk> an extra risk premium and <unk> triggered additional selling pressures + the situation was like that of a <unk> who is thrown slightly off balance by an unexpected <unk> on the <unk> + his <unk> spread <unk> and <unk> apart just as <unk> spreads widen during a financial panic and soon he is out of control + unable to stop his accelerating <unk> he crashes + after the N crash and as a result of the recommendations of many studies circuit breakers were devised to allow market participants to <unk> and restore orderly market conditions + it 's doubtful though whether circuit breakers do any real good + in the additional time they provide even more order imbalances might pile up as would-be sellers finally get their broker on the phone + instead an appropriate institution should be charged with the job of preventing chaos in the market the federal reserve + the availability of timely assistance of a <unk> can help markets retain their resilience + the fed already buys and sells foreign exchange to prevent <unk> conditions in foreign-exchange markets + the fed has assumed a similar responsibility in the market for government securities + the stock market is the only major market without a <unk> of <unk> liquidity or a buyer of last resort + this does not mean that the federal reserve does not already play an important indirect role in the stock market + in N it pumped billions into the markets through open market operations and the discount window + it lent money to banks and encouraged them to make funds available to brokerage houses + they in turn lent money to their customers who were supposed to recognize the opportunity to make a profit in the turmoil and buy shares + the fed also has the power to set margin requirements + but would n't it be more efficient and effective to supply such support to the stock market directly + instead of flooding the entire economy with liquidity and thereby increasing the danger of inflation the fed could support the stock market directly by buying market averages in the futures market thus stabilizing the market as a whole + the stock market is certainly not too big for the fed to handle + the foreign-exchange and government securities markets are <unk> larger + daily trading volume in the new york foreign exchange market is $ N billion + the daily volume for treasury securities is about $ N billion + the combined value of daily equity trading on the new york exchange the american stock exchange and the nasdaq over-the-counter market ranges between $ N billion and $ N billion + the $ N billion the fed <unk> into the money markets after the N crash is more than enough to buy all the stocks traded on a typical day + more carefully targeted intervention might actually reduce the need for government action + and taking more direct action has the advantage of avoiding sharp increases in the money supply such as happened in october N + the fed 's stock market role ought not to be very ambitious + it should seek only to maintain the <unk> of markets not to <unk> up the dow jones or new york stock exchange averages at a particular level + the fed should guard against <unk> risk but not against the risks inherent in individual stocks + it would be inappropriate for the government or the central bank to buy or sell ibm or general motors shares + instead the fed could buy the broad market <unk> in the futures market + the increased demand would <unk> trading and stabilize prices + stabilizing the derivative markets would tend to stabilize the primary market + the fed would eliminate the cause of the potential panic rather than attempting to treat the <unk> the liquidity of the banks + <unk> market conditions could be observed quite frequently in foreign exchange markets in the 1960s and 1970s + but since the member countries of the international monetary fund agreed to the guidelines to floating in N such difficulties have been avoided + i can not recall any <unk> in currency markets since the N guidelines were adopted + thus the mere existence of a <unk> agency helps to avoid panic in <unk> + the old saying advises if it ai n't broke do n't fix it + but this could be a case where we all might go broke if it is n't fixed + mr. heller now at visa international was a governor of the federal reserve board from N until earlier this year + this is adapted from a speech to the commonwealth club in san francisco + bank of england governor robin <unk> urged banks to be cautious in financing leveraged buy-outs + caution should be the rule of the day said mr. <unk> in a speech to the association of corporate <unk> ' annual dinner + it would be damaging to industry and to the financial sector in general to say nothing of banks if <unk> does not guide the financing of leveraged transactions + his remarks were distributed to the press before chancellor of the exchequer nigel lawson announced his resignation last evening + bank of england officials said the central bank had no comment on mr. lawson 's resignation + mr. <unk> reiterated that the exposure of united kingdom banks to leveraged deals have n't yet reached worrying levels + however in light of the risks involved in such transactions banks should satisfy themselves that they have the skills to participate in this market and clear policy guidelines on acceptable levels of exposure to such transactions he said + in other comments he said takeovers may not always be the most efficient way of <unk> a change of corporate direction or strategy + a similar result could sometimes be achieved at less cost by changing <unk> he said + intel corp. 's most powerful computer chip has flaws that could delay several computer makers ' marketing efforts but the bugs are n't expected to hurt intel and most computer makers + computer experts familiar with the flaws found in intel 's N chip say the defects do n't affect the average user and are likely to be cleared up before most computers using the chip as their brains appear on the market sometime next year + intel said that last week a customer discovered two flaws in its N microprocessor chip 's <unk> unit a set of circuits that do certain calculations + on friday intel began <unk> customers about the bugs which cause the chip to give wrong answers for some <unk> calculations + but while international business machines corp. and compaq computer corp. say the bugs will delay products most big computer makers said the flaws do n't affect them + bugs like this are just a normal part of product development said richard <unk> director of hewlett-packard co. 's advanced systems development + <unk> announced last week that it planned to ship a computer based on the N chip early next year + these bugs do n't affect our schedule at all he said + likewise <unk> research inc. and sun microsystems inc. said the bugs wo n't delay their development of <unk> machines + we have n't modified our schedules in any way said a sun spokesman + to switch to another vendor 's chips would definitely not be an option he said + nonetheless concern about the chip may have been responsible for a decline of N cents in intel 's stock to $ N a share yesterday in over-the-counter trading on volume of N shares and partly responsible for a drop in compaq 's stock in new york stock exchange composite trading on wednesday + yesterday compaq plunged further closing at $ N a share off $ N a share on volume of N shares + most of compaq 's decline is being attributed to a third-quarter earnings report that came in at the low end of analysts ' expectations + intel said it had corrected the problems and would start producing <unk> chips next week + we should not be seeing any more said bill rash intel 's director for the N chip + what 's more the bugs only emerge on <unk> applications such as <unk> design and scientific calculations he said and then very seldom + these <unk> do not affect business programs he said + the bugs will cause problems in specific and rare circumstances that will not occur in typical applications such as <unk> and <unk> said michael <unk> editor of the microprocessor report an industry newsletter + sun hewlett-packard and others say intel is n't wholly to blame for the <unk> + the real <unk> they said are computer makers such as ibm that have jumped the gun to unveil <unk> products + the reason this is getting so much <unk> is that some started shipping and announced early availability said hewlett-packard 's mr. <unk> + you can do that but you 're taking a risk + those companies are paying the price for taking the risk + in late september ibm began shipping a <unk> card that <unk> its <unk> model <unk> from a N machine to an N machine + an ibm spokeswoman said the company told customers monday about the bugs and temporarily stopped shipping the product + ibm has no plans to recall its <unk> cards the spokeswoman said and could probably <unk> the bugs without long product delays + we do n't look at this as a major problem for us she said + compaq which said it discovered the bugs still plans to announce new N products on nov. N + because of the <unk> however the company said it does n't know when its machine will be <unk> available + that 's a break from compaq tradition because the company does n't announce products until they 're actually at the dealers + the problem is being <unk> experts say because the N is intel 's future flagship + intel 's microprocessors are the chips of choice in many of today 's personal computers and the N microprocessor is the <unk> of the company 's bid to guard that spot in the next generation of machines + although these sorts of bugs are not at all uncommon the N is an extremely <unk> product said mr. <unk> the newsletter editor + intel 's N chip is the <unk> of intel 's microprocessors a <unk> <unk> chip that only the most <unk> computer users are likely to buy for at least several years + unveiled last april the chip <unk> N million <unk> on a <unk> of silicon more than four times as many as on intel 's earlier model N + intel <unk> the chip 's speed at N million instructions per second or mips + that 's four times as fast as the N + machines using the N are expected to challenge <unk> work stations and minicomputers in applications such as so-called <unk> which <unk> groups of computers together and in <unk> design + but while the chip 's speed in processing power is <unk> it 's real strength lies in its software <unk> + the N is the <unk> of a long series of intel chips that began <unk> the market ever since ibm picked the <unk> N chip for its first personal computer + a <unk> microprocessor processes N pieces of data at a time and is slower than newer <unk> chips + since then intel has <unk> a large part of the market with <unk> generations of <unk> and <unk> chips all of which can run software written for previous models + that 's what will keep computer makers coming in spite of the <unk> of bugs + big personal computer makers and many makers of engineering workstations are developing <unk> machines which are expected to reach the market early next year + of the big computer makers only apple computer co. bases its machines on motorola chips instead + the N is going to have a big impact on the industry said hewlett-packard 's mr. <unk> + it 's going to be the leading edge technology in personal computers for the next few years + this <unk> is not going to have any affect on that at all + andy <unk> in dallas contributed to this article + bethlehem steel corp. has agreed in principle to form a joint venture with the world 's second-largest steelmaker <unk> of france to modernize a portion of bethlehem 's ailing <unk> division + the venture which involves adding sophisticated equipment to make <unk> mill rolls is part of a <unk> effort to shore up a division that has posted continuing operating losses for several years + the other element includes consolidating <unk> 's <unk> operations + the entire division employs about N workers + while the joint venture affects only a small part of bethlehem 's operations it is significant because it marks the first time the nation 's no. N steelmaker has joined forces with a foreign partner + wall street analysts have criticized bethlehem for not following its major competitors in linking with a foreign company to share costs and provide technology to modernize old facilities or build new ones + we think it 's a step in the right direction for bethlehem said <unk> <unk> <unk> group 's international steel analyst + it 's important to share the risk and even more so when the market has already peaked + he said the move could be the beginning of a broader relationship between the two companies one that could open up new markets for bethlehem + bethlehem had little choice but to go with a european steelmaker because its competitors already have tapped the japanese and south korean industry leaders analysts noted + under terms of the agreement <unk> 's <unk> unit and bethlehem would establish a <unk> facility to make <unk> mill rolls at the company 's <unk> shop here + terms for the venture which would be jointly owned by both companies were n't disclosed + the <unk> unit has agreed to provide technology and expertise to install a so-called spin <unk> by early next fall + the <unk> improves the <unk> quality of the iron mill rolls which are basically huge rolling <unk> used to <unk> or shape steel products + bethlehem is also working with the united steelworkers union to consolidate <unk> 's two machine shops and four <unk> facilities of the <unk> operations + once the consolidation is complete bethlehem plans to concentrate its <unk> business on nuclear fabrication <unk> steel and <unk> steel rolls for rolling mills and selected <unk> applications + bethlehem said earlier this year that it planned to restructure the <unk> division to improve its cost structure + in the second quarter bethlehem posted a $ N million charge related to its plans to <unk> the division + if you 're still wondering about the causes of the slump in the junk-bond market consider the case of columbia savings & loan + the california thrift has just announced a $ N million third-quarter loss + how did this happen + well when congress in its recent s&l bailout mandated that the thrifts sell off all their junk-bond holdings by N it not only artificially increased the supply of these bonds in the market but also eliminated one of the few profitable investments thrifts have made + but there is a <unk> ironic twist to the columbia loss + as <unk> of the debate over a capital-gains tax cut know there is much talk in congress and indeed all over washington about the need to encourage long-term investment and discourage the financial sector 's presumed <unk> with the short term + now we regard this as a largely phony issue but the long term is nonetheless a big salon topic all around the <unk> + it turns out that columbia had this huge loss in large part because the new <unk> mandated rules forced it to adjust the book value of its <unk> junk bonds to the lower of either their cost or market value + they could no longer be classified as what columbia regarded them namely long-term investments + congress 's <unk> treatment of the existing structure of junk-bond holdings <unk> us of a story in the journal earlier this year about the baby bell companies ' desire to have the <unk> bans lifted on offering information services + the issue of seeking relief from congress was raised to <unk> <unk> the chairman of nynex + mr. <unk> replied legislation tends to be <unk> + i believe we have to take a shot at getting as much done as we can through the court through justice and through state and federal regulatory agencies + i see congress as a last resort + healthy thrifts such as columbia or the junk-bond market itself should have been so lucky + the reality of life in modern america is that if you want to <unk> something that works let it fall into the hands of congress + exxon corp. said it will move its headquarters from manhattan to dallas + most of the N employees at the oil company 's <unk> headquarters building including much of senior management were <unk> of the plan until informed at a morning meeting by chairman lawrence g. <unk> + the shift wo n't affect operations + as part of its restructuring several years ago exxon moved most of those out of the city and sold its <unk> rockefeller center <unk> to a japanese company + but the pullout is an embarrassment to new york city officials coming at a time of high office building vacancy rates and departures by other major companies + mobil corp. is in the process of <unk> its headquarters here and huge operations like j.c. penney & co. and trans world airlines have recently left + new york authorities informed yesterday about the move reacted with concern and even some anger to the idea of the nation 's third-largest corporation leaving without giving them an opportunity to accommodate it + we are <unk> but there 's nothing we can do about it now said stanley <unk> new york city deputy mayor for finance and economic development + meanwhile dallas welcomed the move + city officials there had been were aware that a large company was moving in but negotiations had all been conducted through a law firm and under the code name <unk> + when we were told it was exxon it was beyond all expectations what a coup said tom lewis senior vice president of dallas partnership the economic development affiliate of the city 's chamber of commerce + dallas its economy based on oil and real estate has been in a slump + exxon said it will build a new headquarters on a <unk> <unk> in the <unk> las <unk> complex in the suburb of irving + until the building is completed exxon will rent part of an existing office tower + las <unk> once a huge texas ranch is a <unk> complex of office buildings homes and recreational facilities that its developers have been struggling to <unk> in recent years + exxon officials said it will cost less to run its headquarters at las <unk> than in new york + the company wo n't say how much it will save but during at its interim location sources say it will likely pay rent of $ N to $ N per square foot + owners of the building in new york say they will be asking $ N per square foot for rent to fill the space that exxon is <unk> + in texas taxes and development costs are also lower they said + plus one exxon official said by eliminating the typically long new york <unk> between office and home management will expect employees to work N hours a week in dallas rather than a <unk> work week in new york + canadian production of market pulp rose N N in september from a year earlier as the industry operated at N N of capacity + the canadian pulp and paper association an industry group said canadian mills produced N metric tons of market pulp in september compared with N metric tons a year earlier + market pulp is wood pulp sold on the open market to producers of paper and other products + the statistics exclude pulp consumed at the producing mill or shipped to another mill that is affiliated with the producing mill + canada is the world 's largest producer of market pulp + the september N N operating rate compared with a rate of N N in august but was unchanged from a year earlier + in the first nine months of this year output was N metric tons down from N metric tons a year earlier + ima holdings corp. completed its $ N billion acquisition of american medical international inc. purchasing N million shares or N N of the los angeles-based health-care services concern for $ N a share + the price also includes assumption of about $ N billion in debt + ima is a group that includes first boston corp. and the <unk> family of chicago through the leveraged buy-out fund harry gray <unk> klein & partners + harry j. gray and <unk> n. klein along with five other ima <unk> were named to join american medical 's <unk> board + the completion of the merger agreement follows months of <unk> and turns + in january american medical brought in a new chief executive officer richard a. <unk> N who will remain as chairman president and chief executive + a few days later american medical announced sharply lower earnings taking charges of $ N million for insurance reserves and canceled real estate leases + in march american medical received a $ <unk> offer to take the company private from an investor group including large holder m. lee pearce + it also was considering a restructuring to help boost the stock price + a group including several members of the the bass family of texas urged the company to take some steps to maximize shareholder value + the following month the company put itself up for sale + it received more offers but the auction was surprisingly won by ima which bid $ N a share and asked mr. <unk> to stay on as an equity participant + he indicated that some assets might be sold off to service the debt + then after extending its offer four times waiting for a congressional tax ruling ima early this month lowered its offer to $ N a share amid turbulence in the junk bond market + american medical accepted the offer meanwhile indicating it had heard from two other suitors + but they never materialized and ima completed the purchase yesterday + other new board members include john s. harrison and mark a. <unk> of first boston james f. <unk> william s. goldberg and harold s. <unk> + treasury secretary nicholas brady said that congress should grant the securities and exchange commission the power to close the stock markets in periods of crisis + in testimony to the senate securities subcommittee mr. brady disputed the view of sec chairman richard breeden who told a house panel wednesday that he does n't want the ability to halt the markets + mr. breeden contended that discretionary power could have an impact on the markets if rumors were to <unk> about when the exchanges might be closed + he added that the president already has the power to close the markets in an emergency + but mr. brady argued that the sec is closer to the markets and in a better position to understand when the exchanges are under such stress that they should be closed + separately mr. brady said he asked the working group on financial markets to determine whether futures margins are too low + he noted that some minimum margin requirements have been reduced to levels below those before the N crash + this raises questions whether futures and equity margin requirements are consistent at these levels and whether futures margins are adequate mr. brady said + margins are the amount of money an investor needs to put up to buy or sell a futures contract + margins on the futures exchanges typically are raised and lowered according to market volatility + the chicago mercantile exchange margins for the standard & poor 's N stock-index futures stood at $ N a contract for speculators and $ N for <unk> before oct. N N that day the hedging margin was raised to $ N + margins were raised or lowered about a dozen times since the crash oct. N N + currently they stand at $ N for speculators who are typically individuals and <unk> traders and $ N for <unk> which are usually institutions and have offsetting positions in the underlying stocks + mr. brady also said he expects the leveraged buy-out phenomenon to end under its own weight + asked whether there is anything congress should do to curb the lbo boom mr. brady responded i think the lbo phenomenon while it wo n't stop completely will be a thing of the past + before taking any action he advised the panel to see what the market has produced as a cure + mr. brady also agreed with senators ' concerns about recent stock-market volatility and said he <unk> that the gyrations are scaring investors from investing in stocks + but he added that individuals still are participating in the equity market indirectly through mutual funds and pension funds + the former wall street executive refused to offer an opinion on the controversy surrounding program trading which has recently become a larger part of the trading in the market and has been blamed for accelerating the drop two weeks ago + i do not have a view of whether we should do anything about program trading at this time he said + but mr. brady endorsed the <unk> bill that both houses of congress will try to push through this session + that bill proposed by the sec last year would require brokerage firms to disclose the financial positions of their holding companies mandate large traders ' reporting of program or block trades and improve clearing and settlement of trades between the futures and stock markets + the bill also would give the sec the power to close the markets a discretion that former sec chairman david <unk> wanted but mr. breeden does n't + mr. brady and senators agreed to have their staffs meet within the next week to start <unk> the bill + the senate agriculture committee is responding to trading abuses in the futures markets with a far-reaching bill that would become the futures trading practices act of N + the proposed legislation has a <unk> goal to assure the integrity of the u.s. futures markets + however as is common with sweeping legislation the proposal contains many provisions that could destroy important parts of the system it sets out to preserve + the complex bill introduced by sens. patrick <unk> d. <unk> richard <unk> r. ind. and bob <unk> d. neb. covers a wide range of provisions that would affect the funding and authority of the commodity futures trading commission and would <unk> change the way the industry is regulated + these include provisions relating to the technology and systems that must be employed by exchanges oversight and disciplinary procedures for exchange trading practices the relationship between commodity brokerage firms and floor traders and exchange <unk> + the bill also <unk> even minor rule <unk> to <unk> and provides for recovery of punitive damages in civil lawsuits and arbitration cases without any showing of willful misconduct + many aspects of the bill are <unk> providing appropriate public <unk> that can and should be instituted throughout the industry + indeed some of the bill 's requirements including broad representation on the exchanges ' boards of directors and strong measures to prevent conflicts of interest already have been put in place by the coffee sugar & cocoa exchange and other futures exchanges + other aspects of the bill however are either structured in ways that create unnecessary burdens for the industry or actually are harmful to the exchanges the industry and ultimately the general public + one of the most prominent features is the requirement that in three years all exchanges have in place a system that records all trades by a source independent of the executing broker + the new york futures exchanges have been working together to develop a trade recording system much like the one called for in the bill + we would be <unk> to have such a system in place today + but is it realistic for congress to mandate by a rigid deadline a system that has not yet been <unk> to <unk> studies + what if the system does n't work + what if the only system that does work is so expensive that at best only the largest exchanges can afford it + cost is a key consideration because of the global sweep of the financial markets + the u.s. futures exchanges compete world-wide as never before + today trading in almost any commodity can be diverted from u.s. markets with just a few strokes of a <unk> + all foreign markets are aggressively <unk> u.s. business + in fact several london markets already offer lower costs for trading in the same or very similar contracts + the u.s. exchanges need both market integrity and <unk> long-term growth depends on it + the senate bill contains many provisions that will increase the costs of trading + the most <unk> of these is the <unk> of service fees which will directly widen the cost spread between u.s. and foreign markets + other provisions have a more <unk> but nonetheless real and <unk> effect on the international position of u.s. exchanges + these include the extension of liability into areas beyond those established by judicial precedent and the expansion of liability to include punitive damages + in addition to increasing costs as a result of greater financial exposure for members these measures could have other far-reaching <unk> + one section of the bill would make all commodity brokerage firms and floor brokers liable for damages without willful misconduct + nowhere in the federal securities law is simple negligence or <unk> action a source of liability under similar circumstances + it is only logical to assume that the enactment of this provision will lead to increased litigation + in an already <unk> business commodity brokerage firms may well decide to eliminate the risk and expense of dealing with the retail public <unk> the private individual of access to the markets + another measure makes commodity brokerage firms liable for violations committed by independent floor brokers who execute trades for them + this <unk> concept would <unk> these firms to potentially <unk> punitive damages + faced with the virtually impossible task of <unk> the execution of each trade many commodity brokerage firms are likely to stop doing business with <unk> and instead hire their own <unk> floor brokers + this would force out of business many of the individuals and small firms that function as floor brokers + a consequence of their departure could be a serious <unk> of market liquidity + finally under the bill a number of legitimate longstanding business practices would be <unk> banned unless the cftc were to take specific and timely action to permit them to continue + in other words regulation will occur through <unk> and <unk> rather than through a normal <unk> procedure + the affected practices include the placing of oral orders which is the way most public customer orders are placed and trading between affiliated brokers even though in some cases trading with affiliates may be the only way to obtain the best execution for a client + also <unk> would be dual trading <unk> a broker trades for customers as well as his own account a practice that provides needed liquidity to the markets + all u.s. futures exchanges agree that these and other trading practices require proper regulation and supervision + nonetheless each has too much potential value to the system to be banned by legislative fiat before the cftc carefully considers all the consequences of a ban and what the regulatory alternatives are + the markets are complex as is the environment in which they function + when problems surface the temptation becomes strong to <unk> overhaul a market system that has served for more than N years + that temptation must be put aside to permit careful consideration of all the implications positive and negative of the proposed resolutions to those problems and to avoid creating a marketplace where no one trades + mr. <unk> is chairman of the coffee sugar & cocoa exchange in new york and director of commodity administration at shearson lehman hutton + initial claims for state unemployment benefits fell to a seasonally adjusted N for the week ended oct. N from N the previous week the labor department said + the number of people receiving state benefits in the week ended oct. N fell to a seasonally adjusted N or N N of those covered by unemployment insurance from N the previous week when the insured unemployment rate was N N + counting all state and federal benefit programs the number of people receiving unemployment benefits in the week ended oct. N fell to N from N a week earlier + these figures are n't seasonally adjusted + on the <unk> streets of <unk> mahfouz 's cairo life is nasty <unk> and <unk> entertaining + <unk> the <unk> <unk> the <unk> of <unk> <unk> and takes a cut of every cent they <unk> + <unk> <unk> <unk> is a card <unk> and <unk> dealer who has a simple <unk> i live in this world assuming that there is no <unk> god or police + for the killer and thief said <unk> fame flows from the barrel of a gun + one man said you act as a <unk> a <unk> tells him a diversion to relieve people 's <unk> + mr. mahfouz 's cairo also has <unk> <unk> and <unk> wives who look to god not crime for their <unk> + but it is his portrait of cairo <unk> of <unk> and <unk> <unk> of streets filled with dust <unk> <unk> and animal <unk> that made his reputation and won him the nobel prize in N + three novels the beginning and the end N pages $ N the thief and the dogs N pages $ N and <unk> song N pages $ N recently published by <unk> offer an <unk> sample of the <unk> mr. mahfouz 's talent + but they do show the range of a <unk> <unk> whose <unk> novels span five decades and include work of social <unk> protest and <unk> + they also chart the evolution of a city that has grown tenfold in the author 's lifetime from a colonial <unk> of <unk> <unk> to a third world <unk> <unk> on its own refuse + soon it 'll be so crowded a <unk> complains that people will start eating each other + the beginning and the end easily the best of the three belongs to mr. mahfouz 's realistic period and it is the one for which he is most <unk> + published in N it follows the decline of a cairo family with the <unk> sweep and rich detail that critics often compare to <unk> <unk> and <unk> + a minor bureaucrat dies suddenly <unk> his family to poverty and eventual <unk> + his daughter turns to <unk> then to peddling herself for a few <unk> + one son <unk> his own career so that his <unk> brother can succeed while another helps support the family with money <unk> from crime + the real tragedy though lies not in the family 's circumstances but in its concern for appearances + <unk> for the father is <unk> by the shame of <unk> him in a <unk> 's grave + the family moves to another house at night to <unk> <unk> <unk> from neighbors + and the successful son wishes his embarrassing <unk> dead + as a <unk> of middle-class <unk> the story is <unk> + but its <unk> <unk> of cairo life are vintage mahfouz + we see <unk> and hear <unk> filled with the <unk> of <unk> advertising their <unk> <unk> with <unk> language <unk> <unk> and the sound of people gathering <unk> in their <unk> and <unk> into the street + and we meet engaging <unk> such as <unk> the head <unk> for his <unk> fights his <unk> and his <unk> + god has not yet <unk> that i should have earnings he tells his worried mother + <unk> comes to a bad end but so does almost everyone else in the book + if the setting is exotic the <unk> is closer to <unk> 's <unk> <unk> than it is to <unk> nights + mr. mahfouz began writing when there was no <unk> tradition in <unk> and he <unk> his work on western <unk> + in one sense this limits him unlike a writer such as <unk> garcia <unk> who has a distinctive latin voice mr. mahfouz 's style offers little that can be labeled egyptian + but the <unk> of his style also makes his work accessible as the streets of cairo come alive for the western reader as <unk> as <unk> 's london or <unk> 's st. <unk> + the thief and the dogs written in N is a <unk> psychological drama <unk> of crime and punishment + its <unk> said <unk> is an egyptian <unk> who seeks <unk> in <unk> and killing + i am the hope and the dream the redemption of <unk> he says in one of many interior <unk> + later he recalls the words of his marxist <unk> the people theft the <unk> fire + said 's story reflects the <unk> of socialism under <unk> whose <unk> rule replaced the <unk> <unk> in N + by N mr. mahfouz 's <unk> had <unk> or become <unk> as it has in said + his <unk> dream of <unk> a life of badly aimed bullets by <unk> the real <unk> the rich dogs who <unk> on the poor leads only to the death of <unk> and eventually to his own + cairo 's <unk> <unk> also has gone gray + here the city is dark and <unk> with <unk> said has left his jail cell only to enter the larger prison of cairo society + while the theme is compelling the plot and characters are not + we never care about said or the <unk> he <unk> + the thief and the dogs is a <unk> work the first <unk> novel in <unk> but it is likely to <unk> western readers + the N novel <unk> song also is experimental and another badly aimed bullet + the story of a playwright 's stage debut <unk> in <unk> <unk> in the manner of <unk> 's the sound and the <unk> + but the device <unk> more than it <unk> + buried in the work is a <unk> on the <unk> of art and on the struggle for integrity in an unfair world + but again the themes get <unk> in mr. mahfouz 's <unk> <unk> + the <unk> of his later work reflects both an appetite for new <unk> and the hazards of art in the arab world + mr. mahfouz has been <unk> and <unk> for questioning <unk> and <unk> peace with israel + <unk> his message has helped him endure + art says the playwright in <unk> song is the <unk> for the action that an <unk> like me is unable to take + <unk> song gives <unk> of a cairo that has become so much <unk> since his youth when as he once said the poorest person was able to find his daily bread and without great difficulty + the clutter of the <unk> remains but its color has <unk> away and the will to overcome has been defeated + cars ca n't move because of <unk> <unk> + characters complain <unk> about food <unk> prices and corruption + and the <unk> <unk> <unk> is now a <unk> and <unk> man who <unk> only government ministers can afford it these days + having lost their faith in god in social reform and in <unk> <unk> are left with nothing but their sense of humor + mr. <unk> is a journal staff reporter covering the middle east + norwood partners limited partnership of boston said it may make a tender offer for some or all of phoenix technologies ltd. 's common shares + norwood <unk> phoenix a <unk> maker of software for personal computers has had substantial losses in the past two quarters + its stock which was as high as $ N a share has been trading under $ N a share recently + yesterday it closed at $ N a share up $ N in national over-the-counter trading + in a securities and exchange commission filing norwood said it 's part of a group that holds N phoenix technologies common shares or a N N stake + norwood has made no detailed plans but it has engaged in talks with other shareholders the filing said + phoenix declined to comment + norwood is controlled by daniel l. barnett and paul a. <unk> both officers of <unk> <unk> capital management inc. a small boston money management firm + also involved in the group is robert f. angelo formerly phoenix 's senior vice president field operations who left phoenix at the beginning of october + mr. angelo was described in the filing as a consultant to <unk> + weirton steel corp. said it reached a tentative agreement on a <unk> labor contract with the independent steelworkers union covering production and maintenance employees + the agreement subject to approval of union members would cover about N workers + the tentative agreement provides for wage increases of N cents an hour <unk> to sept. N N and for increases of N cents N cents and N cents an hour effective jan. N N N and N respectively + it also provides for benefit adjustments including a partial restoration of <unk> and holidays as well as <unk> changes to increase productivity + ground zero of the hud scandal is the secretary 's discretionary fund a <unk> pot used to fund projects that were n't approved through normal hud channels + jack kemp wants to abolish it + instead congress 's idea of reform is to increase this <unk> fund by $ N million + and transfer control of much of it to capitol hill + the hud scandals will simply continue but under new <unk> + after one of the most amazing debates we 've ever seen on the cable channel <unk> the house voted N to N on wednesday to order $ N million in spending for a new jersey arts center a michigan library and N other pet projects out of the same discretionary fund that was supposed to have been so abused during sam <unk> 's tenure + hud has no paper work <unk> on N of the projects none of the others has been approved and not a single congressional hearing has been held on any of them + however four are in the michigan district of rep. bob <unk> the chairman of the house subcommittee that writes the hud spending bill + of course this kind of <unk> congressional <unk> is called <unk> service by members while the same kind of <unk> <unk> at hud is labeled influence peddling + unlike those awful republican consultants members do n't profit directly from hud projects + they merely collect campaign contributions from developers that help keep them in office + the N pet projects were discovered buried in the appropriations bill for hud and some other agencies after it returned from a conference committee that was called to resolve differences between the house and senate versions + conference committees are breeding grounds for <unk> + they are often closed to the public and no minutes are taken + members find it easy to doctor legislation by slipping in special provisions that could never survive in the cold light of day + in this case the members <unk> themselves + rep. <unk> recently purchased an <unk> building lot on the island + this is slightly adapted from remarks oct. N by former secretary of state george p. <unk> to an <unk> gathering at the stanford business school where he has returned to the faculty + i was struck a couple of years ago by the <unk> effort in the <unk> + we had <unk> during the year an estimated $ N billion street value of cocaine + i do n't know how much got through + nobody has any credible estimate + the gnp of the <unk> is probably somewhere between one and two billion dollars + so you get an idea of the leverage there and elsewhere that our market for drugs has brought about + i welcome the emphasis that is now being put on the drug problem + the efforts to get to the people who are <unk> try to <unk> them if they can not be <unk> at least to contain them to educate people to strongly discourage use of drugs by people who are casual users and first users to stop this process among the young all of these things i think are extremely important + but i have to tell you that it seems to me that the conceptual base of the current program is flawed and the program is not likely to work + the conceptual base a <unk> approach is the same that i have worked through before in the nixon administration when i was budget director and secretary of the treasury with jurisdiction over the customs + we designed a comprehensive program and we worked hard on it + in the reagan administration we designed a comprehensive program we worked very hard on it + our international efforts were far greater than ever before + you 're looking at a guy whose <unk> was attacked in <unk> by the drug <unk> so i 'm personally a veteran of this war + what we have before us now is essentially the same program but with more resources <unk> into all of the efforts to enforce and control + these efforts wind up creating a market where the price <unk> exceeds the cost + with these incentives demand creates its own supply and a criminal network along with it + it seems to me we 're not really going to get anywhere until we can take the <unk> out of the drug business and the incentives for <unk> out of it + frankly the only way i can think of to accomplish this is to make it possible for <unk> to buy drugs at some regulated place at a price that <unk> their cost + when you do that you wipe out the criminal incentives including i might say the incentive that the drug <unk> have to go around and get kids <unk> so that they create a market for themselves + they wo n't have that incentive because they wo n't have that market + so i think the conceptual base needs to be thought out in a different way + if i am catching your attention then read a bold and <unk> article in this september 's issue of science by <unk> <unk> on this subject + we need at least to consider and examine forms of controlled <unk> of drugs + i find it very difficult to say that + sometimes at a reception or <unk> party i advance these views and people head for somebody else + they do n't even want to talk to you + i know that i 'm shouting into the <unk> here as far as what we 're doing now + but i feel that if somebody does n't get up and start talking about this now the next time around when we have the next <unk> of these programs it will still be true that everyone is scared to talk about it + no politician wants to say what i just said not for a minute + the u.s. economy grew at a moderate N N annual rate in the third quarter the same pace as the second quarter despite the worst trade performance in six years the commerce department reported + personal spending buoyed by a burst of automobile buying was the main catalyst to the economy 's expansion + but trade one of the economy 's main forces in the past few years showed a sharp deterioration + imports of goods and services soared while exports were flat + some economists found the <unk> <unk> + for the past two years the foreign trade sector has been a major <unk> to economic growth + you ca n't rely now solely on consumer spending to sustain the economy on a solid growth path said norman robertson chief economist at mellon bank in pittsburgh + although the economy showed no change of pace from the second quarter many analysts expect it to slow considerably in the fourth quarter as demand for autos falls partly because of higher prices on models introduced last month + many economists think the rise in the value of the u.s. dollar this year will further <unk> progress in trade because it makes exports more expensive and imports cheaper + and business investment which slowed in the third quarter according to yesterday 's report is expected to continue to be sluggish + a sharp reduction in inflation was by far the <unk> spot in the report on the real gross national product the inflation-adjusted market value of all the goods and services the economy produced + an inflation gauge that measures the quarterly change in prices of an array of goods and services slowed its growth to a N N annual rate in the third quarter from N N in the second + much of the <unk> came from declining energy prices which have since turned up a bit analysts said + consequently michael <unk> undersecretary for economic affairs at the commerce department said inflation probably will edge up from the third-quarter rate in the final three months of N + but he said he believes the second quarter 's N N rate will prove to have been this year 's peak quarterly inflation rate + generally the bush administration expressed satisfaction with the economy 's progress as it heads into its eighth year of sustained growth next month + treasury secretary nicholas brady called the N N pace good solid growth although he said he expects the expansion to slow in the fourth quarter + he added inflation is lower than i think people expected it to be and i think that 's good news + but administration officials were concerned over the bleak trade report which showed the deficit in the country 's trade of goods and services swelling to a $ N billion annual rate in the third quarter from a $ N billion rate in the second quarter + mr. <unk> called it a disappointment but predicted exports will pick up again + we were <unk> for the deterioration in net exports said daniel van <unk> vice president of u.s. forecasting at bank of america in san francisco + i ca n't believe it will continue he added noting that the economies of the country 's major trading partners are strong and prices of u.s. products are still competitive + some analysts also were <unk> by a pickup in the growth of business inventories + while a buildup of these stocks adds to gnp it can hurt the economy because a <unk> of <unk> goods can lead to production cuts and layoffs + according to the report inventories outside the farm sector grew at an annual rate of $ N billion in the third quarter up from a $ N billion pace in the second quarter + manufacturers ' stocks <unk> at an $ N billion annual rate up from $ N billion + that suggests there is a little more inventory <unk> than some people expected said edward boss senior financial economist at continental bank in chicago + i do n't think it 's anything that 's going to cause a downturn in economic activity + but it will slow production + devastation from hurricane hugo which <unk> into the southeast coast in late september diminished personal income by about $ N billion the department said but it called the effect on the roughly $ N trillion economy negligible + except for the loss from the hurricane all the figures were adjusted for seasonal factors and inflation + here are some of the major components of the gross national product expressed in seasonally adjusted annual rates in billions of constant N dollars + in the third quarter the implicit price deflator fell to N N of the N average from N N in the previous quarter + northrop corp. received a $ N million contract by the u.s. air force for production <unk> and test equipment for the <unk> rainbow <unk> missile + the contract provides additional equipment for northrop the prime contractor on the missile and also supports a N purchase of N missiles for <unk> flight tests + general motors corp. 's chevrolet division said it is offering $ N cash incentives on all N models of its <unk> <unk> and suburban truck lines + chevrolet already has cash incentives on the N models of these vehicles + hudson 's bay co. announced terms of a previously proposed rights issue that is expected to raise about N million canadian dollars us$ N million net of expenses + proceeds of the offering will be used to redeem c$ N million of preferred shares and to reduce short-term debt the company said + canada 's largest department store operator said the rights offering will <unk> holders of its ordinary shares except residents in the u.s. and britain to subscribe for two additional shares for every five shares held at a price of c$ N a share + the record date is nov. N + the company has about N million ordinary shares outstanding + on the toronto stock exchange hudson 's bay shares closed at c$ N up N cents + hudson 's bay said that <unk> co. which currently holds about N N of the ordinary shares will subscribe for all the shares to which it is entitled and for any shares that are n't otherwise taken up + <unk> is a holding company owned by toronto 's thomson family + hudson 's bay said it will redeem N million series <unk> preferred shares on oct. N at a price of c$ N each + the move was approved at a special shareholders ' meeting yesterday + gary <unk> chief financial officer said redemption of the preferred shares originally issued at c$ N each will eliminate dividend payments of c$ N million annually + iverson technology corp. was one of the fastest-growing small companies in america until last year + the <unk> va. company <unk> computers to keep sensitive military data out of unfriendly hands + from N to N its earnings soared <unk> to $ N million on a <unk> increase in revenue to $ N million + but in N it ran into a <unk> saw a defense department spending freeze + iverson 's earnings plunged N N to $ N million + the troubles continued in this year 's first half when profit plunged N N to $ N + iverson technology is one of many small defense contractors besieged by the slowdown in defense spending + unlike larger contractors with a broad enough base to weather the downturn easily these companies are suffering big drops in business as <unk> specialty <unk> in the massive military market erode or even disappear + companies that only recently were thriving find themselves scrambling to survive + as their <unk> strategies suggest there is more than one way to respond to a disaster though it 's too soon to tell whether the changes will pay off + for many companies the <unk> first response is to cut costs + others are trying to find specialty defense work <unk> by the slowdown or new <unk> created by <unk> + more <unk> businesses are applying their skills in commercial fields + <unk> international inc. which provides professional and technical services to the military is refining its defense niche not retreating from it + after <unk> annual earnings over four years to $ N million in N the <unk> va. company posted a N N drop in earnings for this year 's first half + in the belief that development of advanced military technology will remain a top defense department priority <unk> last year acquired <unk> <unk> associates a technical and scientific analysis company with contracts under the strategic defense initiative + while the sdi <unk> program recently awarded <unk> <unk> two contracts totaling $ N million <unk> 's chairman and founder jack <unk> says he bought the company more for its technology than its customer + <unk> inc. an <unk> md. contractor that earned $ N million on revenue of $ N million in N has gone even further in <unk> its military business + as orders for its aircraft and <unk> parts <unk> three years of steady growth ended with a N N drop in income in this year 's first half + the company hit on a new strategy if the defense department is so intent on saving money why not make money off that trend + among the company 's current efforts <unk> old parts at N N of the cost of replacing them + <unk> also is selling new parts if needed directly to the military instead of through a prime contractor + at as little as one-third of the government 's cost the company is running a program to train army helicopter pilots + it is also taking over the maintenance of certain navy aircraft with N N fewer people than the military used + in another approach tiny iverson technology is trying to resume its growth by <unk> the new world of commercial products + donald iverson chairman says he hopes the company can eventually get up to half of its revenue from commercial markets + for now he says we 're looking at buying some small companies with niche markets in the personal-computer business + earlier this month mr. iverson agreed to buy exclusive rights to a software system developed by <unk> systems inc. salt lake city + the product <unk> an array of functions performed at small to <unk> printing companies + mr. iverson says there are N potential customers for the software in the washington d.c. area alone + <unk> inc. falls church va. also has acquired some companies outside the military market + moreover it 's trying to transfer its <unk> at designing military equipment to commercial ventures + a partnership with a <unk> va. unit of shell oil co. recently <unk> a process for producing plastic food containers that wo n't <unk> in microwave <unk> + we 're trying to take the <unk> and talent of our engineers and come up with new processes for industry says vincent <unk> <unk> 's chief executive + it is an effort to branch out from the government which is very difficult for a defense contractor + mr. <unk> should know + instead of helping his company in the defense spending slowdown dynamic engineering inc. a troubled subsidiary that makes wind <unk> for the space industry contributed to much of <unk> 's $ N million loss on $ N million in revenue last year + in january mr. <unk> sold the unit + it was our first acquisition he says and it was a mistake + some companies are cutting costs and hoping for the best + <unk> corp. a santa <unk> calif. provider of <unk> and <unk> services to the military enjoyed steady growth until this year + following a <unk> of earnings to $ N million on a doubling of revenue to $ N million over four years earnings in the company 's fiscal first quarter which ended june N plunged N N to $ N + a one-time write-off for <unk> <unk> revenue was partly to blame but so were lower profits from a <unk> contract with the army and delays in getting paid + <unk> responded by combining three of its five divisions to reduce expenses and bring more focus to potentially fewer bidding opportunities says lin <unk> <unk> chairman and controlling shareholder + it 's evident we 're entering a more competitive era he says + <unk> corp. a sherman <unk> calif. defense contractor that earned $ N million on revenue of $ N million in N provides a more dramatic example of cost-cutting + the company not only merged three <unk> manufacturing operations but also closed an unrelated plant that makes <unk> devices used in fighter planes and missiles + the closing contributed to a $ N million loss in the fiscal first quarter ended july N its first quarterly loss since N + our <unk> business has been hurt very badly by the slowdown says <unk> <unk> <unk> 's chairman + i would n't say we 're out of the business + but we 're not making as many <unk> devices as we used to + the growing crowd of japanese investors buying up foreign companies are n't all <unk> businessmen in dark suits + <unk> morishita whose art gallery last month became a major shareholder in christies international plc the london auction house is one man who does n't fit the <unk> + in japan he 's known in <unk> weekly magazines as the king of <unk> money + if nothing else the <unk> 's past has its share of <unk> + nearly N years ago mr. morishita founder and chairman of aichi corp. a finance company received a <unk> suspended sentence from a tokyo court for violating a <unk> law and an income tax law + he was convicted of charging interest rates much higher than what the law permitted and attempting to <unk> income taxes by using a double accounting system + he 's had other <unk> with the law + he was arrested though not indicted on at least three other occasions in the <unk> and <unk> for assault and unlawful <unk> for fraud and <unk> of private documents and for <unk> + christies says it has had no contact with mr. morishita since the stock purchase but that it 's happy to deal with him + we like to make our own judgments about mr. morishita says christopher <unk> christies ' group managing director + people have a different reputation country by country + mr. morishita is a leading figure among japan 's N <unk> which lend to small companies and <unk> which lend to individuals + many of these financiers lend freely often without demanding collateral + but the interest rates they charge are often near japan 's N N legal limit says <unk> <unk> a lawyer specializing in loan troubles + aichi is a <unk> mr. <unk> says and one of the nasty ones + in describing that business in general he says that when the client ca n't repay the loan some <unk> <unk> on like <unk> and even take over the client 's company + last month mr. morishita 's new gallery <unk> international ltd. purchased N N of christies for # N million $ N million + acquired from <unk> holdings u.k. ltd. a company owned by australian financier robert holmes a court the stake was apparently the first of its kind for <unk> an entity separate from aichi + and the acquisition which made <unk> one of christies ' top five shareholders left many people wondering who this man was and what his intentions were + we 're an investor mr. morishita says sitting back in his <unk> gallery filled with some N <unk> and <unk> + in the long run the stock prices will go up + it 's not clear whether <unk> plans to buy more shares + but christies mr. morishita insists is happy to see him become a long-term <unk> + mr. morishita considers himself a <unk> of art + in N years of collecting <unk> and japanese paintings he has acquired N items he says enough to persuade him to start a museum next year + he says he spent $ N million on his art business this year + a week ago his gallery racked up a $ N million <unk> at a sotheby 's auction in new york buying seven works including a <unk> + he makes <unk> judgments says <unk> <unk> the art gallery 's manager and mr. morishita 's secretary for more than seven years + mr. morishita 's main business certainly appears to be thriving although he wo n't disclose numbers + according to <unk> data bank ltd. which tracks company earnings aichi 's revenue rose N N to N billion yen $ N million in the year ended february + revenue doubled from two years ago + that is if the company reported results <unk> + the <unk> <unk> a japanese daily last month reported that aichi revised its tax calculations after being challenged for allegedly failing to report all of its income to tax authorities over a two-year period + the tokyo regional taxation office declines to comment and mr. <unk> the <unk> 's secretary says the problem simply resulted from a difference of opinion over what was considered income + the small <unk> mr. morishita comes across as an outspoken man of the world + stretching his arms in his <unk> white <unk> and <unk> his black shoes he <unk> a <unk> about the way to sell american real estate and boasts about his friendship with margaret thatcher 's son + but when asked what exactly he does in business he immediately takes <unk> + are you stupid he <unk> + you should know what questions to ask to get people to answer + not many people know the details of mr. morishita 's business but it 's a source of rumors about <unk> dealings + when a small company goes <unk> for instance the <unk> weekly magazines are often quick to link the demise with aichi + mr. morishita <unk> at those stories as well as the ones connecting him to the japanese <unk> + he says he has never even <unk> with <unk> + the seventh child of a store owner in aichi <unk> mr. morishita started out in the textile business + from there he set up his finance company and rapidly expanded from lending to investment in real estate to building golf courses + he spends most <unk> flying his helicopter to one of his nine courses he says two of which were designed by jack <unk> + he also owns courses in the u.s. and france + the <unk> financier recently started <unk> in <unk> circles + although he says he was n't keen on going last year he attended a new york <unk> where his daughter made her debut + he also leads an <unk> life style + even in <unk> one of tokyo 's <unk> neighborhoods mr. morishita 's <unk> brick <unk> one of some N houses he owns <unk> the neighbors ' + a <unk> white <unk> with a <unk> window towers over the brick wall surrounding his property + although mr. morishita says little about his business he offers one rule to success never gamble too far + i quit after one try whether i win or lose he says + i 'm done in two minutes + mr. morishita says he intends to expand his business to many other areas at home and abroad + he 'll be there wherever there 's money to be made <unk> mr. <unk> the secretary + who knows he says if he heard that soybeans make money today he might be flying out to chicago tomorrow + who 's news + arthur price resigned as president and chief executive officer of mtm enterprises inc. a <unk> calif. entertainment concern + he <unk> the company with grant <unk> and mary tyler moore in N + mtm is a unit of <unk> tvs entertainment plc whose chief executive officer james gatward will oversee the company until a successor is named + as expected first interstate bancorp reported a net loss of $ N million for its third quarter because of hemorrhaging at its first interstate bank of arizona unit + the los angeles-based bank holding company disclosed last friday that it had taken a huge $ N million provision for loan losses at the arizona bank the result of the state 's worsening real-estate market + in yesterday 's report first interstate said its bank in texas also reported a loss of $ N million for the quarter + but it said that its consumer banks in oregon california nevada and washington performed well during the quarter and that nonperforming assets at these banks declined by N N over the year-ago period + private-sector union contracts signed in the third quarter granted slightly lower wage increases than those signed in the second quarter but wage increases still are running above last year 's levels + the labor department said wage settlements in the third quarter called for average annual wage increases of N N in the first year and N N over the life of the contracts + the last time parties to these settlements negotiated wage increases mostly in N or N wages increased an average of N N a year over the life of the contracts + if this pattern continues the labor department said N will be the first year that the measure has shown an increase since N when the department started <unk> <unk> contracts with those that replaced them + this reflects the restoration of wage cuts in the steel and other industries as well as higher wages granted nurses who work in health-care facilities + settlements reached in the first nine months of N called for wage increases averaging N N in the first contract year and N N annually over the life of the contracts the department said + for all of N union contracts provided for N N wage increases in the first year and N N over the life of the contracts + in the second quarter contracts called for increases of N N in the first year and N N over the life of the contracts + the figures exclude <unk> payments and cost-of-living adjustments so the actual wage increases may have been bigger + about N N of the workers covered by contracts signed in the first nine months of year get <unk> payments about N N are covered by cost-of-living <unk> + unions covered by one or other provisions generally settled for lower percentage wage increases + the labor department said wage increases in manufacturing industries continue to be smaller than those in other industries + for all six million workers under major collective bargaining agreements regardless of when they were signed wage increases in the first nine months of N averaged N N including cost-of-living adjustments + an enormous <unk> has succeeded where the government has failed he has made speaking filipino respectable + the N <unk> <unk> <unk> <unk> is a character who stars in the children 's television show batibot + he speaks only in filipino + batibot which started in N as a hybrid of the u.s. program <unk> street has developed into a <unk> philippine effort + radio programs and books have followed the daily television show + in the process batibot an <unk> filipino word meaning strong or <unk> has become a powerful advocate of the use of the filipino language + it <unk> on ordinary young <unk> that there 's nothing to feel <unk> about in using their own language says <unk> david a sociologist and host of a popular television talk show + when we started the program six years ago the use of filipino was deemed <unk> by the <unk> middle class says <unk> brown the program 's <unk> + now she says it 's no longer an issue + the success of batibot stands in marked contrast to many academic and government attempts to promote filipino as a national language + filipino once known as <unk> is <unk> <unk> the <unk> language spoken in a part of the country 's principal island of luzon + resistance to a national language comes primarily from members of the country 's elite who generally prefer english + but while <unk> <unk> are quick to cite the logic in using a language as widespread as english they are often slow to reveal that they are <unk> against filipino say advocates of the native language + for the middle and <unk> class filipino is <unk> says <unk> <unk> a <unk> professor at <unk> city 's university of the philippines + there 's also <unk> + other opponents of filipino come from <unk> regions + they argue that their own <unk> should have equal weight although recent surveys indicate that the majority of the country 's population understands filipino more than any other language + there are seven major <unk> and more than N <unk> in the country + what <unk> to speak is an emotional mine field in the philippines + it is entrenched in the country 's colonial bonds to the u.s. in philippine class structure in the regional <unk> of its people and in its island geography + as they did when the philippines was a colony of the u.s. teachers for the most part teach in english even though it is a foreign language for most philippine children + as a result they often speak one language at home another at school + mrs. brown calls the <unk> cultural <unk> to filipino a language <unk> + the issue has been <unk> for years + it does n't take much to <unk> an intense debate + when president <unk> aquino whose command of filipino is <unk> announced last year that the language would be used in official communications there was an <unk> from many legislators who continue to conduct debates mostly in english + but many proponents of filipino see resistance to the language finally crumbling + they believe the media including batibot have played a crucial role + according to chief <unk> <unk> <unk> batibot does n't set out to advance the cause of filipino + it 's not as if we 're teaching language per <unk> he says we 're just using it + these days batibot is produced in a converted <unk> on a <unk> budget of $ N a one-hour segment + it is shown <unk> on two of the country 's five networks + with an audience totaling more than N batibot consistently ranks in the country 's <unk> <unk> <unk> programs + but advertising revenue is inadequate + <unk> there are threats that the program will <unk> + batibot lacks the polish of <unk> street + sound stages echo + acting sometimes falls flat + there are only two large <unk> in the program <unk> <unk> and a <unk> named <unk> <unk> + but the production is the equal of any local program + and the show 's creativity makes up for any technological deficiencies + the program is n't afraid to tackle controversial topics such as nuclear weapons and the environment + not that the language war is won even on batibot + during one recent episode all the advertisements were in english + cms energy corp. said management would recommend to its board today that its common stock dividend be <unk> at a modest level later this year + the dearborn mich. energy company stopped paying a dividend in the third quarter of N because of troubles at its midland nuclear plant + in addition cms reported third-quarter net of $ N million or N cents a share up from $ N million or N cents a share a year ago + <unk> inc. atlanta said its subsidiary home nutritional services inc. registered with the securities and exchange commission an initial public offering of four million shares of common + the <unk> health care services provider said it will sell N million of the new shares while home nutritional services will sell the remaining N million + the company estimates the offering price at between $ N and $ N a share + the company said it expects to use the proceeds to repay certain bank debt and for general corporate purposes including establishing new operating centers and possible acquisitions + home nutritional currently has N million shares outstanding + it will have N million shares outstanding after the offering with <unk> owning about N N of the total + black & decker corp. said it agreed to sell its <unk> chemical <unk> unit to orkem s.a. a french chemical company for $ N million + <unk> is the first emhart corp. unit to be sold as part of the <unk> manufacturer 's effort to reduce debt and consolidate operations after it acquired emhart earlier this year + black & decker said it plans to put other emhart units on the block in the future with the goal of raising $ N billion in net proceeds + black & decker <unk> emhart from the takeover bid of <unk> limited partnership last march by agreeing to acquire the maker of door <unk> and <unk> tools for about $ N billion + the move significantly expanded black & decker 's product line but also significantly increased its debt load + the acquisition boosted black & decker 's ratio of debt to total capital to more than N N + company officials have said they plan to reduce that ratio to less than N N over the next N N years + earlier this year black & decker put three emhart businesses on the auction block the information and electronics segment the <unk> electrical assembly business and <unk> <unk> + the three units had combined N sales of about $ N million + the three units contributed about a third of emhart 's total sales + in addition black & decker had said it would sell two other undisclosed emhart operations if it received the right price + <unk> is one of the previously <unk> units and the first of the five to be sold + the company is still negotiating the sales of the other four units and expects to announce agreements by the end of the year + the five units generated sales of about $ N billion in N almost half of emhart 's $ N billion revenue + <unk> posted N sales of $ N million + our divestiture program is on schedule and we remain confident that we will achieve our stated goal of over $ N billion in net proceeds said <unk> d. <unk> black & decker 's president and chief executive officer in a statement + the sales are an attempt to <unk> investor concern about black & decker 's increased debt burden from the emhart purchase + the company 's stock plunged when it first announced that it planned to acquire emhart + the company maintains that it does n't expect emhart to contribute to earnings for about another N months + in composite trading on the new york stock exchange black & decker closed at $ N yesterday down N cents + the company did n't announce the sale until after the close of the market + dick darman call your office + <unk> in the budget being <unk> by the house-senate conference committee is something that looks <unk> and <unk> like a duck + it 's a <unk> tax on mergers + congress has decided to raise $ N million by charging companies $ N for the honor of filing the required papers under the hart-scott-rodino law + ever since the bad days of big is bad antitrust enforcement this law has required that anyone proposing a merger must make a filing describing the effects on all relevant markets + the <unk> filing is then reviewed and any antitrust concerns usually met + typically <unk> is used now to give managers of target firms early news of a bid and a chance to use regulatory review as a delaying <unk> + the $ N tax would be a small cost in a multibillion-dollar deal but a serious drag on thousands of small friendly deals + one especially dangerous aspect to the new tax would be that the proceeds will be used to increase the budgets of the antitrust division at justice and the federal trade commission + this amounts to a <unk> for regulators the more <unk> the more they get to keep + also as former reagan antitrust chief charles rule has noted this would establish the precedent that the government may charge parties for the privilege of being sued regardless of whether the government <unk> + yet another opportunity for president bush to respond read my <unk> + line-item veto + michael <unk> N years old was named vice chairman for planning marketing and industry services a new post + mr. <unk> had been a vice chairman of ernst & <unk> an accounting firm that merged with rival arthur young in july to form ernst & young a major accounting tax and management consulting firm + mr. <unk> 's appointment <unk> a role he has been performing since the merger a spokeswoman said + cie. de navigation mixte chairman marc fournier said his board unanimously rejected as too low the $ N billion bid by cie. financiere de paribas to bring its stake in navigation mixte to N N + at a news conference mr. fournier accused paribas of planning to pay for the takeover by selling parts of the company whose interests include insurance banking <unk> <unk> sugar and orange <unk> + the chairman said his board members including representatives of west german insurance giant allianz ag and french banks credit lyonnais and societe generale hold nearly N N of navigation mixte 's capital + mr. fournier said that as navigation mixte chairman he is prohibited by takeover regulations from organizing his own defense or doing anything besides managing current company business + but sources said he will be urging his allies to boost their stakes in navigation mixte which is being traded in london and is to resume trading in paris tuesday + at the same time he is expected to seek legal and regulatory means of blocking or delaying paribas 's bid + for the moment the sources said he has decided against seeking a white knight or organizing a <unk> for paribas + mr. fournier said navigation mixte 's N unconsolidated or <unk> profit is likely to be N billion francs $ N million up from N million francs last year + that is due mostly to payments from allianz for most of the N N stake it has agreed to acquire in navigation mixte 's insurance business + mr. fournier said the <unk> gain would mean nearly twice as high a dividend this year as last + if holders avoid <unk> to paribas he added they can expect strong dividends again next year + analysts noted that over the past N years mr. fournier has built his company through <unk> stock-market activity and has <unk> off at least three takeover attempts + this time however some analysts think he could face a real battle + without some unexpected coup de theatre i do n't see what will block the paribas bid said <unk> de <unk> analyst at the brokerage <unk> & cie + mr. de <unk> said mr. fournier 's biggest hope was to somehow persuade regulatory authorities to block the bid + paribas still needs the <unk> from the commission des operations de <unk> a government regulatory agency but analysts said that is considered likely + mr. fournier also noted that navigation mixte joined paribas 's core of shareholders when paribas was <unk> in N and said it now holds just under N N of paribas 's shares + once he realized that paribas 's intentions were n't friendly he said but before the bid was launched he sought approval to boost his paribas stake above N N + the petition is still pending but mr. fournier <unk> the likelihood of his organizing a takeover bid of his own for the <unk> paribas + one big question now is the likely role of mr. fournier 's allies + mr. fournier said the large institutions that hold nearly N N of navigation mixte 's capital all strongly support him but some analysts said they are n't so sure + allianz for example has said in official comments so far that it will remain neutral + paribas is allianz 's lead french bank + paribas said monday that it intends to bid to boost its stake in navigation mixte to N N from the N N it already owns + the purchase of the additional N N stake is expected to cost more than N billion francs $ N billion + paribas says it will offer N francs $ N each for navigation mixte shares that enjoy full dividend rights and N francs each for a block of shares issued july N which will receive only partial dividends this year + alternatively it is to offer three paribas shares for one navigation mixte share + the paribas offer values navigation mixte at about N billion francs depending on how many of navigation mixte 's warrants are converted into shares during the takeover battle + blockbuster entertainment corp. said it raised $ N million from an offering of liquid yield option notes + the gross proceeds from the sale of the notes which will be due on nov. N N will be used to reduce existing debt and for general corporate purposes the company said + the debt reduction is expected to save the fort <unk> fla. home video concern about $ N million a year in interest expense + the zero-coupon subordinated notes have no periodic interest payments + each note is being offered at $ N per $ N principal amount at maturity representing an N N yield to maturity + in addition each note can be converted into blockbuster entertainment common stock at a rate of N shares per note + merrill lynch capital markets inc. is the sole underwriter for the offering + the notes will have a principal amount of $ N million at maturity + blockbuster shares closed yesterday at $ N down $ N in new york stock exchange trading + the N tax reform act has nearly eliminated the number of large profitable corporations that do n't pay federal income tax according to citizens for tax justice a nonprofit <unk> research and lobbying group + in a study of N of the nation 's <unk> companies the group found that only seven managed to avoid paying federal income taxes last year compared with N in N the last year the old tax rules were in effect and N in N when some of the new tax provisions went into effect + moreover N companies that paid no federal income tax from N through N despite billions of dollars of profits ended up paying an average of N N of their income in federal taxes in N + the report released yesterday comes as congress is considering a number of special tax breaks only three years after the sweeping <unk> legislation abolished or curtailed many <unk> + in the corporate <unk> the N law abolished the <unk> credit scaled back use of an accounting method that allowed large contractors to defer taxes until a project was completed and strengthened the so-called alternative minimum tax a levy to ensure all <unk> businesses pay some federal tax + the combination of lower rates and fewer <unk> has meant that the so-called average effective tax rate the rate actually paid of the N corporations surveyed reached N N in N compared with N N in the years from N through N according to the study + in addition corporations are now <unk> a bigger share of the tax burden as the authors of the N law hoped + corporate taxes paid for almost N N of federal spending in N excluding social security compared with less than N N in the first half of the 1980s the study found + tax reform is working the study said + under the new <unk> law the days of widespread wholesale corporate tax <unk> have come to an end + still <unk> co. pinnacle west capital corp. <unk> corp. illinois power co. media general inc. santa fe southern pacific corp. and gulf states utilities co. did n't pay any federal income tax last year although they <unk> a total of $ N billion in profits the group said + in fact six of those companies received refunds which totaled $ N million + the lobbying group used publicly available information to calculate each company 's domestic profits and its federal income tax payments + this is the fifth year citizens for tax justice has released a study on corporate tax bills + earlier reports which revealed that as many as N companies were avoiding income tax legally have been credited with helping <unk> efforts to overhaul the tax code + but even though companies are paying more taxes many are still paying less than the statutory rate the report said + and N companies paid effective tax rates of below N N of their income + while the overall picture is very encouraging significant corporate tax <unk> continues the study said + glenn hall contributed to this article + f. <unk> <unk> N years old was named chief executive officer + he retains his titles of president and chief operating officer and succeeds as chief executive howard o. <unk> jr. who remains chairman of the board + <unk> makes electronic instrumentation and data acquisition systems + in search of buyers for upscale department-store chains such as bloomingdale 's and saks fifth avenue investment bankers are turning to who else the japanese + but so far japan 's <unk> retailers are proving to be cautious shoppers + we have the money to buy + but operating a u.s. department-store chain would be very difficult says <unk> <unk> managing director of the international division at <unk> ltd. one of japan 's leading department stores + japanese retail executives say the main reason they are reluctant to jump into the fray in the u.s. is that unlike manufacturing retailing is extremely sensitive to local <unk> and life styles + the japanese have watched the europeans and <unk> <unk> in the u.s. market and they <unk> that business practices that have won them huge profits at home wo n't translate into success in the u.s. + japanese department stores are also wary of attracting negative publicity + after sony corp. 's recent <unk> acquisition of columbia pictures many say it makes good political sense to lie low + it 's a question of timing says <unk> <unk> managing director of international operations at <unk> co. a tokyo department store + still for those with a long-term eye on the vast u.s. retail market this is a <unk> time to look for bargains + britain 's b.a.t industries plc is trying to <unk> its u.s. retailing operations which include such well-known stores as saks fifth avenue marshall field 's <unk> and <unk> 's + and <unk> campeau corp. of toronto is giving up the <unk> bloomingdale 's group + every department store in japan is taking a look says mike allen a retail analyst at <unk> 's de zoete wedd securities japan ltd + mr. allen however does n't think that japan is about to <unk> on a major buying binge + nonetheless speculation <unk> up yesterday when tokyu department store co. confirmed a report in <unk> <unk> <unk> japan 's leading business daily that tokyu is talking with campeau about buying bloomingdale 's + tokyu however said no agreement had been reached + nor is tokyu the only japanese retailer interested in bloomingdale 's which bankers in tokyo estimate could cost between $ N billion and $ N billion + seven japanese department-store groups were approached by investment bankers representing bloomingdale 's chairman marvin traub and more than half are seeking additional information on the group bankers say + what mr. traub is hoping to put together investment bankers say is a management-led group to buy the new york department-store group that he heads from campeau 's federated department stores subsidiary + federated ran into a cash crunch after it was acquired last year by campeau which relied heavily on debt to finance the transaction + paying off that debt put such a squeeze on campeau and its stores that federated decided to sell off the <unk> of its retailing empire including bloomingdale 's + hoping to avoid another takeover mr. traub retained blackstone group and drexel burnham lambert inc. to help him find partners for a management-led buy-out + <unk> investment bankers say he wants to get backing from a japanese department store and a european department store to forge a global retailing network + when you look at the economics traub needs a japanese and a european partner to make it work says one investment banker who follows the retail industry + looking only at a narrow american strategy is n't where it 's at + <unk> <unk> japanese retailers to get involved in the <unk> of the u.s. retailing industry is n't likely to be so easy analysts say + up until now most stores have followed the same basic overseas strategy + first they set up overseas merchandising offices to import items and track new fashion trends + then they opened small gift shops mostly aimed at japanese tourists + reluctant to advance further on their own some stores have settled for <unk> with famous specialty shops + last march <unk> invested N billion yen $ N million in a venture with barney 's inc. an <unk> new york specialty <unk> + the first barney 's shop is scheduled to open in japan next year + and <unk> recently increased its equity stake in <unk> & co. to N N + through the longstanding relationship between the two companies <unk> has opened N <unk> shops in its stores and <unk> in japan + plans are under way to open a <unk> 's in hawaii to cater to japanese tourists it will be run mostly by <unk> + some industry observers say that <unk> 's <unk> image makes it a possible match for saks fifth avenue + company officials say they are studying various proposals but wo n't discuss details + <unk> co. japan 's oldest department store is another name that keeps <unk> up as a potential fit with saks + <unk> <unk> a <unk> general manager admits that his company 's image is similar to saks 's and that there is some interest in the idea + but he stops there + we 'd like to do business in america he says + but it looks tough + marcus w. <unk> contributed to this article + compiled by william <unk> + the vatican was in the red last year + it said the regular N deficit amounted to $ N million based on revenue of $ N million and expenses of $ N million + but it said extraordinary expenditures for its radio station and restoration of buildings increased the deficit to $ N million + a statement from the council of <unk> said <unk> had responded <unk> to an appeal last year to give more money after N 's record $ N million deficit + the statement said a N N jump in the peter 's pence collection the annual offering from <unk> to the pope helped cover the deficit + council member <unk> gerald carter of toronto told vatican radio now that we say we covered our deficit this year people are going to relax and say well that 's fine the <unk> see is out of the hole + but we 're going to be in the exact same situation next year + former president richard nixon is to visit china at the invitation of the government beginning saturday the foreign ministry announced + according to mr. nixon 's office this is solely a <unk> trip + there will be no <unk> no shopping and no social events + mr. nixon 's office said the former president expects to have <unk> discussions with the major chinese leaders and will give his assessment of those leaders to president bush upon his return + a poll conducted in N of N nato countries shows that the dutch appear to be the strongest supporters of the alliance + the poll conducted for the dutch daily de <unk> by <unk> international said N N of dutch people supported nato + canada was the second most <unk> country with N N supporting the alliance followed by the u.s. with N N britain with N N belgium with N N and west germany with N N + all other countries registered support below N N + the israeli manufacturers ' association filed a police complaint against an arab pasta maker for using the four colors of the outlawed palestinian flag on <unk> packages + we asked police to investigate why they are allowed to distribute the flag in this way + it should be considered against the law said danny <unk> a spokesman for the association + the <unk> is made by the al <unk> <unk> co. in bethlehem and is marketed in a package <unk> with green black red and white <unk> + british postal authorities say they have uncovered a large-scale scheme where unscrupulous <unk> dealers <unk> removed <unk> <unk> <unk> the <unk> and sold them to u.s. collectors or in large lots to british businesses + the scheme allegedly cost the post office # N million $ N in revenue in the past N months + dealers bought the used <unk> <unk> from charities including the guide dogs for the blind association + the charities regularly sell used <unk> which they collect from children and other <unk> to raise funds + <unk> <unk> president of japan 's <unk> electric industrial co. presented the u.s. <unk> general in osaka with a $ N million check to help san francisco 's earthquake victims + the company 's u.s. subsidiary <unk> electric corp. of america had donated over $ N worth of <unk> <unk> and <unk> to residents shortly after the disaster a company spokesman said + several other japanese companies and regional governments have sent aid to san francisco + <unk> bank donated $ N tokyo <unk> $ N and the city of osaka $ N + chinese officials are trying to use the canton trade fair to lure back overseas traders after the bloody crackdown on dissent + but attendance is down from previous years + what 's more a hong kong textile trader says some chinese exporters from <unk> enterprises are <unk> the crackdown by dragging their feet on soliciting new business + they are angry about the government so they hold back the goods he said + this autumn 's edition of the <unk> fair will run through oct. N + inside the <unk> glass exhibition complex products ranging from clothing to <unk> machine guns are on display + fair officials say that N guests visited during the first five days a N N drop from the spring exhibition + but china 's official <unk> news agency reported that the number of foreign businessmen was greater than the previous fair without providing statistics + in another sign of glasnost alexander <unk> 's <unk> <unk> of soviet repression the <unk> <unk> is now recommended reading in one <unk> moscow history class + british customs officers said they 'd arrested eight men <unk> N rare <unk> into britain including one man who strapped a pair of <unk> <unk> under his <unk> + a customs official said the <unk> followed a <unk> day at <unk> university in the netherlands an event used by some collectors as an opportunity to obtain rare <unk> + di giorgio corp. said it 's continuing talks with potential buyers of certain units but has reached no agreement on any deals + di giorgio a food <unk> and building products maker is seeking alternatives to an unsolicited $ <unk> tender offer of dig acquisition corp. a unit of rose partners limited partnership + dig is the vehicle being used to pursue to acquisition + robert <unk> di giorgio 's executive vice president said the company stands to reap more money through the sale of individual units to others than by accepting dig 's offer + some <unk> earnings reports <unk> the stock market but bond prices fell only slightly and the dollar rose a little against most major currencies + the dow jones industrial average tumbled N points to N in active trading + long-term treasury bonds ended slightly higher + the dollar rose modestly against the mark and the yen but soared against the pound following the resignation of britain 's chancellor of the exchequer nigel lawson + analysts have complained that third-quarter corporate earnings have n't been very good but the effect hit home particularly hard yesterday + compaq computer <unk> $ N a share to $ N and pulled other technology issues lower after reporting lower-than-expected earnings after the stock market closed wednesday + later yesterday the nation 's major auto makers added to the <unk> when they each reported their core auto operations were net losers in the third quarter + the <unk> third-quarter results came amid renewed concern about the volatility of stock prices and the role of <unk> program trading + taken together the worries prompted a broad sell-off of stocks + the number of stocks on the new york stock exchange that fell in price yesterday exceeded N a key measure of underlying sentiment among technical analysts + although the government said the economy grew an estimated N N in the third quarter in line with expectations analysts are increasingly predicting much more sluggish growth and therefore more corporate earnings disappointments for the fourth quarter + there are a lot more downward revisions of earnings forecasts than upward revisions said <unk> joseph cohen a market strategist at drexel burnham lambert + people are questioning corporate profits as a <unk> of support for the equity market + the bond market was <unk> by the economic statistics + while bond investors would have preferred growth to be a little slower they were cheered by inflation measures in the data that showed prices rising at a modest annual rate of N N + that is another small encouragement for the federal reserve to lower interest rates in coming weeks they <unk> + in major market activity + stock prices fell sharply in active trading + volume on the new york stock exchange totaled N million shares + declining issues on the big board <unk> gainers N to N + bond prices were barely higher + the treasury 's benchmark 30-year rose fractionally + yield on the issue was N N + the dollar rose modestly against most major currencies + in late new york trading the dollar was at N marks and N yen compared with N marks and N yen wednesday + the dollar soared against the pound which was at $ N compared with $ N wednesday + the house joined the senate in making federal <unk> for <unk> held in world war ii <unk> camps a legal <unk> requiring the treasury department to meet <unk> payments of an estimated $ N billion during the next several years + the N roll call came as the chamber approved a compromise bill <unk> $ N billion to the departments of state justice and commerce in fiscal N and imposing increased fees on business interests making filings with the government + an estimated $ N million would come annually from a new $ N charge on <unk> <unk> to the justice department and securities and exchange commission filing fees would rise by N N to fund a $ N million increase in the agency 's budget + yesterday 's vote on <unk> <unk> <unk> final enactment of the <unk> provision which <unk> earlier efforts to find offsetting cuts but is seen as a more realistic path to <unk> compensation first authorized in N + the only way to reduce the costs is to say we do n't want to pay the bill said rep. neal smith d. iowa who <unk> president bush 's party to back up his campaign promise of supporting the claims of $ N per individual + read my <unk> said mr. smith + if you 're for paying the claims i do n't know how anyone can oppose this + no payments would be made this year but beginning in fiscal N the bill <unk> the government to annual payments of as much as $ N million until the total liability of $ N billion is met + the issue has assumed some of the character of past <unk> debates and <unk> old regional divisions in the democratic majority + as much as republicans led the opposition among the N democrats voting against treating the payments as an <unk> N came from the N states in the old <unk> south and its borders + the odd mix of departments in the underlying bill makes it one of the more <unk> of the annual appropriations measures and it is a <unk> rod for a running battle over the fate of the legal services corp + the measure provides $ N million to maintain services but would sharply curb the power of the current board until <unk> are agreed to by the bush administration + the conservative <unk> of the incumbent <unk> named by former president reagan has divided republicans + and on <unk> roll calls N and N the appropriations committee leadership turned back efforts to weaken or strip the proposed restrictions first added by sen. warren <unk> r. n.h. + the estimated $ N million from the new <unk> notification fee would be divided between the justice department 's antitrust division and the federal trade commission which both face serious cuts if the income is n't realized + the federal bureau of investigation is slated to receive $ N million by charging for <unk> services in civil cases and the judiciary will rely on another $ N million from bankruptcy charges including a N N increase in the current filing fee + the $ N billion total for the bill does n't include an estimated $ N billion in supplemental anti-drug funds approved by the house-senate conference yesterday and the rush of money is already <unk> <unk> among states competing for assistance + the house agreed to defer for a year a scheduled N N increase in the required state matching funds for law-enforcement grants but by a N margin the chamber stripped a senate initiative to raise the minimum grant for smaller states such as new hampshire and delaware to $ N million from $ N + few are more powerful in the competition for funds than the appropriations committees themselves including the three authors of the <unk> deficit-reduction law + when a house-senate conference on yesterday 's bill <unk> $ N million in <unk> funds for a fort worth texas economic development project backed by former speaker james wright sen. phil <unk> r. texas insisted last week that the money be <unk> + the measure includes $ N million secured by mr. <unk> for a <unk> project at the university of new hampshire and sen. ernest <unk> d. s.c used his power to add $ N million for an advanced technology initiative in the commerce department + this was in addition to a more <unk> $ N million authorization for a health center in south carolina upheld by a N vote in the house last night + the big three u.s. auto makers posted losses in their core north american automotive businesses for the third quarter and expectations of continued slow vehicle sales and price wars are casting a pall over the fourth period + the strongest sign of the big three 's woes came from ford motor co. which said it had a loss in its u.s. automotive business for the first time since N + ford predicted fourth-quarter net income will fall below the year-earlier level partly because of a likely $ N million charge from the sale of its steel operations + the bleak automotive results were offset by strong earnings from some <unk> operations + still the combined profit of ford chrysler corp. and general motors corp. fell N N to $ N billion from $ N billion a year earlier excluding a one-time gain of $ N million at chrysler from the sale of mitsubishi motors corp. stock + the last time all three companies reported north american automotive losses was in the recession year of N + yesterday 's announcements helped spark a midday wave of program selling in the stock market + gm 's common closed at $ N a share down N cents ford fell N cents to end at $ N and chrysler eased N cents to $ N all in new york stock exchange composite trading + the market 's <unk> reflects the gloomy outlook in detroit + as japanese auto makers gained market share the big three with gm in the lead slashed north american production and launched a retail discounting <unk> + the price war peaked in the third quarter as big three factory discounts climbed to more than $ N a vehicle according to industry officials + gm probably had the heaviest incentives said robert s. miller chrysler 's chief financial officer + we all did what we had to do to stay within sight of them + but the costly efforts did little to slow japanese market gains and domestic car sales have plunged N N since the big three ended many of their programs sept. N + gm ford and chrysler have already cut fourth-quarter u.s. output plans an estimated N N from N levels + if sales do n't pick up the cuts will go deeper and incentives will <unk> again + ford which has long <unk> of its ability to weather a downturn saw earnings take a beating + the no. N auto maker blamed incentive costs and reduced production both the result of a substantially weaker u.s. market for a N N drop in net to $ N million or $ N a share on revenue of $ N billion + nearly all the decline came in ford 's u.s. automotive operations + the dearborn mich. auto maker ran a loss of $ N million on <unk> and marketing cars in the u.s. a deterioration of $ N million in that line from the N quarter + ford managed to show a profit for the quarter primarily because of earnings from overseas auto operations and financial services + a year earlier ford reported record net of $ N million or $ N a share on revenue of $ N billion + in the latest nine months ford earned $ N billion or $ N a share compared with $ N billion or $ N a share + the u.s. automotive loss was a sharp reversal for a company that had <unk> off N consecutive quarters of improved earnings until the N second quarter + but david n. <unk> vice president finance insisted that cost-cutting and tight production capacity will make results better in this downturn than in prior <unk> when ford had net losses + still mr. <unk> said ford expects the u.s. economy to weaken through the end of N causing weaker sales and production + as a result fourth-quarter profit will come in below N results although the drop wo n't be as sharp as the N N third-quarter decline he said + part of the drop will come from an anticipated charge of as much as $ N million from the proposed sale of its rouge steel unit + in the N fourth quarter ford had net of $ N billion or $ N a share + chrysler 's operating profit fell to a <unk> $ N million or N cents a share its lowest quarterly total in seven years + its $ N million or $ N a share gain from the sale of N million mitsubishi shares made net $ N million or $ N a share + sales were flat at $ N billion + the results include record quarterly earnings of $ N million from chrysler financial corp + a year earlier chrysler 's net was $ N million or N cents a share + mr. miller said costs of incentives caused a moderate loss in the highland park mich. company 's north american car and truck business + he said the loss was n't that much different from ford 's $ N million loss on u.s. automotive operations but he declined to be specific + mr. miller said chrysler spent an average of $ N a vehicle on its incentive programs in the third quarter compared with about $ N a vehicle a year earlier a <unk> mark at the time + he said chrysler is no longer sure of its forecast for industry car and truck sales of N million in the N model year + consumers he said are <unk> at higher prices on N cars especially after seeing the <unk> prices on N models + in the nine months net was $ N billion or $ N a share including the gain from the mitsubishi stock sale compared with $ N million or $ N a share after a charge of $ N million or N cents a share for plant closings in the N period + sales rose N N to $ N billion from $ N billion + heavy losses in north american auto operations sent gm 's net tumbling to $ N million from a record $ N million + <unk> gm does n't issue separate quarterly earnings for the north american automotive business + but analysts estimated that gm had a loss of as much as $ N million on domestic vehicle operations + an N N drop in north american factory sales of cars and trucks cut into revenue and rebates to dealers and customers more than offset gains from price increases on N model vehicles delivered during the period a gm spokesman said + but gm 's results also illustrate the increasing diversity of its operations + in one breakdown gm attributed half of its net to its two big technology units electronic data systems corp. and gm hughes electronics corp + meanwhile gm said overseas auto operations are on track to exceed last year 's record full-year net of $ N billion + the diversified operations helped gm build its cash reserves exclusive of its financial subsidiary to $ N billion as of sept. N a N N increase from a year earlier + this cushion could come in handy if gm has to trim fourth-quarter north american production schedules more than the already scheduled N N + under the circumstances it wo n't be easy for gm to exceed its record N fourth-quarter net of $ N billion the spokesman acknowledged + that means it 's unlikely the company will <unk> last year 's $ N billion full-year profit even though net for the first nine months was up N N to $ N billion on revenue of $ N billion + it earned $ N billion on revenue of $ N billion in the N nine months + there are two versions of measure for measure on stage at the alley theater here + one is a strong vigorous portrayal of shakespeare 's play the other is director gregory boyd 's <unk> of <unk> <unk> rock <unk> on old vienna + measure for measure is one of shakespeare 's problem plays so named because it does not fit neatly into a category such as tragedy comedy or history + its <unk> and uneasy <unk> of the serious and the comic is no doubt one reason why it is very much in <unk> with directors just now + last season hartford stage director mark <unk> mounted a production at lincoln center and currently two other productions one just closed at the old globe in san diego and another now at the seattle rep <unk> with mr. boyd 's + in the play the duke of vienna <unk> over the <unk> of his subjects and turns over the rule of the city to the <unk> angelo hoping he can set things right + when angelo <unk> that the young man <unk> has made his <unk> pregnant before he could <unk> her angelo <unk> <unk> <unk> to death + when however <unk> 's sister <unk> a <unk> in a <unk> goes to angelo to plead her brother 's case the <unk> <unk> immediately falls in love with her and in a supreme act of <unk> demands that <unk> yield up her virtue to him in exchange for her brother 's life + meanwhile the duke who set the original scheme in motion appears on the scene <unk> as a <unk> and becomes involved in a series of <unk> that has everyone <unk> the worst possible outcome until the duke <unk> a last minute <unk> for all concerned + for the alley production scene designer peter david gould has arranged a stark but extremely effective set featuring a <unk> platform of <unk> boards that <unk> into the audience + when the action requires a prison cell consisting of an <unk> wire <unk> rolls forward on iron wheels on the platform + in the play 's major scenes mr. boyd demonstrates that he has a firm grasp of the <unk> dynamic + when <unk> <unk> <unk> <unk> her brother <unk> <unk> <unk> in his cell explaining the price she has been asked to secure his freedom when <unk> and the <unk> duke philip <unk> <unk> to <unk> angelo and when <unk> <unk> jefferies a woman <unk> by angelo <unk> him with his past <unk> the performers bring the dramatic high points to life with intense energy and intelligence + at such moments mr. boyd makes it clear that he has the capacity to be a superior <unk> of shakespeare + when however he decides to be modern or more accurately when he decides to be trendy the results are far less satisfactory + mr. boyd is of the <unk> school that believes one must find modern parallels or <unk> to make shakespeare accessible to today 's audiences + it 's a valid approach but it puts a heavy burden on the director to show an uncommon degree of <unk> and taste + in his measure mr. boyd has <unk> the <unk> and <unk> of vienna whom angelo is supposed to bring under control by converting them into <unk> <unk> <unk> and heavy metal types with a strong emphasis on leather chains and <unk> <unk> + loud rock music <unk> all the scene changes even those in the <unk> + when <unk> is arrested he is brought on stage <unk> except for the <unk> on his <unk> and <unk> + when the <unk> <unk> jack <unk> visits the <unk> to inform <unk> of her brother 's fate <unk> not only <unk> the mother superior on her rear but brings along a <unk> companion <unk> <unk> not in shakespeare 's script to <unk> <unk> + meanwhile the <unk> <unk> <unk> allen <unk> dressed in black leather and a prominent <unk> <unk> in enough <unk> gestures and <unk> <unk> to launch a space probe + the problem here is not in the concept but in its lack of discrimination + the <unk> at one point for example of a list of <unk> <unk> <unk> ranging from jim bakker and <unk> helmsley to <unk> <unk> <unk> is a bid for a cheap <unk> <unk> of mr. boyd 's ability + despite the excesses however the <unk> for the production has many more <unk> than <unk> + what 's more it represents an important step for the alley theater + measure for measure is mr. boyd 's first <unk> <unk> as the theater 's new artistic director + he succeeded pat brown who was fired by the alley board N months ago + her dismissal angered many in the regional theater establishment and led peter <unk> head of theatre communications group to write an editorial in american theatre magazine <unk> the board + none of this backlash could change the fact that ms. brown 's regime was <unk> <unk> and <unk> + now the alley has moved ahead on both artistic and financial fronts + not only is mr. boyd giving the theater a new sense of <unk> and excitement on stage the balance sheet is the best the theater has had in N years + as opposed to the $ N million deficit of the N season the N year concluded with a $ N surplus and a $ N cash reserve + <unk> last season 's runaway hit steel <unk> helped a lot but so did cost cutting and other measures insisted on by the board + only time will tell if mr. boyd can restore to the alley the <unk> it received when its founder <unk> <unk> was at the <unk> of her powers + but it is clear he is going to give it a shot + democratic leaders have bottled up president bush 's capital-gains tax cut in the senate and may be able to prevent a vote on the issue indefinitely + senate majority leader george mitchell d. maine said he intends to use senate procedures to force advocates of the tax cut to come up with at least N votes before they can address the issue + and neither democrats nor republicans are predicting that the capital-gains forces can produce enough votes + the <unk> requirement will be there and they do n't have the N votes sen. mitchell said + they do n't have the votes to get it passed + sen. bob packwood r. ore. the leading republican <unk> of the tax cut did n't disagree + i 'm not sure what 's going to happen he said + previously he had said he would be able to find the <unk> N votes eventually + sen. packwood has offered his <unk> package as an amendment to a bill now pending in the senate that would <unk> aid to poland and hungary + democrats are holding up a vote on the amendment by threatening a <unk> or extended debate + for a <unk> vote to stop the <unk> republicans must <unk> at least N votes + yesterday sen. packwood acknowledged we do n't have the votes for <unk> today + the republicans show no sign of <unk> + gop leaders continued to press for a vote on the amendment to the eastern europe aid measure + and they threatened to try to <unk> any other revenue bill in the senate with the capital-gains provision + this is serious business we 're serious about a capital-gains reduction said kansas sen. robert dole the senate 's republican leader + the strategy is let 's vote + the republicans contend that they can <unk> a majority in the <unk> senate for a capital-gains tax cut + they accuse the democrats of unfairly using senate rules to <unk> a <unk> hurdle + democrats counter that the republicans have often used the same rules to suit their own ends + the two sides also traded accusations about the cost of the packwood plan + democrats asserted that the proposal which also would create a new type of individual retirement account was <unk> with budget <unk> that would lose billions of dollars in the long run + republicans <unk> that <unk> revenue estimates were <unk> + the packwood proposal would reduce the tax depending on how long an asset was held + it also would create a new ira that would shield from taxation the appreciation on investments made for a wide variety of purposes including retirement medical expenses <unk> purchases and tuition + a white house spokesman said president bush is generally supportive of the packwood plan + marsh & mclennan cos. said it agreed to acquire the rest of <unk> & <unk> a leading west german insurance brokerage firm in which it has held a N N stake for N years + the transaction for cash and stock would represent the biggest european takeover since N for new york-based marsh & mclennan the world 's largest insurance broker + it 's also the first major sign of the long-awaited consolidation in the european insurance industry as the european community commission moves toward a single market by N + <unk> barriers will start coming down within the insurance industry next summer when big industrial companies will be able to buy insurance from carriers in any other ec country for the first time + that 's why we have been working hard to develop a single more unified presence in europe said <unk> smith marsh & mclennan 's president at a london news conference yesterday + analysts speculated that marsh & mclennan would spend between N million marks $ N million and N million marks for the rest of <unk> & <unk> or roughly N to N times the private firm 's estimated earnings + this is paying a big price to maintain their <unk> as the world 's leading insurance broker said philip <unk> an analyst at <unk> & <unk> a u.k. brokerage firm + earlier this year new york life insurance co. agreed to acquire windsor group ltd. a first step toward establishing a presence in the european market ahead of N + but most u.s. insurers have n't rushed to change the way they do business in europe because they believe the european market will still be dominated by a handful of domestic companies + under the proposed combination marsh & mclennan would gain a majority stake in <unk> & <unk> that would increase over time to the rest of the remaining N N + the three managing general partners would receive a significant number of marsh & mclennan shares said <unk> l. <unk> a partner who would also join marsh & mclennan 's board + mr. <unk> said he sought the combination because all our large clients in germany are becoming european companies or multinational companies and they expect an insurance broker to serve them as well in paris as in germany + beatrice e. garcia in philadelphia contributed to this article + washington + united technologies corp. won an $ N million army contract for helicopter modifications and spare parts + the company will modify one <unk> <unk> transport helicopter to the prototype <unk> <unk> for use by military special forces + <unk> shipbuilding inc. a division of <unk> industries inc. was given a $ N million extension on a contract for shipyard services + furukawa electric co. said it plans to increase production of computer memory devices on a large scale in the u.s. and japan + as part of the move its affiliated u.s. company international components technology corp. purchased a mexican plant formerly <unk> to <unk> <unk> products inc + the price was n't disclosed + together with two existing plants in the u.s. furukawa said it will expand its current local monthly production of memory disks to N million sheets from N + in japan furukawa said it will raise production at a plant outside tokyo to N sheets monthly from N + furukawa said the u.s. market is strengthening as related computer technology gains in <unk> and quality + primerica corp. new york raised its quarterly N N to eight cents a share from seven cents payable nov. N to stock of record nov. N + the financial services company which has about N million shares outstanding noted its continued confidence in the ongoing strength of the operations + compaq computer corp. said that its net income rose N N in the third quarter bolstered by unusual gains from its investment in a disk-drive maker and reflecting continued growth in its european operations + the computer maker said net jumped to $ N million or $ N a share from $ N million or $ N a share a year earlier + sales increased N N to $ N million from $ N million + the latest quarter 's results however included a pretax gain of $ N million or N cents a share in the carrying value of the company 's investment in conner peripherals inc. and a $ N million gain or N cents a share from the sale of one million conner shares + net for the nine months was $ N million or $ N a share up N N from $ N million or $ N a share a year earlier + sales rose N N to $ N billion from $ N billion + net for the year-earlier nine months also included a gain of $ N million or N cents a share in the carrying value of the conner investment + michael <unk> president of compaq 's north america division attributed the company 's third-quarter performance to continued increases in international sales which accounted for N N of the company 's sales a N N increase from a year earlier + over the next couple of years we would not be surprised to see europe and international sales represent N N of the company 's revenues he said + during the third quarter compaq purchased a former wang laboratories manufacturing facility in <unk> scotland which will be used for international service and repair operations + mr. <unk> said the new space will allow compaq to increase the manufacturing capacity of its plant in <unk> scotland + in new york stock exchange composite trading yesterday compaq shares fell $ N to $ N + wilson h. taylor president and chief executive officer of this insurance and financial services concern was elected to the additional post of chairman + mr. taylor N years old succeeds robert d. <unk> N who is retiring as reported earlier + mr. <unk> will remain a director + diversified investment group inc. said it agreed to be acquired by star states corp. for stock valued at $ N a share or about $ N million + diversified the holding company for fidelity federal savings & loan association said the agreement also gives star states the option to acquire N of diversified 's N shares outstanding under certain circumstances + the acquisition would give wilmington <unk> star states access to the pennsylvania market + the agreement is subject to regulatory approval and resolution of lawsuits brought by certain diversified holders in connection with the proposed merger + chandler insurance co. said it expects to report third-quarter net income jumped N N to $ N million or N cents a share + in the year-earlier quarter the automobile and trucking insurer had earnings of $ N million or N cents a share on a restated basis on revenue of $ N million + in an interview w. <unk> <unk> chairman and chief executive officer said he expects revenue in the latest quarter to total about $ N million + the <unk> figures reflect a N N stock dividend in june N + mr. <unk> attributed the earnings increase to growth in the company 's <unk> trucking insurance lines and the ability to keep premium rates firm + <unk> carbon corp. said it will build a $ N million plant for producing <unk> <unk> carbon + the maker of <unk> chemicals and equipment said it will select the plant site early next year and production is expected to begin in N + call jim wright 's office in downtown fort worth texas these days and the <unk> still answers the phone speaker wright 's office + the former congressman who resigned as speaker of the house after an investigation of his financial dealings is <unk> in his district office maintained by taxpayers on a $ N allowance + he is negotiating a rich book contract to <unk> + one of the hottest tickets on washington 's social calendar this fall was a charity benefit <unk> former congressman tony <unk> who landed a <unk> job on wall street after resigning over a controversial junk-bond investment last summer + michael deaver the former white house aide has become the most recent addition to the <unk> ranks of fallen politicians and officials earning their way as lobbyists and consultants here + mr. deaver has reopened a public-relations business + surviving scandal has become a <unk> of political passage at a time when a <unk> of scandal has <unk> this town 's <unk> + let the president demand strict new ethics rules with four sitting house members accused of sexual <unk> amid the <unk> hud scandal and after the wright debacle people are slightly <unk> by scandal says political <unk> art <unk> + it now takes something really weird to <unk> public <unk> + not all the <unk> have enjoyed soft <unk> + but many have + these people bounce back more <unk> than regular people says washington writer <unk> <unk> who is working on a history of <unk> scandal + given their own <unk> for book writing it is surprising that none of the masters of scandal survival have yet published a guide to the art + for there is an emerging protocol indeed an <unk> to it + among the rules + <unk> nothing happened + as if he were still in his old job mr. wright by resigning with his title instead of being forced from his job by law enjoys a $ N annual office expense allowance three paid staffers up to $ N for <unk> and telephones and continued use of the <unk> privilege + not to mention a generous federal pension + there is also a busy schedule of speaking <unk> at $ N a pop at tony places including the yale political union + he 's as busy as he was as speaker reports mr. wright 's administrative aide larry shannon + <unk> + on the edge of fashionable <unk> in a <unk> office with a river view and a number of corporate clients whom he wo n't name mr. deaver is trying to reclaim his reputation as one of the <unk> image makers in town + there are few <unk> of his days as white house deputy chief of staff and <unk> of ronald and nancy reagan + the former $ N <unk> lobbyist now <unk> shelters for the homeless and <unk> a third of his time counseling other recovering <unk> + i feel better than i ever have in my life he says + mr. deaver confessed to his <unk> during his trial on perjury charges + he is also a recovering <unk> <unk> with his family and creating topiary or <unk> <unk> a fashionable pursuit for which he developed a passion during his three-year legal <unk> + one sign of mr. deaver 's renaissance an appearance on abc 's <unk> for a show on pack journalism + host ted <unk> introduced him as the media master of the reagan administration with <unk> a mention of mr. deaver 's conviction in N on perjury charges + finding god + when someone says i 've turned to god everybody <unk> off observes frank <unk> an old washington hand and former aide to robert kennedy + thus have charles <unk> and <unk> <unk> launched successful <unk> careers at the <unk> + but it does n't always work so smoothly + after allegations surfaced in a N <unk> contest that he had beaten his wife sec enforcement chief john <unk> retreated to a <unk> <unk> in rural virginia + he is now in solo law practice in washington but his fees have been <unk> and he failed in efforts to win a chunk of his <unk> 's royalties on her <unk> book + from time to time he returns to the <unk> for <unk> <unk> and pro bono legal work + mr. <unk> is <unk> about his <unk> + this whole experience has been an opportunity for internal growth he says + he sees a <unk> five <unk> a week + i 've surrendered to the circumstances mr. <unk> says + the word surrender has a precise <unk> meaning + my universe has changed + i 'm enjoying my life and who i am today + the aspect of being a <unk> is n't as important + do n't <unk> + the best thing you can do is get off the screen says mr. <unk> + nobody proved that more <unk> than mr. <unk> the former democratic majority whip + declaring that there was life after congress he resigned almost immediately after media reports questioned the <unk> of a N junk-bond investment before any official investigations took hold + among the <unk> who turned out in bipartisan <unk> force to benefit the <unk> <unk> fund last month were sen. robert dole rep. <unk> <unk> and other <unk> of congress + dan rather served as <unk> + from his new <unk> <unk> on wall street as a managing director of wertheim schroder & co. mr. <unk> reports that many of his former colleagues have contacted him to find out how they too can pursue investment banking careers + it helps to be male + male scandal victims invariably fare better + anne <unk> the former epa chief who resigned under fire in N during a <unk> with congress was <unk> in the confrontation even though she was never charged with official <unk> + she worked <unk> as a consultant and wrote a book but never <unk> her <unk> legal career + it did n't help when in N she was charged and then cleared on allegations of public <unk> + i cut my losses and ran she says from her new home in colorado where she is busy remodeling + mrs. <unk> remains bitter over the overwhelming legal expenses involved in clearing her name + my husband was instantly <unk> by the very act of <unk> me she says + another former epa official <unk> lavelle is still struggling after her conviction in N on perjury charges + there 's nothing she could do to bring herself back to where she was says her lawyer james <unk> + you could say she survived but it was n't easy on her + no book contracts have been <unk> before <unk> <unk> dean the <unk> queen of the hud scandal + <unk> rice of gary hart fame failed to obtain a book contract and lost her <unk> contract for no <unk> jeans + <unk> hall oliver north 's former secretary has yet to launch a <unk> television news career according to her lawyer + <unk> jenrette the former wife of <unk> rep. john jenrette has yet to hit it big in hollywood although with roles in such movies as <unk> island massacre and <unk> <unk> 's <unk> shop she is doing a lot better than her former husband + he was back in jail over the summer on <unk> charges + be the star + central figures such as richard nixon usually fare better than those with supporting roles + richard <unk> the retired air force general <unk> in the iran-contra scandal is all but <unk> forced to sell his virginia home and pull his kids out of college according to a recent fund-raising appeal sent out on his behalf + yet his <unk> in the case also a former military officer by the name of oliver north has been <unk> and profitably <unk> his involvement in the affair + what accounts for the difference + during the televised iran-contra hearings mr. north came off as a <unk> from central casting + mr. <unk> 's performance was <unk> less <unk> + mr. north remains in heavy demand as a speaker for fees reported in the $ N range + even in the wake of hurricane hugo N people turned out in a <unk> virginia town in september for a family <unk> to mr. north given by two dozen conservative members of congress + if sex is involved all bets are off + sex scandals make people look <unk> and silly and one of the worst <unk> in washington is to be <unk> at + you can be <unk> but not <unk> says mr. <unk> + nevertheless rep. <unk> <unk> of massachusetts was <unk> <unk> because of the <unk> with which he handled <unk> that he had sex with a male congressional page in N + former rep. robert <unk> a maryland republican who lost his seat in N after he was caught soliciting sex from a <unk> boy has never regained his professional footing as a lawyer + mr. <unk> a conservative says he was <unk> by the right <unk> + conservatives shoot their own he says + if the political establishment is reluctant to <unk> sexual <unk> the private sector sometimes will + john tower was accused of <unk> and <unk> during his unsuccessful bid to win confirmation as secretary of defense earlier this year + now he is writing a book serving on an elite foreign policy advisory board and consulting for an array of corporate clients including british publishing <unk> robert maxwell + become a lobbyist + when all else fails <unk> <unk> the <unk> halls of the capitol <unk> by lobbyists and their imported shoes offers a welcome environment for fallen officials + former rep. <unk> <unk> <unk> brought down by the savings-and-loan crisis now represents you <unk> it <unk> associations + some become <unk> + john mack promptly quit his job last spring as an aide to speaker wright amid public <unk> over mr. mack 's violent attack on a young woman when he was N years old + after a few weeks in <unk> mr. mack opened a consulting firm but not to enable him to directly lobby that would require him to disclose his clients by <unk> as a lobbyist + still mr. mack says he talks to N members of congress a week + <unk> <unk> company + other scandal <unk> are sometimes the best source of <unk> + raymond <unk> the new jersey construction executive who was forced to resign as labor secretary and indicted in N only to be acquitted of fraud charges often calls other <unk> public figures to offer a sympathetic <unk> + each time a new scandal hits he says it pulls the <unk> off your <unk> + one of the first people to come to the deaver home after his troubles erupted was former nixon aide john <unk> whom mr. deaver <unk> knew + he <unk> me that the hurricane would end mr. deaver recalls + mr. <unk> received an encouraging letter from the recognized master of scandal survival richard nixon + says mr. <unk> if things get really tough i can always auction it off at sotheby 's + the canadian government with a view to becoming more politically active in latin america is expected to announce tomorrow its application to join the organization of american states a washington-based regional agency + the expected canadian move has been welcomed by the bush administration even though canada has opposed such u.s. actions as the trade <unk> against cuba the <unk> of <unk> and the military support for nicaragua 's contra guerrillas + latin american countries have long urged canada to join the oas in the hopes that it would be a <unk> to the u.s. which for many years <unk> to dominate the <unk> organization + even though the u.s. also has supported canadian membership it has n't been a washington priority + the fact that we might not side with the americans may be a reason why canada 's membership in the oas has n't been over the years an item high on the u.s. agenda said <unk> <unk> former canadian ambassador to the u.s. + the canadian application is expected to be announced in san jose costa rica by canadian prime minister brian <unk> who is attending a <unk> celebration of costa rican democracy + canada has a larger and more beneficial role to play in the <unk> mr. <unk> said recently + some canadian political <unk> have opposed canada 's joining what they see as a <unk> organization + canada could do plenty of things to get serious about latin america without running the risk of getting caught in the cross fire between the u.s. and latin american members of the oas said jeffrey simpson a columnist in toronto 's globe & mail newspaper + canada at times could be an <unk> oas partner for the u.s. if its united nations voting record is an indication + in u.n. general assembly votes last year canada voted the same as the u.s. only N N of the time + france voted the same as the u.s. N N of the time west germany N N and britain N N + larry <unk> director of the washington-based council on <unk> affairs a liberal research group said that latin american countries would be <unk> disappointed if canada were to follow the u.s. lead in the oas + latin americans see canada as a <unk> power that <unk> their sovereignty he said + the oas which tries to promote peace and economic development within the <unk> is attempting to find a settlement of the current panama political crisis + cuba has been suspended from oas membership but the organization 's members are discussing cuba 's <unk> + robert h. knight 's oct. N editorial-page article <unk> violence in comedy movies hollywood you <unk> me is interesting but somewhat <unk> + as a fan of older movies from the 1920s on i do not find modern <unk> contain violence sex and <unk> language to any greater degree than other recent movies + older movies have plenty of violence though it is portrayed in keeping with the more restrictive social <unk> of the time + for example one of my favorite movies is the N british comedy kind hearts and <unk> in which the entire comedy is based on actor dennis price 's <unk> eight titled <unk> all played by <unk> guinness because they <unk> his mother and stand in the way of his acquiring the family title + similarly one of the most popular comedy <unk> of the 1930s and <unk> was the murder <unk> + the thin man series of movies as well as many others based their entire <unk> appeal on the star <unk> ' <unk> <unk> and <unk> as other characters in the movies were murdered + further i think mr. knight made a poor choice in picking a fish called <unk> as an example of the <unk> state of modern comedy movies + the specific scene he <unk> in which pet dogs are crushed is somewhat <unk> of the <unk> <unk> that <unk> the <unk> in the old warner <unk> road <unk> <unk> + there is no <unk> <unk> <unk> portrayal of the animal 's demise + keep in mind that this is the same movie in which a character is <unk> by a <unk> only to pop right back up and <unk> in the window of a boeing N from the outside as it takes off + i will be the first to agree that there is much to be found wrong with modern movie making + many modern <unk> seem to be <unk> of writing drama or anything else without <unk> <unk> + sex and violence are routinely included even when they are irrelevant to the script and high-tech special effects are continually <unk> for good plot and character development + in short we have a movie and television industry that is either <unk> or <unk> of making a movie unless it carries a <unk> or r rating + hence <unk> amounts of <unk> sex violence and <unk> language are included as a <unk> + however these <unk> are not the exclusive property of modern <unk> and i believe mr. knight <unk> when he attempts to link this modern phenomenon too closely to a single category of movie making + michael smith + rochester telephone corp. said it agreed to buy <unk> telephone co. of <unk> <unk> + terms were n't disclosed + rochester will exchange shares of its common stock for all shares outstanding of <unk> telephone a <unk> company + <unk> serves about N access lines in western wisconsin + the average unemployment rate in the N biggest industrialized <unk> was steady in august at the N N rate of the two previous months the organization for economic cooperation and development <unk> said + the august rate was N percentage point lower than in the like month a year earlier reflecting the pickup of activity in the N countries + the <unk> said that most of the improvement occurred in the second half of last year since february of this year unemployment has been steady at around N N of the labor force + <unk> inc. said its board has approved a <unk> reverse stock split + the <unk> <unk> producer of gas and oil said it wants shareholders to approve the split because it would enhance the <unk> and trading of the stock + if approved at a shareholder meeting in december the number of shares outstanding would decrease to five million from N million and par value would rise to N cents from a penny + <unk> co. said it has agreed to buy <unk> inc. a cincinnati maker of control accessories for industrial <unk> + terms were n't disclosed but <unk> said the deal will be completed through an exchange of stock + closely held <unk> has annual sales of about $ N million + <unk> a maker of <unk> <unk> and other controls said the acquisition wo n't impact its N profit + canadian manufacturers recorded a N N decline in august in their backlog of unfilled orders statistics canada a federal agency said + the august drop was the fourth decline in five months + most of the august decrease was attributed to lower order backlogs in the primary metal and electric and <unk> industries + manufacturers ' shipments rose N N in august following two months of declines + inventories fell N N in august + burmah oil plc a british independent oil company said its west german subsidiary <unk> has a N N share in <unk> <unk> a new polish lubricants company + the remaining N N of the joint venture will be controlled by polish lubricants manufacturers refiners and technical institutes + <unk> will develop application guidelines for lubricants sell high-quality mineral oils and offer services in industrial cleaning and related fields + burmah which has a strong market position supplying marine lubricants and <unk> <unk> in poland described the joint venture as fairly small + it did n't provide details of <unk> costs + du pont co. reported that third-quarter profit grew a robust N N from a year ago on the strength of the company 's operations in various chemicals and fibers and in petroleum + du pont also raised its quarterly dividend to $ N a share from $ N a change that will increase the annualized payout to shareholders by some $ N million + du pont unlike companies hurt badly by sharp price declines for basic chemicals and plastics is benefiting from its broad range of businesses + the profit gain was made despite a weakening in the housing market for which the company is a supplier and a strengthening in the dollar which <unk> the value of overseas earnings when they are translated into dollars + the wilmington del. company reported net of $ N million or $ N a share which was in line with wall street estimates + in the year-earlier period the company earned $ N million or $ N a share + sales in the latest quarter were $ N billion up N N from $ N billion + the dividend increase was du pont 's second this year an <unk> of statements by top executives that they intend to increase rewards to shareholders + we have n't benefited the shareholder as much as we need to said edgar <unk> jr. du pont 's chairman and chief executive officer in an interview several months before he entered his current position in april + the largest <unk> will be seagram co. which owns about N N of du pont + a spokesman for seagram the montreal wine and spirits concern controlled by the bronfman family said the company will post additional pretax profit of about $ N million a year because of the additional du pont dividends + du pont also announced plans for a <unk> stock split although the initial higher dividend will be paid on <unk> shares + du pont 's stock rose $ N a share to close at $ N in new york stock exchange composite trading yesterday + seagram closed at $ N up N cents a share in big board trading + leading the gains for du pont in the latest quarter was its industrial products segment where profit soared to $ N million from $ N million a year earlier + the company benefited from continued strong demand and higher selling prices for titanium dioxide a white <unk> used in <unk> paper and plastics + james <unk> a new <unk> n.j. marketing consultant to the chemicals industry says du pont still holds an edge in making the <unk> because the company was first in with the technology to lower costs + he said du pont holds about N N of the world-wide market the largest single share at a time when growing uses for the <unk> have kept it in tight supply although others are now adding low-cost production capacity + profit climbed to $ N million from $ N million in the petroleum segment as du pont 's <unk> inc. oil company was helped by crude oil prices higher than a year ago and by higher natural gas prices and volume + in the <unk> businesses segment which includes <unk> profit grew to $ N million from $ N million + a spokesman said <unk> use in some areas of the u.s. was delayed earlier in the year by heavy <unk> thus increasing sales in the third quarter + in the fibers segment profit rose to $ N million from $ N million a gain du pont attributed to higher demand in the u.s. for most textile products + two segments posted lower earnings for the quarter + profit from coal fell to $ N million from $ N million partly because of a miners ' strike + and profit from <unk> dropped to $ N million from $ N million amid what du pont called lower demand and selling prices in certain packaging and industrial markets + for the nine months du pont earned $ N billion or $ N a share up N N from $ N billion or $ N a share a year earlier + sales increased N N to $ N billion from $ N billion + the increased dividend will be paid dec. N to holders of record nov. N + the stock split which is subject to holder approval would be paid on a still unspecified date in january to holders of record dec. N + american medical international inc. was dropped from the health care <unk> industry group of the dow jones equity market index + the company is being acquired + u.s. healthcare inc. was added to the health care <unk> group + both moves are effective today + the canadian government plans to auction on tuesday N million canadian dollars us$ N million of N N bonds due dec. N N the finance department said + proceeds of the issue will be used for general government purposes + finnish conglomerate <unk> oy ab said it reached an agreement to buy dutch cable company <unk> <unk> <unk> for N million finnish <unk> $ N million + <unk> said it will gain control over <unk> <unk> by buying N N of the shares in <unk> holding n.v. which owns <unk> <unk> + western european leaders who favor <unk> economic and monetary union are adding a new argument to their <unk> the dizzying political changes under way in eastern europe + french president <unk> mitterrand european community commission president <unk> <unk> spanish prime minister <unk> gonzalez and others have begun linking the rapid changes in the east to the need to speed up changes in the west + they are stressing that the best way for the west to help the east is to move faster <unk> western european economic and monetary unity + this would make the <unk> system more attractive to eastern countries they argue and allow greater economic aid and technological know-how to flow from west to east + the only response to the challenge being presented to us by the east mr. mitterrand told the european parliament in <unk> yesterday is to reinforce and accelerate the union and <unk> of the european community + mr. mitterrand proposed that a conference be <unk> next fall to write a new treaty for the ec allowing a european central bank and that the treaty be ratified by N + mr. mitterrand also proposed a separate bank for europe that would channel development money to the east + one basis for linking change in the east and change in the west is the notion that <unk> N million eastern europeans with N million western europeans is primarily the task of europeans despite the u.s. 's obvious strategic and economic interest + says a european strategist the u.s. tends to look at eastern europe not including the soviet union as europe looks at latin america important but far away + but for us in western europe these are europeans next door + a <unk> europe implies big changes in 40-year-old military and economic policies + there is likely to be a natural division of labor says <unk> <unk> director of the international institute for strategic studies in london with the u.s. more engaged in strategic issues with the soviet union and western europe more involved with specific aid measures for the east + the <unk> at july 's economic summit of major industrialized nations of the ec commission as coordinator of western aid to poland and hungary was a first step + in part this division is <unk> by economics west germany is a net exporter of capital while the u.s. is n't + while american aid efforts have been limited by budget problems yesterday france announced a three-year four billion french franc $ N million aid plan for poland + despite sudden changes in the strategic equation some western european leaders especially british prime minister margaret thatcher remain skeptical about european political and economic unity and are unlikely to let <unk> concerns change their minds + but british analysts are beginning to link the issues + we need a western <unk> says john roper of the royal institute of international affairs in london referring to west germany 's longstanding policy of a diplomatic opening to the east + for poland and hungary we need to think about a <unk> economic approach that would force them to price things <unk> in return for removing all our tariff barriers + he notes that the marshall plan of u.s. aid to europe did n't just throw money at <unk> europe it also <unk> and opened up those markets + the french analysis goes further + most of the west 's leaders have finally concluded that we all want perestroika soviet leader mikhail gorbachev 's policy of economic restructuring to succeed says <unk> <unk> security adviser to mr. mitterrand + but they have n't yet drawn the operational policy conclusions + he adds that with communism <unk> and mr. gorbachev scrambling to <unk> the soviet economy our interest lies in a controlled <unk> a contained nuclear reaction so we need to help him and not just with words + managing change he adds will require a lot more aid and a prominent role for the ec especially in dealing with the question of german reunification + <unk> de <unk> director of the french <unk> for international relations in paris says it is n't clear what exactly west germany wants + any push for a gorbachev vision of a common european home <unk> the eventual <unk> of the ec a <unk> partnership and the withdrawal of u.s. forces would be a very very serious problem he says + he doubts a <unk> <unk> state will emerge that would dominate europe but warns of a risk of <unk> change in the heart of the european community from a germany that is too strong even if democratic + he adds we and the rest of the ec have to talk to the germans now frankly and raise these future risks with them + while many <unk> particularly french ones worry that <unk> and emotional reaction to the changes in the east might lead to dangerous pressures for a <unk> europe or the <unk> withdrawal of american troops mr. roper in london sees a more positive scenario + there seems to be a message from moscow there 's a deal on offer he says + they want <unk> we wo n't try to undermine or destroy the warsaw pact + in return the u.k. and france could keep their nuclear weapons + he adds once both sides feel comfortable it should be that much easier to make more progress toward the economic and social reforms that are now starting in the east + <unk> technology corp. said a seattle investor has signed a letter of intent to buy the company for about $ N million or $ N a share + the investor donald a. wright plans to run the company said a spokesman for <unk> + the transaction has been approved by <unk> 's board but requires the approval of the company 's shareholders + <unk> manufactures electronic components + dominion textile inc. holders adopted a <unk> plan at the annual meeting + the so-called poison pill took effect aug. N pending <unk> by holders + rights attached to the company 's common shares were issued that are triggered if a hostile bidder acquires more than N N of the shares outstanding + once triggered the rights allow holders to buy additional shares at N N of the then current market price or at the board 's discretion to receive securities or assets + separately dominion textile posted net income of N million canadian dollars $ N million or N canadian cents a share for the <unk> quarter ended sept. N + the company had a net loss of c$ N million or N canadian cents a share a year ago + sales were c$ N million compared with c$ N a year earlier + computer sciences corp. said it received a u.s. postal service contract that will have a value of at least $ N million + computer sciences will perform data processing work for the postal service under the three-year contract which also includes two additional option years for which compensation has n't yet been fixed + computer sciences said its work will improve <unk> efficiency + for its fiscal year ended march N computer sciences had revenue of $ N billion + ohbayashi corp. agreed to buy <unk> <unk> co. the u.s. subsidiary of <unk> as of norway for about $ N million + <unk> a port washington n.y. construction concern was established in N + it has three u.s. branches + ohbayashi officials said the purchase was undertaken to participate in ventures in and around new york city + they said <unk> is particularly successful there because of its membership cooperation with local unions + ohbayashi is japan 's second largest construction company + until now its inability to form membership ties with organized labor has kept it from <unk> the lucrative new york metropolitan area construction market + the company also hopes the latest acquisition will help secure large construction orders from japanese concerns with u.s. operations + ohbayashi cited industry publications <unk> <unk> currently capitalized at $ N million with receiving orders valued at $ N million in N + the japanese company received orders totaling N billion yen $ N million from its u.s. business activities during the fiscal year ended in march + h. marshall schwarz was named chairman and chief executive officer of u.s. trust corp. a <unk> firm with assets under management of about $ N billion + mr. schwarz N years old will succeed daniel p. <unk> feb. N soon after mr. <unk> reaches the company 's mandatory retirement age of N + mr. schwarz who is president of u.s. trust will be succeeded in that post by jeffrey s. <unk> N who is executive vice president in charge of the company 's <unk> group + u.s. trust a <unk> institution that is one of the earliest <unk> worth banks in the u.s. has faced <unk> competition from other firms that have established and heavily <unk> <unk> businesses of their own + as a result u.s. trust 's earnings have been hurt + but mr. schwarz <unk> the competition in u.s. trust 's flagship businesses calling it <unk> + mr. schwarz says the competition <unk> the base of opportunity for us + other firms are dealing with the <unk> + i do n't believe they have the culture to adequately service <unk> individuals he adds + u.s. trust recently introduced certain mutual-fund products which allow it to serve customers with minimum deposits of $ N + previously the company advertised at the $ N million level + we have always taken smaller accounts but now we are looking for smaller accounts that will grow mr. schwarz says + our bread and butter is still the $ N million to $ N million account he says + the new services allow u.s. trust to cater to the new wealth mr. schwarz says + quarterly net income this year has risen just over comparable periods in N when year-end net was below the N level + in this year 's third quarter for example net was $ N million or $ N a share compared with $ N million or $ N a share a year earlier + assets as of sept. N fell to $ N billion from about $ N billion + we will have a reasonably flat year this year mr. schwarz says + mr. schwarz also said costs associated with u.s. trust 's planned move to <unk> manhattan from wall street will continue to be a drag on earnings through N + mr. schwarz 's <unk> founded the new york toy store <unk> schwarz but his family no longer has ties to the company + mr. schwarz 's father was a u.s. trust trustee until N + u.s. trust also created a <unk> office of the chairman effective feb. N + it will include messrs. schwarz and <unk> + donald m. roberts N treasurer and frederick s. <unk> N who takes responsibility for the <unk> group were named vice chairmen and will serve in the office of the chairman + mr. roberts continues as treasurer and mr. <unk> remains responsible for the offices of comptroller planning marketing and general services + frederick b. taylor N also was named a vice chairman and chief investment officer a new post + he previously held similar responsibilities + mr. taylor also was named a director increasing the board to N but is not part of the new office of the chairman + james e. <unk> N executive vice president who has directed the <unk> group will retire + sun microsystems inc. <unk> back to profitability after its first quarterly loss as a public firm said it earned $ N million or seven cents a share in the fiscal first quarter + sun a maker of computer workstations reported sales of $ N million for the quarter ended sept. N up N N from $ N million a year earlier + in the N period the company earned $ N million or N cents a share + sun 's results were slightly better than expectations + earlier this month the company said it expected to break even for the quarter on sales of $ N million + in a statement scott <unk> sun 's chief executive officer said the company 's performance was hampered by problems tied to the introduction of a major new family of computers in april + one of those new computers called <unk> N accounted for nearly half of the N systems sun shipped in the quarter he said + more than two-thirds of the systems shipped meanwhile were products introduced in april + but problems in manufacturing forecasting demand and getting the bugs out of a new management information system made it extremely difficult for sun to meet demand for its newest computers well into the summer + these problems also resulted in sun reporting a $ N million loss for its fourth quarter ended june N + mr. <unk> said the issues that hurt sun 's performance earlier this year are now largely behind the firm and he indicated that sun 's profitability should increase throughout the fiscal year + sun also reported a record backlog of orders + while this indicates continued strong demand for the company 's <unk> computers sun faces increasing competition from digital equipment corp. and hewlett-packard co + recently analysts have said sun also is vulnerable to competition from international business machines corp. which plans to introduce a group of workstations early next year and next inc + <unk> rogers jr. was named chief executive officer of this business information concern + mr. rogers N years old succeeds <unk> white N who will remain chairman and chairman of the executive committee + mr. rogers who was president and chief operating officer of <unk> will retain his position as president + the company said a new chief operating officer wo n't be appointed + a merchant bank and investment fund have agreed to <unk> a reorganization plan to bring sharon steel corp. out of chapter N proceedings and to acquire the company 's <unk> assets in a transaction valued at more than $ N million + castle <unk> inc. a new york merchant bank and quantum fund said they would acquire the assets for a combination of cash and the assumption of certain of sharon 's liabilities + the balance of the company 's assets and liabilities would be transferred to a new company that would be owned by sharon 's creditors + quantum said it has agreed to purchase as much as $ N million in equity in the new company if necessary for the confirmation of the plan + castle <unk> and quantum said the plan is expected to be filed within N days with the u.s. bankruptcy court in pittsburgh + the agreement is subject to certain conditions including obtaining financing + castle <unk> said that such financing is already being sought and that a formal proposal would be made to sharon 's chapter N trustee and other sharon creditors over the next few days + sharon based in farrell pa. filed for protection from creditors under the federal bankruptcy code in april N + the company had been one of the <unk> of miami beach financier victor posner 's empire + mr. posner resigned as president and chief executive officer of sharon in april N + he remains chairman but <unk> little power at the company + quantum fund based in new york is a $ N billion investment fund managed by <unk> fund management + quantum is sharon 's largest unsecured creditor + the castle <unk> group includes walter <unk> former chief operating officer of sharon and <unk> <unk> former executive vice president + executives at sharon declined to comment on the proposal + the company 's trustee <unk> <unk> was unavailable for comment + two old friends george bush and deng <unk> are trying to limit further damage to <unk> ties + but as congress prepares a fresh package of sanctions against beijing the <unk> relationship could get worse + the problem for congress will be to weigh what china is saying to its people against the more <unk> message it is delivering to the bush administration + in a move apparently aimed at heading off new punitive legislation mr. deng sent an indirect signal to washington via <unk> lee a columbia university <unk> who met mr. deng and other chinese leaders in beijing last month + when he met with mr. bush on his return mr. lee says he told the president that the chinese made statements to me that i regard as a first step toward reconciliation + the communication mr. lee brought represents the softer line the u.s. has been hoping to hear from chinese officials since the june N massacre of pro-democracy demonstrators in beijing + the chinese leader mr. lee informed mr. bush expressed some regret for what had happened in beijing and conceded that china 's officials <unk> some responsibility + mr. lee says mr. deng told him we should not mind those who participated in demonstrations signed <unk> materials and went on <unk> strikes + mr. deng added says mr. lee that we really made mistakes + we must not <unk> our responsibility and we can not just blame the demonstrators + mr. lee also reported to the president that in a separate meeting communist party chief <unk> <unk> said the chinese leadership looked <unk> on the students who took part in the demonstrations + mr. <unk> also pledged that the chinese red cross would publish very soon a list of those killed + and he told the <unk> that china 's leaders were very much concerned about the deaths and had arranged aid for the victims ' families + i <unk> my conversations to the white house prof. lee says + but he adds i was not acting as a <unk> + he says that the chinese never asked him to convey their statements to president bush but that the white house <unk> invited him to do so + mr. lee concedes the statements made to him are far different from others being issued in china but attributes that to the fact that the situation in china is very complex + according to u.s. sources in beijing the administration hopes mr. deng 's fairly <unk> comments will <unk> congress to be cautious about further sanctions against beijing + the president does n't want to have legislative sanctions says a u.s. official + but he may not have a choice + given china 's <unk> statements to its own people mr. bush may be unable to prevent new sanctions + beijing officials have said they will step up the campaign of <unk> and <unk> against those who participated in the demonstrations + sentences have been stiff + a university student got eight years for participating in the rallies sources in beijing said while an <unk> worker got N years + nor has beijing hinted to its citizens that it will publish the <unk> of those killed + so far the victims are officially considered <unk> and their families receive no compensation + a man <unk> down by a <unk> bullet while cycling to work carries after his death the official <unk> of <unk> his wife says + what 's more much of china 's official rhetoric is hostile to the u.s. + china frequently <unk> the u.s. embassy for <unk> <unk> <unk> <unk> a political dissident who took refuge there after the massacre + in the u.s. there are still people who want to crush china and interfere in our internal affairs <unk> <unk> china 's new ambassador to the u.s. said as he left for washington last week + the house and senate are to begin soon <unk> out an agreement for sanctions legislation + it will probably be attached to a state department authorization bill which mr. bush is n't expected to veto + a congressional <unk> involved in <unk> the sanctions says they are likely to mirror those mr. bush enacted shortly after the massacre + but as legislative action they would carry greater weight and would be more difficult to <unk> + measures already in effect that are expected to be made law include a ban on military sales and exchanges a suspension of most <unk> government contacts and a halt to u.s. trade <unk> programs such as the overseas private investment corp. and the trade development program + <unk> those sanctions could prompt chinese <unk> + if the two sides are n't careful <unk> ties could spin downward out of control says a u.s. official in beijing + bush and deng are hoping that <unk> heads prevail + the amount of blood surgical patients can <unk> and store before surgery can be increased by the new genetically engineered drug epo + epo or <unk> is a protein the human body makes to stimulate the growth of red blood cells + a genetically engineered version of the human protein developed by amgen corp. of thousand <unk> calif. recently has been marketed by the <unk> pharmaceuticals division of johnson & johnson + a competing version of epo is being developed by genetics institute inc. in cambridge mass + the drug is being used primarily to treat <unk> + a new experiment reported in this week 's new england journal of medicine involved giving <unk> of amgen 's epo to N patients who wanted to store units of their own blood + the patients began receiving epo <unk> about a month before their scheduled surgery + they then began donating blood twice a week receiving an epo injection each time + if tests indicated a low number of red cells blood was n't taken + the <unk> patients donated an average of N units of blood each compared with only N units donated by a similar group of surgical patients who received a <unk> injection + the volume of red cells donated by the <unk> patients was N N higher per <unk> the research team representing a number of hospitals and blood banks reported + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + tax shelters called individual retirement accounts or iras were created without fanfare on sept. N N but grew beyond expectations as an <unk> to personal saving + that labor day in his first major act after succeeding the resigned richard nixon as president gerald r. ford signed the employee retirement income security act + pension reform was its main thrust + labor and business leaders quoted at the white house rose garden <unk> hailed its provisions for <unk> corporate pension benefits + iras were like <unk> there + the ira 's conception is <unk> + in N then treasury secretary george <unk> with the key support of sen. carl <unk> sought some form of <unk> for the uncovered + that year a <unk> group headed by william <unk> in the legislation and regulations division of the office of the chief counsel for the internal revenue service was assigned the task of designing a plan + they used the N <unk> plan a pension plan created by a new york congressman for the self-employed as a partial model + this team initially called its new model personal retirement account or <unk> + but it did n't <unk> + so they opted for ira naming it after ira cohen a brilliant irs <unk> who helped them + ira himself confirms this account + ira rules have been changed over the years + one in N raised to $ N a year from $ N the amount a person could put <unk> into the <unk> accounts and widened coverage to people under employer retirement plans + this caused an explosion of ira promotions by brokers banks mutual funds and others + but in N congress sharply reduced the number of people who could qualify for its benefits and ira <unk> slowed their <unk> growth + ira account assets have grown to about $ N billion from $ N billion last year and just $ N billion in N + the soviet state bank announced a N N devaluation of the ruble against the dollar for private transactions in an apparent attempt to curb the nation 's rapidly growing black market for hard currency + the measure which will take effect next wednesday will create a two-tier exchange rate + commercial transactions will continue to be based on the official rate of about N rubles to the dollar + but for soviet citizens who travel abroad for business or tourism the rate will jump to N rubles to the dollar + tass news agency said the devaluation also will apply to foreigners ' transactions + but it did n't elaborate and it remains unclear how far western tourists and foreigners living in moscow will be allowed to benefit from the sweeping rate cut + the current ruble rate has long been out of line with the black market + as soviet leader mikhail gorbachev has opened up the country to foreign trade the <unk> has become ever greater + western tourists in the soviet union who could exchange a dollar <unk> illegally for about four rubles a year ago are now being offered N rubles or more + even at such rates black <unk> have been able to make big profits because of the dire shortage of consumer goods here + they use dollars to buy western items such as video recorders and personal computers and then sell them at a huge <unk> + the going rate for a small personal computer that costs about $ N in the west is anywhere from N to N rubles + even a pack of N western cigarettes can fetch N rubles or more + with more than N billion rubles in savings accounts and little to spend them on soviet consumers <unk> at the <unk> <unk> prices for such goods but they buy them anyway + moscow has already <unk> admitted that the ruble is n't worth much announcing in august that it will pay soviet farmers in hard currency for grain and other produce that they grow in excess of <unk> quotas + the <unk> of the official rate should seem obvious to everyone the afternoon newspaper <unk> wrote in a brief commentary on the devaluation + the state bank 's move is part of a drive to iron out exchange-rate discrepancies as moscow moves toward making the ruble convertible a goal that soviet bankers and economists say is still far away + rumors of an impending devaluation have been circulating in moscow for weeks but the size of the cut took many western bankers by surprise + it 's much bigger than we expected said one german banker who asked not to be named + the next step which could have a larger effect on businesses will come early next month when the bank for foreign economic affairs is to hold its first auction of foreign currency + soviet companies <unk> western currencies to buy equipment and supplies abroad will be able to submit bids + plans for the auction which was supposed to take place last spring and become a regular event have been <unk> by a lack of hard currency + soviet firms that hold some are unwilling to part with it and joint ventures are n't yet allowed to participate + the kremlin also has been unwilling to provide hard currency for the auction using a lot of it instead to finance emergency imports of consumer goods + if foreign tourists and businesses could sell their currencies freely at the new better exchange rate that would enable the state bank to increase its dollar reserves and would <unk> up some of the excess rubles in the economy at the same time + but the amounts they exchange may be limited most soviet hotels for example demand payment in hard currency from western visitors + unless other rules are changed the devaluation could cause difficulties for the people it is primarily meant to help soviets who travel abroad + over the past three years thousands of people here have made use of <unk> travel restrictions to get their first taste of life abroad + but under current rules they are allowed to change just N rubles into dollars and other currencies for each trip + at the new rate that would give them about $ N to travel on + it is n't yet clear whether the <unk> limit will be lifted + if it is n't the black market for dollars probably will continue to <unk> + international business machines corp. made news this summer when it landed an unusual contract to manage all of eastman kodak co. 's <unk> needs + but the computer giant appears to have lost a second key contract with kodak to archrival digital equipment corp + kodak yesterday confirmed that it has entered negotiations with maynard <unk> digital to manage all of its voice and data communications needs + kodak based in rochester n.y. said ibm also had bid for the business + ibm is based in armonk n.y + the loss is a setback to ibm which pointed to the kodak contract as an example of its success in systems integration + that 's an emerging business in which computer makers or consultants provide <unk> communications and computing services to major corporations + a kodak spokesman declined to disclose the potential value of the contract which is still in negotiation + he said that american telephone & telegraph mci communications corp. rochester telephone corp. and ibm itself would likely be digital 's <unk> on the project + when we decided to look outside the company for critical <unk> and communications services we wanted to get the best vendor for that service said paul allen the spokesman + that 's why we went with ibm for data center management and now digital for voice and data telecommunications + this year is the <unk> anniversary of the federal reserve system and some members of congress think it 's time to take a fresh look at the nation 's central bank + after N years there may be a few things that are worth <unk> + the regional federal reserve bank <unk> for instance may be out of date + in earlier years it may have seemed reasonable to give richmond va. a bank and allow los angeles only a branch of the san francisco bank but times have changed + maybe the whole regional system is an <unk> the fed after all is a national central bank + some of the would-be reformers however want to restore an arrangement we once had or at least part of it + in the beginning the treasury secretary and the comptroller of the currency were both <unk> <unk> members of the federal reserve board + but in N when congress was trying to find someone or something to blame for the great depression it decided to drop both the secretary and the comptroller from the board + carter glass a former treasury secretary who was then back in congress probably influenced the decision + he said that when he was on the board he felt that he had a great deal of power and somehow he did n't think that was a good thing + times have changed + rep. <unk> <unk> d. <unk> has introduced a bill in congress <unk> by rep. lee hamilton d. ind. that would put the treasury secretary back on the board + there is doubt that the change would accomplish much but at least congress as in N would be doing something + so far no one has suggested putting the comptroller back on the board + nicholas brady the incumbent treasury secretary is of course aware of the proposal and he does n't like it much + mr. <unk> has changed tactics dropping the <unk> idea + that may have pleased the secretary but h. erich <unk> chief economist of the investment firm of <unk> <unk> & co. suggests that mr. brady may figure he already has all the power he needs + like most treasury secretaries mr. brady takes a keen interest in monetary matters of course + he was in fact taking an especially keen interest in board matters even before he went to the treasury + after the october N market crash mr. brady as a private citizen headed a presidential commission that tried to decide what went wrong and what should be done about it + one of the commission 's recommendations was that a single agency probably the federal reserve should coordinate regulation of all financial markets + this recommendation might have encouraged a <unk> bureaucrat to try to expand his power but so far federal reserve chairman alan greenspan has n't made a pitch for the job + the fed has plenty of responsibilities in times of market turmoil and in N and again in N it appears to have handled them well + mr. brady has said he thought government agencies in the latest market drop were better prepared to coordinate their actions but he has left no doubt that he still likes the ideas the commission advanced nearly two years ago + in recent weeks moreover mr. brady has joined other administration officials in trying to urge the fed toward lower interest rates + the urging <unk> has been <unk> + in an interview with the washington post in early october the secretary said the fed may be slightly more interested in curbing inflation than the administration is while the administration may put slightly more emphasis on spurring economic growth + at least some economists of course would argue that inflation deserves a lot of emphasis + earlier this month the st. louis fed held a conference to assess the system 's first N years + <unk> <unk> a <unk> university economist noted that the fed 's record included the longest most sustained <unk> inflation in our history dating from either N or N to N + the <unk> argument is an old one but mr. brady on the board or off is surely trying to influence fed policy + equally <unk> the treasury secretary has <unk> the administration effort to bring the u.s. dollar down by shopping <unk> for west german marks and japanese yen + the treasury can do something on its own but to have any hope of success it needs help from the fed + the central bank has been helping but apparently not especially <unk> + the fed has been <unk> in foreign currency markets all right but through august at least it appeared to be <unk> the intervention + in other words it was offsetting purchases of marks and yen by buying dollars in the domestic money market + now <unk> intervention may have some effect + when traders see the fed is in the exchange market it may make them <unk> a little carefully for fear of what the central bank may do + but it 's generally accepted that <unk> intervention has little or no lasting impact on currency values + after august the fed may have stopped <unk> but it 's hard to see much impact on the dollar + the dollar is still highly volatile + the fed has let interest rates slip slightly but whether the main reason was dollar intervention the gloomy reports on manufacturing employment or the friday N market drop only mr. greenspan and his associates know + earlier this year martin <unk> president of the national bureau of economic research argued <unk> that a government that wants steady stable exchange rates might try some steady stable economic policies + trying to manage exchange rates to some <unk> level he said would mean <unk> monetary and fiscal policies from their <unk> roles and thereby <unk> excessive inflation and unemployment and inadequate capital formation + the more we think about it the more we suspect mr. brady does indeed have enough power where he already is + this has been a week of stunning events behind what was once called the iron <unk> and interesting shifts in official american policy toward moscow + it has also been a week when <unk> washington has had a high old time <unk> over <unk> reagan 's multimillion-dollar <unk> in japan + the latter may seem oddly irrelevant if not downright <unk> given the big picture and the way we have handled it in the nation 's capital has done nothing to <unk> that impression + in fact however mr. reagan 's casual <unk> of the office he so recently held raises issues about which americans can actually do something + our ability to influence the outcome of events in eastern europe and the soviet union is far more marginal + those events continue to move at a rate and in a direction which leave informed commentary let alone policy far in their wake + earlier this week soviet foreign minister eduard a. shevardnadze confessed that the u.s.s.r. ignored universal human values by <unk> afghanistan and to put it <unk> engaged in a violation of the abm treaty by building its radar station at krasnoyarsk + hungary is no longer a socialist peoples republic the communist party no longer has automatic delegates in the u.s.s.r. 's congress of peoples deputies and egon krenz was not backed unanimously by his fellow party <unk> when he took over as east germany 's new maximum leader + all of that is just for <unk> or so the hundreds of thousands of eastern europeans in the streets seem to hope and are certainly demanding + of like though lesser note secretary of state james baker put the administration <unk> behind perestroika and glasnost and therefore behind mikhail gorbachev in a pair of carefully <unk> <unk> over the past week or so + and last but not least president george bush now views the changes in eastern europe as absolutely extraordinary and believes that mr. krenz ca n't turn the <unk> back in east germany because the change is too <unk> as he told the new york times 's <unk> apple jr + in other words after some highly visible <unk> and public airing of differences the administration has come down on the side of those who believe that what we are <unk> from berlin to <unk> is a good thing to be welcomed rather than a new thing to be feared or viewed with <unk> + all of this is what history will note assuming that events do n't make it seem a bad joke when the record of this time is put down + for journalists however who write what they <unk> view as history 's first draft this has also been a week to give a lot of space and time to ron and nancy 's sales appearance in japan on behalf of a communications giant and its controversial founder + it has been a <unk> transaction this <unk> away of the prestige of the republic 's highest office + the japanese <unk> has <unk> up at least $ N million the japanese government has put up just about as much or so it is reported and at least one estimate puts the total <unk> at $ N million + all of which has enabled those of us in washington who enjoy <unk> in such things to go into high public <unk> as mr. apple and i did the other night on abc 's <unk> + <unk> away we raised what i still think were all the right issues and landed more than one hard blow but at the end of the affair there was just the <unk> nagging worry that we had been aiming at the wrong target + as one of his defenders so <unk> put it president reagan was simply doing what he had always done before his election and some would say thereafter as well + he was performing for pay and why should anyone expect anything more + primarily because there 's more to the matter than ronald reagan 's personal values or lack of them + selling the presidency for a mess of <unk> is not so much a devaluation from the <unk> of public life today as it is a reflection of the <unk> of public standards + the theme song for the 1980s has been anything goes and it has been <unk> with <unk> from wall street to some of the highest <unk> of <unk> + there are those who say that this is nothing new that america has always suffered from a bad case of <unk> when it comes to the <unk> between what is <unk> and what is practiced + there is evidence to support that view + <unk> years ago william james wrote to <unk> wells the moral <unk> born of the exclusive <unk> of the <unk> <unk> success that with the <unk> cash interpretation put on the word success is our national disease + but if it was the national disease in N it is today the national <unk> + if there is no law against it do it + if the law leaves <unk> use them + if there is no moral prohibition that <unk> <unk> it full speed ahead + and if you are caught or if people complain simply argue that everyone does it or no one said i should n't and <unk> it out + as a last <unk> when all else has failed and you are <unk> <unk> for having disappointed those who trusted you but deny having actually done anything wrong + see for instance jim bakker 's remarks upon being sentenced to prison this tuesday for <unk> the <unk> + consider the troubling <unk> between mr. shevardnadze 's speech of <unk> this week and the <unk> defense of everyone concerned with the iran-contra affair + the soviet foreign minister publicly concedes that his government violated <unk> of behavior in afghanistan and just plain <unk> about the radar station + we have people in high place still lying through their teeth about iran-contra and that apparently is n't going to change + for that matter those long ago identified as <unk> are still given <unk> hearings in the press + that is the key to the current national disease + no one seems willing to hold anyone in public life to a standard higher than the <unk> construction of the law + the <unk> media <unk> hunt about some politician 's private <unk> notwithstanding the general <unk> is to offer a version of the old <unk> who am i to judge + thus no standards no judgment and no values + you are mad because he 's making so much money say president reagan 's defenders + no we ought to be mad because he has <unk> the office we gave him <unk> it in the service of private gain just as we ought to be mad that public officials lie through their teeth play <unk> games about their activities or to steal a phrase make public service a private trough + i 'm not going to be <unk> into <unk> to any of this president bush told mr. apple in this week 's interview + he was referring to the absolutely extraordinary events in eastern europe and it is a <unk> position + but there is no defense at all for the <unk> of the 1980s + we did n't <unk> into it we <unk> and slipped down the long <unk> and now we have as its <unk> symbol a former president <unk> for a foreign <unk> + or perhaps that is a <unk> symbol for the united states of N everything for sale nothing of real value + mr. carter is a political <unk> who heads a television production firm + cineplex odeon corp. directors said the company 's chairman and chief executive <unk> drabinsky is considering bidding N million canadian dollars us$ N million to acquire the company + the board said mr. drabinsky and vice chairman <unk> <unk> are negotiating financing before offering c$ N a share to acquire all of cineplex 's shares outstanding + the directors added that the two executives have n't reached a final decision to proceed with a bid and that until an offer is made the board will continue seeking higher offers from other bidders + the directors said if messrs. drabinsky and <unk> mail an offer to shareholders by nov. N it will reimburse them a maximum of c$ N million for expenses related to a bid + we consider that his bid is an acceptable bid said <unk> <unk> spokeswoman for the independent directors ' committee appointed last may to <unk> and review bids for the company in the wake of a dispute between mr. drabinsky and cineplex 's major shareholder mca inc + mca and cineplex 's other major shareholder <unk> financier charles bronfman and his associates have agreed to tender their holdings to an offer by mr. drabinsky unless a higher offer is made by another bidder + mca holds half of cineplex 's equity and N N of its voting rights through restricted voting shares while bronfman interests hold about N N of the company 's equity + ms. <unk> said the committee had received other bids + she declined to identify other bidders but said mr. drabinsky 's offer is all cash and it 's for all of the company + several cineplex analysts have speculated that outside bids received by the committee were either <unk> low or for only part of the company + all this has really established is that mca and the <unk> have agreed on a price at which they can be bought out said <unk> <unk> an analyst with <unk> <unk> in los angeles + if a bid <unk> at that price shareholders will have every reason to be glad but the question of financing still remains + last april mr. drabinsky and a group of financial backers planned to acquire up to N N of cineplex for c$ N a share from bronfman associates + mr. drabinsky who would have had the right to vote those shares for two years said the purchase subsequently rejected by regulators was aimed at consolidating his control of the company + mca strongly opposed the drabinsky group 's move + the directors did n't indicate the source of financing for mr. drabinsky 's new proposal but said mca and the bronfman associates agreed in principle to buy for $ N million and then lease back to cineplex its <unk> theater complex in universal city calif. if mr. drabinsky succeeds in an offer + this is being done at the suggestion of mr. drabinsky and to accommodate him to facilitate his financing arrangements ms. <unk> said + in addition the directors said if a bid by mr. drabinsky is successful cineplex expects rank <unk> plc to acquire the N N of cineplex 's film house unit it does n't own and provide mr. drabinsky with additional loan financing + michael <unk> rank 's chief executive said the british theater chain 's total involvement would n't exceed $ N million but declined to give a breakdown between the loan financing and the proposed film house purchase + cineplex shareholders responded <unk> to yesterday 's announcement + in trading on the new york stock exchange cineplex closed at $ N down N cents with more than a million shares changing hands + on the toronto stock exchange cineplex closed at c$ N off N canadian cents well below the c$ N level + where 's the bid asked pierre <unk> an analyst and broker with toronto securities dealer <unk> st. lawrence ltd + mr. <unk> said he does n't think messrs. drabinsky and <unk> are anywhere close to arranging financing and that investors will need a solid offer before the stock begins to rise again + mr. drabinsky could n't be reached for comment + two west german chemical companies announced steps that apparently are designed to boost the chemical industry 's standing among environmental groups and the general public + hoechst ag 's chairman <unk> <unk> said the company wants to have a substitute product to completely replace <unk> chlorofluorocarbons by N + in april hoechst the largest producer of cfcs in west germany said it wanted to reduce production of the product by N N by N + mr. <unk> said hoechst will invest N million marks $ N million in a plant to make a substitute product it has developed that it says is <unk> + the company hopes the new plant likely to be built in frankfurt will be able to produce N tons a year + this year hoechst will produce about N tons of cfcs in factories in frankfurt spain and brazil + of hoechst 's N billion marks in group sales in N N million marks came from sales of cfcs + also <unk> ag another large chemicals company said it formed a separate division that will study the environmental impact of plastics and will investigate all possibilities of recycling plastics + george l. <unk> N years old senior vice president of texas eastern corp. was elected a group vice president of this <unk> concern + mr. <unk> who succeeds retiring richard c. <unk> will be responsible for gas supply regulatory affairs and marketing and transportation and exchange for <unk> eastern pipe line co. <unk> gas co. texas eastern transmission corp. and <unk> gas transmission co + all of the companies are units of <unk> eastern corp. which acquired texas eastern corp. earlier this year + <unk> coors co. said its coors brewing co. unit will test market a new line of bottled water in the west beginning early next year + the move which was expected marks the first time since prohibition that coors has sold a <unk> beverage and marks the company 's entry into a crowded but fast-growing market that generated about $ N billion in sales last year + coors is hoping to become one of the first companies to distribute bottled water nationwide + <unk> sold by <unk> group of america a unit of source <unk> s.a. of paris and <unk> sold by a u.s. unit bsn of france are distributed to urban areas nationally but are less available in rural communities + coors with its large <unk> network could <unk> more markets + the company said the water will be called coors rocky mountain <unk> water and will come from the same mountain spring as water used in coors beer + the company said it will sell the water plain and with <unk> and cherry <unk> and will package it in <unk> bottles and N ounce bottles as part of <unk> + the test markets though not specified will be in northern california arizona and colorado some of the hottest <unk> markets + some of america 's biggest trading partners gave a quick <unk> to a u.s. proposal to <unk> world trade and reduce <unk> subsidies + in geneva where world trade talks are being held under the general agreement on tariffs and trade or gatt the european community called the u.s. proposal a step <unk> + and japan 's minister of agriculture <unk> and <unk> told a committee of japan 's parliament that washington 's proposal was <unk> and that tokyo would continue to heavily subsidize its rice farmers + the u.s. in a far-reaching plan submitted to the geneva meeting tuesday proposed curbing price support subsidies within N years and eliminating export subsidies within five years + u.s. officials said the plan was flexible and was intended as a <unk> approach for gradually removing <unk> subsidies + but the ec reacted <unk> arguing that the proposal 's main aim is to destroy the common agricultural policy the ec 's $ N <unk> price support program + the american proposal is not an adequate basis for negotiation the ec said in a statement + ec officials say they are <unk> that the u.s. has set a specific timetable and is insisting on the elimination of export <unk> not just reduction + ec agriculture commissioner ray <unk> said the u.s. plan calls into question the agreement reached by world negotiators last april in geneva seeking substantial <unk> reductions in agricultural support and protection + u.s. deputy trade representative <unk> katz replied that the proposal was entirely consistent with the april accord + he said he was surprised by the ec 's reaction calling it <unk> even <unk> + the u.s. proposal also was criticized by <unk> developing countries who said that the u.s. made no special <unk> for poor nations + while many experts argue that <unk> nations would eventually become <unk> in a free-market system the poorest nations are likely to need help in the meantime + ambassador katz said the u.s. was open to discussing particular problems of developing countries + the u.s. administration said its plan would allow considerable flexibility in determining how and when the <unk> goals would be achieved + the u.s. argues that its plan would ease the transition to <unk> agriculture trade by converting certain <unk> barriers into tariffs that together with existing tariffs then would be phased out over N years + but the ec is strongly opposed to converting agricultural supports into tariffs + the new u.s. package also says countries could temporarily raise tariffs on certain products if they experience an unusually heavy volume of imports + it would establish procedures to prevent countries from using health and <unk> rules to <unk> trade <unk> + seeking to <unk> european concerns u.s. agriculture secretary <unk> <unk> said in washington that the new u.s. plan would n't put farmers out of business but would encourage them to grow what the markets desire instead of what the government wants + the ec with a population of N million has N million farmers while the u.s. with a population of about N million has only two million farmers + japan 's objections to the u.s. plan center around its desire to stay <unk> in rice a <unk> food even though foreign producers are far more efficient + bell atlantic corp. said it agreed definitively to acquire one of control data corp. 's <unk> businesses + terms of the accord were n't disclosed + control data 's <unk> maintenance unit services products primarily made by digital equipment corp. and international business machines corp + the unit has N customers and according to one analyst had N revenue of about $ N million + under the agreement which had been widely expected bell atlantic would be buying control data 's customer base and its approximately N u.s. maintenance facilities in about N cities + however control data would continue to provide maintenance services for customers of its <unk> product line + the unit represents a small portion of <unk> control data 's overall <unk> business which last year posted sales of about $ N million + earlier this year the company sold a similar unit in europe for about $ N million + lawrence perlman control data 's president and chief operating officer said the maintenance business no longer fits into the company 's strategy to be a data solutions company + thomas <unk> president of bell atlantic 's customer services division said the acquisition would give the company 's <unk> <unk> unit added expertise in the increasingly sophisticated workstation and high-end mainframe technologies + two recent decisions by federal courts cast judges in the odd role of telling authors how they should write history and <unk> + these decisions deserve more attention than they have received from scholars and from journalists as well + russell miller 's bare-faced messiah the true story of l. ron hubbard is a <unk> of the founder of the church of <unk> + mr. hubbard who died in N <unk> the <unk> on his <unk> to his church which licensed them to new era publications a <unk> corporation + in N new era sought a permanent injunction to restrain henry holt & co. from publishing bare-faced messiah on the ground that mr. miller 's quotations from mr. hubbard infringed the <unk> + the publisher argued in response that the fair use statute permits <unk> for purposes such as criticism comment news reporting teaching <unk> or research + district court judge pierre leval denied the injunction on the ground that new era had failed to make its claim within a reasonable time the doctrine lawyers call <unk> + as for the merits judge leval said that mr. miller had written a serious book of responsible historical criticism + <unk> <unk> the judge believed was justified in order to prove points the author had asserted about mr. hubbard <unk> <unk> <unk> and other <unk> <unk> that could not be <unk> demonstrated without use of mr. hubbard 's own words + the <unk> judge leval wrote should not be required simply to express conclusions without defending them by example + in such circumstances <unk> interests <unk> the interests of the copyright owner + but judge leval felt <unk> by an earlier decision of the second circuit court <unk> a <unk> of <unk> salinger to quote from mr. salinger 's personal letters + he distinguished the two cases in salinger judge leval noted the quotations were for the purpose of <unk> the <unk> rather than of proving points about the subject + still the salinger decision created a strong <unk> against fair use of unpublished materials + judge leval <unk> concluded that a few of mr. miller 's quotations from mr. hubbard 's unpublished <unk> because they were not necessary to prove historical points failed the <unk> test and therefore infringed copyright + but the proper remedy judge leval said lay in a suit for damages not in an injunction + the case went on appeal to the second circuit + in a decision in april of this year judge roger <unk> joined by judge frank <unk> agreed on denying the injunction and did not doubt that bare-faced messiah was a serious work but rejected judge leval 's argument that the public interest in <unk> could outweigh the <unk> of copyright + we conclude the two judges wrote that <unk> is the sole bar to the issuance of an injunction + had the suit been filed in time they said bare-faced messiah would have been <unk> + this was too much for james oakes the court 's chief judge + in a powerful separate opinion judge oakes further distinguished the salinger case by pointing out that a living person like mr. salinger had privacy rights that did not apply to a dead man like mr. hubbard + i thought that salinger might by being taken in another <unk> context come back to <unk> us + this case <unk> that concern + decisions by the second circuit itself judge oakes continued had recognized that public interest in the subject matter and the <unk> in particular cases of <unk> quotations are vital components of fair use + and the injunction judges <unk> and <unk> would so readily have granted had new era sued in time + <unk> of the book judge oakes observed would operate as a prior restraint and thus involve the first amendment + moreover and here judge oakes went to the heart of the question responsible <unk> and <unk> constantly use primary sources letters <unk> and <unk> + indeed it would be irresponsible to ignore such sources of information + now scholars in <unk> their responsibility do not claim the right to <unk> every collection of papers that bears upon their topics of investigation + and of course they agree that people can impose restrictions on the use of their papers whether in their own <unk> or as donated or sold to <unk> + but in the bare-faced messiah case the author found most of his material in court records or via the freedom of information act + and when responsible scholars gain legitimate access to unpublished materials copyright should not be permitted to deny them use of quotations that help to establish historical points + judges oakes and leval understand the requirements of historical <unk> + judges <unk> and <unk> do not appear to have a clue + yet at the moment they are the judges who are making the law + as matters stand the salinger ruling torn from context and broadly <unk> is controlling + if an author quotes more than minimal amounts of unpublished <unk> materials as the salinger decision had it he deserves to be <unk> + the courts have not defined minimal amounts but publishers i understand take it to mean about N words + the bare-faced messiah decision strikes a blow against the whole historical enterprise + a second decision handed down in august by the court of appeals for the ninth circuit is another blow against <unk> + <unk> malcolm a professional writer on psychiatric matters wrote a series of articles for the new yorker later published in book form by <unk> under the title in the <unk> <unk> + the articles were largely based on interviews ms. malcolm had taped with jeffrey masson a <unk> who had served as projects director of the <unk> <unk> + mr. masson then brought a libel suit against ms. malcolm the new yorker and <unk> + as a public figure mr. masson had to prove <unk> and as proof of <unk> mr. masson contended that <unk> quotations <unk> to him by ms. malcolm were in fact <unk> + the quotes could not be found on the tapes and the two judges who decided the case for ms. malcolm and her publishers conceded that for the purpose of their decision we assume the quotations were deliberately altered + for all <unk> and most journalists this admission would have been sufficient to condemn the malcolm articles + but judge arthur <unk> joined by judge cynthia <unk> hall took the <unk> position that it is perfectly ok to <unk> quotations so long as a judge finds that the <unk> do not alter <unk> content or are rational <unk> of <unk> remarks + in his <unk> dissent judge alex <unk> observed that when a writer uses <unk> marks in reporting what someone has said the reader assumes that these are the speaker 's precise words or at least his words <unk> of <unk> and you know and <unk> error + while judges have an obligation under the first amendment to <unk> freedom of the press the right to deliberately alter quotations is not in my view a <unk> of a free press + ms. malcolm for example wrote that mr. masson described himself as the greatest analyst who ever lived + no such statement appears on the tapes + the majority cited mr. masson 's remark it 's me alone against the rest of the <unk> world as warrant for the malcolm fabrication + but as judge <unk> noted the context shows that mr. masson 's me alone remark referred not to his alleged <unk> in his profession but to the fact that his position on a particular issue was not shared by anyone else + ms. malcolm had mr. masson describing himself as an intellectual <unk> + again no such statement appears on the tapes + the majority decision contended that the phrase was a rational interpretation of mr. masson 's <unk> of himself as a private asset but a public liability to <unk> <unk> and that in any case it was not <unk> + judge <unk> found the <unk> entirely <unk> and writes that for an academic to refer to himself as an intellectual <unk> is a devastating admission of professional dishonesty + these were only two of a series of <unk> that had in judge <unk> 's words the cumulative effect of making mr. masson appear more arrogant less sensitive <unk> more <unk> and less in touch with reality than he appears from his own statements + as robert <unk> wrote in a review of ms. malcolm 's book mr. masson emerges as a <unk> <unk> and in the end a <unk> fool + but it is not <unk> malcolm who calls him such his own words reveal this psychological profile + we now know that the words were not always his own + there is one <unk> rule of journalism john <unk> has said + the writer must not <unk> + should the green light judges <unk> and hall have given to the fabrication of quotations become standard practice it will notably reduce the value of journalism for <unk> and for citizens + as judge <unk> put it to <unk> the right to deliberately <unk> what someone else has said is to <unk> the right to lie in print + masson has lost his case but the defendants and the profession to which they belong have lost far more + the historical profession will survive these decisions + perhaps in time the supreme court will correct them + but writing history is tough enough without judges <unk> throwing obstacles in the scholar 's path + mr. <unk> is albert <unk> professor of the <unk> at the city university of new york and a winner of <unk> prizes in history and <unk> + <unk> <unk> N years old senior vice president marketing at <unk> entertainment inc. was named president of capitol records inc. a unit of this entertainment concern + mr. <unk> succeeds david <unk> who resigned last month + legal <unk> in america have a way of assuming a <unk> significance far exceeding what is involved in the particular case + they speak volumes about the state of our society at a given moment + it has always been so + in the 1920s a young <unk> john t. <unk> <unk> to be a guinea <unk> in a test case sponsored by the american civil <unk> union to challenge a ban on the teaching of evolution imposed by the tennessee legislature + the result was a <unk> trial <unk> <unk> cultural conflicts in american life between the smart set whose spokesman was <unk> <unk> and the <unk> <unk> whom <unk> <unk> as <unk> <unk> + few now recall the actual outcome <unk> was convicted and fined $ N and his conviction was reversed on appeal because the fine was excessive under tennessee law + so it was with the <unk> case a generation later when <unk> <unk> became a <unk> rod for the <unk> of the cold war and <unk> attitudes toward the new deal he had served + his trials aroused public <unk> out of all proportion to the rather <unk> secrets he allegedly had passed to soviet intelligence + and so it seems to be with the case of elizabeth morgan the washington d.c. plastic surgeon jailed in a child custody case for refusing to reveal the <unk> of her daughter + dr. morgan has just emerged from the d.c. jail after more than two years ' <unk> for <unk> of court a <unk> to her many supporters + to the rest of us the case is a <unk> + it is what lawyers call fact intensive + it presents no great issue of legal principle no <unk> question of family law or the law of <unk> + instead it turns on the disputed and <unk> facts of who did what to whom + it is difficult if not impossible for anyone who has not <unk> over the thousands of pages of court <unk> and <unk> to have a <unk> opinion on the underlying merits of the controversy + certainly i do not + so we must look elsewhere for an explanation of the unusual power this case has <unk> over the minds of many not just in washington but elsewhere in the country and even the world + i suggest that three themes have come together in the strange case of dr. morgan + the first is that it represents an intense battle in what james <unk> used to <unk> as the war between the <unk> + but although <unk> did so gently and <unk> many of dr. morgan 's supporters have taken <unk> 's <unk> title the male animal quite literally + the <unk> of the <unk> aroused by the case <unk> to its <unk> importance in the war that <unk> accepted as an <unk> part of the human condition + a second theme is the <unk> of social class and race in the public reaction to the morgan case + dr. morgan is a highly educated white professional who attended some of the best schools + as members of the black <unk> in congress asked during the debate on the legislation that freed dr. morgan does anyone seriously believe that if she were an <unk> black <unk> woman congress would have rushed to pass a private relief bill <unk> her + or that the president would have <unk> to sign the bill out of <unk> for her plight + to ask those questions is to answer them + finally the case of dr. morgan gave congress an opportunity to act with <unk> <unk> and to engage in one of its favorite <unk> <unk> the district of columbia government + the local government is <unk> in the eyes of many residents for a variety of reasons and congressmen read the same newspapers and watch the same tv <unk> as other people in the area do + <unk> the d.c. government is <unk> for members of congress who do not have to answer to their own constituents for it + congress is <unk> from acting on such great issues of the day as the federal budget deficit + yet a bill tailored to the interests of a single individual passed congress with almost <unk> speed before the judicial process had run its course and indeed while the morgan case was awaiting a ruling by the appellate court + the morgan case thus tells us much more about the current state of sex class race and politics in our society than it does about the facts of dr. morgan 's particular situation + it may stand as a <unk> for how wide and deep the divisions in that society continue to be however we try to deny their existence + mr. <unk> is a lawyer in washington <unk> + the national aeronautics and space administration said it awarded general dynamics corp. a $ N million contract to launch the combined release and radiation effects satellite in june N + <unk> is a joint <unk> force satellite to study the effects of space radiation on <unk> components + nasa said general dynamics will launch <unk> using an atlas N rocket + ronald j. taylor N was named chairman of this insurance firm 's reinsurance brokerage group and its major unit <unk> <unk> & son inc + robert g. <unk> N retired as chairman but will remain a consultant + stephen a. crane N senior vice president and chief financial and planning officer of the parent was named president and chief executive of the brokerage group and the unit succeeding mr. taylor + the appointments are effective nov. N + <unk> said it will announce a successor to mr. crane at a later date + an investment company said it offered to acquire arby 's inc. the fast-food operator for $ N million + the proposal however was immediately rebuffed by arby 's parent <unk> corp + arby 's is n't for sale said <unk> <unk> senior vice president at <unk> + the new suitor <unk> equity ventures inc. of <unk> n.y. characterized its proposal as the first truly independent offer which does not pit one interest group against another within the arby 's franchisee community + in september <unk> a miami beach fla. holding company controlled by <unk> victor posner rejected an offer from a group of arby 's franchisees to acquire arby 's for $ N million + since then a second group of franchisees has <unk> together to try to <unk> control of the unit from mr. posner + arby 's is the marketing <unk> and service company for the N restaurants in the chain + <unk> 's principals richard and steven <unk> said they led the acquisition group that acquired the nathan 's famous inc. restaurant chain and subsequently served as the top officers of the company + richard <unk> said <unk> 's acquisition of arby 's would allow <unk> franchisers and <unk> operators with no conflicts of interest to stabilize franchisee relations and properly <unk> the company 's <unk> toward growth + general motors corp. 's big defense and automotive electronics unit gm hughes electronics said net income fell N N in the third quarter reflecting declining military spending and <unk> gm vehicle production + meanwhile net at gm 's finance arm general motors acceptance corp. fell N N + by contrast electronic data systems corp. gm 's data processing subsidiary boosted net N N + gm closed down $ N at $ N in new york stock exchange trading yesterday + earnings for gm common stock reflecting the performance of gm 's core automotive operations will be disclosed this morning + gm class <unk> which represents a dividend interest in hughes earnings closed at $ N up N cents in big board composite trading + gm class e which represents a dividend interest in <unk> profit fell N cents to $ N on the big board + the earnings drop at gm hughes electronics is a sign of tough times at both the defense operations of hughes aircraft co. and gm 's north american automotive operations which are a primary customer for the <unk> electronics corp. side of the gm hughes unit + profit at the unit fell to $ N million or N cents a share from $ N million or N cents a share largely because of a $ N million one-time charge associated with hughes 's previously announced plan to reduce employment by at least N people by year end + even excluding the charge however net fell N N + in addition gm 's north american vehicle production fell N N from a year ago which hurt <unk> electronic 's earnings a company spokesman said + that decline was reflected in revenue for the gm hughes unit which edged down to $ N billion from $ N billion + in the nine months gm hughes net fell N N to $ N million or $ N a share from $ N million or $ N a share + revenue rose N N to $ N billion from $ N billion + at gmac net dropped N N to $ N million from $ N million + the finance unit attributed the decline to higher borrowing costs compared with a year earlier + gmac said its automotive financing and leasing business rose N N in the u.s. largely because of dealer and customer incentives used to boost sales + gmac profits are combined with earnings from the rest of gm 's operations and attributed to the company 's traditional common stock + in the first nine months gmac 's earnings fell N N to $ N million from $ N million + at <unk> third-quarter profit jumped N N to a record $ N million or N cents a share from $ N million or N cents a share + revenue rose N N to $ N billion from $ N billion + in the nine months <unk> earned $ N million or $ N a share up N N from $ N million or $ N a share + revenue rose N N to $ N billion from $ N billion + revenue from <unk> accounts was N N of <unk> 's total business in the latest nine months compared with N N a year earlier + the company has said it wants to boost <unk> revenue to at least N N of its total business by the end of N + william c. <unk> jr. N years old was elected a director of this <unk> <unk> concern expanding the board to N members + alvin w. <unk> director of oak <unk> national laboratory oak <unk> tenn. was elected a director of this <unk> concern + mr. <unk> N years old succeeds william <unk> who died in august + in the bidding war for public service co. of new hampshire united illuminating co. raised its proposed offer to one it valued at $ N billion from $ N billion apparently <unk> all other bidders + the bids remain subject to evaluation by the federal bankruptcy court <unk> ps of new hampshire 's reorganization + they are also indirectly subject to approval by the state of new hampshire where residents fear soaring rates to pay for the cost of reorganization + each of the four parties bidding for ps of new hampshire proposes a complex financial package to satisfy creditors and shareholders and also proposes a formula to limit rate increases to satisfy the state + the new round of bidding would seem to complicate the decision making for judge james <unk> the bankruptcy judge overseeing the case because the company 's stockholders unsecured creditors and regulators each are currently backing different plans + in addition some of the proposals are so close that <unk> issues such as timing may play a more important role + the unsecured creditors agreed in principle to support new haven <unk> united illuminating 's new bid + they previously had backed an internal reorganization plan proposed by ps of new hampshire + all of the bidders <unk> full payment including interest to secured creditors + united illuminating 's plan however offers more for unsecured creditors + <unk> <unk> counsel to the official creditors committee said that under the united illuminating plan unsecured creditors would be paid in full credits and interest of about $ N million accrued before ps of new hampshire 's jan. N filing for bankruptcy court protection + in addition they would receive some $ N million in payments for interest since then + mr. <unk> said that by next july they would have accrued unpaid interest equal to $ N million + other plans generally would n't pay unsecured creditors ' interest accrued since the filing + under united illuminating 's plan a new holding company would be formed to own the two companies + it would be <unk> by united illuminating holders and <unk> by current holders of ps of new hampshire preferred and common stock + ps of new hampshire preferred holders also would get certain debentures and preferred stock + united illuminating said the preferred holders total package would equal about N N of their claims + common shareholders would end up owning about N N of the combined company + as previously reported northeast utilities hartford conn. monday filed a bid it valued at $ N billion + that offer was endorsed by the shareholders committee + the other bidders new england electric system <unk> mass. and ps of new hampshire did n't change the value of their bids although ps of new hampshire changed its rate proposal + new england electric values its offer at $ N billion and ps of new hampshire values its reorganization plan at $ N billion + the bankruptcy judge has ruled that federal bankruptcy laws could be used to <unk> state regulation + however creditors and bidders alike concede that the state plays a major role because it could significantly delay final settlement of a plan it did n't like + the state has endorsed the new england electric plan which promises to limit rate increases to N N annually for seven years + northeast utilities ' plan proposes N N annual increases + ps of new hampshire amended its plan to call for two years of N N rate increases followed by five years of N N increases + fuel cost adjustments could change the effective rate increases however + previously it had proposed seven years of N N increases + united illuminating also amended its rate plan + the new offer assumes just five years of N N rate increases to be followed by <unk> increases under the usual hearing procedure + previously united illuminating had also called for seven years of N N increases + the bids and rate proposals generally assume the seabrook nuclear power plant which is completed will go into operation + most of the plans have reduced bids in case the plant fails to get a license from the nuclear regulatory commission + in new york stock exchange trading ps of new hampshire 's N N debenture due N closed yesterday at $ N up $ N + the utility 's stock closed at $ N a share up N cents in composite trading on the big board + in a separate development ps of new hampshire gave N managers severance agreements that would pay one to three years ' salary if their jobs were changed or they were dismissed in the wake of a takeover + it said the maximum cost of the plan would be $ N million + c. <unk> tucker will become president and chief executive officer of bell atlantic international inc. a unit of this telecommunications concern effective jan. N + mr. tucker N years old is currently vice president and chief operating officer of bell atlantic 's <unk> telephone unit + mr. tucker will succeed <unk> j. <unk> N who will hold the newly created position of chairman of the international unit until his retirement april N + richard breeden had n't noticed that his new desk had just four telephone lines and one phone + it was after all only his second full day as chairman of the securities and exchange commission + but the lack of lines became painfully apparent + as the stock market <unk> into a 190-point free fall on oct. N mr. breeden found himself <unk> around the sixth floor of the sec from his desk where the new york stock exchange was on an open line to his assistant 's office where the commodity futures trading commission was connected to a third room where a computer monitored market moves + with other anxious calls pouring in he recalls i 'd either have to <unk> the new york stock exchange or go out to the secretary 's desk + it wo n't happen again + now there are more lines connected to the chairman 's office and the <unk> computer has been moved next to his desk + it 's all part of a new command center + the changes in the office <unk> illustrate mr. breeden 's stance as the nation 's top securities regulator + like his predecessor david <unk> he was faced with a crisis in the stock markets soon after coming into office + but unlike mr. <unk> who during the N crash damaged himself by saying rather <unk> that the markets might be closed mr. breeden is turning the market drop to his own advantage using it to further his agenda for the sec + in an interview and in congressional testimony he repeatedly points to the recent 190-point plunge in the dow jones industrial average the second-largest ever as evidence of the need for congress to give the sec the ability to better monitor leveraged buy-out loan activity by brokerage firms and to track big trades in the market + a veteran of another financial crisis the savings-and-loan bailout mr. breeden wants to have the sec regulate securities issued by banks and s&ls + more broadly he wants to modernize regulation by eliminating barriers between commercial and investment banking and by helping u.s. financial firms compete in the global market + he believes the tax code encourages the use of debt instead of stock and may fuel leveraged buy-outs an area the sec does n't regulate directly but one where it <unk> influence both on wall street and in congress + also unlike mr. <unk> mr. breeden appears to be in a position to get somewhere with his agenda + as a former white house aide who worked closely with congress he is <unk> in the ways of washington + what 's more the coming months likely will offer him the opportunity to obtain his own majority on the <unk> commission enabling him to avoid the <unk> that frustrated his predecessor + but mr. breeden a <unk> securities lawyer has <unk> some of the <unk> issues facing the financial markets + for instance he has n't stated a clear position on high-risk high-yield junk bonds an area of growing concern as turmoil in the junk market <unk> over into stocks + he may be waiting to see the results of several pending sec studies of junk market liquidity and disclosure rules + he also has kept a close wrap on the names of people under consideration for the crucial post of enforcement director at the commission a job vacant since the summer + mr. breeden 's selection will be <unk> as an important signal about the strength of his commitment to continuing the sec 's <unk> pursuit of insider trading and market manipulation on wall street + congress seems likely to let the new chairman have his way for a while + members of the senate banking committee know mr. breeden from working on the <unk> bill and the relationship generally remains warm + indeed during mr. breeden 's confirmation hearing last month senators asked him to introduce his children three separate times more often than they asked about his <unk> for the job + these days mr. breeden is winning <unk> in washington and on wall street for his <unk> role in monitoring the friday-the-13th market plunge and the following monday 's <unk> morning session + as a regulator charged with restoring investor confidence mr. breeden avoided making <unk> comments and worked to gather information critical to wall street and to other government agencies + not everyone has jumped on the breeden <unk> however + some in washington contend that it 's too soon to tell whether mr. breeden will help or <unk> the sec + i do n't think this was a real test says one congressional aide + it was a fairly <unk> weekend but my sense is if you had n't had richard breeden there it would n't have made much of a difference + for some at the sec an agency that <unk> its independence mr. breeden may be too much of a washington insider + they note that he has <unk> his office with five photos of george bush one of them featuring the first dog <unk> + they worry that mr. breeden also will roll over when told to do so by the white house + but mr. breeden already has shown an eagerness to run the sec his way + during the monday market rebound a new york exchange spokesman told cable news network viewers that the industrial average had turned down N points + stunned mr. breeden turned to his <unk> computer which by then was next to his desk + it showed the <unk> up N points + sec staffers soon determined that a widely watched stock-market service quotron had <unk> the industrial average + mr. breeden instructed sec staffers to inform the network that it was airing the wrong number + it was the plunge that did n't happen he says + mr. breeden also is trying to use a far more catastrophic event the california earthquake to move another rule change past congress + that disaster closed the pacific stock exchange 's stock <unk> operation forcing those options to be switched to other exchanges temporarily + though <unk> to most investors the question of whether to list options on more than one exchange has aroused much interest in congress mainly because regional exchanges fear the change could bankrupt them + congressmen raised the issue yesterday at a hearing + mr. breeden not missing a chance to press his agenda cited the earthquake + that event he contended simply shows the <unk> of having listings on only one exchange + in a corner of the <unk> new nippon convention center sits mazda motor corp. 's <unk> display + the highlight a <unk> control system + with the touch of a <unk> drivers can choose from <unk> <unk> mint or <unk> <unk> all <unk> in through the car 's <unk> system + the soft <unk> <unk> will improve ride comfort the display <unk> and a proud employee says mazda hopes to move the system out of the lab and into its cars in a year or two + welcome to the <unk> tokyo motor show + here you can find mitsubishi motors corp. <unk> a live fish <unk> a truck <unk> to an <unk> on wheels and nissan motor co. with its <unk> <unk> whose doors <unk> upon recognizing the owner 's <unk> + <unk> motor co. 's <unk> sport vehicle features a <unk> rear <unk> and invites drivers to go back to the nature + but this <unk> event the world 's largest display of cars and trucks has its serious side including the first major <unk> of future engines and <unk> systems + it 's also the prime <unk> for a country whose world dominance in the industry is increasingly acknowledged and <unk> lies the draw + even the biggest auto shows in the u.s. are largely regional affairs but the tokyo show is international + virtually every automotive analyst in new york showed up + <unk> flights were booked solid this week as motor city executives including ford motor co. chairman donald e. <unk> and chrysler corp. vice chairman gerald <unk> <unk> to see the future + even the soviet union came for the first time in N years to show off its <unk> <unk> sedan and its <unk> <unk> <unk> model + here 's a <unk> look at what the japanese hosts <unk> and what the foreign visitors saw + new technology + the hottest displays were items that <unk> passengers from <unk> <unk> and other <unk> of the road + these active suspension systems electronically sense road conditions and adjust a car 's ride + existing suspension systems try to absorb <unk> but active suspension provides power to counter the <unk> + nissan in a <unk> <unk> modestly compares its <unk> active suspension to a <unk> and <unk> the various parts to the animal 's heart brain nerves and blood vessels + toyota motor corp. <unk> touted its system in a car that <unk> in half to reveal the suspension 's inner workings + nissan says it will introduce its first system next month on the infiniti <unk> luxury sedan and toyota 's <unk> <unk> will go on sale with the suspension device next spring + but drivers in the u.s. must wait the japanese for now are keeping active suspension for domestic use only + and detroit 's big three auto makers say their systems are still under development + in the engine department several companies displayed experimental models that within a decade could provide power equal to today 's engines and yet take up only half the space allowing for shorter <unk> + in the so-called <unk> engines which are expected to get sharply higher gas <unk> each <unk> goes up and down only once to provide power + by contrast the <unk> in conventional <unk> engines must move up and down twice in each power cycle + the <unk> engine displays by toyota and fuji heavy industries the maker of <unk> cars drew plenty of interest from u.s. auto executives who are rushing to develop <unk> engines + honda motor co. shows a more conventional <unk> engine in the new accord <unk> model which made its debut just this month in japan only + honda says the <unk> engine provides a compromise between the <unk> of a <unk> and the power of a <unk> + it is rumored to be bound for a new model in the luxury <unk> line in the u.s. but honda officials would n't comment + odd cars funny names + there 's plenty of <unk> here but it is n't always clear whether it 's <unk> + the show 's symbol is a woman riding on a <unk> not your usual <unk> for speed and <unk> + but the sponsors have an explanation through the character associated with a <unk> they say important values such as harmony with nature and aspirations for the future are sought + japanese auto makers are known for coming up with funny names but this year the practice seems to have reached a new high or low + honda has a tiny <unk> called the <unk> and a slightly larger <unk> the <unk> + mitsubishi has a <unk> delivery truck called the <unk> + mazda has the <unk> truck and under its <unk> <unk> a <unk> called the <unk> + its <unk> carol <unk> is designed with softness <unk> and <unk> + but the court <unk> appears to be japan 's smallest car maker <unk> motor co + one of its <unk> <unk> is the <unk> <unk> which seats just one person in front and could hold a small child and bag of <unk> in the rear + <unk> also has the fellow N the <unk> <unk> and the <unk> <unk> + the jokes are n't just on the japanese though + <unk> <unk> des <unk> renault the french auto maker has a concept car called the <unk> + the name is supposed to <unk> <unk> <unk> but in japanese it means <unk> + foreign presence + foreign auto makers are taking the tokyo motor show more seriously than ever + ab <unk> invites <unk> to play the role of the test <unk> by <unk> in a car that <unk> a crash to show just how its <unk> <unk> works + hyundai motor co. of south korea has its <unk> exhibit in tokyo + general motors corp. is <unk> its first independent display in N years and it includes a <unk> buick station <unk> with <unk> side panels + ford and chrysler also have <unk> although theirs are <unk> in a separate room with the <unk> automotive parts section + we 've got to get out of the detroit mentality and be part of the world mentality declares charles m. jordan gm 's vice president for design in explaining his <unk> to the tokyo show + even so traditional american <unk> is n't <unk> endangered + ford officials for example <unk> about their <unk> tokyo grand <unk> racing victory + true ford was declared the winner sunday but only after the honda driver who crossed the finish line first was <unk> because it hit another car and <unk> <unk> out of <unk> + mr. jordan of gm meanwhile still <unk> japanese <unk> + it 's hard for the japanese he says to get a feeling in a car to get a passion in a car to get <unk> in a car + regarding your sept. N politics & policy column on the party differences over cutting capital gains or expanding iras why not compromise now and save the public from the coming <unk> congressional political rhetoric that seems to go hand in hand with the process + the republicans maintain that a N N capital-gains exclusion will raise revenue in the short term and spur economic investment while the democrats maintain that an increase in the top income-tax rate and expanded iras will raise revenue and spur savings + this is a classic example of the old saying the whole is greater than the sum of its parts + it 's ridiculous for a family with taxable income of $ N to pay the same N N <unk> tax rate as a family with taxable income of $ N + the N N <unk> should apply to all income over the applicable level not just the N N rate adjustment amount + it 's equally ridiculous not to provide a capital investment or <unk> tax incentive + jeffrey t. <unk> + pwa corp. said it plans to sell by spring N all N passenger planes it acquired earlier this year in its N million canadian dollar us$ N million purchase of <unk> inc + pwa which recently merged <unk> 's operations with those of <unk> canadian airlines international ltd. canada 's <unk> airline said the proposed sale is part of a revised five-year plan aimed at streamlining its fleet and shedding debt + pwa would n't estimate the value of <unk> 's aircraft which include N airbus <unk> and three boeing <unk> + but james ireland a miami-based technical analyst with <unk> inc. an aircraft evaluation firm estimated the total <unk> value of the N planes at about $ N million or more + mr. ireland said N <unk> aircraft that pwa also said it plans to sell beginning in N have a current <unk> value of about $ N million each or a total $ N million raising <unk> potential proceeds from the aircraft sale to about $ N billion + mr. ireland said current demand for used aircraft is strong partly because surging orders for new aircraft have <unk> waiting lists + he predicted that pwa would have little difficulty attracting prospective buyers + under its revised fleet plan pwa said it will also increase its existing fleet of eight boeing <unk> aircraft to N by N and add four more boeing <unk> by N to the two units that it previously planned to add by next year + pwa said two of the boeing <unk> aircraft scheduled for delivery in N would be leased out for two to five years + pwa did n't disclose the expected net cost of the fleet overhaul but a toronto-based analyst estimated it at about $ N million us excluding replacement costs for the N <unk> aircraft that pwa plans to sell and purchase costs for as many as N airbus N aircraft that pwa previously ordered + i do n't see this as a debt reduction exercise + it 's focused on streamlining pwa 's fleet in a bid to cut training and aircraft <unk> costs the analyst said + pwa 's long-term debt and capital lease obligations rose to c$ N billion at the end of the second quarter nearly double the year-earlier figure reflecting debt absorbed under the <unk> purchase + pwa said it also expects to announce by tuesday whether it will take delivery of all N airbus N aircraft it previously ordered + the first five leased units were to be delivered in N + this british banking and financial-services group 's investment-banking arm barclays de zoete wedd group announced the following appointments at its <unk> subsidiary barclays de zoete wedd ltd + john <unk> N years old was named a deputy chairman + mr. <unk> is currently a director at barclays de zoete wedd ltd + graham <unk> N was named to the new post of chief executive officer of the <unk> <unk> division + <unk> <unk> N was named to the new post of deputy head of the <unk> division and a managing director + mr. <unk> and mr. <unk> join <unk> 's from kleinwort benson ltd. where they served as directors + the recent bids for united and american airlines have led congress to move with <unk> speed to protect incumbent airline <unk> + the house is scheduled to vote today on an <unk> bill that would block for up to N days any bid for N N or more of a u.s. airline even a straight cash purchase + transportation secretary sam skinner who earlier fueled the anti-takeover fires with his <unk> attacks on foreign investment in u.s. carriers now says the bill would further <unk> the jittery capital markets + texas rep. steve bartlett who has N american airlines workers in his district says the bill is good politics but bad law + it is ironic that at a time when america 's partial airline deregulation is being <unk> by governments from new zealand to ethiopia so many in congress favor an <unk> program for airlines that would be more appropriate for the soviet airline aeroflot + federal reserve chairman alan greenspan told congress that the fed can wipe out inflation without causing a recession but he said doing so will <unk> some short-term pain and will require reducing the federal deficit sharply + mr. greenspan said he and other fed governors <unk> a bill by rep. stephen neal d. n.c. that would require the fed to pursue policies aimed at eliminating inflation within five years + such a deadline is <unk> but it would have costs mr. greenspan told rep. neal 's monetary policy subcommittee + the fed chief opposed a bill introduced by <unk> lee hamilton d. ind. and <unk> <unk> d. <unk> that among other things would require the fed to disclose all monetary policy moves immediately and increase outside scrutiny of the fed + in responding to questions mr. greenspan played down reports of tension between the fed and the treasury over exchange-rate policy + what seem to be interpreted as great conflicts are relatively minor issues of tactics he said + he did n't elaborate + but the fed is n't enthusiastic about treasury efforts to bring down the value of the dollar through intervention in foreign-exchange markets and the treasury is frustrated at the fed 's reluctance to cut interest rates to pull down the dollar 's value + mr. greenspan said the inflation rate currently about N N N could be brought down to levels which are close to zero without putting the economy into a recession but i do suspect that there might be some modest loss of economic output + in other words economic growth would be lower and unemployment would be higher for a few years + but mr. greenspan who has repeatedly said the fed 's goal is to reduce inflation added that whatever losses are incurred in the pursuing of price stability would surely be more than made up in increased output thereafter + he warned that fed efforts to <unk> inflation would fail and could produce a major financial crunch unless they are accompanied by a significant reduction in the federal deficit which causes the government to borrow heavily + rep. neal 's bill originally called on the fed to reduce the inflation rate by one percentage point a year for five years and to maintain a zero inflation rate thereafter + he altered the <unk> to win mr. greenspan 's endorsement + even so his bill is given little chance of passage + <unk> hamilton and <unk> also have altered their bill dropping a proposal to add the treasury secretary to the <unk> fed committee that makes monetary policy + instead the bill simply calls for <unk> meetings between the committee and top administration officials + even that met with mr. greenspan 's <unk> because it might subject the fed to a more intensely political perspective and could risk <unk> monetary policy away from long-term strategic goals + while each of the <unk> proposals represents only a small step together they would erode the fed 's independence mr. greenspan said + mr. greenspan also said that although he favors cutting capital-gains taxes as sound economic policy he would oppose such a move if it would undo the political compromise <unk> in the tax reform act of N and result in higher marginal income tax rates + sears roebuck & co. signed a contract with bob vila the former host of the popular public television program this old house to star in a half-hour home improvement show sponsored by the giant retailer + the <unk> show slated to start airing by june N marks sears 's entry into the <unk> market of home repair television programs and could bolster sales of its home improvement products + in recent months sales of home improvement items have sagged along with sales of other big ticket durable goods + the show also signals mr. vila 's return as a television celebrity + earlier this year public television station <unk> in boston fired mr. vila after a sponsor <unk> some of his numerous commercial <unk> + with mr. vila as host this old house became one of the public broadcasting service 's top N programs airing weekly on about N of the network 's stations and seen by an average of N million viewers + but home <unk> inc. an atlanta-based home center chain <unk> when mr. vila started doing commercial <unk> for <unk> home centers a new jersey building supply company that competes with home <unk> in some markets + i 'm <unk> about the change said mr. vila whose new syndicated program is called home again with bob vila + in an interview mr. vila criticized his old show which is continuing with a new host + public tv is in fantasy land he said + last season we did a story that involved spending $ N in converting a <unk> house into a bed and breakfast + in the new show he said we 're going to spend $ N building a start-up house for a young couple + while sears would n't comment on the <unk> over mr. vila 's commercial <unk> it appears to be building a <unk> around mr. vila 's <unk> + his contract makes him exclusive spokesman for sears 's home improvement marketing campaigns + ogilvy & mather in chicago a unit of wpp group plc will handle the advertising account and <unk> + the only other endorsement permitted by the contract involves a series of <unk> home improvement and repair books + his other agreements to promote products have expired + little matter for mr. vila who complains that public tv never paid me more than $ N a year + he said his compensation under the sears contract is a <unk> dollar deal + eugene a. miller N years old was elected a director of this electric utility company filling a vacancy + he is president and chief executive officer of <unk> inc. in detroit + the white house has decided to push for changes in pesticide law that are designed to speed the removal of harmful chemicals from the nation 's food supply + the proposed changes which are scheduled to be announced today would apply to pesticides and other <unk> found on fresh and processed foods according to federal officials + environmental groups have been calling for faster action on dangerous pesticides and may welcome part of the proposal + but they are already <unk> to among other things a plan to give more weight to <unk> considerations in evaluating pesticides + it 's a tremendous disappointment said <unk> <unk> an attorney with the natural resources defense council + allowing the epa to <unk> continued use of a chemical whenever the benefits outweigh the risks is absolutely <unk> to the environmental community + the bush administration plans to announce a series of principles and to work with congressional leaders in writing specific legislative proposals that <unk> them + the principles would give the environmental protection agency increased authority and flexibility in <unk> pesticides with the aim of enabling the agency to move more quickly + there already are proposals pending in congress to overhaul pesticide law + moves to accelerate the removal of dangerous pesticides gained new impetus during this year 's <unk> scare when the epa was <unk> criticized for failing to <unk> the possible <unk> a growth regulator used to make apples <unk> and <unk> + the agency has since acted to remove <unk> from the nation 's grocery shelves by may N N and the apple industry has said that growers already have stopped using the chemical + in addition the principles attempt to eliminate the so-called <unk> <unk> + under the <unk> clause which applies to processed food a chemical is banned if it causes cancer in laboratory animals + under other laws applying to pesticide use however that same chemical could be allowed to be used on fresh food if it fell within the epa 's <unk> level + among other changes the white house wants to + give the epa more flexibility to declare a pesticide an imminent hazard and pull it from the marketplace + speed up the process for removing a pesticide that is n't an imminent hazard + bar states from setting more <unk> <unk> levels for a pesticide once the federal government has set a standard + give the epa added discretion to set negligible risk levels for pesticide <unk> in processed food + chemicals that exceed these risk levels would be barred but those that fall below these levels would be allowed + allow the epa to permit the continued use of pesticides that exceed its negligible risk standard if the benefits of doing so outweigh the cost + financial markets took a <unk> break from their recent wild gyrations with stock prices falling modestly bond prices posting tiny gains and the dollar almost unchanged + the dow jones industrial average lost N points to N in moderate trading + long-term treasury bonds rose slightly despite the <unk> on the market of $ N billion in 30-year bonds offered by the resolution funding corp. as part of the government 's bailout of the savings and loan industry + the dollar was barely changed against the west german mark and up marginally against the japanese yen + yesterday 's sluggish action was in marked contrast to the <unk> and plunging of stock prices tuesday after the proposed buy-out of ual corp. once again collapsed + traders said the stock market 's <unk> moves have prompted many investors to head for the sidelines until it <unk> some <unk> of stability + although bond prices were n't as volatile on tuesday trading as stock prices traders nevertheless said action also was much slower yesterday in the treasury market + bond investors paid close attention to comments by federal reserve chairman alan greenspan who was <unk> before a congressional hearing but were n't able to extract many clues about the future course of the fed 's monetary policy + many analysts are expecting the fed to lower interest rates at least once more before the end of the year + investors now are awaiting today 's release of the preliminary estimate of third-quarter gross national product + economists predict the report will show economic growth of about N N in the third quarter which would have little effect on financial markets + but an unexpected deviation either way could <unk> bond and currency markets + in major market activity + stock prices slipped lower in moderate trading + volume on the new york stock exchange totaled N million shares + but advancing issues on the big board were ahead of decliners N to N + bond prices inched higher + the treasury 's benchmark 30-year issue rose less than an eighth of a point or less than $ N for each $ N of face amount + the yield on the issue stood at N N + the dollar was virtually unchanged + in late new york trading the u.s. currency was quoted at N marks and N yen compared with N marks and N yen tuesday + a few years ago i was on a panel of journalists that discussed the image of <unk> athletics for an audience of campus information directors and others + we <unk> quickly <unk> that not only was the bad rep of big-time college sports <unk> earned but also that it could be corrected + competition could be maintained and stadiums probably would remain full if schedules were reduced and the games returned to the students we said + comments from the audience reflected widespread if <unk> agreement with those conclusions + as the session broke up i was approached by a man who identified himself as the <unk> director of a big ten university + i 'd love to see sports cut back and so would a lot of my counterparts at other schools but everybody 's afraid to make the first move he <unk> + it 's like the u.s. and the russians nobody wants to <unk> first + and so our institutions of higher learning <unk> from scandal to scandal on <unk> and basketball court while the <unk> mount + three new books make the point that one large price of the <unk> <unk> show can be the integrity of the schools that stage it + they are a payroll to meet a story of greed corruption and football at <unk> macmillan N pages $ N by david <unk> big red confidential inside nebraska football contemporary N pages $ N by <unk> <unk> and never too young to die the death of <unk> bias <unk> N pages $ N by lewis <unk> + the pick of the group is payroll it should be required reading for every college president + it <unk> how over a period of a dozen years southern <unk> university bought its way to football respectability in the southwest conference only to find itself trapped and <unk> by the <unk> system it created + the school was the first in N to receive the ncaa 's death penalty two years without football for repeated rules violations + given current <unk> about the university of florida it may not be the last + the man who brought the bribe to the dallas school was ron <unk> a flashy sort who came in N to rescue a <unk> program mr. <unk> writes + mr. <unk> 's personal style was illustrated by his <unk> a $ N bill to a high-school <unk> board on which other coaches tacked their cards + one <unk> working with mr. <unk> was so generous with $ N and $ N bills that prospects sang here comes santa <unk> when he approached + paying players at <unk> was no casual operation + it involved the athletics director two different football <unk> staffs and school <unk> and governors just about everybody it seemed but donald <unk> the university 's president + there 's a <unk> passage in which mr. <unk> having finally learned of the practice <unk> his <unk> to bill <unk> then a university governor and now the governor of texas and oil man edwin cox chairman of the board of <unk> + you stay out of it author <unk> quotes mr. <unk> as saying + go run the university + which was about what mr. <unk> did and quietly until he resigned a few years later <unk> ill health when the stuff hit the fan + mr. <unk> drew on <unk> news media coverage of the <unk> scandal and on a university internal investigation + mr. <unk> had to do most of his own <unk> on university of nebraska football which is to date high and dry as far as the ncaa is concerned + unfortunately he gets low grades as an <unk> reporter relying heavily on what chicago 's late mayor richard j. <unk> called <unk> + discrepancies go <unk> in confidential one <unk> claims he received $ N to $ N for his season football tickets while others said theirs brought only a few hundred dollars and when mr. <unk> ca n't <unk> down something like who really owned a car driven by <unk> <unk> doug <unk> he simply <unk> his notes + there are <unk> <unk> to supposed romantic <unk> between <unk> players and a <unk> female university employee + a serious charge that star <unk> irving <unk> threw the N orange bowl game by intentionally dropping a pass in the end zone is included even though the nebraska assistant coach quoted denied making it + still the book produces more smoke than a <unk> <unk> along with a few <unk> especially concerning the use of <unk> + dean <unk> a <unk> <unk> former <unk> <unk> that he used <unk> and says other <unk> did too + it 's a mystery how this could have escaped the notice of nebraska coaches + probably it did n't + never too young is a different sort of work focusing on the N death from cocaine <unk> of bias a university of maryland basketball star <unk> for sure pro <unk> + while the university was no more to blame for that than for the similar fate of any other student it must bear responsibility for its conduct in the aftermath + bias 's coach <unk> <unk> ordered the room in which bias died to be <unk> before the police could arrive the order was n't carried out and the school 's athletics director issued false information about the academic standing of bias and other players + those of course were the responses of people with something to hide + one <unk> how other college athletic officials would <unk> under the same circumstances + tomorrow 's on sports column will look at another aspect of the college sports mess + <unk> of north america inc. a unit of daimler-benz ag paid massachusetts $ N million in taxes bringing to an end a <unk> corporate tax chase + officials at the department of revenue had dogged the foreign car maker for taxes owed on business transactions and were proceeding to settle the dispute in court + but the check arrived in the mail said stephen kidder massachusetts commissioner of revenue + <unk> which had said it did n't owe taxes to massachusetts partly because it sells its cars at a <unk> in baltimore and not in massachusetts did n't explain its change of heart + last month <unk> executives approached state revenue officials complaining about bad press the commissioner said + the dispute was the subject of a wall street journal article in august + the amount covers taxes interest and penalties owed from N when the state began collecting corporate taxes to N + <unk> also agreed to pay taxes owed for the years N through N mr. kidder added + under massachusetts tax laws corporations must pay N N of estimated profits resulting from business transactions in the state if the company <unk> a variety of <unk> activities including <unk> customer complaints and relations with independent dealerships + national convenience stores inc. trying to shake the doldrums in the <unk> business said it will <unk> the merchandise in all of its stores in the next N months to cater better to the neighborhoods around its stores + as part of the plan the <unk> company 's N stop <unk> go stores will be <unk> to target black hispanic upscale or core middle-class customers + stores in <unk> neighborhoods for instance will carry high-priced wines publications such as <unk> fair <unk> pasta <unk> oat bran <unk> and weight watchers and <unk> products + stores in hispanic areas will stock an <unk> of <unk> magazines mexican cooking items and <unk> + stores in the company 's core middle-class market will get more frozen and <unk> foods and a greater selection of bottled water + <unk> van horn national convenience president and chief executive officer said the move reflects the company 's <unk> that the industry 's poor performance stems from its failure to give customers what they want rather than from increasing competition from gasoline stations and 24-hour grocery stores + convenience store merchandise has not kept pace with current trends in consumer preferences he said in a speech at the company 's annual shareholders meeting + analysts and competitors said the move reflects a growing need by the stores to expand their customer base beyond the traditional blue-collar worker who <unk> into a convenience store for a <unk> cigarettes soda or beer + there are an increasing number of people out there who are <unk> said chris <unk> retail analyst with alex brown & sons of baltimore + those are primarily white-collar workers a customer segment that has historically proved <unk> for convenience stores + national convenience 's move is likely to be <unk> by other chains though analysts note that <unk> corp. owner of <unk> stores and circle k corp. are too <unk> to roll out such an extensive effort + still <unk> said that its franchisees have been targeting their merchandise to their customers for years and that the company has begun to follow suit + for instance <unk> has expanded its bottled water selection in some stores and added fresh <unk> in some outlets + several months ago it also added black health and beauty aids displays to many stores a spokeswoman said + we certainly see an increasing trend toward that she added + national convenience said it has tested its new merchandise mix in N stores with favorable results + analysts said the company 's effort will be helped by its decision last year to put <unk> <unk> in N stores allowing national convenience to quickly track items that are selling and those that are n't + to promote its new strategy national convenience said it plans to spend about $ N million on advertising for the year ending june N up from about $ N million in fiscal N + labor secretary elizabeth dole named a mediator to help resolve the lengthy labor dispute between the united mine workers and pittston co + <unk> <unk> jr. labor secretary during the ford administration was named to <unk> talks to settle the six-month strike by the <unk> + previous talks between pittston of greenwich conn. and the union have been sporadic and unsuccessful + the union called the strike in april after pittston refused to sign the <unk> 's national labor pact + pittston seeks changes in health and pension benefits among other things + no schedule for formal talks was set but meetings are expected to begin soon + one day after delmed inc. made top management changes and disclosed the end of an important business tie its stock did n't trade and the company forecast a significant drop next year in sales of its core product + that disclosure came a delmed spokeswoman said after the american stock exchange <unk> the company that trading would n't resume in its stock until additional information about developments was provided + in addition to the forecast the company also said it is <unk> potential cost cuts and reductions in overhead + the spokeswoman said the exchange would resume trading of delmed stock today + delmed which makes and sells <unk> dialysis products used in treating kidney disease on tuesday announced the resignations of robert s. ehrlich chairman president and chief executive officer and of leslie i. shapiro chief operating officer and chief financial officer + they were succeeded by executives of fresenius usa inc. and its parent fresenius ag which owns about N N of delmed + at the same time the new <unk> n.j. company said negotiations about pricing and volumes of product had collapsed between it and its exclusive distributor in the u.s. national medical care inc + following that announcement tuesday however company officials were unavailable to elaborate + yesterday the spokeswoman said sales of delmed products through the exclusive arrangement with national medical accounted for N N of delmed 's N sales of $ N million + the current distribution arrangement ends in march N although delmed said it will continue to provide some supplies of the <unk> dialysis products to national medical the spokeswoman said + nonetheless delmed currently expects that N sales will be significantly below their N level the company said in a statement + delmed said yesterday that fresenius usa would begin distributing the product and that the company is investigating other possible distribution channels + in any case supplies to patients wo n't be interrupted the company added + fresenius a west german pharmaceutical concern has been discussing a transaction in which it would buy delmed stock for cash to bring its beneficial ownership to between N N and N N + the transaction also would combine fresenius usa and delmed + but the plan now is being <unk> delmed said declining to provide most of the new terms of the combination + said the spokeswoman the whole structure has changed + the value of the company has changed + delmed did say that the proposal still would <unk> cash into delmed but less than the $ N million originally expected + delmed also would receive the north american rights to certain fresenius ag products + another option for delmed the company said is that it could sell its plant in ogden utah + it added that no discussions about such a sale are under way + brooks <unk> car service inc. never wanted to get into money laundering + but july N a <unk> in wilmington del. caused <unk> creek to rise N feet pouring N million gallons of water into <unk> <unk> + the water destroyed about $ N million in currency and <unk> $ N million of coins with <unk> <unk> them dangerous to counting machines + the $ N million in paper money although <unk> <unk> and <unk> was exchanged through the federal reserve bank of philadelphia without incident + but brooks was unable to reach a <unk> agreement with the government + we kind of got caught between <unk> says president william f. brooks jr + the u.s. mint would n't take the coin because it was n't <unk> and the federal reserve bank <unk> only clean coins he says + the philadelphia fed says it is merely an agent for coins responsible only for storage and distribution + we issue paper money we destroy paper money says <unk> <unk> a philadelphia fed spokeswoman + the coin is their problem + a mint official says the agency offered to clean the coins for its <unk> cost of $ N plus certain other expenses + but brooks declined figuring that <unk> the <unk> up money to washington would cost the company thousands more + so brooks gave the <unk> work to coin wrap inc. which came up with an unusual solution + for eight hours a day for the past two weeks in aggregates of as much as N pounds equaling $ N in pennies coin wrap has been pouring money into a <unk> truck + a giant <unk> working like a <unk> causes the <unk> to <unk> and burns off any <unk> + after <unk> around for an hour or so the <unk> hot money <unk> out of the cement <unk> where a giant vacuum <unk> away the <unk> <unk> and <unk> <unk> + after cooling the coins are then <unk> + brooks expects to pay coin wrap a total of about $ N a cost that insurance wo n't cover + and while the job is half done brooks is still bitter + in fact there 's only one person involved who 's happy and that 's <unk> string president of coin wrap and <unk> of the <unk> solution + not only did his company find $ N worth of work but when the approach was suggested mr. string says brooks officials did n't <unk> at me or anything + <unk> this summer 's successful and amusing movie about parents and children apparently was only the beginning + it seems that every day a new movie opens featuring a child coping with a mother 's death or adoption or aging parents or pregnancy + and why not + some of our best and most <unk> film makers from <unk> to <unk> to <unk> allen have taken a <unk> from <unk> when it comes to compelling drama there 's no place like home + yet too many people working in hollywood today seem to suffer from the <unk> that the drama played out in every home will be interesting to people who live somewhere else + this is not the case + some <unk> simply are n't worth <unk> in + yet there will be people who will <unk> at immediate family a <unk> constructed and offensive movie about adoption + these are the sensitive <unk> who can <unk> with and even enjoy hearing about other people 's troubles no matter how <unk> or predictably the sad tale is told + written by barbara <unk> co-author of the big <unk> immediate family takes the position that only rich people living in nice houses should have children + the film makers have <unk> this offensive idea in pretty packaging + everyone is very nice and <unk> the <unk> parents glenn close and james woods and the <unk> couple who decide to give up their baby for adoption mary stuart <unk> and kevin dillon + linda and michael ms. close and mr. woods who seem to be pushing N live in a large and <unk> <unk> home in suburban seattle + all of their friends have children and they ca n't so now they want a child more than anything perhaps even more than michael wanted his fancy convertible or his <unk> stereo equipment + the idea of a <unk> must be <unk> them since the wealthy <unk> of their friends are shown to be <unk> <unk> in therapy by age five + having exhausted all modern aids to <unk> linda and michael decide to adopt + the actors wear <unk> <unk> to indicate their genuine <unk> for a little one or maybe they 're <unk> commenting on the <unk> of the script and jonathan <unk> 's the accused <unk> direction + or maybe they are <unk> by the <unk> musical score when a character <unk> at a major decision her thoughts are revealed by the sound of i can see clearly now + the adoption agency insists on introducing the adopting parents to the birth mother so linda and michael pay for pregnant <unk> 's ms. <unk> bus ticket from ohio + why in these movies is the <unk> pregnant woman always from ohio + i ask this not necessarily as a native <unk> + <unk> of course is pretty and smart though <unk> + everyone falls in love with everyone else + there is some pain when <unk> has the baby and did n't know she would feel like this and wants to keep the baby + but in the end everything turns out for the best in the film makers ' <unk> view + like lawyers in the hostile takeover field the baby goes where the money is + at the other end of the life cycle is <unk> gary david goldberg 's <unk> of the william <unk> novel + this picture is about a <unk> son who makes sure that his delayed bond with his father will last by waiting to cement it until just before the old man dies + the <unk> emotional style mr. goldberg has <unk> on television 's family ties does n't benefit from <unk> + his characters practically <unk> through a vast range of human <unk> like travelers doing N cities in eight days + they <unk> only to register little <unk> of <unk> and <unk> of satisfaction like tourists <unk> the sights they 've seen from the window of a bus + not even jack <unk> 's expert <unk> makes this trip worth taking + so it 's entirely possible that look who 's talking is n't as entertaining as it seems in comparison to the <unk> other films opening now + but by comparison this <unk> comedy seems like a <unk> + it starts with conception taking the <unk> 's point of view then <unk> to the baby 's point of view + bruce <unk> 's best attribute as an actor is his <unk> <unk> voice and that 's all you get of him here speaking for the baby + finally there is one family movie that quite <unk> <unk> the <unk> of human <unk> only its stars are bears + for the second time in a movie called the bear french director <unk> <unk> demonstrates just how powerful pictures can be + <unk> for fire was the first time + to be sure one <unk> what kind of man is this who feels <unk> to try to understand the most <unk> <unk> and <unk> in a way that requires the most sophisticated appreciation of <unk> <unk> + supposedly he proposed the movie to his producer <unk> <unk> in four lines + an <unk> bear <unk> + a big <unk> bear + two <unk> in the forest + the animals ' point of view + but then even a great many words could n't <unk> the extraordinary pull of this movie about an <unk> bear who <unk> a parent + video tip + one of the best movies about the <unk> thing in recent years was raising arizona the N <unk> brothers ' comedy that definitely was not about the folks next door + westinghouse electric corp. <unk> on a major restructuring program expects operating margins of more than N N and double-digit per-share earnings growth next year top officers told securities analysts here + john c. marous chairman and chief executive officer also said the company expects sales from continuing businesses to rise N N annually through the next three years + in N the company earned $ N million or $ N a share on sales of $ N billion + since N westinghouse has shed N businesses that it did n't expect to produce N N operating margins while acquiring N businesses + in the past N months alone paul e. <unk> president and chief operating officer said the divestiture of $ N million of <unk> <unk> businesses has been more than offset by $ N million in profitable acquisitions + westinghouse expects to meet its corporate goals despite a softening in the economy + even if the gross national product is either flat or in the growth range of N N to N N we can handle that mr. marous said + gnp is the total value of the nation 's output of goods and services + a bright spot is the company 's <unk> business which is experiencing a surge of growth for the first time in years + mr. marous said the business will achieve higher sales this year than the company 's target goal of N N + while westinghouse has n't had a nuclear power plant order from a u.s. utility in about a decade excess capacity is beginning to shrink + mr. <unk> said the company <unk> the need for a major boost in <unk> capability throughout the 1990s + westinghouse also is well positioned to sell steam <unk> and gas <unk> plants to independent power producers + the company 's ability to respond to energy needs world-wide will be enhanced through a recently announced venture with mitsubishi heavy industries mr. <unk> said + he said the independent power segment could grow to provide as much as N N of near-term generation capacity adding we expect to supply a significant share of this market + westinghouse also expects its international sales to soon grow to N N of total corporate sales from N N last year + the company is negotiating with the soviets to build a <unk> king <unk> plant that would produce about N units annually + mr. marous said westinghouse would own N N of the facility + the deal which will involve an initial $ N million investment was struck with a <unk> he added + company officials also said that any gain from the sale of westinghouse 's N N stake in its transmission and distribution venture with the swiss firm of asea brown boveri will be offset by a restructuring charge in the fourth quarter + the executives did n't disclose the size of the expected gain + capital expenditure in N will rise slightly mr. marous said from an estimated $ N million this year + short interest in international mobile machines corp. fell to N shares in the month ended oct. N from N in september + because of an error by the national association of securities dealers the listing appeared incorrectly in the main table and several highlight tables in yesterday 's edition + a proposed <unk> policy for federally funded <unk> researchers may thwart many high-technology new ventures say financiers researchers and university administrators + the national institutes of health policy would require researchers to cut financial ties with health-care businesses or lose their government money + among other concerns the agency says researchers with business ties are more likely to <unk> findings in order to <unk> new drugs + as ties between <unk> and venture capital have <unk> in recent years <unk> fear of abuse has risen + but the guidelines could make it impossible to <unk> research says kenneth smith associate <unk> and vice president for research at massachusetts institute of technology + the nih is asking grant recipients and others for comments on the proposed guidelines until dec. N + after that it will make a final decision on the policy + the guidelines could <unk> future arrangements similar to the deal behind <unk> inc. a <unk> mass. start-up says robert daly a managing partner of <unk> associates a venture-capital firm + with $ N million he and other investors launched <unk> last year to market a <unk> cure being developed by researchers of the university of california at san diego + the researchers who are being financed by the <unk> funds will receive a royalty or percentage of sales if their research yields a commercial product + but because the university of california like many other universities shares its royalties with researchers it may <unk> itself from federal funds under the proposed guidelines mr. daly says + the high-tech industry is full of the kind of arrangement that the new guidelines would affect + for instance commonwealth <unk> inc. a venture-capital concern last month invested $ N to launch <unk> inc. a <unk> mass. concern that will produce pharmaceuticals + scientists <unk> <unk> and paul <unk> conducted the initial research at the massachusetts institute of technology + while ms. <unk> left mit to head <unk> prof. <unk> will continue to work at mit serve on <unk> 's board and own a small equity stake in the company + the <unk> transaction is typical of the way venture-capital firms are approaching the task of <unk> biotechnology research + while universities develop the basic research venture capitalists are the ones best positioned to finance its <unk> says <unk> w. <unk> of commonwealth + this is the best way to transfer technology straight off the <unk> of universities + but the new guidelines could prevent scientists like prof. <unk> from being involved with <unk> such as <unk> venture capitalists point out + and if that happens the entire process of <unk> technology to the marketplace could be <unk> they say + the stakes in the controversy are large + last year venture capitalists spent an estimated $ N million to finance start-up companies in medical and biotechnology businesses according to the national venture capital association a trade group + many of the deals involved transactions in which scientific institutions or researchers agreed to <unk> their work in return for an equity stake or royalties + in many of these deals venture capitalists had the inside track says lawrence <unk> of <unk> ventures la jolla calif + investors were willing to gamble on new technologies because we had exclusive rights to those technologies he adds + but under the proposed guidelines all federally funded research will have to be reported publicly so that anyone can capitalize on the work + without the exclusivity most venture capitalists wo n't have the incentive to invest in such deals mr. <unk> says + last year for example <unk> and others invested $ N million in <unk> <unk> inc. south san francisco calif. to license and develop technology for delivery of drugs to the brain + but before <unk> was able to get an exclusive license to the technology the federal register published most of the details giving all of the company 's potential competitors a chance to exploit it mr. <unk> says + <unk> eventually acquired exclusive rights to the technology and currently is developing it + but says mr. <unk> it was a close call + the proposed guidelines could also delay <unk> and force small companies to waste scarce capital entrepreneurs say + if <unk> ca n't have early access to research being conducted at institutions we have to <unk> it ourselves or do without the research says ruth <unk> manager of business development at applied biotechnology inc. a cambridge mass. concern + <unk> research is both costly and <unk> for a start-up ms. <unk> says + for its part nih insists that its guidelines should not <unk> research creativity or technology transfer from the research laboratory to commercial use + universities such as harvard and mit should be able to develop a way to act as brokers for the individual scientists says <unk> <unk> who oversees the huge nih grants program as its deputy director for <unk> research + nih staff members believe the guidelines are essential to prevent the <unk> of problems that have already begun to surface in scientific ventures + not long ago scientists holding stock in <unk> pharmaceutical services inc. were accused of <unk> research to boost the stock + many officials are also concerned about companies getting a free ride on <unk> research + a congressional <unk> has been investigating the potential abuse from researchers holding stock in companies <unk> their research + among other provisions the nih guidelines would prohibit researchers and members of their immediate families from holding stock in any company that is affected by the outcome of their research + ms. <unk> the nih administrator says the business and scientific community is <unk> to what the agency merely meant to be ideas for discussion + the predictions of <unk> are <unk> she says + but when agencies like the nih <unk> guidelines they 've often already <unk> policy veteran scientists say + indeed institutions already are taking note + on sept. N harvard began circulating a <unk> policy statement that in effect would follow the nih guidelines <unk> + the university of california at san francisco is also circulating a memo among its scientific faculty that will restrict contact with the world of business + in many other institutions scientists are <unk> contacts with venture investors until the nih policy is settled + says mr. daly the venture capitalist it does n't matter whether they call it guidelines or policy + the damage is already done + friday oct. N N <unk> edt on pbs pbs air dates and times vary so check local listings show boat + new jersey 's paper mill <unk> produced this <unk> revival of america 's most influential musical written by jerome <unk> and <unk> <unk> and first produced on broadway in N + worth watching although the music has lasted better than the plot or the humor + saturday oct. N N p.m. edt on hbo repeated oct. N nov. N N N N and N perfect witness + <unk> <unk> brian <unk> and <unk> <unk> are excellent in this <unk> tale of a reluctant witness in an organized crime prosecution + it 's set in new york but it <unk> with the terrible dynamics of the latin american drug wars + sunday oct. N N p.m. est on abc the final days + no doubt there is something to <unk> everyone in this <unk> <unk> of bob <unk> and carl bernstein 's book about <unk> + personally i 'm <unk> by its combination of <unk> and <unk> which adds up to an <unk> lack of drama + sunday oct. N N p.m. est on showtime repeated nov. N N N and N the strange case of dr. <unk> and mr. <unk> + fans of anthony <unk> <unk> <unk> will <unk> watching him play the title role s in the <unk> robert louis stevenson <unk> drama of <unk> <unk> + monday oct. N N p.m. est on pbs <unk> into sleep + i promise you will stay <unk> through this intriguing <unk> about the science of sleep + wednesday nov. N N p.m. est on pbs thomas hart benton + critical opinion is divided about the success of benton 's <unk> <unk> of <unk> art + but no one could disagree that ken burns has made a <unk> film about this famous american <unk> + thursday nov. N N p.m. est on <unk> repeated at N a.m. and on nov. N third and oak the pool hall + a <unk> by the <unk> <unk> playwright <unk> norman is the first presentation in a new series called american <unk> theater sponsored by general motors + james <unk> jones and mario van <unk> carry out a bitter <unk> dialogue between two black men + <unk> nov. N N p.m. est on pbs taiwan the other china + <unk> <unk> hosts this <unk> <unk> series about the history economy culture and politics of the island home of chinese democracy and capitalism + friday nov. N N p.m. est on pbs our town + along with show boat great performances <unk> off its new season with this lincoln center production of <unk> wilder 's best known play in which the role of the small-town stage manager is given a <unk> twist by performance artist <unk> gray + saturday nov. N N p.m. est on nbc <unk> 's cup day + <unk> <unk> fancy turf fat <unk> the horse race of the year + sunday nov. N N <unk> p.m. est on abc new york city marathon + <unk> <unk> <unk> cement media glory the foot race of the year + sunday nov. N N p.m. est on <unk> gary <unk> american life american <unk> + i 've seen a great many <unk> film <unk> and this one is outstanding + <unk> nov. N N p.m. est on pbs glory enough for all + can <unk> theatre make a compelling human story out of the discovery of insulin + this <unk> amusing film answers with a <unk> yes + sunday and monday nov. N and N N p.m. est on nbc cross of fire + the <unk> <unk> <unk> was revived in the 1920s as a national organization aimed at <unk> and <unk> as well as blacks + one reason for its <unk> was the murder trial of d.c. <unk> an indiana leader whose reckless career is <unk> in this film <unk> <unk> harris <unk> and john heard + tuesday nov. N N p.m. est on pbs hurricane + has the san francisco earthquake caused you to forget hugo + you 'll remember when you see the stunning <unk> taken from inside a hurricane 's eye in this edition of <unk> + merksamer jewelers inc. a fast-growing jewelry store chain filed for chapter N bankruptcy-law protection from creditors apparently to speed a management buy-out of the chain + the filing made yesterday in u.s. bankruptcy court here follows an agreement by l.j. hooker corp. merksamer 's owner to sell the chain to management for an undisclosed price + ge capital corp. a financial services subsidiary of general electric co. is providing merksamer management with $ N million in financing + l.j. hooker based in atlanta filed for chapter N protection in august and has also announced its intention to sell its b. altman & co. department store chain + l.j. hooker is owned by hooker corp. sydney australia which itself is currently being managed by a court-appointed provisional <unk> + l.j. hooker 's planned sale of merksamer is subject to approval by judge <unk> <unk> of u.s. bankruptcy court + rumors to the effect that the merksamer chain would file for chapter N arose last week in the jewelry industry + at that time sam merksamer president of the chain <unk> denied that his company was about to file + mr. merksamer is leading the buy-out + according to executives close to the situation merksamer filed for chapter N to speed the sale of the chain + one executive said an accord signed by the unsecured creditors of l.j. hooker corp. had frozen in place all of l.j. hooker 's assets + the merksamer bankruptcy-law filing appears to <unk> that agreement + by filing for chapter N the merksamer chain will only need approval from a bankruptcy judge for the sale not the hundreds of unsecured creditors said this executive + the cash from the sale will go to l.j. hooker but the company itself will belong to sam merksamer + mr. merksamer and sanford <unk> chief executive of l.j. hooker were unavailable for comment + in a statement mr. merksamer described the filing as a legal <unk> but also said that our inability to obtain trade credit combined with a need to ensure that our stores were properly <unk> for the christmas season <unk> our filing chapter N + the jewelry chain which is based in sacramento calif. had revenue of $ N million and operating profit of $ N million for the year ended june N + for all of this year 's explosive <unk> in stock prices renaissance investment management inc. 's computer sat on the sidelines + now it 's on the <unk> + renaissance a <unk> money manager began buying stocks again this week with half of the $ N billion that it oversees for clients according to people familiar with the firm 's revised strategy + it was the first time since january that renaissance has thought stocks are worth owning + renaissance declined to confirm the move but its stock purchases were thought to have begun tuesday <unk> to <unk> with the maturity this week of treasury bills owned by the firm + the other half of its portfolio is expected to remain invested in treasury bills for the time being + wall street executives said they believed that renaissance 's $ N million buy program was carried out by painewebber inc + as reported painewebber bought shares tuesday as part of a customer strategy shift although the broker 's client was said then to have been japanese + yesterday painewebber declined comment + when it owns stocks renaissance 's portfolio typically is composed of about N <unk> issues to make buy or sell moves the firm <unk> wall street brokerage houses a day or so in advance looking for the best package price to carry out the trades + the broker winning the business does n't charge commissions but instead profits by buying or selling for less than the overall package price + that puts the broker at risk if it 's trying to buy stock in a rising market + in tuesday 's <unk> session the dow jones industrial average fell by N points early in the day but finished with less than a <unk> loss + renaissance 's last portfolio shift carried out by goldman sachs & co. was a highly publicized decision last january to sell its entire stock portfolio and buy treasury bills + the sell signal which sent a bearish <unk> through the stock market came when renaissance 's computer found that stocks were <unk> compared with bonds and treasury bills + at the time the dow jones industrial average stood at about N + the dow average now stands more than N N higher while renaissance 's portfolio of treasurys produced a return of about N N through the first three quarters of the year + the computer 's <unk> has been painful for renaissance + almost any money manager holding stocks has turned in better results while renaissance has played it safe with treasury bills + so why does renaissance 's computer like stocks with the dow at N where it closed yesterday when it did n't with the dow at N + with the decline in stock prices and continued low or stable interest rates stocks are representing a better value all the time renaissance president frank w. <unk> said yesterday + three-month <unk> yields have fallen to N N from about N N at the start of the year + stock prices meanwhile are about N points lower than the peak of N reached on the dow industrial average oct. N + are those declines enough to signal a partial return to stocks + mr. <unk> wo n't say specifically explaining that if there was such a move it would take about three days to complete the loose ends of the transaction + during that time a buyer with the clout of a renaissance could end up driving up the price of stocks it was trying to buy if it <unk> its hand + but everything is relative to mr. <unk> so stocks in his view can become more attractive in comparison with bonds or <unk> even if shares are more expensive than when they were sold in january + our computer model has a certain trigger point he said + when the computer says switch renaissance switches + the firm has made N previous shifts from one type of asset to another in its 10-year history + almost all have involved at least half and often the firm 's entire portfolio as the computer searches for the most undervalued investment category following a <unk> style called tactical asset allocation + competing <unk> firms march to their own computer models so some have been partly or fully invested in stocks this year while renaissance has sat on the sidelines + as a result competitors say renaissance has been looking for any opportunity to return to the stock market rather than risk losing business by continuing to remain fully invested in treasury bills + mr. <unk> confirms some clients have left renaissance but no major ones and the firm has added new accounts + david evans who last week resigned as president and chief executive of qintex entertainment inc. for personal reasons just as the company filed for bankruptcy-law protection has been temporarily <unk> to both positions the company said + qintex entertainment also said chief financial officer and treasurer jonathan lloyd N years old would join the <unk> board + he succeeds roger <unk> who resigned last week saying his participation in evaluating the company 's role in buying mgm\/ua communications co. was no longer necessary + mr. evans will stay until a successor is found but not later than the end of the year the company said + it was the <unk> mr. evans who had moved into the offices of mgm\/ua and run the company during qintex australia ltd. 's aborted bid for the movie company + after mgm\/ua terminated the $ N billion merger because of a dispute over a $ N million letter of credit qintex entertainment which is <unk> by qintex australia found itself facing problems of its own + and the relationship between qintex entertainment and the australian company appears to be quickly deteriorating + on oct. N qintex entertainment was about to default on a $ N million payment owed to mca inc. in connection with the distribution of a television program + qintex entertainment was depending on qintex australia to arrange financing + but early on oct. N the second of two hectic days of board meetings mr. evans said he believed qintex australia would n't be <unk> + he recommended that the company file for protection under chapter N of the u.s. bankruptcy code before the mca deadline according to a source familiar with the sessions + but a majority of the board which includes three members from the australian company <unk> him + mr. evans resigned + later in the day according to the source the board reversed itself decided to file for bankruptcy protection and asked mr. evans to stay on + mr. evans told the board he needed the weekend to think about it + mr. evans could n't be reached yesterday for comment + last monday qintex australia announced a restructuring plan and said it would sell off assets + last week the company indicated it would cut back on the working capital it would supply to qintex entertainment + separately a qintex entertainment shareholder filed suit in federal court in los angeles charging qintex australia with misleading shareholders about qintex entertainment 's financial position + qintex australia said it had n't seen the suit and could n't comment + the sept. N tracking travel column advises readers to charge with caution when traveling abroad because credit-card companies charge N N to convert foreign-currency expenditures into dollars + in fact this is the best bargain available to someone traveling abroad + in contrast to the N N conversion fee charged by visa foreign-currency dealers routinely charge N N or more to convert u.s. dollars into foreign currency + on top of this the <unk> who <unk> his dollars into foreign currency before the trip starts will lose interest from the day of conversion + at the end of the trip any <unk> foreign exchange will have to be converted back into dollars with another commission due + the card holder will pay the modest N N fee only on the amounts actually needed + typically he will be billed only several weeks after the expenditure and then has another couple of weeks before he has to pay the bill + in the meantime the money can continue to earn interest for the card holder often more than N N during that float period alone + daniel <unk> + visa u.s.a. inc + mgm grand inc. has agreed to pay $ N million and nearly N million common shares to buy N acres of land along the las vegas nev. strip as a site for its planned <unk> and <unk> resort + of the total purchase price $ N million cash and $ N million in stock nearly N million shares would be paid to buy the existing <unk> marina hotel & casino from southwest securities a nevada limited partnership + the remaining properties to be acquired are the <unk> country club & golf course a facility jointly owned by ramada inc. of phoenix ariz. and the <unk> family and a small parcel owned by mgm grand director james d. <unk> + the purchase price was disclosed in a preliminary prospectus issued in connection with mgm grand 's planned offering of six million common shares + the luxury airline and casino company <unk> by investor kirk <unk> and his <unk> corp. earlier this month announced its agreements to acquire the properties but did n't disclose the purchase price + the proposed stock offering and issuance of nearly N million common shares in connection with the land purchase will bring mgm grand 's total shares outstanding to N million of which N N will be owned by mr. <unk> and <unk> according to the prospectus + in over-the-counter trading mgm grand was bid at $ N a share + proceeds from the offering are expected to be used for remodeling the company 's desert <unk> resort in las vegas <unk> certain aircraft of the mgm grand air unit and to acquire the property for the new resort + the company said it estimates the desert <unk> remodeling will cost about $ N million and the <unk> of the three <unk> aircraft made by mcdonnell douglas corp. will cost around $ N million + mgm grand said the latest stock offering wo n't cover the $ N million or more cost of building the proposed resort and theme park and added it will need to seek additional financing either through bank borrowings or debt and equity offerings at a later date + construction is set to begin in early N + the resort will include the mgm grand hotel a <unk> <unk> facility that will include N rooms and N square feet of casino space + the facility will be marketed toward families and room rates will be between $ N and $ N a night mgm grand said + the prospectus did n't include many details about the studio and theme park although conceptual drawings released this month show that it may feature several <unk> areas similar to those found at parks built by walt disney co + investors poured $ N billion more into money-market mutual funds in the latest week despite further declines in yields + assets of the N taxable funds tracked by <unk> 's money fund report jumped to $ N billion in the week ended tuesday the <unk> <unk> newsletter said + assets soared $ N billion in the previous week + meanwhile the average yield on taxable funds dropped nearly a <unk> of a percentage point the largest drop since <unk> + the average seven-day compound yield which assumes that dividends are reinvested and that current rates continue for a year fell to N N its lowest since late last year from N N the week before according to donoghue 's + lower yields are just reflecting lower short-term interest rates said <unk> <unk> <unk> editor of money fund report + money funds invest in such things as short-term treasury securities commercial paper and certificates of deposit all of which have been posting lower interest rates since last spring + individual investors can still get better yields on money funds than on many other short-term instruments + the yield on six-month treasury bills sold at monday 's auction for example was just N N + the average yield on six-month cds of $ N or less at major banks was N N in the week ended tuesday according to banxquote money markets a new york information service + one way that money fund managers boost yields in a declining rate environment is by extending the maturities of their investments so they can earn the current higher rates for a longer period + the average maturity of the taxable funds that donoghue 's follows increased by two days in the latest week to N days its longest since august + they 're anticipating further declines in rates and they 're going to get them slowly said walter frank chief economist for the donoghue organization publisher of money fund report + average maturity was as short as N days at the start of this year when short-term interest rates were moving steadily upward + the average seven-day compound yield of the funds reached N N in late april + the <unk> funds are still above N N + the <unk> fund in the latest week was dreyfus worldwide dollar with a seven-day compound yield of N N + the fund invests heavily in dollar-denominated money-market securities overseas + it is currently <unk> management fees which <unk> to the higher yield + the average seven-day simple yield of the N funds fell to N N from N N donoghue 's reported + the average 30-day simple yield slid to N N from N N and the average 30-day compound yield fell to N N from N N + many small investors are facing a double <unk> this year they got hurt by investing in the highly risky junk bond market and the pain is worse because they did it with borrowed money + these people invested in leveraged junk bond mutual funds the publicly traded funds that make a habit of taking out loans to buy extra junk + it 's a good strategy in a rising market where a N N leveraged portfolio in effect allows investors to have N N of their money working for them + the strategy boosts current yield by putting more bonds into the portfolio + trouble is junk bond prices have been weak for months + thus the leverage has <unk> the funds ' portfolio losses + and shares of leveraged junk funds this year have been clobbered even harder than the junk bonds they hold + that 's really where the leverage hurt says thomas <unk> a miami-based investment manager who specializes in closed-end funds + share prices performed even worse than the funds ' asset values because fear has taken hold in the junk market he says + leverage is never a problem for the traditional open end mutual funds which are n't publicly traded and are n't allowed to use leverage at all + leverage is used only by some of the closed-end funds + the usual maneuver is to borrow against the portfolio value or issue preferred stock using the proceeds to buy additional bonds + the fallout for investors lately has been painful + consider the new america high income fund + with a leveraged position of about N N the fund 's share price has plunged N N so far this year + that 's worse than the price drop sustained by the bonds in its portfolio whose total return <unk> changes plus interest has amounted to a negative N N + such problems may not be over + leveraged funds in particular are still extremely vulnerable because we 're still at the beginning of problems in the junk market says george foot a managing partner at <unk> management associates in <unk> mass + many investors are <unk> their funds have borrowed to speculate in such a risky market + if someone actually sat down and thought about what they were being sold says gerald <unk> editor of the mutual fund letter in chicago they might shy away + in a typical leverage strategy a fund tries to capture the spread between what it costs to borrow and the higher return on the bonds it buys with the borrowed money + if the market <unk> holders can make that much more profit the leverage effectively acts as an <unk> margin account for investors + but when the market moves against the fund investors lose more than other junk holders because the market decline is magnified by the amount the fund is leveraged + fund managers for their part defend their use of leverage + carl <unk> who runs the colonial intermediate high income fund says the fund 's N N leverage has <unk> up its interest income + as long as i am borrowing at N N and each bond yields over that it <unk> the yield he maintains + mr. <unk> says he tries to offset the leverage by diversifying the fund 's portfolio + yet some funds have pulled in their <unk> + new america high income fund recently said that it plans to reduce its leverage position by buying back $ N million in preferred stock and notes from investors + the fund made a similar move earlier this year + we are trying to increase our flexibility says <unk> e. terry a vice president at <unk> capital management the fund 's investment adviser + she declined to elaborate and would n't disclose the fund 's recent purchases sales or cash position + ms. terry did say the fund 's recent performance illustrates what happens in a leveraged product when the market does n't cooperate + when the market turns around she says it will give a nice picture of how leverage can help performance + several leveraged funds do n't want to cut the amount they borrow because it would slash the income they pay shareholders fund officials said + but a few funds have taken other defensive steps + some have raised their cash positions to record levels + high cash positions help buffer a fund when the market falls + prospect street high income portfolio for instance now holds about N N in cash and equivalents nearly <unk> the amount it held earlier this year says john <unk> portfolio <unk> + he says the fund which is N N leveraged has maintained a substantial cushion between its borrowing costs and the yields of the portfolio 's bonds + i do n't want to be in a position to have to sell mr. <unk> says + other funds have recently sold weak junk bonds to raise cash + at the <unk> zenith income fund portfolio manager john <unk> recently dumped mesa petroleum <unk> and <unk> industries among others to raise his cash position to a record N N + that 's a problem because cash is n't earning us very much money mr. <unk> says + he concedes this is the most difficult market that i 've been involved in + because of the recent <unk> turmoil the fund is considering investing in other issues instead including mortgage-backed bonds + we 're looking at the leverage factor every day says robert moore president of <unk> inc. a shearson lehman hutton inc. unit and the fund 's adviser + at some point if we are unable to cover our leveraged cost and at the moment we 're right on it we 're going to have to make a move + one of the more bizarre garden stories since <unk> has been <unk> for four years now in the private <unk> <unk> of artist <unk> bartlett + and if she and the battery park city authority have their way her <unk> <unk> plan will soon go public as a real garden <unk> in the downtown complex + south gardens as the bartlett scheme is called will <unk> the last N acres of open space at the southwest tip of manhattan + it could cost taxpayers $ N million to install and <unk> residents $ N million a year to maintain + created by an artist who <unk> her ignorance of plants and gardens south gardens as now planned will die from <unk> garden design + ms. bartlett 's previous work which earned her an international reputation in the <unk> art world often took gardens as its nominal subject + <unk> this <unk> connection made the <unk> fine arts committee think she had a <unk> green <unk> + ms. bartlett would not discuss her garden for this article + last year she <unk> to <unk> magazine i 'd never looked at a garden in my life + and she proved no <unk> <unk> in her initial statement to the bpca a new york state public benefit corporation the only thing i was interested in doing was a very complicated garden which would cost an enormous amount of money and be very expensive to maintain + <unk> the bpca hired ms. bartlett and another confessed garden <unk> the architect alexander <unk> who claimed he had never visited much less built a garden and said of the project i do n't view this as a landscape + i view this as a building + the third principal in the south gardens <unk> did have garden experience + the firm of bruce <unk> <unk> landscape architects had created central park 's <unk> fields and shakespeare garden + the bpca called its team a stunning collaboration + after four years though the south gardens design is N N <unk> <unk> bartlett + she has done little more than <unk> her standard <unk> trees water landscape <unk> <unk> square houses circles <unk> <unk> and fit them into a grid as if she were making one of her <unk> <unk> works for a gallery wall + but for south gardens the grid was to be a <unk> network of <unk> or hedge walls with real plants inside them + in a letter to the bpca <unk> called this <unk> and <unk> + the landscape architects were expelled from the garden in july + all the while ms. bartlett had been busy at her <unk> <unk> in her sense of <unk> + as she put it in a N <unk> at the harvard graduate school of design i have designed a garden not knowing the difference between a <unk> and a <unk> + moreover she proclaimed that landscape architects have been going wrong for the last N years in the design of open space + and she further stunned her <unk> by <unk> her secret garden design method <unk> a friend to spend five or six thousand dollars on books that i ultimately cut up + after that the <unk> had been easy + i 've always relied heavily on the grid and found it never to fail + ms. bartlett told her audience that she absolutely did not believe in compromise or in giving in to the client because i do n't think you can do <unk> versions of things + this was never a problem with south gardens because the client had long since given in to ms. bartlett 's every <unk> + last year the public was <unk> a <unk> of ms. bartlett 's creation in a <unk> version at a <unk> exhibition + the labels were <unk> within its <unk> walls is a <unk> of a thousand years in garden design a rose garden <unk> garden <unk> garden <unk> fields an apple <unk> organized in a <unk> of <unk> <unk> to form rooms here and there are simple architectural forms a <unk> jet of water a <unk> of topiary or <unk> <unk> and chairs of every sort to drag around + at the core of it all is a love for plants + plant <unk> who studied the <unk> were alarmed + they looked at the <unk> and saw a giant <unk> + ms. bartlett 's little rooms left little room for plants or people + <unk> had put south gardens ' carrying capacity at four people per room or about N humans overall + this <unk> of tiny <unk> <unk> was inspired by the artist 's own digs my <unk> was N by N feet so N feet by N feet seemed like a good garden room + inside the grid were N of these plant cells <unk> full of clutter + one she made into a topiary <unk> room <unk> with plants <unk> into a <unk> tv piano and chairs + in another she <unk> topiary <unk> missile <unk> costing $ N each in heights up to N feet + another she <unk> with eight <unk> hedges for a topiary <unk> lesson in the <unk> of plants + in the <unk> <unk> she specified a <unk> <unk> garden <unk> + she ordered the <unk> done in a different <unk> <unk> and made the landscape architects study a book on <unk> + in one garden <unk> she <unk> a <unk> square glass <unk> meant to show off a <unk> <unk> floor <unk> a <unk> sink a huge <unk> with <unk> and a <unk> with <unk> + next door she put a smaller <unk> glass house where she suggested a flat of <unk> might be displayed in the dead of winter + in another <unk> called the <unk> <unk> N <unk> trees were to be crowded together at killing <unk> of N or N feet + <unk> need about N feet + one thing about the bartlett plan was never in doubt it would demand the full-time skills of a <unk> of topiary <unk> <unk> <unk> and <unk> + ms. bartlett <unk> suggested calling upon <unk> garden club workers for maintenance + furthermore she had insisted on <unk> so narrow five to eight feet and hedge corners so square that standard maintenance equipment trucks or cherry pickers could n't maneuver + then to make these <unk> quite literally rooms ms. bartlett had thrown up <unk> walls brick <unk> hedge eight to N feet tall casting her <unk> into <unk> <unk> <unk> + it was hard to see how <unk> would ever happen in south gardens without <unk> the walls in a <unk> array of <unk> + finally <unk> the bpca 's wishes to continue the popular <unk> <unk> <unk> <unk> for its <unk> views of new york harbor the <unk> of liberty and ellis island ms. bartlett threw up yet another wall this time concrete this time N N feet tall + she ran it the length of the south gardens <unk> <unk> out the city 's great natural water features the harbor and the river + within her garden she has <unk> a <unk> a <unk> <unk> and other costly <unk> waterworks <unk> the hudson + while the model was still on view manhattan community board N passed a resolution against south gardens + the parks council wrote the bpca that this too private exclusive complex and expensive <unk> garden belongs in almost any location but the <unk> + <unk> b. miller the noted public garden designer who restored central park 's <unk> garden recalls her reaction to the south gardens model in light of the public garden she was designing for <unk> street 's bryant park bryant park as designed in N failed as a public space because it made people feel trapped + by removing the hedges and some walls the bryant park restoration is opening it up + it seems to me the bpca plan has the potential of making south gardens a <unk> jail for people and plants + the three urban <unk> experts with cornell cooperative extension weighed in with a letter to the bpca that began we feel that the garden is <unk> doomed + they then addressed the <unk> questionable safety of a complex garden of endless <unk> places + the N <unk> hedges which <unk> views in and out of small rooms insure that this garden will be a potential breeding ground for crime + at harvard ms. bartlett had declared there are going to be problems with safety + i 'm not going to address questions of safety + despite the dire <unk> of knowledgeable garden professionals ms. bartlett 's south gardens design somehow continues on seemingly <unk> to reason stalled only by bureaucratic <unk> and <unk> <unk> + bpca president and ceo david <unk> hopes to negotiate a <unk> that could be significantly more <unk> <unk> + and by <unk> yet another landscape architect nicholas <unk> he insists he can achieve that and other <unk> to <unk> reality while still preserving the artistic vision of a truly great artist + after four years of no progress in this direction it is doubtful any viable collaboration with ms. bartlett will suddenly now be possible + mr. <unk> has said he plans to go with the grid regardless + there is still time however for gov. mario <unk> or <unk> <unk> chairman of the bpca board to prevent this topiary <unk> <unk> + these <unk> might take counsel from william robinson author of the english <unk> garden the <unk> 's <unk> since N who seems to have had a <unk> bartlett in mind when he wrote <unk> our <unk> for ages have suffered at the hands of the <unk> artist when applying his designs to the garden + it is this <unk> of absurd <unk> ' and patterns from old books to any surface where a <unk> garden has to be made that leads to bad and <unk> design wrong in plan and <unk> for the life of plants + i read the <unk> of wayne <unk> 's exchange with a <unk> representative put the soviet economy on golden <unk> editorial page oct. N with great interest since the gold standard is one of my areas of research + mr. <unk> is incorrect when he states that the soviet union 's large gold reserves would give it great power to establish credibility + during the latter part of the 19th century russia was on a gold standard and had gold reserves representing more than N N of its outstanding currency but no one outside russia used rubles + the bank of england on the other hand had gold reserves that averaged about N N of its outstanding currency and bank of england notes were accepted throughout the world + the most likely reason for this <unk> is that the bank of england was a private bank with substantial earning assets and the <unk> rights of creditors to collect claims against the bank were well established in britain + by contrast in <unk> russia an <unk> government owned the bank and had the power to revoke payment whenever it chose much as it would in today 's soviet union + the success of the british gold standard was due to independent private banking and common law rather than the choice of gold for <unk> the currency + it is no <unk> that from N to N when the bank of england was an independent private bank the pound was never <unk> and payment of gold for pound notes was never suspended but with the subsequent <unk> of the bank of england the pound was <unk> with increasing frequency and its use as an international medium of exchange declined + the soviet union should keep these <unk> in mind as it seeks to establish the ruble as an international currency + one way to make the ruble into a major international currency would be to leave reserves of gold and earning assets in a swiss bank with distributions based on swiss laws + unless the laws determining the <unk> 's rights to payment are independent of the issuer of those notes however a <unk> ruble would be as unsuccessful for the soviets as it was for the <unk> + christopher r. <unk> + professor of taxation + california state university + <unk> calif + wednesday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + securities and exchange commission chairman richard breeden told a congressional subcommittee that he would consider imposing circuit breakers to halt program trading at volatile times + mr. breeden in his first testimony to congress since taking the sec post said the agency is studying the friday the 13th market plunge including how current circuit breakers affected the market that day and the following monday + after the study the sec would be willing to consider adding new circuit breakers or <unk> the current ones he added + circuit breakers designed to give the markets a <unk> in cases of sharp price movements curb trading of futures or stocks at various trigger points + at certain points during the friday the 13th drop circuit breakers kicked in on the futures market slowing trading at times + a circuit breaker that would have closed down the new york stock exchange was n't <unk> + rep. edward markey d. mass. chairman of the house telecommunications and finance subcommittee is pushing the idea of a circuit breaker for computer-driven program trading in hopes that would curb turmoil in the marketplace + he argued that program-trading by roughly N big institutions is pushing around the markets and scaring individual investors + mr. breeden did n't reject the proposal + after the sec study of the drop is completed he said i 'm perfectly happy to work with this committee in identifying whether we need other devices such as a program-trading curb + mr. breeden backed most of the provisions in a <unk> bill that the sec brought to the subcommittee last year under <unk> david <unk> + the measure is expected to move through this congress + but the new chairman <unk> opposed a provision in the bill that would give the agency the right to close the markets at times of stress + mr. breeden contended that uncertainty over when the sec might act could worsen volatility in the markets + he argued that the current <unk> system allows investors to know precisely when and where any trading <unk> will occur and how long they will last + mr. breeden offered strong support for two other provisions in the bill + one would force brokerage houses to provide the sec detailed information about loans made by their holding companies + such loans often are used to finance leveraged buy-outs and the agency is worried that a sharp market drop could create capital problems for the firms + he also backed a rule to require large traders to report transactions on a <unk> basis + that information he argued is critical to <unk> sharp market moves such as the one nearly two weeks ago + in a rare package sale of its real estate k mart corp. <unk> mich. has sold N of its strip shopping centers to a limited partnership led by new york developer philip <unk> according to sources familiar with the transaction + they estimate the value of the transaction at close to $ N million + k mart officials and mr. <unk> would n't comment on the sale + k mart previously had announced it would report its third consecutive decline in quarterly earnings for the period ended yesterday the same day the real estate deal was completed + analysts are estimating third-quarter earnings will drop between N N and N N to about N to N cents per share compared with N cents per share in the year-ago quarter + it is unclear what effect the sale of the shopping centers will have on earnings + k mart developed the centers which range in size from about N square feet to just over N square feet + most are <unk> by a k mart store + the retailer reportedly will lease its stores back from the developer who plans to expand the small centers + the centers <unk> a total of about N million square feet of retail space + they are spread around the country and include locations in california florida washington and arizona + mr. <unk> who heads <unk> international holding corp. a new york-based real estate company owns more than a dozen other shopping centers in which k mart is a <unk> + the company is active in office and residential development in new york + however nationally mr. <unk> controls through limited partnerships about N shopping centers with about N million square feet + k mart runs N k mart stores primarily in leased facilities + the company typically sells the centers it develops but has usually sold only one or several at a time + motorola is fighting back against junk mail + so much of the stuff poured into its austin texas offices that its mail rooms there simply stopped delivering it + now thousands of <unk> <unk> and sales pitches go straight into the trash + we just do n't have the staff to deliver it nor do we have the space or the time says a spokesman for the <unk> ill. electronics company which has N employees in the austin area + it 's the <unk> problem and the weight problem we have + motorola is in good company + businesses across the country are getting fed up with junk mail and some are saying they just are n't going to take it anymore literally + while no one has tracked how many company mail rooms throw out junk mail direct-mail advertising firms say the number is growing + general motors earlier this year said it would n't deliver bulk mail or free magazines in its <unk> mich. office while air products & chemicals <unk> pa. says it screens junk mail and often throws out most of a given mass mailing + why the <unk> + anybody with a <unk> can answer that sheer overwhelming <unk> volume + according to the direct marketing association total direct mail to both businesses and consumers jumped N N to N billion pieces in N from five years earlier + though direct mail to businesses is n't broken out separately the association says it 's growing even faster + the <unk> has spurred <unk> companies to action with mail rooms throwing the stuff out rather than taking the time or money to deliver it + the direct-mail industry not surprisingly is <unk> at the <unk> of it all + after all this is the industry that has a hard enough time getting any respect that is the <unk> of so many jokes that television 's l.a. law <unk> <unk> david as short <unk> intensely <unk> and <unk> boring + the practice of businesses throwing out junk mail is a commonly known problem and it 's increasing as companies attempt to put through budget cuts across the board right down to the <unk> level says stephen <unk> a list consultant and chairman of the direct marketing association 's <unk> council + but it 's like <unk> the hand that feeds them because every one of these companies uses direct marketing + it 's almost impossible to track the number of companies <unk> junk mail since the decision is usually made in the mail room not the board room + and the practice often <unk> from location to location even within a company + but industry executives say businesses seem especially inclined to dump <unk> sent to titles rather than to individual names + motorola 's austin operation was one of the first to lose patience deciding a few years ago to junk any bulk mail that was n't addressed to an individual + magazines are n't delivered at all even if an individual 's name is listed employees who want their magazines have to pick them up from the mail room or the company library and are told to change the <unk> to their home addresses + at air products meanwhile the <unk> staff opens junk mail and often throws it away even if addressed to an individual + if they get N <unk> of something they open one see what it says throw N away and send two to people or departments they think are appropriate a spokesman says + direct marketers were especially alarmed when general motors one of the country 's largest companies and a big direct-mail user itself entered the <unk> battle + as of march N its <unk> office with about N employees stopped delivering bulk mail and <unk> magazines + employees were told that if they really wanted the publications they would have to have them sent home instead + the reason <unk> especially of <unk> magazines + direct-mail executives see gm 's stand as an <unk> sign even if the <unk> <unk> did bring it on themselves + why anyone would want to close themselves off from direct mail a <unk> does n't make any sense says michael bronner of bronner <unk> associates a boston <unk> firm + it <unk> of big <unk> + they 're going to decide what their employees can or can not read + the practice is however legal in most cases + jack ellis a u.s. postal inspector in new york says the postal service 's only job is to deliver the mail to the mail room once it gets there a company can do with it what it wishes + the <unk> <unk> ever optimistic are looking for ways around the problem + so far they say it has n't had any <unk> effect on response rates + and before it does they 're trying to cut back on the clutter that created the situation in the first place + among other things the industry is trying to come up with standardized business lists that cut down on <unk> + we 're going to have to mail a lot less and a lot <unk> says jack miller president of <unk> corp. a <unk> ill. <unk> mail-order company + but then again mailing less and <unk> wo n't be much help if the mail ends up in the garbage anyway + new hyundai campaign + hyundai motor america fighting quality complaints declining sales and management turmoil yesterday unveiled its N ad strategy <unk> we 're making more sense than ever + the ad campaign created by saatchi & saatchi 's backer spielvogel bates agency is an extension of the auto company 's cars that make sense campaign which emphasized <unk> + tv ads <unk> the company 's new <unk> <unk> and its <unk> <unk> <unk> will begin appearing monday + one spot shows a <unk> next to a rival midsized car and an announcer says listen to what they 're saying about the hyundai <unk> + as the announcer reads favorable quotes about the model from motor trend and road & track magazines the other car which is white slowly turns green + no wonder the competition 's green with envy the announcer says + ad notes + acquisition + <unk> formed by the merger of eurocom and della femina mcnamee wcrs said it agreed to buy <unk> an agency in <unk> + terms were n't disclosed + holiday ads + seagram will run two interactive ads in december magazines promoting its chivas <unk> and crown royal brands + the chivas ad illustrates via a series of <unk> the wild reactions from the pool man <unk> and others if not given chivas for christmas + the <unk> crown royal ad features a black-and-white shot of a boring holiday party and a set of <unk> <unk> with which readers can dress it up + both ads were designed by <unk> 's ddb needham agency + senate democrats who favor cutting the capital-gains tax are n't ready to line up behind the leading senate proposal + their reluctance to support the proposal is another blow to the capital-gains cut which has had a roller-coaster existence since the beginning of the year when it was considered dead and then suddenly revived and was passed by the house + nevertheless oregon sen. bob packwood the ranking gop member on the <unk> senate finance committee last night introduced his plan as an amendment to a pending measure <unk> u.s. aid for poland and hungary + senate majority leader george mitchell d. maine was confident he had enough votes to block the maneuver on procedural grounds perhaps as soon as today + mr. packwood all but conceded defeat telling mr. mitchell i sense at this stage you may have the votes + the two lawmakers <unk> in a highly personal fashion violating usual senate <unk> + their tone was <unk> with mr. packwood saying he intended to offer the proposal again and again on future legislation and sen. mitchell saying he intended to use procedural means to block it again and again + although the proposal <unk> by mr. packwood and sen. william roth r. del. appears to have general backing by republicans their votes are n't sufficient to pass it + and democrats who are under increasing pressure from their leaders to reject the <unk> cut are finding reasons to say no at least for now + a major reason is that they believe the <unk> plan would lose <unk> of revenue over the long run + the <unk> proposal would reduce the tax depending on how long an asset was held + it also would create a new individual retirement account that would shield from taxation the appreciation on investments made for a wide variety of purposes including retirement medical expenses <unk> purchases and tuition + a number of us are not going to touch capital gains iras or anything else unless it <unk> to deficit-reduction said sen. charles <unk> d. va. who is one of the N to N democrats who the bush administration believes might favor giving <unk> treatment to capital gains + president bush has been hearing this kind of opposition first hand during meetings over the past two days with democratic senators at the white house + and at a <unk> meeting tuesday of democratic senators there was outspoken opposition to cutting the capital-gains tax this year according to participants + the trend is making advocates of the tax cut less optimistic about success + there is a <unk> shot of getting it this year said sen. david boren of oklahoma a leading democratic <unk> of cutting the capital-gains tax + he called the battle <unk> + other democrats who favor a capital-gains cut are even more pessimistic + there will be no capital-gains bill this year said sen. dale <unk> d. ark + i 'm probably not going to vote for any capital-gains proposal + the ira portion of the <unk> plan is irresponsible + another significant factor in the <unk> debate is the extent to which it has become a <unk> political battle between president bush and senate majority leader mitchell + mr. mitchell has made clear to his <unk> colleagues that the issue is important to him personally + today sen. mitchell and other leading democrats plan to turn up the heat again by holding a news conference to <unk> the proposal + estimates requested by sen. mitchell from the congressional joint taxation committee show that the <unk> N taxpayers got an average benefit from the capital-gains <unk> of $ N million each in N the last year for which figures are available + white house officials acknowledged yesterday that democrats still are reluctant to publicly express support for the <unk> capital gains proposal because they are loath to buck sen. mitchell + as a result the officials said they are open to making a variety of deals with senate democrats to win their support for a capital-gains tax cut + democrats asked in this week for discussions with president bush have suggested ways of <unk> with the <unk> proposal suggesting an interest in looking for a modified version they can back one official said + in addition white house aides think that there are numerous other important measures democrats badly wanted passed such as the <unk> back of a controversial catastrophic health-care plan for the elderly that might provide the president leverage in cutting deals with democrats + a capital-gains tax cut might be <unk> with such measures to help ensure passage + other possibilities include a child-care initiative and an increase in the minimum wage + if they ca n't secure immediate passage of a capital-gains plan administration officials also are n't ruling out making a deal with congress to put off a vote until a firm date in the future even next year + but the officials insist that such a deal on a future vote would have to apply to both the house and the senate + gerald f. <unk> contributed to this article + japanese <unk> authorities said they found N more chinese among vietnamese boat people bringing the number of chinese trying to enter japan by <unk> as vietnamese refugees this year to N + japan plans to send the chinese back home and is negotiating with the chinese government a justice ministry official said + the chinese were among N boat people supposedly from vietnam who arrived in japan this year compared with N for all of N the official said + the N chinese who have been in a <unk> center were sent to <unk> facilities yesterday pending <unk> to china the official said + on sept. N japan began a policy of <unk> boat people accepting only those deemed to be political refugees + <unk> <unk> <unk> former deputy director of france 's mint faces prison for her theft of some N rare coins from the mint 's <unk> + second in command from N to N mrs. <unk> told a paris court that the great <unk> that <unk> at the agency led her into temptation + before an inventory in N that showed the disappearance of N coins valued at about N million french francs about $ N there had n't been any <unk> since N + tony lambert mrs. <unk> 's successor says the mint 's losses from the theft run into the hundreds of thousands of francs + el salvador is destroying more than N million pounds of food that had <unk> in government warehouses government officials said + the state supply regulator institute is to <unk> rice corn and <unk> that <unk> because of <unk> and corruption in the previous christian democrat government a statement from the information service <unk> said + during the past administration the <unk> were first bought by the institute then sold at low prices to unscrupulous businessmen who <unk> them to the institute at inflated prices the statement said + a <unk> cruise <unk> <unk> into <unk> yesterday bringing N <unk> threatening <unk> if italy refuses to pay compensation for more than N years of colonial rule + another N <unk> were already in italy to stage a day of <unk> for victims of italy 's colonial rule between N and N when <unk> says rome <unk> N <unk> and <unk> them as forced labor + libya 's revolutionary committees have threatened attacks on <unk> if rome does n't pay compensation + but officials in rome say the issue was legally resolved by a settlement between italy and king <unk> <unk> by col. <unk> <unk> in N + canadian indians are taking five countries to court in a bid to stop low military flights over their homes the dutch defense ministry said + representatives of the <unk> and <unk> peoples living in quebec and <unk> in <unk> canada told the ministry of the planned action at a meeting a ministry spokesman said + they also wanted to prevent a nato training base being built in the region he said + the action in the canadian federal court will be against canada the netherlands west germany britain and the u.s. the ministry spokesman said + japan suspended imports of french mushrooms after finding some <unk> by radiation an official of the ministry of health and welfare said + japan has been testing imported food from europe since the april N <unk> accident in the soviet union the spokesman said + since then the ministry has announced N bans on food imports from european countries including italy spain turkey greece and the soviet union + the venice city council is <unk> plans to tap huge gas fields off the coast that it says will speed up the city 's slow sinking into its <unk> + agip the state-owned energy giant made the announcement about the gas field last month + located six miles northeast of venice the field contains N billion cubic feet of <unk> gas <unk> of italy 's reserves + alarmed <unk> say the project could jeopardize costly efforts to stop or slow down the <unk> that makes venice subject to regular and <unk> flooding + the council unanimously opposed the idea of agip pumping out the <unk> gas and swiftly appealed to the company and to prime minister <unk> <unk> who has yet to <unk> + agip refused to reconsider and says drilling is due to start early next year + it 's unlikely <unk> the gas will cause <unk> says a spokeswoman + thieves <unk> a <unk> century <unk> from an abandoned church in <unk> italy by removing the entire wall on which the work had been painted police said + west germany 's <unk> commissioned the <unk> post office to test a prototype <unk> car + the vehicle has a top speed of N miles an hour and requires <unk> from a standard wall <unk> every N miles + total assets protection inc. rebounding from its earlier loss expects to report earnings from operations of about $ N for the third quarter j.c. <unk> chairman said + net income includes an extraordinary gain of about $ N from the reversal of bad debt and interest income + revenue was about $ N million + in the N third quarter the company posted a net loss of $ N or N cents a share on revenue of about $ N million + total assets plans and designs computer centers computer security systems and computer backup systems + regarding your oct. N page-one article bad blood on the <unk> battle the <unk> institute is not just a <unk> organization + it is primarily a certified <unk> treatment facility providing comprehensive services to people with <unk> and their families + the institute 's <unk> efforts are based on the needs of the population it serves and represents + in N the medical tribune reported that a growing number of critics are challenging the fda <unk> equation + they contend it is based on an assumption that has not yet been proven in valid tests the tribune said + in N some institute patients were reporting <unk> seizures when they were switched from a specific <unk> medication to a generic one or from one generic manufacturer of a specific product to another + in addition <unk> were beginning to report these <unk> as well + call it <unk> if you will + but no ethical physician would switch patients who were doing well on a specific medication from a specific manufacturer to prove a point + we do not depend on pharmaceutical companies for our support + the institute has <unk> service contracts for the provision of direct patient services <unk> patient fees receives money through contributions from individuals foundations and <unk> + the funds received from pharmaceutical firms are used to offset physician <unk> and these <unk> do not stress any particular medication or manufacturer + the <unk> institute 's reporting of <unk> seizures stemmed from concerns about the people we treat and care about daily + this perhaps was perceived as a bold stance and thus <unk> + but let us not <unk> profits of big business <unk> as concerns for people 's health care or for the cost + for whom is the saving + surely not to people with <unk> who depend on the same levels of medication in their <unk> daily to maintain seizure control + <unk> <unk> + executive director + arnold m. katz + parker <unk> corp. said it agreed to sell its three automotive parts divisions to a management-led investor group for $ N million + the buy-out group is headed by paul r. <unk> president of parker 's automotive group and includes several other executives of the three divisions + the units are the <unk> ideal and <unk> divisions + net sales for the units for the fiscal year ended june N were $ N million + parker officials said the company is selling the units to focus on its other businesses + a <unk> will <unk> next month on the <unk> strip a <unk> mountain <unk> smoke and <unk> every five minutes + the <unk> <unk> will tower over a <unk> <unk> with more than four acres of pools <unk> and <unk> + visitors <unk> from the strip on a moving <unk> will <unk> over a <unk> for rare white <unk> which will star in performances by the <unk> <unk> team of <unk> & roy + nearby six <unk> will <unk> in a N <unk> <unk> <unk> + at the core of all this stands a hotel + in the lobby behind its <unk> <unk> <unk> a <unk> <unk> will come alive with <unk> <unk> <unk> <unk> and other creatures of the deep + and oh yes + there 's a casino the financial heart of it all + this is the mirage a $ N million <unk> hotel-casino now being completed for opening in november by golden nugget inc + it 's the most stunning example of las vegas 's <unk> effort to transform itself into a <unk> vacation resort for families as well as <unk> + las vegas has seen nothing quite like it before + not for N years has a big new hotel-casino opened here + now the mirage and circus circus enterprises inc. 's $ N million <unk> are going up + the <unk> with a <unk> hotel <unk> <unk> and other <unk> <unk> will be able to handle up to N visitors a day when it opens in N + if mgm grand inc. proceeds with its plan for an <unk> park a $ N million <unk> resort with a working studio casino and <unk> hotel that would become las vegas 's biggest the investment in the three properties will total some $ N billion + mgm grand has agreed to buy a <unk> site for the resort for $ N million in cash plus stock currently valued at nearly $ N million + smaller projects swell the figure to at least $ N billion + still other projects that have been announced but not yet started could put expenditures above $ N billion over the next few years + stephen a. <unk> who owns N N of golden nugget 's shares says the mirage and other projects will help las vegas attract a whole new generation of visitors + if you create a <unk> if you create something so exciting that the public dreams of being part of it then they 'll come he says + the projects already under construction will increase las vegas 's supply of hotel rooms by N or nearly N N to N + by a rule of <unk> of N new jobs for each new hotel room clark county will have nearly N new jobs + the county at the end of N had N jobs N of them in the tourist industry + projects in the talking or blueprint stage would add a further N rooms + hotel-casino operators play down the possibility of a labor shortage + after all N newcomers a year are settling in the las vegas valley + but nevada state labor economists think a shortage is probable + nobody yet seems to have calculated the total number of <unk> machines <unk> tables or <unk> wheels las vegas will add to the enormous store that lady luck already guards here much less the ultimate impact of the growth on schools and municipal services + traffic is certainly a concern as is pollution water and an adequate labor market says frank <unk> executive director of the las vegas convention and visitors bureau + city <unk> have managed to push through projects that are crucial for tourist growth such as the expansion of <unk> international airport to accommodate the N N of las vegas tourists who fly here + this year by one means of transport or another more than N million people will visit the city + the expansion will set off a marketing war among the big <unk> + las vegas promises or threatens to become a giant carnival with rooms to be had for $ N a day or less for visitors <unk> solely by gambling + amid a <unk> of <unk> <unk> circus <unk> <unk> <unk> and creatures of the wild lesser competitors will fall + <unk> world inc. plans to defend its august reputation by sinking $ N million into its <unk> <unk> palace next door to the new mirage and adding a $ N million shopping area <unk> of <unk> drive + the palace with its marble <unk> and <unk> parties for high <unk> is already well-known for its <unk> theme + the <unk> hilton imperial palace <unk> and others are pouring millions of dollars into <unk> new room towers and casino floor space just to keep up + where 's this huge amount of investment capital coming from + golden nugget drexel burnham lambert inc. 's first casino client has borrowed on more than $ N million worth of mortgage notes mostly sold to private investors by drexel to build the mirage + other casino owners circus circus among them are financing their expansion with their own cash and revolving credit lines from local lenders such as first interstate bank of nevada + will the investments pay off + the growth of las vegas tourism in recent years <unk> lenders that they will + casino revenues and hotel <unk> rates are high + last year the tourists left $ N billion with the area 's casinos nearly N N more than in N + the people with a stake in nevada 's gambling industry believe that they have barely tapped the potentially huge family trade + if you build a better <unk> it will catch more mice says fred <unk> chairman of mgm grand + <unk> <unk> a tourist from <unk> ill. seems inclined to agree + i 'd love it if my daughter had something else to do here says ms. <unk> watching <unk> <unk> on the water slide at the strip 's <unk> <unk> wild water park + two generations ago <unk> came to las vegas by himself for a little diversion says van <unk> executive vice president of the nevada hotel and motel association + one generation ago mom joined <unk> + now in the <unk> we 're headed toward a total resort environment + only a decade or so ago casino managers balked at <unk> tv sets and other <unk> that <unk> from gambling + casinos today offer bowling <unk> water parks golf courses tennis courts <unk> <unk> pools and other <unk> and more such facilities are being designed + despite the new emphasis on the family trade however tourists in search of <unk> fun than gambling seem certain to find it with las vegas call <unk> remaining on the scene + a serious economic downturn <unk> <unk> could hurt the <unk> + for now however the <unk> ' voices are <unk> by the <unk> of cement <unk> and the <unk> of construction <unk> along the strip + this is no place for <unk> but at N on a recent morning when construction <unk> traffic at the famous four corners <unk> to one lane a taxi passenger found it faster to abandon the <unk> and walk to her <unk> + the <unk> competition probably will drive some poorly managed properties into bankruptcy or new ownership + it has happened before + the dunes the <unk> and the <unk> were all acquired by the present owners from bankruptcy proceedings spawned by the last recession in the early 1980s + yet that has n't discouraged investors + some have bought big chunks of strip property for what may turn into another wave of building + atlantic city casino owner donald trump is <unk> the las vegas market with an eye toward building an <unk> spectacular place + even before the huge new projects began the strip 's recent expansion squeezed smaller competitors + many blue-collar customers of downtown 's <unk> gambling spots have been <unk> to the strip or to <unk> nev. a colorado river town <unk> to <unk> and the <unk> crowd + hotel expansion and an influx of <unk> tourists have hurt <unk> + since N the number of motel rooms has fallen by N + many people here expect a <unk> war as the new projects open + there 's probably going to be some pressure on <unk> and room rates over the next year but after that you should see the market return to <unk> <unk> and regular rates says paul <unk> casino executive at ramada inc. which runs the <unk> + skeptics wonder whether <unk> such as the mirage will be able to squeeze a profit from their cash flow + the mirage will cost at least $ N million a day to operate + mr. <unk> seems confident that it will produce a healthy profit but some securities analysts doubt it + competitors and analysts say that among large existing properties bally manufacturing corp. 's bally grand hotel-casino probably will be hardest hit among major properties + bally officials decline to discuss the situation + bally bought the former mgm grand hotel-casino from kirk <unk> four years ago + only now is it <unk> a badly needed <unk> + its parking lot is <unk> the mgm <unk> <unk> still appears in places and customers still call it the grand rather than the bally grand + it has a great location but they 're going to have some real problems when everyone around them opens says daniel lee a drexel analyst + older properties that still have a 1950s image are also vulnerable + any hotel-casino without a strong identity will get <unk> by the new competition says glenn schaeffer senior vice president of circus circus + if you do n't know what you are bigger wo n't make you better he says + but it 'll sure make you poorer + circus circus 's flagship casino has become the envy of competitors for its ability to vacuum cash from the pockets of <unk> families + the circus circus <unk> them with low room rates <unk> <unk> and entertainment for children at no extra charge + the company 's <unk> will also appeal to families of course + its castle mr. schaeffer says will be the most compelling piece of folk architecture ever built + some casino owners have resisted the temptation to add rooms + instead they are spending to reinforce the identity that they believe attracts their customers + more rooms are n't the answer for us says <unk> world chairman henry <unk> + while his company 's hotel is building a retail complex in beverly hills style and <unk> existing rooms it has decreased the number of its rooms + some have been combined into suites for the high <unk> + <unk> has made a specialty of <unk> to high <unk> from abroad who are also being aggressively <unk> by the mirage the las vegas hilton and others + other smaller concerns are also pursuing market <unk> <unk> tourists for example or the local trade + there 's still room for <unk> properties says james barrett president of <unk> resorts inc + off the strip <unk> is building the <unk> a hotel-casino with a brazilian theme and only N rooms all of them suites + despite the proliferation of tourist <unk> las <unk> have n't <unk> that gambling is still what the town is all about + the days when when the thrust of casinos was all high <unk> with no windows and <unk> and lots of red and black <unk> are gone mr. <unk> of the visitors ' bureau says + but N N of tourists still come for gambling + we ca n't lose sight of that + north side savings bank directors declared an initial dividend of N cents a share payable dec. N to stock of record nov. N + the <unk> park n.y. thrift has a strong <unk> ratio said vice president michael <unk> <unk> + at sept. N the thrift which converted to a stock form of ownership from a mutual form in april N had more than four million shares outstanding + article i section N clause N + every bill which shall have passed the house of representatives and the senate shall before it becomes a law be presented to the president of the united states if he approve he shall sign it but if not he shall return it with his objections to that house in which it shall have <unk> who shall enter the objections at large on their journal and proceed to reconsider it + if after such <unk> two <unk> of that house shall agree to pass the bill it shall be sent together with the objections to the other house by which it shall likewise be <unk> and if approved by two <unk> of that house it shall become a law + article i section N clause N + every order resolution or vote to which the <unk> of the senate and house of representatives may be necessary except on a question of <unk> shall be presented to the president of the united states and before the same shall take effect shall be approved by him or being <unk> by him shall be <unk> by two <unk> of the senate and house of representatives according to the rules and limitations prescribed in the case of a bill + president bush told reporters a few months ago that he was looking for the right test case to see whether he already has the line-item veto + vice president quayle and budget director darman said recently they 've joined the search + on tuesday the subject came up again when marlin fitzwater explained the constitutional argument based on the provisions above to the white house press corps + president bush does n't have any provision in mind but <unk> <unk> will be like <unk> at midnight in the coming continuing resolution + the harder question is whether anyone yet understands that mr. bush 's fight for his constitutional prerogatives is about politics as much as it is about law + we have been persuaded by the constitutional argument for the inherent line-item veto since N when lawyer stephen <unk> first made the case on this page + the N budget reform passed over president nixon 's veto took away the presidential <unk> power thereby introducing <unk> <unk> and <unk> the presidential veto + mr. <unk> discovered that the <unk> had worried that congress might take the president out of the <unk> + article i section N clause N says that whether it 's called an order resolution or vote or anything else presidents must have the chance to veto + <unk> an omnibus budget a bill ca n't <unk> the president of his power to veto items + finding a test case should n't be hard but there is something to be said for picking the best one possible + the white house had the perfect case but congress <unk> before it could go to court + after the hud and s&l stories broke some congressmen began to worry that their influence peddling at <unk> and independent agencies might some day get them in trouble + they worried about an interior department <unk> to <unk> all communications with members or their staffs + congress inserted the following into the interior <unk> none of the funds available under this title may be used to prepare reports on contacts between employees of the <unk> of the interior and members and committees of congress and their staff + the white house warned that this would be an unconstitutional <unk> of its power + when it threatened to use this provision as the test for a line-item veto congress <unk> + the fear congress has of any <unk> test led members to add the single most <unk> and ridiculous provision this year this section shall be effective only on oct. N N + this means interior contacts can not be <unk> only on one day a sunday that had already passed + if the white house is looking for another unconstitutional bill rep. john dingell is trying again to raise the fairness doctrine from the dead + president reagan vetoed this as a first amendment violation + the fairness doctrine 's enthusiasts are <unk> in the house who know the rules <unk> <unk> discussions on <unk> <unk> <unk> <unk> + there are also other provisions requiring congressmen to join <unk> teams and new restrictions on <unk> + unconstitutional bills make good legal targets but the line-item veto is better understood as a political opportunity than as mere <unk> for lawyers + commenting on the budget mess this week president bush said the perception out there is that it 's the fault of congress + and you can look to the leadership and ask them why that is the perception of the american people + exactly right + now 's the time to make the political case that presidents need the line-item weapon to restore discipline to the budget + congress is in no position to <unk> mr. bush now that we 're into gramm-rudman 's <unk> + just this week the house-senate conference met N conferees divided into N different <unk> + senator daniel inouye agreed to close some bases in hawaii in exchange for such <unk> as $ N million for a parking lot at walter reed hospital + conference negotiator rep. bill <unk> pulled down $ N million in military bases for north carolina and <unk> allowed senator james <unk> $ N million for bases in tennessee + president bush should take the constitution in one hand and a budget <unk> in the other and get to work + he should <unk> out both unconstitutional provisions and budget pork + congress may have lost any sense of discipline but that does n't mean the country must learn to live forever with this mess + president bush has the power to change how washington works if only he will use it + troubled sci television inc. proposed to restructure much of its $ N billion in debt to buy time to sell assets and pay its obligations + the leveraged buy-out firm of kohlberg kravis roberts & co. which owns N N of the common equity of sci tv indicated in the debt plan that it would reduce its equity stake to N N giving the rest of its stake to bondholders in the restructuring + kkr also signaled to the company 's creditors that henry kravis and other kkr directors of sci tv would resign from the board once the restructuring is completed and <unk> their voting rights + holders of sci tv 's $ N million of high-yield junk bonds are being asked to <unk> a lot of debt in exchange for taking a N N equity stake in sci tv + they immediately termed the proposal inadequate and said the restructuring would not solve the company 's problems + i think the current plan is sufficiently flawed in a sufficient number of bondholders ' eyes that substantial revisions will be required to get it done says analyst craig davis of <unk> smith & co. here + investors interpreted the kkr move as a desire by the firm to wash its hands of sci tv + but a spokesman for kkr says that with only a N N equity stake it would n't be appropriate for kkr to keep board representation + kkr already has made about $ N billion of gains from earlier transactions with sci tv thus it is n't significantly affected by the company 's troubles + sci tv which is controlled by <unk> tenn. entrepreneur george gillett owns six tv stations including several cbs inc. affiliates + it is having trouble meeting its debt payments because of heavy borrowing in N for a leveraged buy-out + through investment banker drexel burnham lambert inc. sci tv is offering to exchange three classes of junk bonds for packages of new bonds and equity that investors value at ranges from N cents to N cents on the dollar + kkr would give up a N N equity stake to bondholders while mr. gillett would surrender an N N stake + while one big sci tv investor thinks that 's pretty generous many <unk> had been hoping that kkr and mr. gillett would invest new money in sci tv + those investors think sci tv needs new equity to survive + sci tv 's debt restructuring plan would defer payment of $ N million of bank debt + it also would defer interest and principal on junk bonds that have fallen due the grace period for paying the bill expires nov. N + at the same time investors estimate the restructuring would cut the company 's annual cash interest bill from about $ N million to $ N million + yet to pay that interest bill analysts say sci tv will only produce about $ N million to $ N million of cash flow a year + office market <unk> in overbuilt northeast + the northeast office market is feeling serious <unk> of the <unk> <unk> of the 1980s + <unk> and other signs of financial <unk> most often associated with the real estate market in the southwest are <unk> in the suburban office market of the once thriving northeast + some projects are now in the hands of lenders including a <unk> office facility in little falls n.j + the owners of a <unk> hotel and office complex in king of <unk> pa. have advertised for new financing + rising office vacancy rates in fairfield county conn. have builders and bankers scrambling to restructure loans + and in suburban boston developers are bracing for cutbacks in the computer industry a major user of office space + many troubled properties have n't been foreclosed on and are hard to identify says albert i. <unk> who heads the <unk> n.j. office of <unk> inc. a real estate brokerage + owners are voluntarily and quietly turning over properties to lenders through <unk> in <unk> of <unk> + often developers stay on as property manager + real estate analyst lloyd <unk> says the northeast 's <unk> is <unk> by relatively low vacancy rates + but in today 's overbuilt market tenants have many choices and are negotiating low <unk> that squeeze building owners + on average mr. <unk> says it now takes three to N N years to fill new office space compared with N N years in N + beverly hills comes to suburban tokyo + why should the japanese cross the pacific to buy american real estate when they can simply <unk> it at home + tokyu development corp. is spending $ N million to build <unk> luxury homes in suburban tokyo with rarely seen back yards front yards <unk> pools and tennis courts + the japanese company hired <unk> <unk> martin a newport beach calif. architectural firm to design what the japanese press has dubbed the beverly hills of tokyo + instead of japan 's typical small homes <unk> on narrow streets with no <unk> the new one hundred hills development will offer N houses on <unk> lots + that 's more than N times the usual housing site size + buyers with $ N million to spend can select from N designs including a <unk> california style a traditional yankee look and designs inspired by midwestern architect frank lloyd wright + there are <unk> living rooms and <unk> plus a master <unk> <unk> and a <unk> for removing shoes to suit japanese life styles + <unk> are faced with brick wood or stone but the homes are made of <unk> concrete + we were disappointed we could n't use wood says architect walter j. <unk> but the japanese only want stronger materials + at $ N per square foot the japanese want the feeling of <unk> he explains not to mention protection from possible earthquake damage + housing developers try <unk> buildings + residential builders faced with a more competitive market are turning to a traditional consumer marketing technique to establish <unk> identity + one of the difficulties people in real estate have is that each product is like starting a new company or starting a new line in the fashion business says l. robert <unk> president of mountain development corp. in west paterson n.j + so he 's using river in many project names + it 'll never be like what bristol-myers does he adds but it helps establish recognition with the public and with banks + <unk> group inc. of <unk> n.j. has built cross creek <unk> <unk> <unk> and other <unk> in new jersey + <unk> development corp of armonk n.y. has developed two apartment buildings called classic and plans a third + developer steve <unk> says the same brand name indicates consistent quality regardless of location design or <unk> + the leader in real estate brand names is developer <unk> <unk> + his <unk> <unk> are labeled society hill + <unk> hill is for <unk> town houses and <unk> hill for single-family houses + because of standardized designs mr. <unk> says a buyer can <unk> society hill regardless of where it is + quake not likely to jolt the commercial market + the earthquake in san francisco has sent few tremors through the hearts of real estate investors + i think there 's a disease called buyer 's regret and i 'm sure it 's running rampant at this moment but it gets <unk> in a short period of time says kenneth leventhal <unk> partner of kenneth leventhal & co. a los angeles accounting firm specializing in real estate + if i were buying a building in san francisco now the first thing i 'd do is insist on a structural inspection then i 'd delay a little <unk> a little + but like other real estate professionals accustomed to california 's quake risks mr. leventhal anticipates little long-term change in the city 's commercial real estate market + still local builders are eager to tell the world that most of san francisco does n't look like the tv images of destruction + planners of the urban land institute real estate conference this week hastily added a panel on the quake 's effects + the message is we build <unk> right says peter <unk> a california developer and officer at urban land institute + there 's seven million square feet of space that 's doing great + health clubs gear up for a <unk> <unk> + although their ads picture <unk> young people in <unk> <unk> club owners know the future lies with the <unk> <unk> set + it 's a <unk> that physical fitness is something for the young and <unk> says michael <unk> sales manager of the la fitness club diamond bar calif + about N N to N N of members at atlanta 's holiday <unk> center are elderly says gerald williams fitness consultant + most want cardiovascular <unk> the no. N way of reducing risk of heart disease + the association of quality clubs which puts N industry revenue at $ N billion surveyed the <unk> <unk> market and found that N N exercise regularly + michael <unk> head of <unk> fitness notes an industry wash is in progress + clubs need to be run like restaurants where every square foot makes a dollar he says + older people help profits by filling in <unk> + he adds the medical market and the fitness market parallel each other and are going to cross real soon + people on fixed incomes get a break at <unk> over N wins a N N discount at <unk> imperial health <unk> + hot <unk> <unk> regulator <unk> concern over import of <unk> stones + a committee of <unk> dealers <unk> the source of some hot blue <unk> stones recently reported by a hong kong jewelry manufacturer + in the u.s. radiation limits are set and monitored by the nuclear regulatory commission which licenses <unk> that process the <unk> + the agency is working on licensing <unk> but does n't currently monitor imports + <unk> a <unk> mineral that is often <unk> when taken from the ground can be turned blue by <unk> which <unk> it into a <unk> that looks like an <unk> + the stones that were <unk> in the u.s. are safe says john <unk> chief of the <unk> operations branch washington + we believe that the vast majority of imported material is safe + but there is a small risk that some were imported with high radiation levels + mr. <unk> added that the stones found in hong kong are thought to carry double the u.s. radiation limit although he noted that double or even triple the u.s. limit is still in the range of safe levels + some jewelers have <unk> <unk> to measure <unk> radiation + capital <unk> to europe as N unification <unk> + boston 's advent international raises $ N million from u.s. pension funds and other institutions to invest in europe + other venture capitalists are already there <unk> <unk> group and its alan <unk> associates new york <unk> <unk> <unk> & co. boston and san francisco 's hambrecht & quist have about $ N million to invest in european companies + european venture capital funds total about $ N billion and are expected to continue growing N N annually + <unk> believe that the strongest growth area will be southern europe + spain and italy are most often mentioned as the future economic hot spots + favored ventures include media telecommunications and retailing + most popular acquisition method the leveraged buy-out + <unk> firms that need cash to grow are attractive says john turner of <unk> <unk> <unk> + an aids <unk> from the american foundation for aids research rates and reviews educational materials + learning aids lists films <unk> <unk> <unk> and other educational data + the distributor is <unk> <unk> new york + suspect sales ads are challenged by the better business bureau of metropolitan new york + the bureau found that only two of six new york furniture stores could prove their <unk> prices were higher + <unk> 's busy this time of year but a visit to his <unk> castle is part of a chicago-based <unk> trip in the spring presumably the count 's <unk> + radio <unk> draws the <unk> of the federal communications commission + am radio which has been losing <unk> to fm channels since the 1970s approaches the 1990s with a diminished voice + but it may have a good <unk> in washington + the fcc plans to hear a day of testimony nov. N on the plight of am radio + the commission believes that improving am service would broaden listening <unk> and increase options for advertisers + the issues are also thought to be important to the fcc 's new chairman alfred <unk> a former am <unk> in his native missouri + the fm radio band considered technically superior because it can carry stereo <unk> has <unk> the <unk> for delivering music + am stereo remains largely undeveloped because it lacks a uniform delivery system + the national association of broadcasters in june adopted an agenda for <unk> am radio that includes among other things pursuing further fcc action on <unk> an am stereo standard and seeking a law requiring all stereo <unk> to include am stereo + <unk> turned to <unk> run on <unk> for news when the san francisco earthquake and hurricane hugo cut power lines + briefs + a modern healthcare magazine article says N N of surveyed executives admitted falling <unk> during formal <unk> + lee co. the jeans maker <unk> its <unk> anniversary with a <unk> <unk> featuring photos of its N employees + kemper financial services inc. charging that program trading is <unk> the stock market cut off four big wall street firms from doing any of its <unk> business + the move is the biggest <unk> yet in the renewed outcry against program trading with kemper putting its money the millions of dollars in commissions it generates each year where its mouth is + the kemper corp. unit and other critics complain that program trading causes wild swings in stock prices such as on tuesday and on oct. N and N and has increased chances for market crashes + over the past nine months several firms including discount broker charles schwab & co. and sears roebuck & co. 's dean witter reynolds inc. unit have attacked program trading as a major market evil + several big securities firms backed off from program trading a few months after the N crash + but most of them led by morgan stanley & co. moved back in earlier this year + the most volatile form of program trading is index arbitrage the <unk> computer-guided buying and selling of stocks offset with opposite trades in stock-index futures and options + the object is to capture profits from fleeting price discrepancies between the futures and options and the stocks themselves + index arbitrage recently has accounted for about half of all program trading on the new york stock exchange + last month program trading accounted for N million shares a day or a record N N of the big board 's average daily volume + on tuesday afternoon kemper told bear stearns & co. general electric co. 's kidder peabody & co. unit morgan stanley and oppenheimer & co. that it will no longer do business with them because of their commitment to index arbitrage officials inside and outside these firms confirmed + kemper officials declined to identify the firms but acknowledged a <unk> dispute with four securities firms and said the list of brokers it wo n't do business with may be <unk> in the months ahead + we 've been opposed to index arbitrage for a long time said stephen b. <unk> chief investment officer at kemper which manages $ N billion including $ N billion of stocks + index arbitrage does n't work and it <unk> natural buyers of stock + while mr. <unk> explained he 's not totally convinced index arbitrage changes the overall level of the stock market he said that on an intraday basis it has major effects + we 've talked to proponents of index arbitrage and told them to cool it because they 're <unk> the market + they said too bad so we finally said we 're not going to do business with them + kemper also <unk> the big board for ignoring the interests of individual and institutional holders + the new york stock exchange has vested interests in its big member securities firms that cloud its <unk> mr. <unk> said + it has never been interested in what we think + the big board also has a terrible communication problem with individual investors he added + small investors <unk> that big operators dominate the market said thomas <unk> chairman of the national association of investors and head of the exchange 's individual investors advisory committee set up after the N crash + the impression i 've got is they 'd love to do away with it program trading but they the exchange ca n't do it he said + big board chairman john j. phelan said in a recent interview that he has no <unk> to eliminate program trading + he said the market 's volatility <unk> him but that all the exchange can do is slow down the process by using its circuit breakers and shock <unk> + mr. <unk> <unk> that the mere fact they put in circuit breakers is an admission of their problems + morgan stanley and kidder peabody the two biggest program trading firms <unk> defend their strategies + we continue to believe the position we 've taken is reasonable a morgan stanley official said + we would stop index arbitrage when the market is under stress and we have recently he said citing oct. N and earlier this week + michael carpenter president and chief executive officer at kidder peabody said in a recent interview we do n't think that index arbitrage has a negative impact on the market as a whole + according to lawrence <unk> a securities industry analyst at prudential-bache securities inc. kemper is the first firm to make a major statement with program trading + he added that having just one firm do this is n't going to mean a hill of <unk> + but if this <unk> others to consider the same thing then it may become much more important + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + blockbuster entertainment corp. $ N million redemption amount of zero-coupon convertible notes also known as liquid yield option notes due nov. N N priced at N to yield at maturity N N + the notes are zero-coupon securities and will not pay interest <unk> + the size of the offering was increased from the originally planned $ N million redemption amount + the notes are convertible into common stock of blockbuster entertainment at $ N a share representing a N N conversion premium over yesterday 's closing price + rated <unk> by moody 's investors service inc. and <unk> by standard & poor 's corp. the issue will be sold through merrill lynch capital markets + merrill lynch & co. $ N million of N N notes due nov. N N priced at N to yield N N + the issue which is <unk> back to the company nov. N N was priced at a spread of N basis points above the treasury 's five-year note + rated single-a-1 by moody 's and <unk> by s&p the noncallable issue will be sold through underwriters led by merrill lynch capital markets + <unk> cascade corp. $ N million of N N debentures due N priced at N + itt financial corp. $ N million of N N subordinated notes due nov. N N priced at N to yield N N + the noncallable issue which is <unk> back to the company nov. N N was priced at a spread of N basis points above the treasury 's five-year note + rated single-a-2 by moody 's and single-a by s&p the issue will be sold through underwriters led by merrill lynch capital markets + itt financial is a subsidiary of itt corp + arco chemical co. $ N million of N N debentures due nov. N N priced at N to yield N N + rated single-a-2 by moody 's and single-a by s&p the issue will be sold through underwriters led by salomon brothers inc + trinity river authority texas $ N million of regional wastewater system improvement revenue bonds series N due N N and N through a shearson lehman hutton inc. group + the bonds insured and rated triple-a by moody 's and s&p were priced to yield from N N in N to N N in N + there are $ N of N N term bonds due N priced at N N to yield N N and $ N million of N N term bonds due N priced at N N to yield N N + serial bonds which all carry N N coupons are priced to yield from N N in N to N N in N + beverly hills calif. $ N of refunding certificates of participation civic center improvements project due N N N and N tentatively priced by a goldman sachs & co. group to yield from N N in N to N N in N + serial certificates yield to N N in N + they are all priced at par + there are $ N of N N term certificates due N priced to yield N N + the $ N million of N N certificates due N carry the issue 's high yield priced at N N to yield N N + there are also $ N million of N N N certificates due N priced to yield N N + the bonds are rated single-a-1 by moody 's and <unk> by s&p according to the lead underwriter + michigan $ N million of first general obligation bonds series N environmental protection program and recreation program tentatively priced by a shearson lehman hutton group to yield from N N for current interest bonds due N to N N for convertible capital appreciation bonds + environmental protection program current interest bonds are due N N and N + they are tentatively priced to yield from N N in N to N N in N + the standard capital appreciation bonds in the issue due N yield to maturity from N N in N to N N in N + the convertible capital appreciation bonds all yield N N to their respective conversion dates when they become N N N current <unk> bonds until maturity + convertible capital appreciation bonds with a final stated maturity of nov. N N convert nov. N N + convertible capital appreciation bonds with a final stated maturity of nov. N N convert nov. N N + recreation program current interest bonds are due N and are priced to yield from N N in N to N N in N + all of the bonds are rated single-a-1 by moody 's and double-a by s&p + federal national mortgage association $ N million of remic securities in N classes through goldman sachs + the issue is backed by fannie mae N N <unk> + the offering is fannie mae 's series N + fuji heavy industries ltd japan $ N million of N N N bonds due nov. N N priced at N N to yield N N less full fees annually via daiwa europe ltd + guarantee by industrial bank of japan + fees N + european investment bank agency $ N million of N N N bonds due nov. N N priced at N to yield N N at reoffered price via lead manager <unk> morgan securities ltd + nippon meat <unk> inc japan $ N million of bonds due nov. N N with equity-purchase warrants indicating a N N N coupon at par via yamaichi international europe + each $ N bond carries a warrant exercisable nov. N N through oct. N N to buy company shares at an expected premium of N N N to the closing share price when terms are fixed oct. N + gmac canada ltd u.s. parent N million canadian dollars of floating-rate notes due november N via banque paribas capital markets ltd + coupon paid monthly is <unk> canadian bankers acceptance rate + guarantee by general motors acceptance corp + call at par after two years and thereafter at par every six months + swedish export credit corp. # N million of N N bonds due june N N priced at N N to yield N N annually less full fees via samuel <unk> & co + fees N N + <unk> finland N billion yen of N N N bonds due nov. N N priced at N N to yield N N N less full fees via <unk> international + fees N N + <unk> <unk> bank japan N million swiss francs of notes and bonds due march N N with fixed N N coupon at par via swiss bank corp + put option march N N at N N to yield a fixed N N + the issue is in two parts N million swiss francs of privately placed notes N million swiss francs of publicly listed bonds + <unk> conditions for the two parts + other terms to be fixed nov. N + kingdom of <unk> $ N million redemption amount of zero-coupon government trust certificates with maturities stretching from may N N to nov. N N priced at yields ranging from N N to N N + all the issues were priced at a spread of N basis points above the treasury strips with similar maturities + proceeds from the offering are about $ N million + rated triple-a by moody 's and s&p the issue will be sold through underwriters led by <unk> securities a subsidiary of bankers trust new york corp + at a time when jon levy should be planning the biggest spring season in his dress company 's N years his work day is <unk> with intense moments of concern about one of his biggest customers campeau corp + the dress business has always been a gamble but it 's never been like this says mr. levy president of st. <unk> group ltd. which has become a hot name thanks to a campaign of <unk> tv commercials + every day mr. levy checks orders from campeau department store chains trying to guess if he will be paid + i 'm now monitoring every major account + campeau owner of such retailers as bloomingdale 's <unk> <unk> and jordan marsh <unk> financial collapse last month after an emergency $ N million loan from olympia & york developments ltd. a canadian developer and a major shareholder in campeau + the need for the loan surprised many analysts and bond holders who had been told at the company 's annual meeting in july that there were n't any major problems ahead + the risk of doing business with campeau 's federated and allied department store chains is about to increase greatly not only for mr. levy but for hundreds of other small apparel makers <unk> suppliers trucking firms and fabric houses + next week the country 's top designers and manufacturers will begin showing <unk> for spring N the second most important selling season of the year + and as the applause dies down in <unk> along seventh avenue and broadway <unk> <unk> campeau buyers will begin writing orders + orders from campeau retailers used to be cause for celebration + this is no longer true because of campeau 's massive debt load + it 's all anybody wants to talk about says richard posner executive vice president for credit exchange inc. a leading credit service + people wonder what 's going to happen next + many manufacturers are worried about being paid for merchandise already shipped to campeau stores + but those dollars at risk pale in comparison to the investment required to make and ship spring goods to campeau stores + the few million dollars i could lose today is nothing against what i could lose on the spring line says mr. levy who estimates that campeau stores will sell $ N million worth of his clothes this year + i 'm buying fabric right now for clothes which i may not be paid for until april or may + what happens to me if campeau <unk> between now and then + some credit concerns such as bernard <unk> credit consultants inc. have told clients not to ship anything to federated or allied stores on credit + this is especially true for spring merchandise says jim <unk> credit manager at bernard <unk> + campeau has too much debt + other credit houses such as credit exchange and solo credit service corp. are suggesting that their clients study each order before shipping + payments are good right now but we are n't recommending any long-term lines of credit says richard hastings a retail credit analyst referring to credit lines which make inventory purchases automatic + the campeau situation is a little uncertain and very difficult to analyze + because of those concerns some manufacturers say they will ask for letters of credit before shipping spring merchandise + we 're being paid today but we 're worried about tomorrow and will want letters of credit says the sales director at one major dress maker who asked not to be identified + howard <unk> president of the dress firm <unk> b inc. says it 's big time chaos today + i 'm going to ship and hope i get paid + if i need to ask for money up front later i will + carol <unk> vice president corporate communications at campeau says that all of the federated and allied chains are paying their bills in a timely manner + they continue to pay their bills and will do so says ms. <unk> + we 're confident we 'll be paying our bills for spring merchandise as well + typically manufacturers are paid N days after the month in which they ship + if goods are shipped to bloomingdale 's between oct. N and oct. N manufacturers expect to be paid by nov. N + but manufacturers now buying fabric for spring season goods wo n't be paid until march april or even may + some in the market question whether campeau will be in a position to pay bills at that time + everybody is worried about the possibility of <unk> says kurt <unk> publisher of <unk> 's retail marketing report + the buyers who work for the various campeau chains may lose their jobs + the stores they work for may be sold + what that will mean for manufacturers is anybody 's guess + campeau 's financial situation is complicated by an estimated $ N billion in debt due next spring + this includes a working capital facility for allied stores of $ N million that <unk> march N N and an $ N million bridge loan due april N N + the company has stated in recently filed financial documents that it anticipates refinancing its march N payments + in recent months numerous retailers have filed for chapter N bankruptcy protection including <unk> teller b. altman & co. and miller & <unk> inc + those filings plus the expected sale of a number of financially healthy chains such as saks fifth avenue marshall field 's and bloomingdale 's have added to the anxiety + right now federated owes us a considerable amount of money says morris <unk> president of david warren enterprises a major dress manufacturer + we expect they will be current with their debts by the end of the week but we are considering asking them for letters of credit before we take more orders + mr. <unk> adds that his company is now holding some goods in anticipation of being paid in full + it 's become a <unk> business he says + business has never been this tough before + not only does your product have to be excellent but you also have to be able to collect + other manufacturers are equally cautious + <unk> <unk> president of <unk> miller inc. says his company is now shipping only to the flagship stores of the federated and allied chains + this limits his financial exposure he says + the branches are just <unk> over empty halls says mr. <unk> + why should i be part of that problem + i 've got limited production and i ca n't give it to <unk> + campeau 's ms. <unk> disputes mr. <unk> 's comments + many of the branches are very lucrative she says + that 's just nonsense + as for mr. levy at st. <unk> he says he will maintain his credit lines with the various campeau stores unless they miss a payment + if they slip for N cents for N minutes i 'll stop he says + bethlehem steel corp. <unk> by higher costs and lower shipments to key automotive and <unk> customers posted a N N drop in third-quarter profit + separately two more of the nation 's top steelmakers armco inc. and national intergroup inc. reported lower operating earnings in their steel businesses marking what is generally believed to be the end of a two-year boom in the industry + wall street analysts expect the disappointing trend to continue into the fourth quarter and through at least the first two quarters of N when the industry will increasingly see the effect of price erosion in major product lines such as rolled sheet used for cars appliances and construction + it does n't <unk> well for coming quarters said john jacobson who follows the steel industry for <unk> consultants + in fact he thinks several steelmakers will report actual losses through the third quarter of N + bethlehem the nation 's second largest steelmaker earned $ N million or N cents a share + the figures include $ N million in costs related to a blast <unk> <unk> and $ N million in losses from unauthorized work <unk> at the company 's coal operations + in the year-ago period bethlehem earned $ N million or $ N a share including a $ N million gain from early retirement of debt + third-quarter sales dropped N N to $ N billion from $ N billion a year ago + in composite trading on the new york stock exchange bethlehem shares rose N cents to $ N + of all the major steelmakers bethlehem would seem to be the most vulnerable to a slowdown + it has n't diversified beyond steel nor has it linked up with a joint venture partner to share costs and risks + however in spite of the difficult industrywide environment of high cost and low volume bethlehem had pretty good earnings numbers said <unk> <unk> <unk> an analyst with salomon brothers inc + ms. <unk> had estimated third-quarter earnings of N cents a share but said the losses for the unusual items were larger than expected + still bethlehem 's core basic steel operations experienced a steep drop in operating profit to $ N million from $ N million a year ago when the industry enjoyed strong demand and pricing + the company said its shipments declined as a result of a reduction in inventories by service centers a lackluster automotive market and increasing competitive pressures in the construction market + at the same time production costs compared with a year ago were boosted by higher raw material and employment costs which resulted from the company 's new labor pact effective june N + we anticipate that steel market conditions will exhibit a further moderate decline in the fourth quarter as the automotive sector remains weak and customers continue to adjust inventories said bethlehem chairman walter f. williams + he noted however that the company 's order entry has increased from the low levels of the early summer following the end of labor negotiations + armco hampered by lower volume in its specialty steel business said third-quarter net income dropped N N to $ N million or N cents a share from $ N million or N cents a share in the year-ago quarter + sales dropped to $ N million from $ N million because the company no longer <unk> its eastern steel division which is now a joint venture with <unk> steel corp + along with reduced volume analysts said the nation 's fifth largest steelmaker was hurt by holding <unk> inventory when raw material costs of such key products as nickel dropped + operating profit dropped N N in its specialty flat-rolled steel segment + moreover the company said higher sales and shipments to service centers from its armco steel co. joint venture failed to offset weakness in the automotive market higher production costs and a poorer product mix + armco shares closed unchanged at $ N in composite trading on the new york stock exchange + national intergroup which owns N N of the nation 's sixth largest steelmaker national steel corp. posted net income for the fiscal second-quarter of $ N million or N cents a share compared with a net loss of $ N million + sales increased in the quarter ended sept. N to $ N million from $ N million a year ago + the latest period includes gains of $ N million from early retirement of debt and tax loss carry-forward + last year 's results were hurt by $ N million in restructuring charges + national intergroup stock closed at $ N unchanged in composite trading on the new york stock exchange + the company noted that its <unk> drug co. ben franklin stores inc. and <unk> corp. operations showed improvements as a result of restructuring moves + however its equity in the net income of national steel declined to $ N million from $ N million as a result of softer demand and lost orders following prolonged labor talks and a threatened strike + national intergroup is negotiating for the sale of its N N interest in national steel to concentrate more fully on drug distribution operations + international business machines corp. said it agreed to let motorola inc. participate in a semiconductor research project as part of its effort to bolster the u.s. semiconductor industry + ibm which made the announcement at the <unk> of a research center here said it invited many other companies to participate as well including some from europe + jack <unk> ibm 's president said ibm is also considering letting other companies participate in additional semiconductor work but declined to be more specific + ibm which said a year ago it was inviting companies to participate in some semiconductor work has become far more open about its technology as it has tried to rally u.s. industry to head off the japanese who now dominate the market for dynamic random access memory chips + while ibm armonk n.y. makes the bulk of the <unk> it uses it does n't make the equipment needed to produce those chips + and ibm worries that the japanese will take over that equipment market too unless u.s. semiconductor companies produce enough memory chips here to keep u.s. equipment makers healthy + failure of u.s. equipment makers ibm fears would leave it dependent on many of the japanese companies that compete with it in other parts of the market + ibm also said it expects to benefit from the expertise that motorola and other companies can bring to bear on the difficult problems involved in semiconductor manufacturing + ibm already <unk> in one industrywide effort to improve <unk> techniques + ibm said it expects industrywide efforts to become <unk> because semiconductor manufacturing has become so expensive + a <unk> plant cost $ N million in the mid-1970s but costs $ N million today because the technology is so complex + and ibm said it expects the costs to continue climbing + ibm which said motorola is paying just a nominal fee to cover the <unk> agreement acknowledged some companies had turned down its invitation to join in + but it said that was mainly because the project may not bear fruit until the mid-1990s + ibm said it thought more companies would become interested as the project <unk> + the project involving motorola concerns a technique called <unk> <unk> that figures to be crucial to future generations of memory chips + currently chips are produced by <unk> light through a <unk> to produce an image on the chip much as a camera produces an image on film + but details on chips must now be extraordinarily fine and the <unk> of even <unk> light are long enough so that the images they draw may be too <unk> much as someone using a wide <unk> could produce a broad line but would have trouble painting a thin one + <unk> by contrast travel <unk> and can be focused more tightly than light + <unk> have problems too + they can make the <unk> <unk> and can pass through material they 're not supposed to + but assuming those problems can be overcome they should allow for memory chips that could approach one billion <unk> of information N times as much as is contained in the <unk> chips that are just reaching the market and a million times what was possible in the mid-1970s + allied-signal aerospace co. received a $ N million contract to outfit continental airlines ' N planes with the <unk> traffic alert and <unk> <unk> system + the <unk> system operates independent of <unk> radar systems <unk> pilots of nearby aircraft allied-signal said + the system also provides <unk> <unk> + allied-signal is a unit of allied-signal inc. a manufacturer with interests in aerospace automotive products and engineered materials + continental airlines is a unit of texas air corp. houston + in a stunning shift in direction provigo inc. said it will sell all its non-food operations to concentrate solely on its retail and wholesale grocery business + the non-food operations accounted for about N N of provigo 's N billion canadian dollars us$ N billion in sales in the latest fiscal year + in a related move pierre lortie chairman and chief executive resigned + mr. lortie joined provigo in N and <unk> the company 's drive to grow outside its traditional food business + he could n't be reached for comment + <unk> nadeau newly appointed chairman and interim chief executive of provigo would n't say if mr. lortie was asked to leave + mr. lortie felt less <unk> mr. nadeau said given the decision to dump provigo 's non-food operations + at this stage it was felt i was perhaps more <unk> as chief executive + mr. nadeau also is chairman and chief executive of <unk> inc. provigo 's controlling shareholder + at a news conference mr. nadeau said the sale of the three non-food businesses which account for nearly half the company 's c$ N million in assets should be completed in a matter of months + the three units are a nationwide pharmaceutical and <unk> distributor a small <unk> chain and a combination catalog showroom and <unk> chain + investors and analysts <unk> the news + provigo was the most active industrial stock on the montreal exchange where it closed at c$ N us$ N up N canadian cents + i think it 's a pretty positive development said ross <unk> a financial analyst with <unk> <unk> <unk> inc. of the decision to concentrate on <unk> + mr. lortie 's departure while sudden was seen as inevitable in light of the shift in strategy + the non-food operations were largely mr. lortie 's creation and his strategy did n't work said steven holt a financial analyst with midland <unk> ltd + provigo 's profit record over the past two years <unk> the company 's and mr. lortie 's <unk> + for the six months ended aug. N provigo posted net income of c$ N million or eight canadian cents a share compared with c$ N million or N canadian cents a share a year earlier + sales were c$ N billion compared with c$ N billion + last month canadian bond rating service downgraded provigo 's commercial paper and debentures because of its lackluster performance + analysts are skeptical provigo will be able to sell the non-food businesses as a group for at least book value and are expecting write-downs + mr. nadeau said he could n't yet say if the sale prices would match book values + he said all three non-food operations are profitable + mr. nadeau said discussions are under way with potential purchasers of each of the units + he declined to confirm or deny reports that provigo executive <unk> roy is trying to put together a management buy-out of the <unk> showroom unit + mr. roy could n't be reached + <unk> <unk> was named senior executive vice president and chief operating officer of provigo a new position + mr. <unk> was president and chief operating officer of provigo 's quebec retail and wholesale grocery unit + mr. nadeau said he intends to remain provigo 's chief executive only until the non-food businesses are sold after a which a new chief executive will be named + comments by federal reserve board chairman alan greenspan lent some support to the dollar but the u.s. unit ended yesterday lower against most major currencies + foreign-exchange dealers noted that the impact of the chairman 's remarks was slight and warned that the currency remains sensitive to developments on wall street + traders said that mr. greenspan whose statements are ordinarily cautious was especially careful to avoid any <unk> <unk> with fears about equities still <unk> financial markets + <unk> before a panel of the house banking committee mr. greenspan said the short-term value of the dollar on foreign-exchange markets is n't the primary policy focus of the central bank + our essential focus is on domestic policy mr. greenspan said referring to the goals of price stability and a stable economy + in perhaps his most telling remark mr. greenspan termed the current u.s. inflation rate of around N N as much too high to be ignored + he added however that inflation could be brought down close to zero without throwing the economy into a recession + analysts viewed the chairman 's comments as an indication that the central bank is <unk> to ease monetary policy further in the near future + the dollar climbed immediately higher on news of mr. greenspan 's testimony settling lower in later trade as dealers <unk> positions ahead of today 's preliminary report on third-quarter u.s. gross national product + in late new york trading yesterday the dollar was quoted at N marks down from N marks tuesday and at N yen up from N yen late tuesday + sterling was quoted at $ N up from $ N late tuesday + in tokyo thursday the u.s. currency opened for trading at N yen up from wednesday 's tokyo close of N yen + many traders forecast a <unk> of the market 's recent bearish trend and predict the u.s. currency will remain stuck in its relatively narrow ranges in the near term and then shift lower + but according to doug madison a corporate trader with bank of america in los angeles a large number of short positions must first be corrected spurring a temporary <unk> before the unit can turn lower + he predicts a downward move in <unk> trade and a less dramatic slip in <unk> noting that there continues to be a large pool of japanese investor interest in u.s. securities which could provide a solid base for the dollar at around N yen + market participants hope today 's gnp report will offer more substantial evidence on u.s. economic growth although analysts are quick to point out that the figures may <unk> the economy 's <unk> + the r word is looming again says one dealer referring to persistent concern among some market analysts that the u.s. economy is heading toward a major slowdown if not a recession + some dealers note that while the third-quarter figures may appear relatively bullish the market consensus calls for a N N annual growth rate unchanged from the second-quarter rate it would take a significantly stronger figure to alter market perceptions that the economy is softening + some analysts <unk> that the next quarter 's figures will present a more accurate picture of the u.s. economy showing a marked slowdown in a number of sectors including housing starts and equities + on the commodity exchange in new york gold for current delivery settled at $ N an ounce down $ N + estimated volume was a light N million ounces + in early trading in hong kong thursday gold was quoted at $ N an ounce + lawrence insurance group inc. said it acquired united republic reinsurance co. a houston property and casualty reinsurance company from united savings association of texas for $ N million + lawrence insurance also sold N million of its shares for $ N each to its parent lawrence group inc + lawrence insurance based in albany n.y. plans to use the $ N million in proceeds to help finance the acquisition of united republic + by acquiring the shares lawrence group increased its stake in lawrence insurance to N N from N N + lawrence insurance <unk> mostly primary insurance a company spokesman said + a reinsurance company effectively <unk> insurance companies that wish to spread the risk of a particular policy + lawrence group also owns lawrence agency corp. <unk> n.y. an insurance agency and brokerage + <unk> <unk> associates inc. the closely held owner of <unk> <unk> & co. said its fiscal third-quarter earnings jumped to $ N million from $ N million a year earlier aided by a $ N million gain from the sale of stock in a japanese subsidiary + the apparel holding company had sales in the quarter ended aug. N of $ N billion up N N from $ N million a year ago + the company said its quarterly results are now being publicly filed as the result of the formation earlier this year of employee stock investment plans + wall street would like ual corp. 's board to change its mind about keeping the company independent + but what happens next in the continuing takeover drama may depend more on the company 's two most powerful and <unk> unions the pilots and machinists + some people familiar with the situation believe that the collapse of the previous $ N billion buy-out if anything may have strengthened the hands of these two labor groups + as a result both may now have <unk> veto power over any ual transaction + one reason banks likely to react to any new ual deal with even more caution than the first time around probably will insist on labor harmony before they agree to put up cash for any new bid or even a <unk> recapitalization plan + united pilots have shown on a number of occasions they are willing and able to strike said an executive at fuji bank one of ual 's large lenders + if you have both labor groups on strike you 've got no revenue and that 's a very scary thing for a bank to be looking at + just this past week a leading japanese bank asked for a meeting with the machinists ' union leaders to determine where the union would stand if another bid or recapitalization became possible + another reason <unk> by their success in helping to scuttle the previous transaction the machinists are likely to be more aggressive if a second buy-out attempt occurs + the two unions already had significant leverage simply because their employer has yet to settle with either on new contracts + that gives them both the threat of a strike and the ability to resist any wage concessions that may be necessary to make a transaction work + thus even investors who are pushing for the board to do a recapitalization that would pay shareholders a special dividend and possibly grant employees an ownership stake acknowledge that the unions are key + there 's less likelihood of creating and completing a transaction without the unions ' cooperation and wage concessions said richard nye of baker nye investments a new york takeover <unk> + mr. nye thinks the ual board should be ousted if it does n't move soon to increase shareholder value + both the pilots and machinists have made it clear that they intend to block any transaction they do n't like + the pilots will be involved in any transaction that takes place around here pilot union chairman frederick c. <unk> declared yesterday + but whether the pilots can team up with their longtime <unk> the machinists is another question + the pilots ' mr. <unk> says his union would like majority ownership for employees + at the very least the pilots want some form of control over the airline perhaps through <unk> voting rights + on the other hand the machinists have always opposed majority ownership in principle saying they do n't think employees should be owners + still in recent days machinists ' union leaders have shown some new flexibility + we may be able to reach a <unk> where we can accommodate the pilot union 's concerns and <unk> said brian m. freeman the machinists ' financial adviser + mr. freeman said machinists ' union advisers plan to meet this week to try to draw up a blueprint for some form of recapitalization that could include a special dividend for shareholders an employee stake and perhaps an equity investment by a friendly investor + if a compromise ca n't be reached the pilots maintain they can do a transaction without the support of the machinists + but at this point that may just be <unk> thinking + the machinists lobbied heavily against the original bid from ual pilots and management for the company + their opposition helped scare off some japanese banks + the pilots ' insistence on majority ownership also may make the idea of a recapitalization difficult to achieve + who wants to be a public shareholder investing in a company controlled by the pilots ' union asks <unk> <unk> an analyst at wertheim <unk> & co + who would the board be working for the public shareholders or the pilots she adds + ms. <unk> says she believes a recapitalization involving employee ownership would succeed only if the pilots <unk> on their demand for control + she also notes that even if the pilots accept a minority stake now they still could come back at a later time and try to take control + another possibility is for the pilots ' to team up with an outside investor who might try to force the <unk> of the board through the solicitation of <unk> + in that way the pilots may be able to force the board to approve a recapitalization that gives employees a majority stake or to consider the labor-management group 's latest proposal + the group did n't make a formal offer but instead told ual 's advisers before the <unk> board meeting that it was working on a bid valued at between $ N and $ N a share + but again they may need the help of the machinists + i think the dynamics of this situation are that something 's got to happen said one official familiar with the situation + the board and ual 's management he says ca n't go back to business as usual + the pilots wo n't let them + delta air lines earnings soared N N to a record in the fiscal first quarter <unk> the industry trend toward declining profits + the atlanta-based airline the third largest in the u.s. attributed the increase to higher passenger traffic new international routes and reduced service by rival eastern airlines which is in bankruptcy proceedings in the wake of a strike that began last spring + for the quarter ended sept. N delta posted net income of $ N million or $ N a share up from $ N million or $ N a share a year earlier + revenue rose N N to $ N billion from $ N billion + during the quarter delta issued N million shares of common stock to <unk> and <unk> N million shares for use in a company employee stock ownership plan + the key to delta 's record earnings continued to be excellent passenger revenue growth said thomas <unk> chief financial officer + passenger traffic jumped N N in the quarter while profit per passenger grew N N + delta has benefited more than other carriers from the weakness of eastern airlines which shares the atlanta hub + although eastern is back to about N N of its <unk> schedule now the texas air corp. subsidiary was only beginning to get back on its feet during the quarter + separately america west airlines phoenix ariz. reported third-quarter profit jumped N N to $ N million or N cents a share from $ N million or N cents a share a year earlier + the latest results include a $ N million one-time payment from a foreign entity + america west would n't identify the entity but said the payment was for the foreign company 's use of certain tax benefits in connection with america west plane purchases + year-earlier results included an extraordinary gain of $ N million from a buy-back of convertible subordinated debentures + revenue rose N N to $ N million from $ N million + for the nine months america west posted earnings of $ N million or N cents a share compared with a loss of $ N million or N cents a share a year earlier + revenue rose N N to $ N million from $ N million + papers + thomson corp. 's globe & mail newspaper in november will begin <unk> an experimental edition to selected subscribers ' facsimile machines + the <unk> news summary will be aimed at readers outside canada or in canadian locations where the national daily is n't available on the day of publication + in the u.s. the hartford <unk> has a facsimile edition and some other newspapers are considering the idea + who 's news + michael t. carr advertising director of <unk> magazine was named publisher of national <unk> and heavy metal magazines succeeding george <unk> + it was the first management change since <unk> daniel <unk> and tim <unk> took control of national <unk> inc. in march + they are looking for a new editor for national <unk> and are trying to sell heavy metal + columbia savings & loan association reeling from <unk> changes mandated by congress and the recent collapse of the junk-bond market announced a loss for the third quarter of $ N million or $ N a share + for the quarter a year ago columbia reported earnings of $ N million or N cents a share + total assets increased to $ N billion in the latest quarter from $ N billion a year earlier + the loss stems from $ N million of write-downs on columbia 's $ N billion high-yield investment securities portfolio which includes about $ N billion of junk bonds $ N million of preferred stock and treasury securities + columbia owes its spectacular growth in recent years to its junk-bond portfolio the largest of any u.s. thrift + much of columbia 's junk-bond trading has been done through the high-yield department of its beverly hills neighbor drexel burnham lambert inc + for the nine months losses totaled $ N million or $ N a share compared with net income of $ N million or $ N a share a year earlier + the results include a $ N million write-down of the securities in the high-yield portfolio to the lower of their cost or market value + columbia also added $ N million to reserves for losses on the portfolio increasing general reserves to $ N million or about N N of the total portfolio as of sept. N + on june N loss reserves stood at $ N million + thrift officials said the $ N million reserve will be adjusted quarterly and will reflect the rate of <unk> and market conditions + the adjustments result from the recently passed <unk> bailout legislation which requires thrifts to <unk> all high-yield bond investments by N + previously columbia did n't have to adjust the book value of its junk-bond holdings to reflect declines in market prices because it held the bonds as long-term investments + because columbia now must sell the bonds within five years accounting rules require the thrift to value the bonds at the lower of cost or market prices + for its future strategy columbia officials said the thrift may branch out into commercial lending or managing outside investments as well as <unk> up more traditional thrift activities + the quarterly results also reflected $ N million in <unk> losses from commercial real-estate activities in california + thomas spiegel columbia 's chairman said in a statement that the thrift was disappointed by the effects of the accounting changes + but he said columbia remains one of the most strongly capitalized thrifts in the industry based on the economic value of its assets and tangible capital + columbia announced the results after the close of the stock market + its shares closed at $ N each in composite new york stock exchange trading down N cents + the price of columbia shares has been cut nearly in half since august when they traded at about $ N as investors apparently realized that the thrift would be forced to take a big write-down + the stock 's decline accelerated in the past two weeks from a price of $ N a share on oct. N + columbia officials said they do n't know how quickly they will <unk> of the thrift 's junk bonds because federal regulations such as those that would allow thrifts to continue holding the bonds in separately capitalized subsidiaries have n't yet been completed + columbia officials also said the thrift should n't face problems meeting regulatory capital requirements despite the large reserves and write-downs and <unk> regulatory requirements that should be in place by year 's end + its ratio of tangible equity to total assets as of sept. N was N N and total equity was $ N million + the thrift emphasized that it has a large portfolio of equity securities issued in connection with corporate restructurings and leveraged buy-outs which has a book value of $ N million + although many of the transactions related to those securities have n't been completed columbia said the ultimate gain on the sale of those assets will range from $ N million to $ N million + columbia also has <unk> gains in its public equity securities portfolio of more than $ N million + david b. <unk> in new york contributed to this article + <unk> cos. said it plans to aggressively discount its major beer brands setting the stage for a potentially <unk> price war as the maturing industry 's growth continues to slow + anheuser the world 's largest brewer and u.s. market leader has historically been reluctant to engage in <unk> as a means of boosting sales volume + with the passing of the <unk> days of swelling industry sales however the <unk> and brief <unk> into discounting are becoming standard competitive weapons in the beer industry + over the summer anheuser competitors offered more and deeper discounts than industry observers have seen for a long time + some experts now predict anheuser 's entry into the fray means near-term earnings trouble for all the industry players + the st. louis company said major rivals philip morris co. 's miller brewing unit and <unk> coors co. have been following a policy of <unk> and deep discounting for at least the past N months on their premium brands pricing their product as much as N cents a <unk> below anheuser 's <unk> label in many markets + anheuser said it 's discounting policy basically would involve matching such moves by rivals on a <unk> basis + <unk> announced its plan at the same time it reported third-quarter net income rose a <unk> N N to $ N million or N cents a share from $ N million or N cents + <unk> sales were $ N billion up from last year 's $ N billion + anheuser said its new strategy started in some markets last month and expected to be applied soon in selected markets nationwide will mean <unk> earnings for the last half of N and for N + the projection sent anheuser shares plunging $ N in new york stock exchange composite trading yesterday + the stock closed at $ N on heavy volume of about N million shares + shares of coors the company 's sole publicly traded major competitor fell $ N apiece to $ N in national over-the-counter trading apparently on investor concerns over potential fallout from the coming pricing struggle + anheuser noted that beer industry sales volume is N is following the trend that has characterized the last half of the '80s with sales volume being essentially flat while consolidation creates fewer bigger players + we can not permit a further slowing in our volume trend anheuser said adding it will take appropriate competitive pricing actions to support our long-term market share growth strategy for the premium brands + anheuser said it continues to hold to its <unk> goal of a N N u.s. market share by the mid-1990s + beneath the <unk> <unk> <unk> lies a powerful threat from the brewing giant which last year accounted for about N N of all u.s. beer sales and is expected to see that grow to N N in the current year + anheuser is the biggest guy in the bar and he just decided to join in the <unk> <unk> said joseph j. doyle an analyst with smith barney harris upham & co + it 's going to get bloody + jerry <unk> publisher of beer marketers <unk> a trade newsletter said anheuser 's announcement means everybody else in the industry is going to have a difficult time reaching their profit objectives + prudential-bache securities inc. analyst george e. thompson <unk> the importance of the announcement and called any comparison between the coming <unk> <unk> and the seemingly <unk> <unk> wars unwarranted + mr. thompson calls discounting a loser 's game for anyone without a dominant market share and projected that anheuser 's statement of intent could simply be a means of warning competitors to ease up on <unk> or face a costly and <unk> battle + mr. thompson noted that the disappointing earnings which fell five cents a share short of his own projections contributed to the sell-off by an <unk> and currently <unk> investing public + but smith barney 's mr. doyle who yesterday trimmed his N anheuser earnings projection to $ N a share from $ N called the market 's reaction justified + while the third-quarter earnings were a moderate disappointment he said the real bad news is the intensity of price competition in the <unk> sector + according to mr. <unk> the newsletter publisher anheuser 's market share is nearly twice that of its <unk> competitor miller brewing which had a N N stake last year + it 's followed by <unk> brewery co. which has agreed to sell its assets to coors + both coors and <unk> have recently been <unk> market share to miller and anheuser + tokyo stocks closed easier for the second consecutive day finishing at the intraday low on <unk> investment trust fund selling toward the end of the afternoon session + stocks rose in london but fell again in frankfurt + tokyo 's nikkei index fell N points to N + trading was active + volume on the first section was estimated at N billion shares up from N million tuesday + the tokyo stock price index of first section issues was down N at + in early trading in tokyo thursday the nikkei index rose N points to N + on wednesday the market opened <unk> with high turnover ignoring the volatility in new york stocks + but losers were spread in a broad range by the end of the session + a trader said that the more an issue gained recently the sharper the loss sustained wednesday + a trader at yamaichi securities said the market 's mood was undercut by the continuing fall of nippon telegraph & telephone shares which declined to their lowest level since the <unk> of this year + <unk> lost N yen to N yen $ N + some traders noted individual investors dumped <unk> shares amid growing expectation for a division of the company as suggested by a recent <unk> panel + dealers said they also took profits to reduce holdings in their own account at the end of the october transaction period + among pharmaceutical shares chugai lost N yen to N yen $ N and <unk> fell N to N + other losing issues included <unk> shell which fell N to N + toyota motor fell N to N + <unk> house which gained N tuesday lost N to N + daiwa house also ended easier but <unk> home was firmer + pioneer electronic and sony both of which dominated buying earlier this month continued to fall wednesday + pioneer was down N at N and sony lost N to N down N N from its record set oct. N + london share prices closed modestly higher largely on technical factors although the market was <unk> near the end of the session by wall street 's firmer trend + the financial times 100-share index finished at N up N points + the 30-share index ended N points higher at N + volume was thin at N million shares traded down from N million tuesday + dealers said the market gained some late steam on a flurry of buying by market-makers looking at blue-chip issues and stocks viewed as <unk> during the market 's recent <unk> + outside what essentially amounted to a <unk> exercise dealers said london dealings were largely <unk> by the absence of active interest beyond the market-makers + the late buying was drawn into the london market dealers added after wall street showed signs of stability following its rocky opening + stocks that suffered on the day were those with active u.s. operations dealers noted + among them were b.a.t industries which settled N pence a share lower at N $ N + hanson with N million shares traded closed N lower at N + dealers said the shares were hit by fears of a slowdown in the u.s. economy + cable & <unk> benefited from a market squeeze <unk> N to N in moderately active volume + jaguar was boosted N to N on <unk> buying after ford motor 's announcement tuesday that it might be prepared to mount a full bid for the u.k. luxury auto maker + it was further helped by ford which announced after london 's close that it had raised its stake to N N from just under N N on tuesday + frankfurt prices closed sharply lower in thin dealings hurt by the roller-coaster session on wall street tuesday and worries about wage demands by the largest west german trade union + the german stock index tumbled N to end at + it was dead <unk> <unk> and negative said one trader at a u.s. bank in frankfurt + there was little turnover and nothing to stimulate the market + equities tumbled at the opening as tuesday 's gyrations on wall street where the dow jones industrial average recovered most of an <unk> loss fueled fears of another stock market crash brokers said + tough talk from trade union officials at the conference of the powerful ig metall metals worker union in west berlin raised the specter of nationwide strikes next spring they said + for the N wage negotiations the ig metall is demanding a further cut in the german <unk> and steep wage increases which could sharply increase the costs for german industry + all the positive figures on the economy are out already and people are focusing more on the dangers for next year mostly the wage talks and the parliamentary elections the u.s. trader said + the market also <unk> off positive factors such as higher bond prices and a slowdown in monetary growth in september traders said + they said they expect the bearish mood to <unk> a while longer as trading volume is falling toward the end of the year and the market is becoming more volatile + in the auto sector <unk> <unk> <unk> plunged N marks to N marks $ N daimler-benz dropped N to N and <unk> slumped N to N + continental gave up some of its recent gains dropping N to N as rumors of an impending takeover attempt for the <unk> faded brokers said + deutsche bank plummeted N to N hurt by the general mood + other banks were slightly more <unk> with dresdner bank shedding N to N and commerzbank slipping N to + meanwhile wall street 's volatility <unk> investors in other markets + share prices closed lower in paris zurich brussels milan and stockholm and mixed in amsterdam + among pacific markets prices closed lower in sydney seoul hong kong manila singapore and wellington + trading in taipei was suspended for a national holiday + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + french chemicals group orkem s.a. said wednesday it has made a bid for control of coates brothers plc a british manufacturer of <unk> and <unk> <unk> + state-controlled orkem already owns N N of coates + the remainder is held by the public and by family interests a spokeswoman for the french group said + orkem declined to give details of its offer saying only that the bid will be submitted for approval by the board of the british company + the <unk> house by a margin of N votes failed to override president bush 's veto of legislation renewing federal support of medicaid abortions for poor women who are victims of rape and incest + the N roll call illustrates the limits of power a <unk> abortion-rights movement still faces + it continues to gain strength in the chamber but remains far short of the two-thirds majority required to prevail over mr. bush + democrats voted to override by a N margin but republicans were equally firm in support of the president who has threatened to make abortion a decisive issue on at least three separate fiscal N spending bills + yesterday 's vote dealt with the largest of these bills an estimated $ N billion measure funding the departments of labor education and health and human services + to gain more leverage abortion-rights advocates may seek to <unk> the bill into an omnibus continuing resolution next month + but the stark numbers yesterday when N votes were needed indicate the president is in a commanding position for at least this year + unless he changes they lose said a democratic leadership aide + the action came as congress sent to the president last night a <unk> spending bill to keep the government operating through nov. N and provide $ N billion in emergency funds to assist in the recovery from hurricane hugo and the california earthquake + by a <unk> N margin the senate approved the measure after <unk> further provisions sought by the influential california delegation and despite reservations the house adopted the bill on a N roll call + the package is more than $ N billion above the recommendations of budget director richard darman this week + but given the political importance of california the administration was content to use its influence to prevent any senate amendments adding further new appropriations + the $ N billion measure comes on top of $ N billion appropriated after hugo struck the carolinas and caribbean last month and these totals do n't reflect the additional benefit of <unk> disaster loans + the bill last night includes $ N million to help finance this credit and further raises the obligation ceiling for the small business administration <unk> to $ N billion to accommodate the expected loan activity + in direct cash assistance $ N billion is provided in federal highway construction funds and $ N billion is divided between general emergency aid and a reserve to be available to the president to meet unanticipated costs from the two disasters + in the senate majority whip alan cranston used his position to win not only the expanded credit but also more generous treatment than the house had permitted in the distribution of highway funds in the next six months + the emergency assistance would n't be counted against a state 's normal allocation of annual highway funds and the bill <unk> existing restrictions that otherwise would prevent the use of federal aid to repair a toll road such as the san <unk> bay bridge damaged in last week 's earthquake + the underlying <unk> bill is the second required by congress this fall and since the current fiscal year began oct. N only the energy and interior departments are operating on permanent appropriations enacted into law + the <unk> over abortion is certain to contribute to further delays and apart from the health and education measure vetoed by mr. bush bills funding the district of columbia and the entire u.s. <unk> budget are in jeopardy because of related abortion or <unk> issues + the vote yesterday was the most <unk> in many years and though the democratic leadership is <unk> about how to address the abortion issue the debate is increasingly measured in party terms + the N democrats who supported the override yesterday compare with N who initially backed the <unk> exemption two weeks ago and N last year on a similar vote + by comparison republicans have held closer to the anti-abortion movement + only N gop members opposed the president 's veto a marginal increase over the vote two weeks ago and just N more than the N who supported the <unk> exemption last year + at a recent white house meeting rep. <unk> <unk> r. mass. the ranking minority member of the house appropriations committee argued with his friend mr. bush against a veto and though mr. <unk> and minority leader robert <unk> of illinois stood with the president yesterday they are <unk> uncomfortable with his position + this is n't a political issue this is a moral issue said rep. henry <unk> r. ill. the most <unk> spokesman for the anti-abortion movement + but after years of using the issue for its benefit the gop finds its candidates on the defensive + new jersey gubernatorial candidate rep. james florio <unk> returned from <unk> to vote against the president yesterday in contrast with his opponent gop rep. james courter who has <unk> supported abortion restrictions in the past but was <unk> + in an extraordinary mix of <unk> and <unk> powers rep. robert <unk> r. calif <unk> his fellow roman <unk> including mr. florio for having the <unk> to disagree with the <unk> of their church on abortion + rep. <unk> <unk> was as blunt on behalf of the abortion-rights movement + this may not make george bush a <unk> president said the oregon liberal addressing the republican side of the house + but if you support him over rape victims this may be your last term + separately the house last night approved a nearly $ N billion compromise spending bill providing the first construction funds for the administration 's ambitious space station in fiscal N and <unk> far-reaching provisions affecting the federal mortgage market + the current ceiling on home loans insured by the federal housing administration would be increased to $ N and the bill gives the department of housing and urban development new authority to facilitate the refinancing of subsidized loans for low-income homeowners + by a N margin the appropriations committee leadership beat back an early challenge by house banking chairman henry gonzalez d. texas to the fha provision + and on a closer N roll call lawmakers upheld controversial agreements made by a house-senate conference <unk> community development funds for more than N projects backed by often influential members + rupert murdoch acquired a N N stake in <unk> zeta s.a. the leading spanish magazine and newspaper publisher said + the transaction called for mr. murdoch 's news international plc a unit of <unk> news corp. to subscribe to a rights issue by zeta valued at N billion pesetas $ N million + also participating in the issue was <unk> spain <unk> s.a + the film producer owned by <unk> financier <unk> <unk> received a N N stake in the <unk> publishing group + the cash injection boosted zeta 's capital more than <unk> to N billion pesetas from N billion pesetas greatly <unk> the group 's ability to make investments zeta officials said + following its failure last month to win a license for one of spain 's first three private television stations zeta is seeking investment opportunities in communications and publishing + with annual sales of about N billion pesetas zeta publishes over a dozen magazines including the popular <unk> <unk> and <unk> and three regional <unk> + chairman antonio <unk> will retain a N N share in zeta + the new york stock exchange is expected to launch its own program trading vehicle today just as controversy over this trading strategy <unk> up + the big board this morning plans to begin trading its exchange stock portfolio basket product the first program-trading vehicle carrying the exchange 's seal of approval + <unk> will allow institutional investors to buy or sell all N stocks in standard & poor 's index in a single trade of a minimum of $ N million + <unk> baskets of fewer stocks will also be available + the securities and exchange commission gave provisional six-month approval to the big board basket at a meeting late yesterday + the sec at the same time approved a similar but smaller basket product on the chicago board options exchange where the minimum will be $ N million + also approved was a plan to trade stock portfolios by computer after regular hours on the midwest stock exchange + the basket products are an <unk> step in solving problems in trading big blocks of stock that came to light in the N market crash said sec commissioner joseph <unk> + new sec chairman richard breeden overseeing his first public meeting said there have been concerns that the big board 's basket could attract investors with a short-term perspective who would rapidly turn over the product thus increasing volatility + but richard <unk> the sec 's market regulation chief said he did n't believe this will <unk> dramatic new program-trading strategies that will be <unk> + the baskets on the big board and cboe which involve the actual s&p stocks unlike the stock-index contracts currently traded on the chicago futures markets and index options on the cboe will begin trading as critics step up their attacks on program trading and its contributions to the stock market 's wild price swings + the big board argues that its new product will help rather than hurt the situation by possibly drawing business from <unk> forms of program trading + <unk> are also an attempt by the big board to head off the exodus of program trading business to overseas markets such as london + big board officials also hope japanese investors will become interested in the exchange 's product + already many of the big board 's own floor traders are warning that the <unk> baskets are risky and not in the best interests of the investing public + the <unk> alliance of floor brokers said the new product with the $ N million minimum will benefit only big institutional investors and could lead to wild <unk> of volatility + stockbrokers who cater to individual investors said the big board 's new product confirms the exchange does n't want to curtail program trading which last month accounted for a record N N of the exchange 's average daily volume + the new york stock exchange is losing its cool here said james <unk> head of institutional trading at <unk> montgomery scott inc. in philadelphia + the new stock baskets are going to make it easier for program trading to be done + and it 's going to be done more frequently as the result of having more access to it at different places + both the big board 's exchange stock portfolio and the chicago exchange 's market basket are designed for institutional investors + the big board lists its targets as pension plans mutual fund managers and index-arbitrage traders + in index arbitrage program traders buy and sell stocks and stock-index futures to profit from small price discrepancies between the markets + at the same time only four securities firms have signed up with the big board to buy and sell <unk> as market makers an <unk> response + the market makers so far are cs first boston group 's first boston corp. unit morgan stanley & co. painewebber group inc. and salomon inc. 's salomon brothers inc. unit + kidder peabody & co. a general electric co. unit that has become the biggest program trader along with morgan stanley is n't a market maker although the big board hopes that will change + similarly the big board hopes to <unk> merrill lynch & co + neither has plans to be a market maker for now + traders said major securities firms are reluctant to become market makers because they fear the baskets may attract only limited trading + big board officials say only N contracts a day may trade at first equivalent to a day 's action at a small regional exchange + even though the big board says its product represents a post-crash reform some traders suggest that if the new basket had been trading during this month 's friday the 13th market plunge the dow jones industrial average might have dropped more than the N points it did + with the futures locked into a trading halt oct. N and trading in some individual stock difficult program traders would have undoubtedly fled to the basket system the traders say + if we had the baskets we would be leaving in <unk> one trader said + the sec 's mr. breeden said the <unk> trading on the midwest exchange would help the u.s. win back business that has moved overseas to conduct <unk> trades + comprehensive care corp. which has agreed to be acquired by closely held first hospital corp. reported a $ N million loss for its aug. N first quarter and said it is negotiating an extension of senior bank debt past its oct. N due date + in composite trading yesterday on the new york stock exchange comprehensive care shares plunged $ N to close at $ N on volume of N shares + the loss in comprehensive care 's latest quarter is equal to N cents a share + in the year-earlier quarter comprehensive care earned $ N million or N cents a share + revenue in the latest quarter fell N N to $ N million from $ N million the company said reflecting poor utilization of the company 's facilities and its <unk> medicine contracts + comprehensive care shareholders have approved acquisition of the developer and operator of <unk> chemical <unk> and psychiatric programs for about $ N million in cash notes and stock of first hospital norfolk va + the price was reduced last august from an indicated value of $ N million + comprehensive care said first hospital had advised it that both bank debt and senior notes would be repaid after the acquisition although it is n't assured the acquisition will be completed + if it is n't completed comprehensive care said it would be required to promptly restructure its debt + first hospital advised comprehensive care that an agent for the financial institutions providing financing of its acquisition is scheduled to make a final credit determination tomorrow and that a favorable determination could result in a reorganization at comprehensive care by the end of october + failure to win such a determination however would lead comprehensive care directors to consider various alternatives comprehensive care said without <unk> + separately first hospital reported a N N rise in net income to $ N million for its year ended june N on a N N increase in revenue to $ N million + it said however that net income for the <unk> period ended aug. N plunged to $ N from $ N in the prior year on a N N rise in revenue to $ N million + a group including new york investors douglas a. <unk> and anthony <unk> holds the equivalent of a N N stake in h.h. robertson co. 's common shares outstanding according to a filing with the securities and exchange commission + officials of <unk> h.h. robertson which makes steel <unk> store fronts and building parts declined comment + as reported last month mr. <unk> said he was interested in making an offer to buy h.h. robertson for $ N a share + in the sec filing the <unk> group said it intends to acquire additional h.h. robertson shares with a view <unk> a possible change in control of the company + it has not however made a formal proposal + the group also is engaged in talks with third parties regarding obtaining financing to buy more shares but no agreements have yet been reached the filing said + the group controls N h.h. robertson common shares assuming exercise of an option it acquired from executive life insurance co. to buy N shares + its stake includes N shares bought in the open market from aug. N to oct. N for $ N to $ N a share + in new york stock exchange composite trading yesterday h.h. robertson closed at $ N up N cents + after coming close to a partial settlement a year ago shareholders who filed civil suits against ivan f. boesky and the partnerships he once controlled again are approaching an accord people familiar with the case said + meanwhile within the next few weeks the limited partners in ivan f. boesky & co l.p. are expected to reach a partial settlement with drexel burnham lambert inc. regarding the distribution of the $ N million in partnership assets said one of the individuals + under the terms of the settlement the limited partners would drop their civil suits against drexel now pending in federal court in new york another individual said + attorneys involved in the talks said that the parties were closer to accord than they were a year ago when reports of an imminent agreement circulated + one individual said the shareholders ' accord was well worked out + however less optimistic attorneys warned that because of the <unk> of numerous defendants and plaintiffs with <unk> claims there is always the possibility that the talks will again fall apart + a shareholders ' accord would provide the first <unk> to thousands of individuals and institutions claiming losses as a result of insider trading by boesky & co. once the largest arbitrage fund in the u.s. + the plaintiffs are investors who bought and sold securities in which mr. boesky and his partnerships were dealing + some claim they suffered losses because they sold while he was buying and others because they bought while he was selling + stocks involved in the shareholder suits include union carbide rjr nabisco american natural resources <unk> cascade corp. general foods corp. houston natural gas and <unk> corp + there are at least N class-action shareholder suits that have been consolidated in federal court in new york under u.s. district judge milton <unk> + among the defendants are mr. boesky the <unk> ivan f. boesky & co. mr. boesky 's main underwriter drexel burnham and <unk> & general securities plc a british investment fund once controlled by mr. boesky + individuals familiar with the negotiations said the partial settlement being negotiated would remove the boesky partnership the british fund and mr. boesky as defendants while drexel and other defendants would remain + charles <unk> of the washington <unk> law firm <unk> cutler & <unk> which represents mr. boesky in this matter said only that discussions are under way + there are no agreements yet + it has been three years since mr. boesky now in prison agreed to pay a $ N million fine to settle the government 's charges that he had traded illegally using insider information + out of this the government set up a $ N million fund for plaintiffs who can prove their financial losses + according to william <unk> an attorney at <unk> & <unk> the escrow agents for the fund as of sept. N the fund amounted to $ N million + separately attorneys for the N or so limited partners have had serious discussions that could lead to the distribution of the partnership 's assets + the limited partners include insurance companies financial institutions and individual investors + an agreement with drexel regarding the limited partners ' investments is an essential step toward getting their money back + this is because a delaware court earlier this year said that drexel is entitled to get its money back before or at the same time as the limited partners + drexel is owed $ N million by the partnership + an individual familiar with the negotiations said that whatever investments the limited partners do not recoup from the $ N million in partnership assets they will receive from the $ N million <unk> fund available as a result of drexel 's settlement with the government in december N + drexel agreed to plead guilty to six felony counts and pay $ N million of which $ N million was set aside for shareholders and other plaintiffs including the limited partners who claim they were injured by drexel + jailed <unk> activist wins a battle against the + u.s. district judge robert p. patterson jr. ordered the fbi to immediately begin processing <unk> benjamin ferguson 's request for documents stemming from the agency 's investigation of him during the 1960s + the fbi had said it would not be able to begin processing the request until june + mr. ferguson who is N years old fled the u.s. in N after <unk> his appeals of a N conviction on conspiracy to murder + he turned himself in to authorities in new york earlier this year + he maintains that the information from the fbi will help him get his N conviction vacated and his <unk> indictment dismissed + his attorneys claim he was <unk> by the fbi and new york police as part of a campaign to destroy the black liberation movement of the 1960s + because the federal freedom of information act was n't law at that time the fbi was n't required to turn over information on its investigations when mr. ferguson appealed his conviction in the 1960s + but in federal court in manhattan judge patterson said the fbi records could show that mr. ferguson 's arrest was the result of questionable legal practices + the judge said that if the fbi 's proposed schedule was followed in <unk> the documents a delay of over one year will have occurred and plaintiff will have served approximately two-thirds of his N 1\/2-year minimum sentence by the time he receives the files + <unk> w. <unk> the assistant u.s. attorney handling the case for the fbi said no decision has been made about appealing the judge 's ruling + federal courts urged to cut costs and reduce delays of civil suits + the study conducted by a task force of the <unk> institution suggests that congress should require the courts to develop the plans + the study was initiated by senate judiciary committee chairman joseph <unk> d. del + the washington d.c. think tank recommends that the courts adopt different tracks for different types of civil cases in order to separate the handling of highly complex suits from simpler ones + complex cases such as antitrust suits and many business disputes would receive intense supervision by federal judges to keep pretrial proceedings moving + standard cases would require less judicial attention and <unk> cases could be resolved quickly + the study also said each federal court should set strict time limits for the pretrial exchange of documents and evidence ranging from as much as N days for cases in the fast track to as much as N months for complex disputes + and the study said federal courts should set firm trial dates early in the process + to take advantage of local expertise and custom the study said congress should require each of the N federal district courts to adopt its own plan to speed the handling of civil suits and to reduce the high costs in civil cases + although some of the study 's recommendations resemble those of similar projects the makeup of the task force was unusually diverse adding significance to the effort + it included lawyers from civil rights and consumer groups plaintiffs ' lawyers and defense attorneys corporate counsel and law professors + businessland inc. said it purchased a major regional computer retailer data systems computer <unk> inc. <unk> new jersey + terms were n't disclosed + the purchase <unk> san jose calif.-based businessland 's links to the large corporations who are among the biggest buyers of computers + data systems has five retail stores in the northeast but specializes in selling personal computers made by international business machines corp. and apple computer inc. to banks brokerage firms and other big businesses based in the new york metropolitan area + john <unk> chief executive officer of data systems said the company was profitable and expected sales of nearly $ N million this year + he said businessland which operates stores in N u.s. metropolitan areas planned to absorb his firm 's operations + eastman kodak co. of rochester n.y. said its <unk> & <unk> products subsidiary was restructured to form two operating groups one for household products such as <unk> and <unk> and the other for <unk> products such as wood <unk> and <unk> + the <unk> n.j. unit said the new operating structure creates a more focused and responsive organization geared to effectively managing the size and scope of the unit 's current business + the consumer brands unit was absorbed by the photographic pharmaceutical and chemical concern last year when it acquired sterling drug inc + in a related matter peter black president of consumer brand <unk> was named group vice president for the household products operating group + kenneth m. evans president of thompson & <unk> brand was named group vice president of the <unk> operating group + sotheby 's holdings inc. the parent of the auction house sotheby 's said its net loss for the seasonally slow third quarter narrowed from a year earlier on a leap in operating revenue + the new york-based company reported a third-quarter net loss of $ N million or N cents a share compared with a year-earlier net loss of $ N million or N cents a share + operating revenue surged N N in the latest period to $ N million from $ N million + the company said N N of its auction business is usually conducted in the second and fourth quarters with the current quarter having begun extremely well + west texas intermediate the u.s. benchmark crude seemed <unk> again yesterday in trading on the new york mercantile exchange + widely expected to open N to N cents a barrel higher on the strength of statistics from the american petroleum institute the december contract managed to start the session only eight cents higher + in the last hour of the trading day december contract took a tumble to end the session N cents lower at $ N a barrel + and now that the price has fallen below $ N which many had said showed considerable resistance some traders and analysts figure there 's little to stop the price from going lower on technical decisions + with no <unk> news or changes in the fundamentals to <unk> price moves technicians are wanting to sell this stuff said eric <unk> of edge trading corp + and short-term the technicians may have their way + the market quickly discounted the weekly inventory report showing a N million barrel decrease in u.s. crude oil stocks as the <unk> of hurricane jerry + that storm hit the gulf coast oct. N closing the louisiana offshore oil port for a time and preventing <unk> from unloading + next week 's report could very well show an increase in crude inventories + <unk> the trade group 's numbers left traders plenty of time to worry <unk> about the latest reports on opec production + an <unk> jones survey of integrated oil companies independent refiners and oil industry consultants indicates that the organization of petroleum exporting countries increased its production to N million barrels a day in september + estimates suggest october 's figure may be even higher + that level of production is n't of much concern as long as demand continues strong analysts said + but the first quarter of the year is generally the weakest and opec production does n't seem to be <unk> in anticipation of that + also maintaining current demand assumes no significant slowdown in world economies + to top off the bearish factors affecting yesterday 's trading late october weather especially in the northeast u.s. continues to be very moderate leaving heating oil futures trading lackluster + we are n't seeing any cold weather here mr. <unk> said from new york + in other commodity markets yesterday + grains and soybeans + soybean and corn futures prices moved higher on the strength of buying from commodity pool managers trying to profit from technical price trends as well as continued export strength + a <unk> off of farmer selling tied to the harvest also removed some of the downward pressure on futures contract prices + wheat futures prices fell however at least partly in reaction to the rumored selling of futures contracts equal to several million <unk> of wheat by commodity <unk> richard dennis + neither mr. dennis nor officials of his chicago trading company <unk> commodities could be reached for comment + as for corn and soybean futures a lot of commission house buying this morning and computer-driven buying supported prices in early trading said steven freed a futures analyst with dean witter reynolds inc. in chicago + soybean futures for november delivery gained N cents a bushel to close at $ N a bushel on the chicago board of trade + december corn futures added N cents a bushel to close at $ N a bushel on the board of trade + announced and anticipated purchases from foreign countries are also supporting futures prices + russian ships are <unk> in the gulf and there is n't enough grain in the pipeline said <unk> <unk> a futures analyst with merrill lynch & co. in new york + the soviet union has purchased roughly eight million tons of grain this month and is expected to take delivery by year end analysts said + cotton + futures prices rose modestly but trading volume was n't very heavy + the december contract settled at N cents a pound up N cent but it rose as high as N cents + several cotton analysts said that the move appeared to be mostly technical + traders who had sold contracts earlier in hopes of buying them back at lower prices yesterday were buying contracts back at higher prices to limit their losses + floor traders also said that the market could have been helped by rumors which have been circulating for the past two days about china purchasing cotton + the rumor which has been neither confirmed nor denied has china buying N to N <unk> for near-term delivery + one floor trader said that if there were chinese purchases they should have had a bigger effect on the market + another said that if china was a buyer it would be the earliest that country had made purchases since the N crop year and thus would be a bullish sign + this trader characterized the recent price action as a contest between the <unk> who see higher prices ahead and the technicians who are basically buying cotton toward the bottom of the current trading range around N cents and selling it when the price <unk> more than N cents + this trader said that he thought the market would turn aggressively bullish from a technical standpoint if the december contract was able to exceed N cents + he also noted that stocks on aug. N N are currently projected at N million <unk> the smallest <unk> supply since N + cocoa + the modest sell-off which started on tuesday continued + the december contract ended at $ N a metric ton down $ N + the market is <unk> at least partly because of a lack of crop information out of <unk> and the ivory coast the two largest african producers + harry schwartz a soft commodity specialist for <unk> investors services in new york said the only report <unk> has issued about the <unk> of cocoa from the interior was for N metric tons as of oct. N + by this time last year he noted <unk> totaling N tons had been announced + a similar situation apparently exists in the ivory coast with no figures released yet this year compared with N tons as of this time a year ago + he said that if little cocoa actually has arrived at the ports shipping delays could result + this is the worry that probably brought <unk> to the market earlier in the week he said + there was also some fear that without ivory coast cocoa a large french cocoa merchant cie financiere <unk> <unk> <unk> might not be able to deliver cocoa against the contracts it had sold earlier for december delivery in london + however the french merchant has about N tons of old crop ivory coast cocoa <unk> in the netherlands from an agreement it had negotiated with the ivory coast last spring + <unk> thinks that even though the merchant has a contract <unk> that it wo n't bring this cocoa to market until after march N there is some evidence the contract has been modified + this <unk> apparently would permit the french merchant to deliver this cocoa if necessary against existing short positions + richard d. sutton N years old chairman of this bank-holding company was named acting president and chief executive officer of the company and its first national bank of <unk> river subsidiary + joseph w. robertson N was dismissed from those posts the company said + he could n't be reached and a company spokesman would n't comment on the dismissal + mr. robertson was also removed from the board of first national bank of new <unk> county another unit and the <unk> river bank + american medical international inc. said it has n't received any other offers to acquire the owner and operator of hospitals and took another step toward completion of its $ N billion acquisition by ima holdings corp + earlier this month ima an investment group that includes chicago 's <unk> family and first boston corp. submitted a reduced bid for american medical after it could n't finance its initial offer + under the new offer ima will pay $ N a share for N million shares or about N N of the shares outstanding + ima also will assume $ N billion in debt + yesterday in composite trading on the new york stock exchange <unk> common closed at $ N up N cents on volume of almost N million + earlier american medical said it had been approached again by two other possible suitors whom it would n't identify but who had previously submitted bids for the company + yesterday american medical said that the two other parties told the company that they do n't have any current intention of making a takeover bid + american medical said its directors have approved what is in effect a draft of a <unk> opinion on the acquisition submitted by the los angeles-based investment banking and evaluation consulting firm of <unk> <unk> howard & <unk> inc + a final opinion must be approved prior to the acceptance of tendered shares for payment under the offer which was due to expire at N a.m. edt today + separately moody 's investors service inc. downgraded the ratings of american medical 's senior and subordinated debt issues and those of its international affiliate + the downgrade anticipates completion of the ima holdings acquisition today moody 's said + the ratings concern said the acquisition should result in pretax losses from operations because of increases in interest expense and charges for depreciation and amortization but that it expects the losses to be reduced through productivity gains and above average growth of the company 's hospitals + moody 's said the ratings anticipate a successful <unk> program and modest improvement in discretionary cash flow because of planned asset sales + moody 's changes affected the following issues + american medical international senior notes <unk> debentures <unk> notes eurobonds swiss franc bonds unsecured loan stock to <unk> from <unk> convertible subordinated debentures notes and <unk> debentures to <unk> from <unk> + american medical international n.v. guaranteed <unk> to <unk> from <unk> + an american medical spokeswoman said the moody 's downgrading was expected because of the nature of the takeover + bay financial corp. boston which has been reporting big losses and warning of a possible bankruptcy-law filing said it was sued by a holder + the real estate investment trust said the <unk> class action suit seeks damages and other <unk> under federal securities law and state law + gerald e. wilson corporate secretary and legal counsel said the company would n't disclose further details + he declined to name the shareholder the plaintiff 's lawyer or the court where the lawsuit was filed + bay which has substantial investments in the <unk> massachusetts market reported a loss of $ N million or $ N a share for the fiscal year ended june N + it has said it might seek bankruptcy-court protection from creditor lawsuits if it ca n't <unk> its borrowings + in new york stock exchange composite trading bay closed at $ N down N cents + keith a. tucker was named a director of this insurance and financial services concern + mr. tucker N years old is president of <unk> securities corp. and senior vice president of <unk> inc. closely held investment companies based in miami + his selection increases the size of the board to N members + <unk> also said that samuel e. <unk> jr. N vice president and general counsel was selected to serve the remainder of the term vacated by john <unk> <unk> who resigned as director + philip morris cos. new york adopted a defense measure designed to make a hostile takeover <unk> expensive + the giant foods tobacco and brewing company said it will issue <unk> purchase rights to shareholders of record nov. N + under certain circumstances the rights would <unk> philip morris holders to buy shares of either the company or its acquirer for half price + the board is n't aware of any attempts to take over philip morris the company said + as of sept. N philip morris had N million shares outstanding + in composite trading on the new york stock exchange philip morris shares closed yesterday at $ N each down $ N + <unk> s.a. said that it plans to sell its remaining paper operations by the end of january as part of a drive to <unk> on the food sector and lower its debt + the french unit of <unk> <unk> <unk> also disclosed a N N rise in its consolidated net profit for the first half of N excluding nonrecurring items and after payments to minority interests + <unk> said the sale will be done in two parts and will raise a total of N billion francs $ N million + this will include the sale of its interest in the joint venture <unk> <unk> to <unk> ag + the west german paper company entered the venture in april N by acquiring a N N stake also from <unk> + the other part of the transaction will see <unk> sell its N N stake in its <unk> paper affiliate to an unspecified unit of the petrochemical group montedison s.p a. which is also controlled by <unk> + and in a separate transaction <unk> will sell its remaining N N interest in <unk> a holding company for international trading assets to an unspecified unit of <unk> for N million francs + esselte ab the stockholm office supplies company as expected proposed to acquire the N N it does n't own of its u.s. unit esselte business systems inc + the price in the proposal is $ N for each of the N million shares the parent does n't own or $ N million + in new york stock exchange composite trading esselte closed yesterday at $ N a share up $ N + a committee of outside directors for the garden city n.y. unit is evaluating the proposal the parent asked it to respond by oct. N + the unit said it can provide no assurance a transaction will occur + esselte ab sold the minority stake five years ago in a $ N million international share offering + the unit which is the holding company for esselte 's <unk> units accounted for N N of sales and N N of operating profit last year + separately esselte business systems reported third-quarter net income fell N N to $ N million or N cents a share from $ N million or N cents a share in the year-ago period + sales rose N N to $ N million from $ N million + house and senate conferees agreed to continue production of grumman corp. 's f-14 and to provide more than $ N billion for the strategic defense initiative during the current fiscal year + industry officials and congressional aides said that the main points of a compromise defense authorization bill <unk> out during a flurry of private meetings over the past few days provide a <unk> compromise for both the white house and house democrats + although conferees are still putting the finishing <unk> on the package the final agreement could be announced as early as tomorrow + an announcement is more likely next week though + president bush and other supporters of sdi will be able to take credit for blocking house efforts to significantly cut the program to develop a <unk> <unk> system which already has cost some $ N billion + senate armed services committee chairman sam <unk> d. <unk> and other senate conferees have opposed the house cuts <unk> for almost two months action on a number of <unk> items in the pentagon 's budget + the senate voted to <unk> $ N billion for sdi spending in the current fiscal year but the house reflecting a dramatic erosion of support for the program earmarked only $ N billion + despite the widening gap between the two sides conferees eventually followed the pattern set in previous years by <unk> to roughly split the difference + that would hold spending on the program at about the previous year 's level + the decision to keep the <unk> f-14 's production line running for at least another year is an important victory for the house and especially for rep. <unk> <unk> d. <unk> + as the head of the house conferees rep. <unk> has been under intense pressure from his colleagues to reject senate provisions that would have abruptly cut further f-14 production + the package provides a temporary golden <unk> for grumman according to one congressional aide familiar with the <unk> bargaining + but as part of the overall agreement grumman and its outspoken supporters on capitol hill effectively will be <unk> from <unk> the emotional issue in the debate over next year 's budget + defense secretary dick cheney and most senators contend that the navy 's f-14 is too expensive in an era of shrinking pentagon budgets + but the plane boasts a strong core of support in the house where members are intent on saving grumman jobs and are worried about potential shortages of <unk> aircraft by the late 1990s + conferees also agreed to pentagon requests to <unk> a total of nearly $ N billion for work on both mobile <unk> and <unk> nuclear missiles according to congressional aides + and lawmakers are putting the finishing <unk> on a compromise that would give the air force nearly all of the $ N billion it wants for production of northrop corp. 's <unk> b-2 <unk> which cost $ N million apiece + the final b-2 agreement is certain to require detailed testing and <unk> of the bomber 's <unk> but congressional aides said the accord wo n't include a house-passed provision that would have withheld production funds until congress approves a cheaper <unk> version of the $ N billion fleet of N <unk> <unk> by the pentagon + consolidated <unk> inc. reported a N N drop in third-quarter net income citing expected losses in its <unk> worldwide shipping business + the menlo park calif. company said net was $ N million or N cents a share down from $ N million or N cents a share a year ago + revenue totaled $ N billion a N N increase from $ N million reflecting the company 's acquisition of <unk> earlier this year + profit also suffered because of intense discounting in its <unk> trucking business the company said + analysts had expected consolidated to post a slim profit and the company 's stock was down only N cents to $ N in new york stock exchange composite trading yesterday + they have to continue to tighten their belts said craig <unk> an analyst at goldman sachs & co + a round of futures-related program selling near the close sent the stock market lower in otherwise <unk> trading + nervousness that the market has n't seen the last of its recent volatility kept trading at a moderate pace as did anticipation of a report on the economy 's third-quarter performance + the dow jones industrial average which plunged more than N points in early trading tuesday and then recovered nearly all of its losses by the close fell N to N in the latest session + the average drifted in a trading range of about N points throughout the day + the lower <unk> was established just after the opening in a brief round of selling the upper <unk> was set at midday as scattered bargain-hunting pushed prices higher + buying interest in du pont which declared a stock split and a dividend boost and certain other blue-chip issues gave the industrial average a better performance than broader indexes + standard & poor 's 500-stock index dropped N to N the decline was the equivalent of a <unk> setback in the <unk> average + the dow jones equity market index fell N to N and the new york stock exchange composite index slid N to N + but advancing issues topped decliners by N to N on the big board despite the late sell programs resulting from stock-index arbitrage + the programs occurred against the backdrop of a late <unk> in ual which had held at slightly lower levels through most of the session amid optimism that another bidder might surface + traders said program activity was n't in evidence through most of the session however and big board volume dropped to N shares from about N million tuesday as concerns about the potential for additional sharp swings in the market kept other trading in check + people are sort of nervous to do anything in the market now + our phones are quiet around here said don r. <unk> director of investment strategy at wheat first butcher & singer inc. richmond va + the gross national product report due to be released before today 's opening is expected to show that the economy continued to expand in the third quarter at a moderate pace + the consensus of economists polled by dow jones capital markets report calls for a N N annual growth rate for gnp during the quarter + du pont which announced plans for a <unk> stock split and raised its quarterly dividend by N N jumped N N to N N + the company also posted third-quarter earnings that were in line with analysts ' forecasts + blue-chip consumer stocks also provided a lift to the industrial average + american telephone & telegraph rose N to N N in big board composite trading of N million shares chevron advanced N N to N N on N million shares woolworth rose N to N N coca-cola co. gained N to N N and eastman kodak added N to N N + but general motors dropped N N to N N + its gm hughes electronics and financial-services units both reported that third-quarter earnings were down from a year earlier + <unk> plunged N N to N N on N million shares + its third-quarter earnings were lower than analysts had forecast and the company said it had lowered its projections for earnings growth through the end of N because of planned price cuts + xerox fell N N to N N + disappointment with the company 's earnings for the quarter led prudential-bache securities to reduce its N and N earnings estimates according to dow jones professional investor report + computer associates international the most active big board issue was another victim of an <unk> sell-off + the stock fell N to N N as N million shares were traded in the wake of its report that fiscal second-quarter net income fell N N from a year ago + insurance stocks moved higher in the wake of a strong third-quarter earnings report from <unk> coming on the heels of speculation that last week 's devastating earthquake in the san francisco area would lead to higher premium rates + <unk> whose net income for the quarter exceeded most analysts ' expectations rallied N N to N N + aetna life & casualty gained N N to N N cigna advanced N to N N travelers added N to N N and american international group rose N N to N N + comprehensive care plunged N N to N N on N million shares + the company reported a third-quarter loss and said it is holding talks with its bank lenders for an extension on some overdue debt payments + tw services dropped N N to N N following the <unk> of a $ N billion junk-bond offering that would have permitted coniston partners to complete its takeover of the company + coniston said it would pursue various financing alternatives + ual stock declined by N to N after nobody surfaced to claim credit for aggressive buying tuesday by bear stearns that sent ual stock up N points in a matter of hours + tuesday 's rumored buyer coniston partners would n't comment on speculation that coniston which battled the ual board in N might challenge the board 's decision monday to remain independent + other airline stocks were mixed + amr which owns american airlines rose N N to N N usair group fell N N to N N and delta air lines rose N to N N after posting higher earnings for the september quarter + stocks that reportedly benefited tuesday from a japanese buy program handled by painewebber gave back some of their gains + procter & gamble went down N N to N dow jones fell N N to N N and rockwell international dropped N N to N + however atlantic richfield <unk> its <unk> advance in the previous session and added N to N N + general mills gained N N to N N + goldman sachs placed the stock back on its list of recommended issues raised its N earnings estimate and recommended that its clients shift funds from kellogg to general mills + kellogg dropped N N to N N + manville advanced N to N + the company offered to purchase $ N million of convertible preferred stock from the trust that handles its payments to asbestos victims + di giorgio gained N to N N after the company said it is starting negotiations with unidentified parties interested in acquiring its units + investor arthur goldberg is pursuing a $ <unk> takeover offer + esselte business systems rose N to N N + esselte ab of sweden offered $ N a share for the N N of the company it does n't already own + public service of new hampshire went up N to N + northeast utilities boosted its offer to acquire the company by $ N million to $ N billion + <unk> which declared a 2-for-1 stock split and boosted its quarterly dividend by N N added N to N N + also the company posted improved third-quarter earnings + the american stock exchange market value index fell N to N + volume totaled N shares + mission resource partners lost N N to N N + the partnership which had <unk> takeover offers said it failed to receive any adequate bids for all of its operations but is reviewing offers for individual properties + japan is going on a <unk> binge that could make its trade surpluses even harder to shrink + its capital spending is growing at double-digit rates for the second year in a row and its <unk> producers of everything from cars to computer chips are rushing to expand capacity modernize factories and develop new products + the boom 's so huge says <unk> <unk> an economist at <unk> research institute it makes you think of the golden <unk> when japan developed rapidly + the more factories and robots japanese manufacturers add the more they will be able to export and the less their domestic customers will need to import + at <unk> inc. for example sales are up nearly N N this year so the maker of cameras and computer printers is doing what any japanese company would do under the circumstances it is increasing capital spending by N N + it is building among other things a new <unk> factory in western japan that can produce up to N printers next year + some N N of them are to be exported to the u.s. + even companies in <unk> industries <unk> with world-wide overcapacity are joining the boom + japan 's steelmakers are raising capital spending N N this year to $ N billion + hitachi <unk> corp. a <unk> buried in debt just a few years ago will build a machinery plant its first expansion in N years + so big is the <unk> boom that japanese companies ' outlays in japan topped american companies ' domestic outlays by $ N billion to $ N billion in the N months ended march N even though japan 's total output of goods and services is less than two-thirds america 's + from a financial standpoint the boom could n't come at a better time + many japanese companies expect record profits this fiscal year and japanese interest rates though up a bit recently are still low + and in a business system where shareholders have few rights and expect only modest dividends companies can <unk> their profits back into plant and equipment + but some economists and government officials here are n't <unk> + they fear that the boom may be too big for japan 's or anyone else 's good + it 's an explosive <unk> thrown at the world says kenneth <unk> senior economist at the tokyo unit of deutsche bank group + the ministry of international trade and industry is so concerned that it recently took the unusual step of urging japanese auto companies to exercise caution in capital spending + <unk> officials hope to avoid <unk> source of trade <unk> with the u.s. even though export restraints currently limit japanese car exports to the u.s. + not everyone is worried however + some economists and many japanese companies are <unk> by the warnings + the investment boom is mainly sparked they say by strong domestic demand and is n't likely to increase exports sharply + moreover much investment is n't aimed at increasing capacity + according to a survey of some N large companies by the japan development bank expanded capacity is the goal of just N N of the outlays for manufacturers alone the figure is N N + the manufacturers said N N of their spending is designed to improve products or add new ones N N is to cut costs N N is for research and development and the rest is for maintenance and other purposes + but the <unk> remain <unk> + with japan running enormous trade surpluses against much of the world they think that japan should meet the increased domestic demand by importing more + and eventually they contend domestic demand will weaken forcing companies to <unk> exports again + if there 's a further drive to export says <unk> <unk> an economist at the japan development bank that 'll be a problem + even in the short run the investment boom could <unk> a disturbing trend japanese exports are showing surprisingly little tendency to ease + japanese auto makers for example are increasing their production capacity in the u.s. the additional production should in part replace imported vehicles with locally manufactured ones + but although japanese companies increased their u.s. auto output by N N from january to september compared with the year-earlier period their exports to the u.s. will drop only N N this year nikko research center estimates + in contrast to previous economic <unk> japanese auto companies are n't just trying to boost production + many are pouring money into developing high-quality products to target affluent consumers and to some extent to avoid direct combat with cheaper cars from south korea and taiwan + others are replacing older facilities with flexible assembly lines on which different models can be turned out at once + so many companies are investing in high-tech machinery that <unk> ltd. a robot maker also had to build a new plant + the buildup is making japan clearly more efficient more <unk> advanced and more competitive declares a western diplomat in tokyo + but whatever its effects on exports and imports japan 's investment boom during the past two years has been <unk> at least partly by soaring domestic demand + japan 's marathon economy growing at N N this year is now in its <unk> month of expansion and some economists are betting that the boom will <unk> the record <unk> expansion in the late 1960s + japanese consumers are increasingly eager to spend their money especially on high-priced goods such as <unk> television sets and luxury cars + nissan motor co. 's domestic auto sales are up N N this year largely because its expensive <unk> <unk> and <unk> models are in heavy demand + one dealer told me that if he had more cars he 'd sell them right away says <unk> <unk> nissan executive vice president + he adds that the company is trying to keep up with demand by <unk> its employees + similarly honda motor co. 's sales are so brisk that workers <unk> they have n't had a saturday off in years despite the government 's encouragement of more leisure activity + with demand growing and workers in short supply many japanese manufacturers are spending heavily on <unk> + among them are the <unk> which had <unk> their shipyard work forces to cut costs during a prolonged slump in demand but now are <unk> an increased share of the strengthening global market + <unk> heavy industries co. a medium-sized <unk> expects its sales to increase N N this year largely because of rising demand for oil <unk> + once one japanese company steps up its investments the whole industry follows + because most businesses put market share above profitability to let a competitor 's addition to capacity go <unk> is to concede defeat + the emphasis on market share is evident at daikin industries ltd. japan 's biggest maker of industrial air <unk> + seeing new office buildings <unk> up and its sales soar daikin is building another plant which will lift its production capacity N N + the expansion is aimed not just at meeting demand but also at expanding the company 's market share to N N from N N currently + besides daikin 's major competitors hitachi ltd. and mitsubishi heavy industries ltd. are all adding production lines a daikin spokesman says + until now we were trying to increase productivity with the facilities we already had + but we ca n't produce enough anymore + the competition is even more <unk> in the auto industry where companies are racing one another in a world-wide market + nissan aims to expand its N N share of the market to N N by spending $ N million on a plant in southern japan that could make as many as N cars a year + meanwhile toyota motor corp. 's $ N million buildup is increasing its annual capacity by N cars and honda is spending $ N million on expansion + mazda motor corp. is still considering its options but it <unk> aims to double its annual domestic sales to N cars in the next four years + those who are n't worried about how japanese manufacturers ' investments will affect trade note that many new products are n't <unk> for imports + although imports account for less than N N of beer sales in japan <unk> <unk> ltd. which has been gaining share with its popular dry beer plans to fend off japanese competitors by pouring $ N billion into facilities to <unk> N N more beer + but <unk> development will make japanese companies stronger and big investments in domestic industries such as beer will make it even tougher for foreign competitors to crack the japanese market + moreover much of the investment boom is in high-tech fields in which japanese companies have only limited foreign competition so more investment practically <unk> more exports + toshiba corp. for example is spending $ N million on two new plants to build <unk> dynamic random access memories the next generation of computer chips + the product is n't widely used yet but toshiba which has already beaten everyone else in producing the <unk> <unk> <unk> believes that its early investment will <unk> its chances of beating its competitors again + it 's important to gain leadership a toshiba spokesman says + meanwhile toshiba 's japanese rivals hitachi fujitsu ltd. and nec corp. are n't sitting still + after doubling production in one plant nec is spending $ N million to build another plant that in two years will be able to make a million <unk> <unk> a year + the new chip plants wo n't be excessive investment says <unk> <unk> an nec vice president + we have enough products to make and the markets to sell these products + some of japan 's goods being produced as a result of the investment boom are already successful overseas + toyota 's $ N lexus automobile a luxury model that it started shipping to the u.s. only last month is <unk> up orders at a time when <unk> luxury-car sales are slow + toyota plans to raise lexus exports when a new plant starts up next year + what if its sales weaken someday + japanese companies have a <unk> competitor attitude + if excess capacity develops they say not everyone will suffer + the losers will be those with the least attractive products and many of them analysts think will be foreign companies + benjamin franklin federal savings & loan association said it plans to restructure in the wake of a third-quarter loss of $ N million or $ N a share reflecting an $ N million addition to loan-loss reserves + the <unk> ore. thrift said the restructuring should help it meet new capital standards from the financial institution reform recovery and enforcement act + a year ago benjamin franklin had profit of $ N million or N cents a share + in over-the-counter trading yesterday benjamin franklin rose N cents to $ N + the company said the restructuring 's initial phase will feature a gradual reduction in assets and staff positions + the plan may include selling branches consolidating or eliminating departments and <unk> down or <unk> of unprofitable units within N months + initially the company said it will close its commercial real-estate lending division and stop <unk> new leases at its commercial lease subsidiary + details of the restructuring wo n't be made final until regulators approve the regulations mandated by the new federal act the company said + <unk> corp. a maker of mainframe computers reported a sharp decline in net income for its third quarter citing <unk> by competitors and adverse effects from a strong u.s. dollar + net income fell N N to $ N million or N cents a share from $ N million or N cents a share in the year-ago period + revenue rose N N to $ N million from $ N million + <unk> 's results were somewhat worse than expected + jay stevens an analyst with dean witter reynolds said he expected the sunnyvale calif. company to earn N cents a share for the quarter and said the firm 's weaker profit was partly the result of increased competition from international business machines corp. <unk> 's principal competitor for mainframe sales + <unk> ltd. declared a N N stock dividend payable dec. N to stock of record nov. N + the <unk> n.y. maker of consumer <unk> and industrial products also declared a quarterly cash dividend of N cents a share with the same payable and record dates + the cash dividend paid on the common stock also will apply to the new shares the company said + the move rewards shareholders and should improve the stock 's liquidity <unk> said + the company has about N million shares outstanding + in new york stock exchange composite trading yesterday <unk> 's shares closed at $ N a share unchanged + federal health officials are expected today to approve a program granting <unk> access to the drug azt for children with acquired immune deficiency syndrome + announcement of the approval is expected to be made by louis sullivan secretary of health and human services + the clearance by the food and drug administration comes after two years of restricted access for the youngest victims of aids to the only <unk> drug yet cleared to treat the fatal disease + the drug will be given treatment <unk> new drug status a label <unk> to drugs believed effective but lacking formal approval + the move will make the drug available free of charge for a time to children with the disease and symptoms of advanced infection + adults with aids have had access to azt since fda approved the drug 's usage for adults in march N + but despite more than two years of research showing azt can relieve <unk> and other symptoms in children the drug still lacks federal approval for use in the youngest patients + as a result many youngsters have been unable to obtain the drug and for the few exceptions insurance carriers wo n't cover its cost of $ N a year + so far aids has <unk> N children under age N with many times that number believed to carry the infection without symptoms + to date N of those children have died according to the federal centers for disease control + mothers of young aids patients expressed <unk> satisfaction + <unk> <unk> it 's happening + it should have happened sooner said elizabeth <unk> a los angeles mother and activist who contracted the aids virus through a blood <unk> and <unk> it to two of her children + one of them a daughter <unk> died a year ago at age seven after her parents unsuccessfully pleaded for the drug + i could get azt says mrs. <unk> who bears her infection without any symptoms + but my daughter could n't until she was too ill to take it + to watch your child die is an <unk> experience + her son healthy and <unk> currently takes no medication + the delay in getting azt to children has been blamed on a combination of factors + traditionally the medical establishment has waited two years to approve adult <unk> for pediatric uses because of a combination of conservative safety standards and red tape + <unk> critics have charged azt 's maker <unk> wellcome co. with corporate <unk> because children account for just N N of the patient population and hence a small part of the large and lucrative market + wellcome has replied that it is moving ahead to <unk> the relevant data and recently promised to develop a pediatric <unk> form easier for youngsters to take + still all this comes nearly a year and a half after philip <unk> of the national cancer institute offered evidence that azt could reverse the <unk> of aids <unk> sometimes prompting dramatic recovery of <unk> levels and <unk> of lost motor skills + since then roughly N pediatric patients have received the drug in his program + to some mothers the expected fda action is a <unk> reminder of what might have been + my first reaction is i do n't understand why it 's taken so long + why has it taken people so long for people to understand pediatric aids is a major problem asked <unk> <unk> whose son samuel died six years ago at age three victim of a tainted <unk> + similar <unk> were voiced on capitol hill + while i 'm pleased the fda is finally <unk> azt for children it 's taken much too long to get to this point said rep. ted weiss + why did it take <unk> wellcome so long to apply for treatment <unk> new drug status the new york democrat asked + let 's not forget this is the same company that has been <unk> with this drug for N N years mr. weiss added + mrs. <unk> who is a <unk> of the pediatric aids foundation based in santa <unk> calif. <unk> neither bureaucratic nor corporate <unk> + there 's no finger to be pointed she said + the crucial thing is that we learn our lesson well and to make sure other experimental drugs like bristol-myers co. 's <unk> do n't follow the same frustrating course as azt + aids <unk> which gradually <unk> children 's ability to speak walk and think is often the most striking aspect of the pediatric syndrome + for some patients azt has restored the ability to ride a bicycle or solve <unk> giving back a piece of their <unk> if only temporarily + it 's impossible to <unk> how much this means to the families of these patients said samuel <unk> director of the national cancer institute and a main developer of azt + avon <unk> & truck corp. said it declared a dividend of one warrant for each three shares of common stock + currently avon based in santa <unk> calif. has N million common shares outstanding + about N million class c warrants were issued the company said + each of the class c warrants will enable the holders to purchase one share of common stock at $ N + the warrants may be exercised until N days after their issue date + avon also said it will issue an additional N of the class c warrants to holders of its class a class b and <unk> warrants + issuance of those warrants will be at the rate of one-third warrant for each warrant exercised + the big board plans to launch its own vehicle for program trading today amid growing controversy over the practice + the new baskets of stocks will allow big investors to buy or sell all N s&p index stocks in a single trade + the exchange argues that the product which the sec temporarily approved yesterday will help ease rather than worsen any volatility in the stock market + sec chairman breeden said he would consider imposing circuit breakers to halt program trading during sharp swings in the market + kemper financial services has stopped executing its stock trades through four big securities firms because of their involvement in program trading which kemper and others say is <unk> the market + the main capital-gains tax plan in the senate is n't winning support from democrats who favor a reduction + the trend is making proponents less optimistic a tax cut will pass + bethlehem steel 's profit plunged N N in the third quarter hurt by higher costs and lower shipments to key clients + also armco and national intergroup had lower operating profit in steel marking what may be the end of a two-year industry boom + columbia s&l posted a quarterly loss of $ N million as the beverly hills thrift <unk> from new industry rules and turmoil in junk bonds + <unk> plans to aggressively discount its major beer brands setting the stage for a price war as the beer industry 's growth <unk> + ps new hampshire received a sweetened bid from another suitor united illuminating which valued its new proposal at $ N billion apparently <unk> all others so far + financial markets <unk> with stock prices <unk> lower bonds <unk> up and the dollar almost unchanged + the dow jones industrials closed off N points at N + fed chairman greenspan said the central bank can wipe out inflation without causing a recession but doing so will <unk> short-term pain + gm 's hughes electronics unit said profit slid N N in the third quarter + the finance unit gmac said net fell N N but <unk> 's profit rose N N + campeau reportedly may receive a $ N billion offer for bloomingdale 's from tokyu department store of japan + campeau declined to comment + ual 's pilots and machinists unions appear to hold the key to any future takeover bid for the airline + provigo plans to sell all non-food operations to <unk> on its retail and wholesale grocery business + also chairman pierre lortie resigned + westinghouse expects operating margins of over N N and sharply higher earnings per share next year due to a major restructuring + some major u.s. trade partners quickly rejected a compromise proposal by bush to <unk> trade and reduce <unk> subsidies + markets + stocks volume N shares + dow jones industrials N off N transportation N off N utilities N up N + bonds shearson lehman hutton treasury index N up + commodities dow jones futures index N up N spot index N off N + dollar N yen up N N marks off N + gorbachev said moscow wo n't intervene in east bloc moves to democracy + the kremlin leader on the first day of a <unk> official visit to <unk> assured finland 's president that the soviet union has no moral or political right to interfere with moves toward democracy in poland hungary or elsewhere in eastern europe + in moscow the soviet state bank announced a N N devaluation of the ruble against the dollar for private transactions in an apparent attempt to curb a black market for hard currency + the action will establish a two-tier exchange rate + workers at six mines in arctic circle coal fields called strikes over a series of economic and political demands + the move <unk> a law approved in moscow this month banning such <unk> + the house failed to override bush 's veto of a bill easing abortion funding + the chamber voted N N votes short of the two-thirds majority needed to <unk> the president 's veto of legislation renewing support of medicaid abortions for poor women who are victims of rape and incest + the roll call was considered an illustration of the limits of power that the <unk> abortion-rights movement faces + the legislation was part of a $ N billion measure funding the departments of labor education and health + michigan 's senate passed a bill requiring <unk> to get parental consent for an abortion and pennsylvania 's house cleared a measure banning abortions after the <unk> week of pregnancy + the fda is expected to approve today a program granting access free of charge to the drug azt for children with aids + adults have had access to the only approved <unk> drug since N + research shows azt can relieve <unk> and other symptoms in children N of whom are known to have been infected + congress sent to bush a $ N billion emergency package to assist in the recovery from last week 's california earthquake and from hurricane hugo + the action came after the senate approved the house-passed measure + in the san francisco bay area more than N people were homeless and <unk> threatened more houses + house-senate conferees agreed to continue production of grumman corp. 's f-14 jet and to provide more than $ N billion during the current fiscal year to develop a <unk> <unk> system + the final package is expected to be announced within the next week + the white house has decided to seek changes in pesticide law that are aimed at speeding the removal of harmful chemicals from the food supply + the changes which could be announced as early as today would apply to pesticides and other <unk> found on fresh and processed foods officials said + east german leader krenz said he was willing to hold talks with opposition groups pressing for internal changes + the communist party chief facing what is viewed as the nation 's worst unrest in nearly N years also said he would allow east germans to travel abroad more freely but made clear that the berlin wall would remain + a <unk> christian alliance accepted an <unk> proposal aimed at ending lebanon 's 14-year-old civil war + the move by the coalition of political parties and lebanon 's largest christian <unk> isolated military chief aoun who has rejected the plan which includes political changes and a syrian troop withdrawal from <unk> + baker offered to review israel 's suggested changes to his proposal for direct <unk> talks + but the secretary of state advised israel that attempting to overhaul the <unk> plan <unk> delaying the negotiations aimed at mideast peace + nato defense ministers said the <unk> alliance continues to need a strong nuclear strategy despite political changes in eastern europe + the ministers concluding a two-day meeting in southern portugal welcomed moscow 's <unk> to cut its military forces but urged the soviets to do more to slash <unk> nuclear weapons + the justice department indicated a possible challenge to a court order allowing former national security adviser <unk> to subpoena <unk> reagan 's personal papers for use in the defense case against iran-contra charges + a department spokesman said the ruling raised a serious question about the office of the president + bush said washington would continue a trade <unk> against nicaragua declaring that the central american country <unk> an unusual and extraordinary threat to the security of the u.s. + meanwhile secretary of state baker said the u.s. <unk> to moscow over shipments of east bloc arms to <unk> rebels from managua + a <unk> <unk> a <unk> <unk> in <unk> <unk> brazil and at least N people most of them children were missing and feared dead + the city 's mayor vowed to take legal action against developers who had been <unk> at the crest of the hill + czechoslovakia 's premier said he supports broad political and economic restructuring but ruled out any dialogue between <unk> 's communist government and independent human-rights or dissident groups + <unk> <unk> ending a two-day visit to <unk> pledged changes in czechoslovakia including <unk> travel to the west + died mary <unk> N novelist and literary critic in new york city of cancer + <unk> harper N founder and <unk> executive of interpublic group of cos. in oklahoma city of a heart attack + <unk> coors co. said william k. coors chairman assumed the additional responsibilities of president succeeding jeffrey h. coors + jeffrey coors N years old had been president since N when he succeeded his father joseph in the job + but the brewer said jeffrey coors voluntarily gave up the position to focus more of his energy on coors technology co. a small unit of coors he has run for several years + a coors spokesman said the company does n't believe the move will further increase william coors 's influence or reduce the influence of jeffrey coors peter coors or joseph coors jr. who run the company 's three operating units + it certainly was n't intended to be a <unk> the spokesman said + pete and jeff and joe jr. have taken over the reins and are doing most of the work + we do n't think this will affect that + jeffrey peter and joseph jr. are brothers + william coors is their uncle + jeffrey peter joseph jr. william and joseph sr. constitute the company 's board + peter coors runs the coors brewing co. unit the nation 's <unk> brewery that accounted for $ N billion of <unk> coors 's $ N billion in N sales + joseph jr. runs coors <unk> co. the other operating unit which had about $ N million in N sales + dun & bradstreet corp. said business failures fell N N to N in the third quarter from N in the year-earlier period + in the first nine months of this year business failures dropped N N to N from N + except for a few spots notably georgia virginia and michigan failures declined almost across the board according to the business information services company + <unk> <unk> a business failure as a company that closes with losses to creditors + the current decline in failures continues a trend begun in late N <unk> said + the drop accelerated in this year 's third quarter <unk> an overall lack of stress in the u.s. economy the company said + failures in seven of nine regional areas fell more than N N in the nine months + the south atlantic states were the only region to report an increase in <unk> up N N to N from N + this occurred partly because of more competition as the number of new businesses surged + the only industry sector to report more business failures for the nine months was the finance insurance and real-estate sector where <unk> grew N N to N from N + the troubled savings-and-loan industry and subsequent stress in real-estate businesses fueled <unk> in this sector <unk> said + a major tokyo newspaper reported that a japanese department store concern is planning to offer about $ N billion to buy bloomingdale 's + campeau corp. the chain 's owner declined to comment on the report + a spokeswoman said toronto-based campeau has received <unk> of interest in bloomingdale 's but she declined to comment on whether any actual bids had been made + <unk> <unk> <unk> japan 's leading economic newspaper reported wednesday that tokyu department store co. is planning to team up with u.s. and western european financing to buy the new york-based retail chain which campeau has put up for sale + the service did n't identify its tokyu sources + this is the first of many rumors we expect to hear during the sale 's process said a bloomingdale 's spokesman + we wo n't comment on them + tokyu executives were n't available for comment early thursday morning in tokyo + campeau 's chairman robert campeau said at its annual meeting in july that he valued bloomingdale 's at $ N billion + among previously disclosed possible bidders is bloomingdale 's chairman marvin traub who has aligned himself with drexel burnham lambert inc. and blackstone group + investment bankers in tokyo confirmed that tokyu department store is one of several japanese companies that has been approached by representatives of a management committee headed by bloomingdale 's mr. traub + but they said detailed financial figures have n't been passed yet to any prospective buyers + nobody is going to make a real bid before the middle of november said one investment banker familiar with the discussions in japan + tokyu is one of the potential buyers who might raise its hand + but it 's in very early stages still + bloomingdale 's is a <unk> chain acquired last year by campeau in its $ N billion acquisition of federated + bloomingdale 's does an estimated $ N billion in annual sales + the sale of bloomingdale 's is a condition of efforts by toronto-based olympia & york developments ltd. to arrange $ N million in bridge financing for campeau which disclosed last month that its retailing units federated department stores inc. and allied stores corp. were strapped for cash + <unk> owned by toronto 's <unk> family is also <unk> major restructuring and refinancing of campeau a toronto-based real estate and retailing company + one executive familiar with the bloomingdale 's situation said no book has been issued regarding bloomingdale 's there are no projections so i doubt very much whether any bid has been made + separately a campeau shareholder filed suit charging campeau chairman robert campeau and other officers with violating securities law + the suit filed in u.s. district court in manhattan seeks class-action status + the suit <unk> the retailer and several of its officers of making false and misleading statements about the company 's business affairs + the suit says the company failed to disclose material adverse information about its financial condition + a spokesman for the company said campeau has n't seen the suit and declined to comment + mccaw cellular communications inc. must extend its offer for lin broadcasting corp. because it has not yet announced committed financing sufficient to complete the bid lin said in new york + according to securities and exchange commission rules mccaw is required to keep its offer for the <unk> and broadcasting concern open for at least five business days after the announcement of the financing lin said + mccaw 's offer is scheduled to expire tomorrow + last week mccaw said it obtained firm financing commitments from three major banks in regard to its bid to control lin broadcasting + the banks jointly committed $ N billion of financing subject to certain conditions mccaw said + a spokesman for mccaw said the company was moving forward with our financing + he added that hopefully lin will conduct a fair auction + mccaw wants to buy N million shares of lin for $ N each or $ N billion which would result in mccaw 's owning N N of lin + the offer is in limbo however because lin has agreed to merge its <unk> businesses with bellsouth corp + in national over-the-counter trading yesterday lin rose N cents to $ N + <unk> institute declared a 2-for-1 split of its common stock payable nov. N to stock of record nov. N + the clinical testing services holding company is based in san <unk> <unk> calif + stateswest airlines phoenix ariz. said it sent a more detailed merger proposal to <unk> mesa airlines + <unk> <unk> mesa has consistently rejected stateswest 's offers and early this week said its board would n't give the proposal further consideration calling it vague and <unk> because it did n't describe the source of funds or the specific terms of stateswest securities which were part of the offer + the new letter <unk> to do this saying that in addition to $ N a share in cash stateswest would offer one share of new N N convertible preferred stock of stateswest it values at $ N a share + it also said the cash portion of the transaction would be financed with stateswest 's own cash and short-term investments plus debt and other financing arranged through <unk> brown & co. the company 's investment banker + in national over-the-counter trading yesterday mesa closed at $ N up N cents + stateswest asked mesa to <unk> by oct. N + mesa president larry <unk> said his board had received stateswest 's most recent offer and was reviewing it + spiegel inc. citing continuing improvement in the apparel market said third-quarter net income jumped N N from the soft year-earlier period on an N N increase in revenue + the catalog retailer reported net income of $ N million or N cents a share up sharply from $ N million or N cents a share a year earlier + revenue rose to $ N million from $ N million + spiegel said margins improved because its inventory position this year did n't need the costly <unk> required to trim last year 's <unk> levels + a spokeswoman said the apparel market <unk> in the first half of N then began showing improvement in the second half of last year + we 've seen continued improvement in N she said + the year-ago quarter 's results were <unk> by expenses associated with spiegel 's $ N million acquisition of <unk> eddie <unk> spiegel noted + in addition the company said ongoing cost-cutting efforts contributed to the latest period 's earnings <unk> + spiegel is <unk> by the <unk> family of west germany + in national over-the-counter trading the company 's shares climbed N cents to $ N + for the latest nine months spiegel 's net climbed a solid N N to $ N million or N cents a share from $ N million or N cents + unlike the quarter 's results which were based on roughly equal shares outstanding nine-month per-share figures reflect an increase in average common shares outstanding to N million from N million + nine-month revenue was $ N billion up N N from $ N million + the bad news in the junk bond market yesterday was that tw services a group of restaurant chains became the latest prospective issuer to get a cold shoulder from bond buyers + the good news to fans of stable credit at least is what the rejection says about the state of mind of junk buyers + apparently they are learning to say no to excess risk + coniston partners which with related entities controls N N of tw had been planning to sell $ N billion of junk bonds among other things to finance their acquisition of the remaining public shares + but coniston a new york partnership managed by the firm of <unk> <unk> & oliver yesterday announced that in view of unsettled conditions in securities markets the offering would be postponed and restructured + what was n't mentioned is that coniston and its investment banker donaldson lufkin & jenrette just completed a <unk> road show for the purpose of marketing the bonds + and investors at least for now took a pass + tw 's junk bonds were n't as junk bonds go unusually weak + its fast-food restaurants including <unk> 's <unk> 's <unk> 's and el <unk> <unk> the only significant fast-food chain to specialize in <unk> chicken are stable <unk> and growing + but unless they continued to grow tw based in <unk> n.j. would have run into trouble + until recently such <unk> <unk> deals were routine + but people do n't buy anything on expectation anymore says jack <unk> who manages the high-yield fund of <unk> financial services + investors he adds are getting <unk> + the tw buy-out may yet be financed + there is nothing wrong with the company says coniston principal paul <unk> + the <unk> he says is that the junk market is n't as deep as before + tw 's <unk> meeting was postponed from tomorrow to nov. N + by then dlj hopes to be able to sell <unk> junk bonds + <unk> <unk> & oliver is likely to contribute more than the $ N million in equity it had planned on + banks may contribute more senior debt + and the total amount of junk financing will be reduced + a dlj banker putting a best possible face on it asserts that very few people said they did n't like the credit quality + people said they did n't think a billion-dollar deal would trade + but trading risk stems from credit risk + and by adding equity dlj would seem to be acknowledging that credit risk was a concern + indeed the dlj banker says in the <unk> capital structure cash coverage of interest will <unk> improve + as he sums it up we are listening to the market + what is it to borrow a term from coniston that so unsettled the market + some of the same risks that were cited and seemingly ignored in dozens of previous junk offerings + the tw prospectus says that if the acquisition had been completed earlier pretax earnings would have been insufficient to cover its fixed charges including interest on debt securities by approximately $ N million in the first six months of N + tw notes as many junk issuers do that adjusted to eliminate <unk> charges tw would have run a cash surplus in this case of $ N million over six months + but such calculations ignore the <unk> charge of depreciation taken to allow for the gradual wearing out of french <unk> deterioration of stores and the like + in fact dlj says the company <unk> capital expenses of about $ N million a year + tw 's pitch was that sales and earnings at its restaurants have risen steadily and that people wo n't stop eating during a downturn + but they wo n't necessarily eat at <unk> 's + the fast-food business is intensely competitive notes wertheim schroder analyst john <unk> + prospective bond buyers noted that tw historically has <unk> because it has been willing to spend aggressively on remodeling restaurants and <unk> <unk> + we were concerned that they were n't going to generate enough cash for capital spending and also to pay down debt says a big investor in high-yield debt + dlj argues that tw could if necessary cut capital spending since half of what it plans to spend is for growth rather than maintenance + but investors noted that under the <unk> offering tw would have needed to grow to meet its debt payments + its calculations for meeting cash charges ignore $ N million a year in interest on <unk> or zero-coupon debentures which ultimately would have had to be paid + the prospectus notes there can be no assurance that future growth will continue at past levels + in the recent past bond buyers did n't seek such assurance + now apparently they do + tw services + nyse symbol tw + business restaurants + year ended dec. N N \* + revenue $ N billion + net income $ N million $ N a share \*\* + third quarter sept. N N net loss N cents share vs. net income N cents a share + average daily trading volume N shares + common shares outstanding N million + \* includes results of <unk> 's inc. acquired in september + \*\* includes $ N million write-down of assets and takeover defense costs + <unk> thatcher must be doing something right her political enemies are <unk> <unk> than ever + mrs. thatcher who was practicing the <unk> school of politics years before mr. bush encountered it has made clear her opposition to <unk> britain 's free-market policies to suit the bureaucrats in brussels + in return mrs. thatcher is <unk> from fleet street to paris as an <unk> + well it now turns out that mrs. thatcher had to travel across the globe to the <unk> commonwealth summit in kuala lumpur to <unk> the <unk> order of consensus builders + a <unk> <unk> in malaysia <unk> the <unk> guardian + she can no longer be trusted to <unk> in a <unk> that is <unk> fashion when abroad + <unk> + canada 's brian <unk> and australia 's bob <unk> the paper said were <unk> + the london times said she had <unk> protocol + as usual her <unk> was saying what she thought + she issued a separate statement <unk> herself from a commonwealth document <unk> the political value of imposing sanctions against south africa + while supporting the commonwealth in utterly <unk> apartheid her statement urged it to encourage change rather than <unk> further punishment on the country 's black population + actually there is a consensus somewhere on sanctions in may a <unk> poll found that most south african blacks N N oppose economic sanctions + still mrs. thatcher had once again gone against the grain + malaysia 's prime minister <unk> <unk> <unk> if everybody else puts out their left foot and you put out your right foot you are out of step + mrs. thatcher if it 's one against N i 'm very sorry for the N + if indeed mrs. thatcher has one opponent that could throw her off political course it is britain 's <unk> <unk> inflation problem + we can not however join the political chorus that as one <unk> how <unk> it is that mrs. thatcher refuses to get along by going along + it is <unk> to see at least one world figure who knows what she believes in and is not inclined to <unk> compromise those <unk> + perhaps mrs. thatcher understands better than those <unk> at her style that ultimately history and britain 's voters will decide who is right about europe <unk> south africa or running britain 's economy + follow with care + work hard play hard is advice best taken with some caution for it can bring fitness and success or a state of total <unk> + edward f. <unk> + double check + the guest paid his bill at the resort hotel and as he <unk> he noticed a sign saying have you left anything + the man went back and spoke to the desk clerk that sign is wrong he said + it should read have you anything left + sam <unk> + after being <unk> in tuesday 's selling <unk> the nasdaq over-the-counter market <unk> itself off and moved on in moderate trading + but while the composite gained N to N many issues did n't participate in the advance + it was a mixed bag said richard bruno who heads over-the-counter trading at painewebber + we played <unk> in some areas and sold off in some others + volume totaled N million shares which is about average for the year + of the N issues that changed hands N advanced and N declined + big financial stocks carried the day + the nasdaq financial index rose N to N + meanwhile the nasdaq N index of the big <unk> stocks basically stood still easing N to N + despite the composite 's advance some trading officials are <unk> optimistic that the market is on the road to recovery + <unk> <unk> head of over-the-counter trading at kidder peabody said it is difficult to make predictions based on yesterday 's trading volume + the advance felt more like a technical bounce he said + the market acted better but it was n't a tremendous comeback mr. <unk> observed + if we get a decent rally today maybe the buyers will come back + if <unk> <unk> <unk> is right a <unk> may come in handy during the next few sessions + the president of <unk> <unk> mr. <unk> expects the market to be very <unk> for a while + there 's a lot of uncertainty out there and it will cause a lot of swings he said + among active stocks mci communications rose N to N on N million shares <unk> graphics added N to N N on turnover of N million shares + apple computer dropped N N to N N on one million shares + almost one million shares of sun microsystems changed hands but the issue was unchanged at N N + biotechnology issues were strong + amgen advanced N N to N chiron jumped N to N N <unk> gained N to N N and <unk> rose N to N N + the american depositary receipts of jaguar jumped N to N N on turnover of N million + ford motor said it raised its stake in the british car maker to N N of the ordinary shares outstanding + in a securities and exchange commission filing ford said it holds N million ordinary shares + the company has said it is prepared to make a bid for all of the shares outstanding of jaguar if british government restrictions to such a transaction are removed + another takeover target lin broadcasting rose N to N N on N shares + its suitor mccaw cellular also added N to N N on N shares + other stocks were affected by corporate earnings + <unk> which recently said third-quarter net income rose to N cents a share from a penny a share a year ago gained N N to N N on N shares + the N results included a one-time gain + <unk> <unk> rose N or N N to N N on volume of N shares + the maker of software products and services which had a net loss in the N third quarter earned N or a penny a share in this year 's quarter + it was nasdaq 's biggest percentage <unk> + star states plunged N N to N N on N shares + the company suffered a $ N million loss in the third quarter compared with net of $ N million a year earlier + <unk> dropped N N to N N on N shares + in its <unk> quarter ended sept. N the <unk> maker earned N cents a share up from eight cents a share in the N quarter which included an extraordinary credit + <unk> care health fell N N to N N on N shares + the company 's third-quarter earnings also rose to N cents a share from eight cents a share a year ago + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + one day last march cbs sports president neal pilson and olympics <unk> barry frank met for lunch at the <unk> club here + mr. frank told mr. pilson that olympics officials wanted $ N million or more for tv rights to the N winter games in norway + the cbs official said that price sounded fine + at that price cbs was the only player at the table when negotiations with the international olympic committee started in toronto aug. N + dick pound a committee member began by disclosing that abc and nbc had refused to even bid + then he asked mr. pilson to raise his offer anyway if we can have a number that starts with a three you can have a <unk> + mr. pilson and his team <unk> in a <unk> and took just N minutes to return with a $ N million offer + mr. pound responded it 's a deal + a <unk> mr. pilson announced his <unk> coup at a news conference that afternoon + mr. pilson 's rivals at abc and nbc <unk> at the price + how could cbs get pushed into <unk> itself + well cbs mired in the ratings <unk> and looking to sports as a way out wanted to close the deal immediately and block its rivals from getting another chance to bid + but mr. pilson has been put in the uncomfortable role of setting off a bidding frenzy for sports rights a frenzy that the networks had hoped to avoid + the price of <unk> has gone up <unk> charles m. <unk> the college football association 's executive director + with cbs inc. on a spending spree that may top $ N billion for four years of major sports events the new <unk> of <unk> could jolt the entire broadcast business + cbs itself could run up losses of a few hundred million dollars on four years of various sports if its big gamble goes wrong + abc a unit of capital cities\/abc inc. and general electric co. 's national broadcasting co. also risk losses if they <unk> cbs for other contracts + while rights fees head <unk> ad rates wo n't + advertisers already are <unk> at higher prices + the networks are paying too much for rights warns <unk> paul <unk> of young & rubicam + if they ask advertisers to absorb the costs they 're likely to lose all but a few who need sports above all + viewers may not be <unk> either + soaring rights fees will lead to an even greater clutter of commercials + at the same time some sports events will move off free television and onto cable or <unk> where half the nation 's tv homes ca n't see them + cbs has changed the rules by throwing out the old basis for sports bids that is can the network alone make a profit on it + mr. pilson <unk> the <unk> benefits of positive press <unk> affiliate stations enthusiastic advertisers and huge audiences that might stick around to watch other cbs programs when the game is over + the billion-dollar question is how much are those benefits worth + some tv people doubt they will <unk> and argue that even if they do they wo n't offset the multimillion-dollar deficits that cbs could run up + as we 've seen in the '80s says roger werner the president of the espn sports channel those deals can turn sour if the numbers do n't work + and three years later in a sea of red ink the heroes can find themselves with a lot of explaining to do + cbs <unk> top sports to <unk> the fact that they are n't supporting affiliates viewers and advertisers charges thomas h. <unk> who was ousted as chairman of cbs inc. after laurence a. tisch bought a N N stake in the company and took over three years ago + they lost the entertainment crown and they needed one + and they 've bought one + on just three big deals for four years of baseball and for the olympic winter games in both N and N pilson bid a total of $ N billion + that 's well over half a billion dollars more than abc and nbc were willing to pay + after N the winter and summer olympics will be held two years apart with the revised schedule beginning with the winter games in N and the summer games in N + now mr. pilson a former college basketball player who says a good negotiator needs a level of focus and intellectual attention similar to a good <unk> is facing the consequences of his own <unk> + next month talks will begin on two <unk> cbs contracts for the pro and college basketball <unk> + cbs is likely to spend whatever it takes to keep them + the potential bill more than $ N million for several seasons an N N jump + a few months later cbs 's college and pro football contracts come up for renewal they could go for close to $ N million more than cbs now pays a N N to N N rise + what happens to those two basketball contracts will shape the next five years of network sports says peter <unk> a former cbs sports president now at <unk> inc + j. william <unk> former president of espn says nbc may come in with a huge bid for college basketball to take it away from cbs and say we can <unk> too + and the winners will be the colleges not either network + nor by the way advertisers + mr. pilson is an unlikely big <unk> + in the mid-1980s after abc had just bid a record $ N million for the N winter games he <unk> at rivals for paying reckless prices + i love pilson but he was the guy who complained most bitterly and <unk> says robert <unk> a former cbs sports president + and yet his company is one reason why rights are so high today + rivals <unk> at the principle of pilson as nbc 's arthur watson once put it he 's always <unk> that rights are too high then he 's going crazy + but the <unk> mr. pilson is hardly a man to ignore the numbers + a yale law school graduate he began his career in corporate law and then put in years at metromedia inc. and the william morris talent agency + in N he joined cbs sports to head business affairs and five years later became its president + mr. pilson says that when he spoke out a few years ago i did n't say forever and i did n't say every property + the market changed he adds + and he is n't the only big <unk> nbc will pay a record $ N million for the N summer games and espn <unk> by capital cities\/abc will shell out $ N million for four years of baseball airing N regular-season games a year + our competitors say we <unk> them + who <unk> + maybe we recognize values the other guys do n't mr. pilson says + mr. pilson 's major events strategy <unk> after mr. tisch took over + mr. pilson recalls that in april N after cbs 's annual meeting in philadelphia he and mr. tisch took the <unk> train ride back to new york and mr. pilson used this extended private audience to <unk> his ambitions + mr. tisch a billionaire in hotels and finance was just learning the tv business + five months later mr. tisch took over as cbs 's chief executive and soon he was <unk> sole approval each time mr. pilson <unk> a <unk> large figure on a slip of paper <unk> it in an <unk> and gave it to sports negotiators + then in may N mr. tisch <unk> needed to make a bold statement to <unk> rumors that he might sell the network + mr. pilson gave him one he bid $ N million for rights to the N winter games in <unk> france abc and nbc would n't bid even $ N million + that started the <unk> bidding wars + the major events strategy mr. pilson says is designed to <unk> a place for cbs on the crowded tv dial of the 1990s + it 's also a fast fix for an ailing image + he sees flashy sports as the only way the <unk> network can cut through the clutter of cable and <unk> grab millions of new viewers and tell them about other shows <unk> a few weeks later + next october cbs for the first time wo n't have to start the season against the <unk> american and national baseball league <unk> and the world series + i 've been struggling against that for years says jonathan <unk> who runs <unk> the <unk> station in chicago + even if baseball <unk> losses at cbs and he does n't think it will i 'd rather see the games on our air than on nbc and abc he says + that is n't surprising + regular tv series ratings have slumped in the past five years and <unk> new shows is a <unk> shoot mr. pilson says + but top sports events are still a strong bet to lure audiences N N or N N larger than those cbs usually gets + mr. pilson says baseball and the olympics may help cbs move up to no. N in the household ratings race putting <unk> back into the network 's image + and the winter olympics will air during the february <unk> when ratings are used to set ad rates for local stations + that will please <unk> affiliates another aim of the pilson plan + they <unk> await the dream season in N + cbs will air the <unk> bowl baseball playoffs college and pro basketball <unk> and other premier sports events + it 's made me more committed to cbs says philip a. jones the president of meredith corp. 's broadcast group which has two cbs affiliates + the cbs plan to use big-time sports as a platform for other series carries no guarantee of success however + no amount of <unk> will bring viewers back if the shows are weak + in this market of N channels sophisticated viewers and the <unk> control trial is n't a guarantee of anything espn 's mr. werner says + if the show ai n't a killer they 're gone + during the N summer games for example abc touted call to glory but the military drama was missing in action within weeks + last october during the N summer games nbc <unk> pitched a new series <unk> + it <unk> anyway + moreover sports is hardly the best way to lure adult women + though cbs might move up to no. N in household ratings most advertisers buy based on ratings for women aged N to N + cbs may remain a distant no. N in that regard + nor is cbs a <unk> to get blockbuster ratings + in recent years the world series and the olympics were aired against cbs 's <unk> lineup + but cbs will put the athletes up against bill cosby <unk> and other shows in nbc 's no. N schedule + even the <unk> to affiliate relations may be limited + the sports lineup may add only N N to N N to a station 's annual profits + it alone is n't likely to stop a station from <unk> cbs shows + the world series seven nights was n't enough of an incentive says arnold <unk> of <unk> in rochester which dropped cbs for nbc six weeks ago + you 've got to judge where the network will be in three years + the <unk> benefits may prove extremely costly if cbs ca n't avoid big losses on the sports coverage itself + and avoiding such losses will take a <unk> effort + on the $ N billion baseball agreement alone cbs is likely to lose $ N million in four years contends mr. <unk> the former cbs man now at comsat inc + nevertheless he <unk> the deal plain smart for its huge promotional value + mr. pilson calls that loss estimate wildly inaccurate <unk> only that cbs will lose money on baseball in the first year + it 's too early to tell what happens after that he says + but mr. tisch expects losses in all four years of the contract he told u.s. senators last june + cbs will pay an average of $ N million more each year than abc and nbc had paid together and those two networks expect losses on baseball this season + yet cbs will air only N regular-season games N fewer than abc and nbc + that has <unk> some fans + it also indicates a $ N million drop in ad sales for regular-season games a risk cbs took to get an unprecedented lock on all <unk> games + if the playoffs end in four-game <unk> losses could soar + advertisers are <unk> higher prices which would help close the gap + cbs signed general motors and toyota to be the only <unk> sponsors in baseball for four years + price $ N million + but ad executives who negotiated the deal say that works out to only $ N for a <unk> ad in the world series through N N N less than what abc is charging for the series this month + moreover there 's no question ad rates will come down considerably from the <unk> price says arnold chase of bozell inc + other <unk> however say rates could rise later if ad spending <unk> + the winter games outlook also is mixed + cbs expects to make modest profits but rivals contend that it will take a beating + abc lost $ N million on the N winter games partly because of its $ N million rights fee + it aired N hours of mostly live events in calgary helping raise ratings slightly from N but still failed to deliver the audience promised to advertisers + cbs will add N N hours to that load in N and ratings could be hurt by a lack of live events + all prime-time fare will be on <unk> because of time differences with norway so the results can be announced on the N <unk> news + turner broadcasting will pay cbs $ N million to air N hours of cbs coverage plus N hours of additional events + barry frank the agent who took mr. pilson to lunch last march says that even if cbs loses say $ N million it matters little + ten million ai n't jack man when you got $ N billion sitting in the bank says mr. frank senior vice president at international management group citing cbs 's enormous cash reserves from selling off various businesses + it does n't mean anything it 's public-relations money + moreover sports has claimed its place as a guaranteed <unk> says david j. stern the commissioner of the national basketball association + this is n't <unk> bidding this is a situation of very careful businessmen making judgments about the worth of product and acting on it + i would tend to trust their judgment + that 's easy for him to say cbs 's four-year <unk> pact now at $ N million for four years could double in price by the time his talks with mr. pilson are completed later this month + that would cut into cbs 's slim margin for profit and error + cbs sports earned $ N million or so last year + and cbs takes in the least money in prime time abc and nbc charge N N to N N more for ads according to a variety survey + but cbs 's costs are huge and the risks go up with each new sports package that cbs <unk> up + although sports officials predict <unk> of N N to N N in the major contracts coming up for renewal ad rates may rise only N N + cbs hopes to save money by ordering fewer episodes of regular series because sports will fill up a few weeks of prime time + but the savings will be <unk> + each hour of olympics and baseball in prime time will cost cbs $ N million to $ N million an <unk> drama costs only $ N and it is aired twice + cbs may cushion losses with about $ N million a year in interest earned on the proceeds from selling cbs records and other businesses + but <unk> analyst richard j. macdonald of macdonald <unk> <unk> says wall street wo n't take <unk> to that + on a <unk> basis the network ought to make money he says + when mr. pilson is asked directly can you make money on all this he does n't exactly say yes + what you 're really asking is are the profit and loss margins anticipated on the events acceptable to management he says + then he answers his own question + yes they are + that 's the only question we need to address + place a phone order through most any catalog and chances are the clerk who answers wo n't be the only one on the line + bosses have big <unk> these days + or open up an electronics magazine and <unk> the ads for <unk> tape recorders and other <unk> <unk> + some would make even james bond green with envy + <unk> both corporate and private is on the rise thanks to the proliferation of <unk> technologies + and while sellers of the equipment and companies monitoring employees have few <unk> <unk> advocates and some lawmakers are alarmed + new technologies are changing the way we deal with each other and the way we work says <unk> goldman a staff attorney at the american civil <unk> union + our expectation of <unk> is being eroded + on the corporate side companies claim that monitoring employee phone conversations is both legal and necessary to gauge productivity and ensure good service + the practice is common at catalog insurance and phone companies banks and <unk> according to trade groups and worker organizations + it 's also widespread for reservations <unk> in the airline <unk> hotel and railroad industries + the communications workers of america which opposes such monitoring says supervisors listen in on an estimated N million calls each year + among companies saying they monitor employees are united airlines american airlines united parcel service nynex corp. spiegel inc. and the circulation department of this newspaper + some wall street firms monitor for <unk> purposes + dictaphone corp. says there 's a big business demand for its <unk> taping systems whether the sophisticated <unk> N system which costs from $ N to $ N and can record N conversations simultaneously or simple <unk> units selling for $ N + businesses want to <unk> information and ensure <unk> says john <unk> dictaphone 's manager of media relations + the state of alaska recently bought the <unk> system he says to monitor the exxon cleanup effort + merrill lynch & co. and shearson lehman hutton inc. say they use <unk> systems to record and <unk> orders between salesmen and traders + shearson says it has taped some of its institutional trading desks such as commodities and futures for about four years + both companies stress that employees know they are being recorded and that customer conversations are n't taped + kidder peabody & co. says it monitors <unk> conversations between brokers and customers to <unk> order <unk> + <unk> by individuals is harder to measure + but devices are there for the asking whether in stores or through the mail + the counter spy shop in washington d.c. for instance offers the secret connection <unk> case which can <unk> record conversations for nine hours at a stretch + that and other fancy <unk> may cost thousands but simple <unk> tape recorders sell for as little as $ N at electronics stores like radio shack + the most common use of <unk> devices is in <unk> cases say private investigators + while tape <unk> to <unk> say <unk> are n't <unk> in court they can mean leverage in a settlement + concerned with the increased availability of <unk> technology and heavier use of it lawmakers have proposed laws addressing the issue + nine states have introduced bills requiring that workers and customers be made aware of monitoring + and four states california florida michigan and pennsylvania have adopted rules that all parties involved must consent when phone calls are recorded + two bills in congress hope to make such restrictions national + in may rep. don edwards d. calif introduced congressional legislation that would require an <unk> <unk> during any employee monitoring warning people that they are being heard + the legislation is similar to a N <unk> bill that was defeated after heavy lobbying by the <unk> industry + also last spring rep. ron <unk> d. calif. introduced a bill requiring universal <unk> consent to any <unk> in cases that do n't involve law enforcement + in addition products such as <unk> tape recorders would have to include <unk> <unk> and labels explaining federal laws on <unk> + the outlook on both federal bills is uncertain especially <unk> the N defeat + the <unk> and worker organizations back tighter laws but employers and device manufacturers object + i 'm sympathetic with workers who feel under the gun says richard <unk> of the direct marketing association of america which is lobbying <unk> against the edwards <unk> bill + but the only way you can find out how your people are doing is by listening + the powerful group which represents many of the nation 's <unk> was instrumental in <unk> the N bill + spiegel also opposes the <unk> bill saying the noise it requires would interfere with customer orders causing <unk> and even errors + <unk> dale center manager at the catalog company 's customer order center in <unk> nev. <unk> monitoring + we like to follow up and make sure operators are <unk> our standards of company service says ms. dale who <unk> N operators + john <unk> a nynex spokesman says the telephone company needs to monitor operators to evaluate performance during the first six months on the job + sometimes he says we 'll pull someone off the phones for more training + federal <unk> statutes recognize the right of employers to monitor employees ' for evaluation purposes + and in the past congress has viewed monitoring as an issue best handled in union negotiations + but opponents led by the <unk> say new laws are needed because monitoring is heavily concentrated in service industries and N N of monitored workers are n't represented by unions + the <unk> claims that monitoring not only <unk> on employee privacy but increases stress + nine to five a <unk> office workers organization that supports the <unk> bill six months ago started a privacy hot line to receive reports of alleged monitoring abuses + meanwhile supporters of the <unk> <unk> consent bill say it is needed because of a giant <unk> in the <unk> consent law + currently if the person taping is a party to the conversation it 's all right to record without the knowledge of the other person on the line + <unk> other people 's private conversations is illegal and punishable by five years in prison and fines of $ N + the electronics industry is closely following the <unk> bill + some marketers of <unk> gear including communication control system ltd. which owns the counter spy shop and others like it already put warning labels in their <unk> <unk> customers of the <unk> law + but vendors contend that they ca n't control how their products are used + radio shack says it has a policy against selling products if a <unk> suspects they will be used illegally + everything sold at radio shack has a legal purpose says bernard <unk> president of the tandy corp. subsidiary + he says he has n't yet studied the <unk> bill but that requiring a <unk> tone on recorders would be <unk> + still radio shack is aware that some of its products are controversial + a few years ago the company voluntarily stopped selling the big <unk> a powerful <unk> + with its ability to pick up <unk> and <unk> wings it was meant to be a toy for children for <unk> watching says mr. <unk> + but we were getting too many complaints that people were using them to <unk> on their neighbors + the hottest <unk> in the computer industry <unk> sharply yesterday as digital equipment corp. announced its first line of mainframe computers targeting international business machines corp. 's largest market + ibm fired back with new mainframes of its own extending the <unk> N line with a N N to N N power boost + up to now the intense competition between ibm and digital has been confined largely to the broad <unk> of the computer market where digital sought to exploit ibm 's weaknesses in <unk> + but digital 's move into mainframes will target ibm 's home turf where it has a commanding N N share of the market + digital maynard mass. insisted yesterday that its marketing focus would differ sharply from ibm 's + this is not your father 's mainframe said <unk> <unk> a digital spokesman + it 's a whole new generation he said + ibm which gets about half its revenue and more than half its profit from mainframes also announced upgraded operating system software that together with the new hardware lets customers do so-called batch processing as much as N N faster + batch processing is the <unk> <unk> data processing that most mainframes typically <unk> through at night such as <unk> accounts at banks + ibm said the N new <unk> and <unk> models will generally be available immediately though three wo n't ship until the third quarter of next year + prices on the larger models which range as high as $ N million generally wo n't change + small models whose performance increased as much as N N will carry higher prices + <unk> to bigger models also will be <unk> + digital 's vax N mainframes which it claimed were among the fastest available were priced from $ N million to $ N million sharply lower than ibm models of comparable power + the first models will ship in the spring with the largest following in the fall + analysts were disappointed that digital 's new line apparently wo n't contribute much to earnings before the next fiscal year which begins in july + jay stevens of dean witter reynolds inc. said he may cut his earnings estimate for the current fiscal year because he had expected at least some mainframe profit this year + but he added that he expected to raise his estimate for fiscal N at the same time + after the announcement yesterday digital shares gained $ N to close at $ N in new york stock exchange composite trading + ibm shares closed at $ N down N cents in big board trading + analysts have predicted strong <unk> demand for the new line among digital 's customers + large digital buyers say the new vax will let them stay with digital when they need the power of a mainframe instead of turning to ibm + i 'm convinced there 's a huge market for this machine said stephen smith of painewebber inc + digital also plans to compete fiercely with ibm when the giant 's customers are <unk> new aspects of their businesses + digital however does n't expect to <unk> ibm mainframes that are already installed at big companies + in addition to commercial markets digital 's new line targets the low end of the engineering and scientific supercomputer market when it 's packaged with an <unk> <unk> known as a <unk> <unk> + digital 's push into mainframes comes at a time when its mainstay <unk> line is under growing pressure from smaller personal computers and workstations that operate on standard operating systems rather than on the <unk> systems that older minicomputers use + although digital has <unk> out a major presence in the booming workstation market profit margins in that market are much <unk> than for mainframes + the <unk> mainframe market also has shown new signs of life lately + ibm 's mainframe sales have held up better than expected this year with analysts estimating they have risen N N to N N + demand for these systems has been very very strong said bill <unk> a senior ibm marketing executive + we have a good strong backlog for the fourth quarter even without the systems that were announced yesterday + but the N line is nearly five years old which is getting up there in mainframe years and its growth is expected to slow in N + ibm armonk n.y. said it wanted to bring out the mainframes as soon as it could to spark as many sales as possible by the end of the year + the fourth quarter is always ibm 's biggest by far with most sales coming in december as customers seek to use budgets before year end + still steve cohen an analyst at <unk> financial group inc. said i do n't see that this will be sufficient to give ibm a significant kick in the fourth quarter + ibm has already indicated it will have problems in the quarter partly because of a delay in shipping a high-end disk drive and partly because the strong dollar will cut significantly the value of ibm 's overseas earnings when translated into dollars + some analysts have estimated ibm 's fourth-quarter per-share earnings will fall N N to $ N a share from $ N a share a year earlier + in addition to the new mainframe hardware and software ibm announced a <unk> system for data storage that it said <unk> half as much floor space as older systems but can store five times as much data on a single <unk> + that should help ibm address the damage that a <unk> storage technology corp. has <unk> in that market + concord camera corp. completed the acquisition of peter <unk> g.m.b h. a west german photographic products distributor + terms were n't disclosed + concord is a camera and photographic products company + the navy awarded <unk> industries inc. 's <unk> shipbuilding division $ N million for shipyard services on the <unk> <unk> program + the award exercises a navy option to extend a contract given in N + the white house called on congress to <unk> the proposed capital-gains tax cut to its final deficit-reduction bill but lawmakers seem likely to <unk> at the idea + earlier this month the white house endorsed <unk> the controversial tax measure from the bill so that congress could pass quickly a clean bill containing only provisions specifically designed to meet federal budget targets under the gramm-rudman act + but now that congress has missed the legal deadline for meeting the gramm-rudman targets the white house said it has returned to its original view that a capital-gains cut should be part of the deficit-reduction bill on which congress continues to work + if that does n't happen then we press forward on another vehicle and a separate vote said press secretary marlin fitzwater + on capitol hill though there does n't seem to be sufficient sentiment to pair capital gains and the deficit-reduction bill + texas rep. william <unk> the ranking republican on the house ways and means committee said i do n't see how we have the votes to place a capital-gains tax cut there + meanwhile president bush stepped up his personal lobbying for the capital-gains tax cut + the white house said he plans to hold a series of private white house meetings mostly with senate democrats to try to persuade lawmakers to fall in line behind the tax cut + the first meeting yesterday was with N senate democrats who have expressed an interest in cutting the tax + according to some who attended the senators argued that the president should give the democratic leaders in congress a victory of their own to compensate them for allowing the president to win on the controversial capital-gains issue + issues discussed in this context were an increase in the minimum wage and an increase in child-care spending + the president was said to have been <unk> + toshiba corp. said its new french marketing concern has started operating under the <unk> of the company 's west german subsidiary which formerly handled all sales of toshiba electronic products in france + a recent change in french law according to toshiba permitted formation of the semiconductor marketing arm in paris + american telephone & telegraph co. unveiled new optical transmission systems for data video and voice communications + two products in what the telecommunications giant called a new generation of such equipment are available now at&t said and three others will be introduced in N and N + the products are aimed at a market expected to total more than $ N billion a year in sales by N said morgan <unk> jr. vice president of transmission systems for at&t + the products already available are <unk> systems used instead of <unk> of <unk> to <unk> other telecommunications equipment + this cuts down greatly on labor mr. <unk> said + to be introduced later are a <unk> which will allow several signals to travel along a single optical line a <unk> system which carries voice channels and a network <unk> which directs data flow through <unk> systems + at&t said the products unlike previous generations will meet so-called <unk> <unk> standards which at&t expects to be broadly adopted + <unk> or <unk> optical network products have more capacity than earlier models + these products are the heart of our <unk> line mr. <unk> said + he declined to disclose specific prices but said each product costs in the tens of thousands or even hundreds of thousands of dollars + at&t said it expects to beat to the marketplace two rivals northern <unk> ltd. of canada and france 's <unk> n.v. which also have announced <unk> products + at&t predicted strong growth in demand for such products + it noted that last july nippon telegraph & telephone corp. of japan selected at&t to supply $ N million of such equipment over a four-year period starting next year + law firms that have <unk> and grown on the revenue from mergers and acquisitions work are feeling the squeeze as that work declines + the disarray in the junk-bond market that began last month with a credit crunch at campeau corp. and the failure of banks to deliver financing for a leveraged buy-out of united airlines parent ual corp. has <unk> through some of the nation 's largest law firms + while it is still too early to tell whether the <unk> of takeover activity is only temporary many lawyers say their firms are bracing for lower revenue from merger work which has been so lucrative in the past + much of this work was done for higher fees than other legal work and was not generally billed by the hour + if deals take longer to complete and there are fewer of them to do you ca n't bill the same kind of premium as when deals took a few weeks from start to finish says one lawyer at a large new york firm + we 're planning on a <unk> year in N but next year we 'll be another story said robert <unk> a partner at simpson <unk> & bartlett + we 're settling down to a less active period + lawyers at such firms as sullivan & <unk> <unk> <unk> & <unk> <unk> lipton rosen & katz and fried frank harris <unk> & jacobson all say they too have experienced a significant slowdown particularly during the past few weeks + everyone is waiting to see if deals can be done at <unk> prices and if money is available said jack <unk> <unk> of <unk> <unk> + it 's hard to know right now if the change is fundamental or cyclical + some lawyers say the slump while more obvious in recent weeks began earlier this year + dennis block a partner at the new york firm of weil <unk> & <unk> said that in the first eight months of this year N hostile offers were launched compared with N for the first eight months of + what 's more he said transactions are taking a much longer time to conclude and many fall apart for lack of financing and more <unk> scrutiny by state courts + lawyers also say an <unk> stock market and uncertain financing conditions have sharply reduced the number of lucrative big deals likely to be proposed + still some lawyers say the mergers slowdown has n't affected foreign buyers as much as domestic ones + we just took another floor for our london offices said joseph flom of the new york firm of <unk> <unk> slate <unk> & flom + davis <unk> & <unk> also said its international clients are keeping mergers and acquisitions partners busy + european companies are looking to buy american ones said henry king the managing partner at that firm + but the question is whether things people are looking at will actually surface in live transactions in light of the current market conditions + murder threat charged in haas securities corp <unk> trial + in the trial of former haas securities chairman eugene laff the defense accused one of the government 's chief witnesses of threatening to kill mr. laff + mr. laff 's attorney john lang filed a memorandum asking that the trial record include a <unk> taped conversation in which the witness henry lorin told a haas <unk> that mr. laff should be killed + the conversation was taped by federal investigators in what mr. lang said was an effort to get mr. lorin to <unk> mr. laff + in his opening arguments last week in federal court in new york mr. lang told the jury that mr. lorin was the real master criminal behind the stock manipulation and that mr. laff knew nothing about it + in march mr. laff was indicted on N counts of conspiracy mail and securities fraud and <unk> an investigation by the securities and exchange commission + the government has charged that mr. lorin and mr. laff were part of a conspiracy to maintain the prices of certain stocks at artificially high prices + mr. lorin a stock <unk> pleaded guilty to the <unk> charges in april and agreed to cooperate with the government 's investigation of mr. laff + during his cross examination of mr. lorin mr. lang read from the <unk> of a conversation that was taped oct. N N + stanley <unk> the haas broker who agreed to carry a hidden <unk> during the conversation also has pleaded guilty to conspiracy to commit securities violations in the stock manipulation and agreed to cooperate + according to the <unk> mr. lorin said mr. laff should be killed after mr. <unk> told him that information given to mr. laff by another <unk> could jeopardize the stock scheme + mr. lorin then repeated the threat and mr. <unk> urged him not to say such things + from the parts of the <unk> read by mr. lang it was unclear what exactly mr. lorin feared might happen + when asked for a copy of the <unk> mr. lang said judge thomas p. <unk> had instructed him not to release it or the memorandum + during the trial mr. lang asked mr. lorin whether he had been so upset that you considered killing mr. laff + is n't it true that you were so worked up that <unk> mr. laff for this crime was the least that you planned for him + mr. lorin responded no + when mr. lang asked mr. lorin whether he had taken steps to have mr. laff killed the witness again said no + peter <unk> the assistant u.s. attorney <unk> the case declined to comment on the trial + trustee who monitored settlement payments to dalkon shield claimants <unk> + stephen a. <unk> one of five <unk> appointed to monitor payments to women injured by the dalkon shield <unk> contraceptive resigned citing personal reasons + mr. <unk> who teaches evidence at the university of virginia school of law and was a deputy assistant attorney general in the u.s. justice department until august submitted his resignation earlier this month to federal judge robert r. <unk> jr. in richmond va + judge <unk> is overseeing the bankruptcy-law reorganization of <unk> robins co. the company that manufactured the shield + in a letter monday to mr. <unk> the judge said he would <unk> accept the resignation + the $ N billion dalkon shield claimants trust was established as part of <unk> robins ' <unk> plan to resolve injury claims arising from use of the shield + american home products corp. proposes to acquire the company + the remaining four <unk> on the claimants trust have N days to <unk> a successor to mr. <unk> + judge <unk> will make the appointment + chicago law firm <unk> american express co. vice president + <unk> <unk> harris & <unk> brought in howard a. <unk> as a partner in its washington d.c. office which opened oct. N + for the past six years mr. <unk> N years old served as vice president for government affairs at american express + he previously was staff director and counsel for the senate committee on banking housing and urban affairs + the other lawyer in the office is partner robert a. <unk> the firm 's legislative director + the philadelphia law firm of <unk> <unk> <unk> & ingersoll said three partners have joined its business and finance department + john <unk> N a former <unk> in charge of legal compliance at american capital management & research inc. in houston will join <unk> <unk> 's <unk> practice + kent walker N a former partner at the philadelphia law firm of <unk> <unk> <unk> <unk> & <unk> will specialize in antitrust real estate and mergers and acquisitions + richard l. sherman N will advise midsized businesses + mr. sherman is former deputy general counsel for <unk> <unk> corp. in philadelphia now <unk> <unk> plc in london + delmed inc. 's top two officers resigned and were succeeded by executives of fresenius usa inc. and its parent fresenius ag a major delmed holder that has been negotiating to acquire a controlling stake + in addition delmed which makes and sells a dialysis solution used in treating kidney diseases said negotiations about pricing had collapsed between it and a major distributor national medical care inc + delmed said robert s. ehrlich resigned as chairman president and chief executive + mr. ehrlich will continue as a director and a consultant + leslie i. shapiro chief operating officer and chief financial officer also resigned the company said + mr. ehrlich was succeeded as chairman by <unk> <unk> a director of fresenius a west german pharmaceutical concern + ben <unk> president of fresenius usa was named president chief executive and chief operating officer + none of the officials was available for comment + in trading on the american stock exchange delmed closed at N cents down N cents + fresenius owns about N N of delmed 's fully diluted common stock + the two companies have been discussing a transaction under which fresenius would buy delmed stock for cash to bring its beneficial ownership to between N N and N N of delmed 's fully diluted common stock + the transaction also would combine fresenius usa and delmed + under the proposal delmed would issue about N million additional delmed common shares to fresenius at an average price of about N cents a share though under no circumstances more than N cents a share + yesterday delmed said it continues to explore the possibility of a combination with fresenius usa + it added that it is apparent that any terms of a combination would be substantially less favorable than those previously announced + while the discussions between delmed and national medical care have been discontinued delmed will continue to supply dialysis products through national medical after their exclusive agreement ends in march N delmed said + in addition delmed is exploring distribution arrangements with fresenius usa delmed said + philip l. hall president of j. lawrence hall co. nashua was named a director of this thrift holding company filling a vacancy + <unk> inc. said it intends to acquire <unk> america inc. for $ N million plus a consideration of as much as an additional $ N million payable over five years + <unk> is a <unk> and <unk> company + <unk> whose principal offices are in detroit is a mail-order <unk> of industrial tools and supplies + the acquisition is subject to approval by <unk> 's board + genentech inc. said third-quarter profit more than doubled to $ N million or N cents a share from a depressed N third-quarter performance of $ N million or six cents a share + revenue rose N N to $ N million from $ N million + net product sales accounted for $ N million up from $ N million a year earlier + sales of the heart drug tpa were $ N million better than last year 's depressed third period when the company sold just $ N million of the drug + but tpa sales fell below levels for this year 's first and second quarter sales of $ N million cooling investors + genentech stock fell N cents in trading yesterday on the new york stock exchange to $ N + in the nine months net income slid N N to $ N million or N cents a share from $ N million or N cents a share + revenues climbed N N to $ N million from $ N million + we continue to be on target for increasing tpa sales N N to N N this year said founder and chief executive officer robert <unk> + but some analysts remain sour on the company + tpa sales are down quarter to quarter + expenses are flat and that 's a good sign + there 's contract revenue from limited research and development partnerships + but i still think the fundamentals are poor said <unk> <unk> an analyst with montgomery securities in san francisco + genentech faces competition in the <unk> market from <unk> <unk> plc 's heart drug <unk> expected to receive market approval shortly + and genentech is n't likely to have any new products ready for market until at least N ms. <unk> added + the company 's stock is trading at N times next year 's numbers and that 's too much she said + on the plus side genentech is benefiting from a lower tax rate due to its research outlays giving a boost to earnings she said + the american cancer society 's N costs of fund raising and administration were $ N million or N N of its revenue + a chart in last friday 's special report on personal finance contained an incorrect figure supplied by nonprofit times a monthly newspaper covering charities + ryder system inc. posted a third-quarter net loss of $ N million because of an expected $ N million after-tax charge and continued weakness in the company 's <unk> business + the loss which is N cents a share is the transportation services concern 's first quarterly setback in more than a decade and compares with net income of $ N million or N cents a share in the year-ago period + the previous year 's third quarter included gains on the sale of aircraft by the company 's aviation leasing & services division + revenue was flat at $ N billion + the latest quarter 's after-tax charge which is N cents a share was related to adjustments to reserves for workers ' compensation claims reductions in vehicle fleets staff and facilities and <unk> of assets + although ryder did n't break out the charge analysts estimated that the majority of the $ N million was linked to workers ' compensation reserves and anticipated losses on the disposal of trucks + many analysts said they were n't surprised that problems in many of ryder 's lines of business continued to <unk> the company + it pretty much confirms what we had been expecting said anthony hatch an analyst at painewebber inc + in new york stock exchange composite trading yesterday ryder closed at $ N down N cents + m. anthony burns ryder 's chairman and chief executive officer said we 're constantly trying to find ways to regain the earnings momentum + but we 're still at the beginning stages of some of these changes + he said the fourth quarter will be challenging and maintained his conservative forecast that N wo n't be a <unk> <unk> + in the nine months net income fell N N to $ N million or N cents a share from $ N million or $ N a share a year earlier + revenue rose slightly to $ N billion from $ N billion + robert l. wood <unk> chief financial officer was named chairman and chief executive officer of this independent power producer succeeding raymond l. <unk> N + mr. <unk> who resigned effective jan. N for health reasons remains a director + advanced medical technologies inc. said it purchased N N of a unit of <unk> group inc + advanced medical paid $ N million in cash for its share in a unit of <unk> 's fisher scientific subsidiary + the unit makes <unk> <unk> used by hospitals and had more than $ N million in sales last year according to advanced medical + maxicare health plans inc. operating under chapter N <unk> protection outlined terms of its reorganization plan that calls for creditors and shareholders to receive at least $ N million in cash and $ N million face amount of 10-year N N notes + the plan outlined in a filing with the securities and exchange commission also calls for creditors and shareholders to receive common stock and warrants in the new company + the <unk> concern said it reached the agreement with its court-appointed creditors ' committees sept. N and intends to submit the plan to the bankruptcy court in november + maxicare which filed for bankruptcy protection march N has total debt of $ N million + the company has promptly paid all its expenses and obligations since march N a maxicare spokesman said + general unsecured creditors of maxicare 's continuing operations initially will receive $ N million in cash $ N million face amount of senior notes and N N of the new company 's stock + those creditors whose claims are estimated at about $ N million include doctors and hospitals + general unsecured creditors of maxicare 's discontinued operations whose claims total $ N million initially will receive $ N million in cash and $ N million in senior notes + maxicare 's public shareholders will receive N N of the new company 's stock and warrants <unk> them to acquire as much as an additional N N of the stock on a <unk> basis + general unsecured creditors of the parent holding company initially will receive $ N million in cash $ N million face amount of senior notes and N N of the new company 's stock + that group includes banks and bondholders who have claims of $ N million and $ N million respectively + maxicare also will guarantee that the banks will realize at least $ N million on certain notes pledged to them + maxicare said the plan <unk> that <unk> in the company 's health plans will have valid claims covered in full + those claims along with priority employee claims administrative claims priority tax claims and administrative convenience claims are expected to total about $ N million + the plan is subject to approval by the bankruptcy court and others + the spokesman said maxicare hopes to complete the reorganization by early N + birmingham steel corp. said that its <unk> calif. <unk> sustained only minor damage from last week 's earthquake + <unk> resumed oct. N but the company expects production to be hampered in the next few months by traffic disruptions around the plant and <unk> for repair to gas and electric power systems + the average interest rate rose to N N at citicorp 's $ N million weekly auction of <unk> commercial paper or corporate <unk> from N N at last week 's sale + bids totaling $ N million were submitted + accepted bids ranged from N N to N N + however citicorp said that the average rate fell to N N at its $ N million auction of <unk> commercial paper from N N at last week 's sale + bids totaling $ N million were submitted + accepted bids were all at N N + the bank holding company will auction another $ N million in each maturity next tuesday + hughes aircraft co. a general motors corp. unit said the <unk> <unk> commercial communications satellite is set to be launched friday + the satellite built by hughes for the international telecommunications satellite organization is part of a $ N million contract awarded to hughes in N to develop five of the <unk> <unk> + italian car manufacturer fiat said it is n't interested in partnership or industrial cooperation with swedish auto and aerospace group saab-scania ab which faces heavy losses in its car division + fiat said it 's only interested in technical cooperation with saab + we know that saab is looking for a partner for industrial and financial cooperation fiat said + but that partner is n't fiat + the italian auto maker confirmed that it was discussing technical cooperation with saab but declined to comment on rumors that it was planning to buy saab 's car division + fiat 's rejection of partnership with saab means that the swedish company which announced last friday that its pretax profit for the first eight months plummeted N N will have to look for a partner among other car manufacturers as both ford motor corp. and fiat have turned down the offer + news reports said yesterday that saab is trying to start negotiations with french <unk> <unk> and renault + itt corp. its insurance business hurt by hurricane hugo reported a N N decline in third-quarter net income despite a N N rise in revenue + itt also forecast a fourth-quarter blow to earnings from the california earthquake + except for insurance however itt said it expects improved operating earnings in all of our businesses for the full year + third-quarter net income dropped to $ N million or $ N a share from $ N million or $ N a share in the year-earlier period + itt bought back N million shares this year including N million during the third quarter + third-quarter revenue rose to $ N billion from $ N billion + in new york stock exchange composite trading yesterday itt common stock fell N cents to close at $ N a share + in addition to insurance and finance itt has interests in electronic parts defense technology automotive parts <unk> technology pulp and <unk> and communications and information services + hurricane hugo losses and the continuing industrywide downturn in the property and casualty insurance business were the major factors affecting quarterly comparisons said rand v. <unk> chairman and chief executive officer + itt 's hartford insurance group had a $ N million quarterly pretax loss from hurricane hugo itt said + hartford expects to report a further pretax loss of about $ N million for the current quarter as a result of the california earthquake this month itt added + the company also disclosed its financial operations had increased reserves for bankrupt accounts resulting in a $ N million pretax charge for the third quarter + this charge was partly offset however by $ N million in pretax capital gains + itt also said its consumer finance unit agreed in september to settle a civil suit with the california attorney general over alleged improper lending and sales practices + anticipating this settlement the company recorded a pretax charge of $ N million during the fourth quarter of N + an itt spokesman said the charge was n't publicly reported at the time + the company 's product businesses with the exception of electronic components had higher operating earnings for the first nine months of N the company said + <unk> on the exception it said volume and margins were lower in semiconductor and power systems operations + amoco corp. said it plans to install two <unk> and drill as many as N wells to develop oil reserves it discovered in the atlantic ocean about N miles off the coast of <unk> + amoco an energy concern is the operator of the project with a N N working interest and other partners include <unk> <unk> the <unk> state oil company with a N N interest and kuwait foreign petroleum exploration co. with a N N stake + production is expected to be about N barrels of oil a day after completion of the drilling program + jacobs engineering group inc. 's jacobs international unit was selected to design and build a <unk> manufacturing plant in county <unk> ireland for intel corp + jacobs is an international engineering and construction concern + total capital investment at the site could be as much as $ N million according to intel + the <unk> plant will be constructed on a <unk> site near <unk> + jacobs engineering officials could n't be reached for comment + bob evans inc. said its board authorized the purchase of as many as N shares of its common + the stock to be purchased on the open market or through privately negotiated transactions will be held as treasury shares for stock options or other general corporate purposes + the program expires april N + the restaurant operator had N million shares outstanding as of sept. N + coda energy inc. said it completed the sale of <unk> co. to <unk> pipeline co. for $ N million in cash and notes + coda an oil and gas concern said it and its partners received $ N million in cash and $ N million in five-year notes for the kansas <unk> pipeline + coda owned N N of the pipeline and private entities owned the rest + <unk> is based in hutchinson kansas + french consumer prices rose N N in september from august according to provisional estimates by the national statistics institute + the agency noted that because of a strike by finance ministry personnel the provisional estimate does n't <unk> exactly to the consumer price index usually published + the agency noted however the estimate will likely be confirmed + the institute did n't estimate annual price growth in september but a N N rise by the consumer price index would put growth at either N or N up N N or N N from the year-earlier level of N + the index was N in august and is based on N equaling N + international technology corp. and <unk> <unk> corp. a unit of london 's <unk> corp. said they were awarded a $ N million contract by the u.s. army corps of engineers for the <unk> of the <unk> <unk> landfill superfund site in <unk> township n.j + international technology an environmental management concern said the contract includes construction of <unk> walls gas collection systems a <unk> cap and water treatment plant + u.s. memories inc. the venture that seeks to crack japan 's domination of the <unk> market said it has chosen four potential sites for its operations after a fierce bidding war by N states + u.s. memories said it will begin visits during the next several weeks to sites in austin texas colorado springs colo. <unk> n.y. and phoenix <unk> + sanford kane president said the <unk> were chosen from among N locations based on financial business and quality of life considerations + <unk> by its absence is california + san jose and several other california cities mounted major campaigns during the summer to woo the group which was founded last june by seven electronics concerns + the venture plans to announce a final site by late november + it expects to begin construction by year end and start shipping <unk> dynamic <unk> memory chips by <unk> + u.s. memories investors include advanced micro devices inc. digital equipment corp. hewlett-packard co. international business machines corp. intel corp. lsi logic corp. and national semiconductor corp + mr. kane said he expects several other companies to join some time after the venture <unk> a business plan probably later this week + a seat on the chicago board of trade was sold for $ N unchanged from the previous sale oct. N + seats currently are quoted at $ N bid $ N asked + the record price for a full membership on the exchange is $ N set aug. N N + dennis r. <unk> a general manager of <unk> <unk> was named vice president of research and development a new post at this steel company + fred d. thompson a <unk> attorney in private practice in washington and <unk> tenn. was elected to the board of this engineering and construction company + the board increased to N seats + sun microsystems inc. said prime computer inc. has agreed to <unk> as much as $ N million worth of sun 's machines over the next two years + the computers use the company 's own microprocessor called <unk> sun said + quickview systems inc. said it filed a lawsuit against apple computer inc. claiming patent infringement in an element of apple 's popular <unk> software program + the suit filed in minneapolis federal court claims that apple violated a quickview patent that allows computer users to display only portions of multiple fields on a computer screen with the ability to see the entire <unk> of any given field + the <unk> program allows users to design applications for <unk> computers without having to be <unk> programmers and is distributed with every <unk> sold + it 's one of the most popular computer programs of all time but analysts said the quickview suit does n't appear to <unk> major difficulties for apple + the technology at issue is not an underlying technology of <unk> to my knowledge said danny goodman a san <unk> <unk> program developer + nonetheless the suit seeks unspecified damages that an attorney for quickview claimed could run into the millions of dollars + in cupertino calif. apple said that it believes the case has no merit and that <unk> does not <unk> any valid claims of the quickview patents + it said it filed an action of its own in federal court in san jose calif. seeking a declaration that quickview 's claims are <unk> + this is in response to <unk> kageyama 's manager 's journal looking for the real thing in sony editorial page oct. N + though i agree with many of mr. kageyama 's comments i believe he points the gun in the wrong direction it is n't the americans who must be criticized for not understanding the japanese culture but the japanese who insist on forcing their culture on americans + the japanese want us to accept their culture but they refuse to accept the american culture + japanese managers ca n't expect americans to <unk> as if they were japanese instead they must manage americans as americans + americans are expected to conform to the japanese culture when in japan + what is wrong with expecting the japanese to conform to american <unk> when they <unk> here + americans place native or native <unk> in charge of subsidiaries overseas + european <unk> do likewise even in america their affiliates are usually run by american managers + but the japanese insist upon japanese managers everywhere they set up shop + do the japanese feel so superior that they can not find capable american managers + paul a. <unk> indiana university <unk> <unk> + mr. kageyama suggests that <unk> electronics industries workers were having difficulty understanding their foreign bosses ' perspective + while mr. kageyama does an excellent job of explaining the differences both cultural and <unk> i question his perspective + would he suggest that employees of an american company doing business in japan conform to their new bosses ' culture and philosophy + obviously not + thus the conclusion is that the burden <unk> with management to <unk> the culture and philosophy of the country in which they are operating + the workers can be motivated and the company reach its full potential only when management <unk> the employees ' perspective + a. <unk> <unk> president municipal code corp <unk> fla + i believe mr. kageyama left out one major aspect of japanese culture that <unk> his piece the belief in the <unk> of japanese culture and behavior vs. others + a manager should not have to <unk> the opinions of his employees about the style of his management + instead he should listen to see how that criticism can be used <unk> to advance his objective of carrying out a set of tasks through the efforts of his subordinates + japanese culture vs. american culture is irrelevant + the key is how a manager from one culture can <unk> employees from another + for mr. kageyama to argue that american employees must <unk> accept a direct <unk> of the japanese way of doing things is outright cultural <unk> of the first order + the japanese are <unk> the opportunity to <unk> a new corporate culture based on a fusion of the best aspects of both national <unk> + mr. kageyama is accurate to deny a specific <unk> bias + it is more difficult to deny a general <unk> in seeing things only the japanese way + when the response to criticism is only a better explanation of policies without <unk> the reasons for the criticism i am convinced that mr. kageyama has still failed to attack the root cause of the problem and is simply treating symptoms + norman l. <unk> <unk> <unk> + cie generale des <unk> reported that net profit climbed N N in the first half of N and said that it expects a gain of about N N for the full year + the french water treatment group said consolidated net profit after payments to minority interests rose to N million francs us$ N million from N million francs in the first half of N + revenue climbed N N to N billion francs from N billion + generale des <unk> said the earnings gain was led by its water energy and building activities + as a presidential candidate in N george bush <unk> expressed his position on abortion in an interview with rolling stone magazine published that march + what did he think of the supreme court 's decision <unk> abortion + i happen to think it was right mr. bush said <unk> + a few months later mr. bush became ronald reagan 's running <unk> + suddenly george bush the pro-choice advocate became george bush the <unk> + and the <unk> did n't end there + just a month ago mr. bush <unk> threatened to veto a pending welfare bill if it provided any abortion funds except to save a woman 's life + then two weeks ago declaring that i 'm not looking for any conflict over this the president said he would consider a compromise to fund abortions for poor women in cases of rape and incest + but only four days after that mr. bush <unk> the veto threat + i do not support federal funding for abortions except where the mother 's life is threatened he proclaimed and finally vetoed the measure last weekend + so what does george bush really believe + the answer is so <unk> that it is beginning to get this popular president in trouble with each of the increasingly <unk> increasingly powerful sides of the abortion issue + the result is <unk> and criticism from all around + anti-abortion forces regard him as at best an uncertain ally + in all honesty if you ask me is this man a true <unk> i do n't know says john <unk> head of the washington-based ad <unk> committee in defense of life inc + yet abortion-rights forces remain bitterly critical + douglas gould vice president of communications for the planned <unk> federation of america calls mr. bush 's position on the <unk> issue extremely <unk> adding the guy has n't done one thing about prevention + he 's totally geared to a punitive position + mr. bush is <unk> uncomfortable with the entire abortion question + for most of the past nine years he has <unk> to convince anti-abortion activists of his <unk> support for their position + but ever since the supreme court 's webster vs. reproductive health services decision this year changed the political landscape of the abortion issue the president seemingly has tried just as hard to avoid saying anything more unless pressed to the wall + many americans still <unk> over their own personal feelings about abortion + mr. bush 's problem is n't so much that he seems to be <unk> over the issue as it is that he seems to <unk> on it + the political risk would be far less if the president drew a firm line and <unk> to it experts insist + if you have a position you 're better off to stick with it than to move around very much says republican strategist john sears + the need for <unk> is especially <unk> for mr. bush who mr. sears maintains lacks a strong ideological base + by his moderate republican heritage as well as the warnings of political advisers who say the issue is vital to younger voters the president might seem to have at least some <unk> with abortion-rights arguments + yet he is also firmly bound by his hard-line rhetoric and promises he made to anti-abortion activists during his long pursuit of the white house + on many issues <unk> for instance his keen political <unk> overcome such conflicts + but mr. bush and his advisers <unk> the politics of the abortion issue failing to grasp how dramatically the abortion-rights movement would be aroused following last summer 's supreme court decision to restrict those rights in the webster case + it was one of the <unk> changes in public attitudes i 've ever seen says former reagan <unk> richard <unk> + these days when others raise the subject of abortion the usually <unk> president can be <unk> almost to the point of <unk> + ten days ago he was asked to <unk> the reasons behind his anti-abortion stance + my position is well-known and <unk> he replied + a close look at his record over the last N years suggests that mr. bush has <unk> his views on all sides of the issue + in N as the u.s. representative to the united nations he wrote an introduction to a book on world population in which he <unk> of his leadership during his term in congress in expanding <unk> services for the poor + running for president in early N he was also quoted as supporting federal funding for abortions in cases of rape incest and to save the life of the mother + in his rolling stone interview in N mr. bush <unk> his abortion-rights remarks to contrast himself with his rival ronald reagan + in addition to supporting the landmark roe vs. wade supreme court decision <unk> abortion mr. bush said he opposed the constitutional ban on abortion that mr. reagan was promising to promote + as mr. reagan 's running <unk> though mr. bush plunged <unk> into the anti-abortion position <unk> a constitutional amendment <unk> abortion + he acknowledged only one difference with mr. reagan that the amendment ought to have exceptions for rape and incest as well as to save a woman 's life + throughout the early 1980s mr. bush was quoted sometimes supporting federal funding for abortion in cases of rape and incest and sometimes opposing it + in april N <unk> president bush had his staff write a letter <unk> out that he would support a constitutional amendment banning abortions except in cases of rape incest and life <unk> but that he opposed federal funding in all but the latter case + at the gop convention last year he again came out for an amendment with exceptions for rape incest and life <unk> + his rhetoric gathered momentum as he rolled into office <unk> his firm support of our cause during an anti-abortion rally three days after his <unk> last january + he again urged passage of a constitutional amendment <unk> abortion + but when the high court ruled in the webster case in july the president began to lower the volume + when the ruling was handed down the <unk> president dispatched chief of staff john <unk> to issue a statement and refused to answer questions himself + he did later threaten <unk> over legislation restoring the district of columbia 's right to use its own tax money to fund abortions for poor women and over restoring funding to the united nations population fund + but in the months since then while trying to drum up support for other issues such as an <unk> constitutional amendment he has <unk> away from talking about abortion + what few comments he has initiated have been <unk> such as urging greater efforts toward the protection of human life at a meeting of catholic lawyers in boston last month + the white house has likewise avoided any involvement in florida 's recent special legislative session on abortion which anti-abortion forces had regarded as a key test of their ability to get state lawmakers to <unk> abortion restrictions + the session failed to enact any new curbs + now some see mr. bush trapped in a position he is neither comfortable with nor able to escape + ken <unk> head of the republican mainstream committee a group of party <unk> observes the administration finds itself in an ideological <unk> de <unk> that it will find it difficult if not impossible to get itself out of + christopher cox 's oct. N editorial-page article toward more <unk> lawsuits misses the point + the N americans with disabilities act is about eliminating <unk> barriers + when we look closely at our own history it is clear that our <unk> mandated civil rights have <unk> not through the <unk> of people 's hearts but through legislation and constitutional amendments + this is how american women won the right to vote + and it is how <unk> and other minority groups were guaranteed their equal rights as citizens in this nation + for the more than N million americans with disabilities the N americans with disabilities act provides the missing piece + disabled americans have had their civil rights guaranteed in all federally funded programs since section N was passed as a part of the N rehabilitation act + the N act simply <unk> these guarantees to the private sector + those who fear a <unk> of suits <unk> our legal system need only look at the record on the rehabilitation act + without legal <unk> there are no guarantees of civil rights for anyone + john r. garrison president national <unk> seal society + ford motor co. said it is consolidating control of its asian operations under a new organization here that will be headed by w. wayne <unk> + ford <unk> will coordinate the activities of ford subsidiaries in japan australia taiwan and new zealand and work with ford business associates throughout the region + these functions are currently performed out of <unk> australia and at ford 's headquarters in dearborn mich + mr. <unk> executive director of ford 's latin america automotive operations since december N was named vice president of ford <unk> + goodyear tire & rubber co. buoyed by improved operating profit in its tire segment reported that third-quarter net income rose N N to $ N million or $ N a share + in the year-ago period goodyear had net of $ N million or $ N a share + sales rose slightly to $ N billion from $ N billion + analysts had mixed responses to the results + donald <unk> an independent analyst in new <unk> conn. said he was impressed with the company 's performance + he said results were better than he 'd expected and indicate that goodyear is in the midst of a turnaround from a string of lackluster quarters that have plagued the company for a year + however harry <unk> an analyst at mcdonald & co. cleveland said goodyear 's results fell at the bottom of his range of estimates + excluding an increase in the tax rate and the effects of foreign currency <unk> mr. <unk> said the company 's results were still a little disappointing + goodyear 's stock which has been weak in recent weeks fell $ N yesterday to close at $ N a share in composite trading on the new york stock exchange + the <unk> <unk> company said pretax operating income in its tire segment jumped about N N to $ N million from $ N million a year earlier reflecting improvements in raw material costs sales of replacement tires and pricing + mcdonald 's mr. <unk> said goodyear appeared to have held or gained some market share in the u.s. for the first time since the second quarter of N + but goodyear said total u.s. tire unit sales were off about N N + total tire segment sales were up only about N N to $ N billion and the company said it reduced manufacturing levels at some of its u.s. tire plants because of inventory adjustments and <unk> production by auto makers + in the latest quarter goodyear 's tax rate was N N compared with N N a year earlier + as a result total tax outlays were $ N million compared with $ N million the year earlier + for the nine months profit skidded about N N reflecting charges taken in this year 's second quarter and the effect of <unk> of weaker foreign currencies into the stronger u.s. dollar + net was $ N million or $ N a share compared with net of $ N million or $ N a share the year earlier + the latest nine months included charges of $ N million related to the company 's south african subsidiary and unused pipe sold by its crude oil pipeline unit + sales rose nearly N N to $ N billion from $ N billion + environmental control group inc. said it expects to report minimal earnings or a loss for the third quarter + the environmental services company said that the <unk> of unsuccessful product lines and an increase in <unk> reserves probably will result in charges of $ N million to $ N million most of which will be taken against third-quarter results + in the year-ago quarter the company reported earnings of $ N million or N cents a share + former usx corp. chairman david m. roderick may have been lucky he retired last may + as he handed over the reins to successor charles a. corry steel profits were close to a cyclical peak + though imports were troublesome they were n't running away with the market and american companies had high hopes that steel import quotas would be extended for another five years + perhaps most important carl icahn who had once threatened a hostile takeover bid was subdued + he and mr. roderick were even <unk> out together + today mr. corry <unk> over a company whose fortunes have changed abruptly + mr. icahn the company 's <unk> <unk> adversary recently disclosed that he had raised his usx stake to N N and he again threatened a takeover + a battle with mr. icahn would <unk> even the most <unk> chief executive to say nothing of one who took the helm less than five months ago + in addition usx 's giant steel segment representing N N of its N sales is facing softening demand and slipping prices as well as increasing competition from foreign steelmakers and low-cost minimills + the import quotas got only a N 1\/2-year extension and usx is <unk> under a staggering $ N billion debt at a time when it must spend money to upgrade steel mills and drill for oil + it 's a <unk> of fire for corry says one usx executive + the burning question is whether the new chief can <unk> mr. icahn without being pushed into unwelcome moves + mr. corry might have to <unk> the company more than he wants to + or he might have to incur a huge expense of either buying mr. icahn 's stock possibly at a premium or paying stockholders a special dividend partly because of mr. icahn 's pressure + with his recent purchases of usx common stock mr. icahn shattered a <unk> <unk> standstill agreement with mr. roderick + in N mr. roderick <unk> <unk> mr. icahn 's first bullet after the takeover specialist had built up an N N stake + mr. roderick did so by having usx redeem a series of guaranteed notes a move that in effect raised the cost of a $ N billion icahn bid by about $ N billion + and he managed to fend off further advances and even strike up an unlikely friendship with the <unk> + over <unk> at new york 's sky club and links club restaurants the steel executive and the big investor talked steel international trade and thoroughbred horses + mr. corry who has <unk> up on corporate raiders by reading t. boone pickens 's <unk> had hoped the <unk> would continue + he was shocked associates say to learn of mr. icahn 's new takeover threat + both men declined to be interviewed for this article + but the fiercely competitive mr. corry quickly showed he 's no <unk> + he <unk> with directors at a special meeting two weeks ago and tried to block his opponent + although the board believed that mr. icahn is more interested in talking the stock price higher than acquiring usx it adopted a <unk> defense to be <unk> if anyone <unk> a N N stake + now it 's mr. icahn 's move + will he try to gain a seat on or control of the board and force a radical split of usx into separate oil and steel companies + given the weakness of the junk-bond market can he finance a buy-out + mr. icahn may not want to sell out unless he can get a special dividend similar to one he received before selling his stake in texaco inc. in june a coup that gave him enough cash to make his usx move + and although the recent turmoil in the stock and junk-bond markets by making it harder to arrange takeover financing has eased some of the pressure on mr. corry it does n't end the takeover threat + i know it 's not over a <unk> mr. corry acknowledged while <unk> steel suppliers in new york on oct. N and inviting them to a buffet of <unk> and <unk> in honor of kobe steel ltd. usx 's partner in a steel mill in <unk> ohio + in fact it 's barely begun for mr. corry who faces tough decisions before he has had a chance to get settled into his new job + he 's in a vulnerable position because he has n't established much credibility on his own says <unk> <unk> a securities analyst at painewebber inc + the <unk> tax attorney never even <unk> to the job of chief executive + an <unk> college student who <unk> in <unk> until he concluded that he could n't stand cutting up <unk> mr. corry wanted to work for a big company that could do big things + but after joining the tax department of a usx subsidiary N years ago he set the modest goal of becoming tax manager by the age of N + for years he quietly stuck to the back accounting rooms wearing a hat to work because everyone else did + i was never a rebel he said in an earlier interview + i do n't think most of the people that have been around me would ever say they 've seen me pound the table or get angry + yet the <unk> mr. corry helped chart usx 's transition from big steel to big oil + he served as mr. roderick 's front man in <unk> negotiations for the N purchase of marathon oil for $ N billion + nevertheless mr. corry once named chief executive did n't waste any time <unk> himself from his former boss who still has an office on the <unk> floor of the usx tower in pittsburgh + soon after taking over last june mr. corry <unk> a pay cut imposed on <unk> workers a move that mr. roderick had n't made in spite of improved earnings + mr. corry also ruled that all board meetings would be held in pittsburgh instead of new york or <unk> ohio marathon 's home + and earlier this month he announced the sale of the reserves of texas oil & gas which was acquired three years ago and has n't posted any significant operating profits since + one former executive says nobody wanted that deal inside usx except dave roderick who was a hunting and fishing buddy of william l. <unk> chairman of texas oil & gas + the executive recalls mr. corry <unk> to him and others remember this was dave 's deal + what <unk> many usx executives and shareholders was that the acquisition for $ N billion of stock doubled the usx shares outstanding and considerably diluted them + what 's more the takeover occurred as natural-gas prices were falling and just as texas oil & gas reported its first annual loss in N years + mr. corry expected the texas oil & gas sale to <unk> mr. icahn by addressing his concern about boosting shareholder value + but when the two men met in new york a day after mr. icahn disclosed the rise in his usx stake mr. corry learned that mr. icahn wanted him to sell all of texas oil not just its reserves of about N trillion cubic feet of natural gas and N million barrels of oil but also its pipeline <unk> and <unk> operations + that would leave usx with marathon its steel mills and its diversified business segment which includes among other things mineral and transportation products + some speculate that mr. corry would agree if he could find a buyer at the right price + the problem is that mr. icahn is pushing him to move faster and further in restructuring usx than mr. corry had planned + mr. icahn has long believed associates say that the company whose N sales totaled $ N billion is worth $ N a share if broken up + the stock closed yesterday at $ N giving mr. icahn 's N million shares a value of $ N billion + mr. icahn advocates the sale of the company 's steel operations and mr. corry does n't necessarily disagree + unlike his predecessor who saw steel as america 's <unk> mr. corry tends to view it as a <unk> and <unk> business with limited potential associates say + in the past five years usx has turned steel into a profit maker by closing several plants and reducing labor costs + but the short-term outlook is <unk> + it is n't surprising that messrs. roderick and corry view steel so differently + while mr. roderick was <unk> in the <unk> of pittsburgh 's smoking mills mr. corry grew up in cincinnati a city <unk> <unk> and more accustomed to pork <unk> than <unk> iron + he has never met lynn williams the president of the united steelworkers union and is n't active in the industry 's main trade group the american iron and steel institute which mr. roderick served as chairman + dave thought the country needed a strong u.s. steel and while chuck agreed he was more apt to say not at any cost to shareholders a former executive says + indeed mr. corry at an august press conference talked about investing in steel as long as it provides a good return and not a day longer + however shedding steel would run directly counter to mr. roderick 's original rationale for diversifying into oil and gas having two major products would <unk> the company 's <unk> to one market 's down cycle and help smooth out the flow of cash and earnings + as mr. roderick once said we 're a <unk> company and boy if you ca n't figure out the value of those two parts you are so damn <unk> that you do n't belong on wall street + moreover the opportunity to sell steel at a price acceptable to usx may be gone for now + the time has passed for us to spin off steel either in a public offering or to a buyer one executive contends + about the only way that usx now can get out of steel is to <unk> it out piece by piece in separate joint ventures he adds + with mr. icahn breathing down his neck however mr. corry may have little choice but to sell at a weak price even if it means losing some <unk> tax-loss <unk> + that would leave usx essentially an oil company with marathon as its core + marathon has benefited from higher <unk> prices and strong demand for refined products + oil has long been mr. corry 's pet + indeed when the bush administration finally decided this summer to renew import restrictions <unk> the most important decision to affect the steel industry in five years mr. corry and his directors were aboard <unk> high above marathon 's rich oil reserves in the north sea + should usx be left with only marathon mr. corry might well feel pushed to <unk> out other energy companies + however even usx executives who work closely with him are n't sure about his long-term goals + i do n't think he has a clear sense of where he wants the company to go one says + right now the executive adds he wants to continue to focus on paying down usx 's debt by selling assets + one thing is certain however mr. corry while studying other options probably wo n't make a major move until he 's clear about mr. icahn 's intentions + and then he wo n't panic says j. bruce johnston a former usx executive and now a labor and benefit consultant with <unk> cohen & <unk> in pittsburgh + mr. corry learned presence under fire when as vice president of corporate planning he handled what mr. johnston calls <unk> negotiations that led to usx 's shedding of a wide array of assets ranging from chemicals to construction + when negotiating mr. corry played his cards close to the <unk> + <unk> johnson who worked for mr. corry in strategic planning recalls how his boss would routinely ask a subordinate to research an entire industry to target acquisition candidates + what he really wanted to know was about a particular company but you did n't know that + he wanted your own <unk> virgin opinion says mr. johnson now managing director at <unk> & co. a <unk> and <unk> firm + ever the <unk> mr. corry said in august that he realized that usx is on acquisition screens all over the country + it 's part of the <unk> market system that equity can be bought and equity is bought he said + usx he noted was formed N years ago by in effect buying out a bunch of other companies + people got rich through takeovers in those days as they do today + thomas f. <unk> contributed to this article + westinghouse electric corp. said it will buy <unk> co + terms were n't disclosed + <unk> based in <unk> mich. makes metal files and desks and <unk> and office systems furniture + israel has launched a new effort to prove the <unk> liberation organization continues to practice terrorism and thus to persuade the u.s. to break off talks with the group + u.s. officials however said they are n't buying the israeli argument + israeli <unk> officials provided the state department with a <unk> list of recent terrorist incidents they attribute directly to forces controlled by plo chairman <unk> arafat + mr. arafat publicly <unk> terrorism dec. N satisfying the u.s. <unk> for a direct dialogue with the plo + a u.s. <unk> official said experts are studying the israeli list + we have no independent evidence linking <unk> to any acts of terrorism since dec. N N he said referring to the specific plo group that mr. arafat heads + so far this list does n't change our view + israel wants to end the dialogue but our analysts take a different view than theirs + israeli prime minister <unk> shamir 's top adviser on <unk> <unk> <unk> was here monday to present the report to members of congress reporters and others + mr. <unk> said he also presented the list last week to william brown u.s. ambassador to israel + separately the new york times reported that the israeli government had provided its <unk> in <unk> with different documents that israel said prove the plo has been conducting terrorism from the occupied arab <unk> + the state department said it has n't yet seen copies of those papers + if the dialogue was based on the assumption that arafat or the plo would stop terrorism and we have evidence of continued terrorism what would be the logical conclusion mr. <unk> asked + israel has long claimed mr. arafat never meant to <unk> terrorism particularly because he and his <unk> reserved the right to press armed struggle against the jewish state + now <unk> says it is backing up its <unk> with detailed accounts of alleged terrorist acts and plans linked to mr. arafat + it blames most of these on <unk> + the new accusations come at a delicate time in u.s. efforts to bring about talks between israel and palestinian representatives + the state department said it had received a new letter on the subject from israeli foreign minister <unk> <unk> <unk> israel 's previous <unk> to negotiating with any palestinian tied to the plo + deciding what <unk> terrorism can be a <unk> exercise + the u.s. <unk> it as <unk> politically motivated violence <unk> against <unk> targets by <unk> groups or <unk> state agents + to meet the u.s. criteria israel contended it only listed incidents that involved <unk> and occurred inside its <unk> borders + at the heart of israel 's report is a list of a dozen incidents <unk> attributes to <unk> including the use of <unk> and <unk> <unk> + but u.s. officials say they are n't satisfied these incidents constitute terrorism because they may be <unk> of the <unk> the palestinian <unk> in the occupied <unk> which the u.s. does n't <unk> as terrorism + in addition the officials say israel has n't presented convincing evidence these acts were ordered by <unk> or by any group mr. arafat controls + u.s. terrorism experts also say they are highly uncertain about the <unk> of the separate documents <unk> to the new york times + the papers which israel says were discovered in <unk> <unk> refer to terrorist acts to be carried out in the name of a group called the revolutionary <unk> + some supporters of israel say u.s. policy on palestinian terrorism is <unk> by an intense desire to maintain the dialogue with the plo + but state department officials accuse israel of <unk> questionable claims to <unk> the u.s. + the dollar finished lower yesterday after tracking another <unk> session on wall street + concern about the volatile u.s. stock market had faded in recent sessions and traders appeared content to let the dollar <unk> in a narrow range until tomorrow when the preliminary report on third-quarter u.s. gross national product is released + but <unk> gyrations in the dow jones industrial average yesterday put wall street back in the <unk> and inspired market participants to bid the u.s. unit lower + ual 's decision to remain an independent company sent share prices tumbling + by midmorning the <unk> had plunged N points and foreign-exchange dealers quickly drove the dollar down + when the <unk> modestly rebounded the dollar bounced back in <unk> dealings but ended the day below the levels of late monday + stock prices meanwhile posted significant gains in later trading and closed down by only N points on the day + some dealers said that the market 's strong reaction to wall street reflects a general <unk> about the dollar + they added that the <unk> 's swift drop proved an easy excuse for the market to drive the u.s. currency in the direction it was already headed + in late new york trading yesterday the dollar was quoted at N marks down from N marks monday and at N yen down from N yen late monday + sterling was quoted at $ N up from $ N late monday + in tokyo wednesday the u.s. currency opened for trading at N yen down from tuesday 's tokyo close of N yen + tom <unk> a vice president with banque paribas in new york sees a break in the dollar 's long-term upward trend a trend that began in january N + he argues that the dollar is now moving <unk> adding that the next leg could be the beginning of a longer term bearish phase + analysts <unk> the dollar 's recent weakness to an underlying slowdown in the u.s. economy <unk> by recent economic data particularly a surprisingly sharp widening in the august u.s. trade gap + they also point out that narrowing interest-rate <unk> between the u.s. and its major trading partners tend to make the u.s. currency less attractive to foreign investors + despite several <unk> of dollar trading it was noted that <unk> cross trade grabbed much of the market 's attention + following the dive in u.s. stocks the mark has strengthened more than its major counterparts + traders attribute the mark 's surge to a robust west german economy and higher rate <unk> + but they add that the mark 's strength is in part a reflection of a shift away from u.s. assets by japanese investors into west german investments + the question remains how much can the west german market absorb says one senior dealer + some dealers say that bank of japan governor <unk> <unk> 's <unk> that japanese monetary policy wo n't be changed for the time being has given investors an added excuse to push the yen down even further against the mark + despite the yen 's weakness with respect to the mark tokyo traders say they do n't expect the bank of japan to take any action to support the japanese currency on that front + meanwhile sterling slumped on news that the united kingdom posted a <unk> trade deficit in september + the news also knocked the british unit to below N marks in london but a <unk> of <unk> helped sterling recoup some of its earlier losses + on the commodity exchange in new york gold for current delivery jumped $ N to $ N an ounce + the close was the highest since aug. N + estimated volume was a light two million ounces + in early trading in hong kong wednesday gold was quoted at $ N an ounce + boston co. the <unk> financial services concern that was rocked by a management scandal late last year has had a sharp drop in profitability mainly because a high-risk bet on interest rates <unk> + boston co. 's fall from grace is bad news for its parent shearson lehman hutton holdings inc. which has relied heavily on the banking and money management unit 's contributions in recent years + in N for example boston co. had an estimated pretax profit of at least $ N million while shearson managed net income of just $ N million + shearson does n't break out the earnings of its subsidiaries + but people familiar with boston co. 's performance say the unit had profit of around $ N million for the third quarter after barely breaking even for the first six months + shearson meanwhile posted net income of $ N million for the first nine months of the year down slightly from $ N million for the year-ago period + moody 's investors service inc. last week downgraded the long-term deposit rating of boston co. 's boston safe deposit & trust co. subsidiary to single-a-1 from <unk> citing problems in the company 's aggressively managed securities portfolio + john <unk> a moody 's vice president said boston safe deposit 's performance has been hurt this year by a <unk> in the maturities of its assets and liabilities + the <unk> exposed the company to a high degree of interest-rate risk and when rates moved <unk> beginning late last year and continuing into this year it cost them mr. <unk> said + mr. <unk> noted that boston safe deposit has taken some actions to better control <unk> management and improve controls in general and we think these will serve to improve credit quality + as some securities mature and the proceeds are reinvested the problems ought to ease he said + but he also cited concerns over the company 's mortgage exposure in the troubled new england real estate market + boston co. officials declined to comment on moody 's action or on the unit 's financial performance this year except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters ' results + an accounting controversy at the end of last year forced boston co. to admit it had <unk> pretax profits by some $ N million + the resulting scandal led to the <unk> of james n. von <unk> as boston co. 's president and to the resignations of the company 's chief financial officer and treasurer + the executives were accused of improperly deferring expenses and <unk> revenue early in an effort to dress up results and perhaps bolster <unk> bonuses + mr. von <unk> in turn attributed the controversy to <unk> errors by accountants and accused shearson of conducting a <unk> hunt + mr. <unk> of moody 's said the problems in the securities portfolio stem largely from positions taken last year + the company 's current management found itself locked into this he said + mexico exported an average of N barrels of crude oil a day at an average of $ N a barrel during N 's first eight months for a total of $ N billion <unk> <unk> s.a. said + the state petroleum monopoly said sales in the period gained N N and $ N million more than originally projected at an average of $ N a barrel on an export platform of N barrels a day + chicago + sears roebuck & co. is struggling as it enters the critical christmas season + yesterday the retailing and financial services giant reported a N N drop in third-quarter earnings to $ N million or N cents a share from a restated $ N million or N cents a share a year earlier + but the news was even worse for sears 's core u.s. retailing operation the largest in the nation + sears said its u.s. stores had a loss of $ N million their first deficit for the period in more than five years + analysts estimated that sales at u.s. stores declined in the quarter too + the results underscore sears 's difficulties in <unk> the everyday low pricing strategy that it adopted in march as part of a broad attempt to revive its retailing business + under the new approach sears set prices that were somewhere between its old regular and sale prices + the company said it would resort far less often to slashing prices to woo shoppers + sears officials insist they do n't intend to abandon the everyday pricing approach in the face of the poor results + instead a spokesman blames the dismal third-quarter showing on an environment that is being distorted by a very harsh climate for sales of durable goods which account for roughly two-thirds of sears 's annual merchandise volume + the new pricing strategy is working the spokesman asserted + he added that after an initial surge triggered by an advertising <unk> in march sears expected that the pricing program would n't have any effect on revenue + sears has been counting on growth coming from the large displays of <unk> merchandise it is adding to its stores over the next two years in what it calls power <unk> + but analysts say sears faces an especially <unk> challenge on the <unk> of the christmas shopping season + i believe everyday pricing in the current environment does n't work says walter <unk> of morgan stanley & co. pointing to soft <unk> sales + sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values + in what amounts to an admission that the transition has n't gone as smoothly as sears had hoped the giant retailer is now trying new ways to drum up business without appearing to abandon its <unk> strategy + the company is <unk> more special deals in its advertising and stores and it 's offering to defer finance charges on certain <unk> items + sears is also stepping up its television ads and changing its message + in a new tv ad for instance a woman going through the sunday newspaper brands as <unk> claims by other stores that they are offering goods for N N N N and N N off + by lowering prices throughout its stores she says sears has the right idea + but the ad also <unk> sears 's sales a topic that the retailer has avoided since switching to everyday pricing + when sears has a sale at a special price the woman in the ad declares it 's something you do n't want to miss + recent surveys by leo j. shapiro & associates a market research firm in chicago suggest that sears is having a tough time attracting shoppers because it has n't yet done enough to improve service or its selection of merchandise + the number of people who said they were more likely to shop at sears fell in september to N N from N N in march when sears <unk> the <unk> with ads about its new pricing strategy + moreover the number of people who <unk> cited lower prices as the reason for their interest in sears declined to N N in september from N N in march + just N N of the respondents mentioned brands in september up slightly from N N in march + only N N of the people in september cited sears 's friendly personnel + the power of price as an appeal which was very considerable in driving traffic in march and april has diminished says george <unk> president of shapiro & associates + you see some improvement in these other areas but it 's a very small and slow process + for the third quarter sears said its total revenue rose N N to $ N billion from $ N billion a year earlier + net income at sears 's merchandise group which includes international and credit card operations as well as u.s. stores fell N N + profit at sears 's <unk> insurance unit fell N N to $ N million because of hurricane hugo which <unk> the greatest single storm damage loss in the company 's history + sears said claims from the storm as expected reduced its third-quarter net by $ N million or N cents a share + <unk> is expected to absorb another big hit in the fourth quarter as claims pour in from the san francisco earthquake + but a spokesman said the quake wo n't have as big a financial impact on <unk> as hurricane hugo did + net income at sears 's dean witter <unk> services group meanwhile rose nearly N N to $ N million reflecting improvements in its basic stock brokerage and discover credit card businesses + profit at sears 's <unk> banker real estate group nearly <unk> to $ N million because of gains on sales of property + in new york stock exchange composite trading yesterday sears shares closed at $ N up N cents + oil imports to japan rose N N in september from year-earlier levels according to statistics released by the government 's ministry of international trade and industry + the imports totaling N million barrels were N N lower than august levels + the <unk> rise was partly because of higher demand for petroleum products and partly because of tax changes in N that left oil companies with high inventories in the <unk> period + imports of crude from the middle east grew N N from year-earlier levels and southeast asian crude imports grew N N + while mideast crude imports were higher compared with year-earlier levels they fell N N compared with august imports + southeast asian crude imports however were N N higher than august + this is in response to george <unk> 's business world column the housing market is a bigger mess than you think <unk> page sept. N + in houston we have seen how bad the housing problem can become + unused houses <unk> rapidly affecting the value of nearby homes in a <unk> effect the entire neighborhood can fall victim + at this stage some people just walk away from homes where the mortgage exceeds current market value + but most of them could have <unk> to keep up their payments they chose not to do so + the problem is so vast that we need to try innovative solutions in <unk> experiments + here are some ideas + N foreclosed homes could be sold by the fha for no down payment the biggest obstacle to young buyers but with personal liability for the mortgage no walking away by choice + N encourage long-term <unk> by <unk> one month 's payment off the <unk> end of the mortgage for every six months paid or perhaps have the down payment deferred to the end of the mortgage balloon but <unk> on a monthly <unk> basis as long as the owner remains the <unk> + N develop rental agreements with exclusive purchase options for the <unk> + an <unk> will in most every case be better for the home and neighborhood than a vacant house + in this way the house is not dumped on to a <unk> market + john f. merrill + houston + the federal housing administration veterans administration and the department of housing and urban development further <unk> the problem of affordable housing stock by buying in to their foreclosed properties of which there are <unk> many at an inflated balance due say $ N on a house worth $ N instead of allowing a free market to price the house for what it 's really worth + worse the properties then sit around deteriorating for maybe a year or so but are <unk> eventually because of the <unk> of the low down payment etc to a marginal buyer who ca n't afford both the mortgage and needed repairs and having little vested interest that buyer will walk away and the vicious cycle <unk> itself all over again + paul <unk> + italy 's unemployment rate rose to N N of the labor force in july from N N in april and was up from N N a year earlier according to quarterly figures from the state statistical institute + istat said a national survey during the first week of july showed the number of job <unk> was N up from N in april and from N a year ago + the unemployment rate was by far the highest in the southern so-called <unk> region + the southern unemployment rate rose to N N in july from N N in april and from N N a year earlier + istat said N more people were employed in july than in april + xerox corp. 's third-quarter net income grew N N on N N higher revenue earning mixed reviews from wall street analysts + quarter net for the <unk> and financial-services company rose to $ N million or $ N a share from $ N million or $ N a share in the year-earlier period + revenue rose to $ N billion from $ N billion + in new york stock exchange composite trading xerox closed at $ N a share up $ N + sales growth and profit in business products and systems xerox 's main business were disappointing said b. alex henderson who follows the company for prudential-bache securities inc + sales of xerox <unk> and other office products grew N N we expected growth of N N to N N mr. henderson said + <unk> margins slipped almost N N to N N of sales the analyst noted + still with competitors such as eastman kodak co. <unk> in <unk> sales xerox 's sales increases were encouraging says eugene glazer of dean witter reynolds inc + they are holding their own in a weak market and the restructuring is working he says + david t. <unk> xerox chairman and chief executive officer cited the restructuring and strong cost controls for the N N growth in profit from business products and systems operations + mr. glazer expects xerox to experience tough <unk> though in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains + in the quarter the <unk> & <unk> insurance unit reported $ N million before tax of capital gains from property and casualty operations + the subsidiary also increased reserves by $ N million however and set aside an additional $ N million for claims connected with hurricane hugo + for the nine months xerox earned $ N million or $ N a share up N N from $ N million or $ N a share + revenue rose N N to $ N billion from $ N billion + new orders for durable goods fell back slightly in september after shooting up the month before reflecting weakening auto demand after a <unk> of orders for new N models the commerce department reported + orders for military equipment household appliances machinery and other goods expected to last at least three years dipped N N last month to $ N billion after leaping N N in august the department said + most analysts had expected a sharper decline after the steep rise in august + moreover a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a <unk> + but many economists pointed to a N N september rise in orders outside the volatile transportation category + that suggests the manufacturing sector is not falling apart said <unk> <unk> an economist at manufacturers hanover securities corp. in new york + she added however it is not robust by any means + while a decline in orders for cars and civilian airplanes pulled down the orders total an enormous jump in orders for heavy military equipment <unk> it up + orders for capital defense goods skyrocketed N N and a government analyst said nearly all areas saw increases including airplanes missiles ships tanks and communications equipment + orders for military goods usually <unk> in september government officials say as the pentagon <unk> to spend its money before the new fiscal year begins oct. N + while all the numbers in the durable goods report were adjusted for seasonal fluctuations a commerce department analyst said that the adjustment probably did n't factor out all of the <unk> surge in defense orders + without the increase in defense bookings september orders would have plummeted N N + analysts were most unsettled by evidence the backlog of orders at factories is slipping + unfilled orders for durable goods rose N N in september to $ N billion after declining for the first time in N N years in august + in july unfilled orders grew N N + but analysts noted that excluding transportation where what they believe was a temporary surge in auto demand pushed up the figures order backlogs have declined for three months in a row + it means we 're eating into the bread that keeps us going + that is a little disturbing ms. <unk> said + it also means if you have a real <unk> in orders production will likely fall off very quickly because there is less to keep things going + capital goods orders outside of the defense sector tumbled for the second month in a row posting a N N drop after a N N decline + such steep drops in a category seen as a barometer of business investment would <unk> be grave news for the economy + but a commerce department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings a category that is showing declines only after a huge surge earlier this year + still milton hudson senior economic adviser at morgan guaranty trust co. in new york said if you look back a <unk> or so the evidence was pretty good of <unk> strength in the <unk> sector + now at least there are question marks about that and without any question the pace of growth has slowed + norfolk southern corp. directors authorized the railroad company to buy back as many as N million of its shares which would have a current value of more than $ N billion + the buy-back coupled with a nearly completed earlier purchase of N million shares would reduce shares outstanding by more than N N + the norfolk va. company has N million shares outstanding + in a statement arnold b. <unk> chairman and chief executive officer noted that the new repurchase program should serve to enhance shareholder value + a spokeswoman said the company will finance the buy-back with cash on hand borrowing and cash norfolk expects to generate + analysts said they expected the action and investors <unk> the move + in composite trading on the new york stock exchange norfolk southern shares closed at $ N up $ N + still analysts do n't expect the buy-back to significantly affect per-share earnings in the short term + the impact wo n't be that great said <unk> <unk> of first boston corp + that is in part because of the effect of having to average the number of shares outstanding she said + in addition mrs. <unk> said norfolk is likely to draw down its cash initially to finance the purchases and thus <unk> some interest income + longer term however the buy-back is expected to increase earnings especially after N mrs. <unk> said + moreover the extensive program in effect <unk> a floor for the stock price said joel price analyst for donaldson lufkin & jenrette + the buy-back is really a comfort to those who want to buy the stock that there is a price floor he said + at a certain price if the management thinks the stock is cheap they can go in and buy it + under the program norfolk plans to acquire shares in the open market + under the earlier plan norfolk was authorized in N to buy up to N million shares + it has purchased about N million of them + john b. <unk> N years old resigned as chairman of this diesel truck manufacturer effective upon appointment of a successor + last month mr. <unk> was succeeded by ralph e. reins as chief executive officer following several quarters of lackluster or declining performance + falcon holding group inc. said it agreed to acquire about N subscribers from first carolina cable tv limited partnership for about $ N million or roughly $ N a subscriber + the subscribers are in N different communities in georgia alabama and mississippi + completion of the sale is expected early next year falcon said + currently falcon has about N <unk> subscribers around the nation the company 's <unk> unit reported N revenue of about $ N million + in composite trading on the american stock exchange falcon closed at $ N unchanged + richard w. lock retired vice president and treasurer of <unk> inc. was named a director of this transportation industry supplier increasing its board to six members + usx corp. said it delayed the proposed initial public offering of common stock of <unk> titanium co. because of market conditions + <unk> titanium is owned jointly by usx and quantum chemical corp + usx which had n't set a date for the offering did n't disclose any timetable for the offering + your oct. N editorial <unk> <unk> & <unk> on the recent education summit was like most pieces on the subject of education it had little to say + oddly though on the very same page you printed a comment that addresses one of the most serious <unk> of the american education system + unfortunately the comment was buried in another article so it could not stand out in an education context + in the manager 's journal <unk> kageyama in commenting on many differences between american and japanese culture said japanese children are raised in a way many americans would find severe + after a <unk> <unk> early <unk> they are exposed to rigid discipline as soon as they enter school + what far too many people concerned about education either fail to understand or choose to ignore is that american children on the whole are among the most <unk> in the world making any attempt at improvements in the mode of education potentially unsuccessful + unless parents and educators alike start to develop more discipline in children all the worthy concern discussions and actions will not solve the problem + allen b. <unk> <unk> <unk> + retired adm. william j. <unk> former chairman of the joint chiefs of staff and robert p. <unk> chairman and chief executive officer of schering-plough corp. were elected directors of this securities firm + the board expanded to N seats + tuesday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + roy e. <unk> the company 's president and chief operating officer since sept. N was named to its board + the appointment increased the number of directors to N three of whom are company employees + simpson is an auto parts maker + japan has climbed up from the <unk> of world war ii and a gross national product of about $ N per capita to reach the <unk> class among industrialized nations + now this remarkable economic growth seems to be coming to an end because the government has not converted itself into a modern democratic developed nation mode of operation + until N when japan joined the $ N per capita gnp club of the advanced countries it was a model developing nation + the government built ports bridges highways schools hospitals and <unk> + when industries were weak it protected them + it gave the japanese people a value system based on the <unk> that given the country 's lack of natural resources they must work hard to create value through exports and buy food with the surplus + individual prosperity inevitably would result + that system has worked + the standard of living has increased steadily over the past N years more than N N of the people consider themselves middle class + the people have given their leading and only credible political party the liberal democratic party clear and <unk> power for those N years + the ldp won by a <unk> in the last election in july N + but less than two years later the ldp started to <unk> and dissent rose to unprecedented heights + the symptoms all point to one thing japan does not have a modern government + its government still wants to sit in the driver 's seat set the speed step on the gas apply the <unk> and steer with N million people in the back seat + in a modern system the government 's role is to give the people as much choice as possible and to keep them well informed so they are capable of making a choice + it also allows people to buy the best and the cheapest goods from anywhere in the world + the japanese government does n't allow this + the ministry of agriculture and <unk> actually is a ministry for farmers and <unk> instead of a ministry of provisions + the ministry of health and welfare is a ministry of doctors and pharmaceutical companies rather than an organization dedicated to protecting the health of the people + the ministry of education is nothing but a <unk> for licensed teachers and certainly does not act on behalf of students + the ministry of construction spreads concrete throughout the country and boasts in international conferences that japan 's <unk> roadway per capita is the longest in the world but they seldom think of the poor commuters who spend so much time sitting in traffic + the ministry of transportation serves the industry certainly not the passengers who must pay extraordinarily high prices + and the ministry of foreign affairs works for itself supporting japanese diplomats who <unk> abundant aid money around the world to ensure that their seat at the dinner table is next to the host 's + this ministry has done nothing to correct the <unk> and <unk> that are at the root of japan 's deteriorating image + instead it seems to be using foreign pressure and even the trade conflict to expand its <unk> of influence <unk> a <unk> other ministries + all this illustrates that japanese ministries still have a provider mentality they do not serve the people and particularly not consumers + they serve the industries and the special-interest groups + the rest of the world accepted such methods when japan was developing + japanese put up with it because the government provided job stability and growing <unk> + japan is not a political country + it is a bureaucratic country + the diet plays a minor role compared with the powerful bureaucratic system + most bills are drafted by bureaucrats not politicians + the diet does n't normally even debate bills because the opposition parties are so often opposed to whatever ldp does that it would be a waste of time + so most bills are passed without full discussion particularly difficult bills are passed in the absence of the opposition parties + a recent example is the N N consumption tax on all commercial activities + this makes enormous sense in japan where direct tax accounts for more than N N of revenues and the capture rate of direct tax is so unfair + if you are a <unk> man <unk> N N captured + if you are a retailer N N and a farmer N N + to correct this <unk> most people would have favored an indirect tax like the consumption tax + but the bill was passed without debate in the diet in the absence of the opposition + as a result the japanese people did n't know what to expect when the new law was introduced on april N + they were frustrated by the longer <unk> at the <unk> and the small coins given as change + all of a sudden prices were no longer in denominations of N or N + they were N or N + pockets exploded with <unk> coins + while people were <unk> their change the ldp politicians were caught in scandals + money such as in recruit 's political donations and women as in the cases of prime minister <unk> <unk> and secretary general <unk> <unk> seldom have caused political scandals in japan + <unk> most men were a bit <unk> about the sex scandals though they were <unk> about recruit women were upset about both and surged to the polls + in the recent upper house and tokyo metropolitan congressional elections in which the socialist party won a runaway victory N N of all women voted as opposed to the usual N N + it is difficult to analyze how much of their anger was due to recruit the sex scandals or the <unk> coins in their <unk> but they obviously were voting to punish the ldp + taken by surprise the socialist party is busy changing its <unk> + it 's now ok to deal with the u.s. but not the soviet union + nuclear power plants are acceptable + the <unk> security treaty can continue sort of + and so on + against the rapid cosmetic overhaul of the socialist party the ldp has been <unk> + now is the time to reform the government from a provider developing-country vanguard role to that of a modern industrialized nation in which consumers have the ultimate choice + if the ldp as currently composed ca n't make the <unk> then it should split into two parties + one party could stand for consumer interests small government free trade and <unk> to put japan clearly among the most developed and open countries + the other party could continue on the traditional track of the ldp representing the manufacturers ' preference for larger government control regulation and <unk> + the ldp must make a decision immediately lower house elections must take place before june + in the current mood of the japanese people journalists and even some <unk> giving power to the <unk> might be good for the ldp <unk> it of past <unk> + we must not forget however that such a <unk> political experiment could cause a global <unk> wave of shocks in real-estate and financial markets + at the most there is only nine months before the ldp <unk> burns out + mr. <unk> is managing director of <unk> & co. in japan + early this century diamond mining in the <unk> dunes where the <unk> desert meets the atlantic ocean was a day at the beach + men would <unk> in the sand looking for <unk> stones + it was as easy as collecting sea <unk> at <unk> + men are still <unk> the beach with <unk> and hand <unk> searching for that unusual <unk> + but only after a fleet of N <unk> <unk> vehicles <unk> to de beers consolidated mines ltd. the world 's diamond <unk> do their work + last year N million tons of desert were moved from one <unk> to another to recover N <unk> which comes to N tons of sand per carat or <unk> <unk> + oh yes the atlantic was also pushed back N yards + if there 's diamonds out there we 'll get to them says <unk> johns de beers 's engineering manager + here <unk> between shifting dunes and <unk> waves at the world 's most <unk> diamond dig lies the earth 's most precious <unk> box + thanks to centuries of <unk> by mother nature first in the <unk> current of the orange river that carried the stones from south africa 's interior then in the cold <unk> of the ocean and finally in the <unk> <unk> of the desert N N of the diamonds uncovered are of <unk> quality + while other mines might yield more <unk> a higher percentage of them go to industrial use + since this <unk> <unk> is too big to fit in a bank vault it has been turned into one + months after railway worker <unk> <unk> first picked up a diamond from the sand in N the german <unk> who controlled namibia proclaimed a wide <unk> of the desert about N miles north from the orange river and N miles inland from the atlantic a restricted area a <unk> normally reserved for military operations + when the germans lost world war i they lost namibia to south africa and the diamonds to ernest oppenheimer <unk> of <unk> american corp. and de beers + today no one gets in or out of the restricted area without de beers 's <unk> approval + the mining zone has thus remained one of the most <unk> places in africa + ghost towns <unk> the <unk> dunes proving diamonds are n't forever + <unk> the mine headquarters is a <unk> corporate <unk> of N residents + <unk> <unk> the streets at night and <unk> <unk> <unk> with long straight <unk> <unk> in from the desert to drink from water <unk> + on most days the desert 's heat and the cool of the ocean combine to create a <unk> like a damp <unk> + the wind <unk> with sand never seems to stop + still miners from all parts of namibia as well as professional staff from de beers 's head offices in south africa and london keep coming + and <unk> boasts <unk> besides diamonds + there are six video rental shops three restaurants one <unk> and N sports and recreation clubs for everything from <unk> to lawn bowling + the pride of <unk> is the <unk> golf course with the largest sand trap in the world + last year when the rising orange river threatened to <unk> the course the same engineers who are pushing back the atlantic rushed to build a wall to hold back the flood + nothing is too good for our golf course says tony george a mining engineer + despite fears the mine may be partially <unk> by the new <unk> government following next month 's elections <unk> the country from south african control de beers engineers are working to extend the mine 's productive life for another N years from the current estimate of N + huge machines that look as though they came from the star wars <unk> scene lumber among the dunes + <unk> vacuum <unk> probe the sand like giant <unk> a <unk> <unk> <unk> <unk> with <unk> instead of seats <unk> through <unk> of <unk> sand tracks and <unk> belts <unk> sand to the <unk> plants <unk> the beach + then there is the <unk> sea wall N yards long and N yards thick <unk> into the ocean + made of sand it receives <unk> <unk> against the <unk> waves + when the mining in front of the wall is complete it is moved <unk> + a companion <unk> that helps hold back the sea looks like a <unk> <unk> + engineers first used concrete blocks to bolster the barrier but the ocean <unk> them aside like <unk> + then someone decided to try <unk> <unk> equipment that <unk> held against the waves + the caterpillar people are n't too happy when they see their equipment used like that <unk> mr. george + they figure it 's not a very good <unk> + despite all these <unk> most of the diamonds are still found in the sand <unk> away by the men <unk> <unk> and <unk> the <unk> named <unk> <unk> who <unk> in the wake of the <unk> + <unk> in blue and gray <unk> they are supposed to concentrate on cleaning out <unk> and not strain their eyes looking for diamonds + but should they spy one the company will pay a bonus equal to one-third its value + for these workers at the bottom of the mine 's pay scale this is usually enough to overcome the temptation to steal a crime that could earn them up to N years in jail + still employees do occasionally try to <unk> out a <unk> or two + one man <unk> several diamonds in the <unk> of his tie + another <unk> a hole in the <unk> of his <unk> + a food <unk> <unk> stones in the false bottom of a milk <unk> + none made it past the body searches and <unk> of mine security + disaster states are n't jumping to raise taxes for relief and recovery + not yet anyway + just after hurricane hugo battered south carolina some officials talked of perhaps adding a penny to the state gasoline tax or raising property taxes + gov. campbell responded they 're <unk> <unk> when there 's been a hanging in the family + a spokesman says the governor believes he can avoid increases by relying on federal aid and shifting funds in state programs + still hugo 's impact may revive unsuccessful proposals to give local governments authority to levy sales taxes + a spokesman for north carolina gov. martin says hugo has n't prompted proposals for state or local increases + california where earthquake damage may top $ N billion plans a special legislative session + <unk> relief is likely + legislators are talking about temporary rises in sales or gasoline taxes although gov. deukmejian says they should be a last resort + needs are n't clear and the state constitution makes increasing taxes and spending very difficult + but some legislators think the time may be <unk> to revise the constitution + the irs will pay if its error burdens you with bank charges + policy statement <unk> sets out terms + as a result of an <unk> irs levy on a bank account a taxpayer may incur administrative and <unk> charges + if the irs admits its error and the charges have been paid it will reimburse a taxpayer who has n't refused to give timely answers to irs inquiries or has n't contributed to continuing or <unk> the error + the irs recently amended the policy to cover <unk> charges for checks lost by the irs + if the irs asks for and gets a replacement for a check that it concedes it lost in processing it will reimburse the taxpayer for the <unk> charge on the original + <unk> claims must be filed with the irs district or <unk> director within a year after the expense <unk> + if the irs seeks <unk> interest because of the lost check you should request interest <unk> publisher prentice hall notes + just five acres more are all we need to feel really at home they say + a couple we 'll call the <unk> spent nearly $ N on a <unk> plot and main home and have an old $ N mortgage exempt from the new limit on <unk> deductions + they plan to expand the home site by buying five <unk> acres for $ N borrowed against a first mortgage on the five acres and also collateralized by the N acres + their debt will be well under the $ N million limit on borrowing to acquire build or improve a home that <unk> for <unk> deductions + as you can guess the <unk> want to <unk> <unk> interest on the $ N loan + but irs private ruling N notes no rule or court case bears directly on the issue of adding land to a principal residence + so the irs has drawn a rationale from the sale of a home site split in two and sold in different years to the same buyer a court let the seller in that old case treat this as the sale of one residence + thus the irs says the <unk> ' $ N loan is <unk> debt and interest on it is fully deductible + earthquake victims facing imminent filing and payment deadlines will get <unk> and penalty <unk> like those provided for hugo 's victims irs notice N has details + notice N offers added relief for <unk> concerns that must file pension and <unk> returns + reports of payments to independent contractors for services must be filed by businesses but do n't bet that contractors ' <unk> income will be detected that way + the general accounting office estimates that N N of irs audits do n't spot companies that fail to file the reports + <unk> <unk> + a claim by peter <unk> of new york that a <unk> paid him $ N to go into a bank and change $ N in small bills into large bills is <unk> the tax court found + it held that <unk> is taxable on $ N of <unk> income + why be a <unk> for charitable gifts a <unk> asks + a retired electrical engineer we 'll call ben works <unk> as a consultant but he does n't want to earn so much that social security reduces his benefits + so he has arranged for a university foundation to set up a <unk> fund for <unk> engineering students + he plans to tell clients to pay certain fees directly to the foundation instead of to him he would <unk> those fees from income reported on his return + so he asked the irs if the plan would work + well notes irs private ruling N a fundamental principle is that income must be taxed to whoever earns it + the rule goes back at least as far as a N supreme court decision robert <unk> of shearson lehman hutton says + if you <unk> your income to another you still have controlled its <unk> and enjoyed the <unk> of your labor even if indirectly + ben earns any fees sent directly to charity and is taxable on them the irs says of course he also may take a charitable deduction for them + briefs + ways and means veteran <unk> d. <unk> moves to the house budget committee rep. <unk> d. md <unk> him + seattle 's license fees for adult <unk> shows vary from those for other <unk> <unk> without serving a substantial government interest and are unconstitutional the <unk> appeals court holds for <unk> investments inc + blue-chip advertisers have plenty of complaints about the magazines they <unk> in ranging from inadequate consumer research to ad clutter and a seemingly <unk> proliferation of special interest magazines + criticism from such big advertisers as <unk> lauder inc. colgate-palmolive co. and seagram co. put a <unk> on the euphoria at the american magazine conference here + the conference opened monday with <unk> reports about consumer magazines ' growth in circulation and advertising revenue in the past year + magazines are not providing us <unk> information on circulation said edgar bronfman jr. president and chief operating officer of seagram in a panel discussion + how do readers feel about the magazine + how deeply do they read it + research does n't tell us whether people actually do read the magazines they subscribe to + <unk> mark chief executive of colgate-palmolive said advertisers lack detailed <unk> and geographic <unk> of magazines ' audiences + we need research that <unk> us that magazines are a real value in reader 's lives that readers are really involved + the critics also <unk> the magazine industry for something executives often are very proud of the growth in magazine titles during the 1980s + leonard lauder president and chief executive officer of <unk> lauder said consumer magazines are suffering from what he called <unk> the increasing number of magazines that target the <unk> interests of readers + <unk> <unk> our advertising dollars said mr. lauder + we are being <unk> + we are constantly faced with deciding which partnerships with magazines we can keep + he added there 's probably even a magazine for <unk> <unk> but the general interest magazine is something we all miss and it should come back + mr. lauder also attacked what he sees as the wide <unk> of <unk> a fashion magazine published by <unk> communications inc. and criticized the practice of <unk> ads at the front of magazines + readers do n't want to face all those ad pages at the front of a magazine he said + magazine editors did not take the criticisms lying down + we spend a fortune on research information said steve <unk> publisher of meredith corp. 's metropolitan home + and <unk> brown editor of <unk> <unk> publications inc. 's <unk> fair said advertisers are frequently asked to take advertising positions in the back of her magazine to relieve ad clutter + but advertisers would n't think of it she said + bernard <unk> president of <unk> <unk> added our research shows we sell more of our heavier issues because readers believe they are getting more for what they pay for + wall street securities giant salomon inc. posted a big unexpected earnings gain in the third quarter buoyed by its securities trading and investment banking activities + salomon said net income soared to $ N million or $ N a share from $ N million or N cents a share a year earlier + revenue more than doubled to $ N billion from $ N billion + a salomon spokesman said its stock bond and foreign exchange trading as well as its investment banking operations were mostly responsible for the earnings jump + the earnings were fine and above expectations said michael w. <unk> an analyst at first boston corp + nevertheless salomon 's stock fell $ N yesterday to close at $ N a share in new york stock exchange composite trading + i suspect october was n't as good as the third quarter and they 'll have difficulty matching the third quarter in the fourth quarter mr. <unk> said + but some analysts say salomon has turned the corner + i upgraded the firm to my buy list because i certainly see signs of improvement says lawrence <unk> an analyst at prudential-bache securities + the market has been overly harsh to them + analysts say investors remain <unk> toward salomon because of its volatile earnings + in the first quarter salomon had a record loss of $ N million on revenue of $ N billion + but in the second quarter salomon posted a record $ N million net on revenue of $ N billion + for the real estate industry a <unk> for the 1990s will be buy more than build + that 's the word expected to be on the <unk> of the more than N developers <unk> advisers and real estate financiers slated to attend a four-day conference beginning here today sponsored by the urban land institute + the <unk> is a <unk> research and education group based in washington d.c. with N members nationwide + with the market overbuilt builders are finding limited opportunities and increased risks + developers and money managers are looking for bargains among the thousands of financially troubled properties around the country + real estate professionals now often bill themselves as turnaround experts and workout specialists + conference <unk> are expected to be <unk> about the workings of the recently formed resolution trust corp. a federal agency charged with <unk> of an estimated $ N billion of real estate dumped in government hands by insolvent savings and loans + developers are also <unk> the real estate portfolios of major corporations + some plan to pursue foreign development ventures mostly in europe + and other developers may shift from commercial to residential development in the u.s. + there are n't as many economically viable alternatives for real estate developers in this country as N years ago says charles shaw a chicago-based real estate developer + so developers are saying they will look into <unk> properties + they 'll go into someone else 's <unk> as long as it 's <unk> than the one they 're in now + developers are also forming more joint ventures with pension funds and insurance companies that can finance big projects + the builders are more willing to give up some equity and rely on management and consulting fees to stay afloat in the soft market + developers are <unk> up with institutions often acting as project managers says <unk> york <unk> president and president of york properties inc. of <unk> n.c + they are growing more <unk> about their role + real estate firms are also using their alliances with financial institutions to <unk> acquisition funds + why should you beat your brains out fighting the environmentalists the neighborhood groups dealing with traffic <unk> <unk> and fighting city hall then try to convince a lender to lend you money in an overbuilt market when you can get pension fund money buy a portfolio sell off pieces off it and play your own game says jack <unk> managing partner of the los angeles office of kenneth leventhal inc. a national accounting firm + but experts say that when it comes to <unk> properties finding diamonds in the rough is n't easy + the level of interest in the rtc 's properties has been greater than expected and has come from larger companies than initially anticipated says <unk> ross leventhal 's <unk> partner + and to succeed in the turnaround business he says developers may have to put in a lot of money and time + finding pension funds and other sources willing to invest is a high priority + <unk> david <unk> director of real estate research for salomon brothers inc. a theme of the urban land conference will be take a pension fund manager to lunch + sheraton corp. and pan american world airways announced that they and two soviet partners will construct two <unk> hotels within a mile of red square in moscow + u.s. and soviet officials hailed the joint project as a new indication of the further <unk> in u.s.-soviet relations + this is an outstanding example of how the east and the west can work together for their mutual benefit and progress said soviet ambassador <unk> <unk> who <unk> a signing <unk> for the venture 's partners at the soviet embassy here + commerce secretary robert mosbacher who attended the <unk> called the undertaking a historic step in the evolution of u.s.-soviet ties + he added that it likely will have a <unk> effect in <unk> further trade between the two countries + the project will be the largest <unk> joint venture to be undertaken in the soviet union in recent years + one of the hotels to be called the sheraton moscow will have N rooms and will cost an estimated $ N million to build + the <unk> hotel will be on gorky street and initially will cater mostly to business travelers + it will have a russian <unk> an english <unk> a <unk> and japanese and italian restaurants according to a sheraton announcement + the hotel is scheduled to open in N + the second hotel to be called the <unk> hotel is to be constructed at a site even closer to red square + details about its size and cost have n't yet been determined + sheraton a subsidiary of itt corp. will have a N N share in the two hotels pan american a subsidiary of pan am corp. will have a N N share + the soviet owners will be <unk> moscow 's city governing body and aeroflot the soviet national airline + although a finnish group has a minority interest in an already operating moscow hotel the <unk> am venture will be the first joint-venture hotels in the soviet union to have as much as N N foreign ownership + u.s. companies account for less than N N of the N or more soviet joint ventures that have been announced since the soviets began encouraging such <unk> in N + but some u.s. companies are negotiating projects that could be among the biggest ones to be launched + chevron corp. amoco corp. <unk> co. and eastman kodak co. are among the u.s. companies known to be considering such ventures + sheraton and pan am said they are assured under the soviet joint-venture law that they can <unk> profits from their hotel venture + the sheraton moscow will charge about $ N to $ N a day for each of its rooms and it will accept payment only in currencies that can be traded in foreign exchange markets according to a sheraton executive + thomas <unk> pan am 's chairman said the u.s. airline 's participation is a natural <unk> of its current arrangements with aeroflot to jointly operate <unk> new <unk> flights + he said the rising volume of passenger traffic on this route justifies a major investment in new <unk> moscow hotels + david <unk> was named to the new post of executive vice president of the maxwell macmillan group of this communications giant + mr. <unk> takes primary responsibility for the electronic and <unk> group + he had been group vice president of the <unk> group + also <unk> <unk> formerly a vice president at maxwell was named group vice president with responsibility for various electronic and <unk> companies + <unk> honda 's picture now hangs with henry ford 's in the u.s. automotive hall of fame and the <unk> jeopardy is soon to be <unk> + but no matter how much japan gets under our skin we 'll still have mom and apple pie + on second thought make that just mom + a japanese apple called the fuji is <unk> up in <unk> the way <unk> did on u.s. roads + by N it will be planted more often than any other apple tree according to a recent survey of six <unk> <unk> by washington state university <unk> robert norton + some fruit <unk> say the fuji could someday tumble the red delicious from the top of america 's apple <unk> + it certainly wo n't get there on looks + compared to the red delicious the <unk> of apple <unk> the fuji is <unk> more <unk> generally smaller <unk> <unk> <unk> with <unk> of red + to hear most u.s. growers tell it we 'd still be in <unk> if the <unk> had <unk> one to <unk> + but how sweet it is + it has more sugar than any apple we 've ever tested says <unk> greene a university of massachusetts <unk> or apple scholar + it has a long shelf life and does n't fool the public says <unk> <unk> an <unk> wash. grower who is <unk> fujis and spreading the good word about them + it does n't look nice on the outside while getting <unk> inside + mr. <unk> <unk> sharp at N has picked and packed a <unk> <unk> of apples over the past N years + he is known as the father of the <unk> <unk> smith a <unk> different apple that the conventional wisdom once said would never catch on + it did shaking the apple establishment to its roots + now even more radical changes seem <unk> as the grand old <unk> of american apples plays the role of <unk> <unk> + the fuji is going to be no. N to replace the red delicious he says + the delicious <unk> wo n't end anytime soon + new apple trees grow slowly and the red delicious is almost as entrenched as mom + its roots are <unk> with the first trees appearing in N in an <unk> near peru iowa to be exact + for more than N years it has been the apple of our eye + a good delicious can indeed be delicious + more than twice as many red delicious apples are grown as the golden variety america 's no. N apple + but the apple industry is <unk> for change + red delicious has been <unk> and its prices have dropped below the cost of production says washington state 's mr. norton + the scare over <unk> a growth regulator that makes apples <unk> and <unk> but may be <unk> made consumers shy away from the delicious though they were less affected than the <unk> + the <unk> and <unk> lower prices combined with cancer fears was a very serious blow to growers + a lot of growers wo n't be around in a few years says mr. norton although they have stopped using <unk> + one may be william broderick a sterling mass. grower + this is beautiful stuff he says looking <unk> at big boxes of <unk> red delicious next to his <unk> + but i 'm going to lose $ N to $ N on it + i 'm going to have to get another job this year just to eat + besides <unk> prices he has been hit recently by <unk> a <unk> <unk> of mice <unk> and bugs + some N <unk> and N diseases <unk> <unk> and <unk> through growers ' <unk> including <unk> <unk> <unk> <unk> black <unk> and the <unk> <unk> + even if a grower <unk> them back his $ N <unk> <unk> might <unk> off to the neighbors ' <unk> instead of <unk> his mr. broderick says + though growers ca n't always keep the worm from the apple they can protect themselves against the price <unk> of any one variety by diversifying into the recently imported <unk> a sweet new zealand native the <unk> <unk> reportedly thomas jefferson 's favorite apple <unk> kinds like the liberty + i 've <unk> out a lot of delicious and <unk> the trees with many different <unk> says steve wood a west lebanon n.h. grower <unk> through his <unk> poverty lane <unk> on a <unk> autumn day recently + i 've got N kinds of apples + here 's a <unk> he <unk> picking one off a tree + he <unk> it <unk> and throws it down + it 's a real dog + supermarkets are getting into the variety act too + they still buy apples mainly for big red good looks that 's why so many taste like <unk> ' <unk> bags + but <unk> counts more than it once did and stores are expanding shelf space for <unk> but <unk> and often <unk> apples + rather than sell <unk> delicious maybe we can sell <unk> fujis says chuck <unk> <unk> director for <unk> <unk> inc. a minneapolis supermarket chain and food distributor + the fuji is a product of <unk> japanese <unk> engineering which <unk> it N years ago at a government research <unk> + japanese researchers have <unk> dozens of <unk> of fujis to <unk> its color taste and shelf life + now the best of them age as <unk> as <unk> the industry 's gold standard for <unk> + in the <unk> of <unk> apples the fuji 's track record stands out during the past N years it has gone from almost <unk> to some N N of japan 's market + the japanese apple market is very <unk> to high quality says david lane a scientist at a canadian <unk> research center in <unk> british columbia and so apples are more of a <unk> there than a big food commodity + the u.s. department of agriculture estimates that this year americans will eat about N N more fresh apples per capita than the japanese + the fuji is still small potatoes in the u.s. sold mainly in fruit <unk> + but in california says craig <unk> a <unk> grower there 's a fuji apple <unk> + once somebody <unk> one they get <unk> + mr. <unk> the washington grower says that he could sell fujis to taiwan buyers at $ N a box if he had them + taiwan already is a big importer of fujis from other places he adds + but his first crop wo n't be picked till next year + i expect to see the demand exceed supply for fujis for the next N to N years he adds + washington red delicious by the way are <unk> for less than $ N a box these days + mr. <unk> sees fujis in part as striking a blow against the <unk> of u.s. apples by supermarkets + when the chain stores took over there was no longer a connection between grower and consumer + a guy is sitting up in an office deciding what you 're going to eat + after all until the 1950s even the red delicious was a firm <unk> <unk> + then as growers <unk> them more for looks and to satisfy supermarket chains ' demands of long-term storage the red went into decline + now those red <unk> things stores sell in summer are <unk> lovely but usually not good eating + they do deserve respect however they are almost a year old probably equal to about N in human years + the fuji to be sure has <unk> too + it <unk> later than most apples and growing it in u.s. areas with <unk> <unk> may be tricky + moreover the <unk> fuji must compete with an increasingly <unk> delicious + mr. broderick the massachusetts grower says the big boss at a supermarket chain even rejected his red delicious recently because they were n't <unk> and brushed for extra <unk> + and he had n't used <unk> which many growers employ to <unk> their delicious apples for greater eye appeal + still mr. <unk> points out <unk> became popular without big red looks so why not fujis + he sees a shift in american values at least regarding apples toward more emphasis on substance and less on <unk> + taste has finally come to the <unk> he says + or for that matter the core + <unk> <unk> inc. said its board increased the number of shares of common stock to be purchased under a previously authorized program to N million from N million + the maker of engineered materials has acquired more than N million shares under the program + the state attorney general 's office filed suit against five new york brokerage firms charging them with responsibility for much of a $ N million loss incurred by the state treasurer 's office in N + the suit sets the firms ' liability at more than $ N million + the firms are morgan stanley & co. salomon brothers inc. county natwest government securities inc. greenwich capital markets inc. and goldman sachs & co + the firms have all said that west virginia 's suit is without merit + on friday the firms filed a suit against west virginia in new york state court asking for a <unk> judgment <unk> them of liability + that suit is pending + the suits <unk> to a $ N million loss disclosed in december that was suffered by west virginia 's consolidated investment pool + the pool invested idle cash for many state agencies and local governments + in its suit the attorney general 's office alleges that brokers encouraged members of the treasurer 's office to engage in <unk> high-risk transactions that benefited the brokers + few people are aware that the federal government <unk> almost as much money as it <unk> + from N to N while federal budget deficits totaled $ N trillion the government issued $ N billion of new direct loans and an additional $ N billion of new primary loan guarantees + these figures <unk> secondary guarantees deposit insurance and the activities of <unk> enterprises a huge concern in its own right as detailed on this page may N + federal credit programs date back to the new deal and were meant to break even financially + since the 1950s federal lending has experienced extraordinary growth in credit volume subsidy rates and policy applications spurred on by the growth of government in general and budget <unk> and deceptive management in particular + as we will see many of these obligations do n't show up as part of the federal deficit + but recent events indicate that federal credit is out of control + student loan defaults remain high at about N N and the program has been rocked by allegations of fraud and <unk> + farmers home administration <unk> loans have turned into de <unk> <unk> programs losses over the next three years are expected to exceed $ N billion + defaults on veterans affairs loan guarantees have <unk> in the past eight years + last month the general accounting office reported that defaults in federal housing administration guarantees were five times as high as previously estimated and that fha 's equity fell to minus $ N billion + <unk> 's findings are particularly troubling because the fha has about $ N billion in obligations outstanding and had previously been considered one of the most financially secure credit programs + scores of other credit programs subsidizing agriculture small business exporters defense energy transportation and others are less visible but in no better shape + if the programs continue their present path the potential government losses are staggering the federal government holds $ N billion in direct loans outstanding and backs an additional $ N billion in primary guarantees + secondary guarantees of pools of fha and <unk> loans by the agency known as ginnie mae currently exceed $ N billion + although external events have contributed to the <unk> the principal causes of the current crisis are internal and generic to all programs + to reduce the risks while still retaining the legitimate benefits these programs can provide credit policy must N use credit to improve the operation of capital markets not to provide subsidies + there is a fundamental conflict between providing a subsidy and maintaining the integrity of a credit program + if the program is meant to provide a subsidy collecting the debt <unk> the original goal + thus subsidized loans tend to turn into <unk> programs with increasing subsidy and default rates over time + to avoid this problem government should issue credit only if it intends to use every legal method to collect + in contrast credit programs can be appropriate tools to improve the operation of capital markets + for example legal restrictions on interstate banking once <unk> the supply of credit to the agricultural sector + farm lending was enacted to correct this problem by providing a <unk> flow of <unk> funds + however this in no way justifies the huge government subsidies and losses on such loans + credit policy should separate these two competing objectives and eliminate aspects that provide the subsidy + for example student loans currently attempt to subsidize college attendance and <unk> problems created by the fact that students ' future earnings are not accepted as collateral + the program provides highly subsidized loans to any student whose family earns less than a particular amount + high default rates a low interest rate and government coverage of all interest costs while the student is in school make program costs extremely high + families that do not need the loan can make money simply by putting the loan in the bank and paying it back when the student graduates + in contrast a student loan program that was meant solely to correct <unk> <unk> would allow loans for any student regardless of family income at market or <unk> rates + while the student was in school interest costs would either be paid by the student or added to the loan balance + this program combined with cash grants to <unk> students would reduce program costs and much more effectively target the intended beneficiaries + N provide better incentives + given the structure of most credit programs it is surprising that default rates are not even higher + guarantee rates are typically N N giving lenders little reason to screen customers carefully + reducing those rates moderately say to N N would still provide substantial assistance to borrowers + but it would also encourage lenders to choose more <unk> customers and go a long way toward reducing defaults + for example the small business administration has had reasonable success in reducing both guarantee rates and default rates in its preferred lenders ' program + borrowers ' incentives are equally <unk> + since the government has a dismal record of collecting bad debts the costs to the <unk> of <unk> are usually low + in addition it is often possible to obtain a new government loan even if existing debts are not paid off + simple policy <unk> in this case would be to improve debt collection taking the <unk> off contracted collection agencies and to deny new credit to <unk> + these provisions would be difficult to enforce for a program intended to provide a subsidy but would be reasonable and effective devices for programs that attempt to offset market <unk> + N record the true costs of credit programs in the federal budget + since the budget measures cash flow a new $ N direct loan is treated as a $ N expenditure even though at least part of the loan will be paid back + loan guarantees do n't appear at all until the <unk> defaults so new guarantees do not raise the deficit even though they create future liabilities for the government + by converting an expenditure or loan to a guarantee the government can ensure the same flow of resources and reduce the current deficit + predictably guarantees outstanding have risen by $ N billion since N while direct loans outstanding have fallen by $ N billion + the true budgetary cost of a credit subsidy is the discounted value of the net costs to government + this figure could be estimated using techniques employed by private lenders to forecast losses or determined by selling loans to private owners without federal guarantees + neither technique is perfect but both are better than the current system which <unk> the costs of new credit programs by amounts that vary substantially and average about $ N billion annually according to the congressional budget office + a budget that reflected the real costs of lending would eliminate incentives to convert spending or lending programs to guarantees and would let taxpayers know what congress is committing them to + N impose standard accounting and administrative practices + creative accounting is a <unk> of federal credit + many agencies roll over their debt paying off <unk> loans by issuing new loans or converting defaulted loan guarantees into direct loans + in any case they avoid having to write off the loans + some agencies simply keep bad loans on the books as late as N the <unk> bank held in its portfolio at face value loans made to cuba in the 1950s + more seriously <unk> has carried several billion dollars of defaulted loans at face value + until <unk> 's recent audit fha books had not been subject to a complete external audit in N years + the administration of federal credit should closely parallel private lending practices including the development of a loan loss reserve and regular outside audits + establishing these practices would permit earlier <unk> of emerging financial crises provide better information for loan sales and <unk> decisions and reduce fraud + government lending was not intended to be a way to <unk> spending figures hide fraudulent activity or provide large subsidies + the reforms described above would provide a more limited but <unk> safer and ultimately more useful role for government as a lender + without such reforms credit programs will continue to be a large-scale high-risk proposition for taxpayers + mr. <unk> is an assistant professor of economics at <unk> + malcolm s. <unk> was named vice president and senior officer in charge of equipment leasing to municipalities a new effort of this bond insurer + mr. <unk> had been vice president and treasurer of <unk> corp + president bush is considering casting a line-item veto as a test to determine whether the courts will rule that he has such authority + mr. bush has long <unk> for passage of a bill or a constitutional amendment that would <unk> give him a line-item veto which would enable him to kill individual items in a big spending bill without having to kill the entire bill + he has argued that such presidential power is necessary to rein in congressional spending + but some analysts particularly conservative legal scholars have urged mr. bush not to wait for explicit authorization but simply to <unk> that the constitution already <unk> gives him the power to exercise a line-item veto + such an <unk> most likely would bring about a court challenge from congress that would clarify whether a president already has such power + white house spokesman marlin fitzwater confirming comments made this week by vice president dan quayle said mr. bush is interested in finding a suitable test case + but he also said that exercising a test line-item veto is n't a top initiative on the president 's agenda because he faces <unk> budget issues at the moment + harris <unk> executive vice president of customer satisfaction was named executive vice president finance and administration of this maker of data storage equipment + mr. <unk> succeeds william r. <unk> jr. who will remain with the company until the end of the year to support the transition and to complete important projects + the bush administration said it is <unk> a comprehensive proposal for <unk> agricultural trade that could help break an <unk> in the current round of <unk> trade negotiations + the proposal <unk> the u.s. desire to scrap or reduce a host of <unk> subsidies on farm products + but it would allow considerable flexibility in determining how and when these goals would be achieved + the u.s. plan also would ease the transition to <unk> agriculture trade by allowing some countries to convert <unk> barriers into tariffs that together with existing tariffs then would be phased out over N years + trade representative carla hills who along with agriculture secretary <unk> <unk> unveiled the proposal said she is confident it will gain considerable support from the u.s. 's trading partners + mr. <unk> seeking to <unk> european objections to an earlier u.s. plan that called for eliminating all <unk> barriers by the year N said the new u.s. proposal would n't put farmers out of business but would only encourage them to grow what the markets desire instead of what the government wants + the u.s. is <unk> the proposal today in geneva hoping that the initiative will spur members of the general agreement on tariffs and trade to reach agreement on new trade rules before their current negotiating round concludes in december N + another u.s. proposal filed monday urges more fair play in services trade including predictable and clear rules and <unk> in the treatment of foreign and domestic service companies + unlike the earlier u.s. <unk> proposal which struck european countries as too extreme the latest plan would provide some room for maneuver + for instance the new u.s. package makes clear there would be a transition period during which gatt members could use a combination of tariffs and quotas to cushion their farmers from foreign competition + it also says countries could temporarily raise tariffs on certain products if they experience an unusually heavy volume of imports + instead of proposing a complete elimination of farm subsidies as the earlier u.s. proposal did the new package calls for the elimination of only the most <unk> ones + less <unk> ones would be subject only to some restraints and others with a relatively minor trade impact would be allowed to continue under certain conditions + the new u.s. plan also would establish procedures to prevent countries from using health and <unk> rules to <unk> trade <unk> + the goal would be to resolve disputes such as one prompted by the european community 's current attempt to bar imports of beef from <unk> u.s. cattle + the u.s. contends that the rules are n't justified on health grounds + to encourage more competition among exporting countries the u.s. is proposing that export subsidies including tax incentives for exporters be phased out in five years + procter & gamble co. helped by a gain from a lawsuit settlement and continued growth overseas posted a N N rise in fiscal first-quarter net income + net for the quarter ended sept. N climbed to $ N million or $ N a share from $ N million or $ N a share a year earlier + per-share figures have been adjusted for a 2-for-1 stock split effective oct. N + sales increased N N to $ N billion from $ N billion + earnings at the consumer-products giant were boosted by a gain of $ N million or about N cents a share stemming from last month 's settlement of litigation with three of p&g 's competitors over patents on p&g 's <unk> <unk> <unk> + excluding the gain p&g 's earnings were close to analysts ' predictions of about $ N a share for the quarter + wall street had expected a modest rise in the company 's domestic sales and earnings and more substantial increases in overseas results + one factor helping sales and earnings was a N N price rise for most p&g products except coffee analysts said + unit volume or amount of products shipped rose about N N in the international segment with p&g continuing to win market share in japan 's diaper and detergent markets + jay <unk> analyst with kidder peabody & co. said p&g 's always <unk> <unk> sold under the <unk> name in japan has firmly established itself as a leading brand + he figures p&g will expand its <unk> product line in japan to continue that momentum + p&g 's u.s. shipments were up just N N partly because the company decided to shift more promotions and sales for health and beauty products to the fiscal second quarter + <unk> <unk> analyst with salomon bros. predicts the shift will mean p&g 's sales growth in the second quarter will be in the double <unk> + also slowing growth in the u.s. were lackluster results for p&g 's cooking oils which had a strong year-earlier first quarter + last year 's drought in the midwest prompted retailers to stock up on oils ahead of anticipated price increases boosting sales for <unk> and <unk> oils analysts said + for fiscal N analysts expect p&g 's sales to continue to grow with earnings climbing between N N and N N + <unk> hyman vice president of equity research for first boston corp. expects p&g to post net of about $ N a share on a <unk> basis + but i 'm recognizing there 's a good chance they 'll do a bit better than that she says + in fiscal N p&g earned $ N a share adjusted for the stock split + one big factor affecting the fiscal second half will be the new <unk> of edwin l. <unk> who becomes chairman and chief executive officer in january + because of his remarkable success turning around p&g 's international operations analysts have high hopes for his tenure + if he does to the domestic operations what he did internationally says mr. <unk> this company will earn $ N or $ N a share in a few years + the voting rights act of N was enacted to keep the promise of the <unk> amendment and enable southern blacks to go to the polls <unk> by <unk> tests and other <unk> devices + <unk> years later the voting rights act has been transformed by the courts and the justice department into a program of racial gerrymandering designed to increase the number of blacks and other minorities hispanics <unk> and native americans holding <unk> office + in the 1980s the justice department and lower federal courts that enforce the voting rights act have required state legislatures and municipal governments to create the maximum number of safe minority election districts districts where minorities form between N N and N N of the voting population + the program has even been called upon to create safe white electoral districts in municipalities where whites are the minority + although section N of the act <unk> <unk> requiring that minorities win a <unk> share of <unk> offices few municipal and state government plans achieve <unk> by the justice department or survive the scrutiny of the lower federal courts unless they <unk> out as many <unk> minority districts as possible + the new goal of the voting rights act more minorities in political office is <unk> + for the political process to work all citizens regardless of race must feel represented + one essential indicator that they are is that members of minority groups get elected to public office with reasonable frequency + as is blacks constitute N N of the population but fewer than N N of elected leaders + but racial gerrymandering is not the best way to accomplish that essential goal + it is a quick fix for a complex problem + far from promoting a <unk> of interests among black white hispanic and other minority voters drawing the district lines according to race suggests that race is the voter 's and the candidate 's most important <unk> + such a policy implies that only a black politician can speak for a black person and that only a white politician can govern on behalf of a white one + examples of the divisive effects of racial gerrymandering can be seen in two cities new york and birmingham <unk> + when they <unk> their districts after the N census every other <unk> and state in the country will face this issue + new york city + racial gerrymandering has been a familiar policy in new york city since N when congress first amended the voting rights act to expand its reach beyond the southern states + in N the justice department required that the electoral <unk> in the borough of brooklyn be <unk> to concentrate black and hispanic votes despite protests that the new electoral <unk> would split a neighborhood of <unk> <unk> into two different districts + this year a commission appointed by the mayor to revise new york 's system of government completed a new charter expanding the city council to N from N members + sometime in N as soon as the N census becomes available a <unk> panel will <unk> the city council district lines + the charter revision commission has made it clear that in response to the expectations of the justice department and the commission 's own commitment to <unk> minority political leadership the new district lines will be drawn to maximize the number of <unk> minority districts + blacks and hispanics currently make up N N of the city 's population and hold only N N of the seats on the council + several of the city 's black leaders including democratic mayoral <unk> david dinkins have spoken out for racial gerrymandering to accord blacks and hispanics the <unk> opportunity for representation + in this connection it is important to note that several members of new york 's sitting city council represent <unk> districts that bring together sizable black hispanic and <unk> white <unk> <unk> <unk> 's <unk> district in northern manhattan and the south bronx and susan alter 's <unk> district in brooklyn for example + to win their seats on the council these political leaders have had to listen to all the voices in their district and devise public policies that would benefit all + often they have found that the relevant issue is not race but rather housing crime prevention or education + birmingham ala. + the unusual situation in birmingham <unk> illustrates the divisive consequences of <unk> out safe districts for racial minorities + in birmingham which is N N black whites are the minority + insisting that they are protected by the voting rights act a group of whites brought a federal suit in N to demand that the city abandon <unk> voting for the nine member city council and create nine electoral districts including four safe white districts + the white group argued that whites were not fully and fairly represented because in <unk> elections only black candidates or white candidates who <unk> to black interests could win + no federal court has ruled that the voting rights act protects a white minority but in june the justice department approved a <unk> plan for birmingham that <unk> out three <unk> districts and six <unk> districts + richard <unk> birmingham 's black mayor <unk> the consequences + in the past people who had to run for office had to moderate their views because they could n't afford to <unk> blacks or whites he said + now you go to districts you 're likely to get candidates whose views are more extreme white and black on racial issues + two hundred years ago critics of the new united states constitution warned that the electoral districts for congress were too large and <unk> too many different economic interests + a small farmer and a <unk> merchant could not be represented by the same spokesman they said + but james madison <unk> that argument in one of the most <unk> political <unk> ever written no. N of the <unk> papers + madison explained that a representative 's duty was to speak not for the narrow interests of one group but instead for the common good + large <unk> election districts would encourage good government said madison because a representative would be <unk> to serve the interests of all his constituents and be <unk> to none + madison 's noble and <unk> vision of the representative still can guide us + as long as we believe that all americans of every race and ethnic background have common interests and can live together <unk> our political <unk> should reflect our belief + racial gerrymandering creating separate black and white districts says that we have discarded that belief in our ability to live together and govern ourselves as one people + ms. <unk> is a constitutional scholar at the center for the study of the presidency in new york + the justice department has distributed these new guidelines for u.s. attorneys <unk> rico cases + a related editorial appears today + under rico the government may seek a temporary <unk> order tro upon the filing of a rico indictment in order to preserve all <unk> assets until the trial is completed and judgment entered + such orders can have a <unk> impact on third parties who do business with the defendants including clients vendors banks investors creditors dependents and others + some highly publicized cases involving rico <unk> have been the subject of considerable criticism in the press because of a perception that pre-trial <unk> of assets is <unk> to a seizure of property without due process + in order to ensure that the rights of all interested parties are protected the criminal division has instituted the following requirements to control the use of <unk> in rico prosecutions + it should be noted that these requirements are in addition to any other existing requirements such as review by the asset forfeiture office + N as part of the approval process for rico prosecutions the prosecutor must submit any proposed forfeiture tro for review by the organized crime and racketeering section + the prosecutor must show that <unk> <unk> such as bonds are not likely to preserve the assets for forfeiture in the event of a conviction + N in seeking approval of a tro the prosecutor must <unk> any anticipated impact that forfeiture and the tro would have on innocent third parties balanced against the government 's need to preserve the assets + N in deciding whether forfeiture and hence a tro is appropriate the section will consider the nature and <unk> of the <unk> the government 's policy is not to seek the <unk> forfeiture permissible under the law where that forfeiture would be disproportionate to the defendant 's crime + the division expects that the prosecutor will announce these principles either at the time the indictment is returned or at the latest at the first proceeding before the court concerning the tro + sales of north <unk> cars and trucks plunged N N in mid-october from a year earlier as domestic manufacturers paid the price for heavy incentives earlier this year + people are waiting for new factory <unk> said ben <unk> sales manager of bob <unk> auto world in lynn mass. whose sales are slow + this trend appears to be especially true at general motors corp. which used both dealer and consumer incentives to <unk> sales in august and september + since then deliveries have slumped + gm 's car sales dropped N N in mid-october to N while truck sales fell N N to N + gm also had dismal results in the first N days of the month while other auto makers reported mixed results + all of the big three suffered in the <unk> period however with sales of all domestically made cars including those built at <unk> plants falling N N to N from a year earlier + the seasonal adjusted annual selling rate was six million vehicles a small improvement from the N million rate of early october but a big drop from the N million rate a year ago + sales of domestically made trucks also continued to be sluggish in mid-october dropping N N to N from a year ago + the big three auto makers already have slashed fourth-quarter production plans N N below year-ago levels but that may not be enough to prevent inventories from ballooning if sales do n't improve + industry analyst john h. <unk> a vice president with hill & <unk> in st. louis forecasts that domestic auto makers will have a <unk> supply of cars at the end of the year even if car sales improve to a N million vehicle rate for the quarter + ford motor co. reported a N N drop in sales of <unk> cars to N and a N N drop in domestic trucks to N + the sales are being dragged down by a <unk> of N vehicles said joel <unk> a ford analyst + the earlier use of incentives <unk> the market of <unk> for <unk> N cars he said + town & country ford in charlotte n.c. still needs to move about N N cars and trucks + business had been fairly strong until hurricane hugo hit the area but has been down since + chrysler corp. also hit the rocks in mid-october + the no. N u.s. auto maker had a N N plunge in car sales to N and a N N drop in truck sales to N which include its minivans and <unk> + honda motor co. which continues to have short supplies of domestically made accords saw its sales of north <unk> cars fall N N to N + but sales of domestic cars and trucks at nissan motor corp. rose N N to N + a nissan spokesman attributed the increase to the use of incentives this year and not a year ago and to higher fleet sales + toyota motor corp. which opened a plant in <unk> ky. last year saw sales triple to N vehicles + a totals include only vehicle sales reported in the period + c domestic car + d percent change greater than N N + x there were N selling days in the most recent period and N a year earlier + percentage differences based on daily sales rate rather than sales volume + short interest in nasdaq over-the-counter stocks rose N N as of mid-october its biggest jump since N N last april + the most recent otc short interest statistics were compiled oct. N the day the nasdaq composite index slid N N and the new york stock exchange tumbled N N + the <unk> might lead to the conclusion that <unk> bet heavily on that day that otc stocks would decline further + as it happens the nasdaq composite did continue to fall for two days after the initial plunge + however the short interest figures reported by brokerage and securities clearing firms to the national association of securities dealers include only those trades completed or settled by oct. N rather than trades that occurred on that day according to gene <unk> chief economist for the nasd + generally it takes five business days to transfer stock and to take the other steps necessary to settle a trade + the total short interest in nasdaq stocks as of mid-october was N million shares up from N million in september but well below the record level of N million shares established in july N + the sharp rise in otc short interest compares with the N N decline in short interest on the new york stock exchange and the N N rise on the american stock exchange during the <unk> period + generally a short seller expects a fall in a stock 's price and aims to profit by selling borrowed shares that are to be replaced later the short seller hopes the replacement shares bought later will cost less than those that were sold + short interest which represents the number of shares borrowed and sold but not yet replaced can be a <unk> barometer for many stocks + among N of the largest otc issues short interest rose to N million shares from N million in N stocks in september + big stocks with large short interest gains as of oct. N included first executive intel campeau and lin broadcasting + short interest in first executive an insurance issue rose N N to N million + intel 's short interest jumped N N while campeau 's increased N N + intel makes semiconductors and campeau operates department-store chains and is <unk> for cash + <unk> savings again had the dubious honor of being the otc stock with the biggest short interest position on nasdaq + <unk> has headed the list since may + first executive and troubled valley national corp. of arizona were next in line + short selling is n't necessarily bad for the overall market + <unk> shares must eventually be replaced through buying + in addition changes in short interest in some stocks may be caused by arbitrage + for example an investor may seek to profit during some takeover situations by buying stock in one company involved and <unk> the stock of the other + two big stocks involved in takeover activity saw their short interest surge + short interest in the american depositary receipts of jaguar the target of both ford motor and general motors more than doubled + nasdaq stocks that showed a drop in short interest included adobe systems class a shares of tele-communications and takeover targets <unk> and <unk> + the nasd which operates the nasdaq computer system on which N otc issues trade <unk> short interest data in two categories the approximately two-thirds and generally biggest nasdaq stocks that trade on the national market system and the one-third and generally smaller nasdaq stocks that are n't a part of the system + short interest in N <unk> securities totaled N million shares compared with almost N million shares in N issues in september + the october short interest represents N days of average daily trading volume in the smaller stocks in the system for the reporting period compared with N day a month ago + among bigger otc stocks the figures represent N days of average daily volume compared with N days in september + the adjacent tables show the issues in which a short interest position of at least N shares existed as of oct. N or in which there was a short position change of at least N shares since sept. N see accompanying tables wsj oct. N N + from the sept. <unk> N issue of the economist + what defeated general aoun was not only the weight of the syrian army + the weight of lebanon 's history was also against him and it is a history israel is in danger of <unk> + like lebanon and however unfairly israel is regarded by the arab world as a colonial <unk> + its best hope of acceptance by its <unk> lies in reaching a settlement with the <unk> + like lebanon israel is being <unk> by <unk> + in greater israel more than half the children under six are <unk> + within N years <unk> will probably be the minority + yet israel will neither share power with all these arabs nor says its present prime minister <unk> its borders closer to its <unk> jewish <unk> + by not choosing one of these options <unk> will condemn themselves as the <unk> did to perpetual war with the <unk> in their midst and so to the internal erosion of their state + unlike the <unk> israel 's <unk> will not let themselves become the weakest force in a system of private <unk> <unk> will become <unk> before it becomes <unk> + but that is not much of a <unk> to draw from the failure of general aoun + the nasdaq over-the-counter market did n't fully recover from a selling <unk> and closed down N N + the effects on the market of the mostly computer-driven sell-off among <unk> stocks <unk> many market makers who watched the nasdaq composite index tumble in <unk> with the dow jones industrial average and then saw it get left behind in the subsequent rally + after <unk> N N at one point during the day the composite rebounded a little but finished down N at N + in contrast the industrial average recovered almost completely from its <unk> and closed down N N + the new york stock exchange composite was N N lower for the day + as usual the over-the-counter market 's biggest technology stocks were hardest hit + microsoft battered by profit taking in recent sessions sank as much as N but it finished at N N down N N on volume of one million shares + mci communications the most active issue finished down N to N N + mci traded as low as N N during the session + other active stocks included jaguar whose american depositary receipts added N to N N + apple computer improved N to N N intel slipped N to N N and valley national corp. was up N to N N + the market started with several strikes against it said peter dapuzzo head of retail equity trading at shearson lehman hutton referring to news that the labor-management buy-out of ual corp. continued to <unk> and reports that the junk-bond market is <unk> + but the computer-guided selling in response to those developments dealt a serious blow to the over-the-counter market mr. dapuzzo said + even though the over-the-counter market usually does n't fall by as much as listed stocks during <unk> <unk> he said when the market does recover the damage is done and it leaves nasdaq down more than the big board + mr. dapuzzo also complained that the sharp swings in stock prices lately is scaring away retail and foreign investors + while shearson does n't do computer-guided program trading for its own account the firm does execute orders for clients involved in the buying and selling of shares tied to movements in certain stock indexes mr. dapuzzo acknowledged + the volatility inherent in program trading troubled other traders too + they do n't like the risks they are forced to assume when prices swing so drastically + market makers are supposed to keep supplies of stocks on hand to maintain orderly trading when imbalances occur + that means that on days when prices are tumbling and sellers <unk> they must be willing to buy shares from sellers when no one else will + in such an environment a market maker can absorb huge losses + but the recent volatility in stock prices caused by the program trading has made some market makers less willing to <unk> up the stocks that are for sale + the market makers say they are n't comfortable carrying big positions in stocks because they realize prices can tumble quickly + the situation makes it harder to buy and sell shares quickly <unk> the rise and fall in stock prices during <unk> trading + <unk> robert <unk> head of over-the-counter trading at donaldson lufkin & jenrette it 's making it tough for traders to make money + he said that when sell programs kick in many traders believe that there 's no sense in sticking your nose out because you 're an instant loser + <unk> learning centers added N to N N on N shares + <unk> group said it will make a $ <unk> offer for the remaining <unk> learning center common stock if it acquires a majority of the company 's shares in a pending rights offering by <unk> learning center 's parent <unk> inc + shares of <unk> inc. closed at N N also up N on volume of N + ohio casualty dropped N N to N N + the company posted third-quarter earnings of N cents a share down from $ N a year earlier + the company estimated that losses from hurricane hugo reduced net income by N cents a share in the most recent quarter + the company said losses from the oct. N earthquake in california have n't yet been determined but that it provides earthquake coverage to about N properties in the <unk> area + any <unk> losses will be reported in the fourth quarter the company said + north atlantic industries jumped N to N N + the <unk> maker is to be acquired by asset management associates for $ N a share + lin broadcasting slid N N to N N despite reporting third-quarter net of N cents a share up from N cents the previous year + the company said the latest quarter included about $ N million in special legal and financial advisory costs related to mccaw cellular communications ' bid for the company and lin 's merger pact with bellsouth + mccaw was unchanged at N + <unk> slid N N to N N amid continuing concerns about the company 's contract negotiations with international business machines + ibm is reviewing its entire <unk> program and <unk> confirmed earlier this month that it was in talks with the company about possible modifications to its current <unk> contract + <unk> make modifications to ibm 's computer hardware and <unk> the products + omni capital group surged N N to N N + the company said net rose to N cents a share in its <unk> quarter ended sept. N from N cents a shares a year ago + probably the most <unk> soviet violation for example is the krasnoyarsk radar + arms control reality nov. N N the first of some N journal <unk> saying that krasnoyarsk violated the abm treaty + whether the installation is for early warning or space track it clearly is not deployed the lawmakers said + thus we judge it to be not a violation of the abm treaty at this time + the delegation included a reporter from the new york times aides to sen. edward m. kennedy and rep. <unk> <unk> and natural resources defense council staff members + the washington post sept. N N + the u.s.s.r. has taken unprecedented <unk> measures of openness by giving american representatives a possibility to <unk> the building site of the krasnoyarsk radar as well as radar vans in the areas of <unk> and moscow so as to see for themselves that there are no violations of the abm treaty of N on the part of the soviet union + letter from eduard shevardnadze to u.n. <unk> <unk> de <unk> reported in tass june N N + the construction of this station equal in size to the egyptian <unk> <unk> i say it directly a clear violation of abm + eduard shevardnadze oct. N N + we 're happy we guess to receive confirmation of the krasnoyarsk violation from the soviets five years after we started writing about it + perhaps even the american <unk> will now <unk> + without question something intriguing is going on in the policy chambers of the politburo + as it bids for new agreements new loans and indeed admission to the <unk> world the soviet government has recognized it has a credibility problem + so after N years it is <unk> the obvious hoping to be believed about other things + it 's not enough + if the soviets want to be believed they need to start telling the truth about more than the totally obvious + our own test of glasnost 's <unk> would be a soviet decision to open itself to a complete international examination of one of the most troubling <unk> in u.s.-soviet relations the reported N anthrax <unk> at a soviet military facility in sverdlovsk + the u.s. government has never <unk> in its assessment of this incident as an accident at a biological weapons facility there and hence a violation of the N biological weapons convention + the pentagon 's recently issued soviet military power though in general adopting a softer line repeated the sverdlovsk assessment + it also was detailed in congressional testimony this past february an explosion at the <unk> and <unk> institute in sverdlovsk released anthrax <unk> that caused a significant number of deaths + since mr. shevardnadze did not address this topic before the supreme soviet the soviet union 's official position remains that the anthrax deaths were caused by tainted meat + we doubt this claim just as we <unk> mr. shevardnadze 's assurance last year that krasnoyarsk did n't violate the abm treaty + and just as we did not believe the <unk> claims of the congressmen and arms-control advocates who visited krasnoyarsk we are in no way persuaded by the <unk> to the <unk> theory by a u.s. team of scientists who met with soviet counterparts in washington last year + the soviets ' explanation is that the anthrax came from one lot of animal feed made from the <unk> of cattle that <unk> on soil that was naturally infected with anthrax <unk> + harvard 's <unk> <unk> who we read has sold something called the scientific community on the notion that yellow rain attacks on the <unk> <unk> were in fact the result of <unk> <unk> by giant <unk> found the soviet anthrax scenario completely <unk> + we do n't believe it + and we certainly do not believe that mr. gorbachev or any of his <unk> yet deserve to have the west take their word for it + sverdlovsk is a large gray cloud over glasnost and indeed over the legitimacy of the arms-control process itself + the u.s. government 's sverdlovsk complaint as with krasnoyarsk is no mere political <unk> + biological weapons violations have figured little in political debate and indeed have not been pressed vigorously enough by the u.s. government + but the stated u.s. position is detailed and specific and the prospect of biological <unk> is <unk> <unk> + the soviets should be willing to set in motion a process that would allow them to acknowledge that sverdlovsk violated the N agreement or alternatively that would give u.s. specialists reasonable confidence that this was a wholly civilian accident + until that happens glasnost can not begin to deserve the kind of credibility mr. shevardnadze was bidding for with his <unk> on monday + manville corp. said it offered to buy $ N million of its convertible preferred stock from the manville personal injury settlement trust in a move that would improve the trust 's liquidity and reduce the potential number of manville shares outstanding + manville said it made the offer within the past several weeks as part of an effort to improve shareholder value + it said it would purchase the stock at market price + manville and a spokeswoman for the trust said that the two are discussing the proposal but a decision has n't been made + we are considering that offer along with all other alternatives the trust spokeswoman said + we need to look at how to maximize our cash flow to pay our beneficiaries + the trust created as part of manville 's bankruptcy-law reorganization to compensate victims of <unk> diseases owns N million of the series a convertible preferred shares which are each convertible into N manville common shares + the trust also owns half of manville 's N million common shares outstanding + based on manville 's closing price yesterday of $ N a share manville 's offer would purchase about N million of its preferred shares or about N N of the trust 's preferred stock holding + in addition to the stock and N N of manville 's profits beginning in N the trust is supposed to receive $ N billion over its <unk> life + but it initially was funded with about $ N million and may soon face a cash crunch + as of june N it had settled about N of N claims filed and its unpaid claims totaled $ N million a large portion of its $ N million in cash and <unk> securities + since most of its assets are tied to manville a forest and building products concern the trust might also want to diversify its holdings + as part of its offer manville said it requested changes in some <unk> between it and the trust to allow manville to reflect a more typical corporate ownership and financial structure + a manville spokesman would n't elaborate on the proposed changes + but he said they are to a large degree <unk> although some may generate some disagreement + manville said the shares issued to the trust were intended to be sold as needed and that manville has the right of first refusal to buy those shares + northeast utilities raised its bid for public service co. of new hampshire which is operating under bankruptcy code protection to $ N billion from $ N billion + northeast 's raised bid which was supported by ps of new hampshire 's official shareholder committee is a prelude to what is expected to be a round of higher bids by the other groups trying to acquire the company the largest utility in new hampshire + the $ N billion value claimed by northeast based in hartford conn. is the highest yet given to a bid + some of the three other bidding groups are expected to increase their offers tomorrow a date set for revised offers by a bankruptcy court judge + a hearing is set for nov. N but participants do n't expect a resolution until july N + under the new northeast utilities plan it would pay $ N billion in cash to creditors and assume $ N million in pollution control bonds + secured creditors would recover both principal and interest while unsecured creditors would receive only principal and interest accrued before ps of new hampshire filed for bankruptcy code protection in january + the biggest change in northeast 's offer was in improvements made for equity holders who had been given short <unk> previously + assuming full operation of the seabrook nuclear power plant which is completed but is n't yet operating equity holders would receive up to $ N million in cash preferred stock and new 10-year seabrook bonds + northeast 's previous offer had proposed that equity holders receive just $ N million + in addition northeast promised the state of new hampshire that rate increases would be limited to N N annually for seven years + its previous proposal had <unk> rate limits on seabrook operations and other <unk> + wilbur ross financial adviser to the equity holders said given the state 's strong bargaining position we believe the <unk> plan provides the best recovery available to ps of new hampshire 's equity holders + officials of ps of new hampshire could n't be reached for comment + the company has filed an internal reorganization plan it valued at $ N billion that would require N N rate increases + that plan would leave existing preferred shareholders with at least a N N stake and give common shareholders as little as N N + new england electric system <unk> mass. has proposed buying the company for $ N billion as part of a plan that would require rate increases of only N N annually for seven years + the state of new hampshire has favored that plan + the other bidder is united illuminating co. new haven conn. with a bid valued at $ N billion and and a proposal for seven years of N N rate increases + the polish <unk> will eat well this winter + tons of <unk> <unk> potatoes <unk> and wheat will fill damp <unk> across the land as thousands of farmers turn the state 's buyers away + many a <unk> wo n't be born as a result and many a <unk> will never hang in a butcher shop + but with inflation <unk> grain in the <unk> will still be a safer bet for the private farmer than money in the bank + once again the <unk> peasant holds poland 's future in his hands + until his labor can produce a profit in this dying and distorted system even solidarity 's sympathetic new government wo n't win him over + in coming months emergency food aid moving in from the west will be the one buffer between a <unk> public and a new political <unk> + factory workers on strike knocked poland 's communist bosses off balance last year this year it was the farmers who brought them down + in june farmers held onto meat milk and grain waiting for july 's usual <unk> price rises + the communists <unk> prices instead + the farmers ran a <unk> and meat disappeared from the shops + on aug. N the state <unk> up its controls and food prices leaped + without buffer stocks inflation exploded + that was when the <unk> old peasants ' party desperate to live through the crisis broke ranks with the communists and joined with solidarity in the east bloc 's first <unk> government + but by the time solidarity took office in september the damage was done + <unk> as economists have come to call it had gone <unk> + the cost of raising a <unk> kept <unk> ahead of the return for selling one + the farmers stayed angry + they still are + at <unk> on a cool day hundreds travel to the private market in <unk> a town not far from warsaw <unk> pigs cattle and <unk> of feed that the state 's official buyers ca n't induce them to sell + here they are searching for a higher price + in a crush of trucks and horse <unk> on the <unk> field <unk> <unk> <unk> a <unk> <unk> <unk> into the <unk> of a private butcher 's polish fiat + of course it 's better to sell private he says as the butcher <unk> away + why should anybody want to sell to them + the young farmer makes money on the few <unk> he sells here + he wo n't for long because his old state sources of <unk> and potatoes are <unk> up + there 's no feed he says + you ca n't buy anything <unk> + i do n't know why + edward <unk> does + his truck is <unk> across the field in a row of grain sellers + like the others it is loaded with <unk> wheat and <unk> in <unk> labeled asbestos made in <unk> + the farmer at the next truck <unk> wheat + it 's nice + it wo n't be cheaper + we sell direct + a heavy <unk> woman runs a handful through her fingers and counts him out a pile of <unk> + country people breed pigs says mr. <unk> <unk> against the back of his truck + they ca n't buy feed from the state + there is n't enough + some state middlemen come to buy from me + i sell a little + i am waiting + i have plenty more at home + on this morning he does n't sell much in <unk> either + at closing time farmers <unk> out most of what they <unk> in + a private market like this just is n't big enough to absorb all that business + the <unk> of <unk> it seems will not quickly <unk> away + state monopolies will keep on <unk> trade free prices or not until something else <unk> them + polish agriculture will need a whole private network of procurement processing and distribution plus a new manufacturing industry to supply it with <unk> pesticides <unk> and feed + the communists spent N years working to ensure that no such <unk> structures ever arose here + building them now will require <unk> from the west and removal of political <unk> a job that solidarity has barely started + but polish agriculture does <unk> one great asset already the private farmer + we are dealing with real entrepreneurs says <unk> <unk> an economist who advises rural solidarity the union 's <unk> <unk> + there are a lot of them and they have property + polish peasants <unk> the <unk> were once a source of shame to orthodox communists + now among communist reformers they are <unk> of envy + food is the <unk> 's top priority the key to popular support + as the chinese have shown and the soviets are learning family farms <unk> where <unk> fail + ownership it seems is the best fertilizer + the poles have had it all along + poland 's N million small private farms cover N N of its <unk> land + on it a quarter of the country 's N million people produce <unk> of its grain beef eggs and milk and <unk> of its fruit <unk> and potatoes + like the roman catholic church the polish peasant is a <unk> of the nation + try as they might the communists could neither replace nor break him + and they did try + a few miles past <unk> a <unk> road narrows to a track of sand and leads into <unk> a village of <unk> farms + <unk> <unk> owns N acres in N scattered <unk> + he grows <unk> and potatoes for a few <unk> five <unk> and N <unk> + in <unk> <unk> and torn shoes he stands in his <unk> <unk> the ground with a look both <unk> and <unk> + it 's bad soil he says + until N it was good soil + then the state put in a <unk> to supply the area with drinking water + farmers lay down before the <unk> + their protest was ignored + the dam caused the water level to drop in <unk> + <unk> <unk> <unk> and his <unk> <unk> + he expected as much + in his lifetime N years the communists brought electricity to his village and <unk> in drinking water from the <unk> + no phones + no gas + we wanted them to build a road here he says + they started and then abandoned it + a <unk> his only <unk> equipment stands in front of the <unk> + it 's russian + good for nothing + parts are a tragedy + even if i had a lot of money i could n't buy what i need + the farmer can say the same for coal cement saw <unk> + in poland only N N of all investment goes toward making things farmers want in the west it is closer to N N + the few big state farms take first crack at what does get made + they use N N more fertilizer per <unk> twice the high-grade feed + yet their best <unk> is that they produce N N of polish pork + i 've heard from friends that state farms are subsidized mr. <unk> says as his wife <unk> sets some chairs out in the sun + we have one near here + there is a lot of waste + a private farmer never <unk> anything + the state quit <unk> peasants onto its subsidized farms over N years ago + but it never did let up on the pressure + until recently a farmer with no heir had to will the state his land to collect his pension + the pension 's size still depends on how much produce he sells the state + his <unk> of materials also did until the state could n't hold up its end of that bargain + yet the state alone sells seeds and machines + when supplies are short it often hands them over only in exchange for milk or grain + a private farmer in poland is free to buy and sell land hire help decide what to grow and how to grow it + he is free to invest in <unk> and to fail for lack of chicken wire + he has plenty of freedom but no choices + i 'm on my own land mr. <unk> says + i do n't have to listen to what anybody tells me to do + sometimes says his wife we 're happy about that + by <unk> the peasant the communists have <unk> poland + <unk> like <unk> exist in a desert of poor schools and few doctors + farm income is N N below the average + the young leave especially <unk> who wo n't milk <unk> by hand + some men stay their best friend a bottle of <unk> but two million acres have gone <unk> + without machines good farms ca n't get bigger + so the potato crop once N million tons is down to N million + meat consumption is at N 's level pork production at N 's milk output at N 's + if a food crisis <unk> the communists a food revolution will make solidarity + the potential is displayed along every road into warsaw row upon row of <unk> stretching out behind modern <unk> that <unk> their owners ' wealth + <unk> are abundant and full of flavor in poland the <unk> and <unk> <unk> the state monopolies long broken + grain milk and meat come next + a private challenge to the <unk> <unk> industry will take more time and money than poland can spare although a <unk> or a local dairy can spring up fast + poland makes no machinery for a plant on that scale + solidarity wants it from the west + maria <unk> one of its farm experts <unk> it on the line the world bank will be brought in to help us destroy the old system + <unk> <unk> is destroying it now + he <unk> pork + a law went on the books in january that let him smoke <unk> without breeding pigs + he <unk> in + poland is short on enterprises not enterprise + i pay a lot to the farmer and five times the state salary to my employees he says + he is in warsaw to open a shop + i hire transportation and my customers have fresh cold cuts every day + i do n't subsidize anyone + everyone around me lives well + yes my prices are high + if nobody buys i bring my prices down + that 's the rule + that 's the market + mr. <unk> is making a fortune $ N a month he says + he has bought some trendy western clothes and a green mercedes with an american flag in the window + but the <unk> machines he picked up are N years old + i do n't want expensive machines + if the situation changes i 'll get stuck with them + that 's politics + by taking power in a deal with the peasant party 's <unk> communist <unk> solidarity has spooked the rural entrepreneur + rural solidarity <unk> to no <unk> when solidarity leader <unk> <unk> accepted the peasants ' support + it <unk> again in september when prime minister <unk> <unk> <unk> named a peasant party man as his agriculture minister + both the peasants and rural solidarity are forming new political parties for farmers + the peasants can make a credible case against solidarity that <unk> reform will drive millions from the land + next spring the two will battle in local elections + but until then and probably long afterward the communists ' <unk> of <unk> from the head of the dairy <unk> to the village bank manager will stay planted in the polish <unk> + we know how to get from capitalism to socialism <unk> <unk> is saying one afternoon + we do n't know how to get from socialism to capitalism + he farms N acres in <unk> two miles from the soviet border in one of poland 's poorest places + now he is mounting the steps of a <unk> building in a nearby village on a visit to the communist administrator the naczelnik + many people in poland hope this government will break down says mr. <unk> who belongs to the local council and to rural solidarity + that 's what the naczelnik counts on + he is our most dangerous enemy + every time he sees me he gets very nervous + the farmer <unk> into the naczelnik 's office + a thin man in a gray suit looks up from a newspaper + mr. <unk> sits + <unk> <unk> 's leg begins <unk> beneath his desk + solidarity does n't care for the good of this region he says after a few <unk> + they want to turn everything upside down in a week + mr. <unk> here wants N acres used at the moment by a state farm + he ca n't guarantee that he can use it any better + i am ready at any moment to compete with a state farm + the naczelnik <unk> his eyes + what have you got + not even a <unk> + and you want to make <unk> baskets too + i can do five things at once to be a businessman + big business mr. <unk> <unk> in english + the farmer stands to go + the naczelnik stands too + i care very much for this post he says + eight years i 've had it + a cultural center has been built shops + suddenly i am not a comfortable man for solidarity + i have accomplished too much + they want to do more + i wish them all the best + the farmer leaves + and the naczelnik <unk> his door + the house approved a short-term spending bill to keep the government operating through nov. N and provide $ N billion in emergency funds to assist in the recovery from hurricane hugo and the california earthquake + the N roll call vote reflected broad support for the disaster assistance but the cost to the treasury is sure to <unk> budget pressures this year and next under the gramm-rudman deficit reduction law + by a <unk> N margin the chamber rejected an effort to waive gramm-rudman for purposes of addressing the two disasters and budget analysts estimate the increased appropriations will widen the fiscal N deficit by at least $ N billion unless offsetting spending cuts or new revenues are found by congress + the budget impact will be greater still in fiscal N and the issue forced a confrontation between the appropriations committee leadership and budget committee chairman leon <unk> whose california district was at the center of the earthquake last week + going to the well of the chamber mr. <unk> demanded the costs be fully counted + his prominent role put him in the <unk> position of challenging the very committee members on whom his state will be most dependent in the months ahead + we do not come to this house asking for any <unk> said the california democrat + we do not intend to hide these costs from the american people + the $ N billion package <unk> $ N million for <unk> disaster loans $ N billion in highway construction funds and $ N billion divided between general emergency assistance and a reserve to be available to president bush to meet unanticipated costs from the two disasters + the funds are in addition to $ N billion appropriated last month to assist in the recovery from hugo bringing the total for the two disasters to nearly $ N billion in unanticipated spending + because of the <unk> of gramm-rudman the immediate impact is relatively small + but the appropriations set in motion spending that adds to an already grim budget picture for fiscal N + within the appropriations process the situation is even more difficult since the costs will be counted against the share of funds to be allocated to those <unk> that recently have had the greatest difficulty in staying within the budget + the underlying bill approved yesterday is required to keep the government operating past midnight tonight and this urgency has contributed to the speed and critics say mistakes that have accompanied the package of disaster assistance + the hastily drafted measure could hurt california by requiring it to put up more matching funds for emergency highway assistance than otherwise would be required + and the state 's delegation is fearful that the new funding will be counted against a separate $ N million in federal highway funds it would expect to receive under its normal allocation this year + also the high price of san francisco real estate puts the state at odds with federal regulations more <unk> to the national average + for example disaster loans which will go to small businesses and homeowners offer credit as low as N N in some cases + but the san francisco delegation finds itself asking that the cap per household be lifted to $ N from $ N to assist the hard hit but often wealthy marina district + the senate is expected to make some modifications today but both the white house and congress appear most anxious to speed final approval before tonight 's deadline + administration pressure <unk> any effort to add to total funding and the senate changes are expected to be largely technical dealing with highway aid and lifting the ceiling on total small business administration loans to $ N billion to accommodate the increased activity expected + yesterday 's floor action came as a house-senate conference approved a nearly $ N billion fiscal N military construction bill representing a N N reduction from last year and making severe cuts from pentagon requests for installations abroad + an estimated $ N million is allocated to continue work in <unk> + but all funding is cut for the philippines and projects in south korea are cut to $ N million or less than a sixth of the administration 's request + closer to home the negotiators were more generous + an estimated $ N million was set aside for military installations in the home state of north carolina rep. <unk> <unk> the house chairman + and $ N million would go to projects in tennessee represented by his senate counterpart and fellow democrat sen. james <unk> + texas and california are traditionally powerful within the conference but equally striking is the dominance of alaska pennsylvania and west virginia because of their power elsewhere in the appropriations process + senate appropriations committee chairman robert byrd d. <unk> even added report language listing $ N million in projects he wants in the budget next year + no individual illustrated this mix of power more yesterday than sen. daniel inouye d. hawaii who chairs the senate defense subcommittee + in the final trading the house was <unk> on setting aside $ N million to carry out base closings ordered to begin in fiscal N + but it gave ground to mr. inouye on a number of projects ranging from a $ N million parking garage here to a land transfer in hawaii to a provision to assist the <unk> indian tribe in washington state + the tribe is one of the poorest in the pacific northwest + mr. inouye who chairs the select committee on indian affairs used his power to move $ N from the air force to the bureau of indian affairs to assist in <unk> a <unk> base to accommodate a drug and alcohol rehabilitation center + meanwhile house-senate negotiators have tentatively agreed on a $ N billion anti-drug and <unk> <unk> cutting other federal spending N N to pay for it + a formal house-senate conference is expected to <unk> the accord later this week + mobil corp. is preparing to slash the size of its work force in the u.s. possibly as soon as next month say individuals familiar with the company 's strategy + the size of the cuts is n't known but they 'll be centered in the exploration and production division which is responsible for <unk> oil reserves drilling wells and pumping crude oil and natural gas + employees have n't yet been notified + sources said that meetings to discuss the staff reductions have been scheduled for friday at mobil offices in new orleans and denver + this would be a second round of cuts by mobil which along with other oil producers and refiners reduced its work force by N N to N N during the mid-1980s as part of an industrywide <unk> + mobil 's latest move could signal the beginning of further reductions by other oil companies in their domestic <unk> operations + in yesterday 's third-quarter earnings report the company <unk> to a $ N million provision for restructuring costs involving u.s. exploration and production operations + the report says that the restructuring will take place over a two-year period and will <unk> involve the transfer and termination of employees in our u.s. operations + a company spokesman reached at his home last night would only say that there will be a public announcement of the reduction program by the end of the week + most oil companies including mobil have been reporting lower third-quarter earnings largely as a result of lower earnings from chemicals as well as refining and marketing businesses + individuals familiar with mobil 's strategy say that mobil is reducing its u.s. work force because of declining u.s. output + yesterday mobil said domestic exploration and production operations had a $ N million loss in the third quarter while comparable foreign operations earned $ N million + industrywide oil production in this country fell by N barrels a day to N million barrels in the first eight months of this year + daily output is expected to decline by at least another N barrels next year + some mobil executives were <unk> that a reference to the cutbacks was included in the earnings report before workers were notified + one mobil executive said that the $ N million charge related to the action indicates a substantial number of people will be involved + some will likely be offered severance packages while others will be transferred to overseas operations + the justice department is in the process of trying to gain control over a law that federal judge david <unk> recently called a monster + <unk> to say he was talking about rico + with its recently revised guidelines for rico justice makes it clear that the law currently holds too many incentives for abuse by prosecutors + the text of the new policy guidelines from the criminal division are <unk> nearby + they strongly suggest that justice 's prosecutions of drexel burnham lambert michael <unk> and <unk> violated <unk> of fundamental fairness + justice is attempting to avoid a <unk> of these tactics + this amounts to an extraordinary <unk> of the tenure of new york mayoral candidate and former u.s. attorney rudolph giuliani who was more inclined to gathering <unk> than understanding markets + the new guidelines limit the pretrial <unk> of assets of <unk> defendants and their investors clients bankers and others + this follows earlier new guidelines from the tax division <unk> <unk> tax cases from <unk> as rico cases + the forfeiture memo cited considerable criticism in the press because of a perception that pre-trial <unk> of assets is <unk> to a seizure of property without due process + it told prosecutors not to seek <unk> if there are less <unk> alternatives such as bonds and in any case not to seek <unk> disproportionate to the defendant 's crime + these changes come a <unk> late for <unk> the first <unk> securities firm + it was forced into liquidation before trial when investors <unk> their funds after the government demanded a huge pre-trial asset forfeiture + <unk> investors including <unk> & co. and the harvard <unk> made the rational decision to withdraw their money for the firm the liquidation was sentence first verdict later + prosecutors wanted $ N million in forfeiture for alleged tax fraud of some $ N + the experience of <unk> and <unk> of other <unk> cases against legitimate businesses taught drexel that a <unk> investment bank would be an <unk> bank + drexel therefore agreed instead to an arrangement allowing it to plea to charges which the company is not in a position to dispute because of rico + part of drexel 's plea was to cut mr. <unk> loose + so after all the prosecutorial <unk> no one has established what if anything drexel did wrong + so two <unk> for the new rules + justice has finally recognized its employees ' abuses thanks largely to the demands for reform by former u.s. attorney in washington joseph <unk> who wants to salvage rico for real criminals + but prosecutorial guidelines are effective only if someone at justice is willing and able to <unk> <unk> prosecutors + judge <unk> of the appeals court in washington made this point at a <unk> institute conference last week in a remarkable speech titled rico the monster that <unk> <unk> + he said <unk> is supposed to be a government of laws not of men and yet rico defenders tell us that we should rely on prosecutorial discretion to protect against <unk> of rico + no prosecutorial guidelines observed or <unk> limit civil rico cases by plaintiffs for damages + what now for <unk> officials drexel and mr. <unk> + justice should review these cases to see what other prosecutorial abuses may have occurred + we suspect that justice will some day agree that only the complete repeal of rico can guarantee an end to <unk> in its name + the famous teddy z which cbs inc. had hoped would emerge as one of the few bright spots in its otherwise lackluster prime-time schedule is n't turning out to be the hit the network <unk> + although the half-hour situation comedy seen <unk> at N p.m eastern and pacific time is n't a candidate for cancellation it is slated for <unk> and by next week the network may announce teddy z is moving to N p.m. from its N time <unk> replacing the people next door which became the first network show to be canceled this season + teddy z which centers on a <unk> <unk> agent at a hollywood talent agency was scheduled in the <unk> N p.m. <unk> to follow murphy brown a situation comedy about a television news magazine <unk> <unk> <unk> + teddy z was boosted by favorable reviews and a <unk> promotional <unk> contest with k mart corp + it was <unk> on cable services including <unk> <unk> at night and <unk> and <unk> as the no. <unk> show for the week + but five weeks after the premiere the series has <unk> + in figures released yesterday by a.c. nielsen co teddy z produced by the television unit of columbia pictures entertainment inc. was in <unk> place + worse every week it <unk> audience <unk> from murphy brown and <unk> on cbs picks up again once teddy z is over and is followed by designing women + there is strong indication that teddy z is not compatible with the shows it is surrounding said john <unk> senior vice president at j. walter thompson co. a unit of wpp group plc + last week murphy brown was viewed by N N of the available television households while the number dropped to N N for teddy z and rose to N N for designing women + cbs executives said the program is also slated to <unk> some plot changes + <unk> <unk> wilson for example included the lead character 's <unk> family in the cast but that is not the right focus anymore said one cbs executive + instead cbs hopes the show will increasingly highlight the talent agency and the business of being an agent + we 're making adjustments on the show yes but nothing radical said craig nelson the story consultant on teddy z + but we hope to keep a balance between the office and the family + the opening credits are being <unk> mr. nelson said to make teddy 's situation clear to viewers who have not been with us since the beginning + those viewers find the show confusing + the stock market 's woes spooked currency traders but prompted a quiet little party among bond investors + prices of long-term treasury bonds moved <unk> to the stock market as investors sought safety amid growing evidence the economy is weakening + but the shaky economic outlook and the volatile stock market forced the dollar lower against major currencies + the bond market got an early boost from the <unk> sell-off in stocks + that rout was triggered by ual corp. 's announcement late monday that the proposed <unk> buy-out had collapsed + the <unk> decline in the dow jones industrial average during the morning trading session touched off a flight to safety that saw investors shifting assets from stocks to treasury bonds + at its strongest the treasury 's benchmark 30-year bond rose more than a point or more than $ N for each $ N face amount + as the stock market recovered some of its losses later in the day bond prices retreated + but analysts said the combination of a second consecutive decline in monthly <unk> orders and lackluster mid-october auto sales helped <unk> up the treasury market + a slowing economy and the implication of lower inflation and interest rates tend to bolster bond prices + on the surface the decline in september durable goods only N N did n't appear very weak + but orders for <unk> capital goods a <unk> of future plant and equipment spending were off N N after falling N N in august + auto makers reported that mid-october sales were running at an annual rate of about N million units far less than the N million units analysts had expected + taken together the <unk> and <unk> reports confirmed perceptions that the economy is <unk> down + although analysts do n't expect the federal reserve to ease credit policy soon reports like those yesterday help build the case for lower rates + now bond investors are looking toward next week 's report from national purchasing managers and the government 's october employment report as potentially prompting the fed to lower rates + the stock market 's <unk> drop frightened foreign investors who quickly bid the dollar lower + but as stock prices recovered some of the early losses so did the u.s. currency + although dealers said investors are becoming more bearish toward the dollar in the wake of the stock market 's recent troubles and as the u.s. economy <unk> the dollar ended down only modestly + in major market activity bond prices rose + the treasury 's benchmark 30-year bond gained nearly half a point or about $ N for each $ N face amount + the yield on the issue slipped to N N + the dollar retreated + in late new york trading the currency was quoted at N marks and N yen compared with N marks and N yen monday + <unk> of the rich and famous may be visiting some new <unk> in the near future + judge robert maximum bob <unk> sentenced jim bakker to N years in the big house yesterday while a beverly hills judge <unk> away <unk> <unk> <unk> for three days plus N hours of work with homeless women + miss <unk> <unk> her <unk> fear of <unk> <unk> + mr. bakker said he was guilty of <unk> but not fraud + we can only wonder who will be the next lost soul chosen to be america 's celebrity <unk> + boeing co. said trans european airways ordered a dozen N <unk> valued at a total of about $ N million + the N and N series aircraft will be <unk> by engines jointly produced by general electric co. and <unk> of france + currently boeing has a backlog of about $ N billion but production has been slowed by a strike of N machinists which entered its <unk> day today + last week a mediator failed to <unk> talks between the company and the <unk> who have rejected a pay raise offer of N N over three years + when the good <unk> assigned to <unk> <unk> over the <unk> of <unk> <unk> many years ago in <unk> she <unk> her with high e <unk> <unk> <unk> clean <unk> and <unk> <unk> <unk> as magic dust + maybe she could drop by at the metropolitan opera and bring along what she <unk> a little <unk> a few <unk> of <unk> skills and a nice <unk> + cast as violetta <unk> in a new production of <unk> 's la <unk> ms. <unk> last week did many things <unk> and others not so well + it is n't every day that we hear a violetta who can <unk> the first act 's <unk> music with all the little notes perfectly pitched and neatly <unk> together + never once did she <unk> for air or <unk> her <unk> + she was as cool as a <unk> + but as you may know things are not going well for violetta + there are times when she must show a little <unk> + she has <unk> after all and a <unk> <unk> and though a successful <unk> she is just about <unk> at the bank + worse her walls move all the time at least in this production + just when ms. <unk> sat down away from her guests to cough in private her salon began sliding around the stage her country <unk> also has a very active set of <unk> + hold on to those funny <unk> you wanted to caution her as the sets started to roll around once more + this is the most moving <unk> i 've ever seen + normally violetta can go about her business without wondering whether she is moving as <unk> as the <unk> + but this is a production designed and directed by franco <unk> and paid for by <unk> <unk> who has no need to count her pennies unlike violetta down to N louis at the opera 's end + seeing all those millions in action i was just so relieved that ms. <unk> <unk> thing that she is did n't <unk> <unk> herself in a <unk> + large and <unk> <unk> is another addition to the met 's growing stock of <unk> productions mostly by mr. <unk> + they have a life of their own and can be counted on to look good and perform whenever a cast is n't up to either + if a strike ever hits the met the company can still sell tickets to his <unk> and <unk> and boom out <unk> of another era + last week 's <unk> audience gave a bigger hand to a greenhouse than to the <unk> neil <unk> who sang an <unk> inside it + <unk> <unk> as a <unk> student <unk> around on <unk> mr. <unk> hardly seemed the fellow to catch a fancy <unk> 's eye + i wish he could wear <unk> in his voice + not nearly in his best form the <unk> made <unk> sounds along with his usual <unk> hand gestures + maybe mr. <unk> was too busy <unk> his set to work with his naturally <unk> <unk> + or is it that mr. <unk> is getting a little tired of <unk> + this is the same production already seen in paris and <unk> and its <unk> ideas echo the movie he made with <unk> <unk> and <unk> <unk> + decades earlier maria <unk> sang the dallas staging that introduced the <unk> idea + in an <unk> that drives <unk> <unk> <unk> violetta lies dying in bed during the prelude rising <unk> when then she <unk> the great parties she used to throw + the entire opera is her dream + given the prelude 's <unk> connections with the music preceding the last act the idea is more <unk> than bad though as luck would have it for a change there actually was a <unk> in the pit whom we wanted to hear carlos <unk> trying to make <unk> music while we all waited for the bed <unk> to stir into song + once she did so the <unk> german <unk> with the shaky nerves who so often <unk> offered a <unk> flowing performance that in its <unk> and <unk> approach was totally at odds with the staging + of <unk> moments there were nearly none and whether this has to do with mr. <unk> or the wooden cast is hard to say + in any event ms. <unk> barely <unk> violetta 's <unk> in her long meeting with <unk> <unk> who as <unk> seemed fairly desperate trying to <unk> an <unk> <unk> into his heavy <unk> <unk> + di <unk> was n't much of an <unk> for <unk> southern france + perhaps mr. <unk> could let him substitute one of the <unk> about dead children and dark nights from <unk> 's <unk> + speaking of dark nights the met 's <unk> neighbor the new york city opera has canceled its season after failing to reach a settlement with its musicians who wanted pay parity with the the chicago <unk> and san francisco opera <unk> + well they can now go and <unk> there + good luck + common sense suggests that people who play for a company that charges about half what those houses do for a ticket are not in the same market + the cancellation <unk> poorly for a company already <unk> with an identity crisis <unk> by the retirement of general director beverly <unk> and the amazing appointment of christopher <unk> as her successor after his years of <unk> <unk> in the pit + as the met discovered years ago following a <unk> december opening it is nearly impossible to <unk> subscribers once they have had time to <unk> their entertainment choices + i for instance was perfectly happy at avery fisher hall the other day listening to <unk> <unk> conduct the <unk> per <unk> a strange piece written by N different italian <unk> to honor <unk> after his death in N + each of them contributed a section at the <unk> of <unk> who was nearly driven to his own early grave by the troublesome arrangements + for all that the piece landed <unk> in a dusty <unk> after bologna refused to supply a chorus and <unk> + we know <unk> 's own contribution was mighty impressive since the <unk> <unk> me was <unk> for the <unk> <unk> of which he wrote every note himself having learned his lesson + the surprising discovery of the evening at fisher was the high standard achieved by some of his <unk> colleagues notably <unk> <unk> + his <unk> <unk> was smoothly sung by bass brian matthews + also <unk> <unk> 's <unk> <unk> was <unk> scored and <unk> put across by mr. <unk> + he brought along his <unk> <unk> <unk> chorus and even better the <unk> <unk> <unk> <unk> + she was in her most <unk> <unk> voice + maybe she could step across the plaza to the met where she has still to make her debut and help out her <unk> <unk> by <unk> the slow parts of <unk> + the tokyo international film festival was no match for the <unk> film festival in terms of prestige but it made its mark it awarded the largest cash prize of any film festival to young and first-time film makers + at this year 's event the third since the festival got under way in N <unk> <unk> of <unk> <unk> won the <unk> gold prize of $ N for <unk> old woman + by comparison <unk> now gives $ N to the winner of its young director 's award + says director george miller mad max i think the tokyo festival may become known as a major attraction for young directors because of the money as well as the recognition + there are <unk> + vincent <unk> a <unk> for the french magazine <unk> says of the recently ended tokyo festival no one makes deals and most of the films have been seen before at other <unk> + belgium decided that investors who demand the delivery of their securities when they buy shares or domestic bonds will have to pay an additional N belgian francs about $ N for each transaction bringing the total fee to N francs + while no figures exist it is thought that many small investors in belgium store securities privately in some cases to avoid paying high <unk> taxes + the law could <unk> to the advantage of brokers and banks who incur high administrative costs to deliver securities to investors + japan is considering giving aid to hungary and poland to support their recent political reforms a spokesman for the foreign ministry said + this is the first time if we decide to do so for japan to extend aid of this kind to eastern european countries the spokesman said + he said prime minister <unk> <unk> also is studying the possibility of a visit to the two eastern bloc nations and to western europe next january + drugs were a major issue in two days of talks between french president <unk> mitterrand and spanish prime minister <unk> gonzalez + i demand the <unk> <unk> in the fight against drug traffickers president mitterrand said after the meeting in <unk> spain + he added banks must open their books + the leaders ' talks <unk> with a meeting in madrid of anti-drug experts from the u.s. france italy spain peru <unk> and colombia + that conference which began yesterday was expected to cover such matters as police training and <unk> agreements spanish officials said + three soviet government officials the ministers of <unk> of foreign economic relations and of <unk> building will visit <unk> next month for talks iran 's official news agency reported + under an agreement signed last june the soviets will help iran in oil exploration and other areas in return for exports of iranian natural gas + and in paris <unk> <unk> iran 's vice minister of foreign affairs began a <unk> visit to discuss such matters as compensation to french enterprises for contracts broken by the <unk> regime + <unk> co. a japanese <unk> maker has developed a toilet that can check the user 's health + a <unk> spokesman said the toilet not only tests blood pressure <unk> and <unk> it also stores the data for up to N days + nippon telegraph & telephone corp. and <unk> <unk> electronics are involved with <unk> 's new product which will go on the market in about two years time + it will be very expensive the spokesman warned + the price can not be less than $ N + since mexican president carlos salinas de <unk> took office last december special agents have arrested more than N federal employees on charges ranging from <unk> to tax evasion + <unk> <unk> <unk> chief prosecutor at the attorney general 's office said that an estimated $ N million in government property and unpaid taxes have been recovered in the campaign to root out official corruption + mr. <unk> 's office will reportedly issue warrants during the next six months for the arrest of another N federal employees + those employees are suspected of illegally gaining an estimated $ N million the prosecutor was quoted as saying by the <unk> news service + he added that federal agents hope to recover at least half that amount + the rest will probably not be <unk> either because the statute of limitations expired or because many prefer to spend additional time in jail rather than return the money the prosecutor said + the united nations which is distributing farm tools to returning refugees in namibia is <unk> a plan to hand out <unk> because of the <unk> political climate during <unk> for independence from south africa + the decision to distribute <unk> at this time which could be used as weapons is under review said a u.n. spokesman + sources close to the family of <unk> prime minister <unk> <unk> said she is expecting a second child probably early next year + cray research inc. forecast that N will be a <unk> year for its supercomputer line + in what has become a series of <unk> announcements the world 's largest maker of <unk> said that after reviewing its order prospects we have concluded it is prudent to plan for next year on the assumption that revenue again will be flat + cray jolted the market in july when it slashed revenue and earnings projections for this year citing a slowing economy that has delayed orders from government as well as commercial customers + the company made its N projection an unusual event for cray in announcing improved net income for the third quarter + cray said it earned $ N million or $ N a share up N N from $ N million or N cents a share a year ago + revenue gained N N to $ N million from $ N million + for the nine months earnings totaled $ N million or $ N a share down N N from $ N million or $ N a share a year earlier + revenue was $ N million a N N gain from $ N million + cray made its announcement after the stock market closed + in new york stock exchange composite trading yesterday cray closed down $ N at $ N + cray said its order backlog at sept. N was $ N million down $ N million from june N + <unk> <unk> president said the company did well in the quarter as far as revenues and earnings are concerned and not quite as well in terms of signing orders + as for the current period mr. <unk> said we anticipate that fourth-quarter revenue and earnings will be substantially greater than any of the preceding three quarters but not up to the record levels of last year 's fourth quarter when cray earned $ N million or $ N a share + he added that the company expects strong operating profit for the year but at a level significantly lower than last year + he said N 's net income could be N N to N N of revenue which assuming current expectations would be N N to N N below N 's level + last year cray earned $ N million or $ N a share on revenue of $ N million + next year looks dismal said analyst paul <unk> of robert <unk> & co. milwaukee + noting that cray does n't have a <unk> supercomputer to compete with the likes of convex computer corp. and international business machines corp. mr. <unk> said such a machine would be necessary to get things back on line here + cray has indicated it will decide on whether to build such a machine before year end + johnson & johnson reported a N N rise in third-quarter net income on a N N sales increase results that were driven particularly by new products including pharmaceuticals and the company 's professional operations + net for the new <unk> n.j. maker of health-care products climbed to $ N million or N cents a share from $ N million or N cents a share in the year-earlier period + sales rose to $ N billion from $ N billion + the year-ago per-share earnings are adjusted to reflect a 2-for-1 stock split last may + in a statement ralph s. larsen chairman and chief executive officer said the company was pleased with its third-quarter sales performance especially in light of the extremely competitive environment in domestic consumer markets and the negative impact of unfavorable exchange rates this quarter + david j. <unk> an industry analyst for painewebber group inc. said johnson & johnson 's results slightly exceeded his expectations for the third quarter + in new york stock exchange composite trading yesterday johnson & johnson shares fell N cents to $ N + mr. larsen noted substantial sales growth for the recently introduced <unk> disposable contact lens and <unk> a <unk> <unk> + <unk> used by dialysis patients who are <unk> and <unk> a <unk> drug did well overseas he said + despite health-care cost controls and programs to hold down inventory the professional division which makes products including <unk> and surgical <unk> equipment achieved solid growth johnson & johnson said + but domestic consumer sales slipped N N for the quarter to $ N million from $ N million + the company cited softness in the retail health and beauty aids category as well as the intense competition in the company 's <unk> protection product line + overseas sales were stronger <unk> because of a rebound in brazil where economic turmoil had hurt year-earlier results johnson & johnson said + mr. <unk> of painewebber said the company 's sales pace has been picking up largely because the effect of unfavorable exchange rates has been easing a pattern continuing this quarter + he cautioned however that a tough <unk> comparison may slow the company 's earnings growth for the current quarter + for last year 's fourth quarter the company 's tax rate was less than N N he said + while the third period contained no major surprises mr. <unk> said the results show how sensitive the <unk> can be to developments in a single country such as brazil + he also questioned whether recent gains in that country can be sustained + the following issues were recently filed with the securities and exchange commission + <unk> <unk> corp. proposed offering of liquid yield option notes via merrill lynch capital markets + columbia gas system inc. shelf offering of up to $ N million of debentures + <unk> initial offering of N common shares of which N shares are to be sold by the company and N by holders via alex brown & sons inc. and <unk> <unk> & <unk> + <unk> systems inc. proposed offering of N common shares to be sold by holders + western gas system inc. initial offering of N common shares of which N shares will be sold by the company and N by a holder via prudential-bache capital funding smith barney harris upham & co. and <unk> <unk> inc + insiders have been selling shares in dun & bradstreet corp. the huge <unk> concern + six top executives at the new york-based company sold shares in august and september + four of those insiders sold more than half their holdings + the stock in new york stock exchange composite trading yesterday closed at $ N up N cents well below the $ N to $ N a share the insiders received for their shares + much of the recent slide in dun & bradstreet 's stock came late last week after negative comments by analysts at merrill lynch & co. and goldman sachs & co + a company spokesman declined to comment and said that the officials who sold shares would n't comment + one of dun & bradstreet 's chief businesses is <unk> reports that rate the <unk> of millions of american companies + it also owns moody 's investors service which <unk> <unk> to bonds and preferred stock a.c. nielsen known for its data on <unk> patterns and <unk> publisher <unk> + last march this newspaper reported on widespread allegations that the company <unk> many customers into purchasing more <unk> services than needed + in june the company agreed to settle for $ N million several lawsuits related to its sales practices without admitting or denying the charges + an investigation by u.s. postal inspectors is continuing + among the insider sales charles <unk> the firm 's general counsel sold N shares in august representing N N of his holdings in the company + he received $ N for the shares according to insider filings with the securities and exchange commission + john c. holt an executive vice president and dun & bradstreet director sold N shares on aug. N for $ N filings show + he retains N shares + william <unk> <unk> the firm 's secretary and associate general counsel sold N shares in two separate sales in september for $ N + the shares represented N N of his dun & bradstreet holdings according to the company + the other insiders all senior or executive vice presidents sold between N and N shares representing between N N and N N of their holdings according to sec filings + dun & bradstreet 's stock price began its recent <unk> downward last wednesday when the company reported third-quarter results + net income rose to N cents a share from N cents a share the year-earlier period + but analysts focused more on the drop in revenue to $ N billion from $ N billion reflecting in part a continuing drop in sales of the controversial <unk> services + last thursday merrill lynch securities analyst peter <unk> downgraded his investment rating on the firm according to dow jones professional investors report citing a slowdown in the <unk> business + he cut his rating to a short-term hold from <unk> performer and reduced his N earnings estimate + mr. <unk> continues to rank the stock a <unk> buy + the stock slid $ N on more than four times average daily volume + the stock received another blow on friday when goldman sachs analyst eric <unk> advised that investors with short-term <unk> should avoid dun & bradstreet stock because it is unlikely to outperform the market + the stock fell N cents + insider selling is not unusual at dun & bradstreet in fact the recent pace of selling is just about average for the company according to figures compiled by <unk> a north miami fla. firm that specializes in tracking and analyzing sec insider filings + but previous sales have often been sales of shares purchased through the exercise of stock options and sold six months later as soon as allowed said robert <unk> president of <unk> + the most recent sales do n't appear to be <unk> he said + <unk> profits + michael a. miles chief executive officer of philip morris <unk> kraft general foods unit bought N shares of the company on sept. N for $ N each + the $ N purchase raised his holdings to N shares + the stock split <unk> on oct. N + mr. miles 's newly purchased shares are now worth $ N based on philip morris 's closing price of $ N up N cents in composite trading on the new york stock exchange yesterday + a spokesman for mr. miles said he bought the shares because he felt they were a good investment + the executive made his purchases shortly before being named to his current chief executive officer 's position formerly he was kraft general foods ' chief operating officer + shedding <unk> + two directors of <unk> gold inc. a <unk> wash. <unk> mining firm sold most of their holdings in the company aug. N + john j. <unk> sold N shares for $ N each leaving himself with a stake of N shares + he received $ N + peter <unk> sold N shares all of his holdings for $ N a share or $ N + gary <unk> corporate counsel for the company said the directors sold for personal financial reasons + both insiders declined to comment + on wall street merrill lynch & co. analyst daniel a. <unk> rates the stock neutral and drexel burnham lambert inc. lists it as a buy + <unk> gold has been on a lot of recommended lists as a junior growth company stepping into the big <unk> says <unk> <unk> metals analyst at <unk> & <unk> a new york investment firm + it 's a good company and growing there 's nothing that would warrant that it be sold + yesterday in composite trading on the american stock exchange <unk> closed at $ N up N cents + <unk> <unk> used to hold the <unk> belief that it was more perfect to exist than not to exist and that to exist as a matter of necessity was most perfect of all + now only god exists as a matter of <unk> necessity it is built into his nature + but since the time of <unk> we humans could at least claim a sort of natural necessity for the existence of our <unk> + are n't we after all the inevitable culmination of that <unk> <unk> called evolution + if <unk> and natural selection slowly but surely give rise to more and more advanced forms of life then it was only a matter of <unk> before <unk> beings <unk> with reason <unk> and taste <unk> onto the scene + now along comes stephen jay gould to <unk> this <unk> illusion + his credentials are excellent for the task + star <unk> at harvard author of numerous popular books on science and <unk> of the <unk> lobby mr. gould is perhaps the world 's most <unk> <unk> <unk> + yet he puts quite a twist on the old story handed down from <unk> + for him natural history is anything but a gradual predictable march from <unk> <unk> to human <unk> it is a <unk> chaotic affair in which the emergence of a <unk> <unk> was a <unk> shot + in wonderful life the burgess <unk> and the nature of history norton N pages $ N mr. gould makes his case for the <unk> <unk> of human evolution + the argument turns on the discovery in N of an amazing fossil <unk> high in the canadian <unk> called the burgess <unk> + here in an area smaller than a city block lay buried <unk> of <unk> weird creatures that had <unk> more than N million years ago creatures whose <unk> variety far exceeded what can be found in all the world 's <unk> today + such an embarrassment of <unk> was <unk> to the man who discovered the burgess <unk> one charles <unk> <unk> + the received <unk> wisdom of the day said that animals living so long ago must be simple in design limited in scope and <unk> to contemporary <unk> + <unk> the <unk> <unk> <unk> hypothetical <unk> from the burgess <unk> in such a way that they could be <unk> into familiar categories + it was not until the early 1970s that cambridge prof. harry whittington and two sharp graduate students began to publish a <unk> of the burgess <unk> + by making <unk> <unk> about how the <unk> and distorted fossil remains <unk> to <unk> structures this <unk> was able to piece together a series of <unk> <unk> quite unlike anything currently on the planet + one was so <unk> in appearance it was dubbed <unk> + would that mr. gould 's minute <unk> of these creatures was always so <unk> + a good deal of the book is boring particularly the endless <unk> to high and pop culture and the frequent jokes <unk> the text + these turns do not provide sufficient relief from sentences like most modern <unk> have six <unk> <unk> on the <unk> + interest picks up though when mr. gould gets around to discussing the meaning of the burgess <unk> for the theory of evolution + not long after the appearance of life <unk> there was an explosive proliferation in the number of animal designs seen on the earth + the vast majority of them however were wiped out by a succession of environmental <unk> that were too sudden and catastrophic for the normal rules of natural selection to operate + consequently the <unk> process was like a <unk> in which each group held a ticket unrelated to its <unk> <unk> + so much for survival of the <unk> + so much too for the notion that we humans <unk> in the <unk> struggle by <unk> big brains + our <unk> <unk> <unk> out through the <unk> impact that did in the <unk> because they were small not smart + if anyone has difficulty <unk> a world in which history went <unk> on without us mr. gould <unk> several + in one birds are the dominant <unk> in another the <unk> <unk> with little <unk> + back when the burgess <unk> were <unk> it seems human <unk> hopes hung on the survival of a little worm with a <unk> called <unk> + mr. gould finds this oddly <unk> like an <unk> of old he views our <unk> as a source of both freedom and <unk> moral responsibility + i by contrast can not help feeling that if some other <unk> from the burgess <unk> had survived instead beings at once <unk> and less <unk> than <unk> <unk> might have eventually gained <unk> dominion + but even if no <unk> life had <unk> here at all the universe is a big place and given the right conditions sympathetic to creating some form of life + surely at some other <unk> address a <unk> <unk> would have risen out of the <unk> to explain why <unk> speaking it is indeed a wonderful life + mr. holt is a columnist for the literary review in london + the justice department scrambled to play down the significance of its new guidelines concerning prosecutions under the federal racketeering law + the guidelines were distributed to u.s. attorneys last summer but were disclosed for the first time by press reports this week + they discourage prosecutors under certain circumstances from seeking court orders <unk> the assets of racketeering defendants prior to trial + but david runkel chief justice department spokesman said the guidelines are a <unk> and a <unk> far more than a new direction + use of the <unk> influenced and corrupt organizations law against white-collar defendants as opposed to alleged <unk> figures has come under attack from some defense lawyers and legal scholars + critics have complained that the law unfairly strips defendants of assets before a jury <unk> they have committed a crime and that aggressive use of the forfeiture provisions can <unk> corporate defendants or force them into unfavorable plea bargains + in the new guidelines the justice department says that in attempting to freeze disputed assets before trial the government will not seek to disrupt the normal legitimate business activities of the defendant and will not seek to take from third parties assets <unk> transferred to them + the guidelines also state the government 's policy is not to seek the <unk> forfeiture permissible under the law where that forfeiture would be disproportionate to the defendant 's crime + another provision <unk> certain limits on when prosecutors may use <unk> charges as a basis for bringing a racketeering case + mr. runkel declined to speculate on whether the guidelines would curb racketeering prosecutions against corporate defendants + the impact if there is any will be impossible to judge ahead of time because the decision whether to use racketeering charges is made in individual cases by justice department officials in washington he said + in a memorandum describing the guidelines assistant attorney general edward dennis jr. said that government efforts to freeze defendants ' assets pending racketeering prosecutions have been the subject of considerable criticism in the press + but mr. runkel said the government is n't backing off on these kinds of matters at all + california legislators searching for ways to pay for the $ N billion to $ N billion in damages from last week 's earthquake are laying the <unk> for a temporary increase in the state 's sales tax + the talk of a sales tax rise follows a <unk> from congress on the question of how much the federal government is willing to spend to aid in california 's earthquake relief efforts + the state had sought as much as $ N billion in relief but yesterday the house approved a more general <unk> measure calling for $ N billion in aid the bulk of which would go to california with an unspecified amount going to regions affected by hurricane hugo + that leaves the state roughly $ N billion to $ N billion short + a sales tax increase appears to be the fastest and <unk> to raise funds in a hurry + according to the state department of finance a <unk> increase in the state 's <unk> per dollar sales tax could raise $ N billion + <unk> brown speaker of california 's assembly said that gov. george deukmejian has agreed to schedule a special session of the legislature within two weeks + california 's so-called <unk> limit effectively prevents the state from spending new tax money and so drastically limits its options in an emergency + both mr. brown the state 's most influential legislator and gov. deukmejian favor a temporary sales tax increase should more money be needed than the state can raise from existing sources and the federal government + according to a spokesman the governor is also studying the possibility of raising state gasoline taxes + mr. brown meanwhile believes only one tax will be <unk> and it will be a <unk> sales tax increase said chuck <unk> an aide + one immediate source of money is an emergency fund set up by gov. deukmejian + the fund has about $ N billion and is set up to handle precisely the kind of emergency the state faces said tom <unk> the governor 's deputy press secretary + but the fund 's size is disputed by mr. brown 's office which estimates the fund holds from $ N million to $ N million + moreover an aide to mr. brown said gov. deukmejian has expressed a desire not to spend all the reserve on this + to push through a sales tax increase however the state will have to suspend the <unk> limit citing an emergency + and then it will be required to lower taxes by a corresponding amount during a three-year period after the temporary tax increase ends said <unk> katz assistant director of the state department of finance + a sales tax increase would require two-thirds approval in both houses of the state 's legislature + but observers expect broad support + if there 's an emergency and there are n't sufficient funds from elsewhere i think the attitude will be supportive said kirk west president of the california chamber of commerce + but others think property owners ought to pay a higher portion of the state 's earthquake relief <unk> + since the late 1970s california property owners have benefited from a tax <unk> as a result of a state ballot initiative known as proposition N + the state could also increase gasoline taxes every one penny increase in the tax would yield $ N million a month + but gov. deukmejian and others are reluctant to do anything to harm the state 's chances of sharply raising gasoline taxes on a permanent basis + to raise more highway funds a measure to double the state 's <unk> a <unk> tax over five years is set to appear on the state 's june election ballot + but some fear imposing a temporary gasoline tax increase in the meantime could undercut support among voters for the measure + not everyone is convinced the state must raise new revenue to meet its earthquake needs + it 's possible though not probable that the state could get by with its existing resources and federal help said <unk> <unk> chairman of the state senate 's transportation committee + separately two men injured in last week 's <unk> freeway collapse in oakland began a legal battle against the state over whether officials adequately <unk> warnings about the structure 's safety + the claims which were filed with the state board of control but will probably end up in court are the first arising out of the collapse of the so-called cypress structure <unk> + the men can defeat <unk> that states often <unk> in court by showing that officials knew or should have known that design of the structure was defective and that they failed to make reasonable changes + a board of control spokesman said the board had not seen the claim and declined to comment + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + exxon capital corp. $ N million of N N N notes due nov. N N priced at N to yield N N + the notes which are noncallable were priced at a spread of N basis points above the treasury 's 10-year note + rated triple-a by both moody 's investors service inc. and standard & poor 's corp. the issue will be sold through salomon brothers inc + citicorp $ N million of N N N notes due nov. N N priced at N to yield N N + the noncallable issue was priced at a spread of N basis points above the treasury 's seven-year note + rated single-a-1 by moody 's and double-a by s&p the issue will be sold through salomon brothers + <unk> 's <unk> inc. $ N million of N N N subordinated notes due nov. N N priced at N to yield N N + the noncallable issue was priced at a spread of N basis points above the treasury 's 10-year note + rated single-a-3 by moody 's and <unk> by s&p the issue will be sold through underwriters led by morgan stanley & co + xerox corp. $ N million of N N N notes due nov. N N priced at N to yield N N + the noncallable issue was priced to yield N basis points above the treasury 's <unk> note + rated single-a-2 by moody 's and <unk> by s&p the issue will be sold through underwriters led by salomon brothers + american general finance corp. $ N million of N N notes due oct. N N through bear stearns & co. being offered at a price of N to yield N N + the noncallable issue which has a one-time put oct. N N was priced at a spread of N basis points above the treasury 's 10-year note + the issue is rated single-a-1 by moody 's and <unk> by s&p + baltimore gas & electric co. $ N million of first and refunding mortgage bonds due oct. N N through shearson lehman hutton inc. offered at par to yield N N + the noncallable issue is rated <unk> by moody 's and <unk> by s&p + it was priced at a spread of N basis points above the treasury 's 10-year note + massachusetts $ N million of general obligation bonds consolidated loan of N series d due N through a goldman sachs & co. group + the insured bonds rated triple-a by moody 's and s&p were priced to yield from N N in N to N N in N + <unk> county school district fla. $ N million of school district general obligation bonds series N due N and N tentatively priced by a first boston corp. group to yield from N N in N to N N in N + there are $ N million of N N N term bonds due N priced to yield N N + serial bonds are priced to yield to N N in N + the bonds are rated single-a-1 by moody 's and <unk> by s&p + <unk> city redevelopment financing authority calif. $ N million of revenue bonds series N tentatively priced by a stone & <unk> group + the issue includes $ N million of insured senior <unk> bonds + these consist of current interest bonds due N N and N and capital appreciation bonds due N and N tentatively priced to yield from N N in N to N N in N + bonds due N N and N are n't being formally reoffered + there are also $ N million of uninsured subordinate <unk> bonds due dec. N N and dec. N N + there are $ N of N N N bonds priced at par and due N and $ N of N N bonds priced at par and due N + the insured bonds are rated triple-a by moody 's and s&p + the uninsured subordinate <unk> bonds are n't rated according to the lead underwriter + west virginia <unk> economic development and tourism authority $ N million of parkway revenue bonds series N with current interest bonds due N and N and capital appreciation bonds due N tentatively priced by a painewebber inc. group to yield from N N in N to N N in N + there are $ N of N N N bonds priced at N N to yield N N in N + current interest serial bonds are tentatively priced to yield to N N in N + capital appreciation bonds are priced to yield to maturity from N N in N to N N in N and N + the bonds are insured and rated triple-a by moody 's and s&p + connecticut housing finance authority $ N million of housing mortgage revenue bonds priced by a painewebber inc. group + the $ N million of series b bonds which are n't subject to the alternative minimum tax were priced at par to yield from N N in N to N N in N + meanwhile the $ N million of series c bonds which are <unk> to the alternative minimum tax were priced at par to yield from N N in N to N N to N + the issue is expected to receive a double-a rating from moody 's the underwriter said + an s&p rating of <unk> has already been confirmed + montgomery county md. $ N million of general obligation series b consolidated public improvement bonds of N through a manufacturers hanover trust co. group + the bonds rated triple-a by moody 's and s&p were priced to yield from N N in N to N N in N to N + federal home loan mortgage corp. $ N million of remic mortgage securities being offered by prudential-bache capital funding inc + there were no details available on the pricing of the issue freddie mac 's series N + the issue is backed by freddie mac N N N securities + <unk> co japan two-part $ N million issue of bonds due nov. N N with equity-purchase warrants indicating a N N N coupon at par + european portion of $ N million via yamaichi international europe ltd + asian portion of $ N million via <unk> securities europe ltd + each $ N bond carries one warrant exercisable from nov. N N through oct. N N to buy shares at an expected premium of N N N to the closing share price when terms are fixed oct. N + japan storage battery co. $ N million of bonds due nov. N N with equity-purchase warrants indicating a N N N coupon at par via nikko securities co europe ltd + guaranteed by mitsubishi bank ltd + each $ N bond carries one warrant exercisable from nov. N N through oct. N N to buy shares at an expected premium of N N N to the closing share price when terms are fixed nov. N + <unk> inc japan $ N million of bonds due nov. N N with equity-purchase warrants indicating a N N N coupon at par via nomura international + guaranteed by dai-ichi kangyo bank ltd + each $ N bond carries one warrant exercisable from nov. N N through oct. N N to buy shares at an expected premium of N N N to the closing share price when terms are fixed oct. N + nippon signal co japan N million marks of bonds with equity-purchase warrants indicating a N N N coupon due nov. N N and priced at par via commerzbank + guaranteed by fuji bank + each N mark bond carries one warrant and one certificate for four warrants exercisable from dec. N N to oct. N N to buy shares at an expected premium of N N N above the closing share price when prices are fixed oct. N + <unk> oil & fat co japan N million swiss francs of privately placed convertible notes due dec. N N with a fixed N N coupon at par via union bank of switzerland + put option on dec. N N at a fixed N to yield N N + each N swiss franc bond convertible from nov. N N to dec. N N at a N N premium over closing share price oct. N when terms are scheduled to be fixed + <unk> n.v netherlands N million swiss francs of convertible bonds due nov. N N with a fixed N N coupon at par via union bank of switzerland + each N swiss franc bond convertible from jan. N N to oct. N N + fees N N + <unk> lion ltd japan N million swiss francs of privately placed convertible notes due dec. N N with a N N coupon at par via yamaichi bank switzerland + put option on dec. N N at an indicated N N to yield N N + each N swiss franc note convertible from dec. N N to dec. N N at N N premium over the closing share price oct. N when terms are scheduled to be fixed + credit local de france N million swiss francs of N N privately placed notes due dec. N N priced at N N to yield N N via swiss bank corp + people start their own businesses for many reasons + but a chance to fill out <unk> records is rarely one of them + red tape is the <unk> of small business + ironically the person who wants to run his or her own business is probably the active <unk> sort most likely to hate meeting the rules and <unk> demands of federal state and local regulators + yet every business owner has to face the <unk> of forms and regulations and often is the only one available to tackle it + there is hope of change + last week sen. malcolm <unk> r. <unk> held hearings on a bill to strengthen an existing law designed to reduce regulatory <unk> for small businesses + a great many federal regulations are meant for larger entities and do n't really apply to small businesses says <unk> jacob a legislative aide to sen. <unk> + other lawmakers are busy trying to revive the recently <unk> <unk> reduction act which many feel benefited small enterprises + thus optimistic entrepreneurs await a promised land of less red tape just as soon as uncle sam gets around to arranging it + meanwhile they tackle the <unk> of paper and <unk> about a dream world where <unk> postal regulations and government inspectors are <unk> + to find out what red tape <unk> entrepreneurs most the journal asked a completely <unk> random sample of business owners to <unk> about the forms and regulations they would most like to get lost in the mail + some entrepreneurs say the red tape they most love to hate is red tape they would also hate to lose + they concede that much of the government <unk> that <unk> them is essential to the public good and even to their own businesses + rules that set standards for products or govern business behavior generally the best regarded form of red tape create a level playing field and keep unscrupulous competitors away says <unk> west president of <unk> international inc. a <unk> va. business that designs <unk> and other products + mr. west cites the federal communications commission and its standards for telecommunications equipment they monitor product quality and prevent junk from flooding the market + some <unk> about red tape are predictable architects complain about a host of building regulations auto leasing companies about car insurance rules + determining when handicapped access is required can be a nightmare for architects says mark <unk> president of <unk> & co. a <unk> mass. architectural firm + there is such a <unk> of federal state and local codes that building inspectors are backing away from <unk> them mr. <unk> says + taxi leasing and other companies that maintain fleets of vehicles devote substantial resources to <unk> with state insurance laws and a host of agencies + it 's very costly and <unk> says phil rosen a partner in fleet & leasing management inc. a boston <unk> company + one senior executive at his firm spends nearly N N of his time on insurance he says + other forms of red tape are more pervasive + the most onerous many entrepreneurs say is the <unk> and filing required by tax authorities + <unk> with environmental and workplace regulations runs a close second + but <unk> run the <unk> + here is the red tape that <unk> surveyed business owners the most + environmental regulations + next to medical insurance costs of compliance are the fastest-growing expense at <unk> inc. a <unk> r.i. chemical company + peter <unk> the company 's owner says spending on regulatory paper work and the people to do it mostly to comply with federal state and local environmental laws will rise almost N N this year to $ N + mr. <unk> adds that spending on environmental red tape amounts to between N N and N N of <unk> 's total operating expenses + eastern <unk> corp. a <unk> mass. maker of thin metal precision parts must report to five federal and state agencies as well as to local fire police hospital and plumbing authorities says robert <unk> president + one state environmental regulator returned a report because it was n't heavy enough it could n't have been correct mr. <unk> says + <unk> rules + employers must deposit <unk> taxes exceeding $ N within three days after payroll or pay stiff penalties and that 's a big problem for small businesses + it 's especially <unk> if you 're on the road and you 're the one responsible says eddie brown president of brown capital management inc. a baltimore <unk> firm + employee <unk> + <unk> employee <unk> on <unk> health care and other subjects costs over $ N a year for <unk> <unk> president of professional agricultural management inc. a <unk> calif. provider of business services to farmers + an employer leaves itself open to a great deal of liability if its employee <unk> do n't reflect the most recent laws he says + but the <unk> laws are usually so complicated and confusing that you need professionals to help you you ca n't do it yourself he adds + pension and <unk> rules + <unk> with these is enough to make business owners look forward to their own pension days + yearly changes in federal benefit laws force small businesses to repeatedly <unk> and <unk> existing plans + alice <unk> who runs her own public-relations concern in new york says she has had to overhaul her pension and <unk> plans three times in the past three years + it does n't increase benefits but it 's costly and <unk> ms. <unk> says + compliance added N N to N N to her accounting bill last year she says + sales tax records + advertising agencies and other service companies are exempt from city and state sales tax in most <unk> but the exemption comes at a price of <unk> records and <unk> reviews + to justify their exempt status and avoid penalties these businesses must show once a year that each and every transaction on which they did n't pay sales tax was a legitimate business expense + you need one person to just take care of sales tax says <unk> <unk> executive vice president of lee <unk> & <unk> advertising inc. new york + when the trinity <unk> theater named anne bogart its artistic director last spring the nation 's theatrical <unk> <unk> a collective <unk> + ms. bogart an <unk> <unk> of <unk> dramatic <unk> that <unk> into such <unk> <unk> as <unk> and <unk> 's south pacific is <unk> downtown + trinity rep meanwhile is one of the nation 's oldest and most respected regional theaters still <unk> an annual a christmas carol + how would this <unk> of traditional values fare in ms. bogart 's <unk> hands + she held her fire with her first production at the trinity earlier this season + it was a predictable revival of her <unk> <unk> <unk> of <unk> <unk> 's theoretical <unk> called no plays no <unk> + now with the opening of <unk> gorky 's <unk> <unk> ms. bogart has laid her cards on the table + <unk> is a hand that will test the <unk> of her audiences + for ms. bogart who initially studied and directed in germany and cites such european directors as peter stein giorgio <unk> and <unk> <unk> as influences tends to stage her productions with a <unk> <unk> whether the text demands it or not + and gorky considered the father of soviet socialist <unk> did not write plays that easily lend themselves to deliberately <unk> <unk> techniques + gorky was a loyal if occasionally <unk> <unk> writer committed to <unk> the <unk> with plain speaking rooted in a slightly sour version of <unk> <unk> + and <unk> <unk> in N as a kind of <unk> to <unk> 's cherry <unk> is a lawn party of russian <unk> engaged in an <unk> ideological fight to the finish between the <unk> and the reformers + along the way there also are lots of romantic <unk> + <unk> ms. bogart has kept gorky 's time and place intact + despite the absence of <unk> and a tendency to turn the furniture upside down the production is rich in russian <unk> voiced by <unk> folk sporting <unk> <unk> and <unk> cotton with <unk> and fishing poles <unk> + but beyond this <unk> <unk> to tradition ms. bogart and company head off in a <unk> direction that all but <unk> gorky 's <unk> drama into something <unk> to well <unk> + the director 's attempt to force some <unk> distance between her actors and their characters frequently <unk> with performances that are <unk> <unk> + not only do the actors stand outside their characters and make it clear they are at odds with them but they often literally stand on their heads + like peter <unk> ms. bogart <unk> her actors as if they were <unk> <unk> <unk> them on <unk> <unk> them off tables even hanging them from <unk> while having them perform some <unk> <unk> of <unk> + there are moments in this <unk> when the characters <unk> the vast <unk> country house which looks like a <unk> of frank lloyd wright and is designed by <unk> <unk> <unk> <unk> <unk> <unk> with the <unk> <unk> <unk> of <unk> in + talk <unk> from where it <unk> one of them says + the clash of <unk> <unk> this treatment but the <unk> and <unk> of gorky 's individual characters have <unk> in the <unk> + as for the humor that gorky 's text provides when <unk> in such broad strokes particularly by the lesser members of the <unk> it looks and sounds forced + ms. bogart does better with music than with words when she wants as she so often does want to express herself through gorky 's <unk> play + here she has the aid of her longtime associate jeff <unk> whom she appointed trinity 's <unk> musical director and whom she equipped with a <unk> new $ N sound system and recording studio + for gorky mr. <unk> provided an <unk> <unk> of <unk> and <unk> which is less a score than a separate character with a distinct point of view + like <unk> and indeed <unk> pound ms. bogart has said that her intent in such <unk> staging of the <unk> is simply an attempt to make it new + indeed during a recent <unk> audience discussion the director explained that her <unk> artistic wish was to find a way to play somewhere over the rainbow so that the song 's original beauty comes through <unk> the <unk> + the danger that ms. bogart seems to be <unk> here is one of <unk> rather than <unk> a vision so at odds with the playwright 's that the two points of view <unk> rather than <unk> each other + ms. bogart 's cast is part and parcel of the problem + ed shea and barbara <unk> never find a real reason for their love affair as the <unk> <unk> young <unk> and the <unk> humanitarian doctor maria <unk> + cynthia <unk> as the <unk> <unk> is a <unk> <unk> not the <unk> <unk> gorky intended + better to look in the corners for performances that <unk> or <unk> + <unk> <unk> in addition to <unk> one of the evening 's more impressive <unk> instruments brings an <unk> <unk> touch to her role of <unk> everybody 's favorite mom + <unk> rice plays the <unk> with so much edge as to steal her two scenes + but it is the trinity rep <unk> jonathan fried <unk> the <unk> who is the actor to watch whether he is <unk> it up while conducting the chamber musicians or <unk> his neighbor 's wife <unk> <unk> by <unk> her <unk> + ms. de <unk> writes frequently about theater + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + morgan stanley the once <unk> investment house in N helped a corporate client complete a hostile takeover + it was the start of a boom in unfriendly even <unk> mergers + on july N N international <unk> of canada advised by morgan offered $ N a share equal to $ N million for esb a philadelphia battery maker + esb said it was given only a <unk> advance warning on a take it or leave it basis from inco as the toronto company is called + esb is aware that a hostile tender offer is being made by a foreign company for all of esb 's shares said <unk> port esb 's president + hostile thus entered the <unk> <unk> + joseph flom of <unk> <unk> <unk> <unk> & flom which became a leading legal firm in merger cases said the case made takeovers respectable + esb <unk> inco and within five days esb had a white knight as united aircraft headed by harry gray a <unk> friendly acquirer of companies offered $ N a share + gray was advised by goldman sachs and merrill lynch + esb directors <unk> accepted but a <unk> bidding match <unk> + within a few days in july inco raised its bid to $ N and united matched it + on a single day inco lifted its offer to $ N and then to $ N equal to $ N million + united met the $ N but then withdrew + esb on july N accepted the inco offer and the brief battle unlike the <unk> and lengthy big takeovers of N was over + the new <unk> game became a money maker for wall street 's once <unk> <unk> houses + inco paid morgan an advisory fee of about $ N a <unk> figure by today 's measures + early this year morgan and three other investment houses each received $ N million in advisory fees from kohlberg kravis & roberts in its $ N billion friendly buy-out of rjr nabisco + homefed corp. said third-quarter net income slid N N to $ N million or $ N per fully diluted share from $ N million or $ N a fully diluted share because of increased bad assets and unexpected trouble in unloading foreclosed property + the decline surprised analysts and jolted homefed 's stock which lost N N of its value closing at $ N on the new york stock exchange down $ N + homefed had been one of the handful of large west coast thrifts that in recent quarters had <unk> interest-rate problems <unk> the industry by keeping a lid on problem assets and lending heavily into the <unk> california housing market + analysts had been projecting fully diluted earnings in the third quarter in the range of about $ N a share + however homefed 's loan <unk> and purchases plunged N N in the quarter to $ N billion from $ N billion a year earlier + meanwhile <unk> assets rose to $ N million from $ N million + some $ N million of the troubled assets is <unk> real estate a N N surge from the $ N million of <unk> property homefed held a year ago + homefed has $ N billion of assets + homefed said most of the troubled assets are apartment <unk> shopping <unk> and other commercial real estate + it said about half are in california with the rest scattered across the country + it said sales of such properties were slower than anticipated in the third quarter but it expects sales to pick up in the rest of the year + homefed said the slide in loan <unk> was more a matter of design than a sign of cooling in the california market + any such downturn in california would be grim news for west coast thrifts particularly the less healthy ones which have performed poorly even with a <unk> market + but homefed said it <unk> <unk> loan <unk> in the quarter because of uncertainty over the new capital requirements and regulations that will emerge from negotiations over <unk> the government 's massive thrift bailout bill + it said its real-estate operations earned a record $ N million more than double year-earlier real estate profit of $ N million + and analysts said they see no signs of an imminent <unk> in california real estate even with last week 's earthquake + the thrift said earnings also were <unk> in the quarter by a $ N million provision for losses associated with its previously reported plan to liquidate a real-estate franchise network + for the nine months homefed earned $ N million or $ N a fully diluted share a N N increase from year-earlier net income of $ N million or $ N a fully diluted share + yields on certificates of deposit at major banks were little changed in the latest week + the average yield on six-month cds of $ N and less slipped to N N from N N according to banxquote money markets an information service based here + on one-year cds of $ N and less the average slid to N N from N N + both issues are among the most popular with individual investors + because of <unk> in the economy rates can be expected to decline over a one-year horizon said <unk> mehl chairman of banxquote + it 's unclear how much rates can fall and how soon + changes in cd yields in the week ended tuesday were in line with <unk> up and down within a fairly narrow range for the last two months + interest rates generally began declining last spring after moving steadily upward for more than a year + the average yield on <unk> three-month cds moved up <unk> of a percentage point in the latest week to N N + long-term cds declined just a fraction + the average yield on both two-year cds and five-year cds was N N + only cds sold by major brokerage firms posted significant increases in average yields in the latest week reflecting increased yields on treasury bills sold at monday 's auction + the average yield on six-month <unk> cds rose to N N from N N and on one-year cds the average yield rose to N N from N N + the brokerage firms which negotiate rates with the banks and thrifts whose cds they sell generally feel they have to offer clients more than they can get on <unk> or from banks and thrifts directly + <unk> sold at monday 's auction yielded N N for six months and N N for three months up from N N and N N respectively the week before + so-called jumbo cds typically in denominations of $ N and up also usually follow <unk> and interest rate trends in general more than those aimed at small investors + some <unk> posted <unk> changes in average yields this week both up and down + the average yield on <unk> <unk> rose to N N from N N while the two-year average fell by the same amount to N N + six-month and <unk> yields were unchanged on average + the cd market is unsettled right now said banxquote 's mr. mehl + it 's very easily influenced by changes in the stock market and the junk bond market + the small changes in averages reflect generally unchanged yields at many major banks + some however lowered yields significantly + at chase manhattan bank in new york for example the yield on a small <unk> six-month cd fell about a quarter of a percentage point to N N + in california bank of america dropped the yield on both six-month and one-year savings cds to N N from N N + yields on money-market deposits were unchanged at an average N N for $ N and less and down just a <unk> of a percentage point to N N for jumbo deposits + lion nathan ltd. agreed to buy the franchise to bottle distribute and market <unk> soft-drink products in australia the company said + the new zealand brewing and retail concern did n't disclose terms + the agreement is effective jan. N and is subject to approval from australia 's foreign investment review board + <unk> <unk> australia ltd. has held the australian pepsi franchise for the past four years + lion nathan and <unk> australia a unit of pepsico inc. of the u.s. did n't say why <unk> <unk> will no longer hold the franchise + wang laboratories inc. has sold $ N million of assets and reached agreements in principle to sell an additional $ N million shortly richard miller president said at the annual meeting + he said wang had reached an agreement with a major financial firm to sell for $ N million its domestic equipment lease portfolio and that of its wang credit corp. subsidiary + he said it also agreed to sell a portion of its european real estate unit for $ N million + mr. miller said that wang has already sold some $ N million of <unk> assets and disclosed that it had received $ N million from compaq computer corp. houston in the previously announced sale of its <unk> scotland plant + mr. miller repeated that in the next six months he plans to sell another $ N million to $ N million of assets to repay debt and reduce interest costs at wang a <unk> maker in <unk> mass + in response to questions after the annual meeting mr. miller said the company is no longer looking for an equity investor + during the summer wang executives had said they might seek outside investment + murata <unk> co. said it is establishing a subsidiary in britain to produce electric parts including ceramic <unk> + the tokyo maker of ceramic <unk> said it purchased a plant in <unk> + the company did n't disclose a purchase price or capitalization figures + murata said however it will invest about N billion yen $ N million in the new company + production is slated to begin in april + the company which has a european <unk> murata europe management g.m.b h. in germany said the latest venture is designed to meet demand for electric parts in european community countries ahead of the creation of the unified market by the end of N + murata expects sales at the unit of about N billion yen in the first year + <unk> stores inc. reported a N N decline in profit for the fiscal third quarter but said operating improvements were <unk> by unusual gains in the year-earlier period + the oakland grocery retailer closely held since a $ N billion leveraged buy-out in N said profit for the three months ended sept. N was $ N million compared with $ N million a year earlier + but it said the year-earlier results included gains of $ N million from <unk> + sales rose N N to $ N billion from $ N billion + for the nine months the company said profit fell N N to $ N million from $ N million in the year-earlier quarter which included <unk> gains of $ N million + sales increased N N to $ N billion from $ N billion + benjamin jacobson & sons has been the new york stock exchange specialist firm in charge of trading stock in ual corp. and its <unk> since the early 1930s + but the firm has never had a day like yesterday + at first ual did n't open because of an order <unk> + when it did a half-hour into the session it was priced at $ N a share down more than $ N from monday 's close + it sank further to as low as $ N but a big rally developed in the last half hour pushing the stock back up to close at $ N down just $ N from monday + in the process N million shares traded making ual the second most active issue on the big board + <unk> pizza when they could and <unk> until their voices gave out the two benjamin jacobson specialists at the big board 's ual trading post yesterday <unk> over what can only be described as a financial <unk> + it was chaotic + but we like to call it controlled chaos said <unk> robert j. jacobson jr. <unk> of the firm 's founder + he <unk> the ual post yesterday with christopher bates N an energetic long <unk> who 's a dead ringer for actor <unk> <unk> + who was doing all the selling + options traders arbitrage traders everyone said mr. bates cooling down with a <unk> of apple <unk> after the close yesterday + added mr. jacobson there were some pretty bad losses in the stock + big board traders said a <unk> buy order at $ N a share entered by bear stearns & co. which was active in ual stock all day is what set off the ual crowd in the late afternoon + a subsequent rally in ual helped the staggering stock market stage an <unk> recovery from an <unk> deficit to finish only slightly below monday 's close + both jacobson traders who had been hoping ual trading would get back to normal read the news about the <unk> of ual takeover plans on the train into work yesterday morning + the news told them it would be a while longer before ual resumed trading like a regular airline stock after months of gyrations + when mr. jacobson walked into the office at N a.m. edt he announced ok buckle up + messrs. jacobson and bates walked on the big board floor at about N a.m. yesterday and immediately spotted trouble + already entered in the big board 's computers and <unk> to their post were sell orders for N ual shares + the ual news had already caused a selling furor in the so-called third market in which firms buy and sell stock away from the exchange floor + ual which closed on the big board monday at $ N a share traded in the third market afterward as low as $ N a share + there were rumors of $ <unk> trades + in the N minutes before the N opening bell the jacobson specialists kept getting sell orders heavier than they <unk> + and at N they posted a $ N to $ N first indication or the price range in which the stock would probably open + that range was quickly narrowed to $ N to $ N although traders surrounding the post were told that $ N to $ N would be the likely target + when ual finally opened a half hour late some N shares traded at $ N + there was selling pressure from everyone said one trader + this month 's friday-the-13th market plunge spurred by ual news was n't as bad for the jacobson specialists as yesterday 's action + on that earlier day the stock 's trading was halted at a critical time so the specialists could catch their breath + not yesterday + mr. jacobson his gray hair flying did n't wear out his <unk> <unk> but he sweat so much he considered sending out for a new <unk> + mr. bates usually handles day-to-day ual trading on his own + but yesterday the heavy trading action eventually consumed not only messrs. jacobson and bates but four other jacobson partners all doing their <unk> job of <unk> buyers and sellers together and adjusting prices to accommodate the market + about N floor traders <unk> near the ual post most of the day and probably hundreds more came and went a <unk> mass as one trader described it + the N <unk> volume flowing through the jacobson specialist operation was about five times normal for the stock + the heavy buying in the last half hour led the specialists to take special steps + the bear stearns order that marked the <unk> turnaround caused a massive buying effort as ual jumped $ N a share to $ N in the last half hour said mr. bates + with N seconds of trading to go mr. jacobson with what voice he had left announced to the trading <unk> we 're going to trade one price on the bell + that meant no trading would occur in the final seconds as a way of making sure that <unk> orders are n't <unk> to a sudden price swing that would upset customers + about N shares sold at $ N on the bell representing about eight to N late orders the specialists estimate + big board traders praised the jacobson specialists for getting through yesterday without a trading halt + in chicago a ual spokesman by way of policy declined to comment on the company 's stock or the specialists ' performance + leaving the exchange at about N p.m. the jacobson specialists made no predictions about how trading might go today + said <unk> ellis a jacobson partner who got involved in the ual action it all starts all over again today + britain 's current account deficit dropped to # N billion $ N billion in september from an adjusted # billion $ N billion the previous month but the improvement comes amid increasing concern that a recession could strike the u.k. economy next year + the confederation of british industry 's latest survey shows that business executives expect a <unk> slowdown largely because of a <unk> series of interest-rate increases that has raised banks ' base lending rates to N N + the outlook has deteriorated since the summer with orders and employment falling and output at a standstill said david <unk> chairman of the industry group 's economic committee + he also said investment by businesses is falling off + of N companies surveyed N N expect to cut spending on plant equipment and machinery while only N N plan to spend more + but despite mounting recession fears government data do n't yet show the economy <unk> to a halt + unemployment for example has continued to decline and the september trade figures showed increases in both imports and exports + as a result prime minister margaret thatcher 's government is n't currently expected to ease interest rates before next spring if then + chancellor of the exchequer nigel lawson views the high rates as his chief weapon against inflation which was <unk> by tax cuts and loose credit policies in N and N + officials fear that any <unk> this year could <unk> inflation or further weaken the pound against other major currencies + <unk> off attacks on his economic policies in a house of commons debate yesterday mr. lawson said inflation remains the greatest threat to our economic <unk> and promised to take whatever steps are needed to <unk> it off + the latest government figures said retail prices in september were up N N from a year earlier + many economists have started predicting a mild recession next year + david owen u.k. economist with kleinwort benson group reduced his growth forecast for N to N N from N N and termed the risk of recession next year quite high + but he said the downturn probably wo n't become a major <unk> similar to those of N and N + still britain 's current slump is a cause for concern here as the nation joins in the european community 's plan to create a unified market by N + compared with the major economies on the continent the u.k. faces both higher inflation and lower growth in the next several months + as a result mr. owen warned investment will be more likely to flow toward the other european economies and the u.k. will be less prepared for the single market + britain 's latest trade figures contained some positive news for the economy such as a surge in the volume of exports which were N N higher than a year earlier + but while september exports rose to # N billion imports shot up to # N billion + the resulting # N billion merchandise trade deficit was partly offset by an assumed surplus of # N million in so-called <unk> items which include income from investments services and official transfers + despite the narrowing of the monthly trade gap economists expect the current account deficit for all of N to swell to about # N billion from # N billion in N + increasingly economists say the big deficit reflects the slipping competitive position of british industry + when the country gets <unk> we tend to buy high-quality imports mr. owen said + vickers plc a british aerospace defense and automotive conglomerate said it reached an agreed cash bid of # N million $ N million for ross <unk> group plc a maker of specialty <unk> and <unk> + the company said it expects to receive acceptances for its offer of N pence $ N per share representing at least N N of ross <unk> 's issued share capital or N million ordinary shares + vickers said its offer also includes an option to receive a <unk> loan note in <unk> of cash + the notes can be redeemed starting in july N + the company said its acquisition of ross <unk> will be covered largely by cash raised in its july disposal of <unk> for # N million + if <unk> wo n't pay high prices for <unk> anymore who will + <unk> are betting on the common folk + the thoroughbred owners and <unk> association a lexington <unk> trade group has launched <unk> for potential investors at race tracks around the country + the group which has held half a dozen <unk> so far also is considering promotional <unk> and perhaps a pitch to wall street investment bankers + people in this business have been <unk> says <unk> pons a horse <unk> from <unk> air md + but the real future of this game is in a number of people owning a few horses + at the laurel race track the <unk> are <unk> people like tim <unk> a beer packaging plant worker + right now mr. <unk> is <unk> his racing program <unk> for <unk> on the <unk> a <unk> thoroughbred <unk> down the home stretch + mr. <unk> <unk> that he sold all his stocks a week before the market plummeted N points on oct. N and he is using the money to help buy a <unk> horse farm + just imagine how exciting that would be if that 's your horse he says + but experts caution that this is n't a game for anyone with a weak <unk> or <unk> + it 's a <unk> business warns charles c. <unk> a lexington attorney and former kentucky state securities commissioner + you have to go into it firmly <unk> that it 's the kind of investment where you can lose everything + and many have done just that + consider <unk> farm a prominent lexington horse farm that went public in N but hit hard times and filed for bankruptcy-court protection last year + a group of investors recently bought the remaining assets of <unk> hoping to rebuild it + other investors have lost millions in partnerships that bought thoroughbred <unk> or <unk> breeding rights + one big problem has been the thoroughbred <unk> market + from N to N prices for the best <unk> at the summer sales rose N N to an average of $ N + since then prices have slumped to an average of $ N this summer + but that 's for the best horses with most selling for much less as little as $ N for some <unk> <unk> + even while they move outside their traditional tony circle <unk> owners still try to capitalize on the <unk> of the sport + glossy <unk> circulated at <unk> <unk> about the <unk> of the winner 's circle and <unk> <unk> + one <unk> promises <unk> parties post times <unk> and <unk> + it 's just a matter of marketing and promoting ourselves says <unk> bell a <unk> horse <unk> from lexington + maybe it 's not that simple + for <unk> <unk> buyers have to remember the basic problem of such ventures these <unk> do n't come with <unk> + and for every champion there are plenty of <unk> + <unk> <unk> a veteran <unk> at the laurel md. track offers <unk> a <unk> tour of a horse <unk> noting that only three of about a dozen horses have won sizable <unk> + one brown <unk> <unk> was <unk> from a cold while another had <unk> on its <unk> keeping both animals from the <unk> + you can see the highs and lows of the business all under one <unk> she tells the group + there are n't too many winners + perhaps the biggest hurdle owners face is convincing newcomers that this is a reputable business + some badly managed partnerships have burned investors sometimes after they received advice from industry consultants + so owners have developed a code of ethics <unk> rules for consultants and agents and disclosure of fees and any conflicts of interest + but some are skeptical of the code 's effectiveness + the industry is based on individual honesty says cap <unk> a lexington horse farmer and one of the investors who bought <unk> + despite the drop in prices for <unk> owning one still is n't cheap + at the low end investors can spend $ N or more to own a <unk> in partnership with others + at a <unk> sale a buyer can go solo and get a horse for a few thousand dollars + but that means paying the horse 's maintenance on average it costs $ N a year to raise a horse + for those looking for something between a minority stake and total ownership the owners ' group is considering a special sale where established horse <unk> would sell a N N stake in horses to newcomers + <unk> industries inc. <unk> its quarterly dividend to five cents a share payable nov. N to stock of record nov. N + the company 's quarterly dividend had been N cents a share since april N N + <unk> recently said it would incur an <unk> charge of about $ N million in its fourth quarter ending tuesday in connection with the sale and <unk> of several lines at a plant + the <unk> conn. maker of industrial fasteners and metal <unk> has N million shares outstanding + dunkin donuts inc. <unk> a takeover proposal by canada 's dd acquisition corp. said that its directors will evaluate takeover offers submitted by nov. N + dunkin donuts based in <unk> mass. previously said it would explore alternatives including a leveraged buy-out of the company but had n't set a date for <unk> of proposals + dunkin donuts chairman and chief executive robert m. <unk> said a sale is one alternative being considered but he added the board has n't decided whether to sell the <unk> <unk> + dd acquisition jointly owned by unicorp canada corp. 's <unk> capital group unit and cara operations ltd. has made a $ <unk> tender offer valued at $ N million for dunkin donuts + dunkin donuts ' announcement followed dd acquisition 's request to the delaware court of chancery monday to set a trial date for its suit against the company + the trial had been postponed to allow dunkin donuts to seek alternatives to dd acquisition 's offer + combustion engineering inc. said third-quarter net income of $ N million <unk> a $ N million year-earlier loss + the stamford conn. <unk> products and services company said per-share earnings were N cents compared with the year-ago loss of $ N + sales fell N N to $ N million from $ N million + strong profit in the process industries including chemical and pulp and paper were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts + combustion reported improved profits in its <unk> and control products businesses and it narrowed its losses in its public sector and environmental segment + power generation had higher sales but lower earnings the company cited factors including work on certain low <unk> contracts from previous years + net in the latest quarter included a pretax gain of $ N million from the sale of combustion 's minority interest in stein <unk> to <unk> <unk> n.v. of the netherlands + last year 's results reflected a gain of $ N million on <unk> of assets and a $ N million pretax provision mainly from costs of completing certain <unk> and other power plants + <unk> bebear chairman and chief executive officer of <unk> assurances pledged to retain employees and management of farmers group inc. including leo e. <unk> jr. chairman and chief executive officer if axa succeeds in acquiring farmers + mr. bebear added that the french insurer would keep farmers ' headquarters in los angeles and will not send french people to run the company + axa would also maintain farmers ' relationships with the insurance exchanges that it manages + mr. bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the u.s. for the proposed acquisition + the bid is part of sir james goldsmith 's unfriendly takeover attempt for b.a.t industries plc the british tobacco retailing paper and financial-services giant that acquired farmers last year for $ N billion + axa has agreed to acquire farmers from sir james 's investment vehicle <unk> investments ltd. for $ N billion plus a $ N billion investment in <unk> + any acquisition of farmers needs the approval of insurance commissioners in the nine states where farmers operates and mr. bebear 's trip will take him to idaho arizona and new york after his stay here he will meet with insurance regulators legislators industry <unk> and the press + hearings on axa 's acquisition application have been set for nov. N in idaho nov. N in illinois nov. N and dec. N in arizona dec. N in washington state and jan. N in oregon + hearings have n't yet been set in texas ohio and kansas + california 's insurance commissioner does n't hold hearings on acquisition applications + although axa has been rebuffed by farmers and has n't had any meetings with management mr. bebear nonetheless appears to be trying to woo the company 's executives with promises of <unk> and <unk> authority under axa + he said mr. <unk> would be a member of the top management team of the <unk> group of companies and would help define policies and strategies of the group + farmers was quick yesterday to point out the many negative aspects it sees in having axa as its parent + for one axa plans to do away with certain tax credits that have resulted in more than $ N million paid to the farmers exchanges during the past few years to offset underwriting losses + those credits result because of taxes that farmers as the management company has paid and have proved to be very important for the exchanges a farmers spokesman said + mr. bebear contended that the tax cost to the exchanges under the revised structure would be about $ N million a year which he described as peanuts + honeywell inc. minneapolis said it completed its previously announced sale of N N of the shares outstanding in its japanese joint venture <unk> for $ N million + the stake was acquired by a group of N japanese financial institutions and industrial corporations primarily insurance companies honeywell said + proceeds will be used to repurchase as many as N million shares of honeywell stock as previously announced + honeywell said a second sale of <unk> is still being negotiated + the company which now holds a N N stake in the venture has indicated that it intends to retain at least a N N stake long term + a N N stake would allow honeywell to include <unk> earnings in its results + a company spokesman said the gain on the sale could n't be estimated until the tax treatment has been determined + oppenheimer capital limited partnership increased the quarterly distribution to N cents a limited partnership unit from N cents + the distribution represents available cash flow from the partnership between aug. N and oct. N + it is payable nov. N to units of record oct. N + the money manager is controlled N N by its top officers and top officers of oppenheimer & co. a securities firm + both firms are in new york + oppenheimer capital has about N million limited partnership units outstanding + in new york stock exchange composite trading yesterday the units closed at $ N up N cents + bank of montreal said it added N million canadian dollars us$ N million to its reserves against losses on third world loans bringing the total it has set aside this year to c$ N billion + the bank said the c$ N billion in reserves will result in a charge of c$ N million against earnings but said it still expects to report a profit for the year ending tuesday + the bank reported net income of c$ N million for the nine months ended july N + the bank said the increase in loan-loss provisions wo n't affect the payment of dividends + the bank said reserves now amount to N N of its total <unk> exposure + excluding mexico reserves equal N N of <unk> exposure + in toronto stock exchange trading bank of montreal closed at c$ N up N canadian cents + knight-ridder inc. said third-quarter earnings jumped N N partly because of the sale of two of its media properties + the media concern said net income rose to $ N million or N cents a share from $ N million or N cents a share in the year-earlier period + the latest results include a gain of $ N million or eight cents a share on the sale of television stations in oklahoma city and <unk> mich + revenue increased N N to $ N million from $ N million + robert f. <unk> knight-ridder 's chief financial officer said the company was pleased with its overall performance despite only <unk> growth in newspaper revenue + that division 's revenue rose N N to $ N million from $ N million in the year-ago period + gains in advertising revenue however resulted in operating profit of $ N million up N N from $ N million + in new york stock exchange composite trading knight <unk> closed at $ N a share down N cents + alberta energy co. calgary said it filed a preliminary prospectus for an offering of common shares + the natural resources development concern said proceeds will be used to repay long-term debt which stood at N million canadian dollars us$ N million at the end of N + the company plans to raise between c$ N million and c$ N million from the offering according to a spokeswoman at <unk> <unk> of canada ltd. lead underwriter + the shares will be priced in early november she said + general electric co. executives and lawyers provided misleading and false information to the pentagon in N in an effort to cover up longstanding fraudulent billing practices federal prosecutors alleged in legal briefs + the government 's startling allegations filed only days before the scheduled start of a criminal <unk> trial against ge in philadelphia federal district court challenge the <unk> and <unk> of the nation 's third-largest defense contractor + in a strongly <unk> response <unk> a filing made in the same court yesterday ge asserted that prosecutors have misstated the testimony of witnesses distorted documents and ignored important facts + the company attacked the government 's allegations as reckless and <unk> <unk> and said its management promptly and accurately reported to the pentagon all relevant information about billing practices + the case strikes at the corporate image of ge which provides the military with everything from jet engines and electronic <unk> equipment to highly classified design work on the strategic defense initiative and could cause a loss of future defense contracts if pentagon and justice department officials take a tough stance + the company has been considered an industry leader in <unk> cooperation and voluntary disclosures of improper or inflated billing practices + but the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to <unk> from federal authorities the extent and details of widespread fraudulent billing practices + the problems were uncovered during a series of internal investigations of the company 's space systems division which has been the focus of two separate <unk> prosecutions by the government since N + the dispute stems from pretrial <unk> in the pending court case in which prosecutors have been demanding access to a host of internal company <unk> reports and documents + last november a federal grand jury indicted ge on charges of fraud and false claims in connection with an alleged scheme to <unk> the army of $ N million on a <unk> computer contract + the company for its part maintains that many of the disputed documents are <unk> <unk> communications that should n't be turned over to prosecutors + a hearing is scheduled on the issue today + the government 's <unk> filing covers events leading up to the current case and an earlier indictment in march N when ge was accused of <unk> the pentagon by illegally claiming cost overruns on <unk> missile contracts + ge pleaded guilty and paid a fine of more than $ N million in the <unk> case which involved some of the same individuals and operations that are at the center of the dispute in the philadelphia court + in order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts prosecutors contend that <unk> ge executives and company lawyers provided misleading statements to <unk> force secretary <unk> <unk> and other pentagon officials during a series of meetings in N + overall the government contends that ge 's disclosure efforts largely were intended to curry favor with pentagon officials without detailing the extent of the management <unk> and allegedly pervasive billing <unk> uncovered by company investigations + prosecutors <unk> a company that allegedly sat on damaging evidence of <unk> from N to N despite warnings from an internal <unk> + when ge finally disclosed the problems prosecutors contend that mr. <unk> was <unk> informed that the suspected practices had only just been discovered by ge management + in its brief the government asserted that it needs the internal ge documents to <unk> anticipated efforts by ge during the trial to demonstrate its good corporate character + ge which was surprised by the last-minute subpoena for more than N boxes and file <unk> of documents <unk> that senior ge managers did n't find out about questionable billing practices until N and that the information was passed on quickly to mr. <unk> at his first meeting with company representatives + subsequent meetings initiated after the company and two of its units were briefly suspended from federal contracts were held to <unk> mr. <unk> with the company 's <unk> procedures and to disclose additional information according to ge + ge 's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity + the company 's conduct does not even raise a question of <unk> corporate intent <unk> or <unk> ge 's brief asserts + on the contrary it shows a corporation reacting swiftly and aggressively to very difficult issues in largely <unk> waters + mr. <unk> could n't be reached for comment yesterday + applied solar energy corp. of city of industry calif. said it and its majority shareholder american <unk> co. signed a <unk> letter of intent for the acquisition of applied solar by mcdonnell douglas corp. for about $ N million + the proposed acquisition provides for a cash payment of $ N a share at closing and a contingent payment of as much as N cents a share placed in escrow + details of the escrow agreement have n't been completed the companies said + there are N million shares of applied solar of which american <unk> owns N million + american <unk> is a wayne n.j. chemicals drugs and fertilizer concern + completion of the acquisition is subject to execution of a definitive agreement approval by all three companies ' boards and the approval of applied solar 's shareholders + an applied solar spokesman said completion is expected at the end of the year or early next year + a spokeswoman for the st. louis aerospace and defense concern said it wanted the <unk> because applied solar is involved in solar cells and <unk> laser components and this fits with mcdonnell 's business of laser applications for military space + trading in cineplex odeon corp. shares was halted on the new york and toronto stock exchanges late yesterday afternoon at the company 's request toronto stock exchange officials said + brian <unk> a spokesman for the company 's committee of independent directors established in may to <unk> and evaluate offers for the company said it was expected to make an announcement early this morning + but mr. <unk> said he was n't aware of the nature of the talks under way between committee members and their advisers + cineplex traded on the new york stock exchange at $ N a share up $ N before trading was halted + analysts have speculated in recent days that the value of offers received by the committee fell well short of what they had hoped or even that the company 's chairman president and chief executive officer <unk> drabinsky is the only bidder for the company as a whole + the current effort to auction off the company was triggered by a dispute between mr. drabinsky and the toronto-based movie chain 's major shareholder mca inc + london share prices closed sharply lower tuesday on the back of wall street 's steep drop and renewed fears over u.k. economic fundamentals + tokyo 's winning streak came to an end and stocks fell in frankfurt and across europe as well + london 's financial times 100-share index shed N points to finish at N + at london 's close the dow jones industrial average was N points lower at N + dealers said the initial pressure came from mildly disappointing u.k. trade figures for september and a worrisome report by the confederation of british industry that a decline in orders for manufactured goods is <unk> both business optimism and investment plans for the coming year + the trade and <unk> reports <unk> attention on high interest rates and corporate profitability and helped <unk> underlying concerns over prospects for a recession in the u.k. dealers said + the 30-share index fell N points to N + volume was a modest N million shares traded but better than the year 's lowest turnover of N million monday + market watchers also noted an absence of institutional interest later in the session helped <unk> the way for broader declines when wall street opened weaker + they added that market-makers were knocking share prices down in <unk> in a bid to attract some interest but the action largely helped open the way for london 's late declines + insurance stocks provided some early support to the market partly on favorable brokerage <unk> and talk of continental european interest in british life and composite insurers + british life insurer london & general which firmed N pence to N pence $ N and composite insurer royal insurance which finished N lower at N were featured in the talk + on the life insurance side <unk> group finished N lower at N and sun life dropped N to # N + jaguar finished N lower at N + dealers said the market did n't react substantially to ford motor co. 's disclosure to the u.s. securities and exchange commission that it will seek N N of jaguar 's shares outstanding when u.k. government share regulations are lifted at the end of next year + tokyo stocks closed easier posting their first loss in six trading days partly because of <unk> <unk> selling by trust investment funds in the afternoon session + the nikkei index fell N points to N + the index gained N points monday + in early trading in tokyo wednesday the nikkei index rose N points to N + on tuesday the tokyo stock price index of all first section issues was down N at N + first section volume was estimated at N million shares up from N million monday + observers said the market again failed to find a trading focus discouraging much participation by investors + the market however is expected to remain stable and expectations for future gains are high traders said + such sentiment is being supported by word that a large amount of cash from investment trust funds is scheduled to enter the market later this week and in early november + the expected amount is said to be N billion yen $ N billion to N trillion yen the second largest amount this year in a given period following the record high set at the end of july according to market observers + in addition to a large amount of investment trust fund cash analysts generally see the market environment improving compared with the past couple of weeks + <unk> <unk> an analyst at yamaichi securities said the market sentiment is bullish simply because there are few bad factors + buying activity tuesday centered on a wide range of <unk> domestic <unk> shares whose prices range from N to N yen + investors expect these shares will be targets of investment trust funds which often buy small amounts spread across a wide range of issues + on the other hand high-priced shares such as pioneer electronic and sony failed to spark investor interest because these issues are unlikely to be bought by investment trust funds observers said + tuesday 's notable losers were <unk> shares such as pioneer which shed N yen to N yen + sony was down N to N + <unk> fell N to N fuji photo film declined N to N and <unk> dropped N to N + share prices on the frankfurt stock exchange closed sharply lower in thin dealings as worried investors remained idle as the result of two potentially <unk> domestic developments + the dax index fell N to end at N + cutting against the downward trend was continental which jumped N marks to N marks $ N in heavy trading on rumors that the tire maker is about to be taken over + it jumped N monday + traders said the market was exceptionally thin as small investors remain on the sidelines + market participants say investors are not only <unk> their <unk> following the turbulence last week but they have also been made nervous by two events in west germany + on sunday the governing christian democratic union suffered a series of setbacks the extent of which became fully known only late monday in municipal elections in <unk> + traders say investors are worried that the <unk> wo n't be able to hold office in federal elections at the end of N + and statements by the chairman of the ig metall labor union <unk> <unk> also cast a cloud over trading dealers said + mr. <unk> said at a convention in west berlin that the union has to prepare for a big fight to achieve its main goal of a <unk> <unk> down from current <unk> <unk> + the decline in prices cut broadly through the blue-chip issues as siemens tumbled N to N deutsche bank plunged N to N and the auto makers fell sharply as well + daimler-benz dropped N to N <unk> <unk> <unk> dropped N to N and <unk> lost N + elsewhere share prices closed lower in zurich amsterdam milan and stockholm + <unk> about wall street was cited in several markets + prices closed lower in sydney singapore and wellington were mixed in hong kong and higher in taipei manila paris brussels and seoul + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + directors of <unk> bank and <unk> <unk> <unk> two of norway 's leading banks announced they had agreed to the formal merger of the banks + the merger would create <unk> 's seventh largest bank with combined assets of N billion norwegian <unk> $ N billion + the banks said an application for a <unk> to merge into one entity to be called <unk> <unk> bank as was sent monday to the finance ministry + the two boards said in a joint statement that the proposed merger agreement was considered in separate board meetings in <unk> monday + they said the agreement will be submitted to their respective <unk> boards next wednesday + extraordinary general meetings to be held nov. N will decide the share exchange ratio + the merger requires the approval of norwegian authorities + savings and loans reject blacks for mortgage loans twice as often as they reject whites the office of thrift supervision said + but that does n't necessarily mean thrifts are <unk> against blacks the agency said + the office an arm of the treasury said it does n't have data on the financial position of applicants and thus ca n't determine why blacks are rejected more often + nevertheless on capitol hill where the information was released yesterday at a senate banking subcommittee hearing lawmakers said they are worried that financial institutions are routinely <unk> against minorities + they asked regulators to suggest new ways to force banks and thrifts to comply with <unk> laws + sen. alan <unk> d ill. chairman of the subcommittee on consumer and regulatory affairs said i 'm not a <unk> + but when blacks are getting their loan applications rejected twice as often as whites and in some cities it is three and four times as often i conclude that discrimination is part of the problem + james <unk> a spokesman for the u.s. league of savings institutions said the data is a red flag but lacking the financial data you ca n't make a case that discrimination is widespread + the trade group official added certainly the federal government should take a hard look at it + sen. <unk> held the hearing to follow up on a provision in the savings and loan bailout bill that required regulators to report on evidence of <unk> in mortgage lending + the legislation also requires broad new disclosures of the race sex and income level of borrowers but that information wo n't be gathered in new studies for several months at least + the federal reserve said its studies in recent years which adjust for income differences and other <unk> showed that blacks received fewer home mortgages from banks and thrifts than whites + but john <unk> a fed governor told the subcommittee the evidence is mixed and that the fed 's believes the vast majority of banks are n't <unk> + for instance he noted the fed studies have shown that blacks receive more home improvement loans than whites + several lawmakers were angered that the bank and thrift regulators generally said they have been too busy handling the record number of bank and thrift failures in the past few years to put much energy into investigating possible discrimination + we would be the first to admit that we have not devoted the necessary amount of emphasis over the past several years to developing <unk> for discrimination said jonathan <unk> a top official of the office of thrift supervision + if we 've got folks out there who are being turned away in the mortgage market improperly and unfairly said sen. donald <unk> d. mich. chairman of the banking committee then that is a matter that needs remedy now not six months from now or six years from now or N years from now + officials of the federal deposit insurance corp. and the office of the comptroller of the currency said they have <unk> only a few banks for violations of <unk> laws + the fdic said it has issued five <unk> to banks over the past three years for <unk> practices + the comptroller 's office said it found no indications of illegal discrimination in N <unk> of banks since april N + the comptroller 's office also said that of N complaints it received since january N only N alleged racial discrimination in real estate lending + the agency investigated the complaints but no violations were cited + thrift regulators did n't give any figures on their enforcement actions + mr. <unk> said that among the possibilities being considered by regulators to fight discrimination is the use of <unk> government investigators who would pose as home buyers + the department of housing and urban development has used <unk> to investigate discrimination in rental housing + using <unk> could be controversial with financial institutions but mr. <unk> said the u.s. league of savings institutions had n't yet taken any position on the matter + time warner inc. is considering a legal challenge to tele-communications inc. 's plan to buy half of showtime networks inc. a move that could lead to <unk> war between the cable industry 's two most powerful players + time is also fighting the transaction on other fronts by attempting to discourage other cable operators from joining tele-communications as investors in showtime cable-tv industry executives say + time officials declined to comment + last week tele-communications agreed to pay viacom inc. $ N million for a N N stake in its showtime subsidiary which is a distant second to time 's home box office in the delivery of <unk> networks to cable subscribers + tele-communications the u.s. 's largest cable company said it may seek other cable partners to join in its investment + tele-communications is hbo 's largest customer and the two have a number of other business relationships + earlier this year time even discussed bringing tele-communications in as an investor in hbo executives at both companies said + the purchase of the showtime stake is a direct <unk> in our face said one senior time executive + time is expected to mount a legal challenge in u.s. district court in new york where viacom in may filed a $ N billion antitrust suit charging time and hbo with <unk> the <unk> business and trying to crush competition from showtime + executives involved in <unk> time 's defense say it is now preparing a <unk> naming both viacom and tele-communications as defendants + the executives say time may seek to break up the transaction after it is <unk> or may seek constraints that would prevent tele-communications from dropping hbo in any of its cable systems in favor of showtime + viacom officials declined to comment + jerome <unk> tele-communications ' chief outside counsel said he was n't aware of time 's legal plans + but he said that any effort by time to <unk> the tele-communications investment in showtime as <unk> would be the pot calling the <unk> black + it 's hard to see how an investment by the largest cable operator in the weaker of the two networks is <unk> when the stronger of the two networks is owned by the second largest cable operator mr. <unk> said + in addition to owning hbo with N million subscribers time warner separately operates cable-tv system serving about N million cable-tv subscribers + tele-communications controls close to N million cable subscribers and viacom has about one million + in its suit against time viacom says the ownership of both cable systems and <unk> networks gives the company too much market power + time argues that in joining up with tele-communications viacom has potentially more power particularly since viacom also owns cable networks <unk> <unk> and <unk> at <unk> + ironically tele-communications and time have often worked closely in the cable business + together they control nearly N N of turner broadcasting systems inc. tele-communications has a N N stake while time warner has a N N stake + but since time 's merger with warner communications inc. relations between the two have become <unk> + each company worries that the other is becoming too powerful and too <unk> integrated + meanwhile some legal observers say the tele-communications investment and other developments are weakening viacom 's antitrust suit against time + viacom <unk> time in its suit of refusing to carry showtime or a sister service the movie channel on time 's manhattan cable tv system one of the nation 's largest urban systems + but yesterday manhattan cable announced it will launch showtime on nov. N to over N subscribers + showtime has also accused hbo of <unk> up the lion 's share of hollywood 's movies by signing exclusive contracts with all the major studios + but showtime has continued to sign new contracts with hollywood studios and yesterday announced it will buy movies from columbia pictures entertainment inc. which currently has a <unk> arrangement with hbo + the federal trade commission said it authorized its staff to seek a preliminary injunction barring imo industries inc. from acquiring the shares outstanding of the u.s. unit of the british company united scientific holdings plc for $ N million + the ftc said it had reason to believe that the proposed acquisition could substantially reduce competition in the production of certain image <unk> <unk> which are important components of <unk> devices sold primarily to the defense industry + the ftc said it would seek to <unk> the proposed acquisition in a federal trial court but declined to specify which one + under federal law if the court grants a preliminary injunction the ftc must begin administrative proceedings to determine the <unk> of the proposed stock purchase within N days + officials at the united scientific unit <unk> corp. of <unk> texas and at imo industries of <unk> n.j. could n't be reached for comment + the airline industry 's fortunes in <unk> shape for most of the year have taken a sudden turn for the worse in the past few weeks + citing rising fuel costs promotional fare cuts and a general slowdown in travel several major carriers have posted or are expected to post relatively poor third-quarter results + yesterday usair group inc. recently one of the industry 's <unk> performers posted a <unk> $ N million net loss for the period + so far the industry 's fourth quarter is n't looking too strong either prompting many analysts to slash earning projections for the rest of the year by as much as <unk> + and they say the outlook for N is nearly as bad + airlines in N came in like a bang and are going out like a <unk> said kevin murphy an airline analyst at morgan stanley & co + this turn of events has put a big <unk> on an industry that seemed almost <unk> last spring when fares were rising at double-digit rates and many carriers seemed to be growing fat on <unk> in certain markets + now many airline companies might become a lot less attractive as takeover targets on wall street + the downturn also raises questions about the carriers ' ambitious orders for new airplanes which currently total $ N billion over the next three years + for travelers though the industry 's problems have had some positive effects + in recent weeks airlines have cut numerous fares in leisure markets to try to win back customers + others have tried to <unk> up <unk> programs + previously airlines were limiting the programs because they were becoming too expensive + just last week for example trans world airlines and pan am corp. 's pan american world airways went so far as to offer cash rebates or gift checks of $ N to $ N to certain <unk> members making <unk> flights in business class or first class + the industry 's slowdown became apparent this month when amr corp. parent of american airlines reported an N N drop in third-quarter net income and said its fourth quarter would be disappointing + shortly before that usair had said its third-quarter results would be significantly lower than a year earlier + yesterday it provided the details + its loss of $ N million or $ N a share <unk> with net of $ N million or $ N a share in the N third quarter + revenue rose only N N in the latest period to $ N billion from $ N billion + for the nine months the <unk> va. company 's net plunged N N to $ N million or N cents a share from $ N million or $ N a share + revenue rose N N to $ N billion from $ N billion + the results surprised many analysts because usair has almost no competition in its pittsburgh hub and has expanded operations by completing its acquisition of <unk> airlines + shortly after announcing its quarterly loss usair 's stock tumbled $ N a share + it ended at $ N down $ N in new york stock exchange composite trading + nobody was expecting this size of a loss said paul <unk> an analyst with first boston corp + one airline executive who declined to be identified called the loss amazing + in announcing the results usair cited many of the same problems that several other industry officials have named recently + it said the industry 's domestic traffic was flat in the third quarter analysts say this was because hefty fare increases earlier in the year scared off many leisure travelers this summer + to try to combat the traffic slowdown airlines started reducing fares average fares rose only N N in august in contrast to increases of N N each in february and march + but so far the effort has failed and traffic is still slow + some other fare promotions have <unk> + this summer the industry introduced a kids fly free program in which children were allowed to fly free if they were traveling with an adult + airlines tried to restrict the program substantially by limiting the offer to certain days of the week but it still was apparently used far more heavily than the airlines expected + airlines also say their <unk> programs are <unk> profits because <unk> are being redeemed at a <unk> rate + one airline official said about three times as many <unk> coupons are being turned in as in previous years not surprisingly as the airlines last year allowed many travelers to build up <unk> at triple the normal rate + rising operating expenses are another problem + fuel costs were up N N in the third quarter + labor costs which <unk> off in the past few years because of lower pay <unk> for newer employees are on the <unk> again at many carriers + and some carriers are facing other unexpected headaches usair for example blamed some of its loss on merger expenses and on disruptions caused by hurricane hugo last month + we can not <unk> the total adverse effects of hugo said edwin <unk> chairman and president of usair group + whatever the cause for the downturn few people are predicting any sudden improvement + airline economics inc. an aviation consulting firm is projecting an industrywide operating profit of $ N billion for N compared with earlier forecasts of $ N billion to $ N billion + as for N the firm predicts that profit will slip to between $ N billion and $ N billion + good <unk> + charlie brown is selling out + those metropolitan life ads were bad enough + but now charlie brown is about to start pitching everything from <unk> party mix to light <unk> + why is he <unk> in now + turns out that next year charlie brown <unk> and the gang turn N and <unk> howard 's united media unit the <unk> and licensing agent for charles <unk> 's comic strip sees a <unk> in licensing the <unk> characters to a <unk> of advertisers for ads <unk> and promotions + peanuts has become a major part of american culture says peter shore united media 's vice president of marketing and licensing + the comic strip has a <unk> <unk> quality about it + our plan is to honor charles <unk> and the strip all year long + the effort will make the peanuts gang very familiar <unk> in N + general electric plans to use the characters to plug its <unk> light <unk> + <unk> will run tv ads at <unk> 's day promoting its <unk> 's love <unk> + ralston <unk> will promote its <unk> party mix 's three new flavor <unk> named for charlie brown <unk> and <unk> + the characters will also be featured in a new public service effort for the united way + beyond the advertisements the <unk> is planning a traveling arena show new tv <unk> for cbs and even an exhibit at the <unk> institute + the <unk> schedule of <unk> will be kicked off officially with a combination live and <unk> <unk> special at the <unk> bowl in january + all the <unk> though have some marketing experts questioning whether the party may go too far + there are too many people participating says al <unk> of <unk> & <unk> a greenwich conn. marketing consulting firm + if you want to cut through the clutter you have to make your message as distinct sharp and individual as possible + sharing a character with other advertisers is n't a way to do that + but united media says it 's very <unk> with the contracts it hands out + we 're not interested in promoting every single product that comes along mr. shore says + metropolitan life ad executives could n't be reached about the use of the peanuts characters by others + but mr. shore says that company 's exclusive advertising rights extend only to the insurance and financial services category + berry <unk> wpp group + norman berry the creative executive who was apparently squeezed out of ogilvy & mather in june is returning to ogilvy 's parent company wpp group plc + mr. berry N had resigned after being asked by ogilvy 's chairman and chief executive officer kenneth roman to give up his title as creative head of the new york office and to take a <unk> international role + yesterday just a day after mr. roman announced he would leave to take a top post at american express wpp said mr. berry would return to take an international role at the parent company + mr. berry said the timing was a <unk> and that his decision was unrelated to mr. roman 's departure + rjr <unk> <unk> + rjr nabisco inc. awarded its national broadcast <unk> <unk> to <unk> katz partners the new york <unk> of chicago-based <unk> <unk> & <unk> + the naming of <unk> katz partners as agency of record for nabisco brands inc. and <unk> <unk> co. follows rjr nabisco 's announcement last week that it will <unk> its rjr nabisco broadcast division and dismiss its N employees dec. N to cut costs + new york-based rjr nabisco would n't say what it spends annually but industry executives say it will spend more than $ N million this year down from about $ N million last year + ad notes + earnings + interpublic group of cos. said third-quarter net rose N N to $ N million or N cents a share from $ N million or N cents a share in the year-earlier period + revenue increased more than N N to $ N million from $ N million + holiday promotion + pepsico inc. will give away N sets of game boy <unk> 's new hand-held video game in a <unk> promotion scheduled to begin nov. N + pepsi said it will spend $ N million advertising the promotion + international business machines corp. agreed to acquire a N N stake in <unk> corp. an australian <unk> and <unk> concern for N million australian dollars us$ N million + the investment will be made through ibm australia ltd. a unit of ibm the two companies said yesterday + ibm can raise its stake in <unk> to N N over three years but agreed to not go beyond N N in that time + <unk> said in a statement it has several well developed product and services relationships with the u.s. computer company and plans to expand these links + the company earns about half its revenue overseas and plans further expansion + a majority stake in <unk> currently held by <unk> corp. will be diluted to slightly less than N N after ibm acquires its interest + the agreement requires approval from australia 's foreign investment review board and national companies and securities commission and from shareholders of <unk> + bond corp holdings ltd. 's consolidated debt totals N billion australian dollars us$ N billion including a$ N billion of bonds convertible into shares + alan bond chairman and controlling shareholder of the <unk> australian media brewing resources and property concern disclosed the debt figures yesterday + the disclosure follows last friday 's news that bond corp. incurred an overall loss of a$ N million for the fiscal year ended june N the largest loss in australian corporate history + the debt load would have been higher but for a reduction of a$ N billion over the past year from asset sales mr. bond said at a business gathering + mr. bond indicated the consolidated debt figures which include debt of units such as bell group ltd. will be published soon in bond corp. 's N annual accounts + he predicted the debt will be reduced by another a$ N billion this fiscal year ending june N N but did n't explain how this will be achieved + mr. bond blamed rising australian interest rates and the acquisition of bell group with its very high levels of <unk> debt for producing a condition that was no longer <unk> + in order to restore confidence and ensure the support of our principal lenders mr. bond said we <unk> on <unk> changes in the structure and direction of the group + that <unk> resulted in continuing asset sales as well as write-offs exceeding a$ N billion last fiscal year + in <unk> we have made a decision to clear the <unk> mr. bond told the meeting + while some assets have been written down others are undervalued in the accounts mr. bond maintained + among these are the company 's australian brewing assets in the books at a$ N million but actually worth a$ N billion he said + an investment in chile 's telephone company is carried at us$ N million but really worth us$ N million and the company 's property portfolio is undervalued by at least a$ N million mr. bond said + mr. bond forecast that by next june what will emerge will be a company with a <unk> sense of purpose a stable balance sheet with <unk> assets in brewing telecommunications media and property + he did n't name energy resources in that list <unk> that all the company 's coal and oil interests might be for sale in total or in part + some of the oil interests already have been sold + <unk> of north america inc. <unk> <unk> <unk> mich. estimated it will sell about as many cars in N as the N it expects to deliver this year + mercedes officials said they expect flat sales next year even though they see the u.s. luxury-car market expanding slightly + erich <unk> president of the u.s. sales arm of west german auto maker <unk> <unk> ag predicted luxury-car sales will rise to N in N from N this year primarily because of the new japanese makes + most of the growth he said will come in the $ <unk> price range where mercedes has a N N u.s. market share + mercedes sold N cars in N + mr. <unk> also said that mercedes plans to bring out new models every year through the mid-1990s and it will <unk> its product development cycle to eight years from N or N years to compete more effectively with toyota motor corp. 's lexus nissan motor co. 's infiniti and honda motor co. 's <unk> luxury-car divisions + <unk> mining co. san francisco blamed the continued slump in gold prices for an N N plunge in third-quarter net income to $ N million or two cents a share from $ N million or N cents a share a year earlier + revenue rose N N to $ N million from $ N million + in new york stock exchange composite trading <unk> closed at $ N down N cents + a significant increase in gold sales to N ounces for the quarter from N in the third quarter of N was more than offset by the continued decline in average gold price <unk> to $ N from $ N per ounce the company said + for the nine months the mining company posted a N N drop in profit to $ N million or N cents a share from $ N million or N cents a share on a N N rise in revenue to $ N million from $ N million + the treasury plans to raise $ N billion in new cash with the sale monday of about $ N billion in short-term bills to redeem $ N billion in maturing bills + the offering will be divided evenly between 13-week and 26-week bills maturing feb. N N and may N N respectively + tenders for the bills available in minimum $ N denominations must be received by N p.m. est monday at the treasury or at federal reserve banks or branches + the treasury said it will alter the auctions unless it has assurance of enactment of legislation to raise the statutory debt limit before the scheduled auctions monday + apogee enterprises inc. said profit for the third quarter ending dec. N will fall below the year-earlier results because of an after-tax charge of $ N million related to a project that was guaranteed by the company + a year ago the minneapolis glass products and aluminum window maker earned $ N million or N cents a share on revenue of $ N million + apogee said the charge stems from a building supply contract in which the company guaranteed a contractor 's performance + apogee said a <unk> had severe cost overruns and was unable to fulfill the contract terms on its own making it necessary for apogee to advance cash to ensure completion of the project + the company said its core businesses have performed well and it expects them to continue to do so in the remainder of the fiscal year + japan 's production of cars trucks and buses in september fell N N from a year ago to N units because of a slip in exports the japan automobile manufacturers ' association said + domestic demand continues to grow but its contribution to higher production was <unk> in september by the estimated N N fall in imports accompanied by a growing tendency for japanese manufacturers to build vehicles overseas according to the association + the association said domestic demand grew N N in september + demand has been growing consistently under the encouragement of <unk> government policies an association spokesman said + he also said the introduction of a N N consumption tax in april has helped sales + the new tax though a source of general <unk> among japanese taxpayers replaced a higher commodities tax that applied to automobiles + japanese domestic <unk> sales rose N N in september the japan automobile dealers ' association said earlier this month + the manufacturers ' association will issue statistics on vehicle exports later this month + production of cars rose to N units in september a N N increase from a year earlier + midsized cars accounted for the greatest growth in units rising N units to N units or N N + <unk> output more than tripled + manufacturers produced N of the vehicles which have engines of N cubic <unk> or less an increase of N units + total truck production fell N N from a year earlier to N units + <unk> production fell N N to N units + bus production also slipped by N N from a year earlier to N units + the association spokesman said bus production has declined since january but could n't offer an explanation for the fall + auto production for the first half of the fiscal year which began in august totaled N units the association said + <unk> production was up N N compared with the same period a year earlier + stock of united airlines parent ual corp. <unk> wildly yesterday amid speculation that one or more investors may challenge the ual board 's decision to remain independent instead of pursuing a buy-out or other transaction + the board 's decision announced after the market closed monday initially prompted a severe sell-off in ual shares which at midday traded as low as $ N a share down $ N a share in composite trading on the new york stock exchange + the <unk> <unk> for takeover-stock traders who by then had seen ual stock tumble N N since oct. N also triggered a <unk> sell-off that sent the dow jones industrial average down more than N points at N a.m + but then steady concentrated buying by bear stearns & co. which frequently buys stock for corporate raiders took hold and <unk> the fall in ual which eventually buoyed the entire market + the industrial average closed down only N points at N + late in the afternoon several big purchases by bear stearns particularly a block of N shares at N p.m. at $ N a share triggered a buying spree that took ual up more than N points in the final hour of trading + ual stock closed at $ N a share down $ N + volume was a tumultuous N million shares or N N of the N million ual shares outstanding + traders estimated that bear stearns bought more than N million shares + the two most frequently rumored buyers neither of whom would comment were coniston partners which battled the ual board in N and new york real estate developer donald trump who recently made and withdrew an offer for american airlines parent amr corp + however one person familiar with ual said the signs pointed to coniston because mr. trump has n't asked for permission to buy more than $ N million of stock under federal antitrust rules + takeover-stock traders <unk> by their huge losses in ual stock remained eager for some action by an outside catalyst following the collapse oct. N of a $ 300-a-share $ N billion labor-management buy-out + their hope was that the catalyst would seek to oust the board in a solicitation of shareholder <unk> + baker nye investments a new york takeover-stock trader that owns ual stock would n't comment on reports the firm is considering seeking such a shareholder vote + but partner richard nye said this is the most extraordinary failed transaction i 've seen in N years in this business + it would make sense for somebody to do it + i have never seen a case of <unk> shared by so many participants + in N baker nye <unk> a proxy fight for control of leaseway transportation inc. that ultimately led to leaseway 's being sold + some traders pointed hopefully to earlier estimates by ual 's investment adviser first boston corp. that <unk> could yield $ N to $ N a share + but those would require pilots ' cooperation + any investor who acquires ual stock in an attempt to force a buy-out or recapitalization must deal with united 's contentious unions + the pilots are working under an expired contract and the machinists contract expires next month + that gives them enormous leverage including the threat of a strike to block any buy-out or recapitalization attempt they oppose + however a catalyst like coniston could seek shareholder support for a sale to a labor-management group at the last price discussed by that group before the board meeting monday + the pilots had been working on a buy-out bid between $ N and $ N a share or $ N billion to $ N billion + one person familiar with ual said the unsettled labor situation and the uncertain world-wide financial markets contributed to the board 's decision to avoid rushing around selling the company at a bargain price particularly since it accepted a $ 300-a-share offer just last month + even some takeover-stock traders said they could n't <unk> with the board 's logic + but the board 's decision prompted many to bail out of the stock yesterday + we had a lot of people who threw in the towel today said <unk> ellis a partner in benjamin jacobson & sons a specialist in trading ual stock on the big board + another trader noted that many arbitrage firms are afraid to sell their ual stock at the bottom but already own so much they ca n't buy any more + this deal is like a <unk> motel he said + they check in but they ca n't check out + but both the traders and the pilots remain interested in some transaction + so too according to many reports is british airways plc despite its public withdrawal from the buy-out + the pilots might end up <unk> up with their longtime <unk> the machinists union in a recapitalization + the machinists are reviewing proposals they made in the past for <unk> that would pay a special shareholder dividend and give employees a minority stake + the company rejected those past proposals + it is unclear however if the machinists would support a majority stake as the pilots want + a <unk> official said that would depend on how much in concessions machinists would have to give in return for the majority stake + some investors whose names were <unk> about by traders as potential ual stock buyers said they were n't buying + i 'm not interested said dallas investor harold simmons + a source close to carl icahn a corporate raider who owns trans world airlines inc. said he has n't owned any ual stock and is n't buying + one person familiar with texas billionaire robert bass said he is n't likely to make any hostile moves + and a spokesman for reliance group holdings inc. which had held N N of ual before the first buy-out bid but later reduced its holdings below N N would n't comment + marvin davis whose $ N billion takeover bid originally put the nation 's second-largest airline in play is limited by a standstill agreement with ual he signed in september + the los angeles investor ca n't buy ual stock <unk> shareholder <unk> or make a new offer unless he makes a formal offer of $ N a share or ual <unk> an offer below $ N + however mr. davis could pressure the board by asking that the agreement be <unk> or letting it be known that he has financing for an offer at a lower price + times mirror co. said third-quarter net income fell N N to $ N million or N cents a share compared with net income of $ N million or N cents a share a year earlier + the los angeles media concern said that the year-ago period included a $ N million gain from the sale of assets primarily <unk> + revenue was $ N million up N N from $ N million + stronger results from the company 's broadcast and cable television units and professional and <unk> publishing divisions plus increased advertising at the company 's largest newspaper the los angeles times offset advertising declines in the company 's newspapers in the eastern u.s. the company said + looking ahead to the fourth quarter the outlook for the newspaper group remains <unk> with no improvement yet seen in operating trends in our eastern markets said robert f. <unk> times mirror 's chairman and chief executive + copper futures sold off sharply yesterday influenced by declines in the stock market and dollar and a rally in bonds + december copper opened near monday 's close tried to rally but failed and then triggered stop-loss orders on its way down to settle at $ N a pound off N cents for the day + stop-loss orders are placed previously with instructions to execute them if the market hits a <unk> price + william kaiser president of the kaiser financial group in chicago said the decline was almost certainly influenced by the early sell-off in the stock market which partly reflected a weakening economy + he said the recent decline in copper stocks was misleading in the face of a slowdown in manufacturing + mr. kaiser said traders could have picked up signals of an imminent price decline had they been watching the scrap metal markets which became <unk> weaker two to three weeks ago + but though a weakening economy implies reduced demand mr. kaiser said that third world <unk> countries have n't any choice but to sell copper + they might even step up sales in a falling market he said in an effort to maintain the flow of foreign exchange into their <unk> + technically mr. kaiser noted that a lot of traders had bought into the market when the price was in the $ N to $ N range thinking there was support at the $ N level + when the market fell below that level on monday and then yesterday could n't climb above that level traders started selling out their positions + <unk> <unk> senior metals analyst at prudential-bache securities in new york agreed that most of the selling was of a technical nature + she said the market hit the $ N level at around N a.m. edt where it encountered a large number of stop-loss orders + more stop-loss orders were touched off all the way down to below $ N where modest buying was attracted + ms. <unk> said the settling of strikes in canada and mexico will have little effect on supplies of copper until early next year + she thinks the next area of support for copper is in the $ N to $ N range + i believe that as soon as the selling <unk> somewhat we could see a rally back to the $ N region she added + she thinks a recovery in the stock market would help copper rebound as well + she noted that the preliminary estimate of the third-quarter gross national product is due out tomorrow and is expected to be up about N N to N N + if the number is a little better then copper will respond <unk> if it is worse then more selling could <unk> she predicted + ms. <unk> noted that relating economic numbers to specific market activity is tricky + yesterday for example the durable goods numbers came out for september and the number was down only N N she said + however if you exclude <unk> orders then durable goods were down N N + i believe that number reflects a slowing economy + she said copper traders will also be looking toward the release of the index of leading economic indicators next tuesday + however david <unk> president of <unk> & co. an international metals company noted that so far this year copper consumption is way ahead of the same period of N and that projected production is below last year + mr. <unk> said the copper market seems to be anticipating a recession in three months with declining use being the result + but he added we have had that exact same perception six times in the last six years + he noted that currently the ratio of available copper to consumption is about N weeks + he said the normal ratio is five to six weeks + according to mr. <unk> the <unk> in copper production is n't at the mines but at the copper refineries + it takes three months to turn copper concentrate into <unk> he said + if there is n't a recession he said we will be out of copper by the end of march + if there is a recession that will change the statistical situation + he thinks that without a recession copper prices could exceed a high of $ N a pound which was reached last year + in the past mr. <unk> has been known to have substantial long positions that is he had bought copper futures in anticipation of rising prices in the copper futures market + in other commodity markets yesterday + energy the attitude was <unk> in crude oil futures yesterday in trading on the new york mercantile exchange + prices for the u.s. benchmark west texas intermediate crude remained locked in a fairly narrow range before ending the session four cents lower at $ N a barrel for december delivery + several analysts and brokers said the petroleum market was ready to rally after two days of price declines from profit-taking + but an early <unk> drop in the dow jones industrial average stopped the crude rally cold + the industrial average recovered to close only N points lower but petroleum futures never shook off the <unk> + most market participants said they were looking to this week 's inventory statistics from the american petroleum institute to give the market some direction + the report is n't generally available until late on <unk> + precious metals futures prices inched upward in mostly lackluster trading + december gold was up $ N an ounce at $ N december silver gained N cents to $ N an ounce + january platinum rose $ N an ounce to $ N + mr. kaiser said there were no fundamental factors moving these markets + he noted that two weeks ago there were rumors of soviet sales of precious metals to finance grain purchases but the sales do n't seem to have materialized + ms. <unk> thought yesterday 's price action reflected weakness in the stock market and the dollar + gold still acts as a haven when uncertainty <unk> in the financial markets as it did yesterday she said + mr. kaiser noted that gold was more than N times the price of silver at the close yesterday which is historically high + the high ratio reflects the fact that silver is still regarded as about a <unk> metal and its price lagging relative to gold says that traders are expecting a weakening economy he said + grains and soybeans prices closed lower after trading in relatively narrow ranges because of strong selling in the cash market and continued favorable harvest weather + the sale to the chinese government of N metric tons of wheat under the government 's export <unk> program was announced after the close of trading monday but the sale was expected and failed to <unk> prices yesterday said dale <unk> a futures analyst with drexel burnham lambert inc. in chicago + as for other export customers the soviet union is n't expected to be back buying u.s. corn in significant amounts until early next year he said + a number of commercial grain users <unk> that opinion yesterday by buying certain corn options for delivery in march indicating to analysts that the commercial companies would use the options to hedge against expected corn sales in next year 's first quarter + cocoa futures at first continued the rally begun on monday but then faltered and closed lower + the december contract opened just under monday 's close triggered some previously placed buy orders just above $ N a metric ton pushing the price to $ N and then encountered heavy selling by traders who buy and sell for their own accounts and by commercial interests + the contract settled at $ N a ton off $ N + robert <unk> senior commodities analyst at kaiser financial group said monday 's rally continued yesterday for only about N minutes after the opening + he said even though there was arbitrage buying in new york because of the weak dollar cocoa fell to <unk> pressure from bearish traders + but he noted that speculators apparently do n't believe there is much more of a decline in store for cocoa + the december contract reached its <unk> low of $ N a ton on oct. N its lifetime high was $ N set in N and its recent high was $ N set in early august + the last time cocoa traded at prices as low as currently was in N + but while further modest declines might be ahead mr. <unk> said it would be difficult to get through resistance levels just above yesterday 's high + citizens first bancorp inc. said it agreed to buy <unk> first financial group inc. a <unk> n.j. bank holding company for about $ N million in cash and stock + citizens first which controls citizens first national bank and is based in <unk> rock n.j. will pay a maximum of N N in cash for the parent of <unk> savings bank and the remainder in convertible preferred stock with a liquidation value of $ N a share + <unk> holders will have the option to request either stock or cash + the convertible preferred will pay dividends at N N and be convertible into shares of citizens first at a rate equal to N N above the average closing price of the stock during a <unk> period prior to the transaction 's completion + the deal requires regulatory and shareholder approval + color systems technology inc. los angeles said its major creditor general electric pension trust agreed to convert $ N million of debt owed into N N of color system 's fully diluted common stock + the agreement also calls for general electric pension a unit of general electric co. to receive as much as N N of color systems ' fully diluted common stock depending on the proceeds from the sale of the <unk> film library and its receivables + general electric pension took control of the <unk> library last month after color systems defaulted on the loan + the agreement depends on color systems ' ability to win similar concessions from other creditors + buddy young president said the company expects to conclude negotiations with other creditors within N days + color systems which <unk> black-and-white film to color <unk> posted a loss of $ N million or $ N a share on revenue of $ N million for the fiscal year ended june N + its stock fell N cents to $ N in american stock exchange composite trading yesterday + next to kohlberg kravis roberts 's <unk> rjr nabisco deal sci television is small <unk> + but the troubles of sci tv are a classic tale of the leveraged buy-out excesses of the 1980s especially the <unk> game + sci tv which expects to release a plan to restructure $ N billion of debt in the next day or so is n't just another lbo that went bad after <unk> on debt though it did do that + the cable and tv station company was an lbo of an lbo a set of assets that were leveraged twice enabling the blue-chip buy-out king henry kravis in N to take more than $ N billion of cash out of the <unk> <unk> + sci tv 's buy-out was an <unk> in the hole for mr. kravis and for investors in kkr partnerships + but it has left holders of sci tv 's junk bonds holding the bag including some <unk> that kkr might need to finance future deals such as kemper financial services first executive columbia savings & loan and prudential insurance co. of america + some junk-holders are said to be considering legal action against kkr or moves to force sci tv into bankruptcy court + and kkr 's majority partner in sci tv 's buy-out <unk> tenn. entrepreneur george gillett also is said to be very unhappy + sci tv 's six stations once were part of storer communications + kkr loaded up the cable and television company with debt in an N buy-out then later sold storer 's cable operations at a fat profit + in N kkr for the second time <unk> debt onto storer 's tv stations selling them for $ N billion to a new entity that was <unk> by kkr and <unk> by gillett corp. which now operates the sci tv stations + in this second lbo kkr with one hand took more than $ N billion of cash out of the tv company 's assets and moved it into the storer cable operations making them more valuable in a N sale + storer also took $ N million of junior sci tv bonds as partial payment for the tv assets + with the other hand kkr put back into sci tv less than N N of the cash it had taken out buying sci tv common and preferred shares + so while kkr today has an estimated $ N million <unk> in <unk> sci tv including equity and debt the lbo firm still is $ N billion ahead on the sci tv buy-out after taking cash up front + on storer as a whole kkr racked up compound annual returns of N N in the three years it owned storer + meanwhile mr. gillett risks losing his entire equity investment of about $ N million in sci tv if the company ca n't be restructured + overall mr. gillett 's holding company gillett holdings is heavily <unk> and except for its <unk> mountain resorts is n't doing very well + with the tv business falling on hard times in recent years analysts say that if sci tv had to be liquidated today it might fetch N N less than in the N buy-out <unk> out most of the company 's junk-holders and its stockholders + meanwhile sci tv can barely pay its cash interest bill and to stay out of bankruptcy court it must soon <unk> a lot of bank loans and junk bonds that have fallen due + sci tv 's grace period for paying its bills is due to expire nov. N + it now is quietly circulating among creditors a preliminary plan to restructure debt + negotiations have started con <unk> but that 's not to say we like this particular offer says wilbur ross of rothschild inc. adviser to sci tv junk-holders + no major player in the sci tv deal will talk publicly + but it 's understood that mr. kravis is disappointed that mr. gillett did n't manage to boost sci tv 's operating profit after the buy-out + mr. kravis apparently thinks sci tv can survive if lenders extend its debt payments until tv stations rise in value again allowing sci tv to sell assets to pay debt + mr. gillett is said to be proud of his operating record he has lifted some stations ' ratings and turned around a detroit station + as for junk-holders they 're <unk> it can be a mistake to take the other side of a trade by kkr + the bonds of sci tv now are being quoted at prices ranging from only five cents to about N cents on the dollar according to <unk> smith & co. in new york which trades <unk> securities + people who have seen sci tv 's restructuring plan say it offers concessions by kkr and gillett corp + they would both give part of their combined $ N million in common equity in sci tv to holders of sci tv 's $ N million of junk bonds as a <unk> to persuade them to accept new bonds that might reduce the value of their claims on the company + but some <unk> sci tv junk-holders say that 's not enough + they contend that sci tv 's equity now is <unk> + they add that it is n't costing kkr anything to give up equity because of its big <unk> cash profit on the buy-out which they think contributed to sci tv 's current problems + kemper the biggest holder of senior sci tv bonds has refused to join the <unk> committee and is said to be reviewing its legal options + to protect their claims some junk-holders want kkr and perhaps mr. gillett to invest new money in sci tv perhaps $ N million or more + one investment banker who is n't involved in the deal says sci tv needs at least $ N million of new equity to survive + junk-holders say they have a stick to beat kkr with the threat of bankruptcy is a legitimate tool to extract money from kkr says one big sci tv holder + this could be the first major bankruptcy-law proceeding for kkr he adds + a big bankruptcy-court case might <unk> kkr 's name and provide new fuel for critics of lbos in washington and elsewhere + but others say junk-holders have nothing to gain by putting sci tv into bankruptcy-law proceedings + while kkr does n't control sci tv which is unusual for a kkr investment it clearly has much deeper pockets than mr. gillett + bankruptcy specialists say mr. kravis set a precedent for putting new money in sour lbos recently when kkr restructured <unk> <unk> furniture doubling kkr 's equity stake + but with <unk> kkr was only trying to salvage its original investment says bankruptcy investor james rubin of <unk> <unk> rubin in new york + by contrast kkr probably has already made all the money it can on sci tv + and people who know mr. kravis say he is n't in a hurry to pour more money into sci tv + rubbermaid inc. reflecting strong earnings growth boosted its quarterly dividend N N to N cents a share from N cents + the maker of household products said the new dividend is payable dec. N to shares of record nov. N + separately the company 's board adopted a proposal to <unk> its N shareholder rights plan further <unk> the company from takeover + rubbermaid officials said they are n't aware of any effort to take over the company but believed the shareholder plan needed to be strengthened + the board has stated repeatedly that rubbermaid should be independent said walter w. williams rubbermaid president + some changes to the plan were minor adjustments but the most significant was an amendment that provides that if any investor holds N N or more of rubbermaid 's voting securities each right held by others would <unk> the holder to buy rubbermaid shares with a market value of twice the right 's exercise price + mr. williams said the exercise price is $ N meaning holders would have the right to buy $ N of rubbermaid stock for half price <unk> the investor 's N N stake + for the third quarter rubbermaid earned $ N million or N cents a share up N N from $ N million or N cents a share a year earlier + sales rose N N to $ N million from $ N million + rubbermaid shares closed yesterday at $ N off N cents in new york stock exchange composite trading + the stock market went on a dizzying ride as ual parent of united airlines once again led shares into a <unk> decline and then an afternoon comeback + at the end of it all the dow jones industrial average closed down N to N + at one point yesterday morning the dow was down N points + new york stock exchange volume was N shares + declining issues <unk> advancers N to N + yesterday 's sell-off and rebound was a powerful reminder that N days after the 190-point plunge on friday the 13th the stock market still has a bad case of nerves + takeover stock speculation and futures-related program trading drove the industrial average through wide ranges + and there is more volatility to come + october 13th left us with a cut and exposed <unk> said jack <unk> technical analyst for bear stearns + people are fearful and sensitive + everybody 's finger is one inch closer to the <unk> + i have never had as many calls as i had this morning + volatility is here to stay + the dow jones industrial average plunged about N points in slightly more than one hour after the opening bell + for many it began to look like a <unk> of oct. N + as stocks and stock-index futures fell a trading limit was hit in the s&p N stock futures pit + under a <unk> crash reform the chicago mercantile exchange would n't permit the december s&p futures to fall further than N points for a half hour + that caused a brief period of panic selling of stocks on the big board + but at a critical moment stock-index arbitrage traders showed their power and control + they <unk> up hundreds of s&p futures when the market needed it most + at about N a.m. edt several big buy orders hit the s&p pit simultaneously lifting the futures up out of the trading limit and eventually into ranges that caused computer-driven program buying of stocks + it is very clear that those buy orders came from people who wanted their franchise protected said one chicago-based futures trader + these guys wanted to do something to show how powerful they are + traders said goldman sachs shearson lehman hutton and salomon brothers were the main force behind the futures buying at the <unk> moment + shearson lehman hutton declined to comment + officials at goldman sachs and salomon brothers were unavailable for comment + as in the oct. N massacre yesterday morning 's drop was triggered by bad news for speculators in ual + a ual statement after the market closed monday indicated that the airline 's board wanted to keep the company independent effectively <unk> hopes of an immediate buy-out + five minutes before the big board opened a preliminary price was <unk> for ual somewhere between N and N a loss of as much as $ N a share from monday 's close + ual finally opened for trading at N a.m. at N down $ N + floor traders said there was a huge crowd around the big board specialist 's post where ual trades + there was a <unk> mass of people said one floor trader + then there was a big liquidation of stock across the board he added + takeover speculators who have already taken a record loss estimated at more than $ N million on ual started selling other stocks as well as s&p futures in an attempt to hedge against a further ual blood <unk> + shortly after the ual opening program traders started selling stocks in the major market index and s&p N index + the <unk> mmi <unk> the dow jones industrial average + by N a.m. the dow was down N + all <unk> in the mmi except exxon general motors and sears were down $ N to $ N + at N when the s&p N december futures contract <unk> to a <unk> loss under the force of sell programs s&p futures trading was halted and program trades on the big board were <unk> into a special computer that <unk> for order imbalances + under the rules adopted by the chicago mercantile exchange the futures contract can not drop below the limit but buyers can purchase futures + at this point the dow industrials were down N points and falling + the trading halt in the s&p N futures <unk> selling and confusion many traders maintain + but as the <unk> began to spread through the s&p pit the big brokerage firms came in and bought futures aggressively + it was <unk> said one futures trader + in five minutes the dow industrials climbed almost N points + the big futures buying triggered stock-index buy programs that eventually trimmed the dow 's loss to N points by N a.m + traders said the futures buying was <unk> calculated by program traders + these firms sold stock into the big morning decline but seeing the <unk> of the market 's drop held back on their offsetting purchases of futures until the s&p futures hit the trading limit + then they completed the other side of the trade by buying futures which abruptly halted the stock market 's decline as traders began to buy stocks + from then on the dow industrials held at a loss of N to N points + then in <unk> trading <unk> buy orders for ual hit the market including a <unk> order through bear stearns that seemed to spark ual 's late price surge + almost simultaneously painewebber began a very visible buy program for dozens of stocks + the combined buying rallied the dow into a small gain before closing at a slight loss + some institutional traders loved the wild ride + this is fun asserted susan del <unk> head equity trader at travelers investment management co + she said she used the market 's wild swings to buy shares <unk> on the sell-off + on the comeback ms. del <unk> <unk> shares she has been aiming to get rid of + but traders who risk money handling big blocks of stock were shaken + this market is eating away my youth said chung <unk> head equity trader at kleinwort benson north america inc + credibility sounds <unk> + but i think we are losing credibility because when the market does this it does n't present itself as a rational investment + but if you <unk> all this it is a beautiful market for investment still + traders attributed rallies in a number of stocks to a japanese buy program that painewebber carried out as part of a shift in portfolio strategy according to dow jones professional investor report + dow jones climbed N N to N on very heavy volume of N shares + analysts said a big japanese buy order was behind the rise + a dow jones spokesman said there were no corporate developments that would account for the activity + other issues said to be included in the buy program were procter & gamble which rose N N to N N atlantic richfield which gained N to N N and rockwell international which jumped N N to N N + painewebber declined to comment + ual finished at N off N N + other airline stocks fell in response to the ual board 's decision to remain independent for now including usair group which separately reported a third-quarter loss of $ N a share compared with a year-ago profit + usair fell N N to N + amr the parent of american airlines fell N N to N N on N million shares delta air lines lost N N to N southwest airlines slid N to N N and <unk> airlines dropped N to N N + texas air which owns continental and eastern airlines lost N to N N on the american stock exchange + metals stocks also were especially weak as concerns about the earnings outlook for cyclical companies weighed on the group + aluminum co. of america dropped N N to N N phelps dodge fell N to N N asarco lost N N to N N reynolds metals slid N N to N N <unk> dropped N N to N N and <unk> minerals skidded N to N N + <unk> <unk> was an exception as it gained N N to N on two million shares + goodyear tire & rubber tumbled N N to N N + its third-quarter earnings were higher than a year ago but fell short of expectations + other stocks in the dow industrials that failed to benefit from the market 's rebound included united technologies which dropped N to N N and <unk> <unk> steel which fell N to N N + bankamerica dropped N N to N N on N million shares amid rumors that the earthquake last week in the san francisco area had caused structural damage to its headquarters building + the company denied the rumors and noted that it does n't own the building + stocks of <unk> thrifts also were hard hit + great western financial lost N N to N N on N million shares golden west financial dropped N N to N N and h.f. ahmanson dipped N to N N + homefed plunged N N to N N its third-quarter earnings were down from a year ago + golden valley microwave foods skidded N N to N N after warning that its fourth-quarter results could be hurt by some fairly large international marketing expenses + <unk> trading swelled volume in two issues security pacific which fell N to N N and led the big board 's most <unk> list on composite volume of N million shares and <unk> industries which lost N to N N on N million shares + both stocks have dividend yields of about N N and will go ex-dividend wednesday + kellogg surged N N to N + donaldson lufkin & jenrette placed the stock on its list of recommended issues + the company noted that its third-quarter results should be released later this week or early next week + vista chemical rose N N to N N after bear stearns added the stock to the firm 's buy list citing recent price weakness + georgia gulf another producer of commodity chemicals advanced N to N N dallas investor harold simmons who holds about N N of its shares said he has n't raised his stake + norfolk southern went up N N to N N + the company 's board approved the repurchase of up to N million common shares or about N N of its shares outstanding through the end of N + <unk> freight climbed N N to N N + its third-quarter earnings more than doubled from a year earlier and exceeded analysts ' expectations + john <unk> which will replace american medical international on the s&p N following wednesday 's close gained N to N N + the amex market value index fell N to N + volume totaled N shares + <unk> co. raised its quarterly dividend N N to N cents a share from N cents payable jan. N N to shares of record dec. N N + the action increases the annual dividend to $ N a share from $ N + this is the <unk> year in which the washington media company has increased dividends + <unk> 's third-quarter earnings rose N N to N cents a share from N cents in the year-ago period + sales rose N N to $ N million from $ N million + <unk> has N million shares outstanding + fireman 's fund corp. said third-quarter net income plunged N N to $ N million from last year 's $ N million or N cents a share because of <unk> of hurricane hugo and increased reserves for legal expenses + payout of preferred dividends resulted in a net loss of five cents a share in the most recent quarter + revenue edged up N N to $ N million from $ N million in last year 's third quarter + in new york stock exchange composite trading fireman 's closed at $ N a share down N cents + impact of the oct. N san francisco earthquake which will be recorded in the fourth quarter is n't expected to exceed $ N million after taxes the company added + for the nine months the insurance company said net fell N N to $ N million or $ N a share from $ N million or $ N a share the previous year + revenue slid N N to $ N billion from $ N billion a year earlier + fireman 's fund <unk> subsidiaries reported a N N combined underwriting ratio for the nine months up from N N for the year-ago period + hurricane hugo accounted for about $ N million in pretax third-quarter losses net of reinsurance <unk> + the company said there was an additional increase in loss and <unk> reserves of $ N million reflecting higher than expected development in claims legal expenses from to prior periods + for the third quarter net premiums were $ N million up N N from $ N million in last year 's quarter because of the expiration of the national <unk> quota share reinsurance agreement + net premiums written through sept. N fell N N to $ N billion from $ N billion a year ago because of the writing of fewer policies at flat prices the company said + third-quarter and nine-month results do n't include any provision for premium returns that could be ordered by the california department of insurance under proposition N + fireman 's fund said it has applied for an exemption from these rate <unk> and plans to defend its filing in hearings before the department + control data corp. said it is offering to purchase the $ N million amount of its N N N senior notes due june N N at par plus accrued interest to the dec. N purchase date + the minneapolis computer systems and services concern said the offer is required under the senior note <unk> as a result of control data 's recent sale of its disk drive subsidiary <unk> to seagate technology inc + child 's game + there was very slow play on the market today they were selling and buying by <unk> instead of trading like bears and bulls they behaved like cubs and <unk> + george o. <unk> + <unk> + i 've learned one thing from candidates a technique so <unk> done if a question ca n't be answered strongly answer an <unk> one + <unk> <unk> + <unk> + we need to get a space platform set up soon just in case we want to step out for a breath of fresh air + <unk> ball + after being <unk> by a volatile stock market treasury bonds closed higher + but junk bonds took more hits + early in the day bond dealers said trading volume was heavy as large institutional investors scrambled to buy long-term treasury bonds on speculation that the stock market 's volatility would lead to a <unk> rally + that happens when nervous stock investors dump equities and buy treasurys which are higher in quality and thus considered safe + some retail accounts such as commercial banks and pension funds wanted to get on the <unk> before it was too late said sung won <unk> chief economist at <unk> corp. minneapolis + at one point the dow jones industrial average fell about N points on news that ual corp. decided to remain independent + in response treasury prices soared N N points or about $ N for each $ N face amount + but the gains in treasury bonds were <unk> as stocks staged a partial recovery + the industrial average ended at N down N points + economists said the bond market 's strength also is a sign that investors expect the federal reserve to cut interest rates amid growing evidence that the economy is slowing + while they do n't expect the fed to move right away they say the case for lower rates is building + yesterday for example the commerce department reported that new orders for durable goods fell N N while the nation 's auto makers reported lackluster mid-october sales + the treasury 's 30-year bond ended over N point higher + municipal mortgage-backed and investment-grade corporate bonds rose N to N point + but high-yield high-risk bonds fell N to N point with the stock market early in the session and never recovered + according to a trader at drexel burnham lambert inc. the hardest hit junk bonds were those issued by rjr holdings capital corp. which are the <unk> to sell + rjr 's N N bonds due N fell N N points + trading activity in the junk market was extremely light as dealers could n't find enough buyers to match sellers + while the stock market was falling most junk bond holders were just watching it not knowing what to do said paul <unk> director of fixed-income securities at oppenheimer management corp + it was like driving down the highway watching a <unk> + everybody was <unk> + adding to the junk market 's jitters were reports that donaldson lufkin & jenrette securities corp. is having trouble <unk> a $ N billion offering for tw food services inc. and will postpone or even cancel the issue + tw is the largest franchisee of <unk> 's a fast-food restaurant and operates several other food chains + donaldson lufkin would n't comment + credit analysts said investors are nervous about the issue because they say the company 's ability to meet debt payments is dependent on too many <unk> including the sale of assets and the need to mortgage property to retire some existing debt + also the tw offering includes <unk> and <unk> securities which are currently unpopular + meanwhile investors turned a cold shoulder to the treasury 's sale of $ N billion of new two-year notes yesterday + it 's not too surprising that the auction was sloppy given the volatility in the bond market because of stocks said robert t. <unk> a senior vice president at <unk> bank ltd + people are looking past supply to lower interest rates but they 're also worried about being <unk> by the volatility in the stock market + the new two-year notes were priced with an average yield of N N + that was higher than the N N to N N average yield that traders had expected + in when-issued trading the notes were quoted at a price to yield N N + sluggish demand was also <unk> by the weak <unk> <unk> ratio which was lower than the average <unk> ratio at the last N similar auctions + the ratio which reflects the number of bids the treasury receives for each bid accepted is used to gauge investor demand + dealers said players <unk> away from the note sale because they were concerned that prices at the time of the auction might erode if the stock market staged a recovery which in fact did happen + individual and japanese participation in the auction was disappointing according to dealers + interest by japanese investors was limited said michael <unk> chief economist at daiwa securities america inc + they are typically not active in two-year note auctions but today 's participation could be viewed as <unk> + however mr. <unk> added that the japanese generally have a positive view of the u.s. bond market because of expectations that the dollar will remain strong and interest rates will decline + he said possibly they 're waiting to buy at the quarterly refunding of government debt to be held next month by the treasury + a trader at a japanese firm estimated that the japanese purchased no more than N N of the two-year notes + treasury agency securities + today investors will focus on the long-awaited auction of $ N billion of 30-year bonds by resolution funding corp + the initial bond offering by the new government agency which was created to help rescue the nation 's troubled thrifts is n't expected to see robust demand + a small yield premium over comparable treasurys and a lack of liquidity is <unk> dealers ' efforts to drum up interest in the so-called bailout bonds + in when-issued trading the refcorp bonds were quoted at a price to yield N N + yesterday the benchmark 30-year bond was quoted late at N N to yield N N compared with N N to yield N N on monday + the latest 10-year treasury was quoted at N N to yield N N compared with N N to yield N N + short-term rates were unchanged to slightly lower + the discount rate on three-month treasury bills was quoted at N N for a bond-equivalent yield of N N while the rate on six-month treasury bills was quoted at N N for a yield of N N + rates are determined by the difference between the purchase price and face value + thus higher bidding narrows the investor 's return while lower bidding widens it + corporate issues + several blue-chip companies tapped the new-issue market yesterday to take advantage of falling interest rates + three of the largest offerings by exxon capital corp. xerox corp. and citicorp were underwritten by groups led by salomon brothers inc + exxon capital <unk> to be a potential debt issuer offered $ N million of 10-year notes priced to yield N N + citicorp issued $ N million of seven-year notes priced to yield N N and xerox priced $ N million of <unk> notes to yield N N + meanwhile international business machines corp. <unk> the way for a visit to the credit markets by filing a shelf registration with the securities and exchange commission for $ N million in new debt + this is in addition to ibm 's existing shelf registration under which $ N million in debt securities are available for issuance + in secondary trading investment-grade corporate bonds ended N to N higher + municipals + actively traded municipal bonds ended N to N point higher in brisk trading despite a flood of new supply + new jersey turnpike authority 's N N issue of N finished N point stronger at N N bid to yield N N + traders said municipals were <unk> by influences including the climb in treasury issue prices + also municipal bonds <unk> buying because the stock market remains <unk> traders contended + mainly though it was a favorable outlook for yesterday 's new supply that <unk> up municipals some traders said + among the new issues was massachusetts 's $ N million of general obligation bonds + the bonds were won by a goldman sachs & co. group with a true interest cost of N N + they were priced to yield from N N in N to N N in N + the massachusetts deal had an <unk> balance of $ N million in late trading the underwriter said + mortgage asset-backed securities + mortgage securities gained N to N point after a hectic session with government national mortgage association N N securities as the <unk> issue + the ginnie mae issue rose amid talk of large purchases of the securities by institutional investors + the derivative markets remained active as one new issue was priced and talk circulated about more offerings in the next day or two + the federal home loan mortgage corp. issued a $ N million real estate mortgage investment <unk> backed by its N N N securities + in the asset-backed market a big offering of ford motor credit corp <unk> securities was increased in size after strong institutional demand + the deal by the ford motor co. unit priced monday was increased to $ N billion from $ N billion + among major <unk> issues ginnie mae N N securities for november delivery ended at N N up N after <unk> an early high of N N N N securities were at N N up N N N N securities at N N up N and N N securities at N N up N + freddie mac N N securities were at N N up N + the ginnie mae N N issue was yielding N N to a 12-year average life assumption as the spread above the treasury 10-year note held at N percentage points + foreign bonds + the eurodollar bond market <unk> to life late in the european trading session after the dow jones industrial average tumbled + eurodollar bonds are often issued by foreign corporations but interest and principal are paid in dollars + the bonds ended about N point higher yesterday + prices of european government bonds also rose as u.s. stocks declined + west germany 's N N issue due october N rose N point to N to yield N N while the N N N issue due july N rose N to N to yield N N + britain 's N N N treasury bond due N rose N to N N to yield N N while the N N notes due N rose N to N N to yield N N + in japan government bond prices fell + the no. N N N bond due N ended on brokers ' screens at N down N point to yield N N + <unk> bancorp inc. <unk> n.y. said it increased its regular quarterly dividend N N to N cents a share from N cents + it is payable dec. N to stock of record nov. N + the move was made because of the bank-holding company 's increased profitability officials said + in the third quarter <unk> earned $ N million up from $ N million a year earlier + in national over-the-counter trading yesterday <unk> closed at $ N up N cents + <unk> has N million shares outstanding + <unk> surgical co. 's board said that it has removed thomas r. <unk> as president and chief executive officer and that john r. wolf formerly executive vice president sales and marketing has been named president and chief executive officer + mr. <unk> has been involved in a dispute with the board since august when he ousted all the directors + later they said they fired him and two directors attempted to place the company under bankruptcy-law protection + a federal judge turned down the chapter N petition + the company 's latest announcement said mr. <unk> will remain a director of <unk> a maker of products for <unk> surgery + mr. wolf and other members of the board declined to comment on the announcement + mr. <unk> could n't be reached + the <unk> board also said that john r. ford resigned as a director and that mr. wolf was named a member of the board + east <unk> krenz warned against further pro-democracy protests + after the legislature confirmed him as the communist party leader krenz said demonstrations to demand democratic freedoms could cause a worsening of the situation or confrontation + he also <unk> east germany 's <unk> to communist <unk> + but as many as N people marched in east berlin after the speech to protest his election + during the balloting N members of the <unk> parliament voted against krenz a move considered unprecedented in the country 's <unk> history + officials in east berlin responding to complaints from opposition groups admitted police used excessive force in <unk> protesters this month + the iran-contra judge agreed to allow <unk> to subpoena the personal papers of <unk> reagan ruling that there was sufficient evidence that the data would be important to the defense + but the judge denied a request by the former national security adviser who faces five criminal charges to seek documents from bush + san francisco bay area officials said nine people remain missing in the aftermath of last week 's earthquake + the death toll rose to N + the house meanwhile approved $ N billion to aid in the recovery from the temblor and from hurricane hugo as state legislators moved toward a temporary <unk> increase + u.s. officials expressed skepticism over an israeli effort to show the plo continues to practice terrorism + israel provided the state department with a list of recent alleged terrorist incidents attributed to forces controlled by arafat but the u.s. said it was n't satisfied that the incidents <unk> terrorism + tv <unk> jim bakker was sentenced to N years in prison and fined $ N for <unk> <unk> of his <unk> ministry + bakker who was immediately taken into custody was convicted oct. N by a federal court jury in charlotte n.c. of fraud and conspiracy for <unk> more than $ N million of ministry funds for personal use + lawmakers in moscow voted to deny the communist party its N guaranteed seats in the soviet congress meaning gorbachev and other aides might have to face voters + in warsaw shevardnadze held his first talks with the <unk> government and vowed to maintain fuel supplies + poland 's premier is to visit moscow next month + the arab league pledged an accord for a complete syrian troop pullout from lebanon where about N people marched to the headquarters of christian leader aoun to support his rejection of a peace plan approved sunday by lebanon 's legislature + the plan lacked a withdrawal timetable + <unk> <unk> renewed an offer to trade their <unk> in lebanon for at least N <unk> <unk> <unk> jailed in kuwait + the statement by <unk> <unk> which holds at least two u.s. <unk> was accompanied by a photograph of associated press <unk> terry anderson longest held of N western <unk> + the treasury department said s&ls reject blacks for mortgage loans twice as often as they reject whites + the department 's office of thrift supervision said that does n't necessarily mean thrifts are <unk> but conceded that it does n't have data about applicants to determine why blacks are rejected more often + emergency crews searched through the <unk> rubble of a phillips petroleum co. plastics plant near pasadena texas where a series of explosions monday killed at least two people and injured N + company officials said N workers were missing and presumed dead + safety authorities did n't immediately know the cause of the <unk> + nato defense ministers opened a two-day meeting in portugal to assess the alliance 's <unk> needs amid reduced <unk> <unk> + the ministers ordered a study on the strategic role of nuclear arms in western europe once soviet conventional weapons are reduced in the east bloc + the justice department scrambled to play down the significance of revised guidelines concerning prosecutions under the federal racketeering law + the guidelines which discourage prosecutors from seeking court orders <unk> the assets of certain racketeering defendants prior to trial were first disclosed this week + died s. clark <unk> N <unk> and chief executive officer of bank of america <unk> saturday in <unk> calif + stock prices swung wildly as the market reacted to an initial plunge by ual shares followed by a sharp rebound in the afternoon + the dow jones industrials down over N points in the morning closed off N at N + bond prices surged in reaction to the sell-off in stocks then eased slightly during the afternoon recovery + the dollar finished lower + ual 's stock regained most of an early loss amid speculation one or more investors may challenge the airline 's decision to stay independent + the stock closed down $ N at $ N after plunging $ N to $ N + ford may seek all of jaguar setting the stage for a possible bidding war with gm + jaguar has been discussing an alliance with gm but ford 's move may <unk> the talks + car and truck sales slid N N in mid-october as u.s. manufacturers paid the price for heavy incentives earlier in the year + general motors continued to be hardest hit + durable goods orders slipped N N in september reflecting weakening auto demand after a <unk> of orders for new N models + excluding transportation items orders rose N N + norfolk southern 's board approved a buy-back of up to N million shares valued at over $ N billion + the repurchase coupled with an earlier <unk> will reduce the firm 's shares outstanding by over N N + ps new hampshire received a sweetened $ N billion offer from northeast utilities likely spurring a new round of bidding for the utility + ge executives were accused by u.s. prosecutors of providing misleading and false data to the pentagon in N to cover up longstanding fraudulent billing practices + texaco said profit rose N N in the quarter partly due to a massive restructuring + sun posted a gain + mobil shell and chevron had declines + mobil is preparing to slash its work force in the u.s. possibly as soon as next month sources said + sears posted a N N drop in third-quarter profit as u.s. retail operations recorded the first loss in over five years + the results show sears is struggling to attract shoppers + digital equipment announced its first mainframe computers targeting ibm 's largest market and heating up the industry 's biggest <unk> + cray research expects supercomputer sales to be flat next year the latest in a series of negative announcements by the company + short interest increased N N in the nasdaq over-the-counter market for the month ended oct. N + salomon posted an unexpectedly big gain in quarterly earnings aided by its securities trading and investment banking activities + procter & gamble 's profit surged N N in its latest fiscal quarter aided by a gain from a legal settlement and continued growth overseas + goodyear 's profit rose N N in the quarter buoyed by improved operating results in its tire business + markets + stocks volume N shares + dow jones industrials N off N transportation N off N utilities N off N + bonds shearson lehman hutton treasury index N up + commodities dow jones futures index N off N spot index N off N + dollar N yen off N N marks off N + genetic <unk> spotted in <unk> embryo + researchers <unk> a genetic <unk> in a <unk> mouse embryo in an experiment directly applicable to humans + <unk> <unk> of genetic defects as early as the sixth week of pregnancy is increasingly common today + but the mouse experiment at a medical research council laboratory in london shows genetic defects can be detected three days after conception using a new <unk> <unk> technique + the experiment applicable to many genetic disorders involved <unk> a severe blood <unk> resulting from a missing <unk> gene + it 's an inherited human <unk> that 's been <unk> in mice + in the experiment mice with the defective gene were <unk> + three days later before the new embryo had become <unk> in the <unk> it was <unk> out of the mother mouse + the embryo had <unk> only to a <unk> of eight identical cells + one cell was <unk> out and its dna <unk> + using the new technique developed by <unk> corp. called the <unk> chain reaction the scientists rapidly made millions of copies of the section of dna that ordinarily contains the <unk> gene providing enough copies to test + a genetic probe showed the <unk> gene was missing the researchers report in the medical journal <unk> + in the report two <unk> <unk> suggest such embryo <unk> can be used by couples at high risk of passing a genetic <unk> to a child + for example <unk> couples who have the woman 's eggs <unk> in the test tube usually have several eggs <unk> at a time + when the <unk> cells divide to eight cells a single cell from each embryo can be tested for genetic defects + a healthy embryo can be picked for <unk> and defective ones discarded + or in other couples the embryo could be temporarily taken out and tested three days after conception and returned if healthy or discarded if not + yeast adapted to make <unk> drugs + an oil company finds a sideline in the <unk> world of yeast + in the early 1970s when the world food crisis was a major worry phillips petroleum co. like several other big companies began developing <unk> protein <unk> protein made by <unk> feeding on <unk> materials + phillips found and improved a yeast <unk> <unk> which made protein from natural <unk> alcohol + it also could convert <unk> from farm <unk> into <unk> protein + <unk> protein never <unk> out and most companies abandoned such research + but phillips <unk> calling in scientists from the <unk> institute + they 've now adapted the yeast to making genetically engineered drugs + like the bacteria used by genetic engineers the yeast can take in human genes and <unk> out human proteins for medical use + but the yeast genetic <unk> is more like that of animals than the <unk> genetic <unk> + thus the proteins from the yeast are <unk> more like human proteins than those from bacteria + the oil company claims its yeast system also is better than bacteria at <unk> production of genetically engineered drugs + chiron corp. an <unk> calif. biotechnology firm is seeing if the phillips yeast can be used to make its genetically engineered human proteins + <unk> inside arteries from outside the body + <unk> blood vessels without <unk> <unk> into the body may come out of research at at&t bell laboratories + strokes heart attacks leg <unk> <unk> <unk> and other problems stem from <unk> of the arteries by <unk> deposits + at present doctors can see how badly an artery is <unk> only by <unk> a thin <unk> into the artery and <unk> a <unk> that makes the arteries visible on <unk> + a <unk> method is being <unk> by <unk> lynn <unk> at the at&t unit + it relies on the fact that certain atoms give off <unk> signals when <unk> to an intense magnetic field + it 's the same phenomenon used in the new <unk> magnetic <unk> <unk> <unk> being used in hospitals in place of <unk> <unk> + in the bell labs experiments an <unk> of machine <unk> with the <unk> via an <unk> rapidly <unk> a magnetic field on and off as blood passes a certain point in a vessel + the rapidly <unk> return signals from excited <unk> atoms in the blood give a <unk> movie of the <unk> vessel like the <unk> seen in <unk> <unk> when a <unk> light is <unk> + the scientists have <unk> on the tiny neck arteries of <unk> + they 've been able to measure the <unk> movements of the artery wall as the beating heart raises and <unk> the pressure of the flowing blood a first for such tiny blood vessels they report in nature a scientific journal + they now are <unk> with measuring blood flow + the ultimate hope is that the technique could identify <unk> vessels + odds and ends + tests on <unk> <unk> from chile indicate ancient wood fires did n't produce <unk> or <unk> <unk> a theory the two <unk> today are coming from wood burning general electric co. reports in environmental science & technology magazine + almost N N of <unk> men have an <unk> sense of <unk> vs. fewer than N N of <unk> women reports the american journal of <unk> + the justice department said it filed a lawsuit seeking more than $ N million from a meredith corp. unit on charges that the company <unk> the government on a contract to provide relocation services for federal employees + the suit filed in federal trial court in des <unk> iowa where meredith is based alleges that the diversified media company 's relocation unit <unk> the government by <unk> the value of government employees ' homes + the government contract required meredith relocation corp. to purchase employees ' homes based on independent <unk> + the justice department alleges that the company engaged in various forms of <unk> with the goal of reducing the <unk> value of employees ' homes + in the suit the department seeks to recover $ N million in costs incurred when the government terminated its contract with meredith relocation and sought other contracts to replace it + the department also said it seeks three times the government 's damages which are <unk> <unk> plus penalties + officials with meredith did n't have any immediate comment on the suit + lloyd 's of london said it plans to <unk> down on the ability of underwriting syndicates to leave their annual accounts open beyond the <unk> three years + underwriting syndicates at lloyd 's the world 's largest insurance market generally do n't close their accounts for three years to allow for the filing of claims and litigation + when such claims and litigation extend beyond the period the syndicates can extend their accounting deadlines + lloyd 's said there are currently N open account years involving N of the market 's roughly N syndicates + the <unk> accounting practice is widely recognized within lloyd 's as of serious concern to the N member investors who underwrite insurance at lloyd 's in return for premium and investment income lloyd 's said + the procedure causes great uncertainty because an investor ca n't be sure of his or her individual liability lloyd 's said + as a result the insurance market plans new measures to restrict the ability of syndicate officials to leave years open + lloyd 's said it expects to enact new rules <unk> the changes by year end + under the new rules the officials will have to secure additional information and reports from <unk> including an assessment of whether officials have acted reasonably + in addition officials will have to get quotes for certain reinsurance contracts and obtain approvals from other syndicate directors + computer associates international inc. reported earnings for the second quarter ended sept. N plummeted N N primarily because of the acquisition of <unk> software inc + the nation 's largest software company earned $ N million or five cents a share compared with $ N million or N cents a share a year earlier + revenue rose N N to $ N million from $ N million + the drop in earnings had been anticipated by most wall street analysts but the results were reported after the market closed + computer associates closed at $ N down N cents in composite trading on the new york stock exchange + anthony wang president attributed the drop to the disruption of the company 's business resulting from the prolonged process of acquiring <unk> + the acquisition was completed in september + in august the company warned investors that the acquisition was being delayed and many customers were holding off on purchase decisions until the takeover was completed + the delays mainly affected sales of data base management products a core area for both computer associates and <unk> as well as sales of other products as part of package sales + residents of this city soon will be seeing ads urging them to visit cleveland 's <unk> museum lake view cemetery + despite such famous tenants as oil <unk> john d. rockefeller lake view cemetery has fallen on hard times + so the inner-city <unk> ground is trying to <unk> itself with a television advertising campaign + the ads <unk> the <unk> of some of lake view 's residents + a spot <unk> bill white the inventor of <unk> gum shows a woman trying to <unk> her <unk> <unk> from a <unk> of gum + another focuses on charles <unk> the first person to light a city <unk> + it shows a boy <unk> rocks at a street <unk> + street lights the ad points out helped <unk> the arm of many a <unk> baseball player + cemetery officials hope the ads which will begin airing next month will not only draw visitors but bolster <unk> and <unk> fund contributions + lake view had an operating deficit last year and has a poor reputation as an <unk> and <unk> cemetery + the private <unk> cemetery has had trouble competing against its <unk> counterparts which use direct mail and other advertising to sell lots + we do n't want to be known as <unk> <unk> says william garrison lake view 's president + we want people to think of lake view as an historical park and educational experience + a <unk> place to come and spend a few hours + not all of the cemetery 's <unk> tenants lend themselves to the promotional job at hand however + for example president james a. <unk> is <unk> here the victim of an assassination in N + mr. garrison notes however that the <unk> <unk> is one of the nation 's premier examples of <unk> architecture + mr. rockefeller buried beneath a <unk> <unk> <unk> did n't seem right for an ad either + the oil <unk> who spent his later years passing out <unk> to counter his <unk> image is n't <unk> amusing says barry <unk> creative director at <unk> canton ohio which is producing the ads + but there are plenty of other promising prospects at lake view <unk> believe ernest ball for instance who wrote when irish eyes are smiling and <unk> morgan the inventor of the gas <unk> and the <unk> traffic light + <unk> <unk> shares made a debut like snow white yesterday while most of the london stock market looked like it had <unk> the evil queen 's <unk> apple + in its first day of when-issued trading here <unk> disney soared like <unk> to close at N pence $ N up N N from its <unk> offering price + the overall london market following wall street 's early <unk> took a late beating + the financial times-stock exchange 100-share index plummeted N points to close at N + traders credited <unk> disney 's share performance to the tremendous <unk> of the project that the shares are <unk> to help finance walt disney co. 's <unk> theme park N miles east of paris + the park is slated to open in N + the issue was very <unk> disney is such a well-known you can say world-wide name said <unk> <unk> head trader of european equities at kleinwort benson ltd. which is making a market in the issue + mr. <unk> estimated that the issue 's london debut was accompanied by very very heavy turnover between five million and six million shares + most of the buying was institutional he added + official trading in the shares will start in london paris and brussels on nov. N when the <unk> <unk> offering valued at the equivalent of nearly $ N billion comes to market in the european community + u.s. investors will be permitted to buy the shares from ec investors N days later + because of the interest connected with the issue the london exchange took the unusual step of letting traders establish an officially <unk> when-issued market + a volatile <unk> gray market in the shares has been operating in paris for about two weeks + in contrast to the london performance <unk> disney there closed down three francs yesterday at N N francs $ N bid but still about N N over the <unk> offering price + a lot of people are getting hurt on this <unk> <unk> cautioned <unk> <unk> a london-based salomon brothers international ltd. trader who makes a market in <unk> <unk> disney shares + there should be no great rush for investors to buy this + a lot of big european banks mostly french and swiss <unk> accounts have been buying the stock just to <unk> it for a quick profit he said + albert fried jr. a <unk> director and holder of a N N stake in the company was named chairman of this maker of products for the construction equipment material handling and railroad industries + he succeeds <unk> white jr. N who resigned but continues as a director + mr. fried also is the managing partner of albert fried & co + ford motor co. <unk> its battle with general motors corp. over jaguar plc by saying it is prepared to make a bid for all of the british auto maker when restrictions on its <unk> are lifted + the statement was part of a ford filing with the u.s. securities and exchange commission + ford did n't say how much it might offer for jaguar or when + the british government currently <unk> any outside investor from holding more than N N of the company 's shares without permission until dec. N + but with its stake in jaguar which it raised yesterday to N N ford could <unk> a special jaguar shareholders ' meeting and urge holders to vote to drop the restriction sooner + a successful vote would put pressure on the british government to lift the restriction + we have not made that decision to seek a jaguar special shareholders ' meeting said <unk> <unk> a ford spokesman in london + he emphasized that the car maker only would bid for all of jaguar under the right circumstances and said those circumstances are n't right or possible at the moment + last month ford announced plans to acquire as much as N N of jaguar + since then jaguar officials have confirmed that they are discussing an alliance with gm and said last week that they hoped to reach an agreement within a month + analysts have been expecting a <unk> pact that would give the u.s. car maker an eventual N N stake in the british company and create joint ventures that would produce an <unk> range of cars + but the specter of ford eventually launching a <unk> bid could <unk> the <unk> talks + jaguar seems to be losing interest in giving gm a minority stake said one individual close to the talks adding it would n't surprise me if jaguar executives want to wait and see what the color of that ford bid is first + he predicted ford officials will meet with jaguar executives in the next week to <unk> their proposed offer + sir john <unk> jaguar 's chairman so far has refused to meet with ford officials but he is believed to be willing to consider a specific bid proposal + as for gm its <unk> position has to be a full bid itself said stephen reitman european <unk> analyst at london brokers <unk> & drew + a ford takeover of jaguar would have such implications for the balance of power in the 1990s that general motors ca n't afford to step aside + they will have to throw their hat in the ring + a gm spokesman yesterday reiterated the company 's interest in acquiring a minority stake to help jaguar remain independent + a pitched battle could mean jaguar would fetch # N $ N a share or about # N billion $ N billion several analysts believe + the prospect of such a takeover fight has sent jaguar shares soaring in recent weeks + u.s. takeover-stock speculators now own an estimated N N of jaguar shares + in a declining london stock market yesterday jaguar shares were down four pence from monday in late trading at N pence $ N a share + in the u.s. jaguar 's american depositary receipts rose N cents in over-the-counter trading to $ N + both ford and gm badly need a luxury brand to combat new competition from the japanese in the european and u.s. markets + and financially strapped jaguar has spent over a year looking for a rich uncle to provide cash and technological know-how + the company has expressed a preference for gm over ford because gm has promised it would keep jaguar independent + ford 's need to acquire some or all of jaguar became more <unk> last week when it abandoned a four-year effort to market its <unk> merkur scorpio sedan as a european luxury import in the u.s. + then last friday ford 's talks about a possible alliance with saab-scania ab of sweden collapsed + gm 's interest in jaguar reflects a desire to help diversify the u.s. company 's products in the growing luxury-car segment of the market + its <unk> line has a solid image and a recent string of highly successful new models but it lacks jaguar 's <unk> + gm officials also see a lot of potential in <unk> jaguar 's cars to the technological know-how of group lotus plc a british engineering and specialty car maker gm bought in N + texaco inc. reported an N N increase in third-quarter earnings which it attributed partly to the company 's massive restructuring after it emerged from bankruptcy-law proceedings N months ago + sun co. also reported higher earnings + meanwhile like many other oil companies hurt by <unk> <unk> businesses mobil corp. shell oil co. and chevron corp. reported lower quarterly earnings + texaco + texaco 's exploration and production earnings improved as a result of its streamlining of those operations as it sold many of its marginal producing properties over the past N months + an increase in production at some major oil fields in the north sea which had been knocked out by an explosion in july N also aided results + the sale of a portion of refining and marketing operations to saudi arabia helped alleviate the decline in earnings from that business + the company has been completely revamped said frank <unk> analyst for prudential-bache securities inc + third-quarter net income at texaco rose to $ N million from $ N million last year + revenue declined N N to $ N billion from $ N billion + per-share earnings declined to $ N a share from $ N a share largely because of N million additional shares issued to retire $ N billion of debt + per-share earnings also shrank because of dividends on a new series of preferred stock + sun sun co. 's net income climbed N N to $ N million or N cents a share from $ N million or N cents a share + revenue increased N N to $ N billion from $ N billion + sun said some of the growth reflects higher earnings in the oil <unk> operation of <unk> a <unk> canadian subsidiary + chairman robert <unk> jr. said the synthetic crude oil production from the facility rose even as the price for that oil increased + overseas exploration and production results also improved because of additional output from the north sea <unk> field a portion of which was acquired by sun earlier this year + results declined however in sun 's refining and marketing and coal businesses + shell oil + profits of shell a subsidiary of the royal <unk> group tumbled $ N million or N N to $ N million despite a gain of $ N million from an insurance settlement + president frank <unk> attributed the decline to lower natural gas prices which <unk> higher earnings from the crude oil sector of shell 's exploration and production operation + <unk> away some of the gain in that unit was a decline in u.s. oil production to N barrels of oil a day during the quarter from N barrels a day last year + shell 's chemical earnings fell by $ N million to $ N million reflecting lower margins and less demand for commodity chemicals + mobil + net income at mobil corp. slipped N N to $ N million or $ N a share from $ N million or $ N a share + revenue declined $ N million to $ N billion + earnings included a one-time gain of $ N million on a property transaction in hong kong + exploration and production profits slumped $ N million due to a provision for restructuring costs + the restructuring will take place over a two-year period and will involve the transfer and <unk> of employees in u.s. operations to reduce costs and focus efforts in other areas + last year third-quarter earnings included a $ N million gain from foreign tax rate changes and a loss from a $ N million write-off of reserves + chevron + chevron 's net income fell N N to $ N million or $ N a share from $ N million or $ N a share + results included a $ N million gain from the sale of rights from chevron 's investment in <unk> inc. and a loss of $ N million from the sale of california oil and gas properties + revenue rose N N to $ N billion from $ N billion + chevron said higher crude oil prices boosted profits from production operations but margins in refining and marketing declined + profits from u.s. exploration and production operations totaled $ N million after the property sale loss compared with a year-earlier $ N million loss that included a $ N million reorganization charge + refining and marketing operations earned $ N million in the quarter this year compared with earnings of $ N million a year earlier that included $ N million in charges for environmental programs + foreign earnings fell to $ N million from $ N million that included a $ N million gain from lower canadian and australian taxes + chemical profits fell to $ N million from $ N million + jeff rowe contributed to this article + asarco inc. continuing its effort to <unk> its business ended its involvement in asbestos mining in the third quarter and said it would stop mining and selling coal by year end + the mining metal and <unk> concern said combined revenue for asbestos and coal was about $ N million of the company 's total revenue in N of $ N billion + richard de j. <unk> chairman president and chief executive officer said the company 's decisions to get out of asbestos and <unk> coal continue the process of <unk> and focusing the company in areas with a better future + asarco also reported third-quarter net income rose N N to $ N million or $ N a share from a restated $ N million or $ N a share a year earlier + asarco said the gain reflected continued strength in prices for refined copper lead and <unk> and higher equity earnings in mexico <unk> industrial <unk> s.a. a mexican mining company in which asarco has a N N stake + the N results were restated for <unk> changes + sales rose N N to $ N million from $ N million + in august asarco through its <unk> <unk> du quebec subsidiary sold its remaining one-third interest in an asbestos mining limited partnership in canada for $ N million + asarco said it plans to shut down or sell its <unk> coal mine and will end its involvement in southern illinois strip mining + the company said that it is discussing a <unk> buy-out of the facility but that it would stop mining and selling coal at year end when existing sales contracts expire regardless of the outcome of those talks + in new york stock exchange composite trading asarco fell $ N to close at $ N + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + david w. <unk> was elected vice president and chief financial officer effective nov. N + mr. <unk> N years old a former finance executive at singer <unk> machine co. and <unk> corp. succeeds francis l. <unk> N who plans to retire from the company next year + carlos a. <unk> vice president pharmaceutical manufacturing will assume responsibility for manufacturing in <unk> mich. effective nov. N + mr. <unk> N years old succeeds john c. <unk> N who is retiring as corporate vice president of pharmaceutical manufacturing + upjohn is a world-wide provider of health-care products and services seeds and <unk> chemicals + this brooklyn n.y. <unk> maker announced a N N stock dividend payable dec. N to holders of record nov. N + as of sept. N <unk> had N million common shares outstanding + jay marcus president said the move reflects the confidence of our board and management in <unk> 's long-term prospects and our desire to provide our shareholders with an attractive return on their investment + in american stock exchange composite trading <unk> closed at $ N a share up N cents + walter m. brady was named a senior vice president of this insurer in the canadian head office + he had been vice president in that office + john b. <unk> was named senior vice president and remains responsible for the individual policy services department + frank j. <unk> was named senior vice president in charge of the mortgage finance department + he had been vice president of the department which was formerly called the real estate department + timothy c. brown a vice president was named executive vice president and a director of this lighting and specialty products concern + in the director post mr. brown N years old succeeds joseph w. <unk> who retired from the board in august + c. <unk> <unk> N vice president and chief financial officer was named senior vice president of corporate development and acquisitions a new post + <unk> j. <unk> N vice president secretary and treasurer was named vice president of finance and chief financial officer + he remains secretary + ronald b. <unk> N years old was named a senior managing director of the <unk> & co. brokerage subsidiary of this insurance and financial-services firm + mr. <unk> will build the <unk> and investment-banking business of <unk> which has primarily been a <unk> firm + he was chairman and co-chief executive officer of <unk> <unk> & co. until july when he was named <unk> of the investment-banking firm along with howard l. <unk> jr. who then became the sole chief executive + yesterday mr. <unk> N said he was n't aware of plans at <unk> to name a <unk> to succeed mr. <unk> and said the board would need to approve any appointments or title changes + mr. <unk> added he was n't surprised mr. <unk> resigned but his departure was nothing that we <unk> or worked for + mr. <unk> said i just got a tremendous offer from <unk> + mci communications corp. said it received a $ N million contract to provide <unk> network services to woolworth corp. 's N corporate and retail sites in the + the contract also provides for advanced billing and network management services + woolworth said it expects to expand usage of the mci services as it adds about N business locations over the next few years + the philippine merchandise trade deficit widened to $ N billion during the first eight months of N from $ N million a year earlier + imports continued to <unk> philippine exports despite gains in shipments abroad the government national statistics office said + exports reached $ N billion up from $ N billion a year earlier while imports rose to $ N billion from $ N billion + the trade deficit in the first eight months is already wider than the trade gap of $ N billion for all of N + analysts expect the trade gap for the year to <unk> $ N billion as demand for capital equipment and raw materials continues to push imports higher + <unk> corp. said it signed a definitive agreement with <unk> <unk> inc. a murray hill n.j. maker of health-care products for the purchase of the company 's <unk> <unk> division for about $ N million + <unk> a maker of electronic medical equipment said the transaction is expected to close on or before nov. N + <unk> had N sales of about $ N million <unk> said + <unk> n.c. + first wachovia corp. said john f. <unk> iii will retire as president and chief executive officer of this regional banking company 's wachovia corp. and wachovia bank & trust co. subsidiaries on dec. N + mr. <unk> N years old will be succeeded by <unk> <unk> baker jr. N the parent 's chief credit officer and head of its administration division + mr. baker will <unk> his previous positions but a successor for him has n't been named yet + in addition on jan. N thomas a. bennett N will become vice chairman and chief operating officer of wachovia and wachovia bank & trust filling a vacancy left by the retired <unk> w. <unk> in april + mr. bennett will continue as executive in charge of the north carolina banking operation + messrs. baker and bennett have been elected directors of wachovia and wachovia bank & trust filling vacant seats on both boards + canadian retail sales rose N N in august from july statistics canada a federal agency said + the august increase followed a N N decline in july + during the past four months retail sales have remained generally weak advancing an average N N a month the agency said + <unk> production by the nation 's mills decreased N N last week to N tons from N tons the previous week the american iron and steel institute said + last week 's output fell N N from the N tons produced a year earlier + the industry used N N of its capability last week compared with N N the previous week and N N a year ago + the american iron and steel institute reported the capability utilization rate is a <unk> designed to indicate at what percent of its production capability the industry is operating in a given week + with reduced exports and rising imports south korea 's trade surpluses with the u.s. and europe between january and september fell sharply from a year ago the customs administration said + officials said south korea 's trade surplus with the u.s. for the first nine months of the year totaled $ N billion down N N from the same period last year on a <unk> basis + south korean exports to the u.s. during the period fell N N from a year ago to $ N billion while imports from the u.s. soared N N to $ N billion + the trade surplus with europe was pegged at $ N million down N N from a year ago + officials said south korean exports to europe dropped N N to $ N billion while imports from there went up N N to $ N billion + bausch & <unk> inc. said its pharmaceuticals subsidiary agreed to supply <unk> <unk> <unk> for animal eye surgery to a unit of international minerals & chemical corp + terms were n't disclosed + the agreement marks bausch & <unk> 's first venture selling its eye care products for use by <unk> + the <unk> <unk> shield helps speed <unk> of the <unk> after eye surgery + the product will be distributed by <unk> inc. a subsidiary of international minerals + france 's industrial production index for july and august rose N N from june and was up N N from a year ago according to seasonally adjusted data from the national statistics institute + the state agency which usually publishes the data on monthly basis but traditionally combines the index for the two <unk> months said the advance was led by output of consumer goods which rose N N from june and was up N N from a year earlier + <unk> goods turned in a strong showing with a monthly rise of N N and a <unk> advance of N N + food production was ahead N N from june and N N from a year earlier + output in the <unk> sector was ahead N N on a monthly basis and N N year on year + these gains were partly offset by output of cars and other consumer <unk> which eased N N from june 's high level + the sector was still N N above its output levels from a year earlier however + international minerals & chemical corp. said it agreed definitively to sell its international <unk> business to <unk> ag of west germany + terms were n't disclosed + the maker of animal health and <unk> products said the business <unk> <unk> of port <unk> switzerland and <unk> n.y. is a division of its <unk> inc. subsidiary and had sales of about $ N million for its most recent year + international minerals said the sale will allow <unk> to focus its resources on its core businesses of medical products specialty chemicals and <unk> + consumers power co. filed with the michigan public service commission a contract to buy power from the <unk> nuclear plant under a proposed new ownership arrangement for the plant + consumers power and <unk> power corp. last year announced a joint venture to buy the plant currently owned completely by the utility + two japanese scientists said they discovered an antibody that in laboratory <unk> experiments <unk> <unk> cells while preserving healthy cells + if further experiments are successful the work would represent a major advance in research on acquired immune deficiency syndrome + the drug azt the only treatment currently on the market claims only to help stop the spread of aids not to cure it + but several analysts and japanese scientists familiar with the study which was announced at a conference in <unk> yesterday expressed skepticism over the significance of the results + and the researchers themselves acknowledged they still must do much more work before they can say whether the treatment would actually cure humans + <unk> <unk> a research scientist at the tokyo metropolitan institute of medical science said the antibody he discovered works by recognizing an <unk> called a <unk> which is characteristic of an infected cell + the antibody then <unk> the cell + dr. <unk> and his partner <unk> <unk> of <unk> university said their experiments showed that the antibody wiped out an average of N N of <unk> cells within three days + in some of the experiments it killed almost all the infected cells the researchers said + meanwhile fewer than N N of the healthy cells were killed + the two said they must still do more laboratory tests then experiment on animals + they said they hoped to conduct tests on human patients in the u.s. by late next year + japan does n't have enough aids patients to do significant <unk> in that country they said + the announcement got wide exposure in the japanese media and even moved some pharmaceutical stocks yesterday + but <unk> <unk> director of the <unk> department at japan 's national institute of health and secretary of the government 's <unk> center said i 'm not so optimistic of its future use in <unk> methods + he said some infected cells may not have the relevant <unk> and so would n't be killed even after exposure to the antibody + the results seem to be very <unk> said <unk> <unk> editor of nikkei biotechnology a leading japanese industry newsletter + dr. <unk> responded that he thought the antibody could potentially kill all infected cells + but he and dr. <unk> said there were still several uncertainties particularly regarding possible side effects + our antibody specifically killed infected cells at a very low <unk> but it can also kill other cells said dr. <unk> + we do n't know the effect of our antibody on the human body + aids is n't considered a widespread problem in japan the government reports about N known carriers of the virus but many companies have poured substantial resources into research in recent years hoping to cash in on a possible cure + dr. <unk> said about N projects are currently under way in japan and that japanese researchers in the past year have made available three possible <unk> to american researchers for clinical tests + he said that when scientists from the two countries meet again in january in new orleans the japanese will present at least three more drugs for human testing + azt is the world 's only prescription medicine approved for treating the disease + wellcome plc a major british pharmaceutical maker sells the drug under the name <unk> + a wellcome spokesman declined to comment on the discovery of the antibody in japan + but andrew porter a <unk> analyst at nikko securities co. in london said if the product were to be successfully developed it would represent a potential threat to the long-term viability of <unk> + the following issues were recently filed with the securities and exchange commission + american exploration co. offering of five million common shares via smith barney harris upham & co. and shearson lehman hutton inc + chemical waste management inc. proposed global offering of N shares of common stock of which seven million of the shares will be offered in the u.s. and N shares will be offered overseas via merrill lynch capital markets domestic and kidder peabody & co international + <unk> corp. proposed offering of $ N million of senior subordinated debentures via goldman sachs & co + <unk> capital corp. robin cable systems l.p. and <unk> cable partners offering of senior subordinated discount reset debentures via drexel burnham lambert inc + john <unk> & co. initial offerings of the <unk> california performance plus municipal fund inc. and the <unk> new york performance plus municipal fund inc. via alex brown & sons inc + <unk> inc. initial offering of three million shares of its common stock of which N shares will be sold by the company and N will be sold by holders via montgomery securities and donaldson lufkin & jenrette securities corp + mgm grand inc. proposed offering of six million shares of common stock via merrill lynch + <unk> corp. formerly called old dominion systems inc. offering of N million common shares of which one million will be sold by the company and the balance by holders via hambrecht & quist and johnston <unk> & co + scott paper co. shelf offering of up to $ N million of debt securities via goldman sachs salomon brothers inc. and smith barney harris upham + sullivan graphics inc. offering of $ N million of senior subordinated notes via merrill lynch + sun <unk> inc. initial offering of N million common shares of which one million shares will be sold by the company and the balance by a holder via salomon brothers inc. and <unk> <unk> & <unk> inc + yes clothing co. proposed initial offering of N common shares of which N shares will be offered by the company and N by holders via <unk> <unk> securities inc + a # N million $ N million british airways plc rights issue <unk> badly the victim of recent market turbulence and the collapse of the buy-out bid for united airlines ' parent ual corp + the united kingdom carrier had planned the issue to help finance its $ N million purchase of a N N stake in ual + but british airways withdrew from the ual labor-management buy-out plan last friday after the group failed to get bank financing for its $ N billion buy-out + british airways said its shareholders accepted only N N of the convertible capital bonds but that the rest of the issue will be taken up by underwriters + analysts said that N N level marked the poorest showing for any major british rights issue since the N global stock market crash + it is close to being a record <unk> said bob <unk> an analyst with london broker smith new court securities + fund managers do n't like to have rights issues that do n't have an obvious reason + the obvious reason was for british air to buy a stake in united airlines + in a statement british air chairman lord king said the company was obviously disappointed that the issue was not taken up but it would have been <unk> to expect a better result given the volatility of the stock market since the launch of the issue + but except for the embarrassment british air will emerge relatively <unk> from the <unk> issue + underwriters led by lazard brothers & co. will pick up the rest of the airline 's offer of four convertible capital bonds for every nine common shares + lazard and other primary underwriters have reduced or eliminated their exposure by <unk> the issue among u.k. institutional investors + the paper loss here is very small for these <unk> observed john nelson a lazard managing director + in any case he added most institutions probably wo n't sell the bonds + and instead of buying the ual stake the u.k. carrier will be able to reduce its high debt level and build an acquisition war <unk> + from a cash flow point of view british airways is better off not being in united airlines in the short term said andy chambers an analyst at nomura research institute in london + added another u.k. analyst it gives them some cash in the back <unk> for when they want to do something + for instance british air is continuing to negotiate with <unk> royal dutch airlines about each acquiring a N N stake in <unk> world airlines the air transport subsidiary of the belgian national airline + a definitive agreement had been expected by the end of july + the failed rights issue also should have a modest impact on british air shares + the airline 's share price already is far below the N pence $ N level seen after the company announced the rights issue in late september + in late trading on london 's stock exchange yesterday the shares were off three pence at N pence + and because british air is issuing convertible bonds rather than ordinary shares the share price wo n't be directly hurt by any surplus left with underwriters after they try to sell the issue in the open market + but british air 's withdrawal from the ual buy-out could have further <unk> + some analysts speculated yesterday that the move has set off a board room split which may lead to the resignation of sir <unk> marshall the carrier 's chief executive officer + the stories are <unk> a british air spokesman said + there is no difference of opinion between chairman lord king and sir <unk> on any aspect of company policy + minority recruiting has yet to meet hopes raised by bush administration + six months ago as some personnel specialists saw it a perception that president bush really <unk> about fair employment after what they said was eight years of <unk> <unk> was <unk> top management to raise hiring goals for <unk> blacks and other minorities + the perception <unk> says an official at a major industrial company + but so far he declares there 's little evidence the new urgency is <unk> down to the managers who actually do hiring + is there really a commitment or an illusion of activity he asks + the recruiting has n't materialized asserts jeffrey christian who runs a search agency + samuel hall howard university 's placement director also does n't see it + and he questions the white house <unk> + i do n't think the bush administration has done anything he says + <unk> donald clark does note an increase in searches for minority candidates + but some of the activity he says may reflect a rush to get numbers in order for <unk> reports + pay for performance hangs mostly on boss 's <unk> view + du pont co. in a couple of units has installed objective tests based on earnings or return on equity + many companies have set up machinery to assure workers a fair shake + at most firms though it 's the immediate supervisor who decides the merit increases subordinates will be paid + managers have some very broad discretion says an official at walt disney co + unocal corp. 's top management sets guidelines but line supervisors <unk> up the merit pie + lotus development corp. feeds its <unk> into a computer but only for storage the decisions are made by supervisors + <unk> foods corp. <unk> for fairness by <unk> increases on quarterly reviews annual <unk> and meetings with workers + at <unk> technology inc. each supervisor 's recommendation must be approved by the next boss up the line and then <unk> by a salary review committee + japanese companies fare best in u.s. when they give americans more say + university of michigan researchers find the companies earn more and win a bigger market share when their american employees get a voice in planning product development and design including <unk> back in japan + you ca n't hire competent americans and say let them run only their own show says <unk> <unk> who headed the study run with egon <unk> international a search firm + the researchers say many japanese companies <unk> in the u.s. by adopting the american practice of hiring managers on the open market + in japan by contrast companies tend to develop their own talent and promote from within + the japanese also are accused of keeping their cards too close to their <unk> + some japanese executives are not yet comfortable about sharing strategic information with their american colleagues the researchers say + americans stay longer with japanese firms than american companies + but they think promotions are limited + the house votes down a proposal to put pension plans under the control of joint labor-management boards + some consultants had insisted it would n't work + long-term care insurance gains favor + more than half the people surveyed for the employee benefit research institute say they would be willing and able to pick up most of the cost of the coverage + <unk> spending by small and medium-sized employers has dropped to N N of payroll from N N three years ago says the national institute of business management an advisory service + ousted executives over N years old take slightly less time than their younger colleagues to find a job N months vs. N for the <unk> <unk> firm <unk> gray & christmas finds + it 's the first time in the survey 's N years that the <unk> group came out ahead + fear of aids <unk> hiring at few hospitals + <unk> runs high + <unk> <unk> who heads the aids program at new york city 's <unk> hospital center ca n't find help + i 've been recruiting every single day since it 's been identified that many aids patients come from the inner city she says + she was the only staff physician available to treat aids patients last summer and now she has the help of only two doctors part time + part of the problem though may reflect a general <unk> to work with the urban poor + <unk> <unk> hospital in dallas says it has n't had any problem recruiting even after a <unk> contracted the virus while <unk> an aids patient + i can tell you that nobody quit over it + no one <unk> a spokeswoman says + st. paul medical center also in dallas sees only a minimal erosion of support staff due to aids + <unk> haven hospital sees no problem says john <unk> the chief of staff + there are enough <unk> and <unk> individuals who know their responsibilities he says + the <unk> at least somebody gains on layoffs + the association of <unk> consulting firms says the industry 's volume has soared tenfold since N to $ N million a year + and somebody loses on the expected repeal of section N the benefits test fought by most employers + <unk> solutions says software producers had each invested hundreds of thousands of dollars in programs that now have no use + big gains for the <unk> republicans party in <unk> state municipal elections sunday showed eroding support for chancellor helmut kohl in a traditional <unk> for his christian democratic union + with <unk> from most of the state 's major cities in by yesterday morning the republicans came away with N N of the vote in several of the key districts + with many rural districts yet to report <unk> election officials estimate support for christian democrats fell an average five percentage points statewide + the <unk> social democrats and the environmental greens party posted mixed results + headed by a former <unk> <unk> <unk> and working from a <unk> platform of <unk> rhetoric the fledgling republicans party has scored surprising gains in earlier elections in the states of west berlin <unk> and <unk> <unk> + with west german unemployment remaining high at two million jobless and the lack of affordable housing becoming a primary issue for next year 's campaign the republicans are seen drawing support for their germans first stand on <unk> issues + election analysts acknowledge that a <unk> coalition of social democrats and greens could edge out chancellor kohl 's coalition in the december N national election if support for the republicans continues to spread + international investigators urged britain to allow prosecution of suspected <unk> war criminals who took refuge there after N + under current law such suspects are immune from prosecution for acts committed while not british citizens + if we 're not careful we could become known as a haven for war criminals said jeff <unk> a member of parliament and one of several british politicians attending a london conference with government investigators from the u.s. canada and australia + a parliamentary inquiry found in july that more than N people living in britain could have been part of death <unk> that <unk> <unk> eastern europe + parliament is expected to discuss next month whether to change the law + british investigations were prompted by a list of N alleged war criminals living in britain sent to prime minister margaret thatcher in october N by the simon <unk> center in los angeles + in a sign of easing tension between beijing and hong kong china said it will again take back illegal <unk> caught crossing into the british colony + china had refused to <unk> citizens who <unk> into hong kong illegally since early this month when the colony allowed a dissident chinese <unk> to <unk> to the u.s. + about N chinese were awaiting <unk> yesterday + italy 's foreign ministry said it is investigating exports to the soviet union by an <unk> c. olivetti & co. subsidiary called <unk> that makes <unk> controlled machine tools + although italy 's investigation of whether olivetti had violated western <unk> rules had previously been made known this marked the first time the unit and product were named + the u.s. is worried about the <unk> of olivetti 's machine tools to military use + however an olivetti spokeswoman said <unk> of which olivetti sold the majority interest last year does n't make equipment that has the type of precision necessary for sophisticated productions + <unk> say that <unk> fishing threatens to wipe out much of the world 's <unk> stocks in a few years + but the japanese <unk> association criticized moves to ban the practice in international waters + it is really unfortunate for human beings to be <unk> by emotional discussions the association said + in <unk> or wall of death fishing fleets lay <unk> up to three miles long that trap almost everything in their path + earlier this year japan said it would cut the number of its <unk> vessels in the south pacific by two-thirds or down to N + workers at <unk> s.a. 's car plant at <unk> in eastern france voted to end a <unk> strike that has cost the <unk> group production of N automobiles a company spokesman said + the <unk> voted to accept a series of management proposals that will give them a higher basic wage better <unk> benefits and bigger annual bonuses + the spokesman said the vote at <unk> is expected to be followed by a similar move at the company 's assembly plant at <unk> where the number of <unk> has been <unk> down to N + about N national union of <unk> members resumed their strike against de beers consolidated mines ltd. after further negotiations to settle a wage dispute broke down + striking workers who began striking five diamond mines on oct. N had returned to work last week when the union and de beers arranged to reopen negotiations + a de beers spokesman said yesterday the company had offered to increase the minimum wage by N N while the union was demanding N N + before the two parties resumed talks last week de beers offered N N and the union wanted N N + china 's people 's daily took note of the growing problem of computer fraud + since the first fraud was discovered in july N at an office of the people 's bank of china in <unk> N major cases have been found the paper said the biggest was the theft of $ N from a bank in <unk> in march N + the number of computers has <unk> in recent years with N in use as well as N <unk> models + but security systems effective management controls and regulations to govern their use have not kept pace the people 's daily said + besides money criminals have also used computers to steal secrets and intelligence the newspaper said but it gave no more details + japanese tourists will be told to take care when <unk> earthquake damage in san francisco the japan association of travel agents said + the association issued an advisory to its N member agencies following a report from the foreign ministry that <unk> by japanese tourists in <unk> areas was causing ill feeling among local residents + tass said <unk> 's <unk> in red square will be closed from nov. N to jan. N for essential maintenance + the red <unk> <unk> draws thousands of visitors daily + <unk> on rural <unk> rose N N between N and last year the national highway traffic safety administration said in a report on the impact of the N <unk> speed limit on those roads + the report to congress said that <unk> rose N N in N and N N in N on rural <unk> + the N highway bill permitted states to raise the speed limit to N mph from N mph on interstate roads which are defined as highways that pass through areas with fewer than N people + since N N states have increased the speed limit on rural <unk> + about one-third of the <unk> increase is attributed to greater travel and about two-thirds is attributed to other factors primarily to greater speed according to <unk> + the report showed that deaths on urban interstate highways rose N N between N and last year while <unk> on <unk> roads were about the same in N as in N + in states that raised the speed limit on rural <unk> the <unk> rate rose about N N to N deaths per N million miles traveled between N and N + in contrast the <unk> rate in the states that retained the N mph limit was N last year the same as in N + <unk> <unk> + food manufacturer changes <unk> of <unk> to <unk> saying that 's the <unk> people now prefer + wsj business <unk> + public preference is important so product names should match up and firms that find they 're lagging behind should now take steps to <unk> + george o. <unk> + judge not + how easy it is to attack others ' views without ever setting a foot in their shoes + g. sterling <unk> + daffynition + <unk> course <unk> + thomas henry + in an oct. N editorial-page article it 's the world bank 's turn to adjust paul craig roberts <unk> most of the blame for what <unk> developing countries at the <unk> of the world bank + the article is unfortunately <unk> with <unk> <unk> + one of mr. roberts 's <unk> is that the bank 's own loan portfolio is in deep trouble because of its lending to developing countries + this is just not so + the reality is that bank finances are rock solid + as of june N N the day our past fiscal year came to a close only N N of the bank 's portfolio was affected by <unk> of over six months + this is an <unk> low level + moreover the bank follows a prudent <unk> policy and has set aside $ N million against possible loan losses + for the same fiscal year by the way the bank 's net income was a robust $ N billion after provisions + because of the <unk> manner in which the bank goes about development financial markets have confidence in it + this helps explain the triple-a rating enjoyed by our bonds and our ability to borrow $ N billion in fiscal N on the most <unk> terms + another of mr. roberts 's criticisms is that bank lending has done more harm than good by <unk> the wrong incentives and <unk> energy away from economic development + here too mr. roberts is way off the mark + the reality is that bank loans have been linked to policy improvements for N years + our traditional project loans have for instance supported <unk> energy pricing in the power sector sound interest-rate policies in the credit area and the operation of public utilities as efficient <unk> agencies + by and large these efforts have <unk> fruit + in my home region latin america much of the existing infrastructure base an important building block for development has been financed by the world bank + mr. roberts also takes a <unk> at the bank 's adjustment lending + what are the facts on this type of lending + the bank has been making adjustment loans for N years + as their name implies these operations are linked to far-reaching policy reforms that aim at helping borrowing countries get back on the growth path and at <unk> their <unk> + typically these measures include reforms to <unk> the role of government and <unk> in the economy to open up <unk> economies to international competition and to promote the development of a vigorous private sector + support for the private sector has been a longstanding concern of the bank 's + over the years it has helped encourage investments by entrepreneurs in the third world through its extensive credit operations and through loans and investments by the international finance corp + most recently the bank group has been expanded to include the <unk> investment guarantee agency to stimulate direct foreign investment in developing countries by offering guarantees against <unk> risk and advice to member countries on how to improve their business climate + these are not the actions of a development agency <unk> to central planning and to the concentration of investment decisions in the hands of government as mr. roberts alleges + rather they reflect the bank 's <unk> <unk> approach which aims at ensuring that developing countries put their scarce resources to the best possible use + francisco <unk> director external affairs the world bank + the government said it would streamline its enormous and <unk> food marketing and distribution network <unk> <unk> de <unk> <unk> or conasupo + conasupo director <unk> <unk> fernandez said the agency will sell N midsized supermarkets and several <unk> plants and warehouses beginning early next year + the agency will withdraw from the production of nine food products maintaining production of the two most important ones corn and milk + mr. <unk> also said conasupo will cut back subsidies to producers of <unk> farm products and close retail outlets in wealthy neighborhoods + the agency 's workers and private companies would be allowed to bid for the assets up for sale + conasupo controls prices on agricultural goods and operates retail outlets where basic consumer items are sold at <unk> prices + business leaders have long criticized the agency as a leading example of <unk> waste + private-sector leaders praised the conasupo restructuring + but most economists doubt the streamlining would cut deeply into conasupo government subsidy which largely goes to reduce consumer prices for corn and milk + the food and drug administration banned all imports of mushrooms from china in response to a rash of <unk> <unk> linked to <unk> chinese mushrooms + the agency has concluded that <unk> may be widespread throughout the <unk> industry in china an fda spokesman said yesterday + the agency wo n't allow mushrooms that were <unk> or packed in <unk> at any chinese plant to enter the u.s. until satisfactory <unk> measures are implemented in china to prevent <unk> <unk> + on may N the fda began <unk> chinese mushrooms in <unk> cans after more than N people in mississippi new york and pennsylvania became ill from eating tainted mushrooms + in subsequent tests the agency found <unk> cans from several chinese plants to be similarly <unk> + the <unk> were <unk> to <unk> <unk> a type of bacteria that produces a toxin capable of surviving the high temperatures used in <unk> <unk> + a recall of the mushrooms blamed for the food <unk> began in early march + in N china exported N million pounds of mushrooms valued at $ N million to the u.s. + the shipments went mostly to <unk> distributors that supply <unk> and restaurants + a spokesman for the chinese embassy here said that the beijing government has taken many effective measures to stop the <unk> <unk> and is further investigating the underlying causes + he predicted the problem will be solved very soon + your sept. N politics & policy article about william bennett 's emergency drug plan for washington gives the impression that the fbi has not been nor is actively involved + this is not the case + the fbi is very supportive of and an active participant in mr. bennett 's initiative + it was agreed at the outset of the washington drug initiative that the fbi 's role would be to continue targeting the major drug traffickers through our national drug strategy + through these investigations we do not focus on the street drug user but rather we target and attack major <unk> organizations that control a large segment of the drug market + the trial of <unk> <unk> iii in washington serves to highlight our efforts in this area and the results achieved through our excellent working relationship with the drug enforcement administration and the metropolitan police department <unk> + the fbi 's role is to <unk> the d.c. initiative through not only these major trafficking investigations but also by providing a full range of services through various task forces and our contacts with local police <unk> handling drug-related crimes + in fact we have agents assigned full time to assist the <unk> in drug-related crimes such as <unk> and other crimes of violence + <unk> <unk> assistant director office of public affairs federal bureau of investigation + ramada inc. revised the terms of its restructuring and extended to feb. N N the deadline to complete the sale of its hotel business to new world development co. of hong kong and prime motor <unk> inc. of fairfield n.j + ramada 's previous plan was <unk> by upheaval in the junk-bond market that <unk> the offering of $ N million in high-yield securities of <unk> corp. the new company that will operate ramada 's casinos in nevada and atlantic city + under the new terms new world will still pay $ N million for ramada 's hotel business subject to adjustment at closing but ramada will now reimburse new world for $ N million in expenses + prime will still manage ramada 's domestic franchise system when the sale closes + revised terms call for each ramada common share to be exchanged for $ N in cash subject to possible reduction and one share of <unk> common stock + shareholders will also receive one cent per share for the redemption of preferred stock purchase rights + the cash payout will be reduced by N N of any amount by which the weighted mean price of ramada 's common stock exceeds $ N on the day the transaction closes + the provision will help provide for tax liabilities that may stem from the restructuring + ramada 's stock rose N cents on the news to close at $ N in composite new york stock exchange trading + the announcement <unk> some wall street observers ' fears that new world might demand a huge premium for the delay or scrap the deal entirely + the previous deadline to complete the sale was nov. N + one major advantage of the revised plan is that <unk> will have far less debt than under the old terms + they 'll go from being one of the most leveraged to one of the least leveraged casino companies said daniel lee an analyst with drexel burnham lambert inc + mr. lee values the package at between $ N and $ N a share based on current trading prices of other <unk> stocks + the <unk> restructuring which was first announced in october N must again be approved by shareholders and state casino regulators in nevada and new jersey + financing plans include raising $ N million in debt secured by the company 's holdings in new jersey + in may ramada sold its <unk> <unk> pie shops inc. unit to a group of private investors as part of its plan to focus on its casinos in atlantic city and in las vegas and <unk> <unk> + bond prices took the high road and stock prices took the low road as worries mounted about the economy and the junk bond market + the dow jones industrial average fell N points to N in sluggish trading + but long-term treasury bonds staged a modest rally with prices on most issues rising about half a point or $ N for each $ N face amount + the dollar sagged against other major currencies in <unk> trading + traders and analysts said the divergence between the stock and bond markets is a sign of growing <unk> about the economic outlook + a sinking economy <unk> corporate earnings and thus stock prices but it <unk> bond prices as interest rates fall + that <unk> is expected to grow today when the government reports on september durable goods orders and again thursday when the first assessment of third-quarter economic growth is released + analysts say they think durable goods orders fell about N N compared with a N N gain in august and that growth in the third quarter slowed to about N N from the second quarter 's N N + the stock market 's decline coming after a record weekly gain of N points surprised some investors + but a.c. moore director of research at <unk> research said last week 's rally was a <unk> reaction to the oct. N stock market rout + overall he said the trend in stock prices will be down as the economy <unk> + we think we 're on target in looking for renewed economic deterioration he said + corporate profits are going to decrease faster than interest rates will fall and the probability is that we 'll see negative economic growth in the fourth quarter + <unk> johnson chief investment officer at first albany corp. agreed that a deteriorating economy is worrisome but he said the real concern among stock investors is that some new problem will crop up in the junk bond market + in major market activity stock prices slumped in sluggish trading + volume on the new york stock exchange totaled N million shares + declining issues on the big board were ahead of gainers N to N + bond prices rallied + the yield on the treasury 's benchmark 30-year bond slipped to N N + the dollar weakened against most other major currencies + in late new york trading the dollar was quoted at N marks and N yen compared with N marks and N yen late friday + the wall street journal american way of buying survey consists of two separate <unk> nationwide polls conducted for the journal by peter d. hart research associates and the roper organization + the two surveys which asked different questions were conducted using national random probability samples + the poll conducted by peter d. hart research associates interviewed N adults age N and older from june N to june N N + the poll conducted by the roper organization interviewed N adults age N and older from july N to july N N + responses were weighted on the basis of age and <unk> to conform with u.s. census data + for each poll the odds are N out of N that if <unk> had sought to survey every household in the u.s. using the same <unk> the findings would differ from these poll results by no more than N N percentage points in either direction + the margin of error for <unk> for example married women with children at home would be larger + in addition in any survey there is always the chance that other factors such as question <unk> could introduce errors into the findings + see related story the american way of buying is buying a car a choice or a <unk> + ironically american airlines ' attempt to lead industry prices higher was reported in the same issue as your survey showing that consumers had the least confidence in the airline industry sept. N + you quote robert crandall chairman of american 's parent amr corp. as having said that discount deals for big customers would be <unk> because you will go to detroit because you have to go to detroit whether the fare is $ N $ N or $ N + even if mr. crandall is correct he of all people must realize our society relies on competition to keep prices at a competitive level + in N he settled an antitrust suit based on a taped telephone conversation of him proposing to <unk> 's president that they both raise fares N N + <unk> declined + when i asked american airlines for its side of the story for use in my <unk> class where i teach business ethics it did not respond + perhaps the ethics of an industry 's leader filters down and is one of the factors that ultimately <unk> consumer trust in that industry + arnold <unk> assistant professor ohio state university + meredith corp. is launching a new service to offer advertisers package deals combining its book magazine and videocassette products + the des <unk> publisher said it created a new custom marketing group that will offer advertisers special rates for combination packages in its magazines such as <unk> home journal and better homes and gardens + in addition the group will create <unk> media such as <unk> newspaper <unk> and <unk> for ad campaigns + earlier this year meredith sold its first such package for $ N million to kraft inc. now a unit of new york-based philip morris <unk> + the kraft package included a specially published <unk> a national <unk> <unk> in sunday newspapers and a kraft <unk> section that ran in five meredith magazines + kraft recently agreed to spend an additional $ N million on similar programs through N + bill murphy director of the new marketing unit said meredith is negotiating other large-scale packages with leading companies in several product categories but he would n't disclose their names + sources close to the company and ad agencies that work with meredith said leading advertisers in consumer electronics packaged goods and automotive products were among those negotiating ad packages with the meredith group + other magazine publishing companies have been moving in the same direction + the new york times co. 's magazine group earlier this year began offering advertisers extensive merchandising services built around buying ad pages in its golf digest magazine + time warner inc. recently formed a <unk> department to seek out ways to offer advertisers packages that could combine time 's magazines with warner products such as <unk> + paul <unk> director of media services at grey advertising said meredith is the leader in providing <unk> packages + they may get passed up later when other publishers get their acts together but for now they are the <unk> offering the most extensive plan he said + mr. murphy of meredith said one advertiser which he would n't identify wants meredith to provide ad pages in seven meredith magazines publish an <unk> book that will be distributed at point of purchase give away a <unk> on installation <unk> and possibly use meredith 's better homes and gardens ' residential real-estate agents to distribute <unk> books to new homeowners + five years ago magazine publishers would simply bid on an advertiser 's big ad schedule for their magazine said mr. murphy + but the marketplace changed + advertisers now say help us improve our image and extend our selling season + they are coming to publishers looking for ideas + your sept. N article it 's so easy to get burned when buying a small firm was excellent + i 've been advising small businesses many years and have lived with the fact that N N will go out of business within two years and N N in five years + the economic loss jobs lost <unk> frustration and <unk> are beyond measure + and most of these are absolutely unnecessary + your article points out the <unk> people fall into but when reviewing those <unk> one sees just about all of them could have been avoided + an <unk> did not review the seller 's books before buying a business + i guess i was <unk> he said + there is a more <unk> word to describe his <unk> of common sense + corporate managers who want to start their own business are the highest failure risks + they know all the answers and are not used to working more than N hours a week + the blue-collar worker who decides to start a business will listen and take advice + his <unk> gives him a much better chance of success + a few months ago your paper reported the results of a study to determine why <unk> who arrive in this country without any money and unable to speak english become overnight successes + their secret is that they gather a small group of advisers around them listen to what they have to say prepare a business plan and they are on their way + successful american business owners do the same thing + unfortunately they are in the minority + avoiding failure is easy + it 's unfortunate so many must learn the hard way + daniel b. <unk> tucson <unk> + the management turnover at reebok international ltd. continued with the resignation of company president c. joseph <unk> who joined reebok just two years ago + mr. <unk> 's departure follows by two months the resignation of mark <unk> as senior vice president and chief marketing officer after only N months at reebok + the resignations by the two executives considered <unk> and <unk> by reebok insiders reflect a difference in style with paul fireman chairman and chief executive according to several former executives + the two executives are among a number of outsiders recruited by reebok in the past few years to help it make the transition from a small start-up company to a marketing giant with sales last year of $ N billion + the changes come as reebok which grew rapidly in the mid-1980s but has seen its sales <unk> of late is seeking to regain momentum in the <unk> business against rivals <unk> inc. and l.a. gear inc + the departures said alice ruth an analyst at montgomery securities in san francisco should enable the company to focus on business issues instead of management differences + i think it 's more an issue of style + i would view it as a net positive + the company can go about its business + they 're in the midst of a turnaround she noted + earnings have rebounded in N after a N N decline last year + a former executive agreed that the departures do n't reflect major problems adding if you see any company that grows as fast as reebok did it is going to have people coming and going + reebok said mr. <unk> will resume the presidency of <unk> group inc. a <unk> venture capital firm that he founded in N + before that he was president and chief operating officer of <unk> <unk> film corp + reebok added that mr. fireman will assume the title of president + a spokesman said that neither mr. fireman nor mr. <unk> would be available for comment + we will not be commenting beyond the news release the spokesman said + mr. <unk> who had been president of faberge inc. 's faberge u.s.a. division before joining reebok in september N left in august to pursue other interests + magazine publishers are facing <unk> costs and a <unk> of new titles + but even a <unk> of recent failures is n't <unk> them from launching new publications + at the american magazine conference here publishers are plenty worried about the industry 's woes + but they are also talking about new magazines + for example toronto-based <unk> inc. will publish eating well a new food and health magazine due out next summer + new york-based hearst corp. this fall plans to publish its first issue of N months a magazine for <unk> mothers and has already launched american home + and time warner inc. is developing a spinoff of time magazine aimed at kids on the heels of its successful sports illustrated for kids + over the past four years the number of consumer magazines has increased by an average of N magazines annually according to donald <unk> president of the magazine publishers of america + this is an impressive show of faith in the future of the magazine industry said mr. <unk> + entrepreneurs do n't rush to get into a <unk> or declining industry + and despite the recent tough advertising climate industry figures released at the meeting here indicate things may be turning around + for the first nine months advertising pages in consumer magazines tracked by the publishers information bureau increased N N from the same period last year to N pages + total magazine ad revenue for the same period increased N N to $ N billion + though for some magazines categories a tough advertising climate <unk> the industry in general is doing well compared with the newspaper industry + though some magazines are thriving the magazine publishing industry remains a risky business + within the same nine months news corp. closed down in fashion a <unk> young woman 's fashion magazine <unk> publications inc. has <unk> the <unk> venture magazine and lang communications has announced ms. magazine after N years will no longer carry advertising as of january + lang is cutting costs and will attempt to operate the magazine with only subscription revenue + meanwhile american health partners publisher of american health magazine is deep in debt and owen <unk> founder and managing partner is being forced to sell the magazine to reader 's digest association inc + mr. <unk> 's absence from the meeting here raised speculation that the sale is in trouble + mr. <unk> said in a telephone interview from new york that the sale was proceeding as planned + the magazine is strong + it 's simply the right time to do what we are doing mr. <unk> said + magazines can no longer be considered institutions said james <unk> president of meredith corp. 's magazine group + publishers will find that some magazines have served their purpose and should die he added + magazines could like other brands find that they have only a limited life + there are also indications that the number of magazine entrepreneurs traditionally depended upon to break new ground with potentially risky <unk> are <unk> + more than ever independent magazines and small publishing groups are being <unk> up by larger publishing groups such as american express publishing corp. a unit of american express co. and <unk> <unk> publications inc. a unit of advance publications inc. which are consolidating in order to gain leverage with advertisers + some entrepreneurs are still active though + <unk> <unk> president of new york-based network publishing corp. earlier this year sold his soap opera digest magazine to rupert murdoch 's news corp + mr. <unk> said that in the next six months he will take $ N million from the soap opera digest sale to acquire new magazines + he would not reveal which magazines he is considering + the magazines i am looking for are <unk> said mr. <unk> + they could be old or new but they are magazines whose editorial quality needs to be improved + they will be the next hot magazines + mca inc. said its <unk> unit agreed to buy buddy <unk> corp. producer of a line of toy vehicles and <unk> products + the price was n't disclosed but an executive of <unk> toys ltd. the mca unit said the closely held buddy <unk> had annual sales in excess of $ N million + the 40-year-old buddy <unk> concern based in new york designs and develops toys under the names buddy <unk> and my first buddy he said + mca said it expects the proposed transaction to be completed no later than nov. N + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + franklin national bank died at N p.m. edt oct. N N and was promptly <unk> under new owners to shore up confidence in other banks during a recession + arthur burns federal reserve board chairman said the government 's luck in keeping the bank open despite being the <unk> u.s. bank failure prevented shock waves around the country and around the world + federal officials who had been probing the bank for months arranged a merger with <unk> bank & trust owned by six foreign banks to <unk> the <unk> + and federal insurance protected the bank 's N <unk> + the crisis had peaked on may N N when the bank disclosed severe foreign-exchange losses due to unauthorized trading + massive withdrawals followed and there was a brief rescue attempt with political <unk> including $ N billion in federal reserve loans + within six years many figures were convicted for their illegal abuse of franklin funds + in june N <unk> <unk> an italian financier who in july N had bought a N N block of franklin 's stock from <unk> corp. headed by laurence a. tisch was sentenced to N years in prison after being convicted of fraud and perjury + included was the charge that <unk> <unk> $ N million of franklin funds for his other ventures + <unk> in N <unk> his <unk> for N N months to delay his trial + during N to N other former franklin officials either pleaded guilty to or were found guilty of violations including phony transactions to hide the bank 's losses + <unk> the <unk> vatican financial adviser with reported links to the mafia died on march N N at age N reportedly after drinking <unk> coffee in an italian prison + it happened four days after he was sentenced to life in prison for ordering a N murder + italian <unk> labeled his death a <unk> + in a <unk> office building south of los angeles human behavior is being monitored <unk> and ultimately <unk> + a <unk> line <unk> across a video screen <unk> <unk> as subjects with hand-held computers register their <unk> reactions to a speaker 's remarks + agreement <unk> <unk> and <unk> all can be <unk> from the subjects ' twist of a dial + in another experiment an elaborate chart with color codes reveals how people 's opinions were <unk> and how they can be <unk> + donald vinson who oversees the experiments is n't some <unk> researcher + he heads litigation sciences inc. the nation 's largest legal consulting firm which is helping corporate america prepare for <unk> litigation by predicting and shaping jurors ' reactions + in the process litigation sciences is quietly but <unk> <unk> the world of law + little known outside the legal world but a powerhouse within litigation sciences a unit of saatchi & saatchi plc employs more than N <unk> <unk> marketers <unk> artists and technicians + <unk> of its workers are <unk> <unk> + among other services the firm provides pre-trial opinion polls creates <unk> of ideal jurors sets up <unk> trials and shadow <unk> coaches lawyers and witnesses and designs courtroom graphics + much like their <unk> in political consulting and product marketing the litigation advisers encourage their clients to play down complex or <unk> matters <unk> their messages and provide their target audiences with a psychological <unk> to make the <unk> choice + with jury <unk> getting bigger all the time companies are increasingly willing to pay huge sums for such advice + recently litigation sciences helped pennzoil co. win a $ N billion jury verdict against texaco inc + it advised the national football league in its largely successful defense of antitrust charges by the united states football league + and it helped win defense <unk> in <unk> suits involving scores of products ranging from <unk> N tires to the <unk> drug <unk> + largely as a result litigation sciences has more than doubled in size in the past two years + its N revenue was $ N million + meanwhile competitors are being spawned almost daily some N new businesses many just <unk> shops have <unk> up + mr. vinson estimates the industry 's total revenues approach $ N million + in any <unk> case you can be sure that one side or the other or even both is using litigation consultants + despite their <unk> the consultants are n't entirely welcome + some lawyers and scholars see the social scientists ' vision of the american jury system as a far cry from the ideal presented in <unk> <unk> and <unk> on the movie screen + in the film classic twelve angry men the <unk> of deliberations <unk> each <unk> 's bias and <unk> it from playing a role in the verdict + after hours of conflict and debate that jury focuses on the facts with <unk> <unk> + in real life jurors may not always work that way but some court observers question why they should n't be encouraged to do so rather than be <unk> not to + litigation consulting is as new york trial attorney donald <unk> puts it highly <unk> + he adds the notion they try to sell is that <unk> do n't make decisions <unk> + but the effort is also being made to try and cause jurors not to decide things <unk> + i find it troubling + but mr. <unk> also acknowledges that consultants can be very effective + it 's gotten to the point where if the case is large enough it 's almost <unk> not to use them he says + others complain that the consultants ' growing influence <unk> the advantage of <unk> wealthy enough to afford such <unk> services + the affluent people and the corporations can buy it the poor <unk> in political cases get it free and everybody in between is at a disadvantage and that 's not the kind of system we want says <unk> <unk> a prominent sociologist who teaches at george washington university + sophisticated trial consulting grew ironically from the radical political movements of the 1960s and 1970s before finding its more lucrative calling in big commercial cases + the <unk> N trial in N in which daniel <unk> and others were charged with <unk> <unk> violence was a landmark + in that case a group of <unk> <unk> interviewed N registered voters around <unk> + the researchers discovered that <unk> <unk> <unk> and <unk> <unk> were nearly always against the defendants the lawyers resolved to try to keep them off the jury + the defense also learned that <unk> people were <unk> conservative about the vietnam war + a more blue-collar panel became a second aim + ultimately that carefully picked jury <unk> with a N vote to <unk> and the prosecution decided not to <unk> the case + litigation consulting had arrived + the fledgling science went corporate in N when international business machines corp. hired a marketing professor to help defend a complex antitrust case + the problem for ibm trial lawyers thomas <unk> and david <unk> was how to make such a highly technical case <unk> + as the trial <unk> they were eager to know if the jury was keeping up with them + the solution devised by the professor was to hire six people who would mirror the actual jury <unk> sit in on the trial and report their reactions to him + he then <unk> messrs. <unk> and <unk> who had the chance to tilt their next day 's presentation <unk> + thus the shadow jury was born + mr. vinson the professor got the law <unk> and formed litigation sciences + ibm won the case + the hardest thing in any complex case is to retain <unk> and in some sense your ignorance says mr. <unk> of <unk> <unk> & moore + what you look for in a shadow jury is very much what you do when you give an opening argument to your wife or a friend and get some response to it + a shadow jury is a way to do that in a more <unk> and organized way + the approach worked well in the recent antitrust case in which energy transportation systems inc. sued santa fe pacific corp. over the transport of <unk> coal the kind of case likely to make almost anyone 's eyes <unk> over + energy transportation retained litigation sciences at a cost of several hundred thousand dollars to poll <unk> profile and shadow + just before the actual closing arguments the firm put the case to a vote of the five shadow jurors each of whom was being paid $ N a day + the jurors who did n't know which side had retained them decided for energy transportation and awarded $ N million in damages + the real jury returned days later with a $ N million victory for energy transportation + it 's just like weather forecasting says energy transportation trial attorney harry <unk> of vinson & <unk> + it 's often wrong but it 's better than consulting an indian rain <unk> + forecasting is only one part of litigation sciences ' work + changing the outcome of the trial is what really matters + and to the <unk> some of the firm 's approaches may seem <unk> <unk> + <unk> jurors are supposed to weigh the evidence in a case <unk> and <unk> + instead mr. vinson says interviews with thousands of jurors reveal that they start with firmly entrenched attitudes and try to <unk> the facts of the case to fit their views + pre-trial <unk> helps the consultants develop a profile of the right type of <unk> + if it is a case in which the client seeks punitive damages for example depressed <unk> people are far more likely to grant them + someone with a master 's degree in classical arts who works in a <unk> would be ideal litigation sciences advises + so would someone recently <unk> or <unk> + since litigation sciences generally represents the defense its job is usually to help the lawyers identify and remove such people from the jury + for personal-injury cases litigation sciences seeks defense jurors who believe that most people including victims get what they deserve + such people also typically hold negative attitudes toward the <unk> handicapped the poor blacks and women + the consultants help the defense lawyers find such jurors by asking questions about potential jurors ' attitudes toward volunteer work or toward particular movies or books + litigation sciences does n't make moral <unk> + if a client needs <unk> jurors the firm will help find them + as mr. vinson explains it we do n't control the facts + they are what they are + but any lawyer will select the facts and the strategy to employ + in our system of <unk> the trial lawyer is duty bound to present the best case he possibly can + once a jury is selected the consultants often continue to determine what the jurors ' attitudes are likely to be and help shape the lawyers ' presentation <unk> + logic plays a minimal role here + more important are what lsi calls psychological <unk> a few <unk> points calculated to appeal to the jury on a gut level + in one personal-injury case a woman claimed she had been injured when she slipped in a pool but the fall did n't explain why one of her arms was <unk> <unk> + by repeatedly drawing the jury 's attention to the arm the defense lawyers planted doubt about the <unk> of the woman 's injuries + the <unk> worked + the defense won + in a classic defense of a personal-injury case the consultants concentrate on encouraging the jury to shift the blame + the ideal defense in a case involving an accident is to persuade the jurors to hold the accident victim responsible for his or her plight mr. vinson has written + <unk> graphics <unk> for effectiveness also play a major role in litigation sciences ' operation + studies show the consultants say that people absorb information better and remember it longer if they receive it <unk> + <unk> <unk> help + the average american watches seven hours of tv a day + they are very <unk> sophisticated explains lsi graphics specialist robert <unk> + lawyers remain divided about whether anything is wrong with all this + supporters acknowledge that the process aims to manipulate but they insist that the best trial lawyers have always employed similar tactics + they may not have been able to <unk> it all but they did it says stephen <unk> a legal ethics expert at new york university law school + what you have here is <unk> made <unk> + many lawyers maintain that all 's fair in the adversary system as long as no one <unk> with the evidence + others point out that lawyers in small communities have always had a feel for public sentiment and used that to advantage + litigation consulting is n't a guarantee of a favorable outcome + litigation sciences concedes that in one in N cases it was <unk> wrong in its predictions + a few attorneys offer <unk> stories of jobs <unk> by consultants or of <unk> services as when one lawyer paid a consultant not at litigation sciences $ N to interview a jury after a big trial and later read more <unk> interviews with the same jurors in the american lawyer magazine + some <unk> <unk> at the notion that a sociologist knows more than they do about what makes a jury <unk> + the <unk> of being a trial lawyer is understanding how people of diverse backgrounds react to you and your presentation says barry <unk> of simpson <unk> & bartlett who recently won a huge case on behalf of insurers against shell oil co + he says he used consultants in the case but found them to be virtually <unk> + but most lawyers accept that the marketplace has spoken + and the question remains whether the jury system can maintain its integrity while <unk> such a <unk> massage + for more than a decade mr. <unk> the sociologist has been a leading critic of the <unk> + there 's no reason to believe that <unk> rule <unk> he says + but the last thing you want to do is manipulate the <unk> to make them think better + what you then do is you make them think <unk> + to <unk> the work of litigation scientists he suggests that courts sharply limit the number of jurors that lawyers can remove from the jury panel through so-called <unk> challenges <unk> that do n't require <unk> + in most civil cases judges allow each side three such challenges + for complex cases judges sometimes allow many more + mr. <unk> also suggests <unk> anyone from gathering background information about the jurors + some courts release names and addresses and researchers can drive by houses look up credit ratings and even question neighbors + furthermore he says <unk> should not be allowed to analyze jurors ' <unk> + even some lawyers who have used consultants to their advantage see a need to limit their impact + mr. <unk> the first lawyer to use mr. vinson 's services <unk> against courts ' allowing extensive jury questioning known as <unk> dire or giving out personal information about the jurors + the more extensive the <unk> dire the easier you make it for that kind of research to be effective and i do n't think courts should lend themselves to that mr. <unk> says + silicon graphics inc. a fast-growing maker of computer workstations said it landed two federal government contracts worth more than $ N million over the next five years + one award is part of a department of defense contract to loral <unk> <unk> computers and could be valued at more than $ N million over five years + the other involves the sale of about N of the company 's high-end workstations to the national institutes of health + the models which cost about $ N each will be used in research + the <unk> are evidence that silicon graphics ' approach to computer graphics is catching on with users of powerful desktop computers analysts said + the company 's on a roll said robert <unk> an analyst at hambrecht & quist + no other computer vendor offers graphics performance that good for their price + in the battle to supply desktop computers for researchers and design engineers most of the attention is given to the biggest competitors sun microsystems inc. hewlett-packard co. and digital equipment corp. which make computers mainly aimed at a wide range of engineering and scientific needs + silicon graphics on the other hand has targeted a specific niche since its inception in N which has been dubbed by some as <unk> computing + this is a style of <unk> computing that provides <unk> color models of everything from the inside of a house to the latest in women 's fashion + though silicon graphics is much smaller than digital <unk> and sun it has emerged in recent years as a feared adversary in this graphics portion of the workstation market + in addition the company has made it tough on competitors by offering a stream of desktop computers at sharply lower prices + a year ago silicon graphics introduced a model priced at $ N almost as cheap as mainstream workstations that do n't offer special graphics features + silicon graphics also plans to unveil even less expensive machines in the near future + it 's pretty safe to assume we can bring the cost down of these systems by N N to N N a year said edward <unk> the company 's chief executive officer + silicon graphics ' strategy seems to be paying off + revenue for its first quarter ended sept. N was $ N million a N N increase over the year-ago period + profit was $ N million compared with $ N million for the year-ago quarter + remember those <unk> <unk> refrigerators of N years ago + they or at least something less efficient than today 's <unk> units may soon be making a comeback + that something whatever it is could add as much as $ N to the $ N or so consumers now pay for <unk> refrigerators + these and other expensive changes in products ranging from auto air <unk> to foam <unk> to commercial <unk> are in prospect because of something called the montreal protocol signed by N nations in N + in one of the most sweeping environmental regulatory efforts to date involving products with an annual value of $ N billion in the u.s. alone the <unk> agreed to curtail sharply the use of chlorofluorocarbons cfcs + world-wide production would be cut in half by N + the u.s. senate liked the treaty so well it ratified it by a vote of N to N + not to be <unk> george bush wants cfcs <unk> altogether by the year N a goal endorsed at an <unk> u.n. environmental meeting in <unk> in the spring + that 's a lot of <unk> as it turns out + cfcs are the primary <unk> in a gas often referred to by the du pont trade name <unk> which is <unk> to liquid form to serve as the cooling agent in <unk> and <unk> equipment + <unk> containing cfcs are pumped into <unk> to make the foam used in <unk> <unk> and <unk> + <unk> foam is a highly efficient <unk> which accounts for why the walls of refrigerators and <unk> can be <unk> now than they were back in the days when they were <unk> with glass fiber + but even though by some estimates it might cost the world as much as $ N billion between now and the year N to convert to other <unk> <unk> agents and <unk> and to <unk> equipment for these less efficient <unk> the montreal protocol 's <unk> of supporters say it is worth it + they insist that cfcs are damaging the earth 's <unk> ozone layer which screens out some of the sun 's <unk> <unk> + hence as they see it if something is n't done <unk> will become ever more subject to <unk> and skin cancer + peter teagan a specialist in heat transfer is running a project at arthur d. little inc. of cambridge mass. to find alternative technologies that will allow industry to eliminate cfcs + in addition to his interest in ozone depletion he has <unk> studied the related topic of global warming a theory that <unk> 's generation of carbon dioxide through increased combustion of fossil fuels is creating a greenhouse effect that will work important <unk> changes in the earth 's atmosphere over time + i would be the first to admit that there is not a complete consensus in the scientific community on either one of these problems says mr. teagan + in the kind of literature i read i come across <unk> opinions quite frequently + but the nature of the problem is such that many others feel it has to be addressed soon before all the evidence is in + we ca n't afford to wait + but does it have to be so soon + some atmospheric scientists think that even if cfcs were released into the atmosphere at an accelerating rate the amount of ozone depletion would be only N N by the middle of the next century + it 's easy to get something comparable by simply moving to a higher <unk> in the u.s. + moreover there are questions particularly among atmospheric scientists who know this subject best about the ability of anyone to know what in fact is happening to the ozone layer + it is generally agreed that when cfcs rise from earth to <unk> the <unk> in them is capable of <unk> with the process through which <unk> <unk> split <unk> <unk> and form ozone + but ozone creation is a very large-scale natural process and the importance of <unk> cfcs in reducing it is largely a matter of <unk> + the ozone layer is constantly in motion and thus very hard to measure + what scientists have known since the late 1970s is that there is a hole in the layer over <unk> that <unk> or contracts from year to year + but it is at least worthy of some note that there are very few refrigerators in <unk> + moreover surely someone has noticed that household refrigerators are closed systems running for many years without either the <unk> gas or the <unk> ever <unk> + another argument of the environmentalists is that if <unk> are available why not use them + mr. teagan cites a list of <unk> but none so far match the <unk> <unk> cfcs + <unk> and propane can be used as <unk> for example but are <unk> + moreover new lubricants will be needed to protect <unk> from the new <unk> which as with cfcs are <unk> + mr. teagan points out as well that if the equipment designed to get along without cfcs is less efficient than current devices energy consumption will rise and that will worsen the greenhouse effect + folks in the midwest who just suffered a mid-october <unk> may wonder where the greenhouse was when they needed it but let 's not be <unk> about grave risks + as it happens arthur d. little is not at all interested in throwing cold water on ozone depletion and global warming theories + it is interested in making some money advising industry on how to convert to a world without cfcs + there is after all big money in environmentalism + maybe we should ask why it was that du pont so quickly <unk> and issued a statement giving it wide publicity that it was <unk> cfcs + <unk> introduced in N <unk> america by making <unk> and air <unk> practical after all + one answer is that big companies are growing <unk> of fighting environmental movements and are trying instead to cash in on them although they never care to put it quite that way + du pont as it happens has a potential substitute for cfcs + imperial chemical industries of the u.k. also has one and is building a plant in louisiana to produce it + japanese chemical companies are at work developing their own <unk> and hoping to <unk> new markets of course + there are still others who do n't mind seeing new crises arise + environmental groups would soon go out of business were they not able to send out <unk> describing the latest threat and asking for money to fight it + university professors and consultants with scientific credentials saw a huge market for their services <unk> when price <unk> destroyed the energy crisis and thus the demand for alternative energy + they needed new crises to generate new grants and contracts + in other words environmentalism has created a whole set of vested interests that fare better when there are many problems than when there are few + that tends to tilt the public debate toward solutions even when some of the most knowledgeable scientists are skeptical about the <unk> of the threats and the insistence of urgency + there is an element of <unk> involved + consumers pay the bill for all this in the price of a <unk> or an <unk> car + if they were really getting insurance against environmental disaster the price would be cheap + but if there is no impending threat it can get to be very expensive + but worries about N + with most legislatures <unk> for the year small business is <unk> its <unk> + much of its attention was spent fighting organized labor 's initiatives on issues the small-business community traditionally opposes from raising state minimum wage levels to <unk> benefits in health plans + while results were mixed in many states small business got by fairly well concludes don l. robinson associate director of the national federation of independent business the largest small-business organization + five states oregon <unk> island new hampshire iowa and wisconsin passed bills to boost the minimum wage but measures in N other states were defeated + oregon 's rate will rise to $ N an hour the nation 's highest in jan. N N + iowa 's will be the second highest at $ N an hour in january N but small-business lobbyists won an exclusion for tiny concerns and a lower training rate + in N central states one small-business count shows lawmakers adopted only three of N bills <unk> health coverage or parental leave + the illinois legislature narrowly passed a <unk> bill which gov. james thompson vetoed and iowa and tennessee amended laws to require that employers pay for <unk> <unk> + small business is bracing for an <unk> of similar proposals next year + those kinds of issues always keep coming back says robert <unk> who manages the illinois chamber of commerce 's small-business office + despite victories this year small business fears losing <unk> war + only two states vermont and washington this year joined five others requiring private employers to grant leaves of absence to employees with <unk> or adopted <unk> + similar proposals were defeated in at least N other states + but small business which generally <unk> <unk> benefits has taken note of the growing number of close votes + it 's just a matter of time before the tide turns says one midwestern lobbyist + consequently small business is taking more <unk> steps to counter mandated leaves + in pennsylvania small businesses are pushing for a voluntary alternative they favor a commission that would develop sample leave policies that employers could adopt + they also support a tax credit for employers to offset the cost of hiring and training workers who temporarily replace employees on parental leave + in N the issue is expected to be especially close in alaska california michigan new york pennsylvania and illinois + we 'll be playing a lot of defense especially in the midwest and northeast says jim <unk> of the <unk> + in los angeles more small businesses <unk> adopting a child-care policy + triggering the <unk> is a recent city council decision to give preference in letting city contracts to suppliers with a stated policy on child care for their employees + the <unk> treatment even applies to <unk> small contracts under $ N and consulting and temporary services which often go to the smaller concerns + firms are permitted wide flexibility in the child-care arrangements they provide + council member <unk> <unk> the measure 's chief advocate considers it part of a <unk> policy that makes los angeles a leader in <unk> the workplace + november <unk> will contain few <unk> or initiative issues that especially affect small business + in san francisco small businesses are urging passage of a local initiative to build a new $ N million downtown baseball stadium they believe it will spur retail sales and <unk> business + but in washington state small business generally opposes an initiative to boost spending on children 's programs by $ N million <unk> the state 's N N sales tax will be raised to finance the outlays + dialing dollars + small businesses in suburban chicago are <unk> that an <unk> switch nov. N to N from the familiar N wo n't be without some costs as they alter <unk> among other things and notify customers + <unk> & <unk> a small st. charles law firm plans to mail N customers a list of its lawyers ' new phone and fax numbers as well as <unk> <unk> cards + but many owners plan to practice <unk> crossing out the old code and writing in the new one until their stock runs out + even <unk> operator <unk> smith of <unk> wo n't <unk> his old supply + he reports his business is up slightly from customers replacing old stock + california a <unk> in <unk> rules <unk> a controversy + with some new rules state officials say they made it easier and faster to sell new <unk> whose terms <unk> from those in <unk> contracts + previously regulators insisted that franchisers <unk> such changes with the state a costly process taking at least six weeks + now some negotiated sales that meet a series of tests do n't have to be <unk> + for instance franchisers no longer must <unk> sales to <unk> franchisees who qualify as sophisticated purchasers + such buyers must have a minimum net worth of $ N million $ N annual income or recent experience in the business area of the franchise being sold + but critics consider the changes <unk> + lewis g. <unk> a chicago lawyer who represents franchisers contends california is narrowly limiting rather than expanding opportunities for negotiating sales + he argues california regulators historically have <unk> their law and he says negotiated sales that are n't <unk> have been legal all along + san francisco lawyer timothy h. fine who represents franchisees insists california 's <unk> helps protect franchisees from <unk> sales negotiators who push unlawful <unk> + small talk + a new maryland law <unk> store owners of liability if a customer trips or otherwise gets hurt on the way to the <unk> + only N N of missouri small businesses surveyed say they 've tested an employee or <unk> for drug or alcohol use + by N N tennessee <unk> members favor laws to limit foreign ownership of land and facilities in the state + about N commuters trying to find their way through the bay area 's <unk> transportation system <unk> <unk> into <unk> sat in traffic <unk> on major freeways or waited <unk> for buses yesterday + in other words it was a <unk> manhattan commute + city officials feared widespread gridlock on the first day that normal business operations were resumed following last tuesday 's earthquake + the massive temblor which killed at least N people <unk> the bay bridge a major artery to the east and closed most <unk> leading to and from highway N the biggest artery to the south + it will take several weeks to repair the bridge and several months to repair some of the N connections + but in spite of a <unk> <unk> gridlock never materialized mainly because the bay area rapid transit subway system carried N N more passengers than normal + for the first time in memory it was <unk> only in bart 's <unk> modern <unk> + moreover the two main bridges still connecting san francisco with the east bay did n't charge <unk> allowing traffic to zip through without <unk> + officials also suspect that traffic benefited from steps by major employers to get workers to come in at odd hours or that many workers are still staying at home + many commuters who normally drove across the bay bridge which is shut down for several weeks because of damage to one span actually may have reached work a bit faster on bart yesterday provided they could find a parking space at the system 's <unk> stations + in the best of times the bay bridge is the worst commute in the region often experiencing <unk> of N to N minutes or more + not that getting into town was easy + storm flooding caused <unk> on the freeway and many commuters had to find <unk> to bart 's stations because parking lots were full before <unk> + bus schedules were sometimes in disarray <unk> commuters such as <unk> sullivan + her commute from <unk> calif. normally takes an hour and N minutes via the golden gate bridge which <unk> san francisco with the north bay area + yesterday she was still waiting at a bus stop after three hours trying to transfer to a bus going to the financial district + it 's worse than i thought she said + i do n't know where all the buses are + but while traffic was heavy early in the commute over the golden gate by N a.m. it already had <unk> out + it 's one of the <unk> <unk> i 've ever had said charles <unk> an insurance broker on the bus from mill valley in <unk> county + it looks like a holiday + i think a lot of people got scared and stayed home + however a spokeswoman for bankamerica corp. said yesterday 's <unk> at the bank holding company was no greater than on an average day + at the san mateo bridge which <unk> the san francisco peninsula with the east bay police were surprised at the speed with which traffic moved + everybody pretty much pitched in and <unk> said <unk> <unk> a <unk> with the california highway <unk> + there were many indications that the new work hours implemented by major corporations played a big role + the golden gate handled as many cars as normally yesterday but over four hours rather than the usual <unk> crush + <unk> group inc. the giant closely held engineering concern says it has instituted a N a.m. to N p.m. <unk> arrangement <unk> employees may select any <unk> period during those hours to go to work + of <unk> 's N employees about N work in san francisco one-third of them <unk> from <unk> east bay + pacific gas & electric co. is offering its N san francisco employees a two-tier <unk> schedule either N a.m. to N p.m. or N a.m. to N p.m + the <unk> may cut by almost a third the number of <unk> employees working conventional N hours a spokesman says + some of the utility 's employees may <unk> for a four-day <unk> N hours a day to cut the commute by N N + at pacific telesis group <unk> is left up to individual working groups because some of the telephone company 's employees must be on-site during normal business hours a spokeswoman says + some individuals went to some <unk> on their own to avoid the anticipated gridlock + one senior vice president at <unk> said he got up at N a.m. to drive into san francisco from the east bay + but transportation officials worry that such extraordinary measures and cooperation may not last + although one transportation official said drivers who did n't use car pools were committing an <unk> act about two-thirds of the <unk> crossing the golden gate were alone compared with the normal N N rate + and some commuters relieved by the absence of gridlock were planning to return to their old ways + <unk> kasparov went to combat sunday with the world 's most advanced <unk> computer and kicked it around <unk> anyway like an old <unk> can + playing black in the first game the human champion <unk> deep thought known for its attacking <unk> into a totally passive position + then he <unk> his own <unk> attack + and in the second game with mr. kasparov advancing <unk> as white d.t. offered <unk> resistance and lost even faster + well <unk> can rest easier for now + though almost everybody at the playing site had been looking for the <unk> soviet to beat the <unk> computer he gave the machine a far worse <unk> than many expected + and when mr. kasparov <unk> into the playing hall he called the outcome + as if he were iron mike about to enter the ring with a <unk> <unk> he declared i 'll be able to beat any computer for the next five years + his strategy against d.t. was based on a <unk> study of dozens of its games he said including its notorious <unk> of the <unk> <unk> larsen of <unk> and robert <unk> of the u.s. + mr. kasparov was <unk> + the computer 's mind is too straight too <unk> lacking the <unk> and creativity needed to reach the top he said + the champion apparently was not worried at all about d.t. 's strong points + its chief <unk> <unk> <unk> <unk> <unk> his <unk> the <unk> for its tactical <unk> at <unk> out of horrible positions + d.t. also has a <unk> and <unk> memory is utterly <unk> and could n't be <unk> by the <unk> <unk> <unk> spread around the playing hall in the new york academy of art + in fact d.t. never left home <unk> mellon university in pittsburgh but <unk> with its human <unk> by telephone link + they conceded that the odds favored mr. kasparov but they put their hope in d.t. 's recently enhanced capacity for <unk> positions up to a million per second from N + but the <unk> mistakenly stuck with silicon chips they needed <unk> + this became apparent as game one a <unk> defense by mr. kasparov <unk> + no human can examine millions of moves but mr. kasparov using his <unk> powerful brain consistently found very good ones + after eight moves by each side the board was the same as in a game in which nigel short of great britain fought the champion to a draw in N + but the computer did n't play mr. short 's ninth move a key pawn thrust and its position deteriorated rapidly + instead of <unk> a standard measure to <unk> the king d.t. made a <unk> <unk> maneuver at move N then it put a knight <unk> on move N + only two classes of minds would think of this very weak human players and computers said <unk> <unk> the expert <unk> for the match which was attended by hundreds of <unk> fans + by move N d.t. had fallen into a deep <unk> trap + it allowed mr. kasparov to exchange his <unk> <unk> for one of d.t. 's <unk> + <unk> usually are worth slightly more than <unk> but in this case mr. kasparov was left with a very dangerous knight and d.t. 's surviving <unk> was reduced to <unk> + indeed it looked more like a pawn a tall pawn as <unk> <unk> put it + consistently d.t. was <unk> about its chances which it continually <unk> up in <unk> form + when most <unk> thought its position <unk> the computer thought it was only in effect one-half of a pawn down + such <unk> met with <unk> and kept the machine from resigning as soon as humans would have prompting more <unk> + while d.t. <unk> its king back and forth in a defensive <unk> mr. kasparov <unk> the knight to a dominant <unk> + he also launched a <unk> storm <unk> a pawn to <unk> d.t. 's king + no amount of <unk> could have saved this game for <unk> + a piece down the computer resigned + now with the crowd in the analysis room <unk> <unk> blood the only question seemed to be how fast mr. kasparov could win game two + with the advantage of playing white which moves first mr. kasparov followed up <unk> against the computer 's defense a queen 's <unk> accepted + as early as move six mr. kasparov <unk> from a well-known <unk> of moves developing a knight instead of making a standard <unk> attack against the computer 's advanced knight + this left the computer with a broader range of <unk> replies and it immediately <unk> by moving a <unk> pawn to the <unk> of <unk> development + in a new position just after the opening a computer will have serious problems mr. kasparov said later + in such positions he explained you have to create something new and the computer is n't able to do that right now + after only N moves for each side the computer 's position was shaky + <unk> it grabbed a pawn at the cost of facing a <unk> attack + and when a defensive move was called for d.t. passed up an obvious pawn move and instead exposed its queen to immediate tactical threats + mr. kasparov <unk> later that even a weak club player would have avoided the queen move + now after only a dozen moves <unk> were looking for a <unk> combination + on a demonstration board <unk> <unk> <unk> showed a quick kill initiated by a knight sacrifice no <unk> <unk> this line of play + mr. kasparov 's <unk> was slower but in the end just as deadly + he won d.t. 's queen for two minor pieces and two <unk> not enough compensation in this position to give the computer much hope + in a <unk> position the computer resigned rather than make its <unk> move + and mr. kasparov to <unk> and applause marched back into the analysis room + in both games i got exactly what i wanted he said + what he had demonstrated he added is that there 's more to <unk> than sheer <unk> + <unk> d.t. 's <unk> vowed to press on + indeed three of them will be building a successor machine for international business machines corp + promises <unk> <unk> in three years we 'll mount a better challenge + mr. <unk> is a reporter in the journal 's new york bureau + reaching for that extra bit of yield can be a big mistake especially if you do n't understand what you 're investing in + just ask richard blumenfeld a new jersey <unk> who considers himself a reasonably sophisticated investor + in may N dr. blumenfeld gave merrill lynch & co. about $ N for a federally insured certificate of deposit offering an effective yield of more than N N + it was a time when interest rates came down very rapidly dr. blumenfeld recalls + yields on five-year cds at major banks were averaging about N N and 10-year treasury notes were paying less than N N + the cd seemed like a great deal + but nearly N N years later merrill says the investment is worth about $ N an amount that represents an annual return of just over N N on dr. blumenfeld 's $ N + the problem is that the cd he bought for a retirement plan was n't a plain <unk> cd + instead his merrill broker put him in a zero-coupon cd which is sold at a deep discount to its face value + the difference between the price and the face value payable at maturity is the investor 's return + more important the cd was purchased on the secondary or resale market + because the cd had an effective yield of N N when it was issued in N and interest rates in general had declined sharply since then part of the price dr. blumenfeld paid was a premium an additional amount on top of the cd 's base value plus accrued interest that represented the cd 's increased market value + now the thrift that issued the cd is insolvent and dr. blumenfeld has learned to his surprise that the premium is n't insured under federal deposit insurance + the <unk> came when he opened a recent merrill lynch statement and found that the cd 's estimated current market value had plummeted by $ N in a month + several phone calls and a visit to his broker 's office later the <unk> found out that the $ N drop represented the current value of the premium he paid when he bought the cd and that the amount was n't insured + this is one thing i was never aware of he says + he assumed that principal and interest were fully insured up to $ N he adds + dr. blumenfeld is n't unique + especially at times like these when declining rates make it hard for investors to get yields they have come to expect too many people chase the promise of <unk> returns without fully <unk> the risk + yield greed often gets in the way of understanding things says john <unk> research director of the american association of individual investors a chicago-based educational group + the biggest problem we have is that investors realize after the fact that they did n't understand what they were investing in + dr. blumenfeld concedes he did n't fully understand what he was buying + he says that he knew he was getting a zero-coupon cd and that he had previously invested in <unk> treasury income growth receipts a type of zero-coupon treasury security sold by merrill lynch + but he says he did n't understand he was buying the cd on the secondary market and he contends his broker never fully explained the risks + the broker thomas <unk> of merrill lynch 's morristown n.j. office refuses to discuss the matter with a reporter referring inquiries to merrill lynch officials in new york + those officials say there was full disclosure of the risks in a fact sheet sent to all cd investors with their confirmation of sale + the fact sheet dated april N says on page three if the price paid for a cd purchased in the secondary market is higher than the <unk> value in the case of zero-coupon cds the difference is not insured + <unk> involving zero-coupon cds are more complicated and you should discuss any questions you may have with your financial consultant + dr. blumenfeld says he does n't remember the <unk> about premiums in the fact sheet he received and did n't realize part of what he paid was a premium + i assumed i was buying a cd as a cd he says + nevertheless merrill lynch has agreed that if the thrift that issued dr. blumenfeld 's cd peoples heritage federal savings & loan association in <unk> kan. is liquidated and the cd terminated the brokerage firm would cover the premium dr. blumenfeld paid + federal deposit insurance would pay principal and interest accrued to the date of liquidation to a maximum of $ N + it 's not a blanket commitment it 's a <unk> situation says albert <unk> a managing director of merrill lynch money markets inc + there 's a question whether brokers at the time were fully aware of the risks + we were n't sure that full disclosure as we wanted it was being made + merrill lynch says it 's impossible to estimate how many investors are in dr. blumenfeld 's situation although it says the firm has received only one other complaint about premiums on the secondary market in three years + merrill lynch now provides credit rating information about the institutions whose cds it sells which it did n't provide in N + zero-coupon cds are only a small portion of the $ N <unk> in cds outstanding and those purchased on the secondary market are an even smaller part of the total + merrill lynch estimates that fewer than N financial institutions currently issue zero-coupon cds + still there are several billion dollars of zero-coupon cds with various maturities outstanding + because of the tax consequences of zero-coupon investments income tax is payable in the year interest is accrued although interest is n't actually paid until maturity zero-coupon cds are usually sold for <unk> accounts to finance things like retirement and children 's education + most zero-coupon cds are in maturities of six to nine years and they usually double in value by maturity + but investors who bought zero-coupon cds in the secondary market are n't the only ones who may be surprised to learn the full amount of their investments is n't insured + people who paid a premium for standard cds purchased on the secondary market could also find that those premiums are n't insured if the institutions that issued the cds failed + however those premiums are usually far smaller than on zero-coupon cds and the simpler pricing structure of a standard cd makes it more apparent when a premium is paid + whatever the case a merrill lynch spokesman <unk> investors should n't have to worry about the uninsured premium issue unless the bank or thrift that issued the cd is closed and its deposits paid off before maturity or transferred to another institution at a lower rate + dr. blumenfeld says he 's satisfied that his problem has been resolved + and he says he 's learned a lesson you always have to watch out for yourself + no one else will watch out for you + americans are drinking less but young professionals from australia to west germany are rushing to buy <unk> american <unk> <unk> and other spirits + in particular many are <unk> the <unk> preferred by their parents and <unk> for bourbon the sweet <unk> from the kentucky <unk> + with u.s. liquor consumption declining steadily many american producers are stepping up their marketing efforts abroad + and those efforts are paying off spirits exports jumped more than N N times to $ N million in N from $ N million in N according to the <unk> spirits council of the u.s. a trade group + spirits companies now view themselves as global marketers says michael <unk> president of beverage marketing corp. a research and consulting firm + if you want to be a player you have to be in america europe and the far east + you must have <unk> brands a long-term perspective and deep pockets + the <unk> of the industry has been <unk> by foreign companies ' acquisitions of many u.s. producers + in recent years for example grand metropolitan plc of britain acquired <unk> inc. while another british company guinness plc took over united <unk> group and <unk> industries inc + but the shift has also been fueled by necessity + while <unk> spirits like <unk> <unk> and jack daniel 's whiskey are riding high in the u.s. domestic spirits consumption fell N N to N million cases in N from N million cases in N + in recent years growth has come in the foreign markets + u.s. <unk> exports more than doubled last year to N proof gallons a standard industry measure according to <unk> beverage alcohol group an industry association + exports of <unk> surged N N to N proof gallons + mexico is the biggest importer of both <unk> and <unk> from the u.s. + japan the world 's third-largest liquor market after the u.s. and britain helped american companies in april when it lowered its tax on imported spirits and <unk> a tax on many domestic products + california <unk> benefiting from lowered trade barriers and federal marketing subsidies are expanding aggressively into japan as well as canada and great britain + in japan the <unk> are promoting their products ' pacific roots and <unk> restaurant and hotel chefs whose recommendations carry weight + in australia britain canada and greece brown-forman corp. has increased its marketing of southern comfort <unk> + using <unk> television and print ads the company pitches southern comfort as a grand old drink of the <unk> american south + the biggest foreign <unk> though have been made by bourbon + while u.s. makers of <unk> <unk> and other spirits compete against <unk> abroad trade agreements prohibit any other country from making bourbon + all bourbon comes from kentucky though jack daniel 's tennessee whiskey often is counted as bourbon because of similarity of taste + moreover just as <unk> has acquired an upscale image in the u.s. bourbon has become fashionable in many foreign countries a <unk> american product tied to <unk> <unk> + how was the west won + with a <unk> in one hand and bourbon in the other + we imagine with bourbon the wild west western motion pictures and <unk> appearing says <unk> <unk> vice president of <unk> international corp. a division of <unk> ltd. japan 's largest liquor company + <unk> distributes brown-forman <unk> in japan + bourbon makes up just N N of world-wide spirits consumption but it represented N N of u.s. liquor exports last year according to <unk> no other category had more than N N + big u.s. <unk> are fiercely <unk> for this market which grew to $ N million last year from $ N million in N according to government figures + jim beam brands co. a division of american brands inc. is the leading exporter of bourbon and produces N other types of liquor + the company says it will increase its international advertising N N in N with bourbon representing most of that amount + guinness 's <unk> industries unit has increased its tv advertising in japan and has built partnerships with duty-free shops throughout asia enabling it to install prominent counter displays + the company 's <unk> harper brand is the leading bourbon in japan with N N of the market + bourbon exporters have succeeded in japan where other industries have failed avoiding cultural <unk> in marketing and distribution by <unk> themselves with local agents + jim beam brands has a distribution partnership with <unk> whiskey co. a <unk> + seagram co. which exports four <unk> bourbon has such a link with <unk> brewery co + some bourbon makers <unk> abroad as they do at home + to promote jack daniel 's overseas brown-forman uses the same photos of front <unk> from <unk> va. and <unk> old men in <unk> and <unk> + jim beam print ads however strike different <unk> in different countries + in australia land of the <unk> a <unk> of jim beam lies on a strip of <unk> leather + west germans get <unk> with bourbon in the <unk> and a <unk> beverly hills hotel in the background + ads for england are <unk> and <unk> + one ad features a huge robot carrying a <unk> woman in a <unk> + the <unk> i only asked if she wanted a jim beam + capital cities\/abc inc. 's net income rose N N on a modest N N increase in revenue in the third quarter mainly on strong advertising demand at its abc television network operation + demand for ads also rose at the eight tv stations capital cities owns and at its <unk> espn sports cable channel + the broadcast and publishing company reported net climbed to $ N million or $ N a share from $ N million or $ N a share in the year-earlier period + revenue reached $ N billion from $ N billion + in new york stock exchange composite trading yesterday capital cities closed at $ N down $ N + the broadcasting unit reported operating profit of $ N million up N N from the year-earlier $ N million + publishing reported operating profit was $ N million nearly flat with the <unk> $ N million + revenue at the broadcasting unit consisting of the network and stations advanced N N to $ N million from $ N million + the publishing unit reported revenue edged up N N to $ N million from $ N million + chairman thomas s. murphy cited capital cities ' nine daily newspapers in explaining most of the gain + the parent also publishes <unk> shopping <unk> and specialty magazines + for N 's first nine months capital cities net income grew N N to $ N million or $ N a share from $ N million or $ N a share + revenue eased N N to $ N billion from $ N billion + last week abc <unk> general electric co. 's national broadcasting co. unit as the no. N network as rated by a.c. nielsen co + abc has four shows in the top N including the top show <unk> + as part of a previously announced transaction federal <unk> corp. has bought approximately N shares of its common stock from <unk> inc. at $ N a share + <unk> has agreed not to acquire any securities of <unk> for N years and not to influence company affairs during that period + weyerhaeuser co. said it sold its <unk> business to an affiliate of one of indonesia 's largest <unk> firms + terms of the transaction were n't disclosed + weyerhaeuser said its <unk> business employs about N workers at two facilities in <unk> va. and hancock <unk> + manville corp. said it will build a $ N million power plant to provide electricity to its <unk> pulp and paper mill in brazil + the company said the plant will ensure that it has adequate energy for the mill and will reduce the mill 's energy costs + manville said it expects the plant to begin operating at the end of N + housing and urban development secretary jack kemp called on the federal reserve system to lower interest rates + in a speech to the mortgage bankers association mr. kemp broke the administration 's public <unk> on the fed and complained that interest rates are too high + i am convinced that a monetary policy for this country that would return interest rates to the historical level of N N or N N would have not only an immediate impact on housing starts the housing stock our industry in america the <unk> of our industrial system it would help the third world economies considerably and it would particularly have a favorable impact upon our budget deficit mr. kemp said + the fed recently eased credit by lowering the bellwether federal funds interest rate to N N N from about N N + bush administration officials say inflation is under control + with economic growth slowing they say they believe the fed should ease credit even further + but for the most part officials have avoided <unk> those views in public <unk> they would <unk> <unk> the fed + mcdonald 's corp. said third-quarter earnings rose N N on a hefty sales gain but domestic franchisees apparently did n't <unk> of the improvement + the world 's largest fast-food chain said net income rose to $ N million or N cents a share from $ N million or N cents a share a year ago + in the latest period the company had an average of N million shares N million shares below last year 's level + revenue rose N N to $ N billion from $ N billion + <unk> sales which include sales at franchisee as well as company-owned stores totaled $ N billion compared with $ N billion + but sales for u.s. franchisees were flat at best on a <unk> basis despite weak N figures + compared with the first nine months of last year average franchisee store sales this year were down nearly $ N reflecting a fierce discounting war among fast-food chains + since mcdonald 's <unk> prices rose this year the actual decline may have been more + mcdonald 's closed at $ N up $ N in new york stock exchange composite trading yesterday + while franchisees were having a tough time holding sales mcdonald 's <unk> stores posted hefty gains for the nine months with sales per <unk> unit rising $ N + one analyst noted that the company often has better store locations than do its franchisees thus <unk> promotional efforts + on average in the latest nine months <unk> units in the u.s. had $ N more in sales than did <unk> outlets + there are more than three times as many <unk> domestic outlets as there are company stores + profit margins at u.s. company-owned stores in the quarter were up nearly N N which the company attributed in part to lower food costs + prudential-bache securities analyst leslie <unk> said reduced labor costs helped boost margins although she <unk> that kind of performance is <unk> + calling sales still relatively soft ms. <unk> believes that in real terms u.s. sales slipped N N N to N N at <unk> stores in the quarter + apparently acknowledging weaker u.s. sales <unk> mcdonald 's vowed to use our size and muscle to do all that is necessary to build the brand + overseas both franchisees and the company performed substantially better than a year ago + third-quarter sales in europe were exceptionally strong boosted by promotional programs and new products although weaker foreign currencies reduced the company 's earnings + mcdonald 's said that <unk> sales would have been $ N million greater had N exchange rates remained in effect + going into the fourth quarter the sales comparison will be more difficult predicted restaurant analyst howard <unk> of kidder peabody & co + reflecting better growth prospects abroad mcdonald 's noted that as of sept. N more stores were under construction overseas than a year ago while the opposite was true for domestic expansion + at the end of the third quarter mcdonald 's had N units operating world-wide + in the nine months earnings rose N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + revenue rose N N to $ N billion from $ N billion + carnival cruise lines inc. 's common stock was dragged down yesterday amid concerns that a bankruptcy filing by a finnish <unk> would delay delivery of three big cruise ships + the miami-based company 's stock fell $ N yesterday to $ N a share in heavy american stock exchange composite trading + early yesterday carnival said in a company statement that it had been notified <unk> that waertsilae marine industries the finnish shipyard that is building its three new cruise ships planned to file for bankruptcy + officials at carnival declined to comment + there is just a tremendous amount of uncertainty about what the effect if any of all this is said john p. <unk> an analyst at raymond james associates inc + i did n't even know that a company in a <unk> country could file for bankruptcy + carnival said the fantasy the first of the three $ N million ships that carnival has on order is scheduled to be delivered next month just in time for the winter tourist season in the caribbean + that ship which would carry about N passengers would expand the capacity of carnival 's existing <unk> fleet by N N + the second ship which is <unk> is scheduled to be delivered in fall N and the third in fall N + there 's a N N chance that the fantasy will be delivered close to schedule said <unk> levy an analyst at shearson lehman hutton inc + the others will probably be delivered as well but carnival will likely have to pay a higher price for them + she said the company could pay as much as N N more for the ships + if the ships are n't delivered however it will likely have an effect on the company 's earnings as soon as the N fiscal year which begins dec. N + analysts said those estimates which range from about $ N a share to $ N a share are based on fantasy being in operation in N + if the ship fails to arrive those per-share earnings estimates could be trimmed N cents or more + analysts were n't willing to speculate on how much money carnival might lose through deposits + normally a company pays a portion of the total cost of a ship as it reaches various stages of construction + carnival for example has already paid about $ N million of the total cost for fantasy + some analysts say this may give it the right to seize the ship if the situation warrants it + according to reports from finland waertsilae marine <unk> by conglomerate oy waertsilae filed for bankruptcy yesterday after the shipyard 's contractors had started to demand bank guarantees + the shipyard disclosed in <unk> that it expected losses stemming from a series of unprofitable orders + designer <unk> garratt filed for chapter N bankruptcy code protection saying that her cash flow had been cut off + the designer whose line of <unk> <unk> clothing has spawned a host of <unk> has been in a dispute with her latest <unk> <unk> inc. for several months + ms. garratt was the subject of a wall street journal article in march + the designer 's attorney <unk> <unk> said that ms. garratt was forced to start bankruptcy-law proceedings because <unk> began <unk> her royalty payments last month + <unk> paid ms. garratt royalties for the line known as multiples by <unk> garratt which are sold primarily through department stores + ms. garratt sued the dallas apparel maker earlier this year charging that <unk> developed and marketed clothing lines <unk> after her designs in violation of their contract + that lawsuit is still pending + <unk> could n't immediately be reached for comment + ms. garratt 's assets and liabilities were n't disclosed + eaton corp. had a N N drop in third-quarter profit mainly because of lower sales of truck parts its largest and most profitable single business + sales of medium and <unk> trucks continue to lag <unk> rates leading eaton to expect fourth-quarter net income to fall below year-earlier levels said stephen r. <unk> vice chairman and chief financial and administrative officer + he declined to make a specific earnings estimate + third-quarter net was $ N million or $ N a share from $ N million or $ N a share a year ago + sales rose N N to $ N million from $ N million + the quarter net was below analyst expectations mainly because <unk> sales did n't rebound in september from the summer doldrums as they usually do said patrick e. <unk> analyst with mcdonald & co + mr. <unk> who had been expecting quarter profit of about $ N a share says he is reducing his estimate for the year to the area of $ N a share from his previous estimate of $ N + eli <unk> of painewebber inc. who a couple of weeks ago reduced his N estimate to $ N a share because of the weakening truck market says he will make another cut to about $ N a share in light of the third-quarter report + he said eaton 's quarter profit margin on controls was lower than he anticipated + eaton said sales of truck <unk> <unk> and other parts fell N N to $ N million + sales of parts for cars and construction vehicles rose + eaton does n't provide profit figures separately for each category but operating profit for vehicle parts as a group fell N N to $ N million on an about N N drop in sales to $ N million + mr. <unk> said <unk> operators appear to be cautious about buying new trucks until they see how the economy <unk> + the truck sales slowdown reflects the general slowing in sales of consumer goods he said and the latest reports show a slight improvement rather than any indication of a downward <unk> + operating profit from electrical and electronics controls eaton 's other major business group fell N N to $ N million despite a N N increase in sales to $ N million + the company attributed the decline to weakness in the <unk> market in north america and in the european <unk> market + for the nine months net including profit from discontinued operations both years and in N an extraordinary charge of $ N million related to settlement of a lawsuit was $ N million or $ N a share up N N from $ N million or $ N a share a year ago + eaton earned from continuing operations $ N million or $ N a share down N N from $ N million or $ N a share a year earlier + nine-month sales were $ N billion up N N from $ N billion a year earlier + in new york stock exchange composite trading eaton closed at $ N a share down $ N + in poland 's rapid shift from socialism to an <unk> alternative environmental issues have become a cutting edge of broader movements to restructure the economy cut <unk> <unk> and <unk> local politics + initial steps were taken at poland 's first international environmental conference which i attended last month + the conference held in lower <unk> was <unk> by the environment ministry the rockefeller brothers fund and the polish ecological club and was attended by N poles from government and industry as well as <unk> <unk> russians japanese and americans + the conference was entitled economic <unk> for environmental protection a significant departure from east bloc usage which recognizes only one economic mechanism central planning to direct industrial behavior + even more <unk> it focused on emissions trading and similar market approaches to address pollution notwithstanding poland 's lack of <unk> markets + why did east bloc participants unanimously <unk> <unk> pollution approaches + the answer lies both in the <unk> environment of these countries and the perceived causes of that <unk> + like other east bloc countries poland <unk> environmental laws more <unk> in their breach than in their <unk> + according to a detailed report by <unk> <unk> of the university of minnesota 's <unk> <unk> institute N areas containing a third of poland 's population are regarded as ecological hazards due to multiple violations of standards + <unk> are consistently exceeded at N N of <unk> <unk> monitoring sites and N N of those for dust and <unk> emissions + <unk> of poland 's <unk> have become highly <unk> N N of its southern <unk> are projected to die by century 's end + between N and N polish waters fit for human consumption dropped from N N to N N of all surface waters while those <unk> even for industry use nearly doubled + poland produces about N times more <unk> and five times more <unk> dioxide and solid waste per unit of gross national product than does western europe + its mortality rate for males over N is about N N higher than west germany 's and N N higher in hazard areas than the national average + since N average annual growth rates for most <unk> have <unk> the growth of gnp + conference participants saw these effects as flowing directly from a marxist devaluation of environmental resources which are not produced by labor b planned economies ' inability to control pollution where enterprises are state-owned and penalties are paid by the government and c the continuing <unk> emphasis on heavy industry for economic development producing a far heavier and more <unk> use of energy and natural resources than in the west + they repeatedly noted that environmental progress could not be secured without true ownership genuine competition based on market factors and the risk of bankruptcy if a business makes the wrong decisions + the solutions they formally proposed included <unk> taxes conservation and recycling incentives <unk> <unk> <unk> pollution permits an ecological bank to finance <unk> credits and <unk> swaps + but their most fundamental recommendation was to separate industry from the state making it fully <unk> for pollution control + a revolution takes more than conference <unk> + indeed skepticism was <unk> captured by a joke told by poles at the conference the world must be coming to an end + the russians are talking peace + the <unk> are talking elections + and the poles are engaged in commerce + but the implications of such a shift to market approaches go well beyond the fact that poland is already working on nationwide emissions trades to reduce <unk> pollution or that the soviets plan to introduce <unk> pollution permits in some republics next year + those implications include privatization + faced with a $ N billion foreign debt and <unk> inflation poland must <unk> industry and eliminate subsidies to stabilize its currency and qualify for international assistance + <unk> pollution control may consume some capital that would otherwise purchase state industries + but it could also accelerate <unk> by reinforcing industrial accountability breaking up state monopolies giving managers a stake in solutions and ensuring that modernization is not <unk> for failure to address environmental effects + <unk> solutions + as conferees noted scarce capital means the costs of control must be <unk> through a broad <unk> of compliance choices for individual firms + that means simple clear rules that secure the first large blocks of reduction deferring more complex issues such as risk + it also means use of <unk> pollution limits such as <unk> permits rather than <unk> limits such as <unk> fees + that 's because <unk> managers will likely respond better to quantity than to price signals + creative financing + even <unk> environmental solutions will require billions of dollars + new types of financing must make funds available without <unk> poland 's <unk> reserves + <unk> + east bloc pollution data typically have been state secrets + while polish data have been freely available since N it was no accident that participants urged the free flow of information + for once information flows public participation follows and repression becomes difficult to <unk> + global <unk> + one participant <unk> declared that america has had a free market in goods but a planned economy for environmental protection while poland represents the opposite + his point it will be increasingly difficult for the u.s. to <unk> to <unk> measures if even the east bloc steps to a different <unk> + at the moment poland resembles <unk> pittsburgh more than a modern industrial society with <unk> production inadequate environmental management and little ecological awareness + but the continuing pressures for free-market economics suggest the conference 's vision was not all fantasy + mr. <unk> former head of epa 's regulatory reform staff adapted this from his november column for the journal of the air and waste management association + disappointing earnings news from some technology companies <unk> investors in the over-the-counter market who sold shares of apple computer intel and many other <unk> concerns + the drop in those and other technology stocks contributed to an N N slide by the nasdaq composite index + it finished at N down N + the nervousness about the technology stock outlook also hurt the dow jones industrial average which slipped about N N + mostly because of the sell-off in technology stocks the nasdaq N index of the otc 's largest <unk> issues dropped N to N + the nasdaq financial index of giant insurance and banking issues lost N to N + some traders said the sell-off of technology stocks on low volume reflected a lack of conviction by investors + but charlie <unk> vice president in charge of otc trading at <unk> financial in stamford conn. said the selling was orderly + it 's a quiet retreat said mr. <unk> + it 's nothing dramatic just a routine sell-off + some of it was due to lower-than-expected earnings from leading companies he said + but some of it also represented profit-taking by investors who have made big gains in some issues + yesterday 's volume of N million shares was far below last week 's <unk> average of nearly N million + for october so far daily volume is averaging N million putting it on track to be the year 's busiest month + apple computer which reported lackluster earnings friday lost N N to N N on N million shares + <unk> computer which reported earnings late friday that were in line with a disappointing forecast eased N to N on N shares + investors apparently did n't like the news from rainbow technologies either + it said net income was N cents a share in the third quarter compared with N cents a share a year earlier + rainbow 's stock dropped N to N N + other technology stocks that were weaker included intel which fell N N to N N on N million shares <unk> graphics down N to N N on N million shares sun microsystems which slipped N to N N and mci communications down N to N N + microsoft which last week rose to a record fell victim to profit-taking traders said as it declined N N to N N + conner peripherals was unchanged at N + among takeover stocks jefferson <unk> jumped N N to N N after <unk> holdings said the price to be paid to jefferson <unk> 's minority holders has been raised to $ N a share + the increase of $ N a share is being made to settle shareholder litigation relating to <unk> 's tender offer + <unk> holdings is a new company jointly owned by an affiliate of jefferson <unk> and a morgan stanley limited partnership + the jefferson <unk> affiliate <unk> international <unk> holds about N N of the shares outstanding + these shares will be bought by <unk> holdings at $ N each after the acquisition of the minority shares + another takeover target lin broadcasting eased N to N N on N shares + lin 's suitor mccaw cellular communications dropped N to N on almost N shares + some analysts say investors will begin paying more attention to earnings partly in response to the latest round of disappointments + they say investors will favor companies that historically have posted annual earnings growth of N N to N N + that would be good news for the otc market some analysts say because many small growth stocks are traded there + michael r. <unk> partner in charge of research at robertson <unk> & co. in san francisco said some investors have already made the switch + the robertson <unk> index of N emerging growth stocks is up N N for the year through friday + the rise matches that of the dow jones industrials this year + it 's been a spectacular year for the emerging growth stock investor mr. <unk> said + he predicted that the most popular growth companies will be those with some kind of unique product or franchise that makes them appear able to sustain their momentum + he puts the otc market 's <unk> office club and <unk> on the list + <unk> a maker of electronic patient monitoring systems was up N to N N on N shares yesterday while retailing issue office club was unchanged at N N on N shares + <unk> another retailing stock was off N to N N on nearly N shares + other <unk> of <unk> analysts and money managers also had a mixed session + <unk> american a credit collection concern jumped N N to N N on volume of N and mail boxes etc. a private postal services company advanced N to N N on volume of N + but legent a systems software stock was down N to N N on N shares + <unk> a computer <unk> concern fell N N to N on N shares + elsewhere valley national continued its slide dropping N N to N on N million shares + the arizona banking concern is facing difficulties related to weakness in the real estate market in the state + higher earnings helped some issues + amgen rose N N to N N on almost N shares and <unk> financial jumped N to N on only N shares + why ca n't we teach our children to read write and <unk> + it 's not that we do n't know how to because we do + it 's that we do n't want to + and the reason we do n't want to is that effective education would require us to <unk> some <unk> <unk> <unk> about human nature in general and the human nature of young people in particular as well as to violate some <unk> vested interests + these <unk> so dominate our educational establishment our media our politicians and even our parents that it seems almost <unk> to challenge them + here is an example + if i were to ask a sample of american parents do you wish the <unk> schools to encourage creativity in your children the <unk> answer would be yes of course + but what do we mean specifically by creativity + no one can say + in practice it ends up being <unk> with a <unk> that encourages the youngsters ' <unk> + the result is a generation of young people whose ignorance and intellectual <unk> is matched only by their good opinion of themselves + the whole notion of creativity in education was and is part and parcel of a romantic <unk> against disciplined instruction which was and is regarded as <unk> a repression and frustration of the <unk> <unk> and the wonderful if as yet <unk> <unk> inherent in the <unk> of all our children + it is not surprising that parents find this romantic <unk> so attractive + fortunately these same parents do want their children to get a decent education as traditionally understood and they have enough common sense to know what that demands + their commitment to creativity can not survive <unk> <unk> + american education 's future will be determined by the degree to which we all of us allow this common sense to prevail over the <unk> that we also share + the education establishment will fight against common sense every inch of the way + the reasons are complex but one simple reason ought not to be underestimated + <unk> education as it was once called is far more interesting and <unk> to teachers than is disciplined instruction + it is nice for teachers to think they are engaged in <unk> development and even <unk> to minimize those <unk> tests with often disappointing results + it also provides teachers with a superior <unk> as a profession since they will have passed courses in educational psychology and educational philosophy + i myself took such courses in college thinking i might end up a <unk> + they could all fairly be described as <unk> courses + but it is unfair to dump on teachers as distinct from the educational establishment + i know many <unk> and on the whole they are seriously committed to <unk> teaching + they may not be among the best and <unk> of their generation there are very few such people by definition + but they need not be to do their jobs well + yes we all can remember one or two truly <unk> teachers from our school days + but our education <unk> at the hands of those others who were merely competent and <unk> + in this sense a teacher can be compared to one 's family doctor + if he were brilliant he probably would not be a family doctor in the first place + if he is competent and <unk> he serves us well + our teachers are not an important factor in our educational crisis + whether they are or are not <unk> is a problem of equity it is not an educational problem + it is silly libel on our teachers to think they would educate our children better if only they got a few thousand dollars a year more + it is the kind of libel the teachers ' unions do n't mind spreading for their own narrow purposes + it is also the kind of libel politicians find useful since it helps them strike a friendly posture on behalf of an important constituency + but there is not one <unk> of evidence that other things being equal salary <unk> result in educational <unk> + if there were such evidence you can be sure you would have heard of it + if we wish to be serious about american education we know exactly what to do and just as important what not to do + there are many successful schools scattered throughout this nation some of them in the poorest of <unk> and they are all sending us the same message + <unk> there are the majority of unsuccessful schools and we know which efforts at educational reform are doomed <unk> + we really do know all we need to know if only we could <unk> this knowledge into our thinking + in this respect it would be helpful if our political leaders were <unk> rather than <unk> concerned + they are inevitably inclined to echo the conventional <unk> since this is the least controversial option that is open to them + thus at the recent governors ' conference on education gov. bill clinton of arkansas announced that this country needs a comprehensive <unk> policy for children under five + a comprehensive development policy for governors over N would seem to be a more pressing need + what gov. clinton is <unk> in effect is extending the educational system down to the <unk> years + whether desirable or not this is a child-care program not an educational program + we know that very early exposure to <unk> improves performance in the first grade but afterward the difference is quickly <unk> away + let us sum up what we do know about education and about those education reforms that do work and do n't work parental involvement is a bad idea + parents are too likely to blame schools for the educational limitations of their children + parents should be involved with their children 's education at home not in school + they should see to it that their kids do n't play <unk> they should make certain that the children spend enough time doing <unk> they should <unk> the report card + if parents are <unk> with a school they should have the option of switching to another + community involvement is an even worse idea + here the experience of new york city is decisive + locally elected school boards especially in our larger cities become the <unk> of ambitious generally corrupt and invariably <unk> local politicians or would-be politicians + new york is in the process of trying to <unk> itself from a <unk> commitment to this system of school <unk> even as chicago and other cities are moving to institute it + in most states increasing expenditures on education in our current circumstances will probably make things worse not better + the reason is simple education takes place in the classroom where the influence of money is minimal + decades of educational research tell us <unk> that even smaller classes have zero effect on the academic performance of the <unk> though they may sometimes be desirable for other reasons + the new money flows into the already <unk> administrative structure which <unk> itself <unk> more and more paper work on the teachers + there is neither mystery nor <unk> in the fact that as educational expenditures in real terms have increased sharply in the past <unk> we now spend more per <unk> than any other country in the world educational performance has declined + that is the way the system works + students should move up the educational <unk> as their academic potential allows + no student should be permitted to be <unk> from <unk> school without having <unk> the N r 's at the level that prevailed N years ago + this means tracking whose main purpose is less to permit the <unk> youngsters to <unk> though that is clearly desirable than to ensure that the less <unk> get the necessary <unk> for further study or for entering the modern world of work + the notion that tracking is somehow <unk> is absurd + the purpose of education is to encourage young men and women to realize their full academic potential + no one in his right mind actually believes that we all have an equal academic potential + it is generally desirable to use older <unk> many of them <unk> out of print rather than newer ones + the latter are <unk> trendy often downright silly and at best <unk> + they are based on dubious psychological and <unk> theories rather than on educational experience + one of the reasons american students do so poorly in <unk> tests as compared with british french german or japanese students is the influence of the new <unk> on american <unk> and teaching methods + anyone who wants to appreciate just how bizarre this situation is with students who ca n't add or <unk> learning the conceptual basis of <unk> theory should read the article by <unk> nelson himself a recent <unk> major at harvard in the november american <unk> + most important of all schools should have principals with a large measure of authority over the faculty the <unk> and all matters of student discipline + study after study the most recent from the <unk> institution tells us that the best schools are those that are free of outside <unk> and are <unk> by a powerful head + with that authority of course goes an <unk> accountability + schools that are structured in this way produce students with higher morale and superior academic performance + this is a fact though in view of all the <unk> that are <unk> by this fact it is not surprising that one <unk> so little about it + mr. <unk> an american enterprise institute fellow <unk> the public interest and publishes the national interest + international business machines corp. unveiled a broad strategy to tackle the biggest problem that manufacturers face when <unk> their operations most machines ca n't talk to each other + the company unveiled more than N products mostly software that are designed to integrate the three areas of a manufacturing operation the plant floor design operations and production planning + the aim ultimately is to increase the flow of information into a manufacturer 's main computer network for use in business planning marketing and other operations + manufacturers have already spent so heavily on <unk> that they are one of the computer industry 's leading revenue sources + but many manufacturers find that communication between different computers has been <unk> nearly impossible by the <unk> of computer <unk> used by different machines including robots and machine tools + ibm 's announcement which was expected and will formally be made to customers today also marks an attempt to gain credibility on the plant floor where digital equipment corp. has long dominated and where hewlett-packard co. has recently gained market share + consultants have said that it will take a while for all the pieces of the ibm strategy to fall into place even though the specific products ibm unveiled will generally be available by the end of the first quarter + sam albert a consultant in <unk> n.y. said that in the past ibm has developed broad software strategies only for problems that crossed industry lines + he said he believes ibm 's decision to invest this sort of effort into a single industry showed that it was getting serious about understanding customers ' problems and was n't just selling technology + he said he expects ibm to unveil similar strategies for other industries in coming months + ibm 's push is also unusual in its approach to marketing + rather than just send out marketing people to knock on customers ' doors ibm is making several hundred of its own manufacturing people available to discuss specific needs + ibm 's manufacturing staff also will be able to provide software that ibm has developed <unk> and will be able to form teams with a customer to jointly solve manufacturing problems + ibm can obviously bring its expertise to bear on problems related to computer manufacturing but it could also help customers on software to deal with such things as changes in engineering documents + we may not have every manufacturing problem but we have most said george <unk> ibm 's top marketing official + japan 's big four securities firms posted first-half unconsolidated results that <unk> softer performance as a result of slower turnover on the tokyo stock exchange during july and august + figures for the period ended sept. N for the four largest brokerage firms nomura securities co. daiwa securities co. yamaichi securities co. and nikko securities also reflected a <unk> to a fiscal year ending march N replacing the 12-month term formerly finishing sept. N + as a result brokerage house officials said appropriate comparisons from the same period a year earlier were unavailable + operating profit pretax profit and net income results however were provided for the immediately preceding six-month period + the statistics follow a <unk> rebound in consolidated and unconsolidated results in the full fiscal year ended in march N recovering from dismal results in the prior fiscal year as a result of the october N stock market crash + nomura said its pretax profits inched up N N to N billion yen us$ N billion from N billion yen in the six months ended march N + total operating profit fell N N to N billion yen from N billion yen + net income however rose N N to N billion yen from N billion yen + per-share net rose to N yen from N yen + daiwa said its pretax profits surged N N to N billion yen from N billion yen in the preceding six-month term + operating profit rose N N to N billion yen from N billion yen + net income jumped N N to N billion yen from N billion yen + per-share net rose to N yen from N yen + yamaichi said its pretax profit increased N N to N billion yen from N billion yen + operating profit rose N N to N billion yen from N billion yen + net income surged N N to N billion yen from N billion yen + per-share net rose to N yen from N yen + nikko 's pretax profit rose N N to N billion yen from N billion yen + operating profit rose N N to N billion yen from N billion yen + net income rose N N to N billion yen from N billion yen + per-share net rose to N yen from N yen + <unk> energy corp. of dallas said it will drop its $ <unk> or $ N million offer for tesoro petroleum corp. if the two companies do n't have an agreement to merge by dec. N + <unk> which made its offer in august said it still is awaiting a response to its offer from tesoro 's board + <unk> also said that its financing from bankers trust co. has been extended until dec. N to give tesoro 's board time to consider the offer at a tesoro board meeting scheduled for <unk> + <unk> which owns about N retail gas stations has said it is particularly interested in tesoro 's refinery because it would fill a gap in its business + however tesoro based in houston already has rejected a suitor in the past year + francis d. john <unk> president will assume the additional job of chief executive officer + he succeeds paul j. <unk> N who will remain chairman + national environmental also said it will move its headquarters from <unk> to <unk> pa. the site of its <unk> <unk> facility + national environmental formerly yankee cos. is a <unk> treatment company + eagle clothes inc. which is operating under chapter N of the federal bankruptcy code said it reached an agreement with its creditors + under the accord albert roth chairman and chief executive officer and arthur chase sam <unk> and louis <unk> will resign as officers and directors of the <unk> retailer + mr. roth who has been on leave from his posts will be succeeded by <unk> d. <unk> of <unk> management inc. which is eagle 's crisis manager + mr. <unk> is currently co-chief executive + arnold levine acting co-chief executive will continue as senior vice president and a board member + eagle also said it received a commitment for as much as $ N million in financing from norfolk capital group inc + in addition a norfolk affiliate york capital inc. will purchase all of the interests of eagle 's secured lenders which total $ N million and guarantee as much as $ N million in payments to eagle 's unsecured creditors + a committee representing the unsecured creditors agreed to accept N cents on the dollar eagle said + the plan would extend the period under which eagle has the exclusive right to file a reorganization plan + it would <unk> all of eagle 's existing capital stock and issue new stock to york as sole holder + a bankruptcy court hearing is set for nov. N on these accords + in its bankruptcy-law petition filed in u.s. bankruptcy court in manhattan eagle said its problems began in N and early N when its <unk> lender bankers trust co. reduced its credit line + in september N eagle acquired <unk> clothing inc. a closely held new york chain operated under the bonds name + eagle 's management retired and <unk> 's management took control of the company + at the time eagle reached a new credit agreement with bankers trust and with bank <unk> trust co. of new york for $ N million and a new subordinated debt accord with first century partners and <unk> management for $ N million + but eagle said the financing was insufficient and sales during the past fiscal year sagged + under chapter N a company operates under protection from creditors ' lawsuits while it works out a plan to pay debts + standard & poor 's corp. said it would add john h. <unk> co. an atlanta check printer to its 500-stock index effective at the close of trading on wednesday + american medical international inc. a new york hospital operator will be <unk> from the index at that time + american medical is being acquired + the tougher new regulations under the savings-and-loan bailout law are accelerating the thrift industry 's shrinking act + largely to meet tougher new capital requirements thrifts reduced their assets $ N billion in august by selling such assets as mortgage-backed securities and loans + industry assets as of aug. N were $ N trillion the lowest since august N + as thrifts sell assets to improve their <unk> ratio as required under the new law passed in august they must also reduce liabilities such as deposits + as interest rates paid <unk> were lowered thrift withdrawals exceeded deposits by $ N billion not including interest credited to accounts + it was the third consecutive month in which thrifts shed assets to increase the size of their capital in <unk> to their assets the office of thrift supervision said + the asset <unk> was particularly concentrated in several large california institutions + the <unk> of the thrift industry is well under way said <unk> <unk> an industry consultant in <unk> va + this suggests the bailout law is having a more dramatic effect than anyone would have <unk> so soon + james <unk> an economist with the office of thrift supervision also attributed some of the <unk> to seasonal factors + august is a month when people are paying school tuition he said + that and adjustment to the new law were the biggest factors in the industry + not including thrifts under government conservatorship s&ls reduced their assets by $ N billion from the previous month and deposit outflows totaled $ N billion + for the N insolvent thrifts under government management at the end of august assets declined by $ N billion and withdrawals exceeded deposits by $ N billion + thrifts raised capital mostly by selling mortgages and mortgage-backed securities which were reduced by $ N billion in august from the prior month + as of aug. N thrifts held $ N billion in mortgage-backed securities + the deposit numbers for august marked a swing back to huge outflows after a july net deposit <unk> of $ N million the only net <unk> in more than a year + deposits are n't expected to exceed withdrawals in the foreseeable future as the industry continues to shrink + i think we are going to see deposit <unk> continue unless we see big changes in rates mr. <unk> said + for the first eight months of N thrifts ' withdrawals exceeded deposits by $ N billion + for the prior year deposits exceeded withdrawals by $ N billion + the estimates of real gross national product prepared by the bureau of economic analysis in the department of commerce significantly <unk> the rate of economic growth + since the bureau 's estimates for the business sector provide the <unk> for the productivity ratios calculated by the department of labor underestimated growth rates artificially depress official productivity statistics + if this <unk> is correct it has important implications for <unk> policies it may lower the sense of urgency behind efforts to enact tax incentives and other measures to increase the rate of growth in productivity and real gnp + it would also affect the perceptions of the board of governors of the federal reserve system and the informed public generally as to what <unk> a reasonable degree of price stability + in the early 1980s i predicted a significant acceleration in productivity growth over the rest of the decade + this forecast was based on the apparent reversal of most of the negative forces such as <unk> changes the oil shock and accelerating inflation that had reduced productivity gains in the 1970s + there has indeed been more than a one percentage point improvement in productivity growth since N + but i had expected more which is one reason i began looking at evidence suggesting defects in the official output estimates + the evidence does not clearly support the view that the downward bias in output growth has become greater during the N period but all i am claiming is that the growth trend is <unk> + it is however possible that further study will reveal increasing bias + this bias is in no way <unk> + the <unk> of growth is due largely to the conservative <unk> adopted to deal with deficiencies in basic economic data + the first of three major sources of error is the use of labor input estimates mainly employment or hours instead of output estimates for those sectors such as governments paid household services and private <unk> institutions where there are difficulties in <unk> output data + this means that no allowance is made for possible increases in output per unit of labor + in an unrelated program in which the labor department does estimate output per employee for more than two-thirds of federal civilian employees it found an average annual rate of productivity improvement of N N during the 1980s + even if it is assumed that productivity rose no more than half as quickly in the rest of the <unk> sector this labor department estimate indicates a downward bias in the real gnp estimates of N percentage point a year on average + the federal productivity <unk> use labor input rather than output data for their calculations of half of private financial and service industries as well + independent estimates of output in those industries including one by the department of labor for banking suggests that productivity in finance and services appears to have risen by an average of at least N N a year between N and N + because finance and services contribute N N to final business product missing these productivity improvements <unk> the overall growth rate by N N a year + the second source of error in growth statistics is the use of inappropriate <unk> to adjust for price changes + i estimate that these <unk> as detailed by martin n. <unk> and robert j. gordon add a further N percentage point to the downward bias in the growth rate of real business product + finally the official estimates <unk> growth because they make inadequate allowance for improvements in quality of goods and services + in N a new price index for computers adjusted for changes in performance <unk> was introduced and that resulted in a significantly larger increase in real outlays for durable goods than the earlier estimates had showed + since then further research argues that failure to take account of quality improvements has contributed a total of at least N percentage point to the downward bias in the growth rate + in sum the <unk> <unk> above indicate a N percentage point <unk> in growth of total real gnp + for the private domestic business economy the bias was a bit over N percentage point + in other words the growth rates of both total gnp and real private business product per labor hour have been underestimated by about N N + mr. <unk> is professor <unk> of economics at george washington university + he is co-author of personal productivity how to increase your satisfaction in living <unk> sharp N + union carbide corp. said third-quarter net income plunged N N from a year earlier on weakness in the company 's mainstay chemicals and plastics business + net was $ N million or N cents a share for the quarter compared with $ N million or $ N a share a year ago + sales were $ N billion up N N from $ N billion the previous year + carbide like other companies with a heavy reliance on the so-called commodity end of the chemicals industry was expected to post earnings sharply lower than in an exceptionally strong N third quarter + but the company 's latest quarter was a few pennies a share lower than the more pessimistic projections on wall street + it certainly was n't a disaster but it does show weakness in some of the company 's chief markets said george <unk> a <unk> analyst at oppenheimer & co + in new york stock exchange composite trading carbide closed at $ N a share down N cents + prices for polyethylene a common plastic and an important carbide product started to fall early this year the slide accelerated in the third quarter as buyers continued to trim inventories + prices also fell for <unk> <unk> and <unk> products used in making <unk> + some producers of polyethylene figuring the inventory reductions are near an end have announced price boosts + the first real test of whether prices have hit bottom may come in the next several weeks when the new prices become effective + a carbide spokesman said the conditions are right for the increase to hold + for the third quarter operating profit from carbide 's chemicals and plastics business fell to $ N million from $ N million a year ago before accounting for taxes and interest expense + operating profit from carbon products such as <unk> <unk> also declined to $ N million from $ N million + in the <unk> segment operating profit climbed to $ N million from $ N million + the latest quarter included a gain of about $ N million on the sale of the company 's <unk> <unk> and <unk> <unk> businesses + <unk> <unk> are used in making <unk> products such as <unk> and <unk> <unk> are used in making the <unk> foam found in furniture <unk> and other products + that gain was mostly offset by a loss of about $ N million from a write-down in its <unk> business + <unk> is used in making integrated circuits + for the nine months net totaled $ N million or $ N a share up N N from $ N million or $ N a share a year ago + sales rose N N to $ N billion from $ N billion + at least N states are <unk> drexel burnham lambert inc. 's nationwide effort to settle its legal troubles and some might instead try to revoke the firm 's license to sell securities within their borders + the reluctance of some states to let drexel off the hook could <unk> the firm 's attempts to polish its image after its guilty plea to six <unk> last month say several people familiar with the discussions + up to now drexel has made a <unk> series of settlements with N states and the commonwealth of puerto rico + just yesterday new hampshire announced it made a $ N settlement with drexel a <unk> fine for a <unk> matter in that state + these states have been entering into settlements with drexel as part of the firm 's efforts to operate freely anywhere in the u.s. despite its record as an admitted <unk> + but individuals familiar with the generally successful drexel talks say the firm is meeting resistance from some big states including new jersey new york california pennsylvania connecticut and missouri + officials in some of these states say they do n't want to simply accept the settlements offered by drexel + they question if drexel is getting easier treatment than the many small <unk> firms whose brokerage licenses are routinely <unk> + drexel has to settle with state securities regulators in the wake of its criminal guilty plea and a related civil settlement with the securities and exchange commission that includes payment of $ N million in penalties + these stem from a two-year federal investigation of insider trading and securities fraud on wall street + ohio the district of columbia tennessee and illinois have been less <unk> to drexel than the other six states but nonetheless have refused to settle so far say those familiar with the discussions + drexel says it does n't expect any of its state brokerage licenses will be <unk> and even if some are its securities business would n't be directly hurt + it already has sold its retail or <unk> brokerage network securities firms do n't need brokerage licenses for <unk> activities such as investment banking + still if nothing else a <unk> brokerage license could be a burden because it must be disclosed in many of the transactions in which drexel could be involved + securities regulators <unk> drexel for its energetic effort led by <unk> general counsel saul s. cohen to settle its legal problems with the states + but they disagree about the message these settlements give to the public + there was a lot of internal debate about that specific issue said susan bryant oklahoma 's chief securities regulator and president of the north american securities administrators association which drafted a voluntary settlement plan for the states with drexel + the question she said is whether drexel should be allowed to pay and move on or whether you should simply revoke the license when someone is convicted of a felony + while ms. bryant 's state went ahead and accepted drexel 's settlement offer of $ N she said i do n't have any argument with those who came to different conclusions + i can see both sides + similarly alfred <unk> new hampshire 's director of securities regulation said his state had n't received any complaints about drexel so it really could n't press the issue + still i understand the reasons that other states are holding out he said + mr. cohen the drexel general counsel said i do n't think as we say in investment banking that by the end of the day we 'll be losing any licenses + asked about states that are taking a hard line he said there are states that have asked for additional information which we are providing to them + mr. cohen said more than $ N million has been paid to N states and that drexel still expects to pay out a total of $ N million + by the end of this week drexel should have another three to four settlements mr. cohen said + the rate we 're going i think that by the end of the month we 're looking to have a total of N to N he said + that total would be important for drexel + the investment bank has previously announced that as part of its punishment it would create an independent foundation to promote ethical behavior in the securities industry + a <unk> to that promise is that a minimum of N states reach settlement agreements before next tuesday + there are according to several securities commissioners at least N states that are either close to settlements with drexel or who do n't appear opposed to settling + drexel 's proposed state fines have been based on a state 's population and on the size of drexel 's business in the state + new jersey for example was asked to accept $ N but refused + the state is n't ruling out <unk> drexel 's brokerage license + the state can also bar drexel as an investment adviser + state officials wo n't describe their position in detail but james <unk> smith state securities chief said we really are still looking at it and have informed drexel that the proposal is really not sufficient for settlement + connecticut already has issued a notice of intent to revoke drexel 's brokerage license + it is one of the states that have met with mr. cohen and asked for additional information about investors ' accounts and other matters + this particular issue goes to the very integrity of the <unk> market state banking commissioner howard brown said + a banking department spokesman added commissioner brown does n't feel that money alone is the issue here + particularly touchy are the cases of new york which is drexel 's base and california the base of drexel 's highly profitable junk-bond operation that led to the firm 's legal difficulties + neither state has settled and officials in the two states wo n't discuss their reasons for not doing so + but drexel has made it clear it could mount a significant legal battle in each state if its license is <unk> according to state officials + ms. bryant the head of the state securities group said drexel has done a better job of settling with the states than <unk> hutton did after its guilty plea to a massive <unk> scheme several years ago + still she said drexel 's trouble with some states is n't a bad thing + this process should point out that it 's not going to be easy for a firm that 's convicted of a felony to immediately jump back into the retail business ms. bryant said + we need to have somebody worried so they do n't do this again + these are the N states including the commonwealth of puerto rico that have settled with drexel alaska arkansas delaware georgia hawaii idaho indiana iowa kansas kentucky maine maryland minnesota mississippi new hampshire new mexico north <unk> oklahoma oregon south carolina south <unk> utah vermont washington wyoming and puerto rico + time warner inc. reported a third-quarter net loss of $ N million or $ N cents a share reflecting acquisition costs for a N N stake in warner communications inc. and the purchase method of accounting for the transaction + separately warner reported a net loss of $ N million or N cents a share including merger expenses of $ N million and $ N million in charges associated with <unk> compensation plans + time warner is in the process of completing its acquisition of the remaining warner shares + time warner emphasized in a news release that it should be <unk> based on its cash flow which the company defined as earnings before interest taxes depreciation and amortization + on a <unk> basis assuming the merger was effective jan N N including the results from both time inc. and all of warner that cash flow figure would be $ N million for the latest quarter more than double the comparable figure a year ago or $ N million according to time warner + some analysts at least are buying that argument and were n't alarmed by the losses + what really matters is the operating income of the divisions i look at these numbers and i say these businesses are doing well said mark <unk> a vice president of donaldson lufkin & jenrette securities corp + for example warner made more than $ N million from <unk> entertainment in three months + that 's a big number + warner also had a gain of more than N N from records and music publishing even though the domestic record business was sluggish this summer + in the year-ago third quarter time on its own reported net income of $ N million or $ N a share + combined revenue for the latest quarter of time warner was $ N billion compared with the year-ago time revenue of $ N billion + on a pro <unk> basis including all of warner 's earnings time warner had a third-quarter loss of $ N million compared with a $ N million loss a year earlier + on the same basis revenue rose to $ N billion from $ N billion + for the third quarter warner 's $ N million loss compared with a year-ago loss of $ N million or N cents a share + revenue rose to $ N billion from $ N billion + the N figures were restated to include the results of <unk> <unk> corp. which warner acquired in january + time warner 's operating earnings got a boost from warner 's record <unk> results + batman alone has racked up more than $ N million in <unk> receipts to date making it warner <unk> largest <unk> film ever + <unk> weapon ii was also a big hit + warner also contributed record results from its music business where unit sales of compact <unk> rose more than N N from a year ago the company said helped by prince 's batman <unk> + time warner said its cable division turned in a N N increase in operating cash flow to $ N million from $ N million reflecting higher <unk> revenue + in addition the N results included a $ N million charge reflecting a reserve for relocation related expenses at american television & communications corp + on the other hand time warner said its operating cash flow declined in the quarter for its magazine division its books division and the home box office programming division + in magazines higher advertising revenues at sports illustrated and fortune were offset by lower ad revenue for other major magazines + the programming division saw a decline in operating cash flow because the year-ago quarter included a $ N million dividend from turner broadcasting system and because the quarter includes expenses associated with the nov. N launch of hbo 's comedy channel + in new york stock exchange composite trading time warner closed at $ N a share up $ N while warner closed at $ N a share up N cents + robert j. penn president and chief executive officer will take early retirement from this steelmaker dec N + william s. <unk> chairman said mr. penn N years old would continue as a consultant and would work with the board in <unk> a successor + <unk> recently emerged from bankruptcy-law proceedings that left N N of the <unk> company 's common stock in the hands of <unk> of an <unk> claims trust + the company said it would have no further comment + mr. <unk> N was elected chairman earlier this year by the company 's new board having served as vice president for legal and corporate affairs + his father david s. <unk> was chairman and chief executive until his death in an accident five years ago at which time mr. penn was named president + some house democrats are trying to head off an appointment by president bush to the board that oversees the savings-and-loan bailout <unk> that the prospective <unk> is the head of troubled banks himself + four democrats on the house banking committee sent president bush a letter <unk> their concerns about the expected appointment of james simmons an arizona banker and former <unk> for mr. bush to the oversight board of the resolution trust corp + the oversight board created in the savings-and-loan law signed in august sets policy for the rtc which will sell hundreds of the nation 's sick thrifts and billions of dollars of their assets + treasury secretary nicholas brady federal reserve board chairman alan greenspan and housing and urban development secretary jack kemp are members of the board + president bush must <unk> two other members one a democrat and one a republican + an administration official confirmed last week that mr. simmons the chairman of valley national bank in phoenix is the republican <unk> and that a security clearance was under way + the democratic <unk> has n't been determined the official said + mr. simmons declined to comment and the white house said the congressmen 's letter is under review + the letter dated last thursday cited the losses at valley national and at united bank also of phoenix where mr. simmons was chairman for N years + both banks have been battered as have other arizona banks by falling real estate prices + valley national for example had $ N million in problem assets as of june + we believe that there are numerous other candidates more qualified for this important position and we encourage you to give them your <unk> consideration before making this key rtc appointment the letter said + the rtc needs the most able competent management available + but mr. simmons has long ties to both republicans and banking + he was <unk> of mr. bush 's arizona campaign committee in last year 's election and also worked for mr. bush in the N election + the two met more than N years ago when mr. simmons worked for commercial bank & trust co. of midland texas where mr. bush was an organizing director + in N mr. simmons also served on a committee of businessmen headed by william seidman chairman of the federal deposit insurance corp. and the resolution trust corp + that committee determined to open arizona to banking across state lines + arizona trend magazine referred to mr. simmons this year as one of the N most influential people in the state + the letter to mr. bush was signed by <unk> bruce <unk> d. minn. the chairman of the banking committee 's rtc task force thomas <unk> d. md. <unk> <unk> d. md and paul <unk> d. pa + <unk> w. <unk> a vice chairman of this bank-holding company was named to the additional position of chairman of its principal unit <unk> bank + mr. <unk> N years old will remain president and chief executive officer of the unit + <unk> also named john b. werner a vice chairman of the parent company and the unit and elected him to the newly created position of chief credit officer of <unk> financial increasing the number of corporate board members to N + mr. werner N was formerly senior executive vice president of the parent company and the unit + moody 's investors service inc. said it lowered the debt ratings of certain long-term debt held by this company + the <unk> concern cited the bank 's move into the texas market noting its profitability and capital <unk> measurements will be depressed relative to the bank 's past performance + moody 's also said it raised its rating on the deposit insurance bridge bank now known as bank one texas <unk> reflecting the support of other banking affiliates and substantial assistance for the fdic + officials at the new york bank-holding company were n't available for comment on the <unk> changes + at lloyd 's of london underwriters still <unk> out policies using <unk> <unk> and <unk> paper + visitors are <unk> into the premises by <unk> <unk> known as <unk> a reminder of the insurance market 's <unk> in a <unk> in <unk> century london + such <unk> suggest a <unk> past but give no hint of a troubled present + lloyd 's once a <unk> of the world insurance market is being shaken to its very foundation + the <unk> exchange is battered by enormous claims from a <unk> run of unprecedented disasters the most recent of which is last week 's earthquake in california 's bay area + at the same time lloyd 's is besieged by <unk> investors and <unk> by inefficient but <unk> ways of conducting business + the exchange is gradually being squeezed into narrow <unk> segments of the market by less <unk> competitors + lloyd 's is on the ropes says peter <unk> a lloyd 's investor for N years who now leads a dissident group threatening to sue exchange underwriters for alleged <unk> and negligence + it needs more discipline + it needs to sort itself out + most troublesome is the shrinking pool of names the <unk> investors some of them royal who as members of about N syndicates underwrite policies + some N members quit the exchange last year more than triple the number of resignations in N + names are resigning at an even faster pace this year + lackluster returns are one reason + the average after-tax return on investment in N the most recent year for which results are available was N N according to <unk> ltd. an insurance consulting firm in london + in N it was N N + between N and N the most recent five-year period for which figures are available lloyd 's reported over # N billion in claims and reserves against future losses $ N billion at today 's exchange rates more than double the # N billion posted in the previous five-year period + many of the N investors who remain are beginning to question one of the exchange 's most basic <unk> the concept of <unk> personal liability + investors may reap huge profits when premiums exceed claims but they are liable to their last pound or dollar in the event of a catastrophe + and catastrophes are getting ever more costly + lloyd 's claims for the N <unk> <unk> <unk> disaster in the north sea for instance may reach $ N billion + during the five-year period ended N roughly N N of the names had money tied up in money-losing syndicates according to <unk> consultants + the <unk> of <unk> liability looms large for a number of them now + i have <unk> i could die and be out of it that 's how bad it is <unk> <unk> a secretary from suburban london says + ms. <unk> whose lloyd 's membership was a bonus from a former employer in N belongs to mr. <unk> 's dissident group on the <unk> syndicate which has been hard hit by asbestos reinsurance claims + ms. <unk> who <unk> # N or about $ N of insurance coverage on that syndicate now faces potential losses of roughly # N or $ N + if lloyd 's wants # N out of me they will have to take everything i 've got and even then i do n't know if it will be enough she says + <unk> is widespread among exchange members + i ca n't think of any reason to join lloyd 's now says keith whitten a british businessman and a lloyd 's member since N + the downside is very considerable and at the moment the upside is very marginal + if profits do n't improve mr. whitten says he may quit the exchange + meanwhile competition from rivals <unk> by history is <unk> + lloyd 's is being squeezed out of <unk> but more consistently profitable product lines such as primary property and marine insurance + over the past decade competitors have <unk> away at the exchange 's share of the # N billion marine market in london where half the world 's ships are insured + lloyd 's N N stake in that market has <unk> to N N in that period according to an official at the institute of london underwriters a lloyd 's competitor + the official asked not to be named + much of the business has gone to the institute an association of more than N insurers including cigna corp. allianz <unk> ag of west germany and britain 's commercial union assurance plc + lloyd 's has <unk> decades of <unk> decline + at the peak of its power and influence a century ago lloyd 's dominated the insurance world with a N N stake + it virtually <unk> how ships were to be built and it monitored commerce through a <unk> intelligence network in ports around the globe + today lloyd 's share of the world market excluding life insurance is about N N + its stake is even smaller if life insurance is included + bigger rivals such as aetna and allianz backed by <unk> of <unk> using computers in hundreds of branches operate more efficiently and often can offer lower rates brokers say + though lloyd 's <unk> such <unk> policies as worker 's compensation insurance <unk> insurance for homeowners and businesses and bankers ' liability insurance competitors now underwrite most of that business + beyond that many big oil chemical and airline companies are <unk> off big chunks of the market by <unk> themselves through <unk> offshore companies for <unk> coverage + even lloyd 's specialty unusually risky ventures is being challenged + only N years ago for instance lloyd 's was the <unk> insurer of thoroughbred horses + but since N kirk horse insurance inc. of lexington ky. has grabbed a N N stake of the market + ronald kirk president says lloyd 's has suffered because its structure does n't allow underwriters to deal directly with clients brokers are required <unk> + thus he asserts lloyd 's ca n't react quickly to competition + lloyd 's has lost control of the situation he says + they are n't controlling their <unk> like they used to + murray lawrence lloyd 's chairman agrees the exchange faces big challenges + this is a <unk> time and we are trying to plot our way ahead he says + we have been a great market for <unk> risks which other people then take copy and cut rates + lloyd 's he says is cut off from the vast body of premium down at the bottom end which acts as a <unk> influence against catastrophic losses + by that he means <unk> but <unk> products such as certain types of primary property insurance + the exchange he says must find new products and new markets + that wo n't be an easy task + tradition is dictator at lloyd 's + three years ago the exchange took up residence in a <unk> tower of steel and glass <unk> of the kind of modern architecture that britain 's prince charles has denounced + some exchange <unk> call the building the oil rig + but along with such <unk> <unk> as lord nelson 's <unk> lloyd 's also brought its <unk> ways of doing business + the lloyd 's market actively <unk> insurance just N N hours a day brokers say + underwriting does n't get under way until after morning tea at N a.m + a <unk> lunch break follows + things wind down at about N p.m. just in time for afternoon tea + lloyd 's vast trading hall houses a warren of <unk> desks + the hall 's few computers are used mostly to send messages + <unk> between desks underwriters sit on <unk> surrounded by <unk> of policies + brokers <unk> thick <unk> stand in lines waiting their turn to speak to the underwriters + a broker may have to approach as many as N underwriters who insure the <unk> on behalf of the syndicates + it could take six months for a claim to be paid + the system says nicholas <unk> a lloyd 's broker who left the exchange in N is so <unk> <unk> it drives you mad + some maintain underwriters also have been <unk> + john <unk> a lloyd 's underwriter says he and his fellow underwriters underestimated by as much as N N the premiums they should have charged for property risks from N to N + how <unk> we must have appeared to the outside world how incompetent at risk assessment and evaluation he says + lloyd 's officials decline to comment on the matter + more recently property rates have increased + many at lloyd 's expect the san francisco earthquake will cause the industry to boost rates even further + but it will be years before it is clear whether higher rates will offset the payouts for such disasters + the magnitude of the exchange 's problems may not become known for some time because of lloyd 's practice of leaving the books open for three years to allow for the settlement of claims + lloyd 's only recently reported its financial results for N + that year it posted record pretax profit of # N million a gain it attributes to higher rates and fewer claims + but mr. lawrence says reported profit will be down in N N and N though he declines to specify how steep the decline will be + insurance analysts say the exchange 's downturn in profitability is likely to be <unk> by more than $ N million in aviation losses including the N pan am airline disaster over <unk> scotland and a <unk> chunk of claims from september 's hurricane hugo + lloyd 's says the departures of names is n't likely to hurt its underwriting capacity currently about # N billion + mr. lawrence says the drain of funds has been offset by an increase in investments by the remaining names + meanwhile the exchange has been trying to lower costs + it recently cut its work force by N N or N + but lloyd 's is hampered in its efforts to overhaul operations by its reluctance to <unk> modern technology + mr. <unk> the underwriter <unk> half of his business could be <unk> by computer cutting costs at least N N + though lloyd 's has talked for years about <unk> underwriting transactions the effort has n't gotten very far + competition among underwriters and brokers makes them loath to <unk> price and policy information + both groups <unk> to traditional face-to-face dealings even for routine policies + lloyd 's <unk> bureaucracy also <unk> efforts to update marketing strategies + some underwriters have been pressing for years to tap the <unk> business by selling some policies directly to consumers + lloyd 's <unk> sells only auto insurance directly to the public and such policies are sold only in limited markets such as the u.k. and canada + but such changes must be cleared by four internal committees and dozens of underwriters brokers and administrators before being implemented + the proposal to sell directly to the public remains mired in bureaucratic <unk> + lloyd 's is moving forward on some fronts though + mr. lawrence says the exchange is <unk> some procedures to make <unk> payments on claims + by next year all underwriters will be linked to a communications network that could reduce paper work on claims + japan 's daiwa securities co. named <unk> dozen president + mr. dozen succeeds <unk> <unk> who will become vice chairman + <unk> <unk> retains his title of chairman of daiwa japan 's second-largest securities firm + in japanese firms the president usually is in charge of day-to-day operations while the chairman 's role is more a <unk> one + the title of chief executive officer is n't used + while people within daiwa particularly <unk> expected that mr. dozen N would eventually become daiwa 's president the speed of his promotion surprised many + it was only earlier this year that the <unk> <unk> executive he likes to joke with americans about how his name is <unk> with twelve was appointed deputy president + mr. dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing + daiwa is one of the world 's largest securities firms + as of march N the daiwa group had shareholder equity of N billion yen $ N billion + for the six months ended sept. N daiwa reported unconsolidated parent company net income of N billion yen $ N million on revenue of N billion yen $ N billion + both figures were record highs + several observers interpreted mr. dozen 's appointment as an attempt by daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of japan 's domestic markets which should mean increased competition + all of japan 's so-called big four securities firms nomura securities co. ltd. the world 's largest nikko securities co. ltd. yamaichi securities co. ltd. and daiwa have suffered setbacks in their attempts to break into foreign markets + while they have moved to the <unk> in underwriting fixed-income securities in the <unk> market mostly for japanese firms they have been only marginally profitable if at all in the u.s. + american institutional investors have never had a large appetite for japanese equities + and while the japanese have stepped up their purchases of u.s. shares in the past several months they have shown themselves in the past to be <unk> investors + at the same time daiwa and its <unk> have faced stiff competition from <unk> american competitors that have prevented them from building strong links to u.s. corporations and institutional investors + mr. dozen knows these problems <unk> + when he arrived in the u.s. in N the start of an <unk> tour he tried selling japanese <unk> bonds to u.s. investors + he made desperate efforts using the yellow pages from beginning to end said <unk> <unk> president of daiwa 's u.s. unit + but not a single piece of paper was sold + by his own account mr. dozen did n't do much better with u.s. bonds + in an interview a few months ago he recalled how after some training at salomon brothers inc. he successfully bid for the opportunity to sell portions of N u.s. corporate bond issues + but he could n't sell any + japanese stock salesmen selling american bonds + maybe it 's crazy he said + mr. dozen even related the <unk> suffered when he and two colleagues went on an overnight fishing <unk> off the new jersey shore and caught nothing + upon returning to new york exhausted i got into a <unk> and the woman driver said americans make better <unk> he recalled + <unk> mr. dozen said that daiwa 's goal is to build a high-technology <unk> international organization with maybe some japanese flavor to it + he said that he was particularly interested in his firm gaining expertise in futures options <unk> securities computerized trading and investment systems as well as mergers and acquisitions + mr. dozen said daiwa 's strengths were its large capital base its influential position in the tokyo market and its links to japanese corporations and institutional investors + mr. dozen joined daiwa upon his <unk> from <unk> university in N + like many young <unk> in japanese securities firms he began his career peddling stock to individual investors + in his climb to the top mr. dozen also headed the company 's <unk> division its fixed-income units and its international operations + he was constantly picking up new things to fill out his experience he is very <unk> said <unk> <unk> chairman of daiwa 's u.s. unit in new york + but it mr. dozen 's experience as a salesman that enabled him to gain the political support particularly from the retail sales force to <unk> to the presidency + commission income from domestic stock and bond sales accounts form a large portion of japanese securities companies ' earnings + and anybody who lacked the backing of the retail sales force would be fragile said a daiwa executive + if mr. dozen has a weakness it may be his golf game + he digs in the sand instead of hitting the ball like a farmer said mr. <unk> + inco ltd. posted a N N decline in third-quarter net income a performance that was in line with analysts ' expectations + the nickel producer also raised its quarterly dividend to N cents a share from N cents and said it may buy back as much as N N of its common outstanding + inco shares fell after the announcements + analysts said some investors were disappointed that the <unk> company had failed to announce a special dividend + inco closed at $ N a share down N cents in new york stock exchange composite trading + some analysts said inco which had cash reserves of $ N million as of sept. N could still announce a special dividend in the next few months though it would be smaller than the $ <unk> special dividend it paid last year + the quarterly dividend is payable dec. N to shares of record nov. N + inco 's net fell to $ N million or $ N a share in the third quarter from $ N million or $ N a share a year earlier + sales rose N N to $ N million from $ N million + excluding special gains from tax-loss <unk> earnings in the latest quarter were $ N million or $ N a share compared with $ N million or $ N a share + inco said the drop in earnings resulted mainly from lower nickel prices for the period and a temporary cut in nickel output at the company 's manitoba operations due to high levels of <unk> in the <unk> + inco said it plans to buy back as many as five million common shares over the next N months if nickel market conditions are favorable + under a previous <unk> program inco has purchased N million of its shares since april + ual corp. 's board <unk> any prospects for an immediate revival of a labor-management buy-out saying united airlines ' parent should remain independent for now + as a result ual 's chairman stephen m. wolf pulled out of the buy-out effort to focus on running the company + the two developments put the acquisition attempt back to square one and leaves the airline with an array of <unk> matters including an unsettled labor situation and a management scrambling to restore its damaged credibility + the effort to create the nation 's largest <unk> company began <unk> oct. N when the labor-management group was unable to obtain financing for its $ 300-a-share $ N billion offer + just last week it suffered another major setback when british airways plc the largest equity investor in the labor-management bid withdrew its support + takeover stock traders focusing on the company 's intention to stay independent took the announcement as bad news + ual which had risen $ N to $ N in composite trading on the new york stock exchange on reports of a new bid being prepared by the group reversed course and plummeted in <unk> trading after the N p.m. edt announcement + among the first trades reported by the securities firm of jefferies & co. which makes a market in ual after the exchange is closed were N shares at $ N N shares at $ N N at $ N and N at $ N + the rebound in ual stock during regular trading hours monday was its first daily gain after six consecutive losses left the price N N below its level before oct. N the day the group announced the bank financing could n't be obtained for the original deal + twelve of ual 's outside directors met at a <unk> meeting yesterday in chicago to consider an informal proposal from the buy-out group for a revised bid + but the board said it was n't interested for now + that proposal valued at between $ N and $ N a share would have transferred majority ownership to employees while leaving some stock in public hands + the buy-out group had no firm financing for the plan + and with no other offers on the table the board apparently felt no pressure to act on it + the directors signaled however that they would be willing to consider future offers or take some other action to maximize shareholder value saying they would continue to explore all strategic and financial alternatives + but it was clear that for the time being the board wants the company to return to <unk> + the board said it concluded that the welfare of the company its shareholders its employees and the broader public can best be enhanced by continued development of ual as a strong viable independent company + mr. wolf urged all employees to now turn their full attention to operating the airline + he also vowed to make every effort to <unk> a <unk> new relationship that has been <unk> with participating employee groups + but mr. wolf faces a <unk> task in pulling the company back together again + labor problems top the list + for a brief time the buy-out effort seemed to solve his problems with united 's pilot union + in return for an ownership stake in the company the pilots were willing to agree to a seven-year contract that included a <unk> clause and significant wage concessions and productivity gains the union previously resisted + that contract was tied to the success of the buy-out + as a <unk> measure the pilots had been working four extra hours a month and had agreed to fly ual 's two new boeing N aircraft + it 's uncertain if the pilots will continue to do so without a contract settlement + the union said late last night that it is still committed to majority employee ownership and that the labor disputes that faced the company prior to the buy-out effort still need to be addressed + the buy-out effort also <unk> <unk> relations between united 's pilot and <unk> unions + the machinists ' criticisms of the labor-management bid and their threats of a strike unless they received substantial wage increases this year helped cool banks ' interest in financing the transaction + the machinists previously had shown themselves to be an ally to mr. wolf but he lost much of his credibility with that group when he <unk> up with the pilot union + the machinists criticized the terms mr. wolf and management received in the buy-out + they paid $ N million for a N N stake and received an additional N N of the company at no additional cost + his credibility is also on the line in the investment community + until the collapse of this bid mr. wolf was regarded as one of the nation 's <unk> airline executives after engineering <unk> of tiger international inc. and republic airlines + but he and his chief financial officer john pope <unk> some of the seeds for the deal 's failure by insisting banks accept low financing fees and interest rates while they invested in the transaction only a small fraction of the $ N million they stood to gain from sale of their ual stock and options + the board 's actions leave takeover stock traders nursing some $ N million in losses and eager to respond to anyone who might make a new offer + it also inevitably leaves a <unk> of shareholder lawsuits + arbitragers said they were disappointed the company did n't announce some recapitalization or other plan to maximize value + one takeover expert noted that arbitragers could force a recapitalization through the written consent process under which holders may oust the board by a majority vote + the machinists union has suggested it may propose a recapitalization that includes a special dividend for holders and a minority ownership stake for employees + los angeles investor marvin davis whose $ <unk> offer for ual in august triggered a bidding war says he remains interested in the airline + however he is restricted from making certain hostile moves by an agreement he signed to obtain confidential ual data + essentially he ca n't make any hostile moves unless he makes a tender offer at least $ N a share + tandy corp. said it wo n't join u.s. memories the group that seeks to battle the japanese in the market for computer memory chips + tandy 's decision is a second setback for u.s. memories + last month apple computer inc. said that it would n't invest in the group + apple said that its money would be better spent in areas such as research and development + u.s. memories is seeking major investors to back its attempt to crack the $ N billion market for dynamic random access memory chips a market dominated by the japanese + those chips were in dire shortage last year hurting many u.s. computer companies that could n't get sufficient <unk> chips + tandy said its experience during the shortage did n't merit the $ N million to $ N million investment u.s. memories is seeking from each investor + at this time we elected not to get involved because we have been able to satisfy our need for <unk> from the market as a rule said ed <unk> tandy 's director of market planning + sanford kane u.s. memories president said the decision was disappointing but does n't <unk> u.s. memories ' failure + i would like to have had them he said + but they were n't on my list of companies who were critical to be a part of it + mr. kane became president and chief executive officer of u.s. memories last june when the group was formed by seven electronics companies advanced micro devices inc. digital equipment corp. hewlett-packard co. intel corp. international business machines corp. lsi logic corp. and national semiconductor corp + mr. kane said he expects two or three major corporations to announce their participation in u.s. memories soon after the group <unk> a business plan probably late this week + u.s. memories needs a catalyst he said to <unk> others to join + but so far most potential participants have n't decided + sun microsystems inc. said it 's still actively evaluating u.s. memories and plans to meet with u.s. memories representatives later this week + american telephone & telegraph co. said it was waiting to see u.s. memories ' business plan + personal-computer maker <unk> research inc. said it is still studying the situation + a compaq computer corp. spokeswoman said that the company has n't made a decision yet although it is n't under active consideration + in a startling <unk> members of the senate intelligence committee are complaining that someone in the executive branch is <unk> on them + david boren the intelligence committee chairman is upset that someone <unk> a letter to the committee from the reagan administration suggesting that the u.s. would <unk> to warn panamanian <unk> manuel noriega if it got wind of an impending coup that might result in his assassination + with due respect to highly classified <unk> and other <unk> the <unk> are performing a public service + if the cia has become a protection service for mr. noriega the american people ought to know + what went wrong in panama is a <unk> subject for public and congressional inquiry + naturally senator boren and his committee would like free rein to blame the executive branch while <unk> top secret on their own <unk> + but there 's no danger of <unk> sources and methods in disclosing the debate running up and down pennsylvania avenue + and if congress is going to assume authority to <unk> foreign policy it 's going to have to take some of the responsibility too + the president of the united states urged the panamanian armed forces to move against mr. noriega + when they did his <unk> did n't have the initiative to do more than block a couple of roads + the executive branch bears the first responsibility for <unk> + but what kind of initiative can you expect given the climate set by congress + for example what exactly did the cia tell major <unk> and his fellow coup <unk> about u.s. laws and executive orders on assassinations + what part did u.s. warnings play in the major 's <unk> to pull the trigger when he had general noriega in custody but was under attack by <unk> troops + mr. noriega did n't suffer from any <unk> once he had the <unk> + maybe we need a cia version of the <unk> warning you have the right to <unk> your coup intentions because we may <unk> on you + or maybe a surgeon general 's warning <unk> in the united states may be fatal + cia chief william webster hardly a washington <unk> got the debate started last week by noting that the executive order banning assassinations had contributed to u.s. <unk> during the coup + the cia 's deputy director of operations richard <unk> tried to smooth things over a few days later but instead simply <unk> mr. webster 's point + the interpretation of the executive order mr. <unk> said and the way in which the various committees have over time interpreted it has led in my view to a proper caution on the part of operators including me + in other words congress wo n't let the cia do much of anything anymore and that 's fine with the cia + the pay 's the same and the duty 's lighter + and of course doing anything that might be <unk> by congress carries heavy penalties + witness the <unk> prosecution of <unk> north + the intelligence committee 's ranking republican senator william cohen joined with senator george mitchell to write a best seller about iran-contra <unk> men of <unk> + no doubt many people in the cia the pentagon and the national security council have read it + what kind of initiative should anyone expect from people out on the line who 've read all this and know what can happen if they fail + who wants to end up as the <unk> in a bill cohen <unk> play + the order against assassinations is another <unk> of the same congressional <unk> a product of the 1970s vietnam syndrome against any executive action + president bush would do himself and the country a favor by <unk> the order as an <unk> <unk> on his ability to defend america 's national security + there are of course good reasons the u.s. should n't get into the assassination business but <unk> the executive order is not the same thing as saying the u.s. should start passing out <unk> <unk> + the world being the nasty place it is we want presidents to have the freedom to order operations in which someone might get killed + in such situations you can not write rules in advance you can only make sure the president takes the responsibility + the executive order and the reported agreements with the intelligence committee are neither <unk> nor moral + as it now stands the u.s. can bomb <unk> but ca n't <unk> <unk> <unk> + it can send a fighter <unk> to <unk> terrorist <unk> in the <unk> valley but ca n't shoot <unk> <unk> + both the assassination order and the quality of debate in washington are telling the world that the only way the u.s. will kill a <unk> is by making sure we take some innocent <unk> with him + we 've heard california 's <unk> proposition N blamed for a lot over the years but abc 's ted <unk> came up with a new <unk> in his earthquake coverage last week when he asked democratic <unk> richard katz if <unk> N had withheld money needed for road maintenance + mr. katz <unk> agreed sliding over the fact that california 's roads and bridges are n't funded by property taxes but by state and federal gasoline taxes + both have been raised at least N N in recent years even while the price of gasoline has fallen + dragging <unk> N into this story is a pretty long stretch + a series of explosions <unk> through the huge phillips petroleum co. plastics plant near here <unk> more than a hundred and closing parts of the houston ship channel + there were no immediate reports of deaths but officials said a number of workers were still <unk> for last night + the <unk> okla. oil company late yesterday still had n't said officially what caused the explosions and fires which sent columns of heavy black smoke <unk> high into the air + one local phillips manager said a seal <unk> in one of the plant 's <unk> + glenn cox phillips ' president and chief operating officer and other phillips officials flew from <unk> to assess the damage and determine the cause of the afternoon explosions + in composite trading on the new york stock exchange phillips petroleum shares fell $ N to $ N + the plastics plant is located on an <unk> <unk> in the heart of the petrochemical <unk> that reaches along the u.s. gulf coast + the u.s. coast guard closed six miles of the houston ship channel where about N companies have operations because the thick black smoke <unk> the area + the port of houston closed its terminal for handling bulk cargo + broken water lines and gas leaks <unk> <unk> ' efforts but by late yesterday authorities said they had the fire under control + the <unk> <unk> out windows <unk> debris for miles and <unk> the ceiling in an area <unk> school + the initial <unk> was caught by cameras in downtown houston about N miles away + nearby pasadena texas police reported that N people had been taken to area hospitals but a spokeswoman said that toll could rise + the injured including three in critical condition were treated for burns breathing problems and cuts from flying glass hospital officials said + the plant employs between N and N on three shifts + the number working at the time of the blast was n't known + yesterday 's explosions were the second round in two months at the plastics plant + in late august four contract workers were injured and one phillips employee died after an explosion at a fuel supply line near the facility 's boiler house + the phillips facility manufactures polyethylene <unk> and <unk> plastics used in a wide array of applications including milk <unk> and toys + plastics are the <unk> of phillips ' chemicals operations which is the biggest single <unk> to the company 's profits + a federal judge in manhattan has entered a judgment requiring a chicago organized crime figure to pay the government $ N representing alleged profits he gained from his involvement with the international <unk> of <unk> + manhattan u.s. attorney <unk> <unk> said it was the first time ever that the government had obtained any <unk> from an organized crime figure indicted under the civil racketeering law + joseph <unk> who the government alleged was the <unk> of organized crime in chicago was one of numerous defendants in the government 's sweeping racketeering suit against the <unk> + in the suit filed in june N the government accused the union 's leadership of <unk> its N million members of their rights through a pattern of racketeering + among other things the government claimed that organized crime figures had routinely <unk> the union 's top officials + u.s. district judge david <unk> also permanently <unk> mr. <unk> from any future dealings with the <unk> or any other labor union + mr. <unk> the last of the defendants to settle the suit agreed to pay the government the $ N within one week + exxon corp. said its third-quarter earnings slipped N N as profits from two of its three major businesses sagged + all cleanup costs from last spring 's alaskan oil spill were reflected in earlier results it said + phillips petroleum co. and atlantic richfield co. also reported declines in quarterly profit while ashland oil inc. posted a loss for the latest quarter + <unk> hess corp. and occidental petroleum corp. reported higher earnings + exxon + although exxon spent heavily during the latest quarter to clean up the alaskan <unk> <unk> by its huge oil spill those expenses as well as the cost of a continuing <unk> program are covered by $ N million in charges taken during the first half + an exxon official said that at this time the oil company does n't anticipate any additional charges to future earnings relating to the cleanup of oil <unk> when one of its <unk> <unk> into an <unk> <unk> + she added however that charges already taken do n't take into account the potential effect of litigation involving the oil spill + she said that impact ca n't be reasonably assessed yet + exxon 's net income during the third quarter dropped to $ N billion or N cents a share from $ N billion or N cents a share a year earlier + revenue rose N N to $ N billion from $ N billion + during the third quarter exxon purchased N million shares of its stock at a cost of $ N million + exxon 's profitability like that of many other oil companies was hurt during the third quarter by declining returns from the chemicals and refining and marketing businesses + exxon 's earnings from chemicals operations fell $ N million to $ N million while refining and marketing profits declined $ N million to $ N million + although crude oil prices were significantly higher this year they were n't strong enough to offset the declining profits in those business sectors at most oil companies said william <unk> oil analyst for first boston corp + he estimates that the price of west texas intermediate the u.s. benchmark crude was $ N a barrel higher during the third quarter of this year than in the same period last year + ashland oil + a rash of one-time charges left ashland oil with a loss of $ N million for its fiscal fourth quarter + a year earlier the <unk> earned $ N million or $ N a share + quarterly revenue rose N N to $ N billion from $ N billion + for the year net income tumbled N N to $ N million or $ N a share + the ashland ky. oil company reported a $ N million charge resulting from settlement of a 10-year dispute with the national iranian oil co. over claims that ashland did n't pay for iranian crude it had received + in september ashland settled the <unk> dispute by agreeing to pay iran $ N million + ashland also took a $ N million after-tax charge to cover anticipated costs to correct problems with <unk> built by one of its subsidiaries + the oil <unk> also booked a $ N million charge for selling ashland technology corp. one of its subsidiaries at a loss + <unk> hess + third-quarter earnings at <unk> hess more than tripled to $ N million or N cents a share from $ N million or N cents a share a year earlier + revenue climbed N N to $ N billion from $ N million + profits improved across hess 's businesses + refining and marketing earnings climbed to $ N million from $ N million and exploration and production earnings rose to $ N million from $ N million + hess 's earnings were up despite a $ N million charge to cover the cost of maintaining operations after hurricane hugo heavily damaged the company 's refinery at st. <unk> + it is widely known within industry circles that hess had to buy oil products in the high-priced spot markets to continue supplying its customers + hess declined to comment + phillips petroleum + phillips petroleum 's third-quarter earnings slid N N to $ N million or N cents a share from $ N million or N cents a share + revenue rose N N to $ N billion from $ N billion + shrinking profit margins in chemical and refining and marketing sectors accounted for most of the decline said chairman <unk> <unk> in a statement + despite higher oil prices exploration and production profits were off because of foreign-currency losses and some construction costs incurred in one of phillips ' north sea oil fields + a year ago results were buoyed by a $ N million after-tax gain from an asset sale + occidental petroleum + occidental petroleum 's third-quarter net income rose N N to $ N million or N cents a share from $ N million or N cents a share a year earlier + the latest quarter included an after-tax gain of $ N million from <unk> items + sales dropped N N to $ N billion from $ N billion + the latest period included a $ N million gain from the sale of various oil and gas properties a $ N million charge from the restructuring of occidental 's domestic oil and gas operations and tax credits of $ N million + both periods included <unk> charges of $ N million for early retirement of debt + occidental said oil and gas earnings fell to $ N million from $ N million + the latest period includes net gains of $ N million in <unk> credits from the sale of properties indicating operating losses for the quarter in the oil and gas division + chemical earnings fell N N reflecting softening of demand + atlantic richfield + citing its reduced ownership in the lyondell petrochemical co. atlantic richfield reported that net income slid N N in the third quarter to $ N million or $ N a share from $ N million or $ N a share for the comparable period last year + sales fell N N to $ N billion from $ N billion + arco 's earnings from its N N stake in lyondell fell to $ N million from $ N million for the same period last year when lyondell was wholly owned + offsetting the lower stake in lyondell were higher crude oil prices increased natural gas volumes and higher coke prices the company said + coal earnings rose to $ N million from $ N million + for the nine months arco reported net income of $ N billion or $ N a share up N N from $ N billion or $ N a share a year earlier + sales were $ N billion off N N from $ N billion + jeff rowe contributed to this article + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + imo industries inc. $ N million of senior subordinated debentures due N priced at par to yield N N + the issue will be sold through morgan stanley & co + other details were n't available + san antonio texas $ N million of electric and gas system revenue refunding bonds series N <unk> and <unk> tentatively priced by a first boston corp. group to yield from N N in N to N N in N + the issue includes current interest bonds due N N N N and N and capital appreciation bonds due N + the current interest serial bonds are priced to yield from N N in N to N N in N + there are about $ N million of N N term bonds due N priced to yield N N which is the issue 's high yield + there are also about $ N million of N N N bonds priced to yield N N in N about $ N million of N N bonds priced to yield N N in N and about $ N million of N N bonds priced to yield N N in N + all of the term bonds are original issue discount bonds according to the lead underwriter + the capital appreciation bonds are tentatively priced to yield to maturity from N N in N to N N in N + the bonds are rated double-a by moody 's investors service inc. and standard & poor 's corp + maryland stadium authority $ N million of sports facilities lease revenue bonds series N d due N N N and N tentatively priced at par by a morgan stanley group to yield from N N in N to N N in N + serial bonds are priced to yield to N N in N + there are $ N of N N N bonds priced at par and due N $ N of N N N bonds priced at par and due N and $ N million of N N bonds priced at par and due N + the bonds are rated double-a by moody 's and <unk> by s&p + interest on the bonds will be treated as a preference item in <unk> the federal alternative minimum tax that may be imposed on certain investors + federal home loan mortgage corp. $ N million of remic mortgage securities being offered in N classes by morgan stanley + the offering series N is backed by freddie mac <unk> N N securities and brings freddie mac 's N remic issuance to $ N billion and its total volume to $ N billion since the program began in february N + the offering used <unk> pricing + federal national mortgage association $ N million of remic mortgage securities being offered in N classes by merrill lynch capital markets + the offering series N is backed by fannie mae N N securities + separately a $ N million issue of fannie mae remic mortgage securities is being offered in N classes by bear stearns & co + the offering series N is backed by fannie mae N N securities + finally a $ N million issue of fannie mae remic mortgage securities is being offered in N classes by smith barney harris upham & co + the offering series N is backed by fannie mae N N N securities + the three offerings together bring fannie mae 's N remic issuance to $ N billion and its total remic volume to $ N billion since the program began in april N + credit agricole <unk> french $ N million of N N N bonds due nov. N N priced at N to yield N N annually less full fees via <unk> international ltd + fees N N + <unk> electric power co japan $ N million of N N N bonds due nov. N N priced at N N to yield N N less full fees via yamaichi international europe ltd + fees N N + international finance corp agency N billion pesetas of N N bonds due nov. N N priced at N N to yield N N less full fees via citibank madrid and banco <unk> de <unk> spain + fees N N + royal bank of canada grand <unk> branch canada N million canadian dollars of N N N deposit notes due nov. N N priced at N N to yield N N less full fees via <unk> dominion securities international ltd + fees N N + union bank of finland N million australian dollars of N N bonds due nov. N N priced at N to yield N N less full fees via banque paribas capital markets ltd + fees N + ford motor credit $ N billion of certificates backed by automobile loans with a coupon rate of N N priced at N N to yield N N through an underwriting group headed by first boston corp + the issue is the first by ford motor credit a unit of ford motor co. and the second largest in the four-year history of the $ N billion asset-backed market + the largest issue was a $ N billion offering of <unk> securities by general motors acceptance corp. in N + the ford issue through ford credit <unk> <unk> trust was priced at a yield spread of N basis points above the treasury N N N issue due july N + the offering is rated <unk> by moody 's and double-a by s&p based on the quality of the underlying auto loans and a guarantee covering N N of the deal from ford motor credit + the certificates have an estimated average life of N years assuming monthly prepayments at N N of the original balance + the final maturity is in five years + the mouth is back + <unk> downey jr. who <unk> as a <unk> host and frequently <unk> abused his guests has been signed to <unk> a half-hour <unk> program on the consumer news and business channel the cable channel partly owned by the general electric co. 's national broadcasting co + the premiere of <unk> with mr. downey and richard g. carter a columnist with the new york daily news is scheduled for dec. N at N p.m + cnbc is available to N million cable households + mr. downey said he is not going to change his style which some critics said was flamboyant and others deemed offensive + but i 'm going to proceed in a more logical way + i 'm not going to do anything that is not acceptable in anyone 's home + but that does n't mean i 'm not going to get angry + michael <unk> president of cnbc said that although there will be a studio audience viewers will no longer have to endure the shouting of <unk> <unk> <unk> + but just how does mr. downey 's <unk> style <unk> with the <unk> tone of cnbc 's business programming + <unk> percent of <unk> 's old show fits into our style said mr. <unk> + that is consumer issues + mr. downey 's previous show a one-hour <unk> <unk> <unk> by mca inc. and produced by quantum media inc. was canceled in july after advertisers and stations abandoned it + investors dumped stocks of big companies whose earnings <unk> with the economy + many of those cyclical issues are in the dow jones industrial average which fell N to N + declining issues on the new york stock exchange <unk> advancers N to N + recession fears are <unk> up again among investors + analysts say that the selling of cyclical stocks yesterday will be followed by a sell-off in shares of companies with big debt <unk> on their balance sheets + in an economic slowdown heavy debt <unk> reduce the flexibility of companies because cash that would normally be used to keep the company <unk> must be diverted to interest payments + on the other hand investors beat a clear path yesterday to blue-chip issues with proven earnings growth records + among the N dow industrials they bought mcdonald 's coca-cola co. and procter & gamble and sold aluminum co. of america + in another sign of slowdown fears investors dumped technology shares + many money managers are bracing for a decline in stocks of companies with big debt <unk> on their balance sheets + the junk bond market is being taken apart because of recession fears said j. david mills senior vice president at boston company advisers + under this scrutiny the first thing you do is sell your cyclical stocks and the second thing you do is sell your <unk> companies + in fact much of the buying in blue chips yesterday was a pursuit of companies with lower debt levels + in a recent investment letter entitled winners of the leverage wars edward <unk> chairman of painewebber 's investment policy committee suggested that investors buy stocks of companies that have avoided <unk> up on debt + we 're saying companies have to pay increasing attention to balance sheets said mr. <unk> + he suggested that investors buy the shares of great atlantic & pacific tea j. baker mcdonald 's philip morris and <unk> lee + he said that all of these companies will be able to compete fiercely in an economic downturn + mcdonald 's has long-term debt equaling N N of shareholder equity currently but mr. <unk> said the company is carrying real estate assets at about $ N billion below their real value + coca-cola climbed N N to N N mcdonald 's added N to N N and procter & gamble gained N to N N + <unk> fell N N to N N and j. baker gained N to N N + philip morris slipped N to N N while <unk> lee closed unchanged at N N + according to salomon brothers ' <unk> stock index of N companies whose debt is giant compared with shareholder equity investors are already beginning to retreat from shares of <unk> companies + from january to early september the index of <unk> stocks the tiny portion of equity that 's publicly traded following a recapitalization outperformed standard & poor 's 500-stock index by about N N + but starting in early september the index started to slide and now stands about even with the s&p N + stocks that have a high default risk have started to <unk> those stocks that have a lower default risk said eric <unk> director of <unk> analysis at salomon brothers + companies that have the most exposure to the business cycle have <unk> since late last summer + union carbide whose third-quarter earnings dropped about N N from a year earlier and fell short of analysts ' expectations declined N to N N + also exxon went down N to N N and allied-signal lost N to N N even though the companies ' results for the quarter were in line with forecasts + other weak blue-chip issues included chevron which went down N to N N in big board composite trading of N million shares goodyear tire & rubber off N N to N N and american express down N to N N + texas instruments which had reported friday that third-quarter earnings fell more than N N from the year-ago level went down N N to N on N million shares + motorola another major semiconductor producer dropped N N to N N + pinnacle west capital whose earnings have been hurt by continued problems at its merabank unit fell N N to N N on N million shares to lead the big board 's list of most active issues + growing pressures on the arizona real-estate market are affecting the thrift pinnacle west told dow jones professional investor report it may consider filing for chapter N bankruptcy protection if it ca n't reach an agreement with federal regulators to provide additional capital to merabank + <unk> dropped N N to N N on one million shares about six times its average daily trading volume after a disappointing third-quarter earnings report + merrill lynch and prudential-bache securities both lowered the stock 's investment rating immediately after the results were issued friday according to <unk> + elsewhere in the chemicals sector dow chemical fell N N to N N monsanto lost N N to N <unk> <unk> slipped N N to N N and <unk> slid N to N N + other stocks hurt by <unk> selling included tandy which dropped N N to N and eaton which retreated N N to N N + third-quarter earnings at both companies were below analysts ' forecasts + after declining about N N last week ual advanced N N to N N on N million shares on anticipation of a revised takeover offer from a labor-management group for the parent company of united airlines + however delta air lines fell N N to N N and usair group dropped N to N N + ramada gained N to N N after revamping the terms of its restructuring plan which calls for the company to sell its hotel operations for $ N million and spin off its casino business to shareholders + the revision follows last month 's withdrawal of a $ N million junk-bond offering for the new casino company <unk> corp + mead gained N to N N + usa today reported that the <unk> brothers washington <unk> investors who made an unsuccessful offer to acquire <unk> last year have bought nearly N N of mead 's common shares + entertainment and media stocks generally escaped the market 's slide as well + paramount communications rose N to N N time warner climbed N N to N N walt disney advanced N N to N N mca rose N N to N N and mcgraw-hill added N to N N + the american stock exchange market value index lost N to N + volume totaled N shares + carnival cruise lines class a fell N N to N N + the company said it had been notified <unk> that waertsilae marine industries a finnish shipyard building three cruise ships for the company is having financial trouble and may already have filed for bankruptcy + <unk> and <unk> are the sort of <unk> normally associated with <unk> and <unk> <unk> + who 'd have thought that the next group of tough guys carrying around <unk> like that would be school <unk> + chicago 's new school chief is the <unk> ted <unk> + at his old job in <unk> calif. he took a bitter teachers ' strike and nearly came to <unk> with a <unk> member + at his first chicago press conference he <unk> the reporters + in new york city the new chancellor joseph fernandez has landed like a <unk> shell in the middle of a system that has been <unk> to serious reform + both men fit the mood of the times the mood being one of a public fed up with officials ' <unk> for why their schools do n't work + former patterson n.j. principal joe clark was no doubt the general public 's first experience with this new breed of <unk> administrator + the subject of the movie lean on me mr. clark controlled his school with a <unk> and a baseball bat + he may have gone <unk> in his pursuit of good discipline but is n't it interesting that some of the country 's biggest most troubled school districts are choosing new chiefs from the same <unk> <unk> + <unk> <unk> the woman assigned to run the jersey city school system that was taken over by the state says her top priority will be to cut through the dead hand of bureaucracy + mr. fernandez does n't take control in new york until january but already he 's <unk> the waters + he 's attacked the concept of building tenure one of the most <unk> institutions in american public schools + it means it is virtually impossible to fire or even transfer incompetent principals + once they are in the building they stay + one south bronx principal kept his job for N years despite a serious drinking problem and rarely showing up for work + he was finally given leave when he was arrested for allegedly buying crack + naturally the principals ' union <unk> building tenure and tenure has <unk> previous challenge + we suggest that mr. fernandez find an incompetent principal <unk> him out of the building and let the forces of the status <unk> explain to the parents whatever it is they 're defending + in his old job as <unk> county chief mr. fernandez forced out N teachers and <unk> N principals + he cut the <unk> rate by N N + but the <unk> <unk> are going to have to be <unk> as well incompetent principals and administrators should go but the good ones ought to be left alone + the situation will be especially delicate for mr. <unk> + he takes over a school system in the midst of radical reform + <unk> have just elected N <unk> school boards one for each school + this of course led to disaster in new york city + getting a community of parents to care again about its schools is essential but in chicago the new boards will make mistakes and mr. <unk> will have to identify them + the rise of <unk> such as joseph fernandez and ted <unk> suggests <unk> the process of <unk> in many school systems + the schools ' central mission <unk> children became <unk> by the competing interests of bureaucrats politicians and unions + the classroom itself operated on the <unk> of this awful system discipline collapsed and kids stopped learning + mr. chips was a nice fellow and maybe some day he 'll return + until then it 's clear that some of the people who 've been keeping <unk> schools down are going to be dealing with the <unk> + ingersoll publications co. agreed to buy the new haven register in a transaction valued at $ N million from goodson newspaper group inc + as part of the agreement goodson also terminated the contract under which ingersoll manages goodson 's N newspapers ending a long association between the two companies that has turned increasingly bitter recently + goodson has accused ingersoll of paying less attention to its properties and more to such ventures as the recent launch of the st. louis sun + under the terms of the accord ingersoll will pay about $ N million for the register a daily that goodson bought for about $ N million in N + goodson will pay the additional $ N million in settlement of the management contract + goodson also announced that it hired the former president and senior vice president of ingersoll to run the goodson papers + both executives left the company after <unk> with chairman ralph ingersoll jr + goodson which is based here will use part of the proceeds to pay down debt associated with its purchase of the morristown daily record for $ N million in N + the new jersey paper like the new haven conn. paper was purchased by ingersoll on goodson 's behalf as part of the management contract + industry analysts have said that the purchase price for the paper was too high causing a strain on goodson 's finances + investment bankers familiar with the company said goodson is seeking a new bank credit line of $ N million and may have to sell additional newspapers + david n. <unk> president and chief operating officer of goodson said in a telephone interview that the company does n't currently have any plans to sell additional newspapers + goodson said david carr former president of ingersoll publications and ray <unk> former senior vice president would head the new in-house management team at goodson which had revenue of $ N million in N + the association between the two companies <unk> back <unk> years to a friendship between television producer mark goodson and ingersoll founder ralph ingersoll + the latter 's son ralph ingersoll jr. took over the company and has been managing the goodson properties and acting as an agent in the purchase of newspapers for goodson + but in recent years mr. ingersoll began focusing more on expanding his own newspaper empire in partnership with investment banking firm warburg <unk> & co + ingersoll has N <unk> and N other <unk> papers in the u.s. and europe + the company said its revenue will exceed $ N million this year + ingersoll president robert m. <unk> said in a statement that the company is <unk> by the conclusion of the goodson relationship and will be able to concentrate all our <unk> on ingersoll 's own papers + mr. goodson in his own statement was less upbeat saying unfortunately over the past few years it has become increasingly clear that ralph and i have different <unk> and that he feels more comfortable with a management team whose sole interest and responsibility is in the goodson papers + just five months after ogilvy group was <unk> up in an unsolicited takeover kenneth roman ogilvy 's chairman and chief executive officer said he is leaving to take a top post at american express co + mr. roman N years old abruptly announced he will leave the venerable ad agency whose largest client is american express to become american express 's executive vice president for corporate affairs and communications + he will succeed harry l. freeman N who has said he will retire in december + mr. freeman said in august that he would retire by the end of this year to take executive responsibility for an embarrassing effort to <unk> banker <unk> <unk> + american express representatives apparently influenced the publication of unfavorable articles about mr. <unk> + the company later <unk> and agreed to make $ N million in contributions to charities chosen by him + although mr. freeman is retiring he will continue to work as a consultant for american express on a project basis + ad industry executives were n't surprised by mr. roman 's decision to leave ogilvy + the agency under his direction bitterly fought a takeover attempt by wpp group plc of london before <unk> in may + and although mr. roman and wpp 's chief executive martin sorrell have gone out of their way to be publicly supportive of each other people close to mr. roman say he was unhappy giving up control of the company + some executives also cite tension because of efforts by mr. sorrell a financial man to cut costs at the agency + mr. roman will be succeeded as the head of ogilvy 's flagship ad agency ogilvy & mather worldwide by graham phillips N who had been president of north american operations and who like mr. sorrell is british + alexander <unk> N will take on the newly created position of president of the world-wide agency and chief executive of its international operations + he had been president of the international operations + mr. roman also had <unk> ogilvy group 's two other units the <unk> <unk> <unk> advertising agency and its research division but those units will now report directly to wpp + mr. roman appears <unk> for the american express job + known as a traditional executive he is very much in the conservative american express <unk> + moreover after N years at ogilvy he had <unk> a reputation for being <unk> and a straight arrow which can only help american express in the wake of the <unk> incident + he also is close to american express 's chairman and chief executive officer james d. robinson iii + aside from working with mr. robinson on the american express advertising account for about N years mr. roman serves on several of the same charities and boards as mr. robinson + the abrupt management change sparked widespread speculation that mr. roman had been pushed out of ogilvy 's top spot by mr. sorrell + but mr. roman <unk> denied the speculation saying mr. sorrell had tried several times to persuade him to stay offering various incentives and in one instance sending a note with a case of wine the wine naturally was seagram 's brand an ogilvy client + he asked me not to resign + the implication that i was pushed aside would n't be accurate mr. roman said + mr. sorrell traveling in the far east could n't be reached + mr. roman said american express 's mr. robinson first approached him about the job in late september + according to industry executives peter <unk> a former european community commissioner from ireland was also a serious <unk> for the american express job + although it ultimately was n't offered to him he will be on <unk> to american express as an adviser on international matters + after talking on and off for the past four weeks mr. roman said he agreed to take the job because it 's the right time it 's a <unk> opportunity and i think i leave the company in very strong hands + it was my decision not anyone else 's + mr. roman also brushed aside reports about <unk> between him and mr. phillips his successor at ogilvy + the two executives could hardly be more different + mr. roman comes across as a <unk> executive mr. phillips has a <unk> <unk> + during time off mr. roman tends to his garden mr. phillips <unk> to a <unk> for among other things fast cars and planes + industry executives say that although the two executives used to clash more frequently the wpp takeover brought them closer together + i 'm the guy who made him head of new york head of the u.s. president of north america and recommended him to mr. sorrell as my successor + would i have done all those things <unk> if i did n't think he was the right guy mr. roman asked + he labeled reports of <unk> ridiculous and said that he spent part of the weekend on mr. phillips 's boat in connecticut + mr. roman will oversee american express 's public relations and government affairs among other things but he wo n't be involved in its advertising which is handled by the operating units + i consider this a second career he said + he also will sit on the company 's corporate planning and policy committee made up of the top corporate and operating executives + mr. roman 's departure is n't expected to have any enormous <unk> at ogilvy + american express kraft general foods and mattel executives said the move wo n't affect their relationships with the ad agency + general foods 's relationships with its agencies are based on the agencies ' work and will continue to be said david <unk> a vice president of kraft general foods + but some clients and analysts expressed concern that mr. phillips is n't as well-known to many clients + ken was my key contact said j. nicholas hahn president and chief executive officer of cotton inc. which represents cotton producers + i do n't know mr. phillips all that well + i have n't seen or talked to him in several years + and some analysts questioned whether mr. phillips would have the skills ogilvy needs to turn the agency around + while the agency has done well in many parts of the world its flagship new york office has had a dismal track record recently it has won few new accounts while losing big ones including maxwell house + i think mr. phillips is going to need some help + i think they need creative leadership and i do n't think they have it said <unk> hill an analyst with wertheim & co + ogilvy & mather 's top creative executive norman berry left the agency earlier this year + <unk> berry was a creative <unk> at the company and nobody has filled that <unk> said ms. hill + but other analysts said that having mr. phillips succeed mr. roman would make for a smooth transition + graham phillips has been there a long time knows the culture well is aggressive and apparently gets along well with mr. sorrell said andrew <unk> an analyst with drexel burnham lambert + it 's probably a reasonable transition + hopefully he 'll be the answer to the problems they 've had in new york + sale of saatchi unit close + computer sciences corp. el <unk> calif. said it is close to making final an agreement to buy cleveland consulting associates from saatchi & saatchi + computer sciences would n't disclose the proposed purchase price for cleveland consulting which <unk> companies on <unk> and supply + but david lord managing editor of consultants news an industry publication based in <unk> n.h. said an industry standard would suggest a purchase price of between one and two times cleveland consulting 's approximately $ N million annual revenue + both saatchi & saatchi which announced its intention to sell off most of its consulting business in june and cleveland consulting declined to comment on the proposed sale + ad notes + new account + <unk> corp. new york awarded the ad account for its home insurance co. unit to <unk> kelly & <unk> new york + billings were n't disclosed + puerto rico telephone co. awarded its $ N million account to west <unk> & grey grey advertising 's office in puerto rico + diet coke + coca-cola co. yesterday said singer <unk> john signed to appear in an ad for diet coke + details of the commercial which will be part of the brand 's N advertising campaign were n't disclosed + mr. john becomes the latest of many music stars including george michael and <unk> houston to appear in ads for the diet drink + turner broadcasting system inc. said it formed a unit to make and distribute movies to theaters overseas and eventually to u.s. theaters too + the operator of <unk> networks said the new turner pictures unit will produce movies that will premiere on turner broadcasting 's turner network television channel or <unk> and then will be released internationally in movie theaters + the unit 's first two offerings are slated to be the secret life of ian fleming a <unk> about the former british spy who wrote the james bond novels and <unk> island produced by <unk> <unk> who also stars in the movie + ted turner turner broadcasting 's chairman was named chairman of turner pictures and <unk> <unk> president of turner entertainment networks was named president of the unit + in an interview mr. <unk> said the subsidiary 's primary mission will be to make movies for <unk> and to distribute them internationally + but he said turner broadcasting already has found some ideas that might work well as films for theatrical release in the u.s. + when that occurs and when the time is right we 'll release the films in the u.s. he said adding that turner pictures may develop such movies next year for domestic release in N + turner has made several movies <unk> and <unk> for its networks in recent years but the company has never acted as a <unk> movie studio and released its own pictures to theaters + mr. <unk> said the secret life of ian fleming and <unk> island cost more than $ N million each to make which is only about one-third the cost of most movies made for theatrical release + the turner move is in line with a cable-tv trend toward more original programming and toward finding more ways to <unk> the high cost of producing films + in july viacom inc. formed viacom pictures to produce N <unk> movies a year that will premiere on showtime network and be distributed later in various markets including foreign theaters + in a sign the stock slump has n't <unk> europe 's takeover fever cie financiere de paribas said it intends to bid for one of france 's other large financial and industrial holding companies cie. de navigation mixte + paribas said that once it receives the <unk> from french stock market authorities it will offer to boost its navigation mixte stake to N N from the current N N + its <unk> bid values navigation mixte at about N billion francs $ N billion making this one of france 's <unk> attempted takeovers + the cost of buying the additional N N stake would be N billion francs $ N billion + the move would greatly boost paribas 's stake in the insurance transport and food businesses where navigation mixte is strong + it also would make paribas a major french ally of west germany 's allianz ag insurance group + allianz holds a N N stake in navigation mixte 's insurance interests acquired three weeks ago + those include <unk> <unk> <unk> <unk> and via assurances + long considered a potential takeover target navigation mixte had hoped allianz would help protect it from raiders + that idea may have <unk> + paribas is allianz 's main french bank and the <unk> group said it intends to stay neutral + navigation mixte said it would n't have any comment until its board meets wednesday + but navigation mixte is <unk> held and hard to defend + the defensive options are limited says <unk> <unk> a partner in portfolio management concern france finance <unk> + who would bid against paribas + if the paribas bid succeeds it will be the second time in two months a big french investment banking group has snapped up an insurance group + last month paribas 's archrival cie financiere de suez won a battle for <unk> <unk> france 's second-largest private-sector insurer which itself had just acquired west germany 's <unk> <unk> ag + that complex bid was billed as france 's largest takeover ever this one is slightly smaller + moreover suez had just finished winning an even larger battle last year for control of societe generale de <unk> + paribas officials once considered france 's <unk> bankers felt <unk> at suez 's success and its rapid growth + although paribas denies it analysts say the new bid in part simply reflects the continuing <unk> between france 's two largest investment banking groups + it also reflects the broader pressure on companies in europe to keep up as the european community prepares to reduce internal trade barriers by N + although paribas chairman <unk> <unk> would n't rule out eventually selling all of navigation mixte 's insurance operations to allianz he stressed the potential for the two groups instead to cooperate + he also told reporters the acquisition would give paribas fresh diversity bringing it properties in food and transport where it has been weak + navigation mixte has investments in a sugar company a food and <unk> concern a <unk> and bus and trucking firms among others + and navigation mixte has a huge hidden attraction + payment by allianz for the insurance interests it has just bought will help swell the french concern 's treasury to an estimated N billion francs + paribas said it will bid N francs a share for navigation mixte shares that qualify for a full yearly dividend and N francs for those created july N which are eligible for partial dividends + alternatively it said it would offer three paribas shares themselves eligible for dividends as of next jan. N for one navigation mixte share + paribas shares closed down N francs at N francs and navigation mixte shares were suspended at N francs pending the outcome of the bid + paribas said it would publish details of its bid once authorities clear it + this is one of the first bids under new takeover rules aimed at encouraging open bids instead of gradual accumulation of large stakes + some financial sources said privately that paribas <unk> in failing to move sooner for the insurance and industrial group bidding only after speculation had pushed up the price + mr. <unk> responded that his group initially intended to take only a minority stake striking an alliance with current management + when <unk> <unk> navigation mixte chairman marc fournier rejected paribas 's offer and began buying paribas shares in <unk> mr. <unk> said he felt obliged to bid for control + he told reporters he had information that mr. fournier was preparing to buy as much as N N of paribas up from less than N N currently + a bid against paribas could n't be ruled out + france 's second-largest government-owned insurance company assurances <unk> de france has been building its own navigation mixte stake currently thought to be between N N and N N + analysts said they do n't think it is contemplating a takeover however and its officials could n't be reached + crude oil futures prices fell further as analysts and traders said opec oil producers are n't putting the <unk> on output ahead of the traditionally weak first quarter + in trading on the new york mercantile exchange the u.s. benchmark west texas intermediate crude fell N cents a barrel to $ N for december delivery + petroleum products prices also declined + analysts pointed to reports that the organization of petroleum exporting countries is producing substantially more than its official limit of N million barrels a day with some accounts putting the <unk> group 's output as high as N million barrels a day + that level of production did n't take its toll on futures prices for the fourth quarter when demand is traditionally strong + but because first-quarter demand is normally the weakest of the year several market participants say opec production will have to decline to keep prices from eroding further + the group plans to meet in a month to discuss production strategy for early N + with prices already headed lower news of a series of explosions at a major phillips petroleum co. chemical facility on the houston ship channel also was bearish for prices + even though such facilities use a relatively small amount of crude analysts say now the facility wo n't need any at a time of already high availability + the phillips plant makes polyethylene <unk> and other plastic products + a company official said the explosions began when a seal <unk> out + dozens of workers were injured authorities said + there was no immediate estimate of damage from the company + some petroleum futures traders say technical considerations now will help to put downward pressure on futures prices + for instance one trader said that prices inevitably will go lower now that they 've fallen below $ N a barrel + our <unk> is a little bearish now that we 've taken out $ N he said + in other commodity markets yesterday + copper + the selling that started on friday continued yesterday + the december contract fell N cents a pound to $ N + london metal exchange warehouse stocks were down only N metric tons for the week to N tons expectations late last week were a drop of N to N tons + the new york market made its high for the day on the opening and when it dropped below the $ <unk> level selling picked up as previous buyers <unk> out of their positions and aggressive short sellers anticipating further declines moved in + fund selling also picked up at that point + according to bernard savaiko senior commodity analyst at painewebber the only stability to the market came when short sellers <unk> moved in to cover their positions by buying contracts + this activity produced small rallies which in turn attracted new short selling + mr. savaiko noted that copper had a steep fall in spite of a weak dollar which would normally support the u.s. copper market + such support usually comes from arbitragers who use a strong british pound to buy copper in new york + the sell-off would probably have been worse if the dollar had been strong he said + copper has been stuck in a trading range of $ N to $ N + mr. savaiko believes that if copper falls below the bottom of this range the next significant support level will be about $ N + precious metals + platinum and palladium struggled to maintain their prices all day despite news stories over the weekend that recent cold fusion experiments which use both metals showed signs of producing extra heat + january platinum closed down $ N an ounce at $ N nearly $ N above its low for the day + december palladium was off $ N an ounce at $ N + platinum is believed to have good support around $ N and palladium at around $ N + some traders were thought to be waiting for the auto sales report which will be released today + such sales are watched closely by platinum and palladium traders because both metals are used in automobile <unk> <unk> + mr. savaiko <unk> that the news on cold fusion did n't affect the market yesterday because many traders have already been badly <unk> by such stories + he said the traders are demanding a higher level of proof before they will buy palladium again + also weighing on both metals ' prices is the role of the chief supplier the soviet union + many analysts believe that the soviets ' <unk> for dollars this year to buy grain and other western commodities and goods will bring them to the market whenever prices rally very much + grains and soybeans + prices closed mixed as contracts reacted to largely offsetting bullish and bearish news + on the chicago board of trade soybeans for november delivery closed at $ N a bushel down half a cent while the december wheat contract rose <unk> of a cent to $ N a bushel + supporting prices was the announcement late friday of additional grain sales to the soviet union + but acting as a drag on prices was the improved harvest weather over the weekend and the prospect for continued fair weather this week over much of the farm belt + strong farmer selling over the weekend also weighed on prices + sugar + world prices tumbled mostly from their own weight according to analysts + the march contract ended at N cents a pound down N cent + for the past week or so traders have been expecting india to buy between N and N tons of refined sugar and there have been expectations of a major purchase by japan + but with no reports of either country actually entering the market analysts said futures prices became vulnerable + developing countries such as india some analysts said seem to have made it a point to stay away whenever sugar reached the top of its trading range around N cents and wait for prices to return to the bottom of the range around N cents + but <unk> <unk> a sugar analyst with <unk> <unk> international ltd. said the explanation for the latest drop in sugar prices is much simpler speculators he said got too long too soon and ran into resistance around the old contract highs + a painewebber analyst said that in light of a new estimate of a production increase of four million metric tons and only a modest increase in consumption sugar is n't likely to rise above the top of its trading range without a crop problem in a major producing country + cocoa + futures rallied modestly + the december contract rose $ N a metric ton to $ N near its high for the day + <unk> & <unk> ltd. a british <unk> house estimated that the N world cocoa surplus would be N tons down from N tons for the previous year + market technicians were encouraged by the price patterns which in the past have <unk> sharp rallies + recent prices for cocoa have been near levels last seen in the mid-1970s + at such prices according to mr. savaiko bargain hunting and <unk> buying back of contracts previously sold by speculators is n't uncommon + but mr. savaiko expects <unk> producer selling at around the $ N to $ N level + he also noted that a strong sterling market yesterday might have helped cocoa in new york as arbitragers took advantage of the currency move + <unk> <unk> research analyst at shearson lehman hutton said the market pushed higher mainly in anticipation of a late harvest in the ivory coast a major cocoa producer + rockwell international corp. bought out <unk> corp. 's interest in <unk> a joint venture of the two companies based in tokyo + the price was N billion yen $ N million + the agreement provides that <unk> corp. will remain a supplier to <unk> which makes printing <unk> for the newspaper industry + the purchase was made by rockwell <unk> systems a chicago subsidiary of the el <unk> calif. concern + <unk> which has about N employees is among the industry leaders in <unk> <unk> technology which reduces time and materials waste when preparing a press for printing + the bond market which sometimes <unk> on bad news cheered yesterday 's stock market sell-off and perceptions that the economy is growing weaker + early in the day bonds rose modestly on economists ' forecasts that this week 's slate of economic data will <unk> an economy headed for trouble + such news is good for bonds because economic weakness sometimes causes the federal reserve to lower interest rates in an effort to stimulate the economy and <unk> off a recession + for example today the department of commerce is scheduled to release the september durable goods report + the consensus forecast of N economists surveyed by dow jones capital markets report is for a N N drop in september orders + that would follow a N N advance in august + bonds received a bigger boost later in the day when stock prices moved broadly lower + the dow jones industrial average fell N points to N + bond investors have been watching stocks closely said joel <unk> chief fixed-income analyst at technical data global markets group + when you get a big sell-off in equities money starts to shift into bonds which are considered safer he said + the treasury 's benchmark 30-year bond ended about N point higher or up about $ N for each $ N face amount while the yield slid to N N from N N friday + municipals ended mixed while mortgage-backed and investment-grade corporate bonds rose + prices of high-yield high-risk corporate securities ended unchanged + in more evidence of the growing division between good and bad junk bonds a $ N million issue by imo industries inc. was snapped up by investors while underwriters for beatrice co. 's $ N million issue are considering restructuring the deal to attract buyers + in the treasury market analysts expect bond prices to trade in narrow ranges this week as the market takes in positive and negative news + on the negative side the market will be affected by constant supply in all sectors of the market said william m. <unk> economist at daiwa securities america inc + on the other hand we have economic news that is expected to be relatively positive for the bond market + we will go back and forth with a tilt toward slightly lower yields he said + today the treasury will sell $ N billion of new two-year notes + tomorrow resolution funding corp. a division of a new government agency created to bail out the nation 's troubled thrifts will hold its first bond auction at which it will sell $ N billion of 30-year bonds + so far money managers and other bond buyers have n't shown much interest in the refcorp bonds + analysts have mixed views about the two-year note auction + while some say the auction should proceed smoothly others contend that yesterday 's sale of $ N billion of asset-backed securities by ford motor credit corp. may have <unk> some potential institutional buyers from the government 's note sale + the division of auto maker ford motor co. made its debut in the asset-backed securities market with the second-largest issue in the market 's four-year history + the company offered securities backed by automobile loans through an underwriting group headed by first boston corp + the issue yields N N and carries a guarantee covering N N of the deal from the company + first boston sweetened the terms from the original yield estimate in an apparent effort to place the huge offering + the issue was offered at a yield nearly one percentage point above the yield on two-year treasurys + the only asset-backed deal larger than ford 's was a $ N billion offering by general motors acceptance corp. in N + treasury securities + treasury bonds were N to N point higher yesterday in light trading + the benchmark 30-year bond ended at a price of N N compared with N N friday + the latest 10-year notes were quoted late at N N to yield N N compared with N N to yield N N + the latest two-year notes were quoted late at N N to yield N N + short-term rates rose yesterday at the government 's weekly treasury bill auction compared with the previous bill sale + the treasury sold $ N billion of three-month bills with an average discount rate of N N the highest since the average of N N at the auction on oct. N + the $ N billion of six-month treasury bills were sold with an average discount rate of N N the highest since the average of N N at the oct. N auction + the rates were up from last week 's auction when they were N N and N N respectively + here are auction details + rates are determined by the difference between the purchase price and face value + thus higher bidding narrows the investor 's return while lower bidding widens it + the percentage rates are calculated on a <unk> year while the <unk> yield is based on a <unk> year + both issues are dated oct. N + the 13-week bills mature jan. N N and the 26-week bills mature april N N + corporate issues + investment-grade <unk> closed about N point higher in quiet trading + in the junk bond market imo industries ' issue of 12-year debentures considered to be one of the market 's high-quality credits was priced at par to yield N N + peter <unk> managing director at underwriter morgan stanley & co. said the issue was oversubscribed + it 's a <unk> market and if you have a good strong credit people have an appetite for it he said + morgan stanley is expected to price another junk bond deal $ N million of senior subordinated debentures by continental <unk> inc. next tuesday + in light of the recent <unk> in the high-yield market junk bond analysts and traders expect other high-yield deals to be sweetened or restructured before they are offered to investors + in the case of beatrice salomon brothers inc. is considering restructuring the reset mechanism on the $ N million portion of the offering + under the originally contemplated terms of the offering the notes would have been reset annually at a fixed spread above treasurys + under the new plan being considered the notes would reset annually at a rate to maintain a market value of N + price talk calls for the reset notes to be priced at a yield of between N N N and N N N + mortgage-backed securities + activity in derivative markets was strong with four new real estate mortgage investment <unk> announced and talk of several more deals in today 's session + the federal national mortgage association offered $ N billion of remic securities in three issues and the federal home loan mortgage corp. offered a $ N million remic backed by N N <unk> securities + part of the reason for the heavy activity in derivative markets is that underwriters are <unk> mortgage securities being sold by thrifts + traders said thrifts have stepped up their mortgage securities sales as the bond market has risen in the past two weeks + in the mortgage <unk> sector active issues rose but trailed gains in the treasury market + government national mortgage association N N securities for november delivery were quoted late yesterday at N N up N and freddie mac N N securities were at N N up N + the ginnie mae N N issue was yielding N N to a 12-year average life assumption as the spread above the treasury 10-year note widened slightly to N percentage points + municipals + a $ N million san antonio texas electric and gas system revenue bond issue dominated the new issue sector + the refunding issue which had been in the wings for two months was one of the chief offerings <unk> the market and limiting price appreciation + but <unk> that <unk> failed to stimulate much activity in the secondary market where prices were off N to up N point + an official with lead underwriter first boston said orders for the san antonio bonds were on the slow side + he attributed that to the issue 's aggressive pricing and large size as well as the general <unk> in the municipal marketplace + in addition he noted the issue would normally be the type purchased by property and casualty insurers but recent disasters such as hurricane hugo and the northern california earthquake have stretched insurers ' resources and <unk> their demand for bonds + a $ N million maryland stadium authority sports facilities lease revenue bond issue appeared to be off to a good start + the issue was oversubscribed and doing very well according to an official with lead underwriter morgan stanley + activity <unk> in the new york city bond market where heavy investor selling last week drove yields on the issuer 's full faith and credit backed bonds up as much as N percentage point + foreign bonds + japanese government bonds ended lower after the dollar rose modestly against the yen + the turnaround in the dollar fueled bearish sentiment about japan 's bond market + the benchmark no. N N N bond due N ended on brokers ' screens at a price of N off N + the yield rose to N N + west german bond prices ended lower after a day of <unk> trading + the benchmark N N bond due october N fell N point to N to yield N N while the N N N notes due july N fell N to N to yield N N + british government bonds ended slightly higher in quiet trading as investors looked ahead to today 's british trade report + the benchmark N N N treasury bond due N rose N to N N to yield N N while the N N issue of N rose N to N N to yield N N + the <unk> 's done gone from the hook + damn + my language sure goes to pot down here on the coast + the <unk> <unk> guide with the <unk> cap <unk> his face in <unk> <unk> + i got to get back to school and <unk> out my english + he has two more years at texas <unk> + right now he takes people out to fish in the <unk> behind the barrier islands that curve for hundreds of miles along the eastern coast of texas <unk> <unk> green <unk> behind <unk> of sand and <unk> <unk> that <unk> the deep blue of the gulf beyond + there have been three days of hot <unk> rain and now with the first sun we are after <unk> <unk> which with <unk> provides most of the game fishing <unk> + the little radio <unk> as other <unk> want to see if we have found any fish <unk> location is everything in this sport + negative answers <unk> back + the fish often are <unk> around the <unk> of the old gas wells that <unk> the flat surface like the remains of <unk> ships + we go from one to the other + the sun is hot now though it 's only N in the morning + the great silver clouds on the horizon build themselves on the pale water + we cruise toward another set of <unk> + the guide <unk> into a <unk> and puts a <unk> <unk> <unk> on the hook + then he <unk> out + just wait for that <unk> that <unk> + it comes real <unk> before it pulls + do n't forget <unk> have very soft <unk> + the radio <unk> again + <unk> one or two says the guide <unk> + you can tell they 've got <unk> + a pair of black <unk> <unk> past close to the surface + soon we have our limit of the <unk> fish <unk> in <unk> and black + and we are the first back at the <unk> where the great blue <unk> stand waiting by the cleaning <unk> + the guide is young and he knows this business but he wants a different life after college such as working for ibm and wearing a <unk> + this must be the last big stretch of the american <unk> that is undeveloped + there are a few <unk> fishing towns with quiet <unk> of resort houses nearby + people are not apt to be <unk> about the place or themselves + texas is big and beautiful and they live here that 's all + <unk> out just to the north of us is the <unk> peninsula after the oak not the game which forms the core of the <unk> wildlife refuge + it is famous as the winter home of the whooping crane that symbol of the destruction of wild america + last year a <unk> shot a <unk> by mistake thinking that it was a snow <unk> + he paid an <unk> fine and was lucky according to a local <unk> to escape the gas chamber + the peninsula comes off the vast <unk> <unk> plain with fields of rice and cotton and <unk> as far as the eye can see + near the coast there are <unk> <unk> of live oak <unk> with <unk> and <unk> + <unk> wild <unk> <unk> and <unk> are the <unk> <unk> and the birds are <unk> especially the <unk> and the <unk> + above the <unk> of <unk> and <unk> <unk> the <unk> and golden <unk> <unk> <unk> on its <unk> <unk> + inland a few miles from the refuge there is a place called <unk> with a white church a gas station and a grocery the houses relatively close together for such a settlement in these parts + <unk> motel i read a sign in the usual <unk> of the name as we <unk> through + here in south texas we say <unk> my host gently <unk> + mr. king is the director of the foreign press center in new york + <unk> ag and siemens ag said they will launch their previously announced joint venture for power semiconductors in january + the two west german electronics concerns said they have set up european power semiconductor co. to merge their activities in the field + <unk> and siemens each will hold a N N stake in the venture + the joint venture will have nominal capital of N million marks $ N million and N employees + it will develop produce and market <unk> electronic parts + siemens is west germany 's largest electronics group + <unk> is N N owned by daimler-benz ag the country 's biggest industrial concern + <unk> corp. said its third-quarter net income fell N N to $ N million or N cents a share from $ N million or $ N a share a year earlier + sales dropped N N to $ N billion from $ N billion + the company which supplies <unk> and other <unk> parts to auto makers said about half the earnings drop came from the <unk> collapse of the <unk> auto industry + the <unk> currency plummeted this year making it difficult for auto makers there to afford imported parts + <unk> also said it was hurt by <unk> u.s. truck sales and by a strike at a parts supplier + the company based in toledo ohio had said it expected reduced third-quarter profit + mary anne <unk> an analyst at <unk> investors in new york said automotive suppliers were reporting lower profit almost across the board + <unk> j. <unk> <unk> 's president said the company 's decision to approve its normal fourth-quarter dividend indicated its underlying strength + <unk> <unk> president of japan 's mazda motor corp. said the japanese car maker is planning joint production with ford motor co. in europe ahead of the european community 's N integration + mr. <unk> did n't disclose further details of the arrangement at a news conference but said the project would be undertaken with ford 's european subsidiary + a ford official confirmed in tokyo that the u.s. motor vehicle maker is studying such an arrangement + at age eight <unk> baker was sent by her mother to a white woman 's house to do chores in exchange for meals and a place to sleep a place in the <unk> with the coal + at age N she was a paris <unk> transformed from unwanted child to international sex symbol in just over a decade + it is the stuff of dreams but also of <unk> + only the <unk> spirits survive such roller <unk> + and for ms. baker the ride was far from over + her <unk> <unk> her <unk> her voice her beauty and perhaps most <unk> her <unk> were prominent <unk> but <unk> of a rare sort made her remarkable life possible + <unk> another american black woman who found a measure of fame in paris said i do n't think i 've ever known anyone with a less complicated view of life or whose life was more complicated than <unk> 's + men were a constant <unk> + baker had lots of them + but she did n't trust them and did n't reward trust + as she saw one key love affair the problem was n't her <unk> it was his <unk> + her appetite for children also was large + she adopted N of <unk> races naming them the rainbow tribe and driving her husband first to <unk> and then to argentina + she made money but spent more + friends pitched in + finally prince <unk> and <unk> grace saved her with the offer of a house in <unk> + another <unk> <unk> as <unk> rose makes clear in jazz <unk> <unk> baker in her time <unk> N pages $ N was <unk> + baker had the good luck to arrive in N paris where blacks had become exotic + african art was in <unk> and some intellectuals were writing <unk> of a <unk> age to be inspired by blacks + to be exotic was to be <unk> as well as <unk> but for the most part paris was a friendly island in a <unk> world + baker had bitter experience of <unk> from her st. louis <unk> and her days in new york theater where she was <unk> too dark for an <unk> chorus line performing of course for <unk> audiences + paris loved her at first sight + she just <unk> her <unk> and all the french fell in love with her <unk> the literary world 's maria <unk> not entirely <unk> + one can hardly <unk> the importance of her rear end ms. rose writes + ms. rose who teaches literature at <unk> university quickly proceeds to <unk> claiming that baker 's <unk> had uncovered a new region for desire and thereby ignoring centuries of <unk> to the <unk> + jazz <unk> contains other more important false notes that undermine what is for the most part a <unk> account of a life already familiar from earlier works + it is easy to see why baker a free spirit who broke many of the restraints convention places on women attracts ms. rose the author of parallel lives a wonderful study of <unk> marriage + still even the title raises questions about the author 's vision of her subject + baker 's art was jazz only by the <unk> stretch of the term + to find parallels other than sexual appeal with <unk> requires an equal stretch + baker was N years old when she died in paris two days after the <unk> opening of her newest show a <unk> ending to what was a <unk> life + in fact ms. baker played scenes in <unk> that could have made it into <unk> + during world war ii her <unk> view of life led her to the conclusion that the <unk> were evil and must be resisted a decision made by only about N N of french citizens + she was devoted to charles de <unk> 's cause accepting great financial sacrifice and considerable risk to become first a spy and then a <unk> <unk> tour for the forces of free france + in <unk> bogart 's <unk> victor <unk> leads free french <unk> in la <unk> to <unk> out the <unk> + the night the germans occupied all of france baker performed in <unk> + the free french wore black arm <unk> and when she sang <unk> <unk> <unk> they <unk> + ms. rose is best on the early years and world war ii + in her introduction ms. rose writes that she feels she has much in common with baker but as jazz <unk> goes on it seems more rushed as though the author were growing less interested + it does n't help that sometimes ms. rose 's language fails to deliver the effect she appears to want + one chapter opens world war ii was not one of france 's <unk> moments + elsewhere in an attempt to explain without <unk> it <unk> that baker had a large <unk> following later in her career when she was an <unk> singer rather than <unk> <unk> ms. rose writes she was a female <unk> who happened to be a woman + one devoted fan who fell under baker 's <unk> in N and began collecting baker <unk> was <unk> hammond + in <unk> baker jonathan <unk> N pages $ N which was published in britain last year and distributed in the u.s. this month mr. hammond has used his collection to produce an <unk> of photographs and drawings of the star + the text by patrick <unk> is a tough read but the pictures make her <unk> clear and help explain why ernest <unk> called baker the most <unk> woman anybody ever saw + or ever will + mr. <unk> is foreign editor of the journal + manville having rid itself of asbestos now sells <unk> forest products minerals and industrial goods + <unk> stuff it 's not + but manville 's ownership is unusual and it has caught the eye of some <unk> and patient investors + the <unk> concern which emerged from bankruptcy-law proceedings late last year is controlled by the manville personal injury settlement trust + the trust which owns N N of manville 's stock on a fully diluted basis is a separate legal entity that is settling claims with asbestos victims + when and if the trust runs out of cash which seems increasingly likely it will need to convert its manville stock to cash + but as an N N owner if it tried to sell much of its stock in the market it would likely depress the price of its shares + some investors say there is a good chance that the trust will instead seek to convert the company 's shares to cash in some sort of friendly restructuring that would n't involve just <unk> stock on the market + their principal asset is manville common stock says jeffrey <unk> who runs <unk> associates an investment fund that owns manville shares + if they tried to sell they 'd be chasing their own <unk> + what makes the most sense is to find someone who wants to buy the whole company or cause a recapitalization of all shares + the trust is n't commenting on when it might need to <unk> its manville stock + however the trust 's cash flow from investments is far short of its payments to asbestos victims + its cash and liquid securities fell by $ N million in the first six months of N + the trust also will receive $ N million a year starting in N on a bond it holds from manville + and beginning in N it will have a claim on as much as N N of manville 's annual net income + even so the trust would seem to be facing a cash crunch + as of june N it had settled only about N of the N received claims from asbestos victims for an average of $ N each + the average should drop over time since the most expensive claims are being settled first + and as of midyear settled but unpaid claims amounted to $ N million more than half the trust 's total of $ N million in cash and <unk> securities + at some point we 're going to need an <unk> of funds a person close to the trust says + even before then the trust may be eager to unload manville stock + it does n't pay a dividend and this trust needs income + moreover with N N of its assets tied up in manville the trust is badly in need of diversification + obviously a diversified portfolio would have less risk the person close to the trust says + manville itself does n't rule out a restructuring + though the ink is barely dry on its new <unk> law structure bill bullock manville 's head of investor relations says the company is continually <unk> whether there is a better way to be structured + we understand that the trust is ultimately going to need to sell some of our shares he says + of course one option would be for manville to buy out the trust 's shares which would do little to benefit public stockholders + but the trust in most cases is <unk> from seeking a buyer for only its shares before november N + and both the trust and manville are seeking to avoid the bad publicity that in the asbestos era <unk> the manville name + thus analysts say the trust is unlikely to do anything that would hurt manville 's other shareholders + this is a rare case of a company with a big majority holder which will probably act in the interests of the minority holders one investor says + even if there is no restructuring manville seems to be attractive long-term + its stock at N N trades at about N N times estimated N earnings an <unk> low multiple for a company with <unk> customers + mr. bullock says N N of revenues are tied to construction + analysts predict little or no near-term growth + they are nonetheless high on manville 's management + it 's one of the best in the business says salomon brothers analyst stephen <unk> + and he says manville has the financial flexibility to buy other companies at the best possible moment when other <unk> firms are hurting and selling cheap + with a conservative <unk> ratio of <unk> and $ N million in cash manville is indeed actively on the <unk> + so far as a <unk> <unk> manville has n't bought much + paul <unk> an analyst at duff & phelps says even though they have borrowing power they have been disciplined about acquisitions + and mr. <unk> says that with N N of its stock in friendly hands manville is the rare publicly traded company that can ignore short-term stock fluctuations and plan for the long haul + manville nyse symbol <unk> + business forest products and <unk> + year ended dec. N N sales $ N billions net loss $ N billion \* + third quarter sept. N N per-share earnings N cents vs. N cents \*\* + average daily trading volume N shares + common shares outstanding N million + \* includes $ N billion extraordinary charge + \*\* year ago figure is restated + emerson electric co. and robert <unk> <unk> said the federal trade commission has requested additional information from the two companies about their announced intention to acquire vermont american corp. for $ N a share or about $ N million + yesterday in composite trading on the american stock exchange vermont american common closed at $ N off N cents + the ftc 's request was not unusual and emerson will make a full and prompt response according to a spokesman + spokesmen for emerson and vermont american which has agreed to be acquired said they do n't anticipate any problems with the completion of the transaction + an ftc spokesman said the matter is in a <unk> posture at this time and declined to comment further + emerson and <unk> through their joint acquisition arm <unk> acquisition have begun a cash tender offer for all of vermont 's common shares outstanding + the offer set to expire nov. N may be extended pending the timing and resolution of the ftc request the companies said + st. <unk> emerson and <unk> <unk> make electrical and electronic products including power tools + the vermont american acquisition is designed to enhance their position in the accessories portion of the <unk> industry + santa fe pacific corp. is preparing a plan to sell a N N stake in its large real estate unit to a california public employee pension fund for $ N million after which it would spin off the realty operation to shareholders + the plan places an indicated value on the real estate operation santa fe pacific realty corp. of $ N billion + santa fe pacific directors are expected to review the plan at a meeting today according to people familiar with the transaction + if approved the sale is expected to close by year 's end with the spinoff <unk> by the end of N + in composite trading on the new york stock exchange yesterday santa fe pacific closed at $ N down N cents + santa fe pacific realty is a major california land and building owner whose prime properties include N undeveloped acres in the san francisco bay area and several office sites + a spokesman said the properties survived without significant damage in last week 's northern california earthquake + as a result of the partial sale and spinoff the $ N billion california public employees retirement system would obtain two seats on the board of the real estate operation according to officials of the fund who described the plan + a spokesman for chicago-based santa fe pacific confirmed that negotiations were being held with the fund + also holding two seats each on the board they said would be olympia & york developments ltd. controlled by the <unk> family of canada and itel corp. controlled by chicago businessman sam <unk> + the <unk> and mr. <unk> the largest holders of santa fe pacific stock have been looking for ways to raise the value of their investments including possible <unk> + itel bought a N N stake in <unk> fe pacific last year and olympia & york later purchased about a N N stake they would have interests in the new realty company in line with their holdings in <unk> fe pacific + the sale and spinoff of the real estate unit is the first phase of what could lead to the breakup of santa fe pacific into <unk> companies for its railroad and energy operations as well as real estate + the <unk> parent has been under pressure from large shareholders to boost the company 's share price + at the same time it has been caught in an earnings squeeze + the california pension fund 's planned investment in the real estate unit is unusual + pension funds rarely own as much as a N N stake in what is expected to be a publicly traded company + in addition pension funds are rarely given seats on company boards and most often try to avoid them because of legal concerns + but fund officials said the santa fe pacific realty investment provides an opportunity to buy a stake in a large real estate portfolio heavily weighted with california properties + it also marks a major commitment to real estate development which we have n't been involved with before said dale hanson the fund 's executive director + under the proposed plan the fund would also lend santa fe pacific realty $ N million in the form of a note that would be convertible into additional shares of the realty company after the second year at the <unk> market price + the note would <unk> interest at the rate of N N a year which would be payable to the fund after five years according to stephen e. <unk> a real estate consultant working for the fund + the purpose of the note is to provide added capital for the <unk> company in a form that will save it spending cash on immediate interest payments mr. <unk> said + the <unk> concern clearly will be one of the dominant real estate development companies with a prime portfolio he said + for the last year santa fe pacific has <unk> its real estate operations toward longer-term development of its properties hurting profits that the parent had generated in the past from periodic sales from its portfolio + real estate operating income for the first nine months fell to $ N million from $ N million a year earlier the company said + in a statement late yesterday santa fe pacific 's chairman robert d. <unk> said that santa fe pacific realty would repay more than $ N million in debt owed to the parent before the planned spinoff + that would help reduce santa fe pacific 's remaining debt to about $ N million from a high of $ N billion in early N + it was n't clear where santa fe pacific expected to obtain the payment of more than $ N million which would be well above the $ N million that california pension fund officials say they plan to provide + the realty unit might take on new debt or obtain additional investors among other possibilities + the santa fe pacific spokesman declined to comment on that aspect saying the deal was still under negotiation + santa fe pacific realty owns N million acres of property including N buildings with more than N million square feet of space + it also holds nearly N acres of raw land with development potential but under a previously announced strategy the company has targeted building on N acres in california arizona and the chicago area + among those are the N acres in the san francisco bay area including N acres in the mission bay area + the california pension fund which has $ N billion already invested in real estate and mortgages could be a valuable funding source for that development although it is n't obliged to make further investments + the fund is the nation 's largest public employee fund and it has a growing cash flow now <unk> $ N billion a year + fund officials negotiated the final structure of the proposed deal with santa fe pacific but they were approached with the idea by real estate brokers <unk> realty corp. of chicago + <unk> officials are expected to be hired to represent the pension fund on the santa fe pacific realty board mr. <unk> said to <unk> the fund from potential liability problems + gaf part iii is scheduled to begin today + after two <unk> the stakes in the stock manipulation trial of gaf corp. and its vice chairman james t. sherwin have changed considerably + the first two gaf trials were watched closely on wall street because they were considered to be important tests of the government 's ability to convince a jury of allegations stemming from its insider-trading investigations + in an <unk> indictment the government charged gaf a wayne n.j. chemical maker and mr. sherwin with illegally attempting to manipulate the common stock of union carbide corp. in advance of gaf 's planned sale of a large block of the stock in N + the government 's credibility in the gaf case depended heavily on its star witness boyd l. jefferies the former los angeles brokerage chief who was <unk> by former <unk> ivan boesky and then pointed the finger at mr. sherwin takeover <unk> <unk> b. lewis and corporate raider paul <unk> + the gaf trials were viewed as <unk> of the government 's strength in its cases against mr. lewis and mr. <unk> + mr. jefferies 's performance as a witness was expected to affect his sentencing + but gaf 's bellwether role was short-lived + the first gaf trial ended in a <unk> after four weeks when u.s. district judge mary johnson lowe found that a prosecutor improperly but <unk> withheld a document + after N hours of <unk> the jurors in the second trial said they were <unk> <unk> and another <unk> was declared on march N + meanwhile a federal jury found mr. <unk> guilty on securities fraud and other charges in june + a month later mr. jefferies was <unk> a jail term by a federal judge who praised him for helping the government + in august mr. lewis pleaded guilty to three felony counts + nevertheless the stakes are still high for the players directly involved in the gaf case + the <unk> have left the <unk> of gaf mr. sherwin and gaf chairman samuel <unk> in limbo + for mr. sherwin a conviction could carry penalties of five years in prison and a $ N fine on each count + gaf faces potential fines of $ N for each count + individuals familiar with the case said that throughout september defense attorneys were talking with the government in an effort to prevent a trial but by the end of the month the talks had ended + there is much speculation among attorneys not involved that the strategy of gaf 's attorney arthur <unk> and mr. sherwin 's counsel stephen <unk> will include testimony by mr. sherwin or mr. <unk> + neither testified at the previous trials + for now defense attorneys are <unk> about their plans + max <unk> another gaf defense attorney said yesterday as we go in for the third time <unk> <unk> 's famous line is apt it 's <unk> <unk> all over again + dalkon shield claimants hope to stop <unk> appeal + attorneys for more than N women who claim injuries from the dalkon shield contraceptive device have asked the u.s. supreme court to refuse to hear an appeal of the bankruptcy-law reorganization plan for <unk> robins co. which manufactured the device + the dispute pits two groups of claimants against each other + baltimore attorney michael a. <unk> and N other attorneys representing N claimants in the u.s. and abroad argue that the appeal would delay and perhaps even destroy a $ N billion settlement fund that is the centerpiece of the reorganization plan + the bankruptcy-court reorganization is being challenged before the supreme court by a dissident group of claimants because it places a cap on the total amount of money available to settle claims + it also bars future suits against robins company officials members of the robins family and robins 's former insurer aetna life & casualty co + the latter provision is legally unprecedented said alan b. morrison a public interest lawyer in washington d.c. who is challenging the plan on behalf of N claimants + more than N claims against robins are pending + the company made and marketed the dalkon shield in the early 1970s amid mounting evidence that it could cause serious injuries + robins has been in proceedings under chapter N of the u.s. bankruptcy code since august N such proceedings give it protection from creditor lawsuits while it works out a plan for paying its debts + american home products corp. wants to acquire robins but only if all legal challenges to the plan are exhausted + in a brief filed with the supreme court last week mr. <unk> <unk> the appeal for raising <unk> and theoretical legal issues while <unk> the proposed reorganization and the settlement payments to claimants + the supreme court is scheduled to consider the case nov. N and may issue a decision as early as nov. N + jury 's criminal conviction under superfund law is a first + charles a. <unk> sole <unk> of a louisville ky. <unk> company was found guilty of violating the superfund law as well as the clean air act + criminal convictions under the federal superfund law are rare and the decision is the first jury verdict in such a case + under superfund those who owned generated or <unk> hazardous waste are liable for its cleanup regardless of whether their actions were legal at the time + environmental lawyers say virtually all of the superfund cases to date have involved civil penalties designed to insure cleanup of past <unk> activities + but superfund also contains a criminal provision concerning the release of toxic <unk> into the environment + in N congress strengthened the penalty by making it a felony + mr. <unk> was convicted in louisville late last month of violating superfund by failing to report the release of asbestos into the environment from a building he was <unk> + he was also convicted of failing to properly remove asbestos from the building a violation of the clean air act + the government sought a criminal penalty because no cleanup is possible here + once asbestos is released into the environment it can <unk> anywhere says richard a. dennis the assistant u.s. attorney who prosecuted the case + mr. <unk> is scheduled to be sentenced dec. N + his lawyer could not be reached for comment + mr. <unk> faces as much as three years in prison and a $ N fine for the superfund conviction and as much as one year in prison and a $ N fine for the violation of the clean air act + ted <unk> lawyers switch to victims ' side in <unk> case + <unk> cutler & <unk> the washington d.c. law firm that spent over $ N million fighting the execution of <unk> ted <unk> who eventually was executed has taken on another death penalty case before the supreme court this time on the side of the family of four murder victims in arkansas + the law firm has filed a <unk> brief jointly with the washington legal foundation a conservative legal group + the key issue in the case which the law firm is handling without a fee or pro bono is whether a person sentenced to death can voluntarily waive his rights of appellate review + the <unk> ronald gene simmons was convicted of killing N people + another <unk> on death row has appealed mr. simmons 's death sentence in a next friend capacity + <unk> cutler 's brief argues that there is no mandatory appellate review of capital sentences and that the <unk> who filed the appeal lacks proper standing + <unk> mode <unk> cutler 's managing partner says the trial team that represented mr. <unk> was asked by the firm 's pro bono committee whether the new case posed a conflict and that no objections were raised + the <unk> of the law firm and the washington legal foundation is odd also because <unk> cutler was one of the firms singled out for criticism two years ago by the conservative legal group for <unk> a liberal bias in its pro bono work + we give them a lot of credit for taking this case says <unk> 's alan <unk> + the case of the fake <unk> + in federal court in manhattan three defendants pleaded guilty to charges of fraud in connection with the sale of fake salvador <unk> <unk> + james burke and larry evans formerly owners of the <unk> <unk> gallery and <unk> clark a <unk> sales representative were charged with conducting <unk> telephone sales in which they <unk> cheap copies of <unk> <unk> as signed <unk> <unk> + the <unk> were sold for $ N to $ N although the government says they had a value of only $ N to $ N apiece + henry <unk> the assistant u.s. attorney handling the case said about N customers were <unk> and that <unk> 's total proceeds from the sales were $ N million + attorneys for messrs. burke and evans and ms. <unk> said that although their clients admitted to making some <unk> in the sales they had believed that the works were authorized by mr. <unk> who died in january + the <unk> were printed on paper <unk> by mr. <unk> the attorneys said + <unk> <unk> said richard w. decker resigned as president and chief executive officer after only a year on the job because of differences with the board + the banking company could n't be reached to comment beyond a written announcement + it did n't specify the nature of the differences saying only that they related to management style and strategic objectives + <unk> said mr. decker 's posts were assumed by david <unk> <unk> 's chairman who at N years of age becomes one of the youngest chief executives of a sizable bank in the country + mr. decker is about N years old + neither mr. <unk> nor mr. decker could be reached to comment + <unk> has about $ N billion of assets and is the largest independent bank in northern california + it controls about N N of the affluent <unk> county market across the golden gate bridge from san francisco + mr. decker 's resignation surprised many industry officials + he was brought to the company in september N after N years at los angeles-based first interstate bancorp + the bank had been suffering in late N from a slew of bad real estate loans made in arizona + when he was hired mr. <unk> <unk> mr. decker 's extraordinary skills and his outstanding reputation as one of the west 's <unk> bankers + though the bank is n't performing as well as some of its competitors in the lucrative california market its condition has improved since mr. decker took over + for the six months ended june N it earned $ N million or N cents a share compared with net income of $ N million or N cents a share a year earlier + its stock also has risen lately at least partly because it is considered a possible takeover candidate + interstate banking is scheduled to begin in california in N and larger california banks such as wells fargo & co. have been paying fat premiums to buy smaller banks to control markets before any <unk> banks enter the fray + in american stock exchange composite trading yesterday <unk> closed at $ N a share down N cents + <unk> associates inc. palo alto calif. reported fiscal fourth-quarter profit plunged more than N N to $ N million or five cents a share from $ N million or $ N a share in the year-earlier quarter + the diversified electronics company blamed the decline in the quarter ended sept. N on previously reported operating problems in its <unk> devices & systems group + for the full fiscal year <unk> posted a N N profit rise to $ N million or $ N a share up from $ N million or $ N a share last year + sales for the year rose almost N N to $ N billion from $ N billion last year + a profit last year in both the quarter and year included a net gain of $ N million or N cents a share from the sale of a division + additionally the full-year profit last year reflected an after-tax restructuring charge of $ N million or $ N a share + shares of <unk> which last month warned there would be a fourth-quarter plunge closed at $ N down N cents in composite trading on the new york stock exchange + sales rose N N in the fiscal fourth quarter to $ N million from $ N million on the strength in semiconductors and other products + in a <unk> effort to keep its sales force and customer base integrated resources inc. said it agreed in principle to transfer ownership of its broker-dealer subsidiary to two of its top executives + the financial-services firm struggling since summer to avoid a bankruptcy-law filing after missing interest payments on about $ N billion of debt will retain the right to regain the subsidiary + it said it will exercise that right only if it sells substantially all of its other core businesses + it also can sell the right to regain the subsidiary to another party + also the broker-dealer subsidiary integrated resources equity corp. was renamed royal alliance associates inc + because of integrated 's widely reported troubles the unit 's representatives had been <unk> a name change + royal alliance to which the N representatives ' licenses will be transferred is a shell company integrated owns + in the transaction integrated will transfer N N ownership of the subsidiary to gerard m. <unk> executive vice president of integrated and head of <unk> operations at the subsidiary and gary w. <unk> executive vice president of the parent and president of the subsidiary + integrated will pump $ N million to $ N million into royal alliance as initial funding + in an interview mr. <unk> said that based on criteria yet to be determined he expects to distribute N N of royal alliance to the representatives who sell integrated 's insurance and mutual-fund products + if integrated <unk> royal alliance the representatives will retain their N N ownership + mr. <unk> indicated that completion of the transaction could take several weeks and it was n't immediately clear what would happen to the broker-dealer subsidiary if integrated files for bankruptcy-law protection in the meantime + the subsidiary is n't expected to be profitable for at least one year + if integrated <unk> the unit it would receive any profit the unit reports even while the unit is independent + if the deal closes the two officers will draw salaries from the independent operation not from integrated + many aspects of the agreement were worked out wednesday in chicago when integrated senior managers met with about N representatives + i think it was something that we and they thought was <unk> said stephen d. <unk> chairman and co-chief executive officer of integrated + integrated made its announcement after the market closed + in new york stock exchange composite trading integrated shares closed at $ N up N cents + the dollar weakened in <unk> trading as foreign-exchange dealers <unk> fresh economic news that they hope will jolt the u.s. unit out of its narrow ranges + the canadian dollar climbed to its highest level against the u.s. dollar since late august prompting the bank of canada to sell the canadian currency on the market + traders say that after a week of nervously tracking every development on wall street the foreign-exchange market has settled back to catch its breath ahead of new u.s. economic data + they noted however that a <unk> drop in the dow jones industrial average gave the dollar a sharp <unk> downward late in the day + in late new york trading yesterday the dollar was quoted at N marks down from N marks late friday and at N yen down from N yen late friday + sterling was quoted at $ N up from $ N late friday + in tokyo tuesday the u.s. currency opened for trading at N yen down from monday 's tokyo close of N yen + the market 's attention is especially focused on a preliminary report on the u.s. third-quarter gross national product due out thursday which could show the economy is continuing to expand at a relatively brisk pace + the consensus view on real gnp the total value of the u.s. output of goods and services adjusted for inflation calls for a N N gain on an annual basis slowing somewhat from the second quarter 's N N but still fairly strong + few market participants expect the u.s. unit to rally sharply on the news if it turns out as expected + many contend that the report may <unk> the economy 's health and predict the third-quarter figures may be the last vigorous statistics for some time to come + everyone is waiting for gnp says walter simon an assistant treasurer with bank <unk> <unk> & co + yet even a relatively strong number N N to N N wo n't alter the market 's view that the economy is softening + <unk> <unk> managing director of foreign exchange at credit suisse in new york adds the market sees this as the last piece of good news + mr. <unk> notes that the gnp deflator a measure of inflation is expected to slow which would give the federal reserve more room to ease key u.s. rates + analysts predict a N N rise in the deflator after climbing N N in the second quarter + they note that when an unexpectedly sharp widening in the u.s. trade gap in august was reported earlier this month hopes for a sustained narrowing of the trade deficit were dashed and sentiment <unk> the market that the u.s. economy was losing its momentum + a 190-point plunge in u.s. stock shares compounded the view they say + everyone is extremely convinced the economy is slowing says one senior new york dealer + if we 're not headed for a recession we 're certainly headed for a major slowdown + while the market expects little reaction from news of u.s. durable goods orders scheduled for release today participants note that the figures will probably serve to reinforce this bearish sentiment + u.s. durable goods orders are expected to show a decline of N N in september according to economists + the anticipated drop follows a N N rise in august + traders however are quick to point out that while there is little enthusiasm for buying dollars the u.s. unit has found a natural bottom at about N marks and N yen + its resilience around these levels is pegged to persistent investor demand for the <unk> especially in japan + on the commodity exchange in new york gold for current delivery settled at $ N an ounce down N cents + estimated volume was a very light one million ounces + in early trading in hong kong tuesday gold was quoted at $ N an ounce + <unk> <unk> inc. new york said its third-quarter net income jumped N N citing continued strength in apparel sales and the start of shipments of its new product lines a men 's <unk> <unk> women 's apparel and casual <unk> + the big apparel maker and retailer said that its net income in the latest quarter increased to $ N million or N cents a share from $ N million or N cents a share a year earlier + sales in the quarter gained N N to $ N million from $ N million a year earlier + <unk> shares closed yesterday at $ N up N cents in national over-the-counter trading + <unk> 's directors also declared its regular cash dividend payment of five cents a share payable on dec. N to shareholders of record at the close of business on nov. N + for the nine months net income rose N N to $ N million or $ N a share from $ N million or N cents a share a year earlier + sales gained N N to $ N billion from $ N million + tokyo stocks closed firmer monday with the nikkei index making its fifth consecutive daily gain + stocks also rose in london while the frankfurt market was mixed + in tokyo the nikkei index added N to N + the index moved above N at midmorning nearly reaching the record of N set sept. N + but the market lost part of the early gains on <unk> investment trust fund selling + in early trading in tokyo tuesday the nikkei index rose N points to N + on monday traders noted that some investors took profits against the backdrop of the nikkei 's <unk> recovery following its plunge last monday in reaction to the oct. N drop in new york stock prices + but overall buying interest remained strong through monday with many observers saying they expect the nikkei to continue with moderate gains this week + turnover remained relatively small + volume on the first section was estimated at N million shares down from N billion shares friday + the tokyo stock price index of first section issues was up N at N + relatively stable foreign currency dealings monday were viewed <unk> by market players traders said + but institutional investors may wait a little longer to <unk> the direction of the u.s. monetary policy and the dollar traders said + <unk> <unk> general manager of the stock department at <unk> securities said monday 's trading was <unk> + he said investors were picking individual stocks based on specific incentives and the likelihood of a wider price increase over the short term + the selective approach <unk> themes such as <unk> issues <unk> issues or high-technology shares which had been providing at least some trading direction over the past few weeks mr. <unk> said + investors took profits on major construction shares which advanced last week shifting their attention to some <unk> companies such as <unk> corp. <unk> and <unk> + <unk> gained N yen to N yen $ N + some pharmaceutical shares were popular on rumors related to new products to be introduced at a cancer conference that opened in <unk> + <unk> was up N at N and <unk> <unk> gained N to N + <unk> advanced N to N + fujisawa continued to attract investors because of strong earning prospects stemming from a new immune control agent + fujisawa gained N to N + <unk> was up N to N receiving investor interest for its land property holdings near tokyo a trader said + london prices closed modestly higher in the year 's <unk> turnover a condition that underscored a lack of conviction ahead of a u.k. balance of payments report tuesday + limited volume ahead of the september trade data showed the market is nervous but dealers added that the day 's modest gains also signaled some support for london equities + they pegged the support largely to anticipation that britain 's current account <unk> ca n't be much worse than the near record deficits seen in july and august + it 's a case of the market being too high to buy and too afraid to sell a senior dealer with kleinwort benson securities said + it 's better to wait + the financial times 100-share index finished N points higher at N + the 30-share index closed N points higher at N + volume was N million shares beneath the year 's previous low of N million shares sept. N the session before the august trade figures were released + analysts ' expectations suggest a september current account deficit of # N billion $ N billion compared with august 's # N billion deficit + dealers however said forecasts are broadly <unk> with estimates ranging between # N billion and # N billion + the range of expectations is so broad a dealer at another major u.k. brokerage firm said the deficit may have to be <unk> or above # N billion for it to have any impact on the market + <unk> industries a british automotive and aerospace concern rose N pence to N pence after it said its pretax profit for the year rose N N + share prices on the frankfurt stock exchange closed narrowly mixed in quiet dealings after recovering most of their early losses + the dax index eased N point to end at N after falling N points early in the session + brokers said the declines early in the day were partly caused by losses of the ruling <unk> union in <unk> elections in the state of <unk> + the start of a <unk> conference by the ig metall metal worker union in berlin is drawing attention to the impending wage negotiations which could boost companies ' personnel costs next year they said + but there was little selling pressure and even small orders at the lower levels <unk> to bring the market back to friday 's opening levels + traders said the thin trading volume points to continued uncertainty by most investors following last monday 's record N N loss + the market is still N N short of its level before the plunge and analysts are n't sure how long it will take until the dax has closed that gap + but <unk> <unk> chief trader at <unk> <unk> <unk> <unk> said he expects share prices to move upward in the coming weeks + banking stocks were the major gainers monday amid hope that interest rates have peaked as deutsche bank and dresdner bank added N marks each to N marks $ N and N marks respectively + commerzbank gained N to N + auto shares were mixed as daimler-benz firmed N to N <unk> <unk> <unk> lost the same amount to N and <unk> inched down N to N + elsewhere prices closed higher in amsterdam lower in zurich stockholm and milan mixed in brussels and unchanged in paris + shares closed higher in hong kong singapore and manila and were lower in sydney seoul and taipei + wellington was closed + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + enviropact inc. said it entered into an agreement in principle to sell its pump and tank division and drilling division to <unk> chemical services for $ N million + the miami-based environmental engineering concern said <unk> chemical also will assume about $ N million in debt related to those divisions + further <unk> will buy $ N million of enviropact common stock at $ N a share plus an option to acquire an additional $ N million of common at the same price the company said + in american stock exchange composite trading yesterday enviropact closed at $ N a share up N cents + enviropact said the two divisions account for about $ N million of the company 's $ N million in annual revenue + the transaction is expected to close within about N days the company added + enviropact said the proceeds will be used as working capital for expansion and to pay its existing tax liability of about $ N million that was due sept. N + <unk> is a unit of <unk> transportation ltd. of burlington canada + monday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N days N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + bankers trust new york corp. as expected reported a third-quarter loss of $ N billion or $ N a share following its $ N billion boost in reserves for losses on loans to less-developed countries + the loss compares with net income of $ N million or $ N a share in the year-earlier period + interest income rose N N to about $ N billion from $ N billion + the new york bank holding company 's assets at sept. N climbed to $ N billion from $ N billion + excluding the increase in loan-loss reserves bankers trust said third-quarter net income would have increased N N to $ N million + a number of major banks have posted big losses after sharply increasing loan-loss reserves + most of the loans in question are to third world countries in south america + in new york stock exchange composite trading yesterday bankers trust fell N cents to $ N + bristol-myers squibb co new york + gerald c. <unk> N years old was named president of the <unk> division of this pharmaceuticals and health-care company + he succeeds c. benjamin brooks jr. who will retire nov. N + mr. brooks declined to give his age but he said his leaving is a normal retirement + mr. <unk> had been executive vice president of the division since april + <unk> which makes hair and skin products was a division of bristol-myers co. before that company 's merger with squibb corp + annualized interest rates on certain investments as reported by the federal reserve board on a <unk> basis + a discounted rate + b week ended wednesday october N N and wednesday october N N + c yields adjusted for constant maturity + american telephone & telegraph co. said it will spend $ N million to build a factory in <unk> mexico to make telephone <unk> machines + construction of the <unk> facility will begin next year with production expected to start in late N + when fully operational the <unk> factory will employ about N workers and have annual operating expenses of $ N million to $ N million + an at&t representative said that the <unk> factory will make a full line of <unk> machines + at&t already has a factory in <unk> mexico to make electrical devices + it also purchases data systems products from a manufacturer based in <unk> + <unk> industries plc a british maker of industrial parts and systems reported a N N rise in pretax profit for the year to july N helped in particular by a N N jump in operating profit at its aerospace division + pretax profit in the latest year climbed to # N million $ N million from # N million $ N million + profit after taxes and minority interests but before extraordinary items climbed N N to # N million from # N million with earnings per share rising to N pence $ N from N pence $ N + the results were at the upper end of market expectations which ranged from # N million to # N million + tw services inc. posted a $ N million third-quarter net loss compared with a $ N million profit reflecting $ N million of expenses related to its <unk> proposed takeover by coniston partners + the per-share loss for the <unk> n.j. <unk> concern totaled seven cents compared with earnings of N cents a share a year earlier + revenue rose N N to $ N million from $ N million + coniston a new york investment partnership <unk> a vote by tw 's shareholders scheduled for friday on coniston 's $ <unk> or $ N billion offer for tw + nine-month net income dropped N N to $ N million or N cents a share from $ N million or $ N a share + revenue rose N N to $ N billion from $ N billion + <unk> engine co. columbus ind. hurt by a drop in engine orders from <unk> makers reported a third-quarter loss of $ N million or $ N a share on essentially flat sales of $ N million + in the year-earlier period the maker of diesel engines and parts had a narrower deficit of $ N million or $ N a share with sales of $ N million + a spokeswoman said shipments of truck engines which provide a higher margin than most of the company 's other products declined N N from a year earlier + although <unk> 's stock <unk> last month after the company projected a substantial <unk> loss the stock also fell $ N in composite new york stock exchange trading yesterday to $ N + it traded as high as $ N a month ago before the loss projection + for the nine months the latest loss trimmed net income to $ N million which after payment of preferred dividends represented a <unk> loss a common share + the <unk> loss was $ N million or $ N a common share + exxon corp. filed suit against the state of alaska charging state officials <unk> with the oil company 's initial efforts to treat last spring 's giant oil spill + the action is a <unk> to a suit filed by alaska in august against exxon and six other oil companies + the state 's suit alleges that exxon 's response to the spill failed to prevent <unk> of hundreds of miles of <unk> along prince william sound + that suit and exxon 's <unk> were filed in a state court in <unk> + neither suit lists specific dollar claims largely because damage assessment has n't yet been completed + legal strategists say that damage claims against the oil giant and others could well exceed $ N billion + litigation if not settled out of court could drag on for years + exxon said in its suit that it will seek <unk> from the state for that part of the cleanup costs and damage claims it says resulted from the state 's conduct + the oil company claims that alaskan officials prevented exxon from <unk> <unk> onto the almost N million gallons of oil dumped when one of its <unk> ran into an <unk> <unk> + craig <unk> an alaska assistant attorney general said in an interview last night that exxon 's accusations are not new + exxon has made them before at which point the state demonstrated they were <unk> + the state will vigorously defend against any <unk> + since the spill last march exxon and the state have been <unk> over whether <unk> <unk> on the oil in the first hours after the spill when the weather was clear and calm would have helped limit the environmental damage + exxon claims that use of <unk> which break an oil <unk> into <unk> <unk> was a crucial part of its <unk> plan and that state officials banned their use during the two days of fair weather following the spill + the oil company claims that it had permission from the u.s. environmental protection agency prior to the spill to use <unk> during such an incident at the discretion of the u.s. coast guard + the state 's opposition to the use of <unk> exxon says caused the coast guard to delay granting permission + alaskan and coast guard officials say exxon 's charges are n't relevant because tests conducted during the first two days following the spill showed that the <unk> was n't working anyway + use of <unk> was approved when a test on the third day showed some positive results officials said + <unk> investment ltd. a vancouver <unk> investment firm said it raised its stake in <unk> industries to N N of the common shares outstanding + in a securities and exchange commission filing <unk> said it holds N <unk> common shares including net purchases of N shares bought from oct. N N to oct. N N for $ N to $ N each + <unk> is the personal holding company of steven <unk> a vancouver securities dealer + he said the transaction was made for investment purposes + officials for sun valley calif.-based <unk> could n't be reached for comment + in composite trading on the american stock exchange <unk> closed unchanged yesterday at $ N a share + the house appropriations committee approved an estimated $ N billion in emergency funding to assist california 's recovery from last week 's earthquake and to extend further aid to east coast victims of hurricane hugo + the package was termed excessive by the bush administration but it also provoked a struggle with influential california lawmakers who sought unsuccessfully to add nearly $ N billion more and waive current restrictions to <unk> the distribution of funds + by a N margin the committee <unk> the more expensive alternative and the debate forced a <unk> confrontation between appropriations committee chairman jamie whitten d. miss and his party 's largest state delegation in the house + i have no regrets about going forward said rep. <unk> fazio d. calif. who sought later to play down the sometimes hostile tone of the long evening meeting + we are the golden state mr. fazio said and there is a certain amount of <unk> + the $ N billion package <unk> $ N million for small-business loans $ N billion in highway construction funds and $ N billion divided between general emergency assistance and a reserve to be available to president bush to meet unanticipated costs from the two disasters + the funding is attached to a <unk> bill to keep most of the government operating through nov. N + the measure is expected to come before the house today and congress is under pressure to complete action before midnight edt tomorrow when the current continuing resolution expires + given california 's size and political importance the white house is eager to appear generous + but in private meetings yesterday budget director richard darman argued that only $ N billion in new federal appropriations are needed to supplement existing resources + a white house budget office analysis estimates that $ N million or half the level in the committee bill is needed for highway assistance to meet california 's needs and the administration <unk> the notion that new appropriations are needed to finance disaster loans by the small business administration + everybody <unk> that it is a national disaster and that we 've got to address it said mr. darman who came to the capitol to meet with mr. whitten and california lawmakers before the committee session + i would hope very much that we would n't end up in a kind of situation where you have a bidding war and then a veto threat + although this white house pressure was clearly a factor among committee republicans no single influence was greater than mr. whitten + a master of pork-barrel politics he had <unk> the $ N billion package in vintage style and used the full force of his <unk> to keep the proposal intact and dismiss any alternative + when mr. fazio offered the <unk> $ N billion plan mr. whitten insisted that the full N pages be read <unk> by the panel 's clerk to underscore the range of legislative changes also sought by the delegation + on the chairman 's motion the california package was subsequently reduced to <unk> report language and even when this was accepted as such on a voice vote mr. whitten <unk> opposed it + more important than money in many cases are <unk> california is seeking on current restrictions covering federal highway funds such as a $ N million cap on how much any single state can receive in emergency funds in a year + mr. whitten 's package appears to accomplish this purpose but the state faces more resistance in its bid for an extended waiver on having to put up any matching funds on repairs completed in the next six months + a member in the house leadership and skilled legislator mr. fazio nonetheless found himself <unk> not only by california 's needs but by hurricane hugo amendments he accepted in a <unk> effort to build support in the panel + the california democrat appeared embarrassed by provisions inserted on behalf of owners of private <unk> in the virgin islands and lumber interests sought to add another $ N million in federal aid to plant <unk> on private land in north and south carolina + california 's high-priced real estate puts it in an <unk> position too + one provision last night would have raised the cap on disaster loans to $ N from $ N per household to accommodate san francisco losses + <unk> music systems inc. said it retained kidder peabody & co. to study financial alternatives including the possible sale of the financially struggling company + <unk> <unk> mass. makes digital electronic <unk> instruments used by professional recording musicians + it recently introduced a line for the home market + however raymond c. <unk> chairman and chief executive said the company continues to require additional funding to realize the potential of its technology + in the year 's first six months <unk> had a loss of $ N million on sales of $ N million + last month its president john s. <unk> resigned citing management differences with mr. <unk> + <unk> systems inc. <unk> ariz. said its preliminary year-end results of operations indicate substantial improvement over the previous fiscal year + <unk> which makes an automated process system that improves the yields of semiconductor manufacturers said profit for the year ended sept. N rose to more than $ N from $ N last year + per-share earnings are estimated at more than N cents up from N cents for fiscal N + total revenue is expected to double to more than $ N million from $ N million + <unk> which also provides technical temporary employment services to aerospace defense computer and high-tech companies in the southwest and <unk> areas said its final <unk> results are due in late november + the company attributed the improvement to strong demand in the semiconductor equipment segment as well as the acquisition of <unk> service co. and the <unk> of a full year 's results of operations for <unk> inc. compared with seven months ' results for the prior year + <unk> corp. cleveland said it will offer $ N million in commercial paper backed by <unk> receivables + the program matches funds raised from the sale of the commercial paper with small to medium-sized leases + <unk> termed the paper <unk> financing meaning that investors would be repaid from the lease receivables rather than directly by <unk> corp + <unk> leases and sells <unk> telecommunications and other high-tech equipment + shevardnadze admitted that moscow violated the N abm treaty + in a <unk> address before the soviet legislature the foreign minister conceded that the radar station in krasnoyarsk <unk> the <unk> <unk> missile treaty and said it would be <unk> + shevardnadze said it took gorbachev 's government four years to determine that the station 's location in <unk> violated the accord as western arms-control officials have long contended + he also denounced moscow 's <unk> involvement in the war in afghanistan saying it involved gross violations of civil <unk> and ethics + secretary of state baker in his first major arms-control speech called for a new military relationship with moscow to reduce first strike nuclear arms + bay area commuters battled earthquake-related transportation <unk> + travelers crowded into <unk> sat in traffic <unk> on major freeways or waited for buses in the rain but the massive gridlock anticipated by officials in the san francisco bay area never materialized + as the death toll from last week 's temblor climbed to N the condition of freeway <unk> buck helm who spent four days trapped under rubble improved hospital officials said + rescue crews however gave up hope that others would be found alive under the collapsed roadway + the house appropriations committee approved a $ N billion aid package for the quake region less than the $ N billion sought by california officials + hungary declared itself a democracy and for the first time openly <unk> the anniversary of the N <unk> <unk> that was crushed by the soviet union + a crowd estimated at N held a <unk> march through <unk> as acting president <unk> delivered a nationally televised address rejecting communist dominance + about N east germans marched in leipzig and thousands more staged protests in three other cities in a fresh challenge to the communist leadership to introduce democratic freedoms + in an east berlin suburb meanwhile employees at an electronics plant formed an independent trade union called reform a worker spokesman said + the space shuttle atlantis landed at a desert air strip at edwards air force base calif. ending a <unk> mission that dispatched the <unk> galileo space probe + the five <unk> returned to earth about three hours early because high <unk> had been predicted at the landing site + <unk> <unk> the base before <unk> + explosions shook a phillips petroleum co. plastics plant near pasadena texas <unk> debris and causing a fire visible from N miles away + more than N people were injured and a number of workers were missing + parts of the houston ship channel were closed + the white house said bush is <unk> with leaders of the senate intelligence committee to ease differences over guidelines for cia agents + the statement came after officials said bush complained at a private meeting last week that a strict interpretation of a policy requires the u.s. to notify foreign <unk> of certain coup <unk> + lebanon 's gen. aoun placed christian military forces on alert in case of renewed fighting with <unk> <unk> after lebanon 's two main <unk> <unk> rejected an <unk> peace accord + the plan approved by lawmakers and rejected sunday by aoun includes political changes aimed at ending the 14-year-old civil war + nato defense ministers are expected to call for a reduction in nuclear forces in europe when the alliance 's nuclear planning group <unk> a two-day session today in portugal + the ministers are to <unk> nato 's defenses in western europe amid <unk> changes in the soviet bloc + iran 's president <unk> offered to help gain freedom for western <unk> in lebanon but said the assistance was contingent on u.s. aid in <unk> the cases of three <unk> <unk> in lebanon in N or the release of frozen iranian assets + washington rejected the bid saying the <unk> were n't linked to other issues + plo leader arafat asked egypt to seek <unk> from the u.s. on secretary of state baker 's plan for mideast peace talks an aide to egyptian president <unk> said + the official stressed that the plo has n't rejected the <unk> formula + commonwealth leaders turned to issues ranging from drugs to the world economy after <unk> 's president <unk> called thatcher 's views on south africa <unk> + at a meeting in malaysia australia and canada also <unk> the british prime minister for <unk> the <unk> group 's call for pretoria to ease apartheid + cms <unk> inc. said it estimates that sales and earnings for the fiscal first quarter ended sept. N fell somewhat from the year-earlier period + jim <unk> chief executive officer of the <unk> calif. computer accessories supplier said he was comfortable with analysts ' expectations that cms would earn between six cents and eight cents a share on revenue of about $ N million + a year earlier cms posted profit of $ N million or N cents a share on sales of $ N million + this time there are N N more shares outstanding + mr. <unk> attributed the decline to an industrywide softening of demand for computer <unk> products + property capital trust said it dropped its plan to liquidate because it was n't able to realize the value it had expected + it said it will buy back two million shares or N N of the total outstanding and continue operations buying and managing real estate + property capital which is based in boston had told shareholders it expected to distribute at least $ N a share or $ N million in a liquidation based on an expected asset sale price of $ N million or more + the company said it did n't receive an offer it wanted to accept + as a result of dropping the liquidation plan shareholders will have to treat dividends received this year as ordinary income or capital gains rather than as tax free returns of capital the company said + the share repurchase will be funded mostly from borrowings + <unk> <unk> corp. said its net income was $ N million or N cents a share in the third quarter more than four times its profit of $ N or three cents a share last year + included in the results was an adjustment to the dallas-based company 's tax rate that reduced net income by about N cents a share or approximately $ N million + <unk> said it increased its effective tax rate to N N from N N to account for potential liabilities related to an internal revenue service investigation of its tax returns for the years N through N + the newspaper and television owner said it expects the tax adjustment to reduce its net income for the full year by N cents or approximately $ N million based on its N million shares outstanding + for the third quarter <unk> said its revenue increased N N to $ N million from $ N million last year + for the nine months the company had net income of $ N million or N cents a share up N N from $ N million or N cents a share last year + revenue grew almost N N to $ N million from $ N million last year + a federal judge granted a temporary stay of the california student aid commission 's emergency action to stop <unk> loans for national technical schools a unit of united education & software inc + the california student aid commission took the action oct. N after a government audit cited national technical schools for having courses too short to be eligible for the educational loan program and having a student <unk> rate far in excess of federal standards and it alleged other serious violations of law and regulations + united education & software a los angeles education services company called the commission 's action <unk> and unwarranted + the court set a hearing on the emergency action for oct. N + united education & software posted a $ N bond against potential losses to the student aid commission and to taxpayers in <unk> any more loans for national technical schools students prior to the hearing + a decline in allied-signal inc. 's automotive business contributed to flat sales and only slightly higher earnings in the third quarter + allied-signal reported that net rose N N to $ N million or N cents a share from $ N million or N cents a share the year earlier + sales slipped N N to $ N billion from $ N billion + for the nine months the morris township <unk> company with businesses in aerospace automotive products and engineered materials earned $ N million or $ N cents a share up N N from $ N million or $ N a share + sales eased N N to $ N billion from $ N billion + chairman edward l. <unk> jr. said that a drop in sales of auto and truck parts contributed to lower earnings in the automotive unit + he also cited unfavorable foreign-exchange rates and a lower tax rate + earnings for the group declined to $ N million from $ N million last year + earnings at allied-signal 's aerospace business rose to $ N million from $ N million a year ago primarily on higher sales and profit in its engines and <unk> power units + in new york stock exchange composite trading yesterday allied-signal shares closed at $ N off N cents + the national highway traffic safety administration said it will start <unk> <unk> regulations jan. N for so-called <unk> imports of vehicles + the regulations required under legislation enacted by congress last year will apply to imports of vehicles that were n't built to meet u.s. government auto safety standards and were intended for use in europe or elsewhere abroad + u.s. officials estimated that <unk> imports total about N units a year a small part of the more than three million vehicles exported to the u.s. each year + according to the <unk> the new regulations will prohibit anyone other than an importer that has registered with the u.s. government or a person who has a contract with a registered importer from permanently importing a vehicle that does n't meet the u.s. auto safety standards + the registered importer would be required to bring such vehicles into compliance with the u.s. safety standards compared with the current situation in which anyone can bring in such vehicles and modify them to meet the u.s. standards + congress tightened auto safety standards for <unk> imports after u.s. auto dealers including <unk> <unk> dealers complained that they often were blamed when the second and third buyers of such vehicles found that the cars could n't meet u.s. auto safety standards + legent corp. said it expects to report net income between $ N million and $ N million or between N cents and N cents a share for its fourth quarter ended sept. N + in the year-ago quarter the software developer reported pro <unk> earnings of $ N million or N cents a share + vienna <unk> legent said it expects to post revenue for the quarter of more than $ N million compared with pro <unk> revenue of $ N million in N + for the fiscal year the company said it anticipates reporting earnings of $ N million or about $ N a share including a charge of about $ N million or N cents a share related to the merger that created legent out of <unk> systems inc. and <unk> inc. in march N + revenue for fiscal N is expected to exceed $ N million + pro <unk> earnings for fiscal N were $ N million or N cents a share on revenue of $ N million + the company attributed much of the growth in earnings to increased demand for its systems productivity software + <unk> corp. said it expects to report net income for its fiscal year ended sept. N of a record $ N million or $ N a share up N N from $ N million or N cents a share for the prior year + the costa mesa calif. maker of computer tape drives also projected record revenue for the year of $ N million up from $ N million for the previous year + <unk> attributed the gains to strong demand for its products continued growth of the <unk> market and the acquisition of maynard electronics in february which accounted for about N N of the company 's revenue + detrex corp. said a reserve it is establishing to cover expected pollution cleanup costs at an ohio plant reduced its third-quarter net income by $ N million + detrex which has annual sales of about $ N million declined to say if it would post a loss in the third quarter + the <unk> <unk> company earned $ N in the quarter last year + detrex is setting aside $ N million for the cleanup but said the reserve reduced its quarterly income by only $ N million because of tax considerations + in addition the manufacturer said it signed a consent <unk> with ohio to build a $ N million <unk> facility at the <unk> chemical manufacturing plant by aug. N N + detrex said it is one of at least N companies notified by the environmental protection agency that they may be potentially responsible for cleaning up the fields <unk> <unk> near detrex 's <unk> plant at a total cost the epa estimates at $ N million a figure detrex said the companies dispute + first executive corp. said about N N of the rights to purchase its depositary shares and warrants have been exercised + of the N million rights units issued just under N million were exercised before the oct. N expiration of the offering the insurance holding company said + remaining units will be sold to the underwriters drexel burnham lambert inc. and kidder peabody & co. which will also purchase an <unk> of N million additional units + first executive said the offering will raise about $ N million minus underwriting fees and other expenses that the company plans to use to write new life insurance and annuity business + in addition analysts have viewed the rights offering as a takeover defense that <unk> <unk> the number of shares outstanding + each of the units consists of two warrants each of which could be used to purchase a <unk> of common stock and one depositary preference share + depositary shares are convertible into common stock on a <unk> basis + currently the company has about N million common shares outstanding + in over-the-counter trading monday the stock closed at $ N off N cents + united air 's parent <unk> any prospects for an immediate revival of the labor-management buy-out saying ual should remain independent for now + also ual chairman stephen wolf pulled out of the buy-out effort to focus on running the company + the two developments leave the airline with several problems including an unsettled labor situation + stock prices fell and bonds rose as worries mounted about the economy and the junk bond market + the dow jones industrials sank N points to N + the dollar also declined + the turmoil in junk bonds may last for years investors and traders say + even drexel is pulling back + santa fe pacific plans to sell N N of its large real estate unit to a california pension fund for $ N million and spin the rest off to shareholders + the proposal values the company 's real estate operation at $ N billion + time warner reported a $ N million loss for the third quarter reflecting the cost of the recent merger and a method of accounting for the deal + thrifts continued to shed assets in august mainly to comply with <unk> capital rules under the s&l bailout law + also withdrawals exceeded deposits by $ N billion in the month + exxon 's profit fell N N in the third quarter hurt by sagging results at two of its three main businesses + phillips and arco posted declines + ashland had a loss + <unk> hess and occidental petroleum had gains + ogilvy 's chairman kenneth roman is leaving to take a top post at american express + his resignation follows a hostile takeover of the ad agency in may by wpp of britain + the justice department took steps that could restrict the use by prosecutors of criminal racketeering charges against white-collar defendants + shearson was sued by money manager george <unk> who claimed one of his funds was <unk> out of $ N million during stock-index futures trading just after the N crash + drexel 's efforts to settle its legal troubles are being resisted by at least N states + some may try to revoke the firm 's license to sell securities + prime computer plans to dismiss N N of its work force to cut costs following its recent leveraged buy-out + the action <unk> concern about <unk> in high-tech industries + paribas plans a bid for another big french financial and industrial firm navigation mixte a sign europe 's takeover fever has n't cooled + qintex australia unveiled plans to restructure and sell assets to try to ease its financial problems + union carbide 's earnings plunged N N in the third quarter reflecting weakness in the company 's core chemicals and plastics businesses + japan 's daiwa securities named <unk> dozen president + the rapid advance of the <unk> executive surprised many at the company + markets + stocks volume N shares + dow jones industrials N off N transportation N up N utilities N off N + bonds shearson lehman hutton treasury index N up + commodities dow jones futures index N off N spot index N up N + dollar N yen off N N marks off N + the justice department has revised certain internal guidelines and <unk> others in a move that could restrict the use of criminal racketeering charges against white-collar defendants + the most significant changes in department policy are new requirements that federal prosecutors avoid <unk> the normal business functions of companies charged under the racketeering law a senior department official said + another important revision of department policy is a new guideline warning prosecutors not to take steps that would harm innocent third parties in a case brought under the racketeering law the official david runkel said + the department distributed the revisions and <unk> to u.s. attorneys around the country this summer as part of a routine process of <unk> prosecutorial guidelines mr. runkel said + the changes apply to prosecutions brought under the <unk> influenced and corrupt organizations law + under that law defendants who allegedly commit a pattern of crimes by means of a criminal enterprise may be charged with racketeering and forced to <unk> the proceeds of the enterprise + the rico law has come under criticism from some defendants and defense lawyers + they argue that the rights of rico defendants and third parties not named in rico <unk> have been unfairly damaged + the department 's most significant <unk> of existing rico policy is a <unk> to prosecutors that they should seek to seize assets from defendants in proportion to the nature of the alleged <unk> mr. runkel said + that means that if the <unk> deals with one part of the business you do n't attempt to seize the whole business you attempt to seize assets related to the crime he explained + in general the thrust of the department 's <unk> is to encourage prosecutors to limit pretrial asset seizures if there are less <unk> means of protecting assets the government may subsequently be able to seize after a conviction mr. runkel said + it was the kind of <unk> rarely seen within the congress let alone within the same party + sen. alan cranston <unk> over to the house side of capitol hill a few days ago and <unk> his testimony to fellow democrat rep. henry gonzalez + it was offered as an expression of cooperation to mr. gonzalez who is investigating the $ N billion failure of lincoln savings & loan association + but instead of thanks sen. cranston was treated with cool <unk> + every witness receives a formal subpoena rep. gonzalez told him + seldom have house hearings caused so much <unk> in the senate where california sen. cranston and four other senators were already <unk> in the glare of unfavorable publicity over the alleged <unk> of lincoln by their friend and political <unk> charles keating jr. principal <unk> of lincoln 's parent company american continental corp. of phoenix <unk> + at the first day of the house banking committee 's hearings last week william seidman chairman of the resolution trust corp. the federal agency created to sell sick thrifts said the agency is investigating whether lincoln made illegal political contributions + mr. keating arranged nearly $ N million in donations to sen. cranston and his various political causes and hundreds of thousands more to other lawmakers + future witnesses include a former federal s&l regulator who has accused the five senators of attempting to <unk> the regulatory process by <unk> on behalf of mr. keating + unlike many lawmakers chairman gonzalez says he considers <unk> with regulators to be improper + when you reach a point where a <unk> body is trying to shape administrative decisions then that 's a <unk> in my book the texas <unk> says + and he has attached himself to the lincoln story <unk> + unless the questions are answered i will keep on going + lawmakers often are reluctant to <unk> colleagues even those of opposing political parties + in the recent housing and urban development department scandal for example rep. thomas <unk> the california democrat who led the hearings <unk> through embarrassing disclosures about hud grants secured by sen. <unk> <unk> a new york republican + but chairman gonzalez is a genuine <unk> + he comes from the same political line as wright <unk> a <unk> texas <unk> who <unk> the banking committee until N + mr. gonzalez is also a <unk> for ethical standards who refuses to accept <unk> and who believes in conducting official business in the open + early in his political career as a city <unk> in san antonio he walked out of a meeting when political supporters asked that the police chief be replaced <unk> the <unk> affair publicly as a <unk> meeting + the immediate target of rep. gonzalez 's inquiry is danny wall chairman of the office of thrift supervision + as the principal regulator of the thrift industry mr. wall delayed <unk> lincoln s&l for more than two years after his staff told him that the california thrift was insolvent and that potential losses to taxpayers were growing rapidly + rep. gonzalez seems <unk> to <unk> out at mr. wall when hearings resume thursday with testimony by two federal regulators from san francisco william black and mike <unk> + mr. wall relieved them of responsibility for <unk> lincoln in N + mr. gonzalez expressed concern over a report that the two had been summoned to washington by mr. wall last week to discuss their testimony in advance + i think he is trying to improperly influence a witness and by god i 'm not going to <unk> it he says + mr. wall however is a <unk> child of the senate and former staff director of its banking committee + an inquiry into his handling of lincoln s&l inevitably will drag in sen. cranston and the four others sens. dennis <unk> d. ariz. john <unk> r. ariz. john glenn d. ohio and donald <unk> d. mich + they all attended a meeting in april N questioning why a federal audit of lincoln s&l had dragged on for two years + i 'm certain that in the course of the hearings the names of the senators will be brought out mr. gonzalez says + this is raising <unk> + when i first got a <unk> at the witness list i could n't believe that they were going to go ahead and do this says michael <unk> director of congress watch a consumer group + there are some witnesses who will be forced to testify about their meetings with senators + and a democratic aide to a banking committee member remarks i too am <unk> by it because gonzalez has certainly placed a lot of democratic senators in a very bad position + all the senators say they merely were trying to ensure fairness for a <unk> + mr. keating lives in phoenix and the california thrift 's parent is an <unk> corporation with holdings in michigan + chairman gonzalez <unk> <unk> for sen. <unk> his counterpart as chairman of the senate banking committee + he 's <unk> he 's good and i know he 's an honest man the <unk> says + but at the same time mr. gonzalez has n't forgotten a confrontation over mr. wall during house-senate negotiations over s&l bailout legislation during the summer + the senate negotiators included sens. cranston and <unk> and mr. wall 's principal sponsor republican sen. <unk> <unk> of utah + they were willing to trade important provisions in the bailout legislation to preserve mr. wall 's job and to avoid a <unk> hearing in which he would be called upon to testify about lincoln s&l + most <unk> the senate traded away the bush administration 's controversial plan to finance the bailout which was partly <unk> later + at the time mr. gonzalez said several senators told him that they could get some <unk> out of the way if there could be some understanding on <unk> 's insistence on wall + now mr. gonzalez is holding the equivalent of <unk> hearings anyway under the <unk> of the lincoln investigation + in a way that 's what this is mr. gonzalez concedes + even some house banking committee members could suffer from the fallout + mr. keating raised $ N for rep. doug <unk> 's N re-election campaign while the georgia democrat was taking his side against regulators who wanted to curb risky investments and wholesale deposit <unk> + he recently voted present when the committee authorized a subpoena to <unk> mr. keating to testify then changed his vote to yes + but the chairman 's supporters have the upper hand as federal regulators press a $ N billion fraud suit against mr. keating and others + rep. jim <unk> r. iowa says the lincoln s&l affair is the biggest bank <unk> in history and adds the great question that remains to be resolved is whether we have a congressional <unk> in the making + a witness set to testify on thursday was quoted in a news report over the weekend as saying lincoln <unk> campaign contributions illegally + but the witness william <unk> california 's chief state thrift regulator denies saying that + i do n't know whether it was done properly or not because i 'm not a lawyer he said in a telephone interview yesterday + but he said he is prepared to testify that executives of lincoln and its parent corporation got unusually high salaries and frequent calls <unk> them to make specific contributions + the committee also has summoned mr. wall 's predecessor edwin gray + he has characterized the five senators ' roles as <unk> to an attempt to <unk> the regulatory process and he is n't expected to back down even though the five senators have disputed his account of a N meeting + so the senators must <unk> themselves + sen. cranston as he returned to the capital last week from a one-day trip to <unk> earthquake damage in san francisco <unk> to an aide well back to <unk> + when anne volokh and her family <unk> to the u.s. N years ago they started life in los angeles with only $ N + they 'd actually left the soviet union with $ N but during a stop in italy ms. volokh dropped $ N on a black <unk> suit + not surprisingly she quickly adapted to the american way + three months after she arrived in l.a. she spent $ N she did n't have for a hat + a <unk> she <unk> though it was n't the time for that N years ago + but i loved <unk> + since then she has become wealthy + her husband and older son a computer <unk> <unk> in the wall street journal in N when he was N run a software company with expected sales this year of $ N million + most recently she has become the publisher of <unk> a four-year-old los angeles magazine that began national distribution last month with an initial press run of N copies + distributed by the hearst corp. 's eastern news the glossy publication <unk> <unk> fair 's <unk> <unk> and premiere 's <unk> <unk> into <unk> <unk> with a special emphasis on <unk> as fashion <unk> + it 's being sold through <unk> <unk> and some video stores + though ms. volokh is a small woman she has an <unk> <unk> and dramatic <unk> that seem perfectly <unk> to capitalism as it is practiced in hollywood + certainly life for her has changed considerably since the days in <unk> when she lived with her parents her husband and her two sons in a N <unk> apartment in what she calls silent internal <unk> <unk> of escape + now for example she owns N hats + however she <unk> the lean years and recalls with <unk> wearing her first major american purchase that <unk> N years later and having a los angeles <unk> owner ask her if it was a <unk> + with obvious satisfaction she says she told him no <unk> i just give it a <unk> look + she keeps track of the rest of her hats by <unk> polaroid <unk> to the outside of each <unk> + are the hats merely part of her new l.a. <unk> along with the many <unk> <unk> cigarettes she <unk> the parties she throws for N people the <unk> <unk> she offers guests at her weekend place in santa barbara + no <unk> she said recently in her <unk> slightly affected english during a trip east to promote <unk> 's national expansion + you have to be born with it + i used to wear hats in russia but i had to make them and my <unk> + on the hat side i was n't getting what i wanted + now N years old ms. volokh has <unk> ideas about what she wants + at <unk> she wants specific <unk> specific tone a specific attitude bright and bold and <unk> + in restaurants in this case the russian <unk> a new york restaurant operated by and for soviet <unk> she did n't want the <unk> <unk> music <unk> through the room + you people here think this is russian music she said with <unk> and called over to the <unk> could you turn it off + that done ms. volokh spoke with rampant <unk> about the many attributes she feels she was born with an understanding of food business russian culture human nature and parties + parties are rather a state of mind she said <unk> only to taste and pass judgment on the <unk> <unk> a little well done but very good + if you are born to give parties you give parties + even in russia we managed to give parties + in los angeles in our lean years we gave parties + as publisher of a magazine devoted to movies as <unk> for fashion and other <unk> ms. volokh sees her <unk> as an important part of business + she has thrown <unk> <unk> for <unk> of people but prefers more intimate <unk> + at american <unk> parties everyone 's always looking over your shoulder to see who they can talk to next + i like rather tea because it is at the end of the day + she serves high russian tea at N p.m + it 's supposed to be later but i just moved it + in los angeles it 's important to catch people just after work + she also frequently invites directors producers actors writers and other show business people for coffee and <unk> in the pleasure <unk> + guests bring movies on tape and show their favorite <unk> minute segments on the screen that <unk> from the ceiling of the <unk> ' <unk> library the pleasure <unk> + they eat <unk> and <unk> things and explain their <unk> + it 's very <unk> and soul baring said ms. volokh + the idea for <unk> actually was <unk> up by an old friend of the <unk> <unk> <unk> who has the title of <unk> and <unk> <unk> smith now the magazine 's <unk> + mr. <unk> approached ms. volokh five years ago about backing the publication which started out as a listing guide + she was interested only if she could guide it <unk> as well + anne does n't believe in <unk> said ms. smith + she wants things to be exciting + and she has this <unk> energy + she 'll think of an idea the editorial people think is impossible then she 'll have us make it work + in fact ms. volokh was n't just a rich lady who needed a <unk> + back in the soviet union she was a respected journalist writing a weekly column about the national <unk> for sunday <unk> + those columns vivid discussions of the cultural and literary <unk> of food as well as practical advice on how to <unk> <unk> <unk> meals became the basis for her <unk> and entertaining <unk> the art of russian <unk> brought out in N by macmillan publishing co + i do n't trust people who do n't eat said ms. volokh though she herself stopped eating lunch a few years ago to drop N pounds + look at <unk> and <unk> + no one ever <unk> in their books and look at them + <unk> 's characters eat <unk> 's <unk> 's + in her <unk> which macmillan is bringing out in soft cover this month with the <unk> <unk> revised so it works she <unk> each chapter with appropriate quotations from russian literature <unk> on <unk> <unk> on <unk> + in life she offers practical <unk> advice divide your meals into important and <unk> + in a great restaurant do n't <unk> yourself + the other meals do n't matter + amusing as she is and <unk> as she can seem this is a serious person with some difficult memories + she was the child of relative privilege + her mother was a <unk> her father was the <unk> vice director + i <unk> to wear better hats do better parties she said with a <unk> + but we should n't leave out political reasons number one + you try to maintain your dignity under difficult circumstances + one can not imagine how you live when you live those double and triple lives + by N after their second child was born it had become clear to ms. volokh and her husband <unk> a computer scientist that they wanted to leave the <unk> + ms. volokh quit her job to remove herself from the public eye + the wait was <unk> + before granting ms. volokh 's parents a visa the government required her mother to obtain permission from her first husband whom she had <unk> N years earlier + mr. volokh was fired from his job and had to endure hours of organized <unk> abuse from his <unk> accusations of sabotage and <unk> activities + the <unk> were afraid that they 'd end up like a friend of theirs who 'd applied for a visa and waited for N years having been <unk> from his profession of theoretical <unk> to shipping clerk + they did n't + their visa came in relatively short order and they moved to los angeles + mr. volokh soon found work in his field but ms. volokh refused the obvious and available <unk> as <unk> for a russian who spoke <unk> english + that 's always looking back she said + i wanted to be in business + on the way to that goal she received her first u.s. <unk> for <unk> a book of polish <unk> attended <unk> school then went to work for a fund-raising organization + soon she was running the office + when her husband and son founded their computer company <unk> she worked as business manager <unk> and <unk> + now <unk> is located in the same building as <unk> + things work out unexpectedly in life said ms. volokh + you never know if you 'll be chosen to be the <unk> or the lucky one + we were lucky + william d. <unk> president of the <unk> trade and economic council has a warning for u.s. companies trying to do business in the soviet union + it 's an extremely complex market and you have to be prepared to make a big commitment mr. <unk> says + we are not trying to encourage everyone + <unk> by such words of caution corporate america is <unk> to moscow <unk> by a huge <unk> market and mikhail gorbachev 's attempt to overhaul the soviet economy + doing business with the russians once the pursuit of a handful of <unk> veterans has become the goal of such major companies as general motors corp. federal express corp. and procter & gamble co. as well as a <unk> of smaller firms + reflecting the <unk> interest more than N u.s. companies are taking part in a moscow exhibition organized by mr. <unk> 's trade group + but while u.s. interest may be big and growing the difficulties that have <unk> deals in the past show no sign of <unk> + alongside the old problems of a <unk> currency and an <unk> bureaucracy western business executives must now <unk> with new <unk> linked to perestroika the restructuring of the soviet economy + executives say mr. gorbachev 's moves to break up the government 's foreign trade monopoly have created uncertainties as well as opportunities + changing legislation has opened the field to thousands of <unk> soviet players many who promise more than they can deliver + and some foreign firms are finding that even when they manage to overcome such hurdles their ventures now have to be endorsed by such <unk> bodies as the soviet parliament and the governments of the nation 's republics + you have to go out to all your constituents says james h. <unk> who is <unk> the most ambitious attempt by u.s. firms to break into the soviet market involving investment of more than $ N billion in some two dozen joint ventures + as part of that attempt by the american trade consortium mr. <unk> says he spends a lot of time lobbying + growing public fears about the soviet environment is one new factor affecting some joint-venture plans + over the past two years soviet ministries have been talking to international firms including occidental petroleum co. and combustion engineering inc. of the u.s. montedison <unk> of italy and several japanese groups about jointly building and operating several big petrochemical plants + the plans have come under fire from soviet environmentalists and officials say many are likely to be scaled back or dropped + whatever the difficulties mr. gorbachev remains committed to increasing foreign trade + for political as well as economic reasons u.s. companies are at the top of his priorities a point he underscored by spending two hours walking around the u.s. trade show last week + talking to a small group of u.s. executives <unk> mr. gorbachev appeared <unk> for a big expansion in u.s.-soviet trade which now amounts to a <unk> $ N billion annually + the u.s. ranks fourth of countries that have concluded joint ventures behind west germany finland and italy + according to several people present at the meeting mr. gorbachev also supported the idea of concluding several commercial accords with the u.s. possibly at his next summit meeting with president bush + judging by the crush at the exhibition deprived soviet consumers are more than ready for u.s. products + hundreds of people lined up every day at the colgate-palmolive co. stand to receive a free tube of <unk> a commodity in <unk> short supply here + and <unk> <unk> at rjr nabisco inc. 's <unk> almost knocked over a glass <unk> in the rush to get a free <unk> cigarette <unk> + some u.s. products are <unk> into the soviet market under an emergency import program + both colgate and procter & gamble have received big orders for <unk> soap and <unk> + the american trade consortium says it is planning to ship some $ N million of consumer goods financed by bank credits in the first few months of next year + but the current soviet purchasing spree may be a one-time affair + the goal of most u.s. firms joint ventures remains <unk> + because the soviet ruble is n't convertible into dollars marks and other western currencies companies that hope to set up production facilities here must either export some of the goods to earn hard currency or find soviet goods they can take in a <unk> transaction + international competition for the few soviet goods that can be sold on world markets is heating up however + <unk> m. <unk> an entrepreneur from new jersey who buys soviet <unk> and <unk> <unk> <unk> for export to the u.s. says west german companies already have snapped up much of the production of these items + seeking to overcome the currency problems mr. <unk> 's american trade consortium which <unk> chevron corp. rjr johnson & johnson eastman kodak co. and <unk> co. has <unk> an elaborate scheme to share out dollar earnings largely from the revenues of a planned chevron oil project + several medical concerns including pfizer inc. hewlett-packard co. colgate and <unk> laboratories intend to pursue a similar consortium approach + it 's hard to invest capital here on the same basis as investing in other countries says dennis a. <unk> president of medical service partners inc. who is putting the medical consortium together + some u.s. entrepreneurs operate on a smaller scale + one group seeks to publish a u.s.-soviet medical journal in <unk> with the u.s.s.r. ministry of health + according to richard p. mills a <unk> official of the u.s. partner N copies of the quarterly will be printed in russian from next year + it will be financed by advertisements from u.s. companies and by simultaneous publication of an <unk> journal containing details of soviet medical <unk> + we found a market niche mr. mills boasts + it 's truly entrepreneurial + general electric co. was given an $ N million navy contract for nuclear <unk> parts + westinghouse electric corp. also won a $ N million navy contract for nuclear <unk> parts + federal data corp. was issued a $ N million navy contract for computer systems + american telephone & telegraph co. was awarded an $ N million navy contract for <unk> services + cray research inc. said it sold one of its newest and largest computer systems the cray <unk> to the united kingdom <unk> office + the system is the first to be sold through the joint marketing agreement between cray and control data corp + the supercomputer which lists for $ N million will be installed in the first quarter of N in the <unk> office 's headquarters in <unk> england + shareholders of nuovo banco ambrosiano <unk> voted to accept a bid of N lire $ N a share by france 's credit agricole for N N of the bank rejecting an earlier equal offer by italy 's <unk> <unk> <unk> + the move will give nuovo banco a badly needed foreign presence and make credit agricole the bank 's largest shareholder + it also opens a <unk> in the bank 's shareholders ' syndicate that could lead to a battle for control of the concern + nuovo banco will become italy 's biggest private-sector bank when it <unk> its scheduled merger with <unk> <unk> del <unk> by year end + credit agricole asked a milan court to sequester the nuovo banco shares the italian news agency <unk> reported + the <unk> is scheduled to rule on the request friday + no reason for the request was given + credit agricole officials could n't be immediately reached for comment + the decision to accept credit agricole 's bid valued at N billion lire $ N million came after a <unk> weekend meeting + nuovo banco 's second largest shareholder the fiat <unk> investment concern <unk> <unk> fought to have <unk> 's offer approved + <unk> which owns N N of nuovo banco <unk> in the final vote on credit agricole which was nonetheless approved by a majority of shareholders + the <unk> with credit agricole will give nuovo banco its first foreign presence since it was formed from the <unk> of the old banco ambrosiano which collapsed amid scandal after the death of chairman <unk> <unk> in N + since then the bank has strengthened its italian network and has posted strong results + the shareholders felt we needed a foreign presence more than we needed links with an insurance company an ambrosiano spokeswoman said + <unk> said in a statement that it reserves the right to take any action to protect its rights as a member of the syndicate + a company spokeswoman said the company had n't decided what measures to take but did n't rule out legal action + <unk> italy 's biggest insurer last month offered N lire a share for the nuovo banco stake held by banco <unk> di <unk> the bank 's largest shareholder which announced plans to sell the holdings earlier this year + a <unk> spokesman declined to comment on nuovo banco 's rejection of the insurer 's offer + on the milan stock exchange nuovo banco 's shares jumped to N lire each from N lire friday + qintex australia ltd. a media and resorts concern controlled by australian entrepreneur christopher skase announced a plan to restructure and sell assets to try to ease its financial problems + mr. skase a <unk> former newspaper reporter who chairs the company said in a statement that qintex will sell its N N stake in its upscale mirage resorts in australia and hawaii as well as three australian television stations + the sales are expected to raise more than N million australian dollars us$ N million mr. skase said + qintex australia has n't disclosed its borrowings but analysts estimate the company 's debt at a$ N billion + mr. skase also said the restructuring plan calls for the merger of qintex australia with qintex ltd. which owns N N of qintex australia + he said the move will significantly reduce administrative and operating costs but he did n't provide details of the merger + company officials said over the weekend that qintex australia 's bank creditors have become concerned about a <unk> of bad news at the company including a failed us$ N billion plan to buy mgm\/ua communications co. a beverly hills calif. movie and television production concern + friday qintex entertainment inc. a <unk> u.s. affiliate filed for protection from creditor lawsuits under chapter N of the u.s. bankruptcy code + analysts predicted that the move would further shake creditor confidence in qintex australia and force it to sell assets + the company 's latest moves were disclosed after the australian stock exchange suspended trading in shares of qintex australia and qintex ltd. because the companies had n't answered an exchange inquiry about the extent of their loans investments and deposits at qintex entertainment + mr. skase 's statement was addressed to the stock exchange and appeared to be a response to the inquiry + it said qintex entertainment owes qintex australia us$ N million in loans not secured by specific assets + qintex australia also said it has an investment of a$ N million in qintex entertainment shares + in the statement mr. skase said that on the basis of current interest rates in australia the company 's asset sales would reduce interest expense by about a$ N million a year in addition to eliminating certain liabilities + in march qintex sold N N of the three mirage resorts to japan 's nippon <unk> co. and mitsui & co. for a$ N million + yesterday 's statement did n't say whether the japanese companies will acquire qintex 's remaining stake in the resorts + before its shares were suspended from trading qintex australia plunged to N australian cents N u.s. cents a share yesterday from N australian cents friday + the shares traded at about a$ N in march when the plan to acquire mgm\/ua was announced + qintex ltd. shares sank to a$ N yesterday from a$ N friday + mr. skase 's statement cited four recent problems that he said had cut group cash flow by more than a$ N million + they were what he called an unlawful termination by mgm\/ua of the acquisition agreement with qintex high australian interest rates a pilots ' strike at australian domestic airlines that cut revenue at the company 's australian resorts and delays in completing a sale of two regional tv stations in <unk> state + mgm\/ua has sued qintex australia for breach of contract and fraud over the collapsed acquisition agreement and qintex australia has threatened a <unk> + qintex australia has n't yet reported results for the fiscal year ended july N + in his statement mr. skase said preliminary accounts showed that group profit before interest tax and depreciation will exceed a$ N million + he gave no further details + shareholders ' funds as of july N were estimated at more than a$ N billion mr. skase said compared with a$ N million a year earlier + the company will make adequate provisions to cover costs of the dispute with mgm\/ua and any loss from the investment in qintex entertainment he said + mr. skase also disclosed a disagreement among directors of qintex australia over certain fees claimed by qintex group management services <unk> a <unk> concern in which qintex australia executives have an interest + qintex australia paid the management company a$ N million in the latest fiscal year + mr. skase said most of the money went to other parties for expenses such as rent and travel but a smaller portion is owed to senior executives and others for management services + <unk> directors of qintex australia who must approve payments to the senior executives balked at the amount + two of the directors resigned mr. skase said so the payments have n't yet been approved + chip 's memory is here today here tomorrow + two companies plan to market a new chip with ceramic circuits that store data even when the power is off + today 's most widely used <unk> chips have volatile memories their data disappear if they are n't fed a steady diet of electricity so they need external power supplies + national semiconductor corp. and a start-up named <unk> corp. plan to start shipping so-called <unk> memories which can remember data for at least N years without any current flowing to them + the chips use materials such as lead <unk> <unk> to form <unk> switches that retain their data without electricity + developers caution that broad applications are several years away because the technology is n't fully refined + but <unk> of colorado springs colo. plans to start shipping commercial quantities of simple <unk> chips in december + the company expects the chips eventually to be used in devices that mimic a whole range of computer memory equipment including <unk> and hard-disk drives + national semiconductor is getting <unk> technology from <unk> corp. in <unk> <unk> + national says it agreed to acquire <unk> 's assets and will start shipping commercial quantities of its first chips including a <unk> memory next year + once production hurdles are overcome the chips could take over a significant part of the market + in addition to not <unk> an outside power source they are potentially cheaper to make because they require fewer manufacturing steps than conventional chips + military buyers have shown interest national says because <unk> chips resist <unk> radiation + and while today 's <unk> chips such as electronically <unk> <unk> <unk> memory chips ca n't be used in a computer 's central memory because they learn data slowly <unk> chips accept data at very high speeds + showing up in court without being there + an austin texas company plans to make it easy for you show up in court a thousand miles away without leaving town + witnesses often must travel long <unk> to give face-to-face <unk> before lawyers and court reporters + that means huge travel bills + and telephone or <unk> <unk> just do n't match physical <unk> + that could change thanks to lower long-distance rates and cheaper electronics + video <unk> corp. which markets <unk> systems is working with court reporters to wire a nationwide network to allow <unk> by live television + the company installed a prototype system that <unk> dallas with miami over digital phone lines + and it is preparing to set up shop in chicago new york and N other cities where <unk> agencies can tie conference rooms into the network + while lawyers arranged individual <unk> before the formal network of court reporters should make things easier and cheaper + an attorney will be able to use the network for an hourly fee of between $ N and $ N depending on the quality of the picture to take <unk> from witnesses in any of the connected cities + japanese reverse <unk> on patent protection + japan 's <unk> of u.s. patents has been a <unk> point for american chip makers + now at least one japanese company is turning the courtroom tables + until now most japanese charges have been responses to suits against them + but last year hitachi ltd. surprised japan 's electronics industry when it accused korea 's <unk> electronics co. of using hitachi technology to make dynamic <unk> memory chips + a settlement was reached but was n't made public + and hitachi went on the offensive against the u.s. 's motorola inc. earlier this month with a suit charging that motorola 's new <unk> chip <unk> on a hitachi patent + another recent hitachi suit <unk> motorola of reverse engineering a hitachi technology a <unk> from a nation of champion reverse engineers + the moves illustrate the more aggressive attitude toward patent protection that patent experts say japan is starting to take + hitachi made the <unk> charges in an amendment to a <unk> filed in a federal district court in texas after motorola sued hitachi for patent violation + hitachi charges motorola has engaged in fraudulent and <unk> conduct in the procurement of certain motorola patents used in motorola 's <unk> microprocessor chip + translation motorola appears to have taken a hitachi technology that is <unk> in the u.s. hitachi says and tried to make it look like a new technology + motorola either denied or would n't comment on the various charges + odds and ends + computer chips that <unk> human vision have been developed by japan 's sharp corp + they mimic the brain by looking at an image <unk> the fundamentals <unk> corners and lines and <unk> them into computer data + sharp says the set of chips could improve fax machines graphics computers or <unk> systems that recognize <unk> features + an n.v <unk> unit has created a computer system that processes video images N times faster than conventional systems + using reduced <unk> computing or risc chips made by <unk> of <unk> ala. the system <unk> the image it sees into N digital <unk> each processed by one chip + tandy corp. citing sluggish sales of <unk> goods said net income dropped N N for the first quarter ended sept. N + the results which represented the fifth consecutive quarter of <unk> earnings for the big electronics retailer disappointed analysts and traders + tandy 's stock fell $ N a share to close at $ N in new york stock exchange composite trading + net for the quarter was $ N million or N cents a share down from $ N million or N cents a share a year earlier + the company said earnings would have increased if it had n't been actively <unk> its shares thus increasing its interest expense and reducing its interest income + tandy had N million shares outstanding at sept. N down from N million a year earlier + revenue rose N N to $ N million from $ N million + tandy said consumer electronics sales at its radio shack stores have been slow partly because of a lack of hot new products + radio shack continues to be lackluster said dennis <unk> analyst with <unk> <unk> & turner in dallas + he said tandy has done a decent job increasing sales by manufacturing computers for others and expanding sales of its grid systems corp. subsidiary which sells computers to bigger businesses but it 's not enough to offset the problems at radio shack + sales at radio shack stores open more than a year grew only N N in the quarter from a year earlier he said + as a result mr. <unk> said he cut his fiscal N per-share earnings estimate for tandy to $ N from $ N + tandy earned $ N million or $ N a share in the year ended june N + barry bryant an analyst with drexel burnham lambert inc. said tandy also has suffered from <unk> sales of its computers aimed at the home and <unk> market which are <unk> and cheaper than computers aimed at the corporate market + tandy has added several new products to that line including a laptop computer priced around $ N and is focusing its advertising on the <unk> software that is packaged with its machines + mr. bryant and other analysts hope all those moves will combine to help tandy 's results improve in the important christmas quarter + they 've been promising N N to N N growth based on the strategic moves they 've made he said + if the earnings acceleration is to take place that should be the quarter + at a private dinner thursday drexel burnham lambert inc. chief executive frederick joseph delivered a <unk> message about the junk bond market to officials of prudential insurance co. of america + mr. joseph conceded the junk market was in disarray according to people familiar with the discussion + he said drexel the leading underwriter of high-risk junk bonds could no longer afford to sell any junk offerings if they might later become troubled because drexel <unk> losing its highly lucrative junk franchise + the dinner was a stark confirmation that N is the worst year ever for the $ N billion junk market + and investors and traders alike say the current turmoil could take years to resolve + amid the market <unk> even drexel which has the <unk> and most loyal following of junk bond investors is pulling in its <unk> + although the big investment bank still dominates the junk market drexel has been unable to stem the fallout from growing junk bond defaults withdrawn new offerings redemptions by shareholders in junk bond mutual funds and an exodus of <unk> investors + for many money managers the past four months have been <unk> + this is the worst <unk> ever in the junk market and it could take years before it 's over says mark <unk> a senior vice president at standard & poor 's corp. a credit rating company + in the third quarter for example junk bonds those with less than an investment-grade rating showed negative returns the only major sector of the bond market to do so + since the end of last year junk bonds have been outperformed by all categories of investment-grade bonds including <unk> treasury securities + the junk market which <unk> to $ N billion from less than $ N billion at the start of the decade has been declining for months as issuers have <unk> under the weight of hefty interest payments + the fragile market received its biggest jolt last month from campeau corp. which created its u.s. retailing empire with more than $ N billion in junk financing + campeau developed a cash squeeze that caused it to be <unk> on some interest payments and to put its prestigious bloomingdale 's department store chain up for sale + at that point the junk market went into a tailspin as buyers disappeared and investors tried to sell + in an interview mr. joseph says his dinner discussion with the prudential executives acknowledged problems for junk + what i thought i was saying is that the market is troubled but still viable and <unk> enough quite <unk> which is not at all bad he says + nobody 's been perfect in their credit judgments the past couple years and we 're going to make sure our default rates are going to be in the acceptable <unk> of the market + what has jolted many junk buyers is the sudden <unk> that junk bonds can not necessarily be bought and sold with the ease of common stocks and many investment-grade bonds + unlike the new york stock exchange where buyers and sellers are quickly matched the junk market where risky corporate loans are traded is sometimes closed for repairs + at closely held <unk> securities corp. junk bond money managers <unk> k. <unk> and <unk> h. <unk> say the problems of the junk market go deeper than a temporary <unk> + in recent months they say there has been heavy selling of junk bonds by some of the market 's traditional investors while new buyers have n't materialized to replace them + wall street securities firms the primary source of liquidity for the high yield market have been net sellers of junk bonds because of trading losses <unk> said in a recent grim report to customers + mutual funds have also been net sellers of junk bonds as junk 's relatively poor performance and negative press coverage have produced <unk> redemptions by shareholders <unk> said + investors trying to raise cash have sold large liquid issues such as rjr holdings corp. and <unk> co. declines in these benchmark issues have contributed to the market 's <unk> + and <unk> said buying has been severely reduced because savings and loans have been restricted in their junk purchases by recently passed congressional legislation + in fact savings and loans were sellers of high yield holdings throughout the quarter <unk> said + ms. <unk> and ms. <unk> say they are managing their junk portfolios <unk> building cash and <unk> upgrading the overall quality + meanwhile prudential the nation 's largest insurer and the biggest investor in junk bonds has seen the value of its junk bond portfolio drop to $ N billion from $ N billion since august because of falling junk prices + we certainly do have a lack of liquidity here and it 's something to be concerned about says james a. <unk> a managing director + i have no reason to think things will get worse but this market has a <unk> for surprising us + this market teaches us to be <unk> + the junk market 's yield <unk> are learning a real painful lesson he says + although the majority of junk bonds outstanding show no signs of default the market has downgraded many junk issues as if they were in trouble says stuart <unk> manager of aetna life & casualty insurance co. 's $ N billion investment-grade public bond portfolio + but we think the risks are there for things getting a lot worse + and the risks are n't appropriate for us he says + the big insurer unlike prudential owns only about $ N million of publicly sold junk bonds + the string of big junk bond defaults which have been a major cause of the market 's problems this year probably will <unk> some analysts say + if anything we 're going to see defaults increase because credit ratings have declined says paul <unk> associate professor at the massachusetts institute of technology 's sloan school of management + mr. <unk> whose study on junk bond defaults caused a furor on wall street when it was disclosed last april says this year 's junk bond defaults already show a high <unk> with his own findings + his study showed that junk bonds over time had a cumulative default rate of N N + one indication of a growing number of junk defaults mr. <unk> says is that about half of the $ N billion of corporate bonds outstanding that have been lowered to a default rating by s&p this year are junk bonds sold during the market 's big issue years of N through N + these bonds now rated <unk> include junk offerings by <unk> industries columbia savings colorado first texas savings association <unk> financial corp. integrated resources inc. metropolitan broadcasting corp. resorts international inc. southmark corp. and <unk> inc + obviously we got a lot more smoke than fire from the people who told us the market was n't so risky says bradford cornell professor of finance at university of california 's anderson graduate school of management in los angeles + mr. cornell has just completed a study that finds that the risks and returns of junk bonds are less than on common stocks but more than on investment-grade bonds + mr. cornell says the junk market is no <unk> as drexel claimed but it also is n't a disaster as the <unk> say + despite the junk market 's problems drexel continues to enjoy a loyalty among junk bond investors that its wall street rivals have n't found + during the past three weeks for example drexel has sold $ N billion of new junk bonds for turner broadcasting co. uniroyal chemical continental air and duff & phelps + still the list of troubled drexel bond offerings <unk> that of any firm on wall street as does its successful offerings + troubled <unk> issues include resorts international <unk> integrated resources sci tv gillette holdings western electric and southmark + quality junk bonds will continue to trade well says michael <unk> chairman of salomon brothers asset management inc + but the deals that never should have been brought have now become nuclear waste + as <unk> <unk> who owns an art <unk> company <unk> her <unk> <unk> she <unk> off the names of a few <unk> prince charles <unk> <unk> <unk> ferguson john <unk> milton petrie + then <unk> a diamond ring as big as the <unk> my day diamond <unk> she told her two <unk> that she is on the board of the vatican museum in rome + as it turns out the board has a lot of important members including <unk> <unk> former <unk> general of the u.s. mrs. henry <unk> widow of the inventor of <unk> <unk> and vincent murphy an investment banker at merrill lynch & co + but mrs. <unk> did n't mention any of them + <unk> <unk> has a way with names says james <unk> a <unk> columnist for <unk> and son of joseph <unk> a founder of <unk> + like which are <unk> and which are not + with the fall social season well under way <unk> are out in force trying to <unk> their <unk> and sometimes put down their <unk> + but the truth is that almost everyone from real-estate agents to city <unk> <unk> and a surprising number of people have an ancient uncle who claims he lived next door to the <unk> who did the <unk> kids + in case you have forgotten his name was rudolph <unk> + name-dropping is pervasive and getting more so as society becomes more complex and <unk> says herbert <unk> a new york <unk> with a <unk> <unk> + it can be an avenue of <unk> to a certain sector of society + it provides some people a needed sense of <unk> and can help open up a conversation with someone you do n't know + like the long island <unk> in the theater district the other day who <unk> to a <unk> that she once met <unk> <unk> + i was having a drink in <unk> 's when all of a sudden i saw a woman 's <unk> coming up the steps on the second floor and she was wearing <unk> <unk> + i knew it was someone important so i followed her into the <unk> room and sure enough it was <unk> + so i said <unk> + and she said <unk> + can you imagine + <unk> said <unk> to me + some people must drop names call it an <unk> <unk> + they ca n't help talking about the big important people they know even if they do n't really know them says dr. <unk> + <unk> <unk> a new york writer who changed his name from william stretch in N is an <unk> <unk> + i do it <unk> and <unk> and while it may occasionally get me into trouble it 's also gotten me access to parties and society he says + name-dropping recently helped mr. <unk> crash a party fame magazine threw for N of the N people mentioned in the <unk> of the late andy <unk> + i guess i might have asked <unk> to leave but he drops so many good names we decided to let him stay says steven greenberg publisher of fame + after all <unk> was the ultimate <unk> dropping five a day in his <unk> + and <unk> was mentioned twice although very briefly and in passing + mr. <unk> says that at the party he <unk> to malcolm <unk> publisher of <unk> magazine <unk> been in the columns together mary boone a new york art dealer i think she knows me but i 'm not sure and <unk> <unk> the actress she knows me but we 're not really the best of friends + mr. <unk> the <unk> columnist says there are people who actually plan whose names they are going to drop before attending a party + these <unk> do n't <unk> only their <unk> with the <unk> <unk> <unk> or <unk> mosbacher + they even drop <unk> names like <unk> <unk> whom everybody these days apparently has heard of but no one really knows says mr. <unk> + it 's the <unk> of name-dropping that counts + but name-dropping has other benefits often civic + in the name of civic pride and from the desire to <unk> a negative image some city <unk> seek to link their <unk> with the most <unk> names the city has to offer + take cleveland + it has gotten a bad rep because its once heavily <unk> <unk> river caught fire because former mayor ralph <unk> set his hair on fire with an <unk> <unk> and because its proposed rock <unk> roll hall of fame was recently refused an <unk> grant + some people call it the mistake on the lake lake <unk> that is + it helps to point out how many important people came through cleveland on their way to the top says george miller executive director of the new cleveland campaign a nonprofit organization devoted to citing the city 's strengths + mr. miller notes that actor paul <unk> 's family owned a <unk> store in cleveland that the late actress margaret hamilton who played the bad <unk> in the <unk> of <unk> once ran a <unk> school in cleveland and that <unk> bob hope 's father a <unk> once worked on a church next to <unk> hall cleveland 's main concert hall + power names like that do n't hurt the city 's reputation mr. miller says + in hollywood an average family can gain <unk> from moving into a home vacated by the famous or near famous + why we even just sold a <unk> house in van <unk> and were able to keep the price firm in a weak real-estate market by noting that the original lone <unk> lived there says david <unk> a sales associate with jon douglas co. a los angeles real-estate agency + most people ca n't even remember his name + it is john hart + mr. <unk> says that a <unk> property <unk> the san fernando valley is priced at $ N million because the late actor <unk> <unk> once lived there + if <unk> had n't lived there the property might have been priced $ N million lower says mr. <unk> noting that <unk> 's house has been <unk> and only the <unk> pool remains + press agents and public-relations practitioners are notorious <unk> + and some even do it with <unk> <unk> + <unk> <unk> a financial <unk> in new york sometimes uses it to get the attention of journalists who try to avoid him + he says that when dan dorfman a financial columnist with usa today has n't returned his phone calls he leaves messages with mr. dorfman 's office saying that he has an important story on donald trump <unk> <unk> or marvin davis + he admits he has no story on any of them on these occasions + but it does get him to return my calls and it makes me feel better for the times he 's given me the <unk> mr. <unk> says + there are of course obvious dangers to <unk> <unk> name-dropping + <unk> <unk> a publicity agent for the <unk> office in los angeles warns that dropping the wrong name labels the <unk> as a fake and a fraud + get caught and you 're dead in the water says mr. <unk> + mr. <unk> says that elizabeth taylor a client <unk> being called <unk> + if directors or producers phone me and say they know <unk> i know they 've never met her + she prefers elizabeth + in new york society pat <unk> the very social wife of author william <unk> has the <unk> mrs. <unk> and <unk> + and her husband sometimes calls her <unk> + but call her <unk> and it 's a sure <unk> you 're not in her circle because she does n't use that name says joan <unk> <unk> of avenue magazine a monthly publication sent to all the right names + john spencer <unk> a <unk> of the late sir <unk> <unk> former prime minister of great britain is n't that impressed with most <unk> he meets + that 's because they only drop mere names says mr. <unk> + currently writing his <unk> mr. <unk> an artist tells how <unk> such as the late jean paul <unk> the oil <unk> were in fact known only by one initial their last + when you 're at the club you ask whether they 've spoken to <unk> + now they know who you mean and you know who you mean + but no one else does + now that 's name-dropping if you know what i mean + part of a series + <unk> ga. + the <unk> strip in this booming suburb runs nearly five miles along <unk> parkway stretching from the <unk> highway that circles atlanta to the big chicken a <unk> fast-food restaurant and local landmark + <unk> years ago in the <unk> of suburban <unk> just a handful of dealerships were here + now there are N + alongside such <unk> names as chevrolet ford and dodge are <unk> that did n't exist until three years ago <unk> sterling hyundai + under construction is the strip 's <unk> showroom the future home of lexus a luxury <unk> launched by toyota motor corp. just two months ago + the 1980s have spawned an explosion of consumer choice in america in everything from phone companies to <unk> + and especially as the <unk> parkway strip <unk> in cars + americans now can choose among N different models of cars vans and trucks up from just N when the decade began according to automotive news a trade publication + for car marketers it has become a much tougher battle to keep loyal customers from <unk> to one of the new makes on the block + for american car buyers the proliferation of choice is both <unk> and confusing + malcolm <unk> vice chairman of the jordan <unk> case & taylor advertising agency in new york calls the proliferation <unk> mania + he says the number of automobile choices is causing stress among consumers today and that people will simply ignore new models that lack a <unk> image + the winners he predicts will be brands from car makers that have traditionally been associated with quality and value + he says it 's important for a new make to be as distinctive as possible while still retaining links to the parent company 's quality image + he <unk> toyota and nissan motor co. for creating separate divisions for their new luxury models rather than simply adding more <unk> to their standard car lines + some auto executives believe the benefits of more choice outweigh the <unk> + there 's more noise out there and the consumer may have to work harder to cut through it says vincent p. <unk> executive director of market research and planning at general motors corp + but the reward is that there 's less need to make <unk> in choosing one 's wheels + <unk> page of north salt lake city utah likes the broader selection + she wants something big and already has looked at the chrysler new yorker and lincoln town car + now the <unk> car <unk> is <unk> in on a <unk> van figuring that it 's just the thing to haul nine <unk> and pull a boat at the same time + that seems to be what all my friends are using to take the <unk> to the lake she says + market <unk> in cars is n't new but it 's far more extensive than when alfred p. sloan jr. <unk> the idea N years ago + the legendary gm chairman declared that his company would make a car for every <unk> and purpose + now there are many cars for every <unk> and purpose + just four years ago gm planners divided the combined car and truck market into seven segments + today they identify N distinct segments for cars and another N for trucks and vans + the number of makes has <unk> because the u.s. is the world 's biggest and <unk> market for automobiles virtually every auto maker wants to sell here + for every brand like renault or fiat that has been squeezed out others such as <unk> <unk> and mitsubishi have come in + detroit tries to counter the foreign <unk> with new brands of its own + gm launched the <unk> <unk> this year to sell cars made in partnership with foreign auto makers and next year gm 's long-awaited <unk> cars will make their debut + ford motor co. created the merkur <unk> in N to sell its <unk> <unk> <unk> in the u.s. + but slow sales forced ford to kill the brand just last week + when consumers have so many choices brand loyalty is much harder to maintain + the wall street journal 's american way of buying survey found that N N of today 's car buyers tend to switch brands + for the survey peter d. hart research associates and the roper organization each asked about N u.s. consumers about their buying habits + which cars do americans favor most these days + it 's hard to <unk> but age seems to be the best <unk> + adults under age N like sports cars luxury cars <unk> and imports far more than their elders do + three of every N buyers under N would prefer to buy a sports car compared with just N N of adults N and over according to the journal survey + young consumers prefer luxury cars by a N N to N N margin even though older buyers because of their incomes are more likely to actually purchase a luxury car + perhaps most striking N N of households headed by people aged N to N have at least one foreign car + that 's true of only N N of households headed by someone N or older + generally imports appeal most to americans who live in the west and are <unk> affluent and especially young + for many baby boomers buying a domestic car is a totally foreign experience says christopher <unk> <unk> analyst with <unk> power & co. of <unk> hills calif + such preferences <unk> even though many americans believe differences between imported and domestic cars are <unk> + only N N of americans now believe that foreign cars get better gas <unk> than domestic models the journal survey found down from N N in N + some N N give foreign cars higher quality ratings down from N N two years ago + on the other hand only N N say foreign cars are less comfortable than u.s. models down from N N in N + people in the automotive business disagree over how susceptible younger americans are to brand switching + once buying habits are formed they 're very hard to break declares thomas <unk> executive vice president for nissan 's u.s. sales operations + but out on <unk> parkway ted <unk> sees it differently + the competition is so intense that an owner 's loyalty to a dealership or a car is virtually <unk> says mr. <unk> vice president of ed <unk> <unk> one of the first dealerships to <unk> on the strip + thus the very <unk> of baby boomers may make it possible to win them back just as it was possible to lose them + the battle for customer loyalty is evident along the <unk> parkway strip + ed <unk> <unk> recently established a special section in the service department for owners whose cars are less than a year old so they get <unk> service + just down the street chris <unk> invites serious shoppers to <unk> a new <unk> to any other dealership along the strip and compare the cars <unk> + manufacturers too are stretching further to lure buyers + gm 's cadillac division ignoring detroit 's <unk> <unk> that safety does n't sell is airing television commercials touting its cars ' safety features + cadillac may be on to something + some N N of the survey respondents said they would buy <unk> <unk> even if they carry a medium or high price tag + more than N N felt the same way about air bags + both features appealed most to buyers under N + in contrast <unk> computers power seats and <unk> engines had little appeal + but even a little appeal has a lot of attraction these days + gm 's <unk> division is offering a <unk> <unk> engine on its grand <unk> model even though it expects to sell only about N cars equipped with that option + the reason items with narrow appeal can be important in a market as <unk> as today 's + americans spent more than $ N billion on new cars and trucks last year and just N N of that market exceeded polaroid co. 's sales of $ N billion + even if it 's only N N says gm 's mr. <unk> would you throw away sales the size of polaroid + american telephone & telegraph co. said it will lay off N to N technicians here effective nov. N + the workers install maintain and repair its private branch exchanges which are large <unk> telephone networks + it 's a california crime <unk> worthy of an <unk> stanley <unk> title the case of the <unk> palm trees + edward <unk> <unk> one morning last month to find eight <unk> in his front yard where his <unk> <unk> <unk> called <unk> once stood + days later the thieves returned and <unk> out more this time adding <unk> to injury + the second time he says they left the <unk> + no <unk> crime <unk> <unk> is <unk> up all over southern california bringing big <unk> to <unk> who know their <unk> + <unk> the most popular of which is the <unk> palm are <unk> versions of california 's famous <unk> <unk> with <unk> <unk> and <unk> <unk> + because the <unk> is relatively rare and grows only a couple of inches a year it 's a <unk> lawn <unk> a <unk> tall <unk> can retail for $ N and <unk> ones often fetch $ N or more + <unk> somebody has realized it 's easy money to steal these things says <unk> <unk> a research associate specializing in <unk> at the los angeles state and county <unk> + just last week would-be thieves damaged three <unk> at mr. <unk> 's home in the eagle rock section before something frightened them off <unk> + it 's hard to think someone is <unk> your garden he says + police suspect that the criminals who dig up the plants in the dead of night are selling them to <unk> or <unk> + the <unk> has become a popular <unk> in tony new housing <unk> apparently giving the <unk> a ready market for their <unk> <unk> + thieves are going to find anybody who has enough <unk> to plant these things in their front yard says william <unk> an investigator with the police department in garden <unk> calif. where five such <unk> have been reported in the past several weeks + the department is advising residents to plant <unk> if they must in the back yard and telling <unk> to be on the <unk> for anyone trying to palm one off + but for those californians who want exotic gardens out front where neighbors can appreciate them there 's always harold smith 's approach + after three <unk> were stolen from his home in garden <unk> i put a big iron stake in the ground and tied the tree to the stake with a chain he says <unk> + and you ca n't cut this chain with <unk> <unk> + program trading on the new york stock exchange in september rose to its highest recorded level as a percentage of total monthly trading volume + september program trading amounted to N N of average daily new york stock exchange volume of N million shares the largest percentage since the exchange began making such figures public in july N + a daily average of N million shares traded in program strategies in september the <unk> level ever + the highest level was in june N when a daily average of N million shares traded in program strategies + average daily trading volume in june of N million shares was considerably higher than in september + program trading amounted to N N of average daily volume in june + the big board says program trading describes a variety of strategies involving the purchase or sale of a basket of N or more stocks + the most controversial of these is stock-index arbitrage in which traders buy or sell baskets of stocks and offset the position with an opposite trade in stock-index futures to lock in profits + it 's the most controversial form of program trading because it can create abrupt price swings in the stock market + salomon brothers inc. was the top program trader in september but most of the firm 's activity involved portfolio trading strategies other than stock-index arbitrage + overall salomon reported program trading volume of N million shares + the top stock-index arbitrage firm last month was morgan stanley & co + of morgan stanley 's N million shares in program trades for the month N million were in stock-index arbitrage trades + behind <unk> morgan stanley were kidder peabody & co. goldman sachs & co. and cs first boston inc. 's first boston corp. unit + a group of shareholders filed suit against imperial corp. of america drexel burnham lambert inc. first executive corp. and others charging them with artificially <unk> imperial 's stock price to protect certain major investors + the complaint filed in federal district court <unk> imperial and other defendants of issuing false and misleading financial data + it also charges that imperial the holding company for imperial savings & loan experienced major losses and <unk> because of improper assessment of the risks of junk-bond investments and wholesale consumer loan packages + the suit seeks unspecified damages + imperial is in the midst of reducing its junk-bond holdings and getting out of the investment banking business in order to return to traditional thrift activities + the derivative suit is similar to a class-action complaint filed earlier this year + imperial said in a statement it expects other complaints to be filed in the wake of the original suit and a recent article in barron 's magazine that focused on the company 's problems + although an imperial spokesman said the company had n't yet been served with the derivative suit he reiterated the company 's statement that it would vigorously defend itself against the class-action suit + spokesmen at drexel and first executive said the companies had n't yet been served with the suit + in a separate complaint also filed in federal court here shareholder max <unk> of new york charged imperial its top executives and directors with breach of fiduciary duty and <unk> the company 's assets + imperial said it had n't been served with this suit either + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + rhone-poulenc s.a. paris said it completed the purchase of the specialty chemicals operation of <unk> corp. a british mining and industrial group + rhone-poulenc a chemical and pharmaceutical company said <unk> chemicals has annual sales of about $ N million + it did n't release terms of the transaction + consumer spending in britain rose N N in the third quarter from the second quarter and was up N N from a year ago the central statistical office estimated friday + a group including gene e. phillips former chairman of southmark corp. and william s. <unk> former vice chairman of southmark lowered its stake in the dallas real estate concern to N N according to a filing with the securities and exchange commission + the group said it sold N southmark common shares from sept. N to oct. N for N cents to N cents a share + the filing said the group continues to hold N remaining shares + eastman kodak co. seeking to position itself in the potentially huge high-definition television market unveiled a <unk> that can transform conventional <unk> film into high-definition video + the move also helps the rochester n.y. photographic giant ensure that its <unk> film business for which it holds a <unk> monopoly supplying every hollywood movie company is n't made <unk> by the <unk> hdtv business + while the prototype <unk> is costly it 's being <unk> by the <unk> hdtv industry as a way of increasing the number of high-quality shows that can be seen on the new medium + the industry has been waiting with <unk> breath for the machines to come along says david <unk> president of <unk> <unk> five productions inc. a new york pioneer in high-definition programming + he notes that industry executives have until now worried that they would face a severe shortage of programs once consumers begin replacing their tv sets with <unk> + japanese electronic giants such as sony corp. and hitachi ltd. have focused almost entirely on hdtv hardware and virtually ignored software or programs shot in high-definition + and only a handful of small u.s. companies are engaged in high-definition software development + it 's estimated that just about N hours of <unk> programming is currently available for airing + kodak says its new <unk> hdtv <unk> will help alleviate the problem by allowing programmers and broadcasters to convert movies and television programs shot in <unk> <unk> film into high-definition video + consumers will be able to switch on their hdtv sets and get all the <unk> benefits the high-tech medium offers + otherwise they 'd be watching programs that are no different in quality from what they currently view on color tvs + it would be like watching a black and white movie on a color tv set says malcolm g. <unk> chairman of the film and video department at the rochester institute of technology + the new <unk> are a critical link between film and the television <unk> says <unk> d. <unk> vice president and general manager of kodak 's motion picture and <unk> products division + kodak wo n't disclose the cost or when its <unk> will be on the market but it 's estimated the machine may be available within two years + a similar machine already on the market made by rank <unk> ltd. a unit of rank <unk> costs about $ N + and the potential market is tremendous industry experts say + if hdtv takes off in the u.s. there will be demand for some N to N hdtv <unk> known in the industry as <unk> + demand will come first from programming production companies and then from television stations + the <unk> is head and <unk> above anything else i 've seen says richard j. <unk> vice president engineering and development at mca inc. 's universal city studios + and mr. <unk> the program producer contends that kodak 's move is a sound marketing decision + they ca n't afford to stay out of hdtv + indeed the stakes are high + the u.s. electronics industry estimates that the hdtv market will total about $ N billion over the next two decades with an additional $ N billion expected to go for related products + <unk> break down images into more than N lines compared with N for today 's <unk> providing considerably sharper detail + and the sets are wider <unk> the <unk> of a movie screen + but the financial rewards are n't expected soon nor are they guaranteed + experts estimate the first sets of <unk> wo n't be available for another five to N years and will probably retail for more than $ N each in today 's dollars + some critics say they wo n't be quickly embraced by consumers because of the high price + nevertheless kodak could n't risk letting hdtv turn its <unk> film business into a <unk> + kodak understands hdtv is where everybody is going says <unk> 's mr. <unk> + yet another political scandal is <unk> japan + but this time it 's hurting opposition as well as <unk> members + and as it <unk> it 's <unk> some of the more <unk> and <unk> aspects of japanese society + already ruling liberal democratic party demands that opposition members testify under <unk> in parliament have stalled one budget committee session and forced the committee to plan a special two-day investigation at the end of the month + but the scandal itself is so <unk> that <unk> members are divided between those who want to pursue the matter in hope of <unk> the opposition and those who favor leaving well enough alone + the opposition can be the most hurt because everyone already figures the ldp is that kind of <unk> says <unk> <unk> former aide to ldp <unk> <unk> <unk> and now an independent analyst + but he adds we ca n't tell where it will go at all because we 're still in the middle of it + this time the scandal centers on donations made by the <unk> pachinko <unk> industry + pachinko a kind of <unk> is japan 's favorite form of legal gambling + the donations so far appear to be small especially compared with the huge sums that changed hands in the recruit co <unk> scandal that plagued the ruling party last year + but the implications could be great + pachinko is slightly on the <unk> side often linked to the lower ranks of japan 's <unk> and regularly at the top of annual lists of tax <unk> + recently the industry has faced the threat of new restrictions and political donations may have been made with the intent to bribe + also about N N of pachinko <unk> owners are korean many of whom maintain close ties with north or south korean residents ' organizations and donations by such foreign groups are illegal in japan + to many japanese pachinko is benign or <unk> <unk> + <unk> <unk> pachinko <unk> <unk> from the main streets and narrow <unk> of cities and towns across the country + <unk> pass hours watching the lights <unk> and listening to the metal balls <unk> as much to gamble as to get a little time to be <unk> alone with their thoughts + at N yen $ N for a handful of balls pachinko is a common <unk> and has been since it took root as cheap entertainment in the years after world war ii + but the total of all those <unk> balls has created an industry with a reported annual income of N trillion yen almost $ N billion or nearly the size of japan 's <unk> automobile industry + and because the pachinko industry is regularly at the top of annual lists for tax evasion some observers estimate the real income could be as much as N trillion yen + if that money were being taxed it could bring the government a badly needed several trillion yen + in N an attempt was made to crack down on the industry with tougher restrictions + then in N a proposal to keep better track of income by selling prepaid cards for pachinko was <unk> in parliament + the proposal split the industry in two along the lines of national <unk> north koreans oppose the plan while south koreans japanese and taiwanese accept it or are neutral + in august a conservative weekly magazine reported that a pachinko industry organization donated money to japan socialist party members + the magazine alleged that in making the donations the pachinko industry may have been offering <unk> to win support in the battle against prepaid cards or it may have been laundering money back and forth between the <unk> and the north korean residents ' organization the chosen <unk> + the chosen <unk> and the <unk> immediately denied the report + and at first neither the opposition nor the ldp wanted to pursue the issue + but the press kept it alive as with the recruit scandal lists began circulating with names of people who had received money + within a matter of weeks <unk> magazines reported that members of the ruling ldp had received much larger donations from pachinko organizations + so far though there have been no allegations that the contributions the ldp members received amounted to <unk> + then the two camps <unk> the <unk> reports that chosen <unk> had donated directly to <unk> members were rapidly <unk> by statements that the south korean residents ' organization had long been donating directly to ldp members + the <unk> admitted oct. N that its members received about eight million yen from the pachinko organization and charged ldp members with receiving N million yen $ N and other opposition parties with taking about N million yen + on friday the chief cabinet secretary announced that eight cabinet ministers had received five million yen from the industry including N yen $ N by prime minister <unk> <unk> + no one has alleged that the donations were by themselves illegal + direct donations from either of the residents ' organizations would be illegal because the groups are defined as foreign but both groups deny making direct donations + they say it s possible some of their members may be donating privately + the issue is further complicated because although the organizations represent korean residents those residents were largely born and raised in japan and many speak only japanese + that they retain korean <unk> and ties is a reflection of history their parents were shipped in as <unk> during the decades when japan occupied korea before world war ii and the discrimination that still faces koreans in japanese society + many japanese think it only natural that the organizations or their members would <unk> to politicians the way many japanese do to win favor or support + both residents ' organizations admit to receiving some funding from abroad + but ldp members and supporters of the prepaid card idea tend to speak in <unk> about the <unk> 's alleged donations <unk> that north korean money would be more suspect than south korean because north korea is communist and south korea is an ally + when robert mcduffie was N he got a chance to play in the starting lineup for his high school basketball team in <unk> <unk> + unfortunately his mother had tickets for a recital by <unk> perlman the same night and she was <unk> about his attending + i threw such a fit says mr. mcduffie who had begun violin studies at the age of six + but once perlman started playing i did n't give a damn about basketball + <unk> i went home and practiced for three hours + today it 's obvious that the <unk> <unk> <unk> <unk> made the right choice + at N mr. mcduffie has a rich <unk> tone an <unk> <unk> precision and an increasingly busy schedule + he 's currently in the midst of a <unk> u.s. tour with <unk> <unk> and the warsaw <unk> with stops including charleston s.c oct. N <unk> fla oct. N tampa fla oct. N and miami oct. N + later this season he gives a recital at washington 's kennedy center and appears as <unk> with several major <unk> + yet mr. mcduffie 's career has developed at a slower pace than those of some of his better known <unk> + during the late 1970s he was part of a musical <unk> pack a group of <unk> <unk> who studied at the <unk> school with the noted <unk> <unk> delay + his violin <unk> included <unk> <unk> a <unk> of <unk> stern who performed with major <unk> while still a student <unk> lin who joined the <unk> of <unk> artists inc. at the age of N and <unk> <unk> who launched her career by winning the N <unk> competition + i thought i was over the hill at N recalls mr. mcduffie an <unk> man with pale blue eyes and a light southern <unk> + but i was n't ready for a career at that time + young mcduffie 's first violin teacher was <unk> <unk> a <unk> <unk> who taught in the <unk> public school system + he taught me how to play like a <unk> jokes the <unk> + i did n't learn to count until i got to <unk> + after studies at that <unk> 's <unk> division with an assistant to the legendary <unk> ivan <unk> he switched at the college level to miss delay mr. <unk> 's longtime assistant and ultimately his rival + i think i had to prove myself to her says mr. mcduffie + but she was always encouraging + she only put her foot down twice he continues + in my freshman year my <unk> was known as a party animal + she thought i was n't getting my practicing done + as the <unk> tells it his <unk> looking teacher put her hands on her <unk> <unk> her foot and said you 've just got to get the <unk> <unk> out of there + the second incident took place after mr. mcduffie gave an ambitious student recital and was feeling rather pleased with himself + miss delay requested that he come to her studio with a tape of the recital + we <unk> to the <unk> <unk> he recalls and she said you hear the first note that <unk> + that 's the only note that 's truly in tune + that 's the most important experience i 've had with any teacher he says because she taught me how to listen + now when i play with <unk> the musicians often <unk> me on my <unk> + it was also at <unk> that mr. mcduffie discovered his <unk> for conservative <unk> american <unk> such as david diamond and samuel barber + after winning a school competition with a performance of the latter 's violin <unk> mr. mcduffie was invited to play the work for the <unk> who was dying of cancer + barber was <unk> by the <unk> looking very pale recalls the <unk> who performed the work with a piano <unk> at the <unk> 's apartment + he did n't say much but what he said was important because it 's not in the score + there 's a beautiful <unk> <unk> he 'd kill me if he heard me say that throughout the first movement + the only time the violin has it is right at the end + it 's written <unk> in the score and i played it that way kind of <unk> + and he <unk> out <unk> <unk> sweet sweet + so we did it over he adds + i played very <unk> with the tip of the <unk> + if a <unk> is sensitive enough to bring down the <unk> volume at that point it makes the piece <unk> + i do n't know why barber never told anybody else + on <unk> stern 's recording it 's very <unk> + since leaving <unk> mr. mcduffie has made some smart moves and some controversial ones + his guest appearance on the nbc soap opera another world <unk> musical <unk> + by contrast he 's won <unk> for his <unk> of william <unk> 's violin <unk> which he recently recorded for <unk> along with leonard bernstein 's engaging <unk> for violin solo <unk> and <unk> + mr. mcduffie 's sweet tone <unk> <unk> and <unk> <unk> make him an ideal <unk> of both works + aided by the <unk> playing of the st. louis <unk> under leonard <unk> 's direction this <unk> really swings + mr. <unk> 's violin <unk> which sounds more like a mildly <unk> <unk> for solo violin with <unk> <unk> <unk> until the <unk> <unk> <unk> + but there are ample rewards in its <unk> slow sections and <unk> <unk> for <unk> <unk> and <unk> + at avery fisher hall here mr. mcduffie was heard recently with mr. <unk> and the warsaw <unk> in more conventional fare <unk> 's <unk> violin <unk> in <unk> minor + his performance was so <unk> and driven that the <unk> rarely <unk> + the <unk> <unk> played <unk> with a big <unk> sound that <unk> its size + whatever he plays mr. mcduffie finds satisfaction in the music itself something greater out there than me as he puts it during an interview at the manhattan apartment he shares with wife <unk> a literary <unk> + a normal person did not write the <unk> violin <unk> he declares + even when i hear it played badly i 'm still <unk> by the piece + if i could ever feel i 've contributed to it in some way then all the hard work has been worth it + ms. <unk> is a free-lance music writer in new york + are consumers too deep in <unk> + a lot of observers think so and if they 're right the whole economy as well as the <unk> among us could be hurt + a sudden forced <unk> by consumers who normally account for about two-thirds of economic activity would damp the economy at a time when <unk> spending is slowing and <unk> governments ca n't readily take up the slack + and another wave of bad loans would further <unk> many <unk> lending institutions + the <unk> cite some worrisome trends + during the almost <unk> economic expansion inflation-adjusted gross national product disposable personal income and personal consumption expenditures have risen N N but inflation-adjusted consumer installment credit has surged N N + and the ratio of installment debt to disposable personal income personal income after taxes has hit a high of about N N N + however these figures do n't seem to worry thomas a. durkin an economist at the federal reserve board + in a paper presented at the recent annual meeting of the national association of business economists in san francisco mr. durkin comments that installment credit always grows rapidly in cyclical advances and growth in this cycle is very typical of earlier <unk> + he adds we are now <unk> a slowdown which if history is a guide could <unk> for a while + but what about the debt burden + mr. durkin doubts that there is some magic level at which the ratio of installment debt to disposable income indicates economic problems + and more <unk> he says the debt burden measured other ways is not really in <unk> waters + the chart below shows why see accompanying illustration wsj oct. N N + the ratio of consumer installment credit to disposable income though up a bit has n't climbed <unk> and such debt as a percent of household assets is little changed + moreover the burden of consumer credit payments relative to disposable income may be lower in this cycle than earlier mr. durkin says + he notes that some revolving credit-card credit is actually convenience credit being used simply as a handy way of paying bills rather than a handy way of borrowing + in addition he says longer maturities on automobile and other forms of installment credit boost the stock of debt faster than the flow of <unk> and the accompanying payment burden + and if you consider the changing distribution of credit mr. durkin says much of the increase in debt in recent years is due to increasing credit use by <unk> families that is those probably best able to handle it + citing figures on home-equity loans he notes that N N of homeowners had home-equity credit accounts but the proportion rises to N N of homeowners in the $ <unk> income range and N N of homeowners with income above $ N + and much home-equity credit is used <unk> + the most frequent use is home improvement which presumably improves the value of the property mr. durkin says + so it is n't surprising that <unk> <unk> at banks remain as the chart shows <unk> below some earlier highs see accompanying illustration wsj oct. N N + a severe recession could of course raise <unk> rates but so far the current levels of consumer debt do n't seem to <unk> as a major threat + in fact the current weakness in auto buying and department-store sales and the gradual <unk> in the household saving rate suggest that consumers conservative as ever are already <unk> their <unk> a bit more tightly + in july consumer installment credit outstanding fell for the first time since january N + consumers appear unwilling to add to their leverage to support their spending bruce steinberg a merrill lynch economist says + as a result household debt appears to be stabilizing at around N N of gnp + consumers credit cards in hand are n't running <unk> through the shopping <unk> or putting the economy at any great risk + maidenform inc. <unk> to be intimate with its customers but not with the rest of the public + the <unk> maker of <unk> <unk> and <unk> enjoys one of the best-known brand images but its financial profile is closely <unk> by members of the founding family + there are very few companies that can <unk> of such a <unk> group says robert a. brawer N years old recently named president succeeding beatrice coleman his <unk> who remains chairman + we are a <unk> breed he <unk> + mrs. coleman N who declined to be interviewed is the maidenform strategist + sales have tripled during her <unk> tenure to about $ N million in N + maidenform says it is very profitable but declines to provide <unk> + the company sells image + its current ad campaign on which maidenform has spent more than $ N million since fall N does n't even show its underwear products but rather men like christopher <unk> star of the <unk> movies talking about their <unk> <unk> + the maidenform name is part of american pop culture says joan <unk> account supervisor of the campaign by levine <unk> <unk> & <unk> a new york ad firm + maidenform generated such <unk> campaigns as i <unk> i in my maidenform <unk> and the maidenform woman + you never know where she 'll turn up + <unk> on the brand is key says mr. brawer whose immediate plans include further international expansion and getting better control of distribution outside the u.s. + the intimate apparel industry is perceived to be a growth industry and clearly maidenform is a force to be <unk> with says david s. <unk> a special situations analyst at american securities corp. in new york + although working women are forced to wear the uniform of the day to retain their <unk> they are buying better quality more upscale intimate apparel he said + although mr. brawer 's appointment as president was long expected the move on sept. N <unk> the resignation of alan lesk as senior vice president of sales and merchandising + three days later mr. lesk was named president and chief executive officer of <unk> co. a competing intimate apparel division of <unk> inc + <unk> also owns <unk> another major intimate apparel maker + mr. lesk could n't be reached to comment + but maidenform officials say that after spending N years at maidenform mr. lesk N made it clear he wanted the top job + if you want the presidency of the company this is n't the firm to work for says james <unk> N who was named senior vice president of sales assuming some of the responsibilities of mr. lesk + the company <unk> the loss of mr. lesk and split his merchandising responsibilities among a committee of four people + my style is less informal mr. brawer says + top officers insist maidenform 's greatest strength is its family ownership + you ca n't go anywhere in this company and find an <unk> chart one <unk> + it is fun competing as a private company mr. brawer says + you can think long range + other major players in intimate apparel apparently feel the same way + <unk> was taken private by spectrum group in N for about $ N million + and last year <unk> holdings inc. went private for about $ N million + it was then split into <unk> apparel inc. the intimate apparel division and <unk> family products corp. which makes <unk> <unk> items and other products + publicly traded <unk> corp. which owns <unk> fair and <unk> lee corp. which owns <unk> co. are also strong forces in intimate apparel + buy-out offers for maidenform are n't <unk> says executive vice president david c. <unk> but they are n't taken very seriously + when he gets calls i do n't even have to <unk> with mrs. coleman mr. <unk> says + the company could command a good price in the market + over the past three and a half years apparel companies many of whom have strong brand names have been bought at about N N of sales says <unk> <unk> prudential-bache securities inc. apparel analyst + mr. brawer along with mrs. coleman and her daughter elizabeth an attorney who is vice chairman are the family members involved in the operations of maidenform which employs about N + mr. brawer 's wife <unk> and robert <unk> elizabeth 's husband round out the <unk> board + each has an equal vote at the monthly meetings + we are all very <unk> mr. brawer says + executives say mrs. coleman is very involved in the day-to-day operations especially product development + in the late 1960s she designed a <unk> stretch <unk> that boosted sales + her father william rosenthal designed the <unk> making company 's first <unk> in the 1920s which he said gave women a <unk> form compared with the <unk> form they got from the flat <unk> used for support at the time + while mr. rosenthal introduced new <unk> designs his wife <unk> concentrated on sales and other financial matters + the name maidenform was <unk> by a third business partner <unk> <unk> + the company has N plants and distribution facilities in the u.s. puerto rico other parts of the caribbean and ireland + maidenform products are mainly sold at department stores but the company has quietly opened a retail store of its own in omaha neb. and has N factory outlets with plans to add more + before joining maidenform in N mr. brawer who holds a <unk> degree in english from the university of chicago taught at the university of wisconsin + as a senior vice president he has headed the company 's designer <unk> division <unk> de la <unk> since its inception in N + to maintain exclusivity of that designer line it is n't labeled with the maidenform name + while the company has always been <unk> mr. brawer is n't the first person to <unk> into the family and subsequently head maidenform + mrs. coleman 's husband joseph a physician succeeded mrs. rosenthal as president and served in that post until his death in N + china could <unk> its foreign-exchange reserves as early as next year a western government report says unless imports are cut drastically to help narrow the <unk> deficit + according to the report completed last month if china 's trade gap continues to widen at the pace seen in the first seven months of this year the reserves would be wiped out either in N or N + a country is considered financially healthy if its reserves cover three months of its imports + the $ N billion of reserves china had in june would cover just that much + the report by the western government which declines to be identified concludes that a near-term foreign-exchange payment problem can be avoided only if import growth drops to below N N per <unk> + according to chinese customs figures import growth has slowed in recent months dropping to N N in july and N N in august from the year-earlier periods compared with an average growth rate of N N in the first half + but before import growth slowed china 's buying spree in the first half already had taken its toll on foreign-exchange reserves + the $ N billion level in june marked a drop from $ N billion at the end of april + china 's last big import binge sent reserves tumbling to $ N billion in june N from $ N billion the previous september + china might <unk> off a crisis if it acts as <unk> as it did to arrest the N decline when beijing <unk> the <unk> on foreign-exchange spending and <unk> the currency + but this time china faces a more difficult battle because of economic forces that have come into play since the <unk> square killings june N + for example china 's <unk> income is expected to suffer from the big drop in tourist <unk> since june N + revenue from tourism this year is projected to total $ N billion down from $ N billion last year + because of this and the huge trade gap the deficit in china 's current account which measures trade in goods and services plus certain <unk> transfers of funds is expected to widen sharply from the $ N billion deficit last year + the western government report suggests a number of scenarios for china 's <unk> balance two of which are considered most likely + in one imports and exports continue to grow at the respective average rates of N N and N N recorded during the first seven months and the <unk> deficit widens to $ N billion + in N china had a record deficit of $ N billion + the other scenario assumes that beijing takes effective actions to curb imports in the coming months + in this case china would still finish the year with a <unk> deficit of $ N billion based on projections that imports for all of this year grow N N and exports N N + if china were still on good terms with foreign lenders it might be able to stem the drain on its foreign-exchange reserves by using some loan funds to offset the <unk> deficit + but since june foreign bankers led by international financial institutions have virtually suspended their new loans to china + even if borrowing <unk> commercial bankers are n't expected to lend as much as before + in addition economists are forecasting a slowdown in foreign direct investments as businessmen become increasingly wary of china 's deteriorating political and economic environment + on top of all this <unk> <unk> are expected to peak in N to N + with less capital coming in china 's balance of payments would suffer + the western government report 's first scenario assumes a N N reduction in foreign borrowing and a N N <unk> in foreign direct investment + in the second foreign borrowing is projected to grow N N and investment to drop N N + but in either case the report says china 's balance of payments would rapidly dry up foreign reserves which are used to finance the <unk> + in the first scenario the reserves would be exhausted next year and in the second they would be wiped out in N + <unk> holding ag parent of the swiss chemical and pharmaceutical group said its group sales rose N N in the first nine months of the year to N billion francs $ N billion + the company reported good gains in all of its divisions + <unk> also said it expects a considerable rise in N group profit from the N <unk> $ N million net in N + new <unk> investments inc. said it closed the acquisition of <unk> glass co. from <unk> co. a <unk> ill. maker of <unk> home products + terms were n't disclosed + <unk> a maker of glass bottles for the cosmetics and <unk> industries had sales last year of about $ N million + new <unk> investments is a closely held investment partnership with interests primarily in the packaging industry + ralph brown was N feet over minnesota when both jets on his falcon N <unk> out + at N feet he says he and his <unk> were looking for an interstate or a <unk> to land + at N feet the engines <unk> + but knowing that <unk> would probably ground him for repairs mr. brown <unk> his stop in nearby chicago and set course to get his load a few hundred <unk> to the memphis <unk> hub on time + had he been a little less <unk> i 'd have gotten the thing on the ground and headed for the <unk> bar mr. brown says + but he flies for federal express corp. perhaps the <unk> thing in corporate america to the green <unk> + federal 's employees work long hours and seem to <unk> on the stress of racing the <unk> + like mr. brown they sometimes go to surprising <unk> to meet that <unk> corporate goal delivering the goods on time + they are a <unk> to federal 's management which since the company 's founding N years ago has had its way with its work force an unusual feat in the contentious transportation industry + that may soon change + this month federal 's N pilots including some N acquired along with tiger international inc. in february will decide whether to <unk> the powerful air line pilots association as their bargaining agent + the election which would bring the first major union to federal 's u.s. operations has <unk> new <unk> against devoted veterans such as mr. brown + it has also rattled federal 's strongly <unk> management which is already <unk> with <unk> <unk> operations and with falling profits + a union sooner or later has to have an adversary and it has to have a victory frederick w. smith federal 's chairman and chief executive says with <unk> + in our formula we do n't have any losers except the competition + what managers really fear is that the <unk> movement could spread beyond the pilots + under federal transportation law a government mediator is attempting to <unk> the <unk> of tiger 's job <unk> into federal 's + depending on the outcome the merged company may face union elections this fall among <unk> <unk> <unk> workers stock <unk> and flight <unk> + these groups constitute up to N N of its work force + unions would have a <unk> effect on the whole culture of the company says bernard la <unk> a professor at ohio state university at columbus and a federal consultant + that culture carefully <unk> by mr. smith leaves little if any room for unions + since founding the company the <unk> vietnam <unk> who is still only N years old has <unk> an <unk> of combat + flights are <unk> + mr. smith 's managers have at times been called <unk> <unk> <unk> 's guerrillas + the <unk> <unk> award the navy <unk> for a job well done is <unk> on federal 's workers who <unk> the call of duty + competitors are known as the enemy + to reinforce employees ' <unk> mr. smith pays well + he also lets workers <unk> steam through an elaborate <unk> procedure and as a <unk> fly free in empty <unk> seats + he gives <unk> talks in periodic family <unk> <unk> internationally on <unk> the company 's own television network + and with many of his N workers mr. smith 's <unk> attitude has caught on + james cleveland a <unk> who earned a <unk> <unk> for figuring out how to get a major customer 's <unk> load to its <unk> by N a.m. considers himself far more than a <unk> + we do n't just hand the customer the package + that 's just the beginning he says + in <unk> we run the show + david <unk> a longtime pilot <unk> at the mere suggestion that a union might <unk> with his flight schedule + this is america he says + nobody has the right to tell me how much i can work + such attitudes have given federal flexibility not only to rapidly implement new technology but to keep its work force extraordinarily lean + the company deliberately <unk> stretching employees ' schedules to the limit + but though <unk> work as many as N hours a week during the autumn rush they leave early during slack times while still being assured of a minimum <unk> + pilots as well routinely fly overtime to ensure that none are <unk> during seasonal lows + the operational freedom has also given federal a leg up on archrival united parcel service inc. the nation 's largest employer of united <unk> of <unk> members + ups wo n't discuss its labor practices but according to mr. cleveland a former ups employee and others union work rules prohibit ups drivers from doing more than carrying packages between customers and their vans + because ups drivers are n't permitted to load their own vehicles at the <unk> say these <unk> packages often get buried in the load and are delivered late + labor problems are the last thing mr. smith needs right now + although the tiger acquisition has brought federal a long way toward becoming the global player it wants to be it also has brought problems + it more than doubled federal 's long-term debt to $ N billion thrust the company into unknown territory heavy cargo and suddenly expanded its landing rights to N countries from four + federal on its own had n't been doing very well overseas + it had <unk> in its attempt to get into asia where treaty restrictions forced it to fly some planes <unk> on certain routes + on routes to south america the company had no backup jets to ensure delivery when planes were <unk> + in europe business suffered as federal bought several local companies only to have the managers quit + these and other problems squeezed federal 's profit margins last year to N N down from more than N N annually in the first half of the decade + earnings have plummeted too in each of the past three quarters + in the fiscal first period ended aug. N profit fell N N to $ N million or N cents a share mostly because of the tiger merger federal says + federal 's stock price however has held up well driven in part by the general <unk> of airline stocks analysts say + since trading as low as $ N a share in may federal 's shares have rallied as high as $ N in new york stock exchange composite trading + they closed friday at $ N down N cents on the day + there 's a certain irony in the fact that federal express faces its first union problems as a result of its tiger purchase + tiger itself was founded by a band of <unk> <unk> who had <unk> supplies over the <unk> from india to china during world war ii + in the early 1970s mr. smith <unk> his fledgling company on tiger 's innovation of <unk> and <unk> operations + but from early on tiger 's workers <unk> while federal 's never have + federal express officials acknowledge mistakes in their drive overseas but say it will pay off eventually + analysts expect federal 's earnings to improve again in its fiscal third quarter ending feb. N when the company should begin benefiting from tiger 's extra flights <unk> planes and landing rights + until then they expect the cost of <unk> the two carriers to continue <unk> profits + for now the union issue is the most <unk> of federal 's tiger problems management believes + although encouraging dialogue between managers and workers mr. smith does n't <unk> what he considers <unk> + when a large group of pilots once signed <unk> opposing <unk> and compensation changes he called a meeting in a company <unk> and dressed them down for challenging his authority + he then made most of the changes pilots say + that sort of approach however has n't worked since the addition of tiger + its N workers who had battled tiger 's management for years over <unk> were union members until the day of the merger when most of their unions were automatically <unk> + soon after the merger moreover federal 's management asked tiger 's pilots to sign an agreement <unk> that they could be fired any time without cause or notice + when the pilots refused the company <unk> it + mr. smith angered federal 's pilots too + in his <unk> to seal the deal with tiger chairman saul steinberg last august mr. smith ignored a promise that he had made to his own pilots three years ago that any <unk> acquired in future mergers would be <unk> put at the bottom of the pilot seniority list that <unk> work schedules pay and career options + the tiger merger agreement <unk> that the lists be combined on the basis of tenure + mr. smith is trying hard to <unk> the anger + and even some <unk> pilots say his <unk> and popularity among the many former military <unk> could be tough to beat + a lot of people are identifying a vote for representation as a vote against fred smith says <unk> <unk> a <unk> pilot and union activist + mr. smith and other top federal executives have met with tiger workers in los angeles ohio new york alaska asia and europe + recently they have appeared every few weeks in <unk> type <unk> <unk> <unk> arguments + in one video mr. smith defended his agreement to merge the <unk> lists + he said mr. steinberg had insisted that the merger talks move quickly + regulators as well might have <unk> the deal if tiger 's pilots had n't been protected he said + furthermore mr. smith added our contract with our pilots says that we will manage our fleet operations with their advice + it does n't give any particular group the ability to veto change + already the fight has been costly + the <unk> controversy along with the <unk> dispute has been turned over to the mediator + meanwhile the company is operating with two separate pilot groups and seniority lists and that is costing federal a big number says james <unk> executive vice president and chief operating officer + the issue has also cost federal management a lot of good will among its old pilots + they were willing to <unk> us because we had n't shown any <unk> any resistance says william <unk> a <unk> pilot and <unk> federal veteran + adds john <unk> a N <unk> and past chairman of the <unk> flight advisory board they 've made all these <unk> gestures to the flying tiger pilots and for us nothing + such <unk> could prove <unk> in the union vote + a large majority of the N former tiger <unk> support the union according to a union study + but though most of the N federal pilots are believed opposed it is unclear just how much their loyalty to mr. smith has been eroded + the fight has turned <unk> and among pilots at least has shattered the <unk> de corps that mr. smith worked so hard to build + <unk> pilots have held <unk> parties + some younger pilots say they have had to endure <unk> <unk> by senior pilots while flying across the country + and for now at least the competition is n't the only enemy + barney <unk> a N <unk> and leader of the <unk> forces said he has received two <unk> death threats and been challenged to a fight with tire <unk> by a <unk> + the pilots are either for us or extremely against us he says with a sigh + <unk> corp. said it obtained a $ N million export order for <unk> recovery vehicles and related support equipment + <unk> declined to say what country placed the order + the company said it received an order for N of the vehicles which retrieve tanks and other <unk> vehicles when they break down or are damaged and an option for N more + delivery is to begin in early N + <unk> produces products for defense industrial commercial and construction markets + the senate convicted u.s. district judge <unk> hastings of florida of eight impeachment articles removing the <unk> judge from his $ <unk> lifetime job + mr. hastings 's case was particularly <unk> because it marked the first time a federal official was <unk> and removed from office on charges of which a jury had acquitted him + in N mr. hastings was found not guilty of accepting a $ N bribe in a case before him the central charge on which the senate convicted him + he was only the sixth federal judge ever ousted from office after an impeachment trial + with no floor debate the senate on friday voted N to <unk> mr. hastings of perjury and conspiring to accept a bribe five votes more than needed + conviction on any single impeachment article was enough to remove judge hastings from office + he was found not guilty of three charges involving accusations that he had improperly disclosed information about a sensitive government investigation + the senate did n't vote on six lesser charges + although mr. hastings had been acquitted by a jury lawmakers handling the prosecution in congress had argued that the purpose of impeachment is n't to punish an individual + instead they argued that impeachment aims to protect public institutions from people who have abused their positions of trust <unk> of the outcome of prior criminal or civil cases + mr. hastings faced the senators and sat <unk> during the first two <unk> votes then quickly left the chamber + in an <unk> news conference on the capitol steps he denounced the senators ' action + their opinion is <unk> of the wisdom of the <unk> ' teaching regarding impeachment mr. hastings said + for the future he said he would run for governor of florida + mr. hastings was appointed to the federal bench by president carter in N and was one of the few black federal judges in the country + while he packed the senate gallery with his supporters during some of the impeachment trial most civil rights groups kept their distance from his case + following the impeachment conviction dr. benjamin <unk> executive director of the national association for the <unk> of <unk> people issued a <unk> statement warning that the hastings case could set a dangerous precedent but adding we must respect the considered judgment of the senate + when last we left him fbi agent <unk> mancuso had solved a murder mystery unraveled a washington political scandal and racked up some pretty good ratings numbers in the <unk> favorite son + what next for the <unk> fbi agent with the heart of gold + a spinoff series of course + there are plenty of worse <unk> for shows and most of them had already made the fall lineup + a <unk> raising some <unk> <unk> + a <unk> mother raising some <unk> <unk> models + a bunch of <unk> and <unk> suits <unk> as <unk> <unk> + in that context robert <unk> 's <unk> performance as the <unk> even <unk> veteran agent seems a better franchise for a series than most + week by week on mancuso fbi nbc <unk> N p.m <unk> he <unk> around the crime styles of the rich famous and powerful of the washington scene a loose <unk> on deck at the fbi + over the first few weeks mancuso fbi has <unk> straight from the <unk> which is either a <unk> <unk> at <unk> or a lack of <unk> or both + the opening show featured a secretary of defense <unk> accused of <unk> a la john tower + when his secretary is found floating dead in the <unk> 's pool mancuso is called in to investigate + last week a young black girl claimed she had been <unk> by a white police officer a la <unk> <unk> + in this week 's show there 's an <unk> nuclear <unk> facility a la rocky <unk> + along the way we 're introduced to the supporting cast a <unk> <unk> secretary <unk> <unk> her real name honest a <unk> young boss <unk> <unk> another <unk> <unk> who 's also an <unk> lawyer <unk> <unk> and a <unk> expert charles <unk> + if all of this seems a little <unk> it 's redeemed in part by some tricky plot <unk> + the usual suspects are found to be guilty then not guilty then guilty but of a different crime + in last week 's rape case for example the girl turns out to have been a victim of incest and the biggest <unk> are the politicians who exploit the case + most of all though the show is redeemed by the character of mancuso + what makes the veteran fbi man so <unk> is his <unk> <unk> earned we discover when he was assigned to the civil rights movement back in the 1960s + he was n't protecting the freedom <unk> he was <unk> them as <unk> + this is not the mississippi burning scenario that <unk> his young colleagues kid you 've been reading classic <unk> too long mancuso says + back in N the fbi had five black agents + three were <unk> for j. edgar <unk> and two <unk> his house + at the core of mr. <unk> 's mancuso is his <unk> <unk> + he describes a reporter as miss first amendment + he describes a <unk> <unk> as <unk> williams + and when he 's told try a little <unk> he <unk> back i 'm going home to try a little <unk> + yet for all his <unk> he 's at heart a <unk> <unk> a <unk> with a secret crush on truth justice and the american way + he 's the kind of guy who <unk> <unk> flags + if mancuso fbi has an intriguing central character it also has a major flaw + it 's wildly <unk> + executive producers steve sohmer and jeff <unk> and <unk> ken <unk> and steve <unk> have <unk> this show up to the breaking point + to start there 's always a crisis and someone always worries what if the press gets a hold of this + at least once an episode we see <unk> <unk> around <unk> <unk> + at least once mancuso 's boss <unk> in here now and proceeds to dress his investigator down + you are a <unk> a <unk> in a $ N suit + one more word and you are out on a park bench <unk> + finally of course the boss gives in but he 's still <unk> i find myself explaining anything to teddy kennedy you 'll be chasing stolen cars in <unk> + in fact throughout mancuso fbi we do n't get words or lines we get <unk> + witnesses <unk> <unk> <unk> a dream that the planet could be saved from itself and from the <unk> <unk> creatures who try to <unk> down every decent man who raises his voice + and mancuso himself is investigating at the top of his <unk> how the hell can you live with yourself he <unk> at a politician + you twist people 's trust + you built your career on <unk> and hate + the <unk> will be here years after the polls close + in each show mancuso gets to <unk> similar <unk> + where the hell are they <unk> <unk> live when people like you turn the world into a big toxic waste dump + you 're the real criminal here and what you did was n't just a murder it was a crime against <unk> + and at least once a show someone <unk> the line get off that <unk> + now that 's advice the writers should take to heart + they have a series with a good character some interesting even occasionally surprising plot lines and they 're <unk> it + why when a key witness disappears does mancuso trash her apartment <unk> down <unk> <unk> walls + it 's a bizarre and totally inappropriate reaction all to add more <unk> to a script that 's already <unk> on <unk> + that 's not plot + that 's not character + that 's <unk> + there is a scene at the end of the first week 's show where mancuso <unk> the <unk> of the <unk> to his dead partner david + asked to say a few words he pulls out his <unk> piece of paper and tries to talk but he 's too <unk> up to get the words out + he <unk> on the piece of paper in frustration then turns and walks away + it was a <unk> moving moment for series television and robert <unk> 's acting <unk> in the <unk> + there 's a pretty good program inside all the noise of mancuso fbi + if the show 's <unk> could just let themselves be quiet for a little they might just hear it + with a twist of the <unk> boys with tops and <unk> <unk> and <unk> types with <unk> in their <unk> have a goal in common all of them try to put the right spin on it + george o. <unk> + net gain + investment letters now <unk> i really like to read them if i <unk> enough i 've found i 've no time left to <unk> them + <unk> <unk> + daffynition + tv <unk> <unk> + <unk> <unk> may + texaco inc. has purchased an <unk> company in texas for $ N million its first major acquisition since its legal <unk> with pennzoil co. began more than four years ago + the white plains n.y. oil company said friday that it had acquired <unk> production corp. a subsidiary of <unk> energy holdings inc. for $ N million in cash with the rest to be paid in shares of a new <unk> issue of preferred stock + <unk> which holds properties in N oil and gas fields in south texas will provide texaco with mostly gas reserves + the fields contain <unk> reserves of N billion cubic feet of natural gas and four million barrels of oil + this acquisition is another indication of texaco 's commitment to increase the company 's reserve base said chief executive officer james w. <unk> + texaco has also been attempting to sell oil properties + at least two years ago the company put N million barrels of oil reserves on the block + they were either too small or <unk> to maintain the company said + not all of those <unk> have yet been sold + texaco acquired <unk> before it completed those sales because <unk> 's properties are high quality and near other fields texaco already owns a company spokeswoman said + texaco like many other oil companies has been struggling to replace its falling oil and gas reserves + texaco 's situation had become particularly complex because much of its effort had for years been focused on its <unk> with pennzoil and then on new york investor carl c. icahn 's attempt to take over the company + pennzoil had sued texaco for improperly <unk> with its acquisition of a portion of <unk> oil co + eventually texaco which was forced into bankruptcy proceedings by that litigation settled its fight with pennzoil for $ N billion in N + mr. icahn who played a key role in the settlement and attempted subsequently to take control of the company sold his stake in texaco just last summer + completion of texaco 's acquisition of <unk> is subject to government approval under the hart-scott-rodino antitrust improvements act + <unk> inc. said it reduced the estimated cash distribution for its capital housing and mortgage partners inc. trust to between N cents and N cents a share from between N cents and N cents for the year ending june N N + the change in expected cash distributions from the <unk> real estate investment trust stems from a revised estimate of administrative costs said jay r. cohen <unk> executive vice president + <unk> which sponsors <unk> is a world-wide real estate investment firm + h&r block inc. had net income of $ N million or $ N a share in the fiscal year ended april N + the figure was incorrectly shown as a net loss in a chart accompanying friday 's heard on the street column + your oct. N article on daniel <unk> cited the quote a good name is better than great <unk> as being from <unk> ' don <unk> + actually <unk> borrowed that quote from a writer of some N centuries earlier israel 's king <unk> wrote those words in the book of <unk> N + michael e. hill + japan had an <unk> trade surplus of $ N billion for the first N days of october down from $ N billion a year earlier the finance ministry said + the latest drop shows the narrowing in the nation 's trade gap reflected in <unk> full monthly reports is continuing + the report follows <unk> declines in full monthly figures + imports rose sharply in the period to $ N billion from $ N billion a year earlier a change of N N + exports during the period were $ N billion N N below $ N billion a year ago + <unk> ag 's chairman said the belgian insurer is prepared to give up some of its independence to a white knight if necessary to <unk> a raider + amid heavy buying of shares in belgium 's largest insurer maurice <unk> also warned in an interview that a white knight in buying out a raider could leave speculators with big losses on their ag stock + since the beginning of the year the stock has nearly doubled giving ag a market value of about N billion belgian francs $ N billion + the most likely white knight would be societe generale de <unk> s.a. which already owns N N of ag and which itself is controlled by cie financiere de suez the <unk> french financial conglomerate + but mr. <unk> said a rescue also could involve <unk> mutual life insurance co. which owns N N of ag + ag is hardly alone in its anxiety + a <unk> <unk> is quickly <unk> europe 's <unk> insurance business + worried by european community <unk> that will remove many of the barriers to cross-border insurance services starting in <unk> insurers are rushing to find partners and preparing for price wars + in west germany and the netherlands insurers are <unk> with banks + in france suez and <unk> assurances s.a. both have been on the <unk> for giant acquisitions suez last month acquired control of <unk> <unk> the <unk> european insurance company after a takeover battle with cie <unk> + mr. <unk> said the volume of shares changing hands has grown significantly since <unk> + but he estimated that a raider would have been able to <unk> no more than N N of the shares in recent months + aside from exploring plans for joint ventures or acquisitions mr. <unk> has called top managers of companies rumored as potential raiders among them <unk> union des assurances de paris and suez all based in france + they have all very clearly stated that they have not acquired and are not acquiring shares of ag he said + any raider would find it hard to crack ag 's <unk> + a syndicate of shareholders holds just under N N of ag mr. <unk> said and members have agreed to give one another the right of first refusal should they sell any ag shares + aside from generale de <unk> and <unk> the syndicate includes <unk> <unk> a belgian savings bank and various family interests + a generale spokesman confirmed that the giant belgian holding company would be willing to raise its stake in ag should a raider seek control + <unk> officials could n't be reached for comment + even without bid talk this year 's surge in prices for brussels real estate has excited interest in ag + the company says those holdings constitute the <unk> real-estate portfolio in belgium + with the dust settling from the failed coup attempt in panama one of the many <unk> questions the bush administration will <unk> is this is the national security council staff big enough and does it have enough clout to do its job of <unk> foreign policy + president bush 's national security adviser <unk> gen. <unk> scowcroft came into office in january intent on making the nsc staff <unk> and more disciplined than it had been during the reagan administration + gen. scowcroft was a member of the tower commission which investigated the iran-contra affair + he was all too aware of how a large <unk> <unk> nsc staff had spun out of control and nearly <unk> president reagan 's second term + so following both the style he pursued as president ford 's national security adviser and the recommendations of the tower commission gen. scowcroft has <unk> the nsc staff and tried to ensure that it <unk> to its assigned tasks namely gathering the views of the state department pentagon and intelligence community serving as an honest broker in <unk> that information for the president and then making sure presidential decisions are carried out + the tower commission specifically said that the nsc staff should be small and warned against letting energetic <unk> like <unk> col. oliver north strike out on their own rather than leaving the day-to-day execution of policies to the state department pentagon or central intelligence agency + however the panama episode has raised questions about whether the nsc staff is sufficiently big diverse and powerful to coordinate u.s. policy on tough issues + during the coup attempt and its aftermath nsc staffers were stretched very thin says one senior administration official + it 's a very small shop + gen. scowcroft does n't plan to increase the staff right now but is weighing that possibility the official adds + the nsc staff does n't have the <unk> that i believe is required to have an effective <unk> process says frank <unk> a former pentagon aide who now runs the center for security policy a conservative washington <unk> + the problem with this administration i think is that by design it has greatly diminished both in a physical sense and in a procedural sense the role of the nsc + the national security council itself was established in N because policy makers <unk> a need in an increasingly complex world for a formal system within the white house to make sure that communications <unk> smoothly between the president and the state department pentagon and intelligence agencies + by law the council includes the president vice president and secretaries of state and defense + in practice the director of central intelligence and chairman of the joint chiefs of staff also serve as <unk> members + but the size shape and role of the nsc staff have been left for each president and his national security adviser to decide + that task is one of washington 's <unk> problems + in the bush white house the size of the nsc 's staff of professional officers is down to about N from about N in N administration officials say + administration officials insist that the size of the staff was n't a problem during the panama crisis + but one clear problem during the coup attempt was that the nsc <unk> most experienced in latin america <unk> briggs was gone + he had just resigned at least in part because of a <unk> with assistant secretary of state bernard <unk> over the administration 's policy on panama and support for nicaragua 's contra rebels + the absence of mr. briggs underscored the possible <unk> of the current nsc staff + both gen. scowcroft and his deputy robert gates are experts in u.s.-soviet affairs + gen. scowcroft is particularly <unk> in arms control and mr. gates has spent years studying soviet politics and society + both have become <unk> of president bush + but neither has an extensive background in latin america the middle east or asia + in those areas the role of nsc staffers under them therefore have become more important + gen. scowcroft knows as well as anyone that one of the biggest dangers he faces is that nsc staffers working in relative <unk> will take over <unk> and operational tasks that are best left to bigger and more experienced state department and pentagon bureaus + but just as every previous nsc adviser has gen. scowcroft now will have to <unk> at what point the nsc staff becomes too lean and too <unk> + japan 's wholesale prices in the first N days of october fell N N from the previous N days but rose N N from a year ago the bank of japan said + the wholesale price index stood at N N <unk> N + a former sperry corp. marketing executive admitting his role in the pentagon procurement scandal pleaded guilty to bribery and conspiracy charges for helping <unk> $ N to a <unk> navy acquisition official during the early 1980s + frank lavelle who at the time was the marketing director for sperry in <unk> fla. admitted participating in a scheme to bribe <unk> <unk> the navy official + mr. <unk> who left the navy in N pleaded guilty earlier this year to related conspiracy bribery and <unk> charges + the bribery scheme took place between N and N according to documents filed by prosecutors in connection with mr. lavelle 's guilty plea in federal district court in <unk> va + sperry merged with <unk> corp. to become unisys corp. in late N + court documents filed by prosecutors indicate mr. <unk> tried to steer to sperry a <unk> dollar contract to <unk> maintenance of certain navy electronics <unk> + mr. <unk> among other things illegally provided mr. lavelle with inside information and documents intended to give sperry an unfair advantage in the competition the documents said + sperry ultimately was eliminated from the competition without receiving the work + documents filed by prosecutors also indicate that mr. lavelle and his fellow <unk> requested and obtained approval of the scheme from <unk> sperry officials because the payment which <unk> <unk> requested was so large + charles <unk> a former unisys vice president and james neal a former company consultant have admitted participating in this and other bribery schemes + unisys has said that all of the company officials who participated in improper activities have left the company + mr. lavelle faces a maximum of N years in jail and a $ N fine + the new york stock exchange said a seat was sold for $ N unchanged from the sale thursday + seats are quoted at $ N bid and $ N asked + bureaucrats may deserve their bad reputation after all + <unk> lesko something of a professional <unk> of government thought he had a <unk> winner last summer when he offered $ N for the best <unk> story of N words or less about how a government bureaucrat helped you + he sent out thousands of news releases from his <unk> md. office + he <unk> the contest on larry king 's radio show on pat <unk> 's television show and on the <unk> cable television network + he talked about it in every speech he made as he <unk> the country promoting his books which <unk> handy <unk> advice on using government information for fun and profit + mr. lesko figured he would be flooded with <unk> by now + after all he says we 've got like N million bureaucrats + and in addition to the $ N he has promised the winner a my favorite bureaucrat <unk> and offered each of two <unk> $ N + so far though mr. lesko has received only one entry + to make matters worse the lone nomination came from another bureaucrat a woman from the new york state department of taxation and finance who <unk> her boss + mr. lesko who is making the rules as he goes has determined that bureaucrats are eligible for nomination by other bureaucrats + but he says he would prefer to get <unk> from <unk> folks + he admits that he has n't had much luck generating free publicity for his contest + newspapers including this one have generally ignored his news releases + talk show hosts quickly change the topic + but mr. lesko 's staff is beginning to wonder whether there is n't some larger phenomenon <unk> the contest + is the government not helping anybody asks <unk> murray an assistant to mr. lesko + mr. lesko himself is n't yet prepared to accept that explanation + people hate to write he says + maybe people do n't believe i want to give this money away + maybe americans are just so <unk> with government that they are n't interested in admitting that bureaucrats come in handy once in a while + if he sponsored a contest on how a bureaucrat <unk> something mr. lesko admits i 'd get N <unk> + now there 's an idea + ford motor co. and saab-scania ab of sweden broke off talks about a possible alliance after ford officials concluded that the cost to modernize saab 's car operations would outweigh the likely return + with the collapse of the talks friday european analysts expect ford to intensify its pursuit of british luxury car maker jaguar plc which is scrambling to fend off a hostile ford bid by negotiating a friendly alliance with ford 's archrival general motors corp + saab meanwhile is left to continue its search for an ally to shore up its sagging car business + saab said last week it has had and will continue to have contacts with other manufacturers + among the possible suitors is italy 's fiat s.p a analysts said last week + ford and saab officials declined to elaborate publicly on the announcement friday that their negotiations failed to yield an agreement that could make long-term business sense to both parties + individuals close to the ford side of the negotiations said late last week that the no. N u.s. auto maker lost interest as it became clear that the swedish auto maker 's automotive operations had little to offer in the way of image or technology + ford originally had seen a saab alliance as a way to expand its presence in the european and u.s. luxury car markets + in addition ford and saab had discussed a possible link between their heavy truck operations + but the talks on a heavy truck alliance apparently did n't go far + some european analysts speculated that officials of saab 's highly profitable <unk> truck operation balked at <unk> any of their <unk> + meanwhile ford officials became convinced they could n't expect to recover the investment it would require to make saab 's cars competitive in the increasingly crowded luxury market + saab 's problems were underscored friday when the company announced that its car division had a N billion kronor $ N million loss during the first eight months of this year slightly worse than saab-scania had forecast in its first-half report last month + overall saab-scania 's pretax profit during the first eight months of the year plunged N N to N billion swedish kronor $ N million from N billion kronor $ N million a year earlier + industry analysts in europe said the most likely suitor for saab now is fiat + saab and fiat have worked together in the past in one case developing jointly a new auto <unk> that became the foundation of saab 's N model fiat 's <unk> and <unk> 's <unk> + last month saab-scania chief executive <unk> <unk> said his company has had talks with fiat about a broader alliance + but the talks yielded nothing so advanced that we needed to make a public announcement about it he said + as for ford analysts expect the end of the saab play will allow the u.s. auto maker to focus its resources on the <unk> struggle with gm for a stake in jaguar + the failure of the saab talks makes it even more crucial for ford to be <unk> in the jaguar contest said stephen reitman european auto industry analyst at <unk> & drew in london + ford faces an <unk> fight for jaguar however + jaguar executives said last week they expect to have a friendly alliance with gm <unk> up by the end of the month + gm meanwhile is <unk> a delegation of members of the british parliament who are <unk> the auto maker 's <unk> operations in detroit + a gm spokesman said the visit is n't connected to the jaguar situation + but ford clearly views jaguar as a prize worth fighting for since the company 's <unk> brand image would give ford a badly needed leg up in the high end of the luxury markets in both europe and the u.s. + last week ford encountered a setback in its effort to broaden its u.s. luxury offerings when it was forced to abandon a four-year-old effort to market its <unk> scorpio sedan in the u.s. as a luxury import under the merkur brand name + so despite the <unk> <unk> analysts say ford by last friday had boosted its jaguar holding to about N N of the luxury auto maker 's shares outstanding from N N early last week + about N million jaguar shares changed hands in active trading on london 's stock exchange friday and jaguar shares moved up N pence to N pence $ N + on the u.s. over-the-counter market jaguar 's american depositary receipts rose N cents to $ N + <unk> s. <unk> contributed to this article + the dallas cowboys are looking at a <unk> situation struggling to pull ahead of the atlanta <unk> + up in his stadium box their new and controversial owner <unk> jerry jones watches <unk> as the team <unk> up to the <unk> line + mr. jones takes heart + there in the center of the pack is <unk> <unk> <unk> the key to the cowboys ' comeback strategy + so key in fact that mr. jones signed him in april for $ N million over the next six years a record for a <unk> + he 's a genuine <unk> <unk> <unk> mr. jones + with three minutes left on the <unk> mr. <unk> takes the <unk> steps back and fires a <unk> pass straight into the hands of an atlanta defensive back + the crowd <unk> mr. jones <unk> his head the cowboys lose the game + a few days after that sept. N game mr. <unk> broke a finger <unk> him for weeks + <unk> the <unk> of professional sports + for mr. jones losing his <unk> temporarily was just the latest in a string of setbacks that has <unk> the dallas cowboys and this year much of the national football league + once fat and happy the cowboys now are losing games fans and money + last year the team ended up $ N million in the red on $ N million in revenue + it has some of the highest costs in the league + its attendance is off N N from six years ago + at the very least mr. jones who <unk> the society circuit as <unk> as his bench can take comfort in one fact these days he is n't alone + nearly half the owners of the N national football league teams are losing money the result of flat attendance aging stadiums and more than anything <unk> salaries for star players like mr. <unk> + last year the top N players on each nfl team took home an average $ N a figure comparable to baseball and higher than in basketball + <unk> draft picks have done even better average salaries and bonuses for them rose to $ N this year up N N from N + it 's a vicious circle says art <unk> owner of the cleveland <unk> + one team pays so much and the other pays more + we just do n't have that kind of income stream + all this is causing <unk> in professional football + owners largely <unk> in the past are now almost desperately looking for ways to lower costs and raise revenue <unk> some revolutionary ideas in the process + though not intentionally the cowboys ' mr. jones has come to represent this new breed of owner + shortly after buying N N of the team from <unk> <unk> bright for $ N million and <unk> of the cowboys ' <unk> bottom line the <unk> mr. jones set about his own round of team cuts + first he <unk> <unk> tom <unk> the legendary coach who took the cowboys to five <unk> <unk> and N consecutive winning seasons + in dallas mr. <unk> has a standing just shy of <unk> + <unk> sentiment flooded the local press a crude <unk> <unk> said one writer a real <unk> said another who in the hell does he think he is wrote a third + for mr. jones it was just the beginning + he quickly cut the team 's bloated administrative staff by half shut down a <unk> dance academy and in july announced plans to sell valley ranch the team 's <unk> practice camp and the most <unk> training facility in the nfl + mr. jones calls the ranch the pentagon of <unk> + it is a <unk> of halls that <unk> film rooms elaborate <unk> and <unk> centers that testify to a richer more <unk> era + he likes to tell the <unk> of how he got lost on the <unk> ranch during an early visit took refuge in an office and called the front desk for help + i said somebody come get me + i 'm at extension N + with a new day <unk> on the sport mr. jones does n't see a place for this sort of luxury + it 's just not cost efficient he says + the place costs nearly $ N million a year to maintain + when he sells it he says the cowboys will move to a more practical read affordable <unk> practice field near texas stadium + and as for tom <unk> well in mr. jones 's mind he had played out his winning years + after posting losing seasons in each of the last three years the cowboys needed a change he says + football has long been mr. jones 's passion both on and off the field + an arkansas native he started at guard on the <unk> N university of arkansas team that won a national championship + after college he worked at his father 's insurance company in little rock and in N led an aborted attempt to buy the san diego <unk> + years later with cash from the sale of the insurance company he founded <unk> production corp. an oil and gas exploration company based in little rock + so it was n't surprising that mr. jones returned to his arkansas roots when he went looking for a replacement for mr. <unk> + he tapped <unk> johnson a <unk> on the N university of arkansas <unk> and the head coach at the university of miami where he led the <unk> to five winning seasons and a national championship in N + whatever mr. johnson 's <unk> in the hearts and minds of many dallas fans he is no tom <unk> + seven games and after a loss to the kansas city chiefs yesterday seven losses into the season the new cowboys are n't doing any better than the old + in fact the last time they played this badly was in N their opening season + average attendance at their games about N last year continues flat + mr. jones is attacking the problem on several fronts + he continues to <unk> the team trading <unk> running back <unk> walker to the minnesota <unk> this month for a slew of players and future draft picks + to try to draw more fans he has dropped <unk> ticket prices from $ N to $ N + but the general trend given rising costs in the league has been to raise prices and mr. jones is expected to eventually follow suit + it 's simple says <unk> hunt who owns the kansas city chiefs and last year raised ticket prices by $ N to an average $ N + if we did n't increase prices we 'd be in the red + mr. jones has also <unk> up his marketing staff to sell the N luxury suites <unk> texas stadium his deal with <unk> bright included operating rights for the stadium + the suites are <unk> have <unk> bars and <unk> <unk> and offer a clear view of the field all for a sale price of $ N to $ N million depending on their size and location + mr. jones has been taking prospective <unk> owners onto the field during practice to let them <unk> <unk> with players and promises those who actually buy one of the rooms an insider 's look at the team 's strategy before game time + the sales job seems to be paying off when he bought the team only six of the suites had been sold + today N have + gate receipts are only the cowboys ' second largest source of cash + the biggest is the nfl 's contract with national television for broadcast of the league 's games + last year the cowboys ' share of that pie came to $ N million + the team additionally earns between $ N million and $ N million for local radio and television broadcast rights + mr. jones is currently trying to jack up the price for those local rights + he is also trying to get more stations in mexico where the cowboys have a following to pick up the games + mr. jones whose <unk> voice and <unk> ways <unk> an intense businessman who works <unk> days is resigned to the hefty salaries he pays his players these days + he calls the contracts critical to winning in the nfl and has played his part in the bidding wars + besides signing mr. <unk> to a sizable contract mr. jones has agreed to pay <unk> <unk> steve <unk> $ N million over the next four years + this wage inflation is bleeding the nfl dry the owners contend + soon only large corporations will be able to afford to buy and run football teams predicts john j. <unk> jr. an investment banker with salomon brothers who handled the cowboys sale + to tackle the problem nfl owners have proposed setting a <unk> wage scale to try to rein in salaries + details of the plan which would go into effect in N are <unk> but each player would apparently be paid a base salary <unk> to his position and ability + bonuses would be paid based on playing time and performance + the nfl players association meanwhile contends that athletes are paid a wage <unk> with their ability to draw fans and that some owners are in financial trouble because of poor business management not players ' salaries + the owners are trying to boost profit in other ways too + many have launched promotions to attract new fans and are <unk> dated stadium contracts + most of the owners must pay up to N N of gross ticket sales for leases on stadiums they say are either too small or too old + in chicago for example size is the issue + we have the worst lease in the nfl contends michael b. <unk> the president of the chicago bears and a <unk> of george <unk> who founded the nfl 's predecessor organization + we 're in a <unk> area with millions of bear fans and only a small number can be <unk> + when the lease expires in N he says it 's got to be changed + this year the nfl also imposed an <unk> limit on teams going into training camp down from N in a move meant to trim payroll costs + and the league is trying to get more for its three-year national network contract which expires after this season + the current contract pays the nfl $ N billion + owners say they expect the league to demand a N N increase despite the fact that televised football games have had lackluster ratings + an nfl spokesman also says the league will probably expand its offerings to cable tv companies like espn + the changes have n't come easy + like the game of professional football the nfl organization itself is in turmoil + the new breed of team owner mr. jones included has been fighting the nfl bureaucracy for a greater say in league affairs and the battle has produced a form of <unk> gridlock + in july N nfl owners almost all of them new blocked an effort to install jim <unk> as a replacement for retiring league commissioner pete <unk> + mr. <unk> is perceived by some owners as a <unk> for the old guard + earlier this month another effort to choose a commissioner failed + the owners meet again tomorrow + for his part jerry jones says he 's in the business for the long haul and his work style seems to support that + he puts in busy <unk> weeks excluding game days and on one recent afternoon <unk> questions in the course of an hour from a tv producer his <unk> marketing manager a <unk> customer and a <unk> of arkansas reporters + to keep his schedule on track he flies two personal secretaries in from little rock to <unk> his staff in dallas + when i made this investment i made it on a lifetime basis he explains + i 'm not here to make money by <unk> the team later on + while the cowboys may not be the best investment now i do n't accept they ca n't be in the future + besides to a large extent mr. jones may already be getting what he wants out of the team even though it keeps losing + owning the cowboys has bought him <unk> to a <unk> life that drilling for oil in arkansas just did n't provide + there is the new private jet the <unk> of <unk> <unk> to the best parties and television appearances on shows such as prime time live + a few weeks ago mr. jones even <unk> elizabeth taylor in his private <unk> at texas stadium + you 're in the <unk> seat every day in this job he says + how <unk> <unk> of robert goldberg to use the form of <unk> <unk> journalism to explain his perception of days of rage in his television <unk> leisure & arts <unk> N + he <unk> <unk> <unk> for her <unk> presentation of <unk> journalism judging her project as <unk> <unk> + was not the title very clear + one example he gives she did n't ask why the palestinian children are soldiers throwing stones + really now did she have to ask + were not the pictures and <unk> which have been continuing news <unk> answers enough + mr. goldberg contends that even as propaganda the film fails because it presents only one view + of course the <unk> complain about their treatment of course the <unk> feel put upon + but his complaint that days of rage does n't contain balanced comments from <unk> about how badly the <unk> are <unk> is irrelevant + it 's like doing a <unk> on apartheid and insisting that equal time be given to how <unk> white south <unk> are + this film did <unk> how long the <unk> <unk> has existed by <unk> the conflict to the days of world war i when the british tried to guarantee both a jewish state and a palestinian state without <unk> how it was to be done + well days of rage airing with <unk> packaging and after repeated delays was a beginning + every issue is <unk> + this film attempts to show a side rarely seen in our media + now we must endure a rash of critics who apparently wish to know details of one side only + <unk> + <unk> + charlotte carpenter <unk> island wash + president bush wants the pentagon to get special treatment in coping with the across-the-board spending cuts that took effect last week + mr. bush asked congress to raise to $ N billion from $ N billion the amount of money defense secretary dick cheney may shift among the pentagon 's individual programs projects and activities allowing him to ease the pain that the gramm-rudman budget law was intended to <unk> + if the request is approved by both the house and senate mr. cheney would need only permission from the white house office of management and budget to move the money according to senate budget analysts + that would give the pentagon flexibility that no other federal agency has + it 's simply a way of making the cuts less onerous for defense than they are for domestic programs said chairman james <unk> d. <unk> of the senate budget committee who said he would oppose the request + that is n't consistent with the kind of discipline that gramm-rudman is supposed to impose he said + the president 's request did n't indicate how mr. cheney would shift the money + a pentagon official said the request was made to give the department maximum flexibility to deal with the cuts + last week budget director richard darman structured the $ N billion spending reduction half of which must come from defense to impose a little bit more discipline by applying cuts to each individual program project or activity in the budget + that would give agencies less ability to <unk> over things he told reporters + under the deficit-reduction law N N of the pentagon 's money and N N of other agencies ' money has been canceled + lawmakers are expected to try to restore the funds once a pending <unk> measure has been signed into law + rochester telephone corp. said it completed its purchase of urban telephone corp. of <unk> wis. the second-largest <unk> independent telephone company in that state + rochester telephone said the acquisition was made in an exchange of its common shares for all the shares of urban telephone but a price was n't disclosed + urban is the company 's first telephone subsidiary in wisconsin + since june rochester telephone signed letters of intent to purchase three other wisconsin firms + a bill that would permit the securities and exchange commission to monitor the financial condition of securities firms ' holding companies is facing tough opposition from some wall street firms which argue that the legislation is unnecessary + the legislation and other issues related to the stock market will be the focus of hearings this week by the house telecommunications and finance subcommittee and the senate securities subcommittee + richard breeden the new chairman of the sec has n't taken a formal position on the bill which would also require investors to disclose large trades and give the sec additional authority during market <unk> + however he recently told the senate banking committee that he believes the agency should have explicit authority to monitor debt levels at holding companies and affiliates of <unk> which are frequently used to issue bridge loans + the bridge loans are intended to provide temporary financing for acquisitions + since such loans are often <unk> through the sale of high-risk high-yield junk bonds the recent woes of the junk-bond market have renewed concerns among regulators about the risks associated with wall street firms issuing bridge loans + but some wall street executives argue that such fears are unwarranted + in a july N letter to the senate securities subcommittee first boston corp. argued that the fact that no retail brokerage firm failed during the N market crash demonstrates that current rules are adequate + first boston whose holding company cs first boston group is one of the larger issuers of bridge loans on wall street said it is also concerned that once the sec has the power to monitor holding companies it will try to regulate their activities + the proposal while <unk> i think can be <unk> misleading because the likely consequence would be to weaken rather than strengthen the control the sec has exercised for N years over the financial <unk> and viability of <unk> michael <unk> managing director of first boston said in an interview + the bill would <unk> scarce resources of the commission away from <unk> into areas which simply have no way of affecting <unk> mr. <unk> said + sources in the industry and on capitol hill say a compromise that would <unk> the industry while addressing the sec 's concerns may be possible + an aide to the senate securities subcommittee says some legislators support the concept of risk disclosure but adds nobody is <unk> to the language in the bill + edward o'brien president of the securities industry association said that the <unk> trade group opposes the bill as it is written but that it is hopeful a compromise can be reached to achieve the sec 's goals + mr. o'brien will elaborate on the <unk> 's position in testimony before the house telecommunications and finance subcommittee this week a spokesman said + this letter was inspired by david <unk> 's sept. N editorial-page article about <unk> <unk> man in the middle of drug trafficking + i 've organized a series of exchanges <unk> and other continuing projects between cuban and american artists + in any matters between us and the cubans there can be no <unk> consequently i 've become familiar not only with cuban art and artists but also with cuban bureaucrats and their counterparts in our own government + despite levels of <unk> <unk> and <unk> frustration of <unk> proportion these projects all remain in my mind valuable and well worth the effort + there is a simple reason for this the cuban people + let me immediately put limits to whatever <unk> <unk> that may intimate + those people to whom i refer are not some <unk> <unk> quantity they are artists critics taxi drivers <unk> even some employees of the ministry of culture all of whom share a deep belief in the original principles of the cuban revolution <unk> out in terms such as <unk> among all members of the society <unk> for education and creative expression universal rights to health and <unk> housing etc + in fact the generation of <unk> growing into maturity right now works with such <unk> held <unk> assumptions and such <unk> commitment to moral and ethical principles that it makes <unk> <unk> 's famous <unk> of art <unk> and revolution seem modest + it is on behalf of these people and out of my real respect for them that i am responding to mr. <unk> 's opinions of their country + the <unk> trial in july with its <unk> of deeply rooted and widespread corruption and the summary trial and execution was extremely disturbing to everyone who has ever considered himself a friend of cuba + however <unk> though those <unk> may have been they still provide no excuse for wholesale departures from truth + mr. <unk> should make <unk> among <unk> the army and the cuban people + they are not <unk> since they are motivated to act based on their own circumstances + it is <unk> to <unk> a government 's policies with the will of the people as we well know and it is even worse <unk> to merge the clearly <unk> <unk> of <unk> and the military and the state bureaucracy + mr. <unk> is also <unk> that mr. <unk> has resisted collaboration with u.s. officials even though by his own account that collaboration has been devised essentially as a mechanism for acts directly hostile to the cuban regime such as <unk> <unk> + i think it 's a little <unk> to be surprised that <unk> does n't <unk> the u.s. state department to violate the jurisdiction of the cuban government over its own territory + we badly need to follow fact rather than the rhetoric of conventional wisdom + without this basic level of attention to reality our policies on cuba will continue to be as <unk> as they have for N years + from my own point of view given the <unk> of <unk> creativity and warm spirit in which the cuban people <unk> we deny ourselves access to things we hold <unk> and which seem to run in such short supply these days + there is no rational <unk> for such behavior + <unk> weiss <unk> mass + <unk> inc. recently reported third-quarter earnings which were mistakenly shown in the quarterly earnings surprises table in last tuesday 's edition to be lower than the average of analysts ' estimates + <unk> investment research did n't adjust one analyst 's estimate for a stock split which therefore was artificially high + <unk> 's third-quarter net income of N cents a share actually was N N higher than the adjusted average of estimates + investors <unk> out of new york city bonds in <unk> last week driving prices lower and boosting yields + one bond trader estimated that more than $ N million of new york city general obligation bonds were put up for sale friday alone + while that represents a small percentage of the city 's public debt outstanding friday 's selling followed a <unk> effort to unload the bonds by a broad spectrum of institutional and individual investors + i 've never seen so many new york city <unk> 's up for sale said another trader + every broker has blocks of every size and maturity + municipal bond analysts said the sell-off was triggered by concerns about the city 's financial health rumors of a $ N million bond offering coming soon and political uncertainty + a spokesman for the city would n't confirm the size of the bond issue but did say that a general obligation offering is in the works and should be priced sometime in the next two weeks before the november mayoral election + general obligation bonds are backed by the city 's overall revenues and credit + although many investors were aware that a bond offering was being scheduled many expected a much smaller amount of bonds to be sold + the fact that the city will issue such a large amount of debt was interpreted as a sign that new york 's budgetary problems are more serious than had been expected + new york one of the nation 's largest issuers of tax-exempt bonds sold $ N million of municipal bonds just a few weeks ago + there have been reports for months that the city 's economy is weakening as the october N stock market crash continues to make itself felt + the recent sharp stock market decline <unk> those concerns + meanwhile tax revenues are falling while the city 's spending needs are expanding + rumors <unk> last week that new york 's credit ratings single-a from moody 's investors service inc. and <unk> from standard & poor 's corp. are at risk + the weakness in new york city bonds follows a warning from new york state comptroller edward <unk> that the N crash seriously weakened the city 's economy + in a study the comptroller said the city 's glory days are over + mr. <unk> warned mayoral candidates to be prepared for limited options and constraints on service increases to address the city 's problems in the next few years due to the <unk> weakening in the new york city economy + new york city 's revised financial plan due out later this month is expected to include measures to balance the city 's $ N billion budget + at present analysts project a budget gap on the order of $ N million to $ N million for the fiscal year ending june N N although the city 's own budget analysts project a narrower deficit + mark page new york 's deputy director of finance said that investors ' concerns about the city 's financial health are unwarranted given our proven ability to manage ourselves + he charges the city 's critics with spreading <unk> emotional rhetoric + there are also questions about whether a new and <unk> mayor can manage the city through what could become a financial crisis + the leading <unk> for the mayoral office democrat david dinkins has been criticized recently for the way he handled his personal financial affairs + and the controversy has led to uncertainty about the outcome of the election + until last week mr. dinkins was considered a <unk> + the market can adjust to good news or bad news but uncertainty drives people wild said bernard b. <unk> chief executive of <unk> <unk> & co. a securities firm that specializes in the municipal market + until last week everyone felt certain they knew the outcome of the election + now there have been a number of questions raised + last week yields on long-term new york city general obligation bonds jumped half a percentage point + new york city 's N N bonds due N for example were quoted late friday at a price to yield N N compared with N N thursday + as the yield on new york general obligation bonds rose the bond buyer <unk> general obligation index the mostly widely followed gauge of the tax-exempt market held steady at N N in the week ended oct. N + qintex australia ltd. encountered another setback friday when its los angeles-based affiliate qintex entertainment inc. filed for protection under chapter N of the u.s. bankruptcy code + qintex entertainment also said david evans its president and chief executive and roger <unk> a director both resigned + neither could be reached for comment + earlier this month qintex australia 's $ N billion agreement to acquire mgm\/ua communications co. collapsed because of a dispute over a $ N million letter of credit the australian operator of television stations and resorts was to have supplied as security in the transaction + mr. evans had been the de <unk> head of mgm\/ua for months + qintex entertainment a producer and distributor of television programs most noted for its <unk> of the hit <unk> <unk> <unk> said it filed for chapter N protection after qintex australia failed to provide it with $ N million owed to mca inc. in connection with the distribution of the new leave it to <unk> show + qintex entertainment is N N owned by qintex australia and said it relies on the australian company for funding its working capital requirements + after the announcement of the bankruptcy filing qintex entertainment stock sank $ N in over-the-counter trading to close at $ N on heavy volume of more than N million shares + the stock traded as high as $ N this past summer + jonathan lloyd executive vice president and chief financial officer of qintex entertainment said qintex entertainment was forced to file for protection to avoid going into default under its agreement with mca + the $ N million payment was due oct. N and the deadline for default was oct. N + mr. lloyd said if qintex had defaulted it could have been required to repay $ N million in debt under its loan agreements + mca on friday said that as a result of qintex 's failure to make the required payment it was <unk> the distribution agreement on the new leave it to <unk> as well as other mca properties + qintex australia was saying as recently as last weekend that they would take care of the situation + they continued to represent that to the board said mr. lloyd + we were <unk> they would stand behind the company + mr. lloyd said both qintex entertainment and qintex australia had attempted to secure a loan that would allow the company to make the $ N million payment but the request was turned down by an unidentified lender on oct. N + at that point he said qintex australia stated it would <unk> to arrange the financing + however a qintex australia spokesman said his firm had never promised or guaranteed to make the payment + in a prepared statement from australia the company also said that following the breakdown of the mgm talks it had been <unk> its position as a significant shareholder and a substantial creditor of qintex entertainment and had resolved to minimize the degree of further loans to qintex entertainment in excess of that previously made + the qintex australia spokesman added that his company had opposed the chapter N filing + he said the company believed qintex entertainment 's financial problems could have been resolved by other means + the report of the bankruptcy filing stunned hollywood executives and investors + it 's a <unk> said joseph di <unk> chairman of <unk> capital securities a brokerage firm that has an investment in qintex entertainment + qintex australia was going to pay more than $ N billion for mgm\/ua and then they could n't come up with the far smaller sum of $ N million + qintex said mr. evans the former president resigned for personal reasons and that mr. <unk> an attorney resigned because his participation in evaluating the company 's role in buying mgm\/ua was no longer necessary + mr. <unk> was a director of the company and a predecessor firm since N + the announcement seemed to further damp prospects that talks between qintex australia and mgm\/ua might be revived + it 's understood that mgm\/ua recently contacted rupert murdoch 's news corp. which made two failed bids for the movie studio to see if the company was still interested + however we are n't currently doing anything + it is n't a current topic of conversation at the company said barry <unk> chairman and chief executive officer of the fox inc. unit of news corp + financial printer <unk> & co. said it formed a business translation service which will provide legal financial and other services in most major <unk> including japanese chinese and russian + japan 's finance ministry strongly denied playing any role in the new york <unk> free fall + <unk> utsumi vice minister for international affairs said the ministry did n't in any way suggest to japanese banks that they stay out of the ual corp. leveraged buy-out + the ministry has never even suggested that japanese banks be cautious about leveraged buy-outs in general mr. utsumi said + there are no facts behind the <unk> that we sent any kind of signal he declared in an interview + the comments were the ministry 's first detailed public statement on the subject and reflect the ministry 's concern that foreigners will think japan is using its tremendous financial power to control events in foreign markets + a number of accounts of the events leading to the N point drop in new york stock prices on oct. N accused the ministry of pulling the plug on the ual deal for one reason or another + mr. utsumi said the most the ministry had ever done was ask japanese banks about the status of their participation in one previous u.s. leveraged buy-out + the ministry <unk> about that deal which mr. utsumi declined to identify because the large presence of japanese banks in the deal was being strongly criticized in the u.s. congress and it was necessary for us to grasp the situation + he said the inquiry was n't made in a way that the banks could have interpreted as either encouraging or discouraging participation and he added that none of the japanese banks changed their posture on the deal as a result of the inquiry + mr. utsumi also said some japanese banks were willing to participate in the ual financing up to the very end which would suggest at the very least that they were n't under orders to back out + in general mr. utsumi said japanese banks are becoming more independent in their approach to overseas deals + each japanese bank has its own judgment on the profits and risks in that ual deal he said + they are becoming more independent + it 's a sound phenomenon + <unk> bank ltd. is one japanese bank that decided not to participate in the first ual proposal + a <unk> bank spokesman denied that the finance ministry played any part in the bank 's decision + we made our own decision he said + still mr. utsumi may have a hard time convincing market analysts who have <unk> or <unk> believed that the ministry played a role in <unk> recent moves by japanese banks + all week there has been much speculation in financial circles in tokyo and abroad about the ministry 's real position + bank analysts say ministry officials have been growing increasingly concerned during the past few months about japanese banks getting in over their heads + the ministry thinks the banks do n't know what they are doing that they have very little idea how to cope with risk said one foreign bank analyst who asked not to be identified + the ministry wants to see the japanese banks pull in their <unk> on leveraged buy-outs he added + although some of the japanese banks involved in the first proposed bid for ual bowed out because they found the terms <unk> observers here say they have a hard time <unk> that commercial considerations were the only reason + japanese banks are under political pressure as well the analyst said + moreover analysts point out that japanese banks have a reputation for doing deals that are n't extremely profitable if they offer the chance to build market share cement an important business relationship or curry favor with powerful bureaucrats + clearly some financial authorities are concerned about the japanese banks role in leveraged buy-outs + at a news conference this week bank of japan gov. <unk> <unk> cautioned banks to take a prudent stance regarding highly leveraged deals + despite mr. <unk> 's statements it is the finance ministry not the central bank that makes policy decisions + while recent events may cool some of the leveraged buy-out fever japanese banks are n't likely to walk away from the game + despite the risks the deals can be an attractive way for japanese banks to increase their presence in the u.s. market bank analysts say + flush with cash at home but with fewer customers to lend to leading banks are eager to expand overseas + jumping in on big deals is a high profile way to <unk> the problem of not having a strong <unk> network + france 's national tobacco company known for making <unk> cigarettes such as <unk> and <unk> is <unk> out + concerned by <unk> demand for its traditional products it is moving not only into <unk> cigarettes but also into electronic <unk> payment cards to be sold in neighborhood tobacco stores + brown tobacco in france is a more <unk> stronger grade than the lighter grade or <unk> tobacco used in so-called <unk> cigarettes + we are n't philip morris cos. says <unk> de <unk> chairman of government-owned societe <unk> <unk> <unk> des <unk> & <unk> s.a. known as seita + he says that because seita 's profits are limited by <unk> cigarette prices he does n't have the cash to diversify as heavily into food and drink as the u.s. concern has done + last year for example seita 's net profit soared N N to N million french francs $ N million on sales of <unk> N billion a N N profit margin + instead he said in an interview he is looking for ways to exploit france 's network of N tobacco agents most of them <unk> + while seita does n't own the french <unk> its close alliance with them offers distribution possibilities + one proposal is to introduce a new payment system for parking in paris + instead of paying for parking by putting money in the existing machines which deliver little paper receipts drivers would be able to buy electronic cards in local tobacco shops + once <unk> the card would sit in the car 's window showing traffic <unk> how much time the <unk> could remain + when the <unk> returned to his car he could turn the card off and if it showed time remaining save it for later + seita is a partner in the project which was developed by <unk> <unk> using japanese technology + seita and <unk> currently are negotiating with city officials for the right to begin service + and seita is considering further diversification + it wanted to buy rjr nabisco inc. 's french <unk> subsidiary <unk> in hopes of selling its products in tobacco stores but lost the bidding to food group bsn <unk> + it currently is considering bidding for swedish match co + and it retains an interest in acquiring <unk> and other articles that might be sold in tobacco shops + it also is trying to shore up its tobacco business + <unk> cigarettes such as <unk> now make up just N N of the french tobacco market half the level of about two decades ago + while seita retains a manufacturing monopoly in france it is being hurt by rising imports and from <unk> cigarette demand + so seita has introduced <unk> cigarettes under the <unk> label and intends to <unk> the unsuccessful <unk> <unk> in new packaging similar to the <unk> used by <unk> <unk> + the aim says mr. de <unk> is to win market share from imported cigarettes and to persuade smokers who are switching to <unk> cigarettes to keep buying french + when the supreme court upheld missouri 's abortion restrictions last july the justices almost certainly did n't have drunk driving <unk> and false <unk> on their minds + but the N ruling may have had as much immediate impact on those activities especially <unk> as on abortion rights + the decision webster vs. reproductive health services illustrates how supreme court rulings often have a <unk> effect spreading into areas of law and policy that were n't part of the actual cases decided and that never were contemplated by the justices + in the missouri case <unk> consequences may have <unk> because the high court <unk> the preamble of the state 's N abortion law + the preamble says that human life begins at conception and that <unk> children have rights protected by the constitution + last year a federal appeals court in st. louis said the preamble was unconstitutional citing an earlier supreme court ruling that states ca n't justify <unk> abortion curbs by changing the definition of when life begins + but the supreme court concluded that it was <unk> to rule on the <unk> of the preamble because the definition of human life had n't yet been used to restrict abortion services + the high court majority said it was up to the state courts for now to decide whether the definition has any bearing on other state laws + already local missouri judges have relied on the restored preamble in two separate cases to throw out criminal trespass charges against anti-abortion demonstrators who blocked access to reproductive health services an abortion clinic in st. louis + the protesters said their actions were justified by the desire to save the lives of <unk> children + under a N missouri law persons accused of some crimes including <unk> may offer a defense that their actions were justified as an emergency measure to avoid an imminent public or private injury + relying on the preamble 's statement that a <unk> is an <unk> child the two st. louis county circuit court judges in august accepted the <unk> that the abortion clinic protesters were trying to save lives + in another case a <unk> ann o'brien was convicted of trespass before the supreme court 's webster ruling + last week when her appeal was argued before the missouri court of appeals her lawyer also relied on the preamble + the effect of the supreme court webster opinion is that it left room for <unk> to grow in the cracks of roe vs. wade and i think this is one of the cracks said mark <unk> a st. louis lawyer who represented ms. o'brien and the other st. louis protesters + roe vs. wade was the supreme court 's N decision that recognized a woman 's right to abortion + mario <unk> president of kansas city lawyers for life says that if abortion foes succeed in using the preamble to escape prosecution for trespass this will shut down abortion in missouri + there 's no risk to the protesters and you ca n't keep an abortion clinic open if there are N people standing outside every day + that would be an ironic result of a case in which the supreme court <unk> stopped short of <unk> roe vs. wade + in two other cases the possible consequences of the supreme court ruling appear even more <unk> + in one the lawyer for a <unk> resident of columbia mo. who was charged with drunk driving argued that his client should be treated as a <unk> adult because his actual age should be calculated from conception not from birth + in missouri those caught drinking and driving between the ages of N and N may have their licenses <unk> for one year while those N or older suffer only a 30-day suspension + a boone county judge rejected the motion but daniel <unk> a jefferson city lawyer says he has appealed + and in a case filed in federal court in august a lawyer is arguing that missouri authorities are <unk> <unk> the <unk> of a pregnant woman who is in jail for theft and <unk> + in terms of sheer <unk> the <unk> regime of <unk> barre may rank as no. N in the world + the only reason that somalia remains in <unk> is numbers a <unk> <unk> <unk> of N million people spread out over an <unk> nearly the size of texas + the barre <unk> simply is limited in the amount of people it can <unk> and kill + <unk> small children <unk> elderly people to death <unk> and shooting women and <unk> people alive are just a few of the <unk> activities that the <unk> armed forces have been engaged in over the past two years + up to N <unk> have escaped to the relative safety of marxist ethiopia because of the behavior of president barre 's troops + in the port of <unk> for example hundreds of men of the rival <unk> <unk> were <unk> up in may N <unk> and then taken out at night in groups of five to N men to be executed without any judicial process <unk> + guns were never used each man was <unk> to death with a large <unk> + the <unk> details are only now emerging from a <unk> <unk> report based on hundreds of interviews with <unk> selected refugees + the study was done by robert <unk> a consultant to the u.s. state department who has years of experience in investigating human-rights abuses on both sides of the <unk> ideological divide + what gives these events particular significance however is the fact that they are part of a wider drama affecting the strategic positions of both the u.s. and the soviet union on the horn of africa + not since the late 1970s has the horn been so up for <unk> as it has suddenly become in just the past few weeks + mr. barre 's rule is crumbling fast + <unk> <unk> his armed forces really just an armed gang which control less than half the country + inflation is at record levels + desperate he has called in the <unk> to help fight the rebels of the <unk> national movement in the north which is only one of several groups picking away at the regime in the capital of <unk> + <unk> years old and a <unk> scientific socialist president barre has a power base composed only of his minority <unk> <unk> that according to observers is narrowing + the u.s. 's interest in somalia consists of a single runway at the port of <unk> which u.s. military aircraft have the right to use for <unk> of the gulf of <unk> and the indian ocean + that strip of concrete is backed up by a few <unk> <unk> <unk> where a handful of american <unk> <unk> by imported food cold soft drinks and back issues of sports illustrated maintain radio contact with the outside world + in the past two years the desert behind them has become a land of mass executions and <unk> <unk> where due to mr. barre 's <unk> and <unk> nobody is any longer in control + as long as the rival <unk> regime of mengistu <unk> <unk> held a total gridlock over neighboring ethiopia the u.s. was forced to accept that <unk> <unk> runway as a distant no. N to the soviets ' array of <unk> next door + but due to dramatic events on the <unk> over the past few days and weeks those soviet bases may soon be as endangered and as <unk> as the american runway + on sept. N i wrote on these pages about the killing and <unk> of N <unk> soldiers by <unk> and <unk> guerrillas + recently in <unk> province in the center of ethiopia <unk> forces have killed <unk> and captured an additional N government troops + think what these numbers mean considering the headline space devoted to hundreds of deaths in lebanon a small country of little strategic importance + <unk> <unk> are now N miles north of <unk> <unk> threatening the town of <unk> which would cut off mr. mengistu 's capital from the port of <unk> through which all fuel and other supplies reach <unk> <unk> + as a result mr. mengistu has been forced to transfer thousands of troops from <unk> just to hold the town thereby <unk> the loss of even more territory in <unk> only to keep the <unk> at bay + mr. mengistu is in an increasingly weak position half his army is tied down defending the northern city of <unk> from the <unk> + the weaker he gets the more he turns toward the u.s. for help + while the <unk> are communists like the <unk> they are among the most <unk> guerrillas in the world having suffered more than a decade of <unk> <unk> by the <unk> mengistu air force + what this all means in <unk> is that soviet dominance in ethiopia is <unk> as fast as president barre 's regime in somalia is + the u.s. therefore has a historic opportunity both to strike a blow for human rights in somalia and to undo the <unk> <unk> of the late 1970s on the horn of africa + back to somalia + the state department to its credit has already begun <unk> itself from mr. barre <unk> by its decision to publish the <unk> report which the press has ignored + what 's more the u.s. has suspended $ N million in military aid and $ N million in economic aid + but this is not enough + because the u.s. is still perceived to be tied to mr. barre when he goes the runway could go too + considering how <unk> the security of that runway is anyway the better option both morally and <unk> would be for the bush administration to blast the regime publicly in terms clear enough for all influential <unk> to understand + it is a <unk> that mr. barre 's days are numbered + the u.s. should take care however that its own position in the country does not go down with him + nobody is sure what will come next in somalia or whom the successor might be + but as one expert tells me whoever it is will have to work pretty damn hard to be worse than barre + while the state department positions itself for the <unk> period in somalia it should continue to back former president carter 's <unk> role as a mediator between mr. mengistu and the <unk> guerrillas in ethiopia while <unk> opening up channels of communications with the <unk> rebels through neighboring <unk> + <unk> politics are the most sophisticated <unk> and <unk> in all of black africa + remember that it took mr. mengistu many months in what became known as the creeping coup to topple <unk> <unk> <unk> in N and N + there is simply no way to engineer a succession <unk> as is sometimes possible elsewhere on the continent + but the u.s. has one great advantage the soviets are <unk> <unk> throughout ethiopia for what they did to the country this past decade <unk> and all + it 's not just in eastern europe where the march of events is finally on the u.s. side but on the horn of africa as well + the only u.s. liability in the region is what remains of the link to mr. barre and that should be cut fast + mr. <unk> author of surrender or <unk> the wars behind the <unk> <unk> press N lives in <unk> + <unk> inc. <unk> <unk> calif. got an $ N million navy contract for <unk> systems + general electric co. received a $ N million air force contract for <unk> nose <unk> + goodyear tire & rubber co. was awarded a $ N million army contract for <unk> parts + <unk> sciences corp. was awarded a $ N million air force contract for technical support + mccormick capital inc. said the final <unk> factor was N on its oversubscribed $ <unk> tender offer to buy back as many as N million of its common shares + payment will begin as soon as oct. N the company said + mccormick is a developer and manager of <unk> limited partnerships + through a separate agreement between peter <unk> president and a group of selling shareholders the company said mr. <unk> will on oct. N buy N shares from the group boosting his stake to about N shares or N N of the total after the buy-back + canada 's consumer price index rose a seasonally adjusted N N in september from august statistics canada a federal agency said + the rise followed boosts of N N in august N N in july and N N in june + opec 's ability to produce more petroleum than it can sell is beginning to cast a shadow over world oil markets + output from the organization of petroleum exporting countries is already at a high for the year and most member nations are running flat out + but industry and opec officials agree that a handful of members still have enough unused capacity to <unk> the market and cause an <unk> collapse a few months from now if opec does n't soon adopt a new quota system to <unk> its <unk> <unk> + as a result the effort by some oil ministers to get opec to approve a new permanent <unk> agreement next month is taking on increasing urgency + the organization is scheduled to meet in vienna beginning nov. N + so far this year rising demand for opec oil and production restraint by some members have kept prices firm despite rampant cheating by others + but that could change if demand for opec 's oil <unk> seasonally early next year as some think may happen + opec is currently producing more than N million barrels a day sharply above its nominal <unk> fourth-quarter ceiling of N million according to opec and industry officials at an oil conference here sponsored by the oil daily and the international herald tribune + at that rate a majority of opec 's N members have reached their output limits they said + but it is estimated that at least three million barrels a day and possibly as much as seven million barrels a day of spare capacity still exists within opec + most is concentrated in five persian gulf countries including his own <unk> <unk> <unk> 's oil minister told the conference friday + he puts opec 's current capacity at N million to N million barrels a day + that 's higher than some other estimates + <unk> <unk> <unk> kuwait 's oil minister recently estimated opec capacity at N million barrels a day + either way the <unk> is big enough to keep <unk> balanced oil markets on edge + even modest amounts of additional output by those with the huge extra capacity and reserves such as saudi arabia and <unk> could upset the market + the <unk> oil minister and saudi oil minister <unk> <unk> insisted in their comments to the conference that their countries would act <unk> to maintain a stable market + however in interviews later both ministers stressed that they expect future opec quotas to be based mainly on the production capacity and reserves of each member + under that approach countries with the most unused oil capacity would get bigger shares of any future increases in opec 's production ceiling than they would under the current system + if you are already producing at N N or N N of your capacity what 's the good to be told you can produce at N N of capacity asked mr. <unk> + at an <unk> geneva meeting late last month opec 's oil ministers <unk> approved another increase of one million barrels a day in their production ceiling + they <unk> it out using the existing formula however which meant that even those countries that could n't produce more received higher official <unk> + the main effect of the ceiling boost was to <unk> some of the <unk> already coming from the quota <unk> + still there was a <unk> at geneva + previously no opec member had been willing to accept a reduction in its percentage share of the group 's total output target or ceiling + but the concept of disproportionate quotas for those with unused capacity advanced there in an iranian proposal was generally endorsed by the ministers + in the end politics got in the way + libya accepted iran 's proposal only so long as it was promised production parity with kuwait + and the united arab <unk> a <unk> quota <unk> refused to give any guarantee it would change its ways + but the oil ministers continue to study the plan and it will probably be the basis for discussion at next month 's meeting + it 's understood several <unk> already have been worked into the plan + the ceiling would be lifted to N million barrels to provide kuwait and the united arab <unk> much higher official quotas while reducing percentage shares of some others + libya 's previous conditions are no longer considered a problem although the united arab <unk> is still an issue + saudi arabia opec 's <unk> also has surfaced as a possible obstacle some opec sources said + insisting on a N N share of any ceiling saudi officials have long pressed for the pro <unk> distribution of increases to all members + in geneva however they supported iran 's proposal because it would have left the saudi percentage of the opec total intact and increased actual saudi volume to nearly N million barrels daily from five million + some of the proposed modifications since however call on saudi arabia to give back to the <unk> pool a <unk> N barrels + though tiny that 's a reduction in its share + mr. <unk> the saudi oil minister reiterated here that the kingdom would insist on maintaining its percentage share of opec production under any quota revisions + under any circumstances saudi arabia should get more rather than less mr. <unk> said + in a blow to france 's rafale jet fighter the french navy for the first time publicly stated its desire to buy N mcdonnell douglas corp. <unk> <unk> to defend its aircraft carriers + the statement is likely to <unk> the debate within france 's military establishment over the rafale which is made by <unk> <unk> <unk> aviation <unk> + in an interview in the navy 's official weekly magazine <unk> <unk> the navy 's <unk> adm. <unk> goupil said the navy still intends to buy N <unk> as scheduled in the late 1990s and early <unk> century + the air force is to take at least N more + adm. goupil said the navy ca n't wait until N when the naval rafale becomes available to replace its <unk> fleet of <unk> crusaders used since the 1950s to protect carriers from attack + rather than <unk> the crusaders which dassault is proposing to do for around N billion french francs $ N million adm. goupil said the navy wants to buy used <unk> from the u.s. navy + officially the statement is n't an attack on the rafale + adm. goupil said that when the <unk> wear out the navy is prepared to take <unk> to replace them + but <unk> senior navy officials sharply <unk> the rafale as an air force plane <unk> to carrier use + although they never said so publicly they have made no secret of their preference for the <unk> on operational grounds + adm. goupil 's comments are likely to <unk> the broader dispute within the military establishment here over the role of dassault + although <unk> dassault still is run by the founder 's son chairman <unk> dassault who has fiercely protected his company 's independence + the rafale project is the result of france 's inability jointly to develop a plane with other countries and french officials question whether the state can continue paying for expensive independent programs + so far mr. dassault has resisted pressure to change + what brought the naval issue to a head is that the crusaders are literally falling apart without any immediate plan to replace them + adm. goupil a former <unk> <unk> leader said that the last other country to use crusaders the philippines retired its last ones two years ago + a french <unk> crash a few months ago heightened pressure for new planes here + adm. goupil rejected dassault 's proposal to <unk> the crusaders saying the cost was impossible to estimate + even <unk> he said the crusaders represent an <unk> and dangerous protection for the aircraft carriers france has sent to meet such crises as the wars in lebanon and the persian gulf + defense minister <unk> <unk> told a meeting of the <unk> press association that the question of <unk> the crusaders or buying used <unk> is a political decision that he will make in due time + the supreme court ruling <unk> missouri 's restrictive abortion law was webster vs. reproductive health services + the <unk> was misstated in friday 's edition + spending by average japanese households in august fell an adjusted N N from a year earlier the statistics bureau of the prime minister 's office said + the bureau cited <unk> in the month that discouraged shopping and leisure opportunities + spending by japanese households averaged N yen $ N in august + in nominal terms it rose N N from a year earlier before adjustment + august adjusted spending by <unk> families was down N N to N yen from a year earlier + the real income of <unk> families in the month eased N N to N yen from the previous year + for cathay pacific airways the smooth ride may be ending + the first signs of trouble came last month when the hong kong carrier a subsidiary of <unk> pacific ltd. posted a N N drop in operating profit for the first six months and warned that margins will remain under pressure for the rest of the year + securities analysts many of whom scrapped their buy recommendations after seeing cathay 's interim figures believe more <unk> lie ahead + fuel and personnel costs are rising and tourism in and through hong kong remains <unk> by china 's turmoil since the june N killings in beijing + in addition delivery delays for the first two of as many as N boeing <unk> that the carrier has ordered have raised costs because personnel had been hired to man the planes + and tough competition in the air-freight market is cutting into an important sideline + there also is concern that once hong kong <unk> to china 's sovereignty in N cathay will be forced to play second <unk> to china 's <unk> flag carrier civil aviation administration of china or <unk> + the sense is we would never be in a position again where everything works for us the way it did before says rod eddington cathay 's commercial director + <unk> hall an analyst at james capel far east ltd. says there is n't much cathay can do about rising costs for jet fuel hong kong 's tight labor market or the strengthening of the local currency which is pegged to the u.s. dollar + these factors are further complicated by the airline 's push to transform itself from a regional carrier to an international one ms. hall says + ms. hall expects cathay 's profit to grow around N N annually this year and next + in N it earned $ N billion hong kong us$ N million on revenue of hk$ N billion + cathay is taking several steps to bolster business + one step is to beef up its fleet + in addition to aircraft from boeing co. cathay announced earlier this year an order for as many as N airbus <unk> + the expansion which could cost as much as us$ N billion over the next eight years will expand the fleet to about N planes by N up from N at the end of last year according to sun hung <unk> securities ltd + the <unk> airbus planes will be used largely to replace cathay 's aging fleet of lockheed <unk> for regional flights while the boeing aircraft will be used on <unk> routes to europe and north america + cathay also is moving some of its <unk> <unk> operations outside hong kong + fierce bidding for young employees in hong kong is pushing up cathay 's labor costs by N N a year for <unk> staff while experienced skilled employees are leaving the colony as part of the brain drain + some jobs already have been moved to australia and there are plans to place others in canada + david bell a spokesman for the airline says the move is partly aimed at retaining existing staff who are leaving to secure foreign <unk> ahead of N + cathay is working to promote hong kong as a <unk> worth visiting on its own merits rather than just a <unk> + although the june N killings in beijing have hurt its china flights cathay 's other routes have retained high load factors + mr. eddington <unk> promoting hong kong as an important part of attracting visitors from japan south korea and taiwan where the number of people looking to travel abroad has surged + there also has been speculation that cathay will be among the major private-sector participants in the hong kong government 's plans to build a new airport with the carrier possibly investing in its own terminal + cathay officials decline to comment on the speculation + mr. eddington sees alliances with other carriers particularly cathay 's recent link with amr corp. 's american airlines as an important part of cathay 's strategy + but he <unk> that cathay has n't any interest in <unk> equity stakes with the u.s. carrier or with lufthansa the west german airline with which it has <unk> for about a decade + analysts believe cathay is approached for such swaps by other carriers on a regular basis particularly as the popularity of share exchanges has grown among european carriers + we think alliances are very important mr. eddington says + but we 'd rather put funds into our own business rather than someone else 's + i 'm not sure <unk> would necessarily make things <unk> + in a pattern it aims to copy in several key u.s. <unk> cathay recently announced plans to serve san francisco by flying into american airlines ' los angeles hub and <unk> continuing passengers onto a flight on the u.s. carrier + we 'll never have a big operation in the u.s. and they 'll never have one as big as us in the pacific mr. eddington says + but this way american will coordinate good <unk> to boston new york chicago and dallas + we 'll coordinate on this end to places like <unk> singapore and manila + asian traffic which currently accounts for N N of cathay 's business is expected to continue as the carrier 's mainstay + cathay has long stated its desire to double its weekly flights into china to N and it is applying to <unk> <unk> flights into vietnam + further expansion into southern europe is also possible says mr. bell the spokesman + while a large number of hong kong companies have <unk> offshore ahead of N such a move is n't an option for cathay because it would jeopardize its landing rights in hong kong + and mr. eddington <unk> rules out a move to london our <unk> is hong kong traffic rights + he says the airline is putting its faith in the <unk> agreement on hong kong 's return to china + a special section dealing with aviation rights states that landing rights for hong kong 's airlines which include the smaller hong kong <unk> airlines will continue to be negotiated by hong kong 's government + but critics <unk> that <unk> officials ultimately will be responsible to beijing + my feeling is cathay does n't have a hope in the long run says an analyst who declines to be identified + cathay would love to keep going but the general sense is they 're going to have to do something + mr. eddington acknowledges that the carrier will have to <unk> and <unk> to local changes but he feels that the <unk> agreement is firm ground to build on for the foreseeable future + we 're confident that it protects our route structure he says and our ability to grow and <unk> + falcon cable systems co. said it proposed an amendment that would allow it to increase its debt cap to N N of the company 's fair market value from the N N currently allowed + falcon a limited partnership said it wanted the increase in order to continue its $ <unk> annual payment and for expansion and acquisitions + a spokesman for the company said a meeting would be held for shareholders to vote on the amendment before year 's end + friday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N <unk> N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + in the <unk> marina neighborhood life after the earthquake is often all too real but sometimes <unk> + some scenes saturday morning a resident was given N minutes to <unk> into a sagging building and reclaim what she could of her life 's <unk> + saturday night she <unk> in an emergency shelter on <unk> <unk> prepared by chefs from one of the city 's <unk> restaurants + mayor art agnos stands in the glare of television lights trying to explain for the 20th time why the city is severely restricting access to badly damaged structures + a couple in fashionable <unk> <unk> suits <unk> by <unk> <unk> in place <unk> their way along a street of <unk> and fallen houses + at a nearby corner they <unk> <unk> close to a listing apartment house <unk> to any danger + a <unk> <unk> his head in <unk> as he <unk> them away + a young woman who has been out of town shows up at the marina middle school to learn that her apartment is on the <unk> list + she is told she ca n't enter unless she is accompanied by an inspector + she bursts into <unk> and walks away + nearby five temporary residents of the school shelter sit on <unk> having their <unk> and backs <unk> by volunteer <unk> + the marina rescue center offered a very san <unk> response to the disaster + in addition to free massages there was free counseling phone calls and a free shuttle bus to a health club which offered up its <unk> <unk> and hot <unk> + the cafeteria offered donated <unk> and <unk> for breakfast and for dinner pasta <unk> and <unk> <unk> <unk> along with the <unk> + this has been a <unk> earthquake for me said resident joan <unk> who works in an <unk> 's office + she and some friends are considering offering earthquake victims free <unk> classes and <unk> therapy massages with <unk> oils + she finds the response of marina residents primarily <unk> and elderly people to the devastation of their homes incredible + people have been very <unk> of each other + i do n't know if this would have happened somewhere else + out on the streets some residents of badly damaged buildings were allowed a <unk> <unk> hunt through their <unk> + it 's so weird to have to decide what 's really important to you said barbara may + she went first for personal <unk> + in <unk> <unk> her building is a red + after being <unk> buildings with substantial damage were <unk> + green allowed residents to <unk> yellow allowed limited access red allowed residents one last entry to gather everything they could within N minutes + <unk> and <unk> went about their business with a kind of measured <unk> + some <unk> dumped <unk> into <unk> others threw goods out windows + it did n't help that on saturday after three days of <unk> it <unk> + the guys are going for their <unk> their <unk> their personal computers said frank <unk> who helped others empty their apartments + the women wanted photo <unk> a certain <unk> kind of <unk> things + he showed an <unk> <unk> <unk> watch that he <unk> for one woman + it <unk> to her <unk> + some residents <unk> orders and returned to red buildings to retrieve goods + one building was upgraded to red status while people were taking things out and a resident who was n't allowed to go back inside called up the <unk> to his girlfriend telling her to keep sending things down to the lobby + a <unk> had to be called in to make her leave the <unk> helped carry out one last load + enforcement of <unk> rules was sporadic residents said + one man trying to remove his car was told by officials to get out of his garage + when he <unk> back later to try again a different <unk> offered to help him get the car out + the marina also has become the <unk> point of city efforts to <unk> residents with any <unk> that may have fled or become lost during the earthquake + on <unk> along <unk> street a major marina artery <unk> were offering a $ N reward for a cat lost during the quake + the san francisco society for the prevention of <unk> to animals also has been providing medical care food water and foster homes for <unk> animals + the <unk> says it has received more than N requests for foster homes on behalf of dogs and <unk> though some people have sought temporary homes for birds and fish + for example one <unk> owner returning home found that her apartment like many others in the marina did n't have heat + she can stay there with no heat but for a <unk> that can be deadly says <unk> <unk> <unk> services manager for the <unk> + a warm foster home has been found + the neighborhood around alexander <unk> co. 's vermont-slauson shopping center in the watts section of los angeles resembles the <unk> deteriorating sections of many inner cities and certainly is n't the sort of area one would choose to visit + but turn into the shopping center 's parking lot and one could be in the safe busy mall of a <unk> suburb + only it is safer and <unk> + over the past year there have been only one <unk> three <unk> of or from autos no <unk> and one attempted <unk> in the mall which opened in late N + a shopping center of similar size in an affluent los angeles suburb would per year be expected to have eight <unk> N <unk> of or from autos and four <unk> + the watts mall has annual sales of more than $ N per <unk> square foot the figure for a comparable suburban shopping center would be $ N + three other <unk> shopping centers in the watts area are doing almost as well + a successful <unk> mall in a <unk> area violates the more typical inner-city pattern in which commercial areas are taken over by <unk> youth gangs and the criminal element with an erosion of the customer base development capital and <unk> + major regional and national chain stores are replaced by <unk> operations offering <unk> merchandise at higher prices + along with the exodus of shopping opportunities is an exodus of the jobs that the major chains used to provide to community residents + thus there is even more to the vermont-slauson center than a good place to shop + this <unk> commercial zone becomes for the residents a secure <unk> in a <unk> urban landscape evidence that community <unk> is not inevitable and that the gangs are not <unk> + the center improves the community image to outsiders as well and may help to arrest or even reverse the exodus of capital and investment + an additional benefit is the creation of jobs + this starts in the construction phase through the use of minority contractors and local workers + it continues through the life of the center the vermont-slauson center has created N permanent private-sector jobs at a one-time cost in public funds of only $ N per job + as many of these jobs are filled by local residents who move from the welfare rolls to the tax rolls the $ <unk> public investment should repay itself in a few years + and that is before consideration of increased state and local revenues from taxes and fees on sales real estate licenses and the like + profits are also <unk> back into the community the <unk> vermont-slauson economic development corp. receives N N of the profits from the vermont-slauson center and uses the money to provide moderate and low-cost housing in the community now running into the hundreds of units as well as commercial and industrial development projects + bradford <unk> director of the mayor 's city economic development office says there is no question that vermont-slauson had a <unk> effect on the surrounding neighborhood + what had been a deteriorated area with nothing but <unk> shops and <unk> shops is now experiencing a major upgrading in the housing and commercial stock thanks to a <unk> <unk> source of <unk> capital that vermont-slauson yields + another benefit is that substantial <unk> of the <unk> in these centers are minority businessmen and women + in the grand <unk> plaza developed by <unk> realty group in chicago 's third ward opposite the robert taylor homes N N of the stores to date have been leased to blacks and N N to members of other minority groups + children from the community will have <unk> role models than the drug <unk> + so what 's the catch + primarily that putting one of these inner-city deals together takes time patience <unk> of vision and negotiating skills that not all developers <unk> + security costs are also quite high + one of these centers can involve years of negotiating with numerous public agencies local political leaders and citizen groups and with prospective tenants and sources of financing + suburban deals are not without their delays and <unk> inner-city deals just have more of them + security at a typical <unk> inner-city center is impressive but <unk> + the entire site is <unk> by a <unk> <unk> iron <unk> with a small number of <unk> gates + <unk> and flowers give it a <unk> and <unk> appearance + <unk> motion detectors and <unk> tv cameras monitor the entire center lighting levels are three to five times the industry standard + the security command post <unk> as <unk> retail space has its own <unk> 's <unk> above the <unk> of the other buildings with a <unk> view of the entire center + local law enforcement is present in a <unk> <unk> space donated by the center + these features are also used in <unk> realty group 's grand <unk> plaza + <unk> has its own large security force of <unk> and <unk> personnel on <unk> duty at each center + security is N N to N N of the common area charges of these centers vs. an industry average of about N N + these security costs are kept <unk> because the centers ' site acquisition construction and financing costs were reduced by such programs as urban development action grants economic development administration grants community development block grants tax-free industrial development bonds enterprise zone tax write-offs city infrastructure grants and tax <unk> financing + many of these programs no longer exist or have been severely cut back + however since these centers appear to pay for themselves there is nothing to prevent state and local governments from <unk> legislation with similar provisions + many states already have enterprise zones and legislation that combines tax incentives loans and grants to encourage investment in depressed areas with requirements for the hiring of the <unk> and minorities + these programs could be expanded to focus on funds for project planning identifying sources of funds and for acquiring a site and preparing it + <unk> crime and the fear of it in inner-city commercial areas should give enterprise zones more success than most have enjoyed to date + with many suburban areas basically overbuilt with shopping centers inner-city areas may represent a major new <unk> market for investment + new approaches to mall design and operation make it possible to tap these markets + if the risks and rewards are reasonable developers will respond + government officials who wonder how important it is for them to encourage development in high-risk areas should visit vermont-slauson and grand <unk> plaza and decide for themselves + the answer will be obvious + mr. <unk> is a researcher at the justice department 's national institute of justice + <unk> industries inc. said that on dec. N it will redeem $ N million face amount of its $ N million of N N subordinated notes outstanding due june N N + for each $ N of notes the maker of specialty metals industrial fasteners and consumer products will pay $ N plus $ N of interest accrued from dec. N + the company will notify holders of the notes to be redeemed + manufacturers hanover trust co. is redemption agent + one company recently was listed on the new york stock exchange and another will join the big board from the over-the-counter market this week + <unk> investment grade municipal trust boston was listed with the symbol <unk> + the new closed-end management investment company trades shares of beneficial interest + it invests primarily in tax-exempt municipal securities + <unk> corp. a new orleans bank holding company will join the big board thursday under <unk> + three companies began trading over the counter + <unk> corp. a <unk> colo. maker of <unk> tape <unk> systems used to back up computer disk drives started otc trading with the symbol <unk> + rally 's inc. a louisville ky. restaurant <unk> started trading under <unk> + sierra tucson cos. tucson ariz. started trading under <unk> + it operates various types of <unk> facilities + separately on the pacific stock exchange put and call options on the common stock of <unk> corp. started trading + <unk> seattle makes computer software products + options give a holder the right but not the obligation to buy or sell a security at a set price within a set period of time + dow chemical co. said its <unk> energy inc. unit has agreed to buy pse inc. a houston energy company in a deal valued at about $ N million + dow of midland mich. said its unit will begin by thursday a tender offer of $ N a share for all pse common shares outstanding + among other conditions the offer depends on the dow unit acquiring at least N N N of the pse shares outstanding the companies said in a joint statement friday + pse has about N million shares outstanding + the company said the approximately $ N million acquisition price includes its total $ N million of long-term debt outstanding + dow said it already has agreements with albert j. smith jr. chairman and chief executive officer of pse and certain other officers of the company under which dow may buy about N N of the pse common shares outstanding + pse is a designer and operator of <unk> facilities and had N sales of $ N million + the company is owner and operator or an equity partner in six <unk> facilities two in texas and four in california + the company said recently it expects third-quarter earnings will be in range from $ N million to $ N million or N cents to N cents a share compared with $ N or four cents a share a year ago + if growth <unk> its <unk> among investors a sluggish segment of the nasdaq over-the-counter market could show some <unk> + some stock pickers already are targeting the otc market where they say await plenty of small and medium-sized growth stocks + best of all they add these growth issues unlike their big blue-chip <unk> on the new york stock exchange are <unk> at depressed prices + growth stocks will return to favor some analysts and money managers think because of the jitters caused by the market 's steep slide on oct. N and because of the current swell of disappointing earnings announcements + against such a backdrop companies with proven track records of earnings gains of N N or so annually have extra appeal + the market will have to look for a new theme now and that theme will be a return to growth declares mary farrell a painewebber analyst + among her otc picks are <unk> <unk> and <unk> brands + like many otc growth issues they have market values as measured by stock price times shares outstanding of roughly $ N million to $ N million + some like to specialize in growth companies whose shares have n't traded publicly very long + these are sometimes dubbed emerging growth companies though they also have <unk> track records + while many growth stocks are small not all small stocks have <unk> momentum + that 's an important <unk> because some analysts and brokers who <unk> predict that small stocks are about to outperform bigger issues may use any <unk> in growth issues to help them sell all small stocks + you can find some good quality companies over the counter but investors should be selective says john <unk> chief portfolio manager at <unk> investors a newark n.j. money management company with about $ N million invested in growth stocks of <unk> <unk> + mr. <unk> 's picks from the otc market include legent mail boxes etc. and <unk> american + the main argument for growth stocks is their usually superior performance in a slowing economy + if the market <unk> on earnings we should get better <unk> of growth stocks says l. keith mullins a <unk> analyst at morgan stanley + eventually he believes investors will be willing to pay higher prices for companies with proven track records of earnings growth + in anticipation of that shift he and other analysts are encouraging their clients to buy such issues now + <unk> smaller growth stocks have n't been in favor recently + the average issue on standard & poor 's 500-stock index gained N N last year ms. farrell of painewebber says + <unk> earnings by comparison rose between N N and N N + in addition earnings growth took a back seat to cash flow restructuring and takeover potential and breakup value as the preferred <unk> standards for much of the year + also the smaller growth stocks are n't widely traded and so are harder to buy and sell quickly than blue chips + as a result morgan stanley 's index of N emerging growth stocks most of which are in the otc market is up only N N for the year while the dow jones industrial average has leaped N N and the s&p N has grown N N + the nasdaq composite has gained N N this year but that 's largely due to the N largest <unk> stocks which have soared N N + some investors are skeptical of growth stocks because investing in them means ignoring that <unk> found in the fine print of some investment advertisements that past performance is n't <unk> of future results + people are naturally <unk> of them says mr. mullins of morgan stanley + among his <unk> in his firm 's index are legent silicon graphics and <unk> + however more money managers are <unk> that profit is <unk> importance + mark <unk> portfolio manager at <unk> <unk> capital management says that in reaction to nervousness about <unk> buy-out transactions analysts and investors now appear to be <unk> stock based on future earnings as opposed to the amount of debt the company can support + barney <unk> managing director of research at hambrecht & quist also believes earnings growth is beginning to play a greater part in investors ' buying decisions + on friday hambrecht & quist added st. <unk> medical to the list of N stocks it strongly recommends + the opinion is largely based on the company 's earnings momentum mr. <unk> says + st. <unk> 's market value on nasdaq exceeds $ N billion so it is n't a small stock + the medical devices maker 's earnings rose nearly N N in N from N and N N in N + kurt <unk> who follows the stock for hambrecht & quist anticipates that the company 's net income will grow N N to $ N a share this year + st. <unk> finished up N to N N on friday + friday 's market activity + the nasdaq composite index eased N to N + the composite finished up N N from last friday 's close + it was a busy week for otc stocks + friday 's volume totaled N million shares the daily average for the week was a <unk> N million + valley national lost N N to N N on volume of N million shares + the company reported a big third-quarter loss on thursday + merchants bank of new york lost N to N after reporting that its third-quarter net income fell to $ N a share from last year 's $ N a share + <unk> savings bank lost N to N N after reporting that it had a $ N million loss in the latest third quarter mostly because of loan-loss provisions + in the N quarter the bank earned $ N million + one bank stock was a winner + banponce jumped N N to N N after agreeing to be acquired by banco popular de puerto rico for $ N a share + banco popular meanwhile dropped N N to N N + sierra tucson an initial public offering made the most active list + the company 's shares began trading at N N up from its initial offering price of N and closed at N + sierra tucson operates an <unk> treatment center + among declining issues a weak earnings outlook drove <unk> technology down N N to N + the company said results for its second quarter ended oct. N could drop as much as N N below the N cents a share reported in the year-earlier quarter + <unk> international plummeted N N to N N + a food and drug administration advisory panel has asked that <unk> perform more studies on its device to treat <unk> + qintex entertainment dropped N N to N N after seeking protection from creditor lawsuits under chapter N of the federal bankruptcy code for itself and its two operating subsidiaries <unk> <unk> studios and qintex productions + raymond corp. lost N to N after it said late thursday that it will take a $ N million charge in its third quarter for reserves to cover potential charges in connection with the closing and sale of a manufacturing plant + as a result the company has suspended its quarterly dividend + mccaw cellular communications and its target lin broadcasting were active + lin added N to N N and mccaw lost N to N + mccaw said it has secured commitments from three banks to help finance its $ <unk> bid for N million of lin 's shares + mccaw has called for a fair auction of lin which earlier entered a <unk> merger pact with bellsouth + following the release of the company 's fourth-quarter earnings apple computer dropped N to N on volume of more than N million shares + apple earned $ N million or $ N a share in the quarter including $ N million from the sale of its adobe systems stock + the following were among friday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + chicago & north western acquisition corp. $ N million of senior subordinated <unk> debentures due oct. N N priced at par to yield N N + the coupon will be reset in one year at a rate that will give the issue a market value of N + however the maximum coupon rate on the issue when it is reset can only be N N + debenture holders will also receive the equivalent of N N of the common stock of cnw holdings + the equity <unk> is not attached to the offering but underwriters said it will be offered after a filing for N common shares of cnw holdings is declared effective by the securities & exchange commission + the issue is noncallable for five years and has a sinking fund starting in N to retire N N of the issue before maturity + rated <unk> by moody 's investors service inc. and <unk> by standard & poor 's corp. the issue will be sold through underwriters led by donaldson lufkin & jenrette securities corp + <unk> soda co japan $ N million of eurobonds due nov. N N with equity-purchase warrants indicating a N N coupon at par via nomura international ltd + each $ N bond carries one warrant exercisable from nov. N N through oct. N N to buy company shares at an expected premium of N N N to the closing share price when terms are fixed oct. N + for bankers and regulators arizona is looking more like texas every day + on friday los angeles-based first interstate bancorp said it expects a net loss of $ N million for the third quarter of N because of hemorrhaging at its first interstate bank of arizona unit + first interstate said the unit <unk> by arizona 's worsening real-estate woes will have a $ N million loss for the quarter + first interstate took a huge $ N million provision for loan losses at the arizona bank + it charged off an estimated $ N million of arizona loans leaving the unit with a reserve for future losses of $ N million about N N of its $ N million of troubled loans and <unk> real estate + first interstate made the move under pressure from regulators + the action capped a <unk> of grim arizona banking news for the third quarter and <unk> signaled that arizona is challenging texas 's long <unk> as banking 's busiest <unk> + earlier last week valley national corp. the state 's largest locally owned banking company reported a $ N million loss and suspended its dividend + pinnacle west capital corp. which has been <unk> with regulators for months over what to do about pinnacle 's <unk> merabank thrift unit suspended its dividend and reported a N N plunge in third-quarter net income + security pacific corp. said third-quarter credit losses surged a third to $ N million mainly because of sour arizona real-estate loans + new york-based chase manhattan corp. took an $ N million <unk> charge + furthermore the regulatory <unk> behind first interstate 's loss suggests regulators have concluded that lenders ' reserves are far too low to absorb their future arizona losses and are forcing bankers to do something about it + <unk> from the office of the comptroller of the currency had been <unk> through first interstate 's real-estate portfolio since last month they first recommended that first interstate take a provision that was less than the eventual $ N million third-quarter hit + when first interstate balked arguing that the figure was too high regulators responded by raising their recommendation to $ N million + at that point first interstate decided it was the better part of <unk> not to negotiate further said one industry official close to the talks + thomas p. <unk> chief financial officer would n't comment about the details of the negotiations + he said the provision was n't forced upon us but the regulators made it very clear what they thought was an appropriate number + the tough regulatory stance <unk> large future losses especially at the state 's thrifts + at least six of arizona 's N savings and loan institutions have either been taken over by the government 's conservatorship program or are essentially insolvent they are sitting on enormous <unk> losses + for example western savings & loan association which is now in conservatorship had tangible <unk> minus liabilities of a negative $ N million at june N + it had a $ N million loss in the second quarter + yet it still held $ N million of <unk> real estate for which it maintains no reserves <unk> + it also had $ N million of <unk> loans its level of reserves against those was n't immediately available though it is believed to be small + the rapid deterioration of the arizona thrifts only adds to the <unk> cost of the government 's massive thrift bailout officially estimated at about $ N billion + together the six <unk> or essentially insolvent arizona thrifts have tangible capital of a negative $ N billion foreclosed property of $ N billion and <unk> loans of $ N billion + they have no reserves against the real estate and their reserves against the loans are <unk> compared with the levels of reserves banks are moving to set up + the thrifts had a combined loss of $ N million in the second quarter + other lenders have been recovering only N cents to N cents on the dollar on foreclosed arizona property if they can sell it at all + all this havoc is the result of one of the worst <unk> in arizona 's <unk> history compounded by some of the usual suspects in 1980s banking <unk> greed fraud and plain bad banking + in the late 1970s and early 1980s lenders and developers poured money into office buildings <unk> and massive <unk> of raw desert land confident that arizona 's population would grow at annual rates of N N to N N for years to come + now annual population growth is running at about N N a year some desert <unk> bought three years ago for $ N an <unk> are being sold at $ N an <unk> and phoenix has a seven-year supply of <unk> office space + it 's horrible to say but it 's unfortunate that earthquake was n't in phoenix it might have knocked out some of our empty buildings said <unk> jackson a prominent arizona businessman with interests in real estate banking and many other businesses + many arizona real-estate experts think the worst may be yet to come + ralph <unk> publisher of <unk> update newsletter said <unk> have climbed to about N a month just in <unk> county where phoenix is located + that 's up from about N a month in N and it 's accelerating so far this month <unk> are averaging about N a day + it 's <unk> mr. <unk> said + moreover mr. <unk> and others said residential real estate which had remained fairly strong through most of the downturn is beginning to <unk> more and more of the <unk> + and the generally <unk> condition of arizona 's lenders means there is little capital available in the state to shore up the economy and slow down the slide + it 's reasonable to say there is not a <unk> s&l in the state and the amount of viable bank capital is very low said mr. jackson + we 're going to see another big wave of failures and defaults between now and year-end + the only thing a lot of these lenders can get out of their mouth now is pay me in N days + first interstate had a $ N million loss in N 's third quarter mainly from <unk> and reserves connected with its texas operations + for the six months ended june N it reported net income of $ N million or $ N a share including $ N million from tax credits and accounting changes + the bank 's arizona unit holds about $ N billion of first interstate 's $ N billion of assets + mr. <unk> said the bank expects arizona real-estate prices which plummeted N N over the last year to fall another N N before stabilizing + some in arizona think that may be optimistic + first interstate said its operations outside of arizona achieved results as expected for the quarter but did n't specify the results + first interstate stock closed at $ N down N cents in composite trading friday on the new york stock exchange + since its unsuccessful bid for bankamerica corp. in N the bank has undertaken a major restructuring in an effort to cut costs and boost performance but many industry officials believe it may be <unk> for a takeover bid especially with interstate banking set to begin in california in N + mr. <unk> said the problems in arizona have only increased our resolve to continue to make our restructuring even more effective + separately standard & poor 's corp. lowered its ratings on valley national corp. 's senior debt to <unk> from <unk> affecting about $ N million of long-term debt + s&p also lowered ratings on unsecured deposits and issues backed by a letter of credit from the bank holding company 's principal unit valley national bank of arizona + the ratings service said the <unk> reflect the continued slide in the company 's financial condition + a spokesman for phoenix <unk> valley national said the concern will be able to withstand the current downturn in arizona real estate + commercial paper holders have reinvested their funds he said and consumer deposits have been up in the last few days + <unk> corp. said its scientists isolated a <unk> which may hold potential as a treatment for disruptions of the <unk> ranging from <unk> rejection to <unk> and <unk> + the <unk> is the mouse version of a protein called the <unk> <unk> + <unk> is a <unk> which directs the growth and function of white blood cells involved in the body 's immune response + the <unk> <unk> on the surface of such cells receives the <unk> 's message to rally the body 's defense + but in certain conditions such as <unk> diseases and <unk> and transplant rejection doctors would like to damp the immune response so such cells do n't touch off harmful <unk> reactions or cell destruction + a <unk> form of the <unk> might turn off a specific part of the immune response without general immune <unk> the company said + the <unk> <unk> is one of five such <unk> to be developed and tested by <unk> corp. a spinoff of <unk> through a proposed $ N million initial public offering + <unk> will contract with the spinoff to provide the research development and initial testing of the new agents + <unk> will have the option to buy back <unk> shares after five years + the following issues were recently filed with the securities and exchange commission + heller financial inc. an indirect subsidiary of fuji bank ltd. shelf offering of up to $ N billion debt securities and warrants + <unk> overseas ltd. proposed offering of five million common shares via smith barney & co. and <unk> <unk> & co + mci communications corp. shelf offering of up to $ N million of debt securities via merrill lynch capital markets drexel burnham lambert inc. goldman sachs & co. and salomon brothers inc + <unk> inc. offering of $ N million subordinated <unk> debentures via bear stearns & co. inc + union tank car co. offering of $ N million of equipment trust certificates via salomon brothers + conner peripherals inc. which has a <unk> on a key part used in many portable computers is on target to <unk> compaq computer corp. as the fastest-growing start-up manufacturing firm in u.s. business history + conner dominates the market for hard-disk drives used to store data in laptop computers + it said yesterday that net income for its third quarter soared N N to $ N million or N cents a share from $ N million or N cents a share in the year-ago period + its revenue totaled $ N million an increase of N N from $ N million a year ago + for the nine months the san jose calif.-based company said net income jumped N N to $ N million or N cents a share from $ N million or N cents a share + revenue nearly tripled to $ N million from $ N million + analysts expect conner 's earnings to reach roughly $ N million or $ N to $ N a share on sales of $ N million for N the company 's third full year in business + that 's a faster growth rate than reported by compaq which did n't post similar results until its fourth year in N + but compaq had achieved that level of sales faster than any previous manufacturing start-up + conner 's performance is closely tied to the <unk> demand for <unk> computers the computer industry 's fastest-growing segment + since its inception conner has both benefited from and helped make possible the rapid spread of portable computers by selling storage devices that consume five to N times less electricity than drives used in desktop machines + today conner controls an estimated N N of the hard-disk drive market for laptop computers + the company supplies drives to compaq and zenith data systems the top two u.s. manufacturers of <unk> and to toshiba corp. nec corp. and sharp corp. the leading japanese laptop makers + they 've had this field to themselves for over a year now and they 've been greatly <unk> said bob <unk> an analyst at <unk> inc. a market researcher in los <unk> calif + in the coming months however this is likely to change + next month seagate technology which is the dominant supplier of hard-disk drives for personal computers plans to introduce its first family of <unk> drives for <unk> computers + and the japanese are likely to keep close on conner 's heels + they are going to catch up said david <unk> an analyst with hambrecht & quist + both toshiba and nec already produce hard-disk drives and sony also is studying the field mr. <unk> said + but conner is n't standing still + yesterday the company introduced four products three of which are aimed at a hot new class of computers called <unk> + each of the three drives uses a mere N watts of power and one <unk> just N ounces + most of our competitors are announcing products based on our older products said <unk> conner chief executive officer and founder of the firm that bears his name + we continue to develop products faster than anyone else can + these new products could account for as much as N N of the company 's business in N mr. conner estimated + we 're not afraid of <unk> some of our old stuff to stay ahead of the competition he said + conner already is shipping its new drives + last week for instance compaq introduced its first notebook computer to <unk> reviews + conner is supplying hard-disk drives for the machine which <unk> only six pounds and fits in a <unk> + from its inception conner has targeted the market for <unk> machines building hard-disk drives that are smaller and use far less power than those offered by competitors such as seagate + the availability of these drives in turn boosted demand for laptop computers whose <unk> had been limited because of lack of storage + conner also makes hard-disk drives for desktop computers and is a major supplier to compaq which as of july owned N N of conner 's stock + sales to compaq represented N N of conner 's business in its third quarter compared with N N in the year-ago period + move over <unk> phone services a legal service with a N number has been launched in california + a newport beach law firm started the <unk> legal service called <unk> using mci communication corp. 's <unk> service + cane & associates <unk> its $ <unk> service as the cheapest legal hour you 'll ever find + though the service is available only in california <unk> founder michael cane says he plans to franchise it in other states + he says his aim is to reach people who are <unk> have no access to transportation ca n't find a lawyer to take their case or simply ca n't afford lawyers ' <unk> fees + mr. cane <unk> that he is n't using the telephone to lure clients to his <unk> + we will only deal with clients on the phone he says + we have no <unk> business + <unk> is apparently the only telephone service that offers the telephone equivalent of an office visit + local bar associations in some states have numbers that provide free <unk> messages explaining certain areas of the law + there also are N <unk> which refer people to lawyers usually personal-injury specialists for <unk> <unk> + when a caller reaches <unk> by dialing <unk> a <unk> <unk> the call to one of six attorneys + in an effort to determine whether a caller has reason to sue cane lawyers review documents and perform research if necessary with the help of three law <unk> and several support staffers + there is no charge for research only for time on the phone + if the matter requires further legal work or litigation mr. cane says his lawyers may refer the client to a law firm + but he says cane & associates does n't receive <unk> fees + so far says mr. cane most calls have involved <unk> problems tax problems <unk> and <unk> questions + the firm is getting about N calls a day and the average call lasts about N minutes + out of the $ N charge the law firm pockets about $ N + jury <unk> congressman in connection with wedtech corp. scandal + a federal court jury in new york found u.s. rep. robert garcia d. n.y and his wife <unk> lee garcia guilty of <unk> $ N from wedtech in return for official acts by the congressman + the jury also convicted them of <unk> in obtaining a $ N <unk> loan from a wedtech officer + the jury found them guilty of conspiracy in obtaining the payments some of which were <unk> as fees for consulting services from mrs. garcia + wedtech which became <unk> in <unk> cases that eventually led to its demise formerly was a <unk> south bronx n.y. defense contractor + edward <unk> little one of the assistant u.s. attorneys who prosecuted the case said the garcia trial is the last of the wedtech prosecutions + mr. little said more than N people have been convicted in the wedtech cases including former u.s. rep. mario <unk> d. n.y + lawyers for the <unk> said they plan to appeal + mr. garcia who represents new york 's <unk> congressional district which includes the bronx said he has n't decided whether he will resign + in the next few weeks i will be consulting with my political advisers and with the democratic leaders about the best way of preserving the interests of my constituents said mr. garcia N years old + mrs. garcia N formerly was a member of mr. garcia 's congressional staff + the <unk> were cleared of four other felony counts involving the <unk> of <unk> and <unk> + u.s. judge leonard b. sand set the <unk> ' sentencing for jan. N + five shea & gould partners are leaving to form a new firm + the new firm hutton <unk> <unk> <unk> <unk> & <unk> will be based in new york + the five partners who resigned from shea & gould late last week are tom hutton sam <unk> dean <unk> daniel <unk> and ernest <unk> + they will be joined by larry <unk> who resigned from the firm of <unk> <unk> & block + howard <unk> a new york <unk> who represents shea & gould said shea & gould understands they 're leaving because they wanted a different environment a smaller firm they would be principals of + mr. <unk> said the five who were n't on shea & gould 's management committee are leaving on good terms + he said shea & gould held a number of discussions with the five partners during the past few weeks to get them to stay but that the five were firmly committed to running their own firm + hutton <unk> will have a general corporate securities real-estate and litigation practice and a substantial practice serving the <unk> community + disciplinary proceedings against lawyers open to public in illinois + while investigations into lawyer misconduct will remain secret the public will be notified once a formal complaint is filed against an attorney + the actual disciplinary hearings will be public + in addition illinois attorneys will lose the right to sue clients who file <unk> complaints against them + <unk> will be added to the inquiry panels that look into allegations of misconduct + illinois joins N other states that allow public participation in <unk> proceedings and N states that open disciplinary hearings to the public according to the american bar association + one <unk> critic of the changes chicago lawyer warren <unk> says <unk> should n't be on the inquiry panels because they are unlikely to appreciate the <unk> of <unk> relationships + in addition he says publishing the names of lawyers who are facing charges <unk> subjects them to public <unk> + nevertheless mr. <unk> anticipates no legal action to reverse the illinois supreme court 's decision to institute the changes + there 's no constitutional right involved in the rule change he says + you do n't have a right to practice + you only have a privilege to practice + drexel burnham lambert inc. agreed to pay a $ N fine to delaware the <unk> state to settle with drexel in the wake of the firm 's guilty plea to federal insider-trading charges + drexel does n't have a delaware office but the new york firm has been negotiating settlements that would allow it to operate freely nationwide despite its record as an admitted <unk> + the firm has said it expects to pay $ N million overall to settle with states + drexel pleaded guilty in september to six felony counts of securities and mail fraud it also made a $ N million civil settlement with the securities and exchange commission + philip morris cos. whose benson & hedges cigarette brand has been losing market share has asked at least one other agency to try its hand at creative work for the big account which has been at wells rich greene inc. since N + executives close to philip morris said that the tobacco and food giant has asked backer spielvogel bates worldwide inc. a unit of saatchi & saatchi co. and possibly others to work on creative ideas for the account + several executives said another potential <unk> is wpp group 's ogilvy & mather agency which works on some other philip morris products + both philip morris and backer spielvogel declined to comment + a spokeswoman for ogilvy & mather said the agency does n't comment on idle speculation + also mentioned as a <unk> was <unk> advertising but the company denied it was participating + the loss of the cigarette account would be a severe blow to wells rich + benson & hedges has been one of its most <unk> campaigns as well as one of its largest clients + the account billed almost $ N million last year according to leading national advertisers + but philip morris has scaled back ad spending on the brand over the past year industry executives said and it now bills about $ N million to $ N million + industry executives said philip morris had asked the other agencies to create campaigns in a bid to stop the brand 's slipping market share + according to john maxwell an analyst at wheat first securities richmond va. benson & hedges has slipped from N N of the cigarette market in N to just N N after the second quarter of this year + the brand is no. N overall in the cigarette business mr. maxwell said + the slip has come despite <unk> ads created by wells rich including one <unk> a young man <unk> only in <unk> <unk> <unk> a <unk> <unk> + that ad generated so much publicity that a trade magazine launched a contest for its readers to guess who the guy was and what he was doing + wells rich first <unk> the benson & hedges brand more than N years ago with ads portraying among other things an <unk> door closing on a passenger 's cigarette + the brand early on achieved an upscale appeal a <unk> that some analysts believe is partly responsible for its <unk> performance + philip morris trying to revive the benson & hedges franchise put the account up for review in N + wells rich greene however in an effort directed by mary wells lawrence emerged the victor of the review and retained the business + kenneth <unk> wells rich 's chairman did n't return phone calls seeking comment + while wells rich recently picked up hertz corp. 's $ N million to $ N million account it has lost a number of big accounts this year including the $ N million to $ N million <unk> canada dry and <unk> accounts the $ N million procter & gamble co sure <unk> account and the $ N million <unk> <unk> business + its victories include more than $ N million in sheraton corp. business and an <unk> from dun & bradstreet worth $ N million to $ N million + this city is <unk> for gridlock today as hundreds of thousands of commuters avoid travel routes <unk> by last week 's earthquake + estimates of damage in the <unk> san francisco bay area <unk> $ N billion excluding the cost of <unk> the region 's transportation system + the bay bridge the main artery into san francisco from the east will be closed for at least several weeks + part of the bridge collapsed in the quake which registered N on the richter scale + the bridge normally carries N commuters a day + also most of the <unk> connecting the city to its main link to the south the N freeway have been closed for repairs + the bay area rapid transit system which runs subway trains beneath the bay is <unk> for a doubling of its daily regular <unk> to N + bart has increased service to N hours a day in preparation for the <unk> + most unusual will be <unk> commuters from the east bay towns of oakland and berkeley + for the first time in N years ferry service has been restored between the east bay and san francisco + the red and white fleet which operates regular <unk> ferry service to and from <unk> county and tourist tours of the bay is offering east bay commuters a chance to ride the waves for the price of $ N <unk> + that tariff is too stiff for some financial district wage <unk> + i 'll stay with bart said one secretary <unk> her fears about using the <unk> tube + officials expect the golden gate bridge to be <unk> with an extra load of commuters including east bay residents making a long <unk> + we 're anticipating quite a traffic crunch said one official + about N people typically travel over the golden gate bridge during commute hours + about N vehicles cross during a 24-hour period + meetings canceled by apple computer inc. 's european sales force and by other groups raised the specter of empty hotel rooms and restaurants + it also raised <unk> of the city 's tourism <unk> + other cities are calling groups booked here for tours and conferences and not to be <unk> stealing our <unk> list said scott <unk> a spokesman for mayor art agnos + city officials stuck by their estimate of $ N billion in damage to the <unk> city + the other five bay area counties have increased their total damage estimates to $ N billion + all estimates exclude highway repair which could exceed $ N billion + among the expensive <unk> are <unk> of <unk> freeway in san francisco that were closed because of <unk> damage + the most worrisome stretch is N miles of <unk> highway known as the <unk> freeway + until it was closed tuesday it had provided the <unk> series of <unk> for commuters from the bay bridge heading into the financial district + engineers say it will take at least eight months to repair the <unk> structure + as part of the quake recovery effort the city building department has surveyed about N buildings including all of the financial district 's <unk> + the preliminary conclusion from a survey of N downtown <unk> is that we were <unk> lucky said lawrence <unk> san francisco 's chief building inspector + while many of these buildings sustained heavy damage little of that involved major structural damage + city building codes require construction that can resist <unk> + in england martin <unk> a spokesman for lloyd 's of london said the insurance market has n't yet been able to estimate the total potential claims from the disaster + the extent of the claims wo n't be known for some time mr. <unk> said + on friday during a visit to california to survey quake damage president bush promised to meet the federal government 's obligation to assist relief efforts + california officials plan to ask congress for $ N billion or more of federal aid in the form of grants and <unk> loans + the state has a $ N billion reserve and is expected to add $ N billion to that fund in the next year + some of that money will be available for highway repair and special emergency aid but members of the legislature are also <unk> over a temporary state gasoline tax to raise money for earthquake relief + however state initiatives restrict the ability of the legislature to raise such taxes unless the voters approve in a statewide <unk> + g. christian hill and ken wells contributed to this article + bond corp holdings ltd. posted a loss for fiscal N of N million australian dollars us$ N million the largest in australian corporate history + that loss compared with a year-earlier profit of a$ N million + in preliminary <unk> results reported friday bond corp. also posted an operating loss of a$ N million for the year ended june N compared with operating profit of a$ N million a year earlier + operating revenue rose N N to a$ N billion from a$ N billion + but the net interest bill jumped N N to a$ N million from a$ N million + bond corp. has interests in brewing media and communications natural resources and property + much of bond corp. 's losses stemmed from one-time write-downs of the value of some of bond corp. 's assets and those of its units + the results included a a$ N million write-off of future income-tax benefits and a provision for a loss of a$ N million on the sale of a stake of about N N in <unk> plc + however bond corp. said the tax benefits remain available and might be used later + earnings before interest and tax from brewing <unk> N N to a$ N million from a$ N million + the company said the general financial performance of its u.s. brewing operations g. <unk> brewing co. was disappointing and this has been reflected in the results + bond corp. 's shares closed friday before news of the results at N australian cents a share up one australian cent + the staggering losses cap a tumultuous year for alan bond and his flagship bond corp + only a year ago the chairman of bond corp. who controls about N N of the company appeared to be building a war <unk> to attack some big companies + now bond corp. has agreed to sell at least half its australian brewing assets + it has sold billions of dollars of other assets and has more on the block + but in a tv interview sunday mr. bond said we 've taken a big loss + we 've taken it on the <unk> + but we 're out there and we 're going to stay in business + bond corp. signaled it will focus on building its domestic and international media and communications businesses + it said it will look at opportunities in brewing property and energy resources to the extent consistent with the dominant objective of <unk> <unk> ratios + the result will ultimately be a very different group in size and structure bond corp. directors said in a statement + some analysts contend the total <unk> should have been much greater and bond corp. 's auditors cited a list of several assets and deals about which there is uncertainty regarding the current value and potential impact on the firm + bond corp. said the acknowledged losses mean net asset backing is in the red to the tune of N australian cents a share vs. positive asset backing of a$ N a share a year ago + still the directors said having fully considered all aspects of the company 's state of affairs and future cash flows the directors confirm absolutely that the company is <unk> + indeed in a note to the results directors said if the true worth of some of the group 's assets were taken into account instead of using book values the negative net asset backing a share would turn into a substantial positive one + the <unk> supermarket went out of business last may + the reason was not high interest rates or labor costs + nor was there a shortage of customers in the area the residential <unk> section of northern manhattan + the business closed when the owner was murdered by <unk> + the owner was israel ortiz a <unk> entrepreneur and father of two + in his first year of operating the store he bought for $ N mr. ortiz was robbed at least twice at <unk> + the first time he was shot in the hand as he <unk> the <unk> outside + the second time he identified two <unk> who were arrested and charged + two weeks later perhaps in <unk> mr. ortiz was shot three times in the back during what police classified as a third <unk> attempt + that was his reward for working until N p.m. seven days a week to cover his $ N a month rent + for providing what his customers described as very personal and helpful service + for creating a focus for neighborhood life + israel ortiz is only one of the thousands of entrepreneurs and their employees who will be injured or killed by crime this year + the u.s. bureau of justice statistics reports that almost N N of all <unk> workers suffer injuries from crime each year almost twice the national average and about four times the rate for teachers truck drivers medical workers and <unk> salespeople + only a few other <unk> have higher reported rates of criminal injury such as police <unk> and taxi drivers + yet these figures show only the most visible part of the problem + recent data from new york city provide more of the picture + while by no means the highest crime community in the country new york is a prime example of a city where crime <unk> small-business development + a survey of small businesses there was conducted this spring by <unk> a policy research organization + it gave N businesses a <unk> and <unk> N responses + the survey found that over a three-year period N N of the firms said employees or owners had been robbed on their way to or from work or while on the job + <unk> percent reported their customers being robbed + crime was the reason that N N reported difficulty recruiting personnel and that N N said they were considering moving + more than one-third of the responding businesses said they suffer from drug dealing and <unk> near their premises + in brooklyn and the bronx one out of four commercial firms is <unk> each year + industrial neighborhoods fare even worse with <unk> rates twice the <unk> average + crime is clearly more deadly to <unk> <unk> than to big businesses + two decades ago the small business administration reported yale prof. albert <unk> 's landmark study of crime against N small businesses drawn from national irs records + he found that monetary crime losses as a proportion of gross receipts were N times higher for small businesses than for large ones + the new york study 's companies averaged N employees their annual crime losses averaged about $ N with an additional $ N annual cost in security enough money to hire at least one more worker + the costs of crime may also be enough to destroy a struggling business + whatever the monetary crime losses they may not be nearly as important to entrepreneurs as the risk of personal injury + after repeated gun <unk> some entrepreneurs may give up a business out of fear for their lives + one washington couple recently sold their liquor store after N years in business that included four <unk> deaths and N <unk> or <unk> on the premises + these findings illustrate the vicious cycle that national institute of justice director james k. stewart calls crime causing poverty + <unk> neighborhoods offer relatively few employment opportunities contributing to the poverty of local residents + small neighborhood businesses could provide more jobs if crime were not so harmful to creating and maintaining those businesses + this may help explain why small businesses create N N of all jobs nationally but only N N of jobs in a <unk> city like new york + bigger business can often better afford to minimize the cost of crime + the new york study found that the cost of security measures in firms with fewer than five employees was almost $ N per worker compared with one-third that amount for firms with more than N employees + the shift of retailing to large shopping centers has created even greater economies of scale for providing <unk> business environments + private security guards and <unk> police can <unk> the law of trespass to regulate access to these <unk> places + since N in fact revenues of the N largest guard companies primarily serving such big businesses have increased by almost N N + few small neighborhood businesses however can afford such protection even in collaboration with other local merchants + in the neighborhoods with the highest crime rates small business generally relies on the public police force for protection + this creates several problems + one is that there are not enough police to satisfy small businesses + the number one proposal for reducing crime in the new york survey was to put more police on foot or <unk> <unk> suggested by more than two-thirds of the respondents + only N N supported private security <unk> funded by the merchants themselves + a second problem is the persistent frustration of false <unk> which can make urban police less than enthusiastic about responding to calls from small businesses + only half the new york small businesses surveyed for their part are satisfied with the police response they receive + some cities including new york have <unk> with special tax districts for commercial areas that provide additional <unk> funded by local businesses + but this raises added cost barriers to urban <unk> + another solution cities might consider is giving special priority to police <unk> of small-business areas + for cities losing business to suburban shopping centers it may be a <unk> business investment to help keep those jobs and sales taxes within city limits + increased <unk> of business zones makes sense because urban crime is heavily concentrated in such hot spots of <unk> <unk> + with national institute of justice support the minneapolis police and the crime control institute are currently testing the effects of such a strategy <unk> its <unk> value with traditional random <unk> + small-business <unk> would be an especially helpful <unk> whenever a small-business person is scheduled to testify against a <unk> suspect + while no guarantee an increased police presence might even deter further attacks + it might even have saved the life and business of israel ortiz + mr. sherman is a professor of <unk> at the university of maryland and president of the crime control institute in washington <unk> + enfield corp. said in toronto that it hopes to raise N million canadian dollars us$ N million through a rights offering to shareholders + under the offer shareholders can purchase one enfield share at c$ N for each five shares held + in toronto stock exchange trading friday enfield closed at c$ N down N cents + the holding company said the rights offering should reduce its c$ N million debt to more <unk> levels before dec. N and allow it to finance future investments with equity capital + at last report enfield had about N million shares outstanding + former u.n. ambassador <unk> <unk> in a <unk> capital gang discussion oct. N of house action on federal <unk> insurance + i think this repeal was kind of a <unk> action as a matter of fact + they will have to <unk> this issue and they 'll have to <unk> it before long + diversification pays + that 's a fundamental lesson for investors but its truth was demonstrated once again in the performance of mutual funds during and after the stock market 's friday-the-13th plunge + stock funds like the market as a whole generally dropped more than N N in the week through last thursday according to figures compiled by lipper analytical services inc + that reflects the huge drop a week ago friday last monday 's rebound and the <unk> and <unk> that followed + but several other types of funds <unk> investors from the worst of the market 's slide + funds that invest internationally were the <unk> stock and fixed-income funds + more than ever people should realize they should have a diversified portfolio said <unk> <unk> a senior vice president of vanguard group + that means stocks bonds money market instruments and real estate + one week 's performance should n't be the basis for any investment decision + but the latest mutual fund performance figures do show what can happen when the going gets rough + you want to know how a fund did when the market got <unk> said kurt brouwer an investment adviser with brouwer & <unk> in san francisco + it 's like <unk> the tires of a car + what you want to know is when the road 's rough when there 's snow and ice how 's this car going to perform + general equity funds fell an average of N N in the week ended thursday compared with a N N slide for the standard & poor 's 500-stock index + but lipper analytical 's figures show that there were a number of ways investors could have <unk> themselves from the stock market 's gyrations + <unk> funds for instance which invest in companies that mine and process the precious metal posted an average decline of N N + flexible portfolio funds which <unk> investments among stocks bonds and money-market instruments and other investments declined at about half the rate of stock funds an average drop of N N according to lipper + global allocation funds take the <unk> concept one step further by investing at least N N of their portfolios outside the u.s. + this gives them the added benefits of international diversification including a foreign-exchange boost during periods like the past week when the dollar declines against other major currencies + with all that going for them global flexible portfolio funds declined only N N in the week through last thursday + but while the merits of diversification <unk> through when times are tough there 's also a price to pay a diversified portfolio always <unk> an <unk> portfolio during those times when the investment in the <unk> portfolio is truly hot + and friday the 13th notwithstanding stocks have been this year 's hot investment + thus even including the latest week the average general stock fund has soared more than N N so far this year the lipper analytical figures show + by comparison global asset allocation funds have turned in an average total return of about N N while domestic flexible portfolios are up about N N + fixed-income funds have returned N N while gold funds which tend to be volatile have risen just N N on average + that 's the problem with trying to hedge too much said mr. brouwer + you do n't make any real money + over the last N years for example mr. brouwer says an investor putting $ N a year in the s&p N would have made nearly twice as much than if it were invested in treasury bills + some equity funds did better than others in the week that began on friday the 13th + the $ N million <unk> fund for instance was the seventh top performing fund for the week with a N N return + its return so far this year has been a credible N N + the fund 's strategy is to sell when a stock <unk> N N over its cost + by the time the market plummeted N days ago <unk> was N N in cash said robert <unk> president and portfolio manager + last monday he started buying the high-quality growth companies that people were throwing away at discount prices + among mr. <unk> 's picks <unk> systems reebok international ltd. and digital microwave corp + the fund 's cash position is now about N N which mr. <unk> calls still bearish + among the big stock funds dreyfus fund with more than $ N billion in assets had a decline of just N N for the week and a return of N N for the year + howard stein chairman of dreyfus corp. said the fund was about half invested in government bonds on oct. N and about N N in cash + in a downward market bonds act better he said + we still think there 's a lot of <unk> in this market + we believe interest rates will continue to trend lower and the economy will slow around the world + many of the funds that did best in the last week are heavily invested overseas giving them the benefit of foreign currency <unk> when the dollar is weak + from its high point on thursday oct. N to where it traded late in new york a week later the dollar fell N N against the west german mark N N against the british pound and N N against the japanese yen + three international cash portfolios funds which invest almost exclusively in bonds and money-market instruments overseas were among the four <unk> funds in the latest week + because the funds ' investments are <unk> in foreign currencies their value expressed in dollars goes up when those currencies rise against the dollar + but when the dollar rises against major foreign currencies as it did for much of this year the dollar value of these funds declines + all three funds posted negative returns for the year to date + of the funds that fared the worst in the <unk> N week two are heavily invested in airlines stocks which led the market slide following problems with financing for the ual corp buy-out plan + reflecting airline takeover activity however both the fidelity select air transportation portfolio and the national aviation & technology fund posted <unk> returns for the the year to date N N for the fidelity air transportation fund and a <unk> N N for national aviation & technology + the small drop in equity funds in general in the latest week may not necessarily be a good sign said a. michael lipper president of lipper analytical + noting that equity funds are up nearly N N from their post-crash low on dec. N N he said that what happened last week may not be enough of an adjustment + there 's either more to come or an extremely long period of <unk> + but investors do n't seem to think so + several big mutual fund groups said last week that cash flows into stock funds were heavier than usual after heavy outflows on the 13th + vanguard group said it had a more than $ N million net <unk> into its stock funds last week + there certainly has n't been a panic reaction said steven <unk> a vice president at t. rowe price associates + people showed some staying power and in fact interest in buying equities + source lipper analytical services inc + \* not counting dividends + \*\* with dividends reinvested + sources lipper analytical services inc. standard & poor 's corp + guardian royal exchange assurance plc a major british composite insurer said it is taking a stake in nationwide <unk> building society 's estate agency business as part of a plan to create a range of commercial <unk> in the u.k. and europe + officials declined to disclose the value of the transaction or the exact stake that <unk> will hold in nationwide <unk> estate agents + but the companies said that nationwide <unk> estate agents will market <unk> life insurance pension and investment products through its more than N retail outlets in the <unk> + besides the marketing agreement <unk> said nationwide <unk> has agreed to develop life insurance products with the composite insurer + sitting at the bar of the four seasons restaurant architect william mcdonough seems <unk> to the glamorous <unk> and the elegant setting + he is <unk> the <unk> <unk> above the <unk> <unk> + look how much air is moving around he says + the <unk> here is great + you may be hearing more about the <unk> mr. mcdonough and his <unk> with clean air + after years of relative <unk> he is starting to attract notice for the ecological as well as the <unk> quality of his architecture + mr. mcdonough believes that the <unk> of the planet depends on such <unk> as opening windows to cut <unk> air pollution <unk> down carpets instead of using toxic <unk> and avoiding <unk> which comes from endangered rain <unk> + he has put some of his <unk> ideas into practice with his design of the <unk> <unk> <unk> restaurant <unk> <unk> <unk> architecture magazine called it and his remodeling of paul stuart the madison avenue clothing store + he has designed furniture and homes as well as commercial and office space + he is now designing a broadway stage set for a show by the band kid <unk> and the <unk> + what really <unk> his <unk> though is <unk> architecture + now the question is is poland ready for it + mr. mcdonough is about to tackle his biggest clean-air challenge yet the proposed warsaw trade center in poland the first such center in eastern europe + the project has already acquired a certain new york <unk> + bloomingdale 's plans to sell a <unk> <unk> model of the center during the holidays + some of the sales proceeds will go to the design industries foundation for aids + a <unk> topped with a <unk> of the center will be auctioned at an aids benefit at sotheby 's in december + if mr. mcdonough 's plans get executed as much of the polish center as possible will be made from aluminum steel and glass recycled from warsaw 's abundant rubble + a <unk> <unk> <unk> will stand <unk> N stories of commercial space + <unk> <unk> will make the <unk> <unk> + the windows will open + the carpets wo n't be <unk> down and walls will be coated with <unk> <unk> + to the extent that the $ N million budget will allow it mr. mcdonough will rely on solid wood rather than <unk> or <unk> board to limit the <unk> of <unk> + if mr. mcdonough has his way the poles will compensate for the trade center 's emissions of carbon dioxide a prime suspect in the global atmospheric warming many scientists fear + the poles would plant a <unk> forest somewhere in the country at a cost of $ N with the center 's developer footing the bill + the news has n't exactly moved others in mr. mcdonough 's profession to become architectural <unk> <unk> + all architects want to be aware of the ecological consequences of their work says john <unk> whose new york firm is designing the redevelopment of times square but we ca n't all carry it to that extreme + karen <unk> senior associate at michael <unk> 's architecture firm in princeton n.j. says we 're really at the <unk> of what the construction industry can and will do readily + mr. mcdonough <unk> i 'm asking people to broaden their <unk> + the son of a seagram 's executive who was <unk> in many countries around the world mr. mcdonough was born in tokyo and attended N schools in places ranging from hong kong to <unk> heights ohio before entering <unk> college + he earned a master 's degree in architecture from yale + his interest in the natural environment dates from his youth + he and his father still spend time each summer <unk> for <unk> in <unk> + living in hong kong he says made him sensitive to the limits on food power and water supplies + at his first school in the u.s. he was thought a little strange for <unk> off open water <unk> and <unk> his <unk> to take only brief <unk> + he and a <unk> <unk> established a company that restored three <unk> power plants in vermont + at yale he designed one of the first <unk> houses to be built in ireland + mr. mcdonough 's first professional project fully to reflect his environmental <unk> was his N design for the headquarters of the environmental defense fund in new york + the offices took N square feet of a building with <unk> <unk> and big <unk> windows + since the 1970s energy crisis some efforts to <unk> energy by <unk> buildings have had an <unk> side effect high <unk> pollution + to reduce it at the fund 's building workers <unk> <unk> instead of <unk> on the floors in the executive director 's office + <unk> rather than a synthetic material lies under the <unk> carpets and the desks are of wood and <unk> instead of plastic + the budget was only $ N + <unk> with <unk> means mr. mcdonough says + the fund 's lawyers work in an <unk> <unk> of <unk> trees + economists and administrators sit along a <unk> with street <unk> and <unk> trees + in offices <unk> <unk> <unk> <unk> + offices with outside windows have inside windows too to let in more real <unk> + we proved a healthy office does n't cost more says <unk> <unk> executive director of the fund + it really looks beautiful and is very light says ann <unk> a free-lance writer who has visited the office for lunch meetings + but she says i guess i did n't really notice the trees + maybe they were hidden by all the people + neither the <unk> <unk> nor the paul stuart <unk> reflects much of mr. mcdonough 's environmental concern + the restaurant was <unk> as a <unk> <unk> <unk> + it makes extensive use of <unk> steel silver and aluminum that sets off black <unk> table tops and a gray <unk> with <unk> floors + to more than replace the wood from two english <unk> used for <unk> at paul stuart however mr. mcdonough and friends planted N <unk> around the country + the ambitious warsaw project still <unk> approval by city officials + its developer is a polish american <unk> <unk> + he had worked with mr. mcdonough on an earlier project and recruited him as architect for the trade center + the center will provide space for computer hardware and facsimile and other telecommunications equipment not readily accessible in poland now for a growing number of <unk> doing business in eastern europe + mr. mcdonough thinks of the center as the <unk> tower of warsaw and a symbol of the <unk> of poland + if any nation can use environmentally benign architecture it is poland + <unk> <unk> vice president of world resources institute in washington d.c. says that perhaps a quarter of poland 's soil is too <unk> for safe <unk> because of air pollution + the pollution is also killing <unk> and destroying buildings that date back to the middle ages + the future of the forest remains uncertain + mr. <unk> 's company <unk> ltd. has agreed to set aside the money to plant and maintain it but discussions are still going on over where to place it and how to ensure that it will be maintained + after all mr. <unk> says in poland there are n't too many people worried about the environment + they 're more worried about bread on the table + pittston co. 's third-quarter net income plunged N N reflecting the impact of a prolonged and bitter labor strike at its coal operations + net sank to $ N million or eight cents a share including $ N or two cents a share reflecting a tax-loss carry-forward + in the year-ago quarter net totaled $ N million or N cents a share including $ N million or N cents a share reflecting a tax-loss carry-forward + revenue slipped N N to $ N million from $ N million + pittston also owns brink 's inc. the security service and burlington air express the air-freight concern + in addition to expected losses tied to the labor strike the coal group has spent almost $ N million since the strike began for security the company said + as a result the group 's third-quarter loss widened to $ N million from the second quarter 's $ N million + pittston continues to hire replacement workers the company said + burlington 's operating profit grew to $ N million from $ N million a year earlier pittston said + while the tone of domestic and international air-freight markets remains sound seasonal factors are likely to <unk> burlington air from matching third-quarter results in the fourth quarter pittston said + brink 's operating profit was about flat with the year-earlier period reflecting continued pricing and cost pressures + in new york stock exchange composite trading friday pittston closed at $ N a share down N cents + does n't anybody here want to win this mayor 's race + as they <unk> and <unk> toward election day two weeks from tomorrow both democrat david dinkins and republican rudolph giuliani are in trouble + mr. dinkins the manhattan borough president can afford more <unk> and <unk> because he holds a comfortable <unk> lead in most of the <unk> polls + but in the past N days he has taken a series of body <unk> to his pride and his reputation that could <unk> affect his ability to govern this tumultuous city should he become new york 's first black mayor + ordinarily a <unk> opponent would find a way to capitalize on the other side 's <unk> + but mr. giuliani a <unk> prosecutor has had difficulty switching from his <unk> <unk> mode to a political stance that suggests he might know something about running this big troubled city + and now at the crucial moment he 's running out of money + this is the nation 's biggest city and traditionally its mayor is the nation 's best-known urban politician + democrats hoped that mr. dinkins could become a highly visible national leader + republicans figured that in mr. giuliani the nation 's best-known prosecutor they had a chance for a huge upset in the heart of democratic territory and that they would pick up a new political star + but it has n't worked out that way + dinkins is a decent but sloppy guy says david <unk> veteran campaign consultant here who has always worked for mayor edward koch defeated by mr. dinkins in the sept. N democratic primary + the alternative giuliani is <unk> + i guess we 'll <unk> go ahead and do it vote for dinkins says richard wade a politically active professor who supported richard <unk> an <unk> in the democratic primary + there 's nothing on the other side + we 're picking up steam insists roger <unk> mr. giuliani 's media consultant whose last big campaign helped put george bush in the white house + he adds it just has n't gotten down to the engine room yet + but the steam may never reach the engine room + for just as mr. giuliani <unk> on to an issue that has mr. dinkins reeling his campaign desperately needs cash to keep mr. <unk> 's commercials on the air beyond wednesday or thursday + to help out this week the white house is <unk> chief of staff john <unk> and three cabinet members hud 's jack kemp transportation 's samuel skinner and treasury 's nicholas brady according to peter powers the giuliani campaign manager + for republicans who began this campaign with such high hopes all of this is deeply frustrating + historically new york is almost always in trouble + but the trouble it faces now under democratic rule seems bigger and more <unk> than anything it has faced in the past + this year the city faces a budget deficit that could become even bigger next year + and hardly surprising many residents trying to cope with the city 's other problems are constantly on edge one ethnic group <unk> with another + people were n't so happy in the 1930s says thomas <unk> another local professor and the <unk> of the legendary <unk> <unk> the city 's fusion mayor who built a coalition mr. giuliani hopes to <unk> + but at least back then they did n't generally direct their anger at each other + the <unk> mr. dinkins an <unk> has served as the city clerk and as manhattan borough president a job with limited executive responsibilities + i <unk> you to come up with one major <unk> of david dinkins says mr. giuliani + he defeated the contentious mr. koch in the democratic primary partly because he seemed to offer hope he could <unk> the city 's racial and ethnic <unk> + his <unk> campaign is almost <unk> all <unk> pictures and <unk> words + his theme is unity <unk> <unk> bringing new york together again + both candidates are negotiating about holding debates but mr. dinkins is widely seen as the major obstacle for scheduling them + the 45-year-old mr. giuliani has run a negative campaign to pick up votes <unk> to mr. dinkins + he 's got to get dinkins 's <unk> up says lee <unk> director of the <unk> college institute of public opinion + but our polls show voters do n't like the attack stuff + why even N N of the republican vote is going to dinkins + it 's <unk> politics says john <unk> mr. dinkins 's issues director insisting there is a strong <unk> <unk> to the giuliani effort + for the giuliani forces it 's a <unk> + on the one hand mr. giuliani wants to cut into mr. dinkins 's credibility + on the other he seeks to convince voters he 's the new <unk> <unk> <unk> <unk> and ready to lead new york out of the mess it 's in + it has n't helped that he 's <unk> on abortion and <unk> rights sought the support of both the liberal and conservative parties he won the liberal endorsement and that he turned to <unk> <unk> mason for help with jewish voters + mr. mason left the campaign after telling reporters mr. dinkins is a <unk> with a <unk> + <unk> is a <unk> <unk> word for a black person + mr. dinkins concedes nothing in his ability to <unk> and <unk> + he can match <unk> mason with his own robert <unk> carson an angry street <unk> who was convicted of <unk> in N + the dinkins campaign paid mr. carson close to $ N to get out the vote on <unk> day + paper work on how it was spent is incomplete + mr. carson has been charged with being <unk> + asked about that the other day he replied <unk> + i 'm <unk> + more troubling for mr. dinkins is his record in personal accounting + it began in N when he was being considered for deputy mayor and a routine check <unk> the extraordinary fact that he had n't paid his income tax for the previous four years + i was always going to do it tomorrow he explained at the time + and now he 's <unk> trying to explain an arrangement in which he sold stock in inner city broadcasting co. headed by his old friend and <unk> <unk> sutton to his son david dinkins jr. for $ N + he had valued the shares at more than $ N million two years earlier + he says he sold the stock to avoid <unk> problems in his role as a voting member of the city 's board of estimate + he says his son has n't paid for the shares + it looks like serious tax evasion says mr. <unk> the giuliani media consultant + it follows the same pattern as his tax returns + he <unk> to talk about it until after he gets caught + he simply has n't explained why something worth a million dollars ended up worth $ N two years later says mr. powers the giuliani campaign manager + it 's <unk> for him to suggest it 's the difference between <unk> value of the shares and their market value + so far though no one not even former u.s. attorney giuliani has been able to pinpoint just what law mr. dinkins has broken or just what tax he has <unk> + the crime goes to character says ron <unk> a consultant to the giuliani campaign + it 's serious stuff + he <unk> and ducks + he 's had a history of <unk> and this is the latest chapter + it makes people think maybe this guy is n't so <unk> clean after all says mr. <unk> mayor koch 's media consultant + the result may turn out to be a lot closer than people think + the <unk> scandal surrounding the N collapse of banco ambrosiano was <unk> by the arrest last week of rome businessman <unk> <unk> on fraud charges + rome <unk> accuse mr. <unk> and several other people of trying to <unk> N billion lire $ N from the vatican in return for documents contained in the <unk> of <unk> <unk> the ambrosiano chairman found <unk> under london 's <unk> 's bridge shortly before the bank 's collapse + banco ambrosiano which was italy 's largest private-sector bank collapsed in N with $ N billion of debts + most of the money was lent to a series of shell companies in panama and <unk> that were owned directly or indirectly by the vatican bank + the vatican which denies any wrongdoing paid $ N million to the milan bank 's creditors as a goodwill <unk> in N + italian news reports said mr. <unk> and a <unk> obtained N billion lire in checks from a vatican official <unk> <unk> + italian papers speculated the <unk> contained papers either <unk> the vatican bank from blame in the scandal or showing that the bank known as the <unk> per <unk> <unk> di <unk> <unk> funds to east bloc groups such as solidarity in poland + neither mr. <unk> mr. <unk> nor vatican officials could be reached for comment over the weekend + this business trust company said its board elected <unk> e. burke a consultant to drexel burnham lambert group inc. as chief executive officer a new post and as president + mr. burke succeeds richard d. <unk> who will remain as a consultant to the company + both men were unavailable to comment + the company also named michael e. <unk> a director and a major shareholder to fill the vacant seat of chairman + britain 's serious fraud office said it will investigate the circumstances surrounding alleged <unk> contracts at ferranti international signal plc 's international signal & control unit + the investigation which will be <unk> with one already under way in the u.s. follows the discovery of what ferranti has called a serious fraud involving its u.s. subsidiary + international signal & control lancaster pa. a <unk> manufacturer was bought by ferranti in N for # N million $ N million + ferranti has said that it would be forced to write off # N million against the <unk> contracts reducing its net asset value by more than half + the serious fraud office a division of london 's metropolitan police responsible for investigating financial crimes said its work would take in allegations of fraud prior to surrounding and subsequent to the merger + ferranti said that it <unk> the investigation and that it will cooperate fully + <unk> <unk> ferranti 's chairman has said he hoped to pursue legal action against those responsible + the british defense electronics group has said it will sell # N million in assets and may seek a merger to strengthen itself in the wake of its troubles + chicago businessmen <unk> m. lee and peter <unk> signed a new agreement to purchase the denver <unk> basketball team but not as principal owners + on saturday the partners said the team would be purchased for $ N million by a new group including comsat video enterprises inc. a unit of communications satellite corp. based here + comsat video will pay $ N million for a N N interest with messrs. lee and <unk> putting up $ N million for a N N stake in the team + under terms of the sale <unk> owner <unk> <unk> could receive up to $ N million in additional payments from the franchise 's future earnings + messrs. lee and <unk> last july announced a deal that would have made them the first black principal owners of a major professional sports franchise + but the deal fell apart last week for lack of financing + comsat video is headed by robert <unk> who resigned his no. N executive post with turner broadcasting system inc. just two weeks ago to take the comsat position + comsat video which distributes <unk> programs to hotel rooms plans to add <unk> games to their offerings as mr. turner did successfully with his atlanta <unk> and <unk> sports teams + messrs. lee and <unk> will manage the <unk> ' <unk> affairs + royal business group inc. said it filed suit in federal court here charging realist inc. and its directors with violating federal securities laws by engaging in a scheme to prevent royal from acquiring realist + royal which makes and distributes business forms owns an N N stake in realist + royal contends that realist failed to disclose material information including realist 's negotiations to acquire <unk> laser <unk> ag to stockholders prior to realist 's june N annual meeting + royal 's suit contends that the <unk> acquisition was designed to <unk> management and thwart royal 's offer + royal withdrew its offer to buy realist a maker of optical and electronic products based in <unk> falls wis. for $ N a share in july after realist disclosed the <unk> purchase + the suit seeks in excess of $ N in damages + a realist official said the company had n't yet received the full complaint and would n't have a response until it had an opportunity to review it + winnebago industries inc. battered by a <unk> slowdown in recreational vehicle industry sales reported a widened fourth-quarter loss and slashed its dividend in half + the forest city iowa maker of motor homes said it had a loss of $ N million or N cents a share in the quarter ended aug. N + a year earlier the company had a deficit of $ N million or six cents a share + the cut in the dividend to N cents a share <unk> from N cents would indicate to me they do n't see the problems being fixed real quick said frank <unk> an analyst at <unk> <unk> inc. in minneapolis + indeed winnebago said it started several promotional programs to spur retail sales in the fall and winter + the year was already shaping up as a difficult one for the recreational vehicle industry which makes products such as motor homes travel <unk> <unk> <unk> and van <unk> + with the exception of van <unk> the industry has seen a decline from N 's robust sales + but the rate of the decline <unk> in august with unit sales to dealers for the month down N N from a year earlier according to the recreation vehicle industry association + at winnebago sales for the quarter fell N N to $ N million from $ N million a year earlier + the company attributed the decline to consumers ' concern over interest rates and gas prices two key expenses for <unk> buyers + it 's a <unk> discretionary purchase said robert <unk> who follows the industry for merrill lynch & co + so when there 's talk and concern about the economy it 's not <unk> for a portion of the buying public to defer purchases + mr. <unk> expects industry <unk> sales for all of N to fall about N N from N when sales of N units were the highest since N + and he said the weakness could continue in the first half of next year + but he said the industry has a good decade ahead particularly if aging baby boomers fulfill the industry 's dreams by buying <unk> + winnebago was hit especially hard in the latest downturn because unit sales in its bread-and-butter motor home business tumbled N N industrywide in august and N N in the first eight months of the year + the company said it also suffered in the quarter from incentive programs losses from <unk> a motor home line and costs of developing a new commercial vehicle among other things + the news sent winnebago stock falling N cents to $ N in new york stock exchange composite trading a 52-week low + the dividend cut will prove most costly for john k. hanson winnebago 's founder and chairman + based on his control of about N N of winnebago 's N million shares his annual dividend income would be cut to about $ N million from $ N million + for the year winnebago had a loss of $ N million or N cents a share following profit of $ N million or N cents a share a year earlier + sales rose N N to $ N million from $ N million + bullish bond market sentiment is on the rise again + as the government prepares to release the next batch of economic reports the consensus among economists and money managers is that the news will be negative + and that they say will be good for bonds + recent data have indicated somewhat weaker economic activity said elliott <unk> director of economic research at donaldson lufkin & jenrette securities + mr. <unk> is advising clients that the near-term direction of bond prices is likely to remain upward + analysts insist that even without help from a shaky stock market which provided a temporary boost for bonds during the oct. N stock market plunge bond prices will start to climb on the prospects that the federal reserve will allow interest rates to move lower in the coming weeks + that would be <unk> to fixed-income investors many of whom were badly burned in the third quarter by incorrectly assuming that the fed would ease + investors rushed to buy bonds during the summer as prices soared on speculation that interest rates would continue to fall + but when it became clear that rates had stabilized and that the fed 's <unk> policy was on hold bond yields jumped and prices tumbled + long-term bonds have performed <unk> this year + for example a group of long-term treasury bonds tracked by merrill lynch & co. produced a total return of N N in the first quarter N N in the second quarter and N N in the third quarter + total return is price changes plus interest income + now some investment analysts insist that the economic climate has turned cold and gloomy and they are urging clients to buy bonds before the rally begins + among other things economists note that consumer spending is slowing corporate profit margins are being squeezed business confidence is slipping and construction and manufacturing industries are depressed + at the same time last week 's consumer price index showed that inflation is <unk> + add it all up and it means that the fed has a little <unk> to ease its credit policy stance without the risk of <unk> inflation said norman robertson chief economist at mellon bank corp. pittsburgh + i think we will see a federal funds rate of close to N N N in the next two weeks and N N by year end + the federal funds rate which banks charge each other on overnight loans is considered an early signal of changes in the fed 's credit policy + economists generally agree that the rate was lowered by the fed from around N N where it had been since july to about N N N in early october on the heels of a weak employment report + although the rate briefly drifted even lower following the stock market sell-off that occurred oct. N it ended friday at about N N N + james <unk> chief fixed-income strategist at merrill lynch is touting <unk> securities which he says should benefit more quickly than longer-term bonds as interest rates fall + given our forecast for lower rates purchases made now should prove quite rewarding before year end he said + mr. <unk> also likes long-term investment-grade corporate bonds and long-term treasurys + he says these bonds should appreciate in value as some investors reacting to the recent turmoil in the stock and high-yield junk bond markets seek safer securities + if the tennessee valley authority sale is any guide there appears to be good demand for <unk> long-term paper from both domestic and overseas accounts he said + tva in its first public debt offering in N years sold $ N billion of long-term and <unk> securities last week + strong investor demand prompted the utility to boost the size of the issue from $ N billion + tva which operates one of the nation 's largest electric power systems is a corporation owned by the federal government + but <unk> investors to buy bonds may be especially tough this week when the u.s. government will auction more than $ N billion of new securities + today the treasury department will sell $ N billion of three-month and six-month bills at the regular weekly auction + tomorrow the treasury will sell $ N billion of two-year notes + resolution funding corp. known as refcorp a division of a new government agency created to bail out the nation 's troubled savings and loan associations will hold its first bond auction wednesday when it will sell $ N billion of 30-year bonds + all of this comes ahead of the government 's big quarterly refunding of the federal debt which takes place sometime in november + so far investors have n't shown much appetite for refcorp 's initial bond offering + roger early a portfolio manager at federated investors corp. said that yields on the so-called bailout bonds are n't high enough to attract his attention + why should i bother with something that 's an unknown for a very small pickup in yield he said + i 'm not going to jump on them the first day they come out + he seems to be typical of many professional money managers + when the size of the refcorp offering was announced last week and when-issued trading activity began the bailout bonds were yielding about N percentage point more than the treasury 's benchmark 30-year bond + on friday the yield was quoted at about N percentage point higher than the benchmark bond an indication of weak demand + some economists believe that yields on all treasury securities may rise this week as the market struggles to absorb the new supply + but once the new securities are <unk> they expect investors to focus on the weak economic data + the supply is not a <unk> to the market said samuel <unk> chief financial economist at kleinwort benson government securities inc + if one thinks that rates are going down you do n't care how much supply is coming + friday 's market activity + most bond prices fell on concerns about this week 's new supply and disappointment that stock prices did n't stage a sharp decline + junk bond prices moved higher however + in early trading treasury bonds were higher on expectations that a surge in buying among japanese investors would continue + also providing support to treasurys was hope that the stock market might see declines because of the expiration of some stock-index futures and options on indexes and individual stocks + those hopes were dashed when the stock market put in a relatively quiet performance + treasury bonds ended with losses of as much as N point or about $ N for each $ N face amount + the benchmark 30-year bond which traded as high as N N during the day ended at N N + the yield on the benchmark bond rose slightly to N N from N N + in the corporate bond market traders said the new-issue market for junk bonds is likely to pick up following chicago & north western acquisition corp. 's $ N million junk bond offering friday + today for example underwriters at morgan stanley & co. said they expect to price a $ N million 12-year senior subordinated debenture offering by imo industries inc + traders expect the issue to be priced to yield N N + shearson lehman hutton inc. said that a $ N million senior subordinated discount debenture issue by <unk> <unk> drugs is expected by the end of the month + however despite the big new-issue calendar many junk bond investors and analysts are skeptical the deals will get done + there are about a dozen more deals coming said michael <unk> director of fixed-income research at kemper financial services inc + if they had this much trouble with chicago & north western they are going to have an awful time with the rest + last week underwriters were forced to postpone three junk bond deals because of recent weakness in the market + and pressure by big investors forced donaldson lufkin & jenrette securities corp. to <unk> chicago & north western 's $ N million junk bond offering + after hours of negotiating that stretched late into thursday night underwriters priced the 12-year issue of <unk> senior subordinated debentures at par to yield N N higher than the N N that had been expected + the coupon on the issue will be reset in one year at a rate that will give the issue a market value of N + however the maximum coupon rate on the issue when it is reset is N N + debenture holders also will receive the equivalent of N N of the common stock in chicago & north western 's parent company + the coupon was raised to induce some of the big players on the <unk> to come in said a spokesman for donaldson + we put a price on the deal that the market required to get it done + the spokesman said the issue was sold out and met with strong interest abroad particularly from japanese investors + in the secondary or resale market junk bonds closed N point higher while investment-grade corporate bonds fell N to N point + sotheby 's inc. 's gamble in the <unk> business appears to have paid off + the new york arm of the london-based auction house auctioned off the estate of john t. dorrance jr. the campbell 's soup co. heir for $ N million last week a record for a <unk> art collection + that total was below the $ N million the auction house estimated the collection might sell for but was enough to ensure that an unprecedented financial arrangement sotheby 's had made with the dorrance family proved profitable to the auction house + sotheby 's provided the dorrance family a guarantee of at least $ N million and as much as $ N million to obtain the collection people familiar with the transaction said thus taking a greater than usual financial interest in the property to be sold + the dorrance estate auctioned off in a series of sales held over four days included <unk> furniture and paintings + an <unk> <unk> auctioned last wednesday <unk> $ N million a world record for the artist + in addition a handful of paintings from the dorrance collection remain to be sold at sotheby 's annual old masters paintings auction in january + the better business bureau of san diego and the state attorney general 's office entered into a settlement stemming from an investigation of <unk> business <unk> published by an outside firm better book inc + the settlement stems from charges that better book now <unk> made <unk> in selling advertising for the <unk> and <unk> in the bureau from N to N + without admitting any <unk> the bureau agreed to several conditions if it again contracts with an outside firm to publish its <unk> + the conditions include not <unk> how many <unk> will be distributed and agreeing to make refunds to <unk> advertisers if any <unk> are involved in the sale + the attorney general 's investigation was sparked by lawsuits and charges by angry california <unk> that they were <unk> in a <unk> <unk> project contracted by better book + the <unk> led to the closing of the los angeles better business bureau in late N + mccaw cellular communications inc. said it obtained firm financing commitments from three major banks in regard to its offer for N N of lin broadcasting corp + morgan guaranty trust <unk> bank and <unk> national bank an affiliate of <unk> financial corp. jointly committed $ N billion of financing subject to certain conditions mccaw said + further mccaw said the banks expressed confidence that the balance of the $ N billion bank facility will be committed within the next several weeks by a syndicate of foreign and domestic banks + morgan <unk> and <unk> are leading that syndicate + mccaw is offering to buy N million shares of lin for $ N each in cash which would result in mccaw owning N N of the <unk> and broadcasting concern + the offer is in limbo however because lin has agreed to merge its <unk> businesses with bellsouth corp + in national over-the-counter trading friday lin shares rose N cents to close at $ N + beijing lawmakers have called for <unk> to be built to house <unk> and for severe punishment including the death sentence for anyone who <unk> or <unk> women into <unk> + the official <unk> news agency said the municipal government was discussing a draft bill to give the capital its first <unk> statutes + it quoted <unk> <unk> deputy director of the beijing public security bureau as saying that there were many more people involved in <unk> now than in N when there were about N cases + foreigners involved in <unk> will be <unk> according to the law and those with <unk> <unk> diseases will be expelled from the country according to the regulations + the communists nearly succeeded in eliminating <unk> after taking over in N but the practice has returned in recent years with the country 's increased exposure to the outside world + japan agreed to enforce a decision by an international wildlife conference to ban all trade in ivory a spokesman for the ministry of international trade and industry said + earlier japan had said it might file a <unk> against the ivory ban decided by ballot at the <unk> united nations conference on international trade in endangered <unk> in switzerland last week + the japanese use N N of the world 's ivory + italy should close the <unk> tower of <unk> because it 's a danger to tourists <unk> experts said + in some places the <unk> is so damaged it shows signs of breaking off scientists and technicians said in a report to public works minister giovanni <unk> + each year nearly a million people pay about $ N to make the <unk> climb up N steps to the top of the <unk> marble tower + east germany pledged to reduce alcohol consumption by boosting production of soft drinks and fruit <unk> + trade and supply minister <unk> <unk> said in a letter published in the youth daily <unk> <unk> that the rise in alcohol consumption in east germany had been halted but to reduce it further he said production and supply of other <unk> including fruit <unk> should be stepped up + he added that shops will have to continue reducing their stocks of liquor and avoid <unk> them too <unk> in the window + hong kong has built a <unk> center for illegal <unk> from china because china has refused for the past two weeks to accept them back + the center close to hong kong 's border with china will be ready today and will be able to house N <unk> police deputy director peter <unk> said + the dispute started when china angry that hong kong had allowed dissident <unk> <unk> <unk> to <unk> to the u.s. halted the usual daily transfer of illegal <unk> caught in this british colony which <unk> to beijing 's control in N + <unk> under the glare of newly installed television lights british members of parliament demanded a halt to the experimental <unk> of debates + a group of senior conservative legislators complaining the house of commons was like a <unk> demanded that the experiment be stopped unless the intensity of the lights is reduced + one conservative <unk> david <unk> said i should have a wonderful <unk> by christmas + debates are due to be broadcast nationally starting nov. N in a six-month experiment + a majority of japanese banks are said to be wary of making new loans to mexico under the brady plan because they 're uncertain the mexican economy will remain stable + instead many small and medium-sized banks and some larger ones are likely to take one of the other two options open to them under the plan japanese banking officials said + the plan proposed by u.s. secretary of state nicholas brady calls for banks either to make new loans or to reduce the principle on existing loans or to cut the interest rate on those existing loans + the officials said that most japanese banks prefer the losses they 'd suffer in either of the latter options to the risk of new lending + but an official at a long-term credit bank explained that since some larger banks have already taken loss provisions for loans to other third world nations further write-offs could be viewed as <unk> + they ca n't take the hit to their earnings he said + as a result the official said they may be forced into a <unk> situation in which they make risky loans that they could have to write off later + a poll in <unk> south korea put margaret thatcher first on a list of <unk> foreign leaders + the british prime minister was the only woman singled out by respondents who put soviet president mikhail gorbachev in second place + the soviet newspaper <unk> reported that <unk> mouse will appear in a <unk> comic book to be issued four times a year by soviet publisher <unk> i sport and <unk> 's <unk> group + the comic book will cost about $ N + ekco group inc. nashua n.h. expects to report that net income in the third quarter ended oct. N fell N N to N N from $ N million or N cents a share a year earlier + robert stein president and chief executive officer attributed the expected decline partly to the effects of a <unk> strike last month at the company 's <unk> ohio <unk> facility + <unk> orders in early september also played a role he said in an interview + but mr. stein said he is reasonably confident that earnings for the full year will exceed the $ N million or N cents a share in N + that would require fourth-quarter net of more than about N cents to N cents a share assuming that mr. stein 's third-quarter estimate proves accurate + in the year-earlier fourth quarter the company had profit of $ N million or N cents a share + third-quarter revenue is expected to be $ N million to $ N million up from $ N million a year earlier according to neil gordon treasurer + the year-earlier periods do n't reflect results of the company 's <unk> corp. unit acquired last january but include some canadian operations that were sold at the end of N + august through october traditionally is the busiest season for the <unk> business as many retailers use the goods as autumn promotional items + mr. stein said some retailers perhaps anxious about <unk> inventories appear to have held back on orders in september but have been ordering more heavily in october + mr. stein said <unk> is marginally profitable but has n't performed as well as expected + <unk> 's <unk> <unk> and other <unk> products are doing very well and its plastic <unk> products are poised for growth he said + but the unit 's third segment wildlife <unk> is suffering from a depressed market and ekco is seeking to sell that segment he said + mr. stein said he expects profit to be higher in N than in N reflecting a number of measures taken since the acquisition of ekco <unk> in late N + prior to acquiring the <unk> business the company was known as <unk> corp. <unk> had been a maker of computer printers but mr. stein and other officers decided to sell that business after japanese competitors grabbed a dominant share of the market + mr. stein said tighter operating controls have enabled ekco to reduce inventory levels N N to N N improve <unk> delivery of orders to about N N from around N N and to lower the number of labor hours required to produce a unit + by moving the design of new products in-house instead of contracting out the work the company also has been able to come up with designs that can be manufactured more efficiently he said + in addition to those measures the company spent heavily earlier this year to install displays at its customers ' retail outlets a strategy that mr. stein said has helped bolster awareness of the company 's brands + ekco 's <unk> operation makes kitchen tools and <unk> as well as <unk> at factories in the u.s. and canada + the main issue in the strike at the ohio facility was health-care benefits mr. stein said + the strike ended <unk> + ekco continues to seek further acquisitions in the consumer-products industry mr. stein said + he indicated that ekco may be interested in acquiring another company with revenue in the range of $ N million to $ N million partly because mass <unk> increasingly want to rely on larger and fewer suppliers + after several years of booming business with china foreign traders are bracing for the biggest slump in a decade + the <unk> of <unk> measures starting last october already had begun to <unk> when the massacre in <unk> square on june N and subsequent events <unk> the belt far tighter + foreign lending has been virtually suspended since then <unk> liquidity and <unk> many projects + and beijing has pulled back on domestic loans and subsidies leaving many domestic buyers and <unk> plants strapped for cash + <unk> far east ltd. a swiss concern that sells chemicals to <unk> and soap factories in china <unk> the problems + last year 's <unk> <unk> up the working capital of chinese factories + the company 's sales <unk> during N 's first half + the june killings magnified the problems + in canton <unk> 's representative office received no orders in june + at first it attributed the slump to temporary business disruptions but when no orders were <unk> in august and september manager donald <unk> became convinced that business would be bad for many months + things have grown worse since june N mr. <unk> says + he predicts that sales will drop between N N and N N from last year 's $ N million + the consumer-products and <unk> sectors are bearing the brunt of china 's <unk> measures and foreign companies such as <unk> that deal with those industries are being hit the hardest + but in general all <unk> companies are feeling the <unk> + the import pie will shrink says john <unk> first vice president of the american chamber of commerce in hong kong and a china trade specialist + on the down side sales could fall as much as N N for some companies on the upper side sales will be flat + china 's foreign trade has gone in cycles during the past decade + the last time that traders experienced a trough was during N when beijing imposed tough measures to curb imports and <unk> foreign exchange + the current trough is expected to be much deeper because beijing has cut off domestic funds from factories for the first time to slow inflation + in addition the suspension of loans and export credits from foreign governments and institutions following the june killings have been a big setback + the freeze on new lending is dealing the single biggest blow to trading says raymond <unk> china manager for <unk> ag a west german <unk> company + import growth from the year-earlier months slowed to N N in july and N N in august compared with an average growth rate of N N in the first half + in the first eight months of N imports grew N N to $ N billion down slightly from a growth rate of N N a year earlier + the picture for china 's exports is just as bleak mainly because of the domestic credit squeeze + exports in the first eight months grew only N N to $ N billion compared with a growth rate of N N a year earlier according to chinese customs figures + the threat to china 's balance of payments is further <unk> by the plunge in its foreign-exchange reserves excluding gold holdings + the reserves dropped for the first time in recent years to $ N billion in june from $ N billion in april + the trend has prompted beijing to intensify efforts to curb imports + in recent weeks china 's leaders have <unk> trading in <unk> and scores of chemical products and commodities + the ministry of foreign economic relations and trade set up a special bureau last month to monitor the issue of import and export licenses + beijing 's periodic <unk> on imports have taught many trading companies that the best way to get through the drought is by helping china export + for example <unk> <unk> corp. one of the biggest japanese trading houses now buys almost twice as many goods from china as it sells to that country + three years ago the ratio was reversed + but the strategy is n't helping much this time + both sectors of imports and exports look just as bad says <unk> <unk> general manager of <unk> <unk> 's canton office + he expects the company 's trading business to drop as much as N N this year + for a short time after june N it appeared that the trade picture would remain fairly bright + many foreign trading offices in hong kong were <unk> with <unk> and telephone calls from chinese trade officials urging them not to <unk> ties + even the bank of china which normally took weeks to process letters of credit was settling the letters at record speed to <unk> rumors about the bank 's financial health + but when foreign traders tried to do business they discovered that the eagerness of chinese trade officials was just a <unk> + the suspension of foreign loans has weakened the buying power of china 's national trading companies which are among the country 's biggest <unk> + business is n't any better on the <unk> or municipal level foreign traders say + shanghai investment & trust co. known as <unk> is the city 's main financier for trading business + <unk> had <unk> tapped the japanese bond market for funds but it ca n't do that any longer + foreign traders say the company is strapped for cash + it has difficulties paying its foreign debts says a hong kong executive who is familiar with <unk> 's business + how can it make available funds for purchases + foreign traders also say many of china 's big <unk> projects have been canceled or postponed because of the squeeze on domestic and foreign credit + albert lee a veteran trader who specializes in machinery sales estimates that as many as N N of projects that had obtained approval to proceed have been canceled in recent months + there are virtually no new projects and that means no new business for us he says + even when new lending <unk> foreign exchange would still be tight because beijing will likely try to rein in foreign borrowing which has grown between N N and N N in the past few years + and foreign creditors are likely to be more cautious about extending new loans because china is <unk> a peak repayment period as many loans start falling due in the next two to five years + another reason for the intensity of the trade problems is that beijing has extended the current <unk> on imports beyond the usual target of consumer products to include steel chemical <unk> and plastics + these have been among the country 's leading imports particularly last year when there were shortages that led many traders to buy heavily and pay <unk> + but the shortages also spawned rampant speculation and <unk> prices + to stem speculation beijing imposed ceiling prices that went into effect earlier this year + traders who had bought the goods at prices above the ceiling do n't want to take a loss on <unk> and are holding onto their stock + the resulting <unk> has depressed the market + but beijing ca n't cut back on such essential imports as raw materials for too long without <unk> the country 's export business + mr. <unk> the china trade expert estimates that as much as N N of <unk> 's exports is made up of processed imported raw materials + oil spill case shows liability fund flaws + an <unk> <unk> dispute stemming from an alaskan oil spill has helped spur a drive for tougher federal laws to protect victims of such <unk> + the class-action suit <unk> <unk> of the <unk> pipeline liability fund which gets its money from oil companies using the pipeline and <unk> those <unk> by oil <unk> + on july N N the tanker <unk> <unk> bay struck a rock and <unk> almost N gallons of oil into the cook <unk> + commercial <unk> and fish processors filed suit in federal court in a claim that has <unk> to more than $ N million + defendants include british petroleum america <unk> corp. the <unk> and the pipeline liability fund + the fund was created by the <unk> pipeline act which provides that the owner or operator of a vessel involved in an oil spill must pay the first $ N million in damages + the fund is required to pay claims up to an additional $ N million + the fund 's purpose is to provide quick and adequate relief + but the <unk> bay case the fund 's first test shows how easily the fund can be undermined + <unk> corp. is <unk> liability + it claims the coast guard failed to chart the rock and refuses to pay damages + that means the fund is n't obligated to pay anything at least so far + the oil pollution act scheduled to come up for a vote in congress this fall would provide that if claimants are n't paid within N days of a spill the liability fund would compensate them and seek <unk> from the owner or operator of the vessel says a spokesman for rep. george miller d. calif. a sponsor of the bill + the spokesman says the <unk> in the statute is the worst kind of <unk> + many law school <unk> find classes never end + recent law school graduates are starting jobs with law firms this fall and heading back to class + bar associations and consultants are offering more programs to teach associates all they need to know about law but did n't learn in law school + law school teaches wonderful theory but it does n't teach the <unk> and <unk> of practical <unk> says <unk> <unk> head of a new york county lawyers ' association committee that sponsors such a course + in the past associates learned the <unk> from senior lawyers who acted as <unk> + but these days large firms hire as many as N new associates a year and it 's impossible to personally train everyone says joel <unk> of <unk> inc. a consulting firm that runs training classes + the <unk> course enables students to <unk> up on negotiation skills by role playing in <unk> deals + students also are taught to return clients ' phone calls immediately and to treat the support staff with respect + many law firms sponsor their own programs + at the baltimore firm of <unk> & green new corporate and banking associates are required to <unk> in a <unk> course + partners <unk> on how to form corporations draft agreements and defend clients against unwanted tender offers + now clients know that new associates have had some practical training before working on their cases says james j. <unk> a partner at the firm + los angeles creates a courthouse for kids + the children of los angeles will soon have their own $ N million courthouse + the building which will handle child abuse custody and foster care cases will be less formal less threatening and just basically less grim than most <unk> says <unk> edelman chairman of the los angeles county board of supervisors + designs call for an <unk> structure with a <unk> in the center + there will be recreation and movie rooms + <unk> will be able to listen to music with <unk> + study halls complete with reference materials will be available + and there will be a <unk> 's station and rooms for children to meet with social workers + the building 's N <unk> will be smaller says <unk> <unk> a court administrator + the bench will be lower so the judge seems less <unk> and walls will be painted in bright colors and covered with <unk> + cases in los angeles county involving dependent children are usually heard in the criminal courts building + we need to get the kids away from the criminals into a less <unk> environment says mr. edelman + about N children in los angeles county are under court supervision mr. edelman says and an average of N new children are added each month + the courthouse to be built in <unk> park is expected to open in the spring of N + law firm management can be quite rewarding + it pays to follow a management career path even at law firms + that 's the conclusion of a recent study of large law firms conducted by altman & weil inc. an <unk> pa. law firm consultant + its survey of N firms each with N to N lawyers shows that managing partners earned an average of $ N in compensation and cash benefits in the firms ' N fiscal years + managing partners who responded to the survey typically spend over half their time <unk> their firms ' day-to-day operations and just a little more than a third of their time practicing law + partners in the survey who devote most of their time to practicing law earned an average of about $ N + chairman jamie whitten d. miss of the house appropriations committee proposed a $ N billion emergency funding package to assist california 's recovery from last week 's earthquake and extend further aid to east coast victims of hurricane hugo + the sweeping measure <unk> $ N million in small-business loans $ N billion in <unk> funds and $ N billion divided between general emergency assistance and a reserve to be available to president bush to meet unanticipated costs from the two disasters + the funds would be attached to a <unk> spending bill required to keep most of the government operating past wednesday + the measure is scheduled to be taken up by the appropriations committee today + the panel is expected to add provisions <unk> restrictions on the use of federal highway funds and may also shift money within the package to bolster the share for the small business administration + we will support it we will <unk> him and we will <unk> it where appropriate said rep. <unk> fazio d. calif + dubbed the dire emergency supplemental to meet the needs of natural disasters of national significance the measure is vintage whitten in <unk> federal responsibility and in <unk> budget <unk> + such other amounts will be made available subsequently as required the legislation reads and the new obligations shall not be a charge against the budget act <unk> or other <unk> + moody 's investors service inc. said it lowered the ratings of some $ N million of pinnacle debt because of accelerating deficiency in liquidity which it said was <unk> by pinnacle 's elimination of dividend payments + henry <unk> jr. pinnacle executive vice president said the action wo n't really have any effect on us + we are n't selling bonds right now and i do n't think it will affect the value of our existing bonds + the rating agency said it lowered the ratings on $ N million of the holding company 's convertible subordinated <unk> to <unk> from <unk> + moody 's said it also lowered the ratings of $ N million of pinnacle 's merabank thrift unit long-term deposits to <unk> from b-2 and on its subordinated debt to ca from <unk> + merabank 's rating for short-term deposits remains not prime + securities of merabank were placed under review last may and will remain under review for downgrade the agency said + first the somewhat affected <unk> of the 1960s + then the <unk> <unk> of the 1970s and 1980s + what now + to judge from novels that mirror the contemporary scene we 're back in the age of anxiety + where <unk> <unk> <unk> to <unk> middle-class life and ambitious <unk> hoped to leave it far behind as they scaled the upper reaches of success it now seems that so many people feel they 're slipping between the cracks that middle-class life is viewed with <unk> or outright <unk> + <unk> <unk> 's third novel limited partnerships north point press N pages $ N is a <unk> funny and <unk> look at the way love relationships are affected by the pressures of money or more specifically the lack of it + nora worth and malcolm <unk> N and N respectively live together in a <unk> in a <unk> philadelphia neighborhood + malcolm a former <unk> turned architect has just seen his first big chance at a lucrative commission turn to dust with the arrest of his <unk> <unk> client a <unk> real estate developer + nora who still has artistic aspirations knows she is lucky to be working as a food <unk> <unk> <unk> <unk> <unk> cold drinks and other <unk> to look as <unk> as possible in front of the camera + after all she reasons there were <unk> with <unk> and degrees from cooking schools in france who would kill for her job + but nora and malcolm feel trapped + they seem to be having the worst of both <unk> artistic work with none of art 's integrity and no control over the finished product <unk> without fun or profit + it 's a <unk> <unk> world in which bright still <unk> people are engaged in a glossy version of day labor doing free-lance <unk> work that brings little satisfaction or security but that they know they should be <unk> to do + uncertainty dogs every aspect of their lives + malcolm faces bankruptcy and an irs audit but nora finds an extra $ N in her bank account suddenly increasing her available funds some <unk> + while she is wondering whether to live it up and do something even more dramatic say get married her life is further complicated by the <unk> of an old <unk> david a film critic and actor who always seems to be just on the brink of <unk> + in novels of an earlier vintage david would have represented excitement and danger malcolm <unk> middle-class security + the irony in this novel is that neither man represents a safe middle-class haven nora 's decision is between emotional excitement and emotional security with no firm economic base anywhere + the characters <unk> a world in which it seems increasingly difficult to find a middle way between the <unk> of success and failure wealth and poverty + in making malcolm and nora such <unk> representative <unk> of their class and generation ms. <unk> has somewhat neglected the task of making them <unk> individual characters + the humor of the story owes much to the fact that no hearts even the characters ' own are likely to <unk> for the plight of <unk> <unk> + but readers may well feel the <unk> of recognition + in any case the <unk> middle classes are n't the only ones in trouble or whose troubles provide material for <unk> + <unk> money contemporary books N pages $ N a novel by consultant and business analyst joseph r. <unk> tells the story of an innovative <unk> widely respected computer manufacturing company called <unk> as it faces a hostile takeover attempt by <unk> a much smaller corporation that is so <unk> managed as to constitute a standing joke in the business world + <unk> dynamic scott thatcher founder and head of <unk> initially finds the takeover threat <unk> + but as he and his skilled team soon discover they 're up against two factors they had n't counted on first a business climate in which a failing company with few assets and many debts can borrow against the assets of the successful company it hopes to acquire in order to finance the takeover second that standing behind <unk> is a <unk> consortium of much bigger <unk> and <unk> foreign interests <unk> providing the money and muscle for the deal + mr. <unk> manages to invest this tale of financial wars with the <unk> characters and <unk> action of a <unk> novel + and like a spy or mystery story this novel has strong elements of <unk> as the good and evil forces battle it out + mr. <unk> <unk> these moral <unk> with the broad <unk> strokes of a <unk> that occasionally <unk> to the <unk> of <unk> <unk> + <unk> <unk> of <unk> californians <unk> <unk> and <unk> union leaders undermine the force of the author 's perceptions + yet the <unk> of the <unk> also can be effective in a book like this if the head of <unk> were not portrayed as an utterly <unk> <unk> <unk> we would not much care whether his schemes were defeated and would not be so diverted in the process + ms. rubin is a free-lance writer based in los angeles + high-definition television promises to be the tv of tomorrow so it is a natural multibillion-dollar market + although major u.s. manufacturers have all but <unk> the main segment of that future business to japan not everyone here is ready to give up + a handful of small u.s. companies are struggling to develop the technology to build the screens for the thin high-quality <unk> that are expected to hang on living room walls by the end of the 1990s + with only small help from the government these start-up concerns are trying to compete with the <unk> of the japanese consumer electronics industry which enjoy considerable backing from the japanese government + <unk> technology inc. of <unk> ohio aims to use a new form of <unk> technology to put <unk> images on a tv display that is N inches in <unk> but only a few inches thick + <unk> systems inc. of <unk> ore. the largest of these firms with $ N million in annual revenue has similar plans + it already has had success in <unk> another promising technology <unk> for high-definition television + two other firms <unk> <unk> systems inc. of <unk> mich. and <unk> corp. of pittsburgh are developing a <unk> of the <unk> screens called <unk> liquid crystal displays + the new technologies are intended to retire the <unk> tube which accounts for most of the bulk of the conventional tv set + replacing the <unk> tube with a large thin screen is the key to the creation of a high-definition television or hdtv which is expected to become a $ N billion business world-wide within a decade + large u.s. companies are interested in other segments of the hdtv business such as <unk> and broadcast equipment + but except for zenith electronics corp. and international business machines corp. which is <unk> with toshiba on computer displays they are poorly positioned to exploit advances in large panels + general electric co. recently sold off its interests in <unk> displays to <unk> of france + we found the market not developing as we thought it would a ge spokesman says + the small u.s. firms are <unk> because of their strong positions in patents and because the prize is still there to be seized + no one yet has shown the ability to manufacture these panels at commercial costs says <unk> <unk> the president of <unk> <unk> + he says he thinks his company is just a few years from doing that + the bush administration hearing <unk> advice about what its role in hdtv should be is n't doing much for now + the only material support it is extending to the struggling u.s. industry is $ N million in <unk> from the pentagon 's defense advanced research projects agency + the <unk> funds are a <unk> compared with what japan and other prospective competitors are spending + the commerce department estimates that japanese government and industry spending on hdtv research is already over $ N billion + unless it gets more help the u.s. industry wo n't have a chance says peter <unk> <unk> 's executive vice president + thus far almost all of the basic technology relating to high-definition television has come from u.s. laboratories + but peter <unk> <unk> 's president says japanese companies are poised to <unk> the technology and put it to commercial use just as they did with earlier u.s. <unk> in color television and video recording + in the 1970s mr. <unk> helped develop the first display panels based on <unk> liquid crystals at westinghouse electric corp. 's research labs in pittsburgh + the panels are like <unk> semiconductors surfaced with a million or more picture elements each contributing to the color and tone of a tv image + in N however westinghouse abandoned the project along with its stake in advanced television + mr. <unk> left the company to find other backers + he has a claim to the right to <unk> the westinghouse patents but he contends that those patents are being infringed by a number of japanese producers + most american investors have just given up mr. <unk> says + they are n't prepared to compete in an area where the japanese want to enter + many critics question the industry 's need for federal support the pentagon justifies its help on <unk> grounds + we do n't see a domestic source for some of our hdtv requirements and that 's a source of concern says michael kelly director of <unk> 's defense manufacturing office + so <unk> is trying to keep the industry interested in developing large display panels by <unk> out research funds + hdtv already has some military applications such as creating realistic flight <unk> and <unk> information to combat <unk> + the navy is ordering displays for its <unk> <unk> and the army wants smaller versions for its abrams battle tanks + the commerce department also is trying to encourage hdtv because of the benefits that could spin off to the semiconductor and computer industries + it is n't just <unk> television argues jack clifford director of the department 's office of <unk> and instrumentation + the industry will create industrial products such as displays for work stations and medical diagnostic equipment before it acquires a mass consumer market + although some hdtv advocates are calling for other forms of aid such as antitrust relief for research <unk> the small firms simply would prefer more <unk> funds + each claims to <unk> the right technology and wants just a bit more money to make it commercial + they also want u.s. trade policy to reflect the pentagon and commerce department 's concern over their future + they all are strongly opposed to a petition from several japanese tv manufacturers including <unk> hitachi and toshiba to exempt portable color tvs with <unk> displays from <unk> duties that the u.s. imposes on the larger japanese color tvs + and they want the u.s. to help them sell overseas + <unk> president james <unk> says he has to pay tariffs as high as N N to sell his display panels in japan and south korea while panels from those countries enter the u.s. duty-free + this is n't a technology issue but an attitude issue he says + we just have n't learned what it takes to compete + burmah oil plc a british independent oil and <unk> marketing concern said shv holdings n.v. has built up a N N stake in the company + the holding of N million shares is up from a N N stake that burmah announced shv held as of last monday + shv of the netherlands which last year merged its north sea oil and gas operations with those of <unk> group plc and which owns N N of <unk> was identified as a possible suitor for burmah + burmah said it had n't held any discussions with shv and that no deal of any nature is in <unk> + the top state environmental official in massachusetts said clean harbors inc. 's <unk> statement for a proposed incinerator in <unk> was inadequate + the official john <unk> asked clean harbors for more information before ruling on a permit for the site + critics of the plan including the town of <unk> say the incinerator is a health hazard + clean harbors based in <unk> said it will proceed <unk> to submit the data requested + alan <unk> chief executive officer of clean harbors said he was very much encouraged by the official 's <unk> of clean harbors for the quality of some of the data in the report + citizens & southern corp. said it signed a definitive agreement to acquire security pacific corp. 's new york-based <unk> unit + terms of the bank holding companies ' agreement were n't disclosed + <unk> involves the purchase and collection of another company 's receivables + citizens based in atlanta said it has about $ N billion in <unk> sales annually the security pacific unit has about $ N billion annually + security pacific 's <unk> business works with companies in the apparel textile and food industries among others + the office of thrift supervision banned <unk> <unk> a former director of the failed vision banc savings association of <unk> texas from working in any financial institution insured by the government + the office a treasury department unit that is the successor to the federal home loan bank board said this was the first announcement of an enforcement action since this year 's <unk> legislation ordered that all such actions by federal banking regulators be made public + generally regulators have n't announced enforcement actions in the past + indeed the <unk> said that before the law took effect aug. N it banned another key vision banc insider from insured financial institutions + that individual was n't identified + vision banc was placed in government conservatorship in march and it operates under the control of the resolution trust corp. the agency created to sell or liquidate insolvent thrifts + the <unk> did n't say specifically why the action was taken against ms. <unk> + however it said <unk> found a variety of insider dealings at the thrift including extraordinary loan commissions paid to a firm associated with vision banc officials and loans diverted through borrowers back to the thrift officials + ms. <unk> could n't be reached for comment + arizona instrument corp. said it expects to post a third-quarter net loss of about $ N or N cents to N cents a share compared with net income of $ N or N cents a share a year earlier + the <unk> ariz. maker of underground <unk> systems said the most recent period was affected by customers ' problems <unk> with recent environmental protection agency regulations + for the nine months the company expects to post a net loss of about $ N or N cents to N cents a share on revenue of $ N million + a year earlier it had a loss of $ N or nine cents a share on revenue of $ N million + growth is good + at least that 's a theme emerging among many money managers who are anxious both to preserve the <unk> stock-market gains they have already achieved this year and to catch the next wave of <unk> performers + they are starting to buy growth stocks + remember them + the upper <unk> of this group were shares of the <unk> N companies whose profits of the 1960s and early 1970s grew steadily if not <unk> through thick and thin + that sort of <unk> performance sounds made to order for a time when corporate profits overall have been weakening from the brisk increases of recent years + the current flood of third-quarter reports are producing many more negative surprises than positive ones + those are unwelcome trends in a year that the dow jones industrial average has risen N N so far even with the 190.58-point plunge on oct. N broader market measures are in the same neighborhood + the question for investors is how to protect these returns and yet reach a little for additional gains + that 's the path of <unk> leading to growth stocks + i think it is a good theme for what looks to be an uncertain market says steven einhorn partner at goldman sachs + growth stocks may be as big as philip morris or medium-sized such as circuit city stores but their common characteristic is a history of increasing profits on the order of at least N N to N N a year money managers say + the period when growth stocks should be performing well is when their earnings are growing at a superior rate to the general level of corporate profits says stephen boesel president of t. rowe price 's growth and income fund + growth stocks also are attractive in periods of market volatility which many investors and analysts expect in the weeks ahead as everybody tries to <unk> where the economy is heading + this kind of <unk> uncertainty <unk> john <unk> senior economist for american express bank of the N period when the industrial average rolled through huge ranges and investors <unk> to the shares of companies with proven earnings records which became known as the <unk> N + and they will again say <unk> proponents of the <unk> theme + <unk> smith president of a money management company bearing his name predicts that investment companies using computers to identify companies with earnings momentum will climb on the <unk> <unk> as the overall corporate earnings outlook <unk> further + he also thinks foreign investors who are showing signs of more <unk> investing will join the pursuit and pump up prices + we 're just seeing the beginning of a shift mr. smith says + mr. smith recommends cypress semiconductor that is currently showing a robust N N earnings growth rate + ronald sloan executive vice president of <unk> capital management likes <unk> inc. a company that <unk> plastic into synthetic fibers for carpeting + mr. sloan <unk> the company as recession <unk> and notes that it has an annual earnings growth rate of N N a year over the past five years + <unk> stock closed friday at N N up N mr. sloan thinks that in a year it could hit N + others <unk> the <unk> of buying only blue-chip growth stocks + <unk> <unk> chief market strategist for first boston who still says we expect the dow average to be at N by <unk> nonetheless <unk> a sluggish economy in the meantime + he recommends such blue-chip growth <unk> as philip morris pepsico <unk> international reebok international and limited inc + all have a <unk> earnings growth rate of more than N N a year + some money managers are pursuing growth stocks at the expense of those that rise and fall along with the economic cycle + one of the stories of the fourth quarter is that we will get an unusual number of earnings disappointments from companies sensitive to the economy says mr. boesel of t. rowe price + james wright chief investment officer for banc one asset management says we 've been selling a disproportionate share of cyclical companies and buying a disproportionate share of high earnings stocks + he recently trimmed his portfolio of international paper dow chemical quantum chemical international business machines and digital equipment + he is putting money in dress <unk> circuit city stores bruno 's and rubbermaid + big cyclical companies are using all the <unk> they can to stabilize earnings says mr. sloan + he cites ibm which reported a N N earnings decline in the third quarter and which last week announced a $ N billion buy-back of its shares + what they are telling you is that they do n't have the ability to generate higher returns <unk> says mr. sloan + when they are buying back stock at N times earnings they are suggesting that the rate of return on competing internal projects is below returns on the stock + ibm says it considers its shares a good investment + but not all strategists or money managers are ready to throw in the towel completely on <unk> + growth stocks may <unk> cyclical stocks next year if the federal reserve begins to let interest rates <unk> sufficiently lower to boost the economy + goldman sachs 's mr. einhorn for one <unk> to that scenario + he suggests investors think about buying cyclical shares in the weeks ahead as well as growth issues + friday 's market activity + stock prices finished about unchanged friday in quiet expiration trading + traders anticipated a volatile session due to the october expiration of stock-index futures and options and options on individual stocks + but there were fewer price swings than expected + buy order imbalances on several big stocks were posted by the new york stock exchange + but block trading desks and money managers made a <unk> effort to meet the imbalances with stock to sell one trader said + as a result the dow jones industrial average drifted in narrow ranges in the final hour of trading and closed N higher to N + new york stock exchange volume was N + advancers on the big board lagged decliners N to N + for the week the industrial average gained N points or N N the biggest weekly point advance ever and a better than N N rebound from the N point loss the industrial average <unk> oct. N + broader market averages were little changed in the latest session + standard & poor 's 500-stock index gained N to N the dow jones equity market index fell N to N and the new york stock exchange composite index fell N to N + most of last week 's surge in the industrial average came on monday when the average rose N points as market players snapped up blue-chip issues and <unk> the broad market + that contrast was reflected in the smaller weekly percentage gains recorded by the broader averages + the s&p N rose N N the dow jones equity market index gained N N and the new york stock exchange composite index added N N + the dow jones transportation average fell N to N amid renewed weakness in the airline sector + ual skidded N N to N N on N million shares + on the week ual was down nearly N N + the latest drop followed a decision by british airways which had supported the $ 300-a-share buy-out offer for ual from a labor-management group not to participate in any revised bid + british airways fell N to N N + while most other airline issues took their <unk> from ual usair group rose N N to N N on N million shares amid speculation about a possible takeover proposal from investor marvin davis + usa today reported that mr. davis who had pursued ual before dropping his bid wednesday has acquired a stake of about N N in usair + unocal fell N N to N N and burlington resources declined N to N N + at a meeting with analysts british petroleum officials <unk> speculation that the company may take over a u.s. oil company according to dow jones professional investor report + both unocal and burlington had been seen as potential targets for a british petroleum bid + paper and forest-products stocks declined after smith barney harris upham & co. lowered investment ratings on a number of issues in the two sectors based on a forecast that pulp prices will fall sharply + international paper dropped N to N georgia-pacific fell N N to N N stone container tumbled N N to N N great northern nekoosa went down N to N N and weyerhaeuser lost N to N N + dun & bradstreet dropped N to N N on N million shares on uncertainty about the company 's earnings prospects + merrill lynch cut its rating and N earnings estimate thursday citing weakness in its <unk> business + <unk> & sessions which posted sharply lower third-quarter earnings and forecast that results for the fourth quarter might be near break-even fell N to N N + winnebago industries slid N to N N + the company which reported that its loss for the fiscal quarter ended aug. N widened from a year earlier cut its semiannual dividend in half in response to the earnings weakness + <unk> corporate investors fell N to N after declaring a quarterly dividend of N cents a share down from N cents a share + <unk> resources inc. said it will begin an offering of rights equivalent to N million common shares and valued at $ N + the <unk> hills <unk> real-estate holding company said it will offer the rights at $ N a share to shareholders of record on oct. N + the offering is scheduled to expire on nov. N + the company said it will use the proceeds of the offering for debt reduction and general corporate purposes including acquisitions + stockholders may buy one share at the subscription price for every four shares of stock they own + stockholders who exercise all their rights may buy additional shares the company said + the company said it has an option to increase the offering by up to N shares + the following u.s. treasury corporate and municipal offerings are tentatively scheduled for sale this week according to dow jones capital markets report $ N billion three-month and six-month bills + $ N billion of two-year notes + resolution funding corp. to sell $ N billion 30-year bonds + aim prime rate plus fund inc. N million common shares via painewebber inc + allied capital corp. ii N common shares via shearson lehman hutton inc + american <unk> co. N common shares via merrill lynch capital markets + associated natural gas corp. N common shares via dillon read & co + b & <unk> crude carriers ltd. four million common shares via salomon brothers inc + baldwin technology co. N class a shares via smith barney harris upham & co + blockbuster entertainment corp. $ N million face amount liquid yield option notes via merrill lynch + <unk> pharmaceuticals inc. N units via painewebber + immune response corp. three million common shares via merrill lynch + <unk> pharmaceuticals inc. N common shares via smith barney harris upham + <unk> titanium co. N million common shares via salomon brothers inc + <unk> inc. N common shares via salomon brothers inc + massachusetts approximately $ N million of general bonds consolidated loan of N series d via competitive bid + montgomery county maryland $ N million of general consolidated public improvement bonds of N series b via competitive bid + trinity river authority texas $ N of regional wastewater system improvement revenue bonds series N via competitive bid + city and county of <unk> hawaii $ N million of obligation bonds N series b due N via competitive bid + beverly hills $ N million of civic center project certificates of participation series N via a goldman sachs & co. group + <unk> county school district florida $ N million of school district general bonds via a first boston corp. group + connecticut housing finance authority $ N of housing mortgage revenue <unk> and <unk> bonds via a painewebber group + maryland stadium authority $ N of sports facilities lease revenue alternative minimum tax <unk> bonds series N d via a morgan stanley & co. group + michigan $ N million of michigan first general bonds including $ N million of environmental protection project bonds and $ N million of recreation project bonds via a shearson lehman hutton group + west virginia <unk> economic development and tourism authority $ N million of parkway revenue bonds series N via a painewebber group + san antonio texas $ N million of gas and electric revenue refunding bonds via a first boston group + mci communications corp. said it filed a shelf registration with the securities and exchange commission for issuance of as much as $ N million of debt securities + the debt will include <unk> notes sold through merrill lynch capital markets drexel burnham lambert inc. goldman sachs & co. and salomon brothers inc + the funds will be used for refinancing existing debt of the washington d.c. concern at lower interest rates and for other general purposes + the effective date of the registration is to be determined by the sec + a group including <unk> partners ltd. a fort worth texas investment partnership and richard e. <unk> a former adviser to the fort worth bass family said it reduced its stake in anacomp inc. to N N of the common shares outstanding + in a filing with the securities and exchange commission the group said it sold N anacomp common shares from aug. N to last wednesday for $ N to $ N a share resulting in a drop in its holdings to N shares + no reason was given in the filing for the sales + an anacomp official said the indianapolis <unk> concern had no comment on the group 's share sales + in march the group disclosed it held a N N stake in anacomp for investment purposes + it said then it had had and would continue to have discussions with anacomp 's management concerning its investment + home beneficial corp. richmond va. said it contracted to sell its N N interest in a <unk> shopping mall to a buyer that was n't identified + the life-insurance holding company said the sale would result in an after-tax gain of about $ N million or $ N a share in the first quarter of + the company also said it will adopt new accounting standards in the first quarter + the change will result in a charge of about $ N million or N cents a share because of an increase in deferred income-tax liability + in the first quarter of N the company earned $ N million or N cents a share + following is a weekly listing of <unk> net asset values of publicly traded investment fund shares reported by the companies as of friday 's close + also shown is the closing listed market price or a <unk> asked price of each fund 's shares with the percentage of difference + closed end bond funds + flexible portfolio funds + specialized equity and convertible funds + a ex-dividend + b as of thursday 's close + c translated at commercial rand exchange rate + e in canadian dollars + f as of wednesday 's close + a shareholder filed suit seeking to block <unk> video inc. 's proposed plan to be acquired by a new affiliate of closely held <unk> capital corp. for $ N a share or $ N million + the suit which seeks class-action status was filed in delaware chancery court + the complaint alleges that the price is unfair and grossly inadequate and that the defendants are seeking to ensure a <unk> of the purchase of <unk> thereby discouraging other bids + it seeks unspecified money damages + the new york company called the lawsuit without merit + shareholders are scheduled to vote on the transaction <unk> + this toronto closed-end fund cut the annual dividend on its class a common shares to one canadian cent from N canadian cents + the fund invests mainly in gold and silver bullion + it said the reduced dividend reflects the low price for precious metals + <unk> <unk> central fund 's vice president finance said losses for the fiscal year ending oct. N could be as high as one million canadian dollars us$ N + the fund last had a profit in N + the new dividend rate is payable nov. N to holders of record oct. N + in american stock exchange composite trading friday central fund was unchanged at $ N a share + comair holdings inc. said in cincinnati that it bought airline aviation academy a pilot training school based at sanford regional airport near <unk> fla + comair said it paid cash but declined to disclose the price + comair holdings is the parent of comair inc. a regional air carrier + airline aviation which has annual revenue of $ N million to $ N million has great growth potential because of the large number of u.s. pilots <unk> retirement age comair said + the unit will be renamed comair aviation academy and will continue to be headed by scott williams a son of its founder comair said + the collapse of a $ N billion buy-out of united airlines parent ual corp. has handed wall street 's takeover stock speculators their worst loss ever on a single deal + their $ N <unk> in estimated paper losses easily tops the $ N million in paper losses the takeover traders known as arbitragers suffered in N when gulf oil co. dropped a $ N billion offer for cities service co + in the six trading days since the ual labor-management buy-out group failed to get bank financing <unk> friday with the withdrawal of its partner british airways plc ual stock has plummeted by N N to N N from N N + the <unk> may recoup some of their paper losses if the ual deal gets <unk> up again as they did in N when occidental petroleum co. <unk> them with a $ N billion takeover of cities service + in the meantime the question faced by investors is what is ual stock worth + the short answer on a fundamental basis is that airline analysts say the stock is worth somewhere between $ N and $ N a share + that 's based on a multiple of anywhere between N to N times ual earnings which are estimated to come in somewhere around $ N a share this year + airline stocks typically sell at a discount of about one-third to the stock market 's price-earnings ratio which is currently about N times earnings + that 's because airline earnings like those of auto makers have been subject to the cyclical <unk> of the economy + that analysis matches up with stock traders ' reports that despite the huge drop in the stock ual has n't returned to the level at which it could attract buying by institutions solely on the basis of earnings + so anyone buying the stock now is betting on some special transaction such as a recapitalization or takeover and must do so using some <unk> about the likelihood of such an event + one analyst who asked not to be identified said he believes that the ual pilots and management can put together a bid in the $ N area but that it could take three to four months to close + at that level and given the uncertainty he believes ual stock should trade closer to + other observers note that ual 's board having accepted a bid of $ N a share might hold out for a new bid much closer to the original level even if it means that the management goes back to running the company for a while and lets things return to normal + by that logic the closing of a deal could be much further away than three to four months even though the eventual price might be higher + investment bankers following ual agree that the strongest impetus for an eventual deal is that the pilots have been attempting a buy-out for more than two years and are n't likely to stop having come so close to success + the pilots have a strong financing tool in their willingness to cut their annual compensation by $ N million and to commit $ N million from their retirement funds + on friday they also persuaded the ual flight attendants to join them + however investment bankers say that banks are n't likely to lend the almost $ N billion that would be necessary for a takeover even at a lower price without someone putting up a hefty <unk> of cash probably even greater than the N N in cash put up by investors in the leveraged takeover of northwest airlines parent nwa corp. in july + banks want to see someone putting up real cash at risk that is subordinate to the bank debt in any deal + that way they figure someone else has an even stronger <unk> to make sure the deal is going to work because they would be losing their money before the banks lost theirs + banks also want to be able to call someone on the telephone to fix a problem with a deal that goes bad <unk> someone other than a union leader + that leaves the pilots still in need of cash totaling around $ N billion far more than either they or the flight attendants can lay their hands on from retirement funds alone + one obstacle to the pilots ' finding such a huge amount of cash is their insistence on majority ownership + investors such as marvin davis of los angeles who have sought airline ownership this year have insisted they not the pilots must have control + one way out of that dilemma could be a partial recapitalization in which the pilots would wind up sharing the value of their concessions with public shareholders + the pilots could borrow against the value of their concessions using the proceeds to buy back stock from the public and give themselves the majority control they have been seeking + but it is n't clear that banks would lend sufficient money to deliver a big enough price to shareholders + the lack of any new cash probably would still leave the banks <unk> + in advising the ual board on the various bids for the airline starting with one for $ N a share from mr. davis the investment bank of first boston came up with a wide range of potential values for the company depending on <unk> methods and assumptions + using the the nwa takeover as a benchmark first boston on sept. N estimated that ual was worth $ N to $ N a share based on ual 's results for the N months ending last june N but only $ N to $ N based on a management estimate of results for N + first boston 's estimates had been higher before management supplied a N projection + using estimates of the company 's future earnings under a variety of scenarios first boston estimated ual 's value at $ N to $ N a share if its future labor costs conform to wall street projections $ N to $ N if the company reaches a settlement with pilots similar to one at nwa $ N to $ N under an adverse labor settlement and $ N to $ N under a pilot contract imposed by the company following a strike + and using liquidation value assuming the sale of all ual assets first boston estimated the airline is worth $ N to $ N a share + unfortunately all those estimates came before airline industry fundamentals deteriorated during the past month + american airlines parent amr and usair group both subject to takeover efforts themselves have each warned of declining results + some analysts do n't expect a quick revival of any takeover by the pilots + the deal has as one takeover expert puts it so many moving parts + i do n't see anybody who 's sophisticated getting his name associated with this mess until the moving parts stop moving + in addition to the need for another cash equity investor the other moving parts include the pilots themselves who can scuttle rival deals by threatening to strike the machinists union the pilots ' longtime rivals who helped scuttle the pilots ' deal and regulators in washington whose opposition to foreign airline investment helped throw the deal into doubt + in the meantime the <unk> are bleeding + wall street traders and analysts estimate that takeover stock traders own ual stock and options equal to as many as N million shares or about N N of the total outstanding + frank <unk> an analyst with phoenix capital corp. in new york estimates that the <unk> paid an average of about $ N a share for their ual positions + that would indicate that the <unk> have paper losses on ual alone <unk> $ N million + ual corp nyse symbol ual + business airline + year ended dec. N N + sales $ N billion + net income \* $ N million or $ N a share + second quarter june N N per-share earnings $ N vs. $ N + average daily trading volume N shares + common shares outstanding N million + eastern enterprises bolstered by improved <unk> in its <unk> unit had a narrower third-quarter net loss of $ N million or five cents a share + last year eastern had a quarter loss of $ N million or eight cents a share + quarter revenue rose N N to $ N million from $ N million a year ago + the <unk> mass. utilities and <unk> concern said results for the third quarter usually a money-losing one because of the <unk> of the gas business were also aided by higher gas sales and the may N acquisition of water products company + for the nine months eastern had net income of $ N million or $ N a share up N N from $ N million or $ N a share a year ago + revenue grew N N to $ N million from $ N million + convex computer corp. continuing its rapid growth while other computer companies <unk> reported an N N increase in third-quarter net income from a year earlier and a N N increase in revenue + net was $ N million or N cents a share up from $ N million or nine cents a share + revenue was $ N million up from $ N million + for the nine months net was $ N million or N cents a share up N N from $ N million or N cents a share a year earlier + revenue was $ N million up N N from $ N million + convex makes <unk> that sell for up to $ N million and has an installed base of more than N systems and N customers world-wide + during the third quarter it said it won several significant contracts including a five-year contract with the national institutes of health valued at an estimated $ N million + earlier this month convex made a bid to <unk> other supercomputer competitors like digital equipment corp. and international business machines corp. by adopting an open set of standards and introducing new hardware and software to link different systems + the new products allow customers to add convex machines to established systems made by other manufacturers which opens up a <unk> market for us said robert j. <unk> convex 's chairman president and chief executive + convex also recently agreed to use <unk> a standard for the computer language called unix + <unk> is one of three or four versions of unix but it is increasingly required by the federal government as it tries to <unk> its computer systems + most other supercomputer manufacturers have yet to adopt the <unk> standard mr. <unk> said adding that they prefer to maintain <unk> systems that lock in customers + they want a <unk> trap once you get in you ca n't get out he said + but the customer does n't want that + convex closed in over-the-counter trading on friday at $ N a share down N cents + troubled saatchi & saatchi co. has attracted offers for some of its advertising units with potential suitors including interpublic group but has rejected them people familiar with the company said + industry executives said interpublic approached saatchi in august about buying its <unk> unit but was turned down by chairman maurice saatchi + more recently interpublic <unk> about one of saatchi 's smaller communications companies identified as the <unk> public relations firm by several industry executives but again was rebuffed they said + interpublic 's chairman and chief executive officer philip <unk> jr. made the pitches in visits to mr. saatchi in london the executives said + a saatchi spokesman declined to comment about interpublic + but the spokesman confirmed that saatchi has received several inquiries from companies interested in acquiring its <unk> and <unk> units + he added we have no intention of selling either business + interpublic declined comment + the offers come as saatchi is struggling through the most troubled period in its <unk> history + takeover speculation has been <unk> its consulting business is on the block and its largest shareholder <unk> asset management has said it 's been approached by third parties regarding a possible restructuring + analysts have continually lowered their earnings estimates for the company and their outlook at least for the short term is bleak + in the midst of the current turmoil saatchi is attempting to shore up its ad businesses + it named a new chief executive officer former <unk> international head robert <unk> + it rebuffed an offer by carl spielvogel head of saatchi 's backer spielvogel bates unit to lead a management buy-out of all or part of saatchi + and last week people close to saatchi said maurice saatchi and his brother charles would lead a buy-out if a hostile bid emerged + but saatchi 's troubles have only <unk> up interest among outsiders interested in picking off pieces of its ad businesses + while saatchi 's major agency networks backer spielvogel and saatchi & saatchi advertising would be difficult for any ad firm to buy because of potential client conflicts its smaller businesses are quite attractive + <unk> for example has had big problems at its new york office but offers strong offices in other areas of the country including minneapolis and chicago + that would would make it appealing to a network such as interpublic that already has a healthy new york presence + while there would be some client conflicts they would n't be nearly as onerous as with saatchi 's other agencies + <unk> also would be a sizable addition to an agency network it has billings of about $ N million and blue-chip clients including general mills <unk> and dow brands + <unk> meanwhile has expanded aggressively and now ranks as the <unk> u.s. public relations firm according to <unk> <unk> of public relations firms + it would be attractive to an agency such as interpublic one of the few big agency groups without an affiliated public relations firm of its own + other saatchi units include ad agency <unk> & mccall which has the mercedes account and which has been attempting to buy itself back and howard <unk> a sports and event marketing firm + despite saatchi 's firm stand against selling its ad units u.s. analysts believe the company may ultimately sell some of the smaller units + mr. <unk> in a recent interview said he might sell a marginal agency or office + analysts believe he may ultimately <unk> of some of the <unk> businesses + prudential 's final four + prudential insurance co. of america said it selected four agencies to pitch its $ N million to $ N million account + in addition to backer spielvogel bates a saatchi unit that has handled the account since N the other agencies include lowe <unk> a unit of the lowe group grey advertising and wpp group 's <unk> <unk> <unk> agency + all agencies are new york-based + a spokesman for the insurance and financial services firm based in newark n.j. said it hopes to make a decision within three to four months + jamaica fires back + the jamaica tourist board in the wake of young & rubicam 's indictment on charges that it <unk> <unk> officials to win the account in N released a <unk> memo blaming the agency for the embarrassing incident + the memo attempts to remove the tourist board as far as possible from the agency which pleaded innocent to the charges + among other things the memo contends that young & rubicam gave false assurances that the investigation would n't <unk> any information that would <unk> the government of jamaica or the jamaica tourist board + it also contends that young & rubicam never told the tourist board about its relationship with ad ventures a <unk> firm hired by the agency + the u.s. indictment charges ad ventures was a front used to <unk> <unk> to the <unk> of tourism + the memo also <unk> the agency for the timing of its announcement thursday that it would no longer handle the $ N million to $ N million account + the agency declined comment but said it will continue work until a new agency is chosen + ad notes + new account + american <unk> motor corp. <unk> calif. awarded its estimated $ N million to $ N million account to <unk> los angeles + also participating in the <unk> was los angeles agency <unk> advertising america + american <unk> 's previous agency <unk> did n't participate + <unk> talks + <unk> <unk> <unk> 's president and chief executive officer jerry j. <unk> said the agency is holding conversations about acquiring <unk> collins <unk> & <unk> a midsized chicago agency but a deal is n't yet close to being completed + who 's news + john wells N former president and chief executive of <unk> <unk> <unk> 's chicago office was named management director and director of account services at wpp group 's j. walter thompson agency in chicago + <unk> <unk> N was named president and chief operating officer of ogilvy & mather direct the direct mail division of wpp group 's ogilvy & mather agency + grand metropolitan plc the united kingdom food and beverage group that owns <unk> inc. of the u.s. announced a <unk> of <unk> executive duties intended to fit the company 's recent expansion + david <unk> formerly group finance director at <unk> <unk> plc will become grand met 's first group finance director in january + in a statement grand met said its recent growth and wider geographic spread made it necessary to create the new position + the company also <unk> several executive responsibilities + david <unk> formerly in charge of gambling operations was appointed chief executive for retailing and property + peter <unk> group strategy development director and bill <unk> group personnel director will become part of the board 's management committee + david baltimore who has just been named president of rockefeller university already knows what it 's like to go through life with nobel <unk> <unk> to one 's name + he is currently experiencing what it 's like to have the phrase under investigation for scientific fraud also attached to his name + the nobel committee made the first addition john dingell 's congressional committee created the second + both of dr. baltimore 's public faces have been on view the past few weeks while he was under consideration to succeed <unk> <unk> as head of the prestigious rockefeller research institution + it came to light that a substantial number of rockefeller 's faculty were upset over or even opposed to dr. baltimore 's impending appointment + they were <unk> at what they regarded as dr. baltimore 's <unk> attitude toward the dingell committee which held hearings on a dispute over the lab <unk> of a researcher who had <unk> a scientific paper with dr. baltimore + readers of these columns the science police may N will recall that dr. baltimore was merely the most well-known part of the dingell committee 's larger investigation which touched mit <unk> duke the national institutes of health and elsewhere + rep. dingell even managed to <unk> the services of the secret service in his investigation of the baltimore paper + <unk> as mr. dingell has a special interest in nih and the institutions that receive its funding the rockefeller scientists were no doubt <unk> by dr. baltimore 's <unk> public opinion of this congressional <unk> whose behavior reminded dr. baltimore of the <unk> era + this well may be the first time that the venerable rockefeller university has brushed up publicly against the <unk> now common in american science + john dingell <unk> a david baltimore <unk> activists do $ N million of damage to labs at the <unk> <unk> <unk> <unk> the <unk> of chemistry on talk shows <unk> <unk> files lawsuits in federal court to thwart <unk> experiments and <unk> researcher gary <unk> 's own colleagues at <unk> state <unk> him for violating epa rules + scientists are <unk> who still think that the <unk> movement in this country is n't their concern or that a david baltimore could have somehow <unk> a john dingell + mr. dingell by the way has <unk> another nih investigation of the baltimore paper adding to several previous investigations + something other than what most scientists would recognize as the truth is being sought here + fortunately there are signs that increasing numbers of scientists understand the necessity of speaking out + david <unk> a nobel <unk> at harvard has taken the lead in defending research with animals as has dr. michael <unk> + nasa defended itself vigorously and successfully against a <unk> suit to block the galileo launch + scientists need to understand that while they tend to believe their work is <unk> about establishing new knowledge or doing good today it is also about power + in a <unk> world scientists may earn wide <unk> and even <unk> for their work but they also attract the attention of people who wish to gain control over the content funding and goals of that work + when a david baltimore or the next target decides it is better to stand up to these forces his fellow scientists would do well to recognize what is fundamentally at stake and offer their public support + wisconsin toy co. said it definitively agreed to acquire closely held everything 's a dollar inc. of virginia beach va. for stock currently valued at about $ N million + the milwaukee toy retailer said the agreement calls for everything 's a dollar holders to receive for their holdings a total of N newly issued wisconsin toy shares + wisconsin toy currently has about N million shares outstanding + a company official said arthur <unk> until january chief operating officer of <unk> <unk> save inc. will buy a N N stake in the new wisconsin toy subsidiary and will act as head of everything 's a dollar + wisconsin toy has N retail stores primarily in discount <unk> + everything 's a dollar operates N <unk> stores + while <unk> nicholas <unk> 's sept. N letter offering <unk> to your world-wide tax revolution table editorial page aug. N i am surprised that he neglected other errors that for some of us strike close to home + as a channel <unk> i was <unk> to see my <unk> listed as one of N countries with an income tax + despite a history of <unk> local debate on the topic my <unk> clearly reads british citizen + whether mr. <unk> 's oversight is merely a sign of a <unk> 's benign <unk> is a question my fellow channel <unk> and friends on the <unk> of man will continue to <unk> + patrick <unk> + <unk> j. <unk> chairman of jet <unk> inc. was elected to the board of this cruise line + the board <unk> to seven members + ducks + if the white house spots one it intends to fire a veto at it + ducks are this season 's word for new taxes under <unk> director richard darman 's <unk> that if it looks like a duck walks like a duck and <unk> like a duck it 's a duck + george bush is quite clear no new ducks + but what about all those <unk> ducks <unk> over washington + we see a whole <unk> of programs that will impose significant costs on the american economy in the form of <unk> regulation and higher liabilities + federal child care quack + the clean air bill quack + the <unk> bill quack quack + the bush white house is breeding <unk> ducks the same way the nixon white house did it <unk> on an issue that is <unk> cleaner air better treatment of the disabled better child care + it comes up with a <unk> version of a democratic proposal + the bill gets signed into law and then the administration watches <unk> wondering where all the unexpected costs came from + consider for instance the very fat <unk> known as <unk> child care + the president came up with a good bill but now may end up signing the awful bureaucratic <unk> <unk> on capitol hill + it would create N local <unk> commissions <unk> to the department of health and human services + they 'd determine where parents could store their kids during the day and they 'd regulate the storage facilities + the initial costs are said to be in the $ N billion a year range but that 's only the beginning + new <unk> tend to grow creating a rationale for new taxes + quack + the administration claims that its clean air bill will cost businesses between $ N billion and $ N billion annually but economist michael evans estimates that the costs for firms will actually be in the $ N billion a year range + the house bill also <unk> economic efficiency in all sorts of <unk> ways + for example the administration proposal imposes extremely tough emissions standards on new power plants + so instead of building more efficient modern plants utilities stick <unk> on the old plants + the money spent on <unk> is diverted from planned research on new cleaner technology + the bill also imposes the california <unk> standards on all cars nationwide as if a car registered in big sky <unk> needed to be as clean as one driven in los angeles + proponents of the nationwide standards say the cost for car buyers would be about $ N per car + other analysts say that estimate is low + quack + nobody knows how many billions of dollars the americans with disabilities act will cost because nobody knows what the bill <unk> + it is an intentionally vague document that will create a wave of litigation + judges will write the real bill as suits roll through the courts + lawyers will benefit + private companies and ultimately their customers will end up footing the huge bill + the effect of nixon era <unk> ducks was an economy <unk> up with regulations and <unk> + all this was recognized and <unk> in the succeeding years by economists some of whom worked in the reagan administration to lift this burden from the american people states and local governments + running for president in N and N george bush also <unk> <unk> the economic <unk> of the 1970s + in fact during last year 's campaign the entire nation constantly heard mr. bush <unk> his <unk> as head of the task force on regulatory relief + government continues to inhibit the productivity of our <unk> and the international competitiveness of american business the vice president declared when he was head of the task force + but with the impending passage of these new programs mr. bush will surely be sending many people <unk> back into the regulatory <unk> that he had helped cut back + by N the number of federal regulators was down to about N + then it turned up and by one estimate the number will be up to about N regulators by next year + holding the dam on taxes is the most important task of the bush presidency + we would have thought by now though that there was a significant core of people involved in government life who understood that direct taxation is n't the only way to slow down an economy + it is merely the most obvious + what is even more ironic is that all over the world nations are learning that <unk> public programs often <unk> + but while they are unloading these burdens the united states is close to creating three more big ones + the bush administration ought to be setting aside some of its <unk> for the <unk> ducks + confidence in the pound is widely expected to take another sharp dive if trade figures for september due for release tomorrow fail to show a substantial improvement from july and august 's <unk> deficits + chancellor of the exchequer nigel lawson 's restated commitment to a firm monetary policy has helped to prevent a <unk> in sterling over the past week + but analysts <unk> underlying support for sterling has been eroded by the chancellor 's failure to announce any new policy measures in his mansion house speech last thursday + this has increased the risk of the government being forced to increase base rates to N N from their current N N level to defend the pound economists and foreign exchange market analysts say + the risks for sterling of a bad trade figure are very heavily on the down side said chris <unk> senior u.k. economist at nomura research institute + if there is another bad trade number there could be an awful lot of pressure noted simon <unk> u.k. economist for midland <unk> a unit of midland bank plc + forecasts for the trade figures range widely but few economists expect the data to show a very marked improvement from the # N billion $ N billion deficit in the current account reported for august + the august deficit and the # N billion gap registered in july are topped only by the # N billion deficit of october N + <unk> <unk> european economist at baring brothers & co. said there is no sign that britain 's manufacturing industry is <unk> itself to boost exports + at the same time he remains fairly pessimistic about the outlook for imports given continued high consumer and capital goods inflows + he <unk> the current account deficit will narrow to only # N billion in september + however mr. <unk> said he believes that a reduction in raw material <unk> by industry could lead to a sharp drop in imports + combined with at least some rebound in exports after august 's unexpected decline the deficit could narrow to as little as # N billion + mr. <unk> who also forecasts a # N billion current account gap warns that even if the trade figures are bullish for sterling the currency wo n't advance much because investors will want to see further evidence of the turnaround before adjusting positions + nevertheless he noted no one will want to go into the trade figures without a flat position in the pound + meanwhile overall evidence on the economy remains fairly <unk> + in his mansion house speech mr. lawson warned that a further slowdown can be expected as the impact of the last rise in interest rates earlier this month takes effect + u.k. base rates are at their highest level in eight years + but consumer expenditure data released friday do n't suggest that the u.k. economy is slowing that quickly + the figures show that spending rose N N in the third quarter from the second quarter and was up N N from a year ago + this compares with a N N rise in the second from the first quarter and a N N increase from the second quarter of N + mr. <unk> said the data show the economy is still quite strong but suggestions that much of the spending went on services rather than consumer goods should reduce fears of more import rises + certainly the chancellor has made it clear that he is prepared to increase interest rates again if necessary to both ensure that a substantial slowdown does take place and that sterling does n't decline further + thursday he reminded his audience that the government can not allow the necessary <unk> of monetary policy to be undermined by exchange rate weakness + analysts agree there is little holding sterling firm at the moment other than mr. lawson 's promise that rates will be pushed higher if necessary + and they warn any further drop in the government 's popularity could swiftly make this promise sound <unk> + sterling was already showing some signs of a lack of confidence in mr. lawson 's promise friday + in european trading it declined to $ N and N marks from $ N and N marks late thursday + economists suggested that if the pound falls much below N marks the government will be forced to increase rates to N N both to halt any further decline and ensure that the balance of monetary policy remains unchanged + friday 's market activity + the dollar posted gains in quiet trading as concerns about equities <unk> + foreign exchange dealers said that the currency market has begun to distance itself from the volatile stock exchange which has <unk> the market since oct. N when the dow jones industrial average plunged more than N points + currency analysts predict that in the coming week the foreign exchange market will shift its focus back to economic fundamentals keeping a close eye out for any signs of monetary easing by u.s. federal reserve + late in the new york trading day the dollar was quoted at N marks up from N marks late thursday in new york + the u.s. currency was also changing hands at N yen up from N yen in new york late thursday + in tokyo on monday the u.s. currency opened for trading at N yen up from friday 's tokyo close of N yen + on the commodity exchange in new york gold for current delivery settled at $ N an ounce up N cents + estimated volume was a light N million ounces + in early trading in hong kong monday gold was quoted at $ N an ounce + east rock partners limited partnership said it proposed to acquire a.p. green industries inc. for $ N a share + in an oct. N letter to a.p. green 's board east rock said the offer is subject to the signing of a merger agreement by no later than oct. N + the letter attached to a filing with the securities and exchange commission said the approval is also contingent upon obtaining satisfactory financing + an a.p. green official declined to comment on the filing + the $ <unk> proposal values the company at about $ N million + a.p. green currently has N shares outstanding + its stock closed at $ N up $ N in national over-the-counter trading + the company is a mexico mo. maker of <unk> products + east rock also said in the filing that it boosted its stake in a.p. green to N N + it now holds N a.p. green common shares including N shares bought last thursday for $ N to $ N a share + new york-based john <unk> and robert macdonald control east rock partners inc. the sole general partner of east rock partners <unk> + the sole limited partner of the partnership is <unk> brick <unk> inc. an indirect subsidiary of <unk> group inc + both <unk> brick and <unk> group are based in boston + freight rates declining for most of the decade because of competition spurred by deregulation are <unk> out turning upward and threatening to fuel inflation + trucking shipping and air-freight companies have announced rate increases scheduled for this fall or early next year reflecting higher costs and tightened demand for freight transport + major shippers say they expect freight rates to rise at least as fast as inflation and maybe faster in the next few years + that 's a big change from recent years when freight <unk> was a bright spot for u.s. productivity helping to restrain inflation and make u.s. industry more competitive abroad + demand has caught up with the supply of certain types of freight transportation and rates are starting to move up at a rate close to or slightly more than the inflation rate said clifford <unk> director of <unk> at du pont co + shippers surveyed recently by ohio state university said they expect their <unk> storage and distribution costs to rise about N N this year + only N N of the N shippers polled expected their <unk> costs to decrease compared with N N who had looked to freight transport to reduce costs in past years + this is the first year since transportation deregulation in N that we have had such a dramatic and broad-based <unk> in perceived transportation rates said bernard <unk> a transportation <unk> professor at ohio state in columbus + the deregulation of <unk> and trucking companies that began in N enabled shippers to bargain for transportation + carriers could use their equipment more efficiently leading to overcapacity they were eager to fill + shippers cut about $ N billion from their annual <unk> truck and rail costs to about $ N billion or about N N of gross national product down from N N of gnp in N + but with much of the <unk> squeezed out of the <unk> system rising costs are likely to be reflected directly in higher freight rates + shippers are saying the party 's over said mr. <unk> + shippers wo n't be able to look for <unk> savings as they have for the last eight or nine years + transport rates wo n't be an opportunity for offsetting cost increases in other segments of the economy + robert <unk> a consultant at arthur d. little inc. cambridge mass. said we 've gotten all the benefits of deregulation in <unk> reductions + now we are starting to see real <unk> increases as carriers replace equipment pay higher fuel costs and pay more for labor + you 'll see carriers try to recoup some of the price cutting that occurred previously + not everyone believes that the good times are over for shippers + there 's still a lot of pressure on rates in both rail and truck said gerard <unk> <unk> in transportation at massachusetts institute of technology + <unk> companies which carry the freight of several shippers in each truck <unk> discounted away a N N rate increase implemented last april + the carriers were competing fiercely for market share + <unk> increases are likely to be <unk> by weakening <unk> levels and keen competition for freight from trucks + an official at consolidated <unk> inc. a menlo park calif. <unk> carrier said rate discounting in that industry has begun to stabilize + consolidated <unk> plans to raise its rates N N late this year or early next year and at least two competitors have announced similar increases + <unk> are trying to send signals that they need to stop the <unk> forget about market share and go for higher rates said michael lloyd an analyst at salomon <unk> + and shippers are getting the feeling that they have played one <unk> off against another as much as they can he said + air-freight carriers raised their rates for u.s. products going across the pacific to asia by about N N earlier this month + and japan air lines said it plans to boost its rates a further N N over the next two years + such rate increases will increase the total cost of u.s. products and slow down the rate of increase of u.s. exports said richard <unk> a senior vice president of <unk> air & sea service u.s.a. inc. the u.s. <unk> subsidiary of nippon <unk> <unk> of japan + ship companies carrying bulk commodities such as oil grain coal and iron <unk> have been able to increase their rates in the last couple of years + some bulk shipping rates have increased N N to N N in the past few months said salomon 's mr. lloyd + and ship lines carrying containers are also trying to raise their rates + carriers boosted rates more than N N in the north atlantic between the u.s. and europe last september hoping to partly restore rates to earlier levels + ship lines operating in the pacific plan to raise rates on containers carrying u.s. exports to asia about N N effective next april + mgm grand inc. said it filed a registration statement with the securities and exchange commission for a public offering of six million common shares + the beverly hills calif.-based company said it would have N million common shares outstanding after the offering + the hotel and <unk> company said merrill lynch capital markets will lead the underwriters + proceeds from the sale will be used for remodeling and <unk> projects as well as for the planned mgm grand <unk> and theme park + bob stone <unk> over a letter from his manager putting him on <unk> for <unk> + mr. stone thought the discipline was unfair he believed that his manager wanted to get rid of him for personal reasons + unable to persuade the manager to change his decision he went to a company court for a hearing + at the scheduled time mr. stone entered a conference room in a building near where he worked + after the three members of the court introduced themselves the chairman of the panel said go ahead and tell us what happened + we may ask questions as you go along or we may wait until the end + no lawyers or tape recorders were present + the only extra people were a couple of personnel specialists one of whom knew mr. stone 's case <unk> and would help fill in any facts needed to give the court the full picture + over a cup of coffee mr. stone told his story + he talked about N minutes + when he was through the court members asked many questions then the chairman said they would like to hear his manager 's side and talk to witnesses + the chairman promised mr. stone a decision within two weeks + bob stone is a <unk> name but the incident described is real + it happened at northrop corp. in los angeles + the court is called the management appeals committee or just mac and it is likely to hear a couple of dozen cases a year + alter some details of this example and it could be taking place today at federal express in memphis the defense and <unk> systems divisions of honeywell in minneapolis a general electric plant in columbia md. or a number of other companies + these firms are <unk> in a significant new trend in the corporate world the rise of what i call corporate due process + although corporate due process is practiced today in few companies perhaps N to N it is one of the fastest developing trends in industry + in the coming decade a majority of <unk> companies are likely to adopt it + corporate due process appeals to management for a variety of reasons + it reduces lawsuits from <unk> employees and <unk> with all that means for reduced legal costs and better public relations + it helps to keep out unions + it increases employee commitment to the company with all that means for efficiency and quality control + what must your management team do to establish corporate due process + here are four key steps + N make sure you have a strong personnel department + it must be able to handle most of the complaints that can not be solved in the <unk> by managers and their subordinates else the company court or <unk> will be <unk> with cases + at polaroid the personnel policy planning committee may hear only about N cases a year the rest of the many hundreds of complaints are resolved at earlier stages + at <unk> the system board of adjustment <unk> N to N cases a year only a fraction of the complaints brought to personnel specialists + at citicorp the problem review board may hear only N or so cases because of personnel 's <unk> in <unk> + in a typical year up to N N of the work force goes to personnel specialists with complaints of unfair treatment + in a large company that means many hundreds of complaints for personnel to handle + N formally or <unk> train all your managers and supervisors in the company 's <unk> approach + see that they know company personnel policy <unk> and <unk> for it is the law governing company courts and <unk> + coach them in handling complaints so that they can resolve problems immediately + in case managers and personnel specialists are unsuccessful and subordinates take their complaints to a company court or <unk> teach managers to accept <unk> as a fact of business life for in a good <unk> system they are bound to happen + in the N companies i studied reversal rates range on the average from N N to N N + N decide whether you want a panel system or a single <unk> + a panel system like that in the bob stone example enjoys such advantages as high credibility and for the <unk> mutual support + an <unk> system that is an investigator who acts first as a <unk> and then switches hats and <unk> the facts has such advantages as speed flexibility and maximum privacy + international business machines and bank of america are among the companies using the <unk> approach + N make your <unk> system visible + it wo n't do any good for anybody unless employees know about it + most <unk> hesitate to go all out in advertising their <unk> systems for fear of encouraging <unk> and <unk> <unk> to file complaints + on the other hand they make sure at a minimum that their systems are described in their employee <unk> and talked up by personnel specialists + <unk> <unk> goes further and sometimes features its <unk> procedure in <unk> tv programs + naturally one of the best ways to guarantee <unk> for your <unk> system is for top management to support it + at ibm the company 's open door system is sometimes the subject of <unk> from the chief executive + federal express goes further in this respect than any company i know of with both frederick smith and james <unk> chief executive and chief operating officer respectively sitting in on the appeals board almost every tuesday to decide cases + mr. <unk> is a consultant based in <unk> mass. and author of justice on the job <unk> <unk> in the <unk> workplace harvard business school press N + tokyo stocks closed higher in active trading friday marking the fourth consecutive daily gain since monday 's sharp fall + london shares closed moderately lower in thin trading + at tokyo the nikkei index of N selected issues was up N points to N + the index advanced N points thursday + in early trading in tokyo monday the nikkei index rose N points to N + friday 's volume on the first section was estimated at one billion shares up from N million thursday + winners <unk> losers N to N while N issues remained unchanged + with investors relieved at the overnight gain in new york stocks <unk> buying orders <unk> into the market from early morning making traders believe the market was back to normal + the nikkei which reached as high as N right after the opening surrendered part of its early advance toward the end of the day because of profit-taking + investors especially dealers do n't want to hold a position over the weekend a trader at dai-ichi securities said adding though that the trading mood remained positive through the afternoon session + the tokyo stock price index <unk> of all issues listed in the first section which gained N points thursday was up N points or N N at N + the second section index which rose N points thursday was up N points or N N to close at N + volume in the second section was estimated at N million shares up from N million thursday + in turmoil caused by the previous friday 's plunge in new york stocks the nikkei marked a sharp <unk> fall monday + but the nikkei fell an overall N N in value that day compared with wall street 's far sharper N N drop on oct. N + the tokyo market 's <unk> helped participants to regain confidence gradually as they spent more time on analyzing factors that caused the friday plunge and realized these problems were unique to new york stocks and not directly related to tokyo + the nikkei continued to gain for the rest of the week adding N points in four days more than <unk> monday 's losses + but further major advances on the nikkei are n't <unk> this week by market observers + investors are still waiting to see how the u.s. government will decide on interest rates and how the dollar will be stabilized + some high-priced issues made a comeback friday + pioneer surged N yen $ N to N yen $ N + <unk> advanced N yen to N + <unk> gained N to N + <unk> attracted investors because of their land property holdings that could figure in development or other plans traders said + <unk> gained N to N and <unk> added N to N + <unk> <unk> and pharmaceuticals continued to be bought following thursday 's gains because of strong earnings <unk> + daiwa house gained N to N + <unk> homes was up N at N + <unk> advanced N to N and ohbayashi added N to N + fujisawa added N to N and <unk> advanced N to N + london share prices were influenced largely by declines on wall street and weakness in the british pound + the key financial times-stock exchange 100-share index ended N points lower at N above its intraday low of N but off the day 's high of N + the index finished N N under its close of N the previous friday although it <unk> some of the sharp losses staged early last week on the back of wall street 's fall + london was weak throughout friday 's trading however on what dealers attributed to generally thin interest ahead of the weekend and this week 's potentially important u.k. trade figures for september + the ft-se N largely remained within an <unk> range <unk> within the first hour of trading before it eased to an intraday low late in the session when a flurry of program selling pushed wall street lower + the <unk> 30-share index closed N points lower at N + volume was extremely thin at N million shares the <unk> volume of the week and modestly under thursday 's N million shares + dealers said the day 's action was <unk> outside some response to sterling 's early weakness against the mark and fears that wall street might open lower after its strong leap forward thursday + they added that market-makers were largely <unk> after aggressively supporting the market thursday in their <unk> to cover internal shortages of ft-se N shares + interest may remain limited into tomorrow 's u.k. trade figures which the market will be watching closely to see if there is any improvement after disappointing numbers in the previous two months + the key corporate news of the day was that british airways decided to withdraw from a management-led bid for ual corp. the parent of united airlines + british airways rose initially after announcing its withdrawal from the ual deal + dealers said they viewed the initial # <unk> $ N million <unk> for a N N stake in the airline as a bit much + its shares slid in late dealings to close a penny per share lower at N pence + the airline was the most active ft-se N at N million shares traded + the next most active <unk> stock was b.a.t industries the target of sir james goldsmith 's # N billion bid + the company gained shareholder approval thursday to restructure in a bid to fend off the hostile takeover + sir james said thursday night that his plans for the takeover had n't changed + b.a.t ended the day at N down N on turnover of N million shares + dealers said it was hit by some profit-taking after gains since <unk> + in other active shares <unk> <unk> shed N to N on volume of N million shares after a barclays de zoete wedd downgrading while <unk> holdings a food products concern was boosted N to N after it disclosed it would seek shareholder approval to begin share <unk> + elsewhere in europe share prices closed higher in stockholm brussels and milan + prices were lower in frankfurt zurich paris and amsterdam + south african gold stocks closed moderately lower + share prices closed higher in sydney taipei wellington manila hong kong and singapore and were lower in seoul + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + the u.s. is required to notify foreign <unk> if it knows of coup plans likely to endanger their lives government officials said + the notification policy was part of a set of guidelines on handling coups outlined in a secret N exchange of letters between the reagan administration and the senate intelligence committee + the existence of the guidelines has become known since president bush disclosed them privately to seven republican senators at a white house meeting last monday + officials familiar with the meeting said mr. bush cited the policy as an example of the sort of congressional requirements the administration contends contribute to the failure of such covert actions as this month 's <unk> effort to oust panamanian dictator manuel noriega + according to the officials mr. bush even read to the senators <unk> from a highly classified letter from the committee to the white house discussing the guidelines + they said the president conceded the notification requirement did n't affect his decision to lend only minor support to this month 's panama coup effort + no notification was ever considered officials said apparently because the u.s. did n't think the coup <unk> intended to kill mr. noriega but merely sought to <unk> him + what 's more both administration and congressional officials hint that the notification requirement is likely to be dropped from the guidelines on coup attempts that are being <unk> by the panel and the white house + the <unk> was launched at a meeting between mr. bush and intelligence committee leaders oct. N a few days before the meeting at which the president complained about the rules + however the disclosure of the guidelines first reported last night by nbc news is already being interpreted on capitol hill as an unfair effort to pressure congress + it has reopened the bitter <unk> between the white house and congress over who is responsible for the failure to oust mr. noriega and more broadly for difficulties in carrying out covert activities abroad + a statement issued by the office of the committee chairman sen. david boren d. okla. charged that the disclosure is part of a continuing effort to shift the criticism for the failure of the recent coup attempt in panama + the statement added someone has <unk> chosen to <unk> <unk> portions of highly classified <unk> between the two branches of government + not only does this come close to a violation of law it violates the trust we have all worked to develop + sen. boren said it 's time to stop <unk> and work together to develop a clear and appropriate policy to help the country in the future + i 've invited the president to send his suggestions to the committee + republican sen. william cohen of maine the panel 's vice chairman said of the disclosure that a text torn out of context is a <unk> and it is unfair for those in the white house who are <unk> to present the evidence in a selective fashion + sen. boren said the committee could n't defend itself by making the documents public because that would violate <unk> rules + but the chairman and other committee members stressed that the notification guideline was n't imposed on the white house by a <unk> congress + instead both congressional and administration officials agreed it grew out of talks about <unk> in panama that were initiated by the administration in july N and stretched into last october + the guideline was n't a law but a joint interpretation of how the u.s. might operate during foreign coups in light of the longstanding presidential order banning a u.s. role in assassinations + in fact yesterday the administration and congress were still <unk> on what had been agreed to + one administration official said notification was required even if the u.s. gets wind of somebody else 's coup plans that seem likely to endanger a dictator 's life + but a congressional source close to the panel said the rule only covered coup plans directly involving the u.s. + although the notification guideline was n't carried out in this month 's coup attempt some administration officials argue that it may have led to <unk> and uncertainty on the part of u.s. intelligence and military <unk> in panama + one senior administration official called the guideline <unk> and said it could make u.s. <unk> reluctant to even listen to coup plans for fear they may get into legal trouble + the issue came to a head last year officials recalled partly because the reagan administration had sought unsuccessfully to win committee approval of funding for new panama coup efforts + in addition both administration and congressional officials said the need for guidelines on coups and assassinations was partly spurred by a white house desire to avoid nasty overseas surprises during the election campaign + though the assassination ban is a white house order that congress never voted on the intelligence committees can exercise influence over its interpretation + last week central intelligence agency director william webster publicly called on congress to provide new <unk> of the assassination order that would permit the u.s. more freedom to act in coups + the administration has reacted to criticism that it <unk> the latest coup attempt by seeking to blame congress for restrictions the white house said have hampered its freedom of action + however last week mr. webster 's two top cia deputies said congressional curbs had n't hampered the spy agency 's role in the coup attempt in panama + nevertheless the administration 's criticisms appeared to have made some <unk> with sens. boren and cohen after their oct. N meeting with the president + the three men agreed to rewrite the guidelines without changing the basic assassination ban to clear up any <unk> that may have hampered u.s. encouragement of coups against <unk> leaders + the new argument over the notification guideline however could sour any atmosphere of cooperation that existed + gerald f. <unk> contributed to this article + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + mutual funds arrived in the u.s. during the <unk> <unk> they had been in britain for a century but they did n't boom until the money market fund was created in the 1970s + by N there were more than N such funds + besides creating a vehicle for investors money market funds also helped rewrite banking regulations + the idea was to let small investors the <unk> of the fund business deal in the money market 's high short-term interest rates + this had been the exclusive province of those rich enough to use <unk> sums to get income that was figured beyond the third or fourth <unk> place + the <unk> price of $ N a share came about by accident + an early fund had filed a registration with the securities and exchange commission that included a fixed $ N price + it arrived just as the regulator handling such operations was retiring + his successor approved the $ N price in the process of clearing the <unk> papers on his desk + when dreyfus started the first <unk> retail fund in february N it was priced at $ N a share and reached $ N billion in assets in one year + dreyfus moved to the $ N price after the sec set standards an average <unk> maturity of high-grade paper that are still the rule + keeping the listed price at a dollar is primarily a convenience + actually the funds do <unk> but beyond the third <unk> place + <unk> keeps them at $ N + eventually the money funds ' success forced <unk> of curbs on bank interest rates to allow banks to offer competing yields + the new instrument also introduced many to the industry N N of fund owners there are more than N million accounts started with a money fund + today more than N money market funds have total assets exceeding $ N billion + the companion tax-exempt funds add $ N billion + dreyfus alone has seen its money market funds grow from $ N billion in N to closes to $ N billion today + procter & gamble co. and noxell corp. said they received early termination of the waiting period under the hart-scott-rodino act regarding the proposed $ N billion merger of noxell into p&g + shareholders of noxell of hunt valley md. will vote on the merger at a special meeting on nov. N the companies said + p&g cincinnati agreed to exchange N share of its common stock for each share of noxell common and class b stock a total of about N million p&g shares + the transaction would mark the entry of p&g into cosmetics + the company already markets a wide range of <unk> food household and health-care products + shareholders of <unk> g.m.b h. postponed their formal endorsement of a merger with daimler-benz ag until another meeting on nov. N + the owners of the defense and aerospace concern which include three regional states several industrial companies and banks met friday to discuss the final terms of the transaction in which daimler-benz will acquire N N of + but agreement <unk> could n't be reached because of opposition from the states of <unk> and <unk> which are demanding more influence over the german airbus operations and a better guarantee against job losses in the troubled northern german region + the two states and the state of <unk> still hold a majority in <unk> but their stake will fall to around N N after daimler-benz acquires its stake in the concern + jeffrey e. <unk> was named vice president and chief economist of this commodity futures and options exchange + he had been associate professor in the department of finance at <unk> hall university + sierra tucson cos. said it completed its initial public offering of N million common shares which raised $ N million + the tucson ariz. operator of <unk> centers said proceeds will be used for expansion to pay debt and for general corporate purposes + oppenheimer & co. was the lead underwriter + the government issues its first reading on third-quarter real gross national product this week in a report that is expected to disclose much <unk> inflation + the consensus view on real gnp the total value of the nation 's output of goods and services adjusted for inflation calls for a N N gain down from the second quarter 's N N according to <unk> international a unit of mcgraw-hill inc. new york + but inflation as measured by the gnp deflator in thursday 's report is expected to rise only N N down from N N in the second quarter + inflation could be a real surprise said samuel d. <unk> chief financial economist at kleinwort benson government securities inc. in chicago + if that gets people excited it could serve as an impetus to the fixed-income markets to lower their rates he added + the week 's other notable indicators include mid-october auto sales september durable goods orders as well as september personal income personal consumption and the saving rate + most are expected to fall below <unk> levels + many economists see even slower gnp growth for the remainder of the year with some <unk> more strongly toward a possible recession + in addition to softer production data weaker housing starts and lower corporate profits currently in evidence some analysts believe the two recent natural disasters hurricane hugo and the san francisco earthquake will carry economic <unk> in the fourth quarter + the recent one-day 190-point drop in the dow jones industrial average seems to be significant to economists mainly for its <unk> comment on the poor quality of third-quarter profits now being reported + the stock market is sick because profits are crumbling says michael k. evans president of evans economics inc. washington + the economy he noted moves the market not vice <unk> + on the other hand mr. evans expects the hurricane and the earthquake to take a <unk> out of fourth-quarter gnp + his estimate of N N for third-quarter gnp is higher than the consensus largely because he believes current inventories are n't as low as official figures indicate + demand he believes is being met from <unk> rather than new production + by and large economists believe the two natural catastrophes will limit economic damage to their regions + edward j. campbell economist at brown brothers <unk> & co. new york noted that large increases in construction activity along with government and private relief efforts could offset loss of production in those areas + gary <unk> economist at <unk> financial group <unk> r.i. expects the deflator to rise N N well below the second quarter 's N N partly because of what he believes will be temporarily better price behavior + he expects real gnp growth of only N N for the quarter noting a wider trade deficit slower capital and government spending and the lower inventory figures + sung won <unk> chief economist at <unk> corp. minneapolis holds that the recent stock-market volatility increases the possibility of economic recession and <unk> the bad news from recent trade deficit employment and housing reports + the consensus calls for a N N increase in september personal income and a N N gain in consumption + in august personal income rose N N and personal consumption increased N N + charles <unk> managing director of financial markets <unk> at manufacturers hanover securities corp. new york said <unk> hugo <unk> N N to N N from <unk> growth because of greatly diminished rental income from tourism + durable goods orders for september due out tomorrow are expected to show a slip of N N compared with august 's N N increase + as usual estimates on the <unk> report are wide running from a drop of N N to a gain of N N + hastings manufacturing co. declared a regular quarterly dividend of N cents a share and an extra dividend of five cents a share on its common stock payable dec. N to shares of record nov. N + this is the <unk> consecutive quarter in which the company has paid shareholders an extra dividend of five cents + the hastings mich. concern makes <unk> <unk> filters and fuel <unk> + vickers plc a united kingdom defense and engineering company said an investment unit controlled by new zealand financier ron <unk> raised its stake in the company friday to N N from about N N thursday and from N N the previous week + <unk> securities ltd. a unit of mr. <unk> 's hong <unk> industrial equity pacific ltd. boosted its holdings in vickers to N million shares + the latest purchase follows small increases in his holdings made over the past five months + in may mr. <unk> 's stake shrank to N N after ranging between N N and N N for much of the previous year + ron <unk> clearly views our company as a good investment a vickers spokesman said + the spokesman refused to comment on speculation that industrial equity might use its interest as a platform to launch a hostile bid for the company + vickers makes tanks for the u.k. army rolls <unk> cars and has marine and medical businesses + when <unk> andersson set out to revive <unk> swedish conglomerate trelleborg ab in the early 1980s he <unk> the advice of trendy management consultants + all these consultants kept coming around telling us we should concentrate on high technology electronics or biotechnology and get out of mature basic industries mr. andersson recalls + yet under its 45-year-old president trelleborg moved aggressively into those <unk> base industries first strengthening its existing rubber and plastics division later adding mining as well as building and construction materials + it was a <unk> move for a <unk> executive fired after only two months as president of his previous company + but going against the grain has never bothered mr. andersson + <unk> his trademark white <unk> during a recent interview the <unk> <unk> <unk> it turned out to be lucky for us + if the whole market thinks what you 're doing is crazy you do n't have much competition + mr. andersson is anxious to strengthen trelleborg 's balance sheet + <unk> he did n't waste much time getting started + on tuesday trelleborg 's directors announced plans to spin off two big divisions minerals processing and building and distribution as separately quoted companies on stockholm 's stock exchange + at current market prices the <unk> public offerings to be completed next year would add an estimated N billion swedish kronor $ N million to trelleborg 's <unk> analysts say + the board had also been expected to approve a <unk> billion international offering of new trelleborg shares + but that share issue intended to make trelleborg better known among international investors was postponed until market conditions stabilize people familiar with the situation say + trelleborg 's internationally traded <unk> series stock plunged <unk> $ N to <unk> $ N in volatile trading monday in stockholm + tuesday the shares regained <unk> closing at <unk> + mr. andersson says he is confident that taking parts of the company public will help <unk> the conglomerate <unk> that has held down trelleborg 's share price + trelleborg plans to remain the dominant shareholder with stakes of slightly less than N N of both units + the spinoff should solve a problem for the parent + a family foundation set up by late founder henry <unk> controls N N of trelleborg 's voting shares outstanding + but the foundation <unk> require the entire trelleborg stake to be sold in the open market if control drops below N N + that possibility had <unk> closer as repeated new share offerings to finance trelleborg 's rapid growth steadily diluted the foundation 's holding + that growth is the result of mr. andersson 's shopping spree during which he has bought and sold more than N companies during the past five years + most of the new additions were barely profitable if not outright loss makers + applying <unk> gained during earlier <unk> at <unk> maker ab <unk> mr. andersson and a handful of loyal <unk> aggressively stripped away dead wood and got quick results + the treatment turned trelleborg into one of <unk> 's biggest and fastest-growing industrial concerns + between N and N sales <unk> more than N times and pretax profit surged almost <unk> + many analysts expect mr. andersson who owns N N of the company to be named trelleborg 's new chairman when ernst <unk> steps down next year + but the promotion is n't likely to alter a management style mr. andersson describes as being the driving force leading the troops not managing by sitting back with a <unk> waiting for people to bring me ideas + last month in his <unk> move yet mr. andersson and trelleborg joined forces with canada 's noranda inc. in a joint $ N billion hostile takeover of another big canadian mining concern falconbridge ltd + industry analysts suggest that the <unk> of falconbridge could vault trelleborg from a regional <unk> success story to a <unk> mining concern + trelleborg is n't in the same league yet as mining giants such as <unk> corp. or <unk> corp. says mike <unk> a mining analyst at james capel & co. london + but we certainly like what we 've seen so far + but trelleborg still must clear some tough hurdles + mr. andersson acknowledges that the company 's mining division will be busy for a while <unk> its recent expansion + booming metals prices have fueled trelleborg 's recent profit surge raising mining 's share of pretax profit to N N this year from a big loss two years earlier + but analysts caution an expected fall in metal prices next year could slow profit growth + mining is likely to remain trelleborg 's main business + analysts say its chances of success will likely <unk> on how well trelleborg manages to cooperate with noranda in the falconbridge venture + noranda and trelleborg each came close to winning falconbridge alone before the successful joint bid + some analysts say noranda would prefer to break up falconbridge and that the <unk> relatively <unk> in international mining operations could have problems holding their own with a much bigger partner like noranda operating on its home turf + mr. andersson insists that trelleborg and noranda have n't discussed a falconbridge <unk> + falconbridge he says will continue operating in its current form + we 'd be reluctant to accept N ownership in a manufacturing company + but such partnerships are common in mining where there are n't problems or conflict of interest or risk of cheating by a partner trelleborg 's president says + perhaps more important both companies share mr. andersson 's belief in the coming renaissance of base industries + if the 1980s were a decade of consumption the <unk> will be the investment decade mr. andersson says + the whole of europe and the industrialized world is suffering from a breakdown in infrastructure investment he says + that 's beginning to change + and investment is the key word for base metals and most other businesses trelleborg is in + apple computer inc. posted improved fiscal fourth-quarter profit due largely to a $ N million gain on the sale of its stock in adobe systems inc + excluding the gain the company registered a modest N N increase for the quarter ended sept. N to $ N million or N cents a share from the year-earlier $ N million or N cents a share + proceeds of the adobe sale brought net income in the quarter to $ N million or $ N a share + apple shares fell N cents in over-the-counter trading to close at $ N a share + fiscal fourth-quarter sales grew about N N to $ N billion from $ N billion a year earlier + without the adobe gain apple 's full-year operating profit edged up N N to $ N million or $ N a share from $ N million or $ N a share + including the adobe gain full-year net was $ N million or $ N a share + sales for the year rose nearly N N to $ N billion from $ N billion a year earlier + john <unk> chairman and chief executive officer credited the <unk> <unk> and <unk> computers introduced in the winter for the <unk> sales performance + mr. <unk> also indicated that sagging margins which dogged the company through most of N began to turn up in the fourth quarter as chip prices eased + adverse pressure on gross margins has <unk> mr. <unk> said + margins in the fiscal fourth quarter <unk> up rising to N N from N N a year earlier + for all of fiscal N however the average gross margin was N N below the average N gross margin of N N + lower component costs especially for <unk> or dynamic random access memory chips were cited for the easing of margin pressure on the company a spokeswoman said + looking ahead to N mr. <unk> predicted another year of significant revenue growth along with improved profitability as the recovery in gross margins continues into N + gary j. <unk> N years old was named president and chief operating officer + <unk> makes <unk> materials that it describes as plastic wood + the operating chief 's post is new + martin <unk> N who had been president was named vice chairman + he remains chief executive officer + mr. <unk> was vice president and chief operating officer of the <unk> division of <unk> technology corp + separately the board expanded to six members with the election of david l. <unk> a consultant + the company also said it privately placed stock and warrants in exchange for $ N + terry l. <unk> formerly general manager of canadian operations was elected to the new position of vice president north american sales of this plastics concern + also larry a. <unk> executive vice president north american operations was named head of the company 's international automotive operations another new position + he remains an executive vice president the company said and his new position reflects the growing importance of the world automotive market as a market for a. <unk> 's high performance plastic materials + gordon <unk> will succeed mr. <unk> as manager of canadian operations and mr. <unk> 's former position is n't being filled at this time the company said + general electric co. said it signed a contract with the developers of the ocean state power project for the second phase of an independent $ N million power plant which is being built in <unk> <unk> + ge along with a division of <unk> a subsidiary of enserch corp. have been building the first <unk> phase of the project which they expect to complete in late N + the second portion will be completed the following year + ge 's power generation subsidiary will operate and maintain the plant upon its completion + the environmental protection agency is getting a lot out of the superfund program + of the $ N billion spent so far on the program N N is going for administrative costs management and research the office of technology assessment just reported + only N of N priority cleanup sites have been <unk> + over the next N years $ N billion is earmarked for the program + at current <unk> that means epa will be spending $ N billion on itself + it may not be toxic but we know where one waste dump is + chambers development co. said its security bureau inc. unit purchased two security concerns in florida that will add $ N million of annual revenue + purchase of the businesses serving miami fort <unk> and west palm beach fla. is part of a plan by chambers to expand in the growing security industry + terms were n't disclosed + <unk> ag said it moved its headquarters for latin america to mexico and the headquarters for the <unk> regional division to singapore effective <unk> + the central offices for both regions were previously located in <unk> <unk> headquarters + the west german chemical concern called the moves a further step in the <unk> of its business activities + both regions are the fastest-growing areas for <unk> the company said + david h. <unk> N years old was named president and chief operating officer of <unk> 's <unk> peoples drug stores inc. unit based in <unk> va + mr. <unk> was senior executive vice president and chief operating officer + <unk> is a tobacco retailing restaurant and financial services concern + lotus development corp. is in talks to sell its signal <unk> service to <unk> inc. the new york parent of financial news network people familiar with the negotiations said + they said the price would be around $ N million + signal which has an estimated N subscribers and is profitable provides stock quotes over an fm radio band that can be received by specially equipped personal computers + the computers will display stock prices selected by users + lotus cambridge mass. has been rumored to have the sale of the four-year-old unit under consideration for a year + the business is n't related to lotus 's main businesses of making computer software and publishing information on compact disks + please submit your offers says <unk> <unk> jr + he surveys the prospective investors gathered in the board room of the philippine government 's asset privatization trust for the sale of a N N interest in the country 's largest paper mill + the agency expects the bids to be equivalent of more than $ N million + not a <unk> is offered + mr. <unk> the trust 's associate executive trustee declares the bidding a failure + it 's getting harder to sell he <unk> as he leaves the room + indeed recently the trust failed to auction off the paper mill a bank an office building and a small <unk> plant + of the four only the bank and the plant drew bids one apiece + in october N president <unk> aquino vowed that her government would get out of business by selling all or part of the state 's holdings in the many companies taken over by the government during the 20-year rule of ferdinand marcos + two years later mrs. aquino 's promise remains largely <unk> + october is a critical month for the privatization program + manila is offering several major assets for the first time and is trying to conclude sales already arranged + in addition the government is scheduled to unveil plans for <unk> philippine airlines the national carrier an effort that lawyer and business columnist <unk> <unk> calls the bellwether of privatization + all told there are assets on the line valued at up to $ N billion + the privatization program is designed to rid the government of hundreds of assets and to raise <unk> needed funds + much of the money from the sales is earmarked for a multibillion-dollar <unk> program + but efforts have been <unk> by official <unk> bureaucratic resistance a legal system that operates at a <unk> 's pace political opposition and government <unk> + most recently a lack of buyers has been added to the list + rather than gathering momentum the program is in danger of slowing even more as the government <unk> several big assets + the <unk> appears to be that the more valuable the asset the harder the privatization process + you just do n't see a whole lot happening says an international economist + to be sure the program has n't completely stalled + the asset privatization trust the agency <unk> responsible for selling <unk> properties has recorded sales of more than $ N million since it began <unk> in december N + but its success has been largely in the sale of small nonperforming companies which are valued for their assets + dealing with the sales this month could be particularly challenging because almost every problem that has <unk> the program in the past is <unk> up again + <unk> garcia the asset trust 's executive trustee admits to what he calls temporary setbacks + in light of the poor results recently he says the agency is adopting an attitude of flexibility + october 's troubles began when the trust failed to sell a state-owned commercial bank associated bank for the minimum price of N million <unk> $ N million + at the end of the month the agency again will offer the bank + but instead of a minimum price only a target price will be established + bankers say however that the government may have difficulty selling the institution even without a floor price + the bank has a negative net worth they say + in addition special bidding rules give the bank 's former owner <unk> <unk> the right to match the highest bid + mr. <unk> lost control to the government in N when a government bank made emergency loans to the <unk> institution + in N the loans were converted into equity giving manila N N of the bank but with the understanding that mr. <unk> had repurchase rights + his ability to match any bid has scared off many potential buyers + separately the government will try again within a month to sell the N N stake in paper industries corp. of the philippines or picop as the paper mill is known + the price will depend on how much picop shares fetch on the local stock market + but according to bankers and stock analysts who have studied the paper mill price is n't the only consideration + as it stands now the government would continue to hold N N of picop after the N N stake is sold + about N N of picop is publicly traded and other shareholders own the rest of the equity + potential buyers mostly foreign companies are reluctant to take a <unk> stake in a company that by the government 's own <unk> needs some $ N million in new capital for rehabilitation + the prospect of buying into a <unk> company without getting management control persuaded at least three foreign buyers including a member of the elders group of australia to pull out of the bidding the bankers and analysts say + mr. garcia acknowledges the problem and says the asset trust will study why the bidding failed and what changes the agency may be able to offer + under government regulations however foreign ownership of picop 's equity is limited to N N + even though the government would retain the N N stake in picop critics have accused the trust of selling out to foreigners + a series of newspaper articles accused the trust of <unk> the government over the picop sale + mr. garcia says he has been notified of congressional hearings on the picop bidding and possible legislation covering the paper mill 's sale both prompted by the criticism of the agency + the question of control could further <unk> <unk> plans for the government to <unk> itself of philippine airlines in which it has a N N stake + the carrier has valuable <unk> and asian routes but it remains <unk> and poorly managed + this maker of electronic measuring devices named two new directors increasing board membership to nine + the new directors are gordon m. <unk> president and chief executive officer of <unk> inc. and peter s. <unk> chairman and chief executive officer of <unk> services inc + gerard e. wood N years old was elected president chief executive officer and a director of this minerals and materials company + he succeeds harry a. <unk> N who is retiring from active duty but remains a director and consultant + mr. wood has been president and chief executive of steep rock resources inc + eagle financial corp. and webster financial corp. two connecticut savings bank-holding companies agreed to merge in a tax-free stock transaction + the new holding company <unk> bancorp inc. will have about $ N billion of assets and N banking offices in connecticut + tangible capital will be about $ N million + the merger is subject to regulatory clearance and a definitive agreement + in the merger each share of webster based in <unk> will be converted into one share of the new company + each share of eagle based in <unk> will become N share of <unk> + in american stock exchange composite trading friday eagle shares rose N cents to $ N + in national over-the-counter trading webster shares fell N cents to $ N + webster has N million shares outstanding and eagle N million + their indicated market values thus are about $ N million and $ N million respectively + frank j. <unk> chairman of eagle will be chairman of the new firm and james c. smith president and chief executive officer of webster will take those posts at <unk> + harold w. smith sr. chairman of webster will become chairman <unk> and a director of the new company + ralph t. <unk> vice chairman of eagle will become vice chairman of <unk> + the board will be made up of seven directors of each holding company + in an interview james smith said the banks ' markets are <unk> and their business <unk> are similar and conservative + nonperforming loans will make up only about N N of the combined banks ' total loans outstanding he said + at june N webster which owns first federal savings & loan association of <unk> had assets of $ N million + eagle which controls <unk> federal savings bank and first federal savings & loan association of <unk> had assets of $ N million on that date + <unk> ortiz 's sept. N <unk> column mexico 's been <unk> by the privatization <unk> is a <unk> clear statement of his government 's commitment to privatization and must be welcomed as such by all americans who wish his country well + the <unk> states institute is glad to see such a high official as mexico 's undersecretary of finance view his country 's reforms in the context of a larger world-wide process of <unk> change toward free-market economics especially in the <unk> countries + having said that we must caution against an apparent tendency to <unk> the case + it is not quite true for example that the mexican government has privatized <unk> de <unk> as mr. ortiz claims + in the same sentence he <unk> himself when he reports that the government still retains N N of the total equity of the airline + how can a company be considered privatized if the state is so heavily represented in it + true the mexican government has granted control over the airline to a new private consortium but its <unk> to take back what it gives is too well known to permit one to be <unk> + <unk> too mr. ortiz resorts to the familiar numbers game when he boasts that fewer than N state enterprises currently remain in the public sector down from the N public entities that existed in N + but the enterprises still in state hands include the biggest and most economically powerful ones in mexico indeed they virtually constitute the economic infrastructure + i refer essentially to petroleum electric power banking and newsprint + those enterprises however are not going to be privatized + they are officially considered strategic and their privatization is prohibited by the mexican constitution + in language that <unk> the issue mr. ortiz writes the divestiture of <unk> and <unk> public enterprises is an essential element of president carlos salinas 's plan to modernize mexico 's economy + yet clearly modernization must <unk> its key industries before it can be said to have caught the privatization <unk> + the bottom line however is not economic but political reform + a long succession of mexican presidents <unk> <unk> whatever industry they took a fancy to without having to answer to the public + to guarantee that <unk> de <unk> and other companies will really be privatized mexico needs a <unk> political system that will ensure democracy and hence accountability + daniel james president <unk> states institute + the board of this <unk> puerto rico concern voted to suspend payment of its quarterly of N cents a share for the third quarter + the third-largest thrift institution in puerto rico also said it expects a return to profitability in the third quarter when it reports operating results this week + <unk> federal said the dividend was suspended in anticipation of more <unk> capital requirements under the financial institutions reform recovery and enforcement act of N + a labor-management group is preparing a revised buy-out bid for united airlines parent ual corp. that would transfer majority ownership to employees while leaving some stock in public hands according to people familiar with the group + the group has been discussing a proposal valued in a range of $ N to $ N a share or $ N billion to $ N billion + but to avoid the risk of rejection the group does n't plan to submit the plan formally at a ual board meeting today + instead the group is raising the proposal <unk> to try to test the board 's reaction + people familiar with the company say the board is n't likely to give quick approval to any offer substantially below the $ 300-a-share $ N billion buy-out bid that collapsed last week after banks would n't raise needed loans and after a key partner british airways plc dropped out + in composite trading friday on the new york stock exchange ual closed at $ N a share down $ N + but the pilots union which has been pushing for a takeover since N appears to be pressing ahead with the revised bid to avoid further loss of momentum even though it has n't found a partner to replace british air + although the bidding group has n't had time to develop its latest idea fully or to discuss it with banks it believes bank financing could be obtained + after the collapse of the last effort the group does n't plan to make any formal proposal without <unk> commitments from banks covering the entire amount to be borrowed + under the type of transaction being discussed the <unk> group would borrow several billion dollars from banks that could then be used to finance a cash payment to current holders + those current holders would also receive minority interests in the new company + for example the group could offer $ N a share in cash plus stock valued at $ N a share + ual currently has N million shares fully diluted + the new structure would be similar to a recapitalization in which holders get a special dividend yet retain a controlling ownership interest + the difference is that current holders would n't retain majority ownership or control + the failed takeover would have given ual employees N N voting control of the nation 's second-largest airline with management getting N N control and british air N N + it was n't clear how the ownership would <unk> up under the new plan but employees would keep more than N N + management 's total could be reduced and the public could get more than the N N control that had been earmarked for british air + one option the board is likely to consider today is some sort of <unk> period + although the pilots are expected to continue to pursue the bid ual chairman stephen wolf may be asked to withdraw from the buy-out effort at least temporarily and to return to running the company full time + the board could eventually come under some pressure to sell the company because its members can be ousted by a majority shareholder vote particularly since one-third of ual stock is held by takeover stock speculators who favor a sale + the labor-management buy-out group plans to keep its offer on the table in an apparent attempt to maintain its bargaining position with the board + however the only outsider who has emerged to lead such a shareholder vote los angeles investor marvin davis who triggered the buy-out with a $ N billion bid in early august is hanging back apparently to avoid being blamed for contributing to the deal 's collapse + three top advisers to mr. davis visited new york late last week at least in part to <unk> with executives at citicorp + mr. davis had paid $ N million for citicorp 's backing of his last bid + but citicorp has lost some credibility because it also led the unsuccessful effort to gain bank loans for the labor-management group + on friday british air issued a statement saying it does not intend to participate in any new deal for the acquisition of ual in the foreseeable future + however several people said that british air might yet <unk> the bidding group and that the carrier made the statement to answer questions from british regulators about how it plans to use proceeds of a securities offering previously earmarked for the ual buy-out + also late last week ual flight attendants agreed to participate with the pilots in <unk> a revised offer + but the machinists union whose opposition helped scuttle the first buy-out bid is likely to favor a recapitalization with a friendly <unk> investor + one advantage the buy-out group intends to press with the board is that pilots have agreed to make $ N million in annual cost concessions to help finance a bid + speculation has also <unk> that the ual executive most closely identified with the failure to gain bank financing chief financial officer john pope may come under pressure to resign + however people familiar with the buy-out group said mr. pope 's departure would weaken the airline 's management at a critical time + despite the buy-out group 's failure to obtain financing ual remains obligated to pay $ N million in investment banking and legal fees to the group 's advisers lazard <unk> & co. salomon brothers inc. and paul weiss <unk> <unk> & garrison + whittle communications limited partnership <unk> tenn. will launch its first media property targeting hispanic women + la <unk> de <unk> or today 's family will debut this spring and will combine a national <unk> magazine and tv programming + the television element of la <unk> includes a series of <unk> <unk> features to air seven days a week on the <unk> <unk> network a unit of <unk> holdings inc. which is <unk> by <unk> cards inc + the features will focus on <unk> family health and <unk> and financial management and will carry N seconds of advertising + the magazines also <unk> will be distributed in more than N doctors ' offices <unk> and health centers in hispanic and largely hispanic communities + weirton steel corp. said it completed a $ N million sale of 10-year notes the final step in the N buy-out of the company from national steel corp + the N N N notes were priced at N N to yield N N in an offering managed by bear stearns & co. shearson lehman hutton inc. and lazard <unk> & co. the company said + weirton of weirton w. va. said $ N million of the proceeds were used to <unk> the remaining amounts on the note outstanding to national intergroup inc. the parent of national steel + remaining proceeds were used to pay other debt and to finance the company 's capital spending program + <unk> group plc of britain which holds a N N stake in profit systems inc. said it is considering courses of action that could result in its having active control of the company + in a filing with the securities and exchange commission <unk> group said a possible course of action may include acquiring some or all of the profit systems shares it does n't already own + it noted however that it has n't determined any specific terms of a possible transaction + <unk> group and affiliates currently control N profit systems common shares or N N the filing said + profit systems valley stream n.y. is an air freight <unk> concern + u.s. official reserve assets rose $ N billion in september to $ N billion the treasury department said + the gain compared with a $ N billion decline in reserve assets in august to $ N billion the department said + u.s. reserve assets consist of foreign currencies gold special drawing rights at the international monetary fund and the u.s. reserve position its ability to draw foreign currencies at the imf + the nation 's holdings of foreign currencies increased $ N billion in september to $ N billion while its gold reserves were virtually unchanged at $ N billion + u.s. holdings of imf special drawing rights last month rose $ N million to $ N billion and its reserve position at the imf increased $ N million to $ N billion + <unk> of america inc. plans to sell its consolidated aluminum corp. subsidiary as part of its strategy to focus more on aluminum packaging in the u.s. + <unk> of new york declined to say how much it expects to get for the unit the company has hired first boston corp. to help identify bidders + <unk> is a subsidiary of swiss <unk> ltd. a zurich switzerland producer of aluminum chemicals and packaging products + consolidated which had N revenue of $ N million makes aluminum sheet and <unk> products at its <unk> ohio and jackson tenn. rolling mills and <unk> aluminum at a plant in <unk> run <unk> + manhattan national corp. said michael a. conway president and chief executive officer was elected chief executive of the holding company 's two principal insurance subsidiaries + he succeeds paul p. <unk> jr. who resigned to pursue other business interests the company said + mr. conway N years old was elected chairman president and chief executive of manhattan life insurance co. and president and chief executive of manhattan national life insurance co + harry <unk> N chairman of the holding company also remains chairman of manhattan national life insurance co + mr. conway was executive vice president and chief investment officer of union central life insurance co. of cincinnati in N when union central bought a N N interest in manhattan national corp + he resigned as an officer of central life to accept the manhattan national presidency + daniel j. <unk> a director of first illinois corp. said that in august he reduced his stake in first illinois to N N of the common shares outstanding + in a filing with the securities and exchange commission mr. <unk> said he sold N first illinois common shares from aug. N to aug. N for $ N to $ N a share + as a result of the sales he holds N shares + mr. <unk> said in the filing that he sold the stock to decrease his position in the <unk> ill. banking concern + he may sell more shares in the open market or in private transactions but would n't rule out changing his intentions and buying shares the filing said + <unk> life systems inc. minneapolis said a federal appeals court vacated an earlier summary judgment in its favor + a lower court in st. paul had ruled in september N that a heart <unk> <unk> manufactures does n't <unk> on a patent owned by advanced cardiovascular systems a unit of eli lilly & co + <unk> said the appeals court <unk> the case back to the district court for further proceedings + in national over-the-counter trading friday <unk> shares tumbled $ N to $ N + <unk> said it remains committed both to the vigorous defense of its position that the <unk> does n't <unk> the lilly unit 's patent and to the pursuit of its own <unk> which <unk> lilly engaged in antitrust violations and other <unk> acts + a revised bid for ual is being prepared by a labor-management group sources said + the new proposal which would transfer majority ownership of united air 's parent to employees and leave some stock in public hands would be valued at $ N to $ N a share or as much as $ N billion + but ual 's board is n't expected to give quick approval to any offer substantially below the $ 300-a-share bid that collapsed recently + takeover stock speculators have incurred paper losses of over $ N million from the failed ual offer their worst loss ever on a single deal + ford and saab ended talks about a possible alliance after ford concluded that the cost to modernize saab 's car operations would outweigh the likely return + the collapse friday prompted speculation that ford would intensify its pursuit of jaguar which is negotiating a defensive alliance with gm + stock prices edged up in quiet trading friday + the dow jones industrials rose N to N making the gain for the week a record N points or N N + most bond prices fell but junk bonds and the dollar rose + new york city bonds were sold off by many investors last week amid political and economic uncertainty + more banks are being hurt by arizona 's worsening real-estate slump + first interstate bancorp of los angeles said friday it expects a $ N million quarterly loss citing <unk> losses at its arizona unit + opec 's ability to produce more oil than it can sell is starting to cast a shadow over world oil markets + opec officials worry that prices could collapse a few months from now if the group does n't adopt new quotas + saatchi & saatchi has attracted offers for some of its advertising units but has rejected them sources said + the proposals from suitors including interpublic group come as the london-based ad giant struggles through its most difficult period ever + qintex australia suffered another setback friday when its los angeles-based affiliate filed for chapter N protection + qintex 's $ N billion pact to buy mgm\/ua collapsed recently + kodak entered the high-definition television market by <unk> a device that can convert conventional film into high-definition video + a handful of small u.s. firms are refusing to <unk> the <unk> market to japanese manufacturers + freight rates are <unk> out and starting to rebound + trucking shipping and air-freight firms are all planning rate increases reflecting higher costs and tightened demand + texaco has purchased an <unk> company in texas for $ N million + it is texaco 's first major acquisition since the legal battle with pennzoil began over four years ago + winnebago posted a widened quarterly loss and slashed its dividend in half reflecting the <unk> slowdown in recreational vehicle sales + markets + stocks + volume N shares + dow jones industrials N up N transportation N off N utilities N up N + bonds + shearson lehman hutton treasury index N off + commodities + dow jones futures index N off N spot index N up N + dollar + N yen up N N marks up N + <unk> corp. a money-losing direct marketer of computer supplies and accessories said directors suspended payment of its semiannual dividend as too great a drain on funds + the company paid five cents a share in april + the directors ' action taken oct. N but announced friday had little or no effect on the company 's stock which <unk> at $ N in light over-the-counter trading + <unk> recently disclosed a $ N million write-off related to a corporate restructuring that resulted in the company 's posting a $ N million net loss for the year ended july N compared with year-earlier profit of $ N million or $ N a share + sales rose N N to $ N million from $ N million + the board felt that the continued payment of our semiannual dividend was <unk> with recent operating results said kenneth a. <unk> president and chief executive officer + all our efforts are now focused on improving earnings to the point where we can fund additional <unk> development continue to invest in the business and <unk> the dividend he added + the company offers more than N parts and supplies directly to <unk> and <unk> users through catalog sales + the food and drug administration said american home products corp. agreed to recall certain generic drugs that were produced by its quantum <unk> unit in <unk> n.y + quantum stopped shipping the drugs last month following a federal investigation regarding information the company supplied to obtain three drug approvals + the fda requested the recall of quantum 's <unk> <unk> <unk> <unk> <unk> and <unk> <unk> <unk> because it said the size of the production runs submitted for testing to gain fda approval was in each case <unk> as much larger than it actually was + american home products based in new york agreed to recall four other products <unk> <unk> <unk> and <unk> because of concerns about data submitted in their original approval applications before the fda + no safety problems with the products are known the fda said + an fda <unk> said the drugs are still available under other brand names + last month american home products said it was <unk> production and distribution of all N of quantum 's generic drug products pending the completion of an <unk> internal audit + it also temporarily closed quantum because of the internal investigation as well as the fda 's ongoing inquiry + in new york stock exchange composite trading american home products rose N cents to $ N on friday + lyondell petrochemical co. said third-quarter net income fell N N to $ N million or N cents a share from $ N million a year earlier + year-earlier per-share results are n't applicable because the company went public in january + revenue rose N N to $ N billion from $ N billion + the petrochemical maker said the biggest reason earnings declined was a loss of production time and the increased costs associated with a temporary maintenance closing and expansion of an <unk> plant + like other refiners lyondell 's margins for chemicals and gasoline were narrower + while the company said chemical margins continued to worsen this quarter costs will be lower because the maintenance and <unk> are complete + in new york stock exchange composite trading friday lyondell was unchanged at $ N a share + four former <unk> corp. officials were acquitted of federal charges related to the miami-based company 's sale of <unk> including conspiracy to hide <unk> defects + jurors in u.s. district court in miami cleared harold <unk> a former executive vice president john <unk> a former vice president and stephen <unk> and dean <unk> who had been engineers with <unk> + earlier this year <unk> a maker of medical devices agreed to plead guilty to felony and <unk> charges related to the <unk> and to pay the government about $ N million in fines and other costs + <unk> sold its <unk> operations two years ago to <unk> holding ltd. of australia + papers + management and unions representing N employees at <unk> corp. 's toronto star reached a tentative contract agreement friday <unk> a strike by most employees of canada 's largest daily newspaper + members of the largest union representing N workers voted in favor of the pact yesterday + four other unions have yet to vote but their leadership also recommended approval + the pact proposes a N 1\/2-year contract with a raise of N N in the first year N N in the second and N N for the final six months + amgen inc. said its second-quarter earnings increased more than tenfold to $ N million or N cents a share due to increased sales of the company 's new <unk> drug for kidney patients + the thousand <unk> calif.-based biotechnology company reported a N N increase in revenue to $ N million for the quarter ended sept. N + in the year-ago period amgen reported net income of $ N or two cents a share on revenue of $ N million + for the six months the company reported a more than <unk> increase in earnings to $ N million or N cents a share from $ N or four cents a share a year ago + revenue rose N N to $ N million from last year 's $ N million + <unk> lawmakers approved a peace plan but aoun rejected it + lebanon 's parliament passed the <unk> accord to end the country 's 14-year-old conflict but the christian military leader <unk> the plan was full of <unk> + the arab <unk> pact drafted during three weeks of talks at the saudi <unk> resort of <unk> includes syrian proposals for at least a partial troop pullout from lebanon and guarantees an equal number of seats for <unk> and <unk> in the parliament + the rejection by aoun who has demanded a total and immediate <unk> of <unk> 's N troops puts the future of the agreement in doubt + northern california <unk> for earthquake-related traffic <unk> + as <unk> pressed their efforts after finding a <unk> in a collapsed freeway the san francisco bay area <unk> for hundreds of thousands of commuters seeking to avoid routes <unk> by last tuesday 's tremor + in oakland officials said the <unk> <unk> who spent four days <unk> in rubble was in critical condition with slight improvement + estimates of damage in the area visited friday by bush topped $ N billion + the baseball commissioner announced that the third game of the world series between the giants and the athletics would n't resume until friday + the u.s. is required to notify foreign <unk> of certain coup plans + under guidelines included in an exchange of letters between the reagan administration and the senate intelligence panel last year the u.s. must inform foreign <unk> of plans likely to endanger their lives + the existence of the policy became known after bush disclosed it to seven gop senators last week citing the plan as an example of congressional requirements the administration contends contribute to the failure of covert actions officials said + bush conceded that the requirement did n't affect a decision to lend only minor support to this month 's failed effort to oust panama 's noriega aides said + the shuttle atlantis 's crew prepared to return to earth today several hours earlier than planned to avoid high <unk> forecast at the landing site at edwards air force base calif + the five <unk> who <unk> gear and tested the spacecraft 's steering said they were <unk> about the touchy weather expected in the <unk> desert + commonwealth leaders issued a declaration giving south africa six months to deliver on <unk> to ease apartheid or face new <unk> + the <unk> organization meeting in malaysia called for tighter financial pressure immediately + britain 's prime minister thatcher alone <unk> + east germany 's leadership vowed swift action to ease travel to the west + despite the pledge by the communist <unk> tens of thousands of people across the country staged <unk> over the weekend to demand democratic freedoms + in leipzig more than N people met with local party officials to discuss internal changes + the senate convicted federal judge <unk> hastings of miami of eight impeachment articles removing him from the bench + the chamber voted N friday to <unk> the judge of perjury and bribery conspiracy + it marked the first time a u.s. official was <unk> on charges of which a jury had acquitted him + rep. garcia and his wife were found guilty by a federal jury in new york of <unk> $ N from wedtech corp. in return for official acts by the new york democrat + the jury also convicted them of <unk> in obtaining a $ N <unk> loan from an officer of the <unk> defense contractor + authorities in honduras launched an investigation into the cause of saturday 's crash of a <unk> jetliner that killed N of the N people aboard + the boeing N en route to honduras from costa rica via nicaragua <unk> into the hills outside <unk> as it approached the capital 's airport in high <unk> and low clouds + the u.s. and israel have been holding what an aide to prime minister shamir called intense telephone negotiations in an effort to bridge differences over mideast peace moves + the labor party meanwhile threatened to support a parliamentary motion to topple the coalition unless shamir showed flexibility on <unk> talks + nicaragua 's defense ministry said a group of contra rebels <unk> two trucks carrying troops in northern nicaragua killing N of the soldiers + the incident occurred saturday night + the sandinista government and the <unk> <unk> agreed in march to suspend offensive operations but there has been sporadic fighting + scientists have isolated a <unk> that may hold potential as a treatment for disruptions of the immune system ranging from <unk> rejection to <unk> and <unk> <unk> corp. said + the <unk> is the mouse version of a protein called the <unk> <unk> which directs the growth and function of white blood cells + died alfred <unk> N former president of the federal reserve bank of new york saturday in new <unk> conn + contel corp. said third-quarter net income increased N N to $ N million or N cents a share from $ N million or N cents a share as a result of strong growth in <unk> lines and long-distance minutes of use + the telecommunications company 's results included a one-time gain of $ N million or two cents a share from the sale of contel credit a leasing and financial-services subsidiary + revenue rose N N to $ N million from $ N million + <unk> quarterly profit increased N N to $ N million from $ N million while <unk> earnings declined N N to $ N million from $ N million + information systems posted a loss of $ N million compared with a loss of $ N million a year earlier + <unk> lines increased at an annualized rate of about N N and minutes of long-distance use rose about N N + a N N gain in operating profit in the quarter was offset by a N N boost in interest expense reflecting higher consolidated borrowings and interest rates + in new york stock exchange composite trading contel closed at $ N a share down N cents + in east germany where humor has long been the only way to express political criticism they 're not laughing about their new leader egon krenz + mr. krenz is such a <unk> figure that nobody has even come up with any good jokes about him + you have to have clear feelings about someone before you can make jokes says an east german mother of two who <unk> <unk> political <unk> with her friends + with krenz we just do n't know what to expect + mr. krenz does n't seem to be the <unk> <unk> many initially thought he was when the <unk> politburo member was selected last week to succeed erich honecker + but he does n't appear to be ready to make broad changes either + according to east germany 's <unk> news agency mr. krenz spoke to soviet leader mikhail gorbachev by telephone over the weekend and acknowledged east germany could learn from moscow 's glasnost policies + already last week mr. krenz started <unk> east germany 's heavily <unk> and <unk> boring news media + on thursday a day after he took office east german television broke into regular programming to launch a talk show in which viewers call in questions for a panel of officials to answer + the regular <unk> news program and daily newspapers are also getting a visible injection of <unk> glasnost + it was quite a shock says a <unk> east german <unk> + for the first time in my life i was n't sure whether i was listening to our news or west german television + other changes including easing restrictions on travel for east germans are expected + but whether such moves can win back the confidence of east germans who have taken to the streets by the thousands in recent weeks to demand democratic changes depends largely on whether they feel they can trust mr. krenz + and that 's a problem + mr. krenz is not only closely identified with his <unk> mr. honecker but also blamed for ordering violent police action against protesters this month and for <unk> china for sending tanks against student demonstrators + i hope he grows with the job says <unk> <unk> a <unk> <unk> in east berlin + the most important thing is that he have a chance + although mr. krenz is dedicated to east germany 's conservative <unk> of communism there is much about his style that sets him apart from his party <unk> + unlike mr. honecker who <unk> to <unk> people about socialist values mr. krenz enjoys asking questions + indeed one of his first actions as leader was to visit a <unk> machine factory on the <unk> of berlin and <unk> among the workers a la gorbachev + he was later shown on television <unk> questions + at one point he asked a worker whether he thought east germans were <unk> the country because of restrictive travel policies + the worker 's <unk> <unk> it 's more than just travel + people have a sense the government is ignoring the real problems in our society + the exchange was all the more remarkable in that authorities released television <unk> to western news agencies + this same tendency toward openness impressed a group of visiting u.s. congressmen this spring + rather than trying to <unk> us says one congressional aide who attended the <unk> meeting mr. krenz wanted to listen + rep. <unk> <unk> d. ala. one of the members of the delegation says he was particularly impressed by mr. krenz 's ready admission that east germany needed to change + he 's a very tough man but one who 's also open to arguments adds an aide to west german chancellor helmut kohl + but there 's another side to mr. krenz + born in a <unk> town in an area which is now part of poland he has dedicated his life to the party <unk> + he moved quickly through the ranks with the help of his <unk> mr. honecker and emerged as the heir apparent + barbara <unk> an expert on east germany at radio free europe in <unk> says mr. krenz may project a smooth image but she doubts he 's a true <unk> + even if he is she adds he appears to have only limited room for maneuver within the communist party 's ruling politburo + against this background the new east german leader must move quickly to shore up his government 's standing + the sudden growth of the opposition movement together with the steady <unk> of citizens <unk> through poland and hungary has plunged the country into its <unk> political crisis since an <unk> workers ' <unk> in N + he does n't have any <unk> period says a western diplomat based in east berlin + but if he 's sharp and quick he has a chance + the diplomat adds that mr. krenz has several things going for him + the east german economy is strong compared with other east bloc nations + and his relative youth could help him project a more <unk> image <unk> with the perception of mr. honecker as an <unk> old man + for average east germans mr. krenz remains a <unk> + either he was n't being real in the past or he is n't being real right now says a <unk> east german doctor + either way i have a problem with how quickly he 's changed + the doctor was among dozens of people <unk> through east berlin 's <unk> church saturday morning + the walls of the church are covered with <unk> news <unk> and <unk> notes associated with the country 's political opposition + i have to come here to read the walls says the doctor because it 's information i still ca n't get through the newspapers + meanwhile east germany 's growing openness may even allow the state-controlled news media to display a <unk> sense of humor + television last week carried a new report on east berlin 's main <unk> factory and the need to boost production + east germans remember a comment a few years ago by kurt <unk> the government 's top <unk> that just because a neighbor hangs new <unk> there 's no reason to change your own + his point was there is no reason for east germany to copy <unk> changes + it 's hard to know whether it was intended to be funny says the east berlin <unk> but everyone i know <unk> about it + the list of laboratories claiming to be producing <unk> amounts of heat from cold fusion experiments is slowly growing + but the experiments continue to be plagued by lack of firm evidence that the extra heat is coming from the <unk> of <unk> atoms + new experiments at some of the big national laboratories are still unable to find hints of nuclear fusion reactions leaving only the finding of tritium in a texas experiment to support university of utah <unk> ' claim of <unk> <unk> fusion at room temperatures + the latest developments in cold fusion research were presented in N reports delivered at the fall meeting here of the <unk> society the first scientific meeting in five months to hear formal reports on cold fusion experiments + the meeting offered stark evidence of a dramatic fall in scientific interest in cold fusion research + of the N <unk> registered for the society 's <unk> meeting fewer than N sat through the day and a half of cold fusion <unk> at week 's end + this was in contrast with the society 's meeting last may at the <unk> of the controversy when more than N scientists along with scores of reporters and tv crews crowded into a los angeles hotel <unk> for a tumultuous special night session on the subject + neither of the two <unk> whose utah experiments triggered the cold fusion <unk> martin fleischmann and b. stanley pons were at the meeting + but some members of an ad <unk> expert committee set up by the department of energy to evaluate the cold fusion research were in the audience + the committee is to recommend at the end of the month whether <unk> should support cold fusion research + most of the two dozen scientists taking the <unk> reported results with new more sophisticated variations of the seemingly simple <unk> experiments described last march by messrs. fleischmann and pons + the experiments involve <unk> a thin rod of palladium metal with a wire of platinum and plunging the two <unk> into heavy water in which the <unk> atoms are a <unk> heavy form known as <unk> + when an electric current is applied to the palladium and platinum <unk> the heavy water did begin to break up or <unk> + ordinarily the <unk> or breakup of the water would consume almost all of the electrical energy + but messrs. fleischmann and pons said their experiments also produced large amounts of heat + the heat energy plus the energy consumed by the breakup of the water <unk> added to far more energy coming out of the <unk> than electrical energy going in they reported + because they also detected tritium and indications of nuclear radiation they asserted that the excess heat energy must be coming from energy released by the nuclear fusion of <unk> atoms inside the palladium rod + as of last weekend a dozen labs also have reported measuring excess heat from similar <unk> experiments although amounts of such heat vary widely + one of the seven reports presented here of excess heat production was given by richard a. <unk> professor of chemical engineering at the university of minnesota + mr. <unk> said his skepticism of the utah claims was initially confirmed when his first experiments last spring failed to produce results + but he then borrowed a palladium rod from <unk> at texas <unk> who said they were getting excess heat + the results were <unk> he said + on the fourth run with the borrowed rod the experiment began producing excess heat + the experiment was stopped briefly to change an instrument + when it was <unk> heat output really took off and produced excess heat for several hours before dying down he said + typical of other experiments mr. <unk> said his experiment was very <unk> + it would go along doing nothing but <unk> the heavy water and then at totally <unk> times it would begin producing excess heat for as long as N or N hours before <unk> down + the excess heat was N N to N N more than the energy involved in the <unk> of water + mr. <unk> said the heat bursts were too large and too long to be explained by the sudden release of energy that might have slowly accumulated during the experiments ' <unk> times as some scientists have suggested + there is a reality to the excess energy he said + other scientists said they also were getting sporadic bursts of excess heat lasting several hours at a time + the bursts often occur they said after they <unk> the experiments by raising or lowering the amount of electric current being applied or switching the current off and on + one <unk> privately suggested this hinted that some <unk> chemical reactions might be producing the heat + one reason questions <unk> the heat experiments is that they involve unusually <unk> measurements + typically the input energy ranges from a third of a <unk> to one <unk> and the excess energy is measured in <unk> of a <unk> + one exception is a continuing experiment at stanford university where as much as N watts of energy are being put into the <unk> cells + a cell filled with heavy water is producing N to N watts more heat than an identical <unk> cell filled with ordinary water next to it reported <unk> m. <unk> an associate of materials scientist robert a. <unk> head of the stanford experimental team + one of the few hints the excess heat might be produced by fusion came from brief remarks by <unk> john <unk> of texas <unk> university + mr. <unk> previously reported getting bursts of excess heat and of <unk> increasing amounts of tritium forming in the heavy water + he said that within the past few days he 's gotten evidence that there is a weak <unk> between the time the heat bursts occur and the production of tritium + there is n't any way to <unk> measure the amount of tritium in the heavy water so it 's been difficult to tell whether the tritium formation is related to the heat bursts or some other phenomenon + increasingly careful attempts to measure neutrons which would be strong evidence of fusion reactions continue to be negative + messrs. fleischmann and pons initially reported indirect evidence of neutrons being produced in their experiment but later conceded the measurements were questionable + researchers at <unk> national laboratories in <unk> n.m. reported they went so far as to take a cold fusion experiment and three <unk> detectors into a tunnel under N feet of <unk> to shield the detectors from <unk> <unk> + a number of times they detected neutrons in one sometimes two of the three detectors but only once during N hours of the experiment did they detect a <unk> burst in all three detectors and they think that was a <unk> event + <unk> <unk> of los <unk> national laboratory said researchers there detected a burst of neutrons from an early cold fusion experiment last april but decided not to announce it until they could confirm it + in subsequent experiments one of two <unk> detectors occasionally indicated a burst of neutrons but <unk> bursts were never recorded in both detectors at the same time + they concluded the indications of neutrons stemmed from <unk> in the detectors rather than from the cold fusion experiment + at the lawrence berkeley laboratory in california new experiments indicated that the <unk> added to the heavy water so it will conduct a current can produce previously <unk> electrical effects on the surface of the palladium rod which messrs. fleischmann and pons might have <unk> reported philip ross from the california laboratory + dow jones & co. announced wall street journal advertising rates for N + the rates which take effect jan. N include a N N increase for national edition advertising + the journal also will offer expanded volume and frequency discounts + the increase for national edition advertising is less than the inflation rate and compares with a N N increase in N + newsprint and <unk> prices this year have not gone up said peter r. <unk> president of dow jones + we have invested in improved editorial quality and expanded our quality audience without substantially increasing our costs + fundamental fairness and a sense of responsibility lead us to share operating <unk> with our customers + advertising rates for the eastern midwest western and southwest editions will increase an average N N and rates for <unk> advertising editions will increase N N + rates for the wall street journal reports will remain unchanged + a one-time <unk> <unk> <unk> in the wall street journal national edition will cost $ N + advertising rates for the wall street <unk> published in brussels and printed in the netherlands and switzerland will increase N N + rates for the asian wall street journal published and printed in hong kong and also printed in singapore and tokyo will rise N N + rates for the asian wall street journal weekly published in new york for north american readers will rise N N + dow jones also publishes barron 's magazine other <unk> and community newspapers and operates electronic business information services + it owns N N of telerate inc. a leading supplier of computerized financial information on global markets + reflecting the impact of lower semiconductor prices and cuts in defense spending texas instruments inc. said third-quarter net income fell N N and sales dropped slightly from a year earlier + net fell to $ N million or N cents a common share from $ N million or $ N a share a year ago + sales fell N N to $ N billion from $ N billion + for the nine months the electronics and defense concern had net of $ N million or $ N a share down N N from $ N million or $ N a share in the year-ago period + sales were $ N billion up N N from $ N billion + jerry <unk> chairman president and chief executive officer said sluggish <unk> sales reduced demand for semiconductors + that coupled with lower semiconductor prices and higher <unk> expense contributed to the decline in sales and profit + in addition cost increases related to fixed-price defense contracts and a $ N million charge to reduce the work force of texas instruments ' <unk> division also reduced net + however the quarter results included $ N million in royalty income from patent licenses up from $ N million in the year-earlier period + the nine months include $ N million of royalty income up from $ N million last year + mr. <unk> was n't optimistic about the short-term outlook <unk> that further <unk> reductions may be needed + we expect near-term <unk> in the electronics market he said and we will take ongoing <unk> actions as necessary to keep operations aligned with demand + further he said an internal reorganization to combine several divisions into the information technology group is expected to affect fourth-quarter results by an undisclosed amount + lynch corp. said its lynch telephone corp. subsidiary completed the acquisition of western new mexico telephone co. for $ N million plus assumption of $ N million of debt + western new mexico telephone silver city had net income of $ N million on revenue of about $ N million last year + it is an independent phone company with a service area of N square miles in southwest new mexico + it is also a partner in the <unk> cellular franchise covering most of western new mexico + the transaction represents lynch 's entry into the telephone business + the company which has interests in television trucking services and <unk> and <unk> equipment said it plans to make other acquisitions in the telephone industry + nelson <unk> hunt 's attempted corner on silver a decade ago is still <unk> the market in this metal + silver now trading around $ N an ounce surged to an <unk> peak of $ N an ounce in january N from around $ N in <unk> + mr. hunt 's attempt to squeeze the silver market N years ago is still indirectly to blame for today 's market depression says <unk> edgar managing director of <unk> <unk> ltd. london bullion brokers + while some N million ounces of silver once held by mr. hunt and middle eastern associates are n't hanging over the market anymore the price surge of N <unk> an expansion of mine production and scrap recovery and encouraged silver consumers to <unk> on silver use mr. edgar says + photographic developers for example bought equipment to recover silver from spent photographs <unk> and processing solutions + meanwhile the photographic industry which accounts for N N of silver consumption continues to look for <unk> + japanese and u.s. photographic firms are beginning to produce electronic cameras and <unk> that do n't require silver dealers say + silver 's history of volatility is also discouraging investors dealers say + even in the present uncertain investment climate investors are <unk> quality assets such as treasury bills and bonds to gold silver and platinum dealers say + although prices rallied briefly following the tumble on world stock markets earlier this month and the related decline of the dollar precious metals are out of favor for the moment because of high interest rates and a determination by industrial nations to curb inflation dealers say + silver however is in a deeper slump than are gold and platinum + some analysts contend that silver is cheap now that prices are <unk> at levels last seen in the mid-1970s + bargain <unk> believe that silver offers the best value <unk> precious metals says frederick r. demler analyst at drexel burnham lambert inc + a further decline in prices will lead to mine production cuts in the u.s. he says + scrap merchants are converting smaller quantities of metal into silver while low prices are discouraging exports from india and the soviet union + silver prices could also be boosted by strikes in leading producing nations peru and mexico mr. demler says + meanwhile total fabrication demand for silver has risen six years in a row he says + japanese demand grew by N N in the first half of this year and the nation plans an issue of a silver <unk> coin that will require N million ounces + compared with huge annual surpluses of more than N million ounces in the first half of the 1980s world silver supplies and consumption are now nearly in balance mr. demler says + despite <unk> rallies in the past few years improvements in the <unk> balance have n't managed to push silver prices into a higher range + there 's just too much silver around says tom butler an analyst at samuel <unk> & co. a london bullion house + a huge silver <unk> at exchanges refiners <unk> industries and government warehouses of at least N million ounces is the market <unk> says shearson lehman hutton inc. in a report + this year alone inventories at the commodity exchange of new york jumped by a staggering N million to N million ounces because of producer deliveries <unk> by <unk> and sales by <unk> investors says <unk> o'connell london-based precious metals analyst at shearson lehman hutton + silver production is also in an <unk> upward trend ms. o'connell says + moreover while asian and middle eastern investors <unk> gold and help <unk> its price silver does n't have the same <unk> dealers say + investors have gotten burned on silver so often that they are far more partial to gold says <unk> <unk> senior vice president at union bank of switzerland + yet if gold prices improve silver prices could rally sharply he says + however dealers caution that any increase would be $ N to $ N at most + looking ahead to other commodity markets this week + livestock and <unk> + analysts expect the prices of live cattle futures contracts to rise in trading today in the wake of a government quarterly census that found <unk> cattle on feedlots + after the close of trading friday the agriculture department reported that feedlots in the N biggest ranch states held N million cattle on oct. N down N N from that date a year earlier + most analysts had expected the government to report a N N decline + feedlots <unk> young cattle for <unk> so a decline signals a tightening supply of beef + the government reported that the number of young cattle placed on feedlots during the quarter dropped N N compared with the year-earlier quarter + many industry analysts had been projecting a N N decline in <unk> for the quarter + in the N quarter many farmers were forced to sell their cattle to <unk> operators because the drought <unk> out the <unk> on their <unk> + the number of cattle moving onto feedlots in the recent quarter was also lower because <unk> cattle is less profitable + a shortage of young cattle has made them more expensive for <unk> operators to buy + the agriculture department also said that the number of <unk> cattle <unk> in the quarter dropped by N N from the N quarter which was in line with projections by analysts + energy + friday 's <unk> price drop to $ N in the <unk> november contract for west texas intermediate crude may well set the tone for trading this week in petroleum futures on the new york mercantile exchange + most traders and analysts attributed the decline to technical factors associated with the contract 's going off the board + others said that the drop continued the downward correction that 's been due in the petroleum pits and that such a trend could well continue in the next several trading sessions + barring any <unk> news events trading in the days ahead should further test recent projections by oil economists and other market watchers that strong fourth-quarter demand will keep prices firm + copper + copper prices fell sharply friday afternoon + for example copper for december delivery settled N cents lower at $ N a pound + pressure came from several developments including the settlement of two long-term strikes + on friday one analyst said <unk> workers ratified a new labor agreement ending a three-month strike at the highland valley mine in british columbia + in mexico the analyst added employees at the cananea mine who have been out of work since late august when the mine was declared bankrupt by the government accepted a N N cut in the <unk> work force + the mine is expected to return to production in about a week + on friday selling dominated the afternoon curb session in london which takes place at noon edt + the premium of cash copper to the three-month forward offerings narrowed indicating weaker demand for cash copper + long-term support for the december contract was believed to be at $ N a pound + a technical analyst said there were a number of stop-loss orders under that level that were touched off when the contract 's price fell below it + that brought in considerable fund selling which continued until the close of trading + in general it was a bearish close said ben <unk> a copper trader at rudolph <unk> & co. a major commodities trading and brokerage firm + but whether this price break has implications for this week he said we will know more when the london metal exchange copper stock levels are released monday morning + another analyst said he expected <unk> inventories to be down by about N tons when the weekly report is issued + bernard savaiko senior commodities analyst at painewebber inc. said that when traders saw the market was n't reacting <unk> to the forecasts of lower <unk> stocks they perceived a bearish sign + he also noted that the japanese who had been buying at prices just above the $ N level apparently pulled back from the market on friday + mr. savaiko said he sees a possibility of the december contract dropping to $ N a pound + hewlett-packard co. will announce today a software program that allows computers in a network to speed up computing tasks by sending the tasks to each other + called task broker the program acts something like an <unk> among a group of computers <unk> together + if a machine has a big computing task task broker asks other computers in the network for bids on the job + it then <unk> which machine is free to do the task most quickly and sends the task to that machine + hewlett-packard claims that the software allows a network to run three times as many tasks as conventional networks and will run each task twice as fast + the new hewlett-packard program said analyst john <unk> at <unk> research inc. a <unk> research company is a key building block as people move to this new model of distributed processing + in today 's computer networks some machines often sit idle while others are <unk> + with the hewlett-packard program he said you get more bang for the buck you 've spent on computers + the program which will be shipped in january N runs on the unix operating system + hewlett-packard will charge $ N for a license covering N users + the program now works on all hewlett-packard and <unk> workstations and on computers made by <unk> computer inc. of <unk> conn + hewlett-packard said it will sell versions later next year that run on sun microsystems inc. and digital equipment corp. machines + the task broker <unk> from other programs that spread computing tasks around a network + a previously available program called network computing system developed by hewlett-packard 's <unk> division for instance takes a task and <unk> it up into parts <unk> up those parts to several computers in a network for simultaneous processing + but programs in individual computers must be revised in order to work with that system + applications wo n't have to be <unk> to work with task broker hewlett-packard said and the user of a computer wo n't be able to tell that another machine is doing the work + the task broker turns that network into as far as the user is concerned one giant computer said bill <unk> general manager of hewlett-packard 's workstation group + price wars between the fast-food giants are starting to <unk> the fast-food little guys the franchisees + when <unk> start fighting <unk> get killed says murray <unk> <unk> of national restaurants a new york franchisee for pizza hut roy rogers and other chains + as <unk> and pizza outlets <unk> one area after another franchisers are struggling desperately for market share slashing prices and stepping up costly promotions + the fight is putting a tight squeeze on profits of many threatening to drive the smallest ones out of business and <unk> relations between the national fast-food chains and their franchisees + the chains used to offer discounts during winter when business was slow but in the last year or so discounting has become a 12-month thing says donald <unk> president of <unk> group inc. a new york franchisee of grand metropolitan plc 's burger king chain + though <unk> 's sales are up slightly this year mr. <unk> says profits will be flat or lower + and bill <unk> a <unk> ariz. <unk> of mcdonald 's corp. who is chairman of the company 's national operators advisory board says some fast-food outlets could be in serious trouble based on the amount of discounting that seems to be going on + until recently the huge fast-food industry with sales of about $ N billion last year kept <unk> to a minimum + but early this year pepsico inc. 's <unk> bell unit and wendy 's international inc. slashed prices and stepped up promotions says john <unk> an analyst for wertheim schroder & co + that brought a chain reaction in the industry + the situation was further <unk> early this month when mcdonald 's set plans to heat up the discounting by offering coupons + it also decided to go national with pizza which it has been <unk> + now <unk> deals on pizza are common so are <unk> <unk> on <unk> normally priced twice as high + the discounting say fast-food operators occurs on a scale and with a frequency they have n't seen before + the result is that some franchisees are running hard just to stay even laying off middle managers and working harder to make less + joe mack a district manager for <unk> enterprises inc. a burger king operator in omaha neb. says discounting is so <unk> that we have to serve N N to N N more customers to keep sales level + it 's almost as if you 're doing extra work to give away the food he says + alan <unk> president of <unk> 's inc. an operator of arby 's restaurants in omaha says all we 're doing is keeping the customers coming but we are n't increasing sales + with fast-food outlets on every corner he like many does n't think he has a choice in the price war our customers say that they wo n't go into a fast-food store unless they get a coupon + if the battle continues much longer many fast-food businesses will close or merge predicts vincent <unk> who owns a string of kentucky fried chicken stores in the midwest + the industry is overbuilt he says + fast-food franchisers have managed to squeeze in stores into every corner available + the national restaurant association says <unk> restaurant units in the u.s. rose N N to N between N and N the last year for which figures are available + with the market so crowded says a spokesman for wendy 's in columbus ohio if you 're doing well you 're doing well at someone else 's expense + simply put there is n't enough business for every store to grow + according to mr. <unk> inflation-adjusted <unk> sales at company-owned wendy 's units in the u.s. have trailed year-earlier levels throughout N except for august + mcdonald 's has also been running negative all year the analyst says + spokesmen for wendy 's and mcdonald 's criticized mr. <unk> 's calculations + jack greenberg executive vice president and chief financial officer of mcdonald 's says the company does n't <unk> much less disclose inflation-adjusted <unk> sales + he adds that short-term comparisons can be very misleading because of differences in timing of marketing programs from year to year + profit margins at company-owned mcdonald 's outlets in the u.s. are holding up quite <unk> says mr. greenberg + profits of franchisees have n't been higher since the mid-1970s he adds + but mr. greenberg 's <unk> outlook is n't matched by many fast-food industry observers + smaller chains and <unk> operators will be the first to fail many in the industry predict + big franchise groups can ride out the storm a lot longer says mr. <unk> the burger king operator in new york + the prolonged price pressures are driving a wedge between some franchisers and their franchisees + mr. <unk> the kentucky fried chicken franchisee notes that most franchise owners must absorb increases in expenses without any cut in the royalties or portion of sales that they must pay franchisers + franchisees ca n't be forced to go along with a <unk> 's discounting + but once a franchisee agrees to a promotional program the <unk> can demand full participation to the very end says <unk> <unk> a principal of <unk> & <unk> a chicago law firm with franchise industry clients + he says courts have held that antitrust considerations are <unk> in such cases by the need to protect consumers from deceptive marketing + in any case many franchisees in order to stay on good terms with franchisers routinely go along with promotions + says mr. <unk> of national restaurants if you resisted on prices maybe you would never get that telephone call about a new franchise + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + <unk> co. said it completed a $ N million sale of assets from its los angeles area real estate portfolio for net income of $ N million + <unk> said the sale is part of its previously announced plan to sell much of its real estate holdings to focus on its core business of mining and producing <unk> concrete rock and sand + and you thought the only reason to save your canceled checks was to prepare for an irs audit + <unk> jackson the retired baseball star has found another use for them + mr. jackson who won the <unk> mr. october for his world series <unk> is selling some of his canceled checks to <unk> collectors through a dealer for as much as $ N each + dealers say the <unk> trade in mr. jackson 's canceled checks is unusual + i do n't know of any living <unk> that 's ever done it says jack <unk> a dealer in <unk> iowa and a recognized expert in the field of baseball <unk> + an initial batch of mr. jackson 's checks was on sale at a <unk> show held in san francisco over labor day weekend + mr. jackson showed up at the affair to sign <unk> for a fee as well + for someone who has everything else <unk> 's jersey cap and cards his checks might be a nice addition says william <unk> owner of bill 's sports <unk> in denver who examined the checks at the san francisco card show + for years the canceled checks of a small number of well-known baseball players have been bought and sold + but these players were dead + maybe three years ago there were a lot of <unk> <unk> in the <unk> and <unk> back there were <unk> ruth checks says mr. <unk> + however the thought of a living player selling his checks <unk> some people the wrong way + maybe i 'm a little <unk> but i would n't sell them <unk> bob <unk> owner of <unk> 's sports cards in menlo park calif + who knows how much they 'll be worth N years from now + and mr. <unk> does n't believe they 're worth all that much now + i do n't think the checks are worth $ N apiece he says + why mr. jackson who could n't be reached for comment has made some of his checks available for sale is n't clear + he probably has n't done it for the cash + i would say he 's definitely not in need of money says <unk> <unk> an agent of mr. jackson 's based in new york + he has good investments + and mr. jackson probably has opened new checking accounts too + or at least he should + i assume those accounts are closed says mr. <unk> referring to the accounts of the canceled checks + i do n't think he 'd want to give out his current account numbers + usx corp. and its japanese partner kobe steel ltd. agreed to form a joint venture to build a new plant to produce hot-dipped galvanized sheet products mainly for the automotive market + terms were n't disclosed for the plant which will have annual capacity of N tons + the move by the nation 's largest steelmaker follows a string of earlier announcements by other major steel companies + bethlehem steel corp. ltv corp. and armco inc. all have plans to build additional lines for such coated <unk> steel + the surge in production analysts say raises questions about capacity <unk> demand + they note that most of the new plants will come on line in N when the current import trade restraint program ends which could result in more imports + there 's too much capacity contended charles bradford an analyst with merrill lynch capital markets + i do n't think there 's anyone not building one + he does add however that <unk> japanese car makers are boosting the levels of <unk> steel in their autos instead of relying heavily on imported steel + that trend could increase demand for hot-dipped galvanized sheet + the hot-dipped galvanized segment is one of the fastest-growing and most profitable segments of the steel market <unk> by all major integrated steelmakers wanting to maintain an edge over smaller minimills and <unk> mills those spun off to employees + indeed usx said it expects the market for coated sheet steel to reach N million tons annually by N compared with N million tons shipped in N + for the first eight months of N analysts say shipments of hot-dipped galvanized steel increased about N N from a year earlier while overall steel shipments were up only N N + usx and kobe steel hope to reach a definitive agreement establishing the N partnership by the end of the year with construction tentatively slated for the spring of N and production by N + usx already has six lines in existing plants producing hot-dipped galvanized steel but this marks the first so-called <unk> plant for such production + moreover it will boost by N N usx 's current hot-dipped capacity of N tons + the company said it does n't expect the new line 's capacity to <unk> affect the company 's existing hot-dipped <unk> lines + steelmakers have also been adding capacity of so-called <unk> steel which is another way to make coated <unk> steel + one of the advantages of the hot-dipped process is that it allows the steel to be covered with a <unk> <unk> of <unk> more quickly + once you make up your mind about an investment the rest is easy right + you just call your broker and say buy or sell + dream on + there are all sorts of ways to give buy and sell instructions to a broker and just as many ways to get burned if you do n't know what you 're doing + so here 's a <unk> of the most common types of market orders permitted by the stock and commodity exchanges + two things to keep in mind not all exchanges accept every type of order + and even when a specific order is acceptable to an exchange a brokerage firm can refuse to enter it for a customer + market order this is probably the most widely used order and the one most open to abuse by unscrupulous floor brokers since it imposes no price restrictions + with a market order an investor tells a broker to buy or sell at the market + it 's like saying get me in now or get me out now + for example if wheat is being offered at $ N and bid at $ N a market order to buy would be filled at the higher price and a market order to sell at the lower price + a recent indictment alleges that some floor brokers at the two largest chicago commodity exchanges used market orders to fill customers ' orders at unfavorable prices by arranging trades with fellow brokers + profits realized from these trades would then be shared by the conspiring brokers + limit order limit orders are used when investors want to restrict the amount they will receive or pay for an investment + investors do this by <unk> a minimum price at which the investment may be sold or the maximum price that may be paid for it + <unk> an investor wants to sell a stock but not for less than $ N + a limit order to sell could be entered at that price + one risk investors may regret the restriction if the stock reaches N and then falls + unless the market goes at least one <unk> the smallest price <unk> permitted beyond the limit price investors are n't assured of having their orders filled because there may not be sufficient trading volume to permit filling it at the specified price + stop order stop orders tell a floor broker to buy or sell an investment once the price reaches a certain level + once the price reaches that level a stop order turns into a market order and the order is filled at whatever price the broker can get + stop orders are sometimes called stop-loss orders because they are frequently used to protect profits or limit losses + while stop orders sound similar to limit orders there is a difference sell stops must be entered at a price below the current market price and buy stops above + in contrast sell limit orders must be placed above the market price and buy limit orders are placed below + the crash in october N and last friday 's sell-off painfully taught some investors exactly what stop orders will and wo n't do + an investor who may have placed a stop-loss order at $ N under a stock that was trading at $ N a share on the friday before the crash was stunned to discover that the order was filled at $ N when the stock opened at that price on monday + <unk> order <unk> orders turn into limit orders when an investment trades at the price specified in the order + unlike stop orders which are filled at the market price when the stop price is hit <unk> orders demand that the trades be made only at the specified price + if it ca n't be made at that price it does n't get filled + investors who wish to be out of a position without the risk of receiving a <unk> price from a market order may use this type of order to specify the price at which the order must be filled + but if the market moves quickly enough it may be impossible for the broker to carry out the order because the investment has passed the specified price + <unk> order <unk> orders are like stop orders in that they become market orders if a specified price is reached + however unlike a <unk> order a buy <unk> order is entered at a price below the current price while a sell <unk> order is entered at a price above it + as soon as the market trades at the specified price the floor broker will fill it at the best possible price + <unk> order the <unk> order is one of several associated with the timing of trades + it <unk> a broker to buy or sell an investment at the specified price or better + but if the investment ca n't be bought or sold immediately the order is automatically canceled + gregory <unk> who came in second in the stock division of the recently completed u.s. trading championship says he uses <unk> orders almost exclusively when trading options + i like to use them to feel out the market he says + if they do n't fill it immediately then i can start over at a new price or try again with the same price + <unk> order this is another timing order + it is a market order that allows floor brokers to take more time to buy or sell an investment if they think they can get a better price by waiting + <unk> orders which are also known as <unk> the tape orders are always done at the customer 's risk + <unk> order this is really two orders in one generally for the same security or commodity <unk> floor brokers to fill whichever order they can first and then cancel the other order + in a <unk> market it prevents an investor from getting stuck with having made two trades on the same security + <unk> order this type of order couples many of the orders described above with instructions that the order must be carried out at or by a certain time + on the close can be added to many types of orders + for example <unk> orders must be filled during the last few minutes of trading for the day at a price that is within the official closing range of prices as determined by the exchange + <unk> orders are stop orders that only become active during the closing minutes of trading + day orders expire at the end of the day on which they are entered <unk> orders have no expiration date + most brokers assume that all orders are day orders unless specified otherwise + on oct. N N some investors learned the consequences of entering <unk> limit orders and then <unk> about them + they found they had bought stock from limit orders that they might have entered weeks or months earlier and had forgotten to cancel + it is always the responsibility of investors to keep track of the orders they have placed + investors who change their mind about buying or selling after an order has been filled are usually stuck with the consequences + mr. <unk> writes on the options and commodities markets for the wall street journal + in <unk> up the risks of stock-market investments there 's probably no starting place better than beta + but investors better not ignore its limitations either + beta is a handy gauge that measures the volatility of a stock or stock mutual fund + for any given move in the overall market it suggests how <unk> that particular issue might rise or fall + beta figures are widely available and easy to interpret + the beta of the broad market typically defined as the standard & poor 's 500-stock index is always N + so a stock with a beta of N is half as volatile one at N is N N more volatile and so on + cautious investors should generally go with stocks that have low <unk> + go with <unk> stocks to get the biggest <unk> from a bet on a bull market + remember though that beta also has important limitations + beta is only part of the risk in a stock says william f. <unk> the stanford university <unk> professor who developed the measure + there is risk that is not associated with market moves and the beta does n't tell you the magnitude of that + in particular beta does n't measure the company and <unk> risk associated with an individual stock + that business risk is very significant for an investor with only a few stocks but it virtually disappears in a large and <unk> portfolio + beta is also a poor indicator of the risk in stock groups that march to their own <unk> + in particular the prices of gold and other <unk> stocks shoot up and down but the stocks tend to have low <unk> because their moves are not <unk> + concern that investors could <unk> such <unk> led the american association of individual investors to eliminate beta figures for <unk> funds in the N edition of its mutual-fund guide + our fear was people would look just at the beta of a gold fund and say here is an investment with very low risk says john <unk> director of research for the chicago-based group + in reality it 's very volatile but the movements are not because of market movements + ready to review the <unk> of your investment portfolio + first a pop <unk> + when you think of the words risk and investment what 's the specific <unk> that comes to mind + pencils down + if you 're like most people you said it 's a holding that goes completely sour maybe a bond that defaults or a stock whose value disappears in a bankruptcy proceeding + people tend to see risk primarily on that one <unk> says timothy <unk> national director of personal financial planning for accountants deloitte haskins & sells + but <unk> lies another aspect of investment risk the hazard of shaping your portfolio to avoid one or more types of risk and being <unk> by others + this is clearly not good news to all you people who sleep like <unk> every night <unk> by <unk> of your money sitting <unk> in six-month cds + risk wears many <unk> and investments that are low in one type of obvious risk can be <unk> high in other less obvious kinds + u.s. treasury bonds for example are <unk> when it comes to returning money at maturity + but their value as investments can be <unk> by inflation which <unk> the purchasing power of bonds ' <unk> interest payments + risk is also a function of time + when financial professionals measure risk <unk> they usually focus on the volatility of short-term returns + stocks are much riskier than treasury bills for example because the range in performance from the best years to the worst is much wider + that is usually measured by the standard deviation or divergence of annual results from the average return over time + but investors who are <unk> with short-term fluctuations may be paying too little attention to another big risk not generating enough money to meet long-term financial and <unk> goals + for instance some investors have sworn off stocks since the N market crash last friday 's debacle only reinforced those feelings + but the stock market despite some <unk> declines has far outperformed other securities over extended periods + by retreating to the apparent security of say money-market funds investors may not be earning enough investment return to pay for a comfortable retirement + that 's the biggest risk of all the risk of not meeting your objectives says steven b. <unk> a new york financial planner with seidman financial services + as a result financial advisers say they take several steps when evaluating the <unk> of clients ' portfolios + they estimate the return a person 's current portfolio is likely to generate over time along with a standard deviation that suggests how much the return will vary year by year + they try to figure out the long-term results the person needs to meet major goals + and they <unk> types of risk that are not easily <unk> + the portfolios of two hypothetical families one a couple at retirement age and another a <unk> couple at age N illustrate several types of risk that investors need to consider + for instance the insured municipal bonds that dominate the older couple 's portfolio were probably selected in large part for their low repayment risk + but they <unk> the holders to a lot of inflation risk and interest-rate risk + the younger couple 's <unk> involve more risk than a diversified stock portfolio because the bulk of the money is in a single issue + note that the younger couple 's portfolio has a higher expected annual return N N vs. N N as calculated by seidman financial services which is the <unk> affiliate of <unk> seidman + that largely reflects the heavy <unk> + but one price paid for the higher expected return is greater short-term volatility as reflected in the higher standard deviation that seidman estimates for the younger couple 's portfolio + here 's how to interpret a standard deviation figure take the expected return and add one standard deviation to it + then take the expected return and <unk> one standard deviation + in two of three years the actual result should fall within that range if all the assumptions were accurate + then add and <unk> two standard <unk> to get a wider range + there 's a N N probability any year 's result will fall in the range + of course the greater volatility of the younger couple 's portfolio does n't necessarily mean those investments are riskier in terms of meeting the holders ' long-term goals + indeed the older couple 's portfolio could actually be riskier in that sense if the expected return wo n't generate enough dollars to meet their spending plans + they may feel <unk> secure now because they are not heavily in the stock market says john h. <unk> a financial planner with <unk> armstrong <unk> inc. in washington + but they may pay a price N or N years in the future + ms. <unk> reports on personal finance from the wall street journal 's new york bureau + when it comes to investing trying to weigh risk and reward can seem like throwing <unk> <unk> investors do n't know the actual returns that securities will deliver or the ups and <unk> that will occur along the way + looking to the past can provide some clues + over several decades for instance investors who put up with the stock market 's gyrations earned returns far in excess of those on bonds and cash investments like treasury bills + but while history can suggest what is reasonable to expect there 's no guarantee that the past will repeat itself + for instance some analysts believe bond returns and volatility have moved permanently closer to those of the stock market + and returns on cash investments may continue to exceed inflation by a wider margin than they did over the long-term past + portfolio a retired couple age N $ N portfolio + portfolio b <unk> couple age N $ N portfolio + a letter from senator john kerry <unk> us today for <unk> that he had <unk> on manuel noriega + he <unk> says he has been down on noriega for some time hence his criticism of administration <unk> of the attempted coup + our october N editorial should have been more precise + it meant to convey our hope that the senator and other members of the congressional left are <unk> their dislike of noriega to include other notorious central american drug <unk> + the sandinistas of nicaragua for example also are part of the <unk> <unk> <unk> + in his letter and on the basis of his losing vote tuesday against u.s. aid for the nicaraguan opposition senator kerry makes clear he has not made that intellectual leap + we were wrong + throughout the 1980s investors have been looking for creative alternatives to traditional <unk> of financial planning + capital has been <unk> and people want in + too often however small investors are left with the same <unk> solutions that appealed to previous generations of fiduciary strategists + now a startling new approach is available to building your financial portfolio without <unk> risk without extensive planning and without hurting your life style one bit + this is particularly good news for those who hate risk who are <unk> of doing extensive amounts of planning and who refuse to see their life styles hurt in any way + you know who you are + my revolutionary system is also useful for those who have tried <unk> forms of growing their currency cushion + like all americans seeking <unk> prosperity i do find it necessary to plunge certain funds into conservative monetary tools if only to <unk> my <unk> who believes in such things + so throughout the decade i have maintained my share of individual retirement accounts and cds and <unk> with stocks bonds and mutual funds as well as preserving my necessary position in the residential real-estate market + return on this fine portfolio has been modest when it has not been negative + figure N demonstrates the performance of those businesses i 've invested in during this <unk> decade see accompanying illustration wsj oct. N N + <unk> properties suffered a huge decline until i <unk> myself of all such stocks in N at which point the industry while not lighting up any christmas trees began a slow recovery + likewise mutual funds remained relatively flat until i made what was for me a serious investment + by N these properties were in a tailspin causing my broker at <unk> to remark that she 'd never seen anything like it + concerned for her state of mind i dropped them and the market instantly began its steady climb back to health + perhaps most dramatic was the performance of the metropolitan new york real-estate market which was booming until i entered it in late N at which time it posted the first negative compound annual growth rate in years + <unk> i cast around for a different way to plan my asset distribution and with hardly any heavy breathing the answer struck me i was doing it already + we 've all got money to spend some of it clearly disposable since we keep <unk> of it + bank it + not really + <unk> it away in long-term instruments + nonsense + daily living is the best possible investment + your priorities may be different but here in figure N is where i 've chosen to build for the future personal space automotive <unk> children 's toys <unk> equipment <unk> and <unk> and finally entertainment perhaps the best investment of all + all have paid off for me in double-digit annual growth and continue to provide significant potential + at least according to my calculations + personal space figure N has grown N N annually over the course of the decade a performance that would compare <unk> with an investment in say <unk> products for the <unk> of <unk> vehicles which my <unk> got into and sort of regrets to this day + the <unk> of expensive children 's toys that i have purchased <unk> at a host of <unk> brokerage firms figure N has increased <unk> in total asset value far beyond any personal investment except perhaps for my record collection whose worth i think it 's safe to say is <unk> + continued investment in my N <unk> has been part of my strategy figure N with present annual contributions now equaling more than N N of the car 's original value + according to my calculations these outlays should have brought the value of my sedan to more than $ N on the open market figure N where i plan to offer it shortly + expansion of my living space has produced an obvious need for maintenance and construction of suitable <unk> <unk> and <unk> <unk> to its suburban <unk> + i have thus committed sufficient personal <unk> to ensure that my grounds and <unk> will never be short of greens and flowers + my initial stake in this <unk> enterprise has grown tenfold according to my conservative calculations + at the same time my share in a wide variety of entertainment <unk> has given perhaps the most dramatic demonstration of the benefits of creative personal financial planning + over the course of the decade for instance my return on investment in the area of <unk> alone figures <unk> and <unk> has been most impressive showing <unk> annual expansion with given the way my associates play no sign of <unk> into the 1990s and beyond + with this personal strategy firmly in place i look forward to years of fine <unk> investments and increasing widespread leverage + my kids ' college education looms as perhaps the greatest future opportunity for spending although i 'll probably have to cash in their toy portfolio to take advantage of it + but with every step i take i 'm building wealth + you can too if you like me refuse to <unk> the bullet + so go out there and eat that debt + you 're right there in the mainstream of american business building value on the back of <unk> expenditures + henry kravis watch out + mr. schwartz is a business executive and writer in new york + when james schwartz was just a <unk> his father gave him a piece of career advice + he told me to choose an area where just by being <unk> i could be great recalls mr. schwartz now N + he tried management consulting traded in <unk> for a while and even managed professional <unk> + now he has settled into a career that fits the bill financial planning + it should be noted that mr. schwartz who operates out of <unk> colo. is a <unk> sort who likes to give his colleagues the <unk> + but in this case the <unk> has a very sharp point + though it 's probably safe to assume that the majority of financial planners are honest and even reasonably competent the fact remains that as one <unk> puts it anybody who can <unk> a mirror can call himself a financial planner + planners now influence the investment of several hundred billion dollars but in effect they operate in the dark + there is no effective regulation of planners no accepted standard for admission into their ranks a dog got into one trade group no way to assess their performance no way even to know how many of them there are estimates range from N to N + all anyone need do is hang up a <unk> and start planning + so it should come as no shock that the profession if that 's what it is has attracted a lot of people whose principal <unk> seem to be <unk> away or <unk> stealing their clients ' money + alarmed state and federal authorities are trying to devise ways to <unk> and regulate planners + industry groups and reputable planners who are members of them want comprehensive standards too they 're tired of seeing practitioners <unk> <unk> in the business press as <unk> than <unk> and <unk> than a <unk> of <unk> + but reform has n't taken hold yet + the industry is still pretty much in its wild west days says scott <unk> director of investor education for the north american securities administrators association + an <unk> limited survey by <unk> whose members are state <unk> regulators found that between N and N fraud and abuse by financial planners cost N investors $ N million + the <unk> ' gallery of planners involved includes some convicted <unk> a <unk> <unk> or two various businessmen who had planned their own previous ventures right into bankruptcy and one man who <unk> his wife 's <unk> + what 's more the losses they and the others caused are just what we are <unk> over says mr. <unk> adding that the majority of <unk> probably go <unk> + so do just about all the losses that could be attributed to the sheer <unk> of <unk> planners + nobody can estimate the toll but john <unk> a tampa fla. planner and head of one trade group the international association of registered financial planners thinks the danger to investors from <unk> is <unk> far greater than that from <unk> + his group like others wants minimum standards applied to all who call themselves financial planners + <unk> all this some people now think the best planner might be no planner at all + for most investors the benefits just are n't worth the risks says barbara roper who follows <unk> issues for the consumer federation of america a <unk> organization based in washington + she concedes that such a position is unfair to the thousands of <unk> and qualified people <unk> the trade but as a consumer advocate she feels <unk> to take it + she says her group used to give tips on <unk> planners check educational and experience credentials <unk> regulators and better business bureaus but found that even some people who took these steps were still getting <unk> off + the bad news however has n't been bad enough to kill the growing demand for financial planning + the tax reform act of N which eliminated many tax shelters <unk> by planners and the stock market crash the next year did cause a sharp slump in such demand and many planners had to make an <unk> exit from the business + but membership in the international association of financial planners iafp the industry 's biggest trade group is still nearly triple what it was in N and it 's believed that the ranks of planners who do n't belong to any group have soared as well + an estimated N million americans are now using financial planners and the pool of capital they influence is enormous + a survey of N of them conducted by the iafp in april showed that these practitioners alone had controlled or <unk> the investment of $ N billion of their clients ' money in the previous N months + the sheer number of planners makes the business extremely difficult if not impossible to regulate + even the minority of them who must register with the securities and exchange commission as investment advisers people who are in the business of counseling others on the buying and selling of securities specifically have been enough to <unk> the agency 's capacity + the sec has only about N staffers assigned to keep <unk> on investment advisers about the same as in N even though the number of advisers has tripled to about N over the past decade + currently a registered investment adviser can expect an sec audit only once every N years + a lot of bad things can happen in N years + it does n't take a rocket scientist to figure out our problem says <unk> <unk> director of the sec 's division of investment management + so the sec has proposed to congress that much of the job of oversight be turned over to an <unk> <unk> organization <unk> on the national association of securities dealers which operates in the brokerage business + such an organization could among other things set minimum standards for <unk> ethics and finances and punish those investment advisers who broke the rules + the proposal has set off a <unk> debate within an industry that was far from united to begin with + mr. schwartz the <unk> planner from <unk> colo. says that allowing the business to police itself would be like putting <unk> in charge of the blood bank + mr. <unk> the tampa planner who heads one trade group favors simply assessing the industry and giving the money to the sec to hire more staff + mr. <unk> 's views are not greeted with wild enthusiasm over at the iafp the major industry organization + when the iafp recently assembled other industry groups to discuss common standards that might be applied to planners mr. <unk> 's group was excluded + that may be because mr. <unk> <unk> at what he considered <unk> on his membership standards made by the rival group <unk> his dog <unk> as a member of the iafp + then he sent the <unk> 's picture with the certificate of membership it was made out to <unk> <unk> <unk> to every newspaper he could think of + the states have their own ideas about regulation and <unk> + <unk> the organization of state securities regulators is pushing for a model regulatory statute already adopted in eight states + it requires financial planners to register with states pass <unk> tests and reveal to customers any conflicts of interest + the most common conflict involves compensation + <unk> estimates that nearly N N of planners receive some or all of their income from sales commissions on securities insurance and other financial products they recommend + the issue is the planner putting his clients into the best investments or the ones that <unk> the biggest commissions + in N the new york attorney general 's office got an order from a state court in albany <unk> down first meridian corp. an albany <unk> firm that had invested $ N million on behalf of nearly N investors + in its notice of action the attorney general said the company had promised to put clients into balanced investment portfolios instead the attorney general alleged the company consistently <unk> <unk> customers into high-risk investments in paintings coins and florida <unk> + those investments paid big commissions to first meridian payments investors were never told about the attorney general alleged + investors were further assured that only those with a <unk> net worth would be accepted + in practice the attorney general alleged in an affidavit if an investor had access to cash the chances of being turned down by first meridian were about as probable as being rejected by the <unk> club + and the attorney general added first meridian 's president roger v. <unk> portrayed himself as a financial expert when his <unk> largely <unk> of a high-school <unk> work as a real-estate and insurance salesman and a <unk> as supervisor at a highway toll <unk> + first meridian and its officials are currently under investigation for possible criminal wrongdoing according to a spokeswoman for the attorney general + harry <unk> mr. <unk> 's attorney says his client denies any wrongdoing and adds that the attorney general 's <unk> about first meridian 's business practices are incorrect + as for mr. <unk> 's <unk> the <unk> attorneys for the state of new york decided mr. <unk> was n't qualified because he did n't have a harvard degree says mr. <unk> + civil suits against planners by clients seeking recovery of funds are increasingly common + two such actions both filed earlier this year in georgia state court in atlanta could be particularly embarrassing to the industry both name j. chandler peterson an atlanta financial planner who is a founder and past chairman of the iafp as defendant + one suit filed by more than three dozen investors charges that mr. peterson <unk> much of the $ N million put into a limited partnership that he operated and <unk> spending some of it to pay his own legal bills and to invest in other companies in which he had an interest + those companies in turn paid mr. peterson commissions and fees the suit alleges + the other suit was filed by two men in a dispute over $ N investments each says he made with mr. peterson as part of an effort to purchase the bank of <unk> in <unk> <unk> + one plaintiff a doctor testified in an affidavit that he also gave mr. peterson $ N to join a sort of investment club which essentially gave the physician the privilege of making additional investments with mr. peterson + in affidavits each plaintiff claims mr. peterson promised the bank purchase would be completed by the end of N or the money returned + mr. peterson took the plaintiffs ' and other investors ' money to a meeting of the bank 's directors + wearing a business suit and western-style hat and <unk> he opened up his <unk> and dumped $ N million in cash on a table in front of the directors says <unk> <unk> the bank 's president + he said he wanted to show the color of his money recalls mr. <unk> + bank officials however showed him the door and the sale never came off + according to the suit mr. peterson has yet to return the plaintiffs ' investment + they want it back + mr. peterson declines to comment on specific allegations in the two suits saying he prefers to save such responses for court + but he does say that all of his activities have been entirely proper + on the suit by the limited partners he says he is considering a <unk> suit against the plaintiffs + the suit he adds is almost in the nature of a <unk> by a handful of <unk> people + <unk> the suit over the bank bid mr. peterson says it is filled with <unk> language and half <unk> + he declines to go into <unk> + mr. peterson says the suits against him are less a measure of his work than they are a sign of the times in which people generally are more prone to sue + i do n't know anybody in the industry who has n't experienced litigation he says + mr. peterson also says he does n't consider himself a financial planner anymore + he now calls himself an investment banker + in many scams or alleged scams involving planners it 's plain that only a <unk> of common sense on the part of the investors would have kept them out of harm 's way + using it would n't a <unk> hesitate to pay tens of thousands of dollars just for a chance to invest <unk> planner + other cases go to show that an old saw still applies if it sounds too good to be true it probably is + certificates of deposit do n't pay N N a year for example but that did n't give <unk> to clients of one alabama planner + now they 're losers and he 's in jail in mobile county + cds yielding N N are even more <unk> especially when the issuing bank in the marshall islands is merely a mail drop watched over by a local <unk> operator but investors fell for that one too + and the colorado planner who promised to make some of his clients <unk> on investments of as <unk> as $ N + never mind + you already know the answer + mr. <unk> is a staff reporter in the wall street journal 's los angeles bureau + at the <unk> fashion island shopping center the <unk> and elegant <unk> of this wealthy southern california beach community <unk> from their <unk> and <unk> for another day of exercising their credit cards + they root among the designer offerings at <unk> and <unk> <unk> + they <unk> through the <unk> <unk> of the <unk> court + they <unk> at the farmers market a combination <unk> food court and grocery store while a <unk> <unk> the noon fashion show with a selection of <unk> <unk> + the beautiful look of <unk> <unk> the show 's <unk> slightly <unk> in its influence + meanwhile in the <unk> office buildings that ring fashion island the odds are good that someone is getting <unk> + law-enforcement authorities say that at any given time a host of fraudulent <unk> operations <unk> with the many legitimate businesses here + they seem to like these industrial parks says <unk> <unk> a postal inspector who specializes in mail fraud + we call them fraud farms + welcome to that <unk> of <unk> known as newport beach + this city of more than N is known for <unk> <unk> and rich residents + it is also known as the fraud capital of the u.s. dubbed by investigators and the media as the <unk> de fraud + how does a community famous for its high living end up as a haven for <unk> + clearly the existence of the former <unk> the latter + the places <unk> for breeding <unk> like the miami neighborhood known as the <unk> mile and las vegas 's flashy strip of casinos invariably offer fast cars high <unk> glamorous women and lots of <unk> + you do n't hear much about unusual <unk> of fraud in green bay or <unk> + con men hate snow + newport beach fits the <unk> artists ' specifications perfectly + what more could a con man in search of the easy life ask for + nothing seems hard here + the <unk> are soft the waves <unk> gently and the palm trees <unk> <unk> + <unk> is <unk> + moreover <unk> is <unk> + the median price of homes is $ N more than N vessels fill what the chamber of commerce calls the nation 's largest <unk> harbor + <unk> cocaine and <unk> <unk> mr. <unk> + that 's what they 're after + the rich image of newport beach also helps lend the con artists ' operation an air of respectability + one reason they use newport beach is that it sounds <unk> than most addresses says david katz a u.s. attorney who until recently headed a <unk> southern california fraud task force + newport beach is known in <unk> island for having a lot of rich people + no wonder all kinds of big-time scams have <unk> here from phony <unk> <unk> sales to <unk> car dealers to <unk> <unk> traders + but above all this is the national headquarters for <unk> operators those <unk> <unk> salesmen who use the telephone to extract money from the <unk> and the greedy and then <unk> + because only a fraction of them are ever prosecuted nobody really knows how much money <unk> <unk> operators really harvest + i 've heard that there is $ N billion taken in nationwide by boiler rooms every year mr. <unk> says + if that 's true orange county has to be at least N N of that + and most of the truly big scams in orange county seem to <unk> in newport beach or one of the other <unk> communities that <unk> this <unk> city that <unk> around a point of land on the california coast south of los angeles + in fact sophisticated <unk> <unk> scams are known <unk> among law-enforcement types as newport beach operations + that contrasts with the <unk> sales of things such as <unk> sets and office supplies that are known as hollywood scams + newport beach <unk> concentrate on precious metals and <unk> deals that typically cost thousands of dollars a shot + the investors range from elderly <unk> to affluent professionals + in one <unk> recent example of a newport beach boiler room prospective investors in capital trust inc. were allegedly told that their investment in precious metals was insured against losses caused by employees due to dishonesty destruction or disappearance according to an indictment handed up by a federal grand jury in los angeles last month + thus <unk> <unk> investors sent $ N million to the newport beach company most of which was diverted to unauthorized uses the indictment charges + douglas jones an attorney representing richard o. kelly sr. the chairman and president of capital trust says his client denies that there was any attempt to <unk> investors + there were some business deals that went bad mr. jones says but no intent to <unk> + newport beach operations differ from the hollywood boiler rooms in style as well as in dollars + traditionally boiler rooms operate on the cheap since few if any customers ever visit their offices + indeed the name <unk> from the tendency among <unk> <unk> to rent cheap <unk> space near the boiler room + but says mr. katz the u.s. attorney the interesting thing about newport beach operations is that they give themselves the <unk> of beautiful offices with <unk> <unk> + when we go there it 's quite different from these hollywood places where the <unk> are spread out on the table and the people are picking their <unk> + the newport beach operators also tend to <unk> themselves privately + investigators cite the case of <unk> <unk> who is currently serving a <unk> sentence at <unk> federal prison for his role in <unk> investment corp. which promised investors returns of as much as N N on precious metals + mr. <unk> who pleaded guilty to five counts of fraud in federal court in los angeles drove a leased mercedes and lived in an expensive home on <unk> <unk> an island in newport 's harbor according to investigators + with the $ N million received from investors he took frequent <unk> with friends to exotic <unk> and leased an expensive <unk> for his girlfriend whom he met at the shop where he got his <unk> suits + it 's amazing the amount of money that goes up their nose out to the dog track or to the tables in las vegas mr. katz says + all this talk of boiler rooms and fraud is <unk> to the city 's legitimate business element + vincent <unk> <unk> regional manager of property management systems insists he does n't know of any <unk> <unk> operating in the N million square feet of office space around fashion island that his company leases for irvine co. the owner and developer of the project + mr. <unk> has rejected a few prospective tenants who provided incomplete financial information and acknowledges that <unk> operators are not easily <unk> + investigators stress that building owners are victims too since boiler rooms often leave without paying rent + richard <unk> president of the newport harbor area chamber of commerce calls boiler rooms a negative we wish we could get rid of + actually we do n't get much negative publicity about this he insists except for the press who write about it + mr. lancaster is deputy chief of the wall street journal 's dallas bureau + you went to college and thought you got an education + now you discover that you never learned the most important lesson how to send your kids to college + true when you went to college there was n't that much to learn + stick some money in an <unk> account and watch it grow + now investment salesmen say it 's time to take some risks if you want the kind of returns that will buy your <unk> a ticket to prestige <unk> in N years + in short throw away the <unk> and go for the glory + the reason is cost + nothing in the <unk> of tuition <unk> parents for the 1980s + <unk> at private colleges rose N N in the N years ended in june of this year that 's twice the N N increase in consumer prices for the same period + a year at harvard now goes for $ N + by N when this year 's <unk> hit campus a four-year ivy league <unk> will cost $ N give or take a few <unk> at <unk> time + stanford mit and other <unk> will cost no less + so what 's a parent to do + some investment advisers are suggesting in effect a bet on a start-up investment pool maybe even on margin + others prefer <unk> zero-coupon bonds + still others say why not take a chance on a <unk> growth fund + you 're not going to make it in a N N bank account says james <unk> director of mutual funds at t. rowe price + to get the necessary growth adds murray <unk> a marketing official at the financial programs mutual-fund group you need to go to the stock market + in other words a little volatility never hurt + it never hurt anyone that is unless the growth funds do n't grow when you need them to + or the zero-coupon bonds turn out not to have been discounted deeply enough to pay your kid 's tuition + that 's the dilemma for today 's parent + although many experts are advising risk no one has a good answer for you if the risk does n't pay off + help may be on the way + the antitrust division of the justice department is investigating the oddly similar tuition charges and increases among the top schools + fear of the price police could help cool things off in the 1990s + and then there 's always state u + but parents ' <unk> for a <unk> education for their children is growing like their taste for fancy wheels and vintage wine + <unk> aware of public concern lawmakers and financial middlemen are working overtime to create and sell college savings and investment schemes + their message explicit or implicit is that a good college will cost so much by whenever you want it that the tried and true wo n't do anymore + forget about treasury bills or a money-market fund + the latest wave of marketing is <unk> + several <unk> including the financial programs franklin and t. rowe price mutual-fund groups and the edward d. jones brokerage house are advertising college planner tables and charts that tell you how much you need to put aside regularly + the calculations generally rely on an after-tax rate of return of N N annually a rate historically <unk> by the individual in only one place the stock market + most of the <unk> are free but <unk> financial programs sells for $ N a version <unk> to the age of the child and the college of choice + the figures are <unk> + to build a <unk> egg that would pay for stanford when a current <unk> reaches college age parents would need to set aside $ N a month for N years + they can cut this to $ N a month if the investing keeps up through college + and they can further reduce the monthly amount if they start saving earlier when mother and child come home from the hospital + <unk> a cheaper college into the <unk> still does n't generate an installment most people can live with + using a recent average <unk> cost of about $ N a year t. rowe price 's planner <unk> $ N monthly if the plan begins when the child is six + since the formula assumes an N N <unk> return in a mutual fund there would also be $ N in taxes to pay over the N years + not everyone is so pessimistic + people are basically peddling a lot of fear says arthur <unk> a consultant to the american council on education in washington + he takes issue with projections that do n't factor in students ' own contribution which reduces most parents ' burden substantially + still he says it 's no bad thing if all the marketing <unk> people into putting aside a little more + the situation you want to avoid is having somebody not save anything and hope they 'll be able to do it out of current income he says + that 's crazy + his advice do n't panic + parents he says should aim at whatever regular investment sum they can afford + half the amount that the investment tables suggest might be a good goal he adds + that way parents will reduce borrowings and outlays from current income when the time comes to pay tuition + mr. <unk> <unk> that the best investment choice is mutual funds because they are managed and over time have nearly kept up with the broad stock averages + he favors either an <unk> fund or a balanced fund that <unk> both stocks and bonds + in their anxiety however parents and other student <unk> are <unk> to new schemes + they have laid out about $ N billion for so-called <unk> zero-coupon municipal bonds so far offered by connecticut illinois virginia and eight other states + and they have bought about $ N million in <unk> plans offered in michigan florida and wyoming + the prepaid plans take payment today usually at current <unk> or at a slight discount for a promise that tuition will be covered tomorrow + the <unk> bonds tax-free offered in small denominations and usually containing a provision that they wo n't be called before maturity seem to be <unk> for college <unk> + like other <unk> they pay all their interest at maturity meaning that buyers can time things so that their bonds pay off just when junior graduates from high school + their <unk> effect is also <unk> + in june virginia sold bonds for $ N that will pay $ N in N + but richard anderson head of the forum for college financing alternatives at columbia university a research group partly financed by the federal government says <unk> are particularly <unk> + their price falls further than that of other bonds when inflation and interest rates kick up + that wo n't matter if they are held to maturity but if for any reason the parents need to sell them before then there could be a severe loss of principal + had <unk> been available in N and had parents bought a face amount equal to four years ' tuition at the time aiming for their children 's N <unk> they would have been left with only enough to pay for two years mr. anderson figures + most other bonds however would probably not have fared much better + the prepaid plans may be a good bet provided the guarantee of future tuition is secure + issuing states generally limit the guarantees to <unk> institutions however and buyers get refunds without much interest if the children do n't attend the specified schools + two private groups are seeking securities and exchange commission approval for plans that could be more broadly <unk> + mr. anderson wants the prestige colleges to sponsor such a plan + the issue here may be the <unk> of the guarantee + prepayments much like mutual-fund purchases are <unk> for investment + sponsors are naturally counting on their ability to keep ahead of tuition inflation with investment returns + but buyers are essentially betting on a start-up investment fund with no track record and some have been encouraged to borrow to do so + one problem is that the internal revenue service has decided that the investment earnings and gains of the sponsors ' funds are taxable + the colleges as educational institutions had hoped that would n't be the case + based on historical rates of return mr. anderson <unk> a N N stock portfolio <unk> to the market would have kept up with tuition and taxes in the 20th century + but sponsors might not pick the stocks that will match the market + and they 're <unk> more toward fixed income whose returns after tax have trailed tuition increases + i 'm not sure they 're going to make it work says mr. anderson + what happens if the sponsors do n't have the cash to pay the <unk> + florida and wyoming have backed up their guarantees with the full faith and credit of the state governments meaning that taxpayers will pick up any slack + not so michigan + its plan is set up as an independent agency + the state says there 's no worry investment returns combined with fees and the gains from unused plans will provide all the cash it needs + mr. <unk> covers education from the wall street journal 's boston bureau + if you start saving for your child 's <unk> on jan. N N here 's the monthly sum you will need to invest to pay for four years at yale <unk> <unk> and university of minnesota + figures assume a N N annual rise in tuition fees room and board and an N N annual investment return + note these figures are only for mandatory charges and do n't include books transportation etc + \* for <unk> students + source painewebber inc + among the <unk> farmers in the <unk> delta land of <unk> county <unk> allen d. tharp of <unk> was one of the best known and most <unk> + he sold <unk> <unk> to stock other farmers ' <unk> and he bought back <unk> <unk> that he <unk> to market along with his own <unk> crop + and he nearly always bought and sold for cash + along the way mr. tharp omitted a total of $ N million from his receipts reported on federal tax returns for three years + the returns landed in the hands of an internal revenue service criminal investigator samuel james baker + mr. baker interviewed or wrote to hundreds of <unk> farmers <unk> and processors throughout the south before coming up with detailed estimates of purchases and sales in pounds and dollars by mr. tharp and others + unknown to mr. tharp he had <unk> his net on a special irs project to catch <unk> farmers and <unk> inclined to <unk> on their taxes + confronted with the evidence mr. tharp pleaded guilty to one charge of filing a false return and was fined $ N and sentenced to N months in prison + he also owes a lot of back taxes interest and civil fraud penalties + a lot of taxpayers out there are n't as <unk> as one might think + federal and state tax enforcers develop many group targets for investigation on the basis of <unk> high income type of income or some other characteristic that may signal an opportunity or tendency to hide income or <unk> deductions + many <unk> long have seemed to be targets because of the exotic or <unk> efforts of some members to offset high income with fake losses from phony tax shelters <unk> who invested in <unk> dubbed foreign films or airline pilots who raised <unk> on their days off + mail-order ministers have been <unk> + now television and radio <unk> are under scrutiny + the irs recently won part of its <unk> battle with the church of <unk> over <unk> when the u.s. supreme court held that members ' payments to the church were n't deductible because the members received services in return + irs statistics show that the more persistent <unk> of income among sole <unk> of businesses include <unk> dealers entertainment producers <unk> <unk> and taxi owners + small businesses in general account for almost N N of <unk> personal income the irs has said + once such abuses become so pervasive the irs builds another factor into its secret computer formula for <unk> returns for audit and does n't need special projects for them + san <unk> have a much higher <unk> of audits than average because more of them score high under that formula not because irs agents envy their life styles + many <unk> for mass cheating such as questionable tax shelters and home offices have <unk> so broadly that congress has passed <unk> laws to close them + deductions of charitable gifts of highly valued art now must be accompanied by <unk> + and laws requiring the reporting of more <unk> of transactions have enabled the irs to rely on computers to <unk> out discrepancies with returns and to generate <unk> inquiries to taxpayers + <unk> <unk> income can be spotted by computer because a <unk> of <unk> who gets a deduction must report the former spouse 's social security number + <unk> applicants now must give social security numbers enabling the irs to see whether americans living abroad are filing required u.s. returns + but while irs computers focus routinely on target groups like these the agency has assigned many agents to special projects that need more personal attention + in most cases the irs says these projects are local or regional rather than national and arise because auditors in an area detect some pattern of abuse among say factory workers claiming that having a <unk> of dependents <unk> them from tax <unk> or <unk> owners <unk> losses from sideline charter businesses + the national office currently has N <unk> audit projects according to marshall v. <unk> deputy assistant commissioner for examination + auditors involved in <unk> projects ca n't send anyone to jail but they can make life <unk> in other ways for one by imposing some of the N different civil penalties for negligence failure to file a return and the like + the targeted audit groups include direct sellers people who sell cosmetics <unk> and other items door to door or at home parties and employers who label workers as independent contractors instead of employees to avoid the employer share of payroll taxes + other projects look for offenders among <unk> who get cash tips people who engage in large cash transactions and people whose returns show they sold a home for a profit without <unk> the capital gain in another home by the end of the same year the gain must be rolled over within two years to defer tax + and now that returns must show dependents ' social security numbers the irs wants to see which dependents show up on more than one return and which dependents turn out to be <unk> + impetus for the <unk> project came from a congressional hearing some years back + it prompted an irs study that found many sellers were <unk> income and treating large amounts of <unk> travel and other personal expenses as business costs mr. <unk> says + the study provided criteria for <unk> out returns of potentially <unk> taxpayers who report low income and large expenses from a <unk> business + the tax court recently denied business deductions by mr. and mrs. peter s. rubin of cherry hill n.j. who both were <unk> distributors of <unk> products in addition to their regular jobs as sales people in other fields + for N they reported gross income of $ N from <unk> sales offset by expenses totaling $ N including car costs of $ N and travel and entertainment costs of $ N + the tax court did n't believe that the <unk> who earned $ N in their regular jobs treated the sideline as a real business and derived merely <unk> elements of recreation and other personal pleasure and benefits from it + the direct selling association a trade group points out that its members which include <unk> corp. cooperate with the irs to distribute <unk> material to sales people and are helping to prepare a <unk> television program on the subject + the <unk> project which began in N involves about N irs agents + in the fiscal nine months ended june N reports raymond p. keenan assistant commissioner for collection they examined about N employers assessed more than $ N million in <unk> employment taxes and <unk> about N workers as employees instead of self-employed contractors + the number of <unk> workers may be in the millions mostly paid by small firms + many workers especially professionals want to remain independent to avoid tax <unk> and to continue to <unk> many expenses that employees ca n't + but many others who want to qualify for employee benefits and unemployment compensation become <unk> for the irs says jerry <unk> who manages the irs project 's force of nine agents in north and central florida from <unk> + firms that are paying employment taxes also provide leads to competitors that are n't he says + in his area mr. <unk> continues the <unk> employers most commonly are in construction doing <unk> <unk> <unk> and similar work + but a medical clinic with about N employees <unk> listed all of them including physicians and <unk> as independent contractors + the irs assessed the clinic $ N in back payroll taxes + it assessed nearly $ N against a <unk> company that carried about N <unk> <unk> <unk> <unk> and other employees as self-employed <unk> + <unk> states also are becoming more aggressive <unk> of tax <unk> and perhaps none tracks them down with more <unk> than does new york since it acquired an $ N million computer system in N + the state 's tax enforcers have <unk> data bases from other new york agencies that license or register professionals and businesses from exchange agreements with the irs N other states and two canadian provinces and even from <unk> yellow pages + thus armed for massive matching of documents by computer they single out <unk> groups looking primarily for people who have n't filed new york income-tax returns + the state has <unk> through records relating to architects stockbrokers lawyers in the new york city area construction workers from out of the state and homeowners who claim to be residents of other states especially florida which has no personal income tax + soon to feel the glare of attention are lawyers elsewhere in the state doctors <unk> and accountants says frederick g. <unk> director of the <unk> division that develops the <unk> programs + the department has collected over $ N million from brokers so far and recommended more than N of them for criminal prosecution + in the early stage of checking people with incomes exceeding $ N who were filing <unk> returns it squeezed $ N million out of a man who was <unk> as a florida resident + we think we can reclaim hundreds of millions of dollars just through the <unk> project mr. <unk> declares + mr. <unk> is editor of the wall street journal 's tax report column + in finding good news in berkeley 's new freshman <unk> plan the <unk> class editorial sept. N you 're reading the headline but not the story + the plan indeed raises from N N to N N the number of <unk> applicants admitted strictly by academic criteria + but that does n't mean half of the students attending berkeley will be admitted this way + the plan is talking about applicants admitted not students who <unk> + since the yield from this top <unk> of applicants is relatively low boosting admits from N N to N N will boost <unk> from about N N to N N of the class + in addition perhaps N N of <unk> will come from a new category consisting of applicants whose academic credentials narrowly missed gaining them admission in the first category + but against that combined increase of N N in students chosen by academic criteria the plan <unk> a large category in which <unk> now are based on grades test scores and supplemental points for factors such as high-school <unk> <unk> <unk> and an <unk> + this category now accounts for about N N of admits and N N of <unk> + the plan thus will decrease by N N for a net loss of N N the number of students admitted primarily by academic criteria + who will take over these places + the plan creates a new category of students from <unk> <unk> backgrounds a concept not yet defined and gives them about N N of the class + one of the plan 's authors has defended the <unk> disadvantage category as perhaps making more sense than the current <unk> preferences based on race + perhaps it does + but the new category does not replace or reduce berkeley 's broad racial preferences + nor will students from <unk> groups who are admitted through the new category be counted against the <unk> target for their group + the plan thus places a large new <unk> program based on <unk> disadvantage on top of the existing program based on race + the role of academic criteria in choosing berkeley 's <unk> can only decline as a result + stephen r. barnett professor of law university of california berkeley calif + for those who <unk> in the <unk> of others read on + this is a story about <unk> + most of us know a <unk> + many of us are <unk> + but what we may not know is just what makes somebody a <unk> + what makes people <unk> out their credit-card numbers to a caller they 've never heard of + do they really believe that the number is just for <unk> and is simply a <unk> on the road to being a <unk> winner + what makes a person buy an oil well from some <unk> knocking on the screen door + or an interest in a retirement community in nevada that will knock your <unk> off once it is built + because in the end these people always wind up asking themselves the same question how could i be so stupid + there are unfortunately plenty of answers to that question and <unk> artists know all of them + these people are very skilled at finding out what makes a person <unk> says kent neal chief of the <unk> unit of the <unk> county state attorney 's office in fort <unk> fla. a major haven for boiler rooms + once they size them up then they know what <unk> to push + john <unk> agrees and he ought to know + he used to be a <unk> salesman peddling investments in oil and gas wells and rare coins + there 's a <unk> psychology of the sale and different <unk> you pitch different ways he says + the most obvious pitch of course is the lure of big returns + we 're all a little greedy + everyone is vulnerable says charles harper associate regional administrator for the securities and exchange commission in miami + these guys <unk> on human <unk> + while the promises of big profits ought to set off warning bells they often do n't in part because <unk> <unk> have become <unk> in american <unk> + the overnight success story is part of our culture and our society puts an emphasis on it with <unk> and ed <unk> making <unk> out of people says michael <unk> an associate professor of psychology at the university of kentucky in louisville + other people are making it overnight and the rest who <unk> daily do n't want to miss that opportunity when it seems to come along + adds spencer <unk> branch chief for enforcement at the sec in fort worth texas why do people play the <unk> when the odds are great against them + people are shooting for a dream + clearly though <unk> artists have to be a bit more <unk> than simply promising millions the psychology of <unk> is n't simply the psychology of the greedy + there 's also for instance the need to be part of the <unk> + so one popular <unk> is to make a prospective investor feel like an insider joining an exclusive group that is about to make a killing + between N and N for instance <unk> oil in winter haven fla. sold interests in oil wells to a very select group of local residents while turning away numerous other eager investors + the owner of the company stephen smith who has since pleaded guilty to state and federal fraud charges <unk> to investors that he had a secret agreement with amoco oil co. and said the location of his wells was confidential according to a civil suit filed in a florida state court by the florida comptroller 's office + neither the amoco agreement nor the wells existed the suit alleged + such schemes says tony <unk> chief of the <unk> unit of the federal bureau of investigation in washington d.c. appeal to investors ' desire to believe this is really true and that they are part of a chosen group being given this opportunity + at times salesmen may <unk> the inside information with the notion that this is some slightly <unk> slightly illegal investment the person is being included in says mr. <unk> + in appealing to those with a bit of <unk> in their hearts the fraud artist can insist that a person keep an investment secret <unk> himself from being discovered and keeping his victim from consulting with others + it also adds to the mystery of the venture + mr. <unk> the <unk> veteran believes that for many investors the <unk> scams carry a <unk> element of excitement + once people got into it i was allowing them to live a dream he says + he <unk> them with <unk> on the investment such as funny things that happened at the well that week he says + you gave them some excitement that they did n't have in their lives + mr. <unk> who was convicted in florida state court of selling <unk> securities and in california state court of unlawful use of the telephone to <unk> and <unk> is now on <unk> + he says he has quit the business and is back in school <unk> in psychology with aspirations to go into industrial psychology + for some investors it 's the appearances that leave them <unk> + the <unk> of success go a long way wearing the right clothes doing the right things says paul <unk> an associate professor of psychology at harvard + conservative appearances make people think it 's a conservative investment + people <unk> lose money on risky investments that they did n't realize were a <unk> he says + paul <unk> a phoenix ariz. attorney says a promise of <unk> returns would have made him leery + but mr. <unk> who says he lost $ N in one <unk> deal and $ N in another says a salesman used a <unk> approach with him sending investment literature a contract limiting the firm 's liability and an insurance policy + when he visited the company 's office he says it had all the <unk> of legitimacy + still others are <unk> by a desire to do both well and good says douglas watson commanding officer of the los angeles police department 's <unk> division + <unk> <unk> are the most visible targets of unscrupulous <unk> investment pitches + but hardly the only ones the scams promise among other things to help save the environment feed <unk> families and prevent the disappearance of children + <unk> say isolated people who do n't discuss their investments with others are particularly at risk for fraud + <unk> artists seek out such people or try to make sure that their victims <unk> themselves + for instance salesmen may counter a man 's <unk> that he wants to discuss an investment with his wife by asking who wears the <unk> in your family + or an investor who wants his <unk> 's advice may be told you seem like a guy who can make up his own mind + often con artists will try to <unk> their victims by <unk> <unk> between them + william <unk> a retired engineer from lockheed corp. says he and his wife <unk> <unk> to the investment pitches of a <unk> <unk> from <unk> co. in atlanta after the broker told them he too had once worked with lockheed + the <unk> of <unk> springs ga. have filed suit in georgia state court against stuart james alleging fraud + they are awaiting an arbitration proceeding + they say the broker took them out for lunch frequently + he urged them to refer their friends who also lost money + donald <unk> an attorney for the <unk> firm denies the fraud allegations and says the <unk> were fully <unk> that they were pursuing a high-risk investment + it 's not uncommon for these guys to send pictures of themselves or their families to <unk> themselves to their clients says <unk> <unk> chief of the <unk> section of the u.s. attorney 's office in los angeles + we 've seen cases where salesmen will affect the <unk> of the region of the country they are calling + anything to make a sale + experts say that whatever a person 's particular weak point timing is crucial + people may be particularly vulnerable to <unk> pitches when they are in the midst of a major upheaval in their lives + sometimes when people are making big changes retiring from their jobs moving to a new area they lose their bearings says <unk> <unk> a licensed <unk> who is now an investment adviser and principal in <unk> inc. a birmingham mich. <unk> firm + they may be susceptible to some song and dance if it hits them at the right time + they are obviously also more susceptible when they need money <unk> for instance trying to bolster their fixed income or parents <unk> over how to pay for a child 's college expenses + these people are n't necessarily stupid or <unk> + almost all of us in comparable circumstances might be <unk> in some way says <unk> <unk> a psychology professor at the university of southern california in los angeles + <unk> <unk> thinks that 's what happened to him + mr. <unk> a <unk> delta air lines engineer invested some $ N in penny stocks through a broker who promised quick returns + we were saving up to buy a house and my wife was pregnant says mr. <unk> + it was just before the christmas holidays and i figured we could use some extra cash + the investment is worth about $ N today + maybe it was just a vulnerable time says mr. <unk> + maybe the next day or even an hour later i would n't have done it + ms. <unk> is a staff reporter in the wall street journal 's atlanta bureau + prices for seats on the new york stock exchange are recovering a bit after hitting a four-year low earlier this month + two seats on the big board were sold yesterday for $ N and then $ N + the previous sale was $ N on oct. N the last time prices were that low was november N when a seat sold for $ N + prices peaked at $ N in september N + seats are currently quoted at $ N bid and $ N asked + fox hunting has been defined as the <unk> in pursuit of the <unk> but at least it 's exercise + at least it has a little <unk> + most of us have to spend our time on <unk> that afford neither <unk> duties rather than <unk> + like trying to buy life insurance for instance an <unk> notably lacking in <unk> + call it the <unk> <unk> after the <unk> + but sooner or later most of us have to think about life insurance just as we often have to think about having <unk> work + and my time has come + i 'm N married no children and employed in writing stories like this one + in times past life-insurance salesmen targeted heads of household meaning men but <unk> is a <unk> family and accustomed to it + so if anything happened to me i 'd want to leave behind enough so that my <unk> husband would be able to pay off the mortgage and some other debts though not i admit enough to put any potential second wife in the <unk> of luxury + figuring that maybe $ N to $ N would do but having no idea of what kind of policy i wanted i looked at the <unk> products of a dozen companies and plunged into a <unk> of <unk> + over the past decade or two while i was thinking about fox hunting the insurance industry has spawned an incredible number of products variations on products and variations on the variations + besides term life and whole life the old <unk> we now have universal life universal <unk> life flexible adjustable universal life policies with <unk> bonuses policies <unk> with exotic riders living benefit policies and on and on + what to do + first <unk> + <unk> of all their riders special provisions and other bells and <unk> insurance policies can still be <unk> under two broad categories so-called pure insurance which <unk> no cash value in the policy and pays off only upon death and permanent insurance which provides not only a death benefit but also a cash value in the policy that can be used in various ways while the insured is still alive + if all you want is <unk> coverage pure insurance a term policy gives you maximum bang for your buck within limits + it 's much cheaper than permanent insurance bought at the same age + but term means just that the policy is written for a specific time period only and must be renewed when it expires + it may also <unk> that the insured must pass another medical <unk> before renewal if you <unk> which means you need insurance more than ever you may not be able to buy it + even if you 're healthy and can renew your premium will go up sharply because you 're that much older + so term insurance may not be as cheap as it looks + there are all sorts of variations on term insurance policies structured to pay off your mortgage debt term riders tacked on to permanent insurance and many others + one <unk> that appealed to me at first was the money smart term life policy offered by amex life insurance co. the american express unit to the parent company 's credit-card holders + upon examination however i <unk> whether the plan made a lot of sense + amex said it would charge me $ N a year for $ N of coverage and would pay me back all the premiums i put in if i canceled the policy after N years + sounds great or does it + first if i canceled i 'd have no more insurance a not <unk> consideration + second the $ N i 'd get back would be much diminished in purchasing power by N years of inflation amex not i would get the benefit of the investment income on my money income that would have exceeded the inflation rate and thus given the company a real profit + third and most important amex would charge me a far higher premium than other reputable companies would on a straight term policy for the same amount i 'd be paying so heavily just to have the option of getting my premiums back that i 'd almost have to cancel to make the whole thing <unk> + that would be all right with amex which could then lock in its investment profit but it does n't add up to a smart money move for me + which goes to show that the first law applies in insurance as in anything else there is no free lunch there is only marketing + and the second law unique to insurance + if i die early i win a <unk> victory since i ca n't enjoy it and if i live long the insurer wins + always + this is worth <unk> when insurers and their salesmen try to sell you permanent insurance the kind that <unk> cash value + the word death can not be escaped entirely by the industry but salesmen dodge it wherever possible or <unk> it in <unk> <unk> to talk about savings and investment instead + the implication is that your <unk> policy is really some kind of cd or mutual-fund account with an added feature + that is <unk> the <unk> + the fact is that as a savings or investment vehicle insurance generally runs a poor second to any direct investment you might make in the same things the insurance company is putting your money into + that 's because you have to pay for the insurance portion of the policy and the effort required to sell and service the whole package + again no free lunch + this is reflected in a <unk> mortality cost in effect your share of the company 's estimated liability in paying off beneficiaries of people who had the <unk> to die while under its protection + and in most cases a huge <unk> of your premium in the initial year or two of the the policy is in effect paying the salesman 's commission as well investment returns on most policies are actually negative for several years largely because of this + so view permanent insurance for what it is a compromise between pure insurance and direct investment + the <unk> most traditional form of permanent insurance is the straight whole life policy + you pay a set premium for a set amount of coverage the company invests that premium in a portfolio of its choosing and your cash value and dividends grow over the years + one newer <unk> so called <unk> life you pay for the whole policy at once has been <unk> popular in recent years for tax reasons the insured could extract cash value in the form of policy loans and none of the proceeds were taxable even though they included gains on investment + congress closed this <unk> last year or thought it did + however <unk> capital corp. of <unk> mass. has developed a combination plan of annuity and insurance coverage that it says does not violate the new regulations and that allows policy loans without tax consequences + but the percentage of your cash reserve that you can borrow tax-free is very small + i 'm not prepared in any case to put that much money into a policy immediately so i look into the broad category called universal life + <unk> popular it is far more flexible than straight whole life + i can adjust the amount of insurance i want against the amount going into investment i can pay more or less than the so-called target premium in a given year and i can even <unk> payments if my cash reserves are enough to cover the insurance portion of the policy + in looking at these and other policies i learn to ask pointed questions about some of the assumptions built into policy <unk> the rows of numbers that show me the buildup of my cash values over the years + they commonly give two scenarios one is based on interest rates that the company guarantees usually N N to N N and the other on the rate it is currently getting on investment often N N or more + projecting the latter over several decades i find my cash buildup is impressive but can any high interest rate prevail for that long + not likely i think + also some policy <unk> assume that mortality costs will decline or that i will get some sort of dividend bonus after the <unk> year + these are not certain either + companies are n't comfortable playing these games but they realize they 're under pressure to make their policies look good says timothy <unk> an <unk> consultant at <unk> a unit of towers <unk> co. the big new york consulting firm + another factor to consider some of the companies currently earning very high yields are doing so through substantial investment in junk bonds and you know how nervous the market has been about those lately + there are seemingly endless <unk> to universal life and it pays to ask questions about all of them + at a <unk> <unk> for example a friend boasts that she 'll only have to pay premiums on her john hancock policy for seven years and that her death benefits will then be guaranteed + i call her agent david <unk> + yes he says premiums on such <unk> coverage can be structured to <unk> after a certain period but usually only if interest rates stay high enough to generate sufficient cash to cover the annual cost of insurance protection + if interest rates plunge the insurer may be knocking on my door asking for <unk> premium payments to maintain the same amount of protection + i do n't like the sound of that + some insurers have also started offering <unk> bonuses such as extra dividends or a marginally higher interest yield if the policy is maintained for N years + but glenn daily a new york-based financial consultant warns that many of these bonuses are just <unk> because most are n't guaranteed by the companies + and the feature is so new he adds that no insurer has yet established a track record for actually making such payments + so-called <unk> provisions also merit a close inspection + offered by insurers that include <unk> life insurance co. jackson national life insurance co. and national travelers life insurance co. these policy riders let me tap a portion of my death benefits while i 'm still alive + some provisions would let me collect a percentage of the policy 's face value to pay for long-term care such as <unk> stays others would allow payments for catastrophic <unk> and conditions such as cancer heart <unk> <unk> failure and kidney transplants + but the catastrophic events for which the <unk> can collect are narrowly defined vary from policy to policy and generally permit use of only a small fraction of the face amount of insurance + also financial planners advising on insurance say that to their knowledge there has not yet been a tax ruling <unk> these advance payments from taxes + and considering the extra cost of such provisions some figure that people interested in say paying for extended <unk> care would be better off just buying a separate policy that provides it + i 'm more <unk> impressed by <unk> life even though it turns out to be <unk> life + <unk> selling these policies market them directly to the public or otherwise do n't use commissioned salesmen there is still a load annual administrative fees and initial <unk> charges but i figure that the lack of commission and of surrender fees for dropping the policy early still <unk> me a lot + i compared one universal policy for $ N face amount from such an insurer american life insurance corp. of lincoln neb. with a similar offering from equitable life assurance society of the u.s. which operates through N commissioned salesmen + after one year i could walk away from the <unk> policy with $ N but <unk> get only $ N from the equitable + the difference is magnified by time too + at age N when i 'd stop paying premiums the <unk> offering would have a projected cash value $ N higher than the other even though the equitable 's policy illustration assumed a fractionally higher interest rate + did i buy it + well not yet + i 'm thinking about using the $ N annual premium to finance a trip to paris first + a person can do some heavy thinking about insurance there and shop for something more exciting while she 's doing it + rorer group inc. will report that third-quarter profit rose more than N N from a year earlier though the gain is wholly due to asset sales robert <unk> chairman president and chief executive officer said + his projection indicates profit in the latest quarter of more than $ N million or N cents a share compared with $ N million or N cents a share a year ago + mr. <unk> said in an interview that sales will show an increase from a year ago of somewhat less than N N + through the first six months of N sales had grown about N N from the year-earlier period + growth of N N would make sales for the latest quarter $ N million compared with $ N million a year ago + mr. <unk> said the profit growth in the latest quarter was due to the sale of two rorer drugs + <unk> an <unk> was sold to <unk> plc london + <unk> a drug used to <unk> bleeding was sold to jones medical industries inc. st. louis + he said rorer sold the drugs for nice prices and will record a combined pretax gain on the sales of $ N million + as the gain from the sales indicates operating profit was significantly below the year-earlier level mr. <unk> said + rorer in july had projected lower third-quarter operating profit but higher profit for all of N + he said the company is still looking for a strong fourth quarter in all areas sales operating income and net income + mr. <unk> attributed the decline in third-quarter operating profit to the stronger dollar which reduces the value of overseas profit when it is translated into dollars to accelerated buying of rorer products in the second quarter because of a <unk> july N price increase and to higher marketing expenses for rorer 's <unk> <unk> whose sales and market share in the u.s. had slipped in the first half of N + he said rorer opted to sell <unk> and <unk> to raise revenue that would kick start its increased marketing efforts behind <unk> still its <unk> product with about $ N million in world-wide sales in N + we had <unk> <unk> for a year he said because the company was concentrating on research and development and promoting other drugs + he said rorer will spend $ N million to $ N million more on <unk> advertising and promotion in the second half of N than in the year-earlier period + a big chunk of that additional spending came in the third quarter he said + hoechst ag said it will stop producing fertilizer in N because of continued losses and a bleak outlook + the west german chemical concern said it will close the last remaining fertilizer plant in <unk> in the fall of next year + hoechst said the fertilizer market faces overcapacity in western europe rising imports from east bloc countries and overseas and declining demand + homefed corp. said its main subsidiary home federal savings & loan converted from a federal savings and loan to a federal savings bank and changed its name to homefed bank + the federal office of thrift supervision approved the conversion last friday homefed said + the change in charter does n't alter the federal insurance of deposits federal regulatory powers or company operations a spokesman said + it was the second anniversary of the N crash but this time it was different + stocks rallied on good earnings reports and on data that showed less inflation than expected + blue chips led the march up in heavy trading + the dow jones industrial average rose N points to N + the N industrials led the market higher from the opening bell as foreign buyers stepped in + by afternoon the broader market joined the advance in full strength + standard & poor 's 500-stock index rose N to N and the nasdaq composite index jumped N to N + new york stock exchange volume swelled to N shares + the industrials were up about N points in the afternoon but cautious investors took profits before the close + traders said a variety of factors triggered the rally + the consumer price index rose N N in september while many economists were looking for a N N increase + stock-index arbitrage buy programs in which traders buy stock against offsetting positions in futures to lock in price differences helped the rally 's momentum + the euphoria was such that investors responded to good earnings reports of companies such as american express while ignoring the disappointing profits of companies such as caterpillar analysts said + stock-index arbitrage trading was a minor influence in yesterday 's rally traders said + institutional buyers were the main force pushing blue chips higher + to the <unk> of some traders takeover stocks were climbing again + hilton rose N N to N for example + last friday takeover traders <unk> out of hilton knocking the stock down N N to N + among other stocks involved in restructurings or rumored to be so holiday corp. gained N N to N and honeywell rose N N to N N + one floor trader noted in <unk> that nobody seemed to mind the news that british airways is n't making a special effort to revive the ual buy-out + the announcement of the buy-out 's troubles triggered the market 's nose dive a week ago + takeover enthusiasm may have been renewed when an investor group disclosed yesterday that it had obtained all the financing required to complete its $ N billion leveraged buy-out of american medical international + that 's put some <unk> back into this market said peter <unk> a vice president of equity trading at shearson lehman hutton + but some traders thought there was less to the rally than met the eye + there is no strength behind this rally asserted chung <unk> head trader at kleinwort benson north america + it 's traders <unk> positions + it 's not good the market is setting up for another fall + indeed many traders said that uncertainty about today 's monthly expiration of <unk> futures and options and options on individual stocks prompted a lot of buying by speculative traders who were <unk> positions that were bets on declining stock prices + the number of outstanding contracts in the october major market index jumped from N on friday to N on monday + the mmi is a <unk> index that <unk> the dow jones industrial average + outstanding contracts are those that remain to be liquidated + by wednesday the outstanding october contracts amounted to N representing about $ N billion in stock noted donald <unk> head of stock-index futures research at prudential-bache securities who expects a volatile expiration today + there has been a tremendous increase in mmi positions mr. <unk> said + consumer stocks once again set the pace for blue-chip issues + philip morris added N N to N N in big board composite trading of N million shares coca-cola co. gained N N to N N merck gained N N to N N and american telephone & telegraph advanced N to N N on N million shares + american medical jumped N N to N N + ima acquisition an investor group that includes first boston and the <unk> family of chicago said chemical bank had made arrangements for N other banks to provide $ N million in bank financing for the buy-out offer + chemical and six other banks along with first boston are providing the rest of the $ N billion + elsewhere on the takeover front time warner advanced N N to N N and warner communications tacked on N to N N + the delaware supreme court <unk> a ruling that barred <unk> industries from voting its warner preferred stock as a separate class in deciding on the companies ' proposed merger + paramount communications climbed N N to N N and mca rose N N to N both media companies have long been mentioned as potential acquisition candidates + among other actual and rumored targets woolworth rose N N to N N upjohn went up N N to N N armstrong world industries gained N to N N and <unk> rose N to N N + in addition soo line jumped N N to N N above the $ N a share that canadian pacific offered for the company in a takeover proposal + xtra gained N N to N N + investor robert m. gintel who owns a N N stake in the company said he plans a proxy fight for control of its board + golden nugget rose N to N N + its board approved the repurchase of as many as three million common shares or about N N of its shares outstanding + buying interest also <unk> in the technology sector including international business machines whose board approved a $ N billion increase in its stock buy-back program + ibm rose N N to N N as N million shares changed hands + compaq computer soared N N to N N on N million shares in response to the company 's announcement of plans to introduce several products next month + digital equipment gained N N to N N despite reporting earnings for the september quarter that were on the low end of expectations + among other technology issues cray research rose N N to N hewlett-packard added N N to N N tandem computers rallied N N to N N data general rose N to N N and motorola gained N N to N N + on the other hand symbol technologies dropped N N to N N after shearson lehman hutton lowered its short-term investment rating on the stock and its N earnings estimate and commodore international fell N to N after the company said it expects to post a loss for the september quarter + insurance stocks continued to climb on expectations that premium rates will rise in the aftermath of the earthquake in the san francisco area + american international group climbed N to N N general <unk> rose N N to N N kemper added N N to N <unk> went up N N to N and <unk> rose N N to N N + stocks of major toy makers rallied in the wake of strong third-quarter earnings reports + mattel added N N to N N <unk> firmed N to N N and lewis <unk> toys rose N to N N on the big board while hasbro gained N to N N on the american stock exchange + capital <unk> surged N N to N + kidder peabody raised its investment rating on the stock and its earnings estimates for N and N based on optimism that the company 's abc television network will continue to fare well in the ratings + dun & bradstreet lost N N to N N on N million shares + merrill lynch lowered its short-term rating on the stock and its estimate of N earnings citing a sales slowdown in the company 's <unk> business + pinnacle west capital which suspended its <unk> dividend indefinitely and reported a N N decline in third-quarter earnings fell N to N N + the amex market value index recorded its sharpest gain of the year by climbing N to N + volume totaled N shares + b.a.t industries the most active amex issue rose N to N N + the company received shareholder approval for its restructuring plan designed to fend off a hostile takeover bid from a group headed by financier sir james goldsmith + chambers development class a jumped N N to N N and class b rose N N to N N + the company said six officers are buying a total of $ N million of its stock + <unk> cos. the target of an investigation by the u.s. inspector general dropped N to N N + the probe involves testing procedures used on certain government contracts by the company 's <unk> unit + avondale industries inc. new orleans received a $ N million contract from the navy to <unk> by N N the capacity of an <unk> <unk> + the award results from the navy 's exercising of an option in an earlier contract it awarded avondale + richard j. <unk> was elected to the board of this personnel consulting concern increasing its size to nine members + mr. <unk> is president and chief operating officer of penn mutual life insurance co + the senate rejected a constitutional amendment that president bush sought to protect the u.s. flag from <unk> + the N roll call fell well short of the two-thirds majority needed to approve changes to the constitution + the vote in which N gop lawmakers voted against mr. bush 's position was a victory for democratic leaders who opposed the amendment as an <unk> on the bill of rights + we can support the american flag without changing the american constitution said senate majority leader george mitchell of maine + in order to <unk> pressure for an amendment mr. mitchell and house speaker thomas foley d. wash had arranged for lawmakers to pass a statute barring flag <unk> before voting on the constitutional change + mr. bush said he would allow the bill to become law without his signature because he said only a constitutional amendment can protect the flag adequately + in june the supreme court threw out the conviction of a texas man who set a flag <unk> during a N demonstration saying he was engaging in political expression that is protected by the first amendment + if you think you have stress-related problems on the job there 's good news and bad news + you 're probably right and you are n't alone + a new <unk> poll study commissioned by the new york business group on health found that a full N N of the work force at companies may suffer from anxiety disorders or a stress-related illness with about N N suffering from depression + the study surveyed a national group of medical directors personnel managers and employee assistance program directors about their perceptions of these problems in their companies + it is one of a series of studies on health commissioned by the new york business group a <unk> organization with about N members + the stress study was undertaken because problems related to stress are much more <unk> than they seem said leon j. <unk> executive director of the business group + in <unk> the study late last week dr. <unk> estimated the cost of these types of disorders to business is substantial + <unk> <unk> related to anxiety depression and stress costs about $ N a case in terms of worker 's compensation + in terms of days lost on the job the study estimated that each affected employee loses about N work days a year because of stress anxiety or depression + he added that the cost for stress-related compensation claims is about twice the average for all injury claims + we hope to <unk> employers to recognize the problems so they can do something about them dr. <unk> said + early intervention into these types of problems can apparently save businesses long-term expense associated with <unk> which sometimes results when these problems go <unk> for too long + even the courts are beginning to recognize the link between jobs and stress-related disorders in compensation cases according to a survey by the national council on compensation insurance + but although N N of the respondents in the study indicated that <unk> problems were fairly pervasive in the workplace there is still a social <unk> associated with people seeking help + the disorders which N years ago struck <unk> and older people now strike people at the <unk> of productivity says robert <unk> <unk> of the national institute of mental health who spoke at the presentation of the study 's findings + the poll showed that company size had a bearing on a manager 's view of the problem with N N of those in companies of more than N employees saying stress-related problems were fairly pervasive and N N of those in companies with fewer than N employees agreeing + the poll also noted fear of a takeover as a <unk> event in larger companies + more than eight in N respondents reported such a <unk> situation in their company + <unk> companies were most affected by talk of layoffs or plant closings + the study which received funding from upjohn co. which makes several drugs to treat stress-related <unk> also found N N of the managers said stress anxiety and depression contribute to decreased production + alcohol and substance abuse as a result of stress-related problems was cited by N N of those polled + although dr. <unk> points out that stress and anxiety have their positive uses stress perceived to be threatening implies a component of fear and anxiety that may contribute to <unk> + he also noted that various work environments such as night work have their own <unk> + we all like stress but there 's a limit says paul d'arcy of <unk> <unk> & <unk> a corporate psychology and management consulting firm + the problem says mr. d'arcy a <unk> is that it 's very hard to get any hard measures on how stress affects job performance + for cheap air fares spend christmas <unk> + it is n't true that a <unk> old <unk> on a mission of <unk> to a disaster area on christmas day can fly free + but his circumstances are among the few that can qualify for the handful of really cheap airline tickets remaining in america + in recent years carriers have become much more <unk> about who can fly on the cheap + but there still are a few ways today 's <unk> can qualify under the airline 's many restrictions + one of the best deals though may mean <unk> christmas dinner with the <unk> + this week many carriers are announcing <unk> fares designed to get people to fly on some of the most <unk> and <unk> days of the year including christmas + in recent years the airlines had waited until the last moment to court christmas season <unk> with bargain fares + that approach <unk> last christmas day a usair group inc. <unk> jetliner flew about seven passengers from chicago to pittsburgh + so this year the airlines are getting a jump on holiday discounts + they are cutting ticket prices by as much as N N from normal levels for travel to most u.s. locations on dec. N N N N and N and jan. N N and N + the promotions dubbed everything from <unk> is the season to be <unk> to <unk> fares put <unk> fares at $ N $ N and $ N + they 're trying to keep planes flying on days they 'd normally park them says roger <unk> president of mr. mitchell travel service in <unk> n.c + expect of course <unk> prices on other dates near the holidays when the airlines know <unk> are eager to travel + consider adopting your spouse 's name + if continental airlines has its way couples like <unk> thomas and phil <unk> may find it a <unk> to qualify for some new discounts + continental a texas air corp. unit recently unveiled a marketing program offering free companion tickets to <unk> and <unk> passengers on international flights + the continental catch only immediate family members are allowed and they must have the same last name as the buyer of the ticket or legal proof they 're related + that <unk> many women who have n't taken their <unk> ' last name + what a bunch of nonsense says <unk> <unk> president of the new york chapter of the national association of women business owners + this sets things way back + continental 's logic it does n't want business <unk> <unk> the promotion by <unk> claiming to be related + we accommodate their choice of names by allowing them to demonstrate family <unk> with legal documents says jim <unk> a senior vice president + but <unk> rights advocates are angry too + the <unk> legal defense and education fund of new york city has received complaints from homosexual couples whom the airline does n't recognize as family + it 's certainly discrimination says attorney <unk> <unk> whose group forced trans world airlines this year to change a rule that allowed travelers to transfer frequent <unk> <unk> only to family members + take your vacation in a hurricane area + when hurricane hugo <unk> through the caribbean and the atlantic coast states it <unk> electric and telephone lines shot <unk> through <unk> <unk> shattered windows and <unk> thousands of lives + it also lowered some air fares + since the hurricane <unk> airlines inc. and american airlines a unit of amr corp. trimmed their <unk> fares to the virgin islands to $ N from prices that were at times double that before the storm + the fares are <unk> hugo <unk> and virgin islands aid + airlines are n't lowering fares to northern california following this week 's earthquake but <unk> agents can waive <unk> restrictions on discount fares for emergency trips + some hotels in the <unk> caribbean promise <unk> guarantees + in <unk> beach s.c. the damaged <unk> resort offers daily rates as low as $ N or as much as N N below regular prices + says <unk> hoffman a clerk in the resort 's front office we do n't have the <unk> pool the pool table <unk> <unk> table <unk> bar or <unk> but we still have the <unk> pool and <unk> + just wait until you 're a bit older + senior citizens have long received cheap air fares + this year the older someone is the bigger the discount + a senior citizen between N and N <unk> N N off regular coach fare + travelers up to age N get a percentage discount matching their age + and <unk> fly free in first class + next month northwest airlines says a <unk> <unk> mich. woman is taking it up on the offer to fly with her <unk> son to tampa fla + last year when northwest first offered the promotion only six <unk> flew free + if all else fails + the <unk> carriers also provide discounts to red cross workers retired military personnel and medical students + there 's even a special fare for <unk> that does n't require the usual stay over saturday night + that way they can be home in time for work sunday + the british petroleum co. plc said its <unk> exploration unit has produced the first oil from its don <unk> in the north sea + in an official release <unk> said initial production from the field was N barrels a day and that it expects peak output from the field of N barrels a day to be reached in N + as the sponsor of the older americans freedom to work act which would repeal the social security earnings limit for people aged N and older i <unk> your strong endorsement to repeal this <unk> fossil + for every dollar earned over $ N social security recipients lose N cents of their social security benefits it 's like a N N marginal tax + but the compounded effects of seniors only taxes result in truly catastrophic marginal tax rates + imagine a widow who wants to maintain her standard of living at the same level she had before she had to pay the catastrophic <unk> + although this widow earns only twice the minimum wage largely due to the earnings limit she would have to earn an additional $ N to offset her catastrophic <unk> of $ N + eliminating the earnings limit would greatly help seniors and reduce the deficit + repeal would generate more in new taxes than the government would lose in increased social security benefit payments + we now need support from the democrats on the rules committee in order to include <unk> reform in the reconciliation bill + since all four republicans on the committee are <unk> of my bill it is the democrats who will be held fully <unk> if an earnings test amendment is not allowed from the floor + the time is now to lift the <unk> social security earnings limit from the backs of our nation 's seniors + rep. j. dennis <unk> r. ill + when his seventh avenue fur business here was flying high N years ago jack <unk> had N workers and a large factory + now his <unk> employees work in an <unk> shop that he says is smaller than his old storage room + he also says he is losing money now + he blames imports + but just down seventh avenue where about N N of u.s. fur <unk> are made larry rosen has acquired two retail outlets <unk> his <unk> line and expanded into leather + he credits imports + the difference lies in how the two entrepreneurial furriers reacted to the foreign competition and <unk> of their industry over the past N years + one stuck to <unk> business <unk> while the other embraced the change + the small good fur salon is not what it used to be says mr. <unk> N years old + we make the <unk> product in the world and the americans are being kicked around + mr. rosen though believes imports have <unk> the industry in which he has worked for most of his N years + you 've got some minds here that wo n't think <unk> he says + import competition for u.s. furs has risen sharply since furriers started aggressively marketing <unk> mink and similar <unk> imported furs in recent years + merchants discovered a consumer largely ignored by <unk> furriers the younger woman even in her late <unk> who never thought she could buy a mink + the new market helped boost u.s. fur sales to about $ N billion a year now triple the level in the late 1970s + it also opened the door to furs made in south korea china hong kong and other countries + <unk> furs a large south korean maker says it operates N retail outlets in the u.s. and plans to open N more by the end of next year + mr. <unk> and other <unk> furriers call many of the the imports <unk> and poorly made + high-end u.s. furriers say these imports have n't squeezed them + but <unk> and <unk> furriers like mr. <unk> who once <unk> the <unk> seventh avenue fur district say imports have cut their sales + a woman who once would have saved for two or three seasons to buy a <unk> mink can now get an imported mink right away for less than $ N + yet mr. rosen has turned the import phenomenon to his advantage + early in the decade he saw that fur workers in many foreign countries were willing to work longer hours at lower wages than their american counterparts and were more open to innovation + in N he started a factory in greece + two years later he opened one in west germany + he also noticed that foreign makers were introducing many variations on the traditional fur and he decided to follow suit + by combining his strengths in innovation and quality control with the lower costs of production abroad he says he has been able to produce high-quality goods at low cost + to maintain control over production and avoid <unk> on foreign sources he says he still makes most of his furs in the u.s. + but six years ago he also began importing from the far east + inspired by imports mr. rosen now makes fur <unk> hats and <unk> + this year he produced a men 's line and offers <unk> furs in red cherry red <unk> royal blue and forest green + he has leather jackets from turkey that are lined with <unk> skin and topped off with <unk> <unk> + from asia he has mink jackets with <unk> patterns made by using different <unk> furs + next he will be testing <unk> <unk> called <unk> made in the far east + he plans to <unk> the <unk> to the backs of mink coats and jackets + besides adding to sales <unk> also attract retailers who may buy furs later he adds + other furriers have also benefited from <unk> + seymour <unk> the <unk> owner of <unk> <unk> furs inc. <unk> the reverse side of a persian <unk> to produce a <unk> <unk> <unk> + he says it accounts for N N of total sales + mr. rosen is also pushing retail sales + this year he bought two stores one in brooklyn and one in <unk> + other furriers have also placed more weight on retailing + golden <unk> furs inc. began retailing aggressively eight years ago and now retail sales account for about N N of gross income + in other moves mr. rosen says he bought a truck three years ago to reach more retailers + since then he has expanded his fleet and can now bring his furs to the front door of retailers as far away as the midwest + small retailers who ca n't afford to travel to his new york showroom have become fair game + such moves have helped mr. rosen weather the industry slump of recent years + the industry enjoyed six <unk> years beginning in N but since N sales have <unk> at their $ N billion peak + large furriers such as <unk> inc. fur vault inc. and evans inc. all reported losses in their latest fiscal years + <unk> of the N stock market crash head the list of reasons + in addition competition has <unk> the market with both <unk> and coats driving prices down + the <unk> movement has n't helped sales + warm <unk> over the past two years have trimmed demand too furriers complain + and those who did n't move some production overseas suffer labor shortages + the intensive labor needed to manufacture furs in the u.s. is not as available as it was says mr. <unk> who is starting overseas production + but even those who have found a way to cope with the imports and the slump fear that furs are losing part of their <unk> + people are promoting furs in various ways and taking the <unk> out of the fur business says stephen <unk> <unk> merchandise manager for marshall field 's department store in chicago + you ca n't make a commodity out of a luxury insists mr. <unk> the new york <unk> + he contends that chasing consumers with <unk> imports will harm the industry in the long run by reducing the prestige of furs + but mr. rosen <unk> whatever people want to buy i 'll sell + the name of the game is to move goods + four workers at gte corp. 's headquarters have been <unk> as having hepatitis and city health officials are investigating whether a cafeteria worker may have exposed hundreds of other gte employees to the <unk> infection company and city officials said + the four cases were all reported to gte 's medical director and state and local health authorities + gte shut down its cafeteria tuesday afternoon after testing determined that at least one cafeteria worker employed by gte 's private food <unk> contractor <unk> services inc. was suffering from a strain of the virus officials said + more than N people work in the gte building + the cafeteria remains closed + dr. andrew <unk> city health director said his staff suspects the hepatitis which can be highly <unk> was spread by the cafeteria worker with the virus + the exact strain of hepatitis that the cafeteria worker contracted has n't been determined but should be known by the end of the week dr. <unk> said + hepatitis a considered the least dangerous strain of the virus has been confirmed in at least one gte employee company and city officials said + from a public health point of view we 're relieved because hepatitis a is rarely <unk> said dr. frank <unk> gte 's medical director + it 's a <unk> <unk> though because it is also the most <unk> kind of hepatitis + gte officials began posting warning <unk> about the potential threat to exposure wednesday morning at various places at the company said gte spokesman thomas <unk> + the company has begun offering shots of <unk> <unk> which will <unk> the <unk> symptoms of hepatitis a in anyone who has contracted the disease mr. <unk> said + we 're strongly recommending that anyone who has <unk> in the cafeteria this month have the shot mr. <unk> added and that means virtually everyone who works here + i was <unk> to read the <unk> of facts in your oct. N editorial colombia 's <unk> publisher + it is the <unk> guerrillas who are aligned with the drug traffickers not the left <unk> + this information was <unk> from your own news stories on the region + past colombian government <unk> of the <unk> was due to the drug <unk> ' history of <unk> out <unk> in the <unk> + mary <unk> palo alto calif. + i suggest that the wall street journal as well as other u.s. news publications of like mind should put its money where its mouth is lend computer equipment to replace that damaged at el espectador buy ad space publish stories under the <unk> of el espectador journalists + perhaps an arrangement could be worked out to sponsor el espectador journalists and staff by paying for added security in exchange for exclusive stories + reward el espectador 's <unk> with real support + douglas b. evans + coca-cola co atlanta + <unk> <unk> and george <unk> were elected vice presidents of this soft-drink company + mr. <unk> N years old is the company 's director of quality assurance most recently he served as vice president operations for coca-cola enterprises + mr. <unk> N is manager for corporate manufacturing operations he was assistant vice president at the company + in the wake of a slide in sterling a tailspin in the stock market and a string of <unk> economic indicators british chancellor of the exchequer nigel lawson promised gradual improvement in the u.k. economy + in a speech prepared for delivery to london 's financial community mr. lawson <unk> up current economic policy as a battle to <unk> inflation out of the british economy using high interest rates as the essential instrument to carry out the campaign + two weeks after boosting base rates to N N he pledged that rates will have to remain high for some time to come + mr. lawson also made it clear that he would be watching exchange rates carefully + a sinking pound makes imports more expensive and increases businesses ' expectations of future inflation he argued + in an apparent warning to currency traders who have lately been selling the british currency he stated that the exchange rates will have a major role in the assessment of monetary conditions + in <unk> the current monetary policy of using high interest rates to fight inflation and shore up the pound mr. lawson dismissed other approaches to managing the economy + he said he monitors the <unk> figures but does n't give them paramount importance as some private and government economists have suggested + mr. lawson also dismissed the possibility of imposing direct credit controls on britain 's financial system + mr. lawson 's speech delivered at the lord mayor of london 's annual dinner at mansion house came on the heels of a <unk> period for the u.k. economy + two weeks ago in a campaign to blunt inflation at home and arrest a world-wide plunge in the pound he raised base rates a full percentage point to N N + despite the increase the british currency slid below a perceived <unk> of three marks early last week + it was quoted at N marks in late new york trading wednesday + leading up to the speech was a <unk> of economic statistics suggesting that the british war on inflation will be more <unk> than previously assumed + unemployment in september dropped to N the lowest level since N + while lower <unk> is generally good news the hefty drop last month indicates that the economy is n't slowing down as much as hoped despite a doubling of interest rates over the last N months + meanwhile average earnings in britain were up N N in august over the previous year + another <unk> sign came in a surge in <unk> lending to a record # N billion $ N billion last month a much higher level than economists had predicted + in a separate speech prepared for delivery at the dinner robin <unk> bank of england governor conceded that demand pressures were even more <unk> than had been <unk> when the british economy was heating up last year + he added that there 's no <unk> solution to the economic woes and said tight monetary policy is the right approach + discussing the recent slide in stock prices the central bank governor stated that the markets now appear to have <unk> after the nasty jolt of the 190.58-point plunge in the dow jones industrial average a week ago + although the new york market plunge prompted a <unk> drop in the london financial times-stock exchange N share index mr. <unk> declared that the experience owed nothing to the particular problems of the british economy + specifically he pointed out that compared with the u.s. market the u.k. has far fewer highly leveraged junk-bond financings + discussing future monetary arrangements mr. lawson repeated the thatcher government 's commitment to join the exchange rate mechanism of the european monetary system but he did n't indicate when + <unk> + c. olivetti & co. claiming it has won the race in europe to introduce computers based on a powerful new microprocessor chip unveiled its <unk> computer yesterday + the product is the first from a european company based on intel corp. 's new <unk> <unk> microprocessor which works several times faster than previously available chips + hewlett-packard co. became the first company world-wide to announce a product based on the chip earlier this month but it wo n't start shipping the computers until early next year + an olivetti spokesman said the company 's factories are already beginning to produce the machine and that it should be available in europe by december + what this means is that europeans will have these machines in their offices before americans do the spokesman said + the new chip is a very big step in computing and it is important that olivetti be one of the first out on the market with this product said <unk> <unk> davis an analyst at james capel & co. in london + executives at olivetti whose earnings have been steadily sliding over the past couple of years have acknowledged that in the past they have lagged at getting new technology to market + ms. davis said the new machines could steal some sales away from olivetti 's own minicomputers but would bring new sales among professionals such as engineers stockbrokers and medical doctors + although olivetti 's profits tumbled N N in the first half of this year she believes olivetti 's restructuring last fall and its introduction of new products will begin to bear fruit with an earnings rebound next year especially if it can fulfill its promise to deliver the new machines by december + we think the worst is over in the european <unk> market she said + depending on the type of software and peripherals used the machines can serve either as the main computer in a network of many terminals a role usually filled by a <unk> as a technical workstation or as a very fast personal computer + it 's the missing link in olivetti 's product line between small personal computers and <unk> minicomputers the olivetti spokesman said + he added that olivetti will continue making its <unk> <unk> line + the machines will cost around $ N on average in europe + the intel N chip can process N million instructions per second or mips while intel 's previous N chip could handle only N to N mips + olivetti also plans to sell the <unk> computer in the u.s. starting next year through olivetti usa and through its <unk> <unk> unit which specializes in <unk> <unk> networks + <unk> inc. said it received approval from the french government for its proposed $ N million acquisition of <unk> s.a + the approval <unk> the remaining conditions of the purchase which is expected to close within two weeks + <unk> the second-largest maker of food cans in france had N sales of $ N million + <unk> has N workers at four <unk> manufacturing plants and one plastic container facility + <unk> makes flexible packaging films and machinery and materials for the food and pharmaceutical industries + social security benefits will rise N N next year to keep pace with inflation boosting the average monthly benefit to $ N from $ N the department of health and human services announced + the higher payments will start with social security checks received on jan. N N + supplemental security income payments to the disabled also will rise N N starting with checks received on dec. N N increasing the maximum <unk> payment to $ N from $ N a month + the inflation adjustment also means that the maximum annual level of earnings subject to the wage tax that generates revenue for the social security trust fund will rise to $ N in N from $ N this year + as mandated by law the tax rate will rise to N N in N from N N and wo n't rise any further in the future + this means that the maximum yearly social security tax paid by workers and employers each will rise $ N next year to $ N + beneficiaries aged N through N will be able to earn $ N without losing any social security benefits in N up from $ N this year + the exempt amount for beneficiaries under N will rise to $ N from $ N + the adjustments reflect the increase in the consumer price index for urban wage <unk> and <unk> workers from the third quarter of last year to the third quarter of this year + health-care companies should get <unk> in the third quarter + <unk> houses are expected to report earnings increases of about N N on average for the third quarter despite sales increases of less than N N analysts say + to offset sluggish sales growth companies have been cutting staff mostly through <unk> and slowing the growth in research and development spending + sales growth in the quarter was slowed by mounting pressure from groups of buyers such as hospitals to hold down prices + suppliers were also hurt by the stronger u.s. dollar which makes sales abroad more difficult + in some cases competition has squeezed margins + <unk> <unk> & co. for example faces stiff competition from a japanese supplier in the important <unk> market + the franklin <unk> n.j. company is expected to report sales growth of only N N to N N but should still maintain earnings growth of N N says jerry e. <unk> an analyst with duff & phelps inc + among the first of the group to post results <unk> laboratories said third-quarter net income jumped N N to $ N million or N cents a share from $ N million or N cents a share a year earlier + sales for the company based in <unk> park ill. rose N N to $ N billion from $ N billion + <unk> international inc. yesterday reported net climbed N N in the third period to $ N million or N cents a share from $ N million or N cents a share a year earlier + sales for the <unk> ill. company rose N N to $ N billion from $ N billion + but not every company expects to report increased earnings + <unk> <unk> inc. yesterday said third-quarter net plunged N N to $ N million or N cents a share from $ N million or N cents a share a year earlier + sales fell N N to $ N million from $ N million + the murray hill n.j. company said full-year earnings may be off N cents a share because the company removed a <unk> from the market + in N the company earned $ N a share + the food and drug administration had raised questions about the device 's design + some analysts add that <unk> pressures to reduce health costs will continue to <unk> companies ' bottom lines + takeover speculation which has been <unk> stocks of supply houses may also ease says peter <unk> an analyst with drexel burnham lambert inc + as that <unk> you 're going to see the stocks probably <unk> as well he says + hospitals companies meanwhile are reporting improved earnings + bolstered by strong performances by its psychiatric hospitals national medical enterprises inc. los angeles reported net income of $ N million or N cents a share for the first quarter ended aug. N up from $ N million or N cents a share a year earlier + humana inc. louisville ky. also reported favorable results with net income of $ N million or N cents in the fourth quarter ended aug. N up from $ N million or N cents a year earlier + analysts say the handful of hospital companies that are still publicly traded are benefiting from several trends + most important hospital admission rates are stabilizing after several years of decline + moreover companies have sold off many of their smaller <unk> hospitals and have completed painful restructurings + humana 's revenues for example are being boosted by large increases in <unk> in the company 's health maintenance organizations + says <unk> richter an analyst with dean witter reynolds the <unk> in the publicly traded companies is over + initial claims for regular state unemployment benefits rose to a seasonally adjusted N during the week ended oct. N from N the previous week the labor department said + the number of people receiving regular state benefits in the week ended sept. N decreased to a seasonally adjusted N or N N of those covered by unemployment insurance from N the previous week when the insured unemployment rate also was N N + counting all state and federal benefit programs the number of people receiving unemployment benefits in the week ended sept. N fell to N from N a week earlier + these figures are n't seasonally adjusted + a labor department spokesman said the unusually high number of initial claims for state unemployment benefits reflects the impact of hurricane hugo on southern states particularly north carolina and south carolina + the figure also may reflect initial claims filed by striking nynex corp. workers who have become eligible for unemployment benefits the official said + digital equipment corp. reported a N N decline in net income on a modest revenue gain in its fiscal first quarter causing some analysts to predict weaker results ahead than they had expected + although the second-largest computer maker had prepared wall street for a poor quarter analysts said they were troubled by signs of flat u.s. orders and a slowdown in the rate of gain in foreign orders + the maynard mass. company is in a transition in which it is trying to reduce its reliance on <unk> machines and establish a presence in workstations and mainframes + net for the quarter ended sept. N fell to $ N million or $ N a share from $ N million or $ N a share a year ago + revenue rose N N to $ N billion from $ N billion + digital said a shift in its product mix toward <unk> products and strong growth in workstation sales yielded lower gross margins + a spokesman also said margins for the company 's service business narrowed somewhat because of heavy investments made in that sector + the lack of a strong product at the high end of digital 's line was a significant drag on sales + digital hopes to address that with the debut of its first <unk> computers next tuesday + the new line is aimed directly at international business machines corp + until the new mainframe products kick in there wo n't be a lot of revenue contribution at the high end and that 's hurt us said mark <unk> digital 's director of investor relations + he said unfavorable currency <unk> were also a factor in the quarter + dec shares rose $ N to $ N apiece in consolidated new york stock exchange trading yesterday + but analysts said that against the backdrop of a nearly <unk> rise in the dow jones industrial average that should n't necessarily be taken as a sign of great strength + some cut their earnings estimates for the stock this year and predicted more efforts to control costs ahead + i think the next few quarters will be difficult said steven <unk> of first boston + margins will remain under pressure and when the new mainframe does ship i 'm not sure it will be a big winner + mr. <unk> said he was <unk> his estimate for dec 's current year from $ N a share to well below $ N although he has n't settled on a final number + one troubling aspect of dec 's results analysts said was its performance in europe + dec said its overseas business which now accounts for more than half of sales improved in the quarter + it even took the unusually frank step of telling analysts in a morning conference call that orders in europe were up in double <unk> in foreign-currency terms + that gain probably translated into about N N to N N in dollar terms well below recent quarters ' gains of above N N <unk> jay stevens of dean witter reynolds + that was a disappointment and a sign of overall <unk> softness in europe mr. stevens said + marc <unk> with <unk> securities in new york dropped his estimate of dec 's full-year net to $ N a share from $ N + although overall revenues were stronger mr. <unk> said dec drew down its european backlog and had flat world-wide orders overall + the bottom line is that it 's more hand to mouth than it has been before he said + mr. <unk> said he believes that the <unk> of dec 's new mainframe will occur somewhat more <unk> than many of his investment colleagues expect + he said current expectations are for an entry level machine to be shipped in december with all of the more sophisticated versions out by june + for reasons he would n't elaborate on he said he 's sure that schedule wo n't be met meaning less profit impact from the product for dec in the next few quarters + john r. <unk> contributed to this article + colgate <unk> co. reported third-quarter net income rose N N bolstered by strong sales in its latin american business and surprisingly healthy profits from u.s. operations + colgate said net income for the quarter rose to $ N million or $ N a share on sales that increased N N to $ N billion + in the year-earlier period colgate posted net income of $ N million or N cents a share + last year 's results included earnings from discontinued operations of $ N million or N cents a share + <unk> mark chairman and chief executive officer of colgate said earnings growth was fueled by strong sales in latin america the far east and europe + results were also bolstered by a very meaningful increase in operating profit at colgate 's u.s. business he said + operating profit at colgate 's u.s. household products and personal care businesses which include such well-known brands as colgate <unk> and <unk> <unk> detergent jumped more than N N the company said + mr. mark attributed the improvement to cost savings achieved by consolidating manufacturing operations <unk> together two sales organizations and more carefully focusing the company 's promotional activities + we 've done a lot to improve u.s. results and a lot more will be done mr. mark said + improving profitability of u.s. operations is an extremely high priority in the company + colgate 's results were at the high end of the range of analysts ' forecasts + the scope of the improvement in the u.s. business caught some analysts by surprise + the company 's domestic business especially its household products division has performed poorly for years + analysts say the earnings improvement came from cutting costs rather than increasing sales + for the nine months net increased N N to $ N million or $ N a share + sales rose N N to $ N billion + the company earned $ N million or $ N a share in the year-earlier period + colgate 's N net income included $ N million or N cents a share from discontinued operations + colgate sold its hospital supply and home health care business last year + separately colgate wednesday <unk> an agreement with <unk> corp. a tiny <unk> products and pharmaceutical concern based in <unk> mass. to market in the u.s. four of <unk> 's <unk> <unk> products + the products <unk> and <unk> materials used by <unk> all contain <unk> that is released over time + the move is part of a drive to increase colgate 's business with <unk> a company spokeswoman said + terms of the agreement were n't given + <unk> limited partnership said it completed the sale of its <unk> restaurant franchise system to a subsidiary of metromedia co. for $ N million in cash + <unk> which is nearly <unk> by sam and charles <unk> of dallas said it will distribute proceeds from the sale to unit holders as a <unk> dividend as soon as possible + the <unk> franchise system which generates about $ N million in sales annually represented substantially all of the partnership 's assets + the sale of the system has been challenged in a class-action suit on behalf of unit holders filed last week in a delaware court <unk> said + the company said it believes the suit is without merit + american telephone & telegraph co. unveiled a sweetened pension and <unk> program for management that it hopes will enable it to save $ N million in the next year + at&t also said net income rose N N in the third quarter + at&t said its amended pension program will nearly double to N the number of managers eligible to retire with immediate pension payments + at&t said that based on studies of other companies that have offered retirement plans it expects about one-third of its eligible managers to retire under the new program + at&t said third-quarter net income grew despite stiff competition in all of the company 's markets + net income rose to $ N million or N cents a share from the year-earlier $ N million or N cents a share + revenue edged up to $ N billion from $ N billion + the latest period 's net was reduced $ N million or nine cents a share for a change in depreciation method and <unk> changes in estimates of <unk> lives and net salvage for certain telecommunications equipment + the results roughly matched estimates of securities analysts who were encouraged by at&t increasing its operating margin to N N from N N a year ago because of continued cost-cutting efforts + sales of long-distance services an extremely competitive market rose N N + but the growth was partly offset by lower equipment sales and <unk> and price cuts on some products + under the amended pension program at&t managers who have at least five years of service will have five years added to their age and length of service for pension purposes + managers who retire dec. N will have an additional N N added to their monthly pension for as long as five years or age N whichever comes earlier + an at&t spokeswoman said the company would likely replace about one-third of its managers who choose to retire with new employees + analysts hailed the sweetened pension package which they said had been the subject of rumors for several months + this tells you at&t is serious about continuing to manage their cost structure and is committed to <unk> earnings growth said jack <unk> an analyst with painewebber inc + but other analysts expressed disappointment that the cost-cutting move wo n't result in even greater earnings growth + this is a good move but it only gets you to where people 's expectations already are in terms of earnings growth said joel d. gross an analyst with donaldson lufkin & jenrette + mr. gross said he had hoped that a cost savings of $ N million would result in even greater growth than the N N annual earnings increase at&t has told analysts it expects in the future + at&t said the special retirement option will increase fourth-quarter expenses + but the company said the amount ca n't be determined until it knows how many managers <unk> to retire + at&t said the expense increase will be largely offset by a gain from its previously announced plan to swap its holdings in <unk> c. olivetti & co. for shares in cie <unk> <unk> an italian holding company + for the nine months at&t said net income was $ N billion or $ N a share up N N from $ N billion or $ N a share + revenue gained N N to $ N billion from $ N billion + in composite trading yesterday on the new york stock exchange at&t shares closed at $ N up N cents + when it comes to buying and selling shares westridge capital management inc. takes a back seat to no one + every dollar 's worth of stock in the los angeles money manager 's portfolio is traded seven or eight times a year the firm estimates + that makes it the most active trader among all the nation 's investment advisers according to securities and exchange commission filings + but wait a second + westridge capital is an index fund the type of <unk> long-term investor whose goal is to be nothing more than average + westridge capital 's <unk> trading reflects the changes sweeping through the previously <unk> world of indexing + indexing for the most part has involved simply buying and then holding stocks in the correct mix to mirror a stock market barometer such as standard & poor 's 500-stock index and match its performance + institutional investors have poured $ N billion into stock and bond indexing as a cheap and easy form of investment management that promises to post average market returns + these big investors have <unk> to indexing because relatively few active stock pickers have been able to consistently match the returns of the s&p N or other <unk> much less beat it + and the fees investors pay for indexing run a few pennies for each $ N of assets a fraction of the cost of active managers + that 's because computers do most of the work and low trading activity keeps a lid on commission costs + but today indexing is moving from a passive investment strategy to an increasingly active one + because <unk> managers are no longer satisfied with merely being average they have developed enhanced indexing strategies that are intended to outperform the market as much as three percentage points + indexing has been the most single successful investment concept in the last decade but the index money has been just sort of sitting there says <unk> m. lynn president of <unk> core investors inc. an <unk> based in <unk> n.y + now the interest is in what else can i do with that money + among the <unk> indexing strategies <unk> portfolios can be built around thousands of stocks or just a few dozen rather than being restricted to the s&p N companies + they can ignore the s&p N stocks altogether and focus on particular types of stocks such as smaller companies those paying high dividends or companies in a particular industry state or country + with today 's computer-driven program trading techniques index funds can trade back and forth between stock-index futures and the actual stocks making up indexes such as the s&p N + futures and options also make it possible to build synthetic index funds that do n't actually own a single share of stock but can produce returns that match or exceed the broad stock market + one reason for these <unk> is that indexing 's rapid growth is slowing particularly for those plain <unk> funds that mirror the s&p N + there is n't a <unk> of big investors out there still waiting to get into indexing says p. james <unk> vice president of <unk> investment management co. chicago which offers both indexing and active management services + after <unk> in size in the past five years index funds now hold about N N of the stock owned by pension funds + a further problem is <unk> profits + <unk> funds have become so <unk> that fees they can charge have plunged to almost nothing and in some cases are just that + to land customers for their <unk> stock <unk> business big banks sometimes will throw in basic indexing services for free + it 's like getting a free <unk> when you open an account says <unk> core 's mr. lynn + as a result <unk> have been looking for ways to give investors something more than the average for their money + and many have been successful as in the case of the index fund operated by <unk> westridge capital + westridge capital has used enhanced indexing techniques to beat the s&p N 's returns by N to N percentage points over the past four years with the same risk level as holding the s&p N stocks according to james <unk> the firm 's president + strategies vary for westridge capital which has $ N million under management + the firm sometimes buys s&p N futures when they are selling at a discount to the actual stocks and will switch back and forth between stocks and stock-index futures to take advantages of any <unk> price <unk> + mr. <unk> also goes through periods when he buys stocks in <unk> with options to boost returns and protect against declines + and in some months he buys stock-index futures and not stocks at all + by their nature our trades are very short-term and are going to create high turnover mr. <unk> adds + the more turnover the better for our clients + big <unk> bankers trust co. also uses futures in a strategy that on average has added one percentage point to its enhanced fund 's returns + j. thomas allen president of <unk> advanced investment management inc. agrees it 's a good idea to jump between the s&p N stocks and futures + you 're buying the s&p and you always want to hold the cheapest form of it he says + but some <unk> make little or no use of futures saying that these instruments present added risks for investors + if the futures markets have a problem then those products could have a problem says john <unk> managing director of prudential insurance co. of america 's investment index technologies inc. unit + prudential currently is seeking approval to offer a new fund offering a return equal to the s&p N index plus N of a percentage point + an added feature is that the <unk> improved return would be guaranteed by prudential + there are many other strategies to bolster the returns of index funds + they include + limited risk funds + these guarantee protection against stock market declines while still passing along most gains + here a fund may promise to pay back say $ N of every $ N invested for a year even if the market goes much lower + the fund could invest $ N for one year in treasury bills yielding N N to return the guaranteed $ N + that leaves $ N which could be used to buy s&p N options that will nearly match any gain in the s&p index + manager <unk> funds + say a big investor is interested in growth stocks + instead of hiring one of the many active managers specializing in growth stocks <unk> can design a portfolio around the same stocks the portfolio will be maintained by computer reducing both fees and in theory risk because of the large number of stocks + we see a lot of interest in those kind of things says frank <unk> a vice president of bankers trust + people comfortable with the passive approach are using them for other strategies + tilt funds + this is an index fund with a bet + instead of <unk> the s&p N or some other index exactly some stocks are <unk> or <unk> in the portfolio + one simple approach is to exclude s&p N companies considered bankruptcy candidates this can avoid weak <unk> but also can hurt when a company like chrysler corp. <unk> + another approach an investor with $ N million might use $ N million to buy the s&p N index and spend the other $ N million on a favorite group of stocks + specialized funds + indexes can be constructed to serve social goals such as eliminating the stocks of companies doing business in south africa + other funds have been designed to concentrate on stocks in a geographic area in order to encourage local investment + pennsylvania state employees retirement system for example has about $ N million invested in a fund of N companies that are either <unk> or have N N of their work forces in the state + short interest on the new york stock exchange declined for the second consecutive month this time N N while the american stock exchange reported its third consecutive record month of short interest + the big board reported that short interest dropped to N shares as of oct. N from N shares in <unk> + amex short interest climbed N N to N shares from N shares + for the year-earlier month the big board reported N shares indicating a N N year-to-year rise while the amex reported N shares a N N leap + amex short interest has been heading upward since <unk> with increases in each month since then except at <unk> + traders who sell short borrow stock and sell it betting that the stock 's price will decline and that they can buy the shares back later at a lower price for return to the lender + short interest is the number of shares that have n't yet been purchased for return to lenders + although a substantial short position reflects heavy speculation that a stock 's price will decline some investors consider an increase in short interest bullish because the borrowed shares eventually must be bought back + <unk> in short interest of certain stocks also may be caused partly by <unk> + the figures occasionally include incomplete transactions in restricted stock + the level of negative sentiment measured by the big board short interest ratio slipped to N from last month 's N + the ratio is the number of trading days at the exchange 's average trading volume that would be required to convert the total short interest position + some analysts suggest however that the ratio has weakened in value as an indicator because options and other products can be used to hedge short positions + <unk> corp. led the big board list of largest short volumes with N shares + <unk> has proposed to acquire <unk> corp. consisting of the auto parts division and some debt of <unk> corp. for $ N million of cash and securities + chemical waste management posted the biggest increase in short volume on the new york exchange up N shares to N + bristol-myers squibb co. the entity formed from the recent acquisition of squibb corp. by bristol-myers co. <unk> the largest volume decline N shares to N + short interest in international business machines corp. plunged to N shares from N shares a month earlier + also closely watched is exxon corp. where short interest slid to N shares from N + on a percentage basis germany fund inc. led the gainers leaping to N shares from three shares + transcanada pipelines ltd. led the percentage decliners dropping to N shares from N + the amex short interest volume leader again was texas air corp. rising to N shares from N + <unk> pharmaceutical co. posted the largest volume increase N shares to N + the company is under an investigation concerning procedures to gain food and drug administration approval of generic drugs + <unk> has denied any wrongdoing + the largest volume drop down N shares to N came in shares represented by b.a.t industries plc 's american depositary receipts + the company is facing a takeover proposal from the financier sir james goldsmith + first <unk> fund led the percentage increases rising to N shares from N + nelson holdings international ltd. dropped the most on a percentage basis to N shares from N + the adjacent tables show the big board and amex issues in which a short interest position of at least N shares existed as of mid-october or in which there was a short position change of at least N shares since <unk> + your oct. N editorial <unk> <unk> presidency <unk> states that i was critical of the bush administration 's failure to have any plan in place to respond in a timely fashion to the opportunities to oust manuel noriega presented by the attempted military coup on oct. N + you are absolutely wrong however in <unk> that this position is some kind of <unk> something newly arrived at as a result of reading the opinion polls + my position is one founded on both the facts and the law + although you may have forgotten public opinion about gen. noriega is where it is in large measure because of my investigation of his years of involvement in narcotics <unk> and simultaneous work as a u.s. <unk> + the public made up its mind about gen. noriega largely as a result of the hearings i <unk> in the subcommittee on terrorism and narcotics of the foreign relations committee on feb. N N N and N N and again on april N N + it was during those hearings that the nation first learned the <unk> and <unk> of gen. noriega 's <unk> and of his <unk> relationships with a variety of u.s. government agencies + those hearings also <unk> how gen. noriega was able to use his relationships with these agencies to delay u.s. action against him and to exploit the administration 's <unk> with <unk> the sandinistas to protect his own <unk> + as former ambassador to costa rica francis j. <unk> testified before the subcommittee the reagan administration knew that gen. noriega was involved with narcotics but made a decision in the summer of N to put gen. noriega on the shelf until nicaragua was settled + as the report issued by the subcommittee concluded our government did nothing regarding gen. noriega 's drug business and substantial criminal involvement because the first priority was the contra war + this decision resulted in at least some drugs entering the united states as a hidden cost of the war + unfortunately this problem continued even after gen. noriega 's indictment + throughout N and this year i and others in congress have pressed the u.s. to develop a plan for pushing this <unk> out of panama + <unk> two <unk> in a row have been unwilling and unable to develop any plan military or economic for supporting the panamanian people in their attempts to restore democracy + sen. john kerry d. mass + for vietnamese these are tricky often <unk> times + after years of <unk> economic and political reform was embraced at the end of N but ringing <unk> have yet to be translated into much action + vietnam is finding that turning a <unk> socialist order into a dynamic free market does n't come easy + here is how three vietnamese are coping with change + the tire king + nguyen van chan is living proof that old ways die hard + mr. chan used to be an <unk> in <unk> a private entrepreneur + his business success made him an official target in <unk> days + mr. chan now N years old invented a <unk> <unk> he and his family produced from plastic waste + later he marketed <unk> + both products were <unk> popular + for his troubles mr. chan was jailed three times between N and N + though his operation was registered and used only scrap he was accused of conducting illegal business and <unk> illegal materials + once he was held for three months without being charged + things were supposed to change when vietnam 's economic reforms gathered pace and for <unk> they did + after years of <unk> mr. chan produced a <unk> bicycle tire that <unk> its <unk> rival + by N he was selling thousands of tires + newspapers published articles about him and he was hailed as the tire king + his efforts earned a gold <unk> at a national exhibition and attracted renewed attention from local authorities + district police in N <unk> on his suburban home which he and his large family used as both residence and factory and demanded proof the house and equipment were his + he produced it + that was the first time they lost and i won he says + he was further questioned to determine if he was a real working man or an <unk> + says mr. chan when i showed it was from my own brain they lost for the second time + but a few days later the police accused him of stealing electricity acquiring rubber without permission and buying stolen property + warned he was to be jailed again he fled to the <unk> + his family was given three hours to leave before the house and <unk> were confiscated + with only the clothes they were wearing family members moved to a home owned by one of mr. chan 's sons + after six months on the run mr. chan learned the order for his arrest had been canceled + he <unk> his family in january N and began the long struggle for justice pressing everyone from <unk> municipal officials to national assembly deputies for restoration of his rights + he and his family kept afloat by <unk> <unk> selling fruit and doing odd jobs + mr. chan achieved a <unk> in N and became a minor celebrity again when his story was published in a weekly newspaper + in N N months after the sixth congress formally endorsed <unk> private enterprise district authorities allowed mr. chan to resume work + by late last year he was invited back as the tire king to display his products at a national exhibition + national leaders stopped by his stand to <unk> his <unk> + mr. chan now produces N bicycle and <unk> tires a month and N <unk> of <unk> <unk> in the son 's small house + <unk> people pack the house 's two rooms the <unk> four of their N children with spouses and eight of N <unk> + most sleep on the floor + come <unk> eight family members and two other workers <unk> a sheet of raw rubber that covers the floor of the house and <unk> out onto the street + the <unk> operations also burst out the back door into a small <unk> where an ancient press <unk> rubber solution into a flat strip and newly made tires are cooled in a <unk> filled with water + mr. chan talks <unk> of expanding maybe even moving into the <unk> field + first however he has <unk> business + when district authorities allowed him to resume manufacturing they released only one of his machines + they did n't return the rubber stocks that represent his capital + nor did they return his house and <unk> which he values at about $ N + he wants to recover more than just his property though + i want my dignity back he says + the editor + nguyen <unk> seemed an obvious choice when the vietnamese writers association was looking for a new editor to reform its weekly newspaper van <unk> + after the sixth congress journalists seized the opportunity provided by the <unk> to probe previously <unk> subjects + mr. <unk> N years old had solid <unk> credentials he had lost his official position in the association in he early 1980s because he questioned the <unk> of politics into literature + appointed editor in chief in july N mr. <unk> rapidly turned the <unk> van <unk> into vietnam 's hottest paper + circulation soared as the weekly went way beyond standard literary themes to cover vietnamese society and its <unk> + readers were <unk> by the paper 's <unk> and <unk> by the dark side of life it uncovered + one article <unk> a <unk> struggle by a <unk> <unk> to prove officially he was alive + another described how <unk> officials in <unk> <unk> province one night <unk> through homes and confiscated rice from <unk> <unk> + the newspaper also ran a series of controversial short stories by nguyen <unk> <unk> a former history teacher who <unk> debate over his interpretation of vietnamese culture and took a <unk> <unk> <unk> at writers who had blocked his entry into their official association + van <unk> quickly made influential enemies + those who manage <unk> and a large number of writers reacted badly to the <unk> paper says <unk> nguyen an a literary critic + after months of internal <unk> mr. <unk> was fired last december + his dismissal triggered a furor among intellectuals that continues today + under mr. <unk> van <unk> protected the people instead of the government says nguyen <unk> a <unk> who is the paper 's bureau chief for southern vietnam + the paper reflected the truth + for the leadership that was too painful to bear + the billionaire + nguyen thi thi is vietnam 's entrepreneur of the 1980s + her challenge is to keep her fledgling empire on top in the 1990s + mrs. thi did n't wait for the reforms to get her start + she charged ahead of the government and the law to establish <unk> city food co. as the biggest rice dealer in the country + her success which included <unk> an urban food shortage in the early 1980s helped persuade <unk> to take the reform path + her story is becoming part of local <unk> + a <unk> revolutionary with little education who fought both the french and the <unk> <unk> regime she switched <unk> to commerce after the war + her <unk> were <unk> despite her background + as she rode over regulations only her friendship with party leaders including nguyen van <unk> then <unk> <unk> <unk> city party secretary kept her out of jail + following mr. <unk> 's appointment as <unk> of the party at the sixth congress mrs. thi has become the <unk> of <unk> <unk> the vietnamese version of perestroika + the authorities have <unk> foreign reporters to her office to see an example of the new way of thinking + foreign publications have responded with articles declaring her vietnam 's <unk> woman + some people call me the communist billionaire she has told visitors + actually <unk> mrs. thi is about as poor as almost everyone else in this <unk> land + she has indeed turned <unk> city food into a <unk> conglomerate but the company itself remains state-owned + she manages it with the title of <unk> + the heart of the business is the purchase of rice and other commodities such as corn and coffee from farmers in the south paying with fertilizer farm tools and other items + last year <unk> city food says it bought two million metric tons of <unk> rice more than N N of the country 's output + the company operates a fleet of trucks and <unk> to transport the commodities to its warehouses + a subsidiary company processes commodities into foods such as instant <unk> that are sold with the rice through a vast retail network + in recent years mrs. thi has started to diversify the company taking a N N stake in newly established partly private industrial and commercial bank and setting up <unk> <unk> which owns and operates vietnam 's first oil refinery + mrs. thi says <unk> city food last year increased pretax profit N N to the equivalent of about $ N million on sales of $ N million + she expects both revenue and profit to gain this year + she is almost <unk> about the possibility vietnam 's reforms will create rivals on her home turf + i do n't mind the competition inside the country she says + i am only afraid that with vietnam 's <unk> products we ca n't compete with neighboring countries + the earthquake that hit the san francisco bay area is n't likely to result in wholesale downgrading of bond ratings officials at the two major rating agencies said + standard & poor 's corp. is reviewing debt issued by N california counties and there are potential isolated problems said hyman <unk> a managing director + the agency is preparing a report to be issued today on the earthquake 's impact on the <unk> and <unk> industry + the only securities so far to be singled out are those issued by bay view federal savings & loan + moody 's investors service inc. said it is reviewing with an eye toward a possible downgrade the ratings on bay view federal bonds long-term deposits and the <unk> rating of its parent company bay view capital corp + as for property and casualty insurers moody 's said preliminary estimates suggest that losses should not have a significant impact on most insurers ' financial condition but it raises concerns about potentially substantial risks longer-term + losses from the earthquake are expected to be of similar magnitude to those of hurricane hugo according to moody 's + your oct. N editorial a democratic tax cut contained an error + in the third <unk> it referred to the senators seeking <unk> suggestions from lobbyists for various sectors of the economy + among them <unk> farmers + the only significant commercial <unk> farmers in the u.s. are in hawaii + the hawaii <unk> industry association to which nearly all of them belong has no lobbyist + thomas v. <unk> <unk> <unk> <unk> co + western digital corp. reported a net loss of $ N million or nine cents a share for its first quarter ended sept. N citing factors as <unk> as hurricane damage an advance in graphics technology and the strengthening dollar + in the year-ago period the company earned $ N million or N cents a share on sales of $ N million + sales for the <unk> period fell to about $ N million the maker of computer parts said + nonetheless chairman roger w. johnson said he expects the company to be profitable in the current quarter + we are positioned to come through he said noting that the company 's backlog was up from the previous quarter + in its second quarter last year western digital earned $ N million or N cents a share on sales of $ N million + mr. johnson said western digital 's plant in puerto rico was affected by hurricane hugo losing three days ' production because of the storm which <unk> much of the caribbean island 's infrastructure + although the plant itself was n't damaged mr. johnson said millions of dollars in first-quarter revenue were lost + the revenue will be regained in the current period he added + there are no plans to <unk> a common stock dividend mr. johnson said explaining that the board continues to believe shareholders are best served by <unk> excess cash + mr. johnson said the first-quarter loss also heavily reflected a rapid change in graphics technology that left <unk> channels with too many of the old computer graphics boards and too few new monitors compatible with the new graphics boards + western digital does n't make the monitors + an accelerating move by personal computer manufacturers ' to include advanced graphics <unk> as standard equipment further <unk> <unk> purchases of western digital 's equipment + the other areas of the business storage and <unk> were very good mr. johnson said + he said western digital has reacted swiftly to the movement to video graphics array <unk> graphics technology from the old enhanced graphics <unk> <unk> which has a lower resolution standard technology and now is one of the leading producers of these newer units + other makers of video <unk> equipment also were caught in the <unk> shift he said but we were able to respond much more quickly + still mr. johnson said our stock is grossly undervalued + he said the company has cut operating expenses by about N N over the last few quarters while maintaining research and development at about N N to N N of sales + as part of its reorganization this week western digital has divided its business into two segments storage products including controllers and disk drives and <unk> products which include graphics communications and peripheral control chips + graphics communications and peripheral control chips were combined because increasingly multiple functions are being <unk> by a single chip + storage which includes computer controllers and <unk> disk drives represents nearly two-thirds of the company 's business + disk drives which allow a computer to access its memory generated N N more revenue in the most recent period compared with the fiscal first quarter a year earlier + computer parts are getting ever smaller mr. johnson said a shrinking that has propelled <unk> into position as the fastest-growing segment of the computer business + as smaller and more powerful computers continue to be the focus of the industry he said western digital is strengthening development of laptop parts + next year western digital plans to consolidate its operations from N buildings in irvine into two buildings in the same city a new headquarters and a block away a modern $ N million silicon <unk> fabrication plant + the plan will help the company in its existing joint manufacturing agreement with at&t + about half of western digital 's business is overseas and mr. johnson expects that proportion to continue + plans to <unk> many of the trade barriers within europe in N creates significant opportunities for the company he said particularly since western digital already manufactures there + <unk> on that presence western digital is launching a major effort to develop the <unk> <unk> market in europe + directors of state-owned <unk> <unk> del <unk> approved a <unk> <unk> transaction and a change in the bank 's rules that will help it operate more like a private-sector institution + until now bnl 's top managers and its directors have been appointed by a treasury <unk> + but under the bank 's proposed statutes an assembly of shareholders must approve board members + the bank 's chairman and director general who also sit on the board still would be appointed by the treasury + bnl which is controlled by the italian treasury was rocked by the disclosure last month that its atlanta branch extended more than $ N billion in unauthorized credits to <unk> + the <unk> scandal in which the bank 's management resigned has helped renew calls for privatization or at least an overhaul of italy 's banking system which is about N N state-controlled + in a related move the bank also proposed that board representation be linked more closely to the bank 's new <unk> structure + bnl called a shareholders ' assembly meeting in december to vote on the proposals + bnl has about N <unk> shares that are listed on the milan stock exchange + the shares were suspended from trading following disclosure of the atlanta scandal <unk> the stock exchange regulatory body reportedly will decide soon whether to end the trading suspension + switzerland 's wholesale price index increased N N in september from august and was up N N from a year ago marking the first time this year that the index has fallen below N N on a year-to-year basis the government reported + the government attributed the N N <unk> rise in the index largely to higher energy prices + in august the index was up N N from the previous month and was up N N on a year-to-year basis + the wholesale price index based on N as N was N in september + american express co. posted a N N increase in third quarter net income despite a sharp rise in reserves for third world loans at its banking unit + aided by a sharp gain in its travel business american express said net rose to $ N million or N cents a share from $ N million or N cents a share + the year-earlier figures included $ N million or three cents a share in income from discontinued operations + income from continuing operations was up N N + revenue rose N N to $ N billion from $ N billion + the travel investment services insurance and banking concern added $ N million to reserves for credit losses at its american express bank unit boosting the reserve to $ N million as of sept. N + the bank 's third world debt portfolio totals $ N million down from $ N billion at the end of N + the bank charged off $ N million in loans during the quarter + at the american express travel related services co. unit net rose N N to a record $ N million on a N N revenue increase + the figures exclude businesses now organized as american express information services co + american express card charge volume rose N N + travel sales rose N N led by gains in the u.s. + at <unk> financial services the financial planning and mutual fund unit net rose N N to a record $ N million on a N N revenue gain + assets owned or managed rose N N to $ N billion and mutual fund sales rose N N in the quarter to $ N million + american express bank earnings fell N N to $ N million from $ N million despite a N N revenue gain + the results include $ N million of tax benefits associated with previous years ' third world loan activity compared with $ N million a year earlier + profit rose N N at american express information services to $ N million + shearson lehman hutton holdings inc. as previously reported had net of $ N million <unk> a $ N million loss a year earlier its latest results include a $ N million gain from the sale of an institutional money management business + american express 's share of shearson 's earnings was $ N million after preferred stock dividends it owns about N N of shearson 's common + for the nine months american express said net rose N N to $ N million or $ N a share from $ N million or $ N a share + revenue rose N N to $ N billion from $ N billion + <unk> inc. hampered by a slowdown in its defense sales reported an N N decline in per-share earnings on nearly flat revenue for its third quarter + the aerospace and financial services concern said net income fell N N to $ N million from $ N million + revenue of $ N billion was almost unchanged from last year 's $ N billion + per-share net of N cents down from N cents fell by more than overall net because of more shares outstanding + the company said that improved results in its financial-services sector were <unk> by increased costs in its government contract business lower operating earnings in its <unk> sector and soft automotive markets + net was aided by a lower income tax rate + profit before taxes fell N N to $ N million from $ N million + for the nine months <unk> reported net of $ N million or $ N a share on revenue of $ N billion + a year ago net was $ N million or $ N a share on revenue of $ N billion + the nine-month results included a $ N million special charge in N for an arbitration settlement related to past export sales and $ N million in extraordinary charges in N related to a former line of business and early redemption of debt + <unk> said that <unk> ' results do n't include earnings of <unk> plc a british maker of industrial fasteners but do include interest costs of $ N million on borrowings related to the proposed purchase of <unk> + a federal judge has issued a preliminary injunction against the purchase because of federal trade commission concerns that the transaction would reduce competition in the production of two kinds of <unk> + for the quarter <unk> said aerospace revenue including bell helicopter and <unk> manufacture declined N N to $ N million from $ N million an indication of slowing government defense work + as the hunt brothers ' personal bankruptcy cases <unk> into their second year minpeco s.a. has proposed a deal to settle its huge claim against the troubled texas oil men + but the plan only threatens to <unk> the tension and confusion already surrounding the cases that were filed in september N + the <unk> mineral concern 's $ N million claim stems from N jury award in a case stemming from the brothers ' alleged attempts to corner the N silver market + minpeco now says it is willing to settle for up to $ N million from each brother although the actual amount would probably be much less + although the proposal must be approved by federal judge harold c. abramson w. herbert hunt has agreed to the <unk> mineral concern 's proposal + nelson <unk> hunt is considering it although his attorney says he wo n't do it if the proposal <unk> a tentative settlement he has reached with the internal revenue service which claims the brothers owe $ N billion in back taxes and is by far the biggest creditor in both cases + the tentative agreement between the irs and nelson <unk> hunt is awaiting u.s. justice department approval + under it the former billionaire 's assets would be liquidated with the irs getting N N of the proceeds and the rest being divided among other creditors including minpeco and manufacturers hanover trust co. which is seeking repayment of a $ N million loan + a <unk> proposal has been made in the w. herbert hunt case although he and the irs are at odds over the size of the <unk> debt he would have to pay to the government from future earnings + in both cases minpeco and manufacturers hanover have been fighting <unk> over their shares of the pie + with support from the irs manufacturers hanover has filed suit asking judge abramson to subordinate minpeco 's claim to those of manufacturer hanover and the irs + minpeco has threatened a <unk> of litigation if the manufacturers hanover corp. unit attempts to force such a plan through the court + minpeco said it would n't pursue such litigation if its settlement plan in the w. herbert hunt case is approved by judge abramson who will consider the proposal at a hearing next week + minpeco attorney thomas <unk> <unk> the plan as one step toward an overall settlement of the w. herbert hunt case but <unk> ray attorney for manufacturers hanover called it silly and said he would fight it in court + the thing is so <unk> right now that there 's really no way to say what will happen says justice department attorney <unk> <unk> iii who represents the irs in the case + developments like this are hard to predict + banc one corp. said it agreed in principle to buy five branch offices from trustcorp inc. toledo ohio following the planned merger of trustcorp into society corp. cleveland + the five offices in <unk> and <unk> counties in northern ohio have total assets of about $ N million banc one said + the purchase price will be established after banc one has an opportunity to study the quality of the assets banc one said + society corp. already has branches in the area and selling the trustcorp offices could avoid a problem with regulators over excessive concentration of banking in the two counties after the merger of trustcorp into society according to industry sources + the merger is scheduled to take place in the N first quarter + stock-market fears and relatively more attractive interest rates pushed money-market mutual fund assets up $ N billion in the latest week the sharpest increase in almost two years + the N funds tracked by the investment company institute a washington-based trade group rose to $ N billion a record + the $ N billion increase was the strongest weekly <unk> since january N + the increase was spread fairly evenly among all three types of funds + individual investors represented in the <unk> and broker-dealer fund categories pulled money from the stock market after its big drop last friday and put the money into funds said jacob <unk> vice president and chief economist of the institute + <unk> investors on the other hand reacted to the steep decline in yields on direct money-market instruments following the stock-market decline last friday mr. <unk> said + yields on money funds dropped in the week ended tuesday according to donoghue 's money fund report a <unk> mass. newsletter + the average seven-day compounded yield fell to N N from N N the week earlier donoghue 's said + at the auction of six-month u.s. treasury bills on monday the average yield fell to N N from N N + likewise certificates of deposit on average posted lower yields in the week ended tuesday + the N <unk> money funds rose $ N billion to $ N billion + the N <unk> funds increased $ N billion to $ N billion while N broker-dealer funds increased $ N billion to $ N billion + domestic lending for real estate and property development was the source of bank bumiputra malaysia <unk> 's most recent spate of financial troubles the institution 's executive chairman <unk> basir <unk> said + speaking to reporters this week after bank bumiputra 's shareholders approved a rescue plan <unk> sri basir said heavy lending to the property sector rocked the bank when property prices in malaysia plummeted in N + he said the bank could n't wait any longer for prices to recover and for borrowers to service their loans + so the bank 's board decided to make N billion <unk> dollars us$ N million in provisions for interest payments from loans previously recorded as revenue but never actually received by the bank and to submit a bailout package to <unk> the bank 's <unk> capital + the <unk> he added was similar to the hong kong N <unk> collapse which exposed the involvement of bank bumiputra 's former subsidiary in the colony in the largest banking scandal in malaysia 's history + the subsidiary bumiputra malaysia finance ltd. was left with m$ N billion in bad loans made to hong kong property speculators + both episodes wiped out bank bumiputra 's shareholders ' funds + each time the bank 's N N shareholder <unk> <unk> <unk> or <unk> the national oil company has been called upon to rescue the institution + in five years <unk> which became the dominant shareholder in a N rescue exercise has spent about m$ N billion to <unk> up the troubled bank + <unk> sri basir said the capital restructuring plan has been approved by malaysia 's capital issues committee and central bank + malaysia 's high court is expected to approve the plan + once the plan is approved <unk> sri basir said most of bank bumiputra 's nonperforming loans will have been fully provided for and the bank will be on track to report a pretax profit of between m$ N million and m$ N million for the fiscal year ending march N + for the previous financial year the bank would have reported a pretax profit of m$ N million if it had n't made provisions for the nonperforming loans he said + malaysia 's banking <unk> act prohibited the bank from identifying <unk> borrowers said <unk> sri basir + but public documents indicate N N or more of the bank 's provisions were made for <unk> interest on a m$ N million loan to malaysia 's dominant political party the united <unk> national organization to build its convention and headquarters complex in kuala lumpur + the loan to <unk> was made in september N + we lent a lot of money all over the place said <unk> sri basir who refused to discuss the bank 's outstanding loans to + as well as the m$ N billion in provisions announced on oct. N the restructuring package covers an additional m$ N million in provisions made in earlier years but never reflected in a reduction of the bank 's <unk> capital + at the end of the exercise the cash injection from <unk> will increase the bank 's <unk> capital to m$ N billion after virtually being wiped out by the new provisions + <unk> <unk> might have stepped from a recruiting <unk> for young republicans + white N years old a singer in her church <unk> she <unk> a generation that gave its heart and its vote to ronald reagan + i felt kind of safe she says + no longer + when the supreme court opened the door this year to new restrictions on abortion ms. <unk> opened her mind to democratic politics + then a political <unk> she stepped into a <unk> of pro-choice <unk> house parties and <unk> + now she leads a <unk> abortion-rights campaign in <unk> county for pro-choice democratic gubernatorial candidate james florio + this is one where i cross party lines she says rejecting the anti-abortion stance of rep. florio 's opponent <unk> rep. james courter + people my age thought it was n't going to be an issue + now it has especially for people my age + polls bear out this warning but after a decade of increased republican influence here the new politics of abortion have contributed to a world turned upside down for mr. courter + unless he closes the gap republicans risk losing not only the <unk> but also the assembly next month + going into the 1990s the gop is paying a price for the same conservative social agenda that it used to <unk> democrats in the past + this change comes less from a shift in public opinion which has n't changed much on abortion over the past decade than in the <unk> of the debate + new jersey 's own highest court remains a liberal <unk> against major restrictions on abortion but the u.s. supreme court ruling webster vs. missouri has engaged voters across the nation who had been <unk> from the issue + before july pro-choice voters could <unk> make political decisions without focusing narrowly on abortion + now the threat of further restrictions adds a new <unk> bringing an <unk> in political activity by abortion-rights forces + a recent pro-choice rally in <unk> drew thousands and in a major reversal congress is <unk> a presidential veto and demanding that medicaid abortions be permitted in cases of rape and incest + if webster had n't happened you would n't be here linda <unk> tells a reporter in the <unk> office of the national organization for women + we could have shouted from the <unk> about courter and no one would have heard us + new jersey is a proving ground for this aggressive <unk> movement this year + the <unk> of activists can bring a clash of <unk> + in cherry hill the national abortion rights action league whose goal is to sign up N pro-choice voters targets a union breakfast to build labor support for its cause + the league <unk> seem more a fit with a convention next door of young <unk> <unk> in <unk> than the <unk> union leaders i wish i could go work out says a slim activist + a labor chief speaks <unk> of having to man and woman election day phones + no age group is more sensitive than younger voters like ms. <unk> + a year ago this fall new jersey voters under N favored george bush by N N to N N over michael <unk> according to a survey then by <unk> university 's <unk> institute + a matching <unk> star <unk> poll last month showed a complete reversal + voters in the same age group backed democrat florio N N to N N over republican courter + abortion alone ca n't explain this shift but new jersey is a model of how so personal an issue can become a baseline of sorts in judging a candidate + by a <unk> ratio voters appear more at ease with mr. florio 's stance on abortion and polls indicate his lead widens when the candidates are specifically linked to the issue + the times are my times says mr. florio + the <unk> county congressman still carries himself with a trademark <unk> intensity but at a <unk> in newark 's columbus day parade recently he was <unk> with his wife in the middle of the avenue in the city 's old <unk> ward + after losing by fewer than N votes in the N governor 's race he has prepared himself <unk> for this moment including deciding in recent years he could no longer support curbs on federal funding for medicaid abortions + if you 're going to be consistent and say it is a <unk> protected right he asks how are you going to say an upscale woman who can drive to the hospital or clinic in a nice car has a constitutional right and someone who is not in great shape financially does not + mr. courter by comparison seems a shadow of the confident <unk> who defended oliver north before national cameras at iran-contra hearings two years ago + looking back he says he <unk> by <unk> his personal opposition to abortion instead of <unk> voters that he would n't impose his views on policy as governor + it is a <unk> that <unk> neither side in the debate + he does n't know himself <unk> <unk> of the abortion rights league says of mr. courter 's position + even abortion opponents however angry with mr. florio ca n't hide their frustration with the republican 's <unk> + he does n't want to lead the people says richard <unk> president of new jersey right to life + moreover by stepping outside the state 's pro-choice tradition mr. courter <unk> fears that he is too conservative as well on more pressing concerns such as auto insurance rates and the environment + he hurt himself further this summer by bringing homosexual issues into the debate and by <unk> on this issue and abortion he has weakened his credibility in what is already a <unk> campaign on both sides + elected to congress in N the <unk> mr. courter is part of a generation of young conservatives who were once very much in the lead of the <unk> shift under mr. reagan + like many of his colleagues he did n't serve in vietnam in the 1960s yet embraced a <unk> defense and foreign policy even voting against a N resolution critical of the u.s. mining of nicaraguan harbors + jack kemp and the writers irving <unk> and george <unk> were influences and mr. courter 's own conservative credentials proved useful to the current new jersey gop governor thomas kean in the N republican primary here + the same partnership is now crucial to mr. courter 's fortunes but the abortion issue is only a reminder of the gap between his record and that of the more moderate pro-choice gov. kean + while the warren county congressman pursued an <unk> <unk> agenda in washington gov. kean was <unk> increased income and sales taxes at home and overseeing a near doubling in the size of new jersey 's budget in his eight years in office + kean forces play down any differences with mr. courter but this history makes it harder for the conservative to run against government + mr. courter 's free-market plan to bring down auto insurance rates met criticism from gov. kean 's own insurance commissioner + mr. courter is further <unk> by a record of votes opposed to government regulation on behalf of consumers + <unk> in spanish from his days in the peace corps mr. courter actively courts minority voters but seems oddly over his head + he is warm and <unk> before a puerto rican congress in <unk> park + yet minutes after promising to <unk> hispanics to high posts in state government he is unable to say whether he has ever employed any in his congressional office + i do n't think we do now he says + i think we did + asked the same question after his appearance democrat florio <unk> a staff member by name and explains her <unk> today + when he is presented with a <unk> celebrating the organization 's 20th anniversary he recognizes a photograph of one of the <unk> and recalls time spent together in <unk> + details and <unk> are essential florio + elected to congress as a <unk> baby in N he ran for governor three years later + in the opinion of many he has n't stopped running since even though he declined a <unk> with gov. kean in N + his base in south jersey and on the house energy and commerce committee helped him sustain a network of <unk> committees to preserve his edge + with limited budgets for television in a high-priced market mr. florio 's higher recognition than his rival is a major advantage + more than ever his <unk> and <unk> record is in <unk> with the state + auto insurance rates are soaring + a <unk> fire destroyed part of an interstate highway this summer + in <unk> an important swing area republican <unk> now run on a <unk> promising to keep the county clean and green + mr. florio <unk> this <unk> but at age N the congressman is also a product of his times and losses + he speaks for the death penalty as if reading from exodus N to increase state revenue he focuses not on taxes but on audits to cut waste + <unk> consultants match ads with mr. courter 's team and mr. florio <unk> himself as the lean mean democratic fighting machine of the 1990s + appealing to a young audience he <unk> an old reference to <unk> and <unk> and instead quotes the <unk> dead + the <unk> chosen long strange night may be an apt <unk> to television spots by both candidates intended to <unk> each other as a <unk> + the democratic <unk> fits a pattern of younger reformers arising out of old machines but his ties to <unk> remain a <unk> point because of the county 's past corruption + his campaign <unk> is chosen from elsewhere in the state and faced with criticism of a <unk> bank investment he has so far <unk> the issue by donating the bulk of his profits to his <unk> <unk> <unk> state college + mr. florio 's <unk> on the abortion issue after the webster ruling <unk> some of his old constituency + <unk> <unk> an unlikely but enthusiastic pipe major in an <unk> county irish <unk> band speaks <unk> of mr. florio + i am a <unk> catholic says mr. <unk> a 40-year-old health officer + i ca n't support him because of abortion + bill <unk> sr. N is catholic too but <unk> by mr. florio 's stand on abortion + a security guard at a cargo terminal he wears a sons of italy <unk> and cap celebrating the us N band + i still think the woman has the right to do with her body as she <unk> he says + if you want more opinions ask my wife + she has lots of opinions + consumer prices rose a surprisingly moderate N N in september pushed up mostly by a jump in clothing costs the labor department reported + energy costs which drove wholesale prices up sharply during the month continued to decline at the retail level pulling down transportation and helping to ease housing costs + the report was the <unk> news the financial markets had seen since before the stock market plunged more than N points last friday + the dow jones industrial average rallied on the news closing N points higher at N + bond prices also jumped as traders appeared to read the data as a sign that interest rates may fall + but many economists were not nearly as <unk> + the climb in wholesale energy prices is certain to push up retail energy prices in the next few months they warned + they also said the dollar is <unk> off after a rise this summer that helped to reduce the prices of imported goods + i think inflation is going to pick up through the fall said joel <unk> a specialist on inflation who runs an economic consulting firm here + it has been in what i would describe as a <unk> for the past several months + we 've had <unk> declines in consumer energy prices in each of the past three months and at the wholesale level those are fully behind us now said jay <unk> chief domestic economist at bankers trust co. in new york + because wholesale energy prices shot up by a steep N N last month many analysts expected energy prices to rise at the consumer level too + as a result many economists were expecting the consumer price index to increase significantly more than it did + but retail energy prices declined N N in september + though analysts say competition will probably hold down increases in retail energy prices many expect some of the wholesale rise to be passed along to the consumer before the end of the year + still some analysts insisted that the worst of the inflation is behind + it increasingly appears that N was a temporary inflation <unk> and not the beginning of a cyclical inflation problem argued edward <unk> chief economist at prudential-bache securities inc. in new york + in both N and N consumer prices rose N N + a <unk> in world oil prices last winter sent consumer prices soaring at a N N annual rate in the first five months of this year but the subsequent decline in energy prices has pulled the annual rate back down to N N + mr. <unk> predicted that world business competition will continue to restrain prices + the bottom line is it seems to me that the economic environment has become very very <unk> for a lot of businesses he said + back in N business was operating at fairly tight capacity so businesses felt they could raise prices + now he said a slowdown in economic activity has <unk> demand + the mild inflation figures renewed investors ' hopes that the federal reserve will ease its interest-rate stance + the steep climb in producer prices reported last friday <unk> <unk> about lower interest rates and contributed to the stock market 's N N plunge that day + in the past several days however the u.s. 's central bank has allowed a key interest rate to fall slightly to try to stabilize the markets + analysts say fed policy makers have been wary of <unk> credit too much because they were still uncertain about the level of inflation in the economy + excluding the volatile categories of energy and food leaving what some economists call the core inflation rate consumer prices still rose only N N in september + transportation costs actually fell N N and housing costs gained only N N + apparel prices <unk> up N N but that was after three months of declines + medical costs continued their steep <unk> rising N N after four consecutive months of N N increases + car prices another area that contributed to the steep rise in the wholesale index last month still showed declines at the consumer level + they dropped N N as dealers continued to offer rebates to attract customers + food prices rose N N for the second month in a row far slower than the monthly rises earlier in the year + separately the labor department reported that average weekly earnings rose N N in september after adjusting for inflation following a N N decline in august + all the numbers are adjusted for seasonal fluctuations + here are the seasonally adjusted changes in the components of the labor department 's consumer price index for september + after watching interest in the sport plummet for years the ski industry is trying to give itself a lift + across the country resorts are using everything from <unk> to <unk> <unk> to attract new customers + some have built health <unk> business centers and shopping <unk> so visitors have more to do than ski + and this week the industry 's efforts will go national for the first time when it <unk> a $ N million advertising campaign + such efforts <unk> of only a few years ago are the latest attempts to revive the sagging $ N billion u.s. ski industry + since the start of the decade <unk> sales have grown only N N a year on average compared with N N annual growth rates in the <unk> and <unk> + last season <unk> sales fell for the first time in seven years + by some estimates nearly a fourth of all u.s. ski areas have been forced to shut down since the early '80s + competition and mounting insurance and equipment costs have been the <unk> of many resorts + but another big problem has been the aging of baby boomers + skiing after all has mainly been for the young and <unk> and many baby boomers have <unk> skiing or have too many family responsibilities to stick with the sport + in its new ad campaign created by d'arcy <unk> benton & <unk> inc. chicago the ski industry is trying to change its image as a sport primarily for young white people + one <unk> tv spot features a diverse group of skiers <unk> <unk> down <unk> <unk> senior citizens minorities families with children even a blind <unk> + ski school is great <unk> out a <unk> <unk> in a <unk> as he <unk> down a bunny <unk> + you 'll never know <unk> you try says a black <unk> + we used to show some <unk> <unk> in his <unk> or <unk> going over the edge of a <unk> says <unk> <unk> a spokeswoman for the united ski industries association the trade group <unk> the campaign + ski promotions have traditionally avoided the touchy issue of safety + but the new commercials deal with it indirectly by showing a woman smiling as she tries to get up from a fall + we wanted to show it 's <unk> if you fall says ms. <unk> + most people think if you slip you 'll wind up in a body cast + the ad campaign represents an unusual spirit of cooperation among resorts and ski equipment makers normally they only run ads <unk> their own products and facilities + but in these crunch times for the ski industry some resorts such as the <unk> fire red river and <unk> ski areas in new mexico have even started <unk> skiers to each other 's <unk> and next year plan to sell tickets good for all local <unk> + many resorts also are focusing more on the service side of their business + since N N of skiers are parents many <unk> are building <unk> expanding ski schools and adding entertainment for kids + <unk> colo. now has a <unk> that looks like an old mining town kids can ski through and pan for fool 's gold + for $ N they can enjoy their own <unk> entertainment with dinner without mom and <unk> + a few years ago parents usually had to hire a <unk> or take turns skiing while one spouse stayed with the children + most parents who had to go through that never came back says michael shannon president of <unk> associates inc. which owns and operates the <unk> and nearby <unk> creek resorts + to make skiing more convenient for <unk> visitors several resorts are buying or starting their own travel agencies + in one phone call ski <unk> can make hotel and restaurant reservations buy lift tickets rent ski equipment and sign up for <unk> + and resorts are adding other <unk> such as <unk> restaurants health <unk> and vacation packages with a twist + during winter carnival week for example visitors at sunday river in maine can take a <unk> balloon ride + people these days want something else to do besides ski and sit in the bar says don <unk> executive director of <unk> fire n.m. 's chamber of commerce + the ski industry hopes to increase the number of skiers by N million to about N million in the next five years with its latest ads and promotions + but some think that 's being overly optimistic + for one thing it may be tough to attract people because skiing is still expensive a lift ticket can cost up to $ N a day and equipment prices are rising + and most <unk> still prefer a warm climate for their winter <unk> + an american express co. survey of its travel agents revealed that only N N believe their clients will pick a trip this winter based on the availability of winter sports as opposed to N N who think that <unk> sports will be the deciding factor + even if they could bring in that many new skiers i do n't know if the industry could handle that kind of an increase says i. william berry editor and publisher of the ski industry letter in <unk> n.y + most people will come on the weekend the <unk> will be <unk> and then these new skiers wo n't come back + they did n't play the third game of the world series on tuesday night as scheduled and they did n't play it on wednesday or thursday either + but you knew that did n't you + they are supposed to play the game next tuesday in candlestick park here + the theory is that the stadium damaged by tuesday 's earthquake will be repaired by then and that people will be able to get there + like just about everything else that remains to be seen + aftershocks could intervene + but at least the law of averages should have swung to the favorable side + it may seem <unk> to worry about the world series amid the destruction to the bay area <unk> by tuesday 's quake but the name of this column is on sports so i feel obliged to do so + you might be interested to know that baseball not survival appeared to be the first thought of most of the crowd of <unk> that had gathered at candlestick at N p.m. tuesday a half-hour before game time when the quake struck + as soon as the tremor passed many people <unk> arose and cheered as though it had been a novel kind of <unk> show + one fan <unk> several rows in front of the open <unk> <unk> press section where i was <unk> faced the assembled <unk> and <unk> shouted we arranged that just for you guys + i thought and i 'm sure others did you should n't have bothered + i 'd <unk> through my only previous <unk> with natural disaster a <unk> N or so <unk> ago near <unk> city mich. so i was <unk> for one reaction to such things the urge to talk about them + perhaps <unk> by the daily diet of radio and tv reporters <unk> <unk> into people 's faces and asking how they feel about one <unk> or another fellow reporters and <unk> who <unk> my press <unk> were eager to <unk> + it felt like i was on a station platform and a train went by said one man describing my own reaction + a women said she saw the park 's light standards <unk> + a man said he saw the upper <unk> <unk> + i saw neither + <unk> of good sense to the contrary not <unk> the general <unk> was to believe that the <unk> would be brief and that ball would be played + i was near the top of the stadium and saw a steel <unk> <unk> six feet from where i sat but i stayed put for N or N minutes confessed a friend + i guess i thought this is the world series and i 'm not <unk> <unk> <unk> out + here in the global village though folks do not stay <unk> for long + electrical power was out in <unk> candlestick park but <unk> <unk> and television sets were <unk> + within a few minutes the true extent of the catastrophe was becoming clear + its richter scale measurement was reported as N then N then N + a section of the bay bridge had collapsed as had a part of interstate highway N in oakland + people had died + at N p.m. scheduled game time having passed some fans <unk> let 's play ball + no longer innocent they qualified as <unk> + the stadium was ordered <unk> soon afterward the announcement made over police <unk> cited the power <unk> but it later was revealed that there also had been damage of the sort reported by my friend + outside i spotted two young men <unk> blocks of concrete + pieces of candlestick they said + the crowd remained good <unk> even <unk> + tv reporters interviewed fans in the parking lots while a few feet away others watched the interviews on their portable tvs + the only frenzy i saw was commercial <unk> selling world series <unk> <unk> and dated <unk> were besieged by fledgling speculators who saw future profit in the items + the traffic <unk> out of the park was <unk> + it took me a half-hour to move N feet from my parking spot in an outer lot to an <unk> and an additional hour to reach an inner roadway a <unk> away + the <unk> trip to my airport hotel that had taken N minutes earlier in the day took more than three hours + at my hotel the <unk> power was out some interior <unk> had broken loose and there had been water damage but little else + with <unk> <unk> a hotel across the street the <unk> had been hit harder a large sheet of its concrete <unk> and several window <unk> were torn away + the <unk> staff had <unk> set out <unk> <unk> in the <unk> prepared a <unk> buffet and passed around <unk> and <unk> + i fell <unk> on the lobby floor next to a man wearing a chicago cubs <unk> + i expected him to say i told you so but he already was <unk> + the <unk> consensus was that the earthquake made the world series seem <unk> + my response was that sports rarely are important only <unk> and the quake merely <unk> that fact + should the rest of the series be played at all + sure + the quake and baseball were n't related unlike the massacre of athletes that attended the N olympics + that heavily <unk> event learned nothing from the <unk> experience and seems doomed to repeat it + two <unk> <unk> + this has been widely dubbed the bart series after the local subway line and the bay bridge series + flags fly at <unk> for the death of bart <unk> the late baseball commissioner and now the bay bridge lies in <unk> + a series that was shaping up as the <unk> since the <unk> <unk> diego go of N has become <unk> in the least <unk> way + still its edge is lost + it now will be played mostly for the record and should be <unk> up as quickly as possible without off days + and i will never again complain about a <unk> + the disarray in the junk-bond market that began last month with a credit crunch at campeau corp. has offered commercial banks a golden opportunity to play a greater role in financing billion-dollar takeovers + but two big new york banks seem to have kicked those chances away for the moment with the embarrassing failure of citicorp and chase manhattan corp. to deliver $ N billion in bank financing for a leveraged buy-out of united airlines parent ual corp + for more than a decade banks have been pressing congress and banking regulators for expanded powers to act like securities firms in playing wall street 's lucrative takeover game from giving mergers advice all the way to selling and trading high-yield junk bonds + those expanded powers reached their zenith in july when bankers trust new york corp. provided mergers advice an equity investment and bank loans for the $ N billion leveraged buy-out of northwest airlines parent nwa inc + one of the major selling points used by los angeles financier alfred <unk> in getting the takeover approved was that the deal did n't include any junk bonds + that was seen as an advantage in lobbying airline employees and washington regulators for approval of the contested takeover + all $ N billion in debt for the deal was supplied by banks + charles nathan <unk> of mergers and acquisitions at salomon brothers inc. says it is natural for banks to try to expand beyond their bread-and-butter business of providing senior debt for buy-outs + but the ual collapse he says may tell you it 's not going to work that easily + david <unk> a mergers adviser in la jolla calif. who aided los angeles investor marvin davis on the bids which put both ual and nwa in play as takeover candidates this year says that banks have been preparing to play a larger and larger role in acquisition financing + mr. <unk> says that in the past banks would normally have <unk> N N of a total buy-out price with the loans secured by the target company 's assets + another N N of the borrowed funds would come from the sale to investors of junk bonds which offer less security and typically carry higher yields than bank loans + mr. <unk> 's purchase of nwa mr. <unk> notes was probably the most aggressive to date with bank debt at N N of the purchase price + but mr. <unk> says that citicorp 's failure to deliver on its promise to raise the ual bank debt for a labor-management buy-out group is very <unk> to potential users of a <unk> letter from commercial banks + his client mr. davis used just such a letter from citicorp in pursuing ual citicorp later agreed to work with a competing ual buy-out group + executives of citicorp and chase manhattan declined to comment on either the ual situation or on the changing nature of banks ' role in financing takeovers + in the wake of campeau 's problems prices of junk bonds tumbled throwing into doubt the ability of corporate <unk> to finance large takeovers with the help of junk bond sales + mark <unk> senior managing director at manufacturers hanover trust co. says the <unk> in junk bonds may yet open new business opportunities to banks in <unk> takeovers + but he warns that banks will have to have enough discipline not to make loans that are too risky + in fact manufacturers hanover said in its third-quarter earnings report that fees from <unk> loans to other banks dropped N N to $ N million + we did n't take part in a lot of deals because their credit quality was poor says a bank spokesman + james b. lee head of <unk> and private <unk> at chemical banking corp. said he believes banks can still make a credible offer of <unk> shopping for takeover finance + as evidence he cites yesterday 's arrangement for the final financing of a $ N billion bid for american medical international inc. in which chemical served as both the lead bank and an equity investor + beyond the current weakness in the junk bond market banks have another advantage over investment banks in financing contested takeovers + arthur <unk> jr. a takeover lawyer at fried frank harris <unk> & jacobson notes that a political and emotional bias has developed against junk bonds + one hostile bidder who deliberately avoided using junk bonds was paramount communications inc. in its initial offer to acquire time inc. for $ N billion or $ N a share + a paramount spokesman says that decision was based on the financial not political <unk> of junk bonds + but some observers believe paramount chairman martin davis wanted to avoid the possible <unk> of being perceived as a corporate raider in his controversial bid for time + in the end mr. davis used junk bonds so that he could raise paramount 's bid to $ N a share + some <unk> <unk> said the initial lower bid without junk bonds was a factor in his losing the company + time <unk> paramount by acquiring warner communications inc + the success of the nwa financing and the failure of the ual deal also seem to highlight the important new role in takeover financing being played by japanese banks + japanese banks accounted for N N of the nwa bank debt according to a report by transportation secretary samuel skinner + but it was <unk> rejection by japanese banks that helped seal the fate of the attempt to buy ual + citicorp and chase are attempting to put together a new lower bid + <unk> <unk> chief economist of the institute for financial affairs inc. a tokyo research center on finance and economics says the junk bond market became very jittery and there 's a fear of a coming recession and the possible bankruptcy of lbo companies + <unk> inc. filed suit in federal court here alleging that a group that holds N N of its stock made false deceptive and misleading statements in recent regulatory filings and public announcements + <unk> 's complaint claims that the group led by investor malcolm i. glazer violated securities laws by failing to disclose plans to purchase N N of the company 's shares outstanding and that when the required hart-scott-rodino filing eventually was made it did n't disclose the group 's alleged earlier violation of the so-called <unk> requirements of the law + mr. glazer could n't immediately be reached to comment + but when <unk> last week publicly questioned the <unk> of the group 's filing procedures the rochester n.y. investor said we <unk> with every law and he denied any wrongdoing + the glazer group said in a securities and exchange commission filing in early october that it may seek a controlling interest in <unk> or seek representation on the company 's board + <unk> has said it does n't intend to be acquired by the glazer group or any other party + inland steel industries inc. battered by lower volume and higher costs posted a N N drop in third-quarter earnings + the nation 's <unk> steelmaker earned $ N million or N cents a share compared with $ N million or $ N a share a year earlier when the industry was enjoying peak demand and strong pricing + sales fell to $ N million from $ N billion + the earnings also mark a significant drop from the second quarter 's $ N million or $ N a share + moreover the earnings were well below analysts ' expectations of about $ N a share + in composite trading on the new york stock exchange inland closed yesterday at $ N a share down $ N + the company attributed the earnings drop to lower volume related to seasonal demand and the soft consumer durable market especially in the automotive sector + however the company also lost orders because of prolonged labor talks in the second quarter + third-quarter shipments slipped N N from the year-ago period and N N from this year 's second quarter + profit of steel shipped for the company 's steel segment slid to $ N a ton from $ N a ton a year earlier and $ N a ton a quarter earlier + analysts noted that the disappointing results do n't reflect lower prices for steel products + charles bradford an analyst with merrill lynch capital markets said higher prices for galvanized and <unk> products offset lower prices for bar <unk> and structural steel + structural steel which primarily serves the construction market was especially hurt by a N N price drop mr. bradford said + the company said its integrated steel sector was also hurt by higher raw material repair and maintenance and labor costs + the increased labor costs became effective aug. N under terms of the four-year labor agreement with the united steelworkers union + meanwhile the company 's service center segment which saw operating profit drop to $ N million from $ N million a year ago experienced much of the same demand and cost problems as well as start-up costs associated with a <unk> processing facility in chicago and an upgraded computer information system + inland chairman frank w. <unk> said the company 's short-term outlook is <unk> by uncertainties in the economy and financial markets + however he noted that steel mill bookings are up from early summer levels and that he expects the company to improve its cost performance in the fourth quarter + in the first nine months profit was $ N million or $ N a share on sales of $ N billion compared with $ N million or $ N a share on sales of $ N billion a year earlier + the seismic activity of a financial market bears a <unk> to the seismic activity of the earth + when things are quiet low volatility the structures on which markets stand can be relatively inefficient and still perform their functions adequately + however when powerful forces start shaking the market 's structure the more <unk> it is the better its chance for survival + america 's financial markets do not yet have all the required modern features required to make them fully <unk> + investors lack equal access to the markets ' trading arena and its information + that structural lack is crucial because investors are the only source of market liquidity + and liquidity is what markets need to damp <unk> and aftershocks + in today 's markets specialists on the new york stock exchange and <unk> market makers in the over-the-counter market are the only market participants allowed to play a direct role in the <unk> process + when they halt trading all market liquidity is gone + and when any component of the market cash futures or options loses liquidity the price discovery system the way prices are determined becomes flawed or is lost entirely for a time + last friday the 13th as well as two years ago this week the markets became <unk> + when that happened seismic tremors of fear much like the shock waves created by an earthquake <unk> through the market and increased the market 's volatility + lack of important needed information can cause fear + fear is the father of panic + panic frequently results in <unk> behavior + and in financial markets <unk> behavior is sometimes translated into catastrophe + when market tremors start it is crucial that as much information about transaction prices and the <unk> curve buy and sell orders at various prices be made available to all not just to market makers + because of a lack of information and access many investors including the very ones whose buying power could restore stability and damp volatility are forced to stand on the sidelines when they are most needed because of their ignorance of important market information + to add <unk> power to america 's markets a modern electronic trading system should be implemented that permits equal access to the trading arena and the information that would automatically <unk> such access by investors particularly institutional investors + contrary to some opinions the trading activities of specialists and other market makers do not provide liquidity to the market as a whole + what market makers provide is <unk> a very valuable service + liquidity is not a service + it is a market attribute the ability to absorb selling orders without causing significant price changes in the absence of news + market makers buy what investors wish to sell their business is <unk> these unwanted positions as quickly as possible to other investors and at a profit + as a result while any one customer may purchase <unk> by selling to a market maker which is <unk> for the investor the market as a whole remains in the same circumstances it was before the transaction the unwanted position is still an unwanted position only the identity of the seller has changed + in fact it can be argued that increasing capital commitments by market makers a result of some <unk> crash studies also increases market volatility since the more securities are held by market makers at any given time the more selling pressure is <unk> the market + in an open electronic system any investor <unk> to pay for <unk> access to the trading arena through a registered broker-dealer would be able to see the entire <unk> curve buy and sell orders at each price entered by dealers and investors alike and to enter and execute orders + current quotations would reflect the combined financial judgment of all market participants not just those of <unk> who become extremely <unk> during times of crisis + investors and professionals alike would compete on the level playing field congress sought and called a national market system not yet achieved almost N years ago when it passed the securities reform act of N + last friday 's market gyrations did not result in severe aftershocks + were we smart or just lucky + i 'm not certain + but i am sure we need to maximize our earthquake protection by making certain that our market structures let investors add their mighty <unk> power to our nation 's markets + mr. <unk> is chairman of his own consulting company in <unk> n.j + now you see it now you do n't + the recession that is + the economy 's <unk> steps leave investors wondering whether things are slowing down or speeding up + so often are government statistics revised that they seem to resemble a <unk> weather <unk> + for the past seven years investors have had the wind at their backs in the form of a generally growing economy + some may have forgotten and some younger ones may never have experienced what it 's like to invest during a recession + different tactics are called for as losing money becomes easier and making money becomes tougher + for those investors who believe or fear that N will be a recession year many economists and money managers agree on steps that can be taken to lower the risks in a portfolio + in a <unk> pros advise investors who expect a slowdown to hold fewer stocks than usual and to favor shares of big companies in defensive industries + a heavy <unk> of cash is prescribed along with a <unk> <unk> to bonds <unk> government bonds + it 's <unk> to think these defensive steps can be delayed until a recession is clearly at hand + but that may not be possible because recessions often take investors by surprise + they always seem to come a bit later than you expect + when they do hit they hit fast says david a. wyss chief financial economist at the data resources division of mcgraw-hill inc + though he himself does n't expect a recession soon mr. wyss advises people who do that the best thing to be in is long that is 20-year to 30-year treasury bonds + the reason is simple mr. wyss says interest rates almost always decline during recession + as surely as a <unk> <unk> falling interest rates force up the price of previously issued bonds + they are worth more because they pay higher interest than newly issued bonds do + that effect holds true for both short-term and long-term bonds + but short-term bonds ca n't rise too much because everyone knows they will be redeemed at a <unk> price fairly soon + long-term bonds with many years left before maturity swing more widely in price + but not just any bonds will do + corporate bonds are usually not a good bet in a recession mr. wyss says + as times get tougher investors <unk> about whether companies will have enough money to pay their debts + this <unk> the price of corporate bonds + also he notes most corporate bonds are callable + that means that a corporation after a specified amount of time has passed can buy back its bonds by paying investors the face value plus in some cases a <unk> + when interest rates have dropped it makes sense for corporations to do just that they then save on interest costs + but the investors are left <unk> with money to reinvest at a time when interest rates are <unk> + if corporate bonds are bad in recessions junk bonds are likely to be the worst of all + it 's an <unk> necessity to get out of junk bonds when a recession is in the <unk> says <unk> <unk> professor of finance at cornell university + such bonds are very sensitive to the downside and this could be a disaster + municipal bonds are generally a bit safer than corporate bonds in a recession but not as safe as bonds issued by the federal government + during an economic slump local tax revenues often go down raising the risks associated with at least some municipals + and like <unk> many municipal bonds are callable + but a few experts going against the consensus do n't think bonds would help investors even if a recession is in the <unk> + one of these is jeffrey l. beach director of research for <unk> <unk> & co. a brokerage house in houston who thinks that we 're either in a recession or about to go into one + what 's more he thinks this could be a <unk> recession than usual once the downturn comes it 's going to be very hard to reverse + investors he advises should be cautious holding fewer stocks than usual and also <unk> bonds + because he sees a N N to N N base rate of inflation in the economy he doubts that interest rates will fall much any time soon + instead mr. beach says investors probably should be carrying a very high level of cash by which he means such so-called cash equivalents as money-market funds and treasury bills + <unk> <unk> president of <unk> financial inc. in <unk> pa. also recommends that investors go heavily for cash + he is n't sure a recession is coming but says the other likely alternative <unk> inflation is just as bad + this late in an expansion the economy tends to <unk> off either into damaging inflation or into a recession mr. <unk> says + the federal reserve board 's plan for a soft landing he says requires the fed to <unk> an <unk> <unk> + a soft landing is n't something that can be achieved once and for all mr. <unk> adds + it has to be engineered over and over again month after month + he believes that the task facing fed chairman alan greenspan is so difficult that it resembles <unk> a <unk> <unk> and a <unk> saw + and in a sense that 's the kind of task individuals face in deciding what to do about stocks the mainstay of most serious investors ' portfolios + it comes down to a question of whether to try to time the market + for people who can ride out market waves through good times and bad stocks have been rewarding long-term investments + most studies show that <unk> investors historically have earned an annual return from stocks of N N to N N including both dividends and price appreciation + that 's well above what bonds or bank certificates have paid + moreover because no one knows for sure just when a recession is coming some analysts think investors should n't even worry too much about timing + trying to time the economy is a mistake says david katz chief investment officer of value <unk> management inc. in new york + mr. katz notes that some economists have been predicting a recession for at least two years + investors who <unk> and <unk> up on stocks have just hurt themselves he says + mr. katz adds that people who jump in and out of the stock market need to be right about N N of the time to beat a <unk> strategy + frequent trading runs up high commission costs + and the <unk> might miss the sudden <unk> that account for much of the stock market 's gains over time + still few investors are able to sit tight when they are convinced a recession is coming + after all in all five recessions since N stocks declined + according to <unk> davis president of <unk> davis research inc. in <unk> fla. the average drop in the dow jones industrial average was about N N and the decrease began an average of six months before a recession officially started + by the time a recession is official two consecutive quarters of declining gross national product much of the damage to stocks has already been done and in the typical case the recession is already half over + about six months before a recession ends stocks typically begin to rise again as investors anticipate a recovery + the average recession lasts about a year + unfortunately though recessions vary enough in length so that the average ca n't <unk> be used to guide investors in timing stock sales or purchases + but whatever their advice about timing none of these experts recommend <unk> stocks entirely during a recession + for the portion of an investor 's portfolio that stays in stocks professionals have a number of suggestions + mr. katz advocates issues with low price-earnings ratios that is low prices in <unk> to the company 's earnings per share + low <unk> stocks he says <unk> outperform others during a recession or bear market + in good times he says they lag a bit but overall they provide superior performance + prof. <unk> urges investors to <unk> stocks in small companies + <unk> shares typically fall more than <unk> stocks in a recession he says + and in any case he argues stocks of small companies are almost as <unk> as they were sept. N N just before the crash + for example mr. <unk> says stocks of small companies are selling for about N times cash flow + cash flow basically earnings plus depreciation is one common gauge of a company 's financial health + that ratio is <unk> close to the ratio of N that prevailed before the N stock-market crash mr. <unk> says + and it 's way above the ratio N times cash flow that bigger companies are selling for + another major <unk> in making a portfolio <unk> is choosing stocks in defensive industries + food tobacco drugs and utilities are the classic examples + recession or not people still eat smoke and take medicine when they 're sick + george <unk> iii editor of turnaround letter in boston offers one final tip for <unk> investors + keep some money available for opportunities he says + if the recession does hit there will be some great investment opportunities just when things seem the <unk> + mr. dorfman covers investing issues from the wall street journal 's new york bureau + some industry groups consistently weather the storm better than others + the following shows the number of times these industries outperformed the standard & poor 's 500-stock index during the first six months of the past seven recessions + bond prices posted strong gains as investors went on a bargain hunt + but while the overall market improved the new-issue junk-bond market continued to count <unk> even as junk-bond prices rose + yesterday prudential-bache securities inc. said it postponed a $ N million senior subordinated debenture offering by york international corp + and donaldson lufkin & jenrette securities corp. scrambled to restructure and improve the potential returns on a $ N million debenture offering by chicago & north western acquisition corp. that was still being negotiated late last night + the issue by chicago & north western is one of the so-called good junk-bond offerings on the new-issue calendar + some analysts said the restructuring of the railroad concern 's issue shows how tough it is for underwriters to sell even the junk bonds of a company considered to be a relatively good credit risk + since last week 's junk-bond market debacle many new issues of high-yield high-risk corporate bonds have either been scaled back delayed or dropped + on wednesday drexel burnham lambert inc. had to slash the size of continental airlines ' junk-bond offering to $ N million from $ N million + salomon brothers inc. has delayed grand union co. 's $ N billion junk-bond offering while it <unk> the transaction + last week the grand union offering was sweetened to include warrants that allow bondholders to acquire common stock + prudential-bache said the york issue was delayed because of market conditions + everything is going through <unk> right now and chicago & north western is no exception said <unk> <unk> vice president high-yield research at citicorp + portfolio managers say <unk> like equity <unk> and <unk> <unk> <unk> may increasingly be required to sell junk-bond deals + dan baldwin managing director of high-yield investments at chancellor capital management said the chicago & north western offering was restructured in part because several large insurance buyers right now are demanding equity as part of the package + if you 're going to take the risk in this market you want something extra + mr. baldwin likes the offering + but several mutual-fund managers nervous about the deteriorating quality of their junk-bond portfolios and shy about buying new issues said they 're staying away from any junk security that is n't considered first rate for its class + while they consider the chicago & north western issue to be good they do n't view it as the best + to lure buyers to the chicago & north western bonds portfolio managers said donaldson lufkin sweetened the transaction by offering the bonds with a <unk> interest rate and a N N equity <unk> + the bonds are expected to have a N N N coupon rate + the equity arrangement apparently would allow bondholders to buy a total of N N of the stock of cnw corp. chicago & north western 's parent company + donaldson lufkin declined to comment on the restructuring + according to some analysts familiar with the negotiations the N N of equity would come directly from donaldson lufkin and a fund affiliated with the investment bank blackstone group which would reduce their cnw equity holdings by N N each + that would leave the blackstone fund with a N N stake and donaldson lufkin with N N + despite the problems with new issues high-yield bonds showed gains in the secondary or <unk> market + junk bonds ended about one-half point higher with so-called high-quality issues from rjr capital holdings corp. and <unk> gas service limited partnership rising one point + in the treasury market the benchmark 30-year bond rose <unk> point or $ N for each $ N face amount + the gain reflects fresh economic evidence that inflation is <unk> while the economy <unk> + that raised hopes that interest rates will continue to move lower + the labor department reported that consumer prices rose just N N last month slightly lower than some economists had expected + but there were also rumors yesterday that several japanese institutional investors were shifting their portfolios and buying long-term bonds while selling <unk> treasurys + short-term treasury securities ended narrowly mixed with two-year notes posting slight declines while three-year notes were slightly higher + yesterday the fed executed four-day matched sales a technical trading operation designed to drain reserves from the banking system + the move was interpreted by some economists as a sign that the fed does n't want the federal funds rate to move any lower than the N N N at which it has been <unk> around during the past week + the closely watched funds rate is what banks charge each other on overnight loans + it is considered an early signal of fed credit policy changes + the fact that they did four-day matched sales means they are not in a mood to ease aggressively + they are telling us that N N N is as low as they want to see the fed funds rate said robert <unk> at <unk> bank plc + treasury securities + the benchmark 30-year bond was quoted late at a price of N N to yield N N compared with N N to yield N N wednesday + the latest 10-year notes were quoted late at N N to yield N N compared with N N to yield N N + short-term rates rose yesterday + the discount rate on three-month treasury bills rose to N N from N N wednesday while the rate on six-month bills rose to N N from N N + meanwhile the treasury sold $ N billion of 52-week bills yesterday + the average yield on the bills was N N down from N N at the previous 52-week bill auction sept. N + yesterday 's yield was the lowest since N N on july N + here are details of the auction + rates are determined by the difference between the purchase price and face value + thus higher bidding narrows the investor 's return while lower bidding widens it + the percentage rates are calculated on a <unk> year while the <unk> yield is based on a <unk> year + corporate issues + junk bond price climbed yesterday despite <unk> in the new-issue market for high-yield securities + dealers said junk bond issues on average were up by N to N point with so-called quality issues from rjr capital holdings corp. and <unk> gas service limited partnership posting <unk> gains + <unk> gas service 's N N N debentures traded at N after trading around par earlier this week and rjr 's N N N subordinated debentures of N were at N N after trading at below par earlier this week + investment-grade bonds were unchanged + municipals + activity was brisk in the high-grade general obligation market as a series of sell lists hit the street and capped upward price movement in the sector + traders estimated that more than $ N million of high-grade bonds was put up for sale via <unk> lists circulated by a handful of major brokers + there was speculation that the supply was coming from a commercial bank 's portfolios + according to market participants the bonds were met with decent bids but the volume of paper left high grades in the 10-year and under maturity range unchanged to N percentage point higher in yield + away from the general obligation sector activity was modest + long dollar bonds were flat to up N point + new jersey turnpike authority 's N N issue of N was up N at N N bid to yield about N N down N percentage point + the debt of some california issuers pulled off lows reached after tuesday 's massive earthquake although traders said market participants remained cautious + california expects to rely on federal emergency funds and its $ N billion in general fund reserves to meet the estimated $ N million to $ N billion in damages resulting from the quake according to a state official + it 's also unclear precisely how the state will rebuild its reserve said <unk> katz assistant director of california 's department of finance although she noted that a bond offering for that purpose is n't anticipated + meanwhile new issuance was slow + the largest sale in the competitive arena was a $ N million issue of school financing bonds from the virginia public school authority + a balance of $ N million remained in late <unk> according to the lead manager + mortgage-backed securities + mortgage securities generally ended N to N point higher but lagged gains in the treasury market because of a shift in the shape of the treasury yield curve and rumored mortgage sales by thrifts + premium government national mortgage association securities with coupon rates of N N and higher actually declined amid concerns about increased prepayments because of a plan being considered by congress to speed the refinancing of <unk> mortgages + ginnie mae N N securities were down about N at N N + if the refinancing plan clears congress there could be fairly heavy prepayments on the premium securities hurting any investor paying much above par for them + in the <unk> sector a shift in the treasury yield curve resulting from the better performance of <unk> issues over <unk> securities hurt major coupons because it will become more difficult to structure new derivative securities offerings + ginnie mae N N securities ended at N N up N and federal home loan mortgage corp. N N securities were at N N up N + the ginnie mae N N issue was yielding N N to a 12-year average life assumption as the spread above the treasury 10-year note widened N percentage point to N + while remic issuance may slow in the coming days because of the shift in the treasury yield curve underwriters continued to <unk> out new real estate mortgage investment <unk> structured when the yield curve was more favorable + two new remics totaling $ N million were announced by freddie mac yesterday + foreign bonds + british government bonds ended little changed as investors <unk> an economic policy address last night by chancellor of the exchequer nigel lawson + the treasury N N N bond due N was down N at N N to yield N N while the N N N notes due N were unchanged at N N to yield N N + in japan the bellwether no. N N N bond of N ended off N at N to yield N N and in west germany the N N benchmark issue due october N ended N point lower at N to yield N N + the <unk> approaches makes his pitch + it may be <unk> he wants money for food or <unk> <unk> his sister is at this very moment near death in <unk> he has lost his <unk> and has only $ N in change to put toward a bus ticket costing $ N and wo n't you give him the difference + no + well how about a loan he 'll take your name and address + figuring that their money would more likely go toward a bottle of night train express most people have little trouble saying no to <unk> like this + but healthy skepticism <unk> when they are <unk> by an organized charity to help fight cancer <unk> child abuse or what have you + most see little reason to doubt that their cash will go toward these noble goals + but will it + in a <unk> number of cases no + in fact the <unk> sometimes might be better off giving the money to the <unk> at least he has no overhead and he might even be telling the truth + last year more than $ N billion was donated to the nation 's N charities + while the vast bulk of it was indeed spent by reputable organizations on the good works it was raised for it 's equally true that a sizable <unk> was consumed in expenses claimed by other operators including fraudulent expenses + in many cases the costs claimed were so high that only a <unk> of cash was left for the <unk> beneficiaries + it 's impossible to say exactly how much of the total charity <unk> is <unk> by <unk> fund-raising costs <unk> operators and downright fraud + but the problem clearly is widespread and persistent + state law enforcers can barely keep up with charity scams and reports from <unk> groups such as the council of better business bureaus are not encouraging + the <unk> advisory service of the <unk> reviews hundreds of new charities every year measuring them against minimum standards for accountability for <unk> and honesty in solicitation and for percentage of funds actually going to work for which the charity was supposedly established + the service figures at least half of the money taken in should be spent on program + roughly a third of the charities reviewed <unk> the test + which it should be added does n't prevent the charities from <unk> in a lot of money anyway + without a <unk> and a subpoena it 's often hard to sort out <unk> causes from <unk> if all you 've got to go on is the solicitation itself + on this basis there 's no way the average person can know a good charity from a bad one says david <unk> an assistant attorney general in connecticut + a lot of <unk> just get taken + including those he contends who put about $ N million into the <unk> for the connecticut association of concerned veterans and the vietnam veterans service center + the state has sued these charities in state court complaining that much of the money was grossly <unk> N N says mr. <unk> went to fund <unk> and most of the rest to the people who ran the charities and to their <unk> for fur coats trips to florida <unk> restaurant <unk> + the telephone number for the charity in <unk> conn. has been <unk> and the former officials could n't be located + running a charity does cost money but reputable organizations manage to get the lion 's share of donations out to where they are really needed + the <unk> foundation the american cancer society and the united way of america all say that they spend roughly N N of their income on programs not overhead + with some other charities however it s the other way around + the fledgling national children 's cancer society for example took in $ N million last year to finance <unk> transplants for children + by the time it paid its expenses it only had $ N left not enough to treat even one child + the state of illinois is suing the charity for fraud in chicago along with <unk> marketing inc. its <unk> fund <unk> + both deny wrongdoing + the charity admits spending a lot on fund raising but says that was necessary to establish a <unk> base it can tap at much lower cost in years to come + michael burns president of <unk> says his concern has only benefited from the publicity surrounding the case noting that three other charities have signed on as clients because they were impressed with the amount he raised for national children 's + meanwhile a state court judge has allowed the charity to go on soliciting funds + enforcers ca n't put charities out of business simply because they spend the lion 's share of their income on fund raising + state laws previously used as a <unk> minimum <unk> of income usually half that had to be spent on the program rather than overhead but these have been <unk> by the u.s. supreme court + it has ruled that such laws might work to <unk> fund raising which would amount to limiting the charities ' <unk> right to freedom of expression + this puts upon enforcers the burden of proving outright fraud or <unk> and such actions have been brought against hundreds of charities recently + the attorney general 's office in connecticut alone has put seven of them out of business over the past couple of years and the enforcement drive is continuing there and elsewhere + in making cases the authorities frequently zero in on alleged <unk> made by the charities ' fund <unk> + illinois for instance currently has under investigation N of the N companies <unk> up funds for charities soliciting there + enforcers pay special attention to operators using <unk> prizes as an additional <unk> to give + attorneys general in several states including illinois are already suing watson & <unk> co. an <unk> <unk> outfit that they say has used deceptive <unk> ads to <unk> donations for the american heart disease foundation and the cancer fund of america + according to the illinois attorney general 's suit watson & <unk> sent <unk> indicating that recipients were guaranteed cash prizes and could win up to an additional $ N on top of them if they contributed as little as $ N + but the total value of the prizes was only $ N and most winners will receive just N cents according to the attorney general 's office + the suit is still pending in illinois state court + watson & <unk> has denied the allegations in court officials decline to comment further + while they can target some of the most obvious <unk> enforcers concede that they are only <unk> the surface + there are so many <unk> <unk> used by so many dubious operators they say that it is probably impossible to stop them all + one maneuver the public education <unk> + the solicitation material indicates that donations will go toward a campaign <unk> and <unk> the public about some health or other issue + what it does n't say is that the entire campaign may be the fund-raising letter itself + all too often this will merely be a statement on the solicitation such as do n't smoke or wear <unk> <unk> says william webster attorney general of missouri + by putting these <unk> statements on the <unk> hundreds of thousands of dollars are claimed to have been spent on education to consumers when in fact this represents the costs of sending the newsletters + mr. webster cites a <unk> mailing from the united cancer council that offers a chance to win $ N in gold bullion to those giving as little as $ N to cancer education + a few <unk> warnings about cancer appear but that 's only two inches in all four pages + i think some people may believe they 're helping fund a massive tv and print campaign but we could n't find that the charity does anything except write these letters he says + officials at the washington <unk> charity did n't return repeated phone calls + many <unk> charities ride the <unk> of the biggest best-known and most reputable ones by adopting names similar to theirs + the established charities are bothered by this but say they can do little about it + we ca n't police the many organizations that have <unk> up in the last few years using part of our name + most of them do n't last for long but in the meantime all we can do is tell people they are n't connected with us says a spokeswoman for the american heart association + and sometimes a reputable charity with a household name gets used and does n't even know it + a couple in <unk> ill. raised $ N earlier this year using the name and <unk> of mothers against drunk driving without permission from the group + <unk> did n't learn of the fund raising until the couple sent it a check for $ N along with a letter saying that was the charity 's share + the illinois attorney general won a court order to prevent the couple from raising further funds without <unk> 's permission + the couple could n't be reached for comment and apparently have left <unk> law enforcement officials report + <unk> mcdonald a spokeswoman for <unk> says it 's scary because anybody could do this + mr. johnson is a staff reporter in the wall street journal 's chicago bureau + overhead costs at some of the largest charities in millions of dollars + british airways plc a crucial participant in the proposed buy-out of ual corp. <unk> its hands of the current efforts to revive a bid for the parent of united airlines + specifically the british carrier said it currently has no plans to participate in any new offer for ual + in addition british air officially withdrew its support for the previous $ 300-a-share bid in a <unk> statement that said the original deal is closed + company officials said later that british airways believes its involvement in the ual buy-out ended last friday when the buy-out group which also includes ual 's management and pilot union failed to obtain financing for the $ N billion transaction + the carrier stopped short of saying it would n't at some point reconsider participating in any new bid for ual + however company officials said they plan to take no initiatives to <unk> the transaction and are n't aware of any restructured bid in the making + <unk> the statements raised questions about whether a new bid for ual will ever get off the ground + the transaction has had a series of setbacks since the financing problems became known last friday with no signs or statements from the buy-out group to indicate that any progress has taken place + however in response to the british air decision united 's pilot union vowed to continue efforts to revive the buy-out + pilot union chairman frederick c. <unk> said advisers to ual management and the union will begin meeting in new york today and will work through the weekend to devise a new proposal to present to ual 's board at the earliest time possible + pilot union advisers appeared confident that a new bid could go forward even without british air 's participation + ual declined to comment on british air 's statement + ual chairman stephen m. wolf who is leading the management end of the buy-out has n't provided investors with any assurances about the prospect of a new deal + in another setback yesterday united 's <unk> union asked the treasury department to investigate whether certain aspects of the original buy-out proposal violated tax laws + in an effort to <unk> the buy-out the union has already called for investigations by the securities and exchange commission transportation department and labor department + but there was one bright spot yesterday + the united <unk> union agreed to negotiations that could lead to the flight attendants contributing concessions to a revived bid in exchange for an ownership stake + the pilot union the only one to support the buy-out thus far said the flight attendants ' decision <unk> our belief that an <unk> owned airline is practical and <unk> + still without the assurance of british airways ' financial backing it will be tougher for the buy-out group to convince <unk> banks to make loan commitments for a revised bid especially since british air 's original investment represented N N of the cash equity contribution for the bid + under the previous plan british air would have received a N N stake in ual in exchange for a $ N million equity investment with a N N stake going to ual employees and N N to ual management + british air officials said the airline 's chairman lord king was concerned about news reports indicating that british air might be willing to participate in a bid that included a lower purchase price and better investment terms for the british carrier + the previous reports were based on remarks by british air 's chief financial officer <unk> stevens who said any revised bid would have to include a lower purchase price to reflect the sharp drop in ual 's stock in the past week + ual stock dropped $ N yesterday to $ N on volume of N shares in composite trading on the new york stock exchange + ual declined to comment on british air 's statement + in an interview wednesday with dow jones professional investor report mr. stevens said we 're in no way committed to a deal going through at all + we 're not rushing into anything + we do n't want to be party to a second rejection + indeed british air seemed to be <unk> itself from the troubled transaction early in an effort to avoid any further embarrassment + the original transaction fell through on the same day british air shareholders approved the plan at a special meeting after the british succeeded in arranging the financing for its equity contribution + the carrier also seemed eager to place blame on its american counterparts + the buy-out consortium <unk> to exist because our american partners were not capable of organizing the financing a british air spokesman said + british airways may have begun to have second thoughts about the transaction after the transportation department forced northwest 's airlines ' new owners to restructure the equity contribution of <unk> royal dutch airlines in that carrier + most of the department 's statements since the northwest transaction indicated it planned to curtail foreign ownership stakes in u.s. carriers + even before british air 's announcement pilot union leaders had been meeting in chicago yesterday to consider their options + the leaders expressed support for trying to revive the bid following a briefing wednesday by the union 's advisers lazard <unk> & co. and paul weiss <unk> <unk> & garrison + they also unanimously <unk> mr. <unk> the union chairman who has led the pilots ' N 1\/2-year fight to take control of the airline + ual 's advisers have indicated previously that it may take a while to come forward with a revised plan since they want to have firm bank commitments before launching a new bid + they have maintained that banks remain interested in financing the transaction + the buy-out fell through after citicorp and chase manhattan corp. the lead banks in the transaction failed to obtain $ N billion in financing needed for the plan + italy 's industrial wholesale sales index rose N N in june from a year earlier the state statistical institute istat said + the june increase compared with a rise of N N in may from a year earlier + domestic wholesale sales rose N N from a year earlier while foreign sales jumped N N istat said + for the first six months wholesale sales rose N N from the year before reflecting to a N N jump in domestic sales and a N N boost in foreign sales + sales of capital goods to foreign and domestic <unk> increased N N in the <unk> period from a year earlier + sales of consumer goods rose N N in the same period while sales of intermediate goods were up N N from a year ago + senate democrats <unk> a cut in the capital-gains tax have decided under pressure from their leaders not to offer their own proposal placing another obstacle in the path of president bush 's legislative priority + a core group of six or so democratic senators has been working behind the scenes to develop a proposal to reduce the tax on the gain from the sale of assets + the plan was complete except for finishing <unk> and there was talk that it would be unveiled as early as yesterday + but senate majority leader george mitchell d. maine a vigorous opponent of the capital-gains tax cut called the group to meet with him wednesday night and again yesterday + sen. mitchell urged them to <unk> + afterward leaders of the dissident democrats <unk> and said they would n't offer their own proposal as they had planned + the decision is a setback for president bush who needs the support of democrats to pass the tax cut through the <unk> senate + having a proposal sponsored by democrats would have given the president an advantage + having only a republican measure makes the task harder + still sen. bob packwood r. ore. the lead sponsor of the republican capital-gains amendment predicted that the tax cut would be enacted this year + he said a clear majority of senators back the tax reduction and that ultimately there would be enough senators to overcome any procedural hurdle the democratic leadership might <unk> + but sen. mitchell buoyed by his victory among fellow democrats strongly disagreed + mr. mitchell has been predicting that the president 's initiative would fail this year + yesterday in an interview he added that the democrats ' decision increases the likelihood that a capital-gains tax cut will not pass this year + mr. mitchell 's first victory came last week when the senate passed a deficit-reduction bill that did n't contain a capital-gains provision + that vote made it unlikely that a capital-gains tax cut would be included in the final bill now being drafted by house and senate negotiators + the house version of the bill does include the tax cut + now republican leaders are concentrating on <unk> a capital-gains amendment to some other bill perhaps a measure raising the federal borrowing limit or a second tax bill that would follow on the heels of the deficit-reduction legislation + to help lay the <unk> for that fight president bush plans early next week to meet at the white house with some N democratic senators who favor cutting the capital-gains tax or are <unk> on the issue + the president apparently will have only one bill to push sen. packwood 's and at least some of the dissident democrats plan to support it + i may want to offer additional amendments to improve it when the bill comes to the floor said sen. david boren d. okla. a leader of those democrats + the packwood plan as expected would allow individuals to exclude from income N N of the gain from the sale of a capital asset held for more than one year + the exclusion would rise five percentage points for each year the asset was held until it reached a maximum of N N after seven years + the exclusion would apply to assets sold after oct. N + as an alternative taxpayers could chose to reduce their gains by an inflation index + for corporations the top tax rate on the sale of assets held for more than three years would be cut to N N from the current top rate of N N + that rate would gradually decline to as little as N N for corporate assets held for N years + the packwood plan also would include a proposal designed by sen. william roth r. del. that would create new tax benefits for individual retirement accounts + the roth plan would create a new <unk> ira from which money could be withdrawn tax-free not only for retirement but also for the purchase of a first home education expenses and medical expenses + current iras could be rolled over into the new iras but would be subject to tax though no penalty + westmoreland coal co. <unk> benefits of a sustained effort to cut costs and boost productivity reported sharply improved third-quarter results + the producer and marketer of <unk> coal said net income for the quarter was $ N million or N cents a share on revenue of $ N million + for the year-earlier period the company reported a loss of $ N or six cents a share + in the latest nine months the company earned $ N million or $ N a share + last year 's net loss of $ N included a benefit of $ N from an accounting change + revenue for the nine months rose to $ N million from $ N million + in an interview <unk> hutchinson president and chief executive cited several reasons for the improvement higher employee productivity and good natural conditions in the mines as well as lower costs for materials administrative overhead and debt interest + in the latest nine months mr. hutchinson said total coal sales rose to about N million tons from about N million tons a year earlier + in addition long-term debt has been trimmed to about $ N million from $ N million since jan. N + he predicted the debt ratio will improve further in coming quarters + westmoreland 's strategy is to retain and expand its core business of mining and selling <unk> coal in the <unk> region + the operating territory includes coal terminals on the ohio river and in newport news va + westmoreland exports about a fourth of its coal <unk> including a significant amount of <unk> coal produced by others that is used by steelmakers overseas + for the past couple of years westmoreland has undertaken an aggressive streamlining of all aspects of its business + marginal operations and assets have been sold + the size of the company 's board has been reduced to eight directors from N + about N <unk> management jobs and hundreds of hourly wage positions have been eliminated + even <unk> have been reduced + for example the chief executive himself now pays N N of the cost of his health benefits the company used to pay N N + i think the ship is now <unk> the <unk> are pumped and we are on course mr. hutchinson said of the restructuring program + much of what we set out to do is completed + but he cautioned that westmoreland 's third quarter is typically better than the fourth so investors should n't just <unk> the third quarter by four and assume the same rate of improvement can be sustained + one difference he said is that the fourth quarter has significantly fewer <unk> because of holidays and the hunting season + i do n't want to give the impression that everybody can relax now he said + we have to keep working at improving our core business to stay efficient + it 's a process that never really ends + nevertheless mr. hutchinson predicted that N would be <unk> profitable for westmoreland and that N would bring more of the same + for all of N the company reported an after-tax operating loss of $ N on revenue of $ N million + an accounting adjustment made net income $ N million or N cents a share + in a move that <unk> the company 's basic strategy its westmoreland energy inc. unit is developing four <unk> <unk> plants with a partner in virginia + some of the coal the plants buy will come from westmoreland mines + mr. hutchinson predicted that the unit 's contribution to company results in the 1990s will be exciting + he said westmoreland is looking at investment stakes in other <unk> plants east of the mississippi river + westmoreland expects energy demand to grow annually in the N N range in the early 1990s + we see coal 's piece of the action growing mr. hutchinson said + coal prices while not <unk> will grow modestly in real terms we think + chase manhattan corp. after trying unsuccessfully to sell its interest in its lower manhattan operations building has exercised its option to purchase the <unk> office tower + chase had purchased an option to buy the building at one new york plaza for an undisclosed sum from the late <unk> atlas as part of its original lease in N + the current transaction cost the bank approximately $ N million + of that amount $ N million was payment for the land <unk> the building and the rest was for the building itself + the building houses about N chase workers most of whom will be moved to downtown brooklyn after the bank 's new back office center is completed in N + the move is part of chase 's strategy to consolidate its back offices under one <unk> + the headquarters is located a few blocks away at N chase manhattan plaza + as part of its decision to leave the building chase tried to sell its interest along with the atlas estate 's interest shortly after the october N stock market crash + chase senior vice president george <unk> said the bank decided to exercise its option after bids fell short of expectations + he said chase and the atlas estate were looking to sell the entire building for $ N million to $ N million but did n't get an offer for more than $ N million + as the building 's new owner chase will have its work cut out for it + chase is <unk> N million square feet of space and salomon brothers inc. whose headquarters is in the building also plans to move shortly + in addition another major building <unk> thomson <unk> inc. 's thomson <unk> securities likely will <unk> the premises as part of its liquidation + new york real estate brokerage edward s. gordon co. will have the difficult task of finding new tenants + even with its striking views of the new york harbor the building is considered <unk> by modern office standards + and chase will have to spend approximately $ N million to remove asbestos from the premises + wall street shake hands with george <unk> + the author of the <unk> novel N invented a language called <unk> that made it impossible to fully develop a <unk> thought that is anything negative about the policies and practices of the state + wall street has n't gotten that far yet but it has made a promising start + its language call it <unk> is increasingly <unk> reassuring and designed to make financial products and <unk> appear better safer or cheaper than they really are + when something <unk> nasty happens a few <unk> are deployed to simply make it disappear much as a fresh grave may be covered by a blanket of flowers + for example we 'll bet you thought that the stock market <unk> two years ago + wrong + according to some of the grand <unk> of the market it never happened + in their <unk> the <unk> collapse in the dow jones industrial average on oct. N N was just a big <unk> + <unk> out a <unk> <unk> term new york stock exchange chairman john phelan recently declared that history would record the event as only a major technical correction + another <unk> saying however this one in plain english holds that if something walks like a duck and <unk> like a duck it is a duck + on oct. N N a date <unk> <unk> insist on <unk> with the <unk> <unk> the <unk> industrials fell N N + in the technical correction of two years ago they lost a <unk> N N + customers hear a lot of this stuff from people who try to sell them stock + these people used to be called brokers but apparently this word either is not <unk> enough or carries too many negative <unk> from the <unk> technical correction when <unk> customers could n't raise brokers on the phone + either way the word broker is clearly out of favor + of the major new york-based securities firms only morgan stanley & co. still calls its salespeople brokers + at merrill lynch & co. and shearson lehman hutton inc. they are financial consultants + at drexel burnham lambert inc. prudential <unk> securities and dean witter reynolds inc. they are account executives + at painewebber inc. they are investment executives + such titles are designed to convey a sense of <unk> <unk> <unk> and expertise in selling today 's <unk> financial products + it is a <unk> and expertise that some brokers themselves <unk> by all the new things being <unk> up for them to <unk> do n't feel + it s almost product de <unk> <unk> one account executive at dean witter + the <unk> brokers never let the <unk> cross their <unk> instead stressing such terms as safe insured and guaranteed even though these terms may be severely limited in their application to a particular new financial product + the names of some of these products do n't suggest the risk involved in buying them either + a case in point <unk> bond funds + what could <unk> more safety than investing in government bonds + what could be better than getting a <unk> more income from them the plus than other people + indeed conservative investors many of them elderly have poured more than $ N billion into such funds which promise <unk> yields than ordinary treasury bonds only to learn later that these funds use part of their money to <unk> in high-risk bond options a <unk> 's game + when a certain class of investment <unk> so poorly that its reputation is <unk> look for wall street to give it a new <unk> + this seems to be happening now to limited partnerships many of which either have gone into the tank in recent years or have otherwise been <unk> disappointments + they are still being sold but more and more often as direct investments with all the same risks they had under the old label + in such cases the game has n't changed only the name + in others a familiar old name still <unk> but the underlying game has changed + for example no load mutual funds remain a favorite with investors because they do n't carry a <unk> sales commission + getting out of them however may be a different story now + traditional <unk> made their money by charging an annual management fee usually a modest one they imposed no other fees and many still do n't + in recent years though a <unk> of others flying the <unk> flag have been imposing hefty charges all the way up to N N when an investor sells his shares + should n't they properly be called <unk> funds + the mutual-fund industry is <unk> the question but do n't expect a new name while the old one is working so well + and do n't expect anyone to change the term blue chip either even though some of the companies that still enjoy the title may be riskier investments than they were + american telephone & telegraph co. for one is still a favorite of <unk> <unk> and trust departments but <unk> of its regional telephone units and exposed to competition on every side it is a far different investment prospect than it was before divestiture + also blue chips in general have suffered much more short-term price volatility in recent years + larry <unk> a money manager in san mateo calif. blames that on the advent of program trading in which computers used by big institutional investors are <unk> to buy and sell big blocks when certain market conditions prevail + blue chips he says are now being referred to as <unk> chips + finally even the <unk> strategy called value investing no longer means what it once did + before the takeover mania of the '80s it referred to <unk> out through analysis undervalued stocks especially those with <unk> management sound fundamentals and decent prospects + now says mr. <unk> value investing often means looking for <unk> companies with terrible management that are in real trouble + to institutional investors or brokers he adds a company with value is a company at risk of being <unk> up + ms. <unk> covers personal finance from the wall street journal 's los angeles bureau + i was <unk> to read your recent news stories on the banking industry 's reserve additions and <unk> threats to cease making new loans to less-developed countries + if the whole story were told it would read something like this + during the 1970s the commercial banks <unk> the country loan business away from the bond markets where the discipline of a prospectus and use of proceeds confirmation allowed lenders to audit expenditures of old loans before new loans were made + the reward for that reckless lending was high reported earnings and management bonuses the price a sea of bad loans + for the past several years the banks lacking a private navy to enforce their interests have been <unk> the u.s. treasury to underwrite their bad <unk> credits + the treasury <unk> has refused but has concluded that indirect credit support through various multinational agencies should be made available for a price either debt reduction or <unk> reduction or new loans the brady plan + the banks will threaten not to make further loans but in truth lacking the capital to write off their mistakes or to build a navy they have no alternative but to go along + george a. <unk> + gillette co. elected warren e. buffett chairman of <unk> <unk> inc. to its board increasing the number of directors to N from N + <unk> <unk> earlier this year bought $ N million of preferred stock in gillette that is convertible into an N N stake and gillette said at the time that mr. buffett would be added to the board + separately gillette said its third-quarter earnings rose N N to $ N million or N cents a share from $ N million or N cents a share in the year-earlier period per-share earnings remained flat despite an increase in net income in part because the company paid a $ N million dividend on the new preferred stock in the period + sales rose N N to $ N million from $ N million with sales of the company 's <unk> operations well above the year <unk> + for the nine months gillette 's net income declined N N to $ N million or $ N a share from $ N million or $ N a share in the N period + sales rose N N to $ N billion from $ N billion + in composite trading on the new york stock exchange the company closed yesterday at $ N a share up N cents + when walter yetnikoff the president of sony corp. 's cbs records last month told producer peter guber that sony was about to make a $ N billion bid for columbia pictures and needed someone to run the studio mr. guber jumped at the chance + within two days he was on his way to new york and tokyo to meet with top <unk> at sony + and before the week was out sony had offered mr. guber and his partner jon peters the most lucrative employment contracts in the history of the movie business + not only that sony also agreed to give them a stake in columbia 's future profits and buy their company guber peters entertainment co. for $ N million almost N N more than the market value of the company + there was just one sticking point the two had a prior commitment + just seven months earlier they had signed a five-year exclusive contract to make movies for warner bros. for which they had just produced the <unk> hit batman + but mr. guber figured that warner communications inc. chairman steven ross would <unk> and let the producers go knowing the sony offer was the culmination of a life 's work + he figured wrong + last week following <unk> settlement talks warner now <unk> with time inc. filed a $ N billion breach of contract suit in los angeles superior court against both sony and guber peters + sony promptly <unk> charging warner with trying to sabotage its acquisitions and hurt its efforts to enter the u.s. movie business + the accusations of lying and <unk> are flying thick and fast on both sides as one sony executive puts it it 's world war iii + that two successful producers who are n't all that well known outside hollywood could occasion such a clash of corporate <unk> suggests how desperate the <unk> for proven talent is in the movie business + and they are a very odd team in any case + mr. guber was raised in boston and educated in new york + he is a lawyer with a string of academic degrees + mr. peters is a high-school <unk> who came to fame as <unk> <unk> 's <unk> + yet they are far and away the most <unk> producers in hollywood + and despite their share of <unk> they make movies that make money + that is a <unk> sony badly needs and warner is loath to lose + although columbia had a good summer with <unk> ii and when harry met <unk> rivals such as warner paramount pictures walt disney co. and universal studios have been <unk> columbia at the box office + after five years of management turmoil with four different studio heads columbia <unk> needs a stable <unk> team to restore its credibility and get it back in the business of making hits + mr. guber and mr. peters are n't <unk> loved in hollywood but they are well connected + their stock in trade as executive producers is <unk> out hot properties <unk> them up and then getting big studios to <unk> and distribute them + sometimes mr. guber and mr. peters do little more than grab the first draft of a <unk> for a <unk> or buy rights to a best seller such as the color <unk> + it falls to others to do the writing <unk> and producing + with mgm\/ua 's <unk> for instance messrs. guber and peters had virtually nothing to do with day-to-day production but their names still appear in big letters on the credits and they are inevitably associated with its success + sometimes as with batman the pair really do make the film + in that case guber peters acquired the rights in N <unk> the movie through a dozen scripts and were on the set in london for N months <unk> over the most minute changes in casting and production + they 're the best production talent around says brian de <unk> <unk> to guber peters for hiring him to direct the warner movie of tom <unk> 's novel <unk> of the <unk> + on that film which is to start shooting in a few months they 've been very much involved hiring talent and discussing the development of the script + and when you 're making a movie this big you need all the help you can get mr. de <unk> adds + i wish they were around N hours a day + and some movies seem to have been hurt by their <unk> + warner executives blame mr. guber 's and mr. peters 's lack of involvement in <unk> ii for casting and production problems and the film 's ultimate dismal failure + we 've had a few <unk> admits mr. peters + but by and large this company has only been profitable + he says his company 's <unk> at packaging and marketing is why we 'll be good at columbia + we practically ran our own studio + longtime hollywood associates describe mr. guber as the intellectual powerhouse of the two a man with a <unk> for <unk> and marketing + peter is a major piece of hollywood manpower who has really earned his success says robert <unk> an agent at creative artists agency + mark johnson the producer of <unk> <unk> in he has a great ability to hire <unk> people and delegate authority + it 's no accident that they 've been able to develop such successful material + mr. peters on the other hand has fewer fans in hollywood and his <unk> like to <unk> him as something of a <unk> <unk> + he gets better reviews as a creative <unk> an <unk> an idea man + he also had to fight harder for credibility than his partner did + <unk> <unk> made him famous + he cut her hair + he lived with her + he came to produce her records and her movies a star is born and the main event + <unk> married but now single mr. peters got plenty of ink last summer for an <unk> <unk> with actress kim <unk> during the making of batman + mr. guber by contrast has been married to one woman for more than N years + but for all their intellectual and <unk> differences they make the perfect good <unk> bad <unk> team hollywood associates say + peter is the bright sympathetic guy when you 're doing a deal says one agent + if there 's a problem peter disappears and all of a sudden jon shows up + mr. guber and mr. peters <unk> many people in hollywood the wrong way + producers don simpson and jerry <unk> who <unk> <unk> through several scripts and ultimately produced the movie <unk> when messrs. guber and peters take credit for the film + says mr. simpson the script was <unk> + we <unk> it + we are the producers of that movie + they got a small piece of the net profits and a screen credit as executive producers + when roger <unk> an executive who worked for guber peters in the early 1980s left to take a job as head of production at the united artists studio they made him <unk> all credits and financial interest in the films he had helped develop including <unk> and batman + mr. peters acknowledges that and says it 's not unlike the situation he and mr. guber are in with warner + i was upset with roger i <unk> and <unk> says mr. peters + but he wanted to pursue his own dream and he went + still mr. <unk> says his relationship with guber peters was one of the most successful i 've had in hollywood + the two have a wonderful chemistry jon is very <unk> and peter is very <unk> adds mr. <unk> who is now head of production at news corp. 's 20th century fox film co + jon peters will come <unk> into a room say he 's got a great idea and be gone + peter will take the <unk> of that idea and make it grow into something specific + mr. <unk> recalls that mr. guber and mr. peters shifted into high gear a few years back upon learning that they had competition for the story of the murdered <unk> <unk> <unk> which became <unk> in the <unk> + he says within a few weeks we made deals with the government of <unk> and everyone who had ever met or talked to <unk> <unk> + i think peter even made some deals with the <unk> + universal studios was working on a competing film but the studio and its producers ultimately agreed to <unk> the film with guber peters and warner + more recently guber peters beat out a dozen other producers reportedly including robert redford and ted turner for rights to the life story of <unk> <unk> the murdered brazilian union leader who fought developers in the <unk> rain forest + messrs. guber and peters <unk> <unk> the man 's widow for months showing her a tape of <unk> in the <unk> to <unk> her with the quality of their work + money helped too + ultimately they paid more than $ N million for the rights + the sale caused a <unk> between the widow and some of her husband 's <unk> + some of the money will go to the <unk> <unk> foundation but it is n't earmarked for groups trying to save the rain forest + it 's hardly <unk> given the men 's track record that sony wants mr. guber and mr. peters + but it is <unk> to some hollywood executives that sony rushed to hire them without clearing up the warner situation first + some note that sony might have saved itself some trouble by just hiring mr. guber and letting mr. peters stay on to fulfill the warner contract + but though people in town may ask why guber needs peters it 's good to have a partner and obviously the chemistry works says steven tisch a producer who once worked for mr. guber + this business is n't about <unk> at the end of the day it s about whether the ink is red or black + in the case of peter and jon the ink has been very very black + mr. guber got his start in the movie business at columbia two decades ago + recruited from new york university 's <unk> program he rose within two years to head of production overseeing such films as the way we were taxi driver <unk> and <unk> + in N he <unk> up with record producer neil bogart in <unk> records and <unk> later called <unk> pictures where they produced such hits as as the deep and midnight express + in N mr. guber got together with mr. peters by then a successful producer in his own right after the death of mr. bogart + while guber peters produced a number of hits for warner and others their record was n't always so impressive + among their <unk> were the <unk> of <unk> jean <unk> clue and <unk> of the <unk> bear + and the failures make it possible for warner in its current lawsuit to <unk> the producers as <unk> + the studio says it stuck with them even in the early years when the creative partnership was not particularly profitable for warner + mr. guber replies that this is a <unk> this time warner trying to <unk> up two <unk> who have done only well for them for a long period of time + mr. guber and mr. peters maintain that executives at warner have always known of their ambitions to run a major entertainment powerhouse but that warner never felt threatened until they linked up with sony + from the beginning they knew we had a goal and a dream says mr. guber + on a number of occasions he adds he tried to get warner to buy guber peters outright + they always <unk> but they never acted mr. guber says + in N mr. guber and mr. peters contributed their company 's assets in exchange for a N N stake in <unk> entertainment a <unk> tv production company controlled by giant industries inc. chairman burt sugarman + in july a year later warner agreed to release the producers from their old contract when messrs. guber peters and sugarman made a $ N million offer to buy N N of mgm\/ua + mr. guber and mr. peters planned to run the nearly <unk> mgm studio and the two even tried to interest warner <unk> president terry semel in becoming a partner after he advised them on the deal + but the mgm plan collapsed just two weeks later + mr. guber and mr. peters say they got a look at the books and balked at the price + their relationship with mr. sugarman <unk> shortly thereafter + last may he sold his N N stake in <unk> to a passive australian investor and <unk> was renamed guber peters entertainment co + meanwhile mr. guber and mr. peters had agreed to extend their warner agreement with the new five-year exclusive contract + the new deal was considered the most generous of its kind both financially and in terms of creative freedom + but it <unk> by comparison to what sony was to offer last month the chance at last to run a major studio about $ N million in deferred compensation up to N N of columbia 's future cash flow N N of the future appreciation of columbia 's market value and annual salaries of $ N million for each + the producers ' N N share of publicly held guber peters would net them an additional $ N million + sony also agreed to <unk> the producers against any liability to warner + sony is paying a hefty price for a company that had revenue of only $ N million last year + and earnings have been <unk> + in the the latest quarter thanks in part to batman guber peters earned $ N million or N cents a share compared to a loss of $ N million or N cents a share in last year 's quarter + guber peters stock which traded as low as $ N a share last year closed yesterday at $ N + the two sides now are <unk> each other of lying + mr. guber and mr. peters claim they have an oral agreement with warner executives that allows them to terminate their contract should the opportunity to run a major studio arise + but in affidavits filed yesterday in the los angeles court mr. ross warner bros. chairman robert daly and president semel deny that such an oral agreement was ever made + warner in its court filings calls it a piece of <unk> created for this litigation + mr. daly in his affidavit acknowledges that warner agreed to release the producers last year to take over mgm but says that situation was altogether different + for one thing according to mr. daly the producers requested a release in advance + moreover the old contract was about to expire and the lineup of guber peters pictures for warner was n't as strong as it is now + warner itself was in negotiations with mgm over certain movie and other rights and it was in warner 's interest to accommodate mgm\/ua guber and peters by permitting them to become mgm executives mr. daly said in his affidavit + warner obviously does n't think that it is in its own interests to let mr. guber and mr. peters go off to columbia + at the very least mr. ross clearly sees an opportunity to use the two men to get a pound of <unk> from sony + during settlement talks for example warner demanded such things as cable tv rights to columbia movies and columbia 's interest in the studio it jointly owns with warner according to executives involved in the talks + in any settlement warner is almost certain to demand rights to most of the N or so projects mr. guber and mr. peters have locked up for the next few years notably <unk> to batman + mr. guber and mr. peters refuse to concede that they may have made a tactical error in accepting the sony offer before taking it up with warner + and they say there are plenty of <unk> in hollywood for letting people out of contracts + the last time columbia pictures was looking for a studio chief they note warner released producer david <unk> from his contract then took him back after he was subsequently fired by his bosses at columbia + in his affidavit filed yesterday warner 's mr. ross indicated he is n't buying any such argument if sony succeeds here no written contract in hollywood will be worth the paper it 's written on + the sales pitch could n't sound better + first there 's the name asset-backed securities + better than all those offers you get to buy securities backed by nothing + and there 's more + the assets backing the securities come from some of the country 's biggest and most secure institutions + most earn high ratings from credit agencies + their yields are higher than those of u.s. treasury issues + and the booming market has already attracted many of the nation 's biggest institutional investors + ready to jump + well think twice + the concept may be simple take a bunch of loans tie them up in one neat package and sell pieces of the package to investors + but the <unk> may be misleading + skeptics say the slightly higher returns are n't enough to compensate for the extra risk + they warn that asset-backed securities are only as good as the assets and credit backing that support them and those are hard to evaluate + moreover the securities were introduced only about N N years ago the biggest unknown is how they will fare in a recession + a lot of this stuff really is in <unk> waters says owen <unk> director of the investment securities division of the u.s. comptroller of the currency + we do n't know how this whole market will work in a serious economic downturn + such concerns however have n't stopped asset-backed securities from becoming one of wall street 's hottest new products + since the spring of N financial <unk> have transformed a wide variety of debt into these new securities + they have sold issues backed by car loans boat loans and <unk> loans + they have offered <unk> of <unk> loans as well as packages of loans used to buy vacation <unk> + last year there was an issue of <unk> bonds securities backed by loans to life-insurance policyholders + some predict there will be third world bonds backed by loans to brazil argentina and other <unk> nations + and the biggest volume this year has been on securities backed by credit-card receivables sometimes known as plastic bonds + this is the <unk> of debt says james grant editor of grant 's interest rate <unk> a newsletter + before the sun sets on the '80s it seems nothing will be left <unk> + the result is a $ N billion market according to securities data co + that includes more than $ N billion issued through august of this year up sharply from $ N billion in the comparable N period and more than in all of N + most issues have been sold to professional money managers pension funds bank trust departments and other institutions + but wealthy individuals also have been jumping in and lately brokers have been pushing smaller investors into the asset-backed market + the entry fee is affordable issues typically are sold in minimum denominations of $ N + we expect additional offerings of asset-backed securities targeted toward individual investors says bill <unk> a senior vice president at shearson lehman hutton inc + the process typically begins when an institution such as citibank or sears roebuck & co. takes a pool of credit-card or other receivables and sells them to a specially created trust + the trust then issues securities generally due in five years or less that are underwritten by wall street brokerage firms and offered to investors + issues typically come with credit <unk> such as a bank letter of credit and thus have received high credit ratings + enthusiasts say the booming market has opened up a valuable new source of funds to issuers while providing a valuable new investment for individuals and institutions + asset-backed securities are an attractive investment compared to bank certificates of deposit or other corporate bonds says craig j. goldberg managing director and head of the asset-backed securities group at merrill lynch capital markets + but skeptics question whether asset-backed bonds offer sufficient rewards to compensate for the extra risks + consider a $ N million offering of N N securities issued last spring and backed by citibank credit-card receivables + the <unk> issue offered a yield of only about N percentage point above four-year treasury issues + on a $ N investment that 's a difference of only $ N a year + that kind of spread can be critical for money managers who buy bonds in large quantities and whose <unk> depends on <unk> the money manager across the street + but for individuals who buy much smaller amounts and care less about relative performance than in preserving what they have that margin is <unk> + if you 're in the bond business playing the <unk> <unk> then even an extra N basis points N percentage point becomes an important consideration on a career basis says mr. grant + but if you 're an individual investing money and trying to get it back again then that is n't of overwhelming importance + moreover the interest on asset-backed securities is fully taxable while interest on treasury issues is tax-free at the state and local level + that 's why some investment managers such as alex powers a vice president of chase manhattan bank 's private banking division do n't recommend most asset-backed issues for individuals in <unk> states such as new york or california + but mr. powers has purchased asset-backed issues for individuals with <unk> accounts such as retirement plans + he points out that institutions buying asset-backed issues in large quantities can earn higher spreads over treasurys than individuals buying smaller amounts + another concern is liquidity or how easily a security can be converted into cash + the secondary or resale market for asset-backed securities is relatively new and much less active than for treasury issues + that could make it tricky for investors who need to sell their holdings quickly before the securities mature + that 's particularly true analysts say for certain of the securities such as those backed by <unk> loans + you could see massive gyrations here because it 's such a <unk> traded market says jonathan s. paris a vice president of european investors inc. a new york <unk> firm + in addition an investor who wants to know the daily value of treasury bonds or corporate bonds traded on the new york stock exchange can simply check newspaper listings + there are n't any such listings for asset-backed securities + evaluating asset-backed securities <unk> another problem + investors for instance may mistakenly assume that the bank or company that originally held the assets is <unk> the securities + it is n't + the front cover of the prospectus for the citibank credit-card receivables offering points out in bold capital letters that the certificates represent an interest only in the specially created trust and do not represent interests in or obligations of the banks citibank <unk> citicorp or any affiliate <unk> + in other words if there 's a problem do n't expect citibank to come to the rescue + the prospectus also notes that the securities are not guaranteed by any government agency + that means investors have to focus on the quality of the debt that lies beneath the securities as well as on the credit <unk> for the issue and the credit ratings the issue has received + that also is n't easy + take the credit <unk> which typically include a bank letter of credit or insurance from a <unk> company + the letter of credit typically is not offered by the bank selling the assets to back the securities + nor does it cover the entire portfolio + details of credit <unk> vary widely from issue to issue + still they play a crucial role in winning top ratings for most asset-backed issues which in turn is why the yield above treasurys is so slim + but skeptics ask why you should bother buying this stuff when you can get only slightly lower yields on <unk> paper + when you buy an asset-backed issue you take the risk that a bank or an insurer could run into unexpected difficulties + if a bank 's credit rating was lowered because of say its loans to third world nations that could also affect the ratings liquidity and prices of the asset-backed issues that the bank supports + underwriters insist these issues are constructed to withstand extremely tough economic conditions + but despite the credit <unk> despite the high ratings some money managers still worry that a recession could <unk> havoc on the underlying assets + at a time when americans are leveraged to their <unk> asset-backed investors may be taking a <unk> gamble that consumers will be able to repay loans in hard times + at the very least a recession would prompt investors to buy the <unk> bonds they can find that is treasurys + that could widen the yield spread between treasurys and asset-backed securities as well as make it tougher to unload the latter + but it could be much worse + some analysts are especially wary of credit-card issues + for one thing credit-card loans are unsecured + in addition they fear that banks have been <unk> to issue cards to the public giving cards to too many big <unk> who will default during a recession + a day of <unk> is coming where we think the market will place a high premium on the <unk> debt issues and therefore we think the best debt investment is u.s. government bonds says craig <unk> of <unk> futures inc. an investment advisory firm + what about <unk> asset-backed issues + <unk> we still say to stick with treasurys mr. <unk> replies + ratings he notes are subject to change + all this makes asset-backed securities seem too risky for many people + and it <unk> raymond f. devoe jr. a market strategist at legg mason wood walker inc. of what he calls devoe 's <unk> but highly probable theory no. N + more money has been lost reaching for yield than in all the stock <unk> scams and <unk> of all time + mr. <unk> is a staff reporter in the wall street journal 's new york bureau + volume of asset-backed securities issued annually + \* principal amount + \*\* as of august N + \* principal amount + source securities data co + if you force financial planners to sum up their most important advice in a single sentence it would probably be a <unk> sentence diversify + judging by a poll of wall street journal readers conducted this summer by <unk> & morgan inc. serious investors have taken that advice to heart + nearly N investors responded to the journal 's poll providing an <unk> look at their portfolios + those portfolios are <unk> diversified + by spreading their wealth among several investment alternatives the respondents have protected themselves against <unk> in any one area be it stocks bonds or real estate + for example about N N of journal readers owned stock down slightly from N N in a similar poll last year + but only N N said they had more than half their money in the stock market + similarly N N of respondents own shares in a money-market mutual fund and N N own municipal bonds + but only N N to N N of the investors were committing more than half their funds to either of those alternatives + the poll conducted aug. N also provides a <unk> into the thinking of serious investors on a variety of other topics + it found them in a cautious but not <unk> mood + of N people sent a <unk> N replied + the response rate more than N N allows the results to be interpreted with a high degree of confidence + the results ca n't be <unk> to all investors though + journal readers are relatively affluent with a median household income of between $ N and $ N + nearly half of the respondents N N said their investment portfolio was worth $ N or more and N N said it was worth $ N million or more + the respondents were mildly optimistic about the economy and investment markets but their collective judgments were a <unk> more <unk> than they were a year ago + for example N N of this year 's respondents said they expect a recession within N months + last year only N N were expecting a recession + an additional N N of this year 's respondents expect the economy to slow down during the next N months + only N N of last year 's respondents anticipated slowing growth + apparently the respondents do n't think that an economic slowdown would harm the major investment markets very much + a slim majority N N think stock prices will be higher in august N than they were in august N + their verdict on real estate is almost the same + some N N expect real estate in their local area to increase in value over the next N months + by contrast only N N expect an increase in the price of gold + since gold tends to soar when inflation is high that finding suggests that people believe inflation remains under control + even though only N N actually predicted a recession many respondents were taking a <unk> sorry investment stance + nearly a third said they have made some portfolio changes to anticipate a possible recession + for the most part the changes were slight + the two-thirds who have n't tried to make their portfolios more <unk> were split about evenly between investors who do n't believe in trying to predict the markets about N N and investors who do n't expect a recession about N N or are <unk> if and when a recession might come about N N + a <unk> approach to stocks continues to be the rule among respondents + most own two to N stocks and buy or sell no more than three times a year + some N N had bought some stock in the past year only N N had sold any + but the <unk> shadow of N 's stock-market crash still seems dark + about N N considered another crash likely while about N N said one is unlikely + those <unk> hardly changed from the previous year 's poll + and the respondents ' commitment to the stock market remains somewhat lighter than usual + about N N of them said they would ordinarily have at least N N of their money in stocks + but as of august only N N actually had stock-market investments of that size + most stock-market indexes were hitting <unk> highs at around the time of the poll + but it appears that many journal readers were taking that news as a sign to be cautious rather than a signal to jump on the <unk> + mr. dorfman covers investing issues from the wall street journal 's new york bureau + canadian steel <unk> production totaled N metric tons in the week ended oct. N down N N from the preceding week 's total of N tons statistics canada a federal agency said + the week 's total was down N N from N tons a year earlier + a metric ton is equal to N pounds + the cumulative total in N was N tons up N N from N tons a year earlier + health care property investors inc. said it acquired three long-term care facilities and one <unk> facility in a <unk> transaction valued at $ N million + the real estate investment trust said that it leased the three florida facilities to national health care affiliates inc. of <unk> n.y + health care property holds an interest in N facilities in N states + moody 's investors service said it lowered its rating on about $ N million of this <unk> calif. concern 's convertible subordinated debentures due N to <unk> from <unk> + it said the reduction reflects <unk> business prospects and reduced financial flexibility caused by continuing losses at the maker of <unk> disk drives + valley national corp. + moody 's investors service inc. said it lowered its rating on about $ N million of this bank holding company 's senior debt to <unk> from <unk> + moody 's said it expects valley national of phoenix ariz. to make substantial further provisions against its real-estate portfolio and that it continues to suffer from the high cost of carrying nonperforming assets and from high loan-loss provisions + electronic theft by foreign and industrial <unk> and <unk> employees is costing u.s. companies billions and eroding their international competitive advantage + that was the message delivered by government and private security experts at an <unk> conference on corporate electronic <unk> + hostile and even friendly nations routinely steal information from u.s. companies and share it with their own companies said <unk> d. <unk> a former <unk> at the federal national security agency and now president of information security inc. silver spring md + it may well be that theft of business data is as serious a strategic threat to national security as it is a threat to the survival of <unk> u.s. firms said <unk> van <unk> the white house 's assistant director for national security affairs + the conference was jointly sponsored by the new york institute of technology school of management and the armed forces communications and electronics association a joint <unk> trade group + any secret can be <unk> the experts said if it is <unk> over the air + even rank <unk> can do it if they spend a few thousand dollars for a <unk> available microwave receiver with <unk> and a <unk> recorder + they need only position themselves near a company 's satellite <unk> and wait + you can have a dozen competitors stealing your secrets at the same time mr. <unk> said adding it 's a pretty good bet they wo n't get caught + the only way to catch an electronic thief he said is to set him up with <unk> information + even though electronic <unk> may cost u.s. firms billions of dollars a year most are n't yet taking <unk> the experts said + by contrast european firms will spend $ N million this year on electronic security and are expected to spend $ N billion by N + already many foreign firms especially banks have their own <unk> conference <unk> reported + still <unk> corporate communications is only a partial remedy + one expert whose job is so politically sensitive that he spoke on condition that he would n't be named or quoted said the expected influx of east european refugees over the next few years will greatly increase the chances of <unk> workers for example doubling as foreign <unk> + moreover he said technology now exists for stealing corporate secrets after they 've been erased from a computer 's memory + he said that oliver north of iran-contra <unk> thought he had erased his computer but that the information was later <unk> for congressional committees to read + no personal computer not even the one on a chief executive 's desk is safe this speaker noted + w. mark <unk> president of <unk> inc. a <unk> texas firm that makes <unk> products provided a new definition for mikhail gorbachev 's campaign for greater openness known commonly as glasnost + under mr. gorbachev mr. <unk> said the soviets are openly stealing western corporate communications + he cited the case of a swiss oil trader who recently put out bids via <unk> for an oil tanker to pick up a cargo of crude in the middle east + among the responses the swiss trader got was one from the soviet national shipping company which had n't been invited to submit a bid + the soviets ' <unk> paid off however because they got the contract + the university of toronto stepped deeper into the contest for connaught <unk> inc. by reaching an unusual agreement with ciba-geigy ltd. and chiron corp + the university said the two companies agreed to spend N million canadian dollars $ N million over N years on research at canadian universities if they are successful in acquiring the vaccine maker + it said $ N million would go to the university of toronto + ciba-geigy and chiron have made a joint bid of c$ N million for connaught and <unk> merieux s.a. of france has made a rival bid of c$ N million + the university is seeking an injunction against the merieux bid arguing that connaught 's predecessor company agreed in N that connaught 's ownership would n't be transferred to foreigners + the university implied that it would drop its opposition to foreign ownership if ciba-geigy and chiron are successful with their lower bid + it said the new agreement would replace the old one that forms the basis of its suit against the merieux takeover + notwithstanding foreign ownership of connaught this accord would enhance research and development in canada said james <unk> the university 's vice president of research + ciba-geigy is a swiss pharmaceutical company and chiron is based in <unk> calif + in a statement <unk> martin director general of merieux said the french company is still determined to acquire connaught + while he did n't comment directly on the pact between ciba-geigy and the university he said merieux can transfer new products and technologies to connaught more rapidly than other companies not currently producing and marketing <unk> who can only promise this for some years in the future + in national over-the-counter trading yesterday connaught closed at $ N up $ N + microsoft and other software stocks surged leading the nasdaq composite index of over-the-counter stocks to its biggest advance of the year on <unk> volume + leading the pack microsoft soared N N or N N to a record price of N N on N million shares + on the other hand valley national tumbled N N after reporting a sizable third-quarter loss + the nasdaq composite leaped N points or N N to N + its largest previous rise this year came aug. N when it gained N + the otc market 's largest stocks soared as well as the nasdaq N index jumped N or N N to N + the nasdaq financial index rose N or N N to N + by comparison the dow jones industrials and the new york stock exchange composite each rose N N + volume totaled N million shares N N above this year 's average daily turnover on nasdaq + among broader nasdaq industry groups the utility index gained N to N + the transportation and insurance sectors each posted gains of N with the <unk> finishing at N and the insurers at N + the nasdaq industrial index climbed N to N and the other finance index made up of commercial banks and real estate and brokerage firms rose N to N + the index of smaller banks improved N + of the N issues that changed hands N rose and N fell + <unk> mullins head of otc trading at dean witter reynolds said both institutional and retail investors were buying + but there was a <unk> of sellers traders said so buyers had to bid prices up to <unk> them + there 's no pressure on otc stocks at this point said mr. mullins who said some buyers are beginning to shop among smaller otc issues + microsoft 's surge followed a report this week of substantially improved earnings for its first quarter ended sept. N + the stock was trading at N just two weeks ago + rick <unk> a goldman sachs analyst has raised his earnings estimates for the company twice in the past two weeks citing improved margins + after the earnings were announced he raised his fiscal N estimate to between $ N and $ N a share + microsoft earned $ N a share in fiscal N + among other software issues <unk> jumped N N to N lotus development was unchanged at N N <unk> jumped N to N N <unk> gained N to N N and <unk> systems rose N to N N + <unk> a new software issue surged from its offering price of N to close at N N + the company also makes optical character recognition equipment + <unk> was underwritten by alex brown & sons + another recently offered alex brown issue rally 's surged N N to N + the operator of fast-food restaurants whose shares began trading last friday climbed N N to N on N shares + its N <unk> offering was priced at N + valley national 's slide of N N points to N N on N million shares followed its report late wednesday of a $ N million third-quarter loss + in the N quarter the phoenix ariz. commercial banking concern earned $ N million + valley national said its $ N million provision for credit losses and $ N million provision for other real estate owned is related to weakness in the arizona real estate market + additionally moody 's investors service said it downgraded valley national 's senior debt and confirmed the company 's commercial paper rating of not prime + a new issue <unk> surged N N from its initial offering price to close at N N + the offering was for about N million shares of the data storage equipment maker more than N million shares changed hands after trading began + dell computer dropped N to N + the company said earnings for the year ending jan. N N are expected to be N to N cents a share compared with a previous estimate of N to N cents a share + <unk> industries lost N N to N + raymond james & associates in st. <unk> fla. lowered its third-quarter earnings estimate for the company according to dow jones professional investor report + a.p. green industries advanced N N to N N + east rock partners which has indicated it might make a bid for the company said a.p. green a <unk> products maker told the partnership it is n't for sale + row N of section N of the upper reserved at candlestick park is a <unk> <unk> only a few steps from the very top of the stands + from my orange seat i looked over the <unk> line and the <unk> ball field in the warm sun of the last few minutes before what was to have been the third game of the world series + it was five in the afternoon but that was pacific time + back in new york the work day was already over so i did n't have to feel guilty + even still i did feel <unk> and i could n't help <unk> my father 's <unk> for a rich medical <unk> who would go to watch the <unk> on summer <unk> + this <unk> the stick was not a classic baseball stadium too <unk> too much <unk> concrete + and it did n't have the crowded wild <unk> of yankee stadium + but i liked the easy <unk> of the people around me liked it that they 'd brought their children found it <unk> that true citizens of the state of the future they had brought so many tvs and <unk> to stay in touch with <unk> at a live event + maybe it was their <unk> sense of history + the broadcasters were after all <unk> the game <unk> its <unk> for millions outside the stick + why not watch or hear your experience <unk> while you were living it + the day was <unk> with the weight of its own impending history + long lines of people waited to buy special <unk> world series <unk> with official <unk> + thousands of us had paid $ N for the official <unk> book with its historical <unk> on series <unk> its historical photographs of great moments in series past and its instructions in english and spanish for filling in the <unk> + <unk> <unk> <unk> + <unk> <unk> <unk> + players ran out on the field way below and the stands began to <unk> + it must be a local custom i thought <unk> feet to welcome the team + but then the noise turned into a <unk> + and no one was shouting + no one around me was saying anything + because we all were busy riding a wave + <unk> thousand <unk> <unk> a concrete wall waiting for the <unk> + only at the moment of maximum roll did i grasp what was going on + then i remembered the quake of <unk> which i experienced in santa barbara in a <unk> motel room + when the <unk> of the building <unk> me up i <unk> that a i was in southern california b the bed was moving c it must be a magic fingers bed that had <unk> + then i noticed the overhead light was <unk> on its <unk> and realized what had happened + what should i do + get out of the possibly <unk> building to the parking lot + but the lot might split into <unk> so i had better stand on my car which probably was wider than the average <unk> + fortunately the quake was over before i managed to run out and stand naked on the <unk> + at the stick while the world shook i thought of that morning and then it struck me that this time was different + if i survived i would have achieved every journalist 's highest wish + i was an <unk> of the most <unk> event on the planet at that moment + what was my <unk> + how would i file + all these thoughts <unk> through my head in the N seconds of the earthquake 's actual <unk> + the rest is of course history + the stick did n't fall + the real <unk> occurred elsewhere as we soon found out + but for a few minutes there relief <unk> + a young mother found her boy who had been out buying a <unk> + the wall behind me was slightly <unk> but the center had held + and most of us waited for a while for the game to start + then we began to file out to wait <unk> on <unk> <unk> for the opening pitch + it was during the quiet exodus down the <unk> concrete <unk> of the stick that i really understood the point of all those <unk> and <unk> + the crowd moved in <unk> <unk> <unk> around an electronic <unk> + in this way while the stick itself was <unk> out we kept up to date on events + within N minutes of the quake itself i was able to see pictures of the collapsed section of the bay bridge + increasingly accurate estimates of the <unk> of the quake became available before i got to my car + and by then expensive automobile sound systems were keeping the <unk> parking lot by the bay informed about the fire causing the big black <unk> of smoke we saw on the northern horizon + <unk> fell + but the <unk> continued through the <unk> night with pictures of the <unk> highway <unk> in oakland and <unk> in the marina district + by then our little sand village of cars had been linked with a global village of <unk> and viewers + everyone at the stick that day had started out as a <unk> and ended up as a participant + in fact the entire population of the bay area had ended up with this dual role of actor and audience + the reporters were victims and some of the victims turned into <unk> reporters + the outstanding example of this was the <unk> on the bay bridge who had the presence of mind to take out a video camera at the absolutely crucial moment and record the car in front as it fell into the gap in the roadway + the tape was on tv before the night was out + marshall <unk> you should have been there at that hour + investors who received shearson lehman hutton inc. 's latest stock commentary may be left with blank <unk> + the first N pages of the <unk> weekly portfolio perspective are completely blank except for the page numbers + rather than printing <unk> shearson puts all the blame on the <unk> stock market + the plunge made shearson 's market commentary instantly out of date + in fact last friday 's 190.58-point tumble in the stock market caught many people and businesses by surprise not the least of them brokerage firms such as shearson that print their weekly market <unk> on <unk> for <unk> the following week + shearson a <unk> unit of american express co. did n't have enough time to update its market commentary so we decided to kill our strategy pieces says jack <unk> the head of shearson 's research department + the first thought some investors had was that a <unk> shearson must have been wildly bullish on stocks in its original commentary and that 's why it <unk> its pages + investors recalled that shearson last week had been advising that the market is still <unk> all the signs of a further advance + many other brokerage firms had similarly bullish views + but mr. <unk> insists that the N pages were n't pulled because they were too bullish + instead he says they were cautious and that was n't the message we wanted to deliver on monday + as mr. <unk> explains it we were raising some caution flags about rate rises in europe and concerns about the lbo market + and by late friday afternoon actually after the close we decided that was the wrong tone to take + with the market down we wanted to tell people to put their orders in on the opening + both before and after the friday plunge shearson has maintained a recommended portfolio <unk> of N N stocks N N bonds and N N cash + <unk> b. <unk> chairman of <unk> & co. and john l. murray chairman of universal foods corp. were elected to the board of this engine maker + they succeed robert w. <unk> and john r. parker who reached the mandatory retirement age + china 's slide toward recession is beginning to look like a free fall + in a report on china 's <unk> economy the official state statistical bureau disclosed that industrial output last month rose N N from a year earlier the lowest growth rate in a decade for september + retail sales are <unk> while consumer prices still are rising + chinese and foreign economists now predict prolonged <unk> low growth and high inflation + the economy is <unk> hard says an asian economist in beijing + the slowdown is taking hold a lot more quickly and <unk> than anyone had expected + a lengthy recession if it <unk> would drain state <unk> and create severe <unk> for urban workers + experts predict the coming year will be characterized by flat or negative industrial growth rising unemployment and a widening budget deficit + unless the government suddenly <unk> course wages for most workers wo n't keep pace with inflation creating a potential source of urban unrest + the economy 's slowdown is due only partly to the <unk> program launched in september N to cool an <unk> economy and <unk> inflation + industrial output surged N N in N while inflation peaked last february at nearly N N + the slowdown also results from <unk> energy and <unk> shortages that force many factories to restrict operations to two or three days a week + in western <unk> countries recessions often have a bright side <unk> the economy to greater efficiency + in china however there is n't likely to be any silver <unk> because the economy remains <unk> primarily by the state + instead china is likely to shell out <unk> subsidies to its <unk> <unk> enterprises which <unk> up $ N billion in <unk> last year + nor are any of these inefficient <unk> likely to be allowed to go bankrupt + rather the brunt of the slowdown will be felt in the fast-growing private and <unk> township enterprises which have fallen into <unk> as china 's leaders <unk> an orthodox marxist preference for public ownership + when the going gets rough china <unk> the efficient and rewards the incompetent says a western economist + reports of an economy near recession come as officials prepare a major communist party <unk> for sometime in the next few weeks + the meeting is expected to call for heightened <unk> for two years + but with industrial growth <unk> and inflation showing signs of easing some voices may call for measures to pump new life into the economy + some analysts believe china soon will begin <unk> economic controls particularly by <unk> credit + that would benefit chinese enterprises as well as <unk> joint ventures both of which have been plagued by shortages of working capital + a dangerous buildup this year of billions of dollars in <unk> debts threatens if <unk> to bring the economy to a collapse + one sign of a possible easing of credit policy was the decision this week of people 's bank of china the central bank to <unk> $ N billion in short-term loans to pay farmers for the autumn harvest the official china daily reported + but while pumping more money into the economy would bring relief to many industries it also runs the risk of triggering another period of runaway growth and steep inflation + the cycle has been repeated several times since china began <unk> its planned economy in N + and because china 's leaders have abandoned plans to drastically reform the economy it is likely to continue analysts say + the statistical bureau 's report cited in china daily notes that industrial output in september totaled $ N billion a rise of just N N from a year earlier + output declined in several provinces including <unk> and <unk> two key coastal areas and <unk> the nation 's agricultural <unk> + production in shanghai china 's industrial powerhouse and the largest source of tax revenue for the central government fell N N for the month + nationwide output of light industrial products declined N N the first decline in N years a bureau spokesman told china daily + in an unusually direct statement the bureau spokesman recommended that state banks extend more credit to <unk> so that they can purchase manufacturers ' goods + this will prevent a slide in industrial production which will otherwise cause new panic <unk> the spokesman said + the N tax overhaul the biggest achievement of president reagan 's second term is beginning to fall apart and interest groups are <unk> up for tax <unk> all over capitol hill + real-estate executives are lobbying to ease <unk> rules + charitable groups are trying to <unk> the write-off for contributions made by individuals who do n't <unk> their deductions + big auction houses want to make <unk> eligible for lower capital-gains taxes + and <unk> lobbyists are quietly discussing the possibility of <unk> the investment tax credit + everything is up for <unk> says <unk> <unk> a lobbyist for mutual life-insurance companies + adds robert <unk> the head lobbyist for a variety of interests that want to protect the tax deduction for travel and entertainment expenses it appears as though the whole thing is wide open again + the catalyst has been the congressional move to restore <unk> tax treatment for capital gains an effort that is likely to succeed in this congress + other fundamental reforms of the N act have been threatened as well + the house seriously considered raising the top tax rate paid by individuals with the highest incomes + the senate finance committee voted to expand the deduction for individual retirement accounts and also to bring back income averaging for farmers a tax preference that allows income to be spread out over several years + as part of the same bill the finance panel also voted in favor of billions of dollars in narrow tax breaks for individuals and corporations in what committee member sen. david <unk> d. ark calls a feeding frenzy of special-interest <unk> + the beneficiaries would range from <unk> growers to rich <unk> to <unk> shops + to be sure the full senate facing a <unk> budget deadline last friday stripped away all of the tax breaks that were contained in the finance committee bill + but lawmakers of both parties agree that the streamlining was temporary + other bills will be moving soon that are expected to carry many of the tax cuts including both the capital-gains and ira provisions + there is n't any doubt that the <unk> of the <unk> code has been given a mighty <unk> says rep. thomas downey d. n.y + you 'll see the annual <unk> of it + it 's back to <unk> time for the select few says rep. william gray of pennsylvania the <unk> democrat in the house + referring to the chairmen of the senate and house <unk> committees he adds next year every special-interest group is going to be there knocking on lloyd <unk> 's door on danny <unk> 's door + many groups are n't waiting that long + just last week a house ways and means subcommittee held a lengthy meeting to hear the <unk> of individual cities companies and interest groups who want to open their own special <unk> + it 's a <unk> factory and the <unk> <unk> pretty good <unk> one veteran lobbyist who was watching the proceedings + even lobbyists for heavy industry one of the interests hit hardest in the N bill are encouraged + the return of <unk> tax breaks such as those for capital gains and iras creates more of a mood or a <unk> that is helpful for getting better depreciation write-offs or investment credits says paul <unk> a vice president for the national association of manufacturers + corporate lobbyist <unk> walker is planning a spring conference to discuss what tax changes to make to improve competitiveness + in reaction to proposed capital-gains legislation groups are lobbying to make sure they are n't left off the <unk> train + real-estate interests for example are <unk> an <unk> in president bush 's capital-gains proposal it does n't include real-estate gains + if there is going to be a tax scheme that <unk> lower treatment of capital gains they certainly want to be part of it says real-estate lobbyist wayne <unk> of concord associates + in the house-passed tax bill mr. <unk> got his wish real-estate assets are included in the capital-gains provision + but sotheby 's christie 's and the national association of <unk> dealers are still trying to get theirs + they have sent a letter to congressional <unk> asking that gains from the sale of <unk> also be given <unk> treatment + <unk> should continue to be recognized as capital assets the letter states + all of this talk is <unk> to the tax reform act of N + in exchange for dramatically lower tax rates the <unk> of that legislation sought to eliminate most of the <unk> deductions and credits that gave some taxpayers an advantage over others + the goal was to tax people with roughly equivalent incomes equally and to eliminate the many shelters that allowed the wealthy to escape taxes + two of the major ways that <unk> managed to <unk> these ends were to scrap the <unk> treatment of capital gains and to curtail the use of paper losses also known as passive losses that made many tax shelters possible + many other tax benefits also were <unk> away + this year congress with <unk> from president bush has been busy trying to put many of these same tax preferences back into the code + it appears likely that this year or next some form of capital-gains preference and <unk> restoration will be enacted + other tax benefits probably will be restored and created + the main obstacle is finding a way to pay for them + the <unk> act was a <unk> + they wanted reform and they got a revolution says overhaul advocate rep. <unk> <unk> r. ohio + so is the tax code now open game again + mr. <unk> thinks so + one recent saturday morning he stayed inside the capitol monitoring <unk> talks instead of flying to san francisco for a <unk> and then to his <unk> of chicago for the <unk> <unk> of st. <unk> high school + i 'm too old to waste a weekend but that 's what i did the <unk> mr. <unk> <unk> + these days anything can happen + lufthansa ag said passenger volume climbed N N for the first nine months of N to N million passengers from N million passengers in the year-earlier period + the west german national air carrier said cargo volume jumped N N to N metric tons from N tons a year ago + load factor or percentage of seats filled climbed to N N from N N even though the number of flights rose N N to N in the <unk> quarters + from january through september the distance <unk> by lufthansa airplanes rose N N to N million <unk> from a year earlier the company added + raymond chandler in a N letter defending a weak <unk> book <unk> a champion writer to a baseball <unk> + when the <unk> has lost his stuff the great mystery novelist wrote when he can no longer throw the high hard one he throws his heart instead + he throws something + he does n't just walk off the <unk> and <unk> + chandler might have been predicting the course of his own career + his last published novel featuring private <unk> philip marlowe the <unk> <unk> N at times read almost like a <unk> of his previous work + when he died in N chandler left behind four <unk> of yet another marlowe book the <unk> springs story which seemed to go beyond <unk> into something like <unk> + <unk> chandler 's last pitch apparently was a <unk> + now robert parker author of several best sellers featuring <unk> a contemporary private eye in the marlowe <unk> has with the <unk> of the chandler estate been hired to complete the <unk> springs story + the result <unk> springs <unk> 's N pages $ N is an entertaining easy to read and fairly <unk> extension of the marlowe <unk> full of <unk> <unk> and california color + if it does not quite have chandler 's special magic well at the end neither did chandler + as the book begins a newly <unk> marlowe <unk> into the desert resort of <unk> <unk> palm springs at the <unk> of a cadillac <unk> + his <unk> is the rich and beautiful linda <unk> a character who also appeared in chandler 's the long <unk> and <unk> + philip and linda move into her mansion and ca n't keep their hands off each other even in front of the <unk> <unk> + but the <unk> have a conflict + he wants to continue being a <unk> private eye and she wants him to live off the million dollars she 's settled on him + that 's chandler 's <unk> + mr. parker <unk> it into a pretty satisfying tale involving <unk> springs high life hollywood low life and various folk who hang their hats in both <unk> + the supporting lineup is solid the <unk> is amusing and there 's even a <unk> by <unk> <unk> the good <unk> of previous chandler books who still does n't hesitate to have marlowe jailed when it suits his purposes + the style throughout bears a strong <unk> to chandler 's <unk> at its most <unk> down + all told mr. parker does a better job of making a novel out of this abandoned <unk> than anyone might have had a right to expect + but there are grounds for complaint + at one point the reader is two steps ahead of marlowe in catching on to a double identity <unk> and marlowe is supposed to be the pro + more <unk> there are several apparent <unk> + contact lenses tank tops <unk> openly working the streets of hollywood and the <unk> <unk> <unk> all seem out of place in the 1950s + a little more care in <unk> marlowe 's universe would have made the book that much more <unk> + mr. <unk> is a contributing editor at los angeles magazine + <unk> <unk> spent eight years as the editor in chief of the japanese edition of reader 's digest + japan has been a major importer of foreign information and news says mr. <unk> + but one gets fed up with importing information and news + mr. <unk> has turned the tables + today he is publisher of business tokyo magazine the first <unk> business magazine devoted to coverage of japanese business + after a <unk> <unk> the <unk> magazine has been <unk> this month by its parent company <unk> corp. the tokyo-based company with interests that include financial services book publishing and a tourist agency + printed in the u.s. and carrying the line the insider 's japan business tokyo 's october cover story was the world 's no. N customer japanese women + <unk> is one of a small but growing band of japanese companies taking their first steps into american publishing after making major investments in entertainment real estate and banking companies here + japanese concerns have retained a number of publishing consultants and media brokers to study the u.s. market including the new york-based investment banker <unk> <unk> & associates + and they are quietly linking up with u.s. publishing trade groups + japanese publishers want to be introduced to the publishing and information industries said john <unk> chairman of <unk> <unk> + while there are n't any major deals in the works currently on the scale of sony corp. 's recent $ N billion agreement to buy columbia pictures entertainment inc. observers do n't rule out a transaction of that size + the japanese take the long view said mr. <unk> + it may not be weeks or months but they are also <unk> and if they feel comfortable they will move on a deal he said + in recent months three big tokyo-based publishing concerns including nikkei business publications nikkei home no <unk> and magazine house applied for membership in magazine publishers of america which represents almost all u.s. consumer magazines + japanese involvement in american publishing has been so small to date that magazines such as business tokyo are considered <unk> + when <unk> launched business tokyo in N it appealed to a more multinational audience + the magazine was <unk> with the aid of american magazine design <unk> milton <unk> and walter bernard and targets <unk> u.s. executives with japanese and american advertisers + american publishers appear more than ready to do some selling + <unk> <unk> president of <unk> <unk> <unk> america inc. publisher of the japan economic journal said he receives telephone calls weekly from media bankers on whether his parent company is interested in buying a u.s. consumer or business magazine + the japanese are in the early stage right now said thomas <unk> a <unk> media adviser for first boston corp. who was recently appointed president of reader 's digest association 's new magazine publishing group + before they were interested in hard assets and they saw magazines as soft + now they realize magazines are as much a franchise as nabisco is a franchise + bell atlantic corp. and southern new england telecommunications posted strong profit gains for the third quarter while nynex corp. pacific telesis group and u s west inc. reported earnings declines for the period + rate settlements in minnesota and colorado depressed u s west 's third-quarter profit + <unk> u s west said net income dropped N N noting that the year-ago quarter included the sale of a building by its <unk> properties unit + revenue dropped N N to $ N billion from $ N billion reflecting declines in its <unk> sector long-distance carrier business and diversified division + revenue from <unk> operations grew N N to $ N million from $ N million a year ago + new telephone lines posted healthy growth + overall they increased N N to N million putting u s west over the N million mark for the first time + business lines increased N N to N million + on a truly comparable basis we 've seen modest earnings growth this year from the operations of our company said jack <unk> chairman and chief executive officer + the major negative factor was the cumulative impact of regulatory activity over the past two years + he said the company expects to be on target with analysts ' projections by year end but conceded that the fourth quarter represents a significant challenge + expenses in the quarter dropped N N to $ N million from $ N million a year ago + yesterday u s west shares rose N cents to close at $ N in new york stock exchange composite trading + <unk> bell atlantic said net rose N N aided by strong growth in the <unk> business and an increase in the number of new telephone lines + revenue jumped N N to $ N billion from $ N billion in the year-ago quarter + revenue from financial and real-estate services jumped N N to $ N million from $ N million a year ago + <unk> revenue from long-distance telephone companies increased N N to $ N million + bell atlantic added N new telephone lines in the quarter for a total of N million + the company said per-share earnings were slightly reduced by the sale of N million shares of treasury stock to the company 's newly formed employee stock ownership plans + in composite trading on the big board bell atlantic closed at $ N up $ N a share + at nynex net slumped N N primarily because of a continuing strike by N employees lower-than-expected profit at its new york telephone unit and significantly higher taxes and costs + state and local taxes increased to $ N million from $ N million a year ago + nynex said expenses rose N N to $ N billion from $ N billion a $ N million increase + most of the higher costs were associated with acquisitions and growth in <unk> business units it added + our net income is n't where we would want it to be at this point said william c. ferguson chairman and chief executive officer + this deviation from our past growth patterns is caused largely by lower earnings at new york telephone + mr. ferguson said a continued softness in new york city area 's economy and increased competition particularly in the <unk> market took a heavy toll on earnings + the <unk> strike at nynex seriously hurt the installation of new telephone lines in the quarter + nynex said access lines in service at the end of the quarter were off N from the previous quarter which reported an increase of N new access lines + revenue rose to $ N billion from $ N billion mostly from acquisition of <unk> computers and robust <unk> businesses + in big board composite trading yesterday nynex common closed at $ N up $ N + southern new england telecommunications which bolstered its marketing efforts for telephone and <unk> subsidiaries reported that net increased N N + walter h. <unk> jr. <unk> chairman and chief executive officer said innovative marketing of our products and services contributed to increase revenue + revenue and sales increased N N to $ N million from $ N million a year earlier + yellow pages advertising sales rose N N to $ N million + cost and expenses for the quarter excluding interest increased N N to $ N million from $ N million the year before + <unk> common rose $ N to $ N a share yesterday in composite trading on the big board + san <unk> pacific telesis said net declined N N primarily because of regulatory action + revenue was about flat at $ N billion + revenue was reduced $ N million by three extraordinary items a california public utilities commission refund for an american telephone & telegraph co. billing adjustment a provision for productivity sharing to be paid to customers in N and a one-time <unk> for a toll settlement with long-distance telephone companies + excluding the one-time charges the company would have posted earnings of $ N million or N cents a share + the company also was hurt by a $ N million rate reduction that went into effect in N + this is a good quarter for us in terms of our business fundamentals said sam <unk> chairman and chief executive officer + pacific telesis said new telephone lines increased N N for a total of about $ N million for the quarter toll calls increased N N to N million and minutes of telephone usage increased to N billion + in big board composite trading yesterday pacific telesis common closed at $ N up N cents + a includes a one-time gain of $ N million from a <unk> sale by u s west 's u s west new <unk> group + b includes a $ N million gain on the sale of <unk> + amoco corp. said third-quarter net income plunged N N to $ N million or N cents a share as gasoline refining and marketing profits lagged substantially behind last year 's record level + a charge of $ N million related to projected environmental costs in its refining and marketing operations further depressed results + a spokesman said amoco completed an environmental analysis last quarter but that no single <unk> project was responsible + in the N third quarter the chicago-based oil company earned $ N million or $ N a share + revenue in the latest quarter rose N N to $ N billion from $ N billion + aside from the special charge amoco 's results were in line with wall street estimates + the company 's stock ended at $ N up N cents in new york stock exchange composite trading + amoco is the first major oil company to report third-quarter results + analysts expect others to show a similar pattern + generally in the quarter <unk> of gasoline and higher crude oil prices pressured profitability + the industry 's chemical profits also declined because excess capacity has depressed prices + gasoline margins may rebound this quarter some industry officials say but they believe chemical margins could worsen + american <unk> inc. a dallas-based integrated oil company yesterday said its third-quarter earnings declined by more than half + <unk> blamed lower chemical prices reduced gasoline margins and refinery maintenance <unk> + it said net income dropped to $ N million or N cents a share from $ N million or $ N a share + sales rose N N to $ N million from $ N million + amoco 's refining and marketing profit in the quarter fell to $ N million from $ N million + chemical earnings declined by one-third to $ N million last year 's robust levels + amoco 's domestic oil and natural gas operations recorded a profit of $ N million in the quarter compared with a loss of $ N million primarily on the strength of higher crude oil prices said chairman richard m. <unk> + amoco also sharply boosted natural-gas output part of it from properties acquired from tenneco inc. last year + but foreign exploration and production earnings fell sharply to $ N million from $ N million + higher oil prices were n't enough to offset a roughly $ N million charge related to a N N reduction in amoco 's canadian work force as well as increased exploration expenses + for the nine months amoco said that net income fell to $ N billion from $ N billion but if unusual items are excluded operations produced essentially flat results + revenue rose N N to $ N billion from $ N billion + james f. <unk> former chairman and chief executive officer of <unk> inc. and richard j. <unk> iii a dallas investment banker were elected directors of this <unk> concern boosting the board to seven members + for retailers christmas not halloween promises to be this year 's <unk> season + many retailers fear a price war will <unk> if <unk> companies such as campeau corp. slash <unk> to spur sales + concerns about the stock market doubts about the economy in general and rising competition from catalog companies also <unk> store operators + profits at christmas could be under attack for every retailer asserts norman abramson president and chief operating officer of <unk> inc. an <unk> chain + even if there is n't any widespread discounting the outlook for industry profits is n't good + management <unk> forecasts a N N profit decline for <unk> retailers this year after annual drops that averaged N N in N and N + for the last two and a half years retailing has been in a mild recession says carl <unk> chief economist at the columbus ohio consulting firm + this year many stores are entering the christmas season in turmoil <unk> teller and b. altman parent l.j. hooker corp. is operating under chapter N of the federal bankruptcy code b.a.t industries plc 's healthy saks fifth avenue and marshall field 's chains are on the auction block campeau 's bloomingdale 's is also on the block + industry observers expect a wide divergence in performance + stores in a state of confusion are likely to fare poorly and to lose customers to stable chains such as limited inc. may department stores co. and <unk> department stores inc. which should do well + there are going to be very clear winners and very clear losers says cynthia <unk> a <unk> ross & co. retail consultant + says mr. <unk> i 'm looking for a <unk> christmas + economists expect general merchandise sales in the fourth quarter to rise N N to N N from year-ago figures + but mr. <unk> predicts that healthy stores <unk> mostly apparel could ring up gains of as much as N N to N N + troubled chains could see their sales drop as much as N N he believes as managers <unk> by fears about the future allow their stores to get sloppy + thin merchandise <unk> at the most troubled chains are also expected to hurt sales + catalog companies are likely to pose a bigger threat to all stores this year particularly in december + more than N catalog <unk> are promoting a low-cost federal express service that guarantees <unk> delivery of orders made by a certain date + traditionally consumers were concerned about ordering after the first of december because they did n't believe they would get it by christmas says <unk> <unk> chairman of the wine <unk> inc. which sells wine <unk> and accessories through the mail + using federal express delivery last year mr. <unk> says december was our biggest month + even sears roebuck & co. is getting into the act offering for the first time to have federal express deliver toys ordered by dec. N from its wish book catalog + k mart corp. chairman joseph e. <unk> <unk> up his outlook for the christmas season as not troublesome + he 's not predicting a blockbuster but he is more optimistic than three months ago because employment remains strong and inflation low + other retailers are also preparing for a <unk> holiday + philip m. <unk> chairman of carter <unk> <unk> stores inc. expects sales at department stores open at least a year to rise a modest N N to N N over last year 's totals both for his company and the industry in general + i 'm not looking for a runaway christmas at all he says + it is n't a real boom holiday season in our eyes says woolworth corp. chairman harold e. sells but it is n't going to be a <unk> either + mr. sells expects fourth-quarter sales at his company which besides woolworth stores includes <unk> and foot <unk> <unk> stores and other specialty chains to rise pretty much in line with its <unk> increases of between N N and N N + the estimate includes the results of new stores + a consumer poll conducted in early september by leo j. shapiro & associates a market researcher based in chicago also suggests a modest holiday + of the N survey respondents N N said they expect to spend less buying christmas gifts this year than last year while N N said they expect to spend more and N N said their gift budget would stay the same + the results are almost identical to shapiro 's september N numbers + retailers could get a boost this year from the calendar + christmas falls on a monday creating a big last-minute weekend opportunity for stores + most will stay open late saturday night and open their doors again sunday + but many consumers probably will use the extra time to put off some purchasing until the last minute + what you 'll hear as we get into december is that sales are sluggish predicts woolworth 's mr. sells + the week ending the <unk> is going to save the entire month for everyone + the spanish author <unk> jose cela won the nobel prize for literature yesterday a surprising choice but given the swedish academy 's past <unk> hardly the most <unk> and ridiculous <unk> handed out by the <unk> committee + in spain anyway the <unk> mr. cela enjoys some <unk> for the novels and travel books he wrote during the <unk> franco years the everyday poverty and <unk> atmosphere of which he described in <unk> direct vivid <unk> beginning with the family of <unk> <unk> N + unlike other writers who either battled the <unk> during the civil war or left spain when franco <unk> mr. cela fought briefly on the general 's side no doubt earning with his war wound some <unk> when he went on to <unk> a country with a high population of <unk> <unk> and rural <unk> <unk> <unk> through a <unk> land + still it was in <unk> editions that his <unk> first read his story of <unk> <unk> a field worker who <unk> his mother to death and has no regrets as he <unk> his end in a prison cell fate directs some men down the <unk> path and others down the road <unk> with <unk> and <unk> <unk> + the lucky ones <unk> out at life with <unk> eyes and <unk> with a face of <unk> at their <unk> <unk> + the others endure the hot sun of the plains and <unk> like <unk> wild <unk> + mr. cela himself was one of the lucky ones his fortunes steadily increasing over the decades he spent putting out some N <unk> novels short story <unk> and <unk> + these days he is as known for his flamboyant <unk> and the <unk> <unk> who shares his life as he is for his books + the man who wore out his shoes <unk> around <unk> in N describing in his travel book <unk> a la <unk> how he <unk> for food and stayed in <unk> <unk> now tours spain in a <unk> + of his N novels the <unk> N full of sharp <unk> of madrid life and centered on a <unk> run by <unk> <unk> a <unk> broad-based woman with <unk> little teeth <unk> in <unk> used to be available in english translated by <unk> cohen and published by <unk> press which now no doubt regrets <unk> its copyright + here is an <unk> + the <unk> woman walks on in the direction of the plaza de <unk> <unk> + two men have a conversation behind one of the windows of the <unk> on the corner of the <unk> + both are young one <unk> odd the other <unk> odd + the older one looks like a member of the jury for a literary award the younger one looks like a novelist + it is evident that their conversation runs more or less on the following lines i 've submitted the <unk> of my novel under the title <unk> de <unk> and in it i 've treated a few neglected aspects of that <unk> problem which + oh yes + will you pour me a drop of water if you do n't mind + with pleasure + i 've revised it several times and i think i may say with pride that there is not a single <unk> word in the whole text + how interesting + i think so + i do n't know the quality of the works my colleagues have sent in but in any case i feel confident that good sense and honest judgment + rest assured we proceed with <unk> fairness + i do n't doubt it for a moment + it does not matter if one is defeated provided the work that gets the award has <unk> <unk> + what 's so discouraging is + in passing the window <unk> <unk> gives them a <unk> simply out of habit + ashland oil inc. said it will take after-tax charges of $ N million or $ N a share in its fiscal fourth quarter ended sept. N + because of the charge ashland expects to report a loss for the fourth quarter and significantly lower results for fiscal N + the oil <unk> said it will report fiscal fourth quarter and N results next week + the company earned $ N million or $ N a share on revenue of $ N billion in the year-ago fourth quarter + for fiscal N ashland had net of $ N million or $ N a share on revenue of $ N billion + both revenue figures exclude <unk> taxes + the charges consist of a $ N million after-tax charge to cover cost overruns in ashland 's <unk> consolidated subsidiary a previously announced $ N million after-tax charge resulting from a $ N million settlement with national iranian oil co. and a $ N million after-tax charge from the previously announced sale of its ashland technology corp. subsidiary + ashland expects that sale to be complete next year + the charge for the <unk> subsidiary is for expected costs to correct problems with certain bed <unk> built for utilities + the charge will be added to $ N million in reserves established a year ago to cover the cost overruns + when president bush <unk> here next week for a <unk> summit organized to <unk> a century of costa rican democracy will he be able to deliver a credible message in the wake of the panamanian <unk> + undoubtedly mr. bush will be praised by some latin leaders prone to pay <unk> service to <unk> while they privately encourage more <unk> u.s. action to remove gen. manuel noriega and <unk> their countries from a sandinista <unk> + the panamanian affair is only the tip of a more <unk> <unk> + it <unk> in a bush administration decision not to <unk> the u.s. congress and avoid at all costs being accused of <unk> in the region + the result has been a dangerous vacuum of u.s. leadership which leaves central america open to soviet <unk> + the influence of the u.s. is not being felt in central america washington 's decisions do not respond to a policy and are <unk> from reality says fernando <unk> a costa rican congressman and former foreign minister + the disarray of the bush administration 's latin <unk> was evident in the failure of the organization of american states to condemn <unk> gen. noriega + faced with this embarrassment u.s. diplomats expressed confidence that the influential <unk> group of south american nations which gathered last week in peru would take a stronger posture toward the panamanian dictator + but other than a few <unk> on the <unk> gen. noriega went <unk> by that body too he was not even singled out in the closing statement + now mr. bush will come to costa rica and <unk> nicaraguan <unk> daniel ortega eager for photo opportunities with the u.s. president + the host costa rican president <unk> arias did not <unk> chile cuba panama or <unk> to the summit which was to be restricted to <unk> + however mr. ortega was included + formally upgrading the sandinistas to a democratic status was an initiative <unk> criticized in the costa rican press + even carlos manuel <unk> the presidential candidate for mr. arias 's national liberation party made public his opposition to the presence of nicaragua in a democratic <unk> + nevertheless the bush administration agreed to the dubious arrangement in july a few weeks before the central american presidents met in <unk> honduras to discuss a timetable for <unk> the <unk> rebels + according to officials in washington the state department hoped that by <unk> president arias it would gain his support to postpone any decision on the contras until after mr. ortega 's promises of democratic elections were tested next february + however relying on an <unk> critic of the reagan administration and the contra movement for help in delaying the <unk> of the contras was risky business + and even some last-minute phone calls that mr. bush made at the <unk> of some conservative u.s. senators to <unk> backing for the u.s. position failed to stop the march of mr. arias 's agenda + prior to this episode sen. christopher dodd d. conn. <unk> an open field <unk> a personal diplomatic mission through central america to promote an early <unk> of the rebels + visiting nicaragua he praised the sandinistas for their electoral system and <unk> the bush administration for not rewarding the sandinistas + in honduras where the contras are a hot political issue he promised to help <unk> some $ N million in assistance withheld due to the failure of local agencies to comply with conditions agreed upon with washington + aid was also the <unk> of the talks sen. dodd had with <unk> president <unk> <unk> mr. <unk> 's government is very much at the <unk> of u.s. <unk> and is forced to listen very carefully to sen. dodd 's likes and <unk> + it was therefore not surprising that close allies of the u.s. virtually neglected by the bush administration ordered the nicaraguan <unk> <unk> by december long before the elections + <unk> the <unk> accords were <unk> by <unk> the dodd plan + the individual foreign policy carried out by u.s. legislators adds to a confusing u.s. performance that has <unk> soviet initiatives in central america + on oct. N following conversations with secretary of state james baker soviet foreign minister eduard shevardnadze arrived in managua to <unk> nicaragua 's great peace efforts + there mr. shevardnadze felt <unk> to unveil his own peace plan the u.s.s.r. would <unk> a suspension of arms shipments to nicaragua after the february election if the u.s. did likewise with its allies in central america + he also called on nicaragua 's neighbors to accept a military <unk> guaranteed by both <unk> + the pentagon claims that in spite of moscow 's words east bloc weapons continue to flow into nicaragua through cuba at <unk> levels + since mr. shevardnadze 's proposals followed discussions with mr. baker <unk> arose that the bush administration was seeking an <unk> with the soviets in central america + this scheme would fit the arias plan which declared a false <unk> between soviet military aid to the sandinista <unk> and that provided by washington to freely elected governments + furthermore it is also likely to encourage those on capitol hill asking for cuts in the assistance to el salvador if president <unk> does not <unk> to demands of the marxist guerrillas + the sad condition of u.s. policy in central america is best <unk> by the recent end to u.s. <unk> of radio costa rica + in N the costa rican government requested help to establish a radio station in the northern part of the country flooded by <unk> of sandinista propaganda + recovering <unk> sovereignty was the purpose of radio costa rica funded by the u.s. and affiliated with the voice of america <unk> + a few months ago the bush administration decided to stop this cooperation leaving radio costa rica operating on a <unk> + according to news reports the abrupt termination was due to fears that <unk> <unk> could interfere with the peace process + in the meantime russia gave nicaragua another powerful radio <unk> which has been installed in the city of <unk> + it is capable of reaching the entire caribbean area and deep into north america + perhaps its loud signal may generate some awareness of the soviet <unk> being created in the <unk> thanks to u.s. default + the soviet <unk> in nicaragua is <unk> for costa rica a peaceful democracy without an army + questioned in washington about what would happen if his <unk> peace plan would fail president arias voiced expectations of direct u.s. action + a poll conducted in july by a <unk> affiliate showed that N N of costa <unk> believe that if their country is <unk> attacked by either nicaragua or panama the u.s. will come to its defense + but in the light of events in panama where the u.s. has such clear strategic interests waiting for the delta force may prove to be a dangerous <unk> + mr. <unk> is a lawyer and a columnist for la <unk> newspaper + holiday corp. said net income jumped N N partly on the strength of record operating income in its <unk> division + separately the hotel and gambling giant said it was proceeding with plans to make a tender offer and <unk> <unk> with respect to approximately $ N billion of its publicly traded debt + that debt is part of the $ N billion of holiday debt that bass plc of britain said it would retire or assume when it agreed to buy the holiday <unk> business in august + holiday said third-quarter earnings rose to $ N million or $ N a share from $ N million or N cents a share a year earlier + results for the quarter included $ N million in pretax gains from property transactions including the sale of one embassy suites hotel and $ N million of nonrecurring costs associated with the acquisition of the holiday <unk> business by bass + holiday said operating income related to <unk> increased N N to a record $ N million from $ N million a year earlier + the jump reflected record results in las vegas nev. and atlantic city n.j. as well as a full quarter 's results from <unk> 's del <unk> in <unk> <unk> + third-quarter revenue rose N N to $ N million from $ N million + for the nine months earnings fell N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + revenue dropped N N to $ N billion from $ N billion + the tender offer and consent solicitation will be made to <unk> in december + in effect holiday is asking holders for permission for bass to buy their debt + holiday said salomon brothers inc. has been retained to act as the <unk> and financial adviser in connection with the offer and solicitation + the debt issues involved and the proposed consent fees and cash tender offer prices expressed per $ N of principal amount are as follows N N N senior notes due N at N N N N subordinated debt due N at N N N N N notes due N at N N and N N N notes due N at N N + holiday said its N N notes due N also will be included in the tender offer and consent solicitation at a price to be determined by holiday prior to the <unk> of the offer + the television units of paramount communications inc. and mca inc. are exploring the possibility of offering prime-time programming to independent stations two nights a week industry executives say + although such a venture would n't match the fourth network created by news corp. 's fox broadcasting co. mca and paramount may have similar ambitions + fox which also owns six tv stations provides programs three nights a week to those and other affiliates + paramount domestic tv and mca tv formed a joint venture last month named premier advertiser sales to sell advertising in programs syndicated by both companies such as star <unk> the next generation charles in charge and friday the 13th the series + a spokeswoman for paramount said the company does n't comment on speculation + calls to <unk> schwab president of mca tv were n't returned + the two companies like fox already have their own tv stations + mca owns <unk> in new york and paramount last month agreed to purchase a N N stake in the <unk> broadcast group from salomon inc. in a deal valued at $ N million + <unk> owns five stations including <unk> a fox affiliate in philadelphia + one broadcasting executive familiar with the project said the <unk> would target stations affiliated with fox because fox has the desirable independent stations in most of the key cities + currently fox supplies programs on <unk> <unk> and <unk> although the company plans to expand to other <unk> + jamie <unk> president of fox broadcasting said we believe the partnership of fox its affiliates and advertisers is succeeding and will continue to grow + another fox official who declined to be identified said fox was n't pleased by the possible <unk> venture into prime-time programming + to make the venture work they would need fox affiliates he said + we spent a lot of time and money in building our group of stations he said adding that fox does n't appreciate another company attempting to <unk> its station lineup + fox said it plans to offer its stations movies theatrical and <unk> ventures probably on <unk> sometime next year + it is also planning another night of original series + paramount and mca according to the broadcasting executive plan to offer theatrical movies produced separately by paramount and mca for <unk> and perhaps a block of original shows <unk> + the executive said paramount and mca have also held discussions with <unk> industries ' broadcasting unit which owns five independent stations in cities such as los angeles san francisco and <unk> <unk> + a <unk> station manager said there have been no formal talks + i think it 's to fox 's advantage to be associated with the <unk> venture said michael conway station manager of <unk> the <unk> station that is a fox affiliate + mr. conway said the fox shows appearing on nights when <unk> shows would n't be offered could be <unk> on the programs produced by <unk> + michael fisher general manager of <unk> a fox affiliate in sacramento calif. said the real question is whether the <unk> offering is practical + it is n't + why would i consider giving up fox a proven commodity for an unknown venture + fox attracts a young audience with shows such as married with children its most successful series + banco popular de puerto rico and banponce corp. agreed to merge in a transaction valued at $ N million + under the agreement banponce stockholders will be able to exchange each of their shares for either shares in the new entity or cash + in each case the exchange is valued at $ N a share + the two companies both based in san <unk> will form a bank holding company with assets of just over $ N billion + the holding company will be called banponce corp + the primary subsidiary will be the combined banking operations of the two companies and will be known as banco popular de puerto rico + <unk> <unk> jr. chairman of banco popular will be the chairman of the holding company + <unk> m. <unk> currently chairman of banponce will serve as president of the bank holding company and chairman of the subsidiary + banco popular originally proposed the merger in july in a cash and stock transaction valued at $ N a share or about $ N million + banponce reacted <unk> at first but appeared to be won over analysts said by banco popular 's assurances that it wanted only a friendly transaction + banco popular just kept waiting said edward thompson a vice president and analyst at thomson <unk> inc. in new york + they got a transaction that 's good for both companies + the two banks appear to be a good fit + banponce <unk> to a more affluent customer while banco popular has always had a large presence among <unk> and <unk> markets + the merger should also allow the companies to reduce costs by combining operations in many locations in puerto rico + they 're often right across the street from one another mr. thompson said + richard <unk> who is currently president and chief executive officer of banco popular said the merger will result in a larger and stronger locally based bank + mr. <unk> who will now serve as president and chief executive officer of the subsidiary bank added we 'll be able to better compete with large foreign banks + it makes sense from a strategic standpoint + the newly merged company will have N branches in puerto rico and N branches outside of the island + the banks said they do n't expect the merger to face any regulatory hurdles + mr. <unk> said the merger should be completed in six to nine months + hit by higher costs and lower sales caterpillar inc. said third-quarter earnings tumbled N N and full-year earnings will trail last year 's results + the construction equipment maker said third-quarter profit fell to $ N million or $ N a share from $ N million or $ N a share a year earlier + sales dropped N N to $ N billion from $ N billion reflecting eight fewer business days in the latest quarter + the company which is in a costly modernization program said earnings were hurt by higher start-up and new program costs increased costs of materials higher wages and an $ N million provision for bad debts in latin america + in announcing a N capital spending plan of $ N million early this year caterpillar said full-year earnings would be flat compared with last year 's $ N million or $ N a share + but yesterday the company said this year 's profit will be lower + it did n't say by how much + suffering from a downturn in heavy truck production that cut orders for its engines caterpillar also said it will indefinitely lay off about N workers in the <unk> area and temporarily shut its plant in york pa. for two weeks in both november and december + for the first nine months of the year caterpillar said earnings fell N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + sales rose to $ N billion from $ N billion + <unk> inc. said it is one of two companies to receive a license to introduce and operate a cellular mobile telephone system in pakistan + the market during the start-up is estimated at N subscribers + a spokeswoman for <unk> a telecommunications company said she did n't know the value of the contract + cable & <unk> plc of britain won the other license + <unk> said it would build and operate the system in pakistan with <unk> international ab part of the <unk> group of sweden and <unk> international pakistan + b.a.t industries plc won overwhelming shareholder approval for a defensive restructuring to fend off a # N billion $ N billion takeover bid from sir james goldsmith + at a shareholders ' meeting in london the tobacco financial-services and retailing giant said it received N N approval from voting holders for plans to spin off about $ N billion in assets + b.a.t aims to sell such u.s. retailing units as marshall field and saks fifth avenue and float its big paper and british retailing businesses via share issues to existing holders + proceeds will help pay for a planned buy-back of N N or about N million of its shares and a N N dividend increase + b.a.t yesterday started its share buy-back + the company said it acquired N million shares for N pence $ N each or a total of # N million $ N million from its broker barclays de zoete wedd + the share buy-back plan is likely to <unk> b.a.t 's share price + b.a.t said it may make more equity purchases until the close of business today depending on market conditions but will cease further purchases until nov. N when it releases third-quarter results + b.a.t shares rose N pence to N pence on london 's stock exchange yesterday + shareholder approval sets the stage for a lengthy process of restructuring that might not be completed until next year 's second half + before the recent <unk> in global financial markets b.a.t officials holders and analysts had expected a substantial part of the restructuring to be complete by the end of the first half + we are not in any hurry to sell saks marshall field or b.a.t 's other u.s. retail properties said chairman patrick <unk> + this is n't a <unk> sale + we are determined to get good prices + company officials say the <unk> of the paper and british retailing businesses are likely only after the <unk> of the u.s. retailing assets + meanwhile sir james still is pursuing efforts to gain u.s. insurance regulators ' approval for a change in control of b.a.t 's farmers group inc. unit + the <unk> financier has indicated he intends to bid again for b.a.t if he receives approval + hasbro inc. the nation 's largest toy maker reported third-quarter earnings increased N N from a year earlier on a N N sales gain reflecting improved margins + hasbro said it had net income of $ N million or N cents a share up from $ N million or N cents a share a year earlier when it took a pretax charge of $ N million after dropping development of an interactive video entertainment system + revenue rose to $ N million from $ N million + the company cited sales gains at its milton bradley and <unk> units and in its international business for the increase in revenue + alan g. <unk> chairman and chief executive added that hasbro 's new line of <unk> racing cars called record breakers and its acquisition of <unk> patch kids <unk> and other lines from <unk> industries inc. puts the company in a good position as we enter the christmas buying season + for the first nine months of the year hasbro 's net income rose N N to $ N million or $ N a share from $ N million or N cents a share on a N N increase in revenue to $ N million from $ N million a year earlier + reebok international ltd. posted a N N increase in third-quarter net income despite a slight decline in sales + the athletic <unk> maker said net rose to $ N million or N cents a share from $ N million or N cents a share a year earlier + sales declined N N to $ N million from $ N million + paul fireman reebok chairman and chief executive officer said our gains in earnings provide further evidence that the controls we have put in place and our sales mix are continuing to improve the company 's overall profit performance + the company said it expects sales to improve due to a number of new products including a pump basketball <unk> that can be inflated to better fit the foot + in the first nine months net was $ N million or $ N a share on sales of $ N billion + separately reebok completed the acquisition of <unk> group inc. 's boston <unk> unit a <unk> of power <unk> + <unk> <unk> mass. had agreed to sell the unit to reebok for about $ N million + the agreement also called for reebok to receive warrants to purchase N shares of <unk> common at $ N a share exercisable at any time before july N + an outside spokesman for <unk> said the terms were changed to a minor extent but would n't disclose what those changes were + pitney bowes inc. directors authorized the company to seek buyers for its <unk> group inc. subsidiary a direct mail marketer of office supplies + pitney bowes said the decision was based on a long-term analysis of the <unk> of <unk> group 's marketing business with other pitney bowes operations + pitney bowes acquired the core of what <unk> into <unk> group in N by buying dictaphone corp + a spokeswoman would n't comment on whether the company had talked with any potential buyers for the new hartford conn. unit which had N sales of about $ N million + she said <unk> group was profitable but would n't give figures + the spokeswoman said the company does n't have a timetable for the sale adding that the board 's decision just starts the search for a buyer + separately pitney bowes said third-quarter net income gained N N to $ N million or N cents a share from $ N million or N cents a share a year ago + revenue grew N N to $ N million from $ N million + the company said the growth was led by its major operations particularly mailing shipping <unk> and facsimile businesses + steel jackets of a type that may have prevented collapse of the columns of a <unk> stretch of the nimitz freeway had been installed on at least a small test section of the <unk> highway last year by california 's department of transportation employees familiar with the project say + the test project which reportedly survived tuesday 's earthquake was a prelude to a state plan to <unk> that critical section of the freeway with the steel <unk> + state engineers have made a preliminary finding that it was failure of the concrete columns <unk> and <unk> from the <unk> <unk> that was responsible for the collapse + the failure in oakland of the freeway segment known as the cypress structure was the <unk> aspect of the quake although officials were hopeful yesterday that the death toll there might be significantly lower than the N initially feared + <unk> out the <unk> is expected to take several days + red <unk> <unk> picked at the rubble while <unk> tried to break up some of the massive <unk> of concrete + giant yellow <unk> were <unk> up alongside the collapsed segment preparing to lift off chunks of the debris + in sacramento a transportation department spokesman said he could n't immediately confirm or deny existence of the test work + however he asserted that the department had n't <unk> the technology needed to <unk> the entire cypress structure + moreover other officials noted <unk> in transportation funding that the state has experienced over the years may have restricted the availability of funds for such a <unk> even if it were <unk> <unk> + knowledgeable employees said the <unk> which had n't yet been <unk> was part of a planned <unk> reinforcement of the cypress structure begun by the california transportation department several years ago + the cypress reinforcement project itself was part of an annual effort to shore up structures believed vulnerable to earthquakes + the state began such work after a N <unk> in southern california when numerous bridges collapsed + we had just finished phase two of the cypress project that involved <unk> a series of retaining <unk> designed to prevent sections of the roadway from <unk> as a result of seismic shock a state <unk> engineer said + after completing installation of the jackets on one frame of the freeway last year the state <unk> had sent the project over to its sacramento engineers to draw up a final design + knowledgeable employees said the project had been <unk> somewhat by the difficulty of designing the jackets + the procedure involves <unk> the concrete columns with steel then connecting them more <unk> to the <unk> <unk> + the employees also said the project may have been <unk> by budgetary concerns + one preliminary estimate put the <unk> cost at as much as $ N million + the collapse of the span has provoked surprise and anger among state officials + gov. george deukmejian who said he had been assured by state transportation officials that the structure could withstand an even larger quake called for an immediate investigation + i want to know who made the decision that it was safe for N people to use every day said richard katz a state legislator who is chairman of the california assembly 's transportation committee + he said he would <unk> hearings within two weeks + the cypress structure opened in june N and as such like many buildings in the san francisco bay area does not meet current building codes requiring considerably more steel support + the northern <unk> of the span lie in <unk> deposits that were of a type to have <unk> easily during the N quake + transportation department officials however said they were as surprised as anyone by the cypress destruction + they said previous earthquakes suggested that <unk> <unk> would stand up well although they were working on ways to bolster them + unfortunately there is only one laboratory for developing techniques to withstand earthquakes and that is an earthquake said <unk> <unk> san francisco district director for the transportation department + he said we know of no technology that exists anywhere in the world that would allow us to reinforce the columns + financial corp. of santa barbara said it <unk> to nov. N a special shareholder meeting to vote on a $ N million <unk> exchange + the meeting had been scheduled for nov. N but the company delayed the meeting to allow time for the securities and exchange commission to review the proposal + as part of a restructuring announced earlier this year the company proposed in august to exchange N newly issued common shares for each $ N face value of debt + however that figure could be revised financial corp. said + currently the company has about six million common shares outstanding + if all the debt was converted about N million new shares would be issued + in composite trading wednesday on the new york stock exchange financial corp. closed at $ N unchanged + the debt consists of $ N million of N N N subordinated notes due N and $ N million of N N convertible subordinated debentures due N + financial corp. also is proposing to exchange each of its N outstanding shares of cumulative convertible preferred series a stock for two shares of common + after years of <unk> over bonn 's <unk> west germany and the u.s. appear to have shifted onto a united course in eastern europe + bonn and washington have taken a leading role in aid for the <unk> countries <unk> billions of dollars in fresh credit and <unk> old debt while urging other industrial nations to follow suit + both hope to encourage pressure for change in east bloc countries still ruled by <unk> <unk> by arranging liberal financial aid and trade benefits for poland hungary and to a lesser extent the soviet union + west german officials also have the special goal of holding out hope for east germany 's fledgling reform movement + the change taking place in the soviet union poland and hungary has aroused new hope in both german states that reforms will be undertaken in east germany and that relations between the two german states too will get better said foreign minister <unk> <unk> + addressing a conference of the new york-based institute for <unk> security studies in frankfurt yesterday mr. <unk> said history will judge us by whether we have taken the opportunities that emerge from these reforms + the ultimate aim of western support for east bloc reforms he said is to create an equitable and stable peaceful order in europe from the atlantic to the <unk> + mr. <unk> and u.s. secretary of commerce robert a. mosbacher in separate <unk> at the conference appealed for more western contributions to economic reforms and business development in hungary and poland + bonn and washington are leading supporters of poland 's request for a $ N billion <unk> credit from the international monetary fund + we want the bold programs of market development and political freedom in hungary and in poland to succeed + we are prepared to support those changes said mr. mosbacher + u.s. curbs on the exports of sensitive technology to east bloc countries will remain in place however + meanwhile the u.s. house of representatives yesterday approved an $ N million aid package for poland and hungary that more than <unk> the amount president bush had requested + the package was brought to the house just N days after it was introduced indicating congress 's eagerness to reward poland and hungary for their moves toward democracy and <unk> economic reforms + the legislation approved N and sent to the senate <unk> two enterprise funds to be <unk> by independent nonprofit boards which will make loans and investments in new business ventures in hungary and poland + the polish fund would be <unk> with $ N million the <unk> fund with $ N million + in addition a group of N industrialized countries including the u.s. and japan and <unk> by the european community commission has promised poland and hungary trade advice and a line of credit equivalent to $ N billion through the european investment bank while the ec plans $ N million in direct aid + when chancellor helmut kohl <unk> to poland nov. N he is expected to take with him a promise of three billion west german marks $ N billion in new credit guarantees for industrial projects + last week bonn agreed to <unk> N billion marks in polish debt that came due last year + in addition a one billion mark credit dating from N is to be written off + poland 's plan to switch to a free-market economy by N is hampered by a foreign debt load of $ N billion + west germany also has increased its credit guarantees to hungary by N million marks to N billion marks as the emerging democratic state <unk> through its own economic reforms including a broad privatization of state-owned industry and tax incentives for industrial investment + an additional N million marks in <unk> was promised by the west german state governments of <unk> and <unk> + deutsche bank ag which last year arranged a three billion mark credit for the soviet union is now moving to become the first west german bank to set up independent business offices in hungary and poland as they shift to free-market economies + a <unk> of frankfurt banking holds that wherever deutsche bank goes other west german banks follow + indeed at least four other west german banks are believed to be making inquiries + mattel inc. said third-quarter net income rose N N to $ N million or N cents a share from $ N million or N cents a share a year ago + revenue rose N N to $ N million from $ N million a year earlier + mattel 's world-wide volume has grown N N in a climate of relatively flat industry sales said john w. <unk> chairman + he said the toy company 's prospects for a strong fourth quarter are also good + mattel attributed the jump in quarter net to strong world-wide sales of its <unk> <unk> hot wheels cars disney toys and other well-known toy lines + the company also cited retail trade and consumer demand for new products introduced this year such as cherry <unk> <unk> and <unk> <unk> + for the nine months mattel net more than doubled to $ N million or $ N a share from $ N million or N cents a share a year ago + revenue rose N N to $ N million from $ N million + mattel said the company 's sale of rights to land and buildings at its <unk> calif. headquarters resulted in a $ N million charge to third-quarter operating profit + the charge did n't affect net for the quarter as it was offset by tax benefits + mattel has purchased a new headquarters building in el <unk> calif. which it will <unk> by the end of next year + democracy can be <unk> to politicians sometimes it forces them to make choices + now that the supreme court opened the door on the subject of abortion politicians are <unk> under the glare of democratic choice + their <unk> is a healthy sign for the rest of us + republicans are <unk> most painfully at least at first which is only fair because they 've been <unk> the most + so long as abortion was a question for litigation not legislation republicans could find political security in <unk> + they could attract <unk> voters by adopting the <unk> movement 's strongest position even as pro-choice republicans knew this <unk> little on an issue <unk> by the court + now it matters + much of washington thought it detected george bush in a characteristic <unk> on abortion the past week + only a month ago he 'd warned congress not to pass legislation to pay for abortions in cases of rape or incest + last friday after congress passed it anyway he hinted he was looking for compromise + was the man who once was pro-choice but later pro-life converting again + in fact mr. bush 's dance was more <unk> than <unk> + pro-life advocates say the white house never <unk> over the veto + christopher smith r. n.j. a pro-life leader in the house suggested a compromise that would have adapted restrictive language from rape and incest exceptions in the states + the white house never eager for a fight was happy to try which is why george bush said he was looking for flexibility last week + when democrats refused to <unk> pro-life republicans met at the white house with chief of staff john <unk> on monday and mr. bush quickly signaled a veto + amid charges of <unk> on panama and elsewhere the president was n't about to <unk> his most energetic constituency + the gop <unk> were in congress + in last week 's house vote N republicans <unk> + after the vote connecticut rep. nancy johnson <unk> up nearly as many <unk> on a letter to mr. bush urging him not to veto + even such a pro-life <unk> as sen. <unk> hatch r. utah had <unk> some kind of compromise + the senate passed the same bill yesterday with a <unk> majority of N + the <unk> illustrates an emerging republican <unk> <unk> since the early 1980s + at the N gop convention abortion was barely discussed at all though delegates were evenly divided on the question of an anti-abortion constitutional amendment + ms. johnson made a <unk> statement to the platform committee but she was talking to herself + now many republicans are listening + they 're frightened by what they see in new jersey and especially virginia where pro-life gop candidates for governor are being <unk> on abortion + eddie <unk> a republican consultant says the two gop candidates could have avoided trouble if they had <unk> the issue first + in virginia marshall coleman and his running <unk> <unk> <unk> are both on the defensive for opposing abortions even in cases of rape or incest + but mr. <unk> adds the net loser in the next few years is the <unk> side + <unk> st. martin of the national right to life committee says exit polls from the N election had <unk> pro-life voters giving mr. bush about five more percentage points of support than pro-choice voters gave michael <unk> + but the supreme court 's opening of debate may have changed even that + gop <unk> neil newhouse of the <unk> group says polls this summer showed that the <unk> voters had about <unk> out + polls are no substitute for principle but they 'll do for some politicians + the republican danger is that abortion could become for them what it 's long been for democrats a divisive <unk> test + it 's already that in the bush administration at least for any job in which abortion is even <unk> an issue + oklahoma official robert fulton lost a chance for a senior job in the department of health and human services after <unk> activists opposed him + <unk> butler a conservative former congressman was barred from a legal services post after he gave wrong answers on abortion + even the president 's doctor burton lee has said on the record that he 'd love to be surgeon general but could n't pass the pro-life test + in the case of hhs secretary louis sullivan the <unk> test could yet damage issues important to other parts of the republican coalition + after mr. sullivan <unk> on abortion last year the white house <unk> <unk> by surrounding him with pro-life deputies + their views on health care and welfare did n't much matter though hhs spends billions a year on both + it makes only a handful of <unk> decisions + though democrats can <unk> at all this for now they may want to contain their <unk> + on abortion their own day will come + eventually even republicans will find a way to frame the issue in ways that <unk> pro-choice <unk> + does the candidate favor parental consent for <unk> abortions + the pro-choice lobby does n't + what about banning abortions in the second and third <unk> + the lobby says no again + democracy is forcing the abortion debate toward healthy compromise toward the <unk> middle + roe v. wade <unk> political debate so the <unk> <unk> + now the <unk> middle a moral majority of sorts is <unk> itself + within a few years the outcome in most states is likely to be that abortion will be more restricted but not completely banned + this is where the voters are which is where politicians usually end up + union pacific corp third-quarter net income fell N N + excluding earnings from discontinued operations a year earlier net fell only N N + the energy natural resources and railroad concern had net of $ N million or $ N a share down from $ N million or $ N a share a year earlier + in the N third quarter profit from continuing operations totaled $ N million + a year earlier the company had profit from discontinued operations of $ N million from sale of a pipeline a refinery and an interest in a second refinery + revenue rose N N to $ N billion from $ N billion + in composite trading on the new york stock exchange union pacific jumped $ N to $ N a share + the company said its union pacific railroad had a N N profit increase despite a N N rise in fuel costs and a N N drop in car <unk> + most of the commodity traffic was off the company said + earnings from continuing operations of the union pacific resources unit almost doubled the company said + it added that higher revenue strong crude oil prices and higher natural gas prices offset declines in production of oil gas and plant <unk> + in addition the company cited <unk> moves and interest income + earnings from union pacific realty dropped N N to $ N million + before good will <unk> transportation earnings fell N N to $ N million union pacific said + in the nine months net fell N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + profit from continuing operations in the year-earlier period was $ N million + revenue was $ N billion up N N from $ N billion + the federal trade commission ruled that five major <unk> companies illegally fixed prices for title <unk> services by participating in joint rating bureaus in six states + the ftc ordered the companies not to use rating bureaus in those six states + the commission order named the following companies <unk> title insurance co. of california a unit of los angeles-based <unk> chicago title insurance co. and <unk> title insurance co. units of chicago title & trust co. lawyers title insurance corp. a unit of richmond <unk> universal corp. and stewart title guaranty co. a unit of <unk> stewart information services corp + chicago title & trust acquired <unk> in N and changed the unit 's name to security union title insurance co + the ftc ruled that the companies violated federal antitrust law by <unk> rates in the following states new jersey pennsylvania connecticut wisconsin arizona and <unk> + the ftc first issued an administrative complaint in the case in N + john christie a lawyer here for the two chicago title & trust units accused the ftc of <unk> <unk> regulations with which he said his clients had <unk> + i expect all the companies to appeal he added + a lawyer for lawyers title said that because the named companies no longer use the type of cooperative rating bureaus attacked by the ftc the commission 's order wo n't have much practical impact + officials for the other named companies did n't return telephone calls seeking comment + mark resources inc. calgary alberta said it agreed to sell N million canadian dollars us$ N million of N N convertible debentures to a group of securities dealers + mark an oil and gas concern said the <unk> debentures are convertible before maturity at c$ N for each mark common share and can be redeemed at the company 's option under certain conditions after nov. N N + the government will try to sell all the real estate managed by the federal asset <unk> association in one fell <unk> said william seidman chairman of the federal deposit insurance corp + the <unk> real-estate package with an asking price of $ N million is <unk> of N properties in texas california colorado arizona and florida + it includes apartments shopping centers office buildings and undeveloped land + mr. seidman is chairman of the resolution trust corp. established to sell or merge the nation 's hundreds of insolvent savings-and-loan associations + the rtc created by this year 's s&l bailout legislation is trying to sell <unk> 's network of offices separately + <unk> which holds problem assets of thrifts that were closed before the bailout legislation was enacted is being liquidated + the properties held by <unk> wo n't be sold <unk> mr. seidman said in a speech before southern <unk> university business school in dallas + you need to buy the entire lot mr. seidman said so get out your <unk> + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + <unk> corp. $ N million of N N N notes due oct. N N priced at N to yield N N + the noncallable issue was priced at a spread of N basis points above the treasury 's 10-year note + rated <unk> by moody 's investors service inc. and <unk> by standard & poor 's corp. the issue will be sold through underwriters led by merrill lynch capital markets + virginia public school authority $ N million of school financing bonds N series b N resolution due N N and N through a <unk> securities corp. group + the bonds rated double-a by moody 's and s&p were priced to yield from N N in N to N N in N + serial bonds were priced to yield to N N in N + bonds due N carry N N coupons and bonds due N carry N N N coupons + term bonds due N are n't being formally reoffered + they carry a N N coupon + term bonds due N are N N securities priced at par + st. johns river water management district fla. $ N of land acquisition revenue bonds series N due N N N and N tentatively priced by a smith barney harris upham & co. group to yield from N N in N to about N N in N + there are $ N million of N N term bonds due N priced at N N to yield about N N + the $ N of term bonds due N and the $ N of term bonds due N are n't being formally reoffered + serial bonds were priced at par to yield to N N in N + the bonds are insured and rated triple-a by moody 's and s&p + federal home loan mortgage corp. $ N million of remic mortgage securities being offered in N classes by salomon brothers inc + the offering series N is backed by freddie mac N N N securities + separately $ N million of freddie mac remic mortgage securities is being offered in N classes by kidder peabody & co + the offering series N is backed by freddie mac N N N securities + according to available details yields range from N N a spread of N basis points over three-year treasury securities to N N a spread of N basis points over 20-year treasurys + the offerings bring freddie mac 's N remic issuance to $ N billion and its total volume to $ N billion since the program began in february N + european investment bank agency N billion lire of N N bonds due nov. N N priced at N N to yield N N less full fees via lead manager banco commercial <unk> + fees N N + ibm international finance u.s. parent N million european currency units of N N N bonds due nov. N N priced at N N to yield N N at the recommended reoffered price of par via banque paribas capital markets + societe generale australia ltd french parent N million australian dollars of N N bonds due nov. N N priced at N to yield N less fees via <unk> banking corp + guaranteed by societe generale + fees N N + mitsubishi trust & banking corp japan N million swiss francs of privately placed convertible notes due march N N with a fixed N N coupon at par via union bank of switzerland + put option on march N N at a fixed N N to yield N N + callable from march N N at N N declining two points <unk> to par + each N swiss franc note is convertible from <unk> N N to march N N at a premium over the closing share price oct. N when terms are scheduled to be fixed + also the company issued N million marks of convertible bonds with an indicated N N N coupon due march N N at par via <unk> <unk> <unk> bank + put on march N N at an indicated N to yield N N + call option beginning march N N if the price of the stock rises more than N N within N trading days as well as a call option for tax reasons + each N mark and N mark bond is convertible from nov. N N to march N N at a price to be determined when terms are fixed oct. N + <unk> airlines system sweden N million swiss francs of N N N bonds due nov. N N priced at N N to yield N N via union bank of switzerland + call from nov. N N at N N declining N point a year + federal home loan mortgage corp. $ N million of 10-year debentures with a coupon rate of N N priced at par + the debentures callable at par in five years were priced at a yield spread of about N basis points above the treasury 10-year note + the issue is being sold through freddie mac 's <unk> securities selling group + the debentures mature oct. N N + the debentures will be available in <unk> form only in a minimum amount of $ N and additional <unk> of $ N + interest will be paid <unk> + first they get us to buy computers so we can get more information + then the computers give us more information than we can ever read + now they plan to sell us products that <unk> through all the information to give us what we really want to know + the products range from <unk> personal newsletters to systems that sit inside a personal computer and pick stories on selected topics off news wires + <unk> news is what people want says <unk> <unk> editor of release N an industry newsletter that spots new developments + most people read N times more than necessary in order to find out what they really need + <unk> <unk> who dropped out of high school back in the 1970s to manage a computer network at a california research firm says old network hands have started to turn off the network because they do n't have time to wade through the <unk> + mr. <unk> has started a menlo park calif. company called <unk> technology that provides human editors for public electronic networks + i see it as a <unk> treatment plant he says + a new product <unk> carries five business news wires simultaneously into a user 's computer and <unk> and <unk> whenever an article appears that is of interest to the user + the product developed by desktop data corp. a new company based in <unk> mass. <unk> the wires looking for articles that contain key words specified by the user + one early user david <unk> a chicago venture capitalist and investor in desktop data says he uses it to track takeover developments + he says he told <unk> to look for stories containing such words as takeover acquisition acquire lbo tender merger junk and halted + i 'm pretty confident i 'm catching everything he says + <unk> is <unk> $ N a year for a limited version $ N a year if the cost of all the news wires is included + and it works best in <unk> personal computers + but some investors and consultants who have tried it are enthusiastic + jeffrey <unk> editor of <unk> a <unk> mass. industry newsletter says i 've seen a lot of people <unk> around on the <unk> of <unk> information + this is the first time i 've seen something i could imagine a lot of people using + <unk> uses an fm radio band to carry news wires provided by reuters mcgraw-hill and dow jones & co. as well as <unk> <unk> which carries corporate press releases + an fm receiver attached to a user 's personal computer receives the information + some organizations have devised their own systems to sort through news wire items as they come in + george <unk> an account manager at royal bank of canada adapted a lotus development corp. program called agenda to sort through international news wires + it automatically <unk> stories from particular countries for reading by the international bankers responsible for lending in those areas + for those who do n't need their <unk> information moment by moment some services are offering overnight newsletters + individual inc. a new company in <unk> mass. uses <unk> technology developed by cornell university computer scientist gerard <unk> to automatically produce <unk> newsletters it sends electronically to subscribers by N a.m. the next day + we are operating an information refinery that takes a broad stream of raw data and turns it into <unk> knowledge says <unk> <unk> founder and president + the daily newsletter which is n't widely available yet will have a base cost of $ N a year and provides full text of relevant articles under license agreements with reuters <unk> hill united press international two press release news wires and japan 's <unk> news service + one early user is nec corp. 's u.s. printer marketing arm + they want the full press releases on printer announcements by their competition mr. <unk> says + it also tracks personnel and financial announcements by nec 's distributors and customers + individual inc. 's technology goes beyond word searches by using a computerized <unk> + if a customer asks for stories about ibm the computer will also supply stories that mention <unk> international business machines or big blue mr. <unk> says + moreover individual inc. 's computers can weigh the value of an article based on how closely the story matches the subscriber 's interest area + it compares the position of key words in the story words in the headline or first <unk> get a higher value + and it <unk> how often the words appear in the story compared with how often they appear in the entire data base + the higher the ratio of hits to total words the higher the presumed value to the reader + pinpoint information corp. <unk> va. a producer of $ <unk> <unk> newsletters about the computer industry that started full operation last month relies on N human readers to code news releases by topic in order to select items for each subscriber + the computers find all the key words they can but the editors confirm every one + computer picking is n't perfect says <unk> <unk> president and founder of pinpoint + the humans also write <unk> of articles from some N computer industry publications + once all the articles are <unk> and put in a data base pinpoint 's computers pick the most relevant for each subscriber and lay them out in a <unk> newsletter format each newsletter is sent directly from the computer to the subscriber 's fax machine + mr. <unk> says each of his computers can produce and send about N unique newsletters a night + many computer network users who never see news wires would like to sort through their electronic mail automatically + so-called <unk> is the collection of <unk> <unk> <unk> technical data schedules and <unk> distributed over local and national computer networks + all these <unk> computers make it difficult to sort out what 's junk and what 's important says chuck <unk> a former lotus development executive who has started a new company to cope with the problem + mr. <unk> says his firm beyond inc. has licensed technology known as information lens from massachusetts institute of technology and plans to develop it for commercial use + the mit project devised ways for <unk> to be automatically <unk> as top priority if it comes from certain designated <unk> or requires action in the next couple of days + mr. <unk> says that beyond will <unk> the product so the message will be smart enough to know to come back and bother you again next week + and if a user is busy he can set it for crisis mode do n't bother me with reports until monday + a program called notes which is under development by lotus also is designed to sort <unk> sent within work groups + one thing that makes <unk> difficult to <unk> through is that each item looks the same + notes which is designed for advanced computers that display graphics allows mail <unk> to put different <unk> on their mail + a daily news briefing from the company <unk> for example would have a distinctive format on the screen just as a paper version would have + with <unk> you do n't have the <unk> clues of paper says mr. <unk> the editor of <unk> + with notes they 're <unk> distinct + dean witter reynolds inc. lost its second recent arbitration case involving a former <unk> executive + a new york stock exchange arbitration panel ordered dean witter to pay $ N in back bonuses to william kelly the company 's former head of high-yield high-risk junk-bond trading and sales + it also awarded $ N in back bonuses to former trader michael <unk> and $ N in fees to the two men 's attorneys + the sums awarded to messrs. kelly and <unk> represent bonuses the two men said they <unk> from the first half of N but which were n't paid because of a dispute over an incentive contract + jeffrey l. <unk> the two men 's attorney at <unk> <unk> finkelstein & robinson said mr. kelly began working at dean witter in N + mr. kelly built the company 's high-yield bond group which has been a minor player in the junk-bond arena + dean witter lost a separate case involving a former bond executive earlier this year in august it paid $ N in back pay and a bonus to a former <unk> trading chief harold <unk> + that award ended a dispute between dean witter and mr. <unk> over who was responsible for certain <unk> losses around the time of the N stock-market crash + a spokesman for dean witter a unit of sears roebuck & co. declined to comment + <unk> department stores inc. said it offered $ N million of N N N debentures due N at par + the little rock <unk> department-store retailer said proceeds will be used to reduce short-term debt + goldman sachs & co. was the underwriter + american brands inc. said third-quarter net income rose N N reflecting strong gains in its tobacco and <unk> spirits businesses + the company which also has businesses in life insurance office products and hardware and <unk> products said net income rose to $ N million or $ N a share from $ N million or $ N a share a year earlier + year-earlier results for the quarter and the nine months were restated to reflect a change in accounting standards + revenue declined N N to $ N billion from $ N billion because of the sale of <unk> life in march and the impact of the stronger u.s. dollar on overseas results + operating profit for world-wide tobacco products rose N N to $ N million + for <unk> spirits operating profit rose N N to $ N million + in the first nine months net rose N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + the year-earlier period included $ N million or N cents a share from discontinued operations + revenue rose to $ N billion from $ N billion + the average number of shares outstanding rose N N in the third quarter but was down N N for the nine months + in composite trading on the new york stock exchange american brands shares rose $ N to $ N + santa fe pacific pipeline partners limited partnership of los angeles increased its quarterly cash dividend to N cents a unit from N cents payable nov. N to units of record oct. N + the company is an independent <unk> pipeline serving six western states + washington lies low after the stock market 's roller-coaster ride + lawmakers <unk> by charges that some of their comments contributed to the N crash generally shy away from calls for sweeping new legislation + but a house energy and commerce subcommittee will <unk> sec chairman breeden wednesday and treasury secretary brady will go before the senate banking panel thursday + the market 's wild week may speed along the <unk> legislation that has been pending for months in the aftermath of the N crash + it may also <unk> the sec 's modest pending changes in junk-bond disclosure rules and intensify the treasury 's look at plans for giving new tax breaks on dividends and raising taxes on short-term trades by pension funds + brady and breeden work well together on the plunge despite the fact that the treasury secretary opposed breeden 's nomination to the sec post + baker <unk> in the mideast amid israeli <unk> and palestinian politics + despite seeing his plan for <unk> elections <unk> the cautious secretary of state is so far unwilling to cut u.s. economic or military aid to force israeli cooperation + baker nonetheless remains <unk> both at shamir for backing down on the elections and at shamir 's rival <unk> for political <unk> in forcing a <unk> cabinet vote on baker 's plan + meanwhile some u.s. officials fear plo chief arafat is getting cold feet and may back off from his recent <unk> and <unk> of terrorism + he is under intense fire from other palestinian groups <unk> is pushing <unk> <unk> whose terrorist band is blamed for the pan am N <unk> as an alternative to arafat + <unk> <unk> on the budget and capital gains hurt him in congress + republicans as well as democrats were angered by the budget director 's rejection of speaker foley 's effort to <unk> a <unk> measure by <unk> it of the capital-gains tax cut as well as pet democratic projects + darman now blames the clash on <unk> but house gop leader <unk> who carried the offer to him observes i was speaking english at the time and quite loud so i could be understood + senate gop leader dole <unk> the budget chief on the senate floor + democratic counterpart mitchell asked to interpret darman 's threat to make permanent the across-the-board gramm-rudman cuts that took effect this week says i do n't even bother to interpret them + but darman suggests such <unk> will <unk> quickly + if i can show signs of maturity almost anybody can he jokes + hhs officials expect secretary sullivan to continue a ban on research using <unk> tissue + before he was confirmed sullivan said he had reservations about any blanket <unk> on medical research + but now an official says he is surrounded by <unk> who contend that any <unk> in fetal-tissue research could increase the demand for abortions + cooperation <unk> on weapons development between the u.s. and europe + britain france and italy pull out of a proposal to build new nato <unk> the u.s. and west germany have each withdrawn from missile projects + defense experts say joint projects are increasingly squeezed by budget pressures and the desire to save domestic jobs some also fear rising <unk> as european unity <unk> + both sides now + virginia gop <unk> governor candidate <unk> <unk> tries to have it both ways on the abortion issue + though she opposes abortion in almost all cases she <unk> a tv commercial using pro-choice <unk> + a woman ought to have a choice in cases where her life or health are in danger and in cases of rape or incest she <unk> + hot topic + interest in the abortion issue is so great that the <unk> a daily <unk> political newsletter comes up with a spinoff product called the abortion report dealing solely with its political implications + conservatives expect bush to <unk> their majority on a key court + bush has three <unk> to fill on the prestigious d.c. circuit court which handles many important regulatory issues and is often considered a <unk> for future supreme court <unk> + conservatives now hold only a N edge + one <unk> is expected to go to <unk> chairman <unk> thomas a black conservative after <unk> a fight liberals now probably wo n't put up a major struggle against him + other conservatives thought to be on the administration 's short list include washington lawyer michael <unk> who was passed over for the no. N job at the justice department and marshall <unk> chairman of a u.s. agency on administration + the bush administration would also like to <unk> a woman one possibility is former justice department official <unk> <unk> + minor <unk> + in the wake of the failed panama coup a <unk> <unk> appears <unk> would have got him + rep. garcia on trial for bribery and <unk> puts statements in the congressional record <unk> missed votes to scheduling conflicts + a gop senate fund-raising letter from sen. burns of <unk> is made to appear personally written and its opening line is please excuse my <unk> + but burns <unk> in an interview that 's not my <unk> + <unk> shipping inc. new york declared an initial quarterly of N cents a share payable nov. N to shares of record oct. N + the announcement boosted the <unk> company 's shares which closed at $ N up $ N a share in composite trading on the american stock exchange + the company which went public in may intends to pay dividends from available cash flow the amount may vary from quarter to quarter + ever since the <unk> contested america 's cup race last year the famous <unk> match has run into more rough sailing out of the water than in it + now that a key member of the san diego <unk> club team is splitting off to form his own team even more competition lies ahead + peter isler the winning <unk> in the past two america 's cup challenges has split from the team led by dennis conner skipper of the <unk> stars & <unk> to form his own team for the next contest in N + and in addition to a crack team of <unk> mr. isler has lined up some real <unk> to help him finance the syndicate + isler sailing international 's advisory board includes ted turner turner broadcasting chairman and a former cup victor peter g. <unk> head of <unk> communications and joseph b. <unk> chairman and chief executive of <unk> inc + his steering committee includes other notable businessmen including the california investor and old salt roy e. disney + we have the structure people and plan mr. isler said in a statement + now the first order of business is raising enough money to keep his team afloat a new <unk> will cost about $ N million alone and sailing syndicate budgets can easily run to $ N million for a cup challenge + the split comes in the midst of a court battle over whether the san diego <unk> club should be allowed to keep the international <unk> for sailing a <unk> against the new zealand <unk> ' <unk> <unk> + in september a new york appellate court <unk> a state judge 's ruling that awarded the cup to the new zealand team + pending an appeal by the new zealand team led by michael <unk> the <unk> for the next cup challenge are scheduled to be held in <unk> in san diego + but because of the uncertainty of the outcome of the suit mr. conner 's team has done little to begin <unk> up to defend its title + if you do n't know what the rules of the game are it 's hard to start your fund-raising or design said <unk> smith an official with team dennis conner + the conner team wo n't be able to negotiate with corporate sponsors until the suit is resolved and the race site is determined mr. smith said and the syndicate 's budget could easily reach $ N million + but spokesmen for both mr. isler and mr. conner say the formation of the new syndicate has to do with mr. isler 's desire to skipper his own team and begin planning now rather than any falling out between the two <unk> + mr. smith and a spokesman for the america 's cup organizing committee insist that the added competition for the <unk> 's spot will only improve the race + missouri farmer <unk> <unk> writing in the fall issue of the heritage foundation 's policy review about the proposed location of a <unk> incinerator in his county + of course i 'd rather have a computer software firm in my <unk> than a hazardous waste incinerator + but i 'd also rather live next door to an incinerator than to some of the <unk> farms i 've seen and <unk> in these parts + an incinerator is also probably better than having nobody next door on our farm there are four <unk> houses + on my <unk> drive to farm headquarters each morning i drive by another four empty houses + a community of abandoned <unk> failing businesses and crumbling roads and bridges is hardly a desirable one + the loss of N jobs by a depressed county in rural missouri is hardly of national importance except for this if the most environmentally safe way of dealing with a national problem can not be built in <unk> county what hope have we for dealing with the <unk> our economy produces + after all farmers here work with hazardous chemicals every day many of them the same chemicals that would have been destroyed in the incinerator + we know they are dangerous but if handled with care their benefits far outweigh any risk to the environment + just because stamford conn. high school did nothing when its valuable 1930s mural was thrown in the trash does n't mean the city no longer owns the work of art a federal judge ruled + the mural now valued at $ N million according to <unk> was <unk> in a trash <unk> in N by workers who were <unk> the building + the <unk> mural painted by james <unk> in N was commissioned by the federal works project administration + after the discarded mural was found outside the school by a concerned stamford graduate it eventually was turned over to <unk> hoelzer a professional art <unk> + throughout the 1970s stamford school and city officials made no effort to <unk> the mural + apparently the officials did n't even know the mural was missing until N when a researcher found that the painting was in mr. hoelzer 's studio and questioned school officials about it + in N stamford officials <unk> mr. hoelzer for taking care of the mural and demanded he return it as soon as possible + mr. hoelzer however sued stamford claiming that the city had abandoned the <unk> and that it had waited too long to reclaim it + but judge louis l. <unk> of federal court in manhattan ruled that the city could n't be <unk> for waiting too long because it did n't realize until N that its ownership of the painting was in dispute + the judge also ruled that the painting was n't abandoned because officials did n't intend for it to be thrown away and were <unk> that the <unk> had discarded it + mr. hoelzer did n't return phone calls seeking comment on the judge 's decision + the judge ordered that a hearing be held nov. N to determine how much the city should pay mr. hoelzer for his services + mary e. <unk> corporate counsel for stamford said the city has discussed several possible plans for <unk> the mural which <unk> various scenes from the great depression + she said the mural <unk> an era in stamford and in our country when this type of work was being done + the prices of corn futures contracts jumped amid rumors that the soviet union is keeping up its dizzying october buying binge of u.s. corn + those rumors were confirmed after the end of trading yesterday when the u.s. agriculture department announced that the soviets had bought N million metric tons of u.s. corn bringing their u.s. corn purchases confirmed so far this month to about five million metric tons + in trading at the chicago board of trade the corn contract for december delivery jumped N cents a bushel to settle at $ N a bushel + the soviet purchases are close to exceeding what some analysts had expected the soviet union to buy this fall the season in which it usually buys much of the corn it imports from the u.s. + that pace is causing some analysts to speculate that the soviet union might soon purchase as much as another two million metric tons + one sign that more soviet purchases are possible is that u.s. grain companies yesterday bought an unusually large amount of corn futures contracts + that sometimes signals that they are laying plans to export corn + by some estimates several grain companies combined bought contracts for the <unk> of roughly one million metric tons of corn + by buying futures contracts these companies attempt to protect themselves from swings in the price of the corn that they are obligated to deliver + rumors of soviet interest also pushed up the prices of soybean futures contracts + among other things the agriculture department is widely thought to be <unk> whether to subsidize the sale of soybean oil to the soviet union + on top of all this corn and soybean prices rose on reports that the midwest harvest was disrupted by a <unk> early snow storm that dumped several inches in parts of indiana and ohio + the harvest delays however are expected to be temporary + <unk> temperatures are forecast for next week said robert <unk> an analyst at farmers grain & livestock corp. chicago + many farmers used the jump in prices to sell their recently <unk> crop to grain <unk> companies + the heavy selling by farmers helped to damp the price rally + wheat futures prices rose slightly + in other commodity markets yesterday + precious metals + futures prices declined + a number of developments were <unk> interpreted by traders + december delivery gold fell $ N an ounce to $ N + december silver eased N cents an ounce to $ N + january platinum was down $ N an ounce at $ N + one <unk> development was the lower-than-expected increase of only N N in the consumer price index for september an analyst said + he noted that the core inflation rate which <unk> food and energy was also low at N N + other news that weighed on the market initial unemployment claims rose by N last week american telephone & telegraph co. will reduce its <unk> staff by N through <unk> the oil market turned weaker there was n't any investor demand for bullion and the dollar strengthened during the day putting pressure on gold + also the analyst said economic circumstances are such that both south africa and the soviet union the principal gold and platinum producers are being forced to continue selling the metals + both are in great need of foreign exchange and south africa is also under pressure to meet foreign loan commitments he said + putting it all together we have a negative scenario that does n't look like it will improve overnight he said + copper + futures prices recovered in quiet trading + the december contract rose N cents a pound to $ N + that contract fell a total of N cents during the first three days of this week mostly in reaction to last friday 's stock market plunge which prompted concern that it might signal a similar sharp slowing of the u.s. economy and thus reduced demand for copper a leading industrial metal + in recent days however there has been increased purchasing of copper in london an analyst said + some of this buying was by japan which has had its supplies sharply reduced by long production <unk> at the bougainville mine in <unk> new guinea highland valley mine in british columbia and the cananea mine in mexico which are major shippers to japan + the increasing likelihood that cananea and highland valley will soon return to production may have cut some of that purchasing but even if any of these mines begin operating soon their output wo n't be significant until at least the end of the year analysts note + so one analyst said even though the long-term production problems may be easing there will still be a significant need for copper over the next three months when inventories will remain relatively low + energy + crude oil prices ended mixed + west texas intermediate for november delivery fell N cents a barrel to $ N + but so-called outer month contracts finished higher + for instance december contracts for <unk> rose N cents to $ N + most energy futures opened lower following wednesday 's market downturn + but a flurry of late trading yesterday <unk> up prices + heating oil and gasoline futures ended higher as well + <unk> belli 's san francisco law offices may have been the epicenter of legal activity after tuesday 's earthquake + in the first N minutes after his office 's telephone service was restored yesterday morning N potential clients had called seeking the services of the <unk> king of <unk> + mr. belli like many other personal-injury lawyers suspects that the earthquake which measured N on the richter scale will generate enough lawsuits to keep this city 's personal-injury and construction lawyers busy for quite some time + suits are likely to be filed against engineering firms contractors and developers as well as against <unk> agencies + but lawyers looking to cash in on the quake may have a tough time once their cases reach a judge + experts on california <unk> law say <unk> <unk> government agencies in such cases are pretty <unk> + even claims against individuals and companies face significant <unk> + the major legal barrier is the principle that no one can be held liable for an act of god + for now says laurence <unk> <unk> of the <unk> california trial lawyers association the last thing we really need to worry about is whether anybody is going to get sued or whether they have liability or not + we still have people <unk> around in a <unk> in san francisco worrying about whether it 's going to rain tonight + but that wo n't stop plaintiffs ' lawyers from seeking a little room for <unk> + in san francisco they argue an earthquake was a near <unk> + therefore engineering firms construction contractors and developers can be sued for not keeping structures up to standard and government agencies can be held <unk> for failing to properly protect citizens from such a foreseeable disaster if negligence can be proven + my prediction is there will be mass litigation over errors and <unk> in engineering and contracting says stanley <unk> a well-known cincinnati plaintiffs lawyer + from what he saw on television mr. <unk> points out that interstate N which collapsed and killed more than N commuters suffered serious damage while surrounding buildings appeared to sustain no damage <unk> + he adds that they were aware of the <unk> for earthquakes and the san andreas fault + the flamboyant and <unk> mr. belli says he already has investigators looking into who could be held liable for the damage on the bay bridge and the interstate approaching it + we wo n't know until the smoke clears but yes we 're looking into it he says + mr. belli says he wants to know whether state or federal engineers or private companies could have prevented the damage + mr. belli who was at candlestick park for the world series tuesday night says he has hired civil engineers to check out his own mildly damaged building and to investigate the bridge collapse + defense lawyers perhaps <unk> say that plaintiffs ' lawyers taking such an approach will have little success in pursuing their claims though they add that the facts of each case must be looked at <unk> + a lot of this is going to be <unk> says <unk> j. <unk> a construction law specialist at <unk> <unk> & <unk> a san francisco law firm + plaintiffs he says will argue that damaged structures were n't built to proper design standards + but if defendants can prove that they met san francisco 's <unk> building codes that 's probably going to protect them mr. <unk> says + government entities continues mr. <unk> could be protected by the california government <unk> liability act + under the statute agencies are provided defenses that normally are n't available in the private sector mr. <unk> says + the legislature does not want to inhibit the unique government activities by <unk> public entities to liability + built into the statute are so-called design <unk> which are likely to protect government agencies according to mr. <unk> and richard covert a lawyer with the california department of transportation which oversees the damaged bay bridge + the state is protected when plans and designs for public structures were approved ahead of time or when structures met previously approved standards says mr. covert + he believes those defenses might well apply to the bay bridge collapse + nevertheless he adds i would n't get totally shocked if we get lawsuits out of the bay bridge + if there 's going to be a race to the courthouse it has n't started yet + mr. covert had to search through law books scattered on the floor of his office yesterday and mr. belli 's <unk> was <unk> with bricks + wednesday mr. belli 's staff was n't permitted into his office by city officials worried about their safety + he said he set up shop on the sidewalk in front of his <unk> office and helped victims apply for federal aid free of charge + in a news release issued by mr. <unk> the trial lawyers association also promised free assistance to victims + the association said it would monitor the conduct of lawyers and warned that solicitation of business is <unk> + what 's in a name + apparently a lot according to the british firm of deloitte haskins & sells + the british firm has begun court proceedings in london to prevent the use of the name deloitte by deloitte haskins & sells and <unk> ross & co. in england and the rest of the world + the british deloitte firm recently withdrew from the merger of deloitte and <unk> world-wide and joined coopers & <unk> + john bullock senior partner of deloitte in the u.k. said the decision to start these proceedings has n't been taken <unk> + mr. bullock said the british firm has used the name deloitte since N + in the u.s. deloitte haskins & sells was known as haskins & sells until N when it added the deloitte name of its british affiliate + john c. burton an accounting professor at columbia university 's graduate school of business said there 's a lot of <unk> involved in the name of an accounting firm with a long history and with roots in england where accounting <unk> the u.s. + although accountants are n't noted as being deeply emotional they really hold it all in said mr. burton former chief <unk> of the securities and exchange commission + j. michael cook chairman of deloitte haskins & sells international said he believes the legal action by the british firm to be without merit + mr. cook said that last june the international executive <unk> of deloitte and <unk> agreed to a world-wide merger + the merger is proceeding according to plan except as to the withdrawal of the deloitte u.k. firm he said + partners at other accounting firms say that the deloitte firm in the u.k. is filing the suit to get even with the merged <unk> firm for keeping major <unk> work in england + general motors corp. a deloitte audit client for example has agreed to keep its annual $ N million world-wide audit and associated tax work with the merged <unk> firm to be known as deloitte & <unk> in the u.s. + in england this would mean that the british deloitte would lose revenue for its audit of gm 's <unk> unit + the <unk> of deloitte 's affiliates in britain and the netherlands to coopers & <unk> will make coopers one of the biggest accounting firms in europe <unk> <unk> peat <unk> there + although coopers has n't been <unk> by other major accounting firms for a merger it is benefiting greatly from fallout from the <unk> merger + in new york harris <unk> general counsel of coopers said coopers was aware of the litigation but he declined further comment + he also declined to comment on the name that coopers would use in england if deloitte <unk> won its litigation to keep its name + coopers uses the coopers & <unk> name world-wide + william bennett the white house <unk> director accused local officials in the washington area of blocking construction of prison facilities to house convicted drug dealers + politics has essentially put up a <unk> to finding sites for new federal prisons mr. bennett said at a news conference called to report on his emergency assistance program for the capital + without more space to <unk> convicted criminals he added we will not win the war on drugs + mr. bennett declared in april that he would make washington a test case for how the bush administration would aid cities <unk> by heavy drug trafficking and violence + the drug <unk> claimed that enforcement efforts are working here <unk> at a slower and more <unk> pace than we would like + he acknowledged however that washington 's drug-related murder rate is <unk> high + the prisons are too crowded + drugs continue to be sold openly around schools parks and housing projects + mr. bennett declined to name the area officials who he believes have <unk> plans for building more federal prisons to ease washington 's problem + but other bush administration officials have criticized maryland gov. william <unk> for blocking the use of possible sites in that state + administration officials also have said that washington mayor <unk> barry has delayed consideration of sites in the city + in a letter to mr. bennett 's office released yesterday washington 's city administrator carol thompson complained that the drug <unk> had <unk> the amount of federal drug-related assistance provided to the capital + referring to mr. bennett 's claim that the federal government would provide $ N million in emergency federal support ms. thompson wrote our analysis was unable to even come close to <unk> that figure + of his successes in washington mr. bennett stressed that existing federal prisons have taken custody of N local <unk> + he also noted that the federal drug enforcement administration has established a <unk> task force responsible since april for N <unk> and more than $ N million in seizures of drug dealers ' assets + the defense department has lent the washington u.s. attorney N prosecutors and the federal bureau of investigation has provided crime laboratory facilities and training he added + what if it happened to us + in the wake of the earthquake in california and the devastation of hurricane hugo many companies in <unk> areas are <unk> the question of <unk> + some particularly in west coast earthquake zones are <unk> off their evacuation plans checking food stocks and <unk> employees of what to do if emergency strikes + others say they feel confident that steps they 've already taken would see them through a disaster + <unk> involves more than <unk> and fire <unk> these days + some big companies have teams of in-house experts focusing on safety and business <unk> + many companies in the path of potential disaster have set up <unk> offices in safe regions hoping they can transport employees there and resume operations quickly + that means making sure that copies of vital computer software and company records are out of harm 's way + some businesses like <unk> claim that even if they became isolated in a crisis they would be able to feed and care for their people for as long as five days + <unk> has to be the <unk> of your plan says <unk> <unk> manager of corporate emergency planning at atlantic richfield co. in los angeles + if you do n't save your critical people you wo n't be able to bring up your vital business functions + although arco 's head office more than N miles from the epicenter was n't affected by this week 's tremors ms. <unk> used the occasion to distribute a <unk> memo of earthquake tips to N arco employees + you need to capitalize on these moments when you have everyone 's attention she says + it was a good reminder that we all need to prepare prior to an event + the arco memo urges employees to keep certain supplies at work such as solid shoes and heavy <unk> to clear debris + it also recommends that employees be aware of everyday office items that could be used for emergency care or shelter + among the suggestions <unk> and men 's ties could be used for <unk> while <unk> wooden shelves might aid in breaking through office walls + arco maintains an office in dallas that would take over if payroll operations in pasadena were disrupted + two months ago the company set up a <unk> number based outside california to handle <unk> from employees about when they should report back to work after an earthquake or other disaster + the arco plan takes into account such details as which aspects of business are <unk> at certain times of the year + this way depending on when a quake might strike priorities can be assigned to departments that should be brought back on line first + at hewlett-packard co. the earthquake came just as the company was reviewing its own emergency procedures + we were talking about scheduling a practice drill for november says joan tharp a spokeswoman + then we had a real one in the afternoon + the palo alto calif. computer maker scrambled to set up a special phone line to tell manufacturing and support staff to stay home wednesday + sales and service employees were asked to report to work to help bay area clients who called with computer problems + hewlett-packard also called in its systems experts to restore its own computer operations + that means we can accept orders and begin getting back to normal says ms. tharp + prompted by an earlier california earthquake as well as a fire in a los angeles office tower great western bank in the past year hired three emergency planners and spent $ N <unk> a <unk> with communications gear to serve as an emergency headquarters + although officials of the savings and loan a unit of great western financial corp. used some of their new plans and equipment during this week 's quake they still lost touch for more than N hours with N branches in the affected areas not knowing if employees were injured or <unk> were broken open + some people flat out did n't know what to do says robert g. lee vice president for emergency planning and corporate security at great western + as it turned out bank employees were n't hurt and the <unk> <unk> the <unk> + still says mr. lee we need to educate people that they need to get to a phone somehow some way to let someone know what their status is + some companies are confident that they 're prepared + occidental petroleum corp. holds regular evacuation <unk> and stocks food <unk> and <unk> drugs at <unk> in its <unk> headquarters + the company also maintains <unk> <unk> in offices and changes its <unk> supply of drinking water every three months + we feel we are doing everything we can an occidental spokesman says + walt disney co. 's <unk> in <unk> calif. stocks rescue equipment medical supplies and enough food and water to feed at least N visitors for as long as five days in the event that a <unk> <unk> the theme park + the park also has emergency centers where specially trained employees would go to coordinate evacuation and rescue plans using <unk> cellular phones and a <unk> system + the centers are complete with <unk> detailing utility lines beneath <unk> and safe <unk> where people can be assembled away from major structures + vista chemical co. with three chemical plants in and near lake charles <unk> prepares for every hurricane that enters the gulf of mexico says keith l. <unk> a company safety director + hurricane hugo an atlantic storm did n't affect vista + but two other major <unk> have threatened operations so far this year most recently hurricane jerry this week + because <unk> can change course rapidly the company sends employees home and <unk> down operations in stages the closer a storm gets the more complete the shutdown + the company does n't wait until the final hours to get ready for <unk> + there are just tons of things that have to be considered mr. <unk> says + empty tank cars will float away on you if you get a big <unk> surge + still vista officials realize they 're relatively <unk> + with a hurricane you know it 's coming + you have time to put <unk> <unk> in place notes a vista spokeswoman + a situation like san francisco is so <unk> because there 's no warning + former democratic <unk> thomas m. gaubert whose savings and loan was <unk> from his control by federal thrift regulators has been granted court permission to sue the regulators + in a ruling by the fifth u.s. circuit court of appeals in new orleans mr. gaubert received the <unk> to pursue a claim against the federal home loan bank board and the federal home loan bank of dallas for losses he suffered when the bank board closed the independent american savings association of irving texas + mr. gaubert who was chairman and the majority <unk> of independent american had <unk> his control in exchange for federal regulators ' agreement to drop their inquiry into his activities at another savings and loan + as part of the agreement mr. gaubert contributed real estate valued at $ N million to the assets of independent american + while under the control of federal regulators independent american 's net worth dropped from $ N million to a negative $ N million <unk> out the value of mr. gaubert 's real estate contribution and his stock in the institution + mr. gaubert 's suit to recover his damages was dismissed last year by u.s. district judge robert <unk> of dallas under the federal <unk> claims act which offers broad protection for actions by federal agencies and employees + earlier this week a fifth circuit appellate panel upheld judge <unk> 's dismissal of mr. gaubert 's claim as a shareholder but said the judge should reconsider mr. gaubert 's claim for the loss of his property + it may depend on whether there was an express or implied promise that the federal officials would not <unk> cause the deterioration of independent american the court wrote + mr. gaubert 's lawyer <unk> david <unk> of washington d.c. says the impact of the ruling on other cases involving thrift takeovers will depend on the degree of similarity in the facts + i do n't know if this will affect one institution or a hundred mr. <unk> says + it does establish a very clear precedent for suing the <unk> where there was none before + <unk> claims in suit that restaurant fired her because she was pregnant + in a suit filed in state court in manhattan the american civil <unk> union is representing the former <unk> 'd of the <unk> odeon restaurant + the suit which seeks <unk> and punitive damages of $ N million alleges that the <unk> of <unk> trees levine violated new york state 's human-rights law + among other things the law prohibits discrimination on the basis of sex and pregnancy + the suit alleges that ms. levine was fired after she refused to accept a lower paying less visible job upon reaching her sixth month of pregnancy + ms. levine told her employer that she was pregnant in february a month later the suit says the restaurant manager told ms. levine that she would be <unk> to his assistant because he felt customers would be uncomfortable with a pregnant <unk> 'd + <unk> moss an attorney with the <unk> 's women 's rights project said they wanted a <unk> woman and a pregnant woman is not <unk> + they told her we do n't hire fat people and we do n't hire <unk> + and pregnant women are fat + ms. moss said ms. levine <unk> taped many conversations with her bosses at the odeon in which they told her she was being fired as <unk> 'd because she was pregnant + paul h. <unk> an attorney for odeon owner keith <unk> denied the allegations + he said ms. levine had never been fired although she had stopped working at the restaurant + the odeon made a written offer to <unk> levine on july N to return to work as the <unk> 'd at the same pay same hours and with back pay accrued he said + mr. <unk> said the odeon has no policy against hiring pregnant people + lawyers in texas 's biggest <unk> case want out in face of <unk> + lawyers representing five of the seven defendants in the case say their clients can no longer afford their services + the trial of the case lasted seven months and ended in september with a hung jury + the defendants were indicted two years ago on charges that they conspired to <unk> five thrifts of more than $ N million through a complicated scheme to <unk> the price of land and <unk> construction along interstate N east of dallas + the defense lawyers three of whom are solo practitioners say they ca n't afford to put their law practices on hold for another <unk> trial + some of the lawyers say they would continue to represent their clients if the government pays their <unk> as court-appointed lawyers + assistant u.s. attorney terry hart of dallas says the government will oppose any efforts to bring in a new defense team because it would delay a <unk> + federal judge <unk> hastings of florida facing impeachment received an unanticipated boost yesterday + sen. <unk> specter r. pa urged <unk> of the judge in a brief circulated to his senate colleagues during <unk> deliberations + among other things the brief cited insufficient evidence + sen. specter was vice chairman of the impeachment trial committee that heard evidence in the hastings case last summer + a former prosecutor and member of the senate judiciary committee sen. specter is expected to exercise influence when the senate votes on the impeachment today + richmond resignations + six partners in the richmond va. firm of <unk> russell morris & butcher announced they are resigning + five of the partners james w. morris philip b. morris robert m. white ann adams webster and <unk> g. <unk> are opening a <unk> in richmond to concentrate on corporate defense litigation particularly in product liability cases + the sixth partner john h. <unk> jr. is joining <unk> & owen a smaller firm outside richmond + law firm notes + nixon <unk> <unk> & doyle based in rochester n.y. has opened an office in <unk> n.y + mayer brown & <unk> chicago added two partners to its houston office <unk> j. roger jr. and jeff c. dodd + copyright specialist neil <unk> who writes the monthly copyright law journal newsletter is joining <unk> doyle brown & <unk> + new york times co. 's third-quarter earnings report is reinforcing analysts ' belief that newspaper publishers will be facing continued poor earnings comparisons through N + the publisher was able to register soaring quarter net income because of a <unk> gain on the sale of its cable-tv system + however operating profit fell N N to $ N million + the decline reflected the expense of buying three magazines lower earnings from the forest-products group and what is proving to be a nagging major problem continued declines in advertising <unk> at the new york times the company 's flagship daily newspaper + in composite trading on the american stock exchange new york times closed at $ N a share down N cents + analysts said the company 's troubles mirror those of the industry + retail advertising which often represents half of the advertising volume at most daily newspapers largely is n't rebounding in the second half from extended doldrums as expected + at the same time newspapers are <unk> by lagging national advertising especially in its financial component + dow jones & co. recently reported net fell N N a reflection in part of continued softness in financial advertising at the wall street journal and barron 's magazine + we expect next year to be a fairly soft year in <unk> advertising said john <unk> an analyst for lynch jones & <unk> + next year earnings will hold steady but we just do n't see a big turnaround in the trend in advertising + john s. <unk> an analyst for drexel burnham lambert inc. said the times faces the same problem of other publishers <unk> is down + it will be hard to do <unk> until real <unk> starts heading back up + in the quarterly report arthur <unk> <unk> new york times co. chairman and chief executive officer said negative factors affecting third-quarter earnings will continue + analysts agreed with company expectations that operating profit will be down this year and in N + mr. <unk> said the scheduled opening of a new <unk> plant in edison n.j. in N would involve heavy <unk> and depreciation costs + with the edison plant coming on line next summer the times is facing some tough earnings comparison in the future said peter <unk> an analyst with <unk> lawrence morgan grenfell + but many newspapers are facing similar comparisons + the sale of the company 's cable franchise brought an after-tax gain of $ N million part of which will be used to reduce debt + the company also has a <unk> plan + analysts said they were impressed by the performance of the company 's newspaper group which consists of the times N regional newspapers and a one-third interest in the international herald tribune group operating profit for the quarter increased slightly to $ N million from $ N million on flat revenue + drexel burnham 's mr. <unk> pointed out that profits held up in a tough revenue environment + that 's a good sign when profits are stable during a time revenue is in the trough + investors <unk> the second anniversary of black monday with a buying spree in both stocks and bonds + but the dollar was mixed + stock and bond investors were cheered by last month 's <unk> low inflation rate + this news raised hopes for further interest-rate cuts + <unk> prices immediately rallied setting the stock market rolling from the opening bell + the dow jones industrial average up about N points in <unk> finished with a gain of N points to N + that brought the average 's cumulative gain this week to about N points + since the N crash the industrials have soared more than N N and the widely watched market barometer is about N N below its record high set earlier this month + the stock-market rally was led by blue-chip issues but unlike monday 's rebound was broadly based + indeed over-the-counter stocks led by technology issues <unk> the industrial average + the nasdaq composite index soared N or N N to N its highest one-day jump in points this year + many <unk> stocks rose after news that a group obtained financing commitments for the proposed buy-out of american medical international inc + among the biggest winners were <unk> stocks responding to heavy trading volume + the government said consumer prices rose only N N last month + economists expected twice as large an increase + that news plus recent signs of economic <unk> greatly increases pressure on the federal reserve to ease credit further which in turn would be good news for stocks investment managers say + i see a lot of evidence indicating a slower economy and that means my interest-rate outlook has a downward tilt said <unk> l. keith jr. vice chairman of prudential insurance co. of america one of the nation 's largest institutional investors + fed officials probably wo n't drive down rates immediately mr. keith said + despite the inflation news several fed officials still fear <unk> pressures will intensify because they insist the economy is stronger than generally believed + but wall street analysts expect further signs of economic weakness in government reports during the next few weeks + if so that will <unk> the case for another shot of <unk> within a month or so + that in turn is expected to persuade banks to cut their prime lending rate a benchmark rate on many corporate and consumer loans by half a percentage point to N N + we 're not out of the woods yet by any means said george r. <unk> president and chief executive of <unk> capital management co. cleveland + but the economy is slowing enough to give the federal reserve <unk> to reduce interest rates + but many individual investors are leery about stocks because of fresh signs of <unk> in the huge junk-bond market + investors also are anxious about today 's <unk> hour the monthly expiration of stock-index futures and options and options on individual stocks + this phenomenon often makes stock prices swing wildly at the end of the trading session + in major market activity stock prices surged in heavy trading + volume on the new york stock exchange rose to N million shares from N million wednesday + gaining big board issues outnumbered decliners by N to N + the dollar was mixed + in new york late yesterday it was at N yen up from N yen late wednesday + but it fell to N marks from N + tuesday 's rout of a gop congressional hopeful in a mississippi district that has n't backed a democratic presidential candidate since <unk> stevenson is another reminder that at least at the federal level political ticket splitting has been on the rise over the past half century + in only one presidential election year prior to N did more than N N of the nation 's congressional districts choose a different party 's candidate for the white house than for the house of representatives + now that percentage routinely <unk> a third and twice has been above N N + as we know voters tend to favor republicans more in races for president than in those for congress + in every presidential election over the past half century except for the <unk> presidential <unk> the gop has captured a greater percentage of the <unk> popular vote for president than it has of congressional seats or the popular vote for congress + prior to N the pattern was nearly the opposite + what accounts for the results of recent decades + a simple economic theory may provide at least a partial explanation for the split <unk> displayed by americans in the voting <unk> + the theory relies on three assumptions + N voters can buy one of two brands when they select their political agents a republican brand that believes in the <unk> state and in the <unk> of private markets over the <unk> of public action and a democratic brand that believes in big government and in public intervention to remedy the excesses <unk> to the pursuit of private interest + N congressional representatives have two basic responsibilities while voting in office dealing with national issues <unk> actions such as casting roll call votes on legislation that imposes costs <unk> <unk> benefits on the population at large and attending to local issues constituency service and pork barrel + N republican congressional representatives because of their belief in a <unk> state are less willing to engage in local benefit-seeking than are democratic members of congress + if these assumptions hold voters in races for congress face what in economic theory is called a prisoner 's dilemma and have an incentive at the margin to lean democratic + if they put a republican into office not only will they acquire less in terms of local benefits but their selected legislator will be relatively <unk> to prevent other legislators from bringing home the <unk> to their respective <unk> + each legislator after all is only one out of N when it comes to national policy making + in races for the white house a voter 's incentive at the margin is to lean republican + although a gop president may limit local benefits to the voter 's particular <unk> such a president is also likely to be more effective at preventing other <unk> and their legislators from bringing home the local benefits + the individual voter 's standing consequently will be enhanced through lower taxes + while this theory is <unk> simple it appears to explain several things + first why ticket splitting has increased and taken the <unk> pattern that it has over the past half century prior to the election of franklin <unk> as president and the advent of the new deal government occupied a much smaller role in society and the prisoner 's dilemma problem <unk> voters in races for congress was considerably less severe + second it explains why voters hold congress in <unk> but generally love their own congressional representatives any individual legislator 's constituents appreciate the specific benefits that the legislator wins for them but not the overall cost associated with every other legislator doing likewise for his own constituency + third the theory suggests why legislators who pay too much attention to national policy making relative to local benefit-seeking have lower security in office + for example <unk> members of the house once the most vulnerable of <unk> have become virtually immune to defeat + the one exception to this recent trend was the defeat of N of the N freshman republicans brought into office in N by the reagan revolution and running for re-election in N + because these <unk> placed far more emphasis on their <unk> role spreading the reagan revolution in national policy making they were more vulnerable to defeat + fourth the theory indicates why the republican party may have a difficult time attracting viable candidates for congressional office + potential candidates may be discouraged from running less by the congressional salary than by the prospect of defeat at the hands of a democratic opponent + to the extent that potential republican candidates and their financial backers realize that the congressional prisoner 's dilemma game works to their disadvantage the republican party will be <unk> in its attempts to field a competitive slate of congressional candidates + fifth the theory may provide at least a partial reason for why ticket splitting has been particularly <unk> in the south + to the extent that democratic legislators from the south have held a disproportionate share of power in congress since N and have been able to translate such clout into relatively more local benefits for their respective <unk> voters in the south have had an especially strong incentive to keep such democrats in office + finally the theory suggests why republicans generally have fared better in senate races than in campaigns for the house + since local benefit-seeking matters more and national policy making matters less in the lower chamber of congress this is precisely the pattern one would expect if republicans are less willing to engage in local benefit-seeking than their democratic counterparts + is there any <unk> support for this theory + three pieces of evidence <unk> the key assumption that democratic legislators are more willing to engage in local benefit-seeking than their republican colleagues + first economists james bennett and thomas <unk> find that gop senators turn back roughly N N more of their allocated personal staff budgets than democrats do + to the extent that the primary duty of personal staff involves local benefit-seeking this indicates that political philosophy leads congressional republicans to pay less attention to narrow <unk> concerns + second if the key assumption is valid democrats should have lower attendance rates on <unk> votes than republicans do to the extent that such votes reflect national policy making and that participating in such votes takes away from the time a legislator could otherwise devote to local benefit-seeking + this is indeed what the data indicate particularly in the case of the house + the democratic house attendance rate has not exceeded the republican house attendance rate since N + finally as shown in the table democrats <unk> a higher proportion of their personal staffs to district offices where local benefit-seeking duties matter more and national policy making activities matter less relative to washington offices + an examination of changes in personal <unk> decisions in the senate between N and N when control of that body changed party hands moreover reveals that the personal <unk> differences noted in the table can not be attributed to the disproportionate control democrats exercise due to their <unk> status over other resources such as committee staff + an additional piece of evidence from the senate holding other factors constant such as <unk> advantages and regional factors the difference between popular votes for republican presidential and <unk> candidates in states conducting a senate election turns out to be a positive function of how onerous the federal government 's tax burden is per state a <unk> tax rate hits <unk> states harder + put more simply gop candidates for president are looked on more <unk> by voters than republican candidates for the senate when the prisoner 's dilemma is more severe + moreover ticket splitting appears to take the same <unk> pattern at the state government level as it does at the federal level + state government is more typically split along <unk> lines than the reverse + a <unk> <unk> investigation furthermore reveals that holding other factors constant the difference between a state 's <unk> vote going to the republican gubernatorial candidate and the republican share of the lower state house is a positive function of the state tax rate + in sum at both the federal and state government levels at least part of the seemingly <unk> behavior voters display in the voting <unk> may have an <unk> rational explanation + mr. <unk> teaches at the university of southern california 's business school + a house-senate conference approved a nearly $ N billion state justice and commerce department bill that makes federal <unk> for <unk> held in world war ii <unk> camps a legal <unk> after next oct. N + the measure provides no money for the promised payments until then but beginning in fiscal N the government would be committed to meeting annual payments of as much as $ N million until the total liability of approximately $ N billion is paid + the action <unk> earlier efforts to find offsetting cuts to fund the payments but is widely seen as a more realistic means of <unk> <unk> first authorized in N + the action came as congress sent to president bush a fiscal N bill providing an estimated $ N billion for the departments of labor education health and human services + final approval was on a N roll call in the senate which sets the stage for a veto confrontation with mr. bush over the issue of publicly financed abortions for poor women + <unk> an <unk> federal policy the measure supports medicaid abortions in cases of rape and incest but mr. bush has so far refused to support any specific exemption beyond <unk> in which the mother 's life is in danger + mr. bush 's veto power puts him a commanding position in the narrowly divided house but a vote to override his position could well pick up new support because of the wealth of health and education programs financed in the underlying bill + the measure before the conference yesterday funds the departments of state justice and commerce through fiscal N + an estimated $ N billion is provided for next year 's census and negotiators stripped a <unk> rider seeking to block the counting of illegal aliens + elsewhere in the commerce department nearly $ N million is <unk> for assistance programs under the economic development administration + and in a <unk> to the fall of house speaker james wright this year the conference voted to <unk> $ N million in <unk> <unk> funds for a fort worth texas <unk> project that figured in ethics charges against the former democratic leader + fiscal pressures also forced the adoption of new fees charged by federal agencies and an N N increase in the securities and exchange commission 's budget would be financed entirely by an added $ N million in filing fees + in an unprecedented step the measure anticipates another $ N million in receipts by having the federal bureau of investigation charge for <unk> services in civil cases a change that is almost certain to increase pentagon costs in processing personnel and security <unk> + the bill does n't include an estimated $ N billion in supplemental anti-drug funds for justice department and law-enforcement accounts that are still in conference with the house + but yesterday 's agreement would make it easier for state governments to handle the promised aid by deferring for one year a scheduled N N increase in the required state matching funds for law-enforcement grants + similarly the measure <unk> the current funding formula to promise smaller states such as new hampshire and delaware a minimum allocation of $ N million each in drug grants or three times the current minimum + the odd mix of departments in the bill makes it one of the more <unk> of the annual appropriations measures and the <unk> provisions attached by lawmakers run from $ N million for a fish farm in arkansas to a music festival in moscow under the united states information agency + lawmakers scrapped all of a $ N million state department request for the N <unk> in <unk> spain but agreed elsewhere to $ N for an oil portrait of former chief justice warren burger + senate commerce committee chairman ernest <unk> d. s.c. who also chairs the senate appropriations subcommittee for the department attached $ N million for an advanced technology initiative including work on high-definition television + his republican counterpart sen. warren <unk> r. n.h. has used his position to wage a legislative war with the conservative board of the legal services corp + an estimated $ N million is provided to maintain the program but mr. <unk> also succeeded in <unk> language seeking to curb the authority of the current board until new members are confirmed + the effective date of any new regulations by the current board would be delayed until oct. N next year and the bill seeks to reverse efforts by the corporation to cut off funds to service organizations such as the food research and action center + the bill also provides $ N million to meet u.s. contributions to international organizations and $ N million for <unk> activities + both accounts reflect significant increases from fiscal N although the amount for <unk> shows a N N cut from the administration 's request + mercury savings & loan association said it retained merrill lynch capital markets as its lead investment banker to advise it regarding a possible sale or other combination of the <unk> beach calif. thrift + mercury which has assets of more than $ N billion and N branches in california said the action to improve its regulatory capital position is related directly to new capital requirements mandated by recently adopted federal legislation + mercury also said it extended its two-year advisory relationship with montgomery securities of san francisco + mercury 's stock closed yesterday at $ N unchanged in composite trading on the new york stock exchange + watching congress sweat and <unk> through its annual budget <unk> fighting the urge to spend more we 're reminded of those <unk> movies in which the <unk> serial killer turns himself in to police and says stop me before i kill again + the members know they 're doing wrong but they need help to restrain their <unk> <unk> + arkansas democrat david <unk> <unk> his <unk> on the senate floor the other day after he 'd joined the finance committee 's <unk> pork-barrel <unk> i must tell you + i come to the floor tonight as one who ended up with a <unk> of <unk> matter + it was nothing more or nothing less than a feeding frenzy + he was turning himself in + frankly as i was walking back to get in my car i heard many many people opening champagne bottles and celebrating individual victories that some of us had accomplished in getting our little deal in the tax bill and <unk> at this person for slipping this in he said + as i was driving home i did not feel very good about myself + we can <unk> mr. <unk> 's moment of <unk> even as we understand that he and his <unk> need restraint <unk> they kill again + a good place to start the rehabilitation is a legislative line-item veto bill now being offered by indiana senator dan coats + the coats bill which already has N senate <unk> is n't a pure line-item veto because it would apply only to spending bills + instead it 's a form of enhanced <unk> giving a president a chance to <unk> or strike specific spending items that just go too far + under the proposal a president would have a chance twice each year to return a package of <unk> to the hill once when he proposes his budget and again after congress <unk> + congress would have N days to reject the package with a N N majority but then a president could veto that rejection + congress would then need the usual two-thirds majority to override any veto + the proposal would restore some discipline erased from the budget process by the N budget reform act + before N a president could <unk> or refuse to spend funds appropriated by congress + presidents kennedy and johnson were both big users of the <unk> power but congress saw its chance against a weakened president nixon and stripped it away + today a president can still send up spending <unk> but they 're <unk> unless congress has a guilty <unk> and changes its mind + this is like asking <unk> to feel <unk> about <unk> and naturally <unk> are almost never approved + in N president reagan sent N <unk> back to the hill but only N N of the spending total was approved by congress + senator coats 's proposal would let the proposed spending cuts take place automatically unless congress acts + the members could still try to serve their constituents with special-interest <unk> but the police in the form of a president would be there with a <unk> if they really get crazy as they do now + mr. coats plans to offer his proposal as an amendment to a bill to raise the federal debt limit before the end of the month + president bush has endorsed the idea and at least N sitting senators have voted to support enhanced <unk> authority in the past + we 're told senator <unk> is n't yet a <unk> but if he and his colleagues are serious about <unk> their <unk> they 'll sign up + business and civic operations <unk> back toward <unk> here as congressional officials estimated that the price tag for emergency assistance to <unk> california would total at least $ N billion + that is a minimum figure and i underscore minimum said house speaker thomas foley d. wash after <unk> with california lawmakers + it 's impossible to put an exact figure on it at this time + the office of management and budget has begun looking into legislation to provide more funds for earthquake repairs + and california 's <unk> delegation in the house is expected to propose that emergency funds be added to a <unk> spending bill that the house appropriations committee is to consider monday + for the most part major corporations ' headquarters and plants were <unk> or only slightly damaged by tuesday 's earthquake which registered N on the richter scale + one of the last big employers in the silicon valley to report in seagate technology said it expects to be back at full strength monday + the day before the quake seagate completed three days of emergency training and <unk> + <unk> the response of almost all big corporations in the bay area don <unk> seagate 's chief financial officer said i would n't expect this to have any significant financial impact + the city 's recovery from the earthquake was <unk> + banks indicated they were operating at greater than N N of their usual capacity but a <unk> hill hotel said tourists had fled leaving the previously full hotel with an N N vacancy rate + city crews <unk> the <unk> to buildings but lacked a clear sense of how <unk> transportation arteries were disabled + among the city 's banks bank of america said all but eight of its N branches were open + the closed branches in san francisco <unk> santa clara and santa cruz sustained structural damage + power failures kept just seven of its N <unk> machines <unk> + <unk> operations were moved to bank of america 's concord office and foreign-exchange trading operations were shifted to los angeles the bank said + wells fargo & co. said its emergency operations committee which met all night tuesday moved its <unk> transfer system to el monte calif. N miles to the south + only five of N branches statewide remain closed while N of N <unk> machines remained out of order + the most extensive damage was in small towns near the quake 's epicenter N miles south of san francisco + santa cruz county estimates total damage at nearly $ N million + santa clara county has a running total so far of $ N million excluding the <unk> city of los <unk> + oakland officials were still uncertain about the magnitude of structural damage late yesterday a section of <unk> a <unk> highway collapsed in oakland causing a majority of the deaths resulting from the quake + san francisco mayor art agnos estimated that damages to the city total $ N billion + that includes <unk> in the <unk> marina district that must be <unk> <unk> business <unk> south of market street and houses in the city 's outer richmond district that were <unk> off their foundations + many streets and <unk> <unk> and <unk> water <unk> and service connections <unk> + the federal funds would go to a range of programs including the federal emergency management agency highway construction accounts and the small business administration according to rep. <unk> fazio d. calif + fema which <unk> federal disaster relief is already strapped by the costs of cleaning up after hurricane hugo which hit the carolinas last month + it is likely to get as much as $ N million initially in additional funds and eventually could get more than $ N billion according to mr. fazio a member of the house appropriations committee + white house spokesman marlin fitzwater said there is enough money on hand to deal with immediate requirements + the bush administration has at its disposal $ N million in funds remaining from the $ N billion congress released for the cleanup after hurricane hugo + we feel we have the money necessary to handle the immediate short-term requirements mr. fitzwater said + he added that the office of management and budget the transportation department and other agencies are developing longer-term legislation that should be ready soon + much of the cost of cleaning up after the earthquake will involve <unk> highways and bridges + california lawmakers are seeking changes in rules governing the federal highway relief program so more money can be made available for the state + some things ca n't be repaired + the asian art museum in golden gate park reports $ N million to $ N million in damage including shattered <unk> and stone figures + its neighbor the de young museum totaled $ N million to $ N million in structural damage and shattered <unk> + the city 's main library is closed because of <unk> that opened in its walls and marble <unk> and <unk> <unk> at the <unk> arts city hall broke off in the temblor + the ground along the <unk> the street that <unk> the city 's eastern <unk> and <unk> dropped six inches after the quake <unk> major damage to at least one of the <unk> + at san francisco international airport shock waves <unk> the control tower knocking down computers and <unk> glass + offices of the city 's rent board were destroyed + mayor agnos 's $ N billion estimate does n't include damage to freeway arteries leading into the city some of which remained closed + a major chunk of the $ N billion is expected to be <unk> up by overtime for city workers deployed in the emergency said a spokesman for mr. agnos + all of the city 's $ N million emergency reserve was spent in the first N hours on overtime salaries he said + insurers struggled to to get a firm grasp on the volume of claims pouring into their offices + at fireman 's fund corp. a spokesman said N claims were received in the first N hours after the quake and the company is <unk> for as many as N claims from its N residential and N business policyholders in the affected area + claims range from a <unk> <unk> and there were an awful lot of cars damaged in this to a major processing plant a spokesman said + we 're delivering a check for $ N to an automotive business in berkeley that burned on tuesday + fireman 's is part of a $ N million syndicate that supplies business <unk> insurance to the city on the bay bridge which must pay employees during the three weeks or more it is expected to be out of service and deprived of toll income + california lawmakers want to eliminate temporarily a $ N million cap on the amount of federal highway relief for each state for each disaster as well as a prohibition on using the emergency highway aid to repair toll roads + in addition under the <unk> program the federal government provides N N of emergency highway aid for only the first N days of a repair effort + after that the federal share <unk> + for interstate highways the federal share normally would drop to N N of the cost of repairs and the state would have to pick up the remainder of the cost + but lawmakers want to extend the period for N N federal funding for several months + those changes also would apply to two areas hit hard by hurricane hugo south carolina and the u.s. virgin islands according to an aide to rep. fazio + meanwhile the fema announced a <unk> telephone number N to <unk> service to victims of the earthquake + lines will be available N hours a day to take applications for such disaster relief as temporary housing and emergency home repairs by phone + transportation officials are expecting <unk> traffic <unk> beginning monday and growing worse over the next several weeks + some N cars normally cross the closed bay bridge between oakland and san francisco daily + officials say it is clear that <unk> routes ca n't handle the <unk> + the state is calling in a <unk> of navy landing vessels and other <unk> to expand ferry service across the bay and hopes to add numerous new bus routes and train departures to help alleviate the traffic problem + moreover state officials are urging freight <unk> to <unk> many of the area 's main highways and to travel late at night or during <unk> hours + even so we 're looking for chaos said george gray a deputy district director at the california department of transportation + if there 's any way you can do it you ought to go to idaho and go fishing for a while + most of san francisco 's tourists and business travelers already have left despite hotel 's offers of rate cuts + everyone left said peter lang reservations manager of the mark hopkins hotel + the <unk> st. francis hotel which survived the N earthquake and fire currently is less than N N occupied + we still have our <unk> baseball fans a spokesman said + one lady from new york said she 's not going home until the world series is over + gerald f. <unk> and joe <unk> in washington contributed to this article + is an american secretary of state seriously suggesting that the khmer rouge should help govern cambodia + apparently so + there are no easy choices in cambodia but we ca n't imagine that it benefits the u.s. to become the catalyst for an <unk> process that could end in another round of <unk> in cambodia + now that vietnam appears to have pulled out its <unk> army the state department is talking again about accepting an interim coalition government in the <unk> capital of <unk> <unk> + the coalition would include the current <unk> <unk> sen regime the two <unk> resistance groups led by son <unk> and prince <unk> and the khmer rouge + the aim would be to end the guerrilla war for control of cambodia by allowing the khmer rouge a small share of power + the state department says that any khmer rouge participation would have to be minimal + the usual problem with including communists in interim coalition governments is that their <unk> and methods require they squeeze out everyone else + recall that nicaragua 's sandinistas came into managua as partners in a coalition government with <unk> <unk> + within two years the <unk> were <unk> or in prison nicaragua had gone communist and the sandinistas were building one of the biggest <unk> in latin america and threatening their neighbors + in <unk> when the western powers bowed to pressure for such a coalition it turned out they were opening the door to communist domination + even <unk> <unk> 's china began in N with a partnership between the communists and a number of smaller <unk> parties + what <unk> the scene in cambodia is that the current regime is already communist as are its vietnamese <unk> back in <unk> as are the khmer rouge who are the strongest of the three guerrilla groups + it 's not clear which crew of communists might prevail in a coalition government but the one good bet is that the <unk> would disappear + that would leave <unk> sen and the khmer rouge + the <unk> sen regime has sent thousands of <unk> <unk> to die of <unk> and <unk> while building cambodia 's equivalent of the berlin wall near the <unk> border + the khmer rouge however carry an <unk> record for <unk> <unk> + these <unk> caused the deaths by <unk> disease or execution of well over one million <unk> + the <unk> <unk> was so bad that the vietnamese <unk> in N was a <unk> form of relief + the world might want to believe that the khmer rouge ca n't still be such bad guys just as in the late 1970s it was reluctant to credit the reports of <unk> then taking place + but there is no solid evidence that the khmer rouge have changed + some of our sources in thailand say the notorious old khmer rouge leader <unk> pot has been <unk> up this summer in khmer rouge camps near the <unk> border + so it 's difficult to <unk> the notion that mr. baker is willing to accept conditions that would help the khmer rouge set up shop again in <unk> <unk> + true prince <unk> backs the idea of such a coalition at least for this week + but prince <unk> has backed all sorts of ideas over the years and done rather better by himself than by cambodia + nor should the u.s. worry much about <unk> china which still aids the khmer rouge + it 's time the state department recognized that china does not play by <unk> 's rules + for the u.s. to lend even the <unk> support to the most <unk> <unk> on <unk> 's bleak scene could only <unk> america 's allies elsewhere + it would be entirely rational for communist <unk> in countries such as the philippines or peru to conclude the following fight <unk> enough and the u.s. under the <unk> of <unk> might eventually help negotiate your way to victory + u.s. <unk> has done it before and it will likely do it again + the administration and congress have lately <unk> around the idea of sending military aid to cambodia 's <unk> + but now the possibility of diplomatic movement vietnam 's withdrawal the baker initiative has put that plan on hold with the <unk> that if the going got rough the u.s. would then <unk> the opposition + why the <unk> + at the very least the odds are heavily weighted against the prospects of preventing the khmer rouge and cambodia 's communists from ultimately moving against their opponents + when that day comes it would be particularly awful to know that the united states sat on military aid and deprived these people of the means to settle their fate with at least a little honor + michael f. harris N was named executive vice president north america for the financial times the business newspaper published by this company that also has interests in book publishing fine china oil services and investment banking + mr. harris had been vice president for the newspaper 's advertising in new york + he takes additional responsibility for newspaper sales and distribution of the financial times in north america + <unk> v. allen N who had been director for north america resigned to pursue other business interests and do some consulting + <unk> data products inc. posted a net loss of $ N million or N cents a share for its fiscal first quarter compared with net income of $ N million or N cents a share a year ago + revenue for the quarter ended sept. N fell N N to $ N million from $ N million in the year-earlier period + <unk> data a san diego maker of magnetic tape peripherals and optical <unk> drives said the loss included reserves of $ N million related to a corporate restructuring + the restructuring calls for a N N reduction in its work force over the next two months affecting about N jobs <unk> data said + it is eliminating the positions of president and chief operating officer formerly held by edward l. <unk> + <unk> data said mr. <unk> consequently has resigned from those posts and from the company 's board + mr. <unk> could n't immediately be reached for comment + <unk> corp. costa mesa calif. said it expects to report a third-quarter loss of about $ N million or N cents a share because of a $ N million reserve to be taken against potential losses on a contract with the state of california + revenue is estimated at $ N million + the maker of document image processing equipment said the state procurement division had declared <unk> in default on its contract with the secretary of state uniform commercial code division + <unk> said it does n't believe the state has a valid basis of default and is reviewing its legal rights under the contract but said it ca n't predict the outcome of the dispute + the disagreement centers on testing deadlines and other issues involving a <unk> system installed earlier this year + state officials could n't be reached for comment late yesterday + <unk> noted that it had cash and <unk> securities totaling $ N million on sept. N and stockholders ' equity is $ N million + the company made the announcement after the close of the markets where its stock finished at $ N up N cents in over-the-counter trading + clinton gas systems inc. said it received a contract from <unk> co. canton ohio to manage the natural gas purchasing scheduling and transportation activities for <unk> 's seven ohio and two pennsylvania plants + clinton and <unk> agreed not to disclose the value of the contract + <unk> a producer of bearings and specialty steel already buys gas from clinton + clinton said in columbus ohio that its clinton gas marketing unit wants to line up a number of such gas management contracts + manufacturers frequently do n't have anyone who is a specialist in natural gas clinton said and a specialist such as clinton can save them substantial amounts of money + the scene opens with <unk> executives <unk> obviously <unk> to cellular phones and <unk> it out of town in <unk> <unk> + the <unk> <unk> the <unk> with a texas <unk> have packed their bags and went + but he continues they 're <unk> we 're all texans + the lone star is on the rise again + as the music <unk> viewers discover they 're watching a commercial for lone star beer the pride of texas a product of g. <unk> brewing co. a la <unk> wis. unit of bond corp + as the ad 's tone implies the texas spirit is pretty <unk> these days and lone star is n't alone in trying to take advantage of that + from chevy trucks to lipton <unk> tea to a host of <unk> banks the state has been <unk> with broadcast commercials and print advertising campaigns celebrating texans and <unk> outsiders + while advertisers have long appealed to texans ' state pride and <unk> the latest trend has been sparked in part by the state 's recent hard economic times + that has taken some of the <unk> out of <unk> who like to <unk> that texas is the only state that was once a nation but it has increased their legendary <unk> of outsiders + in the past writes houston <unk> columnist jim <unk> <unk> were accepted only after passing a series of tests to prove they had the right texas attitudes and of course they had to be dipped for <unk> + there is no small irony in the fact that some of the <unk> advertising comes <unk> of you <unk> it outsiders + lone star 's bond corp. parent for instance <unk> from <unk> australia + north <unk> new <unk> californians <unk> and <unk> own texas banks + all kinds of landmark texas real estate has been snapped up by <unk> + even the <unk> dallas cowboys were bought by an arkansas oil man + texas has lost its <unk> leaving texans with a <unk> to feel proud about themselves says stephen <unk> a <unk> professor at rice university houston + this plays right into the hands of the advertising agencies + for example the <unk> radio campaign for thomas j. lipton co. an <unk> <unk> n.j. unit of <unk> unilever group <unk> <unk> real texans do not wear <unk> ever + real texans do n't play <unk> at least i hope not + this is football country + and another thing real texans drink lipton <unk> tea + in developing that theme at interpublic group of <unk> <unk> new york unit account supervisor <unk> <unk> says she made a couple of phone calls to dallas ad friends and reported her findings to a team of writers + her findings + you know she says <unk> stuff like <unk> cowboys and football + not exactly sophisticated market research but who <unk> as long as the campaigns work + and ad agencies insist that they do + <unk> <unk> of <unk> group inc. dallas tells of the <unk> who saw the agency 's <unk> commercial for first <unk> bank <unk> complete with the state 's <unk> and promptly invested $ N in the thrift 's cds + never mind that first <unk> is one of the failed texas thrifts taken over by outsiders in this case an investor group headed by new york financier ronald <unk> + the north texas chevy dealers recently had a record sales month after the debut of ad campaign that <unk> its nose at elite <unk> + and deposits at ncnb texas national bank a unit of ncnb corp. charlotte n.c. have increased $ N billion since last year after heavy advertising stressing commitment to texas + obviously pride sells in texas says a spokeswoman for bozell inc. omaha neb. which represents + the ad campaigns usually follow one of three tracks stressing the company 's <unk> pointing out the competition 's lack <unk> or trying to be more <unk> than texans + ford trucks may <unk> chevy trucks in places like connecticut and long island <unk> a commercial for chevrolet a division of general motors corp + the commercial created by <unk> <unk> & <unk> inc. of dallas adds <unk> i bet it takes a real tough truck to haul your ivy league <unk> to the <unk> club + because they want a truck that is texas tough the commercial concludes texans drive chevy + j.c. penney co. which <unk> from new york to suburban dallas two years ago gently <unk> itself in texas pride through a <unk> magazine ad taking the <unk> view to <unk> what is of value to future generations is part of the lone star <unk> the ad reads + it 's part of our style too + according to several <unk> sources newcomers to the texas banking market are spending a combined $ N million this year to woo texans + meanwhile surviving texas banking institutions are <unk> pitching themselves as the only lenders who truly care about the state + the <unk> <unk> sentiment among bankers comes from the independent bankers association of texas although it 's hard to tell from <unk> of the $ N million the i 's of texas tv campaign + commercials will highlight <unk> scenes of texas and <unk> <unk> music + supporting banks will sign a texas declaration of <unk> + but in <unk> material for the campaign the trade group urges members to arm for a revolution against big <unk> bank-holding companies + a video sent to association members featuring shots of the <unk> cowboys <unk> and a <unk> of sam houston does n't <unk> words + texans can <unk> a phony a mile away the <unk> warns outsiders + so do n't come and try to con us with a <unk> <unk> or a <unk> hat + young & rubicam 's pact + young & rubicam fighting charges that it <unk> <unk> officials to win the jamaica tourist board ad account in N said it will no longer create the tourist board 's advertising + in a statement alex <unk> young & rubicam 's chairman said under the present circumstances we have agreed that it is prudent to <unk> that contract + young & rubicam has pleaded innocent to the charges + the board would n't comment on its impending search for a new ad agency to handle its estimated $ N million to $ N million account + ad notes + new account + <unk> biscuits inc. <unk> n.j. awarded its estimated $ N million account to <unk> & <unk> new york + the account had been at della femina mcnamee wcrs new york + media policy + <unk> <unk> & klein a small new york shop is asking magazine ad representatives to tell it when major advertising <unk> will run in their publications + it says it may pull its clients ' ads from those magazines + coke ads + coca-cola co. said it produced a new version of its N i 'd like to teach the world to <unk> commercial + the ad is part of classic coke 's N ad campaign with the tag line ca n't beat the real thing + basketball star michael jordan and singer <unk> <unk> have also agreed to appear in ads + dell computer corp. squeezed by price pressure from its larger competitors and delays in its new product line said its per-share earnings for fiscal N will be half its previous forecasts + although the personal computer maker said it expects revenue to meet or exceed previous projections of $ N million for the year ending jan. N N earnings are expected to be N cents to N cents a share down from previous estimates of N cents to N cents + earnings for fiscal N were $ N million or N cents a share on sales of $ N million + results for the third quarter ending oct. N are expected to be released the third week of november according to michael dell chairman and chief executive officer + mr. dell said he does n't expect a loss in either the third or fourth quarter but said third-quarter earnings could be as low as four cents a share + in the third quarter last year dell had net income of $ N million or N cents a share on sales of $ N million + mr. dell attributed the earnings slide to new product delays such as a laptop scheduled for september that wo n't be introduced until early november + some delays have been caused by a shortage of <unk> notably intel corp. 's newest chip the N but others apparently have been caused by dell 's explosive growth and <unk> stretched resources + they 've got a lot of different balls in the air at the same time observes jim <unk> a computer securities analyst with dallas-based william k. <unk> & co + mr. dell meanwhile concedes the company was definitely too optimistic in its expectations + product delays however have left dell <unk> by <unk> competition in its bread-and-butter line of desktop computers as powerhouse competitors compaq computer corp. and international business machines corp. price their pcs more aggressively + the result has been <unk> margins which have been further eroded by an ambitious research and development effort and rapid overseas expansion + analyst james weil of the <unk> financial group believes dell 's response has been to place increased emphasis on product quality in an effort to rise above some of that price pressure + but that has been the key to compaq 's success he adds <unk> dell <unk> out its market niche as a direct seller of low-cost but <unk> computers and it might be too late in the game for a shift in strategy + in national over-the-counter trading dell closed yesterday at $ N a share down N cents + transatlantic holdings plc a <unk> south <unk> financial services investment group and france 's societe <unk> union des assurances de paris reached an accord effectively reducing chances of an unfriendly takeover for sun life assurance society plc + in a joint statement the two companies whose combined holdings equal N N of sun life 's ordinary shares said their agreement is aimed at reducing the uncertainty and <unk> for sun life that has resulted from two major shareholders owning a controlling interest in the company + transatlantic whose <unk> investments ltd. unit owns the largest minority stake in sun life has agreed not to make a takeover bid for the british life insurer without the prior consent of the french company known as <unk> + in return the agreement would force <unk> to buy transatlantic 's N N holding in sun life or sell its N N stake to transatlantic at a price set by transatlantic + pride petroleum services inc. said it agreed to buy <unk> assets of two companies and expects to report higher third-quarter revenue and earnings + in the year-earlier quarter the <unk> contractor had net income of $ N or N cents a share on revenue of about $ N million + results for the earlier quarter included a $ N restructuring charge + separately the houston concern said it signed letters of intent for the cash and stock purchases of a total of N <unk> <unk> from two concerns located in new mexico and california + it did n't disclose <unk> but said it expects to complete the purchases by nov. N + <unk> ltd. new york reported third-quarter net income edged up as growth in its <unk> services sector offset a decline in interest income + the lower interest income occurred because <unk> spent $ N billion buying back its stock last year + net for the <unk> services and electronic measurements and systems concern rose to $ N million or N cents a share from $ N million or N cents a share a year earlier + per-share earnings advanced N N because of the buy-back + revenue declined N N to $ N billion from $ N billion + but excluding businesses acquired or sold revenue was flat at about $ N billion + nine-month net fell N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + revenue dropped N N to $ N billion from $ N billion + this year 's nine-month results include gains of $ N million or five cents a share from the sale of <unk> 's defense systems business and $ N million or nine cents a share from an award by the <unk> claims <unk> + the year-earlier nine months include a gain of $ N million or N cents a share from sale of the company 's electricity control & <unk> division + new england critical care inc. offered $ N million in convertible subordinated debentures through morgan stanley & co. and prudential-bache capital funding + the debentures due in N have a coupon of N N N payable <unk> + the debentures may be converted into common stock of the <unk> mass. home health care concern at $ N a share + proceeds will be used for working capital and general corporate purposes including expansion of the company 's operations + the french building group <unk> s.a. said profit jumped N N in the first half of N partly on the strength of nonrecurring gains from a share issue by its canadian unit + <unk> said group profit after payments to minority interests rose to N million francs $ N million from N million a year earlier + revenue rose N N to N billion francs from N billion + the group noted that N million francs of the advance reflected a one-time gain from the june offering by its united <unk> unit in canada + it did n't say if its year-earlier results were influenced significantly by nonrecurring elements + for all of N <unk> had group profit of N million francs after payment to minority interests + revenue was N billion francs + the group has n't forecast full-year earnings for N although it said that its first-half results are n't a good indication because of one-time elements and the seasonal nature of its operations + tuesday 's earthquake will depress local real-estate values in the short term and force companies to reconsider expanding in or <unk> to the bay area and california real-estate and relocation specialists said + few specialists said they expect the quake to have much of an effect on most california property values + but real-estate experts and brokers said the quake undoubtedly will drag down prices in neighborhoods built on less stable ground especially in the bay area + california prices were already coming down + this is n't going to help said kenneth t. rosen chairman of the center for real estate and urban economics at the university of california at berkeley + state housing prices at a median $ N have declined in recent months because of potential buyers ' inability to afford homes + mr. rosen among others suggested that the quake the strongest since the N temblor that struck san francisco will in the short term create a two-tier price system for <unk> communities with <unk> built on <unk> ground likely to demand higher prices + one san francisco neighborhood likely to test mr. rosen 's theory soon is the city 's fashionable marina district which boasts some of the highest home prices in the state + the district built on landfill suffered heavy quake damage including collapsed buildings + yesterday the city <unk> two <unk> in the district because of severe structural damage and said as many as N of the district 's N <unk> might have to be <unk> + brokers agreed with the two-tier price theory + my gut feeling is that the marina properties will be affected said grace <unk> senior vice president at <unk> & ellis residential brokerage inc + neither she nor other real-estate executives and brokers could project how much less marina properties might bring but she said the two-tier price structure would affect prices for a while + mr. rosen said the quake will revive consumer interest in a <unk> N state law that requires brokers to disclose to potential buyers how close a property sits to a fault line + because of the size of the california market few relocation specialists expect a widespread corporate flight in the quake 's aftermath + but they said the quake will force some companies to <unk> or expand part or all of their operations outside the state + what you 're going to get is we do n't want to put all of our eggs in one basket theory said james h. <unk> president of location management services inc. a palo alto calif. relocation concern + mr. <unk> among others said the quake will <unk> companies in certain industries like semiconductors computers and aerospace to consider moving operations that involve particularly sensitive machinery to locations outside california + because of the quake threat some firms have <unk> what the cost is to shore up their buildings and compared it with the cost of building it <unk> he said + one southern california aerospace firm for example two months ago asked location management to compare the costs of reinforcing its current building against earthquakes with the cost of building a new structure elsewhere + a new <unk> would cost $ N million location management found compared with $ N million to make the present building <unk> + the company mr. <unk> said has n't yet determined what to do + nationwide health properties pasadena calif. said it would n't pay its fourth-quarter dividend despite a N N increase in third-quarter earnings to $ N million or N cents a share + net income included a gain of $ N on asset sales the real estate investment trust said + a year earlier nationwide health earned $ N million or N cents a share + revenue rose N N to $ N million from $ N million + nationwide health said that although it has the cash to cover the <unk> dividend its banks have denied the company 's request to pay it because the trust has n't met certain terms + nationwide health said it has numerous financing activities under way to remedy the problem and will make up the dividend payment later if possible + <unk> rey s.a. a french paper producer said it concluded an agreement with japan 's fuji photo film co. that will allow <unk> rey to manufacture and sell <unk> paper using fuji technology + <unk> rey is a leading french maker of copying and electronic printing paper + <unk> paper is used in facsimile machines + terms of the agreement were n't disclosed + <unk> rey 's move follows similar <unk> agreements between japanese producers of <unk> paper and european paper groups + <unk> grace & co. new york said its earnings for the third quarter nearly doubled as a result of a $ N million <unk> gain from restructuring its energy operations and other adjustments + net income rose to $ N million or $ N a share from $ N million or N cents a share a year earlier + sales increased N N to $ N billion from $ N billion + the gain resulted from the sale of grace equipment co. the initial public offering of a <unk> interest in grace energy corp. and an adjustment in the carrying value of certain natural resource assets not part of grace energy + the international specialty chemical company 's earnings were hurt by an <unk> for <unk> rights that reflected a N N increase in the stock price and higher interest expenses + <unk> american corp. of south africa ltd. said the third-quarter combined profit of its six gold mines dropped N N from the previous quarter + total net income fell to N million rand $ N million from N million rand in the june quarter + total gold production by all six mines rose N N to N <unk> from N <unk> in the previous quarter + doman industries ltd. said it increased its stake in western forest products ltd. to N N from N N through a <unk> transaction valued at N million canadian dollars $ <unk> million + doman is based in <unk> british columbia + the company founded and controlled by <unk> doman its chairman and president said the purchase would make it canada 's <unk> largest forest products company + under terms of the transaction which was proposed in june doman said it acquired international forest products ltd. 's N N stake in western forest and western forest in a related transaction bought back a N N interest in the company from fletcher challenge canada ltd + the fletcher challenge canada stake was then canceled doman said raising doman 's interest in western forest to N N + doman said it was also granted an option to acquire the remaining N N interest in western forest which is currently held by two canadian banks + international forest western forest and fletcher challenge canada are <unk> forest products concerns + the canadian government introduced in the house of commons legislation to extend federal regulatory authority over <unk> government-owned telephone utilities in alberta <unk> and manitoba + the legislation would open the way for more telephone services and more competition in the telephone business in the three provinces federal officials said + the federal government initiative follows a recent canadian supreme court decision that held that the major telephone companies in alberta <unk> and manitoba and in the atlantic coast provinces were <unk> <unk> and subject to federal legislative authority + prior to the ruling the federal government had regulated only the telephone companies in quebec ontario british columbia and the northwest <unk> + the governments of alberta <unk> and manitoba have strongly opposed federal regulation of their telephone companies + the extension of federal regulatory authority over telephone utilities in the atlantic provinces has n't required special legislation because they are <unk> + amdura corp. said its bank group led by chicago-based continental bank agreed to extend its $ N million bridge loan until march N N and gave it a new $ N million credit line + under terms of the loan agreement amdura said it will <unk> the next quarterly dividends on its series a b c and d preferred shares which are due nov. N + since the preferred stock is cumulative amdura said it will pay all omitted dividends which range from $ N to $ N a share when <unk> requirements have been met + amdura 's bridge loan part of the financing for amdura 's acquisition of <unk> in december N was to come due next friday + the company 's new management which took control of amdura 's board after a consent solicitation last month wanted to extend the loan while it tries to sell two units + proceeds from those sales will be used to reduce debt + amdura a denver hardware and automotive distributor said the new credit agreement will provide the working capital needed to meet ongoing requirements + three savings-and-loan institutions in kansas and texas were added to the resolution trust corp. 's conservatorship program after federal regulators declared the thrifts insolvent and named the rtc their receiver + the deposits assets and certain liabilities of the three thrifts were transferred to newly chartered federal mutual institutions + the three institutions are <unk> kansas federal savings & loan association wichita which had $ N million in assets valley federal savings & loan association of <unk> <unk> texas with $ N million in assets and <unk> savings association el paso with $ N million in assets + the three insolvent thrifts will maintain normal business hours and operations under <unk> managing agents while the rtc tries to negotiate permanent resolutions + separately century bank phoenix ariz. was closed by arizona banking officials + the federal deposit insurance corp. approved the assumption of century 's deposits and fully secured liabilities by a newly chartered subsidiary of valley capital corp. las vegas + the new institution is also called century bank and the failed bank 's five offices will reopen today + the failed bank had assets of about $ N million + the newly chartered bank will assume about $ N million in N deposit accounts and pay the fdic a purchase premium of $ N million + it also will buy about $ N million of assets and the fdic will advance $ N million to the assuming bank + <unk> plc of britain is to come to the rescue of the french distribution group societe commerciale de <unk> <unk> in an operation that has been engineered with the paribas financial group societe commerciale 's main shareholder + the announcement came as societe commerciale a trading company with activities in more than N countries reported a loss of N million francs $ N million for the first six months of this year partly because of provisions on future losses + the rescue operation will consist of a capital boost for societe commerciale of one billion francs through issues of new shares and convertible bonds + cie financiere de paribas said it intends to transfer its N N <unk> in societe commerciale to a new company which will be jointly owned with <unk> + this will give paribas and <unk> joint control of societe commerciale + paribas said <unk> will participate in the <unk> capital boost for societe commerciale + international business machines corp. and mca inc. said they agreed to sell their discovision associates joint venture to u.s. units of pioneer electronic corp. for $ N million + the joint venture licenses a portfolio of about N patents and patent applications relating to <unk> recording technology + ibm and mca formed discovision in N to make <unk> optical products + but the partners did n't believe the market for the systems was developing as rapidly as they had hoped + after reportedly investing $ N million in the business discovision <unk> manufacturing operations in N and sold many of its assets to tokyo-based pioneer among others + discovision now has world-wide license agreements with major manufacturers covering cd audio disks audio disk players <unk> and <unk> players + it also licenses <unk> based data storage and <unk> devices + james n. <unk> president of discovision and a vice president of mca said that ibm and mca had n't planned to sell the joint venture which is now profitable but that pioneer approached discovision earlier this year + he said it is n't certain whether discovision 's current management will remain when pioneer buys the company + the agreement is contingent on certain government approvals and should be completed later this year + tokyo stocks closed higher in moderately active but <unk> trading as the recent anxiety in world stock markets continued to <unk> + london shares also closed firmer in thin trading driven largely by technical factors and support from a new wall street rally + prices also rose on almost every other major exchange in europe asia and the pacific + tokyo 's nikkei index of N issues which gained N points wednesday climbed N or N N to N + volume on the first section was estimated at N million shares compared with N million wednesday + winners outnumbered losers N with N issues unchanged + in early trading in tokyo friday the nikkei index rose N points to N + on thursday the tokyo stock price index of all issues listed in the first section which gained N point wednesday was up N or N N at N + the morning session was dominated by individuals and dealers but some institutions participated in the afternoon encouraged by the market 's <unk> traders said + sentiment was helped by the small gain made by new york stocks wednesday despite anxiety over possible effects of the major earthquake that struck northern california tuesday + having survived both last friday 's N N wall street plunge and the immediate aftermath of the san francisco bay area earthquake tokyo market participants expressed relief that trading had returned to normal + <unk> <unk> general manager of the stock trading division at nikko securities said that after looking at the reasons for friday 's wall street plunge participants realized that the tokyo and new york markets have different economic fundamentals + this conclusion he said restored the credibility of tokyo stocks + <unk> <unk> head of the investment information department at daiwa investment trust & management said that if new york stocks just <unk> in or near their current range the tokyo market will remain firm with a moderately upward trend for the rest of the year + but traders said the market lacks a base on which to set long-term buying strategy as the future direction of u.s. interest rates remains unclear + investor interest switches back and forth <unk> as they are unable to shift their weight to one side for sure mr. <unk> of daiwa investment trust said + many of wednesday 's winners were losers yesterday as investors quickly took profits and <unk> their buying to other issues traders said + pharmaceuticals made across-the-board advances + fujisawa pharmaceutical gained N to N yen $ N a share <unk> pharmaceutical was up N at N and <unk> advanced N to N + housing issues were boosted by a report that daiwa house expects to post N N higher earnings for its latest fiscal year traders said + daiwa house advanced N to N <unk> homes was up N at N and <unk> house gained N to N + leading construction companies also attracted interest for their strong earnings <unk> traders said + they and many other major japanese corporations will issue results soon for the fiscal first half ended sept. N + ohbayashi was up N to close at N <unk> gained N to N and <unk> advanced N to N + other winners included real estate issues mitsubishi estate which closed at N up N and mitsui real estate development which gained N to N + steel shares fell back after advancing for three days + <unk> steel was down N at N kobe steel lost N to N and nippon steel slipped N to N + mitsubishi <unk> a leading <unk> wednesday fell N to N as investors grabbed profits + london 's financial times-stock exchange 100-share index finished N points higher at N + the financial times 30-share index ended N higher at N + volume continued to ease from the active dealings at the start of the week + turnover was N million shares compared with N million wednesday + dealers said the market was <unk> by a squeeze in ft-se N stocks particularly among market-makers seeking shares that had been hit hard in recent weeks such as retailers and <unk> concerns + but despite the flurry of interest in those shares dealers said the market remains nervous about wall street 's volatility and high u.k. interest rates + u.k. money supply figures for september released yesterday showed continued growth in corporate and personal lending which will keep pressure on the government to maintain tight credit + among the stocks featured in the market-makers ' squeeze was sears which closed at N pence $ N a share up N + general universal stores another <unk> stock hit recently by concerns over retail demand in the face of high interest rates gained N to # N + <unk> gained N to + another active ft-se N stock was clothing and furniture retailer burton which gained N to N + insurers recovered ground again on <unk> demand and speculative buying linked to talk of mergers in the industry before the european community 's planned market unification in + royal insurance was the sector 's hottest issue ending N higher at N + sun alliance fell N to close at N and general accident jumped N to # N + b.a.t industries surged in afternoon dealings after its shareholders approved a plan to <unk> of its u.s. and u.k. retailing operations to fend off <unk> investment 's # N billion $ N billion hostile bid + with the company also exercising a plan to buy back as many as N N of its shares outstanding b.a.t closed at N up N + turnover was N million shares including about four million shares traded in the afternoon after the shareholders ' meeting + b.a.t said it purchased N million shares at N + in other european markets shares closed sharply higher in stockholm frankfurt zurich and paris and higher in milan amsterdam and brussels + south african gold stocks closed firmer + prices also closed higher in singapore sydney taipei wellington hong kong and manila but were lower in seoul + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + the federal response to california 's earthquake crisis was <unk> by <unk> <unk> between the white house and san francisco 's mayor art agnos + mr. agnos complained that he was <unk> off that vice president dan quayle who <unk> the earthquake site wednesday did n't schedule a private meeting with him + the mayor said the quayle visit was a publicity <unk> + the white house said mr. quayle 's staff had invited the mayor to two meetings of the vice president and groups of local officials and had offered to <unk> a helicopter to pick him up + mr. agnos declined the <unk> the white house said + marlin fitzwater white house press secretary also asserted that mr. agnos had failed to return telephone calls from john <unk> white house chief of staff + we regret very much that the mayor of san francisco has decided not to cooperate with us on this matter in making sure that there is adequate federal support for the disaster in his city mr. fitzwater said + by late yesterday both sides appeared prepared to <unk> the <unk> + the white house announced that mr. agnos along with the <unk> of oakland and <unk> are to <unk> president bush on a tour of the earthquake area today + and one white house official reported that mr. agnos had been very helpful in making arrangements for mr. bush 's hastily scheduled trip to california + gold and silver broker <unk> semel asked a federal court to halt the commodity exchange from imposing a record $ N fine on his firm + the suit filed in federal court in manhattan also asks that the comex 's nine-month suspension of mr. semel be lifted pending the broker 's appeal of the disciplinary measures + the fine and suspension announced in august are the <unk> sanctions the comex has ever ordered against one of its members + the comex accused the <unk> mr. semel of fraudulent conduct and improper trading + the disciplinary proceedings stem from trading in april N + mr. semel and his firm semel & co. have appealed the comex decision and the sanctions to the commodity futures trading commission + the commission denied mr. semel 's request that the fine and suspension be delayed pending the appeal + the lawsuit states that unless the sanctions are halted pending an appeal the broker and his firm will be <unk> injured and their business will be totally and permanently destroyed + already the firm has paid $ N of the fine the suit said and it will have to liquidate additional assets in order to pay the rest + a spokesman for the comex could n't be reached to comment + the federal national mortgage association said N lenders across the u.s. have agreed to offer home loans under fannie mae 's pilot program for elderly people + fannie mae a federally chartered and <unk> company said the lenders include prudential home mortgage co. a unit of prudential insurance co. of america that operates in every state + prudential insurance is based in newark n.j + fannie mae has agreed to buy as much as $ N million of loans under its seniors ' housing opportunities pilot program which offers four types of loans to people N years of age or older to help them maintain their home or obtain housing + the loans can be for <unk> apartments for <unk> built in a relative 's yard for <unk> or for <unk> transactions + fannie mae makes a secondary market in home loans + it buys loans from lenders packages some into securities for sale to investors and holds the remainder in a portfolio + robert m. gintel senior partner of a greenwich conn. investment firm said he plans to launch a proxy fight against the board of <unk> xtra corp + mr. gintel head of gintel & co. said he plans to conduct a proxy contest to <unk> a majority of xtra 's board at the next annual stockholders meeting + xtra a transportation leasing company said in a statement it would have no comment on mr. gintel 's plans until further information has been disclosed by him + the company also said its N annual meeting has not been scheduled + mr. gintel owns N of the company 's N million common shares outstanding + xtra said it recently bought back approximately N of its shares <unk> to its existing authorization to acquire as many as N shares + mr. gintel has filed suit in delaware chancery court seeking to block xtra 's anti-takeover <unk> + in a filing with the securities and exchange commission mr. gintel said xtra has pursued business strategies that are n't in the best interest of stockholders + stocks and bonds surged on the second anniversary of black monday as a favorable inflation report prompted speculation of lower interest rates + the dow jones industrials closed up N at N after rising over N points in <unk> + the rally brought the gain so far this week to about N points + the dollar finished mixed while gold declined + consumer prices climbed a moderate N N in september mostly due to higher clothing costs + energy prices continued to fall at the retail level but economists worried about a big rise in wholesale energy costs + british airways dropped out of the current bidding for united air 's parent leaving a ual <unk> group without a key partner + british air 's move raised new questions about the buy-out group 's efforts to revive a stalled bid for ual + a capital-gains <unk> plan was dropped by senate democrats under pressure from their leadership + the move is a setback for bush who needs democratic support to pass a capital-gains cut in the senate + other tax breaks also are likely to be restored or created in the coming months as special interest groups try to undo the N tax overhaul + many retailers are worried that a price war could <unk> this christmas if <unk> firms such as campeau slash prices to spur sales + at&t unveiled a sweetened early retirement plan for management that the company hopes will save it $ N million in the next year + also profit rose N N in the third quarter + chrysler will idle a toledo assembly plant temporarily due to slowing sales of its profitable jeep cherokee and <unk> sport utility vehicles + digital equipment 's profit fell N N in the latest quarter prompting forecasts of weaker results ahead + analysts were troubled by signs of flat u.s. orders at the computer maker + ibm plans to unveil over N software products on tuesday to try to end some of the problems in <unk> manufacturing operations + the tv units of paramount and mca are exploring offering prime-time programming to independent stations two nights a week + bankamerica 's profit jumped N N in the third quarter + the rapid recovery continued to be fueled by growth in consumer loans higher interest margins and only minor loan losses + big board short interest fell N N for the month ended oct. N the second decline in a row + borrowed shares on the amex rose to another record + bell atlantic posted a strong earnings gain for the third quarter as did southern new england telecommunications + but nynex pacific telesis and u s west had lower profits + b.a.t industries won shareholder approval for a defensive restructuring to fend off sir james goldsmith + american express 's profit climbed N N in the quarter aided by a surge in its travel business and despite a big rise in third world loan reserves + markets + stocks volume N shares + dow jones industrials N up N transportation N up N utilities N up N + bonds shearson lehman hutton treasury index N up + commodities dow jones futures index N up N spot index N up N + dollar N yen up N N marks off N + computer sciences corp. el <unk> calif. said the national aeronautics and space administration will negotiate details of a contract valued at about $ N million to provide software for the <unk> research center + included in the three-year contract are options for two one-year <unk> + nasa awarded the contract to <unk> in november but an appeal by sterling software inc. of dallas sent the contract to the general services administration board of contract appeals and the board required nasa to <unk> bidders ' proposals + sterling had completed a five-year contract for nasa but lost its bid for renewal + as directed by the board nasa completed the evaluation and again chose <unk> + for its fiscal year ended march N <unk> had revenue of $ N billion + aftershocks rattled northern california amid an earthquake cleanup + as power and commuters returned to much of downtown san francisco for the first time since tuesday 's temblor in the bay area three strong aftershocks one measuring N on the richter scale jolted the region + serious injuries or damages were n't reported + californians meanwhile tried to cope with <unk> services blocked roadways and water shortages in the aftermath of the tremor that left scores dead and injured + thousands remained homeless + bush is to visit the area today and officials in washington estimated that emergency assistance would total at least $ N billion + a series of earthquakes struck northern china killing at least N people <unk> hundreds and <unk> about N homes the <unk> news agency said + the senate rejected a constitutional amendment sought by bush to prohibit <unk> of the u.s. flag + while the proposal won a slight majority the N vote was well short of the two-thirds needed to approve changes in the constitution + it was considered a victory for democratic leaders who favor a law barring flag burning + the house approved an $ N million aid package for poland and hungary nearly double what bush had requested + the vote of N sent the measure to the senate + britain 's chief justice <unk> the murder convictions of four people for irish republican army <unk> that killed seven people in N + the reversal came after the government conceded that investigators may have <unk> evidence + the <unk> four three <unk> and an <unk> have been <unk> since N + the nobel prize in literature was won by <unk> jose cela a spanish writer + his N novel the family of <unk> <unk> is considered the most popular work of <unk> in spanish since <unk> 's don <unk> was published N years ago + the swedish academy in stockholm cited the <unk> cela for rich and intensive <unk> + the editor of pravda was dismissed and succeeded by a <unk> of soviet leader gorbachev + the action at the communist party daily viewed as the soviet union 's most <unk> newspaper was considered the most significant development in a week of kremlin <unk> over the press including sharp criticism from gorbachev + east germany 's new leader met with <unk> church officials to discuss a growing opposition movement demanding democratic freedoms + as they <unk> near east berlin a pro-democracy protest erupted in the <unk> city of <unk> and activists threatened further rallies against leader krenz 's expected hard-line policies + police in <unk> <unk> an international meeting on human rights <unk> czechoslovakia 's former foreign minister <unk> <unk> and N other activists + a leading u.s. human-rights monitor also was briefly held + dissident playwright <unk> <unk> reportedly escaped the crackdown the fourth against activists in recent days + bush met in washington with spain 's prime minister gonzalez and discussed what the president called the unique role that madrid can play in <unk> democracy in eastern europe and latin america + gonzalez who pledged to help monitor voting in nicaragua was said to be carrying proposals for free elections in panama + the galileo spacecraft <unk> <unk> toward the planet jupiter while five <unk> aboard the space shuttle atlantis measured the earth 's ozone layer + the robot probe was dispatched wednesday by the shuttle crew which is to conduct a series of medical and other experiments before their scheduled landing monday in california + argentina and britain agreed to resume diplomatic and economic relations seven years after the two nations battled over the <unk> islands + the announcement in which they said <unk> had <unk> followed a two-day meeting in madrid + rebel <unk> <unk> the capital of afghanistan killing at least N people as the soviet union was reported to be <unk> arms and food to kabul 's forces + fighting also was reported around the strategic town of <unk> near the <unk> border + saudi arabia 's foreign minister met in <unk> with president <unk> to develop a plan for the withdrawal of <unk> 's N troops from lebanon as part of a settlement of that nation 's 14-year-old civil war + the talks came as <unk> negotiations on political changes appeared <unk> + gop sen. specter of pennsylvania said he would vote to <unk> federal judge <unk> hastings in his impeachment trial on charges of perjury and bribery conspiracy + specter the vice chairman of the senate 's evidence panel said there was insufficient evidence to <unk> the miami <unk> + after slipping on news of a <unk> u.s. inflation figure the dollar rebounded later in the trading day + the u.s. unit dipped to a session low against the mark just after the release of the u.s. consumer price index + the report showed that september consumer prices rose just N N a smaller increase than expected + the market had anticipated a N N rise in the price index + the september index fueled speculation damaging to the dollar that the federal reserve soon will ease monetary policy further + but foreign-exchange dealers said the dollar staged a quick comeback prompted by a round of short covering and some fresh buying interest later in the trading day + traders said that a nearly <unk> gain in the dow jones industrial average fueled in part by news of a lower-than-expected price index had little influence on the dollar 's moves + the market is beginning to <unk> itself from wall street said one new york trader + in late new york trading yesterday the dollar was quoted at N marks down from N marks late wednesday and at N yen up from N yen late wednesday + sterling was quoted at $ N up from $ N late wednesday + in tokyo friday the u.s. currency opened for trading at N yen up from thursday 's tokyo close of N yen + some analysts said the consumer price index reflects a more significant slowdown in the u.s. economy than earlier indicated + they point out that september 's <unk> index showed a N N increase + they noted that because the consumer price index known as the <unk> is a more comprehensive measure of inflation and is rising less rapidly than the <unk> index or <unk> it could signal further easing by fed + others suggested however that the fed will hold any changes in monetary policy in check leaving fed funds at around N N N down from the N N level that prevailed from july through september + kevin <unk> chief economist with the swiss bank corp. said that both <unk> and <unk> climbed around N N N year-to-year in september + he argued that both <unk> and <unk> have in fact <unk> since spring + the fed wo n't be <unk> into easing mr. <unk> said predicting that for now interest rates will stay where they are + a four-day matched <unk> agreement a move to drain liquidity from the system was viewed as a technical move rather than an indication of tightening credit + market participants note that the mark continues to post <unk> gains against its u.s. counterpart than any other major currency particularly the yen + there 's a <unk> pit of dollar demand by japanese investors said graham <unk> managing director of foreign exchange at <unk> & shanghai banking corp. in new york adding that <unk> speculative demand would n't hold the dollar at its recent levels against the japanese currency + mr. <unk> <unk> that the mark remains well bid against other currencies as well + robert white manager of corporate trading at first interstate of california called the market <unk> <unk> noting that the u.s. remains a <unk> grab bag for japanese investors which accounts for the <unk> demand for u.s. dollars + on the commodity exchange in new york gold dropped $ N to $ N an ounce in moderate trading + estimated volume was three million ounces + in early trading in hong kong friday gold was at about $ N an ounce + hotel investors trust and its affiliate hotel investors corp. said the companies plan to sell all of the hotels the companies own and operate except for two <unk> in las vegas <unk> + the hotels and management interests will be sold at an auction said john <unk> president and chief executive officer of the trust and a director of the corporation + value of the properties and management interests was n't disclosed + in all the los angeles-based trust plans to sell its interests in N hotels while the corporation will sell its management interests in N of those properties + excluded from the sale are the interests of the trust and the corporation in two las vegas <unk> + after completing the sale and paying debts the trust and corporation will consider a number of options including a stock repurchase payment of special dividend or investment in more <unk> properties + the companies will retain their current regular quarterly dividend of N cents during the sale process mr. <unk> said + for the first six months the trust and corporation had a net loss of $ N + <unk> international inc. citing cost-cutting moves and increased sales of its <unk> products and dialysis <unk> posted a N N rise in third-quarter net income on a N N sales boost + the <unk> ill. medical products and services company posted net of $ N million or N cents a share compared with $ N million or N cents a share a year ago + sales totaled $ N billion up from $ N billion the previous year + for the nine-month period <unk> said net rose N N to $ N million or $ N a share from $ N million or N cents a share during the year-ago period + sales for the nine months were up N N to $ N billion from $ N billion in the same period in N + in new york stock exchange composite trading <unk> closed at $ N a share down N cents + a group bidding for american medical international inc. new york said it formally received the final financing needed for a $ N billion bid for about N N of the hospital operator 's stock + the offer from ima acquisition corp. for as many as N million shares is set to expire wednesday + earlier this month ima said it had received about $ N billion of senior debt financing from chemical bank and six other banks chemical bank said it was highly confident it could arrange the balance of about $ N million + in addition the $ N billion bid includes $ N billion of debt that will be assumed by ima $ N million of high-yield junk bonds that will be sold by first boston corp. and $ N million of equity + in new york stock exchange composite trading yesterday american medical closed at $ N up $ N + american medical has agreed to the offer but earlier this month said it had received new <unk> of interest from two previous bidders + american medical said it would pursue the inquiries from the companies but would n't identify them unless they make firm offers + h&r block is one of the great success stories of u.s. business + oddly enough this presents a problem for the stock + some money managers are <unk> with h&r block because they suspect the company 's glory days are past or at least passing + block 's <unk> business is mature they say and some of its <unk> are facing tough competition + it 's no secret that block dominates the mass-market <unk> business + the street knows all about the <unk> of its earnings which are headed for a ninth consecutive yearly increase + the company has consistently earned more than a N N annual return on its net worth while many companies would be happy with N N + but the <unk> business simply has no more room to grow says mark <unk> director of research for capital supervisors inc. a chicago firm that manages $ N billion + you go to any medium-sized town in the u.s. and you 're going to see h&r block tax services + mr. <unk> 's firm once held about N N of h&r block + that was before the N tax reform made taxes more complex than ever + one thing you can bet on he says is that congress will do stupid things with the tax code + but capital supervisors sold the last of its h&r block holdings earlier this year + they 're <unk> around for diversification he says + i think a lot of their businesses are just <unk> + last week the stock hit an <unk> high of N N before getting <unk> up in the friday-the-13th <unk> + it closed yesterday at N N + to be sure the stock still has a lot of fans + if you invested $ N in the initial public offering in N it would be worth well over $ N million today says <unk> e. russell a <unk> okla. money manager + i do n't know what the risk is of holding the stock + taxes are not going out of business + many of his <unk> feel the same way + the number of big institutions that own h&r block shares is N and growing according to a midyear tally by <unk> investment technologies + brokerage houses are sweet on h&r block too + <unk> investment research counts five brokerage houses that consider the stock a buy and four that call it a hold + none <unk> say to sell it + but some money managers are doing just that + eugene sit president of sit investment associates in minneapolis says when we bought it we thought the growth rate was going to accelerate because of computerized tax filing and instant refunds the customer gets a refund immediately but pays extra to the tax <unk> which <unk> for uncle sam 's check + but neither of those developments did much to <unk> up growth mr. sit says + he figures block earnings are now growing at about a N N annual rate down from about N N the past five years and will grow at an N N rate in the future + that 's not bad mr. sit says but it sure does n't justify block shares being priced at N to N times estimated earnings for fiscal N + he wants stocks whose <unk> ratio is less than their growth rate as he figures it h&r block does n't even come close + two other money managers in explaining why they have sold large amounts of h&r block stock this year spoke on the condition they not be named + the stock was going no place and the earnings were <unk> said one + in the past two years the stock almost stalled out + it was above N adjusted for a subsequent split in N and has n't gotten much higher since + there 's no more growth in the tax business except for increasing prices the money manager added + the <unk> subsidiary which provides information to <unk> users is where the growth is he said but its format is still too complicated + <unk> provides about N N of both sales and earnings + the tax business still provides about N N of earnings on about N N of sales + personnel pool temporary workers mostly in the health-care area chips in close to N N of sales but only about N N of earnings + the shortage of nurses is <unk> profit at personnel pool said the second money manager + he concedes h&r block is <unk> and a great company but says it does n't grow fast enough for us + we 're looking for something that grows faster and sells at a comparable price-earnings multiple + thomas m. <unk> president and chief operating officer says i would disagree that the tax business is mature + for example he says the company is planning to go nationwide with a new service tested in parts of the country aimed at taxpayers who want refunds in a hurry + mr. <unk> concedes that a recent diversification attempt fell through + we 're still interested in diversifying he says but we 'd rather be prudent than make a mistake + he also says <unk> 's earnings continue to grow N N to N N a year in spite of tough competition from giants like sears and ibm + and he says block 's other businesses are growing although less consistently + h&r block nyse <unk> + business tax preparation + year ended april N N + revenue $ N million + net loss $ N million $ N a share + first quarter july N N + per-share earnings loss of N cents vs. loss of N cents + average daily trading volume N shares + <unk> industries inc. said its board authorized the redemption dec. N of the company 's $ N cumulative convertible special preferred stock at $ N a share not including a N cent dividend for the current quarter and the $ N cumulative convertible preferred stock at $ N plus a N cent dividend for the current quarter + the dayton ohio maker of parts for the building and transportation industries said holders of the two issues can convert their stock into common shares through the close of business dec. N + each $ N cumulative share can be converted into N common shares the ratio on the $ N cumulative is eight common shares for each $ N cumulative preferred + <unk> did n't indicate how many shares outstanding it has of either issue + company officials could n't be reached + earlier this month the company said its board approved a proposed management-led leveraged buy-out at $ N a share or $ N million + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + puts and calls stock market <unk> for options to sell or buy a company 's shares were long an <unk> wall street art best left to the experts who used them either as a hedge or for pure speculation + options lost some of their mystery in N when the chicago board of trade set up a special exchange to deal in them + until then options had been traded only in the over-the-counter market mostly in new york and in an almost <unk> secondary market operating <unk> by telephone + the chicago board of trade the no. N u.s. grain market had long <unk> under the attention won by its innovative archrival the <unk> mercantile exchange + so the men who ran the grain pits <unk> when joseph sullivan a <unk> former wall street journal <unk> offered them the idea of <unk> trading + after four year of <unk> and $ N million in seed money the board set up the new marketplace titled it the chicago board options exchange and named sullivan its first president + the <unk> were modest + the cboe opened for business on april N N in what had been a board of trade <unk> + it listed just N options to buy a pilot list of stocks on the new york stock exchange + puts or sell options would not be added until N + the N members had paid $ N apiece for seats + the N price $ N + the first day 's business was N contracts each for N shares of one of the listed stocks + by the end of N the number of underlying big board stocks had been increased to N and the options exchange had run up volume of N million contracts + a year later it was N million + last year more than N traders on the cboe bought and sold N million contracts on N listed stocks N N of all u.s. listed options trading + the new exchange drew instant recognition from an unwelcome quarter + the government <unk> against fixed brokerage commissions promptly sued the cboe over its <unk> system + the nuclear regulatory commission ruled unanimously that the financial troubles facing the seabrook n.h. <unk> plant have no impact on whether the plant receives a <unk> license + massachusetts attorney general james shannon opposing the license said he will appeal the ruling in federal court + seabrook officials said the plant could receive a <unk> license by the end of the year + the <unk> rejected mr. shannon 's argument that public service co. of new hampshire which owns the largest share of seabrook and N other owners are financially unable to guarantee the plant 's safe operation + mr. shannon was seeking a waiver of <unk> policy that <unk> financial considerations in making licensing decisions + in its ruling the <unk> said that because seabrook will be allowed to charge rates sufficient to run the plant and make payments on past construction costs consideration of the owners ' financial condition is <unk> + the commissioners found the circumstances of the case did n't undercut the assurance from government rate <unk> of available funds adequate for safe operation said a commission spokesman + in january N the utility filed for protection under chapter N of the federal bankruptcy code allowing it to continue to operate while protected from creditors ' lawsuits + bristol-myers squibb co. new york the newly merged drug and <unk> company reported record third-quarter earnings for both companies in the merger + bristol-myers co. and squibb corp. princeton n.j. merged oct. N but the new company reported <unk> earnings for both companies + for the fourth quarter bristol-myers squibb will report one set of earnings + bristol-myers said net income rose N N to $ N million or N cents a share from $ N million or N cents a share a year earlier + sales gained N N to $ N billion from $ N billion + squibb corp. said net rose N N to $ N million or $ N a share from $ N million or $ N a share + sales were $ N million up N N from $ N million + in new york stock exchange composite trading bristol-myers squibb rose $ N to $ N + <unk> industries inc. hurt by softness in the u.s. automotive and construction industries said third-quarter net income fell N N to $ N million or N cents a share from $ N million or $ N a share a year ago + sales were nearly identical to the year-earlier $ N billion + the drop in earnings did n't surprise analysts who said the pittsburgh glass coatings and chemical concern had been predicting a slow quarter because of the sluggish construction industry a major market for the company 's flat glass + glass sales to canadian and european auto makers and sales of replacement auto glass in all markets increased + the <unk> segment also posted higher sales particularly in north america and europe + but sale increases were offset by <unk> sales in flat glass and <unk> <unk> the company said + also chemicals sales were slightly down because of lower prices for <unk> <unk> <unk> and other <unk> <unk> + in new york stock exchange composite trading <unk> closed at $ N a share down N cents + jefferies group inc. said third-quarter net income fell N N to $ N million or N cents a share from $ N million or N cents a share on more shares a year earlier + revenue rose N N to $ N million from $ N million + jefferies a los angeles holding company primarily engaged in securities trading also said stock market declines since the quarter ended sept. N created an <unk> pretax loss of about $ N million in its risk arbitrage account + for the nine months jefferies said net fell N N to $ N million or $ N a share from $ N million or $ N a share + revenue fell N N to $ N million from $ N million + sony corp. new york said its bids for columbia pictures entertainment inc. and guber-peters entertainment co. have been cleared by federal antitrust regulators + the japanese company said the waiting period under the hart-scott-rodino antitrust act for the $ N billion bid for columbia and the $ N million offer for guber-peters expired monday + sony has agreed to buy both companies but is in a legal battle with warner communications inc. over the services of producers peter guber and jon peters + in a filing with the securities and exchange commission sony also said two more suits have been filed opposing the company 's agreement to buy columbia + sony added that a hearing has been set for thursday in the delaware chancery court in one of the suits + thursday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + china said the question of taiwan 's membership in the general agreement on tariffs and trade should be considered only after china 's own membership in the <unk> organization is restored + both china and taiwan are seeking seats in gatt which sponsors <unk> agreements and sets <unk> rules + as one of china 's provinces taiwan has no right to join gatt on its own foreign ministry spokesman <unk> <unk> said + china under the <unk> government of <unk> <unk> was a founding member of gatt in N + the <unk> withdrew in N after their flight to taiwan and the communist government in beijing applied for restoration of china 's membership in july N + the u.s. has voiced opposition to china 's bid for gatt membership saying china has yet to <unk> needed economic reforms + japan 's biggest women 's underwear maker <unk> corp. said that it developed a sports car that it plans to market in two years + the <unk> <unk> can run at over N miles an hour a company spokesman said + the base price of the car is estimated at N million yen about $ N + <unk> said it intends to produce the cars through a car manufacturer + along with the car <unk> plans to launch a series of <unk> men 's underwear + our image is a company that makes women 's products said a <unk> spokesman + now we 're going to sell to men + the british <unk> magazine private eye won an appeal against the size of a $ N libel award to <unk> <unk> the <unk> wife of the <unk> <unk> mass <unk> + an <unk> panel slashed all but $ N from the award the largest ever set by a british jury pending a <unk> of the damages + but the panel dismissed the magazine 's <unk> that it had n't <unk> mrs. <unk> when it accused her of trying to sell her story to capitalize on the <unk> of her husband + private eye had been threatened with <unk> because it could n't afford the libel payment + <unk> co. a travel agent based in osaka japan announced that it and <unk> <unk> corp. a major japanese trading house will jointly build a <unk> <unk> in <unk> australia + <unk> said the partners plan to rent to tourists but will also sell to interested parties + <unk> has a N N stake in the venture and <unk> <unk> has the rest + construction of the <unk> building will begin next may and should be completed in april N + units will cost from N to N million australian dollars about us$ N to us$ N million + the soviet union has halted construction of two <unk> nuclear <unk> and is <unk> the future of N other existing <unk> + <unk> <unk> vice chairman of the state committee on nuclear safety said the two <unk> were at <unk> and <unk> + news of the halt comes amid growing anger in the <unk> and <unk> over continuing high levels of radiation from <unk> + a former vice president of the singapore branch of drexel burnham lambert group inc. was charged in court yesterday on N counts of cheating + francis <unk> N is alleged to have been involved in cheating drexel burnham lambert of up to N million singapore dollars us$ N million by carrying out unauthorized transactions on the london commodities exchange and the international petroleum exchange + mr. <unk> is alleged to have used the account of singapore hotel and property <unk> <unk> <unk> seng to effect the transactions + japan says its economic growth will fall sharply if it cuts back on the use of oil coal and gas to cap emissions of carbon dioxide + a ministry of international trade and industry official said that a study found that japan 's annual economic growth rate would eventually be only N N if <unk> emissions remained at this year 's level of N million tons + the study will support arguments against <unk> <unk> emissions that japan will make at a <unk> conference on atmospheric pollution next month + the study said japan 's <unk> emissions would slightly more than double by N unless the nation reduced its <unk> on fossil fuels + it said that expanding <unk> capability is the <unk> way to <unk> that <unk> + but increased reliance on nuclear power would meet stiff opposition from environmentalists a second ministry official said + just in time for halloween britain 's <unk> university press is publishing a <unk> of <unk> + the books N <unk> include stepping on cracks and knocking on wood + in new zealand 's tiny township of <unk> which has had direct dialing for less than a year about N angry <unk> customers questioned the size of their bills + it turned out their children had been dialing a sex fantasy service in the u.s. + slowing sales of its profitable jeep cherokee and <unk> sport utility vehicles are forcing chrysler corp. to temporarily idle its toledo ohio assembly plant for the first time since april N + about N hourly workers will be laid off for a week beginning oct. N and overtime has been eliminated at the plant for the fourth quarter a chrysler spokesman said + that 's a significant change from earlier this year when the plant worked substantial overtime only to have sales fall short of the company 's bullish expectations + sales of cherokee the <unk> jeep and the <unk> <unk> were actually up about N N through the end of last month + but that 's less than chrysler officials had hoped when they set ambitious production schedules for the toledo plant earlier this year + even when it became clear this spring that demand was n't coming up to expectations chrysler officials resisted cutting output because cherokee and <unk> are very profitable vehicles the spokesman said + instead chrysler officials in late may <unk> $ N cash rebates on the vehicles including the first such incentives on the popular <unk> cherokee since chrysler bought jeep in N + the incentives boosted sales for a while but the pace had cooled by last month + the result chrysler dealers had a bloated <unk> supply of the cherokee as of the end of last month and a <unk> supply of the <unk> pickup which toledo also builds + a <unk> to <unk> supply is considered normal + at <unk> <unk> one of the largest jeep dealerships in the country inventories have continued to swell + steve lowe general manager of <unk> ga. dealership said new rebates of $ N to $ N on the models have <unk> sales but not enough to significantly cut dealer stocks + if people are n't buying you have to close plants he said + separately chrysler said it will idle for four weeks the st. louis assembly plant that builds the chrysler <unk> and dodge <unk> models + chrysler officials said the plant is scheduled to resume production on nov. N and N hourly workers will be affected + general motors corp. meanwhile said it will idle for yet another week its <unk> n.j. assembly plant bringing to three weeks the total time that plant will be <unk> during october + gm said the assembly plant which builds the chevrolet corsica and beretta compact cars originally was scheduled to reopen monday but now will not resume production until oct. N + the shutdown affects N workers and will cut output by about N cars + sluggish sales of the beretta and corsica spurred gm to offer $ N rebates on those cars + the corsica and beretta make up the <unk> car line at chevrolet but sales of the cars are off N N for the year and fell a steep N N early this month + gm has scheduled overtime at its <unk> ohio and <unk> wis. assembly plants which build the chevrolet <unk> + ford motor co. said it will shut down for one week its kentucky truck plant because of a shortage of dealer orders + the shutdown will idle N hourly employees and eliminate production of about N medium and heavy duty trucks + the assembly plant is scheduled to resume production on oct. N + meanwhile the nine major u.s. auto makers plan to build N cars this week down N N from N a year ago and flat with last week 's N car output + f includes chevrolet <unk> and toyota <unk> + r revised + x <unk> N figure includes <unk> <unk> through july + lotus development corp. 's net income rose N N in the third quarter from the year-earlier period + yesterday 's edition misstated the percentage increase + first fidelity <unk> <unk> n.j. reported a N N drop in third-quarter profit because of a decline in earning assets lower loan volume and tighter interest margins + the bank holding company posted net income of $ N million or N cents a share including $ N million or three cents a share in one-time tax benefits + a year earlier net was $ N million or $ N a share + first fidelity said <unk> assets increased to $ N million sept. N from $ N million june N + the rise resulted from the transfer to <unk> status of $ N million owed by two national borrowers and one local commercial real-estate customer first fidelity said + it said it does n't anticipate any loss of principal on two of the loans <unk> $ N million of these credits + first fidelity said it boosted its loan-loss provision to $ N million from $ N million a year ago primarily because of a weaker real-estate sector in the region + viacom inc. 's loss narrowed to $ N million in the third quarter from $ N million a year ago + thursday 's edition misstated the narrowing + coastal corp. said it signed a definitive agreement with <unk> to <unk> a <unk> oil refinery + coastal would n't disclose the terms + coastal a houston oil and gas company said it expects to begin operations in october N + the company said it may install additional processing units at the refinery to produce higher <unk> <unk> and other products + the company said it was leasing the site of the refinery from <unk> + exxon corp. built the plant but closed it in N and sold off much of the equipment to <unk> contractors from whom coastal bought back much of the equipment + a coastal spokesman said the biggest expense will be to <unk> the refinery but would n't say how much that would be + the prime minister of <unk> has said it could cost around $ N million + coastal said the refinery 's expected daily production will include N barrels of jet fuel N barrels of <unk> diesel fuel N barrels of <unk> N barrels of <unk> fuel oil N barrels of <unk> and N barrels of <unk> <unk> <unk> <unk> + loral corp. said fiscal second-quarter net income was $ N million or N cents a share compared with year-earlier earnings from continuing operations of $ N million or N cents a share + year-earlier net of $ N million or N cents a share included the results of loral 's former aircraft <unk> systems and engineered <unk> divisions which were sold april N to the company 's chairman bernard l. schwartz + the defense electronics concern attributed the operating improvement to higher profit margins and lower net interest expense + loral also reported that its bookings more than doubled to $ N million in the quarter ended sept. N from $ N million in the <unk> period + the increase was due mainly to a $ N million order from turkey to <unk> its fleet of <unk> <unk> with loral 's <unk> <unk> iii electronic <unk> system + the order is the biggest in the company 's history + sales in the latest period edged up to $ N million from $ N million + mr. schwartz said the recent increase in orders puts us well on the way to our goal of $ N billion in bookings for the year + he added i expect to see the earnings momentum we experienced this quarter continue for the rest of the year + loral said it expects sales to accelerate in both the third and fourth quarters of this fiscal year + loral 's profit from continuing operations for the first six months of fiscal N was $ N million or $ N a share up N N from $ N million or $ N a share a year earlier + net income fell N N to $ N million or $ N a share from $ N million or $ N a share + fiscal first-half sales slipped N N to $ N million from $ N million + bookings for the first half totaled $ N million compared with the $ N million recorded last year + in new york stock exchange composite trading loral closed at $ N down N cents + healthvest said two of its lenders have given it <unk> of default on bank loans and said they may take actions to recover their loans + healthvest an austin texas real estate investment trust said that chemical bank the lead bank under its domestic bank agreement told it that if $ N million owed to the bank group is n't paid by today the group will call the $ N million that healthvest has outstanding under the credit line + the bank group also said that it wo n't make additional advances under the $ N million credit line + healthvest missed a payment to the group that was due in late september + in addition healthvest said bank of tokyo trust co. also has notified it of a default and said it might take action to cure the default + healthvest missed an interest payment to bank of tokyo on oct. N + however healthvest said the tokyo bank indicated that it wo n't accelerate healthvest 's $ N million loan + healthvest is in a severe liquidity <unk> because its affiliate healthcare international inc. has failed to make about $ N million in principal and interest payments owed since august + healthcare operates many of the health-care properties that healthvest owns + empire pencil later called <unk> developed the plastic pencil in N + yesterday 's centennial journal misstated the company 's name + storage technology corp. had net income of $ N million or N cents a share for its <unk> quarter ended sept. N almost N times the $ N or two cents a share it posted for the year-ago period + storage louisville colo. which makes <unk> devices for mainframe computers said the huge increase in net reflects strong sales of its tape products particularly the N automated <unk> system which holds a library of tape <unk> + the company said it recently sold its <unk> <unk> system which cost $ N to $ N each + quarter revenue was $ N million up N N from $ N million last year + the stock market reacted strongly to the news + storage rose $ N a share to close at $ N in new york stock exchange composite trading + for the nine months storage had net of $ N million or N cents a share including an $ N million extraordinary gain for the anticipated proceeds from <unk> an irish unit + net was up N N from $ N million or N cents a share last year + revenue for the latest period was up N N to $ N million from $ N million + a canadian government agency <unk> approved proposed exports to the u.s. of natural gas from big <unk> fields in the mackenzie river delta area of the western canadian arctic + three companies esso resources canada ltd. shell canada ltd. and gulf canada resources ltd. applied to the canadian national energy board to export N trillion cubic feet of mackenzie delta natural gas over N years starting in N + to be economically <unk> the N billion canadian dollar us$ N billion project requires almost a doubling of natural gas export prices + it also faces numerous other hurdles including an agreement on a pipeline route for the gas + the board said the export licenses would be issued on the condition that canadian interests would also be allowed to bid for the mackenzie delta gas on terms similar to those offered to u.s. customers + u.s. buyers have already been lined up + they include enron corp. texas eastern corp. pacific interstate transmission co. and tennessee gas pipeline co + the project could result in the u.s. taking more than N N of its natural gas supplies from canada up from about N N currently + it would bring N gas fields into production at a combined rate of about N billion cubic feet a day + the board estimated that the cost of building a pipeline from the mackenzie delta to alberta would be about c$ N million + it also said projections of surging u.s. demand for natural gas and price forecasts of c$ N per thousand cubic feet by N would make the project economically viable + esso a unit of imperial oil ltd. which is <unk> by exxon corp. will be allowed to export N trillion cubic feet to the u.s. in the 20-year period + shell a subsidiary of royal <unk> group will be allowed to export N trillion cubic feet and gulf a unit of olympia & york developments ltd. will be allowed to export N trillion cubic feet + combustion engineering inc. stamford conn. said it sold and agreed to sell several investments and <unk> businesses for about $ N million which will be used for reducing debt and general purposes + the transactions are unrelated + the company agreed to sell its minority investments in makers of <unk> and related equipment stein <unk> and <unk> & <unk> to the major shareholder in the companies <unk> <unk> <unk> n.v + combustion engineering which provides engineered products systems and services for power generation also sold illinois minerals co. based in cairo ill + that unit of its georgia <unk> co. subsidiary was sold to a unit of <unk> corp + assets of construction equipment international houston were sold to <unk> crane inc. and the assets of <unk> electronics <unk> pa. were sold to closely held charter technologies inc + where do americans put their money + it depends on when you look + in N for instance less than N N of assets went into bank deposits + that rose to nearly N N during the depression and has n't changed much since + pension reserves on the other hand made up a relatively small part of household assets until the last decade when they skyrocketed + and there has been a drastic decline in the importance of <unk> business assets thanks to industry consolidation and a decline in family farms + that 's some of what emerges from the following charts which show how americans have changed their investment patterns over the past N years + some results are <unk> + but other figures are surprising + housing for instance has remained a fairly steady component of household assets over the past decade although common wisdom would have expected an increase + there is a lot of attention paid to housing as a form of household wealth says edward n. <unk> professor of economics at new york university + but it has n't increased much relative to other assets + it suggests that households <unk> wealth across a broad spectrum of assets + and housing though it appears in the popular mind as being the major growing household asset is n't + in addition investors ' desire to hold stocks directly and through mutual funds has held surprisingly steady stocks ' importance among assets largely reflects the ups and <unk> of the stock market and not a shift in <unk> preferences + stocks have not spread to the general public despite the fact that the environment is much different concludes robert avery an economist at cornell university + to me it says that despite all the views that we spend too much of our wealth on paper assets we have ways of holding wealth similar to N years ago + the charts show how <unk> assets have been distributed over time + the main components of the various <unk> categories housing primary home but not the land it 's on + land and other real estate land on which primary home is built investment property + consumer <unk> automobiles appliances furniture + bank deposits currency <unk> deposits small savings and time deposits certificates of deposits money-market fund shares + bonds <unk> bond funds + <unk> funds stocks and mutual funds other than money-market funds + <unk> business partnerships and sole <unk> professional corporations + pension reserves holdings by pension funds + mccaw cellular communications inc. said it sent a letter to lin broadcasting corp. <unk> its revised tender offer for lin and asking lin to conduct a fair auction + the letter apparently came in response to a request for <unk> by lin earlier this week + lin which has agreed with bellsouth corp. to merge their <unk> businesses said then that it would n't take a position on mccaw 's revised tender offer + earlier this month mccaw revised its offer to $ N a share for N million lin shares + mccaw is seeking N N of the cellular and broadcasting concern the revised offer includes a feature requiring mccaw to begin an auction process in july N that would buy out remaining holders at a per-share price roughly equivalent to what a third party might then have to pay for all of lin + the letter <unk> broad powers for an independent group of directors provided for in the revised offer + in a statement craig o. mccaw chairman and chief executive officer of mccaw said we trust lin will take no further actions that favor bellsouth + mccaw said the three independent directors provided for in the offer would be designated by the current board + the <unk> would be <unk> by the independent directors + lin would have a priority right to pursue all opportunities to acquire u.s. cellular interests in markets other than those in which mccaw holds an interest or which are <unk> to those markets unless lin has an interest there or <unk> to it + independent directors would have veto rights to any acquisition if they unanimously decide it is n't in lin 's best interest + independent directors would be able to block transactions they unanimously <unk> would be likely to depress the private market value of lin at the time it is to be sold in five years + if lin is put up for sale rather than purchased by mccaw in five years mccaw wo n't submit a bid unless the independent directors request it and the independent directors will run the bidding + the directors would be able to sell particular assets to enable such buyers as the regional bell operating companies to purchase the company 's interests + mca inc. said third-quarter net fell N N to $ N million or N cents a share from $ N million or N cents a share a year earlier + mca said revenue rose N N to $ N million from $ N million + the entertainment concern said the success of several movies released during the quarter including <unk> and uncle buck contributed to record revenue for its film unit + both mca 's <unk> and <unk> units also posted record revenue and operating profit + the parent company 's net included a loss which it did n't specify that was related to the company 's N N stake in cineplex odeon corp + cineplex a toronto theater chain had a second-quarter net loss of $ N million + mca said net also included certain reserves related to the restructuring of its <unk> toys ' international operations + these items were partly offset mca said by an unspecified gain on the sale of its miller international unit a maker and distributor of <unk> audio <unk> + in new york stock exchange composite trading mca rose $ N to $ N + in the nine months net rose N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + revenue increased N N to $ N billion from $ N billion + past due <unk> + i never pay my bills till the very last day i lose far less interest by proceeding that way + but it all <unk> out it 's so easy to see not till the last moment am i paid what 's due me + arnold j. <unk> + <unk> <unk> + the <unk> <unk> <unk> had strict <unk> views on sex and that is why you only see him <unk> in the museum + laurence w. thomas + helmsley enterprises inc. plans to close its company-owned insurance business and is seeking other brokers to take over its policies according to individuals familiar with the new york firm + helmsley enterprises is the <unk> organization for companies controlled by harry b. helmsley + these include office and residential real estate giant <unk> inc. and helmsley hotels + the insurance brokerage agency just a <unk> of helmsley 's vast empire would be the first piece of the company to be stripped away since last summer when mr. helmsley 's wife <unk> helmsley was found guilty of tax evasion + industry sources estimate the agency brokers property and casualty premiums worth about $ N million annually and has revenue based on a standard N N commission rate of about $ N million + the insurance firm acts as a broker on policies covering buildings managed by <unk> and others + many of the properties are owned through limited partnerships controlled by mr. helmsley + new york state law prohibits insurance <unk> from <unk> more than N N of revenue from <unk> affiliated companies + helmsley 's insurance division had slightly exceeded that percentage sources say but the division was n't considered significant enough to the company to be restructured particularly at a difficult time for the firm + adverse publicity from the scandal surrounding its founder 's wife and related management <unk> have put pressure on the entire helmsley organization + however individuals close to the company insist <unk> the insurance division a sideline from the company 's core property management business is n't the beginning of a sale of assets + helmsley 's insurance premiums are expected to be transferred to several different insurance brokerage companies + frank b. hall inc. of <unk> <unk> n.y. is reportedly working out an agreement with helmsley + officials there declined to comment as did helmsley management + outside the <unk> headquarters of the <unk> society of orange workers all seems normal in south africa 's <unk> society + a pickup truck driven by a white farmer <unk> past with a load of black workers <unk> in the back + over at <unk> the general store a black stock boy <unk> to help an elderly white woman with her packages + down the street a car pulls into the shell station and is surrounded by black attendants + but inside the white walls of the orange workers ' office just about the largest building in town save for the dutch <unk> church and the school south africa 's neat racial order is <unk> + a dozen white office workers <unk> newsletters and stuff them into <unk> + white women serve tea and coffee and then wash the <unk> and <unk> <unk> + white children empty the <unk> baskets and <unk> the windows + there is n't a black worker in sight + not in the kitchen or the <unk> or the book shop + if we want to have our own nation then we must be willing to do all the work ourselves says <unk> verwoerd jr. son of the former prime minister and the leader of the orange workers founded in N + they do indeed want their own nation + the <unk> of apartheid may be <unk> in the rest of south africa with <unk> opening its public facilities to all races blacks <unk> the <unk> <unk> of the <unk> and the government <unk> seven leaders of the banned african national congress + but here in morgenzon a <unk> town amid the corn fields of the eastern <unk> the orange workers are holding the <unk> steady + the orange workers who take their name from william of orange of the netherlands a hero of the <unk> <unk> believe that the solution to south africa 's racial problems is n't the <unk> of apartheid it 's the <unk> of apartheid complete and total separation of the races + here then is where the orange workers have come to make apartheid 's last stand + their idea is to create a city first and then an entire nation without blacks + this may seem to be a <unk> and utterly <unk> effort in africa + and the fact that there are only N <unk> orange workers may put them on the <unk> <unk> + but their ideal of an <unk> <unk> an <unk> reserve to be <unk> out of <unk> south africa is a mainstream desire of the <unk> which <unk> about one-third of the country 's five million whites + <unk> <unk> and <unk> have long <unk> on the need for a white <unk> + the orange workers are just putting this <unk> into practice + thus farmer <unk> <unk> his <unk> and jeans covered in <unk> <unk> around under his <unk> tightening <unk> and <unk> <unk> + on almost every other farm in south africa black workers do the repairs + but not here + mr. <unk> <unk> his own fields <unk> his own corn and <unk> and feeds his own sheep + over at the <unk> factory four white workers <unk> water tanks on their own and in their spare time they build <unk> across the road + on main street <unk> verwoerd and her daughters look after the clothes and fabric shop then hurry home to fix lunch for the rest of the family + down by the stream a group of orange workers puts the finishing <unk> on a golf course + if whites want to play there by themselves says consulting engineer <unk> van <unk> whites should also build it by themselves + if we want to survive as a people he says we have to change our way of life + the <unk> must end his reliance on others + in their <unk> to perfect apartheid the orange workers have discovered a truth that most of <unk> white south africa tries <unk> to deny the master ca n't become dependent on the <unk> and expect to remain master forever + if apartheid means you want cheap black labor and all the <unk> that go with it but you also want to exclude the blacks from social and political integration then these are two <unk> that ca n't go on forever says mr. verwoerd + he is sitting in his living room beneath a huge portrait of his late father <unk> f. verwoerd apartheid 's architect and south african prime minister from N to N + somewhere the son <unk> things went <unk> wrong with apartheid today whites even rely on blacks to police their separation + people took separate development as an opportunity to use black labor without ever getting rid of it + but my father meant it to mean real separation says the son + the orange workers speak <unk> + we agree with world opinion that the status <unk> in south africa is morally wrong says <unk> <unk> the orange workers ' chief <unk> and <unk> + we must either integrate <unk> or <unk> <unk> + morgenzon has long been a special <unk> of <unk> + according to mr. verwoerd the early <unk> <unk> were the first people to settle in the eastern <unk> even before the blacks + then when morgenzon was incorporated in N the farmer who owned the land <unk> that only whites could <unk> in town blacks could work there but they had to leave at night + today morgenzon is a town of N whites and two <unk> roads + <unk> push up through the cracks in the <unk> and many houses and <unk> are empty + there are few factories and no mines + it was an ideal place for the orange workers to start their new nation <unk> by the <unk> that have undermined apartheid elsewhere in south africa + so far about N orange workers have moved here spending nearly $ N million buying up property over the past three years + still complete and total <unk> remains <unk> + just beyond the city limits is a <unk> of N blacks who are employed throughout the area + despite the orange workers ' intention to put them all out of work they are in no hurry to leave + a young man called july that 's when he was born who works at the railroad station just up the street from the orange workers office points at the <unk> building and says <unk> we 're not allowed in there that 's all i know + the <unk> local whites who are n't orange workers are more troubled + try as they might they just ca n't <unk> of life without black workers + impossible impossible say the <unk> an elderly couple who have run the general store for decades + we ca n't do without their help says mrs. <unk> + oh no + we need them and i <unk> god for them + over at the shell station owner <unk> van <unk> who <unk> as morgenzon 's mayor worries that the orange workers have made his town the <unk> of the nation + what they want us to do just is n't practical he says noting that he employs N blacks + i could n't afford to hire N whites + the only <unk> who would be willing to work for this salary would n't know how to handle money + back at the verwoerd house <unk> sr. <unk> down over the shoulder of <unk> jr + the son believes that when the <unk> finally realize there is no turning back the integration of south african society and politics morgenzon will boom + we urge our people not to wait until they have to fight for their own nation says mr. verwoerd + by <unk> a place now we make ourselves a power any new government will have to take into account + <unk> he compares the orange workers to the anc which his father outlawed in N + the anc wo n't be stopped until there is a provision for black aspirations says mr. verwoerd + likewise no government will stop this idea of the <unk> + he <unk> for <unk> <unk> + look he says if the rest of south africa wants to have an integrated <unk> pot that 's their choice + we 'll leave them alone + we just want to have our own cup of tea + and they will even serve it themselves + <unk> now you can pick up that phone + but do n't do anything rash + after last friday 's stock-market plunge investment professionals cautioned people to resist the urge to call their brokers and sell stocks + not selling into a panic turned out to be very good advice despite the market 's volatility the dow jones industrial average has surged N points in the past four days + now with a <unk> of <unk> returning some advisers say it 's time for investors to take a hard cold look at the stocks they own and consider some careful <unk> + the market is sending nervous signals says peter j. <unk> chief market strategist for bear stearns & co. and it 's <unk> to be <unk> to stocks + alan <unk> president of <unk> capital management a los angeles <unk> firm adds that in periods of uncertainty like today it 's a good time to cut out the dead branches of your portfolio + not everybody agrees that it 's time to trim + we are n't inclined to <unk> stock portfolios now says steven g. einhorn chairman of the investment policy committee of goldman sachs & co + investors should stay with their stocks + we expect a <unk> and sloppy market for a short period but we do n't think it will be <unk> + the downside is limited + and even those who say some selective selling may be in order stress that individuals need to be in the stock market to achieve their long-term investment objectives and to help balance their other assets + any selling they say should be well <unk> and executed gradually during market rallies + they offer these suggestions + get rid of the dogs + sell stocks that are n't doing well now and that do n't have good earnings prospects says alfred goldman technical analyst at st. <unk> a.g. edwards & sons + most people do just the opposite they sell their winners and keep their losers + which types of stocks are most likely to qualify + technology stocks says mr. goldman + watch for earnings disappointments + a company does n't have to post a loss to be a candidate for sale says charles i. <unk> jr. chief market strategist at merrill lynch & co + if earnings do n't live up to analysts ' expectations he says that 's enough to dump the stock + john <unk> director of research for the american association of individual investors raises a <unk> note + <unk> a rule of <unk> for your own judgment can be a mistake he says + an earnings disappointment may reflect a situation that 's short-term + but mr. <unk> says the risk is that earnings disappointments will continue + the economy is <unk> after six good years and right now it 's better to shoot first and ask questions later + which types of stocks currently have the greatest earnings risks + computer companies commodity cyclical stocks like autos and retailing stocks he says + <unk> of heavy debt + the companies apt to run into earnings problems <unk> are the ones with heavy debt <unk> says larry <unk> partner in the san mateo calif. <unk> firm of <unk> <unk> & kaiser + mr. <unk> of bear stearns agrees if we do have an economic slowdown he says companies with high debt ratios will be dumped en <unk> + the best course for individual investors is to sell these stocks now the two advisers say + sell <unk> stocks + ual corp. 's difficulty in obtaining bank financing for its leveraged buy-out and its resulting price plunge is a <unk> to what 's going to happen to takeover stocks says mr. <unk> + takeover activity will slow down as more and more banks tighten their lending requirements he says + there 'll be fewer and fewer deals + moreover many financial advisers say individuals should be in the stock market as long-term investors not as traders trying to catch the next hot stock + in general they say avoid takeover stocks + compare <unk> ratios with prospects + mr. <unk> suggests that investors compare <unk> ratios the price of a share of stock divided by a company 's per-share earnings for a 12-month period with projected growth rates + if you think earnings will grow at N N a year it 's all right to pay N times earnings he says + but do n't pay N times earnings for a company that 's expected to grow at N N a year + mr. <unk> thinks the market will probably go higher but will be <unk> with stocks if the earnings are n't there + mr. <unk> <unk> that investors should n't <unk> follow any specific <unk> sell trigger + if you say sell anytime a company 's <unk> ratio exceeds N that <unk> out all your growth stocks he says + you eliminate companies with substantial prospects that are moving up in price + examine what has changed + tom <unk> market analyst at a.g. edwards & sons inc. says investors should consider selling if there has been a fundamental change in a company since they bought its stock + say you purchased a stock because of a new product that was in the works + now because of various difficulties the product has been scrapped + time to sell says mr. <unk> + similarly he says <unk> you were attracted to a company because of expectations that sales would hit $ N million by N + if things have n't worked out that well and sales wo n't hit $ N million until N it 's time to consider selling he says + usx corp. declined a united steelworkers request for a <unk> of its four-year labor contract that is due to expire jan. N N + the union on oct. N requested that the contract be reopened to restore all pay and benefits that the union gave up in the N and N <unk> of bargaining + a united steelworkers <unk> said lynn williams the union 's president was out of town + the union wo n't respond to the usx statement until mr. williams has studied it the spokesman said + robert a. <unk> chief financial officer and a director of this natural-gas pipeline company was elected to the additional position of executive vice president + in addition michael w. <unk> executive vice president of a columbia unit was named assistant chief financial officer and a senior vice president of the parent company + the appointments take effect nov. N + both men are N years old + this magazine and book publisher said three men were elected directors increasing the board to N + they are james r. <unk> N years old and chairman and chief executive officer of <unk> international inc. robert g. schwartz N chairman president and chief executive officer of metropolitan life insurance co. and walter v. <unk> N chairman and chief executive officer of chemical banking corp + bankamerica corp. reported a N N jump in third-quarter earnings as its <unk> recovery from nearly <unk> losses several years ago continued to be fueled by growth in consumer loans higher interest margins and negligible loan losses + for the quarter bankamerica said it earned $ N million or $ N a share compared with $ N million or N cents a share a year earlier + bankamerica spokesmen said preliminary reports indicate the company was n't <unk> affected by the tuesday earthquake + all but eight of the N branches which had some structural damage reopened yesterday for business + automated teller machine operations also were up and operating yesterday a bank spokesman said + for the first time in nearly two years bankamerica results failed to improve in consecutive quarters but the decline from the second quarter was attributable to special factors + third-quarter profit was N N below the $ N million or $ N a share earned in the N second quarter + the company cited higher tax credits in the second quarter totaling $ N million compared with $ N million in the third quarter + excluding tax credits profit was N N below the second quarter + but that drop was caused entirely by a decline in brazilian interest paid to $ N million from $ N million the second quarter + moreover bankamerica continued to build its reserve against troubled foreign loans by boosting its loan-loss provision to $ N million about the same as the previous quarter but well above the $ N million in the year-earlier quarter + the provision rate was far above bankamerica 's actual net credit losses of $ N million in the third quarter compared with $ N million in the second period and $ N million a year earlier + as a result bankamerica said its reserve against troubled <unk> loans once below N N now amounts to N N of the $ N billion of <unk> debt it <unk> it is owed by those nations + that level is about the same as some other big banks but far below the N N and N N reserves of bankers trust new york corp. and j.p. morgan & co. respectively + by any measure third-quarter earnings were still robust equivalent to a N N return on assets even excluding tax credits + by that key measure of operating efficiency bankamerica turned in a better performance than its <unk> los angeles-based competitor security pacific corp. which posted a N N return in the third quarter + but it continued to badly trail its san francisco neighbor wells fargo & co. which reported an extraordinary N N return on assets + both returns do n't include any tax credits + they bankamerica continue to show good performance said donald k. <unk> an analyst with <unk> <unk> & woods inc. san francisco + in composite trading yesterday on the new york stock exchange bankamerica common stock edged up N cents to close at $ N a share + shareholder equity improved to N N from N N in the previous quarter + the N N net interest margin or the difference between the yield on a bank 's investments and the rate it pays for deposits and other borrowings was still <unk> higher than the N N ratio a year earlier and is among the best in the industry analysts said + the high margin partly stems from continued strong growth in <unk> consumer loans which jumped N N to $ N billion from a year earlier and residential mortgages which rose N N to $ N billion + bankamerica 's total loans rose N N to $ N billion + for the nine months bankamerica profit soared N N to $ N million or $ N a share from $ N million or $ N a share + international business machines corp. will announce on tuesday a slew of software products aimed at eliminating some of the major problems involved in <unk> manufacturing operations industry executives said + many plant floors currently resemble a tower of <unk> with computers robots and machine tools that generally speak their own language and have trouble talking to each other + as a result if a problem develops on a production line it is unlikely some supervisor sitting in front of a personal computer or workstation will know about it or be able to correct it + so ibm will be announcing more than N products that will be aimed at letting even the <unk> machine tool talk to the <unk> mainframe or anything in between + in an unusual display of openness ibm also will be helping customers tie together operations that include lots of equipment made by ibm 's competitors + in addition the executives said ibm will be offering programming tools designed to let anyone working on a factory floor write <unk> software for instance to do statistical analysis that would pinpoint a problem on a manufacturing line + in armonk n.y. an ibm spokeswoman confirmed that ibm executives will be announcing some <unk> plans next week but declined to elaborate + the industry executives said that as usual with such broad announcements from ibm this one will be part reality and part strategy + so it will take many quarters for ibm to roll out all the products that customers need and it will take years for customers to integrate the products into their operations + also as usual the products will appeal mostly to heavy users of ibm equipment at least initially + still consultants and industry executives said the products could help make manufacturing operations more efficient and provide a boost to the <unk> market a market that yankee group a research firm has said may double to $ N billion by N + this is a step in the right direction said martin <unk> a yankee group analyst + he added though that a lot of this is intentions + we 'll have to wait and see how the plan develops + the announcements also should help ibm go on the offensive against digital equipment corp. on the plant floor + while ibm has traditionally dominated the market for computers on the business side of manufacturing operations and has done well in the market for design tools digital has dominated computerized manufacturing + hewlett-packard co. also has begun to gain share in the whole <unk> arena + ibm will face an <unk> climb against digital given digital 's reputation for being better than ibm at <unk> together different manufacturers ' computers + in addition hewlett-packard while a much smaller player has made a big commitment to the sorts of industry standards that facilitate those <unk> and could give ibm some problems + both can be expected to go after the market aggressively gartner group inc. a research firm estimated the digital gets N N of its revenue from the manufacturing market and hewlett-packard gets N N + ibm which gartner group said generates N N of its revenue in this market should be able to take advantage of its loyal following among buyers of equipment + that is because many companies will <unk> on certain types of equipment as the various parts of the manufacturing market merge and ibm is the biggest player + but much will depend on how quickly ibm can move + the whole idea of <unk> manufacturing <unk> seems to be making a comeback after losing a little <unk> over the past couple of years when it became apparent that it was n't a <unk> that would make u.s. plants more efficient and <unk> foreign competition + <unk> <unk> a gartner group analyst said <unk> changes may still be required to really take advantage of <unk> 's <unk> someone on the shop floor may not like having someone in an office using a personal computer to look over his shoulder for instance and may be able to prevent that from happening + but he said a system such as ibm 's should help significantly + in making polyethylene sheets out of plastic chips for instance a chip sometimes does n't <unk> gets caught in the machinery and creates a run in the sheets + that can be expensive because the problem may not be noticed for a while and the sheets are typically thrown away + but mr. <unk> said that if computers can be integrated into the process they could alert an operator as soon as the problem occurred + they could also check through the orders on file to find a customer that was willing to accept a lower grade of polyethylene + the computer would let the machine run just until that order was filled eliminating waste + this sort of improved link figures to eventually become a significant weapon for some companies + companies might be able to tell salespeople daily for instance about idle equipment so they could offer discounts on whatever that equipment produces + salespeople also could get a precise reading on when products could be delivered in much the same way that federal express has marketed its ability to tell exactly where a package is in the delivery system + ford motor co. 's merkur the company 's first new car franchise in the u.s. since the <unk> was unveiled in N now will share <unk> 's fate + ford said yesterday it will halt imports of the merkur scorpio a $ N luxury sedan built by ford of europe in west germany + the cars are sold under a separate franchise with its own sign in front of <unk> dealers as opposed to new models such as <unk> or <unk> which are sold under existing ford divisions + the move to halt imports announced N years and N months to the day after henry ford ii declared that the <unk> division and its <unk> car would be scrapped <unk> the four-year-old merkur brand in the u.s. market + it will continue to be sold in the european market + merkur 's death is n't nearly as costly to ford as was the <unk> debacle because merkur was a relatively <unk> project with limited sales goals + still merkur 's demise is a setback for ford at a time when the company 's image as the u.s. auto maker with the golden touch is showing signs of strain + the no. N auto maker 's new <unk> and mercury <unk> models have n't met sales expectations in the year since they were introduced and ford 's trucks are losing ground to their gm rivals + this fall ford introduced only one new product a <unk> version of its <unk> lincoln town car luxury model + the demise of merkur <unk> <unk> comes after a september in which N merkur dealers managed to sell only N <unk> + total merkur sales for the first nine months dropped N N from a year ago to just N cars + merkur is n't the only european luxury brand having problems in the u.s. + the japanese assault on the luxury market is rapidly <unk> such european makes as <unk> and saab which at least have clear brand images + merkur as an import on domestic car lots suffered from the same sort of image confusion that is <unk> sales of imports at general motors corp. and chrysler corp + merkur was originally aimed at <unk> into <unk> dealerships the kind of young affluent buyers who would n't be caught dead in a town car a vehicle so <unk> that ford is staging a press event next month linking the town car 's launch to the <unk> of a new aircraft carrier in norfolk va + but the brand had trouble from the start + the first merkur the <unk> went on sale in early N + the <unk> <unk> <unk> in part because american buyers did n't go for the car 's unusual <unk> rear <unk> + in may N ford began importing the scorpio sedan from west germany to sell next to a <unk> <unk> in <unk> + ford officials said they expected the two <unk> would sell about N cars a year and in N they reached that goal as sales hit N cars + it was <unk> from there however + one major factor was the decline of the dollar against the mark which began less than a year after merkur 's N launch + as the west german currency rose so did merkur prices + the merkur cars also suffered from <unk> quality some dealers say + it was like a comedy of errors says martin j. <unk> <unk> a big dealer whose star <unk> operation in <unk> mich. sold more <unk> 's than any other dealership + but by the third quarter of N <unk> had a high satisfaction rating in internal ford studies a spokesman said + apparently however the improvement came too late + last fall ford announced it would <unk> the <unk> in the u.s. at the end of the N model year + ford said then it would keep the scorpio + this year scorpio sales plummeted and at the current sales pace it would take ford N days to sell off the current scorpio inventory of about N cars + canadian pacific ltd. said it proposed acquiring the N N of soo line corp. it does n't already own for $ N a share or about $ N million after failing to find a buyer for its majority stake earlier this year + soo line said its board appointed a special committee of independent directors to study the proposal + the troubled <unk> railroad concern said the committee has the authority to hire financial and legal advisers to assist it + the proposed acquisition will be subject to approval by the interstate commerce commission soo line said + in new york stock exchange composite trading yesterday soo line shares jumped well above the proposed price closing at $ N up $ N + canadian pacific put its N N stake in soo line up for sale last year but could n't find any <unk> + canadian pacific which has interests in transportation telecommunications forest products energy and real estate finally took its majority block off the market this spring + it turned out we could n't sell it a canadian pacific official said adding that acquiring the remainder of soo line is now the best way to <unk> operations + canadian pacific is soo line 's biggest customer and has owned a majority stake in the u.s. railroad since N + canadian pacific and soo line tracks <unk> at two points in the west on the <unk> border and the two companies operate a very successful <unk> rail service + separately for the first nine months soo line reported a loss of $ N or four cents a share compared with net income of $ N million or $ N a share a year earlier + revenue fell N N to $ N million from $ N million + the company had a loss from operations of $ N million + golden nugget inc. reported a third-quarter net loss of $ N million or N cents a share based on N million common shares and <unk> equivalents outstanding + the results compare with a year-earlier net loss of $ N million or seven cents a share based on N million common and <unk> equivalents outstanding + operating revenue rose N N to $ N million from $ N million a year ago + results for the latest quarter include <unk> items of $ N million <unk> $ N million a year earlier + most of the expenses stem from the company 's huge mirage <unk> scheduled to open next month along the strip and an april N financing by units operating the downtown golden nugget property + for the nine months golden nugget reported a net loss of $ N million or N cents a share based on N million common and <unk> equivalents outstanding + the year earlier the company had a net loss of $ N million or N cents a share based on N million common shares and <unk> equivalents outstanding + the N results include a $ N million charge stemming from a litigation judgment + separately the casino operator said its board approved a plan to buy-back as many as three million common shares from time to time either in the open market or through private transactions + an additional N shares are authorized for repurchase under an earlier stock buy-back program + john <unk> an analyst with raymond james & associates said the results were n't surprising and attributed the buy-back to management 's confidence in the mirage 's ability to generate strong cash flow in N + yesterday in new york stock exchange composite trading golden nugget common closed at $ N up $ N + capital holding corp. said it requested and received the resignation of john a. franco its vice chairman as an officer and a director of the life insurance holding company + the company said mr. franco developed a plan to establish a business that might be competitive with capital holding corp. 's accumulation and investment group which mr. franco headed + the group temporarily will report to irving w. <unk> ii chairman president and chief executive officer of capital holding + mr. franco N years old said in a telephone interview that he has been considering and discussing a number of possible business ventures but that nothing is at a mature stage + he said he did n't argue with the company 's decision to seek his resignation because contemplating outside business ventures can <unk> an executive from performing his best at the job he is paid to do + martin h. <unk> a managing director of capital holding 's accumulation and investment group also resigned to pursue other business interests capital holding said + mr. <unk> N said that he had an amicable <unk> with capital holding and that he has a number of ventures in the financial-services area under consideration + he said that his resignation was a mutual decision with capital holding management but that he was n't actually asked to resign + the accumulation and investment group is responsible for the investment operations of all capital holding 's insurance businesses and markets guaranteed investment contracts to bank trust departments and other institutions + it also sells <unk> annuities to individuals + mr. <unk> said he expects to name a new group president to head that operation following the nov. N board meeting + <unk> + money market deposits a N N + a average rate paid yesterday by N large banks and thrifts in the N largest metropolitan areas as compiled by bank rate monitor + b current annual yield + guaranteed minimum N N + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + plastic pencils <unk> <unk> made their <unk> debut in children 's pencil boxes at <unk> stores in N + but few knew it then and most still think all pencils are wooden + eagle pencil of <unk> tenn. pencil city u.s.a. had made its earliest pilot plastic pencils in N + but it was n't until after it hired arthur d. little a cambridge mass. research concern that its new product was refined for commercial sale in N + three <unk> <unk> applied april N N for the patent which was assigned and awarded in N to hasbro industries then eagle 's parent + pencil <unk> <unk> and put the plastic models behind their <unk> just like traditional pencils made of <unk> strips of california <unk> <unk> filled with ceramic lead + it takes five steps to make standard pencils just one for the plastic type + automated machines <unk> long plastic <unk> with <unk> <unk> that are printed cut painted and <unk> + after more than N years something new has happened to pencils said arthur d. little in a N report that publicly described the previously secret item + eagle 's plastic type <unk> and looks like a wooden pencil + a major difference is that a snapped wooden pencil will have a <unk> break while a plastic model will break <unk> + the softness of the core <unk> the plastic models to no. N no. N or no. <unk> pencils which account for the bulk of the market + artists and <unk> need harder leads + eagle now called <unk> remains a leading company among the N in the u.s. that produced about N billion pencils last year according to the pencil makers association + it 's a trade secret how many were plastic and most writers still do n't know what they 're using + h.f. ahmanson & co. the nation 's largest thrift holding company posted a N N earnings decline for the third quarter while another large california savings and loan great western financial corp. reported a slight earnings gain + h.f. ahmanson parent of home savings of america reported third-quarter net of $ N million or N cents a share down from $ N million or N cents a share in the year-earlier period + most of the earnings decline reflected an increase in the company 's effective tax rate to N N from N N in the year-ago third quarter when nonrecurring tax credits were recorded the company said + pretax earnings declined N N + for the nine months los angeles-based h.f. ahmanson had profit of $ N million or $ N a share a N N decline from earnings of $ N million in the year-ago nine months + the company said the decline was attributable to a N N reduction in net gains on loan sales this year + third-quarter spreads widened to the highest level in two years as loan portfolio yields rose and money costs declined the company said + great western financial said third-quarter profit rose slightly to $ N million or N cents a share from $ N million or N cents a share from a year ago + great western based in beverly hills calif. is a financial services firm and parent to great western bank an s&l + great western said it had a sharp increase in margins in the recent third quarter + margins are the difference between the yield on the company 's earning assets and its own cost of funds + but a reduction in one-time gains on the sale of various assets and an increase in the company 's provision for loan losses held down the earnings gain the company said + great western 's provision for loan losses was increased to $ N million for the recent quarter compared with $ N million a year ago primarily as a result of continued weakness in various commercial and <unk> real estate markets outside california + for the nine months great western posted net of $ N million or $ N a share a N N decline from $ N million or $ N a share in the year-ago period + dun & bradstreet corp. posted a N N rise in third-quarter earnings + but revenue declined more than N N reflecting in part a continuing drop in sales of credit services in the wake of controversy over the company 's sales practices + the information company also cited the stronger dollar the sale last year of its former official airline <unk> unit and other factors + net income rose to a record $ N million or N cents a share from $ N million or N cents a share + revenue fell to $ N billion from $ N billion + in composite trading on the new york stock exchange dun & bradstreet closed yesterday at $ N down N cents a share + analysts said the results were as expected but several added that the earnings <unk> underlying weaknesses in several businesses + the quality of earnings was n't as high as i expected said eric <unk> an analyst for goldman sachs & co + for example he noted operating profit was weaker than he had anticipated but <unk> earnings of $ N million and a lower tax rate helped boost net income + dun & bradstreet said operating earnings rose N N excluding the sale of official airline <unk> + third-quarter sales of u.s. credit services were <unk> below sales of a year earlier dun & bradstreet said + as previously reported those sales have been declining this year in the wake of allegations that the company engaged in unfair sales practices that encouraged customers to <unk> services + the company has denied the allegations but has negotiated a proposed $ N million settlement of related lawsuits + analysts predict the sales impact will <unk> + there is n't much question there will continue to be a <unk> effect said john <unk> an analyst with drexel burnham lambert inc + dun & bradstreet noted that price competition in its nielsen marketing research nielsen clearing house and <unk> marketing businesses also <unk> revenue growth + it cited cyclical conditions in its moody 's investors service inc. and <unk> plan services units + for the nine months net income rose N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + year-earlier earnings reflected costs of $ N million related to the acquisition of <unk> international + revenue rose slightly to $ N billion from $ N billion + control data corp. said it licensed its airline <unk> software to the international air transport association + terms include a royalty arrangement but details were n't disclosed + the computer equipment and financial services company said <unk> a trade group will sell access to the package to its N airline members world-wide + control data will receive revenue linked to the number of passengers served by the software <unk> said + the package helps carriers solve pricing problems such as how to react to discounts offered by competitors or what would be the <unk> number of seats to offer at a given price + <unk> steel corp. said it decided to proceed with installation of automatic gauge and shape controls at its <unk> tandem cold rolling mill in <unk> pa + the new equipment which will produce steel sheet with more uniform <unk> and <unk> is likely to cost more than $ N million the company said + when the company last considered adding the equipment two years ago it estimated the cost at $ N million to $ N million but a task force will have to prepare a detailed plan before the company can predict the current cost + the time schedule for <unk> the equipment also will be developed by the task force the company said + sir richard butler <unk> chairman of <unk> <unk> ltd. was named chairman of county natwest investment management ltd. the investment management subsidiary of county natwest ltd. the investment banking arm of this british bank + sir richard succeeds john <unk> who resigned in july + sir richard is also a <unk> director at national <unk> bank and natwest investment bank ltd + in the long <unk> night after tuesday 's devastating earthquake bay area residents searched for comfort and <unk> wherever they could + some found it on the screen of a personal computer + hundreds of californians made their way to their computers after the quake and <unk> in with each other on electronic <unk> boards which link computers <unk> via phone lines + some of the most vivid <unk> came over the well a <unk> calif. board that is one of the <unk> <unk> of the electronic underground + about two-thirds of the well 's N subscribers live in the bay area + the quake knocked the well out for six hours but when it came back up it <unk> with emotional <unk> reports + following are <unk> from the electronic traffic that night + the time is pacific <unk> time and the <unk> or <unk> are those subscribers use to identify themselves + N p.m + <unk> + <unk> + i was in the <unk> on the third floor of an old building and except for my heart beat beat i 'm ok + got back to <unk> and everything had fallen broken <unk> <unk> with glass on the floor file <unk> open or dumped onto the floor + N p.m + <unk> + i was in my favorite <unk> hole waiting for the game to start + i felt the temblor begin and <unk> at the table next to mine <unk> that guilty <unk> and we both <unk> the words <unk> together + that 's usually how long it takes for the <unk> to pass + this time it just got stronger and then the building started shaking <unk> up and down as though it were a child 's toy block that was being <unk> + N a.m + <unk> + i was in the berkeley main library when it hit + endless seconds wondering if those huge windows would buckle and <unk> us with glass + only a few books fell in the reading room + then the auto <unk> shop fire sent an <unk> cloud of black smoke into the air + N a.m + <unk> + my younger daughter and i are fine + this building shook like hell and it kept getting stronger + except for the gas tank at <unk> 's <unk> service <unk> and burning in downtown berkeley things here are quite peaceful + a lot of car <unk> went off + the <unk> are fine although nervous + N a.m + <unk> + huge fire from broken gas main in the marina in <unk> + areas that are made of fill <unk> + a woman in a <unk> apartment was able to walk out the window of the third floor onto street level after the quake + the house just settled right down into the ground + N a.m + <unk> + i was driving my truck stopped at a red light at the corner of <unk> and <unk> at the <unk> border when it hit + worst part was watching power lines <unk> above my head and no way to drive away + N a.m + <unk> + was N <unk> out on a <unk> in san <unk> + it <unk> all around real dramatic + many <unk> cracks in the concrete <unk> <unk> + <unk> the damn fishing + N a.m + <unk> + i rode it out on the second floor of leo 's at <unk> and telegraph in oakland + i heard parts of the building above my head <unk> + i actually thought that i might die + i could n't decide if i should come home to <unk> because my house is on <unk> + i decided to <unk> the storm + there was a horrible <unk> of gas as i passed the chevron refinery before crossing the <unk> <unk> bridge + i could also see the clouds across the bay from the horrible fire in the marina district of san francisco + i have felt many aftershocks + my back is still in <unk> and my hands are still shaking + i think a few of the aftershocks might just be my body shaking + N a.m. + <unk> + i could see the <unk> from san francisco from my house across the bay + it 's hard to believe this really is happening + N a.m + <unk> + building on the corner severely damaged so an old lady and her very old mother are in the guest room + books and software everywhere + this being <unk> in a standing position + N a.m + <unk> + <unk> <unk> the san andreas fault + did n't feel a thing but noticed some strange <unk> behavior + duck <unk> + N a.m + <unk> + i just felt another <unk> a few seconds ago + i 'm just <unk> + N a.m + <unk> + downtown <unk> seems to be the part of town that 's worst off + no power minimal phones and a mess of <unk> wine and everything else all over the floors of the big old general store and the people 's <unk> + the <unk> move through my house every few minutes at <unk> <unk> and the mouse that 's been living in my kitchen has taken refuge under my desk + it runs out <unk> now and then and is clearly pretty <unk> + i was in <unk> beach when the quake rolled through town + at first we were <unk> + then as things got <unk> we ran for the door and spent the next few minutes outside watching the brick sidewalk under our feet <unk> up and down and the flowers <unk> in an <unk> <unk> + amazing what it does to one 's heart rate and one 's short-term memory + everyone looked calm but there was this <unk> low level of confusion as the aftershocks continued + N a.m + <unk> + power is back on and <unk> medical center seems to have <unk> down for the night they were doing <unk> out in the parking lot from the sound and lights of it + a friend of mine was in an underground computer center in downtown <unk> when the quake hit + he said that one of the computers took a <unk> trip sliding across the floor + today should be interesting as people realize how hard life is going to be here for a while + N a.m + kim + i got home let the dogs into the house and noticed some sounds above my head as if someone were walking on the <unk> or <unk> + then i noticed the car was <unk> up and down as if someone were jumping on it + i realized what was happening and <unk> into the house for the dogs + <unk> doors were flying the trash can in the kitchen walked a few feet the dogs came running and i <unk> them into the dog run and stood in the <unk> myself watching the outside trash cans dance across the concrete + when i realized it was over i went and stood out in front of the house waiting and <unk> for merrill to come home <unk> as if it were N below zero until he got there + never in my life have i been so frightened + when i saw the pictures of N and the bay bridge i began to cry + N a.m + <unk> + the <unk> district was more or less like a <unk> party all evening lots of people & dogs walking around drinking beer + N a.m + <unk> + i was just sitting down to meet with some new therapy clients a couple and the building started shaking like crazy + it 's a <unk> structure built up on supports and it was really <unk> around + the three of us stopped breathing for a moment and then when it kept on coming we <unk> for the <unk> + <unk> to say it was an interesting first session + N a.m + <unk> + albany escaped <unk> <unk> + biggest trouble was scared family who could n't get a phone line through and spent a really horrible hour not knowing + N a.m + <unk> + <unk> and i were in our back yard when the lawn started rolling like ocean waves + we ran into the house to get <unk> but the next tremor threw me in the air and bounced me as i tried to get to my feet + we are all fine here although <unk> was extremely <unk> + kitchen full of broken crystal + books and tapes all over my room + not one thing in the house is where it is supposed to be but the structure is fine + while i was standing on the lawn with <unk> waiting for another tremor i noticed that all the <unk> were emerging from the ground and <unk> across the lawn + N a.m. + <unk> + it 's amazing how one second can so completely change your life + N a.m + <unk> + i guess we 're all living very tentatively here waiting for the expected but <unk> <unk> + it 's hard to accept that it 's over and only took N seconds + i wonder when we 'll be able to relax + N a.m + <unk> + <unk> goes to total alert for flight or fight + <unk> seems a <unk> <unk> + berkeley very quiet right now + i walked along <unk> between delaware and <unk> at a few minutes before eight this morning + next to <unk> <unk> a homeless couple <unk> into a blue sleeping bag sat up said good morning and then the woman <unk> said is n't it great just to be alive + i agreed + it is + great + georgia-pacific corp. exceeding some analysts ' expectations said third-quarter earnings rose N N to $ N million or $ N a share from $ N million or $ N a share in the year-earlier period + sales increased N N to $ N billion from $ N billion + per-share earnings were enhanced by the company 's share buy-back program which reduced the average shares outstanding to N million in the quarter from N million in the same quarter of N + with strong prices in the company 's two major areas building products as well as pulp and paper analysts had expected a <unk> quarter + but the performance exceeded some estimates of around $ N a share + fueling the growth among other things were <unk> prices for certain building products + one reason efforts to protect the spotted <unk> led to restrictions on <unk> in the pacific northwest <unk> supply and forcing prices up + another reason strikes both at georgia-pacific and other lumber companies also cut supplies and raised prices analysts said + for the nine months georgia-pacific 's earnings increased N N to $ N million or $ N a share from $ N million or $ N a share + sales rose N N to $ N billion from $ N billion + in composite new york stock exchange trading georgia-pacific stock rose $ N a share yesterday to close at $ N + the house public works and transportation committee approved a bill that would give the transportation department power to block airline leveraged buy-outs despite a clear veto threat from the bush administration + the N vote clears the way for consideration on the house floor next week or the week after + transportation secretary samuel skinner in a letter to the committee warned that he would urge president bush to veto the legislation if it passed congress + the senate commerce committee already has approved similar legislation + on monday a letter from mr. skinner 's deputy <unk> <unk> said the administration opposed the legislation in its present form + some of the bill 's supporters had taken heart from the fact that the letter was n't signed by mr. skinner and that it did n't contain a veto threat + the <unk> administration warnings <unk> some lawmakers especially senior republicans who supported the bill because they thought the transportation department favored it + we backed this bill because we thought it would help skinner one republican said and now we 're out there <unk> in the wind + a few weeks ago mr. skinner testified before congress that it would be cleaner more efficient if he had authority to block buy-outs in advance + but he never took an official position on the bill and has <unk> maintained that he already has enough authority to deal with buy-outs + under the committee bill the transportation secretary would have N days and an additional N days if needed to review any proposed purchase of N N or more of a major u.s. airline 's voting stock + the secretary would be required to block an acquisition if he concluded that it would so weaken an airline financially that it would hurt safety or reduce the carrier 's ability to compete or if it gave control to a foreign interest + although the legislation would apply to any acquisition of a major airline it is aimed at transactions financed by large amounts of debt + supporters of the bill are concerned an airline might sacrifice costly safety measures in order to repay debt + the panel 's action occurs in a politically charged atmosphere surrounding recent buy-out proposals their apparent collapse and the volatile conditions in the stock market + it became apparent in hearings that there ought to be regulation of leveraged buy-outs of some sort rep. james <unk> d. minn. chairman of the house aviation subcommittee said during the panel 's deliberations + i do n't believe in the airline business you can be totally <unk> because of the high degree of public interest at stake + but mr. skinner disagreed calling the legislation a retreat from the policy of <unk> of the airline industry + in his letter to committee chairman glenn anderson d. calif. the secretary also said the bill would be at odds with the administration 's policies <unk> open foreign investment and market allocation of resources + currently the transportation department does n't have the authority to block a takeover in advance + however if the secretary concludes that a transaction has made a carrier <unk> to operate the department may revoke its certificate <unk> the airline + such authority is more than adequate say opponents of the legislation + but supporters argue that <unk> an airline is so drastic that the department would hesitate doing it + the panel rejected a proposal pushed by amr corp. the parent of american airlines to allow the transportation secretary to block corporate raiders from <unk> proxy fights to oust boards that oppose a leveraged buy-out + it also voted down proposals to give the secretary much more discretion on whether to block a buy-out and to require the department to consider the impact of a buy-out on workers + london shares rallied to post strong gains after initial fears <unk> that the california earthquake would depress wall street prices + tokyo stocks which rebounded strongly tuesday extended their gains yesterday but most other asian and pacific markets closed sharply lower + in london the financial times-stock exchange 100-share index jumped N points to close at its intraday high of N + the index was under pressure for most of the morning over concerns that the effects of tuesday night 's major earthquake in the san francisco area would undermine the u.s. market + the mood changed after dealers <unk> the direct impact of the disaster on shares and wall street rebounded from early losses + the financial times 30-share index settled N points higher at N + volume was N million shares the <unk> of a hectic week compared with N million tuesday + u.k. composite or <unk> insurers which some equity analysts said might be heavily hit by the earthquake disaster helped support the london market by showing only narrow losses in early trading + the insurers ' relative resilience gave the market time to <unk> the impact of the california disaster on u.k. equities dealers said + dealers said the market still has n't shaken off its nervousness after its <unk> ride of the past several sessions caused by interest-rate increases last week and wall street 's N N plunge friday + but technical factors including modest gains in the value of the pound helped draw buying back into the market and reverse losses posted a day earlier + among composite insurers general accident rose N pence to # N $ N a share guardian royal climbed N to N pence sun alliance rose N to N and royal insurance jumped N to N + life insurers fared similarly with legal & general advancing N to N although prudential fell N to N N + <unk> group rose N to N and sun life finished unchanged at # N + most banking issues retreated after a sector downgrade by warburg securities although national <unk> showed strength on positive comments from brokerage firms about its long-term prospects + natwest the most actively traded of the banks finished at N up N + b.a.t industries fell in early dealings but recovered to finish at N up N + dealers said the market was nervous ahead of a special b.a.t holders ' meeting today + the session is to consider a defensive plan to spin off assets to fend off sir james goldsmith 's # N billion bid for b.a.t + the recent stock market drop has shaken confidence in the plan but dealers said the shares fell initially on questions about whether mr. goldsmith 's highly leveraged bid will come to <unk> + trading was suspended in wcrs group a u.k. advertising concern pending an announcement that it is buying the remaining N N of france 's carat holding for N billion french francs $ N million and expanding commercial and equity ties with advertising group eurocom + merchant banker morgan grenfell climbed N to N on renewed takeover speculation + <unk> warburg also mentioned in the rumor mill jumped N at to N + jaguar advanced N to N as traders contemplated a potential battle between general motors and ford motor for control of the u.k. luxury auto maker + tokyo 's nikkei index of N issues rose N points or N N to N + the index gained N tuesday + volume was estimated at N million shares compared with N million tuesday + declining issues outnumbered advancers N with N unchanged + the tokyo stock price index of all issues listed in the first section which gained N tuesday was up N points or N N at N + in early trading in tokyo thursday the nikkei index rose N points to N + on wednesday shares were pushed up by <unk> buying on the part of investment trusts as well as small orders from individuals and corporations traders said + institutions meanwhile stepped back to the sidelines as the direction of u.s. interest rates remained unclear + the uncertainty was <unk> by the persistent strength of the dollar traders said and by the u.s. trade deficit which widened by N N in august from the previous month + traders and analysts said they did n't see any effect on tokyo stocks from the california earthquake + the impact on japanese insurers and property owners with interests in the san francisco area is still being assessed they said + buying was scattered across a wide range of issues making the session fairly <unk> traders said + with uncertainty still hanging over interest rates and the dollar the market failed to find a focus that might lead to further investor commitments they said + some traders said the popularity of issues that gained yesterday wo n't last long as investors will <unk> their buying choices over the short term + interest <unk> shares such as steel construction and electric utility companies which rose early in the week saw their advance weaken yesterday + traders said these issues need <unk> buying to push up their prices so substantial gains are n't likely unless institutional investors participate + an outstanding issue in yesterday 's session was mitsubishi <unk> which surged N to N yen $ N a share + its popularity was due to speculation about the strong earnings potential of a new type of plastic wrap for household use a trader at county natwest securities japan said + some <unk> food issues attracted <unk> traders said + <unk> brewery was up N at N and <unk> gained N to N + pharmaceuticals were mostly higher with <unk> pharmaceutical gaining N to N + shares closed lower in other major asian and pacific markets including sydney hong kong singapore taipei wellington seoul and manila + most of those markets had rebounded the day before from monday 's slide + but unlike the tokyo exchange they failed to extend the rise to a second session + elsewhere prices surged for a second day in frankfurt closed higher in zurich stockholm and amsterdam and were broadly lower in milan paris and brussels + south african gold stocks ended marginally firmer + in brussels it was the first trading day for most major shares since stocks tumbled on wall street friday + trading had been <unk> by a major computer failure that took place before the start of monday 's session + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + housing construction sank in september to its lowest level since the last recession the commerce department reported + work began on homes and apartments at an annual rate of N units last month down N N from august the department said + the september decline followed an even <unk> drop of N N in august and left housing starts at their weakest since october N when the country was <unk> the end of a recession + originally the department had reported the august decline as N N + the numbers suggest that the housing industry is still suffering the effects of the federal reserve 's battle against inflation + the industry had shown signs of recovery this summer after the central bank began to relax its <unk> on credit allowing interest rates to drop a bit after pushing them up for a year + sales of new homes rose and inventories of houses which had been climbing dropped + but last month new construction in all types of homes <unk> from single-family houses to large apartment <unk> + it 's pretty much weak across the board said martin <unk> chief economist of the national council of savings institutions + mr. <unk> said the industry may be reluctant to step up building at the moment for fear the inventories of <unk> homes will increase again + another reason for the weakness he said may be that mortgage rates have hit a <unk> since they began <unk> down after a peak in march + in august rates on 30-year fixed-rate mortgages started creeping up a bit but they inched down again through september + rates have n't really <unk> off that much mr. <unk> said + we 've kind of settled now into an interest-rate environment that 's fairly high + work was begun on single family homes the core of the housing market at an annual rate of N in september a drop of N N from the previous month + that followed a N N decline in august + construction of apartments and other <unk> <unk> slipped N N to an annual rate of N following a N N decline in august + the number of building permits issued for future construction dropped N N to a N annual rate after rising N N in august + all the numbers were adjusted for normal seasonal variations in building activity + the housing starts numbers however are one of the least precise of the government 's economic indicators and are often revised significantly as more information is collected + shearson lehman hutton holdings inc. posted a sharp third-quarter turnaround from a year earlier but net income would have dropped from the second quarter without a $ N million after-tax gain + the securities firm posted third-quarter net of $ N million or N cents a share compared with a restated year-earlier loss of $ N million or N cents a share + revenue climbed N N to $ N billion from $ N billion + the latest period included the gain which was $ N million before tax from the previously announced sale of the institutional money management business of lehman management co + the N period was restated from net income of $ N million to correct an <unk> in the company 's boston co. subsidiary + in the N second quarter shearson had net income of $ N million or N cents a share + an average N million common shares were outstanding in the latest quarter up from N million + in new york stock exchange composite trading yesterday shearson shares lost N cents to $ N + the company said the improved performance from a year ago reflects higher commissions and revenue from <unk> and trading for its own account + commission revenue was $ N million up N N + but industrywide trading activity slowed in september as institutional investors turned cautious and individuals continued to shy away from the market + investment banking revenue fell N N to $ N million in part reflecting the continued slowdown of the underwriting business + in the nine months net fell N N to $ N million or N cents a share from $ N million or $ N a share + revenue advanced N N to $ N billion from $ N billion + two major drug companies posted strong third-quarter earnings in line with profits already reported by industry leaders and analysts ' expectations + but pfizer inc. based in new york reported flat earnings + schering-plough corp. based in madison n.j. reported a N N rise in earnings as american home products corp. of new york posted an N N increase in net + american home products + american home products said sales and earnings for the third quarter and nine months were at record levels + sales for the third quarter increased N N to $ N billion from $ N billion + sales of health-care products increased N N in the third quarter based in part on strong sales of prescription drugs such as <unk> an <unk> drug and sales of the company 's <unk> formula + american home products said net income benefited from a lower effective tax rate reflecting a reduction of foreign tax rates and additional operations in puerto rico + net also was aided by a gain on the sale of the company 's equity interests in south africa effective sept. N + in new york stock exchange composite trading yesterday american home products closed at $ N a share down N cents + pfizer + pfizer said third-quarter sales increased N N to $ N billion from $ N billion + the company said net income was flat because of investment in research and development and costs related to <unk> of several products + the company said the dollar 's continued strengthening reduced world-wide sales growth by three percentage points + pfizer posted its largest gains in healthcare sales up N N and consumer products up N N + sales by the specialty chemicals and materials science segments were flat and sales by the agriculture segment declined N N + in the health-care segment pharmaceutical sales increased N N and sales of hospital products increased N N + during the quarter pfizer received federal approval of <unk> <unk> a <unk> channel <unk> approved for both <unk> and <unk> and <unk> <unk> used to open <unk> <unk> arteries + in new york stock exchange composite trading yesterday pfizer closed at $ N a share up N cents + schering-plough + schering-plough said sales gained N N to $ N million from $ N million + in the period the company completed the sale of its european cosmetics businesses sold a majority interest in its brazilian affiliate and announced the reorganization of its over-the-counter drug businesses into a new unit schering-plough health care products + these actions did n't affect results because the gain on the sale of the european cosmetics businesses was offset by provisions relating to the brazil divestiture and drug restructuring + u.s. pharmaceutical sales rose N N led by <unk> <unk> and cold products <unk> products <unk> and <unk> products and cardiovascular products + world-wide consumer product sales declined N N primarily because of the european cosmetics sale + significantly lower sales of stay trim diet aids also were a factor in the drop + the <unk> beauty product line had higher sales following a sluggish first half + in big board composite trading schering-plough shares fell N cents to close at $ N + swedish auto and aerospace concern saab-scania ab said it received a N million <unk> $ N million order from swiss <unk> one of europe 's leading regional air companies for five saab <unk> <unk> <unk> aircraft + it is quite unfortunate that you failed so <unk> in reporting the hurricane hugo disaster + your sept. N page-one article charleston lost quite a lot to hugo especially <unk> leaves the impression that the storm was little more than an <unk> + the damage reported focused on a select few who owned <unk> historic homes on the battery + not mentioned were the N people <unk> homeless and the more than N out of work for an <unk> period the $ N <unk> in losses to homes and personal property on the barrier islands the near and long-term impact on the state 's largest industry tourism not to mention the human suffering + in <unk> on the disruption of a few proud local customs such as the historic homes tour and the damage to the <unk> your reporter served to only <unk> an <unk> and <unk> <unk> view of this otherwise thriving port city + the damage will undoubtedly prove to be one of the <unk> human and economic disasters of the decade in this country + david m. <unk> + columbia s.c + your story was <unk> and <unk> + <unk> the people of a <unk> city reeling from a disaster of unprecedented <unk> was at the very best <unk> under the circumstances + your narrow focus appears to be a <unk> attempt to show the people of that historic city to be <unk> <unk> + you had to have been blind not to see the scenario there for what it was and is and will continue to be for months and even years a part of south carolina that has sustained a blow that the red cross expects will cost that organization alone some $ N million + william c. <unk> jr + columbia s.c + charleston is historic and <unk> as your reporter said but not <unk> as he suggested + <unk> are instead <unk> and have contributed <unk> to the culture and history of our country for more than N years + i suggest your reporter see charleston next spring in its full glory + william c. stuart iii + silver spring md + affiliated <unk> of colorado inc. said it agreed to sell its N N interest in rocky mountain <unk> systems for $ N million to colorado national bank of denver and central bank of denver + colorado national is a unit of colorado national <unk> inc. and central is a unit of first bank system of minneapolis + affiliated said it expects to record a pretax gain of about $ N million from the sale of the credit-card business which should more than offset any reduction in the carrying value of real estate and real-estate loans on its books + the u.s. <unk> bank tentatively decided to guarantee commercial bank financing for the purchase of two boeing co. N <unk> by <unk> colombia 's international airline at a cost of about $ N million + the loan guarantee would amount to about $ N million or N N of the cost of the aircraft + because of the size of the proposed loan guarantee the <unk> bank 's preliminary commitment is subject to review by the house and senate banking committees + <unk> bank officials said this review process currently is under way + <unk> guzman cabrera took over the oil workers union mexico 's most powerful labor organization only last january + but even in that short time mr. guzman cabrera has become as controversial in his own way as his <unk> predecessor <unk> <unk> <unk> known as la quina + president carlos salinas de <unk> used the army to oust la quina who <unk> for N years over a <unk> empire that made <unk> <unk> <unk> or pemex one of the world 's most inefficient oil companies + now mr. guzman cabrera is facing accusations that he 's as much a company man as la quina was a <unk> + in recent contract negotiations with pemex management mr. guzman cabrera accepted major concessions that greatly curtail the union 's role in <unk> long a source of millions of dollars in <unk> earnings + and with the quiet <unk> of mr. guzman cabrera replacing the <unk> <unk> of la quina government <unk> have been given a free hand to open the petrochemical sector to wider private and foreign investment + mr. guzman cabrera 's new order has n't arrived without resistance + <unk> between union <unk> still <unk> at pemex installations + leftist leader <unk> <unk> publicly questioned mr. guzman cabrera 's moral quality suggesting he is part of a conspiracy to turn over the country 's oil a symbol of mexican <unk> to foreigners + the <unk> mr. guzman cabrera takes such criticisms in <unk> + this is n't a new kind of union leadership it 's a new mexico + we 're no longer afraid of <unk> with private or foreign capital he says + pemex which produces N N of government revenue desperately needs new investment + since world oil prices collapsed in N the government has <unk> pemex 's <unk> to make payments on mexico 's $ N billion foreign debt + little money has been returned to upgrade pemex 's aging facilities + while the government <unk> pemex from above the union has <unk> it from below + a bloated payroll and pervasive <unk> caused pemex 's operating costs to balloon to N cents of each $ N in sales far above the industry <unk> + the declines in investment and efficiency explain in part why mexico has been importing gasoline this year + some projections show mexico importing crude by the end of the century barring an overhaul of operations + whatever you tried to change whether it was cutting costs or attracting new partners the big obstacle was the old union leadership says oil consultant george baker + enter mr. guzman cabrera who has a clear understanding of where union leaders fit in the <unk> regime of president salinas + i 'm the <unk> if there is one he says <unk> a <unk> to his office + beginning as a <unk> in a refinery mr. guzman cabrera put in more than N years at pemex before being pushed into retirement by la quina after a dispute two years ago + though he also long benefited from the system built by la quina mr. guzman cabrera says union <unk> had simply gotten out of hand + they are at the base of all of the problems of corruption he says + thus in recent contract negotiations mr. guzman cabrera gave up the union 's right to <unk> N N of all of pemex 's outside contracts an enormous source of <unk> + the union also <unk> the N N commission it had received on all pemex maintenance contracts + the union will keep a N N commission on construction projects + the new contract also <unk> the $ N monthly coupon good only at <unk> grocery stores that was part of the salary of every worker from <unk> to chief executive + about N technical workers notably <unk> and lawyers were switched to <unk> status + also because of its reduced capital budget pemex has phased out about N <unk> construction workers reducing the work force to about N the union leader says + mr. guzman cabrera says the union 's <unk> will be offset by a wage and benefit package that amounts to a N N increase in compensation + but pemex managers are the ones most <unk> by the contract + we are <unk> the instruments of administration says <unk> <unk> a pemex <unk> + pemex officials would n't say how much money the new contract would save the company but one previous government estimate pegged savings at around $ N million a year + pemex 's customers also are pleased with the company 's new spirit + <unk> <unk> a big conglomerate has long depended on pemex petrochemicals to produce plastic <unk> material + but when the pemex plant shut down for an annual overhaul it would never give notice to its customers + the <unk> would completely disrupt our operations says <unk> <unk> <unk> <unk> 's finance director + this year for the first time <unk> and other customers were <unk> well in advance of the pemex plant 's shutdown to ensure minimal <unk> + <unk> the union <unk> previous moves by the government to attract private investment in petrochemicals which mexico has been forced to import in large quantities in recent years + in may the government unveiled new foreign investment regulations that create special trusts allowing foreigners long limited to a N N stake in secondary petrochemical companies to own up to N N + later the government <unk> several basic petrochemicals as secondary products + but pemex 's <unk> with private companies and especially foreign ones is controversial in a country where oil has been a symbol of national sovereignty since foreign oil holdings were <unk> in N + they are preparing the workers for what 's coming foreign control wrote <unk> <unk> a leftist leader + mr. guzman cabrera and government officials insist that foreigners will be limited to investing in secondary petroleum products + but the new union leader makes no <unk> for pemex 's more <unk> attitude + if we do not integrate into this new world of <unk> sooner or later we 're going to become victims of our own <unk> he says + couple counseling grows to <unk> stress + more executives and their spouses are seeking counseling as work and family pressures mount + some employers <unk> <unk> especially if work problems threaten a top manager 's job + many couples are like ships passing in the night a communications gulf that <unk> problems on the job and at home says <unk> harry <unk> + his <unk> institute in <unk> mass. has seen in recent years a doubling in the number of executives and spouses at its <unk> counseling program + employers foot the bill he says figuring what 's good for the couple is good for the company + one east coast manufacturing executive faced with a job transfer his wife <unk> found that counseling helped them both come to <unk> with the move + and the vice president of a large midwestern company realized that an <unk> <unk> threatened his career when his wife <unk> that similar behavior at home <unk> their marriage + more <unk> couples also are getting help with men increasingly bringing their working wives for joint counseling + the level of stress for a woman is often so high it 's the husband who says i 'm worried about her says <unk> <unk> <unk> <unk> + her institute for family and work relationships in la jolla calif. has noted a doubling in the number of couples seeking help the past two years + no matter how competent and smart you both are the relationship almost certainly will erode if you do n't have time to talk to have fun and to be sexual says ms. <unk> + she urges client couples to begin a <unk> period <unk> social and other <unk> activities and setting time apart for themselves + putting those times on the calendar she says is as important as <unk> business appointments + power of suggestion stronger in japan + here 's one more explanation for why japan is a tough industrial competitor two of three japanese employees submit suggestions to save money increase efficiency and boost morale while only N N of american workers do + and the japanese make far more suggestions N per N eligible employees vs. only N per N employees in the + data for N from the national association of suggestion systems and the japan human relations association also indicate that japanese employers adopt four of five suggestions while their u.s. counterparts accept just one in four + in japan small suggestions are encouraged + each new employee is expected to submit four daily in the first few months on the job + u.s. companies tend to favor suggestions that go for the home runs says gary <unk> vice president of corporate quality at control data corp + that helps explain why american employers grant an average award of $ N per suggestion while japan 's payment is $ N + still suggestions ' net savings per N employees is $ N in japan vs. $ N in the u.s. + u.s. companies developing management teams are <unk> with how to handle individual suggestion systems + control data for one plays down its employee suggestion program because it favors the <unk> focus + merger fallout <unk> employee dishonesty + corporate security directors increasingly worry that merger mania <unk> a rise in employee dishonesty + a security magazine survey places the effect of takeovers and buy-outs among the industry 's N biggest challenges + if it causes management to take their eye off the ball inventory <unk> is going to be affected says lewis <unk> vice president for loss prevention at marshall field 's the department store chain + a separate study of the extent of employee misconduct linked general job satisfaction to property loss + co-author richard <unk> cites what happened at one <unk> company absorbed by a foreign giant + <unk> climbed dramatically as many angry employees felt abandoned by the former owners says the university of florida sociologist + but top management should watch for other <unk> signs of employee <unk> like <unk> <unk> and phone <unk> + security consultant dennis <unk> of <unk> calif. thinks mergers often trigger longer lunch hours and increased <unk> conduct which can <unk> the bottom line more than <unk> + new management can take several steps to reduce dishonesty + most important experts say is to show that a company 's ethical tone is set at the top + mr. <unk> also recommends that the chief executive establish a rumor control center and move swiftly to bolster morale + consultant john <unk> of <unk> texas urges that top management adopt a tough <unk> approach with very tight controls and monitoring + and security authority robert l. <unk> favors <unk> all employees who <unk> + firms walk fine line in distributing profits + are corporate profits distributed fairly + a survey by <unk> <unk> & <unk> a new york consulting firm <unk> the difficulty for top management in satisfying employees and investors on that score + nearly seven of N investors think companies reinvest too little of their profits in the business + and half the employees surveyed think companies dole out too little to them + but both see a common enemy about N N of employees and N N of investors think senior managers get too big a <unk> of the profit pie + bank of new york co. said it agreed in principle to acquire the credit-card business of <unk> first city <unk> of texas for between $ N million and $ N million + the move subject to a definitive agreement is part of a trend by <unk> banks that have been buying up credit-card portfolios to expand their business + just last month a bank of new york subsidiary agreed to buy the credit-card operation of dreyfus corp. 's dreyfus consumer bank for $ N million a transaction that is expected to be completed by the end of the year + first city 's portfolio includes approximately N accounts with about $ N million in loans outstanding + first city which issues both <unk> and visa cards has agreed to act as an agent bank + at the end of the third quarter bank of new york 's credit-card business <unk> of N million accounts with $ N billion in loans outstanding + bank of new york is currently the <unk> issuer of credit cards in the + first city said that because of increased competition in the credit-card business it had decided it either had to expand its own holdings substantially or sell them + we think there 's a good prospect that competition is going to get pretty fierce in this market said james e. day a first city vice president + we see it becoming a <unk> kind of business + the company estimated that the transaction would enhance its book value which stood at $ N a share on sept. N by more than $ N million or about $ N a share + the company also said the transaction would bolster after-tax earnings by $ N a share when completed and boost its primary capital ratio to N N from N N + first city which recently purchased three small texas banking concerns said it would use the proceeds to pursue additional expansion opportunities in the southwest and elsewhere + with that possibility in mind analysts said the transaction was a positive move for first city + i think they 'll be able to move faster to make acquisitions in texas said <unk> <unk> an analyst with donaldson lufkin & jenrette + that 's something they can do very well + british airways plc said it is seeking improved terms and a sharply lower price in any revised bid for united airlines parent ual corp. following the collapse of a $ N billion $ 300-a-share buy-out bid + <unk> stevens british air 's chief financial officer told dow jones professional investor report a price of $ N a share is certainly not too low and indicated his company would like to reduce the size of its $ N million cash investment + he added the airline is n't committed to going forward with any new bid and has n't participated in bankers ' efforts to revive the transaction that collapsed + we 're in no way committed to a deal going through at all + we 're not rushing into anything + we do n't want to be party to a second rejection he said adding that coming up with a revised offer could easily take several weeks + mr. stevens 's remarks confirming a report in the wall street journal that british air wants to start from <unk> in any new bid for the nation 's second-largest airline helped push ual stock lower for the fourth straight day + ual fell $ N a share to $ N on volume of N million shares in composite trading on the new york stock exchange as concern <unk> among takeover stock traders about the length of time it will take to revive the purchase + under the original buy-out approved by the ual board sept. N ual 's pilots planned to put up $ N million in cash and make $ N million in annual cost concessions for a N N stake + ual management was to pay $ N million for N N and british air was to receive a N N stake + the buy-out fell through when citicorp and chase manhattan corp. unexpectedly failed to obtain bank financing + since then ual stock has fallen N N in what may rank as the largest collapse of a takeover stock ever + the <unk> of mr. stevens 's remarks seemed to indicate that british air will take a more active <unk> role in pursuing any new bid + he said he believes ual management was badly advised on the funding of its original transaction + mr. stevens said british air has n't received any new buy-out proposals from the labor-management group led by ual chairman stephen wolf and has n't received any indication of when one might be <unk> + as far as we 're concerned we 're waiting for the dust to settle he said + although british air is waiting to see what the buy-out group comes up with mr. stevens said a revised transaction with less debt leverage is likely to be more attractive to banks + he said the original proposal is dead and all aspects of a revised version are up for change in light of the changes in ual 's market price the amount of debt banks are willing to fund and the price british air would be willing to pay + mr. stevens said he expects the new price will be considerably lower but declined to specify a figure + asked whether a $ <unk> figure circulating in the market yesterday is too low he said it 's certainly not too low + he added the original offer was a pretty full price and that british air 's contribution was quite a large chunk for us + british air was originally attracted to the chance of obtaining a N N stake in the company but was n't particularly happy with paying $ N million + if the new deal had us putting up less money but still having N N that would be a point in our favor he said + in any new proposal british air would expect a greater rate of return than the <unk> in the original proposal + in the event that the buy-out group <unk> in <unk> its bid the ual board could remain under some pressure to seek another transaction even without any legal obligation to do so + roughly one-third of its stock is believed held by takeover stock traders who could vote to oust the board if they become <unk> + meanwhile the buy-out group 's task of holding its fragile coalition together in the face of the bid 's collapse and internal opposition from two other employee groups has been further complicated by an apparent <unk> in the ranks of the pilot union itself + a pilot representing a group of N pilots hired during united 's N strike filed suit friday in chicago federal court to block the takeover + the dissident pilots oppose the plan because it would cause them to lose their seniority + ual 's management agreed to reduce the seniority of those pilots in exchange for the support of the united pilot union for the buy-out proposal + the N pilots involved in the suit are n't members of the union + the airline had allowed them to move ahead of some union members in seniority following the N strike a move the union had contested in a previous lawsuit + <unk> <unk> contributed to this article + corporate efforts to control health-care costs by requiring <unk> prior to planned <unk> and surgery have n't been sweeping enough to reduce the long-term rate of cost increases according to a study by the institute of medicine + in the last decade many corporations have embraced the utilization management cost <unk> strategy as a way to control health-care costs for employees + these programs vary widely but often require second opinions on proposed surgery <unk> reviews of <unk> <unk> and reviews of treatment during <unk> or recovery periods + between N N and N N of today 's workers are covered by such plans up from N N five years ago + although it probably has reduced the level of expenditures for some purchasers utilization management like most other cost <unk> strategies does n't appear to have altered the long-term rate of increase in health-care costs the institute of medicine an affiliate of the national academy of sciences concluded after a two-year study + employers who saw a short-term <unk> in benefit expenditures are seeing a return to previous trends + while utilization management frequently reduces <unk> costs these savings are often offset by increases in <unk> services and higher administrative costs according to the report by a panel of health-care experts + the report suggested that current review programs are too narrow + the unnecessary and inappropriate use of the hospital and not the actual need for a particular procedure has been the main focus the panel said + as a general rule <unk> programs have not made <unk> <unk> of the <unk> costs of alternative <unk> or sites of care + the report said that utilization management should have more of an impact as federal research on the effectiveness of medical <unk> helps lead to medical practice guidelines + howard <unk> a panel member and a vice president of aetna life & casualty said that utilization management will also do a better job of containing costs as it spreads to cover medical services delivered outside of hospitals + there 's pretty good evidence that utilization management has reduced inappropriate <unk> he said + but at the same time spending on physician services and <unk> care have <unk> + it 's like <unk> a balloon dr. <unk> said + david <unk> of a. foster <unk> & co. said that clients of his consulting firm report that utilization management reduces their hospital care bills by about N N but he agreed that for the health-care system as whole some of these savings are offset by administrative and <unk> care costs + jerome <unk> chairman of the panel agrees that administrative costs of utilization management programs can be high + you have a whole staff standing ready to evaluate the <unk> of recommended treatment he said + dr. <unk> who also is president of new england medical center hospitals in boston noted that the hospitals he runs deal with more than N utilization management firms and that many of them have different procedures and requirements + the panel urged greater efforts to reduce the <unk> <unk> and cost of utilization review + utilization management needs to better demonstrate that it reduces the <unk> use of resources improves the <unk> of patient care and imposes only reasonable burdens on patients and <unk> the panel concluded + renault and daf trucks <unk> announced a preliminary agreement to jointly manufacture a line of trucks in britain and france + <unk> <unk> a renault managing director said the new line will cover trucks of between N tons and N tons and will be built at renault 's <unk> plant in france and at daf 's british plant + the french state-controlled auto group and the dutch truck maker plan to <unk> the new trucks into their product lines when they begin production toward the middle of the 1990s + mr. <unk> said he expects a definitive agreement between the two companies to be completed in the next few months + the venture is the latest example of the trend toward cooperative projects in europe ahead of the N deadline for eliminating trade barriers within the european community + renault and daf are expected to invest a total of about three billion french francs $ N million in the venture including <unk> N billion for design and development costs + in addition the companies will each spend about <unk> N billion on <unk> up their plants + mr. <unk> said the joint venture represents considerable savings for both renault and daf since both companies would in any case have had to renew their existing ranges of light goods vehicles + by <unk> their resources the two groups have effectively <unk> the design and development costs that would otherwise have been <unk> he said + renault officials said the potential european market for light trucks in the <unk> to <unk> range is between N and N vehicles annually and renault and daf are aiming for a combined market share of about N N + both renault and daf will have world-wide marketing rights for the new range of vans and light trucks + under a separate arrangement british aerospace plc 's <unk> group plc subsidiary will also be able to offer the vehicles through its dealers in the u.k. and renault 's <unk> subsidiary renault vehicles <unk> will have similar rights in france + daf is <unk> by british aerospace with a further N N held by the dutch state-owned chemical group <unk> <unk> + the van <unk> family of the netherlands holds an additional N N of daf 's capital + the federal reserve system is the standard object of suggestions for <unk> and institutional changes for two reasons + first its position in the government is <unk> + it has an unusual kind of independence from elected officials and still has authority over one of the most powerful of government 's instruments the control of the money supply + thus we have a condition that is easily described as <unk> + second the responsibilities of the federal reserve as guardian of the currency which means as guardian of the stability of the price level sometimes lead it to take measures that are unpopular + as former fed chairman william <unk> martin used to say they would have to take the <unk> bowl away just as the party is getting interesting + so the federal reserve is an attractive target for complaint by politicians + the fed is easily assigned the blame for <unk> like high interest rates or slow economic growth while the politicians can escape responsibility by pointing to the fed 's independence + this leads to proposals for reform of the fed which have the common feature of making the fed more responsive to the administration to the congress and to public opinion without however any assumption of additional responsibility by the politicians + these proposals include changing the term of the chairman <unk> the terms of the members eliminating the presidents of the federal reserve banks from the <unk> process putting the secretary of the treasury on the federal reserve board having the fed <unk> by an arm of congress the general accounting office putting the fed 's expenditures in the budget and requiring prompt publication of the fed 's minutes + some of these ideas are again under consideration in congress + but these proposals do not rest on a view of what the fed 's problem is or if they do they rest on an incorrect view + they would not solve the problem they would make it worse + the problem is not that the fed is too <unk> to the public interest + on the contrary it is too responsive to an incorrect view of the public interest + the price level in the u.s. is now about N N times as high as it was N years ago + on average something that cost $ N N years ago now costs $ N + or a wage that was $ N N years ago would buy only $ N worth of stuff today + on two occasions the inflation rate rose to more than N N a year + in each case the ending of this <unk> inflation caused a severe recession the two worst of the postwar period + the enormous inflation over the past N years was largely due to monetary policy + at least it would not have happened without the support of monetary policy that provided for a <unk> increase in the money supply during the same period + and that increase in the money supply would not have happened without the consent of the federal reserve + the basic problem of monetary policy to which reform of the fed should be addressed is to prevent a <unk> of this experience + there were two general reasons for the <unk> monetary policy of the past N years + N to some extent the federal reserve shared the popular but incorrect view that <unk> monetary policy could yield a net improvement in employment and output + N even where the fed did not share this view it felt the need to accommodate to it + despite all the formal provisions for its independence the fed seems constantly to feel that if it uses its independence too freely it will lose it + the common proposals for <unk> the fed would only make the situation worse if they had any effect at all + putting the secretary of the treasury on the board of governors one of the leading proposals today is an example + the secretary is the world 's biggest <unk> of money + he has a <unk> constant <unk> for lower interest rates + moreover he is a political agent of a political president who naturally gives extraordinary weight to the way the economy will perform before the next election and less to its <unk> health + these days the secretary <unk> the further <unk> that he is a member of a club of seven finance ministers who meet occasionally to decide what exchange rates should be which is a diversion from the real business of the federal reserve to stabilize the price level + how should a reasonable member of the federal reserve board interpret a congressional decision to put the secretary on the board + could he <unk> interpret it as encouragement for the fed to give primary emphasis to stabilizing the price level + or would he interpret it as instruction to give more weight to these other objectives that the secretary represents low interest rates <unk> economic expansion and <unk> of exchange rates at internationally managed levels + the answer seems perfectly clear + true a succession of fed chairmen has given color to the notion that the secretary of the treasury belongs on the fed + by their constant <unk> to advise all and <unk> about federal budgetary matters the chairmen have encouraged the belief that fiscal policy and monetary policy are <unk> of a common <unk> in which case it is natural that the fed and the treasury and probably also the congress should be jointly engaged in <unk> the pot + the fed 's case for its own independence would be a little stronger if it were more <unk> of the independence of the rest of the government + the fed 's problem is not that it is too independent or too <unk> + the fed is responsive to and can not help being responsive to the more <unk> political part of the government + the fed exercises a power given to it by congress and the president + but congress and the president accept no responsibility for the exercise of the power they have given the fed + critics of the present arrangement are correct to say that it is <unk> + what is <unk> is the <unk> of the more political parts of the government to take the responsibility for deciding the basic question of monetary policy which is what priority should be given to stabilizing the price level + to leave this decision to an independent agency is not only <unk> + it also prevents the conduct of a policy that has a long-term rationale because it leaves the fed <unk> about what are the expectations of its masters the politicians who have never had to consider the long-term consequences of monetary policy + the greatest contribution congress could make at this time would be to declare that stabilizing the price level is the primary responsibility of the federal reserve system + legislation to this effect has been introduced in congress in this session by rep. stephen neal d. n.c + it is not the kind of thing that is likely to be enacted however + congress would be required to make a hard decision and congress would much prefer to leave the hard decision to the fed and retain its rights of complaint after the fact + people will say that the nation and the government have other objectives in addition to stabilizing the price level which is true + but that is not the same as saying that the federal reserve has other objectives + the government has other agencies and instruments for pursuing these other objectives + but it has only the fed to pursue <unk> stability + and the fed has at most very limited ability to contribute to the achievement of other objectives by means other than by stabilizing the price level + the two objectives most commonly thought to be legitimate competitors for the attention of the fed are high employment and rapid real growth + but the main lesson of economic policy in the past N years is that if the fed <unk> with the <unk> objective in the pursuit of these other goals the result is not high employment and rapid growth but is inflation + a former chairman of the president 's council of economic advisers mr. stein is an american enterprise institute fellow + republic new york corp. joined the list of banks boosting reserves for losses on loans to less-developed countries setting out a $ N million provision and posting a $ N million third-quarter net loss as a result + the per-share loss was $ N + in the year earlier period the new york parent of republic national bank had net income of $ N million or $ N a share + excluding the provision republic earned $ N million up N N from a year ago + the bank 's <unk> and long-term loans to less-developed countries total $ N million of which $ N million are n't <unk> interest the bank said + republic 's total of nonperforming assets was $ N million at sept. N with its reserve for loan losses now standing at $ N million + abortion-rights advocates won last week 's <unk> but the war over the nation 's <unk> social question is about to pick up again on turf that favors those seeking to restrict abortions + strict new regulations seem certain to pass the state house in pennsylvania next week with easy approval by the senate and by democratic gov. bob <unk> expected shortly thereafter + legislation to require the consent of parents before their daughters under the age of N can have abortions will probably pass both houses of the michigan legislature and set up a <unk> battle to override the expected veto of democratic gov. james <unk> + the short-term shift in the political climate surrounding abortion reflects two factors that are likely to govern the debate in the next several months the <unk> of the abortion-rights movement as a potent force after years of <unk> and the ability of each side to counter the other 's advance in one arena with a victory of its own elsewhere + the action in pennsylvania for example will follow last week 's collapse of a special session of the florida legislature to enact restrictions on abortions in that state and the vote here in washington by the house to permit federally paid abortions for poor women who are victims of rape or incest + but president bush is expected to veto the congressional legislation and that along with the easy approval of the pennsylvania measure is likely to <unk> the abortion-rights activists ' claims of momentum and <unk> the challenges faced by this <unk> movement + it 's great to feel good for once in N years says harrison <unk> a consultant to abortion-rights advocates reflecting the relief of his <unk> after last week 's victories the first major events since the supreme court in its july N webster decision permitted the states to enact restrictions on abortions + but how many more times we 're going to feel good in the next N is another question + indeed abortion-rights activists still face their greatest tests + the pro-choice movement has shown finally that it can <unk> says <unk> <unk> a <unk> university political scientist who specializes in how state legislators handle the abortion question + but it still has n't shown that it can win in a state like pennsylvania or missouri where abortion has been clearly an electoral issue and where it 's been an emotional issue for a long time + the foes of abortion hold the strong whip hand in pennsylvania where abortion-rights activists are so much on the defensive that their strategy is less to fight the proposed legislation than it is to stress how the state legislature does n't reflect the <unk> of the state 's citizens + as a result gop state rep. stephen <unk> of delaware county the legislature 's leading <unk> of abortion has been given all but free rein to press a strict <unk> plan to restrict abortion and he hopes to force the supreme court directly to <unk> its N roe v. wade decision that established the right of abortion in the first place + the <unk> legislation the state 's house judiciary committee approved it in <unk> this week and the full pennsylvania house is expected to take up the bill next tuesday includes a provision to ban abortions after N weeks of pregnancy except to <unk> the death of the mother + mr. <unk> <unk> that the provision which attacks the <unk> standards that roe established will make it necessary for the supreme court to review roe and perhaps to <unk> it + but the pennsylvania measure also includes an informed consent provision that may become widely <unk> by abortion foes who want to make women contemplating abortion as uncomfortable as possible with the procedure and with themselves + under this legislation a woman must be informed N hours before the operation of the details of the procedure and its risks + regardless of whether one supports or opposes the right to an abortion mr. <unk> argues it is virtually impossible for any rational human being to disagree with the concept that a woman has the right to have all of the appropriate materials and advice made available to her before she makes a decision which one way or the other might remain with her for the rest of her life + in michigan where the state senate is expected to approve <unk> legislation by the end of next week gov. <unk> is the principal obstacle for anti-abortionists + susan <unk> a consultant to abortion-rights activists in the state takes comfort from the fact that the state 's house abortion opponents have n't been able to <unk> the votes to <unk> a veto on abortion in N years + but proponents believe they may be able to shake enough votes loose to override the veto if they are successful in portraying the legislation as a matter of parents ' rights + in illinois lawmakers will vote before next spring on legislation requiring physicians to perform tests on <unk> at N weeks to determine their <unk> age weight and lung maturity along with a provision requiring that if <unk> survive an abortion a second doctor must be on hand to help it survive + the legislation failed by one vote to clear the house rules committee tuesday but anti-abortionists still may succeed in bringing the measure to the floor this fall + <unk> <unk> executive director of the illinois planned <unk> council says she and her allies are cautiously optimistic they can defeat it if it comes to a floor vote + abortion foes in wisconsin meanwhile expect a <unk> bill to be sent to the state assembly floor by early november and are hopeful of prevailing in both houses by next march + in texas abortion opponents want to pass <unk> legislation along with a statewide ban on the use of public funds personnel and facilities for abortion and viability tests for <unk> N weeks and older + the anti-abortionists are urging gop gov. bill <unk> to press the issues in a special session scheduled to run nov. N to dec. N + the <unk> is only fair says <unk> roberts administrative director of the texas right to life committee + next year is an election year and the legislators just do n't want to do anything about this now + this legislative activity comes as both sides are undertaking new <unk> efforts plunging into gubernatorial races in virginia and new jersey and <unk> for next autumn 's state elections + at the same time abortion foes have developed a national legislative strategy deciding to move on what <unk> <unk> the national right to life committee 's director of state <unk> development calls reasonable measures that an overwhelming mainstream majority of americans support + these include bans on the use of abortion for birth control and sex selection and the public funding of alternatives for abortion + those who are on the other side can hardly oppose alternative funding if they continue to insist on calling themselves pro-choice rather than <unk> says mary <unk> the group 's associate state legislative coordinator + over the weekend the national abortion rights action league singled out eight politicians including pennsylvania 's mr. <unk> as N targets and held a washington <unk> designed to train its leaders in political techniques including how to put the anti-abortionists on the defensive in state legislatures + we now see pro-choice legislators going on the offensive for the first time says kate <unk> executive director of the group + wall street + when i was just a child and confronted by my fears the things that i thought would get me had <unk> and pointed <unk> + nothing much has changed my periodic <unk> are still from hostile animals only now they 're bulls and bears + pat <unk> + daffynition + trained <unk> <unk> + <unk> j. <unk> + this maker and marketer of <unk> tape systems said it completed the sale of N million shares of common priced at $ N a share in an initial public offering + the company said that it is selling two million shares and that the rest are being sold by certain stockholders + proceeds will be used for capital expenditures and working capital + goldman sachs & co. and montgomery securities inc. are <unk> the offering + congress sent president bush an $ N billion fiscal N treasury and postal service bill providing $ N billion for the internal revenue service and increasing the customs service 's <unk> program nearly a third + final approval came on a simple voice vote in the senate and the swift passage <unk> with months of negotiations over the underlying bill which is <unk> with special-interest provisions for both members and the executive branch + an estimated $ N million was added for university and science grants including $ N million for smith college + and southwest lawmakers were a driving force behind $ N million for <unk> border facilities or more than double the administration 's request + more than $ N million is allocated for <unk> and expenses for former presidents and the budget for the official residence of vice president quayle is more than doubled with $ N designated for improvements to the property + even the office of management and budget is remembered with an extra $ N million to help offset pay costs that other government departments are being asked to absorb + within the irs nearly $ N billion is provided for processing tax returns a N N increase over fiscal N and double what the government was spending five years ago + investigation and taxpayer service accounts would grow to $ N billion and congress specifically added $ N million for stepped up criminal investigations of money laundering related to drug traffic + the large increase in customs service <unk> funds is also intended to counter <unk> and the annual appropriations level has more than <unk> in five years + the $ N million provided for fiscal N anticipates the purchase of a lockheed <unk> <unk> aircraft and five <unk> <unk> ii jets + despite administration reservations the plan has had the quiet backing of customs officials as well as influential lawmakers from <unk> 's home state kansas + among legislative provisions attached to the bill is a ban on any treasury department expenditure for enforcement of a N tax provision intended to counter discrimination in <unk> plans + small-business interests have lobbied against the so-called section N tax rules + repeal is considered likely now but the treasury department bill has been used as a vehicle to raise the profile of the issue and block any action in the interim + less noticed is a bit of legislative <unk> by houston republicans on behalf of <unk> corp. of texas to <unk> move a missouri hospital from one county to the next to justify higher medicare <unk> + the provision seeks to wipe out an estimated $ N million in claims made by the health care finance administration against <unk> which owned the hospital in sullivan mo. during most of the four-year period N covered in the amendment + in a separate development a private meeting is scheduled this morning between house appropriations committee chairman jamie whitten d. miss and sen. dale <unk> d. ark in an effort to end a dispute which for two weeks has delayed action on an estimated $ N billion agriculture bill + a house-senate conference reached agreement oct. N on virtually all major provisions of the bill but final settlement has been stalled because of differences between the two men over the fate of a modest <unk> program to provide technical information to farmers seeking to reduce their <unk> on chemical <unk> and pesticides + the program 's nonprofit sponsors received $ N in fiscal N through an extension service grant but mr. whitten has been <unk> in insisting that the program be cut in N + the <unk> <unk> takes a more orthodox entrenched view of agriculture policy than those in the movement to reduce chemical use but as a master of pork-barrel politics he is believed to be <unk> as well that the project moved to arkansas from a tennessee center near memphis and the northern mississippi border + michael f. <unk> director of corporate public relations at data general corp. was named to the new position of vice president corporate communications of this maker of data storage equipment + b.a.t industries plc may delay aspects of its defensive restructuring plan including the sale of its saks fifth avenue and marshall field units in the wake of the current upheaval in financial markets company officials said + the british conglomerate planning its own defensive restructuring to fight off a # N billion $ N billion takeover bid by <unk> financier sir james goldsmith intends to press ahead with an extraordinary shareholder vote today to clear the way for its <unk> measures + if anything the gyrations in world stock markets and in b.a.t 's share price since last friday 's sharp wall street sell-off have increased the likelihood of shareholder approval for the restructuring analysts and several big institutional holders said + <unk> god we have some deal on the table said stewart <unk> a director at scottish amicable investment managers which intends to vote its roughly N N stake in favor of the restructuring + investors in b.a.t have been on a roller <unk> + b.a.t has been london 's <unk> blue chip over the past six months up N N against a N N rise in the financial times 100-share index + but this week b.a.t has been hit harder than other big u.k. stocks first by the market gyrations then by tuesday 's san francisco earthquake which could leave b.a.t 's farmers group inc. insurance unit facing big claims + b.a.t rose five pence eight cents to N pence $ N in london yesterday as a late market rally erased a <unk> fall earlier in the day + to fight off <unk> b.a.t plans to spin off about $ N billion in assets largely by selling such u.s. retailing units as marshall field and saks and by floating its big paper and u.k. retailing business via share issues to existing holders + proceeds will help pay for a planned buy-back of N N of its shares and a N N dividend increase + i think the restructuring will get the required support said michael <unk> an analyst at london <unk> <unk> phillips & drew + the shareholders effectively will support the share price by clearing the share buy-back + but b.a.t 's restructuring which was never going to happen quickly now will take longer because of the market upheaval + company officials holders and analysts who previously expected the <unk> to be substantially complete by the end of next year 's first half now say the market gyrations could delay the actions well into the second half + we are n't forced sellers + we do n't have an <unk> deadline and if market conditions are truly awful we might decide it is not the right time to take particular steps said michael <unk> a b.a.t spokesman + even if b.a.t receives approval for the restructuring the company will remain in play say shareholders and analysts though the situation may <unk> over the next N months rather than six + the new b.a.t will be a smaller tobacco and financial-services hybrid whose price-earnings ratio may more closely reflect the <unk> tobacco business than the <unk> financial-services business these holders believe + thus b.a.t 's restructuring may only make the company a more <unk> target for other corporate <unk> possibly such <unk> bidders as hanson plc + the last few days will surely slow down the pace of events says scottish amicable 's mr. <unk> + but i would n't write off sir james or other potential bidders + among possible delays the sales of saks and marshall field which were expected to be on the block soon after the crucial christmas season may slide into the second quarter or second half + analysts estimate that sales of the two businesses could raise roughly $ N billion + b.a.t is n't predicting a <unk> because the units are quality businesses and we are encouraged by the <unk> of inquiries said mr. <unk> + but the delay could happen if b.a.t does n't get adequate bids he said + people familiar with b.a.t say possible <unk> for the units include managers from both retailing chains and general <unk> corp. which is interested in bidding for saks + other potential bidders for parts of b.a.t 's u.s. retail unit include <unk> department stores inc. may department stores co. and limited inc + b.a.t has declined to identify the potential bidders + though sir james has said he intends to mount a new bid for b.a.t once approval from u.s. insurance regulators is received jitters over prospects for junk-bond financing and u.s. leverage buy-outs are making investors more skeptical about sir james 's prospects + his initial offer indicated he needed to raise as much as N N of the takeover financing through the debt markets + market uncertainty also clouds the outlook for b.a.t 's attracting a premium price for its u.s. retailing properties + finally tuesday 's california earthquake initially knocked N N off b.a.t 's share price in london yesterday because of fears of the potential claims to los angeles-based farmers which has a substantial portion of its property and casualty exposure in california + on farmers mr. <unk> said it is too early to <unk> the level of potential claims + he added b.a.t has no expectation of a material impact on farmers + bridge and highway <unk> will disrupt truck and auto transportation in the san francisco bay area for months to come + but rail air and <unk> links to the area escaped tuesday 's earthquake with only minor damage and many are expected to be operating normally today government and corporate transport officials said + air traffic at san francisco international airport was running about N N of normal yesterday afternoon but airport <unk> said they expect a return to full operations by saturday + the major <unk> to asia and one of the nation 's N busiest airports was closed to all but emergency traffic from the time the quake hit tuesday afternoon until N a.m. <unk> yesterday when controllers returned to the tower + getting to and from the airport in coming weeks may be the problem however + people 's ability to drive throughout the bay area is greatly restricted said a spokesman for the american automobile association + tom <unk> executive vice president and general manager of the california trucking association in <unk> said his organization urged trucking firms to halt all deliveries into the bay area yesterday except for <unk> supplies + some <unk> shipments will probably resume thursday he said + right now most of the roads into the bay area are closed but the list of closings changes about every N minutes + this wednesday morning the san mateo bridge was open and now we are informed that it is closed mr. <unk> said + united parcel service greenwich conn. said its operations in the san francisco area have been reduced to N N of normal + a ups spokesman said that although none of the company 's terminals trucks or airplanes were damaged in the quake road <unk> and power failures have <unk> its pickup and delivery of packages + the spokesman noted <unk> to <unk> traffic delays on the san mateo bridge for example + in addition power failures prevented its <unk> facilities from operating causing delays + but freight <unk> reported that damage to their facilities was relatively minor with santa fe pacific corp. 's rail unit the least affected by the quake + santa fe stopped freight trains tuesday night while its officials <unk> track but resumed service at N p.m. when they found no damage + union pacific corp. 's rail unit said that except for damage to shipping containers in its oakland yard its track bridges and structures were <unk> + that railroad is operating trains but with delays caused by employees unable to get to work + southern pacific transportation co. the hardest hit of the three <unk> in the bay area said service on its <unk> <unk> which is used by an <unk> train between los angeles and seattle was suspended temporarily because of <unk> <unk> near the epicenter of the quake + but service on the line is expected to resume by noon today + we had no serious damage on the railroad said a southern pacific spokesman + we have no problem to our freight service at all expect for the fact businesses are shut down + <unk> said it suspended train service into its oakland station which sustained heavy structural damage during the quake + the passenger railroad said it terminated some runs in sacramento relying on buses to ferry passengers to the bay area + <unk> said it planned to resume some train operations to oakland late yesterday + <unk> operations suffered little damage according to albert engelken deputy executive director of the american public transit association in washington + the bay area rapid transit <unk> the earthquake perfectly said mr. engelken adding that the rail system was running a full fleet of N trains during the day to provide an alternative for highway travelers + the highway system is <unk> up by the earthquake mr. engelken said + the transit system is how people are going to be getting around + he added that san francisco 's <unk> cars and <unk> buses were also running at full service levels + although <unk> delays in san francisco were significant yesterday they did n't appear to spread to other airports + the earthquake shattered windows at san francisco international 's <unk> control tower and <unk> pieces of the ceiling down on controllers three of whom suffered minor injuries + terminals at san francisco international also were damaged but the tower itself was intact + tuesday night thousands were diverted to other airports and had to wait a day to resume travel + <unk> at san francisco were n't damaged but traffic was being limited yesterday to N <unk> and N departures an hour down from N to N an hour normally mainly because the noise level in the control tower was overwhelming without the windows an faa spokeswoman said + while the airport was closed flights were diverted to airports in sacramento and <unk> calif. <unk> and las vegas nev. and los angeles + united airlines the largest carrier at san francisco was operating only N N of its scheduled service in and out of the area because of damage to its terminal which in turn was causing delays for travelers headed to the bay area + a united spokesman said N of its N gates were <unk> mainly because of water damage caused when a <unk> system was triggered by the tremors + the united spokesman said none of its people were injured at the airport in fact as the airport was being <unk> tuesday night two <unk> were born + yesterday the united ticket counter was active with people trying to get flights out but the airline said demand for seats into the city also was active with people trying to get there to help family and friends + the airports in san jose and oakland were both fully operational by noon yesterday the federal aviation administration said + in terms of <unk> denver 's <unk> international may have experienced the most <unk> a united flight from japan was <unk> there + i think that 's the first <unk> commercial passenger flight from japan to land here an airport spokesman said + a japan air lines spokesman said its flights into and out of san francisco were n't affected but getting information about its operations was difficult + its telecommunications headquarters in <unk> calif. had been knocked out since the quake + we 're in the dark he said + whitbread & co. put its spirits division up for sale triggering a scramble among global groups for the british company 's brands + whitbread already has been approached by about half a dozen companies interested in buying all or part of the spirits business a spokesman said + analysts expect the spirits operations and some california <unk> that also are being sold to fetch about # N million $ N million + among the brands for sale are beefeater gin the no. N imported gin in the u.s. and <unk> <unk> whiskey + also for sale are <unk> <unk> co. which distributes <unk> <unk> <unk> whiskey in the u.s. and whitbread 's atlas peak <unk> in california 's <unk> valley + beefeater alone is worth as much as # N million analysts said + whitbread bought the beefeater <unk> two years ago for # N million + that purchase represented an attempt by whitbread a venerable british brewer to become a major player in the global liquor business + but whitbread has been squeezed by giant rivals amid widespread consolidation in the industry + now it wants to concentrate on beer and its newer hotel and restaurant operations + for rival liquor companies the whitbread auction is a rare opportunity to acquire valuable brands + it 's not very often something like this comes up said ron <unk> a liquor company analyst at nomura research institute in london + the division will be sold off quite rapidly predicted <unk> <unk> an analyst at london brokers county natwest <unk> + among possible buyers grand metropolitan plc might find beefeater a useful addition to its portfolio + grand met owns <unk> gin the no. N imported gin in the u.s. rival guinness plc has the no. N imported brand <unk> + the whitbread spirits auction is an extremely interesting development and naturally we 'll be considering it carefully a grand met spokesman said + guinness which owns several leading whiskey brands plus gordon 's gin the world 's no. N gin is considered less likely to bid for the whitbread spirits + a guinness spokesman declined to comment + two other global liquor giants canada 's seagram co. and britain 's <unk> plc also are possible buyers + seagram 's gin is the world 's no. N gin brand but the company does n't own any of the major gin brands imported in the u.s. + <unk> while powerful in whiskey does n't own any major <unk> brands + we will certainly have to take a look at the whitbread spirits business an <unk> spokesman said + we would certainly like to have a major <unk> brand in our portfolio + a seagram spokesman in new york would n't comment + smaller liquor companies such as brown-forman corp. and american brands inc. of the u.s. also are likely to be interested + such companies are increasingly being left behind in the global liquor business says nomura 's mr. <unk> + in new york a spokesman for american brands would n't comment + brown-forman a louisville ky. <unk> also declined to comment + whitbread 's wine spirits and soft-drink operations had trading profit of # N million on sales of # N million in the year ended feb. N + the company which is retaining most of its wine and all of its soft-drink interests did n't break out results for the businesses it plans to sell + but analysts estimate their trading profit at # N million + whitbread had total pretax profit in the year ended feb. N of # N million on sales of # N billion + whitbread 's spirits auction occurs amid a parallel <unk> in the british beer industry + earlier this year the government announced plans to foster increased competition in the industry + british <unk> currently own thousands of <unk> which in turn sell only the <unk> ' beer and soft drinks + under new rules many of the country 's <unk> would become free houses selling beers of their choice + whitbread now intends to bolster its brewing interests in an effort to grab a share of sales to free houses + the company which last month paid # N million for regional british brewer <unk> group plc has about N N of the british beer market + whitbread also owns the license to <unk> and distribute <unk> and <unk> <unk> beers in britain + in addition whitbread intends to focus on its newer hotel liquor store and restaurant businesses in europe and north america + in britain those interests include the beefeater <unk> chain and joint ownership with pepsico inc. of the country 's pizza hut chain + in canada and the u.s. whitbread owns the <unk> chain of <unk> and <unk> restaurants + focusing on beer restaurants and hotels means we can concentrate our skills and resources more effectively peter <unk> whitbread 's managing director said in a statement + the spirits business would require substantial additional investment to enable it to compete effectively in the first division of global players + whitbread also announced that mr. <unk> who is N will become the company 's chief executive march N + at that time sam whitbread the company 's chairman and a <unk> of its <unk> founder will retire from executive duties + he will retain the <unk> title of <unk> chairman + the treasury plans to raise $ N million in new cash with the sale tuesday of about $ N billion in two-year notes to redeem $ N billion in maturing notes + the offering will be dated oct. N and mature oct. N + tenders for the notes available in minimum $ N denominations must be received by N p.m. edt tuesday at the treasury or at federal reserve banks or branches + <unk> land & <unk> co. <unk> calif. announced a 2-for-1 split in the real estate limited partnership 's units and increased its regular quarterly cash distribution N N to N cents a unit + the real estate limited partnership also said it will pay a special year-end cash distribution of N cents a unit + both distributions are payable dec. N to limited partners of record nov. N + mellon bank corp. said directors authorized the buy-back of as many as N common shares + the bank holding company said stock <unk> will be used to meet requirements for the company 's benefit plans + mellon has N million shares outstanding + champion international corp. 's third-quarter profit dropped N N reflecting price declines for certain paper products operating problems at certain mills and other factors + the paper producer reported that net income fell to $ N million or $ N a share from $ N million or $ N a share in the year-earlier period + sales rose N N to $ N billion from $ N billion + in new york stock exchange composite trading champion 's shares rose N cents to $ N + digital equipment corp. is planning a big <unk> party on tuesday for its first line of mainframe computers + but an <unk> guest is expected to try to crash the party + on the morning of the <unk> announcement international business machines corp. is to introduce its own new mainframe + their attitude is you want to talk mainframes we 'll talk mainframes says one computer industry executive + they 're deliberately trying to steal our <unk> a digital executive complains + maybe we should take it as a <unk> + digital 's target is the $ N billion market for mainframe computers the <unk> <unk> that nearly every big company needs to run its business + ibm based in armonk n.y. has dominated the market for decades + that does n't scare digital which has grown to be the world 's second-largest computer maker by <unk> customers of ibm 's <unk> machines + digital based in maynard mass. hopes to stage a repeat performance in mainframes and it has spent almost $ N billion developing the new technology + a <unk> <unk> tandem computers inc. in cupertino calif. jumped into the fray earlier this week with an aggressively priced entry + ibm appears more worried about digital which has a broad base of customers waiting for the new line dubbed the vax N + it 's going to be nuclear war says thomas <unk> a consultant with <unk> group inc + the surge in competition is expected to stir new life into the huge mainframe market where growth has slowed to single <unk> in recent years + ibm 's traditional mainframe rivals including unisys corp. control data corp. and ncr corp. have struggled recently + digital is promising a new approach + robert m. <unk> digital 's vice president for high performance systems says digital 's mainframe is designed not as a central computer around which everything <unk> but as part of a <unk> network <unk> together hundreds of workstations personal computers printers and other devices + and unlike ibm 's <unk> mainframes it does n't need any plumbing + the <unk> will have a big price advantage + digital is expected to tag its new line from about $ N million to $ N million and up depending on <unk> + that 's about half the price of <unk> equipped ibm mainframes + tandem 's pricing is just as aggressive + the heightened competition will hit ibm at a difficult time + the computer giant 's current mainframe line which has sold well and has huge profit margins is starting to show its age + the new <unk> due next week will boost performance by only about N N to N N + and ibm is n't expected to deliver a new generation of mainframes until N + still no one expects ibm 's rivals to deliver a <unk> + ibm has a <unk> on mainframes with an estimated N N share of the market + ibm is five times the size of digital and N times the size of tandem and <unk> enormous market power + it counts among its customers a majority of the world 's largest corporations which <unk> their most critical business information to ibm computers + we 're not going to walk in and replace a company 's corporate accounting system if it 's already running on an ibm mainframe concedes kenneth h. <unk> digital 's president + he says digital will target <unk> market segments such as <unk> transaction processing which includes <unk> tracking airline reservations and <unk> networks + tandem which already specializes in <unk> transaction processing is a potent competitor in that market + a key marketing target for digital will be the large number of big customers who already own both digital and ibm systems + one such company is bankers trust co + stanley rose a vice president technological and strategic planning at bankers trust says that despite digital 's low prices we are n't about to <unk> our ibm mainframes for a dec machine + the software conversion costs would <unk> any savings + but mr. rose is still looking seriously at the N + bankers trust uses digital 's vax to run its huge <unk> and capital markets accounts <unk> hundreds of billions of dollars each day he says + as that system grows larger computers may be needed + in the past customers had to go to ibm when they <unk> the vax + now they do n't have to he says + that 's going to cost ibm revenue + analysts say digital can expect this <unk> demand for the new vax to fuel strong sales next year + barry f. <unk> an analyst at sanford c. bernstein & co. estimates the N could boost sales by more than $ N billion in the fiscal year beginning in july + he bases the estimate on a survey of hundreds of digital 's largest customers + although digital will announce a full family of mainframes next week it is n't expected to begin shipping in volume until next year + the first model available will be the N which is likely to appeal to many technical and scientific buyers interested in the <unk> <unk> or <unk> <unk> says terry shannon of international data corp. a market research concern + four more models aimed <unk> at ibm 's commercial customers are expected to begin shipping in late june + most analysts do n't expect the new mainframes to begin contributing significantly to revenue before the fiscal first quarter which begins next july N + digital 's new line has been a long time coming + the company has long struggled to deliver a strong <unk> product and made a costly decision in N to halt development of an interim product meant to stem the revenue losses at the high end + digital 's failure to deliver a true <unk> machine before now may have cost the company as much as $ N billion in revenue in fiscal N mr. <unk> says + ibm will face still more competition in coming months + <unk> corp. backed by japan 's fujitsu ltd. has a growing share of the market with its <unk> <unk> machines + and national advanced systems a joint venture of japan 's hitachi ltd. and general motors corp. 's electronic data systems is expected to unveil a line of powerful <unk> mainframes later this year + note + <unk> is national advanced systems <unk> control data corp. bull <unk> information systems inc + source international data corp + compiled by publishers weekly from data from <unk> <unk> <unk> chains and local <unk> lists across the u.s. + copyright N by reed publishing usa + the <unk> stock and bond markets cooled off but the dollar slumped + stocks rose slightly as trading activity slowed from the <unk> pace earlier this week + prices of long-term treasury bonds <unk> in a narrow band most of the day finishing little changed despite the dollar 's weakness and fears about a wave of government borrowing coming soon + helped by futures-related program buying the dow jones industrial average gained N points to close at N + but the dow jones transportation average fell for the <unk> session as more investors dumped ual shares + bond prices rallied early yesterday morning as traders scrambled to buy treasury issues on fears that the northern california earthquake might lead to a stock-market debacle + but when stocks held steady treasury bonds later retreated + speculation that the federal reserve will lower interest rates in coming weeks helped push the dollar down while boosting stocks traders said + but many investors remain wary about stocks partly because they expect continued turbulence in the junk-bond market that would make it more difficult to finance corporate takeovers + i 'm surprised we did n't see more volatility in stocks said raymond f. devoe jr. market strategist at legg mason wood walker + i think the problems in the junk-bond area are just beginning and this will be very <unk> for companies that have issued junk bonds + in a bull market credit does not matter mr. devoe added + but when it does matter then it 's the only thing that matters + however many institutional investors are reacting to the stock market 's plunge as a great buying opportunity said charles i. <unk> chief investment strategist at merrill lynch capital markets + things are beginning to settle down + the markets are returning to <unk> + oil prices initially rose on fears that the massive earthquake in northern california would disrupt production + but prices later reversed course finishing slightly lower as investors concluded that any cuts would n't be large and that foreign oil producers would quickly pick up the slack + in major market activity + stock prices rose + new york stock exchange volume shrank to N million shares from N million tuesday + advancers on the big board <unk> decliners by N to N + bond prices were little changed in sluggish activity + the yield on the treasury 's 30-year issue fell slightly to N N + the dollar dropped + in new york late yesterday the currency was at N yen and N marks down from N yen and N marks late tuesday + james l. <unk> N years old was named a vice president and assistant general manager of this producer of copper and other minerals + he will succeed arthur e. <unk> as general manager feb. N when mr. <unk> <unk> + amr corp. posted an N N drop in third-quarter net income and said the fourth quarter will be disappointing as well primarily because of <unk> profit margins and increased fuel costs + amr 's earnings decline comes a year after the parent company of american airlines and the rest of the airline industry set profit records + some analysts say the latest results only seem pale by comparison with a spectacular second half of N + still amr 's <unk> does n't <unk> well for the rest of the industry + the fort worth texas company is generally regarded as one of the <unk> in the business and its difficulties are likely to be reflected industrywide as other major carriers report third-quarter results over the next several days + meanwhile the company 's board which had said nothing publicly about investor donald trump 's recently withdrawn $ N billion offer for amr issued a statement <unk> <unk> and reckless bids and saying it was pleased that mr. trump had backed out + in the third quarter amr said net fell to $ N million or $ N a share from $ N million or $ N a share + revenue rose N N to $ N billion from $ N billion a year earlier + amr 's chairman robert l. crandall said the results were due to an N N year-to-year increase in fuel prices and a slight decrease in yield an industry measure <unk> to profit margin on each seat sold + we think these trends will continue and will produce a very disappointing fourth quarter as well he said + tim <unk> an analyst with merrill lynch & co. said the business turned faster than expected + costs are giving them a little bit of trouble and the whole industry is having a pricing problem + for the nine months amr 's net rose N N to $ N million or $ N a share from $ N million or $ N a share + revenue jumped N N to $ N billion from $ N billion + amr 's board in a statement after a regular meeting yesterday said <unk> and reckless acquisition proposals <unk> affect employee financial and business relationships and are contrary to the best interests of amr shareholders + amr has not been and is not for sale + mr. crandall said the company 's current decline in earnings is exactly the kind of situation that an <unk> leveraged company <unk> with debt from a takeover would find difficult to weather + our very disappointing third-quarter results and the discouraging outlook for the fourth quarter underscore the importance of an adequate capital base he said + christopher whittington <unk> deputy chairman of this british investment-banking group and chairman of morgan grenfell & co. the group 's main banking unit has retired from his executive duties + succeeding mr. whittington as deputy chairman of the group is anthony <unk> N currently a main board member + succeeding mr. whittington at morgan grenfell & co. is richard <unk> N currently deputy chairman + mr. whittington will remain on the main group board as a nonexecutive director + without federal subsidies to developers of beach houses the economic and structural damage by hurricane hugo in south carolina would have been much less as <unk> by your oct. N editorial subsidizing disaster + congress should stop throwing tax dollars out to sea by subsidizing the development of beach communities on <unk> fragile coastal barrier islands such as the <unk> <unk> of <unk> near charleston + as you mentioned subsidies for development on a number of barrier islands were curtailed in N by the coastal barrier resource system + the national taxpayers union would like congress to add N acres to the N of <unk> in the system by <unk> the coastal barrier improvement act of N + this bill simply says that if you want to develop property on a barrier island you have to do so without taxpayer support + <unk> rights would be upheld because the legislation would not ban coastal development + however home builders would have to bear the full costs of such <unk> construction + a taxpayers union study concluded the bill would save taxpayers up to $ N billion in <unk> subsidies over N years + already the N legislation has saved an estimated $ N million + marshall <unk> taylor + communications director + national taxpayers union + the government said N N of americans or N million people were living in poverty in N + while last year 's figure was down from N N in N and marked the fifth consecutive annual decline in the poverty rate the census bureau said the N drop was n't <unk> significant + the bureau 's report also showed that while some measures of the nation 's economic <unk> improved modestly in N the <unk> of prosperity were shared less <unk> than the year before + <unk> data derived from a march N survey of N households william <unk> associate director of the census bureau said that most groups either stayed the same or improved + but he added since the late 1960s the distribution of income has been slowly getting less equal + there was no reversal of that trend between N and N + per capita income a widely used measure of a nation 's economic health hit a record in N rising N N after inflation adjustment to $ N + but the median income of american families fell N N the first time it has failed to rise since N + mr. <unk> said the divergence in the two measures reflects changes in family size and structure including the rising number of <unk> families and a sharp increase in income reported by americans who are n't living in families + as a result of last year 's decline the government 's estimate for the number of people living below the poverty line declined by about N + the poverty <unk> defined as three times food expenses as calculated by the agricultural department last year was $ N for a family of four + the census bureau counts all cash income in determining whether families are below the line but it does n't consider other government benefits such as medicare + thanks largely to the continued growth of the u.s. economy the poverty rate is now substantially lower than the N peak of N N but the improvements have been modest in the past couple of years + poverty remains far more widespread among blacks than other americans + in N N N of blacks lived in poverty compared with N N for whites and N N for hispanics + but two-thirds of all poor americans were white + more than half of poor families were headed by women living without men the bureau said + more than <unk> of poor black families were headed by women + the poverty rate of children under N years old dropped last year to N N from N N in N but remained far higher than a decade ago + the rate among the elderly N N in N was n't significantly lower than the year before + if it were n't for social security payments more than three times as many elderly would be below the poverty line mr. <unk> said + the census bureau also said + some N N of all money income received by families in N went to the <unk> N N of all families up from N N in N + that is the greatest share reported for any year since N although changing <unk> over the years <unk> the comparison + the top fifth of all families got N N of the income up from N N a decade earlier + the bottom fifth of all families got N N of the income down from N N a decade earlier + confirming other government data showing that wages are n't keeping pace with inflation earnings of <unk> full-time male workers fell N N in N after adjusting for higher prices the first such drop since N + earnings of female workers were unchanged + women working full-time earned N cents for every dollar earned by men a penny more than in N and seven cents more than in N + median household income which includes both those living in families and those who are n't rose N N last year to $ N after inflation + it rose sharply in the northeast and midwest and fell slightly in the south and west + median family income was $ N down N N + per capita income of blacks though still only N N that of whites rose N N in N while per capita income of whites rose only N N + among married couples the gap between blacks and whites narrowed sharply as income of black families shot up N N while income of whites did n't <unk> + fueling a controversy that has been <unk> for years the census bureau also said its figures would look far <unk> if it <unk> the poverty <unk> using an improved <unk> measure adopted in N + the bureau said some N million fewer people would have fallen below the poverty line in N and the poverty rate would have been N N instead of N N under the alternative <unk> + critics on the left and right have been calling for all sorts of revisions to the measure for years + a report by the staff of the joint economic committee of congress released yesterday concluded it is misleading to make this change without adjusting for other changes + the official poverty <unk> is set by the office of management and budget + john e. <unk> jr. was elected chairman president and chief executive officer succeeding david s. black who retired + mr. <unk> N years old left southwestern bell telephone co. in january where he had been chairman president and chief executive to join <unk> capital partners a st. louis company with interests in solid waste and recycling telecommunications and international venture capital + he has resigned his posts at <unk> to take the kansas power positions + kansas power said mr. black N chose early retirement + the space shuttle atlantis boosted the galileo spacecraft on its way to jupiter giving a big lift as well to an ambitious u.s. program of space exploration + seven years late in the launching $ N billion over budget and a target of anti-nuclear <unk> galileo has long been a symbol of trouble for the national aeronautics and space administration + but yesterday as atlantis <unk> into a patch of clear sky above florida with storm clouds closing in on it nasa sought to turn galileo into a symbol of <unk> + nasa did it right that 's the message said <unk> thompson the agency 's deputy administrator + the $ N billion robot spacecraft faces a <unk> <unk> to explore jupiter and its N known <unk> + if all goes well it will <unk> a probe into the <unk> <unk> atmosphere in july N to pick up detailed data about <unk> that may be similar to the material from which the solar system was formed N billion years ago + jupiter is so enormous its mass is N times that of earth that its <unk> may have trapped these <unk> <unk> and never let them escape + investigating jupiter in detail may provide clues to what <unk> <unk> owen calls the <unk> <unk> of life jupiter and other bodies in the outer solar system are rich in elements such as <unk> that are essential for life on earth but these <unk> are <unk> earth on the other hand has a diminished store of such material but is rich in life + some scientists have suggested that <unk> and <unk> may have brought enough of this kind of material from the outer solar system to earth to <unk> life + beginning in december N galileo will begin a two-year tour of the <unk> <unk> + in N two <unk> spacecraft sent back stunning photos of <unk> <unk> <unk> and <unk> that showed them to be among the most intriguing bodies in the solar system + the photos showed active <unk> on <unk> <unk> <unk> material N miles into its atmosphere and indicated that <unk> may have an ocean hidden under a thick sheet of ice + galileo 's photos of <unk> will be more than N times as sharp as <unk> 's according to <unk> johnson galileo 's project scientist and may show whether it actually has the only known ocean other than those on earth + atlantis lifted galileo from the launch <unk> at N p.m. edt and released the craft from its cargo bay about six hours later + galileo is on its way to another world in the hands of the best flight controllers in this world atlantis <unk> donald williams said + fly <unk> + the <unk> atlantis crew will conduct several experiments including growing plants and processing <unk> materials in space before their scheduled landing at edwards air force base calif. monday + the galileo project started in N and a number of project veterans were on hand to watch the launch + an <unk> mr. johnson wearing a nasa baseball cap and carrying a camera and <unk> called the launch <unk> + <unk> <unk> manager of the galileo probe compared it to watching a child leave home + i 'm happy and sad he said + anti-nuclear activists took a less positive view + having argued that galileo 's <unk> power source could have released <unk> <unk> of radiation if the shuttle exploded yesterday they were n't <unk> by yesterday 's successful launch + galileo will <unk> past earth in N and N collecting energy from the planet 's <unk> field to gain momentum for its trip to jupiter + the protesters point out that galileo also could crash to earth then + they said they dropped plans to <unk> the kennedy space center after nasa <unk> up its security + one protest did get past nasa 's guard though a computer virus caused <unk> messages to <unk> onto some computer screens at nasa centers + the successful launch continues a remarkable recovery in the u.s. <unk> program + an <unk> spacecraft <unk> already is heading to <unk> and is due to begin <unk> the planet next august + <unk> N sent back spectacular photos of <unk> and its moon <unk> this summer + next month nasa plans to launch a satellite to study <unk> <unk> dating from the birth of the universe + in december the shuttle columbia will try to retrieve a satellite that 's been in <unk> for nearly five years measuring the <unk> effects of space on materials and instruments + next march the shuttle discovery will launch the <unk> space <unk> a $ N billion instrument designed to see the <unk> <unk> in the universe + not all of nasa 's <unk> work will be so <unk> though + around <unk> the solar max satellite which nasa repaired in <unk> in N will tumble back into the earth 's atmosphere + nasa wo n't attempt a rescue instead it will try to predict whether any of the rubble will <unk> to the ground and where + the associated press 's earthquake coverage drew attention to a phenomenon that deserves some thought by public officials and other policy makers + private relief agencies such as the <unk> army and red cross <unk> almost instantly to help people while the washington bureaucracy took hours getting into gear + one news show we saw yesterday even displayed N federal officials meeting around a table + we recall that the mayor of charleston complained bitterly about the federal bureaucracy 's response to hurricane hugo + the sense grows that modern public <unk> simply do n't perform their assigned functions well + bally manufacturing corp. and new york developer donald trump have agreed in principle to a $ N million settlement of shareholder litigation stemming from bally 's alleged <unk> payment to mr. trump + according to lawyers familiar with the settlement talks the <unk> agreement to end a lawsuit filed more than two years ago was reached last week and will soon be submitted to a federal judge in <unk> n.j + in february N bally <unk> a possible hostile takeover bid from mr. trump by agreeing to buy N million of mr. trump 's N million bally shares for $ N million more than $ N million above market price + the term <unk> <unk> to a situation where a company pays a premium over market value to repurchase a stake held by a potential acquirer + lawyers for shareholders bally and mr. trump all declined to talk publicly about the proposed settlement citing a request by a federal court <unk> not to reveal details of the agreement until it is completed + but some attorneys who are familiar with the matter said the $ N million payment will be shared by bally and mr. trump with the casino and hotel concern probably paying the bulk of the money + the amount bally and mr. trump will pay to settle the class-action suit <unk> in comparison to the $ N million walt disney co. and saul steinberg 's reliance group holdings inc. agreed to pay to settle a similar suit in july + that settlement represented the first time shareholders were granted a major payment in a <unk> case + mr. steinberg made a $ N million profit on the sale to disney of his investment in the company in N + but lawyers said mr. steinberg probably faced much more potential liability because when he sued disney during his takeover battle he filed on behalf of all shareholders + when disney offered to pay mr. steinberg a premium for his shares the new york investor did n't demand the company also pay a premium to other shareholders + when mr. trump sued bally he sued only on behalf of himself + mr. trump and bally also appeared to have some leverage in the case because in the state of delaware where bally is incorporated courts have held that <unk> is often protected by the <unk> rule + that rule gives boards of directors wide <unk> in deciding how to deal with dissident shareholders + senate <unk> final arguments in impeachment trial of federal judge + yesterday u.s. judge <unk> hastings faced his jury the full u.s. senate and said i am not guilty of having committed any crime + <unk> articles of impeachment against the florida judge one of the few blacks on the u.s. bench were approved by the house in august N + the central charge against judge hastings is that he conspired with a washington lawyer to obtain a $ N bribe from defendants in a criminal case before the judge in return for <unk> + he is also accused of lying under <unk> and of <unk> information obtained from a <unk> he <unk> + the senate 's public gallery was packed with judge hastings ' supporters who erupted into applause after he finished his argument + judge hastings who was acquitted of similar charges by a federal jury in N claims he is being <unk> and that the impeachment proceedings against him constitute double jeopardy + but rep. john bryant d. texas the lead counsel for the house managers who conducted a lengthy inquiry into judge hastings ' activities said a mountain of evidence points to his certain <unk> + the senate will <unk> behind closed doors today and is scheduled to vote on the impeachment tomorrow + if the judge is <unk> as is thought likely he will be removed from office immediately + however judge hastings has said he will continue to fight and is contemplating an appeal of any impeachment to the u.s. supreme court + companies seeking to make insurers pay for pollution cleanup win court victory + in a case involving avondale industries inc. and its insurer travelers cos. the second u.s. circuit court of appeals in new york ruled in favor of the company on two issues that lawyers say are central to dozens of pollution cases around the country + travelers and other insurers have maintained that cleanup costs are n't damages and thus are n't covered under commercial policies + they also have argued that government proceedings <unk> a company of potential responsibility do n't fit the legal definition of a lawsuit thus such <unk> proceedings are n't covered by the policies the insurers say + the appeals court disagreed on both counts + avondale was notified by louisiana officials in N that it was potentially responsible for a cleanup at an <unk> plant + avondale asked travelers to defend it in the state proceeding but the insurer did n't respond + the appeals court upheld a district judge 's ruling that the insurer had to defend the company in such proceedings + the appeals court also said we think an ordinary businessman reading this policy would have believed himself covered for the demands and potential damage claims stemming from any cleanup + this decision will have a very considerable impact said kenneth <unk> professor of environmental law and insurance law at the university of virginia because many commercial insurance policies are issued by companies based in new york + william <unk> an attorney for the chemical manufacturers association said that while other appeals courts have ruled differently on whether cleanup costs are damages the influence of the appeals court in new york will make insurers sit up and listen + he said the decision was the first in which a federal appeals court has ruled whether administrative government proceedings qualify as litigation + barry r. <unk> an attorney for travelers said there are procedural bases on which this case will be appealed further + new york 's poor face nearly three million legal problems a year without legal help + that is the conclusion of a report released by the new york state bar association + the report was based on a telephone survey of N low-income households across the state a mail survey of major <unk> programs and on-site interviews with individuals in the field + the report provides detailed <unk> of the extent and nature of the problem and indicates how we may want to shape solutions said joseph <unk> chairman of the committee that <unk> the survey and a partner at the law firm of <unk> <unk> <unk> & <unk> + according to the study slightly more than N N of those surveyed reported having at least one housing problem every year for which they had no legal help + nearly N N ranked housing problems as their most serious <unk> legal need + other areas targeted by the survey 's respondents included difficulty obtaining or maintaining public benefits N N consumer fraud N N and health-care issues N N + during the <unk> survey N N of all <unk> programs said that at some period they were unable to accept new clients unless they had an emergency + mr. <unk> said the committee may meet to propose solutions to the problems identified in the study + prosecutor to join <unk> dunn + assistant u.s. attorney <unk> <unk> who headed the government 's racketeering case against the international <unk> of <unk> will join <unk> dunn & <unk> in its new york office + mr. <unk> has been with the new york u.s. attorney 's office for nearly five years + in N he became deputy chief of the civil division + mr. <unk> will do civil litigation and white-collar defense work for <unk> dunn which is based in los angeles + former apple computer inc. general counsel john p. <unk> has joined the phoenix ariz. law firm of brown & <unk> + mr. <unk> N will specialize in corporate law and international law at the <unk> firm + before joining apple in N mr. <unk> served as general counsel at sperry corp + after failing to find a buyer for the sears tower in chicago sears roebuck & co. is negotiating with boston pension fund adviser <unk> eastman & <unk> inc. to <unk> the property for close to $ N million according to people close to the negotiations + under the proposed agreement involving the world 's <unk> building chicago-based sears would receive about half the money through conventional mortgage financing and the other half as a convertible mortgage + at the end of the term of the convertible loan sears could still own half the building and <unk> could own the other half + neither side would comment + the parties are currently negotiating over who would manage the building which will be <unk> of N employees from sears ' merchandise group which is moving elsewhere + the new manager will face the <unk> task of leasing N million square feet in a relatively soft chicago real estate market + also it has not yet been decided exactly how much of the mortgage <unk> will be able to convert into equity + convertible mortgages have become an increasingly popular way to finance prestigious buildings of late + in a convertible mortgage the investor <unk> the building owner a certain amount in return for the option to convert its interest into equity usually less than N N at the end of the loan term + during the term the lender can either receive a percentage of cash flow a percentage of the building 's appreciation or a fixed return + the main advantage of a convertible mortgage is that it is not a sale and therefore does not trigger costly transfer taxes and <unk> + sears said it would put the <unk> tower on the block almost a year ago as part of its anti-takeover restructuring + but japanese institutions <unk> away from bidding on the <unk> tower out of fear their purchase of the property would trigger <unk> sentiment + last summer sears appeared to have a deal with canadian developer olympia & york developments ltd + but that deal fell through in september after it became clear that the sale would lead to a major real estate tax <unk> raising property taxes and making it difficult to lease the building at competitive prices + real estate industry executives said sears ' investment banker goldman sachs & co. sought financing in japan + however japanese authorities apparently were concerned that a refinancing also would attract too much publicity + sears then went back to <unk> the boston pension adviser that had proposed a convertible debt deal during the first round of bids last spring + <unk> has $ N billion of real estate investments nationwide according to a spokesman + tandy corp. said it signed a definitive agreement to acquire two units of <unk> ab of stockholm for cash + the amount was n't disclosed + the electronics maker and retailer previously estimated the sale price at between $ N million and $ N million for <unk> 's victor <unk> and <unk> hand-held computer subsidiaries + in addition tandy will acquire rights to the victor and <unk> names for computers + during N the <unk> subsidiaries had combined sales in excess of $ N million + the transaction will give tandy a well-known european computer brand that includes N dealers and distributors marketing to medium-sized business and educational institutions + closing of the transaction is subject to certain conditions and regulatory approvals the company said + two rules in pending congressional legislation threaten to <unk> leveraged buy-outs by raising the price <unk> of such deals by as much as N N + wall street is <unk> over the rules which would curtail the tax <unk> of debt used in most lbos + the provisions in deficit-reduction bills recently passed by the house and senate could further cool the takeover boom that has been the driving force behind the bull market in stocks for much of the 1980s some tax experts and investment bankers argue + indeed some investment bankers have already started restructuring deals to cope with the expected rules + wall street has all but conceded on the issue and is now lobbying for the less onerous senate version of one of the provisions + at issue is the <unk> of certain junk bonds that are used in most lbos + such high-yield debt is similar to a zero-coupon bond in that it is sold at a discount to face value with interest <unk> instead of being paid to the holder + under current rules that accrued interest is deductible by the company issuing the debt + the house version of the legislation would kill that deduction and label any such debt as equity which is n't deductible + the <unk> senate version would defer the <unk> for roughly five years + you see these in just about every lbo said robert <unk> senior vice president in charge of tax issues at shearson lehman hutton inc. in new york + it becomes a source of cash for the company making the lbo because it gets a deduction and does n't have to repay the debt for several years + typically mr. <unk> estimates this type of debt makes up N N to N N of the financing for lbos + these types of bonds have been used in buy-outs of companies such as rjr nabisco inc. storer communications inc. and <unk> co + a second provision passed by the senate and house would eliminate a rule allowing companies that post losses resulting from lbo debt to receive refunds of taxes paid over the previous three years + for example if a company posted a loss of $ N million from buy-out interest payments the existing rule would allow the concern to be able to receive a refund from the tax it paid from N through N when it may have been a profitable public company + but that rule is being virtually <unk> by wall street which is concentrating on coping with the deduction issue + prices for lbos have to come down if you do n't have that feature argued lawrence <unk> managing director for merchant banking at donaldson lufkin & jenrette securities corp. in new york + several wall street officials say the proposed legislation already is having an impact + an investment group led by chicago 's <unk> family recently lowered a $ N billion bid for american medical international beverly hills calif. because of the threat of the legislation + moreover one investment banker who requested <unk> said his firm did n't raise the <unk> for a target company earlier this month after a stronger bid emerged from a public company that was n't concerned about the financing provision + we would have paid more if we thought that law was n't going to pass he said + one possible solution for wall street is to increase the equity part of the transaction that is give lenders a bigger stake in the surviving company rather than just interest payments + that would force the buy-out firm and the target company 's management to reduce their level of ownership + the pigs in the trough may have to give a little bit of the <unk> back and then the deal can go through said peter c. <unk> tax partner at <unk> lipton rosen & katz + another solution said a tax lawyer who requested <unk> is for firms to use convertible bonds that sell at a discount + since they have a lower interest rate they would n't fall under the junk-bond category that would lose its <unk> + the house version of the bill would make debt <unk> if it pays five percentage points above treasury notes has at least a five-year maturity and does n't pay interest for at least one year out of the first five + the bill would then declare that the debt is equity and therefore is n't deductible + the senate bill would only deny the deduction until interest is actually paid + currently even though the issuer does n't pay tax the debt holder is taxed on the accrued interest + but those holders are often foreign investors and tax-exempt pension funds that do n't pay taxes on their holdings + the senate estimates that its version of the provision would yield $ N million the first year and a total of $ N million over five years + the house version would raise slightly more + even if wall street finds ways around the new rules a senate aide contends lbos will become somewhat more difficult + there 's no question it will make lbos more expensive he said + the interest deduction was the engine that made these things more productive + the average publicly offered commodity fund fell N N in september largely because of the volatile markets in foreign currencies according to norwood securities + the firm said that losers outnumbered gainers by more than three to one among the N funds it tracks + for the first nine months of the year norwood said the average fund has lost N N + the government moved aggressively to open the <unk> of federal aid for victims of the california earthquake but its <unk> of emergency funds must be <unk> soon if the aid is to continue + president bush signed a disaster declaration covering seven northern california counties + the declaration immediately made the counties eligible for temporary housing grants and low-cost loans to cover uninsured property losses + in addition an unusually wide array of federal agencies moved to provide specialized assistance + the department of housing and urban development prepared to make as many as N vacant houses available for those left homeless the agriculture department was set to <unk> food from the <unk> program to earthquake victims and the pentagon was providing everything from radio communications to blood <unk> to military police for <unk> traffic + but the pool of federal <unk> funds already is running low because of the heavy costs of cleaning up hurricane hugo and congress will be under pressure to <unk> more money quickly + in hugo 's wake congress allocated $ N billion in relief funds and white house spokesman marlin fitzwater said $ N million of that money remains and could be diverted for quick expenditures related to the earthquake + now though enormous costs for earthquake relief will pile on top of outstanding costs for hurricane relief + that obviously means that we wo n't have enough for all of the <unk> that are now facing us and we will have to consider appropriate requests for <unk> funding mr. fitzwater said + the federal government is n't even attempting yet to estimate how much the earthquake will cost it + but mr. fitzwater said there will be i think quite obviously a very large amount of money required from all levels of government + in congress lawmakers already are looking for ways to add relief funds + money could be added to a pending spending bill covering the federal emergency management agency which <unk> federal disaster relief + more likely relief funds could be added to an omnibus spending bill that congress is to begin considering next week + but it is n't just washington 's relief dollars that are spread thin its relief manpower also is stretched + fema still has special disaster centers open to handle the aftermath of hugo and spokesman russell <unk> acknowledged that we 're pretty thin + mr. <unk> says fema now possibly may have the heaviest <unk> in its history + to further complicate relief efforts the privately funded american red cross also finds itself strapped for funds after its big hugo operation + it 's been a bad month <unk> and every other way said <unk> stewart a spokeswoman for the red cross + it just makes it a little rough when you have to worry about the budget + the red cross has opened N shelters in the bay area serving N people + <unk> trucks capable of cooking food were dispatched from other states + all the precise types of federal aid that will be sent to california wo n't be determined until state officials make specific requests to fema agency officials said + and in the confusion after the earthquake the information flow is a little slow coming in from the affected area said carl <unk> a fema spokesman + still some aid is moving <unk> from washington almost immediately + hud officials said they will make available as many as N bay area houses that are under hud loans but now are vacant after the houses have been <unk> to ensure they are sound + additional housing <unk> and certificates will be made available officials said and some housing and <unk> funds may be shifted from other programs or made available for emergency use + another federal agency not normally associated with disaster relief the internal revenue service moved quickly as well + the irs said it will waive certain tax penalties for earthquake victims unable to meet return deadlines or make payments because of the quake 's devastation + the agency plans to announce specific relief procedures in the coming days + and the treasury said residents of the san francisco area will be able to cash in savings bonds even if they have n't held them for the minimum six-month period + one advantage that federal officials have in handling earthquake relief is the large number of military facilities in the san francisco bay area facilities that provide a ready base of supplies and workers + even before the full extent of the devastation was known defense secretary dick cheney ordered the military services to set up an emergency command center in the pentagon and prepare to respond to various fema requests for assistance + by yesterday afternoon air force transport planes began moving additional rescue and medical supplies physicians communications equipment and fema personnel to california + a military jet flew a congressional delegation and senior bush administration officials to survey the damage + and the pentagon said dozens of additional crews and transport aircraft were on alert awaiting orders to move emergency supplies + two air force facilities near sacramento and <unk> air force base N miles northeast of san francisco were designated to serve as <unk> centers + some victims also were treated at the <unk> army medical center in san francisco and at the naval hospital in oakland + in addition N military police from the <unk> a military base in san francisco are <unk> with traffic control and a navy ship was moved from a naval station at <unk> island near the bay bridge to san francisco to help fight fires + to help residents in northern california rebuild fema intends to set up N disaster assistance offices in the earthquake area in the next several days and to staff them with N to N workers from various agencies said robert <unk> chief of the agency 's individual assistance division + at these offices earthquake victims will be helped in filling out a <unk> form that they will need to qualify for such federal assistance as <unk> loans and to repair houses + and federal officials are promising to move rapidly with federal highway aid to rebuild the area 's severely damaged road system + the federal highway administration has an emergency relief program to help states and local governments repair federally funded highways and bridges seriously damaged by natural disasters + the account currently has $ N million + and though federal law <unk> that only $ N million can be <unk> from that fund in any one state per disaster administration officials expect congress to move in to <unk> spending more now in california + to get that money states must go through an elaborate approval process but officials expect red tape to be cut this time + keith <unk> special assistant to federal highway administrator thomas <unk> also said that after the N san fernando earthquake in southern california the state set tougher standards for bridges and with federal aid began a program to <unk> highways and bridges for earthquake hazards + the first phase of the program has been completed but two other <unk> are continuing + the two major structures that failed tuesday night he said were both built well before the N earthquake the san francisco bay bridge completed in the 1930s and the section of <unk> built in the 1950s + the <unk> section had completed the first phase of the <unk> + <unk> <unk> contributed to this article + farmers reap abundant crops + but how much will shoppers benefit + the harvest <unk> in plenty after last year 's <unk> effort the government estimates corn output at N billion <unk> up N N from last fall + soybean production <unk> N N + as a result prices paid to farmers for the commodities which are used in products as diverse as <unk> gum and chicken feed plummet N N to N N + but do n't expect too much in the way of price breaks soon at the supermarket + economists expect consumer food prices to jump N N this year to the highest level since N and up from last year 's N N rise + next year may see a drop of one percentage point + beef prices <unk> near records since the drought could drop in <unk> this winter if <unk> expand <unk> + lower feed prices may help animals eat more <unk> but humans have to factor in an expensive <unk> the <unk> + food companies probably wo n't cut their prices much blaming other costs + labor takes the biggest single chunk out of the food dollar says frank <unk> of the food institute + <unk> says stores revive <unk> like three cans of <unk> for N cents + two cans cost N cents during the drought + if in vitro <unk> works it usually does so after only a few tries + costly <unk> problems and procedures <unk> as aging baby boomers and others decide to have children now + it 's estimated that one in six couples <unk> <unk> and in N americans spent about $ N billion to fight the problem + only about five states now offer some form of insurance coverage but more are expected + a letter in the new england journal of medicine notes that while technology offers almost endless hope when to stop has become a difficult question + the authors from boston 's beth israel hospital say that N N of the N <unk> they followed occurred after only two in vitro cycles + it adds that <unk> were extremely unlikely after the fourth cycle and concludes couples who do n't achieve a pregnancy after four to six procedures should be advised that success is unlikely + some couples continue to try + such determination may translate into extreme physical emotional and financial costs the letter warns + market moves these managers do n't + only three of the N corporate pension fund managers attending a <unk> consulting group client conference say they plan to change the asset allocation mix in their portfolios because of the market drop + world <unk> come alive in a <unk> version of the guinness book of records + the $ N <unk> disk it can only be played on an apple <unk> computer at the moment combines <unk> music and sound + among the guinness disk 's <unk> the world 's <unk> recorded <unk> + <unk> fax from david <unk> begins a <unk> exhibit today at new york 's <unk> <unk> gallery + one of the artist 's earliest fax works was little stanley sleeping a portrait of his dog + <unk> give and receive in a <unk> <unk> with employees ' favored charities + the federal election commission clears corporate plans to <unk> to an employee 's chosen charity in exchange for the worker 's gift to the company political action committee + latest approvals bell atlantic 's new jersey bell and general dynamics + companies get more political clout plus a possible <unk> charitable <unk> so far no word from the irs on <unk> + detroit edison the plan pioneer generated $ N in matching funds this year up from $ N in N + but the utility may not continue next year + we 're on a tight budget says detroit edison 's carol <unk> + two election commission members opposed the matching plans + scott e. thomas says the plans give employees a bonus in the form of charitable donations made from an employer 's treasury in exchange for the political <unk> + the u.s. government could be in effect subsidizing political contributions to corporate <unk> he says + new jersey bell <unk> state clearance + despite federal approval general dynamics says it decided it wo n't go ahead with the matching program + christmas shoppers find a helping hand from some catalog companies + blunt ellis & <unk> estimates direct mail catalog sales rose to $ N billion last year + and while it 's too soon to tell how sales will fare in the important N christmas season some companies take steps to ease the usual <unk> crush + spiegel promises a guaranteed christmas with a pledge to deliver goods before christmas if ordered by dec. N + and for an extra $ N land 's end will deliver orders within two days customers can <unk> the day + spiegel which also owns eddie <unk> and <unk> says that since N sales have doubled during the week before christmas + an <unk> <unk> spokeswoman notes people are just used to living in a last-minute society + blunt ellis a milwaukee brokerage firm says part of the reason catalog sales grow in popularity is because consumers have more money but less time to spend it + <unk> <unk> <unk> about N workers for the season rush about N more than last year land 's end <unk> N + briefs + <unk> <unk> a brazilian soft drink is brought to the u.s. by <unk> chevy chase md + new product news says the beverage looks like <unk> <unk> <unk> a little like <unk> and <unk> like <unk> gum + <unk> planned for chicago 's new <unk> tower apartments include an on-site investment <unk> + four years ago pittsburgh was designated the <unk> u.s. city by rand <unk> 's places rated <unk> and the honor did <unk> to improve pittsburgh 's <unk> image + people asked is it really true says <unk> <unk> vice president marketing services for <unk> products usa a maker of health and <unk> products that used the ranking in its recruiting <unk> + <unk> city calif. meanwhile ranked dead last among N <unk> areas + <unk> residents burned rand <unk> books and wore <unk> that said <unk> my atlas + the <unk> will be making new friends and enemies on oct. N when an <unk> version will be released + pittsburgh figures it will be <unk> but plans to accept its <unk> <unk> + the city 's office of promotion plans media events to welcome its successor + we 're encouraging a <unk> transition says mary <unk> <unk> the organization 's president + our attitude is that the ranking is like miss america + once you 're miss america you 're always miss america + tell that to atlanta which pittsburgh replaced as the <unk> city in N + many <unk> thought pittsburgh was an <unk> heir + a columnist in the atlanta journal and constitution wrote who did the research for this report + two guys from gary ind. + not so + <unk> david <unk> and richard boyer live in <unk> mass. and <unk> n.c. respectively + atlanta mr. <unk> <unk> has <unk> <unk> to <unk> status + the new edition lists the top N metropolitan areas as <unk> ana calif. boston louisville ky. <unk> n.y. new york pittsburgh san diego san francisco seattle and washington + mr. <unk> says earthquake or not san francisco makes the list + but attention also <unk> on who <unk> last and <unk> <unk> <unk> which finished third to last in N and second to last in N is certainly in the running + i hate to <unk> the publication by commenting on the <unk> rating mayor <unk> robinson says adding that cities have no way to <unk> the book + it 's like fighting your way out of a <unk> + you do n't know which way to <unk> + northrop corp. 's third-quarter net income fell N N to $ N million or N cents a share while general dynamics corp. reported nearly flat earnings of $ N million or $ N a share + los angeles-based northrop recorded an N N decline in sales as b-2 <unk> bomber <unk> revenue continued to <unk> and high costs on some other programs cut into profit + the aerospace concern earned $ N million or N cents a share a year earlier + sales in the latest period were $ N billion down from $ N billion in the N quarter + at st. <unk> general dynamics sales rose N N to $ N billion from $ N billion + it earned $ N million or $ N a share in the N quarter + general dynamics credited significant earnings gains in its general aviation and material service segments an earnings recovery in <unk> operations and higher military aircraft sales + northrop said sales fell because of the decline in b-2 development dollars from the government as the plane continues its initial production stage and because fewer <unk> fighter sections are being produced in its <unk> work with prime contractor mcdonnell douglas corp + in composite trading on the new york stock exchange northrop shares closed at $ N off N cents + general dynamics closed at $ N up N cents + northrop which since early N has declined to accept fixed-price contracts for research and development said earnings were hurt by excessive costs on a number of such contracts won years ago + among them were the <unk> electronic <unk> system for the <unk> fighter + northrop 's interest expense also soared to $ N million from $ N million a year ago + it said debt remained at the $ N billion that has prevailed since early N although that compared with $ N million at sept. N N + the backlog of <unk> orders at northrop on sept. N was $ N billion down from $ N billion a year earlier + for the nine months northrop reported a net loss of $ N million or $ N a share compared with profit of $ N million or $ N a share in N + sales dipped N N to $ N billion from $ N billion + at general dynamics factors reducing earnings in the military aircraft segment included higher levels of cost-sharing in development of the advanced tactical fighter and the high cost of an advanced version of the <unk> fighter + <unk> deliveries also have fallen slightly behind schedule although a return to the previous schedule is expected in N the company said + backlog at general dynamics rose to $ N billion from $ N billion + its interest expense surged to $ N million from $ N million + for the nine months general dynamics earned $ N million or $ N a share up marginally from $ N million or $ N a share on a N N rise in sales to $ N billion from $ N billion + lotus development corp. reported a surprisingly strong N N increase in third-quarter net income on a N N sales gain buoyed by strong demand for a new version of its N computer <unk> + the results topped analysts ' expectations and the earnings growth of competitors prompting traders to all but forget the <unk> delays that <unk> down the company for much of the past two years + yesterday in heavy national over-the-counter trading lotus shares rose to $ N up $ N apiece <unk> a <unk> <unk> of more than N N + lotus said net rose to $ N million or N cents a share on sales of $ N million + a year ago net was $ N million or N cents a share on sales of $ N million + for the nine months net of $ N million or N cents a share trailed the year earlier 's $ N million or $ N a share + sales rose to $ N million from $ N million the year earlier + in the first half lotus struggled to keep market share with costly promotions while customers <unk> the launch of N release N the upgraded <unk> software + lotus 's results were about N N higher than analysts ' average expectations and compared <unk> with the N N earnings rise reported a day earlier by rival microsoft corp. of redmond wash + the company said results were bolstered by <unk> to release N by previous customers and improved profit margins the result of <unk> controls + rick <unk> a goldman sachs analyst said lotus had upgrade revenue of about $ N million in the quarter twice what he had expected + also he estimated unit shipments of N in all its forms were about N up N N from N 's quarterly average + demand for the new version was enabling lotus to raise prices with distributors and to hold market share against microsoft and other competitors that tried to exploit the earlier delays in release N 's launch mr. <unk> added + he estimated that N <unk> microsoft 's <unk> <unk> by <unk> in the quarter and held a N N or better share of the <unk> market + silicon valley <unk> a sigh of relief yesterday + though details were <unk> in the aftermath of the violent earthquake that shook the high-tech <unk> along with the rest of the san francisco bay area a spot check of computer makers turned up little if any potentially <unk> damage to facilities or fabrication equipment + analysts and corporate officials said they expected practically no long-term disruption in shipments from the valley of either hardware or software goods + intel corp. advanced micro devices inc. and national semiconductor corp. were all up and running yesterday though many workers were forced to stay home because of damaged roadways others elected to take the day off + these systems are more <unk> than many people would believe said thomas <unk> who tracks the computer industry for merrill lynch research + it 's not the end of the world if you shake them up a little bit + other companies including international business machines corp. and hewlett-packard co. completely <unk> their operations because of tuesday evening 's temblor which registered N on the richter scale + personnel spent the morning <unk> buildings for structural weaknesses <unk> up water from broken pipes and clearing ceiling <unk> and other debris from factory floors + still many were confident that in a day or two everything should be back to normal according to a spokeswoman for the semiconductor industry association based in cupertino + ibm for instance said it anticipates returning to a normal work schedule by the weekend at its san jose plant which puts out disk drives for the N family of mainframes + a hewlett-packard spokeswoman said that while things are a big mess some N valley employees have been called back to work today + apple computer added that it was being cautiously optimistic despite not yet closely <unk> all of its N buildings in the region + even the carefully <unk> machinery in its giant <unk> plant to the north of the valley was believed to be <unk> + sun microsystems inc. and tandem computers inc. also signaled that they should recover quickly + digital equipment corp. with major facilities in santa clara cupertino palo alto and mountain view said that all of its engineering and manufacturing sites had reported to corporate headquarters in maynard mass. tuesday night + none sustained significant damage a spokesman said adding that the delicate manufacturing process machines were <unk> and were all found to be operating normally + for many companies of course there is still a slew of nagging problems to <unk> with some of which have the potential to become quite serious + for example a spokesman for advanced micro devices said the sunnyvale chip maker is worried about <unk> + a sudden surge or drop in electric power could <unk> integrated circuits being built + but given what might have happened to the fragile parts that are at the heart of the <unk> business the bulk of valley companies seemed to be just about shouting <unk> + several factors apparently <unk> the valley a <unk> suburban stretch from san jose to palo alto from the kind of impact felt in san francisco an hour 's drive north + for one thing buildings there tend to be newer and thus in step with the latest safety codes + also the soil in the valley is solid unlike the landfill of san francisco 's downtown marina district which was hit with fires and vast destruction + in addition some <unk> companies said they were prepared for <unk> conditions like tuesday 's + their machine tools are even <unk> to the shop floor + intel said that over the past decade it has installed computer <unk> and <unk> <unk> sensitive to the shake of an earthquake in the pipes that <unk> through its plants + like other large valley companies intel also noted that it has factories in several parts of the nation so that a breakdown at one location should n't leave customers in a total <unk> + that 's certainly good news for such companies as compaq computer corp. houston which has only a four-day supply of microprocessors from the valley on hand because of a <unk> manufacturing approach that limits the buildup of inventory + compaq said it <unk> no difficulties in obtaining parts in the immediate future + computer makers were scrambling to help customers recover from the disaster + digital equipment has set up <unk> response centers in dallas atlanta and colorado springs <unk> + these units were handling calls both from people in the san francisco area and from computers themselves which are set to dial digital automatically when trouble <unk> + they then run <unk> controlled <unk> programs + digital also said it has dispatched teams of technicians to california + meanwhile several other major installations around the valley america 's center of high-tech said they too fared as well as could be expected + lawrence <unk> national laboratory where the energy department tests and <unk> research on nuclear weapons had only <unk> damage a spokesman said + at lockheed corp. 's missiles and space systems group in sunnyvale about N miles south of san francisco workers were asked to head to work yesterday after it was realized that there were no <unk> in the <unk> buildings on its <unk> campus + several engineering and research offices needed closer scrutiny to make sure they were n't in danger of crumbling but the bulk of the place is in pretty good shape an official said + one of lockheed 's most lucrative sectors accounting for more than half the aerospace company 's $ N billion in sales in N the missiles and space group is the prime pentagon contractor on the <unk> ii <unk> missile + it also generates pieces of the missile shield called the strategic defense initiative + fortunately the <unk> space <unk> set to be launched on the shuttle next year in a search for distant solar systems and light <unk> N billion years ago from the <unk> reaches of the universe was moved from sunnyvale to the kennedy space center in florida at the beginning of october + john r. <unk> <unk> to this article + michael maynard offered the world a faster way to break eggs + as thanks the egg industry tried to break him + and the egg producers have done a pretty good job + they tried to put mr. maynard out of business by an act of congress + <unk> lobbying helped persuade six states to ban mr. maynard 's automatic <unk> machine because of fears over salmonella + his company <unk> manufacturing inc. was forced to seek protection from creditors under federal bankruptcy law in N and has since been liquidated + monthly sales of his egg king machine which he now is marketing through a new company have <unk> to about half a dozen from a peak of N says the <unk> businessman + mr. maynard is n't the first entrepreneur to <unk> up against entrenched interests + but his case is notable both for the scale of the fight it is n't often that a congressional hearing is held to determine whether one small businessman is a threat to the republic and for what it tells about the <unk> of marketing a new product + now one might ask why people who sell eggs would fight someone who is trying to make it easier to crack them + part of the answer lies in the nature of the industry + many larger egg producers are also egg processors who crack <unk> and <unk> billions of eggs turning them into <unk> <unk> or frozen egg products + however dozens of <unk> restaurant chefs and other food <unk> who <unk> to mr. maynard 's defense say that products ranging from egg bread to <unk> lose some zip when the eggs come in <unk> cans instead of <unk> + but for companies that use hundreds of eggs a day breaking them by hand can get well out of hand + the idea behind the egg king is pretty simple put the eggs into a <unk> that contains <unk> baskets spin them at a high speed to break the <unk> and strain the <unk> part through the baskets + one egg king which at just under four feet tall and two feet wide has been <unk> to the robot <unk> can crack about N eggs an hour + because fresh eggs are less expensive than processed ones a big egg user can recover the egg king 's $ N cost in a few months says mr. maynard + such <unk> egg breakers have been around since the <unk> + but when mr. maynard came forward with his machine in the early 1970s nobody else was offering them in the u.s. + the main reason salmonella + <unk> carry this bacteria which can cause upset <unk> and in rare cases death among people + <unk> sometimes pass salmonella to the eggs and it can also be found on <unk> <unk> + thus any machine that breaks large amounts of eggs at once has the potential to spread salmonella if a bad egg gets in with the good ones + mr. maynard claims this is a <unk> problem + the egg king carries written instructions to break only high-grade eggs that have been properly <unk> and as an added <unk> to use the eggs only in products that will be <unk> enough to kill bacteria + with nearly N machines in use there have been no salmonella problems as long as instructions were followed mr. maynard boasts + he says the handful of salmonella cases involving products that may have used eggs broken by an egg king stemmed from a failure to adequately cook the products + but he says that 's no more a reason for banning egg <unk> than bad drivers are a reason for banning cars + opponents do n't buy such arguments + human nature being what it is people do n't always follow instructions says jack <unk> chief of food protection for the new york state health department + leading the assault against the egg king has been united egg producers + the <unk> ga. trade group has issued a briefing book that claims the machine is a health hazard and that mr. maynard is trying to make a fast buck at the expense of the nation 's egg producers + the <unk> declines to comment but the group 's attorney alfred <unk> says the group 's actions are motivated solely by health concerns + an early <unk> was the u.s. department of agriculture + mr. maynard initially won approval for his machine to be used at <unk> facilities regulated by the <unk> 's food safety inspection service + unfortunately for mr. maynard another branch of the <unk> the agricultural marketing service was in charge of eggs + after receiving complaints from egg producers this branch got the other branch to <unk> its approval thus limiting the machine 's potential market to <unk> and restaurants and other <unk> that are n't regulated by the <unk> + the egg producers also lobbied the food and drug administration + but the fda in a N letter to the united egg producers said that there was little likelihood of a health problem as long as instructions were followed + so the producers went to capitol hill where a congressman from georgia introduced a measure to ban <unk> <unk> machines + mr. maynard whose company at the time was based in santa ana calif. <unk> his local congressman and the battle was joined + mr. maynard 's forces finally defeated the measure though it took a vote on the floor of the house of representatives to do it + even then opponents managed to get a congressional hearing to examine what one congressman called an unscrupulous method for breaking eggs + <unk> in their effort to get a national ban the egg producers turned their attention to the states + so far new york new jersey nebraska georgia michigan and minnesota have outlawed mr. maynard 's device citing health concerns + an antitrust suit that mr. maynard 's company filed in los angeles federal court against the united egg producers and others only added to the entrepreneur 's woes + the judge dismissed the suit and ordered mr. maynard 's company to pay over $ N in legal fees to the defendants ' lawyers + mr. maynard says the ruling pushed his company into bankruptcy court + now he has moved to oklahoma where costs are lower and started a new company <unk> inc. to market his machine + but so far the change of <unk> has n't ended his string of bad breaks + mr. maynard recently fell from a horse and <unk> his arm + <unk> pfeiffer ca n't <unk> gum and <unk> at the same time + but on the evidence of the <unk> baker boys that may be the only thing she ca n't do at least when she 's acting in movies + as the tough <unk> <unk> <unk> in the <unk> baker boys ms. pfeiffer <unk> for herself and more than <unk> well + her <unk> diamond handles a song the way the <unk> do like she 's hearing the way it should sound inside her head and she 's concentrating on matching that internal tone + yet her intensity stops and starts with the music + when she is n't performing for an audience she prepares for a song by removing the <unk> of gum from her mouth and indicates that she 's finished by sticking the gum back in + like almost everything in this <unk> romantic and <unk> movie ms. pfeiffer 's <unk> seems like someone you 've seen before in numerous <unk> stories even her name <unk> diamond sounds like a character <unk> <unk> must have played + yet nothing about baker boys and certainly nothing about ms. pfeiffer really is like something from the video vault + steve <unk> the young writer and director he is n't yet N has only one produced picture to his credit he wrote the <unk> for racing with the moon a lovely <unk> picture set in the <unk> + both movies are <unk> with the <unk> <unk> of someone much older someone who does n't dismiss dreams but who also has enough experience to see his limits + however mr. <unk> directs his own material without <unk> and at its own <unk> pace baker boys is both <unk> and funny + he 's put a fresh spin on material that could come off <unk> <unk> for example the way <unk> <unk> an audience the first time she <unk> with the baker boys + of course it does n't hurt that mr. <unk> has made up for his lack of experience behind the camera with technicians who know exactly what they 're doing + much of the picture 's <unk> emerges from <unk> michael <unk> 's <unk> <unk> lens work + after working for years with werner <unk> <unk> the late german director and more recently with martin <unk> after hours the color of money the last temptation of <unk> mr. <unk> has developed a <unk> <unk> style + and dave <unk> 's <unk> score <unk> the <unk> requirements of <unk> <unk> feelings is a must without <unk> + though ms. pfeiffer has the flashy part she gets the best comic <unk> and to wear glamorous <unk> and <unk> heels the boys are pretty great too + what seemed like a good idea to cast the bridges brothers jeff and <unk> as the baker brothers actually turned out to be a good idea + anyone who 's tried to appear natural in front of a camera knows that it 's much more natural to end up looking like a stiff + so it 's quite possible that the <unk> play between the brothers is n't natural at all that jeff and <unk> had to work like crazy to make their <unk> love and <unk> and frustration and rage seem so very real + when the movie opens the baker brothers are doing what they 've done for N years <unk> and twice as long as that for themselves they 're playing <unk> piano face-to-face on <unk> <unk> + they 're small time in the small <unk> not the best ones and restaurants in seattle + yet they do n't <unk> their audiences by <unk> their act + they wear <unk> most nights unless circumstances a regular <unk> at a <unk> <unk> for example require them to wear special <unk> like <unk> shirts + <unk> <unk> looking eager to please with his <unk> <unk> and round face plays the older brother frank + frank plans the program takes care of business and approaches the work like any other job + he 's even able to think of a job that takes him out of the house N nights a week as an ordinary job + he 's got a wife and two kids and a house in the <unk> the audience sees only the house and only near the end of the movie + frank <unk> a little for the <unk> probably no more or less than he would have to if he worked for a big corporation + on his <unk> he wears <unk> <unk> + jeff bridges is the younger brother jack who <unk> himself the <unk> artist he lives in a <unk> with his sick dog and the <unk> visit from the little girl <unk> who <unk> down the fire escape + yet jack 's the one who can remember every dive they ever played and when and he <unk> shows up for work night after night he <unk> himself with <unk> and by showing up at the last minute + looking <unk> than he has in a while the younger mr. bridges 's jack is <unk> and <unk> and a far <unk> case than frank who 's managed to <unk> his dreams to fit reality without feeling too <unk> + he can live with little <unk> + mr. <unk> has put together some <unk> moments + these include <unk> <unk> 's <unk> to be the baker boys ' girl singer + ms. <unk> of the <unk> voice showed great comic promise during her <unk> as the <unk> 's girlfriend on the television show hill street blues + here she <unk> especially during her <unk> awful <unk> of the candy man which she <unk> while <unk> around in a little cotton candy <unk> <unk> <unk> that could n't be more perfect + it matches her voice + and ms. pfeiffer 's particular version of making <unk> and the way mr. <unk> photographs her from the tips of her red high heels right up her <unk> red <unk> dress might make you think of <unk> <unk> if ms. pfeiffer had n't gone and become a star in her own right + video tip + if you 'd like to see the first time <unk> pfeiffer sang on screen and you have a lot of patience take a look at <unk> N + you 'll find her there + better yet check out the emergence of her comic <unk> in married to the <unk> jonathan <unk> 's <unk> mafia comedy + international proteins corp. definitively agreed to pay $ N million and N of its shares for hanson plc 's ground round restaurant subsidiary + shareholders of international proteins a food and <unk> company will vote on the transaction at a meeting late next month + hanson is a london producer of consumer and other goods + international proteins shares did n't trade yesterday on the american stock exchange + they closed tuesday in composite trading at $ N down N cents giving the stock portion of the transaction an indicated value of $ N million + control data corp. agreed to sell its idle supercomputer manufacturing plant here to minnesota mining & manufacturing co. for $ N million + the tentative agreement calls for <unk> to use the <unk> plant and N acres of land for research laboratories + control data has been seeking a buyer for the facility since it <unk> its <unk> systems inc. supercomputer unit this past april + general dynamics corp. was awarded contracts totaling $ N million for one navy <unk> <unk> and for air force research on the national aerospace plane + grumman corp. won a $ N million navy contract for N f-14 aircraft + <unk> co. was issued a $ N million air force contract for support of the <unk> communications satellite + mcdonnell douglas corp. got a $ N million air force contract for support work on the national aerospace plane + <unk> c. smith was named to the new post of vice president of world-wide advanced materials operations for this chemicals concern + mr. smith N years old was formerly responsible for advanced materials which include plastic <unk> and <unk> in north america only + <unk> is <unk> by montedison s.p a. of milan italy + <unk> co. said it will redeem all N shares of its privately held N N convertible series c preferred stock nov. N + holders can either convert each share into N shares of the company 's common stock or surrender their shares at the per-share price of $ N plus accumulated dividends of $ N a share + <unk> makes and markets products for the construction mining and energy industries + bank building & equipment corp. of america which previously said accounting discrepancies its auditors uncovered would hurt earnings and require <unk> of earlier results increased its projections of the negative fiscal impact and said it was exploring the company 's sale + bank building which builds and <unk> banks had announced it would <unk> the <unk> quarters of this fiscal year which ends oct. N + on oct. N the company estimated after-tax effects on the year 's earnings would be at least $ N million + yesterday the company said the negative after-tax effect on earnings for the year will be about $ N million + for the nine months ended july N bank building had a net loss of $ N million on revenue of $ N million + bank building which expects to report a fourth-quarter loss said it engaged advisers to explore financial alternatives for the company including the possible sale of the company or one or more of its units + company auditors are continuing their review and final restated figures are n't yet available + bank building earlier said the <unk> is <unk> by certain errors in recording receivables and <unk> at its <unk> cabinet division + that division 's manager has been fired + in american stock exchange composite trading bank building closed at $ N a share down N cents + gen. paul <unk> <unk> retired <unk> of the u.s. marine corps was elected a director of this plastics specialty materials and aerospace concern succeeding <unk> <unk> who resigned to accept a government position + rep. mary rose <unk> d. ohio at last week 's hearings on <unk> in programs at the department of housing and urban development + i do n't want to feel guilty representing my constituents + and if i think that some people on hud secretary jack kemp 's staff are off base in terms in which they 're evaluating certain things affecting my <unk> i have to tell you something i 'm not going to take it + i think that i 'm elected to represent the people that sent me here + and one of our charges is to be an <unk> for our area + and if we 're not <unk> for our area we ought to be thrown out of office + on the other hand if we 're asking for something <unk> or <unk> and so on then that 's a whole different story + but if i feel that there are situations where i 'm trying to get housing for our area whatever it happens to be and i have to feel that i ca n't even ask a question i 've got to tell you i think that 's <unk> + i think these regulations that would prohibit <unk> programs in areas across this country would be wrong to change + i do n't want to see some guidelines change that 's going to inhibit my city 's opportunity to use its money + the chicago mercantile exchange said it fined capcom futures inc. $ N and accepted its withdrawal from membership as part of a settlement of disciplinary actions against the firm + capcom futures is a chicago subsidiary of capcom financial services ltd. a london financial firm that was <unk> last year in a scheme to <unk> drug money + the case is pending + the firm was indicted in tampa fla. on <unk> charges + in june the chicago board of trade said it suspended capcom financial + the capcom futures unit withdrew from board of trade membership voluntarily in august a board of trade spokesman said + capcom futures while neither admitting nor denying the merc charges said in a statement that the merc charges were technical in nature and that no customers were hurt as a result of the violations cited by the merc + the merc alleged that among other things from april N through october N capcom futures failed to document trades between capcom futures and people or entities directly or indirectly controlled by capcom futures shareholders + frederick w. lang N years old the founder of this software services concern was elected to the new post of chairman + formerly president and treasurer mr. lang remains chief executive officer + victor c. <unk> N formerly executive vice president succeeds mr. lang as president and becomes chief operating officer a new post + maurice warren <unk> group managing director was named chief executive officer of this food and agriculture group + the post of chief executive has been vacant since july when terry <unk> N left the company + money-market mutual fund assets grew at nearly three times their usual rate in the latest week as investors opted for safety instead of the stock market + money-fund assets soared $ N billion in the week ended tuesday to a record $ N billion according to <unk> 's money fund report a <unk> <unk> newsletter + we were expecting it following the fall of the dow friday said <unk> <unk> <unk> editor of money fund report + it 's the <unk> flight to safety + despite recent declines in interest rates money funds continue to offer better yields than other comparable investments + the average seven-day compound yield on the N taxable funds tracked by <unk> 's was N N in the latest week down from N N + compound yields assume reinvestment of dividends and that current yields continue for a year + most short-term certificates of deposit are yielding about N N or less at major banks and the yields on treasury bills sold at monday 's auction fell to N N for three months and N N for six months + money-fund assets have been rising at an average rate of $ N billion a week in recent months ms. <unk> said reflecting the relatively high yields + in the latest week funds open to institutions alone grew by $ N billion + some fund managers say inflows could increase in coming days as a result of stock selling in the wake of friday 's N point drop in the dow jones industrial average + if you 're selling equities you do n't start getting proceeds for five to seven days said frank <unk> who manages the kemper money market fund + neal <unk> marketing vice president for fidelity investments said inflows friday into fidelity 's <unk> and cash reserves money-market funds were about twice normal levels with about half coming from equity and junk-bond funds + monday and tuesday were lackluster in comparison he said + people are n't necessarily running scared mr. <unk> said + they 're maintaining their attitude toward investing which has <unk> toward the conservative recently + money-fund yields tend to lag <unk> trends as portfolio managers adjust the maturities of their investments short-term treasury securities commercial paper and the like to capture the highest yields + maturities usually are shorter when rates are rising and longer when they are falling + the average maturity of the funds tracked by <unk> 's remained at N days for the third consecutive week + it was as short as N days at the start of this year when rates were <unk> steadily upward and hit N days in august + the average seven-day simple yield of the funds fell to N N this week from N N + the average 30-day simple yield was N N compared with N N the week before and the 30-day compound yield slid to N N from N N + some funds are posting yields far higher than the average + the highest yielding taxable fund this week was harbor money market fund with a seven-day compound yield of N N + that included capital gains that were passed along to customers + among the other <unk> funds fidelity 's <unk> fund had a seven-day compound yield of N N in the latest week + the seven-day compound yield of the dreyfus worldwide dollar fund was N N + whose della femina mcnamee wcrs agency created <unk> joe <unk> among others announced a massive restructuring that largely <unk> it from the advertising business and includes selling the majority of its advertising unit to <unk> eurocom + the complex restructuring which was long expected <unk> london-based wcrs from primarily a <unk> of advertising into one of europe 's largest buyers of advertising time and space + it also creates a newly merged world-wide ad agency controlled by eurocom and headed jointly by new york ad man jerry della femina and two top wcrs executives + the merged agency 's <unk> ambitious goal to become one of the world 's N largest agencies while attracting more multinational clients than the agencies were able to attract alone + wcrs 's restructuring reflects the growing importance of media buying in europe where the only way to get a good price on advertising time and space is to buy it in bulk + for eurocom meanwhile the move gives it a strong u.s. <unk> in della femina and more than <unk> the size of its ad agency business world-wide + it also gives the outspoken mr. della femina who often generates as much publicity for himself as for his clients an international platform that he most certainly wo n't be loath to use + according to terms wcrs will pay N billion french francs $ N million for the N N it does n't already own of carat holding s.a. one of europe 's largest media buyers + meanwhile eurocom which had held N N of wcrs 's ad unit will pay # N million $ N million to raise its stake to N N + that price also covers eurocom raising to N N its N N stake in europe 's <unk> group a joint venture ad agency network it owns with wcrs + eurocom will also have the right to buy the remaining N N of the merged ad agency group in six years + the transaction places the three executives <unk> at the helm of a major agency with the rather <unk> name of eurocom wcrs della femina ball ltd. or <unk> + the merged agency will include della femina mcnamee based in new york eurocom 's various agencies in france the <unk> group in europe and wcrs 's other advertising and direct marketing operations + mr. della femina will be joint chairman with former wcrs executive robin <unk> + both will report to tim <unk> a former wcrs executive who will be chief executive officer at the new agency + in an interview in new york mr. <unk> fresh from a <unk> flight from paris where executives had worked through most of the night outlined big plans for the new agency + our goal is to develop quite rapidly to a <unk> position by the end of three years from now + it implies very dramatic growth he said + he added that eurocom and wcrs had agreed to provide a development fund of # N million for acquisitions + the new agency group is already in discussions about a possible purchase in spain while mr. <unk> said it also plans to make acquisitions in <unk> germany and elsewhere + <unk> the top N within three years will be difficult at best + della femina had billings of just $ N million last year and ranked as the u.s. 's <unk> ad agency + the merged company that it now becomes part of will have billings of just more than $ N billion most of that in europe bringing it to about <unk> world-wide + to make it to <unk> status it would have to <unk> over such <unk> forces as grey advertising d'arcy <unk> benton & <unk> and <unk> 's ddb needham + the merged agency 's game plan to attract multinational packaged-goods advertisers may prove equally difficult + when wcrs created della femina mcnamee out of the merger of three smaller agency units in N it said it did so in order to attract larger clients especially packaged-goods companies + since then della femina won pan am as an international client and also does work for a few packaged-goods clients including dow chemical co. 's <unk> wrap + but major packaged-goods players of the world such as procter & gamble colgate-palmolive and unilever have <unk> <unk> the agency + three of our favorite names mr. della femina calls that <unk> adding hopefully we 're a much more attractive agency to large <unk> today than we were yesterday + still the restructuring could create one of the most powerful alliances between advertising and <unk> firms that europe has seen + as part of the restructuring wcrs and eurocom said they will look for ways to combine their media buying across europe + what 's more both eurocom and brothers francis and <unk> gross who founded carat will acquire N N stakes in wcrs group creating a powerful link between eurocom and carat + carat will receive its wcrs stake as part of payment for the N N carat stake that wcrs is buying while eurocom said it expects to pay about # N million for its wcrs stake + mr. della femina says he plans to remain heavily involved in the creative product at the world-wide agency serving as a sort of creative <unk> + <unk> mcnamee della femina 's president will continue running the u.s. agency day-to-day + they and other top executives signed long-term employment contracts and mr. della femina will receive an additional multimillion-dollar sum which some industry executives pegged at about $ N million + wcrs group for its part will now be able to follow its longstanding plan of becoming a holding company for a series of <unk> businesses said peter scott the firm 's chief executive + in addition to carat wcrs will hold onto its public relations tv programming and other businesses + wcrs says its debt will be cut to # N million from # N million as a result of the transaction + for carat meanwhile the alliance with eurocom and wcrs is intended to strengthen its own push outside france + carat 's gross brothers invented the idea of large-scale buying of media space + by buying the space in bulk they obtain discounts as high as N N which they can pass on to customers + they thus have won the french <unk> business of such advertising giants as coca-cola co. fiat s.p a. gillette and kodak + but now other agencies are getting into the business with their own competing <unk> groups and carat wants to expand to the rest of europe + to help finance the carat purchase wcrs said it plans an issue of <unk> preferred shares once the market <unk> down + but wcrs added that in the light of the current uncertainty in the equity markets it has arranged <unk> debt financing which would be underwritten by samuel <unk> & co. ltd + earthquake 's damage + tuesday 's earthquake brought the san francisco ad scene to a <unk> halt yesterday with only a few staffers showing up at their offices mainly to survey the damage or to <unk> their hands about imminent <unk> <unk> + while no agencies reported injuries to employees the quake damaged the offices of j. walter thompson <unk> and ddb needham among others spokesmen for those agencies said + staffers at thompson whose offices are in the <unk> <unk> center watched pictures drop from the walls and then felt the <unk> <unk> seven to eight feet according to a spokeswoman + <unk> fell and windows were broken at <unk> a spokesman for that agency said + late yesterday afternoon ddb needham executives were scrambling to figure out what to do about a new business presentation that had been scheduled for today a spokesman said + ddb needham 's office building may have sustained structural damage the spokesman added + all operations have stopped he said + a number of agencies including thompson and <unk> <unk> & <unk> said some employees who live outside of san francisco fearful that they would n't be able to get home spent the night at the agency + ad notes + new account + <unk> 's inc. greenwich conn. awarded its faberge hair care accounts to j. walter thompson new york + thompson a unit of wpp group will handle faberge organic <unk> and <unk> and <unk> net <unk> + the accounts which billed about $ N million last year according to leading national advertisers were previously handled at bozell new york + who 's news + william <unk> N was named executive vice president world-wide director of <unk> direct the direct marketing unit of interpublic group 's <unk> agency + he had been president and chief operating officer of ogilvy & mather direct + bozell + los angeles will be the site of a new entertainment division for the ad agency + the division will be headed by dick porter who returns to bozell after being vice president of media at mgm + <unk> advertising + the agency 's three california offices previously called <unk> advertising will now be called <unk> advertising to match the name of its new york office + <unk> advertising is a unit of saatchi & saatchi co + new beer + <unk> products inc. greenwich conn. awarded its <unk> <unk> light beer account to <unk> & associates new york + budget is set at $ N million + the new beer introduced this week at a liquor industry convention is imported from switzerland 's <unk> brewery + <unk> 's first ads for the brand which <unk> says will compete with imported light beer leader <unk> light feature the line the best <unk> light beer you 've ever seen + <unk> motors corp. a joint venture of chrysler corp. and mitsubishi motors corp. said it will begin shipping mitsubishi <unk> cars to japan next week <unk> other japanese auto ventures shipping <unk> vehicles back to japan + <unk> said it will export about N <unk> cars to japan by year 's end + honda motor co. the first japanese auto maker to ship cars to japan from the u.s. is now exporting more than N accord <unk> a year from its <unk> ohio factory + one of the most remarkable features of the forced <unk> of the ethnic <unk> out of <unk> over the past five months has been the lack of international attention + the <unk> of more than N men women and children by the <unk> regime adds up to one of the largest <unk> seen in the postwar years + yet some people are advancing a <unk> <unk> that what we are seeing is somehow the <unk> result of the historical <unk> committed by the <unk> in the <unk> century + today 's <unk> in <unk> in other words deserve what is coming to them four centuries later + as if this were n't enough the senate judiciary committee is getting into the act + on tuesday it approved senator bob dole 's proposed <unk> resolution <unk> april N N as the national day of <unk> of the <unk> anniversary of the <unk> <unk> of N suffered at the hands of the <unk> <unk> empire + there can be no <unk> that the <unk> <unk> terrible suffering but one has to wonder what possible good such a resolution will achieve + it puts great strain on a longstanding u.s. friendship with turkey a country that has been one of america 's strongest allies in nato + the resolution also comes at a time when turkey has been seeking help from the united states in <unk> its <unk> emigration controversy and pursuing democratic reforms that may lead to membership in the european community + turkey has been fighting its past for years and thus far has been only partially successful + must it now accept that one of its strongest allies blames it for the <unk> of another people + such sentiment only encourages the adverse feelings toward turkey that surfaced when turkey asked for assistance in dealing with its <unk> emigration crisis + mr. dole 's odd effort notwithstanding most of turkey 's political problems lie with the europeans + part of the problem some europeans have with turkey seems to stem from its location turkey is n't really part of europe + why they wonder should it belong to the ec + another <unk> hook is the <unk> faith of the majority of the <unk> people turkey we are told is not a christian nation its people simply wo n't fit in with the western european <unk> tradition + it 's when these <unk> fall on <unk> <unk> that the old <unk> of <unk> for treatment at the hands of the <unk> empire comes to the <unk> + no one has to accept the <unk> of the <unk> empire to reject that argument + turkey in any event is long past it + the country has in recent years accepted more than N refugees from at least four <unk> nations + <unk> suffering what many people consider to be a current <unk> campaign at the hands of <unk> iran and <unk> have <unk> eastern turkey + now it is their fellow <unk> <unk> as refugees from <unk> + the <unk> <unk> tragedy and the ongoing crisis can not be ignored and <unk> off to that notorious <unk> of history that has become so convenient recently + surely the past suffering of any people at any time can not be simply filed away and forgotten + but what the senate judiciary committee has done in supporting the strongly <unk> <unk> resolution <unk> no useful end it merely produces more controversy and <unk> memories + congress has enough difficulty dealing with the realities of the world as it currently exists + <unk> 's government has been <unk> beyond the pale for months and the u.s. does its values no credit by ignoring that while casting its votes into the past + many in washington say president bush will have to raise taxes to pay for his war on drugs + we have a better idea <unk> hud to pay for the war on drugs + housing and urban development 's budget is $ N billion + from what we and the nation have been reading the money is n't being spent very well + the single most important contribution the government could make now to help the poor is to get the specter of drugs out of their neighborhoods + if that takes money take it away from this <unk> federal department + but of course the democrats <unk> hud in hearings and in the press have no such solution in mind + instead they 're scrambling to protect the very programs at the heart of the hud scandal + this month hud secretary jack kemp unveiled a series of proposed reforms to improve management at hud + no doubt many of his ideas are worthy but ultimately he is proposing to make fundamentally flawed programs work slightly more fairly and efficiently + congress is unlikely to go even that far + last week secretary kemp ran into a <unk> of criticism from house banking committee members + they were <unk> for instance that he wanted to target more of the $ N billion community development block grant <unk> program to low-income projects and zero out the notorious discretionary funds that have allowed hud officials to steer contracts to political <unk> + these development grants mainly <unk> developers who want to put up shopping centers and parking <unk> + they also give those in congress political credit for bringing home the pork and so they are popular with such members as mary rose <unk> + rep. <unk> a democrat from cleveland wants a $ N million grant so cleveland can build an <unk> rock and roll hall of fame + she says it 'd create N jobs and bring cleveland tourist revenue + hud says the project does n't qualify and mr. kemp says that rock <unk> roll musicians and the music industry ought to put up the money + at the hearing rep. <unk> started <unk> about <unk> <unk> regulations that would stand between her and housing for downtown cleveland + rep. <unk> <unk> an ohio republican rallied to the cause i think the <unk> is making an important statement + the implication that if a congressman calls about a project in his district there 's something wrong i think is most unfortunate + we 're sure some <unk> can explain the difference between what the republican consultants have been doing with hud and what these <unk> and <unk> want to do with hud + our view is that given congress 's attitude toward hud the place probably is beyond reform + for more than N years the federal government has tried various ways to provide housing for the poor and revive cities + in the process hud has wasted <unk> billions created <unk> and invited corruption + much of hud 's spending actually is <unk> welfare for developers or the middle class + that includes the <unk> funds and the federal housing administration which loans out money for private home mortgages and has just been discovered to be $ N billion in the hole + selling the fha 's loan portfolio to the highest bidder would save the taxpayers <unk> billions in future losses + some hud money actually does <unk> down to the poor and <unk> out housing middlemen would free up more money for public housing tenants to manage and even own their units + the rest ought to be used to clean out drugs from the <unk> + rival gangs have turned cities into combat zones + even suburban prince george 's county md. reported last week there have been a record N killings there this year most of them drug-related + innocent <unk> often are the victims + a man in a <unk> was <unk> down in the <unk> of a miami drug battle + a <unk> brooklyn boy was used as a shield by a drug dealer + decent life in the inner cities wo n't be restored unless the government <unk> the streets from the drug gangs + until then the billions hud spends on inner-city housing simply is wasted + it 's still unclear whether secretary kemp wants to completely overhaul the engine room at hud or just tighten a few <unk> here and there + no doubt he believes the place can be <unk> + having seen the <unk> with which congress has addressed the hud scandals we disagree + it 's time to scrap the politically <unk> spending machine hud has become and channel the resources into the drug war + <unk> <unk> was named chairman and chief executive officer of this grocery chain + mr. <unk> N years old succeeds <unk> <unk> jr. who died in a plane crash on sunday at the age of N + <unk> <unk> retains his position as president + natural <unk> and most particularly earthquakes are not only horrible realities in and of themselves but also <unk> through which the state of a society can be <unk> + the rubble after the <unk> earthquake a year ago disclosed quite literally a city whose larger structures had been built with sand + the extent of the disaster stemmed from years of <unk> and bureaucratic <unk> + the larger parallel after the earthquake centered south of san francisco is surely with the state of the u.s. economy + did the stock-market tremors of friday oct. N <unk> larger <unk> far greater <unk> + are the engineering and architecture of the economy as vulnerable as the <unk> of the bay bridge + the <unk> <unk> of the <unk> era has produced <unk> <unk> about the present <unk> of u.s. economic and social arrangements + a licensed government intellectual francis <unk> recently announced in the national interest that history is so to speak at an end since the course of human progress has now <unk> in the <unk> full stop of american <unk> + his <unk> were taken seriously + but we are in reality <unk> the continuing decline of the political economy of capitalism not so much the end of history but the history of the end + the financial equivalent of the sand used by those <unk> contractors is junk bonds and the leveraged buy-outs associated with them + builders get away with using sand and financiers junk when society decides it 's <unk> necessary even to look the other way + and by the early 1980s u.s. capitalists had ample reason to welcome junk bonds to look the other way + by that time they found extremely low profit rates from <unk> corporate investment + government statistics in fact show that the profit rate net pretax profits divided by capital stock peaked in N at N N + that same <unk> saw profit rates fall to N N in the recession year N and the supposed <unk> that followed has seen the profit rate rise only to N N in N and N N in N + corresponding to the fall in profit rates was in the early 1980s the drop in the number arrived at if you divide the market value of firms by the replacement costs of their assets the famous <unk> ratio associated with prof. james <unk> + in theory the value attached to a firm by the market and the cost of replacing its assets should be the same + but of course the market could decide that the firm 's capital stock its assets means nothing if the firm is not producing profits + this is indeed what the market decided + by N the ratio was N N meaning that the market was <unk> every dollar 's worth of the average firm 's assets at N cents + from the history of capitalism we can take it as a sound bet that if it takes only N cents to buy a dollar 's worth of a firm 's capital stock an alert entrepreneur wo n't look the other way + his assumption is that the underlying profitability rate will go up and the capital assets he bought on the cheap will soon be producing profits thus restoring the market 's faith in them + hence the lbo craze + but here is where the entrepreneur made a very risky bet and where society was maybe <unk> to look the other way + the profit rate is still low and the <unk> ratio was only N N in N and N N in N + result a landscape <unk> with <unk> huge debt burdens <unk> down upon the <unk> and <unk> of corporate america + the mounting risks did not go <unk> even in the mid-1980s + but there were enough <unk> announcing the end of history in this case suspension of normal laws of economic <unk> for society to continue <unk> its eyes + mainstream economists and <unk> <unk> their <unk> up at the great <unk> of junk financing <unk> their heads to watch the <unk> of leveraged buy-outs claimed the end result would be a <unk> <unk> corporate america with soaring productivity and profits and the weaker gone to the wall + but this is not where the rewards of junk financing were found + the beneficiaries were those financiers whose <unk> was the topic figure of '80s capitalism michael <unk> 's $ N million salary in one year + <unk> economists i associate with <unk> in the union of radical political economists most particularly robert <unk> of the economics faculty at the university of california at <unk> were not <unk> in the manner of their <unk> colleagues + all along they have been noting the tremors and pointing out the underlying realities + profit rates after the great merger wave are no higher and now we have an extremely high-interest burden relative to cash flow + the consequences of building <unk> with sand are showing up + in contrast to previous estimates <unk> the default rate on junk bonds at N N or N N a harvard study published in april of this year and discussed in a lead story in the wall street journal for sept. N found the default rate on these junk bonds is N N + what is the consequence of a high-interest burden high default rates and continued low profitability + corporations need liquidity in the form of borrowed funds + without liquidity from the junk-bond market or cash flow from profits they look to the government which <unk> <unk> the natural <unk> of the capitalist economy with charity in the form of cuts in the capital-gains tax rate or <unk> + the consequence can be inflation brought on as the effect of a desperate bid to avoid the <unk> shock of a sudden crash + attacks on inflation come with another strategy of capital of a very traditional sort an assault on wages + mr. <unk> <unk> through <unk> at the end of history said in his <unk> that the class issue has actually been successfully resolved in the west + the <unk> of modern america represents the essential achievement of the <unk> society <unk> by <unk> + mr. <unk> might want to <unk> some american workers on the subject of class and <unk> + from its peak in N of $ N the average american weekly wage had fallen to $ N in N both figures being expressed in N dollars + in other words after the glory boom of the reagan years wages had <unk> from the post world war ii peak by N N as capitalists helped by the government turned down the <unk> or went offshore + but there are signs now the strikes by miners boeing workers telephone workers etc. that this attack on wages is being more fiercely resisted + these are long-term richter <unk> on american capitalism + the whole structure is extremely shaky + governments have become sophisticated in handling moments of panic a word the london times <unk> my father to use when he was reporting the wall street crash in N + but <unk> has its limits + the s&l bailout could cost $ N billion computing interest on the government 's loans + these are real costs + under what <unk> will the federal deposit insurance corporation <unk> + capitalism may now be engineered to withstand sudden shocks but there are fault lines the crisis in profits the assault on wages the structural <unk> of the system that make <unk> of those who claim that the future is here and that history is over + mr. <unk> is a columnist for the nation and la weekly + japan air lines lufthansa german airlines and air france reportedly plan to form an international air-freight company this year a move that could further consolidate the industry + japanese newspaper <unk> <unk> <unk> reported that the three giants plan to integrate their cargo computers and <unk> and <unk> systems + they reportedly will invest a total of N billion yen $ N million in the venture whose headquarters would be in france or west germany + the action follows federal express corp. 's acquisition of flying tiger line inc. in august + after that it would make sense for airlines to talk about doing things jointly said cotton daly director of cargo services for new york consulting firm <unk> <unk> & <unk> inc + mr. daly said such discussions are motivated by the competitive threat posed by federal express united parcel service of america inc. and other fast-growing air-freight companies + many airlines are talking about cargo ventures and there have been rumors about such a tie between jal and european airlines + in tokyo a jal spokesman said he could n't confirm or deny the latest japanese report + but he said jal is talking to lufthansa and air france about some sort of cargo venture + it is just one of a number of strategies jal has <unk> upon to come to terms with the situation in europe after N the deadline for ending trade barriers in the ec he said + in frankfurt a lufthansa spokesman confirmed talks are under way but declined to comment + a lufthansa spokeswoman in tokyo said the head of lufthansa 's cargo operations had been in <unk> last week for talks with jal + in paris air france declined to comment + nothing is defined or signed at this point mr. daly said of the talks + whatever accord the three carriers reach he said he is skeptical it would create a separate airline + if the three companies pool their air-freight businesses their clout would be considerable + according to figures from the international air transport association they carried a combined N million tons of freight last year + federal express and flying tiger as separate companies carried a combined N million tons + air france and lufthansa last month concluded a far-reaching cooperation accord that includes air-freight activities + they plan to increase cooperation in freight <unk> and create a world-wide computer system to process cargo + other airlines would have access to the system they said and negotiations with partners were already under way + both european airlines operate extensive fleets of boeing N <unk> and N <unk> aircraft that carry both freight and passengers on the main deck + they currently have large orders for cargo planes + several airlines including lufthansa jal and cathay pacific airways are working on a so-called global cargo system and are trying to attract other carriers to join mr. daly said + jal also has signaled it is looking for <unk> in europe before the end of N + last month the carrier said it wanted to lease crews and planes from british airways so it could <unk> its passengers from london to other european <unk> + british airways said it has n't received a proposal from jal + but last week there were <unk> negotiations between the u.k. and japan a likely first step to any commercial agreement between jal and british airways or another u.k. carrier + federal paper board co. said it completed the previously announced purchase of imperial cup corp. a closely held maker of paper <unk> based in <unk> ohio + terms were n't disclosed + imperial cup has annual sales of approximately $ N million + federal paper board sells paper and wood products + in a move to prevent any <unk> in the financial markets from the california earthquake the securities and exchange commission said it temporarily <unk> options listed on the pacific stock exchange to the american new york and philadelphia stock exchanges and to the chicago board options exchange + the decision which affects millions of dollars of trading positions was made late yesterday because the pacific exchange 's options floor was shut down as a result of tuesday 's earthquake + the sec faced with a major squeeze on options positions said it was necessary to ensure that options listed on the exchange could be traded today and tomorrow + sec chairman richard breeden said the cooperation by the exchanges would enable investors to buy and sell options listed solely on the pacific exchange <unk> the liquidity of the market + officials at the four exchanges said well over N traders from the pacific exchange were taking flights from san francisco late yesterday to the american new york and philadelphia exchanges and to the cboe where they would continue making markets in the <unk> options + the big board said <unk> quickly <unk> a new options floor to <unk> N traders from the pacific exchange + in addition specialists on the exchanges agreed to provide backup capital for <unk> in pacific exchange options traded on the exchanges + trading was light on the pacific stock exchange yesterday with workers at the exchange 's main floor in san francisco struggling to execute orders by <unk> as a result of a continuing power <unk> + the most pressing problem was the suspension of options trading + the pacific exchange has options for N underlying stock issues including highly active hilton hotels corp. which is listed on the big board + investors were concerned that they might be unable to exercise options that expire tomorrow + but professionals said throughout the day that the shutdown would n't be a cause for alarm even if it were to <unk> for several days + i 've told my staff and clients that they still have the ability to exercise their options because they are guaranteed by the options clearing corp. said michael schwartz a senior registered options strategist at oppenheimer & co + the sec <unk> trading in the options however to allow investors to do more than simply exercise the options + while the exchange 's equities floor in san francisco remained open on a limited basis orders were being <unk> and executed in los angeles + workers could dial out but they could n't receive telephone calls + it 's a very uncertain situation right now said <unk> <unk> administrative assistant of trading floor operations of the exchange which has daily volume of about N million shares + because the exchange 's computer was <unk> orders to the exchange 's trading operations in los angeles business is as usual mr. <unk> said + if one city is down the other can take over + meanwhile the brokerage firms in san francisco were trying to cope + charles <unk> chairman and chief executive officer of <unk> & co. said traders came to work at N a.m. <unk> many on foot because of uncertain road and traffic conditions but learned that they would have to await a required inspection by the city in order to turn the power back on at the company 's two main facilities there + that should happen by today he said + traders worked with the help of <unk> <unk> through windows despite large cracks in the walls and a lack of <unk> phone calls + also most of the telecommunications equipment was out + the traders were executing municipal bond mutual fund and other orders through a sister firm tucker anthony inc. which is also owned by john hancock freedom securities but is based in new york + we are having a regular day + volume is down out of san francisco but not out of the N <unk> offices mr. <unk> added + <unk> 's oakland office executed orders through the sacramento office which was n't affected by the quake + others like prudential-bache securities inc. which has eight offices in the san francisco area set up an N number yesterday morning for customers to obtain market commentary and other help + at kidder peabody & co. 's sacramento branch manager <unk> white received calls yesterday morning from workers in san francisco who offered to work in sacramento + then she discovered that quotron systems inc. 's sacramento lines were down because they are normally tied in through a system that goes through san francisco + so the kidder brokers had to call other company offices to get quotes on stocks + at quotron the company 's national <unk> center which swung into action for the first time last month for hurricane hugo assembled a tactical team at N a.m. yesterday to begin <unk> lines and restore service to brokers and traders + the company dispatched as many as N people in the san francisco area to do the work though most of the <unk> was done by computer + service appeared to be down throughout the financial district in downtown san francisco while just parts of oakland and san jose were knocked out + but dale irvine director of the emergency center said service was being restored to <unk> san francisco areas + in chicago yesterday options clearing confirmed that it guarantees the pacific exchange options + the firm also will permit its members and the public to exercise their put and call options contracts traded on the pacific exchange even if the exchange is closed said wayne <unk> chairman of options clearing + put options give holders the right but not the obligation to sell a financial instrument at a specified price while call options give holders the right but not the obligation to buy a financial instrument at a specified price + investors and traders in pacific exchange options are protected to the extent that they can convert their put and call options into the underlying instrument mr. <unk> said + we are seeing such exercises today in fact + international business machines corp. said its board approved the purchase of $ N billion of its common shares a move that should help support its battered stock + even as the stock market has generally done well this year ibm 's shares have slipped steadily from its 52-week high of $ N + yesterday 's closing price of $ N down N cents in composite trading on the new york stock exchange puts the stock at about N N times book value which is as low as it has <unk> over the past decade + the announcement came after the market 's close + the move by ibm was n't exactly a surprise + the company has spent some $ N billion over the past N N years to buy back N million common shares or roughly N N of those outstanding + in addition despite ibm 's <unk> recent problems the computer giant still generates enormous amounts of cash + as of the end of the second quarter it had $ N billion of cash and <unk> securities on hand + as a result some securities analysts had predicted in recent days that ibm would <unk> additional purchases + in armonk n.y. a spokesman said that although ibm did n't view its spending as necessarily a way to support the stock it thought the purchases were a good way to improve such financial measurements as per-share earnings and return on equity + we view it as a good long-term investment the spokesman said + in the short term the move is likely to have little effect + at yesterday 's closing price $ N billion would buy back about N million shares or less than N N of the roughly N million outstanding + in addition as of sept. N the company still had authorization to buy $ N million of stock under a prior repurchase program + over the long term however ibm 's stock <unk> along with its hefty $ <unk> annual dividend and generally loyal following among large institutional investors are providing a floor for the stock price + although ibm last year produced its first strong results in four years and was expected to continue to roll this year it began <unk> as early as january + first it had trouble manufacturing a chip for its mainframes ibm 's bread-and-butter business + then it had a series of smaller <unk> including problems manufacturing certain personal computers and the delay in the announcement of some important workstations + finally ibm had to delay the introduction of some high-end disk drives which account for N N of its $ N billion of annual revenue + none of the problems is necessarily fatal and they are n't all necessarily even related + there are also other factors at work that are outside ibm 's control such as currency exchange rates + the strong dollar which reduces the value of overseas earnings and revenue when they are translated into dollars is expected to knock N to N cents off ibm 's per-share earnings for the full year + without that problem ibm might have matched last year 's earnings of $ N billion or $ N a share + still investors will take some convincing before they get back into ibm 's stock in a big way + steve <unk> a securities analyst at first boston said that while investors were looking for an excuse to buy ibm shares a year ago even the big institutional investors are looking for a reason to avoid the stock these days + on wall street yesterday northern california 's killer earthquake was just another chance to make a buck + at the opening bell investors quickly began <unk> out shares of companies expected to profit or suffer in some way from the california disaster including insurers <unk> companies refiners and housing lenders + brokerage houses jumped in touting <unk> demand stocks and kidder peabody & co. set up a <unk> hot line for san <unk> who might need emergency investment advice and help in <unk> funds + wall street thinks of everything in terms of money says tom <unk> a senior oppenheimer & co. trader + however he added such <unk> trading moves typically last only a few hours and are often made without full information + the most popular plays of the day were insurance companies such as general <unk> corp. which rose $ N to $ N <unk> <unk> corp. up $ N to $ N american international group inc. up $ N to $ N and cigna corp. up N cents to $ N + yesterday the brokerage firm <unk> & co. said insurers will use the earthquake as an excuse to raise insurance rates ending their long price wars + before this bullish theory surfaced some insurance stocks initially fell indicating that investors thought the quake might cost insurers a lot of money + in fact fireman 's fund corp. which ended the day off N cents to $ N said earthquake damage would slightly hurt fourth-quarter profit + on the prospect for rebuilding northern california investors bid up <unk> <unk> co. up $ N to $ N and lone star industries inc. up $ N to $ N + bridge and road builders had a field day including <unk> corp. up $ N to $ N guy f. <unk> co. up N to $ N and morrison <unk> corp. which reported higher third-quarter earnings yesterday up $ N to $ N + fluor corp. a construction engineering firm gained N cents to $ N + but <unk> stocks were a mixed bag + <unk> stocks got a big boost + georgia pacific corp. up $ N to $ N and <unk> inc. up $ N to $ N both reported strong profits + merrill lynch & co. touted georgia-pacific louisiana pacific corp. and <unk> industries inc. as the best <unk> <unk> plays + other gainers were companies with one or more <unk> california refineries + <unk> corp. jumped $ N to $ N and chevron corp. despite a temporary pipeline shutdown rose $ N to $ N + meanwhile shares of some big housing lenders got hit on the likelihood that the lenders ' collateral people 's homes suffered physical damage and perhaps a loss in value + wells fargo & co. fell N cents to $ N and bankamerica corp. fell N cents to $ N + some california thrift stocks also fell including golden west financial corp. and h.f. ahmanson & co. which reported lower earnings yesterday + property values did n't go up in california yesterday says one money manager + pacific gas & electric co. fell N cents to $ N + one of its power <unk> was damaged though the company said there wo n't be any financial impact + pacific telesis group lost N cents to $ N + a computer failure delayed its earnings announcement and some investors think it might have extra costs to repair damaged telephone lines + heavy construction <unk> insurance and forest products were among the best performing industry groups in the dow jones equity market index yesterday + friday 's stock market plunge claimed its second victim among the scores of futures and options trading firms here + petco options an options trading firm owned by the family of the <unk> former chicago board of trade chairman ralph peters is getting out of the trade clearing or processing and <unk> business after <unk> a <unk> dollar loss friday options industry officials said + nearly N options traders on the chicago board options exchange who cleared trades through petco including a handful of traders who lost between $ N to $ N million themselves as a result of friday 's debacle are trying to transfer their business to other clearing firms cboe members said + timothy vincent petco chief executive officer confirmed that petco was <unk> from the clearing business + the owners of the company got a look at the potential risks in this business and after monday they felt they did n't want to be exposed any more he said + he added that petco remained in compliance with all industry capital requirements during the market 's rapid plunge friday and monday 's rebound + a cboe spokeswoman declined comment on petco + over the weekend fossett corp. another options trading firm transferred the clearing accounts of about N traders to first options of chicago a unit of continental bank corp. because it could n't meet regulatory capital requirements after friday 's market slide + the unprecedented transfer of accounts underscored the options industry 's desire not to have its credibility <unk> by potentially widespread trading defaults on monday + the cboe american stock exchange options clearing corp. and stephen fossett owner of fossett joined in putting up $ N million to guarantee the accounts at first options + the head of another small options clearing firm who asked not to be identified said that the heightened volatility in the financial markets in recent years makes it increasingly difficult for any but the largest financial trading firms to shoulder the risk inherent in the highly leveraged options and futures business + prior to the introduction of financial futures in the late 1970s most trading firms <unk> around the <unk> street financial district here were family operations handed down from one generation to the next + most also were relatively <unk> compared with the size of most wall street securities firms + mr. peters a <unk> street <unk> among the <unk> war ii generation of commodity traders was rumored to have <unk> a multimillion-dollar fortune from commodity trading and other activities by the time he died in may + part of a series + <unk> <unk> is a <unk> <unk> and <unk> in rural <unk> county n.j + but put her behind a shopping <unk> and she turns <unk> + if colgate <unk> offers a <unk> <unk> coupon she 'll cross crest off her shopping list without a second thought + never mind that her husband prefers crest + some weeks when her supermarket runs a <unk> promotion she boasts that she <unk> $ N off her bill + money is n't the only thing that makes her dump once favorite brands + after she heard about the <unk> hazards of <unk> oils in many <unk> she dropped <unk> farm and started buying brands free of such oils + i always thought <unk> farm was <unk> and high quality mrs. <unk> says + but i do n't want any of that oil for my <unk> + <unk> farm says it ca n't tell exactly how many customers it has lost but it hopes to remove the <unk> <unk> oil from all its products by year end + clearly people like mrs. <unk> are giving marketers fits + she represents a new breed of <unk> consumer who puts bargain prices nutritional and environmental concerns and other priorities ahead of old-fashioned brand loyalty + while brand loyalty is far from dead marketing experts say it has eroded during the 1980s + marketers themselves are partly to blame they 've increased spending for coupons and other short-term promotions at the expense of <unk> advertising + what 's more a flood of new products has given consumers a dizzying choice of brands many of which are virtually carbon copies of one other + marketers have brought this on themselves with their heavy use of promotions contends joe <unk> an executive vice president at the d'arcy <unk> benton & <unk> ad agency + without some real product improvements it 's going to be difficult to win that loyalty back + the wall street journal 's american way of buying survey this year found that most consumers switch brands for many of the products they use + for the survey peter d. hart research associates asked some N consumers including mrs. <unk> whether they usually buy one brand of a certain type of product or have no brand loyalty + more than half the users of N of the N products included in the survey said they 're brand <unk> + overall N N of consumers are n't brand loyal for any of the N product categories + about N N are loyal for one to five of the products + only N N are brand loyal in N to N of the categories and no one is loyal for more than N types of products + for such products as <unk> <unk> and athletic shoes <unk> to a single brand was quite low with fewer than N N saying they usually buy the same brand + only for cigarettes <unk> and <unk> did more than N N of users say they typically stick with the same brand + people tend to be most loyal to brands that have distinctive <unk> such as cigarettes and <unk> + <unk> <unk> a <unk> in the journal survey from <unk> wash. says her husband is <unk> about eating only hunt 's <unk> + he simply ca n't <unk> the taste of <unk> she says + the <unk> <unk> adds the only other thing i 'm really loyal to is my virginia <unk> cigarettes + coke and pepsi are all the same to me and i usually buy whichever brand of coffee happens to be on sale + brand <unk> plays a significant role in loyalty to such products as cigarettes <unk> and beer + people often stay with a particular brand because they want to be associated with the image its advertising <unk> whether that 's <unk> <unk> cigarettes or <unk> 's <unk> <unk> + loyalty <unk> most for <unk> products like trash bags and <unk> + only N N of <unk> users in the journal survey usually buy the same brand and just N N of battery buyers stick to one brand + underwear scored a <unk> N N in brand loyalty but consumer researchers say that 's actually quite high for such a mundane product + in the past you just wore fruit of the <unk> and did n't care says peter kim u.s. director of consumer behavior research for the j. walter thompson ad agency + the high score reflects the attempts to make underwear more of a fashion image business for both men and women + he believes there 's opportunity for a smart gasoline marketer to create a strong brand image and more consumer loyalty + what loyalty there is to gas brands he believes is a matter of <unk> at the most <unk> located service stations + brand loyalty was stronger among older consumers in the journal survey + nearly <unk> of participants age N and older claim brand loyalty for more than N of the N products in the survey only N N of those age N to N have such strong <unk> + <unk> people also tend to be more brand loyal these days the journal survey and other research studies indicate + marketers speculate that more affluent people tend to lead more pressured lives and do n't have time to research the products they buy for the highest quality and most reasonable price + an established brand name is insurance that at least the product will be of acceptable quality if not always the best value for the money + it 's sort of loyalty by default + meanwhile the bottom end of the market is becoming less loyal says laurel cutler vice chairman of the ad agency <unk> katz partners + they 're buying whatever 's cheaper + the biggest wild card in the brand loyalty game how those <unk> pursued but highly <unk> baby boomers will <unk> as they move into middle age + they grew up with more brand choices than any generation and have shown less <unk> so far + but now that they 're settling down and raising families might they also show more stability in their brand choices + mr. kim of j. walter thompson does n't think so + he believes baby boomers will continue to be selective in their brand <unk> + earlier generations were brand loyal across categories he says but boomers tend to be brand loyal in categories like running shoes and bottled water but less so in others like toilet paper and appliances + while not as brand loyal as in the past consumers today do n't buy products <unk> either + rather they tend to have a set of two or three <unk> + sometimes they 'll choose <unk> <unk> <unk> other times it will be <unk> + advertisers attribute this shared loyalty to the striking similarity among brands + if a more <unk> <unk> hits the market you can be sure a new and improved <unk> wo n't be far behind + the <unk> worldwide ad agency studied brand parity and found that consumers believe all brands are about the same in a number of categories particularly credit cards paper <unk> dry <unk> and <unk> chips + when there 's a clutter of brands consumers <unk> the <unk> by telling themselves all brands are the same so what difference does it make which i buy says karen <unk> a senior vice president at <unk> + too often advertising <unk> has n't done a good job of <unk> a special emotional bond between a brand and the consumer + but given such strong brand <unk> some marketers are putting renewed emphasis on image advertising + a small but growing number of companies are also trying to <unk> more <unk> brand loyalty through such <unk> <unk> <unk> as <unk> magazines and membership clubs for brand users + while discount promotions are essential for most brands some companies concede they went <unk> in shifting money from advertising to coupons refunds and other sales incentives + some people argue that strong brands can afford to stop advertising for a time because of the <unk> impact of hundreds of millions of dollars spent on advertising through the years + but most companies are too afraid to take that chance + and perhaps with good reason + says <unk> <unk> president of the d'arcy <unk> ad agency 's u.s. division every time N hours pass without any advertising reinforcement brand loyalty will <unk> ever so slightly even for a powerful brand like <unk> + consider for example what happened to maxwell house coffee + the kraft general foods brand stopped advertising for about a year in N and gave up several market share points and its leadership position in the coffee business + but since returning to advertising maxwell house has regained the lost share and is running neck and neck with archrival <unk> + now philip morris kraft general foods ' parent company is committed to the coffee business and to increased advertising for maxwell house says dick mayer president of the general foods usa division + even though brand loyalty is rather strong for coffee we need advertising to maintain and strengthen it + campbell soup co. for one has concluded that it makes good sense to focus more on its most loyal customers than on people who buy competitive brands + the probability of converting a <unk> to your brand is about three in N says tony adams the company 's vice president for marketing research + the best odds are with your core franchise + our heavy users consume two to three cans of soup a week and we 'd like to increase that + so campbell is talking to its brand enthusiasts probing their psychological <unk> to its soup + in one consumer focus group a fan declared that campbell 's soup is like getting a <unk> from a friend + that helped persuade the company to introduce a new advertising <unk> a warm <unk> from campbell 's + insurers face the prospect of paying out billions of dollars for damages caused by this week 's california earthquake + getting a grip on the extent of the damages is proving a far more difficult task than what insurers faced after hurricane hugo <unk> through the caribbean and the carolinas last month + the earthquake 's toll including possible deep structural damage goes far beyond the more easily observed damage from a hurricane says george <unk> a vice president in aetna life & casualty insurance co. 's claims division + but investors are betting that the financial and psychological impact of the earthquake coming so soon after the hurricane will help stem more than two years of intense <unk> wars among business insurers + reflecting that logic <unk> stocks posted strong gains + aetna and other insurers are hiring engineers and architects to help them assess structural damage + most insurers already have <unk> their catastrophe teams to begin processing claims from their policyholders in northern california + since commercial air travel is interrupted aetna based in hartford conn. chartered three planes to fly claims adjusters into sacramento and then planned for them to drive to the bay area + about N adjusters were dispatched yesterday afternoon along with laptop computers cellular phones and blank checks + some adjusters already in other parts of california drove to the disaster area with recreational vehicles and mobile homes that could be used as <unk> <unk> centers + insurers will be advertising N numbers probably on the radio that policyholders can call to get assistance on how to submit claims + state farm mutual automobile insurance co. the largest home and auto insurer in california believes the losses from the earthquake could be somewhat less than the $ N million in damages it expects to pay out for claims resulting from hurricane hugo + state farm based in <unk> ind. is also the largest writer of <unk> earthquake insurance in california + earthquake insurance is sold as a separate policy or a specific endorsement rider on a <unk> 's policy in california because of the area 's <unk> to earthquakes + state farm said about N N of its policyholders in california have also purchased earthquake insurance + <unk> insurance co. a unit of sears roebuck & co. said about N N of its personal property policyholders about N N in the san <unk> area also have earthquake coverage + the association of california insurance companies estimated damage to residential property could total $ N million but only $ N million to $ N million is insured it said + officials from the american insurance association 's <unk> service division which <unk> the efforts of the claims adjusters in an area after a natural disaster will be flying to san francisco today + they expect to have a preliminary estimate of the damages in a day or two + roads and bridges in the bay area appear to have suffered some of the most costly damage + highways such as the section of interstate N that collapsed in oakland generally do n't have insurance coverage + industry officials say the bay bridge unlike some bridges has no earthquake coverage either so the cost of <unk> it probably would have to be paid out of state general operating funds + however the bridge which charges a $ N toll each way does have loss of income insurance to replace lost revenue if the operation of the bridge is interrupted for more than seven days + that coverage is provided by a syndicate of insurance companies including fireman 's fund corp. based in <unk> calif. and cigna corp. based in philadelphia + earthquake-related claims are n't expected to cause significant financial problems for the insurance industry as a whole + instead even with the liabilities of two natural disasters in recent weeks analysts said the total capital of the industry is likely to be higher at year end than it was at midyear + indeed the earthquake could contribute to a turnaround in the insurance cycle in a couple of ways + for example insurers may seek to limit their future exposure to catastrophes by increasing the amount of reinsurance they buy + such increased demand for reinsurance along with the losses the <unk> will bear from these two disasters are likely to spur increases in reinsurance prices that will later be translated into an overall price rise + reinsurance is protection taken out by the insurance firms themselves + we are saying this is the breaking point this is the event that will change the psychology of the marketplace said william <unk> an analyst with <unk> & co. a hartford firm that specializes in the insurance industry + his firm along with some others issued new buy recommendations on insurer stocks yesterday + among the insurance stocks big gainers included american international group up $ N to $ N general <unk> corp. up $ N to $ N aetna up $ N to $ N and marsh & mclennan inc. up $ N to $ N + still a few individual companies most likely smaller ones could be <unk> + i think there is a <unk> good chance someone is going to hit the <unk> on this said oppenheimer & co. analyst <unk> <unk> + he suspects some insurers who had purchased reinsurance to limit their exposure to catastrophes will discover that reinsurance was used up by hurricane hugo + british west german <unk> and other overseas insurers are bracing for big claims from the san francisco earthquake disaster + although it 's unclear how much exposure the london market will face u.k. traditionally have a large reinsurance exposure to u.s. catastrophe coverage + jack <unk> chairman of fireman 's fund said this disaster will test the catastrophe reinsurance market causing these rates to soar + the catastrophe losses sustained by insurers this year will probably be the worst on an inflation-adjusted basis since N when another earthquake sparked the great san francisco fire + <unk> <unk> an insurance consultant in new york estimates that the N san francisco destruction on an inflation-adjusted basis included insured losses of $ N billion + he is estimating this week 's disaster will generate insured losses of $ N billion to $ N billion following about $ N billion in costs to insurers from hurricane hugo + silicon graphics inc. 's first-quarter profit rose sharply to $ N million or N cents a share from $ N million or six cents a share a year ago + the maker of computer workstations said a surge of government orders contributed to the increase + revenue rose N N to $ N million from $ N million the year earlier + in national over-the-counter trading the company closed yesterday at $ N a share down N cents + hunter environmental services inc. said it reached a preliminary accord on the sale of its environmental consulting and services business for about $ N million and assumption of related debt + the buyer was n't identified + the company said it also is making progress in negotiating the buy-out of its design division by management + in addition hunter said it will use proceeds from a private placement of $ N million of preferred shares to purchase an interest in a start-up company to underwrite environmental <unk> insurance + hunter wants to concentrate its resources on the insurance business and on a project to store hazardous <unk> in salt <unk> + jaguar plc 's chairman said he hopes to reach a friendly pact with general motors corp. within a month that may involve the british luxury-car maker 's producing a cheaper executive model + sir john <unk> told reporters at london 's <unk> yesterday he would be disappointed if we could n't do the deal within a month + he said the <unk> would mean jaguar could develop cars down range in price from where we are by offering access to gm 's <unk> parts production + besides creating joint manufacturing ventures the accord is expected to give gm about a N N stake that eventually would rise to about N N + jaguar figures a friendly alliance with gm will fend off unwelcome advances from ford motor co + but ford jaguar 's biggest shareholder since lifting its stake to N N this week is pressing harder for talks with sir john + we 're getting to the point where we are going to have to meet with him one ford official said yesterday + ford probably will renew its request for such a meeting soon he added + sir john has <unk> ford 's advances since the u.s. auto giant launched a surprise bid for as much as N N of jaguar last month + ford has signaled it might acquire a majority interest later + i 'm not obligated to sit down and talk to anybody the jaguar chairman asserted yesterday + he did n't rule out negotiations with ford however + the fiercely proud but financially strapped british company prefers to remain independent and publicly held despite ford 's promise of access to cash and technological know-how + sir john noted that gm a longtime jaguar supplier agrees we should remain an independent company + he said jaguar started negotiating with gm and several other car makers over a year ago but the rest dropped by the <unk> ever since the share price went above # N $ N a share + jaguar shares stood at N pence before ford 's initial announcement but the subsequent takeover frenzy has driven them up + the stock traded late yesterday on london 's stock exchange at N pence up N pence + developing an <unk> range would mark a major departure for britain 's leading luxury-car maker + a typical british executive car is mass produced and smaller than a luxury car + it generally <unk> no more than # N $ N roughly # N less than the <unk> <unk> which are all known for their <unk> leather work + we have designs for such executive cars but have never been able to develop them sir john said + gm 's help would make it possible for jaguar to build a wider range of cars + an executive model would significantly boost jaguar 's yearly output of N cars + you are talking about a couple hundred thousand a year said bob barber an <unk> analyst at u.k. brokerage james capel & co + a pact with gm may emerge in as little as two weeks according to sources close to the talks + the deal would require approval by a majority of jaguar shareholders + we have to make it attractive enough that holders would accept it sir john said + that may be difficult the jaguar chairman acknowledged when you have somebody else breathing down your neck + ford probably would try to kill the proposal by <unk> support from u.s. takeover-stock speculators and holding out the <unk> of a larger bid later said stephen reitman european auto analyst at london brokers <unk> phillips & drew + ford ca n't make a <unk> bid for jaguar until u.k. government restrictions expire + the anti-takeover measure prevents any outside investor from buying more than N N of jaguar shares without permission until dec. N N + but with its N N stake ford can <unk> a special jaguar shareholders ' meeting and urge them to drop the restrictions <unk> + it 's a very valuable weapon in their <unk> which could enable ford to bid sooner for jaguar observed mr. barber of james capel + otherwise jaguar may have to <unk> the two u.s. auto giants each owning a N N stake for more than a year + it would be difficult to see how a car company can be owned by a collective sir john said + it has never been done before but there 's always a first + although two baby bells showed strong growth in access lines usage and <unk> business revenue one reported a modest gain in third-quarter net while the other posted a small drop + <unk> corp. 's earnings increased N N after strong revenue gains were offset somewhat by refunds and rate reductions imposed by regulators in its midwest territory + bellsouth corp. 's third-quarter earnings dropped N N as a result of debt refinancing the recent acquisition of a cellular and <unk> property and rate reductions in its southeast territory + bellsouth + at bellsouth based in atlanta customer access lines grew by N or N N during the 12-month period ended <unk> + for the third quarter total operating revenue grew N N to $ N billion from $ N billion + total operating expenses increased N N to $ N billion from $ N billion + overall access minutes of use increased N N and toll messages jumped N N + bellsouth chairman and chief executive officer john l. <unk> said three factors accounted for the drop in third-quarter earnings + the refinancing of $ N million in long-term debt reduced net income by $ N million or five cents a share but in the long run will save more than $ N million in interest costs + the company previously said that the recent acquisition of mobile communications corp. of america would <unk> N earnings by about N N + in addition earnings were reduced by rate reductions in florida kentucky alabama tennessee and louisiana + <unk> + at <unk> based in chicago customer access lines increased by N or N N and cellular mobile lines increased by N or N N for the 12-month period ended sept. N + for the third quarter revenue increased N N to $ N billion from $ N billion + operating expenses increased N N to $ N billion including one-time pretax charges of $ N million for labor contract signing bonuses + local service revenue increased N N and <unk> and <unk> business revenue jumped N N + but network access revenue dropped N N and toll revenue dropped N N + a reflects 2-for-1 stock split effective dec. N N + b reflects extraordinary loss of five cents a share for early debt retirement + c reflects extraordinary loss of five cents a share and extraordinary gain of N cents a share from cumulative effect of accounting change + the wall street journal american way of buying survey consists of two separate <unk> nationwide polls conducted for the journal by peter d. hart research associates and the roper organization + the two surveys which asked different questions were conducted using national random probability samples + the poll conducted by peter d. hart research associates interviewed N adults age N and older from june N to june N N + the poll conducted by the roper organization interviewed N adults age N and older from july N to july N N + responses were weighted on the basis of age and <unk> to conform with u.s. census data + for each poll the odds are N out of N that if <unk> had sought to survey every household in the u.s. using the same <unk> the findings would differ from these poll results by no more than N N percentage points in either direction + the margin of error for <unk> for example married women with children at home would be larger + in addition in any survey there is always the chance that other factors such as question <unk> could introduce errors into the findings + program traders were buying and selling at full steam monday the first trading session after the stock market 's 190.58-point plunge friday + they accounted for a hefty N N of new york stock exchange volume monday the fourth busiest session ever + on friday N N of volume was in computer-guided program trades + in august by contrast program trading averaged N N of daily big board turnover + program traders were publicly <unk> following the <unk> crash oct. N N and a number of brokerage firms pulled back from using this strategy for a while + but as the outcry faded by the spring of N they resumed + some observers thought that after friday 's sharp drop the firms would rein in their program traders to avoid <unk> more controversy + but the statistics released yesterday show the firms did nothing of the sort + one reason they said was that the official reports on the N crash <unk> program trading as a cause + stock-index arbitrage is the most controversial form of program trading because it <unk> market moves if not actually causing them + in it traders buy or sell stocks and offset those positions in stock-index futures contracts to profit from fleeting price discrepancies + under the exchange 's <unk> program trading also describes a number of other strategies that in the opinion of some traders do n't cause big swings in the market + the big board 's disclosure of program trading activity on these two days was unusual + though it <unk> such data daily its monthly reports on program trading usually come out about three weeks after each month ends + the september figures are due to be released this week + the big board declined to name the wall street firms involved in the activity friday and monday or the type of strategies used + but traders on the exchange floor who can <unk> the computer-guided trading activity on monitor screens said most of the top program-trading firms were active both days + through august the top five program trading firms in volume were morgan stanley & co. kidder peabody & co. merrill lynch & co. painewebber group inc. and salomon brothers inc + though brokerage officials defended their use of program trading one sign of what an issue it remains was that few executives would comment on the record + besides <unk> the <unk> for program trading contained in the brady commission report they said stock-index arbitrage was actually needed monday to restore the markets ' <unk> + on friday the stock-index futures market was <unk> from the stock market when the chicago mercantile exchange halted trading in standard & poor 's N futures contract a circuit breaker procedure instituted after the N crash and implemented for the first time + futures trading resumed a half-hour later but the session ended shortly thereafter leaving the stock market set up for more sell programs traders said + by monday morning they said stock-index arbitrage sell programs helped <unk> the link between stocks and futures + but stunning volatility was produced in the process + the dow jones industrial average plunged a <unk> N points in the first N minutes of trading monday as stock-index arbitrage sell programs kicked in + at about N a.m. edt the market abruptly turned upward on stock-index arbitrage buy programs + by day 's end the dow industrials had rebounded N points or nearly half of friday 's drop + frederick 's of hollywood inc. los angeles said its board voted a N N increase in the specialty <unk> operator 's semiannual dividend to five cents a common share + the dividend is payable dec. N to stock of record nov. N + valley national corp. reported a third-quarter net loss of $ N million or $ N a share and suspended its quarterly dividend because of potential losses on its arizona real estate holdings + the <unk> holding company for arizona 's largest bank said it added $ N million to its allowance for losses on loans and for real estate owned + the company earned $ N million or N cents a share a year earlier + for the nine months valley national posted a net loss of $ N million or $ N a share + it had profit of $ N million or $ N a share in the N period + valley national had been paying a quarterly dividend of N cents a share + the arizona real estate market continues to be depressed and there is still uncertainty as to when values will recover james p. simmons chairman said + the decision to increase the loan-loss reserve and suspend the dividend is both prudent and in the best long-term interest of the shareholders he said + valley national said it made the decision on the basis of an overall assessment of the marketplace and the condition of its loan portfolio and after reviewing it with federal regulators + the addition to reserves comes on top of a provision of $ N million that was announced in june + in july moody 's downgraded $ N million of the company 's debt saying the bank holding company had n't taken adequate write-offs against potential losses on real estate loans despite its second-quarter write-down + richard m. <unk> valley national 's executive vice president said then that the company believed the write-downs were adequate and did n't plan to increase its reserves again + bruce <unk> a banking analyst with <unk> & co. a denver brokerage firm said valley national is n't out of the woods yet + the key will be whether arizona real estate turns around or at least <unk> he said + they 've stepped up to the plate to take the write-downs but when markets head down a company is always exposed to further negative surprises mr. <unk> said + valley national closed yesterday at $ N a share down $ N in national over-the-counter trading + two years of <unk> down the drain + that 's the way a lot of brokers feel today on the second anniversary of the N stock-market crash + ever since that fearful black monday they 've been <unk> wooing wary individual investors trying to convince them that oct. N N was a <unk> and that the stock market really is a safe place for average americans to put their <unk> dollars + and until last friday it seemed those efforts were starting to pay off + some of those folks were coming back says leslie quick jr. chairman of discount brokers quick & <unk> group inc + we had heard from people who had n't been active for a long time + then came the <unk> 190-point plunge in the dow jones industrial average and a new wave of stock-market volatility + all of a sudden it was back to square one + it 's going to set things back for a period because it <unk> the concern of volatility says jeffrey b. lane president of shearson lehman hutton inc + i think it will shake confidence one more time and a lot of this business is based on client confidence + brokers around the country say the reaction from individual investors this week has been almost <unk> + customers and potential customers are suddenly complaining about the stock market in the exact way they did in post-crash N + the kinds of questions you had before have <unk> says raymond a. chip mason chairman of regional brokerage firm legg mason inc. baltimore + i can just tell the questions are right back where they were what 's going on ca n't anything be done about program trading does n't the exchange understand where is the sec on this + mr. mason says he 's convinced the public still wants to invest in common stocks even though they believe the deck is <unk> against them + but these wide swings scare them to death + all of this is bad news for the big brokerage firms such as shearson and merrill lynch & co. that have big retail or <unk> businesses + after expanding rapidly during the <unk> years up to the N crash retail brokerage operations these days are getting barely enough business to pay the overhead + true the amount of money investors are willing to <unk> to their brokers has been growing lately + but those dollars have been going into such safe products as money market funds which do n't generate much in the way of commissions for the brokerage firms + at discount brokerage charles schwab & co. such <unk> investments recently accounted for a record $ N billion of the firm 's $ N billion of client 's assets + the brokers ' hope has been that they could soon <unk> investors into shifting some of their <unk> into the stock market + and before last friday they were actually making modest progress + a slightly higher percentage of new york stock exchange volume has been attributed to retail investors in recent months compared with post-crash N according to securities industry association data + in N an average N N of big board volume was retail business with the monthly level never more than N N + the retail participation dropped to an average N N in N and <unk> to barely N N some months during the year + yet in N retail participation has been more than N N in every month and was N N in august the latest month for which figures are available + jeffrey <unk> the <unk> 's research director says that all of his group 's <unk> statistics could be <unk> by as much as five percentage points because corporate <unk> are sometimes <unk> included in big board data + but there did seem to be a retail activity pickup + but friday did n't help things says mr. <unk> + with the gyrations of recent days says hugo <unk> senior vice president at charles schwab many small investors are absolutely convinced that they should n't play in the stock market + joseph <unk> president of retail sales and marketing at painewebber group inc. still thinks that individual investors will eventually go back into the stock market + investors will develop <unk> <unk> and their confidence will return he says + friday 's plunge he is telling painewebber brokers was nothing more than a tremendous reaction to leveraged buy-out stocks + meanwhile painewebber remains among the leaders in efforts to simply persuade investors to keep giving wall street their money + it 's more of an important issue to keep control of those assets rather than push the investor to move into specific products such as equities mr. <unk> says + the equity decision will come when the client is ready and when there 's a <unk> of confidence + it could be a long wait say some industry observers + some investors will <unk> back in says richard ross a market research director for <unk> & <unk> in chicago + then there 'll be another swing + given enough of these this will drive everyone out except the most <unk> he adds + mr. ross who has been studying retail investors ' perception of risks in the brokerage industry said a market plunge like friday 's <unk> investors ' confidence in their ability to make any judgments on the market + the long-term outlook for the retail brokerage business is <unk> mr. ross declares + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + washington d.c. + $ N million of general obligation tax revenue anticipation notes series N due sept. N N + about $ N million were offered through shearson lehman hutton inc + shearson is offering the notes as N N N securities priced to yield N N + j.p. morgan securities inc. is offering the remaining $ N million of notes + the notes are rated <unk> by moody 's investors service inc + standard & poor 's corp. has them under review + federal national mortgage association + $ N million of remic mortgage securities being offered in N classes by bear stearns & co + the offering series N is backed by fannie mae N N securities + the offering used <unk> pricing + separately fannie mae issued $ N million of remic mortgage securities in N classes through first boston corp + the offering series N is backed by fannie mae N N securities + pricing details were n't available + the two offerings bring fannie mae 's N remic issuance to $ N billion and its total volume to $ N billion since the program began in april N + <unk> per <unk> <unk> <unk> <unk> italy + $ N million of N N depository receipts due nov. N N priced at N to yield N N less fees via bankers trust international ltd + fees N N + mitsubishi corp finance japanese parent + $ N million of N N N bonds due nov. N N priced at N N to yield N N annually less full fees via yamaichi international europe ltd + fees N N + indian oil corp india + $ N million of floating-rate notes due november N paying six-month london interbank offered rate plus N point and priced at par via credit suisse first boston ltd + guaranteed by india + fees N + notes offered at a fixed level of N + national <unk> bank plc u.k. + # N million of <unk> <unk> notes priced at par via <unk> lynch international ltd + initial interest rate set at N point over three-month libor + subsequent margins set by agreement between natwest and merrill + if no margin agreed there is a <unk> rate of libor plus N point in years one to N and libor plus N point thereafter + <unk> electric express railway co japan + $ N million of bonds due nov. N N with equity-purchase warrants indicating a N N coupon at par via yamaichi international europe ltd + each $ N bond carries one warrant exercisable from dec. N N through nov. N N to buy company shares at an expected premium of N N N to the closing share price when terms are fixed oct. N + <unk> co japan + N million swiss francs of privately placed convertible notes due march N N with an indicated N N coupon at par via bank <unk> ltd + put option on march N N at an indicated N to yield N N + callable on march N N at N also beginning sept. N N from N N and declining half a point <unk> to par + each N swiss franc note is convertible from nov. N N to march N N at an indicated N N premium over the closing share price oct. N when terms are scheduled to be fixed + n. nomura & co japan + N million swiss francs of privately placed convertible notes due march N N with an indicated N N coupon at par via bank <unk> <unk> + put option on march N N at an indicated N N to yield N N + each N swiss franc note is convertible from nov. N N to march N N at a N N premium over the closing share price oct. N when terms are scheduled to be fixed + <unk> n.v netherlands + N million dutch guilders of N N N bonds due nov. N N priced at N N to yield N N at issue price and N N less full fees via <unk> bank + fees N + continental airlines + a <unk> $ N million issue of secured equipment certificates priced through drexel burnham lambert inc + the size of the issue was decreased from an originally planned $ N million + in addition a planned two-part offering of $ N million in unsecured notes was n't offered + the first part consisting of $ N million of N N N secured equipment certificates due june N N was priced at N with a yield to maturity of N N + the second part consisting of $ N million of N N N secured equipment certificates due june N N was priced at N with a yield to maturity of N N + the third part consisting of $ N million of N N N secured equipment certificates due april N N was priced at N with a yield to maturity of N N + the fourth part consisting of $ N million of N N N secured equipment certificates due april N N was priced at N with a yield to maturity of N N + the issue was rated <unk> by moody 's and <unk> by s&p + all parts of the issue are callable at any time at par + continental airlines is a unit of texas air corp + john v. holmes an <unk> publisher and three venture-capital firms he organized were <unk> from violating the registration provisions of the securities laws governing investment companies + as part of an agreement that settled charges brought by the securities and exchange commission a receiver was also appointed for the three venture-capital firms + mr. holmes was the subject of a page one profile in the wall street journal in N after the sec questioned him about ties between him and companies he touted in a newsletter + in N in another consent agreement with the sec mr. holmes was <unk> from violating the <unk> and <unk> provisions of the securities laws + without any admission or <unk> of <unk> by mr. holmes that agreement settled sec charges that mr. holmes sold <unk> securities and <unk> investors + in charges filed last week in federal district court in charlotte n.c. the sec alleged that venture capitalists inc. venture finance corp. and new ventures fund inc. all of charlotte failed repeatedly to file proper documents + the sec also charged that mr. holmes acted as an officer or director of new ventures in violation of his previous consent agreement + some companies were <unk> in filings and other actions all of which cost money mr. holmes said + two of mr. holmes 's business associates who worked for venture capitalists <unk> ann smith and frederick <unk> also consented to being <unk> from violations of registration provisions of the securities laws + ms. smith also agreed to a permanent injunction barring her from acting as an officer director or investment adviser of any mutual fund unit investment trust or <unk> certificate company + mr. <unk> and ms. smith could n't be reached for comment + in <unk> to the <unk> none of the individuals or companies admitted or denied the allegations + senate republicans have settled on a proposal that would cut the capital-gains tax for individuals and corporations + at the same time a small group of senate democrats are working on a similar plan and may introduce it soon + sen. bob packwood r. ore. the lead sponsor of the gop proposal said he intends to unveil the plan today and to offer it as an amendment to whatever legislation comes along particularly this month 's bill to raise the federal borrowing limit + he gave <unk> odds that a capital-gains tax cut of some sort would be approved this year though it probably wo n't be included in the pending deficit-reduction bill + he added that he expects to talk to the democrats who also wanted to cut the gains tax about <unk> a joint proposal + for individuals the packwood plan would exclude from income N N of the gain from the sale of a capital asset held for more than one year + the exclusion would rise five percentage points for each year the asset was held until it reached a maximum of N N + the exclusion would apply to assets sold after oct. N N + as an alternative he said taxpayers could chose to reduce their gains by an inflation index + for corporations the top tax rate on the sale of assets held for more than three years would be cut to N N from the current top rate of N N + that rate would gradually decline to as little as N N for corporate assets held for N years + the packwood plan would also include a proposal designed by sen. william roth r. del. that would expand and alter the deduction for individual retirement accounts + the roth plan would create a new <unk> ira from which money could be withdrawn tax-free not only for retirement but also for the purchase of a first home and to pay education and medical expenses + current iras could be rolled over into the new iras but would be subject to tax + for their part the group of democrats are working on a plan that like the packwood proposal would grant larger <unk> to assets the longer they were held by individuals and companies + newly acquired assets would get a bigger break than those currently held + an extra exclusion would be given to <unk> stock in small and <unk> corporations just starting up + no one in the senate is considering the capital-gains plan passed by the house + that plan would provide a N N exclusion to assets sold over a N 1\/2-year period ending dec. N N + after then the house measure would boost the tax rate to N N and exclude from tax the gain attributable to inflation + senators are focusing on making a capital-gains <unk> permanent + separately chairman dan <unk> d. ill of the house ways and means committee said he did n't want the capital-gains tax cut or any other amendments attached to the pending bill raising the federal borrowing limit + the current debt limit expires oct. N + he also urged house and senate negotiators to rid the deficit-reduction bill of all provisions that increase the budget deficit including the house-passed capital-gains provision + from a helicopter a thousand feet above oakland after the <unk> earthquake in u.s. history a scene of devastation emerges a freeway <unk> into a concrete <unk> <unk> pumping water into <unk> apartments abandoned autos + but this quake was n't the big one the <unk> of N that has been feared for so many years + despite the <unk> loss of more than N lives and damage estimated in the billions most businesses and their plants and offices in the bay area were n't greatly affected + the economic life of the region is expected to revive in a day or two although some transportation problems may last weeks or months + a main factor <unk> more widespread damage was the location of the quake 's epicenter N miles from the heart of the silicon valley and more than N miles from downtown san francisco and oakland + also the region 's insistence on strict building codes helped prevent wider damage + the tremendous energy of the quake was <unk> by the distance so that most parts of the valley and the major cities suffered largely cosmetic damage broken windows falling brick and <unk> <unk> <unk> or <unk> + of course the quake was the worst since the emergence of the computer era turned silicon valley into the nation 's capital of high technology + like other major american cities the san francisco oakland area owes its current prosperity more to its infrastructure of <unk> <unk> linking thousands of computer terminals and telephones than to its location <unk> one of the world 's great natural harbors + when the tremors struck the region 's largely <unk> high-tech fabric held up surprisingly well despite the devastation visible from the air + michael l. <unk> vice president for network technology at pacific bell telephone co. says nearly all the network 's computer switches which move thousands of calls a minute from one location to another changed to battery power when the city lost power + the battery <unk> have enough power for only three hours but that gave emergency crews time to turn on an emergency system that runs primarily on diesel fuel + of some N switches in pacific bell 's network only four went down + one of those was in <unk> calif. near the earthquake 's epicenter + few telephone lines snapped + that 's because the widely used <unk> cable has been installed underground with N extra feet of cable between <unk> points + the slack <unk> the pulling strain generated by an earthquake + nevertheless phone service was sporadic many computer terminals remained dark and by late yesterday a third of san francisco remained without power + business in the nation 's <unk> metropolitan region was nearly <unk> an estimated one million members of the work force stayed at home + the economic <unk> was as abrupt as the earthquake itself as virtually all businesses shut down + the $ <unk> bay area economy represents <unk> of the economy of the nation 's most <unk> state and accounts for N N to N N of the nation 's total output of goods and services according to the center for continuing study of the california economy in palo alto + in high-tech the bay area accounts for N N to N N of the u.s. <unk> industry + this has been a major disruption for the bay area economy says <unk> <unk> the chief economist at the california department of finance + obviously things are going to have to go on hold for many companies + the damage to the bay area 's roadways could cause significant economic <unk> + a quarter of a million people cross the bay bridge every day far more than the N that use the bay area rapid transit system bart which was working but was n't <unk> in the city 's financial district yesterday afternoon because electricity was shut off and the area was being <unk> for gas leaks + california state transportation officials interviewed by telephone say they nevertheless do n't expect serious problems for commerce in and out of the bay area + all major roadways except interstate N known as the nimitz freeway and the bay bridge were open by N p.m. yesterday + officials expect difficulty <unk> traffic through downtown san francisco + the earthquake caused many streets to buckle and crack making them <unk> + other roads were <unk> by collapsed buildings and damaged water and power lines an emergency relief spokesman says + san francisco mayor art agnos estimated the damage to his city alone at $ N billion + but many predicted that the commercial disruption would be short-lived + of the scores of companies contacted by this newspaper few reported any damage that they did n't expect to have <unk> within a day or two + it is possible of course that some of the most seriously damaged companies could n't be reached particularly in areas <unk> the epicenter + typical perhaps was the situation at new united motor manufacturing inc. the general motors <unk> joint-venture auto plant in <unk> about N miles south of oakland + ten of the plant 's workers were injured when the quake hit about a half-hour into the afternoon shift seven were <unk> + metal <unk> on the plant floor fell over and water <unk> <unk> a spokeswoman says + the plant was <unk> and workers sent home + but the plant was able to resume limited production of its toyota <unk> and <unk> <unk> by N a.m. yesterday and <unk> was only N N of the work force about twice normal + computer maker hewlett-packard co. based in palo alto says one of its buildings sustained severe damage when it was knocked off its foundation + other buildings had broken glass <unk> light <unk> and broken pipes a <unk> says estimating the cost of <unk> in the millions + most banks were closed but were expected to reopen today with few problems anticipated + at the federal reserve bank of san francisco vice president robert <unk> says operations were <unk> along as usual yesterday afternoon + when the quake hit we turned on our emergency <unk> and brought our computers up he says + the fed serves as a <unk> for banks taking checks from one bank and sending them to another an operation that it handled smoothly tuesday night after the quake + the volume we received from the banks was a lot lower than usual he says + a <unk> plan in which the los angeles fed would come to san francisco 's aid was n't needed he adds + most of the telephone problems in the immediate aftermath stemmed from <unk> + the telephone network simply could n't handle the large number of people seeking to make a call at the same time + the volume resulted in <unk> delays that were as short as N seconds and as long as five minutes + mr. <unk> puts traffic volume at N to N times normal + american telephone & telegraph co. mci communications inc. and united telecommunications ' u s <unk> unit were blocking phone calls into the bay area to alleviate <unk> + the companies block traffic much as highway <unk> are blocked when traffic backs up + william e. <unk> pacific bell 's vice president of customer services for the bay area says most long-distance companies were blocking about N N of all calls + pacific telesis says its pacific bell unit also was blocking about N N of its calls locally + ironically the long-term effect of the earthquake may be to bolster the bay area 's economic fortunes and indeed the nation 's gross national product + it may also lead to new <unk> in major construction projects such as <unk> highways + it would in the near-term give a boost to the san francisco economy because there will be an influx of people to help says beth burnham <unk> a regional economist at <unk> hill a lexington mass. forecasting firm + the construction industry is sure to feel increased demand + there will be a big influx of federal dollars and gains in state federal and local employment ms. <unk> says + adds <unk> <unk> an economist at georgia state university there 's nothing positive about an earthquake but it will probably generate more construction activity + wall street reacted swiftly yesterday to the disaster by bidding up stocks of construction and related companies + shares of lone star industries inc. a cement maker rose sharply in anticipation of <unk> demand + in greenwich conn. lone star spokesman michael london says obviously with an earthquake of this size there are likely to be construction projects that would n't otherwise have been anticipated + but any increase is n't likely to be any kind of a surge + it 's something likely to be spread out over a long period of time + there will be a lot of repair work that wo n't require the quantities of cement or concrete that new <unk> would + lone star 's san francisco facilities were n't damaged in the quake + the earthquake is likely to reduce gnp <unk> in the near term and then could raise it a bit as rebuilding begins + the first effects are of course negative as work is disrupted and people lose income and cut spending + corporate profits may also dip initially + many of the lost tourism dollars wo n't be recovered many trips delayed never take place + subsequently however the ill effects are likely to be offset at least in economic terms as construction activity begins + because of the way the government keeps its books the damage to the bay bridge however costly wo n't be counted as a minus + the money spent on repairs will be counted as a plus + it 's very difficult to model the long-term impact of this says andrew goldberg who studies the <unk> and <unk> aspects of earthquakes at the center for strategic international studies in washington <unk> + you certainly can say it 's going to be extremely severe + we really are talking about <unk> down a major american city for a number of days maybe for a few weeks + mr. goldberg says the cost of the earthquake will definitely top $ N billion and could reach $ N billion + he <unk> that early damage estimates are often low the damage totals in hurricane hugo increased tenfold as more information was received + the earthquake damage of course would have been far greater if the epicenter had been in downtown san francisco + a direct hit on a major city mr. goldberg figures would cause $ N billion to $ N billion of damage + experts caution that it is far too soon for <unk> estimates of the quake 's total damage but it 's clear that insurers are likely to pay out enormous sums + jack <unk> the chairman of fireman 's fund corp. which is based in <unk> calif. estimates insured losses resulting the earthquake could total $ N billion + the impact on the insurance industry will be big and harsh but less than hurricane hugo says mr. <unk> who <unk> the bay area by car yesterday afternoon to get a sense of the company 's exposure to the earthquake + mr. <unk> says fireman 's fund will probably pay hundreds of millions in primary claims but after taxes and use of its reinsurance lines the company 's <unk> charge against earnings should n't top $ N million + the company was able to assess its damage liability quickly because it has computerized <unk> of northern california showing the exact locations of all the property it <unk> + fireman 's fund had claims adjusters on the streets of san francisco right after <unk> yesterday and was paying as many claims as it could right on the spot + fireman 's fund <unk> N homes and autos and N businesses in the bay area + in addition to paying for earthquake and fire damage the insurer must cover <unk> claims and also losses due to businesses being shut down by lack of power or phone service + but many californians may not have adequate insurance coverage to pay for damages to their property + the independent insurance agents of america says fewer than one of every five california homeowners has earthquake insurance + a somewhat higher percentage of people living in the bay area have bought the additional insurance protection but the great majority are n't covered + earthquake insurance typically runs $ N or more a year for a small house + whatever the long-term economic effect the scene from the helicopter above oakland is one of tragedy + <unk> sections of a <unk> freeway have been <unk> about like plastic building blocks + <unk> them sit cars and trucks abandoned in a <unk> scramble to safety the day before + in areas where the freeway made giant concrete <unk> of itself lie cars that police say have been <unk> into <unk> <unk> + on the <unk> rescue workers seem from the air to move in slow motion + they peck away at the N <unk> section of rubble searching for more of the N people thought to have died here + about N other deaths were also attributed to the earthquake + the heart of the earthquake N on the richter scale was N miles to the south near santa cruz but its terrible <unk> struck here on the nimitz freeway a major artery serving the bay bridge between oakland and san francisco + along the way the quake <unk> a mall in santa cruz knocked down buildings in san francisco 's fashionable marina district and sent a wall of bricks <unk> on <unk> in the city 's financial district + just a short span across the bay to the west the quake also showed its <unk> a <unk> area of the marina district lies <unk> under a steady stream of <unk> being pumped onto rubble to prevent it from <unk> <unk> + many of the buildings mostly <unk> and apartments were <unk> almost instantly as the underlying soil much of it landfill was literally turned to <unk> by the quake 's intensive shaking <unk> gas lines + <unk> say three persons died when one of the buildings exploded into a <unk> shortly after the quake struck + efforts to fight the <unk> were hampered because water <unk> were <unk> as well + from the air <unk> of yellow fire <unk> carry water from the bay to <unk> <unk> trained on the site + as <unk> stand behind <unk> <unk> <unk> and building inspectors survey rows of nearby buildings that were <unk> from their foundations and seem on the verge of collapse + in the marina district residents spent yesterday assessing damage cleaning up and trying to find friends and neighbors + <unk> <unk> N years old has lived in the district most of her life + her parents lost everything in the N earthquake + now we realize what our mothers must have gone through she says + we always heard about the earthquake but as children we did n't always listen + prince <unk> is the crown prince and <unk> grand duke of <unk> + an article in the world business report of sept. N editions incorrectly referred to his father grand duke jean as the crown prince + resolution funding corp. plans to sell $ N billion of 30-year bonds wednesday in the agency 's first sale of securities + the new bonds will be dated oct. N and mature oct. N N + tenders for the bonds available in minimum denominations of $ N must be received by N p.m. edt wednesday at federal reserve banks + refcorp created by the <unk> law enacted in august will use the proceeds to merge or sell off ailing savings-and-loan institutions + congress authorized $ N billion to be borrowed to pay for the thrift bailout + of that amount $ N billion has already been borrowed by the treasury department + unless otherwise specified in a particular offer the bonds wo n't be subject to redemption prior to maturity + interest payments on the bonds will be payable <unk> + the bonds are subject to federal taxation in the u.s. including income taxes + at the state and local level the bonds are subject to <unk> and estate <unk> and gift taxes but exempt from taxation as to principal and interest + <unk> searle & co. a monsanto co. unit is launching a program to give consumers more information about its drugs when doctors <unk> them + called patients in the know the program features fact sheets designed to be easy to understand + the sheets tell how the medicine works describe how to use it and list its possible side effects + they are designed to be given to patients by their doctors when the <unk> are prescribed and include space for the doctor to write special instructions + in addition searle will give <unk> <unk> on the use of prescription drugs for distribution in their stores + consumer groups have long <unk> that drug companies and doctors make more information available to patients + we believe that every drug that 's marketed to a consumer should have a consumer label said douglas <unk> of the public citizen health research group a ralph <unk> affiliate + dr. <unk> said searle is the only company i know that voluntarily will make consumer information available + according to federal officials and <unk> studies nearly half of the N billion <unk> filled each year are n't used properly meaning that money is wasted on some <unk> and patients are deprived of the benefits of medication + we think it 's very important to provide as much information as possible on the drugs consumers take said searle chairman <unk> <unk> + bond prices <unk> yesterday as investors kept close watch on the stock market and worried about a wave of new supply + early yesterday bonds rose as investors rushed to buy treasury securities on the prospect that stocks would plummet in the aftermath of the massive california earthquake + for example some securities analysts warned that stocks of certain insurance companies which face massive damage claims would get hit hard + but when the dow jones industrial average rose instead bonds drifted lower + with stocks not a major focus we 're waiting for the next <unk> light said brian j. <unk> chief economist at midland <unk> securities inc + if the stock market tremors are behind us then the bond market will go back to looking at the next batch of economic numbers to determine where interest rates are heading + the treasury 's benchmark 30-year bond which jumped N point or about $ N for each $ N face amount during the first hour of trading ended little changed + interest rates barely <unk> from tuesday 's levels + most junk bonds which have been battered in recent weeks continued a slow <unk> and ended unchanged to slightly higher + but some so-called high-quality junk issues fell as some mutual funds sold their most liquid issues to raise cash + rjr holdings capital corp. 's N N bonds due N fell one point + other rjr issues fell between N point and N N point + in the latest sign of how difficult it is to place certain junk bonds continental airlines said it was forced to scale back the size of its latest offering + continental a unit of texas air corp. slashed the size of its note offering from $ N million to $ N million + the move had been widely expected + in the <unk> offering the company sold a portion of secured notes but <unk> all the unsecured notes + a continental spokeswoman said the notes may be offered at a later date + this was not a <unk> deal she said + i think this is a market that required some level of security + it did not make sense to offer unsecured paper in an <unk> market + investors have been <unk> for weeks about the market 's ability to place the $ N billion to $ N billion of new junk bonds scheduled to be sold by year end + supply troubles were also on the minds of treasury investors yesterday who worried about the flood of new government securities coming next week + we 're being <unk> by new treasury and agency debt offerings said william sullivan jr. director of money-market research at dean witter reynolds inc + the market is concerned about its ability to underwrite all this debt at current levels + in addition to the $ N billion of treasury bills to be sold at next week 's regular monday auction the government will sell $ N billion of new two-year treasury notes + and resolution funding corp. said late yesterday that it will sell $ N billion of 30-year bonds wednesday + refcorp is the financing unit of resolution trust corp. a new government agency created to rescue the nation 's troubled thrifts + its securities have been dubbed bailout bonds by traders + in when-issued trading the two-year treasurys had a yield of about N N + in the municipal market all eyes were on california debt as investors tried to gauge the financial <unk> of tuesday 's earthquake + but traders said the quake had only a minor impact on the trading of california state and local municipal debt + there are certain bonds traders refer to as earthquake bonds because the issuers are on top of the san andreas fault said <unk> <unk> editor of the california municipal bond <unk> a newsletter for investors + since those bonds already pay a slightly higher yield an extra premium for the earthquake risk they were n't <unk> affected + but some bond market analysts said that could quickly change if property casualty insurance companies scramble to sell portions of their municipal portfolios to raise cash to pay damage claims + insurance companies will foot a substantial amount of the bill to <unk> san francisco said charles <unk> chief economist at manufacturers hanover securities corp + he also expects the performance of municipals to lag treasurys as california is forced to issue new debt over time to repair public facilities + a report issued late yesterday by standard & poor 's corp. concluded the quake wo n't cause <unk> credit deterioration for issuers and debt issues in the <unk> area of northern california affected by the quake + treasury securities + treasury bonds ended narrowly mixed in quiet trading + the benchmark 30-year bond ended at a price of N N to yield N N compared with N N to yield N N tuesday + the latest 10-year notes were quoted late at a price of N N to yield N N compared with N N to yield N N + short-term rates were little changed + corporate issues + investment-grade corporate bonds ended N point lower + the continental junk bond offering underwritten by drexel burnham lambert inc. was the only new issue priced yesterday + in the <unk> offering the $ N million of secured equipment certificates was priced to yield N N to N N + municipals + municipal bonds ended about N to N point lower hurt by the circulation of two <unk> lists totaling $ N million + chemical securities inc. is acting as agent for the seller + meanwhile some california issues were down a touch more than the broad market but traders said there had n't been much investor selling because of the quake + but new york city general obligation bonds came under selling pressure + traders said a steady stream of bonds was put up for sale yesterday pushing yields for longer maturities up N percentage point + traders said investors were reacting to recent negative news on the city 's finances and are nervous ahead of the nov. N election + washington d.c. topped the competitive slate yesterday with a sale of $ N million of general obligation tax revenue anticipation notes + in late trading new jersey turnpike authority 's N N issue of N was off N point at N bid + the yield was N N up N percentage point + mortgage-backed securities + mortgage securities ended little changed after light dealings + there was no <unk> market impact from the california earthquake + dealers said there was some concern that insurance companies might be forced to sell mortgage securities to help pay earthquake-related claims but no selling materialized + the federal home loan mortgage corp. and federal national mortgage association two dominant issuers of mortgage securities have a sizable amount of california home loans in their <unk> pools + but their potential quake exposure is seen as small given that they require a financial cushion on all the loans they purchase + and because northern california home prices are so high loans from the region often are too large to be included in freddie mac and fannie mae pools + meanwhile government national mortgage association N N securities for november delivery ended at N N unchanged + freddie mac N N securities were at N N down N + in derivative markets fannie mae issued two $ N million real estate mortgage investment <unk> backed by its N N securities + foreign bonds + british government bonds or <unk> ended moderately lower as equities there recovered from tuesday 's drop + the treasury 's N N N bond due N fell N to N N to yield N N while the N N notes due N were down N to N N to yield N N + traders said today may be an anxious day for the market + several key economic figures are due out and chancellor of the exchequer nigel lawson is scheduled to give the annual mansion house address to the financial community + the chancellor sometimes has used the occasion to announce major economic policy changes + economists do n't expect any such changes in this year 's address given mr. lawson 's apparent reluctance to adjust policy currently + meanwhile japanese government bonds retreated in quiet trading <unk> by the dollar 's <unk> + japan 's bellwether N N bond due N ended on brokers ' screens at N to yield N N + in west germany investors stayed on the sidelines as the bond market searched for direction + the government 's N N issue due october N fell N point to N to yield N N + the berlin wall still stands + but the man who built it has fallen + east germany yesterday removed erich honecker one of the <unk> <unk> against the reform <unk> through the communist world in an effort to win back the confidence of its increasingly <unk> citizens + but while it was a move that stunned the east bloc it hardly <unk> in an era of reform at least anytime soon + for the politburo replaced mr. honecker who had led east germany for N years and before that headed its security <unk> with a man cut of the same <unk> egon krenz the most recent <unk> chief and a longtime honecker <unk> + east germany it is clear is no poland where the communist party now shares power with the <unk> elected solidarity union + nor is it a hungary where yesterday the parliament approved constitutional changes meant to help turn the communist nation into a <unk> democracy + still any change in east germany has enormous implications for both east and west + it raises the <unk> hopes of many germans for reunification a prospect that almost equally <unk> political leaders in moscow washington and western europe + mr. krenz N was named the new party chief just minutes after the party 's <unk> central committee <unk> in east berlin + although the east german news agency <unk> claimed mr. honecker had asked to be relieved of his duties for health reasons west german government sources said the <unk> politburo had asked for his resignation at a separate meeting late tuesday + mr. honecker was twice <unk> this summer for a <unk> <unk> <unk> and his physical condition has been the subject of intense speculation in the western media + <unk> said mr. honecker a hard-line <unk> who in N <unk> the construction of the berlin wall also was relieved of his title as head of state and his position as chief of the military + mr. krenz is expected to be formally named to all three positions once the nation 's parliament <unk> later this week + mr. honecker 's <unk> fall <unk> nearly two decades of <unk> leadership during which mr. honecker now N years old built east germany into the most economically advanced nation in the soviet bloc + his grip on power unraveled this summer as thousands of his <unk> <unk> by the <unk> of his rule fled to the west + thousands more have taken to the streets in the last month in east germany 's largest wave of domestic unrest since a workers ' <unk> in N + in washington the bush administration took a <unk> cautious and skeptical view of the leadership change + the official line was to offer <unk> ties to mr. krenz provided he is willing to institute reforms + but u.s. officials have strong doubts that he is a <unk> + president bush told reporters whether that the leadership change reflects a change in <unk> relations i do n't think so + because mr. krenz has been very much in accord with the policies of honecker + one top u.s. expert on east germany added there is no <unk> champion of reform that we know of in the east german leadership + indeed mr. krenz said on east german television last night that there will be no sharing of power with pro-democracy groups + he said while dialogue is important enough <unk> already exist in which different interests can express themselves + the removal of mr. honecker was apparently the result of bitter <unk> within the top ranks of the communist party + according to west german government sources mr. honecker and several senior politburo members fought over the last week to delay any decisions about a leadership change + but with public demonstrations in the country growing in size and intensity mr. honecker and several key allies lost out in this battle officials say + those allies included politburo members <unk> <unk> who has long headed economic affairs and <unk> <unk> chief of information policy + both men were also relieved of their duties yesterday + although other resignations may follow it 's still not clear to what extent the change in party personnel will alter the government 's resistance to fundamental change + clearly the central figure in this process is egon krenz + born in N in a <unk> sea town now part of poland he was eight years old when world war ii ended + like west german chancellor helmut kohl he represents the postwar generation that has grown up during germany 's division + since joining the politburo in N as its youngest member mr. krenz had acquired the <unk> crown prince a reference to the widely held view that he was the <unk> successor to mr. honecker + in fact the two men have had <unk> similar career <unk> both having served as chief of internal security before their rise to the top party position + moreover both men have <unk> to a similar hard-line philosophy + notably one of mr. krenz 's few official visits overseas came a few months ago when he visited china after the massacre in beijing + he later defended the chinese government 's response during a separate visit to west germany + east german <unk> in particular fears mr. krenz in part because of an incident in january N when he was believed to have ordered the arrest of hundreds of <unk> who had sought refuge in the church + however mr. krenz also has a reputation for being politically <unk> + his <unk> ability to read the shifting popular mood in east germany is best illustrated by his apparent break with his old <unk> mr. honecker + indeed according to west german government sources he was one of the leaders in the power struggle that <unk> mr. honecker + in recent days mr. krenz has sought to project a <unk> image + according to a report widely circulating in east berlin it was mr. krenz who ordered police to stop using excessive force against demonstrators in leipzig + he does n't want to have the image of the gun man says fred <unk> an expert at the <unk> institute of east european and international studies in <unk> + he 's not a <unk> he wants to have the image of a <unk> + as part of his image <unk> mr. krenz is expected to take modest steps toward reform to rebuild confidence among the people and <unk> the party 's authority + besides <unk> other senior politburo officials who allied themselves with mr. honecker mr. krenz could loosen controls on the news media free up travel restrictions and establish a dialogue with various dissident groups + but will it be enough + west german government officials and western analysts are doubtful + he does n't <unk> what people want so the unrest will go on mr. <unk> predicts + at the same time the expectations of the east german people are great and will continue to grow + says one west german official what 's necessary now is the process of <unk> + not just that people are being heard but that their interests are being taken seriously + chancellor kohl meanwhile has invited mr. krenz to open discussions with bonn on a wide range of subjects + reports in the west german press citing sources in east germany suggest mr. krenz may serve only as a bridge between mr. honecker and a genuine reform leader + adding to that speculation is mr. krenz 's reputation as a heavy <unk> who is said to also suffer from <unk> + this is a dynamic process and we 're experiencing the first step the bonn official adds + the selection of mr. krenz may also <unk> moscow + soviet leader mikhail gorbachev has pressed hard for a change in east germany 's rigid stance + two <unk> party leaders favored by moscow as possible <unk> to mr. honecker <unk> party secretary <unk> <unk> and politburo member <unk> <unk> were passed over + if mr. krenz <unk> to rigid policies the pressure from the soviet union could intensify + in moscow mr. gorbachev sent mr. krenz a <unk> <unk> that appeared to urge the new leadership to <unk> growing calls for change + according to the soviet news agency tass gorbachev expressed the conviction that the leadership of the socialist unity party of east germany being sensitive to the demands of the time will find solutions to complicated problems the <unk> german democratic republic encountered + a force of younger <unk> members in the east german bureaucracy has for some time been pushing for <unk> within their country + the older generation has been torn between a fear of <unk> with the status <unk> and a fear of what might happen if they did n't + from the perspective of east germany 's old guard reforms that <unk> of capitalism and western-style democracy could eliminate their country 's reason for being + unlike the other nations of the bloc east germany is a <unk> of the cold war + <unk> the differences still <unk> europe and the vast international <unk> that implies wo n't endanger the <unk> of a poland or a hungary + but it could ultimately lead to german reunification and the disappearance of east germany from the <unk> + which is what the old guard fears + i 'm sure they 'll <unk> a reform that will be a <unk> for the <unk> 's future as a separately <unk> state says michael simmons a british journalist whose book on east germany entitled the <unk> country was published this month + up to now that <unk> has <unk> of a dogged effort by former leader walter <unk> to establish the country 's international legitimacy followed by mr. honecker 's campaign to build the east bloc 's only successful <unk> economy into a consumer <unk> + neither man achieved <unk> + early in N mr. honecker and his team stopped paying thin <unk> to mr. gorbachev and joined with <unk> in rejecting any necessity for adjustments in their systems + the <unk> <unk> and <unk> in contrast declared their intentions to reform while doing nothing concrete about it + the east german media soon began <unk> mr. gorbachev 's <unk> only as <unk> <unk> and giving space to his opponents + by late N they were banning soviet publications + the country abandoned its former <unk> to socialist unity and took to insisting instead that each country in the bloc ought to travel its own road + mr. honecker spoke of generally valid objective laws of socialism and left no room for debate + with this year 's <unk> in china and the soviet union and the drive to democracy in poland and hungary the east german leadership grew still more defensive + politburo member <unk> <unk> confessed to a grave concern over <unk> democracy + under the <unk> that <unk> the renewal of socialism he said forces are at work that are <unk> to eliminate socialism + some loyal voices in and out of the east german communist party saw the nation 's unrest coming + the first signs were economic + despite heavily subsidized consumer industries east germans have for years watched the west pull <unk> out ahead + in N for the first time economic growth came to a dead stop + <unk> some economists began to blame central planning + some writers in theoretical <unk> even raised the notion of introducing democracy at least in the workplace + by summer an independent reform movement was saying out loud what it had only <unk> before + but they are <unk> <unk> + their proclaimed purpose is to <unk> east germany of its <unk> <unk> not to merge with the west + one of their <unk> has <unk> a new <unk> of creative socialism + meanwhile the man mr. krenz <unk> has left an <unk> mark on east german society + <unk> by the <unk> during world war ii for his political <unk> mr. honecker <unk> the postwar generation of committed communist leaders in eastern europe who took their <unk> from moscow + he was a socialist <unk> who felt <unk> by west germany 's enormous postwar prosperity and the bonn government 's <unk> refusal to recognize the legitimacy of his state + finally during his first and only state visit to bonn two years ago he won some measure of the recognition he had long sought + but ultimately he was <unk> by forces <unk> by his own <unk> mr. gorbachev + mr. honecker 's removal was bound to happen says one aide to chancellor kohl + it was only a matter of time + the european community commission increased its forecast for economic growth in the ec in N to N N slightly higher than its june projection of N N + in its annual economic report for N the commission also projected N gross domestic product growth for the N ec members at N N + ec inflation was seen at N N in N higher than N 's N N price rise + however inflation for N was seen slowing to N N + leading ec growth forecasts in N was ireland seen growing N N at constant prices + slower growth countries included greece at N N the u.k. at N N and <unk> at N N + inflation is expected to be highest in greece where it is projected at N N and portugal at N N + at the other end of the spectrum west german inflation was forecast at N N in N and N N in N + nestle korea ltd. opened a coffee and <unk> plant in <unk> south korea + an official at nestle korea a N joint venture between nestle s.a. and the <unk> group said the new facility will manufacture all types of <unk> <unk> and ground coffee coffee mix and <unk> coffee <unk> + the south korean coffee market consisting mostly of instant coffee was estimated at about N billion won $ N million last year + brands made by the kraft general foods unit of philip morris cos. had about N N of the market share + nestle currently has only about a N N share with its <unk> 's choice coffee + poland plans to start negotiations soon on purchasing natural gas from iran the official <unk> republic news agency reported + the agency said polish prime minister <unk> <unk> told iranian deputy foreign minister <unk> <unk> of poland 's <unk> to purchase the gas during mr. <unk> 's current visit to warsaw + the agency did n't mention possible quantities and did n't say how the gas would be delivered + a chinese official <unk> criticized plans to close a british naval base in downtown hong kong + hong kong officials announced last week that the base will be <unk> to a small island to allow downtown redevelopment + but beijing wants to use the base for the people 's liberation army after N when the territory returns to chinese sovereignty + <unk> <unk> head of china 's delegation to a <unk> <unk> committee on hong kong accused britain of trying to impose a <unk> <unk> and said this is something we can not accept + the israeli and soviet national airlines have reached preliminary agreement for launching the first direct flights between <unk> <unk> and moscow a spokesman for the israeli airline el al said + el al director <unk> <unk> and top officials of the soviet union 's aeroflot negotiated a preliminary pact in moscow this week the spokesman said + he added that concluding the deal requires approval by the governments of both countries which have never had direct air links + the chairman and a director of one of the republic of singapore 's leading property companies city development ltd. or <unk> were charged yesterday with criminal breach of trust of some N singapore dollars about us$ N + <unk> hong <unk> chairman of <unk> and director <unk> <unk> <unk> were arrested by the republic 's corrupt practices investigation bureau tuesday night + in addition to <unk> in the alleged criminal breach of trust <unk> hong <unk> was also charged with <unk> receiving <unk> N that had been stolen + both men were charged in a subordinate court and released on bail of <unk> N million + the charges are the culmination of weeks of rumors concerning <unk> that have depressed the company 's share price and to a lesser extent the shares of all companies owned by <unk> 's controlling <unk> family brokers in singapore say + the <unk> control the hong <unk> group which has widespread interests in manufacturing property and finance in both malaysia and singapore + news of the arrest and charging of the two men helped to push prices on the singapore stock market sharply lower in early trading yesterday but brokers said that the market and <unk> shares recovered once it became apparent the charges were limited to the two men personally + one of the two british companies still making hard toilet paper stopped production of it + british <unk> decided to do away with its hard paper after a major customer british rail switched to softer <unk> for train <unk> + peasants in inner <unk> have partly <unk> a <unk> section of china 's <unk> great wall the official people 's daily said + the paper said the bricks were used to build homes and <unk> and as a result the wall is in terrible shape + wednesday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac + posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae + posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + a grand jury here indicted norton co. 's former director of <unk> research charging him with interstate transportation of stolen property + norton and general electric co. last month filed a lawsuit against the former research manager <unk> sung charging him with stealing trade secrets + mr. sung formerly worked at general electric in research on synthetic diamonds + the criminal charges brought against him involved ge technology according the court documents + if convicted he could be <unk> for up to N years and fined $ N + mr. sung could n't be reached for comment + he earlier denied the allegations against him in the lawsuit by norton and ge + norton makes <unk> and other <unk> diamond tools specialty plastics and <unk> + as the citizens of san francisco and surrounding communities began assessing the damage from tuesday 's devastating earthquake nbc news began assessing the damage from what some said was a failure to provide comprehensive coverage in the earthquake 's initial moments + in terms of coverage it was a disaster equal to the earthquakes said eric <unk> president for broadcasting of king broadcasting co. which owns the nbc affiliate in seattle wash + while rival abc news <unk> the competition in live coverage of the event by sheer luck the network was broadcasting the world series from candlestick park when the quake struck nbc news was unable to get its signal out of san francisco for the first hour after the quake + i have to attribute the lackluster performance to a natural disaster said mr. <unk> + so before i start to be really critical of nbc i would like to know more about what happened + there were no complaints from affiliates of cbs inc. and cable news network a unit of turner broadcasting system inc + but that was not the case at nbc news which has been dogged with the image of not being aggressive on major breaking stories + last summer the affiliates bitterly complained to network executives about the poor coverage of the student <unk> in china + i was not pleased with the slow start and neither was nbc news said guy <unk> general manager of nbc affiliate wave in louisville <unk> + a spokesman for national broadcasting co. a unit of general electric co. said the network was looking into what happened + the stations said they were pleased with the extended coverage yesterday including a special <unk> edition of today + don <unk> director of news at nbc news said in an interview that we could n't get a signal out of san francisco + we were out of the box + it was horrible + the comment we 're hearing is that we were slow out of the box but beat everyone else in the stretch + nbc broadcast throughout the entire night and did not go off the air until noon yesterday + the quake postponed the third and fourth games of the world series + in place of the games abc said it planned to broadcast next week 's episodes of its prime-time wednesday and thursday <unk> except for a one-hour special on the earthquake at N p.m. last night + the series is scheduled to resume tuesday evening in san francisco + there are no commercials to make up for since we 're going to eventually broadcast the world series said a network spokesman + pinnacle west capital corp. said it suspended indefinitely its common stock dividend and reported a N N plunge in third-quarter net income + the announcement made after the close of trading caught analysts by surprise + the company closed at $ N a share down N cents in composite trading on the new york stock exchange + pinnacle west slashed its quarterly dividend to N cents per share from N cents in december saying at the time that it believed the new lower dividend was <unk> + a company spokesman said the decision to eliminate the dividend resulted from a quarterly <unk> and that circumstances had changed since the december announcement + he declined to elaborate + edward j. <unk> jr. an analyst at shearson lehman hutton inc. speculated that the sudden dividend elimination <unk> an expensive agreement with thrift regulators over the company 's insolvent merabank savings and loan unit + analysts have estimated that pinnacle west may have to <unk> between $ N million and $ N million into the merabank unit before turning the thrift over to federal regulators + the latest financial results at the troubled utility and thrift holding company based in phoenix ariz. reflect continuing problems at merabank and losses in real-estate venture-capital and <unk> operations + third-quarter net income slid to $ N million or six cents a share from $ N million or N cents a year earlier + utility operations the only company unit operating in the black in the latest period had a N N drop in profit to $ N million largely as a result of <unk> at the company 's huge palo <unk> nuclear facility and the cost of purchased replacement power + in other operations losses at merabank totaled $ N million in the latest quarter compared with a $ N million profit a year earlier + the latest quarter includes a $ N million addition to loan-loss reserves + as recently as august the company said it did n't <unk> a need for substantial additions to reserves + pinnacle 's <unk> development co real-estate unit 's loss narrowed to $ N million from $ N million + the latest period included a $ N million write-down on undeveloped land while the year-earlier period included a $ N million reserve for real-estate losses + losses at its <unk> resources co <unk> unit narrowed to $ N million from $ N million a year ago which included a $ N million write-down of utility inventories + losses at el <unk> investment co. the venture-capital operation widened to $ N million from $ N a year earlier + the latest quarter included a $ N million write-down of investments + equitec financial group said it will ask as many as N investors in N of its public real-estate limited partnerships to give approval to rolling them up into a new master limited partnership + under the proposal by equitec a financially troubled real-estate <unk> new york-based <unk> group inc. would replace equitec as the newly formed master limited partnership 's general partner and manager + shares of the new partnership would trade on an exchange like a stock + <unk> is a merchant bank whose activities include the ownership management and financial restructuring of shopping centers office buildings apartments and other real estate + in a statement equitec chairman richard l. <unk> said the transfer will benefit both the company and investors in the N limited partnerships included in the proposed <unk> + while he did n't describe the partnerships ' financial condition he said their operations continue to drain the resources of equitec + equitec posted a $ N million net loss in the second quarter on $ N million of revenue compared with a net loss of $ N million in the year-earlier period on revenue of $ N million + in new york stock exchange composite trading equitec closed at $ N a share unchanged + because of tuesday 's earthquake in northern california company officials could n't immediately be reached for additional comment + a spokesman for <unk> said the N limited partnerships which were marketed by brokerage firms and financial planners between N and N raised several hundred million dollars from investors + with airline deals in a tailspin legendary wall street trader michael steinhardt could have trouble <unk> out of usair group traders say + only a week ago when airline buy-out fever was already <unk> down mr. steinhardt was engaged in a <unk> with usair + he was threatening to take over the carrier after spending an estimated $ N million to build an N N usair stake for his investment clients + the would-be raider even hired an investment banker to give teeth to his takeover threat which was widely interpreted as an effort to flush out an acquirer for usair or for his own stake + in fighting usair mr. steinhardt was <unk> against another investor <unk> warren buffett who bought into usair to help fend off mr. steinhardt + mr. buffett 's firm <unk> <unk> holds a much bigger stake in the carrier than mr. steinhardt 's firm steinhardt partners + now in the wake of ual 's troubles in financing its buy-out the airline <unk> game has been <unk> + instead of hoping to sell his usair stake at analysts ' estimated buy-out price of $ N a share mr. steinhardt is stuck with roughly N million usair shares that cost him $ N on average but yesterday closed at N N up N in new york stock exchange composite trading + it does n't make sense to <unk> out at this price mr. steinhardt says though he has stopped his takeover talk and now <unk> usair managers ' operating skills + at the current price the usair holding represents N N of all the assets that mr. steinhardt manages + a week ago usair stock briefly soared above N after a report in usa today that mr. steinhardt might launch a hostile bid for the carrier though takeover speculators say they were skeptical + if usair is worth N as a takeover and the stock went to N the market was saying steinhardt 's presence was n't worth anything in terms of getting a deal done says a veteran takeover <unk> + traders say this all goes to show that even the <unk> money manager can get infected with crowd <unk> + in trying to <unk> usair mr. steinhardt abandoned his usual role as a passive investor and ran into <unk> + moreover unlike mr. buffett who often holds big stakes in companies for years mr. steinhardt has n't in the past done much long-term investing + mr. steinhardt who runs about $ N billion for steinhardt partners made his name as a <unk> trader moving in and out of stocks with <unk> <unk> himself and his investment clients + meanwhile his big losses for instance in N 's crash generally have been trading losses + so some see a special irony in the fact that mr. steinhardt the trader now is <unk> with a massive <unk> airline holding + analysts say usair stock might lose four or five points if the steinhardt stake was dumped all at once + as a result mr. steinhardt must <unk> himself to selling usair at a loss or to holding the shares as an old-fashioned investment + long-term investing that 's not steinhardt 's style <unk> an investor who once worked at steinhardt partners + he does n't usually risk that much unless he thinks he has an <unk> in the hole adds another steinhardt partners <unk> + in recent days traders say usair has been buying its own shares as part of a program to retire about eight million usair shares though the carrier wo n't discuss its buy-back program + if usair stepped up its share purchases that might be a way for mr. steinhardt to get out says timothy <unk> a merrill lynch analyst + but usair might not want to help mr. steinhardt he adds + in N usair chairman edwin <unk> <unk> when trans world airlines chairman carl icahn threatened to take over the carrier + mr. icahn a much more practiced raider than mr. steinhardt eventually sold a big usair stake at a tiny profit through bear stearns + mr. steinhardt also could take that route + he <unk> big trading commissions on wall street firms + however with airline stocks <unk> he might not get a very good price for his shares traders say + especially <unk> for mr. steinhardt say people close to him is that usair 's mr. <unk> wo n't even take his telephone calls + while usair is n't considered absolutely <unk> its defenses including the sale in august of a N N stake in the company to mr. buffett 's <unk> <unk> are pretty strong + usair 's deal with mr. buffett was n't exactly a <unk> example of shareholder democracy mr. steinhardt says + since last april the investor has made seven so-called <unk> filings in usair as he bought and sold the company 's stock + such disclosures of big holdings often are used by raiders to try to scare a company 's managers and to stir interest in the stock + but of course it would be highly unusual for an investment fund such as steinhardt partners to take over a company + usair and mr. buffett wo n't talk about mr. steinhardt at all + analysts say usair has great promise + by the second half of N usair stock could hit N says <unk> <unk> of shearson lehman hutton + she thinks traders should buy the stock if it <unk> to N + but meanwhile usair is expected to show losses or lackluster profit for several quarters as it tries to digest <unk> airlines which it acquired + moreover some investors think a recession or renewed <unk> wars will <unk> airline stocks in coming months + however mr. steinhardt says he 's comfortable holding usair as an investment + while he has bought and sold some usair shares in recent days he says that contrary to rumors he has n't tried to unload his holding + mr. steinhardt adds that he bought usair stock earlier this year as part of a fundamental investment in the airline group + in N mr. steinhardt says he made money trading in texas air amr and ual + overall his investments so far this year are showing gains of about N N he adds + does mr. steinhardt regret his <unk> into the <unk> game + people close to the investor say that was an experiment he is unlikely to repeat + i do n't think you 'll find i 'm making a radical change in my traditional investment style mr. steinhardt says + <unk> resources inc. said it called for redemption on nov. N its $ N million outstanding of N N convertible subordinated debentures due N + the debentures were issued in the face amount of $ N million on july N N the ashland ky. coal mining water transportation and construction company said + the company said the redemption is permitted because the price of <unk> 's stock has <unk> or exceeded $ N for N consecutive trading days a condition set in the terms of the debentures + debenture holders are expected to convert most of the debentures into common because the value of the stock received in a conversion would exceed the $ N redemption price + commodore international ltd. said it will report a loss for the first quarter ended sept. N because sales of personal computers for the home market remained weak in some major countries + that will mark the second consecutive quarterly loss for commodore and will raise additional questions about whether it can sustain the turnaround it had seemed to be engineering + commodore west <unk> pa. had said in august that it was consolidating manufacturing to cut costs and expected to be profitable in the fiscal first quarter + commodore said that its announcement is based on preliminary information and that the situation could look different by the time final results are announced early next month + in fact commodore 's fiscal fourth-quarter loss was $ N million narrower than commodore had expected a few weeks after the quarter closed + still even results approaching break-even would mark a sharp weakening compared with fiscal N first-quarter earnings of $ N million or N cents a share on sales of $ N million + reflecting concerns about commodore 's outlook its stock has plunged more than N N since may closing yesterday unchanged at $ N a share in composite trading on the new york stock exchange + the price can be expected to erode further because the loss estimate came after the market closed + commodore has seemed to be setting the stage recently for progress in the u.s. where its personal-computer sales have been so dismal for years that commodore is close to dropping off research firms ' market-share charts + commodore has assembled an experienced management team it has persuaded many more dealers to carry its products and it has <unk> a <unk> advertising campaign + but those represent long-term strategies that probably wo n't succeed quickly even if they turn out to be the right ones + in the meantime the strategies will increase expenses + commodore had been counting on its consumer business to stay sufficiently healthy to support its efforts in other areas mainly in getting schools and businesses to use its <unk> which has <unk> graphics yet has been slow to catch on because it is n't compatible with apple computer inc. or international business machines corp. hardware + but sales to consumers have become difficult during the past several months even in west germany which has been by far commodore 's strongest market + the commodore N and N mainly used for children 's educational software and games had surprised market researchers by continuing to produce strong sales even though other <unk> personal computers now operate several times as fast and have much more memory + commodore has said it expects sales to rebound but market researchers have said that sales of the <unk> products may finally be <unk> off + stock prices closed slightly higher in the first routine trading day since friday 's big plunge + some issues were affected by tuesday 's devastating earthquake in the san francisco area + activity continued to slow from the hectic pace set during the market 's plunge late friday and its rebound monday as players began to set their sights on events coming later this week + the dow jones industrial average drifted through the session within a trading range of about N points before closing with a gain of N at N + broader averages also posted modest gains + standard & poor 's 500-stock index rose N to N the dow jones equity market index rose N to N and the new york stock exchange composite index gained N to N + some N new york stock exchange issues advanced in price while N declined + but the dow jones transportation average went down for the seventh consecutive session due largely to further selling in ual + the average dropped N to N and has now lost N N of its value since the losing streak began oct. N + big board volume dropped to N shares in line with the level of trading over the past few weeks from N million tuesday + traders cited anticipation of the consumer price report for september due today and tomorrow 's expiration of october stock-index futures and options as major factors in the slowdown + in addition activity at a number of san <unk> brokerage houses was curtailed as a result of the earthquake which knocked out power lines and telephone service throughout the bay area + stocks retreated to session lows just after the opening amid worries about the market impact of the quake but quickly snapped back to higher levels with the help of futures-related program buying + the early move essentially established the day 's trading range and traders said they saw little of the program activity that has battered the market recently + i did n't expect it to be this quiet + i expected to see more volatility as some of the institutions who were spooked last friday did some selling said raymond f. devoe a market strategist at legg mason wood walker baltimore + mr. devoe said he expects prices to show some renewed <unk> over the next few sessions as institutions <unk> their stance toward the market in light of its decline + i would suspect that a lot of investment committees are looking into whether they want to be in stocks at all he said + insurance stocks were sold at the opening amid concerns about the level of damage claims the companies would receive as a result of the earthquake + but those issues recovered quickly and turned higher because of expectations that the quake and the recent hurricane hugo would set the stage for an increase in premium rates + issues of insurance brokers were especially strong + marsh & mclennan advanced N N to N N alexander & alexander services climbed N to N and <unk> & black firmed N N to N N + elsewhere in the group general <unk> rose N N to N N american international group gained N N to N N aetna life & casualty added N N to N N and cigna advanced N to N N + <unk> the parent of <unk> financial rose N N to N N + companies in the construction engineering and <unk> sectors were among other beneficiaries of earthquake-related buying + the <unk> sector was the session 's best performer among dow jones industry groups fluor rose N to N N morrison <unk> gained N N to N N foster <unk> added N to N N and <unk> climbed N N to N N + among engineering firms <unk> <unk> rose N to N N on the big board and four others rallied on the american stock exchange jacobs engineering group which gained N N to N N <unk> engineering which rose N N to N N michael baker which added N N to N N and american science & engineering up N to N N + within the <unk> group georgia-pacific climbed N N to N and <unk> added N to N N after merrill lynch recommended the forest-products issues + <unk> advanced N N to N N lone star industries gained N N to N N <unk> rose N to N N <unk> added N to N N and <unk> industries rose N N to N N + pacific gas & electric fell N to N N in big board composite trading of N million shares and pacific telesis group slipped N to N N as the companies worked to restore service to areas affected by the quake + chevron added N to N + the company based in san francisco said it had to shut down a <unk> pipeline in the bay area to check for leaks but added that its refinery in nearby richmond calif. was <unk> + other companies based in the area include hewlett-packard which rose N to N national semiconductor which went up N to N N and genentech which eased N to N N + none of the firms reported any major damage to facilities as a result of the quake + bankamerica eased N to N N and wells fargo lost N to N N the two bank holding companies based in san francisco were forced to curtail some operations due to the temblor + among california savings-and-loan stocks h.f. ahmanson eased N to N N <unk> slid N to N N great western financial dropped N to N N and golden west financial fell N to N N + ual the parent company of united airlines swung within a <unk> range during the course of the session before closing at N N down N N on N million shares + british airways a member of the group that had offered $ N a share for ual in a leveraged buy-out said it had yet to receive a revised proposal and it was in no way committed to the completion of a bid + separately investor marvin davis withdrew his backup $ 300-a-share takeover offer + while ual faltered amr the parent of american airlines pulled out of its recent <unk> by rising N to N + the stock had been on the decline since the financing for the ual buy-out fell through on friday and developer donald trump subsequently withdrew a takeover offer of $ N a share for amr + also amr was the most active big board issue N million shares changed hands + gte added N N to N N + painewebber repeated a buy recommendation on the stock and raised its N earnings estimate by N cents a share to $ N + colgate-palmolive advanced N N to N after saying it was comfortable with analysts ' projections that third-quarter net income from continuing operations would be between N cents and $ N a share up from N cents a year ago + springs industries dropped N N to N + analysts at several brokerage firms lowered their N and N earnings estimates on the company after its third-quarter results proved disappointing + trinova third-quarter loss after a charge for a planned restructuring which will include the closing or <unk> of about N N of its plants and a work force cut of about N over three years + the amex market value index snapped a <unk> losing streak by rising N to N + volume totaled N shares + carnival cruise lines class a rose N N to N N + the company citing market conditions postponed a $ N million debt offer + philip morris cos. posted a N N jump in third-quarter profit on a N N revenue increase reflecting strength in the company 's cigarette food and brewing businesses + net income rose to $ N million or N cents a share from the year-earlier $ N million or N cents a share + per-share figures have been adjusted for a <unk> stock split paid earlier this month + the new york-based tobacco food and beer concern said revenue increased to $ N billion from $ N billion + in composite trading on the new york stock exchange philip morris closed at $ N up N cents + philip morris disclosed little detailed information about performance by major business lines except to say that most including philip morris u.s.a. kraft general foods and miller brewing co. posted increased revenues + for the nine months net increased N N to $ N billion or $ N a share from $ N billion which included $ N million reflecting the effect of an accounting change + <unk> inc. citing depressed gold prices said it plans to suspend operations for an <unk> period at its <unk> gold mine in manitoba + <unk> said in vancouver british columbia that the production halt will be phased in over a <unk> period + <unk> currently produces gold at a cash operating cost of $ N an ounce which is high by industry standards and $ N or so above the current spot price + <unk> said it also plans in the third quarter to write down the carrying value of the <unk> mine by N million canadian dollars us$ N million and to write off most of the c$ N million carrying value of its <unk> gold property in british columbia + <unk> did n't say what impact the moves would have on total gold output or earnings and company officials were n't available + computer associates international inc. garden city n.y. and digital equipment corp. said they agreed to jointly develop software to help manage digital 's vax computers + computer associates has <unk> out a huge business selling such software for use in managing networks of international business machines corp. computers but needs to find new markets if it is to maintain its growth rate of N N and more each year + the market for <unk> software for digital 's hardware is <unk> enough that a giant such as computer associates should do well there + at the same time the market is smaller than the market for <unk> software + for one thing digital maynard mass. has sold fewer machines + in addition its machines are typically easier to operate so customers require less assistance from software + wang laboratories inc. <unk> mass. <unk> by declining demand for its computers reported a $ N million <unk> loss in its first quarter ended sept. N + revenue fell N N to $ N million from $ N million although some of the decline was caused by discontinued operations + wang had previously forecast a loss + the company reiterated that it expects another loss in the second quarter and for the full year although it expects a profitable fourth quarter + a year ago wang had earnings of $ N million or eight cents a share in its first quarter including a $ N million loss from discontinued operations + the latest period loss included a $ N pretax charge for severance payments + dayton hudson corp. said it accepted for purchase seven million common shares at $ N each under the terms of a dutch auction <unk> offer + the offer expired at N a.m. yesterday + in a dutch auction the buyer sets a price range and holders give a price in that range at which they 're willing to sell their shares + the buyer then picks a price and buys shares at that price from holders who offered to sell at that price or lower + dayton hudson 's repurchase offer representing about N N of its common shares outstanding had established a range of between $ N and $ N for the buy-back + dayton hudson said it accepted all <unk> shares tendered at or below the final $ N price the preliminary <unk> factor for other shares tendered at or below the final price is N N + the <unk> retailer said it expects to pay for the seven million shares next thursday + tendered shares not purchased will be returned to holders + in new york stock exchange composite trading dayton rose $ N to $ N + continental bank corp. 's third-quarter net income slipped N N despite a big gain from the sale of the company 's london headquarters building + the $ N million gain on the sale was offset by lower interest income poorer results from foreign-exchange trading and a $ N million loss on the sale of a unit securities settlement corp + chicago-based continental earned $ N million or $ N a share compared with $ N million or $ N a share a year earlier + the N quarter also included one-time gains totaling about $ N million + the bank which has loss reserves equal to about half its long-term and <unk> loans to less-developed nations said it does n't think additional reserves are required + enron corp. said a subsidiary and two united kingdom firms are studying the <unk> of <unk> a N <unk> <unk> power plant in northern england as an <unk> of the government 's privatization program + enron power corp. a unit of the houston natural gas pipeline company would design construct and run the plant + gas to fuel it would be <unk> from the north sea + a subsidiary of britain 's imperial chemical industries would buy electricity and steam from the proposed station + surplus power would be sold on the open market enron said + also participating in the study enron said is the national power division of britain 's central electricity generating board + upon privatization national power will be responsible for N N of the country 's power generating business + viacom inc. new york reported that its third-quarter loss widened to $ N million or N cents a share primarily because of interest expense of $ N million + a year ago viacom had a net loss of $ N million or $ N a share + interest expense in the N third quarter was $ N million + in the year-ago quarter viacom also paid preferred stock dividends of $ N million viacom exchanged its preferred stock for debt in march + the communications and entertainment company said revenue rose to $ N million from $ N million + viacom attributed the improvement to higher earnings from operations in its networks segment which includes the <unk> and showtime networks + viacom said it also restructured bank debt under a $ N billion unsecured bank agreement that offers significant interest rate savings + <unk> m. <unk> viacom 's chairman said viacom emerged from our leveraged buy-out structure and gained substantial operating and financial flexibility through the bank pact + trinova corp. <unk> ohio said it is launching an extensive restructuring of its core business and took a charge that resulted in a loss of $ N million or N cents a share for the third quarter + trinova said it will close move or overhaul N of its N manufacturing facilities and over the next three years cut N jobs from its current world-wide payroll of N employees + most of the factory closings and job cutbacks will affect trinova 's <unk> operations which manufacture automotive plastics <unk> and other industrial and automotive parts + <unk> and plastics together account for about N N of trinova 's total annual sales + in a separate announcement trinova said the <unk> group has agreed to sell its <unk> <unk> and related businesses to midland <unk> inc. of <unk> conn + terms were n't disclosed + to provide for the restructuring 's costs trinova said it took an after-tax charge of $ N million or $ N a share in the third quarter + the $ N million net loss compares with net income of $ N million or N cents a share a year earlier + sales rose N N to $ N million from $ N million + trinova closed at $ N down $ N in new york stock exchange composite trading + a group of investors including <unk> <unk> 's <unk> communications corp. and <unk> holding s.a. have agreed to buy N N of odeon <unk> a financially troubled italian tv station + florio <unk> managing director of <unk> <unk> said the investors would pay only a <unk> one <unk> for the station but we have agreed to raise the capital that will enable the company to continue operating + it 's sort of a chapter N situation he added referring to the u.s. bankruptcy law that protects companies from creditors while they restructure + <unk> odeon which draws about N N of italian tv viewers has debt of N billion lire $ N million mr. <unk> said + he added that details of the recapitalization still have to be worked out but that <unk> will take N N of odeon rome film producer bruno <unk> will take N N and the remaining N N currently owned by <unk> will eventually be sold to other investors + <unk> <unk> odeon 's owner will retain his N N stake + italy 's supreme court this year ordered parliament to write a law that will regulate media ownership + we think that it 's going to be far more favorable to own a station before the law is passed than to try to buy one afterward mr. <unk> said + san francisco area officials gave the media high marks for helping people find shelter and obtain emergency information after tuesday 's catastrophic earthquake + the press has been doing an excellent job + they are telling people what roads are closed and just keeping the public informed has helped to keep the panic down said james ball a station supervisor at daly city police department + mr. ball noted that television stations featured people holding up phone books explaining where to call for help + radio stations provided an emergency number for people who <unk> gas but did n't know how to turn off their gas supply + kim schwartz a <unk> for the american red cross in los angeles said television and radio stations in san francisco played a very positive role by providing the address of N shelters of the red cross and by giving out the red cross number for contributions to help earthquake victims N + the san francisco examiner issued a special edition around noon yesterday that was filled entirely with earthquake news and information + the examiner and the san francisco <unk> were able to publish despite tuesday 's quake which occurred close to deadline for many newspapers + sterling software inc. said it lost its bid to supply software services to the national aeronautics and space administration 's <unk> research center at <unk> field calif + sterling which estimated the value of the contract at $ N million said nasa selected another bidder for final negotiations + in N dallas-based sterling <unk> a similar decision by nasa involving the same contract claiming it had submitted the lowest bid + as a result last march the general services administration board of contract appeals directed nasa to reopen negotiations on the contract + sterling said it had requested a briefing by nasa but had not decided whether to protest the agency 's latest decision + consolidated rail corp. new york reported that third-quarter net income climbed N N to $ N million or $ N a share exceeding analysts ' expectations + in the year-earlier quarter the freight railroad earned $ N million or $ N a share + james a. <unk> chairman and chief executive officer noted that earnings advanced in the face of a drop in business brought on by the general economic slowdown + revenue slipped N N to $ N million from $ N million + for the rest of N mr. <unk> said <unk> 's traffic and revenue will reflect the sluggish economy but <unk> will continue to take steps to control and reduce costs + for the nine months <unk> earnings grew N N to $ N million or $ N a share from $ N million or $ N a share + revenue was flat at $ N billion + georgia gulf corp. hurt by declining sales and falling chemical prices said third-quarter earnings fell N N to $ N million from $ N million in the year-earlier period + sales declined N N to $ N million from $ N million + the atlanta-based chemical manufacturer said lower prices hurt margins for most products + we did see some relief in raw material costs but it was n't sufficient to offset the drop in sales prices james r. <unk> the company 's chairman and chief executive officer said in a statement + on a per-share basis quarterly earnings remained at $ N the same as last year because of the company 's share buy-back program + georgia gulf had N million shares outstanding on average in the quarter compared with N million in the third quarter of N adjusted for a stock split paid in january N + in composite new york stock exchange trading stock in georgia gulf which has been mentioned as a takeover candidate rose $ N a share to close at $ N + this <unk> city dispatched inspectors <unk> and other <unk> personnel to aid san francisco + but a secondary agenda among officials in the city of angels was to learn about the <unk> plans that work and those that do n't + los angeles mayor tom bradley used the opportunity to push the city council harder to pass a measure establishing a <unk> reserve of $ N million + the amount would help los angeles cope in the first few weeks after its own anticipated quake while waiting for federal assistance to arrive + after san francisco mayor art agnos spoke on television of the need for building inspectors to check the <unk> of buildings los angeles dispatched N inspectors to help + and the county of los angeles placed its <unk> and <unk> on alert ready to send in <unk> and <unk> san francisco that the city has N hospital <unk> at its disposal + two los angeles radio stations initiated red cross <unk> campaigns and one los angeles bank manager <unk> over $ N of his own money for relief purposes the red cross said + the los angeles red cross sent N <unk> N <unk> and N <unk> of <unk> blood + it is also pulling N people out of puerto rico who were helping <unk> hugo victims and sending them to san francisco instead + the arizona corporations commission authorized an N N rate increase at tucson electric power co. substantially lower than recommended last month by a commission hearing officer and barely half the rise sought by the utility + the ruling follows a host of problems at tucson electric including major write-downs a N N slash in the common stock dividend and the departure of former chairman <unk> <unk> during a company investigation of his stock sales + the arizona regulatory ruling calls for $ N million in added revenue yearly compared with a $ N million boost proposed by the commission hearing officer + the company had sought increases totaling $ N million or N N + the decision was announced after trading ended + tucson electric closed at $ N a share down N cents in new york stock exchange composite trading + a tucson electric spokesman said the utility was disappointed by the commission 's decision and concerned about the financial integrity of the company + south korean president roh <unk> woo <unk> aside suggestions that the won be <unk> again said the currency 's current level against the dollar is appropriate + his comments made in response to reporters ' questions at the national press club here signaled that seoul is <unk> u.s. pressure for a further rise in the currency 's value + the u.s. wants a higher won to make south korea 's exports more expensive and help trim seoul 's trade surplus + many south korean business people want a devaluation instead arguing that the won 's recent gains already have weakened the country 's export performance + mr. roh also said south korea is taking steps that would free the won to respond to market forces + seoul has pointed to its lack of a foreign exchange market as one reason the won 's value remains heavily controlled + mr. roh said a u.s. demand for the removal of south korean import quotas on beef will be resolved <unk> but gave no hint when that will happen + speaking to a joint meeting of congress earlier he said south korea ca n't move quickly on such agricultural trade issues without causing political and social <unk> + great american bank said its board approved the formation of a holding company enabling the savings bank to pursue <unk> banking activities under a new federal law + the proposed holding company 's primary purpose would be to allow great american to continue engaging in real estate development activities it said + those activities generated $ N million in operating profit last year + but according to great american such profits do n't count toward meeting the san diego savings bank 's new capitalization requirements under N federal law + the new real estate unit would have a separate capital structure to comply with the law + the proposed holding company would also consolidate great american bank in san diego and its tucson ariz. savings bank into a single federally chartered institution in san diego + the consolidation is expected to save $ N million a year in administrative costs a great american spokesman said + dale lang who this week completed the acquisition of the publisher of ms. and sassy is <unk> about the challenge he is taking on + mr. lang admits that ms. is in dire <unk> and that sassy needs big promotional dollars to keep it alive + but the <unk> publisher has moved quickly and <unk> to deal with the magazines ' problems + last friday he told the staff of ms. that the magazine in january would begin publishing without advertising + mr. lang will do away with expensive circulation drives not to mention sales staff and attempt to publish the <unk> magazine supported by circulation revenue alone + any fool can publish a money-losing magazine + i want to publish one that succeeds said mr. lang + for ms. it 's time to publish for the reader not the advertiser + as for sassy which competes directly with news corp. 's <unk> magazine mr. lang says that in the next two years he will spend $ N million promoting and improving the magazine + though sassy has grown quickly since its debut in march N it has been the target of conservative lobbyists and <unk> advertisers who <unk> at its frank editorial matter on <unk> problems + mr. lang said the former australian owners of sassy were <unk> by the moral majority + their reaction was to do nothing and ride it out + he said sassy will keep its <unk> tone but added we will keep a close watch on the editorial content of the magazine + sassy already has recovered circulation has quickly passed the N mark and advertising pages have stabilized this year at more than N + what 's more mr. lang says he has what all publishers wish for a <unk> <unk> niche + <unk> is written more for mothers not their daughters said mr. lang + but sassy has a different spirit + it gets more mail in a month than mccall 's got in a year and it 's not from mothers + i feel about sassy like i did about working woman N years ago + mr. lang took on ms. and sassy with the acquisition of <unk> publications inc. by his newly formed lang communications + lang owns N N of <unk> while citicorp owns the rest through its citicorp venture capital partners + two weeks ago citicorp and mr. lang pumped $ N into <unk> just to keep the doors open + industry observers have <unk> mr. lang on what some call his <unk> handling of ms. but his track record in magazine publishing in general has gotten mixed reviews + besides ms. and sassy closely held lang communications includes success a magazine for entrepreneurs and small businesses and working woman and working mother two monthly magazines + working woman with circulation near one million and working mother with N circulation are legitimate magazine success stories + the magazine success however was for years lackluster and <unk> + only recently has it been <unk> <unk> and its editorial product improved + success is expected to gain at least because of the recent <unk> of rival venture another magazine for growing companies + working woman and working mother have operated as part of working <unk> 's group a <unk> joint venture between mr. lang and time warner inc + the joint venture is being <unk> with mccall 's magazine being sold last summer to the new york times co. 's magazine group for about $ N million and time warner agreeing to sell back its N N interest in working woman and working mother to mr. lang + executives at time inc magazine co. a subsidiary of time warner have said the joint venture with mr. lang was n't a good one + the venture formed in N was supposed to be time 's low-cost safe entry into women 's magazines + mr. lang surprised time soon after joining forces when he said he would negotiate rates <unk> with advertisers a practice common in broadcasting but considered <unk> by magazine publishers + in addition mccall 's put in a less than <unk> performance + until a recent comeback it saw steep losses in ad pages and circulation + time executives complained about the <unk> editorial quality and in the end one time executive who asked not to be identified said frankly mccall 's and the joint venture were an embarrassment + mr. lang feels that time 's priorities changed + their management changed right after the venture was formed and i do n't think they were comfortable getting into the competitive wars of women 's service magazines + today mr. lang believes his magazines will offer what many women 's magazines do n't + we write straight for women on their level he said + we do n't have passive readers + mr. lang points out that even success in part fits the company 's image since about N N of its <unk> is female + mr. lang has named carol <unk> N as group publisher of new york-based lang communications + she will oversee working woman working mother and success magazines and retain her post as publisher of working woman + the sale price of mccall 's twice what mr. lang originally paid for it will finance lang communications ' buy-back of time warner 's N N interest in working woman and working mother + mr. lang says he is n't <unk> new acquisitions at least for now + we would have to go outside to banks to get the money and i am not ready to do that he said + besides we have enough on our plate + there is plenty of work to be done on what we have + britain 's monopolies and mergers commission wednesday cleared rhone-poulenc s.a. 's purchase of a specialty <unk> unit from monsanto co. saying the purchase was unlikely to have any lasting impact on u.k. industrial consumers + the commission which was asked to study the deal by the department of trade and industry after its announcement in february said the diversity of global supply of chemicals used in making <unk> drugs was great enough to offset the dominant u.k. market share rhone-poulenc would gain through the acquisition + the french chemical giant would hold an N N share of the u.k. market for <unk> acid <unk> <unk> and bulk <unk> + the commission found that if the british government attempted to block the merger rhone-poulenc would likely respond by closing the <unk> plant monsanto operates in <unk> removing the matter from u.k. jurisdiction + morrison <unk> corp. posted third-quarter net income of $ N million or N cents a share continuing a rebound from steep year-ago losses + in the third quarter a year-earlier the construction and engineering concern posted a loss of $ N million or $ N a share + revenue in the latest quarter rose N N to $ N million from $ N million + in composite trading on the new york stock exchange morrison gained $ N to $ N + morrison said the engineering and construction segment performed well with the mining and <unk> operations making important contributions + <unk> <unk> morrison had losses totaling $ N million over the two years ended in december but it has surged back to profitability as a result of cost-cutting and shedding of unprofitable operations + in the nine months the company 's net income was $ N million or $ N a share compared with a year-earlier loss of $ N million or $ N a share + revenue rose N N to $ N billion from $ N billion + the house ethics committee officially cited rep. jim bates d. calif for <unk> <unk> two female employees but did n't recommend formal disciplinary action + rep. bates said he accepted the finding but one of the victims <unk> <unk> denounced the ethics panel 's action as absurd + acting more than a year after ms. <unk> filed a complaint the panel issued a letter of <unk> saying rep. bates had admitted conduct that violated a house rule <unk> discrimination against employees on account of their sex + it ordered rep. bates to write letters of <unk> to ms. <unk> and to a second <unk> karen <unk> + rep. bates said he would write the letters as ordered + i accept the resolution of the matter by the ethics committee he said + the panel also warned rep. bates that any further violations may result in a recommendation that disciplinary action be considered + but ms. <unk> asked who in their right mind is going to file another complaint with the ethics committee + rep. bates has publicly <unk> for <unk> from voters and was <unk> with N N of the vote last november + mesa airlines said the takeover offer it received earlier this week from stateswest airlines is for a combination of cash and securities valued by stateswest at $ N a mesa share + both companies are regional carriers in the southwest + when it made the offer stateswest declined to disclose details and asked mesa to do the same + but <unk> <unk> mesa said the offer was for $ N in cash and unspecified stateswest securities valued at $ N a share + based on the number of mesa shares outstanding not already owned by stateswest the proposed takeover would have a value of about $ N million + stateswest owns N N of mesa + last week mesa rejected a general proposal from stateswest that the two carriers combine + in response to the specific offer gary <unk> mesa vice president said management will ask directors to employ a financial consultant to advise them + <unk> <unk> group plc a u.k. engineering company reported a N N jump in pretax profit for the six-month period ending june N + pretax profit rose to # N million $ N million from # N million $ N million matching analysts ' expectations which ranged from # N million to # N million + profit after taxes and minority interests increased N N to # N million from # N million in the year-earlier period while earnings per share rose N N to N pence N cents from N pence N cents + <unk> <unk> said its core electrical products division enjoyed strong growth with a N N rise in operating profit during the period + <unk> financial group reported a N N increase in net income in the third quarter led by a N N gain in its financial services group + fleet 's net was $ N million or N cents a primary share compared with $ N million or N cents a share a year earlier + the <unk> r.i. financial services group which includes <unk> leasing and <unk> operations contributed $ N million to net up from last year 's $ N million + fleet also noted that unlike other banking companies in the northeast it has been only marginally hurt by nonperforming loans that have resulted from the <unk> regional real estate market + fleet reported nine-month net of $ N million or $ N a primary share up from $ N million or $ N a share a year earlier + <unk> franklin federal savings & loan association said it expects to post a third-quarter net loss of about $ N million or $ N a share as a result of adding $ N million in loan-loss reserves + the <unk> ore. thrift which has $ N billion of assets had net income in last year 's third quarter of $ N million or N cents a share + franklin said it expects to report earnings for the latest quarter next week + the additional reserves <unk> to possible write-downs of certain assets held by franklin and its subsidiaries and the default of a bond in its investment portfolio the thrift said + according to a spokeswoman they also <unk> to changes franklin will have to make in its accounting procedures to comply with new federal capitalization requirements for thrifts + the company 's shares closed yesterday at $ N off N cents in national over-the-counter trading + arkla inc. said that as part of a program to improve profitability it will take a total of $ N million in after-tax charges by year end + it also announced an initial public offering of N N of its gas exploration and production subsidiary + the <unk> <unk> natural gas company said the charges though partially offset by a one-time gain from the offering will result in a full-year after-tax loss + last year the company had net income of $ N million or $ N a share + arkla said it will report $ N <unk> in one-time charges against continuing operations for the third quarter reflecting settlement of certain natural gas contracts + it said it will take a $ N million fourth-quarter charge against discontinued operations reflecting certain write-downs and the planned sale of a unit + arkla said its initial offering of N N of arkla exploration co. is expected to result in a net gain of about $ N million which will be used to pay down arkla debt + arkla exploration owns sizable gas and <unk> reserves in the south and southwest + south africa negotiated a new debt agreement with its major foreign creditors for about $ N billion of its foreign debt outstanding said chris <unk> governor of the reserve bank and the country 's chief debt negotiator + the new agreement will last for N N years starting july N N when the current agreement expires + the announcement <unk> with the start of the commonwealth ministers conference in kuala lumpur where proposals for renewed sanctions against south africa including moves to block settling of a new debt agreement were scheduled to be discussed + as with the previous pact the new agreement covers the country 's debt inside the net which applies mainly to <unk> due to overseas creditor banks by the private sector + the agreement calls for south african <unk> to make <unk> in eight <unk> starting in december of next year + the redemption then would be at N N of the total debt increasing to N N in february N and to N N at six-month <unk> thereafter + a revised provision would be included for the conversion of short-term claims inside the net to long-term loans outside the net + these claims would be <unk> over a 10-year period + foreign debt falling outside the net of affected <unk> which mr. <unk> estimated at $ N billion would remain not subject to the debt arrangements + new york times co. said net income rose in the third quarter because of a one-time gain on the sale of the company 's cable-tv system + net surged to $ N million or $ N a share from $ N million or N cents a share a year earlier + the latest quarter included a gain of $ N million or $ N a share from the sale of new york times cable completed in august + exclusive of the gain operating profit declined N N to $ N million or N cents a share from $ N million or N cents a share + the decline primarily reflected the <unk> from acquiring mccall 's golf world u.s. and sailing world magazines lower equity earnings from the forest-products group because of price discounting and an unfavorable exchange rate and an N N decline in advertising <unk> at the new york times the company 's flagship newspaper + advertising volume at the company 's N regional newspapers decreased N N + the company said the negative factors are expected to continue into next year + revenue rose N N to $ N million from $ N million + democrat gene taylor won a special election to fill the congressional seat vacated by the death of republican <unk> smith taking back the gop 's lone <unk> in mississippi 's house delegation + mr. taylor 's overwhelming victory against republican tom anderson <unk> a seat the republicans had held for N years and gives the democrats their fifth victory in the seven special house elections held this year + mr. taylor a <unk> state senator from bay st. louis won N N of the vote in a district that has voted republican in the past five presidential elections and that was once represented by republican u.s. sen. <unk> <unk> + mr. taylor 's victory was an embarrassment for both state and national republicans + mr. anderson a former <unk> aide received campaign assistance from the senator and from president bush who visited the district last week + even so mr. taylor carried all but one of the district 's dozen counties + rep. smith died in a plane crash on aug. N + wall street journal reporters called companies with headquarters or facilities in the bay area in a bid to assess the damage to their operations caused by tuesday 's earthquake + the calls reached many but certainly not all of the publicly held companies with operations in the area + in most cases damage to company facilities and operations was minimal + <unk> services inc. menlo park temporary personnel agency annual sales of $ N million otc said all N offices in bay area were working but in various states of disarray + business was slow because many companies were closed yesterday + advanced micro devices inc. sunnyvale integrated circuit maker annual sales of $ N billion nyse had only minor structural damage + most of its N workers were at work yesterday and no production slowdown was anticipated as long as electricity remains available + <unk> corp. sunnyvale computer maker annual sales of $ N billion amex was closed yesterday and no damage estimates were available + american building maintenance industries inc. san francisco provider of maintenance services annual revenue of $ N million nyse had some damage to headquarters and lost phone service but operations were moved to a branch office and are running smoothly thanks to a <unk> computer system the company had developed before the quake + american president cos. oakland shipping concern annual sales of $ N billion nyse had little damage to the <unk> <unk> or rail track at its <unk> facility near the collapsed route N <unk> + the company expects to work a ship due in today with minimal delays despite sporadic power + anacomp inc. indianapolis nyse said its <unk> corp. unit a sunnyvale maker of computer disks and <unk> with annual sales of $ N million had only minor damage and is fully operational + <unk> electronics inc. san jose distributor of electronic parts annual sales of about $ N million nyse sustained very little damage anticipated being in N N operating condition by midday + apple computer co. cupertino computer maker annual sales of $ N billion otc sustained some structural damage + offices were closed yesterday + applied materials inc. santa clara maker of <unk> machine systems annual sales of $ N million otc had slight damage to headquarters no damage to manufacturing plants + company with N workers in area is fully <unk> + <unk> corp. sunnyvale maker of personal computers and software annual sales of $ N million amex had minor damage and expects to be fully operational by tomorrow + bankamerica corp. san francisco bank holding company annual revenue of $ N billion nyse yesterday had no power at its headquarters N of its N northern california branches were closed and N of N automatic teller machines were closed in the area + securities trading was conducted in a backup facility in concord + <unk> corp. san francisco engineering and construction concern annual sales of $ N billion had only minor structural damage at its three buildings in the city but its computers were knocked out + backup computer tapes were <unk> to an ibm office in philadelphia and the company expects its mainframe to be up in a few days + workers except for senior management were asked not to report for work yesterday + <unk> laboratories inc. <unk> biological research and <unk> leader $ N million in annual sales amex said its richmond warehouse north of san francisco was closed because of debris and fallen shelves + it expects to be fully operational by next week + <unk> international <unk> valley personal computer and software designer annual sales of $ N million had heavy damage to its headquarters and was conducting business from its parking lot + the company does n't expect any shipping delays + businessland inc. san jose computer retail company annual sales of $ N billion nyse said all N corporate office and stores in the area were open with the exception of a retail center in san francisco 's business district + that facility should reopen today + carter <unk> <unk> stores inc. los angeles retailer annual sales of $ N billion nyse said nine of its N <unk> stores in the area were closed because of water damage broken windows and fallen displays + a spokesman said sales are expected to be hurt but the losses are covered by insurance + chevron corp. san francisco oil company annual sales of $ N billion nyse had minor damage to downtown headquarters but structural damage closed two of its seven buildings in san <unk> industrial park + company expects to be fully operational by next week + <unk> co. oakland consumer products annual sales of $ N billion nyse was closed yesterday but plans to reopen today or tomorrow + meanwhile orders are being <unk> through <unk> products unit in louisville ky. but computer problems mean they must be processed <unk> + expects to be fully operational early next week + <unk> inc. palo alto laser maker annual sales of $ N million was closed yesterday but expects to reopen today + consolidated <unk> inc. menlo park trucking company $ N billion in annual sales nyse had structural damage to <unk> motor freight subsidiary 's office in palo alto no damage in menlo park + <unk> companies inc. palo alto medical products maker annual sales of $ N million nyse had little damage and was in full operation yesterday + dayton hudson corp. minneapolis retailer annual sales of $ N billion nyse closed seven of its N bay-area target discount stores and nine of its N <unk> 's department stores because of pending reviews by structural engineers or requests from authorities who were trying to keep shoppers off the freeways + the company expects to reopen three target stores and all but two <unk> 's today or tomorrow + <unk> inc. south san francisco maker of magnetic <unk> <unk> equipment annual sales of $ N million amex had minor damage mostly in a <unk> + the company plans to be fully operational today + digital equipment corp. maynard mass. computer maker annual sales of $ N billion nyse had structural damage at its san francisco sales office but no <unk> damage elsewhere in the area including its cupertino plant + <unk> grand ice <unk> inc. oakland ice <unk> maker annual sales of $ N million otc said it is delivering ice <unk> wherever roads are <unk> + <unk> systems inc. <unk> maker of personal computers and peripherals annual sales of $ N million otc had minor damage and was almost fully operational yesterday + exxon corp. new york oil company nyse said its refinery northeast of san francisco was operating at a slightly reduced rate as a <unk> in case of aftershocks + ford motor co. dearborn mich. auto maker annual sales of $ N billion nyse said its three ford aerospace unit facilities in the bay area including a <unk> operation in palo alto had no major damage + gap inc. san bruno clothing retailer annual sales of $ N billion nyse expects most of its stores to return to full operation and all N of its bay-area workers to be back at work by today + genentech inc. south san francisco biotechnology company annual sales of $ N million nyse sustained no major damage and expects to be fully operational today + general electric co. fairfield conn. consumer industrial products and broadcasting concern annual sales of $ N billion nyse said its ge nuclear energy unit with N bay-area employees had only minor damage at its san jose headquarters + business was n't disrupted + general motors corp. detroit auto maker annual sales of $ N billion nyse sustained about N injuries to workers and some <unk> water <unk> at its new united motor manufacturing inc. facility in <unk> a joint venture with toyota motor corp + there was limited production of some models yesterday but it was n't clear when the normal <unk> pace will resume + plant officials are still assessing damage to parts suppliers and port of oakland facilities that handle shipments to the plant + golden west financial corp. oakland savings and loan annual revenue of $ N billion nyse had only minor damage to a few branches and no injured employees + hewlett-packard co. palo alto personal computer and electronic equipment maker annual sales of $ N billion nyse said there will be a minimal suspension of manufacturing for an <unk> period + the computer system was operating so orders could be taken + the company has N employees and more than N buildings in the bay area + one building in palo alto may be damaged beyond repair + others had lesser damage and there were no injuries among workers + damage will be easily in the millions the company said + <unk> corp. <unk> manufacturer of engineered parts annual sales of $ N million nyse had little damage beyond some phone trouble + <unk> mining co. san francisco gold and general <unk> annual sales of $ N million nyse said its headquarters was closed yesterday because of power failures and lack of water but that it may reopen today + it expects any impact on its business to be slight + <unk> financial corp. <unk> financial services concern annual revenue of $ N million otc said three of its N bay-area branches were closed yesterday + the company expects all branches to reopen today + <unk> corp. santa clara maker of computer accessories annual sales of $ N million otc said telephones were out at its headquarters but service should be restored by today + the company said it was doing a brisk business in computer <unk> <unk> <unk> and <unk> power sources + intel corp. santa clara semiconductor maker annual sales of $ N billion otc had some damage and few people were at work yesterday + international business machines corp armonk n.y. maker of business machines nyse said flooding caused by broken water pipes closed its san jose plant which makes high-end <unk> devices + the plant and its N employees gradually will resume operations over the next several days the company said + also closed yesterday were the company 's santa <unk> <unk> lab and the <unk> research center + the concern 's national service division opened a center for emergency service in <unk> creek as part of its <unk> plan + kaiser aluminum & chemical oakland metal and chemical maker annual sales of $ N billion had slight structural damage to its <unk> headquarters building and employees stayed home yesterday to allow crews to clean up + lockheed corp. <unk> aerospace and defense concern annual sales of $ N billion nyse said its lockheed missiles & space division closed its santa cruz test facility because of power <unk> and <unk> + the closing affecting N employees will continue at least until roads are cleared + it was n't known to what extent if any the facility was damaged + it also was n't known what the impact will be on the division 's work which includes the navy 's <unk> <unk> missile program and the air force 's strategic defense initiative + the division had only minor damage at its sunnyvale headquarters and plant in palo <unk> and no delays in deliveries are expected + <unk> drug stores inc. <unk> creek <unk> chain annual sales of $ N billion nyse had only minor damage and only four of its N bay-area stores all in the santa cruz area were closed + all are expected to reopen soon + lsi logic corp. <unk> maker of <unk> integrated circuits annual sales of $ N million nyse has halted manufacturing at its three plants in the area while they are <unk> for structural damage + the company expects to resume full operations by today + r.h. macy & co. new york retailer annual sales of $ N billion said there was minor damage to its N macy stores and nine i. <unk> stores in the bay area + <unk> corp. cupertino maker of computer integrated manufacturing processes annual sales of $ N million nyse had only minor damage but workers spent most of yesterday cleaning up + national semiconductor corp. santa clara semiconductor maker annual sales of $ N billion nyse said it had no major structural damage at its N bay-area buildings but two workers were injured + production resumed yesterday + <unk> in a <unk> plant needed immediate repairs + <unk> inc. seattle retailer annual sales $ N billion otc five of this <unk> chain 's nine stores in the bay area were closed yesterday damage appears primarily cosmetic hopes to reopen four of the stores by today and the fifth by saturday + <unk> systems corp. <unk> provider of computer programming and software services annual sales $ N million four of N offices and buildings in the <unk> and san mateo areas were closed N N of computer and telephone systems are operating expects to be back to full operation by the end of the week + pacific gas & electric co. san francisco electric gas and water supplier annual sales $ N billion some minor damage to headquarters <unk> damage to four nearby <unk> severe structural damage to a major power plant at moss landing extensive damage to gas lines and electric lines N <unk> without electricity and N without gas can not <unk> electricity until it is certain there are no gas leaks no predictions on when this will happen + pacific telesis group san francisco telecommunications holding company annual sales of $ N billion no damage to headquarters but no power the power failure has caused a delay in the release of the company 's earnings report major concern is subsidiaries pacific bell and pacific telesis cellular both of which sustained damage to buildings structural damage to several cellular sites in santa cruz volume of calls on cellular phones N times the usual causing a big slowdown + procter & gamble co. <unk> company 's <unk> coffee plant in south san francisco was closed following the earthquake no injuries or major damage other plants around country can make up for any lost production + quantum corp. <unk> manufactures rigid <unk> drives for small business computers word processors annual sales $ N million otc open for business minor structural damage + <unk> corp. menlo park plastics manufacturer annual sales $ N billion no major damage and no production slowdown is anticipated + ross stores inc. newark discount apparel chain annual sales $ N million two of N stores in bay area closed both could open as early as today + <unk> stores inc. oakland retail food chain annual sales of $ N billion some structural damage to headquarters and no power major problems <unk> products to those stores that remained open no numbers on how many stores closed + charles schwab & co. san francisco discount brokerage firm annual sales of $ N million had only minor damage to headquarters building and was up and running for yesterday 's market open + firm will not however resume 24-hour service until power in city is restored + office closed yesterday at N p.m. edt + seagate technology <unk> valley maker of hard disk drives for computers annual sales of $ N billion otc closed to assess what appeared to be minor damage to some of its N buildings + southern pacific transportation co. san francisco railroad annual sales of $ N billion had only minor damage to headquarters and tracks and expects to be fully operational tomorrow + st. louis southwestern railway co. unit halted all service tuesday night but has since restored some freight lines and limited <unk> service between san francisco and san jose + sun microsystems inc. mountain view maker of desktop computers annual sales $ N billion otc no injured employees and very little damage to buildings + closed yesterday due to power difficulties + tandem computers inc. cupertino computer maker annual sales of $ N billion nyse said it had no significant damage and should be fully operational within a week + many employees stayed home yesterday but customer service was being maintained + <unk> corp. san francisco financial services and insurance company annual sales of $ N billion nyse said its headquarters the well-known downtown <unk> building was intact but closed yesterday + <unk> associates inc. palo alto instrumentation and semiconductor equipment company annual sales of $ N billion had only minor damage and no <unk> were anticipated + <unk> technology inc. san jose maker of semiconductor products annual sales $ N million otc minimal damage to facilities no injuries expected operations to return to normal late yesterday + <unk> co. <unk> electronics manufacturer annual sales $ N million nyse minor damage to headquarters and plant in palo alto no damage to san jose plant still assessing damage at <unk> valley plant where main product is <unk> for semiconductor production + wells fargo & co. san francisco bank holding company annual revenue $ N billion nyse minor damage at headquarters N branches out of N in northern california sustained structural damage that will preclude them from opening in the near future N locations with at least one automatic teller machine <unk> central computer systems are operating no injuries + <unk> technology inc. san jose maker of video display terminals and workstations and <unk> compatible computers annual sales of $ N million slight structural damage at headquarters no injuries expects to be back to full operation today + <unk> corp. santa clara maker of computer communications systems annual sales of $ N million otc slight structural damage to headquarters communications systems already fully operational + could the collapse of <unk> have been prevented + that was the question structural engineers and california transportation officials were asking themselves yesterday as rescue workers began the <unk> task of trying to extract as many as N victims from beneath the concrete <unk> of the <unk> nimitz freeway in oakland that <unk> in during tuesday 's temblor + after <unk> the area california gov. george deukmejian late yesterday called for an inquiry into the freeway 's collapse blaming the disaster on <unk> construction the associated press reported + the impact of the destruction of this <unk> stretch of highway was <unk> measured in lost lives + but there are other long-term effects that raise serious questions about the ability of california 's infrastructure to withstand a major temblor + it could easily be two years before the <unk> artery that helps <unk> oakland with san francisco is reopened and the cost to build a new stretch of highway could soar to more than $ N million said charles j. o'connell deputy district director in los angeles of the california department of transportation <unk> caltrans + caltrans in sacramento said total damage from the collapsed highway is estimated at around $ N million + the aftershocks of the highway tragedy are <unk> in los angeles as well as local politicians spoke yesterday against plans to bring <unk> to los angeles freeways by N + caltrans plans to add a second deck for buses and car pools above the median of a <unk> stretch of the harbor freeway just south of los angeles near the <unk> <unk> + los angeles county supervisor kenneth hahn yesterday vowed to fight the introduction of <unk> in the area + caltrans abandoned <unk> in the early 1970s following the N <unk> earthquake that destroyed freeway sections just north of los angeles mr. o'connell explained + that temblor measured N on the richter scale tuesday 's was + so why even consider <unk> freeways now + we 've run out of places to build freeways in l.a. and the only place to go is up mr. o'connell said although he acknowledges there are many obstacles including cost + but as for safety he says <unk> freeways built today with the heavily reinforced concrete and <unk> columns required after the <unk> quake should withstand a <unk> temblor of N to N on the richter scale + reasons for the collapse of the nimitz freeway were <unk> yesterday + but most structural engineers attributed the destruction to improper reinforcement of the columns that supported the <unk> and the fact that the ground beneath the highway is largely landfill and can become unstable or <unk> in a major quake + the <unk> roadway designed in the <unk> and completed in N was supported by columns that apparently lacked the kind of steel reinforcement used in highways today + while the <unk> did have long metal bars running <unk> through them for reinforcement they apparently lacked an adequate number of metal ties that run <unk> through the column said leo parker a structural engineer in los angeles + caltrans today uses a <unk> of the design mr. parker describes with <unk> steel <unk> inside + but in the case of the nimitz freeway the lack of such support caused the core of the columns to <unk> and buckle under the weight of the second deck <unk> <unk> who were lined up in <unk> <unk> traffic on the lower deck nearly N feet below + officials of the state agency did n't have any immediate explanation why the reinforcement did n't hold up + caltrans reinforced the highway in N as part of a $ N million statewide project using steel <unk> to tie the <unk> of the freeway to the columns and prevent the structure from <unk> in a quake + caltrans spokesman jim <unk> in sacramento declined to identify the engineering firm that did the reinforcement work + liability in the bridge and road <unk> will <unk> around whether government took reasonable care to build and maintain the structures says john <unk> a <unk> wash. personal-injury attorney who specializes in highway design and maintenance cases + the firm brought in to strengthen the structure could be liable as well + the results of the quake certainly raise questions about whether reasonable care was taken mr. <unk> says + given the seismic history of the bay area it seems to me that a N earthquake is a foreseeable event + caltrans ' mr. <unk> defended the agency 's work on the nimitz freeway + the work was done properly he said + basically we had a severe earthquake of significant <unk> and it was just something the structure could n't withstand + ironically caltrans this year began working on a second round of seismic <unk> of freeways around the state this time <unk> freeway columns in steel <unk> to reinforce them + but only bridges supported with single rows of columns were top priority and the nimitz freeway supported by double rows was left out mr. <unk> explained + the reason is that the technology is such that we 're not able to <unk> <unk> structures he said + charles <unk> in san francisco and john r. <unk> in los angeles contributed to this article + lionel corp. 's board unanimously rejected a tender offer of $ N a share or $ N million for as much as N N of lionel by a group with a N N stake in the toy retailer + lionel also urged holders of its stock and debt not to tender their securities saying it wants to remain independent to pursue its business strategy + lionel also said the offer by robert i. <unk> limited partnership is inadequate and full of conditions that leave it subject to substantial uncertainty + in addition lionel began a lawsuit in federal district court in new york seeking to <unk> the offer alleging among other things violations of federal securities law and fraudulent manipulation of the market for lionel 's securities + robert i. <unk> general partner of the investment group said the lionel response reflected management 's entrenched position saying officials had failed to come up with a better alternative to his group 's offer + mr. <unk> said he would respond to lionel 's suit after his lawyers review it + efforts by a federal mediator to <unk> talks between boeing co. and the machinists union apparently failed and no further meetings are scheduled + company officials and union representatives did n't meet face to face but the mediator <unk> between the two groups + in a statement issued after the meeting the aerospace giant said it wo n't increase its offer although adjustments within the proposed <unk> mix are possible + machinists already have rejected a proposal that called for a N N pay increase and N N bonus in the first year + in the second year workers would receive a N N wage boost and a N N bonus followed by a N N increase without a bonus in the third year + the company will not <unk> on anything said a spokesman for the union + as the strike enters its <unk> day today some members are getting nervous the spokesman conceded but the majority of the N machinists are prepared to wait it out as long as it takes + united merchants & manufacturers inc. said its president <unk> <unk> withdrew his proposal to acquire control of the new york textile and clothing company + last month mr. <unk> proposed among other things to buy N million shares or N N for $ N apiece + coupled with his current N million shares and N N held by an associate the stake would have given him control of N N of the concern + in a securities and exchange commission filing mr. <unk> had said that holders of the other N N of united merchants would receive one-half share of a new preferred stock for each of their shares + a special committee of united merchants directors said that in view of uncertainties regarding various legal and financial considerations it could n't recommend the plan to the full board + the company is exploring with a major financial institution the development of a plan to boost the value of the company for its holders mr. <unk> said + in a separate sec filing albert safer who holds N N of united merchants said he retained investment bank lazard <unk> & co. for advice as he <unk> the possibility of making a bid for the textile maker + on friday mr. safer a newark n.j. textile businessman signed a <unk> agreement under which united merchants would provide him with <unk> information + the white house is making sure nobody will accuse it of taking this crisis <unk> + in the aftermath of the california earthquake president bush and his aides flew into a <unk> of earthquake-related activity yesterday morning + some of it was necessary to get federal help flowing to victims but some seemed designed mostly to project an image of a white house in action + mr. bush and his aides were accused of responding too slowly after the exxon <unk> oil tanker split open in alaskan waters and hurricane hugo struck the carolina coast and they clearly do n't want a repeat of those charges now + so the white house announced that mr. bush got his first earthquake briefing of the day at N a.m. from chief of staff john <unk> + by noon mr. bush had taken two phone calls from vice president dan quayle who was in california made a televised statement of concern signed a disaster <unk> received a written report from the federal emergency management agency and visited fema headquarters + mr. bush himself essentially acknowledged that he and his aides were trying to head off criticism + on his fema visit mr. bush said that he hoped there would be less <unk> about the emergency office 's performance this time adding that the agency took a hit for its reaction to hurricane hugo + the white house already is talking of mr. bush visiting the california earthquake site this weekend + he visited the hugo devastation but not until after local leaders urged him to do so + <unk> plc a major british building materials and construction concern reported a N N jump in pretax profit for its latest financial year helped largely by contributions from its u.s. unit <unk> co + pretax profit for the year to june N rose to # N million $ N million from # N million $ N million broadly matching analysts ' expectations + profit after taxes and minority interests but before extraordinary items increased N N to # N million from # N million a year earlier while fully diluted earnings per share rose to N pence N cents from N pence N cents + the <unk> <unk> that <unk> the san francisco bay area rated a N on the richter scale did n't match the great earthquake of N rated at N + the difference of just N points on the scale designed by charles richter of <unk> in the 1930s means the older quake was N to N times stronger says lane johnson director of the university of california berkeley <unk> station + the ground <unk> along a <unk> stretch of the san andreas fault on tuesday mr. johnson added + in N the <unk> was N miles long and a couple feet wide + though the epicenter of tuesday 's temblor was located N miles north of the town of santa cruz and N miles south of san francisco its havoc <unk> up the coast in seemingly random fashion + but the greatest damage was visited on buildings and roadways <unk> upon landfill as were the marina district of san francisco and the bay bridge two areas of maximum devastation + landfill loose and unconsolidated earth may feel like rock but it <unk> like liquid when you shake it said douglas <unk> professor of <unk> at san francisco state university in a televised interview + it <unk> in a <unk> <unk> pattern + our quake behaved much like the mexico city earthquake where great damage was miles from the epicenter + mr. johnson of the berkeley <unk> station said landfill can be done if it 's properly <unk> + you can drive <unk> on it and build on it + he cited the example of san francisco 's financial district where many new glass towers survived almost <unk> + but the public policy issues raised by earthquake damage will be difficult to address mr. johnson predicted + the attention span of the public is short he said + we 've known for years and years we 've got lots of old <unk> <unk> brick and <unk> buildings + one old building the golden state bank building on front street had its yellow brick <unk> <unk> off by the shock of the quake leaving a wedge of its third floor open to the air while <unk> of dusty bricks tumbled to the street below narrowly missing <unk> <unk> and cars + reinforcing such old building stock mr. johnson said comes down to money + it 's a danger + we know it 's there + and sooner or later we have to do something about it + the urgency is heightened because this week 's earthquake while major and followed by hundreds of aftershocks did n't release enough <unk> energy tension along the <unk> to preclude more and bigger <unk> soon + the big one is still due mr. johnson predicted in an interview + the bay area has three very dangerous <unk> the san andreas the <unk> fault and the <unk> fault + it tuesday 's quake has n't solved our problem + in california this is the reality + coca-cola co. may be about to intensify the <unk> wars + coke said it will test market a caffeine-free version of its flagship brand coca-cola classic beginning next week in charlotte n.c + other as yet <unk> cities will follow + if all goes well the product will be rolled out for national sales sometime next year a coke spokesman said + after the confusion surrounding the change of the coke formula in N coca-cola was reluctant to clutter the classic name with a brand extension + but now the soft-drink giant appears willing to take the risk + the name classic coke has tremendous value and they have n't <unk> that name before says <unk> <unk> publisher of the trade journal beverage digest + the coke spokesman said a caffeine-free classic should help increase volume of the original brand + indeed analysts have said that the absence of new products among other factors has limited sales growth throughout the industry + coke now leads pepsi in market share in caffeine-free diet <unk> but trails pepsi in sales of caffeine-free <unk> <unk> according to beverage digest + coke introduced a caffeine-free <unk> <unk> based on its original formula in N + it switched to a caffeine-free formula using its new coke in N + coke has been studying the possibility of introducing a caffeine-free classic for a year a company spokesman said + he said large increases in sales of other <unk> soft drinks make the timing right now + california struggled with the aftermath of a bay area earthquake + as aftershocks shook the san francisco bay area <unk> searched through rubble for <unk> of tuesday 's temblor and residents picked their way through <unk> streets + in oakland hopes faded for finding any more <unk> within the concrete and steel from the collapse of an interstate highway + at least N people were reported killed and N injured in the <unk> tremor that caused billions of dollars of damage along N miles of the san andreas fault + bush declared the region a major disaster area and the military was <unk> to prevent <unk> + the baseball commissioner said the third game of the world series between the giants and the athletics would be played tuesday in candlestick park + honecker was ousted as leader of east germany amid growing unrest + the <unk> official who <unk> the building of the berlin wall was removed during a meeting of the <unk> communist party central committee in east berlin + honecker who was reported ill following <unk> surgery in august said he was resigning for health reasons + he was succeeded by <unk> chief egon krenz N a <unk> who quickly ruled out any sharing of power with pro-democracy groups + honecker 's departure came after weeks of street protests and an exodus to the west of east germans who had become <unk> with his rule + hungary adopted constitutional changes to form a democratic system + at a nationally televised legislative session in <unk> the parliament <unk> approved changes formally ending <unk> domination in the country <unk> free elections by next summer and establishing the office of state president to replace a <unk> council + the country was renamed the republic of hungary + like other soviet bloc nations it had been known as a people 's republic since + the voting for new laws followed <unk> of hungary 's communist party this month and its replacement by a western-style socialist party + the space shuttle atlantis <unk> into <unk> from <unk> <unk> fla. and its crew of five <unk> launched the <unk> galileo space probe on a flight to the planet jupiter + the $ N billion robot spacecraft 's <unk> mission is to take six years + the shuttle is slated to return monday to california + south korea 's president roh addressed a joint house-senate meeting and urged patience over u.s. demands for the opening of seoul 's markets to more american goods saying trade issues would be resolved to mutual satisfaction + he also said <unk> results could follow any hint of weakening of the u.s. defense commitment to seoul + the census bureau reported that N N of the u.s. population or N million people were living in poverty in N + last year 's figure was down from N N in N and marked the fifth consecutive annual decline in the poverty rate + per capita income rose N N to $ N but median family income fell N N + the bush administration accused israeli prime minister shamir of <unk> peace efforts in the mideast with <unk> and disappointing statements + shamir said tuesday that he was prepared to risk a policy conflict with the u.s. over an egyptian plan to hold direct <unk> talks which the premier 's <unk> bloc opposes + cuba was elected to the u.n. security council for the first time since its <unk> revolution N years ago + the election was by secret ballot in the general assembly + the u.s. did n't openly oppose cuba 's <unk> as the latin american council delegate + britain 's prime minister thatcher told a commonwealth summit in kuala lumpur malaysia that sanctions against south africa were utterly irresponsible officials said + but other nations at the opening of the <unk> meeting of britain and its former <unk> pressed for continued or stronger <unk> in an effort to end apartheid + arab officials in saudi arabia said <unk> talks by <unk> lawmakers aimed at ending lebanon 's civil war appeared about to collapse + christian legislators are insisting on a syrian troop pullout from lebanon before agreeing to political changes giving the nation 's <unk> a greater role in <unk> 's government + colombia 's judges launched a <unk> strike to press security demands following tuesday 's murder of a high court justice in <unk> + the country 's narcotics traffickers claimed responsibility for the <unk> + most of the country 's N judges and judicial employees joined the work <unk> + charles s. mitchell a vice president with <unk> development co. the real estate development subsidiary of sears roebuck & co. was named president of <unk> properties a real estate development unit + he succeeds william <unk> who resigned earlier this year + also richard a. <unk> a former marketing executive with <unk> corp. was appointed president of continental container systems a producer of can closing machinery that <unk> acquired late last year + <unk> is a fire protection electronics and industrial products concern + dow chemical co. said third-quarter net income slipped N N from a record year-ago quarter + the decline broke a streak of N quarters in which dow posted earnings increases + dow 's third-quarter net fell to $ N million or $ N a share from $ N million or $ N a share a year ago + sales in the latest quarter rose N N to $ N billion from $ N billion a year earlier + dow closed at $ N a share up N cents in new york stock exchange composite trading + a spokeswoman said dow is comfortable with wall street expectations that full-year earnings will total about $ N a share compared with last year 's record net of $ N billion or $ N a share + but that signal on full-year profit <unk> doubt on whether dow will improve on its year-ago fourth-quarter net of $ N a share or $ N million + dow would earn $ N a share for the year if it <unk> that year-ago fourth-quarter performance + dow officials were <unk> that the company would earn less than $ N a share this year even before they announced in july a plan to acquire N N of <unk> laboratories inc + that acquisition could further <unk> earnings per share this year the company spokeswoman said + dow has n't said exactly what impact the <unk> acquisition will have on N earnings + dow blamed the third-quarter earnings drop on several factors including softer prices for polyethylene and other basic chemicals a slower u.s. economy and a stronger dollar which made dow 's exports from the u.s. more expensive to overseas customers + another problem was a N N increase in operating costs at a time when revenue was rising by only N N + for the first nine months of the year dow earned $ N billion or $ N a share up N N from $ N billion or $ N a share a year ago + sales for the latest nine months rose N N to $ N billion from $ N billion in the year-ago period + whether or not great cases make <unk> as justice holmes asserted who can doubt that when great confirmation hearings turn on the <unk> 's response to these great cases they make bad judicial history + <unk> bronner 's battle for justice how the bork nomination shook america norton N pages $ N is a <unk> <unk> of the <unk> of these hearings done with <unk> <unk> but with a flawed legal philosophy + while the book <unk> justifies its <unk> the title itself is dubious + what shook america was not a battle for justice but for naked power in which an army of judicial activists rolled over a judge they had <unk> + in its basic structure and style the book is <unk> with <unk> character portrayal <unk> action and <unk> <unk> of the sort more likely to be encountered in a washington <unk> than in a constitutional history + mr. bronner seems to believe that the hearings could have gone either way + i doubt that + given democratic frustration with the reagan victories and court appointments the <unk> plans in place and mr. bork 's paper trail of vulnerable <unk> it was pretty clear that judge bork never stood much chance of being confirmed + as mr. bronner himself says the <unk> of raw meat was in the air + perhaps because they won mr. bork 's <unk> come through more <unk> than his defenders + ralph <unk> was the organizing <unk> <unk> a conglomerate of pressure groups into an <unk> attacking force + harvard 's laurence tribe was the constitutional heavy laying out legal strategies for the senators and witnesses to follow + but it was ted kennedy who scored most effectively with his <unk> portrayal of robert bork 's america the parade of <unk> <unk> that would follow <unk> he claimed from the positions mr. bork had taken over the space of two decades + sen. kennedy never mind his dubious credentials for the moral high ground <unk> <unk> + i add two others + republican sen. <unk> specter of pennsylvania engaged the <unk> in a <unk> contest aimed at showing that mr. bork was willing to stretch the constitution in one area free speech while remaining rigid in all the others + it achieved a good media play and enabled sen. specter and others to vote against mr. bork out of <unk> + further <unk> came from left legal <unk> ronald <unk> who in the new york review of books painted a picture of a constitutional <unk> <unk> reading his personal <unk> into the constitution particularly in the area of original intent + the charge of being outside the mainstream of legal thought <unk> undercut mr. bork 's <unk> standing leaving him bleeding on the platform + the nomination still might have been <unk> if a number of democratic <unk> in the south and southwest had broken party lines + but democratic sen. bennett johnson of louisiana reminded the little band that <unk> blacks and women could <unk> the margin to punish them in their next senate elections + <unk> <unk> with mainstream and <unk> to seal robert bork 's fate + the <unk> + mr. bork 's opponents chose the <unk> held it and kept it + yet with the smooth confirmation of anthony kennedy an N <unk> only slightly less supportive of judicial restraint than mr. bork the democrats may have won the battle but lost the war + another <unk> however was the <unk> message the bork hearings sent into the judicial culture from which the supreme court draws its talent + the word went forth to every law school that those with federal court ambitions must travel a safe constitutional <unk> with no paper trail and no <unk> to their <unk> or <unk> + unfortunately the author simply does n't supply the <unk> frame to sustain his <unk> <unk> + he has too readily <unk> the case for the activist law school culture + probing more deeply into the doctrine of judicial restraint he would have found a long history going back to the great decisions of justice holmes + he would discover it also in alexander <unk> a <unk> constitutional scholar mr. bork 's <unk> friend at yale whose influence on the judge goes well beyond mr. bronner 's reporting + still the long view of robert bork as constitutional <unk> must be a <unk> one + his strength lies in his <unk> doctrine which keeps the court clear of <unk> group pressures and leaves most decisions in a democracy to elected legislatures and executives + unfortunately mr. bork failed to <unk> between such pressures and the emergence of great issues critical to a society that must be settled <unk> if it is to <unk> + the question of <unk> schools in brown vs. board of education was such an issue + in our time abortion has become another best left to a line of supreme court decisions rather than to the chaos of N state legislatures + a <unk> and growing consensus of americans clearly wishes to apply the right to privacy in contraceptive matters decided in the <unk> case to abortion as well + one can understand mr. bork 's fear that the new right to privacy will become <unk> stretched though a supreme court composed of men and women with <unk> <unk> and a sense of limits should be able to manage it + what is certain is that if americans allow another happening like the <unk> bork confirmation circus it will be at their <unk> + mr. <unk> is a writer and <unk> living in new york + sotheby 's inc. the world 's biggest auction house is taking a huge wall <unk> risk on the outcome of the sale of art from the estate of john t. dorrance jr. the campbell soup co. heir + the financial services division has guaranteed the dorrance family that it will receive a minimum of $ N million for the collection regardless of what the bids for the art works total people close to the transaction say + the collection which includes two early <unk> a van <unk> a <unk> other paintings furniture and <unk> went on sale last night in the first of six auctions + what sotheby 's is doing closely resembles an underwriting by an investment bank + a corporation that wants to sell stock or bonds goes to a wall street firm which purchases the securities outright accepting the financial risk of finding buyers + if the investment bank can sell the securities at a higher price than it paid the issuer it makes a profit + at the initial sale last night for example the sale featuring the <unk> masters bids totaled $ N million + that was slightly above sotheby 's <unk> estimate of $ N million + normally sotheby 's would have earned N N of the total in commissions + instead people familiar with the transaction said the auction house opted to <unk> that percentage in order to obtain the collection and in exchange for taking a bigger chunk of proceeds exceeding $ N million + art dealers say that while auction houses occasionally guarantee the seller of a highly desirable work of art a minimum price a financial commitment of this size is unprecedented + <unk> d. brooks president of sotheby 's north america division <unk> denies it offered the dorrance <unk> a <unk> guarantee calling such reports inaccurate + buried in the glossy <unk> catalog for the sale however appears the statement sotheby 's has an interest in the property in this catalog + explains a sotheby 's spokeswoman the statement means exactly what it says + we have some level of financial interest in the collection + we do n't disclose <unk> + frank <unk> a lawyer for the dorrance estate with the philadelphia law firm of morgan lewis & <unk> declines to comment on the financial arrangements + sotheby 's made the $ N million guarantee to keep the dorrance collection away from its archrival auction house christie 's international plc christie 's has handled smaller sales for the dorrance family over the years + when christie 's officials asked why the firm was n't picked to sell the dorrance collection representatives of the dorrance family told us it was a question of financial considerations said michael <unk> christie 's head of <unk> and modern paintings + collectors who have made their money on wall street have become an increasingly important part of the art business and their money has helped fuel the art boom but recently it appears sotheby 's has been returning the <unk> + in november N sotheby 's essentially offered a wall <unk> bridge loan of about $ N million to australian businessman alan bond to enable him to purchase vincent van <unk> 's <unk> for $ N million + it was the highest bid in history for a work of art + but two weeks ago sotheby 's said that it has the painting under lock and key because the loan had not been fully repaid + sotheby 's is offering such deals because it 's an art sellers ' market at least where the best works are concerned says ralph <unk> an attorney and author of the book art law + there seems to be a lot of art for sale but there 's more competition + the competition gives the seller the ability to cut a better deal he says + the dorrance family will still receive a substantial portion of the auction proceeds above $ N million people familiar with the transaction said + but it 's likely that sotheby 's will take a higher than usual commission called an override on the amount exceeding the guarantee + sotheby 's has been aggressively promoting the dorrance sale + at a news conference last may announcing plans for the auction sotheby 's estimated its value in excess of $ N million + more recently sotheby 's has predicted the collection will fetch $ N million + that 's the highest estimate for a single collection in auction history + the decision to put the entire collection on the block stunned many since mr. dorrance had served as chairman of the philadelphia museum of art and it had been assumed many of the works would be donated to the institution + at last night 's sale N of N works that sold were purchased by <unk> international gallery the <unk> unit of aichi financial a japanese conglomerate that owns N N of christie 's + meanwhile sotheby 's guarantee is raising <unk> in the art world + the consumer has to throw out the idea that the auction house is a <unk> <unk> says new york art dealer david <unk> + while he adds that he has no problem with auction houses who sell works in which they have a financial interest it ought not to be hidden in some small print + in such situations he says the house is going to put the best light on things + for example an auction house 's comments on the condition of a work of art that is up for sale should be looked at with very open eyes he says + there 's more and more of this <unk> going on at every level says bruce miller president of art funding corp. an art lender + dealers and auction houses know if they do n't lay out a half a million for this another one will it 's that competitive + in january two small new york <unk> the <unk> <unk> gallery and <unk> fine arts <unk> a major art collection owned by the <unk> family away from rival <unk> bidders with an <unk> payment of about $ N million + a christie 's spokeswoman said that while the auction house sometimes <unk> its seller 's commission to attract art works it still gets a commission from the buyer christie 's wo n't offer financial guarantees because christie 's believes its primary role is as an auction house and therefore as an agent for buyer and seller not as a bank + egon krenz the man tapped yesterday to become east germany 's new leader faces the same task that has fallen to neighboring socialist colleagues <unk> a country in crisis + but unlike the other new leaders in the east bloc mr. krenz will face an immediate threat to his nation 's very existence german reunification + mr. krenz age N is known as an <unk> <unk> one likely to continue the method of running a country that the berlin wall made famous + even if he were to change his <unk> and become another milton <unk> however he would still stand a good chance of losing a country + mr. krenz almost certainly will be a younger version of erich honecker his rigid predecessor as dictator + mr. krenz has followed much the same career path as mr. honecker both spent years overseeing the <unk> deutsche <unk> the youth group that is the communist regime 's principal tool for <unk> young germans into socialist citizens + more recently mr. krenz has been in charge of east german security and is the youngest member of the ruling politburo + faced with another mr. honecker so many <unk> east germans are likely to <unk> that the two german peoples will get their reunification de <unk> on west german ground + but if east germany 's <unk> politburo does loosen up enough to permit mr. krenz to make serious efforts at reform he will face a challenge just as fundamental + abandoning socialism means abandoning the east german state 's reason for existence and with it the <unk> for its <unk> and its wall + in this scenario it 's hard to imagine that a pale <unk> of the federal republic could avoid being pulled into some kind of tie economic federal or stronger with west germany + mr. krenz may need a bit of time to consolidate his empire which would do a lot to promote reunification scenario one + <unk> in west germany have already <unk> the exodus by <unk> an <unk> placed by mr. honecker wanted one people + the west german <unk> in <unk> <unk> and warsaw are continuing to find refugees at their gates + of course east germany true to its tradition could tighten its borders yet further + two of the last gestures of the honecker regime were to close the border to czechoslovakia and install <unk> lights in some spots along the <unk> + but with world-wide opinion even apparently in moscow against east germany the country would have to turn itself into an <unk> to <unk> down further on refugees + there have been some reports that mr. krenz is moving to soften his reputation notably rumors that it was he who kept east germany 's state police off protesters ' backs at the country 's dismal <unk> anniversary <unk> earlier this month + but even if he effects a <unk> <unk> he will face a serious ideological crisis and reunification scenario two + the problem is one that east germany shares with other <unk> such as north korea but one it must shoulder alone in the east bloc + when poland moves to reform it can at least lean on its past however flawed and short-lived joseph <unk> 's <unk> republic it was a <unk> democracy + <unk> reformers can recall the <unk> <unk> of the same period in their country + even the soviet union has peter the great to <unk> should it choose to + but east germany is merely the land of truly existing socialism + beyond that it has to compete with west germany for a claim to the german identity + up to now the main weapon of the worker and peasant state has been the <unk> of socialism + with talk today of a second economic <unk> in west germany east germany no longer can content itself with being the economic star in a loser league + without moscow 's military and party behind it east germany runs the risk of <unk> + if it goes capitalist and increases trade with west germany it will convert itself <unk> into an economic <unk> of the federal republic + there 's a certain <unk> logic at work here it 's particularly appropriate and <unk> that the land that produced <unk> <unk> should prove socialism 's failure in an experiment that uses its own people as controls + there may be forces that would delay this scenario + <unk> are the last to surrender and germans are an ideological people + the protesters who greeted mikhail gorbachev at east berlin 's airport earlier this month were n't shouting go u.s.a they were <unk> <unk> help us + <unk> on the other side of the border can also slow the process + helmut kohl 's governing conservative coalition is proving <unk> true to the west german constitution by making more than N people of german <unk> automatic citizens this year alone + but within the government and in the think tanks outside it many west germans maintain that they do n't want immediate reunification + politically this currently is wisdom particularly given a nervous neighboring france + but it would be ironic if germany 's reunification just like its division eventually were the result of actions in centers of power other than bonn and berlin + in a statement that was as close as east germany gets to practicing glasnost <unk> <unk> an east german party <unk> actually acknowledged the reunification dilemma + the main problem mr. <unk> said in an east german radio interview monitored by radio free europe in <unk> stems from the fact that the <unk> is different from other east european states + what kind of right to exist he asked would a capitalist german democratic republic have alongside a capitalist federal republic + that 's a question east germany ca n't answer easily no matter what its new leader does + miss <unk> is editorial features editor of the wall street <unk> + insurers are facing billions of dollars in damage claims from the california quake + but most businesses in the bay area including silicon valley were n't greatly affected + computer and software companies in the region are expecting virtually no long-term disruption in shipments + also investors quickly singled out stocks of companies expected to profit or suffer from the disaster + leveraged buy-outs may be <unk> by two rules in pending congressional legislation + the provisions in deficit-reduction bills recently passed by the house and senate could raise the price <unk> of such deals by up to N N and cool the takeover boom + a bill giving the transportation department the power to block airline leveraged buy-outs cleared a house panel + but secretary skinner said he would urge bush to veto the bill + housing starts sank N N in september to a seven-year low + the drop following a N N decline in august indicates the industry is still being hurt by the fed 's <unk> battle + ibm plans to buy back $ N billion of its common shares a move likely to help the computer giant 's battered stock + the buy-back which was n't a complete surprise was announced after the stock market had closed + a capital-gains tax cut plan has been worked out by senate republicans + a similar proposal may be introduced soon by senate democrats + british airways said it is seeking improved terms and a sharply lower price in any revised bid for united air 's parent + the british carrier also confirmed it is n't committed to going forward with any new bid + ual 's stock fell $ N to $ N + stock prices rose slightly as trading slowed while bonds ended little changed despite a <unk> dollar + the dow jones industrials gained N to N + but investors remain wary about stocks partly because of turmoil in the junk-bond market + b.a.t industries may delay part of its defensive restructuring plan including the sale of its saks fifth avenue and marshall field units + the british conglomerate cited the recent turmoil in financial markets + wcrs group announced a major restructuring that largely <unk> it from the advertising business + the london-based concern will sell most of its ad unit to france 's eurocom + commodore international expects to post its second consecutive quarterly loss because of weak personal computer sales in some markets + jaguar hopes to reach a friendly accord with general motors within a month that may involve producing a cheaper executive model + sears is negotiating to <unk> its sears tower for close to $ N million sources said + the retailer was unable to find a buyer for the building + whitbread of britain put its spirits division up for sale setting off a scramble among <unk> + the business includes beefeater gin + markets + stocks volume N shares + dow jones industrials N up N transportation N off N utilities N off N + bonds shearson lehman hutton treasury index N off + commodities dow jones futures index N up N spot index N up N + dollar N yen off N N marks off N + the dollar finished softer yesterday <unk> lower by continued concern about the stock market + we 're trading with a very wary eye on wall street said <unk> <unk> chief corporate trader at harris trust & savings bank in new york + no one is willing to place a firm bet that the stock market wo n't take another tumultuous ride + news of the major earthquake in california tuesday triggered a round of dollar sales in early asian trade but most foreign-exchange dealers said they expect the impact of the quake on financial markets to be short-lived + despite the dollar 's lackluster performance some foreign-exchange traders maintain that the u.s. unit remains relatively well bid + harris trust 's mr. <unk> noted that the unit continues to show resilience in the face of a <unk> of headline <unk> in recent weeks including rate increases in europe and japan aggressive central bank intervention a 190-point plunge in new york stock prices an unexpectedly poor u.s. trade report and action by the federal reserve to <unk> u.s. rates lower + while mr. <unk> does n't predict a significant climb for the u.s. unit in light of recent moves in interest rates around the world he noted that its downside potential is surprisingly and for dollar bulls <unk> limited + in late new york trading yesterday the dollar was quoted at N marks down from N marks late tuesday and at N yen down from N yen late tuesday + sterling was quoted at $ N up from $ N late tuesday + in tokyo thursday the u.s. currency opened for trading at N yen down from wednesday 's tokyo close of N yen + since friday 's dive in stock market prices the fed has <unk> reserves into the banking system in an effort to calm the markets and <unk> a repeat of N 's stock market debacle + some analysts note that after last week 's stock market tailspin and tuesday 's california earthquake it 's hard to gauge where the central bank wants the key federal funds rate + they say that the earthquake by preventing many banks from operating at full capacity has given the fed an additional reason to keep liquidity at a high level + the fed did in fact execute $ N billion of <unk> customer repurchase agreements the third set of repurchase orders in three days + analysts said the additional liquidity should tend to reduce the federal funds rate + for now traders say the foreign exchange market is <unk> both federal funds and events on wall street + they note that the dollar remains extremely vulnerable to the <unk> bad news from the stock exchange + indeed the u.s. unit edged lower as the dow jones industrial average dropped about N points in early trading + a slight recovery in the stock market gave currency traders confidence to push the dollar higher before the unit dropped back by day 's end + some dealers noted that nervousness over the recent sharp dive in stock prices could intensify following suggestions by bank of japan governor <unk> <unk> that appeared to advise japanese investors to be very careful in investing in u.s. leveraged buy-outs + dealers suggest that the only positive news on the horizon that could <unk> attention from equities transactions is september 's u.s. consumer price data + the figures due for release friday are expected to show an uptick in inflation to N N from N N in august + if the figures show a hefty rise in inflation they could <unk> against easing by the fed + on the commodity exchange in new york gold for current delivery rose $ N to $ N an ounce in moderate trading + estimated volume was three million ounces + in early trading in hong kong thursday gold was at $ N an ounce + crude prices <unk> upward in brisk trading on the assumption that heavy earthquake damage occurred to san francisco area refinery <unk> but the rise quickly <unk> when it became apparent that oil operations were n't severely curtailed + trading on little specific information market players overnight in tokyo began bidding up oil prices + the rally spread into european markets where traders were still betting that the earthquake disrupted the san francisco area 's large oil refining plants + by yesterday morning much of the world was still unable to reach san francisco by telephone + west texas intermediate was bid up more than N cents a barrel in many overseas markets + at the opening of the new york mercantile exchange west texas intermediate for november delivery shot up N cents a barrel to $ N still on the belief that the refineries were damaged + in the san francisco area roughly N barrels a day of crude about a third of all the refining capacity in california is processed daily according to industry data + for more than the past year even the rumor of a major west coast refinery shutdown has been enough to spark a futures rally because the gasoline market is so tight + but yesterday as the morning wore on some major west coast refinery operators including chevron corp. exxon corp. and the shell oil co. unit of royal <unk> group said their refineries were n't damaged and were continuing to operate normally + most said they shut down their petroleum pipeline operations as a <unk> but did n't see any immediate damage + gasoline terminals were also largely <unk> they said + it 's hard to imagine how the markets were <unk> given that nobody could get through to san francisco said one <unk> oil company executive + as the news spread that the refineries were intact crude prices plunged ending the day at $ N a barrel down N cents + gasoline for november delivery was off N cents a <unk> to N cents + heating oil finished at N cents down N cent + the market was basically acting on two <unk> forces said <unk> <unk> of shearson lehman hutton inc + one is the panic the earthquake in san francisco which is positive + but once that factor was eliminated traders took profits and focused on crude oil inventories mr. <unk> said + after the market closed tuesday the american petroleum institute had reported that crude stocks increased by N million barrels in the week ended friday which traders viewed as bearish + but some market players still think earthquake speculation could have more impact on the oil markets + the problem is that while on the surface everything is all right the question is said mr. <unk> was there any structural damage to the pipelines or anything else + in other commodity markets yesterday + copper + futures prices eased on indications of improvement in the industry 's labor situation + the december contract declined N cents a pound to $ N + according to one analyst workers at the cananea copper mine in mexico which has n't been operating since it was declared bankrupt by the mexican government in late august are set to return to work + the analyst said it will take about two to three months before the mine begins to produce copper in significant quantities + he added that while there has n't been any official announcement as yet the highland valley mine strike in british columbia which has lasted more than three months is regarded as settled + another analyst said the cananea return to operation may not be as near as some expect + there are still negotiations taking place on whether there will be a loss of jobs which has been a critical issue all along he said + nevertheless the increasing likelihood that these two major supply disruptions will be resolved weighed on the market the analysts agreed + both of these mines are normally major suppliers of copper to japan which has been buying copper on the world market + the first analyst said that the japanese as well as the chinese bought copper earlier in the week in london but that this purchasing has since <unk> as the supply situation at least over the long term appears to have improved + the focus for some time has been on the copper supply and good demand has been taken for granted he said + now that the supply situation seems to be improving it would be best for traders to switch their concentration to the demand side + he noted the commerce department report yesterday that housing starts in september dropped N N from august to N million units on an annualized basis the lowest level in seven years + along with these factors other economic reports suggest a slowing of the economy which could mean reduced copper usage he said + sugar + futures prices extended tuesday 's gains + the march delivery ended with an advance of N cent a pound to N cents for a two-day gain of N cent + according to one dealer japan said it has only N tons of sugar remaining to be shipped to it this year by cuba under current commitments + the announcement was made because of reports tuesday that cuba would delay shipments to japan scheduled for later this year into early next year + the dealer said the quantity mentioned in the japanese announcement is so small that it 's <unk> + one analyst said he thought the market continued to be supported to some degree by a delay in the cuban sugar harvest caused by adverse weather + the dealer said india might be the real factor that is keeping futures prices firm + that country recently bought N tons of sugar and had been expected to seek a like quantity last week but did n't + it 's known they need the sugar and the expectation that they will come in is apparently giving the market its principal support the dealer said + livestock and <unk> + the agriculture department is expected to announce tomorrow that the number of cattle in the N major ranch states slipped N N to N million on oct. N compared with the level a year earlier said tom morgan president of sterling research corp. <unk> heights ill + cattle prices have risen in recent weeks on speculation that the government 's quarterly report will signal tighter supplies of beef + among other things the government is expected to report that the number of young cattle placed on feedlots during the quarter slipped N N + feedlots <unk> cattle for <unk> so a drop indicates that the production of beef will dip this winter + indeed some analysts expect the government to report that the movement of young cattle onto feedlots in the month of september in seven big ranch states dropped N N compared with the level for september N + the following issues were recently filed with the securities and exchange commission + health care property investors inc. offering of N shares of common stock via merrill lynch capital markets alex brown & sons inc. and dean witter reynolds inc + union pacific corp. shelf offering of up to $ N million debt securities and warrants + united technologies corp. shelf offering of up to $ N million <unk> <unk> unsecured debt securities + a new drug to prevent the rejection of <unk> <unk> has been successfully used on more than N patients at the university of pittsburgh according to researchers + the drug which is still in the experimental phase has n't been approved yet by the food and drug <unk> and its long-term effects are unknown + but researchers say the drug called fk-506 could <unk> the <unk> field by reducing harmful side effects and by lowering rejection rates + rejection has been the major obstacle in the approximately N <unk> transplants performed world-wide each year + researchers began using the drug in february on patients who had received kidney <unk> heart and <unk> transplants + only two of N transplants have been rejected + the drug discovered in N is <unk> from soil <unk> found in japan + the pittsburgh patients are the first humans to be given the drug which is made by fujisawa pharmaceutical co + we 're shocked by it because it 's worked so fast said dr. thomas e. <unk> director of the university of pittsburgh <unk> program at a news conference here yesterday + we consider it a <unk> drug like one for aids said dr. john <unk> an <unk> at the university of pittsburgh + researchers say they believe fk-506 is N times more effective than the traditional <unk> drug <unk> made by swiss pharmaceutical giant <unk> ltd + they are also encouraged by the relatively mild side effects of fk-506 compared with <unk> which can cause <unk> failure <unk> <unk> and other problems + the side effects of <unk> have made the penalty for its success rather high dr. <unk> said + dr. <unk> said that fk-506 would not be available in the market for at least a year and that the fda approval process usually takes three years to five years + there are no firm plans to expand the experimental program beyond the university of pittsburgh whose hospital <unk> the most transplants in the world + researchers could n't estimate the cost of the drug when it reaches the market but they said fk-506 will enable patients to cut hospital stays by N N and reduce the number of blood tests used to monitor the <unk> of <unk> and other drugs among transplant recipients + dr. <unk> said the research has been largely financed by the national institute of health and by university funds and that fujisawa did n't give the hospital any grants + he said that the research team had no financial stake in the drug + we 've known for six months the effect of this drug and our advice to our people has been not to buy the company 's stock dr. <unk> said adding that <unk> from fk-506 would n't be ethical + economist david n. laband 's sept. N editorial-page article in hugo 's path a <unk> disaster <unk> the control of price <unk> swiftly ordered by south carolina 's governor after hurricane hugo + according to mr. laband <unk> for price controls occurs when income <unk> threatens to hit home + to be sure the threat has hit home down here + yet in mr. laband 's <unk> of free-market logic human greed and <unk> are the only permissible psychological reactions + allowing <unk> prices for <unk> would indeed <unk> the lines at stores as he contends + but not because resources are going to their most efficient use leaving scarce goods allocated to those buyers who place the highest value on them + rather lines would <unk> because at higher prices many victims could not afford <unk> such as food and medical supplies + it is <unk> to <unk> that a poor <unk> woman can not receive immediate relief for her family at fair prices because she does not have as much to protect as a rich family + moreover essential relief supplies such as ice must be distributed throughout the population because of potential health problems from <unk> food and possible <unk> of disease + such <unk> effects give the state a right to intervene in the marketplace and temporarily coordinate allocation of resources + fortunately <unk> and charities are not motivated by <unk> but by <unk> + why should they have to <unk> with <unk> rushing in to turn a quick profit + these <unk> <unk> would be <unk> to take advantage of the situation if they ever expect to face the people of south carolina again + the government is actually protecting <unk> <unk> and other <unk> who can not see beyond their own short-term gain + south carolina deserves an a for its quick and timely relief efforts + mr. laband meanwhile gets an a for his <unk> recital of <unk> arguments + give him an f for his failure to understand the ethics of economic equity + signed by N students + of douglas <unk> 's <unk> economics class + university of south carolina + columbia s.c + mr. laband gives us an idea why economists ' predictions are usually wrong + they set up absurd situations <unk> from reality and then try to reason from them + i 'm surprised he did n't advocate letting people <unk> since that behavior can also be <unk> in a disaster and every individual has an incentive to alter the distribution of income in his favor + price controls were so <unk> embraced by charleston because price <unk> in this situation is equivalent to <unk> + <unk> foster + <unk> va + mr. laband described one of the more <unk> threats we face when dealing with disasters such as hugo <unk> <unk> such as that by the charleston city council as it <unk> about trying to do something + since he concentrated on the economic <unk> of such <unk> he did n't mention certain other of their effects + they <unk> law-enforcement resources at a time they are most needed for protecting lives and property + also rather than increase supplies they reduce them and encourage <unk> + and they or even the prospect of them discourage disaster <unk> in the form of speculative advance <unk> of supplies by merchants + n. joseph <unk> + miami <unk> fla + would mr. laband also suggest that the red cross <unk> army military units police fire departments rescue units and individual citizens cease their efforts to assist hugo 's victims because they interfere with his concept of the free market + what about those <unk> people all over the country who are donating food water and other <unk> of life to these people who could be any of us + should they too stop <unk> with his free market + maybe he thinks they should also sell to the highest bidder + and what about insurance firms + should they be required to pay claims based on <unk> costs for labor and materials + mr. laband should <unk> since he lives in south carolina + in a free market his insurance rates can be raised to recover <unk> losses + john w. rush + <unk> <unk> + having been through several <unk> and <unk> i have a different perspective + mine comes from seeing thriving communities <unk> but only temporarily + their recovery came surprisingly fast and always with the help of neighbors + the shock of seeing homes destroyed and city services disrupted may cause some to <unk> priorities such as the true economic value of a <unk> full of meat + in texas after hurricane <unk> major grocery chains used their truck fleets to ship essential goods to houston no <unk> just good will + tom <unk> + <unk> texas + we here in the affected areas were <unk> by mr. laband 's analysis of time values and his comparisons of effectiveness concerning research and development + his theoretical approach and its publication in this venerable paper are no doubt a <unk> <unk> for him + too bad theory fails in practice + we consumers tend to have long memories + the businesses <unk> to mr. laband 's effective price system will be remembered when <unk> returns + perhaps considering the value of our time we will be unable to <unk> their <unk> in the <unk> era + i have a question for mr. laband how do i explain to the single mother of three standing in line next to me for the past three hours that the two bags of ice she needs to keep her children 's food <unk> will take her last $ N + i 'm sure she 'll appreciate what an efficient reaction to her problems the price system has created + chris edgar + <unk> beach s.c + this seems to be the season for <unk> in chicago + though the cubs ' championship season ended with the national league playoffs a revival of the organic theater 's production of <unk> <unk> a play in nine <unk> set in the <unk> field <unk> continues within <unk> distance of the <unk> + <unk> of a different sort also are being offered by our two major theater <unk> the goodman and steppenwolf + each is more <unk> than an unexpected <unk> baseball championship but both help explain why chicago remains a vital center of this country 's regional theater movement + the goodman is offering a <unk> version of <unk> 's the <unk> through nov. N + the original is a comedy about <unk> a man who sees <unk> and <unk> in everyone except himself + he is the <unk> friend of <unk> and the <unk> <unk> of <unk> + the play is filled with <unk> dishonesty and <unk> + <unk> years ago the <unk> richard wilbur <unk> this <unk> comedy merely by avoiding the <unk> sort of thing as he wrote in his introduction + otherwise the scene remained <unk> 's house in N + assuming modern audiences readily understand that <unk> 's social indictment covers their world as well as <unk> paris mr. wilbur concentrated his <unk> <unk> on <unk> the <unk> french <unk> into <unk> and theatrical english <unk> <unk> + the wilbur translation is remarkable well worth a read and even better seen in the theater if you ever have the opportunity + but if you happen to be coming to chicago in the next few weeks do n't fail to have a look at robert falls 's the <unk> at the goodman + if mr. wilbur 's translation is a <unk> ground lens through which we see the <unk> and corruption of <unk> paris mr. falls 's production is a mirror in which we see ourselves + mr. falls the goodman 's artistic director took a recent <unk> by neil bartlett and significantly adapted it + mr. bartlett had <unk> <unk> 's cast of characters to six and set them in the london media world of <unk> britain + mr. falls transfers the setting to hollywood and <unk> the characters into what passes for <unk> there agents producers actors writers and <unk> + it works + mr. bartlett managed to more or less maintain <unk> 's <unk> <unk> form N <unk> lines in <unk> <unk> + mr. falls kept the form but <unk> it with mr. bartlett 's further help + with a <unk> cast led by david <unk> as <unk> <unk> <unk> as <unk> and especially william brown as a <unk> who plays the hollywood game but harbors <unk> values and feelings the goodman production barrels through an <unk> hollywood party with <unk> and <unk> + if this version with its <unk> to steven <unk> <unk> and <unk> attracts younger audiences who might stay away from the classical version then messrs. bartlett and falls are justified in abandoning mr. wilbur + a <unk> play may be easier to revive than one merely N + the steppenwolf theatre company back from a critical and box office success in london with its <unk> of <unk> 's the <unk> of <unk> opened the new season with harold <unk> 's the <unk> first produced by the royal shakespeare company in N + back then mr. <unk> was not only the angry young british playwright but also the first to use <unk> and sentence <unk> and <unk> <unk> almost to the exclusion of what we previously understood to be theatrical dialogue + when the <unk> was first produced on this side of the atlantic actors and directors were <unk> + <unk> were lengthy nobody moved or <unk> + nobody <unk> <unk> and nobody in the audience was encouraged to <unk> + this kind of theater was new to us + also it was not a funny time over here what with the vietnam war the <unk> democratic convention assassinations and <unk> + but under jerry <unk> 's direction the current steppenwolf production scheduled to play through nov. N breaks through the flat and boring <unk> that the <unk> had become + led by a <unk> performance by alan wilder as max the father the play is at once an <unk> and <unk> <unk> of a family 's rage <unk> fear and <unk> + encouraged by mr. wilder 's <unk> <unk> embarrassed <unk> and <unk> <unk> the audience gets the joke and begins to <unk> before the end of the first act + three of the family members max and his two sons <unk> and <unk> live off the <unk> max is a retired butcher <unk> a <unk> and <unk> an <unk> <unk> + sam max 's brother has escaped the <unk> by working as a <unk> <unk> and never seeking a wife + teddy the <unk> of max 's sons has made the most dramatic escape by becoming a professor of philosophy at an american university + though it 's clearly max 's wife who held <unk> here until her death now none of the other male residents of this <unk> household can challenge max + the play concerns teddy 's <unk> with his wife of six years ruth + <unk> <unk> <unk> as teddy seems the only cast member unable to get beyond the <unk> approach to a <unk> character + as ruth <unk> harris a large and beautiful woman who may be our next <unk> <unk> begins almost immediately to <unk> each of the men + in the end teddy returns alone to america leaving ruth in max 's chair + we have seen her develop within a few hours from a shy and unknown <unk> to a <unk> of the <unk> who will replace the dead mother and then some + while steppenwolf was in london with the <unk> of <unk> bruce sagan the president of its board of directors quietly returned to chicago to buy a piece of real estate in the city 's rapidly <unk> north <unk> street restaurant and theater district + within a year he hopes steppenwolf will move into a new <unk> theater on that site + the <unk> currently <unk> in a converted dairy that seats N and provides little capacity for staging anything beyond a simple <unk> production + if we wanted to stage death of a salesman mr. sagan says <unk> <unk> would have to live in a ranch house because of the low ceiling + steppenwolf needs the extra seats even more than the fly space + it 's currently forced to turn away many potential subscribers beyond the N who can be <unk> in its present digs + for all the attention that chicago theater has received during the past decade not one new building has been devoted to it + mr. sagan a former publisher and real estate developer has put together an $ N million financial package that includes approximately $ N million of tax exempt bonds issued by the state of illinois the first time that a state has used its educational facilities authority to support construction of a theater and approximately $ N million in grants from the national <unk> for the arts the <unk> foundation and a few other deep pockets + the rest he is confident can be raised + his board members alone have pledged $ N and he is just beginning to massage local foundations and corporations + mr. sagan compares the importance of steppenwolf with <unk> <unk> 's mercury theater in the <unk> + but <unk> 's theater company turned out to have a brief one might say a <unk> existence + what will mr. sagan do with his new theater building if the <unk> of hollywood and broadway proves too much for such steppenwolf <unk> as john <unk> dangerous <unk> joan allen the <unk> <unk> and <unk> <unk> <unk> <unk> and the company <unk> + that 's ok mr. sagan replies + let this building be steppenwolf 's <unk> to chicago theater + mr. <unk> is a chicago-based law firm management consultant and a writer + after <unk> three days of heavy selling the beleaguered nasdaq over-the-counter market finally rebounded rising sharply in <unk> trading + the nasdaq composite index jumped N N or N to N + it rose more than the new york stock exchange composite which improved N N + among bigger stocks the nasdaq N index rose N N or N to N while the dow jones industrial average was up N N + richard bruno head of otc trading at painewebber said the otc market has a habit of lagging big moves on the new york stock exchange + while the industrial average rallied on monday following last friday 's collapse the otc market which did n't suffer too badly during the correction tumbled + our market got hit a lot harder on monday than the listed market mr. bruno said + we 're just recovering and getting back to business as usual + i 'm encouraged by the action + the trading pace was busy with N issues and N million shares changing hands + advancing issues beat declining ones N to N + much of the <unk> by otc traders and investors centered on shares of companies that might be financially affected by damage from the devastating earthquake in northern california + as investors speculated about the long and short-term implications shares of a number of companies that might either profit or face problems because of the disaster were actively traded + heading the list insurance construction and technology companies located in the san francisco bay area + <unk> stocks were mixed as investors tried to figure out how to assess the impact of the property damage and deaths on those concerns + traders said <unk> companies with the heaviest exposure in the san francisco area include the otc 's <unk> and ohio casualty + frank <unk> a trader who follows insurance stocks for <unk> <unk> said his strategy was to sell early + then if the stocks fell sharply he planned to begin buying them aggressively on the theory that the companies that insure against property damage and <unk> will have to raise rates eventually to compensate for the claims they will pay to earthquake victims and victims of last month 's hurricane hugo + as well <unk> and insurance brokerage companies will have improved profits + many investors expected damage from the hurricane to be the catalyst for higher rates in the industry which has been depressed because of low rates arising from intense competition + but mr. <unk> said the hurricane damage was n't extensive enough to prompt premium boosts + the companies just gave back what they had reserved for he said + now they 'll have to increase their <unk> to protect for the future and that means rate increases + overall otc insurance issues were mixed + <unk> fell N to N N on N shares + ohio casualty rose N to N N on N shares + st. paul cos. jumped N to N N on N shares + academy insurance fell N to N N but volume totaled N million shares + the nasdaq insurance index jumped N to N on the day while the barometer of big insurance and banking issues climbed N to N + investors expect <unk> data systems a company that provides disaster recovery services for <unk> businesses to profit from the earthquake + <unk> 's stock rose N N to N N on N shares + shares of <unk> a california road and bridge <unk> were heavily traded jumping N N to N N on N million shares + guy f. <unk> added N to N N on N shares + the company based in san francisco provides industrial infrastructure engineering and construction services + traders were initially nervous about shares of companies including many leading otc computer companies such as apple computer with offices in the <unk> of the area damaged by the quake + but most of those stocks fared well + apple computer gained N to N N <unk> rose N to N N + intel also added N to N N + but sun microsystems slipped N to N N + shares of biotechnology companies in the area were also higher + chiron was up N to N and <unk> gained N to N N + the stocks of <unk> companies located outside california improved too + microsoft advanced N N to N N and lotus development added N N to N N + in other earthquake-related news hambrecht & quist 's otc market makers were <unk> from trading yesterday and its positions were frozen for the day by the national association of securities dealers + power could n't be restored at the company 's san francisco headquarters to allow trading yesterday morning + in new york roger <unk> a hambrecht executive vice president said he expects otc trading at the company to resume this morning either in new york or in san francisco + in other trading <unk> <unk> services gained N to N on N million shares after reporting a loss for the first quarter which ended sept. N + the company earned $ N million in the year-earlier quarter + jaguar 's american depositary receipts added N to N N on volume of N million + analysts in london believe investors despite their <unk> to dump takeover stocks should hold on tight to their jaguar shares this newspaper 's heard on the street column said yesterday + amgen rose N N to N N in heavy trading + analysts figure amgen could benefit as a result of troubles facing its competitor genetics institute over the <unk> drug epo + genetics institute disclosed recently that it is <unk> in a dispute with <unk> <unk> which distributes the drug regarding the <unk> of some <unk> + ciba-geigy ltd. and chiron corp. said they extended their offer for connaught <unk> inc. valued at N million canadian dollars us$ N million to oct. N + the companies earlier said they did n't want to raise their offer to match a rival bid by <unk> merieux s.a. of c$ N a share or c$ N million + but they said the c$ <unk> bid which was due to expire monday may still be extended or <unk> + merieux a vaccine manufacturer based in <unk> france is <unk> by french state-owned rhone-poulenc s.a + ciba-geigy is a major pharmaceutical concern based in <unk> switzerland + chiron another pharmaceutical concern is based in <unk> calif + connaught is a biotechnology research and vaccine manufacturing concern + <unk> merieux 's bid for toronto-based connaught has run into problems with the canadian government which told merieux last week that it was n't convinced that the proposed acquisition would be of net benefit to canada + merieux officials are expected to meet with federal officials in <unk> today to discuss the decision + within minutes after the stock market closed friday i called sen. bill bradley of new jersey advised him that the dow jones industrial average had declined by N points late that afternoon and <unk> informed him that he and his fellow democrats were to blame + they had dealt a major setback that afternoon to president bush 's capital-gains tax cut proposal which had seemed in the bag after it passed the house <unk> earlier in the month + sen. bradley has it in his mind that such a tax cut would <unk> the tax reform he helped engineer in N + but he knows that as many as N of his fellow democrats are <unk> to vote for the cut popular among their constituents + as a result he took the lead in arguing that the cut should be blocked on procedural grounds + he helped persuade N of these senators to support him and majority leader george mitchell on these grounds + the budget reconciliation had to be dealt with by the oct. N deadline and these senate democrats refused to agree to allow a vote to <unk> capital gains to the budget bill knowing it would pass + denied a vote on substance the gop leadership in the senate on friday morning was confronted with a hard choice + it could throw in the towel and hope to win on capital gains late this month or it could follow the white house strategy to veto reconciliation unless capital gains was <unk> + the u.s. chamber of commerce has been in the <unk> in supporting the bush proposal + it endorsed the white house strategy <unk> it to be the <unk> way to victory + at noon friday a senior white house official advised richard <unk> the chamber 's chief economist that the white house would not agree to a budget reconciliation bill unless it had firm assurances that a vote on substance would be permitted in the senate + two hours later the first word emerged on capitol hill that the administration had agreed to reconciliation with no such assurances from senate democrats + mr. <unk> was shocked <unk> the office of richard darman director of the office of management and budget and the administration 's chief strategist on this issue + he left a message <unk> mr. darman of selling out + it was the senate republicans though who had edged away from the veto strategy + the stock market reacted as mr. <unk> did crumbling as it absorbed the news that mr. darman 's strategy had been abandoned + the stock market after all represents the collective expectations about the value of the future income stream of the nation 's capital stock discounted to present value + why should it be so surprising that a N N cut in the capital-gains tax would have such an enormous impact on the value of the nation 's capital stock + the total value of privately held assets is easily more than $ N trillion + the value traded on the exchanges is close to $ N trillion + if the tax on any gain to those assets was doubled would n't the value fall to the owners of the assets + is n't it reasonable to assume that the asset you own would be worth more if the government suddenly announced that if you sold it you would be able to keep N N more of its gain than you previously believed + indeed the stock market 's steady advance this year tracked with president bush 's success in advancing his capital-gains proposal + a N N cut in this year 's capital gains alone amounts to roughly $ N billion + we 're talking real money + when richard <unk> advised the financial press that the market crash was caused by the setback to capital gains he was generally ignored and mildly <unk> + instead the press corps readily accepted the notion that a <unk> in the takeover financing of united airlines instantly knocked N N off the value of the nation 's capital stock and caused <unk> around the world + mr. <unk> was pointing out an elephant <unk> through wall street while conventional wisdom had <unk> on the ual <unk> + why is this happening + for one thing quite a number of the leading spokesmen on wall street are not portfolio managers who understand that the value of assets is greatly affected by how government taxes those assets + they are economists and financial reporters who <unk> with the view that a capital-gains tax cut benefits the rich + yet they somehow think that wall street is <unk> to losing the tax cut that seemed so close friday morning and is now <unk> + the market rebound monday followed weekend assurances from mr. darman that the administration has other plans to win the cut which is alive and well + sen. bradley 's argument is that a capital-gains tax cut would be bad for the economy in the longer run + it would inevitably lead to an increase in marginal income-tax rates in N he thinks when the white house is forced to ask for higher taxes to meet budget targets + that is with capital gains cut the <unk> of the N accord will be gone and political realities will push up income-tax rates + the <unk> which he has heard is that if he and his fellow democrats are successful in killing the president 's proposal the revenue gap will open up <unk> in N because of the weakened economy + in this atmosphere there would be no serious consideration of tax increases + if sen. bradley would permit a vote on capital gains though it would pass christmas retail sales would be strong instead of <unk> by a falling stock market the N economy would be robust and the revenue gains at every level of government including new jersey 's would be surprisingly high + no tax increases would be necessary + the struggle over capital gains is the most important game in town + in washington and on wall street + mr. <unk> is president of <unk> inc. of morristown n.j + federal prosecutors said they have obtained a guilty plea from another person in the government 's ongoing probe of illegal payments in the record industry + william craig an independent record <unk> pleaded guilty to <unk> and criminal tax charges according to a statement issued by gary <unk> the u.s. attorney here + <unk> is the practice of making illegal undisclosed payments to radio station personnel in return for getting the stations to play certain <unk> over the air + as part of his plea agreement with the government the <unk> mr. craig faces a maximum of three years in prison + in return mr. craig agreed to cooperate in the government 's continuing <unk> probe says a spokeswoman for the u.s. attorney 's office + mr. craig and three others were indicted last year as part of that <unk> probe + two other defendants previously pleaded guilty and charges against the third were dropped + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + grumman corp. was awarded a $ N million navy contract for advanced acquisition of six <unk> tactical control aircraft + ltv corp. won a $ N million army contract for missile test equipment + unisys corp. received a $ N million air force contract for computer programming + ford aerospace & communications corp. a unit of ford motor co. was awarded a $ N million air force contract for computer improvements + rockwell international corp. was issued a $ N million air force contract for changes in the national aerospace plane + the tennessee valley authority issued $ N billion in bonds in the federal utility 's first public debt offering in N years + proceeds from the bonds with coupon rates in the N N range will be used to replace bonds with an average interest rate of N N + the tva said the refinancing should save $ N million a year in interest payments + the refinancing is part of the tva 's strategy of dealing with what has been an <unk> problem its staggering $ N billion debt most of which is owed to the treasury department 's federal financing bank + the tva currently plans to issue a total of $ N billion in bonds to <unk> its high-interest debt + the $ N billion bond issue also will help the tva meet its goal of not raising rates for another year said william f. <unk> the agency 's chief financial officer + the bond issue is tva 's first public offering since the financing bank was created in N primarily to finance the tva + but the offering almost did n't happen + the tva in fact decided to proceed with the bond offering following an agreement last week with the financing bank which allows tva to keep borrowing short term from the bank for two years after it goes to the public market + the treasury contended that tva could n't borrow from both it and the public debt market + the $ N billion in bonds break down as follows $ N billion in five-year bonds with a coupon rate of N N and a yield to maturity of N N $ N billion in 10-year bonds with a coupon rate of N N and a yield to maturity of N N $ N billion in 30-year bonds with five-year call protection a coupon rate of N N and a yield to maturity of N N + managing the bond issue is a group of investment banks headed by first boston corp. and <unk> by goldman sachs & co. merrill lynch capital markets morgan stanley & co. and salomon brothers inc + mutual-fund <unk> john m. templeton has put his money where his <unk> is pouring $ N million into one of his own funds the templeton value fund + mr. templeton owns shares in several of the N funds that his firm manages but only in three of the N available to u.s. investors according to filings with the securities and exchange commission + those are templeton global income templeton emerging markets and now the value fund + why did he add the value fund to the list + because he 's very bullish on the emerging growth stocks that make up the fund 's portfolio mr. templeton said from his <unk> <unk> + emerging growth stocks have n't been popular in america for years they 've been neglected he said and their prices often trail the market as a whole + mr. templeton 's <unk> purchase in the closed-end fund came before the u.s. stock market 's plunge last friday but still proved slightly profitable + mr. templeton bought his shares in several separate purchases between aug. N and sept. N according to reports with the sec + he bought at share prices ranging from $ N to $ N + the fund closed yesterday in new york stock exchange composite trading at $ N up N cents + in addition mr. templeton received a dividend of N cents a share oct. N + river run + a senior vice president and a vice president at james river corp. sold the majority of their shares in the richmond va. <unk> concern in late august and early september reports filed with the sec show + the executives who got $ N a share for the stock showed good timing + in big board trading yesterday james river shares closed at $ N down N cents + on sept. N robert joseph <unk> the firm 's senior vice president of employee and public relations sold N shares leaving himself with N shares of james river + including a sale of stock last february mr. <unk> has sold N N of his stake in the company this year according to sec filings + mr. <unk> declined to comment when asked about the sales + james a. <unk> a vice president sold N shares aug. N + he still has N shares according to sec files + mr. <unk> also declined to comment + interest-rate player + cincinnati gas & electric co. tops the companies portion of the accompanying insider trading table this week + three of the utility 's directors have at least doubled their holdings in the company since july + the largest purchase was by <unk> <unk> who bought N shares for $ N + mr. <unk> who is also president of <unk> broadcasting co. said he bought the shares because he keeps a utility account at the brokerage firm of salomon brothers inc. which had recommended the stock as a good buy + salomon brothers confirmed that it has had a buy recommendation on the stock for about two years + cincinnati gas & electric is in good shape mr. <unk> said and utilities are a good investment because interest rates are going down + mr. <unk> paid an average of $ N for each share + the stock closed yesterday on the big board at $ N down N cents + the two other directors bought N and N shares respectively at prices between $ N a share and $ N a share filings with the sec show + the two could n't be reached for comment + a company spokesman said he could n't explain their sudden <unk> + i do n't know of any news or anything unusual happening here said bruce <unk> director of media services + peter <unk> in pittsburgh contributed to this article + t. rowe price associates inc. said directors recommended stockholders approve a 2-for-1 stock split and an increase in authorized shares to N million from N million + stockholders will vote on the proposal at a meeting dec. N + t. rowe price is an investment adviser to mutual funds institutions and individuals + in one of the first <unk> <unk> cases to go to trial a <unk> jury decided in favor of the defendant burlington industries inc + the verdict reached late last week in cincinnati may end an <unk> legal battle for the <unk> n.c. carpet maker + glenn and sharon <unk> of cincinnati had sued the <unk> <unk> in N after <unk> burlington carpets in their office + the beebes alleged that toxic <unk> from the carpets made them sick + as a result of their illness the beebes said they lost $ N million in wages and earnings + in addition they said that months of exposure to the chemicals has left them sensitive to a wide range of commonly used <unk> + the case had been closely watched because attorneys anticipate increasing litigation nationally over the so-called <unk> syndrome + plaintiffs ' lawyers say that buildings become sick when inadequate fresh air and poor <unk> systems lead <unk> to build up inside + anthony j. <unk> a lawyer for burlington said the company believes the beebes ' symptoms were not related to the carpeting + he said that ill effects from new carpets <unk> themselves immediately but that the beebes ' symptoms appeared months later + <unk> adams the beebes ' lawyer said the verdict would not discourage other plaintiffs from filing such suits + scientists are only beginning to understand what causes <unk> syndrome and much of that research was unavailable when the beebes filed the case she said + the beebes now believe that a prime <unk> for their injuries was <unk> from an <unk> used in the carpeting + but the beebes did n't come to that conclusion until time limits had <unk> for adding the <unk> maker as a defendant in the case ms. adams said + the beebes have not yet decided whether to appeal + times square development opponents are dealt setback + the appellate division of new york state supreme court dismissed six lawsuits attempting to block a $ N billion project planned for <unk> street in manhattan + opponents of the project had claimed that the city and the state of new york which are <unk> the project had failed to <unk> to environmental guidelines + all but two of the N or so lawsuits that have been filed since the project 's N approval have been dismissed before the trial stage + the two that remain have n't yet reached the pre-trial <unk> stage + state officials said the court 's ruling clears the way for proceedings to condemn buildings in the area + this project is ready to move said state urban development corp. chairman vincent <unk> + but developers of four planned office towers cautioned that obstacles still remain + as part of the agreement with the state the developers a partnership of park tower realty and prudential insurance co. of america said they would not proceed with <unk> proceedings while there was significant litigation pending + park tower general counsel <unk> mayer said the development team will have to review two additional lawsuits before putting up a $ N million letter of credit to cover <unk> costs + also he said the partnership is waiting to see whether the appellate division 's ruling will be appealed + the plan which has been plagued with delays and <unk> setbacks seeks to transform the area from a <unk> <unk> to a more <unk> office and theater district + state and city officials are still negotiating with developers to <unk> historic theaters and build and operate a merchandise mart and hotel + federal judge <unk> role of u.s. courts in <unk> decisions + u.s. district judge jack b. <unk> of brooklyn n.y. ruled that a man <unk> in an attack on an israeli passenger bus in N can be <unk> to israel for trial + a <unk> had initially refused the request ruling that the attack had been a political act for which the man <unk> <unk> <unk> would be exempt from <unk> + however judge <unk> wrote in his opinion late last month that terrorism and acts of war against <unk> can not be defined as political acts + judge <unk> also ruled that judges must consider prior to <unk> whether the defendant will be treated fairly in a foreign court + to do so the judge said the u.s. courts must review the judicial process in the foreign country <unk> of the state department 's assessment + he said that in this case he <unk> with the state department 's decision that mr. <unk> should be <unk> + mr. <unk> 's lawyer said he would appeal + lawyers close to the case said they believed the ruling was unprecedented + up until now the courts have said it is not their role to <unk> the foreign country 's courts said <unk> <unk> the assistant u.s. attorney on the case + former canadian ambassador to the u.s. <unk> e. <unk> has joined the philadelphia law firm of <unk> hamilton & <unk> as a consultant + mr. <unk> who serves as a consultant to <unk> elliott one of canada 's biggest law firms is advising <unk> hamilton 's washington office on legal matters related to <unk> investment corporate finance and international transactions + <unk> + in a speech prepared for delivery in new york yesterday retired justice lewis <unk> contested the notion that the last supreme court term marked a turn toward <unk> <unk> who agreed on little else unanimously proclaimed a shift in direction on the court + i take these <unk> like many that have <unk> them in past years with a grain of salt + in an era of sound <unk> ' and instant opinion polls it is dangerous to apply broad labels to a single term + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + the <unk> <unk> war when egypt <unk> into israel on oct. N N the <unk> day in the jewish calendar lasted barely a month + but one <unk> effect is still with us + the arab states always bitterly <unk> of u.s. support toward israel realized they held an <unk> weapon oil + early in october six arab nations in the persian gulf <unk> up prices sharply + on oct. N led by saudi arabia the world 's largest exporter they <unk> oil shipments to the u.s. and to the netherlands israel 's <unk> european ally + the timing was perfect + the arabs had tried <unk> before + in N when britain france and israel <unk> egypt to seize the suez <unk> arab producers cut off supplies to europe + texas simply pumped harder + u.s. oil supplies however had peaked in N and N and by N were declining + imports then six million barrels a day came primarily from venezuela and canada + but middle east supplies were growing in importance + by N the u.s. was bringing in two million barrels of arab oil a day more than N N of the N million barrels consumed daily + politics and economics conspired + japan and europe far more dependent on mideast oil than the u.s. would n't <unk> the arabs or trade off their precious supplies + the u.s. did manage to supply the dutch with oil by <unk> supplies once oil is shipped no one can tell its source + but <unk> americans <unk> and so did the u.s. and other <unk> governments + shortage and crisis became <unk> words although neither really applied + the spot <unk> that showed up were largely the result of confusion much of it in washington though that was cold comfort for drivers waiting in <unk> lines at the gas <unk> + the <unk> lasted only six months but the price <unk> became a fact of life + what the arabs started inflation finished + once and for all $ <unk> crude oil and <unk> gasoline were history + times may be tough on wall street for some but a few bosses are making as much as ever or more + at bear stearns cos. for example the N executive officers led by chairman alan <unk> greenberg got a pay increase to $ N million for the <unk> period ended june N from $ N million for the N months ended april N N + the figures do n't include substantial dividends on holdings of bear stearns stock + mr. greenberg himself was paid $ N million before an estimated $ N million in dividends up from $ N million the year before + the increase is noted in the brokerage firm 's latest proxy statement filed with the securities and exchange commission + because it operates on a fiscal year bear stearns 's yearly filings are available much earlier than those of other firms + the latest period includes N months instead of N because bear stearns changed to a fiscal year ending in june instead of april + meanwhile bear stearns 's N stock and bond salesmen saw <unk> <unk> over the past year which the company says reflected lower commission revenue caused by a decline in investor activity in the markets + however bear stearns on monday reported improved earnings for its first quarter ended sept. N partly because of a N N increase in commissions during the quarter + william j. <unk> chief financial officer defended the <unk> salaries at bear stearns + all of us are on a base salary of $ N if the firm makes nothing and that 's pretty low as far as wall street goes mr. <unk> said + however bear stearns has never had an unprofitable year since its founding N years ago + four bear stearns executives besides the <unk> mr. greenberg were paid $ N million or more before dividends for the N months ended in june + according to the proxy statement james e. <unk> N bear stearns 's president made $ N million an executive vice president michael l. <unk> N made nearly $ N million and two executive vice presidents vincent j. <unk> N and william j. <unk> N made about $ N million each + mr. <unk> said the firm has a straight <unk> formula for determining compensation based on the firm 's earnings + just because a particular element of the firm is down such as <unk> does n't mean the executive committee should be paid less he said + morgan grenfell group plc said john craven group chief executive officer is taking over the <unk> of the merchant banking group from sir peter <unk> who is retiring + mr. <unk> will remain a member of the merchant bank 's board + mr. craven is widely credited with <unk> morgan grenfell 's <unk> on its core corporate finance fund management and banking activities over the past year + last year morgan grenfell shut down its ailing u.k. securities operations + mr. craven said his move to the <unk> means he will take a less active role in the day-to-day management of the group but he added that the merchant bank 's strategic focus remains unchanged + mr. craven joined morgan grenfell as group chief executive in may N a few months after the resignations of former chief executive christopher <unk> and other top officials because of the merchant bank 's role in guinness plc 's controversial takeover of <unk> 's co. in N + morgan grenfell had advised guinness on the bid which was surrounded by allegations that guinness used <unk> means to support the bid 's value + morgan grenfell said michael <unk> currently group deputy chief executive will assume the chief executive position + the merchant bank also announced that finance director david <unk> is taking early retirement for personal reasons + his duties will be taken over by anthony <unk> who has been elected deputy chairman + news of mr. <unk> 's retirement comes one day after morgan said that christopher whittington resigned as chairman of morgan 's banking subsidiary to join a financial services firm + mr. craven said both messrs. <unk> and whittington had planned to leave the bank earlier but mr. craven had persuaded them to remain until the bank was in a healthy position + if there 's any <unk> about the departures it 's that they are leaving at a time when the business is in reasonably good shape and going forward very well + last month morgan grenfell announced its pretax profit rose N N to # N million in the first half boosted by a healthy growth in its domestic and international corporate finance business + the following were among yesterday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report + lockheed corp. $ N million of N N N notes due oct. N N priced at N to yield N N + the issue was priced at a spread of N basis points above the treasury 's 10-year note + rated single-a-3 by moody 's investors service inc. and single-a by standard & poor 's corp. the issue will be sold through underwriters led by goldman sachs & co + california health facilities financing authority $ N million of revenue bonds for kaiser <unk> due N N N N and N tentatively priced by a painewebber inc. group to yield from N N in N to N N in N + serial bonds were priced to yield to N N in N + there are about $ N million of N N bonds priced at N N to yield N N in N about $ N million of N N bonds priced at N N to yield N N in N about $ N million of N N bonds priced at N N to yield N N in N and about $ N million of N N N bonds priced to yield N N in N + the bonds are rated <unk> by moody 's and double-a by s&p according to the lead underwriter + pennsylvania higher education facilities authority approximately $ N million of revenue bonds for <unk> university series N due N N and N priced late monday by a merrill lynch capital markets group to yield from N N in N to N N in N + serial bonds were priced to yield from N N in N to N N in N + there are about $ N million of N N term bonds due N priced to yield N N and about $ N million of N N term bonds due N priced at N to yield N N + the bonds are insured and rated triple-a by moody 's and s&p + connecticut $ N million of general obligation capital appreciation bonds college savings plan N series b priced by a prudential-bache capital funding group + the zero-coupon bonds were priced to yield to maturity from N N in N to N N in N N and N + the bonds have received a rating of <unk> from moody 's and a <unk> rating is expected from s&p the underwriter said + oregon $ N million of general obligation veterans ' tax notes series N dated nov. N N and due nov. N N through a chemical securities inc. group + the group is offering the notes priced as N N N securities to yield N N + the notes are rated <unk> by moody 's and <unk> by s&p + university of medicine and <unk> of new jersey $ N million of series c bonds priced by a prudential-bache capital funding group + the bonds rated single-a by moody 's and double-a by s&p were priced to yield from N N in N to N N in N + all serial bonds are being offered at par except those due N + federal home loan mortgage corp. $ N million of remic mortgage securities being offered in eight classes by salomon brothers inc + the offering series N is backed by freddie mac N N securities + the issue used <unk> pricing + federal national mortgage association $ N million of remic mortgage securities being offered in N classes by greenwich capital markets + the offering series N is backed by fannie mae N N N securities and used <unk> pricing + the issue brings fannie mae 's N remic issuance to $ N billion and its total volume to $ N billion since the program began in april N + <unk> electric railway co japan $ N million of bonds due nov. N N with equity-purchase warrants indicating a N N coupon at par via nomura international ltd + each $ N bond carries one warrant exercisable from nov. N N through oct. N N to buy company shares at an expected premium of N N N to the closing share price when terms are fixed oct. N + <unk> co japan $ N million of bonds due nov. N N with equity-purchase warrants indicating a N N coupon at par via daiwa europe ltd + each $ N bond carries one warrant exercisable from nov. N N to oct. N N to buy company shares at an expected premium of N N N to the closing share price when terms are fixed oct. N + <unk> steel co korea $ N million of bonds due nov. N N with equity-purchase warrants indicating a N N N to N N N coupon at par via merrill lynch international ltd. and <unk> <unk> securities co + each $ N bond carries one warrant exercisable from may N N through oct. N N to buy company shares at an expected premium of N N to N N to the closing share price when terms are fixed oct. N + <unk> international funding plc u.k. parent N million australian dollars of N N N bonds due nov. N N priced at N N to yield N N less full fees via <unk> morgan securities ltd + guaranteed by <unk> plc + fees N + tennessee valley authority a $ N billion <unk> offering of power bonds priced through an underwriting group led by first boston corp + the size of the issue was increased from an originally planned $ N billion + the first part consisting of $ N billion of bonds due oct. N N with a five-year <unk> provision was priced as N N N securities at N to yield N N + the 30-year issue was priced at a spread of N basis points above the treasury 's 30-year bellwether bond + the second part consisting of $ N billion of noncallable bonds due oct. N N was priced as N N N securities at N to yield N N + the 10-year issue was priced at a spread of N basis points above the treasury 's 10-year note + the third part consisting of $ N billion of noncallable bonds due oct. N N was priced as N N N securities at N to yield N N + the five-year issue was priced at a spread of N basis points above the treasury 's comparable note + the issue is rated triple-a by moody 's and triple-a by s&p + par pharmaceutical inc. said it named its interim president and chief executive officer kenneth i. <unk> to those posts permanently and elected him to the board + par also said it was advised by the u.s. attorney for maryland that it is one of a number of companies being investigated by a federal grand jury for alleged violations of the federal food drug and cosmetic act + par a <unk> maker that has been plagued by management problems was already the subject of a federal criminal inquiry into the <unk> process and a food and drug administration investigation + a par spokesman said he understood the criminal investigation in maryland <unk> to matters par disclosed in july when par said it filed false drug information with the fda + at the time the company said it was <unk> one of its drugs and had stopped selling two others + the spokesman said he also understood that the inquiry related to the existence of an <unk> production book + the book noted changes made at the manufacturing level that were n't disclosed to the fda + par said it is <unk> in the investigation + also yesterday <unk> patel a former par official who pleaded guilty to providing an fda employee an illegal <unk> of $ N was sentenced by a federal judge in baltimore to one year of community service and a $ N fine + mr. patel also was placed on three years ' <unk> + mr. patel resigned as senior vice president of par in april + in july par and a <unk> unit agreed to plead guilty in that inquiry as did another former par official + mr. <unk> began running the company on an interim basis in late september + par said it selected him for the posts of president and chief executive on a permanent basis because of his experience in the industry and his performance at par + <unk> levine chairman said mr. <unk> had taken significant steps to restore the company 's credibility and sense of <unk> and integrity + just after midnight monday federal spending started to drop by $ N billion + what do you say we all close down the <unk> game go home and bank the $ N billion + that 's essentially what budget director richard darman is suggesting and we think he deserves as much support as he can get + if human beings ca n't cut federal spending <unk> and they ca n't let the computers do it + congress with a measure of white house <unk> has been <unk> the spending accounts for years under the cover of omnibus appropriations bills + indeed without earlier <unk> the current sequester of $ N billion would have been even larger + we suspect voters are fed up with the <unk> + consider for instance that even yesterday 's widely publicized sequester is likely to be <unk> if business as usual is allowed to prevail + under the law gramm-rudman 's <unk> in federal programs are supposed to be permanent + social security and spending for poor people are <unk> + however the associated press 's account of the monday sequester order signed by president bush neatly captured the <unk> congress shows toward the notion of a legally <unk> commitment + lawmakers have been saying for weeks that they plan to roll back the cuts as soon as they agree to a compromise on a <unk> bill + mr. darman 's <unk> to save the sequester was backed up yesterday by white house press secretary marlin fitzwater + there is some feeling here that the cuts are the way to go + it will reduce spending in a very effective fashion + this attitude is being <unk> away by <unk> around washington as little more than tough talk + it looks to us like a golden opportunity for george bush to <unk> off at the <unk> all this talk about a <unk> <unk> presidency + mr. bush would be acting in the public interest if he let the washington <unk> who manipulate these budgets the bureaucrats the lobbyists the congressional staffers live for just one year on a restricted diet + ask <unk> <unk> thin is in + senator phil <unk> pointed out monday that in the N years before gramm-rudman was enacted in N federal spending grew by about N N a year since the law it 's grown at under N N annually + another major factor in this positive trend was ronald reagan 's decision early in his presidency to fight the budget war on the expenditure side rather than raising taxes + george bush 's continued support of the tax dam <unk> this strategy of <unk> congress to make choices among competing priorities rather than just saying yes to all the <unk> special-interest <unk> that fill the <unk> trough + if washington 's <unk> ever succeed in <unk> the tax dam americans will be <unk> in a red sea of new spending programs such as <unk> child care + child care was one of the many <unk> bills pulled out of the senate 's reconciliation bill last friday + others were the capital-gains cut section N repeal the disabled workers bill and the unprecedented <unk> of the catastrophic health act + all this stuff still is in the house 's <unk> reconciliation bill and many members say they 're reluctant to pull out <unk> bills just to see them die + republicans especially want a guarantee from the house leadership that they 'll get an <unk> vote on the bills + house speaker foley ought to deliver that promise + this is the way government is supposed to work with politicians taking responsibility for votes that their constituents can identify instead of <unk> them in the great reconciliation garbage truck + we have as much <unk> as anyone for those <unk> <unk> days in washington when <unk> men and women <unk> over budgets and even <unk> a bit to see that the bridges got build roads <unk> soldiers paid or that the desperately poor were <unk> for + those days are gone + nor do we see any reason to believe that a metropolitan washington that has gotten fat and rich and <unk> in the shadow of the federal <unk> will change much on its own initiative + save the sequester and let washington <unk> + the new york stock exchange said a seat sold for $ N down $ N from the previous sale oct. N + seats are currently quoted at $ N bid and $ N offered + the $ N sale price earlier this month was the lowest in nearly three years + exchange seats hit a peak of $ N in september N + the canadian government auctioned N million canadian dollars us$ N million of N N bonds due dec. N N + the average accepted yield bid was N N for a price equivalent of N + proceeds of the sale will be used to redeem c$ N million of government bonds maturing nov. N and for general government purposes + northern trust corp. said its board adopted a shareholder rights plan aimed at <unk> unwanted takeover bids but said it 's not aware of any plan to acquire the banking concern + under northern trust 's plan shareholders were issued rights that in the event of certain attempted takeovers allow holders to buy shares in the company at half price + national patent development corp. said it plans to purchase as many as N common shares of its <unk> <unk> sciences inc. unit in periodic <unk> purchases + the N shares are about N N of <unk> 's common shares outstanding excluding national patent 's stake + noting the recent food and drug administration approval of <unk> 's <unk> <unk> treatment national patent said it believes <unk> 's stock is undervalued + japanese investors <unk> by monday 's strong rally on wall street erased most of that day 's losses on the tokyo stock exchange + but analysts said the rebound did n't remove the cautious mood from the market + in london stocks closed lower in volatile trading as an opening rally was <unk> by <unk> u.s. trade figures + paris shares had a similar reaction but most other european <unk> posted gains as did all major asian and pacific stock markets + tokyo 's nikkei index of N stocks jumped N points to close at N + the rise came a day after the year 's biggest drop on monday when the nikkei fell N or N N in response to friday 's N N plunge on wall street + in early trading wednesday in tokyo the nikkei index rose N points to N + on tuesday the <unk> tokyo stock price index of issues listed in the first section which fell N monday rose N or N N to N + trading was relatively thin at an estimated N million shares though <unk> than monday 's N million + advancing issues outnumbered decliners N with N unchanged + we 're back to square one said simon <unk> an analyst in japan for kleinwort benson international inc + japanese domestic institutions including trust banks and investment management firms that had been on the sidelines during monday 's fall were back in the market analysts said + foreign investors reportedly started off selling but later joined in the buying + the tokyo rally seemed to confirm the view frequently expressed in japan in the past few days that the drop in new york was a local problem related to merger and acquisition activity in the u.s. + this time we do n't really have to worry about tokyo said an official at daiwa securities co + nothing has changed fundamentally in the tokyo market + but even though tokyo appears <unk> by recent market volatility analysts and traders say there are still a few concerns on the horizon + in particular japanese investors will be keeping a wary eye on wall street to see whether monday 's <unk> rally holds up as fresh u.s. economic data are released + people are placing small bets + there 's no huge buying said stephen hill head of equity sales at <unk> fleming securities ltd. in tokyo + really <unk> views right now would be <unk> + yesterday 's buyers favored real estate construction and other <unk> issues reflecting the fact that many tokyo investors now feel safer with domestically <unk> stocks analysts said + they also are concerned about the persistent strength of the dollar against the yen as a weaker yen leads to higher import prices in japan and adds to domestic <unk> pressures + currency concerns also weigh heavily on interest <unk> stocks such as banking and other financial issues because of fears that japanese interest rates might have to rise to keep the dollar in check + among steel shares <unk> rose N to N yen $ N a share and nippon steel gained N to N + construction shares that gained included <unk> which rose N to N + in the real estate sector mitsui real estate development was up N at N and mitsubishi estate gained N to N + london 's financial times-stock exchange 100-share index fell N points to N + it was down more than N points a half-hour before the close marking a <unk> turnaround from its high reached in the first N minutes of trading + the narrower financial times 30-share index fell N to N + volume was an active N million shares about double the recent levels but down from N million the previous day which u.k. traders have dubbed manic monday + prices opened strongly on the basis of monday 's wall street rally and yesterday 's gains in tokyo + but the advance faltered as <unk> traders and investors jittery about the u.k. economic outlook took over + the unexpectedly wide u.s. august trade deficit of $ N billion hit an already jittery u.k. market in <unk> + michael <unk> who manages sales and trading for brokerage concern societe generale <unk> <unk> said it 's a nervous market + it was all over the place + if you bought you wish you had n't and if you sold you wish you had n't + he said the current market is all about sentiment and the sentiment in london is N N anxiety and worry + britain 's economic fundamentals he said do n't look very bright + dealers said london showed signs of <unk> in <unk> after wall street avoided sharp losses despite the trade report but a wave of futures-related selling later in the session sent buyers back to the sidelines + still some sectors found buying interest after being actively sold in recent weeks + merchant banks were stronger across the board + morgan grenfell which has been mentioned in takeover rumors rose N to N pence $ N a share + <unk> warburg a rumored target of some european banking concerns finished N higher at N + <unk> rose N to N and <unk> rose N to # N + on the corporate front ford motor announced that it raised its stake in u.k. luxury car maker jaguar to N N from N N + jaguar shares jumped N before easing to close at N up N + <unk> a british computer hardware and communications equipment maker eased N to N + it announced a N N plunge in pretax profit for the latest year + brewery stocks were firm to higher on talk of early bargain-hunting but most ended below their <unk> + bass ended up N higher at N guinness closed at N down N and scottish & <unk> dropped N to N but whitbread class a shares rose N to N + dealers said there was late talk of a whitbread sale of brewing operations to scottish & <unk> + the most active shares were major <unk> particularly oils and utilities such as british gas and british telecommunications + traders attributed the action in them largely to defensive <unk> in a volatile market + british gas finished at N down N on N million shares british petroleum fell N to N on N million shares and british <unk> was N lower at N on turnover of N million shares + cable & <unk> fell N to N + also in active trading british steel fell N to N as N million shares changed hands + <unk> electric which traded N million shares declined N to N + in other european markets share prices closed sharply higher in frankfurt and zurich and posted moderate rises in stockholm amsterdam and milan + paris closed lower and most brussels shares were unable to trade for a second consecutive day because of technical problems + south african gold stocks closed higher + elsewhere share prices rebounded in hong kong sydney singapore wellington taipei manila and seoul + in hong kong sydney and singapore the largest of those exchanges stocks recovered one-third to one-half of the ground they lost in monday 's plunge with major market indexes posting gains of N N to N N + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + <unk> industries inc. said it received approval to proceed on four separate projects with a total contract value of $ N million + the projects include construction of a N <unk> <unk> plant for <unk> <unk> l.p. <unk> mich. a steam generating plant at ontario calif. that <unk> will own and operate and two <unk> control projects in orange county calif + <unk> corp. and <unk> corp. said they completed the previously reported sale of <unk> 's san <unk> passive components division to <unk> + <unk> a new york-based maker of passive electronic products paid $ N million in cash to <unk> a <unk> maker of semiconductor products + passive components makes <unk> and filters used to protect electronics + consolidated papers inc. said it plans to spend $ N million on new <unk> equipment and facilities + the producer of paper used in magazines and by commercial printers said spending on the expansion is planned to begin in the first quarter of N + the expansion is subject to approval by federal and wisconsin environmental regulators + the stock of applied power inc. which split 2-for-1 in may has risen since august N + in yesterday 's edition it was incorrectly stated that the company 's share price has <unk> since august N + the stock market 's dizzying gyrations during the past few days have made a lot of individual investors wish they could buy some sort of insurance + after all they wo n't soon forget the stock bargains that became available after the october N crash + but while they want to be on the alert for similar buying opportunities now they 're afraid of being <unk> by another <unk> plunge + the solution at least for some investors may be a hedging technique that 's well known to players in the <unk> market + called a married put the technique is carried out by purchasing a stock and simultaneously buying a put option on that stock + it 's like fire insurance says harrison roth the senior options strategist at <unk> & co + because a put option gives its owner the right but not the obligation to sell a fixed number of shares of the stock at a stated price on or before the option 's expiration date the investor is protected against a sudden drop in the stock 's price + but most investment advisers do n't recommend using married puts all the time + that 's because the cost of buying put options <unk> into an investor 's profit when stock prices rise + this is the type of fire insurance you only buy when the nearby woods are on fire says mr. roth + you always want your house insured but you do n't always feel the need for your investments to be insured + in addition to hedging new stock purchases the <unk> technique can be used to protect stocks that an investor already owns + in either case the investor faces three possible <unk> + if the stock goes up in price between now and the put 's expiration date the put will probably expire <unk> + the investor will be out the cost of the put which is called the premium and this loss will reduce the stock-market profit + if the stock stays at the same price between now and the put 's expiration date the investor 's loss will be limited to the cost of the put less any amount realized from a closing sale of the put + the <unk> scenario would be if the put expires <unk> + if the price of the stock declines the put will increase in value + once the stock price is less than the exercise price or strike price of the put the gain will match the loss on the stock dollar for dollar + the put <unk> a minimum selling price for the stock during its life + when a stock falls below the put 's strike price the investor simply sells the stock at a loss and simultaneously sells the put at a profit + or the investor can exercise the put by <unk> the stock to his or her broker in return for payment from another investor who has sold a put on the same stock + brokers handle such transactions through the options clearing corp. which guarantees all option trades + the accompanying table shows how this strategy would work for three stocks + though not reflected in the table an investor should know that the cost of the option insurance can be partially offset by any dividends that the stock pays + for example tenneco inc. pays a quarterly dividend of N cents which would be received before the february option expires and thus reduce the cost of using the technique by that amount + in this case the investor 's risk would n't exceed N N of the total investment + to <unk> the calculations commissions on the option and underlying stock are n't included in the table + there are more than N stocks on which options may be bought and sold including some over-the-counter stocks + but some investors might prefer a simpler strategy then hedging their individual holdings + they can do this by purchasing index puts which are simply put options on indexes that match broad baskets of stocks + for instance the most popular index option is the s&p N option commonly called the <unk> + it is based on the stocks that make up standard & poor 's <unk> index + unlike options on individual issues index options are settled only in cash and no stock is ever tendered + but while index options are convenient they have several <unk> + for one thing an investor 's portfolio might not closely match the s&p N + as a result the <unk> insurance may or may not fully protect an investor 's holdings in the event of a market decline + in addition <unk> options were suspended from trading last friday afternoon after the stock-market sell-off got under way and trading in the <unk> futures contract was halted + so an investor who wanted to realize a profit on <unk> puts after the trading suspension would have been out of luck + on the other hand only a handful of individual issues were suspended from trading on friday + normally once the underlying investment is suspended from trading the options on those investments also do n't trade + ultimately whether the insurance provided by purchasing puts is <unk> depends on the cost of the options + that cost rises in times of high market volatility + but it still might be cheaper than taking a major hit + the protection from using married puts is clearly superior to that <unk> by another options strategy some investors consider using during troubled times selling call options on stocks the investor owns + a call option is similar to a put except that it gives its owner the right to buy shares at a stated price until expiration + selling a call option gives an investor a small buffer against a stock-market decline + that 's because it reduces the cost of the stock by the amount of premium received from the sale of the call + but if the price of the stock rises above the strike price of the option the stock is almost certain to be called away + and in that case the investor misses out on any major upside gain + these calculations exclude the effect of commissions paid and dividends received from the stock + all prices are as of monday 's close + hopes for quick enactment of pending deficit-reduction legislation faded as efforts to streamline the house version in advance of a house-senate conference broke down + house leaders had hoped to follow the senate 's lead by getting an agreement from house committee chairmen under which they would drop items that would n't reduce the fiscal N budget deficit from the house-passed bill before the negotiations with the senate began + but the effort became <unk> on the question of what would become of other issues ranging from cutting the capital-gains tax to child care to repeal of <unk> insurance + many members feel there are important features of the house bill that should be enacted speaker thomas foley d. wash said + if there is any support for reducing the bill it is <unk> on their desire to see them passed in another form + now those items will be discussed in a house-senate conference which could begin as soon as today with the expectation that they could either be resolved there or placed into other legislation + you 've got to give these chairmen the opportunity to see if they can work things out said house budget committee chairman leon <unk> d. calif + this is a democratic process you ca n't <unk> anything around here + white house budget director richard darman has said he would continue to press to keep the capital-gains provision in the final version of the bill unless the house drops many of its costly provisions + senate leaders had hoped to be able to send a compromise version of the measure to president bush by the end of the week but speaker foley said that was n't likely + failure to pass the bill meant that $ N billion in across-the-board spending cuts took effect monday under the gramm-rudman budget law + the bill must be enacted before the cuts can be restored + trading volume in standard & poor 's N stock-index futures contracts on the chicago mercantile exchange monday totaled N contracts + yesterday 's edition incorrectly reported monday 's trading volume as a record for the s&p N contract + ncnb corp. raised $ N billion in new capital during the third quarter + in yesterday 's edition the amount of new capital was misstated + mccormick capital inc. said its tender offer to buy back as many as N million or N N of its common shares at $ N apiece which expired friday evening was oversubscribed + the developer and manager of <unk> limited partnerships said preliminary results indicate that about N shares had been tendered giving a preliminary <unk> factor of N + the final <unk> factor will be announced monday + <unk> exploration ltd. said it is proposing to <unk> four of its associated companies + under a proposed <unk> <unk> involving share swaps abm gold corp. a gold exploration and management company will merge with <unk> resources corp. united gold corp. and <unk> resources inc + abm will also increase its stake in <unk> gold corp. to N N from N N + <unk> said it will own about N N of the equity and N N of the votes of abm after the <unk> + the <unk> are subject to regulatory approval and require approval by shareholders of abm <unk> united and <unk> at special meetings on nov. N + steven c. walker senior vice president of this bank holding company was named president chief executive officer and a director of both commercial national and commercial national bank + he succeeds james e. burt iii who resigned from all three posts to pursue other interests + cincinnati microwave inc. said it introduced two radar detectors + one unit called the <unk> uses a new digital <unk> technology to detect radar signals much sooner than was previously possible the company said + the other called the solo is battery operated and is the first <unk> radar <unk> that does n't need a power <unk> the company said + a surprising surge in the u.s. trade deficit raised fears that the nation 's export drive has stalled and caused new turmoil in financial markets + the merchandise trade deficit widened in august to $ N billion the commerce department reported a sharp deterioration from july 's $ N billion and the largest deficit of any month this year + exports fell for the second month in a row while imports rose to a record + this is one of the worst trade releases we 've had since the dollar <unk> out in N said <unk> dennis chief international economist at james capel inc + like most analysts mr. dennis was <unk> to read too much into one month 's numbers but he said it indicates perhaps that the balance in the u.s. economy is not as good as we 've been led to believe + the number had a troubling effect on wall street suggesting that more fundamental economic problems may <unk> last friday 's stock market slide + the dow jones industrial average tumbled more than N points after the report 's release before recovering to close N points lower at N + this bad trade number raises some deeper issues about the market decline said norman robertson chief economist for mellon bank + it raises questions about more <unk> problems the budget deficit and the trade deficit and the <unk> lack of ability to come to <unk> with them + the trade report drew yet another <unk> parallel to october N + on oct. N of that year the announcement of an unusually large august trade deficit helped trigger a steep market decline + the slide continued until the record <unk> market drop on oct. N + in N however the news was the latest in a string of disappointments on trade while the current report comes after a period of improvement + the bleak trade report was played down by the bush administration + commerce secretary robert mosbacher called the worsening trade figures disappointing after two very good months + and white house spokesman marlin fitzwater said the deficit was an unwelcome increase adding that we 're hopeful that it simply is a <unk> situation and will turn around + but the figures reinforced the view of many private analysts that the improvement in the u.s. trade deficit has run out of steam + the figures today add further evidence to support the view that the improvement in the u.s. trade deficit has essentially stalled out at a level of about a $ N billion annual rate said jeffrey scott a research fellow at the institute for international economics here + that 's still an improvement over last year but it leads one to conclude that basically we 've gotten all the <unk> we can out of past dollar depreciation and past marginal cuts in the federal budget deficit + exports declined for the second consecutive month in august slipping N N to $ N billion the commerce department reported + imports on the other hand leaped N N to a record $ N billion + not only was august 's deficit far worse than july 's but the government revised the july figure substantially from the $ N billion deficit it had initially reported last month + many economists contend that deep cuts in the u.s. budget deficit are needed before further trade improvement can occur + that 's because the budget deficit feeds an enormous appetite in this country for both foreign goods and foreign capital overwhelming the nation 's capacity to export + people are sick and tired of hearing about these deficits but the imbalances are still there and they are still a problem said mr. robertson + in addition the rise in the value of the dollar against foreign currencies over the past several months has increased the price of u.s. products in overseas markets and hurt the country 's competitiveness + since march exports have been virtually flat + at the same time william t. <unk> international vice president at the u.s. chamber of commerce notes clearly the stronger dollar has made imports more attractive by causing their prices to decline + most economists expect the slowing u.s. economy to curb demand for imports + but they <unk> little substantial progress in exports unless the dollar and the federal budget deficit come down + the best result we could get from these numbers would be to see the administration and congress get serious about putting the u.s. on an internationally competitive economic footing said howard lewis vice president of international economic affairs at the national association of manufacturers + that must start with cutting the federal budget deficit + august 's decline in exports reflected <unk> in sales of industrial supplies capital goods and food abroad and increases in sales of motor vehicles parts and engines + the jump in imports stemmed from across-the-board increases in purchases of foreign goods + the numbers were adjusted for usual seasonal fluctuations + alan murray contributed to this article + in billions of u.s. dollars not seasonally adjusted + \* newly industrialized countries singapore hong kong taiwan south korea + steve jobs took a step back from the <unk> of personal-computer technology in an effort to spur sales of next inc. 's new machine + mr. jobs moved to remedy a couple of his computer 's <unk> yesterday by lowering the <unk> price for a next machine by $ N or N N if the buyer chooses a hard-disk drive as an alternative to next 's <unk> device + the hard drive which is the storage device of choice for virtually every desktop computer user also now will supplement next 's <unk> optical device if buyers pay full price + mr. jobs <unk> of apple computer inc. founded next four years ago in the hopes of <unk> a revolution in the way desktop computers are designed and used + his next computer introduced about a year ago and aimed primarily at university computer users sports <unk> graphics digital sound <unk> <unk> and a <unk> black design + but the computer was proving a hard sell because of its high price a lack of software and an optical <unk> device that was too slow + the machine began shipping at the end of last year + the closely held company has n't disclosed sales + however most universities that have bought the machines say they are buying small numbers for evaluation purposes + universities can now buy a next computer without an optical storage device for $ N + a computer with the optical device will still cost $ N but from now on next will outfit every computer with a hard drive and supply one at no cost to those who have already bought next machines + commercial customers can purchase the same system through businessland inc. a computer retailer based in san jose calif. for roughly $ N more + mr. jobs said the changes were prompted by requests from customers who are frustrated with the performance of the optical device which is n't offered as standard equipment by any rivals + another factor was that customers were asking why do n't you give us a cheaper system mr. jobs said at a conference on university computing here + <unk> devices can handle very large amounts of data and make it far easier to <unk> film <unk> or audio <unk> with a computer + but the technology while <unk> is far slower than the widely used hard drives + to get around the delays caused by the optical device businessland which is next 's exclusive dealer to corporations has for months been advising customers to purchase hard drives with the machines + next 's decision to rely on the <unk> hard drive in every next computer does n't signal a retreat from optical storage said mr. jobs who for years has said this technology will play a crucial role in the next decade + we 're extremely committed to optical storage technology he said + we think everything will go this way in a few years + he said that the next generation of optical drives will be as fast as hard drives but he depends on outside suppliers for the devices + but university computer specialists who welcomed the move called it a necessary retreat from the cutting edge of technology and one that 's likely to increase next 's sales on <unk> + from the standpoint of being on the <unk> of technology this is a step <unk> said jerry w. <unk> a senior computing manager for the california state university system + but it will definitely boost next 's sales + universities however say next 's prices must go even lower before large numbers of students purchase the machine + we 'd still like to see a student model priced at about $ N said ronald johnson director of academic computing at minnesota 's <unk> <unk> college which has bought eight next machines + broad acceptance of next 's computer also is <unk> by difficulty in distributing software for it + most software is distributed on cheap <unk> disks but the next computer does n't come with a device that reads them + next 's computer also needs more software applications but mr. jobs said he expects more soon + he said he expects lotus development corp. to introduce a next version of its popular N <unk> program in N + educators added that next needs to soon offer a color version of its computer + every major maker offers computers with color displays + next wo n't comment on when it will do the same but is believed to have a color model under development + donald j. <unk> N years old was named president and chief operating officer of this owner and operator of hospitals nursing centers and retirement hotels + he succeeds as president don <unk> who remains chairman and chief executive officer + the position of chief operating officer is new + <unk> corp. reported a net loss of $ N million or N cents a share for the third quarter which was <unk> by severance costs and the expense of upgrading its <unk> software inventories + the software company said revenue slid N N to $ N million + this contrasts with the year-ago quarter when the company had net income of $ N million or N cents a share on revenue of $ N million + for the nine months <unk> had a loss of $ N million or $ N a share + in the year-ago period the company had profit of $ N million or $ N a share + revenue in the period slid almost N N to $ N million from about $ N million last year + edward m. <unk> chairman president and chief executive officer attributed the decline to reduced domestic revenue because of $ N million spent to upgrade existing software inventories to the new <unk> <unk> version N and $ N million spent on the recent reduction in work force + he said the company was encouraged by <unk> it received from selected customers now testing version N + the red ink came as no surprise to wall street but analysts said they saw <unk> hints of a further delay in volume shipments of version N a <unk> of continued losses in the fourth quarter + the loss is in line with our expectations said john c. maxwell iii an analyst with dillon read & co. in new york + he added gross margins and operating profit eroded quite dramatically from the prior quarter along with sales of existing software product lines like <unk> and <unk> + the success of a new product in the <unk> line is needed + and while the company has n't made a <unk> statement it now looks like that 's not going to be anytime soon mr. maxwell said + the company said in a statement that it expects to ship new products during the next two quarters + it now looks like <unk> <unk> version N is n't going to be widely available until the first quarter of N said david <unk> an analyst with montgomery securities in san francisco + this is the second delay now in getting the product out the door + it does <unk> the pain somewhat + mr. maxwell said unless the company can start shipments of the new product sometime this quarter the fourth-quarter loss is likely to be comparable to the third quarter 's + if the company can start to ship during this quarter it could stem some if not all of the red ink he said + in national over-the-counter trading <unk> closed yesterday at $ N a share up N cents + tuesday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N days + N N standard conventional fixed-rate mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + <unk> corp. reported that third-quarter net income fell N N from a year-earlier quarter helped by a gain from discontinued operations + profit from continuing operations rose N N + the chemicals and insurance company said net in the latest quarter was $ N million or N cents a share + in the year-earlier quarter net was $ N million or N cents a share + the <unk> quarter included $ N million from businesses spun off as <unk> industries inc + revenue was $ N million up N N from $ N million a year ago + <unk> said pretax profit from its insurance segment excluding investment gains rose N N in the latest quarter to $ N million from $ N million + in the chemicals segment pretax profit rose N N to $ N million from $ N million + the company 's chemicals interests include among other things petroleum <unk> pharmaceuticals <unk> and <unk> used by the semiconductor industry + for the nine months <unk> said net fell N N to $ N million or $ N a share from $ N million $ N a share a year ago + net in the latest period included $ N million from discontinued operations and a charge of $ N million from a plant closing + in the year-ago period net included $ N million from discontinued operations + revenue was $ N billion up N N from $ N billion a year earlier + in new york stock exchange composite trading <unk> closed at $ N a share up N cents + tribune co. helped by a hefty boost in performance at its broadcasting and entertainment operations said net income jumped N N in its third quarter ended sept. N on a N N increase in revenue + the broadcasting and newspaper concern based in chicago said net was $ N million or N cents a primary share up from $ N million or N cents a share + per-share figures this year reflect $ N million in <unk> dividends the N quarter did n't have such a payout + revenue rose to $ N million from $ N million + nine-month net climbed N N to $ N million or $ N a primary share from $ N million or $ N a share + nine-month per-share figures for N reflect $ N million in preferred dividends that had no counterpart in the year-earlier quarter + revenue rose N N to $ N billion + in new york stock exchange composite trading friday tribune closed at $ N down $ N + enserch corp. said about N million or N N of the publicly traded units of its limited partnership enserch exploration partners ltd. were tendered in response to an offer that expired monday + enserch said the tendered units will raise its ownership of the partnership to more than N N from N N + about N units will continue to be publicly traded on the new york stock exchange enserch said + enserch had offered one-half a share of its common and $ N in cash for each unit + the public sector borrowing requirement the most widely used measure of britain 's government deficit or surplus showed a deficit of # N million in september compared with a deficit of # N million in august and a deficit of # N billion in september N the treasury said + in the six months since the current fiscal year began april N the surplus totaled # N million compared with a surplus of # N billion in the year-earlier period + the government is projecting a # N billion surplus for the fiscal year + the reported figures for the public sector borrowing requirement include receipts from the sale of state-owned industries + excluding those receipts the government deficit would have totaled about # N billion in the first six months compared with # N billion a year earlier the treasury said + french <unk> production in september was N metric tons unchanged from a year earlier according to the national steel manufacturers ' association + the association said the september total brought french output for the first nine months this year to N tons up N N from a year earlier + prospect group inc. whose recent hostile tender offer for recognition equipment inc. failed for lack of financing apparently has gained a measure of control over the troubled company anyway + as part of what a recognition spokeswoman termed an <unk> agreement prospect group will wind up with control of top management posts and an increased stake in the maker of data management equipment + in a management restructuring thomas l. ringer resigned as chairman chief executive and a director while israel <unk> resigned as a director + mr. <unk> remains as executive vice president + thomas m. <unk> and robert a. <unk> who had been designated to take over recognition 's top spots had prospect 's tender offer succeeded were named co-chief executives and directors + mr. <unk> was formerly a vice president and general manager of an avery international division mr. <unk> was a former group vice president of pitney bowes inc + in addition the agreement calls for <unk> h. <unk> chairman of prospect group 's executive committee to be named chairman of a restructured board that will include four new independent directors + also named to the revised board was thomas a. loose recognition 's senior vice president and general counsel + prospect a new york-based leveraged buy-out firm also agreed to invest $ N million in recognition which in turn agreed to repurchase as much as $ N million of its stock + that would increase prospect 's ownership of the company 's <unk> shares outstanding to N N from N N + under the agreement prospect is permitted to increase its stake in recognition to N N + beyond that prospect said it would n't offer to acquire additional shares for less than $ N a share during the next year or less than $ N a share during the subsequent two years + recognition also said it obtained a commitment from chemical bank and bank of boston to convert an estimated $ N million in bank debt to a new <unk> secured term loan to be repaid through the sale of certain assets + in august recognition said it was in violation of certain terms of its debt agreements with bank lenders because of a $ N million loss for the third quarter ended july N + the company attributed the loss to declining revenue and litigation costs relating to criminal charges against the company and two former executives william g. moore jr. and robert w. <unk> + the former executives were indicted last october on charges of fraud theft and conspiracy related to efforts by the company to win $ N million in postal service contracts + recognition equipment said it expected to put the agreement with prospect to a vote of its stockholders at a special meeting in january + in new york stock exchange composite trading recognition rose N cents to $ N + prospect slipped N cents to $ N in national over-the-counter trading + general motors corp. 's chevrolet division reacting to slow sales said it will offer $ N rebates on its N beretta the <unk> version of its core <unk> line + sluggish sales of the beretta and its <unk> sister car the corsica prompted gm to idle the two plants that build the automobiles for a total of three weeks this month + the corsica and beretta make up the <unk> car line at chevrolet but sales of the vehicles are off N N for the year and fell a steep N N during early october + chevrolet already is offering an $ N <unk> on the <unk> corsica + the latest <unk> is good for all beretta models + chevrolet buyers can take the <unk> or get discount financing at rates ranging from N N on <unk> loans to N N on <unk> loans + stateswest airlines said it submitted an offer to the directors of mesa airlines to acquire the <unk> n.m. carrier + except to <unk> its offer as fair and generous and in the best interests of mesa shareholders stateswest declined to discuss details of its proposal + it also asked mesa to keep the proposal confidential + a mesa official confirmed <unk> of the offer and said directors would meet to consider it + last week mesa rejected a proposal by stateswest to acquire it or merge + stateswest has a N N stake in mesa which operates N <unk> and two <unk> <unk> among N cities in new mexico arizona wyoming colorado and texas + stateswest operates four <unk> <unk> aircraft connecting N cities in california arizona and nevada + the carrier has n't yet turned a profit + the former president of firstsouth <unk> a <unk> arkansas thrift pleaded guilty to conspiring to <unk> the institution 's earnings by <unk> <unk> loan guarantees + roderick d. reed iii who was also chief operating officer of firstsouth could receive a maximum sentence of five years in federal prison and a $ N fine + a sentencing date has n't been set + mr. reed admitted he conspired to <unk> an agreement not to enforce loan guarantees executed by dallas real-estate developers a. <unk> taylor iii and george s. watson both of whom were firstsouth stockholders + neither mr. taylor nor mr. watson have been charged with criminal wrongdoing + by <unk> the <unk> agreement certain transactions with messrs. taylor and watson were entered on firstsouth 's books as loans allowing the thrift to report fees and interest as current income according to the u.s. attorney 's office in little rock ark + the conspiracy was part of an effort by mr. reed to hide firstsouth 's shaky financial condition from federal regulators according to federal prosecutors and regulators + the $ N billion thrift was declared insolvent and closed in december N + firstsouth 's former chairman and chief executive officer howard <unk> is also charged with conspiring to <unk> the agreements with messrs. watson and taylor + mr. <unk> is scheduled for trial jan. N before federal judge stephen <unk> of little rock + i approached <unk> larry gelbart 's new comedy at the <unk> center with considerable <unk> + nothing i assumed would be more <unk> dated than a political <unk> on the iran-contra affair + i had underestimated however both mr. gelbart 's <unk> and the <unk> of scandal in washington + though the play clearly is <unk> around the events of iran-contra it takes in the wide sweep of scandals over the past N years + in fact at one point <unk> chase <unk> mullins a cool carefully <unk> television announcer <unk> a list of a dozen or more scandals of recent years concluding with those affecting the department of housing and urban development and the savings and loan industry + <unk> a congressional hearing is in progress complete with elegant crystal <unk> overhead and a <unk> <unk> of the signing of the constitution in the background + the witness table is center stage and below it the <unk> for the <unk> media in this case <unk> the total news network + not only are there camera operators on all sides but the proceedings are shown on monitors throughout the theater + the <unk> of theater is not entirely <unk> + mr. gelbart clearly feels that all the participants in a congressional hearing the witnesses the lawyers the <unk> and the news media are performers + as the story of <unk> <unk> we learn that the internal revenue service confiscated one of the properties of a foreign financier who owes the government millions in taxes + the man it seems has a <unk> corporation licensed in libya and <unk> in the <unk> + he himself lives in a consecutive series of <unk> houses in a town in switzerland + the property seized by the irs is a hollywood film studio master pictures incorporated <unk> + supposedly the irs will sell off the assets of <unk> but before it can a <unk> irs agent is called into the hospital room of <unk> <unk> the dying head of the central intelligence agency + the <unk> agent <unk> <unk> who as you might guess is being led to the <unk> is ordered to take over the studio + soon the studio is producing a $ N million picture called <unk> the motion picture to <unk> it from <unk> the offensive as well as <unk> the book and <unk> the <unk> + the picture to be made in the central american country of san <unk> is a cover for sending $ N million of arms to los <unk> the rebel group attempting to regain neighboring <unk> which has been taken over by the leftist dictator dr. <unk> a former <unk> who leads a revolutionary band of foot soldiers + the man handling all this for the <unk> <unk> is major <unk> battle mr. gelbart 's stand in for col. oliver north + director michael <unk> has assembled a <unk> cast to carry out the <unk> of well-known political figures and to play the stock characters who invariably show up at congressional hearings + daniel von <unk> is <unk> but totally assured as major battle <unk> just the right brand of <unk> and <unk> jeff weiss is fire <unk> and <unk> <unk> as the <unk> senator who serves as a friendly <unk> of major battle <unk> <unk> is <unk> <unk> playing a succession of lawyers joseph daly has the perfect <unk> <unk> <unk> of george bush in his portrayal of the vice president and ann mcdonough is <unk> as a succession of witnesses ' wives + with one she is pregnant with major battle she is <unk> an american flag and as the vice president 's wife she <unk> in with white hair wearing a tailored suit and <unk> <unk> barbara bush 's gestures down to the last detail + though it 's clear that mr. gelbart 's <unk> do not lie with the far right it 's also true that he is <unk> in <unk> his <unk> <unk> taking sharp aim at senators and congressmen of all <unk> and particularly at the media + mr. gelbart also has fun with language + <unk> is <unk> a play on words and mr. gelbart plays that game as well as anyone + he describes a <unk> <unk> as one who experienced a <unk> disappearance and found himself handling blanket appeals at the bureau of indian affairs + this interest in words goes beyond <unk> and <unk> however + mr. gelbart <unk> the <unk> the <unk> and the <unk> of language he sees on all sides + as the hearings begin the <unk> sen. <unk> jerome <unk> <unk> let me <unk> one thing at the outset we are not looking for <unk> to skin nor <unk> to <unk> + major battle himself speaks in pure <unk> without further <unk> aid scores of <unk> freedom <unk> who had gone way out on their life and <unk> for us were literally cut off at the <unk> without a <unk> + at another point he <unk> publicity is a small price to pay for <unk> + the evening is short N minutes without an <unk> but even so as the play <unk> the thrust of mr. gelbart 's <unk> loses its <unk> as his targets pop up ever more predictably + most of the evening though is filled with rare and welcome <unk> + in <unk> mr. gelbart has provided us not just one but two commodities that have all but disappeared from the broadway theater sharp political <unk> and an even sharper appreciation of the value of language + the federal national mortgage association set up a <unk> office of the chairman and elected james a. johnson as vice chairman effective jan. N + mr. johnson has been a managing director at shearson lehman hutton since N and before that was president of public strategies a washington consulting firm + he is well-known in democratic circles having been executive assistant to vice president walter <unk> and chairman of mr. <unk> 's N presidential campaign + at fannie mae he will take responsibility for the corporation 's financial and legal areas and will work with david maxwell chairman and chief executive officer and roger <unk> president and chief operating officer on strategic planning + mr. johnson N years old has been a consultant on strategy to fannie mae for the past N N years + in an interview he said fannie mae faces a number of challenges with the restructuring of the thrift industry and the push to broaden its activities overseas + there 's no shortage of major things to do he said + fannie mae also said james a. <unk> chairman of first federal of michigan and a director since N moved up the date of his retirement from the board to accommodate mr. johnson 's election as a director + the board has N members elected by holders and five presidential <unk> + fannie mae a federally chartered <unk> corporation operates a secondary market for mortgage loans buying loans from lenders packaging some into securities for sale to investors and keeping the rest in its portfolio + the new crowd by <unk> <unk> ehrlich and barry j. <unk> little brown N pages $ N describes the <unk> of the old our crowd jewish wall street banking <unk> by such new business <unk> as saul steinberg carl icahn sanford <unk> and bruce <unk> + its many <unk> stories include the <unk> holiday <unk> <unk> + these two new crowd families lived in the same apartment building with the <unk> <unk> <unk> on top of the gutfreund <unk> + the <unk> <unk> started up from the gutfreund landing and susan gutfreund used to turn off its light to give the impression that there was no higher floor + eventually mr. <unk> broke his <unk> in the dark + then the <unk> determined to put up a <unk> christmas tree weighing a quarter of a ton to <unk> their holiday guests + for this a crane needed to be mounted on the <unk> ' <unk> + the <unk> did not give permission + but the gutfreund workers went ahead anyway only to be captured in <unk> by joan <unk> who called the police + before the <unk> finally left this unfriendly environment for a <unk> <unk> on fifth avenue and an <unk> mansion with a specially <unk> $ N million garage in paris the <unk> had obtained an injunction to prevent any future <unk> of trees and in a <unk> spirit hit both the <unk> and the building with a $ N million lawsuit + nothing less it seemed could <unk> them for their <unk> + where had all the money come from + the young john gutfreund had been discovered by <unk> salomon of salomon bros. when he was still a <unk> liberal and put to work as a trader and then as a <unk> <unk> + get off your he would <unk> say the authors + rising in the firm he became powerful and <unk> though his new wife susan made him <unk> in the <unk> columns with her <unk> spending habits and flamboyant <unk> + after he had been head of the company for N N years he and his partners sold it to <unk> a powerful commodity trading outfit for $ N million in <unk> stock + limited partner <unk> salomon whose family name had been on the firm 's door for N years and who had hoped it would be there forever was not <unk> + mr. gutfreund collected $ N million while <unk> salomon got $ N million much less than if he had conducted the sale + i felt <unk> he later said + worse salomon 's timing had been off + its profits unlike <unk> 's soared over the next two years and had it held out salomon could have gotten an even bigger <unk> + the book also <unk> the not <unk> <unk> surrounding the changing of the guard at lehman bros. and other grand old firms + often the <unk> conservative <unk> investment bankers were <unk> by crude traders when angered he <unk> so <unk> that his face <unk> and his <unk> eyes narrowed into tiny <unk> the authors say of lehman 's lewis <unk> + the earlier generation of our crowd bankers <unk> <unk> <unk> <unk> and <unk> had stressed above all <unk> tradition <unk> and reputation + they were old-fashioned elegant <unk> who happened to be of german jewish <unk> + but in the harsh world of today 's wall street they have lost out to more aggressive and sometimes less <unk> <unk> + the <unk> prefers the <unk> of other birds and <unk> out their eggs + but the old guard hired the new crowd people it brought in its own <unk> + so as the old crowd <unk> from the branch it should n't have been too surprised + the old guard had every right however to <unk> the newcomers ' new ways of making money such as <unk> + a fortune article on saul steinberg was entitled fear and <unk> in the corporate <unk> + their other <unk> has been corporate takeovers often hostile and financed by junk bonds + hostile takeovers are quite a new phenomenon + sometimes they are <unk> but often not + first by making management focus on short-term results they inhibit building for the future just the opposite of japan + second a long-term shareholder of a good company need n't worry too much when the stock price drops temporarily it will bounce back + but if a raider takes over when the stock is weak the shareholder never gets his recovery + the raiders meanwhile have <unk> their own pattern for spending their new millions + as described in the new crowd they take on ambitious new wives move to greenwich conn. or <unk> n.y. buy ok pictures and let their wives share the wealth with <unk> + having donated heavily to <unk> they demand a place on their boards + the book is <unk> about this <unk> <unk> struggle for respectability which has its <unk> aspects + however on balance the charity game helps america + if those who have the money do n't get involved with the <unk> and the charities then city hall will do it badly + it has been <unk> observed that the main thing wrong with tainted money is <unk> ai <unk> enough of it + a handful of the new crowd operators have crossed the line from the <unk> to the illegal and have ended up in the <unk> or paying huge fines + ivan boesky dennis levine martin <unk> victor and steven posner and now michael <unk> and perhaps <unk> helmsley + the <unk> office that ivan boesky vacated for a prison cell had previously contained commodity operators marc rich and <unk> green today <unk> from a potential century apiece of jail sentences + the old crowd is deeply concerned by the backlash from all this + however the phenomenon is not specifically jewish + it has always been true that those outside the club want to climb in and that a few will cut corners in the process + some pretty <unk> stuff built the <unk> families ' fifth avenue and newport <unk> and <unk> their daughters ' <unk> to foreign <unk> + mr. boesky was a <unk> compared to jay gould and jim <unk> and commodore <unk> thought nothing of <unk> judges and legislators + so who knows + in a generation or two some of the new crowd may <unk> true respectability perhaps to be <unk> in turn by a later <unk> of unscrupulous <unk> + or perhaps wall street when it has suffered enough will realize that finance is a service industry and change its <unk> + mr. train is president of train smith investment counsel new york + dallas investor harold c. simmons said he raised his stake in lockheed corp. to N N from N N of the aerospace and electronics concern 's common shares + in a securities and exchange commission filing mr. simmons said he and companies he controls nl industries inc. and nl chemicals inc. hold N shares of lockheed of <unk> calif + they include N shares bought friday for between $ N and $ N each + in composite trading on the new york stock exchange lockheed closed at $ N a share down N cents + earlier this week mr. simmons <unk> to published reports <unk> him as saying he planned to sell his lockheed stake because the defense industry seems to be getting more uncertain + valhi inc. another of mr. simmons ' companies responded to an article monday in the wall street journal which credited a story in the sunday los angeles daily news + valhi said the articles did n't accurately reflect valhi and its affiliates ' intentions toward lockheed + instead valhi said they may increase decrease or retain their lockheed holdings depending on a number of conditions + canada which is preparing to speed up tariff cuts with the u.s. recorded a N N narrowing in its trade surplus with the u.s. in august statistics canada a federal agency reported + u.s. exports to canada jumped N N in august from july while u.s. imports from canada rose only N N + as a result canada 's trade surplus with the u.s. narrowed to c$ N million us$ N million in august from c$ N billion us$ N billion in july + u.s. exports benefited in august from heavy canadian spending on new plant and equipment and a pickup in canadian auto demand canadian officials said + the u.s. and canada which do more trade than any other pair of nations are to meet next month to arrange an acceleration of planned tariff cuts under the <unk> free trade agreement + industries in both countries have requested a <unk> of tariff cuts on hundreds of products + some tariffs were eliminated when the trade pact took effect jan. N + the remainder were to be phased out in five or N annual <unk> with all tariffs eliminated by january N + the two countries aim to reach an agreement by early december on a package of accelerated tariff cuts that would take effect early next year + canadian officials said the trade pact has <unk> an export interest among many small canadian companies that previously had little or no foreign sales + for such businessmen the canadian government is organizing N <unk> this year to u.s. states <unk> on canada + the businessmen are introduced to potential agents and distributors and instructed in trade procedures + the u.s. commerce department is planning to try out similar trips on u.s. businessmen in coming months under its canada first <unk> program + participants in the u.s. <unk> to canada are to be <unk> by members of the service corps of retired executives a volunteer group in dealing with their export challenges + the canadian government also has recently opened new trade offices in san diego san <unk> puerto rico miami princeton n.j. and denver bringing the total number of such canadian offices in the u.s. to N + the u.s. has six trade promotion offices in canada + canada 's export effort has been <unk> by robust home market demand and by an N N appreciation of the canadian dollar against its u.s. counterpart in the past three years that has made canadian goods more costly in the u.s. + canada 's trade surplus with all countries narrowed to c$ N million in august from c$ N million in july statistics canada said + loral corp. said it received a $ N million order from turkey 's ministry of defense the largest contract the company ever has received + loral will provide to turkey an electronic <unk> system for its fleet of <unk> aircraft + the system provides <unk> warning and electronic <unk> <unk> + the defense electronics maker said delivery will begin in october N and run through <unk> + loral said the contract with turkey will provide opportunities for loral to supply that country with other defense systems + crown resources corp. said it reached a definitive agreement to acquire the gold texas resources ltd. shares it does n't already own + under the proposed agreement gold texas holders will receive N crown shares for each of the N million gold texas shares not owned by crown which already owns N N + the arrangement is subject to approval by the supreme court of british columbia province crown said + gold texas is based in vancouver british columbia and crown resources is based in denver + both are mining concerns + apogee <unk> inc. said its board extended until feb. N the exercise period of apogee 's existing stock purchase warrants outstanding + the expiration date had been nov. N + each of the N warrants <unk> the holders to purchase one share of apogee common stock for $ N + apogee was quoted in the over-the-counter market yesterday at $ N bid + bank of new england corp. seeking to streamline its business after a year of weak earnings and mounting loan problems said it will sell some operations and lay off N N of its work force + the bank holding company also reported that third-quarter profit dropped N N to $ N million or N cents a share from the year-earlier $ N million or $ N a share + among its restructuring measures the company said it plans to sell N of its N branch offices and to lay off N employees + altogether employment is expected to decline to less than N from the current level of about N + walter connolly chairman said in an interview that the company expects to record pretax gains of $ N million to $ N million from the sale of its leasing operations and of certain financial processing services + in a prepared statement the company said it expects to realize those gains before year end + nonperforming assets continued to pile up in the latest quarter rising to $ N million or N N of loans and leases from $ N million or N N at the end of the second quarter + some $ N million of the $ N million increase in nonperforming loans was related to real estate and roughly <unk> of that was in the troubled new england market according to richard <unk> vice chairman + mr. <unk> said that despite continued weakness in the region 's real estate market bank of new england expects the rate of increase in nonperforming assets to slow in coming quarters + mr. connolly noted that net third-quarter <unk> at $ N million improved slightly from the $ N million in the second quarter + and he indicated that more substantial improvement is expected in the next couple of quarters + the company increased its loan loss reserve to $ N million from $ N million at the end of the second quarter + total assets slipped to $ N billion from $ N billion as of june N + among other restructuring measures the bank said it will close its loan production offices in chicago new york and philadelphia + the chicago office figured <unk> in the bank 's problems earlier this year when $ N million in loans to chicago businessman william <unk> went sour + in an internal memorandum to employees messrs. connolly and <unk> described the restructuring as an effort to continue <unk> operations assembled during a series of mergers over the past five years + italy 's wholesale price index rose N N in august from july and was up N N from a year earlier the state statistical institute reported + the index registered N in august compared with N in july and with N in august N + the <unk> rise in august was slightly down from the N N rate in july + the index has a base of N set in N and is n't seasonally adjusted + u.s. steel imports in august fell N N from a year earlier to N tons according to the american iron and steel institute + the trade group 's <unk> of commerce department data showed that august imports the second largest monthly total of the year were up N N from july 's N tons but below last year 's high of N tons in june N + august imports claimed N N of the u.s. market compared with N N in july and N N in august N + the latest month 's figures show that imports of steel from european community nations fell to N tons from N a month earlier while imports from japan rose to N tons from N in july + imports from canada rose to N tons in august from N in july + the american institute for imported steel said imports for the first eight months of N were below the level allowed by the voluntary restraint agreement program + the institute said that excluding <unk> steel products <unk> imports represented N N of consumption compared with a permitted maximum of N N + japanese machinery makers received orders totaling N trillion yen $ N billion in august up N N from a year earlier the economic planning agency said + equipment orders on the domestic side were particularly strong in shipping and power utilities said an agency official + the latest report compares with a modest N N increase in july machinery orders from a year earlier + in august soon after wang laboratories inc. reported a staggering $ N million loss and replaced its president two boston sales representatives sent customers a letter saying we fully expect that you will soon be reading stories in the press reporting the amazing comeback at wang + how soon wang will stage a comeback or if it will at all are still matters of debate + but wang salespeople are trying to cope with the biggest challenge any marketer can face selling the products of a company that is on the ropes + if your prospect is feeling risk the whole time and you 're not feeling as if you 're backed up by a stable company you 've lost it before you 've begun says mary ann <unk> a <unk> mass. sales <unk> and consultant who works with high technology companies + it can happen in any industry + consider the difficulties faced by <unk> salespeople when the car was tainted by false charges of sudden acceleration or exxon dealers ' problems in the wake of the <unk> oil spill + like thousands of salespeople before them wang 's are finding ways to combat the bad news + it 's very important that we <unk> confidence even though within the family we know there 's a lot of hard work ahead said richard miller the <unk> mass. computer concern 's new president in a video message to salespeople a month after he took over + wang got into financial trouble because of bloated overhead and overly optimistic sales forecasts + its <unk> minicomputers and word processors have lost ground to cheaper personal computers + last year it funded its high employment by heavy borrowing and it suffered huge losses when sales turned down instead of rising + after the company reported red ink for the fiscal third quarter wang 's marketing department provided the sales force answers to questions such as how could you not have known you were going to lose $ N million and is wang still a viable company + salespeople try to push their products and avoid discussions of finances + responding to such questions is defensive says kenneth <unk> wang 's vice president marketing + that 's <unk> to the art of selling + moreover he notes that analyzing financial results <unk> a problem for a salesman who is n't particularly familiar with a balance sheet + at one sales strategy meeting an executive suggested ordering salespeople to become experts on the annual report + mr. miller vetoed that even i ca n't understand all the <unk> he says + instead he says if the salespeople can get the customers to consider wang 's products on their merits he or a top financial officer will try to <unk> the fears about finances + mike <unk> a salesman in wang 's austin texas office has a <unk> method we tell them $ N billion companies do n't go out of business + we tell them all the major companies are having financial difficulties + numerous computer companies are having sales <unk> and earnings declines but very few have had losses comparable to wang 's or are carrying such a large debt load + mr. miller says that after a sharp sales slump in july and august sales stabilized in september + although wang will report a loss for the first quarter ended sept. N and the full fiscal year mr. miller says he expects the company will return to profitability by the fourth quarter + experts on sales technique say anyone representing a troubled company must walk a fine line + if a salesman <unk> his credibility in this time of trouble it will be a problem for the long run says george <unk> a <unk> nev. sales consultant and author of the marketing edge + still says john sullivan a management <unk> with daniel roberts inc. of boston who has held senior sales positions at polaroid and <unk> the customer will react to strength + ignore the present condition + show it 's business as usual + that is n't easy + wang 's customers are data processing managers who want to be sure that their suppliers are stable <unk> companies that will be around to fix bugs and upgrade computers for years to come + for buyers these are <unk> decisions says jean <unk> who <unk> a network of wang computers in the <unk> department at boston university + the university is considering <unk> a $ N system to store applications electronically + before the really bad news we were looking at wang fairly seriously she says + but their present financial condition means i 'd have a hard time convincing the vice president in charge of purchasing + ms. <unk> adds at some point we 'd have to ask how do we know that in three years you wo n't be in chapter N + during the past year wang has developed new products and a new strategy and hired a new president + wang 's overall product line is still not as good as other vendors but they 've come a long way says steven <unk> a consultant with market researcher gartner group stamford conn + they were on the road to recovery in terms of customer attitudes until this bad quarter happened + the first priority for wang 's sales force is to make sure it holds on to existing customers + wang 's installed base is one of its greatest assets and many of those customers remain extremely loyal + but even before wang 's latest financial troubles surfaced some customers were trying to wall off their wang installations so other departments would n't add wang says chris <unk> a former wang marketer who is now a market analyst with <unk> group a market research firm in stamford conn + one wang salesman who left the company in july recalls that when he tried to sell products to eastman kodak he worked to <unk> support from internal allies but those allies became skeptical as they saw the <unk> + the more recent losses were really devastating + new customers the source of higher commissions for salespeople and the key to wang 's long-term viability are even tougher + rick lynch a former top salesman in wang 's boston office referring to wang 's mainstay computer line says you ca n't sell a <unk> to a new customer + mr. lynch left wang this summer for <unk> systems inc. a software vendor + the financial problems are particularly frustrating for salespeople pushing wang 's image systems which convert paper forms to electronic documents + consultants say that wang 's technology is among the best available in the image market + but salespeople often found that news of wang 's problems <unk> their sales efforts + william <unk> a former sales manager in indianapolis says that his office had all but sold a $ N million image system to pharmaceutical maker eli lilly & co + when they were making the decision all hell broke loose with the finances + he says the lilly executives told him they could n't take the risk with wang + mr. <unk> say he does n't blame lilly + buyers have to rely on a supplier continually upgrading and replacing the product he says + when a company <unk> that it 's hard to go with wang + for mr. <unk> who says he used to earn as much as $ N a year at wang it was one more reason to quit + he is now president of <unk> homes inc. an indianapolis contractor + it can be hard for a <unk> to fight off feelings of <unk> + brian <unk> a former wang salesman in <unk> new york says you have pride in your job + you think you can go out and turn things around + it 's a tough thing when you ca n't + the reason does n't <unk> to your selling skills + <unk> feeds on itself + the problem is if people get down in the <unk> they stop selling says mike <unk> a <unk> sales manager in wang 's austin office + one key for salespeople is to boost their own morale + paul <unk> a <unk> mass. sales and management consultant and author of ready aim you 're hired says the bad news is you 'll be rejected more + the good news is it 's not your fault + so he advises make goals <unk> + for instance he suggests that salespeople making telephone calls should say to themselves all i want to do today is get N <unk> + but mr. miller wang 's new president recently warned his salespeople about <unk> + our customers watch us for the hidden message he said + look a customer right in the eye and say i 'm glad to be at wang + <unk> international enterprises inc. the parent of beleaguered <unk> <unk> robinson & co. said its shareholders approved a previously announced name change to <unk> enterprises inc + the parent company is diversifying into other industries around the world said president <unk> <unk> in explaining the name change + <unk> we talked about <unk> international people thought it was the brokerage house + mr. <unk> said the change was n't related to the brokerage 's recent troubles which have included sharp declines in earnings <unk> with the securities regulators and lawsuits by former customers + the company said it expects the name change to take effect within a week + <unk> corp. said third-quarter net income rose N N on the strength of its chemical business + net was $ N million or $ N a share up from $ N million or N cents a share a year earlier + sales rose N N to $ N million from $ N million + <unk> said its chemical segment had profit of $ N million up from $ N million a year ago largely because of gains in <unk> such as <unk> soda + the company said the gains were tied to volume increases and higher prices + the market for <unk> include the paper <unk> and textile industries + the chemical segment had a $ N million gain on the sale of <unk> and <unk> businesses which was offset by a $ N million charge for future environmental expenditures + profit in <unk> 's defense and <unk> segment rose to $ N million from $ N million + the metals segment hurt by a strike had break-even results against $ N million a year ago + in the first nine months net rose N N to $ N million or $ N a share from $ N million or $ N a share a year ago + sales rose N N to $ N billion from $ N billion + in new york stock exchange composite trading <unk> closed at $ N a share down N cents + gte corp. and mci communications corp. reported strong earnings gains to record levels for the third quarter + southwestern bell corp. and cincinnati bell posted slight declines + gte corp + gte said net income rose N N aided by higher long-distance calling volumes and an increase in telephone lines in service + pretax operating profit from telephone operations rose N N but profits from telecommunications products and electrical products were flat + revenues rose N N to $ N billion from $ N billion + the company said the quarter included a N N increase in <unk> usage for long-distance calling and a N N increase in the number of access lines in service + earlier rate reductions in texas and california reduced the quarter 's revenue and operating profit $ N million a year earlier operating profit in telephone operations was reduced by a similar amount as a result of a provision for a reorganization + revenue in the telecommunications products and services unit rose N N to $ N million but operating profit was unchanged at $ N million partly because of start-up expenses + electrical products ' sales fell to $ N million from $ N million with higher world-wide lighting volume offset by lower domestic prices and the impact of weaker currencies in europe and south america + operating profit of $ N million was unchanged + in composite trading on the new york stock exchange gte rose $ N to $ N + mci communications corp + mci which stepped up efforts to sell long-distance telephone service to residential customers reported a N N jump in earnings + revenue rose N N to $ N billion from $ N billion + operating profit grew N N to $ N million from $ N million while operating margins rose to N N from N N the previous quarter and N N a year ago + daniel <unk> mci chief financial officer said the company sees further improvements in operating margins + we think we can take it to the N N range over next N to N months he said + in national over-the-counter trading mci fell $ N to $ N + charles <unk> an analyst with smith barney harris upham & co. said some investors apparently expected slightly better revenue growth + the company said that residential traffic grew faster than business traffic and attributed that to its new <unk> calling plan that competes with american telephone & telegraph 's reach out america plan + mci claims about N N of the overall long-distance telephone market but just under N N of the $ N billion residential market + it has been trying to improve its share of the residential market + the company wants its business mix to more closely match that of at&t a step it says will help prevent cross <unk> + mr. <unk> said mci recorded another solid cash positive quarter its fourth in a row but declined to comment on whether the company is considering a dividend or is planning any acquisition + the current quarter he said looks fine + we think revenue will continue to grow and that we can control costs and thus improve profitability + southwestern bell corp + southwestern bell corp. said net dropped N N mainly the result of four extraordinary items a franchise tax refund that its southwestern bell telephone co. unit received last year a production shift of several yellow pages <unk> to the fourth quarter from the third a rate refund in missouri and a one-time adjustment to phone company revenues + revenue slipped N N to $ N billion from $ N billion + the earnings drop had been expected + chairman <unk> e. <unk> said southwestern bell 's businesses are healthy and are continuing to grow + the company reported a N N increase in the number of access lines in service and also said its southwestern bell mobile systems unit added N new customers with a current total of about N + southwestern shares fell N cents to $ N in composite trading on the new york stock exchange + cincinnati bell inc + cincinnati bell inc. said net declined N N + the company noted that the year-ago period was particularly strong with an increase of nearly N N + revenue jumped nearly N N to $ N million from $ N million + in composite trading on the new york stock exchange cincinnati bell fell N cents to $ N + the company said that the number of access lines dropped slightly in the quarter a decline attributed to seasonal fluctuations + for the year however access lines in service have increased N N + chairman <unk> <unk> said the company has set a new five year goal of doubling revenues to about $ N billion while steadily increasing net + rockwell international corp. 's <unk> unit said it signed a tentative agreement extending its contract with boeing co. to provide structural parts for boeing 's N <unk> + rockwell said the agreement calls for it to supply N additional so-called <unk> for the planes + these include among other parts each jetliner 's two major <unk> a pressure floor <unk> box fixed leading <unk> for the wings and an <unk> <unk> beam + under the existing contract rockwell said it has already delivered N of the <unk> to boeing + rockwell based in el <unk> calif. is an aerospace electronics automotive and graphics concern + frank <unk> iii was named to this telecommunications company 's board filling the vacancy created by the death of william <unk> last may + mr. <unk> N years old served as defense secretary in the reagan administration + in january he accepted the position of vice chairman of <unk> group a merchant banking concern + shearson lehman hutton inc + thomas e. <unk> N years old was named president and chief operating officer of <unk> co. a <unk> ill. subsidiary of this new york investment banking firm + <unk> which has interests in real estate said the position is newly created + mr. <unk> had been executive vice president of <unk> + in addition to his previous real-estate investment and <unk> duties mr. <unk> takes responsibility for development and property management + those duties had been held by van <unk> N who resigned as an executive vice president + shearson is about <unk> by american express co + great american bank citing depressed arizona real estate prices posted a third-quarter loss of $ N million or $ N a share + a year earlier the savings bank had earnings of $ N million or N cents a share + for the nine months it had a loss of $ N million or $ N a share after earnings of $ N million or $ N a share in the N period + great american said it increased its loan-loss reserves by $ N million after reviewing its loan portfolio raising its total loan and real estate reserves to $ N million + before the loan-loss addition it said it had operating profit of $ N million for the quarter + the move followed a round of similar increases by other lenders against arizona real estate loans reflecting a continuing decline in that market + in addition to the increased reserve the savings bank took a special charge of $ N million representing general and administrative expenses from staff reductions and other matters and it posted a $ N million reduction in expected mortgage <unk> fees reflecting the fact that more borrowers are <unk> their mortgages + arbitragers were n't the only big losers in the collapse of ual corp. stock + look at what happened to ual 's chairman stephen m. wolf and its chief financial officer john c. pope + on a day some united airlines employees wanted mr. wolf fired and takeover stock speculators wanted his <unk> messrs. wolf and pope saw their prospective personal fortunes continue to plummet as shares of ual united 's parent company <unk> $ N on the big board to close at $ N + including monday 's plunge that has given the two executives paper losses of $ N million based on what they would have realized had the pilots and management-led buy-out of ual gone through at $ N a share + when bank financing for the buy-out collapsed last week so did ual 's stock + even if the banks <unk> a financing package at $ N a share the two executives would still get about $ N million less than they stood to gain in the initial transaction + mr. wolf owns N ual shares and has options to buy another N at $ N each + in the $ 300-a-share <unk> that totaled about $ N million + by yesterday 's close of trading it was good for a <unk> $ N million + of course mr. wolf N years old has some savings + he left his last two jobs at republic airlines and flying tiger with combined <unk> gains of about $ N million and ual gave him a $ N million bonus when it hired him + his N salary was $ N with a $ N bonus + the <unk> old mr. pope has n't changed jobs enough at least the right ones to <unk> away that kind of money + united paid him a $ N bonus to lure him away from american airlines and he was paid a salary of $ N last year with a $ N bonus + mr. pope owns N ual shares and has options to buy another N at $ N each + that came to a combined $ N million under the $ 300-a-share buy-out but just $ N million at yesterday 's close + of the combined $ N million the two men were scheduled to reap under the buy-out they agreed to invest in the buy-out just $ N million <unk> many of the thousands of workers asked to make pay concessions so the buy-out would be a success + united 's directors voted themselves and their spouses lifetime access to the friendly <unk> free <unk> travel and $ N a year for life as well + <unk> in a <unk> buy-out they could be <unk> back to coach seats for life + thomas h. johnson president of the <unk> division of mead corp. was named president of manville forest products corp. a manville unit and senior vice president of manville corp + mr. johnson succeeds harry w. sherman who resigned to pursue other interests in both positions + manville is a building and forest products concern + us facilities corp. said robert j. <unk> agreed to step down as vice chairman of the insurance holding company + there was a difference of opinion as to the future direction of the company a spokeswoman said + mr. <unk> declined to comment + in a statement us facilities said mr. <unk> 's employment contract calls for him to act as a consultant to the company for two years + he will also remain a director us facilities said but wo n't serve on any board committees + mr. <unk> will be succeeded on an interim basis by george <unk> us facilities chairman and president + in the same statement us facilities also said it had bought back N of its common shares in a private transaction + terms were n't disclosed + the buy-back represents about N N of the company 's shares based on the N million shares outstanding as of sept. N + in national over-the-counter trading yesterday us facilities closed at $ N unchanged + three leading drug companies reported robust third-quarter earnings bolstered by strong sales of newer <unk> <unk> drugs that provide hefty profit margins + merck & co. reported a N N increase in earnings warner-lambert co. 's profit rose N N and eli lilly & co. 's net income rose N N + the results were in line with analysts ' expectations + merck & co + merck <unk> n.j. continued to lead the industry with a strong sales performance in the human and animal <unk> segment + a stronger u.s. dollar reduced third-quarter and <unk> sales growth N N and N N respectively + international sales accounted for N N of total company sales for the nine months compared with N N a year earlier + sales for the quarter rose to $ N billion from $ N billion + <unk> merck 's new <unk> drug had higher sales than any other prescription medicine has ever achieved in the u.s. in the year following introduction the company said + the drug was introduced in west germany this year + intense competition however led to unit sales declines for a group of merck 's established human and <unk> products including <unk> and <unk> + in new york stock exchange composite trading yesterday merck shares closed at $ N up N cents + warner-lambert co + warner-lambert morris plains n.j. reported sales that were a record for any quarter and the eighth quarter in a row of N N or more per-share earnings growth + spurred by growth in world-wide sales of the company 's prescription drugs warner-lambert said N will be the best year in its history with per-share earnings expected to increase more than N N to about $ N + sales for the quarter rose to $ N billion from $ N billion + <unk> world-wide sales rose N N in the quarter to $ N million u.s. sales rose N N + the segment 's growth was led by sales of the cardiovascular drugs <unk> a <unk> regulator and <unk> a <unk> channel <unk> + world-wide sales of warner-lambert 's <unk> health-care products such as halls cough <unk> <unk> <unk> and <unk> skin <unk> increased N N to $ N million in the third quarter u.s. sales rose N N + <unk> products sales also had strong growth in the quarter + world-wide sales of <unk> gum <unk> breath <unk> and <unk> gum and breath <unk> increased N N to $ N million + warner-lambert shares closed at $ N a share up $ N in big board composite trading yesterday + eli lilly & co + lilly attributed record third-quarter and nine-month results to world-wide gains for pharmaceuticals medical instruments and <unk> products despite poor exchange rates for the dollar that slowed sales abroad + earnings continued to pace sales because of a lower tax rate profit from the <unk> of the debt instrument received from faberge inc. in connection with lilly 's sale of elizabeth <unk> inc. in N and net proceeds from the settlement of patent litigation at lilly 's <unk> inc. unit + third-quarter sales of the indianapolis ind. company rose N N to $ N billion from $ N million + nine-month sales grew N N to $ N billion from $ N billion a year earlier + sales of <unk> an <unk> led <unk> increases + higher sales of pesticides and other <unk> products more than offset a slight decline in the sales of <unk> products to fuel the increase in world-wide agricultural product sales lilly said + advanced cardiovascular systems inc. and <unk> <unk> inc. units led growth in the <unk> systems division + lilly shares closed yesterday in composite trading on the big board at $ N down N cents + <unk> mark chairman of colgate-palmolive co. said he is comfortable with analysts ' estimates that third-quarter earnings rose to between N cents and $ N a share + that compares with per-share earnings from continuing operations of N cents the year earlier including discontinued operations per-share was N cents a year ago + the per-share estimates mean the consumer-products company 's net income increased to between $ N million and $ N million from $ N million the <unk> period + analysts estimate colgate 's world-wide third-quarter sales rose about N N to $ N billion + mr. mark attributed the earnings growth to strong sales in latin america asia and europe + results were also bolstered by a very meaningful increase in operating profit by colgate 's u.s. business mr. mark said + operating profit at colgate 's u.s. household products and <unk> businesses jumped N N in the quarter mr. mark added + he said the improvement was a result of cost savings achieved by consolidating manufacturing operations <unk> two sales organizations and focusing more carefully the company 's promotional activities + the estimated improvement in colgate 's u.s. operations took some analysts by surprise + colgate 's household products business which includes such brands as <unk> <unk> detergent and <unk> <unk> has been a weak performer + analysts estimate colgate 's sales of household products in the u.s. were flat for the quarter and they estimated operating margins at only N N to N N + if you could say their business in the u.s. was <unk> but great everywhere else that would be fine says <unk> austin an analyst with wertheim schroder & co + but it 's not <unk> it 's a real problem + mr. mark conceded that colgate 's domestic business apart from its highly profitable hill 's pet products unit has lagged + we 've done a lot to improve u.s. results and a lot more will be done mr. mark said + improving profitability of u.s. operations is an extremely high priority in the company + to focus on its global consumer-products business colgate sold its <unk> health-care business in N + h. anthony <unk> was elected a director of this company which primarily has interests in radio and television stations increasing the number of seats to five + <unk> also operates <unk> <unk> entertainment properties and small <unk> systems + mr. <unk> is executive special projects at <unk> group holdings inc. which is controlled by manufacturers hanover corp + the boston globe says its newly <unk> pages have a <unk> look with revamped <unk> aimed at making the paper more consistent and easier to read + maybe so if you can find where your favorite writer went + <unk> <unk> who spare no <unk> when taking on local <unk> such as michael <unk> <unk> <unk> or new england <unk> coach raymond rev. ray berry yesterday poured <unk> on new drawings of globe <unk> that replaced old photos in the revamped pages this week + by late last night globe managing editor thomas <unk> <unk> to the will of his troops scrapped the new drawings + for a few days at least he says no pictures or drawings of any kind will <unk> the columns + trouble was nobody thought they looked right + globe columnist mike <unk> in the second attack on his employer in as many weeks <unk> that his <unk> <unk> was so bad it looked like a face you 'd find on a bottle of <unk> <unk> that promises to do away with <unk> in our lifetime + mr. <unk> reminded readers that he still has n't <unk> globe management for questioning a $ N expense <unk> he submitted for parking his car while chasing a story + i thought the drawing a cross between someone you 'd spot <unk> open his <unk> <unk> or a guy who <unk> he 'd been charles <unk> 's <unk> for the last N years he said + mr. <unk> was hardly <unk> to the <unk> of colleagues michael <unk> appears to be a <unk> will mcdonough looks as if he drove for <unk> lincoln or <unk> english whose little girl now <unk> <unk> every time she sees a newspaper + lynn <unk> the globe 's assistant managing editor for design acknowledges that the <unk> were on the low end of the <unk> spectrum + rival boston herald columnist <unk> carr who usually <unk> at <unk> <unk> and <unk> argued that the new drawings were designed to hide mr. <unk> 's rapidly growing <unk> and the <unk> defects of <unk> dan <unk> a globe sports columnist + but think of the money you the reader will save on halloween said mr. <unk> + instead of buying <unk> for your kids just cut out the <unk> ' pictures + deeply <unk> in both the book review <unk> nature <unk> by stephen macdonald leisure & arts sept. N and the books reviewed is the assumption that global warming is entirely a result of human activity + is such a view justified + in the absence of humans would the earth enjoy a constant climate over the long term + clearly not + about N years ago the last ice age ended + enormous ice sheets retreated from the face of north america northern europe and asia + this global warming must have been entirely natural nobody would blame it on a few hundred thousand <unk> hunting <unk> and <unk> around in <unk> + furthermore no bell has yet <unk> to announce the end of this <unk> episode of natural global warming + it is probably continuing and may well account for most of or all of <unk> global warming + i <unk> to no one in my regard for our <unk> heritage but if we are serious about global warming we must look at the big picture and not allow the dominant culture to lock us into the <unk> warming scenario as the sole model for discussion + <unk> <unk> <unk> department university of + the internal revenue service plans to restructure itself more like a private corporation + in addition the <unk> agency says that it will take the unusual step of looking to the private sector to fill two new <unk> positions to guide the <unk> agency a comptroller to oversee daily finances and a chief information officer to update the information system which includes probably the largest computer data base in the world + the irs also said that it would create the position of chief financial officer who will be hired from within the agency + irs commissioner fred t. goldberg said the changes are intended to bring accountability to the agency which has an annual budget of more than $ N billion and <unk> about $ N trillion a year + my assessment and everyone 's assessment is that we do not have the kinds of information that let us <unk> and effectively <unk> and execute our budget mr. goldberg said + and we do n't have internal controls and discipline that we need to have to spend $ N billion properly + mr. goldberg who took over as head of the irs in july has been <unk> by what he considers the <unk> waste and lack of coordination among the branches of the vast federal agency + the irs operates on a computer system designed in N which it has been trying to modernize for years + and the agency which operated throughout fiscal N with a $ N million budget <unk> has been under a hiring freeze since last fall + the new commissioner says that closer scrutiny of how the agency uses its resources will go a long way toward <unk> its ability to collect more tax revenue + i think that you will see a significant improvement in the budget <unk> and execution process which in turn i believe will result in a significant increase in revenue he said + the irs hopes to fill the new positions soon + <unk> it would <unk> career civil <unk> from within the agency but mr. goldberg said he plans to <unk> the world for the chief information officer and the comptroller + although the jobs will probably pay between $ N and $ N a year irs officials are confident that they can attract <unk> candidates from the private sector + you 're telling someone they can spend the next three or four or five or six years of their life bringing about the most difficult and costly modernization of an information system on the civil side ever mr. goldberg said + on the comptroller side you 're developing and making work financial controls governing a $ N billion budget + when <unk> <unk> <unk> the leader of the <unk> coup in panama was buried his body <unk> several <unk> <unk> a <unk> <unk> and broken <unk> and <unk> + they were the signature of his adversary panamanian leader manuel antonio noriega + the rebel officer 's slow and painful death at the headquarters of panama 's <unk> <unk> was personally <unk> by gen. noriega says a u.s. official with access to intelligence reports + leaping into <unk> sinking into <unk> of <unk> and <unk> mr. noriega has put to death some N of his troops involved in the coup according to u.s. officials monitoring <unk> and <unk> <unk> in panama city + he is now changing the place he <unk> every night sometimes more than once a night + his meals are most often prepared by women he trusts his full-time <unk> <unk> <unk> and her mother <unk> + and he is collecting the names of those who <unk> the <unk> to <unk> them during their brief time in control of his headquarters + more enemies to be dealt with + in the two weeks since the <unk> which the u.s. <unk> backed mr. noriega has been at his most <unk> and efficient in maintaining power + yet while the failed coup is a major u.s. foreign policy embarrassment it is merely the latest chapter in a <unk> relationship between mr. noriega and washington that <unk> back three decades + america 's war on the dictator over the past two years following his indictment on drug charges in february N is the <unk> of that relationship + before american foreign policy set out to destroy noriega it helped create him out of the <unk> of panama 's long history of <unk> and <unk> + for most of the past N years the marriage was one of convenience + in N for example when mr. noriega was both a <unk> at an elite military academy in peru and a <unk> for the u.s. defense intelligence agency he was <unk> by <unk> authorities for allegedly <unk> and <unk> beating a <unk> according to a u.s. embassy cable from that period + the woman had nearly died + but u.s. intelligence rather than rein in or cut loose its new spy merely filed the report away + mr. noriega 's tips on emerging <unk> at his school were deemed more important to u.s. interests + from that point on the u.s. would make a practice of <unk> the panamanian 's <unk> + the u.s. has <unk> and later turned against many <unk> but none quite so <unk> + the <unk> mr. noriega is n't as smooth as the shah of iran as <unk> as nicaragua 's <unk> <unk> as imperial as ferdinand marcos of the philippines or as bloody as <unk> 's baby <unk> <unk> + yet he has proved more <unk> than any of them + and out of necessity the u.s. can make mistakes and still hope to remove him from power but a single error on his part could cost him his life + the u.s. underestimated noriega all along says <unk> moss a former ambassador to panama + he has <unk> the art of survival + in keeping with america 's long history of <unk> up mr. noriega recent u.s. actions have extended rather than <unk> his survival + mr. noriega might have fallen of his own weight in N because of panama 's dire economic situation says mr. moss but increasing external pressure has only given him additional <unk> for repression and a <unk> for his own <unk> + if the u.s. had sat back and done nothing he might not have made it through N mr. moss contends + perhaps most important mr. noriega 's allies have intervened to encourage in some cases to demand that the dictator maintain his grip of the <unk> + one colombian drug boss upon hearing in N that gen. noriega was negotiating with the u.s. to abandon his command for a comfortable <unk> sent him a <unk> <unk> <unk> <unk> with his name + he is <unk> says the rev. fernando <unk> who has led catholic church opposition against noriega + the americans have left him without a way out + it is easy to fight when you do n't have any other option + his chief advantage in the fight his intimate knowledge of american ways and weaknesses + mr. noriega often tells friends that patience is the best weapon against the <unk> who have a short attention span and little <unk> for lasting confrontation + the u.s. discovered the young tony noriega in late N when he was in his second year at the <unk> military academy in <unk> according to former u.s. intelligence officials + the contact occurred through mr. noriega 's <unk> a panamanian diplomat based in peru named luis carlos noriega <unk> + luis carlos knowing that helping the americans could advance the career of any panamanian officer <unk> tony 's reports on the leftist <unk> he observed among his fellow students and more important among his officers and <unk> + a spy was born + it was a <unk> experience for the <unk> and slightly built mr. noriega who was known to his friends as cara la <unk> <unk> face + born the <unk> son of his father 's <unk> he was raised on the mean streets of the central market district of panama city + tony was four years older than most of his fellow <unk> and gained admission to the academy because his brother had <unk> his birth certificate + he considered himself <unk> superior to his <unk> <unk> many of whom were <unk> sons sent by their <unk> families to the highly disciplined <unk> academy as a sort of reform school + in his peaked military cap and neatly pressed <unk> uniform noriega felt more respected and powerful than ever in his <unk> life friends from the period say + he had an elegant uniform with gold <unk> in a country where there was a <unk> of <unk> where officers were the elite with special privileges recalls <unk> <unk> a fellow student in peru and a <unk> friend + mr. noriega 's relationship to american intelligence agencies became <unk> in either N or N intelligence officials say + his commanding officer at the <unk> province garrison major <unk> torrijos gave him an intriguing <unk> mr. noriega would <unk> the province 's first intelligence service + the spy network would serve two clients the panamanian government by monitoring political opponents in the region and the u.s. by tracking the growing communist influence in the unions organized at united fruit co. 's <unk> <unk> in <unk> del <unk> and puerto <unk> + united fruit was one of the two largest <unk> to panama 's national income + satisfying its interests was a priority for any panamanian leader + mr. noriega 's initial <unk> was only $ N to $ N a month plus <unk> gifts of liquor or <unk> from the american <unk> a former intelligence official says + it was modest pay by american standards but a healthy boost to his small military salary which fellow officers remember as having been $ N to $ N monthly + he did it very well recalls <unk> <unk> a former panamanian <unk> who managed mr. noriega and his operation + he started building the files that helped him gain power + a national guard job assumed by <unk> noriega in N as chief of the transit police in david city capital of the <unk> province was <unk> for an <unk> <unk> + by <unk> taxi and bus drivers who needed licenses he gained a ready <unk> of information + he knew which local <unk> had been caught driving drunk which had been found with their <unk> + this proved particularly valuable to the panamanian government in N when union leaders were planning a may day march that the government feared could turn violent + mr. noriega had learned that a local union leader was sleeping with the wife of his deputy + so he <unk> the information on <unk> that he distributed throughout the <unk> city of puerto <unk> which was ruled by united fruit co + the campaign so divided union leaders that the government found them far easier to control + it was like a play on broadway recalls mr. <unk> + noriega managed the whole thing + he was <unk> + noriega was an expert at <unk> and <unk> people + during his years in <unk> however mr. noriega also revealed himself as an officer as <unk> as he was <unk> + <unk> <unk> a local lawyer and human-rights monitor recalls an <unk> noriega visiting <unk> in their cells at the <unk> zone garrison headquarters in david where he had his offices + mr. noriega would order them all to take off their clothes and run around the <unk> naked laughing at them and then retreating to his office + people started wondering if something was wrong with him mr. <unk> recalls + but through this period so far as the u.s. military was concerned mr. noriega was a model recruit + he signed up for intelligence and <unk> training under american officers at fort <unk> in panama in july N according to a copy of a N resume with details mr. noriega has since classified as secret + he flew to fort <unk> n.c. in september of that year for a course in psychological operations returning to the school of the <unk> in panama for a <unk> course called military intelligence for officers + some american officers interpreted his eagerness and <unk> as a sign of loyalty but they did so <unk> + he rose to chief of intelligence in panama 's <unk> <unk> in N after providing <unk> dictator torrijos the critical support to defeat a coup attempt against him a year earlier + he became gen. torrijos 's <unk> shadow and the holder of all panama 's secrets + mr. noriega by now a <unk> <unk> expanded his contacts to include the cubans not to mention the <unk> the taiwanese and any other intelligence service that came knocking + when u.s. diplomats complained to the cia of col. noriega 's <unk> intelligence experts always insisted that his <unk> was first to the americans + early on in the state department we took to calling him the <unk> in <unk> to his ability to simultaneously milk the <unk> intelligence services of cuba and the united states recalls francis j. <unk> who as deputy assistant secretary of state for <unk> affairs first ran across reports about mr. noriega in N + some of us <unk> how our intelligence people could put so much stock in his information when he was just as close to the cubans + even at this early stage drugs caused additional concerns + during the nixon administration the drug enforcement administration became <unk> at the extent of the <unk> 's connections to arrested drug traffickers + one <unk> agent drew up a list of five options for dealing with col. noriega one of which was assassination + the head of the <unk> at the time john ingersoll <unk> the assassination plan + but he did fly to panama to <unk> dictator torrijos on the drug ties of panamanian officials including mr. noriega + mr. ingersoll later recalled that gen. torrijos seemed afraid to act on the concerns of the u.s. + everybody was afraid of him mr. ingersoll says + mr. noriega became an even greater threat in N when u.s. intelligence services discovered that he had been buying <unk> of electronically monitored conversations from three <unk> working for the u.s. army 's <unk> military intelligence group + the tapes included <unk> of gen. torrijos 's own phone according to american intelligence officials + we caught him with his hands on our <unk> <unk> says former cia director <unk> turner + for the first time the u.s. considered cutting mr. noriega from its intelligence payroll and the deliberations were intense mr. turner says + in the world of intelligence if you want to get information you get it from <unk> characters + the question is how much you get tied in with <unk> characters so they can <unk> you + intelligence officials to this day worry whether mr. noriega sold sensitive information on the <unk> to the cubans or others + mr. turner was troubled enough to cancel the u.s. contract with the <unk> at the beginning of the carter administration + the u.s. soon found new cause for concern <unk> + prosecutors in southern florida indicted five <unk> on charges of illegally running arms to sandinista rebels trying to <unk> the nicaraguan government of mr. <unk> + they included one of mr. noriega 's <unk> friends and business partners carlos <unk> + and the investigators were quickly closing in on mr. noriega himself + at the time though in N the u.s. was once again <unk> with its longtime latin american spy + mr. noriega made plans to fly to washington for a meeting with his counterpart at the pentagon + <unk> county and federal authorities learning that he intended to fly through miami made plans to arrest him on the <unk> charges as soon as he hit u.s. soil + it was a friday in june + the pentagon <unk> the plan + according to military officers at the time word was passed to mr. noriega by his american hosts that the police would be waiting + on monday u.s. officials received a routine <unk> message from the military group <unk> in panama + due to health reasons <unk> col. noriega has elected to postpone his visit to washington it read + prosecutors in miami received yet another setback + their original indictment against mr. <unk> the friend of mr. noriega and the other four was dismissed on a <unk> + but now along with <unk> mr. noriega 's <unk> they intended to charge mr. noriega himself on allegations that he was involved in the illegal trading of some $ N million in arms + in january N jerome sanford as assistant u.s. attorney was summoned to a meeting with a federal bureau of investigation agent assigned to the bureau of alcohol tobacco and <unk> in miami + panamanian dictator torrijos he was told had granted the shah of iran <unk> in panama as a favor to washington + mr. sanford was told mr. noriega 's friend mr. <unk> would be handling the shah 's security + it would n't be a good idea to <unk> him much less mr. noriega the prosecutor was told + after <unk> from mr. sanford u.s. attorney jack <unk> pleaded with justice department officials in washington to let the indictment proceed + unfortunately mr. <unk> wrote in a letter those of us in law enforcement in miami find ourselves frequently attempting to enforce the laws of the united states but simultaneously being caught between foreign policy considerations over which we have no control + the letter along with a detailed prosecution memo sat on the desks of justice officials for months before the case died a quiet death + i think if we had been allowed to go ahead then we would n't have the problems we have now mr. sanford says + if he had been found guilty we could have stopped him + in august N mr. noriega took over as general and <unk> dictator of panama having <unk> his way to the top only two years after the <unk> death in a plane crash of his old boss <unk> torrijos + soon the military became a <unk> mafia controlling legal and illegal businesses + the reagan administration also put mr. noriega 's <unk> back on the u.s. payroll + payments averaged nearly $ N a year from the u.s. defense intelligence agency and the cia + although working for u.s. intelligence mr. noriega was hardly helping the u.s. exclusively + during the reagan years he expanded his business and intelligence contacts with the cubans and the sandinistas + he allegedly entered into panama 's first formal business arrangement with colombian drug bosses according to <unk> <unk> a pilot who once worked for mr. noriega and who testified before the u.s. grand jury in miami that would ultimately <unk> the panamanian on drug charges + but mr. noriega was convinced the reagan white house would n't act against him recalls his close ally jose <unk> because he had an insurance policy his involvement with the contra rebels in nicaragua + mr. <unk> says the general allowed the contras to set up a secret training center in panama + mr. noriega also <unk> intelligence from his spy operation inside the nicaraguan capital of managua + and on at least one occasion in the spring of N he helped arrange a sabotage attack on a sandinista <unk> in nicaragua + although his help for the contra cause was limited it was enough to win him important <unk> in the reagan administration says sen. patrick <unk> a vermont democrat who then served on the senate intelligence committee + noriega played u.s. intelligence agencies and the u.s. government like a violin he says + an incident in N suggested one additional means by which mr. noriega might have maintained such influence with washington by <unk> u.s. officials + <unk> windsor then the ambassador to costa rica recalls being invited to panama by mr. noriega 's brother luis carlos for a weekend of deep sea fishing and quiet serious conversation on the <unk> peninsula + mr. windsor notified <unk> e. briggs the u.s. ambassador to panama of the invitation + briggs <unk> mr. windsor recalls + he says mr. briggs told him he was being set up for a <unk> trap in which mr. noriega would try to involve him in an <unk> and then record the event with sound and video + mr. briggs on vacation after resigning his position at the national security council could n't be reached for comment + as mr. noriega 's political troubles grew so did his offers of assistance to the contras an apparent attempt to curry more favor in washington + for instance he helped steal the may N panamanian elections for the ruling party + but just one month later he also contributed $ N to a contra leader according to documents released for oliver north 's criminal trial in washington <unk> + yet his political setbacks mounted + mr. noriega was accused of ordering in N the <unk> of hugo <unk> his most outspoken political opponent and the first man to publicly finger mr. noriega on drug trafficking charges + he then ousted president nicholas <unk> <unk> a former world bank official with close ties to the u.s. after mr. <unk> tried to create a commission to investigate the murder + and all the while panama 's debt problems continued to grow + mr. noriega was growing desperate + in late N he made an offer he thought the u.s. could n't refuse + as <unk> in a <unk> that <unk> government documents released for the north trial mr. noriega offered to <unk> the sandinista leadership in exchange for a promise to help clean up noriega 's image and a commitment to lift the u.s. ban on military sales to the panamanian defense forces + north the document went on referring to oliver north has told noriega 's representative that u.s. law <unk> such actions + the representative responded that noriega had numerous assets in place in nicaragua and could accomplish many essential things just as noriega had helped the u.s. the previous year in <unk> up a sandinista <unk> + col. north <unk> the request to his <unk> and to assistant secretary of state <unk> abrams who <unk> it to secretary of state george <unk> + mr. noriega 's proposal was turned down + and mr. <unk> <unk> told mr. abrams that the general should be told that only he could repair his <unk> image + the end of the marriage was at hand + within weeks the <unk> iran-contra scandal took away mr. noriega 's insurance policy + the death of cia director william <unk> and resignation of oliver north allowed <unk> political forces to gain influence + public protests against him were triggered in june N due to charges by <unk> <unk> his former chief of staff that mr. noriega had stolen the N election and had ordered the killing of messrs. <unk> and torrijos + few american officials were willing any longer to defend him + lawyers in miami this time working virtually without <unk> prepared to have him indicted on drug charges in february N + during negotiations with american officials in may N over proposals to drop the u.s. <unk> in exchange for his resignation mr. noriega often asked almost <unk> how the americans whom he had helped for so many years could turn against him + now neither side the u.s. nor mr. noriega has an easy out + president bush has sworn to bring him to justice + mr. noriega believes he has n't any alternative but to continue <unk> to power + it is a <unk> battle perhaps to the death + in the end is mr. noriega the political equivalent of <unk> 's monster created by a <unk> but <unk> foreign power + not quite sen. <unk> contends + for short-term gains people were willing to put up with him + that allowed him to get stronger and stronger he says + i do n't think we created him as much as we fed him <unk> him and let him grow up to be big and strong + upjohn co. reported that third-quarter net income rose to $ N million or N cents a share from $ N million or N cents a share a year earlier + yesterday 's edition provided analysts ' estimates for the company when actual earnings were available + industrial production declined N N in september reinforcing other signs that the manufacturing sector continues its slowing trend + the federal reserve board said output of the nation 's factories mines and utilities expanded at an annual rate of N N in the third quarter substantially slower than the N N annual rate in the second quarter + capital spending and exports which have been the driving force in this expansion are showing clear signs of having the steam taken out of them said robert <unk> economist for northern trust co. in chicago + the new reports of <unk> which were <unk> by an earlier labor department report that manufacturing <unk> dropped by N in september give the fed another reason to further ease its grip on credit and lower interest rates + they need to do something about this said <unk> harris economist at painewebber group inc + the fed also said u.s. industry operated at N N of capacity last month down from N N in august + measures of manufacturing activity fell more than the overall measures + factory output dropped N N its first decline since february after having been unchanged in october + factories operated at N N of capacity the lowest rate in more than a year and down from N N in september + the declines mainly reflected widespread weakness in durable goods those intended to last more than three years + the biggest drop was recorded by primary metals producers a category that includes the steel industry + output of business equipment was unchanged in september + production of factory equipment one indication of the strength of manufacturers ' investment spending fell N N + some economists expect further declines in investment spending + whenever corporate profits are weak that means capital spending is going to soften subsequently mr. harris said + you have n't seen the full effect of that yet + a decline in truck production more than offset a sharp rise in auto <unk> the fed noted + analysts do n't expect the september surge in auto production to be repeated in the coming months + here is a summary of the federal reserve board 's report on industrial production in september + the figures are seasonally adjusted + N N of the N average + robin <unk> president and chief executive officer of this bank holding company was elected to the additional posts of chairman president and chief executive of the company 's new england savings bank subsidiary + william r. <unk> resigned those posts as well as a seat on <unk> 's board + <unk> is also the parent of <unk> + lung-cancer mortality rates for people under N years of age have begun to decline federal researchers report + the drop is particularly large for white males although black males and white and black women also show lower mortality rates + a report in this week 's issue of the journal of the national cancer institute also projects that overall u.s. mortality rates from lung cancer the leading cause of cancer death should begin to drop in several years if cigarette smoking continues to <unk> + the report which comes N years after the u.s. surgeon general issued a report warning against the dangers of smoking is the strongest indication to date that the reduction in smoking is leading to lower death rates from lung cancer + what this is saying is that the surgeon general 's message is having an impact said <unk> <unk> an <unk> at the johns hopkins school of <unk> and public health in baltimore + the national cancer institute report compares mortality rates of two groups of people between the ages of N and N a decade apart + the death rate from lung cancer of white males aged N to N in the mid-1970s was N per N but the mortality rate of the same age group in the mid-1980s was N a decline of N N + measured the same way the decline for black males was N N + the drop in mortality rates for women was less steep N N for blacks and N N for whites + the study by susan <unk> william <unk> and joseph <unk> of the institute 's staff also shows that the <unk> of lung cancer as well as the death rate declined over the decade for all groups in the N age <unk> except black men + although lung-cancer mortality rates are increasing for the nation as a whole the report projects that death rates will begin to decline in the 1990s for men and after the year N for women + lung-cancer mortality rates increase with age and are continuing to rise for all age groups over N with sharp increases for everybody but white men + but dr. <unk> one of the authors of the report said the declining rates we 're seeing for younger people we believe may be a <unk> of declining mortality in the future + however he stressed that the improvement depends on a continued reduction in smoking + even though these favorable trends in lung-cancer mortality affect all sex and race groups they ca n't be taken for granted the report says + smoking prevention programs should reach larger segments of the population especially children <unk> and minorities + an editorial in the <unk> journal says the report of declining lung-cancer mortality among young men and women in the u.s. indicates that we finally may be winning the battle this even in a country where the tobacco industry spends over $ N billion a year for promotion of the <unk> habit of smoking + but the editorial by jan <unk> of the world health organization notes that tobacco consumption and lung-cancer mortality rates are rising in developing countries + <unk> should be established as the <unk> of social behavior around the world the editorial says through the enactment of laws that limit advertising boost tobacco prices and promote <unk> education + asked for comment walker <unk> a vice president of the tobacco institute said new efforts to restrict tobacco advertising in the u.s. could violate the first amendment protection of free speech + according to the american cancer society smoking is responsible for N N of the lung-cancer cases among men and N N among women + the <unk> report attributes the differences in mortality rates by race to different smoking patterns + a higher proportion of black men smoke than white men + while nearly equal <unk> of black and white women currently smoke in both <unk> more whites have given up smoking than blacks + in <unk> changes in mortality rates over the past decade the <unk> study looked only at blacks and whites + <unk> and native americans were n't studied hispanics were included with whites + recent changes in average annual <unk> lung-cancer rates per N population by race and sex + white males + white <unk> + black males + black <unk> + directors elected r. marvin <unk> currently vice <unk> supply purchasing to head the company 's washington d.c. office + as vice <unk> relations mr. <unk> will work with p&g 's top management and with the company 's <unk> staff to represent p&g 's interests at the federal level said john g. <unk> chairman and chief executive officer + mr. <unk> said the appointment recognizes the growing influence of government on our business + mr. <unk> N years old has been with the big producer of household products food and pharmaceuticals for N years + traders trying to profit from the recent volatility in financial markets <unk> the nasdaq over-the-counter market prompting even more swings in stock prices + after gaining strength during a brief <unk> when trading began the nasdaq composite index weakened under selling pressure + the forces at work included computer-guided trading as well as <unk> market makers and institutional investors who had bought stock on the cheap during the recent correction + during the last two hours of trading the composite almost drew even on the day before slipping again + the nasdaq composite closed down N or N N to N + the action was confined to nasdaq 's biggest and most liquid stocks traders said + the nasdaq N index began the day at N lost N N at one point and was up N N at another + the barometer of the biggest <unk> stocks settled at N off N + its counterpart the nasdaq financial index was weak for most of the day sliding N to N by the end of trading + the volatility was dizzying for traders + the market must have turned up and down N different times <unk> <unk> <unk> head of otc trading at kidder peabody + every time you thought it was going into a rally it gave up and every time you thought it would rally it came down + this is a tough market + mr. <unk> said the market is still settling down after the recent correction + most of trading action now is from professional traders who are trying to take advantage of the price swings to turn a quick profit he and other traders said + everybody 's confused and no one has an opinion that lasts longer than N seconds said mr. <unk> + a lot of the professional traders are just going back and forth + they 're just as confused + william <unk> head of otc trading at alex brown & sons in baltimore said program trading is keeping the markets unsettled + he believes that the volatile conditions created by program trading has <unk> confused investors about where the market is headed + program trading is benefiting a few to the <unk> of many and i wish someone would do something about it he complained + trading activity cooled off from monday 's <unk> pace + share turnover <unk> to N million + advancing and declining issues finished about even + of the N stocks that changed hands N declined and N advanced + one big technology issue <unk> rode the roller <unk> + the stock which finished monday at N N traded as high as N N and as low as N N before closing at N N down N + it was a <unk> day for investors in genetics institute + the stock tumbled N N on news that it might have to take a charge against earnings if it ca n't successfully resolve a dispute with its european <unk> <unk> <unk> over its <unk> drug epo + the stock recovered somewhat to finish N N lower at N N + in a statement genetics institute said the dispute with <unk> centers on questions of the <unk> of certain <unk> of epo material valued at $ N million + earlier this week genetics institute reported wider losses in its fiscal third quarter ended aug. N + price co. jumped N N to N on N million shares + the <unk> of cash and carry merchandise reported fiscal <unk> earnings that were better than analysts had expected + the company also pleased analysts by announcing four new store <unk> planned for fiscal N ending next august + that will bring the total for the year to N from five during fiscal N + every year we 've been waiting for <unk> expansion from the company + the news could n't have been better said linda <unk> a dean witter reynolds analyst in an interview + <unk> a maker of optical <unk> devices also reported higher third-quarter earnings + its shares added N to N N + but favorable earnings was n't a guarantee that a stock 's price would improve yesterday + mci communications tumbled N N to N N on N million shares even though the telecommunications giant reported a N N increase in third-quarter profit + <unk> financial slipped N to N N in active trading after reporting that third-quarter earnings improved to $ N a share from $ N a share a year earlier + however the bank holding company 's loan-loss reserves rose to $ N million from $ N million a year earlier + <unk> brands lost N to N + but its <unk> earnings rose to N cents a share from N cents a share last year + capital associates dropped N to N N + the company which leases technology equipment reported substantially lower net income for its fiscal first quarter which ended aug. N + robert m. <unk> N was named president and chief operating officer of this closely held publisher + the post had been vacant for more than a year + mr. <unk> had been executive vice president for operations + in addition ralph ingersoll ii N chairman and chief executive said he would take on additional responsibilities as editor in chief of the company + john <unk> resigned as editor in chief + mr. ingersoll remains editor in chief of the company 's recently launched daily the st. louis sun + also jean b. <unk> N was named executive vice president treasurer and chief financial officer + michael <unk> resigned after less than a year in the posts + ms. <unk> had been executive financial assistant to the chairman + certainly conservative environmentalists can defend their limited government position by <unk> between old environmentalism and new environmentalism journalists and others for saving the planet by david brooks editorial page oct. N + old environmentalism involved <unk> <unk> and <unk> + it started with improvements in <unk> made possible by affordable soap and <unk> underwear during the industrial revolution + then <unk> <unk> pipe and the flush toilet were followed by <unk> and <unk> plants toward the end of the 19th century + medicine in the 19th century was dedicated mostly to <unk> <unk> and diagnostic analysis + then the 20th century saw the evolution of private-sector wonder drugs which <unk> medical therapy + the process dramatically increased our average life <unk> eliminated much pain and constantly improved health and <unk> + most <unk> measures were handled at the local level + new environmentalism probably started in N with the publication of <unk> carson 's book silent spring + shortly thereafter <unk> articles began to appear predicting that advanced industrial <unk> would produce a <unk> <unk> planet possibly by the turn of the century + these <unk> predictions were advanced by such <unk> as paul ehrlich barry <unk> <unk> <unk> and george <unk> + writing in the 1960s ms. carson suggested that the human race could be eliminated in N years and mr. <unk> suggested that life on earth might end by N + mr. ehrlich predicted unprecedented <unk> by N + there were many more + thousands of chemical products were <unk> as <unk> with recommendations that they be banned from industrial use because they produced malignant <unk> in <unk> <unk> + unknown before N were the <unk> effects of acid rain greenhouse warming and ozone depletion all of which required <unk> political power and <unk> expense + meanwhile the new environmentalists <unk> opposed the methods of the old environmentalists + local pollution problems require cheap energy and capital for their solution + but the new environmentalists oppose private wealth creation which they claim <unk> natural resources and nuclear power even though it would <unk> the greenhouse effect + they are in the <unk> of opposing the search for new <unk> and methods of <unk> and even oppose new methods of research such as genetic engineering + new environmentalism is an emotional attack on proven methods of improving our quality of life and a bid for political power + let 's <unk> our priorities by solving pollution problems at the local level as <unk> + harry lee smith <unk> <unk> + your story missed some essential points of the conference on the global environment are we <unk> + first and <unk> the <unk> presented by the various scientists represent a general consensus among specialists working in the respective aspects of the global environment + consider for example the greenhouse effect and climate change numerous <unk> scientific committees including one from the national academy of science judge there is a greater than N N probability of a grave problem in the <unk> + the point was to answer the question in the conference title not to try to create news stories for the event itself + nor was it intended to <unk> a set of <unk> solutions although various points were raised + each speaker was asked to address a specific topic not deliver a point of view + each scientist <unk> concluded society and government are <unk> when it comes to <unk> policy change + this leads to a very special sense of urgency + if the media decide to work harder at <unk> the public about these complex and technical issues that hardly can be termed <unk> journalism + the environment can no longer be a normal issue to be dealt with on a <unk> basis with comfortable <unk> of change + we have literally altered the chemistry and physics of our planet 's atmosphere + this <unk> consequences from what we have already done that will be very <unk> to social and economic systems + the problems of the environment are so <unk> so <unk> <unk> with our current way of life and so large that it is unlikely we will be able to address them effectively unless major changes are made in less than N years + the consensus from the scientific community is that there is sufficient evidence to advise major policy changes + no we are not <unk> + thomas e. <unk> assistant secretary for external affairs <unk> institution + coca-cola enterprises inc. <unk> its dismal earnings forecast for N said its third-quarter net income fell N N on flat revenue + <unk> by higher marketing costs and slowing volume growth the giant coke bottling operation said net fell to $ N million or six cents a share from $ N million or N cents a share the year earlier + the results met estimates of analysts who had already slashed their projections after the company said in late august that its N earnings could tumble as much as N N + a company spokesman said yesterday that coca-cola enterprises <unk> by its N forecast + third-quarter revenue was flat at $ N billion + the year-ago results however included the operations of a bottling business which was sold last december + excluding that bottling business coca-cola enterprises ' volume measured by cases of soda rose only N N + the volume is well below the industry 's N N to N N growth rate of recent years but in line with other soft-drink companies for the third quarter + the latest third-quarter volume also compares with a very strong N N growth in the year-ago quarter + coca-cola enterprises blamed the lower volume on its soft-drink prices which were about N N higher in the third quarter + consumers have been accustomed to buying <unk> at discounted prices for several years + coca-cola enterprises said it had to boost spending for trade and dealer incentives to try to keep volumes from slipping + the company said it expects consumers will adjust to <unk> soft drinks + a spokesman attributed the bulk of a N N increase in selling administrative and general expenses to $ N million to marketing costs + they 're out there promoting like crazy trying to get prices up by promotion said roy <unk> an analyst with kidder peabody & co + for the nine months coca-cola enterprises ' net fell N N to $ N million or N cents a share from $ N million or N cents a share + revenue was flat at about $ N billion + coca-cola enterprises which is <unk> by coca-cola co. also said it <unk> about N million of its common shares during the third quarter + the buy-back is part of a <unk> repurchase plan under which coca-cola enterprises so far has acquired a total of N million shares + separately purchase <unk> pepsico inc. as expected said fiscal third-quarter net rose N N to $ N million or $ N a share from $ N million or N cents a share + sales rose N N to $ N billion from $ N billion + the year-ago quarter 's results include an after-tax charge of $ N million from the sale of a <unk> in spain + in composite trading on the new york stock exchange coca-cola enterprises closed at $ N a share down N cents + pepsico closed at $ N a share up $ N + l.j. hooker corp. is expected to reach an agreement in principle this week to sell merksamer jewelers inc. to management say executives familiar with the talks + l.j. hooker based in atlanta filed for chapter N bankruptcy protection earlier this year + currently its parent company hooker corp. of sydney australia is being managed by a court-appointed <unk> + it is expected that ge capital corp. a financial-services subsidiary of general electric co. will provide much of the funding for the proposed leveraged buy-out of merksamer based in sacramento calif + a spokesman for ge capital declined to comment + ge capital has a working relationship with l.j. hooker + it is providing $ N million in emergency financing to the company and has agreed to buy as much as $ N million in receivables from b. altman & co. and <unk> teller l.j. hooker 's two fully owned department-store chains + sam merksamer chief executive officer of the nationwide jewelry chain and sanford <unk> chief executive of l.j. hooker corp. both declined to comment + currently mr. merksamer owns N N of the company l.j. hooker acquired its N N interest in the firm in may N + at the time the merksamer chain had N stores in operation + today there are N units all located in shopping <unk> + in recent weeks mr. merksamer has approached a number of his suppliers and asked them to provide letters of intent saying they will continue shipping merchandise to the chain following the buy-out say those familiar with the situation + this year a number of retail leveraged <unk> have failed causing jitters among suppliers and mr. merksamer apparently wanted assurances that he wo n't have delivery problems + for the year ended june N N merksamer jewelers had $ N million of revenue and operating profit of $ N million + the <unk> chain was put up for sale in june + according to those familiar with the situation other bidders included ratners group plc of london and <unk> jewelers inc + first boston corp. is advising l.j. hooker on the sale of the merksamer business + merksamer was the first in a series of retail acquisitions made by l.j. hooker + the company was founded in sacramento in N by two brothers ralph and walter merksamer who operated as <unk> 's jewelers + in N the pair split the company in half with walter and his son sam agreeing to operate under the merksamer <unk> name + the sale of merksamer jewelers is subject to approval by judge <unk> <unk> of u.s. bankruptcy court + as earlier reported l.j. hooker this week received a $ N million bid for its three shopping <unk> plus other properties from a consortium led by <unk> real-estate investor jay <unk> and a. boyd simpson an atlanta developer and former l.j. hooker senior executive + the offer which did n't include the merksamer chain is being reviewed by mr. <unk> + robert j. <unk> was named president and chief executive officer of this company 's <unk> corp. unit + mr. <unk> had been president and chief executive of <unk> industries inc + robert h. <unk> previous president and chief executive of <unk> will assume the title of chairman of the unit a <unk> maker + the days may be numbered for <unk> shows featuring <unk> the <unk> kid and the <unk> + nbc a leader in morning prime-time and late night programs but an <unk> on saturday <unk> when children rule the tv set is contemplating getting out of the <unk> business + instead network officials say it may <unk> with shows for an audience that is virtually ignored in that time period adults + there is talk of some revamping and we 're certainly heading in the direction of less and less <unk> said joseph s. <unk> vice president of finance and administration for national broadcasting co. a unit of general electric co + mr. <unk> said that nbc entertainment president <unk> <unk> who declined to be interviewed is looking at options now and may put some things into the schedule by <unk> + he declined to elaborate + nbc 's options could range from <unk> programming to sports shows although the network declined to comment + one major nbc affiliate <unk> in sacramento plans to cancel the nbc saturday morning <unk> as of january and replace it with a local <unk> + the one-hour program will be repeated with <unk> throughout saturday <unk> + we feel there is an opportunity for an audience that is not being served by any network so we want to take the lead says <unk> 's general manager john <unk> + we do n't need <unk> anymore + they only accounted for N N at best of the station 's total revenues + an nbc spokesman says the network will closely monitor the sacramento situation and says it is the only station to <unk> + spokesmen for the television networks of cbs inc. and capital cities\/abc inc. say there are no plans to alter the children 's <unk> on saturday <unk> + the <unk> audience for saturday programming is no longer dependent on the networks + there has been a surge in syndicated children 's shows to independent stations as well as competition from <unk> for kids and from cable outlets such as <unk> and the disney channel + at the same time there appears to be a market for <unk> programming turner broadcasting system inc. 's cable news network has its highest ratings outside of prime time on saturday <unk> + nbc has on previous occasions considered replacing <unk> with a saturday version of today which is produced by nbc news + the network 's own production company nbc productions supplies a half-hour <unk> show titled saved by the bell + nbc productions or nbc news could supply the network with other saturday morning shows a move that would control costs + <unk> shows which are made by outside production companies cost the network about $ N per episode + <unk> & haas co. said third-quarter net income skidded N N to $ N million or N cents a share + in the year-earlier quarter the chemicals company had net of $ N million or N cents a share + sales were $ N million up N N from $ N million a year ago + <unk> & haas which plans to start operating seven new production units this year attributed the profit slide partly to higher start-up expense + the company also cited the stronger dollar which cuts the value of overseas profit when it is translated into dollars + in addition the company said it was hurt by higher than <unk> costs for raw materials though those costs have declined since the second quarter + <unk> higher production of those chemicals which remain in heavy demand also has forced up costs such as overtime pay + for the nine months <unk> & haas net totaled $ N million or $ N a share down N N from $ N million or $ N a share a year ago + sales rose N N to $ N billion from $ N billion the previous year + in new york stock exchange composite trading <unk> & haas closed at $ N a share down $ N + michael a. <unk> N years old was named president and chief executive officer of this manufacturer of industrial robots succeeding walter k. <unk> + mr. <unk> N resigned as president and chief executive and will work on special projects said john j. <unk> chairman + mr. <unk> formerly was president and chief executive of taylor & <unk> inc. and was a director of <unk> robots since N + stephen n. <unk> was named managing director and group head of investment banking in asia based in tokyo + mr. <unk> N years old had been a first vice president in the industrial group in investment banking + he succeeds <unk> <unk> who resigned in may + this is written to correct a <unk> in your oct. N article deaths from advanced colon cancer can be reduced by using two drugs + in this article i was alleged to have said any patient with high-risk colon cancer is really getting short <unk> if he 's not getting this therapy + i did n't say this and i 'm totally opposed to the philosophy expressed by the quote + i have not offered and will not offer routine therapy with the two drugs <unk> and <unk> to any of my <unk> patients + with this treatment we have reduced deaths in high-risk colon cancer by one-third but this leaves the two-thirds who are dying of cancer + this is not nearly good enough + i believe any physician who truly <unk> about cancer patients both today and tomorrow should offer the hope of something better than that + my statement read <unk> from a printed text available to all reporters attending the national cancer institute news conference was the following new clinical trials are already in operation seeking to improve these results + these research <unk> offer to the patient not only the very best therapy which we have established today but also the hope of something still better + i feel any patient with high-risk cancer is getting short <unk> if he is not offered this opportunity + we have very exciting prospects for far more impressive advances in the treatment of colon cancer during the years immediately ahead + this hope however will never be realized if we use <unk> and <unk> as a <unk> point + charles g. <unk> <unk> <unk> clinic rochester <unk> + the oil and auto industries united in their dislike of president bush 's proposal for cars that run on alternative fuels announced a joint research program that could turn up a <unk> gasoline + officials of the big three auto makers and N petroleum companies said they are setting out to find the most <unk> fuel for reducing cities ' <unk> problems with no bias toward any fuel in particular + however their search notably wo n't include natural gas or pure <unk> the two <unk> alternative fuels in tests to be completed by next summer + instead the tests will focus heavily on new <unk> of gasoline which are still undeveloped but which the petroleum industry has been touting as a solution for automobile pollution that is <unk> urban areas + environmentalists criticized the program as merely a public-relations attempt to head off a white house proposal to require a million cars a year that run on <unk> fuels by N + while major oil companies have been <unk> with <unk> gasoline <unk> for years only atlantic richfield co. is now marketing a <unk> gasoline for older cars currently running on <unk> fuel + the initial $ N million research program will conduct the most extensive testing to date of <unk> <unk> said joe <unk> head of fuels and lubricants at general motors corp. research laboratories + it will compare N different <unk> of <unk> with three <unk> of up to N N <unk> + a second phase of research which is still being planned will test <unk> <unk> on newer engine technologies now being developed for use in N or N cars + there was no cost estimate for the second phase + the whole idea here is the automobile and oil companies have joint customers said keith <unk> a senior vice president of technology at amoco corp + and we are looking for the most <unk> way to clean up the air + but david <unk> an environmental lawyer with the natural resources defense council said the research appears merely to be a way to promote <unk> gasoline + oil and auto companies supported a move on capitol hill last week to gut mr. bush 's plans to require auto makers to begin selling <unk> cars by N + instead a house subcommittee adopted a <unk> program that specifically <unk> <unk> gasoline as an alternative + the bush administration has said it will try to <unk> its plan when the house energy and commerce committee takes up a comprehensive clean-air bill + william seidman chairman of the federal deposit insurance corp. said lincoln savings & loan association should have been seized by the government in N to contain losses that he estimated will cost taxpayers as much as $ N billion + mr. seidman who has been the nation 's top bank regulator inherited the problems of lincoln based in irvine calif. after his regulatory role was expanded by the new savings-and-loan bailout law + he made his comments before house banking committee hearings to investigate what appears to be the biggest thrift disaster in a <unk> industry + the inquiry also will cover the actions of charles keating jr. who is chairman of american continental corp. lincoln 's parent and who contributed heavily to several u.s. senators + mr. seidman told the committee that the resolution trust corp. the agency created to sell sick thrifts has studied lincoln 's examination reports by former regulators dating back to N + my staff indicated that had we made such findings in one of our own institutions we would have sought an immediate <unk> order to stop the hazardous operations mr. seidman said + when lincoln was seized by the government for example N N of its loans or $ N million were to borrowers who were buying real estate from one of american continental 's N other subsidiaries according to mr. seidman + but the government did n't step in until six months ago when thrift officials put lincoln into conservatorship the day after american continental filed for chapter N bankruptcy protection from creditors + the bankruptcy filing the government has charged in a $ N billion civil lawsuit was part of a pattern to shift insured deposits to the parent company which used the deposits as a <unk> for real-estate deals + the deposits that have been transferred to other subsidiaries are now under the jurisdiction of the bankruptcy court + i think it 's fairly clear mr. keating knew that regulators were set to seize lincoln mr. seidman said + further investigation he said may result in further actions against lincoln 's executives said mr. seidman including fraud actions + mr. keating for his part has filed suit alleging that regulators <unk> seized the thrift + leonard <unk> an attorney in washington for mr. keating declined to comment on the hearings except to say we will be responding <unk> in several <unk> to each of these allegations at the appropriate time + lincoln 's treatment by former thrift regulators in an agency <unk> by the new law has proved embarrassing for five senators who received thousands of dollars in campaign contributions from mr. keating + mr. seidman said yesterday for example that sen. dennis <unk> d. ariz. who received $ N in contributions from mr. keating <unk> mr. seidman to request that he push for a sale of lincoln before it would be seized + after the government lawsuit was filed against lincoln sen. <unk> returned the campaign contributions + the senator 's spokesman said yesterday that he pushed for the sale of lincoln because hundreds of arizona jobs at lincoln were on the line + senate banking committee chairman donald <unk> d. mich has also returned contributions he received from mr. keating a year ago + sens. john glenn d. ohio john <unk> r. ariz. and alan cranston d. calif. also received substantial contributions from mr. keating and sought to intervene on behalf of lincoln + house banking committee chairman henry gonzalez d. texas said sen. cranston <unk> to appear before the house committee if necessary + but a committee staff member said the panel is unlikely to pursue closely the role of the senators + at the hearing mr. seidman said the rtc has already pumped $ N million into lincoln for liquidity + he also held out little hope of <unk> for purchasers of $ N million in american continental subordinated debt + some of those <unk> have filed a suit saying they believed they were buying <unk> certificates of deposit + we have no plans at this time to pay off those notes he said + eastern airlines ' creditors committee unhappy with the carrier 's plans for emerging from bankruptcy-law proceedings asked its own experts to devise <unk> approaches to a reorganization + representatives of the accounting firm of ernst & young and the securities firm of goldman sachs & co. hired by creditors to <unk> on eastern 's financial plans told the committee in a private meeting yesterday that eastern 's latest plan to emerge from bankruptcy-law protection is far riskier than an earlier one which won the creditors ' approval + according to one person present at the meeting eastern 's new plan is financially overly optimistic + asked about the consultants ' reports an eastern spokeswoman said we totally disagree + she said they have <unk> and made some <unk> assumptions that make their analysis completely <unk> + at a later news conference here frank lorenzo chairman of eastern 's parent texas air corp. said eastern was exceeding its goals for getting back into operation and predicted it would emerge from chapter N protection from creditors early next year operating with more service than it originally had scheduled + he insisted as he has before that creditors would be paid in full under the plan + mr. lorenzo made no mention of creditors ' negative response to his plan + we 're in the process of discussing an amended plan with the creditors and anticipate filing that amended plan shortly mr. lorenzo told reporters + we 're meeting and <unk> our goals he added + in july eastern and its creditors agreed on a reorganization plan that called for eastern to sell $ N billion in assets and to emerge from bankruptcy-law protection at two-thirds its former size + but after selling off pieces such as its east coast shuttle its philadelphia hub and various planes eastern hit a <unk> block + it could n't sell its south american routes one of the major assets marked for disposal + those routes valued by the creditors ' professionals at about $ N million were to be sold to amr corp. 's american airlines + a last-minute <unk> in negotiations with amr over an unrelated lawsuit between american and another texas air unit caused the deal to collapse + eastern ultimately decided it would have to keep and operate the routes itself which would leave it with less cash for its reorganization + it also would leave eastern a bigger carrier than the <unk> one proposed under the initial plan + those changes in its condition meant the reorganization plan previously presented to creditors would have to be revamped + since then eastern has been negotiating with creditors over revisions but the creditors committee has been having problems with the revisions + the committee has two groups of experts it calls on to analyze eastern 's plans + both said the new plan would n't work + ernst & young said eastern 's plans will miss its projections of earnings before interest tax and depreciation by $ N million and that eastern 's plan presented no comfort level according to a source present at yesterday 's session + experts from goldman sachs estimated eastern would miss the same mark by $ N million to $ N million the source said + the experts said they expected eastern would have to issue new debt to cover its costs and that it would generate far less cash than anticipated + other costs also would increase including maintenance because eastern has an older fleet + at the news conference mr. lorenzo and eastern president phil <unk> presented a far <unk> assessment + <unk> by flight attendants pilots and gate agents dressed in <unk> new blue <unk> they said eastern has exceeded its operational goals and is filling its seats + starting next month eastern will begin flying N flights daily instead of the previously announced N they said + mr. <unk> declined to give out eastern 's daily losses but said he did n't expect eastern would have to dip into the cash from asset sales currently held in escrow + these accounts hold several hundred million dollars primarily from asset sales + the plan eastern hopes to pursue he said calls for eastern to have $ N million in cash by year 's end + both he and mr. lorenzo predicted that plan might be confirmed in january + as to negotiations with creditors mr. lorenzo said in remarks after the conference we 'll have to see how they talks come along + however he added it 's not a requirement that the plan be accepted by creditors + it must be accepted by the court + under bankruptcy law eastern has exclusive rights for a certain period to develop its own reorganization plan + that deadline has been extended once and could be extended again + if eastern can get creditor support court confirmation of its plan could be relatively swift + but creditors are free to press for court approval of their own plan or the court could ignore both sides and draw its own + in any event some people familiar with the case question whether the court will act by january as forecast by mr. lorenzo and mr. <unk> + eastern sought bankruptcy-law protection a few days after a <unk> strike began march N + mr. lorenzo told reporters the reorganization eastern is pursuing would create a carrier N N to N N of the size of the <unk> eastern + he projected it would be operating about N flights a day by late spring only slightly fewer than the carrier 's old volume of N a day + hopes of <unk> the corporate minimum tax before N are weakening + the method of <unk> the N N tax paid if it exceeds tax figured the regular way is due for a change in N thanks to N 's tax act + but most experts agree that the concept that is to be introduced <unk> in great <unk> they have been trying to head it off this year + ways and means chairman <unk> backed a <unk> plan in the pending house tax bill but the plan turns out to be a big revenue loser + now the senate 's <unk> bill <unk> any proposal to deal with the corporate tax + proponents of <unk> fear that the chances of getting it into the final bill are <unk> + we hear it has low priority on the house side says samuel <unk> of coopers & <unk> <unk> + if the law is n't changed he says we are left <unk> at rules that are almost impossible to implement because there are so many complex depreciation calculations to do + but congress still could resolve the issue with other legislation this year or next <unk> adds + hugo 's <unk> may be offset by immediate claims for tax refunds + this law aids <unk> <unk> named by the president as disaster areas as well as regions so designated after other N disasters + it lets victims <unk> to <unk> casualty losses on either N or amended N returns whichever offers the larger tax benefit they have until april N to choose + <unk> a N return to claim a refund brings cash faster but for personal losses there are other factors to consider notes publisher prentice hall + a loss after insurance <unk> is deductible only to the extent that it exceeds $ N and that the year 's total losses exceed N N of adjusted gross income victims may pick the year when income is lower and deductions higher + in filing an original not amended return a couple should consider whether damaged property is owned jointly or separately and whether one spouse has larger income that may determine whether they should file jointly or separately + the irs delays several deadlines for hugo 's victims + returns for N from people with six-month filing <unk> were due monday but the irs says people in the disaster areas wo n't be <unk> for late filing if their returns are marked hugo and <unk> by jan. N + interest will be imposed on unpaid taxes but <unk> penalties on the returns will be <unk> if the balance due and paid is N N or less of the liability + irs notice N describes this and other deadline relief for hugo 's victims + among the provisions <unk> taxpayers with returns due last monday wo n't be <unk> if they file or request an extension and pay tax due by nov. N + <unk> returns due by oct. N or nov. N may be delayed to jan. N + <unk> ca n't be granted for filing <unk> returns due oct. N or for <unk> withheld taxes but late penalties will be <unk> for deposits made by nov. N + the notice also grants relief for certain <unk> returns + one-day <unk> in a chartered boat were <unk> for permanent staffers of american business service corp. a costa mesa calif. supplier of temporary workers + the irs denied cost deductions because few of the <unk> got to go aboard + but the tax court said the limitations were reasonable and realistic and allowed the deductions + <unk> buyers who try to avoid sales tax by <unk> prices paid in private deals are the targets of a new york drive + estimating that the state may lose $ N million a year officials announced the filing of N criminal actions and hundreds of civil penalties + when an ira owner dies the trustee of the individual retirement account must file forms N reporting market values relating to the <unk> and each <unk> with copies to the <unk> and beneficiaries + irs revenue procedure N describes the reporting requirements + bigger than a <unk> was this cash <unk> 's reputation for honesty + people often cite <unk> and <unk> of banks to justify cash <unk> to the irs + gregory <unk> brown of <unk> calif. a <unk> <unk> young <unk> told that story to the tax court + but judges usually find the real aim is to escape tax on hidden income and the irs said brown must have had such income although it uncovered no source because he <unk> $ N in a bank account in N while reporting income of only $ N + brown 's story + the deposits came from savings kept in a <unk> <unk> he saved $ N in N by living with family members and <unk> pennies and $ N of secret gifts from his <unk> father who had abandoned the family in N + brown had no proof but testimony of his mother and <unk> about his father and of an <unk> about his honesty and habits satisfied a judge that brown was <unk> and his tale of gifts was possible + the irs offered no evidence of hidden sources of taxable income so judge <unk> rejected its claims + briefs + asked how he made charitable gifts of $ N out of reported two-year income of $ N thomas h. <unk> of <unk> texas told the tax court he had <unk> his income + the court rejected his incredible claims denied his deductions and imposed a negligence penalty + rep. <unk> r. colo. entered a bill to exempt from tax rewards for tips leading to the arrest of violent criminals + <unk> peterson <unk> her bicycle and <unk> up yet another steep rocky path seemingly suitable only for mountain <unk> + after a <unk> climb she is <unk> by a <unk> vista a <unk> of golden <unk> under an <unk> <unk> sky + this place is N miles into the back country a <unk> <unk> for a <unk> but reached by ms. peterson and six others in a mere two hours of <unk> <unk> mountain bikes + this says ms. peterson is what it 's all about + twelve hundred miles away <unk> at a <unk> county calif. state park are among the many who do n't quite share the enthusiasm + this summer speeding bikers were blamed for an accident in the <unk> county park in which a horse spooked on a trail that was closed to bikers broke its leg + the animal had to be destroyed the bikers fled and were never found + in numerous parks near san francisco <unk> have been forced to close trails set up speed <unk> and use radar guns to curb fast and reckless riding + they have even sent <unk> in pursuit of bikers after <unk> and <unk> complained they were being driven from trails + we were being <unk> says steve <unk> trails coordinator of the east bay regional park district + two years ago the district decided to limit the bikes to fire roads in its N <unk> acres + from about N six years ago the number of mountain bikes in the u.s. is expected to grow to N million in N + at least half that growth will have come in the past three years alone + the controversy kicked up by the proliferation of these <unk> <unk> is one of the most divisive <unk> to blow through the national conservation movement in recent memory + bikers many of them <unk> environmentalists <unk> their sport an efficient safe <unk> way to get back to nature while <unk> a right as taxpayers to <unk> on public <unk> + but the bikes ' <unk> numbers safety concerns and fear that they damage fragile <unk> have prompted <unk> from the <unk> to the eastern <unk> to ban them from the back country + key to the issue is that the bikes in <unk> hands can go virtually anywhere and in reckless hands can become vehicles of <unk> + an <unk> <unk> can leap from a dead stop to the top of a <unk> table without losing balance + such skills allow riders to fly down <unk> mountain grades at speeds of up to N miles an hour a <unk> for the <unk> but a nightmare for <unk> <unk> or <unk> + for <unk> <unk> managers across the nation the response is increasingly to shut the gates + the state of california following the lead of some regional parks recently adopted regulations that closed nearly all <unk> <unk> in state parks to mountain <unk> + the move largely <unk> them to roads used by <unk> vehicles + most other states have enacted similar bans + the bikes are unwelcome on trails in national parks + even the u.s. forest service whose <unk> <unk> philosophy permits <unk> vehicles on thousands of miles of its trails across the u.s. has begun to close some <unk> to the bikes including major portions of the popular pacific crest trail which <unk> from california to canada + often these closings come after vigorous <unk> lobbying by conservation organizations the politically potent sierra club among them + sierra has been instrumental in <unk> a number of the california bans + it has been <unk> an <unk> campaign to beat back a proposal pushed by utah bike groups to allow the cycles in federally designated <unk> areas where they are now prohibited + yet sierra 's hard-line stance has created something of a <unk> in the organization which estimates that N N of its N members own mountain bikes + pressure from these members prompted the club recently to soften its <unk> rhetoric it no longer for example <unk> the bikes into the same category as <unk> and other <unk> <unk> vehicles + but the club still insists that public <unk> ought to be closed to the bikes unless studies indicate the bikes wo n't <unk> the environment or other users + i have a mountain bike yet as a <unk> i 've been run off the road by kids <unk> down a fire trail on them says gene <unk> an official at sierra 's headquarters in san francisco <unk> the concerns of many members + people who feel that <unk> should be banned from an area are n't looking at the whole picture complains mark <unk> associate editor of mountain and city <unk> magazine in <unk> park calif + mr. <unk> is among the <unk> of bikers who got their first taste of <unk> as <unk> or <unk> + he says fellow bikers show the same concern for the land that they demonstrated as <unk> many are <unk> that the conservation community would suddenly consider them the enemy + to fight back activists such as mr. <unk> are forming groups to lobby land managers over access issues and <unk> education programs to show that the bikes can <unk> share trails + mr. <unk> 's group concerned <unk> <unk> association mounted petition drives to help keep open certain santa <unk> mountain trails designated for closing + <unk> groups in <unk> idaho michigan and massachusetts have won similar concessions says tim <unk> mountain bike editor of <unk> magazine + these groups have been trying to improve the mountain <unk> 's image in the san <unk> park district where a <unk> was clobbered by a <unk> this summer bikers have formed a volunteer <unk> to help <unk> enforce regulations and to school riders in proper trail <unk> + even <unk> <unk> sierra members concede that N N of all riders cause most of the problems + while some are <unk> riders who simply <unk> regulations much bad riding simply reflects ignorance that can be corrected through education and <unk> pressure says jim <unk> a director of the international mountain <unk> association + i think we 're making progress + few would have <unk> such a furor when a decade ago some <unk> county bicycle enthusiasts created a hybrid bike using fat tires <unk> <unk> and <unk> technology + they wanted a machine that would allow them to <unk> into <unk> <unk> then <unk> to cycles + they got a machine more responsive more stable and in many ways easier to ride than the <unk> racing bikes that then were the rage + when the bikes first entered mass production in N they were dismissed as a fad + last year N N of the N million <unk> sold in the u.s. were mountain bikes + in california a bellwether market they accounted for more than N N of all bike sales + the majority of the bikes never even make it into the high country + city <unk> love them because they shift smoothly in traffic bounce easily over curbs and roll through road glass with far fewer flat tires than racing bikes + <unk> <unk> population N is a <unk> of the sport + by one estimate everyone here under N owns at least one bike + the town is home to the mountain bike hall of fame and it hosts the annual fat tire bike week + this summer the <unk> attracted more visitors than the busiest week of the town 's winter ski season + david <unk> chairman of the fat tire bike celebration <unk> that the bike 's popularity may be a combination of technology and <unk> + the mountain bike feels as comfortable as the <unk> bike you had as a kid but it can do so much more he says + the following issues were recently filed with the securities and exchange commission + canada 's province of <unk> <unk> shelf offering of up to $ N million of debentures + <unk> gas holding co. a subsidiary of <unk> shipping corp. offering of $ N million first preferred ship mortgage notes via merrill lynch capital markets + h.f. ahmanson & co. offering of four million shares of <unk> convertible preferred stock series b. via goldman sachs & co first boston corp. and merrill lynch + shared technologies inc. offering of N million common shares via <unk> van horn & <unk> inc. and oakes <unk> & co + stock-market tremors again shook bond prices while the dollar turned in a mixed performance + early yesterday investors scrambled to buy treasury bonds for safety as stock prices plummeted and fears mounted of a <unk> of friday + but stocks later recovered <unk> most of their early declines + that cut short the rally in treasury bonds and depressed prices moderately below late monday 's levels + the dow jones industrial average down more than N points early in the day finished N points lower at N + long-term treasury issues declined about half a point or $ N for each $ N face amount + the stock market clearly is leading the bond markets said jack <unk> an executive vice president at nikko securities + people are breathing a major sigh of relief that the world did n't end monday morning or yesterday + gold a closely watched barometer of investor anxiety was little changed + the dollar initially fell against other major currencies on news that the u.s. trade deficit surged in august to $ N billion + but the dollar later rebounded finishing slightly higher against the yen although slightly lower against the mark + federal reserve officials sent another signal of their determination to shore up investor confidence + in an apparent attempt to keep a lid on short-term interest rates the fed once again pumped money into the banking system + but the fed move was a small <unk> traders said + fed officials appear reluctant to ease their credit grip any further because a bold move does n't appear necessary several investment managers said + the fed has allowed a key short-term interest rate to decline about <unk> percentage point + the federal funds rate on overnight loans between banks has been <unk> around N N N down from N N previously + although stocks have led bonds this week some traders predict that relationship will reverse during the next few weeks + nikko 's mr. <unk> fears a huge wave of treasury borrowing early next month will drive down treasury bond prices + that coupled with poor third-quarter <unk> comparisons will make trouble for the equity market for the next two to three months he says + but several other traders contend investors have <unk> to junk-bond jitters and that stock prices will continue to recover + they shot the whole <unk> just because the piano player hit a bad note said <unk> <unk> president of <unk> associates inc. referring to the stock market 's plunge friday on news of trouble in financing the ual corp buy-out + in major market activity treasury bond prices fell + the yield on 30-year treasury bonds climbed back above N N ending the day at N N + the dollar was mixed + late yesterday in new york the dollar rose to N yen from N yen monday but fell to N marks from N marks + the consumer news and business channel cable network and u.s. news & world report have formed a joint venture to produce cable program versions of special issues of the magazine + the programs will run on the cable network the sunday evening immediately prior to the release of the special issue of u.s. news & world report + cnbc is a joint venture of the national broadcasting co. a unit of general electric co. and <unk> system corp + advertisers will be offered an advertising package which for a single price will include time on the cnbc program and ad pages in the special <unk> + cnbc will produce six one-hour programs beginning in april N + the first program scheduled in the joint venture is the N <unk> 's guide + other programs and special issues will be based on themes of health jobs personal finance the best colleges and investments + the programs will be written and produced by cnbc with background and research provided by staff from u.s. news & world report + <unk> <unk> + i 've learned the hard way that too much <unk> takes <unk> the next day about nine no wonder i say i drink to your health it certainly is n't to mine + george o. <unk> + <unk> out + those supermarket <unk> make me feel slow because i still have n't seen + bruce <unk> + daffynition + repression <unk> control + <unk> brown + weyerhaeuser co. reported a one-time gain and strong <unk> sales that offset weakness in pulp and paper to fuel a N N jump in third-quarter net income to $ N million or N cents a share + in the N third quarter the forest-products company reported profit of $ N million or N cents a share + sales rose N N to $ N billion from $ N billion + for the nine months the company posted a N N rise in profit to $ N million or $ N a share from $ N million or $ N a share + sales rose N N to $ N billion from $ N billion + results for the N third quarter and nine months include a pretax loss of $ N million from the company 's business improvement and <unk> program and a gain of $ N million on the sale of a subsidiary 's common stock + forest-products operations strengthened in the third quarter while paper operations were dogged by higher costs soft newsprint exports and a strong japanese yen + some competing forest-products firms have recently reported improved results due to strong pulp and paper business + weyerhaeuser 's pulp and paper operations were up for the nine months but full-year performance depends on the balance of operating and maintenance costs plus pricing of certain products the company said + looking ahead to the fourth quarter the company said export <unk> and lumber markets will be weak while panel and <unk> markets will be stronger + pulp and paper performance depends on cost and price <unk> the company said + bankers trust new york corp. became the latest major u.s. bank to increase reserves for its loans to less-developed countries making a $ N billion third-quarter addition to its provision + the bank also said it expects to report a $ N billion loss for the third quarter and a loss for the full year + the new reserves bring the company 's provision for loans to third world countries to $ N billion or N N of bankers trust 's medium and long-term loans to these countries + step up to the plate and take the big swing + get the problem behind you and do n't look back said james j. <unk> analyst at <unk> <unk> & woods in <unk> of the move + bankers trust has had the capacity to do this for some time the analyst said + he expects citicorp to take a similar step this year + citicorp yesterday reported a N N third-quarter earnings drop which analysts called a bit disappointing while manufacturers hanover corp. posted a $ N million loss for the quarter after adding $ N million to its reserve for loans to less-developed countries + three other major u.s. banks posted earnings increases + wells fargo & co. of san francisco posted a N N jump + <unk> financial corp. the parent of pittsburgh national bank reported net income climbed N N while net for banc one corp. of columbus ohio grew N N + citicorp + analysts were only slightly disappointed by citicorp 's numbers + there 's nothing in here that 's horrible and nothing to make you think they 're setting the world on fire said <unk> <unk> analyst for <unk> lawrence morgan grenfell inc + earnings from the bank 's global consumer business grew N N + the consumer business continues to drive the earnings stream said mr. <unk> of <unk> <unk> & woods + corporate finance and trading results in member countries of the organization for economic cooperation and development were relatively flat sometimes <unk> the bank said and profit for the area sank N N + the cross-border loan portfolio reflected adjustment problems and <unk> payment patterns the bank said no interest payments from argentina in the nine months and none from brazil in the third quarter while venezuela brought itself substantially current + overall the portfolio narrowed its quarterly loss to $ N million from $ N million a year earlier + people were waiting to see if we would take an additional provision for <unk> and long-term loans to less-developed countries a citicorp spokesman said + but he reiterated the bank 's position that it is comfortable with the current level of $ N billion covering about N N of the $ N billion of such loans outstanding + ronald i. <unk> analyst at sanford c. bernstein & co. called citicorp 's venture-capital gains of $ N million before taxes strong + a concerning item the analyst cited was the N N jump in expenses which the bank attributes to costs of expanding both its consumer credit-card operations and its overseas branch business + citicorp 's spokesman said however that the bank is maintaining those expenses in proportion to revenue growth + wells fargo + wells fargo continued to generate one of the highest profit margins among major banks <unk> a drop in net interest margin with N N third-quarter growth in <unk> business loans and similar growth in mortgages + its margin fell only seven basis points or <unk> of a percentage point from a year ago compared with a <unk> drop at security pacific corp. and much larger declines among banks in other parts of the country + as a result wells fargo 's net interest income rose $ N million or N N to $ N million for the quarter + non-interest income fell slightly to $ N million from $ N million while wells fargo continued to <unk> control non-interest expense which was almost flat at $ N million + the combination of solid loan growth with tight expense control gave wells fargo a N N return on average assets for the quarter about N N higher than security pacific 's and a profit ratio matched by only two or three other major banks in the u.s. + wells fargo 's return on equity increased to N N from N N + wells fargo has sold all of its <unk> loans made to less-developed countries and managed to partly reverse the sharp rise in domestic <unk> loans which fell N N from the previous quarter to $ N million from $ N million + but the amount was still N N higher than the year-ago level and N N higher as a percentage of total loans + that trend and wells fargo 's heavy exposure to leveraged buy-outs are about the only worries analysts have about wells fargo 's financial picture + wells fargo is rebuilding its loan-loss reserve which increased to $ N million at sept. N from $ N million the previous quarter but was down from $ N million a year ago when the bank still had some shaky foreign loans + manufacturers hanover + manufacturers hanover said that excluding the addition to its reserves certain tax benefits and a one-time $ N million gain on the sale of an interest in a foreign leasing company third-quarter earnings were $ N million + the comparable year-earlier number was $ N million a spokesman said + the bank 's additional provisions brought reserves for loans to less-developed countries to $ N billion covering N N of its medium and long-term loans outstanding to these nations + the net interest margin the difference between the bank 's cost of funds and what it receives as interest payments improved in the quarter as did certain areas of wholesale banking + fees from <unk> loans dropped N N to $ N million + we did n't take part in a lot of deals in the quarter because their credit quality was poor the spokesman said + expenses unrelated to interest rose N N to $ N million + <unk> financial + <unk> financial cited higher income from sources unrelated to interest and said it continues to cut costs + net interest income in the third quarter edged up N N to $ N million + trust income grew N N to $ N million while service charges fees and commissions increased N N to $ N million + the bank 's total allowance for credit losses was $ N million or N N of total loans + prime minister <unk> gandhi set a date next month for general elections that some analysts say could cost him and his ruling congress i party control of the government + other analysts say the indian leader could retain control with a slim majority or be forced to rule as the dominant partner in a coalition with other parties + elections in this large diverse and <unk> nation are always hard to predict + much depends on the opposition a loose group of regional and ideological parties led by former gandhi cabinet minister <unk> <unk> <unk> + the biggest <unk> is that the elections will be a vote for or against mr. gandhi and his five years in power five years of ups and <unk> promises and disappointments and wide fluctuations in popularity + yesterday four days after an unusual parliamentary defeat for the ruling party mr. gandhi called elections for the lower house of parliament on nov. N and N + the elections will be held in different states on one of the two days + the lower house 's five-year term expires in january the parliament 's upper house is appointed + the elections will be a <unk> test for the 45-year-old prime minister and congress i which in various forms has ruled for N of india 's N years of independence + after a <unk> win in N in polls held after the assassination of his mother <unk> gandhi mr. gandhi saw his popularity begin a roller <unk> ride + his early promises to make india a modern nation remain <unk> down in bloated bureaucracy + his pledge to clean up local administration and indian politics including his own party went <unk> + his mr. clean image was <unk> by an <unk> scandal which will be a major campaign issue + some analysts predict that disappointment in mr. gandhi 's spent pledge to reduce corruption and <unk> local government will crest at the polls + there 's a wide feeling of <unk> across the country says <unk> sen <unk> of the center for policy research in new <unk> + i think the people will be judging the regime by a <unk> <unk> by a corrupt revenue <unk> + this could be a big protest against an administrative failure + even if the congress i retains control of the government mr. gandhi 's ability to push through major initiatives might be <unk> by a <unk> majority + economic analysts call his <unk> <unk> of the indian economy incomplete and many are hoping for major new <unk> if he is returned firmly to power + the <unk> <unk> or lower house of parliament has N elected and two appointed seats + in N the congress i captured N seats the largest victory in the history of indian democracy + the <unk> was fueled by panic that prevailed in india at the time + mrs. gandhi had been <unk> by <unk> <unk> and many indians feared their country might split apart + in the previous three general elections similar national issues <unk> the vote + in N the congress party won after india 's victory in the <unk> war + in N mrs. gandhi was thrown out of office after her <unk> emergency rule and in N after her <unk> made a mess of their three years in power she was restored to office + most political analysts say that if mr. gandhi 's opposition <unk> to field single candidates in most <unk> the congress i will lose big + but if the opposition remains <unk> the congress i could win a small majority or lead a coalition government + <unk> mehta a <unk> and former gandhi ally predicts congress i will win only N seats a quarter of the house if the opposition fields single candidates in N N of the races + analysts say the opposition will struggle this week to <unk> and its success will be clear only when it <unk> its final list of parliamentary candidates + the <unk> scandal is likely to be one of the big talking points in the campaign but it 's unclear how it is viewed by average indian voters + in N india signed a $ N billion contract with ab bofors a unit of nobel industries sweden ab to purchase N <unk> pieces + the contract was negotiated by the countries ' two prime ministers and was supposed to be free of commissions or agents ' costs + in april N evidence surfaced that commissions were paid + the opposition charged that the money was used to bribe indian government officials an <unk> denied by mr. gandhi 's administration + but many of his statements on the issue in parliament subsequently were proven wrong by <unk> evidence + the scandal has faded and <unk> but recent disclosures propelled it back onto the front pages and that has helped <unk> the opposition which last week blocked passage of two constitutional amendment bills + it was the first time in N years that such government bills were defeated + in a country where a bribe is needed to get a phone a job and even into a school the name bofors has become a potent <unk> cry against the government + that illustrates the kind of disappointment many indians feel toward mr. gandhi whom they <unk> elected and <unk> supported in his first two years in power + his term has produced no spectacular failures in politics in the economy or on the military front and has <unk> up some successes + but the average indian had tremendous hope in the <unk> leader and his promise to make both government and the ruling party more effective and less corrupt + his failures in those two areas deeply and sometimes bitterly disappointed many indians + we do n't like the congress i says <unk> <unk> a farmer in the western state of <unk> + the congress government is taking the farmers ' bread and not giving us any support + when there are well problems light problems road problems the government tells us to forget it + the greatest thing going for mr. gandhi and the congress i party is the poor reputation of the opposition + even if it <unk> for the elections its <unk> is likely to be temporary + when the congress i lost the N election following mrs. gandhi 's <unk> emergency rule a similar coalition took power and then <unk> + many indians fear a repeat of that experience + march N N + ab bofors a unit of nobel industries sweden ab enters into a $ N billion contract with india 's defense ministry to supply N bofors <unk> <unk> field <unk> guns + in N prime minister <unk> gandhi in his talks with then swedish prime minister <unk> <unk> imposed the condition that the contract have no middlemen + april N N + swedish national radio reports that about $ N million nearly N N of the total contract was paid by bofors as commissions to middlemen + june N N + sweden 's national audit bureau releases its report confirming payment of about $ N million to unidentified indians + the report says that investigations were severely hampered by lack of cooperation from bofors + bofors says it ca n't disclose the names of the middlemen because it would jeopardize industrial <unk> + a portion of the report containing names of the middlemen is withheld by officials citing bank <unk> requirements + aug. N N + prime minister gandhi tells the indian parliament neither i nor any member of my family has received any consideration in these transactions + that is the truth + aug. N N + bofors admits payments of $ N million to middlemen + april N N + the <unk> newspaper publishes <unk> of bank documents for foreign-exchange <unk> and letters between bofors and certain private companies related to the sale of the guns to india + april N N + a parliamentary <unk> committee dominated by the congress i party concludes that there were no middlemen in the deal and no payment to any indian individual or company + july N N + the comptroller and <unk> of india reports serious <unk> in the government 's technical and financial evaluation of the bofors deal + sept. N N + retired army chief of staff <unk> <unk> <unk> in an interview that he suggested in may N that the government cancel the bofors contract + according to gen. <unk> that would have forced bofors to disclose the names of the middlemen who received <unk> from the company + his recommendation was rejected by the government + oct. N N + the <unk> newspaper publishes the withheld portion of the swedish national audit bureau 's report + the disclosures state that commissions were paid by bofors to an indian agent of the arms company + parsow partnership ltd. and <unk> partners l.p. said they may seek proposals from third parties relating to a sale or restructuring of caci international inc + in a filing with the securities and exchange commission parsow and <unk> which together hold N N of caci 's common shares said they think it is in the best interest of caci stockholders that the company be sold + caci based in <unk> va. said it had n't seen the filing by parsow and <unk> and therefore had no comment + the partnerships said they may seek board representation and they may seek the support of caci 's board and other major shareholders in connection with their plans + according to the filing parsow and <unk> are based in <unk> neb. and are controlled by the same general partner alan s. parsow + their combined stake consists of N caci common shares including N shares bought in the past N days at $ N to $ N a share + additional shares may be bought or sold in the open market in private transactions or otherwise depending on market conditions and other factors + the <unk> trading relationship between bonds and stocks was interrupted yesterday as bonds fell despite a modest decline in stock prices + but bond investors continue to keep a close watch on the jittery stock market + in early trading investors were bidding bond prices higher as stocks tumbled and fears mounted that friday 's stock market debacle would be repeated + but a partial recovery in the dow jones industrial average which had been down more than N points in midmorning dashed those expectations + treasury bonds also were hurt late in the day by a $ N billion offering by the tennessee valley authority and the prospect of a huge amount of new agency debt + bond investors were hoping that stock prices would continue to fall said roger early a vice president at federated investors inc. pittsburgh + when stocks stabilized that was a disappointment + meanwhile for the second straight day the bond market paid little attention to the federal reserve 's open market operations + fed officials <unk> more cash into the banking system by arranging $ N billion of repurchase agreements during the usual <unk> intervention period + the move was meant to keep a lid on interest rates and to boost investor confidence + the intervention has been friendly meaning that they really did n't have to do it said maria <unk> ramirez money-market economist at drexel burnham lambert inc + she said a more aggressive move was n't needed + the fed also appears reluctant to ease credit conditions further + it already has allowed the closely watched federal funds rate to decline N percentage point to about N N N from its previous target level of about N N + the rate which banks charge each other on overnight loans is considered an early signal of changes in fed policy + it ended at about N N N yesterday but was as low as N N N monday + the treasury 's benchmark 30-year bond fell more than N point or over $ N for each $ N face amount while the yield moved above N N for the first time since thursday + investment-grade corporate municipal and mortgage-backed securities also fell + but most junk bonds closed unchanged after opening slightly higher on bargain-hunting by institutional investors + some so-called high-quality junk issues such as r.h. macy & co. 's N N N subordinated debentures rose + the macy 's issue closed up about one point at a bid price of N + the tva 's public debt offering was its first in N years + strong investor demand prompted it to boost the size of the issue from $ N billion + traders said hedging related to the tva pricing also pressured treasury bonds + underwriters of the tva bonds reduced their market risk by selling treasurys to cover at least part of their tva holdings said james r. <unk> a senior vice president at shearson lehman government securities inc + the tva bonds also served to <unk> the market that there will be even more new supply said lawrence n. <unk> a managing director at <unk> warburg securities & co + today the treasury will announce the size of its next two-year note sale and resolution funding corp. will announce details of its first bond offering + some traders estimate $ N billion of new two-year treasurys will be sold next week and they expect refcorp to offer $ N billion to $ N billion of long-term bailout bonds + refcorp was created to help fund the thrift bailout + another agency issue came to market yesterday + the office of finance of the federal home loan banks said it priced a <unk> $ N billion bond offering for the banks to yield from N N to N N + the release of several economic reports had little impact on the market including a report that the u.s. trade deficit expanded to a surprisingly wide $ N billion in august up from a revised $ N billion in july + the august gap was expected to have expanded to $ N billion + treasury securities + treasury securities were essentially flat to about N point lower + the benchmark 30-year bond was quoted late at N N to yield N N compared with N N to yield N N monday + the latest 10-year notes were quoted late at N N to yield N N compared with N N to yield N N + short-term rates increased + the discount rate on three-month bills rose to N N for a bond-equivalent yield of N N + the rate on six-month bills rose to N N for a bond-equivalent yield of N N + corporate other issues + investment-grade corporate bonds ended N to N point lower while most junk bonds ended unchanged + the tva 's huge $ N billion offering dominated attention in the new-issue market + tva offered $ N billion of 30-year bonds priced to yield N N $ N billion in 10-year notes priced to yield N N and $ N billion in five-year notes priced to yield N N + the tva which operates one of the nation 's largest electric power systems is a corporation wholly owned by the u.s. government + yesterday 's bond sale was part of a $ N billion refinancing plan to pay off high-interest debt the tva owes the federal financing bank an arm of the treasury + meanwhile lockheed corp. priced a $ N million note offering to yield N N + mortgage-backed securities + the derivative mortgage-backed market revived after a brief <unk> as two new remics totaling $ N million were offered and talk circulated about two more issues that could be priced today + the revival of the real estate mortgage investment <unk> market reflected the relative calm in the mortgage market after two days of volatile trading + dealers noted that it 's difficult to structure new remics when prices are moving widely + the two remics priced were a $ N million federal home loan mortgage corp. issue underwritten by salomon brothers inc. and a $ N million federal national mortgage association deal underwritten by greenwich capital markets + the remic issuance supported prices of freddie mac and fannie mae securities which held up better than government national mortgage association securities during an afternoon sell-off + ginnie mae N N securities for november delivery ended at N N down N N N N securities at N N down N and N N securities at N N down N + freddie mac N N securities were at N N down N + the ginnie mae N N issue was yielding N N to a 12-year average life assumption as the spread above the treasury 10-year note held at N percentage points + municipals + confusion over the near-term trend for rates dominated the municipal arena as gyrations in the stock market continued to buffet bonds + long tax-exempt dollar bonds were mostly flat to N point lower after a <unk> session of moving <unk> to stocks in modest <unk> trading + prices of <unk> municipal bonds were capped by news that chemical securities inc. as agent for a customer will accept bids today for two large lists of bonds that include many such issues + the lists total $ N million + <unk> bonds are called at their earliest call date with the <unk> proceeds of another bond issue + meanwhile several new issues were priced + underwriters led by painewebber inc. set preliminary pricing for $ N million of california health facilities financing authority revenue bonds for kaiser <unk> + tentative <unk> yields were set from N N in N to N N in N + as part of its college savings plan connecticut offered $ N million of general obligation capital appreciation bonds priced to yield to maturity from N N in N to N N in N N and N + a chemical securities group won a $ N million oregon general obligation veterans ' tax note issue due nov. N N + the N N N notes yield N N + foreign bonds + west german government bond prices took a wild roller-coaster ride pulled down by monday 's u.s. stock market gains then up by a <unk> u.s. trade deficit and falling u.s. stock prices + west germany 's N N bond due october N was at N late yesterday off N point from monday to yield N N + the N N N notes due april N were up N point to N to yield N N + british government bonds surged on renewed volatility in the stock market + the treasury N N N bond due N rose N to N N to yield N N + but japanese bonds ended weaker + the benchmark no. N N N bond due N ended on brokers ' screens at a price of N off N point to yield N N + a house-senate conference approved an estimated $ N billion fiscal N spending bill that provides a N N increase for space research and development and <unk> far-reaching provisions affecting the federal mortgage market + the current ceiling on home loans insured by the federal housing administration would be increased to $ N + separately the bill gives authority to the bush administration to facilitate the refinancing of federally subsidized loans for low-income and <unk> homeowners + the second provision affecting so-called N mortgages has met strong opposition from investment bankers represented by the public securities association + and a <unk> of influential former senate aides employed by the wall street firm salomon brothers came to the capitol in a <unk> attempt to strip the provision + by an N margin senate negotiators voted to preserve the N mortgage refinancing plan and despite powerful allies the opposition found itself undercut by an unusual alliance of liberals and conservatives + the government currently is subsidizing an estimated N loans above N N under the N program and however <unk> to private investors the refinancing is expected to yield at least $ N million in savings in fiscal N + this sum has been <unk> <unk> by <unk> anxious to offset spending elsewhere and conservative sen. phil <unk> cast the fight as a <unk> stand against <unk> interests + we are <unk> here not of the mortgage companies but the taxpayers said the texas republican + the action came as the administration won final congressional approval of $ N million in assistance for elections scheduled in nicaragua in february + the bulk of the money would be <unk> through the national <unk> for democracy but the legislation is so <unk> written that it has been dogged by questions regarding the money 's true purpose and its ultimate <unk> + the senate had refused late friday to <unk> <unk> and limit debate but behind the bipartisan leadership a solid majority took shape yesterday and brushed aside amendments seeking to cut the total package or steer it away from direct aid to political parties + final approval on a N roll call was never in doubt but the opposition drew an unusual mix of senators including republicans <unk> <unk> and warren <unk> and democrats bill bradley and john glenn + the money will be applied for voter registration and election monitoring but more than half is likely to go to the union <unk> <unk> party + critics warned such cash contributions may only undercut the opposition party 's standing and one irony is that under nicaraguan law a major portion of the opposition party 's funds must be shared with the government 's supreme electoral council + within the appropriations conference yesterday the $ N billion measure is the second largest of the annual domestic spending bills and covers a <unk> collection of accounts for science housing veterans and the environment + the decision to raise the ceiling on fha home loans still faces strong opposition in the house + but it is driven by the same fiscal pressures that have forced lawmakers to resort to various <unk> devices to <unk> as much as $ N billion in spending that would otherwise put the bill over budget + these costs will complicate the budget picture in fiscal N and the measure further <unk> congress to a set of costly projects including the first construction funds for the space station + the station is promised $ N billion within the $ N billion provided for research and development in the national aeronautics and space administration and the nation 's <unk> aerospace plane cut by the senate could receive as much as $ N million in new funds or transfers + similarly the house agreed to add back $ N million to continue work on the advanced communications technology satellite being developed by general electric co + and while setting a statutory limit of $ N billion on the automated space probe the conference appropriated $ N million for the start-up of the <unk> mission a successor to the <unk> space probe + among major domestic agencies the environmental protection agency stands to receive increases significantly beyond those sought by the administration with pollution <unk> and control accounts growing by N N to about $ N million + an estimated $ N billion is separately allocated for the national science foundation and within the housing and urban development department more than $ N billion is provided for federally <unk> housing including an expanded effort to modernize public housing units that serve the poorest families + to an unusual degree the massive bill has become a vehicle for lawmakers to <unk> funds for projects in home states + while the practice was discouraged in the past the conference agreement is <unk> with veterans ' hospitals environmental projects and urban grants designated for specific communities + the most striking example yesterday may have been in community development funds where the two houses had separately approved a total of N projects valued at $ N million and the conference added N more valued at $ N million to <unk> preserve balance between the house and senate + yesterday 's conference agreement is the second major bill to emerge from negotiations this week as <unk> approved a fiscal N transportation bill late monday that includes a sweeping ban on smoking on most domestic airline flights + an exemption will remain for flights longer than six hours to hawaii and alaska but estimates by the tobacco industry yesterday indicate all but about N flights would be covered + separately a third conference report covering an $ N billion treasury and postal service bill was sent to the senate after passing the house on a N roll call yesterday + and after weeks of delay the appropriations process is beginning to take some final shape + defense and foreign aid are the two most critical areas remaining from the administration 's standpoint + and among domestic programs the most serious threat is white house opposition to abortion riders attached to separate bills funding the district of columbia and department of health and human services + the same issue threatens to spill over to the foreign aid debate and mr. bush also is threatening to veto any agreement that <unk> <unk> provisions renewing u.s. support for the united nations fund for population activities + in a sharply written letter rep. david <unk> chairman of the house appropriations subcommittee for foreign operations warned mr. bush that the result of his <unk> could weaken efforts to accommodate the administration elsewhere + as a result of your <unk> writes the wisconsin democrat i guess there is no longer any point in taking administration views into account on other items in conference <unk> regardless of their resolution you apparently intend to veto this bill + markets usually get noticed because they soar or plunge + gold which has n't risen or fallen significantly in quite some time yesterday achieved what may be a new level of <unk> the most actively traded futures contracts closed unchanged despite nervous fluctuations in both the dollar and the stock market + the settlement prices of the december february and april gold contracts were even with monday 's final prices + the december N contract which has the greatest trading volume ended at $ N an ounce + the other months posted advances of N cents to N cents an ounce + according to one analyst bernard savaiko of painewebber new york the stock market 's ability on monday to rally from last friday 's decline which seemed to indicate that the economy was n't going to fall either took the <unk> out of precious metals prices and out of gold 's in particular + yesterday gold traded within a narrow range + gold tried to rally on monday but ran into the same situation that has subdued gold prices for more than a year selling by gold producers who want to fix the highest possible price for their gold + december delivery gold is trading in a range of $ N to $ N an ounce and is having difficulty breaking out above that mr. savaiko said + producers at the moment regard that area a good one in which to sell gold + also mr. savaiko noted stock market investors seeking greater safety are <unk> toward buying bonds rather than precious metals because we are <unk> more toward a <unk> economy that does n't make gold and precious metals attractive + jeffrey <unk> president of <unk> canada toronto precious metals advisers said there is little to <unk> gold traders to buy the metal + investors in the u.s. and europe are comfortable with the actions of the federal reserve in its willingness to supply liquidity to financial system which helped the stock market rebound on monday he said + there is n't any rush on the part of investors in the west to buy gold he said + they still bear the memory of october N when they bought gold after the stock market <unk> and ended up losing money because gold prices subsequently fell mr. <unk> said + it 's an experience they do n't want to repeat + at the moment gold traders are n't concerned about inflation he said and as for the dollar gold 's association with the currency has been <unk> recently so drops in the currency are n't having much impact on gold + <unk> mehta chief bullion trader for chase manhattan bank said there is little incentive on the part of traders to sell gold because the stock market may go lower and gold may retain some of its flight to safety quality + there is little incentive to buy gold because if the stock market goes higher it may be just a false alarm + this is keeping the gold traders <unk> + the most remarkable feature about yesterday 's action was that the price of roughly $ N an ounce was regarded as attractive enough by gold producers around the world to aggressively sell gold mr. mehta said + i do n't know what it means over the long run but for the short term it appears that gold producers are <unk> for the $ N or so that gold has risen over the past week or so he said + previously he noted gold producers <unk> to back off from a rising gold market letting prices rise as much as possible before selling + mr. mehta observed that the u.s. merchandise trade deficit which rose sharply in august according to yesterday 's report has been having less and less impact on the gold market + the dollar has n't reacted much to it so gold has n't either he said + in other commodity markets yesterday + energy + crude oil prices rose slightly in lackluster activity as traders in the pits tried to assess action in the stock market + since stock market indexes plummeted last friday participants in all markets have been wary + when traders become confident that the stock market has stabilized oil prices are expected to rise as supply and demand fundamentals once again become the major consideration + crude oil for november delivery edged up by N cents a barrel to $ N a barrel + heating oil prices also rose + november gasoline slipped slightly + sugar + futures prices rose on a report that cuba may seek to postpone some sugar shipments + the march contract advanced N cent a pound to N cents + according to an analyst cuba ca n't meet all its shipment commitments and has asked japan to accept a delay of shipments scheduled for later this year into early next year + japan is perceived as a wealthy nation that can turn elsewhere in the world market and buy the sugar the analyst said + it was the possibility of this demand that helped firm prices the analyst said + another analyst noted that cuba has been deferring shipments in recent years + to the professionals in the trade it did n't cause much surprise + the march futures contract traded as high as N cents but could n't sustain the advance he said + livestock and <unk> + the prices of cattle <unk> and pork <unk> futures contracts rebounded as livestock traders shook off fears that the friday stock market plunge would <unk> consumer spending which in turn would hurt retail sales of beef and pork + the prices of most livestock futures contracts had dropped sharply monday + cattle futures prices were also supported yesterday by signs that supermarket chains are making plans to increase their promotions concerning beef + grains and soybeans + the prices of most soybean and <unk> futures contracts rose amid rumors that the soviet union is interested in buying from the u.s. or south america about N metric tons of soybeans and as many as N metric tons of soybean <unk> + traders are especially sensitive to reports of possible u.s. soybean sales because u.s. exports are lagging + since sept. N about N million fewer <unk> of u.s. soybeans have been sold overseas than for the same period last year + corn futures prices rose slightly while wheat prices settled mixed + moody 's investors service inc. <unk> about increasing competitive pressure on ryder placed about $ N billion in company securities under review for possible downgrade + ratings under review are ryder 's <unk> collateral trust debentures <unk> senior notes and bonds <unk> preferred stock and the company 's <unk> rating for commercial paper + moody 's said it is assessing the strategies ryder 's management may follow in addressing significant challenges in some major markets + the rating agency said it is focusing especially on the transportation service company 's efforts to control costs improve margins and enhance its competitive position in its primary business vehicle leasing and rental + the nations of southern africa know a lot about managing <unk> their <unk> are thriving + but the nations of europe and north america have decided they know better + at this week 's u.n. conference in <unk> they imposed a global ivory ban that seeks to <unk> local policies + a <unk> delegate argued that the ban would guarantee the <unk> of the elephant + legitimate <unk> who have an interest in preserving the <unk> would go out of business + <unk> would control the underground trade + many delegates were willing to craft a compromise but u.s. delegate <unk> <unk> and others <unk> that down + the greens from the first world wanted a <unk> play not a negotiation + fortunately the nations of southern africa have n't totally surrendered their sovereignty + five countries announced they would not honor what one <unk> delegate <unk> called the made in switzerland solution + in fact they seemed a <unk> <unk> + the director of <unk> 's wildlife department described american <unk> as fat little <unk> from urban environments who do n't know a thing about africa + that 's not fair they 're not all fat + <unk> blast generates <unk> for aid from south carolina small businesses + the small business administration has received more than N formal requests for disaster loans because of the hurricane + about N N of requests for <unk> relief loans which also are available to homeowners come from small businesses compared with a N N business share after most disasters + the <unk> expects to make about $ N billion in hurricane hugo loans + the disaster fund is <unk> by loan <unk> + hardest hit by hugo in south carolina were small retailers tied to the tourist industry and businesses in agriculture and <unk> <unk> + the state development board set up a hugo <unk> to accept <unk> help + after nbc weather man <unk> scott broadcast the <unk> number it was flooded with N calls + last week the u.s. chamber of commerce began using its national tv show to seek help such as equipment for business owners + local bankers and accountants help applicants fill out forms + it helps us and people feel better talking to someone who 's gone through the same thing an <unk> official says + health benefits remain a central lobbying effort even as section N <unk> + the senate after <unk> section N repeal from its deficit-reduction bill still is expected to join the house in voting to kill the law which forces companies to provide comparable benefits to <unk> and executives alike + in lobbying on other <unk> topics the national federation of independent business will press for legislation that would give self-employed people a N N tax deduction for their own health plans up from N N currently + and the group will urge that the federal government <unk> state rules on what must be covered by employers ' health insurance + small-business groups also will fight the <unk> provision of legislation that would expand parental leaves + and they still oppose as too costly an <unk> health insurance bill sponsored by sen. edward kennedy d. mass despite his proposal to phase in small business only gradually + there is also worry that the <unk> commission studying long-term health care will again push lawmakers toward <unk> solutions + the section N victory could have a downside by making it harder to oppose lawmakers on other health proposals + with the repeal of section N we can no longer say they 're discouraging businesses from offering health plans says <unk> russell the chamber of commerce 's small-business advocate + jumping the gun + sen. lloyd <unk> d. texas was <unk> after a private word to john <unk> lobbyist for the national federation of independent business resulted in a news release saying that the senate finance committee chairman would recommend repeal of section N + even though the announcement was true in the end it was issued without the senator 's permission + i <unk> it mr. <unk> says <unk> + it was a timing mistake + <unk> blues + sen. <unk> thurmond r. s.c protests pending legislation to end the preference that the federal prison system gets in selling <unk> furniture and other goods to government agencies + small-business suppliers want prisons to stop getting high priority especially as prison production grows with swelling <unk> <unk> + last year the prisons ' sales to the pentagon totaled $ N million + repair shops scrap for more access to work on <unk> systems + groups representing some independent <unk> shops join a compromise on the clean air legislation worked out between environmentalists and rep. henry waxman d. calif + the plan would increase the warranty on <unk> systems to eight years or N miles from five years or N for major parts + but the warranty on simpler parts would be lowered to two years or N miles + the garage owners say they would benefit because car owners would be less likely to go back to dealers for the simpler repairs after two years + the repair shops are n't united however + shops represented by the automotive service industry association and the motor equipment manufacturers association oppose any increase in warranty length + they say the longer the warranty the longer customers will automatically return to <unk> dealers which then find <unk> work that might otherwise go to repair shops + the house energy committee will debate the issue later this month + <unk> <unk> an atlanta garage owner who opposes a longer warranty estimates that the current plan costs him as much as $ N a year in lost business + small talk + some N N of graduates who recently earned an <unk> degree say they 'd prefer to work in or own a small company yet most take jobs with large concerns says a survey by the foster <unk> group a new york recruiting firm + <unk> scientific inc. of <unk> md. seeks a small business innovation research grant to produce a <unk> assembly for an army mass <unk> outfit + banc one corp. said frank e. <unk> plans to retire as the bank holding company 's president effective jan. N + banc one said it is contemplated that john b. <unk> chairman and chief executive officer will assume the additional position of president upon mr. <unk> 's retirement + mr. <unk> N years old was chairman and chief executive of american fletcher corp. indianapolis when that bank holding company merged into banc one in january N + the company said mr. <unk> plans to retire because the process of <unk> american fletcher into banc one is considered completed + mr. <unk> will continue as chairman of the board and chairman of the executive committee of banc one indiana corp. the successor company to american fletcher corp. but will no longer be active in day-to-day management + he will remain on the banc one board + the treasury plans to raise $ N billion in new cash with the sale monday of about $ N billion in short-term bills to redeem $ N billion in maturing bills + the offering will be divided evenly between 13-week and 26-week bills maturing on jan. N N and april N N respectively + tenders for the bills available in minimum $ N denominations must be received by N p.m. edt monday at the treasury or at federal reserve banks or branches + moody 's investors service inc. said it lowered ratings on about $ N million of beatrice co. debt citing the closely held chicago food concern 's proposed recapitalization + the ratings concern said it downgraded beatrice notes <unk> and certain industrial revenue bonds to <unk> from <unk> and the company 's subordinated debentures to <unk> from <unk> + moody 's said the proposed <unk> may limit the company 's ability to realize its profit potential and that paying dividends from a new series of preferred could squeeze basic business operations + a beatrice spokesman did n't return calls seeking comment + beatrice which went private in an $ N billion leveraged buy-out in N said last month that it might borrow again to help pay investors as much as $ N million in preferred stock and debt securities + when the soviets announced their last <unk> had left afghanistan in february the voices of skepticism were all but <unk> out by an international chorus of euphoria + it was the soviets ' vietnam + the kabul regime would fall + millions of refugees would rush home + a resistance government would walk into kabul + those who bought that illusion are now <unk> + eight months after gen. <unk> <unk> walked across the bridge into the u.s.s.r. a <unk> regime remains in kabul the refugees sit in their camps and the restoration of afghan freedom seems as far off as ever + but there never was a chance that the afghan resistance would <unk> the kabul regime quickly and easily + soviet leaders said they would support their kabul clients by all means necessary and did + the u.s. said it would fully support the resistance and did n't + with the february N u.n. accords relating to afghanistan the soviet union got everything it needed to consolidate permanent control + the terms of the geneva accords leave moscow free to provide its clients in kabul with assistance of any kind including the return of soviet ground forces while requiring the u.s. and pakistan to cut off aid + the only fly in the soviet <unk> was the last-minute addition of a <unk> american <unk> that u.s. aid to the resistance would continue as long as soviet aid to kabul did + but as soon as the accords were signed american officials sharply reduced aid + in february N when the soviets said they had completed their pullout the u.s. cut it further + not so the soviets + gen. <unk> himself said soviet troops expected to leave behind more than $ N billion of military equipment and installations for the kabul regime + since the troop withdrawal moscow has poured in an additional $ N to $ N million worth per month nearly $ N billion since february equivalent to the total u.s. aid to the resistance in nine years + this includes what deputy foreign minister <unk> <unk> <unk> called new peaceful <unk> weapons including more than N <unk> missiles + by early may moscow had delivered for example N trucks about N tanks <unk> and hundreds of other combat vehicles + later that month it added an entire tank <unk> including N <unk> tanks and more than N <unk> <unk> <unk> fighting vehicles + by september a new reinforced <unk> <unk> <unk> with an additional N combat vehicles N more trucks and N <unk> afghan troops had arrived in <unk> + in the last few weeks moscow has added <unk> missiles the bomber version of the <unk> <unk> <unk> aircraft <unk> which can <unk> pakistan 's <unk> <unk> and <unk> <unk> <unk> which can <unk> the <unk> + moscow claims this is all needed to protect the kabul regime against the guerrilla resistance + it is well-known that the regular afghan <unk> is filled with reluctant <unk> + but this is not the entire afghan army and it is no longer kabul 's only military force + complete units have been trained and <unk> in the u.s.s.r. and other east bloc nations N to N of these troops have returned + in addition the regime has established <unk> <unk> forces totaling more than N including N <unk> troops of the interior ministry <unk> which still is directed by N soviet kgb officers + even if not all these forces are committed to the regime they are now dependent on it + and thousands of afghan children have been taken to the soviet union where they are <unk> for the behavior of their families + since N indian military advisers have been <unk> the kabul regime + in preparation for the withdrawal moscow kabul and new <unk> signed two agreements for several hundred newly civilian indian experts to replace some of the more visible soviet military personnel + cuban military personnel also have been active in afghanistan since N + the soviets cut a deal with iran a future iranian role in afghanistan in exchange for iranian support of soviet policy + the deal was <unk> by the restoration of the <unk> <unk> <unk> <unk> to the afghan prime ministry + moreover serious questions have been raised about the claimed withdrawal of soviet forces + before his assassination in N president <unk> of pakistan repeatedly stated that fresh soviet troops were being inserted into afghanistan even as others were <unk> withdrawn + rep. bill <unk> r. fla. reports that these included N to N soviet central asian kgb border guards <unk> <unk> from <unk> and wearing <unk> <unk> + meanwhile the kabul regime is increasingly successful at portraying the resistance as <unk> <unk> + in this they are aided by years of american european <unk> and saudi support for the most extreme <unk> radical <unk> <unk> with leaders whose policies are <unk> to the afghan public + this heavy outside support for the worst has undermined better moderate leaders + in autumn last year for example the regime garrison at <unk> was prepared to surrender the city to resistance <unk> + at the last minute however <unk> officials sent in <unk> <unk> perhaps the most <unk> and feared of the <unk> with a demand that the surrender be made to his forces + the deal fell through and <unk> remains a major regime base + the resistance lacks not only air power <unk> and expertise but often such <unk> as <unk> mine detectors or even winter <unk> + experienced resistance <unk> wanted to use guerrilla action and <unk> tactics to wear down the regime + instead they were pressured by pakistan 's isi the channel for their support into attacking <unk> + they took more than N N <unk> journalists report that they faced <unk> without mine detectors + the wonder is not that the resistance has failed to topple the kabul regime but that it continues to exist and fight at all + last summer in response to congressional criticism the state department and the cia said they had resumed military aid to the resistance months after it was cut off but it is not clear how much is being sent or when it will arrive + for months the resistance has been <unk> against air attack + thus far there is no indication that they have been <unk> with <unk> or other <unk> weapons + indeed u.s. officials have indicated to the press that the <unk> of aid depends on what success the weakened resistance <unk> by the end of this year + moscow and kabul must have found that information useful + for a decade u.s. policy has been <unk> based on <unk> and the defense of bureaucratic and political turf + no settlement negotiated by others can force the afghan people to give up their struggle + a <unk> of u.s. military aid would merely abandon them to die in <unk> + creation of a new realistic u.s. policy is long overdue + ms. <unk> editor and co-author of afghanistan the great game <unk> freedom house directs the freedom house program on <unk> asia + nothing <unk> the soul of ronald reagan and his <unk> as much as the crusade to aid nicaragua 's contra rebels or the dream of building a <unk> defense shield to knock out soviet nuclear missiles + yet under mr. reagan 's preferred successor president bush those two <unk> <unk> causes are <unk> on the <unk> + and surprisingly little more than a <unk> of protest is being heard even though <unk> once <unk> fire supporting the contras and the strategic defense initiative + the programs have <unk> says rep. henry <unk> a conservative republican from illinois + yet he asserts you look around and you say who are the leaders + who is going to carry the water + it is n't surprising that president bush has n't led a crusade to pump up the contras or sdi + though he <unk> supports both programs mr. bush has n't been a <unk> champion of either cause as mr. reagan was + what 's surprising is that there is n't more of a conservative outcry as the bush administration lets the programs slip down the <unk> list + a combination of factors a <unk> among some conservatives a decline in the perception of a soviet threat and a <unk> with other issues seem to explain the strange <unk> + above all though conservative republicans who have <unk> both the contras and sdi are reluctant to attack a republican president for failing to do more though that reluctance may be <unk> + we want to complain we want to say something about it and we 're going to as it gets worse says rep. dan burton an indiana republican who has been a <unk> contra backer + but it 's like <unk> your father in the <unk> + you hate to do it because he 's your father + mr. burton says conservatives ' <unk> with mr. bush 's cautious handling of the recent unsuccessful coup in panama will make them more willing to speak out + of course neither president bush nor the congress has actually abandoned the contras or sdi + mr. bush has struck a deal with congressional leaders to provide <unk> aid to the contras until nicaragua holds national elections next february + but the administration has dropped any effort to win military aid for the rebels + and the administration 's deal with congress gives several congressional committees the right to cut off even humanitarian aid next month though the committees are likely to let aid continue until february + most analysts think there 's little prospect the contras can be a significant fighting force without u.s. arms and after the february election their future in any form will be <unk> at best + instead of focusing on the contras mr. bush has switched to urging members of congress most recently in a white house meeting yesterday to approve financing for the election campaign of political opponents of nicaragua 's sandinista government + the administration continues to support sdi or star wars and it recently lobbied to persuade the senate to restore some of the funds it planned to cut from the program + and just last week defense secretary dick cheney gave a strong speech listing compelling reasons to push ahead with sdi and saying he 'd urge president bush to veto a defense bill with inadequate funding for the program + but the strong pitch by mr. cheney may be too little too late to prevent damage to sdi + the house has already voted for a deep cut in funding and in the end the program 's backers will be hard pressed to head off some reduction in spending next year + and while the defense secretary is speaking out president bush himself has n't launched any <unk> campaign to drum up support as president reagan did + the administration also acknowledges that it is n't pursuing mr. reagan 's original vision of an <unk> shield protecting the whole u.s. but rather a more modest version + more <unk> to sdi supporters the bush administration appears to have <unk> accepted a new arms-control proposal from the soviet union that <unk> long-term trouble for star wars + the soviets have agreed to complete a treaty cutting strategic weapons without including restrictions on <unk> defenses + but the soviets also are insisting that they will reserve the right to withdraw from the completed <unk> treaty later on if the u.s. does sdi testing or <unk> that the soviets think violates the existing <unk> treaty + it will be hard down the road to persuade congress to approve money for sdi plans if lawmakers fear those plans could scuttle a completed treaty + as a result frank <unk> a former reagan pentagon aide who now heads the center for security policy charges that the administration 's <unk> of continued commitment to development and <unk> of the sdi program strain <unk> + still proponents may be <unk> away from more <unk> because they sense political <unk> have turned against <unk> the nicaraguan rebels or boosting spending on sdi particularly when the public <unk> the soviet threat is declining under mikhail gorbachev + in fact because communism seems to be beating a global retreat some conservatives may simply be so pleased that their <unk> philosophy is prevailing that they do n't have the fire at the moment to push controversial programs + the short of it is that the most <unk> among us can not get into too sour a mood with communism <unk> says mitchell <unk> a former reagan white house aide who now is president of the hudson institute + some activists are <unk> to raise the profile of the two causes + but they say they ca n't make much <unk> because of a lack of willing leaders in a position to turn the tide + one longtime champion of these programs in congress republican whip <unk> <unk> of georgia is <unk> by questions about his ethics conservatives note + other conservative <unk> like wyoming republican sen. malcolm <unk> a longtime sdi advocate do n't have the clout with the bush white house that they enjoyed with president reagan + above all though proponents say neither the contra nor the sdi cause can be pushed much further without more presidential support + for there to be wind in the <unk> of any program the chief executive has to be <unk> in the <unk> says rep. burton + all this causes rep. <unk> to <unk> about an <unk> way to drum up more enthusiasm + what i 'd like to see if he is up to it is for reagan to take to the <unk> to <unk> enthusiasm for sdi the congressman says + we 're sorry to report that on monday president bush accepted the resignation of william allen as chairman of the u.s. civil rights commission + mr. allen appointed by president reagan grew <unk> tired of dealing with the guerrilla tactics of his enemies + his recent speech <unk> titled blacks animals <unk> what is a minority caused an <unk> when its title <unk> out + mr. allen 's commissioners voted to call his <unk> speech <unk> <unk> and <unk> <unk> + commissioner mary francis berry said it was another sad episode in the <unk> of the <unk> missile who is chairman + rep. don edwards the california democrat warned mr. allen that the speech would be outside the scope of the commission 's jurisdiction + thomas <unk> head of the <unk> legal defense fund called the prospect of the speech frankly <unk> + we 've actually read the speech + mr. allen began it with a warning to his hosts a california church group that opposes rights for <unk> + he said that other participants in the conference do not believe that the rights of americans should be guaranteed to citizens who are homosexual but that i mean to persuade you to the opposite view + he recalled to the audience a strange <unk> <unk> he once heard arguing now that we have finally recognized that american blacks have rights we need to do the same for animals + mr. allen <unk> to this <unk> because it seems to <unk> the status of blacks to that of animals as a mere project of charity of <unk> + rights on such a basis whether for blacks or <unk> are mere <unk> he said subject to being taken back + he says the title of his speech was to make his point that americans have rights as individuals not as members of certain select groups + his speech criticized the <unk> of <unk> of protected groups in society as opposed to individual <unk> or as he put it in a common <unk> as americans + instead of lobbying for special treatment mr. allen said that <unk> and others should try to ensure equal treatment under the law and not aim for special privileges that would risk <unk> <unk> with government <unk> + this hardly sounds like an <unk> <unk> + what 's really going on here + the three most important things to understand about mr. allen is that he is a black conservative intellectual a triple threat to the liberal establishment + mr. allen who teaches government at prestigious <unk> <unk> college in california and will remain a member of the commission has spent years arguing that civil rights are individuals ' rights + he last made waves when he <unk> to defend an indian girl who had been adopted by <unk> parents off her <unk> + mr. allen quickly ran up against the liberal establishment again which somehow <unk> the vague concept of indian rights above the rights of individual indians + there is a huge divide between mr. allen 's <unk> view and the divisive litigation approach of the civil rights groups + indeed the gap is so large that mr. allen 's critics refuse to engage the debate + their <unk> of him is no substitute for argument + their effort to run him out of washington is an embarrassment to the original purpose of their own movement + we hope the next head of the civil rights commission will be as <unk> as mr. allen in making the case for <unk> of civil rights + bearings inc. said its chairman john r. <unk> will retire as an officer of the company on jan. N + george l. <unk> president and chief executive officer will become chairman and chief executive upon mr. <unk> 's retirement + john c. <unk> executive vice president and chief operating officer will become president and chief operating officer + mr. <unk> N years old was chief executive of the distributor of bearings and <unk> products from N to N + he will continue as a director + mr. <unk> N a <unk> veteran at bearings has been president since N + mr. <unk> N joined bearings in august N from leaseway transportation corp. where he was president and chief operating officer + he has been a bearings director since N + the appointments are part of a planned succession at the company + soviet leader mikhail gorbachev opened a major u.s. trade exhibition in moscow and spent two hours <unk> some of the N <unk> representing such blue-chip companies as general motors corp. international business machines corp. and johnson & johnson + at the <unk> co. stand mrs. nelson rockefeller a board member offered him a <unk> burger + he did n't <unk> + the exhibition by the <unk> trade and economic council <unk> the growing u.s. interest in that nation 's market though trade between the two countries is a <unk> $ N billion + the soviet president and his prime minister <unk> <unk> spent the longest time about N minutes at the ibm stand where they got <unk> <unk> key <unk> + at the gm <unk> they barely looked at a <unk> cadillac <unk> to talk about cooperation possibilities + in beijing meantime china opened an international aviation show but the west 's <unk> on military deals and uncertainty about the nation 's stability kept many foreign <unk> away + officials said N companies from N countries including the u.s. had displays down from about N firms from more than N countries at the last show in + japanese <unk> maker daikin industries ltd. was fined two million yen $ N for exporting to the soviet union a chemical solution that could be used in <unk> systems + a daikin executive in charge of exports when the <unk> <unk> <unk> was sold to the soviets in N received a suspended <unk> jail sentence + judge <unk> <unk> told the osaka district court daikin 's responsibility is heavy because illegal exports lowered international trust in japan + sale of the solution in concentrated form to communist countries is prohibited by japanese law and by international agreement + a soviet legislative panel rejected as not radical enough a government proposal on <unk> economic control + the newspaper <unk> <unk> said the committee decided the plan to parcel out economic powers previously exercised by moscow to the country 's N republics does n't reflect the radical changes in the soviet federation + the committee gave the government until nov. N to revise the proposal + the move reflected the growing confidence of the revamped supreme soviet + scott paper co. said it is abandoning a proposed $ N million <unk> project in indonesia because it no longer expects to use as much <unk> pulp as previously anticipated + the <unk> <unk> and pulp mill which would have covered about N acres in the <unk> <unk> region had been approved by indonesia 's investment board + but it was opposed by some environmentalists as a threat to <unk> <unk> 's <unk> and a potential source of social unrest for the <unk> <unk> who <unk> them + <unk> <unk> co. of japan is moving its <unk> headquarters and holding company to hong kong to gain from the british colony 's economic advantages and tax structure + with funds of N billion hong kong dollars us$ N million the new company <unk> international co. plans to acquire N of hong kong 's top restaurants + it also intends to set up an international wholesale market with the singapore government next may and to open a department store in <unk> and shopping centers in malaysia taiwan canada chicago and seattle by december N + the chain currently has N retail outlets in japan seven in the u.s. three in hong kong and a dozen more scattered around the globe + major european auction houses are turning increasingly to specialized sales + christie 's will soon have a sale of <unk> and <unk> art while sotheby 's is <unk> collectors with sales of swiss german spanish australian and canadian paintings + in brussels hotel de <unk> <unk> auctioned <unk> and <unk> along with paintings and <unk> + berlin 's <unk> <unk> will auction art works with <unk> estimates of less than $ N on nov. N + the auction house known for its sales of <unk> 19th and 20th century works is providing a service to clients who do n't want to sell just their <unk> oil paintings says <unk> <unk> 's <unk> reuter + <unk> <unk> <unk> is less concerned with market <unk> than with belgium 's <unk> tax and <unk> burden + everything has to be the same between countries says <unk> 's <unk> <unk> who is asking clients to sign protest <unk> + then there 'll be fair competition + ending tax-free shopping in the european community after N could threaten more than N jobs the international duty free confederation said + instead of banning such shopping the confederation proposed <unk> controls to be sure the privilege is n't abused + british and <unk> diplomats opened talks in madrid aimed at restoring ties <unk> because of their N war over the <unk> islands + britain 's u.n. representative and delegation head <unk> <unk> called the first meeting good interesting and <unk> + polaroid corp. benefiting from <unk> savings reported a strong gain in third-quarter operating results and net income of $ N million or N cents a share after <unk> requirements + analysts said the numbers were better than expectations partly because of strong profit margins and a positive foreign-currency translation + however they said the company 's flat revenue was a disappointment and an indication that sales of polaroid 's new conventional film in the u.s. have been sluggish + revenue in the third quarter was $ N million almost unchanged from $ N million a year earlier + polaroid reported operating profit before taxes and interest costs of $ N million for the third quarter more than double the <unk> $ N million + charges for staff cuts and other restructuring produced a net loss of $ N million or N cents a share in N 's third quarter + i 'm somewhat skeptical about the underlying demand for polaroid products said michael <unk> an analyst with wertheim schroder & co + if you believe that a good performance next year is contingent on an acceleration of revenue there is n't a lot here to base optimism on + alex henderson an analyst with prudential-bache says polaroid officials told him yesterday that u.s. sales of the company 's new conventional film product introduced in the second quarter have been disappointing after a promising start + sam <unk> a polaroid spokesman said i do n't know about disappointing but added that the company has n't been able to get the product on the shelves of some <unk> discount retailers that it had hoped would be carrying the product already + mr. <unk> said the film one film is currently carried at about N retail outlets including <unk> and supermarkets + for the nine months polaroid reported earnings of $ N million or $ N a share + last year the company had a nine-month loss of $ N million or N cents a share + in new york stock exchange composite trading polaroid closed at $ N up $ N + why is the stock market suddenly so volatile + yesterday the dow jones industrial average did a now familiar dance it plunged N points before lunch with most of the drop <unk> in N minutes + then it rebounded to finish down only N points + and those swings <unk> <unk> friday 's 190.58-point plunge and monday 's <unk> recovery + it 's <unk> that in an hour you can <unk> off so much value says stanford <unk> chairman of trinity investment management corp. boston + and apparently it is here to stay + richard bernstein senior <unk> analyst at merrill lynch & co says my gut feel is that we 'll live with those swings for a while + there are many reasons for the market 's <unk> new trading vehicles such as stock-index futures and options computer-driven strategies like program trading and crowd psychology + but most are linked by a single theme liquidity the ability to get in and out of the market quickly + prices are moving up and down so fast because investors are <unk> ways to turn over shares at <unk> rates and increasingly acting in concert + institutions are <unk> animals says peter anderson who heads the <unk> management arm of <unk> financial services inc + we watch the same indicators and listen to the same <unk> + like <unk> we tend to move in the same direction at same time + and that naturally <unk> price movements + institutions who now account for most trading count on being able to buy and sell big blocks of stock at an <unk> + but when they discover that markets are n't always as liquid as they supposed markets jump + on monday for instance howard ward a principal at <unk> stevens & clark found that you could n't buy <unk> at quoted prices without paying up + and when many firms had to pay up monday 's sudden rally was sparked + trading in futures and options some people believe can add to volatility + investors believe they can can rely on such derivative securities to get in and out of the stock market without actually selling any stocks that is a way of staying liquid even when they own stocks + these and other modern trading methods tend to promote dramatic shifts in assets says george douglas first vice president at drexel burnham lambert inc + it 's the idea that what goes in easy can come out easy so that <unk> of higher volatility get built into the stock market + one new investment style called asset allocation shifts portfolio <unk> between stocks bonds and cash when computer models say one is more attractive + for instance first <unk> corp. an asset <unk> based in morristown n.j. said it quickly boosted stock positions in its aggressive accounts to N N from N N to take advantage of plunging prices friday + it added another N N monday before stocks rallied + when they did the firm reduced those stock holdings to about N N + a classic example of institutions ' <unk> for liquidity is portfolio insurance now widely <unk> + before the N crash an estimated $ N billion in institutional money was managed under this hedging technique + the idea was to insure the value of a portfolio by selling futures when stock prices dropped eliminating the need to sell the stocks themselves + but in october N when portfolio insurers rushed to sell at the same time they <unk> both the stock and futures markets + yet even today institutions are quietly practicing forms of portfolio insurance by nervously rushing to and <unk> in the markets + others are doing index arbitrage a strategy of taking advantage of price discrepancies between stocks and futures + unlike traditional <unk> strategies all of the above require that market makers be on hand to provide liquidity by buying and selling stocks in a crunch + but institutions say wall street brokerage firms are less willing to make markets + brokers do n't deny that + wall street traders say that with institutional brokerage commissions far lower than in the 1970s securities firms ca n't afford to take the risk of buying too much stock + i think everyone 's a little more leery says jack baker head of equity trading at <unk> lehman hutton inc + the institutions have driven commission rates down to the point where it makes no sense to commit capital says tom <unk> senior executive vice president in charge of institutional trading at oppenheimer & co + why should i risk money for a guy for who 's paying me five cents a dance + all you get is risk + lack of liquidity can also result from exchange reforms + many traders say that circuit breakers put in place to damp volatility after the N crash actually added to volatility when the stock market plunged friday + the circuit breakers caused a <unk> shutdown in trading in standard & poor 's 500-stock index futures contract as the markets were falling + with the <unk> halt you could only sell stocks to cut exposure to the market says a money manager + it was scary to people thinking that they could n't get their trades off + it was like they put you in a room with a <unk> and told you there were three doors to exit said one chicago-based futures trader + then they said by the way two of the doors are locked + the takeover mania also adds to volatility + ual corp. is a good example + valued as a buy-out target the airline stock was trading at nearly $ N a share + when the deal ran into trouble the stock tumbled it closed at $ N yesterday + presumably ual is now trading closer to its value based on earnings + by contrast traditional <unk> investors are unlikely to generate sudden price moves + scott black a <unk> money manager who heads <unk> management inc. points out that for those who invest on fundamentals the value of a stock from day to day does n't change all that much + some experts say markets are n't as volatile as widely assumed + <unk> stoll finance professor at <unk> university says the current volatility in u.s. markets <unk> in comparison to the 1930s decades before derivative instruments such as options and futures were introduced + i just ca n't believe that the <unk> in the financial market are causing any of this volatility he says + and robert d. <unk> president of asset <unk> first <unk> notes that before friday 's tailspin daily volatility on the new york stock exchange in recent weeks had reached historically low levels + some people tend to ignore that a <unk> move is less in percentage terms than it was when the stock market was lower + john j. phelan jr. chairman of the big board asserts that N and N have been two of the least volatile years in the last N or N years + but the low average volatility mr. phelan is talking about is n't any comfort in a period of rapid stock-market moves like the past week + in addition sanford <unk> a <unk> school finance professor says volatile <unk> in stock prices will continue as long as liquidity falls short of the <unk> demands of institutions who can go out and say i have a billion dollars of stocks to sell + some people think the search for liquidity is <unk> + in N john maynard <unk> wrote that of the <unk> of orthodox finance none surely is more <unk> than the <unk> of liquidity + it leads investors to focus on short-term price movements a game of musical chairs he called it rather than on long-term fundamental valuation + james a. white contributed to this article + the national aeronautics and space administration said a computer virus has infected one of its networks and is spreading anti-nuclear messages related to its galileo space probe which is to be launched today + charles redmond a nasa spokesman said the agency discovered the virus on monday on the collection of computer networks <unk> called <unk> and expected N university centers to be infected by today + although the network is n't connected to the computer systems that operate either galileo or the shuttle part of the network will carry <unk> of galileo data once the craft gets <unk> + mr. redmond said the <unk> had n't yet done any harm but the agency feared garbage data could be <unk> for real data + he estimated it could take a day for a computer security manager to <unk> the virus from a computer system + the <unk> among the <unk> yet to hit a research network appeared to affect only digital equipment corp. hardware that uses digital 's <unk> operating system + it is unrelated to the <unk> virus that last year infected <unk> a much larger network used by researchers at universities laboratories and government agencies around the world + in the <unk> of computer security the nasa <unk> is technically a computer worm mr. redmond said + a worm <unk> in the operating system of a computer and spreads by boring into other computers contacted through networks + the galileo worm apparently was <unk> on a computer in france <unk> up to nasa 's space physics analysis network mr. redmond said + nasa said the galileo worm had n't affected its computers or the computers of other government agencies because they had modified their systems to reject <unk> + but mr. redmond said the worm hit universities that had n't elected to make the changes + michael alexander a senior editor at <unk> a trade publication said he was told that the worm gets into a computer center by looking for obvious <unk> such as ones that are the same as the user 's name + if it finds one and gets into the system it will display a screen when a user <unk> on that says <unk> against nuclear <unk> + you talk of times of peace for all and then prepare for war + in addition mr. alexander said the worm sends strange messages to other machines at the center such as george <unk> was an <unk> or do n't feed the <unk> tonight + the worm also looks for <unk> <unk> that <unk> more privileges on the user + the <unk> are included in the system software when it is installed but are supposed to be replaced as soon as the system is up and running + if it finds one of those <unk> mr. alexander said the worm will do such things as change users ' <unk> to a series of random numbers preventing them from signing on to the network + nasa estimated that on monday about four computer centers were affected + yesterday the number grew to N today the number is expected to grow to N + nasa said it will take about a week before it knows exactly how many centers of the N connected to <unk> were affected and the extent of the damage if any + anti-nuclear activists have <unk> the launch of the galileo space probe to jupiter because it uses <unk> to generate the electricity needed to run the craft + activists fear that if the shuttle carrying galileo into <unk> should <unk> or if galileo itself crashes into the earth during the two times it flies close to the planet fatal levels of <unk> would be released into the atmosphere + so far galileo has been delayed twice once because of a computer <unk> connected with a <unk> engine and yesterday because of the weather + nasa said the galileo worm had nothing to do with either delay + mr. alexander of <unk> said <unk> have gone after span before + he said the chaos computer club of west germany once managed to <unk> span and do such things as change the value of <unk> <unk> up some calculations + it is now a <unk> that prosecutors are bringing criminal <unk> in cases where until a few years ago only a civil action at most would have been brought + yet it is also <unk> that the power to create new crimes belongs only to the legislature and not to courts + beginning in the early 19th century with u.s. v. hudson and <unk> the supreme court has repeatedly held that a judicial power to declare conduct to be against the public interest and hence criminal while well established in british law would <unk> legislative authority under the doctrine of separation of powers + that 's the conventional theory anyway + in practice however the line between interpretation and <unk> of the criminal law long ago began to <unk> + in particular a common law of white-collar crime has developed with surprising <unk> over the past decade + for example although insider trading has long been criminal it has never been <unk> defined + in N the supreme court tried to supply a <unk> definition in the <unk> v. sec decision which found that liability depended on whether the <unk> had <unk> his fiduciary duty to the corporation in order to obtain some personal gain and whether the <unk> knew or <unk> <unk> this fact + gradually however lower courts and prosecutors have pushed this definition to its breaking point + consider the facts underlying the N conviction of robert chestman + prior to a tender offer by <unk> for <unk> inc. in N the founder of the <unk> 's supermarket chain called an elderly relative to tell her to <unk> her stock certificates for delivery + she called her daughter to take her to the bank who in turn persuaded her husband a mr. <unk> to run this <unk> + hearing of this information the husband discussed it with his broker mr. chestman and mr. chestman then bought for his own account and other clients + basically mr. chestman was a <unk> <unk> + did mr. <unk> his <unk> breach a fiduciary duty and if so to whom + did mr. <unk> seek personal gain and if so how + or did mr. chestman only hear a market rumor which one may <unk> trade upon + the line seems <unk> thin for <unk> purposes + a second illustration is supplied by the recent guilty plea entered by robert freeman formerly head of arbitrage at goldman sachs & co + essentially mr. freeman had invested heavily in the beatrice leveraged buy-out when he was told by another prominent trader bernard bunny <unk> that the deal was in trouble + after placing orders to sell mr. freeman called martin <unk> an investment banker at kidder peabody & co. who was advising on the deal to confirm these rumors + mr. <unk> asked mr. freeman who his source was and on hearing that it was bunny <unk> responded well your bunny has a good nose + the illegal tip of the bunny 's good nose was then largely a confirmation of rumors already known to many in the market + had the case gone to trial the same issues would have surfaced + was there a fiduciary breach in order to obtain personal gain + did mr. freeman have notice of this + finally was the information material + yet all these issues are subsidiary to a more central issue who is and who should be making the criminal law here + it is not my <unk> that either mr. chestman or mr. freeman was an innocent victim of prosecutorial <unk> + <unk> both were on notice that their behavior was at least risky + but even if they behaved <unk> reasons still exist to fear and resist this steady process of <unk> judicial extension of the law of insider trading + courts and legislatures make decisions in very different ways and are each susceptible to very different kinds of errors + <unk> judicial examination of an actor 's conduct has always been the common law 's method + when only civil liability is involved this method has the <unk> strengths of <unk> <unk> and <unk> of <unk> + still <unk> <unk> decision making of this sort is vulnerable to the tunnel vision caused by a <unk> on ad <unk> and usually <unk> examples + when a court decides that a particular actor 's conduct was <unk> and so <unk> the definition of insider trading to reach this conduct it does not see the potentially enormous number of other cases that will be covered by the expanded rule + thus a court is poorly positioned to make judgments about the social utility of the expanded rule + for example in focusing on mr. freeman 's attempt to gain <unk> information about a deal 's collapse one does not naturally think about the reverse side of the coin what if the rumor had been false + can a security analyst call an investment banker to make certain that a seemingly <unk> rumor is in fact false + in the past not only would reputable professionals have rushed to check out such rumors with the company but companies listed on the major stock exchanges were encouraged by the exchanges to respond openly to such inquiries from securities analysts + today after mr. freeman 's plea there is an uncertainty that is both unfair and inefficient + in this light the <unk> advantages of legislative <unk> become clear N before it acts the legislature typically will hear the views of representatives of all those affected by its decision not just the immediate parties before the court and N the legislature can frame bright line standards that create less uncertainty than the <unk> decisions of courts + although legislative lines can result in <unk> which explains why the sec has long resisted a legislative definition of insider trading judicial <unk> inevitably creates uncertainty because of the <unk> outer <unk> and implications of most judicial decisions + at least when the stakes are high uncertainty in turn results in <unk> as individuals do not <unk> to approach an uncertain line closely + the federal mail and wire fraud statutes provide even better <unk> of the rapid evolution of a federal common law of white-collar crime + in N the supreme court attempted in <unk> v. u.s. to halt the <unk> expansion of these statutes by adopting a rule of strict construction for <unk> criminal <unk> + yet late last year congress effectively reversed this decision by <unk> a <unk> statute that defined fraud to include any scheme to <unk> another of the <unk> right of honest services + at a <unk> this may <unk> all fiduciary <unk> and possibly all <unk> by an agent or employee + such a statute illustrates the fundamental problem congress finds it is easier to pass <unk> <unk> <unk> which the courts must thereafter interpret than to engage in the difficult <unk> <unk> that are <unk> its responsibility + we are confronted less with a judicial power grab than with a legislative <unk> + predictably when confronted with morally dubious behavior prosecutors will exploit the <unk> such <unk> statutes give them + over the long run however <unk> cases will make bad law + mr. coffee is a professor at columbia law school + corning inc. posted a N N decline in third-quarter net income to $ N million or N cents a share from $ N million or $ N a share a year earlier + the year-earlier figure included a one-time gain of $ N million from the sale of corning 's stakes in japanese businesses + without the gain operating profit was $ N million or N cents a share + the telecommunications specialty glass ceramic products and <unk> concern said the latest quarter included a tax-loss carry-forward of $ N + a year earlier net included a $ N <unk> carry-forward + sales rose N N to $ N million from $ N million + corning 's chairman and chief executive officer james r. <unk> said operating performance continued to be strong in the telecommunications and health and science segments + but the <unk> segment slowed somewhat and consumer products continued below expectations + as for joint ventures mr. <unk> said profit was essentially flat due primarily to a slow recovery at <unk> co. in korea following a strike at a major customer and the disruption of shipments to china + also profit was hurt by the strength of the dollar overseas which <unk> affected the company 's <unk> rate + in new york stock exchange composite trading corning closed at $ N down N cents + ual the <unk> stock that exploded friday 's market <unk> briefly <unk> traders again yesterday + within N minutes after an N a.m. trading halt in ual parent of united airlines the dow jones industrial average plunged nearly N points to a <unk> deficit + computer-guided buying then kicked in and the industrials regained N points in five minutes + the <unk> moves show that the stock market remains fragile and volatile ready to jump at the <unk> rumor a few days after its <unk> 190.58-point plunge + nervous investors continued to limit their buying to blue-chip stocks while <unk> <unk> issues + the industrial average closed down N to N + new york stock exchange volume was a heavy N shares + decliners on the big board outnumbered advancers N to N + ual was watched closely and traded heavily + the stock tumbled N N to N on volume of N million shares + the market is still very touchy about rumors and news on pending takeovers + ual which is trying to <unk> a buy-out bid that banks would n't finance represents the future of one of the most powerful <unk> in the bull market corporate restructuring + an important element of this phenomenon the <unk> market for junk bonds used often to finance restructurings and takeovers continued to cast a pall over stocks + it was a very nervous day said john <unk> partner of the big board specialist firm <unk> <unk> + the volatility wo n't end soon + this friday brings the double <unk> hour wall street 's <unk> for the monthly simultaneous expiration of a variety of stock index futures index options and options on individual stocks + traders are already <unk> their seat belts + previous monthly <unk> of the major market index futures and standard & poor 's <unk> index options have produced spectacular volatility + we are in one of those <unk> where you are going to get a lot of volatile expiration action said donald <unk> head of stock-index research at prudential-bache securities + investors were buying yesterday but they were running scared to premier blue chips such as procter & gamble which jumped N N to N + investors are buying stocks that have predictable earnings said edward j. <unk> head of block trading at kidder peabody + along the way investors dumped takeover stocks and shares of banks that have <unk> debt and risky real estate loans on their books + these loans are more of a focus than <unk> debt now said william <unk> senior block trader at prudential-bache securities + chase manhattan which sold N million additional shares at N N monday through an underwriting group led by goldman sachs closed down N to N + citicorp fell N to N and manufacturers hanover slipped N to N N + chase and citicorp 's citibank are involved in the ual buy-out financing + both citicorp and manufacturers hanover reported earnings yesterday + in the first hour of trading about one million shares a minute changed hands on the big board as big stock-index arbitrage sell programs pushed prices lower + in stock-index arbitrage traders buy or sell big baskets of stocks against offsetting positions in futures + traders said many of the sell programs are positions being established ahead of this friday 's expiration + aside from computer-guided selling airline stocks took a beating as well + the dow jones transportation average fell N to close at N + amr the parent of american airlines continued to retreat in the wake of new york developer donald trump 's decision to withdraw his $ <unk> takeover bid + the stock fell N N to N N on N million shares + delta air lines fell N N to N N usair group dropped N to N N southwest airlines dipped N to N and alaska air group slid N to N N + but texas air the owner of continental and eastern airlines <unk> the group 's decline by rising N to N N in american stock exchange trading + eastern said it is ahead of schedule in <unk> its operations after filing earlier this year for chapter N bankruptcy protection from which it expects to emerge early next year + philip morris the most active big board issue for the second consecutive session was unchanged at N N on N million shares + other blue-chip consumer issues also fared relatively well pepsico rose N N to N N coca-cola co. was unchanged at N N mcdonald 's also closed unchanged at N N and merck rose N to N N + broader averages also fell + standard & poor 's 500-stock index fell N to N and the new york stock exchange composite index fell N to N + among the <unk> stocks that sold off yesterday were disney which closed down N N to N N + <unk> industries tumbled N to N N hilton hotels fell N N to N and holiday corp. fell N N to N N + among other blue chips exxon gained N to N N + international paper fell N N to N N union carbide eased N to N chevron gained N to N and eastman kodak closed down N to N N + the only industry group to show a gain from the industrial average 's record high on oct. N is restaurants + among the three <unk> groups with declines of N N to N N are airlines casinos and securities brokers + trading also was heavy in the over-the-counter market + the nasdaq composite index closed down N to N on volume of N million shares + the environment is a lot more <unk> said gary <unk> manager of equity trading at the otc stock firm needham & co. in new york + because there is a lot more volatility now if guys see that they can make a quick N N or N N profit they 'll take it + compaq computer gained N N to N N on two million shares reflecting market optimism about the prospects for its newly introduced <unk> computer + <unk> <unk> dropped N N to N N + the company 's third-quarter earnings were below both analysts ' forecasts and the year-earlier level + blue arrow added N to N N + the british company plans to change its name to manpower the name of its u.s. unit and write off part of nearly $ N billion in good will as a possible prelude to <unk> in the u.s. + <unk> rose N to N N + shearson lehman hutton began its coverage of the company with favorable ratings + <unk> jumped N N to N N + the company reported that earnings from operations for the september quarter were up about N N from a year earlier + bay financial which said it may be forced to file under chapter N if it ca n't reach an agreement with its lenders to relieve its debt burden plunged N N to N N + the amex market value index fell N to N + volume totaled N shares + among active amex issues the american depositary receipts of b.a.t industries fell N to N N on turnover of N + investment bankers and retailers said the turmoil on wall street may benefit managers who plan to bid for u.s. retailing units of the british firm because takeover prices may not be as high as before the recent correction + fruit of the <unk> slipped N to N N on N shares + <unk> corp. jumped N N to N on N shares + carnival cruise lines class a dropped N to N N on N shares + amex issues with big percentage price gains included two eastern air lines preferred stocks reacting to the news about improved recovery in flight schedules after the company filed for bankruptcy protection + eastern 's class f preferred rose N N or N N to N N the class e preferred gained N N or N to N N + the biggest percentage <unk> on the amex was enviropact which jumped N N or N to N N on volume of N shares + on monday the company a provider of environmental consulting services reported a wider fiscal fourth-quarter loss and predicted a loss for its fiscal N first quarter but said a profit is expected for all of fiscal N + but its <unk> ernst & young said enviropact 's financial situation raises substantial doubt about its ability to continue as a going concern + mission resource partners advanced N N or N N to N N + <unk> <unk> and david wilson contributed to this article + one liberty properties inc. declared a dividend of N cents a share on its $ N cumulative convertible preferred stock payable jan. N to stock of record dec. N + but directors of the great neck n.y. real estate investment trust did n't act on the common stock dividend + and they wo n't consider such a dividend the trust added before results are available for the first quarter of N + in part the trust cited the need to retain cash for possible acquisitions + according to a spokesman one liberty will have paid out as dividends the required amount of its taxable income to maintain its legal status as a real estate investment trust + banks are continuing to go after individual investors despite falling interest rates + yields on <unk> certificates of deposit fell at about half the rate of so-called jumbo cds this week according to banxquote money markets an information service based here + investors can get slightly higher yields on deposits below $ N than they can on deposits of $ N and up + banks want to remain competitive said <unk> mehl chairman of banxquote + october is a big <unk> month and perhaps they anticipate greater demand among people leaving the stock market + some bankers are reporting more inquiries than usual about cds since friday + reports from branches are that there has been greater interest in the last day or so said steven <unk> a vice president at chemical bank in new york + chemical said deposits monday were about $ N million higher than usual and it expects more activity as investors receive the proceeds from sales of stock + this is no time to be playing in the street + the dow has more ups and <unk> than an <unk> proclaimed an <unk> monday in new york newspapers touting lincoln savings bank 's one-year cd + harold jones lincoln 's chief retail banking officer said there has n't yet been a <unk> response although the ad included a coupon that could arrive later in the week + friday 's market rout came <unk> in the middle of the heaviest month for cd <unk> when a number of banks and thrifts already have promotions under way + first national bank of boston for example is offering certain new <unk> an extra quarter of a percentage point on six-month and 12-month cds + some banks actually boosted yields on the <unk> term cds in the latest week + new york 's citibank for instance increased the yield on <unk> three-month cds to N N from N N + on average however three-month cds at major banks are yielding a <unk> of a percentage point less than they were a week ago + average yields on cds aimed at individual investors fell less than half as much as yields on treasury bills sold at monday 's auction + six-month cds of $ N and less yielded an average N N in the week ended tuesday down from N N according to banxquote + the yield on six-month <unk> fell to N N on monday from N N the week before + meanwhile the average yield on six-month cds of more than $ N fell to N N in the latest week according to banxquote from N N the week before + mr. mehl noted that actual rates are almost identical on small and <unk> cds but yields on cds aimed at the individual investor are boosted by more frequent <unk> + cds sold by major brokerage houses which like jumbo cds tend to closely follow interest rate trends also posted larger drops in yields + a six-month <unk> cd for example was yielding an average N N in the latest week a fifth of a percentage point lower than the week before + in late april when interest rates were at their recent highs short-term cds sold by brokers were offering yields half a percentage point or more higher than banks + cd yields are generally expected to fall further in coming weeks + what happened in the stock market and the bigger trade deficit reported yesterday make it unlikely that short-term interest rates will rise any time soon said mr. mehl of banxquote + even before the market drop rates were down about half a percentage point said robert j. hutchinson senior vice president for retail marketing at manufacturers hanover trust co. in new york + that puts pressure on cd rates + conservatives have an important decision to make this fall + at the recent meetings of the world bank and international monetary fund the bush administration announced its intention to decide by <unk> the size of the next increase in the imf 's capital base + while the u.s. share of the increase probably will not reach the $ N billion or more implicit in the imf 's request for a doubling of its $ N billion capital the administration probably will agree to a multibillion-dollar increase + this would be consistent with its <unk> support for the brady plan and <unk> exchange-rate intervention and with its financial commitment to mexico poland and others + the imf has several reasons for <unk> the increase + its role in the economies of developing countries has grown steadily since the 1970s + the size and pace of <unk> will accelerate further under the brady plan which promises larger and earlier <unk> to approved countries + at least three other factors have encouraged the imf to insist on increased capital + first it argues that its capital base must be increased in order to maintain its size relative to world financial markets for which it feels some responsibility + second the world bank 's recent $ N billion capital increase $ N billion from the u.s. has left the imf feeling less than first <unk> among international financial institutions + third the imf would like to meet japan 's request for increased ownership currently N N + japan has supported a larger role for the imf in developing-country debt issues and is an important financial resource for <unk> programs in developing countries + while international politics may argue for the capital increase there is a clear economic case against it + opponents of the increase argue that the imf practices central planning while supporting <unk> governments + they question whether the imf has any role in developing countries given its original mandate to assist industrial countries in <unk> <unk> + opponents show that there are already more funds available than <unk> reform efforts + they worry that new imf funding of developing countries will simply end up <unk> imf debt for <unk> commercial bank debt a bad trade all around + they believe <unk> which addresses the problems of markets investment climate and management practices is the key to developing-country growth not the imf 's <unk> focus on trade deficits quarterly targets and government debt + they point at the numerous developing-country governments that have inflated taxed and regulated themselves into <unk> under <unk> imf programs + decisions on increases in the imf 's capital base traditionally are made by the administration with subsequent authorization by congress + the last u.s. congressional authorization in N was a political <unk> and carried a $ N billion housing program along with it to secure adequate votes + the politics of the N congressional authorization are likely to be similar to those of previous <unk> + liberals may support the stabilizing <unk> role of the imf on two conditions that the administration give assurances that liberal democrats ' support will not be used against them in congressional re-election campaigns and that the legislation address with dollars social and environmental concerns + conservative republicans will be given the choice of supporting or fighting their party 's popular president in an election year + a u.s. decision to refuse the imf its capital increase or limit it to N N would bring a major change in international economic policy and could not be taken <unk> + <unk> would <unk> over the implications for the <unk> coordination process and the stability of world financial markets + because commercial banks and the developing-country governments believe they will get a piece of any capital increase a <unk> imf mission would leave both feeling <unk> + furthermore a u.s. rejection of the capital increase and transfer of shares to japan would give japan an argument against future calls for economic <unk> + on the other hand a decision to increase the imf 's capital would reinforce the central economic role of <unk> institutions in developing countries + with the increase even more developing-country energy and talent would be diverted from creating profitable economic systems to setting up economic planning ministries that generate <unk> economic plans + <unk> the <unk> could slow economic development even further as countries delay <unk> steps in anticipation of richer <unk> support + conservatives should take a position prior to the administration 's year-end deadline + the issues are too important to be left to the financial and budget ministries fighting over the size of the capital increase rather than its purpose + if conservatives do n't support an increase in the imf 's capital then it is incumbent on them to speak up now and explain the alternative + mr. <unk> directs the republican staff of the joint economic committee of congress + the chicago mercantile exchange fined and suspended two commodities traders accused of making <unk> trades with each other that allegedly <unk> a customer + merc officials said gary n. roberts was disciplined following the exchange 's investigation of his trading in several commodities pits from july to november N + the merc said mr. roberts withheld from the market certain orders in cooperation with another trader david stein + the merc fined mr. roberts $ N and suspended his trading membership for three years + also he and mr. stein were ordered to make <unk> of $ N to a customer + mr. stein was fined $ N and suspended for three years + messrs. roberts and stein could n't be reached for comment + the merc said that as part of the disciplinary settlement neither man admitted nor denied the alleged violations + neither was among the N traders indicted last august in a federal investigation of traders at both the merc and the chicago board of trade + in a move that could pose a new competitive challenge to time warner inc. 's powerful home box office cable giant tele-communications inc. agreed to buy half of showtime networks inc. from viacom inc. for $ N million + the purchase comes after nearly three years of <unk> <unk> talks between tci and viacom which has also discussed the sale of an interest in showtime with other cable operators + showtime is a distant no. N to home box office and in may filed a $ N billion antitrust suit against time warner charging the company and its hbo and american television cable units with conspiring to <unk> the pay tv business + hbo has close to N million subscribers to its hbo and <unk> networks while showtime and its sister service the movie channel have only about N million according to paul <unk> associates a <unk> calif. research firm + for tci the investment in showtime puts it in an unusual position as the largest cable operator with control of close to N million of the nation 's N million cable subscribers tci is hbo 's largest customer + but tci president john <unk> has long been concerned about hbo 's dominance of the pay tv business and has been eager to keep showtime as a healthy competitor + it is important to the cable industry that we have a <unk> and competitive <unk> marketplace mr. <unk> said in a statement + in a telephone interview robert thomson tci senior vice president said showtime 's suit against hbo does n't involve us and nothing we 're doing here bears any relationship to that + he added we do n't intend to be drawn into it noting that tci wo n't play any active role in the management of showtime + linking up showtime with the largest cable operator in the u.s. could sharply boost its subscribers + tci said it may bring in other cable operators as investors a practice it has employed in the past with investments in other cable networks such as the discovery channel + additional cable partners could boost subscribers even further + time warner declined comment + in addition to owning hbo time warner owns american television & communications inc. the nation 's second largest cable operator after tci + viacom also owns cable systems but it is the <unk> largest operator of such systems with less than one million subscribers + the tci investment is a big victory for viacom 's chief executive officer frank <unk> and <unk> h. cox president of the showtime unit + this takes any question of showtime 's viability and puts it away once and for all mr. <unk> said in a telephone interview + the fight between hbo and showtime is particularly <unk> because mr. <unk> is the former chief executive of hbo and mr. cox served as chief of marketing for the service + they were both hired by <unk> <unk> the boston billionaire who took control of viacom three years ago in a leveraged buy-out + time warner has vigorously denied all of viacom 's allegations + boeing co. already struck by its machinists union briefly called off contract talks with its engineers and labeled their demands grossly excessive + later however the company agreed to meet on monday with the seattle professional engineering employees association after a federal mediator intervened according to the union + a spokesman for the engineers said the company asked the union to reduce its demands which included a N N pay <unk> in the first year and N N in the second and third years + the union represents about N engineers and technical workers + its contract expires dec. N + meanwhile a federal mediator is scheduled to meet today with boeing officials and representatives of N striking machinists + it will take several meetings to resolve this said a spokesman for the machinists union + we do n't want to bring back something the members will reject + machinists already have rejected a package that would have provided a N N pay raise plus bonuses over the three-year life of the contract + it also would have reduced mandatory overtime + investor <unk> edelman increased his stake in intelogic <unk> inc. and cleared the way for additional purchases + it was n't clear however whether the actions were related to a battle between the corporate raider and new york attorney martin ackerman for control of datapoint corp. a san antonio <unk> <unk> systems maker + intelogic <unk> a computer services company was spun off to datapoint holders in N after mr. edelman gained control + after mr. ackerman announced he was soliciting <unk> from shareholders in order to <unk> control of datapoint from mr. edelman the corporate raider purchased N N of datapoint 's shares + in a securities and exchange commission filing mr. edelman said from sept. N to oct. N he acquired N shares of intelogic common shares for $ N to $ N each + the purchases increased his stake to N N of the shares outstanding + the filing also said certain provisions which apply to persons acquiring N N or more of intelogic common stock were <unk> by intelogic for mr. edelman who is chairman of the company + mr. edelman could n't be reached for comment + the federal government should make free voluntary testing for the aids virus the <unk> of an expanded campaign to stop the spread of acquired immune deficiency syndrome the hudson institute recommended + by encouraging massive routine voluntary testing we can enable society to voluntarily <unk> itself <unk> into two groups those who carry the virus and those who do not the indianapolis research organization said in a new report + the report takes a more alarmed view of aids and recommends a more sweeping response than many other <unk> + it warns that the aids <unk> may reduce the rate of growth of the work force curb productivity gains and slow economic growth + it contends that current government policy is failing to stem the aids <unk> because it suggests the use of <unk> can make sex safe + but the report says the only safe sex is sex between <unk> partners and testing is the only way to learn of infection + hudson 's researchers estimated that it would cost less than $ N million a year to test the entire population between the ages of N and N years old + in addition the report recommends that federal and state governments provide free treatment to all who test positive + an unexpectedly sharp widening in the u.s. trade gap for august dragged the dollar lower tuesday but profit-taking on short positions helped the currency rebound to close mixed against major counterparts + while the market kept careful <unk> on wall street 's gyrations it <unk> off a modest downturn in equities to bid the dollar well above the day 's lows + soon after the release of the u.s. trade figures the dollar plunged to an intraday low of N yen + it also declined against the mark but did n't reach its intraday low of N marks until two hours later + the unit stabilized about midday new york time at around N marks and N yen prompting <unk> rumors that the u.s. federal reserve had intervened to blunt the unit 's tumble + the dollar finished at its intraday highs + dealers noted that the foreign exchange market 's initial bearish reaction to the u.s. trade figures was <unk> later by a <unk> <unk> of the data + the u.s. commerce department reported a $ N billion deficit in august compared with a revised july deficit of $ N billion + economists had expected a $ N billion gap + the august figure reflected a N N rise in imports and a N N drop in exports + marc m. <unk> an economist with manufacturers hanover trust in new york said that while the figures appear to indicate a <unk> deteriorating u.s. trade performance there 's still enough positive news in the data to justify buying dollars + he said that while the u.s. trade gap with canada has widened significantly the trade deficit with western europe and japan continues to narrow + and he added that manufactured goods exports are still rising + the dollar 's near-term path remains <unk> according to <unk> analysts who <unk> the market as <unk> + in late new york trading yesterday the dollar was quoted at N marks down from N marks late monday and at N yen up from N yen late monday + sterling was unchanged at $ N + in tokyo wednesday the u.s. currency opened for trading at N yen unchanged from tuesday 's tokyo close + later the u.s. currency fell to about N yen on news reports of the san francisco earthquake + some analysts remain bullish and point out that the dollar continues to be well bid despite key rate increases in europe and japan several weeks of aggressive dollar sales by the world central banks some traders estimate that the <unk> of sales topped $ N billion and a 190-point plunge on the new york stock exchange + they note that the u.s. unit is trading at the upper end of the presumed target zones established by the group of seven trading partners + the <unk> <unk> west germany the u.s. france the u.k. italy canada and japan + the so-called <unk> accord was seen to have set ranges of N marks to N marks and N yen to N yen + they say that the recent injection of liquidity into the u.s. banking system has been modest and they do n't anticipate significant easing by the u.s. federal reserve + the fed arranged $ N billion of customer repurchase agreements tuesday the second repurchase agreement in two days + the move which <unk> capital into the system is seen as an effort to <unk> the <unk> markets that the u.s. central bank is ready to provide the ample liquidity + but other analysts contend that while the fed 's move to loosen credit has n't been aggressive it nevertheless sends a clear signal that at least for now the fed has <unk> its grip on credit + they add that the fed has allowed the key federal funds interest rate to dip to about N N N from its levels of just below N N last week + the federal funds rate is the overnight lending rate that banks charge each other + market participants said that the mark continues to post the most significant gains against the dollar + on the commodity exchange in new york gold for current delivery settled at $ N an ounce up N cents + estimated volume was a moderate N million ounces + in early trading in hong kong wednesday gold was at $ N an ounce + national semiconductor corp. said it settled a four-year-old patent infringement case against linear technology corp. by accepting a $ N million payment from linear in exchange for granting linear <unk> licenses for all products involved + the two companies also agreed to settle any future property rights issues over the next N years through <unk> arbitration both companies said + the products are so-called <unk> integrated circuits that have applications in the consumer electronics automobile and electronic instrumentation markets + linear technology <unk> calif. called the settlement positive since products covered by the disputed patents account for about N N of its annual sales + the electronics concern said it already has paid $ N million of the settlement to national semiconductor santa clara calif. and will pay the remaining $ N million in equal <unk> over the next eight quarters + the payments are n't expected to have an impact on coming operating results linear added + nbc 's winning streak has been canceled + the national broadcasting co. a unit of general electric co. had its <unk> <unk> <unk> as the prime-time ratings leader snapped yesterday by <unk> a subsidiary of capital cities\/abc inc + in the ratings compiled by the a.c. nielsen co. abc which broadcast the world series topped the competition with a N rating and N share + nbc was second with a N rating and N share followed by cbs inc. 's television network with a N rating and N share + a ratings point represents N television households shares indicate the percentage of sets in use + the first two games of the world series between the oakland athletics and san francisco giants did n't finish in the top N instead they landed in <unk> and <unk> place + the <unk> show continues to be abc 's <unk> + nbc had five of the top N shows abc had four and cbs had one + cbs held the previous record for consecutive no. N victories N weeks during the N season + procter & gamble co. cincinnati expanding its presence in the food service market said it acquired maryland club foods a coffee supplier from an investor group led by f. philip handy of winter park fla + terms were n't disclosed + <unk> maryland club foods which had sales of about $ N million last year sells coffee under the maryland club and <unk> brands to restaurants hotels offices and airlines + the acquisition gives us additional production capacity for the food service coffee business and a stronger distribution network a p&g spokesman said + p&g already sells its <unk> ground <unk> coffee to food service concerns but not to as many markets as maryland club + for example p&g up until now has n't sold coffee to airlines and does only limited business with hotels and large restaurant chains + maryland club also distributes tea which fits well with p&g 's tender <unk> brand and hot cocoa products + the company said the acquisition has been completed and reviewed by the federal trade commission + the purchase includes a <unk> plant in omaha neb. and a leased facility in houston + macmillan <unk> ltd. said it borrowed N million dutch guilders us$ N million from a group of dutch institutional investors + macmillan <unk> a vancouver british columbia forest products concern said the N N loan is due oct. N N + funds will be used to repay existing short-term debt and to finance capital spending it said + president bush will veto a bill funding the departments of labor education and health and human services because it would allow federal funding of abortions for victims of rape and incest the white house said + mr. bush had threatened a veto previously + but he put off a firm decision while his aides and legislators searched for a compromise that would tighten requirements for such abortions in a way acceptable to the president + white house press secretary marlin fitzwater said negotiations between bush aides and lawmakers ended monday without success + most lawmakers think it will be extremely difficult for mr. bush 's opponents on the abortion issue to round up the votes needed to override the veto + but there still may be prolonged debate and political <unk> that holds up the $ N billion funding bill for the fiscal year that began oct. N + mr. bush has said he personally approves of abortions in the cases of rape incest and danger to the life of the mother + but he has opposed medicaid funding of abortions for poor women who say they are victims of rape and incest arguing that those exceptions are <unk> so <unk> that they open the way for abortions for other women + newspapers + media general inc. intends to sell two of its west coast weekly newspaper chains golden west publishing inc. and <unk> publications which together <unk> N papers + media general said it has had inquiries from potential buyers and expects to complete a sale in N + it would n't discuss a price + lee <unk> & associates is to sell the chains + j.p. morgan & co. new york will help the statutory managers of <unk> new zealand ltd. to evaluate the failed investment bank 's condition + earlier this month the reserve bank of new zealand the country 's central bank appointed the managers to run the investment bank and pay creditors + <unk> asked the central bank to <unk> managers after it revised loan-loss provisions to around the same level of shareholders ' funds of N million new zealand dollars us$ N million + <unk> is held N N by national <unk> fund new zealand 's largest pension fund and N N by salomon brothers inc. the <unk> and <unk> subsidiary of salomon inc. in new york + a spokeswoman for j.p. morgan parent of the bank morgan guaranty trust co. confirmed its appointment to assist the managers but declined to elaborate + the managers said in a brief statement yesterday that morgan will help evaluate <unk> 's position and help determine alternatives + the managers do n't expect to complete the evaluation until nov. N + an experimental vaccine can alter the immune response of people infected with the aids virus a prominent u.s. scientist said + however that does n't mean they can benefit from the vaccine + its effectiveness ca n't be determined until a large clinical trial is undertaken by the army in january according to robert <unk> chief of acquired immune deficiency syndrome research at walter reed army institute of research + dr. <unk> 's report on early experiments using an aids vaccine made by <unk> inc. of west haven conn. came at a meeting of aids vaccine researchers in florida late monday + the vaccine <unk> <unk> has been <unk> given to N people some of whom are experiencing substantial increases in certain <unk> + the conventional wisdom used to be that you could n't modify the immune response of an infected individual by <unk> them with synthetic <unk> proteins dr. <unk> said + we 've demonstrated that you can + he said certain <unk> developed kinds of <unk> associated with early aids + other <unk> sparked by the preparation are of a sort rarely present in large quantities in infected or ill individuals he added + one of the <unk> of aids remains why infected people produce large quantities of <unk> but <unk> nonetheless + cross & trecker corp. said it reached an agreement to sell its <unk> division to recently created murata <unk> inc. a u.s. affiliate of murata machinery ltd. of <unk> japan + the agreement also includes the purchase of cross & trecker 's warner & <unk> switzerland ag unit by a european affiliate of murata machinery + cross & trecker is also selling its equity interest in a japanese joint venture murata warner <unk> to murata machinery + cross & trecker a <unk> hills mich. <unk> maker said the net sales price of the total transaction is $ N million + the <unk> division was one of three businesses put up for sale in cross & trecker 's restructuring program announced in july + cross & trecker said negotiations are under way for the sale of another company <unk> + the average interest rate fell to N N at citicorp 's $ N million weekly auction of <unk> commercial paper or corporate <unk> from N N at last week 's sale + bids totaling $ N million were submitted and accepted bids were at N N + citicorp also said that the average rate fell to N N at its $ N million auction of <unk> commercial paper from N N at last week 's sale + bids totaling $ N million were submitted and accepted bids were at N N + the bank holding company will auction another $ N million of commercial paper in each maturity next tuesday + <unk> s.a. reported its N first-half profit soared N N and indicated that its previous estimate of a N N rise in earnings for all of N will be exceeded by a wide margin + the french electronics and defense group said attributable consolidated net profit for the first six months of N totaled N million francs $ N million compared with N million francs $ N million in the corresponding period of + operating profit climbed N N to N million francs from N million in the first half of N + <unk> said the sharp improvement in net profit partly reflected a decline of N million francs in the group 's net loss from nonrecurring items in the first half of this year to N million francs from N million a year earlier + there was also a decline in the group 's net financial costs to N million francs from N million a year before + these movements were offset however by a steep rise in corporate income tax payments to N million francs from N million in the first six months of N + <unk> said the sharp rise in its first-half earnings was based on a N N gain in consolidated revenue to N billion francs from N billion a year earlier + rep. lee hamilton d. <unk> said he and rep. <unk> <unk> d. <unk> are backing away from their proposal to make the treasury secretary a voting member of the federal reserve panel that sets monetary policy + rep. hamilton said the bill will be modified substantially to call for two meetings each year between the fed 's open market committee and the treasury secretary the chairman of the council of economic advisers and the director of the office of management and budget + the original bill was strongly opposed by the fed and publicly criticized by friends of the fed as an attempt to undermine the central bank 's independence + fed critics however hailed it as a long overdue attempt to bring a measure of openness and democracy to the setting of monetary policy + rep. hamilton said the purpose of the meetings would be to improve communications and perhaps coordination between the executive branch and the fed + fed chairman alan greenspan meets regularly for lunch with treasury secretary nicholas brady and talks frequently with budget director richard darman and michael <unk> chairman of the council of economic advisers + the administration officials do n't ordinarily meet with the entire membership of the open market committee + <unk> <unk> co. said third-quarter profits dropped N N because of lower prices for <unk> <unk> materials the company 's largest product group + net fell to $ N million or $ N a share from $ N million or $ N a share a year earlier + sales for the quarter slipped N N to $ N million from $ N million + <unk> <unk> capacity has <unk> demand and we are experiencing reduced profit margins as a result said john d. <unk> chairman and chief executive + prices for <unk> <unk> <unk> have dropped more than N N since last december he said + the plastic <unk> is used in a wide range of products including <unk> pipe and electrical wire <unk> + <unk> 's <unk> segment reported operating profit for the quarter of $ N million less than half the $ N million of the year-earlier quarter + third-quarter operating profit of the <unk> group declined slightly to $ N million from $ N million + but operating profit from aerospace products rose nearly N N to $ N million from $ N million + in new york stock exchange composite trading shares of the <unk> <unk> company fell $ N to $ N + fiat s.p a. italy 's leading industrial group is conducting concrete talks with west germany 's daimler-benz ag on a series of projects in the aerospace sector fiat officials said + however the officials said it was too early to disclose the nature of the proposed projects or indicate when the talks might be concluded + daimler-benz chairman <unk> reuter told milan 's financial daily <unk> sole N <unk> that talks are taking place between both companies ' aerospace units + while mr. reuter 's comments please us very much there currently are no talks in progress regarding the automotive industry a fiat spokeswoman said + in the interview mr. reuter said he is thinking <unk> of cooperation in the truck sector but in the long run i do n't want to rule out that we can also come a bit closer in personal cars + <unk> <unk> italy analyst for county natwest securities in london said that right now the market is n't being influenced by that kind of news referring to the conditional nature of the talks mentioned by mr. reuter and by the uncertainty surrounding world stock exchanges this week + paul <unk> was named president chief executive officer and chairman of this oil and natural gas company + he succeeds john a. <unk> who resigned for personal reasons + mr. <unk> had been president of penn pacific 's national southwest capital group subsidiary + mr. <unk> will remain with penn pacific as a director and a member of the executive committee + he has also agreed to become president of a new subsidiary to be formed to make future acquisitions the company said + spooked investors despite their <unk> to dump takeover stocks should hold on tight to their jaguar shares + that 's the view of some analysts here who argue that britain 's leading maker of luxury cars still may have two u.s. auto giants <unk> for it + yesterday ford motor disclosed that it has raised its holding in jaguar to N N from N N + both ford and its rival general motors recently set their sights on <unk> significant minority stakes in the british company + ford 's latest move increases the pressure on gm to complete its current talks with jaguar quickly + gm is likely to reach the cooperative operating pact it has been seeking in about two weeks knowledgeable individuals say + at that point investors may face a long <unk> ride + a victor in the fight for jaguar may not emerge until after the expiration late next year of british government takeover restrictions + the curbs prevent a buyer from purchasing more than N N of jaguar shares without permission + this is an exceptionally odd takeover battle says london analyst christopher will of shearson lehman hutton + jaguar 's american depositary receipts were up N yesterday in a down market closing at N N + jaguar 's adrs make the company one of the most widely held united kingdom stocks in the u.s. with more than <unk> of its shares owned there + jaguar topped the <unk> list for the u.s. over-the-counter market monday + and on london 's stock exchange monday N million shares were traded far above the usual volume + ford 's share purchases undoubtedly accounted for much of monday 's heavy trading + last week many jaguar shareholders took their money and ran + fears that ford 's <unk> might be cooling put jaguar shares into reverse after gm confirmed its friendly negotiations with jaguar + but yesterday 's announcement indicates that ford has n't lost interest + both shearson 's <unk> will and stephen reitman european auto analyst at the london brokerage firm <unk> & drew recently switched their jaguar recommendations to hold from buy + sit tight through the coming volatility mr. reitman suggests though he concedes that many small investors will find jaguar 's <unk> too hard to <unk> + but a crucial point is how ford <unk> when gm the world 's largest auto maker firms up its proposed deal with jaguar + at the moment ford executives will say little beyond <unk> their desire to raise ford 's jaguar stake to about N N + gm is expected to <unk> roughly # N million $ N million by acquiring some jaguar shares and then win jaguar management 's promise of an eventual N N stake + analysts believe the car makers also will create joint ventures to develop new executive models doubling jaguar 's yearly output of N cars + jaguar shareholders would have to <unk> such a far-reaching accord + ford might challenge the proposal by offering a full bid if holders and the u.k. government agreed to drop the anti-takeover barrier early + i think ford is going to come out with full guns <unk> mr. reitman says + ford wants jaguar very much + u.s. takeover-stock speculators who may own between N N and N N of jaguar could give ford enough votes to block the gm deal + gm might <unk> + then <unk> will says you get a bidding war between two very rich very determined international companies + he believes jaguar 's share price could <unk> to between # N and # N $ N to $ N + there 's quite a bit of value left in the jaguar shares here even though they have run up lately says doug johnson a fund manager for <unk> <unk> asset management + at the moment he intends to keep the firm 's N jaguar shares + the risk is that jaguar 's share price could slump if gm 's agreement with jaguar effectively <unk> out its u.s. rival + ford 's appetite to attack jaguar could gradually <unk> over time particularly if saab is a reasonably attractive proposition says john lawson an auto analyst at london 's nomura research institute + he thinks saab-scania ab on friday will announce the sale of N N of its car division to ford the companies have been discussing closer cooperation for months + clifford <unk> president and chief investment officer of <unk> capital <unk> inc. two weeks ago sold his cincinnati firm 's N jaguar adrs at about N each making a <unk> profit on a holding purchased at N N in early may + i thought the <unk> of a bidding war happening were less he says + of course that was before ford 's latest move + jaguar otc symbol <unk> + business luxury cars + year ended dec. N N + revenue $ N billion + net income $ N million or N cents a share + first half ended june N N + net loss $ N million vs. net income $ N million or N cents a share + <unk> daily trading volume ordinary shares outstanding N million + note all figures are translated into u.s. dollars based on current exchange rates + <unk> sloan N years old announced that he will retire next april as chairman and chief executive officer of this <unk> food and <unk> products maker + no replacement was immediately named + mr. sloan plans to remain on the board until his current term expires in april N a <unk> spokesman said + newport electronics inc. of santa ana calif. said milton b. hollander who holds a N N stake requested a special shareholders ' meeting next wednesday to remove four current directors and <unk> an alternative slate + mr. hollander 's high technology holding co. of stamford conn. acquired most of its stake last august in an $ <unk> tender offer for newport a maker of <unk> devices + newport said mr. hollander is asking shareholders to retain only one director james r. <unk> a newport vice president + the board is n't proposing a slate of its own and the other four current directors do n't want to serve beyond the special meeting date newport said + mr. hollander is the new owner and wants to exercise control said <unk> b. weekes newport 's chairman + <unk> ag a major swiss chemical and pharmaceutical group said that its group sales rose N N to N billion francs $ N billion in the first nine months of this year with strong gains in all divisions + a year earlier sales totaled N billion francs + positive currency rates and strong sales growth led to a substantial rise in consolidated profit in the period although the company did n't provide figures as is <unk> with swiss companies + <unk> said it expects a substantial increase in consolidated profit for the full year barring major currency rate changes + <unk> plc a british maker of computer hardware and communications equipment posted a N N plunge in pretax profit for the latest year + the # N million $ N million in pretax profit for the N months to june N was down from # N million $ N million a year earlier and below market expectations of # N million and # N million + the slump in profit which came despite steady sales was attributed to increased costs for parts and problems with model <unk> + <unk> 's profit after taxes fell a similarly steep N N to # N million from # N million a year earlier + sales edged up fractionally to # N million from # N million a year earlier + microsoft corp. 's earnings growth continued to <unk> that of most of its competitors and customers in the personal-computer industry as it reported a N N jump in fiscal first-quarter earnings on a N N revenue gain + the redmond wash. company a bellwether provider of operating systems and software for personal-computer makers and users reported net income for the quarter ended sept. N of $ N million or N cents a share up from $ N million or N cents a share in the year-ago period + revenue rose to $ N million from $ N million + microsoft previously indicated it would have a strong quarter by forecasting its revenue gain on oct. N causing a $ N a share jump in its stock + but its stock jumped again yesterday as it disclosed surprisingly strong margins on those sales + microsoft 's stock rose $ N a share in national over-the-counter trading to $ N + the stock had hit a high of $ N a share early last week but collapsed to $ N in the friday stock plunge + the company had been experiencing softening margins because of increased sales of software applications which have lower margins than do operating systems + but the company said that trend was offset in the first quarter by better economies of scale and <unk> in manufacturing + as a result microsoft 's cost of goods as a percentage of sales fell N N from the year-ago quarter and N N from the previous period + the trend drove up the <unk> margin net income as a percentage of revenues to N N in the quarter compared with N N a year earlier + microsoft officials said the strong results also reflected continuing high demand for its software applications and operating systems + while it has predicted that overall growth in unit sales of personal computers is slowing to about a N N yearly rate its own products are selling at a much faster rate because many are geared to the <unk> end of the market + that segment continues to post strong <unk> gains while the <unk> or commodity segment of the industry is experiencing sluggish growth or even sales declines + compared with its previous quarter the final period of its N fiscal year net rose N N and sales rose N N + control data corp. minneapolis signed a joint development agreement with mips computer systems inc. to <unk> an emerging computing architecture in future machines + mips is a leader in what is known as <unk> set computing or risc a technology combining microprocessors and sophisticated software + in joining mips control data follows several competitors in <unk> risc as a new design approach + digital equipment corp. tandem computers inc. nec corp. and group bull among others have similar arrangements with mips based in sunnyvale calif + control data said it expects its first <unk> mainframe machine to be introduced next year + the accord with mips calls for control data to share its expertise in data storage the companies said + control data also said it is developing what it called a <unk> computer the <unk> N intended for scientists engineers and other users of <unk> <unk> computers + <unk> stock skidded an additional $ N to $ N as british airways indicated it may <unk> at any hastily revised version of the aborted $ N billion buy-out of united air 's parent + ual has fallen $ N or N N in the three trading days since disclosure of the buy-out 's collapse jolted the stock market + meanwhile investor marvin davis said he remains interested in ual but he dropped his earlier $ 300-a-share <unk> bid + stock prices fell broadly in heavy trading dominated by futures-related program selling and further declines by ual and other airline stocks + the dow jones industrials closed off N points at N after plunging over N points in the morning + bond prices ended lower after an early rally while the dollar was mixed + the u.s. trade deficit swelled to $ N billion in august prompting worries that the nation 's export drive had stalled + exports declined for the second month in a row while imports rose to a record + an analyst called it one of the worst trade reports since the dollar <unk> out in + industrial output fell N N in september the latest sign manufacturing is slowing + an analyst cited weaker capital spending and exports + bankers trust added $ N billion to reserves for third world loans the latest big bank to take such a step + it expects a $ N billion quarterly loss + citicorp posted a N N drop in quarterly profit + manufacturers hanover had a loss due to a big reserve addition + bank of new england plans to sell some operations and lay off N N of its work force after a year of weak earnings and mounting loan problems + eastern airlines ' creditors have begun exploring alternative approaches to a chapter N reorganization because they are unhappy with the carrier 's latest proposal + tele-communications agreed to buy half of showtime networks from viacom for $ N million + the move could pose a new challenge to time warner 's home box office + the cftc plans to curb dual trading on commodities markets in which traders buy and sell both for their own account and for clients + the move is likely to anger traders + fdic chairman seidman said that lincoln savings & loan of california should have been seized in N to contain losses he estimated will cost taxpayers as much as $ N billion + a $ N billion spending bill was approved by house-senate conferees that includes major provisions affecting the federal mortgage market + hooker 's u.s. unit is expected to agree in principle this week to sell its merksamer jewelers chain to management according to executives + the deficit-reduction bill became <unk> over efforts to streamline the house version of the legislation in advance of a house-senate conference + integrated resources said talks have ended with another potential buyer of its core businesses + three big drug makers posted robust third-quarter earnings + merck 's profit climbed N N warner-lambert 's N N and eli lilly 's N N + markets + stocks volume N shares + dow jones industrials N off N transportation N off N utilities N off N + bonds shearson lehman hutton treasury index N off + commodities dow jones futures index N unchanged spot index N off N + dollar N yen up N N marks off N + paul <unk> general partner of <unk> partners a venture-capital firm based in menlo park calif. was named a director of this computer company + mr. <unk> N years old temporarily increases the board to seven members + however director thomas <unk> has said he wo n't seek re-election at the company 's annual meeting next month + <unk> associates inc. the los angeles investment partnership whose $ <unk> bid for <unk> manufacturing co. was topped recently by a competing offer from a swedish concern disclosed that it sold its entire N N <unk> stake + <unk> a <unk> ind. <unk> manufacturer had rebuffed <unk> 's proposal + it has since asked holders not to immediately tender their shares under a recent $ <unk> or $ N million bid from ab skf of sweden until <unk> directors have completed their evaluation + in a securities and exchange commission filing <unk> said it sold the N <unk> shares for $ N million in a private transaction on oct. N + <unk> did n't identify the buyer of the shares but the date of the <unk> followed by one day the swedish concern 's tender offer and the indicated price of the shares sold <unk> skf 's $ <unk> tender offer price + a <unk> spokeswoman said the company sold the stock in the open market and thus could n't identify the buyer or buyers + luis <unk> N years old has been elected to the board of this brewer + mr. <unk> former president of united press international and the <unk> <unk> network most recently <unk> <unk> <unk> partners a <unk> media acquisition firm + mr. <unk> the first hispanic person to serve as a coors director is an addition to the board increasing its membership to nine + <unk> s.a. a european media and publishing group reported a small rise in its attributable first-half group profit excluding <unk> items to N million francs $ N million from N million francs a year earlier + the <unk> group said its earlier projection that group profit for all of N would be close to the N million francs posted for N remains valid + taking into account nonrecurring gains and losses <unk> 's group net income for the first six months of this year totaled N million francs practically double the year-earlier figure of N million francs + analysts said <unk> 's earnings in the second half might be boosted by a capital gain from the sale of the paris headquarters of a <unk> company that is N N owned by <unk> + <unk> inc. <unk> md. said it received approval from the u.s. food and drug administration to market a genetic test that will assist in <unk> and treatment of <unk> and <unk> cancer + the <unk> gene <unk> test is more accurate than existing tests for <unk> the type of cancer whether it has spread or whether there is a <unk> following treatment said <unk> president stephen turner + mr. turner said the test initially will be used in <unk> with <unk> and other tests but eventually might become the benchmark for tumor analysis + mr. turner said the test will be shipped in N days to hospitals and clinical laboratories + dr. <unk> wilson a cancer treatment specialist at the national cancer institute said the test is widely used in research centers but is n't having a major impact because it is only occasionally useful in choosing the most effective treatment + but the test may prove to be more sensitive in determining whether a tumor has spread or returned following treatment dr. wilson said + we do n't know yet how useful it 's going to be he said + <unk> a <unk> developer of genetic medical tests projects that the cancer test will help it to post its <unk> profit during the first quarter of N mr. turner said + the company will charge $ N for a test and projects about $ N million in revenue from the test during the first N months of marketing he said + unilab corp. <unk> ga. said it acquired the clinical laboratories of closely held central diagnostic laboratory inc. in a cash and securities transaction valued at $ N million + unilab said its wholly owned <unk> inc. unit paid $ N million in cash provided $ N million in notes and $ N million in preferred stock to acquire central 's labs in the western u.s. + unilab which provides clinical laboratory services <unk> with central based in <unk> calif. in a number of areas + beyond removing a competitor the combination should provide <unk> said fred <unk> unilab 's chief financial officer + it also will hand unilab new markets + in los angeles for example central has had a strong market position while unilab 's presence has been less prominent according to mr. <unk> diff --git a/nerv/examples/lmptb/PTBdata/ptb.valid.txt b/nerv/examples/lmptb/PTBdata/ptb.valid.txt new file mode 100644 index 0000000..7b3d9d9 --- /dev/null +++ b/nerv/examples/lmptb/PTBdata/ptb.valid.txt @@ -0,0 +1,3370 @@ + consumers may want to move their telephones a little closer to the tv set + <unk> <unk> watching abc 's monday night football can now vote during <unk> for the greatest play in N years from among four or five <unk> <unk> + two weeks ago viewers of several nbc <unk> consumer segments started calling a N number for advice on various <unk> issues + and the new syndicated reality show hard copy records viewers ' opinions for possible airing on the next day 's show + interactive telephone technology has taken a new leap in <unk> and television programmers are racing to exploit the possibilities + eventually viewers may grow <unk> with the technology and <unk> the cost + but right now programmers are figuring that viewers who are busy dialing up a range of services may put down their <unk> control <unk> and stay <unk> + we 've been spending a lot of time in los angeles talking to tv production people says mike parks president of call interactive which supplied technology for both abc sports and nbc 's consumer minutes + with the competitiveness of the television market these days everyone is looking for a way to get viewers more excited + one of the leaders behind the expanded use of N numbers is call interactive a joint venture of giants american express co. and american telephone & telegraph co + formed in august the venture <unk> at&t 's newly expanded N service with N <unk> computers in american express 's omaha neb. service center + other long-distance carriers have also begun marketing enhanced N service and special consultants are <unk> up to exploit the new tool + blair entertainment a new york firm that advises tv stations and sells ads for them has just formed a subsidiary N blair to apply the technology to television + the use of N toll numbers has been expanding rapidly in recent years + for a while <unk> <unk> lines and services that <unk> children to dial and <unk> movie or music information earned the service a somewhat <unk> image but new legal restrictions are aimed at trimming excesses + the cost of a N call is set by the <unk> abc sports for example with the cheapest starting at N cents + billing is included in a caller 's regular phone bill + from the fee the local phone company and the long-distance carrier extract their costs to carry the call passing the rest of the money to the <unk> which must cover advertising and other costs + in recent months the technology has become more flexible and able to handle much more volume + before callers of N numbers would just listen and not talk or they 'd vote yes or no by calling one of two numbers + people in the phone business call this technology N <unk> + now callers are led through complex <unk> of choices to retrieve information they want and the hardware can process N calls in N seconds + up to now N numbers have mainly been used on local tv stations and cable channels + <unk> used one to give away the house that rock star jon <unk> <unk> grew up in + for several years turner broadcasting system 's cable news network has invited viewers to respond <unk> to <unk> issues should the u.s. military intervene in panama but even the hottest <unk> on <unk> <unk> only about N calls + the newest uses of the <unk> technology demonstrate the growing variety of applications + capital cities\/abc inc. cbs inc. and general electric co. 's national broadcasting co. unit are expected to announce soon a joint campaign to raise awareness about <unk> + the subject will be written into the <unk> of prime-time shows and viewers will be given a N number to call + callers will be sent educational booklets and the call 's modest cost will be an immediate method of raising money + other network applications have very different goals + abc sports was looking for ways to lift <unk> <unk> ratings for monday night football + kurt <unk> abc sports 's marketing director says that now tens of thousands of fans call its N number each week to vote for the best <unk> return <unk> <unk> etc + profit from the calls goes to charity but abc sports also uses the calls as a sales tool after <unk> callers for voting frank <unk> offers a football <unk> for $ N and N N of callers stay on the line to order it + jackets may be sold next + meanwhile nbc sports recently began scores plus a <unk> 24-hour N line providing a complex array of scores analysis and fan news + a spokesman said its purpose is to bolster the impression that nbc sports is always there for people + nbc 's <unk> consumer minutes have increased advertiser spending during the day the network 's weakest period + each <unk> matches a sponsor and a topic on <unk> unilever n.v. 's <unk> bros. sponsors tips on diet and exercise followed by a <unk> <unk> bros. commercial + viewers can call a N number for additional advice which will be tailored to their needs based on the numbers they <unk> press one if you 're pregnant etc + if the caller stays on the line and leaves a name and address for the sponsor coupons and a newsletter will be <unk> and the sponsor will be able to gather a list of desirable potential customers + <unk> <unk> an <unk> vice president says nbc has been able to charge premium rates for this ad time + she would n't say what the premium is but it 's believed to be about N N above regular <unk> rates + we were able to get advertisers to use their promotion budget for this because they get a chance to do <unk> says ms. <unk> + and we were able to attract some new advertisers because this is something new + mr. parks of call interactive says tv executives are considering the use of N numbers for talk shows game shows news and opinion surveys + experts are predicting a big influx of new shows in N when a service called automatic number information will become widely available + this service <unk> each caller 's phone number and it can be used to generate instant mailing lists + hard copy the new syndicated tabloid show from paramount pictures will use its N number for additional purposes that include research says executive producer mark b. von s. <unk> + for a piece on local heroes of world war ii we can ask people to leave the name and number of anyone they know who won a <unk> he says + that 'll save us time and get people involved + but mr. <unk> sees much bigger changes ahead + these are just baby steps toward real interactive video which i believe will be the biggest thing yet to affect television he says + although it would be costly to shoot multiple versions tv programmers could let audiences vote on different <unk> for a movie + fox broadcasting <unk> with this concept last year when viewers of married with children voted on whether al should say i love you to <unk> on <unk> 's day + someday viewers may also choose different <unk> of news coverage + a <unk> by phone could let you decide i 'm interested in just the beginning of story no. N and i want story no. N in <unk> mr. <unk> says + you 'll start to see shows where viewers program the program + integrated resources inc. the troubled financial-services company that has been trying to sell its core companies to restructure debt said talks with a potential buyer ended + integrated did n't identify the party or say why the talks failed + last week another potential buyer <unk> financial group which had agreed in august to purchase most of integrated 's core companies for $ N million ended talks with integrated + integrated said that it would continue to pursue other alternatives to sell the five core companies and that a group of senior executives plans to make a proposal to purchase three of the companies integrated resources equity corp. resources trust co. and integrated resources asset management corp + a price was n't disclosed + integrated also said it expects to report a second-quarter loss wider than the earlier estimate of about $ N million + the company did n't disclose the new estimate but said the change was related to integrated 's failure to sell its core businesses as well as other events which it did n't detail that occurred after its announcement last week that it was in talks with the unidentified prospective buyer + meanwhile a number of top sales producers from integrated resources equity will meet this afternoon in chicago to discuss their options + the unit is a <unk> constructed group of about N independent brokers and financial planners who sell insurance annuities limited partnerships mutual funds and other investments for integrated and other firms + the sales force is viewed as a critical asset in integrated 's attempt to sell its core companies + <unk> cited concerns about how long integrated would be able to hold together the sales force as one reason its talks with integrated failed + in composite trading on the new york stock exchange yesterday integrated closed at $ N a share down N cents + integrated has been struggling to avoid a bankruptcy-law filing since june when it failed to make interest payments on nearly $ N billion of debt + integrated senior and junior creditors are owed a total of about $ N billion + an earthquake struck northern california killing more than N people + the violent temblor which lasted about N seconds and registered N on the richter scale also caused the collapse of a <unk> section of the san <unk> bay bridge and shook candlestick park + the tremor was centered near <unk> southeast of san francisco and was felt as far as N miles away + numerous injuries were reported + some buildings collapsed gas and water lines <unk> and fires <unk> + the quake which also caused damage in san jose and berkeley knocked out electricity and telephones <unk> roadways and disrupted subway service in the bay area + major injuries were n't reported at candlestick park where the third game of baseball 's world series was canceled and fans <unk> from the stadium + bush vowed to veto a bill allowing federal financing for abortions in cases of rape and incest saying tax dollars should n't be used to compound a violent act with the taking of an <unk> life + his pledge in a letter to democratic sen. byrd came ahead of an expected senate vote on spending legislation containing the provision + east germany 's politburo met amid speculation that the ruling body would oust hard-line leader honecker whose rule has been challenged by mass emigration and calls for democratic freedoms + meanwhile about N refugees flew to <unk> west germany from warsaw the first <unk> in east germany 's <unk> exodus + the world psychiatric association voted at an <unk> <unk> to <unk> <unk> the soviet union + moscow which left the group in N to avoid <unk> over allegations that political <unk> were being certified as <unk> could be suspended if the <unk> of <unk> against <unk> is discovered during a review within a year + nasa postponed the <unk> of the space shuttle atlantis because of rain near the site of the launch <unk> in <unk> <unk> fla + the flight was <unk> for today + the spacecraft 's five <unk> are to <unk> the <unk> galileo space probe on an <unk> mission to jupiter + senate democratic leaders said they had enough votes to defeat a proposed constitutional amendment to ban flag burning + the amendment is aimed at <unk> a supreme court ruling that threw out the conviction of a texas <unk> on grounds that his freedom of speech was violated + federal researchers said lung-cancer mortality rates for people under N years of age have begun to decline particularly for white males + the national cancer institute also projected that overall u.s. mortality rates from lung cancer should begin to drop in several years if cigarette smoking continues to <unk> + bush met with south korean president roh who indicated that seoul plans to further ease trade rules to ensure that its economy becomes as open as the other industrialized nations by the mid-1990s + bush assured roh that the u.s. would stand by its security commitments as long as there is a threat from communist north korea + the bush administration is seeking an understanding with congress to ease restrictions on u.s. involvement in foreign coups that might result in the death of a country 's leader + a white house spokesman said that while bush would n't alter a longstanding ban on such involvement there 's a <unk> needed on its interpretation + india 's gandhi called for parliamentary elections next month + the balloting considered a test for the prime minister and the ruling congress i party comes amid charges of <unk> leadership and government corruption + gandhi 's family has ruled independent india for all but five years of its <unk> history + the soviet union <unk> from a u.n. general assembly vote to reject israel 's credentials + it was the first time in seven years that moscow has n't joined efforts led by <unk> nations to <unk> israel from the world body and was viewed as a sign of improving <unk> ties + israel was <unk> by a vote of N with N <unk> + black activist walter sisulu said the african national congress would n't reject violence as a way to pressure the south african government into concessions that might lead to negotiations over apartheid + the <unk> sisulu was among eight black political activists freed sunday from prison + london has concluded that <unk> president <unk> was n't responsible for the execution of six british <unk> in world war ii although he probably was aware of the <unk> + the report by the defense ministry also rejected allegations that britain covered up evidence of <unk> 's activities as a german army officer + an international group approved a formal ban on ivory trade despite objections from southern african governments which threatened to find alternative channels for selling elephant <unk> + the move by the convention on trade in endangered <unk> meeting in switzerland places the elephant on the <unk> list + an <unk> in colombia killed a federal judge on a <unk> street + an <unk> caller to a local radio station said cocaine traffickers had <unk> the <unk> in <unk> for the <unk> of <unk> wanted on drug charges in the u.s. + <unk> leader <unk> met with egypt 's president <unk> and the two officials pledged to respect each other 's laws security and stability + they stopped short of <unk> diplomatic ties <unk> in N + the reconciliation talks in the <unk> desert town of <unk> followed a meeting monday in the egyptian resort of <unk> <unk> + <unk> group inc. revised its exchange offer for $ N million face amount of N N senior subordinated debt due N and extended the offer to oct. N from oct. N + the <unk> n.j. company said holders would receive for each $ N face amount $ N face amount of a new issue of secured senior subordinated notes convertible into common stock at an initial rate of $ N a share and N common shares + the new notes will bear interest at N N through july N N and thereafter at N N + under the original proposal the maker of specialty coatings and a developer of <unk> technologies offered $ N of notes due N N common shares and $ N in cash for each $ N face amount + completion of the exchange offer is subject to the tender of at least N N of the debt among other things + <unk> which said it does n't plan to further extend the offer said it received $ N face amount of debt under the original offer + the stock of ual corp. continued to be <unk> amid signs that british airways may <unk> at any <unk> <unk> of the aborted $ N billion buy-out of united airlines ' parent + ual stock plummeted a further $ N to $ N on volume of more than N million shares in new york stock exchange composite trading + the plunge followed a drop of $ N monday amid indications the takeover may take weeks to be revived + the stock has fallen $ N or N N in the three trading days since announcement of the collapse of the $ 300-a-share takeover jolted the entire stock market into its <unk> plunge ever + this is a total <unk> for takeover-stock traders one investment banker said + los angeles financier marvin davis who put united in play with a $ N billion bid two months ago last night <unk> both a ray of hope and an extra element of uncertainty by saying he remains interested in acquiring ual + but he dropped his earlier $ 300-a-share <unk> bid saying he must first explore bank financing + even as citicorp and chase manhattan corp. scrambled to line up bank financing for a revised version of the <unk> labor-management bid british airways a N N partner in the buying group indicated it wants to start from <unk> + its partners are united 's pilots who were to own N N and ual management at N N + adding <unk> to injury united 's <unk> machinists ' union which helped scuttle financing for the first bid yesterday asked ual chairman stephen wolf and other ual directors to resign + a similar demand was made by a group that represents some of united 's N <unk> employees + john <unk> machinists union general vice president attacked mr. wolf as greedy and irresponsible for pursuing the buy-out + although mr. wolf and john pope ual 's chief financial officer stood to <unk> $ N million for stock and options in the buy-out ual executives planned to reinvest only $ N million in the new company + the blue-collar machinists longtime rivals of the white-collar pilots say the <unk> would load the company with debt and weaken its finances + confusion about the two banks ' <unk> efforts to round up financing for a new bid that the ual board has n't even seen yet helped send ual stock <unk> downward + and rumors of forced selling by takeover-stock traders triggered a <unk> <unk> in the dow jones industrial average around N a.m. edt yesterday + yesterday 's selling began after a japanese news agency reported that japanese banks which balked at the first bid were ready to reject a revised version at around $ N a share or $ N billion + several reports as the day <unk> gave vague or <unk> indications about whether banks would sign up + citicorp for example said only that it had <unk> of interest of a transaction from both the borrowers and the banks but did n't have an agreement + late in the day mr. wolf issued a <unk> statement calling mr. <unk> 's blast divisive and <unk> for + but he gave few details on the progress toward a new bid saying only we are working toward a revised proposal for majority employee ownership + meanwhile in another sign that a new bid is n't imminent it was learned that the ual board held a telephone meeting monday to hear an update on the situation but that a formal board meeting is n't likely to be <unk> until early next week + in london british airways chairman lord king was quoted in the times as declaring he is not prepared to take my shareholders into a <unk> deal + observers said it appeared that british air was angered at the way the bid has <unk> into confusion as well as by the banks ' effort to round up financing for what one called a deal that is n't a deal + the effort to revive the bid was complicated by the <unk> nature of the <unk> buying group + the pilots were meeting outside chicago yesterday + but british air which was to have supplied $ N million out of $ N million in equity financing apparently was n't involved in the second proposal and could well reject it even if banks obtain financing + a group of united 's <unk> employees said in a statement the fact that wolf and other officers were going to line their pockets with literally millions of dollars while <unk> severe pay cuts on the <unk> employees of united is not only <unk> but <unk> + the machinists also asked for an investigation by the securities and exchange commission into possible <unk> violations in the original bid for ual by mr. davis as well as in the response by ual + last week just before the bank commitments were due the union asked the u.s. labor department to study whether the bid violated legal standards of fairness governing employee investment funds + in his statement mr. wolf said we continue to believe our approach is sound and that it is far better for all employees than the alternative of having an outsider own the company with employees paying for it just the same + mr. wolf has <unk> merger advice from a major wall street securities firm relying instead only on a takeover lawyer peter <unk> of <unk> <unk> slate <unk> & flom + the huge drop in ual stock prompted one takeover stock trader george <unk> managing partner of <unk> <unk> & co. to deny publicly rumors that his firm was going out of business + mr. <unk> said that despite losses on ual stock his firm 's health is excellent + the stock 's decline also has left the ual board in a <unk> + although it may not be legally obligated to sell the company if the buy-out group ca n't revive its bid it may have to explore alternatives if the buyers come back with a bid much lower than the group 's original $ 300-a-share proposal + at a meeting sept. N to consider the labor-management bid the board also was informed by its investment adviser first boston corp. of interest expressed by buy-out funds including kohlberg kravis roberts & co. and <unk> little & co. as well as by robert bass morgan stanley 's buy-out fund and pan am corp + the takeover-stock traders were hoping that mr. davis or one of the other interested parties might <unk> with the situation in disarray or that the board might consider a recapitalization + meanwhile japanese bankers said they were still <unk> about accepting citicorp 's latest proposal + macmillan inc. said it plans a public offering of N million shares of its berlitz international inc. unit at $ N to $ N a share + the offering for the language school unit was announced by robert maxwell chairman and chief executive officer of london-based maxwell communication corp. which owns macmillan + after the offering is completed macmillan will own about N N of the berlitz common stock outstanding + five million shares will be offered in the u.s. and N million additional shares will be offered in <unk> international offerings outside the u.s. + goldman sachs & co. will manage the offering + macmillan said berlitz intends to pay quarterly dividends on the stock + the company said it expects to pay the first dividend of N cents a share in the N first quarter + berlitz will borrow an amount equal to its expected net proceeds from the offerings plus $ N million in connection with a credit agreement with lenders + the total borrowing will be about $ N million the company said + proceeds from the borrowings under the credit agreement will be used to pay an $ N million cash dividend to macmillan and to lend the remainder of about $ N million to maxwell communications in connection with a <unk> note + proceeds from the offering will be used to repay borrowings under the short-term parts of a credit agreement + berlitz which is based in princeton n.j. provides language instruction and translation services through more than N language centers in N countries + in the past five years more than N N of its sales have been outside the u.s. + macmillan has owned berlitz since N + in the first six months of this year berlitz posted net income of $ N million on sales of $ N million compared with net income of $ N million on sales of $ N million + right away you notice the following things about a philip glass concert + it attracts people with funny hair or with no hair in front of me a girl with <unk> <unk> sat <unk> a boy who had <unk> his + whoever constitute the local left bank come out in force dressed in black along with a <unk> of <unk> who want to be on the cutting edge + people in glass houses tend to look <unk> + and if still <unk> at the evening 's end you notice something else the audience at first <unk> and <unk> by the music releases its <unk> feelings in collective <unk> + currently in the middle of a <unk> <unk> tour as a solo <unk> mr. glass has left behind his <unk> equipment and <unk> in favor of going it alone + he sits down at the piano and plays + and plays + either one likes it or one does n't + the typical glass audience which is more likely to be composed of music students than their teachers certainly does + the work though sounds like <unk> for <unk> + philip glass is the <unk> and his music the new clothes of the <unk> + his success is easy to understand + <unk> introducing and explaining his pieces mr. glass looks and sounds more like a <unk> <unk> describing his work than a classical <unk> playing a recital + the piano <unk> which have been labeled <unk> as <unk> <unk> <unk> cyclical <unk> and <unk> are <unk> <unk> therefore <unk> <unk> <unk> therefore <unk> and <unk> <unk> but <unk> therefore both pretty and <unk> + it is music for people who want to hear something different but do n't want to work especially hard at the task + it is <unk> listening for the now generation + mr. glass has <unk> the famous <unk> <unk> less is more + his more is always less + far from being <unk> the music <unk> <unk> us with apparent <unk> not so <unk> <unk> in the <unk> of N time <unk> <unk> and <unk> or <unk> <unk> <unk> + but the music has its <unk> and mr. glass has constructed his solo program around a move from the simple to the relatively complex + opening N from <unk> <unk> the audience to the glass technique never <unk> too far from the piano 's center mr. glass works in the two <unk> on either side of middle c and his fingers seldom leave the <unk> + there is a <unk> musical style here but not a particular performance style + the music is not especially <unk> indeed it 's hard to imagine a bad performance of it + nothing <unk> no <unk> no <unk> <unk> problems challenge the performer + we hear we may think inner voices but they all seem to be saying the same thing + with planet news music meant to <unk> <unk> of allen <unk> 's wichita <unk> <unk> mr. glass gets going + his hands sit <unk> apart on the <unk> + seventh <unk> make you feel as though he may break into a very slow <unk> <unk> + the <unk> <unk> but there is little <unk> even though his fingers begin to <unk> over more of the <unk> + contrasts predictably <unk> first the music is loud then it becomes soft then you realize it becomes <unk> again + the fourth <unk> play an <unk> from <unk> on the beach is like a <unk> but it does n't seem to move much beyond its <unk> ground in three blind mice + when mr. glass decides to get really fancy he <unk> his hands and hits a <unk> bass note with his right hand + he does this in at least three of his solo pieces + you might call it a <unk> or a <unk> <unk> + in mad rush which came from a commission to write a piece of <unk> length mr. glass <unk> and <unk> confessed that this was no problem for me an a <unk> with a b section several times before the piece ends <unk> + not only is the typical <unk> <unk> it is also often multiple in its context s + mad rush began its life as the <unk> to the <unk> lama 's first public address in the u.s. when mr. glass played it on the <unk> at new york 's <unk> of st. john the <unk> + later it was performed on radio <unk> in germany and then <unk> <unk> took it for one of her dance pieces + the point is that any piece can be used as background music for virtually anything + the evening ended with mr. glass 's <unk> another multiple work + parts N N and N come from the <unk> of <unk> morris 's <unk> film the thin blue line and the two other parts from <unk> music to two separate <unk> of the <unk> story of the same name + when used as background in this way the music has an appropriate <unk> as when a <unk> phrase a <unk> minor third <unk> the seemingly endless <unk> of reports interviews and <unk> of witnesses in the morris film + served up as a solo however the music lacks the <unk> provided by a context within another medium + <unk> of mr. glass may agree with the critic richard <unk> 's sense that the N music in twelve parts is as <unk> and <unk> as the <unk> <unk> + but while making the obvious point that both <unk> develop variations from themes this comparison <unk> the intensely <unk> nature of mr. glass 's music + its supposedly <unk> <unk> <unk> a <unk> that makes one <unk> for the <unk> of <unk> <unk> the <unk> radical <unk> of <unk> and <unk> and what in <unk> even seems like <unk> in <unk> + mr. <unk> is professor of english at southern <unk> university and editor of the southwest review + honeywell inc. said it hopes to complete shortly the first of two sales of shares in its japanese joint venture <unk> for about $ N million + the company would n't disclose the buyer of the initial N N stake + proceeds of the sale expected to be completed next week would be used to repurchase as many as N million shares of honeywell stock the company said + honeywell said it is negotiating the sale of a second stake in <unk> but indicated it intends to hold at least N N of the joint venture 's stock long term + a N N stake would allow honeywell to include <unk> earnings in its results + honeywell previously said it intended to reduce its holding in the japanese concern as part of a restructuring plan which also calls for a reduction of <unk> on weapons sales + yesterday a spokeswoman said the company was pleased with our progress in that regard and hopes to provide additional details soon + honeywell said its defense and marine systems group incurred delays in shipping some undisclosed contracts during the third quarter resulting in lower operating profit for that business + overall honeywell reported earnings of $ N million or $ N a share for the three months ended oct. N compared with a loss of $ N million or N cents a share a year earlier + the previous period 's results included a $ N million pretax charge related to <unk> contract costs and a $ N million pretax gain on real estate sales + sales for the latest quarter were flat at $ N billion + for the nine months honeywell reported earnings of $ N million or $ N a share compared with earnings of $ N million or $ N a share a year earlier + sales declined slightly to $ N billion + once again your editorial page <unk> the law to conform to your almost <unk> <unk> + in an <unk> of little <unk> to his central point about private enforcement suits by environmental groups michael s. <unk> <unk> your readers the clean water act is written upon the <unk> the <unk> rather that nothing but zero risk will do it <unk> a legal standard of zero <unk> <unk> environmental <unk> sept. N + this statement surely <unk> your editorial viewpoint that environmental protection is generally silly or excessive but it is simply wrong + the clean water act contains no legal standard of zero <unk> + it requires that <unk> of <unk> into the waters of the united states be authorized by permits that reflect the <unk> limitations developed under section N + whatever may be the problems with this system it <unk> reflects zero risk or zero <unk> + perhaps mr. <unk> was confused by congress 's <unk> statement of the national goal in section N which indeed calls for the elimination of <unk> by N no less + this <unk> statement was not taken seriously when enacted in N and should not now be confused with the <unk> provisions of the statute + thus you do the public a great <unk> when mr. <unk> suggests even <unk> that the clean water act prohibits the preparation of a <unk> and water your <unk> readers may be led to believe that nothing but chance or oversight protects them as they <unk> in the night with their <unk> and waters from the <unk> knock of the sierra club at their doors + robert j. <unk> + national geographic the <unk> u.s. magazine is attracting more readers than ever and offers the glossy <unk> pages that upscale advertisers love + so why did advertising pages plunge by almost N N and ad revenue by N N in the first half + to hear advertisers tell it the magazine just has n't kept up with the times + despite renewed interest by the public in such topics as the environment and the third world it has n't been able to shake its reputation as a magazine boys like to <unk> through in search of <unk> tribe women + worse it lagged behind competitors in offering <unk> <unk> from regional editions to discounts for frequent advertisers + but now the magazine is attempting to fight back with an ambitious plan including a revamped sales strategy and a surprisingly aggressive ad campaign + advertisers do n't think of the magazine first says joan <unk> who joined in april as national advertising director + what we want to do is take a more aggressive stance + people did n't believe we were in tune with the marketplace and in many ways we were n't + the <unk> magazine has never had to woo advertisers with quite so much <unk> before + it largely <unk> on its <unk> <unk> N million subscribers in the first half up from N million a year ago an average age of N for readers at the <unk> of their <unk> years loyalty to the tune of an N N average subscription renewal rate + the magazine had its best year yet in N when it <unk> its centennial and racked up a N N gain in ad pages to N + but this year when the <unk> surrounding its centennial died so too did some advertiser interest + the reason ad executives say is that the entire magazine business has been soft and national geographic has some <unk> that make it especially <unk> during a soft market + perhaps the biggest of those factors is its high ad prices $ N for a <unk> page vs. $ N for the <unk> a comparable publication with a far smaller circulation + when ad dollars are tight the high page cost is a major <unk> for advertisers who generally want to appear regularly in a publication or not at all + even though national geographic offers far more readers than does a magazine like <unk> the page costs you an arm and a leg to develop any frequency says harry glass new york media manager for bozell inc + to combat that problem national geographic like other magazines began offering regional editions allowing advertisers to appear in only a portion of its magazines for example ads can run only in the magazines sent to subscribers in the largest N markets + but the magazine was slower than its competitors to come up with its regional editions and until last year offered fewer of them than did competitors + time magazine for example has more than N separate editions going to different regions top management and other groups + another sticking point for advertisers was national geographic 's tradition of <unk> its ads together usually at the beginning or end of the magazine rather than spreading ads out among its articles as most magazines do + and national geographic 's <unk> size means extra production costs for advertisers + but ms. <unk> says the magazine is fighting back + it now offers N regional editions it very recently began running ads adjacent to articles and it has been <unk> up its sales force + and it just launched a promotional campaign to tell chief executives marketing directors and media executives just that + the centerpiece of the promotion is its new ad campaign into which the magazine will pour about $ N mostly in the next few weeks + the campaign created by <unk> group 's ddb needham agency takes advantage of the <unk> photography that national geographic is known for + in one ad a photo of the interior of the <unk> in paris is <unk> with the headline the only book more respected than <unk> does n't accept advertising + another ad pictures a tree <unk> magnified N times with the headline for impact far beyond your size consider our regional editions + ms. <unk> says she wants the campaign to help attract advertisers in N categories including corporate financial services consumer electronics insurance and food + her goal to top N ad pages in N up from about N this year + whether she can meet that ambitious goal is still far from certain + the ad campaign is meant to <unk> the thought of national geographic she says + we want it to be a <unk> kind of image + wcrs plans <unk> sale + wcrs group hopes to announce perhaps today an agreement to sell the majority of its ad unit to <unk> eurocom a european ad executive said + wcrs has been in discussions with eurocom for several months + however when negotiations <unk> down recently wcrs 's chief executive peter scott met in paris with another french firm <unk> <unk> <unk> <unk> or <unk> + according to the executive <unk> 's involvement prompted renewed <unk> in the <unk> talks and the two agencies were hoping to <unk> out details by today + executives of the two agencies could n't be reached last night + ad notes + new account procter & gamble co. cincinnati awarded the ad accounts for its line of professional <unk> <unk> <unk> and oil products to <unk> <unk> <unk> cincinnati + billings were n't disclosed + professional <unk> products are specially made for the <unk> industry + who 's news stephen <unk> N was named executive vice president deputy creative director at grey advertising new york + he was executive vice president director of broadcast production + the commodity futures trading commission plans to restrict dual trading on commodity exchanges a move almost certain to <unk> exchange officials and traders + the cftc said it will propose the restrictions after the release of a study that shows little economic benefit resulting from dual trading and cites problems associated with the practice + dual trading gives an exchange trader the right to trade both for his own account and for customers + the issue exploded this year after a federal bureau of investigation operation led to charges of widespread trading abuses at the chicago board of trade and chicago mercantile exchange + while not specifically mentioned in the fbi charges dual trading became a focus of attempts to tighten industry regulations + critics contend that traders were putting buying or selling for their own accounts ahead of other traders ' customer orders + traders are likely to oppose such restrictions because dual trading provides a way to make money in slower markets where there is a shortage of customer orders + the exchanges contend that dual trading improves liquidity in the markets because traders can buy or sell even when they do n't have a customer order in hand + the exchanges say liquidity becomes a severe problem for <unk> traded contracts such as those with a long time remaining before expiration + the cftc may take those arguments into account by allowing exceptions to its restrictions + the agency did n't cite specific situations where dual trading might be allowed but smaller exchanges or contracts that need additional liquidity are expected to be among them + wendy <unk> the agency 's chairman told the senate agriculture committee that she expects the study to be released within two weeks and the rule changes to be completed by <unk> + the study by the cftc 's division of economic analysis shows that a trade is a trade a member of the study team said + whether a trade is done on a dual or <unk> basis the member said does n't seem to have much economic impact + currently most traders on commodity exchanges specialize in trading either for customer accounts which makes them brokers or for their own accounts as <unk> <unk> + the tests indicate that dual and <unk> traders are similar in terms of the trade executions and liquidity they provide to the market mrs. <unk> told the senate panel + members of congress have proposed restricting dual trading in bills to <unk> cftc operations + the house 's bill would prohibit dual trading in markets with daily average volume of N contracts or more <unk> those considered too difficult to track without a sophisticated computer system + the senate bill would force the cftc to suspend dual trading if an exchange ca n't show that its oversight system can detect <unk> abuses + so far one test of restricting dual trading has worked well + the chicago merc banned dual trading in its standard & poor 's 500-stock index futures pit in N + under the rules traders decide before a session begins whether they will trade for their own account or for customers + traders who stand on the pit 's top step where most customer orders are executed ca n't trade for themselves + a merc spokesman said the plan has n't made much difference in liquidity in the pit + it 's too soon to tell but people do n't seem to be unhappy with it he said + he said he would n't comment on the cftc plan until the exchange has seen the full proposal + but at a meeting last week tom <unk> the board of trade 's president told commodity lawyers dual trading is definitely worth saving + it adds something to the market + japanese firms push <unk> car <unk> + japanese luxury-car makers are trying to set strict design standards for their dealerships + but some dealers are negotiating <unk> terms while others decline to deal at all + nissan motor co. 's infiniti division likes to insist that every dealer construct and <unk> a building in a japanese style + specifications include a <unk> <unk> <unk> at the center of each showroom and a <unk> bridge <unk> a stream that flows into the building from outside + infiniti has it down to the <unk> says jay <unk> a partner at <unk> power & associates an auto research firm + toyota motor corp. 's lexus division also provides specifications + but only two-thirds of lexus dealers are <unk> new buildings according to the lexus <unk> + some are even coming up with their own novel designs + in louisville ky. for example david peterson has built a lexus dealership with the showroom on the second floor + yet some dealers have turned down infiniti or lexus <unk> because they were unwilling or unable to meet the design requirements + lee seidman of cleveland says infiniti was a bear on <unk> but at least let him <unk> an existing building without the stream + mr. seidman says he turned down a lexus franchise in part because the building was <unk> but very expensive + to head off arguments infiniti offers dealers cash bonuses and <unk> construction loans + <unk> device 's <unk> plays back a lesson + products <unk> have to be first to be winners + that 's the lesson offered through one case study featured in a design exhibit + dictaphone corp. was caught off guard in N when its main competitor <unk> office products of japan introduced a <unk> <unk> recorder half the size of standard <unk> devices + blocked by patent protection from following suit dictaphone decided to go a step further and cut the <unk> in half again down to the length of a <unk> + by N designers and engineers at dictaphone a pitney bowes subsidiary had produced a working model of a <unk> recorder + by N however the patent status of the <unk> <unk> had changed permitting dictaphone to develop its own competitive micro system which it did + marketing and sales departments then urged <unk> of the <unk> project + but others said <unk> should proceed + both were right + dictaphone went ahead and introduced the <unk> in N but it has n't sold well + to date says <unk> <unk> a dictaphone vice president it has broken even or shown a small loss + nevertheless the device has been successful in other ways + it helped dictaphone attract better engineers and it provided new technology for other company products + the <unk> recorder also helped transform the company 's reputation from <unk> to <unk> <unk> + it gave me great pride to see the inventor of the <unk> in japan look at the <unk> and shake his head and say <unk> says mr. <unk> + dictaphone 's <unk> recorder is one of N case studies in the <unk> design project sponsored by the design management institute of boston and harvard business school + the studies are on exhibit at harvard this month and will travel to chicago 's institute of design and the university of california at berkeley + a rake 's progress means <unk> out + one day carl barrett of mobile ala. was <unk> some <unk> leaves but the rake kept riding up over the <unk> + the harder he tried to push them into large <unk> the closer he came to breaking the rake and <unk> his back + so mr. barrett then vice president of the alabama <unk> association took a <unk> garden rake and taped it to the <unk> of a <unk> rake about nine inches up + his crude device worked the lower teeth gathered the leaves into a pile while the higher harder teeth moved the top of the pile + now incorporated into a <unk> rake the <unk> <unk> or <unk> also are supposed to aid in picking up leaves + one customer donald <unk> of mobile says the barrett rake allowed him to do his lawn in N N hours two hours less than usual + but other rake makers have their doubts + richard mason president of <unk> co. in <unk> w. va. says the barrett rake makes sense but it would be tough to explain to consumers + john <unk> marketing director for true <unk> corp. a subsidiary of black & decker says people do n't want to move a <unk> pile + they either pick it up he says or they start pulling from a fresh direction + odds and ends + no more <unk> <unk> or <unk> <unk> promises <unk> corp. of <unk> ind. the designer of a bed support to replace traditional <unk> + four <unk> steel <unk> each roughly in the shape of a <unk> are attached to the bottom of the box spring in a <unk> position + nearly half of u.s. consumers say they 'll pay up to N N more for packaging that can be recycled or is <unk> according to a survey commissioned by the michael peters group a design consultant + the pentagon is a <unk> house + living there for six years was really scary + the ghosts of the past are everywhere they are kept at bay only by feeding them vast quantities of our defense budget + some can be bought off relatively <unk> + during the korean war gen. douglas <unk> demanded and got in addition to his u.n. command in korea his own naval command in japan <unk> + those <unk> operations cost less than $ N billion a year and keep mac 's ghost quiet + that 's about all it costs to <unk> adm. erich <unk> 's ghost + in N <unk> and the german navy threatened to attack the panama <unk> so we created the southern command in panama + the southern command has grown even bigger since the war because <unk> 's ghost sometimes runs through the e ring dressed like gen. noriega + the command 's huge bureaucracy is needed to analyze whether leaders of coups against gen. noriega meet the war powers act 's six points cap <unk> 's seven points the intelligence committee 's N points and <unk> wilson 's N points necessary to justify u.s. support + so far no one has + the ghost of the soviet <unk> discovered in cuba back in the <unk> costs just a few hundred million the price of the caribbean command in key west that president carter created in N + the <unk> has n't been heard from since but we keep the staff around just in case + george marshall 's ghost is much more difficult to keep happy + we keep a lot of <unk> to him around the pentagon <unk> <unk> <unk> and such + the army headquarters on the third deck of the pentagon used to <unk> a lot of <unk> to him but the navy headquarters on the fourth deck made them stop it + you see marshall had this thing about the navy and the <unk> he wanted to make them part of the army but secretary of the navy james <unk> blocked him + now his ghost wo n't let up till it 's done + to keep him quiet we <unk> a new unified command every year or so run by the army or the air force and put more of the navy and <unk> under it + but we still hear him <unk> at night because the navy has a few ships left and to satisfy him the navy 's sea lift forces were given to a new air force bureaucracy in illinois its space operations to another command in colorado the <unk> to a new army bureaucracy in fort <unk> and the navy 's indian ocean and persian gulf forces to an army bureaucracy in florida + which brings up the worst and <unk> ghost of all the ghost of the shah of iran + when the shah died president carter was so scared that the shah 's ghost would blame him for <unk> him out to make way for the <unk> that he declared the carter doctrine + mr. carter said he would go to war to stop anyone from trying to grab iran + but that ghost would n't settle for words he wanted money and people lots + so mr. carter formed three new army divisions and gave them to a new bureaucracy in tampa called the rapid <unk> force + but that ghost was n't <unk> he knew the <unk> was neither rapid nor <unk> nor a force even though it cost $ N billion or $ N billion a year + after mr. carter was defeated in N the shah 's ghost claimed the credit and then went after president reagan and cap <unk> + i saw what he did to them <unk> + it made my <unk> dance with <unk> + why he used to lay in wait for cap suddenly he 'd leap from behind some <unk> of marshall onto cap 's <unk> and grab him by the <unk> and <unk> him till he <unk> up an additional $ N billion or so + cap added four more divisions to the army two active and two reserve two carrier groups to the navy a division equivalent to the <unk> and the <unk> <unk> <unk> and a thousand tactical aircraft to the air force + he bought $ N billion in <unk> ships and $ N billion in <unk> and equipment to fill them and <unk> them at a new $ N billion base at diego garcia in the middle of the indian ocean + he dedicated all these new forces to the persian gulf + one night both marshall 's ghost and the shah 's ghost together caught cap and threw him to the ground + before they let him go he added a thousand bureaucrats to the <unk> in tampa and renamed it central command + he gave those bureaucrats charge of all naval operations in the persian gulf and indian ocean + marshall figured it would be good training for those soldiers someday maybe they would get the whole navy + they had fun moving the carriers around but it turned out that they had forgotten all about mine <unk> + but the shah still kept leaping out at cap so cap bought a hundred merchant ships more and $ N billion of <unk> <unk> <unk> etc. in order that those seven new army divisions and three marine <unk> could unload from all those new ships and aircraft and go to war in the <unk> <unk> + then suddenly <unk> 's ghost came to visit and said what the hell are you doing planning for a land war in asia N miles away + we 'd get our <unk> kicked + lucky for cap <unk> was <unk> and soon went away while the shah he kept coming back + so the u.s. found itself paying about $ N billion in <unk> to various arab <unk> for <unk> rights around the indian ocean + we had great success in somalia + but then it turned out that president <unk> <unk> was not at all a nice person and the navy pointed out that the base he promised us in <unk> had <unk> up about a hundred years ago and anyway was N miles from the mouth of the gulf + but who 's counting + still <unk> was the best we could get so we stay in bed with president <unk> + all these reports about him committing <unk> are probably <unk> anyway + but would n't you know now that we are spending <unk> of dollars and have built those new divisions and new air wings and have positioned all these ships and supplies to fight the russians in iran the russians seem to have lost interest in the whole subject + meanwhile congress is cutting huge chunks out of the rest of the defense budget + predictably some navy guys said do we still need to keep all N army divisions on active duty and all those extra <unk> aircraft without bases and all those army guys playing <unk> in tampa + could n't we save $ N billion or $ N billion a year by shifting that stuff to the reserves + and why not save the costs of a thousand bureaucrats by <unk> central command and putting responsibility for gulf naval operations back where it belongs afloat with the task force <unk> in the gulf + and where were all our <unk> paid indian ocean allies last year when our <unk> were being attacked + questions like that really stir up marshall 's ghost + he appeared late one night in the <unk> of the new defense secretary dick cheney + marshall came <unk> in like <unk> 's ghost dragging those chains of <unk> and air wings and links with arab <unk> + he would n't leave until mr. cheney promised to do whatever the pentagon systems analysts told him + so next day mr. cheney went out and did just that he canceled the <unk> navy and cut back one carrier and N <unk> + then he canceled production of the navy 's most important carrier aircraft the f-14 and the <unk> + on the other hand mr. cheney retained all those new land forces + marshall 's ghost is satisfied for now but he 'll be back + what with halloween coming and bigger defense cuts looming more and more pentagon bureaucrats are <unk> under their desks + they know that they can hold off the ghosts only a little while longer by cutting carriers and ships + then the whole thing will start to collapse just as it did in the 1970s and the ghosts and <unk> will be <unk> through the place turning people 's hair white + gives me the <unk> just thinking about it + mr. lehman a reagan navy secretary is a managing director of painewebber + the metal and marble lobby of centrust bank 's headquarters is <unk> than your average savings and loan + for one thing there is an old master on the wall samuel <unk> david a big <unk> <unk> painted by <unk> <unk> a <unk> <unk> + at the moment however the painting is a nagging reminder of the problems that have <unk> centrust and its flamboyant chairman and chief executive david l. paul + in an international buying spree that began barely two years ago mr. paul <unk> a collection of about N <unk> works including the <unk> at a total cost of $ N million + by midnight oct. N all of the paintings were supposed to have been sold off under orders from florida 's comptroller whose office <unk> the state 's s&ls + centrust did n't meet the deadline + the collection was at the heart of a <unk> plan mr. paul had in which the art was to do double duty as an investment for centrust and as <unk> for the s&l 's new office tower designed by <unk> <unk> + the <unk> is that the $ N million was <unk> from the funds of this federally insured institution even as centrust was losing money hand over <unk> + mr. paul had no right to buy art for the s&l in the first place it is n't on the comptroller 's permissible list without seeking a special <unk> which he did not do + besides that some of the paintings that were to grace the walls of centrust actually ended up hanging in the chairman 's estate on la <unk> <unk> off miami beach + last spring the comptroller 's office called a halt to mr. paul 's <unk> giving him six months to sell the paintings + the acquisitions officials said in a letter to mr. paul were <unk> <unk> and unauthorized + so far mr. paul has <unk> but three of his <unk> he wo n't say to whom + the comptroller 's office says it is monitoring the situation + though the agency could remove mr. paul it has no current intention to do that + it 's not like selling <unk> mr. paul says as he takes a drag on a <unk> st. <unk> cigarette + the last six months has established the quality of the collection + there 's no fire sale here + despite mr. paul 's characteristic <unk> the <unk> <unk> <unk> is finding that getting centrust florida 's largest thrift institution out of its <unk> investments is much tougher than getting into them had been + paintings are just part of the picture + although mr. paul has <unk> a $ N billion junk-bond portfolio to less than $ N million since april the high-yield debt market has plummeted + <unk> itself of what is left as is required of all thrift institutions by july N under the new federal s&l bailout law may well prove difficult + and centrust has other problems + late last week federal regulators ordered the thrift institution to stop paying dividends on its preferred stock a move that suggests deep concern about an institution + mr. paul has a plan to bring in $ N million by selling off N of centrust 's N branches but it has yet to be approved by regulators + it is mr. paul 's art venture however that has drawn the most attention from investors and regulators not to mention <unk> throughout the world + <unk> shareholders some of whom are suing say the chairman and his collection <unk> the excesses of speculation that set off the national s&l crisis + centrust shares have fallen sharply in price from a high of $ N in N to close yesterday at $ N + gallery directors meanwhile say mr. paul and others of his <unk> have left an <unk> mark on the art world and not for the better + collectors do n't say it 's a van <unk> anymore <unk> harry brooks the president of <unk> & co. a new york gallery + they say <unk> <unk> got $ N million for his so certainly $ N million is n't too much for mine + the great collectors we depended on such as paul mellon or norton simon have stopped buying and the new buyers are brilliant men who made money in the stock market or in takeovers and rushed into collecting + mr. <unk> an art dealer and <unk> sold vincent van <unk> 's <unk> at a sotheby 's auction in november N to australian businessman alan bond + trouble is mr. bond has yet to pay up and until he does sotheby 's has the painting under lock and key + when mr. paul moved in on the art market he let it be known that virtually no piece was too costly to be considered by centrust + he established his reputation as a <unk> in january last year at sotheby 's auction of the linda and gerald guterman collection in new york + there on one of his first shopping trips mr. paul picked up several paintings at stunning prices + he paid $ N million for instance for a still life by jan <unk> <unk> <unk> that was expected to fetch perhaps $ N + the price paid was a record for the artist + some N N of items offered at the guterman auction were sold at an average price of $ N + the rest were withdrawn for lack of acceptable bids + afterward mr. paul is said by mr. guterman to have <unk> mr. guterman the new york developer selling the collection and <unk> + he says he <unk> them recalls mr. guterman + and he tells me if you want to see your paintings you 'll have to come to my house in florida + mr. paul denies <unk> and <unk> + it 's just not true he says + mr. paul quickly became more aggressive in his collecting with the help of george wachter a sotheby 's expert in old masters whom he met at an exhibition of the guterman items + mr. wachter who became his principal adviser searched <unk> in london paris and <unk> + and according to one dealer mr. wachter had a <unk> for introducing mr. paul with the phrase he can buy anything + nicholas hall the president of the <unk> u.s.a. ltd. gallery in new york sold mr. paul <unk> and <unk> in the <unk> by giovanni <unk> <unk> + mr. hall says mr. paul was known to spend a lot of money + people were interested in seeing him but it was recognized that the route was through sotheby 's and particularly george wachter + mr. paul thus developed a close <unk> relationship with sotheby 's + mr. paul was eager to <unk> a collection for the headquarters centrust has been moving into for the greater part of a year + sotheby 's the auction house founded in london N and now under the <unk> of sotheby 's holdings inc. was hoping to stir up interest in old masters as it <unk> to build its u.s. business + european dealers continued to dominate the action in old masters which sotheby 's north america had lately been touting in this country + for several months there was optimism all around + last october mr. paul paid out $ N million of centrust 's cash plus a $ N million commission for portrait of a man as <unk> + the painting attributed to <unk> artist peter paul rubens was purchased privately through sotheby 's not at auction + in march N just N months into his campaign mr. paul was named by art & <unk> magazine as one of the top N individual collectors in the u.s. + an unknown quantity to most of the art world paul is no <unk> to <unk> spending the magazine said noting that he does n't stop at <unk> on <unk> but also spends big on art you can eat + he recently bid $ N at a paris charity auction for a dinner <unk> by six of the world 's great chefs but the final party cost closer to $ N + mr. paul says it was n't that high + the art collection might have come to rival the <unk> ' had the florida comptroller 's office not got wind of mr. paul 's <unk> <unk> + in its letter to him dated march N and shared with reporters alex <unk> the chief of the <unk> bureau in the comptroller 's office expressed <unk> that the s&l could be so <unk> when it had reported losses of more than $ N million in its two preceding quarters + the state gave centrust N days to sell the rubens + the comptroller 's office eventually extended the deadline to six months but <unk> its demands ordering that the book value of the collection be reduced to zero + in other words get rid of all the pictures + the state <unk> noted that <unk> banking practices are grounds for removing an officer or director and closed with the <unk> to mr. paul govern yourself <unk> + the state agency was particularly <unk> to learn that the rubens and a <unk> other paintings listed among the bank 's furniture and <unk> were actually hanging in the chairman 's house + mr. paul says that at one point he did indeed have eight or nine of the paintings at home and that the rest were in storage at sotheby 's + he explains that he was merely <unk> the paintings at home with some display because of the special <unk> environment required for their <unk> until centrust 's new building was ready for them + still the incident was embarrassing + it came on the heels of a number of local newspaper articles suggesting that mr. paul has benefited <unk> from his association with centrust + for instance he got a $ N million loan from the s&l negotiated at a <unk> rate + he owns N N of centrust 's shares + adding to mr. paul 's problems dealers some with vested interests insist that he relying rather too heavily on sotheby 's advice paid much too much for several pieces in the centrust collection + the $ N million <unk> on the rubens for example was a record price for the artist and maybe twice its value given a dispute among scholars about its <unk> + david <unk> the president of david <unk> inc. a new york gallery says scholars question the <unk> of the rubens + it may have been painted instead by a rubens associate + the feeling among many experts on the commercial side is that the price paid at the time was excessive in any event mr. <unk> says + it sounds like with the rubens he got absolutely taken to the <unk> + victor <unk> the executive director of the <unk> association of america agrees that mr. paul paid very <unk> for the rubens and adds that getting rid of it any time soon for a similar sum would be quite a feat + it 's not beyond credibility the rubens will someday be worth $ N million but whether it could be sold for that amount tomorrow remains to be seen + still predicting is tricky + i 'm forever <unk> by what i see making these high prices + jonathan h. <unk> the son of the painting 's former owner mrs. rush <unk> <unk> the price talk as sour <unk> + dealers <unk> of the purchase price he says were themselves interested in buying the rubens but lost out + mr. paul for his part <unk> the rubens price saying a lot of the experts have never seen the thing itself + most of them were n't even born the last time the painting was displayed publicly he says + art prices are <unk> but a good deal of <unk> is involved in <unk> statistics on sales + salomon brothers inc. the investment-banking firm in its annual tally of investment returns reported that old masters <unk> N N in the year ended june N the greatest return of any of N assets it tracked + <unk> and modern paintings not tracked by salomon are ranked even higher at N N by sotheby 's + salomon moreover gets its data on art appreciation from sotheby 's whose prices go up with clients like mr. paul in its <unk> + the <unk> <unk> from consideration the many paintings that go <unk> at auction + art indexes track winners not losers + but art that has fallen sharply in value is rarely put up for sale + also at any of sotheby 's auctions of old masters roughly one-third to <unk> of what is offered does n't sell at any price + it 's not that there are n't any bids but the bids do n't meet the minimum reserve prices set by the sellers + in january the <unk> painting that now hangs at centrust was expected to bring no more than $ N at auction until mr. paul came along with his $ N million + mr. hall of the <unk> gallery says $ N million would have been an impossible price for anyone to ask for a <unk> four years ago + but from his <unk> point it is n't that mr. paul a customer of his too <unk> for the work a <unk> painting by an artist who is not a household word + the painting is N feet wide seven feet high + rather it just shows things have changed + mr. paul boasts that he spotted bargains in old masters just before they took an upward turn + they went up N N last year and they 'll do it again this year he declares + they were a <unk> + everybody was out buying <unk> + sotheby 's vice president <unk> <unk> says the auction house has been <unk> mr. paul in selling the paintings + and while sotheby 's chief rivals in the art world private art dealers wo n't be happy to hear it she adds a number of the <unk> have already been sold and at a substantial profit + mr. paul claims to have sold three paintings at more than a N N profit + that is n't N N and the claim is n't <unk> + he furthermore denies that he relied too heavily on sotheby 's or mr. wachter + mr. paul says he had not one but four advisers and that he never bid <unk> + after all he had the counsel of <unk> from the most reputable <unk> in the world + he says he expects to sell the collection including the controversial rubens carefully and <unk> just as it was put together + but in <unk> <unk> mr. paul 's holdings are <unk> + that is he is being <unk> to put them on the market too soon and has already gotten offers that are less than he paid for some of the art works + after a few years you can argue there has been natural appreciation says susan <unk> the publisher of leonard 's annual price index of art auctions + but quick turnover in <unk> is like <unk> your jewelry you end up with N N + people hold out and try to get a bargain + sotheby 's <unk> itself and mr. paul in the matter + mr. wachter says mr. paul was a quick study who worked intensely and bought the best pictures available at the moment + on occasion he paid a high price mr. wachter concedes but he says those who bid less and dropped out were dealers who would then have marked up the paintings to <unk> them at a profit to collectors + <unk> <unk> <unk> a <unk> <unk> at <unk> associates in san francisco considers it <unk> conflict of interest for an auction house to both advise a client on purchases and to set price estimates on the paintings to be purchased + sotheby 's she says is wearing both hats + i ca n't see why there would be a conflict of interest says sotheby 's ms. <unk> + estimates are based on the previous price of similar works sold at auction and current market conditions and are not affected by any knowledge of who the potential buyer could be + frequently clients express interest in paintings but do n't end up bidding she adds so we do n't know who the potential buyer will be + mr. paul in selling off his paintings is seeking at least a N N return on the bank 's investment so as to prove that the venture was sound + mr. paul says that he has <unk> out over much of the globe and that potential buyers from as far away as japan and italy have examined the collection + because of the pressure on centrust to sell dealers and collectors have been trying to get the paintings at <unk> prices + but so far mr. paul and his advisers are holding fast + one dealer martin <unk> of french & co. in new york says he would have loved to buy a jan <unk> de <unk> painting from the bank + i tried to steal the picture to buy it <unk> and sotheby 's would n't do it + they were protecting his interests + meanwhile mr. paul and centrust executives are getting <unk> about <unk> + mr. paul has been characterized as the great <unk> or something complains karen e. <unk> an executive vice president of centrust + the media she says have distorted his personal life + mr. paul <unk> in agreement + i do n't think i have a life style that is frankly so flamboyant he says + but at just that moment he is interrupted in his office by a <unk> in <unk> who <unk> coffee from silver into a cup of china and <unk> the <unk> with <unk> + mr. paul says yes the ceiling in his executive <unk> is <unk> <unk> + the offices are done in <unk> and <unk> <unk> <unk> books and of course a $ N million rubens + but he <unk> that the <unk> be played down + do n't say it 's a gold ceiling + just say the offices are <unk> appointed he says + otherwise the regulators will take it for <unk> and <unk> everything 's got to be <unk> + figures do n't include taxes or transaction costs + companies listed below reported quarterly profit substantially different from the average of analysts ' estimates + the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share + estimated and actual results involving losses are omitted + the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days + otherwise actual profit is compared with the 300-day estimate + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + creative accounting mostly by <unk> forced <unk> to change their way of setting standards to be followed by corporations reporting financial results standards that had become all too flexible + the new financial accounting standards board fasb was created in N to replace the accounting principles board of the american institute of certified public accountants + all of the former board 's members were <unk> <unk> <unk> criticism because they were writing rules while handling clients ' books at the same time + the new board 's <unk> structure kept four <unk> but the others were from industry and <unk> + francis m. wheat a former securities and exchange commission member headed the panel that had studied the issues for a year and proposed the fasb on march N N + the former board had produced N opinions and N critics in its 12-year life its chairman had conceded + the climate was right for the new fasb + in the late 1960s some <unk> failed to correct such abuses as clients picking <unk> rules that <unk> earnings and stock prices + and in november N congress had passed a special act to <unk> one board rule + also james needham an sec commissioner in april N had warned that the industry might face a federal agency writing accounting rules if they rejected the fasb idea + <unk> of the books dubbed figure <unk> <unk> the threat + the fasb had its initial meeting on march N N + on dec. N N it issued its first rule it required companies to disclose foreign currency <unk> in u.s. dollars + the fasb since then has issued N rules and some still <unk> industry + since late N for example it has put off a rule dealing with deferred income taxes because of the continuing controversy over the issue + <unk> industrial corp. said it plans to repurchase N shares or about N N of its shares outstanding in open market transactions + the metal products concern currently has N million common shares outstanding + <unk> previously had said it planned to repurchase shares but did n't disclose when or how many shares it intended to buy back + the company named dillon read & co. as its exclusive agent for the stock buy-back program + a seat on the chicago board of trade was sold for $ N down $ N from the previous sale last tuesday + seats currently are quoted at $ N bid $ N asked + the record price for a full membership on the exchange is $ N set aug. N N + an associate member seat was sold for $ N up $ N from the previous sale oct. N + associate member seats currently are quoted at $ N bid $ N asked + the record price for associate membership is $ N set aug. N N + <unk> industries ltd. said its link flight <unk> division was awarded a contract by the u.s. army for two helicopter <unk> which the company valued at as much as N million canadian dollars us$ N million + <unk> said the fixed price for the first of the <unk> <unk> combat mission <unk> is c$ N million + it is scheduled for delivery in late N + the price of the second <unk> ranges between c$ N million and c$ N million <unk> said depending on when the army exercises its option + <unk> is a toronto-based maker of commercial and military aircraft <unk> and training equipment + <unk> inc. said it agreed to team with a unit of <unk> honeywell inc. to provide power <unk> for a new military <unk> system being proposed by honeywell + total value of the contract could be $ N million <unk> said and work on the project would be about evenly divided + as previously reported <unk> emerged from chapter N bankruptcy-law protection in february + this los angeles company and its union federal savings bank subsidiary said more than N N of their N N N convertible subordinated debentures due N were tendered for conversion into <unk> common stock + the conversion increased total equity capital by about $ N million to a total of $ N million + union federal a federally insured savings bank has $ N billion in assets + david d. lung was appointed president and chief operating officer of this maker of building materials for manufactured homes and recreational vehicles + as president mr. lung N years old succeeds his father <unk> d. lung N who founded the company in N + <unk> lung remains chairman and chief executive officer + david lung has been with patrick since N and has served as vice president for administration and purchasing since N + general dynamics services co. a unit of general dynamics corp. won a $ N million army contract to establish maintenance facilities for tracked vehicles in pakistan + grumman corp. was given a $ N million navy contract for <unk> improvements + hughes aircraft co. a unit of general motors corp. got a $ N million air force contract for <unk> equipment + reynolds metals co. said third-quarter net income dropped nearly N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + the latest earnings reflect an increase of about N million in common shares outstanding + revenue rose N N to $ N billion from $ N billion + reynolds is the third big aluminum company since friday to report disappointing earnings + the no. N domestic aluminum producer aluminum co. of america friday said its earnings fell N N to $ N million or $ N a share + and <unk> <unk> ltd. yesterday reported net income slid N N to $ N million or N cents a share from $ N million or $ N a share + analysts on average had been expecting about $ N for <unk> and $ N for <unk> + it 's a good indication that level of profitability has peaked for the industry says <unk> <unk> metals analyst with <unk> ball & <unk> inc. who had estimated reynolds would earn about $ N a share + the nation 's no. N aluminum company said earnings were hurt by lower prices for certain <unk> aluminum products which typically follow price fluctuations of primary <unk> + the base metal price has dropped N N from a year earlier to N cents a pound + much of the price decline has been blamed on a slowing economy and the third quarter is typically the industry 's <unk> period + but william o. <unk> chairman and chief executive officer said the <unk> price appears to have <unk> out + he said shipments are continuing at a healthy pace and the company has no excess inventory + aluminum shipments of N metric tons were nearly equal to the year-earlier period the company said + nevertheless the company said that in the latest quarter there were increased material and labor costs including a new employee <unk> plan + in composite trading on the new york stock exchange reynolds closed at $ N up $ N + no <unk> but certainly no home run + that 's how the <unk> game is shaping up for the months ahead according to money managers and a few brokers + yesterday 's <unk> recovery from friday 's <unk> in the dow jones industrials had many brokerage houses <unk> that stocks are a good bargain again + but quite a few money managers are n't buying it + weakening corporate earnings they say are no prescription for a bull market + the stock market ai n't going to do much of anything for a while says john <unk> of wellington management who runs the $ N billion windsor fund + he suspects that friday 's market decline may have a second leg perhaps a N N to N N drop later on + mr. <unk> says the stock market has lost some powerful driving forces namely earnings growth and the lbo <unk> buy-out fever that <unk> investors to bid up whole groups of stocks such as media and airlines + after sitting with N N of his fund in cash before friday 's sell-off mr. <unk> says he bought a narrow list of stocks yesterday + with flat corporate profits on the horizon for N money managers say price-earnings multiples that look cheap today might go on being cheap for a long time + this is not a grossly <unk> market but it 's not cheap either says george collins president of the mutual fund company t. rowe price associates in baltimore + according to institutional brokers estimate system wall street market strategists see only a N N jump in company profits in N unlike in N when profits a year out looked good they did soar N N in N + bulls say the market is an incredible bargain priced at only about N times estimated N earnings for stocks in the standard & poor 's N index + before the N crash the <unk> was more than N + the common view says <unk> cohen strategist for drexel burnham lambert is that there will be mild economic growth modest profit expansion and things are going to be <unk> + our view is that we may see a profit decline + some think investors should sell into rallies + the market is going to wind down says gerald w. <unk> a chicago money manager + things are a little less <unk> after friday 's jolt in the market + he expects stocks to decline an additional N N to N N with the dow perhaps <unk> out between N and N between now and june + after friday 's decline mr. <unk> 's firm ran statistical tests on N high-quality stocks using old-fashioned value criteria devised by benjamin graham an analyst and author in the 1930s and <unk> who is widely considered to be the father of modern securities analysis + he found N still <unk> and N fairly valued + nicholas parks a new york money manager expects the market to decline about N N + i 've been two-thirds in cash since july and i continue to think that having a defensive position is appropriate he says + companies that <unk> on debt in leveraged buy-outs during the past two years will continue to surface as business problems + <unk> about value are n't useful says new york money manager john <unk> of delta capital management + for instance he says international business machines and unisys might look cheap but investors might continue to do better with stocks like walt disney procter & gamble and coca-cola strong performers in recent years + money manager robert ross head of <unk> ross associates ltd. in vancouver british columbia says stocks would have to fall N N to N N before they are competitive with less risky investment alternatives + <unk> russell a money manager in <unk> okla. says friday 's <unk> is going to have more of a permanent impact on the <unk> of many investors than wall street would want to admit + there are still bulls out there + i still think we will have a N dow whether it 's six months or N months from now i do n't know says david <unk> managing partner of <unk> value management in new york + we 're doing a little buying in some stocks that have really been <unk> down + many brokerage house officials also are optimistic + yesterday goldman sachs merrill lynch and dean witter all increased the proportion of assets they recommend investors commit to stocks + dean witter now recommends N N goldman N N and merrill lynch N N + some investors say friday 's sell-off was a good thing because it <unk> a lot of crazy takeover speculation + it was a healthy <unk> says michael <unk> who runs salomon brothers asset management in new york + from here out these investors see a return to old-fashioned investing based on a company 's ability to show profit growth + the fundamentals are pretty strong mr. <unk> says + i do n't see this as a bear market at all + it 's a recognition that there was much too much <unk> in the lbo market + friday 's big fall was just a <unk> by the stock market says john connolly chief strategist for dean witter + it was an <unk> to an event the failure of a management and union group to get bank financing for a takeover of ual that does n't mean that much to lots of stocks + many investors have nagging worries however + newspapers are full of <unk> about companies <unk> on their debts and banks writing off real estate loans + that <unk> investors ' confidence in the economy and stocks + not even all the brokerage firms see clear sailing ahead + disappointing profits are likely to get worse in the next two quarters says mary farrell a market strategist at painewebber + she thinks the market could drop about N N in the next few months then recover and go higher + companies with steady earnings growth could do well she says while others with high debt or poor earnings could see their shares decline far more than N N + the turmoil on wall street may benefit some retailers attempting to lead leveraged buy-outs of their specialty and department-store chains investment bankers and retailers said + managers at five chains have said in recent weeks that they intend to bid for their companies + the chains include bloomingdale 's owned by campeau corp. toronto saks fifth avenue and marshall field 's owned by b.a.t industries plc london and b. altman & co. and <unk> inc. owned by hooker corp. which is now being managed by a court-appointed provisional <unk> + hooker is based in sydney australia + the combination of so many chains available for sale the recent failures of such retailing lbo 's as miller & <unk> inc. and declining investor confidence will drive down prices retailing observers said + the pricing will become more realistic which should help management said bruce rosenthal a new york investment banker with nathan s. <unk> & co + investors are n't going to be throwing money at any of the proposed lbos but doing deals on the basis of ridiculous assumptions never made sense either + earlier this year bankers and other investors were willing to provide financing because they assumed there would be major gains in both profitability and sales mr. rosenthal added + those days are over now he believes + competition from third parties who have cash and are prepared to buy has always existed and will continue added mr. rosenthal + but when prices were crazy it was even harder to do an lbo + bankers believed in the <unk> theory that says somebody else is always willing to pay more + this is no longer true today + at saks fifth avenue paul <unk> senior vice president marketing agreed that lower prices will help his management team in their proposed lbo + having to take on less debt would certainly be an advantage said mr. <unk> + it would also help us in our search for equity partners + to make an lbo work now we are going to need more than just junk bonds + none believe the proposed management lbos will be easy to complete especially at b. altman & co. which is under chapter N bankruptcy protection + not only could the wall street gyrations damp christmas sales if consumers lose confidence in the economy but potential junk-bond buyers are sure to demand even stronger <unk> and greater management equity participation + further many institutions today holding troubled retailers ' debt securities will be <unk> to consider additional retailing investments + it 's called bad money driving out good money said one retailing <unk> + institutions that usually buy retail paper have to be more concerned + however the lower prices these retail chains are now expected to bring should make it easier for managers to raise the necessary capital and pay back the resulting debt + in addition the fall selling season has generally been a good one especially for those retailers dependent on apparel sales for the majority of their revenues + what 's encouraging about this is that retail chains will be sold on the basis of their sales and earnings not liquidation values said joseph e. brooks chairman and chief executive officer of ann taylor inc. a specialty chain + retailers who had good track records of producing profits will have a better chance to buy back their companies + still most retailing observers expect that all the proposed retailing lbos will depend partly on the sale of junk bonds a market already in <unk> in part because of concerns associated with bonds issued by the federated and allied units of campeau + prices for retail chains are lower today than they were last week which will help management said <unk> harrison chairman of <unk> inc. an investment-banking firm specializing in retailing acquisitions + but the hurdle of financing still has to be resolved + potential bondholders will either look for greater equity participation on behalf of management or insist the equity component of the deals be substantially greater than in the past + sony corp. won a pretrial order blocking u.s. sales of justin products inc. 's my own line of portable audio players for children + judge john e. <unk> issued the order in manhattan federal court where sony has accused the tiny company of illegally knocking off the my first sony line + the judge held that the combination of colors used for the sony products is distinctive and subject to protection under new york state law rather than federal law + the legal fight was the subject of a wall street journal story yesterday + justin 's attorney charles e. <unk> said justin would ask an appeals court to set aside the order temporarily pending an <unk> appeal + he also repeated justin 's <unk> of sony 's charges + their likelihood of <unk> us is very slim said lewis h. <unk> sony 's attorney who said he doubts justin will go ahead with a trial + continental mortgage & equity trust said it will resume dividend payments with a <unk> payout on nov. N to shares of record oct. N + the dallas real estate investment trust last paid a dividend on dec. N N when shareholders received $ N a share + despite continuing troubles with problem assets and nonperforming loans the trust said it expects to be able to maintain or increase the rate of distributions because of operations of joint-venture properties + a federal appeals court struck down a natural-gas regulation that had prevented pipeline companies from passing to customers part of $ N billion in costs from controversial <unk> contracts + the court in a N ruling threw out a deadline set by the federal energy regulatory commission for settling old contract disputes over gas that the pipeline companies reserved but did n't use + ferc 's regulation had given pipelines until march N N to pass on to customers as much as N N of the costs of buying out their broken contracts which were made with producers when gas prices were high and supplies short + a majority of old contracts were <unk> by the deadline and settled at steep discounts + but pipeline companies estimate they still face $ N billion in liabilities from <unk> disputes including $ N billion they fear they wo n't be able to pass on to customers + according to industry lawyers the ruling gives pipeline companies an important second chance to resolve remaining disputes and take advantage of the cost-sharing mechanism + the court left open whether ferc could <unk> a new deadline later + the court agreeing with pipeline companies found the march N deadline was <unk> and <unk> and highly <unk> to the bargaining power of pipelines that were forced to negotiate settlement of the old <unk> contracts to meet the deadline + a report last month by the interstate natural gas association of america found that pipelines ' settlement costs had jumped in the three months before the deadline to N cents on the dollar from N cents on the dollar in N + the court ordered ferc to justify within N days not only its cost-sharing deadline but other major elements of its proposed regulation for introducing more competition into natural-gas transportation + the court also questioned a <unk> mechanism that could be used to resolve <unk> liabilities + the complex regulation known in the industry as order N has been <unk> contested by all sides including natural-gas producers pipelines local distribution companies and consumers + the court 's decision would allow ferc to change some of its provisions but <unk> it will be reviewed again quickly by the court + <unk> corp. said it voluntarily prepaid $ N million on its original $ N million term loan bringing the total debt reduction for the year to $ N million + after the payment the cleveland company owes $ N million on the loan + the cement producer said the payment was made from excess cash flow + national income realty trust said it will resume dividend payments with a <unk> dividend to be paid nov. N to shares of record oct. N + the mortgage and equity real estate investment trust last paid a dividend on aug. N N when holders received N cents a share + despite continuing troubles with problem properties and nonperforming loans the dallas trust said it has <unk> reserves abandoned properties with little potential and experienced improved operating results from joint ventures + mlx corp. said it reached a preliminary agreement with senior lenders to its <unk> and <unk> group to restructure the $ N million of credit facilities the lenders provide to the group + mlx which also makes aircraft and <unk> truck parts said the debt was accumulated during its acquisition of nine businesses that make up the group the biggest portion of which was related to the N purchase of a <unk> co. unit + among other things the restructured facilities will substantially reduce the group 's required amortization of the term loan portion of the credit facilities through september N mlx said + certain details of the restructured facilities remain to be negotiated + the agreement is subject to completion of a definitive amendment and appropriate approvals + william p. <unk> mlx chairman and chief executive said the pact will provide mlx with the additional time and flexibility necessary to complete the restructuring of the company 's capital structure + mlx has filed a registration statement with the securities and exchange commission covering a proposed offering of $ N million in long-term senior subordinated notes and warrants + dow jones & co. said it acquired a N N interest in <unk> corp. a subsidiary of oklahoma publishing co. oklahoma city that provides electronic research services + terms were n't disclosed + customers of either <unk> or dow jones <unk> are able to access the information on both services + dow jones is the publisher of the wall street journal + flowers industries inc. said it will report a charge of eight cents to N cents a share for its fiscal first quarter ended sept. N from the sale of two <unk> in high point n.c. and <unk> <unk> + the <unk> company said it sold the <unk> to mills family <unk> for an undisclosed amount + it said the sales were part of a N federal trade commission consent order + a year earlier flowers had fiscal first-quarter net income of $ N million or N cents a share on revenue of $ N million + <unk> production by the nation 's mills decreased N N last week to N tons from N tons the previous week the american iron and steel institute said + last week 's output rose N N from the N tons produced a year earlier + the industry used N N of its capability last week compared with N N the previous week and N N a year ago + the capability utilization rate is a <unk> designed to indicate at what percent of its production capability the industry is operating in a given week + <unk> b. <unk> was named executive director of the commission effective early november + mr. <unk> N years old succeeds <unk> <unk> N who resigned to join hong kong 's securities and futures commission + mr. <unk> was vice president and director corporate finance of <unk> thomson <unk> inc. a toronto investment dealer + dun & bradstreet corp. 's market data <unk> unit said it acquired school and college construction reports service from intelligence for education inc + terms were n't disclosed + the service supplies weekly reports on school and college construction plans + market data <unk> is a <unk> of educational information and provides related services + closely held intelligence in education of <unk> n.y. is an educational publisher and consultant + a battle is <unk> in venice over plans to have the <unk> italian city be the site for a universal <unk> in N + the plans include a subway system a congress center floating trees <unk> <unk> and as many as N additional tourists a day + <unk> enthusiasts argue that holding the fair would attract businesses create jobs and help <unk> abandoned sections of town + but opponents fear <unk> + this city already has too many tourists and it ca n't hold them all says <unk> <unk> the president of the venice <unk> association + about N italian businesses including fiat s.p a. and <unk> c. olivetti & co. have formed a consortium to lobby for holding the <unk> in venice + three gambling casinos have opened in poland + the three <unk> two in warsaw and one in <unk> accept only foreign currency and are joint ventures between polish firms and western companies + not all poles are pleased + what do we want casinos for when we have n't got anything in the shops one <unk> asked + but <unk> <unk> who runs the casino at warsaw 's <unk> hotel said the ventures would help poland service its $ N billion foreign debt by pouring dollars into the state firms in the joint ventures the lot airline and <unk> tourist organization + <unk> plans to increase natural-gas sales to europe and the u.s. + according to the middle east economic survey the north african nation is holding talks with italy for adding a fourth pipe to a section of the <unk> pipeline expanding capacity by up to six billion cubic <unk> a year from N billion + <unk> also wants to build a pipeline through <unk> and across the <unk> of <unk> to supply spain france and west germany with up to N billion cubic <unk> a year by the late 1990s + south africa 's national union of <unk> agreed to suspend the strike by diamond workers and resume negotiations with de beers consolidated mines ltd. over their wage dispute de beers said + it also said the union had agreed to meet the company for further talks tomorrow + the strike at five de beers mines began last thursday with N out of a total N <unk> members employed on de beers mines participating according to the union while de beers said there were N participants + the union has demanded a N N increase in the minimum wage while de beers 's final offer was an increase of N N + a <unk> environmental conference opened in <unk> <unk> + the gathering is expected to focus on curbing the <unk> of <unk> and <unk> limiting damage from industrial <unk> and improving the handling of harmful chemicals + west german environment minister <unk> <unk> said bonn is convinced of the need for cooperation especially with our neighbors in the east because we are directly affected by their ecological progress or lack of it + the u.s. and canada joined every european country except <unk> at the meeting + the swedish publishers of a new <unk> newspaper rushed an extra edition across the <unk> on oct. N after the first run sold out in one day + editor <unk> <unk> said plans had called for N copies of the monthly are <unk> business paper to be sold at <unk> and an additional N promotion issues to be sent by direct mail + he said N more copies were sent to <unk> because of strong sales + the swedish publishing company <unk> owns N N of are <unk> and the <unk> management company minor owns N N + <unk> <unk> mexico 's top debt negotiator said the country 's creditor banks are responding <unk> to mexico 's <unk> package + mr. <unk> 's optimism contrasts with some bankers ' views that the deal may require a lot of arm <unk> by the u.s. treasury in order to succeed + mr. <unk> mexico 's <unk> of the ministry of finance met yesterday with european bankers in london at the <unk> point on a so-called road show to market the package around the world + an increasing number of banks appear to be considering the option under the deal <unk> they can swap their mexican loans for 30-year bonds with a face value discounted by N N mr. <unk> said + the other two options consist of <unk> loans for bonds with N N interest rates or providing fresh loans + the accord which covers $ N billion of mexico 's medium and long-term debt is expected to go into effect in early + china 's top film actress <unk> <unk> paid $ N in back taxes and fines in <unk> province the people 's daily reported + the amount is equal to about N years earnings for the average peasant who makes $ N a year + china will spend $ N million for <unk> maintenance on <unk> 's <unk> palace former home of the <unk> lama the china news service said + the <unk> lama who was just awarded the nobel peace prize lives in <unk> in india + george w. koch N years old president and chief executive officer of grocery manufacturers of america inc. was elected a director of this maker of <unk> <unk> and specialty foods succeeding <unk> n. white jr. N who resigned + american business computer corp. said it privately placed N common shares at $ N a share + the placement was made through gray <unk> securities new york to institutional investors + proceeds will be used to <unk> recently <unk> technology and support the company 's international expansion + the company develops and markets products for the food service industry + the r.h. macy & co department-store chain is n't for sale + in yesterday 's edition it was incorrectly included with a list of new york chains up for sale + korean car exports have slid about N N so far this year but auto makers here are n't <unk> + they are enjoying domestic sales that are more than making up for lost overseas sales + south korean consumers are expected to buy almost N passenger cars this year up N N from N + in fact some auto executives suggest that <unk> demand for their cars in the u.s. and canada is a blessing otherwise they would n't be able to keep up with demand in the more profitable local market + we are very lucky to easily change an export loss to domestic plus says hong <unk> <unk> managing director of domestic marketing for hyundai motor co + as it is waiting lists of a month are n't unusual for popular models + demand is so strong that all of the domestic makers hyundai kia motors corp. daewoo motor co. and even <unk> ssangyong motor co. plan to build more factories + industry analysts predict that by N south korea will be building three million cars a year about half of that for export + it 's an optimistic move in a industry already facing world-wide overcapacity + but south korean auto makers are confident that the export market will bounce back and that demand in korea will stay strong + currently only one in N south koreans owns a car up from one in N a decade ago + in the year N it will be one car per family + at that point domestic sales will slow down says kim <unk> <unk> director of marketing for daewoo motor + the reason for the tremendous demand is simple south koreans suddenly have a lot more money + we never thought we 'd own a car says <unk> ok <unk> who just bought a daewoo <unk> on a five-year loan + she and her husband started a small printing business and need the car for work as well as for weekend <unk> + pay raises of N N over the past three years have given many south koreans the money to enjoy the things they were supplying the rest of the world + the success of <unk> ssangyong motor shows the strength of the auto market and its growing diversity + a part of the <unk> conglomerate ssangyong group it took over the dying <unk> motor co. in N + ssangyong began making variations of the <unk> <unk> vehicle + <unk> had had a technology agreement with jeep maker american motors corp. now a part of chrysler corp + the most popular style is the stretched family which resembles a ford <unk> or chevy <unk> + the <unk> vehicles start at $ N a family can cost over $ N + ssangyong which has only about N N of the domestic market will sell about N of its models this year twice as many as last year + it sees sales rising N N to N units next year + the company plans to expand plant capacity N N by N + by then it also hopes to begin producing a passenger car based on the <unk> N and selling for about $ N + hyundai and daewoo seem <unk> about the ssangyong threat but kia the <unk> <unk> auto maker is selling <unk> vehicles through its asia unit + it plans to sell N units in N + kia the only korean car maker that has seen its overseas sales grow in N aims at korea 's common man + its advantage has been the <unk> little pride sold as the ford <unk> in the u.s. + at N million won or $ N the <unk> is the <unk> car in south korea + along with two larger models the company claims N N of the domestic market + ford motor co. and japan 's mazda motor corp. have equity interests in kia + kia is the most aggressive of the korean big three in offering financing + loans for as long as five years make the cars very accessible with monthly payments as low as N won or $ N + daewoo motor a N joint venture with general motors corp. and the daewoo group conglomerate is the only auto maker that appears to be hurting + shipments of its <unk> to gm 's <unk> division are off about N N from a year ago <unk> a N N decline for hyundai and an N N increase for kia + moreover daewoo 's domestic sales have grown half as fast as sales of its rivals + the big problem for daewoo which holds about N N of the market is the long series of labor disruptions it suffered this year + but daewoo is expanding too + in fact a sister company daewoo shipbuilding and heavy machinery plans to build N <unk> by the mid-1990s + hyundai the korean market leader with a N N share also plans to jump into <unk> at the same time + it has a similar project for N cars a year + kia is reportedly also considering such a plan + even giant <unk> group is rumored in the korean press to be considering getting into the <unk> business a company spokesman had no comment + robert p. <unk> N years old was named president and chief administrative officer of this regional commercial bank + both posts had been vacant + robert <unk> N was named to the new positions of vice chairman and chief credit officer + many <unk> mutual fund investors picked up the phone yesterday but decided not to cash in their chips after all + as the stock market bounced back withdrawals of money from stock funds amounted to a mere <unk> compared with black monday when investors dumped $ N billion or about N N of <unk> assets + fidelity investments the nation 's largest fund company said phone volume was more than double its typical level but still half that of oct. N N + net outflows from fidelity 's stock funds stood at less than $ N million or below N N of the $ N billion cash position of the firm 's stock portfolios + much of the money was switched into the firm 's money market funds + outflows since the close of trading friday remain below one-third their level of two years ago fidelity said + other mutual fund companies reported even lighter withdrawal requests + and some investors at fidelity and elsewhere even began buying stock funds during the day + two years ago there was a lot of redemption activity and trouble with people getting through on the phone said <unk> <unk> head of the investment management division of the securities and exchange commission + this time we do n't have that at all + of course the relative calm could be jolted if the market <unk> again + and any strong surge in redemptions could force some funds to dump stocks to raise cash as some did during black monday + but funds generally are better prepared this time around + as a group their cash position of N N of assets in august the latest figure available is N N higher than two years earlier + many fund managers have boosted their cash levels in recent weeks + the biggest flurry of investor activity came early in the day + vanguard group inc. saw heavy exchanges from stock funds into money market funds after the telephone lines opened at N a.m + in the first hour the real nervous folks came along a spokesman said + but the <unk> pace of call volume in the first half-hour slowed considerably + at <unk> stevens & clark inc. phone calls came in at N N more than the normal pace through early afternoon + most of that increase came in the first hour after the phone lines opened at N a.m + as stocks rose in fact some investors changed course and reversed their sell orders + many funds allow investors to <unk> orders before the close of trading + at <unk> and at the smaller ivy funds group in <unk> mass. for instance some shareholders called early in the morning to switch money from stock funds to money market funds but later called back to reverse the switches + because mutual fund trades do n't take effect until the market close in this case at N p.m. these shareholders effectively stayed put + at fidelity 's office in downtown boston gerald sherman walked in shortly after N a.m. and placed an order to switch his retirement accounts out of three stock funds and into a money market fund + but by N p.m. with the market <unk> ahead for the day mr. sherman was preparing to undo his switch + it 's a nice feeling to know that things stabilized said mr. sherman the <unk> <unk> of a discount department store + but some investors continued to switch out of high-risk high-yield junk funds despite yesterday 's rebound from that market 's recent price declines + shareholders have been steadily <unk> out of several big junk funds the past several weeks as the $ N billion market was jolted by a cash crunch at campeau corp. and steadily declining prices + much of the money has been switched into money market funds fund executives say + instead of selling bonds to meet redemptions however some funds have borrowed from banks to meet withdrawal requests + this <unk> knocking down prices further + the $ N billion t. rowe price high yield fund was among the funds that borrowed during the campeau crisis says george j. collins president of t. rowe price associates inc + that way mr. collins says we did n't have to sell securities in a sloppy market + when the market stabilized he added the firm sold the bonds and quickly paid the loans back + tom <unk> contributed to this article + <unk> financial inc. said it agreed to acquire central of illinois inc. in a stock swap + shareholders of central a bank holding company based in sterling ill. will receive <unk> stock equal to N times central 's N earnings <unk> said + for the first nine months of N central earned $ N million + <unk> also a bank holding company has assets of $ N billion + central 's assets are $ N million + during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history + soft contact lenses won federal blessing on march N N and quickly became eye <unk> for their makers + the food and drug administration that day said bausch & <unk> could start selling them in the u.s. + the <unk> product was more comfortable and less prone to falling out than hard contact lenses which had been around since N + bausch & <unk> sold the <unk> under a <unk> from national patent development which had gained the rights from the czechoslovakia academy of sciences + <unk> <unk> a <unk> invented them in N + the plastic lens <unk> itself over the <unk> <unk> eye <unk> while permitting <unk> to pass through + but the new lens became the eye of a storm + in september N california officials seized <unk> lenses made by <unk> companies after some showed <unk> of bacteria + in october doctors were <unk> the product 's safety some claiming it caused <unk> + and there were senate hearings on the questions in july N + the product <unk> the bad publicity and kept <unk> + the early soft lenses which cost $ N a set were expected to last for a year + in N extended wear versions designed to be <unk> for N days at a time <unk> offered + <unk> months ago a disposable seven-day model bowed a year 's supply costs about $ N + last month the fda and contact lens institute cautioned users that serious eye <unk> could result from wearing lenses more than seven days at a stretch + today N million of the N million americans using contact lenses are using the soft type + including the <unk> eye care products contacts account for $ N billion in annual retail sales + although bausch remains the leader among the six <unk> johnson & johnson with its new <unk> is coming on fast + the roller-coaster stock market is making life tougher for small companies trying to raise money + in the wake of friday 's plunge and yesterday 's rebound some companies are already <unk> deals and others wish they could + as in other jittery times many small businesses expect a particularly rough time raising funds as investors <unk> risky deals seeking safety in bigger companies + even if stock prices fully recover from friday 's sharp decline the unsettled conditions will <unk> many investors + the implication of an unsettled situation is that the thing could drop dramatically says henry <unk> jr. chairman of <unk> corp. a four-year-old biotechnology company that is planning a private placement of stock + the more <unk> that indicate risk the more the investor is going to drive a hard bargain + earlier this month <unk> inc. a <unk> mass. <unk> <unk> said it would accelerate expansion plans nationwide and offer more of its stock to the public + at the time its shares were selling above their initial offering price of $ N and bankers believed <unk> would sell new stock without a <unk> + but with the company 's shares standing at $ N yesterday a new offering seems unlikely company officials say + business however continues to be robust and the stock market has n't affected the concern 's expansion plans says <unk> <unk> a senior executive + other companies figure they ca n't avoid the market + we have capital requirements says mr. <unk> so we have to go ahead with a planned $ N billion private placement + unless the market goes right back up he says it may take us six to nine months to find the money instead of three + and the columbia md. company may have to settle for a lower price he adds + life is particularly <unk> for companies that had planned to go public this week + <unk> is becoming an investment-banking job requirement + robertson <unk> & co. a san francisco investment banking concern has a client that looked forward to making its initial public offering yesterday + officers of the company a health-care concern were very discouraged on friday and felt they should n't go public we felt they should says sanford robertson partner in the banking concern + as the market dropped friday robertson <unk> slashed the value of the offering by N N + yesterday when similar securities rebounded it <unk> the valuation up again + as of late yesterday the ipo was still on + for many the situation is especially discouraging because the market for <unk> was showing signs of strengthening after several years of weakness + we were just beginning to look at the increase in <unk> seeing the light at the end of the tunnel says frank <unk> jr. partner in <unk> funds a beverly hills calif. venture capital concern + but the tunnel 's just gotten longer + companies planning to go public are definitely taking a second look says allen <unk> senior analyst at the institute for <unk> research fort <unk> fla. which publishes the new issues newsletter on <unk> + he <unk> that the recent market slide translated into a N N to N N reduction in ipo proceeds to companies + many companies are <unk> + <unk> corp. had been planning to sell N N of its stock this week in an ipo that would raise up to $ N million + but now peter <unk> president says we 're making decisions on a day-to-day basis + <unk> and profitable the <unk> colo. <unk> concern could borrow funds if it decides against an ipo now he says + <unk> inc. an atlanta <unk> concern says it is still planning to go ahead with its ipo this week or next unless conditions change + it 's a <unk> situation right now says terry <unk> president + delayed financings also would affect the operations of many companies + sierra tucson cos. a tucson ariz. operator of <unk> centers has a planned doubling of capacity riding on an ipo scheduled for next week + william <unk> president says he still thinks the ipo will succeed + if it does n't he says the company would have to change its expansion timetable + but the market turmoil could be partially beneficial for some small businesses + in a sagging market the federal reserve system might flood the market with funds and that should bring interest rates down says leonard t. <unk> vice president of the bank of new england boston + james g. <unk> president of <unk> savings bank <unk> mass. says the market turmoil is an <unk> <unk> for small business + for small companies he says interest rates are far more important than what happens on stock exchanges + mr. <unk> thinks rates are heading down helping small companies + peter <unk> biotechnology analyst for <unk> securities international chicago thinks market uncertainty may encourage small companies to form more strategic alliances with big corporations + partly because the N market crash made it harder for them to find financing many high-technology concerns have made such alliances recently + some even see a silver <unk> in the dark clouds + alan wells president of <unk> wells <unk> & co. a new york merger specialist thinks <unk> investors may lose their enthusiasm for leveraged buy-out and giant takeover deals + instead they could turn to investing in smaller deals involving smaller companies he says + and william e. <unk> jr. a university of new hampshire management professor and director of venture capital network inc. says the market 's gyrations will <unk> the investors ' lack of control in big stock investments + this will add to the appeal of small business he says where investors often have a degree of influence + bay financial corp. hurt by high debts and deteriorating real estate investments reported a wider loss for the fourth quarter and said it might be forced to seek a bankruptcy-court reorganization if it ca n't <unk> its borrowings + bay said a substantial part of its debt outstanding is in default as a result of inability to sell certain properties quickly and lower-than-expected prices for sales made + the company said its real estate portfolio is highly leveraged while about two-thirds of its investments are n't <unk> + thus it is coming up short on a big bet that quick sales at higher prices would enable it to keep up with mortgage and other debt payments + according to its latest annual report about a quarter of the company 's holdings are in massachusetts in the midst of a real-estate slump + the company said it had a net loss in its fourth quarter ended june N of $ N million or $ N a share on revenue of $ N million + a year earlier the company had a loss of $ N million or $ N a share on revenue of $ N million + for the year it had a net loss of $ N million or $ N a share on revenue of $ N million + in the previous year it had a loss of $ N million or $ N a share on revenue of $ N million + although it is having serious <unk> problems bay said the <unk> value of its holdings minus debt was equal to $ N a share at june N based on a recent <unk> + book value per share which is based on investments at cost was a negative $ N a share + a year earlier <unk> value per share was $ N and book value was $ N a share + annualized interest rates on certain investments as reported by the federal reserve board on a <unk> basis N and wednesday october N N + <unk> adjusted for constant maturity + <unk> inc. reported a N N decline in third-quarter net income but the company said that excluding unusual gains in both quarters operating profit rose N N + the electronics automotive and aerospace concern said third-quarter net was $ N million or N cents a share down from $ N million or $ N a share a year earlier + share earnings are reported on a fully diluted basis by company tradition + results for the N quarter included a gain of $ N a share from sale of the <unk> pump and <unk> cable units partly offset by a charge of N cents a share for recall of <unk> truck steering systems + the latest quarter included a gain of N cents a share as a partial reversal of the recall charge because the reserve established last year exceeded the actual recall costs + sales for the quarter rose N N to $ N billion from $ N billion with all three major product groups reporting gains + the company said aerospace and defense sales were up N N for the quarter to $ N million and operating profit climbed N N to $ N million mainly because of improved program performance in spacecraft and <unk> contracts + automotive sales jumped N N to $ N million mainly because of higher sales of air bags and other passenger restraint systems <unk> said + the group had an operating profit of $ N million against a loss of $ N million a year earlier + however excluding the year-earlier charge for recall of steering gear operating profit in the latest quarter declined N N reflecting higher start-up and product development expenses in <unk> systems + materials and production costs also rose <unk> said + the information systems segment had a N N jump sales to $ N million + an acquisition accounted for half the sales rise <unk> said + operating profit rose <unk> to $ N million from $ N million + for the nine months <unk> 's net was $ N million or $ N a share down N N from $ N million or $ N a share a year earlier + sales rose N N to $ N billion from $ N billion + a <unk> <unk> by an <unk> not <unk> though <unk> <unk> english butler in his <unk> proceeds as if the realistic english novel of <unk> like <unk> herself still ruled the waves + in fact <unk> <unk> 's the remains of the day <unk> N pages $ N is both an <unk> to traditional english forms and a dramatic <unk> of them + it implies that the british empire was rooted in its subjects ' minds <unk> and <unk> and argues <unk> that its <unk> flaws were <unk> in the defensive <unk> willful <unk> <unk> and especially the <unk> of its domestic <unk> + as the <unk> stevens the <unk> butler of <unk> hall <unk> over such <unk> terms as <unk> dignity service and loyalty we see how <unk> <unk> <unk> the soul + stevens 's <unk> <unk> of the public and private <unk> like his <unk> master 's <unk> all it was designed to preserve + such <unk> <unk> the <unk> + the <unk> cuts to the quick + it 's N the year the suez crisis marked the final end of empire + as he stands on a hill at the beginning of a <unk> motor <unk> from <unk> to <unk> where a former <unk> <unk> perhaps the victim of an unhappy 20-year marriage perhaps he hopes with more <unk> than he will ever acknowledge not <unk> to return to domestic service stevens surveys the view and thereby provides a <unk> a <unk> and the author 's <unk> for the <unk> of the novel we 're reading + we call this land of <unk> great britain and there may be those who believe this a somewhat <unk> practice + yet i would venture that the landscape of our country alone would justify the use of this <unk> <unk> + it is the very lack of obvious drama or <unk> that sets the beauty of our land apart + what is <unk> is the <unk> of that beauty its sense of restraint + it is as though the land knows of its own beauty of its own <unk> and feels no need to <unk> it + in comparison the sorts of sights offered in such places as africa and america though undoubtedly very exciting would i am sure strike the objective <unk> as <unk> on account of their <unk> <unk> + an <unk> landscape + an <unk> mountain + but let stevens continue in his <unk> comic manner his <unk> efforts at <unk> always fail most <unk> this whole question is very <unk> to the question that has caused much debate in our profession over the years what is a great butler + his answer is one <unk> of a dignity in keeping with his position + such dignity has to do <unk> with a butler 's ability not to abandon the professional being he <unk> + he will not be shaken out by external events however surprising <unk> or <unk> + <unk> are unable to be <unk> because they are as a breed <unk> of the emotional restraint which only the english race are capable of + despite his racial advantage to be a great butler is a <unk> calling one 's <unk> is not unlike general 's headquarters during a battle + if for example in the midst of a great social occasion such as an international conference on <unk> the <unk> treaty in N one 's <unk> father himself a great butler once should happen to die of a <unk> one must continue to serve the port please do n't think me <unk> improper in not <unk> to see my father in his <unk> condition just at this moment + you see i know my father would have <unk> me to carry on just now + it is this kind of dignity and restraint that allows stevens to declare for all its sad associations whenever i recall that evening today i find i do so with a large sense of <unk> + we note the imperial public word used to deny private rage and <unk> + that stevens himself is not <unk> or <unk> but funny and sad and <unk> is entirely the author 's <unk> + mr. <unk> 's ability to create a <unk> <unk> voice that permits him to explore such <unk> domestic cultural and political themes was <unk> clear in his previous novel an artist of the floating world set in japan after the war + now shifting his scene from the country he left at five to the england he has lived in for nearly N years he has <unk> a novel in the mode of henry james and <unk> <unk> + with great <unk> he considers not only <unk> <unk> and utterly <unk> sexual love but british <unk> the <unk> 's <unk> with democracy and support of <unk> and the moral <unk> of loyalty it is in practice simply not possible to adopt such a critical attitude <unk> an employer and at the same time provide good service + this employer <unk> all that i find noble and <unk> + i will <unk> devote myself to serving him + this is loyalty <unk> <unk> + in the end after meeting with the former <unk> stevens sits by the <unk> at <unk> thinking of her and of his employer and declares i trusted + i trusted in his <unk> 's wisdom + i ca n't even say i made my own mistakes + really one has to ask <unk> what dignity is there in that + the loyal <unk> has come full circle + what is <unk> + what is dignity + we understand such <unk> wisdom must be <unk> the <unk> of <unk> only spreads her wings at <unk> + but as the remains of the day so <unk> demonstrates with quiet <unk> such wisdom can be <unk> <unk> in art + mr. <unk> teaches english and <unk> literature at columbia university + <unk> corp. said its <unk> subsidiary completed the previously announced sale of its air separation plant and related assets in <unk> wis. to aga gas inc. cleveland + the price was n't disclosed + the transaction is part of <unk> 's continuing program to shed <unk> 's industrial gas interests and expand the subsidiary 's propane business + since june <unk> has <unk> more than $ N million from industrial gas <unk> and reinvested more than $ N million to acquire three propane distributors + <unk> is a gas and electric utility and distributes propane nationally through its <unk> subsidiary + <unk> <unk> who represents the soviet airline aeroflot here has some <unk> that are wild even by the current standards of perestroika + in his office <unk> the runway of shannon airport mr. <unk> <unk> throws out what he calls just ideas + first he suggests <unk> group ltd. the international aircraft leasing company based in ireland could lease some of its boeing <unk> to the soviet airline + then aer <unk> the irish flag carrier could teach aeroflot pilots to fly the <unk> and the fleet could be based here at shannon airport + that 's not all he says + aer <unk> the irish airport authority could build a cargo terminal in the soviet union + aeroflot could lease some of its cargo planes to aer <unk> through <unk> for a joint-venture cargo airline + and then there is his notion of an <unk> charter airline to ferry <unk> to los angeles via shannon + have the freedoms of glasnost gone to mr. <unk> 's head + hardly + the <unk> aviation connection is alive and well here at shannon airport + <unk> is indeed talking about leasing western planes to aeroflot and even about buying <unk> <unk> <unk> + aer <unk> is in discussions with the soviet carrier about a cargo venture and other possibilities + aer <unk> already has so many ventures with aeroflot that its chief executive is studying russian + unlikely as it may seem tiny politically neutral ireland has <unk> the mighty soviet airline bureaucracy + and as aeroflot struggles to boost its service standards upgrade its fleet and pursue commercial opportunities the irish aviation industry seems poised to benefit + irish and soviet people are similar says mr. <unk> + they look the same + they 're very friendly + moreover he says irish companies are small but <unk> + we have to study their experience very well he says + we must find any way to get business + the two groups have been working together since the late 1970s long before soviet joint ventures were the rage in the west + aeroflot carried about N million passengers last year and shannon airport the airline 's largest transit airport outside the soviet union saw N aeroflot flights and N passengers pass through + an apartment complex down the road is the <unk> and staging area for more than N aeroflot pilots and flight attendants + the airport 's biggest supplier of aircraft fuel is the soviet union + <unk> from the <unk> port of <unk> each year unload N million gallons of fuel into a special tank farm at the airport + what aeroflot does n't pour into its own <unk> <unk> is <unk> to the airport authority which <unk> it to N western carriers including air france trans world airlines and pakistan international airlines + aeroflot thus pays its landing fees <unk> and <unk> bills with fuel preserving its hard currency + that is n't all + last year the irish airport authority in a joint venture with aeroflot opened four <unk> duty-free shops at moscow 's <unk> airport + aer <unk> now manages duty-free sales on all aeroflot international flights out of moscow + duty-free shops in <unk> 's <unk> airport opened in july and <unk> shops in <unk> hotels and on the <unk> <unk> are coming soon + aer <unk> is talking about similar joint ventures in <unk> and in <unk> a black sea resort and even has a <unk> project cooking with the <unk> city of <unk> + aeroflot 's international fleet of N planes is being <unk> and <unk> at shannon airport + thanks to a new <unk> agreement and the ability of irish travel agents to issue aeroflot tickets tourists here are taking advantage of aeroflot 's reasonable prices to board flights in shannon for holidays in <unk> <unk> and mexico city + the <unk> fare to <unk> is N irish punts $ N + jamaica costs N punts + a formal blessing of sorts was <unk> on this friendship in april when mikhail and <unk> gorbachev stopped here for talks with irish prime minister charles <unk> + new trade accords were signed + it all started with geography + when it opened in N shannon was the first <unk> in europe for <unk> airplanes flying from north america + advances in aircraft fuel efficiency over the years made a shannon stop unnecessary for most western air fleets but aeroflot still flies inefficient <unk> that ca n't make it from moscow to managua on one <unk> + as a result ireland did n't <unk> the soviets after they shot down a korean air lines jetliner over the sea of japan in N though it suspended direct <unk> flights for two months + in fact aer <unk> started <unk> russians from shannon to new york when washington stripped aeroflot of its u.s. landing rights + today aer <unk> is making a <unk> of money from its soviet friendship + and with those contacts in place it could be relatively simple to add aer <unk> and <unk> to the team + then perhaps mr. <unk> 's ideas would n't sound like so much <unk> + britain 's industrial production rose N N in august from july and was up N N from august N according to provisional data from the central statistical office + output in the energy sector which can vary greatly with swings in the oil market rose N N in august from may but was down N N from a year earlier + the latest figures compare with july 's N N <unk> rise and N N year-to-year fall + when <unk> corp. begins shipping steel from the world 's first <unk> plant this month it will begin testing the competitive <unk> of its giant competitors + the new technology which creates a very thin piece of steel <unk> reduces the costs of making flat-rolled sheets + an <unk> kenneth iverson <unk> 's chairman says the company 's plant eventually will make a ton of steel in N man hours compared with four to six man hours at a conventional mill + we 've had the russians and chinese and people from india visiting us mr. iverson <unk> + everyone in the world is watching us very closely + especially his neighbors the major u.s. steelmakers + already usx corp. and armco inc. are studying <unk> 's technology to see if they can adopt it + says the chief executive officer of a major midwest steel company it 's damn worrisome + the <unk> steel industry is about to be turned <unk> by a 1990s technology revolution + new efficient and sophisticated processes make it easier for smaller less <unk> companies to make steel at a fraction of what big steel paid decades ago + it also enables minimills finally to get a <unk> in the flat-rolled steel market the major steelmakers ' largest most <unk> and until now <unk> market + but such <unk> technology is only the beginning + eager engineers <unk> <unk> and direct casting which by the end of the 1990s will enable production without coke <unk> and blast <unk> + those massive structures while <unk> cost and environmental headaches effectively locked out all but <unk> giants from <unk> + there 's a revolution ahead of us that will ultimately change the way we market and distribute steel says william dennis vice president manufacturing and technology for the american iron <unk> and steel institute + it is n't that major steelmakers have <unk> ignored high technology + in fact they 've spent billions of dollars to boost the percentage of <unk> cast steel to N N in N from N N five years before + moreover their balance sheets are rich with diversity their old plants <unk> and work forces lean + but that wo n't <unk> + it 's no longer enough to beat the guy down the street + you have to beat everyone around the world says mr. dennis + he wants to see steelmakers more involved in computers and <unk> intelligence + the problem they 're <unk> with huge plants that require costly maintenance + and try <unk> new dollars free in a market that is softening hurt by a strong dollar and concerned about overcapacity the industry 's <unk> <unk> + the technology revolution is going to be very threatening to established producers says peter marcus an analyst with painewebber inc + they 've got too much invested in the old stuff and they ca n't get their workers to be flexible + no one expects minimills to <unk> major integrated steelmakers who remain the <unk> <unk> of <unk> steel used for autos and refrigerators + <unk> 's plant in <unk> ind. ultimately will produce only one million tons annually a drop in the <unk> flat-rolled steel <unk> and it will be years before such plants can compete in the <unk> market + still flat-rolled is the steel industry 's bread and butter representing about half of the N million tons of steel expected to be shipped this year + moreover the process is n't without its headaches + because all operations are connected one equipment failure forces a complete plant shutdown + on some days the <unk> plant does n't produce anything + at this point the <unk> capacity wo n't make a great <unk> in the integrated market but it does challenge them to develop new markets says james mccall vice president materials at <unk> a technology and <unk> giant based in columbus ohio + indeed with demand for steel not growing fast enough to absorb capacity steelmakers will have to change the way they do business + in the past says armco 's chief economist john <unk> steelmakers made a product and set it out on the <unk> <unk> + we said we 've got a product if you want it you can buy it he says adding now we 're figuring out what people need and are going back to make it + armco 's sales representatives visit the general motors corp. 's <unk> assembly plant in kansas city mo. two or three days a week + when they determined that gm needed parts more quickly armco convinced a steel service center to build a processing plant nearby so shipments could be delivered within N minutes + <unk> such relationships with major clients car and <unk> makers is a means of survival especially when those key clients are relying on a smaller pool of producers and <unk> with plastic and aluminum makers + for example when detroit began talking about <unk> cars the american iron and steel institute began a major lobbying effort to show auto makers how they could use steel more efficiently by simply <unk> how a car door is assembled + but steelmakers must also find new markets + after letting <unk> take the recycling lead a group of the nation 's largest steelmakers started a recycling institute to promote steel cans to an environmentally <unk> nation + <unk> 's mr. mccall thinks steelmakers should concentrate more on construction + weirton steel corp. weirton w. va. for example is touting to homeowners fashionable steel doors with <unk> glass <unk> as a secure and <unk> alternative to wooden or aluminum ones + other steelmakers <unk> steel <unk> covering <unk> + still others are looking at overseas markets + usx is <unk> drilling pipe to <unk> soviet union + this year the nation 's largest steelmaker <unk> its overseas sales operation + producers also are trying to <unk> by concentrating on <unk> output such as coated and <unk> products which remain beyond the reach of minimills + almost all <unk> programs announced by major steelmakers within the past year involve building <unk> lines used to produce steel for such products as household appliances and car doors + but unfortunately that segment is much smaller than the bread-and-butter flat-rolled steel + it 's like everyone climbing out of the <unk> ii and getting into a <unk> says john jacobson an analyst with <unk> consultants + after a while someone has to go over the side + although he does n't expect any <unk> he does see more plants being sold or closed + robert crandall with the <unk> institute agrees + unless there is an enormous rate of economic growth or a further drop in the dollar it 's unlikely that consumption of u.s. produced steel will grow sufficiently to offset the growth of minimills + not to mention the <unk> of imports + japanese and european steelmakers which have led the recent technology developments are <unk> awaiting the lifting of trade restraints in N + moreover the u.s. can expect more competition from low-cost producing pacific <unk> and latin american countries + a taiwanese steelmaker recently announced plans to build a <unk> plant + people think of the steel business as an old and mundane <unk> business says mr. iverson + they 're dead wrong + \* usx ltv bethlehem inland armco national steel + \*\* projected + polaroid corp. 's <unk> damages case against eastman kodak co. one of the highest stakes corporate trials ever is getting <unk> attention on wall street + after N days of <unk> testimony in federal court in boston the trial is being all but ignored by analysts and patent attorneys + most have read the pre-trial documents however and estimate kodak will be ordered to pay $ N billion to $ N billion for <unk> on seven polaroid patents + that may be the largest patent award ever but it is well below the $ N billion polaroid seeks + the highest patent damage award to date was in N when smith international inc. was ordered to pay $ N million to baker hughes inc. for <unk> on a patent on an oil drilling bit seal + the two companies later agreed to settle for $ N million + few analysts think it is worth their time to <unk> through the polaroid trial testimony + it 's like <unk> for gold outside of grand central station + you might find something but the chances are low said michael <unk> an analyst at wertheim schroder & co + and eugene glazer an analyst at dean witter reynolds inc. said if you hired an attorney to be there all the time and give you a prediction of the eventual award i would be willing to bet that he would be off by a lot + a <unk> trial in the early 1980s determined that kodak based in rochester n.y. infringed on patents of polaroid of cambridge mass + the main issues remaining are how to calculate damages and whether the infringement was willful and <unk> + if so the damages could be tripled + two analysts who have read the <unk> david nelson of shearson lehman hutton inc. and <unk> d. <unk> a litigation analyst at <unk> simpson & co. think judge a. david <unk> will decide in kodak 's favor on the willful and <unk> issue + mr. <unk> said testimony by kodak 's patent counsel francis t. carr of <unk> & <unk> showed that he worked with kodak <unk> from the outset of the project in an effort to avoid infringement + carr told kodak on many occasions to avoid various features because of polaroid 's patent positions and kodak followed his advice in every instance mr. <unk> said + but irving <unk> a patent expert at george mason university school of law who is familiar with the case said the fact that seven patents were infringed suggests that infringement was willful + it 's difficult to be that consistently wrong + observers also wonder whether judge <unk> will use the <unk> method of determining damages which polaroid favors because it would result in a larger award or the reasonable royalty method + polaroid claims it could have manufactured and sold all the instant cameras and film sold by kodak if kodak had n't entered the market + moreover polaroid contends it could have sold them at a higher price and thus made higher profits because it would n't have been forced to match kodak 's lower prices + each side has called a harvard business school professor to testify on that issue + kodak hired robert <unk> and polaroid brought in robert j. <unk> + there 's nothing that says that people at harvard business school have to agree with each other said mr. <unk> + testimony is expected to continue until early december + a decision is n't expected until some time next year + international business machines corp. said earnings tumbled N N in the third quarter even a bit further than expected <unk> the outlook doubtful for the next few quarters + the main reason was a delay in shipment of new high-end disk drives a business that accounts for some N N of ibm 's $ N billion of annual revenue + ibm which <unk> the poor results three weeks ago also cited an increase in its leasing business which tends to lock in business long-term but cut revenue in the near term + in addition ibm noted that the stronger dollar has cut the value of overseas revenue and earnings when they are translated into dollars + earnings fell to $ N million or $ N a share somewhat below securities analysts ' revised expectations of around $ N a share + that compared with the year-earlier $ N billion or $ N a share which was inflated by a <unk> gain from the sale of some mci communications corp. stock and by an unspecified amount from a payment by fujitsu ltd. relating to a software dispute + revenue climbed N N to $ N billion from $ N billion + ibm armonk n.y. remained upbeat + the computer giant whose u.s. results have been dismal for years noted that revenue rose again in the u.s. in the third quarter following an increase in the second period + the company said in a statement that demand for ibm products and services continues to be good world-wide + we do not see anything in the fundamentals of our business that would cause us to change our strategy of investing for profitable growth + securities analysts however remained <unk> + i think N will be another <unk> year said steve <unk> of first boston + jay stevens of dean witter actually cut his per-share earnings estimate to $ N from $ N for N and to $ N from $ N in N because he decided sales would be even weaker than he had expected + both estimates would mark declines from the N net of $ N billion or $ N a share which itself was well below the record ibm set in N + mr. stevens said he kept a <unk> recommendation on the stock only because all the damage has been done + he said the stock has n't traded below N N times book value over the past N years which at the moment <unk> to a stock price of $ N + the stock closed yesterday at $ N a share up just $ N in composite trading on the new york stock exchange as the market surged + analysts worry that the disk-drive and leasing problems will last at least through the first quarter + a key part of the question is how soon does this disk-drive come and how soon does production <unk> up said steve cohen at <unk> financial group + and the input i 've had from customers is that it still could be a while + on leasing bob <unk> at <unk> research said he thinks ibm has hurt itself <unk> + he said ibm has priced its leases aggressively thinking that would help win business + but he said ibm would have won the business anyway as a sale to a third party that would have then leased the equipment to the customer + he said ibm has not only hurt its short-term revenue outlook but has also been losing money on its leases + bob <unk> executive vice president of marketing at <unk> inc. a huge leasing firm said to put it mildly ibm credit has been doing some of the worst economic deals of any leasing company we have ever seen + ibm is expected to get a boost soon when it <unk> some new versions of its mainframes + but the basic technology in the line is almost five years old which means it is long in the <unk> and competitors are rolling out strong products of their own + ibm is gaining momentum in the personal-computer market and is expected to introduce some impressive workstations early next year + but it 's hard to squeeze much profit out of the personal-computer business these days and the workstation market while important is too small to rely on for much growth + the disk drives will <unk> sell well when they finally become available + but the <unk> ibm 's highly successful <unk> line is losing its momentum and some analysts said sales could even decline in the fourth quarter + in addition ibm 's growth in software in the third quarter was just N N well below historical levels even when adjusted to reflect last year 's payment from fujitsu and the stronger dollar + and expenses up N N in the quarter have stayed <unk> high + in the nine months ibm earned $ N billion or $ N a share down N N from the year-earlier $ N billion or $ N a share + revenue increased N N to $ N billion from $ N billion + pepsico inc. 's chairman said he is more than comfortable with analysts ' estimates that third-quarter earnings rose to at least N cents to $ N a share from N cents the year earlier + d. wayne calloway also chief executive officer of the company indicated that he expects analysts to raise their forecasts for N after the company releases its earnings today + so far analysts have said they are looking for $ N to $ N a share + after today 's announcement that range could increase to $ N to $ N a share + the official said he also would be comfortable with that new range + in N the soft-drink giant earned $ N a share + results for N will include about N cents a share from the <unk> effects of snack-food and bottling company acquisitions + in composite trading on the new york stock exchange the company closed yesterday at $ N a share up $ N + the company said third-quarter sales are expected to increase N N from $ N billion of last year 's third quarter + domestic soft-drink <unk> case sales are estimated to have risen only N N in the third quarter well below the N N to N N growth of recent years but about in line with the rest of the soft-drink industry + mr. calloway blamed the slower volume on <unk> weather a <unk> of new products in the industry and to a much lesser extent pricing + pepsico said its soft-drink prices were about N N higher in the quarter + mr. calloway also noted that soft-drink volume rose a hefty N N in last year 's third quarter making the comparison more difficult + international soft-drink volume was up about N N + snack-food <unk> increased a strong N N in the third quarter while domestic profit increased in double <unk> mr. calloway said + excluding the british snack-food business acquired in july snack-food international <unk> jumped N N with sales strong in spain mexico and brazil + total snack-food profit rose N N + led by pizza hut and <unk> bell restaurant earnings increased about N N in the third quarter on a N N sales increase + <unk> sales for pizza hut rose about N N while <unk> bell 's increased N N as the chain continues to benefit from its <unk> strategy + <unk> bell has turned around declining customer counts by permanently lowering the price of its <unk> + same <unk> for kentucky fried chicken which has struggled with increased competition in the fast-food chicken market and a lack of new products rose only N N + the operation which has been slow to respond to consumers ' shifting <unk> away from fried foods has been developing a <unk> product that may be introduced nationally at the end of next year + the new product has performed well in a market test in las vegas nev. mr. calloway said + after a four-year $ N billion acquisition binge that brought a major soft-drink company soda <unk> a fast-food chain and an overseas snack-food giant to pepsi mr. calloway said he does n't expect any major acquisition in the next year or so + but you never can tell he added you have to take advantage of opportunities + president bush chose martin <unk> a longtime friend from texas to be chairman of the federal energy regulatory commission + mr. <unk> would succeed <unk> <unk> who is resigning + the white house said ms. <unk> a chicago <unk> who previously held posts at the energy department and ferc is leaving to become a vice president of first chicago corp + mr. <unk> an attorney in midland texas has been <unk> at the interior department + he met mr. bush in the 1950s when the president was a young oil man in midland and mr. <unk> was a lawyer for an oil firm + the ferc is a <unk> commission that <unk> billions of dollars of interstate wholesale energy transactions + mr. <unk> 's appointment is subject to confirmation by the senate + administration officials said a date for ms. <unk> 's departure has n't been set + california real estate investment corp. said its directors declared a dividend of five cents per class a common stock payable nov. N to stock of record oct. N + the dividend represents the balance of its regular quarterly payout of N cents a share of which half was paid july N in a final distribution prior to its merger with <unk> real estate investment corp. also in july + the company said it hopes to resume its schedule of regular quarterly dividends at the end of this year + hydro-quebec said it notified central maine power co. it will cancel a $ N billion contract to supply electricity to the maine utility + the <unk> owned utility said it is <unk> up the deal because the contract 's objectives ca n't be <unk> + hydro-quebec said maine regulators ' refusal to approve the contract earlier this year halted work on transmission lines and stopped negotiations for resale of electricity carried through maine to other utilities + it would now be <unk> impossible to begin deliveries in N a hydro-quebec official said + the contract was to run from N to N + under the contract hydro-quebec was to supply N <unk> of power to central maine power starting in N N <unk> starting in N and N <unk> starting in + hydro-quebec said maine regulators ' refusal to approve the contract means central maine power has lost its place in line + we wo n't sign any new contracts with deliveries beginning earlier than N the hydro-quebec official said + he said hydro-quebec already has some customers in mind for the power that was to be delivered to maine + nothing has happened since we signed the contract to undermine our conviction that hydro-quebec was the <unk> most environmentally acceptable choice for meeting a part of our customers ' energy needs through the year N said central maine senior vice president donald f. kelly + central maine said it is evaluating many energy options to make up for the lost future power including new energy generation and management proposals from new england and possibly new canadian purchases + chicago options traders were among the big victims of friday 's plunging stock market including one small firm that required an emergency $ N million bailout + while monday 's rebounding markets helped other investors recoup losses many options customers and professional traders in stock-index options and the options on takeover stocks were left with multimillion-dollar losses traders here and in new york said + options traders were hurt worse than others on friday because of the highly volatile nature of options which often rise or fall in value several times the amount of the price change in the individual stock or index of stocks on which they are based + thus options traders friday were stuck with losses that also were several times larger than those suffered by many stock traders in new york + jeffrey miller of miller <unk> <unk> & co. said that given the high degree of leverage in the options market it is very easy for these guys to get wiped out + that may just be the nature of these highly leveraged little creatures + an options contract gives the holder the right to buy call or sell put a specific amount of stock or in this case the value of a stock index based on a <unk> price within a given time period + options traders who in return for a small fee or premium had previously sold put options on stocks or stock indexes were forced on friday to buy those contracts back at the previously agreed prices which were substantially above those in the market as it was falling + they then had no choice in many cases but to sell the contracts at prevailing prices in most cases at a substantial loss + the latest round of losses is likely to be a serious blow to the chicago board options exchange which has never fully recovered from the <unk> of black monday when investors fled the market because of huge losses + making matters worse was the fact that late friday afternoon the cboe halted stock-index options trading in step with the chicago mercantile exchange 's halt in stock-index futures + but while the merc reopened a half hour later the cboe remained closed leaving many options traders unable to make trades that might have reduced the losses + cboe chairman <unk> duke <unk> said that unlike the futures market the options exchange has to open in a <unk> that allows each different options series to trade + exchange officials <unk> that they would n't have been able to make such a <unk> with the time remaining friday afternoon and with the stock-index futures on the verge of closing for a second and final time the cboe <unk> that its best course was to remain closed + the damage was so bad at fossett corp. an options trading firm here that it was forced to transfer its accounts to first options of chicago a unit of continental bank corp. as a result of options trading losses + <unk> so far is the only member of a financial exchange to be forced to be taken over by another firm as a result of friday 's rout + fossett still had several million dollars in capital left after friday 's close of trading but not enough that regulators worried about another potential market plunge yesterday would let it reopen for trading options exchange officials said + thus in an unprecedented arrangement <unk> the <unk> of the transfer the cboe the american stock exchange and the options clearing corp. as well as the firm 's owner stephen fossett put up a total of $ N million to guarantee the customer positions being transferred to the bank holding company subsidiary in case the market plunged again yesterday + s. <unk> <unk> iii vice chairman of continental bank first options ' parent company said the firm took on about N accounts formerly held by fossett almost all of them <unk> to professional floor traders + steve and his firm were still worth a lot of money mr. <unk> said + a package of credit support was put together including the assets of steve and his firm + the bailout was <unk> together over the weekend with officials from the federal reserve board securities and exchange commission comptroller of the currency and treasury as well as the options exchanges + it was great to have the luxury of time mr. <unk> said + at one point an options industry official had to talk the federal reserve bank of chicago 's night <unk> into giving him the home phone number of <unk> <unk> chicago fed president + first options did n't have to put any money into the bailout + yesterday 's rally in the stock futures and options markets led cboe and amex officials to conclude that the $ N million in guarantees almost certainly wo n't need to be tapped by first options + the fossett firm had some losses and liquidity problems during the october N crash as well mr. <unk> said + a federal official said that continental bank worked with securities and banking regulators over the weekend to fashion the fossett bailout but that conditions were n't <unk> by those agencies + it was their business decision the official said + officials at options clearing corp. which processes all options trades for u.s. exchanges said that the $ N million guarantee was unprecedented but was necessary to help insure the integrity of the options markets + it was an extraordinary situation that needed extraordinary steps said paul stevens <unk> president and chief operating officer + mr. stevens declined to give the specific contributions to the $ N million guarantee from each participant + but cboe and amex officials said that options clearing corp. contributed $ N million to the guarantee the cboe put up $ N million the amex added $ N million and $ N million came from mr. fossett 's own assets + mr. fossett could n't be reached to comment + <unk> foster takes off her <unk> <unk> herself on a <unk> chair and gently <unk> forward + with a <unk> tape playing <unk> in the background the <unk> hands of <unk> <unk> begin to work on ms. foster 's neck and <unk> + it 's like an <unk> in this room ms. foster <unk> + the room in question is the directors ' <unk> of <unk> <unk> co. N floors above the <unk> of pittsburgh + there amid oil paintings and marble tables massages are <unk> every wednesday + on days that i 'm really busy says ms. foster who works in public relations for the company it seems <unk> to take time off for a massage + although such sessions may never replace coffee breaks on-site massage as it is known in the trade is certainly <unk> corporate america + in some companies middle managers <unk> massage <unk> into the office fearful that <unk> executives wo n't approve + ms. foster 's <unk> is nothing like the <unk> <unk> <unk> enjoyed by <unk> visitors + nor does it at all resemble despite what some executives think the more intimate variety offered at specialty <unk> in bad parts of town + on the contrary office <unk> usually take place in <unk> <unk> conference rooms where <unk> employees relax in specially designed chairs fully <unk> + the massages last N minutes and typically cost about $ N + some companies including <unk> even pay part of the fee + ms. <unk> has been seeing some N clients a visit since the program was started at <unk> last year + anthony <unk> <unk> the company 's chairman <unk> by her firm touch saying regular massages are a <unk> for his old football injuries + massage advocates say that <unk> the head <unk> neck and back can go a long way toward easing tension and improving morale + they also insist that <unk> is a basic need as powerful as the need for food or sleep and that the office is as good a place as any to do it + the blood flows to your head you feel <unk> and you do n't feel tension around the head or neck says <unk> <unk> an operations supervisor at the social security office in grand <unk> mich. where massages began last month + when you leave the room after your massage people say you look like you 're <unk> + adds <unk> <unk> the <unk> <unk> who <unk> her trade in the grand <unk> office they fall in love with my hands + not everyone however is at ease with office massage + three years ago the internal revenue service 's office in san jose calif. opened its doors to on-site massage + and even though employees paid the bill taxpayers <unk> + sometimes with the release of stress you hear <unk> and <unk> coming out of the room explains morgan banks the agency 's health specialist + and you ca n't have taxpayers coming into an audit hearing <unk> and <unk> + last month the complaints <unk> and the massages ended + now we 're looking for a room with <unk> walls ms. banks says + massage also has an image problem to contend with + some <unk> have tried to get around this by calling themselves <unk> and describing their office visits as <unk> breaks + but massage no matter how <unk> is still associated in many minds with <unk> fronts for <unk> and that makes some executives nervous + last year the research and development division of weyerhaeuser co. the large <unk> concern invited a <unk> to its <unk> wash. offices + phil <unk> a software engineer was an eager customer + you build up a lot of tension working at a terminal all day he says + but after about eight months the vice president of the division ed <unk> learned about the sessions and brought them to a halt + mr. <unk> says his only beef was that the massages were being given in a company conference room the department 's <unk> health facility would have been fine + in my view massages should be managed with an appropriate <unk> of males and <unk> around he says + given such attitudes some corporate <unk> prefer to go about their business quietly + russell <unk> of park <unk> n.j. says he has been working for the past year at a huge chemical and manufacturing concern in new york <unk> to the company 's executives + he visits the same department every two or three weeks + his massage chair is kept in a <unk> and a secretary <unk> him past security + this is common with a lot of large companies says mr. <unk> who worked for american telephone & telegraph co. for N years before choosing his current trade + managers he contends are afraid how they 're going to look in the eyes of their <unk> + my vision is to change human <unk> <unk> touch + my attitude is let 's come out of the <unk> + occasionally all that 's needed is a little <unk> + <unk> <unk> a st. louis <unk> won over officials at emerson electric co. a maker of electrical and electronic equipment by providing documents and other articles <unk> the <unk> benefits of massage + she notes that she also <unk> <unk> during her weekly visits + i pull my hair back wear a little makeup and look corporate says ms. <unk> who has been visiting emerson since january + if i go in there as i normally dress they 'd ask who is this <unk> + the <unk> father of on-site massage is david palmer a <unk> san francisco <unk> whose mission is to save the <unk> <unk> + to help do this mr. palmer developed a portable massage chair three years ago that he hopes will bring structured <unk> into mainstream america + the culture is not ready to take off its clothes lie down and be touched for an hour for $ N he says + the idea is to keep the clothes on and to keep people <unk> + the chair is a way to package massage + sitting in one of mr. palmer 's chairs which cost $ N and have since been <unk> by others is a bit like <unk> a <unk> + customers lean forward rest their <unk> on side supports and <unk> their face in <unk> on the back of the chair + ms. <unk> the grand <unk> <unk> says she has heard the <unk> <unk> compared to something out of the spanish <unk> + mr. palmer who serves as president of the on-site massage association and writes an industry newsletter says some N practitioners out of about N certified <unk> across the country now use massage chairs in the workplace as well as on street corners in airports and <unk> and at <unk> and other <unk> where <unk> people can be found + <unk> <unk> a <unk> in <unk> colo. had a scary experience while <unk> a man in a <unk> supermarket as part of a store promotion + three minutes into the massage the man <unk> up began shaking and turned red + <unk> were called + a week later the man told mr. <unk> he had suffered a mild heart attack unrelated to the massage + it was a powerful point in my career says the <unk> mr. <unk> who has since taken out a $ N million liability policy for his business + but he pulled through and after the <unk> left there were still six people in line waiting for a massage + the next woman was older and i was afraid to touch her + but it 's like falling off a horse and getting back on + despite the number of fans that office massage has won some <unk> look down on it arguing that naked <unk> <unk> are the only way to go + linda <unk> who does <unk> work in pittsburgh says that while on-site massage is better than nothing tired workers should realize it is only the tip of the <unk> + whole areas of their bodies are neglected she says adding that clothes <unk> the experience + there 's nothing like skin to skin + in what is believed to be the first cancellation of a loan to china since the june N killings in beijing an international bank syndicate has terminated a $ N million credit for a shanghai property project + the syndicate led by <unk> asia ltd. agreed last november to provide the loan to asia development corp. a u.s. property developer + but several weeks ago in the wake of the beijing killings the loan was canceled according to bankers and executives close to the project + asia development and <unk> declined to comment on the move + lenders had doubts about the project even before june N but the harsh crackdown which caused many businesses to <unk> their china transactions gave the banks the out they wanted says an official close to the shanghai venture + the decision to cancel the loan <unk> the tough attitude bankers have taken toward china since june N + while some commercial lending has resumed international lenders remain nervous about china 's economic troubles and foreign debt $ N billion at the end of N + many loans are being <unk> especially those tied to the hotel sector which has been hit hard by a <unk> N tourism slump + many bankers view <unk> loans as particularly risky + the canceled shanghai loan leaves asia development a small concern <unk> with a <unk> <unk> apartment building and heavy debts + the company owes $ N million to the <unk> on group the project 's hong kong contractor and a significant though unspecified amount in legal fees to <unk> brothers a u.s. law firm the sources say + the project known as lotus mansion has been mired in controversy + when the loan agreement was announced it was hailed as one of the first western-style financing transactions ever used in china + unlike most loans to china there was no chinese <unk> + instead the banks secured a promise from state-owned bank of communications that it would lend asia development the entire $ N million at maturity to finance repayment of the original borrowing + the loan was to have <unk> in just two to three years as soon as construction was completed + but in a letter sent in august to asia development <unk> said the loan was terminated because the developer had failed to deliver adequate financial data and pay certain fees to the <unk> committee on time according to officials close to the project + creditors involved in the project contend however that the termination actually had nothing to do with these technical violations + instead the creditors say the loan fell victim to nervousness about china 's political turmoil as well as to concern about the loan 's security + the bank syndicate is made up mostly of european banks but it includes china 's state-owned <unk> industrial bank + the N banks in the syndicate sustained no monetary losses because none of the credit facility had been drawn down + k mart corp. agreed to acquire pace membership warehouse inc. for $ N a share or $ N million in a move to expand its presence in the rapidly growing <unk> business + the proposed merger comes as k mart 's profit is declining and sales at its core discount stores are rising more slowly than at such competitors as <unk> stores inc + k mart based in <unk> mich. recently said net income would fall for the third consecutive quarter after a N N drop in the first half of its current fiscal year + the membership <unk> concept has great potential the company 's chairman joseph e. <unk> said in a statement + warehouse clubs typically carry general merchandise and food products which they sell for close to wholesale prices in <unk> stores + shoppers many of whom operate small businesses pay annual membership fees which provide an income base for the stores + k mart tested the <unk> sector last year with its acquisition of a N N interest in <unk> inc + but the <unk> chain which operates as a joint venture between k mart and shv holdings n.v. of the netherlands has only six stores and annual sales that one analyst estimated at about $ N million + <unk> pace based in <unk> colo. operates N <unk> stores + the company had losses for several years before turning profitable in fiscal N + in the year ended jan. N pace <unk> up profit of $ N million or N cents a share after a tax-loss carry-forward on sales of $ N billion and analysts expect its results to continue to improve + the company turned the corner fairly recently in profitability said <unk> <unk> of painewebber inc. who had been forecasting a N N jump in pace 's net income from operations this year and another N N increase next year + warehouse productivity is really beginning to take off + but some analysts contend k mart has agreed to pay too much for pace + even if you look at it as a turnaround situation it 's expensive said wayne <unk> of prudential-bache securities inc + in my opinion you would only pay that kind of price if you were getting a premier player in the industry + ms. <unk> of painewebber raised a more fundamental question about the deal + if k mart ca n't get its act together in discounting why is it spending time worrying about other growing markets + she said i would say k mart 's number one job is to address its market-share loss in discount stores which longer-term will lead to improved profit margins + at that point perhaps diversification would be appropriate + but k mart 's mr. <unk> is intent on pushing the company into new retail businesses + for instance k mart is opening big food and general merchandise stores called <unk> and <unk> stores specializing in office products and sporting goods + it also operates <unk> pay less drug stores and builders square home improvement stores + in composite trading on the new york stock exchange k mart closed yesterday at $ N a share up N cents + pace rose $ N to close at $ N a share in national over-the-counter trading + a k mart spokesman said the acquisition would be financed with short-term borrowings + under terms of the agreement a k mart subsidiary will soon make a tender offer for pace shares + among the conditions of the offer is that pace shareholders tender a majority of the company 's shares outstanding + the companies said pace would ill continue to operate under its present management + g. william <unk> president of <unk> stations was named chief executive officer of the unit of this media company effective jan. N + he will succeed joel <unk> who will remain a vice president of the company and continue to represent <unk> stations in several industry organizations the company said + literally + traders nervously watching their quotron <unk> machines yesterday morning were stunned to see the dow jones industrial average plummet N points in seconds + a minute later it soared N points then <unk> back down N points N below friday 's close + it was crazy said neil <unk> general partner of <unk> capital corp + it was like flying without a pilot in the front of the plane + but those who said this ca n't be happening were right + the <unk> were wrong + quotron systems inc. a citicorp unit blamed the <unk> <unk> on a timing problem in our software caused by the enormous early volume about N million shares in the first hour of new york stock exchange trading + the prices of the individual stocks that make up the average were correct quotron said but the average was wrong + meanwhile there was an awful lot of confusion + at about N a.m. on the over-the-counter trading desk at a major brokerage firm a veteran trader who buys and sells some of the most active stocks looked at a senior official and asked what 's going on + is the market up or down + at the time quotron was reporting that the industrial average was down N points + in fact it was up N + <unk> stark a vice president who heads the trading desk at dillon read capital corp. said that once she figured out the quotron numbers were wrong she called brokers to tell them + it 's been kind of <unk> to say the least she said + to <unk> matters further when ual corp. stock finally opened on the new york stock exchange at N a.m. the price was listed at $ N a share up about $ N from friday in fact its true price was $ N down $ N + that was the new york stock exchange 's <unk> + a spokesman cited a technical error and declined to elaborate + and there were other <unk> + when the market opened at N a.m. est a reporter for the reuters <unk> <unk> the industrial average 's drop as a N N decline when it really was down N N + it was a case of human error which we found almost immediately and corrected a spokesman for reuter in new york said + meanwhile some currency traders at west german banks in frankfurt said they sold dollars on the news and had to buy them back later at higher prices + but it was the quotron problems that had <unk> effects + dillon read 's ms. stark said in early afternoon that she was still <unk> prices and other data as subject to <unk> and she said portfolio managers continued to question the numbers they saw on the screen + it was the second time in less than a week that quotron has had problems <unk> the industrial average + at the start of trading last wednesday the average appeared to plunge more than N points + actually it was down only a few points at the time + quotron said that <unk> which lasted nine minutes resulted from a failure to adjust for a <unk> stock split at philip morris <unk> + a quotron spokeswoman said recent software changes may have contributed to yesterday 's problems + she said quotron switched to a backup system until the problems were corrected + today of all days she <unk> + the eyes of the world were watching us + steven f. <unk> was named a senior vice president of this graphics equipment company + he retains his current positions as chief strategic officer of am international and president of am ventures + houston attorney dale friend representing a plaintiff in a damage suit says he has negotiated a settlement that will strike a blow for his client + literally + it turns out mr. friend 's client <unk> parks of cincinnati did n't like the way defense attorney tom alexander acted during the legal proceedings + so she has agreed to <unk> monetary damages against mr. alexander 's client in return for the right to <unk> the attorney + ms. parks 's mother also gets to <unk> mr. alexander + so does mr. friend and his law partner <unk> <unk> + the bizarre arrangement grows out of mr. alexander 's representation of <unk> construction co. one of several defendants in a <unk> death lawsuit brought by ms. parks the widow of a construction worker killed in january N while working on a new houston convention center + last month mr. friend says mr. alexander 's associate agreed that <unk> would pay $ N as part of an overall settlement + but mr. alexander <unk> the deal at the last minute <unk> the plaintiff 's side + i never agreed to it mr. alexander says adding that it 's not necessary to pay these <unk> settlements + when ms. parks and her mother heard about what had happened mr. friend says they <unk> that they would like to give mr. alexander a good <unk> + mr. friend says he passed that along to his adversary and soon they were talking about the ground rules under which <unk> could keep its money and the plaintiffs could take a shot at mr. alexander + although time and place have yet to be determined some details are in place + mr. friend says he agreed to strike mr. alexander above the belt + ms. parks and her mother indicated they want to catch him <unk> from behind he says + mr. alexander for his part insisted that the <unk> ca n't <unk> their <unk> rights to anyone else ca n't use a blunt instrument and ca n't take a running start + mr. alexander says he <unk> the agreement which has n't been submitted to a judge as something of a joke + however he acknowledges they have the option of taking a <unk> at me if they really want to + mr. friend says his side is dead serious + although they do n't <unk> delivering any <unk> <unk> he says that mr. alexander will be asked to sign a release from liability just in case + after two years of drought it <unk> money in the stock-index futures markets yesterday + as financial markets rebounded trading volume in the chicago mercantile exchange 's huge standard & poor 's N stock-index futures pit soared reaching <unk> levels for the first time since october N + the sudden influx of liquidity enabled several traders to reap <unk> <unk> in a matter of minutes as prices soared traders said + guys were <unk> money in there today said john <unk> a futures broker for elders futures inc. in chicago + the s&p N futures contract which moves in <unk> of an index point under normal conditions jumped two to three points in seconds early yesterday after an initial downturn then moved strongly higher the rest of the day + each index point represents a $ N profit for each s&p N contract held + for the first time since the N crash traders said that they were able to trade several hundred s&p N contracts at a time in a highly liquid market + many institutions and individual investors have <unk> away from stock-index futures blaming them for speeding the stock market crash on black monday two years ago + since the crash many futures traders have n't assumed large positions for fear that the s&p N market with much of its customer order flow missing would dry up if prices turned against them + more than N traders <unk> the s&p N futures pit to await the opening bell + traders were shouting bids and offers a full five minutes before the start of trading at N am + the contract fell five points at the open to N the maximum opening move allowed under <unk> adopted by the merc to stem a market slide + but several traders quickly stepped up and bid for contracts driving prices sharply higher + the market <unk> near friday 's closing price of N for about a half hour moving several index points higher or lower in seconds then broke higher and did n't look back + the s&p N contract that expires in december closed up a record N points on volume of nearly N contracts + traders five feet from each other were making bids and offers that were a full point apart said one s&p N broker + you could buy at the bid and sell at the offer and make a fortune he <unk> + several of wall street 's largest securities firms including salomon brothers inc. and painewebber inc. were also large buyers traders said + salomon brothers was among the largest sellers of stock-index futures last week traders said + brokerage firms as a rule do n't comment on their market activity + unlike the week following black monday two years ago individual traders in the s&p N pit were also being <unk> <unk> about their one-day profits + with the fbi around here <unk> rights are a thing of the past said one trader referring to the federal investigation of futures trading that so far has resulted in N <unk> <unk> against individuals on the merc and the chicago board of trade + the market for $ N billion of high-yield junk bonds regained some of its footing as the dow jones industrial average rebounded from friday 's plunge + but the junk recovery led by the bellwether rjr holdings bonds was <unk> + no trading existed for the vast majority of junk bonds securities industry officials said + on friday trading in practically every issue ground to a halt as potential buyers fled and brokerage firms were unwilling to provide bid and offer prices for most issues + nothing traded on friday and people were n't really sure where the market should have opened yesterday said raymond <unk> <unk> of merchant banking at merrill lynch & co + but we had a fairly active day yesterday + at drexel burnham lambert inc. the leading underwriter of junk bonds i was prepared to be in a very bad mood tonight said david <unk> a junk bond trader + now i feel maybe there 's a little bit of euphoria + but before the stock market rebounded from a sharp early sell-off yesterday he said you could n't buy junk bonds and you could n't give them away + yesterday 's rally was led by rjr holdings N N N bonds which initially tumbled three points or $ N for each $ N face amount to N N before rebounding to N N + bonds issued by <unk> <unk> <unk> and american standard also showed big gains recovering almost all their losses from friday and early yesterday + but traders said the junk bond market increasingly is <unk> into a <unk> group in which trades can be executed easily and a larger group of <unk> bonds in which liquidity or the ability to trade without too much difficulty has steadily deteriorated this year + liquidity has n't returned to the vast middle ground of the market said mr. <unk> of merrill + the <unk> are still <unk> said mr. <unk> of drexel + analysts are concerned that much of the high-yield market will remain <unk> for investors + paul <unk> associate professor at the massachusetts institute of technology 's sloan school of management citing a pattern of junk-bond default rates that are low in the early years after issuance and rise later says we 're now in a period where we 're starting to see defaults from the big issue years of N to N + mark <unk> a senior vice president at standard & poor 's corp. confirms that there is increasing concern about the future liquidity of the junk bond market + junk bonds are a highly <unk> market said lewis <unk> vice chairman of smith barney harris upham & co + there 's a whole bunch of stuff that 's money good and a whole bunch of stuff that 's not so good + analysts at standard & poor 's say junk bond offerings by tightly stretched issuers seem to be growing + almost $ N billion of junk bonds that are considered <unk> include issues from sci tv gillette holdings not related to gillette co. <unk> <unk> furniture allied stores federated department stores national <unk> <unk> holdings <unk> leaseway transportation and price communications + you could still have some very bad times ahead said mr. <unk> + it 's possible to have a N N default rate in one year because we 're already seeing big problems in the midst of a pretty strong economy + i 'm certainly not comfortable saying we 've seen the bottom + but yesterday 's rally among good junk was a badly needed <unk> for the market + many issues bounced off the floor mr. <unk> said and benchmark junk issues recovered all of their losses from friday and early yesterday + in contrast he says the stock market gained back only about half what it lost friday and the government bond market lost about half what it gained friday + traders said yesterday 's rally was fueled by insurance companies looking for bargains after a drastic slide in prices the past month + in addition mutual funds did n't appear to be major sellers of high-yield securities as was expected + sometimes a <unk> is healthy said drexel 's mr. <unk> + people will learn to be more <unk> + if they do good credit analysis they will avoid the hand <unk> + i think the market is in good shape + should you really own stocks + that 's a question a lot of people are asking following the stock market 's stunning display of volatility + <unk> financially and <unk> by friday 's <unk> 190-point drop in the dow jones industrial average and yesterday 's <unk> rebound they 're wondering if an individual has any business being in the market + the answer say academic researchers money managers and investment specialists is yes as long as you approach the stock market as an investor + but they say people should n't try to be traders who buy and sell in an effort to ride the latest economic trend or catch the next hot stock + the case for owning stocks over the long-term is compelling + if you look at N years worth of investment history including the great depression and every bear market since stocks have outperformed almost everything an individual could have owned by a long shot says barry berlin vice president at first wachovia capital management + a dollar invested in the stock market in N would have grown to $ N by the end of last june according to laurence <unk> managing director at <unk> associates inc + but a dollar invested in long-term bonds in N would have grown to only $ N and a dollar put in treasury bills would equal a <unk> $ N + the longer the time period the less risk there is of losing money in the stock market + over time the odds increasingly favor the investor with a diversified portfolio + for instance ken gregory a san francisco money manager <unk> that if an investor holds a basket of stocks that tracks the standard & poor 's 500-stock index the chance of losing money is N N to N N over a 10-year period compared with N N over three years and N N over one year + if you do n't need the money for N years there 's a <unk> case for sticking to a steady core of stocks mr. gregory says + stock-market investments also help balance the other assets an individual owns says john <unk> jr. president of the institute of certified financial planners + stocks have a place in an investors ' portfolio along with real estate bonds international securities and cash he says + there are some important <unk> before investing in stocks individuals should have at least three to six months of living expenses set aside in the bank most investment advisers say + individuals also should focus on building equity in a home which provides some protection against inflation as well as a <unk> that can be <unk> in late in life to help cover the cost of retirement living + people also should n't invest money in stocks that they 'll need in the near future for example for college tuition payments or retirement expenses + you may have to sell your stocks at a time when the market takes a plunge says mr. <unk> a del <unk> calif. financial planner + but once the <unk> are covered then i would start to invest even if it 's as little as $ N says michael lipper president of lipper analytical services inc + he says individuals should consider not just stocks but other long-term investments such as high-quality bonds + despite the strong case for stocks however most pros warn that individuals should n't try to profit from short-term developments + it 's very difficult to do says donald holt a market strategist for <unk> morgan securities a los angeles brokerage firm + our markets move so fast and they are so volatile there 's no way the average investor can compete with the pros + individual investors face high transaction costs of moving in and out of the market + the cost of executing stock orders <unk> from brokerage to brokerage and with the size of the order but N N of the order 's value is an average says stephen boesel manager of t. rowe price 's growth and income mutual fund + and assuming their first investment is successful investors will have to pay taxes on their gains + that can reduce returns by a third or more once local taxes are included mr. lipper says + after that individual traders face the risk that the new investment they choose wo n't perform well so their trading costs could be sustained for nothing + it 's very tough for most individuals to <unk> the mutual funds or the market says mr. lipper + you should really think twice if you think you can <unk> the system + then too many individual investors lack the <unk> emotional makeup professionals say is needed to plunge in and out of the market + so what 's the best way to buy stocks + unless an individual has a minimum of between $ N and $ N to invest in stocks he 's still better off in mutual funds than in individual stocks in terms of getting enough attention from a competent broker says mr. lipper + still he adds i could see owning both given that individuals often have an advantage over big investors in <unk> special situations based on their own <unk> he adds + george douglas first vice president at drexel burnham lambert inc. says that individuals have a particular edge now in small to <unk> niche companies with exciting earnings prospects a traditional <unk> ground for small investors + this growth sector which usually carries a <unk> multiple about twice that of the standard & poor 's N happens to include some of the market 's most attractive bargains right now + it 's now selling at a multiple about even with the market says mr. douglas + moreover mr. douglas sees a revival of institutional interest in smaller growth stocks that could boost the performance of these stocks in the medium term + many big wall street brokerage firms who eliminated their research effort in stocks of emerging growth companies a few years ago are now <unk> coverage of this area he notes + we 're seeing a real turnaround in interest in small growth stocks he says + the pros <unk> advise individuals to stay away from the latest investment fad + they say that 's especially important this late in the growth phase of the economic cycle when there 's no robust bull market to bail investors out of their mistakes + friday 's correction presents a pretty good buying opportunity but let 's not speculate at this point in the business cycle says <unk> <unk> chief equity portfolio strategist at first boston corp + buy stocks on weakness for their long-term fundamentals he says + in the long run investment advisers say most investors will be better off using the <unk> averaging method of buying stocks + in this method a person invests a regular amount every month or quarter into the stock market whether the market is up or down + that cuts the risk mr. gregory the san francisco money manager points out + when the market is low you are buying more shares and when it 's high you 're buying fewer shares he says + otherwise if you put all your money in at one time by sheer bad luck you might pick a terrible time and have to wait three years to get even mr. gregory says + a disciplined program will work the best mr. boesel says + one of the hardest things to do is to buy stocks when the market is down he says + but that 's just the time when you should be buying them + compound annual returns including price changes and income from interest and dividends + \* actual performance not annualized + source <unk> associates inc + the following issues were recently filed with the securities and exchange commission <unk> co. initial public offering of two million shares of common stock of which N shares are being offered by the company and N shares by holders via blunt ellis & <unk> inc. and robert w. <unk> & co + giant industries inc. initial public offering of N common shares of which N will be sold by the company and the rest by holders via shearson lehman hutton inc. and <unk> <unk> inc + <unk> fund inc. initial offering of five million common shares via smith barney harris upham & co + <unk> overseas ltd. initial offering of four million common shares of which N million will be sold in the u.s. and the balance outside the u.s. via smith barney harris upham & co. and <unk> <unk> & co + donald trump who faced rising doubt about his bid for american airlines parent amr corp. even before a united airlines buy-out came apart friday withdrew his $ N billion offer + separately bankers representing the group trying to buy united 's parent ual corp. met with other banks about <unk> that purchase at a lower price possibly around $ N a share or $ N billion + but a lower bid could face rejection by the ual board + mr. trump who vowed wednesday to go forward with the bid said he was dropping it in light of the recent change in market conditions + he said he might now sell his amr stake buy more shares or make another offer at a lower price + the manhattan real-estate developer acted after the ual buyers failed to obtain financing for their earlier $ 300-a-share bid which sparked a selling panic among that <unk> into a 190-point drop friday in the dow jones industrial average + news about ual and amr whose shares never reopened after trading was halted friday for the ual announcement sent both stocks <unk> in composite trading on the new york stock exchange + ual tumbled $ N to $ N on volume of N million shares and amr declined by $ N to $ N as N million shares changed hands + together the two stocks <unk> havoc among takeover stock traders and caused a N N drop in the dow jones transportation average second in size only to the stock-market crash of oct. N N + some said friday 's market debacle had given mr. trump an excuse to bail out of an offer that showed signs of <unk> even before problems emerged with the ual deal + after reaching an intraday high of $ N the day mr. trump disclosed his bid oct. N amr 's stock had retreated as low as $ N last week + some takeover stock traders had been betting against mr. trump because he has a record of disclosing stakes in companies that are potential takeover targets then selling at a profit without making a bid + he still has n't proven his <unk> as a <unk> <unk> artist said airline analyst kevin murphy of morgan stanley & co + he 's done this thing where he 'll buy a little bit of a company and then trade out of it + he 's written this book the art of the deal + why does n't he just follow through on one of these things + mr. trump withdrew his bid before the amr board which is due to meet tomorrow ever formally considered it + amr had weighed a wide range of possible responses from flat rejection to <unk> and leveraged buy-outs that might have included either employees a <unk> buyer such as texas billionaire robert bass or both + amr had also sought to <unk> mr. trump in congress by lobbying for legislation that would have bolstered the authority of the transportation department to reject airline buy-outs + yesterday mr. trump tried to put the blame for the collapse of the ual deal on congress saying it was rushing through a bill to protect amr executives + i believe that the perception that legislation in this area may be hastily approved contributed to the collapse of the ual transaction and the resulting disruption in the financial markets experienced this past friday mr. trump wrote members of congress + amr declined to comment and mr. trump did n't respond to requests for interviews + mr. trump never said how much amr stock he had bought only that his holdings were substantial + however he only received federal clearance to buy more than $ N million of the stock on sept. N when the price rose $ N a share to $ N + between then and his bid on oct. N the price <unk> between $ N and $ N + in an attempt to persuade investors that his bid was n't just a stock play mr. trump promised last week to notify the market before selling any shares + amr was trading at around $ N yesterday before his withdrawal announcement then immediately fell to about $ N + assuming that he paid a rough average price of $ N a share and assuming he did n't sell before his announcement reached the market mr. trump could be sitting with a modest loss with the stock at $ N + some analysts said amr chairman robert crandall might seize the opportunity presented by the stock price drop to protect the nation 's largest airline with a defensive transaction such as the sale of stock to a friendly holder or company employees + however other knowledgeable observers said they believed mr. crandall and the amr board might well decide to tough it out without taking any extra steps + some analysts said they believed mr. trump whose <unk> <unk> had been viewed by some as a reason to believe he would n't back out might come back with a lower bid + ray <unk> of dillon read & co. said mr. trump is stepping back and waiting for the dust to settle + i 'm sure he still wants amr + but others remained skeptical + i was never sure donald trump really wanted to take amr said john <unk> a bond analyst with shearson lehman hutton inc + what happened with united was a <unk> way for him to <unk> out + mr. trump never obtained financing for his bid + that skepticism would leave him with an even greater credibility problem should he return that would <unk> him in any effort to oust the board in a proxy fight + meanwhile citicorp and chase manhattan corp. the two lead lenders on the ual buy-out met with other banks yesterday to determine if they would be willing to finance the buy-out at a lower price + officials familiar with the talks said citicorp had discussed lowering the offer to $ N a share but said that price was a talking point and that no decision has been made + at $ N a share the group would have to borrow about $ N billion from banks + the first ual deal unraveled after citibank and chase could n't raise $ N billion + citibank and chase had agreed to commit $ N billion and said they were highly confident of raising another $ N billion + together citicorp and chase received $ N million in fees to raise the rest of the financing + but other banks balked at the low interest rate and banking fees the ual group was willing to pay them + officials familiar with the bank talks said the ual buy-out group ual pilots management and british airways plc is now willing to pay higher bank fees and interest but is n't likely to boost its $ N million equity contribution + nor is the group likely to come forward with a revised offer within the next N hours despite the hopes of many traders + the group 's advisers want to make certain they have firm bank commitments the second time around + even if the buy-out group is able to obtain financing the transaction still faces obstacles + ual 's board could reject the new price as too low especially since there are n't any competing bids + los angeles investor marvin davis whose $ <unk> offer was rejected by ual 's board has n't shown signs of pursuing a $ 300-a-share <unk> bid he made last month + in addition the coalition of labor and management longtime enemies who joined forces only under the threat of mr. davis 's bid could break apart now + the group 's resilience gets its first test today when N top pilot union leaders <unk> outside chicago in a previously scheduled meeting + union chairman <unk> rick <unk> faces the tough task of explaining why banks refused to finance a buy-out the members approved <unk> last week + the pilot union is <unk> to pursue an acquisition whatever the board decides + but if the board <unk> a reduced bid and decides to explore other alternatives it could transform what has been a <unk> process into an <unk> one + the pilots could play <unk> by noting they are crucial to any sale or restructuring because they can refuse to fly the airplanes + if they were to insist on a low bid of say $ N a share the board might n't be able to obtain a higher offer from other bidders because banks might hesitate to finance a transaction the pilots oppose + also because ual chairman stephen wolf and other ual executives have joined the pilots ' bid the board might be forced to exclude him from its deliberations in order to be fair to other bidders + that could cost him the chance to influence the outcome and perhaps join the winning bidder + influential members of the house ways and means committee introduced legislation that would restrict how the new savings-and-loan bailout agency can raise capital creating another potential obstacle to the government 's sale of sick thrifts + the bill whose backers include chairman dan <unk> d. ill. would prevent the resolution trust corp. from raising temporary working capital by having an <unk> bank or thrift issue debt that would n't be counted on the federal budget + the bill intends to restrict the rtc to treasury borrowings only unless the agency receives specific congressional authorization + such agency <unk> borrowing is unauthorized and expensive far more expensive than direct treasury borrowing said rep. <unk> stark d. calif. the bill 's chief sponsor + the complex financing plan in the s&l bailout law includes raising $ N billion from debt issued by the newly created rtc + this financing system was created in the new law in order to keep the bailout spending from swelling the budget deficit + another $ N billion would be raised through treasury bonds which pay lower interest rates + but the rtc also requires working capital to maintain the bad assets of thrifts that are sold until the assets can be sold separately + that debt would be paid off as the assets are sold leaving the total spending for the bailout at $ N billion or $ N billion including interest over N years + it 's a problem that clearly has to be resolved said david <unk> executive director of the rtc + the agency has already spent roughly $ N billion selling N insolvent s&ls and it is likely to sell or merge N by the time the bailout concludes + <unk> other working capital he said the rtc would be forced to delay other thrift resolutions until cash could be raised by selling the bad assets + we would have to wait until we have collected on those assets before we can move forward he said + the complicated language in the huge new law has <unk> the fight + the law does allow the rtc to borrow from the treasury up to $ N billion at any time + moreover it says the rtc 's total obligations may not exceed $ N billion but that figure is derived after including notes and other debt and <unk> from it the market value of the assets the rtc holds + but congress did n't anticipate or intend more public debt say opponents of the rtc 's <unk> plan and rep. charles <unk> d. n.y said the rtc oversight board has been <unk> in not keeping congress informed + that <unk> leads to a proposal like the one from ways and means which seems to me sort of <unk> he said + the rtc is going to have to pay a price of prior <unk> on the hill if they want that kind of flexibility + the ways and means committee will hold a hearing on the bill next tuesday + we 're about to see if advertising works + hard on the heels of friday 's 190-point stock-market plunge and the uncertainty that 's followed a few big brokerage firms are rolling out new ads <unk> a familiar message keep on investing the market 's just fine + their mission is to keep clients from <unk> the market as individual investors did in <unk> after the crash in october + just days after the N crash major brokerage firms rushed out ads to calm investors + this time around they 're moving even faster + painewebber inc. <unk> a new television commercial at N p.m. edt yesterday and had it on the air by last night + fidelity investments placed new ads in newspapers yesterday and wrote another new ad appearing today + shearson lehman hutton inc. by yesterday afternoon had already written new tv ads + it considered running them during tomorrow night 's world series broadcast but decided not to when the market recovered yesterday + other brokerage firms including merrill lynch & co. were <unk> out potential new ad strategies + the brokerage firms learned a lesson the last time around when frightened investors flooded the phone lines and fled the market in a panic + this time the firms were ready + fidelity for example prepared ads several months ago in case of a market plunge + when the market went into its free fall friday afternoon the investment firm ordered full pages in the monday editions of half a dozen newspapers + the ads touted fidelity 's automated <unk> beneath the huge headline fidelity is ready for your call + a fidelity spokesman says the <unk> which already was operating but which many clients did n't know about received about double the usual volume of calls over the weekend + a lot of investor confidence comes from the fact that they can speak to us he says + to maintain that dialogue is absolutely crucial + it would have been too late to think about on friday + we had to think about it ahead of time + today 's fidelity ad goes a step further encouraging investors to stay in the market or even to plunge in with fidelity + <unk> the headline diversification it <unk> based on the events of the past week all investors need to know their portfolios are balanced to help protect them against the market 's volatility + it goes on to plug a few diversified fidelity funds by name + painewebber also was able to gear up quickly thanks to the N crash + in the aftermath of the N debacle the brokerage firm began taping commercials in-house ultimately getting its timing down fast enough to tape a commercial after the market closed and rush it on the air that night + it also negotiated an arrangement with cable news network under which <unk> would agree to air its last-minute <unk> + the new painewebber commercial created with ad agency saatchi & saatchi co. features mary farrell one of the firm 's most visible investment strategists <unk> particularly bullish + taped just as the market closed yesterday it offers ms. farrell advising we view the market here as going through a relatively normal cycle + we continue to feel that the stock market is still the place to be for long-term appreciation + the spot was scheduled to appear three times on <unk> last night + painewebber considered an even harder sell recommending specific stocks + instead it settled on just urging the clients who are its <unk> to keep that money in the market + we 're saying the worst thing that anyone can do is to see the market go down and dump everything which just drives the prices down further says john <unk> painewebber 's director of advertising + if you owned it and liked it friday the true value has n't changed + he adds this is n't N <unk> + with the market <unk> and then closing up more than N points yesterday investment firms had to constantly revise their approach + at shearson lehman executives created potential new commercials friday night and throughout the weekend then had to <unk> yesterday afternoon + the plan had been to make one of shearson 's <unk> black-and-white where we stand commercials which have been running occasionally in response to news events since N + the ad would have run during the world series tomorrow replacing the debut commercial of shearson 's new ad campaign leadership by example + but in a meeting after the market closed yesterday shearson executives decided not to go ahead with the stock-market ad + we do n't think at this point anything needs to be said + the market seems to be <unk> out we 're taking a <unk> attitude says <unk> b. stewart executive vice president of marketing + in any case the brokerage firms are clearly moving faster to create new ads than they did in the fall of N + but it remains to be seen whether their ads will be any more effective + in N despite a <unk> of ads from most of the major investment firms individuals ran from the market en <unk> + now the firms must try their hardest to prove that advertising can work this time around + ad notes + arnold advertising + edward <unk> former chairman of della femina mcnamee <unk> reached an agreement in principle to acquire a majority stake in arnold advertising a small boston shop + terms were n't disclosed + mr. <unk> who resigned his della femina post in september becomes chairman and chief executive of arnold + john <unk> the agency 's president and chief executive will retain the title of president + separately mcdonald 's corp. oak <unk> ill. named arnold to handle its estimated $ N million cooperative ad account for the hartford conn. area + that account had been handled by della femina mcnamee wcrs + education ads + a <unk> ad supplement to business week 's special corporate elite issue calls on business leaders to use their clout to help solve the nation 's education crisis + the supplement the largest ever for the magazine includes ads from N corporate advertisers and <unk> off a two-year business week initiative on education + the magazine will distribute N N of the gross revenues from the supplement as grants to innovative teachers + you know what the law of averages is do n't you + it 's what N explains why we are like well ourselves rather than <unk> jackson N <unk> that it 's possible to <unk> in a lake that averages two feet deep and N predicts that N <unk> placed before N <unk> would produce N <unk> rock <unk> roll <unk> + baseball that game of the long haul is the <unk> sport of the mean and the mean <unk> law caught up with the san francisco giants in the world series last weekend + the team that dumped runs by the bushel on the chicago cubs in the national league playoffs was held to just one in two games by the <unk> oakland a 's the gang that had been done <unk> similarly by the los angeles <unk> and <unk> <unk> in last year 's <unk> + <unk> much of the damage was accomplished by a 's who had some catching up to do + in game two on a cool sunday evening in this land of perpetual autumn a lot of the catching up was done by the a 's <unk> terry <unk> + he hit a N pitch from rick <unk> into the <unk> stands in inning four to stretch his team 's lead from N to a decisive N where it stayed + so what if <unk> had struck just seven home runs in N regular-season games and <unk> in the seventh position of the a 's lineup + if you get your pitch and take a good swing anything can happen he later <unk> + on saturday night quite a few of the boys in green and gold <unk> away successes to <unk> the pain of past and no doubt future <unk> + mark <unk> the big <unk> oakland first <unk> had three hits in four at <unk> two more than he 'd had in the <unk> <unk> series in which he 'd gone <unk> + the <unk> <unk> <unk> N through N <unk> the bottom of the order got seven of their team 's N hits and scored four of its runs in a N decision + <unk> dave stewart held the giants to five hits to account for the zero on the other side of the saturday <unk> + that he was the a 's <unk> <unk> during its american league campaign with a N mark plus two wins over toronto in the playoffs indicates he may have some evening up coming but with the way his <unk> <unk> is <unk> that might not be this week + the same goes for mike moore another veteran who <unk> early struggles to permit the giants but a run and four hits in seven <unk> in sunday 's contest + every guy they put out there had a better <unk> than the guy before <unk> giant manager roger craig + he 's an <unk> who 's one of the leading <unk> of the fashionable delivery which looks like a <unk> until it <unk> beneath the <unk> bat + the <unk> of the <unk> is that the a 's go into san francisco 's candlestick park tonight up two games to none in the <unk> <unk> + the <unk> to <unk> with here says that about three of four clubs N of N that took N series leads went on to win it all + that 's not an average to <unk> giant <unk> + one might think that the home fans in this series of the subway called bart that 's a better name for a public <unk> than desire do n't you think would have been <unk> over the proceedings but they <unk> them in relative calm + <unk> of the two <unk> sat side by side in the <unk> seats of oakland <unk> and while they cheered their <unk> and <unk> the opposition <unk> advanced no further at least as far as i could see + a few folks even showed up wearing <unk> bearing the colors and <unk> of both teams + i 'm for the giants today but only because they lost yesterday + i love <unk> both + the only thing i 'm <unk> for is for the series to go seven games said david williams a sacramento <unk> at the <unk> before sunday 's go + the above represents a <unk> of either <unk> or <unk> + i choose to believe it 's the latter although it probably springs from the fact that just about everyone out here including the a 's and giants is originally from somewhere else + <unk> it to say that if this were a new york <unk> series or one between the chicago cubs and white <unk> <unk> it 's possible you 'd need <unk> police in every other seat to separate opposing fans and only the <unk> would <unk> their <unk> + anyway the a 's gave you a lot of heroes to root for + in the opening game besides <unk> and stewart there was walt weiss a <unk> <unk> <unk> who had lost a couple months of the season to <unk> surgery + he was <unk> <unk> <unk> in game two moved a <unk> along in the a 's <unk> second inning and <unk> for his team 's final tally + such is his reputation among the east bay <unk> that when he hit his first career home run last season the fan who caught it agreed to turn the ball over to him in return for an <unk> + not his <unk> <unk> <unk> 's + an a 's <unk> of the second game was <unk> henderson who <unk> the hot side of the <unk> equation + he <unk> toronto in the playoffs with six hits seven walks and eight stolen bases in N at <unk> and continued that by going <unk> at the plate sunday along with walking stealing a base and scoring a run + when you 're in the <unk> you see every ball <unk> he <unk> + the cold guys in the set were will clark kevin mitchell and <unk> williams the giants ' N <unk> + they combined for N hits six home runs and N runs <unk> in in the five games against the cubs + they went a collective <unk> here with zero <unk> and <unk> + it 's that last set of numbers as much as anything else that gives the giants hope in the series games to come + i believe in the law of averages declared san francisco <unk> coach dusty baker after game two + i 'd rather see a <unk> <unk> who 's hot come up for the other side than a good <unk> who 's cold + but the old <unk> <unk> <unk> offered no prediction about when good times would return to his side + when it goes you never know when you 'll get it back he said + that 's baseball + ncr corp. reported a N N drop in third-quarter net income citing intense competition that caused its gross profit margins to dip + net income for the quarter fell to $ N million from $ N million roughly what analysts had expected + but per-share profit dropped only N N to $ N a share from $ N a share as the company continued its stock buy-back plan + average shares outstanding dropped to N million from N million + revenue fell N N to $ N billion from $ N billion + the computer maker which sells more than half its goods outside the u.s. also said the negative effect of a stronger u.s. dollar will <unk> affect its fourth-quarter performance and make it difficult to better N results + ncr said revenue declined both in the u.s. and overseas reflecting a world-wide softening of the computer markets + the company however said orders in the u.s. showed good gains during the latest quarter + analysts estimate those gains at N N to N N a good part of it coming from large orders placed by a few of ncr 's major customers + in addition to a general slowing of the computer industry ncr which sells automated teller machines and computerized cash <unk> is also affected by the retail and financial sectors areas of the economy that have generally not been robust notes <unk> g. <unk> an analyst for salomon brothers inc + these factors combined with a strong dollar should <unk> affect the current quarter 's results ncr said + in the year-earlier fourth quarter ncr had profit of $ N million or $ N a share on revenue of $ N billion + mr. <unk> said he lowered his full-year estimates for N to $ N a share from $ N a share + revenue projections were slashed to $ N billion from $ N billion + last year ncr had net income of $ N million or $ N a share on $ N billion in revenue + for the nine months the company 's earnings fell N N to $ N million or $ N a share from $ N million or $ N a share + revenues declined N N to $ N billion from $ N billion + in new york stock exchange composite trading yesterday ncr shares fell N cents to close at $ N + concerning your sept. N article wall street firms link analysts ' pay to performance i 'm <unk> that wall street is finally <unk> in to the hard cold facts of the real working world + if the firms are serious however why limit the practice to the poor <unk> analysts whose ability to see into the future is fragile at best + why not extend the same harsh standards to the sales force and pay brokers a base salary with annual bonus based on how much money they made for their clients during the year + that should stop a lot of <unk> and produce a stock market driven only by professional concern careful thought and good sense + now would n't that be a <unk> + <unk> <unk> <unk> newport news va + steve clark a shearson lehman hutton inc. trader reported for work at N a.m. two and a half hours before the usual monday morning strategy meeting + at jefferies & co. j. francis <unk> did n't reach the office until N a.m. but then he had been up most of the night at home + i had calls all night long from the states he said + i was <unk> up every hour N N N N + people are looking for possible opportunities to buy but nobody wants to stick their <unk> out + for many of london 's securities traders it was a day that started nervously in the small hours + by <unk> the selling was at <unk> fever + but as the day ended in a <unk> wall <unk> rally the city <unk> a sigh of relief + so it went yesterday in the trading rooms of london 's financial district + in the wake of wall street 's plunge last friday the london market was considered especially vulnerable + and before the opening of trading here yesterday all eyes were on early trading in tokyo for a clue as to how widespread the fallout might be + by the time trading officially got under way at N a.m. the news from asia was in + and it left mixed signals for london + tokyo stocks closed off a significant but <unk> N N on thin volume hong kong stocks declined N N in orderly trading + at jefferies ' trading room on <unk> circus a <unk> circle at the edge of the financial district desktop computer screens displayed the london market 's major barometer the financial times-stock exchange N share index + red figures on the screens indicated falling stocks blue figures rising stocks + right away the <unk> outnumbered the blues N to N as the index opened at N off N points or N N + i see concern but i do n't see any panic said mr. <unk> a big <unk> new york native who runs the <unk> office + the jefferies office a branch of the los angeles-based firm played it <unk> seeking to avoid risk + this is not the sort of market to have a big position in said david smith who heads trading in all non-u.s. stocks + we tend to run a very tight book + jefferies spent most of its <unk> in the morning trying to match buyers and sellers and there were n't many buyers + all the takeover stocks scottish & <unk> b.a.t <unk> are getting pretty well <unk> this morning mr. smith said + seconds later a <unk> sell order for scottish & <unk> came in + for the third time in N minutes a trader next to mr. smith left the <unk> area to have a cigarette + on the screens only two <unk> blue figures remained but the index had recovered a few points and was off about N + because tokyo did n't collapse let 's pick up a little stock mr. smith said + he targeted N shares of reuters and <unk> a <unk> to call up on his screen other dealers ' price quotes + the vivid yellow figures showed the best price at N pence $ N and mr. smith 's traders started putting out <unk> + but the market <unk> a serious buyer on a day dominated by selling and the quotes immediately jumped to N pence + when i want to buy they run from you they keep changing their prices mr. smith said + it 's very frustrating + he temporarily abandoned his search for the reuters shares + by this time it was N a.m. in new york and mr. smith <unk> a call from a new york customer wanting an opinion on the british stock market which had been having troubles of its own even before friday 's new york market break + fundamentally dangerous mr. smith said almost in a <unk> fundamentally weak fairly vulnerable still extremely <unk> poised + we 're in for a lot of turbulence + he was right + by midday the london market was in full retreat + it 's falling like a stone said danny <unk> a pit trader who was standing outside the london international financial futures exchange + only half the usual <unk> crowd gathered at the tony <unk> & <unk> wine bar on old broad street nearby + conversation was subdued as most <unk> watched the latest market statistics on television + at N p.m. the index hit its low N off N points + france opened the limit down off at least N N if you could calculate the index which you could n't mr. clark the shearson trader said early in the afternoon + spain is down N N and suspended sweden 's down N N norway N N + this market has been very badly damaged + as N p.m. wall street 's opening time <unk> shearson traders and salesmen traded bets on how low the new york market would open + in the center of the trading floor chief trader roger <unk> and two colleagues scrambled for the telephones as soon as the new york market opened <unk> more than N points in the first few minutes + they saw an opportunity created by the sell-off + as wall street traders dumped american depositary receipts in jaguar plc mr. <unk> and trader sam <unk> bought them to <unk> in the <unk> + investors here still expect ford motor co. or general motors corp. to bid for jaguar + suddenly after about N minutes the u.s. markets rallied + the mmi has gone better shouted one trader at about N london time as the u.s. major markets index contract suddenly indicated a <unk> + as wall street strengthened the london trading room went wild + traders shouted as their screens posted an <unk> loss on wall street + then nine minutes later wall street suddenly rebounded to a gain on the day + rally rally rally shouted shearson trader andy rosen selling more jaguar shares + this is panic buying + as the london market rallied some <unk> whether the weekend of worrying and jitters had been worth it + the london index closed at N its high for the day off N or about N N + ambassador paul <unk> 's statement notable & <unk> sept. N if you have a million people working for you every bad thing that has one chance in a million of going wrong will go wrong at least once a year is a pretty negative way of looking at things + is n't it just as fair to say that if you have a million people working for you every good thing that has one chance in a million of going right will go right at least once a year + do n't be such a <unk> mr. ambassador + frank <unk> + the house aviation subcommittee approved a bill that would give the transportation secretary authority to review and approve leveraged buy-outs of major u.s. airlines + the collapsed plan to acquire ual corp. parent of united airlines spurred quick action on the legislation introduced wednesday and approved by the subcommittee on a voice vote yesterday + the bill is expected to be taken up by the public works and transportation committee tomorrow and a floor vote by next week will be urged + the measure drew criticism from the bush administration and a <unk> shot from financier donald trump who yesterday withdrew his takeover bid for amr corp. the parent of american airlines + in a letter to subcommittee chairman james <unk> d. minn. mr. trump criticized the bill as an explicit effort to thwart his bid for amr and said it contributed to the collapse of the deal + <unk> <unk> deputy transportation secretary also sent a letter to express the administration 's opposition to the bill in its present form + rep. <unk> brushed off mr. trump 's allegations as an excuse for his own deal failing + he also said the fact that the other letter had n't come from transportation secretary samuel skinner indicated there is <unk> room in the administration 's position + mr. <unk> and other committee members repeatedly stressed that the legislation was n't a response to any particular market situation + but they cited the ual and amr examples as reasons to move quickly to enact this legislation + aides both in the house and senate said the withdrawal of the trump bid for amr is n't likely to <unk> efforts to push the legislation + it 's still on the fast track and we still want to do it said one senate aide + the bill is aimed at addressing the concern that an airline might sacrifice costly safety measures to pay off the debt incurred in a leveraged buy-out + currently the transportation secretary does n't have clearly established authority to block mergers but can take the drastic step of <unk> the operating certificate of any carrier the official considers <unk> + supporters of the legislation view the bill as an effort to add stability and <unk> to the <unk> process and to preserve the safety and fitness of the industry + in general the bill would give the transportation department a 30-day review period before N N or more of the voting stock of a major u.s. air carrier could be acquired + it also would require the acquiring party to notify the transportation secretary and to provide all information relevant to determining the intent of the acquisition + the bill would allow the secretary to reject a buy-out if sufficient information has n't been provided or if the buy-out is likely to weaken the carrier financially result in a substantial reduction in size of the airline through disposal of assets or give control to a foreign interest + if more information is needed the secretary would have authority to extend the review period N days + all the witnesses both congressmen and industry experts expressed support for the bill in order to prevent <unk> from <unk> in on airline profits at the expense of safe <unk> service + but several committee members <unk> some backing mr. trump 's claim that the threat of regulation caused the failure of the ual deal and the stock-market plunge + one of the major concerns expressed by the <unk> was that large airlines would be prohibited from <unk> themselves of smaller entities and producing independent <unk> companies + in a possible prelude to the <unk> of talks between boeing co. and striking machinists union members a federal mediator said representatives of the two sides will meet with him tomorrow + it could be a long meeting or it could be a short one said doug hammond the mediator who called the agreement to meet a first step toward a <unk> of negotiations + we 're encouraged that talks are scheduled again but beyond that we have made no expression of expectations a boeing spokesman said + the machinists union has rejected a three-year contract offer that would have provided a N N wage increase over the life of the pact plus some bonuses + currently average pay for machinists is $ N an hour boeing said + now in its 13th day the strike has <unk> about N machinists and has started to delay delivery of some <unk> + with a strike fund of about $ N million the union had said it was prepared for a long strike + after the third week on strike union members will begin receiving $ N a week from the fund + work at boeing continues with supervisors and other <unk> personnel <unk> the lines + and at the company 's wichita kan. plant about N of the N machinists still are working boeing said + under kansas <unk> laws contracts can not require workers to be union members + boeing has declined to say how many employees are working at its giant <unk> wash. plant + union officials could n't be reached for comment + dpc acquisition partners a hostile suitor for dataproducts corp. said it intends to launch a tender offer for the computer printer maker 's common stock + dpc a group led by the new york investment firm <unk> inc. also said it plans to file preliminary materials with the securities and exchange commission regarding a shareholder solicitation to oust dataproducts ' board + dpc holds a N N stake in dataproducts and made a $ <unk> bid for the company in may but dataproducts management considered the $ N million proposal <unk> + a dpc spokesman declined to elaborate on the group 's new plan + in american stock exchange composite trading yesterday dataproducts shares jumped N cents to close at $ N + dataproducts which had been seeking a buyer for several months announced a restructuring plan in september and took itself off the auction block + the company 's restructuring includes plans to split into three sectors to phase out domestic printer manufacturing operations and to sell its new england subsidiary + as part of the plan dataproducts announced a pact to sell $ N million of its real estate holdings to <unk> properties inc. a unit of canada 's <unk> corp + jack davis dataproducts ' president chairman and chief executive officer said the company is at a loss to understand dpc 's intentions + he called today 's announcement <unk> and <unk> and said the company intends to proceed with its restructuring + share prices plummeted across europe yesterday in response to friday 's new york sell-off but some issues staged a late comeback after wall street opened without another rout + european investors have further reason for optimism today after the u.s. rebound + the frankfurt stock exchange which closed before the new york exchanges opened was the hardest hit of the major european markets with the dax index dropping N N + in london prices plummeted in early trading and were off as much as N N before coming back strong after the new york opening to close down only N N + west german economics minister helmut <unk> said in my view the stock market will stabilize relatively quickly + there may be one or other psychological or technical reactions but they are n't based on fundamentals + the economy of west germany and the ec european community is highly stable + paris which has been the center of speculation fever in recent weeks also was hard hit + share prices fell in milan amsterdam zurich madrid and stockholm + prices in brussels where a computer breakdown disrupted trading also tumbled + following is a breakdown of major market activity + frankfurt + one of the sharpest declines came in the financial center of europe 's strongest economy + the dax index of N west german blue chips plunged N N a one-day record <unk> out the summer 's gains + the index closed at N down N points + by comparison two years ago on black monday the new index would have dropped N N according to a projection by the exchange + investors may have reacted so strongly to friday 's u.s. stock market loss because they had vivid memories of the frankfurt exchange 's losing N N of its value in the N crash and its wake + this time however many small investors may have been hurt by acting so swiftly + they all went in the wrong direction said andreas <unk> an investment adviser for the bank in <unk> 's frankfurt branch + he said he told clients to buy selected west german blue chips after they fell by about N N + after the opening was delayed N minutes because of the crush of sell orders frankfurt 's normal <unk> trading session was extended N minutes to handle the heavy volume + the beginning was chaotic said nigel <unk> a broker for commerzbank ag + it took <unk> of an hour before enough prices could be worked out to get a reading on the market + institutional investors and bankers many of whom spent the night before in their offices watching far eastern markets were cautiously optimistic after the mild N N decline in tokyo stock prices + everybody was still confident including most institutional investors + that is why everybody was a little surprised by the storm of sell orders from small private investors said <unk> <unk> a senior trader for <unk> <unk> + some big institutions including banks began picking up <unk> shares late yesterday but most investors wanted to see what would happen in new york before acting + but even if wall street continues to stabilize analysts here say the latest blow to investor confidence could inhibit a swift recovery for the frankfurt exchange which already was showing signs of weakness after the dax had slipped from a N high of N on sept. N + some of west germany 's <unk> chips took some of the biggest hits + a N N drop for <unk> ag and dresdner bank ag 's N N decline were especially <unk> for their respective boards whose plans for major rights issues in november could now be in jeopardy + dresdner bank last month said it hoped to raise N billion marks $ N million by issuing four million shares at N marks each + yet yesterday 's market <unk> dresdner 's share price by N marks to N marks a share leaving little incentive for investors to subscribe to the standing price unless the market <unk> quickly + london + headed toward a record drop at midday the london stock market <unk> two-thirds of its losses in the wake of new york 's early rally + the financial times-stock exchange N share index closed off N points at N its high for the day after having plunged N points at N p.m + it was big institutions such as <unk> union insurance group scottish amicable investment managers and standard life assurance co. that <unk> the rally + attracted by low prices and encouraged by new york 's performance they <unk> up equities across the board + volume was N million shares more than triple recent levels + paris + late buying gave the paris <unk> a <unk> after its free fall early in the day + the <unk> general index ended down N N at N a drop of N points from friday + there was a volatility in the market that i have never seen before said <unk> <unk> a partner in brokerage firm <unk> <unk> + when wall street turned around shortly after the opening there was panic buying in paris + brokers said that as the news spread that wall street was moving up traders who had called to place sell orders changed their line in <unk> ordering buys instead + trading was driven primarily by small investors and speculators with large institutions waiting on the sidelines until late in the day + when wall street turned however the big boys entered the market looking for bargains + j.p. morgan & co. swung to a loss in the third quarter while ncnb corp. reported net income more than doubled and security pacific corp. net rose N N + j.p. morgan & co + j.p. morgan as expected posted a $ N billion net loss for the quarter reflecting the new york bank 's decision last month to add $ N billion to reserves for losses on loans to less-developed countries + the reserve addition placed the parent of morgan guaranty trust co. among a few major u.s. banks that have covered nearly all their medium and long-term portfolios to less-developed countries with reserves + the latest quarter 's loss <unk> $ N a share + in the year-earlier quarter morgan earned $ N million or $ N a share + george m. <unk> analyst at prudential-bache securities inc. called the results mildly disappointing + excluding the $ N billion provision and allowing for the taxes morgan paid earnings were about N cents a share mr. <unk> said + in new york stock exchange composite trading yesterday morgan climbed $ N a share to $ N + net interest income sank N N in the quarter to $ N million from $ N million + the interest rate on short-term funds which banks borrow to finance longer-term loans to customers was sharply higher morgan said + morgan received $ N million of interest payments on its medium and long-term brazilian loans had they been <unk> interest net interest income would have been $ N million higher in the quarter morgan said + such loans to argentina also remain classified as <unk> costing the bank $ N million of interest income in the third period + income from sources other than interest climbed N N to $ N million reflecting higher <unk> and other fees and gains on sales of investment securities + these increases were partly offset by lower <unk> income the bank said + non-interest expenses grew N N to $ N million + ncnb corp + ncnb corp. 's net income more than doubled in the period largely because of continued strong performance by the bank 's texas operations + the charlotte n.c. company said earnings rose to $ N million or $ N a share from $ N million or N cents a share a year earlier + the latest quarter included a gain of $ N million or N cents a share related to the purchase of the remaining N N of ncnb texas national bank from the federal deposit insurance corp + the strong performance however <unk> with an unexpectedly large increase in the size of ncnb 's problem loans particularly in the southeast + in the third quarter nonperforming assets jumped to $ N million or N N of net loans and leases from $ N million or N N in the second quarter + <unk> totaled $ N million or N N in the year-ago third quarter + included in the increase in the most recent quarter is a $ N million loan which ncnb said it expects to be fully repaid with no loss early in the fourth quarter + the deterioration in credit quality offset strong loan growth of N N in ncnb 's southeast operations as well as a N N growth in deposits resulting from an aggressive marketing campaign + the higher rates paid on deposits also helped squeeze ncnb 's net interest margin in the southeast to N N from N N a year earlier + in big board composite trading yesterday ncnb jumped $ N a share to $ N + results were released after the market closed + ncnb texas national formed from the <unk> of of the failed first <unk> corp. of dallas contributed $ N million to ncnb 's bottom line in the third quarter + ncnb said its third-quarter results reflect N N of earnings of the texas operation since aug. N + ncnb raised some $ N billion in new capital during the quarter to complete the ncnb texas purchase and to acquire several small failed thrifts to fill out its regional franchise + last week the banking company said it purchased both freedom savings & loan association tampa fla. and university federal savings association of san antonio texas for $ N million + in the first nine months ncnb 's net income climbed N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + security pacific corp + security pacific 's earnings growth slowed in the third quarter but the los angeles bank holding company was still able to post a N N increase in net income because of robust growth in residential real-estate and consumer loans + net rose to $ N million or $ N a share from $ N million or $ N a share a year earlier + the company said the gain resulted mainly from a $ N million increase in net interest income reflecting a N N increase in real estate loans mainly residential and a N N rise in consumer loans + these <unk> loans in effect replaced some <unk> assets such as <unk> loans which were allowed to decrease + as a result security pacific 's net interest margin fell only N basis points a more mild decrease than some major banks outside california which have been reporting more sluggish earnings + security pacific shares closed at $ N down N cents in big board composite trading + the earnings represent a N N return on assets for security pacific and an N N return on equity + the loan growth offset continuing real-estate loan losses in the depressed arizona market + security pacific reported a N N increase in net credit losses for the quarter to $ N million from $ N million in the year-ago period + nonperforming loans grew slightly to $ N billion at sept. N from $ N billion a year ago + security pacific 's loan-loss provision was down N N or $ N million because it added to its <unk> reserve the year before + non-interest income fell N N in the quarter mainly because of an unusual gain a year earlier from the sale of hong kong banking operations + non-interest expense grew only N N in the period + for the nine months net rose N N to $ N million or $ N a share from $ N million or $ N a share a year earlier + lin broadcasting corp. said it wo n't take a position on a revised tender offer by mccaw cellular communications inc. to buy lin and has asked for <unk> of the offer + the new offer which seeks N N of the cellular and broadcasting concern is for $ N a share for N million lin shares + mccaw 's revised tender offer would require mccaw to begin an auction process in july N that would buy out remaining holders at a per-share price roughly equivalent to what a third party might then have to pay for all of lin + lin is asking mccaw to clarify its tender offer which challenges an agreement between bellsouth corp. and lin to merge their <unk> businesses + bellsouth has notified lin that it would shortly respond to the mccaw proposal in as full and effective a manner as is <unk> + the lin board said holders may be <unk> by the provision in the mccaw proposal that guarantees private market value after five years for the remaining shares + mccaw has no obligation to purchase and the definition of private market value is uncertain the lin board said + the board added that mccaw would be able to control lin 's operations and could therefore operate lin in a manner which could <unk> its private market value and <unk> to a <unk> <unk> in five years + in national over-the-counter trading lin closed at $ N down $ N + a group of institutional investors in telerate inc. said that dow jones & co. 's $ <unk> offer for the electronic financial information services company is grossly inadequate + in a letter filed with the securities and exchange commission the group which holds about N million telerate shares or about N N of the shares outstanding said at present none of us believes an offer for less than $ N per share would be fair and some believe that $ N is too low + the letter was dated oct. N + in composite trading on the new york stock exchange telerate shares closed yesterday at $ N down N cents a share + dow jones publisher of the wall street journal has launched an $ <unk> or $ N million tender offer to acquire the remaining telerate shares outstanding dow jones owns N N of telerate + telerate has rejected the offer which expires nov. N + the group includes <unk> cos. and various affiliates based in boston wells fargo bank san francisco the california public employees retirement system sacramento calif. and t. rowe price associates inc. baltimore + among other issues the group 's letter said it has concerns as to whether dow jones 's offer meets the applicable requirements of procedural fairness + a spokesman for dow jones said he had n't seen the group 's filing but added obviously dow jones <unk> with their conclusions + our offer is to buy any and all shares tendered at $ N a share + u.s. trade representative carla hills said the first <unk> panel set up under the <unk> free trade agreement has ruled that canada 's restrictions on exports of pacific <unk> and <unk> violate the accord + mrs. hills said the u.s. and canada have until nov. N to resolve the dispute + if a solution is n't reached by then she said the u.s. would have the right to suspend some trade concessions to canada equivalent in value to the losses suffered by u.s. <unk> companies in alaska and the pacific northwest + however in <unk> canadian trade minister john <unk> said the <unk> panel accepted the legitimacy of canada 's position on the use of these landing requirements to <unk> and manage these important <unk> + questioned about the <unk> <unk> in the u.s. and canadian government views of the panel 's report an aide for mrs. hills said the panel had clearly ruled that the canadian trade restrictions are illegal + the u.s. trade representative declined to put a dollar estimate on the losses resulting from the canadian export restrictions + canada initially had an export prohibition that was replaced by regulations requiring that such fish had to be brought <unk> in british columbia by commercial <unk> prior to export + this action was defended by the canadian government on conservation grounds + mrs. hills said yesterday that the <unk> panel rejected this canadian government argument + we fully expect that canada will comply with the panel 's ruling that the landing requirement also must be ended she said + earlier an international panel set up under the rules of the general agreement on tariffs and trade in geneva determined that the original canadian <unk> restrictions violated gatt rules + mrs. hills said the u.s. wo n't accept any delays after nov. N because u.s. <unk> firms enter into contracts in the fall to purchase the next season 's catch + she said the canadian restrictions must be removed before such contracts are concluded + idle thought + to spend a <unk> idle day when duty calls to pay no <unk> to while the precious hours away character is what you need + may <unk> + <unk> + the guy who throws an <unk> <unk> his receiver <unk> should somehow be advised that we at home can read his <unk> + dick <unk> + <unk> corp. said it completed a restructuring agreement previously agreed to by the federal deposit insurance corp. creditor banks and subordinated debenture holders + the plan would permit the bank holding company to retire its bank and debenture obligations through exchanges of cash and equity + the fdic which in N provided $ N million in <unk> assistance to <unk> 's bank of oklahoma <unk> unit will continue to maintain $ N million in preferred stock in the <unk> bank unit + in exchange for the other $ N million the fdic will receive additional warrants <unk> it to buy N N of <unk> 's common stock outstanding up from the N N option the fdic received under terms of the N capital <unk> + in exchange for the $ N million they are owed creditor banks will receive N million shares of <unk> common stock and the proceeds from the future sales of four subsidiary banks to private buyers the bank holding company said + also under the agreement debenture holders will get one million shares of common stock in exchange for $ N million in debentures and holders of <unk> 's series a preferred stock will receive N shares of common stock for every share of preferred they own the company said + bear stearns 's chief economist lawrence <unk> in the sept. N issue of the firm 's global <unk> + were it true that a weak currency <unk> the way for trade surpluses then presumably argentina would be the center of today 's global economy + bsn corp. said it will begin an offer tomorrow to exchange up to one million of its common shares and all of its $ N million in N N N convertible debentures due N for a package of new debt and common stock warrants + under terms of the offer the sporting goods maker will swap $ N face amount of N N N subordinated notes due N and one warrant for each common share + each warrant allows the holder to buy one bsn share for $ N a share at any time over the next seven years + bsn currently has N million common shares outstanding + bsn also is offering $ N face amount of new notes and N <unk> warrants for each $ N face amount of its convertible debt outstanding + the company said it can redeem the warrants at its option for $ N each + the offer is n't contingent on a certain amount of debt or stock being exchanged + bsn said it is making the offer to shrink its capital and increase shareholder value + if all the bondholders and holders of one million common shares accept the offer bsn will increase its debt by $ N million but it also will recognize a $ N million gain from retiring the old debt said michael j. blumenfeld president + we have sufficient cash flow to handle that he said + the offers are scheduled to expire in <unk> to late november + merrill lynch & co. 's net income dropped N N while bear stearns cos. posted a N N gain in net and painewebber group inc. 's profit fell but would have risen without a special gain a year ago + at merrill lynch <unk> net was $ N million or N cents a share down from $ N million or N cents a share a year ago + total revenue reached $ N billion up N N from $ N billion + the firm 's drop in net reflected weaker revenue in transactions for its own account a decline of N N to $ N million on reduced revenue from trading fixed-income securities + investment banking revenue fell N N to $ N million on fewer equity and municipal <unk> + merrill lynch 's commission revenue grew N N however to $ N million on higher share prices and volume and on strong sales of mutual funds + revenue derived from interest and dividends jumped N N to $ N billion + <unk> fee revenue grew N N to $ N million + the brokerage also reported a loss of $ N million from the discontinued operations and disposal of its fine homes international limited partnership real-estate subsidiary + bear stearns said net in the first quarter ended sept. N reached $ N million or N cents a share from $ N million or N cents a share in the year-earlier quarter + gross revenue rose N N to $ N million from $ N million + profit from trading for its own account dropped the securities firm said + investment banking revenue climbed N N while commission revenue advanced N N on a stronger retail market + bear stearns is the holding company for bear stearns & co. the investment banking and brokerage firm + in new york stock exchange composite trading yesterday bear stearns shares closed at $ N down N cents + separately painewebber posted net income for the third quarter of $ N million or N cents a share reflecting a broad-based improvement in the company 's core businesses + retail profit surged but the company said it was only a modest <unk> to third-quarter results + a year ago net at the new york investment banking firm was $ N million or N cents a share including a special pretax gain of $ N million from the sale of the company 's interest in national car rental systems inc + revenue was $ N million including net interest down slightly from $ N million + in big board composite trading yesterday painewebber closed at $ N up N cents + <unk> corp. said it signed an agreement with <unk> martin <unk> to purchase its headquarters building the columbia <unk> center for $ N million + purchase of the <unk> structure is subject to execution of a definitive agreement approval by the boards of <unk> and its parent company bankamerica corp. and approval by regulators + the market upheaval apparently has n't triggered any cash crunch yet + individual investors investment firms and arbitragers who speculate in the stocks of takeover candidates can suffer liquidity and payment problems when stocks dive those investors often borrow heavily to buy their holdings and use the stocks as collateral for loans + but several large banks said yesterday they detected no signs of unusual demand for credit that would signal such difficulties + we 're seeing nothing out of the ordinary said one official at a top N bank + that 's good news because we all <unk> in this water + added another executive at a big bank we were all a little <unk> over the weekend trying to forecast what would happen monday but it 's been very quiet + now as for tomorrow hell who knows + what happened friday shows that financial markets are not yet sufficiently <unk> to handle another <unk> in prices + no <unk> with systems and procedures will ever prevent markets from suffering a panic wave of selling + but markets can operate with greater or lesser efficiency + after the N plunge markets agreed that it would be <unk> to halt trading whenever panic conditions arose + the new york stock exchange adopted two specific circuit breakers if the dow jones index falls N points in a day the exchange will halt trading for one hour if the decline hits N points the exchange will close for an additional two hours + the rationale is that an <unk> of trading will allow investors to reconsider their strategies calm sellers and lead buyers to enter the market at indicated new price levels + it is impossible to know whether that theory is realistic + a temporary <unk> of trading may indeed discourage a selling panic from feeding on itself + but there is also the possibility that <unk> down markets will intensify fears and cause an even more abrupt slide in prices + what happened friday was the worst of all <unk> + the futures exchanges followed their own <unk> circuit breakers and shut down at about N p.m. for N minutes after the standard & poor 's N stock index had fallen N points or about N points on the dow jones index + options markets stopped trading in many securities + the new york stock exchange under its own rules remained open + with nowhere else to go sellers and particularly program traders focused all their selling on the new york stock exchange + as liquidity on that market weakened prices fell sharply + had the futures and options markets been open additional liquidity would have been provided and the decline most probably would have been less intense + at N after intense telephone negotiations between the trading markets and washington the futures exchanges reopened + futures trading however was halted altogether at N after the futures markets had dropped an additional N points which is the daily limit for price declines + at this point the options markets also shut down and once more left all sales to be handled by the new york stock exchange + it is time to recognize that the new york stock exchange the futures markets and the options markets though <unk> separate have actually become so closely <unk> as to constitute one market effectively + traders can vary their strategies and execute their orders in any one of them + it therefore makes no sense for each market to adopt different circuit breakers + to achieve maximum liquidity and minimize price volatility either all markets should be open to trading or none + <unk> circuit breakers would not have halted the slide in prices on friday but they probably would have made for <unk> less volatile executions + it 's time for the exchanges and the securities and exchange commission to agree on joint conditions for <unk> trading or staying open + let 's not have one market shut down for N minutes when the dow declines N points and another shut down for an hour after a <unk> decline + the need for <unk> last-minute telephone negotiations among market officials will disappear once rules are in place that <unk> circuit breakers in all markets + the new circuit breakers if they are to be applied at all will require that futures and options trading continue as long as the new york stock exchange remains open + the rules should be established by agreement of the officials of all affected exchanges acting under the oversight and with the approval of the government regulatory agencies + should the sec and the commodities futures trading commission which with the sec <unk> the chicago stock-index markets be unable to agree the issue may have to be resolved by decision of the treasury secretary + in many ways our financial markets are better prepared today to handle a decline than they were two years ago + the new york stock exchange now has the capacity to handle a volume of nearly a billion shares a day + telephone service has been improved for customers trying to reach their brokers and specialists who i believe should stay despite the <unk> of some post-crash critics have larger capital positions + of course specialists ' actions alone can never prevent a major crack in stock prices + witness the fact that trading in some stocks closed early friday and opened late monday because of an excess of sell orders + but the task of improving market performance remains <unk> + mr. <unk> former chief economist of the new york stock exchange is a professor of economics at pace university 's business school in new york + a unified europe <unk> labor problems and prospects for u.s. firms + the social <unk> worker concerns of the european community 's plan to open its internal borders in N could set the effort off the <unk> if not done reasonably says general electric senior vice president frank doyle + u.s. companies wanting to expand in europe face tough pressure from unions in nations such as west germany which play a big consulting role in management decisions he says + <unk> corp. and <unk> international say unions also wo n't like plant <unk> and needed restructuring which means layoffs + many employers have already begun moving to southern countries such as spain and italy where wages are low and unions are weaker demand for trained labor and managers will rise there <unk> says + pfizer fluor and ge see big ec N <unk> a push for job training and ease in moving and finding workers + <unk> a fan was n't the baltimore <unk> ' fault + so said a federal judge in a case involving two players for the minor league <unk> va. <unk> a baltimore farm team + the players were <unk> by a <unk> during a july N N game with the <unk> <unk> + like its parent that year <unk> was not having a good year the judge said + after the game <unk> lost N <unk> three <unk> in the ninth he noted trouble began + more <unk> in the parking lot the players said led to a fight + the fan said he was <unk> and kicked by one player and that the other broke his <unk> with a baseball bat + the judge dismissed the fan 's suit against the team however ruling the <unk> innocent of <unk> hiring and not responsible for a fight that was outside the players ' employment + proposals arise for coping with the shortage of nurses + an association of academic health centers report urges <unk> nurses from duties that do n't require special skills + it also recommends better retirement and <unk> benefits and <unk> pay on education experience and nurses ' demanding work schedules + but it opposes an american medical association proposal for creating a registered care <unk> as potentially divisive it says the job would <unk> an unwanted new doctor 's <unk> extension + over a third of N hospitals surveyed by consultant <unk> associates use a clinical <unk> <unk> <unk> on performance and education + many also use recruiting bonuses tuition <unk> loan repayment or child-care help + some give <unk> incentives + <unk> <unk> systems signs up nurses for paid travel promising annual income up to $ N and free or subsidized housing + treating employees with respect is crucial for managers says consultant <unk> group after surveys of a million workers + it 's in their top five work values + fully N N of employees who say their bosses treat them with respect but only a third of those who do n't feel respected say they 're satisfied with where they work + <unk> up the digs about N employees of the maryland department of economic and employment development for four months painted walls <unk> and <unk> floors bought plants <unk> windows and <unk> and hung pictures at the agency 's baltimore office + the N hours of work will save the state $ N + curbing wage boosts will get high priority again in N collective bargaining a bureau of national affairs survey of N companies with <unk> <unk> next year indicates + despite <unk> warnings N N aim for <unk> wage increases of under N N and N N say they 'd try to replace workers if struck or would consider it + temporary workers have good <unk> the national association of temporary services says its survey of N such employees shows N N with more than a high-school education and N N with college degrees + about N N have retired from a full-time job while N N were asked to stay on full time + <unk> losses rise but they 're often covered by employers + but they search for ways to limit the damage + a third of N companies surveyed by the employee relocation council report a rise in N sales losses over N + about N N reimburse for all or some losses + since N more companies give <unk> aid as many real-estate values <unk> the council says + rjr nabisco pays up to $ N of losses including improvements + <unk> wo n't ensure loss coverage but will prevent a catastrophic loss it has given some employees the full purchase price when values fell from concern over dangers posed by a disposal site + federal express dow chemical ford and national city corp. will buy the home or let the worker sell to an outside firm but usually wo n't cover a loss + since N firms offering <unk> house <unk> to deter <unk> rose to N N of those the council polled from N N + the <unk> the national academy of engineering gives two <unk> of the semiconductor <unk> a $ N achievement award + now that 's <unk> letter carriers union president vincent <unk> <unk> philadelphia <unk> charles james of <unk> century <unk> management tactics + yesterday was in the words of new york stock exchange chairman john j. phelan jr. just your reasonably normal N <unk> up <unk> day + when it was all over and stocks had staged a huge recovery big board officials were <unk> about how well the day had gone + they said the exchange 's trading procedures personnel equipment and links with other exchanges could n't have performed better + we had no operating problems at all mr. phelan said after the market closed + all the things that we set up to slow down the process to let people know that the market was in an extreme position worked extremely well + prices for the N million shares that changed hands during the session were carried on the exchange 's trading tape with barely a delay officials said + while reaching blockbuster <unk> yesterday the volume was still well within the N <unk> capacity that the exchange has said it can handle daily since <unk> up its computers after the october N crash + the so-called circuit breakers devised by the big board and the chicago mercantile exchange to <unk> free falls in stock and futures prices were n't triggered yesterday because the markets were higher for most of the day + despite traders ' complaints mr. phelan said the links with the chicago futures market worked as planned in friday 's rout to provide a <unk> period + of greater help the big board chairman said was the natural circuit breaker of the weekend that provided a breathing period that brought <unk> back to the market + chicken chains <unk> by loss of customers + fast-food chicken chains faced with a worsening business slump are struggling to hatch some new marketing strategies + the crest report which tracks consumer purchases says customer traffic at chicken restaurants fell N N in the second quarter while the overall fast-food customer count was down N N + chicken business is off largely because of more competition from <unk> convenience food <unk> pizza and other <unk> fare says a spokesman for the report a publication of <unk> group a market research firm in port washington n.y + the loss of more customers is the latest in a string of problems + church 's fried chicken inc. and <unk> 's famous fried chicken inc. which have merged are still troubled by <unk> restaurant locations + chicken chains also are feeling more pressure from mcdonald 's corp. which introduced its <unk> <unk> this year and recently tested the sale of individual pieces of chicken + new management at kentucky fried chicken a unit of pepsico inc. has fought back with new medium and large chicken <unk> for the lunch crowd + and the chain is testing products that are n't fried such as <unk> chicken to try to win <unk> consumers + kentucky fried chicken also is testing <unk> of chicken which could be a hit with <unk> <unk> + but some fast-food industry analysts say problems with keeping chicken warm and fresh must be solved first + a kentucky fried chicken spokesman however disputed the notion that the delivery service experienced problems in some markets where testing has been discontinued + he says the test is continuing in chicago columbus ohio and a few other cities + the advertising industry is <unk> with rumors that kentucky fried chicken will drop young & rubicam and seek a new ad agency + but the company declines to comment + <unk> goldman a painewebber inc. analyst predicts kentucky fried chicken will post an N N drop in N net income + they 've been <unk> he says but they 'll have to become more aggressive + reluctant advertisers try <unk> spots + call it <unk> + pittsburgh consultant david bear is selling a soft approach to clients who want exposure yet <unk> <unk> ads + his <unk> <unk> radio spots that offer helpful hints + the only plug for the sponsor is a brief mention at the end of the spot + the messages resemble the business <unk> a daily <unk> of travel tips developed by mr. bear and sponsored by travel agencies in several major cities + new <unk> include burt hill <unk> <unk> associates a butler pa. architectural firm + its radio series features such spots as <unk> evening wear for urban structures and building a place to park + a harder sell says john <unk> the firm 's president would <unk> from the profession + hospitals have signed up to use the messages to promote <unk> and equitable gas co. is considering the format to offer energy tips to consumers + but such spots can be too soft + there 's always a risk of lost messages says john <unk> chairman of <unk> advertising usa which created similar radio spots for pittsburgh national bank + it 's a question of how much credibility you gain for the possible loss of recognition + retailer sees <unk> in environmental push + here 's a retailer that 's getting tough in the push for environmentally safe packaging and products + big bear supermarkets inc. a grocery chain based in san diego plans to display shelf cards and distribute <unk> recommending products deemed safe for the environment + the choices will be based on research by the san diego environmental health coalition and will include products like murphy 's oil soap and other <unk> <unk> + but the chain is quickly <unk> the <unk> of such <unk> + for example it recommends <unk> <unk> detergent and puts <unk> on its environmentally safe list + that does n't <unk> procter & gamble co. maker of cascade <unk> detergent + a company spokesman questioned the <unk> of the list noting that <unk> is present in all major <unk> <unk> + in fact <unk> bros. confirms that its <unk> brand does contain <unk> <unk> even though it is n't listed on the label for the <unk> version + thomas g. <unk> big bear 's executive vice president said the chain is still reviewing its product list to avoid such problems + our intent is to promote the best alternative he says + and it 's important that we be accurate + but in the end customers ' wishes are what will prevail + big bear does n't care for disposable <unk> which are n't <unk> + yet parents demand them + says mr. <unk> we 'll still be forced to sell items we might not <unk> agree with + odds and ends + <unk> does count at least in the grocery store + a study by <unk> 's <unk> marketing research shows soap sales climbed N N when bars were neatly <unk> on shelves instead of dumped in a wire basket + which celebrity <unk> are most <unk> + for the third year in a row consumers voted bill cosby first and james <unk> second in <unk> as spokesmen in tv commercials according to video <unk> tests new york + michael j. fox replaced bruce <unk> in third place <unk> placed fourth for the second time + health and human services secretary louis sullivan has chosen <unk> novello to be the next surgeon general bush administration officials said + if she is <unk> by president bush and confirmed by the senate dr. novello would succeed c. <unk> <unk> who rattled liberals and conservatives alike with his outspoken views on a range of health issues + dr. novello an expert on pediatric kidney diseases is deputy director of the national institute of child health and human development + she has also served on several task forces on acquired immune deficiency syndrome + dr. novello 's office said she would n't talk with reporters and it refused to release any information about her + the newsletter medicine & health which first disclosed her selection by dr. sullivan said she is N years old and she studied at the university of puerto rico school of medicine + the continuing series of hud scandals is a <unk> predictable result of pork-barrel politics + nevertheless <unk> such as the national association of home builders nahb continue to pressure capitol hill for more special-interest spending + kent <unk> nahb executive vice president argues that the u.s. faces a <unk> housing crisis reduced <unk> of homes for first-time buyers increased homelessness and lower apartment construction rates that will be very difficult to solve without expanded federal resources + there 's nothing unusual about business groups pushing for more government spending + but the nahb was created in N out of an organization that made its name fighting a <unk> administration proposal to take over all defense housing production + through the years the association has been an active member of the taxpayer 's coalition pushing for such initiatives as the <unk> amendment + yet on matters close to <unk> home + the hud budget has dropped by more than N N since N argues mr. <unk> + we 've taken more than our fair share + i would n't have a problem if other programs had taken a similar hit + but nahb support for subsidies is not related to the current housing crunch over the years the nahb has backed a host of public programs + it once pushed for a national housing production goal set by the federal government and has regularly advanced <unk> housing measures + moreover explains one hud official the nahb remains susceptible to internal pressure from members that specialize in subsidized production + the association is pushing an extensive and expensive <unk> which would substantially boost spending above the current level of more than $ N billion annually + direct federal subsidies for housing construction have proved <unk> expensive in the past and inevitably are <unk> to the benefit of <unk> developers and lobbyists as demonstrated by the ongoing hud scandal or congressmen + indirect subsidies through the fha for instance are little better + though mr. <unk> says expanding fha lending would result in no cost to the government the mere diversion of funds from other parts of the economy and from other forms of housing such as low-income to the single-family home market would result in a major expense + more important housing programs run by hud the va and <unk> are <unk> in red ink + the fha alone lost $ N billion in fiscal N the government 's equity in the agency essentially its reserve fund fell to minus $ N billion + the federal government has had to pump in $ N billion into the va housing program since N to keep the fund afloat and the va requested an additional $ N million for the fiscal year just ended + all told the federal government already guarantees more than $ N billion of mortgages + in its <unk> produced publication where will our children live the nahb does acknowledge that of course the full measure of housing <unk> can not be provided by the federal government + it points to the <unk> impact of local government regulation particularly <unk> and building fees which <unk> the price of housing out of the reach of <unk> and <unk> people + but while the nahb has suggested actions that states and <unk> should take to reduce regulatory barriers the association has proposed no activist legislative program comparable to say its detailed request for more federal subsidies to eliminate <unk> controls + the association a majority of whose N members build fewer than N units a year is like many other business <unk> + explains <unk> macdonald of the national taxpayers union it <unk> in two <unk> + the builders like the subsidies but at the same time they tend to be fiscal conservatives in terms of major issues such as the <unk> amendment + unfortunately the organization 's desire for pork tends to override its commitment to overall fiscal responsibility + two years ago when the nahb lobbied for the $ N billion omnibus housing bill the organization basically dropped out of the taxpayers ' coalition says ms. macdonald + as mr. <unk> of the nahb acknowledges government is not going to solve the problem + the real key is to have the economy working and interest rates down + more money for hud will increase the deficit and <unk> the economy more money to municipalities that are <unk> their local housing markets will further <unk> them from the <unk> effects of their policies + is this what the home builders want + mr. <unk> is a <unk> institute fellow + see related story and bills to make wishes come true wsj oct. N N + in an attempt to give new momentum to european community plans for a single currency ec government leaders are likely to agree to set a date for starting formal talks on <unk> the ec 's founding treaty of rome + according to diplomatic sources in brussels most ec leaders agree that talks should begin in the second half of N and will make a declaration on that during a summit meeting in <unk> france on dec. N and N + the only strong opposition to changing the ec treaty comes from british prime minister margaret thatcher who is opposed to creating a single ec currency + but the process of <unk> the <unk> conference does n't require <unk> + setting a date to start treaty negotiations has no legal significance in itself but could be viewed as an important psychological push + french president <unk> mitterrand fought to set a date for the conference during the ec summit in madrid last june but the move was <unk> because of opposition by mrs. thatcher and west german chancellor helmut kohl + diplomatic sources said mr. kohl may now agree to set a date for the conference to make it clear that west germany is still committed to ec unity + the latest <unk> in the equities markets <unk> me of the joke t. boone pickens tells about the guy who was run over by the parade + when asked what went wrong the unfortunate victim replied it was a combination of things + and so it was on gray friday + the grand <unk> of this parade would appear to have been excess leverage + even if that is so however it 's probably the case that no barriers should have been <unk> to stop the <unk> before the end of the rout e + the <unk> began friday afternoon when word spread that the ual buy-out was <unk> + although the <unk> expects to patch together a substitute offer consisting of less cash the failure to get cash from japanese and american banks confirmed a growing fear among arbitragers that the <unk> of <unk> takeover deals is ending + lots of other <unk> made up the parade of course notably a surprisingly large increase in producer prices <unk> federal reserve <unk> and the bush administration 's temporary defeat in trying to lower the capital-gains tax + as usual few favorable reviews were heard for that <unk> <unk> band of program traders although most serious studies suggest they only play the music that others write + what really spooked the <unk> along wall street however was the sudden concern that whatever the reason the pool of debt capital is <unk> up + gray friday reflects a panic mainly by the takeover arbitragers rather than the small investor as their highly <unk> investments in the deal stocks are <unk> by the unexpected <unk> up of the <unk> for deal financing + deal stocks led the market down as they absorbed the heaviest losses + ual which triggered the slide opened monday at $ N down about N N from thursday 's close + amr opened monday at $ N down nearly N N from thursday 's close + both took further hits yesterday + hilton lost N N on friday paramount lost almost N N + a careful look reveals that where deal financing has been secured the target 's stock price was not affected on friday + the multibillion-dollar prospects where the bidder must line up a consortium of banks <unk> issue billions in high-yield debt were where the damage was concentrated + the market for so-called junk bonds has been setting the stage for friday 's dramatic march for several weeks + the growing financial difficulties of recent <unk> restructurings or takeovers such as resorts international integrated resources and campeau 's retailing empire have cast a pall over the entire market for high-yield securities + investors have reacted by ignoring recent efforts to float junk bonds by ohio <unk> and by forcing ramada to postpone indefinitely its planned junk-bond sale and restructuring + as a result high-yield mutual funds have declined across the board and the many firms planning to sell $ N billion in junk bonds before year-end are experiencing anxious times + these are all market excesses putting aside the <unk> boosts that the tax code gives to debt over equity and what we 've seen is the market <unk> them in + of course washington had n't been silent in the days leading up to the debacle and its tendency to <unk> in the leverage equation remains a troublesome prospect but those preliminary steps should n't <unk> us from the basic market <unk> that was at work on friday + if it is correct to find that concerns over corporate debt and lbos caused gray friday what are the implications for policy makers + after all the stock market 's response to the collapse of the ual deal might be taken to confirm the <unk> direction of regulators + is this a case where private markets are <unk> of washington 's <unk> of wall street + absolutely not + to the extent that friday 's sell-off reflected a sudden <unk> of the excesses of leverage the message is that wall street and the private markets are fully capable of imposing the appropriate incentives and sanctions on corporate behavior + the national economic interests are much better served allowing the private interests of bankers and investors be the ultimate judges of the investment quality of various lbo deals and leveraged restructurings + the recent difficulties in the junk-bond markets and the <unk> of bank capital for recent deals <unk> the wisdom of letting the free markets operate + if takeover premiums become excessive if lbo <unk> become too aggressive then the private market will recognize these problems more quickly and accurately than will policy makers and the markets will move with <unk> speed to impose appropriate sanctions + yes the broader exchanges got caught up in the <unk> but they rode the tiger up all year + not surprisingly he sometimes <unk> + the arbitragers and takeover <unk> got killed on gray friday while the besieged managers of prospective targets cheered <unk> + if you identify with the besieged managers you must concede that <unk> and effective relief from the excesses of the takeover market is more likely to come from the marketplace than from washington + if you side with the arbitragers and raiders you clearly have more to fear from private investors than from regulators although the delaware courts should never be underestimated + the truth is washington understands politics better than economics + although the average citizen is probably not <unk> too much from washington 's <unk> war against wall street regarding excessive financial <unk> actual legislation would probably impose considerable harm + any such attempt to <unk> good debt from bad debt or to draw the line at a particular industry such as the airlines is likely to blunt the spur that the proper amount of leverage provides both to equity markets and economic efficiency in general + far better for policy makers to concentrate on the war against drugs panama and the deficit all of them <unk> that seem never to end + mr. <unk> former top economist at the securities and exchange commission teaches at the university of rochester 's simon business school + tokyo share prices rebounded tuesday morning with the nikkei index of N selected stocks rising N points to close the morning session at N + the index slid N points or N N on monday + in the first N minutes of tuesday 's trading the nikkei index soared N points to N + by N a.m. tokyo time the index was up N points to N as investors hailed new york 's overnight rally + monday 's slide came in a relatively calm session that did n't provide much direction for other markets + shares also closed sharply lower across europe particularly in frankfurt although london and a few other markets recovered some ground after stocks began to rebound in new york + other asian and pacific markets had sharper losses than tokyo but the selling wave stopped short of <unk> another market crash + all eyes were on tokyo at the opening because it was the first major market to trade since friday 's 190.58-point plunge on wall street + but rather than set the tone for other markets japan 's major institutional investors chose to remain on the sidelines + still despite the sudden <unk> of stock-market turbulence managers of japanese investment funds said they were n't planning to unload u.s. or european equities + we did n't trade much today as our policy now is to wait and see said a fund manager at <unk> life insurance co + we would like to wait and see until trading goes around through europe and new york + the institutions appeared confident that japanese regulators would step in to ensure orderly trading if necessary and there was considerable speculation during the day that the finance ministry was working behind the scenes to do just that + but in the absence of <unk> trading its presence was never <unk> felt + at the close the nikkei average of N stocks stood at N down N points or N N + the broader tokyo stock price index sank N or N N to N + the day 's decline was generally in line with analysts ' weekend predictions + declining issues <unk> advancers N + but volume was thin at N million shares compared with N million friday + the market opened sharply lower with the nikkei average down nearly N after N minutes + a midmorning rebound brought it back to show a gain of about N at the end of the morning session but the rally failed in the afternoon and the market closed near the day 's low + the smaller stocks in the tokyo market 's second section also posted their biggest decline of the year + the tokyo stock exchange index for the second section fell N or N N to N + many investors trying to outperform the market 's major indexes have <unk> to these small issues in recent weeks + japanese investors and traders expressed relief that the tokyo market did n't fall more sharply + but its performance did bear some <unk> to events of two years ago during the october N global stock market crash + on oct. N N the friday before the black monday crash the new york market dropped N N and tokyo followed on monday with a N N drop + this time wall street 's plunge of N N friday was followed by yesterday 's N N loss in tokyo + two years ago tokyo 's biggest fall came the day after new york 's N N black monday plunge when the nikkei average fell N N + thus market participants yesterday were looking ahead nervously to wall street 's opening + but in new york yesterday the dow jones industrial average surged N to close at N on heavy volume of N shares although declining issues still outnumbered advancing ones on the broad market + <unk> <unk> a director at yamaichi investment trust & management co. called yesterday 's session a good scenario for japan + now we are looking for the time to place buy orders he said + for us institutional investors the chance for buying has come + <unk> <unk> general manager of the investment research department at <unk> trust & banking co. also was optimistic + he described friday 's plunge in the u.s. as a fleeting event resulting in part from excessive merger and acquisition activity + unless there is a panic this is the best time to buy as was the case two years ago he said + those shares which had posted gains on <unk> speculation were dashed with cold water but as far as major stocks are concerned there is n't much impact + other fund managers were similarly <unk> + we have no plans to adjust our asset allocation in foreign equities said <unk> <unk> chief portfolio manager in the pension fund management department at <unk> trust & banking co + he said friday 's wall street decline was well within the range of volatility that <unk> trust plans for when it charts its overseas investment strategy + among other asian and pacific markets malaysia and singapore had the biggest losses with the kuala lumpur composite index in malaysia falling N N and singapore 's <unk> times industrial index down N N + major indexes declined more than N N in australia and new zealand and N N in hong kong + <unk> manila seoul taipei and <unk> escaped with slightly smaller losses + brokers and fund managers said the region 's markets were reacting to friday 's wall street plunge even though that decline was due to local factors such as failed corporate buy-outs and a deteriorating junk-bond market + it 's pure psychology said william <unk> <unk> an account executive for drexel burnham lambert <unk> ltd. in hong kong + markets in this region are n't so geared to leveraged buy-outs and their economies generally are in good shape but there 's no doubt that asia is still following america 's lead + several analysts said malaysia and singapore had the biggest losses because they are relatively open to rapid cash flows + hong kong is the region 's next most open market but many foreign investors have been staying away from it since it plunged in june amid political turmoil in china + singapore took the hit because when people want to get out they tend to go where the liquidity is said elizabeth hambrecht a regional analyst with baring securities hong kong ltd + she pointed out that even after monday 's N N decline the <unk> times index is up N N this year so investors who <unk> out generally did so profitably + similarly kuala lumpur 's composite index yesterday ended N N above its N close + in hong kong the hang seng index fell N to finish at N + trading was heavy at about one billion shares compared with N million friday + but the session was orderly in contrast to the market 's four-day <unk> after the N crash + richard <unk> a director at hong <unk> baring international fund managers ltd. said the market probably has n't hit bottom yet but is close + if new york does n't collapse i see maybe another N N on the downside not counting the risk of bad news out of china he said + in australia sydney 's all <unk> index closed at N down N N its biggest drop since october N + but volume rose only to N million shares from N million friday + <unk> <unk> an analyst at brokerage firm <unk> <unk> & young ltd. described the market 's performance as <unk> as investors fled to <unk> australian stocks and <unk> entrepreneurial companies they perceived as having any takeover premium built into the price + london 's financial times-stock exchange 100-share index the most closely watched market barometer ended at its intraday high of N down N or N N + at its low shortly before wall street opened it was off more than N points + the financial times 30-share index closed N points lower at N + volume more than doubled to N million shares from N million friday + prices on the frankfurt stock exchange tumbled in heavy trading + the decline in the german stock index of N points or N N to N was the frankfurt market 's <unk> fall ever + retail investors dumped holdings on a massive scale pushing some blue-chip shares down as much as N N + analysts cited memories of two years ago when many small investors held on to their shares after the october crash but the west german market continued to decline <unk> for the next three months + here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva + to make them directly comparable each index is based on the close of N equaling N + the percentage change is since year-end + frank lloyd wright is reported to have said once that if you <unk> the world on its side everything loose would end up in california + we 've always thought that mr. wright underestimated california 's <unk> but maybe the state 's <unk> <unk> are starting to <unk> the forces that made it such a significant place + what else is one to make of the <unk> <unk> initiative just proposed by several major environmental groups and organized by the state 's attorney general + if passed by the voters the recently announced initiative would phase out major pesticides reduce carbon dioxide emissions by N N ban new offshore drilling ban chemicals thought to <unk> the ozone layer and create a new state environmental officer armed with a $ N million budget to sue any firm or agency he thinks is being too <unk> + the initiative is based largely on the <unk> of the green lobby the sierra club the league of conservation voters the natural resources defense council the national <unk> campaign and the citizens for a better environment + <unk> the environmental defense fund is having nothing to do with this one + not only californians but all americans would pay if this thing passed + the initiative bars the sale of any crops in california that do n't meet the initiative 's standards + kansas wheat farmers and florida fruit growers would have to adjust or give up the california market + in other words california is <unk> to take control of the nation 's farm policy + as usual the green lobby 's proposal is <unk> from scientific reality + consider the <unk> provision + the proposed initiative would mandate a reduction of carbon dioxide of N N + even if one buys into the whole greenhouse theory it is <unk> that reductions in a single state could have any impact on what is billed as a global problem + but if rational science and economics have nothing to do with the new environment initiative what is going on + the first place to look under these circumstances is at the ways in which the sponsors themselves will benefit + the key here is the <unk> of state attorney general john van de <unk> + he 's running for governor + mr. van de <unk> is the one who collected the plans from the various radical environmental groups and <unk> them into a single <unk> initiative to be placed on the ballot for election on nov. N N + that 's also the day of the gubernatorial election + the initiative seems to have been <unk> to include all the hot issues that set off the wealthy hollywood <unk> who <unk> money + and it allows mr. van de <unk> to get around campaign spending limits + he can spend the legal maximum for his campaign all the spending for the van de <unk> initiative on which there are no limits is <unk> + this initiative is being labeled the big green but maybe it should be called the big <unk> + the republican candidate sen. pete wilson is playing the initiative <unk> game too <unk> his own crime initiative + while it is possible that the big green initiative will be ruled unconstitutional it is of course <unk> that in modern california it could slide through + this is the state that recently passed the <unk> N <unk> initiative + if this new proposal ever does become law the green lobby will benefit directly + the initiative creates a free floating state environmental officer to sue companies or government agencies that do things he does n't like + that means the <unk> and such groups no longer would have to spend as much money on litigation taxpayers would bear the cost + mr. van de <unk> and his allies may be hoping that the environment is such a mom and <unk> issue among certain segments of california 's population now that almost any collection of <unk> <unk> nonsense can pass under its <unk> + of course the state 's liberals are not yet a nation <unk> themselves + george bush for example may decide that he does n't want to be the president who lost control of interstate commerce to an attorney general from california + and some other segments of california 's political and media culture may yet start to point out that the initiative would impose significant costs on the state 's less affluent citizens in the form of higher food prices and lost jobs + this <unk> initiative will help california define itself for the future either as a state still <unk> to economic and scientific reality or as one being led to wherever its <unk> activists want to take it + first there was a death watch + then <unk> + spurred by waves of large-scale buying in blue-chip stocks the dow jones industrial average rallied yesterday and erased about a half of friday 's 190.58-point plunge gaining N to N + it was the <unk> advance for the average of N blue chips on <unk> new york stock exchange volume of N shares the highest since the days after the N crash + while the advance cheered investors who feared a <unk> crash would occur yesterday it was strictly a <unk> rally fed by huge buying by bargain-hunting institutions and program traders + a troubling sign declining stocks on the big board outnumbered advancers N to N and the over-the-counter market that includes many smaller stocks suffered aftershocks of friday 's late big board plunge + the nasdaq otc index closed down N to N + meanwhile in a divergence in two of the market 's most important indicators the dow industrials ' sister average the <unk> dow jones transportation average tumbled N to N its <unk> decline next to the <unk> fall during the N crash + <unk> plunged on takeover disappointments in two airline stocks ual and amr which each fell more than N N when they reopened for trading yesterday after being suspended friday afternoon + ual the takeover stock at the center of friday 's 190.58-point market plunge fell N N to N N on nearly N million shares + overall this is a <unk> rally but it 's very selective said arthur <unk> jr. a veteran painewebber inc. trader at the big board + everyone was a little concerned about the general <unk> of the rally and failure of the otc market to get into plus territory + it 's just a strange feeling + i do n't think anyone left the place <unk> <unk> + the rally gave <unk> at least for now to the <unk> declaration of big board chairman john j. phelan jr. that friday 's market debacle was an <unk> condition and not a disaster + but to traders it looked like disaster on the N a.m. opening bell + the dow jones industrial average opened down N shortly after N + but most of the N blue-chip stocks in the average including eastman kodak and general motors could n't trade because of the heavy backlog of sell orders left over from friday 's <unk> rout + at N procter & gamble one of the most important dow <unk> of late opened down N N to N + the dow dropped to a quick <unk> loss and to many traders it looked as if stocks were headed for yet another big tumble + more stocks opened over the <unk> half hour as the N big board specialist firms in charge of keeping the market orderly <unk> to find buy orders from major brokerage firms to match the selling flood + then to make matters worse computerized sell programs kicked in <unk> stocks into <unk> losses + there was heavy stock-index arbitrage as traders sold big baskets of stock and bought stock-index futures to profit from the price discrepancies between the two markets + this was a <unk> from friday when standard & poor 's 500-stock index futures had closed at a sharp discount to stocks + the <unk> of the program selling dashed any hopes that some of the big program trading firms would hold off until the market stabilized + they did n't + the dow accelerated its slide losing N in the first N minutes of trading + with program traders seemingly in charge buyers backed away from the market and watched stocks fall + then at N the dow suddenly started to rebound and when it shot upward it did so even faster than the <unk> fall + and this time it was n't just the program traders who were responsible + all the selling had pushed stocks to such cheap values that big investment banks and major money management firms started buying stocks heavily + the program traders were in there too of course + but according to one trader the programmers did n't look as dominant on the upside as on the downside because there was also a lot of bargain-hunting by institutions + <unk> m. <unk> director of the new jersey division of investment which oversees $ N billion in investments said the first thing we did was to double our orders yesterday morning + with the market down like this we 'll probably take another $ N million and put it in the market + trading in walt disney co. particularly caught traders ' eyes + according to big board officials disney had one of the biggest <unk> imbalances on friday it was one of the seven stocks that could n't finish trading that day + the stock opened late at N N down N N + but then it shot upward N N as goldman sachs & co. stepped in and bought traders said + however disney specialist robert <unk> said i would be surprised if goldman represented N N of the opening volume + around wall street trading desks were relieved that they could at least play the market yesterday in contrast to friday 's gridlock + at donaldson lufkin & jenrette inc. head equity trader <unk> <unk> said i think the opening was <unk> + it was orderly + we put some orders together + there was n't a lot of panic selling either domestically or internationally + not like friday where they just took the market apart + still the market had n't yet crossed into positive territory and traders were <unk> + but in another dramatic burst the dow tacked on N points in five minutes and at N the index showed a gain of N + on the big board floor and on trading desks traders <unk> their approval + <unk> <unk> peck a trader in shearson lehman hutton inc. 's otc department i tell you this market acts healthy + around him scores of traders seemed to get a burst of energy their boss broke out bottles of <unk> water to cool them off + among big board specialists the cry was pull your offers meaning that specialists soon expected to get higher prices for their shares + it was <unk> on the upside said one big board specialist + but not everybody was making money + the <unk> on the chicago board options exchange the nation 's major options market was heavy after the trading in s&p N stock-index options was halted friday + many market makers in the s&p N index options contract had bullish positions friday and when the shutdown came they were frozen with huge losses + over the weekend clearing firms told the chicago market makers to get out of their positions at any cost monday morning + they were absolutely killed <unk> said one chicago-based options trader + some traders said that the closely watched major market index whose N stocks mimic the dow industrials did n't lead yesterday 's big rally + james <unk> a partner at specialist <unk> & <unk> said the difference between today and two years ago terrible tuesday oct. N N is that then we needed a <unk> to go into the major market index spend $ N million and get the program rally started + this time institutions saw the programs coming and backed away and backed away + then when the market was at a technical level to buy they came in with a <unk> + however according to one analyst the timing of major market index futures buying just before the turnaround was similar to that of terrible tuesday + futures were pulling the stock market higher said donald <unk> head of stock-index futures research at prudential-bache securities inc + although the big board 's specialist firms struggled through another highly volatile trading session their performance yesterday was better than during friday 's <unk> chaos according to traders and brokers who work with them + specialists were criticized for their inability to maintain orderly markets during the friday plunge + but yesterday even with halts in such major blue-chip stocks as merck we expected the halts and it was n't too bad said donaldson 's mr. <unk> who had been critical of the specialists ' performance on friday + according to a big board official while many stocks opened late there were subsequent trading halts in only three issues amr merck and <unk> energy + merck is one of the most important stocks in the major market index + no sector of the market has been <unk> during the past two days ' gyrations + yet from the dow industrials ' high on oct. N through friday 's plunge relatively good performances have been turned in by real-estate utilities precious metals and life insurance stocks + and yesterday the top performing industry group was oil field equipment issues + for example <unk> jumped N N to N <unk> rose N N to N N and baker hughes rose N N to N + because of the ual and amr <unk> airlines were the weakest sector of the market yesterday + philip morris was the big board 's most active issue rising N N to N N on nearly eight million shares + among other major issues coca-cola co. closed up N at N N on N million shares and american telephone & telegraph rose N N to N on nearly N million shares + shares of international business machines which reported earnings yesterday finished at N up N after slipping below N during friday 's session for the first time in five years + shares of three brokerage firms rose after they reported earnings + merrill lynch added N N to N painewebber rose N to N N and bear stearns rose N to N N + federal national mortgage association a recently hot stock climbed N to N on nearly N million shares + at a news conference after the close of trading yesterday the big board 's mr. phelan and other exchange officials praised the performance of their computers and personnel + mr. phelan said that program trading strategies were n't responsible for triggering friday 's decline despite a jump in the use of the computer-driven strategies in recent months + some N million of the more than N million shares traded in the final N minutes of friday 's session when the plunge in stock prices was concentrated were <unk> he said + program trades make up N N of the exchange 's volume on an average day but despite the increase friday it was certainly not something you would say <unk> the market decline mr. phelan said + mr. phelan expressed relief that the market rebounded yesterday + obviously every time we get this kind of reaction it 's going to make everybody nervous including me he said + he said that exchange officials had conversations with wall street firms throughout the weekend and that all the participants behaved very very <unk> today + meanwhile peter dapuzzo shearson 's head of retail equity trading praised institutional investors in the otc market who were heavy buyers of the nasdaq 's biggest technology issues yesterday amid a flood of selling by other investors + the institutions ca n't be criticized for their behavior mr. dapuzzo said in an interview + it was the opposite of what happened on oct. N + they used their judgment + they did n't panic during the first round of selling this morning + instead they bought on weakness and sold into the strength which kept the market orderly + maybe they learned from experience + mr. phelan said the performance of specialists during friday 's plunge was <unk> because out of N big board common stocks traded during the day only seven were closed and were n't reopened before the close + they did an excellent job mr. phelan said of the specialists + wall street traders on friday had complained about the trading <unk> + james a. white and <unk> <unk> contributed to this article + west germany 's green party joined its ideological <unk> <unk> <unk> and the <unk> institute in the legal battle to ground the atlantis shuttle and its <unk> galileo probe to jupiter + the <unk> greens wanted a washington federal appeals court to block today 's scheduled <unk> long enough for them to ask the world court to order a permanent cancellation of the $ N billion flight + a <unk> appeals panel yesterday refused to comply though liberal judge pat <unk> went out of her way to deny that this was a <unk> case + of course it was + nasa should now sue for fines against all three <unk> foreign and domestic for bringing this <unk> case + a house-senate conference approved a permanent smoking ban on all domestic airline routes within the continental u.s. and on all flights of six hours or less to alaska and hawaii + the restrictions would cover all but a small percentage of domestic air traffic and represent a major expansion of the current smoking ban on flights of two hours or less + the exemption allowed on longer flights to alaska and hawaii appears to be largely a <unk> <unk> for the traditionally powerful tobacco industry which has found itself increasingly isolated in the face of public pressure in recent years + by a N margin house negotiators initially rejected last night a senate provision covering all domestic flights + but the <unk> compromise was soon agreed to in subsequent discussions + as a practical matter flights from the west coast to hawaii would be covered as they are under the time limit but the language would exempt longer routes beginning for example in chicago or on the east coast + within the senate the ban has had aggressive support from sen. frank <unk> d. n.j. who has used his position as a senate appropriations subcommittee chairman to <unk> votes for the initiative + the measure is attached to the more than $ N billion fiscal N transportation bill within mr. <unk> 's jurisdiction and the final compromise is <unk> with more than $ N million in road projects earmarked by members as well as funds sought by major airports including denver + from the outset the tobacco industry has been uncertain as to what strategy to follow + but the industry retains support in the house leadership through the influence of grower states such as north carolina + majority whip william gray owes a political debt to southern agriculture lawmakers for his rise in the house and the philadelphia democrat used his position in the conference to salvage the exemption from a total ban + although the smoking provision has attracted the most public interest the underlying bill was the subject of <unk> lobbying because of its impact on air transportation and the more mundane but politically important projects of members + in a stark lesson in the power of the appropriations committees the house deliberately killed a handful of projects backed by lawmakers in florida illinois and pennsylvania who had voted against the panel leadership on the house floor + anybody can vote as they want said rep. william lehman d. fla. head of the house conferees + but if you make a request you should support the committee + within the federal aviation administration the final bill promises to increase spending for facilities and equipment by more than N N from last year and total operations would rise to $ N billion a N N boost + the facilities account includes $ N million for denver 's ambitious new airport and the competition for these funds created shifting alliances between urban lawmakers representing established airports in philadelphia and michigan and the major carriers to denver united and continental + leery of the costs and critics say competition the airlines have sought to gain leverage over the city of denver + texas air corp. which owns continental and the air transport association were prominent in the lobbying + the industry sought to impose conditions that would have delayed funds for the project until denver and the airlines had agreed to leases for N N of the gates + but this was rejected in favor of much <unk> language <unk> the transportation department to review the costs of the first phase expected to cost about $ N billion + though smaller in total dollars the conference agreed to preserve an estimated $ N million in controversial subsidies to carriers serving rural or isolated airports + the sum is more than double what the house had approved for the program but the list of qualified airports would be cut by N under new distance requirements and limits on the level of subsidy + congress previously cut six airports this year + the impact of the changes is to eliminate many of the most excessive cases where the government has been paying more than $ N for each passenger in subsidies + among rail and highway accounts the agreement provides $ N million for <unk> including $ N million for capital improvements + and <unk> grants for mass transit would be effectively frozen at $ N billion or $ N million more than last fiscal year + enjoying several blockbuster movie hits including batman los angeles-based guber-peters entertainment co. reported earnings for the first quarter ended aug. N of $ N million or N cents a share compared with a year-earlier loss + sony corp. which has offered to acquire the <unk> company is seeking to free its top executives peter guber and jon peters from an exclusive agreement with time warner inc. 's warner communications inc. so they can run columbia pictures entertainment inc + sony two weeks ago agreed to acquire columbia for $ N billion or $ N a share + warner sued sony and guber-peters late last week sony and guber-peters have <unk> charging warner with attempting to interfere in sony 's acquisition of the two companies + guber-peters 's net income in the latest quarter compared with a net loss of $ N million or N cents a share in the year-earlier period + the company said revenue rose N N to $ N million from $ N million reflecting the success of its movies <unk> in the <unk> and <unk> as well as the <unk> <unk> batman + a group including jon m. <unk> of salt lake city said it boosted its stake in <unk> chemical corp. to N N of the the common shares outstanding + as previously reported <unk> holdings corp. owned by jon m. <unk> and other members of his family proposed that <unk> corp. an affiliate of <unk> holdings acquire <unk> in a friendly transaction for $ <unk> in cash or $ N million + in a filing with the securities and exchange commission the <unk> group said it controls N <unk> common shares including N shares bought from aug. N to oct. N for $ N to $ N per share + officials at <unk> based in pittsburgh declined comment + congress has been critical of the bush administration for not sending enough aid to poland so it is getting ready to send its own version of a care package + last month the senate voted to send a delegation of congressional staffers to poland to assist its legislature the <unk> in democratic procedures + senator pete <unk> calls this effort the first gift of democracy + the poles might do better to view it as a <unk> horse + it is the vast shadow government of N congressional staffers that helps create such legislative <unk> as the N page <unk> reconciliation bill that claimed to be the budget of the united states + maybe after the staffers explain their work to the poles they 'd be willing to come back and do the same for the american people + <unk> <unk> plc a financially troubled irish maker of fine crystal and <unk> china reported that its pretax loss for the first six months widened to N million irish punts $ N million from N million irish punts a year earlier + the results for the half were worse than market expectations which suggested an interim loss of around N million irish punts + in a sharply weaker london market yesterday <unk> shares were down N pence at N pence N cents + the company reported a loss after taxation and minority interests of N million irish punts compared with a loss of N million irish punts for the year-earlier period + there were n't any extraordinary items + sales for the total group rose N N to N million irish punts compared with N million irish punts a year ago + <unk> has decided against paying an interim dividend + <unk> said the appointment of a new management team and the signing of a comprehensive labor agreement are expected to enhance the company 's long-term prospects + the sudden flight to quality that triggered friday 's explosive <unk> rally was reversed yesterday in a flight from quality rout + the setback in which treasury bond prices plummeted reflected a rebound in the stock market and profit-taking + it was a pretty wild day + our markets were closely tied to the stock market said joel <unk> manager of trading at smith barney harris upham & co + friday 's flight to quality was no longer needed once the stock market found its <unk> he said + some fixed-income investors had expected a further drop in stock prices after the nearly <unk> drop in the dow jones industrial average on friday + that caused investors to <unk> stocks and buy high-quality treasury bonds which are safer than other types of securities + but when stocks began to climb instead prices of treasury bonds declined + contributing to the selling pressure were <unk> by several investment firms advising clients to boost their stock holdings and reduce the size of their cash or bond portfolios + among the firms were merrill lynch & co. and dean witter reynolds inc + the bond market seemed to ignore evidence that the federal reserve eased credit conditions slightly by allowing the federal funds rate to <unk> as low as N N N + the closely watched rate on federal funds or overnight loans between banks slid to about N N N last week down from its perceived target level of about N N + the rate is considered an early signal of changes in fed policy + traders said yesterday 's modest easing did n't stir much enthusiasm because it had been widely expected + in fact some economists contend that the latest easing started last week + others note that some investors were disappointed because they had expected a more aggressive easing + the treasury 's benchmark 30-year bond ended about N N points lower or down about $ N for each $ N face amount + the reversal was even more evident among <unk> treasury securities + after treasury bill rates plummeted as much as N percentage point on friday they gave back <unk> of that amount yesterday + the bond-equivalent yield on three-month treasury bills for example was quoted late yesterday at N N compared with N N friday + investment-grade corporate bonds mortgage-backed securities and municipal bonds also fell + but prices of junk bonds which were battered friday in near standstill trading rebounded to post small gains after a volatile trading session + junk bonds opened as much as four points lower but staged a modest comeback as stock prices firmed + some traders said the high-yield market was helped by active institutional buying + in particular they said firms such as first boston corp. and drexel burnham lambert inc. began making a market in junk issues early in the session when prices hit severely depressed levels + i think the willingness of securities companies to make markets for high-yield issues improved the sentiment for junk bonds said john <unk> an economist at moody 's investors service inc + u.s. treasury bonds were higher in overnight trading in japan which opened at about N p.m. edt + the benchmark 30-year bond for example rose one point in early japanese trading in reaction to a quick <unk> drop in the tokyo stock market + but as japanese stocks rebounded treasurys retreated and ended just modestly higher + many u.s. trading operations wanting to keep a <unk> eye on japanese trading as an indication of where u.s. trading would begin were fully <unk> during the tokyo trading session + most of the action was during the night session said michael moore trading manager at continental bank + jay <unk> who often trades overnight for capital insight inc. beverly hills calif. said trading in tokyo was very active but highly volatile + we went down N point in N minutes right before lunch then after lunch we went up N point in N minutes he said + in tokyo trading is halted during <unk> + tokyo 's market turned out to be a bad bellwether for u.s. trading + when the market opened here bonds prices fell as the stock market regained strength + the bond market 's focus on stock activity was so strong yesterday that it <unk> today 's slate of economic data which includes the government 's report on august u.s. merchandise trade and september industrial production + industrial production is expected to have declined N N according to a consensus of economists surveyed by dow jones capital markets report + the august trade deficit is expected to have widened to $ N billion from $ N billion in july + a widening of that magnitude said one new york trader is not a favorable number + it could do damage to us + meanwhile agency supply is expected to weigh heavily on the market today when the federal home loan bank prices a $ N billion offering of one-year three-year five-year and 10-year maturities + tomorrow the resolution funding corp. will provide details of its first bond issue which is expected to total between $ N billion and $ N billion and carry a maturity greater than N years + resolution funding is a division of resolution trust corp. the new federal agency created to bail out the nation 's troubled thrifts + and this week the tennessee valley authority plans to price a $ N billion offering its first public debt borrowing in N years + there 's lots of supply the new york trader said + we have a couple or three tough weeks coming + treasury securities + prices of treasury bonds tumbled in moderate to active trading + the benchmark 30-year treasury bond was quoted late at a price of N N compared with a closing price of N N friday + the yield on the benchmark issue rose to N N from N N + the latest 10-year notes were quoted late at N N for a yield of N N compared with N N to yield N N + short-term interest rates fell yesterday at the government 's weekly treasury bill auction + the average discount rate on new three-month treasury bills was N N the lowest since the average of N N at the auction on oct. N N + the average discount rate was N N on new six-month bills the lowest since the average of N N at the auction on july N N + here are auction details + rates are determined by the difference between the purchase price and face value + thus higher bidding narrows the investor 's return while lower bidding widens it + the percentage rates are calculated on a <unk> year while the <unk> yield is based on a <unk> year + both issues are dated oct. N + the 13-week bills mature jan. N N and the 26-week bills mature april N N + corporate issues + investment-grade corporate bonds ended one to N N point lower + there were no new issues + foreign bonds + foreign bonds surged as the dollar weakened against most major currencies + among benchmark issues japan 's no. N N N bond due N ended on brokers screens at N up N point + the yield was N N + west germany 's N N N issue due june N ended at N up N point to yield N N + britain 's N N N bond due N ended N N higher at N N to yield N N while the N N N notes due N rose N to N N to yield N N + mortgage-backed securities + mortgage securities gave up most of friday 's gains as active issues ended N to N point lower + dealers said morning activity was hectic as prices dropped in response to gains in the stock market and losses in treasury securities but trading slowed to moderate levels in the afternoon + government national mortgage association N N securities for november delivery were quoted late yesterday at N N down N from friday N N N securities were down N at N N and N N securities were at N N off N + federal home loan mortgage corp. N N securities were at N N down N + on friday mortgage issues gained as much as N N + late yesterday ginnie mae N N securities were yielding N N to a 12-year average life assumption as the spread above the treasury 10-year note narrowed N percentage point to N + traders said there were some busy dealings in freddie mac and federal national mortgage association securities because underwriters from last week 's heavy slate of real estate mortgage investment <unk> issues moved to gather collateral for new deals + offsetting the <unk> purchases were continued heavy sales by mortgage <unk> which are producing increased amounts of fixed-rate mortgage-backed issues with lower rates + there was no new-issue activity in the derivative market + municipals + rebounding stocks and weaker treasury prices drove municipal bonds N to N point lower in late dealings + the session losses left municipal dollar bonds close to where they were before the 190.58-point drop in the dow jones industrial average friday prompted a capital markets rally + trading was hectic during the morning with players trying to gauge whether equities would continue friday 's free fall or stabilize after a brief spot of weakness + <unk> started the session flat to a touch higher on anticipation of further stock market erosion but bond prices rapidly turned south as it became more clear that a repeat of the october N crash was n't at hand + professionals dominated municipal trading throughout the session + traders said retail investors seemed to be <unk> the sidelines until a measure of volatility is <unk> out of the market + new jersey turnpike authority 's N N issue of N was off N at N N bid yielding N N up N percentage point from late friday + florida board of education 's N N N issue of N was N point weaker at N N bid + the N N N issue of <unk> bridge and tunnel authority of new york due N was off N at N N bid + and <unk> county va. water authority 's N N N issue of N was down N at N N bid + serial bond yields were up about N percentage point + <unk> corp. kansas city mo. said it 's weighing strategic alternatives for its business men 's assurance co. unit and is <unk> possible buyers of the life and health insurance operation + a <unk> spokesman said runaway medical costs have made health insurance a significant challenge and margins also have been <unk> by changes in the mix of life-insurance products consumers now demand + the business men 's assurance unit represented about $ N million of the company 's $ N million in N revenue and the unit 's operating income was about $ N million said the spokesman + <unk> 's investment banker alex brown & sons inc. has been authorized to contact possible buyers for the unit + <unk> transportation ltd. said it raised its stake in <unk> ltd. of <unk> to N N from N N + a spokesman for <unk> declined to disclose the price the toronto transportation and waste services concern paid for the additional shares which he said were acquired over the last couple of weeks + the spokesman said <unk> would n't increase its stake in <unk> beyond N N without a great deal of thought because of british takeover regulations that require a company acquiring more than N N to extend an offer to the rest of the company 's shareholders + <unk> a security services and auctions company trades on london 's stock exchange + <unk> is <unk> by canadian pacific ltd. a montreal transportation resources and industrial holding concern + <unk> co. a japanese maker of video games electronic information systems and playing cards posted a N N unconsolidated surge in pretax profit to N billion yen $ N million from N billion yen $ N million for the fiscal year ended aug. N + sales surged N N to N billion yen from N billion + net income rose N N to N billion yen from N billion + <unk> net fell to N yen from N yen because of expenses and capital adjustments + without detailing specific product <unk> <unk> credited its bullish <unk> in sales including advanced computer games and television entertainment systems to surging <unk> sales in foreign markets + export sales for leisure items alone for instance totaled N billion yen in the N months up from N billion in the previous fiscal year + domestic leisure sales however were lower + hertz corp. of park <unk> n.j. said it retained merrill lynch capital markets to sell its hertz equipment rental corp. unit + there is no pressing need to sell the unit but we are doing it so we can concentrate on our core business <unk> automobiles in the u.s. and abroad said william <unk> hertz 's executive vice president + we are only going to sell at the right price + hertz equipment had operating profit before depreciation of $ N million on revenue of $ N million in N + the closely held hertz corp. had annual revenue of close to $ N billion in N of which $ N billion was contributed by its hertz rent a car operations world-wide + hertz equipment is a major supplier of rental equipment in the u.s. france spain and the <unk> + it supplies commercial and industrial equipment including <unk> <unk> <unk> and electrical equipment <unk> <unk> <unk> and trucks + <unk> inc. reported a net loss of $ N million for the fiscal third quarter ended aug. N + it said the loss resulted from <unk> and introduction costs related to a new medical <unk> equipment system + in the year-earlier quarter the company reported net income of $ N or N cents a share + the manufacturer of <unk> diagnostic systems based in <unk> pa. reported a nine-month net loss of $ N million compared with net income of $ N million or N cents a share for the nine-month period a year earlier + in over-the-counter trading <unk> fell N cents to $ N + <unk> <unk> corp. expects to report third-quarter net of about $ N million or $ N a share down from $ N million or $ N a share a year earlier richard p. simmons chairman and chief executive officer told institutional investors in new york + sales for the <unk> producer of specialty <unk> and other materials fell to about $ N million in the third quarter from $ N million a year earlier he said + he said the third-quarter estimate indicates profit for the nine months of $ N a share almost equal to the full-year N earnings of $ N million or $ N a share + in the first nine months of N net was $ N million or $ N a share + mr. simmons said the third-quarter results reflect continued improvements in productivity and operating margins + he said capital spending next year will rise to about $ N million from about $ N million this year + u.s. banknote co. said it again extended the expiration date of its $ <unk> tender offer for international banknote co. to nov. N + u.s. banknote said it is in negotiations to sell certain facilities which it did n't name to a third party and it needs the extension to try to reach a definitive agreement on the sale + u.s. banknote said it believes the sale if completed apparently would satisfy antitrust issues raised by the u.s. justice department about u.s. banknote 's offer to buy international banknote + both of the new york-based companies print stock certificates and currency + u.s. banknote said there can be no assurance a sale agreement would be concluded + it also said the tender offer would probably have to be extended further to complete financing arrangements + u.s. banknote said citibank extended the expiration date of its commitment for senior secured financing to nov. N + the offer made june N has been extended several times + closely held u.s. banknote offered the $ N a share or $ N million for as many as N million shares or N N of international banknote 's shares outstanding + u.s. banknote said that as of oct. N N million shares or about N N of the fully diluted shares outstanding had been tendered + gitano group inc. said it agreed to buy N N of regatta sport ltd. a closely held apparel maker with the assumption of $ N million of contingent debt + under the terms of the contract new york-based gitano has the option to acquire the remaining N N of regatta a maker of men 's and women 's clothes sold primarily in department stores under certain conditions + that N N is now held by clifford parker regatta 's president and chief executive officer who will continue to manage regatta 's operations under gitano + in N regatta will have sales in excess of $ N million and will show a profit mr. parker said + gitano which makes <unk> apparel sold mainly through mass <unk> like k mart and <unk> said the regatta acquisition will enhance its strategy to expand into department stores + this fall gitano began manufacturing moderately priced clothes aimed at department stores under the <unk> <unk> trademark which gitano recently acquired + enron corp. houston said the sale of preference units of its newly formed enron <unk> partners l.p. master limited partnership subsidiary will result in an <unk> gain in the fourth quarter + in the year-ago quarter the natural gas concern had net income of $ N million or N cents a share on revenue of about $ N billion + those results included a $ N million charge related to the retirement of debt + in a related move enron said it increased the number of the partnership 's units it will offer to N from N + the old and revised numbers both include <unk> provisions + enron said each unit will be priced in the $ <unk> range and will represent about N N of the partnership equity + net proceeds from the offering are expected to be close to $ N million + goldman sachs & co. and drexel burnham lambert inc. are lead underwriters + arthur m. goldberg said he extended his unsolicited tender offer of $ N a share tender offer or $ N million for di giorgio corp. to nov. N + dig acquisition corp. the new jersey investor 's acquisition vehicle said that as of the close of business yesterday N shares had been tendered + including the stake dig already held dig holds a total of about N N of di giorgio 's shares on a fully diluted basis + the offer which also includes common and preferred stock purchase rights was to expire last night at midnight + the new expiration date is the date on which dig 's financing commitments which total about $ N million are to expire + dig is a unit of dig holding corp. a unit of rose partners <unk> + mr. goldberg is the sole general partner in rose partners + in august di giorgio a san francisco food products and building materials marketing and distribution company rejected mr. goldberg 's offer as inadequate + in new york stock exchange composite trading yesterday di giorgio closed at $ N a share down $ N + what does n't belong here + a. <unk> <unk> b. black-and-white <unk> c. radio <unk> shows + if you <unk> black-and-white <unk> you 're right + after years of <unk> into the background <unk> photography is coming back + trendy magazine advertisements feature stark black-and-white photos of hollywood <unk> pitching jeans shoes and liquor + portrait studios accustomed to shooting only in color report a rush to black-and-white portrait orders + and black-and-white photography classes are crowded with students + what 's happening in photography <unk> the popularity of black and white in fashion home <unk> and <unk> + on seventh avenue designers have been advancing the <unk> look with clothing <unk> done entirely in black and white + and classic black-and-white movies are enjoying a comeback on videocassette tapes spurred in part by the backlash against <unk> of old films + the <unk> is <unk> back to black and white says richard <unk> the general manager of eastman kodak co. 's professional photography division + until two years ago sales of black-and-white film had been declining steadily since the 1960s + but last year buoyed by increased use in advertising and other commercial applications sales increased N N and they are expected to jump at least that much again this year + photographic companies are scrambling to tap the <unk> market <unk> some black-and-white product lines and developing new ones + at kodak which largely ignored the market for years black-and-white film sales now account for nearly N N of the company 's $ N billion in film and paper sales annually up from N N three years ago + the rochester n.y. photographic giant recently began marketing <unk> N one of the fastest and most sensitive <unk> films + aimed at commercial <unk> the film can be used in very low light without <unk> quality says donald <unk> of <unk> newsletter + also trying to <unk> a portion of the $ N <unk> industry is <unk> corp. a unit of <unk> ag + <unk> recently signed olympic gold <unk> <unk> <unk> to <unk> a new line of black-and-white paper that 's geared to consumers and will compete directly with kodak 's papers + slated for market by the end of the year the paper could have been introduced a long time ago but the market was n't there then says an <unk> spokesman + the biggest <unk> of the black-and-white revival is likely to be international paper co. 's <unk> division known in the industry for its premium products + sales of <unk> 's four <unk> of black-and-white film this year are <unk> growth in the overall market although the company wo n't say by exactly how much + we hope the trend lasts says <unk> <unk> <unk> 's marketing communications director + why all the interest + for baby boomers who grew up being <unk> in color black and white seems <unk> and exotic + it has an <unk> almost <unk> quality to it says owen b. butler the chairman of the applied photography department at rochester institute of technology + you can shift out of reality with black and white he adds + such features have been especially attractive to professional <unk> and marketing executives who have been steadily increasing their use of black and white in advertising + processing of black-and-white commercial film jumped N N last year to N million rolls + consider gap inc. whose latest ad campaign features black-and-white shots of hollywood stars artists and other well-known <unk> <unk> the retailer 's jeans and <unk> + richard <unk> the account manager for the campaign says gap did n't intentionally choose black and white to <unk> its ads from the color spreads of competitors + we wanted to highlight the individual not the environment he says and black and white allows you to do that better than color + the campaign won a <unk> award as this year 's best ad by a specialty retailer + even food products and automobiles which have long depended on color are making the switch + companies feel black and white will convey a stronger statement says marc l. <unk> a chicago <unk> who is working on a black-and-white print ad for <unk> food corp. 's lean <unk> + other companies that are currently using <unk> ads include american express co. and <unk> america inc + portrait studios have also <unk> onto the trend + using black and white we can make <unk> look like stars says john <unk> + his <unk> photography studio in <unk> ore. doubled its business last year and he says is booked solid for the next five + one customer <unk> <unk> says she <unk> a color portrait for black and white because it 's more dramatic + i show it to my friends and they all say <unk> + it is n't ordinary like color + still most consumers are n't <unk> black-and-white film into their cameras to take family <unk> + one big obstacle is that few <unk> develop the film anymore + typically it must be <unk> to a handful of processors and may take a week or more to be processed and returned + black-and-white film costs consumers a little less than color film and processing costs the same + but for <unk> developing costs for black-and-white film are higher + some companies are starting to tackle that problem + <unk> for example recently introduced a black-and-white film that can be processed quickly by color labs + intent on wooing customers the company is also increasing its <unk> of black-and-white photography classes + similarly <unk> is <unk> scores of photography <unk> at high schools and colleges offering free black-and-white film and paper as prizes + and kodak is distributing an <unk> video to processors on how to develop its <unk> film more efficiently + other companies are introducing related products + charles <unk> co. a leading maker of photographic <unk> introduced last month a complete <unk> <unk> <unk> targeted at <unk> who want to process their own black-and-white photographs + the <unk> which has a suggested retail price of $ N and has already become a <unk> was introduced after retailers noticed numerous requests from parents for children 's photography equipment + it seems computers as <unk> have <unk> says ian <unk> <unk> 's chairman and chief executive officer + but some industry observers believe the <unk> of black and white is only a fad + they cite the emergence of still electronic photography more newspapers turning to color on their pages and <unk> improvements in the quality of color prints + black and white has n't made the same quantum <unk> in technological development as color says mr. butler of the rochester institute + the color print today is far superior to prints of N years ago + you ca n't say the same with black and white + but when popular photography a leading magazine for <unk> selected N of the greatest photos ever made for its latest issue celebrating photography 's <unk> anniversary all were black and white + it 's got a classic spirit and carries over <unk> says alfred <unk> of professional <unk> of america + that 's the appeal + <unk> newspapers inc. said improvements in advertising and subscription revenue led to a N N gain in third-quarter profit to $ N million or N cents a share from $ N million or N cents a share + sales rose more than N N to $ N million from $ N million + the sacramento calif. company also attributed improved performance to a lower effective tax rate and higher interest income + for the nine months the newspaper chain had almost a N N increase in profit to $ N million or N cents a share from $ N million or N cents a share + sales grew almost N N to $ N million from $ N million + <unk> publishes the sacramento calif <unk> and <unk> wash news tribune and other papers in western states + in composite trading on the new york stock exchange the company closed at $ N a share down N cents + agip s.p a. and societe national <unk> <unk> the state oil companies of italy and france respectively submitted an offer to buy <unk> suisse s.a + the price was n't disclosed + a spokesman for <unk> said that the swiss oil concern was <unk> the offer submitted last friday along with two other offers also submitted last week + those two offers were private and the spokesman refused to identify the bidding companies + the spokesman further said that at least two more offers are expected from other companies within two weeks + <unk> suisse owns an oil refinery in switzerland with a capacity of N barrels a day along with a network of gasoline retailing outlets + while friday 's plunging stock market prompted new fears about the economy 's prospects a <unk> indicator that has <unk> <unk> the economy 's ups and <unk> by exceptionally long lead times points to a sustained rise in overall business activity + the barometer developed by analysts at columbia university 's center for international business cycle research here reached a record high of N in august the latest month available and the columbia researchers estimate that it has moved even higher since then + the latest reading of N was up from N in july and N as recently as march + the august rise marked the fifth straight monthly gain for the indicator which uses the N average as a base of N + in contrast the commerce department 's widely followed index of leading indicators while up in august has fallen repeatedly since reaching a high early this year + its <unk> behavior through much of N has prompted some <unk> to anticipate the start of a new recession perhaps before year 's end + but the far stronger showing of the columbia index makes a recession any time soon highly unlikely says <unk> h. moore the director of the columbia facility + a leading authority on the business cycle mr. moore also is a member of the business cycle dating group the panel of private economists that decides for the government when <unk> and recessions begin and end + the group normally <unk> only when a change in the economy 's general course seems likely + no meeting is scheduled because the expansion shows no sign of going off the tracks mr. moore reports + based largely on the recent strength in their index called the long leading indicator the columbia analysts <unk> <unk> economic growth through the rest of this year and next year as well + they expect a N N rise in N in the gross national product after adjustment for inflation + underlying this optimism is the index 's longstanding ability to signal recessions or <unk> as the case may be by substantially greater periods than the commerce department 's index of leading indicators + over the full <unk> war ii era the columbia index on the average has entered sustained declines N months before the <unk> of recessions and turned up eight months before <unk> + the comparable lead times for the commerce index whose components include the stock market are far shorter N months before recessions and only three months before <unk> + the columbia economists also have <unk> how the long leading index would have behaved had it existed in N before the stock market crash in october that <unk> in the great depression + the indicator reached a peak in january N and then fell steadily up to and through the crash + it was an entirely different pattern from what we 're seeing now mr. moore says + a major source of the recent strength in the long leading indicator has been the performance of the dow jones corporate <unk> index which is not a part of the commerce index + in august the bond measure was at its highest monthly average since early N + it also rose last friday while the stock market sagged + other components of the long leading indicator include a ratio of prices to unit labor costs in manufacturing industries the <unk> version of the money supply adjusted for inflation and the volume of new <unk> permits + notably <unk> from the columbia index is the stock market which mr. moore says is simply no longer such a good indicator of the economy 's <unk> prospects though it still is useful for anticipating some <unk> <unk> and turns + as recently as N the stock market as reflected in the standard & poor 's index of N common stocks was rated by the national bureau of economic research as the best of the N leading indicators that then made up the commerce index + it was assigned a mark of N out of a possible N compared with scores ranging as low as N for the other components + the stock market has lost some <unk> power analysts at the columbia center claim because of the growing impact of international developments + stocks have become more sensitive to factors not directly tied to the domestic economy mr. moore says citing the exchange rate for the dollar on currency markets the <unk> balance and inflows of foreign capital + he also feels that the rise of such <unk> practices as program trading has diminished the stock market 's <unk> to the economic outlook + bsn s.a. a leading french food group said it agreed to acquire <unk> g.m.b h. a west german pasta maker + the value of the acquisition was n't disclosed + the move is in line with bsn 's strategy of gradually building its share of the european pasta market through external growth + bsn will initially acquire a N N interest in <unk> a closely held concern + the french group has an agreement giving it the right to buy all the shares outstanding and this could be completed within a few months a bsn spokeswoman said + the takeover was submitted for approval by the west german <unk> office bsn said + <unk> is west germany 's <unk> producer of pasta with sales of N million marks $ N million in N + it has N workers at three production units in southwest germany and is that nation 's leading producer of pasta <unk> + the acquisition <unk> bsn 's position in the european pasta market + the french group currently ranks second after <unk> group of italy whose sales are <unk> in the italian market + moody 's investors service inc. said it reduced its rating on $ N million of senior and subordinated debt of this thrift holding company to c from ca saying it believes bondholders will recover only negligible principal + the agency said it confirmed american continental 's preferred stock rating at c + american continental 's thrift unit los angeles-based lincoln savings & loan association is in <unk> and the parent company has filed for protection from creditor lawsuits under chapter N of the federal bankruptcy code + centrust savings bank miami + moody 's investors service inc. downgraded its ratings on the subordinated debt of centrust to <unk> from <unk> + the rating agency also reduced the ratings for long-term deposits to <unk> from <unk> and for preferred stock to ca from <unk> + the rating agency said about $ N million in securities was affected + the <unk> were prompted moody 's said by the continuing turmoil in the junk bond market and the suspension of dividends on centrust 's preferred stock + moody 's also said it believed the proposed sale of N centrust branches to great western bank could if completed endanger the thrift 's funding and market position + the stock market avoided a repeat of black monday as prices recovered from an early slide spurred by bargain-hunting institutions and program traders + the dow jones industrials closed up N points at N the <unk> gain ever after being down as much as N points in the morning + the rally erased about half of friday 's 190.58-point plunge but analysts are cautious about the market 's outlook + the dollar also rebounded while bond prices plummeted and treasury bill rates soared + junk bonds also recovered somewhat though trading remained stalled + gold also rose + tokyo stock prices bounced back in early trading tuesday following a N N plunge on monday + the dollar also moved higher in tokyo + donald trump withdrew his $ N billion offer for american air citing the recent change in market conditions + amr slid $ N to $ N + also a ual group tried to get financing for a lower bid possibly $ N a share + ual fell $ N to $ N + leveraged buy-outs of airlines would be subject to approval by the transportation secretary under a bill passed by a house subcommittee + ibm 's earnings tumbled N N in the third quarter slightly more than expected + the computer giant partly cited a stronger dollar and a delay in shipping a new high-end disk drive + analysts are <unk> about ibm 's outlook for the next few quarters + u.s. auto makers plan to decrease car production N N in the fourth quarter with virtually all the decline coming from the big three + output at <unk> and managed plants in the u.s. is due to rise N N + budget director darman said he wo n't give federal agencies much <unk> in coping with gramm-rudman spending cuts which took effect yesterday + darman hopes to <unk> congress to finish a deficit plan + the s&l bailout agency would be restricted by a new bill in how it raises capital + the ways and means plan would create another possible obstacle to selling sick thrifts + a natural gas rule was struck down by a federal appeals court + the regulation had prevented pipeline firms from passing part of $ N billion in costs along to customers + the supreme court agreed to decide whether a federal court may <unk> a merger that has won regulatory approval but been ruled <unk> in a private suit + merrill lynch 's profit slid N N in the third quarter + bear stearns posted a N N gain while painewebber had a decline due to a year-ago gain + blue arrow of britain plans to return to the name manpower and take a big write-off + the moves may help the firm <unk> its dominance of the u.s. <unk> market + j.p. morgan posted a $ N billion loss for the third quarter reflecting a big addition to loan-loss reserves + ncnb 's profit more than doubled + k mart agreed to acquire pace membership warehouse for $ N million expanding its presence in the growing <unk> business + markets + stocks volume N shares + dow jones industrials N up N transportation N off N utilities N up N + bonds shearson lehman hutton treasury index N off + commodities dow jones futures index N off N spot index N up N + dollar N yen off N N marks off N + monday october N N + the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions + prime rate N N N + the base rate on corporate loans at large u.s. money center commercial banks + federal funds N N N high N N N low N N N near closing bid N N N offered + reserves traded among commercial banks for overnight use in amounts of $ N million or more + source fulton prebon u.s.a inc + discount rate N N + the charge on loans to depository institutions by the new york federal reserve bank + call money N N N to N N + the charge on loans to brokers on stock exchange collateral + commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days + commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days + certificates of deposit N N one month N N two months N N three months N N six months N N one year + average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more + the minimum unit is $ N + typical rates in the secondary market N N one month N N three months N N six months + bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days + negotiable bank-backed business credit instruments typically financing an import order + london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months + london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year + the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks + foreign prime rates canada N N germany N N japan N N switzerland N N britain N N + these rate indications are n't directly comparable lending practices vary widely by location + treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks + federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N <unk> + N N standard conventional <unk> mortgages N N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed <unk> N N N rate capped one-year adjustable rate mortgages + source telerate systems inc + merrill lynch ready assets trust N N + annualized average rate of return after expenses for the past N days not a forecast of future returns + intel corp. said it reached an agreement with <unk> computer systems corp. to develop software standards for intel 's <unk> microprocessor + the <unk> introduced earlier this year is intel 's entry in the crowded market for reduced instruction set computing or risc computers + intel based in santa clara calif. is the market leader for traditional microprocessors with its N family that forms the heart of <unk> personal computers + under the agreement intel will invest $ N million to acquire a N N stake in <unk> a maker of <unk> for scientists and engineers + <unk> based in <unk> mass. will license its <unk> technologies to intel providing users a way to let many <unk> microprocessors in a single computer work on a problem simultaneously + <unk> said it plans to use the microprocessor in future products + it declined to discuss its plans for upgrading its current product line + <unk> inc. which intends to expand its position in the medical and <unk> markets said it acquired a cotton and <unk> products division from closely held <unk> products corp. for $ N million + <unk> said it expects the division to add substantial sales volume and to make a positive contribution to our earnings in N and beyond + in N the cincinnati company earned $ N million or N cents a share on revenue of $ N million + <unk> said the division operates under the trade name <unk> and supplies the medical and <unk> markets + the business based in st. louis had sales of more than $ N million in the fiscal year ended march N <unk> said + burmah oil plc a british independent oil and specialty chemicals marketing concern said shv holdings n.v. of the netherlands has built up a N N stake in the company + james alexander a burmah spokesman said shv had previously owned a little under N N of burmah for about two years + the dutch company had n't notified burmah of its reason for increasing the stake he said + shv which last year merged its north sea oil and gas operations with those of <unk> group plc has been pegged by speculators as a possible suitor for burmah oil in recent weeks + shv also owns N N of <unk> + burmah which owns the <unk> brand of <unk> oils reported a N N rise in net income to # N million $ N million in the first half + j.p. industries inc. said it signed a definitive agreement to sell its builders ' hardware group to closely held <unk> inc. of beverly hills calif + terms were n't disclosed but a j.p. industries spokesman said the amount j.p. industries will get for the group is a little better than expected by the marketplace and the marketplace had been expecting $ N million to $ N million + the group consists of <unk> corp. and <unk> modern inc + j.p. industries which is based in ann <unk> mich. said the sale <unk> a previously announced program to <unk> itself of its hardware and plumbing supplies operations + the company 's remaining business is the manufacture and sale of engine and <unk> products for industrial and transportation applications + citing a $ N million provision for doubtful accounts dallas-based national heritage inc. posted a loss for its fourth quarter ended june N + a unit of troubled southmark corp. the operator of nursing homes and retirement centers said it sustained a net loss of $ N million or nine cents a share compared with net income of $ N million or eight cents a share a year earlier + operating revenue rose N N to $ N million from $ N million in the year-earlier quarter + the company said the $ N million reserve was created to reflect doubt about the <unk> of receivables owed to national heritage by some of the real estate partnerships it manages + the company also said expenses incurred by the previous board and management in the recent contest for control were recognized primarily in the first quarter ended sept. N + national heritage stock fell N cents yesterday to close at $ N a share in new york stock exchange composite trading + united biscuits holdings plc a british food producer announced the creation of a european group to bring together its trading interests in the region + the new group will <unk> all of united <unk> 's manufacturing and marketing operations in the food sector apart from those based in the u.s. + united biscuits said the combined group which will include businesses such as <unk> biscuits and terry 's <unk> will have annual sales of more than # N billion $ N billion and trading profit of more than # N million $ N million + the new structure will enable united biscuits to focus clearly upon opportunities for planned growth during the 1990s said bob <unk> deputy chairman and group chief executive + last month united biscuits agreed to sell its entire restaurant operations to grand metropolitan plc for # N million + an american journalist now is standing trial in namibia + this is the place that world opinion has been celebrating over in the expectation that it 's going to hold an election + the most likely winner will be the <unk> swapo rebels + the u.s. journalist 's crime was writing that the head of the commission charged with overseeing the election 's fairness <unk> <unk> was openly sympathetic to swapo + shortly after that mr. <unk> had scott stanley arrested and his <unk> confiscated + mr. stanley is on trial over charges that he violated a <unk> issued by the south african administrator general earlier this year which made it a crime punishable by two years in prison for any person to <unk> <unk> or <unk> the election commission + the stanley affair does n't <unk> well for the future of democracy or freedom of anything in namibia when swapo starts running the government + to the extent mr. stanley has done anything wrong it may be that he is out of step with the consensus of world intellectuals that the <unk> guerrillas were above all else the victims of <unk> by neighboring south africa + swapo has enjoyed favorable western media treatment ever since the u.n. general assembly declared it the sole <unk> representative of namibia 's people in + last year the u.s. <unk> a peace settlement to remove cuba 's <unk> <unk> from <unk> and hold free and fair elections that would end south africa 's control of namibia + the elections are set for nov. N + in july mr. stanley editor of american press international a washington <unk> conservative wire service visited namibia to report on the <unk> election campaign + he interviewed mr. <unk> head of a commission charged with investigating electoral <unk> and reported that mr. <unk> was openly sympathetic to swapo and indeed had defended its leaders in court + after mr. stanley 's article was published in two <unk> newspapers mr. <unk> had criminal charges brought against their editors publisher and lawyer + mr. stanley was arrested and charged along with the others when he returned to namibia this month + both the state department and the lawyers committee for freedom of the press have <unk> mr. stanley 's <unk> + mr. stanley 's arrest is the latest in a series of incidents that threaten to <unk> namibia 's elections + both south african and swapo <unk> are <unk> voters + the u.s. is in the habit of arranging peace settlements and then <unk> its hands over the <unk> results + it now has the chance to <unk> that record in namibia + state and the human-rights community should insist that mr. stanley and his fellow defendants be released and that the united nation 's monitors make certain that mr. <unk> commission <unk> election complaints from all sides + commodity futures prices generally reflected the stability of the stock market following its plunge friday + yesterday the stock market 's influence at first created nervousness + later however it became more of an <unk> than a <unk> force as individual markets reacted more to their own factors + gold the traditional haven in times of financial crisis continued its <unk> <unk> with the dollar rising early in the day as the currency fell and then giving up some of its gains as the dollar recovered + copper and crude oil reacted sharply to the concern that a crash yesterday could have a potentially devastating effect on the economy + copper fell and showed little rebound through the day as one of the major supply problems that had been supporting prices appeared to be solved + crude oil declined early but as the stock market retained early gains it too became stronger ending with a small net loss + trading in cotton and sugar was nervous and showed small declines + in chicago grain and soybean prices rose slightly + livestock and meat prices however dropped on concern that a financial crisis would cut consumption of beef and pork + in commodity markets yesterday precious metals futures prices were moderately higher as gold gave up some of its early gains and platinum behaved <unk> first falling and then later rising + silver performed quietly + the spot october gold price rose $ N to $ N an ounce + the more active december delivery gold settled with a gain of $ N an ounce at $ N after trading as high as $ N + december silver was up N cents an ounce at $ N + platinum behaved more like an industrial metal easing early on concern over a possible weaker economy but recovering later as the stock market strengthened + gold was nowhere the spectacular performer it was two years ago on black monday + for one thing last friday precious metals markets closed before the stock market went into its <unk> nose dive so it could n't react to it + back on friday oct. N <unk> the stock market declined during the day and gold prices surged as the stock market fell + the october N contract that day rose as much as $ N to as high as $ N and the more deferred positions due to mature as late as march N rose as much as $ N + on black monday oct. N N the october contract tacked on further gains rising to as high as $ N for a gain of almost $ N on top of the friday advances before giving up almost $ N of that at the close + yesterday 's october gain of $ N was <unk> compared with that + one analyst peter <unk> of <unk> & co. new york said the gold market already had some good <unk> technical factors that would have caused prices to rise with or without the stock market + what the stock market did was cause the rise to take place earlier than it would have happened said mr. <unk> + there 's a good chance that gold will retain its gains and rise further he said + he expects a drop in interest rates which would help gold by keeping the dollar from rising + finally according to mr. <unk> the impact of the strong dollar should be reflected in reduced exports in the august merchandise trade deficit when the figures are released today + this would be damaging to the dollar and supportive for gold he said + energy + worried that friday 's 190-point stock market plunge might be a <unk> of things to come for the economy petroleum futures traders called a halt to the recent string of increases in crude oil futures prices + the u.s. benchmark crude west texas intermediate closed at $ N a barrel for november delivery down N cents + some analysts said crude was due for a correction <unk> following several days of significant gains + but most market observers agreed that friday 's stock market drop is what <unk> spirits in the petroleum pits yesterday + until yesterday futures prices had been headed up on expectations that world oil demand will continue to be strong + the organization of petroleum exporting countries increased its production ceiling for the fourth quarter based on projections of robust demand + so any bearish indicator such as friday 's <unk> drop in the stock market sends <unk> through the oil markets as well + indeed after reacting early in the trading day to friday 's plummet futures prices firmed up again as traders took note of the stock market 's partial recovery yesterday + copper + futures prices fell and showed little rebound as one major labor problem that had been <unk> prices appeared to be solved + the december contract declined N cents a pound to $ N + prices were down from the outset of trading on concern that a drop in the stock market might create a weakened economy and a <unk> reduction in copper use + but the recovery in the stock market provided little help for copper as word spread that a three-month strike at the highland valley mine in british columbia was about over according to an analyst + highland valley is a large canadian producer and principal supplier to japan which recently began seeking copper elsewhere as its inventories shrank + last week it was reported that company and union negotiations had overcome the major hurdle the contracting out of work by the company + now the analyst said only minor points remain to be <unk> up + for all <unk> and purposes an agreement appears to have been achieved he said + copper inventories in new york 's commodity exchange warehouses rose yesterday by N tons to N tons + london metal exchange copper inventories last week declined N tons to N tons + the <unk> stocks decline was about as expected but the comex gain was n't + however this was brushed aside by concern over the stock market the analyst said + at one point in futures trading as the stock market firmed the december contract rose to as high as $ N but it was n't able to sustain the gain + it was simply <unk> he said and selling by funds that are computer <unk> helped depress prices + cotton + futures prices eased more in reaction to hurricane jerry than to any influence of the stock market + the december contract ended with a loss of N cent a pound at N cents + technical considerations following the hurricane which was a factor in the market friday caused prices to decline yesterday said ernest simon cotton specialist for prudential-bache securities new york + prices rose sharply friday as the storm approached texas and louisiana which is part of the mississippi delta <unk> area + however after <unk> the potential effect of the hurricane prices began to slip late friday mr. simon said + that selling continued yesterday and kept prices under pressure he said + <unk> weather is being predicted for the high plains of texas and the northern states of the delta during the coming weekend mr. simon said + that has n't yet captured traders ' attention he added + sugar + futures prices declined + the march contract was off N cent a pound at N cents + at one point in early trading the march price rose to as high as N cents when the stock market recovered but the price then fell back + a <unk> factor one analyst said was that india which had been expected to buy around N tons of sugar in the world market did n't make any purchases + india recently bought N tons and was expected to buy more the analyst said + another analyst thought that india may have pulled back because of the concern over the stock market + india may have felt that if there was a severe drop in the stock market and it affected sugar it could buy at lower prices said <unk> <unk> analyst for shearson lehman hutton new york + at any rate she added india needs the sugar so it will be in sooner or later to buy it + farm products + the prices of cattle and <unk> futures contracts dropped sharply because traders speculated that the stock market plunge friday will <unk> in the minds of u.s. consumers long enough to prompt them to rein in their spending at the supermarket which would hurt demand for beef and pork + the price of the <unk> contract for october delivery dropped its maximum permissible daily limit of N cents a pound + the prices of most grain futures contracts rose slightly yesterday out of relief that the stock market was showing signs of recovering + earlier in the session the prices of several soybean contracts set new lows + a broad rally began when several major processors began buying futures contracts apparently to take advantage of the price dip + knight-ridder inc. said it would report increased earnings per share for the third quarter contrary to reported analysts ' comments that the publishing company 's earnings would be down + a company spokesman said he believed the confusion was caused when james <unk> knight-ridder 's chairman and chief executive told new york analysts two weeks ago that knight-ridder 's earnings per share for the first nine months of N would be behind a little bit from like period of + the knight-ridder spokesman said the third-quarter earnings that the company plans to report oct. N are expected to be up + the spokesman said he was comfortable with revised analysts ' projections that the company would report earnings of between N cents and N cents a share compared with the N cents a share it reported for the N third quarter + knight-ridder said it agreed with estimates that net income for all of N would be around $ N a share compared with $ N a share a year earlier + in new york stock exchange composite trading yesterday knight-ridder closed at $ N down N cents + dd acquisition corp. said it extended its $ <unk> offer for dunkin donuts inc. to nov. N from yesterday + the offer has an indicated value of $ N million + dd acquisition is a partnership of unicorp canada corp. 's <unk> capital group unit and cara operations ltd + as previously reported under the terms of a <unk> agreement with dunkin donuts the partners agreed to keep their offer open until nov. N and not to acquire any additional shares except through a tender offer <unk> on that date + dd acquisition said that it already owns N N of the common shares of the <unk> shop chain and that as of the close of business friday an additional N N had been tendered to its offer + dunkin donuts is based in <unk> mass + cara operations a food services concern and unicorp a holding company with interests in oil and natural gas and financial services are based in toronto + golden west financial corp. riding above the turbulence that has troubled most of the thrift industry posted a N N increase of third-quarter earnings to $ N <unk> or N cents a share + the company earned $ N million or N cents a share in the year-ago quarter + herbert m. <unk> chairman and chief executive officer of the oakland calif. savings-and-loan holding company credited the high number of loans added to the company 's portfolio over the last N months for <unk> its earning asset base and improving profit performance + however the executive noted that <unk> demand for new mortgages depressed new loan <unk> to $ N billion N N below the same period last year + in savings activity mr. <unk> said consumer deposits have enjoyed a steady increase throughout N and topped $ N billion at quarter 's end for the first time in the company 's history + deposit growth amounted to $ N million more than double the year-ago figure + <unk> corp. benton harbor mich. said it has developed a process to recover environmentally harmful chlorofluorocarbons or cfcs that previously entered the atmosphere during <unk> repair of refrigerators and <unk> + the maker of home appliances said the process which involves the use of a <unk> plastic bag during repairs to capture the <unk> substance and transport it to a recycling center is already in use at a number of its service centers and will be available to all authorized repair centers by spring + earlier repairs <unk> the cfcs out of the home through a <unk> directly into the atmosphere + cfcs are widely used as <unk> <unk> and fire <unk> + but their use has been linked to a potentially dangerous depletion of the earth 's ozone layer and a number of companies are seeking to curtail use or at least <unk> of the substance + <unk> said we see this process as a small but important step toward eventual elimination of <unk> use in <unk> manufacture + <unk> energy corp. dallas said it discovered a new oil field northeast of its previously discovered <unk> field in the southeast <unk> area of indonesia + <unk> said it did n't run a production test on the three discovery wells it <unk> in the field which is about N miles from the <unk> field because the wells are similar to others <unk> at its <unk> and <unk> fields + however <unk> said it believes the reserves in the field are about N million barrels of oil + the <unk> field has estimated reserves of N million barrels and the <unk> field has estimated reserves of N million barrels + <unk> an independent oil and gas concern is the operator and owns a N N interest in the new field called northeast <unk> + other interests are owned by <unk> petroleum development <unk> ltd. c. <unk> energy co. ltd. <unk> <unk> <unk> g.m.b h. <unk> <unk> production ltd. <unk> oil indonesia ltd. <unk> <unk> co. ltd. <unk> <unk> ltd. <unk> shell <unk> <unk> a.g. and <unk> oil co + the <unk> contract area is held with <unk> the <unk> state oil company + environmental systems co. said it is <unk> its results to reduce its reported net income for the first nine months of its fiscal year after <unk> it took tax credits that already had been taken last year + the little rock <unk> <unk> services company said the <unk> will reduce its net for the nine months ended july N to $ N million or N cents a share from $ N million or N cents a share + net for the third quarter restated is $ N million or N cents a share + the company previously reported net of $ N million or N cents a share + the company said that for financial reporting purposes last year it took tax credits that will be recognized for tax purposes this year + but because of confusion it took those credits again in reporting its results through the first nine months + jack w. <unk> environmental systems president and chief executive officer said the change increases the company 's effective tax rate to about N N from N N + memotec data inc. said it signed a definitive merger agreement with isi systems inc. under which memotec will acquire isi for $ N u.s. a share or about $ N million in cash and securities + in american stock exchange composite trading isi closed up $ N at $ N + in montreal exchange trading memotec closed unchanged at N canadian dollars us$ N + memotec said under the agreement isi a <unk> mass. provider of computer software and services to the insurance industry will merge with a u.s. unit of memotec created for that purpose + memotec is a <unk> maker of telecommunications products and provider of telecommunications and computer services + memotec said the agreement calls for it to make a $ <unk> cash tender offer for all shares outstanding of isi + but it said charles johnston isi chairman and president agreed to sell his N N stake in isi to memotec upon completion of the tender offer for a combination of cash memotec stock and debentures + memotec said the tender offer is <unk> on among other things holders <unk> at least N N of the shares outstanding other than the shares held by mr. johnston + isi said its board has instructed management to accept inquiries from any others interested in making a bid + isi said it can withdraw from the merger agreement with memotec if a better bid <unk> + cms energy corp. jackson mich. said it has resumed the purchase of its common stock under a program approved by its directors in N + at the time of the original announcement cms said its board authorized the purchase of as many as five million of its shares + a spokesman said N million shares have been purchased since then + the company said it will buy additional shares from time to time in the open market or in private transactions at prevailing market prices + in composite trading on the new york stock exchange cms energy closed at $ N a share down N cents from the closing price of $ N a share on thursday before friday 's plunge + the utility company currently has about N million shares outstanding + morgan stanley & co. will act as the exclusive broker for the repurchase + hughes aircraft co. a unit of general motors corp. said it agreed to purchase the <unk> technology division of <unk> corp + terms of the agreement were n't disclosed + but for the fiscal year ended july N N the most recent period for which results were broken out the <unk> unit accounted for more than half the $ N million in sales recorded by the company 's government systems sector + <unk> which is based in <unk> conn. said the sale of the <unk> conn. unit is consistent with its restructuring strategy announced in april + in addition to making <unk> systems the unit also makes laser warning <unk> + these are used aboard military <unk> to warn pilots that a laser weapon has been focused on them + hughes of los angeles said the <unk> unit 's work <unk> efforts by its <unk> and data systems group which makes <unk> <unk> military <unk> and night vision equipment + hughes said it expects the sale to close by year end + the communications workers of america ratified a new regional contract and all but one of the local agreements with bell atlantic corp + <unk> 's new jersey commercial local which represents about N service representatives and marketing employees rejected the tentative agreement + both the union and the regional telephone company said they were working together to resolve differences + the new three-year contracts which replace ones that expired aug. N cover N bell atlantic employees + the <unk> follows a <unk> strike against the <unk> company + meanwhile <unk> and international <unk> of electrical workers members remain on strike against nynex corp. the new york-based regional phone company + the unions and the company last week agreed to <unk> + the <unk> represents N nynex workers and the <unk> represents N workers + for the moment at least euphoria has replaced anxiety on wall street + the dow jones industrial average jumped sharply yesterday to close at N panic did n't sweep the world 's markets and investors large and small seemed to accept friday 's dizzying 190-point plunge as a sharp correction not a <unk> + many went bargain-hunting + among those <unk> with relief was john h. gutfreund chairman of salomon brothers who took to the firm 's trading floor to monitor yesterday 's events + as the rally gained strength at N p.m. he <unk> broadly <unk> his <unk> <unk> and <unk> stanley <unk> his top stock trader on the back + at first it seemed as if history might repeat itself + as trading opened yesterday morning on the big board stocks of many of the nation 's biggest companies could n't open for trading because a wave of sell orders was overwhelming buyers + by N the dow industrials were off N points and the stock of ual corp. whose troubles had kicked off friday 's plunge still had n't opened + but then as quickly as the dow had fallen it began to turn around + it ended with a gain of N points + by the market 's close volume on the new york exchange totaled more than N million the fourth highest on record + the big board handled the huge volume without any obvious strain in sharp contrast to black monday of N + but the rally was largely confined to the blue-chip stocks which had been hard hit during friday 's selling frenzy + overall more big board stocks lost money than gained + and many arbitragers already reeling from friday 's collapse of the ual deal were further hurt yesterday when a proposed takeover of amr corp. the parent of american airlines collapsed + indeed the dow jones transportation average plunged N points its <unk> drop in history + world-wide trading was generally <unk> + the frankfurt stock exchange was hardest hit of the major markets with blue chips there falling N N + in london a midday rally left the market 's major index off N N and tokyo 's leading stock index fell only N N in surprisingly lackluster trading + other more <unk> traded asian markets were hit harder than tokyo 's but there were no <unk> declines + investors big and small say they learned valuable <unk> since the N crash in this age of computerized trading huge <unk> or <unk> in a few hours ' time must be expected + what 's more such short-term <unk> are <unk> and are no cause for panic selling + stephen boesel a major money manager for t. rowe price in baltimore says there was less panic than in N we had been through it once + in <unk> wis. <unk> <unk> who owns a supplier of <unk> equipment and is n't active in the stock market agrees + i look at it as a <unk> matter he says + many other factors played a part in yesterday 's comeback + the federal reserve signaled its willingness to provide liquidity the interest rate on its loans to major banks inched downward early in the day + foreign stock markets which kicked off black monday with a huge selling spree began the day off by relatively modest amounts + the dollar after falling sharply in overnight trading to N yen bounced back strongly to N thus easing fears that foreigners would unload u.s. stocks + and the widely <unk> opinion among most market experts that a crash was n't in store also helped calm investors + many major institutions for example came into work yesterday ready to buy some of the blue chips they felt had been sharply undervalued on friday + still amid all the <unk> and signs of relief over yesterday 's events some market professionals cautioned that there is nothing present in the current market system to prevent another dizzying drop such as friday 's + there is too much <unk> says money manager barry <unk> + computers have increasingly connected securities markets world-wide so that a buying or selling wave in one market is often passed around the globe + so investors everywhere nervously <unk> yesterday 's opening in tokyo where the nikkei average of N blue-chip stocks got off to a rocky start + the average plunged some N points or N N in the first N minutes of trading + but the selling wave had no conviction and the market first surged upward by N points then drifted lower closing down N + unlike two years ago most of japan 's major investors chose to sit this <unk> out + in merrill lynch & co. 's tokyo trading room some N traders and <unk> sat quietly with few orders to process + clients are all staying out of the market one merrill trader says + the relative calm in tokyo proved little comfort to markets opening up in europe + frankfurt 's opening was delayed a half hour because of a crush of sell orders + the beginning was chaotic says nigel <unk> a broker for commerzbank + in london the view from the trading floor of an american securities firm jefferies & co. also was troubling + a computer screen <unk> N blue-chip stocks colors each one red when its price is falling + the screen was a sea of red + i see concern but i do n't see panic says j. francis <unk> a new yorker who runs the <unk> office + london 's blue-chip stock index turned up just before N a.m new york time sending an encouraging message to wall street + when trading opened in new york at N a.m. edt stocks fell sharply as expected + futures markets in chicago had opened at a level suggesting the dow would fall by about N points + with sell orders <unk> up from friday about half the stocks in the dow could n't open on time + by N the industrial average had dropped N points + by N a.m. it was down N + ten minutes later the dow hit bottom down N points another N N + but shortly before then some of wall street 's sharpest traders say they <unk> a turn + the first thing that caught my eye that was encouraging was treasury bonds were off says austin george head of stock trading at t. rowe price + it meant that people were n't running <unk> to the safety of bonds + shortly after N a.m. the major market index a chicago board of trade futures contract of N stocks designed to mimic the <unk> exploded upward + stock traders were buoyed because an <unk> in the mmi had also started the recovery in stocks on the tuesday following black monday + the mmi has gone better shouted a trader in the london office of shearson lehman hutton + shearson 's london trading room went wild + traders shouted out as their reuters quotron and telerate screens posted an <unk> loss on wall street + then nine minutes later wall street suddenly rebounded to a gain on the day + rally rally rally shouted shearson 's andy rosen + this is panic buying + major blue-chip stocks like philip morris general motors and <unk> & gamble led the rally + japanese were said to be heavy buyers + german and dutch investors reportedly loaded up on kellogg co + then traders say corporations with share buy-back programs kicked into high gear triggering gains in among other issues <unk> <unk> and mcdonald 's + walt disney co. which had one of the biggest <unk> imbalances on friday and was one of seven stocks that halted trading and never reopened that day opened yesterday late at N down N + but then it suddenly burst upward N as goldman sachs & co. stepped in and bought almost every share offer traders said + by N the dow had turned up for the day prompting <unk> on trading desks and exchange floors + among big board specialists the cry was pull your offers meaning that specialists soon expected to get higher prices for their shares + it was <unk> on the upside said one big board specialist + what we had was a real old-fashioned rally + this technical strength spurred buying from wall street 's black boxes computer programs designed to trigger large stock purchases during bullish periods + typical perhaps was <unk> 's dean <unk> + mr. <unk> who manages $ N billion says we turned the trading system on and it did whatever it was <unk> to do + asked what stocks the computer bought the money manager says i do n't know + not everybody was making money + the <unk> on the chicago board options exchange the nation 's major options market was heavy after the trading in s&p N stock-index options was halted friday + many market makers in the s&p N index options contract had bullish positions friday and when the shutdown came they were frozen with huge losses + over the weekend clearing firms told the chicago market makers to get out of their positions at any cost monday morning + they were absolutely killed <unk> said one chicago-based options trader + meanwhile a test of the stock market 's rally came at about N p.m. with the dow at N up N points on the day + charles <unk> a strategist at merrill lynch says bargain hunting had explained the dow 's strength up to that point and that many market professionals were anticipating a drop in the dow + moreover the announcement that real estate <unk> and sometime raider donald trump was <unk> his offer for amr corp. might have been expected to <unk> traders + instead the rally only <unk> for about N minutes and then <unk> forward as institutions resumed buying + the market closed minutes after reaching its high for the day of + across the country many people took yesterday 's events in <unk> while remaining generally uneasy about the stock market in general + says james norman the mayor of <unk> mo. i do n't invest in stocks + i much prefer money i can put my hands on + while mayor norman found the market 's performance monday reassuring he says he remains uneasy + we have half the experts saying one thing and half the other about the course of the economy + ralph <unk> a farmer and <unk> store operator in <unk> neb. says of the last few days events if anything good comes out of this it might be that it puts some of these lbos on the <unk> + says gordon fines a money manager at <unk> financial services in minneapolis you 're on a roller <unk> and that may last + the public is still cautious + skipper 's inc. <unk> wash. said it signed a definitive merger agreement for a national pizza corp. unit to acquire the N N of skipper 's inc. it does n't own for $ N a share or about $ N million + <unk> acquisition co. a national pizza unit plans to begin a tender offer for skipper 's on friday <unk> on at least two-thirds of skipper 's shares being tendered + <unk> <unk> national pizza said the transaction will be financed under its revolving credit agreement + in national over-the-counter trading skipper 's shares rose N cents to $ N + skipper 's said the merger will help finance remodeling and future growth + skipper 's previously turned down a $ <unk> proposal from national pizza and pizza hut inc. questioned whether the purchase would violate national pizza 's franchise agreements + national pizza said it settled its dispute with pizza hut allowing it to make the purchase + also skipper 's results began to turn around permitting a higher offer national pizza said + for the N weeks ended sept. N skipper 's had net income of $ N or N cents a share compared with a net loss a year earlier + revenue was $ N million + east germans rallied as officials reportedly sought honecker 's <unk> + in what was considered the largest protest in the communist state 's <unk> history at least N demonstrators marched through the southern city of leipzig to press demands for democratic freedoms opposition activists said + police did n't intervene + meanwhile as the first of more than N east germans trying to <unk> to the west through poland <unk> their <unk> a west german newspaper reported that regional communist officials demanded the dismissal of hard-line leader honecker + secretary of state baker in a foreign policy speech called for the reunification of germany saying it was the legitimate right of the german people + gorbachev blamed the soviet union 's press for contributing to the nation 's mounting problems + at a meeting friday the kremlin leader complained about recent articles that raised the <unk> of civil unrest and accused the media of fueling panic buying of goods by publishing stories about impending shortages + house-senate conferees approved a permanent smoking ban on domestic airline routes within the continental u.s. and on flights of less than six hours to alaska and hawaii + the curbs would cover all but a small percentage of flights and represent an expansion of the current ban on flights of less than two hours + e. robert <unk> was sentenced by a u.s. judge in new york to six years in prison and fined $ N for his racketeering conviction in the wedtech scandal + <unk> an associate of <unk> general <unk> was found guilty in august of taking $ N in illegal <unk> from the <unk> defense contractor + nasa resumed the <unk> for today 's launch of the space shuttle atlantis and a federal appeals court in washington dismissed a lawsuit by anti-nuclear groups to delay the flight because the <unk> galileo space probe was aboard + the space agency said it did n't expect weather or protesters to block the <unk> + the bush administration is preparing to extend a ban on federal financing of research using <unk> tissue government sources said + a temporary prohibition was imposed in march N + while anti-abortion groups are opposed to such research scientists have said <unk> such tissue could be effective in treating <unk> + delegates from N nations endorsed a ban on world ivory trade in an attempt to rescue the endangered elephant from <unk> + five african nations however said they would continue selling the valuable <unk> + <unk> held reconciliation talks with <unk> at the egyptian resort of <unk> <unk> + it was the <unk> leader 's first trip to egypt in N years + they announced a reduction in <unk> for travel but did n't show any real signs of <unk> full diplomatic ties + the egyptian president said he would visit libya today to resume the talks + seoul and <unk> reached a tentative agreement to allow visits between families on the divided korean peninsula + such family <unk> would be the second since N + differences remained between the north and south korean governments however over conditions for the exchanges + freed black <unk> resumed political activity in south africa and vowed to fight against apartheid raising fears of a possible white backlash + the nation 's main white opposition party warned that the government 's release sunday of eight black political <unk> <unk> bringing chaos and eventual black marxist rule to the nation + the white house said bush is fully satisfied with cia director webster and the intelligence agency 's performance during the oct. N failed coup in panama + the washington post reported that unidentified senior administration officials were frustrated with webster 's <unk> activities during the <unk> and wanted him replaced + poland 's legislature approved limits on automatic wage increases without special provisions for food price rises + the vote was considered a test of the <unk> government 's resolve to proceed with a harsh <unk> program + norway 's king <unk> <unk> installed a <unk> <unk> government as <unk> <unk> <unk> 's <unk> labor regime <unk> power + the <unk> cabinet is led by prime minister jan <unk> who acknowledged a difficult situation since the coalition controls only N seats in <unk> 's <unk> legislature + el salvador 's government opened a new round of talks with the country 's leftist rebels in an effort to end a <unk> civil war + a spokesman said the guerrillas would present a cease-fire proposal during the negotiations in costa rica that includes constitutional and economic changes + the state department said there was a possibility that some nicaraguan rebels were selling their <unk> arms to <unk> guerrillas but insisted it was n't an organized effort + separately secretary of state baker complained about a u.n. aide who last week told the contras to <unk> as part of a regional peace accord + died <unk> <unk> N actor and director in los angeles of <unk> + <unk> <unk> N <unk> novelist and <unk> sunday in paris of cancer + british retail sales volume rose a provisional N N in september from august and was up N N from september N the department of trade and industry said + for the three months ended in september retail sales volume was down N N from the previous three months and up N N from a year earlier + chicago investor william <unk> agreed to sell three divisions of cluett peabody & co. for about $ N million to <unk> s.a. a closely held clothing maker based in paris + shortly after completing the $ N billion acquisition of west <unk> inc. in april mr. <unk> 's holding company <unk> inc. said it was considering the sale of cluett a leading <unk> maker and one of west <unk> 's biggest units + included in the sale are cluett units that make men 's shirts under the arrow name <unk> under the gold <unk> name and <unk> through the <unk> division + the companies said the agreement is subject to <unk> 's <unk> of financing and to regulatory and other approvals + they said the sale is expected to be concluded by the end of november + mr. <unk> said the sale of three of cluett 's four main divisions plus other anticipated west <unk> asset sales by december should bring in a total of about $ N million + he did n't elaborate on other asset sales being considered + mr. <unk> followed a similar pattern when he acquired northwest industries inc. and then sold much of its assets + but he kept fruit of the <unk> inc. the underwear maker that he still controls and serves as chairman and chief executive + cluett was an independent company until west <unk> acquired it for $ N million in cash and stock in N + in the fiscal year ended sept. N N cluett had operating profit of $ N million on sales of $ N million + <unk> sells clothes under various labels including <unk> <unk> <unk> and bill robinson for men and ralph <unk> for women + a spokesman said the company had sales of $ N million in N + in new york stock exchange composite trading west <unk> fell N cents to $ N + britain 's blue arrow plc intends to change its name to manpower plc and write off a chunk of the nearly $ N billion in good will realized in the takeover of <unk> manpower inc + blue arrow chairman mitchell fromstein said in an interview that the two steps may be a prelude to <unk> the world 's biggest <unk> group in the u.s. + mr. fromstein disclosed the planned steps expected within a few months as blue arrow posted a N N drop in its third-quarter pretax earnings + the name change and good will write-off could help <unk> blue arrow 's dominance of the u.s. <unk> market and give it a more american image as u.s. investors turn jittery about foreign stocks after friday 's market plunge + u.s. holders now own more than N N of blue arrow compared with N N last january + in the u.s. market the recognition of the manpower name is <unk> stronger than blue arrow mr. fromstein said + the moves also could <unk> shareholders ' perception of blue arrow as a company in turmoil + it further <unk> the concept that blue arrow is a thing of the past said doug arthur an analyst at kidder peabody & co. in new york + the proposed changes all make a lot of sense to me he added + in a widely publicized <unk> coup mr. fromstein ousted <unk> berry as blue arrow chief executive in january a month after mr. berry had forced mr. fromstein out as the $ N <unk> chief of <unk> manpower + mr. fromstein <unk> his control in april by taking over from mr. berry as chairman + but the blue arrow <unk> is n't over yet as the british government is investigating a disputed # N million $ N million loan which mr. fromstein has said was made under mr. berry 's direction + blue arrow was able to pull off the $ N billion takeover of manpower in N largely because different british and american accounting standards produce higher reported earnings for british companies + under british rules blue arrow was able to write off at once the $ N billion in good will arising from the purchase + as a <unk> company blue arrow would have to <unk> the good will over as many as N years creating a continuing drag on reported earnings + good will is the excess of cost of an acquired firm operating unit or assets over the current or fair market value of those assets + but with so many shares now held in the u.s. blue arrow reports its earnings two ways based on both u.k. and u.s. accounting standards + our balance sheets look like they came from alice 's <unk> mr. fromstein said + the british version shows a handful of pounds of net worth following the N write-off of good will while the american version reflects $ N billion of net worth because almost none of the good will has been written off + mr. fromstein said he hopes to <unk> some of the good will left on blue arrow 's u.s. books in one fell <unk> but would n't specify how much + people close to blue arrow suggested the write-down would represent a sizable chunk with executives claiming prior management <unk> the extent of manpower 's good will + that move along with the return to the manpower name could bolster the company 's prospects during possibly difficult times for temporary help + the number of u.s. temporary workers fell about N N in the N months ending aug. N after sliding nearly N N in july said kidder peabody 's mr. arthur + blue arrow blamed the pretax profit drop in the quarter ended july N partly on slower earnings growth of <unk> units in britain + overall pretax profit slid to # N million in the quarter from # N million a year earlier + richard g. sim the man credited with <unk> applied power inc. from an <unk> into a <unk> player in the global market for <unk> tools hopes to guide a similar turnaround at the company 's latest acquisition barry wright corp + the 45-year-old former general electric co. executive figures it will be easier this time + but analysts while <unk> the acquisition say applied 's chief executive faces a tough challenge in <unk> the two companies + barry wright acquired by applied for $ N million makes <unk> equipment and <unk> systems + the <unk> mass. company 's sales have been <unk> and its profits have dropped + last year 's earnings of $ N million including $ N from a restructuring gain were far below the year-earlier $ N million + besides spurring barry wright 's sales which were $ N million in N mr. sim must <unk> its costs and product line + the question is how long it 's going to take barry wright to make a contribution says f. john <unk> an analyst at blunt ellis <unk> in milwaukee + the answer will help determine whether applied continues to reach the ambitious goals set by mr. sim + the butler wis. manufacturer went public at $ N a share in august N and mr. sim 's goal then was a $ N per-share price by N + strong earnings growth helped achieve that price far ahead of schedule in august N + the stock has since <unk> trading around $ N a share last week and closing yesterday at $ N in national over-the-counter trading + but mr. sim has set a fresh target of $ N a share by the end of + reaching that goal says robert t. <unk> applied 's chief financial officer will require efficient reinvestment of cash by applied and <unk> of its healthy N N rate of return on operating capital + in barry wright mr. sim sees a situation very similar to the one he faced when he joined applied as president and chief operating officer in N + applied then a closely held company was <unk> under the management of its controlling family + while profitable it was n't growing and was n't providing a satisfactory return on invested capital he says + mr. sim is confident that the drive to dominate certain niche markets will work at barry wright as it has at applied + he also <unk> an <unk> <unk> to develop a corporate culture that rewards managers who produce and where <unk> is shared + mr. sim considers the new unit 's operations fundamentally sound and adds that barry wright has been fairly successful in moving into markets that have n't interested larger competitors + with a little patience these businesses will perform very <unk> mr. sim says + within about six months things will be moving in the right direction he predicts + mr. sim figures it will be easier to turn barry wright around since he 's now in the driver 's seat + when he came to applied i did n't have the power to execute as i do today he says + he was named chief executive officer of applied in N and became chairman last november + at applied mr. sim set growth as his first objective + he took the company public in an offering that <unk> applied about $ N million which helped launch the company 's acquisition program + sales climbed to an estimated $ N million in fiscal N ended aug. N from $ N million in fiscal N + the company expects that earnings which have marched steadily upward in recent years reached about $ N million or $ N a share in the fiscal year just ended up from $ N million in fiscal N and $ N million in N diff --git a/nerv/examples/lmptb/lmptb/layer/affine_recurrent.lua b/nerv/examples/lmptb/lmptb/layer/affine_recurrent.lua new file mode 100644 index 0000000..0a762f0 --- /dev/null +++ b/nerv/examples/lmptb/lmptb/layer/affine_recurrent.lua @@ -0,0 +1,93 @@ +local Recurrent = nerv.class('nerv.AffineRecurrentLayer', 'nerv.Layer') + +--id: string +--global_conf: table +--layer_conf: table +--Get Parameters +function Recurrent:__init(id, global_conf, layer_conf) + self.id = id + self.dim_in = layer_conf.dim_in + self.dim_out = layer_conf.dim_out + self.gconf = global_conf + + self.bp = layer_conf.bp + self.ltp_ih = layer_conf.ltp_ih --from input to hidden + self.ltp_hh = layer_conf.ltp_hh --from hidden to hidden + + self:check_dim_len(2, 1) + self.direct_update = layer_conf.direct_update +end + +--Check parameter +function Recurrent:init(batch_size) + if (self.ltp_ih.trans:ncol() ~= self.bp.trans:ncol() or + self.ltp_hh.trans:ncol() ~= self.bp.trans:ncol()) then + nerv.error("mismatching dimensions of ltp and bp") + end + if (self.dim_in[1] ~= self.ltp_ih.trans:nrow() or + self.dim_in[2] ~= self.ltp_hh.trans:nrow()) then + nerv.error("mismatching dimensions of ltp and input") + end + if (self.dim_out[1] ~= self.bp.trans:ncol()) then + nerv.error("mismatching dimensions of bp and output") + end + + self.ltp_ih_grad = self.ltp_ih.trans:create() + self.ltp_hh_grad = self.ltp_hh.trans:create() + self.ltp_ih:train_init() + self.ltp_hh:train_init() + self.bp:train_init() +end + +function Recurrent:update(bp_err, input, output) + if (self.direct_update == true) then + local ltp_ih = self.ltp_ih.trans + local ltp_hh = self.ltp_hh.trans + local bp = self.bp.trans + local ltc_ih = self.ltc_ih + local ltc_hh = self.ltc_hh + local bc = self.bc + local gconf = self.gconf + -- momentum gain + local mmt_gain = 1.0 / (1.0 - gconf.momentum); + local n = input[1]:nrow() * mmt_gain + -- update corrections (accumulated errors) + self.ltp_ih.correction:mul(input[1], bp_err[1], 1.0, gconf.momentum, 'T', 'N') + self.ltc_hh.correction:mul(input[2], bp_err[1], 1.0, gconf.momentum, 'T', 'N') + self.bp.correction:add(bc, bp_err[1]:colsum(), gconf.momentum, 1.0) + -- perform update + ltp_ih:add(ltp_ih, self.ltp_ih.correction, 1.0, -gconf.lrate / n) + ltp_hh:add(ltp_hh, self.ltp_hh.correction, 1.0, -gconf.lrate / n) + bp:add(bp, self.bp.correction, 1.0, -gconf.lrate / n) + -- weight decay + ltp_ih:add(ltp_ih, ltp_ih, 1.0, -gconf.lrate * gconf.wcost) + ltp_hh:add(ltp_hh, ltp_hh, 1.0, -gconf.lrate * gconf.wcost) + else + self.ltp_ih_grad:mul(input[1], bp_err[1], 1.0, 0.0, 'T', 'N') + self.ltp_ih:update(self.ltp_ih_grad) + self.ltp_hh_grad:mul(input[2], bp_err[1], 1.0, 0.0, 'T', 'N') + self.ltp_hh:update(self.ltp_hh_grad) + self.bp:update(bp_err[1]:colsum()) + end +end + +function Recurrent:propagate(input, output) + output[1]:mul(input[1], self.ltp_ih.trans, 1.0, 0.0, 'N', 'N') + output[1]:mul(input[2], self.ltp_hh.trans, 1.0, 1.0, 'N', 'N') + output[1]:add_row(self.bp.trans, 1.0) +end + +function Recurrent:back_propagate(bp_err, next_bp_err, input, output) + next_bp_err[1]:mul(bp_err[1], self.ltp_ih.trans, 1.0, 0.0, 'N', 'T') + next_bp_err[2]:mul(bp_err[1], self.ltp_hh.trans, 1.0, 0.0, 'N', 'T') + for i = 0, next_bp_err[2]:nrow() - 1 do + for j = 0, next_bp_err[2]:ncol() - 1 do + if (next_bp_err[2][i][j] > 10) then next_bp_err[2][i][j] = 10 end + if (next_bp_err[2][i][j] < -10) then next_bp_err[2][i][j] = -10 end + end + end +end + +function Recurrent:get_params() + return {self.ltp_ih, self.ltp_hh, self.bp} +end diff --git a/nerv/examples/lmptb/lmptb/layer/init.lua b/nerv/examples/lmptb/lmptb/layer/init.lua new file mode 100644 index 0000000..b3b00f6 --- /dev/null +++ b/nerv/examples/lmptb/lmptb/layer/init.lua @@ -0,0 +1,5 @@ +require 'lmptb.layer.affine_recurrent' +require 'lmptb.layer.lm_affine_recurrent' + + + diff --git a/nerv/examples/lmptb/lmptb/layer/lm_affine_recurrent.lua b/nerv/examples/lmptb/lmptb/layer/lm_affine_recurrent.lua new file mode 100644 index 0000000..f1eb4a1 --- /dev/null +++ b/nerv/examples/lmptb/lmptb/layer/lm_affine_recurrent.lua @@ -0,0 +1,25 @@ +local LMRecurrent = nerv.class('nerv.LMAffineRecurrentLayer', 'nerv.AffineRecurrentLayer') --breaks at sentence end, when </s> is met, input will be set to zero + +--id: string +--global_conf: table +--layer_conf: table +--Get Parameters +function LMRecurrent:__init(id, global_conf, layer_conf) + nerv.AffineRecurrentLayer.__init(self, id, global_conf, layer_conf) + self.break_id = layer_conf.break_id --int, breaks recurrent input when the input (word) is break_id + self.independent = layer_conf.independent --bool, whether break +end + +function LMRecurrent:propagate(input, output) + output[1]:mul(input[1], self.ltp_ih.trans, 1.0, 0.0, 'N', 'N') + if (self.independent == true) then + for i = 1, input[1]:nrow() do + if (input[1][i - 1][self.break_id - 1] > 0.1) then --here is sentence break + input[2][i - 1]:fill(0) + end + end + end + output[1]:mul(input[2], self.ltp_hh.trans, 1.0, 1.0, 'N', 'N') + output[1]:add_row(self.bp.trans, 1.0) +end + diff --git a/nerv/examples/lmptb/lmptb/lmfeeder.lua b/nerv/examples/lmptb/lmptb/lmfeeder.lua new file mode 100644 index 0000000..34631bf --- /dev/null +++ b/nerv/examples/lmptb/lmptb/lmfeeder.lua @@ -0,0 +1,96 @@ +require 'lmptb.lmvocab' + +local Feeder = nerv.class("nerv.LMFeeder") + +local printf = nerv.printf + +--global_conf: table +--batch_size: int +--vocab: nerv.LMVocab +function Feeder:__init(global_conf, batch_size, vocab) + self.gconf = global_conf + self.fh = nil --file handle to read, nil means currently no file + self.batch_size = batch_size + self.log_pre = "[LOG]LMFeeder:" + self.vocab = vocab + self.streams = nil +end + +--fn: string +--Initialize all streams +function Feeder:open_file(fn) + if (self.fh ~= nil) then + nerv.error("%s error: in open_file, file handle not nil.") + end + printf("%s opening file %s...\n", self.log_pre, fn) + self.fh = io.open(fn, "r") + self.streams = {} + for i = 1, self.batch_size, 1 do + self.streams[i] = {["store"] = {self.vocab.sen_end_token}, ["head"] = 1, ["tail"] = 1} + end +end + +--id: int +--Refresh stream id, read a line from file +function Feeder:refresh_stream(id) + if (self.streams[id] == nil) then + nerv.error("stream %d does not exit.", id) + end + local st = self.streams[id] + if (st.store[st.head] ~= nil) then return end + if (self.fh == nil) then return end + local list = self.vocab:read_line(self.fh) + if (list == nil) then --file has end + printf("%s file expires, closing.\n", self.log_pre) + self.fh:close() + self.fh = nil + return + end + for i = 1, #list, 1 do + st.tail = st.tail + 1 + st.store[st.tail] = list[i] + end +end + +--Returns: nil/table +--If gets something, return a list of string, vocab.null_token indicates end of string +function Feeder:get_batch() + local got_new = false + local list = {} + for i = 1, self.batch_size, 1 do + self:refresh_stream(i) + local st = self.streams[i] + list[i] = st.store[st.head] + if (list[i] == nil) then list[i] = self.vocab.null_token end + if (list[i] ~= nil and list[i] ~= self.vocab.null_token)then + got_new = true + st.store[st.head] = nil + st.head = st.head + 1 + end + end + if (got_new == false) then + return nil + else + return list + end +end + +--[[ +do + local test_fn = "/home/slhome/txh18/workspace/nerv-project/some-text" + --local test_fn = "/home/slhome/txh18/workspace/nerv-project/nerv/examples/lmptb/PTBdata/ptb.train.txt" + local vocab = nerv.LMVocab() + vocab:build_file(test_fn) + local batch_size = 3 + local feeder = nerv.LMFeeder({}, batch_size, vocab) + feeder:open_file(test_fn) + while (1) do + local list = feeder:get_batch() + if (list == nil) then break end + for i = 1, batch_size, 1 do + printf("%s(%d) ", list[i], vocab:get_word_str(list[i]).id) + end + printf("\n") + end +end +]]-- diff --git a/nerv/examples/lmptb/lmptb/lmutil.lua b/nerv/examples/lmptb/lmptb/lmutil.lua new file mode 100644 index 0000000..c15c637 --- /dev/null +++ b/nerv/examples/lmptb/lmptb/lmutil.lua @@ -0,0 +1,68 @@ +local Util = nerv.class("nerv.LMUtil") + +--list: table, list of string(word) +--vocab: nerv.LMVocab +--ty: nerv.CuMatrix +--Returns: nerv.CuMatrixFloat +--Create a matrix of type 'ty', size #list * vocab:size(). null_word will become a zero vector. +function Util.create_onehot(list, vocab, ty) + local m = ty(#list, vocab:size()) + m:fill(0) + for i = 1, #list, 1 do + --index in matrix starts at 0 + if (list[i] ~= vocab.null_token) then + m[i - 1][vocab:get_word_str(list[i]).id - 1] = 1 + end + end + return m +end + +function Util.wait(sec) + local start = os.time() + repeat until os.time() > start + sec +end + +local Result = nerv.class("nerv.LMResult") + +--global_conf: table +--vocab:nerv.LMVocab +function Result:__init(global_conf, vocab) + self.gconf = global_conf + self.vocab = vocab +end + +--cla:string +--Initialize status of class cla +function Result:init(cla) + self[cla] = {logp_all = 0, logp_unk = 0, cn_w = 0, cn_unk = 0, cn_sen = 0} +end + +--cla:string +--w:string +--prob:float, the probability +function Result:add(cla, w, prob) + self[cla].logp_all = self[cla].logp_all + math.log10(prob) + if (self.vocab:is_unk_str(w)) then + self[cla].logp_unk = self[cla].logp_unk + math.log10(prob) + self[cla].cn_unk = self[cla].cn_unk + 1 + end + if (w == self.vocab.sen_end_token) then + self[cla].cn_sen = self[cla].cn_sen + 1 + else + self[cla].cn_w = self[cla].cn_w + 1 + end +end + +function Result:ppl_net(cla) + local c = self[cla] + return math.pow(10, -(c.logp_all - c.logp_unk) / (c.cn_w - c.cn_unk + c.cn_sen)) +end + +function Result:ppl_all(cla) + local c = self[cla] + return math.pow(10, -(c.logp_all) / (c.cn_w + c.cn_sen)) +end + +function Result:status(cla) + return "LMResult status of " .. cla .. ": " .. "<SEN_CN " .. self[cla].cn_sen .. "> <W_CN " .. self[cla].cn_w .. "> <PPL_NET " .. self:ppl_net(cla) .. "> <PPL_OOV " .. self:ppl_all(cla) .. "> <LOGP " .. self[cla].logp_all .. ">" +end diff --git a/nerv/examples/lmptb/lmptb/lmvocab.lua b/nerv/examples/lmptb/lmptb/lmvocab.lua new file mode 100644 index 0000000..3d256c0 --- /dev/null +++ b/nerv/examples/lmptb/lmptb/lmvocab.lua @@ -0,0 +1,141 @@ +local Vocab = nerv.class("nerv.LMVocab") + +local printf = nerv.printf + +local mysplit = function(inputstr, sep) + if sep == nil then + sep = "%s" + end + local t={} ; i=1 + for str in string.gmatch(inputstr, "([^"..sep.."]+)") do + t[i] = str + i = i + 1 + end + return t +end + +function Vocab:__init(global_conf) + self.gconf = global_conf + self.sen_end_token = "</s>" + self.unk_token = "<unk>" + self.null_token = "<null>" --indicating end of stream(in feeder) + self.log_pre = "[LOG]LMVocab:" + self.map_str = {} --map from str to word_entry + self.map_id = {} --map from id to word_entry + + self:add_word(self.sen_end_token) + self:add_word(self.unk_token) +end + +--id: int +--w_str: string +--Returns: table +function Vocab:new_word_entry(id, w_str) + return { ["id"] = id, + ["str"] = w_str, + ["cnt"] = 0, + } +end + +--Returns: int +function Vocab:size() + return #self.map_id +end + +--w_str: string +--if w_str is not in vocab, then add it in, if it is already in, do nothing +function Vocab:add_word(w_str) + if (self.map_str[w_str] ~= nil) then + return + end + local e = self:new_word_entry(self:size() + 1, w_str) + self.map_id[self:size() + 1] = e + self.map_str[w_str] = e +end + +--Returns: table, the entry of the unk +function Vocab:get_unk_entry() + if (self.map_str[self.unk_token] == nil) then + nerv.error("unk entry not found.") + end + return self.map_str[self.unk_token] +end + +--Returns: table, the entry of sentence end +function Vocab:get_sen_entry() + if (self.map_str[self.sen_end_token] == nil) then + nerv.error("sen end token not found") + end + return self.map_str[self.sen_end_token] +end + +function Vocab:is_unk_str(w) + if (key == self.null_token) then + nerv.error("Vocab:get_word_str is called by the null token") + end + if (w == self.unk_token or self.map_str[w] == nil) then + return true + else + return false + end +end + +--key: string +--Returns: table, the word_entry of this key +function Vocab:get_word_str(key) + if (self.map_str[key] == nil) then + return self:get_unk_entry() + end + if (key == self.null_token) then + nerv.error("Vocab:get_word_str is called by the null token") + end + return self.map_str[key] +end + +--key: int +--Returns: table +function Vocab:get_word_id(key) + if (self.map_id[key] == nil) then + nerv.error("id key %d does not exist.", key) + end + return self.map_id(key) +end + +--fh: file_handle +--Returns: a list of tokens(string) in the line, if there is no "</s>" at the end, the function will at it, if nothing to read, returns nil +function Vocab:read_line(fh) + local l_str = fh:read("*line") + if (l_str == nil) then return nil end + local list = mysplit(l_str) + if (list[(#list)] ~= self.sen_end_token) then + list[#list + 1] = self.sen_end_token + end + return list +end + +--fn: string +--Add all words in fn to the vocab +function Vocab:build_file(fn) + printf("%s Vocab building on file %s...\n", self.log_pre, fn) + local file = io.open(fn, "r") + while (true) do + local list = self:read_line(file) + if (list == nil) then + break + else + for i = 1, #list, 1 do + self:add_word(list[i]) + end + end + end + file:close() + printf("%s Building finished, vocab size now is %d.\n", self.log_pre, self:size()) +end + +--[[test +do + local test_fn = "/home/slhome/txh18/workspace/nerv-project/some-text" + local vocab = nerv.LMVocab() + vocab:build_file(test_fn) +end +]]-- diff --git a/nerv/examples/lmptb/main.lua b/nerv/examples/lmptb/main.lua new file mode 100644 index 0000000..e797254 --- /dev/null +++ b/nerv/examples/lmptb/main.lua @@ -0,0 +1,341 @@ +require 'lmptb.lmvocab' +require 'lmptb.lmfeeder' +require 'lmptb.lmutil' +nerv.include('lmptb/layer/init.lua') + +--[[global function rename]]-- +printf = nerv.printf +--[[global function rename ends]]-- + +--global_conf: table +--first_time: bool +--Returns: a ParamRepo +function prepare_parameters(global_conf, first_time) + printf("%s preparing parameters...\n", global_conf.sche_log_pre) + + if (first_time) then + ltp_ih = nerv.LinearTransParam("ltp_ih", global_conf) + ltp_ih.trans = global_conf.cumat_type(global_conf.vocab:size(), global_conf.hidden_size) + ltp_ih.trans:generate(global_conf.param_random) + + ltp_hh = nerv.LinearTransParam("ltp_hh", global_conf) + ltp_hh.trans = global_conf.cumat_type(global_conf.hidden_size, global_conf.hidden_size) + ltp_hh.trans:generate(global_conf.param_random) + + ltp_ho = nerv.LinearTransParam("ltp_ho", global_conf) + ltp_ho.trans = global_conf.cumat_type(global_conf.hidden_size, global_conf.vocab:size()) + ltp_ho.trans:generate(global_conf.param_random) + + bp_h = nerv.BiasParam("bp_h", global_conf) + bp_h.trans = global_conf.cumat_type(1, global_conf.hidden_size) + bp_h.trans:generate(global_conf.param_random) + + bp_o = nerv.BiasParam("bp_o", global_conf) + bp_o.trans = global_conf.cumat_type(1, global_conf.vocab:size()) + bp_o.trans:generate(global_conf.param_random) + + local f = nerv.ChunkFile(global_conf.param_fn, 'w') + f:write_chunk(ltp_ih) + f:write_chunk(ltp_hh) + f:write_chunk(ltp_ho) + f:write_chunk(bp_h) + f:write_chunk(bp_o) + f:close() + end + + local paramRepo = nerv.ParamRepo() + paramRepo:import({global_conf.param_fn}, nil, global_conf) + + printf("%s preparing parameters end.\n", global_conf.sche_log_pre) + + return paramRepo +end + +--global_conf: table +--Returns: nerv.LayerRepo +function prepare_layers(global_conf, paramRepo) + printf("%s preparing layers...\n", global_conf.sche_log_pre) + local recurrentLconfig = {{["bp"] = "bp_h", ["ltp_ih"] = "ltp_ih", ["ltp_hh"] = "ltp_hh"}, {["dim_in"] = {global_conf.vocab:size(), global_conf.hidden_size}, ["dim_out"] = {global_conf.hidden_size}, ["break_id"] = global_conf.vocab:get_sen_entry().id, ["independent"] = global_conf.independent}} + local layers = { + ["nerv.LMAffineRecurrentLayer"] = { + ["recurrentL1"] = recurrentLconfig, + }, + + ["nerv.SigmoidLayer"] = { + ["sigmoidL1"] = {{}, {["dim_in"] = {global_conf.hidden_size}, ["dim_out"] = {global_conf.hidden_size}}} + }, + + ["nerv.AffineLayer"] = { + ["outputL"] = {{["ltp"] = "ltp_ho", ["bp"] = "bp_o"}, {["dim_in"] = {global_conf.hidden_size}, ["dim_out"] = {global_conf.vocab:size()}}}, + }, + + ["nerv.SoftmaxCELayer"] = { + ["softmaxL"] = {{}, {["dim_in"] = {global_conf.vocab:size(), global_conf.vocab:size()}, ["dim_out"] = {1}}}, + }, + } + + printf("%s adding %d bptt layers...\n", global_conf.sche_log_pre, global_conf.bptt) + for i = 1, global_conf.bptt do + layers["nerv.LMAffineRecurrentLayer"]["recurrentL" .. (i + 1)] = recurrentLconfig + layers["nerv.SigmoidLayer"]["sigmoidL" .. (i + 1)] = {{}, {["dim_in"] = {global_conf.hidden_size}, ["dim_out"] = {global_conf.hidden_size}}} + end + local layerRepo = nerv.LayerRepo(layers, paramRepo, global_conf) + printf("%s preparing layers end.\n", global_conf.sche_log_pre) + return layerRepo +end + +--global_conf: table +--layerRepo: nerv.LayerRepo +--Returns: a nerv.DAGLayer +function prepare_dagLayer(global_conf, layerRepo) + printf("%s Initing daglayer ...\n", global_conf.sche_log_pre) + + --input: input_w, input_w, ... input_w_now, last_activation + local dim_in_t = {} + for i = 1, global_conf.bptt + 1 do dim_in_t[i] = global_conf.vocab:size() end + dim_in_t[global_conf.bptt + 2] = global_conf.hidden_size + dim_in_t[global_conf.bptt + 3] = global_conf.vocab:size() + --[[ softmax + | \ + ouptut i(bptt+3) + | + recurrentL(bptt+1)... recurrentL2-recurrentL1 + / | | | + i(bptt+2) i(bptt+1) i2 i1 + ]]-- + local connections_t = { + ["recurrentL1[1]"] = "sigmoidL1[1]", + ["sigmoidL1[1]"] = "outputL[1]", + ["outputL[1]"] = "softmaxL[1]", + ["softmaxL[1]"] = "<output>[1]" + } + for i = 1, global_conf.bptt, 1 do + connections_t["<input>["..i.."]"] = "recurrentL"..i.."[1]" + connections_t["recurrentL"..(i+1).."[1]"] = "sigmoidL"..(i+1).."[1]" + connections_t["sigmoidL"..(i+1).."[1]"] = "recurrentL"..i.."[2]" + end + connections_t["<input>["..(global_conf.bptt+1).."]"] = "recurrentL"..(global_conf.bptt+1).."[1]" + connections_t["<input>["..(global_conf.bptt+2).."]"] = "recurrentL"..(global_conf.bptt+1).."[2]" + connections_t["<input>["..(global_conf.bptt+3).."]"] = "softmaxL[2]" + printf("%s printing DAG connections:\n", global_conf.sche_log_pre) + for key, value in pairs(connections_t) do + printf("\t%s->%s\n", key, value) + end + + local dagL = nerv.DAGLayer("dagL", global_conf, {["dim_in"] = dim_in_t, ["dim_out"] = {1}, ["sub_layers"] = layerRepo, + ["connections"] = connections_t, + }) + dagL:init(global_conf.batch_size) + printf("%s Initing DAGLayer end.\n", global_conf.sche_log_pre) + return dagL +end + +--Returns: table +function create_dag_input(global_conf, token_store, hidden_store, tnow) + local dagL_input = {} + for i = 1, global_conf.bptt + 1 do + dagL_input[i] = nerv.LMUtil.create_onehot(token_store[tnow - i + 1], global_conf.vocab, global_conf.cumat_type) + end + dagL_input[global_conf.bptt + 2] = hidden_store[tnow - global_conf.bptt - 1] + dagL_input[global_conf.bptt + 3] = nerv.LMUtil.create_onehot(token_store[tnow + 1], global_conf.vocab, global_conf.cumat_type) + + return dagL_input +end + +--global_conf: table +--dagL: nerv.DAGLayer +--fn: string +--config: table +--Returns: table, result +function propagateFile(global_conf, dagL, fn, config) + printf("%s Begining doing on %s...\n", global_conf.sche_log_pre, fn) + if (config.do_train == true) then printf("%s do_train in config is true.\n", global_conf.sche_log_pre) end + local feeder = nerv.LMFeeder(global_conf, global_conf.batch_size, global_conf.vocab) + feeder:open_file(fn) + + local tnow = 1 + local token_store = {} + local hidden_store = {} + local sigmoidL_ref = dagL.layers["sigmoidL1"] + + token_store[tnow] = feeder:get_batch() + for i = 1, global_conf.bptt + 1 do + hidden_store[tnow - i] = global_conf.cumat_type(global_conf.batch_size, global_conf.hidden_size) + hidden_store[tnow - i]:fill(0) + token_store[tnow - i] = {} + for j = 1, global_conf.batch_size do token_store[tnow - i][j] = global_conf.vocab.null_token end + end + + local dagL_output = {global_conf.cumat_type(global_conf.batch_size, 1)} + local dagL_err = {nil} --{global_conf.cumat_type(global_conf.batch_size, 1)} + local dagL_input_err = {} + for i = 1, global_conf.bptt + 1 do + dagL_input_err[i] = global_conf.cumat_type(global_conf.batch_size, global_conf.vocab:size()) + end + dagL_input_err[global_conf.bptt + 2] = global_conf.cumat_type(global_conf.batch_size, global_conf.hidden_size) + dagL_input_err[global_conf.bptt + 3] = global_conf.cumat_type(global_conf.batch_size, global_conf.vocab:size()) + + local result = nerv.LMResult(global_conf, global_conf.vocab) + result:init("rnn") + + while (1) do + token_store[tnow + 1] = feeder:get_batch() --The next word(to predict) + if (token_store[tnow + 1] == nil) then break end + + local dagL_input = create_dag_input(global_conf, token_store, hidden_store, tnow) + --dagL:propagate(dagL_input, dagL_output) + + hidden_store[tnow] = global_conf.cumat_type(global_conf.batch_size, global_conf.hidden_size) + hidden_store[tnow]:copy_fromd(sigmoidL_ref.outputs[1]) + + if (config.do_train == true) then + --dagL:back_propagate(dagL_err, dagL_input_err, dagL_input, dagL_output) + --dagL:update(dagL_err, dagL_input, dagL_output) + end + + for i = 1, global_conf.batch_size, 1 do + if (token_store[tnow + 1][i] ~= global_conf.vocab.null_token) then + result:add("rnn", token_store[tnow + 1][i], math.exp(dagL_output[1][i - 1][0])) + if (config.report_word == true) then + printf("%s %s: <stream %d> <prob %f>\n", global_conf.sche_log_pre, token_store[tnow + 1][i], i, math.exp(dagL_output[1][i - 1][0])) + end + end + if (result["rnn"].cn_w % global_conf.log_w_num == 0) then + printf("%s %d words processed.\n", global_conf.sche_log_pre, result["rnn"].cn_w) + end + end + + token_store[tnow - 2 - global_conf.bptt] = nil + hidden_store[tnow - 2 - global_conf.bptt] = nil + collectgarbage("collect") + tnow = tnow + 1 + end + + printf("%s Displaying result:\n", global_conf.sche_log_pre) + printf("%s %s\n", global_conf.sche_log_pre, result:status("rnn")) + printf("%s Doing on %s end.\n", global_conf.sche_log_pre, fn) + + return result +end + +--returns dagL, paramRepo +function load_net(global_conf) + local paramRepo = prepare_parameters(global_conf, false) + local layerRepo = prepare_layers(global_conf, paramRepo) + local dagL = prepare_dagLayer(global_conf, layerRepo) + return dagL, paramRepo +end + +--[[global settings]]-- +local set = "ptb" + +if (set == "ptb") then + train_fn = "/home/slhome/txh18/workspace/nerv-project/nerv/examples/lmptb/PTBdata/ptb.train.txt" + valid_fn = "/home/slhome/txh18/workspace/nerv-project/nerv/examples/lmptb/PTBdata/ptb.valid.txt" + test_fn = "/home/slhome/txh18/workspace/nerv-project/nerv/examples/lmptb/PTBdata/ptb.test.txt" + work_dir_base = "/home/slhome/txh18/workspace/nerv-project/lmptb-work" + global_conf = { + lrate = 0.1, wcost = 1e-6, momentum = 0, + cumat_type = nerv.CuMatrixFloat, + mmat_type = nerv.CuMatrixFloat, + + hidden_size = 100, + batch_size = 10, + bptt = 3, --train bptt_block's words. could be set to zero + max_iter = 15, + param_random = function() return (math.random() / 5 - 0.1) end, + independent = true, + + train_fn = train_fn, + valid_fn = valid_fn, + test_fn = test_fn, + sche_log_pre = "[SCHEDULER]:", + log_w_num = 100000, --give a message when log_w_num words have been processed + } + global_conf.work_dir = work_dir_base.."/h"..global_conf.hidden_size.."bp"..global_conf.bptt.."slr"..global_conf.lrate..os.date("_%bD%dH%H") + global_conf.param_fn = global_conf.work_dir.."/params" +elseif (set == "test") then + train_fn = "/home/slhome/txh18/workspace/nerv-project/some-text" + valid_fn = "/home/slhome/txh18/workspace/nerv-project/some-text" + test_fn = "/home/slhome/txh18/workspace/nerv-project/some-text" + work_dir = "/home/slhome/txh18/workspace/nerv-project/lmptb-work-play" + global_conf = { + lrate = 0.1, wcost = 1e-6, momentum = 0, + cumat_type = nerv.CuMatrixFloat, + mmat_type = nerv.CuMatrixFloat, + + hidden_size = 5, + batch_size = 1, + bptt = 1, --train bptt_block's words. could be set to zero + max_iter = 15, + param_random = function() return (math.random() / 5 - 0.1) end, + independent = true, + + train_fn = train_fn, + valid_fn = valid_fn, + test_fn = test_fn, + work_dir = work_dir, + param_fn = work_dir .. "/params", + + sche_log_pre = "[SCHEDULER]:", + log_w_num = 80000, --give a message when log_w_num words have been processed + } +end + +local vocab = nerv.LMVocab() +global_conf["vocab"] = vocab + +printf("%s printing global_conf...\n", global_conf.sche_log_pre) +for key, value in pairs(global_conf) do + printf("\t%s=%s\n", key, value) +end +printf("%s wait 3 seconds...\n", global_conf.sche_log_pre) +nerv.LMUtil.wait(3) +printf("%s creating work_dir...\n", global_conf.sche_log_pre) +os.execute("mkdir -p "..global_conf.work_dir) + +scheduler = " printf(\"===INITIAL VALIDATION===\\n\") \ + dagL, paramRepo = load_net(global_conf) \ + local result = propagateFile(global_conf, dagL, global_conf.valid_fn, {do_train = false, report_word = false}) \ + ppl_rec = {} \ + ppl_rec[0] = result:ppl_net(\"rnn\") ppl_last = ppl_rec[0] \ + printf(\"\\n\") \ + for iter = 1, global_conf.max_iter, 1 do \ + printf(\"===ITERATION %d LR %f===\\n\", iter, global_conf.lrate) \ + global_conf.sche_log_pre = \"[SCHEDULER ITER\"..iter..\" LR\"..global_conf.lrate..\"]:\" \ + dagL, paramRepo = load_net(global_conf) \ + propagateFile(global_conf, dagL, global_conf.train_fn, {do_train = true, report_word = false}) \ + printf(\"===VALIDATION %d===\\n\", iter) \ + local result = propagateFile(global_conf, dagL, global_conf.valid_fn, {do_train = false, report_word = false}) \ + ppl_rec[iter] = result:ppl_net(\"rnn\") \ + if (ppl_last / ppl_rec[iter] < 1.03) then \ + global_conf.lrate = (global_conf.lrate / 2) \ + end \ + if (ppl_rec[iter] < ppl_last) then \ + printf(\"%s saving net to file %s...\\n\", global_conf.sche_log_pre, global_conf.param_fn) \ + paramRepo:export(global_conf.param_fn, nil) \ + ppl_last = ppl_rec[iter] \ + else \ + printf(\"%s PPL did not improve, rejected...\\n\", global_conf.sche_log_pre) \ + end \ + printf(\"\\n\") \ + nerv.LMUtil.wait(2) \ + end \ + printf(\"===VALIDATION PPL record===\\n\") \ + for i = 0, #ppl_rec do printf(\"<%d: %.2f> \", i, ppl_rec[i]) end \ + printf(\"\\n\") \ + printf(\"===FINAL TEST===\\n\") \ + global_conf.sche_log_pre = \"[SCHEDULER FINAL_TEST]:\" \ + dagL, _ = load_net(global_conf) \ + propagateFile(global_conf, dagL, global_conf.test_fn, {do_train = false, report_word = false})" +printf("%s printing schedule:\n", global_conf.sche_log_pre) +printf("%s\n", scheduler) +printf("%s wait 3 seconds...\n", global_conf.sche_log_pre) +nerv.LMUtil.wait(3) +--[[global settings end]]-- + +global_conf.vocab:build_file(global_conf.train_fn) + +prepare_parameters(global_conf, true) + +assert(loadstring(scheduler))() diff --git a/nerv/examples/lmptb/nerv b/nerv/examples/lmptb/nerv new file mode 100755 index 0000000..7b3b879 --- /dev/null +++ b/nerv/examples/lmptb/nerv @@ -0,0 +1,3 @@ +#!/bin/sh + +exec '/home/slhome/txh18/workspace/nerv-project/nerv/install/bin/luajit' -e 'package.path="/home/slhome/txh18/.luarocks//share/lua/5.1/?.lua;/home/slhome/txh18/.luarocks//share/lua/5.1/?/init.lua;/home/slhome/txh18/workspace/nerv-project/nerv/install/share/lua/5.1/?.lua;/home/slhome/txh18/workspace/nerv-project/nerv/install/share/lua/5.1/?/init.lua;"..package.path; package.cpath="/home/slhome/txh18/.luarocks//lib/lua/5.1/?.so;/home/slhome/txh18/workspace/nerv-project/nerv/install/lib/lua/5.1/?.so;"..package.cpath' -e 'local k,l,_=pcall(require,"luarocks.loader") _=k and l.add_context("nerv","scm-1")' '/home/slhome/txh18/workspace/nerv-project/nerv/install/lib/luarocks/rocks/nerv/scm-1/bin/nerv' "$@" diff --git a/nerv/examples/lmptb/nerv-old b/nerv/examples/lmptb/nerv-old new file mode 100755 index 0000000..4912bed --- /dev/null +++ b/nerv/examples/lmptb/nerv-old @@ -0,0 +1,3 @@ +#!/bin/bash +NERV_PATH="../.." +exec "${NERV_PATH}/build/luajit-2.0/bin/luajit" -e "package.cpath=\"${NERV_PATH}/build/lib/?.so\"" -e "package.path=\"${NERV_PATH}/build/lua/?/init.lua;${NERV_PATH}/build/lua/?.lua;./?.lua;./?/init.lua\"" -e "require 'nerv'" "$@" |